10/07/2017 BBC Business Live

This is Business Live from BBC News with Ben Bland and Alice Baxter.

As the industry gathers in Turkey, will the second half of the year

Live from London, that's our top story on Monday 10th July.

Oil prices have yet to show much of an increase

despite the continued production cuts from OPEC.

Full steam ahead for Chinese shipping giant Cosco.

A $6 billion bid for rival OOIL would make it the world's third

The figures are all in positive territory. We will look at what the

week might have in store for the markets.

Man has always relied on the oceans for fishing and trade,

but what threat do over-fishing, climate change and plastics pose?

We'll speak to the woman behind a new charity trying to flag up

Are your streaming habits impacting your sleep?

Today we want to know, are your streaming viewing habits

It's all too easy, you start watching one episode, you think, one

more, and the hours just go. As one of the world's most

important commodities, the cost of everything from filling

up our cars to shipping For the top oil producing

nations, it also underpins So perhaps what everyone

at the World Petroleum Congress in Turkey wants most

is the stability to plan ahead. As you can see, while a global deal

between major producers, but not the US, to limit supply has

somewhat stabilised the price of the black stuff,

oversupply now means the price In fact, the oil price is down

more than 12% this year, with an uptick in global demand

insufficient to absorb rising output, a lot of it

from the United States. The latest data shows

that US oil production - driven by shale oil output -

rose 1% last week to 9.34 It used to be the case that US shale

production wouldn't be cost effective with a price below

$50 a barrel. However, increased efficiency

and technological advances Since 2013, the average price

at which it becomes profitable has dropped from $80

per barrel to $35. Trevor Sikorski is the head

of natural gas and carbon Ben was talking a lot about oil and

Rex Tillerson is an oilman, so it was expected that he might talk at

length about in Turkey. He actually didn't. The focus was more on gas.

Yes, that is one of the interesting things about this. Thematically,

when you look at the conference, it is as much about gas and

sustainability as it is about oil. It is almost like yes, there is a

lot of supply out there and rain in the supply in has been a challenge.

The longer term challenges are more on the demand side. What will happen

with energy transition? What role does gas play in that? What role do

renewables play? All of that will probably squeeze oil. Why do you

think Rex Tillerson took that tack? I think that now, he's not speaking

as the head of the world's largest oil company, he is speaking as

Secretary of State the US. And a big part of US policy under Trump has

been pushing ahead in trying to progress US natural gas exports.

Last year, the US became a natural gas export of the first time,

investing a lot in export capacity. This is a big thing for Trump. It

creates jobs domestically, and it also makes gas more expensive in the

US, which is good for coal, which is another big part of Trump. We talk a

lot about shale production in the US and how that contributes to the glut

around the world of oil and gas and keeps prices suppressed. It is a

dramatic level to which prices have dropped. That will surely just

encourage the shale producers to keep pumping the stuff out.

Absolutely. Shale production is a new technology. We have seen huge

increases in the advancement of those techniques. That creates more

supply. With the latest down and pick in crude prices, we are

starting to see a slowing in drilling activity in the US, but it

is still healthy. The demand for oil is not going to be helped by big car

companies like Volvo and VW saying they are going to do try and get rid

of their internal combustion engines and go electric. Tesla today were

unveiling their mass-market model. This is the big threat for oil. The

electrification of transport. It is exciting because it is new

technology and it is very good for the climate. But within that, you

need to have low carbon fuels generating a lot of electricity. Gas

plays into that because it is a lot less carbon intensive than oil or

coal. So when you look ahead as a transition fuel, gas has a big role

to play. That is why it is so high on the agenda. Trevor, good to talk

to you. Let's take a look at some of

the other stories making the news... Tobacco giant Philip Morris has been

ordered to pay millions of dollars in legal fees after unsuccessfully

suing the Australian government In 2012, Australia legislated that

cigarettes must be sold in unappealing packets

with graphic health warnings. The International Permanent Court

of Arbitration hasn't published the amount Philip Morris must pay,

but Australian media Kuwait Airways and Royal Jordanian

have become the latest Middle Eastern airlines to remove

restrictions on passengers taking laptops in the cabin

on US-bound flights. Both carriers said they had

worked with US officials The US imposed the ban in March

on direct flights from eight mainly Muslim countries to address fears

that bombs could be The former boss of one of the UK's

leading supermarket chains, Sainsbury's, has told the BBC that

Brexit will mean higher food prices, Justin King says the UK food

system has been shaped by the European Union for 40 years

and leaving will be tough The Chinese shipping giant Cosco

look set to buy its Hong Kong and would make Cosco the world's

third biggest shipping company. Monica Miller is in our

Asia Business Hub in Singapore. What more do you have on this? Cost

those stocks are gaining traction after the news broke of the weekend

that the shipping company offered to buy its rival, Orient Overseas

International out of Hong Kong for $6.3 billion. That will make it the

third biggest container ship company in the world. This comes at a

crucial time for the Chinese government that wants to raise its

global shipping profile, which was a big part in its initiative aimed at

increasing a supply chain to the West. They will now have 400 vessels

to achieve that goal. But analysts say that the sooner shares often

fall after an announcement like this. But Cosco's stock rose to its

highest in almost two years today. Monica, thanks.

Tokyo stocks closed higher as Chinese data kept investors

upbeat on the global economy while a weak yen boosted exporters.

They were also lifted by Wall Street's strong

performance on Friday, while the US dollar extended gains

made after much stronger than expected June employment data.

Let's show you how the European markets begin the trading week. All

of them are in positive territory. We will see what Janet Yellen as to

say when she makes her speech later this week. What the US Fed does will

have an impact on other markets around the world. We will get into

that in a moment. Samira Hussain has the details

about what's ahead On Monday, a trial is set to begin

against General Motors. The claim is that a faulty ignition

switch caused a power failure General Motors has conceded

that an earlier version of the switch was defective,

but denies any such problem with the newer version at issue

in this upcoming trial. The other big event happening

this week is of course the Federal Reserve chair

Janet Yellen's testimony This is her semi-annual appearance,

where she will be asked questions No doubt she will certainly be asked

about the Fed's plan to reduce some Finally, the week ends

with a bit of a bang as some of America's biggest banks

will report second-quarter earnings. Joining us is Jeremy Stretch,

head of currency strategy Let's start with talking about the

US dollar. It has been given a boost by better-than-expected jobs

numbers. Indeed. The US Labour market continues to generate a large

number of jobs. The Labour market is tight in the US. That implies that

economies are growing at a reasonable clip and by virtue of

that, that suggests that the Fed's policy of raising rates gradually

still has further to run. So that sets the template for Yellen's

testimony on Wednesday and Thursday this week. Talking of that, what are

your main expectations to come out of that? As I say, the markets are

looking for the backdrop of the interest rate story. Not only what

they will do about interest rates, but also what they will do about

balance sheets. They have bought huge numbers of US Treasuries. They

need to gradually release those back into the market. Markets will be

looking for signs on both interest rates and the balance sheets, and

that will have implications for the dollar and other global banks. Other

central banks are considering raising rates as well. They will

also be looking for hints about the Fed started paper it's balance sheet

and selling the bonds it holds. Indeed. We have seen interest rates

in terms of bonds are moving significantly, so that does create

uncertainty in relation to things like mortgage rates, because if bond

yields were to rise too quickly, that would push up mortgage rates or

would risk pushing them up. So there is a difficult balancing act here,

and markets are watching to see how Janet Yellen will pursue that over

the next few weeks. Another major economy we all look too is China.

They had some inflation data out. They did. They had both consumer and

producer price inflation, and those numbers were in line with where the

market would like things to be. We were not seeing prices moving too

slowly so we were not seeing a defect risk. But we are not seeing

prices are increasing too quickly, which would imply that the central

banks would need to move faster. So it is a Goldilocks scenario as far

as the Chinese inflation story is concerned. Inflation is going up,

but not too quickly. One of the by-products of that is what is

happening in the oil markets, going to your previous discussion. It is

important that we don't see oil prices moving up to dramatically,

because that would have implications for inflation. We have that major

meeting of Opec members later in the week. Jeremy, you will take us

through the papers later. We'll get the inside track

on a new charity trying to keep our oceans alive

for Generation Z. You're with Business

Live from BBC News. The takeaway industry is said

to be worth ?4.5 billion, but a new trade group representing

the sector says it's struggling. The British Takeaway Campaign -

a new umbrella group representing the sector -

has commissioned a report from the Centre for Economics

and Business Research and it shows despite the record number

of jobs in the sector, businesses are struggling

with recruiting staff and inflation Graham Corfield is the managing

director at Just Eat, What changes do you want to see? It

is important to celebrate the success we have had and to keep

things running. British businesses contribute to the economy. Right

now, the challenges are around skill shortages and the impact of the

recent rates evaluation. What practical steps can be done to

improve the situation for businesses? At British Takeaway

Campaign we are keen to talk to the Government on the skills shortages

side around vocational training, British people see takeaway as a

career opportunity and huge opportunities within it, we're

working with the Government to make sure that vocational qualifications

include a takeaway module within it so that it addresses the skills

shortages across many cuisines. There is certainty as we head to the

Brexit discussions and the immigration system, making sure both

EU and non-EU workers working in the sector today are assured of their

roles but equally understanding that the new rules as they go forward

understand there are specialist skills sets that underpin the

sector. Do you feel the Government is listening to you? It is great to

see some certainty is being issued. When I talk to restaurant owners

they are concerned it could have a serious impact on the sector, it is

a 9.5 billion sector and we need to sustain it to make it continue. We

are going to have to leave it there, thank you, you are watching Business

Live. As the oil industry gathers in

Turkey, prices are up slightly. Let's have a look at the markets are

faring. The main indices across Europe, this is how they look at the

start of the trading week. All in positive territory.

And now let's get the Inside Track on a social enterprise

which is hoping to raise awareness of environmental issues.

We Are The Oceans aims to tackle the issue of plastic waste

in the world's oceans, and it's taking aim

The not-for-profit organisation focuses on getting its message out

via millennial-friendly mobile games, and collaborations with

We Are The Oceans has already generated support

from gaming giant Rovio - the creator of Angry Birds -

fashion house H, and global sports brand Vans.

We're joined by Daisy Kendrick, the founder of We Are The Oceans.

Thank you for joining us here in the studio. We began by saying that your

organisation is aimed at raising awareness amongst young people,

so-called generation Z. Your generation, if you like? Exactly,

our aim is to bring the oceans to the most connected generation using

technology, gaming and platforms we engage with every single day. How

easy or difficult was it to get onto, for example, the makers of

Angry Birds and say, we want to do something with you, because their

brand is so strong, they have a well-established business, how

receptive were they? They were very receptive, they have a huge existing

audience and we, as a charity, could tap into that and reach people on

their terms and engage them in experiences that they are already

engaging with, and Rovio were open to supporting the cause and pursuing

their social responsibility angle with us as well. It is impressive

stuff, because, if you don't mind me saying, you are only 23 said to get

onto a platform like Angry Birds is hugely impressive, but it is not

just gaming apps and things, it is things like music festivals and

more? We are appealing to millennials with music as well, we

have a collective and will be releasing a song later in the year

called We Are The Oceans but we have multiple versions of the song using

mainly YouTube influences to do their version and spread their

version of the song to their audiences. I wonder what your aim is

with the organisation because it has been going for eight months now so

still fairly early days, what is your ambition for a? Our ambition is

to educate as a primary cause, but we also want to support small island

developing states and those communities that are completely

dependent on their oceans for their livelihood, their food and their

income. Overfishing is a major concern, isn't it, and as I

understand you began with an on project in March this year in Haiti,

where it is a huge problem? We started with the community on the

Western point of the island that is in famine, ten years ago the

community was driving with fish to eat and sell at market but today

because of overfishing, pollution and climate change this community is

dependent on food packages. How do you fund the campaign? We are

fortunately supported by the United Nations office of projects and

services who are a division of the UN, who are great supporters of this

start-up campaign, which is quite unique. Do you have any ambitions to

source more private funding? Jess, private funding and collaborations

with brands in particular because We Are The Oceans is striving to bring

innovation into supply chains and fund and develop alternative

products, and until sustainability becomes the norm in the supply

chains, big change for the environment will not be able to

succeed. I was going to say, that is where the challenge comes because

you can get individual consumers to change their habits but until you

get the big brands to buy into it and the big retailers, it almost

feels part like a drop in the ocean whatever we do. By 2020, generation

Z will be 40% of the consumer market, and they are seeking and

wanting to buy sustainable products but there is not enough in the

market right now. Daisy, thank you for coming on, we wish you the best

of luck with everything. Daisy Kendrick there, founder and CEO of

We Are The Oceans. Let's bring you the latest

in our CEO Secrets series where we ask the bosses

of the world's biggest organisation Today it's the turn

of Alex Beard, chief executive It's got to be all about the people.

I'm Alex Beard, chief executive of the Royal Opera House, and I have

the very best job in the world! Every single night, round about 300

people come together to make something pretty well impossible

happen on our stages, and that is to present Lyric theatre, ballet and

opera at the very highest level and that means individual passion but

also organisational brilliance. The machine has got to work like a lot

work towards that 7:15pm moment when the lights go down, the curtain goes

up, and you, the audience, are transported into a different world

and a different sense of yourself. So each individual needs to feel

passionate sense of commitment about what goes on stage. Simply, hire an

amazing group of people, give them the space to thrive and keep

questioning. What other business

stories has the media been Jeremy Stretch is joining

us again to discuss. Good to see you. Let's begin with

the story that we saw in the FT, it is an interview by the CEO of

Netflix, the movie and TV streaming app platform. What did you make of

the interview? It was quite telling insight into the man behind what has

become a phenomenon. It really is a phenomenon because if you consider

the humble origins of the company in terms of going back to how we use to

watch films on television via external recording systems to now

having an industry heavyweight creating its own content, that is a

fascinating things because of course the company is very much driving the

market, creating its own content and demanding that others follow through

and in a sense it creates a changing business landscape because of course

it is one of the driving forces behind the sky 20th Century Fox deal

so it is a driver in the market. He gave an interesting insight into the

culture of the organisation, saying that adequate performance wasn't

enough, that result in some sort of severance package, he also touched

on the fact that Netflix is a highly competitive arena competing with

pretty much everyone and everything, including our sleep, and we put that

out to view was this morning, whether our streaming viewing

habits, because it is so mobile now that we can do it on our phone that

night, is it getting in the way of our speed? That appears to be the

case and psychologists would argue if you are looking at streaming

devices late at night it will create blue light which disturbs your sleep

patterns, creating a raft of other issues, psychological issues, so in

a sense there is this mass of content we can see on all different

platforms, not just a case of sitting in front of the television.

As anybody on the underground knows, you will see people watching things

they have downloaded, so there is this inexorable process of almost 24

hours which is creating a compete with our sleep in certain cases. And

the CEO, Reed Hastings, says it has been a dizzying ride but it is just

at the beginning. Jeremy, do you have a unicorn in

your basement? Not as far as I am aware! This is extraordinary, it is

on the BBC News website, and man who built a ?1 billion computer firm in

his basement, one of those entrepreneurial stories that people

aspire to. And it is, it has taken a prolonged period and was clearly an

enormous risk for this individual to decide to set up his own computer

company in his basement, in a small city outside of Toronto which I have

visited on a number of occasions and had no idea of this company so it is

a story that is fascinating to me as well, but it underlines the fact

that if you have an idea, in fact he did not have the idea until he

started the process, but if you have an idea, you can create a business.

Good to talk to you. We will see you soon, goodbye.

Good morning, it has been muggy night across the south-east, fresher

further north, over the coming days