:00:00. > :00:13.This is Business Live from the BBC with Ben Thompson and Sally Bundock.
:00:14. > :00:15.America exports gas for the first time,
:00:16. > :00:18.but, as prices slump, is it really financially viable?
:00:19. > :00:37.Live from London, that's our top story on Tuesday 12th January.
:00:38. > :00:40.It is a landmark moment for America, but comes as oil prices
:00:41. > :00:47.China makes a move on Hollywood -
:00:48. > :00:51.China's richest man splashes $3.5 billion on a stake in the studio
:00:52. > :00:58.Here's how Europe opened after Japan's Nikkei slips to lowest
:00:59. > :01:02.close in nearly a year, as China's sell-off leaves it down
:01:03. > :01:22.We'll get the Inside Track on a big name in the alternative car industry
:01:23. > :01:24.- Tesla's Elon Musk tells the BBC all transport will eventually go
:01:25. > :01:30.He will tell us who he feels most in terms of competition.
:01:31. > :01:33.And we want to know what you think is the best technological invention
:01:34. > :01:43.Let us know - just use the hashtag #BBCBizLive.
:01:44. > :01:47.I hope you will say the best invention of the last 12 months is
:01:48. > :01:50.this programme! Let us know! Today marks a significant day
:01:51. > :01:53.for the world's energy markets. America has become a supplier,
:01:54. > :01:55.rather than consumer, It's the first time ever
:01:56. > :01:59.that it's exported gas. But the celebrations
:02:00. > :02:02.could be short-lived. Like oil, the price of gas has
:02:03. > :02:06.fallen sharply and is now worth only a third of what it was
:02:07. > :02:08.just two years ago. So while the venture
:02:09. > :02:11.is less financially viable than when it was originally
:02:12. > :02:13.imagined in 2011, it is Many estimates put the US
:02:14. > :02:19.as the third largest exporter in the world by the end
:02:20. > :02:24.of the decade. And what we're talking
:02:25. > :02:26.about is liquefied natural gas or LNG, and whilst it requires
:02:27. > :02:28.costly tanks to transport, once converted back into natural
:02:29. > :02:32.gas, it can be used for almost anything from cooking to heating
:02:33. > :02:39.or powering a factory. Giles Farrer is the research
:02:40. > :02:55.director for Global Gas and LNG How revolutionary is this? It is
:02:56. > :03:04.kind of a big deal for the world gas market. The US, it is going to
:03:05. > :03:09.change the way that LNG is sold traditionally. LNG is sold under
:03:10. > :03:16.long-term contracts from one country to another on prices linked to oil.
:03:17. > :03:20.The start of energy exports from the US can be sold flexibly, so anybody
:03:21. > :03:27.can buy it, and it is going to break down the mechanism of linking Gaster
:03:28. > :03:33.oil by introducing US gas prices to the world markets. What is being
:03:34. > :03:37.introduced today and in the days ahead is a drop in the ocean in
:03:38. > :03:40.terms of the world market, but many are saying in the future America
:03:41. > :03:47.could be a big player. Your thoughts? Currently global
:03:48. > :03:50.production is about 250 million tonnes a year, and over the next
:03:51. > :03:56.five years new production from Australia and the US is going to add
:03:57. > :04:01.about 50% to the world market. At the same time, what we are going to
:04:02. > :04:06.see, what we are already seeing, is faltering demand growth in Asia and
:04:07. > :04:11.a surplus of LNG supply in the market. Presumably that means gas
:04:12. > :04:15.prices will come down even further? Does that mean good news for the
:04:16. > :04:22.customer, those of us using gas all the time, seeking cheaper bills?
:04:23. > :04:29.Yes, it should do. What we are expecting to see is a lot of this
:04:30. > :04:32.excess LNG will end up in the European, north-west Europe and UK,
:04:33. > :04:36.where there is an abundance of infrastructure already built, so it
:04:37. > :04:40.will naturally go into this market. What that means is that you are
:04:41. > :04:46.going to have new gas competing with existing suppliers into the European
:04:47. > :04:52.market, so Norway and Russia. They are going to see competitive
:04:53. > :04:56.pressure, and we expect that to drive gas prices down. From many
:04:57. > :05:01.countries already under a lot of pressure, Australia is a big
:05:02. > :05:06.exporter of gas, brusher reeling from low prices, Australia battling
:05:07. > :05:09.with the Chinese economy slowing significantly and not consuming a
:05:10. > :05:14.lot of its commodities. For some of these countries, this is not great
:05:15. > :05:20.news at all, they are already facing quite difficult economic times? Our
:05:21. > :05:23.view is that gas prices in Europe are going to be about one third
:05:24. > :05:28.lower than they have been nevertheless to five years in the
:05:29. > :05:33.next five years. Gas prices in Asia the stock market are expected to
:05:34. > :05:38.come down significantly as well. We expect the revenues the big
:05:39. > :05:42.producers to come down a lot. Should be tough times ahead. Thank you so
:05:43. > :05:44.much for sharing your thoughts on that.
:05:45. > :05:57.Oil prices have fallen below $31 a barrel to new 12-year lows.
:05:58. > :05:59.Its fallen almost 20% since the beginning of the year.
:06:00. > :06:01.A slowdown in China has added fears of slowing consumption
:06:02. > :06:09.Irish drug-maker Shire has won its six-month battle to buy
:06:10. > :06:15.The deal is worth $32 billion and will put Shire in a strong
:06:16. > :06:19.position as it looks to develop vaccines for rare disease.
:06:20. > :06:21.Baxalta specialises in unusual blood conditions, cancers
:06:22. > :06:30.The world's biggest coffee chain, Starbucks, says it aims to open 500
:06:31. > :06:34.Starbucks aims to create 10,000 jobs in the country every year over
:06:35. > :06:39.the next four years as it continues to expand.
:06:40. > :06:43.The metals and mining firm Alcoa has announced a net loss of $500 million
:06:44. > :06:49.for the final quarter after incurring heavy costs to close
:06:50. > :06:56.The New York-based company has been cutting back on capacity as a result
:06:57. > :07:10.I feel like we are always mentioning companies, countries or
:07:11. > :07:13.organisations that are struggling with the price of commodities around
:07:14. > :07:19.the world. It is interesting, the aluminium
:07:20. > :07:26.producing subsidiary of Glencore filing for bankruptcy. All of this
:07:27. > :07:29.part of the restructuring that Glencore is having to go through to
:07:30. > :07:35.deal with that falling commodity price. That news just in, the
:07:36. > :07:44.aluminium producing subsidiary filing for bankruptcy.
:07:45. > :07:49.This story caught my eye, Murdoch to marry or, surely the most
:07:50. > :07:56.interesting announcement from a businessman today! -- Murdoch to
:07:57. > :08:05.married Jerry Hall. Rupert Murdoch, owner of News Corporation, has
:08:06. > :08:08.married the model Jerry all, who has not been married before but had a
:08:09. > :08:13.long relationship with Mick Jagger. Apparently they started courting in
:08:14. > :08:18.the Rugby World Cup... They came out in public.
:08:19. > :08:23.I love that they announced it in the Times.
:08:24. > :08:26.This is not an April fool, by the way, and January the 12th!
:08:27. > :08:29.Chances are you won't have heard of China's Dalian Wanda Group.
:08:30. > :08:33.Today it's confirmed a $3.5 billion deal to buy a controlling stake
:08:34. > :08:37.in Hollywood film studio Legendary Entertainment,
:08:38. > :08:40.the makers of Jurassic World and the Batman film The Dark Knight.
:08:41. > :08:53.Steve, why is this so significant? We have talked about many people not
:08:54. > :08:58.knowing this company or indeed knowing China's richest man but it
:08:59. > :09:01.is a significant stake? It is significant because it puts
:09:02. > :09:07.China right at the heart of movie-making. What you have got is
:09:08. > :09:12.big Chinese money buying a big Hollywood company, a maker of
:09:13. > :09:16.movies. At the moment, China is poised to become the biggest movie
:09:17. > :09:23.market in the world, a lot of people in Hollywood think that takings in
:09:24. > :09:28.China next year will exceed those in America. If you can make Hollywood
:09:29. > :09:31.films in a great big studio, perhaps the world biggest, being built in
:09:32. > :09:36.eastern China, you will then tap into that big market. You then raise
:09:37. > :09:41.the prospect of a global movie industry with films tailored for
:09:42. > :09:47.China and Chinese censorship, and Hollywood and Europe. It changes the
:09:48. > :09:55.way we think about movies. OK, good stuff, thanks very much.
:09:56. > :09:58.Just to look at some of the numbers, falls in Shanghai fuelled by ongoing
:09:59. > :10:09.worries over China's economy, taking its toll on the other main markets,
:10:10. > :10:12.the nick a down 2.71%. Shanker's market down about 15% so far this
:10:13. > :10:15.year, we're only halfway through the month and it has been a pretty
:10:16. > :10:21.dreadful time. The impact on commodities is all too clear, Brent
:10:22. > :10:26.Crude falling another 2.2% at $30 a barrel. In the UK, we will get an
:10:27. > :10:29.update on all sorts of things, including the manufacturing sector,
:10:30. > :10:32.expected to beat up about 0.1% after expected to beat up about 0.1% after
:10:33. > :10:42.a fall of zero point 5% in October. But the focus here will likely be
:10:43. > :10:45.on the retail sector with a string of updates on Christmas trading,
:10:46. > :10:47.not least supermarket chain Morrisons managing to reverse
:10:48. > :10:51.its downward spiral with a small rise in sales, and Debenhams doing
:10:52. > :10:56.much better than expected. We will talk about that and other
:10:57. > :10:56.more in a moment. What about Wall Street?
:10:57. > :11:00.Neda is in New York with the details on the trading day ahead.
:11:01. > :11:11.We get fourth-quarter earnings results for CSX, which has been hurt
:11:12. > :11:13.by steep declines in call, so investors will be interested to see
:11:14. > :11:17.their outlook on the mining industry. They will also be looking
:11:18. > :11:24.out for news on whether a possible merger could be on the news with
:11:25. > :11:29.Canadian Pacific after their bid to acquire CSX's closest competitor was
:11:30. > :11:32.rejected. We will see how optimistic small businesses are feeling when
:11:33. > :11:39.the confidence index for December is released. Marc fields will speak at
:11:40. > :11:40.an auto industry confidence in the trade -- in Detroit where he will
:11:41. > :11:44.give his projections for 2016. Joining us is Anne Richards,
:11:45. > :11:53.chief investment officer Nice to see you. Behind us we have
:11:54. > :11:59.got Germany and London but also the oil price, down another 2% today.
:12:00. > :12:03.Will it go below $30 per barrel? We are watching its every move at the
:12:04. > :12:08.moment. It feels like it will go lower from here, you have seen a
:12:09. > :12:13.number of forecasters radically talking as low as $20 oil. There is
:12:14. > :12:16.a lot going on behind the scenes. One of the things you can see in the
:12:17. > :12:20.background is that quite a lot of the oil producing countries have
:12:21. > :12:26.been in pegging themselves from the dollar, giving them a bit more
:12:27. > :12:31.scope, bit more slack, in order to manage the balance between cost and
:12:32. > :12:34.revenue. Costs are no longer dollar-denominated, which means they
:12:35. > :12:39.can cope with the oil price longer. They need to do everything they can,
:12:40. > :12:43.don't they? Countries like Nigeria, Angola, not the big players like
:12:44. > :12:47.Saudi Arabia but the other Opec members that are struggling,
:12:48. > :12:52.Venezuela? The smaller countries have, you mentioned Angola, that is
:12:53. > :12:57.an example, have begun to give themselves the slack. As long as the
:12:58. > :13:00.big producers like Saudi are pegged to the dollar they will feel the
:13:01. > :13:05.pain from this. The demand side has not picked up enough to cope with
:13:06. > :13:10.the increase in supply. We know there is limited storage capacity
:13:11. > :13:14.left out there now. We have not yet reached the bottom of this oil
:13:15. > :13:17.price. When we are looking at this state of the worst start to the year
:13:18. > :13:23.for a long time in the global markets, it is difficult to see what
:13:24. > :13:29.will get us out of that pessimism and fear that things will get worse
:13:30. > :13:33.before they get better. The Chinese central bank today
:13:34. > :13:37.pumping $12 billion into the markets, doing all they can as well
:13:38. > :13:41.but it seems to be lingering, the pessimism. The Chinese have got
:13:42. > :13:47.themselves hooked on this interventionist mantra, they are
:13:48. > :13:51.nervous about letting the market, the stock market, decide the level
:13:52. > :13:54.of the currency. Part of the intervention China has been doing is
:13:55. > :13:58.part of a long run strategy to become one of the IMF reserve
:13:59. > :14:04.currencies, in which case it needs to keep a relatively tight spread on
:14:05. > :14:07.the offshore market. You have got that intervention going on. But the
:14:08. > :14:11.other thing worth pointing out is that economic lead this is not a
:14:12. > :14:16.particularly bad start to the year. We have had a good data point from
:14:17. > :14:19.the US in terms of jobs data, we are seeing some sign of improvement once
:14:20. > :14:26.again coming through in Germany, so the macro environment is not what
:14:27. > :14:32.you would expect, so we might actually find it better once we get
:14:33. > :14:37.through this dispiriting period at the start of the year. That is very
:14:38. > :14:40.positive, we appreciate that! You will be back later with more to talk
:14:41. > :14:45.about, lots of stories in the press as ever.
:14:46. > :14:54.Some breaking news. News of an explosion in the Turkish city of
:14:55. > :14:59.Istanbul. Local media reports are saying several people have been
:15:00. > :15:02.injured. The blast happened in one of the city's main tourist
:15:03. > :15:07.districts. The area has been cordoned off by police. The cause of
:15:08. > :15:11.the explosion is not immediately known. As soon as we have more
:15:12. > :15:14.information about what's going on in Istanbul, we will update you, but
:15:15. > :15:20.that's something we're just hearing about at the BBC. Another line
:15:21. > :15:28.coming in to us. This is on the AFP News Agency, a strong explosion.
:15:29. > :15:33.This is in the tourist quarter near the church and the Blue Mosque. This
:15:34. > :15:36.copy saying several ambulances and the police are on the scene. There
:15:37. > :15:42.are pictures on the local TV channels. We will bring them to you
:15:43. > :15:43.as soon as we have them. A strong explosion reported in the tourist
:15:44. > :15:47.centre in Istanbul. Still to come,
:15:48. > :15:48.forecasting the future. We sit down with entrepreneur
:15:49. > :16:03.and innovator Elon Musk. Owning a car that is not
:16:04. > :16:06.self-driving in the future is like owning a horse.
:16:07. > :16:09.It's a big week for results in the UK grocery sector.
:16:10. > :16:23.Sainsbury's are out tomorrow, it's Tesco's turn on Thursday,
:16:24. > :16:25.but today Morrisons published its figures and they're
:16:26. > :16:29.The supermarket says like-for-like sales rose 0.2% in the nine
:16:30. > :16:40.Let's get more from Paul Thomas who is able to join us from our news
:16:41. > :16:43.floor. Paul, the share price is a big reaction, but when you look at
:16:44. > :16:47.the figures, it is a tiny weany move. Put it in prospective for us?
:16:48. > :16:52.It is a small move, but they have had a number of months and quarters
:16:53. > :16:58.of reporting sales in decline. So this is great progress and festive
:16:59. > :17:02.cheer for Morrisons and for Dave Potts, there is more work to do, but
:17:03. > :17:07.perhaps an indication that they are heading in the right direction with
:17:08. > :17:11.their recent work. It is a busy week for retailers, but the supermarkets
:17:12. > :17:15.seem to have been hit badly. Next were down and John Lewis bucking the
:17:16. > :17:18.trend doing reasonably well, but Marks Spencer's, a difficult time,
:17:19. > :17:21.it is hard to pick out the winners and the losers of the Christmas
:17:22. > :17:26.period? By the end of the week we will have a better idea. Indications
:17:27. > :17:30.are Morrisons was a surprise coming in at 0.2% increase. Likely to be an
:17:31. > :17:42.increase for Sainsbury's and like to be a drop for Tesco's. So what is
:17:43. > :17:51.Morrisons getting right that perhaps its rivals are not? I think they
:17:52. > :17:55.have focussed back on through David Potts' strategy, reducing costs at
:17:56. > :17:57.head office, more colleagues for the shop floor to improve the customer
:17:58. > :18:02.experience within the shop. There is a lot of work to do in terms of
:18:03. > :18:08.range and freshness, and a lot to do on marketing. They have a provenance
:18:09. > :18:14.with their fresh, but their own farms and vertical supply chain, and
:18:15. > :18:19.they could do more to drive that home, but getting the basics right,
:18:20. > :18:23.the customer journey and that's what helped them and that's what they
:18:24. > :18:29.need to focus on in the coming months and in the future.
:18:30. > :18:34.Paul Thomas, thank you. Shares up about 8%, up nearly 15 points so far
:18:35. > :18:37.this morning as a result of the figures. Lots more on the website.
:18:38. > :18:42.More detail and analysis, Sainsbury's to come next.
:18:43. > :18:46.Our top story, the US starts exporting gas with the first
:18:47. > :18:50.But with falling prices how significant will it be for consumers
:18:51. > :18:58.Now to a big name in field of innovation, a man known
:18:59. > :19:01.for increasingly making futuristic ideas a reality.
:19:02. > :19:04.Elon Musk is Chief Executive of Tesla Motors, a company that
:19:05. > :19:07.grabbed headlines after its all-electric sport luxury cars.
:19:08. > :19:13.His cars are also competing in the driverless space too,
:19:14. > :19:22.One is SpaceX, an aerospace company seeking not only to lower the cost
:19:23. > :19:29.of space travel, but also enable to colonisation of mars.
:19:30. > :19:35.His net worth is $12.4 billion, making him the 39th wealthiest
:19:36. > :19:40.Our technology correspondent Rory Cellan-Jones spoke to him
:19:41. > :19:44.exclusively and started by asking him, how common
:19:45. > :20:06.I think all transport will go fully electric. I see the value of Tesla
:20:07. > :20:11.as a catalyst. I think Tesla maybe when one looks back on it, it might
:20:12. > :20:15.accelerate that transition by a decade maybe, maybe more.
:20:16. > :20:20.Are you on the road to producing a model that far more people could
:20:21. > :20:27.aspire to own? Yes. The model three, that's the third part of our
:20:28. > :20:30.strategy which produce high volume, low-cost car and we expect to be in
:20:31. > :20:35.production with that at the end of next year. In order to have a
:20:36. > :20:39.substantial effect on transportation, we have to make the
:20:40. > :20:43.cars affordable. So I think the model three is extremely important
:20:44. > :20:47.as part of that strategy unless there is affordable car, we will as
:20:48. > :20:51.you alluded to earlier, only have a small impact on the world. So it
:20:52. > :20:57.needs, we need to make a car that most people can afford in order to
:20:58. > :21:04.have a really substantial impact. Do you see Apple building a car and
:21:05. > :21:11.that maybe being a threat to you? Well, I think, I would encourage
:21:12. > :21:17.more participation by whoever it is to create electric vehicles. It is
:21:18. > :21:21.quite hard to do. But I think companies like Apple will probably
:21:22. > :21:29.make a compelling electric car. It seems like the obvious thing to do.
:21:30. > :21:35.Are you betting that that's going to happen? Have you heard something? It
:21:36. > :21:41.is hard to hide when you have hired over 100 engineers to do it. So you
:21:42. > :21:46.think Apple will do it? Yes, do I. You have been a leader in autonomous
:21:47. > :21:55.driving. How far do you think that's going to go? I mean, I think, the
:21:56. > :22:01.two biggest revolutions in transport are electrification and autonomy.
:22:02. > :22:04.Those are the two biggest innovations since the moving
:22:05. > :22:09.production line. Autonomy is extremely important and I think in
:22:10. > :22:14.the long-term nobody will buy a car unless it is autonomous. In ten
:22:15. > :22:19.years time, what will I be driving? Will I be driving at all? Will I be
:22:20. > :22:24.pressing a button on an app and a car will drive up and take me where
:22:25. > :22:30.I want to? You will only drive if you want to drive. It will be like
:22:31. > :22:34.owning a car that is not self-driving in the long-term will
:22:35. > :22:38.be like owning a horse. You would own it and you would use it for
:22:39. > :22:43.sentimental reasons, but not for, you know, not for daily use really.
:22:44. > :22:50.Now, you're in three extraordinary industries. You are in electric
:22:51. > :22:56.cars, you're in rockets, and you're in solar energy. What unites you,
:22:57. > :23:07.what unites those three interests? Well, what I'm trying to do is to
:23:08. > :23:11.minimise future threats or take whatever action I can to ensure the
:23:12. > :23:18.future is good. I didn't expect these companies to succeed. I
:23:19. > :23:26.thought they would most likely fail, particularly Tesla and space X. At
:23:27. > :23:31.the beginning I thought SpaceX and Tesla had a 10% chance of success
:23:32. > :23:33.and I'm surprised to see that we're alive. It's great. I wasn't
:23:34. > :23:45.expecting that! You can hear more of that interview
:23:46. > :23:49.online. He was talking about what he believes are the greatest
:23:50. > :23:52.innovations over the last few decades, electrification being one.
:23:53. > :23:56.We asked you for your tweets on what you thought was the best invention
:23:57. > :24:03.over the past few years. Paul says, it is easy. Publicly accessible
:24:04. > :24:06.internet changed the world for him. Ozzy, said satellite TV because it
:24:07. > :24:13.means he can watch us on the programme! Well done. Another one,
:24:14. > :24:20.internet, followed by GPS changing the way we navigate.
:24:21. > :24:31.Anne is back. I think Segways. You have been on one? I have been on an
:24:32. > :24:38.off road Segway. You have got ones with chunky wheels. We want footage,
:24:39. > :24:44.please! Need to know basis. That might even
:24:45. > :24:52.top Rupert Murdoch's engagement news!
:24:53. > :24:56.China, an important market for Rolls-Royce, I imagine. China is an
:24:57. > :25:01.important market for Rolls-Royce, I imagine at one stage it was the most
:25:02. > :25:05.important market. It would be in the top three markets for it. But the,
:25:06. > :25:11.the interesting thing that you see going on here in China is the
:25:12. > :25:15.anticorruption drive and this desire to shy away from any kind of
:25:16. > :25:18.conspicuous consumption has come through in the Rolls-Royce sales,
:25:19. > :25:21.but happily for Rolls-Royce we are seeing in other parts of the world
:25:22. > :25:25.beginning to pick up, that potential slack that's out there. The Middle
:25:26. > :25:29.East is going well and places like South Korea also doing well. It is a
:25:30. > :25:33.great success story as a business, but you can see this pain in China
:25:34. > :25:37.coming through. Coming through for another company.
:25:38. > :25:43.Anne, thank you. More to talk about, but no time. We want to remind you
:25:44. > :25:50.of the breaking news of an explosion in the Turkish city of Istanbul.
:25:51. > :25:52.Local media reports say several people have been injured and there
:25:53. > :26:12.could be casualties. Hello there. Good morning, if you
:26:13. > :26:16.haven't yet stepped outside, well brace yourself it feels cold out
:26:17. > :26:17.there. A really cold wind particularly in western