:00:00. > :00:09.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:10. > :00:12.The world's business leaders are more pessimistic
:00:13. > :00:14.about the global economy as the annual meeting
:00:15. > :00:17.of the World Economic Forum kicks off in Davos.
:00:18. > :00:35.Live from London, that's our top story on Wednesday, 20th January.
:00:36. > :00:39.The slowdown in China, falling commodity prices
:00:40. > :00:43.and political instability are all fuelling the fall in confidence.
:00:44. > :00:49.We'll be live in Davos with the latest.
:00:50. > :00:51.Also in the programme, shares in Netflix surge as the video
:00:52. > :00:54.streaming firm signs up a record number of customers.
:00:55. > :01:05.Asian markets had a torrid session and it's left
:01:06. > :01:08.Asian markets had a torrid session and it's left European markets
:01:09. > :01:09.looking like this at the open.
:01:10. > :01:13.And in the growing online video market what will
:01:14. > :01:15.Will you be watching video in 360 degrees?
:01:16. > :01:21.Wistia is starting to do it, we'll ask the founder all about it.
:01:22. > :01:28.A report looks at ways of dealing with plastic waste. Can you
:01:29. > :01:32.completely eliminate plastic waste and recycle everything? Use the
:01:33. > :01:37.hashtag, BBC Biz Live. We are starting in that little
:01:38. > :01:45.Swiss Alpine town of Davos. As the annual meeting
:01:46. > :01:47.of the biggest names in global Confidence in the global economy
:01:48. > :01:54.is falling and it's getting worse. New figures from
:01:55. > :01:59.PriceWaterhouseCoopers show that 27% of chief executives thought global
:02:00. > :02:02.growth would improve over the next It's all being blamed the slowdown
:02:03. > :02:12.in China and slump Taking a look at oil,
:02:13. > :02:21.you can see Brent Crude prices have fallen more
:02:22. > :02:24.than 70% over the past 18 months A raft of other commodities have
:02:25. > :02:28.also been affected by the slump. Steel prices fell more
:02:29. > :02:34.than 35% last year. In the UK earlier this week,
:02:35. > :02:37.Tata steel announced a further 1,000 jobs would go as the
:02:38. > :02:39.firm battles high Joining me now from Davos is Russian
:02:40. > :02:45.business oligarch and billionaire, He's the main shareholder
:02:46. > :02:57.and the Chief Executive of Thank you very much for being on the
:02:58. > :03:01.programme. We've mentioned the key issues on the minds of those with
:03:02. > :03:06.you in Davos this year. From your point of view, what is the most
:03:07. > :03:11.poignant issue that needs to be tackled?
:03:12. > :03:14.Well, I think that the world has a lot of changes and a lot of
:03:15. > :03:20.opportunities and it is very important for us to understand
:03:21. > :03:23.better how to combine both how to address the challenges, but in order
:03:24. > :03:26.to regain growth in the global economy and the economies of
:03:27. > :03:31.specific countries like Russia. Many do agree that the outlook this
:03:32. > :03:35.year for the global economy is worse than we originally thought. The
:03:36. > :03:40.start of the year in terms of markets is very bad. The outlook for
:03:41. > :03:43.rush extra is very bleak indeed. Many are arguing your economy is
:03:44. > :03:54.going to have a particularly tough time.
:03:55. > :03:58.Just before I'd like to faem size Russia demonstrated strong
:03:59. > :04:04.resilience to the head wind in the economy despite more than two times
:04:05. > :04:12.depression of national currency, we have only 12% or 15% inflation rate.
:04:13. > :04:23.We have got decline in GDP m Russia, but what is good about Russia is
:04:24. > :04:27.that I hope that we are reaching new equilibrium and we could expect
:04:28. > :04:31.growth in the Russian economy again based on the fundamentals of Russia,
:04:32. > :04:34.it is a large country, a large population, with a lot of smart
:04:35. > :04:40.people which is very, very important, I think that on the back
:04:41. > :04:45.of this, we could expect growth. A big cushion, how big the growth will
:04:46. > :04:50.be so far we have a lot of structural problems as well to
:04:51. > :04:56.address and we should be providing remember forms in our country. The
:04:57. > :05:00.Russian economic ministry is in agreement with the IMF saying there
:05:01. > :05:04.won't be growth in Russia this year. The oil price continues to go down
:05:05. > :05:09.and that really affects your economy and let's talk about the steel
:05:10. > :05:13.price, you have been the Chief Executive since 1996. How are you
:05:14. > :05:20.weathering the fall in the price of steel in Russia?
:05:21. > :05:29.Definitely have a very serious situation. The global steel industry
:05:30. > :05:34.has a ratio below 70% which leads to a significant price decline like you
:05:35. > :05:41.have alluded and we see the same in Russia, but I see a lot of strength
:05:42. > :05:45.in the Russian steel industry being cost effective and we invested a lot
:05:46. > :05:52.to improve our quality and product mix. I do believe that the Russian
:05:53. > :05:57.companies are comparative in the global scale, but decline in our
:05:58. > :06:00.economy and we saw a decline in steel con tumption and it is a
:06:01. > :06:12.problem, but I would say the majority of Russian steel companies
:06:13. > :06:17.are a bit down. They are sustainable and we have high margins. I still
:06:18. > :06:22.hope that we could sustain this turmoil, but the situation is tough.
:06:23. > :06:25.Coming back to your previous question, as I said at the
:06:26. > :06:39.beginning, I think that there should be some opportunities for us and as
:06:40. > :06:52.long as we reach equilibrium. All right. We appreciate your time.
:06:53. > :06:58.He is executive chairman of the World Steel Forum. It is very
:06:59. > :07:00.interesting to get his thoughts on that story.
:07:01. > :07:02.Don't forget to head to our website to get much more
:07:03. > :07:21.Video streaming company Netflix says customer numbers are up more
:07:22. > :07:25.The firm said it signed up a record 5.6 million customers in the three
:07:26. > :07:27.months to December, bringing total member numbers to just
:07:28. > :07:31.Mining giant, BHP Billiton, has cut its iron ore production
:07:32. > :07:34.forecast for the year to June, reducing its earlier estimate
:07:35. > :07:40.The company says it can't foresee a recovery in iron ore or coal
:07:41. > :07:44.prices in the next few years, but is more hopeful of a bounce back
:07:45. > :08:05.Let's look at the Business Live page. There will be a lot of very
:08:06. > :08:09.interesting insightful interviews and analysis coming from Davos. It
:08:10. > :08:12.talks about the fact that the European markets are falling. There
:08:13. > :08:18.is another story about UK debt as well. An interesting map if you live
:08:19. > :08:22.in the UK, do take a look at this. These are the key debt hotspots in
:08:23. > :08:28.the UK. It is a real problem. A real worry.
:08:29. > :08:32.People suffering from the problem of debt and that spiral of debt that
:08:33. > :08:36.many people find themselves in when they are struggling to pay back what
:08:37. > :08:40.they owe. Details are on the website.
:08:41. > :08:41.It's been a terrible session for Asian markets.
:08:42. > :08:46.Charlotte Glennie is in Singapore with the details.
:08:47. > :08:52.Talk us through what happened. It has been another grim day for
:08:53. > :09:04.markets here in Asia with stocks sliding in response to and the Asian
:09:05. > :09:13.stocks slumped to new four year lows. Japan fell 3.7%. That was
:09:14. > :09:18.meaning that it is particularically in bear market territory. Some of
:09:19. > :09:24.the billingest losers including Sony, whose shares fell 8% and there
:09:25. > :09:33.were big losses for the Soft Bank Group. The Hang Seng had a big loss,
:09:34. > :09:37.3.8% at closing. South coronary's Cost scoop bee had a bad day. A
:09:38. > :09:41.negative picture here in Asia. Tokyo stocks closed 3.7% after US
:09:42. > :09:49.crude prices hit new 12-year lows amid continuing worries
:09:50. > :09:51.about the state Those Chinese growth
:09:52. > :09:56.figures yesterday not Despite still being within
:09:57. > :09:59.the target, they mark The Nikkei extended its decline
:10:00. > :10:03.beyond 20% from its June high, officially putting it
:10:04. > :10:05.in bear territory. In the UK yesterday,
:10:06. > :10:18.the Governor of the Bank of England warned of the uncertainty and urged
:10:19. > :10:20.caution for the year ahead. He also refused to be drawn
:10:21. > :10:24.on a date for a likely rise in interest rates with markets now
:10:25. > :10:26.pushing back their predictions So what is Wall Street
:10:27. > :10:43.watching today? Goldman Sachs reports earnings for
:10:44. > :10:46.the last quarter of 2015. And while the bank would like to concentrate
:10:47. > :10:51.on its bright future, it is its murky past that is a concern for
:10:52. > :10:54.investors. So the strong performance of its business advising and
:10:55. > :10:58.financing corporate take-overs is likely to be overshadowed by its
:10:59. > :11:04.legal difficulties and costs. Just last week, Goldman Sachs announced
:11:05. > :11:07.it would pay over $5 billion to settle claims that it misled
:11:08. > :11:11.investors in mortgage backed securities. The settlement was
:11:12. > :11:14.expected, but it is likely to have a significant impact on Goldman
:11:15. > :11:18.Sachs's profits which are forecast to fall slightly. On Wednesday, the
:11:19. > :11:22.latest inflation data for the US economy is released. Consumer prices
:11:23. > :11:29.are expected to have risen slightly in December.
:11:30. > :11:31.Mike Amey is managing director and portfolio manager at Pimco
:11:32. > :11:41.So what's on your mind this morning, given the sea of red we've shown
:11:42. > :11:47.you? The overnight news, yesterday, we had seen hopes of stabilisation
:11:48. > :11:52.really across the European markets which got, you know, dampened
:11:53. > :11:57.significantly overnight. So I think the issue for us as investors is
:11:58. > :12:02.really whether this, you know, this is a bout of volatility or whether
:12:03. > :12:08.this is the harbinger of something more serious? Our view is this is a
:12:09. > :12:11.bout of volatility rather than a serious downturn in markets and you
:12:12. > :12:16.know one that could bring the economy down as well. In the past
:12:17. > :12:20.we've talked about emerging markets making up for slowdown ins developed
:12:21. > :12:24.economies. It seems we are getting it from both sides. Developed
:12:25. > :12:32.economies are struggling to do much and we heard the governor of the
:12:33. > :12:36.Bank of England saying for people to be aware of uncertainty. Where is
:12:37. > :12:40.the best place to put money? Where are people moving money to? In the
:12:41. > :12:45.developed markets because what you are seeing is that, you know, this
:12:46. > :12:49.has been a multiyear transition, that countries such as the UK and
:12:50. > :12:52.the US are getting better. It is a bumpy ride, but generally things are
:12:53. > :12:57.getting better. Wages are going up for example. In the emerging
:12:58. > :13:02.markets, we're going in the other direction. Japan in a bear market,
:13:03. > :13:06.that's 20% fall from the peak for shares. How significant is that? I
:13:07. > :13:10.know the Japanese yen is so strong because it is a safe haven, that
:13:11. > :13:16.doesn't help? I think that's a reflection of nervousness. Japan,
:13:17. > :13:18.the yen tends to go up when peel are nervous and that's what we are
:13:19. > :13:24.seeing. That's another example of how nervy people are at the moment.
:13:25. > :13:26.Thank you. We shall see you later. Still on edge, everybody.
:13:27. > :13:29.Still to come: You've heard of YouTube, you might have heard
:13:30. > :13:31.of Vimeo, but have you heard of Wistia?
:13:32. > :13:33.It's the third largest website for video sharing and gives
:13:34. > :13:36.businesses an insight into who's watching and why.
:13:37. > :13:39.We'll get the inside track from the founder of Wistia about how
:13:40. > :13:42.2016 could be the year of virtual reality and 360 degree video.
:13:43. > :13:51.You're with Business Live from BBC News.
:13:52. > :13:54.Here in the UK, there's more reaction to those heavy job losses
:13:55. > :14:03.A special taskforce is being set up to help those
:14:04. > :14:05.particularly in South Wales affected by the closures.
:14:06. > :14:07.It comes after more than 1,000 job losses
:14:08. > :14:10.were announced by steel giant Tata, most of them at its plant in Port
:14:11. > :14:14.This morning, Sheffield Forgemasters has also announced plans to cut
:14:15. > :14:16.Hywel Griffiths is our Wales Correspondent.
:14:17. > :14:18.He's at the Welsh National Assembly in Cardiff.
:14:19. > :14:29.What does this task force hope to achieve?
:14:30. > :14:35.Well, in the first place, they have to find them, help them find other
:14:36. > :14:39.employment. That could mean retraining or possibly helping some
:14:40. > :14:45.grants to stay within the steel industry in another part of it, but
:14:46. > :14:49.while people want some job safeguarded, within Tata, they need
:14:50. > :14:53.to look outside of the work, because 750 jobs in Port Talbot supported by
:14:54. > :14:56.1200 jobs across South Wales. It is a problem for the whole region. Now,
:14:57. > :15:00.they will also want to see action, not just here in Wales, but on a
:15:01. > :15:04.global level because everyone knows what built up here is a perfect
:15:05. > :15:09.storm, so cheap Chinese steel, the high energy costs in the UK, the
:15:10. > :15:13.strength of the pound is making it uncompetitive in terms of exports.
:15:14. > :15:15.They will want, noises made here in South Wales, that will be heard over
:15:16. > :15:19.in Mumbai so that there is some kind in Mumbai so that there is some kind
:15:20. > :15:23.of strength in the industry moving forward and some sort of security
:15:24. > :15:30.for those who want to stay in the industry. Hywel, thank you.
:15:31. > :15:37.South Wales so badly affected by the job closures and losses that were
:15:38. > :15:42.announced today. The Financial Times has a picture of Davos but it has a
:15:43. > :15:45.story about the Financial Conduct Authority, mentioning that George
:15:46. > :15:49.Osborne is in Davos on right now but it is the chairman of the FCA who
:15:50. > :15:55.will be grilled by MPs on the Treasury Select Committee today
:15:56. > :15:59.about a review into the culture of Britain's banks that was quietly
:16:00. > :16:04.dropped. Some comment in this article about the fact that
:16:05. > :16:07.actually, the events going on at the FCA around the time of the general
:16:08. > :16:12.election with regards to the pressure put on banks caused a shift
:16:13. > :16:16.and they want to know why. Interesting to watch that later.
:16:17. > :16:20.More interesting because Davos is normally dominated by talks of
:16:21. > :16:22.bankers and now it is about regulators. We will have full
:16:23. > :16:28.coverage on the BBC. You're watching Business Live.
:16:29. > :16:30.Our top story: The world's business leaders
:16:31. > :16:32.are more pessimistic about the global economy -
:16:33. > :16:34.as the annual meeting of the World Economic Forum
:16:35. > :16:47.kicks off in Davos. Full coverage on that is online from
:16:48. > :16:48.our team of correspondence on the ground at the event.
:16:49. > :16:52.Online video has changed lots of things.
:16:53. > :16:58.Not least how we consume TV and movies.
:16:59. > :17:02.But businesses are also using it to tap into new markets
:17:03. > :17:08.By 2017, it's predicted nearly 70% of all internet consumption will be
:17:09. > :17:15.The biggest video site is YouTube, followed by Vimeo, a favourite
:17:16. > :17:19.amongst creative types, and then Wistia.
:17:20. > :17:22.Wistia is geared towards companies because it provides marketing tools
:17:23. > :17:25.and analysis using a so-called heatmap, so you know if the people
:17:26. > :17:29.you're targeting are actually watching your videos.
:17:30. > :17:36.It's also making inroads into the virtual reality and 360
:17:37. > :17:57.degree technology, which is tipped to be the next big thing.
:17:58. > :18:00.He joins us now. Welcome to the programme. While we are chatting,
:18:01. > :18:07.Ben is going to get this going. No pressure, I'm going to get this to
:18:08. > :18:12.work! Firstly, tell us how this started because your company has
:18:13. > :18:16.been around for quite some time. We started almost ten years ago,
:18:17. > :18:21.Brendan and I started it in his bedroom in a ten person House in
:18:22. > :18:26.payment, Massachusetts. Straight out of university? It was the year out
:18:27. > :18:34.of school and university. I want to clarify that to get a sense of your
:18:35. > :18:35.age. And Americanism. You were very young! Thank you! You kick this off,
:18:36. > :18:38.where did the idea come from? We that online video was changing. I
:18:39. > :18:46.was paying close attention to YouTube and I have a background in
:18:47. > :18:50.film and had tried to get my videos online for a long time. The game
:18:51. > :18:53.changing thing about YouTube was that they were encoding for you so
:18:54. > :18:55.you did not have to be technical to make online video work. When we saw
:18:56. > :19:00.that, we knew it video and if there was any time for
:19:01. > :19:05.-- are ever a time for couple of kids who did not know what they were
:19:06. > :19:07.doing to jump into a market where everyone knew what they were doing,
:19:08. > :19:11.this was the place to start. I'm playing with this 360 degrees video,
:19:12. > :19:15.which allows you to watch a video and you can look wherever you want,
:19:16. > :19:20.I can control it and show people around. I'm just looking around an
:19:21. > :19:25.office. These are our offices in Cambridge, Massachusetts. Talk us
:19:26. > :19:32.through the application is something like this. I imagine is state agents
:19:33. > :19:34.would be a great use because you can -- estate agents would be a great
:19:35. > :19:39.use because you can look around houses you want to buy better than
:19:40. > :19:44.in two-dimensional photos. And we have an office dog! 306 D degree
:19:45. > :19:49.video lets you see the space in a totally immersive way and it lets
:19:50. > :19:54.the controller see what they want to see. -- 360. You can look around and
:19:55. > :19:57.see Lenny and try to get a sense of what the desks are like, whatever
:19:58. > :20:02.you think is important you can figure out your cell. It looks
:20:03. > :20:07.pretty empty. You have got people working for you! We do. There you
:20:08. > :20:13.go. This is from about a year ago. The office is pretty full now. Any
:20:14. > :20:18.time there is a tonne of rich, visually complexes stuff, that is
:20:19. > :20:22.when it works well. In terms of the business model, if someone wants to
:20:23. > :20:26.use your services, we pay you a feed and you have got some 200,000
:20:27. > :20:31.customers at the moment. -- we pay you a fee. They all pay, presumably
:20:32. > :20:34.and that is how it works. It is a fairly straightforward business
:20:35. > :20:38.model. Very straightforward, you can get started for free and use the
:20:39. > :20:43.tools to figure out what you want to do, and per month, you get more
:20:44. > :20:47.advanced stuff and it scales to a large audience. You will pay more
:20:48. > :20:51.for a bigger audience but it is all month by month payment. You touched
:20:52. > :20:54.on the 360 degrees video and you have the virtual reality headset
:20:55. > :20:58.with you that lets you do other things as well. It strikes me that
:20:59. > :21:03.it might be technology that in a couple of years, we will go back --
:21:04. > :21:07.look back and it will look very old, the big headsets. How much money is
:21:08. > :21:13.being invested in something which is still untried and untested? Is very
:21:14. > :21:19.early days. This headset is a phone which is pretty amazing. It is $100.
:21:20. > :21:23.A very small percentage of people have this but there's a huge amount
:21:24. > :21:26.of money being invested. No one knows what the final application of
:21:27. > :21:29.360 video will be that allows it to take off but the production has
:21:30. > :21:38.changed dramatically which is amazing for me. We shot that video
:21:39. > :21:41.last year with 40 GoPros, with a rig, and we had to stick it all
:21:42. > :21:45.together manually. Now there's a camera that you can put on the
:21:46. > :21:49.table, and it has two macro lenses with 180 degrees each so you can
:21:50. > :21:53.record extremely quickly. We will see application starting to take off
:21:54. > :21:56.in the next year. We are out of time which is a shame because there is so
:21:57. > :22:00.much to talk about. Thank you for joining us. We have got a real sense
:22:01. > :22:04.of where you are and the dog was lovely! Amongst all the things I
:22:05. > :22:10.never thought I would expect Dooley use say on this programme, "Oh, you
:22:11. > :22:13.have a dog is quiet, is one of them. -- you have a dog".
:22:14. > :22:16.In a moment, we'll take a look through the Business Pages but first
:22:17. > :22:18.here's a quick reminder of how to get in touch with us.
:22:19. > :22:22.The business Life pages where you can stay ahead of the breaking news
:22:23. > :22:25.and keep up-to-date with the latest details, with insight and analysis
:22:26. > :22:31.from the BBC's team of editors, right around the world. We want to
:22:32. > :22:38.hear from you. Get involved on the BBC Business Live web page. On
:22:39. > :22:45.Twitter, we are at BBC Business and we are on Facebook on BBC Business
:22:46. > :22:53.News. On TV and online, whenever you need to know. We asked you earlier
:22:54. > :22:57.about the cost of recycling past it. You will understand why in it
:22:58. > :23:03.because it is in papers. Let's talk about some tweets. "I Think as we
:23:04. > :23:06.keep investing in renewable energy research, we will be at a stage
:23:07. > :23:12.where we can recycle everything". Another says," as researching energy
:23:13. > :23:15.and new technological advances allows us to do much more, prevent
:23:16. > :23:19.environmental disaster". One from Singapore says," there are
:23:20. > :23:28.successful experiment using melted plastic bags on the road", a good
:23:29. > :23:29.example of using things in other applications.
:23:30. > :23:39.Put some meat on the bone, the secret end to plastic recycling. The
:23:40. > :23:43.report is talking about the challenge that we face. This
:23:44. > :23:47.particular reports suggest the amount of plastic in the oceans will
:23:48. > :23:52.be the same as the amount of sea life, basically, by 2050, on current
:23:53. > :23:55.projections so this is clearly a major problem. The challenge is
:23:56. > :24:02.there is not one unifying entity which provides a focal point. Ellen
:24:03. > :24:05.MacArthur, the famous sailor, with her foundation, has volunteered to
:24:06. > :24:09.be the focal point. Hopefully what this can do is bring together the
:24:10. > :24:13.interests of the parties and make some progress. The fact is there is
:24:14. > :24:18.a statistic on this really surprised me, this research is being unveiled
:24:19. > :24:22.in Davos and says after a single use, 95% of all plastic packaging
:24:23. > :24:26.material, an industry worth $120 billion, is lost. We are soon be
:24:27. > :24:30.throwing away $120 billion worth of investment. And that is the
:24:31. > :24:34.Challenge Cup it is not just that we are throwing it away, it is a
:24:35. > :24:37.detrimental use as well. It is not just that we are producing it and
:24:38. > :24:43.not using it, we are producing it and it is killing marine life. This
:24:44. > :24:47.that a foundation, a charity, this that a foundation, a charity, this
:24:48. > :24:51.is the Ellen MacArthur Foundation, is trying to push the World Economic
:24:52. > :24:57.Forum in Davos. There are so many agendas. Why aren't you there? Two
:24:58. > :25:01.reasons, first it is very expensive to get there. It is not cheap to get
:25:02. > :25:08.there or get a ticket to be a part of it. Or display there. Beer,
:25:09. > :25:13.pizza, coffee, hot chocolate is all expensive. And the Sammut is and
:25:14. > :25:18.begets. The pound has been weaker of late so that is not why we are
:25:19. > :25:20.there. To be honest, we are fortunate, we are a large
:25:21. > :25:23.organisation so we are in the fortunate situation that we can
:25:24. > :25:26.speak to the Steve executives and business leaders outside of these
:25:27. > :25:32.forums. We have a one-to-one relationship. We touched on Davos at
:25:33. > :25:36.the top in terms of the theme. If there was one thing you could pick
:25:37. > :25:42.out, what world leaders should be talking about, what would it be? I
:25:43. > :25:46.think the key challenge is the outlook for China, to be honest.
:25:47. > :25:50.Genuinely, what we have got, the Western world does not know what the
:25:51. > :25:54.Chinese are trying to do and some coordination would be great. --
:25:55. > :25:55.generally, what we have got. Thank you for joining us.
:25:56. > :26:00.There will be more business news throughout the day on the BBC Live
:26:01. > :26:02.web page and on World Business Report.
:26:03. > :26:15.Much milder weather at the weekend but until then, more of this kind of
:26:16. > :26:17.thing. Glorious if you can wear plenty of layers in the sunshine, it
:26:18. > :26:19.feels fantastic.