Commodities Risk Crash on China Recession Threat, Smead Says - Businessweek

Commodities Risk Crash on China Recession Threat, Smead Says - Businessweek: "By Ann Koh
(Updates with commodity index in the last paragraph.)

Feb. 10 (Bloomberg) -- China is at risk of falling into a recession by 2015 that would reduce commodity prices as much as 70 percent, according to the chief executive officer at Smead Capital Management Inc.

Commodities from copper to crude oil may drop 50 percent to 70 percent from current prices in three years to five years, Bill Smead, CEO of the Seattle-based mutual fund, said in an interview in Singapore. China, the world’s biggest consumer of energy, metals and grains, has a 30 percent chance of slipping into a recession as property prices fall, hurting local banks that made loans to developers and home buyers, he said."

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