Browse content similar to 09/12/2015. Check below for episodes and series from the same categories and more!
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Resources sector digging a hole? And the key industries best known | :00:20. | :00:38. | |
families. -- tea. Glad you can join us. There has been a global sell-off | :00:39. | :00:47. | |
in commodity stocks as Brent crude fell to below $40 per barrel in | :00:48. | :00:53. | |
almost 30 years and I and all hit a ten year low. -- iron ore. A slight | :00:54. | :01:07. | |
recovery fall crude. A gain of 1.7% from the close in New York. Brent | :01:08. | :01:19. | |
crude also higher. At one point, we saw these prices fall below $40 per | :01:20. | :01:27. | |
barrel and at the lowest level since the collapse of Lehman Brothers in | :01:28. | :01:36. | |
2009. The price of red crude oil fell below $40 per barrel on | :01:37. | :01:43. | |
Tuesday, a 60% drop over the past 18 months. Companies are warning that | :01:44. | :01:48. | |
profits will not be as good and demand for oil - the lifeblood of | :01:49. | :01:54. | |
the economic system - is waning but despite this, on Friday, the major | :01:55. | :02:00. | |
group OPEC refused to cut back production and instead members in | :02:01. | :02:08. | |
Iran and Iraq promised to ramp up production. Since then, the dollar | :02:09. | :02:12. | |
has strengthened putting more pressure on the price of commodities | :02:13. | :02:20. | |
like oil. Vic continuing slide of iron ore and the mining stocks | :02:21. | :02:28. | |
sinking. -- the continuing price. Plans to cuts to staff to 50,000 | :02:29. | :02:36. | |
from 2017. Prices are now at a ten year low having fallen sharply from | :02:37. | :02:44. | |
August when they were at $140 per ton. Some fear they could still go | :02:45. | :02:52. | |
lower. Analysts saying companies will struggle to break even if | :02:53. | :03:00. | |
prices fall below $30. I asked which will be most at risk. Probably the | :03:01. | :03:07. | |
smaller ones. The bigger ones have staying power. For some it cost $18 | :03:08. | :03:16. | |
per ton to bring the material out off the ground. They are also in | :03:17. | :03:22. | |
eight consolidation phase. What is it like to come back? China has the | :03:23. | :03:29. | |
biggest piece of demand and eye on all - they are the biggest steel | :03:30. | :03:40. | |
producer. -- eye on all. -- iron ore. It is losing its lustre. Where | :03:41. | :03:50. | |
do we see it by 2016? It could head lower because, if you look at the | :03:51. | :03:56. | |
big companies and everything they are doing to drive cost efficiency | :03:57. | :04:02. | |
and production costs being $18, let's say, it can head towards that. | :04:03. | :04:17. | |
What about the price of oil at 70 -- seven Ye lows? US production is | :04:18. | :04:24. | |
expected to decline for the first time in eight years. It has seen on | :04:25. | :04:31. | |
average 1 million in its production tanks, from next year it is expected | :04:32. | :04:38. | |
the 100 thousand less. But Russia is producing bowl and demand is going | :04:39. | :04:43. | |
nowhere so pretty much the same scene will or you'll. Iran and Iraq, | :04:44. | :04:51. | |
if you add them to the equation, putting the oil in the market would | :04:52. | :04:58. | |
depress prices? That is one of the problems in OPEC. As a result, | :04:59. | :05:06. | |
nobody wants to cut and everybody wants prices higher. The slump in | :05:07. | :05:16. | |
commodities is also affecting Morgan Stanley, it has dropped a quarter of | :05:17. | :05:22. | |
its staff. It is closing its basemetal trading desk globally | :05:23. | :05:28. | |
because of pressure from the slump in commodities and smaller profits. | :05:29. | :05:33. | |
China's economy not only has brought about the worst colicky downturn in | :05:34. | :05:41. | |
close to a decade - commodity. But it has also affected other sectors. | :05:42. | :05:49. | |
Real estate developer talks to us. It is humongous. Roughly 20% of the | :05:50. | :05:57. | |
economy isn't related to this industry so, in the old days, when | :05:58. | :06:04. | |
we sold prices go up, many other industries benefited but now as it | :06:05. | :06:14. | |
slows down, 20% of the economy is affected and said the government | :06:15. | :06:17. | |
will have to have other means of spurring the economy. There is a | :06:18. | :06:24. | |
probability the US central bank will raise interest rates in December, | :06:25. | :06:28. | |
what impact will it have on Asia's property market and in Hong Kong and | :06:29. | :06:34. | |
China in particular? In Hong Kong very little because all of the major | :06:35. | :06:39. | |
players have very low debt. I company for the last nine years has | :06:40. | :06:50. | |
had zero net debt. In China it matters more because companies in | :06:51. | :06:57. | |
general are far more in debt had but if you over borrow, you deserve to | :06:58. | :07:08. | |
be hurt. Right? Any developer who is only a market developer is not a | :07:09. | :07:15. | |
good developer. In other business use, shares in Yahoo! Jumping after | :07:16. | :07:21. | |
reports it will not sell off its $32 billion stake in Chinese company | :07:22. | :07:29. | |
Alibaba. Pressure from a potentially huge tax bill from the sell-off. It | :07:30. | :07:36. | |
is looking at spinning its core Internet business instead. Myanmar | :07:37. | :07:42. | |
is launching its first stock exchange. With a reported investment | :07:43. | :07:53. | |
of $24 million, it is a joint venture by the economic bank, double | :07:54. | :07:57. | |
securities and the Japan exchange group. In China, tea it is a | :07:58. | :08:04. | |
medicinal remedy, in India note on the station is complete without tea | :08:05. | :08:10. | |
and in the UK there is no conversation without tea. | :08:11. | :08:17. | |
Competition is tough. We go and meet one famous tea family. It is one of | :08:18. | :08:26. | |
Sri Lanka is big as the companies. Began in the 1950s when the | :08:27. | :08:31. | |
departure of the family decided to bring Sri Lankan tea to the world. | :08:32. | :08:37. | |
It is now expanding to the Middle East and Europe and facing stiff | :08:38. | :08:42. | |
competition from cheaper brand. I caught up with the men behind the | :08:43. | :08:46. | |
family business to find out what makes the company tick. Did you know | :08:47. | :08:52. | |
that it was going to end up becoming in this family run business? What | :08:53. | :08:56. | |
did you tell the children as they were growing up? When they reached | :08:57. | :09:05. | |
11 years of age, our country was in political turmoil and I saw no | :09:06. | :09:10. | |
future so I sent them to the best Christian school in England, for | :09:11. | :09:15. | |
their education, hoping they would nullify well and find jobs but quite | :09:16. | :09:24. | |
contrary to my expectations, both of them, after graduation, joined the | :09:25. | :09:30. | |
family business and that brought me strength and that provides me with | :09:31. | :09:39. | |
so much great ambition for the consumer and for the industry. This | :09:40. | :09:46. | |
is a family run this as. How are you changing or evolving it? -- | :09:47. | :09:53. | |
business. There is an emerging niche market interested in the natural | :09:54. | :09:59. | |
goodness relating to the world is in the product they consume. Are also | :10:00. | :10:05. | |
in terms of the ethics and integrity, things that my father | :10:06. | :10:10. | |
share. Ultimately, we are not looking to address the mass market | :10:11. | :10:17. | |
but rather developing a niche. They have been steeped in the tradition | :10:18. | :10:22. | |
of tea making for generations but finding the perfect cup for two days | :10:23. | :10:28. | |
consumers is likely to be a far more challenging affair. Falling bristles | :10:29. | :10:37. | |
and oil stocks will be pressuring Asian equities once again today. | :10:38. | :10:42. | |
Japan is down but Australia is flat. Thank you for now. | :10:43. | :10:46. |