18/12/2015 BBC Business Live


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This is Business Live from BBC News with Maryam Moshiri and Aaron


As migration tops the agenda of today's EU summit,


we look at how much of the money that's been promised to deal


with the crisis has actually been delivered.


Live from London, that's our top story on friday 18th December.


As EU leaders meet to thrash out an agreement on how to solve


the ongoing migrant crisis, questions are being asked about how


much money is really getting to those who need it and if enough


of the EU's 28 members are really pulling their weight financially.


FTSE 100 bosses earned 183 times the average salary


A report out today says that's starting to cause friction


We're taking a look at CEO pay and the question of how much


Stocks in the US fell sharply on Thursday,


as traders turned their attention away from the Federal Reserve


Shares in Asia followed, and this is how the markets


in Europe are doing right now.


And we'll be getting the inside track from this bloke -


our business editor Kamal Ahmed who's going to take us


through the top stories over the past week -


we'll be talking oil prices, the Fed rate rise and making money


Today - we want to know what you think about that story


about workers being demotivated by executives high pay.


Should the big boss of a company get something like 183 times higher


salary than the lowest paid that company?


As the European Union holds its final summit for 2015,


there's one topic that will be driving the agenda:


While the EU has promised to find homes for 160,000 refugees,


it's also thrown a huge amount of financial aid behind the issue.


The European Commission has pledged that member states will contribute


But so far, not enough member states have responded to that call.


There's a massive shortfall


and what individual stats have agreed to contribute.


During a humanitarian crisis or natural disaster,


politicians and world leaders tend to rally around and pledge billions


But often, not all the money makes it to those who need it most.


For example, after the 2010


politicians worldwide pledged $4.5 billion for reconstruction projects


But according to the United Nations, only 53% of that money was actually


delivered, and only a handful of donors fully met their pledges


Eloise Todd is the Global Policy Director of ONE,


Thank you for joining us. Marion was just highlighting some of the


numbers. It is easy to pledge something, it is another thing to


cough up the money, a shortfall of nearly $2.5 billion, who coughs that


up? Who's shoulders does that for one eventually? Kellie it is


important that that is shared amongst the people that can pay.


There are two particular priorities right now, firstly that those in


need get the money and the support that they need on our shores, but


secondly and crucially we must make sure that money for the refugees in


the crisis does not come at the expense of the poorest in the world


because right now what we are seeing is development budgets being dipped


into by countries like Sweden in order to respond to the crisis on


our shores. We don't want to let this to send into a 0-sum game at


the expense of the poorest in the world. You use the phrase, who can


pay? If we talk about Europe, there are some poorer economies than


others, but at the moment not all of them are doing that well. Should the


wealthy economies in Europe pay more, do you think, than the others


all should be shared out equally? I am trying to get a sense. Everybody


needs to pay up and contribute to this Dunne these needs. What we have


seen is some countries and entities doing better than others in this.


The European Union for example managed to find extra money in the


2016 budget to support both the refugees and increase development


aid, so those programmes could be ongoing, and what we need to see is


more of that kind of flexibility from countries across the world so


they have contingency plans, so when these kind of crises occur, we are


not raiding long-term programmes that ultimately save lives. Where


does the money actually go? What is the area of most need right now?


Right now, there are several needs. We need to talk about the long-term


stability in these countries. We need to provide for the people in


refugee camps that don't have enough money, and we need to make sure that


we sustain the long-term development programmes across the Middle East


and also in sub Saharan Africa to make sure that we have the long-term


development that brings stability to these people. We have been tracking,


for example, last year in the Ebola crisis, we undertook a big programme


to look at how many were spent, and dispersed and pledged, and it is


crucial that governments, when they sign up today at the European


council, when they say the money they are going to pledge they need


to be absolutely crystal clear that the budget lines it is coming from,


where they intend it to go to and how they will be spending that


money, so that groups like ours at the One campaign can help them to


account those actions. We appreciate your time, good luck with anything,


thank you per joining us. IMF chief Christine Lagarde


is to stand trial in France for alleged negligence over a 400


million euro payment to businessman She was finance minister


in President Sarkozy's government at the time Mr Tapie received


the payout for losses he had blamed on state controlled


bank Credit Agricole. Mr Tapie had supported Mr Sarkozy


in the 2007 presidential election. Ms Lagarde's lawyer described


the court's decision as "incomprehensible",


and said the IMF boss would appeal. Research from the Chartered


Institute for Personnel and Development has found that three


in five workers in the UK are demotivated by the amount


the chief executive It found that FTSE 100 bosses earned


183 times the average salary China's - and so the world's -


demand for coal could be peaking - according to a report


by the International Energy Agency. A slowing economy and a move


towards less energy intensive industries is reducing


coal consumption - as well as the state's attempts


to clear up the choking smog that The IEA says India will take over


from China as the world's biggest Coal use there will rise but not


enough to offset declines elsewhere I am glad you did that story. Put


those glasses back on, you look hot. I am glad you do that story about


coal. It is called a Segway. It is Ashley quite a sad story, the last


UK deep coal mine to close, interesting we have just have that


report about Peak coal, or call speaking, -- or coal Peking, the


very last coal mine, deep coal mine, is closing but the UK will style


after -- will still have to import 30 million tonnes. The likes of


India saying we have to use more coal. But IS find out what else is


making the news around the world. Mariko Oi is in Singapore with news


that the Bank of Japan has launched a plan for firms to boost


wages and investment. They have done it again. Another


form of stimulus. But what ever they did, I do know, the markets were not


happy. The McKay was down nearly 2% today. Indeed, Aaron. It came as a


huge surprise -- the Nikkei. The bank of Japan announced further


stimulus measures mainly for companies that are actively


investing and hiring more people and that is because even though a lot of


companies have been reporting very strong profits, they have not been


employing more people, which of course the government and the


central bank want them to do in order to boost the economy activity.


So at least there are some incentive there. But investors did not seem to


think that would be enough to encourage companies to start hiring


more people instead of racking up their own cash. So, as a result,


after the announcement, Japan's Japanese shares soared as much as 3%


but shortly after they started to fall, ending down almost 2%. Thank


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


us. Asian stock markets were lower


Friday as a persistent drop in the price of oil weighed


on investor sentiment, eroding gains sparked the day before


by the Fed's first rate hike Wall Street dropped


as oil prices stayed low. In Europe, stocks shares fell


on Friday to retreat from a one-week high reached in the previous


session, with supermarket group Casino losing more ground


in the wake of a negative research And now Nada Tawfik can tell us us


what will be making the headlines in the business world


in the United States today. US stocks on Thursday snapped a


three-day rally. The market of the day of the Fed's first rate rise in


nearly a decade and down the day after, so how will they end the


week, especially with oil still weighing on energy stocks? It will


be a quiet day on Wall Street without any major event in the


calendar, but there right few earning reports out. Carnival


Corporation will post fourth-quarter results. Analysts will be interested


to see how the company is coping with the negative effects of a


strong dollar and weak global demand. There will also look to see


how the Paris attacks in November affected its booking on cruises.


Blackberry and restaurant chain Olive Garden also report quarterly


sales and profit. Joining us is Jeremy Stretch,


head of currency strategy at CIBC You will get a staff pass soon,


Jeremy. Can I stop with the stop -- top story, the cost of the EU


summit, migration, a big shortfall, do the markets focus on that?


Everyone is focused at the moment on what it is costing say Europe, but


there is a benefit Europe as well. Indeed, if you take the very


long-term macroeconomic environment and consider the way the term of


reference is working in Europe, ageing populations, low levels of


birth rate, if you look at the German population it is forecast to


be going down over time, so they actually require workers. So you


could argue from a long-term economic perspective, the net


migration into the mainland of Europe is a necessary constituent


and will help to generate growth diameters. Politically it is very


challenging, particularly for Angela Merkel for her re-election in 2017


but over the longer term, you can argue aggression in the northern


Europe, even into the UK, as we have seen in the last ten to 15 years,


provide a benefit to economic performance. Let's talk about oil


prices. We talked about the Fed reserve but oil prices are really


staying quite low and we are seeing the possibility of the US lifting


its 40 year ban on oil exports. We continue to see an industry


overhang, so there are too much being pumped and not enough demand.


We saw a couple of weeks ago Opec saying we're not going to reduce the


amount we are pumping, and the Saudi Arabian said not reducing our


output, so there is still this overhang. Global demand is still too


low, you are talking about China and the impact on coal, it is the same


impact in terms of oil where they are not using as much as they have


done previously, partly due to growth dynamics, but also due to


changing growth in the domestic market. Oil prices continue to be


dragged lower but also as the US dollar appreciates, that also


depresses the dollar .com and dated oil price, which is bad news for --


dollar-denominated oil price. It is good news for the procedures. Thank


you much. Still to come, we'll be


getting the inside track from this bloke - our business


editor Kamal Ahmed who's going to take us through the top


stories over the past week. You're with Business


Live from BBC News. Energy firm NPower has been fined


a record ?26 million Let's go live to Joe Lynam. He has


the details. There is one thing that gets people's backs up. It is how


they are treated by their energy company because next year's shopping


bills annual rent or mortgage, the next biggest cost in your monthly


outgoings is your energy bills and this particular company, Npower, has


been fined ?26 million, the biggest ever fine for a domestic energy


company. They have been done so for billing late, billing in accurately


and not dealing with the complaints when you phone up to complain about


those bills. I am showing a chart for RWE, the German giant, that owns


Npower. Their parent company have had a really nasty year, shares down


60%, simply because oil prices are so radically down which means the


amount of money they can make is also going to be down, Npower have


to face this bill. If they do not meet a new set of targets for


standards by June this year they won't be allowed to sell energy in


the UK from now on. A pretty Draconian change.


It was almost like he blew a kiss them!


That was for me! A pathway to a deal on new terms


for Britain's membership within the EU has been found


by European leaders, The Prime Minister said good


progress was made at the EU summit in Brussels, but it would be tough


to finalise terms by the proposed Mr Cameron is demanding


change on four issues, including curbing in-work benefits


for EU migrants in the UK. We heard about the resignation of


Heathrow's chairman, the front page of the Daily Telegraph... I am


sorry, am I disturbing your peace? The front page of the Daily


Telegraph has more on the story, he has quit the group after delays over


the running of Heathrow. The government delay, that is.


Sorry, we could not bring that for you!


EU leaders will wrap up a major summit in Brussels today.


Top of the agenda is the growing migrant crisis across the region,


with hundreds of thousands of refugees coming into Europe over


Billions of dollars in aid has been pledged by governments to help deal


And now let's get the inside track on Fed rate rise, oil hitting $35


I am not making any money on it! It is great to see you. Can we start


with oil? A lot of people did not realise that the US had a ban on


exporting crude oil, they will lift it. Nvidia year, we could see


American oil, Iranian oil, Libyan oil, a lot of oil, when we already


have a lot. The global economy is relatively slow in growth, you have


a demand problem and oversupply, just as your previous guest said.


You are right to pick up on those points. Iran, with the sanctions


being lifted, there will be an implementation date next year when


they can start properly servicing and exporting oil again. Saudi


Arabia is not going to start cutting its oil output because it knows it


will lose market share. Iran and Saudi Arabia are not the best of


friends. You cannot see that this supply issue is going to be tackled


in any way. At the same time, countries like Russia are still


trying to pump as much oil as they can to support their economies,


which have been hugely affected by the low oil price. This problem of


oversupply and flat demand will continue through next year, and you


cannot really imagine that there will be much upward pressure in the


price at all. We are predicting more rate rises from the Fed, how will


that impact the rest of the world, in particular European rates?


Psychologically it increases pressure on the big central banks in


Europe, the Bank of England and the European Central Bank. They are in a


negative interest rate environment. The growth is still patchy in


Europe, although getting slightly better. Growth is better in the UK,


the Bank of England governor has said that although the British


economy is often seen as a assist to the American economy, it is not time


yet in the UK for rate rises, the UK may be first through 2016, even that


UK growth is stronger. It is important to look further towards


Asia and Japan. Japan is also in a very low interest rate environment,


growth is sluggish. You are getting the great divergences, America will


go in run -- one Direction, the rest of the world will go in another.


China is devaluing. That will lead to capital flows, which was going


towards America and away from the lower returns in Asia and Europe,


which could be a tension, and a big theme. All that money continues


flowing into North America, what does that mean's if you are thinking


about global funds and they are making big investment into


infrastructure and rebuilding economies and corporate in different


countries, they are thinking, where am I going to get the best returns


from? America becomes much more attractive than Asia, particularly


where there is still a low interest rate environment. America becomes


more attractive as an investment home for these big global funds.


Let's talk about Star Wars. The geek in me is desperate to see the film.


You are a huge fan. I remember queueing with my father at the age


of eight at the local cinema to see the first one.


You were 20 then! I am a massive fan. I am taking my son and daughter


this weekend. I am more excited than they are. What is amazing about it


is how Disney has made it not just into a film but into a business


franchise, merchandising, licensing. Disney leveraging the fact that it


owns ESPN, ABC, news channels, and it uses the power in the market to


ensure that it is not just the ticket prices they get the money


from, it is all the things we buy, the merchandising, making it into a


multi-billion pound business, what a great success. Thank you.


Let's see what other stories are being talked


Let's have a look at some of the stories that are making news


around the world before we discuss them in more detail.


Mark Carney may want to stay on for eight years.


This is the Guardian story, disgruntled employees. Apparently


executives are earning 183 times more than their input use, which is


causing employees to be upset and disgruntled. Does that upset you


that I earn that much more than you? It is disgusting!


Mark Carney says he has more to do, but some may think, maybe it is


something to do with what happened in Canada, the politics. It has been


assumed that Mark Carney had political ambitions, we had the


election in Canada, the Liberals came through to win well. That has


perhaps closed the door from a political standpoint for Mark Carney


going back to Canada and running for office. When he arrived, he took


over from Mervyn King, he had responsible at the four UK interest


rates, about the role has broadened, we have talked about the Bank of


England looking at powers to rein in the buy to let market, so there is a


broader remit that he has, and he is looking to embrace it theoretically


and look for a full eight year term, rather than five years. Let's talk


about the story in the Guardian. Workers are demotivated by


executives' high-paid. We have had a couple of tweets. Ben says, is the


executive contribution 183 times that of the employees? I doubt it.


The article shows that executives, Chief Executive 's, are paid 183


times more than employees. The pay gap is getting wider. Yes, it was


even getting wider in the crisis. Another by-product of this, there


were some numbers over the weekend, looking at the nationality of Chief


Executive 's, we have seen an increasing use of foreign nationals


in terms of leadership roles. It is like the Premier League, imported


foreign talent helping to bid up wages. Is that like you? Have paid


more than anybody else? I cannot see it going backwards or


narrowing. We will not see legislation or anything of that


nature to address the problem. She did that a bit too early!


You did not see me doing this! There will be more business news


throughout the day on the BBC Live webpage and on World


Business Report.


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