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This is Business Live from BBC News
with Sally Bundock and Ben Bland.
Two years on from the Paris Climate
deal world leaders are back
in the city to work out how
they are going to pay
for all their promises.
Live from London, that's our top
story on Tuesday December 12.
They need $100 billion
a year to make it work,
and America now won't pay a penny -
so can world leaders come together
today and work out how to fund
the Paris Climate agreement?
Also in the programme,
the price of Brent crude oil has
hit its highest level in two years
after a key pipeline
from the North Sea was shut
due to safety fears.
And the markets across Europe are on
central bank watch with the Fed
meeting starting today. We also have
the European Central Bank the Bank
of England as the week progresses.
And we'll be getting
the inside track on how artificial
intelligence is helping to 'drive'
the self-driving car revolution.
And as world leaders meet to talk
about climate change what steps do
you think they should take? Fewer
flights, less driving, perhaps laced
Let us know.
Just use the hashtag BBCBizLive.
Hello and welcome to Business Live.
Get in touch with your top tips or
ideas when it comes to making us all
a bit more environmentally friendly.
in Paris, on this day, in 2015,
a landmark deal to tackle climate
change was agreed by almost every
nation on the planet.
Now, two years on, national leaders
are meeting back in Paris to discuss
the deal and how to pay for it.
The deal commits 195 countries
to keep the rise in global
temperatures to less than 2 degrees
Celsius from the pre-industrial era.
The International Energy Agency has
estimated it will take
$3.5 trillion a year for the next 30
years to contain that rise
of global temperatures.
As part of the deal rich nations
have agreed to maintain
a $100 billion a year funding pledge
to help developing countries
to adapt and develop
However questions have been
raised over where much
of this money will come
from after President Trump pulled
the US, the world's
second-largest carbon emitter -
out of the deal.
President Trump says
the agreement would cost the US
6.5 million jobs and $3tn in lost
GDP - while rival economies
like China and India
are treated more favourably.
Let's get more on this story
with Helen Mountford,
Global Director of Economics
at the World Resources Institute -
who joins us from Paris.
I suppose the big question is can
they achieve this without America?
There is an incredible momentum
here, I think we have a grouping of
countries, we have got states and
businesses and investors who are
capturing the moment we had in Paris
and moving ahead. We are expecting a
number of announcements later today
on how they are stepping up to help
close the gap both on financing and
What would you like to see
from them in terms of big practical
steps, would be the key things you
think they could agree at this
gathering to try and deal with
I think one of the
most exciting tournaments at the
moment is in the finance sector,
investors and banks are starting to
recognise the importance of
understanding climate related
financial risk and opportunities.
Where the real opportunities of the
future are and those are renewable
energy and storage batteries and
restoring degraded lands. There is
enormous economic and investment
opportunities. They are starting to
see that and they are also seen the
risks of continuing to go on with
business as usual where we invest in
fossil fuel, or reinvest in
congested and polluted cities. The
cost are enormous, an estimated 3
million people per year die of air
pollution alone. When of the
exciting things to look for is for
the investors will say, are they
going to be asking companies to
start disclosing how aligned they
are with the Paris agreement? There
are recommendations on this from the
G20 task force and there are are
already 100 companies and banks that
say they will be commenting these.
Willmore come forward? That's what I
would be looking for today.
that it sounds like your perspective
is the onus, the key momentum needs
to come from businesses rather than
No, it has to come from
everybody, both, business needs
clear policy and regulatory
framework to do their business well.
But a number of them are stepping up
already and moving forward, we also
have a number of countries who are
represented here who were expecting
to come forward and even within the
US we have got an incredible
movement amongst the US states and
cities as well as businesses,
universities, who are still in for
the Paris agreement, who represent
about half of the US economy who
have said they are still intending
to meet the Paris agreement calls.
Thank you very much.
One of the UK's most important
pipelines was stopped after a crack
was discovered. We have our
economics correspondent Andrew
Walker with us. I serious is this?
Serious enough that the pipeline
system will be closed for weeks
rather than days, we do not have a
specific timescale but as you
indicated, it's a very big deal for
the North Sea industry, it has a
capacity of getting on for half a
million barrels per day, to put it
in a global context that is
equivalent to about 10% of the total
oil production of Iran or Iraq so
this is a major disruption to the
Presumably that is why we
have seen such a spike in the price
of Brent crude?
Absolutely, and some
other interesting features, there is
more of an increase in the premiums
you have to pay for delivery now
rather than a few weeks or months.
Also an increase in the premium for
the Brent price from the North Sea
compared with what you are having to
pay for American crude oil. That
also partly reflects has been an
increase in shell production in the
US, but the widening of the premium
for North Sea oil is very much down
to these developments.
Is the time
of year also a factor, because we
are in the middle of the winter.
Absolutely, and there was a bigger
surge in the wholesale price of gas.
It is winter and as I am sure you
noticed it's a particularly cold
phase of this part of winter so
demand is pretty strong and at the
moment we're having this
interruption to supply.
for that. We will keep an eye out.
Let's take a look at some of
the other stories making the news.
France's Unibail-Rodamco has agreed
to buy shopping mall owner Westfield
for $24.7 billion including debt,
in what would be the biggest
takeover of an Australian
company on record.
The deal accelerates consolidation
amid the global retail property
sector as it grapples
with challenges from online
retailers led by Amazon.com.
The Financial Times is reporting
that the world's largest
listed oil and gas group,
ExxonMobil, is to start publishing
reports on the possible impact
of climate policies on its business.
The decision is being seen
as a success for investors who have
been pushing for improved disclosure
on the risks it faces.
Finance ministers in five European
countries have written to their US
counterpart to warn that planned
changes to American tax law
could violate international rules.
In a letter to the US
Treasury Secretary the ministers
argued the proposed changes
would risk having a major distortive
impact on international trade.
These are the Asian markets, closing
down by one third of a percent, the
closing figure is correct but the
big zero is not. The reason markets
in Asia were mixed is not a bit flat
is partly because traders worldwide
are treading water with the Fed
reserve meeting beginning today and
ending tomorrow with the expectation
we could see the cost of borrowing
going up in the world's biggest
economy so let's look at Europe. You
can see the FTSE treading water, it
is the case across Europe, we have
some very stock specific stories,
news that Comcast has pulled out of
the attempts to buy Sky, so it looks
like Walt Disney might be one of the
biggest winners, that's an
interesting one to keep an eye on.
We will keep an eye on markets in
detail at the moment. But let's go
to New York and look ahead to the
day on Wall Street.
All eyes will be on the Federal
reserve as it begins its two day
meeting on interest rates. The Fed
kept interest rates unchanged at the
last meeting and pointed to a solid
US economic growth and the
strengthening Labour market. The
expectation is that the Fed will
raise interest rates. We will not
know until the end of the meeting
which is on Wednesday. Also
happening on Tuesday the Labor
Department will report it producer
price index rose 3% in the month of
November compared with an increase
of .4% in the previous month. And
finally the Treasury Department
report on the federal budget is
expected to show the US Federal
government ran a $134 billion
deficit in the month of November.
David Bloom, Global Head of FX
Strategy at HSBC joins me now.
Lots of central bank action this
It is a busy week before silly
jumper time which will probably
start next week. At the moment we
have the Federal reserve, and as you
said and 97% rate hike, the ECB, the
bank of England, if you are
interested in emerging markets
Russia and Turkey. It's all
happening this week.
Which will grab
your attention? We are all assuming
we will get a rate rise tomorrow in
the US but what about other central
I think the others could be
dull as dishwasher because we are
interested in is what it will tell
us. We think the bank of England
will raise rates again in the first
quarter next year but will they give
us the signal? This is forward
guidance, what they are thinking and
how they are thinking.
difficult for the Bank of England,
in the United States the economy is
doing well, there are issues with
the ability to get reforms through
etc but here in the UK you have got
Brexit, strong pound, inflation
spikes, it's much harder for Mark
It is but central banks
decide what to do and tell us well
in advance so actually the way you
think about it, the central bank
think about it, what we used to do
in the old days is spent how were
they thinking and what they were
thinking, what they might do that
now they just tell us. So life is a
lot easier than it was before and we
have to price it. Maybe that is why
volatility, market going up and down
is practically an adult I'm low at
the moment is the central bank, the
most important central bank in the
world, the Fed, 97% priced in.
they have to deliver!
We get the latest inflation figures
in just under an hour or so and it
will give us an hint as to whether
the Bank of England have made the
right move when the increased
interest rates at the beginning of
Yes the markets are always
looking for justification and
verification but always looking for
the next meeting as well. There was
an interesting story on the oil
pipeline which shows how involved
everything is in financial markets,
what does that mean for the next
inflation numbers? Will the Bank of
England in no it as a temporary
factor? These are the thinking when
you get one little thing, it moves
into all other areas of the market,
oil prices going up, who benefits
and who loses?
Do not give us the
answer to those questions, you will
come back and talk about that later
on. Thank you.
David will be back, including less,
we will speak to one of the brains
behind self driving cars.
About the brains in self driving
cars, we're going to be talking
about how AI and how it's making
the driverless cars a reality.
You're with Business
Live from BBC News.
So we have been talking about the
silly jumper season. In case you
hadn't noticed Christmas is around
the corner and prices are going up.
The British public are well into the
swing of festive shopping.
Joining us now is Fraser McKevitt,
head of retail and consumer insight
at Kantar Worldpanel.
You can us through the latest
figures where they indicate the
biggest amount of activity is?
the overall market is up by 3.1%. It
is at the same run rate it has been
going for at 2017. Supermarkets are
nervously looking forward towards
Christmas because that's a big
trading season for them and shoppers
expect to spend £1.5 billion on the
Friday and Saturday before Christmas
so they have to get it right.
Consumers are feeling the pressure.
Inflation in grocery is currently
running at 3.6% and that's squeezing
budgets so people are having to work
out how them economize.
Will he shop
until we drop on the key dates
before Christmas Day. It is crucial
to the supermarkets profitability in
the New Year?
It's a big question
and we don't really know, but the
indicators are that spending will
continue. Food and drink is not
something you choose not to buy and
the other thing to remember, times
are tough economically for a lot of
people and we want to have a good
Christmas. We want to enjoy
ourselves and spend time and the
money that that requires with our
friends and our family.
retailers do you think will come out
as president winners? Which ones
will come out with the bumper
numbers in the New Year?
divide the market into three easily.
On the one hand we have the discount
retailers in the UK, Aldi and Lidl
and I would expect the growth to
continue over Christmas. Now, they
don't tend to have the highest
market share at Christmas because
people go to the other retailers
more, perhaps some of the more up
market ones, but the discounters
will be shouting about a bumper
Christmas. In the middle we have
everybody else. Where growth is a
little bit difficult. A little bit
sluggish, but Tesco is ahead of
their so-called Big Four rivals and
finally we have online sales. Now
that over the last couple of years
has been a story of extraordinary
growth, but that's slowing.
You're watching Business Live.
Our top story:
On the two year anniversary
of the 2015 Paris climate accord,
President Emmanuel Macron hosts
new summit in bid to ease
financing crunch for climate
A quick look at how
markets are faring.
A fairly mixed, if not flat,
picture. Traders are treading water
ahead of the conclusion of the US
Federal Reserve's meeting in the US
and then we have the Bank of England
and European Central Bank as well
this week too.
The future of motoring -
we're told - is self-driving cars.
Giants like Google and Tesla
and pumping billions into developing
the tech that will bring us
a driverless future.
At the heart of the technology
is artificial intelligence
and our next guest is hoping
to use his own particular brand
of AI will help his firm steal
a march on his bigger competitors.
He's the boss of FiveAI.
It was founded right
here in the UK in 2015
with the aim of creating a world
beating autonomous vehicle company.
Since then its attracted investment
of almost $27 million.
It may seem like a lot,
but is it enough to compete?
Globally, it's been estimated
that there have been 160 deals
in the last three years alone,
aimed at developing
And its thought total
investment in that time has
been around $80 billion.
Stan Boland is the boss
of FiveAI and joins me now.
Tell us about what you're doing and
how it's different?
building the technology that goes
from the sensors in a vehicle to
creating a 3D prospective of what's
around us, the objects, the scene
and then predicting what happens
next and then controlling the
vehicle. So all the software that
goes in the car, the first job we're
doing is building the technology. I
guess how it's different is that
we're assembling talent that exists
in Europe to tackle those problems.
In European cities are very, very
different to American cities so the
technology that your Google or Uber
might develop for the US is simply
not going to work here in Europe and
so we are going technology that
learns about the activities and
objects and behaviours that we see
here in Europe.
So you're building
that tech that will enable a car to
be driverless, not bang into
anything or anyone and get us from A
to B, but you won't licence the tech
to car makers, are you?
right. What we're going to do, we're
going to build the technology and
we're going to build the service to
the consumer so the service model is
we pick people up and drop them off
across our cities and we charge them
a fare for thatting. Doing that.
What this means is that the vehicles
we use will buy those vehicles from
vehicle manufacturers and we will
have them assembled with the sensors
and the technology in them.
you have raised quite a bit of
money. We said there $27 million,
but it is more now. It is more since
we've created those figures for our
graphics. You need to raise a lot
more. How are you convincing people
to invest in FiveAI when there are
other, much bigger, more
high-profile competitors out there
that could attract the funding
instead and the interest instead?
One of the things that is needed, it
is such a hard problem, the problem
we're trying to solve is hard. So US
companies are really struggling to
solve this problem as well. So
nobody has got a safe urban driving
capability in any city in the world
today so we are not very different
to any US company. But what it comes
down to talent. Can we find and
assemble the talent and Europe has a
huge amount of talent really. So by
doing this, in a kind of start-up
model in Europe, we can attract that
How do you attract that
talent when Google, Apple, Facebook
are offering a lot and amazing
We offer similar. All
the top talent is joining tech
companies. It's not actually joining
the auto motive sector. So in the
long-term tech companies win and in
the connection of which tech
companies it is more fun to do it in
a start-up company where we can
offer people real shares and equity
ownership of a company and we found
giving people a share of the company
actually tackling the problem that's
close to home is a superattractive
option for people to come and join.
You are talking about the fact that
getting them out on the roads is the
next big step. Do you see a
potential for them to work alongside
human driven vehicles or do you
think it has to be either all of one
or the other?
No, it has got to be
mixed. It will be a long time before
we can have our streets with fully
autonomous or fully self driving
vehicles so we have to operate in a
mixed environment really where our
vehicles are vournded by cyclists,
feds, cars, vans, trucks, and
everything and we will have to
predict what the other road users
are going to. Otherwise our cars end
up stopping all over the city if we
can't predict what's going to happen
Computers tend to make
decisions based on logic, humans not
necessarily. You are hoping to have
ten cars on the road in London in
That's phase one. At that
stage our company is 200 people and
then after that, we build a service
that we will offer to consumers.
will keep an eye on you, FiveAI.
In a moment we'll take a look
through the Business Pages but first
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Business Live on TV and online,
what you need to know,
when you need to know.
David is back from HSBC. David,
another story that's interesting.
Five Finance Ministers from across
Europe including Philip Hammond of
the UK, putting together a letter
sent to the US Treasury Secretary
sort of basically saying your tax
reform ideas could breach the
international trade rules.
Interesting scenario, isn't it? A
Yeah, it is a
Pan-European approach and they are
saying this is the counterbalance of
the America first approach that they
say the US has taken. Every country
has sovereignty over its tax. They
are saying they are acting unfairly
and the US and the US is changing
international trade. You know, when
the Berlin Wall came down in 1989 we
were going to have the superb open
world and we are heading for the TPP
and all that's changed now.
Trans-Pacific Partnership in Asia.
It is just interesting
as you say how we've got this kind
of Europe-wide approach and yet it
is unlikely that the US, well the
Trump administration will listen or
even change their tax reform ideas
which is being grappled with in
their own political framework?
this is a major piece of legislation
and we are looking for another rate
rise by the Fed and the US economy
should do very well. But it does
raise some question Marx and it does
raise question Marx about open trade
in the world and we have seen that
with Brexit. We have gone our own
way so we can't really complain too
much, but some countries are
preferring that and the US says
everyone is running, we are running
a huge current account deficit and
it is unfair and people are cheating
and we need to change things and it
is belligerent and that's not the
kind of story I want to read. I want
to read about love and happiness,
not new trade wars breaking out.
next time you come in, I expect to
see you in your silly Christmas
That's what we need.
That's it from Business Live today.
It is always good to have your
company. Thanks for being with us.
See you soon.