19/09/2016 World Business Report


19/09/2016

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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

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Britain is lagging behind the US when it comes to creating world

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We'll meet one entrepreneur who thinks he knows the way forward.

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Also in the programme: We hear from the boss of the drugs giant

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We start with one of the biggest issues facing businesses

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and individuals around the world, climate change.

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It seems as if we're about to see a major change in the way

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The United Nations says at least 20 more countries have indicated

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they will join the Paris climate change agreement later this week,

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raising hopes the deal will enter into force by the end of 2016.

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In the past month, the United States, China and Brazil

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have all ratified their participation

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in the Paris agreement and promised to cut back on greenhouse

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So far, 27 countries have already joined the climate deal.

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The Paris agreement will only come into force when 55 countries

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representing at least 55% of global emissions have formally joined it.

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Countries set their own targets for reducing emissions.

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However, questions still remain about ending fossil fuel subsidies

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So far, there has been little commitment to phase them out.

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Kate Levick is Director of Policy and Regulation at CDP,

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which runs a environmental disclosure scheme for companies

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Good morning, Kate. Thanks for coming in. It is encouraging that 20

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more countries are set to sign this accord by the end of the weak baht

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to what extent are businesses ready for this? That is right, Sally, it

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is very encouraging -- at the end of the week but to what extent. That is

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after the UN event in New York. What this will mean is there will be a

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global level playing field for companies. This will mean that the

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almost 200 countries which have signed up to the Paris agreement

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will be legally bound to fulfil their commitments which include

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ambitious emissions reductions on a global level and this will have a

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far-reaching effect on industrial sectors around the world and on

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national and international companies in many countries. Many businesses

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have seen this coming and some have been more prepared than others, some

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have changed significantly. Which have led the way? Those that have

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disclosed information to that investors through CDP have shown

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they are factoring this into their business strategy. More on 600

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companies have said they are doing so, these are major listed

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companies. That is about one third of companies since Paris. There are

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two thirds who still have to work this into their business plan. We

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are calling on them to take notice. I understand that the companies that

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have made some headway and have tried to shift are the energy and

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utility companies, which many would see as old traditional burners of

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fossil fuels. Talk us through that. That is right. The sectors with the

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most awareness and leadership are the energy and utilities sectors. We

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see leading examples of company practice in every sector. There are

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some high emitting sectors where we don't see so much action. At CDP we

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have identified, for example, 500 companies which do not say they are

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using an internal price on carbon to take business decisions even though

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they are in geographies with a carbon price regulation or one

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expected soon. We have run out of time, but thank you for your

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expertise this morning. And, of course, keep Anae on the website as

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we hear from the countries who decide to join up and sign up to the

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Paris accords -- an eye. The boss of the drugs giant

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GlaxoSmithKline has told the BBC that the company is working under

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the assumption that Britain won't be be part of the single European

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market once the country Andrew Witty says he doesn't expect

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any change to the UK's trading status for the next couple of years

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but that the company is planning its strategy around

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the UK eventually being outside Of course, there is a lot of talk

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and uncertainty, and that might have some effect on some parts of the

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economy but for a company like GSK nothing has changed. That is quite

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important to understand. It is unlikely for anything to change for

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two years until Article 50 is executed and negotiated. When that

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process begins and when it concludes, the areas we are

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interested in and directly impacts will to ask our regulatory. So what

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will the UK's relationship be? Will we have more regulation or not? We

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don't know yet. We are putting thoughts and ideas around that and

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we are looking forward to that. And the second question is if we will be

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in the single market in any shape of form and we say no. It would look

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something like a WTO environment with FTAs without the single market.

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That is the working hypothesis for the moment. Interesting, that was

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the boss of GlaxoSmithKline. In other news: British business

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confidence has fallen to a four-year Its survey says confidence has been

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dented by economic uncertainty and a slowdown in demand

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following the EU referendum. The services sector

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was the worst affected. More than a quarter of all companies

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surveyed said that uncertainty was the main threat to growth over

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the next six months. Samsung has offloaded its stake

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in four technology companies, including Japan's Sharp,

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in order to free up money to focus The South Korean tech giant is mired

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in a major recall of its flagship Galaxy Note 7 smartphone over

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a series of battery explosions. It's being reported the value

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of the stakes sold totals around If I asked you to think

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of a global technology company, the odds are the name you'd come up

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with would be American. We're starting a special

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look at tech talent, and today we're meeting a man who's

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app is just two weeks old. I think it is fair to say that US

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companies are encouraged to think globally from day one, certainly

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more so in the UK I think if you go to a conference in the US you will

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get laughed off the stage if you don't have an international

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expansion plan. If you do that in the UK you would be laughed off the

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stage. It reflects the difference between the US and the UK. In the UK

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we have had questions on growing the team fast. And that is reflective of

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the difference between the US and the UK at the moment. And I think it

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is especially good to see companies such as Transfer Wise and Deliveroo

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deliver globally. The more role models in the companies like that,

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the better the ecosystem. That is part of the focused through the

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week, so stay focused as we look into the issue of tech talent in the

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UK. Some worrying news about

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the Chinese banking sector. Sharanjit Leyl has

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more from Singapore. What is going on? That is right,

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Sally. There is the risk of a Chinese banking crisis, that is

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according to the bank for international settlements. They say

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debt to GDP is triple the level considered to be a potential danger.

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The credit to GDP gap hit 30.1 in the first quarter of 2016. Now, the

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health of the banking sector has long been a source of concern for

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financial markets since the financial crisis of 2008. There is

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being a huge boom in credit as the Chinese government has tried to spur

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flagging growth. Some of that lending hasn't been productive,

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according to the IMF. They estimate loans worth $1.3 trillion at risk of

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default. Because the system is owned and controlled by the government

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largely, those I have spoken to say the government would like to bail

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out the ranking sector if necessary. So it is not a big a worry as it

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might appear. Super, thank you so much. See you soon. In the markets,

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Japan closed for a public holiday. And a bit of a stronger yen. I will

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see you soon. The water regulator, Ofwat,

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is to publish proposals

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