:00:07. > :00:13.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:14. > :00:17.Oil prices surge after producing nations agree a cut in output.
:00:18. > :00:22.Live from London, that's our top story on Monday
:00:23. > :00:38.It's taken a while, but both Opec and non-Opec nations have finally
:00:39. > :00:48.They're hoping to end more than two years of low oil prices.
:00:49. > :00:50.Spanning the globe in a single leap.
:00:51. > :00:55.Now travellers can fly non-stop from Australia to the UK.
:00:56. > :00:59.We'll get the details from our Asia business hub.
:01:00. > :01:01.And after more record rises on global stock markets -
:01:02. > :01:04.that rise in crude prices has also pushed the numbers higher.
:01:05. > :01:13.And we'll be getting the Inside Track on an energy
:01:14. > :01:15.company that's electrifying African homes and businesses with a little
:01:16. > :01:21.We'll be telling you how a little later.
:01:22. > :01:23.It's being reported that Amazon workers have been sleeping in tents
:01:24. > :01:30.close to the company's warehouse in Scotland.
:01:31. > :01:34.Today we want to know what lengths have you gone to to be close
:01:35. > :01:36.to your workplace in order to save time and money?
:01:37. > :01:50.A very warm welcome to the programme. We are starting with oil.
:01:51. > :01:52.Oil prices have surged in overnight trading.
:01:53. > :01:54.Brent crude rose as high as $57.89 per barrel,
:01:55. > :02:00.It has fallen back a little since then and a short while ago
:02:01. > :02:04.it was trading at $56.64, still up 4%.
:02:05. > :02:13.Well, the rise in prices comes after an historic deal was brokered
:02:14. > :02:17.over the weekend at the Opec HQ in Vienna.
:02:18. > :02:19.Opec of course is the cartel of oil-producing nations -
:02:20. > :02:25.Saudi Arabia, the world's biggest oil exporter,
:02:26. > :02:29.has committed to cuts of almost 500,000 barrels
:02:30. > :02:42.In response, other non-Opec members - including Russia -
:02:43. > :02:44.also agreed to cut their output in order to boost prices.
:02:45. > :02:47.They are pledging to slash output by 558,000 barrels per day.
:02:48. > :02:48.Also there were producers representing Azerbaijan,
:02:49. > :02:54.Oman, Mexico, Malaysia, Sudan, South Sudan and Bahrain.
:02:55. > :02:58.The moves come after more than two years of low oil prices, which have
:02:59. > :03:08.The deal marks the first global pact for 15 years.
:03:09. > :03:19.Manouchehr Takin, International oil and energy consultant is with me.
:03:20. > :03:32.As Ben says, this is key, because you have Opec and non-OPEC members
:03:33. > :03:38.agreeing. Yes, we have to remember that from January onwards they will
:03:39. > :03:45.start cutting gradually, so they haven't reduced yet, but the market
:03:46. > :03:50.despite sceptic and negative commentators, the market has reacted
:03:51. > :03:58.positively. My feeling was that Opec would agree, and now they and
:03:59. > :04:00.non-OPEC are agreeing. As you say, there are sceptics out there about
:04:01. > :04:04.whether these countries would deliver on the promise in the New
:04:05. > :04:10.Year. What makes you think they will do this time? Because it has taken
:04:11. > :04:14.two years, the stand-off, who is going to blink first, and they have
:04:15. > :04:19.all blinked together. Because they are all losing, so the amount of
:04:20. > :04:25.reduction of volume they do compared with the increase in price, the
:04:26. > :04:32.total revenue will be higher for all of them. And just to say that try to
:04:33. > :04:34.counter that scepticism, Opec are saying we are having a meeting in
:04:35. > :04:41.Vienna in May next year to review how it is all going. Yes, they are
:04:42. > :04:45.setting up a steering committee. They had this before on previous
:04:46. > :04:52.occasions, but they are serious. All these mechanisms are there, but they
:04:53. > :04:58.will have change, if one country over produces, it will be seen in
:04:59. > :05:02.the statistics. Mostly they have all suffered, even Saudi Arabia, the
:05:03. > :05:11.richest country, has gone to loans and debt, so they are all cutting, a
:05:12. > :05:17.little bit of price going up, it is worth their while. Just briefly,
:05:18. > :05:20.Manouchehr, when this all kicks in on the production cuts take effect,
:05:21. > :05:26.what are we looking at? That is the million dollar question, but they
:05:27. > :05:32.are definitely up, we go to $60, $70. I don't think it will go much
:05:33. > :05:36.higher. Opec is hoping for something about $60 or a little bit more,
:05:37. > :05:40.because shale oil and other producers have come back a little,
:05:41. > :05:45.and they will increase supply, and that will cap the price. The price
:05:46. > :05:50.cannot go up that much. Manouchehr, thank you viewer time. Many energy
:05:51. > :05:55.stocks higher, the likes of BP and Shelter trading higher today.
:05:56. > :05:59.The Venezuelan government has announced it will replace
:06:00. > :06:02.the country's highest denomination bank notes - the 100-bolivar note -
:06:03. > :06:06.It hopes the move will combat smuggling and tackle
:06:07. > :06:09.the chronic shortage of food and other basic items.
:06:10. > :06:11.President Nicolas Maduro says smuggling gangs that operate
:06:12. > :06:17.in border areas won't have time to repatriate the money.
:06:18. > :06:22.A similar move in India recently caused chaos.
:06:23. > :06:25.State carrier Iran Air has signed a deal to buy 80 passenger planes
:06:26. > :06:42.It is the biggest US-Iran deal since the 1979 Islamic revolution.
:06:43. > :06:44.Boeing says the deal is worth $16.6 billion
:06:45. > :06:46.at current list prices, and had been approved
:06:47. > :06:49.The first planes are scheduled for delivery in 2018.
:06:50. > :06:52.It's being reported that Italy is ready to pump capital into Monte
:06:53. > :06:54.dei Paschi di Siena, if the ailing bank fails to raise
:06:55. > :06:57.the money it needs from investors to remain in business.
:06:58. > :07:00.A source at the Italian Treasury is quoted as saying that "The bank's
:07:01. > :07:02.existence and its clients' savings will be preserved under
:07:03. > :07:06.On Sunday the bank had announced it would go ahead with plans to seek
:07:07. > :07:21.It is a brand-new week, and we are struggling with technology. They
:07:22. > :07:26.might not notice! We are just trying to find the live page, and we have a
:07:27. > :07:31.new iPad, you may notice. We can't get the pictures to load on the
:07:32. > :07:36.website. I have got it! But there are no pictures, for some reason.
:07:37. > :07:44.Guys in the office, can you sort the pictures out, please? There we go!
:07:45. > :07:49.We have a picture! You can tell it is a Monday morning, can't you? Some
:07:50. > :08:02.of the stories they are covering, Italy is the story of the day,
:08:03. > :08:05.because as we just mentioned there, Monte dei Paschi will be preserved,
:08:06. > :08:09.that is crucial because that is the one that is most at risk as far as
:08:10. > :08:11.debts are concerned in Italy. And shares are up in Italy on that
:08:12. > :08:17.story. Australia is to build
:08:18. > :08:20.a new airport in Sydney, PM Malcolm Turnbull gave the project
:08:21. > :08:24.the green light just hours after it was confirmed that
:08:25. > :08:26.new direct flights are to be launched between
:08:27. > :08:39.Australia and the UK. It is quite phenomenal where we are
:08:40. > :08:45.today given that in the 1930s when they first tried to get from London
:08:46. > :08:52.to Australia by plane. That's right, but the deal to build Sydney's
:08:53. > :08:56.second airport comes after seven decades of political squabbling, so
:08:57. > :09:05.it is also big deal. It will be built at Badger's Creek, and the
:09:06. > :09:10.first runway will open in 2020, and will take about a quarter of
:09:11. > :09:20.Sydney's current capacity. Qantas announced plans to fly nonstop
:09:21. > :09:25.between London and Australia, the 17 hour flight will start in March 2018
:09:26. > :09:29.from London to Perth. This is just about boosting visitor numbers. The
:09:30. > :09:36.new airport is central to Prime Minister Malcolm Turnbull's drive to
:09:37. > :09:40.keep the economy turning over after the end of the money drive. Think
:09:41. > :09:44.about how many films you will be able to watch in 17 hours on that
:09:45. > :09:49.flight! Let me show you the market numbers. That is what has happened
:09:50. > :09:54.in Asia, heading higher as a result of the stronger oil price. And that
:09:55. > :09:59.is what you need to know as far as oil is concerned. A similar picture
:10:00. > :10:09.we should savour Brent Crude listed in the UK. But let's take you to
:10:10. > :10:13.Europe. We will keep a watch on events, markets tending to be
:10:14. > :10:16.looking towards the US about what happens as far as Donald Trump is
:10:17. > :10:20.concerned, that business friendly rhetoric we have heard from him, and
:10:21. > :10:22.whether that comes to fruition, we will find out in the New Year. Let's
:10:23. > :10:26.head stateside. Michelle Fleury has
:10:27. > :10:34.the details about what's ahead The main focus for Wall Street is
:10:35. > :10:37.this week's Federal reserve meeting. The bank is expected to raise
:10:38. > :10:42.interest rates by a quarter point for the first time in 12 months. It
:10:43. > :10:46.is a move that has been widely telegraphed, but what investors want
:10:47. > :10:50.to know now is the size and frequency of future rate hikes.
:10:51. > :10:53.Given the potential boost to the economy from a Trump administration
:10:54. > :11:01.that has focused on tax cuts and stimulus spending. And Mr Trump was
:11:02. > :11:05.my own business interest will be under the microscope this week. He
:11:06. > :11:10.would announce his plans to avoid conflict-of-interest while he is in
:11:11. > :11:17.office. For those looking for a diversion, Oracle launched its
:11:18. > :11:19.second quarter earnings on Thursday, and how much longer will the
:11:20. > :11:24.post-election rally last? They are keeping a night on the Jones
:11:25. > :11:27.industrial average, which is surging towards 20,000 points.
:11:28. > :11:29.That was Michelle Fleury. Joining us is Kathleen Brooks,
:11:30. > :11:39.research director at City Index. Nice to see you. All of us touching
:11:40. > :11:43.on lots of issues to talk about. Michelle talks about the Fed in
:11:44. > :11:47.midweek, although everybody seems to agree on what is going to happen,
:11:48. > :11:50.but it is a big deal? It is, not because of what they are going to
:11:51. > :11:54.do, which is 100% likely that they will hike interest rates, but it is
:11:55. > :12:00.what they say about next year, the year after. Will we Mbaye, rate hike
:12:01. > :12:07.cycle in the US? Trump has lifted the market, his expectations,
:12:08. > :12:11.wanting to boost inflation, but will the punch bowl be taken away before
:12:12. > :12:18.the party has begun by the Fed signalling rate hikes? And if you
:12:19. > :12:21.add that to oil prices rising, that will mean more inflation and higher
:12:22. > :12:25.interest rates. And that will also be an issue for other inflation
:12:26. > :12:31.targeting central banks like ours, like the ECB, so I think we could be
:12:32. > :12:38.in the deathknell of the low interest-rate environment. Alex has
:12:39. > :12:43.tweeted to say he likes how I pronounce Monte dei Paschi, so I
:12:44. > :12:47.will say it again! So about this cash injection, reports say they
:12:48. > :12:52.will bear it out at all costs, because they have to protect
:12:53. > :12:56.investors? Yes it looks like they are going to get ready to bail it
:12:57. > :13:04.out, but it is still banking on potentially Qataris coming in with
:13:05. > :13:07.private capital. And surely the state isn't allowed to bailout the
:13:08. > :13:14.bank according to rules set by Brussels. What they will do with
:13:15. > :13:17.Monte dei Paschi is that will determine whether or not banking
:13:18. > :13:22.union can go ahead. The banking union tried to split the impact of
:13:23. > :13:25.banking risk and what goes on on a sovereign balance sheet, but they
:13:26. > :13:28.may not be able to do it this time because it is too painful to let a
:13:29. > :13:32.bank go to the wall. Too big to fail. Kathleen, good to see you,
:13:33. > :13:36.have a good week. Why buying electricity in the UK
:13:37. > :13:41.could help power parts of Kenya. We speak to the energy firm helping
:13:42. > :13:44.thousands of Kenyan villages You're with Business
:13:45. > :13:49.Live from BBC News. The British Chambers of Commerce has
:13:50. > :13:52.upgraded its forecast It now believes GDP will grow
:13:53. > :14:01.by 2.1% in 2016 up from 1.8%. But the long-term picture
:14:02. > :14:04.isn't looking so rosy - it's now lowered forecasts
:14:05. > :14:10.for 2018 to 1% from 1.4%. The Director General
:14:11. > :14:20.of the BCC is Dr Adam Marshall Good morning. Talk us through these
:14:21. > :14:24.numbers, because it strikes me given all this uncertainty we have seen
:14:25. > :14:28.big predictions, up, down, left, right, for what the economy is going
:14:29. > :14:34.to do. How confident are you that you have got these numbers right? We
:14:35. > :14:38.always forecast steady growth in 2016, and we have raised it or not,
:14:39. > :14:41.because we have seen a lot of firms adopting a business as usual
:14:42. > :14:45.attitude, and cracking on doing deals through the course of this
:14:46. > :14:51.year. But we do think it will come off the boil next year, we are
:14:52. > :14:55.predicting 1.1% for next year and 1.4% for 2018, and the main factor
:14:56. > :15:03.is inflation following the devaluation of sterling. Businesses
:15:04. > :15:06.and consumers will be hit with inflation, and that will affect
:15:07. > :15:11.their decisions. And what about Brexit? That is what prompted the
:15:12. > :15:15.rise in inflation, and that devaluation of sterling as well, so
:15:16. > :15:20.it is one of many factors. Luckily we are not looking at a recession,
:15:21. > :15:24.nor are we looking at a spike in unemployment. We are just looking at
:15:25. > :15:27.less inspiring growth over the couple of years to come. So what are
:15:28. > :15:32.you saying to your members in the light of that? What do they need to
:15:33. > :15:38.do to counter the falling growth? The first thing to do is make sure
:15:39. > :15:41.your company is ready for change and uncertainty, and IAC businesses day
:15:42. > :15:45.in and day out who say they are not just ready for it but looking
:15:46. > :15:50.forward to it. At a micro level, you have a lot of firms out there who
:15:51. > :15:53.are seen disruption and change as an opportunity to grab new markets and
:15:54. > :15:58.grow and look at new places around the world they can export to. That
:15:59. > :16:02.is fantastic. The economy as a whole other macro level doesn't feel quite
:16:03. > :16:04.as confident, there is still uncertainty out there, so businesses
:16:05. > :16:09.need to get ready and the Government needs to back up. Good to talk to
:16:10. > :16:17.you, Dr Adam Marshall. Thank you very much indeed. Let's take you to
:16:18. > :16:21.the live page, Asos is hiring 1500 staff and will put them in its
:16:22. > :16:22.London HQ, this coming at a time where conditions were described as
:16:23. > :16:30.exploitative. You're watching Business Live.
:16:31. > :16:31.Our top story: Oil prices have surged after both
:16:32. > :16:34.Opec and non-Opec nations The agreement comes after more
:16:35. > :16:52.than two years of depressed prices. We are seeing the oil price surging.
:16:53. > :16:56.You can see the markets in Europe fairly mixed, but the ones that are
:16:57. > :16:59.winning today are the big oil majors, Total, BP, Shell, those
:17:00. > :17:04.companies are pushing up the main indexes in Europe today.
:17:05. > :17:07.Now, chances are you don't much think about your power provider.
:17:08. > :17:10.You might shop around for a cheaper deal, but that's about it.
:17:11. > :17:12.Well, now one firm says as well as offering cheaper prices,
:17:13. > :17:17.Brighter World Energy says it can undercut the big six energy
:17:18. > :17:20.providers in the UK and at the same time help areas in Africa
:17:21. > :17:24.that don't yet have an electricity infrastructure.
:17:25. > :17:29.The company says that for every 20,000 customers in the UK who sign
:17:30. > :17:34.up, it will install a solar power rig in, an African
:17:35. > :17:35.village that doesn't currently have any electricity.
:17:36. > :17:38.The first solar powered micro-grid is expected to start operating
:17:39. > :17:46.The company was founded just this year by 33-year-old former
:17:47. > :17:48.journalist Cheryl Latham and hopes to invest ?1.4 million in Africa
:17:49. > :18:00.I want to clarify, it is 2,000 customers, isn't it? For every 2,000
:18:01. > :18:04.customers. Not 20,000! Just so we get that right because
:18:05. > :18:08.20,000 is a big goal for you to achieve and you think you will hit
:18:09. > :18:13.your 2,000 in the New Year, your first 2,000? Yeah, we do. We think
:18:14. > :18:17.that people in the UK really under estimate the pour we are of their
:18:18. > :18:19.purchase. Here in the UK we under estimate pour we are in general,
:18:20. > :18:24.that's the power running to our homes, but the power that we've got
:18:25. > :18:27.to talk about the world we want to live in and doing something
:18:28. > :18:31.differently. We are being told that in the UK that the big six are
:18:32. > :18:35.keeping prices higher. And we should be switching and we are not
:18:36. > :18:41.switching as much as the regulators are telling us to and some companies
:18:42. > :18:46.have gone bust in the meantime? Yeah, well GB Energy went bust
:18:47. > :18:49.because it was selling energy too cheaply and we are here to inspire
:18:50. > :18:54.customers, the majority of customers who are sitting on the expensive
:18:55. > :18:57.standard tariffs to come over to our's and give back while they
:18:58. > :19:00.switch on the lights at home. You will be making a profit and you will
:19:01. > :19:06.be staying in business? We are a procht for purpose company. We are
:19:07. > :19:11.backed by a not-for-profit energy Ofgem relayed supplier. It is a
:19:12. > :19:18.very, very secure business model, so we cut out comparison sites and
:19:19. > :19:21.don't pay inflated salaries and we want to ensure that UK customers can
:19:22. > :19:26.give back to the world around them as well as make sure that they've
:19:27. > :19:29.got the best presents under their own Christmas tree this year. Let's
:19:30. > :19:34.talk about what you're doing internationally then. How does that
:19:35. > :19:45.translate? If I'm a customer of yours, how does my money get used in
:19:46. > :19:51.Africa? Energy equals opportunity. So if we can put down some solar
:19:52. > :19:55.power grid where the sun is in abundance, children can study into
:19:56. > :20:00.the evening, vaccines can be stored safely, streets and homes can be lit
:20:01. > :20:04.at night. It sounds wonderful, but in terms of the logistics of it,
:20:05. > :20:09.what have you had to do in terms of working with the authorities to make
:20:10. > :20:13.sure this does happen. Do you have a team out there that install these
:20:14. > :20:20.things? We have got a team out in of a rick rick and we have been out to
:20:21. > :20:23.Africa on numerous occasions, we have spoken to the World Bank and
:20:24. > :20:28.Government officials and there is a huge appetite because I think many
:20:29. > :20:32.African nations know that rolling out grid infrastructure is
:20:33. > :20:35.particularly extensive and reaching the most remote, the last mile
:20:36. > :20:39.communities will be difficult and you have got to include the private
:20:40. > :20:46.sector. What does it cost you as a company to put out one of the grids?
:20:47. > :20:50.Between $70,000 and $100,000. US dollars? That's why it is a
:20:51. > :20:57.community of people here in the UK switching on a community over in
:20:58. > :21:03.Africa. It costs $70 for every customer to switch. If we cut that
:21:04. > :21:07.out, we can use that to give back to people elsewhere. You are a former
:21:08. > :21:10.journalist... Yes. Now you are running the company and heavily
:21:11. > :21:14.involved in the work in Africa. How do you make the leap from there to
:21:15. > :21:18.there? Well, this was the kind of company that I wanted to buy from
:21:19. > :21:21.and it didn't exist and there is a whole new generation of people out
:21:22. > :21:24.there that want it do good with their money and care about where
:21:25. > :21:28.their money goes. I was a business editor on a national newspaper and I
:21:29. > :21:31.was looking, I realised that businesses had a huge opportunity it
:21:32. > :21:37.do some fundamental good in the world. So I ditched my career at 30,
:21:38. > :21:40.I went and studied an M BA, I got involved in merge, in clean
:21:41. > :21:44.technology and I built the business over the last two years and raised
:21:45. > :21:50.investment and launched last month. Well, all the best. Thanks. Good
:21:51. > :21:52.luck. I look forward to your switch! We will keep an eye on you, that's
:21:53. > :21:55.for sure. In a moment we'll take a look
:21:56. > :21:58.through the Business Pages but first here's a quick reminder of how
:21:59. > :22:03.to get in touch with us. The Business Live page is where you
:22:04. > :22:07.can stay ahead with all the day's breaking business news. We'll keep
:22:08. > :22:11.you up-to-date with all the latest details with insight and analysis
:22:12. > :22:16.from the BBC's team of editors right around the world. And we want to
:22:17. > :22:22.hear from tu. Get involved on the BBC Business Live web page at:
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:22:29. > :22:34.Business Live on TV and online whenever you need to know.
:22:35. > :22:42.The BBC's Dominic O'Connell is with us.
:22:43. > :22:49.What lengths have you gone to to get to work on time or save money? Let's
:22:50. > :22:52.talk about the massive Italian bank to start with. Sources from the
:22:53. > :22:56.Treasury are saying a rescue is in place. What do you know? Yes, I
:22:57. > :23:01.don't know if it is completely done and dusted. Overnight the third
:23:02. > :23:08.largest lender in Italy, it is very old, it is the oldest continuously
:23:09. > :23:22.trading bank in the world, it has a long track record, but it trying to
:23:23. > :23:26.stay afloat. If it is going to do the rescue deal, it will have to
:23:27. > :23:33.bail-in its lenders. Some of the lenders are ordinary retail
:23:34. > :23:37.investors. So you can imagine the Government coming to power, saying,
:23:38. > :23:41."You have to foot the bill for a banking collapse." Where is this
:23:42. > :23:47.money coming from? The cornerstone was meant to be the state of Qatar.
:23:48. > :23:53.Between the two of them you get to five billion. Whether it will
:23:54. > :23:56.happen, without the Italian state having to intervene against Europe's
:23:57. > :23:59.rules and you have another clash between the Italian national
:24:00. > :24:05.Government and Brussels, the whole thing is not done and dusted yet. It
:24:06. > :24:16.is very, I think, this has a long way to run. Dominic, an astonishing
:24:17. > :24:23.story. Amazon workers in Scotland sleeping near the warehouse in
:24:24. > :24:27.tents. That picture really is damning,
:24:28. > :24:32.isn't it? It is actually. There have been a number of investigations into
:24:33. > :24:36.Amazon's workplace practises and some of them uncovered some
:24:37. > :24:41.unhealthy and unsavoury tactics. It is part of the whole two-speed
:24:42. > :24:47.economy. Asos said it was going higher another 1500 people in --
:24:48. > :24:51.hire people in London. These are in IT and marketing and planning. You
:24:52. > :24:56.have this idea that in London and around the M25, highly skilled well
:24:57. > :25:00.paid workers. Outside the M25, working for the same company,am
:25:01. > :25:04.sorngs aso, you're not so secure and not so highly paid.
:25:05. > :25:08.It is not just about Amazon, but it is the delivery people. There was
:25:09. > :25:13.concern about the different smaller courier companies and the people who
:25:14. > :25:17.work for them? Amazon, of course, subcontracts the delivery and a lot
:25:18. > :25:20.of the delivery firms are subcontracted so they don't have
:25:21. > :25:24.responsibility for the employment. Who are these people really working
:25:25. > :25:28.for? We were discussing that, the crux of this is they have to pay ?10
:25:29. > :25:32.to get on the bus to travel there because there is no other public
:25:33. > :25:36.transport, but that takes a big chunk out of their money, but we
:25:37. > :25:42.have to pay to get to work, is it fair this is a particular problem
:25:43. > :25:48.for Amazon? It is wrong to decry Amazon, this is one example a few
:25:49. > :25:52.people. We need to talk to the workforce, do they enjoy their job?
:25:53. > :25:56.What would they be doing if they didn't have Amazon?
:25:57. > :25:58.Thank you for your time. We're back tomorrow. Fingers crossed the tech
:25:59. > :26:14.will work. See you soon. Bye-bye. Good morning. It has been a rather
:26:15. > :26:15.grey start to the day. We've got a lot of low cloud around and