:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson
:00:08. > :00:10.As the biggest mining conference in the world gets
:00:11. > :00:13.underway today in South Africa - the big players are there -
:00:14. > :00:16.what will they decide at this critical time?
:00:17. > :00:34.Live from London, that's our top story on Tuesday 9th February.
:00:35. > :00:36.Digging deeper - leaders from the world's top mining
:00:37. > :00:38.companies gather in South Africa as their industry faces its biggest
:00:39. > :00:45.Also in the programme, more market turmoil as jitters
:00:46. > :00:49.about global economic growth batters Japanese stock markets.
:00:50. > :00:53.Investors across Europe are on alert - we'll make sense of the turmoil
:00:54. > :00:58.connecting with our teams in Asia and on Wall Street.
:00:59. > :01:01.And there's been another big selloff on global markets -
:01:02. > :01:04.we'll get the expert view on all you need to know.
:01:05. > :01:06.And we'll be getting the inside track on one African
:01:07. > :01:12.company that's riding the commodities rollercoaster
:01:13. > :01:20.and finding fertile ground to grow a business.
:01:21. > :01:25.And as the UAE appointed its First Minister of happiness, we want to
:01:26. > :01:28.know what other government jobs should be created. What do you want
:01:29. > :01:31.to be a minister of? Let us know. We're starting with commodities
:01:32. > :01:42.today as the global It's down to a slowing world
:01:43. > :01:47.economy, not least China, where demand for
:01:48. > :01:50.commodities is falling. As the biggest mining conference
:01:51. > :01:55.in the world gets underway in South Africa they're assessing
:01:56. > :02:01.the jobs cuts and falling You can see here just how
:02:02. > :02:06.the price of copper, gold and platinum all fared
:02:07. > :02:14.in the last 12 month. The industry has had
:02:15. > :02:18.to dramatically cut costs. South Africa - the world's largest
:02:19. > :02:21.platinum and manganese producer - could lose as many 32,000 jobs,
:02:22. > :02:23.according to the country's mining Not welcome news when
:02:24. > :02:26.the unemployment rate And mining firms have had
:02:27. > :02:32.to make huge write downs. South32, the mining group spun
:02:33. > :02:35.out of BHP Billiton, plans to write down $1.7 billion
:02:36. > :02:39.on the value of its assets everywhere from Australia
:02:40. > :02:48.to South Africa and Brazil. And it's also had a knock-on
:02:49. > :02:50.effect on currencies. As commodity prices slid in 2015,
:02:51. > :02:53.so did the currencies of most of the commodity
:02:54. > :02:55.producing countries. Take Brazil's Real, down 33%
:02:56. > :02:58.and the South African Rand, But one mining executive says
:02:59. > :03:18.there are opportunities to be had. Like everything in this modern
:03:19. > :03:22.world, there is always opportunities now to reposition, consolidates.
:03:23. > :03:25.These are times when new companies emerge, a new bunch of
:03:26. > :03:31.entrepreneurs, people with different ideas. That is the marvel of
:03:32. > :03:37.capitalism, when it is broke, there is always somebody who will come and
:03:38. > :03:38.fix it. That was Mark Bristow, the chief executive of one mining
:03:39. > :03:39.company. Neil Dwane, a mining analyst
:03:40. > :03:49.from at Allianz Global Investors, Nice to see you. Mark has reason to
:03:50. > :03:56.be cheerful, his company is doing very well. Does he have a point, in
:03:57. > :04:01.this type of environment, that is how capitalism is? There are great
:04:02. > :04:05.opportunities to be had? Yes, and I think because he is in the gold
:04:06. > :04:10.sector and there is little additional supply, he is in a unique
:04:11. > :04:15.position. If you are in the iron, copper or coal markets, like most of
:04:16. > :04:20.South Africa, you are computing in a global environment, your currency is
:04:21. > :04:23.very important to the competitiveness of your product. He
:04:24. > :04:30.is kind of saying, these are not my problems. We would expect the strong
:04:31. > :04:35.to get stronger. He is the boss of Arundel mining, he has been on this
:04:36. > :04:40.company many times. South Africa is in a particularly difficult session
:04:41. > :04:46.and in Cape Town, where the mining embargo is happening at the moment,
:04:47. > :04:49.it is very much on government minds that they get the right sentiment
:04:50. > :04:54.and the right deals during the conference? What we have seen in 20
:04:55. > :04:58.years has been a global boom in mining, people have not had to worry
:04:59. > :05:00.about making themselves attract because they wanted to supply China
:05:01. > :05:05.and the rest of the world with resources. Now the world has
:05:06. > :05:09.changed, it has become competitive. Many of the companies and many
:05:10. > :05:17.people like Mark Bristow, who are investing, with thing, what would
:05:18. > :05:20.Brazil or Australia offer us? They had to find the right balance
:05:21. > :05:26.between social stability and employment and making their economy
:05:27. > :05:29.attract for inward investment. I discuss job losses, the cuts in
:05:30. > :05:34.investment and the effect on mining firms. Will there be much sympathy
:05:35. > :05:39.for mining firms? They have had it so good for so long, we have seen
:05:40. > :05:45.record prices of most commodities in the last decade. You might say they
:05:46. > :05:49.should put rain away -- money away for a rainy day? Most companies have
:05:50. > :05:56.been well resourced, but the challenges up until 18 months ago
:05:57. > :06:00.were, of course, with the difficulties everybody wanted their
:06:01. > :06:04.share of the pie, the government, employees and shareholders all
:06:05. > :06:09.wanted it. But it now transpires that was the top for the industry
:06:10. > :06:14.and there is not enough money to go around. Capitalism in theory has a
:06:15. > :06:18.destructive as well as a creative side, when you build assets lasting
:06:19. > :06:22.25 or 30 years you can change your mind once you have made it, you are
:06:23. > :06:25.stuck with it for the disabled future.
:06:26. > :06:34.It is long-term investment. Thank you so much for coming in and giving
:06:35. > :06:36.as your opinions. We have a team in Cape Town, so when we hear anything
:06:37. > :06:38.more, we will tell you. Global markets have fallen
:06:39. > :06:41.again on persistent fears In Japan the main market -
:06:42. > :06:45.the Nikkei 225 - was down Shares in Australia
:06:46. > :06:48.are also down nearly 3%. It follows heavy losses
:06:49. > :06:50.on Wall Street and in Google's chief executive
:06:51. > :06:52.Sundar Pichai has become the best Last year, he earned stock
:06:53. > :07:01.options worth $199 million, taking his personal stake
:07:02. > :07:05.in the company to $650 million. Mr Pichai took the position as chief
:07:06. > :07:08.exec as part of the company's A public inquiry into fracking
:07:09. > :07:13.in the North West of England opens today after Lancashire Council
:07:14. > :07:15.rejected proposals by energy firm Cuadrilla to drill for shale gas
:07:16. > :07:22.at two sites in the county. But with oil prices falling,
:07:23. > :07:24.experts say the venture won't be In the US, many fracking companies
:07:25. > :07:29.are still struggling to make money with oil prices
:07:30. > :07:51.at just $35 a barrel. Lots of stories on Bbc Business Life
:07:52. > :07:55.online. This is a bit more detail on how things went in Japan. A very
:07:56. > :08:00.unusual day for market in Asia, most of them closed for the lunar New
:08:01. > :08:10.Year break. Only Japan and Australia were trading, they make a close down
:08:11. > :08:16.5.4% lower. Among the big losers were the big financial companies.
:08:17. > :08:20.But also clashes in Hong Kong as part of the lunar New Year
:08:21. > :08:25.celebrations, some local vendors decided to sell goods and did not go
:08:26. > :08:32.down well. As our Hong Kong corresponded points
:08:33. > :08:35.out, normally they would turn a blind eye to illegal traders in the
:08:36. > :08:40.streets, but this year they are getting tough and have cracked down,
:08:41. > :08:44.which sparked protests. And just a reminder, we want to know
:08:45. > :08:48.whether you have any thoughts about what government ministers should be
:08:49. > :08:55.created after the United Arab Emirates -- Emirate created a
:08:56. > :09:01.Minister for happiness. One said that he wanted a Minister for
:09:02. > :09:08.slashing and burning this size of government! Ministry without
:09:09. > :09:12.portfolio! Keep your comment is... Comments coming in at BBCBizLive.
:09:13. > :09:21.Our team in Singapore is looking at the twists and turns in Asia. Tim,
:09:22. > :09:27.tell us more about what went on in Japan? Virtually no share was
:09:28. > :09:30.unaffected as the benchmark Nikkei plummeted. It reflects broad
:09:31. > :09:35.concerns about the local economy, banks and rock ridges copied a
:09:36. > :09:41.severe beating. It also has to do with the yen, which investors tends
:09:42. > :09:44.to buy as a safe haven in times of uncertainty, today it went to its
:09:45. > :09:51.highest level since the -- against the dollar since 2014. Japanese
:09:52. > :09:55.government bonds were affected, yields sinking below zero for the
:09:56. > :10:00.first time. Much of the region is closed for Chinese New Year, but the
:10:01. > :10:05.indexes that are open tended to follow Japan peers lead and also
:10:06. > :10:16.fell, Australia, Thailand and the Philippines all closing down today.
:10:17. > :10:28.The Hang Seng is closed, the Nikkei file.
:10:29. > :10:32.-- fell. Those persistent worries in Europe about the global slowdown are
:10:33. > :10:36.affecting markets. A lot of debate about whether it is founded in any
:10:37. > :10:41.reality or if it is just the usual knee jerk reaction to any little bit
:10:42. > :10:46.of information? We will assess that in a moment with our guest Jeremy,
:10:47. > :10:47.that first what will make headlines in the United States?
:10:48. > :10:51.Let's get the latest from the US markets with Michelle Fleury.
:10:52. > :10:56.Wall Street will be jittery on Tuesday morning after the near
:10:57. > :11:03.router which took place on Monday, at one point the Dow Jones was down
:11:04. > :11:06.almost 401 points. Will betide any company that reports disappointing
:11:07. > :11:11.earnings, and there are lots of companies to look out for this
:11:12. > :11:15.Tuesday, among them Coca-Cola, which reports its full-year profits.
:11:16. > :11:20.Strong sales in the US are expected, but so is some weakness overseas
:11:21. > :11:23.caused by, you guessed it, the strong US dollar, the culprit that
:11:24. > :11:28.keeps coming back to haunt American companies. What Disney will get its
:11:29. > :11:32.first chance to feel the force in its accounts, I am talking Star
:11:33. > :11:35.Wars. Its first-quarter revenues are expected to get a boost from the
:11:36. > :11:40.latest Star Wars film, which took record amounts up the time of its
:11:41. > :11:42.release. The force continues to awaken!
:11:43. > :11:49.Joining us is Jeremy Cook, chief economist at World First.
:11:50. > :11:55.Jeremy, what a 24, 48-hour with yet again? A really, really bad start to
:11:56. > :11:59.the week. We thought with the lunar New Year, China being closed and a
:12:00. > :12:05.very good jobs number at the US on Friday that things on Monday morning
:12:06. > :12:09.would be quieter. After about an hour it just continue to get worse
:12:10. > :12:15.over the course of the day. The year of the monkey, I was talking to a
:12:16. > :12:19.colleague in Singapore, he said people are saying that the year of
:12:20. > :12:23.the monkey means volatility, lots of bugs and downs, twists and turns, it
:12:24. > :12:29.is happening? What is interesting yesterday was that the focus was
:12:30. > :12:36.firmly on the banks, particularly on Deutsche Bank. What is going on?
:12:37. > :12:40.There are lots of hallmarks of 2008? European banks were in focus,
:12:41. > :12:43.Deutsche Bank were right in the cross hairs. Investors might be,
:12:44. > :12:48.rightly or wrongly, believing they might not be able to repay some of
:12:49. > :12:52.their more volatile that is. We know the European banks in the UK have
:12:53. > :12:56.been hit quite hard from a litigation point of view over the
:12:57. > :12:59.last couple of years, income is also quite low at the moment, people are
:13:00. > :13:05.looking at the balance sheet is and going, can they stay in this? Hence
:13:06. > :13:07.the fears yesterday. Jeremy will look at some of the stories in about
:13:08. > :13:08.five minutes. Fertile ground to grow a business -
:13:09. > :13:12.African mining giant Cominco makes its money mining phosphates
:13:13. > :13:15.used around the world as fertiliser. We'll ask how easy it is to do
:13:16. > :13:17.business in Africa - and how technology is changing
:13:18. > :13:20.the way they operate. You're with Business
:13:21. > :13:28.Live from BBC News. Let's focus on the UK housing
:13:29. > :13:31.market. Housebuilder Redrow says profits
:13:32. > :13:33.jumped 14% in the last six Chairman Steve Morgan says
:13:34. > :13:37.it was an outstanding six months. Joe Lynam is following
:13:38. > :13:48.this story for us. Joe, we are all struggling with
:13:49. > :13:57.rising house prices but, once again, good news for those who build them?
:13:58. > :14:01.Pretty true. They are one of the big house-builders in the UK, Redrow,
:14:02. > :14:06.they had a record set of profits for the financial quarter we have just
:14:07. > :14:11.had, around ?104 million in pre-tax profits. They said they completed
:14:12. > :14:15.2178 homes, the completions are really important because that
:14:16. > :14:20.indicate how many homes they are able to build. In written it is a
:14:21. > :14:23.lot to do with planning permission, getting the land, getting it
:14:24. > :14:28.approved and developing a -- in Britain it is a lot to do with. The
:14:29. > :14:33.boss says he faces the problem of skills, getting the brickies,
:14:34. > :14:37.plumbers and construction experts on site to build these homes, as well
:14:38. > :14:40.as getting the land approved. Then there is the issue of affordability.
:14:41. > :14:44.There is a report from the Lib Dems political party claiming that the
:14:45. > :14:51.average price of a property in the UK by 2032, and we will all be a
:14:52. > :14:56.good bit older, will be over ?1 million. It is around quarter of ?1
:14:57. > :15:00.million now. It gives you an idea of how expensive properties will be. I
:15:01. > :15:04.spoke to chairman Steve Morgan today, he says the demand is huge
:15:05. > :15:08.and he can see the affordability issue coming into play for his
:15:09. > :15:12.company yet. This chart shows you that the company has done pretty
:15:13. > :15:13.well over the last year, but so have many home-builders as the helped to
:15:14. > :15:27.buy scheme comes into play. So you might think we are headed for
:15:28. > :15:31.a recession. The signs certainly suggest in some respects that we
:15:32. > :15:34.could be, but Goldman Sachs, the US investment bank, says no. There is a
:15:35. > :15:40.near zero risk of UK recession. This is a story in The Telegraph this
:15:41. > :15:45.morning. And it says, "Well, the stock market and credit tremors are
:15:46. > :15:48.sending off false signals." The Goldman Sachs report talks about the
:15:49. > :15:52.fact that the UK economy in the developed world at the moment is one
:15:53. > :15:57.of the strongest economies in terms of the fundamentals and how the
:15:58. > :15:58.economy is performing. So some positive news about the UK economy
:15:59. > :16:03.from Goldman Sachs. Global economic jitters fuels
:16:04. > :16:16.the worldwide sell-off. We look at the damage being wreaked
:16:17. > :16:24.on the mining industry. Now, we've talked already
:16:25. > :16:27.in the programme about the slump The African commodities giant,
:16:28. > :16:35.Cominco, is making money from mining And it's in demand from
:16:36. > :16:44.the agricultural industry, but can only be mined in the US,
:16:45. > :16:47.Africa and the Middle East. But with supplies in the US
:16:48. > :16:50.dwindling, and the Middle East frequently rocked by political
:16:51. > :16:51.tensions and security issues, Africa is the main
:16:52. > :16:53.focus for the firm. He's the Chief Executive
:16:54. > :16:57.for the African Company, Cominco that operates
:16:58. > :16:59.in the Republic of the Congo which neighbours the
:17:00. > :17:15.Democratic Republic of Congo. It is important we get that bit of
:17:16. > :17:18.ge geography right. You are from Australia slam and this particular
:17:19. > :17:22.company has been around for six years and it is specific to what
:17:23. > :17:26.you're doing in that part of Africa, but your history is mining in
:17:27. > :17:30.Australia, isn't it? Yes, I've built five mines in Australia and saw that
:17:31. > :17:35.the opportunities in Africa were much bigger and greater. So just
:17:36. > :17:40.tell us about your, how you dot to this point where you are now. I
:17:41. > :17:45.understand you were given a map and from that map, you kind of figured
:17:46. > :17:49.out there might be this massive phosphate opportunity... You're
:17:50. > :17:54.right, Sally. Talk us through it? Well, I was shown a hand drawn map
:17:55. > :17:59.six years which had a couple of dots on it where phosnate was known to
:18:00. > :18:02.occur. I thought if this is one large deposit under soil cover, it
:18:03. > :18:06.could be 50 kilometres long. The chances of that doing the case, are
:18:07. > :18:14.fairly slim, but it turns out to be true. We have used some amazing
:18:15. > :18:18.technology, built big databases using this software and able to
:18:19. > :18:23.quickly and cost effectively prove up the largest deposit of phosphate
:18:24. > :18:29.in the world. So in a six year period, since getting that hand
:18:30. > :18:32.drawn map, you have invested $50 million already? Yes. And now you
:18:33. > :18:36.are at the point where you can start digging up the stuff? Yes, that 50
:18:37. > :18:39.million, it sounds like a lot of money and it is, but for what we
:18:40. > :18:43.have got for it, it has been cost effective because we have done so
:18:44. > :18:46.much hi-tech work and this is the key for modern exploration and mine
:18:47. > :18:54.development now. It is big science and we've used this software to pull
:18:55. > :19:01.together satellite data, remote sensing and we have done aerial
:19:02. > :19:09.surveys which culminated in a precise geolocation. The first drill
:19:10. > :19:13.hold hit deposits and we have got the biggest deposit in the world. We
:19:14. > :19:18.look at pictures and we think of these huge mines with big mining
:19:19. > :19:25.machinery. That's changing and you're able to be more clever about
:19:26. > :19:32.how you do it. A long time ago, minerals occurred on the surface.
:19:33. > :19:35.These days, all major, there is few new discoveries of minerals because
:19:36. > :19:41.they are concealed by soil cover. You need to narrow the search using
:19:42. > :19:47.technology and if you try to find a worm under the field by sticking a
:19:48. > :19:55.knitting needle in the soil hoping it could come up covered in blood,
:19:56. > :20:01.you could wait a lifetime. We use imagery to look for geological
:20:02. > :20:05.structures and when we fin those we do surveys, the geophysical means
:20:06. > :20:08.can narrow the search down so by the time you come to do the expensive
:20:09. > :20:13.groundwork, you already know what you're looking for. So you've got,
:20:14. > :20:15.you know it's there, you've got the investment, you're a private company
:20:16. > :20:22.getting on with this, but you have to work with the Government, don't
:20:23. > :20:26.you? And you're going to create a village, becauser' going to hire
:20:27. > :20:38.1,000 people from the region, some of whom have never had That's
:20:39. > :21:26.On tomorrow's programme, Arnaud Vaissie will be here.
:21:27. > :21:28.He's the co-founder, chairman and Chief Executive
:21:29. > :21:31.of International SOS, the world's largest medical
:21:32. > :21:36.It provides medical and security services to staff working overseas
:21:37. > :21:40.He'll give us his take on the changing political
:21:41. > :21:41.and security landscape around the world.
:21:42. > :21:44.The travel group TUI says Turkish bookings have slump by 40%
:21:45. > :21:46.for this summer after the terror attacks in Turkey,
:21:47. > :21:57.Travellers are instead switching to less risky destinations
:21:58. > :22:01.Tui normally reports a loss in the winter months and makes most
:22:02. > :22:04.of its money in the summer, but in the last three months of last
:22:05. > :22:06.year it actually saw growth, as travel expert
:22:07. > :22:11.Egypt, and you could say the same about Turkey, a number of these
:22:12. > :22:17.destinations that have really come to prominence, a lot of investment
:22:18. > :22:24.into good quality hotel stock. So, they are a cheap destination for
:22:25. > :22:31.winter sun and a company like Tui need those destinations. For those
:22:32. > :22:34.destinations to be shutdown like Tunisia and Egypt or to suffer a
:22:35. > :22:36.drop of the kind of scale that we have seen in Turkey, 40% down,
:22:37. > :22:46.that's a huge drop. Let's take a quick look
:22:47. > :22:51.at the stories making business The Wall Street Journal looks
:22:52. > :22:55.at tech firms like Apple, Alphabet current push on technology
:22:56. > :22:59.that turns phones into digital keys. The National reports
:23:00. > :23:04.on the latest government shake up by Sheikh Mohammed bin Rashid,
:23:05. > :23:07.the ruler of Dubai, to prepare UAE It includes a Minister for
:23:08. > :23:13.Happiness. The Guardian quotes the UK's
:23:14. > :23:15.Transport secretary saying new runway will be built
:23:16. > :23:18.at Heathrow or Gatwick by 2030. The Telegraph reports
:23:19. > :23:20.Goldman Sachs' latest assessment of the UK economy saying the country
:23:21. > :23:41.is unlikely to face a recession Jeremy is here. A Ministry of
:23:42. > :23:48.Happiness? A fun place to work. Bean bags and sweets for everyone. It
:23:49. > :23:56.sounds Harry Potter. The Ministry of Happiness and minister of happiness.
:23:57. > :24:01.They have pioneered something talked gross national happiness as a way of
:24:02. > :24:06.seeing how the economy was looking and maybe this is a Harkining back
:24:07. > :24:15.to a more sentiment driven economy. We were asking you for your comments
:24:16. > :24:19.and you were suggesting a Minister for Speech. I was thinking about
:24:20. > :24:27.that, but I wasn't going to say it out loud. Now we have been outed.
:24:28. > :24:32.Wall Street Journal, tech world pushed towards a future without
:24:33. > :24:37.passwords. This would be fantastic. It drives me around the twist. We
:24:38. > :24:43.have to change ours every three months. It has to be lower case and
:24:44. > :24:46.a number. It is all the retailers, you maybe using, and all the clubs
:24:47. > :24:51.your kids are in and all the different things. It goes on and on.
:24:52. > :24:55.It happens as a kind of waterfall when you change devices, if you get
:24:56. > :25:00.a new phone, you get a new iPad and you have got to look into your
:25:01. > :25:06.Twitter, your Facebook, your John Lewis account, your Sainsbury's
:25:07. > :25:09.account. How will it work? Some phones, the newest iPhone, my new
:25:10. > :25:16.Sony, it is about the fingerprint. Does it work though? It does. Mine
:25:17. > :25:21.doesn't work. I have got a smart device that's supposed to recognise
:25:22. > :25:27.by thumb and it doesn't. What's wrong with your thumb? I do too much
:25:28. > :25:32.washing up, I think! A new runway, where will it be? It will be built
:25:33. > :25:37.by 2030, but that's so late. We are falling behind in the ranking of
:25:38. > :25:41.super powers. There was an interesting article over the weekend
:25:42. > :25:45.about how Istanbul is likely to become the new Dubai as far as a
:25:46. > :25:49.hub. We know how many flights now go through Dubai if they are going into
:25:50. > :25:53.Asia. The UK continues to sit there and not build then we're not going
:25:54. > :25:56.to be challenging that any time soon. Injury ram yu, thank you for
:25:57. > :25:58.being on the show. Good to have you with us. That's it from us. We will
:25:59. > :26:19.see you soon. Bye-bye. Hello there. Good morning. In those
:26:20. > :26:20.areas are that clearing up after Storm Imogen yesterday, today should