Browse content similar to 19/09/2016. Check below for episodes and series from the same categories and more!
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Now for the latest financial news with Sally and World Business | :00:00. | :00:00. | |
Combating climate change, 20 more countries are set to join | :00:00. | :00:18. | |
Britain is lagging behind the US when it comes to creating world | :00:19. | :00:27. | |
We'll meet one entrepreneur who thinks he knows the way forward. | :00:28. | :00:35. | |
Also in the programme: We hear from the boss of the drugs giant | :00:36. | :00:43. | |
We start with one of the biggest issues facing businesses | :00:44. | :00:47. | |
and individuals around the world, climate change. | :00:48. | :00:49. | |
It seems as if we're about to see a major change in the way | :00:50. | :00:53. | |
The United Nations says at least 20 more countries have indicated | :00:54. | :01:01. | |
they will join the Paris climate change agreement later this week, | :01:02. | :01:04. | |
raising hopes the deal will enter into force by the end of 2016. | :01:05. | :01:08. | |
In the past month, the United States, China and Brazil | :01:09. | :01:15. | |
have all ratified their participation | :01:16. | :01:16. | |
in the Paris agreement and promised to cut back on greenhouse | :01:17. | :01:19. | |
So far, 27 countries have already joined the climate deal. | :01:20. | :01:23. | |
The Paris agreement will only come into force when 55 countries | :01:24. | :01:27. | |
representing at least 55% of global emissions have formally joined it. | :01:28. | :01:34. | |
Countries set their own targets for reducing emissions. | :01:35. | :01:36. | |
However, questions still remain about ending fossil fuel subsidies | :01:37. | :01:39. | |
So far, there has been little commitment to phase them out. | :01:40. | :01:50. | |
Kate Levick is Director of Policy and Regulation at CDP, | :01:51. | :01:53. | |
which runs a environmental disclosure scheme for companies | :01:54. | :01:55. | |
Good morning, Kate. Thanks for coming in. It is encouraging that 20 | :01:56. | :02:04. | |
more countries are set to sign this accord by the end of the weak baht | :02:05. | :02:08. | |
to what extent are businesses ready for this? That is right, Sally, it | :02:09. | :02:14. | |
is very encouraging -- at the end of the week but to what extent. That is | :02:15. | :02:20. | |
after the UN event in New York. What this will mean is there will be a | :02:21. | :02:26. | |
global level playing field for companies. This will mean that the | :02:27. | :02:30. | |
almost 200 countries which have signed up to the Paris agreement | :02:31. | :02:34. | |
will be legally bound to fulfil their commitments which include | :02:35. | :02:39. | |
ambitious emissions reductions on a global level and this will have a | :02:40. | :02:43. | |
far-reaching effect on industrial sectors around the world and on | :02:44. | :02:47. | |
national and international companies in many countries. Many businesses | :02:48. | :02:51. | |
have seen this coming and some have been more prepared than others, some | :02:52. | :02:55. | |
have changed significantly. Which have led the way? Those that have | :02:56. | :03:00. | |
disclosed information to that investors through CDP have shown | :03:01. | :03:04. | |
they are factoring this into their business strategy. More on 600 | :03:05. | :03:09. | |
companies have said they are doing so, these are major listed | :03:10. | :03:15. | |
companies. That is about one third of companies since Paris. There are | :03:16. | :03:21. | |
two thirds who still have to work this into their business plan. We | :03:22. | :03:25. | |
are calling on them to take notice. I understand that the companies that | :03:26. | :03:29. | |
have made some headway and have tried to shift are the energy and | :03:30. | :03:33. | |
utility companies, which many would see as old traditional burners of | :03:34. | :03:38. | |
fossil fuels. Talk us through that. That is right. The sectors with the | :03:39. | :03:44. | |
most awareness and leadership are the energy and utilities sectors. We | :03:45. | :03:50. | |
see leading examples of company practice in every sector. There are | :03:51. | :03:54. | |
some high emitting sectors where we don't see so much action. At CDP we | :03:55. | :04:00. | |
have identified, for example, 500 companies which do not say they are | :04:01. | :04:05. | |
using an internal price on carbon to take business decisions even though | :04:06. | :04:11. | |
they are in geographies with a carbon price regulation or one | :04:12. | :04:15. | |
expected soon. We have run out of time, but thank you for your | :04:16. | :04:19. | |
expertise this morning. And, of course, keep Anae on the website as | :04:20. | :04:23. | |
we hear from the countries who decide to join up and sign up to the | :04:24. | :04:25. | |
Paris accords -- an eye. The boss of the drugs giant | :04:26. | :04:27. | |
GlaxoSmithKline has told the BBC that the company is working under | :04:28. | :04:30. | |
the assumption that Britain won't be be part of the single European | :04:31. | :04:34. | |
market once the country Andrew Witty says he doesn't expect | :04:35. | :04:36. | |
any change to the UK's trading status for the next couple of years | :04:37. | :04:40. | |
but that the company is planning its strategy around | :04:41. | :04:43. | |
the UK eventually being outside Of course, there is a lot of talk | :04:44. | :04:56. | |
and uncertainty, and that might have some effect on some parts of the | :04:57. | :04:59. | |
economy but for a company like GSK nothing has changed. That is quite | :05:00. | :05:03. | |
important to understand. It is unlikely for anything to change for | :05:04. | :05:07. | |
two years until Article 50 is executed and negotiated. When that | :05:08. | :05:12. | |
process begins and when it concludes, the areas we are | :05:13. | :05:15. | |
interested in and directly impacts will to ask our regulatory. So what | :05:16. | :05:25. | |
will the UK's relationship be? Will we have more regulation or not? We | :05:26. | :05:30. | |
don't know yet. We are putting thoughts and ideas around that and | :05:31. | :05:37. | |
we are looking forward to that. And the second question is if we will be | :05:38. | :05:44. | |
in the single market in any shape of form and we say no. It would look | :05:45. | :05:51. | |
something like a WTO environment with FTAs without the single market. | :05:52. | :05:56. | |
That is the working hypothesis for the moment. Interesting, that was | :05:57. | :05:59. | |
the boss of GlaxoSmithKline. In other news: British business | :06:00. | :06:02. | |
confidence has fallen to a four-year Its survey says confidence has been | :06:03. | :06:05. | |
dented by economic uncertainty and a slowdown in demand | :06:06. | :06:09. | |
following the EU referendum. The services sector | :06:10. | :06:12. | |
was the worst affected. More than a quarter of all companies | :06:13. | :06:14. | |
surveyed said that uncertainty was the main threat to growth over | :06:15. | :06:17. | |
the next six months. Samsung has offloaded its stake | :06:18. | :06:20. | |
in four technology companies, including Japan's Sharp, | :06:21. | :06:22. | |
in order to free up money to focus The South Korean tech giant is mired | :06:23. | :06:25. | |
in a major recall of its flagship Galaxy Note 7 smartphone over | :06:26. | :06:30. | |
a series of battery explosions. It's being reported the value | :06:31. | :06:33. | |
of the stakes sold totals around If I asked you to think | :06:34. | :06:36. | |
of a global technology company, the odds are the name you'd come up | :06:37. | :06:47. | |
with would be American. We're starting a special | :06:48. | :06:51. | |
look at tech talent, and today we're meeting a man who's | :06:52. | :06:55. | |
app is just two weeks old. I think it is fair to say that US | :06:56. | :07:44. | |
companies are encouraged to think globally from day one, certainly | :07:45. | :07:48. | |
more so in the UK I think if you go to a conference in the US you will | :07:49. | :07:52. | |
get laughed off the stage if you don't have an international | :07:53. | :07:56. | |
expansion plan. If you do that in the UK you would be laughed off the | :07:57. | :08:00. | |
stage. It reflects the difference between the US and the UK. In the UK | :08:01. | :08:05. | |
we have had questions on growing the team fast. And that is reflective of | :08:06. | :08:10. | |
the difference between the US and the UK at the moment. And I think it | :08:11. | :08:18. | |
is especially good to see companies such as Transfer Wise and Deliveroo | :08:19. | :08:24. | |
deliver globally. The more role models in the companies like that, | :08:25. | :08:31. | |
the better the ecosystem. That is part of the focused through the | :08:32. | :08:36. | |
week, so stay focused as we look into the issue of tech talent in the | :08:37. | :08:38. | |
UK. Some worrying news about | :08:39. | :08:38. | |
the Chinese banking sector. Sharanjit Leyl has | :08:39. | :08:40. | |
more from Singapore. What is going on? That is right, | :08:41. | :08:50. | |
Sally. There is the risk of a Chinese banking crisis, that is | :08:51. | :08:53. | |
according to the bank for international settlements. They say | :08:54. | :09:00. | |
debt to GDP is triple the level considered to be a potential danger. | :09:01. | :09:07. | |
The credit to GDP gap hit 30.1 in the first quarter of 2016. Now, the | :09:08. | :09:11. | |
health of the banking sector has long been a source of concern for | :09:12. | :09:15. | |
financial markets since the financial crisis of 2008. There is | :09:16. | :09:20. | |
being a huge boom in credit as the Chinese government has tried to spur | :09:21. | :09:23. | |
flagging growth. Some of that lending hasn't been productive, | :09:24. | :09:28. | |
according to the IMF. They estimate loans worth $1.3 trillion at risk of | :09:29. | :09:35. | |
default. Because the system is owned and controlled by the government | :09:36. | :09:39. | |
largely, those I have spoken to say the government would like to bail | :09:40. | :09:43. | |
out the ranking sector if necessary. So it is not a big a worry as it | :09:44. | :09:47. | |
might appear. Super, thank you so much. See you soon. In the markets, | :09:48. | :09:51. | |
Japan closed for a public holiday. And a bit of a stronger yen. I will | :09:52. | :09:53. | |
see you soon. The water regulator, Ofwat, | :09:54. | :10:11. | |
is to publish proposals | :10:12. | :10:14. |