Browse content similar to 01/10/2012. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
it an anti-Putin punk anthem in at a cathedral. | :00:04. | :00:14. | |
:00:14. | :00:15. | ||
Now it is time for World Business Report. | :00:15. | :00:20. | |
Welcome to World Business Report. The headlines: After months of | :00:20. | :00:24. | |
talks, the board of Xstrata or is set to back the offer from Glencore | :00:24. | :00:29. | |
in what could be the biggest merger this year. With Spain under | :00:29. | :00:32. | |
pressure from the financial markets over its debt levels, we look at | :00:32. | :00:39. | |
how the on our hardest hit. An anti-corruption initiative which | :00:39. | :00:49. | |
:00:49. | :00:53. | ||
takes effect today in China could impact the luxury goods market. | :00:53. | :00:56. | |
It's worth $80 billion. It could be the biggest merger this year. Today, | :00:56. | :01:00. | |
the board of the mining firm Xstrata is expected to finally back | :01:00. | :01:05. | |
a merger offer from Glencore. The two companies may both be in mining | :01:05. | :01:09. | |
but they operate in different areas. Xstrata extract coal, copper and | :01:09. | :01:12. | |
nickel from the ground, while Glencore is a commodities trading | :01:12. | :01:16. | |
house. The deal has been in the works for seven months, held up by | :01:16. | :01:19. | |
disagreement over price as well as the huge pay packages for the | :01:19. | :01:24. | |
management. Shareholders must still backed the deal. It will be put to | :01:24. | :01:31. | |
a vote in late October. I am joined by Rupert Nathan from a financial | :01:31. | :01:35. | |
services firm. And as we have said, Xstrata is | :01:35. | :01:40. | |
finally likely to recommend this deal today. It is by no means a | :01:40. | :01:46. | |
done deal. The rumours over the weekend have been pointing towards | :01:46. | :01:52. | |
the board of Xstrata recommending this. If they do make the | :01:52. | :01:56. | |
recommendation it will have to go to a vote at the end of the month. | :01:56. | :02:01. | |
What will happen in their vote? Some key shareholders are not | :02:01. | :02:05. | |
revealing where they are at as far as this deal is concerned, are | :02:05. | :02:12. | |
they? Yes, Qatar is at the centre, and they are the kingmakers in this | :02:12. | :02:16. | |
game. They, as well as the Norwegians are often well funds who | :02:16. | :02:20. | |
have come out against. Other, more vocal shareholders such as | :02:20. | :02:26. | |
Blackrock have expressed unhappiness with either the quantum | :02:26. | :02:30. | |
of what has been paid, or, alternatively, the controversial | :02:30. | :02:34. | |
share retention packages. If we talk about the price at this point | :02:34. | :02:38. | |
that, what has been the feeling about that? Why have they not been | :02:38. | :02:45. | |
happy with this price? It is far too low. Right from the outset. | :02:45. | :02:50. | |
Back in February - 2.8-one was quoted as the ratio. The bottom | :02:51. | :03:00. | |
:03:01. | :03:03. | ||
line was that the CEO of Glencore felt that with 34% it would go | :03:03. | :03:10. | |
through. A few months ago, Qatar has been adding to its stake and | :03:10. | :03:16. | |
they emerged at 12%. Bear in mind, it only takes 16.5 % to scuttle the | :03:16. | :03:25. | |
deal. It was in jeopardy. The opposing shareholders but -- knew | :03:25. | :03:30. | |
that life had been breathed into the opposition. In terms of who is | :03:30. | :03:40. | |
:03:40. | :03:52. | ||
running this company, it's going to be Mark gleys and -- Glesenburg.... | :03:52. | :03:55. | |
Originally, 72 key managers were going to be kept after the merger. | :03:55. | :04:02. | |
This included the CEO, who was looking into a $30 million pay-out | :04:02. | :04:09. | |
for staining for three years. Along with the 3.054 at one revised price, | :04:09. | :04:18. | |
it was agreed, or rather, proposed, That the C O would step in after | :04:19. | :04:26. | |
six months to take over from Mick Davis -- the CEO. Now we are still | :04:26. | :04:30. | |
talking about $140 million, still a sticking point Mac. If this is | :04:31. | :04:37. | |
recommended today by Xstrata, will shareholders vote against it? | :04:37. | :04:42. | |
still a very close thing. We think there is much further to go. I'd be | :04:42. | :04:51. | |
looking to see what Qatar and the other shareholders have to say. | :04:52. | :04:57. | |
We are expecting this deal in 1.5 hours when the London market's good | :04:57. | :04:59. | |
all the information. We will tell you about it then. | :05:00. | :05:03. | |
The Spanish government has predicted that debt levels will | :05:03. | :05:08. | |
rise further next year as much as 90.5 % of the country's total | :05:08. | :05:12. | |
wealth. That is because of the money spent bailing out the banks. | :05:12. | :05:17. | |
The country is suffering from record levels of unemployment. As a | :05:17. | :05:21. | |
part of our series on the UN and jobless, we look at how the | :05:21. | :05:26. | |
shrinking public sector is hitting the young are hardest -- the young | :05:26. | :05:31. | |
and jobless. This has become a noisy daily | :05:31. | :05:40. | |
routine. Every morning, people who work in Spain's public hospitals | :05:40. | :05:47. | |
cut the traffic on this main road in Madrid. (CHANTING). Angry about | :05:47. | :05:51. | |
government cuts, they are marshalled by the police. This is | :05:51. | :05:58. | |
an indication of just how strongly people feel in Spain about the cuts | :05:58. | :06:01. | |
to public health. There is one section of society that is | :06:01. | :06:08. | |
particularly affected by austerity. That group is the young. Students | :06:08. | :06:14. | |
like this woman, who is now studying to become a doctor. When | :06:14. | :06:24. | |
:06:24. | :06:24. | ||
she finally finishes, four you're - - she will do for years as a junior | :06:24. | :06:27. | |
doctor. She knows it will be hard with ever-diminishing resources in | :06:27. | :06:31. | |
the public health system. I am worried that I won't find anything | :06:32. | :06:36. | |
in my speciality because it is difficult to study and work for | :06:36. | :06:40. | |
about ten years and then going to a hospital and not find anything. | :06:40. | :06:45. | |
It's really, really hard. What if you don't find anything in your | :06:45. | :06:48. | |
speciality? I'm sure that I'm not going to stay here until someone | :06:48. | :06:54. | |
tells me that I have a place. I'm going somewhere else, because I | :06:54. | :06:58. | |
want to work as a doctor. Then there are the junior doctors of | :06:58. | :07:05. | |
today. This woman is a psychiatrist. She is on a temporary contract with | :07:05. | :07:13. | |
no guarantee of work beyond this month. When I started my speciality, | :07:13. | :07:23. | |
I thought I would have established work, a permanent job in public | :07:23. | :07:30. | |
health. Quite well paid. But I think this is a thing of the past. | :07:30. | :07:33. | |
Analysts say austerity is hurting the young are the most. | :07:33. | :07:39. | |
government wants to reduce public sectors. They need less public | :07:39. | :07:49. | |
:07:49. | :07:50. | ||
workers. They have two ways to do that, they can lay off existing | :07:50. | :07:58. | |
people, or they cannot contract to new people. The frost at -- | :07:58. | :08:02. | |
frustrations spilled over last week. There is likely to be more of this | :08:02. | :08:07. | |
to come. You can find out more about Spain's | :08:07. | :08:11. | |
young public sector workers and useful tips on hunting for work | :08:11. | :08:21. | |
:08:21. | :08:22. | ||
where you are attack website. -- at our. | :08:22. | :08:26. | |
Let's go to Singapore for the latest on China's luxury goods | :08:26. | :08:31. | |
market. This story came to the fore last week. We had luxury good | :08:31. | :08:36. | |
results, they were talking about this day to day as the key for | :08:36. | :08:41. | |
luxury goods retailers. It is key, because it is the autumn | :08:41. | :08:46. | |
festival. That is when the Chinese go out and spend. It may be | :08:46. | :08:50. | |
hampered by this latest anti- government initiative where the | :08:50. | :08:59. | |
government is imposing a frugal working style rule on its employees. | :08:59. | :09:03. | |
This is hoped that it will prevent government employees from spending | :09:03. | :09:08. | |
money on lavish banquets and fancy cars and accepting gifts. Gifts are | :09:08. | :09:11. | |
often returned in exchange for favours, where bribery is | :09:11. | :09:16. | |
widespread. Analysts are say that this initiative could impact the | :09:16. | :09:20. | |
retail luxury market as a quarter of gift-giving has been a source of | :09:20. | :09:24. | |
demand for the world's leading luxury brands. To give you some | :09:24. | :09:28. | |
facts - Chinese consumers spent an estimated $50 billion on luxury | :09:28. | :09:34. | |
goods last year. They are one- quarter of a global market worth | :09:34. | :09:36. | |
about $197 billion. The Chinese are poised to overtake the Americans | :09:36. | :09:41. | |
this year as the biggest buyers of luxury goods in the world. Analysts | :09:41. | :09:45. | |
say 20% of the luxury goods Chinese people they are for gifts. Gifts | :09:45. | :09:52. | |
are often used to grease the wheels, the wheels of relationships that | :09:52. | :09:59. | |
help with jobs and promotions. The market some mixed, which is | :09:59. | :10:05. | |
good considering the news we have had out of Asia today. We have had | :10:05. | :10:08. | |
an influential survey out of Japan to show how manufacturers are doing | :10:08. | :10:13. | |
- it's very pessimistic. Chinese data is showing contraction as well | :10:13. | :10:16. |