20/01/2016 BBC Business Live


Similar Content

Browse content similar to 20/01/2016. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News with Ben Thompson and Sally Bundock.


The world's business leaders are more pessimistic


about the global economy as the annual meeting


of the World Economic Forum kicks off in Davos.


Live from London, that's our top story on Wednesday, 20th January.


The slowdown in China, falling commodity prices


and political instability are all fuelling the fall in confidence.


We'll be live in Davos with the latest.


Also in the programme, shares in Netflix surge as the video


streaming firm signs up a record number of customers.


Asian markets had a torrid session and it's left


Asian markets had a torrid session and it's left European markets


looking like this at the open.


And in the growing online video market what will


Will you be watching video in 360 degrees?


Wistia is starting to do it, we'll ask the founder all about it.


A report looks at ways of dealing with plastic waste. Can you


completely eliminate plastic waste and recycle everything? Use the


hashtag, BBC Biz Live. We are starting in that little


Swiss Alpine town of Davos. As the annual meeting


of the biggest names in global Confidence in the global economy


is falling and it's getting worse. New figures from


PriceWaterhouseCoopers show that 27% of chief executives thought global


growth would improve over the next It's all being blamed the slowdown


in China and slump Taking a look at oil,


you can see Brent Crude prices have fallen more


than 70% over the past 18 months A raft of other commodities have


also been affected by the slump. Steel prices fell more


than 35% last year. In the UK earlier this week,


Tata steel announced a further 1,000 jobs would go as the


firm battles high Joining me now from Davos is Russian


business oligarch and billionaire, He's the main shareholder


and the Chief Executive of Thank you very much for being on the


programme. We've mentioned the key issues on the minds of those with


you in Davos this year. From your point of view, what is the most


poignant issue that needs to be tackled?


Well, I think that the world has a lot of changes and a lot of


opportunities and it is very important for us to understand


better how to combine both how to address the challenges, but in order


to regain growth in the global economy and the economies of


specific countries like Russia. Many do agree that the outlook this


year for the global economy is worse than we originally thought. The


start of the year in terms of markets is very bad. The outlook for


rush extra is very bleak indeed. Many are arguing your economy is


going to have a particularly tough time.


Just before I'd like to faem size Russia demonstrated strong


resilience to the head wind in the economy despite more than two times


depression of national currency, we have only 12% or 15% inflation rate.


We have got decline in GDP m Russia, but what is good about Russia is


that I hope that we are reaching new equilibrium and we could expect


growth in the Russian economy again based on the fundamentals of Russia,


it is a large country, a large population, with a lot of smart


people which is very, very important, I think that on the back


of this, we could expect growth. A big cushion, how big the growth will


be so far we have a lot of structural problems as well to


address and we should be providing remember forms in our country. The


Russian economic ministry is in agreement with the IMF saying there


won't be growth in Russia this year. The oil price continues to go down


and that really affects your economy and let's talk about the steel


price, you have been the Chief Executive since 1996. How are you


weathering the fall in the price of steel in Russia?


Definitely have a very serious situation. The global steel industry


has a ratio below 70% which leads to a significant price decline like you


have alluded and we see the same in Russia, but I see a lot of strength


in the Russian steel industry being cost effective and we invested a lot


to improve our quality and product mix. I do believe that the Russian


companies are comparative in the global scale, but decline in our


economy and we saw a decline in steel con tumption and it is a


problem, but I would say the majority of Russian steel companies


are a bit down. They are sustainable and we have high margins. I still


hope that we could sustain this turmoil, but the situation is tough.


Coming back to your previous question, as I said at the


beginning, I think that there should be some opportunities for us and as


long as we reach equilibrium. All right. We appreciate your time.


He is executive chairman of the World Steel Forum. It is very


interesting to get his thoughts on that story.


Don't forget to head to our website to get much more


Video streaming company Netflix says customer numbers are up more


The firm said it signed up a record 5.6 million customers in the three


months to December, bringing total member numbers to just


Mining giant, BHP Billiton, has cut its iron ore production


forecast for the year to June, reducing its earlier estimate


The company says it can't foresee a recovery in iron ore or coal


prices in the next few years, but is more hopeful of a bounce back


Let's look at the Business Live page. There will be a lot of very


interesting insightful interviews and analysis coming from Davos. It


talks about the fact that the European markets are falling. There


is another story about UK debt as well. An interesting map if you live


in the UK, do take a look at this. These are the key debt hotspots in


the UK. It is a real problem. A real worry.


People suffering from the problem of debt and that spiral of debt that


many people find themselves in when they are struggling to pay back what


they owe. Details are on the website.


It's been a terrible session for Asian markets.


Charlotte Glennie is in Singapore with the details.


Talk us through what happened. It has been another grim day for


markets here in Asia with stocks sliding in response to and the Asian


stocks slumped to new four year lows. Japan fell 3.7%. That was


meaning that it is particularically in bear market territory. Some of


the billingest losers including Sony, whose shares fell 8% and there


were big losses for the Soft Bank Group. The Hang Seng had a big loss,


3.8% at closing. South coronary's Cost scoop bee had a bad day. A


negative picture here in Asia. Tokyo stocks closed 3.7% after US


crude prices hit new 12-year lows amid continuing worries


about the state Those Chinese growth


figures yesterday not Despite still being within


the target, they mark The Nikkei extended its decline


beyond 20% from its June high, officially putting it


in bear territory. In the UK yesterday,


the Governor of the Bank of England warned of the uncertainty and urged


caution for the year ahead. He also refused to be drawn


on a date for a likely rise in interest rates with markets now


pushing back their predictions So what is Wall Street


watching today? Goldman Sachs reports earnings for


the last quarter of 2015. And while the bank would like to concentrate


on its bright future, it is its murky past that is a concern for


investors. So the strong performance of its business advising and


financing corporate take-overs is likely to be overshadowed by its


legal difficulties and costs. Just last week, Goldman Sachs announced


it would pay over $5 billion to settle claims that it misled


investors in mortgage backed securities. The settlement was


expected, but it is likely to have a significant impact on Goldman


Sachs's profits which are forecast to fall slightly. On Wednesday, the


latest inflation data for the US economy is released. Consumer prices


are expected to have risen slightly in December.


Mike Amey is managing director and portfolio manager at Pimco


So what's on your mind this morning, given the sea of red we've shown


you? The overnight news, yesterday, we had seen hopes of stabilisation


really across the European markets which got, you know, dampened


significantly overnight. So I think the issue for us as investors is


really whether this, you know, this is a bout of volatility or whether


this is the harbinger of something more serious? Our view is this is a


bout of volatility rather than a serious downturn in markets and you


know one that could bring the economy down as well. In the past


we've talked about emerging markets making up for slowdown ins developed


economies. It seems we are getting it from both sides. Developed


economies are struggling to do much and we heard the governor of the


Bank of England saying for people to be aware of uncertainty. Where is


the best place to put money? Where are people moving money to? In the


developed markets because what you are seeing is that, you know, this


has been a multiyear transition, that countries such as the UK and


the US are getting better. It is a bumpy ride, but generally things are


getting better. Wages are going up for example. In the emerging


markets, we're going in the other direction. Japan in a bear market,


that's 20% fall from the peak for shares. How significant is that? I


know the Japanese yen is so strong because it is a safe haven, that


doesn't help? I think that's a reflection of nervousness. Japan,


the yen tends to go up when peel are nervous and that's what we are


seeing. That's another example of how nervy people are at the moment.


Thank you. We shall see you later. Still on edge, everybody.


Still to come: You've heard of YouTube, you might have heard


of Vimeo, but have you heard of Wistia?


It's the third largest website for video sharing and gives


businesses an insight into who's watching and why.


We'll get the inside track from the founder of Wistia about how


2016 could be the year of virtual reality and 360 degree video.


You're with Business Live from BBC News.


Here in the UK, there's more reaction to those heavy job losses


A special taskforce is being set up to help those


particularly in South Wales affected by the closures.


It comes after more than 1,000 job losses


were announced by steel giant Tata, most of them at its plant in Port


This morning, Sheffield Forgemasters has also announced plans to cut


Hywel Griffiths is our Wales Correspondent.


He's at the Welsh National Assembly in Cardiff.


What does this task force hope to achieve?


Well, in the first place, they have to find them, help them find other


employment. That could mean retraining or possibly helping some


grants to stay within the steel industry in another part of it, but


while people want some job safeguarded, within Tata, they need


to look outside of the work, because 750 jobs in Port Talbot supported by


1200 jobs across South Wales. It is a problem for the whole region. Now,


they will also want to see action, not just here in Wales, but on a


global level because everyone knows what built up here is a perfect


storm, so cheap Chinese steel, the high energy costs in the UK, the


strength of the pound is making it uncompetitive in terms of exports.


They will want, noises made here in South Wales, that will be heard over


in Mumbai so that there is some kind in Mumbai so that there is some kind


of strength in the industry moving forward and some sort of security


for those who want to stay in the industry. Hywel, thank you.


South Wales so badly affected by the job closures and losses that were


announced today. The Financial Times has a picture of Davos but it has a


story about the Financial Conduct Authority, mentioning that George


Osborne is in Davos on right now but it is the chairman of the FCA who


will be grilled by MPs on the Treasury Select Committee today


about a review into the culture of Britain's banks that was quietly


dropped. Some comment in this article about the fact that


actually, the events going on at the FCA around the time of the general


election with regards to the pressure put on banks caused a shift


and they want to know why. Interesting to watch that later.


More interesting because Davos is normally dominated by talks of


bankers and now it is about regulators. We will have full


coverage on the BBC. You're watching Business Live.


Our top story: The world's business leaders


are more pessimistic about the global economy -


as the annual meeting of the World Economic Forum


kicks off in Davos. Full coverage on that is online from


our team of correspondence on the ground at the event.


Online video has changed lots of things.


Not least how we consume TV and movies.


But businesses are also using it to tap into new markets


By 2017, it's predicted nearly 70% of all internet consumption will be


The biggest video site is YouTube, followed by Vimeo, a favourite


amongst creative types, and then Wistia.


Wistia is geared towards companies because it provides marketing tools


and analysis using a so-called heatmap, so you know if the people


you're targeting are actually watching your videos.


It's also making inroads into the virtual reality and 360


degree technology, which is tipped to be the next big thing.


He joins us now. Welcome to the programme. While we are chatting,


Ben is going to get this going. No pressure, I'm going to get this to


work! Firstly, tell us how this started because your company has


been around for quite some time. We started almost ten years ago,


Brendan and I started it in his bedroom in a ten person House in


payment, Massachusetts. Straight out of university? It was the year out


of school and university. I want to clarify that to get a sense of your


age. And Americanism. You were very young! Thank you! You kick this off,


where did the idea come from? We that online video was changing. I


was paying close attention to YouTube and I have a background in


film and had tried to get my videos online for a long time. The game


changing thing about YouTube was that they were encoding for you so


you did not have to be technical to make online video work. When we saw


that, we knew it video and if there was any time for


-- are ever a time for couple of kids who did not know what they were


doing to jump into a market where everyone knew what they were doing,


this was the place to start. I'm playing with this 360 degrees video,


which allows you to watch a video and you can look wherever you want,


I can control it and show people around. I'm just looking around an


office. These are our offices in Cambridge, Massachusetts. Talk us


through the application is something like this. I imagine is state agents


would be a great use because you can -- estate agents would be a great


use because you can look around houses you want to buy better than


in two-dimensional photos. And we have an office dog! 306 D degree


video lets you see the space in a totally immersive way and it lets


the controller see what they want to see. -- 360. You can look around and


see Lenny and try to get a sense of what the desks are like, whatever


you think is important you can figure out your cell. It looks


pretty empty. You have got people working for you! We do. There you


go. This is from about a year ago. The office is pretty full now. Any


time there is a tonne of rich, visually complexes stuff, that is


when it works well. In terms of the business model, if someone wants to


use your services, we pay you a feed and you have got some 200,000


customers at the moment. -- we pay you a fee. They all pay, presumably


and that is how it works. It is a fairly straightforward business


model. Very straightforward, you can get started for free and use the


tools to figure out what you want to do, and per month, you get more


advanced stuff and it scales to a large audience. You will pay more


for a bigger audience but it is all month by month payment. You touched


on the 360 degrees video and you have the virtual reality headset


with you that lets you do other things as well. It strikes me that


it might be technology that in a couple of years, we will go back --


look back and it will look very old, the big headsets. How much money is


being invested in something which is still untried and untested? Is very


early days. This headset is a phone which is pretty amazing. It is $100.


A very small percentage of people have this but there's a huge amount


of money being invested. No one knows what the final application of


360 video will be that allows it to take off but the production has


changed dramatically which is amazing for me. We shot that video


last year with 40 GoPros, with a rig, and we had to stick it all


together manually. Now there's a camera that you can put on the


table, and it has two macro lenses with 180 degrees each so you can


record extremely quickly. We will see application starting to take off


in the next year. We are out of time which is a shame because there is so


much to talk about. Thank you for joining us. We have got a real sense


of where you are and the dog was lovely! Amongst all the things I


never thought I would expect Dooley use say on this programme, "Oh, you


have a dog is quiet, is one of them. -- you have a dog".


In a moment, we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


The business Life pages where you can stay ahead of the breaking news


and keep up-to-date with the latest details, with insight and analysis


from the BBC's team of editors, right around the world. We want to


hear from you. Get involved on the BBC Business Live web page. On


Twitter, we are at BBC Business and we are on Facebook on BBC Business


News. On TV and online, whenever you need to know. We asked you earlier


about the cost of recycling past it. You will understand why in it


because it is in papers. Let's talk about some tweets. "I Think as we


keep investing in renewable energy research, we will be at a stage


where we can recycle everything". Another says," as researching energy


and new technological advances allows us to do much more, prevent


environmental disaster". One from Singapore says," there are


successful experiment using melted plastic bags on the road", a good


example of using things in other applications.


Put some meat on the bone, the secret end to plastic recycling. The


report is talking about the challenge that we face. This


particular reports suggest the amount of plastic in the oceans will


be the same as the amount of sea life, basically, by 2050, on current


projections so this is clearly a major problem. The challenge is


there is not one unifying entity which provides a focal point. Ellen


MacArthur, the famous sailor, with her foundation, has volunteered to


be the focal point. Hopefully what this can do is bring together the


interests of the parties and make some progress. The fact is there is


a statistic on this really surprised me, this research is being unveiled


in Davos and says after a single use, 95% of all plastic packaging


material, an industry worth $120 billion, is lost. We are soon be


throwing away $120 billion worth of investment. And that is the


Challenge Cup it is not just that we are throwing it away, it is a


detrimental use as well. It is not just that we are producing it and


not using it, we are producing it and it is killing marine life. This


that a foundation, a charity, this that a foundation, a charity, this


is the Ellen MacArthur Foundation, is trying to push the World Economic


Forum in Davos. There are so many agendas. Why aren't you there? Two


reasons, first it is very expensive to get there. It is not cheap to get


there or get a ticket to be a part of it. Or display there. Beer,


pizza, coffee, hot chocolate is all expensive. And the Sammut is and


begets. The pound has been weaker of late so that is not why we are


there. To be honest, we are fortunate, we are a large


organisation so we are in the fortunate situation that we can


speak to the Steve executives and business leaders outside of these


forums. We have a one-to-one relationship. We touched on Davos at


the top in terms of the theme. If there was one thing you could pick


out, what world leaders should be talking about, what would it be? I


think the key challenge is the outlook for China, to be honest.


Genuinely, what we have got, the Western world does not know what the


Chinese are trying to do and some coordination would be great. --


generally, what we have got. Thank you for joining us.


There will be more business news throughout the day on the BBC Live


web page and on World Business Report.


Much milder weather at the weekend but until then, more of this kind of


thing. Glorious if you can wear plenty of layers in the sunshine, it


feels fantastic.


Download Subtitles