11/12/2015 BBC Business Live


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This is business live from BBC News. Reaching a deal, as the climate


change summit comes to a close. The questions live from London.


Poor nations says their wealthier counterparts are not doing enough to


combat climate change. As a deal nears, the devil is in the detail.


Also, China's answer to Warren Buffett goes missing. Also we will


take a quick look at the markets. And we will be speaking to the one


and only Rory Cellan-Jones as he unravels what exactly is going on at


Yahoo. Also he explains why the tech behind bitcoin could change the


world of banking for ever. Plus, should it be Heathrow or Gatwick


which gets that extra runway? The debate which has been raging for 25


years here in Britain. And now the decision has been delayed for


another six months. What do you think? Does London need an extra


runway? If so, where should it go? Let us know.


A warm welcome to the programme. Over the last two weeks, Paris has


played host to a Who's Who of politicians, industry experts and


senior figures from every conceivable industry. As the climate


change summit draws to a close, has anything been achieved? Will we hear


word of the first new deal in 18 years? It was never going to be


easy. But in an attempt to break the stalemate, the Obama administration


has pledged 860 million US dollars to help poor countries deal with


heat waves and storms which experts believe are the result of rising


global temperatures. Even that might not be enough according to Laurent


Fabius, the French Foreign Minister. He says there are still free big


stumbling blocks to any deal. First, we still do not have any sense of


how much or what exactly the rich nations will commit to. Poorer


cousins are after public grants of about $100 billion by 2020. The


response from the rich? The private sector could pick up the tab.


Second, where do we set the goalposts? The developed nations say


the target of 2 degrees should be made tougher. Experts question


weather this is possible at all. And lastly, who should take the lead,


the polluters of today all the polluters of tomorrow? Roger


Harrabin, the BBC environmental analyst, joins us now. Can we start


with some of this money which has been pledged by the Obama


administration and others, which they have coughed up for the poorer


nations, which is to pay for the damage which has already been


caused. But I want to talk about the money which is needed, and who pays


for it, to get the developing nations not to use so much


traditional energy at to use sustainable energy? I have to say we


are closing in on a deal here. We do not have a deal yet and a lot of


things could still go wrong. The conference has been pushed into an


extra day, which is knows the price. These conferences are really tough.


It is on a knife edge. We have a text but we do not know which way


that text will go. In answer to your question, one breakthrough has been


made on cash. The developing nations are saying, you rich nations got


rich by polluting. If you want us to get rich by not polluting you have


got to help us get that clean energy and adapt to climate changes which


are already happening. The vulnerable nations in this current


text have won the day in the sense that there is now a clear funding


stream post-2020 one a minimum of $100 billion per year. Not quite


clear where it is going to come from. The developing countries say


it is still not enough, but there is movement. It may seem like a bit of


a silly question but I know people are thinking about it at around the


world - how does the group here determine the poorer nations or the


developing nations which should get some of this money? Are we talking


India and Pakistan for example? They have nuclear weapons programmes,


India has a space agency... This is a really difficult question. And not


a stupid question at all. The Saudis the other day, who are generally


seen as being blockers in these talks, employ some very, very smart


lawyers. One of these lawyers said exactly that. Who is going to decide


who is rich or poor? It is a really interesting question which is not


yet resolved. They are trying to reshape the world order. We are


trying to get big developing countries, big emerging economies


who are becoming major polluters themselves. The USA is trying to get


those countries to take more responsibility for curbing emissions


and also for helping other developing countries. This reshaping


of the world order is creaking and tugging at the moment. We are not


there yet but your question is a very good one. Roger, I hope I have


a good question for you as well! Sorry about that, Victoria! I wonder


about this kind of binary assumption of the poor and the rich - we also


have this discussion about the 2 degrees target as well. It is not as


though we are going to see planetary do if we fall off one edge of that


and everything is fine if we are the other, so how realistic is this 2


degrees target? Firstly, all these numbers are best estimates by


scientists. We cannot say if we hit a certain amount of emissions, we


get a certain amount of temperature rise. It is far too complicated for


that. So they are best estimates. But there has been another win in


this text for the most honourable countries, who say that two Celsius


is too much for them. We have already had a rise of one Celsius on


preindustrial levels and they are experiencing extreme weather


already. They are not willing for the temperature to rise more than


1.5 Celsius. The new text, which has not yet been signed off, says, at


least to Celsius, heading towards 1.5 Celsius. That is something of a


ground-breaking moment for the developing countries and it has


implications for people, countries, businesses everywhere. If we go on


the path of decarbonising by the end of the century, then it forces


businesses to look in the future away from coal and oil and gas and


towards renewables. It is momentous stuff which is happening here, if


indeed it does happen. Good on you, Roger. Tell them to


hurry up! Let's touch on some of the other stories making headlines


around the world. Of officials have shutdown a Mexican Grill restaurant


in Seattle. Why are we doing this?! After finding repeated food safety


violations. This is according to a statement from the Seattle public


health department. The restaurant is one of 17 in the county which


reopened last month just after passing inspections following an E.


Coli outbreak. Ford's plans to invest an additional $4 billion in


programmes to broaden its offerings of hybrids and electric vehicles...


It's CEO said the new version would be available next year. It would


have a 100 mile range and will be able to recharge in just 30 minutes.


The company says about 40% of its lines will be electrified by 2020.


The Indian Premier League is to Japanese counterpart will be meeting


for the fourth time in just over a month. -- the Indian Prime Minister.


They are going to agreed deals for Japan to build India's first High


Speed Rail network. We are talking a Bullet train. When you think of


trains and you think of India, you see the people hanging onto the


site. You don't want to do that on a Bullet train! Let's have a quick


look at what is breaking and trending on our page on the website.


You have got the tablet! I think we are going to be looking at South


Africa and what is going on with the politics. Jacob Zuma, the big boss,


ousted the finance minister yesterday. No explanation. He


installed somebody else. A relatively unknown former mayor. It


is quite interesting. The impact has been felt on the Rand. For a long


time, South Africa has managed to extricate itself from the problems


facing the rest of Africa, with the politics and economics being tightly


entwined. Normally in South Africa we get the Treasury and the South


African reserve bank being quite separate. But this move means that


that is now under threat. We will see next week if the US-led raises


interest rates, and what that might have as an impact on some of these


emergency economies. Over in Asia there is one big story hitting the


press. China's richest man... Sorry! Is this China's Warren Buffett. It


is a mysterious story. Tell the world what is going on. Well, it is


very mysterious, Aaron, and it is surrounding the uncertainty over the


whereabouts of one of China's richest men, the billionaire founder


of a massive group. Reports emerged on Thursday that he could not be


reached. And then on Friday, his company, Fosun international, asked


the Hong Kong stock exchange to suspend training in the shares of


the company. We have to be clear, we do not know weather or not he has


actually disappeared. But other high-profile executives in the


financial sector in China have gone missing in recent weeks. There has


been some speculation that this is part of the wider anti-corruption


campaign launched by Beijing, which has seen dozens of business


executives detained and questioned. Some of them actually come out of


that questioning having aided the authorities and they do emerge from


their mysterious disappearances. If this is confirmed it would be very


big news indeed. And you can see it being reflected on the markets, with


investors looking at this news with some caution. Back in on the markets


to see what is going on. In Asia, shares are set for sizeable weekly


losses. The plunging crude oil price and the tumble in China's currency


are having their effect. It is adding to concerns about receding


global growth. Europe has opened for business. This is how things are


looking. Not a huge amount of movement at the moment. Over to the


US to find out what is going to be making the headlines in Business


World Today. US retail sales figures on Friday are expected to show a


pick-up in November. It looks like car sales in particular were strong.


Economists predict that a report from the university of a jig will


show consumers are feeling better about the economy in December,


helped in part by cheap gasoline prices. The producer Price index


will likely show a 1.4% drop in prices charged by manufacturers in


November. That would be the 10th straight decrease in prices reported


by the index, pointing to lower inflation. With lower oil prices, we


will get a look on the latest figures on the number of drilling


rigs actively exploring for oil or gas in the United States. Richard,


great to have you with us. The FTSE in particular, six days of... Yes,


six days of that! The much mooted rally which we were talking about at


the start of the month has not appeared. It has been a pretty


miserable week. Is this a moderate ease? It is mainly commodities.


Anglo-American down 17% on the week. BHP Billiton down 6%. But the


FTSE-100 is down almost 4% on the month. That is a big fall. It is


pretty miserable. And it looks like it will be another miserable


day-to-day. And we have got the Russian central back decision coming


up in just under two hours. It is very difficult there to separate the


politics and the can mix question mark -- and economics? Yes, and we


have also seen food inflation, the sanctions taken against Turkey, and


we have also seen the rouble falling ahead of the possible Fed rate cut


next week. That is also driving inflation. So it looks like we may


not see a rate cut now. Yes, Russia have banned foodstuffs from certain


parts of Europe and from Turkey which is having an impact, so


experts tell us. The big problem is that Russia needs to balance its


books around ?120 a barrel of oil at the moment, which is less than 40 at


the moment. Absolutely and some economies do win from low oil prices


and others really lose and Russia is one of those that really loses. You


will come back to take us to the papers, some good stories.


Our technology editor Rory Cellan Jones is


waiting in the wings - ready to run through


Whether Marissa Mayer will be able to hold onto the top slot at Yahoo.


You're with Business Live from BBC News.


OK - let's take a look at some of the stories from around the UK.


The government's been criticised for delaying a decision on airport


expansion in the south-east of England until next summer.


Ministers said they wanted a further review of the environmental impacts


of the rival schemes at Heathrow and Gatwick.


Business groups and airlines have reacted angrily,


warning that the uncertainty over Britain's aviation future could cost


Labour claimed the postponement is for political reasons rather


Lets leave the politics of the decision aside for a few


minutes and talk a little about the actual building


of the runway whenever, and whenever, a decision is made.


Joining us is Robbie Owen, Planning and Infrastructure partner


Welcome to the programme, in terms of infrastructure and in terms of


the easiest place to build and put another runway is it Heathrow or


Gatwick? I think it is Heathrow because it is not just what is


obvious, it is what is the best solution for Britain, what brings


the most benefit and makes the most sense strategically. That is


definitely the scheme by Heathrow Airport for a north-west runway. Is


the argument here, I like habit of aviation, I follow it closely, some


people will say that it's the second busiest airport in the number of


passengers, there are mid-sized German airports with and four


runways. We are a small island. This has been looked at by the airport


commission. And this is the government interim response. It has


been looked at carefully over three years with a lot of consultation and


consideration by experts and this was the considered view that


Heathrow is a clear winner of the three short listed schemes. We


appreciate, short and sweet, but we have your answer, Heathrow it is for


you. Lipstick quick look at this story, a downgrade for the UK


economy coming from the Institute of chartered accountants. This is all


to do with slowdown in China, weak growth in Europe and it is hitting


business confidence. I did not realise we were back!


Let's talk technology. Rory is here. Can we get stuck into it? There we


go. I'm amazed by the performance this morning. Yahoo, a massive


U-turn, no direction for the Internet part of it, what's going


on? One of the biggest names on the Internet, one of the great companies


that rose in the 1990s. In 1995, Surrey, 2005, it bought a stake in a


Chinese company for $1 billion and now that state is huge, it is worth


30 times more. You have an Internet company, a tiny Internet business


with a giant stake in the Chinese retail company that is dominating


the business. It was going to spin it off but now it has looked at that


and the boss has said it's too complicated. All sorts of tax


implications would make it too difficult. Instead we will spin of


the Internet business which brings the focus back to what an effigy has


been doing during her time in charge? She became as the great


saviour, one of the most powerful women in silicon valley on a huge


salary and people are asking what her strategy is. That being said,


let's look at her, three years ago she took over as boss. If you bought


shares the day she came inside back and help them your shears would have


more than doubled in value. She's made a lot of people very rich. If


you look at most companies, and said that would be the performance, most


people would be happy, so why is she having such a tough time with


investors? They see that story as played out and what is coming next?


What is the strategy? She does not appear yet to have found a recipe


for turning round the court Internet business. Interesting commentary


this week to say it is crazy that you think you can just bring in a


Steve jobs type figure and have that type of turnaround, it would be


better having someone quietly managing the thing and ticking over.


We want to talk about that Bitcoin. Digital currency, incredibly


fashionable but people think it could be dangerous and it is very


volatile, price going up and down. What people are focusing on is the


technology behind it. Blockchain. It's like an old journal that you


would keep everything in writing, put that in the 21st century and put


it online and make it available and visible around the world and have no


centralised authority and what the big banks have done this week,


Goldman Sachs and a number of other major banks, is invest in a


technology firm which will look at ways of using that blockchain more


widely across the banking industry. I have heard people describe this as


more important than the Internet itself, the blockchain. I am still


getting my head around exactly why it will transform everything but


there are a lot of people very excited about it. Fascinating,


Goldman Sachs think it is a winner. They could be disrupted so they want


to do the disrupting first. Happy Friday, have a great weekend. In a


moment we will take a look through the business pages but first a


reminder of how to get in touch. What are the business stories the


media have been interested in? Richard Fletcher is back, let's


start with a story on your front page, British Airways threat to


abandon Heathrow, tell us more? Businesses are angry about the


indecision by the government but they are also angry, this is a


complicated issue, will he Walsh is angry about the fact he will have


two paper the expansion upfront -- will he Walsh is angry about the


fact he will have to pay for the expansion upfront. It's another


example of what a complex issue this is, although business is very angry


about the lack of action by the government they do desperately want


a new runway, a lot of disputes about where it should be, who should


pay for it, it's a compensated issue. It's a combo give it issue,


we are making it complicated. It is not, located in China or the gulf


states or other part of Europe that we are trying to compete with,


Britain is losing out economic life. Absolutely which is why we sought


such anger yesterday, the CBI describing the primaries as gutless


-- the Prime Minister as gutless and that we need to just get on and


build the runway. There are fears we could run out of capacity by 2025.


Can we talk about to? Some serious initiatives, they are trying to


encourage water companies to use the waste product, let's put it that


way, they are left with once they have cleaned up the sewage. The idea


is you can generate energy which you then sell back to the National Grid.


And there is a further waste products you would give to farmers


to scatter on the fields. It's a cracking idea really. They do it in


Africa. The burn it. Great stuff, I don't agree have time


for the next one. That's it from business alive, plenty more business


news throughout the day on the website and world business report --


business live. Quite a contrast from north to south


across the UK today,


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