19/09/2016 BBC Business Live


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Combating climate change: 20 more countries are set


Live from London, that's our top story on Monday the 19th


Will enough nations sign up to the Paris climate change accord?


It's one of the big topics under discussion this week


at the United Nations' 71st General Assembly.


Also in the programme: The risks of a Chinese banking crisis


are mounting according to the banking industry's


It estimates that $1.3 trillion in loans are at risk of default.


The European markets have started one percentage point higher. A


technical snag meant that the afternoon trading session was cut


short by about an hour and a half. And this week at the BBC


we are asking whether the UK can compete in the global technology


industry and why we haven't produced a tech giant yet


on the scale of Google or Apple. We'll be joined by technology


entrepeneur Rohan Silva So why not get involved


in the conversation - do you think the tech talent


in Britain has what it takes to create the next Facebook -


and if not why not? We start with one of the biggest


issues facing businesses and individuals around


the world - climate change. It seems as if we're about to see


a major change in the way The United Nations says at least 20


more countries have indicated they will join the Paris climate


change agreement later this week. In the past month the United States,


China and Brazil have all ratified their participation


in the Paris agreement and promised to cut back


on greenhouse gas emissions. So far 27 countries have already


joined the climate deal. But this agreement will only come


into force when countries representing at least 55% of global


emissions have formally joined it. The reason for the threshold


is because countries set their own targets


for reducing emissions. Yet questions still remain


about ending fossil fuel subsidies So far there has been little


commitment to phase them out. I'm joined by Ben Caldecott,


Director of sustainable finance programme at University


of Oxford Smith School. Thank you for being on the


programme. It is encouraging that 20 more countries are poised to sign


the Paris accord. How much for the do we need to go? It is encouraging,


but the key thing is to get this done before the US presidential


elections in November. That is what elections in November. That is what


is generating impetus for countries to ratify, in case Donald Trump


becomes president. That aside, just tell us about the business


community. While governments have been signing up, or not as the case


may be, businesses have had to get on-board quickly. Tell us which


industries are further ahead others. Business is leading the charge when


it comes down to clean energy and technology. In Europe, we are seeing


80 to 90% investment. Many others are only just starting to look at


these issues. I am thinking about international companies, mining


companies, companies with a lot of coal-fired power stations in their


portfolios. Those companies face very significant challenges. And


huge costs if they have two is change their ways, as it were. -- if


they have to change their ways. Paris is providing an international


accord on this, isn't it? Yes it provides an international framework


that will ratchet up the targets and that will ratchet up the targets and


help provide that signalled the business. It is not just about an


international agreement. A lot of the motivation for regulatory change


is not to do with climate change but to do with air pollution of water


pollution. Even if climate change once an issue, policies would likely


come into force that would force them to change their business


practices. You mentioned the November deadline of the US election


- are you confident we might hit the target before then the number of


countries signing up? I am. The easiest way of getting to the number


of 55 countries and 55% of emissions is if European member states agreed


to ratify. That would be the quickest way of achieving it. The


signals seem positive. We appreciate your time. Thank you for joining us.


Cancel your charter agreement and return your ship to the ship owner.


That's what a judge in Seoul has ordered of all Hanjin


Shipping vessels that have unloaded their cargo.


Delays are already costing more than 2 million


Samsung has offloaded its stake in four technology companies -


including Japan's Sharp - in order to free up money to focus


The South Korean tech giant is mired in a major recall of Galaxy Note 7s


It's being reported the value of the stakes sold totals around


Global private equity groups are joining forces with car parts


makers to invest in the scandal-hit airbag maker Takata,


as the industry tries to help the Japanese group bear $9.8 billion


Takata, one of the world's largest maker of vehicle airbags,


was forced into a massive recall after its airbags were linked


to at least 14 deaths and more than 100 injuries worldwide.


More than 100 million vehicles may be affected.


There are a lot more stories on the Business Live page. The port of


Melbourne was sold. An investment firm from Australia bought it. We


immediately thought a Chinese company, but that is not the case.


China is a big investor in end to structure. -- in infrastructure.


British business confidence has fallen to a four-year low


Its survey says confidence has been dented by economic uncertainty


and a slowdown in demand following the EU referendum.


The services sector was the worst affected.


More than a quarter of all companies surveyed said that uncertainty


was the main threat to growth over the next six months.


Could China be facing a full blown banking crisis?


According to the Bank of International Settlements,


the central bank for central bankers, if you will,


Mariko Oi in Singapore has been following this story for us.


The health of China's banking sector has been a cause of concern, but


according to this latest daddy, vulnerability in China is three


times the danger threshold. It means that credit growth is excessive and


a potential financial bust is looming. It was also warned that


loans worth over $1 trillion are at risk of default. Most banks are


state-owned and state-controlled, and the Government says that they


will be able to withstand any shocks, but this report comes as a


stark warning. Let's have a quick look at the markets.


Asian shares advancing as markets bet the US


Federal Reserve will skip a chance to raise rates this week.


Oil has bounced on talk of a deal on output and reports of fighting


around Libyan oil ports which would constrict supply.


This is how the European session has opened.


As expected, we have seen a little bit of a balance today. Some


volatility in equities, as people get back to their trading desks.


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


The big economic event this week is the Federal Reserve's meeting on


not expecting a rise to, this not expecting a rise to, this


meeting, but many are expecting debate among members of the Federal


Reserve committee with regard to the timing of the next rate increase. We


will hear about the health of the US housing market. On Tuesday, housing


numbers are expected to show that starts slowed in August. On


Thursday, data from the National Association of Realtors is expected


to show that existing home sales went up for the month of August,


painting a mixed picture of America's housing market. You see,


already, the stage is set for the week. We are joint by Tom from


Fidelity International. It is about the Japanese central bank. We will


have announcements from the bank of Japan and the US Federal Reserve on


Wednesday. The bank of Japan will be more interesting in some ways


because they have promised a review of the effectiveness of quantitative


easing. It is a big question and many people say it is good at


pumping up asset prices but less good at stimulating the economy. The


Japanese are common in me is pretty -- the Japanese economy is pretty


moribund. Measures designed to stimulate the economy through tax


easing and monetary stimulus and changes to the competitiveness of


the Japanese economy are having struggle -- are having a struggle to


get any traction. As time goes on, people are raising questions around


the efficacy of monetary policy and banks are putting more emphasis on


governments... They have probably been doing it more than most other


countries, but there is a groundswell of opinion that the


burden needs to be balanced more equally between central banks,


monetary policy, and governments and fiscal policy. The austerity


programme is being questioned in the UK, and the same thing in Europe.


That is why there is a big focus on the Autumn Statement. We have a


relatively new Chancellor of the Exchequer in the UK, and people are


wondering what he will do along with Mark Carney, the governor of the


Bank of England. Exactly right. It is clear that with only 0.25% to go


until we get to see rope interest-rate in the UK, Mark Carney


has been calling for the Chancellor to do his bit. One more question,


one might think that the bank of International settlement turning


round and saying we might have a full-blown crisis in China might put


a wobble in the markets, but not so much as a ripple. Why not? This is a


common theme. It is true that the Chinese economy is heavily indebted.


It is something like 250% of GDP, a very high figure for a developing


country. The banks are all owned by the Government, effectively, so


there is no risk that the banks. Lending if the Government wants them


to keep doing so. The Government is in a financial stake that is


different from Italian, for -- Italy, for example. The Chinese can


keep stimulating, but they are trying to transition the economy


more towards a consumption driven economy and away from investment and


exports. Every time there is a slowdown, they revert to type and


they just stimulate again. Thank you, Tom. We will see you in about


five minutes. Still to come - If I asked


you to think of a global technology company, the odds are the name you'd


come up with would be American. We're starting a special


look at tech talent. You're with Business


Live from BBC News. Innovation, improved customer


service, new offers that would bundle different


household services together. Those are some of the potential


benefits that the regulator Ofwat says could be in the pipeline


if there was more competition Rob Young is in our


Business Newsroom. Rob, at present, people have no


choice over who supplies them water, It could be. At the moment, you get


water from the regional monopoly in your area, but that the Government's


request, Ofwat has been looking at the pros and cons of opening up the


water market in the way that the market for gas and electricity was


opened at 20 odd years ago. The regulatory saying it could lead to


innovation in customer service, and also perhaps to lower bills as well.


That's -- perhaps not huge, the saving, around ?8 per year. A lot of


people would not find it worth the bother of switching. This is not


definitely going to go ahead, because the final decision will rest


with the Government. This was something that the regulator has


been tasked with looking at by the previous Chancellor, George Osborne.


Several of his ideas seem to have run into the long grass, so it may


well be that the current Government decides it doesn't want to go ahead


with this. The water industry this morning have said that this is a


serious undertaking and they say it deserves what they say is very


careful consideration before it is embarked upon, because competition


could, of course, drive down bills and improve innovation, but the


regulator is also warning that in any competitive market, there are


losers as well as winners. I had a question, but I've been told I'm not


allowed. Thank you for your input. We are so bad at switching,


apparently. Also if you are only going to get ?8 back a year on your


bills, do people think it is worth it?


When I get my water bill going up every year, and I think there is


nothing I can do about this. Microsoft is too close Skype London


office. We will look at that in more detail in a short while.


You're watching Business Live, our top story...


Combating climate change - 20 more countries are set


It seems as if we're about to see a major change in the way


A quick look at how markets are faring.


Japan are closed for a public holiday but London are up over 1%.


The price of oil bouncing over 1% higher today after hitting a


one-month low on Friday. What does it take to transform a


city into a thriving technology hub? That's a question that many cities


around the world are grappling with. Rohan Silva spent three years


as a senior policy advisor to Britain's former prime minister,


David Cameron, focusing on boosting The Tech City project aims


to place London firmly It's a space for entrepreneurs


and start-ups in London. But there are plans to expand


overseas, with a launch We have Rohan with us in the studio.


Good morning. We often talk about this issue that we don't have


Google, Facebook or the like. We don't necessarily have the big boys,


but we're not doing too badly? I totally agree, there was a recent


study which looked at the number of unicorns in Europe. Unicorn being a


funny term describing a billion-dollar tech company. It is


very hard to build a billion-dollar company. There is about 40 of these


unicorns in Europe, half of them in the UK. We are punching well above


our weight at European level, but something is going riot across


Europe. Nobody has produced a tech company on the scale of Google,


Amazon or Facebook. You need to be starting lots of companies for one


or two of those to break out on that scale. But in America, and China,


who has also produced use companies, you have massive, domestic single


markets and we still don't have that in Europe. It will be more fractured


with Britain leaving the EU, but more work needs to be done to create


a digital single market, so companies can scale across Europe


before taking on the world. British tech company could, and there are


many that have done very well, got to a certain size, and it recently


sold to Japan. There was an uproar at the time, but it seems to happen


a lot were a company gets to a certain size and to get to the next


level, they go across to other waters? I think that is right. There


used to be a challenge in the UK five years ago, with even start-up


funding. So the money that comes from friends, family and fools,


risky capital. We introduced in the UK, the most generous tax breaks in


the world to unlock that funding. If you're trying to raise ?50,000,


?100,000, it has never been easier. I won't pretend it is a walk in the


park, but it has never been easier. The hard part is trying to raise


billions of pounds to grow into a world beater. The good news is,


capital is global and you can raise, I have raised money just recently


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


headache than say, silicon valley, then the investors on Sand Hill Road


can write you a cheque. And they are queueing? Yes, but they are


increasingly coming over to the UK. We have created a digital map so


investors in New York in silicon valley could see what was exciting


in London and start to engage and invest and we are seeing a lot of


that now. We are getting some tweets from viewers. Chris, this is a story


in the newspapers. Ultra high-speed broadband. Tubbs, would help


question where the infrastructure in this country, compared to South


Korea, you can download something in 25 seconds. Singapore and South


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


broadband. We have got to break that up and get it going. Do you think


Europe has the wrong attitude towards entrepreneurial success. In


The States, if you set up ten businesses, it doesn't matter if


they work, people still call you an entrepreneur. Here, it seems to be


about scale and something coming. And if it doesn't happen, it is seen


as a bit odd. One of the companies I run and founded, we have 150


entrepreneurs based at Second Home. The culture is changing. There are


various ways in which the establishment sneers at


entrepreneurship. Look at the honour system. In the last ten years, less


than 1% of honours have gone to people who have risked it all and


started a business. The Queen's honours, the knighthoods. It is a


shame because the system does encourage people to do certain


things, philanthropy and public service, which is great. It should


be in courage Inc entrepreneurship as well. Rohan, thank you very much.


You have been contacting us. Cambridge is a hub for technology.


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


We will keep you up-to-date with the latest details with insight and


analysis from the BBC's team of editors around the world. We want to


hear from you, Get Involved on the BBC live web page, and on Twitter,


at BBC business and on Facebook at BBC business news.


The outgoing O2 chief is urging the Prime Minister to look at broadband


regulation? Yes, what he is talking about is planning laws and how they


can slow down the process of really essential investment. It is hard to


disagree with what he said when you go to other parts of the world where


there are fewer constraints on planning. It is the straightening


when you see the speed at which these things can happen and then you


look at HS2, or the Heathrow expansion. All these things. The


planning process has a purpose. You wouldn't want a free role. We are


talking 500,000 mini masts just the G and that will be a blot on the


landscape. If we drive out of cities, we lose any signal for quite


some time. Let's stay with technology. This is in the Guardian,


it is naming Facebook but is not necessarily Facebook at false. It


says Facebook in the cart will call road deaths. There are these TV


screens screens in these cars, your GPS is on there, you can watch the


TV, look at cookery memories and it is a massive destruction? Only a


couple of weeks ago I was driving near home and a car was coming at me


on my side of the road, saw me at the last minute and swerve. It's


because he was on his phone. We are saying the fines for being on your


phone would double, six points on your licence. But if we are building


this technology into the cars, it will be a problem. How do you police


it? And this is the manufactures, Fiat, Toyota and Honda releasing


models this year so you can check Facebook and Twitter on the go. The


answer is, driverless cars then you can look as much as you like? I


suppose so, but it one manufacturer is doing it, it becomes the norm.


Thank you for your input today. That is it, we will see you tomorrow.


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