Browse content similar to 25/08/2017. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Bland and Jamie Robertson. | :00:07. | :00:10. | |
The de facto boss of the South Korean giant faces five | :00:11. | :00:15. | |
years in jail for crimes ranging from bribery to perjury. | :00:16. | :00:17. | |
Live from London, that's our top story on Friday the 25th of August. | :00:18. | :00:40. | |
As a court in South Korea finds Samsung heir Jay Y Lee | :00:41. | :00:45. | |
guilty of paying bribes, we ask what it means | :00:46. | :00:47. | |
Plus, the flying kangaroo bounces ahead of its rivals. | :00:48. | :00:50. | |
Qantas has posted blockbuster results today, despite | :00:51. | :00:52. | |
This is how the European markets look at the start of the trading | :00:53. | :01:01. | |
day, investors around the world will look to the meeting of the world's | :01:02. | :01:11. | |
Central bank happening in Wyoming. Slowing demand for the latest | :01:12. | :01:17. | |
smartphones. Our own technological Guru Rory Cellan-Jones will be with | :01:18. | :01:22. | |
us. It's announced self driving lorries will be tested on UK roads, | :01:23. | :01:26. | |
so we ask if you would be happy driving next to a 44 tonne | :01:27. | :01:31. | |
driverless juggernaut. Use the hashtag to get in touch. | :01:32. | :01:44. | |
Some tweets coming in, one viewer says it's terrifying but exciting, | :01:45. | :01:51. | |
the thought of driving next to a driverless truck. | :01:52. | :01:54. | |
A court in South Korea has found the heir to the Samsung | :01:55. | :01:57. | |
empire guilty of bribery, embezzlement and perjury. | :01:58. | :02:00. | |
Jay Y Lee, the de facto head of the $300 billion | :02:01. | :02:05. | |
business empire - and grandson of the founder - | :02:06. | :02:08. | |
has been sentenced to five years in jail. | :02:09. | :02:10. | |
It started with this - $36 million donated by Samsung | :02:11. | :02:27. | |
to organisations linked to former South Korean president | :02:28. | :02:29. | |
She was removed from office and is also facing corruption charges. | :02:30. | :02:33. | |
Back in 2015 the Samsung conglomerate was undergoing | :02:34. | :02:35. | |
restructuring, with a controversial merger of two of its businesses. | :02:36. | :02:38. | |
Prosecutors argued the aim was to boost Mr Lee's personal | :02:39. | :02:44. | |
power over the company, which he's been running since his | :02:45. | :02:47. | |
The deal needed shareholder backing from the national pension fund, | :02:48. | :02:54. | |
which is run by the South Korean Government. | :02:55. | :02:58. | |
Prosecutors argued the donations were bribes to win | :02:59. | :03:01. | |
The affair has once again raised concerns | :03:02. | :03:06. | |
about South Korea's business culture - and the huge family-owned | :03:07. | :03:10. | |
They've long been seen as too cosily linked to government - | :03:11. | :03:17. | |
and not sufficiently transparent in their dealings. | :03:18. | :03:18. | |
To give you an idea - sales by Samsung companies account | :03:19. | :03:24. | |
for around a fifth of South Korea's entire economy. | :03:25. | :03:34. | |
Our business reporter Yogita Limaye is outside the courthouse in seoul | :03:35. | :03:38. | |
All these pieces linked together by the prosecutors and the judge | :03:39. | :03:45. | |
believed there was a proper link between the payment of this money | :03:46. | :03:48. | |
right the way through to basically corruption at government level? | :03:49. | :03:55. | |
That's right. What the court has said is that this money was paid to | :03:56. | :04:02. | |
get President Park, the former president of South Korea's support | :04:03. | :04:05. | |
for the merger of the two Samsung companies to pave the way for Mr Lee | :04:06. | :04:10. | |
to eventually become boss of the firm. The court found him guilty | :04:11. | :04:16. | |
also of embezzlement, perjury and hiding assets over seas. The | :04:17. | :04:22. | |
five-year sentence is significant. This is not the first time the boss | :04:23. | :04:27. | |
of a big conglomerate has been found guilty or convicted, but in the past | :04:28. | :04:32. | |
the sentences have been suspended or they have presidential pardons. Mr | :04:33. | :04:38. | |
Lee's lawyers have already said they will appeal, but if he does end up | :04:39. | :04:43. | |
spending a significant amount of time in jail, that will be a | :04:44. | :04:47. | |
departure from what we have seen here in the past. The new president | :04:48. | :04:53. | |
who won elections after the former president was impeached over this | :04:54. | :04:58. | |
entire corruption scandal, the new president has said there will be no | :04:59. | :05:01. | |
more presidential pardons and they want big conglomerate 's ear to | :05:02. | :05:08. | |
clean up. If we see Mr Lee Knauss is now spending a large amount of time | :05:09. | :05:14. | |
in jail, it gives a message for other businesses to clean themselves | :05:15. | :05:20. | |
up. How significant is this for South Korean business culture? | :05:21. | :05:27. | |
Firstly, think about what the Samsung group means for this | :05:28. | :05:31. | |
country. It would be hard to find a person in the country who has not | :05:32. | :05:34. | |
used a Samsung product or service. They are not just smartphone makers | :05:35. | :05:40. | |
in the country, they are into construction, shipbuilding, | :05:41. | :05:43. | |
insurance. There are Samsung hospitals and universities and even | :05:44. | :05:46. | |
a Samsung amusement park. They account for a fifth of the economy | :05:47. | :05:50. | |
here. Speaking to people about what they think about the trial, I have | :05:51. | :05:54. | |
seen a distinction between what the younger people think and older | :05:55. | :06:01. | |
people. Younger people are anti-corruption and want to see | :06:02. | :06:04. | |
justice done, whoever it is. A lot of older people remember Samsung and | :06:05. | :06:08. | |
big conglomerate seer as being the companies that pulled the country | :06:09. | :06:11. | |
out of poverty after the Korean War in the 1950s and into a good | :06:12. | :06:18. | |
economic place. That's way they say there should not be a severe | :06:19. | :06:22. | |
sentence. Outside the court we have seen protests both ways, people | :06:23. | :06:27. | |
protesting against corruption, and also people who are pro the former | :06:28. | :06:29. | |
president and therefore pro-Samsung. A bit of breaking news. The British | :06:30. | :06:39. | |
Foreign Minister Boris Johnson has told the BBC that he thinks some of | :06:40. | :06:45. | |
the sums for Brexit seem to be very high indeed. In his words, he says | :06:46. | :06:51. | |
we should not pay a penny more or a penny less than we think our legal | :06:52. | :06:54. | |
obligations amount to in the Brexit built talks. That was the British | :06:55. | :07:03. | |
Foreign Secretary on his thoughts on the British exit will. The | :07:04. | :07:09. | |
government will be publishing its position papers as it entered the | :07:10. | :07:11. | |
next stage of negotiations. Let's take a look at some | :07:12. | :07:13. | |
of the other stories Music streaming service Spotify has | :07:14. | :07:15. | |
signed a new licensing deal with Warner Music Group - | :07:16. | :07:19. | |
paving the way for After deals with Sony and Universal, | :07:20. | :07:21. | |
Warner was the last of the three big record labels to agree to renewed | :07:22. | :07:26. | |
terms to make its catalogue available to Spotify's | :07:27. | :07:29. | |
140 million users. Investors have been selling off | :07:30. | :07:33. | |
shares of supermarkets in the US after Amazon said it | :07:34. | :07:36. | |
would complete its takeover The e-commerce giant plans | :07:37. | :07:38. | |
to sell Whole Foods brand products on its website, | :07:39. | :07:44. | |
integrate its systems to offer Prime members discounts and provide Amazon | :07:45. | :07:47. | |
pick-up spots at Whole Foods stores. Walmart, Target and Costco | :07:48. | :07:50. | |
all saw their shares fall. Small convoys of partially | :07:51. | :07:56. | |
driverless lorries will be tried out on major British roads by the end | :07:57. | :07:59. | |
of next year, the government A contract has been awarded | :08:00. | :08:02. | |
to the Transport Research Laboratory to carry out the tests | :08:03. | :08:10. | |
of vehicle "platoons". Up to three lorries will travel | :08:11. | :08:15. | |
in formation, with acceleration and braking controlled | :08:16. | :08:17. | |
by the lead vehicle. We have been asking you for your | :08:18. | :08:29. | |
thoughts about that. Steve has said he prefers the idea of driverless | :08:30. | :08:33. | |
lorries than me sometimes swerving human version. Let us know if you | :08:34. | :08:37. | |
agree with Steve or if you take the opposite view. They call it elephant | :08:38. | :08:42. | |
racing when the two trucks are racing each other. As you not heard | :08:43. | :08:47. | |
that expression? Elephant racing up the motorway. | :08:48. | :08:54. | |
Australian airline Qantas has posted its second best | :08:55. | :08:57. | |
annual profit ever - despite fierce competition from its rivals. | :08:58. | :09:02. | |
Boss Alan Joyce is calling it a vindication of his three | :09:03. | :09:04. | |
year turnaround plan - which has involved | :09:05. | :09:06. | |
Christine Hart is in Singapore for us. Three years of pain for some, | :09:07. | :09:21. | |
but apparently it has paid off. It's paid off in a very spectacular way. | :09:22. | :09:29. | |
Pre-tax profits at just over 1.1 billion, the second highest profit | :09:30. | :09:33. | |
the airline has seen in its entire 97 year history. That's saying quite | :09:34. | :09:38. | |
a bit. They also on Jet Star. Qantas credits those result to effective | :09:39. | :09:44. | |
cost-cutting measures and a very robust domestic travel market. Its | :09:45. | :09:48. | |
loyalty business has seen very strong growth. Going forward, | :09:49. | :09:53. | |
improving the customer experience, we talk about Wi-Fi, better Wi-Fi, | :09:54. | :09:57. | |
lounges and services, all those offerings will be more important in | :09:58. | :10:05. | |
its strategy. It will also expand offerings for trips. It will have | :10:06. | :10:11. | |
Perth to London direct next year. It will also be working on Sydney to | :10:12. | :10:17. | |
London by 2022. For now, Alan Joyce has said the turnaround is complete | :10:18. | :10:21. | |
and that's what we have to go on. Thank you, Christine. Let's take a | :10:22. | :10:28. | |
look at how the markets are doing. Asian stocks advanced on Friday. | :10:29. | :10:33. | |
Once again shrugging off a sluggish day on Wall Street. Tokyo stocks | :10:34. | :10:38. | |
rising, as Tokyo and Honda chalked up games with investors focusing on | :10:39. | :10:42. | |
the key meeting of the world's top central bankers gathering in | :10:43. | :10:49. | |
Wyoming. We can flip the boards to show you the European markets. | :10:50. | :10:52. | |
That's how they start the trading day, all in positive territory. We | :10:53. | :10:58. | |
can take a look ahead to what we might expect from the Wyoming | :10:59. | :11:03. | |
meeting in Jackson Hole. And Michelle Fleury has | :11:04. | :11:08. | |
the details about what's ahead Investors' attention this | :11:09. | :11:10. | |
Friday will be on a small resort town in Wyoming - | :11:11. | :11:13. | |
not for the fly fishing, but for the annual gathering | :11:14. | :11:15. | |
of central bankers from around US Federal Reserve chair | :11:16. | :11:18. | |
Janet Yellen speaks in the morning. Mario Draghi, the head | :11:19. | :11:21. | |
of the European Central Bank, In the past, this meeting has been | :11:22. | :11:24. | |
used to make big announcements - not this time, according | :11:25. | :11:28. | |
to many market watchers. Well, because even though the US | :11:29. | :11:30. | |
and Europe are stepping back from the stimulus measures | :11:31. | :11:34. | |
introduced after the financial crisis, Ms Yellen and Mr Draghi have | :11:35. | :11:36. | |
good reasons to keep their cards With Janet Yellen's future | :11:37. | :11:41. | |
at the Federal Reserve uncertain, few expect her to make | :11:42. | :11:47. | |
any ground-breaking statements. And even though Mario Draghi's | :11:48. | :11:50. | |
speech is seen as perhaps more significant this time, | :11:51. | :11:53. | |
he may choose to play it safe. The markets got excited | :11:54. | :11:58. | |
after a recent speech he gave at another central bank conference | :11:59. | :12:01. | |
in Portugal, and he was forced On the economic front, | :12:02. | :12:04. | |
watch out for the latest durable goods orders, | :12:05. | :12:09. | |
that's due to be released Joining us is Nandini Ramakrishnan, | :12:10. | :12:11. | |
global market strategist at Good to see you as always. Plenty to | :12:12. | :12:30. | |
talk about. All eyes on the world's Central bankers and whether we will | :12:31. | :12:33. | |
get hints from any of them about balance sheets tapering and moves on | :12:34. | :12:39. | |
interest rates. The big ones to watch our Janet Yellen and Mario | :12:40. | :12:44. | |
Draghi. Both central banks doing a lot with their policy this year. | :12:45. | :12:48. | |
Janet Yellen of the Federal reserve, will they reduce the amount of | :12:49. | :12:52. | |
assets they have lost tonight all the bonds they have been buying in | :12:53. | :12:55. | |
the last few years, all stuck in a vault somewhere. That's how I like | :12:56. | :13:00. | |
to think of it. It's been ten years since the crisis, starting to reduce | :13:01. | :13:04. | |
that will have an effect on the market, specifically longer term | :13:05. | :13:09. | |
government bonds in the US. They suggested that they would do it so | :13:10. | :13:12. | |
slowly and other such a long period of time, some of the bonds will | :13:13. | :13:16. | |
mature and disappear anyway so we will not even notice. That's a bit | :13:17. | :13:20. | |
of an overstatement and I think we will notice in the market. We will | :13:21. | :13:24. | |
see yields and interest rates over the longer ten or 30 year bonds will | :13:25. | :13:28. | |
go up because there is less demand from the big buyer, the Federal | :13:29. | :13:30. | |
reserve, buying them up over the last ten years. All the idea of | :13:31. | :13:37. | |
long-term and short-term interest rates starting to rise over the next | :13:38. | :13:41. | |
couple of years. Ticking up slowly. Different dynamics will be reflected | :13:42. | :13:47. | |
in the yield curve and it will move differently across the world. On the | :13:48. | :13:53. | |
mind of Mario Draghi as president of the European Central Bank, if he | :13:54. | :13:57. | |
starts to raise interest rates for the Eurozone, we could see the euro | :13:58. | :14:01. | |
strengthened and that could be a problem for the European exporters. | :14:02. | :14:08. | |
For the ECB, compare to the US Fed, they are behind. They are not | :14:09. | :14:11. | |
reducing the amount of assets, they are thinking about reducing the | :14:12. | :14:17. | |
amount day at every month. The euro has been one of the strongest | :14:18. | :14:19. | |
performing currencies over the course of the year and it could | :14:20. | :14:22. | |
affect big exporting nations like Germany who have a lot of revenues | :14:23. | :14:26. | |
coming from abroad. Watching that currency will be very important. | :14:27. | :14:30. | |
Stick around, we will talk to you about the papers later in the | :14:31. | :14:31. | |
programme. Still to come, this | :14:32. | :14:33. | |
week's digital takeaway. Technology correspondent | :14:34. | :14:38. | |
Rory Cellan-Jones will chart a path through all the big tech stories | :14:39. | :14:40. | |
of the week, including the news that Estonia is looking | :14:41. | :14:43. | |
at launching its own You're with Business | :14:44. | :14:45. | |
Live from BBC News. Now, big brands influence | :14:46. | :14:58. | |
what we buy through clever advertising on billboards, | :14:59. | :15:01. | |
TV and social media. But in an increasingly | :15:02. | :15:04. | |
crowded world, how are they going to connect | :15:05. | :15:08. | |
with consumers in the future? Let's talk more with our business | :15:09. | :15:11. | |
correspondent Ben Thompson. He's at a 2,000 square feet | :15:12. | :15:13. | |
showroom called The Home Where is it? Here is by the fridge | :15:14. | :15:32. | |
at the back! Here is getting a beer! Increasingly backed fridge this | :15:33. | :15:35. | |
morning, as well as the media market, in which all of this works. | :15:36. | :15:39. | |
We are at the house of the future, and if you think it is dark, this is | :15:40. | :15:43. | |
all wired up, so let me try this. Kitchen lights on. And there we go, | :15:44. | :15:50. | |
the lights come on. So this is just one example of a wired home, and all | :15:51. | :15:55. | |
of the stuff in this place is pretty hi-tech, so your TV can speak to | :15:56. | :15:59. | |
your fridge, it knows what is in the fridge, because it has got a camera, | :16:00. | :16:05. | |
and it will know from your online deliveries when it is due to go off. | :16:06. | :16:09. | |
It will suggest recipes, it will even turn on the oven to tell you | :16:10. | :16:14. | |
when to put it in, and when to take it out, crucially. Just some of the | :16:15. | :16:18. | |
examples of things you can do in a wired home. Simon, good morning, you | :16:19. | :16:23. | |
are a futurist here, you have been showing me all sorts of things, this | :16:24. | :16:27. | |
looks a little bit more day to day, rather than some of the high tech | :16:28. | :16:38. | |
stuff. Shall we by a chair in augmented reality? We will select | :16:39. | :16:44. | |
this wicker chair, and with millimetre accuracy, it is now going | :16:45. | :16:53. | |
to PA on the floor, OK? I can adjust the position, rotated, then I take a | :16:54. | :16:58. | |
photo, click, share that photograph on my social networks and ask my | :16:59. | :17:01. | |
friends whether I should buy it or not. Really interesting stuff, the | :17:02. | :17:08. | |
technology is an increasingly big part of our lives, and it is | :17:09. | :17:13. | |
changing the way that brands sell to us. Traditionally they would have | :17:14. | :17:16. | |
used billboards, radio and television, but now they know we | :17:17. | :17:20. | |
bought a shirt last week and you will need a pair of trousers to go | :17:21. | :17:23. | |
with it this week. More from me later. | :17:24. | :17:29. | |
Just a quick look at the Business Live page. Business is not able to | :17:30. | :17:36. | |
invest in staff because of increased costs. | :17:37. | :17:39. | |
You're watching Business Live, our top story: | :17:40. | :17:43. | |
A court in South Korea has sentenced the de facto boss of the technology | :17:44. | :17:46. | |
giant Samsung to five years in prison after finding him guilty | :17:47. | :17:49. | |
of paying bribes in hopes of obtaining government favours. | :17:50. | :17:57. | |
A quick look at how the markets are faring, these are the numbers, a | :17:58. | :18:08. | |
little bit mixed. The pound against the dollar, that is falling a little | :18:09. | :18:17. | |
bit, just below 1.28. We are slightly on the way down, but also | :18:18. | :18:21. | |
down against a strong euro, which is not on the screen at the moment. | :18:22. | :18:23. | |
It's been yet another busy week in the technology world. | :18:24. | :18:26. | |
Samsung is once again making headlines with the jailing | :18:27. | :18:28. | |
Britain's largest retailer of smartphones, | :18:29. | :18:33. | |
retailer Dixons Carphone, is blaming consumers' reluctance | :18:34. | :18:35. | |
to upgrade for an unexpected profit warning. | :18:36. | :18:39. | |
Meanwhile, the country Estonia wants to launch its own government-backed | :18:40. | :18:42. | |
Joining us now is our technology correspondent Rory Cellan-Jones. | :18:43. | :18:52. | |
Rory, good to see you, so which one shall we start with, Samsung? The | :18:53. | :19:02. | |
company seems to be doing OK despite all of this? I was writing this week | :19:03. | :19:09. | |
about the launch of its new giant phone, this time last year we were | :19:10. | :19:15. | |
reporting on the Galaxy note 7 exploding, a terrible product | :19:16. | :19:17. | |
recall, complete disaster, then we had the news of the bass being | :19:18. | :19:21. | |
arrested, we have seen what happened at there, so you would have thought | :19:22. | :19:27. | |
a terrible year. But no such story, really, it has gone from strength to | :19:28. | :19:31. | |
strength, record profits, it made more profits in the quarter than | :19:32. | :19:37. | |
Apple recently, which is quite some achievement. Its share prices | :19:38. | :19:40. | |
hitting record highs. It is showing a steely determination to just carry | :19:41. | :19:46. | |
on. It could have abandoned this Note phone altogether, it abandoned | :19:47. | :19:53. | |
the Note 7, it could have retired the brand, but they have loyal | :19:54. | :19:56. | |
customers who have come back, and all the signs are that this new | :19:57. | :20:02. | |
phone will be a success. So yet again, it is Samsung versus Apple, | :20:03. | :20:07. | |
we are back to where we were, two very strong companies battling it | :20:08. | :20:12. | |
out. I'm fascinated about the Estonian crypto currency, I know | :20:13. | :20:16. | |
this is terribly prejudice, but it doesn't fill me with confidence, the | :20:17. | :20:22. | |
idea of an Estonian crypto currency. Estonia is an extraordinary little | :20:23. | :20:25. | |
nation that has prided itself on being very advanced in all things | :20:26. | :20:30. | |
digital, it runs its governor and very largely online, all sorts of | :20:31. | :20:33. | |
services online, and it has got this initiative called e-residency. I am | :20:34. | :20:41. | |
an Estonian e-resident. I have got the right to start a business | :20:42. | :20:46. | |
remotely in Estonia. Did it cost anything? It cost 100 euros. It | :20:47. | :20:51. | |
gives you the right to start a business remotely in Estonia, and | :20:52. | :20:56. | |
they see it as a way of a small nation, little over a million | :20:57. | :21:01. | |
residents, it gives it great power, they think, to advance their digital | :21:02. | :21:12. | |
cause. And they put out a blog saying that the growth of | :21:13. | :21:15. | |
e-residence is higher than their birth rate, and they are thinking of | :21:16. | :21:19. | |
launching their own crypto currency. They float lots of ideas, but this | :21:20. | :21:23. | |
is very interesting, it would be called Estcoin, it would be | :21:24. | :21:29. | |
available to e-residence as a way of trading with all the security that a | :21:30. | :21:32. | |
crypto currency theoretically offers. -- e-residents. But surely | :21:33. | :21:40. | |
there is a contradiction, because crypto currencies do not have | :21:41. | :21:45. | |
borders, no central bank, nothing to do with nations. Exactly, I have | :21:46. | :21:51. | |
been interviewing the guy behind the scheme, and he is admitting that | :21:52. | :21:56. | |
coming says it is time for somebody to float this idea, because central | :21:57. | :22:00. | |
banks are going to have to get their head around the fact that people | :22:01. | :22:03. | |
will be using these currencies, they may be using them to avoid tax, so | :22:04. | :22:07. | |
better that we start to bring the idea within the realm of government. | :22:08. | :22:13. | |
And another story that was really interesting is phone upgrades, | :22:14. | :22:17. | |
people becoming a little bit more frugal, holding off upgrading just | :22:18. | :22:22. | |
for a while, causing problems. Yeah, we heard this from Dixons Carphone | :22:23. | :22:26. | |
this week, big profits warning, based solely on the fact that it has | :22:27. | :22:32. | |
got a theory, it thinks people are holding off renewing their phones | :22:33. | :22:36. | |
after two and a half years rather than two, and that six months has | :22:37. | :22:40. | |
put a huge hole in their prospective profits. And I have got a theory as | :22:41. | :22:45. | |
to why this is happening - two fantastic modern smartphones, they | :22:46. | :22:48. | |
look just about identical, you probably couldn't tell which is | :22:49. | :22:54. | |
which, and they are all incredibly capable, all incredibly expensive, | :22:55. | :23:01. | |
pushing $1000, ?900 these days, and that is looking very expensive to | :23:02. | :23:05. | |
people. And people are beginning to think, my current phone is great, | :23:06. | :23:09. | |
what is this new one going to give me that is so different? They are | :23:10. | :23:14. | |
altering off the upgrade decision. Thanks very much, really good to get | :23:15. | :23:19. | |
your thoughts on all of that. You can come again! The phones didn't | :23:20. | :23:25. | |
ring either, so even more welcome expect | :23:26. | :23:25. | |
In a moment, we'll take a look through the business pages, | :23:26. | :23:28. | |
but first here's a quick reminder of how to get in touch with us. | :23:29. | :23:31. | |
The Business Live page is where you can stay ahead | :23:32. | :23:33. | |
with all the breaking businesses of the day keep up to date | :23:34. | :23:36. | |
with the latest details with insight and analysis from the BBC's team | :23:37. | :23:39. | |
get involved on our web page, and on Twitter, | :23:40. | :23:44. | |
Business Live, on TV and online, whenever you need to know. | :23:45. | :23:57. | |
Nandini Ramakrishnan is joining us again. | :23:58. | :24:01. | |
We are going to be looking at the newspapers, one particular story I | :24:02. | :24:08. | |
want to concentrate on any financial times, oil prices. It is quite | :24:09. | :24:18. | |
confusing, all influenced by hurricane. Usually when these risks | :24:19. | :24:23. | |
come to oil producing countries, the price spikes, because we do not know | :24:24. | :24:28. | |
if we will get the ground, but what is tricky about this one is that 45% | :24:29. | :24:34. | |
of US refineries are in the area that is potentially going to be hit, | :24:35. | :24:37. | |
and they are different from producers. When you have not got the | :24:38. | :24:41. | |
refinery functioning, the oil producers cannot sell their oil to | :24:42. | :24:46. | |
get refined, and that is causing the price to go down, rather than up. | :24:47. | :24:52. | |
But it does change, I have seen that headline, but also this headline | :24:53. | :24:56. | |
from the Financial Times saying that prices are going to rise. At the | :24:57. | :25:00. | |
moment, the other thing about Hurricane Harvey is that they did | :25:01. | :25:03. | |
not get warned about it until quite late in the day. More importantly, | :25:04. | :25:08. | |
that is tricky, but for market it is hard to price this, the refinery | :25:09. | :25:13. | |
versus produce a fact, as well as the lack of warning. It highlights | :25:14. | :25:17. | |
the changing influence that groups like Opec have, but sometimes it is | :25:18. | :25:29. | |
far? Events. Yes, far beyond their control, and when you think how | :25:30. | :25:33. | |
important oil prices are, affecting inflation and emerging markets, a | :25:34. | :25:37. | |
lot can be paid off a global move like this. | :25:38. | :25:43. | |
There will be more business news throughout the day on | :25:44. | :25:46. | |
the BBC Live web page and on World Business Report. | :25:47. | :25:53. | |
From us, have a wonderful weekend, we'll see you again soon, bye-bye. | :25:54. | :25:58. |