Commodities because we are sub 40. It could spell pain to some of the big Mining Companies. What is your breakeven point. They say the breakeven point is 40, for others it is 44. Bhp at 29. That is why they are able to continue. The question here is sam walsh once said at the start of the year that it was fantasyland if it ever made it to 30. Anna lets bring another boy voice into the conversation. Great to see you. Another sign of pain for the mining sector. It has been ongoing for a number of years. You have a dynamic in a large part of the commodity sector. Big, you have the two players who are still quite comfortable. They are not happy, but they are aware that their competitors cannot live down here and potentially at some point they will enable be able to pick them off and a live to fight another day. Manus lets get up to speed now with your first word news. In importsas slump extended to a record 13 months in november and exports fell for a fifth straight month. The import slowdown means that the industrial plants need less iron ore and coal and consumer demand has not picked up fast enough to compensate. Brent crude picked up after plunging more than 5 yesterday. It comes amid speculation that the global glut will continue. Abenomics has received a shot in the arm after the revised gdp data shrinkingther than 0. 8 as the primary figurehead suggested. Donald trump calls for a total and complete shutdown of muslims entering the notice states. The sweeping the United States. The sweeping statements have drawn harsh rebukes from republicans and democrats alike. Mr. Trump a total and complete shutdown of muslims entering the United States until our countrys representatives can figure out what the hell is going on. Nejra that is your bloomberg first word. For more of these stories and others had to the bloomberg terminal. Anna lets head over to the ink its in asia markets asia. Reporter it has been a challenging session to put it mildly. It is just a sea of red. Shanghais losses, as well as hong kong. We are seeing this commodity story play out. Particularly for these commodities heavy weighted in these areas like the asx 200 and then the naked to 25 and others othersnikkei and climbing. Inthe end, they are joining on the energyrelated misery. I want to take a look at some of the losers. The Iron Ore Price slipping to a decade low. Is the seconds Largest Oil Producer in australia has called off a 2 billion takeover. We are seeing this commodities rout weighing in on a real dealmaking. That wouldve been the Largest Energy takeover this year, and it is off the table. We have seen some moves in the for ex space. The Malaysian Ringgit, we know it is humbling today after a fivedate reprieve. Malaysia fiveday reprieve. Malaysia also suffering. We are seeing the chinese currency heading for its lowest quote in four years. Anna heidi joining us there from hong kong. Manus lets get more uptodate in terms of china. Fifth month for a in china. You can balance it out looking at the import site as well. That slumped for a record 13th month. Shipments from the Worlds Largest second largest economy dropping. Anna inflation data tomorrow could show that consumer prices. Rew lets speak to malcom scott who is our China Economy team leader. What does this continuing trade what mean. What are the dynamics involved . It looks overall like trade will decline in china. Thats for the First Time Since 2009 since the recession. It means this drive to push economy, demandrelated is only going to rise. It cannot export out of trouble anymore. It needs domestic demand to pick up so that the economy can pick up. Like the Global Demand situation will be near Strong Enough this year this year, or even next year with a muted outlook. May not bef recovery enough to help revise growth in china. Lets talk about the import side of the equation. Does this give hope for any sign of a domestic reboot . Too big to depend on the rest of the world. It is not about domestic reorientation. There are some signs of stabilization. Month, down for a 13th but down a lot less than october. Some of the domestic driver seemed to be stabilizing. Passenger car sales in november were up a lot. Front, a lot of these imports look better than they do on other fronts. Shipments of iron ore on the volume site do not look too bad because the value has come down so much this year that it looks a little more dramatic than the volume would suggest. Manus our team leader in hong kong on all the data. Anna lets get back to our global strategist for jpmorgan. The trouble with looking at this story is it is telling you about old china and new china at the same time. There might be less of that run materials, but what is the consumer doing . These are valued numbers. So the price they are imports fall this is one of the things but keeping chinese troubles in perspective. It has stimulus from the Global Economy. It is a massive commodity importer. It is having a very large trade balance because the value has fallen significantly. The direction of travel for policy for more than half a decade. They will be surprised how fast they have pushed that forward and how little concern they have for holding up the old types of industries. About taxned a report cuts. Of fiscal space. You could stimulate the economy through spending but this is usually the kind of stuff you want to get away from. Just cut taxes to consumers. Manus the other letter is the ascendancy which is the yuan. We saw the fx reserves drop again. Record declines. Close since 2011. They have several levers they can pull. All have severe downsides as well. We saw the severe reaction of the world when it moved only a couple percent. They are very well aware that they are playing with fire, but domestically capital outflows would come from a severe devaluation. We have heard from a lot of people that now they can devalue it as much as they want i think that is underestimating in importance they play regional stability. Anna and chinese have said they do not want to drive a short earned currency demand. Guest i think it can happen gradually over time. The other policies they have, plenty of rim to cut the rrr rate. That is prodeclaration, we know that the corporate space in china has been too rapid. Manus are you worried about default in 2016 . I think there has got to be a default cycle coming. Or default ast the government bails out the banks as they have done . I think ultimately, defaults will be fairly contained within china and they will default to fiscal policy as a way to support this transformation and overall Growth Without dropping the currency or encouraging even more debt in the private sector. Talk of a nymex. Ava nymex. Lets talk abenomics. Upwardivision revision. This will be good news for the japanese and for a bit and for abe. Inorter the number came quite strong, a 1 growth in the Third Quarter. Contraction. 8 last week, economists revised their numbers upward, given the Strong Capital expenditures numbers. Fronts. N several business spending, consumer spending, and inventories. It was good news for the Abe Administration because the economy did not go into recession. Tell usat does this about the broader economy . The boj has held firm on their quantitative easing policy. If we might get more fiscal practice as soon as the end of the month. Administration is still expected to move forward on their fiscal package. There are pushing toward companies with strong profits. We have not seen wage growth or a lot of investment here. Stillexpected that a will that abe will still push for that. A lot of economists dont expect that in the december meeting and they are split on whether we will see it in coming months. Governor corona said he wouldnt kuroda has said he does not expect to see that in the Third Quarter. Manus we have the investor data for Anglo American. That kicks off at 9 00 a. M. U. K. Time the u. K. Er will get Industrial Production and then a little bit later the eurozone gdp. Anna welcome back to countdown. Here is nejra. Nejra orange is said to be in talks to buy telecoms media assets. They said they could keep a Minority Stake in the company and no formal offer has been made. We rejected a billiondollar offer in june. There are expectations that gun enthusiasts will buy more rifles as calls for restrictions increase. Pimco is going for heavyweight names in an effort to reassure its clients. Ben bernanke, former british Prime Minister brown, and others will be part of a new Global Advisory board. They receive about 1. 5 trillion and is seeking to fortify ranks after the departure of bill gross and others last year. Theng the place will be Shopping Mall they will be relegated to the cac net 20 index. Lebron james signed an unprecedented contract with nike. They estimate the value at between 400 million and 500 million. Nike said in a statement that the basketball star provide significant value to our business and shareholders. For more on these stories and others text or look at us at bloomberg. Com. Anna expected to announce strategies to combat the commodities rout. Stocks dropped 70 this year. Wherego to johannesburg many of that businesses are based. What announcements might we get from anglo today . Reporter good morning. That theyperations we are expecting that there may be a dividend cut. Something they expected to find. It is getting harder and harder in the environment of falling Commodity Prices. Investors are showing concerns about whether the company can weather the storm. We see that in the 62 slump in the shares this year alone. Manus how much trouble is the company realistically in . This has been under pressure for quite some time. Reporter Commodity Prices have fallen quite significantly. We see the reached near sixyear lows. The company has been announcing job cuts, as well as labor protests at some of the profitable mines. Iron ore is also one of the worst performing metals this year alone. Affectingfinitely their finances. We are seeing that some of the investments outside of africa, the Company Invested 16 billion in an Iron Ore Mining company. That is not faring well at the moment. He came in when Iron Ore Prices were at their worst. The company is definitely facing challenges and it seems quite likely there will be a dividend cut today. Stumbleupon dollars. Tell us where the sectors its because of its dividends. The Oil Companies have said they are so important and we will not cut them. Weve seen glencore have to cut theres. There is a return to higher prices if they really pledge to guarantee dividends at a significant level. It makes me nervous. When you have companies that are not appreciating the new world they are in. If i were a shareholder, and i theyre actually raising cash to potentially pick up weaker competitors. They could potentially pick off a m a at the bottom of these prices. Manus what about the comments the title of the bloomberg story is the word bankruptcy might be the Mining Industries last best chance to clean up. I dont think he is referring to any of the major brand names. I think what he is referring to is here is that something for 2016 . Wherever they are morning, there are parts of that universe where most of the producers have a huge amount of debt which is causing them to continue to mine at very high volumes. Bankrupt or go default on southern portions its a question for each individual company, but it will be a shakeout. Manus these are the commodities which are unprofitable. Nickel, aluminum am a zinc. Aluminum, zinc. You could get a large producer that shows the responsible approach and cuts production, then they can raise supply we are seeing the opposite of that with oil and opec. Or the small producer goes to the wall and has to shut down operations. Saye companies i would we are allowing that to happen and taking assets off the receiver for another day. Anna that kind of chart has to be based on some shoes of what is profitable. Cutting measures are it is so hard to get your hands around this issue. Industry is very hard to cut even an individual company. My father said you can always find 10 in the cost base of a company. We have seen this in the show where they are telling us that their breakeven was north of 60 and then under 40. Ou always find under pressure under this kind of pressure they are finding ways to raise productivity and survive another day. Anna i would love to be there for your pocket money conversations. Find another 10 . Manus i always have 10 tucked away somewhere. You mentioned the shale reducers, what we have is a graphic on the cash piles of the Balance Sheets. And exxon even though they are at a 10 year low there is a mountain of cash in the oil industry. Do you still believe in oil, and what is the prospect for m a . Exxon still leads the pile. What do you make of that . Be aere should absolutely significant amount of m a Going Forward and half a decade, dealing with the consequences of this crash in prices. I dont think they are going away at any time for the next couple of years. You need to bang things to happen before opec will consider coming back. Scream going to come on downstream. And then they need to take a battering, believing they have what they wanted and then come raise the price. Next, the chancellors inner past. What do we mean . The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Manus it is 6 30 and london and seven 30 in 7 30 in brussels. Nejra chinas exports fell for a seventh fifth straight month and imports fell to a 13 month low. Chinas industrial class needs less iron ore and coal while consumer demand has not picked up fast enough. Brent crude has rebounded slightly after lunging 5 yesterday to a sixyear low. It comes after expectations that the global glut will continue. Shot ins has received a the arm after a revised gdp data shows that they avoided a recession. They actually grew rather than shrinking 0. 8 . Donald trump has called for a total and complete shutdown of muslims entering the United States. The sweeping statement has drawn harsh rebuke from democrats and republicans alike. Mr. Trump donald trump is calling for a total and complete shutdown of muslims entering the United States until our countries representatives can figure out what the hell is going on. That is your bloomberg first word. For more on these stories, text the bloomberg terminal or bloomberg. Com. Anna the november passage numbers coming through from this airline. Impact on the attacks the month of friend 13th of last month, the impact was not big enough to hurt 2015 targets. The cfo quantifying that saying the impact on november revenue was about 50 Million Euros. Well see how long the tale is on this essentially and whether people are influenced in their travel plans by this over a longterm period. In terms of the overall richer they say the seat occupancy rate was up between november 1 and the 13th starting with the period before the attacks. Lets turn our attention now to the chancellor. Heres George Osborne with them entry message for america. Might message for you is that britain has its mojo back and we are going to be with you as we reassert, confident that our best days lie ahead. Those words came as he spoke in new york last night. He also said it was a real source of pride for him that the house of commons voted overwhelmingly to join Coalition Airstrikes against Islamic State targets in syria. He also spoke about the crucial issue of bruton britains relationship with the eu. Britain is not part of some of these central eu projects like the single currency and the euro nor indeed the common border. And the European Union has devised for a large member state , the secondbiggest contributor to the eu budget sitting outside the central arrangements, yet that is we need to make these arrangements work better for britain and those trying to make their currency in the euro stronger. Candidate has stressed the importance of britain to staying in the eu. The make the point that union has brought economic benefits to london and our country, also cultural and social benefits. So i am passionately in favor of a sting a member of the European Union. David is still here, a Global Market strategist at j. P. Morgan asset management. Listening to him saying the u. K. Has its mojo back, being specific it has outpaced the g7 and is projected to match the u. S. In 2016. That is quite a bullish call, given the budget you have just seen and the state of the global concerns, is that a fairly bullish call from him . I think it is reasonable. We still believe the u. K. Will grow in excess of 2 next year. It may not be the most rapid pace but there is a resilience to their expansion. There is plenty of room to go in terms of people to come into employment. Investment can still be made. The u. K. Is undergoing a labor supply shock and this has actually been a recovery has not been that fueled by credit. Now that starts to change. You see nonsecured debt, well above income growth. You can see house prices movi