02/05/2017 BBC Business Live


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Hello, this is Business Live on BBC News with Sally Bundock and Ben


Thompson. Back in the black. Oil giant BP is


making profits again after two years of heavy losses, is it thanks to


higher prices and lower production? The top stories on Tuesday the 2nd


of May. BP boosted its coffers


with nearly $1.5 billion, the third oil giant to beat


expectations in a week. So is big oil over the worst and has


it managed to survive Greece agrees a deal


with its European creditors on more reforms, but can it lead to debt


relief for the Eurozone's European markets looked like this,


BP's shares rising nearly 3% on that news of a return to profit. Also in


the programme. We'll be getting


the inside track on. How you turn one massage and spa


centre into an international As the head of the World Bank


forecasts a dramatic rise we want to know what could


it mean for your job. One of the world's biggest


energy companies, BP, has just announced its latest


results for the first And as expected it's delivered


much better news thanks to the rising price of oil


and some effective restructuring. Using the oil giant's preferred


measure of underlying replacement cost profit,


the first quarter of the year came in at $1.4 billion,


a healthy improvement on the $485 million loss it made


the same quarter last year. This year BP plans to sell


off around $4.5 billion worth of assets as part


of a global portfolio overhaul. Details we know on that so far


include last month's announcement that its selling a 50% stake


in a Chinese petrochemical business to Sinopec,


and it's agreed to sell the North Sea's largest


pipeline to Ineos. But BP has been buying assets too -


building up its natural-gas business, and this year it's made


acquisitions in Egypt It's also spent $1.3


billion on 527 fuel Bob Dudley - it's Chief Executive -


has been praised for how he handled the Deep Water Horizon disaster


and navigated the massive fall in the price of oil -


still that was not enough to counter the critics who last year


said his $11 million salary was far too big given


the multi-billion dollar losses the company delivered


in the last couple of years. Sally. We can get more analysis from


editor Simon Jack. Just say, the pay came down from 19 million, 11


million was the final number. Let's talk about the profits news to start


with, better results from BP. Does that indicate the worst is over? As


ever the devil is in the details. There are some pretty simple things


going on, the price of oil during the period we are reporting what is


40% higher than a year ago so one thing. As ten said they have cut


costs, so higher revenues, lower costs and bigger profits. Don't


forget the impact of the sterling fall because BP makes its money in


dollars and translates those dollars back into pounds when you see its


profits put in sterling terms. For all of those reasons BP is doing OK.


No one really knows where the oil price is going. It is a difficult


thing to navigate. We know it will not go up to $100 a barrel, most are


certain of that, aren't they? The truth of the matter is BP must get


to this new normal like its peers. They have to get used to this


aggressive cost-cutting because this is the new normal. Projects went


off-line when the big oil price fell but some analysts think there could


be an increase in 2018, 2019 but not $100 per barrel. Then just talked


through some of the issues, they are selling assets, they have got lean


and mean. It is a very different company. The whole shake-up has made


BP, Shell and all of their peers look at the company hard. The


massive fall from $117 down to $25 almost, they had to look out which


areas they wanted to be in. What is interesting as it goes to show how


dependent you are on the oil price when you are making your money. The


weird thing is that when they had the big shareholder revolt against


Bob Dudley's pay last year, they lost lots of money, $3.5 billion and


he got paid 19 million all told, this year they've done better and he


will be paid less. That shows either they are listening and they are


sensitive to the outrage over executive pay, to others who will


say it just goes to show how difficult it is to connect


performance and paid when it comes to setting these reward levels. A


quick word about the future because clearly the oil prices stabilising


somewhat, still not back to where it was, but what does it tell us about


the admissions of these firms going out to look for reserves? They are


doing it in a lean away, they have plans to develop Australian


development. They have sold off some North Sea reserves which is a


declining market but they will invest in new sites they think will


come on line down the road. Everyone is sharpening their pencils. In the


old days, they would go and digger hole Ntsila happens but today they


have to have a diversifying portfolio. He has a 40% pay cut this


year, we will see if that takes the sting out of the shareholder


rebellion. 69% of shareholders voted against his pay last year, we will


see if he's done enough. And the AGM is not far away. It is in a week or


two. Let's take a look at some of


the other stories making the news. The Australian government has


announced it will build a second It comes more than 70 years


after the idea was first conceived, and follows promises


from successive governments. The airport, set to cost


around US$3.8 billion, will be located at Badgerys Creek,


50km west of the city's centre. The current Sydney Airport has


become increasingly stretched amid increased demand


in recent years. The flying kangaroo taking you to


Badgerys Creek! LAUGHTER


China's factory sector lost momentum in April,


with growth slowing to its weakest pace in seven months.


The purchasing manager's index dropped to 50.3


in April from 51.2 in March, indicating a slower


However, the index shows the sector avoided a slowdown


Any reading above 50 shows expansion of manufacturing activity.


Twitter is working with media firm Bloomberg to create a 24-hour


rolling news channel for the messaging service.


The live video stream will be made up of original


programming as well as feeds from Bloomberg bureaus.


The deal builds on the live-streaming deals Twitter has


done with others that spreads content via the social network.


Let's take you to the United States because we are following the


writers' strike in the US, some of our best-known TV shows could be


facing a hiatus while the writers agree a deal. We will talk about


this late in the programme because with the rise of things like Netflix


and Amazon Prime and other streaming services we are not short of TV to


watch but the amount of money those writers are getting for getting


dumber coming up with those TV shows is falling sharply.


That really is a brighter's block! A recovery operation is under way


after an accident at a Samsung shipping yard in South Korea left


six dead and many injured. Leisha Chi is in Singapore


with the details. Explain what has gone wrong here. We


have the Samsung conglomerate in the headlines again for the wrong


reason. Their shipyard has seen all production halted after two cranes


collided on Monday causing one of them to break and collapse on a


workers' rest area. Six people were killed and we understand more than


20 people injured. Police described the scenes as chaotic and rescuers


are still searching for people trapped under all of the debris. We


also understand the victims are subcontractors, they were building a


$500 million ocean platform for the French energy giant Total. This


incident is quite shocking for South Korea because the country has a


history of very low industrial accidents. Samsung's company


President of the shipyard has apologised and said he believes the


accident took place because of a miscommunication between the crane


drivers and signal people. But the exact cause is still under


investigation. Thank you for that update, Leisha Chi, from Singapore.


The Nikkei is up on Tuesday before a series of holidays in Japan so don't


expect much movement over the next few days. Boosting the fortunes for


exporters. From the United States, the rhetoric from the White House


suggesting tensions may finally be easing with North Korea. That is


certainly one to watch as far as the markets are concerned. Let's show


you what is happening in Europe, BP's share price boosted the wider


market but we also think that deal has been agreed with creditors over


Greece's debts. We will discuss that more in a moment but that is likely


to boost markets because the debt crisis rearing its ugly head once


again as far as Greece is concerned and that really concerns investors


elsewhere. We will talk about that more in a moment but first to the


United States because Samira Hussein has details about the trading day


ahead at Wall Street. The Federal Reserve


begins its two-day meeting


on interest rates on Tuesday. The policymakers will be issuing


a statement at the end of the meeting with their assessment


of the US economy and most crucially whether they vote in favour


of a rise to US interest rates. On Tuesday the world's largest tech


company will be reporting earnings and all eyes will be on Apple's


iPhone sales for the quarter, Investors clearly have


high expectations. The stock price for Apple hit


a new record high in And also reporting,


pharmaceutical giants The big story for Pfizer


is that a few of their patents are about to expire


while Merck has a cancer drug significant growth driver for the


company. Interesting, so a lot to talk about


in the United States, Samira Hussein will be on the case when it comes to


Apple etc. Joining us is Kathleen Brook,


research director for City Index. It is a busy time with Apple


earnings and BP etc. One thing we wanted to talk about was Greece,


coming through in the early hours of the morning that finally a deal on


new measures and new reforms meaning they get much-needed funding. This


has been going on for absolutely years. They are trying to extend the


pension age. Make people older before they receive their pension,


trying to sell off state assets, coal mines, power plants and that


kind of thing. This still needs to be agreed by the Greek government.


What I think is interesting is the Syriza party still in control, the


far left, even they have got to grips with the reality of the


financial situation. Greece has a massive payment to its lenders


coming in July and needs its money now so we are really down to the


wire. Reading a sigh of relief because it kept going beyond the


deadline last year. Let's talk about a couple of stats because we have UK


manufacturing, PMI, and Eurozone unemployment, snapshots of what is


going on but it paints a picture of things on the mend? Certainly in the


Eurozone. Their data has surprised expectations, it is outpacing the US


and UK. Their first-quarter growth released this week is expected to


show the Eurozone grew at a stronger rate than the US and UK in the first


three months of the year. If we get a weaker PMI for the UK that will


show alarm bells because we saw a slowdown in GDP for the first


quarter, that is backward looking, this is a snapshot of now. If we are


still weak going into the election, could that have implications? We


will have to see. What are your thoughts on President from's


comments on big banks on Wall Street? A throwaway comment in a TV


interview when he said, I'm thinking of separating their consumer


business from their investment banking business, and that meant


stocks went all over the place on the marketplace. That is


contradictory to what he said in January when he said he would scrap


financial regulation to make it easier for these big banks to make


money. Yes, there is a liability when it comes to President Trump


about what he says and what impact that has on the markets but it also


shows there are two imposing influences, the Republican Party


want to see regulations scrapped but his electorate, the people who voted


for him, don't like the big banks and want them broken up so he's


balancing a fine line and sometimes he's not getting it quite right. The


throwaway comments coming from Trump. They keep us busy! We will


see you in a minute. Kashiling will be back later. -- Kathleen.


We meet the Singaporean entrepreneur behind


You're with Business Live from BBC News.


That's what the British Chambers of Commerce is calling


It's published its manifesto, titled - Brexit and Beyond -


in which it also calls for clarity on what the UK's departure


Mike Spicer is director of Economics at the BCC -


Good morning to you. So, they are asking for clarity,


asking for no more taxes. How hopeful are you that you will get


either? What we really want to do is to


reinforce the fact that for many businesses, although Brexit of


course is very important and getting a good deal is important, decisions


that are made around domestic policy matter as much if not more. As you


said in your earlier piece, we have just had a weak quarter of GDP


growth and one of the major components of that story was the


upward pressure on prices and the effect that has on consumer spending


and investment. We think there are many things the government can do


starting with upfront costs that businesses paid, businesses do rates


and so on to free up businesses to investigate. You will probably get


very little in terms of promises from Theresa May because she said


she will not make specific proposals on taxes. We have already heard some


things over the weekend about VAT and so on. We are still hopeful that


there is room for manoeuvre for the government after the election to be


able to act on those upfront costs. It has made some movements in that


direction over the past year but we need it to go further. Businesses in


the UK pay the highest property taxes in the developed world. That


can't be consistent with the competitive tax regime. In a period


of economic uncertainty when we really want to create a great


environment for businesses to grow and invest. For now, we have run out


of time, thank you for your time, Mike Spicer, director of the colonic


Sabha British Chambers of Commerce outwith its manifesto today, with


hopes from the various candidates. We have the economic data coming in


dropping in in the last few minutes. Revenues up and shares down, the


online delivery app and takeaway firm says revenues were up by 46%,


orders in the UK up by 17%. But as the headline suggests, whilst they


are doing well it has not impressed shareholders.


Keep NI on Just eat, something with kept an eye on in the business unit,


its results have been but not enough for the markets today.


BP shares are rising sharply after the British oil giant returned to a


profit for the first three months of the year.


All of that helped by higher oil prices. The company reporting $1.4


billion. A quick look at how


markets are faring. has a fairly hefty weighting. That's


a snapshot of how things are going with. We're almost into 50 minutes


of trade so far in Europe today. While the global economy may be


showing signs of fatigue, the health and fitness sector is one


area that continues to go According to a leading research


firm, the so-called wellness industry is benefiting


from an emerging Revenues are forecast to grow 6%


between 2015 and 2020 and one company which is hoping


to benefit from this The business was founded in 1996


by one of Singapore's best known entrepreneurs,


Cynthia Chua. The group now has outlets in London,


Shanghai and New York. Sharanjit Leyl caught up


with the company's founder over Thank you very much


for inviting us into your spa. We're going to get a manicure


while we do this interview. So, tell us a little bit about how


you got into this business. So, I had a really


short spell in banking. I felt that I didn't


like the nine to five job. It was really short.


I didn't like that. There were several options


I was exploring, it could be childcare, it could be wellness,


it could be day spa, so I contacted it and felt


it was OK it was something that


I would like to pursue and that's So when you first started


tell awes bit about some So some of the challenges


were like customer issues, business and corporation,


there was so many areas and aspects to starting a business, not just


mixing oils, holistic therapy. It was nice to have a combination


of different people and when I got into the business I was perhaps 23


or 25 so it was nice to have partners that


were like in their 30s, who have been in


company for sometime. So those challenges were kind


of looked into by them and then I get to focus on the fun


bits that I love to do. But you're also in other


cities beyond Singapore, you're in London, New York,


and Shanghai, multiple I think every city


it is very different. For example going to China,


you would think OK going to China could be easier than going to London


or New York, but it was not true, I had like such a steep learning


curve in China. The product registration


is extremely difficult. So just to get the products before


you could even have their products used in the saloon or for retail,


the guidelines were strict, So all this cross-country


intelligence and cultural thing that you need to know,


they were very, very different. You feel that something


is not suitable for you, That's very difficult and then


the compliance, in terms of taxation, accounting,


licensing of the beauty treatments, so there were a lot of things that


were very, very difficult and I always think that in every


city that you want it takes almost Someone said if you want to do


something really well, You go in with that passion


and I want to make London work. No matter what it is,


I will make London work. The problems will come,


but you tweak it, I'm creating a prototype,


but we will work initially, but how do you fix it


back and make it work? So I think every little step counts


and then when you get that Now, you ventured into London


in a big way just last year right before Brexit and we know


there is a lot of uncertainty about the UK economy, so how is that


impacting your future plans there? Well, of course, Brexit took


everyone by surprise. So yeah, so the beauty block


was really committed So with the Brexit, I wouldn't


say that it impacted a lot on my business,


but what I found disturbing was perhaps it creates


a lots of nervousness among the staff because there is so many


different nationalities that work in the cafe or the beauty tree


and they are worried they will be So there is a lot of uncertainty


and also with the currency exchange rate, it is quite


a substantial drop. Almost like 20% and


that's quite a bit. So that's there are pros and cons


because of the exchange rate and that can affect the business


in terms of purchase price So, we have come from your spa


to one of your restaurants just down the road which is quite


an unusual concept. But we're going to your


restaurant cafe now. From cafes to spas, what next? The


idea of having a farm in the city is something different. It is the


journey of how I got here. So every little step, you know, got me here.


Maybe we should have a manicure during Business Live!


Kathleen is back. The head of the World Bank is


pushing a terrifying prediction about jobs and it is all about


robots? Two-thirds of jobs maybe lost to ought owemation. We think it


might be bad in the UK, in the US Trump ran on that. The trouble is


the robots, it is not like for like. There is not another job being


replaced for the people displaced by the robots. The worrying thing of


what that causes, mass unemployment, can lead to things like the Arab


Spring. It does depend on how far does technology go? Will it continue


to expand at the pace it has? If it does, will any of us have a job


left? That's creating higher skilled jobs. It is getting rid of jobs, but


this is focussed on developed economies where the jobs are


relevant and needed? Where there is large populations that don't have


the skills that need to be gainfully employed, but this will lead to


things, an economic theme that's coming up is the national Living


Wage which isn't just national, this could be global Living Wage to pay


people if robots are taking over their jobs. That theme will get more


and more relevant as the years go by. The comments we had from


viewers, do you work with a robot, or would you do that. I feel I do!


Annabel said yes. Another viewer says, "We need to find a balance


between man and machine." But had is something we have been doing for


generations, the balance between man and machine. I want to talk about


TV. Netflix and Amazon Prime, loads of good TV? It is difficult to


choose. The trouble is now we're getting more series that have


shorter number of episodes. In the past episodes used to be like 22


episodes a season. Writers get paid per script. So per episode, but


these new shows that are coming on board take as long to film and


writers have are not allowed to take on work for the whole production


themement they are getting paid less, but not allowed to work


elsewhere in that period while those shows are getting shot. So they


could go on strike and the decision is today, isn't it? It is and we'll


watch it closely. We're out of time. Thank you, Kathleen.


Bye. Good morning. The sun was out to


start the day in parts


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