Welcome to todays worldwide exchange. Ross westgate is away. Im kelly evans. These are your headlines from around the world. A new chief executive after dropping profit. But cnbc reports the leadership change isnt related to the results. This is a process that started years ago. Happens to coincide here today with a weaker pricing environment. But two totally unrelated events. Teleco stocks on the move. Kpns 4 billion Capital Raising plan is backed. Full year earnings below expectations. And comedianturnedpolitician says his moving is unstoppable. In an exclusive interview, he says italians need to step aside. The rush to set up shop in china is down. The fastest decline in more than three years in january. Okay. Lots happening on the program today including a grew interviewer coming up. Well be counting down to the bank of england minutes after Andrew Bailey is to lead the new banking regulation unit. The minutes will be out in a halfhours time. Well bring those and u. K. Unemployment figures. The Central Bank Watch extends overseas as investors stand by for minutes from the Federal Reserves latest meeting. Theyre due out later this afternoon in the u. S. Will the fomc offer clues on an end to qe3 . Were joined at 11 30 to weigh in. With indias government clouded in corruption allegations, well speak to one of the countrys wealthiest individuals and what it means for business. Billionaire udai kotak joins us in 20 minutes time. Plenty coming up including sony which is heading to the bill apple for a major on, national endowment. Will the game console giant take the wraps off its rumored playstation . Expert analysis at 11 20 cet. And bhb bulletin has posted a steep fall in earnings for the first time in the year. The Australian Mining giant announced change at the top after the 43 drop in profit. We have more on this report from sydney. Reporter the surprise at bhp, billitons ceo mariu Marius Kloppers announcement coming earlier than expected. Coincided today with a weaker pricing environment. But two totally unrelated events. Reporter he will be replaced by Andrew Mckenzie, current head of bhps middles division. Hes well regarded in the industry and says dont expect a change in strategy. Listen in. Theres lots of things that are great about this company. I have no intention of changing. We have a fabulous strategy thats served our shareholders extremely well. Youve heard from jack and marius about that. I am going to continue this momentum that weve built together to put a sharper focus on the execution of that strategy. Analysts welcoming his experience in oil and gas saying thats key given a forecast drop in iron or e demand. They report a drop in profit to 5. Billion after 3 billion in writedowns on its aluminum and nickel businesses. On the upside, executives are looking for demand to improve over the next 12 months. Shares finished almost 1 down. Back to you. Joining us is john meyer, analyst from s. P. Angel. Welcome. Good morning. Bhps results, your take . Wellcrafted statement. I think a very good move to bring in Andrew Mckenzie at this point in time. Its quite defensive, it says were going to focus more on the Petroleum Division. Thats kind of a bedrock for the business. Where its as iron ore and other commodities are more dependent on what goes on in china. Of course, nobodys got control of that. With the new chinese leadership in place, there is some uncertainty as to how aggressive theyre going to be on their france spending and that sort of Infrastructure Spending and that sort of thing. Theyll carry on growing infrastructure within china, but at a slower rate. Whats interesting is to look at the results today which fell on weak iron ore prices. They bottomed in september and are up now. Expecting a price of 140 to 130 a ton. Whats your view, and is bhp going to be successful in diversifying their business if they dont set a target to make the Oil Petroleum unit one of the worlds biggest . Theres nothing low about iron ore prices now. Theyre quite high. Theyre not as high as they were last year, they were at exceptional levels until midway through last year when they started coming off. Still very good levels, probably unsustainable in the longer term. We would expect to see prices come down by maybe 1 3, for example. That will not back profits of the division. Iron ore is still bhps biggest profit area. And other businesses, for example aluminum are showing writedowns as with rio tinto not going so well. Meantime, the Petroleum Division continues to run quite well. Good Oil Production but a disappointment on the natural Gas Production side of things. I think they need to work on that business. Lets not forget that bhp is differentiated from the other minors by its oil business. Rio tinto, extrata, they dont have that business. Rio tinto down 1 , bhp down. 9 . A little different revenuation. Despite despite bringing on Andrew Mckenzie, if iron prices will fall by 1 3, you cant recommend bhp, can you . Its well diversified and a sol solid business. They will increase iron ore. We wouldnt expect another 4 billion, 5 billion profit from the iron ore business. Thats likely to come down a bit. The other business of looking fairly strong, bhp is a wellmanaged company, no doubt about that. Weve seen so much management turnover, not just at bhp but at several Mining Companies. Take a listen. Weve spoken with the ceos outgoing in some cases, incoming ceos of Mining Companies in the last week or two. Heres what they generally said about management transitions. We know that the world has become a more volatile place. We recognize that since the gfc, weve seen gyrations in economies that we wouldnt have ever seen before. There have been challenges, but changing regulatory environments in emerging countries are not easy. And i think we understand that, and weve gotten through the worst. There used to only be one regulator that applied territory to the deal, now there are many. Hurdles are increasing. Are we through the worst . Yeah. I think we are actually. I think theres quite a lot going for the sector now. I think currencies may well provide boosts for this year. Commodity prices look relatively stable. Yes, well see some volatility in iron ore, but i think coal prices should start to recover. And theres a whole raft of other commodities that are looking solid now. Its not looking like a bad outlook. I still think well see pretty good earnings numbers from these companies. So your favorite picks . Im going for reo tinto. Im backing sam walsh. Hes Proven Expertise in holding down costs in iron ore. He will, play that across the world. Hes universally popular in the industry. Any prospect for major m a . American is a target out there, the 20 billion market cap. Its easy for others to buy. Mick davis will be on the street looking for something to do. Im sure hes got lots of plans. Im sure hell start his own business well backed by Financial Institutions. We havent seen announcements. Watch the space. We will indeed. John meyer, we will have you back to watch it with us. Analyst from s. P. Angel on set. Thank you very much. In markets, quick movers the largest cement maker is near the top of the stock 600 after swinging back to profit in the Fourth Quarter. Different story for lufthanza, shares down 5. 5 on the back of the airline scrapping dividends and Going Forward with a 9 9 billion euro order for plans. France telecom reported slowing earnings broadly in line with analysts at citis expectations. Trades been volatile. Shares fractionally lower. Lets check the broader landscape. Two european markets are a little higher. Xetera dax adding. 3 after a Strong Performance yesterday on the strong zew survey. Bond rates, we havent seen as much focus on the space. It tells you something. The ten year in spain, 5. 15 , under 4. 4 for italy ahead of the elections on sunday. Over to forex, the euro yesterday was initially stronger. Gave up ground. Today, adding. 2 to 134. The yen giving up another. 3 , heading back toward the 93 level. For more lets check in with li from singapore. Reporter thank you. Asian shares climbed to the highest level in 1. 5 years on an improving global outlook. The nikkei managed to close at a 52month high despite a record trade deficit in january. Investors are still awaiting the decision for the next boj chief. Toyota shares gained 1. 7 after thenique reports. The carmaker will ramp up production in april by 10 on expectations of higher domestic sales and more profitability due to a weaker yen. Japan tobacco lost 1 an reuters reports the japanese government will begin selling its shares of the company in the next few days. The Mainland China markets rebounded from losses over the past two sessions. Investors are looking for policy cue s in the upcoming sessions f the National Peoples congress and the chinese peoples political conference in march. Environmental stocks surged on hopes of more government supported. Local meadad say china will invest over 56 billion to control air pollution by 015. 2015. Shares in hong kong also finished in positive territory. Gaming stocks fell after reports say gambling revenue will be weak in february. Elsewhere, south korean automakers Technology Shares and n brokerages led the rally on kospi ending higher by 2 . And the esx 200 hit a fresh 4. 5year high helped by gains in banks. The major minors ended weaker after bhp reported a sharp rise in costs. Sensex trading higher by a modest. 1 . Back to you. Thank you very much for that. Well check back again in just a little bit. Kpn shares, want to draw your attention, down almost 7 this morning. This after carlos slims company and one of its biggest shareholders approved a capital raise. Investors, though, generally looking at the company and say figure it needs a capital raise, potentially the business is in worse shape than previously thought. Giving up almost 7 today. Well keep an eye on that throughout the morning. Italys caretaker mario monty has come out swinging against Silvio Berlusconi saying he didnt keep promises he made in the past and that someone else could govern well. This comes as the outspoken comedianturnedpolitician whipped a crowd into a frenzy in milan. Julie is in milan. In fact, she was at the rally. What was it like . Reporter it was incredible. Some of the estimates suggest up to 100,000 people here. This square behind me was absolutely packed. And i have to admit he was treated like a rock star. They made a human chain to get him to the stage that was on my right. The press, italian press, literally mobbed hip as he got out of his camper van. Hes on his tsunami tour, he calls the process of the rallies hes been going through. In direct contrast, i have to say, to the rally that we saw earlier which was far more sedate and far fewer people. He really is managing to monopolyize on this monopolize on this austerity and i dont think we can discount how much this has gripped in some ways like greece, for example. Reminded me of the second election and seeing the support. So you can ride that wave a long way. Now, when i spoke to him yesterday, i asked whether hed managed to monopolize on the corporate scandals and whether that and the political fallout has to get worse before it gets better. Listen to what he had to say. Translator this country is falling down like a house of cards. This is the biggest financial scandal in the history of the republic. Everyone from the upper echelons of government are involved. All Political Parties are volv theyve tried to cover it up with misleading information, misleading news. In this country the media is has conclude colodue colluded with the government. Its coming down, and we have to rebuild from scratch. We need to start with those people who can no longer live in the situation, w a salary for citizens. We must immediate help the small and medium enterprises. Were running out of time. Reporter all the other parties seemed to attack it, do you think theyre scared . Translator yes, theyre out of the game. They belong to history. They have Television Studios where they go because the journalists that interviewer them work for those parties. They cannot put their noses outside. They live in a parallel dimension like a truman show. They realize citizens have turned their back on them. Like the old fascist officials that would go on saying bring out armies here and there, when in reality the armies had ceased it exist. These parties are like old actors acting before an empty theaterment theyre the past. In six months we will not even remember them. Reporter do you think that if you dont win this election and somebody else forms a coalition well actually have to go back to the polls again in a few months time . Translator absolutely, yes. Its only a matter of time. Either they give up now or give up in six months. One year at the most. No government could rule a country in ruins. Most certainly those who reduce it to ruins cannot be allowed to govern it. We guarantee we will fill a void. In other countries this void is filled with fascists, by the pen in france, the party in hungry, greece. We are keeping people calm. These parties need to understand that it is over for them. Reporter now, grillos effectively ruled himself out of power saying on no account would he form a coalition or what the likelihood is. Were looking at a coalition between mario monty centrists and the center left party of basani. Thats where the ultimate question mark remains just how stable is a coalition that they can form. Do think its interesting. In the papers today, suggesting that blackrock will send a convoy here to talk to pollsters to assess the risks surrounding this election. Perhaps the concern that weve been talking about over the last few days reflected at least in the front end of the italian move over the last couple of days. For now, back to you actually, i want to mention one thing. We are actually going to be talking exclusively to the ceo to get an idea of the business environments and what theyre thinking here post this election versus, of course, the politicians that weve been speaking to for the last few days. Wanted to mention that at the end there. Perfect. That interview will be coming up on european closing bell. Great to see you. More from julia later on in the program. India is facing an economic slump thats meant its top growth pace has cooled, and so are businesses feeling the chill. Coming up, well speak to one of indias wealthiest individuals, udai kotak live from mumbai. Well be right back. Great, everybody made it. We all work remotely so this is a big deal, our first full Team Gathering i wanted to call on a few people. Ashley, ashley marshall. Here. Since were often all on the move, ashley suggested we use fedex office to hold packages for us. Great job. [ applause ] thank you. And on a protocol note, id like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh im sorry guys. Ah sometimes the caps lock gets stuck on my keyboard. Hey do you wanna get a drink later . [ male announcer ] hold packages at any fedex office location. Welcome back to the program. Chinas reputation as the worlds factory remains in dispute as the countrys Foreign Direct Investment dropped. 3 on the year in january, coming in at over 9 billion. In 2012, chinas fullyear fdi hit nearly 112 billion although it was shy of the 120 billion target. It was also the first annual drop in three years. Meanwhile, japans trade deficit hit a record 17 billion in january. To put that into context, exports climbed 6. 4 , the first gain in eight months. Imports rose at a faster pace, up 7. 3 from a year ago. The weaker yen is a doubleedged sword. While it makes japanese exports more effective it costs the costs of import which are largely priced in dollars. French bank agripol posted the loss of 6. 5 billion euros. The sharpest loss since the bank went public in 2001. Theyve added 3. 7 , and stephan has more from paris. Its extraordinary that the company is doing worse in 2012 than during the financial crisis. Reporter yes, absolutely. But the bank believes that the worst is not over. It has turned the page and thats the reason the stock is performing well this morning. Credit agricole will reveal the Restructuring Plan after the summit. Theres not much details, but were expecting the bank to cut its expenses. Thats precisely what other banks have been doing in recent weeks. Bnp parabas said they would reduce the cost base by 2 billion over the next three years. And Societe Generale simplified its structure in order to reduce its cost base. Thats precisely what were expecting from credfrom Societe Generale. The rate was at 9. 3 at the end of basal 3. They will improve without any capital increase. That also from a market point of view was a positive announcement from credit aricole. The loss was wider than expected because of a significant charge on the former greek unit, on the italian unit, on the portugal unit and the tax change on the sale of its greek unit. That was not planned. Thats the reason why the loss was wired than expected in the fourth wider than expected in the Fourth Quarter. Thats over, what the ceos say this morning. The bank has transformed itself and will announce a plan in september. The share price up nearly 4 . Thank you very much for the background on that. Investors today are putting that toward the top of the stock 600. In fact, the fourth best performer on the day, Credit Agricole up 4. 1 despite the writedown. We mentioned that foreign direct. In in china had fallen. Were also getting foreign direct in china had fallen. Were also getting that they will have expanded property tax trial and implement property purchase limit. The shanghai composite addi adding. 6 toda