20/01/2016 World Business Report


20/01/2016

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"Mastering the fourth industrial revolution".

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That's this years theme for the World Economic Forum in Davos.

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We're there grilling the world's rich and powerful to find out how

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And the oil market could be drowning in oversupply.

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That's the warning from the International Energy Agency

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sending the price of the black stuff below $28 a barrel.

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Also in the programme share markets across

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At one point the hang seng was down nearly 4%.

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Rico will have the latest from the region.

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Its that time of year when business leaders, politicians,

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hollywood stars and the worlds top NGOs gather in Davos, Switzerland

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Top of the agenda will be the big issues: financial

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instability, China, the price of oil, monetary policy, terror

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But delegates also be asked to consider "The

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Fourth Industrial Revolution" and the impact artificial intelligence

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Tanya Beckett is in Davos for us and reports on those companies who are

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Robots have arrived in Davos. This is from South Korea, embodying the

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title of the forum, before the Industrial Revolution. This robot is

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being told what to do but there are many big thinkers who see in age

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already dawning in which machines will make their own decisions. Some

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strange things are beginning to happen. Think about it. Cars are

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beginning to drive themselves. You walk down the street and see

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somebody talking to their phone, there talking to the machine, not

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talking to another human and that is something that never happened in

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human history before, our ability to talk to machines that way. Machines

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are beginning to recognise objects and images, they are diagnosing

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diseases like cancer. That is in the quiet room our bubble that is

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transforming the world. So what will this mean for how things will get

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done in the future? And how will companies change how they manage

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their biggest asset, their workforce? I'm excited about the

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future but at the same time I have never been more scared about the

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future. Cannibalizing your existing business to be able to change fast

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enough and being able to skilled people are having a workforce ready

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which can take advantage of these opportunities. I think that is where

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my challenge is. The task of the next few days in Davos is to hammer

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out what skills workers will need to stand the test of time. Bearing in

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mind that computers can learn some things much faster than humans. We

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are not just talking about robots are placing people in the factory

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line, we're talking about the incursion of artificial

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intelligence, for the first time in a way, in all those professional

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skills and qualifications. In the professions, so-called, whether it

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is health, legal, accountancy and finance... So don't be fooled into

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thinking that something needs to look like a robot in order to take

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your job. Robots do appear to be increasingly able to handle tasks

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which involve collecting information and then responding to it. But there

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are some things that still requires that human touch, like how you like

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to be served your cocktail, for example. Thank you.

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Who better to talk to right now, than a former Chief Economist

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at the International Monetary Fund, Ken Rogoff who is now Professor

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Let's start with your response to that big question being posed that

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Davos this year. In the issues regarding getting to grips with the

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future. Your thoughts on that? It the big question for mankind. There

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is debate among economists as to whether the inventions are less

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useful that we're making today than they were in the and 1900s. -- in

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the 1800s-1900s. How fast it comes might be an issue. -- is a big

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discussion this year. -- that is a big discussion this year. As we

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speak markets in Asia are tumbling again, Hong Kong down nearly 2%, the

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oil price thinking. It has been an appalling start to the year for

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financial markets and commodity markets. I understand you are quite

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optimistic, however? I am optimistic about the United States and Europe.

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Having oil prices fall is good for Europe and counterbalances the

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slowdown in Asia. The US is more mixed. It is good for Japan. Will

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prices falling puts a lot of stress on emerging markets. Commodity

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prices falling means Russia and Brazil are in recession. The big

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question is China. Clearly they have slowed down and some of it is

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deliberate, some of it may be not so much. I am concerned about China

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that the slowdown might prove much faster than they think, but

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information is scarce. There is a lot more action in the markets then

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the economic data reflects. Many questions about China, we had the

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growth figures out yesterday but there are many unknowns. What are

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their debt levels like? Is hanging over everybody in the global economy

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and as you say, the oil prices are good for Europe, the US and Japan

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but last year it did not boost global growth is much as we hoped.

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It didn't. Seriously, because now emerging markets are much bigger

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consumers of oil -- curiously. In the Middle East, consumption is

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subsidized heavily and as prices fell, they just took it in lower

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subsidies. As the price drops to the floor, it will pastor consumption

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and it will have more of a positive effect. India has done very well

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with oil prices falling. Reflate, -- briefly, what do you make of the

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criticism that Davos in that it is a network event but nothing really

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changes afterwards? Well, I think the networking part probably has

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longer-term issues, political leaders meet and businesspeople do,

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but it is not a decision-making forum in the way that the G20 is.

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The saying about Davos is, whoever has been here one year knows it is a

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disaster, and the next they will be a hero. We're waiting to see who

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that will be. Thank you. More on Davos on our website.

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Share markets across Asia are seeing dramatic falls again today.

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The oil price is sliding too going below $28 a barrel

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as the International Energy Agency warns the oil market could drown

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Rico Hizon is in Singapore with more on this.

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No respite. That's right. It has been a dreadful year for oil

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prices. US crude has tumbled below $28 per barrel in Asia which is a 12

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year low. The last time it close below this level was in September of

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2000 tree. -- 2003. Oil prices are set to fall further this year as

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supply exceeds demand with Iran's returned to the market offsetting

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production cuts from other countries. Over the past year, the

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oil market has been awash with supplies because of high levels of

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production. As a result, prices have crashed by 75% since mid-2014, hit

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by several factors. A glut in the supplied, weak demand and a slowing

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global economy and a strong dollar. This has caused chaos across global

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markets. Thank you. A really strong yen doesn't help Japan at all

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either. Let's look ahead to how things are going to pan out later

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on. We will have a look at the newspaper stories later on but we

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will have more on Davos on our

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