18/12/2015

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:00:00. > :00:08.This is Business Live from BBC News with Maryam Moshiri and Aaron

:00:09. > :00:16.As migration tops the agenda of today's EU summit,

:00:17. > :00:19.we look at how much of the money that's been promised to deal

:00:20. > :00:21.with the crisis has actually been delivered.

:00:22. > :00:39.Live from London, that's our top story on friday 18th December.

:00:40. > :00:42.As EU leaders meet to thrash out an agreement on how to solve

:00:43. > :00:45.the ongoing migrant crisis, questions are being asked about how

:00:46. > :00:48.much money is really getting to those who need it and if enough

:00:49. > :00:55.of the EU's 28 members are really pulling their weight financially.

:00:56. > :00:59.FTSE 100 bosses earned 183 times the average salary

:01:00. > :01:04.A report out today says that's starting to cause friction

:01:05. > :01:12.We're taking a look at CEO pay and the question of how much

:01:13. > :01:15.Stocks in the US fell sharply on Thursday,

:01:16. > :01:18.as traders turned their attention away from the Federal Reserve

:01:19. > :01:30.Shares in Asia followed, and this is how the markets

:01:31. > :01:34.in Europe are doing right now.

:01:35. > :01:38.And we'll be getting the inside track from this bloke -

:01:39. > :01:41.our business editor Kamal Ahmed who's going to take us

:01:42. > :01:43.through the top stories over the past week -

:01:44. > :01:46.we'll be talking oil prices, the Fed rate rise and making money

:01:47. > :01:50.Today - we want to know what you think about that story

:01:51. > :01:51.about workers being demotivated by executives high pay.

:01:52. > :01:55.Should the big boss of a company get something like 183 times higher

:01:56. > :01:57.salary than the lowest paid that company?

:01:58. > :02:15.As the European Union holds its final summit for 2015,

:02:16. > :02:18.there's one topic that will be driving the agenda:

:02:19. > :02:21.While the EU has promised to find homes for 160,000 refugees,

:02:22. > :02:27.it's also thrown a huge amount of financial aid behind the issue.

:02:28. > :02:29.The European Commission has pledged that member states will contribute

:02:30. > :02:40.But so far, not enough member states have responded to that call.

:02:41. > :02:41.There's a massive shortfall

:02:42. > :02:45.and what individual stats have agreed to contribute.

:02:46. > :02:49.During a humanitarian crisis or natural disaster,

:02:50. > :02:51.politicians and world leaders tend to rally around and pledge billions

:02:52. > :03:01.But often, not all the money makes it to those who need it most.

:03:02. > :03:02.For example, after the 2010

:03:03. > :03:07.politicians worldwide pledged $4.5 billion for reconstruction projects

:03:08. > :03:14.But according to the United Nations, only 53% of that money was actually

:03:15. > :03:17.delivered, and only a handful of donors fully met their pledges

:03:18. > :03:22.Eloise Todd is the Global Policy Director of ONE,

:03:23. > :03:36.Thank you for joining us. Marion was just highlighting some of the

:03:37. > :03:41.numbers. It is easy to pledge something, it is another thing to

:03:42. > :03:45.cough up the money, a shortfall of nearly $2.5 billion, who coughs that

:03:46. > :03:50.up? Who's shoulders does that for one eventually? Kellie it is

:03:51. > :03:55.important that that is shared amongst the people that can pay.

:03:56. > :04:00.There are two particular priorities right now, firstly that those in

:04:01. > :04:04.need get the money and the support that they need on our shores, but

:04:05. > :04:08.secondly and crucially we must make sure that money for the refugees in

:04:09. > :04:12.the crisis does not come at the expense of the poorest in the world

:04:13. > :04:17.because right now what we are seeing is development budgets being dipped

:04:18. > :04:23.into by countries like Sweden in order to respond to the crisis on

:04:24. > :04:28.our shores. We don't want to let this to send into a 0-sum game at

:04:29. > :04:36.the expense of the poorest in the world. You use the phrase, who can

:04:37. > :04:40.pay? If we talk about Europe, there are some poorer economies than

:04:41. > :04:47.others, but at the moment not all of them are doing that well. Should the

:04:48. > :04:50.wealthy economies in Europe pay more, do you think, than the others

:04:51. > :04:58.all should be shared out equally? I am trying to get a sense. Everybody

:04:59. > :05:01.needs to pay up and contribute to this Dunne these needs. What we have

:05:02. > :05:06.seen is some countries and entities doing better than others in this.

:05:07. > :05:12.The European Union for example managed to find extra money in the

:05:13. > :05:14.2016 budget to support both the refugees and increase development

:05:15. > :05:17.aid, so those programmes could be ongoing, and what we need to see is

:05:18. > :05:22.more of that kind of flexibility from countries across the world so

:05:23. > :05:26.they have contingency plans, so when these kind of crises occur, we are

:05:27. > :05:32.not raiding long-term programmes that ultimately save lives. Where

:05:33. > :05:38.does the money actually go? What is the area of most need right now?

:05:39. > :05:42.Right now, there are several needs. We need to talk about the long-term

:05:43. > :05:45.stability in these countries. We need to provide for the people in

:05:46. > :05:49.refugee camps that don't have enough money, and we need to make sure that

:05:50. > :05:53.we sustain the long-term development programmes across the Middle East

:05:54. > :05:57.and also in sub Saharan Africa to make sure that we have the long-term

:05:58. > :06:04.development that brings stability to these people. We have been tracking,

:06:05. > :06:09.for example, last year in the Ebola crisis, we undertook a big programme

:06:10. > :06:11.to look at how many were spent, and dispersed and pledged, and it is

:06:12. > :06:15.crucial that governments, when they sign up today at the European

:06:16. > :06:18.council, when they say the money they are going to pledge they need

:06:19. > :06:22.to be absolutely crystal clear that the budget lines it is coming from,

:06:23. > :06:25.where they intend it to go to and how they will be spending that

:06:26. > :06:30.money, so that groups like ours at the One campaign can help them to

:06:31. > :06:31.account those actions. We appreciate your time, good luck with anything,

:06:32. > :06:34.thank you per joining us. IMF chief Christine Lagarde

:06:35. > :06:38.is to stand trial in France for alleged negligence over a 400

:06:39. > :06:41.million euro payment to businessman She was finance minister

:06:42. > :06:48.in President Sarkozy's government at the time Mr Tapie received

:06:49. > :06:51.the payout for losses he had blamed on state controlled

:06:52. > :06:54.bank Credit Agricole. Mr Tapie had supported Mr Sarkozy

:06:55. > :06:58.in the 2007 presidential election. Ms Lagarde's lawyer described

:06:59. > :06:59.the court's decision as "incomprehensible",

:07:00. > :07:05.and said the IMF boss would appeal. Research from the Chartered

:07:06. > :07:07.Institute for Personnel and Development has found that three

:07:08. > :07:10.in five workers in the UK are demotivated by the amount

:07:11. > :07:12.the chief executive It found that FTSE 100 bosses earned

:07:13. > :07:22.183 times the average salary China's - and so the world's -

:07:23. > :07:37.demand for coal could be peaking - according to a report

:07:38. > :07:42.by the International Energy Agency. A slowing economy and a move

:07:43. > :07:45.towards less energy intensive industries is reducing

:07:46. > :07:46.coal consumption - as well as the state's attempts

:07:47. > :07:49.to clear up the choking smog that The IEA says India will take over

:07:50. > :07:55.from China as the world's biggest Coal use there will rise but not

:07:56. > :08:20.enough to offset declines elsewhere I am glad you did that story. Put

:08:21. > :08:29.those glasses back on, you look hot. I am glad you do that story about

:08:30. > :08:36.coal. It is called a Segway. It is Ashley quite a sad story, the last

:08:37. > :08:42.UK deep coal mine to close, interesting we have just have that

:08:43. > :08:51.report about Peak coal, or call speaking, -- or coal Peking, the

:08:52. > :09:00.very last coal mine, deep coal mine, is closing but the UK will style

:09:01. > :09:03.after -- will still have to import 30 million tonnes. The likes of

:09:04. > :09:06.India saying we have to use more coal. But IS find out what else is

:09:07. > :09:12.making the news around the world. Mariko Oi is in Singapore with news

:09:13. > :09:15.that the Bank of Japan has launched a plan for firms to boost

:09:16. > :09:20.wages and investment. They have done it again. Another

:09:21. > :09:25.form of stimulus. But what ever they did, I do know, the markets were not

:09:26. > :09:35.happy. The McKay was down nearly 2% today. Indeed, Aaron. It came as a

:09:36. > :09:39.huge surprise -- the Nikkei. The bank of Japan announced further

:09:40. > :09:41.stimulus measures mainly for companies that are actively

:09:42. > :09:45.investing and hiring more people and that is because even though a lot of

:09:46. > :09:50.companies have been reporting very strong profits, they have not been

:09:51. > :09:53.employing more people, which of course the government and the

:09:54. > :09:57.central bank want them to do in order to boost the economy activity.

:09:58. > :10:01.So at least there are some incentive there. But investors did not seem to

:10:02. > :10:05.think that would be enough to encourage companies to start hiring

:10:06. > :10:11.more people instead of racking up their own cash. So, as a result,

:10:12. > :10:16.after the announcement, Japan's Japanese shares soared as much as 3%

:10:17. > :10:23.but shortly after they started to fall, ending down almost 2%. Thank

:10:24. > :10:24.you very much. Let's take a look at what the figures have been telling

:10:25. > :10:26.us. Asian stock markets were lower

:10:27. > :10:28.Friday as a persistent drop in the price of oil weighed

:10:29. > :10:30.on investor sentiment, eroding gains sparked the day before

:10:31. > :10:33.by the Fed's first rate hike Wall Street dropped

:10:34. > :10:47.as oil prices stayed low. In Europe, stocks shares fell

:10:48. > :10:50.on Friday to retreat from a one-week high reached in the previous

:10:51. > :10:52.session, with supermarket group Casino losing more ground

:10:53. > :10:54.in the wake of a negative research And now Nada Tawfik can tell us us

:10:55. > :11:04.what will be making the headlines in the business world

:11:05. > :11:16.in the United States today. US stocks on Thursday snapped a

:11:17. > :11:20.three-day rally. The market of the day of the Fed's first rate rise in

:11:21. > :11:24.nearly a decade and down the day after, so how will they end the

:11:25. > :11:27.week, especially with oil still weighing on energy stocks? It will

:11:28. > :11:30.be a quiet day on Wall Street without any major event in the

:11:31. > :11:36.calendar, but there right few earning reports out. Carnival

:11:37. > :11:39.Corporation will post fourth-quarter results. Analysts will be interested

:11:40. > :11:42.to see how the company is coping with the negative effects of a

:11:43. > :11:46.strong dollar and weak global demand. There will also look to see

:11:47. > :11:51.how the Paris attacks in November affected its booking on cruises.

:11:52. > :11:53.Blackberry and restaurant chain Olive Garden also report quarterly

:11:54. > :11:54.sales and profit. Joining us is Jeremy Stretch,

:11:55. > :12:09.head of currency strategy at CIBC You will get a staff pass soon,

:12:10. > :12:16.Jeremy. Can I stop with the stop -- top story, the cost of the EU

:12:17. > :12:20.summit, migration, a big shortfall, do the markets focus on that?

:12:21. > :12:26.Everyone is focused at the moment on what it is costing say Europe, but

:12:27. > :12:29.there is a benefit Europe as well. Indeed, if you take the very

:12:30. > :12:34.long-term macroeconomic environment and consider the way the term of

:12:35. > :12:37.reference is working in Europe, ageing populations, low levels of

:12:38. > :12:41.birth rate, if you look at the German population it is forecast to

:12:42. > :12:46.be going down over time, so they actually require workers. So you

:12:47. > :12:49.could argue from a long-term economic perspective, the net

:12:50. > :12:55.migration into the mainland of Europe is a necessary constituent

:12:56. > :13:00.and will help to generate growth diameters. Politically it is very

:13:01. > :13:05.challenging, particularly for Angela Merkel for her re-election in 2017

:13:06. > :13:09.but over the longer term, you can argue aggression in the northern

:13:10. > :13:12.Europe, even into the UK, as we have seen in the last ten to 15 years,

:13:13. > :13:18.provide a benefit to economic performance. Let's talk about oil

:13:19. > :13:21.prices. We talked about the Fed reserve but oil prices are really

:13:22. > :13:26.staying quite low and we are seeing the possibility of the US lifting

:13:27. > :13:30.its 40 year ban on oil exports. We continue to see an industry

:13:31. > :13:34.overhang, so there are too much being pumped and not enough demand.

:13:35. > :13:37.We saw a couple of weeks ago Opec saying we're not going to reduce the

:13:38. > :13:42.amount we are pumping, and the Saudi Arabian said not reducing our

:13:43. > :13:46.output, so there is still this overhang. Global demand is still too

:13:47. > :13:50.low, you are talking about China and the impact on coal, it is the same

:13:51. > :13:54.impact in terms of oil where they are not using as much as they have

:13:55. > :13:59.done previously, partly due to growth dynamics, but also due to

:14:00. > :14:02.changing growth in the domestic market. Oil prices continue to be

:14:03. > :14:07.dragged lower but also as the US dollar appreciates, that also

:14:08. > :14:15.depresses the dollar .com and dated oil price, which is bad news for --

:14:16. > :14:17.dollar-denominated oil price. It is good news for the procedures. Thank

:14:18. > :14:24.you much. Still to come, we'll be

:14:25. > :14:26.getting the inside track from this bloke - our business

:14:27. > :14:28.editor Kamal Ahmed who's going to take us through the top

:14:29. > :14:31.stories over the past week. You're with Business

:14:32. > :14:43.Live from BBC News. Energy firm NPower has been fined

:14:44. > :14:54.a record ?26 million Let's go live to Joe Lynam. He has

:14:55. > :14:58.the details. There is one thing that gets people's backs up. It is how

:14:59. > :15:03.they are treated by their energy company because next year's shopping

:15:04. > :15:05.bills annual rent or mortgage, the next biggest cost in your monthly

:15:06. > :15:12.outgoings is your energy bills and this particular company, Npower, has

:15:13. > :15:17.been fined ?26 million, the biggest ever fine for a domestic energy

:15:18. > :15:21.company. They have been done so for billing late, billing in accurately

:15:22. > :15:29.and not dealing with the complaints when you phone up to complain about

:15:30. > :15:34.those bills. I am showing a chart for RWE, the German giant, that owns

:15:35. > :15:40.Npower. Their parent company have had a really nasty year, shares down

:15:41. > :15:42.60%, simply because oil prices are so radically down which means the

:15:43. > :15:48.amount of money they can make is also going to be down, Npower have

:15:49. > :15:52.to face this bill. If they do not meet a new set of targets for

:15:53. > :15:54.standards by June this year they won't be allowed to sell energy in

:15:55. > :16:04.the UK from now on. A pretty Draconian change.

:16:05. > :16:06.It was almost like he blew a kiss them!

:16:07. > :16:08.That was for me! A pathway to a deal on new terms

:16:09. > :16:11.for Britain's membership within the EU has been found

:16:12. > :16:13.by European leaders, The Prime Minister said good

:16:14. > :16:18.progress was made at the EU summit in Brussels, but it would be tough

:16:19. > :16:24.to finalise terms by the proposed Mr Cameron is demanding

:16:25. > :16:28.change on four issues, including curbing in-work benefits

:16:29. > :16:44.for EU migrants in the UK. We heard about the resignation of

:16:45. > :16:51.Heathrow's chairman, the front page of the Daily Telegraph... I am

:16:52. > :16:54.sorry, am I disturbing your peace? The front page of the Daily

:16:55. > :17:02.Telegraph has more on the story, he has quit the group after delays over

:17:03. > :17:07.the running of Heathrow. The government delay, that is.

:17:08. > :17:11.Sorry, we could not bring that for you!

:17:12. > :17:16.EU leaders will wrap up a major summit in Brussels today.

:17:17. > :17:19.Top of the agenda is the growing migrant crisis across the region,

:17:20. > :17:21.with hundreds of thousands of refugees coming into Europe over

:17:22. > :17:26.Billions of dollars in aid has been pledged by governments to help deal

:17:27. > :17:41.And now let's get the inside track on Fed rate rise, oil hitting $35

:17:42. > :18:00.I am not making any money on it! It is great to see you. Can we start

:18:01. > :18:05.with oil? A lot of people did not realise that the US had a ban on

:18:06. > :18:14.exporting crude oil, they will lift it. Nvidia year, we could see

:18:15. > :18:22.American oil, Iranian oil, Libyan oil, a lot of oil, when we already

:18:23. > :18:28.have a lot. The global economy is relatively slow in growth, you have

:18:29. > :18:33.a demand problem and oversupply, just as your previous guest said.

:18:34. > :18:38.You are right to pick up on those points. Iran, with the sanctions

:18:39. > :18:45.being lifted, there will be an implementation date next year when

:18:46. > :18:53.they can start properly servicing and exporting oil again. Saudi

:18:54. > :18:57.Arabia is not going to start cutting its oil output because it knows it

:18:58. > :19:03.will lose market share. Iran and Saudi Arabia are not the best of

:19:04. > :19:08.friends. You cannot see that this supply issue is going to be tackled

:19:09. > :19:13.in any way. At the same time, countries like Russia are still

:19:14. > :19:16.trying to pump as much oil as they can to support their economies,

:19:17. > :19:22.which have been hugely affected by the low oil price. This problem of

:19:23. > :19:27.oversupply and flat demand will continue through next year, and you

:19:28. > :19:32.cannot really imagine that there will be much upward pressure in the

:19:33. > :19:35.price at all. We are predicting more rate rises from the Fed, how will

:19:36. > :19:40.that impact the rest of the world, in particular European rates?

:19:41. > :19:45.Psychologically it increases pressure on the big central banks in

:19:46. > :19:50.Europe, the Bank of England and the European Central Bank. They are in a

:19:51. > :19:54.negative interest rate environment. The growth is still patchy in

:19:55. > :19:58.Europe, although getting slightly better. Growth is better in the UK,

:19:59. > :20:03.the Bank of England governor has said that although the British

:20:04. > :20:09.economy is often seen as a assist to the American economy, it is not time

:20:10. > :20:16.yet in the UK for rate rises, the UK may be first through 2016, even that

:20:17. > :20:22.UK growth is stronger. It is important to look further towards

:20:23. > :20:27.Asia and Japan. Japan is also in a very low interest rate environment,

:20:28. > :20:33.growth is sluggish. You are getting the great divergences, America will

:20:34. > :20:38.go in run -- one Direction, the rest of the world will go in another.

:20:39. > :20:42.China is devaluing. That will lead to capital flows, which was going

:20:43. > :20:46.towards America and away from the lower returns in Asia and Europe,

:20:47. > :20:50.which could be a tension, and a big theme. All that money continues

:20:51. > :20:58.flowing into North America, what does that mean's if you are thinking

:20:59. > :21:00.about global funds and they are making big investment into

:21:01. > :21:05.infrastructure and rebuilding economies and corporate in different

:21:06. > :21:09.countries, they are thinking, where am I going to get the best returns

:21:10. > :21:14.from? America becomes much more attractive than Asia, particularly

:21:15. > :21:20.where there is still a low interest rate environment. America becomes

:21:21. > :21:27.more attractive as an investment home for these big global funds.

:21:28. > :21:32.Let's talk about Star Wars. The geek in me is desperate to see the film.

:21:33. > :21:36.You are a huge fan. I remember queueing with my father at the age

:21:37. > :21:44.of eight at the local cinema to see the first one.

:21:45. > :21:49.You were 20 then! I am a massive fan. I am taking my son and daughter

:21:50. > :21:56.this weekend. I am more excited than they are. What is amazing about it

:21:57. > :22:01.is how Disney has made it not just into a film but into a business

:22:02. > :22:08.franchise, merchandising, licensing. Disney leveraging the fact that it

:22:09. > :22:12.owns ESPN, ABC, news channels, and it uses the power in the market to

:22:13. > :22:16.ensure that it is not just the ticket prices they get the money

:22:17. > :22:20.from, it is all the things we buy, the merchandising, making it into a

:22:21. > :22:24.multi-billion pound business, what a great success. Thank you.

:22:25. > :22:26.Let's see what other stories are being talked

:22:27. > :22:34.Let's have a look at some of the stories that are making news

:22:35. > :22:46.around the world before we discuss them in more detail.

:22:47. > :22:56.Mark Carney may want to stay on for eight years.

:22:57. > :23:07.This is the Guardian story, disgruntled employees. Apparently

:23:08. > :23:11.executives are earning 183 times more than their input use, which is

:23:12. > :23:17.causing employees to be upset and disgruntled. Does that upset you

:23:18. > :23:24.that I earn that much more than you? It is disgusting!

:23:25. > :23:32.Mark Carney says he has more to do, but some may think, maybe it is

:23:33. > :23:38.something to do with what happened in Canada, the politics. It has been

:23:39. > :23:41.assumed that Mark Carney had political ambitions, we had the

:23:42. > :23:49.election in Canada, the Liberals came through to win well. That has

:23:50. > :23:52.perhaps closed the door from a political standpoint for Mark Carney

:23:53. > :24:02.going back to Canada and running for office. When he arrived, he took

:24:03. > :24:05.over from Mervyn King, he had responsible at the four UK interest

:24:06. > :24:10.rates, about the role has broadened, we have talked about the Bank of

:24:11. > :24:15.England looking at powers to rein in the buy to let market, so there is a

:24:16. > :24:19.broader remit that he has, and he is looking to embrace it theoretically

:24:20. > :24:28.and look for a full eight year term, rather than five years. Let's talk

:24:29. > :24:31.about the story in the Guardian. Workers are demotivated by

:24:32. > :24:38.executives' high-paid. We have had a couple of tweets. Ben says, is the

:24:39. > :24:45.executive contribution 183 times that of the employees? I doubt it.

:24:46. > :24:50.The article shows that executives, Chief Executive 's, are paid 183

:24:51. > :24:59.times more than employees. The pay gap is getting wider. Yes, it was

:25:00. > :25:05.even getting wider in the crisis. Another by-product of this, there

:25:06. > :25:11.were some numbers over the weekend, looking at the nationality of Chief

:25:12. > :25:16.Executive 's, we have seen an increasing use of foreign nationals

:25:17. > :25:18.in terms of leadership roles. It is like the Premier League, imported

:25:19. > :25:28.foreign talent helping to bid up wages. Is that like you? Have paid

:25:29. > :25:34.more than anybody else? I cannot see it going backwards or

:25:35. > :25:41.narrowing. We will not see legislation or anything of that

:25:42. > :25:45.nature to address the problem. She did that a bit too early!

:25:46. > :25:49.You did not see me doing this! There will be more business news

:25:50. > :25:53.throughout the day on the BBC Live webpage and on World

:25:54. > :25:56.Business Report.