14/10/2016

Download Subtitles

Transcript

:00:12. > :00:13.This is Business Live from BBC News, with Aaron Heslehurst

:00:14. > :00:16.The world's fastest growing greenhouse gases are set to be

:00:17. > :00:18.banned at an international conference in Kigali.

:00:19. > :00:21.Live from London, that's our top story on Friday the 14th

:00:22. > :00:41.HFCs are vital to air conditioning and refrigeration.

:00:42. > :00:44.But as the deal is closed, can developing economies like India

:00:45. > :00:46.delay the restrictions to grow their economies?

:00:47. > :00:48.Also in the programme, burning a hole in their pocket -

:00:49. > :00:51.Samsung says it expects the Note seven write-off to cost it

:00:52. > :01:06.The total cost for Samsung, 5.3 billion.

:01:07. > :01:10.We'll have our very own Rory Cellan-Jones on set,

:01:11. > :01:12.talking us through exploding smartphones and the wack

:01:13. > :01:23.Plus, flying doctors - but not as you know them.

:01:24. > :01:25.The world's first commercial regular drone delivery service is beginning

:01:26. > :01:29.The blood they carry will cut the waiting times in hospitals

:01:30. > :01:33.Today we want to know what else would you have drones deliver?

:01:34. > :01:45.Tweet us using the hashtag #bbcbizlive.

:01:46. > :01:55.It is Friday, welcome to the programme. Let's take a look at the

:01:56. > :02:00.hydrofluorocarbons. They are gases that make a big impact on global

:02:01. > :02:08.warming but a meeting of more than 150 countries in Rwanda -- Uganda's

:02:09. > :02:13.capital Kigali is expected to announce a ban on them. They are

:02:14. > :02:21.widely used in refrigeration, air conditioning, aerosols. If their use

:02:22. > :02:24.isn't reduced, HFCs could end up causing 20% of emissions which

:02:25. > :02:29.Increasing demand for refrigeration Increasing demand for refrigeration

:02:30. > :02:38.and global warming in economies like India have seen the use of HFCs up

:02:39. > :02:43.by some 10-15%. It is thought that it could make a 0.5 difference to

:02:44. > :02:49.global warming, which would certainly be a sizeable

:02:50. > :02:55.contribution. Let's speak to our environment correspondent. 150

:02:56. > :03:03.countries, that is a lot to get them to agree on something. Is it really

:03:04. > :03:06.likely to happen? It is likely to happen but maybe not today. There

:03:07. > :03:11.are quite a few differences between the countries. Everyone is agreed on

:03:12. > :03:16.the printable, the removal of HFCs or the phasing out of them over the

:03:17. > :03:19.next 20 years or so. The exact date, that is when the tough negotiations

:03:20. > :03:23.are beginning and that is a question of India and some countries against

:03:24. > :03:27.the United States and Europe and some African countries. The US wants

:03:28. > :03:32.an early date, they want to get rid of these as soon as possible. The

:03:33. > :03:36.European Union wants to reduce them by 40% by 2018. On the other hand,

:03:37. > :03:41.India want to keep these gases going and the Gulf state, which have very

:03:42. > :03:45.high temperatures, they say they have no faith in the replacement one

:03:46. > :03:49.so far. There's a lot of hard talking to be done here and they are

:03:50. > :03:55.likely to get a deal. It will be some sort of compromise. It will be

:03:56. > :04:00.a good fund to help the countries like India to adapt. Secretary of

:04:01. > :04:07.State John Kerry is here and it's likely leave going to help forge

:04:08. > :04:12.that later today. -- help forge that deal.

:04:13. > :04:14.Julian Newman is the campaigns director at the Environmental

:04:15. > :04:24.Welcome to the programme. These emissions are dwarfed by global

:04:25. > :04:33.emissions of CO2, so why are we so worried about them? It's probably

:04:34. > :04:37.the most cost efficient strategy available to us. If we take action,

:04:38. > :04:41.we can avoid half a degree of global warming and it can be done, so the

:04:42. > :04:56.alternatives are there. First we were cracking down on CFCs, then

:04:57. > :05:02.HCFCs, now HFCs. Natural refrigerants are a perfect

:05:03. > :05:07.substitute for HFCs, they are growing in number and they are

:05:08. > :05:11.available. We need to transition away from HFCs to more natural

:05:12. > :05:17.chemicals which are more benign to the environment but still gives the

:05:18. > :05:22.cooling that we need. And getting more developing economies to use

:05:23. > :05:31.those. You can only imagine that people are going to be buying

:05:32. > :05:40.machines with them. The key is to help countries transition away from

:05:41. > :05:47.those options. The system is there, it works. We need to apply that

:05:48. > :05:52.thinking and logic to the climate change issue now. You need some

:05:53. > :05:56.serious injuries and is to get countries like India on-board camera

:05:57. > :05:59.is a bit of money going to be enough? I think ultimately this is a

:06:00. > :06:05.phase down where going to talk about, it's not like it's going to

:06:06. > :06:14.happen overnight. The time to do it is now otherwise they will go down a

:06:15. > :06:17.technological cul-de-sac where these are not allowed any more. They have

:06:18. > :06:22.to be backed up with financial assistance. Do you believe this is

:06:23. > :06:27.what is going to happen, they will be banned? I believe a deal will be

:06:28. > :06:30.worked out. Some countries want it to take longer but I'm confident

:06:31. > :06:36.there will be a deal today in Kigali. We're really hopeful it will

:06:37. > :06:42.take place in the next day or so. Thanks very much, have a good

:06:43. > :06:43.weekend. Let's touch on some of the other stories making the headlines

:06:44. > :06:46.around the world. HP Incorporated, the hardware

:06:47. > :06:48.business of former tech giant Hewlett-Packard,

:06:49. > :06:50.is cutting between 3000 and 4000 Hewlett Packard was split up

:06:51. > :06:54.into two parts - effectively the profitable, growth part,

:06:55. > :06:57.which is the cloud computing side, and the struggling part

:06:58. > :06:59.of the business, PCs and printers. Shares are down 1.3%

:07:00. > :07:12.in extended trading. The US telecoms firm Verizon says

:07:13. > :07:15.Yahoo's massive data breach could have a material impact

:07:16. > :07:17.on its deal to buy the firm. Back in July it agreed to buy

:07:18. > :07:21.the biggest parts of the business Since then, Yahoo revealed

:07:22. > :07:24.that hackers stole data Many wondering whether Verizon might

:07:25. > :07:28.look to reduce the price or even It's not a day if we don't mention

:07:29. > :07:44.Samsung! Samsung expects further blows

:07:45. > :07:48.to its profits from the withdrawal of the Note 7 phone,

:07:49. > :07:50.saying revenue will be affected The tech giant had already revised

:07:51. > :07:54.down its third quarter On Friday, it said it expected

:07:55. > :08:14.an additional negative impact Debts on top, that is the total, 5.3

:08:15. > :08:20.billion. That's what they're saying. Steve, good to see you. It's a chunk

:08:21. > :08:25.of change, but it ain't going to kill off Samsung's smartphone

:08:26. > :08:31.business, is it? No, it's about 10% of annual profits. It is a dent,

:08:32. > :08:33.certainly. The big question will be whether the brand is damaged beyond

:08:34. > :08:37.the current quantifiable costs. The the current quantifiable costs. The

:08:38. > :08:42.first quarter costs are just the cost of getting the recall, paying

:08:43. > :08:46.back the customers, two and a half million customers who bought the

:08:47. > :08:51.thing, they want their money back. And then the second tranche of cost

:08:52. > :08:56.is the foregone sales. Samsung reckons it would have sold something

:08:57. > :09:03.like 15,000,000-17,000,000 of the devices and those sales are

:09:04. > :09:09.foregone. Some of those make Samsung products but others will go to

:09:10. > :09:12.Apple. The unknowable is the cost to the brand and that will be longer

:09:13. > :09:15.term and that will be the crucial one. Thanks for the update, much

:09:16. > :09:28.appreciated. Guess who makes the chips for the

:09:29. > :09:30.Apoel phones? Samsung! -- for the Apple phones.

:09:31. > :09:33.Asian stocks and the dollar bounced on Friday, erasing some losses

:09:34. > :09:34.from the previous day, because we saw some

:09:35. > :09:36.stronger-than-expected Chinese inflation numbers eased some

:09:37. > :09:38.concerns about the health of the world's second-biggest economy.

:09:39. > :09:40.Remember yesterday we saw weak export numbers from China -

:09:41. > :09:45.But this price increase, the higher inflation in China

:09:46. > :09:48.will be good news for profits and for Beijing as the government

:09:49. > :09:51.struggles to reduce a mountain of corporate debt.

:09:52. > :09:55.Not a lot driving the London and European markets.

:09:56. > :09:58.We are keeping an eye on a bit of a sell-off in basic resources

:09:59. > :10:00.stocks because metal prices fell following poor that weaker

:10:01. > :10:06.And Michelle Fleury has the details about what's ahead

:10:07. > :10:18.American banks are under the microscope this Friday, less than 48

:10:19. > :10:26.hours after replacing John stumped as chief executive of Wells Fargo,

:10:27. > :10:31.Tim Sloan will have to face investigations... Low interest rates

:10:32. > :10:35.are generally making it harder for banks to make money and that is

:10:36. > :10:43.likely to be reflected in the latest quarterly results from JP Morgan

:10:44. > :10:52.Chase and Citigroup. JP Morgan is expected to report a decline in

:10:53. > :10:56.third quarter earnings. On the economic front, September's retail

:10:57. > :10:57.sales figures should offer a glimpse into how American consumers are

:10:58. > :10:58.faring. Tom Stevenson is investment director

:10:59. > :11:08.at Fidelity International. He joins us now in the studio. Good

:11:09. > :11:12.morning. Let's start with the pound, it's hardly been out of the news

:11:13. > :11:17.this week, the British pound. What is going on and do you think it can

:11:18. > :11:24.go any lower? That is the consensus trade at the moment, that the pound

:11:25. > :11:29.is going to go lower. Expectations are that it could fall as lower as

:11:30. > :11:36.$1 15. 30 years ago we were down as low as $1 05 to the pound. I think

:11:37. > :11:41.differently, I think for various reasons the pound has probably

:11:42. > :11:48.fallen far enough. 20 years ago it was worth $1.71. If you look at

:11:49. > :11:52.Falls in the pound since the Second World War, there have been many that

:11:53. > :11:57.they tend to end after about 30%. It feels as though this one may have

:11:58. > :12:00.run its course. But the landscape has completely changed. It's

:12:01. > :12:03.difficult to look at historical data and try to apply it to the future,

:12:04. > :12:13.given that we have this huge cloud of uncertainty over Brexit. Well, we

:12:14. > :12:16.haven't always been in the EU. I'm angry at this because it's not

:12:17. > :12:21.justified. The economic numbers are still pretty solid for the UK? They

:12:22. > :12:24.are pretty solid and if you look at the purchasing power of the pound,

:12:25. > :12:29.if you compare it with the dollar on a purchasing parity basis, some

:12:30. > :12:36.people say it's about 15% oversold so it is actually cheap against the

:12:37. > :12:44.dollar. You pick the paper stories today, didn't you? I did, hope you

:12:45. > :12:49.like them! Still to come, we look at this week's biggest tech stories.

:12:50. > :12:51.We'll be talking virtual reality and have more on Samsung's

:12:52. > :12:53.smartphone woes in a few minutes' time.

:12:54. > :12:57.You're with Business Live from BBC News.

:12:58. > :13:01.Issues surrounding the supply of leading brands including Marmite

:13:02. > :13:05.The supermarket giant and the UK's largest food manufacturer, Unilever,

:13:06. > :13:07.had been locked in a battle over wholesale prices.

:13:08. > :13:09.But the BBC understands that Unilever has given some ground,

:13:10. > :13:22.A storm in a Pot Noodle! CHUCKLES

:13:23. > :13:25.Sean Farrington is at a shampoo factory in Bury, where they've seen

:13:26. > :13:33.an increase in the cost of raw materials.

:13:34. > :13:41.Yes, I'm here at this health and beauty factory near Bury in Greater

:13:42. > :13:45.Manchester, where Face in Nature are making bottles filled with shampoo.

:13:46. > :13:49.Here's a view stuck on the supply line at the minute. We're talking

:13:50. > :13:54.about the ingredients and the cost to the business of that. After the

:13:55. > :13:57.Tesco Unilever debate yesterday, how much of an effect does it make when

:13:58. > :14:03.the pound gets weaker and the costs go up? Here, 60% of being greedy and

:14:04. > :14:08.is in this bottle from the UK but a third are from abroad, so costs for

:14:09. > :14:12.that are going to go up as that pound gets weaker over the last few

:14:13. > :14:17.months. It's not just costs going up when the pound weakens, this company

:14:18. > :14:20.exports a lot, just got a deal with the United States. It means that

:14:21. > :14:23.exporting as a lucky easier for them because for people in America, the

:14:24. > :14:29.goods here are cheaper than they were before. When it comes down to

:14:30. > :14:32.prices, what is going to happen at the tills? Suppliers like these have

:14:33. > :14:37.to persuade supermarkets at some point to take on a bit more of those

:14:38. > :14:41.price rises if they can't take them on themselves. The supermarkets have

:14:42. > :14:44.to make the decision which we saw yesterday Tesco were reluctant to do

:14:45. > :14:48.about passing that cost on to consumers. We haven't seen much of

:14:49. > :14:49.that done at the moment but that could be coming in the coming

:14:50. > :14:58.months. Let's see what's going on on the

:14:59. > :15:03.life page. One of the stories that has been there all week is the

:15:04. > :15:07.pound, it is falling again after the president of the opinion Council,

:15:08. > :15:10.Donald Tusk, and the French finance minister, some of their comments,

:15:11. > :15:15.saying there is only a hard accident or no Brexit, as far as he is

:15:16. > :15:19.concerned -- the president of the European Council, Donald Tusk.

:15:20. > :15:24.A pharmacy company has talked to Radio 4's Today Programme saying

:15:25. > :15:28.they might have too reduced staff, cut services or close altogether if

:15:29. > :15:33.the Government goes ahead with planned cuts on payments to the

:15:34. > :15:35.agency, according to the chair of the Pharmacy Voice.

:15:36. > :15:39.An international deal to tackle global warming by phasing out

:15:40. > :15:42.the use of potent greenhouse gases is expected to be reached today.

:15:43. > :15:48.HFCs are a key component in fridges, air conditioners and aerosols.

:15:49. > :15:58.Even has spray! I don't use any has spray! HFC cars,

:15:59. > :16:03.what do they stand for? Hydrofluorocarbons. Good girl.

:16:04. > :16:12.We've had a potentially game changing product released from Sony

:16:13. > :16:17.that could make the world of virtual reality more accessible.

:16:18. > :16:19.And Samsung has had a rotten couple of days -

:16:20. > :16:22.and as we heard earlier in the programme they will see

:16:23. > :16:25.billions go up in flames over the exploding Galaxy Note 7 phone.

:16:26. > :16:28.Our tech guru Rory Cellan-Jones is here.

:16:29. > :16:39.Happy Friday, good to see you. I am always amazed, she is a very patient

:16:40. > :16:47.woman excavation before we came to, Rory said mention washing machines.

:16:48. > :16:52.That is all I will mention. Take it away. This is a huge blow to

:16:53. > :16:56.its mobile phone division. Samsung makes an awful lot more than mobile

:16:57. > :17:00.phones. That is the huge profit generator, but it is very proud of

:17:01. > :17:06.its consumer devices. It has a new washing machine where you can add an

:17:07. > :17:12.stuff at a late stage. My wife said to me the other day... You mean

:17:13. > :17:16.clothes? It has a little draw that you can add stuff into. My wife said

:17:17. > :17:21.to me the other day... I said to her, we had forgotten to put

:17:22. > :17:25.something in, I said, we can get one of those and she said, yes, but it

:17:26. > :17:32.might catch fire. It is a story about how the wider contagion can

:17:33. > :17:37.take place. The other thing we have had in recent weeks is people

:17:38. > :17:40.getting on an aircraft, the first thing the captain says is that if

:17:41. > :17:45.you have a Samsung phone, they don't even say a Samsung note seven, turn

:17:46. > :17:49.it off now. But causes damage to the brand. I have seen one major UK

:17:50. > :17:52.mobile operator this week sending out a poll to its customers asking

:17:53. > :17:57.them how they feel about Samsung products. That is the issue we had

:17:58. > :18:03.to deal with. I am sure they will deal with it. It is a question of

:18:04. > :18:08.how long memories are about this. But before we move on, the quirky

:18:09. > :18:15.thing about this is Steve Evans that we were talking to earlier, they

:18:16. > :18:19.will lose the sales of the note seven, that has gone, maybe people

:18:20. > :18:23.will not buy another Samsung product, maybe they will buy Apple

:18:24. > :18:31.microproducts, but who makes the chips for them? Samsung will still

:18:32. > :18:35.win. They make chips for Apple. Let's not underestimate... In the

:18:36. > :18:38.catalogue of corporate crises, Corbridge recalled, this is pretty

:18:39. > :18:46.big. Let's talk about Sony. -- in the

:18:47. > :18:50.catalogue of corporate crises, corporate recalls.

:18:51. > :18:57.We have a proper! This is what you get up to in your spare time! Sony

:18:58. > :19:02.has joined the virtual reality race with the PlayStation VR headset. I

:19:03. > :19:06.know it is kind of cool, but will people buy it? This is a big moment

:19:07. > :19:11.for virtual reality. In Las Vegas we have seen a lot of money going into

:19:12. > :19:27.it, lots of projections about what the industry might own. The first

:19:28. > :19:31.global player is getting involved. It has got a ready-made audience. We

:19:32. > :19:38.will now find out what the appetite for it is. It is fantastic, it is a

:19:39. > :19:41.very immersive experience. I was under water with sharks attacking me

:19:42. > :19:46.the other day, which is fun. My question is that the first audience

:19:47. > :19:50.is called gamers, the people mad about gaming. The trouble is that

:19:51. > :19:54.enough anyway, they are quite conservative. They like the way the

:19:55. > :19:58.game 's experience works now, they like playing online. When other,

:19:59. > :20:05.quote, gimmicks have come in, you think about the Xbox Kinect, which

:20:06. > :20:11.was a brilliant gadget, Sony has something similar, which allows you

:20:12. > :20:15.to control games, lots of the core gamers were sniffy about that. So

:20:16. > :20:20.the idea is how quickly they can get this to the mass audience beyond the

:20:21. > :20:24.core gamers. There are lots of industrial applications beyond

:20:25. > :20:27.gaming. People are using it in all sorts of contexts, psychiatrists

:20:28. > :20:32.using virtual reality to cure people of phobias. Lots of fascinating uses

:20:33. > :20:35.but still a bit programme. Nobody really knows what sort of

:20:36. > :20:39.game or experience will crack or drive this market. That seems to be

:20:40. > :20:43.the problem. I was talking to a games expert

:20:44. > :20:46.yesterday, saying one of the problems is that at the start, they

:20:47. > :20:50.are taking existing games and modifying them for VR, what you need

:20:51. > :20:54.is to build them for virtual reality, which is a company the

:20:55. > :21:02.different medium from the ground up. This ability to have the whole world

:21:03. > :21:06.around you is very different from looking straight ahead at a screen,

:21:07. > :21:11.which is traditional gameplay. We don't have a lot of time, but you

:21:12. > :21:14.and I on one of my other programmes yesterday were talking about

:21:15. > :21:19.Microsoft's product, briefly explain that. A real-world application?

:21:20. > :21:25.There is virtually a litany, and there is something which some people

:21:26. > :21:28.call augmented reality, Microsoft calls it mixed reality. It has a

:21:29. > :21:32.headset which imposes virtual objects on a real world, you see

:21:33. > :21:37.virtual objects on the real world. It has a very different approach. It

:21:38. > :21:40.is going to business customers in the enterprise world, very

:21:41. > :21:44.expensive, it is just testing it in the enterprise world before it

:21:45. > :21:45.attempts to talk to consumers. Always a pleasure, have a great

:21:46. > :21:50.weekend. Rwandan doctors stranded

:21:51. > :21:52.without vital blood supplies Help is coming from the skies -

:21:53. > :21:56.drone deliveries. They will deliver blood

:21:57. > :21:58.to far-flung clinics, bypassing traffic or washed-out

:21:59. > :22:01.roads in the nation dubbed The Land The small packages attached

:22:02. > :22:07.to parachutes without needing to land at the delivery

:22:08. > :22:25.points before returning. This could be of the drone that

:22:26. > :22:30.catapults Rwanda and possibly the world into a faster way to deliver

:22:31. > :22:36.goods. You started Is applying has discovered a fixed weight drone that

:22:37. > :22:39.can automatically fly to its destination using satellite

:22:40. > :22:47.navigation, to 75 kilometres away. -- US started up Zipline has

:22:48. > :22:52.discovered. This is the package delivers, it

:22:53. > :22:55.comes down on what was not a brilliantly operational parachute I

:22:56. > :22:59.guess. It looks like it has come apart. But this is biodegradable, a

:23:00. > :23:05.one-time use. They don't need to worry about the environmental impact

:23:06. > :23:11.of using this. Inside is the life-saving package. This is the

:23:12. > :23:16.blood that will be used by surgeons, possibly to save someone's why. It

:23:17. > :23:23.is extremely well wrapped up, as you can see. -- to save someone's life.

:23:24. > :23:23.You definitely do not want it to spell!

:23:24. > :23:35.It is absolutely amazing. Off the back of the Samsung story,

:23:36. > :23:41.and his Ollett aeroplane, a south-western passenger had a phone,

:23:42. > :23:45.it was on fire. Rory mentioning that pilots in the US mentioned you have

:23:46. > :23:52.a Samsung phone, turn it off. Three airlines in the US are beefing up

:23:53. > :23:55.their fireproofing? These airlines will carry flameproof

:23:56. > :24:02.bag so that if one of these bikes does go up in flames, they can be

:24:03. > :24:06.zipped up and these bags contain enormous heat. -- if one of these

:24:07. > :24:09.phones does go up in flames. One interesting thing about these folks,

:24:10. > :24:14.what phones are being asked to do these days is so enormous that the

:24:15. > :24:18.batteries have to be so incredibly powerful. That is why they are using

:24:19. > :24:22.these lithium batteries, very small, very light and powerful. They get

:24:23. > :24:27.very hot. These phones are so small that they are close to other things

:24:28. > :24:31.which go up in flames. It is a dangerous mixture.

:24:32. > :24:38.Are never quite different smartphone story, the Wall Street Journal. --

:24:39. > :24:42.another quite different smartphone story. You would think that

:24:43. > :24:46.technology is the equaliser, but in India it is driving a cultural

:24:47. > :24:51.divide between men and women? In India there is a normal -- an

:24:52. > :24:56.enormous divide between the number of men that own mobile phones, and

:24:57. > :25:00.the number of women. Around 100 million more Indian men have a

:25:01. > :25:07.mobile phone than women. This is a cultural issue, parents, fathers,

:25:08. > :25:11.not wanting their daughters to have mobile phones because they see it as

:25:12. > :25:19.a means of them talking to boys and generally being disruptive for their

:25:20. > :25:25.cultural lives. That is interesting. It is a big problem for the Indian

:25:26. > :25:29.economy. If you are holding women back from access to all this

:25:30. > :25:35.information, already the number of women in the workforce in India is

:25:36. > :25:40.falling, down at 27%. It was over 33%. It is an economic problem as

:25:41. > :25:43.well as a cultural and social one, I think.

:25:44. > :25:48.We will not have time for the last one. Thank you very much, Tom. Great

:25:49. > :25:50.to have you on the programme. Take care.

:25:51. > :26:08.Plenty more throughout arrest of the day. Goodbye.

:26:09. > :26:14.It has been a fairly grey start to the day, we have had showery breaks

:26:15. > :26:16.of rain already. Things tending to feel fairly autumnal and unsettled

:26:17. > :26:18.as we had through today