14/10/2016 BBC Business Live


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This is Business Live from BBC News, with Aaron Heslehurst


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


banned at an international conference in Kigali.


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


HFCs are vital to air conditioning and refrigeration.


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


delay the restrictions to grow their economies?


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


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


The total cost for Samsung, 5.3 billion.


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


talking us through exploding smartphones and the wack


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


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


The blood they carry will cut the waiting times in hospitals


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


Tweet us using the hashtag #bbcbizlive.


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


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


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


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


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


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


Increasing demand for refrigeration Increasing demand for refrigeration


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


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


global warming, which would certainly be a sizeable


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


that later today. -- help forge that deal.


Julian Newman is the campaigns director at the Environmental


Welcome to the programme. These emissions are dwarfed by global


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


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


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


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


HCFCs, now HFCs. Natural refrigerants are a perfect


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


around the world. HP Incorporated, the hardware


business of former tech giant Hewlett-Packard,


is cutting between 3000 and 4000 Hewlett Packard was split up


into two parts - effectively the profitable, growth part,


which is the cloud computing side, and the struggling part


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


in extended trading. The US telecoms firm Verizon says


Yahoo's massive data breach could have a material impact


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


the biggest parts of the business Since then, Yahoo revealed


that hackers stole data Many wondering whether Verizon might


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


Samsung! Samsung expects further blows


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


saying revenue will be affected The tech giant had already revised


down its third quarter On Friday, it said it expected


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


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


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


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


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


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


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


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


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


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


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


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


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


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


appreciated. Guess who makes the chips for the


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


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


from the previous day, because we saw some


stronger-than-expected Chinese inflation numbers eased some


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


Remember yesterday we saw weak export numbers from China -


But this price increase, the higher inflation in China


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


struggles to reduce a mountain of corporate debt.


Not a lot driving the London and European markets.


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


stocks because metal prices fell following poor that weaker


And Michelle Fleury has the details about what's ahead


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


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


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


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


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


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


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


sales figures should offer a glimpse into how American consumers are


faring. Tom Stevenson is investment director


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


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


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


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


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


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


differently, I think for various reasons the pound has probably


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


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


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


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


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


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


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


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


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


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


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


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


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


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


smartphone woes in a few minutes' time.


You're with Business Live from BBC News.


Issues surrounding the supply of leading brands including Marmite


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


had been locked in a battle over wholesale prices.


But the BBC understands that Unilever has given some ground,


A storm in a Pot Noodle! CHUCKLES


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


an increase in the cost of raw materials.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


the Government goes ahead with planned cuts on payments to the


agency, according to the chair of the Pharmacy Voice.


An international deal to tackle global warming by phasing out


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


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


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


what do they stand for? Hydrofluorocarbons. Good girl.


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


that could make the world of virtual reality more accessible.


And Samsung has had a rotten couple of days -


and as we heard earlier in the programme they will see


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


Our tech guru Rory Cellan-Jones is here.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


catalogue of corporate crises, Corbridge recalled, this is pretty


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


catalogue of corporate crises, corporate recalls.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


core gamers. There are lots of industrial applications beyond


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


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


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


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


the problem. I was talking to a games expert


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


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


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


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


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


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


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


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


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


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


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


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


is going to business customers in the enterprise world, very


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


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


weekend. Rwandan doctors stranded


without vital blood supplies Help is coming from the skies -


drone deliveries. They will deliver blood


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


roads in the nation dubbed The Land The small packages attached


to parachutes without needing to land at the delivery


points before returning. This could be of the drone that


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


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


can automatically fly to its destination using satellite


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


discovered. This is the package delivers, it


comes down on what was not a brilliantly operational parachute I


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


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


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


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


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


You definitely do not want it to spell!


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


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


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


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


their fireproofing? These airlines will carry flameproof


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


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


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


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


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


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


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


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


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


another quite different smartphone story. You would think that


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


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


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


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


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


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


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


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


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


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


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


well as a cultural and social one, I think.


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


to have you on the programme. Take care.


Plenty more throughout arrest of the day. Goodbye.


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


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


as we had through today


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