Browse content similar to 18/01/2016. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
milder across the far west. High pressure will keep the milder air at | :00:00. | :00:00. | |
bay for the next couple of days. We will have cloud floating around. | :00:00. | :00:08. | |
This is Business Live from the BBC with Sally Bundock and Ben Thompson. | :00:09. | :00:12. | |
$28 a barrel or less - oil prices continue to slide | :00:13. | :00:16. | |
after decades of sanctions are lifted against Iran. | :00:17. | :00:18. | |
Live from London, that's our top story on Monday the 18th of January. | :00:19. | :00:36. | |
Oil has fallen to lows not seen since 2003. | :00:37. | :00:45. | |
It's $28 a barrel and set to fall even further. | :00:46. | :00:48. | |
Also in the programme - the downturn in China is being felt | :00:49. | :00:51. | |
here in the UK - Tata steel is set to lay off over 1,000 people | :00:52. | :00:54. | |
It's the start of a new trading week, but the same pressures | :00:55. | :01:00. | |
Oil, China, Middle Eastern tensions and slowing economic growth. | :01:01. | :01:04. | |
And we'll be getting the inside track on how media | :01:05. | :01:10. | |
bartering is transforming the advertising industry. | :01:11. | :01:17. | |
Francis Dickins, the founder and chief executive of Astus, | :01:18. | :01:19. | |
will tell us how companies like Mazda and Sky are trading | :01:20. | :01:22. | |
their services against huge ad bills. | :01:23. | :01:28. | |
Today we want to know as the wealth gap grows - | :01:29. | :01:31. | |
do you feel richer or poorer than you did 10 years ago? | :01:32. | :01:33. | |
Iran's president, Hassan Rouhani called it an economic turning point | :01:34. | :01:51. | |
after sanctions over its nuclear programme were lifted. | :01:52. | :01:53. | |
He said it's time for the country to build and grow. | :01:54. | :01:56. | |
Mr Rouhani says Iran needs 50 billion dollars a year in foreign | :01:57. | :02:02. | |
investment if it's to reach its goal of 8% annual growth. | :02:03. | :02:05. | |
Iran is seen as one of the largest untapped markets in the world | :02:06. | :02:08. | |
And the economic payback for Iran and its potential business partners | :02:09. | :02:18. | |
The US estimates more than $100 billion of funds will be | :02:19. | :02:24. | |
And it's the oil and gas industry, banking, transport and tourism | :02:25. | :02:31. | |
services that will all likely benefit from foreign investment. | :02:32. | :02:35. | |
Amrita Sen, Chief Oil Analyst, Energy Aspects, joins us | :02:36. | :02:39. | |
We have talked about this many times, what will it mean, will it | :02:40. | :02:53. | |
work. It has happened and a knee jerk reaction on the financial | :02:54. | :03:00. | |
markets? We shouldn't we surprised. This has been in the making for six | :03:01. | :03:03. | |
months. Yes, it has probably come about six weeks and we expected and | :03:04. | :03:10. | |
probably the market expected, but I think the markets are reacting as if | :03:11. | :03:14. | |
this has come out of the blue. It is positive for Iran, but for the oil | :03:15. | :03:18. | |
market it will take a bit of time. Because the dollar sanctions are | :03:19. | :03:24. | |
still in place. Things will be a bit slower. Companies need to evaluate | :03:25. | :03:27. | |
how that will impact the other operations. Some of the newspaper | :03:28. | :03:35. | |
articles are saying it is kicking off an oil war in the middle East, | :03:36. | :03:41. | |
what do you think about that? Iran, we have all known once the sanctions | :03:42. | :03:45. | |
are lifted they will come back to the market and sell more. I don't | :03:46. | :03:49. | |
think they will be able to sell a lot more quickly. They are talking | :03:50. | :03:56. | |
about a million barrels a day, but that won't be possible without | :03:57. | :04:00. | |
Western expertise, and that will be the key. It will happen, but it will | :04:01. | :04:06. | |
be slower. If you look at what Saudi Arabia is doing, it is pre-empting | :04:07. | :04:10. | |
Iran coming back in Europe and is starting to make new alliances. It | :04:11. | :04:15. | |
is starting to sell more oil to Eastern Europe, which will become | :04:16. | :04:17. | |
the new battle ground between Iran and Saudi Arabia for oil. You | :04:18. | :04:24. | |
touched on the Western expertise that will be needed, where do you | :04:25. | :04:29. | |
think the biggest investment will come, other than oil and gas? We | :04:30. | :04:35. | |
touched on tourism, banking and it is these big infrastructure | :04:36. | :04:38. | |
projects? It is infrastructure, and some of the deals they are talking | :04:39. | :04:42. | |
about with India and the Chinese are to do with the railway and road | :04:43. | :04:46. | |
infrastructures. That is where the demand story for Iran lies. Iranian | :04:47. | :04:54. | |
oil demand could be on the upside if these infrastructures kick in. I | :04:55. | :05:00. | |
will get you to say how low oil will go in the future, are you willing to | :05:01. | :05:06. | |
give us a number? At the moment, it could literally go anywhere. I was | :05:07. | :05:10. | |
joking with a colleague saying, everyone is talking about $10 oil, | :05:11. | :05:17. | |
what about zero! We are starting to see a lot of cancellations of | :05:18. | :05:21. | |
projects, so the physical side of the market is telling us the | :05:22. | :05:25. | |
rebalancing is starting, but I think it could go a little lower. Nice to | :05:26. | :05:27. | |
see you. Tata Steel is expected to confirm | :05:28. | :05:29. | |
later that it is cutting more About 750 of them in | :05:30. | :05:33. | |
Port Talbot in south Wales. The firm announced 1,200 | :05:34. | :05:41. | |
redundancies last year. Chinese president Xi Jinping | :05:42. | :05:44. | |
has officially launched a new international | :05:45. | :05:47. | |
development bank. The Asian Infrastructure Investment | :05:48. | :05:49. | |
Bank or AIIB is seen as a rival Mr Xi said the bank would be used | :05:50. | :05:52. | |
to meet Asia's enormous financing needs and invest in high | :05:53. | :06:00. | |
quality low cost projects. The aid and development charity, | :06:01. | :06:04. | |
Oxfam, says the richest 1% of the world's population, | :06:05. | :06:06. | |
about 73 million people, now has more than the combined | :06:07. | :06:10. | |
wealth of everyone else own as much as the poorest half | :06:11. | :06:13. | |
of the global population, How rich do you feel, do you feel | :06:14. | :06:41. | |
less than you did and at the height of the financial crisis. Let us | :06:42. | :06:52. | |
know. Let's have a look at some of the discussions on our web page. | :06:53. | :06:59. | |
There is a discussion about China, whether it is due for a soft or hard | :07:00. | :07:05. | |
landing. The lower oil price prompted by no demand from China. | :07:06. | :07:10. | |
The growth number for the year will be released. We will be talking | :07:11. | :07:15. | |
about at this time tomorrow. But there will be some discussion about | :07:16. | :07:20. | |
what we can expect on our web page. Also about the situation in Port | :07:21. | :07:25. | |
Talbot in South Wales. The great pictures. These come from a global | :07:26. | :07:32. | |
entrepreneur. He has been developing pictures. This is a rocket and is | :07:33. | :07:40. | |
landing. The whole point is it is reusable. But when it doesn't quite | :07:41. | :07:51. | |
go according to plan. Oh dear! That is the rocket not managing to return | :07:52. | :07:55. | |
quite as successfully as they would have liked. But they are working on | :07:56. | :07:59. | |
that reusable rocket, which will cut the space of the leader-macro -- cut | :08:00. | :08:09. | |
the cost of space travel. But that one cannot recycle. Let's back to | :08:10. | :08:12. | |
the markets. Nervousness in global | :08:13. | :08:14. | |
markets continues. It was enough to send shares | :08:15. | :08:16. | |
in Japan to their lowest level Another difficult start to a week in | :08:17. | :08:29. | |
Asia? Yes, good to talk to you. In Japan, it felt to the lowest level | :08:30. | :08:36. | |
of the year and it follows the falls in the US market and the drop in oil | :08:37. | :08:42. | |
prices to below $28. By closing time, Japan would close some ground | :08:43. | :08:49. | |
and it is the same story much across Asia. Shares in Australia and Hong | :08:50. | :08:54. | |
Kong were down. In China, lob beat property report showed property | :08:55. | :09:00. | |
prices rising 1.6% in December from a year earlier. This good move, | :09:01. | :09:10. | |
along with the central bank to stabilise saw the composite moving | :09:11. | :09:13. | |
out of negative territory closing 4% higher. China's quarterly gross | :09:14. | :09:20. | |
domestic product numbers are out on Tuesday and analysts are expect in | :09:21. | :09:25. | |
shares to be hurt later in the week with falling oil prices and | :09:26. | :09:27. | |
continued worries about economic growth. Thanks very much. | :09:28. | :09:33. | |
So we're starting the week with oil prices nearly 20% lower | :09:34. | :09:36. | |
than the start of the year, and stock markets around 10% lower. | :09:37. | :09:41. | |
And it's widely expected the losses wont stop here, | :09:42. | :09:45. | |
with China and oil prices keeping investors nervous. | :09:46. | :09:48. | |
The lifting of sanctions on iran, good news for some, not great news | :09:49. | :09:57. | |
for oil producing nations as Iran re-enters the oil market pushing | :09:58. | :10:01. | |
That's also sparked heavy falls on Middle Eastern stock markets | :10:02. | :10:06. | |
including Saudia Arabia, Kuwait and the UAE. | :10:07. | :10:08. | |
Markets are closed in the US for a public holiday. | :10:09. | :10:11. | |
Here's how european numbers have opened. | :10:12. | :10:21. | |
Lots of the markets to die just and a lot of nervousness in those | :10:22. | :10:26. | |
figures, even though they are green for now. | :10:27. | :10:29. | |
Joining us is Brenda Kelly, Head Analyst, London Capital Group. | :10:30. | :10:32. | |
Looking at Europe for the start of the week, how they ended on Friday, | :10:33. | :10:40. | |
it's not much, that little bounce back we are experiencing so far? No, | :10:41. | :10:45. | |
since the beginning of the year we have seen serious declines and | :10:46. | :10:49. | |
levels have not been breached over the last few days. A lot of visit | :10:50. | :10:55. | |
down to the oil price and the FTSE 100 and the mining sector as well. | :10:56. | :10:59. | |
It is this slowing global demand, not just in China but in other parts | :11:00. | :11:03. | |
of the world, that is adding to the woes of the FTSE do nominated stop | :11:04. | :11:09. | |
us. Until we see the heightened demand or a cutback in supply, | :11:10. | :11:12. | |
particularly amongst oil or iron ore, we can expect this negativity | :11:13. | :11:19. | |
to follow. If you look at the bets on oil, as in people predicting it | :11:20. | :11:23. | |
will go lower, they are at a record high and often you get a squeeze | :11:24. | :11:28. | |
which sends oil prices higher, because there is little left to | :11:29. | :11:33. | |
sell. Most people have to reduce their positions and buy, which sends | :11:34. | :11:38. | |
the prices higher. But there will be choppy markets for the next few | :11:39. | :11:42. | |
weeks. There is a tendency to talk about oil prices falling as a bad | :11:43. | :11:47. | |
thing, but around the world it makes goods and services in the shops | :11:48. | :11:52. | |
cheaper because fuel is cheaper, it is cheaper to produce things because | :11:53. | :11:55. | |
factories are spending less on energy. Where is the impetus for | :11:56. | :12:01. | |
prices to rise? It is coming from the oil producing countries | :12:02. | :12:05. | |
themselves saying we need the price to be higher? There are a few | :12:06. | :12:10. | |
drivers for oil. Supply is one thing and Saudi Arabia have refused to go | :12:11. | :12:14. | |
back in production because they want to eradicate some of the cheaper | :12:15. | :12:20. | |
shale producers out of the US. That hasn't worked very well. And also | :12:21. | :12:25. | |
political issues have failed to stem the price of oil falling. It is not | :12:26. | :12:30. | |
just a supply issue but a lack of demand. As well, you have seen the | :12:31. | :12:36. | |
US dollar has been rising for the last 18 months. As the dollar rises, | :12:37. | :12:43. | |
commodity prices fall. With expectations the Federal Reserve | :12:44. | :12:46. | |
made put interest rates up higher in the coming year, that is to the | :12:47. | :12:50. | |
detriment of oil as well. We could see the US Federal Reserve deciding | :12:51. | :12:56. | |
not to be as strong headed about tightening monetary policy, because | :12:57. | :12:59. | |
we are beginning to see the fallouts of the emerging markets, oil prices | :13:00. | :13:03. | |
and a manufacturing recession as well. Thank you very much. We will | :13:04. | :13:07. | |
talk to you later in the programme. Still to come: How to cut | :13:08. | :13:10. | |
the cost of advertising. We look at the new way some | :13:11. | :13:14. | |
firms are paying for ads by swapping their goods and services | :13:15. | :13:17. | |
for air time and ad space. You're with Business | :13:18. | :13:20. | |
Live from BBC News. And now a look at some | :13:21. | :13:23. | |
of the stories from around the UK. Tata Steel is to cut more than 1,000 | :13:24. | :13:26. | |
more jobs in the UK, with most of the redundancies | :13:27. | :13:29. | |
in Port Talbot in Wales. It's currently the UK's | :13:30. | :13:34. | |
biggest steelworks. Simon, these job cuts we are expect | :13:35. | :13:46. | |
link come on top of a whole raft of cuts that were announced last year? | :13:47. | :13:51. | |
Yes, dark days for the steel industry. The 752 go at Port Talbot | :13:52. | :14:00. | |
on top of 1200 that went in red car on Teesside and the job cuts in | :14:01. | :14:03. | |
Lanarkshire in Scotland. They have an emergency meeting last year. They | :14:04. | :14:11. | |
approach the EU to get approval to offset some environmental subsidies | :14:12. | :14:14. | |
and also an investigation going into dumping of Chinese steel on European | :14:15. | :14:20. | |
markets. But is the problem. Steele has been produced in China, but not | :14:21. | :14:25. | |
being used there because the economy is slowing. So it is flooding | :14:26. | :14:29. | |
European markets. Lots of the UK demand is being met by Chinese | :14:30. | :14:34. | |
imports which means prices for hot coiled rolled steel have fallen. | :14:35. | :14:42. | |
There is some hope a private equity firm might buy some of the Tata | :14:43. | :14:50. | |
operations. But I think it might be too late for the job cuts we have | :14:51. | :14:54. | |
heard about today and on top of the 1200 we have heard about last year. | :14:55. | :15:00. | |
So many parallels only talk about commodities, second macro is in | :15:01. | :15:04. | |
focus, but talking about oil which is what we have been talking about. | :15:05. | :15:09. | |
So many parallels that as demand for what ever commodity falls, we are | :15:10. | :15:14. | |
seeing that immediate reaction and oil firms, steelmakers cutting | :15:15. | :15:15. | |
investment and cutting supply? You were saying isn't the oil cut a | :15:16. | :15:25. | |
jolly good thing? It is. If you look at the knock on effect it is having | :15:26. | :15:28. | |
on the manufacturing supply chain, some of the industries that serve | :15:29. | :15:32. | |
the North Sea industry, that's where you're seeing the problems show up | :15:33. | :15:35. | |
there. Generally a good thing, but in some industries, it is really | :15:36. | :15:38. | |
hurting very badly and we are seeing more evidence of that today. Thank | :15:39. | :15:44. | |
you, Simon. Tata Steel, the story online, as | :15:45. | :15:48. | |
soon as we get confirmation from the company, we will bring you | :15:49. | :15:51. | |
up-to-date as and when the news does come through that the jobs which are | :15:52. | :15:55. | |
widely expected to be chopped are done so. | :15:56. | :16:02. | |
Our top story: Oil prices slide to lower than $28 a barrel | :16:03. | :16:07. | |
as investors weigh up the lifting of sanctions against Iran. | :16:08. | :16:11. | |
For Iran, the economic gains could be immense. | :16:12. | :16:22. | |
For everyone else, the fall is hitting their budgets hard. | :16:23. | :16:27. | |
Now new technology and the internet has changed the way firms advertise | :16:28. | :16:30. | |
and target customers, thanks to social media and web ads, | :16:31. | :16:33. | |
rather than traditional newspapers and billboards. | :16:34. | :16:34. | |
But one thing that hasn't changed is how they pay for it. | :16:35. | :16:37. | |
Firms traditionally pay money in return for advertising space. | :16:38. | :16:39. | |
In the UK alone it's estimated that companies are likely to spend nearly | :16:40. | :16:44. | |
$25 billion on advertising this year. | :16:45. | :16:47. | |
So a growing practice to off-set this whopping cost is something | :16:48. | :16:57. | |
That means that a company will provide goods or service | :16:58. | :17:01. | |
usually whatever they produce themselves - | :17:02. | :17:02. | |
in exchange for a portion of the advertising bill. | :17:03. | :17:04. | |
Astus Group is a leader in the field with nearly half of the market share | :17:05. | :17:08. | |
in the UK which is said to be worth $583 million with many leading | :17:09. | :17:11. | |
Frances Dickens is the chief executive of Astus and is | :17:12. | :17:16. | |
We briefly explained how this media bartering works, but could you just | :17:17. | :17:28. | |
add a bit more meat on-the-bone as it were? Yeah, sure. As you partly | :17:29. | :17:33. | |
explained when brands want to advertise their goods or services, | :17:34. | :17:36. | |
one of the biggest costs that they will face is actually the media | :17:37. | :17:40. | |
spends whether that's television, radio, print or even digital. And | :17:41. | :17:46. | |
what media barter does, it is a process that evolved over the last | :17:47. | :17:49. | |
20 years to allow those companies to lower the cost of that advertising | :17:50. | :17:52. | |
by paying for part of their advertising and their own goods and | :17:53. | :17:56. | |
services because lots of companies will have capital tied up either in | :17:57. | :18:02. | |
unsold goods or services that they have yet to provide. You have media | :18:03. | :18:05. | |
owners on the other hand who always want to get more share. They might | :18:06. | :18:09. | |
want to attract new clients and make it as competitive to them as | :18:10. | :18:13. | |
possible and what the media barter agency is connect the two so that | :18:14. | :18:16. | |
each of them gets what they want, but without having to pay 100% cash | :18:17. | :18:21. | |
for it. What sort of things can you barter? If you produce something | :18:22. | :18:27. | |
that's really useful to that other company, that's useful. But what if | :18:28. | :18:31. | |
you produce something that's niche? How do you find a market? For | :18:32. | :18:36. | |
starters it isn't a direct swap. We will take the product that's being | :18:37. | :18:40. | |
offered and we will move that on according to what the client asked | :18:41. | :18:44. | |
us to do. That's the first difference. And you | :18:45. | :18:48. | |
know, generally, we can find a use for almost anything. We have | :18:49. | :18:52. | |
barterred a huge range of things in the last ten years. Give us some | :18:53. | :18:57. | |
examples. What are the weirdest things you have had to barter? Ah, I | :18:58. | :19:02. | |
knew you were going to ask me something like that! Not the | :19:03. | :19:06. | |
weirdest thing, but the most challenging was some little ceramic | :19:07. | :19:09. | |
bowls that were produced particularly for a food manufacturer | :19:10. | :19:14. | |
and of course, we had to find an alternate use for them. We also | :19:15. | :19:18. | |
early on, we took some cars that were in the UK market, but they had | :19:19. | :19:26. | |
no roof, no doors and they were inpractical for the UK weather, but | :19:27. | :19:30. | |
we managed to find a home for those as well. Why would a big global | :19:31. | :19:35. | |
player, the big brands that are your clients, want to go for this process | :19:36. | :19:40. | |
as opposed to going to a traditional advertising agency and doing is it | :19:41. | :19:45. | |
the normal way? Yeah, well, we always work alongside the media | :19:46. | :19:48. | |
agencies. So they are using the media agency and they will still | :19:49. | :19:51. | |
select the media and negotiate as usual, but our bit is to set up the | :19:52. | :19:55. | |
arrangement where we can pay partly in product. It might be about | :19:56. | :20:00. | |
reducing the cost of the advertising because by using their own product, | :20:01. | :20:04. | |
they can do that. It might be about getting products out there. We have | :20:05. | :20:07. | |
launched several new cars by getting them out on the road early or it | :20:08. | :20:11. | |
might be about clearing stock that they have discontinued and they | :20:12. | :20:14. | |
don't want it anymore and they want us to get rid of it. You're going to | :20:15. | :20:19. | |
expand to China? Yes. And you have just got a licence. Yes. How do you | :20:20. | :20:24. | |
expect this to take off? People have to be educated as who how it works. | :20:25. | :20:28. | |
Do you have any sense as to whether they are ready for this kind of | :20:29. | :20:32. | |
thing? We have spent two years researching on this because you | :20:33. | :20:35. | |
don't get a licence in China overnight. We spent two years | :20:36. | :20:40. | |
covering the ground. The media owners want to do it. We have | :20:41. | :20:43. | |
clients working in the UK and Australia who want us to work with | :20:44. | :20:48. | |
them over there which has been one of the big drivers to go there. We | :20:49. | :20:54. | |
have all three parties saying, yes, yes, please, the Chinese are very | :20:55. | :21:00. | |
entrepreneurial. Social media has changed how the advertising industry | :21:01. | :21:03. | |
works and how you target consumers and you can get a specific pay | :21:04. | :21:10. | |
become for a certain consumer rather than big mass market advertising. I | :21:11. | :21:15. | |
imagine this steps into that neatly because it allows people to target | :21:16. | :21:19. | |
people more specifically? Yeah, I agree and fragmentation is really | :21:20. | :21:23. | |
good for us because it gives us more opportunity to work with people. We, | :21:24. | :21:27. | |
you know, we've run digital campaigns for thousands of pounds | :21:28. | :21:31. | |
for clients, all part of the deal. It doesn't have to be big brands | :21:32. | :21:34. | |
we're working with and social media is a good opportunity for us. | :21:35. | :21:40. | |
All right. Thank you very much for coming in, Frances, and we will | :21:41. | :21:44. | |
watch how you get on in China. Best of luck. | :21:45. | :21:48. | |
In a moment we'll take a look through the Business Pages, | :21:49. | :21:51. | |
but first here's a quick reminder of how to get in touch with us. | :21:52. | :21:54. | |
The Business Live page is where you can stay ahead with the day's | :21:55. | :21:59. | |
breaking business news. We will keep you up-to-date with the latest | :22:00. | :22:02. | |
details with insighing and analysis from the BBC's team of editors right | :22:03. | :22:06. | |
around the world and we want to hear from you too. Get involved on the | :22:07. | :22:09. | |
BBC Business Live web page. Business Live on TV and online | :22:10. | :22:19. | |
whenever you need to know. And Brenda is back | :22:20. | :22:30. | |
to look at the papers. This is another Business Live guest. | :22:31. | :22:41. | |
European Union to scrutinise usage of big data by large internet | :22:42. | :22:46. | |
companies. This is a story as to whether or not | :22:47. | :22:51. | |
this, these companies will be in breach of antitrust rules and would | :22:52. | :22:56. | |
actually block a lot of its rivals in term of joining into the | :22:57. | :22:58. | |
competition. The fact these companies have a huge amount of data | :22:59. | :23:02. | |
on people could become problematic and create something of a monopoly | :23:03. | :23:05. | |
which is what the EU is frightened about. For the time being, it seems | :23:06. | :23:10. | |
that there isn't any real concern, but it is something that they're | :23:11. | :23:14. | |
watching closely and if there are problems, they may very well impart | :23:15. | :23:20. | |
some regulations to ensure there is competition still in this industry. | :23:21. | :23:24. | |
We interviewed the Competition Commissioner on the programme and | :23:25. | :23:27. | |
she made the point we are willing to hand overall of this information | :23:28. | :23:30. | |
about ourselves online because you do so in return for free goods and | :23:31. | :23:34. | |
services and that's the issue. We're handing it over, and then we're | :23:35. | :23:37. | |
asking these companies actually to be careful with what they do with | :23:38. | :23:41. | |
it, clearly. But then, there is a trade off, isn't there? We get | :23:42. | :23:44. | |
something in return therefore the big firms are saying, "We need to | :23:45. | :23:48. | |
use your data as well." That's the case and that's what they are trying | :23:49. | :23:52. | |
to prevent because it might erect barriers to competition. When you | :23:53. | :23:54. | |
have all these large firms like Google and Facebook having all that | :23:55. | :23:58. | |
information, there is a lot they can do with it and it can be obviously | :23:59. | :24:03. | |
positive and negative as well, but this is, I'm just having to make | :24:04. | :24:07. | |
sure the companies use their data and use it in a responsible way | :24:08. | :24:11. | |
rather than selling it on and creating problems within the | :24:12. | :24:15. | |
industry. Now, let's look at the stories about what happened in the | :24:16. | :24:17. | |
Middle East yesterday. Because financial markets were open, of | :24:18. | :24:20. | |
course, on Sunday. It is the beginning of their week. This is the | :24:21. | :24:28. | |
business insider with a picture of a man with his head in his hands. | :24:29. | :24:32. | |
Markets had a rough time. They have had a rough time and the think the | :24:33. | :24:36. | |
markets should have been expecting this sanction to be lifted from | :24:37. | :24:40. | |
Iran, but Saudi Arabia has been not without problems and it has | :24:41. | :24:43. | |
introduced a lot of fiscal changes, but it needs to have oil prices | :24:44. | :24:49. | |
around $45 per barrel and now we're languishing around $28. That and the | :24:50. | :24:52. | |
fact that their currency is pegged to the US dollar is a little bit of | :24:53. | :24:58. | |
a problem for them and they're supporting that currency with huge | :24:59. | :25:01. | |
foreign exchange reserves in order to keep it on an even keel, but for | :25:02. | :25:07. | |
the time being, growth from Saudi Arabia, where it was set ten years | :25:08. | :25:12. | |
is vastly reduced. There maybe some fall-out from this later on. A quick | :25:13. | :25:16. | |
word on Davos, it gets underway tomorrow. Tanya Beckett is winging | :25:17. | :25:20. | |
her way there now for us. It is a golden ticket that gets you into | :25:21. | :25:24. | |
Davos, but it comes at a hefty price tag? It certainly is. If you look at | :25:25. | :25:29. | |
revenue that's been there over the last number of years, revenue to 144 | :25:30. | :25:36. | |
million at the end of last June. It is like 3.5% higher than last year. | :25:37. | :25:40. | |
The S and P removed the floor against the euro even buying a drink | :25:41. | :25:45. | |
or a bag of chips in Switzerland at the moment will cost you at least a | :25:46. | :25:49. | |
tenner! What about hot chocolate on the | :25:50. | :25:52. | |
mountains? We will have more from Davos | :25:53. | :25:57. | |
midweek. We will. Thank you for your company today. We will see you soon. | :25:58. | :25:58. | |
Bye-bye. Rather grey and chilly out there for | :25:59. | :26:13. | |
many parts of the country. The chilly theme continues for most of | :26:14. | :26:17. | |
the week. There is milder air trying to push in from the west, | :26:18. | :26:18. |