:00:00. > :00:00.Now for the latest financial news with Sally
:00:00. > :00:19.Oil prices soar as the dollar slumps.
:00:20. > :00:25.Have traders finally seen the bottom of the barrel?
:00:26. > :00:26.Plus, communication error: The Bank of
:00:27. > :00:29.England gives its quarterly report later, but is guidance from central
:00:30. > :00:38.Also coming up, the Trans-Pacific Partnership is
:00:39. > :01:19.Some investors are even daring to call the bottom of the market now,
:01:20. > :01:27.That's wiped out all of this week's losses.
:01:28. > :01:32.Several reports are suggesting OPEC and non-OPEC countries could be
:01:33. > :01:34.planning an emergency meeting to try and cut oil production.
:01:35. > :01:49.But a bigger reason is this: the plunge in the value of the US
:01:50. > :01:53.Remember, oil is priced in dollars so a weaker dollar makes it more
:01:54. > :02:23.So the biggest question, has the oil market found the bottom?
:02:24. > :02:36.A big rise, but still uncomfortably low for many in the industry.
:02:37. > :02:47.Certainly, the oil is low and I would expect it to stay there for
:02:48. > :02:51.some time. There is too much supply, there has been for some time, and
:02:52. > :02:55.there are some question marks over demand. Those two things have to
:02:56. > :03:01.match, and I think the big thing we have learned in the past is that it
:03:02. > :03:06.takes time for supply to stabilise and allow the gap between supply and
:03:07. > :03:10.demand to close. So it will take a bit of time, so I think we are back
:03:11. > :03:20.to a period of relatively low prices, much as we had in 1986 -
:03:21. > :03:23.2004, a 17 year period, where the price was about 30-$35 in real
:03:24. > :03:27.terms. Lord Browne,
:03:28. > :03:29.former boss of BP there. We will have the latest results
:03:30. > :03:31.from rival Shell later. Of course it's not just oil
:03:32. > :03:34.companies struggling with low crude prices, oil producing nations
:03:35. > :03:37.from Russia to Algeria to Venezuela Our reporter Abdujalil Abdurasulov
:03:38. > :03:52.sent this from Kazakhstan. Kazakhstani has always been a
:03:53. > :03:57.country with high ambitions. Just recently it was bidding to host the
:03:58. > :04:01.Winter Olympic Games and planned to join the top 30 most developed
:04:02. > :04:07.countries in the world. Luxury lifestyle became a symbol of the
:04:08. > :04:12.booming economy, but that was when oil prices were high. The day of the
:04:13. > :04:15.shopping spree is clearly over. We see that the absolute wealth of the
:04:16. > :04:26.people is decreasing, and it will over the next two years. So we think
:04:27. > :04:31.that the buying in US dollar will decrease, but we don't know to what
:04:32. > :04:38.extent. The extent can be very serious, because 70% of revenues
:04:39. > :04:43.come from oil sales, and when oil prices fall, the entire economy is
:04:44. > :04:47.affected. TRANSLATION: When oil prices are high budget revenues are
:04:48. > :04:51.high. The government starts spending on investment project. As a result
:04:52. > :04:55.the construction sector starts growing, pushing the banking sector
:04:56. > :05:00.up as well. That provides cheap credit to companies and consumers,
:05:01. > :05:08.new jobs are created and people earn more and consumption grows. With
:05:09. > :05:14.increased consumption, increased production also grows. That is how
:05:15. > :05:16.we get a bubble. At the moment, the bubble has exploded. Investment
:05:17. > :05:21.projects have halted, the banking sector is in crisis. Companies are
:05:22. > :05:27.losing profit because people spend less, and as a result the economy is
:05:28. > :05:34.struggling. In 2015, economic growth slowed down to 1.5%. The current
:05:35. > :05:39.account balance dropped to -3%. The currency lost half of its value. The
:05:40. > :05:52.budget deficit increased because of the fall in oil revenues. To fix
:05:53. > :05:55.this situation, the country must fix its currency, and they may find it
:05:56. > :05:58.difficult to finance this project. We are also looking at the Bank
:05:59. > :06:00.of England. It gives its quarterly inflation
:06:01. > :06:03.report later when it's also expected Just a matter of weeks ago
:06:04. > :06:07.its governor Mark Carney was preparing us for higher UK interest
:06:08. > :06:11.rates, now he has signalled that's Dominic Rossi is Chief Investment
:06:12. > :06:15.Officer of Fidelity, one of He says it's not just the Bank
:06:16. > :06:19.of England that has failed in its communication,
:06:20. > :06:33.but all the major central banks. They have consistently understated
:06:34. > :06:36.the disinflationary forces in the world economy. If you look at the
:06:37. > :06:41.ECB, the Bank of England, the Chinese and the Fed, they have all
:06:42. > :06:49.consistently over egged their inflation forecast, and they have
:06:50. > :06:52.been too aggressive in their communication strategy around future
:06:53. > :07:02.interest-rate hikes, and we are constantly seeing them grow back.
:07:03. > :07:06.While it is wise that they do row back, Vieira in the first place
:07:07. > :07:09.causes a certain amount of damage, and I think that is one reason why
:07:10. > :07:11.equity markets have been so unsettled in recent weeks.
:07:12. > :07:13.The vast Trans-Pacific Partnership trade deal, or TPP,
:07:14. > :07:16.has been formally signed in the New Zealand capital Auckland.
:07:17. > :07:19.The US-led deal aims to free up trade and investment between the 12
:07:20. > :07:21.countries across the Pacific Rim, including Singapore, Australia,
:07:22. > :07:25.Together they account for about 40% of the global economy.
:07:26. > :07:27.However President Obama has struggled to get
:07:28. > :07:30.And there have been protests by those who claim big business
:07:31. > :07:58.will profit at the expense of small farmers and workers.
:07:59. > :08:01.Rico Hizon has been following the story for us in Singapore.
:08:02. > :08:14.It is a done deal? They signed it at the ceremony in New Zealand, the
:08:15. > :08:19.second half of it, it says that there are two years to ratify this
:08:20. > :08:23.trade arrangement. And if only ten nations ratified without Japan and
:08:24. > :08:32.the US, unfortunately it will not be enforced. It needs both economic
:08:33. > :08:38.powers to improve it, and then Congress will support it. Earlier I
:08:39. > :08:43.spoke to the New Zealand trade minister, and I asked him why
:08:44. > :08:49.critics say corporations are the winners and ordinary workers are the
:08:50. > :08:52.losers. It is fair to say that there are a number of people who have
:08:53. > :08:58.different views from the governments who have negotiated this agreement.
:08:59. > :09:05.In the case of New Zealand, this is of significant net benefit to us.
:09:06. > :09:07.The central bank did a study on short time ago, and forecast
:09:08. > :09:13.economic benefits for all of the countries. New Zealand have been
:09:14. > :09:19.placed about fourth best off in terms of benefits, and some of them
:09:20. > :09:24.are more significant than the assessment our government has done.
:09:25. > :09:32.There are also ideas that this will mean higher prices for products that
:09:33. > :09:36.are subject to longer copyright periods and more stringent patents.
:09:37. > :09:41.Sumner Redstone has stepped down as executive chairman
:09:42. > :09:44.He will be replaced by president and chief executive Leslie Moonves.
:09:45. > :09:47.There is now speculation that Mr Redstone will also step down as
:09:48. > :09:50.chairman of Viacom, which owns MTV, Nickelodeon and other media assets.
:09:51. > :09:52.Mr Redstone, who is 92, has been facing questions
:09:53. > :09:55.and legal action around his ability to lead the companies.
:09:56. > :09:57.Mr Redstone owns an 80 percent voting stake in CBS
:09:58. > :10:03.The former head of the International Monetary Fund, Dominique
:10:04. > :10:06.Strauss-Kahn is joining the board of a bank owned by Ukrainian
:10:07. > :10:09.Mr Strauss-Kahn resigned as IMF managing director in 2011,
:10:10. > :10:12.after being accused of a rape at a New York hotel, allegations
:10:13. > :10:14.He will join a newly-formed supervisory board
:10:15. > :10:40.Here are the markets, they are still headed higher. The only market
:10:41. > :10:47.headed south as Japan, and that is because the yen is much stronger. A
:10:48. > :10:49.mixed and to the day on Wall Street. People quite concerned about some
:10:50. > :11:01.economic news out of the US.