Iron ore prices enjoyed their biggest one-day jump since October 2012, rising 5.9% to more than $54/metric ton - still near 10-year lows - after BHP Billiton (NYSE:BHP) announced it is slowing the pace of its expansion program. Analysts say the decision will lower BHP's capex profile over the next few years to preserve free cash flow to support the dividend and balance sheet, and could deflect some of the negative public commentary about surplus supply.
Personally I wouldn't attach too much significance to the Xmas bonus payment; as was announced in the last RNS, LOND is paying AML $475k per month in employees' wages and a $100k fee per month for use of their railway and rolling stock. The bonus could easily come from that source. It is encouraging though, that the parties are still talking, even if we cannot say for sure whether they have agreed or signed anything over the weekend.