14/04/2016 World Business Report


14/04/2016

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Now for the latest financial news with

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A slumping share price, thousands of jobs cut

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So, does the boss of BP really deserve a 20% pay rise?

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Trouble in the pipeline at the oil giant's shareholder meeting.

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Plus, the nuclear option - only smaller.

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Are mini-reactors part of our low carbon future,

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Also in the programme: Emergency measures in Singapore to weaken

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Rico is all over this for us and will join us in a moment.

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We start here in London where in a few hours' time oil giant BP faces

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That's because of growing anger over how much the boss is being paid.

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Let's take a look at the numbers, which for many people simply don't

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Last year, BP reported the company's biggest ever loss,

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of $6.5 billion, as it struggled with the plunge in oil prices.

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That's forced it to make massive job cuts, over 7,000 workers,

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or 9% of its workforce, will go by the end of next year.

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So, here's what has really got shareholders hot under the collar.

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Last year, BP chief executive Bob Dudley actually saw his pay jump

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BP's shareholders haven't had nearly such a good year.

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If you take a look at BP's shares over the past 12 months,

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They have lost almost a quarter of their value, over 23%,

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And if BP needed any more awkward numbers, how about this one?

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The boss of arch rival Shell, Ben van Beurden,

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saw a huge cut in his pay package last year, down 77% to just over

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$5.5 million, a little over a quarter of what Mr Dudley made.

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Catherine Howarth is the chief executive of Share Action,

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which advises pension funds on ethical investment.

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It is good to have you in this morning. So, how will this meeting

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go? It will be a rough ride for the board of BP. Once per year they have

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to face the music. It is a fantastic opportunity for people with shares

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in BP to grill the board and that is what will happen. Many investors

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have said they are against the remuneration package. Absolutely.

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Aberdeen Asset Management and Royal London are voting against the

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report. Other shareholders have said the same. We will see very

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significant numbers in terms of the revolt on pay. It is not the only

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issue. There are a wide range of things to be raised at the meeting.

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The whole question of sentiment and morale is crucial for the success.

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7000 people lost its job. It is tone deaf to put in place a 20% pay rise.

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There are other issues. An upset along the southern coastline of

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Australia around deep sea drilling plans in the great Australian bight.

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After their record of deep sea drilling in the Gulf of Mexico,

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people are concerned the company doesn't have... -- Great Australian

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Bite. People have flown across the world from Australia to make the

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board understand just how vigorously this is opposed in Australia. The

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company so far has not produced convincing oil spill response

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plans. It is an area of special marine interest with many endangered

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whales and so on. It doesn't make sense in the context of climate

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debate either. What of the argument that Bob Dudley came in at the

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height of the Gulf of Mexico disaster and has got them through

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this difficult time. The share price is down, oil prices have sunk, job

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losses, all of the majors, they are laying them off and you need a

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leader at this time. Perhaps he is that. He has overseen BT through

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very challenging periods. There is no question about it. He is very

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well-paid already. People are struggling what justifies the pay

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rise. Does it suggest a board out of touch with and stakeholders? I think

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you will see that in spades today at the AGM. Thank you so much for

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coming in and we will be a cross that AGM when it happens and we will

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let you know how it is. Staying with the energy business,

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and the highly controversial Its backers believe nuclear has

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a role to play alongside renewable energy in helping to meet future

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energy demand But nuclear power stations are

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hugely expensive and complex to build and investment

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is difficult to secure. Today companies from

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around the world meet in Atlanta Georgia to discuss what they

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see is the solution. Think nuclear, think big. These

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giants provide energy for millions but their size is a problem.

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Building replacements is often delayed and cost is overrun. Money

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men are nervous putting up cash for new nukes. Is the solution beneath

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the waves? The successful Pilares test missal from the USS Washington.

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Submarines have been powered by small reactors since the 1950s. Can

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small reactors provide energy on land? Yes, they can. This American

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firm is part funded by the US government, expecting to have the

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first mini nuclear reactor operating in the USA in 2025. It will be small

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enough to fit on the back of a lorry and most importantly it will be

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small enough to finance. Other firms in major countries are racing to

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build small reactors also and experts are excited. You can build

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them like aircraft engines, one after another, in a factory with

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quality controls, so you increase quality and reduce cost overall.

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Memories linger of nuclear promises in the past. They said it would

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cheap to meet it. Now, cost is undercut by solar and wind power and

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splitting atoms looks expensive as a way to get electricity. There is no

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evidence it will be cheaper. The cost of renewables are coming down

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and the cost of nuclear is going up. Small reactors are not without

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problems. In the UK we still have no way of safely storing long-term

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nuclear waste. And what's more small reactors won't be ready in time to

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solve the short-term climate change targets. Experts say that by 2030 or

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2040 mini nukes could play a significant role in supplying energy

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needs. Lots more on that online. Let's go to Asia now where Singapore

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has moved to boost Rico Hizon is there and is

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following the story. Challenging times for the

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Singaporean economy over the last year and now that the GDP figures

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are out, results show the economy was flat in the first quarter.

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Singapore's GDP rising 1.8% in the first quarter, the same growth

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compared to the previous quarter. The headache for the government is

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manufacturing. It contracted. Offsetting that you have

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construction and services expanding. Due to this data, the Singaporean

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central bank surprised markets, easing the currency policy, also

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known as the monetary authority. They used exchange rates to guide

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policy instead of interest rates like most global counterparts. So,

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the MAS forecast growth to be weaker than estimated and inflation will

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likely be at a slower pace. The dollar is around 1.36. Thank you so

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much. See you soon. In other news: A US appeals court

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has cleared Argentina to begin making payments on $9 billion

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of debt, rejecting claims The decision paves the way

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for the country to re-enter bond markets after more than a decade,

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following its default in 2001. Settling the country's debt default

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has been one of the main campaign promises made by

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President Mauricio Macri, who came 40,000 workers at US telecoms giant

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Verizon have gone on strike after contract negotiations failed

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to produce a settlement. The unions organising

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the action represent customer They have been without

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a contract since August and talks have stalled over Verizon's plan to

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cut healthcare and pension benefits Presidential candidate

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Bernie Sanders spoke at a protest in It is all going up for financial

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markets around the world. Japan, the Nikkei, 3% moments ago. Hong Kong is

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wrong. The yen is weakening. Japanese banks are doing well today

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off the back of better than expected news from JP Morgan, whose earnings

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were out yesterday and the Wall Street bank posted better than

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expected first-quarter profits, boosting the Dow. I just want to

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show you the main markets in the US because they had a really good

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session. You are up to date. I will see you in a moment when we look

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through the papers. Sally will be back for a look at the papers.

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