Market Update

General - Kidman

Good afternoon

German business confidence drops again - but PMI is rising. Consumer spending was strong - up by 1,2% in the first Quarter.

US PMI is the worst since 2009 - only just in positive territory! The trade war is beginning to seriously bite Trump-country!

Worries about the trade war have a firm grip on markets - equities weak, metals a little weaker as well - bonds continue their run, and - finally - gold is strong This is no fun…and Trump, with all his trouble at home, needs a win - let´s hope, that he does not need a war! So far, China has played a very diplomatic rule - but it won´t be for long - one day, they will fight back with their own measures on tzrade, lithium, are earth or god knows what. In any case - Apple continues to fall, and that is not a good indication for the trade war ending any time soon.

Iron ore is defying the market so far - I guess investors expect Chinese programs to support the economy mainly in sectors, which are steel-consuming like construction/infrastructur.

Oil is finally getting caught in trade war fears, and is experiencing a heave one-two punch yesterday and even worse, today.

Kidman Resources - Wesfarmers are one step closer to take them over - getting substantial support from Kidman´s JV-partner SQM, as well has already having a board recomemndation from KDR for shareholders to accept. I t would be surprised now to see an alternative bidder coming out of the wood!

I fear no real micro news in our space today, and tomorrow, I will be in the motherland of soccer, and home to Mrs.May !

Have a good evening