14/03/2016 BBC Business Live


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


Crude politics - will the recovery in oil prices last as key players


try to persuade Iran to join a production freeze?


Live from London, that's our top story on Monday, 14th March.


Russia's energy minister is in Tehran with oil top


But can he persuade Iran to join a freeze on production -


just months after sanctions were lifted.


Also in the programme - China's spending spree continues.


The famous Waldorf Astoria in New York - you'll recognise it


here - has new Chinese owners as the Asia economic powerhouse


This is how Europe looks in the first hour of trade -


we'll have all you need to know for the day ahead.


And there are more than 110 million unexploded mines around the world -


we'll be hearing from company that clears them from conflict areas


And colouring books for adults are seeing a meteoric


rise in popularity - with sales hitting 12


million last year - so are you a fan?


Is the traditional colouring book the antidote to our


Let us know - use the hashtag BBC Biz Live.


We're starting today with oil, as Russia's energy minister begins


talks in Iran over a potential deal to freeze oil production.


Last month a group of countries, led by Russia and Saudi Arabia


agreed to cap their oil output, but only if other producers did


Ill prices fell after that announce: Take a look how oil has risen It has


been rising as you can see, climbing now above $40 a barrel. The


international energy agency says prices have recovered remarkably, in


the past few week, and that lower production in the US is helping to


curb the oversupply. But it's unlikely Iran will agree


to freeze its production Tough sanctions that


all but crippled Iran's oil exports have only just been lifted and it's


keen to get production back online. Its OPEC envoy say a cut


would be illogical - and is reported to have warned


that the country will increase output until it reaches


pre-sanctions levels. Miswin Mahesh, an oil analyst


at Barclays joins us in the studio. So how do you think these talks will


go today? We think that Iran has been clear to the market. They said


we want to reach four million barrels a day, before we agree to


any sort of production freeze, because they know that all the other


members that are convincing them to join have already been producing at


high levels. So it is their turn to make hay while the sun shines as it


were. Yes. They are producing 2.9 million barrels at the moment. How


long will it take them to get to 4,000? They need expertise, they


need investment. So they need 30 billion a year, so get the asets


working again, get that extra million barrel days but they have


done quite well over the last three done quite well over the last three


months even without foreign help in boosting production, the leg, the


final leg will be difficult, just because the way they have shut these


production fields when the sanctions came through was a lot more


difficult than if it was a normal shut down process. In the meantime


Opec and non-OPEC members were going to meet on 20th March. Where are we


headed given that Russia and said were trying to reach an agreement


yeemt? That has been the big disappointment, leading up the rally


has been because of expectation, March 20th we might see not only a


freeze, possibly a cut is what the market thought, and now we are not


even having the meeting because these producers can't agree on a


location, whether it should be in the Middle East or Russia, and our


view is that we will see the next Opec meeting in June and again see


more of the same in December, where people can't agree to cut or freeze.


So what is likely to happen to the price in that case of without we are


just about $40s a barrel, are we going to stay or go up? We think


that prices will be volatile, heading into to peck meeting so we


will see more weakness in the next 30-35 days because refineries have


shut down for maintenance, it is a low period for demand, but going


into the driving season, when gas line is in usage, that is when


demand picks up. We see oil going from 30 to 40, 45 but not above $50


a barrel. I like that, don't you like that? He has nailed his colours


to the mast. Thank you for coming in. We will see whether it comes


We will see whether it comes true, watch this space.


The International Monetary Fund has suggested it supports the decisions


of Japan and Europe to introduce negative interest rates


IMF boss Christine Lagarde says "unconventional monetary policies"


should continue if they are accompanied by structural reforms


Japanese banks have been encouraged to lend out the money to businesses


and household. We have the Federal Reserve and the Bank of England


meeting later. The US ratings agency Moody's has


downgraded Hong Kong's outlook to negative following the tightening


of the territory's political and economic links


with mainland China. It says political risk has risen


in Hong Kong over the implementation of the "one country -


two systems" policy. Plenty of storiesonline. This is an


interesting one. A development in the UK but I am sure it is the case


in other country as well. The number of drivers with tellmatics car


insurance policies has risen by 40%, what is one of those? It is where


you have a black box fitted to your car that monitors your driving. The


idea itself brings down your insurance payments because you have


to stick to the rules of the road and they have a black box to tell


them, so for families where they have teenage children who just pass


their test, saying, teenage boy, girl, it brings down the insurance


policy. What are you suggesting about the driving of teenage boys?


Nothing, I am saving saying it is out there The use of them, it makes


it clear there up from 12,000 thousand fitted back seven years


ago, 500,000 fitted in cars so it makes it cheaper. Quickly, a look at


Asian markets. They are having a good session. It is following on


from how we left things off in the US and Europe on Friday, we will


talk about the European markets in a moment. There you go. Aussie shares


hitting a two month high today. It shows that China's spending power


remain despite the slow down in the domestic economy.


Fill us in. As you mentioned, the Chinese economy is slowing down, but


it looks like the companies still have a lot of cash to spend. So they


have been on an acquisition see from and the latest one is a company


called, an insurer. Most people will never have heard of it but it a big


company, with lots of divisions is everywhere. It is very politically


connected to the highest level of Chinese Government. They are


reportedly paying $6.5 billion for a luxury hotel collection to add to


their already big holdings, including the Waldorf Astoria, and


this is the piggest deal for US prime property for them. They have


also tried to buy other firms as a Portuguese bank. That wasn't able to


go through because it was considered an important bank and there are


objections to that. Overall the Chinese firms have done a lot of


deals this year, it is only March but there has been $84 billion


spent. Compared to last year there was 108 well of Chinese acquisition,


by the time we hit the end of 2016 we will see more deals coming


through. Good stuff. Thank you. More from you later in the week. A quick


look at the number, you can see that is the state of play in Asia.


Interesting we we have news from machine orders in Japan. Not hugely


exciting but it gives an indication of the state of the economy. They


were up 15%. If we can look at Europe as well. We saw them at the


start of the programme. This is what Europe is looking like in the first


hour of trade, in London, Frankfurt and Paris. Markets are back up but


it will be a week dominated by activity from central bank, we will


talk about that in a moment. Michelle has a look at what is


happening on Wall Street today. Americas seen tram bank concludes a


two day policy meeting this Wednesday, and while no action is


expected it will still be significant. Investors want to know


what the fed thinks about the country's employment and inflation


prospects. As things stand there is a gap between what the fed and the


markets think will be the projected number of rate hikes this year. This


Monday's calendar may be light on economic news but the rest of the


week is busy with retail sales and inflation readings lined up. On


Tuesday, the US Senate is planning to hold a hearing on driverless car,


it will feature testimony from Google. General Motor, Lift and


others. That is Michelle of course.


Joining us is David Buik from Panmure Gordon.


Happy new week as it were. Busy week this week, Michelle touching on some


of the issues we heed to watch in the States. We had a rolest coaster


reception to Mario Draghi's situation last week where he


introduced a wider package of assets to be bought. When you think of the


gyration for both European stocks and the FTSE to lend, to end the


week below the plimsoll line is unusual. This week we will have more


stability. Why? When Janet Yelland gets up to speak, I think she will


tell you absolutely no chance of any interest rate change for March, but


if anybody thinks that it is off the agenda for June they maybe run, if


the date is is good, the employment, the number of jobs and the wage


inflation, she may feel she is justified to do so. Going over to


Japan, we will just have play it again Sam. The negative interest


rates and much as I take my halt off to the wonderful lady who sits at


the IMF who is outstanding, I don't believe that quantitative easing in


the long-term is good. The European Union was late with it, and if they


had done it seven years ago maybe. She stresses that it has to come


with structural reform. That is the drum she keeps on beating when it


comes to this. You know and I know it won't. The jury is out. She is


pushing that agenda very hard. I understand that. She is very good


but the rubble is politically these things never work how you think they


will. David, quickly, two big D-Days today when it comes, this week we


should say when it comes to take over and merger, one the Sainsbury's


home retail group bid and Stock Markets. The London stocksening


changes with doish. Tomorrow is the trading statements and the figures


will be less awful than expected. But the real thing is will they have


paid enough for Argos? 1.3 billion is on the take, we know that Stein


Hoff of South Africa have upped the ante, I think the CEO of Sainsbury's


wants this. It is time out on Friday but I think it will be renewed.


Boish? I think they will win it, but there is no such thing as a joint


merger. OK, we will see you sown. He is coming back. Conflict clean up.


We will hear from a firm that helps combat the lethal aftermath of


conflict in Africa and the Middle East. It is a firm that clears more


than 45,000 unexploded bombs and mines over the last ten years. You


are with Business Live from BBC News.


First this is not the sound of music but listen to this line. How can you


solve a problem like youth unemployment? The Government says it


wants to increase the number of on the job training schemes but the


question is whether they are really effective. Steph sat down with


Ofsted's Paul Joyce and asked him about their recent review of the


schemes to mark National Apprenticeship Week.


We saw some shocking practise during the resee, ranging from some


apprentices who went aware they were on apprenticeship programmes, we saw


some that received very little to no training in their job role. Any


particular sectors then that are worse than others? The best practise


is where present us thes are in industries that have a long history


of apprenticeship programmes so areas like construction and


engineering, but, in other sector, like retail and customer services,


they were probably the sectors where experiences were less positive.


Where we have been trying to recruit present tipses in jobs that really


you, I and many members of the public wouldn't recognise as an


apprenticeship. While there are job like coffee making and cleaning,


while very important, you would probably question whether they need


the knowledge, skills and experience to call that an apprenticeship.


Have you seen any changes, since this review? Yes, the colleges and


the private training providers that run apprenticeship programmes are


starting to make some change, and are taking onboard some of the


messages in our report, which is pleasing to see. Who is responsible


for making sure that these apprenticeships are good enough? The


skills funding agency that fund the colleges and the providers, take


take some oversight view of provision. It is very important for


apprentices if they have concerns to raise that with their employers. It


can be daunting though for young person to complain about their


employer, they might lose their job? Sure, that is a really good point.


They should speak and raise concerns with their supervisor, the next


course of action would be to raise any concerns or issues they have


with their provider. This is a qarng from the Chief


Executive of Tesco calling on the Chancellor ahead of the Budget, cut


business rates or jobs will be lost. Russia's energy minister


is in Tehran to try to persuade Iran to join a freeze on production just


months after sanctions were lifted. Long after the guns have fallen


silent and the tanks have stopped moving, war still leaves


behind a deadly legacy. In war-torn countries around


the world, there are more than 110 million


unexploded landmines. They kill and injure


thousands each year. And they deter travellers, restrict


trade and stifle economic growth. The Development initiative was


set-up in 2005. So far, it's removed and destroyed


more than 1400 mines It's managing director


is Hugh Morris who set Hugh Morris joins us


in the studio now. Hugh nice to see you. Welcome to the


programme. Some staggering figures when it comes to how much you have


been able to do to remove these devices. Talk us through how


difficult it is to do that. You are working in some very difficult


conditions in very difficult places and it is a very dangerous job? It


is a drop in the ocean really what we've managed to achieve. There is a


lifetime's work to be done still. Often the biggest challenge is the


remoteness of the areas, the difficult poor lines of


communication. So actually, when you actually get to the minefield, it is


probably one of the easiest tasks is to get cracking with the job, but it


is the back-up, getting the teams on the ground, getting the teams


trained up and into position is the biggest challenge. These countries


that you operate in, Africa, the Middle East, many of them have been


ravaged by war for years and years. So their economies are in a real


state and many watching might think, you know, is it actually the job of


a private company that makes profits to do something like this? Should it


not be an organisation that is set-up by maybe non-governmental


organisation that's not making money in this process, does that make


sense? It does, indeed. We compete regularly against six or seven other


commercial organisations, but there are a number of NGO that is we work


alongside and sometimes compete against. I think there is a place


for both of us. The commercial aspect is aimed to get the job done


quickly as economically as possible and hand the land back to the people


to actually start conducting other business so mine action should


always be seen as a short-term obstacle to development and the


commercial aspect of it is equally important, I think, to the sort of


NGO side of life. How has the environment changed in which you


operate? A lot of the mines that you're dealing with have been there


for a very long time. Technology is changing, the way that warfare is


carried out is changing. Does it mean that you're constantly having


to change how you operate and the way in which you remove these


devices? Absolutely. We are always looking for new technologies and new


techniques to undertake the task quicker and more efficiently.


Obviously the traditional humanitarian mine action is still


very prevalent. There is many, many years, a lifetime of work to be done


out there, but we have had to deal with the threat from IEDs and this


changes the environment because we are now moving into areas that are


not necessarily post-conflict. The main battle might be over, but there


is still groups, factions that are still fighting in the area. So we're


going into countries now where we have to watch our backs, look at


security, and this ups the price and the risk. You also were careful to


call your company the Development Initiative because you want to sort


of get the message out there that you are for development. You employ


a lot of local people, don't you, for example in Sudan where you have


been operating for something like ten years, you have employed people


in Sudan for that ten year period? Absolutely, yes. The focus is on


local capacity building. Often we're the first into an area post-conflict


and nobody has a job after conflict. So sometimes we are the first


employer. So we look to hire as many locals as possible. Obviously the


expertise come from internationals. But a lot of our deminers in Sudan


for example have been with us for eight or nine years. They are highly


experienced. They would be able to travel elsewhere with us to conduct


mine action in other countries. We have got to leave it there. Hugh


Morris, thank you very much for coming in. So many more questions


we'd like to ask, but time has run out yet again.


There has been a lot of fuss in the media when one of Google's


self-driving cars crashed into a bus.


It highlighted just one of the fears people have


Our North America Technology reporter - Dave Lee -


asked the US transport secretary whether he's worried


It is not a surprise that at some point there would be a crash of any


technology that is on the road, but I would challenge one to look at the


number of crashes that occurred on the same day that were the result of


human behaviour. I think the question isn't comparing the


automated car against perfection, it is a relative comparison to what we


have now on the roads which is you and I and our eyeballs and our


brains. Let's look at the stories making the


headlines in the media. Starting with this one in the Financial


Times, Brazilians take to the street in anti-Government protests. The


corruption scandal really hitting the mark there with people's


opinion. In Canada, Ontario is piloting a programme that will give


free money to citizens for well, doing nothing. It is the type of


social safety net called basic income. It is an idea that is


generating attraction. Colouring books for adults. A big business


apparently. 12 million were sold in 2015. I don't mind a bit of doodling


myself! David Buik from Panmure Gordon


is joining us again to discuss. Do you like to doodle? I love


doodling. Em are talking and... Do you like to doodle? Yes. Do you have


an adult colouring book? No. If anyone is watching and would like to


send me one, please do. You could get inundated. I will get one as


well. Up from one million sold in 2014 to 12 million in 2015, and it


strikes me this is just a huge fightback against our ever connected


digital electronic lives, it is paper, it is pencil, it is old tech,


but it is brilliant. I think it is a fabulous innovation, but it will


last five minutes! It is not an innovation, it is a colouring book


for adults! Two in their 30s got them for Christmas, day five,


haven't got to page three yet. There is hi-tech stuff if you look at the


stuff. That's not hi-tech. The designs are. It is something to do


with the design. It is colouring pence and a page!


Let's move on, shall we? When my colouring arrives, I will let you do


one. Brazilians take to the streets in anti-Government protest... Hang


on, I have got a lot to say on this, but I have only got 30 seconds. 3.6


million people were on demonstration against... People. As much as any


high flying Brazilians can be, against Dilma Rousseff's Government.


Her coalition partners are unhappy with some skullduggery with a huge


organisation in Brazil. Their economy is in rags and the point I


wanted to make Sally and Ben was I think Brazil have got more front


than Brighton Pier to consider hosting the World Cup two years ago


and the Olympic Games this year when their country is hanging in rags. I


think it is a political disgrace and however much high-profile it gives


them, you hope it stimulates the young people, this costs billions


and billions of dollars. I have no idea. The bill for both of them is


$50 billion. Over three million people, all making their stand,


asking for change. Absolutely. They feel they have had enough. In a


peaceful manner. When you go on and on. It says something. They are


saying we feel we have got austerity, but these people are


trampled on. David you did it! Sorry! Well done. No need to


apologise. That was Business Live. Thank you for your company today. We


will see you same time, same place tomorrow. Bye-bye.


Hello there. The up and coming week is looking quiet thanks to high


pressure. We saw lots of sunshine


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