29/09/2016 BBC Business Live

This is Business Live from BBC News with Sally Bundock

The first deal for 8 years - the oil cartel OPEC agrees

a landmark deal to limit the production of crude.

But will it boost prices in the long term?

Live from London, that's our top story

Oil prices surged after the surprise agreement from OPEC so does this

mean a new lease of life for the divided cartel?

VW pledges a cleaner future as it tries to leave diesel-gate behind.

The boss has been speaking to Theo Leggett who is at

We'll be hearing that interview a bit later.

And energy stocks are pushing up markets

worldwide this is the scene in Europe right now.

Later in the programme we'll get the Inside Track on one of the most

And today we're looking at aggro in the air,

yes, unruly passengers causing incidents on board planes,

we saw a sharp increase of those last year -

so we want to know what ticks you off once you've left the tarmac

and should airports limit the amount of booze served in

A very warm welcome to the programme.

Don't hold back, tell us what gets on your nerves when you are on the

plane. We start in the Algerian capital

Algiers where the OPEC group of oil producing nations have

been holding talks. They have shocked global markets

by agreeing to limit oil production The collapse in the price

of crude from more than $100 a barrel to less than $50 has

hit oil producers hard. But in-fighting between them has

meant no co-ordinated action since the global financial crisis

eight years ago. Opec is proposing to

limit total oil output by its members to between 32

and a half million and 33 At the moment they are pumping

33.2 million barrels a day. So that's a production

cut of up to 700 It's not a lot on a global level -

and the details still have to be agreed -

but the news sent crude prices soaring -

Brent crude jumped 6% Cornelia Meyer Chief executive

of Meyer Resources is with me. Cornelia, great to have you with us.

They have agreed to agree, let's say, can I just say, I think this is

a walk. Because at a time when Russia is breaking records,

producing over 11 million barrels a day, you've got to run, getting back

up to speed, 700,000 won't do much. It won't do much but what is

significant is that they were able to have an in principle agreement

which as Sally says has not happened in eight years but hasn't happened

by design because they want to ease out shale producers and get people

who have a higher cost of production a bit out of the market. Yes it will

be very hard between now and the meeting in November for all the

countries to agree on the individual quotas because it isn't just Iran

that wants to increase production as they get out from under sanctions,

it's Nigeria and Libya who have come from out of internal strife and want

to up production again and Iran is trying to push production up. We

say, yes, they have reached a deal, they have because Saudi Arabia wants

to play ball now because its plan to knock of these American shale

producers who do fracking by keeping the price low has backfired. Saudi

Arabia has been dipping into its budget. We had a story yesterday

about Saudi ministers having big play cuts, it's in trouble. I am not

sure it is in trouble. What you always see when oil prices go down

in Saudi Arabia is that they suddenly have to write policies.

They stopped the ridiculous subsidies for Phil also some -- for

fuel, so some play cuts are good and they are acting more like a normal

economy which in the long run is a good thing -- play cuts. And the

Deputy Crown Prince is trying to wean the country and that off oil

and trying to get other industries further. Some say it is kicking the

can down the road, we've got until November 30 when this deal has to be

done for it to actually happen. In the meantime what will happen with

the price of oil, it is above $50 a barrel in the future, maybe towards

60, your thoughts? It's gone up way too fast overnight and it will come

down. It will be between 45 and 50. But next year you will see the price

go up because at some stage next year there will be an equilibrium of

demand and supply and watch out for 2018 because the oil price will be

so low, companies have and invested and when demand goes up they would

produce more and the lack of investment will affect production

and it isn't just like a light switch you can turn on. So watch out

for 2018 when I see oil prices and 60 and above. We will hold you to

that, Cornelia! You know you'll be punished if it doesn't come to! She

likes a challenge. Now other business stories.

A court in South Korea has denied request by prosecutors to arrest

the chairman of Lotte Group, Shin Dong-bin.

Prosecutors made the request earlier this week, for the court

to approve the arrest of the chairman.

That's on suspicion of embezzlement and breach of trust for activities

Lotte is a conglomerate with businesses ranging

Music streaming company Spotify is reportedly in talks to take over

The two sides are in advanced negotiations, according

The talks come at a time when competition in the streaming

Sweden's Spotify remains the market leader but faces increasing

competition from Apple Music and Amazon's recently

The UK Government and French energy giant EDF are set to sign a key

contract today that the new ?18 billion Hinkley Point see nuclear

power station. The EDF boss is expected to join high-ranking

officials from the UK, France and China at the behind closed doors

ceremony in London. This would be the UK's first nuclear plant is a

generation. The Heathrow expansion could be

coming back into the headlines. Check out our website. It's reported

that Theresa may may have enough support to press the

Maybe she can do it after all. Sharon is in Singapore, tell us all

about the energy stocks, liking the Opec news. That's right, to some

extent, you have told us a bit, it's all about the cut in production for

the first time in almost a decade by Opec, lifting Asian shares,

especially the Asian related ones so we are seeing shares of Japanese oil

companies doing well, up about 6% at the close. Japan patrolling

exploration, up to as much as 8% and we are even seeing Chinese oil

producers, some jumping of a 5%, Australia's Woodside Petroleum is up

over 7% today due to oil prices having surged the most since April

do to that decision. It had a domino effect with currencies of oil

exporting nations such as the Australian dollar which hit

three-week highs. Nonetheless analysts, as well as yours earlier

point out that this might all be short lived because we have the US

shale producers, who have been cutting production in recent months.

They might start increasing output now and drive down prices again.

It's the next Opec gathering in November that a lot of people say

will solidify those plans to cut output such as putting in place

targets for each member. That is when all of that will be decided.

Thank you, good to see. It's similar story in Europe, let's quickly show

you Europe which is trading well. For the FTSE 100, BP and Shell have

a heavy weighting in many pension funds. That market is up higher and

so are the other markets across the board for Europe. In terms of what

is happening in the US, Samir Hussein is on the case. The chief

executive of the US bank will again be going to Capitol Hill. His second

chance to explain how 2 million accounts were opened at his bank

without customers's knowledge. Earlier this month Mr Stump was

mauled by US lawmakers who criticised him and the bank for not

holding senior executives accountable. It seems the big

moneymaker for Pepsi these days but its premium and healthy brands. US

consumers are increasingly looking forward for healthier options. But

with demand for sports drinks like bottled water and juice means

third-quarter results could be affected. Grocery sales have hit

record lows which could affect one wholesaler and retailer, it's also

phasing out the sale of tobacco products which will also affect the

bottom line. Costco, I haven't used it here but I like it in the US. I

know it's your! James Foley, senior currency strategist at Rabobank is

here. Good to see you. Higher oil prices, what does that mean on the

currency market? It's good for commodity producers, even Australia

which does not produce much oil, you've got to put this into context,

most of these countries don't want a stronger exchange rate. Most

countries would still rather have a weaker exchange rate and that

includes of course the likes of Canada and Australia as well. The

Malaysian currency is going up strongly although the Japanese yen

has weakened, that's great news for Japan, struggling with a strong

currency. Interesting to see how all these things are tied up. It is.

About federal banks, the big boss of the Federal reserve, she was

speaking... Is this about central banks being independent? She was

grilled yesterday and one question was about questions that one Fed

official had made to the Clinton campaign, should she stand down? She

argued that there wasn't a conflict of interest although this does come

in the context of a big market discussion on central-bank

independence. There's a fear that central banks will lower interest

and we are in a cul-de-sac, we can we go from here, how else can this

two-minute growth, they've done everything they can. Should central

banks, more under the government all become more independent? It's an

unresolved argument. And with an election coming up in the USA Donald

Trump saying he isn't so happy about the independence of the Federal

reserve. Interest rates are lower now because the Fed is doing what

Obama wants so if Donald Trump were to win the presidency what would

happen to the independence of the central bank? Comeback, Jane,

to take us through the newspapers, we've got some good stories, what

ticks you off in the air? My children probably. Coming up,

learning languages, we'll get the heads up on one of the most popular

languages apps. Now let's talk some more

about Deutsche Bank and the German supersize bank has been in focus

all week with speculation This time yesterday it announced

the sale of one of its assets Deutsche that is facing liabilities

into the billions in the US. Our Business Correspondent Dominic

O'Connell joins us now If you ever tried to learn a

language, it's very hard to keep up with it. We get it into very small

chunks that you can use every day and integrate it in your day. Talk

us through how it works then, to you talk to your device, does it talk

back to you and can you have a conversation with your device in

that language, is that kind of how it works? Not exactly. You do talk

to your device because you have to practise the speech so there is a

speech recognition that gives you a score on how the conversation works,

but it's basically a structure that takes you from "hello my name is...

" to whatever level you want to go to and it's all the grammar in

there, it's pronunciation training, vole cab and everything that would

you would expect from language -- vocab.

It is a crowded market out there right, you have got Resetta,

Duo-Lingo. How do you deaf Rennes Shay? The shortest possible answer

is, it works. It sounds trivial because people have been learning

languages for a long time and it's nothing completely new but learning

languages with a device is something that we started with nine years ago

and that's still pretty new. It's not easy to get people using that

device to real proficiency giving them a language they can actually

use. In terms of your reach, you have got a great presence in Europe,

you have been in the US for one year, you are hoping to expand in

the United States. What about Asia though, you have not really gone for

the Asian market. Why not? The Asian markets are in the moment a little

too far for us because what we care about is the pairing of language. So

a British person will learn French in a different way than a German

person. We care a lot about these differences. Asian languages are a

very different base, they would require different learning

experiences, that's one. For two, the Asian markets are very exotic in

the online field. If you have a pure online offering, marketing like

China is not only dangerous but very, very expensive to go into. We

have got to wrap it up. I'm curious though, the hikes of the Spanish and

French are straightforward but the obscure languages? Is Indonesian

obscure enough for you? ! I think so, yes! It's suddenly easy enough

-- certainly easy enough. So we stick to European languages.

Russian? Yes, Russian is still European in a way, and that's the

only language that hasn't a pure Latin alphabet. We keep it to

languages that people use in these areas and that you can learn with

the same methodology. Learning Chinese requires a different app.

I can imagine so. How many languages do you speak? Meanwhile I would say

four, but I'm not good at languages like many, many of our users and I

still am trying and making progress. I have to say, continental

Europeans, you are much better than we English speakers, we are pretty

lazy. That's what I hear on this island a lot and I don't buy it. You

don't? ! OK. That's not true. OK. Thank you. Good luck with it all.

Fascinating stuff. To Paris now where the Motor Show

is getting under way. On Wednesday VW unveiled its latest

model, a small electric car. It has pledged to sell two

to three million electric The German car giant is struggling

to draw a line under the worst crisis in its 78-year history

after admitting using technology in its diesel cars

to cheat emissions tests. Our correspondent Theo Leggett

is there and has been speaking to VW Well, undoubtedly this company made

a huge mistake. We lost the trust of the authorities and our customers.

We are in the process of resolving the crisis. We are working very

constructively with the authorities in Germany, Europe and especially

the United States. We want to get an agreement with the Department of

Justice, hopefully this year. So that we can plan for the future

from a sound base, especially regarding the fines we are going to

have to pay. The investigations are going to show

what the route causes were. In the meantime, we've revised our business

methods. It remains to be seen who exactly was involved.

Jane Foley is joining us again to discuss.

Tubb Tubb Passengers in the air 17% up, trouble in the air? ! Only one

in four are related to alcohol and drugs, so three and four, you

know... What is going on? Exactly. A lot were

It's lack of education, people not used to flying and not knowing the

precedence yet. I don't know how much time we have, but we have got

Wayne who's tweeted saying I've not experienced boozy passengers but

those who use mobiles ticks him off. In the Daily Telegraph, the European

Union could implode when Britain leaves, says Liam Fox. Jane gives us

your take on that? Not sure that I agree with a lot of the context but

it's true to say that the European Union has got an awful lot of

stresses and strains and we know that from opinion polls. France,

Italy et cetera. Many countries have a lot of anti-EU sentiment and it

means next year will be a very interesting election year, France,

Germany, Netherlands. That's going to give us a big take. All European

politicians are aware that there are problems. Terrorism, immigration,

all part of this mix with Brexit as well. Some of his concerns though,

the implication being that it makes it worse when Britain exits, is a

little shallow I think. Great stuff, we appreciate that,

take care, thank you. Bye. Good morning. We have some autumnal

weather on the cards for the last few days of September.

Low pressure in the north bringing gales at