Entering the United States. A financial crisis all star cast for pimco. They name their advisory board. Okay lets check in on european markets. Volatile session yesterday on wall street. We were down 200 points. One point for the Dow Jones Industrials managing decline just lower. Today were looking at losses across the board. Ftse 100 is down by a quarter and cac 40 suffering losses as well. Heres the lead, disappointing chinese export numbers which will go through in just a bit being lead by a lot of the big mining shares with the collapse that were looking at in prices and other commodities. Here you go, lost 1 and also lower by close to 2 and u. S. Futures are looking like this after a decline across the major benchmarks today. We are lower. The Dow Jones Industrial is called down by 33 points. S p 500 pricing in a small up session of maybe one point in the open and the nasdaq looks like were down some 11 points or so. Much of the decline in u. S. Markets yesterday was due to the decline. The slump, the precipitous slump in oil prices. Were seeing buying this morning though. Wti crude still below 40 at 37. 84 but a slight rise after falling 6 in yesterdays trading session. Brent crude at 41. 01. Higher by 0. 7 on the day. In part because the chinese import numbers of oil were quite comforting but maybe this is a little bit of short covering. Iron ore prices have fallen below 40. This is the lowest in a decade and so far this year theyre down 45 and all of this combination is having huge impact on many of the oil and mining stocks. Showing declines of almost 4 . Were off here by 6. 2 . This is a record low for the company as this miner is cutting jobs. Theyre selling assets. Theyre suspending their dividend for the rest of this year and next and cutting down the size of their businesses. Lets get out to steve still in paris. Steve, the massive decline in oil prices not helped by the short positioning, is it . No, well, its boosted by the short positioning in many ways. I was actually quite interested because you had it down from 46 barrel just down north of 41 new. I was surprised the guys didnt take their profit around the opec meeting. What they have done is recharged and carried on with that positi position. Thats part of it as well. But the other part is and i disagree wholeheartedly with a guest you had on this show after i was speaking yesterday that said nothing changed because that guest is right in the fact that there was one more barrel coming on to the market that wasnt already there. Now theyre saying we dont have the difference anymore. We just produced what we produced as well but the difference was the change. They threw in the towel and its all about sentiment in this market as much as its about real physical supply. I was like teach them a lesson . They put 10 to 20 premium on the oil price on the way up. Saudi should have been thanking them. Theres a lot of longer term factors. I was writing about it at the start of last week. I dont think the opec producers or other producers can control the longterm structural issues and one of those is shell despite the real concerns about the financing. Oil production in the United States has not dramatically dropped. It has gone down a little bit but its up by 4 Million Barrels a day from a few years ago. The average production will still be above 9 Million Barrels a day. Presumably the expectations are that over time we will probably see a slow reversal of that drop off and the production will be resto restored and even with our natural Gas Production it continues to go up and our first exports from the lower 48 will hit the water early next year. It was growing 1. 2 to 1. 5 Million Barrels a day. Its come a little bit off the highs but if the u. S. Is Still Producing 9 Million Barrels a day in total of product that shows you how robust the response has been and cost cutting has been despite the lower cost environment has been because you have to satiate the banks in the states as well. It just shows you that i think that opec underestimated the opposition. Were 3 down from that april peak in terms of Oil Production from the u. S. So people are looking at 3240 for the west texas contract. Thats the low for oil pricing. Im wondering if you think were going to get there . I have no idea. Good luck to anyone that thinks they do know. The fundamentals are dreadful. The oversupply is overwhelming. It could be more than a million and a half barrels a day. And yet, the shorts are are so many shorts out there. What does it take to create a short squeeze in terms of sentiment as well . I mention the other point, this is the dollar trade as much as its about an oil trade as well. If the dollar loses robustness because of a slower pace that could mean a rebound for commodities at some stage and other factors in there as well. Thats the x factor. 8 increase from china on the back of the lower prices as well but theyre slowing. Their Carbon Emissions are slowing as well. That growth in chinese demand is due in 2016 as well. So well just hold off a little bit on the china demand story as well and there is issues about the growth of demand more generally in 2016. So theres questions on both side of the equation on this one as well. It seems a slam dunk to carry on going lower but its beyond me to get involved in that lower price action. I never thought you were shy of expressing an opinion but i think i caught you out. Im pretty shy. I can tell. I just get all inhibited thats the problem. I dont like to talk. That camera inhibits me. Thats what i noticed. We need to work on that. To get you out of your shell. Thank you. Well check in again. We should put him on our show for 3 hours every morning. Maybe hell get out of his shell. Oh, hes already on that show. Moving on to our top story, Anglo American unveiled a radical overhaul which will see them consolidated from six units into three and it will scrap the dividend for the rest of this year and next. Shares sinking on the news hitting a record low. Those declines were off by more than 8 . 339. If we take a look at what the shares have done the last three months. Theyre down 50 year to date. Theyre off 70 . Anglo is looking to reduce costs and cap ex. Rio tinto cutting its 2016 capex budget by half a million dollars. So theyll still spend half a billion in a year. We have been talking about it all morning long. It accounts for nearly 60 of adjusted earnings at rio. And bhp, you name it and the other iron ore plays and when youre down below 40 thats a fresh decade low. Its not surprising that were looking at a cut when it comes to cost expenditure. Yeah but you know whats really interesting is the fact that the more pure iron ore players, bhp, they have weathered the downturn in Commodity Prices better than some of the more diversified miners. Im talking about glencore and Anglo American. We saw the cut in dividend at glencore and Anglo American and we havent seen that at ri rio tinto because their cost structure is so much better. Its a supply play as well. I ask why do you continue at the record levels when youre 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 theres 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. Theyre announcing theyre cutting their debt. Theyre announcing the sell off of the assets but theres no end in sight at this point. Its very similar to whats happening in the oil market. All right. I have breaking news to share with you. Lets talk about sportsouth African Court. Today granted bail to Oscar Pistorius after he was convicted of murder for killing his girlfriend Reeva Steenkamp in 2013. That was on valentines day. The judge saying the athlete did not pose a flight risk. So south African Court granting pistorius bail after that murder conviction. That was a surprise because the Supreme Court last thursday upgraded the sentence to murder from culpable homicide. This was unprecedented in the criminal history of the judicial history in south africa. So thats the South African equivalent of homicide. Its been upgraded to murder but now hes granted bail. What i find extraordinary is he has already served his sentence and now being convicted by the Supreme Court without a trial. I find that extraordinary. Im still trying to understand the judiciary there. Lets take a look at asia. We saw big declines in the asia pacific and this is on some disappointing export import numbers from china and also we had japan narrowly escaping a technical recession. Its two quarters of negative growth in a row. Looks like they have missed that because they somehow squeezed out gains and expansion in the third quarter. Meantime the composite closing down almost 2 posting the fifth straight months of declines and imports going down as well for multiple months and people are thinking what does this mean for demand coming from china and also the growth picture . The picture remains sluggish on the external front. Exports contracted by 6. 8 . Imports by 7. 8 contraction there. This was bad on the import side but it wasnt as bad as most were looking for. They were expecting a number of 12. 6 contraction on that so the import number not as bad as forecast, 6. 8 contraction tells you that the environment is still quite sluggish. The policy response will be quite interesting. Now post sdr inclusion thats a hot of emphasis on the yuan and are they going to rye to engineer a lower currency in order to stabilize expert growth. Thats an interesting question in terms of the policy response. In terms of the Broader Market action theres two dynamics. Yes the trade performance underwhelunde underwelmed so that save sentiment a knock across the region. Also was the oil price. Been talking about this seven year lows yesterday. A degree of stabilization but it looks like the proverbial gap bounce and the Energy Stocks as you would expect underperformed today across the board. What will be interesting, and you saw this today, is that the countries that are the Net Oil Exporters that really depend on the stronger oil price for oil revenue got a big hit today and im talking about malaysia. It was down by more than 1 and you saw this play out across the em spectrum, the peso, the ruble all hit hard by this slump in oil price so many my mind are we going to see an even more aggressive rerating if this oil price continues to decline . Thats the big open ended question across the end spect m spectrum. Thats the big negative feedback. Back to you. Thank you so much. Still to come on the program, were live at tech crunch here in london and today we have the ceo of aol, Tim Armstrong will be joining us. That conversation coming your way at 11 20 cet time. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. Hi watson. Annabelle, your birthday is tomorrow. Im turning seven. What did you ask for . A princess. And a pony. You like things that begin with p. I like pink frosting too. Will you have a cake . Yeah. I was too sick to have one last year. The data your doctor shared shows you are healthy. Are you a doctor . No. I help doctors identify cancer treatments. I want to be a doctor someday. I can help with that too. Watson, i like you. Theyre eyeing a Work Force Reduction to 135,000 employees at the end of 2015 so that signifies a huge reduction in the jobs at the company and theyre also moving the london headquaters and finally theyre not targeting asset fire sales but theyre selling a significant number of assets. Shares in the company did fall to a record low this morning. Last time i checked they were down by roughly 8 . Beijing has issued its first ever red alert for smog amid dangerously high pollution levels across the country. Schools have been shut and many factories closed and theres restrictions keeping half the vehicles off the road. Authorities are expecting very heavy smog in beijing over the next three days and this leads us right into the Climate Change discussions and negotiations in paris. Cop21 and steve is back for more. Steve. Guys, i have an absolutely fantastic guest for you next. Speaking to helen clark who is former Prime Minister of new zealand. Great to see you. Thank you for joining us. We were talking off camera. How do you feel its going . I think its bright and still a lot of hard issues to crunch and the issues we have known about for quite a lot of years. Theres a key issue. What do you think the key crunch issue is that is or states exhibit being addressed at the moment . Its going to come down to the longterm goal. Is it going to be 2 degrees or 1. 5 . Are people going to be accountable for the actions they commit to . These are at the core of what needs to come from paris. And that is the reference to some people saying 2 degrees above preindustrial times is not enough. We need 1. 5 degrees now. You were saying the u. S. And the eu are getting behind that but do you think theres some developing nations or rich middle eastern nations that might not want to go there. 2 degree has been the conventional wisdom for a long time. Its a very Exciting Development to see the eu and the u. S. Start to say, look, maybe we need to think about this 1. 5. That would be for Something Else of course but i have to say the kind of extreme weather events were now seeing with nothing like 2 degrees or 1. 5 celsius rise would make you think it needs to be revised down. Do you believe its the old dividing lines and sticking points of developing nations versus developed nations that is still in evidence here despite the shift weve seen from china . Having interacted with leaders for the last 15 plus years a core concern is could they reach advanced economy status on a renewable path with the means available to them . Its going to be an issue of whats the terms of Technology Transfer and whats the financial means. A lot of issues. People give up the right to develop them by going on a clean path so we have to show that the right to develop is enhanced by going on a clean path. They have questions about the trust that the money is going to turn, 100 billion per year and this is supposed to be a multidecade plan. Thats a big commitment. Theyre right to question where that money is going to be there, arent they . Its not going to be 100 billion of public money. We struggle to keep the 135 billion for official develop m assistance. So adding another 100 billion on that of public money is not so its going to be a mix and the question is do we count for example the money no longer paid in the fossil fuels subsidies. Do we count the private investment . Of course we should count anything coming from the multilateral and regional and other banks so its an issue of what is the 100 billion made up of . And the private sector needs to play a large role in that as well. What about loss and damage . You represent the smaller voices and give them a loud voice as well. Its a key issue. Is there going to be any compensation . Would it lead to more litigation . Is that fair . So loss of damage did come into the language but i think clearly developed countries are signaling that they wanted to stop some what short of compensation so the issue would be what would be the creative mechanism that could deal with it. For example, for the smaller developing countries that we must be very much advocates for, more support for adaptation. Thats the critical thing for them on financing, could there be more support for risk based insurance which would pay when things go wildly wrong. What about your ability to barrow. A huge problem is they are now middle income countries. No concessional finance and middle income country status is no guarentee you wont be wiped up in the next cyclone or hurricane so these are core issues. Really nice to see you again. Another new zealander. Congratulations a passionate rugby fan. Back to you guys. Lets talk about m a. Staplings and office depot plan to fight the federal trade commissions. The decision to block the 6 million merger on antitrust grounds so the ftc said this deal would hurt competition in the u. S. Office supply markets. Staples and office depot falling more than 14 on monday and over at german trade were looking at pronounced declines for office depot, staples. Its lower by 5 . Yesterday, shares in Green Mountain closing more than 70 higher. This after the European Investment company made a 13. 9 million offer for the coffee firm. Thats aa 78 premium to the Closing Price on friday. A u. S. Senate panel is holding a hearing at 10 00 a. M. Eastern on the 107 billion deal to buy up its rival sab miller. Ab inbevs ceo and miller coors chief will be testifying and the panel will examine potential antitrust issues as the combined company would huge controlling around a third of all beer sold worldwide. Lets talk more about where we are in the m a cycle with professor scott miller, director of the m a research center. What they claim to do, could they get that money back in the near term . Theyll have to work hard on that one, wont they . Its interesting that they are taken private. So in a way it doesnt matter what they will look like because theres less scrutiny from the public markets. They can all do it in private. He can on that and thats the nice thing. This also bodes well for what might be happening with the private equity business as well because thats been one of the things that hasnt really come back in the strength that we had seen back the last time we had it. So back in 2007 driven by privat