07/02/2012 World Business Report


07/02/2012

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Those I've latest headlines. The wedding between the digger and the

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:00:14.:00:17.

dealer. Now it is time for World This is World Business Report. Here

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are the headlines: Markets prepare for a mega-merger that could change

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the face of the mining industry. With a digger and a dealer said to

:00:27.:00:30.

marry. To have raised's largest labour

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unions find to go on strike as politicians of for a deal on the

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next bailout. Australia's central bank keeps

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:00:50.:00:54.

interest rates unchanged, a surprise for many.

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Traders are expecting details of a planned mega-merger in the mining

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industry. Strata is set to announce details of and $80 billion of steel

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with a metals trading group. It could be one of the biggest mining

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industries in the world. To get there, they produce 1.2 5

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million tonnes of copper and 1.5 million tonnes of zinc every year.

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They are forecast to stay high well into the future. They are ensuring

:01:30.:01:37.

for themselves a powerful social supply. They have a very large

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group of clients. This puts them na Uni kitchen - and position in

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controlling the supply chain. they were to merge, the combined

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company would have a market capitalisation of around $100

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billion. It could be one of the world's largest mining concerns.

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More importantly it combines a company that surprises in minerals

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extraction with one and that specialises in the buying and

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trading of battles. -- metals. The people will be looking at this and

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wondering if we should focus all of our markets. It also parse

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companies in terms of market capitalisation. It'll be

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interesting to see how companies respond. This is a merger of two

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very different companies. One or Marks up production by forcing down

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costs. The others get some market to market across the world. How

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will these to combine their operations?

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Patience is wearing thin among Europe's leaders with Greece's

:03:03.:03:08.

tends to secure a bailout. The deadline has been extended to today.

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There is widespread a strike action as two of Greece's largest labour

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unions have called on workers to protest. The Prime Minister needs

:03:18.:03:22.

the backing of his coalition government for painful austerity

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plans. 15,000 public-sector jobs have already been agreed. Minimum

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wage is still proving difficult. Cost cuts demanded by international

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creditors in exchange for 130 billion euros. The devil is in the

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detail. We already mentioned the tip of the iceberg. No conclusion.

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Time is of the essence. Indeed. We have this massive bond, 14.5

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billion euros. That is not focusing minds enough. We all thought we

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have this deadline from yesterday. It has disappeared. We have

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possibly a deadline for today. A good friend of mine said that the

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joy of a grid deadline is that if you can muster up the energy naked,

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otherwise do not worry about it. While the coalition government by

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talking in Athens, we have Angela Merkel and Nicola Sarkozy talking

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in Paris. This fund has emerged since then. It is in the Financial

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Times of some sort of a middle way of dealing with Athens that

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protects bondholders that keeps the pressure on the Greek government.

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It looks like the lenders to the government will be protected. It is

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almost an acknowledgement that the Greek government cannot be trusted

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if you hand over money. Money gets put in an account with the Greek

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government that they can't access. The lenders will get paid back.

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That is an acknowledgement that degree government cannot be trusted

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if and they have to protect the lenders -- the Greek government. It

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is an acknowledgement that this deal will not be enough for Greece.

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We will see if it comes out. also have a discussion between

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private bondholders and degrade government. -- of the Greek

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government. This is the important question. Greece's debt needs to be

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cut to a sustainable level. The only plan they have on the table is

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for bondholders to voluntary except a write down. We have no deal on

:06:12.:06:17.

that. We do not know how many bondholders will voluntarily except.

:06:17.:06:25.

It is only half of what we thought. There are so many things up in the

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air. We are still waiting for all these decisions. Financial markets

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have rallied since the beginning of the year. They are just starting to

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worry that Greece may end up in it a fault. We will watch this space.

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Talking through some of the other stories. Results from BP. That is

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expected in a few hours. They're hoping for a profit increase. But

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profits have been hit by low production models.

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UBS report earnings today. Less revenue was made for more

:07:14.:07:19.

profitable but risky operations after a rogue trader cost the bank

:07:19.:07:23.

$2 billion. Toyota will show it we shall its

:07:23.:07:26.

results. Third-quarter earnings are likely to have been hit by a

:07:26.:07:33.

stronger yen and reason floods in Thailand. -- recent. It was

:07:33.:07:38.

increasing production to make a production for the Japanese quake.

:07:38.:07:41.

The Australia's central bank has surprised.

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It has kept interest rates on hold. I understand most were expecting a

:07:48.:07:55.

rate cut. Absolutely. It caught the financial

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markets off-guard. Stocks wiped off their gains. The Australian dollar

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jumped to a six-month high. The Reserve Bank said that global

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conditions have unbalanced. Reds have been kept on hold for now. --

:08:16.:08:23.

rates. The bank was expecting that rates would be cut. This was due to

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data that showed a surprise drop in retail sales in December and the

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final quarter. The Reserve Bank cut it by a point twice -- to 0.25 %.

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If Greece fails to close the new bailout deal and is will pressure

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the Reserve Bank to cut the cost of borrowing at the next meeting.

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I have a story about something you and I can afford to buy. A

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Mitsubishi plant up for sale for 1 euros. 1 euros, absolutely. It is a

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catch and a condition. President of the severe she said it

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would only unloaded its Netherlands factory for 1 euros if the buyer is

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prepared now to keep employ in its 1,500 workers. You and I cannot

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afford that. Japan's fourth-largest manufacturer would stop making cars

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at its plant by the end of the year. Effectively that ends its sole

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European manufacturing operation. Mitsubishi blamed a difficult

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