analyst certification and required disclosures begin on page 130 1 ubs does seeks to do business with companies covered in its research reports as a result investors should be aware that the firm may have conflict of interest could affect objectivity this report consider only single factor making their investment decision global basic resources equity market comment ab commodity connections q3 2006 cyclical inflection vs secular reality null downward pressure growth worries pressures emerged over past quarter casting doubt near term performance commodities rising rates back emerging inflationary put into question reduced attractiveness carry trade upward inelasticity both demand supply our analysis suggests elasticity high prices is considerably lower than expected particular note continues disappoint cost inflation runs project delays risks become norm stronger for longer view remains unchanged asset allocation china while supportive
