14/10/2016 BBC Business Live


14/10/2016

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This is Business Live from BBC News, with Aaron Heslehurst

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The world's fastest growing greenhouse gases are set to be

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banned at an international conference in Kigali.

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Live from London, that's our top story on Friday the 14th

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HFCs are vital to air conditioning and refrigeration.

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But as the deal is closed, can developing economies like India

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delay the restrictions to grow their economies?

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Also in the programme, burning a hole in their pocket -

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Samsung says it expects the Note seven write-off to cost it

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The total cost for Samsung, 5.3 billion.

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We'll have our very own Rory Cellan-Jones on set,

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talking us through exploding smartphones and the wack

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Plus, flying doctors - but not as you know them.

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The world's first commercial regular drone delivery service is beginning

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The blood they carry will cut the waiting times in hospitals

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Today we want to know what else would you have drones deliver?

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Tweet us using the hashtag #bbcbizlive.

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It is Friday, welcome to the programme. Let's take a look at the

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hydrofluorocarbons. They are gases that make a big impact on global

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warming but a meeting of more than 150 countries in Rwanda -- Uganda's

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capital Kigali is expected to announce a ban on them. They are

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widely used in refrigeration, air conditioning, aerosols. If their use

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isn't reduced, HFCs could end up causing 20% of emissions which

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Increasing demand for refrigeration Increasing demand for refrigeration

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and global warming in economies like India have seen the use of HFCs up

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by some 10-15%. It is thought that it could make a 0.5 difference to

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global warming, which would certainly be a sizeable

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contribution. Let's speak to our environment correspondent. 150

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countries, that is a lot to get them to agree on something. Is it really

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likely to happen? It is likely to happen but maybe not today. There

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are quite a few differences between the countries. Everyone is agreed on

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the printable, the removal of HFCs or the phasing out of them over the

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next 20 years or so. The exact date, that is when the tough negotiations

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are beginning and that is a question of India and some countries against

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the United States and Europe and some African countries. The US wants

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an early date, they want to get rid of these as soon as possible. The

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European Union wants to reduce them by 40% by 2018. On the other hand,

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India want to keep these gases going and the Gulf state, which have very

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high temperatures, they say they have no faith in the replacement one

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so far. There's a lot of hard talking to be done here and they are

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likely to get a deal. It will be some sort of compromise. It will be

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a good fund to help the countries like India to adapt. Secretary of

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State John Kerry is here and it's likely leave going to help forge

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that later today. -- help forge that deal.

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Julian Newman is the campaigns director at the Environmental

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Welcome to the programme. These emissions are dwarfed by global

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emissions of CO2, so why are we so worried about them? It's probably

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the most cost efficient strategy available to us. If we take action,

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we can avoid half a degree of global warming and it can be done, so the

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alternatives are there. First we were cracking down on CFCs, then

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HCFCs, now HFCs. Natural refrigerants are a perfect

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substitute for HFCs, they are growing in number and they are

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available. We need to transition away from HFCs to more natural

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chemicals which are more benign to the environment but still gives the

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cooling that we need. And getting more developing economies to use

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those. You can only imagine that people are going to be buying

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machines with them. The key is to help countries transition away from

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those options. The system is there, it works. We need to apply that

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thinking and logic to the climate change issue now. You need some

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serious injuries and is to get countries like India on-board camera

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is a bit of money going to be enough? I think ultimately this is a

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phase down where going to talk about, it's not like it's going to

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

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technological cul-de-sac where these are not allowed any more. They have

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to be backed up with financial assistance. Do you believe this is

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what is going to happen, they will be banned? I believe a deal will be

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worked out. Some countries want it to take longer but I'm confident

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there will be a deal today in Kigali. We're really hopeful it will

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take place in the next day or so. Thanks very much, have a good

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weekend. Let's touch on some of the other stories making the headlines

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around the world. HP Incorporated, the hardware

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business of former tech giant Hewlett-Packard,

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is cutting between 3000 and 4000 Hewlett Packard was split up

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into two parts - effectively the profitable, growth part,

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which is the cloud computing side, and the struggling part

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of the business, PCs and printers. Shares are down 1.3%

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in extended trading. The US telecoms firm Verizon says

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Yahoo's massive data breach could have a material impact

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on its deal to buy the firm. Back in July it agreed to buy

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the biggest parts of the business Since then, Yahoo revealed

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that hackers stole data Many wondering whether Verizon might

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look to reduce the price or even It's not a day if we don't mention

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Samsung! Samsung expects further blows

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to its profits from the withdrawal of the Note 7 phone,

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saying revenue will be affected The tech giant had already revised

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down its third quarter On Friday, it said it expected

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an additional negative impact Debts on top, that is the total, 5.3

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billion. That's what they're saying. Steve, good to see you. It's a chunk

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of change, but it ain't going to kill off Samsung's smartphone

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business, is it? No, it's about 10% of annual profits. It is a dent,

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certainly. The big question will be whether the brand is damaged beyond

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the current quantifiable costs. The the current quantifiable costs. The

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first quarter costs are just the cost of getting the recall, paying

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back the customers, two and a half million customers who bought the

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thing, they want their money back. And then the second tranche of cost

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is the foregone sales. Samsung reckons it would have sold something

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like 15,000,000-17,000,000 of the devices and those sales are

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foregone. Some of those make Samsung products but others will go to

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Apple. The unknowable is the cost to the brand and that will be longer

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term and that will be the crucial one. Thanks for the update, much

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appreciated. Guess who makes the chips for the

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Apoel phones? Samsung! -- for the Apple phones.

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Asian stocks and the dollar bounced on Friday, erasing some losses

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from the previous day, because we saw some

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stronger-than-expected Chinese inflation numbers eased some

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concerns about the health of the world's second-biggest economy.

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Remember yesterday we saw weak export numbers from China -

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But this price increase, the higher inflation in China

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will be good news for profits and for Beijing as the government

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struggles to reduce a mountain of corporate debt.

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Not a lot driving the London and European markets.

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We are keeping an eye on a bit of a sell-off in basic resources

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stocks because metal prices fell following poor that weaker

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And Michelle Fleury has the details about what's ahead

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American banks are under the microscope this Friday, less than 48

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hours after replacing John stumped as chief executive of Wells Fargo,

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Tim Sloan will have to face investigations... Low interest rates

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are generally making it harder for banks to make money and that is

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likely to be reflected in the latest quarterly results from JP Morgan

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Chase and Citigroup. JP Morgan is expected to report a decline in

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third quarter earnings. On the economic front, September's retail

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sales figures should offer a glimpse into how American consumers are

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faring. Tom Stevenson is investment director

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at Fidelity International. He joins us now in the studio. Good

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morning. Let's start with the pound, it's hardly been out of the news

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this week, the British pound. What is going on and do you think it can

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go any lower? That is the consensus trade at the moment, that the pound

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is going to go lower. Expectations are that it could fall as lower as

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

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differently, I think for various reasons the pound has probably

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fallen far enough. 20 years ago it was worth $1.71. If you look at

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Falls in the pound since the Second World War, there have been many that

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they tend to end after about 30%. It feels as though this one may have

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run its course. But the landscape has completely changed. It's

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difficult to look at historical data and try to apply it to the future,

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given that we have this huge cloud of uncertainty over Brexit. Well, we

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haven't always been in the EU. I'm angry at this because it's not

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justified. The economic numbers are still pretty solid for the UK? They

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are pretty solid and if you look at the purchasing power of the pound,

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if you compare it with the dollar on a purchasing parity basis, some

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people say it's about 15% oversold so it is actually cheap against the

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dollar. You pick the paper stories today, didn't you? I did, hope you

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like them! Still to come, we look at this week's biggest tech stories.

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We'll be talking virtual reality and have more on Samsung's

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smartphone woes in a few minutes' time.

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You're with Business Live from BBC News.

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Issues surrounding the supply of leading brands including Marmite

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The supermarket giant and the UK's largest food manufacturer, Unilever,

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had been locked in a battle over wholesale prices.

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But the BBC understands that Unilever has given some ground,

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A storm in a Pot Noodle! CHUCKLES

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Sean Farrington is at a shampoo factory in Bury, where they've seen

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an increase in the cost of raw materials.

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Yes, I'm here at this health and beauty factory near Bury in Greater

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Manchester, where Face in Nature are making bottles filled with shampoo.

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Here's a view stuck on the supply line at the minute. We're talking

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about the ingredients and the cost to the business of that. After the

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Tesco Unilever debate yesterday, how much of an effect does it make when

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the pound gets weaker and the costs go up? Here, 60% of being greedy and

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is in this bottle from the UK but a third are from abroad, so costs for

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that are going to go up as that pound gets weaker over the last few

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months. It's not just costs going up when the pound weakens, this company

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exports a lot, just got a deal with the United States. It means that

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exporting as a lucky easier for them because for people in America, the

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goods here are cheaper than they were before. When it comes down to

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prices, what is going to happen at the tills? Suppliers like these have

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to persuade supermarkets at some point to take on a bit more of those

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price rises if they can't take them on themselves. The supermarkets have

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to make the decision which we saw yesterday Tesco were reluctant to do

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about passing that cost on to consumers. We haven't seen much of

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that done at the moment but that could be coming in the coming

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months. Let's see what's going on on the

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life page. One of the stories that has been there all week is the

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pound, it is falling again after the president of the opinion Council,

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Donald Tusk, and the French finance minister, some of their comments,

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saying there is only a hard accident or no Brexit, as far as he is

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concerned -- the president of the European Council, Donald Tusk.

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A pharmacy company has talked to Radio 4's Today Programme saying

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they might have too reduced staff, cut services or close altogether if

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the Government goes ahead with planned cuts on payments to the

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agency, according to the chair of the Pharmacy Voice.

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An international deal to tackle global warming by phasing out

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the use of potent greenhouse gases is expected to be reached today.

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HFCs are a key component in fridges, air conditioners and aerosols.

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Even has spray! I don't use any has spray! HFC cars,

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what do they stand for? Hydrofluorocarbons. Good girl.

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We've had a potentially game changing product released from Sony

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that could make the world of virtual reality more accessible.

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And Samsung has had a rotten couple of days -

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and as we heard earlier in the programme they will see

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billions go up in flames over the exploding Galaxy Note 7 phone.

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Our tech guru Rory Cellan-Jones is here.

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Happy Friday, good to see you. I am always amazed, she is a very patient

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woman excavation before we came to, Rory said mention washing machines.

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That is all I will mention. Take it away. This is a huge blow to

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its mobile phone division. Samsung makes an awful lot more than mobile

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phones. That is the huge profit generator, but it is very proud of

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its consumer devices. It has a new washing machine where you can add an

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stuff at a late stage. My wife said to me the other day... You mean

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clothes? It has a little draw that you can add stuff into. My wife said

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to me the other day... I said to her, we had forgotten to put

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something in, I said, we can get one of those and she said, yes, but it

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might catch fire. It is a story about how the wider contagion can

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take place. The other thing we have had in recent weeks is people

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getting on an aircraft, the first thing the captain says is that if

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you have a Samsung phone, they don't even say a Samsung note seven, turn

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it off now. But causes damage to the brand. I have seen one major UK

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mobile operator this week sending out a poll to its customers asking

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them how they feel about Samsung products. That is the issue we had

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to deal with. I am sure they will deal with it. It is a question of

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how long memories are about this. But before we move on, the quirky

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thing about this is Steve Evans that we were talking to earlier, they

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will lose the sales of the note seven, that has gone, maybe people

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will not buy another Samsung product, maybe they will buy Apple

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microproducts, but who makes the chips for them? Samsung will still

:18:24.:18:31.

win. They make chips for Apple. Let's not underestimate... In the

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catalogue of corporate crises, Corbridge recalled, this is pretty

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big. Let's talk about Sony. -- in the

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catalogue of corporate crises, corporate recalls.

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We have a proper! This is what you get up to in your spare time! Sony

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has joined the virtual reality race with the PlayStation VR headset. I

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know it is kind of cool, but will people buy it? This is a big moment

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for virtual reality. In Las Vegas we have seen a lot of money going into

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it, lots of projections about what the industry might own. The first

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global player is getting involved. It has got a ready-made audience. We

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will now find out what the appetite for it is. It is fantastic, it is a

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very immersive experience. I was under water with sharks attacking me

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the other day, which is fun. My question is that the first audience

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is called gamers, the people mad about gaming. The trouble is that

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enough anyway, they are quite conservative. They like the way the

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game 's experience works now, they like playing online. When other,

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quote, gimmicks have come in, you think about the Xbox Kinect, which

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was a brilliant gadget, Sony has something similar, which allows you

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to control games, lots of the core gamers were sniffy about that. So

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the idea is how quickly they can get this to the mass audience beyond the

:20:16.:20:20.

core gamers. There are lots of industrial applications beyond

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gaming. People are using it in all sorts of contexts, psychiatrists

:20:25.:20:27.

using virtual reality to cure people of phobias. Lots of fascinating uses

:20:28.:20:32.

but still a bit programme. Nobody really knows what sort of

:20:33.:20:35.

game or experience will crack or drive this market. That seems to be

:20:36.:20:39.

the problem. I was talking to a games expert

:20:40.:20:43.

yesterday, saying one of the problems is that at the start, they

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are taking existing games and modifying them for VR, what you need

:20:47.:20:50.

is to build them for virtual reality, which is a company the

:20:51.:20:54.

different medium from the ground up. This ability to have the whole world

:20:55.:21:02.

around you is very different from looking straight ahead at a screen,

:21:03.:21:06.

which is traditional gameplay. We don't have a lot of time, but you

:21:07.:21:11.

and I on one of my other programmes yesterday were talking about

:21:12.:21:14.

Microsoft's product, briefly explain that. A real-world application?

:21:15.:21:19.

There is virtually a litany, and there is something which some people

:21:20.:21:25.

call augmented reality, Microsoft calls it mixed reality. It has a

:21:26.:21:28.

headset which imposes virtual objects on a real world, you see

:21:29.:21:32.

virtual objects on the real world. It has a very different approach. It

:21:33.:21:37.

is going to business customers in the enterprise world, very

:21:38.:21:40.

expensive, it is just testing it in the enterprise world before it

:21:41.:21:44.

attempts to talk to consumers. Always a pleasure, have a great

:21:45.:21:45.

weekend. Rwandan doctors stranded

:21:46.:21:50.

without vital blood supplies Help is coming from the skies -

:21:51.:21:52.

drone deliveries. They will deliver blood

:21:53.:21:56.

to far-flung clinics, bypassing traffic or washed-out

:21:57.:21:58.

roads in the nation dubbed The Land The small packages attached

:21:59.:22:01.

to parachutes without needing to land at the delivery

:22:02.:22:07.

points before returning. This could be of the drone that

:22:08.:22:25.

catapults Rwanda and possibly the world into a faster way to deliver

:22:26.:22:30.

goods. You started Is applying has discovered a fixed weight drone that

:22:31.:22:36.

can automatically fly to its destination using satellite

:22:37.:22:39.

navigation, to 75 kilometres away. -- US started up Zipline has

:22:40.:22:47.

discovered. This is the package delivers, it

:22:48.:22:52.

comes down on what was not a brilliantly operational parachute I

:22:53.:22:55.

guess. It looks like it has come apart. But this is biodegradable, a

:22:56.:22:59.

one-time use. They don't need to worry about the environmental impact

:23:00.:23:05.

of using this. Inside is the life-saving package. This is the

:23:06.:23:11.

blood that will be used by surgeons, possibly to save someone's why. It

:23:12.:23:16.

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

:23:17.:23:23.

You definitely do not want it to spell!

:23:24.:23:23.

It is absolutely amazing. Off the back of the Samsung story,

:23:24.:23:35.

and his Ollett aeroplane, a south-western passenger had a phone,

:23:36.:23:41.

it was on fire. Rory mentioning that pilots in the US mentioned you have

:23:42.:23:45.

a Samsung phone, turn it off. Three airlines in the US are beefing up

:23:46.:23:52.

their fireproofing? These airlines will carry flameproof

:23:53.:23:55.

bag so that if one of these bikes does go up in flames, they can be

:23:56.:24:02.

zipped up and these bags contain enormous heat. -- if one of these

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phones does go up in flames. One interesting thing about these folks,

:24:07.:24:09.

what phones are being asked to do these days is so enormous that the

:24:10.:24:14.

batteries have to be so incredibly powerful. That is why they are using

:24:15.:24:18.

these lithium batteries, very small, very light and powerful. They get

:24:19.:24:22.

very hot. These phones are so small that they are close to other things

:24:23.:24:27.

which go up in flames. It is a dangerous mixture.

:24:28.:24:31.

Are never quite different smartphone story, the Wall Street Journal. --

:24:32.:24:38.

another quite different smartphone story. You would think that

:24:39.:24:42.

technology is the equaliser, but in India it is driving a cultural

:24:43.:24:46.

divide between men and women? In India there is a normal -- an

:24:47.:24:51.

enormous divide between the number of men that own mobile phones, and

:24:52.:24:56.

the number of women. Around 100 million more Indian men have a

:24:57.:25:00.

mobile phone than women. This is a cultural issue, parents, fathers,

:25:01.:25:07.

not wanting their daughters to have mobile phones because they see it as

:25:08.:25:11.

a means of them talking to boys and generally being disruptive for their

:25:12.:25:19.

cultural lives. That is interesting. It is a big problem for the Indian

:25:20.:25:25.

economy. If you are holding women back from access to all this

:25:26.:25:29.

information, already the number of women in the workforce in India is

:25:30.:25:35.

falling, down at 27%. It was over 33%. It is an economic problem as

:25:36.:25:40.

well as a cultural and social one, I think.

:25:41.:25:43.

We will not have time for the last one. Thank you very much, Tom. Great

:25:44.:25:48.

to have you on the programme. Take care.

:25:49.:25:50.

Plenty more throughout arrest of the day. Goodbye.

:25:51.:26:08.

It has been a fairly grey start to the day, we have had showery breaks

:26:09.:26:14.

of rain already. Things tending to feel fairly autumnal and unsettled

:26:15.:26:16.

as we had through today

:26:17.:26:18.

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