:00:16. > :00:22.Can OPEC find a way to pump up the price of oil?
:00:23. > :00:40.Villagers count the cost of Brazil's worst environmental disaster.
:00:41. > :00:49.Good morning, Britain, hello, world. Lots going on. How much time have I
:00:50. > :00:53.got, Simon? Nine minutes, 14. That's what you give me and I will give you
:00:54. > :00:57.an exciting snapshot of all that is in the world of business and money.
:00:58. > :01:00.Turbulence runs on the market and we will talk about the Brazil
:01:01. > :01:03.environmental disaster. We start in Vienna, where ministers
:01:04. > :01:07.from the oil cartel OPEC are holding The big question, will they,
:01:08. > :01:11.or rather can they, do anything to reverse the slump
:01:12. > :01:14.in the price of crude? Here's perhaps the key person
:01:15. > :01:16.around that table, certainly the most powerful - Saudi
:01:17. > :01:24.Arabia's oil minister Ali al-Naimi. He was mobbed by journalists
:01:25. > :01:27.yesterday as he arrived at the meeting after a report that Saudi
:01:28. > :01:30.was proposing a cut in production to Let's take a look
:01:31. > :01:38.at the background to all this. Here's what has happened to
:01:39. > :01:41.the price of US crude over The graph that tells the story,
:01:42. > :01:46.it has more than halved in value. Because there is
:01:47. > :01:54.a massive worldwide glut of oil. Demand has gone down,
:01:55. > :01:57.but Saudi and others have still been The theory is they want to hang
:01:58. > :02:06.on to market share, and force those newcomers to the
:02:07. > :02:09.market, US shale producers, they The result - the lowest oil prices
:02:10. > :02:17.in more that six years, Smaller OPEC members like Venezuela
:02:18. > :02:25.are now really struggling They have been putting pressure
:02:26. > :02:29.on Saudi Arabia, the world's biggest oil exporter, and its Gulf
:02:30. > :02:35.allies to cut production. Saudi Arabia may at last be willing
:02:36. > :02:38.to cut production, but only if Iran, Iraq and other non-OPEC members
:02:39. > :02:47.like Russia agree to cut as well. So, is there any possibility
:02:48. > :02:59.of a deal? Listen to this. After the last 12
:03:00. > :03:03.months when we've been seeing the oil price moving sharply lower, but
:03:04. > :03:07.obviously with great stresses in terms of the fiscal positions of a
:03:08. > :03:12.number of those oil producing countries, I would not necessarily
:03:13. > :03:15.expect Saudi Arabian authorities to change tack at this juncture.
:03:16. > :03:19.Certainly, they will want to continue to guarantee their market
:03:20. > :03:22.share, which will suggest that unless there is a co-ordinated move
:03:23. > :03:26.by the other OPEC members, then I think we will see production remain
:03:27. > :03:30.at their mother levels into the start of 2016. -- current levels.
:03:31. > :03:33.Miswin Mahesh is an oil analyst at Barclays.
:03:34. > :03:42.We appreciate you joining us at this time. Can I start with that? We keep
:03:43. > :03:45.hearing that Saudi and the others go, no one wants to cut production
:03:46. > :03:54.because they will lose market share. Explain that to me. It is a
:03:55. > :04:00.small pie given oil demand is not growing as wrong we as it was last
:04:01. > :04:04.year. They are all fighting for that small pie. Saudi Arabia know that if
:04:05. > :04:08.they cut they will win on price because prices will go up but they
:04:09. > :04:14.will lose market share. Someone will come in and take it. Russia or the
:04:15. > :04:19.US producers might fill in the market share. Saudis are the lowest
:04:20. > :04:29.cost producers, so they are saying, why should we cut? OK, there you go.
:04:30. > :04:34.With the low price of oil, is it so much a nobody is cutting story, or
:04:35. > :04:41.is it a US fracking success story? It is the latter, I would say, with
:04:42. > :04:45.the US growing 1 billion barrels per day, which is a significant trunk,
:04:46. > :04:51.and more than demand -- 1 million barrels. No one else is willing to
:04:52. > :04:56.reduce. It is a story of how successful US jail has been. I am
:04:57. > :05:02.also wondering, we have seen not only oil but commodities across the
:05:03. > :05:10.board drop off the price Cliff -- shale. Copper, aluminium, iron ore,
:05:11. > :05:15.it is all downhill. Art that prices of commodities like the weather? It
:05:16. > :05:19.is cyclical -- cliff. We are at the bottom of the cycle. Very much.
:05:20. > :05:22.Producers of these commodities have brought onto many products, more
:05:23. > :05:28.than they anticipated demand to grow. And we've seen a slowdown in
:05:29. > :05:31.China which is a big consumer of all of these products, which is part of
:05:32. > :05:37.the reason for the mismatch in demand and supply. There is a huge
:05:38. > :05:40.gap and that is affecting prices. You have told me you are excited
:05:41. > :05:47.about this meeting today. Will a deal be done? Will they agree to
:05:48. > :05:51.cut? I don't think so. Some members like Venezuela want to see a cut.
:05:52. > :05:55.This is how they go into the meeting. All of them are sitting
:05:56. > :05:58.around the table. Venezuela will say that we need to cut and they will
:05:59. > :06:03.point at Saudi Arabia. They themselves are not ready to cut.
:06:04. > :06:07.That is difficult for Saudi Arabia to be in that position because they
:06:08. > :06:13.can not be the only one shouldering the responsibility. And Saudi Arabia
:06:14. > :06:18.wants Iran to cut. Iran are going, we have been out of the market! It
:06:19. > :06:26.is unfair for some members, Iran and Iraq, to be asked to cut. Saudi
:06:27. > :06:30.Arabia has set the bar high by saying they are not ruling out a cut
:06:31. > :06:34.but the bar is high because they need conditions to be met, and they
:06:35. > :06:39.want Russia and Mexico to cut, which is difficult to get. None of them
:06:40. > :06:45.want to cut because prices are low. I have to wrap it up.
:06:46. > :06:48.Now to what Brazil's government is calling the country's worst
:06:49. > :06:55.Saturday will mark a month since a dam operated
:06:56. > :06:58.by mining firm Samarco, co-owned by BHP Billiton and Vale, burst near
:06:59. > :07:02.13 people died and eight are still missing in the
:07:03. > :07:04.huge mudslide that engulfed the town and flowed into the river Doce.
:07:05. > :07:06.But authorities are demanding reparations
:07:07. > :07:08.from the mining companies that could add up to $5 billion.
:07:09. > :07:12.The BBC's Daniel Gallas has been to a beach community 500 kilometres
:07:13. > :07:14.downriver to see what effect this disaster is having
:07:15. > :07:42.Searching for fish in a sea of mud. Sporting venues to be easy before
:07:43. > :07:46.the mining accident that turned the waters of the speech red orange. Now
:07:47. > :07:50.only research is equipped with radars are allowed to look for them.
:07:51. > :07:53.Fishing has been banned while tests are carried out to determine whether
:07:54. > :07:57.the animals here are fit for consumption. The red dots on the
:07:58. > :08:03.screen are fish that are still alive under the mud. The president of the
:08:04. > :08:08.local fishing association is devastated. He had big plans. His
:08:09. > :08:12.union was building a new shop to sell high end equipment for its
:08:13. > :08:17.members. Now he is thinking of turning it into a house or a shop.
:08:18. > :08:25.He fears it will be years before his fishing grounds returned to normal.
:08:26. > :08:29.TRANSLATION: The river Doce is over for all fishermen. I have 68
:08:30. > :08:33.fishermen I am responsible for. They have families. Children in school.
:08:34. > :08:39.Bills to pay. How will they find money. This is where the river Doce
:08:40. > :08:43.meets the ocean. Nature and surfing attracts thousands of tourists every
:08:44. > :08:47.year but not any more since bathing was banned and no one wants to come.
:08:48. > :08:54.This surfer moved here two years ago and spent all of his savings
:08:55. > :08:56.building this hostel. Summer and holidays are where the tourism
:08:57. > :09:11.industry gets virtually all of its revenue. TRANSLATION: This summer
:09:12. > :09:15.was the -- supposed to be the best for the business. All of the summer
:09:16. > :09:19.bookings have been cancelled. One month on from the disaster and there
:09:20. > :09:23.still is not an accurate estimate of how much it will cost to recover the
:09:24. > :09:29.river Doce. Authorities want the mining giants BHP to create A5
:09:30. > :09:35.billion dollar fund to help the environment and local economies
:09:36. > :09:39.affected -- eight $5 billion fund. They are in talks to compensate
:09:40. > :09:47.those affected in the industries but residents don't want just money,
:09:48. > :09:50.they want answers too. TRANSLATION: We've no idea how long this
:09:51. > :09:54.situation will last. No one has been able to tell us what the problem is.
:09:55. > :09:59.We are left like this. It may take months or years. Everything this
:10:00. > :10:04.small beach community had it owed to the river Doce and to the sea and
:10:05. > :10:08.now both are contaminated. No one knows for sure just how harmful this
:10:09. > :10:12.mud is which came from the mines operated like BHP and Samarco. But
:10:13. > :10:16.what is clear for everyone is that fully recovering the river, the
:10:17. > :10:17.environment and the local economy is something that will take a long
:10:18. > :10:26.time. Let's have a quick flash of the
:10:27. > :10:31.markets. We can see it it of a slump. Keep across me if you can, so
:10:32. > :10:33.to speak... LAUGHS. James, stop it!
:10:34. > :10:36.Don't forget you can get in touch with me and some of the
:10:37. > :10:46.I will be back soon to look at the papers. Goodbye.
:10:47. > :10:50.The Forth Road Bridge has been closed indefinitely after defects