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This is Business Live from BBC News with Ben Thompson and Sally Bundock.
Major producers consider another plan to boost prices.
Live from London, that's our top story on Monday 27th March.
Swollen stockpiles are depressing oil prices but what can Opec
and non-Opec members do now and what did they discuss
We will tell you all you need to know.
A record fine for BT with the firm setting aside hundreds of millions
of dollars for delays in installing high-speed lines.
This is how the European markets are looking. It's a big week for pound
as divorce proceedings with the EU are kicked off in London.
And we'll be getting the inside track on how demand
for luxury goods from Britain is being turned into an upmarket
In the wake of the story that two girls have been grounded
by United Airlines for wearing leggings we want to know has
Or is it reasonable for an employer to dictate the dress code
Let us know using the hashtag BBCBizLive.
Lower oil prices might be good for consumers -
it keeps energy prices down as well as transport and
But it's not good for oil producing nations.
And this weekend, many of them met to discuss what they can
When supply falls, prices tend to rise.
Oil prices rose sharply when producers agreed to cut
production in November - and whilst prices held up
for a while there's been a drop of around 10% in the last few weeks.
And that can have a huge impact of the economies of oil
Many rely on the money it brings in to fund government spending.
The biggest OPEC producer, Saudi Arabia, wants $60 per barrel.
Well, there's been an increase in global reserves of oil.
The US is the world's biggest consumer and last week it's
The US is the world's biggest consumer and last week its
stockpiles of crude oil hit 533 millionbarrels.
There's also renewed pressure from US shale oil producers
As you can see here the number of active US rigs drilling for oil
Iain Armstrong is an Oil and Gas Analyst at the wealth
Good to see you. Give us more detail about what we have learned from the
weekend's meetings. What we have learned is that they still need more
clarification on the accuracy of the numbers coming through. With regards
to the Opec numbers, we know in February Opec has done a good job in
terms of compliance but the non-Opec members of the 21 who signed up
haven't done, they're only 64% compliant. So they've got to do
something better before something can be changed with regards to the,
either extending the agreement, or actually as even suggested maybe
increasing the production cut. What do you think is likely to happen?
They'll meet fully in May, obviously this current deal that they agreed
in November is in place until June. Is it more than likely they'll
extend the period of time for the production cuts they've in place at
the moment? It's going to depend on a few things. One of the most
important things is the rate of demand, increase in demand. We are
now getting into the main demand season, particularly in the US. As
Ben pointed out, there's been a large increase in the crude oil
inventories. The other side of that coin, though, is there's been a
sharp fall in the level of distilate for diesel and gasoline inventories,
so going into the driving season it's slightly, it's more complicated
than the crude numbers would suggest and if we do have a decent driving
season then the level at least of the US inventories will drop. If you
can take that across the globe, then hopefully also the level of global
inventories will drop, probably by the third quarter and that's what
the Oman Minister was saying. I agree with him. That's why I think
when we come to May they'll probably say let's do it for nor six months.
Also, something that has shifted that Ben pointed out is the increase
in production in the US in terms of Shea production. That's something
that Saudi Arabia has been watching very closely -- shale. It's
something they hoped may not be such a big threat in terms of a threat to
their income in terms of the price of oil. Again it's more complicated
than just it looks like the numbers, the increase in the rigs is a good
start, but you have what is called drilled but uncompleted, and there
is a lot of those rigs, without getting into too much detail, but
you buy a lease in the States. If you don't drill on that lease you
will lose that lease. What you do is you drill on that leez just to make
sure that you deep the lease. So a lot of the number that's been
reported is not necessarily going to turn into production. There will be
higher production this year and definitely in 2018. But it's not as
clear-cut as the rig count would suggest. All right, thank you for
your time. As ever, the devil is in the detail on this. We will try to
keep you up to date with any developments that will affect the
price of oil. It's worth saying US light crude is $47. 5 a barrel.
Brent is 50, just shy of 50. They're both down. Worth keeping an eye Back
On Top -- on worth keeping an eye on what happens as a result of that
meeting. Delays in installing internet
connections are expected to end up costing the UK telecoms firm BT
more than $420m. The company installs wholesale
services for rivals and most of the payments will be
compensation to them. The regulator Ofen has also issued
a $52m fine which it says Tens of thousands of people in Chile
have taken part in demonstrations calling for the government to scrap
the country's controversial Critics say it benefits
the administrators and the wealthy but leaves poorer Chileans
with a final pension There is more to read about in terms
of business stories on our website. BT shares are falling today in
London. A few companies are falling in London on the FTSE 100, we will
talk about that. Before we head to Asia, a story here discussing MTR,
it's been awarded the franchise for Crossrail, the trans-London line. It
has also been awarded the south-west trains franchise F you are watching
outside the UK you may not know that there's so much debate about who
runs trains in this country. Lots of delays and strikes and lots of
problems of late on a number of different franchises. Quite a
significant moment. MTR runs the Hong Kong Metro. And we are going to
head there now. The first woman elected as leader
of Hong Kong has vowed to heal divisions amid demands for more
democracy and protests at mainland Carrie Lam had the backing
of the Chinese government But what do businesses
make of the territory's Bring us up to date because it's
interesting when you talk about what business there wants and what they
want in the territory, have they got the right woman? Well, they
certainly think so, even before yesterday's vote we had a number of
tycoons here in Hong Kong coming out publicly in support of Carrie Lam,
she was selected by a economy of 1200 people, less than 1200 and many
she won such strong support it's she won such strong support it's
clear the business community supports her. There are issues,
though. The issue is that over the last few years she has become a
polarising person, a politically divisive person. She was the one in
charge of pushing through a political reform package that was
unpopular and eventually led to the 2014 protests which paralysed the
city for weeks. Now she is the chief executive-elect we are expecting
more protests. At least one political party has said they intend
to start another civil disobedience movement in July when she takes
office. We will keep a close eye to see what difference that makes,
thank you very much. Let's stay in the region there.
Toshiba's loss-hit US nuclear unit could be placed under bankruptcy
protection as early as this week, a report said Monday,
The company has now lost more than half its market value
since late December, when it warned of
multi-billion-dollar losses at Westinghouse and said
it was investigating claims of accounting fraud by senior
In the US, the decline in US stocks last week was the biggest one week
decline since the US election, some say it reflects
concern that the optimism about President Trump's promises
It's a big week for the pound as the UK government prepares
to start the divorce proceedings against the EU.
It fires the starting gun on the process by triggering
This could well prompt some sterling weakness in the short-term.
More on that in a moment, but first to the US and the day
This is the last week of March and what will dominate is manufacturing
data and consumer surveys. What will be most closely watched is consumer
spending numbers which come out on Friday. Two-thirds of the US economy
depends on consumer spending so this is an important number to keep in
mind. In January, consumer spending was up 0. 0.2% and investors are
expecting a similar gain for February. On Wednesday, the
congressional budget office will release its analysis of the
budgetary changes to spending programmes and the tax code proposed
in the President's budget and on Friday, BlackBerry will be reporting
earnings. The company is moving away from smartphone hardware to
concentrate on software and analysts will be looking to see if it will
pay off. Trevor Greetham is with us
from Royal London Asset Management. Good to see you, how are you? Very
well. How are you? Very well. Now you have been scribbling notes ever
since you arrived, writing on that little piece of paper, it's going to
be another very interesting week for markets. We saw a shift last week in
terms of sentiment on global markets and you feel it's carrying on. Yes,
this is the first period of turbulence really we have seen in
about a year. If you think about the stock markets, they've risen very
broadly over the last 12 months. Sailed through Brexit, they sailed
through Trump's election victory. Both of these things meant more
stimulus from central banks. Now they're at the point where growth is
strong and prices are quite high, and the concern is if Trump can't
get Obamacare repealed, how can he get tax reform or further stimulus
through? The markets are starting to say maybe we get Trump without the
good bits. It was late on Friday when it unravelled. The Obamacare
issue, I mean. Most of the markets were closed, they're following
through today. I think the real question is is there enough growth
in the world to keep stock prices rising and enough stimulus to keep
them rising? It's interesting to hear about the oil price staying low
at the moment because you are likely to see inflation fall in the second
half of the year, if the oil price stays where it is. That will mean
central banks will feel it's OK to keep the juice flowing for longer.
It's fairly positive, but there is some turbulence. And turbulence
could come on Wednesday. We begin officially the divorce proceedings,
Article 50 is triggered we are told on Wednesday. Again it's a same sort
of debate, nothing changes particularly in the short-term. But
we start to get an idea of the longer-term, is that the point? I
don't know if even we will get the longer-term, the markets know about
Article 50 by now very well. They know about the triggering of it this
week. What may be new news is hard to predict is the kind of
relationship and the way the negotiations start. I think there
are lots of reasons to think there will be periods of turbulence again
in the currency markets over the next few months, particularly with
this focus on the so-called divorce bill which the Europeans want us to
sort out upfront. So watch out for the stock markets wobbling in the
near term and watch out for potential downside on the pound.
There will be more scribbling for to you do on Wednesday. Thank you very
much. We'll be getting
the inside track on how British afternoon tea has become part
of an up-market hotel You're with Business
Live from BBC News. BT has been fined ?42
million by the telecoms regulator Ofcom for delays
in installing high-speed lines. It is the largest fine
the regulator has ever imposed. It comes after BT's Openreach
division cut how much it paid telecoms providers for delays
in installing lines Joining us now is Gaucho Rasmussen,
Director of Investigations Thank you for being on the
programme. Good morning. This is the biggest fine to be handed out so
far. Tell us what BT has been doing? Well, this is the biggest fine
because it relates to a very important part of the UK economy.
This is the backbone of our digital network. BT was found to have
breached this contract with some of its customers and other telecoms
providers and other providers such as Vodafone and TalkTalk by the way
it rolled out the broadband lines. They should have given appropriate
notice in a reasonable time frame so people knew when the lines would be
rolled out so if there is any delay and if there is delay BT maybe
obliged to pay compensation. We have found that BT did not pay the
appropriate amount of compensation because of the breach it engaged in.
Clearly, we know that Openreach will be split off from BT, it creates a
new legal entity and one that many of the competitors have welcomed.
How significant is this in light of that? I would say the investigation
relates to historic conducts and so that was then and Openreach
arrangements where BT basically have met all our requirements in full is
a forward looking change that we think will proindividual a robust
and independent Openreach to serve all its customers well. OK, it is
good to talk to you. Thank you. The ?42 million fine imposed on BT.
BT has changed. It says we have put our problems in order. Adding there
has been real and tangible change at BT.
BT shares are down 2% in London. No surprise.
Our top story, major oil producers are considering
A quick look at how markets are faring.
Not a good start to a brand-new trading week. London bearing the
brunt. Many mining stocks are down. Energy stocks are down. BT is down.
Not much headed upwards. The gold price is. People are coming ot of
anything risky and going into anything safe. Have you been
shopping this weekend? Is that why? No. I have not boosted the price of
gold on my own. I wish I had that power!
Now let's get the inside track on the growing demand
for quintessentially British luxury from the rest of the world.
It is something our next guest is hoping will help her hotel stand
The Middle Eastern state is one of the seven United Arab Emirates
which have become one of the region's most important
Dubai Department of Tourism says more 14 million
visitors come to its shores every year.
On average each visitor spends $140 a night on accommodation.
Out of Dubai's 681 hotels 96 are five
stars and have an average occupancy of 77%.
I'm joined by Debrah Dhugga, Managing Director
Welcome to the programme. So you are moving what is the Dukes Hotel,
you're replicating the Duke's Hotel in London, it is a very British
established iconic brand to Dubai. Why Dubai? That's correct. Duke's,
London, 116 years old so a lot of history to it and the locals, the
UAE market actually adore anything British. So in Dubai there is a lot
of glitz and glam and a lot of great hotels. A lot of stunning hotels,
but there is nothing quintessentially British. We were
looking to take and expand our company with Duke's brand and we
looked about where we would go, where isn't there that
quintessentialle British market and Dubai is one of them. We talked
about occupancy rate. It is interesting if you go to Dubai, I
know Dubai well having been the correspondent there. There is so
many hotels, you can't move for hotels and they have got an
ambitious target to build more. Your competition is changing by the day.
New hotels are open, more occupancy, how do you get people in these
rooms? How are you going to fill the rooms? Dubai Tourism do a great job
in really promoting Dubai as a destination and they continue to do
that. There is a lot of money invested into Dubai itself. We have
just had the new parks open which is great attractions. So it's
constantly growing. There is constantly something new happening
in Dubai. So someone who visited Dubai five years ago, they would go
there and say wow, look at the changes. Great changes. There is
always something happening. It is not a destination people tend to go
once, and if they go back there is something new for them to
experience. Who are you hoping will walk through the doors of your
hotel? You're not looking for the British tourist, Rupert Murdoch's I
assume, or are you? Or are you looking for the more local tourist
because you're selling that kind of British experience as it were? It
will be both. We will have a big following from the Brit market. I
mean the UK is one of the biggest feeding markets into Dubai itself as
a holiday destination. Followed by closely by the Asian sector, and
Germany. So absolutely, we will have a big UK market. There will be a big
British audience going into the hotel. But as well, the local
market, local market come to the UK to experience a traditional
afternoon tea. Anything British, you know, fish and chips, anything that
sort of is just going back to our roots. Bangers and mash? Absolutely.
Those are the some of things that are offered on our menu. It is all
about offering that greater British experience. So those are the people
who will stay in itment talk us through who is going to work in it.
In Dubai most of the hospitality industry is made up of ex-pat
workers or parts of Asia or indeed from the UK and Europe. What mix do
you have? I know you're passionate about getting yng people into the
industry? With regards to the recruitment drive. We started our
recruitment drive about 18 months ago which is out of the norm when
you're opening a hotel. Wanted to bring fresh energy and new blood
into Dubai rather than just bringing people from other hotels. That
British experience is really important. So we have taken people
over from London who are actually, who know that British experience,
our executive head chef is from Manchester for example. So he has
worked around the world, but we've brought him back. One of our head
chefs who is running one of our destination restaurants, has come
over from Ireland. So we've got a great mix of nationalities within
the hotel. Deborah, we appreciate your time,
thank you for coming in. Thank you for having me. Thank you very much.
There are predictions that many jobs carried out by humans will be taken
by robots. A glimpse of the future is on show in San Francisco where a
robot is turning heads and coffee cups!
With Cafex we tried to create a product that would allow people to
get speciality coffee consistently and do that every day.
You're not a robot. Once again encrypted messages and in this case
whatsapp because of what happened in Westminster and the man who was the
perpetrator on whatsapp before? Boris Johnson and am burd Rudd said
the Security Services couldn't get access to the messages on the
attacker's phone because of whatsapp and whatsapp is encrypted end to
end. You remember the fight that Apple had with the American
authorities about the unlocking of an iPhone which went on for months
and months. This one will run and run. These Silicon Valley companies
are under attack for encryption. More online. We will see you later.
Bye-bye. Good morning.
What a lovely weekend it was. Most parts of the