19/09/2016

Download Subtitles

Transcript

:00:00. > :00:12.Combating climate change: 20 more countries are set

:00:13. > :00:17.Live from London, that's our top story on Monday the 19th

:00:18. > :00:37.Will enough nations sign up to the Paris climate change accord?

:00:38. > :00:42.It's one of the big topics under discussion this week

:00:43. > :00:44.at the United Nations' 71st General Assembly.

:00:45. > :00:47.Also in the programme: The risks of a Chinese banking crisis

:00:48. > :00:49.are mounting according to the banking industry's

:00:50. > :01:04.It estimates that $1.3 trillion in loans are at risk of default.

:01:05. > :01:13.The European markets have started one percentage point higher. A

:01:14. > :01:15.technical snag meant that the afternoon trading session was cut

:01:16. > :01:19.short by about an hour and a half. And this week at the BBC

:01:20. > :01:23.we are asking whether the UK can compete in the global technology

:01:24. > :01:25.industry and why we haven't produced a tech giant yet

:01:26. > :01:28.on the scale of Google or Apple. We'll be joined by technology

:01:29. > :01:30.entrepeneur Rohan Silva So why not get involved

:01:31. > :01:33.in the conversation - do you think the tech talent

:01:34. > :01:36.in Britain has what it takes to create the next Facebook -

:01:37. > :01:38.and if not why not? We start with one of the biggest

:01:39. > :01:52.issues facing businesses and individuals around

:01:53. > :01:54.the world - climate change. It seems as if we're about to see

:01:55. > :01:58.a major change in the way The United Nations says at least 20

:01:59. > :02:01.more countries have indicated they will join the Paris climate

:02:02. > :02:07.change agreement later this week. In the past month the United States,

:02:08. > :02:12.China and Brazil have all ratified their participation

:02:13. > :02:15.in the Paris agreement and promised to cut back

:02:16. > :02:19.on greenhouse gas emissions. So far 27 countries have already

:02:20. > :02:25.joined the climate deal. But this agreement will only come

:02:26. > :02:32.into force when countries representing at least 55% of global

:02:33. > :02:36.emissions have formally joined it. The reason for the threshold

:02:37. > :02:38.is because countries set their own targets

:02:39. > :02:42.for reducing emissions. Yet questions still remain

:02:43. > :02:44.about ending fossil fuel subsidies So far there has been little

:02:45. > :02:51.commitment to phase them out. I'm joined by Ben Caldecott,

:02:52. > :02:54.Director of sustainable finance programme at University

:02:55. > :03:06.of Oxford Smith School. Thank you for being on the

:03:07. > :03:10.programme. It is encouraging that 20 more countries are poised to sign

:03:11. > :03:15.the Paris accord. How much for the do we need to go? It is encouraging,

:03:16. > :03:17.but the key thing is to get this done before the US presidential

:03:18. > :03:21.elections in November. That is what elections in November. That is what

:03:22. > :03:30.is generating impetus for countries to ratify, in case Donald Trump

:03:31. > :03:32.becomes president. That aside, just tell us about the business

:03:33. > :03:39.community. While governments have been signing up, or not as the case

:03:40. > :03:45.may be, businesses have had to get on-board quickly. Tell us which

:03:46. > :03:49.industries are further ahead others. Business is leading the charge when

:03:50. > :03:59.it comes down to clean energy and technology. In Europe, we are seeing

:04:00. > :04:06.80 to 90% investment. Many others are only just starting to look at

:04:07. > :04:09.these issues. I am thinking about international companies, mining

:04:10. > :04:15.companies, companies with a lot of coal-fired power stations in their

:04:16. > :04:19.portfolios. Those companies face very significant challenges. And

:04:20. > :04:28.huge costs if they have two is change their ways, as it were. -- if

:04:29. > :04:32.they have to change their ways. Paris is providing an international

:04:33. > :04:37.accord on this, isn't it? Yes it provides an international framework

:04:38. > :04:40.that will ratchet up the targets and that will ratchet up the targets and

:04:41. > :04:44.help provide that signalled the business. It is not just about an

:04:45. > :04:49.international agreement. A lot of the motivation for regulatory change

:04:50. > :04:55.is not to do with climate change but to do with air pollution of water

:04:56. > :05:00.pollution. Even if climate change once an issue, policies would likely

:05:01. > :05:04.come into force that would force them to change their business

:05:05. > :05:09.practices. You mentioned the November deadline of the US election

:05:10. > :05:14.- are you confident we might hit the target before then the number of

:05:15. > :05:21.countries signing up? I am. The easiest way of getting to the number

:05:22. > :05:24.of 55 countries and 55% of emissions is if European member states agreed

:05:25. > :05:31.to ratify. That would be the quickest way of achieving it. The

:05:32. > :05:36.signals seem positive. We appreciate your time. Thank you for joining us.

:05:37. > :05:39.Cancel your charter agreement and return your ship to the ship owner.

:05:40. > :05:42.That's what a judge in Seoul has ordered of all Hanjin

:05:43. > :05:43.Shipping vessels that have unloaded their cargo.

:05:44. > :05:45.Delays are already costing more than 2 million

:05:46. > :06:00.Samsung has offloaded its stake in four technology companies -

:06:01. > :06:02.including Japan's Sharp - in order to free up money to focus

:06:03. > :06:07.The South Korean tech giant is mired in a major recall of Galaxy Note 7s

:06:08. > :06:11.It's being reported the value of the stakes sold totals around

:06:12. > :06:15.Global private equity groups are joining forces with car parts

:06:16. > :06:17.makers to invest in the scandal-hit airbag maker Takata,

:06:18. > :06:20.as the industry tries to help the Japanese group bear $9.8 billion

:06:21. > :06:27.Takata, one of the world's largest maker of vehicle airbags,

:06:28. > :06:30.was forced into a massive recall after its airbags were linked

:06:31. > :06:35.to at least 14 deaths and more than 100 injuries worldwide.

:06:36. > :06:45.More than 100 million vehicles may be affected.

:06:46. > :07:03.There are a lot more stories on the Business Live page. The port of

:07:04. > :07:09.Melbourne was sold. An investment firm from Australia bought it. We

:07:10. > :07:15.immediately thought a Chinese company, but that is not the case.

:07:16. > :07:23.China is a big investor in end to structure. -- in infrastructure.

:07:24. > :07:26.British business confidence has fallen to a four-year low

:07:27. > :07:31.Its survey says confidence has been dented by economic uncertainty

:07:32. > :07:33.and a slowdown in demand following the EU referendum.

:07:34. > :07:35.The services sector was the worst affected.

:07:36. > :07:37.More than a quarter of all companies surveyed said that uncertainty

:07:38. > :07:40.was the main threat to growth over the next six months.

:07:41. > :07:42.Could China be facing a full blown banking crisis?

:07:43. > :07:44.According to the Bank of International Settlements,

:07:45. > :07:46.the central bank for central bankers, if you will,

:07:47. > :07:50.Mariko Oi in Singapore has been following this story for us.

:07:51. > :07:53.The health of China's banking sector has been a cause of concern, but

:07:54. > :07:56.according to this latest daddy, vulnerability in China is three

:07:57. > :08:02.times the danger threshold. It means that credit growth is excessive and

:08:03. > :08:10.a potential financial bust is looming. It was also warned that

:08:11. > :08:17.loans worth over $1 trillion are at risk of default. Most banks are

:08:18. > :08:20.state-owned and state-controlled, and the Government says that they

:08:21. > :08:27.will be able to withstand any shocks, but this report comes as a

:08:28. > :08:30.stark warning. Let's have a quick look at the markets.

:08:31. > :08:32.Asian shares advancing as markets bet the US

:08:33. > :08:35.Federal Reserve will skip a chance to raise rates this week.

:08:36. > :08:46.Oil has bounced on talk of a deal on output and reports of fighting

:08:47. > :08:51.around Libyan oil ports which would constrict supply.

:08:52. > :08:59.This is how the European session has opened.

:09:00. > :09:06.As expected, we have seen a little bit of a balance today. Some

:09:07. > :09:10.volatility in equities, as people get back to their trading desks.

:09:11. > :09:14.Samira Hussain has the details about what's ahead on Wall Street Today.

:09:15. > :09:26.The big economic event this week is the Federal Reserve's meeting on

:09:27. > :09:30.not expecting a rise to, this not expecting a rise to, this

:09:31. > :09:36.meeting, but many are expecting debate among members of the Federal

:09:37. > :09:41.Reserve committee with regard to the timing of the next rate increase. We

:09:42. > :09:48.will hear about the health of the US housing market. On Tuesday, housing

:09:49. > :09:54.numbers are expected to show that starts slowed in August. On

:09:55. > :09:56.Thursday, data from the National Association of Realtors is expected

:09:57. > :10:00.to show that existing home sales went up for the month of August,

:10:01. > :10:12.painting a mixed picture of America's housing market. You see,

:10:13. > :10:22.already, the stage is set for the week. We are joint by Tom from

:10:23. > :10:32.Fidelity International. It is about the Japanese central bank. We will

:10:33. > :10:35.have announcements from the bank of Japan and the US Federal Reserve on

:10:36. > :10:38.Wednesday. The bank of Japan will be more interesting in some ways

:10:39. > :10:43.because they have promised a review of the effectiveness of quantitative

:10:44. > :10:47.easing. It is a big question and many people say it is good at

:10:48. > :11:01.pumping up asset prices but less good at stimulating the economy. The

:11:02. > :11:06.Japanese are common in me is pretty -- the Japanese economy is pretty

:11:07. > :11:10.moribund. Measures designed to stimulate the economy through tax

:11:11. > :11:14.easing and monetary stimulus and changes to the competitiveness of

:11:15. > :11:21.the Japanese economy are having struggle -- are having a struggle to

:11:22. > :11:27.get any traction. As time goes on, people are raising questions around

:11:28. > :11:33.the efficacy of monetary policy and banks are putting more emphasis on

:11:34. > :11:36.governments... They have probably been doing it more than most other

:11:37. > :11:41.countries, but there is a groundswell of opinion that the

:11:42. > :11:46.burden needs to be balanced more equally between central banks,

:11:47. > :11:53.monetary policy, and governments and fiscal policy. The austerity

:11:54. > :12:00.programme is being questioned in the UK, and the same thing in Europe.

:12:01. > :12:04.That is why there is a big focus on the Autumn Statement. We have a

:12:05. > :12:07.relatively new Chancellor of the Exchequer in the UK, and people are

:12:08. > :12:13.wondering what he will do along with Mark Carney, the governor of the

:12:14. > :12:20.Bank of England. Exactly right. It is clear that with only 0.25% to go

:12:21. > :12:27.until we get to see rope interest-rate in the UK, Mark Carney

:12:28. > :12:36.has been calling for the Chancellor to do his bit. One more question,

:12:37. > :12:38.one might think that the bank of International settlement turning

:12:39. > :12:41.round and saying we might have a full-blown crisis in China might put

:12:42. > :12:50.a wobble in the markets, but not so much as a ripple. Why not? This is a

:12:51. > :12:55.common theme. It is true that the Chinese economy is heavily indebted.

:12:56. > :13:01.It is something like 250% of GDP, a very high figure for a developing

:13:02. > :13:03.country. The banks are all owned by the Government, effectively, so

:13:04. > :13:10.there is no risk that the banks. Lending if the Government wants them

:13:11. > :13:14.to keep doing so. The Government is in a financial stake that is

:13:15. > :13:23.different from Italian, for -- Italy, for example. The Chinese can

:13:24. > :13:28.keep stimulating, but they are trying to transition the economy

:13:29. > :13:32.more towards a consumption driven economy and away from investment and

:13:33. > :13:38.exports. Every time there is a slowdown, they revert to type and

:13:39. > :13:40.they just stimulate again. Thank you, Tom. We will see you in about

:13:41. > :13:46.five minutes. Still to come - If I asked

:13:47. > :13:50.you to think of a global technology company, the odds are the name you'd

:13:51. > :13:53.come up with would be American. We're starting a special

:13:54. > :13:57.look at tech talent. You're with Business

:13:58. > :14:00.Live from BBC News. Innovation, improved customer

:14:01. > :14:02.service, new offers that would bundle different

:14:03. > :14:07.household services together. Those are some of the potential

:14:08. > :14:10.benefits that the regulator Ofwat says could be in the pipeline

:14:11. > :14:13.if there was more competition Rob Young is in our

:14:14. > :14:16.Business Newsroom. Rob, at present, people have no

:14:17. > :14:31.choice over who supplies them water, It could be. At the moment, you get

:14:32. > :14:36.water from the regional monopoly in your area, but that the Government's

:14:37. > :14:40.request, Ofwat has been looking at the pros and cons of opening up the

:14:41. > :14:44.water market in the way that the market for gas and electricity was

:14:45. > :14:48.opened at 20 odd years ago. The regulatory saying it could lead to

:14:49. > :14:57.innovation in customer service, and also perhaps to lower bills as well.

:14:58. > :15:01.That's -- perhaps not huge, the saving, around ?8 per year. A lot of

:15:02. > :15:06.people would not find it worth the bother of switching. This is not

:15:07. > :15:10.definitely going to go ahead, because the final decision will rest

:15:11. > :15:15.with the Government. This was something that the regulator has

:15:16. > :15:20.been tasked with looking at by the previous Chancellor, George Osborne.

:15:21. > :15:23.Several of his ideas seem to have run into the long grass, so it may

:15:24. > :15:27.well be that the current Government decides it doesn't want to go ahead

:15:28. > :15:32.with this. The water industry this morning have said that this is a

:15:33. > :15:37.serious undertaking and they say it deserves what they say is very

:15:38. > :15:41.careful consideration before it is embarked upon, because competition

:15:42. > :15:46.could, of course, drive down bills and improve innovation, but the

:15:47. > :15:54.regulator is also warning that in any competitive market, there are

:15:55. > :15:56.losers as well as winners. I had a question, but I've been told I'm not

:15:57. > :16:10.allowed. Thank you for your input. We are so bad at switching,

:16:11. > :16:18.apparently. Also if you are only going to get ?8 back a year on your

:16:19. > :16:20.bills, do people think it is worth it?

:16:21. > :16:25.When I get my water bill going up every year, and I think there is

:16:26. > :16:31.nothing I can do about this. Microsoft is too close Skype London

:16:32. > :16:43.office. We will look at that in more detail in a short while.

:16:44. > :16:45.You're watching Business Live, our top story...

:16:46. > :16:48.Combating climate change - 20 more countries are set

:16:49. > :16:53.It seems as if we're about to see a major change in the way

:16:54. > :16:55.A quick look at how markets are faring.

:16:56. > :17:04.Japan are closed for a public holiday but London are up over 1%.

:17:05. > :17:06.The price of oil bouncing over 1% higher today after hitting a

:17:07. > :17:11.one-month low on Friday. What does it take to transform a

:17:12. > :17:14.city into a thriving technology hub? That's a question that many cities

:17:15. > :17:17.around the world are grappling with. Rohan Silva spent three years

:17:18. > :17:19.as a senior policy advisor to Britain's former prime minister,

:17:20. > :17:22.David Cameron, focusing on boosting The Tech City project aims

:17:23. > :17:27.to place London firmly It's a space for entrepreneurs

:17:28. > :17:38.and start-ups in London. But there are plans to expand

:17:39. > :17:49.overseas, with a launch We have Rohan with us in the studio.

:17:50. > :17:54.Good morning. We often talk about this issue that we don't have

:17:55. > :18:00.Google, Facebook or the like. We don't necessarily have the big boys,

:18:01. > :18:05.but we're not doing too badly? I totally agree, there was a recent

:18:06. > :18:09.study which looked at the number of unicorns in Europe. Unicorn being a

:18:10. > :18:13.funny term describing a billion-dollar tech company. It is

:18:14. > :18:21.very hard to build a billion-dollar company. There is about 40 of these

:18:22. > :18:26.unicorns in Europe, half of them in the UK. We are punching well above

:18:27. > :18:31.our weight at European level, but something is going riot across

:18:32. > :18:36.Europe. Nobody has produced a tech company on the scale of Google,

:18:37. > :18:41.Amazon or Facebook. You need to be starting lots of companies for one

:18:42. > :18:47.or two of those to break out on that scale. But in America, and China,

:18:48. > :18:51.who has also produced use companies, you have massive, domestic single

:18:52. > :18:56.markets and we still don't have that in Europe. It will be more fractured

:18:57. > :19:00.with Britain leaving the EU, but more work needs to be done to create

:19:01. > :19:04.a digital single market, so companies can scale across Europe

:19:05. > :19:10.before taking on the world. British tech company could, and there are

:19:11. > :19:16.many that have done very well, got to a certain size, and it recently

:19:17. > :19:24.sold to Japan. There was an uproar at the time, but it seems to happen

:19:25. > :19:31.a lot were a company gets to a certain size and to get to the next

:19:32. > :19:37.level, they go across to other waters? I think that is right. There

:19:38. > :19:43.used to be a challenge in the UK five years ago, with even start-up

:19:44. > :19:47.funding. So the money that comes from friends, family and fools,

:19:48. > :19:51.risky capital. We introduced in the UK, the most generous tax breaks in

:19:52. > :19:55.the world to unlock that funding. If you're trying to raise ?50,000,

:19:56. > :20:01.?100,000, it has never been easier. I won't pretend it is a walk in the

:20:02. > :20:07.park, but it has never been easier. The hard part is trying to raise

:20:08. > :20:12.billions of pounds to grow into a world beater. The good news is,

:20:13. > :20:15.capital is global and you can raise, I have raised money just recently

:20:16. > :20:20.for my business, from Asia, America as well as the UK. It is more of a

:20:21. > :20:27.headache than say, silicon valley, then the investors on Sand Hill Road

:20:28. > :20:34.can write you a cheque. And they are queueing? Yes, but they are

:20:35. > :20:39.increasingly coming over to the UK. We have created a digital map so

:20:40. > :20:46.investors in New York in silicon valley could see what was exciting

:20:47. > :20:52.in London and start to engage and invest and we are seeing a lot of

:20:53. > :20:56.that now. We are getting some tweets from viewers. Chris, this is a story

:20:57. > :21:01.in the newspapers. Ultra high-speed broadband. Tubbs, would help

:21:02. > :21:06.question where the infrastructure in this country, compared to South

:21:07. > :21:13.Korea, you can download something in 25 seconds. Singapore and South

:21:14. > :21:21.Korea are way ahead of us. BT still has the monopoly on too much fibre

:21:22. > :21:27.broadband. We have got to break that up and get it going. Do you think

:21:28. > :21:30.Europe has the wrong attitude towards entrepreneurial success. In

:21:31. > :21:33.The States, if you set up ten businesses, it doesn't matter if

:21:34. > :21:36.they work, people still call you an entrepreneur. Here, it seems to be

:21:37. > :21:44.about scale and something coming. And if it doesn't happen, it is seen

:21:45. > :21:56.as a bit odd. One of the companies I run and founded, we have 150

:21:57. > :22:02.entrepreneurs based at Second Home. The culture is changing. There are

:22:03. > :22:04.various ways in which the establishment sneers at

:22:05. > :22:10.entrepreneurship. Look at the honour system. In the last ten years, less

:22:11. > :22:16.than 1% of honours have gone to people who have risked it all and

:22:17. > :22:20.started a business. The Queen's honours, the knighthoods. It is a

:22:21. > :22:23.shame because the system does encourage people to do certain

:22:24. > :22:29.things, philanthropy and public service, which is great. It should

:22:30. > :22:37.be in courage Inc entrepreneurship as well. Rohan, thank you very much.

:22:38. > :22:45.You have been contacting us. Cambridge is a hub for technology.

:22:46. > :22:48.In a moment we'll take a look through the Business Pages but first

:22:49. > :22:58.here's a quick reminder of how to get in touch with us.

:22:59. > :23:05.We will keep you up-to-date with the latest details with insight and

:23:06. > :23:10.analysis from the BBC's team of editors around the world. We want to

:23:11. > :23:19.hear from you, Get Involved on the BBC live web page, and on Twitter,

:23:20. > :23:39.at BBC business and on Facebook at BBC business news.

:23:40. > :23:50.The outgoing O2 chief is urging the Prime Minister to look at broadband

:23:51. > :23:57.regulation? Yes, what he is talking about is planning laws and how they

:23:58. > :24:03.can slow down the process of really essential investment. It is hard to

:24:04. > :24:10.disagree with what he said when you go to other parts of the world where

:24:11. > :24:15.there are fewer constraints on planning. It is the straightening

:24:16. > :24:20.when you see the speed at which these things can happen and then you

:24:21. > :24:24.look at HS2, or the Heathrow expansion. All these things. The

:24:25. > :24:33.planning process has a purpose. You wouldn't want a free role. We are

:24:34. > :24:40.talking 500,000 mini masts just the G and that will be a blot on the

:24:41. > :24:45.landscape. If we drive out of cities, we lose any signal for quite

:24:46. > :24:50.some time. Let's stay with technology. This is in the Guardian,

:24:51. > :24:54.it is naming Facebook but is not necessarily Facebook at false. It

:24:55. > :24:59.says Facebook in the cart will call road deaths. There are these TV

:25:00. > :25:04.screens screens in these cars, your GPS is on there, you can watch the

:25:05. > :25:10.TV, look at cookery memories and it is a massive destruction? Only a

:25:11. > :25:19.couple of weeks ago I was driving near home and a car was coming at me

:25:20. > :25:26.on my side of the road, saw me at the last minute and swerve. It's

:25:27. > :25:32.because he was on his phone. We are saying the fines for being on your

:25:33. > :25:35.phone would double, six points on your licence. But if we are building

:25:36. > :25:40.this technology into the cars, it will be a problem. How do you police

:25:41. > :25:43.it? And this is the manufactures, Fiat, Toyota and Honda releasing

:25:44. > :25:50.models this year so you can check Facebook and Twitter on the go. The

:25:51. > :25:55.answer is, driverless cars then you can look as much as you like? I

:25:56. > :26:03.suppose so, but it one manufacturer is doing it, it becomes the norm.

:26:04. > :26:05.Thank you for your input today. That is it, we will see you tomorrow.