and glencore. coming up on "bloomberg markets." ♪ mark: welcome back to "bloomberg york and live from new london. ."is is "the european close markets closed ever so slightly lower -- betty: i was so wrong. mark: time for the betty: battle of the charts. time for the bloomberg business flash. first time unemployment benefits ms ofd last week, clai 15%. even with the increase, applications are holding to the lowest level in 40 years. and shoppers will be paying with .heir smartphones the retailer will offer these service at its headquarters in arkansas. an international rollout is next year. that could make walmart arrival to apple pay another digital wallet apps. and automakers are required to report to tell the, injury, and warranty repairs. chrysler says it is revising procedures to make sure it is in complaints. you can always get more business news at bloomberg.com. staying on auto news, volkswagen revealing details on its massive issions scandal. the ceo spoke exclusively to hans nichols in ger

-- like glencore?ose companies that have highly levels of leverage, they have to strengthen their balance sheets to accept the reality. should companies like glencore assume the commodity prices have , stay at these levels for the next year. my answer is yes. the mining sector and the energy sector as well. we have not talked about the soft commodity sector. at least for the next two years, current commodity prices stay where we are. i would be surprised if we get more downside. in that environment, the pressure on commodity companies will continue. the only way to survive that is by deleveraging your balance sheet. that is what glencore is doing. manus: is this a huge risk for 2016? there is a huge amount of asset sales globally. if it is not financial engineer product, it is the debt instruments within the commodity companies. it doesn't bond well for 2016. bob: a few caveats. first is the process of bank deleveraging is nearly complete. if we had this conversation in close to2007, we were 28, 30 tim

glencore today has very aggressive cost cuts.e seen miners everything they can to take costs down. i think we are expecting more from glencore today in terms of assets to be cut. there are still a lot of buyers out there. francine: they are talking about possibly putting the agricultural business ipo in that separately. that is a strategic move. why? because to get smaller and can be taken private? because he can focus on the trouble? you don't really cut debt and that is what they need to do. >> that's true. it is a non-source of funding. death it is an odd source of funding. -- it is on all source of funding. on the whole, it is a non-core assets and the need to focus on the main part of the business, which the will generate more revenue. i think they are leaving that to the larger houses and letting a separate monetary focus on that business. francine: in terms of -- i know you don't cover stocks, but anglo has huge exposure to copper. which one is going to perform the worst? is that even have an impact? -- the demandties proj

you cannot ignore glencore, can you?y more coverage, coming up. ♪ francine: central-bank watch. new zealand cuts rates for the fourth time this year. the boe is up next. mining meltdown. balance sheets are bloated because of the commodity rout and glencore cuts that. and carmakers give their first big press conference since the emissions scandal. we will find out more on how the y cheated on diesel emissions. and the argentine outgoing president refused to attend the ceremony, handing power to the president-elect.

glencore has shown the ability to reduce it's debt. it did manage to raise equity. we made that comparison earlier and i think it's got through the last couple of months even though we vn sehaven't seen comy routes pick up. they have a long way to go and this isn't going to be a bullish area for the short material but they have got through the worst of it it seems which a couple of months ago is not what people were expecting. >> i would say his credibility and probably glencore's credibility has been dented because earlier in the year he said regardless of where commodity prices are trading their trading arm will make 2.7 to $3.7 billion. they have reduced that now to 2.4. i think probably on the high end of it so, you know, it's obvious that you can't really buy into all the confidence that glencore always has. >> the trading arm should still be able to from a lower basis it's the issues that we know that they did by becoming more asset heavy and come aing away m pure trading. >> commodities have been the story so far this week. we're looking at close to 6 year lo

>> glencore shares are up, moody's downgraded them today. that doesn't seem to china.t looked very interesting, clearly, the sector is under pressure. prices have slumped. earnings have been eroded. moody's are bearish. conditions in the mining industry will not improve for a prolonged period of time they said today. both companies are coming from back grounds -- different backgrounds. kevin: six caroline: six above junk. >> moody's announcement on the face of it could be quite negative, but commentary from moody's was quite positive was in the chief financial officer could be enough to see them through the short-term. more aggressive as it sale plan. it seems like there owing the right direction. bhb, it is focused on dividends. caroline: glencore may be stable for now, but bhb, must be slightly worried about for they're going to do to protect themselves. however risk is the dividend? >> most analysts believe they will cut this policy, essentially a promise they will keep paying higher dividends every year. that is unsustainable. most people think bhb are going to hav

glencore up by 72% -- glencore off by 72%.see the asset sales and we ask the question -- the real news out of anglo american is not the dividend, it is the target -- guy: for billion dollars from $3 billion previously. they are flooding the market with assets at a time when the commodity, the underlying commodity, is traded low. jonathan: these guys are selling stuff that is easy to sell. stuff asto be selling close to cost as you possibly can. they are getting the good stuff, so this business is not necessarily getting better, it's just -- you can begin to understand the concentration risk. guy: markets are finally over and anglo-american, with what they did with the dividend, really how to count over that. he is conscious of that and i wonder how he handles things today after he suspended the dividend. he didn't want to do it. he saw the pain coming. he called in the summer. it will be rough in the second half but we have to follow-up. jonathan: what investors want to hear is we are taking the pain, we need to understand exa

glencore shares trading higher after debt retux plans. the company outlined an ambitious net target between 18 and $19 billion next year. along side this the mining and trading company plans to cut capex as it grapples with a continued commodity route. share prices up 10% in london trade. that's also helped boost the mining sector more generally and one has to say, susan, that glencore has handled this latest head wind it's faced pretty well. if we rewind just a couple of months, wouldn't think it would have managed to reduce debt targets so significantly. >> yeah, credit default swaps were pricing in a 50% chance of default from glencore. the stock is still down 70%, you know, at one point we were down 75% on the year but is this really good news? because from what i understand yes we're looking at $2 billion in free cash flow but then they try to slash debt, reduce it and they're upping it by $3 billion throughout the next three years but what does it say about the business climate right now? >> the business climate, there's no question

we also your today from glencore.r the theirtime it ipoing agricultural business. it seems a lot of companies are divesting assets and trying to make them and alone. this feels like a crowded space. >> i see what you mean. i would expect the specialty division or the performance remain -- that is probably the one that will have the highest multiple. now, that to some extent, will depend on who is taking over that company. breen has a lot of cachet, dupont has gone up tremendously, largely on his taking over, promising cutting growth. and whatever party takes over will probably be the best situated. the name of synergy, the name of the game, 116,000 employees between the two of them. my quick math is 12,000, 13,000 people are shown the door. how many jobs will be lost? >> also good question. tom: you know the math. how many jobs? >> we haven't sized the number of jobs. we looked at the synergy in terms of dollars. tom: please. largely on top of because cutting programs. , in importantud question, is this good for ameri

glencore, the great corporate story of the day.ill be filling us in on that and we will be going to johannesburg to talk about the chaos and south african markets. onty, i am keeping an eye this. our own battle of the charts. ♪ betty: welcome back to "bloomberg markets." is 11:30 a.m. in new york, but it is 4:30 p.m. in london. let's bring it to mark barton as we are wrapping up the european trading session. we are bouncing back up? mark: bouncing back up, glencore giving a boost to european mining companies. the european close starts right now. --"the european close" starts right now. betty: we will take you to london to johannesburg. mark, kick it off. mark: betty, check it out. .1 percent. [laughter] if we are down, it will be the seventh day. it has barely changed. interestingly, one of the losing stocks in london today -- what is happening in south africa,

you see that again with glencore. people questioning whether or not the equity is worth anything. now we're only starting to see the short sellers. >> you have a list with a couple of names to watch. >> the name we're watching in the u.s. is game core. so we have the holiday shopping period in north america and what we're seeing -- game stop, sorry. game stop. again it's kind of a bricks and more to retailer. if you look at the retailing environment now there's a lot more content being delivered through these games. >> an outerwall you mention at the same. >> very same. it runs kiosk, red box retailing. that used to be quite popular. but now it's come full circle and now we have got content being delivered through mobile networks. so that cuts the loop. swatch group has struggling china sales. we have known about that for awhile now. i'm just curious about why it would be included in that list. because there's so much support coming from the retail and the institutional investor. >> there's about 20% of swatch shop again. it's a massive name. stoxx 600. so not exactly what you do

glencore too. had been suffering, but its aggressive approach to shrinking the industry's biggest debt pile is fueling optimism today. in the past three days, credit default swaps ensuring glencore's debt for five years have been falling. down, casino taking its two-day drop to 15%. down 2% at the moment. this started dropping yesterday after a short seller named this short, as his latest saying it is using financial engineering to mark a sharply deteriorating core business. casino did come back and basically said these allegations were misleading and erroneous. i can tell you that jpmorgan has also come out disagreeing with carson block. still, casino shares trading lower. jonathan: thank you very much. let's talk about the political moves. u.k. prime minister david cameron said his did the change britain's relationship with the european union is gathering momentum. he conceded that the move was unprecedented. >> we are attempting something very difficult, that hasn't been tried before or by anoth

the chairman is a nonexecutive director at glencore.when you see companies like glencore go through such a yearing, $3.7 billion this , momentum is not your friend anymore. will this make it more difficult for you as not been nor when we see market volatility -- as an entrepreneur when we see market volatility? we just finished a roughly $100 million fundraiser, pre peered up425 our competitors, it will be difficult for them to raise money in this market. back anaturally pull little bit and they are less willing to play in perspective markets. we have unique partnership with jefferies. they did a great job for us. we are not seeing growth. we are not seeing inflation. there is no growth in public markets. if people want any kind of return, they have to go to guys like you. kenny: at the end of the day, being a notch of nor like myself -- on to be new or like myself, there's no return like in october nor can get you -- being myself,preneur like there's no return like an entrepreneur can get you. if you find the right ceo and right manage

glencore is the industries single most indebted minor.ard from the ceo saying he never wants to be in this debt situation again. bloomberg news, london. peter we should disclose, is a senior independent nonexecutive director at glencore. coming up, bank of america passes its stretch -- stress test. we will look at what else the bank needs to worry about. a software company goes public. how is it measuring up in week ipo's? and we get the latest will look at investment alternatives. those stories are coming up on bloomberg market. ♪ david: welcome back. stocks are hovering hive of the session. equities are doing what? let me turn it to you. ramy: they're not just near at -- session highs. they are at session highs. earlier, i was told that was the case and it is now pushing even higher. the s&p 500 up by nearly 1%. the dow was up the most by 1.1% and the nasdaq is up by nearly 1% there. the s&p 500, with this move, is now positive. we will see if we can continue on with these games -- these gains. wednesday, on the slide based on falling c

glencore is the industry's cinema's indebted minor.nd we also heard from the ceo who said he never wants to be in this kind of debt situation again. scarlet: we should note that peter grauer, the chairman of bloomberg lp, is a senior independent nonexecutive director of glencore. still ahead, twitter has found a way to lift its advertising audience by half a billion people. we will tell you how. ♪ scarlet: welcome back to bloomberg markets. we have some breaking news of sorts. certainly for marissa mayer and her family because she has just announced on twitter 13 minutes ago that she and her husband gave birth -- or she gave birth -- they welcomed identical to one girls this morning. of course, mercer mayer has a lot of challenges at work at the moment with yahoo! -- marissa mayer has a lot of challenges at work at the moment with yahoo! selling off its core business. that is something we will continue to monitor as time goes on. but congratulations to marissa mayer. let's look to twitter. it is try to prove to wall street that it's bu

it has been vying for that spot with glencore.to bhp an eye on bhp billiton because a brazilian prosecutor has filed a civil action against them over the fatal dam collapse at the mine last month. jon: let's get to our morning must-read. the chief economist for ecb said that markets set themselves up for disappointment over the new stimulus measures. even to the most recent economic data has been encouraging. it seems like a little of a team effort. central-bank almost more than any other central bank in the last five years. are you surprised by the reaction? blamealways have the somewhere else. but we cannot keep doing that. some say if we take responsibility, the markets get ahead of themselves. market safety -- it is complicated by the fact that the ecb is pushing on the quantity button and the executive rate one at the same time. is going to be complicated because pricing in what you think the ecb is going to do or was -- jon: druggie has one of his big speeches, does the market, on a little bit later -- draghi has one of his

i'm talking about glencore and anglo american. we saw the cut in dividend at glencore and anglo american and we haven't seen that at ri rio tinto because their cost structure is so much better. >> it's a supply play as well. i ask why do you continue at the record levels when you're not getting the pricing like you used to. it has to do with what the oil producers are doing to stamp up the small r players and get better market share and dominate the market in the future when prices do bounce back. >> you have to wonder when there's going to be light at the end of the tunnel because we thought the bottom was in september and october for the likes of glencore. cut their dividend. they're announcing they're cutting their debt. they're announcing the sell off of the assets but there's no end in sight at this point. it's very similar to what's happening in the oil market. all right. i have breaking news to share with you. let's talk about sportsouth african court. today granted bail to oscar pistorius after he was convicted of murder f

mark: it showed overwhelming pessimism for copper, glencore came to mind. torrevocably copper. will: this is the other big story of the week. anglo american earlier this week. glencore saying we will have to do whatever we can to/debt -- to slash debt. there is a lot of pessimism about chinese demand and that is why people are gloomy. will, great to see. betty: let's go into stocks and how u.s. stocks are trading right now. we are pretty much near lows of the session. just a note on the s&p. we are counting 26 sessions without back-to-back gains. the record was 28 days back in 1970. it looks like we might be hitting another record, but not one that is good for the bulge. i want to get a abigail doolittle. she is live from the nasdaq. abigail: stocks are certainly lower at the nasdaq. the index is off 1.5% at this time. one winner is adobe systems. shares are higher after to the top fourth-quarter profit estimates as a sign of new customers for their cloud-based services. lots of raised price targets out there. ross mcmillan now has a street , suggesting a 1

saidstatement, glencore $18 billion to $19 billion. the previous was in the low 20's.s debt right now stands more thanlion, is anybody has in the entire industry. tolearned how they are going achieve that. $1.2 billion getting. back. the previousles, target was to raise about $2 billion in asset sales. today, in a presentation, they want to raise $4 billion. >> you wonder how he has held hostage with the demand side of this story. there is a plot that is out of his control, isn't there? >> yes. in the presentation, glencore made it clear that they will cut production and cut costs further if necessary. shares of chipotle falling yet again. the mexican food chain closing a restaurant in boston after dozens of students got sick. local officials said to be leaning to nora virus and not e. coli. it doesn't matter at this point. craig, get us up to speed? 80 students getting sick. including members of the basketball team. the company coming out quickly to say let's not rush to judgment. nothey said there has been new e. coli cases since november 7. the point they are making

in a statement, glencore said they intend to cut debt to about $18 billion to $19 billion.was in the low 20's. glencore's debt right now stands at $30 billion, which is more than anybody has in the entire industry. we learned how they are going to achieve that. a cut in cap x to the tune of $1.2 billion as previously forecasted. also asset sales, the previous target was to raise about $2 billion in asset sales. today, in a presentation, they said they want to raise about $4 billion. >> you wonder how he has held hostage to the fortunes of what is happening with the ultimate demand side of this story. there is a lot that is out of his control, isn't there? >> yes. in the presentation glencore made it clear that they will cut production and cut costs further if necessary. >> shares of chipotle falling yet again. the mexican food chain closing a restaurant in boston after dozens of boston college students got sick. local officials said to be leaning to nora virus and not e. coli. -- norovirus and not e. coli. it doesn't matter at this point. join me for the latest is craig. ge

anglo american is holding an investor day today and glencore is set to update shareholders later.the worst performers this year. now -- 're joined i'm pleased to tell you that monroe is still on with us. good to see you. let's start with anglo. what are the key things to look out for? >> it is all about the dividend today. probably the worst kept secret that anglo is set to cut the dividend. we expect an announcement about 8:00 ahead of the investor day and coming against a backdrop of the worst environment for mining company since 2009. more importantly, this announcement will be watched very closely by people in the industry as a guide to what bhp and glencore do with their policies. manus: this is what you are saying, nirvana. the continue of the bhp, rio and bali continuing to that never-ending rising dividend. it is fairly untenable? >> it is and i think investors have come round to that idea over the past months. the payoff ratio is seen as much more sustainable as a way to pay dividend in a cyclical industry like mining. anna: this ties into something you have talked about

. >>> the swiss mining company glencore is cutting spending in response to low commodity prices.t also has plans to further reduce its debt load. glencore has been particularly hard hit by the decline in coal and copper prices. >>> chipotle has been dealing with issues of its own. today its founder and co-ceo apologized to his customers who became sick after eating at the chain restaurant. in an interview on nbc's "today" show steve els defended the brand, addressed the outbreaks, and repeated his pledge to tighten food safety procedures. >> it's a really tough time, but first i have to say i'm sorry for the people who got sick. they're having a tough time, and i feel terrible about that. and we're doing a lot to rectify this and to make sure this doesn't happen again. >> despite climbing in today's session, shares are down more than 20% over the past two months. >>> volkswagen is another company in massive damage control following its diesel emissions scandal. today during a press conference vw executives said the cheating sprang from a "chain of error" inside the company. but a

keep an eye on glencore. rising as much as 6.5%.oup, upping its view on where it's see it's price core for glencore. seeing optimism about metal prices this morning. that is why we are seeing all of the miners outperforming this morning. keep an eye on this stock. well.logy is doing ericsson, the deal with apple supercharging the stock this morning. in ag the most year-and-a-half. it has managed to settle the legal dispute with apple. starting to see ground being made in terms of the corporation. they are reaching a licensing agreement paving the way for operation going forward after surroundingspute mobile device patents. outlier amid the political uncertainty. thank you. caroline hyde with key stocks and markets you need to be watching. "surveillance." a big focus on oil and spain. ♪ guy: a new low for crude. brent dips to levels last seen in 2004. and stockse election fall as uncertainty looms in spain. a red card. bands their president for three -- 48 years. good morning to you.

glencore stock tumbled 70 percent this year.hairman of china telecom has quit after being targeted in an official investigation. he step down on wednesday. over the weekend the government said he was being questions about severe violations of discipline. that is seen as code for corruption. eve, i'm year's picturing you in an even more glamorous outfit with a glass of champagne. plan is to do a lot of reading for the upcoming year. i think it's all going to be about china and of course i will share some champagne with my husband. >> we will get there eventually. thank you, angie lau in hong kong. we appreciate it very much. ♪ cory: we're looking back at highlights from the show from last year. emily chang traveled to dell world just after it announced its merger with emc. here for your viewing pleasure is our bloomberg west talking stuffer. >> i wanted to understand what they were doing and why they were doing it. when we understood that the intent is basically to drive the platform, as i call it the icebreaker strategy, and pus

glencore is potentially walking a line on that. respects, they are hostages to what happens in the market. if the commodity cycle continues the way that it has, prices remain low or become even lower, then bankruptcy or a major restructuring is a realistic possibility. scarlet: that brings us to the bigger question, which is that everyone is waiting for capitulation in the global commodities market. what does it look like? will we know it when we see it? >> if by capitulation you mean is anybody going to cut output, the shale plays in the united states will reduce output. down and some of that output will decline in 2016-2017. but if you look at the major producers, they don't have an economic incentive to cut output. if you look at their market be a, it would basically revenue losing cost position for individual companies, even as big a saudi arabia are russia, to cut output. they will continue to produce. we are also looking at iran coming online. that supply situation is very bearish, and combined with more demand. scarlet: so c

it's bad. >> shares of glencore jumping this morning.company is accelerating a program to pay off debt and slash expenditures next year. they plummeted 60% this year in fears weak demand would hurt the ability to pay huge debts. shares of chipotle gaining ground. the founder and coceo appeared on "today" moments ago making an apology. >> it's a really tough time. first, i have to say i'm sorry for the people who got sick. they are having a tough time, and i feel terrible about that, and we are doing a lot to rectify this and to make sure that this does not happen again. >> we've been following the stock, it's a tough go. more from the ceo coming up at the top of the hour. mike? >> the force awakens for fans across the nation at early screenings of the new movie on december 17th, and some decided to wait out the time at the theater. the tent city is up in front of the theater in hollywood as fans hope to get a chance at seeing the early screening, and people in line encourages others to join them saying they believe the latest installment

it has been fighting for that position with glencore. it has been really struggling.e've seen it cut jobs, cut the dividend. guy: the wooden spoon. is there any way in which u.s. stocks go up next year? i struggle to see that they are going to produce significant returns. the big question everybody is trying to figure out. there is a nervousness regarding whether you should belong europe. >> there are strong headwinds for the u.s.. we let frothy levels in silicon valley. that looks quite fragile. secondly, we've got a very big political risk. the first three months of the year, we will know whether trump is going to be leading the republicans probably to a catastrophic defeat or whether there's going to be another candidate and a prospect of serious political change. that's going to be a big uncertainty. guy: if you were to pick a number, is it plus 5%, -5%? think we are talking about -20% or -30 present. the reason for saying that is what is going on in the high-yield credit market. the high-yield credit market which deflated considerably in importantths is very to a

even for glencore. earlier, the ceo of the company said, we are going to make 2.7 to 3.7 in annual profit from trading no matter what commodities are doing. that was his quote. now, not so much. they will still make a lot of money but not as much. it becomes more important because of the debt they have on their balance sheet. >> copper is very different from oil. >> what's their leverage rate. you range industries now and people start looking at kmi, of course, and the pipeline. what's the debt load? what happens if ebitda goes down? >> it ended up to be terrific, 5% yield. they suspend the dividend. the reason they had some adjustments again. they are selling at the market. they are selling a ton of stock, $1.5 billion. another $400 million they are selling at the market. those of you that think carl icahn bought a 10. freeport is selling stock every day, because they have to meet the credit demands. copper is what you use when you build major infrastructure. you want to look at the china numbers and b

earlier this week another big mining company, glencor, announced it was cutting forts fifths of a mine in the north of australia. that means another couple of hundred jobs. chervon said it is cutting three to six,000 worldwide. many of those are in perth. the australian doesn't rely on mining, but the dollar has sunk 2% on friday. at about 70 u.s. cents it has fallen against the u.s. dollar since 2011. all of this hits confidence. house prices, it has been the only one up. priority prices in some mining town are half of what they were. house prices in sydney are dropping and falling exports for mining means less tax for the government. that hits revenue and spending is down right across the board >>> china has announced a series of emergency response measures as thick smog continues to blanket the capital. this is what it looks like currently in beijing. the government has issued its first ever red alert. the highest warning level for air pollution. more than two thousand factories have stopped work and millions of private vehicles have been banned from the roads. smog is affecting a n

take a look at glencore.mmodities, the problem in energy. glencore represents that. a lot of investors are paying attention to their credit default swaps, and how they are managing. alix: to see what the risk actually is. quincy: to see what the risk is. also the banks. the banks that work in the energy sector, you have to pay attention to what they are saying, their credit default swaps. because the weakening of the banks, because it is your line in the sand of the trouble that we may have if oil prices do not begin to stabilize. we just need to see it stabilize. that in and of itself will help. we can't forget about china. the more the chinese can do in terms of stimulus. we took a look at the package they have talked about in terms of monetary and fiscal policy. perhaps that might be the biggest contrarian play you have going into 2016, if it actually works. alix: that would be pretty contrarian. pulling up credit default swaps for glencore to look at the five-year, if you can check inside my bluebird term

joining swiss miner glencore among the worst stock performers in the uk lately. both down more than 70% on the year. these are stunning drops especially when taken on top of the fall in energy prices. s&p 500 energy companies just energy have given back almost $360 billion in market cap this year. but energy is not the whole story. >> the infrastructure got built out to try to satisfy china's what was seen as almost insatiable demand. if they can come back, these commodities will come back. for now we're flat on our backs. >> producers are in trouble well. 15 of the 19 core commodities in the thompson reuters global commodities index are down this year. the only positives are agriculture related sugar, cotton, orange juice, and coco. anglo-american says it expects to continue digging for metals such as copper, bulk materials like coal and iron ore and diamonds. but demand is down in all of these businesses. and so are jobs. here in the united states, despite its somewhat healthier than the rest of the world job market, employment in mining and logging was down mo

we have had a big announcement and week with glencore anglo.nother important point to remember is that it is hard for commodities to rally exclusively on production shut ins, on gradual production shut ins. that is why we think the market will still rollover. china has 50% of the worlds copper and iron ore demand. onare more constructive copper. copper, in some ways, is like oil. it is scarce. coal ories like thermal iron ore. scarlet: i know you recently downgraded your price on hold on the fed getting ready to tighten, but there is a turning point? what are the conditions and how likely is it to happen? francisco: when it's the happen for gold prices to rally is that thefed needs to slow down hiking cycle. we expect a hike this year and three or four next year. we think that will negatively impact gold. if the fed stops, i think it will be positive for gold. if it is a reversal, it would be very bullish. gold, in some ways, will hold the key to the cycle and it may start earning before the fed changes its mind, just like it ago, three years a

glencore announcing new financial targets as part of its business update today.ir cutting debt targets. it has been a brutal week in the markets. have they done enough? >> investors clearly liking these new goals for debt reduction. in a statement earlier today, they said they intend to cut that to 19 billion. that will be the net debt burden at the end of 2016. debt stands at 30 billion, which is more than anyone else has the industry. the other thing we learned was how they will achieve that. one point 2 billion getting parroted back from the gear. we spoke a lot about assets. the previous target was to raise $2 billion in asset sales. today, they said they want to raise 4 billion. >> it kind of wonder how really he has held hostage the fortunes of what's happening ultimately with the demand of this side story. there's a lot out of his control. >> in a statement today, they made it clear they will cut production and cost further if necessary. >> shares of chipotle falling again today. they're closing after dozens of boston college students eight there over the

it is a big week for the minors, both glencore and anglo american.hey have last-ditch plans to protect their economies. the hsbc is still alongside us, along with the chief correspondent for bloomberg. prices: aredity plunging. think about automakers globally. they are enjoying some of their lowest prices. it almost a decade, that is. tsey are making more profis because commodity prices have come down. it is going to take a bit of time before they benefit fully. as we go into the new year, the full benefit of lower commodity prices will become apparent for big industrial consumers. ultimately, the consumer, which will be the interesting angle. javier: that is what i don't know. will those companies put bonuses and increase their pml? maybe a little bit of both. the economy is low. weakness in consumer demand, mab ye they need to give consumers happy. watching people are this program in the u.k. are finally chairing. e is anyjor, if there pushback going into 2016, will they move for you? steve: there's a bit more focus on inflation than bonds. people

aof mmg zinc and copper mines in australia, and a copper project in peru that it are acquired from glencore. it comes as china's metals industries are being hammered by slowdowns. it has been targeted for reforms that would boost efficiency. pledged tont accelerate reform of soes. bank has raised $7 billion, selling 70% of stock, investors including ubs. it comes ahead of a planned ipo. postal savings bank is an arm a state owned china post and has the most branches of any lender in the nation. a time when chinese banks are feeling the squeeze of shrinking profit margins and rising defaults. back to you. rishaad: were looking at how australia's property boom is leaving melbourne a wash with antique homes. hour, thelater this best-performing i.t. stock has a lesson for companies in india, avoid working with the government. a look at the credit crisis facing the chinese banks. that is when "trending business" returns. ♪ rishaad: chinese banks under pressure dealing with mounting bad loans. .ncreasingly looking overseas let's get more on the state of these chinese lenders. what is your take on

glencore a little bit higher. a percent. -- .8%. the dax head above water.up the boards quickly. the commodity market, you know the headline from yesterday. a drop below $40 a barrel for the first time since 2009. a bit of a bounce. , the pbocmarket weakening the reference rate the weakest since 2011. a lot to discuss in china. let's cross over to caroline hyde. caroline: i got the biggest fall or for you. it is a stagecoach down the most since 2011, down by 30%. why? the havoc that is been caused by the events in paris. the attacks have been hurting their revenue when it comes to intercity bus revenue. clearly this is a warning. economicage from an point of view. people concerned about using transport after the attacks in paris last month. a very concerning trend. low, aller -- fresno gold rally on the backs of of the first hike of the fed reserve. nillo had alow spill of toxic residue. keep an i on construction. this is the one area of industry that is doing well after the commodity rout. copper so much cheaper. construction much more profitable. inillion

abandoning anglo-american as it announces the scrapping of dividends, cutting 85,000 job, surpassing glencorest performer. take a look at the five-year chart. stock is fallen almost 90%. this is really a fall from grace from the south african miner that produces everything from diamond to platinum to a tiny bit of copper. i have one chart that i feel tells a good part of the story. it's the decline in annual sales. it has gotten really ugly. in the last report it had revenue growth down 18.7%. estimates for the second half of the year are down 32%. corner, inart in the the right-hand corner, that is the estimate. that is unbelievable for a slight down. scarlet: it is the poster child for mining. alix: you basically wind up getting a lot of debt, buying a lot of stuff in the boom times, and when the must happens, commodity prices slide and you are holding a bag of coal at the end of the date. depreciation in image relation and margins. if you were to look at the smoother,gins are but along that same trajectory. joe: if you look at the level of the debt they have versus the amount of free cash

>> the market looks at bankruptcy scenarios, particularly with glencore and the higher debt levels. if we go back to anglo's debt levels, $12 billion going to $10 islion, cutting the dividend just one of many steps and measures they can put in place. i don't think we will see any risk with those big miners, but smaller guys, sure. there will be casualties there, especially going into production. 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

glencore, finally. persist,opper prices consis they will have more days of losses. we will see how that opens. onally, just a quick check the euro dollar. the euro jumped the most since 2009 yesterday. almost 6/10 ofn 1%. jonathan: thank you very much. that is the opening session in europe. the nikkei is down by 2%. that is what is happening in markets. first up, the euro climbs. draw the disappoints with his -- draghi disappoints. asn, focus shifts to the fed investors await the last u.s. payrolls for 2015. volatility. the oil market swings as traders look ahead to the opec meeting today. euro was sent soaring, bonds fell and there was a huge dog selloff. not what you expect from the anouncement of response to the stimulus program. speaking after the announcement, mario draghi said more could be in the cards. >> the governing council will and if monitor warranted, is willing and able to act by using all of the instruments available within its mandate in order to maintain an appropriately green monetary combination. jonathan: for more on the fallout, let's go over t

same with giant copper maker but hadn't glencore. rio is off 38%. these are gigantic companies that produce raw materials that china used to consume like mad. these are massive users of capital equipment. now because of endless commodity weakness, these stocks are still worth selling, even down here. the big five that had dominated the world, they're all falling. as anglo american disseminated its news, oil quickly dropped a buck and change. it was looking 36, another house of pain day for the gigantic energy complex on tap. then two stories that really threw me. toll brothers reports, some excellent housing commentary about how the best is yet to come, more homes to be bought. these guys were positive during the great recession. what happens? the stock starts getting beaten down before the opening bell. i mean, it sold down big time, finishing off 7%. what does that say about owning housing stocks go into a fed tightening? how about nothing good? second, southwest air. best of breed. jeez. comes out with some terrific traffic numbers. o ooh, maybe

glencore and anglo american having to answer tough questions from investors.re some industries. javier blas has more on this. and a fewreat chart winners. javier: anyone that is consuming commodities, whether it is manufacturers, steel and aluminum, refiners, airlines, truck companies, everyone is benefiting from a lower commodity prices. food companies, textile companies, good for the likes of zahra for example. they benefit because basically the cost of production is much lower. javier: cost of production is coming down. think about an airline. lufthansa, the, cost of jet fuel is the second most importing cost the company faces after salaries from the staff. that is significantly down. there is a lag. most of these companies' contracts are a year in advance. the companies are only going to see the real benefit of lower commodity prices as we go into 2016. we are going to continue to see mining companies and oil producers suffering. we will see those companies that require a sending up and -- a significant amount of commodities for their businesses profiting.

glencore. real buying in the sector. >> we're seeing a rally across the board -- not really. nikkei 225 off by just a tad. that's yesterday's close because japanese markets are actually closed for the emperor's birthday today but where we are seeing a rally is in the hang seng and s&p asx 200. actually the australian market has been pushing higher for six days in a row. energy shares up 3.3%. now for the first time in four years yesterday we saw wti closing above brent crude. now that's reversed some what. they're pretty much at par. brent crude also higher by 0.9%. royal dutche shell with a break even price for its purchase of bg. the company also expects the combination to be cash flow in 2016 with $50 barrel or higher. they also announced a cut to spending. the oil firm share price slid to over 30% so far this year but today many of the oil and gas stocks and the commodity stocks are obviously higher. what i pointed out before, wti closing above brent for the first time in four years. that's quite a story. the first time in four years, october 2011 we saw that gap at $28.

we have seen scares around glencore so in both oil and metal there's either the likelihood of further credit issues. the default rate in bonds has gone up. the high yield market is in a mess at the moment. that's an opportunity though because it's very isolated to the commodity sector and that's where the problems are. >> more from jim coming up. let's get back out to cop-21 where steve is standing by with his guest. >> lord nick stern joins us. let's start off on then and now. whether things have gotten much worse or better. >> some things transpire differently. technology improved faster than we thought then. ten years ago the cost of a solar panel is 90% down. divided by 10. i don't think we expected that. technology has moved faster than we thought. on the other hand the science is still more worrying than ten years ago so i think the statement that i made that the cost of inaction are much bigger than the cost of action is still stronger now because the cost of inaction from the science look to have gone up but the cost of action with the great changes in technology look to have