Browse content similar to 22/12/2015. Check below for episodes and series from the same categories and more!
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Now for the latest financial news with | :00:00. | :00:00. | |
As the price of oil hits a truly remarkable 11-year low, we | :00:00. | :00:19. | |
look at what's driving the drop and if it still has further to fall? | :00:20. | :00:25. | |
Finally punished - companies are forced to face | :00:26. | :00:28. | |
the music after causing devastating fires in Indonesia. | :00:29. | :00:31. | |
Also in the programme: Has London's super-prime property market finally | :00:32. | :00:46. | |
Oil prices have fallen to levels not seen since 2004, | :00:47. | :00:53. | |
surpassing the lows seen during the global financial crisis in 2008. | :00:54. | :01:00. | |
A worldwide oversupply has dramatically driven | :01:01. | :01:02. | |
down the price of oil, with suppliers failing to reach | :01:03. | :01:04. | |
Just 18 months ago, brent crude was trading at | :01:05. | :01:10. | |
Since then the price has tanked, with it briefly hitting $36.05 | :01:11. | :01:23. | |
a barrel in the last 24 hours - before recovering slightly. | :01:24. | :01:28. | |
In the US a gallon of gas now costs less than 2 dollars for the first | :01:29. | :01:31. | |
time since March 2009 and that story is mirrored around the world. | :01:32. | :01:35. | |
For oil producing nations the picture isn't so rosie though. | :01:36. | :01:37. | |
The commodity-related currencies of Russia, Mexico and Norway all | :01:38. | :01:39. | |
fell against the dollar, while Venezuela looks like it could | :01:40. | :01:42. | |
be on the brink of financial ruin unless the price recovers soon. | :01:43. | :01:45. | |
With me now is Neil Passmore, the CEO of Hannam Partners, | :01:46. | :01:48. | |
a financial advisory firm that focuses on natural resources. | :01:49. | :02:01. | |
Thank you for coming in. It has been a theme that the price of oil seems | :02:02. | :02:12. | |
thoughts on the last 24 hours? You thoughts on the last 24 hours? You | :02:13. | :02:18. | |
are right, it has been a tough year and there is no rebate going into | :02:19. | :02:22. | |
the back end of the year. As you say it has been a year of uncoordinated | :02:23. | :02:29. | |
action on the supply side. Huge global supply which has not suffered | :02:30. | :02:32. | |
setbacks that many expected in the market. And the demand side has been | :02:33. | :02:40. | |
weak. A lot of the consumers of the XS marginal barrel of oil 1.5 years | :02:41. | :02:47. | |
ago are struggling domestically using that little bit less than they | :02:48. | :02:52. | |
were -- excess. Into the New Year, those fundamentals don't look like | :02:53. | :02:56. | |
changing. Sadly that is exactly right. If we stick with the demand | :02:57. | :03:02. | |
side, very hard to see in developed economies which for the main part | :03:03. | :03:08. | |
enjoy a sort of lulling gas consumption and the need for powered | :03:09. | :03:12. | |
heating, it is the warm northern hemisphere, we won't see a spike in | :03:13. | :03:17. | |
demand. Similar, the emerging economies, if we take the Goldman | :03:18. | :03:26. | |
Sachs BRICS, China, Rozelle, Russia, those countries are suffering real | :03:27. | :03:29. | |
domestic issues at the moment, so it is hard to see their growing demand | :03:30. | :03:36. | |
-- Brazil. Supply, likewise. I think the face of so much political risk | :03:37. | :03:40. | |
in the world is nonetheless proven a huge surprise to most analysts and | :03:41. | :03:46. | |
commentators, just how resilient supply from places like Nigeria, | :03:47. | :03:51. | |
Iraq Antiua has remained. Talking of next year's supplied, do you think | :03:52. | :03:58. | |
some of those companies who have been heavily supported this year, | :03:59. | :04:02. | |
those who get oil from fracking, which is a | :04:03. | :04:06. | |
will manage to get through again next year, support will be there | :04:07. | :04:11. | |
despite the fact they went make any money? There is a wall of capital | :04:12. | :04:15. | |
weighting in the US to invest it all but a lot of that is quite | :04:16. | :04:23. | |
opportunistic in some senses, vulture-like capital. We will see a | :04:24. | :04:27. | |
hard time for US producers this coming year, in particular the first | :04:28. | :04:34. | |
half of this year when we saw $100 million float into Europe and the UK | :04:35. | :04:41. | |
gas companies. -- flow. 25 billion went into US companies as big equity | :04:42. | :04:46. | |
investors sought to prop them up. I think a lot of them won't find it as | :04:47. | :04:53. | |
easy to be recapitalised. A lot of those with a boring base that will | :04:54. | :04:55. | |
be recalibrated borrowing get. -- borrowing base. | :04:56. | :05:04. | |
Thank you. Let's look at another market that many like to try to | :05:05. | :05:07. | |
predict in terms of where it is going. | :05:08. | :05:08. | |
When it comes to London property prices we're often reporting | :05:09. | :05:10. | |
about how they're hitting yet another record high as demand can't | :05:11. | :05:13. | |
But there is one part of the sector which seems to be bucking the trend. | :05:14. | :05:18. | |
A slowdown seems to be taking place at the very top end | :05:19. | :05:21. | |
Ramzan Karmali has been finding out why. | :05:22. | :05:30. | |
Three years London has been a city that has attracted some of the | :05:31. | :05:35. | |
richest people when it comes to buying property -- for years. | :05:36. | :05:38. | |
Foreign demand for high end central London properties have seen many | :05:39. | :05:43. | |
homes sell for astronomical amounts. This is Victoria Road in Kensington | :05:44. | :05:46. | |
and Chelsea. This month it was the most expensive street in Britain. | :05:47. | :05:51. | |
Around three years ago this house sold for over $13 million. But there | :05:52. | :05:56. | |
are signs of cooling in this luxury end of the market. This year the | :05:57. | :06:06. | |
number of sales in the high-end property has fallen 31% can -- and | :06:07. | :06:09. | |
had to last year. In recent times luxury homes have been bought by | :06:10. | :06:13. | |
wealthy buyers from emerging economies. Chinese and Russians in | :06:14. | :06:17. | |
particular. Both are pulling out of the London market as their economy | :06:18. | :06:22. | |
slows down. This and the strengthening pound seems to be | :06:23. | :06:24. | |
dampening international demand. Should sellers of high end | :06:25. | :06:29. | |
properties be worried? Central London is one of the main capital | :06:30. | :06:32. | |
cities of the world and I don't think that will change overnight. | :06:33. | :06:36. | |
Nothing will suggest it will change. A government has said they want the | :06:37. | :06:39. | |
marker to cool a little. They are focusing on the top end. Do I think | :06:40. | :06:43. | |
we will have some crash in central London's market? No. Investing class | :06:44. | :06:47. | |
wants to buy in London. Rising prices is outpacing the rest of the | :06:48. | :06:54. | |
country and it means for many ordinary Londoners that getting on | :06:55. | :06:58. | |
the housing ladder is an impossible dream. Is a slowdown in the luxury | :06:59. | :07:03. | |
and a bad thing? London attracts a level of wealth from around the | :07:04. | :07:10. | |
world, which contributes positive jobs growth and positive investment | :07:11. | :07:14. | |
activity right across the city. A lack of activity of course is on | :07:15. | :07:19. | |
helpful for Londoners. It might be the house hotspot, but 2016 could | :07:20. | :07:24. | |
see demand for top London properties continue cooling. | :07:25. | :07:27. | |
Indonesia's forest fires and the subsequent haze across parts of | :07:28. | :07:36. | |
south-east asia is estimated to have cost $15.7 billion. | :07:37. | :07:38. | |
The fires are a result of annual slash-and-burn practices | :07:39. | :07:40. | |
by companies clearing land for palm oil and pulp wood plantations. | :07:41. | :07:43. | |
Until now no-one had been held responsible but the Indonesian | :07:44. | :07:46. | |
government has now confirmed that 56 companies will be punished. | :07:47. | :07:48. | |
Sharanjit Leyl joins me now from Singapore with the details. | :07:49. | :07:58. | |
We all remember seeing the effects behind you at the time. That is | :07:59. | :08:07. | |
right, Sally. In fact, just a a few months ago, September -November, | :08:08. | :08:13. | |
have been blanketed in that Hayes. But of course it is much cleaner and | :08:14. | :08:19. | |
now. It has put out much of the fire -- haze. It was horrific, thick haze | :08:20. | :08:24. | |
blanketing this part of the world. It was caused by forest fires in | :08:25. | :08:31. | |
Indonesia, started deliberately. Paper companies were widely blamed. | :08:32. | :08:35. | |
As you say until now no one had been held to account. Essentially the | :08:36. | :08:39. | |
Indonesian government said these companies will have to pay the | :08:40. | :08:44. | |
price. For the first time the government is revoking and freezing | :08:45. | :08:46. | |
the licences of these companies found responsible. We know the | :08:47. | :08:52. | |
pollution caused by the fires had been carrying on for years. It was | :08:53. | :08:57. | |
very bad this year. The government publicly did not | :08:58. | :09:01. | |
firms but what they have done is released the initials and general | :09:02. | :09:04. | |
location of 30 of the 56 companies who are being punished. Only one of | :09:05. | :09:10. | |
the companies was confirmed to be foreign-owned. Another is a supplier | :09:11. | :09:14. | |
to one of the biggest paper and pulp producers, Asia pulp and paper. We | :09:15. | :09:20. | |
know that it has had a devastating impact not just on wildlife and the | :09:21. | :09:25. | |
health impact at even economic impact, the World Bank said recently | :09:26. | :09:29. | |
Indonesia's forest fires and Hayes has cost the country more than twice | :09:30. | :09:36. | |
the amount on reconstruction after the 2004 tsunami -- haze. The bank | :09:37. | :09:39. | |
says the cost amounted to nearly 2% of Indonesia's GDP. And that the | :09:40. | :09:46. | |
regional and global cost would be much higher. OK, thank you. | :09:47. | :09:54. | |
us from Singapore. That is all from me for now. Stay with us for a look | :09:55. | :09:57. | |
at the papers in a minute. See you then. | :09:58. | :10:04. | |
Schools in England will be expected to restrict and monitor pupils' | :10:05. | :10:06. | |
internet access to reduce the risk of radicalisation. | :10:07. | :10:13. |