Browse content similar to 06/04/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Thompson | :00:00. | :00:00. | |
Despite plunging oil prices, investment in shale gas | :00:00. | :00:14. | |
Live from London, that's our top story on Wednesday 6th April. | :00:15. | :00:34. | |
The price of crude has slipped back below $40 a barrel as supply | :00:35. | :00:38. | |
So why are investors still piling their cash into shale? | :00:39. | :00:44. | |
A $160 billion deal goes up in smoke. | :00:45. | :00:49. | |
US drugs giant Pfizer scraps its takeover of Botox maker | :00:50. | :00:53. | |
Allergan, as President Obama gets tough on tax inversion. | :00:54. | :00:59. | |
And European markets are higher despite Greece's debt saga | :01:00. | :01:03. | |
The global beauty industry is worth more than $110 billion a year, | :01:04. | :01:13. | |
but how do you make your brand stand out? | :01:14. | :01:17. | |
We sit down with the boss of skincare giant Rodial. | :01:18. | :01:20. | |
It's a hit with celebrities and the rest of us, but is it | :01:21. | :01:23. | |
And as Paypal scraps plans to create 400 jobs in North Carolina | :01:24. | :01:29. | |
after the state recently passed anti-gay laws we want to know, | :01:30. | :01:33. | |
is big business right to get involved in social issues? | :01:34. | :01:37. | |
And is this corporate activism the way to change the law? | :01:38. | :01:42. | |
Oil has been particularly volatile over the past couple of days | :01:43. | :01:58. | |
But despite the uncertain outlook for producers, | :01:59. | :02:03. | |
America's fracking fever continues, because new figures suggest | :02:04. | :02:06. | |
investors still have their faith in the US shale story. | :02:07. | :02:11. | |
According to research from the Carbon Tracker Initiative, | :02:12. | :02:14. | |
investors are piling back into the sector, investing | :02:15. | :02:22. | |
an incredible $8.9 billion in the first quarter of 2016. | :02:23. | :02:25. | |
That's the highest level of investment in the industry | :02:26. | :02:27. | |
on a quarterly basis since 2011, and a tenfold increase | :02:28. | :02:30. | |
It's a surprising figure, considering Carbon Tracker forecasts | :02:31. | :02:35. | |
that fracking companies will suffer 10% lower output this | :02:36. | :02:38. | |
Investors are apparently betting that the price | :02:39. | :02:42. | |
of oil can't go any lower, and that now the only way is up | :02:43. | :02:47. | |
We have been talking about how billions of investment money has | :02:48. | :03:18. | |
been withdrawn or put on hold, we are seeing a lot of investment, is | :03:19. | :03:26. | |
this investors betting that the US shale oil and gas has hit rock | :03:27. | :03:29. | |
bottom? That is the inspiration I would say, because oil was below $30 | :03:30. | :03:35. | |
in January, so the first quarter of this year, that is the lowest. We | :03:36. | :03:44. | |
have had forecast of $10 by some banks, but the perception had been | :03:45. | :03:47. | |
that this is the bottom, and from now on the prices would gradually | :03:48. | :03:53. | |
recover. That is the only explanation I can see. It is all | :03:54. | :03:59. | |
about nothing, they are taking risks, and I doubt if those putting | :04:00. | :04:10. | |
money in two huge analysis, they go by ear, feelings, and they take | :04:11. | :04:16. | |
positions. It is like playing at the casino. If you look at the US | :04:17. | :04:22. | |
fracking picture, it is fragmented, you have big players, little | :04:23. | :04:28. | |
players, they each need a different price to break even. There is a lot | :04:29. | :04:34. | |
of the smaller guys that are suffering. Did you think this is | :04:35. | :04:40. | |
right for consolidation, the guys sucking up the little ones? That has | :04:41. | :04:44. | |
been the expectation for the oil industry in general. But it has not | :04:45. | :04:53. | |
been as much as people expected. The costs vary. The range of different | :04:54. | :05:01. | |
companies, each company has its own break even price. The cost of | :05:02. | :05:11. | |
operations has fallen, there are now less than 500 bricks, there had been | :05:12. | :05:21. | |
2000. The costs have come down, which might make the investors say, | :05:22. | :05:27. | |
they can not be as bad losers, maybe profit makers. It is unusual. We | :05:28. | :05:36. | |
always appreciate your time, thank you for explaining that. | :05:37. | :05:39. | |
Germany's Angela Merkel has warned that it's not legally possible | :05:40. | :05:42. | |
for Greece to reduce its debt burden while remaining in the EU. | :05:43. | :05:46. | |
Talks have resumed this week between Greece and its creditors | :05:47. | :05:49. | |
The IMF has long argued for Greece to be given debt relief. | :05:50. | :05:55. | |
Ford says it plans to build a new $1.6 billion | :05:56. | :05:58. | |
It says the move will create 2,800 jobs, and will focus | :05:59. | :06:04. | |
But Republican presidential candidate Donald Trump has called | :06:05. | :06:10. | |
The instant-messaging service Whatsapp says it will be encrypting | :06:11. | :06:20. | |
So-called end-to-end encryption scrambles messages, | :06:21. | :06:25. | |
making them only readable by the sender and | :06:26. | :06:29. | |
The firm, which has a billion users around the world, | :06:30. | :06:32. | |
says file transfers and voice calls will also be encrypted. | :06:33. | :06:44. | |
I sent a message to a friend last night and I got that message. Have a | :06:45. | :06:51. | |
look at the Business Live website, talking about the Swedish fashion | :06:52. | :06:59. | |
retailer, pre-tax profit for three months down, although sales in March | :07:00. | :07:06. | |
were up by 2%. This is one of my favourite subjects, aviation, and | :07:07. | :07:12. | |
easyJet. This is a tweet from our colleague. Not a bad number of | :07:13. | :07:23. | |
passengers. That percentage is also important, | :07:24. | :07:26. | |
because it is about getting those planes full and being able to charge | :07:27. | :07:28. | |
more for them. The temperature is rising in Mumbai | :07:29. | :07:33. | |
and the heat has been on the UK's Business Secretary Sajid Javid over | :07:34. | :07:38. | |
the last few days. He's been accused of not | :07:39. | :07:40. | |
doing enough to protect He'll arrive in Mumbai today | :07:41. | :07:42. | |
for talks with Tata Steel over In a couple of hours in that | :07:43. | :08:11. | |
building behind me the Tata chairman will meet Sergei Javad. I have | :08:12. | :08:19. | |
spoken to Tata, they are sending out an assurance that the process of | :08:20. | :08:23. | |
sale they will follow for their UK operations will be thorough and | :08:24. | :08:26. | |
transparent. The Business Secretary is hoping to get an agreement that | :08:27. | :08:30. | |
whatever deal they strike for the takeover of those operations, it | :08:31. | :08:36. | |
would result in mass job losses in the UK -- won't. They employ 15,000 | :08:37. | :08:43. | |
workers in its steel operations in Britain. The Business Secretary met | :08:44. | :08:45. | |
with a potential buyer yesterday, the Chief Executive of liberty | :08:46. | :08:51. | |
house, a commodities firm. He has told us he might be interested in | :08:52. | :08:56. | |
purchasing the UK steel operations, and if there was an offer on the | :08:57. | :09:01. | |
table that he made yesterday, that is something which we are expecting | :09:02. | :09:04. | |
to be discussed in this meeting here today. We will be back with you if | :09:05. | :09:15. | |
we hear any more. An important day, not only for Tata in India, but also | :09:16. | :09:18. | |
for those here in the UK. Japan's Nikkei ended lower again | :09:19. | :09:20. | |
today, marking its longest losing It's more than three years | :09:21. | :09:22. | |
since Prime Minister Shinzo Abe launched his three-pronged | :09:23. | :09:26. | |
stimulus-and-reform plan to revive the stagnant economy, | :09:27. | :09:29. | |
but it's had limited impact. Elsewhere, European markets | :09:30. | :09:35. | |
are higher today despite the fact that Greece is dragged back | :09:36. | :09:42. | |
into the headlines by the IMF. We'll hear from Christine Lagarde | :09:43. | :09:47. | |
on those comments over Greece later And later today we'll get the most | :09:48. | :09:50. | |
recent minutes from the US Fed, where there could be some detail | :09:51. | :09:54. | |
on any divisions on the committee. We will keep a close eye on those | :09:55. | :10:03. | |
numbers. US drugs giant Pfizer has decided | :10:04. | :10:08. | |
to kill off its planned $150 billion takeover of rival Allergan | :10:09. | :10:16. | |
after US authorities launched a clampdown | :10:17. | :10:19. | |
on so-called tax inversion. The deal would have moved | :10:20. | :10:25. | |
the biggest drug company in the US to Ireland to lower its taxes, | :10:26. | :10:28. | |
but that deal is now off. It is not confirmed, what we are | :10:29. | :10:50. | |
expecting it to be off. Great to have you with us. It is fascinating. | :10:51. | :11:02. | |
As a lay man, you would go, hang on, perhaps Pfizer were not interested | :11:03. | :11:10. | |
in the product, it wanted lower tax? That was a key part of the deal, | :11:11. | :11:14. | |
they were going to save $1 million a year. The tax rate in Ireland is | :11:15. | :11:23. | |
12.5%, in the US it is 35%. The challenge now, if the deal is off, | :11:24. | :11:30. | |
what they do next, but also it is interesting from the US | :11:31. | :11:32. | |
administration point of view that this is their headline act, that | :11:33. | :11:36. | |
they wanted to stop this happening, to send a message. Yes, and the boss | :11:37. | :11:43. | |
of Tata tried to buy AstraZeneca in 2014, that was predicated on taxing | :11:44. | :11:49. | |
version, partly, that did not work either. The Administration bringing | :11:50. | :11:58. | |
in these antique inversion rules, purely aimed at Pfizer, with | :11:59. | :12:05. | |
language relating to the way this deal was structured. He did not | :12:06. | :12:10. | |
specifically mention Pfizer, but on top of that, multinationals will be | :12:11. | :12:16. | |
looking at it. Multinationals operating in the US are up in arms. | :12:17. | :12:24. | |
It is an expensive end to the deal, they will have to pay a break fee. | :12:25. | :12:30. | |
Bankers were due to earn money on the deal. They will get some of it, | :12:31. | :12:37. | |
but not all of it. It is part of a movement to get tough on tax, we | :12:38. | :12:41. | |
have seen it, who is paying tax where. That continues apace. Yes, | :12:42. | :12:48. | |
Bernie Sanders has mentioned it, as has Donald Trump, in the wake of the | :12:49. | :12:53. | |
Panama papers being released, it is more relevant than ever. We will | :12:54. | :12:58. | |
keep our eye on that, and you will talk through some stories later. | :12:59. | :13:12. | |
The global beauty industry is worth $110 billion a year, | :13:13. | :13:20. | |
but how do you make your brand stand out? | :13:21. | :13:22. | |
If you thought snakes, dragons and super stem cells | :13:23. | :13:24. | |
were the stuff of fantasy, think again. | :13:25. | :13:26. | |
The cosmetic brand Rodial used flashy-sounding names | :13:27. | :13:28. | |
to capture a corner of the market, treating skin conditions. | :13:29. | :13:37. | |
When you arrive at work in a morning, ever spare a thought | :13:38. | :13:39. | |
for the teams of overnight workers who keep our schools, | :13:40. | :13:42. | |
An army of contract cleaners work overnight | :13:43. | :13:45. | |
to look after two thirds of offices and schools in the UK. | :13:46. | :13:48. | |
The cleaning sector is worth ?8 billion to the British economy. | :13:49. | :13:51. | |
Steph is at the British Cleaning Council's trade | :13:52. | :13:53. | |
Good morning, yes, this is one of the companies being exhibited, you | :13:54. | :14:13. | |
have failed their! I am on one of the ride on bits of kit. It is an | :14:14. | :14:19. | |
end street worth to the UK economy. It employs 450,000 people, which | :14:20. | :14:23. | |
will increase by 3% in the next year. It is one that is growing. It | :14:24. | :14:30. | |
is changing a lot. Often, cleaners would be the people you did not | :14:31. | :14:35. | |
really see in the office, because they would be the people working | :14:36. | :14:40. | |
when you are not there, but that is changing. Because of that, the kit | :14:41. | :14:45. | |
is changing as well. A lot smaller kit, although this is not | :14:46. | :14:51. | |
representative! That is so they can actually make sure they can get | :14:52. | :14:55. | |
round the offices. They were telling me something that has had a big | :14:56. | :14:58. | |
impact is the increase in the minimum wage, because this is an | :14:59. | :15:03. | |
industry that pays around the minimum wage. That has made an | :15:04. | :15:08. | |
impact. The company you saw earlier were telling me that they have had | :15:09. | :15:13. | |
to put up prices in order to cover this. Jackie is racing me this | :15:14. | :15:21. | |
morning! A lot of innovation here, it is changing the way the industry | :15:22. | :15:25. | |
is working. If you look at the types of people employed in the sector, | :15:26. | :15:31. | |
one in three in England is a migrant, so the EU referendum could | :15:32. | :15:35. | |
cause uncertainty. And I think I will finish this by racing Jackie, | :15:36. | :15:40. | |
so I will see you later. Big industry, but what is more important | :15:41. | :15:41. | |
is I win this race. Of good stuff. I hope she is not | :15:42. | :15:59. | |
trying to get back to the office. The website, the place to find the | :16:00. | :16:05. | |
latest revelations. The price of crude slips back below | :16:06. | :16:06. | |
$40 a barrel as supply But despite this, investors | :16:07. | :16:16. | |
are still piling their cash into shale, as they bet | :16:17. | :16:24. | |
on a recovery in energy prices. Even though production is expected | :16:25. | :16:36. | |
to be down on last year. Beauty may well be in | :16:37. | :16:40. | |
the eye of the beholder. More people watching, would probably | :16:41. | :16:46. | |
agree! But it's also a billion dollar | :16:47. | :16:48. | |
industry. Skin care is an especially important | :16:49. | :16:50. | |
part of the picture - with latest figures suggesting it's | :16:51. | :16:53. | |
worth more than $110 That there is a lot of money, for | :16:54. | :16:55. | |
cream, stuff for your face! So do you distinguish yourself | :16:56. | :17:10. | |
in such a crowded market place? That's a question for our next | :17:11. | :17:13. | |
guest. Maria Hatzistefanis | :17:14. | :17:16. | |
is the founder of Rodial. The company specialises in helping | :17:17. | :17:19. | |
deal with a range Maria started life as a journalist - | :17:20. | :17:22. | |
but spotted a gap in the market It's grown a lot since then - | :17:23. | :17:32. | |
and now operates in 35 It's said to count celebrities | :17:33. | :17:37. | |
amongst its fans - Unfortunately, we could not get Kim! | :17:38. | :17:40. | |
So we got Fritzy! Victoria Fritz sat down | :17:41. | :17:55. | |
with the founder of the company and asked her whether Rodial's | :17:56. | :17:57. | |
claims that its fancy ingredients fix skin complaints | :17:58. | :17:59. | |
were medically proven. With all our products, | :18:00. | :18:01. | |
we use ingredients that have gone Everything we use, backed | :18:02. | :18:03. | |
up by research. At the same time, we want them | :18:04. | :18:11. | |
to be exciting, fun, we want the customer to get involved | :18:12. | :18:16. | |
with the lifestyle. Your range includes snake serum, | :18:17. | :18:21. | |
dragon blood, stem cell superfoods. I assume you have neither snakes, | :18:22. | :18:27. | |
dragons, in your products! So do you not feel | :18:28. | :18:34. | |
you're misrepresenting? When we started, we were really | :18:35. | :18:38. | |
small, so I needed to come up with names to make | :18:39. | :18:42. | |
the range stand out. One of the first | :18:43. | :18:47. | |
products, snake serum. When I came up with the idea, | :18:48. | :18:52. | |
I thought shall I call it anti-ageing, or use | :18:53. | :18:55. | |
the main ingredient, I thought, how much more exciting | :18:56. | :19:04. | |
to call it snake serum, Of course, people love | :19:05. | :19:12. | |
the name, some hate it. But what we got, a lot of buzz, | :19:13. | :19:18. | |
people talking about the brand. And when you do not have a huge | :19:19. | :19:24. | |
advertising budget, it takes your company | :19:25. | :19:27. | |
to the next level. You first worked as a beauty writer | :19:28. | :19:32. | |
so you've been on both sides. You know how many freebies | :19:33. | :19:36. | |
these magazines get. How unbias is the advice | :19:37. | :19:47. | |
from beauty editors? When it comes to magazines, | :19:48. | :19:51. | |
I think we know most journalists are unbias, | :19:52. | :19:56. | |
at times we would send products, they wouldn't cover it | :19:57. | :19:58. | |
unless they liked it. If they are not an advertiser they | :19:59. | :20:00. | |
do not have an obligation to cover. Win it comes to celebrities, unbias | :20:01. | :20:14. | |
recommendation of the products, but sometimes. Anybody can be a beauty | :20:15. | :20:24. | |
blogger. How concerned are you about controlling the brand online? You | :20:25. | :20:31. | |
cannot control it. What we do as a business, we make sure that whatever | :20:32. | :20:36. | |
content we produce, whatever the message, we take it across | :20:37. | :20:41. | |
platforms, Instagram, YouTube, e-mail databases, making sure that | :20:42. | :20:47. | |
everybody gets the same message. How people take that message, | :20:48. | :20:53. | |
interpreted, that is something that we cannot control. What does the | :20:54. | :20:58. | |
future hold? Do you plan on expanding? I want to develop social | :20:59. | :21:07. | |
media, even further, that could be with the YouTube channel, we also | :21:08. | :21:15. | |
launched a docu-series, behind-the-scenes, a project. And | :21:16. | :21:19. | |
that would enable us to communicate with everyone, grow the brand. And | :21:20. | :21:30. | |
on the other hand, physical stores, grow in the UK with Harvey Nichols, | :21:31. | :21:39. | |
and I want to take this internationally, New York, Hong | :21:40. | :21:42. | |
Kong, and take this spatial, flagship business globally. That was | :21:43. | :21:47. | |
the boss speaking. Her name? Maria Hatzistefanis | :21:48. | :21:54. | |
is the founder of Rodial. Sorry if you're watching for that! | :21:55. | :22:18. | |
Quickly moving on, James is back. Taking a look at the newspapers. | :22:19. | :22:28. | |
Prince Andrew stepping in with Tata. Beijing. He has been critical, China | :22:29. | :22:34. | |
has been said to be part of the problem? Prince Andrew was in China, | :22:35. | :22:41. | |
speaking to the president, we do not know what the response was, but as | :22:42. | :22:47. | |
we were talking about, Russia is another huge issue, in terms of the | :22:48. | :22:52. | |
amount of steel, it is not just China, so presumably Xi give him a | :22:53. | :23:03. | |
robust response. And Lithuania also exports about 95% steel. Is it | :23:04. | :23:08. | |
correct that the royals get involved? We have even been told, | :23:09. | :23:14. | |
they could get involved, with the EU debate, should they be getting | :23:15. | :23:24. | |
involved, using any clout? Prince Andrew, he was involved, with her, | :23:25. | :23:33. | |
-- the trade envoy, he clearly would have been bruised, Dell must -- | :23:34. | :23:42. | |
briefed, it is not going to change policy but it does add some | :23:43. | :23:50. | |
pressure. Clearly, this widens it to an audience. Royals getting | :23:51. | :23:59. | |
involved. Raises the profile. Do you think that he has been raising the | :24:00. | :24:05. | |
profile, more than Business Live? I doubt that. And PayPal. PayPal, not | :24:06. | :24:14. | |
going to tolerate North Carolina discrimination. They have been | :24:15. | :24:22. | |
calling this the bathroom law. It has been targeting the transgender | :24:23. | :24:33. | |
community, using public bathrooms lined with the gender on their birth | :24:34. | :24:38. | |
certificate. Yes, PayPal weren't going to be opening an office, and | :24:39. | :24:42. | |
North Carolina, but do note, business and action, not going to | :24:43. | :24:47. | |
this day because they do not like the stance on the issue. We have | :24:48. | :24:51. | |
been asking people, a people think this was correct. Christina has | :24:52. | :24:57. | |
said, yes, it is the only way to hit the bottom line. Businesses should | :24:58. | :25:01. | |
be free to take decisions, according to ethos. But Jack says it raises | :25:02. | :25:14. | |
questions for Nissan. At Mississippi. It raises the question | :25:15. | :25:18. | |
is, does business have an active role to play, or just an observer? | :25:19. | :25:25. | |
That is correct, and American tech businesses have been on the front | :25:26. | :25:29. | |
foot, then some more traditional companies, when it comes to social | :25:30. | :25:40. | |
activism, money where the mouth is. Funny place, the States! So | :25:41. | :25:48. | |
different, between the coasts. It is difficult to believe it is 2016. | :25:49. | :25:51. | |
Good on you James. | :25:52. | :25:58. |