06/06/2016 BBC Business Live


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


Strapped for cash - one of the world's biggest oil


producers, Saudi Arabia, woos banks ahead of its plan


to issue its first ever international bond.


Live from London, that's our focus today, Monday June the 6th.


With the price of oil hovering at around half


the levels seen last year, Saudi Arabia gets the ball


rolling on its plans to sell government bonds.


Is there an appetite and what does it mean for the region?


Also in the programme: Will trade talks between the world's economic


superpowers China and the US be overshadowed by mounting tensions


And a brand new trading week is under way.


Europe has managed to shrug off the negative tone set in Asia.


We will talk you through what's moving markets and why.


We meet the women who set up their own theatre production


company despite limited funding and tough competition.


And as one Canadian boss says he takes every Friday off as a day


to think we want to know would you ditch the 9-5 to work


Or would that mean you actually never switch off and


Let us know, use the hashtag BBC Biz Live.


Working 9-5 is the stuff of dreams in 24 hour news. Send us your


Saudi officials are meeting with global banks in Riyadh later


today as the oil producer moves forward with plans to issue


The country has been badly hit by low oil prices which generate


more than two-thirds of its revenues.


So to plug the gap the country could sell up to $15-billion worth


of US-denominated debt in the next few months.


It follows a $10-billion government loan agreed


Taking a look at this graph from the beginning of the year


the price of Brent Crude has dramatically improved.


It's now trading at close to $50 a barrel, an increase of almost 70%


Even though oil prices are now at seven-month highs, they're


still a fraction of the prices seen in the middle of 2014.


It's thought Saudi Arabia needs to have the price at about $100


Jane Kinninmont is a senior research fellow and deputy head


of the Middle East and North Africa programme at Chatham House.


Sally said it was a drop in the ocean. This is the starting point


for Saudi Arabia when it comes to doing this. Why does it need to do


this and wide do it now? Saudi Arabia's main source of revenue has


plummeted over the past couple of years and it is not easy for the


country to radically cut spending because most of


it is such spending and public sector salaries for a population


that is accustomed to a high level of spending from the state. They are


cutting back on projects, but it is difficult to cut back on salaries


and public service projects. There is $100 billion deficit this year


and this will plug 15% of that. They are trying


to lay out their stall before Ramadan which begins today, so not


much will get done this month, so off the back of that there will


be an Again it is still a drop in the


ocean, but it also suggests there will be a lot of competition between


these countries, the likes of man and Bahrain are


it be more popular? Cutout and Abu Dhabi are probably the best places


to borrow and a few months ago you had to pay a lot less than in Saudi


Arabia for a bank loan. But Saudi Arabia


has a much larger population and diversify economy. The population is


a double edged sword economically because it costs a lot of money, but


it has more potential to be an ongoing post-oil market


compared to countries that have over a billion citizens.


How attractive is this debt from Saudi Arabia? If you compare it to


elsewhere around the world, is it somewhere people would


want to put their money? All the major ratings agencies have cut


Saudi's ratings, so it is seen as being on a par with Japan which is


one of the world's most heavily indebted countries and Saudi Arabia


the least. But the great uncertainty of risk is the


dependency on oil and investors will be thinking about the dramatic


vision that Saudi has announced to diversify, but they are in early


stages and the implementation is not yet certain.


A lot will depend on the oil market and on the premium Saudi Arabia is


willing to pay. We will be watching that really closely and we will be


speaking again about that. He might run the world's biggest


social networking site, but not even Mark Zuckerberg


is immune to being hacked. The Facebook founder's accounts


on sites including Instagram, Twitter, LinkedIn and Pinterest


appear to have been briefly A hacker group called Ourmine,


which has more than 40,000 Twitter Swiss voters have rejected


a proposal to introduce a guaranteed Final results showed that nearly


77% oppose the plan, The proposal had called


for adults to be paid a monthly income, regardless


of whether they are working or not. The suggested monthly income


would have be at around 2,500 US More than 40% of the UK's oil


and gas firms say they're plan to cut costs in the wake


of the industry downturn. Of the 141 companies surveyed,


51% made redundancies In Scotland - where the North Sea


is a big employer, 57% of companies said they had been severely or badly


affected by the slump in oil prices. Across the UK as a whole,


firms said that for every one job created last year,


six had been lost. We would love to show you the tablet


right now, but it is having a Monday morning feeling.


It is not charged. It is not playing. But lots of stories on the


business life paid, all the stories we do not have time to get across


like German industrial orders and the demand for them is falling.


Trust us, it is there even though we cannot show it to you.


The US Treasury Secretary Jack Lew has called on China to cut excess


capacity in steel and aluminium - warning that overcapacity was having


a "distorting and damaging effect on global markets".


He's also called on the country to be more transparent


in its communications about monetary policy.


It comes as a US-China summit opens in Beijing today to discuss


We have touched on some of the headlines, but there is a lot to


talk about. Indeed, a very busy day for them. They are not allowed to


have the Monday blues that your tablet is having. This is one of the


most significant and high profile bilateral talks between the two


countries, but remember this is the last one under President Obama and


many experts were saying that no one wants to be too aggressive. It will


be rather understated, but the Americans get in with a very topical


subject of the steel industry and China being accused of flooding the


market with cheap products. China is accused of manipulating its currency


to gain competitiveness in exports, which is a topical issue in the US


presidential election. Thank you so much, good to see you. We will keep


across how that discussion goes on between the US Treasury Secretary


and authorities in China. We will keep you right up to date. Japan is


down by 0.4%. In Hong Kong it is the opposite story. The Asian reaction


today to the US non-farm payroll numbers, which were much worse than


expected and spooked investors in terms of their thinking about what


the federal bag will do next. All eyes will be on Janet Yellen and


later today. The pound is really wobbly today, down significantly


versus the dollar and other major currencies. That is on the fear that


perhaps we may vote to leave the European Union. For now investors


are very nervous about that. The mining stocks, the FTSE 100, we are


right across the board hire in Europe. First, let's have a look at


Samira Hussain has the details about what's ahead on Wall Street Today.


Janet Yellen may give investors lose to thinking about the economy. This


will be the last time she speaks publicly head of the next meeting of


the US Federal reserve in June. According to the minutes from the


last meeting, as long as the economy continues to show signs of strength,


June rate hike was on the table, but that was before the latest report in


which the US economy created only which the US economy created only


38,000 jobs for the entire month of May. It was the worst jobs growth in


six years and has led many to believe that the Federal reserve


will not raise interest rates in June.


Joining us is Trevor Greetham, head of multi-asset


at Royal London Asset Management joins us again.


As we touched on, it is all about the Federal reserve today and Janet


Yellen speaks a bit later. It is interesting because everybody is


looking to what she says to give us an indication about rates in the


world's largest economy and it is important. Yes, the jobs rate rise


on Friday was a shocker. It is a notoriously volatile report month to


month and she may decide to take it is one piece of data, but generally


the economy has been recovering and it is time we started raising


interest rates a bit more. They have only raised interest rates once in


most people's investment careers. We are talking about a quarter of a


percent. It is a real mindset shift and that is the issue. Many people


have not seen a rate rise at all and that concept of going up is


important. It is important. People say when they start to raise rates


it will burst bubble, but when they did it in December, the markets


wobbled a bit and they are back where they are now. From Janet


Yellen's point of view, the interest rates are stuck close to zero and


the unemployment rates are very low level and 5% and if they do not


start now, they will have to do it later. June is looking likely in


this report. The meeting in June is on the 15th and the referendum here


is on the 23rd. The pound is very weak today, which is good news if


you are an exporter in the UK, but bad news for other reasons. If you


are an exporter in the UK and we leave the EU, you are in deep


trouble and there is massive uncertainty about what the rules are


and your trading partners will draw support from that, but there is a


lot at stake here. We think the remain vote will win, that is where


the bookies are. A few polls said the opposite. It it is really close


and we are focusing on the positive and we think it will be better for


the overall size of the economy, a bigger market to trade in and we


think that will result in a stronger pound and ultimately higher interest


rates in the UK, but nothing to fear, a better economy. We will


speak again about this. Trevor will be returning. We will be talking


about whether you work 9-5. One Canadian boss takes Friday off as a


day to think. A great idea. Thursday is the new


We meet the composer and the ballet dancer who teamed up


to create their own theatre production company, amid limited


You're with Business Live from BBC News.


Last year a BBC investigation found that working practices


at Sports Direct were so tough, that ambulances were called


to its warehouse and premises 76 times in just two years.


Sports Direct boss Mike Ashley originally said he wouldn t attend


Over the weekend, he agreed to appear before MPs.


Lucy Burton has been following the story.


So Lucy, why the change of heart? Well, Mike Ashley has been


prevaricating for months, hasn't he? On Friday at the end of last week,


it looked like he wasn't going to appear in front of the MPs, he said


his lawyer wasn't available and neither would he be. Over the


weekend there was a change of heart, he wrote to the head of the


committee and said, "I will be available. I've got nothing to hide.


Qrts he feels like he is able to defend some of the allegations that


you mentioned at the beginning of the section, but also, there was a


suggestion that he could have been physically dragged in front of the


committee by the Serjeant at Arms at Parliament. Now, that would have


been on live TV. It would have been pretty embarrassing, it is unlikely


that would have happened, but a legal lengthy battle could have


ensued, he probably decided it is just easier to go in there and


defend my actions. Lucy, the challenge, of course, is determining


what he is accused of doing and whether MPs can get anymore evidence


to back that up. Talk us through the allegations? There is a number of


allegations that were uncovered by the BBC and the Guardian newspaper.


They looked at things like zero-hours contracts. A suggestion


that employees were harassed over the tannoy at workment they are


saying there was a rather Draconian six strikes and you're out system if


you were an agency worker. Those ambulance claims as well. What the


MPs will be trying to find out is whether the investigation that Mike


Ashley has launched into this has worked and how far it has got. Thank


you very much, Lucy for filling us in on that story. As ever, there is


a lot more online about that. It is a story, that we have been following


closely at the BBC with an investigation. You can see Mike


Ashley there. Read more detail. Analysis too from our business


correspondent, Joe Lynam, talking about the U-turn from Mr Ashley over


the weekend. Check it out on the website.


Our top story: Saudi Arabia is moving forward with plans to borrow


money from the international money markets for the first time ever.


The government hopes to raise about $15 billion through the sale


of government debt which it will then invest to help move


the economy away from its over reliance on oil.


Starting a business will always be tough,


but it can be particularly hard in creative industries


where funding is limited and competition is fierce.


Composer Ella Spira and producer Pietra Mello-Pittman set-up


the theatre company, Sisters Grimm, seven years ago


after a background in classical music and at the Royal Ballet


Their biggest production has been the Zulu ballet Inala


which performed to sold out crowds and the music was nominated for


It brought in almost $3 million, but despite the show's success


the pair find getting support for new productions


They are both with us now in the studio. Thank you for coming in to


be with us on Business Live. Ella, you're the composer and you're, you


were, well you still, are you still a ballet dancer? No, I left the


royal ballet last year and I am a full-time producer. So teaming up to


start Sisters Grimm, how did you two meet? How did it begin? We met


because she was looking for someone to write some music. I was cord owe


graphing a piece and didn't like the music I had. I gave to Ella as a


reference score and she composed something ten times better. We


fund-raised and recorded the score at Abbey Road and that was the first


time we collaborated together. You make it sound so easy. One gave


something to someone else and it came out beautifully. There must be


an element you have a specialism in specific areas, how do you make that


gel? We got on particularly well because we actually have matching


skill sets in being very organised, wanting to do things to the highest


standard, not cutting any corners and I think being leaders and


wanting to inspire people to want to work with us and believing in the


projects we want to do together. You both love spread sheets, is that




It is the key to success. Just to explain though when it comes to the


business skill, I mean, you know, we think in our heads composer, ballet


dancer, fantastic, incredible, aristic skills and when it comes to


running a business what about those skills? We never studied business.


It is something that was in us. We're entrepreneurial in our


creative concepts and the way we approached fund-raising. Yeah, it is


something we have always had. What was your biggest learning curve?


What's the biggest surprise of doing business? It is one thing to have


the creative flair and go out and meet people, raise money and get


shows on stage and deal with that? I think managing the fun raising side


of it is probably, in a sense, the biggest challenge because we know,


it is instinctive in us to know what to do with that money and how to


make it go as far as we can make it go. We managed to do a lot with very


small budgets, but it is, knowing how to deal with, you know, in the


time of austerity really, how to put things together in a creative way


because we came out of really that thing of a lot of cuts to the arts


funding. So we had to be creative about how we put our models


together. And also how you deal with each of those things because there


is not a one-size-fits-all. With this over here, this is the process,


with this over here, this is, not everything is totally plaque and


white, a lot of it is feeling things out. You're both very young. You are


both female. Has that held you back do you think or caused hindrances


and also in terms of future funding, it has got to be exhausting having


to sort of constantly push for that funding you need for those


production you desperately want to put on? I think we have felt some


challenges in being two ambitious female leaders. But we're driven and


we keep on pushing through and we don't give up and we have achieved


great things. There is definitely a challenge in looking at how you make


something more sustainable. And it is always looking at OK, how can we


maximise this skill that we have? What can we do with this? What can


we do to build the things we want to do whilst bringing in some other


income streams and how can we put the funding together for different


things. There has been challenges because of being women, but you make


the most of it. On that note, I could talk, we could talk all day.


The time is against us. Thank you. Thank you for coming in.


Flying is one of the safest forms of transport -


But recent accidents have focused our attention on how we can


Among those is the risk of cyber attack.


The computer systems of airliners being hacked and controlled


Our correspondent Theo Leggett caught up with cyber-security


expert, Matthew Finn whether it's a growing threat.


The worst that could happen is that someone could get control


of the aircraft or potentially of the landing lights,


Where we have been focusing attention for the last 40


or 50 years has been about worrying about weapons getting


on board the aircraft, now the thinking is moving


into a space where we think about what could happen


None of this has actually happened yet, so how seriously our defence


Well, there have been some eventuated and possibilities


happening, such as that in Kiev Airport.


Even if it doesn't happen as yet, it is important to take a look


at how cyber security could present a risk to the aviation industry.


That was Matthew Finn speaking to Theo Leggett earlier.


Trevor Greetham, head of multi-asset at Royal London Asset


The Chief Executive that's taken a Friday off. If you have a flexible


schedule, great news because you can do more things, is there a danger


you end up working more? I'm not going to do 9am to 5pm, but 10am to


6pm and you end up working more? There is a danger of that and I can


speak from experience. I don't work Fridays. I have the same arrangement


as the CEO here. On Fridays I'm looking after my three boys aged


three, nine and 11. That's a different full-on day. I'm


responsible for my team and I'm having to check messages and the


four days I am in the office, are flat-out and there is no hanging


around at the water cooler talking about television! You're really


focussed on getting things done and it is a good way of getting things


done and I recommend it. Most Chief Executives we meet. We talk to a lot


of them on this show and a lot of programmes on the BBC are constantly


working. They are across everything. It is quite unusual for one of them


to say right, I'm going to take time out on a Friday. It is interesting


to think how those work for him feel about that? It is interesting, isn't


it? There is a picture of this guy mountain biking. We should mention


who is he is? He is Chief Executive of O 2 EU brands. I get one hour at


gym which is the me time for me on a Friday. It is more about balancing


family life and work life and things happen on Friday in the business


world which you have to be aware of, I think from my point of view, I


could work four days a week more efficiently than five. One we should


take on board. Trevor. We don't work on this programme on a Friday. There


is a reason. Bye-bye.


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