:00:00. > :00:08.This is Business Live from BBC News with Ben Bland and Rachel Horne.
:00:09. > :00:11.As US energy producers ramp up production, can the OPEC cartel halt
:00:12. > :00:34.Live from London, that's our top story on Friday 23rd June.
:00:35. > :00:45.Crude is down some 20% this year - despite OPEC's attempt to prop it up
:00:46. > :00:49.Also in the programme, we'll cross live to Asia
:00:50. > :00:52.where the world's biggest bank has moved to calm fears over the level
:00:53. > :01:01.It's caused some cautious sentiment on the Asian markets that flat lined
:01:02. > :01:05.up the end of their trading session. Here's the European markets at the
:01:06. > :01:08.start of Friday. And we will look ahead to Wall Street as well.
:01:09. > :01:10.The British Prime Minister offers to ensure the post-Brexit rights
:01:11. > :01:13.of three million EU citizens living in the UK.
:01:14. > :01:16.Later we'll have a wrap up of this week's big economic stories
:01:17. > :01:20.with our correspondent Andrew Walker.
:01:21. > :01:24.Research in The Daily Telegraph has found well-qualified people
:01:25. > :01:27.who voluntarily talked about their flaws in job interviews
:01:28. > :01:34.Today we want to know, what are your weaknesses?
:01:35. > :01:38.Being gay perfectionist is not allowed!
:01:39. > :01:40.Get in touch - just use the hashtag BBCBizLive.
:01:41. > :01:50.-- being a perfectionist. Always horrible when that question comes
:01:51. > :01:52.up. We will share hours with you later.
:01:53. > :02:04.We start with the price of oil, because once again despite the best
:02:05. > :02:07.efforts of the oil producing nations to prop it up, it is on the slide.
:02:08. > :02:09.Let's show you what's been happening.
:02:10. > :02:15.This week the talk's all been about this guy - he's back.
:02:16. > :02:18.Traders refer to a "bear market" when the price of an asset falls 20%
:02:19. > :02:25.It often signals a loss of confidence
:02:26. > :02:33.Since the start of the year crude has done just that -
:02:34. > :02:35.it's down over 20% - from above $56 per
:02:36. > :02:42.to below $45 by the middle of this week.
:02:43. > :02:44.Back in November the Organisation of the Oil Producing Countries -
:02:45. > :02:47.OPEC - together with 11 other countries - agreed a landmark deal
:02:48. > :02:50.to restrict oil output to try and prop up prices.
:02:51. > :02:52.Between them they are supposed to be cutting production
:02:53. > :02:57.Although there are questions about whether everyone is sticking to it.
:02:58. > :03:03.And last month they agreed to continue that policy
:03:04. > :03:05.for another nine months, to March 2018.
:03:06. > :03:07.But there's still too much oil around.
:03:08. > :03:19.US shale producers were hit hard when oil
:03:20. > :03:21.prices crashed in 2014 - many were put out of business.
:03:22. > :03:25.But this year, thanks to OPEC's action to boost prices -
:03:26. > :03:28.as you can see here, the number of active US oil rigs has
:03:29. > :03:39.That's just added to the global glut of oil.
:03:40. > :03:42.Cailin Birch, Commodities Analyst at the Economist Intelligence Unit
:03:43. > :03:52.The problem with a bear market is once you get into it it can be
:03:53. > :03:56.difficult to get out. It can become and we have seen a switch where we
:03:57. > :03:59.have seen future prices for 2018 lower than current spot prices,
:04:00. > :04:07.signalling a loss of confidence in the market. What can be done? Opec
:04:08. > :04:13.have come together in a way that's been very surprising compare to what
:04:14. > :04:19.they have done in the past. You said earlier they don't always keep up
:04:20. > :04:23.their promises on production, but they have pulled together. The
:04:24. > :04:26.problem has been US shale gas. We have seen a couple of times in the
:04:27. > :04:32.last couple of decades where Opec has tried to get together around a
:04:33. > :04:36.table and limit production to impact prices, and both times we saw
:04:37. > :04:44.compliance of around 40 and 60%. We have seen compliance of close to
:04:45. > :04:53.100% this time because of the Saudi Arabia approach. That's a real
:04:54. > :04:56.progress. We think of Opec representing around 40% of oil
:04:57. > :05:00.production, and the US has risen rapidly in recent years. The problem
:05:01. > :05:07.in terms of keeping prices stable is the US is able to respond to even
:05:08. > :05:10.modest increases in prices. Shale drilling is relatively
:05:11. > :05:16.cost-effective compared to offshore. It's a more nimble industry that can
:05:17. > :05:22.react faster. Do you sense that at this level it's reaching, this lower
:05:23. > :05:27.level, is the new norm? As far as we see every time Opec take action to
:05:28. > :05:34.boost prices, it encourages shale to come back on stream. Will we see oil
:05:35. > :05:42.at these prices for the foreseeable? I think so. And it could potentially
:05:43. > :05:48.go further down. We tend to see a six-month lag between where the US
:05:49. > :05:55.rig camped moves and the US barrels per day. At the moment we still see
:05:56. > :05:58.rigs going up meaning to US production will continue to rise. A
:05:59. > :06:02.lot of it is confidence based on because confidence is weakening
:06:03. > :06:09.considerably, it could go lower than 47 dollars per barrel. It's not
:06:10. > :06:14.gangbusters by any stretch of the imagination yet, but it is growing,
:06:15. > :06:18.and it will probably not fall back to the $30 per barrel level we have
:06:19. > :06:22.seen, unless something dramatic happens in the market, which is not
:06:23. > :06:24.our forecast. Thank you for joining us.
:06:25. > :06:27.Let's take a look at some of the other stories
:06:28. > :06:37.UK government plans for a new $23 billion nuclear
:06:38. > :06:39.power station have come under fire from public auditors,
:06:40. > :06:41.who call it "a risky and expensive project".
:06:42. > :06:44.The National Audit Office say the case for the Hinkley Point C
:06:45. > :06:47.It says the deal with state-controlled French energy firm
:06:48. > :06:51.EDF and Chinese company CGN to build the plant is "not value for money".
:06:52. > :06:53.The 34 largest banks in the US have enough money on hand
:06:54. > :06:58.to withstand a severe recession, according to the US central bank.
:06:59. > :07:00.The finding comes from an annual "stress test" conducted
:07:01. > :07:05.The tests were put in place after the financial crisis
:07:06. > :07:10.to strengthen financial capacity in the event of a downturn.
:07:11. > :07:13.American Airlines has received an "unsolicited" approach
:07:14. > :07:17.from Qatar Airways which wants to buy 10% of the US carrier.
:07:18. > :07:24.In a regulatory filing, American Airlines said Qatar
:07:25. > :07:27.intended to buy at least $800 million of its shares - and it
:07:28. > :07:31.Analysts say Qatar could be trying to strengthen its relations
:07:32. > :07:37.with the US amid the diplomatic crisis with its Gulf neighbours.
:07:38. > :07:41.To Asia now - and the Industrial and Commercial Bank of China -
:07:42. > :07:44.known as ICBC - has moved to calm fears about the health of loans
:07:45. > :07:46.to some of the country's biggest companies.
:07:47. > :08:00.What a ground can you give us to this story? Before that I have some
:08:01. > :08:05.breaking news. We had news break that Toshiba, which has been trying
:08:06. > :08:09.to sell its chip unit in order to raise enough money to cover the
:08:10. > :08:16.losses in its US nuclear division, its shares have just been downgraded
:08:17. > :08:21.to the second section of the Tokyo stock exchange as of the 1st of
:08:22. > :08:25.August after the company repeatedly postponed earnings results. The last
:08:26. > :08:29.we heard we were supposed to find out by the end of this month but the
:08:30. > :08:33.company has just applied for another extension until August ten, which it
:08:34. > :08:37.got the approval for, but in exchange its shares have been
:08:38. > :08:43.demoted to the second section of the Tokyo stock exchange. You are asking
:08:44. > :08:45.about China and we are talking about some of the massive overseas
:08:46. > :08:54.acquisitions that have been making news headlines lately, such as the
:08:55. > :08:58.purchase of Hollywood studios. Yesterday when authorities appeared
:08:59. > :09:08.to start cracking down on overseas acquisitions, the shares fell. One
:09:09. > :09:15.fell 10% until they were suspended. Them the ICBC came out and said it
:09:16. > :09:19.was just a routine and we should see shares recover this Friday. The
:09:20. > :09:20.message is that Chinese companies and their spending and shopping
:09:21. > :09:25.spree isn't yet over. Thank you. We can see the effect it's having on
:09:26. > :09:29.the markets... Asian shares flatlined but remained
:09:30. > :09:34.on track for a weekly gain. Crude oil prices pulled away
:09:35. > :09:39.from this week's 10-month lows. Crude enjoyed a rare positive day
:09:40. > :09:43.on Thursday after hefty selling that sent it to a 10-month low,
:09:44. > :09:48.but the gains were small change as concerns over a global supply
:09:49. > :09:50.glut and US production overshadow The sharp losses -
:09:51. > :09:58.oil is down around 25% from its recent highs seen
:09:59. > :10:00.in January - has hit energy firms and,
:10:01. > :10:02.despite another pick-up in the commodity, they
:10:03. > :10:13.continue to struggle. The European markets starting Friday
:10:14. > :10:20.with a modestly lower start across the board.
:10:21. > :10:23.In the US, investors are eyeing Donald Trump's revised healthcare
:10:24. > :10:26.bill hoping its success will open the way for his economic agenda.
:10:27. > :10:29.And we now have the details about what's ahead on Wall Street Today.
:10:30. > :10:32.The company that bears the name of the once
:10:33. > :10:33.very popular smartphone will release its
:10:34. > :10:40.Remember, the company's on a big turnaround effort,
:10:41. > :10:43.so this will be the first chance that investors will be able to take
:10:44. > :10:46.These days, BlackBerry is better known for losing
:10:47. > :10:51.in the smartphone wars to Apple, Samsung and Google.
:10:52. > :10:54.But the Canadian firm is gaining traction as it tries to really
:10:55. > :10:59.reinvent itself as a maker of industrial software.
:11:00. > :11:02.In economic news, new US single-family homes sales,
:11:03. > :11:08.those numbers will be released on Friday, and likely rebound
:11:09. > :11:11.in the month of May, suggesting that the housing
:11:12. > :11:22.Joining us is Lucy MacDonald, CIO, Global Equities
:11:23. > :11:34.We were just talking about what she wanted to start with. Is it health
:11:35. > :11:39.care? Tell me more about the bill they are trying to get through in
:11:40. > :11:41.the States. Part of Donald Trump's plans to repeal Obamacare. Looks
:11:42. > :11:46.like they might have some issues, but what impact does it have on the
:11:47. > :11:49.stock markets? The health care sector has been very strong in the
:11:50. > :11:53.last couple of weeks but it's not actually to do with the health care
:11:54. > :11:57.bill as such. It's more to do with relief about pricing of drugs.
:11:58. > :12:04.That's because there has been a leaked draft of a order that Trump
:12:05. > :12:08.is preparing, that is much more lenient towards drug company pricing
:12:09. > :12:15.than he was saying even six months ago. That has created enormous
:12:16. > :12:17.amounts of relief in the market, so the biotech sector has been the
:12:18. > :12:23.strongest area in the last couple of weeks. We will watch and see that.
:12:24. > :12:27.It has been a complete U-turn as far as that's concerned. Pointing more
:12:28. > :12:33.towards using deregulation to keep pricing under control rather than
:12:34. > :12:37.regulation. The other interesting thing in the States is the Federal
:12:38. > :12:46.reserve moving from a policy that has been broadly loose in terms of
:12:47. > :12:50.interest rates to starting to tighten up. Do you anticipate there
:12:51. > :12:55.will be much response in the markets? It has been very well flat
:12:56. > :13:02.and you can give the Federal reserve a lot of credit for that. We have
:13:03. > :13:09.seen a plan that has been set out on how interest rates are likely to
:13:10. > :13:14.move. But now, as of the last Federal reserve meeting, we have a
:13:15. > :13:22.better idea of how the balance sheet will be unwound. 4.3 trillion of
:13:23. > :13:27.Treasuries mortgage-backed mortgages on the balance sheet. It's over a
:13:28. > :13:33.time that is yet to be defined, but that's the path of travel. That it
:13:34. > :13:39.is being seen as another way of tightening. Therefore the impact of
:13:40. > :13:46.that is being taken in conjunction with the rates as well. So managing
:13:47. > :13:50.that is going to be quite something to do, particularly as there will
:13:51. > :13:54.possibly be a change of the Federal reserve governments next year. You
:13:55. > :13:59.will join this again at the end of the papers and think of your floors
:14:00. > :14:03.to announce at a job interview. I would imagine there are none!
:14:04. > :14:06.The British Prime Minister offers to ensure the post-Brexit rights
:14:07. > :14:08.of three million EU citizens living in the UK.
:14:09. > :14:11.Later we'll have a wrap up of this week's big economic stories
:14:12. > :14:12.with our correspondent Andrew Walker.
:14:13. > :14:22.You're with Business Live from BBC News.
:14:23. > :14:27.Today marks the one year anniversary of the day Britons went to the polls
:14:28. > :14:30.and surprised themselves by voting to leave the European Union.
:14:31. > :14:32.Earlier this week, the UK government started the arduous task
:14:33. > :14:40.of negotiating a Brexit deal with politicians in Brussels.
:14:41. > :14:42.Let's talk more with our business correspondent Ben Thompson.
:14:43. > :14:55.What can you order for us? Good morning and welcome to South London.
:14:56. > :14:57.We are talking about that anniversary, one years since we
:14:58. > :15:01.decided to vote to leave the European Union and turn our back on
:15:02. > :15:06.40 years of membership of the club. A lot has been said since then. All
:15:07. > :15:11.sorts of debate about what it means for jobs, trade and the economy on
:15:12. > :15:15.both sides. With meat this morning to discuss it are our Brexit panel.
:15:16. > :15:23.It's neatly split down the middle. I have levers and Remainers. I can
:15:24. > :15:27.introduce you to a couple of them. Lindsay and David. Lindsay, you run
:15:28. > :15:29.businesses and there has been so much uncertainty in the last couple
:15:30. > :15:35.of months, but are we closer to getting answers?
:15:36. > :15:42.I don't know if we are closer to getting answers, lease we are
:15:43. > :15:47.getting something coming out of the government now about their plans.
:15:48. > :15:50.What is giving businesses problems over the last 12 months is the lack
:15:51. > :15:55.of planning, lack of certainty of where we are going. The uncertainty
:15:56. > :16:00.is an issue, I think. People I work with, over 50, leaving work, they
:16:01. > :16:04.are looking to travel, they need their money safely, they need a
:16:05. > :16:08.pound at a safe rate, they need the economy to be strong and support
:16:09. > :16:13.their portfolios. Lots of them are setting up businesses after they are
:16:14. > :16:18.50. They need certainty about what the future is for them. What is the
:16:19. > :16:24.future, David? There is no certainty, we don't know what is
:16:25. > :16:26.going to happen. It is exciting. The opportunity is to maintain
:16:27. > :16:33.relationships with individual countries in the EU, we have a great
:16:34. > :16:36.big wide world out there. The disgraceful way we have treated the
:16:37. > :16:41.Commonwealth, let's have them back, Africa, Asia, America, South
:16:42. > :16:51.America, so much to go for. A lot of clarity last night. Great news. The
:16:52. > :16:57.debate continues. I am staying safely down the middle here, but
:16:58. > :17:01.much more on the BBC throughout the day. See you soon.
:17:02. > :17:11.The UK Prime Minister Theresa May has revealed details of what she's
:17:12. > :17:13.called a generous offer on the rights of EU citizens
:17:14. > :17:20.Around 3 million EU citizens would be allowed to stay in Britain-
:17:21. > :17:22.let's get more on this now with our economics
:17:23. > :17:31.How significant do you think this is for business and economics, the
:17:32. > :17:34.offer Theresa May has made? It is certainly important in that it sets
:17:35. > :17:41.a favourable tone for the whole negotiations, and there are a dozen
:17:42. > :17:44.to areas where they matter for business. She has had a positive
:17:45. > :17:50.response from the German Chancellor Angela Merkel, which is encouraging.
:17:51. > :17:55.What is clear with this area is, there is a political will on both
:17:56. > :17:57.sides to get a deal. There are technical issues, certainly,
:17:58. > :18:03.questions about other things beyond rights to work and live in the UK,
:18:04. > :18:09.access to health care, education, writes to have family members
:18:10. > :18:12.joining and forth, and the one politically difficult element in
:18:13. > :18:17.this is the question of the jurisdiction, where will disputes be
:18:18. > :18:20.settled? The European Union side would like that to be the European
:18:21. > :18:24.Court of Justice, which the Prime Minister has said is a red line. But
:18:25. > :18:28.it does look like it is going to be a relatively easy thing to resolve,
:18:29. > :18:33.certainly in terms of the political will. It is clear that it is strong
:18:34. > :18:37.on both sides. The settled status is one thing. Another issue is migrant
:18:38. > :18:42.workers, we saw headlines yesterday in the UK talking about difficulties
:18:43. > :18:47.that some growers were facing getting seasonal workers this year.
:18:48. > :18:51.BBC research was done but looked at particular issues about migrant
:18:52. > :18:58.seasonal workers. We found that there was evidence that soft fruit
:18:59. > :19:00.growers, leafy salad grows, two particular trade Association, found
:19:01. > :19:06.that their members were having some difficulty getting workers. They
:19:07. > :19:08.said it will certainly harder than the year before. A significant
:19:09. > :19:13.number of their members were concerned about whether we would
:19:14. > :19:15.have enough people for this season. It is partly about the uncertainty
:19:16. > :19:19.to do with Brexit, although one has to say, for the time being, those
:19:20. > :19:26.people have the same right to come and pick the fruit and veg as they
:19:27. > :19:29.had a year ago, but it is more to do with the decline in Stirling. People
:19:30. > :19:33.coming here temporarily want to take the money back to their families. In
:19:34. > :19:38.terms of foreign currency, it is worth less than a year ago because
:19:39. > :19:41.of the decline after the referendum. Because of the decline in pounds
:19:42. > :19:46.sterling, there is talk about whether interest rates need to rise
:19:47. > :19:50.to prop the value up, a bit of a diverted at the top of the Bank of
:19:51. > :19:57.England, it seems. A recent committee decided to keep interest
:19:58. > :20:03.rates unchanged at their all-time low. We discovered, to our surprise,
:20:04. > :20:06.that there was a 5-3 split in the voting on that. Three wanting to
:20:07. > :20:10.start raising rates to deal with inflation that has been feeding
:20:11. > :20:16.through as a result of the decline in pounds sterling. And the delayed
:20:17. > :20:23.effect of rising international commodity prices. But strikingly, we
:20:24. > :20:28.had the chief economist, he said that there was a case raising rates
:20:29. > :20:32.soon, within a day or so of his boss, the governor, saying now is
:20:33. > :20:36.not the time. Now and soon are not necessarily quite the same, but it
:20:37. > :20:41.does seem as though there is a division opening up there. One
:20:42. > :20:49.person, one former Treasury adviser, suggested that Andy Halliday's
:20:50. > :20:55.position is whatever will oppose the governor. What was your take on the
:20:56. > :20:59.Queen's speech this week? It was striking. Dominated by Brexit and
:21:00. > :21:03.the enormous legislative programme that will generate, but wasn't it
:21:04. > :21:07.striking how so many Conservative Party manifesto commitments were not
:21:08. > :21:13.there. Social care costs for the elderly, grammar schools, the
:21:14. > :21:17.so-called triple lock on the state pension, and I think that reflects
:21:18. > :21:21.something that may also be reflected in due course in the Brexit issue,
:21:22. > :21:25.which is the difficulty they may have in getting a parliamentary
:21:26. > :21:28.majority for everything they want. Bearing mind, the details of what
:21:29. > :21:34.Brexit will mean, something parliament will have a view on, and
:21:35. > :21:39.there are wide divisions, even with those that accept reluctantly that
:21:40. > :21:48.it will happen. Thanks for your time.
:21:49. > :22:03.How did Velcro come to be what we know it is today.
:22:04. > :22:09.It is sticky, multifunctional and probably in use somewhere in your
:22:10. > :22:19.house. Velcro! The idea was the brainchild of a Swiss engineer, and
:22:20. > :22:22.in 1941, George was walking through the woods when he wondered if those
:22:23. > :22:31.annoying birds had stuck to his trousers and his dog would be of any
:22:32. > :22:35.use. He began by experimenting, and eventually came up with a means to
:22:36. > :22:40.replicate the action, with two strips of material. One with
:22:41. > :22:46.thousands of tiny hooks, and one with thousands of tiny loops. George
:22:47. > :22:52.patented the technique in 1955, just in time for the space race. And the
:22:53. > :22:57.Apollo astronauts loved it in the 1960s. They used it to stop their
:22:58. > :23:02.plates from floating in space. Before long, everyone was using it,
:23:03. > :23:08.hospitals, airlines, the military, eventually George was selling
:23:09. > :23:15.50,000: that is a year of the stuff, and he made millions. So where did
:23:16. > :23:26.George get the name, Velcro? Two French words stuck together.
:23:27. > :23:28.What other business stories has the media been
:23:29. > :23:31.Lucy MacDonald, CIO, Global Equities at Allianz Global Investors
:23:32. > :23:42.Quite a significant one from the US, big banks passing the first hurdle
:23:43. > :23:47.in the stress test. Things are looking more robust than they were
:23:48. > :23:51.just a few years ago. The banks have all made a good effort to get their
:23:52. > :23:58.capital levels up. You can see that. When you look at the minimum
:23:59. > :24:01.regulatory tier one 4.5%, they are all well above that. Even with the
:24:02. > :24:07.extra leveret put in, most of them still have a good buffer, Morgan
:24:08. > :24:13.Stanley was a bit on the weak side, but they are looking better. They
:24:14. > :24:18.have got better at working through it as well. From that perspective,
:24:19. > :24:23.it does underline the fact that the whole of the US banking system has
:24:24. > :24:26.really just mended its balance sheet in a way that we have not yet seen
:24:27. > :24:30.in Europe. Although we are seeing signs of it in Spain in particular.
:24:31. > :24:34.Is it the kind of thing that people should breathe a sigh of relief,
:24:35. > :24:38.they are a bit more spots will looking towards a rainy day, or
:24:39. > :24:42.getting better at answering the questions? It is definitely the
:24:43. > :24:47.former. The numbers are a lot better. I think that is known now.
:24:48. > :24:52.When you look at the valuations of the banks in the US, they certainly
:24:53. > :25:00.have started to reflect that, but there is a lot of work to do in
:25:01. > :25:05.Europe. So a survey saying that you should give some of your floors in a
:25:06. > :25:10.job interview, and you are more likely to get the job. What does it
:25:11. > :25:14.say in the article, any tips? It is all about self verification. I am a
:25:15. > :25:20.bit of an expert in this because I have been helping my son, who is
:25:21. > :25:25.doing a level psychology. It says that if you are honest about your
:25:26. > :25:31.flaws in an interview, you are more likely to get the job. There is a
:25:32. > :25:34.secondary part of this that is definitely, having the
:25:35. > :25:37.qualifications in the first space. If you don't have the qualifications
:25:38. > :25:47.and you are not confident in the job, it is best... What is a good
:25:48. > :25:51.flaw to say? Personally, I would say, feedback I have had is that I
:25:52. > :25:55.can be detached. Therefore, being here in this interview, being on the
:25:56. > :26:02.BBC, it clearly shows I am trying to do something better. You would never
:26:03. > :26:03.be able to tell! Asked a flaw, I would say answering silly questions
:26:04. > :26:05.like that.