What’s Behind BHP’s Dividend Cut?

The video discusses BHP's financial strategies, including significant dividend cuts and spending reductions, to protect against credit agency downgrades. It explores the impact of commodity markets on emerging economies, highlighting challenges like inflation and growth slowdown. The Australian dollar's market trends are analyzed, with a focus on its correlation with China's economy and commodity prices. Finally, BHP's market position and foreign exchange strategies are examined, emphasizing its shift towards oil-related assets.

What was the new dividend per share set by BHP Billiton after the cut?

• 88 cents

• 16 cents

• 31 cents

• 62 cents

How much did BHP Billiton write down its U.S. shale assets?

• $1.2 billion

• $7.2 billion

• $8.4 billion

• $5.7 billion

Which factor is NOT mentioned as affecting emerging economies in the transcript?

• Inflation

• Diversified industries

• Weak currencies

• Central bank policies

What is the Australian dollar seen as a proxy for?

• European Union

• Japanese yen

• U.S. economy

• China trade

What has BHP Billiton's share price started to track more closely?

• Oil prices

• Gold prices

• Iron ore prices

• Copper prices

Which currency is mentioned as being well correlated to oil?

• British pound

• Norwegian krone

• Canadian dollar

• Australian dollar

What is a potential strategy if you are confident in China's economic performance?

• Sell the Aussie dollar

• Buy the Aussie dollar

• Invest in European stocks

• Hold U.S. treasury bonds