12/10/2016

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:00:11. > :00:13.This is Business Live from BBC News with Ben Thompson and Sally Bundock.

:00:14. > :00:17.Oil prices creep higher as major producers meet

:00:18. > :00:27.But can they agree on moves to prop up the price of crude?

:00:28. > :00:37.Live from London, that's our top story on Wednesday, 12th October.

:00:38. > :00:41.Oil prices have rallied in recent weeks.

:00:42. > :00:43.But the continued revival relies on producers agreeing

:00:44. > :00:52.We'll assess what's at stake and what it means for us.

:00:53. > :01:00.We'll hear from New York about the boom in the market

:01:01. > :01:05.And after the FTSE 100 hit a record intraday high

:01:06. > :01:08.in yesterday's session, all eyes on the market that's up

:01:09. > :01:15.Future fashion, we'll find out about the gizmo that lets you try

:01:16. > :01:26.clothes before you buy through your online avatar.

:01:27. > :01:29.We're talking about second-hand sneakers later - we want to know -

:01:30. > :01:44.Sally and I have our trainers in the studio, it is not pleasant!

:01:45. > :01:49.The price of oil is in the spotlight once again as ministers from oil

:01:50. > :01:54.They'll be hoping to hammer out a deal to boost crude prices

:01:55. > :02:00.Today's meeting follows the announcement last month

:02:01. > :02:03.from Opec that the oil cartel would cut production

:02:04. > :02:09.for the first time since 2008 - by around 700,000 barrels a day.

:02:10. > :02:11.That left key questions - which countries would reduce

:02:12. > :02:18.In other words how will Opec share the burden among its members?

:02:19. > :02:25.And that's expected to be the focus of a lot of the debate at today's

:02:26. > :02:27.World Energy Congress - ahead of Opec's next official

:02:28. > :02:33.But nonetheless, despite a lack of clarity about Opec's actions,

:02:34. > :02:36.oil prices have been bouncing back in recent weeks.

:02:37. > :02:38.In fact, they're up around 15% since September.

:02:39. > :02:41.Well, prices have also been boosted by President Putin of Russia

:02:42. > :02:44.announcing that the country will also limit production,

:02:45. > :02:55.He's the Chief Executive of advisory boutique,

:02:56. > :03:04.Good morning. As clear as mud as ever in terms of what they are

:03:05. > :03:09.deciding, Opec members, non-OPEC members, but all eyes on Istanbul at

:03:10. > :03:15.the moment for sure? That's right. There is in fairness to the rallying

:03:16. > :03:20.markets some encouraging and positive rhetoric coming out of

:03:21. > :03:25.Istanbul as we've rightly touched on both the warm noises from the Opec

:03:26. > :03:32.Secretary-General around co-ordination within Opec and from

:03:33. > :03:35.Russia's Vladimir Putin. The next month is going to be very

:03:36. > :03:40.interesting in terms of the detail that will need to sit behind that to

:03:41. > :03:43.make it robust. Do you think we will see agreement in Vienna? It is one

:03:44. > :03:47.thing saying positive noises to the press and pushing up the price that

:03:48. > :03:55.way, but it is another thing working it out in practise, who will bear

:03:56. > :03:59.the brunt of the oil production? That's the huge question for next

:04:00. > :04:05.month. In my view, the markets are rallying strongly on a fact pattern

:04:06. > :04:10.that historically hasn't always gone through to delivery. I think Opec

:04:11. > :04:13.has the carrot, but not always the sticks it needs to enforce within

:04:14. > :04:19.its membership and I think they have got a tough month ahead. If they do

:04:20. > :04:22.agree and are able to woo Iran and keep Saudi Arabia happy and all the

:04:23. > :04:26.other members happy, Iraq, for example, what will it mean for oil

:04:27. > :04:29.prices if we are looking at a 700,000 barrel per day less

:04:30. > :04:35.outthere, to what extent will it boost the price do you think or has

:04:36. > :04:37.it been priced? Look, certainly the markets are starting to price that

:04:38. > :04:42.in. That 700,000 is significant. Part of the reason you see the

:04:43. > :04:46.volatility in markets is the balance between over and under supply, is

:04:47. > :04:51.very delicate at the moment. There is a lot of stored oil to be worked

:04:52. > :04:54.through, but that volume is certainly significant where it

:04:55. > :05:05.attained. Neil, thank you for joining us. In one answer, the price

:05:06. > :05:09.of oil by the end of the year? I'd $50 to $55. That's where we are now.

:05:10. > :05:16.The UK based airline Monarch says its received investment

:05:17. > :05:18.worth around $202 million from its majority shareholder,

:05:19. > :05:20.Reports suggested the firm was running dangerously short

:05:21. > :05:23.of cash which would have prevented it renewing operating licences

:05:24. > :05:27.Monarch has now renewed those ATOL licences for the next 12 months

:05:28. > :05:29.and says the money will also help fund future growth plans.

:05:30. > :05:33.The investment is the biggest in its 48 year history.

:05:34. > :05:37.Japan's parliament has passed an extra spending package worth

:05:38. > :05:41.$32 billion aimed at boosting the economy.

:05:42. > :05:44.It will be funded by bonds, adding to Japan's already heavy

:05:45. > :05:52.The money will be spent on infrastructure

:05:53. > :05:54.projects and will boost wages for day-care workers.

:05:55. > :05:57.The union representing workers at Hyundai Motor is set to resume

:05:58. > :06:00.talks with the management in a bid to end their dispute for higher pay.

:06:01. > :06:02.It follows months of industrial action including a nationwide

:06:03. > :06:07.The walk-outs have already cost the company $2.6 billion

:06:08. > :06:30.Samsung issued a profits warning. Our team in Asia will brief you on

:06:31. > :06:35.that in a second. Monarch managed to retain a licence

:06:36. > :06:39.as a deadline looms. This is key, isn't it for Monarch? This is the

:06:40. > :06:44.biggest investment in the airline's 48 year history. It was teetering on

:06:45. > :06:50.the brink of losing the licences, not having enough cash in reserve,

:06:51. > :06:53.all part of it's Atol operating licence which means they should have

:06:54. > :06:56.cash in reserve, but they didn't have. Now a big investment to secure

:06:57. > :07:19.the future for now, for the airline. Samsung said they would halt

:07:20. > :07:28.production of the Note 7 device. Samsung has slashed its

:07:29. > :07:30.third-quarter profit forecasts - in the wake of the exploding phones

:07:31. > :07:39.saga. Don't forget all this is happening

:07:40. > :07:43.in right ahead of the holiday season which traditionally would give them

:07:44. > :07:49.the most sales. So now they are cutting third quarter operating

:07:50. > :07:53.profits. Previously it was closer to 7 billion. It cut its revenue

:07:54. > :07:59.estimates for the quarterer by just under $2 billion. All of this, of

:08:00. > :08:03.course, is a shorter term worry. It answers the shorter term questions

:08:04. > :08:08.we have with Samsung, but it doesn't really answer the longer term

:08:09. > :08:12.questions we have, the issues to do with the devices catching fire, are

:08:13. > :08:17.those going to affect other models? If it has got to do with its

:08:18. > :08:26.technology rather than the battery? It raises questions about what this

:08:27. > :08:32.does to Samsung Electronic's reputation. At Samsung group, you

:08:33. > :08:36.have issues with the leadership. The chairman is very ill. He is not

:08:37. > :08:41.likely to come back to the Samsung Group. His son is going to take

:08:42. > :08:50.over. Nobody knows whether he is fit to lead and this will raise

:08:51. > :08:56.questions about how its companies are run.

:08:57. > :08:58.It is a really interesting network for the big organisations

:08:59. > :09:04.particularly in that part of the world. Christine for now, thank you

:09:05. > :09:10.very much. A quick look at how the numbers

:09:11. > :09:14.finished in ash yasmt Europe in the spotlight today after London's

:09:15. > :09:27.footsie 100 hit a record high yesterday.

:09:28. > :09:38.It is up 16% so par over the course of the year.

:09:39. > :09:47.Let's hear from Michelle. Minutes from the latest meeting of the

:09:48. > :09:52.federal verve's committee are published. Global markets are on

:09:53. > :09:56.tenterhooks waiting for the next interest rise here in the United

:09:57. > :10:00.States. For much of the year the committee, led by Fed chair, Janet

:10:01. > :10:05.Yellen has been in favour of keeping rates on hold. But now, more and

:10:06. > :10:10.more of the so-called hawks, those who favour tighter monetary policy,

:10:11. > :10:16.insist that now is the time for a rate hike. Three of the ten

:10:17. > :10:21.committee members voted to rise. Investors want to find out more

:10:22. > :10:24.about their arguments and why the hawks haven't prevailed yet. For now

:10:25. > :10:33.just about everyone thinks they will get their way come December.

:10:34. > :10:40.We are joined by Richard Fletcher. The Fed minutes are out today,

:10:41. > :10:44.discussing Janet Yellen etcetera. Just for those watching who don't

:10:45. > :10:49.know what a hawk is, explain. Hawk and dove. It is to describe those

:10:50. > :10:53.people who are hawkish about inflation, ie they're more likely to

:10:54. > :10:57.raise interest rates than those who aren't and therefore are less likely

:10:58. > :11:00.to raise rates. You talk about hawks, ie, and you talk about doves

:11:01. > :11:04.on the committees that set rates for central banks. And in terms of what

:11:05. > :11:08.your thoughts are about the minutes and what they might tell us? The

:11:09. > :11:13.markets got quite excited. They're very much betting on a December rate

:11:14. > :11:16.rise, 75% chance, but we have been here before. I sat here and said

:11:17. > :11:21.that everyone is betting the Fed is going to raise rates and then they

:11:22. > :11:25.haven't. So we had some good economic news last week out of the

:11:26. > :11:31.US. We had some consumer confidence data. We had retail sales and that

:11:32. > :11:32.was all good which that does suggest there might be a rate rise in

:11:33. > :11:36.December. We have a meeting in December. We have a meeting in

:11:37. > :11:40.November, but that's a week before the US Presidential elections so the

:11:41. > :11:44.market seems to have ruled that out. Let's talk about the pound. The weak

:11:45. > :11:53.pound pushing the FTSE very close, just shy of the all-time high, 7129,

:11:54. > :11:57.we are looking at 7069 this morning. We have seen movements in the pound

:11:58. > :12:02.that we don't normally see. The pound lost 4.9% over the previous

:12:03. > :12:06.full trading sessions and in overnight Asia we saw a 1.5% bounce

:12:07. > :12:10.and that's the largest rise in three months, but it is at very low levels

:12:11. > :12:14.and that appears to be running out of steam a little bit as we move

:12:15. > :12:19.into London trading. Richard, thank you very much. We

:12:20. > :12:27.will get Richard's take on smelly sneakers later!

:12:28. > :12:31.We will meet the firm that wants to dress you and style you all without

:12:32. > :12:43.ever having to leave your house! Will it work? Stay tuned. You're

:12:44. > :12:46.with Business Live from BBC News. Monarch secured their ATOL licence

:12:47. > :12:49.for another year. Theo Leggett is in our

:12:50. > :12:55.Business Newsroom. It secures their future in the

:12:56. > :13:00.short-term? Absolutely. What this does really is under pins confidence

:13:01. > :13:04.that Monarch has the financial where with all to keep operating. When it

:13:05. > :13:07.was clear it was struggling to renew its ATOL licence that left

:13:08. > :13:10.passengers worried that they might not able to get to their

:13:11. > :13:15.destinations and their flights might be cancelled and there was a cloud

:13:16. > :13:18.hanging over the airline's future. You don't get an ATOL licence

:13:19. > :13:22.without having a strong financial bulwark behind you. That's what this

:13:23. > :13:29.injection gives. To put it in prospective. This is $165 million.

:13:30. > :13:32.When the owner of Monarch bought its majority stake, it paid ?125

:13:33. > :13:38.million, it is a significant cash injection. Critical they got this

:13:39. > :13:42.licence at this time. We've interviewed the boss of Monarch. He

:13:43. > :13:45.has been Business Live. The outlook for this company, flying low or

:13:46. > :13:50.still turbulence ahead? They have money. They have reserves, but it is

:13:51. > :13:55.a difficult environment. This is a holiday-focussed airline and many of

:13:56. > :14:00.the destinations it has been flying to Tunisia, Turkey and Egypt, there

:14:01. > :14:06.have been security problems so passengers don't want to fly there.

:14:07. > :14:11.They can fly to other routes, but there is competition. Consumers have

:14:12. > :14:15.seen there were financial issues relate to go this airline. There is

:14:16. > :14:19.the price of airline fuel and the value of the pound. Airline fuel is

:14:20. > :14:22.priced in dollars, the value of the pound has gone down, that means its

:14:23. > :14:26.fuel bill has gone up. Of courts, when you have a low pound as well,

:14:27. > :14:29.people see holidays abroad becoming more expensive, they are less likely

:14:30. > :14:33.to book. So there are real clouds on the horizon. Yes, they're taking off

:14:34. > :14:38.again. Yes, they've got the, they can stay in the air for the moment,

:14:39. > :14:42.but the future is pretty unclear. A quick question, we are talking about

:14:43. > :14:47.whether people would buy second-hand train sners Absolutely not. Have you

:14:48. > :14:51.smelt mine? Theo, thank you very much. I

:14:52. > :15:01.wouldn't buy Theo's. You'd have to pay me!

:15:02. > :15:06.The maker of Oxo have given a trading update. Trading sales fell

:15:07. > :15:10.by 4.5%, we were not making gravery in the month of September because it

:15:11. > :15:14.was unusually warm. Perhaps more barbecues than Sunday roasts!

:15:15. > :15:19.Ministers from oil-producing nations are meeting to try to hammer out

:15:20. > :15:23.details of a deal to cut production of crude.

:15:24. > :15:30.Prices have rallied in anticipation of such a cut, but further price

:15:31. > :15:40.increases hinge on producers agreeing coordinated action.

:15:41. > :15:46.The FTSE 100 doing well off the weaker pound, although the pound has

:15:47. > :15:48.risen in overnight trade. Buying clothes can be

:15:49. > :15:50.a pleasure for some, Especially if you take your kids

:15:51. > :15:58.with the! If you fall into the latter

:15:59. > :16:00.category, schlepping around the shops, traipsing back and forth

:16:01. > :16:03.to the changing rooms, constantly seeking the right size

:16:04. > :16:05.can be a genuine pain. But technology is coming

:16:06. > :16:07.to the rescue, courtesy Metail allows you to build a virtual

:16:08. > :16:11.model of yourself and try the clothes on in the digital world

:16:12. > :16:15.before buying them. Set up in 2008, it now has more

:16:16. > :16:19.than 3.5 million users Although it's a British company,

:16:20. > :16:23.most of its customer growth has been in Asia,

:16:24. > :16:26.with 79% of revenue coming It's not just the customers

:16:27. > :16:31.who like it. Metail say their programme lifts

:16:32. > :16:35.sales for retailers by 22% And with a 20% year-on-year growth,

:16:36. > :16:55.it's forecast strong future growth. We have got the boss here. Thank you

:16:56. > :16:59.for coming in. I had not heard about your company before meeting due

:17:00. > :17:04.today, but when I read about what you do, I thought, perfect, because

:17:05. > :17:07.I buy something online and it has to go back, and it must be an item

:17:08. > :17:14.level retailers, dealing with the returns. Yes, it is a big problem.

:17:15. > :17:19.It is not just for the retailers, but also for users, there is a lack

:17:20. > :17:23.of confidence to buy online, when we live in a fast-paced economy where

:17:24. > :17:27.people want convenience and they want things quick and fast. It is

:17:28. > :17:33.the blending of physical stores on the high Street, we want the

:17:34. > :17:38.convenience of online, but the reassurance of knowing it fits. We

:17:39. > :17:44.want to be the best way in which a consumer can discover, share, shop

:17:45. > :17:50.and wear fashion, by digitising the world's clothes and people. You take

:17:51. > :17:55.pictures of them, you measure them? For the user it is about making the

:17:56. > :17:58.process as quick as possible, so entering a few basic measurements to

:17:59. > :18:05.create a 3-D version of yourself to try clothes on and see how they fit.

:18:06. > :18:12.On the retail side, we built a fast and quick photo rigour to enable us

:18:13. > :18:18.to shoot garments in 3-D three times cheaper than Amazon does in 2-D. It

:18:19. > :18:22.is about doing it quickly and building a dataset on the size and

:18:23. > :18:30.shape of people that can improve the efficiency of the supply chain. Are

:18:31. > :18:32.you both selling clothes on your own website but also selling the

:18:33. > :18:37.technology to other clothing retailers? Now we are a plug-in

:18:38. > :18:43.service for retailers, we are about helping them with making the

:18:44. > :18:47.shopping experience more fun and more efficient. But ultimately we

:18:48. > :18:54.want the model to be used in any type of engagement with fashion, be

:18:55. > :18:58.that trying on a dress in a magazine, sharing the outfit you

:18:59. > :19:04.might wear for next week's party with your friends, so you don't end

:19:05. > :19:09.up clashing, and you go into the store, the changing room queue is

:19:10. > :19:13.long, you can try on the garment there and then. And you are offering

:19:14. > :19:18.some of this information about body shapes and sizes and the changes to

:19:19. > :19:23.the retailers, so they start making better fitting clothes? Yes, our big

:19:24. > :19:29.partner in India starting to use our dataset to understand and change the

:19:30. > :19:32.shape of clothing for the different democratics, so you have ten

:19:33. > :19:36.different shapes of people, and they want to make those clothes did the

:19:37. > :19:41.different demographics. One retailer, only 22% of their customer

:19:42. > :19:46.base matched the way in which the clothes were cut, and by changing

:19:47. > :19:50.the fit and shape, they could do a much better job and therefore

:19:51. > :19:53.increased the confidence of their consumers and make a better

:19:54. > :19:57.experience all round. You have been involved in all sorts of different

:19:58. > :20:01.companies, what is next, once you have conquered this round?

:20:02. > :20:08.Fundamentally I started this business to solve a problem for my

:20:09. > :20:13.partner back then, wife now, she hated the whole experience of buying

:20:14. > :20:19.clothing in-store and online, and we had to travel to Vietnam for her to

:20:20. > :20:23.get the perfect dress in the shape that she wanted. I will be finished

:20:24. > :20:28.with this problem when I have made her happy! We talk about this

:20:29. > :20:34.looking nice, user-friendly, but there is a load of science behind

:20:35. > :20:39.it. 13 Ph.D. Is in the team, we are working with machine learning,

:20:40. > :20:46.artificial intelligence and robotics in the photography section. Would

:20:47. > :20:52.you wear second-hand sneakers? These ones are box fresh.

:20:53. > :21:02.The reason we are talking about it is... Would you buy these? These are

:21:03. > :21:04.my second-hand trainers. These are mine! Check it out!

:21:05. > :21:07.We know the market for trainers, or sneakers, is big business.

:21:08. > :21:09.But did you know there's also a booming market for

:21:10. > :21:22.And in New York, where else, one entrepreneur has opened a shop

:21:23. > :21:26.And it's so successful, it's about to open a second shop.

:21:27. > :21:32.Part of being fly and looking the best is topping off your outfit

:21:33. > :21:38.I wanted to be the coolest, I had to have the best outfits.

:21:39. > :21:46.My father would buy my sneakers and my mum would buy my clothes.

:21:47. > :21:48.I have every sneaker now, I am known for having

:21:49. > :21:56.He was taking advantage a bit, he had the audacity to ask for $50

:21:57. > :22:05.That is when I said, "When you give me my $50 back,

:22:06. > :22:11.That was the first real nucleus of us coming up

:22:12. > :22:24.The most expensive we have had, Air Max, they go for 10,000,

:22:25. > :22:34.We have had others that go for 30,000.

:22:35. > :22:37.Where do I go anywhere else in the world but do something better

:22:38. > :22:42.than wake up with my son, go to sleep with my son,

:22:43. > :23:00.Richard is back. I would not buy that!

:23:01. > :23:05.Open to offers. They are size 12.

:23:06. > :23:09.You are reducing your market already! I would not buy them

:23:10. > :23:15.second-hand, but I wish my kids would, given how much they spend on

:23:16. > :23:21.them. They are not quite at those levels! But they are quite

:23:22. > :23:27.expensive. You have centres loads of tweets. Troy is based in Seattle, in

:23:28. > :23:33.the Fox News room, he did a straw poll of those, 4-1 say no.

:23:34. > :23:37.Another suggestion, it depends where they have been. Clearly you want

:23:38. > :23:45.information about where they have been. Some suggestions, Tom says it

:23:46. > :23:48.is because it all depends on whether they are limited edition and you

:23:49. > :23:50.miss them when they were first issued.

:23:51. > :23:57.I guess yours are not. They are not.

:23:58. > :24:03.This is in the Times, Amazon has a fresh look at bricks and mortar.

:24:04. > :24:09.Amazon opened a book store as an experiment, and in New York, you can

:24:10. > :24:14.order your groceries, you do a click and collect, and you can also buy

:24:15. > :24:17.those products that you buy from your convenience store that we all

:24:18. > :24:25.use, your pint of milk, loaf of bread. This shift in shopping, we do

:24:26. > :24:29.one big shop online, then we top up at convenience stores throughout the

:24:30. > :24:33.week. The idea is that in New York at least Amazon will experiment with

:24:34. > :24:43.opening these click and collect, convenience stores. It marks a

:24:44. > :24:48.shift. It is about the convergence. We want the convenience of online,

:24:49. > :24:52.but we don't necessarily want to wait in, we want to try things on,

:24:53. > :24:57.and it is about blurring the boundaries. One of the surprises was

:24:58. > :25:00.the popularity of click and collect, they thought it would be a small

:25:01. > :25:05.part of their business, but consumers like it, because nobody

:25:06. > :25:10.wants to wait in. In Sweden companies are introducing a six hour

:25:11. > :25:14.working day. You would love that! It is on the basis that we waste 61% of

:25:15. > :25:22.our day at work. If you want something done, ask a busy person!

:25:23. > :25:27.Let shorten the day, stop wasting it, and the six hours includes a

:25:28. > :25:31.mandatory one hour lunch break. The picture in this article is an empty

:25:32. > :25:35.office, very trendy, with a big panda. That is spot if I's UK

:25:36. > :25:43.office. Nothing like ours. Nice to see you.

:25:44. > :26:09.Send us your offers for my trainers. See you soon, goodbye.

:26:10. > :26:16.The weather is stuck in a rut today, similar to the last few days. Any

:26:17. > :26:17.areas stayed right. Rather cloudy today, limited