Bali blasts may hurt global economy

Bali blasts may hurt global economy

MELBOURNE, AUSTRALIA: Australia-based resources conglomerate
BHP Billiton (BHP) warned Tuesday that terrorist bomb blasts over
the weekend in Bali, Indonesia, could threaten the prospects for
a recovery in the global economy.

Briefing analysts in Sydney, BHP Billiton's head of base
metals, Brad Mills, said that while low metal stocks mean prices
are set to rally sharply once industrial production recovers, the
"negative scenario" is that the latest terrorist attacks could
prove another external shock to the world economy.

"The negative scenario is that...the very tragic events over
the weekend are another external shock to the entire world
economy that sinks to a lower level that takes us to a place
we've never been before, and we then have to work our way through
that," Mills said.

On the plus side, he said the low level of consumer stocks
means the base metal market is primed for a rally.

"Industrial production is the key driver for us in the base
metal business, and if we see industrial production pick up you
will see a very rapid change in the price of base metals," he
said. -- Dow Jones