BHP Billiton Puts a "PICK" in the Back of Commodities

May 16, 2012 9:18 AM EDT
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Shares of BHP Billiton Ltd. (NYSE: BHP) are trading lower in pre-market after the mining company announced it will fall short of its $80B, 5 year spending target. The mining company also said it sees declining commodity prices.

Jac Nasser, chairman of the Melbourne-based company, told reporters today in Sydney, "We should pause, take a deep breath and wait and see where the pieces fall around the world."

Rio Tinto Group (NYSE: RIO), another large mining company, is also reducing costs. The cutback in spending is tied to falling commodity prices and slowing growth around the world, especially in China.

MSCI Global Select Metals & Mining Producers ETF (NYSE: PICK) has large holding in both BHP and RIO. PICK is down over 22 percent year-to-date.

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