Browse content similar to 04/02/2016. Check below for episodes and series from the same categories and more!
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Now for the latest financial news with Sally | :00:00. | :00:00. | |
Oil prices soar as the dollar slumps. | :00:00. | :00:19. | |
Have traders finally seen the bottom of the barrel? | :00:20. | :00:25. | |
Plus, communication error: The Bank of | :00:26. | :00:26. | |
England gives its quarterly report later, but is guidance from central | :00:27. | :00:29. | |
Also coming up, the Trans-Pacific Partnership is | :00:30. | :00:38. | |
Some investors are even daring to call the bottom of the market now, | :00:39. | :01:19. | |
That's wiped out all of this week's losses. | :01:20. | :01:27. | |
Several reports are suggesting OPEC and non-OPEC countries could be | :01:28. | :01:32. | |
planning an emergency meeting to try and cut oil production. | :01:33. | :01:34. | |
But a bigger reason is this: the plunge in the value of the US | :01:35. | :01:49. | |
Remember, oil is priced in dollars so a weaker dollar makes it more | :01:50. | :01:53. | |
So the biggest question, has the oil market found the bottom? | :01:54. | :02:23. | |
A big rise, but still uncomfortably low for many in the industry. | :02:24. | :02:36. | |
Certainly, the oil is low and I would expect it to stay there for | :02:37. | :02:47. | |
some time. There is too much supply, there has been for some time, and | :02:48. | :02:51. | |
there are some question marks over demand. Those two things have to | :02:52. | :02:55. | |
match, and I think the big thing we have learned in the past is that it | :02:56. | :03:01. | |
takes time for supply to stabilise and allow the gap between supply and | :03:02. | :03:06. | |
demand to close. So it will take a bit of time, so I think we are back | :03:07. | :03:10. | |
to a period of relatively low prices, much as we had in 1986 - | :03:11. | :03:20. | |
2004, a 17 year period, where the price was about 30-$35 in real | :03:21. | :03:23. | |
terms. Lord Browne, | :03:24. | :03:27. | |
former boss of BP there. We will have the latest results | :03:28. | :03:29. | |
from rival Shell later. Of course it's not just oil | :03:30. | :03:31. | |
companies struggling with low crude prices, oil producing nations | :03:32. | :03:34. | |
from Russia to Algeria to Venezuela Our reporter Abdujalil Abdurasulov | :03:35. | :03:37. | |
sent this from Kazakhstan. Kazakhstani has always been a | :03:38. | :03:52. | |
country with high ambitions. Just recently it was bidding to host the | :03:53. | :03:57. | |
Winter Olympic Games and planned to join the top 30 most developed | :03:58. | :04:01. | |
countries in the world. Luxury lifestyle became a symbol of the | :04:02. | :04:07. | |
booming economy, but that was when oil prices were high. The day of the | :04:08. | :04:12. | |
shopping spree is clearly over. We see that the absolute wealth of the | :04:13. | :04:15. | |
people is decreasing, and it will over the next two years. So we think | :04:16. | :04:26. | |
that the buying in US dollar will decrease, but we don't know to what | :04:27. | :04:31. | |
extent. The extent can be very serious, because 70% of revenues | :04:32. | :04:38. | |
come from oil sales, and when oil prices fall, the entire economy is | :04:39. | :04:43. | |
affected. TRANSLATION: When oil prices are high budget revenues are | :04:44. | :04:47. | |
high. The government starts spending on investment project. As a result | :04:48. | :04:51. | |
the construction sector starts growing, pushing the banking sector | :04:52. | :04:55. | |
up as well. That provides cheap credit to companies and consumers, | :04:56. | :05:00. | |
new jobs are created and people earn more and consumption grows. With | :05:01. | :05:08. | |
increased consumption, increased production also grows. That is how | :05:09. | :05:14. | |
we get a bubble. At the moment, the bubble has exploded. Investment | :05:15. | :05:16. | |
projects have halted, the banking sector is in crisis. Companies are | :05:17. | :05:21. | |
losing profit because people spend less, and as a result the economy is | :05:22. | :05:27. | |
struggling. In 2015, economic growth slowed down to 1.5%. The current | :05:28. | :05:34. | |
account balance dropped to -3%. The currency lost half of its value. The | :05:35. | :05:39. | |
budget deficit increased because of the fall in oil revenues. To fix | :05:40. | :05:52. | |
this situation, the country must fix its currency, and they may find it | :05:53. | :05:55. | |
difficult to finance this project. We are also looking at the Bank | :05:56. | :05:58. | |
of England. It gives its quarterly inflation | :05:59. | :06:00. | |
report later when it's also expected Just a matter of weeks ago | :06:01. | :06:03. | |
its governor Mark Carney was preparing us for higher UK interest | :06:04. | :06:07. | |
rates, now he has signalled that's Dominic Rossi is Chief Investment | :06:08. | :06:11. | |
Officer of Fidelity, one of He says it's not just the Bank | :06:12. | :06:15. | |
of England that has failed in its communication, | :06:16. | :06:19. | |
but all the major central banks. They have consistently understated | :06:20. | :06:33. | |
the disinflationary forces in the world economy. If you look at the | :06:34. | :06:36. | |
ECB, the Bank of England, the Chinese and the Fed, they have all | :06:37. | :06:41. | |
consistently over egged their inflation forecast, and they have | :06:42. | :06:49. | |
been too aggressive in their communication strategy around future | :06:50. | :06:52. | |
interest-rate hikes, and we are constantly seeing them grow back. | :06:53. | :07:02. | |
While it is wise that they do row back, Vieira in the first place | :07:03. | :07:06. | |
causes a certain amount of damage, and I think that is one reason why | :07:07. | :07:09. | |
equity markets have been so unsettled in recent weeks. | :07:10. | :07:11. | |
The vast Trans-Pacific Partnership trade deal, or TPP, | :07:12. | :07:13. | |
has been formally signed in the New Zealand capital Auckland. | :07:14. | :07:16. | |
The US-led deal aims to free up trade and investment between the 12 | :07:17. | :07:19. | |
countries across the Pacific Rim, including Singapore, Australia, | :07:20. | :07:21. | |
Together they account for about 40% of the global economy. | :07:22. | :07:25. | |
However President Obama has struggled to get | :07:26. | :07:27. | |
And there have been protests by those who claim big business | :07:28. | :07:30. | |
will profit at the expense of small farmers and workers. | :07:31. | :07:58. | |
Rico Hizon has been following the story for us in Singapore. | :07:59. | :08:01. | |
It is a done deal? They signed it at the ceremony in New Zealand, the | :08:02. | :08:14. | |
second half of it, it says that there are two years to ratify this | :08:15. | :08:19. | |
trade arrangement. And if only ten nations ratified without Japan and | :08:20. | :08:23. | |
the US, unfortunately it will not be enforced. It needs both economic | :08:24. | :08:32. | |
powers to improve it, and then Congress will support it. Earlier I | :08:33. | :08:38. | |
spoke to the New Zealand trade minister, and I asked him why | :08:39. | :08:43. | |
critics say corporations are the winners and ordinary workers are the | :08:44. | :08:49. | |
losers. It is fair to say that there are a number of people who have | :08:50. | :08:52. | |
different views from the governments who have negotiated this agreement. | :08:53. | :08:58. | |
In the case of New Zealand, this is of significant net benefit to us. | :08:59. | :09:05. | |
The central bank did a study on short time ago, and forecast | :09:06. | :09:07. | |
economic benefits for all of the countries. New Zealand have been | :09:08. | :09:13. | |
placed about fourth best off in terms of benefits, and some of them | :09:14. | :09:19. | |
are more significant than the assessment our government has done. | :09:20. | :09:24. | |
There are also ideas that this will mean higher prices for products that | :09:25. | :09:32. | |
are subject to longer copyright periods and more stringent patents. | :09:33. | :09:36. | |
Sumner Redstone has stepped down as executive chairman | :09:37. | :09:41. | |
He will be replaced by president and chief executive Leslie Moonves. | :09:42. | :09:44. | |
There is now speculation that Mr Redstone will also step down as | :09:45. | :09:47. | |
chairman of Viacom, which owns MTV, Nickelodeon and other media assets. | :09:48. | :09:50. | |
Mr Redstone, who is 92, has been facing questions | :09:51. | :09:52. | |
and legal action around his ability to lead the companies. | :09:53. | :09:55. | |
Mr Redstone owns an 80 percent voting stake in CBS | :09:56. | :09:57. | |
The former head of the International Monetary Fund, Dominique | :09:58. | :10:03. | |
Strauss-Kahn is joining the board of a bank owned by Ukrainian | :10:04. | :10:06. | |
Mr Strauss-Kahn resigned as IMF managing director in 2011, | :10:07. | :10:09. | |
after being accused of a rape at a New York hotel, allegations | :10:10. | :10:12. | |
He will join a newly-formed supervisory board | :10:13. | :10:14. | |
Here are the markets, they are still headed higher. The only market | :10:15. | :10:40. | |
headed south as Japan, and that is because the yen is much stronger. A | :10:41. | :10:47. | |
mixed and to the day on Wall Street. People quite concerned about some | :10:48. | :10:49. | |
economic news out of the US. | :10:50. | :11:01. |