:00:00. > :00:00.Now for the latest financial news with
:00:00. > :00:19.As the price of oil hits a truly remarkable 11-year low, we
:00:20. > :00:25.look at what's driving the drop and if it still has further to fall?
:00:26. > :00:28.Finally punished - companies are forced to face
:00:29. > :00:31.the music after causing devastating fires in Indonesia.
:00:32. > :00:46.Also in the programme: Has London's super-prime property market finally
:00:47. > :00:53.Oil prices have fallen to levels not seen since 2004,
:00:54. > :01:00.surpassing the lows seen during the global financial crisis in 2008.
:01:01. > :01:02.A worldwide oversupply has dramatically driven
:01:03. > :01:04.down the price of oil, with suppliers failing to reach
:01:05. > :01:10.Just 18 months ago, brent crude was trading at
:01:11. > :01:23.Since then the price has tanked, with it briefly hitting $36.05
:01:24. > :01:28.a barrel in the last 24 hours - before recovering slightly.
:01:29. > :01:31.In the US a gallon of gas now costs less than 2 dollars for the first
:01:32. > :01:35.time since March 2009 and that story is mirrored around the world.
:01:36. > :01:37.For oil producing nations the picture isn't so rosie though.
:01:38. > :01:39.The commodity-related currencies of Russia, Mexico and Norway all
:01:40. > :01:42.fell against the dollar, while Venezuela looks like it could
:01:43. > :01:45.be on the brink of financial ruin unless the price recovers soon.
:01:46. > :01:48.With me now is Neil Passmore, the CEO of Hannam Partners,
:01:49. > :02:01.a financial advisory firm that focuses on natural resources.
:02:02. > :02:12.Thank you for coming in. It has been a theme that the price of oil seems
:02:13. > :02:18.thoughts on the last 24 hours? You thoughts on the last 24 hours? You
:02:19. > :02:22.are right, it has been a tough year and there is no rebate going into
:02:23. > :02:29.the back end of the year. As you say it has been a year of uncoordinated
:02:30. > :02:32.action on the supply side. Huge global supply which has not suffered
:02:33. > :02:40.setbacks that many expected in the market. And the demand side has been
:02:41. > :02:47.weak. A lot of the consumers of the XS marginal barrel of oil 1.5 years
:02:48. > :02:52.ago are struggling domestically using that little bit less than they
:02:53. > :02:56.were -- excess. Into the New Year, those fundamentals don't look like
:02:57. > :03:02.changing. Sadly that is exactly right. If we stick with the demand
:03:03. > :03:08.side, very hard to see in developed economies which for the main part
:03:09. > :03:12.enjoy a sort of lulling gas consumption and the need for powered
:03:13. > :03:17.heating, it is the warm northern hemisphere, we won't see a spike in
:03:18. > :03:26.demand. Similar, the emerging economies, if we take the Goldman
:03:27. > :03:29.Sachs BRICS, China, Rozelle, Russia, those countries are suffering real
:03:30. > :03:36.domestic issues at the moment, so it is hard to see their growing demand
:03:37. > :03:40.-- Brazil. Supply, likewise. I think the face of so much political risk
:03:41. > :03:46.in the world is nonetheless proven a huge surprise to most analysts and
:03:47. > :03:51.commentators, just how resilient supply from places like Nigeria,
:03:52. > :03:58.Iraq Antiua has remained. Talking of next year's supplied, do you think
:03:59. > :04:02.some of those companies who have been heavily supported this year,
:04:03. > :04:06.those who get oil from fracking, which is a
:04:07. > :04:11.will manage to get through again next year, support will be there
:04:12. > :04:15.despite the fact they went make any money? There is a wall of capital
:04:16. > :04:23.weighting in the US to invest it all but a lot of that is quite
:04:24. > :04:27.opportunistic in some senses, vulture-like capital. We will see a
:04:28. > :04:34.hard time for US producers this coming year, in particular the first
:04:35. > :04:41.half of this year when we saw $100 million float into Europe and the UK
:04:42. > :04:46.gas companies. -- flow. 25 billion went into US companies as big equity
:04:47. > :04:53.investors sought to prop them up. I think a lot of them won't find it as
:04:54. > :04:55.easy to be recapitalised. A lot of those with a boring base that will
:04:56. > :05:04.be recalibrated borrowing get. -- borrowing base.
:05:05. > :05:07.Thank you. Let's look at another market that many like to try to
:05:08. > :05:08.predict in terms of where it is going.
:05:09. > :05:10.When it comes to London property prices we're often reporting
:05:11. > :05:13.about how they're hitting yet another record high as demand can't
:05:14. > :05:18.But there is one part of the sector which seems to be bucking the trend.
:05:19. > :05:21.A slowdown seems to be taking place at the very top end
:05:22. > :05:30.Ramzan Karmali has been finding out why.
:05:31. > :05:35.Three years London has been a city that has attracted some of the
:05:36. > :05:38.richest people when it comes to buying property -- for years.
:05:39. > :05:43.Foreign demand for high end central London properties have seen many
:05:44. > :05:46.homes sell for astronomical amounts. This is Victoria Road in Kensington
:05:47. > :05:51.and Chelsea. This month it was the most expensive street in Britain.
:05:52. > :05:56.Around three years ago this house sold for over $13 million. But there
:05:57. > :06:06.are signs of cooling in this luxury end of the market. This year the
:06:07. > :06:09.number of sales in the high-end property has fallen 31% can -- and
:06:10. > :06:13.had to last year. In recent times luxury homes have been bought by
:06:14. > :06:17.wealthy buyers from emerging economies. Chinese and Russians in
:06:18. > :06:22.particular. Both are pulling out of the London market as their economy
:06:23. > :06:24.slows down. This and the strengthening pound seems to be
:06:25. > :06:29.dampening international demand. Should sellers of high end
:06:30. > :06:32.properties be worried? Central London is one of the main capital
:06:33. > :06:36.cities of the world and I don't think that will change overnight.
:06:37. > :06:39.Nothing will suggest it will change. A government has said they want the
:06:40. > :06:43.marker to cool a little. They are focusing on the top end. Do I think
:06:44. > :06:47.we will have some crash in central London's market? No. Investing class
:06:48. > :06:54.wants to buy in London. Rising prices is outpacing the rest of the
:06:55. > :06:58.country and it means for many ordinary Londoners that getting on
:06:59. > :07:03.the housing ladder is an impossible dream. Is a slowdown in the luxury
:07:04. > :07:10.and a bad thing? London attracts a level of wealth from around the
:07:11. > :07:14.world, which contributes positive jobs growth and positive investment
:07:15. > :07:19.activity right across the city. A lack of activity of course is on
:07:20. > :07:24.helpful for Londoners. It might be the house hotspot, but 2016 could
:07:25. > :07:27.see demand for top London properties continue cooling.
:07:28. > :07:36.Indonesia's forest fires and the subsequent haze across parts of
:07:37. > :07:38.south-east asia is estimated to have cost $15.7 billion.
:07:39. > :07:40.The fires are a result of annual slash-and-burn practices
:07:41. > :07:43.by companies clearing land for palm oil and pulp wood plantations.
:07:44. > :07:46.Until now no-one had been held responsible but the Indonesian
:07:47. > :07:48.government has now confirmed that 56 companies will be punished.
:07:49. > :07:58.Sharanjit Leyl joins me now from Singapore with the details.
:07:59. > :08:07.We all remember seeing the effects behind you at the time. That is
:08:08. > :08:13.right, Sally. In fact, just a a few months ago, September -November,
:08:14. > :08:19.have been blanketed in that Hayes. But of course it is much cleaner and
:08:20. > :08:24.now. It has put out much of the fire -- haze. It was horrific, thick haze
:08:25. > :08:31.blanketing this part of the world. It was caused by forest fires in
:08:32. > :08:35.Indonesia, started deliberately. Paper companies were widely blamed.
:08:36. > :08:39.As you say until now no one had been held to account. Essentially the
:08:40. > :08:44.Indonesian government said these companies will have to pay the
:08:45. > :08:46.price. For the first time the government is revoking and freezing
:08:47. > :08:52.the licences of these companies found responsible. We know the
:08:53. > :08:57.pollution caused by the fires had been carrying on for years. It was
:08:58. > :09:01.very bad this year. The government publicly did not
:09:02. > :09:04.firms but what they have done is released the initials and general
:09:05. > :09:10.location of 30 of the 56 companies who are being punished. Only one of
:09:11. > :09:14.the companies was confirmed to be foreign-owned. Another is a supplier
:09:15. > :09:20.to one of the biggest paper and pulp producers, Asia pulp and paper. We
:09:21. > :09:25.know that it has had a devastating impact not just on wildlife and the
:09:26. > :09:29.health impact at even economic impact, the World Bank said recently
:09:30. > :09:36.Indonesia's forest fires and Hayes has cost the country more than twice
:09:37. > :09:39.the amount on reconstruction after the 2004 tsunami -- haze. The bank
:09:40. > :09:46.says the cost amounted to nearly 2% of Indonesia's GDP. And that the
:09:47. > :09:54.regional and global cost would be much higher. OK, thank you.
:09:55. > :09:57.us from Singapore. That is all from me for now. Stay with us for a look
:09:58. > :10:04.at the papers in a minute. See you then.
:10:05. > :10:06.Schools in England will be expected to restrict and monitor pupils'
:10:07. > :10:13.internet access to reduce the risk of radicalisation.