gina rinehart brought even more supply onto the market. he keeps calling $40 fantasyland.fantasyland? i think $30 comes from an anchoring bias, really. but if you consider gina rinehart's operation, that production has been sold under long-term agreement. that is not going to impact the stock market. is the were referring to higher cost producers turning to domestic production. the funding behind those names, in the good years the companies are able to generate significant cash resources. 2016 that youin will see the elimination of those cash resources. it won't happen overnight. it's a long-term, drawnout process that will take time. you will see a lower for longer iron or price. ultimately those cash reserves will be burned up, and it will be the last man standing or the strongest man standing. it was wells fargo yesterday talking about the energy sector, a similar story. stay with us. we have plenty more to get to. up next, $100 crude. a resignation from chancellor merkel. 2016.ssimists guide to ♪ guy: good morning and welcome back to "on the move." 41 minutes into the

gina rinehart admitted that no one was thrilled with the price.he conceded it was beyond anyone's control. anna: let's bring bob parker back into the conversation, senior adviser at credit suisse. we see the us trillion jobs number out this morning, that currency hinged to the commodity story. thing, when you talk about australia, one to talk about china -- and to some extent the u.s. where there is this switch in economic activity from the manufacturing sector, from the commodity sector. and that is exactly what is happening in australia, in terms of the mining sector. i think the theme over the next year, if not longer, is to be companies deleveragin. and that fits with glencore earlier today, secondly consolidation and cutbacks. job losses in the mining sector, and i think a major cutback incapacity. and that is good to be that cutback incapacity, doesn't matter whether it is energy or mining, it is the only way you're going to see support for prices. manus: we have a story on the bloomberg terminal today. i want to pick up some of the themes o

jonathan: gina rinehart is going into production. 60 million metric tons annually. what do you think? >> she could well be a casualty. she won't take me for saying it, but she is at risk. that is why iron ore prices have suddenly dropped. they are just bringing iron ore into market? jonathan: you and i talked about the industry so much. the miners are cutting the dividends. the energy majors have not. what happens in 2016 to energy? >> i think some of them will have to start looking at whether the dividends are sustainable. maybe they do the age-old trick of moving it to part cash, part shares as a way to pull the wool over people's eyes that this is a dividend cut by another name. if crude oil stays in the $40 range, that will be hurting a lot of the majors. jonathan: just a point out this tuesday morning, one hour and six minutes into the session, anglo american now trading lower by 627%. -- by 6.27%. that is what striking down the ftse. here's what's happening in the rest of the program and what else is on our radar. crude has rebounded slightly after plunging mo

jonathan: final question for you, just appeared gina rinehart, 60 billion tons.context on how big that is. why now? jesse: she has been building this for many years. she's got a family tradition in the iron ore industry. her grandfather pegged the original iron ore tenements in the 1960's. this is the biggest commitment she's made in the industry in her life, a $10 billion project, 60 million tons a year. that's maybe 5% of the seaborne market. it's a significant contributor. guy: are we building the next super cycle in commodities right now? this is a big project that is coming on stream. five years down the road, 10 years down the load - road, these are long cycle projects. michael: if you want to go really long-term, the valuations are there. jonathan: michael metcalf, great to have you with us. thank you very much for giving us your time. in its way from the open in london. we are looking at potential corporate movers. it's all about air france. futures in london, a little bit higher. ♪ jonathan: good morning. welcome back. we are nine minutes ahead of the op