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This is Business Live from BBC News with Rachel Horne and Sally Bundock.
The oil giant made $2.6 billion last year, that's less than half
Live from London, that's our top story on Tuesday 7th February.
With oil prices on their way up and a cut in supply,
does the future look better for the companies that
Also in the programme, cashing in its chips.
Crisis-hit Toshiba takes offers for its memory business as it
looks to cover the cost of its nuclear problems.
And we'll be getting the inside track on how you track
news across the internet and around the world to work out
The co-founder of this company will be giving us the inside track. What
we are sharing, what we are liking and how valuable that data is.
And, the red telephone box is 90 years old, so it is overdue for a
makeover. It is all about getting a new age to look. When did you last
use a phone box? Use the phone -- use the hashtag.
One of the world's biggest energy companies BP has seen another sharp
It's of particular interest this time as oil prices have been
recovering thanks to the agreement reached at the end of last year
between the oil cartel Opec and non-members to cut
The company's preferred measure is underlying
That came in at $400 million in the last three months of 2016.
That means that for the year as a whole BP made $2.6 billion,
But chief executive Bob Dudley said that the year had seen "significant
strides in creating a stronger platform for growth".
Looking back to the beginning of last year, you can see
the shift in the price of oil on global markets.
It bottomed out at $27.88 a barrel in January 2016.
And on Monday it was trading at just over $56.
BP's competitors are also struggling after two years of low oil prices.
Last week, US giant Exxon Mobil reported a 51% fall in full-year
profits and Royal Dutch Shell a 44% dip.
There are wider challenges for BP and others in the industry,
including funding investment in new oil projects,
the rise of renewable-energy sources and for some a concern
about their ability pay to shareholder dividends.
Our Business Editor Simon Jack is with me.
Give us your take. On paper they do not look brilliant. The replacement
cost profit, which adjusts for the fluctuating price of oil, is half of
what it was last year, looking pretty bad. But BP has legacy
issues. In 2010 we were reporting on the Deepwater Horizon explosion,
they had to put $63 billion into cleaning that up and compensating
people, and 7 billion claim in the last year. So although the headline
numbers look worse, this was a year when they started turning the
corner. We have to remember that, because that was an enormous event,
massive cost, and many analysts say Bob Dudley has steered the ship
extremely well, given the challenges. This will be the
argument that comes up when we start talking about his pay. There was a
massive shareholder vote last year, he got paid ?40 million in a year
when BP lost $6.5 billion. If they are making more money this year,
goodness knows what they will pay him. Or did he do a better job this
year than last? He adjusted to the massive crush in price, the clean up
the Gulf of Mexico, some people think, given the hand he was dealt,
he did not do a bad job. They say they are keeping the dividend in
place, which is important for these companies are. And for pensioners
and anybody who has savings. What now for BP? They have streamlined
the business, it is a shadow of the business it was before the explosion
in the Gulf of Mexico. They have scaled back in the North Sea as
well, they have mothballed their drilling off the southern coast of
Australia, but they are hanging on. They have discovered more oil than
they sold last, so that gives you an idea they are expecting to be able
to balance their books at 16 dollars a barrel. -- $60. The dividend yield
is 6%. When it gets that high, a lot of investors think it cannot last,
but they are convinced it is OK for the time being. Because of the
disaster in the Mexico golf, it is not where it was. It used to be
slightly ahead of Shell. It is very much an American company as well,
when the American operations got hit, it knocked the stuffing out of
BP. You could argue that slimming down the company at a moment when
oil prices collapsed was not a bad thing. It imposed a bit of
discipline. They are not the same company they were. They are in
better shape than a couple of years ago.
As we have already mentioned, their shares are down today by 2% on the
FTSE 100. 30 more US technology firms have
signed a brief opposing President Trump's immigration ban,
bringing the total The new signatories include Tesla,
Adobe, HP and Evernote. A US federal appeals court will hear
arguments this Tuesday over whether to restore President Trump's
travel ban on people from seven The President of the European
Central Bank Mario Draghi has rejected claims that Germany
is manipulating It follows comments made
in a document published by the US Treasury, which accuses Germany
of undervaluing Europe's currency A South Korean company wants
to buy part of Toshiba's This is all about sheep are needed
to raise some funds pretty quickly? It is. It is not just any old chip
maker that is looking to buy the stake, it is the world like second
largest chip-maker after some song. It is all according to sources in
local media and elsewhere, that they have submitted an initial bid,
although the size of the stake has although the size of the stake has
not been decided. Toshiba needs to raise funds to offset a
multi-million dollar write-down it has had on its American nuclear
power business. Both spokespeople from both companies have not
commented on the specifics of the process, but analysts say that Hynix
would benefit from Toshiba's technological know-how. Their
products are used in long-term data storage. Demand for these chips has
risen sharply, mainly due to the growing need for quicker processing
of smartphones and other mobile devices. At the same time, Toshiba
is planning to stop building nuclear power plants, after incurring liens
of dollars of losses. Overnight, the US and Asian
markets were down. The Dow was pulled down
by a fall in oil price, while markets also continue to wait
for detail on Donald Trump's And that uncertainty over Trump
was also one of the factors causing the Asian markets to fall,
yen and gold rising as investors There are also concerns
about the upcoming European elections, so let's see how
the European markets are doing. They have been open for four minutes
-- 40 minutes. And Samira Hussain has
the details about what's ahead Company earnings continue today. The
largest American auto-maker General Motors will report. America's auto
industry has received a lot of attention from the president. He
wants to see more jobs created here in the US. We can't be sure that
their earnings, which are expected to cap a record year, could get some
attention from the commander-in-chief. Walt Disney will
also report earnings, it seems the success of its latest animation
movie will help revenues for the quarter. But the last few months
have not been too kind to them, it has not had that many put dusters.
Investors will be paying attention to the sports network ESPN, which is
the real cash cow for them. And Rachel was sinking Let It Go!
Can you do a rendition? Nobody needs to hear that!
Joining us is Jeremy Cook, who is chief economist
I have not seen the letter macro frozen! I have three boys, but I
managed to get one of them to watch it!
Something we must not avoid, how China is propping up its currency.
It is burning through its currency reserves. It has three Delian
dollars of reserves. -- $3 billion. -- $3 trillion. The Chinese currency
has weakened a fairly dramatically. A lot of fears are bound the Donald
Trump presidency, whether he calls China a currency minute later, as he
threatened during the campaign. With increased outflows, people moving
money out, we have seen the people. I could China stepping in and
burning through money that they may have in reserves to make sure the
currency stays stable. It is subject to keep an eye on as far as
international trade businesses go. They need to make sure they are
protected against that. We mentioned on the market is the French market
is down slightly. The markets have been burned by politics repeatedly
in the last year. French elections coming up, the markets feeling
pretty wobbly. We had a big speech from Emmanuel macron last night.
From toffee the has issues around nepotism and his wife taking a job
from him. Marine Le Pen is still in the lead as far as the first-round
poling goes. We have seen in Asia in the recent weeks concerns around
what happens with this election, whether we start to see further
pressures on the euro. There is political risk, because we have
France, the Netherlands and Germany, and Germany, their industry or
production numbers are quite bad for January. They were down about 3%,
the worst number for a fair while, and also a recent poll suggests
Angela Merkel's party are now second in the polls. It will be an
interesting year for Germany. A lot for markets to keep their heads
around. Jeremy, you will tell us when you were last in a telephone
box later! Still to come, we'll speak
to the man turning social media into popular media as we get
the inside track on how news stories You're with Business
Live from BBC News. The Government will be setting out
plans later today to tackle what they're calling England
and Wales' broken housing market. The Government says 250,000
new homes are needed each year and have admitted
they are lagging behind schedule. Ben Thompson is at a house
factory in Alfreton. Sorry, this is then earlier, who
shared some news on that story. Our prefab homes the answer to our
housing crisis? They say so. They build these things in less than
eight weeks, from start to finish. What do they look like? On the left,
the toilet, the stairs, this is one of the bedrooms, and here you get
the kitchen. What is different is that everything is done right here
in the factory. The fridge is already installed, there is a
dishwasher with all of the plumbing, the oven and the hob are in. This
house is good to go as soon as it leaves the factory, it just needs to
be plugged in. Is it enough to solve the housing crisis? The Government
set a target of a million new homes by 2020, building a 300,000 every
year. At the moment we are building less than half of that. Today the
Government is unveiling a housing White Paper, with rules and
regulations that will encourage the house-builders to get more homes
built. Will it be enough to help drink down prices that have meant
many people cannot get on the ladder at all? We will find out if and when
the house-builders start building more homes.
I thought we were going to talk to Ben live, I am a bit disappointed!
We are missing Ben. Good news from Hornby. They have had
a rough time for some time. Their turnaround plan is on track.
Again! Picking up steam! For your revenues will still go down
slightly, but they have sold their site in Margate for ?2.25 million,
and they think things will get better for them. They have been
struggling, because the demand is going down, but also the weakness of
the sterling has hit the company hard, they have been battling with
the weakness of sterling since the decision in June last year to exit
the EU. You're watching Business Live.
Our top story: The oil giant BP
has seen another sharp It made $2.6 billion in 2016
which is less than half of what it made the year before as it continues
to struggle with low oil prices. A quick look at how
markets are faring. BP is a big factor for the FTSE 100.
At the open of trade BP fell down around 2%. The FTSE is the one
market with its head above water. Germany and France down slightly.
How can you tell if a story is going to go viral?
It's not all about the entertainment value - increasingly companies
want to track what consumers are saying so they can identify
the content that's most effective for their business.
For those in the know it's called "social velocity",
a formula of the tweets, shares, likes, comments and other
One firm harnessing that technology is Dublin-based NewsWhip.
It's analytics software processes millions of news stories every day,
from videos to social media posts in more than 60 countries,
predicting which will grab those eyeballs -
NewsWhip now has more than 320 clients globally.
Customers include media firms,
such as Associated Press - us here at the BBC -
Buzzfeed and the Guardian to big corporate brands including Reebok,
Well, we are joined by the companies co-founder
and Chief Technical Officer, Andrew Mullaney.
Good to have you on the programme. Thank you for having me. I know here
at the BBC we're obsessed with what NewsWatchers are looking online and
what digital video they're downloading and why and how many
shares, how many likes, that information is what you provide?
Absolutely, yeah. For the first time we can really measure what people
care about in real-time. So, that's what all our customers use it for is
to understand what type of content engages people on social media. This
is something you were providing this information to consumers, but you
flipped to provaid a service to businesses. Was that purely based on
financials? Not really. We noticed that the journalists and the media
creators were using the free service way more and that they wanted much
deeper features. So we decided to concentrate on providing for these
people and of course, there was a financial benefit as they can pay
whereas most newsreaders are free. So what caused you and your
co-founder to start this? Why did you think of this business in the
first place and it is dependant on your technology, isn't it?
Absolutely, yes. Paul started out creating normal news and noticed the
difficulty in trying to make money online so we were both involved in
start-ups at the time and we were discussing ideas and I said well,
maybe consider trying to figure out the good stuff. There was so much
stuff out there and he noticed the journalists were obsessed with the
social numbers of their content and that's where the idea came. He said
why not try and get the social numbers for all content out there
and see what happens and that's where it started. Now, you cover 60
countries. I'm interested to know how do you work out what people are
going to be more interested in because you also try to predict it.
So is there a story that has global appeal or do you find certain
countries are more into sports stories or human stories? We're
measuring these huge amount of data signals, but it is all about human
engagement and there is a human being behind all of these
engagements. So the types of content that can do well for example are one
we saw the other day which was this kid that got lost in Canada in the
freezing cold and fell approach sleep in the snow and his dog came
out and lay on top of him to keep him warm and kept him alive. This
did very well in this local area and got grabbed by the bigger media
agencies because it is a beautiful story.
The bigger media agencies, people like the BBC who pay for your
services, what is it that they're getting out of it? You're telling
them well this story was really important, are you expecting those
companies to make decisions about where to put stories on their
website in order to get more online users? Absolutely, yeah. To
understand everything from, you know, what type of headlines you
use, what length of video, what type of words do you use, you know, which
stories are of interest and also maybe where to concentrate their
journalists because now they can tell in real-time where the
engagement is. So what's going to be next on your radar as it were? I
would imagine when you started out, when did you start this company? We
started five years ago. I imagine there were not many other companies
like yours with this technology, but they are all catching up fast. So
how are you going to diversify? For us, it is to continue growth. We
have 50 staff. 15 of which are in New York and we launched our new
analytics product. We're excited about that and we're just going to
continue serving up the best content to the story tellers of the world.
Andrew, we appreciate your time. Fascinating, especially from our
point of view. Thank you very much. Cheers.
Today marks the 25th anniversary of the signing
of the Maastricht Treaty, officially known as the Treaty
Back then there was a feeling of optimism and hope
about what the EU could achieve for the prosperity
Few would have predicted the financial and political
challenges the Union would come up against a quarter
Andrew Walker's been taking a look back in time.
Maastricht 1992 and a blueprint is agreed for a new and deeper
programme of European integration. It was here that the euro was
conceived. This was a moment of hope and optimism at least for European
political leaders. A quarter of a century on, the EU is
blue and yellow's flag looks tattered. We've had arguably still
have, the eurozone financial crisis, one important member state, Britain,
deciding to leave and the rise of anti-EU political groups in several
countries and perhaps a chance that they will take power this year in
countries that were founder members of the European project, France and
the Netherlands. And now the election of Donald Trump to the US
presidency creates new and unpredictable challenges for
uranium. He doesn't seem to think much of the EU. He said the British
decision to leave was so smart. He has certainly rattled Brussels. The
President of the European Council Donald Tusk wrote to members saying
the changes put the EU in a difficult position. Maastricht was
intended to create a congealial environment for business with less
uncertainty. It feels like a long time ago.
The iconic red telephone box gets a redesign. It is 90 years old, the
old phone box? So, instead of people using it just for calling someone,
you can use it for maps. You can use it browse the internet. It is now a
wi-fi hotspot. Well Will that cause a resurge in the use of the phone
boxes? I would imagine they are hardly ever used. Most are
vandalised? I would use them to get out of the rain or hide from someone
on the street! We have had quite a few tweets. Some
people saying, "I can't find one." Ian said, "It is 20 years since I
used a phone box." Ian said he used one in 2007 when his Nokia died. The
question is will there be a resurgence in the use of the phone
boxes? I don't know if there would? If your mobile phone doing
everything from your banking to travel, to your whole schedule, I
doubt people will want to tie themselves down to a phone box. The
only thing I see is people having selfies, they want that photo of the
red phone box. Let's move on. Other stories in the press today. We've
got a flying car. I love this one. What do you reckon. Would you get in
one? I would get in one, I don't think I will see one in my lifetime.
I think it is Jettison stuff. If they could work on the cars at the
moment. They have got a Nasa engineer? It seems like another way
of Uber to burn through investors cash. I love the idea, but I'm
scared of heights! An interesting story in the Guardian
about Bermuda which has been sort of slated as a tax haven in president
press. Bermuda saying that the UK is a tax haven because people aren't
here for the weather? No, we're not. I'm certainly not. Are you here for
the tax haven? I'm here for the quality of life let's put it that
way. The UK has the most billionaires living in it especially
London as a city and the ability for non-doms and we haven't really
talked about non-doms in the UK for many, many years, non-doms to not
pay tax in the UK has made sure it is a beneficial regime for them to
live under. The non-dom rules are changing in April? They are set to
change, but I think this is Bermuda firing back to say obviously don't
slate us when you have your own beneficial rules and I think there
is a bit of post Brexit anger there given the impact on the
Commonwealth. Thank you, Jeremy. Thank you too for your company. We
will see you tomorrow. That's it from Business Live. There will be
more business news on the web page and on World Business Report.
Bye-bye. Hello there. Cloud and rain that
affected most areas overnight has now cleared away for the vast
majority leaving a mixture of sunshine and showers through the
rest of today.