14/12/2015 BBC Business Live

Business live, from the BBC, with Ben Thompson and Sally Baldock,

president Barack Obama hails the climate deal as a turning point, but

at the cost of billions of dollars, can the agreement ever succeed? Live

from London, that is the top story. Nearly 200 countries agree a

landmark deal to cut emissions but how will it affect business and is

there the collective will to put that theory into practice? We will

have those questions answered shortly. Also, can you feel the

Force? Disney certainly can. They are expecting to make hundreds of

millions of dollars from the latest Star Wars movie. And the

rollercoaster has begun. Asian markets were headed lower. Europe is

going higher. What will they do this week? And making millions out of

mixers. The boss of Fever Tree joins us. And as the interest rates creep

up, we want to know whether America will raise the cost of borrowing for

the 1st time since 2006. Let us know.

It is a packed programme. A very warm welcome. As the dust settles on

the landmark climate deal in Paris, businesses are assessing how it will

impact their operations. 200 countries took part in the

negotiations, striking the 1st deal to commit all nations to cut

emissions. As Ms leaders have already called for more action, the

Confederation of British industry called for an environment that

enables investment in clean, secure energy. The climate group and

business partners called it a victory for science and division

which calls time on the fossil fuel age. Barack Obama said the deal is

the best chance we have to save the 1 planet we have, which could be a

turning point. And China and India hailed the deal. Campaigners said

this did not go far enough. Friends of the Earth urged that energy

efficiency and renewable power efficiency and renewable power

should form the backbone. Some politicians have undermined

investment in these areas. Let's take you to Mumbai. This historic

deal being hailed as something which will make a huge difference. India

were pushing for a differentiation between emerging economies and

developed. More help for emerging economies in terms of looking for

alternative sources. That is what the Indian government seem pleased

about, they said there were no winners or losers in Paris. The

Environment Minister said what they are extremely satisfied with is the

differentiation in the wording of the deal for developed countries.

India needs to burn coal for it to grow. But they have committed to

doing is reducing the intensity with which these will grow. Not everyone

is happy. Lots of campaigners said this was a week and unambitious

deal. They are saying it is discharging developing countries of

their historic responsibilities. They say from 1965 until 2014 India

only contributed 3% of greenhouse emissions, whereas the US has more

of a responsibility. Developing countries have gained from this.

What our businesses saying about what will change for them? How will

they respond to this? It is about a source of power. The big plan the

government has, they said they have set out $2.5 trillion. People are

talking about hundred billion dollars of funds. It does not seem

to be enough and there is not a proper road map. Business leaders

have recognised the responsibility, 1 of the biggest IT companies in the

country have said they recognise responsibilities but there are needs

to be gradual. They cannot stop it cutting emissions any time soon.

Thank you very much. Other stories, starting with Twitter, which has

sent warnings to number of users that their accounts have been hacked

by what they as state-sponsored actors. The Chinese and North Korean

governments are believed to be responsible. Business confidence

held steady. Some fear that it will not last. The bank of Japan has

shown that major companies stood at plus 12.

nationalising the nuclear submarines business of Rolls-Royce, according

to the Financial Times, it is worried that the whole company could

be vulnerable to a takeover bid from a foreign investor despite

safeguards put in place when it was privatised in 1987, it is still

concerned about who may end up servicing the country's nuclear

submarines. And the live bait, a couple here,

one about the deposed move of HSBC, certainly, the rumoured move of

whether the bank could move its headquarters, many expect that it

would move to Hong Kong, HSBC, as it points out, making 80% of its

profits in Asia. The bit of a giveaway! Where might they be

thinking? Possibly Canada is one option, considering moving the

headquarters, where will it move. I wonder what the staff are thinking

about all of this. Hong Kong or Canada? I think that I would choose

Canada... Get in touch, if you live in Hong

Kong, or Canada. Which one would be better. A quick look at

stories here, this picture there, Peppa the Pig, which owns

entertainment one, its shares are down 20%, at the same monthly

interest payments would be down. I have watched it... It is great.

You have a Nice, she is very cute. China has been making the headlines

for all of the wrong reasons. A glimmer of hope when it comes to the

Chinese growth story. Good economic data out of China over the weekend.

Retail sales, strongest game this year, fixed asset investment,

beating market expectation, it shows that all of these stimulus measures

that the Chinese government rolled out over the past year to prop up

the world's second-largest economy may finally be working. We six

interest rate cuts since last year, and most of those investment, just

last week, Friday, the economy is slowing, growth will fall to its

slowest pace this positive data has eased some of

the worries, China anticipated, analysts are still

hoping for even more measures from China. Good to see you, thank you

for the update on China. Did not help markets across Asia, and

closing down, at one point it was down 3% today, Hong Kong also lower,

that is the close in the US on Friday. Jitters about the Fed 's

decision this -- midweek setting in. The oil price is continuing to

retreat. Let's look at Europe, let's not forget, European markets have a

pretty torrid Friday, ending the week 4% lower, some of the markets,

as you can see, a bit of a bounce back across the board in Europe,

various companies coming up with announcements, among them,

AstraZeneca, saying that they are in talks with an over-the-counter trug

developer in the United States. Corporate new is out there today.

Let's look ahead to what is going on on Wall Street. Last week the US

market was hit with its worst weekly loss since the

question, how will the markets respond this week, especially with

the Fed's looming interest rate decision on Wednesday, there will be

a whole host of economic data for investors to take him, figures out

Tuesday are likely to show that consumer price has increased, only

slightly, and analysts predict industrial production data will show

that it has dropped for the third straight month in November. And a

pharmaceuticals Chief Executive is going to hold a meeting for hundreds

of investors on Thursday, Canadian company's stock -based world drops

after under scrutiny, for billing practices at a specialty pharmacy

and for hiking up prices. She will be speaking about Star Wars

for us later. Richard Hunter has joined us, head of equities, let's

talk Fed, because finally, we are in that week, we will question whether

the cost of borrowing will be raised by the US, but it is coming at a

time when we have seen such volatility, not least with

commodities markets. Pretty weak market, last week, as we were just

mentioning, a lot of that down to commodities prices, the main culprit

was probably oil, a massive global glut, Opec said a couple of weeks

ago that it will continue at production level, there is more due

on stream next year, around 40 bucks a barrel, some people are beginning

to question whether it is viable to continue to do that, and get stuff

out of the ground. All of that is deflationary, that is not the

environment where we would be looking to raise interest rates,

that being said, the US is the world biggest economy, and there is

probably a 75% chance at least that we will see some kind of like when

they make the announcement late in the week. Can they afford to not

change rates? They cannot. In September, they did not actually

make any announcement at that point, just to put it into perspective, the

most important thing comes next year, because the likelihood of an

interest rate hike is not going to be a big one, it is a more -- it is

more of a gesture, we will turn attention to how many hikes we will

see next year, current market consensus, anywhere between two and

four. Underneath all of that, the Fed have said, this will be a

gradual game, the last thing they want to do is not only derailed

their own economic recovery but also send shock waves around the world to

other countries. Who have debts denominations in dollars. Thank you

very much. Coming up: making millions out of

mixers, the boss of Fever Tree its air to persuade you and me that his

tonic walk water is the only one to drink this party season.

We have talked a lot about the slump in commodities prices but the big

question, where does that leave the megamerger between BG and shell, it

seems that a shareholder vote is all that stands in the way of a deal to

create the biggest listed company in Britain, but does it still make

financial sense, with oil below $40 a barrel at the moment? Simon Jack

is in the business newsroom. It has changed a lot since that initial

deal, discussions of a deal, on the radar between Shell and BJ.

Interesting other commodity belt can scupper the best laid plans of some

senior management, as you would say, making one of the biggest companies

in the UK. This is when the deal was announced, big increase in price,

look how fortunes are closely linked, mirroring each other's

moves, the shares combining, the boss of shell himself, last year,

said that this deal only makes sense with oil at $67 a barrel or higher,

currently, it is below 40. One major shareholder this morning told me

that he is not happy in voting for this unless they come up with

something else because on the current, the way that this deal is

active, it does not make any financial sense. The Chinese

regulator gave this the green light, but it will not be the regulator

that is the obstacle to getting this megamerger done, it is the

shareholders themselves, based on the say-so of the Chief Executive of

shell. That story changing all of the time.

There is a timely story in the Guardian looking at the closure of

the last remaining coal mine in Yorkshire. Particularly timely given

the news we've heard about the climate change talks. Paul was once

dominant industry. It is very easy to romanticise, this article says,

in an industry that was hard on the environment and the people who

worked on it. They look back at what is a historic day but given what we

said at the top of the program, still a big source of energy in

India. But you're watching business live.

The top story, world leaders have hailed the business -- hailed the

deal reached in Paris, President Obama saying it is the best chance

we have to save the planet. But major nations think it is far worse

than perfect. The agreement is not binding. We have been assessing the

impact on businesses in emerging nations. As the Christmas party

season gets into full swing, what is your tipple of choice? When it comes

to gin and tonic there is a relatively new player in town. Not a

gin but the tonic. A premium drinks company called Fever Tree was set

up. The product range began in 2005 with tonic water using premium

ingredients. 7 of the worldpos-mac top 10 restaurants agree. Europe is

the market but they are sold in 50 countries around the world. There

were revenues of $52.5 million. The CEO of Fever Tree is with us and has

brought with him mixers and ginger beer. He has not brought ginger

beer. It is too early in the morning. Thanks for being on the

programme. 2005, relatively new company. How did it begin? You

mentioned my business partner and I, we got together back in 2003 and we

identified the same thing, premium spirits had been growing all round

the world, better quality spirits coming to the market and this

wonderful craft spirit. Bartenders were celebrating spirits. This was

happening but in stark contrast, the next category remained the preserve

of one global brand focusing on fighting with local cheaper

alternatives. It had become commoditised category. Artificial

sweeteners found their way in across the board. People spending more

money on good quality gin, and when you think three quarters of the gin

and tonic is tonic, surely the quality of the tonic is as

important. You are a relatively small player taking on the might of

Schweppes. They still dominate this market. How do you sell yourself? Is

it the premium range or selling the better ingredients? We saw ourselves

as offering something different. We were putting quality and flavour

back into this category. We looked at it through a different lens.

Broadly speaking, the only similarity is we are both in small

cans. It is 50p to buy a can of fever tree. It is still very

affordable. We need to leave it there because we have so much more

to pack into the programme. We will unpack further later on. There has

been another big shake-up in South African politics, with the President

replacing the newly appointed finance minister with a more

experienced colleague. He is the third finance minister to hold the

brief in a week. Pretty volatile week. Absolutely, it sent the rand

into turmoil. Three finance ministers in one week. It started

with the shock sacking of a man considered a safe pair of hands.

Replaced by someone with no experience whatsoever, seen as a

politically inspired move but after much pressure over the weekend, the

president, who was defiant, had a change of heart. His previous

finance minister has come back. In the next couple of hours we should

get the words of the minister as he takes to his desk. It introduces a

degree of stability to the markets. We are seeing some recovery. Is the

reputational damage there? We will keep an eye. We will look through

the business pages in a moment that you cannot fail to have noticed that

there is a new Star Wars film coming out this week. Prepare for all the

merchant dies as well as the actual film. We've been looking at what it

means for Disney who are releasing the film. High energy and nostalgia.

There are no clues for the plot but fans are offered the same characters

as the previous franchise. The future of the franchise is

limitless. I see no reason Star Wars cannot continue in the hands of

gifted storytellers. A big factor in the success is the broad appeal

across three generations. A retailer's dream which Disney has

been happy to fulfil. We will be doubling the space in the majority

of our stores with incredible new products to allow collectors and

kids to get into this franchise. Merchandising has driven most of the

revenue, and sales are expected to be ?5 billion. There are toys,

novelty items, video games. Disney is planning to Mac theme parks.

Disney's strategy has been focusing on marketing the brand. What started

in a galaxy far away has become self-sustaining business which could

outlive the first fans. I am excited. You're not going to be able

to see it? I've got a four -year-old. I cannot persuade them

here's 12 at the cinema. You're not a fan? I am not. Let's talk about

this story. Butlers are trading this story. Butlers are trading

silver trays for iPads or tablets. You need tech skills to be a butler.

It is quite obvious when you think about it. Not just a question of the

tablet situation. They've got this high-tech stuff around the house and

when it goes wrong they need an expert. Much like working here.

Sorry to keep it so brief. Thank you for that. Good morning. It has been

cloudy and