07/02/2017 BBC Business Live


Similar Content

Browse content similar to 07/02/2017. Check below for episodes and series from the same categories and more!



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.


Download Subtitles