07/02/2012

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:00:04. > :00:14.Those I've latest headlines. The wedding between the digger and the

:00:14. > :00:17.

:00:17. > :00:22.dealer. Now it is time for World This is World Business Report. Here

:00:22. > :00:27.are the headlines: Markets prepare for a mega-merger that could change

:00:27. > :00:30.the face of the mining industry. With a digger and a dealer said to

:00:30. > :00:36.marry. To have raised's largest labour

:00:36. > :00:40.unions find to go on strike as politicians of for a deal on the

:00:40. > :00:50.next bailout. Australia's central bank keeps

:00:50. > :00:54.

:00:54. > :00:58.interest rates unchanged, a surprise for many.

:00:58. > :01:04.Traders are expecting details of a planned mega-merger in the mining

:01:04. > :01:11.industry. Strata is set to announce details of and $80 billion of steel

:01:11. > :01:19.with a metals trading group. It could be one of the biggest mining

:01:19. > :01:26.industries in the world. To get there, they produce 1.2 5

:01:26. > :01:30.million tonnes of copper and 1.5 million tonnes of zinc every year.

:01:30. > :01:37.They are forecast to stay high well into the future. They are ensuring

:01:37. > :01:44.for themselves a powerful social supply. They have a very large

:01:44. > :01:49.group of clients. This puts them na Uni kitchen - and position in

:01:49. > :01:52.controlling the supply chain. they were to merge, the combined

:01:52. > :01:59.company would have a market capitalisation of around $100

:01:59. > :02:06.billion. It could be one of the world's largest mining concerns.

:02:06. > :02:10.More importantly it combines a company that surprises in minerals

:02:10. > :02:19.extraction with one and that specialises in the buying and

:02:19. > :02:29.trading of battles. -- metals. The people will be looking at this and

:02:29. > :02:30.

:02:30. > :02:34.wondering if we should focus all of our markets. It also parse

:02:34. > :02:40.companies in terms of market capitalisation. It'll be

:02:40. > :02:44.interesting to see how companies respond. This is a merger of two

:02:45. > :02:51.very different companies. One or Marks up production by forcing down

:02:51. > :02:59.costs. The others get some market to market across the world. How

:02:59. > :03:03.will these to combine their operations?

:03:03. > :03:08.Patience is wearing thin among Europe's leaders with Greece's

:03:08. > :03:13.tends to secure a bailout. The deadline has been extended to today.

:03:13. > :03:18.There is widespread a strike action as two of Greece's largest labour

:03:18. > :03:22.unions have called on workers to protest. The Prime Minister needs

:03:22. > :03:28.the backing of his coalition government for painful austerity

:03:28. > :03:33.plans. 15,000 public-sector jobs have already been agreed. Minimum

:03:34. > :03:43.wage is still proving difficult. Cost cuts demanded by international

:03:44. > :03:48.

:03:48. > :03:55.creditors in exchange for 130 billion euros. The devil is in the

:03:55. > :04:02.detail. We already mentioned the tip of the iceberg. No conclusion.

:04:02. > :04:12.Time is of the essence. Indeed. We have this massive bond, 14.5

:04:12. > :04:16.billion euros. That is not focusing minds enough. We all thought we

:04:16. > :04:21.have this deadline from yesterday. It has disappeared. We have

:04:21. > :04:26.possibly a deadline for today. A good friend of mine said that the

:04:26. > :04:34.joy of a grid deadline is that if you can muster up the energy naked,

:04:34. > :04:40.otherwise do not worry about it. While the coalition government by

:04:41. > :04:46.talking in Athens, we have Angela Merkel and Nicola Sarkozy talking

:04:46. > :04:51.in Paris. This fund has emerged since then. It is in the Financial

:04:51. > :04:56.Times of some sort of a middle way of dealing with Athens that

:04:56. > :05:04.protects bondholders that keeps the pressure on the Greek government.

:05:04. > :05:07.It looks like the lenders to the government will be protected. It is

:05:07. > :05:13.almost an acknowledgement that the Greek government cannot be trusted

:05:13. > :05:22.if you hand over money. Money gets put in an account with the Greek

:05:22. > :05:26.government that they can't access. The lenders will get paid back.

:05:26. > :05:33.That is an acknowledgement that degree government cannot be trusted

:05:33. > :05:41.if and they have to protect the lenders -- the Greek government. It

:05:41. > :05:47.is an acknowledgement that this deal will not be enough for Greece.

:05:47. > :05:53.We will see if it comes out. also have a discussion between

:05:53. > :05:58.private bondholders and degrade government. -- of the Greek

:05:58. > :06:04.government. This is the important question. Greece's debt needs to be

:06:04. > :06:11.cut to a sustainable level. The only plan they have on the table is

:06:12. > :06:17.for bondholders to voluntary except a write down. We have no deal on

:06:17. > :06:25.that. We do not know how many bondholders will voluntarily except.

:06:25. > :06:30.It is only half of what we thought. There are so many things up in the

:06:30. > :06:35.air. We are still waiting for all these decisions. Financial markets

:06:35. > :06:44.have rallied since the beginning of the year. They are just starting to

:06:44. > :06:51.worry that Greece may end up in it a fault. We will watch this space.

:06:51. > :06:59.Talking through some of the other stories. Results from BP. That is

:06:59. > :07:07.expected in a few hours. They're hoping for a profit increase. But

:07:07. > :07:14.profits have been hit by low production models.

:07:14. > :07:19.UBS report earnings today. Less revenue was made for more

:07:19. > :07:23.profitable but risky operations after a rogue trader cost the bank

:07:23. > :07:26.$2 billion. Toyota will show it we shall its

:07:26. > :07:33.results. Third-quarter earnings are likely to have been hit by a

:07:33. > :07:38.stronger yen and reason floods in Thailand. -- recent. It was

:07:38. > :07:41.increasing production to make a production for the Japanese quake.

:07:41. > :07:48.The Australia's central bank has surprised.

:07:48. > :07:55.It has kept interest rates on hold. I understand most were expecting a

:07:55. > :08:00.rate cut. Absolutely. It caught the financial

:08:00. > :08:07.markets off-guard. Stocks wiped off their gains. The Australian dollar

:08:07. > :08:16.jumped to a six-month high. The Reserve Bank said that global

:08:16. > :08:23.conditions have unbalanced. Reds have been kept on hold for now. --

:08:23. > :08:28.rates. The bank was expecting that rates would be cut. This was due to

:08:28. > :08:38.data that showed a surprise drop in retail sales in December and the

:08:38. > :08:38.

:08:38. > :08:42.final quarter. The Reserve Bank cut it by a point twice -- to 0.25 %.

:08:42. > :08:48.If Greece fails to close the new bailout deal and is will pressure

:08:48. > :08:53.the Reserve Bank to cut the cost of borrowing at the next meeting.

:08:53. > :09:03.I have a story about something you and I can afford to buy. A

:09:03. > :09:04.

:09:05. > :09:09.Mitsubishi plant up for sale for 1 euros. 1 euros, absolutely. It is a

:09:09. > :09:15.catch and a condition. President of the severe she said it

:09:15. > :09:22.would only unloaded its Netherlands factory for 1 euros if the buyer is

:09:22. > :09:29.prepared now to keep employ in its 1,500 workers. You and I cannot

:09:29. > :09:35.afford that. Japan's fourth-largest manufacturer would stop making cars

:09:36. > :09:41.at its plant by the end of the year. Effectively that ends its sole

:09:41. > :09:48.European manufacturing operation. Mitsubishi blamed a difficult