21/08/2012 World Business Report

take up to six months. All eyes on whether the world's largest merger

between commodities giant Glencore and mining company Xstrata is still

on the table when Glencore updates Back to business for Maruti, the

car maker resumes operations at its plant in india a month after a riot

that left one worker dead and The ages him -- Asian stock markets

are rising and is hoped for action in Europe to solve the debt crisis.

It seems even the world's largest and most diversified commodity and

mining giant can't insulate itself from a slowing world economy. Today,

the Swiss multinational Glencore is forecast to announce a drop of

around a third in its first half profits to around one point six

billion dollars. Lower prices and falling demand for minerals remain

the main reasons for the expected fall. The company owns 34% of rival

mining group Xstrata, and is currently trying to buy the rest.

But its current offer has met with resistance. Here's our Europe

business correspondent Nigel , was a hot commodity Beckington

$1,000 per tonne and no it's only $7,500. There have been strikes and

our problems. It's the output of commodities which as it is hard. As

a major mining company, the results are used all economic indicator. In

the last six months it's seen at 10% fall for prices in Copa, zinc

and Kohl which is a reflection of the fall in world growth. There is

no producer that able to buck the slack market. The commodity prices

have suffered this year as a result of the island and in China and

concerns in Europe slow growth in the US. We are less marl rubble to

those weaker prices. We have strict as the market leader and a trader.

One strategy much right at these price bumps and it is to borrow the

rest of Xstrata. It owns did it all%. It Xstrata shareholders are

asking for Walsh used to do this deal. But there is a breeze: But it

may stick to its bid be in dollars offer. Times are hard for commodity

producers. Maruti Suzuki will resume partial operations at its

Manesar plant in the Indian state of Haryana on Tuesday. It's over a

month since a riot by the workers claimed the life of a company

official, injured 100 others, and left a trail of destruction through

the factory. Only 300 permanent workers will resume duty on Tuesday.

His is a significant dairy as the workers into the practical at first

I am our demands of close down following violent clashes between

management and staff. One manager was killed and 100 workers were

injured in a clash which left parts of these factory damaged. The

company will not take any more chances and has deployed security

officers or the managers and estate has deployed 500 armed police

border security. Production will only be partial with 300 employees

inside and they aim to produce 150 cars, which is just a fraction of

its capability. When it was fully functional they produced 1,500 cars

of the top selling has. It accounts for one-third of the capacity.

That's a very significant thing that they will presume to resume

production. You spoke about dropping the production levels and

the fact that only a skeleton sheet will work there at the factory.

Please remind us about the background of this, why did the

workers' strike in the first place? All but violence? The police are

still investigating. There has been simmering tension in the industrial

belt here. Many industries here employ contractors who are lowly

paid hand who are not given the same benefits as the pulled unstuck.

The root of this problem is the archaic labour laws which people

need to change. It makes it difficult or the manufacturers to

hire and fire employees or close down a factory. Many companies

import contractors who were easier to hand paid less with no benefits.

There has been simmering tension and unrest. Talk us through how

badly his hiatus in the operation at his factory will affect the

Suzuki Company as a whole? But for what I% of the overall production.

45%. He is is as significant plant with one-third of total production.

When it was fully operational they produced 1,500 cars every day. Why

were the top selling Suzuki cars. Now only 300 employees are

producing cars and it's only partial production aiming at only

150 cars every day. At a fraction of their total. When a shutdown

that were losing their $18 million every day. That is a lot because

this is a crucial factory in India. Des upcoming festivals so the

carmakers arranging for the consumers are around festival

season to have production up and running before then. Lets cross

over to Singapore where Asian It's good to see you. Why have the

stocks reason? Is it more than expected? Basically, three actors.

Investors at an undervalue in good defensive stock with confidence in

the US recovery and hopes for action in Europe. Big gains have

been capped as investors wait for more details will stop the Japanese

amid reports that the company will cut 8,000 jobs or eat it % of its

workforce. The stock has risen today. Stuff Korea is also a

positive. Fund managers are going defensive. Memory chip manufacture

ring is up today. Prices seem to have stabilised. Taiwan is also

going positive today with HDC climbing 1%. They have hinted.

Asian stocks are also rising on domestic situations. It's not just

based on the US and the European Virgin Atlantic is to begin a

short-haul service between London Heathrow and Manchester from next

March. The airline says its first foray into the UK domestic market

will provide competition for British Airways. The move comes

just days after Virgin Trains lost the right to operate the West Coast

main line, which also links London and Manchester. Virgin says that

65% of people who fly from Manchester to London then connect

on to another long-haul flight, and they want a share of that market.

George Soros, the billionaire hedge fund manager, has bought a near 8

per cent stake in the listed shares of Premier League football club

Manchester United. The move makes Mr Soros one of the club's biggest

backers behind the Glazer family, who decided to float a portion of

the club in New York this month. Manchester United shares have had a

rough start since their debut at an initial price of $14 a share. The

company's stock closed at $13.06 on Monday. Shareholders of China's two

largest online video firms, Youku and Tudou, have approved their plan

to merge and create the biggest online video firm in China.The plan,

announced in March, will see Youku acquire rival Tudou via a stock