14/09/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock


The boss of the European Commission is setting out his vision


Live from London, that's our top story on Wednesday, 14th September.


Jean Claude Juncker is speaking now in Strasbourg.


He is urging unity and is expected to offer reform to head off


We'll be live in Strasbourg for the latest.


Also in the programme, news that the global oil glut


will last longer than expected has sent prices tumbling again.


It s a roller-coaster ride with oil up a fraction now.


The boss of the International Energy Agency will tell us when he thinks


Shares edging higher, but how long will it last? We'll tell you all you


need to know. Riding the wave of the passion


for fitness. We'll be talking to the boss


of the sporting goods And as the battle hots up to get


tourists into space, today we want to know -


would you pay to take It's a big day for the people


of the world's biggest trading bloc. The head of the European Commission


is setting out his vision Jean-Claude Juncker's state


of the union address comes He'll address the fallout


from Britain's historic vote to leave the Union and we'll


be looking for clues as to the future shape


of the organisation without one He's under pressure to outline


reform in order to head off anti-EU In particular, there are reports


he will loosen rules on national budgets


in order to free up more cash for infrastructure


and education spending. Markets will also look


for reassurance over the state of Europe's banking sector


especially in Italy where bad debts Jean-Claude Juncker is talking in


Strasbourg and he has talked about the fact that there is much need for


unity in the club. Yes, he said there needs to be more united action


when it comes to the entire bloc because the widespread opposition


from both east and west across the EU.


Theo Legg et joins us from our newsroom. We have heard already from


the European Union's head of the executive that we need more united


action, but I wonder whether or not you think that, you know, the EU


really is actually sort of facing a crisis? I think that's a fair


assessment, but people within the higher ranks of the European Union


would deny it. There is no question the referendum vote here in the


United Kingdom has really given the powers at be in Brussels and


Strasbourg, cause for thought. Now what Jean-Claude Juncker has been


saying so far has been attempt to reassure. On the subject of the UK


he says, "We respect and at the same time regret the UK Brexit decision,


but the EU is not at risk. Relations with the UK must remain on a


friendly basis." But he is aware across the European Union it isn't


just in the UK that there is anti-EU feeling, there are parties across


Europe and in many countries there is a feeling they main momentum from


the UK vote. He has been talking about the rise of populism and he


says it is not a solution. European integration must not bow to the


interests of the nation state. For the remainder of the European Union,


after Britain has left, it is about where all in this together. It is


about integration and it is not about each country putting its own


interests above those of everyone else. Theo interesting comments


again when it comes to Brexit saying that the UK will not have an Allah


cart access to the single market when it comes to the EU. Interesting


some of those comments that he said about Canada and the Canadian deal


that the EU have is a very good one when it comes to trade? Yes, the


European Union's agenda here is pretty obvious. If Britain is able


to say, "This is what we want." And get the deal that Britain wants


without any concessions, without any pain if you like, that would simply


pour fuel on the flames of the populist movements on other


countries that want to leave the European Union. So what the EU is


trying to do here, is show whatever deal Britain gets will not, from the


European Union's prospective, be that much of a give away. It is to


discourage the others if you like. OK, Theo, thank you very much for


that summary. He is quick off the ball. He has only started speaking


Jean-Claude Juncker. Samsung has sent out a software


update to limit the batteries of South Korean Note 7 smartphones


to 60% of their capacity Samsung recalled 2.5 million


of the phones last week after reports emerged of the device


exploding during or after charging. It hasn't yet been confirmed


whether or not a similar update will be sent to phones


in other countries. It's being reported that German


pharmaceutical giant Bayer will today confirm that it's agreed


to buy American seed-maker Bayer's farm business produces seeds


as well as compounds to kill weeds, bugs and fungus, but it is better


known for its healthcare products It's being reported that German


pharmaceutical giant Bayer Combining Bayer and Monsanto


would create the world's biggest agricultural supplier


and create a market leader Apple says it has fixed a problem


that was stopping people's devices working while updating


to the latest operating system. Complaints from iPhone and iPad


users updating to iOS 10 flooded social media after the software


was rolled out on Tuesday. Apple says the issue was limited


to a "small number of users" and has Brazil's new government has


announced a multi-billion dollar privatisation plan aimed at reviving


the country's struggling economy. It plans to sell off four airports


and two port terminals as well as offer contracts


to private firms for a wide range of projects including everything


from building new roads Let's check-in quickly with the live


page. I want to update you where the Asian markets have been. Shares


across Asia have mainly traded lower again. They have been weighed down


by a drop in oil prices. We will be talking to Laurence Gosling, our


markets guest, about that later on. You were talking to someone who know


as lot about oil, weren't you? The head of the IEA, but we are talking


about time and watches. It looks like tough times for


Japan's oldest and biggest watch maker. Its shares slid by over 80%


today after it cut its profit outlook drastically. It expects net


economic of three billion yen. It projected a profit of ten billion


yen, that's a drop of 75%. The reason, currency fluctuations. The


yen has been strengthening and that's eat nothing the earnings from


abroad and this is a situation faced by other Japanese exporters as well.


sales. Foreigners aren't buying sales. Foreigners aren't buying


their watches as much. The Japanese brands are known for the low-cost,


but high functionality. For example if you bought a Rolex diver's watch


it is ?8,000, this company makes one for $250. Thank you very much.


That's Japan down 0.7%. So Europe headed higher. Snapping a


four day losing streak in Europe, but the ones that are doing well are


the likes of rand gold. We had a roller-coaster with the oil price.


Down 3% at one point and up slightly as well. It is like people are


looking for direction today. We will talk more about markets in detail


with Laurence in a minute. First of all, let's look ahead to today on


Wall Street. Stocks linked to oil and gas will


face continued scrutiny this Wednesday. The US Department of


Energy EIA releases its weekly report. It is likely to show oil


stocks rose. Oil prices however fell earlier in the week after the


International Energy Agency said it expects lower growth and demand for


oil this year. That added to concerns about oversupply continuing


into next year and it pushed down the price of crude oil. More data


for the Federal Reserve to continue. The import and export prices report


for August is expected to show import prices edged lower. A worry


for the Fed as it considers when to raise rates and that is that prices


continue to be stuck at low levels. Fresh off showing its driverless


cars to the public, Ford must now answer to shareholders at its annual


investor day. One concern, signs that the US market for new cars may


have peaked. Joining us is Lawrence Gosling,


editor-in-chief of Investment Week. Good morning. Let's start with the


oil price. Too much supply and not enough demand. We saw big falls


yesterday and the likes of Opec revising their forecasts, lower for


longer. This very much seems tobt trend, doesn't it throughout the


whole year? We're back in an environment where we were at the


really refuse to go actually reduce really refuse to go actually reduce


its output and then you have got the other emerging oil nations, the


likes of Iran for example, even Libya, who are putting even more


supply into the market and clearly, we know global demand particularly


from China is not as strong as is needed. Interestingly Saudi Arabia


is probably getting the outcome it is looking for. A massive fall in


investment in shale oil in the US over the last year, a 50% fall?


There was data that talked about the US energy Wells that come on tap and


it dropped significantly in the last few months which you would expect.


There is a slow shift in the direction that perhaps the oil


economists would want so they can get more stable price, but again,


we're going to see a lot of the politics of oil going on. Jobless


numbers out in the UK today? Yes, we are expecting what you might call


the post Brexit bounce. The honeymoon period where the economy


is looking strong and unemployment is low. Job creation is good. You


know the UK economy is in a decent space at the moment. The August


numbers were better. I know you're coming back to talk through some of


our stories including space travel? Yes. Don't forget anyone who is


watching that you're supposed to tweet us. Your views. One viewer


says, "Yes, yes, to an extraterrestrial day out. We'll let


Elon Musk know! We're all supposed to be looking


after ourselves more But is the fitness industry riding


a long term trend or just We'll be talking to the boss


of the global fitness goods You're with Business


Live from BBC News. Now a look at some of the stories


from around the UK. The inventor and entrepreneur


Sir James Dyson has told the BBC that leaving the EU will Liberate


the UK economy. He's been talking to our


Economics Editor Kamal Ahmed. They sell 100 billion more goods to


us than we send to them. If they put an import duty on, the import duty


is an insignificant amount compared with currency fluctuations. We get


on very well with Europe. We export to Europe. It is 16% of our global


market. Europe is 15% of general trade throughout the world. So we're


quite nicely balanced. There are exciting markets Europe. The Far


East is expanding at a phenomenal rate so we're happy to be globally


based and not Europe-focussed, but Europe is a good market for us. It


is growing quite fast actually. So I'm not complaining about it. It is


a very nice market for us. We have wonderful employees in Europe, but


it is only 15% of global trade and the last thing they're going to do


is impose an import duty, it is suicidal for them. Do you worry


though that the rest of the European Union, not having access to the


single market, will slow down the UK economy generally and will have an


effect on business people here? We've got access to T they've got


access to our market and we've got access to theirs. 2% to 4% import


duty is negligible issue. Currency fluctuations are greater and other


costs are greater than that. You know, there is a huge market, 85% of


global trade is not in Europe. Let's go after that and it is the fast


expanding areas and our Commonwealth, the British


Commonwealth who speak English and who have affinities with us, we


should be going for those marred debts as well.


So James Dyson sharing his thoughts on Brexit.


We will find out more from Jean-Claude Junker for the rest of


the day. This story is breaking, the no-frills gym, Pure Gym, the UK's


biggest operator. It will list on the London stock market to help fund


its expansion. The president of the European


Commission is setting out his vision for the future


of the EU after Brexit. Jean-Claude Juncker is expected


to offer reform in order to head off He says there is greater room for


cooperation across the union. More online.


A quick look at how markets are faring.


The markets are having a better day, breaking a losing streak. The safe


havens are in focus, energy stocks all over the place am reacting to


the energy report, the price of oil down 3%, but now it is up 0.3%,


roughly. How many of you have been inspired


to take up athletics after watching It's easy to take up exercise


after seeing sporting excellence. But it can be a different story


on dreary winter days, That's a key question


for the fitness industry, making sure it's capitalising


on a genuine trend rather than getting suckered


into investing in a fad. Brooks Sports is one firm


concentrating on that. The company is headquartered


in Seattle and was founded more than 100 years ago, and focuses


almost entirely on producing scientifically-advanced running


shoes. Brooks prides itself


on creating shoes which address the specific needs of runners,


with features like 3D-fit designs The company is currently owned


by billionaire investor His firm, Berkshire Hathaway,


purchased parent company He's the executive vice


president for Brooks Running. You have brought some shoes, thank


you! We have a full range. On one end, the sofa version of running


shoes, very cautioned, all the way through to something for speed. I


wonder how much of this is a bit of a fight. How much did you need this


differentiation? It is about you. It is about your experience, that is


what we focus on, talking to runners, their experience. Before,


it is to be about your footfall, but now it is about biomechanics related


science and experience. It is about the run signature. Every individual


has their own fingerprint and their own preferred motion path. We take


you through the science of the run signature, we talk about the science


of your path, and the experience. Do you want more of a soft feel


relative to your run, or do you prefer more energy return, so you


want to be in the energy category? How do I get more speed? That is


about the runner. The science is there, then we fit you for what your


experience is, which is different from putting you in the science


side. He figured running was big business, you got rid of all of the


other types of sporting gear that you were selling and you have just


focused on running only. Is it paying off? Running is the biggest


category within sport. Within the European marketplace, over 9


billion, so there is plenty of opportunity to expand, and runners


need products to enhance their experience, so it is a growing


business. The participation relative to events as well as people getting


out there to exercise. It is a massive trend, people trying to stay


fit, lead healthier lives. We were talking about Pure Gym listing,


signalling its intention to float. How does your company managed to


stay on top and stay visible? Everybody is doing this, even top


shop has got Beyonce trying to sell athlete leisurewear, stuff you can


wear to the gym or on the street. You can not compete with that? We do


compete. We compete with the runner. We worked really hard with the


stores, we spend time with the stores and invest in the community


is relative to that, educate them about the product. The runner once


products and information to improve, so that is where we invest, and in


the digital and social media. Runners are also interested in other


runners, so a lot of it is word-of-mouth. A big focus for you


is on women, the female runner. That is a growing trend. You are


specialists in sports bras, they are a nightmare, because you virtue


dislocate your shoulders trying to get them off. So this is one of your


specialisms. You going to go into the whole wearable tech world?


Runners tend to have a device on their wrist telling them how far


they have gone, are you going to go down that road? We are investigating


it. We have not made a commitment on one fashion as of yet, but we will


be looking at it. More for us is building the right equipment. The


largest growing trend is women, they need those a great pair of trainers


as well as a great sports bra. Warren Buffett, have you met him? Is


he a runner? He is not a runner, yes, I have met him, he is


incredible, a great ambassador, and he is supporting us all the time, so


we could not be happier to have him as an owner, he is always talking


about us. He is not trying your product!


Not the sports bras! He drink scope! He came up with the idea of the


annual shareholder meeting, to put a run on, so that was his idea. We


have been creating a five K run, and it is growing every year. He fired


the gun the first time. He participates with us. He is a big


fan. I spoke to the head of the


International energy agency about the oil industry.


For me, the very good news is that the share of green-energy


investments is growing, at the cost of fossil fuels.


Today, 30% of all energy investments are coming from renewable energy


and energy-efficiency investment, which is very much in line


with what we wanted to do in Paris, the Paris Agreement.


It gave a boost for those investments.


Last year, we have seen the largest amount of nuclear


investment in the world, mainly by China, but also


As a result of low prices, the investment in the United States,


Canada, Brazil, Africa is going down, and the


production growth is coming from the Middle East.


The production of the Middle East in the global world


The share of Middle East countries is growing, Russia is growing,


at the cost of other countries, such as the United States


and Africa, as a result of low oil prices.


We have talked about rockets, this story in the Times, mine is bigger,


hosts as an's Jeff Bays Oz. Twice the first's thrust at liftoff. A


rather suggestive picture of one of the rockets. It is hilarious! It is


hard to take it seriously. The endgame is to give us the chance for


space travel,... Would you want to go? Absolutely not, I struggle going


up I left! The thought of going in a rocket fills me with doom. We ask


you to tell us whether you would like to go to space. Caleb says, is


the cost would be pocket friendly, I would take a trip. Cost is a big


issue. No, I won't even go on a plane. I go


on planes, I like planes. If I had the money, I would go on


and extraterrestrials day trip. Give it a go. This is all about where to


put your money. Cash under the bed is better than investing in debt.


One of the best fund managers in the city wrote this on his blog


yesterday. The concept of negative interest rates. For a lot of


viewers, they have money in the Bank on deposit, they are earning next to


no return on that, in previous investment cycles they would have


invested in corporate bonds and Government gilts, but now due


getting a negative return, so he has said, we would be better to take the


money out of the bank and put it under the bed rather than investing


in bonds. A biscuit tin is all you need!


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


Tuesday's weather has succeeded in making the headlines in a number of


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