12/10/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Oil prices creep higher as major producers meet


But can they agree on moves to prop up the price of crude?


Live from London, that's our top story on Wednesday, 12th October.


Oil prices have rallied in recent weeks.


But the continued revival relies on producers agreeing


We'll assess what's at stake and what it means for us.


We'll hear from New York about the boom in the market


And after the FTSE 100 hit a record intraday high


in yesterday's session, all eyes on the market that's up


Future fashion, we'll find out about the gizmo that lets you try


clothes before you buy through your online avatar.


We're talking about second-hand sneakers later - we want to know -


Sally and I have our trainers in the studio, it is not pleasant!


The price of oil is in the spotlight once again as ministers from oil


They'll be hoping to hammer out a deal to boost crude prices


Today's meeting follows the announcement last month


from Opec that the oil cartel would cut production


for the first time since 2008 - by around 700,000 barrels a day.


That left key questions - which countries would reduce


In other words how will Opec share the burden among its members?


And that's expected to be the focus of a lot of the debate at today's


World Energy Congress - ahead of Opec's next official


But nonetheless, despite a lack of clarity about Opec's actions,


oil prices have been bouncing back in recent weeks.


In fact, they're up around 15% since September.


Well, prices have also been boosted by President Putin of Russia


announcing that the country will also limit production,


He's the Chief Executive of advisory boutique,


Good morning. As clear as mud as ever in terms of what they are


deciding, Opec members, non-OPEC members, but all eyes on Istanbul at


the moment for sure? That's right. There is in fairness to the rallying


markets some encouraging and positive rhetoric coming out of


Istanbul as we've rightly touched on both the warm noises from the Opec


Secretary-General around co-ordination within Opec and from


Russia's Vladimir Putin. The next month is going to be very


interesting in terms of the detail that will need to sit behind that to


make it robust. Do you think we will see agreement in Vienna? It is one


thing saying positive noises to the press and pushing up the price that


way, but it is another thing working it out in practise, who will bear


the brunt of the oil production? That's the huge question for next


month. In my view, the markets are rallying strongly on a fact pattern


that historically hasn't always gone through to delivery. I think Opec


has the carrot, but not always the sticks it needs to enforce within


its membership and I think they have got a tough month ahead. If they do


agree and are able to woo Iran and keep Saudi Arabia happy and all the


other members happy, Iraq, for example, what will it mean for oil


prices if we are looking at a 700,000 barrel per day less


outthere, to what extent will it boost the price do you think or has


it been priced? Look, certainly the markets are starting to price that


in. That 700,000 is significant. Part of the reason you see the


volatility in markets is the balance between over and under supply, is


very delicate at the moment. There is a lot of stored oil to be worked


through, but that volume is certainly significant where it


attained. Neil, thank you for joining us. In one answer, the price


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


The UK based airline Monarch says its received investment


worth around $202 million from its majority shareholder,


Reports suggested the firm was running dangerously short


of cash which would have prevented it renewing operating licences


Monarch has now renewed those ATOL licences for the next 12 months


and says the money will also help fund future growth plans.


The investment is the biggest in its 48 year history.


Japan's parliament has passed an extra spending package worth


$32 billion aimed at boosting the economy.


It will be funded by bonds, adding to Japan's already heavy


The money will be spent on infrastructure


projects and will boost wages for day-care workers.


The union representing workers at Hyundai Motor is set to resume


talks with the management in a bid to end their dispute for higher pay.


It follows months of industrial action including a nationwide


The walk-outs have already cost the company $2.6 billion


Samsung issued a profits warning. Our team in Asia will brief you on


that in a second. Monarch managed to retain a licence


as a deadline looms. This is key, isn't it for Monarch? This is the


biggest investment in the airline's 48 year history. It was teetering on


the brink of losing the licences, not having enough cash in reserve,


all part of it's Atol operating licence which means they should have


cash in reserve, but they didn't have. Now a big investment to secure


the future for now, for the airline. Samsung said they would halt


production of the Note 7 device. Samsung has slashed its


third-quarter profit forecasts - in the wake of the exploding phones


saga. Don't forget all this is happening


in right ahead of the holiday season which traditionally would give them


the most sales. So now they are cutting third quarter operating


profits. Previously it was closer to 7 billion. It cut its revenue


estimates for the quarterer by just under $2 billion. All of this, of


course, is a shorter term worry. It answers the shorter term questions


we have with Samsung, but it doesn't really answer the longer term


questions we have, the issues to do with the devices catching fire, are


those going to affect other models? If it has got to do with its


technology rather than the battery? It raises questions about what this


does to Samsung Electronic's reputation. At Samsung group, you


have issues with the leadership. The chairman is very ill. He is not


likely to come back to the Samsung Group. His son is going to take


over. Nobody knows whether he is fit to lead and this will raise


questions about how its companies are run.


It is a really interesting network for the big organisations


particularly in that part of the world. Christine for now, thank you


very much. A quick look at how the numbers


finished in ash yasmt Europe in the spotlight today after London's


footsie 100 hit a record high yesterday.


It is up 16% so par over the course of the year.


Let's hear from Michelle. Minutes from the latest meeting of the


federal verve's committee are published. Global markets are on


tenterhooks waiting for the next interest rise here in the United


States. For much of the year the committee, led by Fed chair, Janet


Yellen has been in favour of keeping rates on hold. But now, more and


more of the so-called hawks, those who favour tighter monetary policy,


insist that now is the time for a rate hike. Three of the ten


committee members voted to rise. Investors want to find out more


about their arguments and why the hawks haven't prevailed yet. For now


just about everyone thinks they will get their way come December.


We are joined by Richard Fletcher. The Fed minutes are out today,


discussing Janet Yellen etcetera. Just for those watching who don't


know what a hawk is, explain. Hawk and dove. It is to describe those


people who are hawkish about inflation, ie they're more likely to


raise interest rates than those who aren't and therefore are less likely


to raise rates. You talk about hawks, ie, and you talk about doves


on the committees that set rates for central banks. And in terms of what


your thoughts are about the minutes and what they might tell us? The


markets got quite excited. They're very much betting on a December rate


rise, 75% chance, but we have been here before. I sat here and said


that everyone is betting the Fed is going to raise rates and then they


haven't. So we had some good economic news last week out of the


US. We had some consumer confidence data. We had retail sales and that


was all good which that does suggest there might be a rate rise in


December. We have a meeting in December. We have a meeting in


November, but that's a week before the US Presidential elections so the


market seems to have ruled that out. Let's talk about the pound. The weak


pound pushing the FTSE very close, just shy of the all-time high, 7129,


we are looking at 7069 this morning. We have seen movements in the pound


that we don't normally see. The pound lost 4.9% over the previous


full trading sessions and in overnight Asia we saw a 1.5% bounce


and that's the largest rise in three months, but it is at very low levels


and that appears to be running out of steam a little bit as we move


into London trading. Richard, thank you very much. We


will get Richard's take on smelly sneakers later!


We will meet the firm that wants to dress you and style you all without


ever having to leave your house! Will it work? Stay tuned. You're


with Business Live from BBC News. Monarch secured their ATOL licence


for another year. Theo Leggett is in our


Business Newsroom. It secures their future in the


short-term? Absolutely. What this does really is under pins confidence


that Monarch has the financial where with all to keep operating. When it


was clear it was struggling to renew its ATOL licence that left


passengers worried that they might not able to get to their


destinations and their flights might be cancelled and there was a cloud


hanging over the airline's future. You don't get an ATOL licence


without having a strong financial bulwark behind you. That's what this


injection gives. To put it in prospective. This is $165 million.


When the owner of Monarch bought its majority stake, it paid ?125


million, it is a significant cash injection. Critical they got this


licence at this time. We've interviewed the boss of Monarch. He


has been Business Live. The outlook for this company, flying low or


still turbulence ahead? They have money. They have reserves, but it is


a difficult environment. This is a holiday-focussed airline and many of


the destinations it has been flying to Tunisia, Turkey and Egypt, there


have been security problems so passengers don't want to fly there.


They can fly to other routes, but there is competition. Consumers have


seen there were financial issues relate to go this airline. There is


the price of airline fuel and the value of the pound. Airline fuel is


priced in dollars, the value of the pound has gone down, that means its


fuel bill has gone up. Of courts, when you have a low pound as well,


people see holidays abroad becoming more expensive, they are less likely


to book. So there are real clouds on the horizon. Yes, they're taking off


again. Yes, they've got the, they can stay in the air for the moment,


but the future is pretty unclear. A quick question, we are talking about


whether people would buy second-hand train sners Absolutely not. Have you


smelt mine? Theo, thank you very much. I


wouldn't buy Theo's. You'd have to pay me!


The maker of Oxo have given a trading update. Trading sales fell


by 4.5%, we were not making gravery in the month of September because it


was unusually warm. Perhaps more barbecues than Sunday roasts!


Ministers from oil-producing nations are meeting to try to hammer out


details of a deal to cut production of crude.


Prices have rallied in anticipation of such a cut, but further price


increases hinge on producers agreeing coordinated action.


The FTSE 100 doing well off the weaker pound, although the pound has


risen in overnight trade. Buying clothes can be


a pleasure for some, Especially if you take your kids


with the! If you fall into the latter


category, schlepping around the shops, traipsing back and forth


to the changing rooms, constantly seeking the right size


can be a genuine pain. But technology is coming


to the rescue, courtesy Metail allows you to build a virtual


model of yourself and try the clothes on in the digital world


before buying them. Set up in 2008, it now has more


than 3.5 million users Although it's a British company,


most of its customer growth has been in Asia,


with 79% of revenue coming It's not just the customers


who like it. Metail say their programme lifts


sales for retailers by 22% And with a 20% year-on-year growth,


it's forecast strong future growth. We have got the boss here. Thank you


for coming in. I had not heard about your company before meeting due


today, but when I read about what you do, I thought, perfect, because


I buy something online and it has to go back, and it must be an item


level retailers, dealing with the returns. Yes, it is a big problem.


It is not just for the retailers, but also for users, there is a lack


of confidence to buy online, when we live in a fast-paced economy where


people want convenience and they want things quick and fast. It is


the blending of physical stores on the high Street, we want the


convenience of online, but the reassurance of knowing it fits. We


want to be the best way in which a consumer can discover, share, shop


and wear fashion, by digitising the world's clothes and people. You take


pictures of them, you measure them? For the user it is about making the


process as quick as possible, so entering a few basic measurements to


create a 3-D version of yourself to try clothes on and see how they fit.


On the retail side, we built a fast and quick photo rigour to enable us


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


is about doing it quickly and building a dataset on the size and


shape of people that can improve the efficiency of the supply chain. Are


you both selling clothes on your own website but also selling the


technology to other clothing retailers? Now we are a plug-in


service for retailers, we are about helping them with making the


shopping experience more fun and more efficient. But ultimately we


want the model to be used in any type of engagement with fashion, be


that trying on a dress in a magazine, sharing the outfit you


might wear for next week's party with your friends, so you don't end


up clashing, and you go into the store, the changing room queue is


long, you can try on the garment there and then. And you are offering


some of this information about body shapes and sizes and the changes to


the retailers, so they start making better fitting clothes? Yes, our big


partner in India starting to use our dataset to understand and change the


shape of clothing for the different democratics, so you have ten


different shapes of people, and they want to make those clothes did the


different demographics. One retailer, only 22% of their customer


base matched the way in which the clothes were cut, and by changing


the fit and shape, they could do a much better job and therefore


increased the confidence of their consumers and make a better


experience all round. You have been involved in all sorts of different


companies, what is next, once you have conquered this round?


Fundamentally I started this business to solve a problem for my


partner back then, wife now, she hated the whole experience of buying


clothing in-store and online, and we had to travel to Vietnam for her to


get the perfect dress in the shape that she wanted. I will be finished


with this problem when I have made her happy! We talk about this


looking nice, user-friendly, but there is a load of science behind


it. 13 Ph.D. Is in the team, we are working with machine learning,


artificial intelligence and robotics in the photography section. Would


you wear second-hand sneakers? These ones are box fresh.


The reason we are talking about it is... Would you buy these? These are


my second-hand trainers. These are mine! Check it out!


We know the market for trainers, or sneakers, is big business.


But did you know there's also a booming market for


And in New York, where else, one entrepreneur has opened a shop


And it's so successful, it's about to open a second shop.


Part of being fly and looking the best is topping off your outfit


I wanted to be the coolest, I had to have the best outfits.


My father would buy my sneakers and my mum would buy my clothes.


I have every sneaker now, I am known for having


He was taking advantage a bit, he had the audacity to ask for $50


That is when I said, "When you give me my $50 back,


That was the first real nucleus of us coming up


The most expensive we have had, Air Max, they go for 10,000,


We have had others that go for 30,000.


Where do I go anywhere else in the world but do something better


than wake up with my son, go to sleep with my son,


Richard is back. I would not buy that!


Open to offers. They are size 12.


You are reducing your market already! I would not buy them


second-hand, but I wish my kids would, given how much they spend on


them. They are not quite at those levels! But they are quite


expensive. You have centres loads of tweets. Troy is based in Seattle, in


the Fox News room, he did a straw poll of those, 4-1 say no.


Another suggestion, it depends where they have been. Clearly you want


information about where they have been. Some suggestions, Tom says it


is because it all depends on whether they are limited edition and you


miss them when they were first issued.


I guess yours are not. They are not.


This is in the Times, Amazon has a fresh look at bricks and mortar.


Amazon opened a book store as an experiment, and in New York, you can


order your groceries, you do a click and collect, and you can also buy


those products that you buy from your convenience store that we all


use, your pint of milk, loaf of bread. This shift in shopping, we do


one big shop online, then we top up at convenience stores throughout the


week. The idea is that in New York at least Amazon will experiment with


opening these click and collect, convenience stores. It marks a


shift. It is about the convergence. We want the convenience of online,


but we don't necessarily want to wait in, we want to try things on,


and it is about blurring the boundaries. One of the surprises was


the popularity of click and collect, they thought it would be a small


part of their business, but consumers like it, because nobody


wants to wait in. In Sweden companies are introducing a six hour


working day. You would love that! It is on the basis that we waste 61% of


our day at work. If you want something done, ask a busy person!


Let shorten the day, stop wasting it, and the six hours includes a


mandatory one hour lunch break. The picture in this article is an empty


office, very trendy, with a big panda. That is spot if I's UK


office. Nothing like ours. Nice to see you.


Send us your offers for my trainers. See you soon, goodbye.


The weather is stuck in a rut today, similar to the last few days. Any


areas stayed right. Rather cloudy today, limited


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