:00:00. > :00:07.This is Business Live from BBC News with Ben Bland and Alice Baxter.
:00:08. > :00:19.As the industry gathers in Turkey, will the second half of the year
:00:20. > :00:37.Live from London, that's our top story on Monday 10th July.
:00:38. > :00:40.Oil prices have yet to show much of an increase
:00:41. > :00:42.despite the continued production cuts from OPEC.
:00:43. > :00:55.Full steam ahead for Chinese shipping giant Cosco.
:00:56. > :00:58.A $6 billion bid for rival OOIL would make it the world's third
:00:59. > :01:14.The figures are all in positive territory. We will look at what the
:01:15. > :01:15.week might have in store for the markets.
:01:16. > :01:18.Man has always relied on the oceans for fishing and trade,
:01:19. > :01:23.but what threat do over-fishing, climate change and plastics pose?
:01:24. > :01:26.We'll speak to the woman behind a new charity trying to flag up
:01:27. > :01:34.Are your streaming habits impacting your sleep?
:01:35. > :01:36.Today we want to know, are your streaming viewing habits
:01:37. > :02:01.It's all too easy, you start watching one episode, you think, one
:02:02. > :02:03.more, and the hours just go. As one of the world's most
:02:04. > :02:11.important commodities, the cost of everything from filling
:02:12. > :02:14.up our cars to shipping For the top oil producing
:02:15. > :02:18.nations, it also underpins So perhaps what everyone
:02:19. > :02:21.at the World Petroleum Congress in Turkey wants most
:02:22. > :02:31.is the stability to plan ahead. As you can see, while a global deal
:02:32. > :02:33.between major producers, but not the US, to limit supply has
:02:34. > :02:36.somewhat stabilised the price of the black stuff,
:02:37. > :02:38.oversupply now means the price In fact, the oil price is down
:02:39. > :02:45.more than 12% this year, with an uptick in global demand
:02:46. > :02:49.insufficient to absorb rising output, a lot of it
:02:50. > :02:56.from the United States. The latest data shows
:02:57. > :02:58.that US oil production - driven by shale oil output -
:02:59. > :03:01.rose 1% last week to 9.34 It used to be the case that US shale
:03:02. > :03:09.production wouldn't be cost effective with a price below
:03:10. > :03:18.$50 a barrel. However, increased efficiency
:03:19. > :03:20.and technological advances Since 2013, the average price
:03:21. > :03:23.at which it becomes profitable has dropped from $80
:03:24. > :03:29.per barrel to $35. Trevor Sikorski is the head
:03:30. > :03:45.of natural gas and carbon Ben was talking a lot about oil and
:03:46. > :03:49.Rex Tillerson is an oilman, so it was expected that he might talk at
:03:50. > :03:56.length about in Turkey. He actually didn't. The focus was more on gas.
:03:57. > :03:59.Yes, that is one of the interesting things about this. Thematically,
:04:00. > :04:02.when you look at the conference, it is as much about gas and
:04:03. > :04:07.sustainability as it is about oil. It is almost like yes, there is a
:04:08. > :04:12.lot of supply out there and rain in the supply in has been a challenge.
:04:13. > :04:17.The longer term challenges are more on the demand side. What will happen
:04:18. > :04:24.with energy transition? What role does gas play in that? What role do
:04:25. > :04:28.renewables play? All of that will probably squeeze oil. Why do you
:04:29. > :04:34.think Rex Tillerson took that tack? I think that now, he's not speaking
:04:35. > :04:38.as the head of the world's largest oil company, he is speaking as
:04:39. > :04:43.Secretary of State the US. And a big part of US policy under Trump has
:04:44. > :04:51.been pushing ahead in trying to progress US natural gas exports.
:04:52. > :04:56.Last year, the US became a natural gas export of the first time,
:04:57. > :05:03.investing a lot in export capacity. This is a big thing for Trump. It
:05:04. > :05:09.creates jobs domestically, and it also makes gas more expensive in the
:05:10. > :05:13.US, which is good for coal, which is another big part of Trump. We talk a
:05:14. > :05:19.lot about shale production in the US and how that contributes to the glut
:05:20. > :05:27.around the world of oil and gas and keeps prices suppressed. It is a
:05:28. > :05:30.dramatic level to which prices have dropped. That will surely just
:05:31. > :05:36.encourage the shale producers to keep pumping the stuff out.
:05:37. > :05:44.Absolutely. Shale production is a new technology. We have seen huge
:05:45. > :05:57.increases in the advancement of those techniques. That creates more
:05:58. > :06:00.supply. With the latest down and pick in crude prices, we are
:06:01. > :06:07.starting to see a slowing in drilling activity in the US, but it
:06:08. > :06:12.is still healthy. The demand for oil is not going to be helped by big car
:06:13. > :06:16.companies like Volvo and VW saying they are going to do try and get rid
:06:17. > :06:21.of their internal combustion engines and go electric. Tesla today were
:06:22. > :06:28.unveiling their mass-market model. This is the big threat for oil. The
:06:29. > :06:30.electrification of transport. It is exciting because it is new
:06:31. > :06:37.technology and it is very good for the climate. But within that, you
:06:38. > :06:42.need to have low carbon fuels generating a lot of electricity. Gas
:06:43. > :06:54.plays into that because it is a lot less carbon intensive than oil or
:06:55. > :06:59.coal. So when you look ahead as a transition fuel, gas has a big role
:07:00. > :07:02.to play. That is why it is so high on the agenda. Trevor, good to talk
:07:03. > :07:03.to you. Let's take a look at some of
:07:04. > :07:07.the other stories making the news... Tobacco giant Philip Morris has been
:07:08. > :07:10.ordered to pay millions of dollars in legal fees after unsuccessfully
:07:11. > :07:16.suing the Australian government In 2012, Australia legislated that
:07:17. > :07:21.cigarettes must be sold in unappealing packets
:07:22. > :07:24.with graphic health warnings. The International Permanent Court
:07:25. > :07:28.of Arbitration hasn't published the amount Philip Morris must pay,
:07:29. > :07:32.but Australian media Kuwait Airways and Royal Jordanian
:07:33. > :07:38.have become the latest Middle Eastern airlines to remove
:07:39. > :07:40.restrictions on passengers taking laptops in the cabin
:07:41. > :07:45.on US-bound flights. Both carriers said they had
:07:46. > :07:48.worked with US officials The US imposed the ban in March
:07:49. > :07:55.on direct flights from eight mainly Muslim countries to address fears
:07:56. > :07:57.that bombs could be The former boss of one of the UK's
:07:58. > :08:10.leading supermarket chains, Sainsbury's, has told the BBC that
:08:11. > :08:13.Brexit will mean higher food prices, Justin King says the UK food
:08:14. > :08:16.system has been shaped by the European Union for 40 years
:08:17. > :08:19.and leaving will be tough The Chinese shipping giant Cosco
:08:20. > :08:31.look set to buy its Hong Kong and would make Cosco the world's
:08:32. > :08:36.third biggest shipping company. Monica Miller is in our
:08:37. > :08:50.Asia Business Hub in Singapore. What more do you have on this? Cost
:08:51. > :08:54.those stocks are gaining traction after the news broke of the weekend
:08:55. > :08:59.that the shipping company offered to buy its rival, Orient Overseas
:09:00. > :09:03.International out of Hong Kong for $6.3 billion. That will make it the
:09:04. > :09:06.third biggest container ship company in the world. This comes at a
:09:07. > :09:09.crucial time for the Chinese government that wants to raise its
:09:10. > :09:14.global shipping profile, which was a big part in its initiative aimed at
:09:15. > :09:18.increasing a supply chain to the West. They will now have 400 vessels
:09:19. > :09:23.to achieve that goal. But analysts say that the sooner shares often
:09:24. > :09:31.fall after an announcement like this. But Cosco's stock rose to its
:09:32. > :09:34.highest in almost two years today. Monica, thanks.
:09:35. > :09:43.Tokyo stocks closed higher as Chinese data kept investors
:09:44. > :09:49.upbeat on the global economy while a weak yen boosted exporters.
:09:50. > :09:52.They were also lifted by Wall Street's strong
:09:53. > :09:55.performance on Friday, while the US dollar extended gains
:09:56. > :10:04.made after much stronger than expected June employment data.
:10:05. > :10:16.Let's show you how the European markets begin the trading week. All
:10:17. > :10:19.of them are in positive territory. We will see what Janet Yellen as to
:10:20. > :10:23.say when she makes her speech later this week. What the US Fed does will
:10:24. > :10:25.have an impact on other markets around the world. We will get into
:10:26. > :10:27.that in a moment. Samira Hussain has the details
:10:28. > :10:29.about what's ahead On Monday, a trial is set to begin
:10:30. > :10:35.against General Motors. The claim is that a faulty ignition
:10:36. > :10:38.switch caused a power failure General Motors has conceded
:10:39. > :10:41.that an earlier version of the switch was defective,
:10:42. > :10:46.but denies any such problem with the newer version at issue
:10:47. > :10:49.in this upcoming trial. The other big event happening
:10:50. > :10:51.this week is of course the Federal Reserve chair
:10:52. > :10:53.Janet Yellen's testimony This is her semi-annual appearance,
:10:54. > :10:58.where she will be asked questions No doubt she will certainly be asked
:10:59. > :11:03.about the Fed's plan to reduce some Finally, the week ends
:11:04. > :11:07.with a bit of a bang as some of America's biggest banks
:11:08. > :11:14.will report second-quarter earnings. Joining us is Jeremy Stretch,
:11:15. > :11:31.head of currency strategy Let's start with talking about the
:11:32. > :11:35.US dollar. It has been given a boost by better-than-expected jobs
:11:36. > :11:40.numbers. Indeed. The US Labour market continues to generate a large
:11:41. > :11:43.number of jobs. The Labour market is tight in the US. That implies that
:11:44. > :11:46.economies are growing at a reasonable clip and by virtue of
:11:47. > :11:51.that, that suggests that the Fed's policy of raising rates gradually
:11:52. > :11:54.still has further to run. So that sets the template for Yellen's
:11:55. > :12:01.testimony on Wednesday and Thursday this week. Talking of that, what are
:12:02. > :12:06.your main expectations to come out of that? As I say, the markets are
:12:07. > :12:10.looking for the backdrop of the interest rate story. Not only what
:12:11. > :12:14.they will do about interest rates, but also what they will do about
:12:15. > :12:18.balance sheets. They have bought huge numbers of US Treasuries. They
:12:19. > :12:22.need to gradually release those back into the market. Markets will be
:12:23. > :12:25.looking for signs on both interest rates and the balance sheets, and
:12:26. > :12:29.that will have implications for the dollar and other global banks. Other
:12:30. > :12:34.central banks are considering raising rates as well. They will
:12:35. > :12:39.also be looking for hints about the Fed started paper it's balance sheet
:12:40. > :12:45.and selling the bonds it holds. Indeed. We have seen interest rates
:12:46. > :12:48.in terms of bonds are moving significantly, so that does create
:12:49. > :12:51.uncertainty in relation to things like mortgage rates, because if bond
:12:52. > :12:57.yields were to rise too quickly, that would push up mortgage rates or
:12:58. > :13:00.would risk pushing them up. So there is a difficult balancing act here,
:13:01. > :13:06.and markets are watching to see how Janet Yellen will pursue that over
:13:07. > :13:11.the next few weeks. Another major economy we all look too is China.
:13:12. > :13:15.They had some inflation data out. They did. They had both consumer and
:13:16. > :13:19.producer price inflation, and those numbers were in line with where the
:13:20. > :13:24.market would like things to be. We were not seeing prices moving too
:13:25. > :13:29.slowly so we were not seeing a defect risk. But we are not seeing
:13:30. > :13:34.prices are increasing too quickly, which would imply that the central
:13:35. > :13:37.banks would need to move faster. So it is a Goldilocks scenario as far
:13:38. > :13:41.as the Chinese inflation story is concerned. Inflation is going up,
:13:42. > :13:44.but not too quickly. One of the by-products of that is what is
:13:45. > :13:48.happening in the oil markets, going to your previous discussion. It is
:13:49. > :13:51.important that we don't see oil prices moving up to dramatically,
:13:52. > :13:58.because that would have implications for inflation. We have that major
:13:59. > :13:59.meeting of Opec members later in the week. Jeremy, you will take us
:14:00. > :14:05.through the papers later. We'll get the inside track
:14:06. > :14:09.on a new charity trying to keep our oceans alive
:14:10. > :14:11.for Generation Z. You're with Business
:14:12. > :14:23.Live from BBC News. The takeaway industry is said
:14:24. > :14:25.to be worth ?4.5 billion, but a new trade group representing
:14:26. > :14:34.the sector says it's struggling. The British Takeaway Campaign -
:14:35. > :14:37.a new umbrella group representing the sector -
:14:38. > :14:39.has commissioned a report from the Centre for Economics
:14:40. > :14:43.and Business Research and it shows despite the record number
:14:44. > :14:45.of jobs in the sector, businesses are struggling
:14:46. > :14:47.with recruiting staff and inflation Graham Corfield is the managing
:14:48. > :15:10.director at Just Eat, What changes do you want to see? It
:15:11. > :15:16.is important to celebrate the success we have had and to keep
:15:17. > :15:22.things running. British businesses contribute to the economy. Right
:15:23. > :15:24.now, the challenges are around skill shortages and the impact of the
:15:25. > :15:34.recent rates evaluation. What practical steps can be done to
:15:35. > :15:39.improve the situation for businesses? At British Takeaway
:15:40. > :15:45.Campaign we are keen to talk to the Government on the skills shortages
:15:46. > :15:50.side around vocational training, British people see takeaway as a
:15:51. > :15:52.career opportunity and huge opportunities within it, we're
:15:53. > :15:56.working with the Government to make sure that vocational qualifications
:15:57. > :16:05.include a takeaway module within it so that it addresses the skills
:16:06. > :16:10.shortages across many cuisines. There is certainty as we head to the
:16:11. > :16:13.Brexit discussions and the immigration system, making sure both
:16:14. > :16:17.EU and non-EU workers working in the sector today are assured of their
:16:18. > :16:24.roles but equally understanding that the new rules as they go forward
:16:25. > :16:35.understand there are specialist skills sets that underpin the
:16:36. > :16:44.sector. Do you feel the Government is listening to you? It is great to
:16:45. > :16:49.see some certainty is being issued. When I talk to restaurant owners
:16:50. > :16:54.they are concerned it could have a serious impact on the sector, it is
:16:55. > :16:59.a 9.5 billion sector and we need to sustain it to make it continue. We
:17:00. > :17:00.are going to have to leave it there, thank you, you are watching Business
:17:01. > :17:17.Live. As the oil industry gathers in
:17:18. > :17:22.Turkey, prices are up slightly. Let's have a look at the markets are
:17:23. > :17:26.faring. The main indices across Europe, this is how they look at the
:17:27. > :17:32.start of the trading week. All in positive territory.
:17:33. > :17:35.And now let's get the Inside Track on a social enterprise
:17:36. > :17:37.which is hoping to raise awareness of environmental issues.
:17:38. > :17:40.We Are The Oceans aims to tackle the issue of plastic waste
:17:41. > :17:42.in the world's oceans, and it's taking aim
:17:43. > :17:46.The not-for-profit organisation focuses on getting its message out
:17:47. > :17:47.via millennial-friendly mobile games, and collaborations with
:17:48. > :18:02.We Are The Oceans has already generated support
:18:03. > :18:05.from gaming giant Rovio - the creator of Angry Birds -
:18:06. > :18:06.fashion house H, and global sports brand Vans.
:18:07. > :18:12.We're joined by Daisy Kendrick, the founder of We Are The Oceans.
:18:13. > :18:20.Thank you for joining us here in the studio. We began by saying that your
:18:21. > :18:24.organisation is aimed at raising awareness amongst young people,
:18:25. > :18:31.so-called generation Z. Your generation, if you like? Exactly,
:18:32. > :18:34.our aim is to bring the oceans to the most connected generation using
:18:35. > :18:41.technology, gaming and platforms we engage with every single day. How
:18:42. > :18:44.easy or difficult was it to get onto, for example, the makers of
:18:45. > :18:48.Angry Birds and say, we want to do something with you, because their
:18:49. > :18:52.brand is so strong, they have a well-established business, how
:18:53. > :18:56.receptive were they? They were very receptive, they have a huge existing
:18:57. > :19:00.audience and we, as a charity, could tap into that and reach people on
:19:01. > :19:04.their terms and engage them in experiences that they are already
:19:05. > :19:09.engaging with, and Rovio were open to supporting the cause and pursuing
:19:10. > :19:13.their social responsibility angle with us as well. It is impressive
:19:14. > :19:18.stuff, because, if you don't mind me saying, you are only 23 said to get
:19:19. > :19:21.onto a platform like Angry Birds is hugely impressive, but it is not
:19:22. > :19:24.just gaming apps and things, it is things like music festivals and
:19:25. > :19:28.more? We are appealing to millennials with music as well, we
:19:29. > :19:31.have a collective and will be releasing a song later in the year
:19:32. > :19:38.called We Are The Oceans but we have multiple versions of the song using
:19:39. > :19:40.mainly YouTube influences to do their version and spread their
:19:41. > :19:45.version of the song to their audiences. I wonder what your aim is
:19:46. > :19:49.with the organisation because it has been going for eight months now so
:19:50. > :19:54.still fairly early days, what is your ambition for a? Our ambition is
:19:55. > :19:59.to educate as a primary cause, but we also want to support small island
:20:00. > :20:02.developing states and those communities that are completely
:20:03. > :20:06.dependent on their oceans for their livelihood, their food and their
:20:07. > :20:10.income. Overfishing is a major concern, isn't it, and as I
:20:11. > :20:23.understand you began with an on project in March this year in Haiti,
:20:24. > :20:28.where it is a huge problem? We started with the community on the
:20:29. > :20:30.Western point of the island that is in famine, ten years ago the
:20:31. > :20:32.community was driving with fish to eat and sell at market but today
:20:33. > :20:34.because of overfishing, pollution and climate change this community is
:20:35. > :20:37.dependent on food packages. How do you fund the campaign? We are
:20:38. > :20:39.fortunately supported by the United Nations office of projects and
:20:40. > :20:42.services who are a division of the UN, who are great supporters of this
:20:43. > :20:48.start-up campaign, which is quite unique. Do you have any ambitions to
:20:49. > :20:53.source more private funding? Jess, private funding and collaborations
:20:54. > :20:58.with brands in particular because We Are The Oceans is striving to bring
:20:59. > :21:01.innovation into supply chains and fund and develop alternative
:21:02. > :21:04.products, and until sustainability becomes the norm in the supply
:21:05. > :21:08.chains, big change for the environment will not be able to
:21:09. > :21:12.succeed. I was going to say, that is where the challenge comes because
:21:13. > :21:16.you can get individual consumers to change their habits but until you
:21:17. > :21:20.get the big brands to buy into it and the big retailers, it almost
:21:21. > :21:23.feels part like a drop in the ocean whatever we do. By 2020, generation
:21:24. > :21:41.Z will be 40% of the consumer market, and they are seeking and
:21:42. > :21:44.wanting to buy sustainable products but there is not enough in the
:21:45. > :21:47.market right now. Daisy, thank you for coming on, we wish you the best
:21:48. > :21:48.of luck with everything. Daisy Kendrick there, founder and CEO of
:21:49. > :21:48.We Are The Oceans. Let's bring you the latest
:21:49. > :21:51.in our CEO Secrets series where we ask the bosses
:21:52. > :21:53.of the world's biggest organisation Today it's the turn
:21:54. > :22:05.of Alex Beard, chief executive It's got to be all about the people.
:22:06. > :22:10.I'm Alex Beard, chief executive of the Royal Opera House, and I have
:22:11. > :22:14.the very best job in the world! Every single night, round about 300
:22:15. > :22:21.people come together to make something pretty well impossible
:22:22. > :22:25.happen on our stages, and that is to present Lyric theatre, ballet and
:22:26. > :22:31.opera at the very highest level and that means individual passion but
:22:32. > :22:35.also organisational brilliance. The machine has got to work like a lot
:22:36. > :22:40.work towards that 7:15pm moment when the lights go down, the curtain goes
:22:41. > :22:44.up, and you, the audience, are transported into a different world
:22:45. > :22:47.and a different sense of yourself. So each individual needs to feel
:22:48. > :22:55.passionate sense of commitment about what goes on stage. Simply, hire an
:22:56. > :22:57.amazing group of people, give them the space to thrive and keep
:22:58. > :23:02.questioning. What other business
:23:03. > :23:04.stories has the media been Jeremy Stretch is joining
:23:05. > :23:17.us again to discuss. Good to see you. Let's begin with
:23:18. > :23:23.the story that we saw in the FT, it is an interview by the CEO of
:23:24. > :23:27.Netflix, the movie and TV streaming app platform. What did you make of
:23:28. > :23:30.the interview? It was quite telling insight into the man behind what has
:23:31. > :23:34.become a phenomenon. It really is a phenomenon because if you consider
:23:35. > :23:40.the humble origins of the company in terms of going back to how we use to
:23:41. > :23:45.watch films on television via external recording systems to now
:23:46. > :23:48.having an industry heavyweight creating its own content, that is a
:23:49. > :23:53.fascinating things because of course the company is very much driving the
:23:54. > :23:58.market, creating its own content and demanding that others follow through
:23:59. > :24:02.and in a sense it creates a changing business landscape because of course
:24:03. > :24:06.it is one of the driving forces behind the sky 20th Century Fox deal
:24:07. > :24:10.so it is a driver in the market. He gave an interesting insight into the
:24:11. > :24:16.culture of the organisation, saying that adequate performance wasn't
:24:17. > :24:21.enough, that result in some sort of severance package, he also touched
:24:22. > :24:25.on the fact that Netflix is a highly competitive arena competing with
:24:26. > :24:28.pretty much everyone and everything, including our sleep, and we put that
:24:29. > :24:31.out to view was this morning, whether our streaming viewing
:24:32. > :24:35.habits, because it is so mobile now that we can do it on our phone that
:24:36. > :24:38.night, is it getting in the way of our speed? That appears to be the
:24:39. > :24:42.case and psychologists would argue if you are looking at streaming
:24:43. > :24:48.devices late at night it will create blue light which disturbs your sleep
:24:49. > :24:55.patterns, creating a raft of other issues, psychological issues, so in
:24:56. > :24:58.a sense there is this mass of content we can see on all different
:24:59. > :25:00.platforms, not just a case of sitting in front of the television.
:25:01. > :25:03.As anybody on the underground knows, you will see people watching things
:25:04. > :25:09.they have downloaded, so there is this inexorable process of almost 24
:25:10. > :25:13.hours which is creating a compete with our sleep in certain cases. And
:25:14. > :25:16.the CEO, Reed Hastings, says it has been a dizzying ride but it is just
:25:17. > :25:21.at the beginning. Jeremy, do you have a unicorn in
:25:22. > :25:28.your basement? Not as far as I am aware! This is extraordinary, it is
:25:29. > :25:31.on the BBC News website, and man who built a ?1 billion computer firm in
:25:32. > :25:36.his basement, one of those entrepreneurial stories that people
:25:37. > :25:39.aspire to. And it is, it has taken a prolonged period and was clearly an
:25:40. > :25:45.enormous risk for this individual to decide to set up his own computer
:25:46. > :25:49.company in his basement, in a small city outside of Toronto which I have
:25:50. > :25:53.visited on a number of occasions and had no idea of this company so it is
:25:54. > :25:57.a story that is fascinating to me as well, but it underlines the fact
:25:58. > :26:00.that if you have an idea, in fact he did not have the idea until he
:26:01. > :26:03.started the process, but if you have an idea, you can create a business.
:26:04. > :26:12.Good to talk to you. We will see you soon, goodbye.
:26:13. > :26:17.Good morning, it has been muggy night across the south-east, fresher
:26:18. > :26:18.further north, over the coming days