:00:12. > :00:13.This is Business Live from BBC News with Sally Bundock
:00:14. > :00:18.The first deal for 8 years - the oil cartel OPEC agrees
:00:19. > :00:20.a landmark deal to limit the production of crude.
:00:21. > :00:22.But will it boost prices in the long term?
:00:23. > :00:24.Live from London, that's our top story
:00:25. > :00:50.Oil prices surged after the surprise agreement from OPEC so does this
:00:51. > :00:52.mean a new lease of life for the divided cartel?
:00:53. > :00:59.VW pledges a cleaner future as it tries to leave diesel-gate behind.
:01:00. > :01:02.The boss has been speaking to Theo Leggett who is at
:01:03. > :01:08.We'll be hearing that interview a bit later.
:01:09. > :01:12.And energy stocks are pushing up markets
:01:13. > :01:19.worldwide this is the scene in Europe right now.
:01:20. > :01:24.Later in the programme we'll get the Inside Track on one of the most
:01:25. > :01:34.And today we're looking at aggro in the air,
:01:35. > :01:36.yes, unruly passengers causing incidents on board planes,
:01:37. > :01:39.we saw a sharp increase of those last year -
:01:40. > :01:42.so we want to know what ticks you off once you've left the tarmac
:01:43. > :01:44.and should airports limit the amount of booze served in
:01:45. > :01:57.A very warm welcome to the programme.
:01:58. > :02:00.Don't hold back, tell us what gets on your nerves when you are on the
:02:01. > :02:02.plane. We start in the Algerian capital
:02:03. > :02:05.Algiers where the OPEC group of oil producing nations have
:02:06. > :02:07.been holding talks. They have shocked global markets
:02:08. > :02:09.by agreeing to limit oil production The collapse in the price
:02:10. > :02:20.of crude from more than $100 a barrel to less than $50 has
:02:21. > :02:23.hit oil producers hard. But in-fighting between them has
:02:24. > :02:26.meant no co-ordinated action since the global financial crisis
:02:27. > :02:28.eight years ago. Opec is proposing to
:02:29. > :02:38.limit total oil output by its members to between 32
:02:39. > :02:42.and a half million and 33 At the moment they are pumping
:02:43. > :02:56.33.2 million barrels a day. So that's a production
:02:57. > :03:00.cut of up to 700 It's not a lot on a global level -
:03:01. > :03:05.and the details still have to be agreed -
:03:06. > :03:08.but the news sent crude prices soaring -
:03:09. > :03:17.Brent crude jumped 6% Cornelia Meyer Chief executive
:03:18. > :03:31.of Meyer Resources is with me. Cornelia, great to have you with us.
:03:32. > :03:38.They have agreed to agree, let's say, can I just say, I think this is
:03:39. > :03:41.a walk. Because at a time when Russia is breaking records,
:03:42. > :03:47.producing over 11 million barrels a day, you've got to run, getting back
:03:48. > :03:52.up to speed, 700,000 won't do much. It won't do much but what is
:03:53. > :03:56.significant is that they were able to have an in principle agreement
:03:57. > :04:02.which as Sally says has not happened in eight years but hasn't happened
:04:03. > :04:05.by design because they want to ease out shale producers and get people
:04:06. > :04:12.who have a higher cost of production a bit out of the market. Yes it will
:04:13. > :04:16.be very hard between now and the meeting in November for all the
:04:17. > :04:20.countries to agree on the individual quotas because it isn't just Iran
:04:21. > :04:29.that wants to increase production as they get out from under sanctions,
:04:30. > :04:33.it's Nigeria and Libya who have come from out of internal strife and want
:04:34. > :04:38.to up production again and Iran is trying to push production up. We
:04:39. > :04:43.say, yes, they have reached a deal, they have because Saudi Arabia wants
:04:44. > :04:48.to play ball now because its plan to knock of these American shale
:04:49. > :04:54.producers who do fracking by keeping the price low has backfired. Saudi
:04:55. > :05:00.Arabia has been dipping into its budget. We had a story yesterday
:05:01. > :05:06.about Saudi ministers having big play cuts, it's in trouble. I am not
:05:07. > :05:10.sure it is in trouble. What you always see when oil prices go down
:05:11. > :05:14.in Saudi Arabia is that they suddenly have to write policies.
:05:15. > :05:22.They stopped the ridiculous subsidies for Phil also some -- for
:05:23. > :05:26.fuel, so some play cuts are good and they are acting more like a normal
:05:27. > :05:33.economy which in the long run is a good thing -- play cuts. And the
:05:34. > :05:38.Deputy Crown Prince is trying to wean the country and that off oil
:05:39. > :05:46.and trying to get other industries further. Some say it is kicking the
:05:47. > :05:50.can down the road, we've got until November 30 when this deal has to be
:05:51. > :05:57.done for it to actually happen. In the meantime what will happen with
:05:58. > :06:03.the price of oil, it is above $50 a barrel in the future, maybe towards
:06:04. > :06:13.60, your thoughts? It's gone up way too fast overnight and it will come
:06:14. > :06:19.down. It will be between 45 and 50. But next year you will see the price
:06:20. > :06:24.go up because at some stage next year there will be an equilibrium of
:06:25. > :06:32.demand and supply and watch out for 2018 because the oil price will be
:06:33. > :06:38.so low, companies have and invested and when demand goes up they would
:06:39. > :06:41.produce more and the lack of investment will affect production
:06:42. > :06:48.and it isn't just like a light switch you can turn on. So watch out
:06:49. > :06:53.for 2018 when I see oil prices and 60 and above. We will hold you to
:06:54. > :06:58.that, Cornelia! You know you'll be punished if it doesn't come to! She
:06:59. > :07:01.likes a challenge. Now other business stories.
:07:02. > :07:04.A court in South Korea has denied request by prosecutors to arrest
:07:05. > :07:06.the chairman of Lotte Group, Shin Dong-bin.
:07:07. > :07:08.Prosecutors made the request earlier this week, for the court
:07:09. > :07:10.to approve the arrest of the chairman.
:07:11. > :07:17.That's on suspicion of embezzlement and breach of trust for activities
:07:18. > :07:20.Lotte is a conglomerate with businesses ranging
:07:21. > :07:24.Music streaming company Spotify is reportedly in talks to take over
:07:25. > :07:32.The two sides are in advanced negotiations, according
:07:33. > :07:38.The talks come at a time when competition in the streaming
:07:39. > :07:41.Sweden's Spotify remains the market leader but faces increasing
:07:42. > :07:43.competition from Apple Music and Amazon's recently
:07:44. > :07:58.The UK Government and French energy giant EDF are set to sign a key
:07:59. > :08:03.contract today that the new ?18 billion Hinkley Point see nuclear
:08:04. > :08:07.power station. The EDF boss is expected to join high-ranking
:08:08. > :08:11.officials from the UK, France and China at the behind closed doors
:08:12. > :08:13.ceremony in London. This would be the UK's first nuclear plant is a
:08:14. > :08:35.generation. The Heathrow expansion could be
:08:36. > :08:41.coming back into the headlines. Check out our website. It's reported
:08:42. > :08:43.that Theresa may may have enough support to press the
:08:44. > :09:13.Maybe she can do it after all. Sharon is in Singapore, tell us all
:09:14. > :09:21.about the energy stocks, liking the Opec news. That's right, to some
:09:22. > :09:25.extent, you have told us a bit, it's all about the cut in production for
:09:26. > :09:29.the first time in almost a decade by Opec, lifting Asian shares,
:09:30. > :09:34.especially the Asian related ones so we are seeing shares of Japanese oil
:09:35. > :09:42.companies doing well, up about 6% at the close. Japan patrolling
:09:43. > :09:49.exploration, up to as much as 8% and we are even seeing Chinese oil
:09:50. > :09:55.producers, some jumping of a 5%, Australia's Woodside Petroleum is up
:09:56. > :10:00.over 7% today due to oil prices having surged the most since April
:10:01. > :10:04.do to that decision. It had a domino effect with currencies of oil
:10:05. > :10:09.exporting nations such as the Australian dollar which hit
:10:10. > :10:12.three-week highs. Nonetheless analysts, as well as yours earlier
:10:13. > :10:17.point out that this might all be short lived because we have the US
:10:18. > :10:21.shale producers, who have been cutting production in recent months.
:10:22. > :10:26.They might start increasing output now and drive down prices again.
:10:27. > :10:32.It's the next Opec gathering in November that a lot of people say
:10:33. > :10:36.will solidify those plans to cut output such as putting in place
:10:37. > :10:44.targets for each member. That is when all of that will be decided.
:10:45. > :10:52.Thank you, good to see. It's similar story in Europe, let's quickly show
:10:53. > :10:57.you Europe which is trading well. For the FTSE 100, BP and Shell have
:10:58. > :11:04.a heavy weighting in many pension funds. That market is up higher and
:11:05. > :11:08.so are the other markets across the board for Europe. In terms of what
:11:09. > :11:13.is happening in the US, Samir Hussein is on the case. The chief
:11:14. > :11:19.executive of the US bank will again be going to Capitol Hill. His second
:11:20. > :11:23.chance to explain how 2 million accounts were opened at his bank
:11:24. > :11:28.without customers's knowledge. Earlier this month Mr Stump was
:11:29. > :11:31.mauled by US lawmakers who criticised him and the bank for not
:11:32. > :11:37.holding senior executives accountable. It seems the big
:11:38. > :11:44.moneymaker for Pepsi these days but its premium and healthy brands. US
:11:45. > :11:48.consumers are increasingly looking forward for healthier options. But
:11:49. > :11:54.with demand for sports drinks like bottled water and juice means
:11:55. > :12:03.third-quarter results could be affected. Grocery sales have hit
:12:04. > :12:05.record lows which could affect one wholesaler and retailer, it's also
:12:06. > :12:11.phasing out the sale of tobacco products which will also affect the
:12:12. > :12:21.bottom line. Costco, I haven't used it here but I like it in the US. I
:12:22. > :12:26.know it's your! James Foley, senior currency strategist at Rabobank is
:12:27. > :12:31.here. Good to see you. Higher oil prices, what does that mean on the
:12:32. > :12:34.currency market? It's good for commodity producers, even Australia
:12:35. > :12:38.which does not produce much oil, you've got to put this into context,
:12:39. > :12:44.most of these countries don't want a stronger exchange rate. Most
:12:45. > :12:48.countries would still rather have a weaker exchange rate and that
:12:49. > :12:54.includes of course the likes of Canada and Australia as well. The
:12:55. > :12:57.Malaysian currency is going up strongly although the Japanese yen
:12:58. > :13:01.has weakened, that's great news for Japan, struggling with a strong
:13:02. > :13:08.currency. Interesting to see how all these things are tied up. It is.
:13:09. > :13:17.About federal banks, the big boss of the Federal reserve, she was
:13:18. > :13:21.speaking... Is this about central banks being independent? She was
:13:22. > :13:27.grilled yesterday and one question was about questions that one Fed
:13:28. > :13:31.official had made to the Clinton campaign, should she stand down? She
:13:32. > :13:35.argued that there wasn't a conflict of interest although this does come
:13:36. > :13:38.in the context of a big market discussion on central-bank
:13:39. > :13:43.independence. There's a fear that central banks will lower interest
:13:44. > :13:47.and we are in a cul-de-sac, we can we go from here, how else can this
:13:48. > :13:52.two-minute growth, they've done everything they can. Should central
:13:53. > :13:56.banks, more under the government all become more independent? It's an
:13:57. > :14:01.unresolved argument. And with an election coming up in the USA Donald
:14:02. > :14:05.Trump saying he isn't so happy about the independence of the Federal
:14:06. > :14:10.reserve. Interest rates are lower now because the Fed is doing what
:14:11. > :14:11.Obama wants so if Donald Trump were to win the presidency what would
:14:12. > :14:25.happen to the independence of the central bank? Comeback, Jane,
:14:26. > :14:27.to take us through the newspapers, we've got some good stories, what
:14:28. > :14:29.ticks you off in the air? My children probably. Coming up,
:14:30. > :14:33.learning languages, we'll get the heads up on one of the most popular
:14:34. > :14:37.languages apps. Now let's talk some more
:14:38. > :14:39.about Deutsche Bank and the German supersize bank has been in focus
:14:40. > :14:42.all week with speculation This time yesterday it announced
:14:43. > :14:46.the sale of one of its assets Deutsche that is facing liabilities
:14:47. > :14:53.into the billions in the US. Our Business Correspondent Dominic
:14:54. > :19:21.O'Connell joins us now If you ever tried to learn a
:19:22. > :19:25.language, it's very hard to keep up with it. We get it into very small
:19:26. > :19:30.chunks that you can use every day and integrate it in your day. Talk
:19:31. > :19:34.us through how it works then, to you talk to your device, does it talk
:19:35. > :19:37.back to you and can you have a conversation with your device in
:19:38. > :19:43.that language, is that kind of how it works? Not exactly. You do talk
:19:44. > :19:48.to your device because you have to practise the speech so there is a
:19:49. > :19:57.speech recognition that gives you a score on how the conversation works,
:19:58. > :20:01.but it's basically a structure that takes you from "hello my name is...
:20:02. > :20:06." to whatever level you want to go to and it's all the grammar in
:20:07. > :20:11.there, it's pronunciation training, vole cab and everything that would
:20:12. > :20:14.you would expect from language -- vocab.
:20:15. > :20:22.It is a crowded market out there right, you have got Resetta,
:20:23. > :20:29.Duo-Lingo. How do you deaf Rennes Shay? The shortest possible answer
:20:30. > :20:33.is, it works. It sounds trivial because people have been learning
:20:34. > :20:37.languages for a long time and it's nothing completely new but learning
:20:38. > :20:44.languages with a device is something that we started with nine years ago
:20:45. > :20:50.and that's still pretty new. It's not easy to get people using that
:20:51. > :20:55.device to real proficiency giving them a language they can actually
:20:56. > :20:58.use. In terms of your reach, you have got a great presence in Europe,
:20:59. > :21:02.you have been in the US for one year, you are hoping to expand in
:21:03. > :21:06.the United States. What about Asia though, you have not really gone for
:21:07. > :21:12.the Asian market. Why not? The Asian markets are in the moment a little
:21:13. > :21:16.too far for us because what we care about is the pairing of language. So
:21:17. > :21:21.a British person will learn French in a different way than a German
:21:22. > :21:28.person. We care a lot about these differences. Asian languages are a
:21:29. > :21:34.very different base, they would require different learning
:21:35. > :21:40.experiences, that's one. For two, the Asian markets are very exotic in
:21:41. > :21:43.the online field. If you have a pure online offering, marketing like
:21:44. > :21:52.China is not only dangerous but very, very expensive to go into. We
:21:53. > :21:57.have got to wrap it up. I'm curious though, the hikes of the Spanish and
:21:58. > :22:01.French are straightforward but the obscure languages? Is Indonesian
:22:02. > :22:06.obscure enough for you? ! I think so, yes! It's suddenly easy enough
:22:07. > :22:11.-- certainly easy enough. So we stick to European languages.
:22:12. > :22:19.Russian? Yes, Russian is still European in a way, and that's the
:22:20. > :22:23.only language that hasn't a pure Latin alphabet. We keep it to
:22:24. > :22:28.languages that people use in these areas and that you can learn with
:22:29. > :22:32.the same methodology. Learning Chinese requires a different app.
:22:33. > :22:38.I can imagine so. How many languages do you speak? Meanwhile I would say
:22:39. > :22:45.four, but I'm not good at languages like many, many of our users and I
:22:46. > :22:49.still am trying and making progress. I have to say, continental
:22:50. > :22:52.Europeans, you are much better than we English speakers, we are pretty
:22:53. > :22:57.lazy. That's what I hear on this island a lot and I don't buy it. You
:22:58. > :23:00.don't? ! OK. That's not true. OK. Thank you. Good luck with it all.
:23:01. > :23:03.Fascinating stuff. To Paris now where the Motor Show
:23:04. > :23:06.is getting under way. On Wednesday VW unveiled its latest
:23:07. > :23:09.model, a small electric car. It has pledged to sell two
:23:10. > :23:11.to three million electric The German car giant is struggling
:23:12. > :23:17.to draw a line under the worst crisis in its 78-year history
:23:18. > :23:20.after admitting using technology in its diesel cars
:23:21. > :23:23.to cheat emissions tests. Our correspondent Theo Leggett
:23:24. > :23:38.is there and has been speaking to VW Well, undoubtedly this company made
:23:39. > :23:42.a huge mistake. We lost the trust of the authorities and our customers.
:23:43. > :23:46.We are in the process of resolving the crisis. We are working very
:23:47. > :23:50.constructively with the authorities in Germany, Europe and especially
:23:51. > :23:53.the United States. We want to get an agreement with the Department of
:23:54. > :23:57.Justice, hopefully this year. So that we can plan for the future
:23:58. > :24:01.from a sound base, especially regarding the fines we are going to
:24:02. > :24:06.have to pay. The investigations are going to show
:24:07. > :24:10.what the route causes were. In the meantime, we've revised our business
:24:11. > :24:21.methods. It remains to be seen who exactly was involved.
:24:22. > :24:24.Jane Foley is joining us again to discuss.
:24:25. > :24:34.Tubb Tubb Passengers in the air 17% up, trouble in the air? ! Only one
:24:35. > :24:41.in four are related to alcohol and drugs, so three and four, you
:24:42. > :24:53.know... What is going on? Exactly. A lot were
:24:54. > :25:00.It's lack of education, people not used to flying and not knowing the
:25:01. > :25:08.precedence yet. I don't know how much time we have, but we have got
:25:09. > :25:12.Wayne who's tweeted saying I've not experienced boozy passengers but
:25:13. > :25:15.those who use mobiles ticks him off. In the Daily Telegraph, the European
:25:16. > :25:20.Union could implode when Britain leaves, says Liam Fox. Jane gives us
:25:21. > :25:23.your take on that? Not sure that I agree with a lot of the context but
:25:24. > :25:26.it's true to say that the European Union has got an awful lot of
:25:27. > :25:30.stresses and strains and we know that from opinion polls. France,
:25:31. > :25:35.Italy et cetera. Many countries have a lot of anti-EU sentiment and it
:25:36. > :25:38.means next year will be a very interesting election year, France,
:25:39. > :25:43.Germany, Netherlands. That's going to give us a big take. All European
:25:44. > :25:48.politicians are aware that there are problems. Terrorism, immigration,
:25:49. > :25:53.all part of this mix with Brexit as well. Some of his concerns though,
:25:54. > :25:58.the implication being that it makes it worse when Britain exits, is a
:25:59. > :26:01.little shallow I think. Great stuff, we appreciate that,
:26:02. > :26:12.take care, thank you. Bye. Good morning. We have some autumnal
:26:13. > :26:16.weather on the cards for the last few days of September.
:26:17. > :26:17.Low pressure in the north bringing gales at