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This is Business Live from BBC News with Ben Thompson and Sally Bundock.
Oil prices fall again as the world's biggest producers once again fail
Live from London, that's our top story on the 18th of April.
There were high hopes that the world's top oil producers
would finally agree to cut production to prop up prices.
But there was no deal and it's sent prices even lower.
We'll find out why - and what it means for us.
The world's major steel producers meet to tackle
the massive oversupply - and how to deal with floods
And commodity prices take a hit after oil
That's putting pressure on the wider market.
We meet the man behind L'Oreal's Tech team who's applying
new ideas to solve age old problems, like this patch that tells
you when you've been in the sun too long!
And the British Government claims that leaving the EU would cost every
UK household over $6,000 a year in lost income.
So we are asking you if a few thousand dollars
would swing your vote in a referendum on how your
Hello and a very warm welcome to the programme.
There was a lot riding on this weekend.
The world's top oil producers were meeting in the Qatari capital,
Doha, to thrash out a deal to stabilise oil prices.
There was no agreement to cap production, saying they
That statement was enough to tip oil prices down another 5%.
At the moment, more than 1.5 million barrels of crude are produced every
That is surplus supply, according to the International Energy Agency,
It says that oversupply will fall to 200,000 barrels per day
But the agency says freezing at current levels would have limited
impact, as both Saudi Arabia and Russia are already pumping
And Iran is unlikely to agree to a freeze,
as it wants to boost production to the level it was at
before international sanctions were imposed.
That's about 4 million barrels a day.
Saudi Arabia - the key player in all of this - had counted
on rock-bottom oil killing off America's shale energy boom.
But America's frackers - although they've been hit -
are proving more resilient that Saudi thought - and investors
are actually putting money back into shale once again.
Harry Tchilinguirian is the Global Head of
Commodity Markets Strategy at BNP Paribas.
He joins me. Good morning. Thank you for coming on. I wasn't surprised to
hear there was no agreement. Your reaction? Equally so. I think we had
a meeting here that was no starter from the beginning. We had two
countries pitted against each other, the Middle East and rival Saudi
Arabia and Iran. Saudi Arabia made it clear they wanted collective
action, everyone including Iran. The position of Iran was there was no
way they would not increase production because they are looking
to reclaim the market share they lost during the sanctions, as
imposed by the EU and US. Where do we go from here? I guess the market
is going to look at the current situation and see producer relations
in disarray. With producers unable to operate we cannot expect much
from the next meeting in June. At that point it will be down to price
adjustments in the market and only the price. I think from now on the
only thing to look at is what is going to happen in the United
States, with shale oil production. That is the only element of the
market that could bring balance back to the market. What price does or
we'll need to be out for the shale producers to be breaking even?
Because they have been running a loss for some time? Yes, the US
shale industry... There are very different types of basins in the US.
I would say in terms of price it would be 40- $50. Right now we are
looking for decline in US production and the real question is, by how
much? If it is sufficient, then the market will get back on its feet. If
it's not, the price will have to stay lower for longer to make the
adjustments can. Where do you think the price will be towards the end of
the year? We are looking between 30- $40, with a view that by the end of
the year, as we have some rebound in the market, we can probably achieve
in the mid-40s by year end. Thank you for your time, Harry. There is
so much more about the Doha meeting, what went wrong and what little went
right. Leaders from the global steel
industry will meet in Brussels later for crisis talks,
as cheap Chinese exports force down prices and threaten
thousands of jobs. A slowdown in domestic demand
in China, as its economy slows, has prompted Chinese producers
to sell steel abroad, The BBC's Alex Forsyth reports
from Brussels. Representatives from around 30
countries from across the world are gathering here in central
Brussels today, to discuss the crisis that's facing
the global steel industry. Overproduction, coupled with falling
consumption has caused Since 2008 dozens of plants
across Europe have closed, and around 70,000 jobs in steel
manufacturing have gone. This problem has been brought
into sharp focus in the UK by the recent decision of Tata Steel
to sell its UK assets, But there is recognition that this
is a global problem which requires which requires a global approach,
and the hope is the officials taking part in this
conference today will be able to agree a series of measures
to curb overproduction, specifically looking at the role
of governments in shoring up steel-making plants
which are producing steel Now it's significant that officials
from China are due to attend today to take place in these talks,
because cheap Chinese steel is largely blamed
for distorting market conditions, so reaching an agreement with China
involved will make this Brazil's lower house of Congress has
voted to start impeachment proceedings against President Dilma
Rousseff. The Brazilian leader is facing
allegations that she manipulated It comes as the country's economy
struggles in the wake Brazil's GDP fell
by 3.8% last year. The first Air France flight
has landed in Tehran, after a gap of seven
and a half years. The airline suspended flights
to Tehran in October 2008, as the UN On board the flight was a delegation
of French business leaders There is plenty of story, website
page today. The steel crisis. As you heard from Alex, a lot at stake with
30 nations represented. Keep across this as the page is updated, they
will update you as and when there is news from there.
I just stopped talking... It was a lottery of stories on the
live pages this morning. Also today you can see the news from Bob
Dudley. Last week we brought you the revolt of shareholders over his
bonus. BP said it misled shareholders over the pay. A 20% pay
rise was afforded to him despite falling sales, a big loss at BP and
those thousands of job losses that were announced for employees. They
say they got it wrong and have apologised.
Thank you. Let's talk about Japan now.
A number of key Japanese manufacturers have been forced
to suspended production after two powerful earthquakes hit
Electronics giant Sony, as well as car makers
Honda and Toyota say their plants have been damaged.
Karishma Vaswani is in Singapore with more on this.
As we said, some well-known names really suffering the fallout of this
devastating earthquake? Yes indeed. Thousands of people are also still
living without power and many of them left homeless. The government
is trying to deploy its resources to be badly affected areas, but as you
pointed out, it is time to gauge the cost to the Japanese economy from
this horrible disaster. A number of Japanese companies have suspended
operations since those two powerful earthquakes struck what was the
southern manufacturing hub of the affected area. It is supposedly less
prone to earthquakes in this area. This city, quite close to the
epicentre, has a large semiconductor industry. It is also home to
manufacturers like we were just talking about, Sony and Honda. They
have both said there has been damaged at their plants. Toyota says
it has suffered as well, and is suspending operations at most its
assembly plants across Japan. This suspension will be staggered but it
will last about week. That is expected to lead to a drop in
production, around 50,000 vehicles. So a real sense that the global
supply chain of these companies may be affected as a result of these two
powerful earthquakes. Thank you very much. As we heard, a human tragedy
and one where the financial impact is filtering across as well. We will
keep your Groser as news developments. But now those oil
prices over those talks in Doha failed to reach agreement. Brent
Crude Down about 5% initially, and still close to that. Light Crude
also down about the same. The next meeting is on June the 2nd but no
big hopes on any change of output. But of course, all that speculation
of a deal had led to some high hopes for banks and mining stocks. That
spill over from rising commodity prices would have helped them, but
as easy, probably going to take a bit of a hit as a result of this.
That's what happened in Asia overnight. I want to take you to
Europe, Europe just opened. No surprises, the arrows are red. More
on that in a moment, but first began head stateside with details about
what is ahead on Wall Street today. US investors will come into work
on Monday with plenty America's biggest companies
are showing investors how much money they made and lost in the first
three months of the year. Morgan Stanley,
the investment bank, is expected to show a sharp fall
in quarterly profit. Many investors have resigned
themselves to the biggest banks suffering their worst
start to the year since the It's a different story in soft
drinks or snacks, or it should be if PepsiCo
meet expectations. It seen its sales in the US
boosted, even though the strong US dollar is hurting
its overseas business. Other companies reporting
include Netflix and IBM, and that's just at the start
of the week. Wall Street is definitely
getting busy. Joining us is Simon Derrick,
Chief Markets Strategist, Nice to see you. Happy Monday. So
dominated despite what's coming later, it's all about oil right now?
It is. What we have to start thinking about is how this impacts
on broader markets. We have seen what has happened to the minors and
stock miners. We also expect to see pressure on a lot of the currencies
of oil producing nations. Interesting there is possibly a
bigger impact, and this comes from what the Federal reserve might do.
The US central bank. They were very cautious about market turmoil at the
start of the year, including weak oil prices. If they see this as
another reason for market disruption, which they may possibly
do, does this mean that they will be even more cautious about hiking
rates this year? In which case we have a very different world and
dollar to the one we experience last year. No huge surprise they didn't
come to a deal in Doha this weekend. Is this a perfect example of
mis-selling the facts? We were expecting they might pull something
out of the bag, markets were a little excited something would
happen and then you look at the numbers today... If you go back to
this time yesterday morning, all the talk was about a deal being struck.
Reports of draft agreements and perhaps there was going to be a
freeze on production. They may have been hopes lifted. I think the way
this has broken a little bit after the start of market trading in Asia
possibly caught a few people unawares. Was it a case of
mis-selling the facts? Were we really that surprised? And markets
just throwing things around? There is never a dull moment. Still to
come, global tech and cosmetics collide.
We meet the man who heads up L'Oreal's Tech team and find out
what new ideas are being used to help out with some
You're with Business Live from BBC News.
Research published by the Treasury this morning says the UK economy
will be 6% smaller by 2030, if Britain leaves the EU.
Chancellor George Osborne will say the country will be ?4,300
But Vote Leave campaigners say Mr Osborne's economic predictions
Our Economics Editor Kamal Ahmed joins us.
Kamal, how significant is this report?
Well, I have just come back from the International Monetary Fund meeting
in Washington actually with the Chancellor and I think what he is
trying to do here is just keep trying to get this fact into the
public's mind that there will be a shocking economic cost if Britain
were to leave the European Union. I think there are lots of issues with
this document. It has been done by treasury economists. It has taken
months to put together and the biggest issue is the fact that this
forecast is for 2030. Can you imagine if a forecast had come out
in 20002 about what the economy would be like today, how strongly if
we went back do the 2002 document, how clear would it be about what the
economy would be like now? This is the period that the document is
looking and it is difficult to predict by 2030 what the economy
will look like. The other issue is they are saying there will be this
contraction to the economy. Let's be clear though, this is not actually
about ?4300 costs to each individual household's income, it is a global
Figg simply divided by the 26.5 million households there are in the
UK, but the big point that George Osborne wants to make and the point
he was making at the IMF in Washington and he will be making in
his speech today, there is an economic cost, it is long-term and
it will, if we leave the European Union, permanently damage the UK. As
you say, those who say that Vote Leave, those who support us leaving
the European Union say that actually we would be more prosperous, if we
left the European Union, and also that forecasts at this far into the
future are not really worth the 200 pages that they are written on.
Thank you, Kamal. More from him online. If you want to
read more detail about the 200 page document. Full details on the live
page. Check it out now. Our top story, major
oil exporting nations, meeting in Qatar, have failed
to secure an agreement They had been hoping to strike
a deal that would limit output to try to boost prices which have
slumped dramatically Let's get the inside track now
on a digital innovation that could quite literally change
the face of an industry. Technology has already taken
the fitness market by storm with all sorts of wearable devices
and lifestyle trackers. Well, now it's the turn
of the beauty sector. L'oreal's latest innovation,
from its Tech lab in San Francisco is a wearable patch that measures
how long you've been in the sun. And the man behind it
all is Guive Balooch, And you have got one on your hand?
Yes, I do. That's wearable tech. I guess once you've got it on, you
don't know it is there, do you? It is interesting because what happened
now with wearables you have been able to take electronics and make
them so thin, you can put them on the body and they feel like a second
skin. How does it tell you what you need to know? You open the
application and you will take a photo of the heart itself and it
will let you know on the app what the level of exposure you have to
the UV at the moment and how long you have been exposed during the day
and it will tell you with a graph, the amounts of time you have had UV
exposure and at what moments you have had the highest levels of
exposure and give you tips and lifestyle tips in terms of living a
better life in the sun. I can't imagine there is much need for that
in the UK! We don't get much sun! Talk us through how you would use
that on a day-to-day basis, do you wear it over the course of your
holiday? The idea is if it is a special few days that you are at the
beach or if you want to go out on a day-to-day and your comments about
the UK, a lot of times you're getting UVA and it is cloudy outside
and you don't know the level of exposure because you feel you're not
gettingks posed. There is the bad type of UVA and the OK type, do you
differentiate? You can get a good amount of vitamin D when it comes to
UV, it is to give you education in terms of how much exposure you are
getting on a day-to-day. The education is very much needed. So
the technology itself is free so we're providing this as really an
empowerment tool to let people educate themselves in terms of the
amount of UV exposure they have and to use the products of an innovative
brand we have around dermatology and UV exposure. We talk about
technology being a new solution to age old problems, but it is
applicable across-the-board, it is about how you can technology. The
thing you've got on your hand there, it is tiny, it is really thin, there
is all the electronics embedded within it. The opportunities for the
way you do things now are, the potential is huge? Yeah, I think
that technology provides really a moment where consumers can become in
the centre of the experience. So in the beauty industry what we want to
do in L'Oreal, we are trying to be in the front when it comes to being
able to use technology as a way to empower consumers to choose better
products and to be able to use the best products for them. So I think
that this is really an area where you will see wearables, virtual
reality and augmented reality and this new tech innovation in the
middle of the consumer experience where they can empower consumers for
can yous tomorrowised choices and for better lifestyle and the
potential is really huge among the markets, I think. Now, I was asking
for another question, but I am not allowed. We are out of time
unfortunately. No problem, thank you for having me. There was so much
more to talk about, it is fascinating. Thank you.
As India overtook China as the world's fastest growing
economy, there's been renewed focus on the government's attempts
to boost investment and that push could be paying off.
The IMF has just confirmed its optimistic outlook for India,
despite much gloomier predictions for the world economy.
Here's Finance minister Arun Jaitley.
I don't think in a globally adverse situation that exists today, double
Countries can reach their target when the
global tail winds are all supportive, but when they are
But even within the present limitation of the world economy
growing slowly, volatility being there
and unpredictability being there
and commodity prices being low, I think if
we have a good monsoon and
if we are able to address several domestic reforms including
strengthening the Indian banking system which is what we are trying
to do, for us to grow over the 7.5% that we have reached is reasonably
We asked you to get in touch with regards to the story in or out of
Europe. Peter says the countries need closer union. Big question
there. Lisa says, "George Osborne sounds like he is threatening the UK
instead of offering balanced and honest information." Keep your
comments coming in. The Wall Street Journal reports that
Verizon's pursuit of Yahoo has received a boost as several
prominent suitors opted not to make Business Insider meanwhile claims
that Britain's house prices are going to soar
because there's too little housing The Telegraph looks at a study
which says that increasing regulatory interference means
competition problems are now considered to be the biggest threat
for global mergers and acquisitions. Joining us again is Simon Derrick,
Chief Markets Strategist, Where do you want to start Simon?
Shall we start with Yahoo? Go on. The lack of suitors for Yahoo, it
was only a week ago, we were talking about The Daily Mail and here we are
struggling to find buyers. It is a measure of the pace of change in
technology, it is only 10 or 15 years ago when Yahoo was the bright
and shining light. Here we are, it is nowhere and struggling to find a
buyer. Interesting time life. I seem to remember they were tied up with
one of the greatest sensations of the dotcom boom which was buying
AOL. Yahoo's results are out later this week and the deadline for bids
for Yahoo was timed before the earnings came out. Watch this space.
Let's talk about housing. This is something that surprises me. The
house price surge in the UK will get worse because builders are running
ot of land. If you get a train between any city in the UK, you see
how much spare land there, yes, some of it is green belt and some of it
is protected, but we are not short of land in the UK? You have got to
remember 60 million people in this country. Compare that to France
which is not a huge amount of difference in terms of population,
twice the land area that we have. Actually relatively speaking
compared to a lot of Continental Europe, we are a crowded nation.
Throw into this the fact that we are going to have interest rates going
nowhere fast in the UK for a long period of time, people are going to
still be looking to property as they always do in the UK as a hard asset.
I think it means further upward pressure on house prices. And upward
in terms of building. We might see more high rise rather than low rise?
That's true in London. That's been the ski story for a while. Simon.
Thank you for being with us today. That's it from us on the team. We
will see you same time, same place tomorrow. Have a great day. Bye-bye.