12/01/2016 World Business Report

Now for the latest financial news with Sally and World Business

The US starts exporting gas with the first shipment fuelling up

But with falling prices, how significant will it be for

We talk to the billionaire entrepreneur, Elon Musk, about the

He tells us Apple's move into the car industry is an open secret.

Rico Hizon joins us from Singapore to update us on Chinese trading. It

is a little bit,, you will be glad to hear. -- a little bit calmer, you

will be glad to hear. It's a landmark day

for gas production in the US because America becomes

an international supplier today. But the celebrations

could be short-lived. Like oil,

the price of gas has fallen sharply and is now worth only a third

of what it was just two years ago. So while the venture is less

financially viable than when it was originally imagined in 2011,

it is still hugely significant. Many estimates put the US

as the third largest exporter in It's worth noting that we're talking

about liquefied natural gas only, which is denser in a liquid than

a gas form, but requires costly LNG once returned to a natural gas

form can be used for almost anything from cooking, heating

a home to powering a factory. With me is Cornelia Meyer from

Meyer Resources. A very familiar face with this show.

Nice to see you. How big a deal is it? It is initially small. It is a

very small quantity. It is a big deal to see the US entering the

field of LNG exporter. The big players are Australia and Qatar. We

have had other entrants, such as Papua New Guinea. We will see

countries like Algeria, Russia, potentially. More people are

cramming into that space. America could do this with the shale

revolution. Absolutely. Back in 2007 -2008 we were worried that in 2010

they would import gas until the shale revolution. They are now

producing more than they can consume. So, they can export. The

energy information agency in the USA that I2040 they will be producing

something like 36 trillion cubic feet of gas -- by 2040. They are

only consuming about 27 trillion cubic feet. They have had room to

export. America is a big consumer of gas. The fact that prices are lower

is good for the American economy. Globally, with gas coming onto the

market from America and other places like Mozambique and Papua New

Guinea, is the price of gas a 1-way bet? No. The thing where LNG is

different from others is it has to have long-term supply contracts. You

finance LNG with a long-term contract. As the prices are falling,

a lot of countries are waiting. Utilities are waiting to commit. Why

would they commit when it could be lower in five months? Just quickly,

a question about the oil price closing yesterday at a 12 year low

and falling today. Your thoughts? It will get worse before it gets

better. Everybody is just pumping whatever they can. As I say, in the

long run we are all dead, but in the long run we are not investing

enough. In three to ten years we might not be producing enough. It is

not a light switch. We need to invest in future technology? In

future resources. Oil sources have a finite life. You need to have it

pumping. Lovely to see you. Back Monday to review the papers. See you

then. We will look at the markets later. Let's focus on what is going

on in China. China's markets are showing signs

of stabilising And as trade opened this morning,

the Chinese currency, the yuan, Nice to see you, Rico. What is

happening today? The Chinese authorities are doing what they can

to stabilise the Chinese yuan. They have injected a whopping $12 billion

US. Apart from that, the central bank has set another firm fix on the

yuan against the US dollar for a third time. The stock markets

tumbled 10% last week and 5% on Monday. They have remained volatile.

They have gone from black to read and back again. The People's Bank

has stepped up its campaign to convince many sceptical investors

that they are in control -- red. Analysts have said that offshore

buying, led by the central bank, has dried up yuan liquidity. One dealer

described this as in the nuclear weapon level. Authorities have

indeed stoked concerns in markets that Beijing might be losing its

grip on economic policy. We will have to wait and see. It may have a

long-term effect on the markets. Thank you.

In other news: Asia's richest man is buying US movie studio

Wang Jianlin, the founder of China's Dalian Wanda Group, is paying 3$.5

-- Wang Jianlin, the founder of China's Dalian Wanda Group, is

paying $3.5 billion for the film company, which

produced Jurassic World, Godzilla and the Dark Knight Batman trilogy.

The tycoon said he aims to help China have a bigger say

Irish drugmaker Shire has won its six-month battle to buy US firm

The deal is worth $32 billion, and will put Shire in a strong

position as it seeks to deepen its stake in rare disease treatments.

Baxalta specialises in unusual blood conditions, cancers

Now to a big name in the field of innovation.

A man known for increasingly making futuristic ideas a reality.

Elon Musk is Chief Executive of Tesla motors - a company that

grabbed headlines after its all-electric sport luxury cars.

His cars are also competing in the driverless space too.

But he has other ventures as well - one is SpaceX - an aerospace

company seeking not only to lower the cost of space travel but also

His net worth is $12.4 billion, making him the 39th wealthiest

Our technology correspondent Rory Cellan-Jones spoke to him

exclusively and started by asking him, how common will

All transport, except for rockets, will go fully electric. I see the

value of Tesla as an accelerant in future. From an historical

perspective, it may speed up the transition by a decade. Are you on

the road to making a model more people can aspire to own? The third

model is part of the strategy. It is a high-volume, low-cost car. We

expect production of that next year. In order to have a substantial

effect on transportation we have to make them affordable. The model

three is extremely important as part of that strategy. Unless there is an

affordable car, as you alluded to earlier, it will only have a small

impact on the world. We need to make a car most people can afford in

order to have a really substantial impact. Do you see Apple building a

car and is being a threat to you? -- it. I would encourage more

participation. From whoever it is to create electric vehicles. It is

quite hard to do. Companies like Apple will probably make a

compelling electric car. It seems like the obvious thing to do. Are

you betting that will happen? Have you heard anything? It is hard to

hide anything if you have hired 1000 engineers to do it. Apple is

serious? Yes. It is an open secret. More from him on the website. A look

at the Asian markets quickly. Japan is catching up today. It was closed

yesterday for a public holiday. The price of oil is going down further

to $30 a barrel. That is the close in Wall Street. And that is it for

World Business Report. See you soon. Junior doctors in England will go on

strike today for the first time in