14/12/2015 BBC Business Live


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Business live, from the BBC, with Ben Thompson and Sally Baldock,


president Barack Obama hails the climate deal as a turning point, but


at the cost of billions of dollars, can the agreement ever succeed? Live


from London, that is the top story. Nearly 200 countries agree a


landmark deal to cut emissions but how will it affect business and is


there the collective will to put that theory into practice? We will


have those questions answered shortly. Also, can you feel the


Force? Disney certainly can. They are expecting to make hundreds of


millions of dollars from the latest Star Wars movie. And the


rollercoaster has begun. Asian markets were headed lower. Europe is


going higher. What will they do this week? And making millions out of


mixers. The boss of Fever Tree joins us. And as the interest rates creep


up, we want to know whether America will raise the cost of borrowing for


the 1st time since 2006. Let us know.


It is a packed programme. A very warm welcome. As the dust settles on


the landmark climate deal in Paris, businesses are assessing how it will


impact their operations. 200 countries took part in the


negotiations, striking the 1st deal to commit all nations to cut


emissions. As Ms leaders have already called for more action, the


Confederation of British industry called for an environment that


enables investment in clean, secure energy. The climate group and


business partners called it a victory for science and division


which calls time on the fossil fuel age. Barack Obama said the deal is


the best chance we have to save the 1 planet we have, which could be a


turning point. And China and India hailed the deal. Campaigners said


this did not go far enough. Friends of the Earth urged that energy


efficiency and renewable power efficiency and renewable power


should form the backbone. Some politicians have undermined


investment in these areas. Let's take you to Mumbai. This historic


deal being hailed as something which will make a huge difference. India


were pushing for a differentiation between emerging economies and


developed. More help for emerging economies in terms of looking for


alternative sources. That is what the Indian government seem pleased


about, they said there were no winners or losers in Paris. The


Environment Minister said what they are extremely satisfied with is the


differentiation in the wording of the deal for developed countries.


India needs to burn coal for it to grow. But they have committed to


doing is reducing the intensity with which these will grow. Not everyone


is happy. Lots of campaigners said this was a week and unambitious


deal. They are saying it is discharging developing countries of


their historic responsibilities. They say from 1965 until 2014 India


only contributed 3% of greenhouse emissions, whereas the US has more


of a responsibility. Developing countries have gained from this.


What our businesses saying about what will change for them? How will


they respond to this? It is about a source of power. The big plan the


government has, they said they have set out $2.5 trillion. People are


talking about hundred billion dollars of funds. It does not seem


to be enough and there is not a proper road map. Business leaders


have recognised the responsibility, 1 of the biggest IT companies in the


country have said they recognise responsibilities but there are needs


to be gradual. They cannot stop it cutting emissions any time soon.


Thank you very much. Other stories, starting with Twitter, which has


sent warnings to number of users that their accounts have been hacked


by what they as state-sponsored actors. The Chinese and North Korean


governments are believed to be responsible. Business confidence


held steady. Some fear that it will not last. The bank of Japan has


shown that major companies stood at plus 12.


nationalising the nuclear submarines business of Rolls-Royce, according


to the Financial Times, it is worried that the whole company could


be vulnerable to a takeover bid from a foreign investor despite


safeguards put in place when it was privatised in 1987, it is still


concerned about who may end up servicing the country's nuclear


submarines. And the live bait, a couple here,


one about the deposed move of HSBC, certainly, the rumoured move of


whether the bank could move its headquarters, many expect that it


would move to Hong Kong, HSBC, as it points out, making 80% of its


profits in Asia. The bit of a giveaway! Where might they be


thinking? Possibly Canada is one option, considering moving the


headquarters, where will it move. I wonder what the staff are thinking


about all of this. Hong Kong or Canada? I think that I would choose


Canada... Get in touch, if you live in Hong


Kong, or Canada. Which one would be better. A quick look at


stories here, this picture there, Peppa the Pig, which owns


entertainment one, its shares are down 20%, at the same monthly


interest payments would be down. I have watched it... It is great.


You have a Nice, she is very cute. China has been making the headlines


for all of the wrong reasons. A glimmer of hope when it comes to the


Chinese growth story. Good economic data out of China over the weekend.


Retail sales, strongest game this year, fixed asset investment,


beating market expectation, it shows that all of these stimulus measures


that the Chinese government rolled out over the past year to prop up


the world's second-largest economy may finally be working. We six


interest rate cuts since last year, and most of those investment, just


last week, Friday, the economy is slowing, growth will fall to its


slowest pace this positive data has eased some of


the worries, China anticipated, analysts are still


hoping for even more measures from China. Good to see you, thank you


for the update on China. Did not help markets across Asia, and


closing down, at one point it was down 3% today, Hong Kong also lower,


that is the close in the US on Friday. Jitters about the Fed 's


decision this -- midweek setting in. The oil price is continuing to


retreat. Let's look at Europe, let's not forget, European markets have a


pretty torrid Friday, ending the week 4% lower, some of the markets,


as you can see, a bit of a bounce back across the board in Europe,


various companies coming up with announcements, among them,


AstraZeneca, saying that they are in talks with an over-the-counter trug


developer in the United States. Corporate new is out there today.


Let's look ahead to what is going on on Wall Street. Last week the US


market was hit with its worst weekly loss since the


question, how will the markets respond this week, especially with


the Fed's looming interest rate decision on Wednesday, there will be


a whole host of economic data for investors to take him, figures out


Tuesday are likely to show that consumer price has increased, only


slightly, and analysts predict industrial production data will show


that it has dropped for the third straight month in November. And a


pharmaceuticals Chief Executive is going to hold a meeting for hundreds


of investors on Thursday, Canadian company's stock -based world drops


after under scrutiny, for billing practices at a specialty pharmacy


and for hiking up prices. She will be speaking about Star Wars


for us later. Richard Hunter has joined us, head of equities, let's


talk Fed, because finally, we are in that week, we will question whether


the cost of borrowing will be raised by the US, but it is coming at a


time when we have seen such volatility, not least with


commodities markets. Pretty weak market, last week, as we were just


mentioning, a lot of that down to commodities prices, the main culprit


was probably oil, a massive global glut, Opec said a couple of weeks


ago that it will continue at production level, there is more due


on stream next year, around 40 bucks a barrel, some people are beginning


to question whether it is viable to continue to do that, and get stuff


out of the ground. All of that is deflationary, that is not the


environment where we would be looking to raise interest rates,


that being said, the US is the world biggest economy, and there is


probably a 75% chance at least that we will see some kind of like when


they make the announcement late in the week. Can they afford to not


change rates? They cannot. In September, they did not actually


make any announcement at that point, just to put it into perspective, the


most important thing comes next year, because the likelihood of an


interest rate hike is not going to be a big one, it is a more -- it is


more of a gesture, we will turn attention to how many hikes we will


see next year, current market consensus, anywhere between two and


four. Underneath all of that, the Fed have said, this will be a


gradual game, the last thing they want to do is not only derailed


their own economic recovery but also send shock waves around the world to


other countries. Who have debts denominations in dollars. Thank you


very much. Coming up: making millions out of


mixers, the boss of Fever Tree its air to persuade you and me that his


tonic walk water is the only one to drink this party season.


We have talked a lot about the slump in commodities prices but the big


question, where does that leave the megamerger between BG and shell, it


seems that a shareholder vote is all that stands in the way of a deal to


create the biggest listed company in Britain, but does it still make


financial sense, with oil below $40 a barrel at the moment? Simon Jack


is in the business newsroom. It has changed a lot since that initial


deal, discussions of a deal, on the radar between Shell and BJ.


Interesting other commodity belt can scupper the best laid plans of some


senior management, as you would say, making one of the biggest companies


in the UK. This is when the deal was announced, big increase in price,


look how fortunes are closely linked, mirroring each other's


moves, the shares combining, the boss of shell himself, last year,


said that this deal only makes sense with oil at $67 a barrel or higher,


currently, it is below 40. One major shareholder this morning told me


that he is not happy in voting for this unless they come up with


something else because on the current, the way that this deal is


active, it does not make any financial sense. The Chinese


regulator gave this the green light, but it will not be the regulator


that is the obstacle to getting this megamerger done, it is the


shareholders themselves, based on the say-so of the Chief Executive of


shell. That story changing all of the time.


There is a timely story in the Guardian looking at the closure of


the last remaining coal mine in Yorkshire. Particularly timely given


the news we've heard about the climate change talks. Paul was once


dominant industry. It is very easy to romanticise, this article says,


in an industry that was hard on the environment and the people who


worked on it. They look back at what is a historic day but given what we


said at the top of the program, still a big source of energy in


India. But you're watching business live.


The top story, world leaders have hailed the business -- hailed the


deal reached in Paris, President Obama saying it is the best chance


we have to save the planet. But major nations think it is far worse


than perfect. The agreement is not binding. We have been assessing the


impact on businesses in emerging nations. As the Christmas party


season gets into full swing, what is your tipple of choice? When it comes


to gin and tonic there is a relatively new player in town. Not a


gin but the tonic. A premium drinks company called Fever Tree was set


up. The product range began in 2005 with tonic water using premium


ingredients. 7 of the worldpos-mac top 10 restaurants agree. Europe is


the market but they are sold in 50 countries around the world. There


were revenues of $52.5 million. The CEO of Fever Tree is with us and has


brought with him mixers and ginger beer. He has not brought ginger


beer. It is too early in the morning. Thanks for being on the


programme. 2005, relatively new company. How did it begin? You


mentioned my business partner and I, we got together back in 2003 and we


identified the same thing, premium spirits had been growing all round


the world, better quality spirits coming to the market and this


wonderful craft spirit. Bartenders were celebrating spirits. This was


happening but in stark contrast, the next category remained the preserve


of one global brand focusing on fighting with local cheaper


alternatives. It had become commoditised category. Artificial


sweeteners found their way in across the board. People spending more


money on good quality gin, and when you think three quarters of the gin


and tonic is tonic, surely the quality of the tonic is as


important. You are a relatively small player taking on the might of


Schweppes. They still dominate this market. How do you sell yourself? Is


it the premium range or selling the better ingredients? We saw ourselves


as offering something different. We were putting quality and flavour


back into this category. We looked at it through a different lens.


Broadly speaking, the only similarity is we are both in small


cans. It is 50p to buy a can of fever tree. It is still very


affordable. We need to leave it there because we have so much more


to pack into the programme. We will unpack further later on. There has


been another big shake-up in South African politics, with the President


replacing the newly appointed finance minister with a more


experienced colleague. He is the third finance minister to hold the


brief in a week. Pretty volatile week. Absolutely, it sent the rand


into turmoil. Three finance ministers in one week. It started


with the shock sacking of a man considered a safe pair of hands.


Replaced by someone with no experience whatsoever, seen as a


politically inspired move but after much pressure over the weekend, the


president, who was defiant, had a change of heart. His previous


finance minister has come back. In the next couple of hours we should


get the words of the minister as he takes to his desk. It introduces a


degree of stability to the markets. We are seeing some recovery. Is the


reputational damage there? We will keep an eye. We will look through


the business pages in a moment that you cannot fail to have noticed that


there is a new Star Wars film coming out this week. Prepare for all the


merchant dies as well as the actual film. We've been looking at what it


means for Disney who are releasing the film. High energy and nostalgia.


There are no clues for the plot but fans are offered the same characters


as the previous franchise. The future of the franchise is


limitless. I see no reason Star Wars cannot continue in the hands of


gifted storytellers. A big factor in the success is the broad appeal


across three generations. A retailer's dream which Disney has


been happy to fulfil. We will be doubling the space in the majority


of our stores with incredible new products to allow collectors and


kids to get into this franchise. Merchandising has driven most of the


revenue, and sales are expected to be ?5 billion. There are toys,


novelty items, video games. Disney is planning to Mac theme parks.


Disney's strategy has been focusing on marketing the brand. What started


in a galaxy far away has become self-sustaining business which could


outlive the first fans. I am excited. You're not going to be able


to see it? I've got a four -year-old. I cannot persuade them


here's 12 at the cinema. You're not a fan? I am not. Let's talk about


this story. Butlers are trading this story. Butlers are trading


silver trays for iPads or tablets. You need tech skills to be a butler.


It is quite obvious when you think about it. Not just a question of the


tablet situation. They've got this high-tech stuff around the house and


when it goes wrong they need an expert. Much like working here.


Sorry to keep it so brief. Thank you for that. Good morning. It has been


cloudy and


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