16/02/2016 BBC Business Live


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This is business life. The European Commission unveils a plan to


guarantee energy supplies. Live from London, that is our top story on


Tuesday, 16 February. As temperatures plunge across


Europe, temperatures rise about the supply of gas. The EU unveils a


long-awaited strategy today. Also: a commercial airshow opens in


Singapore. We will hear the first from the world's fastest-growing


aviation market. The European trading day is under way. Energy


stocks are pushing most market higher, as oil is trading above $35


per barrel. We find out why. And we have the inside track on the foam


that is changing the market for sportswear. We'll hear from the boss


of the company. And we assess how the boom in cocktails is eating into


profits for beer firms. The Nikolaevo or pint of ale? What is


your tipple? What will happen if Russia closes


its pipelines? Guaranteeing gas supply is one of the EU's biggest


challenges. It is importing more than half of all the energy it


consumes. For oil, it imports more than 90%. For gas, more than 66%. It


comes at a huge cost. The total bill is more than 1 billion euros


everyday. Many countries are reliant on a single supplier. For some,


Russia is their only gas supplier. That makes them very vulnerable in


times of stress. Today, the European Commission announces a long-awaited


gas package. Our reporter looks at what is at stake. One of Europe is


my greatest fears, freezing in winter for a lack of gas from


Russia. Almost all is piped through Ukraine. He dangerous choke point.


When Russia has cut off gas to Ukraine in the past, other


countries, in eastern and central Europe, have also been left in the


cold. The EU wants to counter this by opening up the gas market,


stopping Russia's Gazprom locking out competitors in countries where


it is the dominant supplier. The EU says we used to much gas anyway. By


2030, it wants us to burn one quarter less than we do currently.


The EU has to strike the right balance. Energy firms say that if


sales fall too far, they may not bother exploring for a new gas


reserves. And that in turn will put your's gas supply in jeopardy. Those


are the issues at stake. You are a senior research fellow. Nice to see


you. We had some of the issues. Talk us through this strategy by Europe.


It involves four key pillars. Absolutely. We do not know exactly


the details. It will be launched later today. We have seen earlier


drafts and the four pillars are, one, the commission wants to


increase solidarity among member states by unveiling a plan of extra


pipelines and storage capacity and basically forcing member states to


aid each other in the event of a supply disruption. Secondly, there


is a push to improve transparency between so-called intergovernmental


agreements. If a member state signs a contract with a third country,


possibly Russia, then the commission wants to know about that before it


is signed and wants to be able to sign off on it as well. Thirdly,


there is a proposal to boost the import of liquid unnatural gas. And


to promote more efficiencies in the heating and cooling sectors. A lot


in there. Clearly, your District Court make things more and to get


eastern Europe up to speed with western Europe, in terms of how the


current market operates. A lot of eastern Europe in countries are very


exposed at the moment. Many countries in Central and Eastern


Europe are dependent on one single supplier, to a large extent, in this


case, Russia with Gazprom. The commission has unveiled an energy


union strategy last year. This is the follow-up to that. To ensure


that the dependency is reduced and then Europe, as a whole, is more


resilient. We talk about reducing dependency on imports. I suppose the


using less energy, it will always be using less energy, it will always be


dependent on these countries for that. In this proposal, there is a


lot looking at how they can reduce the amount of energy we use in


Europe. Yes. There are two things, one is the discussion of energy


efficiency. Reducing the amount of energy we use in Europe. Secondly,


this is for short-term, it will be very difficult for Europe to reduce


its use of energy from today to tomorrow, so it is looking for


diversified sources of gas. LNG is seen as a very promising


alternative. The commission says that over the next few years, the


trade in LNG will increase by 50%. That is tremendous if Central and


European countries are also able to import significant quantities of


LNG. If they can do that, it will not matter that they get natural gas


from Russia. It is that diverse vacation of sources that is


paramount. Thank you. Other business stories, starting with oil prices.


Oil prices are on the rise again with Brent crude climbing


This time prices are being pushed up by speculation some


of the world's largest producers will finally co-operate.


Saudi Arabia's oil minister is said to be planning a meeting


with his Russian counterpart in Doha today.


Crude prices have fallen 43% over the past year due to oversupply.


EDF Energy is to extend generation from four of its UK nuclear power


The French firm is planning to build a new nuclear power station


Meanwhile, it saw net profit plunge 68% last year,


but despite that EDF said it was committed to its planned


It is still hammering out details of how it will finance that


Anglo-American has seen an increase in share price. Let's look at the


details. Falling commodity prices have hit the company, making a


pre-tax loss of $5.5 billion. Commodity prices continue to fall.


It is a massive loss compared to the previous year. The market is high


because, believe it or not, it is better than most were predicting,


which illustrates how tough things are in the industry. Another story


coming in, this is about Vodafone. Mobile phone giant Vodafone


and cable firm Liberty Global have announced plans to merge


their Dutch businesses. The company said the joint venture


would create a stronger internet The deal is expected to be sealed


by the end of this year, Asia's biggest commercial aerospace


and defence airshow opened It's a chance for the industry's


major players to gather in one of the world's fastest


growing regions. In fact, in South East Asia Boeing


expects to sell almost 4,000 new planes, worth $550 billion


over the next 20 years. All the action getting under way and


some big deal is expected to be announced? Two years ago at the last


airshow, in commercial space where announced. They expect the same or


more. Rising wealth in the Asia-Pacific region has led to


increased travel amount. That affect the aviation industry, especially


the big producers. Behind me, we can see the top planes on display. A


giant Airbus A380. We hope to get some of these big orders from the


countries driving demand. With the fast growth in China, India and


Indonesia. Aviation profits in the Asia-Pacific region are expected to


grow around 9% each year until 2020. As I said, this is being driven by


the rising wealth in the region. Here in Singapore, there is a lot of


defence and military are craft on display. We have drones, fighter


jets, helicopters. We can expect quite a bit more spending in this


area. Geopolitical tensions in the region, specifically to do with the


South China Sea will contribute to this. We also have small planes,


private jets, Mitsubishi, for example, all expected to announce


deals. Thank you. You can follow our correspondence on Twitter. They will


be tweeting when those deals are done. Japan is up 0.2% today.


Holding onto games. Making a little more. The Japanese yen still a


little weak. The Hong Kong stock market is up. Ignore that from


America because yesterday was a public holiday. Let's look at


Europe. The real winners in Asia and Europe to an extent, the FTSE is


being pushed up by Anglo-American. One of the worst performers on the


FTSE 100 last year. They have made gains across the board in Europe.


First of all, let's hear from Michelle Li in New York.


Wall Street returns to work after a long weekend. Investors seem a bit


at odds with Janet Yellen, the head of the US central bank, who last


week indicated she is keeping things... The ability of traders to


support the global economy appears strained. The latest housing data is


expected to show the sector continues to move on the right


direction and US consumer prices will be released at the end of the


week. The season is winding down. One to watch is the giant retailer


Walmart, which last month announced the closure of over 200


underperforming stores. Thank you. She's the Investment Director


at Fidelity International. Nice to see you. Let's talk about


oil. Creeping fears about cuts to production. They have not been able


to agree on this. But it could happen this time? We have heard


rumours of a coordinated plan, finally, as the big players, Russia,


Qatar, Saudi Arabia, meet in Doha today. This is what we needed to see


from the major oil producers. They plan to cut production. The heart of


the collapsing oil price is the issue of oversupply. Markets have


been moving in lockstep. It is interesting to see how sensitive the


markets are. This is purely speculation. They have said they are


going to talk about talking! But there is no indication that any side


is going to come to any agreement. Absolutely. So far, only rumours but


it is hard and impact on the markets. Central bank policy is the


other issue. It is never far from the spotlight. It has had a positive


influence on markets this week. We have heard before that the central


bank is prepared to step in and help markets stay afloat. It tends to


have a short-term effect. In the longer term, people get used to


cheap money and stimulus and then it starts to wear off. It depends how


reliant markets have become on the central bank drag, if you like. The


key thing is the news from the east. From China, over the weekend, and


the data from Japan, which is disappointing, although,


nonetheless, the Japanese market grew because of speculation of


further monetary stimulus to come. Interesting stories to discuss


later. Including, beer, cocktail, wind... With your thoughts on that.


Cocktails are winning hands down at the moment.


Still to come: Just lots of lycra or the key kit to improve


We speak to the boss of high tech sportswear firm, Skins.


Designed with the help of a Nasa astronaut, the clothing is claimed


We'll ask how.You're with Business Live from BBC News.


The French energy giant EDF is to extend the life


of four of its eight nuclear power plants in the UK.


EDF also announced a 68% fall in its 2015 net income Joe Lynam has


The much needed commitment that will be useful for energy security in the


UK, that it will extend the life of the plants? Yeah, absolutely. If


you're in the energy business or you're in the commodities business


you have had a nightmare 18 months and that's reflected in these


numbers, the fall in pre-tax profits at EDF. From a UK prospective,


extending the life of the plants, there are two plants in Lancashire


and one in east Lothian and one on Teesside, by five years and seven


years in the case of the other two, it is good for EDF, because it is a


guaranteed source of money. The regulators are happy that the plants


aren't in danger or a risk and they will close in a number of years


time. There is a plant at Hinkley Point in


Somerset. What's going on with that? This is a ?19 billion investment in


new nuclear, but that is the entire value of EDF's shares, the market


capital identitiesation is around that. You can see the financial risk


that EDF would be doing to proceed with this plant. They have got a


third of the money from a Chinese consortium. And the rest of the


money is going to be guaranteed in future by UK taxpayers, but it is


still a lot of money to invest in one plant and some people suggest


that maybe the French are looking for some excuse to wiggle off this


one, to get out of this contract so they won't be committed to build


what will be the biggest single investment in Europe and in nuclear


energy. OK, thank you, Joe. There is more about that on the Business Live


page. It has big implications for jobs down there. Many, many jobs


would be created if that were to go ahead. If it is delayed, it could


have real issues. UK living standards are returning to


prefinancial crash levels. It says the longer squeeze on households in


living memory has finally come to an end as a result of rising employment


and falling inflation. We have got more money in our pockets because


inflation is so low. Keeping the lights


on and the heating high, the European Commission


unveils its long awaited strategy But will it change Europe's heavy


dependence on Russian oil and gas? That's a key issue and one that will


be debated today. Now, gone are the days of the humble


t-shirt and shorts for any Today it's all about


high-tech sportswear. From clothes that detect your heart


rate to watches that So how about clothes that


improve your performance and help Well, SKINS is a range -


invented by a skier - that uses "compression technology"


that it says boosts oxygen delivery to muscles and can


help you run faster. SKINS was founded in 1996


and currently sells products The firm this week launched


an international $2.9 million The boss is Australian Jaimie


Fuller, a keen corporate activist. He was outspoken about reforms


at corruption-hit Fifa last year and is now pushing for a clean-up


in world of sports. The BBC's Alice Baxter caught up


with him and quizzed him about the firm's scientific


claims and wider goals. Well, it grew out a chaps who was


the original inventor of the product. We rarely ski during the


year it is once or twice a year. You suffer from sore legs. He a


brainwave, how do we take a technology that's synonymous with


old sick and infirm, how do we take that technology and incorporate into


21st century fabrics and make it applicable for super fit athletes.


How did you go from turning the idea into generating this complicated


compression technology? I understand you talked to Nasa on this? Well, it


wasn't with Nasa per se, it was with an Australian astronaut who worked


closely with Nasa because there are a lot of similarities between


needing to enhance circulation in zero gravity environments and we


know the Russians in the 1960s in the high flying jets were wearing


compression stockings back then to promote circulation. Surely for


ordinary people such as myself it comes down to fitness and hard work.


Because it enhances your circulation and delivers more oxygen to your


muscles, it reduces any issues around recovery. So for elite


athletes, it is not a question of running the 100 meters in 10.2 and


pulling these on and you will do it in 10.15, it is a question of


pushing yourself harder and train more which gets you fitter because


you don't need as much recovery if you wear these products. Tell us


about your crowd funding campaign. Why did you choose to go down that


route? Seven years ago, we arparticular laid our brand


principles and values around fuelling the true spirit of


competition and how that applied particularly on the field in the


form of championing sportsmanship and values around sport. 2012, Lance


Armstrong affair blew up. Suddenly our eyes are open to the level of


corruption that's going on. For the last four years, we have been


actively involved in championing and advocating for reform in a number of


sports, not least football, with Fifa. We're going into the third


phase of our journey which is understanding the power that sport


can have in advancing social progress. Understanding also the


sorts of corruption that involved with those at the highest level of


sports governance, we need money to go and do that which not only


improves society, but adds to our brand and will add value to our


brand which will deliver a commercial opportunity. As you


mentioned, you have been involved in lots of campaigns to clean up sport


including the new Fifa Now Campaign, do you think it is your place as a


commercial business to become involved in the governance and the


ethics of sport? I do when a commercial business such as ours is


under pinned by this principle of fuelling the true spirit of


competition. These are the values that we revolve our business around.


Everything we do, from sponsorship strategy to corporate culture, to


how we behave and what we do. And as a commercial player in in the field


of sport, it would be hypocritical of us not to agitate for those


things and at the same time, stand there and say, "These are our


values, this is what we believe in." Yes, I do. Jamie, do you think you


could be accused of hypocrisy, you are a campaigner for cleaning up


sport and yesterday, your product is a performance enhancer? People chuck


that at me all the time. We have been banned in some sports. We have


been banned at times. Really? Which is fine. When... Which sports? For


example, cycling. We are not allowed to wear grading compression when


they cycle and that's fine. We turn that into a positive and we use that


as, if you like, a brand differentor from everybody else. SKINS, the kind


of thing I can envisage you in. Head to toe in Lycra. Well, he cycles to


work sometimes. He doesn't cycle in this outfit. Especially when it is


so cold in the morning. This is a story in Business Insider,


but it is one that's been discussed in a lot of places. It is a question


that's being asked, are we heading into another recession? Is this a


repeat of the financial crisis? I think the concerns we saw in the


banking sector last week is one of the reasons why this question is


being asked. In the bond market, that's the area where we are seeing


similarities and you can understand why the question is being asked. The


financial crisis is burned into the memory of a lot of investors. Is the


world heading into another crisis at a time when it is not fully


recovered from the 2008 crisis? I don't think it is. Personally. I


think the banks are better capitalised, the key question is


what we are seeing in the markets, especially last week is that


reflected in the economic data and that question is inconclusive. A


report out in the United States shows that tastes are changing. The


beer market is shrinking and people are back into cocktails. Wine is a


small part of the market. Yes, what's your preference? I am a wine


girl. Straight in on the wine. For the beer makers they are really


struggling to compete. And it is a health thing apparently. Well, it is


interesting because cocktails have a higher alcohol content. It is a


question of changing tastes. So this generation that we hear a lot about,


they consume more cocktails because they are not loyal to one brand or


one alcohol type. Thank you. It is about the belly feel.


Apparently. Hello everyone. Cold and crisp this


morning and it looks like it will stay nice and sunny across


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