14/09/2016 BBC Business Live

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