07/01/2016 World Business Report

The price of crude oil slumps to its lowest in

more than 11 years - despite growing tensions in the Middle East.

Plus - Netflix goes truly global - the video streaming service

launches in 130 new countries - we hear from the boss.

I hear I have nearly ten minutes. Nine minutes apparently, now. I will

give you an exciting snapshot of the world of business. And we will talk

about the Chinese shares slide. We start with oil,

and the slump in crude prices that Brent crude - the European benchmark

- plunged 6% on Wednesday to hit Brent crude

for February delivery closed in In Asian trade, it's continued

to fall closer to $33. It's

the first time that Brent has closed Just 18 months, ago oil was

well over $100 a barrel. It has now lost more than two-thirds

of its value in the past year The big reason - you don't need

reminding - the global supply glut. There's just too much oil

and not enough demand. Normally tensions in the Middle East

would push up prices. But traders say

the current row between Saudi and Iran - the two biggest players

in OPEC - means they won't be able And remember - more Iranian oil will

soon be hitting the market Our correspondent in New York Nada

Tawfik has been following the story. When I speak to traders, the real

question is how low can you go? People are already questioning how

much more lower it can go. It was predicted oil could he $20 a barrel

before this kind of oversupply gets cleared out and prices can start to

recuperate. Before the New Year, there was already concern about in

reining in oil entering the market when sanctions are lifted adding

about 600,000 more barrels per day, possibly, and other concerns. But

now we have had this to a political row with Iran and Saudi Arabia

weighing on concerns here. Traders think those two through OPEC will

not be able to come to an agreement to cut output in order to boost

prices. Miswin Mahesh is an Oil Analyst at

Barclays. Thank you for coming in at this time

of the morning. Let's start with the tension in the middle East. In the

past, we have seen prices rise. But four years ago, when those sanctions

were placed on Iran, stopping it from exporting oil, the Saudis came

in and stand up the market share. The Saudis will not give that back

freely? Know, and recent statements have been of the view they will step

in more when Iran comes back into the market, giving steeper discounts

to push their oil into an oversupplied market. Which will keep

pushing prices down. It has been an astonishing 18 months. Not too long

ago, many in the world were crying, we are running out of...! Now we are

running out of storage space for oil. People are planning on buying

tankers just to store oil? We are increasingly getting to that point.

We have more than enough should every oil plant the off-line. And

that plays a part in the price? Because if they can't store it, they

have to sell it? Demand is putting soft now because the Chinese story

is getting a bit of attention. That is having an effect as well. You

were talking to me before and mention the weather. In mild winter

is not helping the price? No, because that is one of the few

sources of support. Given how well the winter is, the heating oil use

has been weak. That is another factor when is much supply around.

Everybody loves you, but I have to wrap this up. I only get ten

minutes. Thank you. As you have been hearing,

shares in China have been suspended for the second time this week

after more steep losses. Let's go straight to Rico Hizon

in Singapore, Happy New Year. Happy New Year to

you as well. One of the big worries for investors is did we not see B

Central bank in China step in and bring the value of its currency

again? It does not bode well to suggest China's economy is not doing

well. That is one of the reasons why we sought the Chinese stock market

tank again this Thursday, and it has been a rollercoaster ride for

Chinese equities to start the new trading year. More gloomy economic

news affecting things. And confusion over initiatives put in place at the

government to stem stigmata bosses. This circuit breaker went into force

at the beginning of the year. -- stock market losses. I spoke to a

market analyst earlier and asked her whether the measure has stabilised

or created more panic among investors. There are a lot of

sceptical voices in the market. We also believe this circuit breaker is

doing more harm than good. What was expected for Tuesday was more panic

as we saw today, comes when people are not allowed to sell, tomorrow,

when the market opens, everyone will rush to self start that is a panic

reaction. -- cell because that is. The dropping of the currency by

another percentage point across the US dollar, is this impacting the

fall in equities? It creates a perfect storm. There is a fear of

further devaluation of the Chinese currency. It keeps outflow from

China, but the sellers in the equity market are creating more fear on the

currency side as well. On top of that, you do have great concerns.

The devaluation of the currency today, other currencies are also

falling. Domestic stock markets are tumbling as investors fear the Asian

giant was kicking off a giant trade war against its competitors. Thank

you. We are also

in Las Vegas, where we continue our coverage of CES - the world's

biggest Consumer Electronics Show - Record numbers of people are

expected to turn up to check out the latest technology.

Video streaming giant Netflix has been one of the tech world's huge

success stories in recent years. It used the event to announce

a massive global expansion - launching in 130 new countries

around the world. The news sent the company's

shares surging late on Wednesday. One very important country won't be

getting Netflix The BBC's Spencer Kelly spoke to

Netflix boss Reed Hastings We are so excited today to be

launching everywhere except China, though we hope to be able to have

Chinese consumers the able to watch Netflix. What do you have to do to

get into China? To go role models for us are Disney and bull Apple,

and they have been patient in developing their Chinese business.

They have woken -- worked on relationships first and business

second. We are taking our time. Whereas the Philippines will be

great for us, Korea, Singapore, India, Russia, Poland, Turkey, we

have a lot to work on. What are the main challengers? Is it broadband

speeds, relationships? It is producing more programmes. We have

them being produced around the world and expanding well beyond Hollywood.

We have a new movie in Korea. We have a crime thriller in Italy.

Another in France. It is connecting people with these amazing shows. Do

you think innovation in streaming services is done now? Or do you

think there is more work to be done on the technology and innovation?

There is so much work ahead. Think about it now, when you click and

heat the buffering. That is awful. It has to go away. Think about how

sometimes there is a suggestion that is not right for you. We have to fix

that. We have so much work to do we're now is spending $1 billion a

year to make the technology of Netflix better. You can see the

whole interview on Click. I will be back later.

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