:00:22. > :00:27.is. Now it is time for World The black hole. How much more money
:00:27. > :00:32.will BP need to set aside to cover claims over the Gulf of Mexico oil
:00:32. > :00:37.spill disaster. It releases results today.
:00:37. > :00:47.Imagine living in a flak like this. It is the reality for many people in
:00:47. > :00:49.
:00:49. > :00:55.Hong Kong. Welcome to World Business Report.
:00:55. > :01:01.Also in the programme, US regulators accused JP Morgan of manipulating
:01:01. > :01:04.the energy markets in California. We have the details for you. But first,
:01:04. > :01:14.many of the world's biggest oil companies are reporting their
:01:14. > :01:16.
:01:16. > :01:24.figures. BP stands out for the length of the shadow cast by its
:01:24. > :01:27.disastrous spell in the Gulf of Mexico, back in 2010. The company is
:01:27. > :01:33.expected to set aside yet more money to pay for the damage caused and
:01:34. > :01:39.cover claims for a compensation. It has earmarked $8.2 billion to pay
:01:39. > :01:45.for the damage from this event. It warned its 1st-quarter results that
:01:45. > :01:49.the figure could significantly too little. It has been ordered to pay
:01:49. > :01:55.hundreds of millions of dollars, soon likely billions, for a
:01:55. > :02:04.fictitious and inflated losses. It has gone to the US courts in its
:02:04. > :02:11.legal battles. It is far from over. It is likely to be given until at
:02:11. > :02:16.least 2014. Time to get some analysis from an energy analyst at
:02:16. > :02:24.Schneider Electric. What are you expecting BP to tell us today? In
:02:24. > :02:30.terms of profits, the statement is likely to be a little down from last
:02:30. > :02:34.time. About $3.5 billion. That is down from last year. People will be
:02:34. > :02:41.looking very much to an update on some of the things you have
:02:41. > :02:44.mentioned. It could start hitting earnings. Looking at the
:02:44. > :02:49.compensation claims, when the event happened three years ago, we all
:02:49. > :02:57.knew that it would be hard to measure the financial fallout of
:02:57. > :03:07.this. Where are we at? In total terms, they have probably allocate
:03:07. > :03:12.it and spent most of $40 billion. That is in terms of the total cost.
:03:12. > :03:17.In particular concern at the moment, they set aside $20 billion
:03:17. > :03:25.in a trust fund to compensate those that in all aspects and also the
:03:25. > :03:31.cleanup cost. And also we have the compensation claims that hit the
:03:31. > :03:39.headlines recently. That money is almost all used up. Many of the
:03:39. > :03:44.compensation claims are supposed to be fraudulent. That comes back to
:03:44. > :03:53.the deal that they struck with regulators. Many believe it is not
:03:53. > :04:01.exactly in their favour. How do you think that will play out? BP's
:04:01. > :04:11.attempts to fight those allegations have not succeeded. Indeed. It is a
:04:11. > :04:16.difficult, but probably realistic case. I have seen quotes of it being
:04:16. > :04:26.referred to as a feeding frenzy in some places. There is a lot for BP
:04:26. > :04:29.
:04:29. > :04:32.to fight against. What is the long-term outlook for BP? There have
:04:32. > :04:39.been some scary stories about the ultimate damage this could cause the
:04:39. > :04:49.company. It is too early to say. There will not be a full report
:04:49. > :04:50.
:04:50. > :05:00.until 2014. People might say that they are negligent or a grossly
:05:00. > :05:01.
:05:01. > :05:05.negligent. Tmax four your time. A long time before BP can draw a line
:05:05. > :05:09.under that event. Having a look at some other business
:05:09. > :05:15.stories, JP Morgan is expected to settle a case today where it is
:05:15. > :05:19.accused of manipulating energy markets. The apparently used
:05:19. > :05:23.improper bidding tactics in California and the midwest to boost
:05:23. > :05:33.profits. The regulatory commission says it has found its manipulative
:05:33. > :05:34.
:05:34. > :05:42.bidding strategies in 2010 and 2011. It echoes a similar case with
:05:42. > :05:45.Barclays. We are talking about Barclays, the UK bank will be
:05:45. > :05:52.reporting its results today. Analysts expected to reveal higher
:05:52. > :05:57.than forecast provisions for mis-selling of financial products.
:05:57. > :06:07.In the meantime, today's financial Times is reporting the bank is also
:06:07. > :06:07.
:06:07. > :06:11.poised to launch a �5 billion rights issue.
:06:11. > :06:19.We will discuss that further when we look at today's newspaper stories.
:06:19. > :06:27.Now we can focus on Japan. It has had some dire economic news. We will
:06:27. > :06:36.now go to Singapore. This was not good at all. That is right, Sally.
:06:36. > :06:45.The latest numbers show Prime Minister Shinzo Abe is fighting an
:06:45. > :06:50.uphill battle in fighting inflation. Household spending, they were
:06:50. > :06:59.expecting a positive number. But it fell by 0.4%. Industrial output fell
:06:59. > :07:03.by more than 3%. It is the first fall in five months. The production
:07:03. > :07:11.of cars and electronic parts slowed. This is highlighting a mixed picture
:07:11. > :07:20.for demand overseas. But on the flipside, it is having an impact on
:07:20. > :07:26.factory data. It expanded by 1.4%. That is a positive number. One
:07:26. > :07:31.producer surveyed was also optimistic. There is also data to
:07:31. > :07:40.show the unemployment rate fell to 3.9% in June. His lowest point in
:07:40. > :07:49.more than four years. There is a bit of some light at the end of the
:07:49. > :07:56.tunnel. But there is more work to be done to revive the Japanese economy.
:07:56. > :08:02.Imagine living in a room just begin to fit a bed and a table. Imagine
:08:02. > :08:06.cramming into the same space with your family. According to a recent
:08:06. > :08:11.commission, that is how more than 65,000 point families live in Hong
:08:11. > :08:16.Kong. It is some of the most expensive property in the world. It
:08:16. > :08:19.is more than double official estimates. In our latest in a series
:08:19. > :08:25.looking at housing around the world, we visited some of the
:08:25. > :08:29.families. In Hong Kong it is easy to see where
:08:29. > :08:38.the ritual. But between the skyscrapers, some residents live
:08:38. > :08:44.appalling conditions. Look at this unit, it has been divided into two.
:08:44. > :08:48.This one has been divided into four. Increasingly, units are being
:08:48. > :08:55.divided into smaller and smaller units. So they can be rented out
:08:55. > :09:01.cheaper to families. For $240 per month, you can rent an apartment in
:09:01. > :09:08.Hong Kong. But elbow room costs extra. Inside each square metres of
:09:08. > :09:13.face, this man needs to leave his food next to the rubbish. -- space.
:09:13. > :09:20.He is among the 170,000 in Hong Kong crammed into small spaces.
:09:20. > :09:26.TRANSLATION: I can only blame myself for being poor. I am fortunate to
:09:26. > :09:30.have a place of my own. government says these units are
:09:30. > :09:38.health and safety hazards. Four families share a power supply meant
:09:38. > :09:42.for one. The windows do not open. If a fire breaks out, there is not an
:09:42. > :09:47.ultimate escape. The government says it will build more affordable
:09:47. > :09:53.homes. 92,000 of review next four years. But it is not enough to cover
:09:53. > :09:59.all of the people waiting for public housing. In the meantime, families
:09:59. > :10:03.like this one have to turn six square metres of space into a home.
:10:04. > :10:09.Mother and son sleep side by side. There is no room for this growing
:10:09. > :10:15.boy to stretch his legs. The worst thing about living here are the
:10:15. > :10:20.bugs, he tells me. Cockroaches would crawl into my shoes. One time I did
:10:20. > :10:30.not check before a putting them on. If it were covered with crushed
:10:30. > :10:31.
:10:31. > :10:36.insects. -- my feet. These stories are warning for Hong Kong. People
:10:36. > :10:43.are struggling just to find space to sleep.
:10:43. > :10:48.Quite shocking, when you look at that reality for many people in Hong