Browse content similar to 01/11/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :00:00. | :00:07. | |
Oil giant BP takes a beating as the low price of crude | :00:08. | :00:10. | |
But it's a different story for its rival Shell. | :00:11. | :00:14. | |
It posts a surprise rise in earnings. | :00:15. | :00:17. | |
Live from London, that's our top story on Tuesday 1st November. | :00:18. | :00:36. | |
BP's profits virtually halved in the last quarter, | :00:37. | :00:38. | |
We'll get an expert view on the differing fortunes of these | :00:39. | :00:45. | |
Also in the programme, dramatic numbers from | :00:46. | :00:50. | |
Our team in Asia will tell you all you need to know. | :00:51. | :00:59. | |
And, the trading day in Europe has just begun. | :01:00. | :01:01. | |
Shell shares have spiked, BP shares are slipping. | :01:02. | :01:06. | |
Plus, two key central banks in Asia made decisions today. | :01:07. | :01:09. | |
And we'll get the inside track on 50 years in the entertainment business. | :01:10. | :01:16. | |
The nightclub mogul Peter Stringfellow joins us | :01:17. | :01:18. | |
later to talk clubs, cocktails and Brexit. | :01:19. | :01:22. | |
But with the closure of several iconic nightclubs, we want to know, | :01:23. | :01:28. | |
do nightclubs have a future, amid rising costs, falling visitor | :01:29. | :01:30. | |
Oil doesn't just help our engines run, it fuels the world economy too. | :01:31. | :01:57. | |
And in the last couple of hours global oil giants BP and Shell have | :01:58. | :02:02. | |
given us the latest snapshot on how things are going. | :02:03. | :02:05. | |
Their latest results come amid the continued slump | :02:06. | :02:08. | |
BP posted profits of $933 million in the third quarter of this year, | :02:09. | :02:19. | |
but that's down 48% on the same period a year ago. | :02:20. | :02:23. | |
But there was better news at its rival Shell, | :02:24. | :02:27. | |
which beat expectations to make $2.8 billion in the same period. | :02:28. | :02:32. | |
In January, it dropped to its lowest level in over a decade, | :02:33. | :02:42. | |
It's currently hovering around $50 a barrel, | :02:43. | :02:52. | |
weighed down by persistent oversupply. | :02:53. | :02:57. | |
In September the Organisation of the Petroleum Exporting Countries, | :02:58. | :03:01. | |
or Opec, agreed to do something about this. | :03:02. | :03:04. | |
At a meeting in Algeria they announced a modest limit | :03:05. | :03:07. | |
on oil-output levels in order to prop up prices. | :03:08. | :03:12. | |
This is the first cut in production since 2008, | :03:13. | :03:17. | |
but the details of how the cuts will work are yet to be finalised, | :03:18. | :03:23. | |
and any further agreement has yet to be reached, following a meeting | :03:24. | :03:26. | |
of both Opec and non-Opec members over the weekend. | :03:27. | :03:33. | |
Alex Holburn is a director at the merchant bank Hannam | :03:34. | :03:35. | |
What is so interesting is the diverging fortunes, BP reporting a | :03:36. | :03:52. | |
nearly halving in earnings, but a 20% rise at Shell. Both companies | :03:53. | :03:58. | |
have been in different positions over the past couple of years. VP | :03:59. | :04:04. | |
has had a number of legacy issues and has been shrinking, not least | :04:05. | :04:08. | |
the oil spill issues in the Gulf of Mexico. Meanwhile, Shell has | :04:09. | :04:15. | |
capitalised on the downturn in markets and purchased BG earlier | :04:16. | :04:20. | |
this year, and is starting to see that reap rewards. When we are | :04:21. | :04:25. | |
looking at the low oil price, we have seen all of the big firms | :04:26. | :04:29. | |
having to change their business fundamentally. Shrinking their | :04:30. | :04:34. | |
business, reducing profiling. Is that the story now for the future, | :04:35. | :04:39. | |
the only way they can win any market or profitability back, by reducing | :04:40. | :04:44. | |
what they do? Absolutely. There has been a deemphasis in the parts of | :04:45. | :04:49. | |
the business but are not profitable, and the refining marketing has | :04:50. | :04:55. | |
bailed out some of the integrated in the past couple of quarters. The oil | :04:56. | :05:01. | |
price bottomed in January, West Texas intermediate did in February, | :05:02. | :05:06. | |
and since then we have seen a substantial uptake, and the upstream | :05:07. | :05:11. | |
divisions are starting to see the benefits. The clear focus amongst | :05:12. | :05:17. | |
all oil and gas companies is on being able to continue to pay their | :05:18. | :05:21. | |
dividends going forward. They are substantial contributors to | :05:22. | :05:25. | |
pensions. The emphasis is on cash flow, trying to maximise that, and | :05:26. | :05:30. | |
do every thing they can on the other side to reduce costs, a combination | :05:31. | :05:32. | |
of reducing capital expenditure, some companies have introduced | :05:33. | :05:37. | |
prescription dividends, offering shares instead of cash, but an | :05:38. | :05:41. | |
emphasis to maintain the dividend yield, which is around 6%. When we | :05:42. | :05:50. | |
talk about Opec, basically cannot come to an agreement anymore. It is | :05:51. | :05:55. | |
to be what they said went. Now they cannot seem to get their act | :05:56. | :06:01. | |
together. It looked as though we might see some kind of agreement at | :06:02. | :06:04. | |
the end of September in Algiers. We are now awaiting confirmation of how | :06:05. | :06:09. | |
they are going to potentially achieve that 32.5 to 33 million | :06:10. | :06:13. | |
barrel a day production level. The meeting will take place in Vienna on | :06:14. | :06:20. | |
the 30th of November. There are a number of nations which require | :06:21. | :06:24. | |
volumes in addition to the prevailing oil price in order to | :06:25. | :06:26. | |
maintain and meet their budgets domestically. A reluctance from the | :06:27. | :06:33. | |
likes of Iraq, Nigeria, Iran to be a part of those cuts. | :06:34. | :06:40. | |
Activity in China's manufacturing sector has expanded at a faster pace | :06:41. | :06:47. | |
than expected in October, adding to views that the world's | :06:48. | :06:53. | |
second-largest economy is stabilising thanks | :06:54. | :06:55. | |
The official Purchasing Managers' Index stood at 51.2 in October, | :06:56. | :07:03. | |
compared with the previous month's 50.4, and above the 50-point | :07:04. | :07:08. | |
mark that separates growth from contraction. | :07:09. | :07:11. | |
It's a week for central-bank meetings, and the latest | :07:12. | :07:14. | |
to announce its decision is the Bank of Japan. | :07:15. | :07:17. | |
No surprises this time, it's kept its existing level | :07:18. | :07:20. | |
of asset purchasing and interest rates, but it's reduced | :07:21. | :07:22. | |
its inflation forecast for next year to 1.5%. | :07:23. | :07:27. | |
In September, the Japanese central bank pledged to hit its 2% target | :07:28. | :07:31. | |
at the "earliest possible time", though inflation still remains | :07:32. | :07:35. | |
Lots of stories on our page, including an update on sterling. It | :07:36. | :07:52. | |
is following the news that we got late yesterday from the Bank of | :07:53. | :07:56. | |
England boss, saying he will stay in position until June 2019. Sterling | :07:57. | :08:01. | |
is up now slightly against the dollar. And against the euro. That | :08:02. | :08:07. | |
gives a sense of the markets breathing a sigh of relief. The | :08:08. | :08:11. | |
announcement came at 6pm London time yesterday. | :08:12. | :08:17. | |
We will talk more about that yesterday -- later, especially to do | :08:18. | :08:21. | |
with timing and the UK leaving the EU. | :08:22. | :08:23. | |
Sony's profits have taken a dive in the second quarter. | :08:24. | :08:28. | |
Dramatic numbers. Explain this for us. We have seen tough times. Really | :08:29. | :08:44. | |
bad numbers coming in from Sony. This is largely due to the soaring | :08:45. | :08:49. | |
value of the Japanese currency. Over the last few years Japanese | :08:50. | :08:52. | |
companies have benefited from a weak yen, it has made that products | :08:53. | :08:57. | |
cheaper overseas, but since the uncertainty over Brexit, nobody | :08:58. | :09:02. | |
expected it, investors have rushed to pick up the game, because it is | :09:03. | :09:07. | |
seen as a safe bet. That has pushed the value higher, even from earlier | :09:08. | :09:11. | |
in the year, when we saw the negative interest rate policy pushed | :09:12. | :09:17. | |
in, people rushed to the yen and pushed it higher, which means that | :09:18. | :09:20. | |
now it is more expensive than ever before to purchase the firm's | :09:21. | :09:25. | |
products overseas, and that is why you are seeing such bad numbers | :09:26. | :09:31. | |
coming out of Sony. The news coming after the trading day finished in | :09:32. | :09:37. | |
Japan. Japan up slightly. Shanghai and Hong Kong given a massive boost | :09:38. | :09:40. | |
in the manufacturing data coming out of China. No change from the bank of | :09:41. | :09:46. | |
Japan to do with its policy. No change from Australia either. They | :09:47. | :09:55. | |
also have their meeting. BP and Shell dominating in Europe. We saw a | :09:56. | :10:02. | |
chart with oil share prices, because not updated, and nor are these! It | :10:03. | :10:08. | |
is not possible they are all on zero! Our data is not working. But | :10:09. | :10:17. | |
BP shares are down around 1% of the back of their earnings, but Shell | :10:18. | :10:21. | |
opening up nearly 4% higher. That gives you a sense of how markets are | :10:22. | :10:23. | |
digesting the news. And Michelle has the details about | :10:24. | :10:25. | |
what's ahead on Wall Street today. Third-quarter earnings season rolls | :10:26. | :10:36. | |
on. On Tuesday the biggest name in the spotlight is the pharmaceutical | :10:37. | :10:41. | |
giant Pfizer. The largest drugmaker in the US beat rivals in a bidding | :10:42. | :10:48. | |
war to acquire medication in August. Investors want an update on how the | :10:49. | :10:54. | |
takeover is working out. Also, Kellogg are reporting, it's over | :10:55. | :10:59. | |
seals sales are forecast to have fallen, thanks to the weakness of | :11:00. | :11:04. | |
currencies in key South American markets, and the important market of | :11:05. | :11:06. | |
the UK, with its much weakened sterling. The other big market event | :11:07. | :11:13. | |
that we issue will generate no news is the latest meeting of the Federal | :11:14. | :11:17. | |
Reserve's open market committee. It meets the two days, and everybody | :11:18. | :11:22. | |
expects business rates -- interest rates to stay on hold, at least this | :11:23. | :11:23. | |
time. Our market numbers may not be | :11:24. | :11:28. | |
working, but Simon is! Yesterday Mark Carney was the story, | :11:29. | :11:45. | |
how long would he extend his stay. He is going to stay for another year | :11:46. | :11:50. | |
beyond the five years, but it is not the full term. It is fascinating. | :11:51. | :11:55. | |
When he came into the role, he talked about only staying in for | :11:56. | :12:02. | |
five years and staying until 2018. Then there was talk about taking the | :12:03. | :12:07. | |
full term and going until 2020. Most people's expectations were that he | :12:08. | :12:13. | |
would serve the full term. There has been a lot of negative comments | :12:14. | :12:19. | |
aimed at him in recent weeks from Conservative politicians, columns | :12:20. | :12:22. | |
written in newspapers, there was a sense he was come under increasing | :12:23. | :12:26. | |
pressure. Interesting last week we heard the slightly ambiguous comment | :12:27. | :12:34. | |
from -- and the sense he would make a statement this week. What is | :12:35. | :12:38. | |
interesting, it is a half and half, by only going one year. He has that | :12:39. | :12:47. | |
2018 will be the darkest point in the negotiations, so he has said, | :12:48. | :12:51. | |
you need a safe pair of hands, but going to 2019, he is saying, as soon | :12:52. | :12:57. | |
as we have got out of the woods, I am off. Maybe that is a measure of | :12:58. | :13:04. | |
the political criticism. Neither too hot nor too cold. Sterling reacted | :13:05. | :13:09. | |
on the back of that, but the lack of a big recovery in sterling tells you | :13:10. | :13:18. | |
investors see what he is doing. It is an enormous week, we have the | :13:19. | :13:23. | |
Federal Reserve decision, the Bank of England this week, the bank of | :13:24. | :13:27. | |
Japan today, so many earnings stories, and we have an American | :13:28. | :13:31. | |
election next week, so there will be a lot of inactivity. The Federal | :13:32. | :13:35. | |
Reserve is highly likely to move on interest rates. They will wait until | :13:36. | :13:41. | |
December. Interestingly, over the past few weeks, markets have | :13:42. | :13:47. | |
factored in a Hillary Clinton victory. With the shift over the | :13:48. | :13:55. | |
weekend, the comments coming out, the prediction markets are moving | :13:56. | :14:00. | |
sharply the other way, they now have only a 70% chance of Hillary Clinton | :14:01. | :14:05. | |
Winick. What is fully priced in suddenly looks at risk. It is giving | :14:06. | :14:08. | |
you busy! Something has been! The inside track on 50 years | :14:09. | :14:14. | |
in the entertainment business. The nightclub mogul | :14:15. | :14:17. | |
Peter Stringfellow joins us later to talk clubs, | :14:18. | :14:19. | |
cocktails and Brexit. You're with Business | :14:20. | :14:21. | |
Live from BBC News. Business confidence rose | :14:22. | :14:29. | |
in the three months to October, according to the latest assessment | :14:30. | :14:34. | |
from the CBI. Exporters saw the largest boost | :14:35. | :14:38. | |
in confidence as they cashed Theo Leggett is in our | :14:39. | :14:42. | |
business newsroom. We could be forgiven for thinking | :14:43. | :14:54. | |
business would be pessimistic, given the uncertainty around the | :14:55. | :14:57. | |
referendum and the vote to leave the EU, but not so? Absolutely. This is | :14:58. | :15:06. | |
a survey of over 400 small and medium enterprises, the companies | :15:07. | :15:09. | |
which were a bit more keen on leaving the EU than their big | :15:10. | :15:13. | |
business colleagues. What this survey has shown is that a small | :15:14. | :15:16. | |
increase in overall confidence, you expect that, because there was a lot | :15:17. | :15:23. | |
of uncertainty, but the big area where confidence is increasing is | :15:24. | :15:28. | |
related to export. Let's go to my chart, which is working. This shows | :15:29. | :15:33. | |
what happened to sterling over the past month alone. A big fall at the | :15:34. | :15:39. | |
beginning of the month. That is on top of falls earlier in the year. It | :15:40. | :15:45. | |
is looking up for small businesses who export, because their products | :15:46. | :15:47. | |
when purchased overseas will be cheaper. But there is a downside. | :15:48. | :15:54. | |
Things coming into this country that manufacturers need, they are getting | :15:55. | :15:56. | |
more expensive, so unit costs are more expensive, so unit costs are | :15:57. | :16:00. | |
rising. It is a two-way street, it is good news if you are an exporter, | :16:01. | :16:07. | |
if you import products, it is not so good. The other problem is they are | :16:08. | :16:11. | |
struggling to recruit enough qualified staff. They struggling | :16:12. | :16:17. | |
more than they have done at any time since 2007. The picture is | :16:18. | :16:20. | |
confidence is increasing, export confidence in particular, but costs | :16:21. | :16:26. | |
are rising and well-qualified staff can sometimes be hard to find. | :16:27. | :16:32. | |
you. Let me take you to a story on the live page. This may not come as | :16:33. | :16:45. | |
a surprise to employers. 80% of school leavers lack essential | :16:46. | :16:49. | |
business schools. This is a story from the chartered Institute of | :16:50. | :16:56. | |
accountants. That is actually worse than last year, when it was 75%. | :16:57. | :17:02. | |
There is clearly a question about what people are being taught in | :17:03. | :17:06. | |
schools and whether it is relevant for the world of work. | :17:07. | :17:07. | |
Profits at oil giant BP have fallen 48% compared to this time last year | :17:08. | :17:12. | |
as the firm grapples with the flagging price of crude. | :17:13. | :17:17. | |
Meanwhile, Shell has beaten market expectations with a rise in profits, | :17:18. | :17:21. | |
but it says that capital expenditure will be towards the lower end | :17:22. | :17:24. | |
For you and me, they will spend less on things like exploration. | :17:25. | :17:42. | |
Now, our next guest needs little introduction... | :17:43. | :17:44. | |
He's a mainstay of the British clubbing scene spanning 50 years. | :17:45. | :17:47. | |
He is the nightclub mogul Peter Stringfellow. | :17:48. | :17:50. | |
Now in his mid-70s, Peter Stringfellow is a self-made | :17:51. | :17:55. | |
multimillionaire who has been running nightclubs and gentlemen's | :17:56. | :17:57. | |
with the likes of Prince, Marvin Gaye, Rod Stewart Tom Jones | :17:58. | :18:05. | |
Not content with the business of partying - | :18:06. | :18:12. | |
Stringfellow also dabbles in politics and has donated tens | :18:13. | :18:15. | |
of thousands of pounds to the UK Conservative Party - | :18:16. | :18:19. | |
recently noting his admiration for Prime Minister Theresa May. | :18:20. | :18:21. | |
Originally a strong supporter of the UK remaining | :18:22. | :18:23. | |
IN the EU, He now says he wants to make the most of the UK's | :18:24. | :18:27. | |
decision to leave, saying "it's more romantic to be for Brexit". | :18:28. | :18:30. | |
Good morning. There is so much to talk about but for the benefit of | :18:31. | :18:48. | |
our viewers and around the world, tell us how it began. Quite an | :18:49. | :18:52. | |
amazing story about the hiring of a hall on a Friday night and signing a | :18:53. | :18:59. | |
little-known band called The Beatles. I left school when I was -- | :19:00. | :19:09. | |
in the 1950s, when I was 21, I started looking at church hall in | :19:10. | :19:20. | |
Sheffield. On Fridays, it cost me ?3, and a new record came out cold | :19:21. | :19:30. | |
Love Me Do and some girl said, what about this record. Nobody bothered | :19:31. | :19:34. | |
with records because you could hardly hear them. So I booked The | :19:35. | :19:38. | |
Beatles, it took us three days to negotiate it, ?85. I came out | :19:39. | :19:44. | |
sweating, I thought, I can always cancel them. Luckily I did not. Come | :19:45. | :19:52. | |
February, their record was number one, they played for me on that week | :19:53. | :20:05. | |
and the rest is history. Spin forward 50 years. Let's talk about | :20:06. | :20:10. | |
the market you find yourself in now. You could create an industry from | :20:11. | :20:13. | |
nothing. Now it's a difficult industry to be in. You can still | :20:14. | :20:25. | |
rent a hall and put a band on. You've got to start somewhere. I was | :20:26. | :20:33. | |
a disc jockey for 20 years. By the way, I was fantastic. You've got to | :20:34. | :20:37. | |
live it like I did and it cannot be a part-time job. When I started with | :20:38. | :20:43. | |
my church hall, within the second Friday I'd booked in an outfit which | :20:44. | :20:50. | |
made me ?65. Sheffield had never seen this group. Fantastic. Once you | :20:51. | :20:57. | |
start that kind of thing, I live that life. I did not do anything | :20:58. | :21:01. | |
else and I've never done anything else since. Nightclubs for me. What | :21:02. | :21:06. | |
is the future? I understand you're looking into virtual reality. Very | :21:07. | :21:16. | |
much. There's always something happening here that other countries | :21:17. | :21:26. | |
come and look at. I had someone who wants to come into London. There is | :21:27. | :21:36. | |
something special about where we live and we can do it. As far as I'm | :21:37. | :21:46. | |
concerned. I was four Remain but we cannot go back to that. We are | :21:47. | :22:00. | |
Brexit. You spoke about the future and adapting to the way people go to | :22:01. | :22:08. | |
nightclubs. A lot of people say people prefer to stay inside and | :22:09. | :22:14. | |
nightclubs are dead. That has fundamentally changed. That is how | :22:15. | :22:34. | |
it happens, it was Strictly Come Dancing kind of stuff, I was | :22:35. | :22:42. | |
bringing people from America. Rod Stewart. All it went. Brand-new | :22:43. | :22:46. | |
stuff, you did not know where you're going, it is like that today, we | :22:47. | :22:51. | |
don't know where we are going. So what? There will always be people | :22:52. | :22:54. | |
who want to be together and see each other. Culturally, things have | :22:55. | :23:00. | |
changed significantly. Gentleman is clubs are no longer viewed in the | :23:01. | :23:04. | |
same way they were 30 years ago. When I started it was outrageous and | :23:05. | :23:12. | |
that was 1996, they are accepted now and I'm very happy about that. It is | :23:13. | :23:19. | |
really good to speak to you. We've only scratched the surface. Come | :23:20. | :23:25. | |
back and talk to us soon. I want to hear about virtual reality | :23:26. | :23:34. | |
nightclubs as well. Do stay with us but in the meantime here is how to | :23:35. | :23:46. | |
stay in touch. You can stay with us and all the latest news on the BBC | :23:47. | :23:51. | |
website. We want to hear from you. Get involved on the BBC business | :23:52. | :23:52. | |
live web page. What other business | :23:53. | :24:10. | |
stories has the media been The BBC's Dominic | :24:11. | :24:12. | |
O'Connell is with us. This is a great story. The Saudi | :24:13. | :24:21. | |
king appoints a new finance minister. It tells us a lot about | :24:22. | :24:27. | |
the oil prices. With them we are seeing the corporate pain but the | :24:28. | :24:32. | |
real pain is countries that rely on it. It has been running down its | :24:33. | :24:37. | |
reserves at a rate of knots and trying to rebuild the economy. One | :24:38. | :24:42. | |
of the visible symbols has been the remaking of the Cabinet. The finance | :24:43. | :24:48. | |
minister has only been in the job for 20 years. Sony has just done one | :24:49. | :24:57. | |
of the biggest bond issues in history, $7.5 billion. Timing is | :24:58. | :25:11. | |
everything. Interestingly announcers before a bond issue. Replacing the | :25:12. | :25:19. | |
oil minister, who had been there for 20 years, the new Crown Prince | :25:20. | :25:24. | |
trying to remake the economy so it is not reliant on oil. There is a | :25:25. | :25:29. | |
big jump to be made there. Your take on Mark Carney. He will stay until | :25:30. | :25:33. | |
2019. It's about the best compromise, I suspect. George | :25:34. | :25:43. | |
Osborne, remember, he did not fill out a job application for eight | :25:44. | :25:50. | |
years. Probably about right. Thank you for your company. That's another | :25:51. | :25:55. | |
business live. We will see you again tomorrow. | :25:56. | :26:13. | |
It is time to reorganise the wardrobe. After | :26:14. | :26:15. |