14/04/2016

Download Subtitles

Transcript

:00:00. > :00:00.Now for the latest financial news with

:00:00. > :00:17.A slumping share price, thousands of jobs cut

:00:18. > :00:29.So, does the boss of BP really deserve a 20% pay rise?

:00:30. > :00:31.Trouble in the pipeline at the oil giant's shareholder meeting.

:00:32. > :00:33.Plus, the nuclear option - only smaller.

:00:34. > :00:35.Are mini-reactors part of our low carbon future,

:00:36. > :00:49.Also in the programme: Emergency measures in Singapore to weaken

:00:50. > :00:55.Rico is all over this for us and will join us in a moment.

:00:56. > :01:01.We start here in London where in a few hours' time oil giant BP faces

:01:02. > :01:14.That's because of growing anger over how much the boss is being paid.

:01:15. > :01:17.Let's take a look at the numbers, which for many people simply don't

:01:18. > :01:21.Last year, BP reported the company's biggest ever loss,

:01:22. > :01:24.of $6.5 billion, as it struggled with the plunge in oil prices.

:01:25. > :01:30.That's forced it to make massive job cuts, over 7,000 workers,

:01:31. > :01:37.or 9% of its workforce, will go by the end of next year.

:01:38. > :01:42.So, here's what has really got shareholders hot under the collar.

:01:43. > :01:45.Last year, BP chief executive Bob Dudley actually saw his pay jump

:01:46. > :01:55.BP's shareholders haven't had nearly such a good year.

:01:56. > :01:58.If you take a look at BP's shares over the past 12 months,

:01:59. > :02:02.They have lost almost a quarter of their value, over 23%,

:02:03. > :02:06.And if BP needed any more awkward numbers, how about this one?

:02:07. > :02:08.The boss of arch rival Shell, Ben van Beurden,

:02:09. > :02:12.saw a huge cut in his pay package last year, down 77% to just over

:02:13. > :02:18.$5.5 million, a little over a quarter of what Mr Dudley made.

:02:19. > :02:20.Catherine Howarth is the chief executive of Share Action,

:02:21. > :02:25.which advises pension funds on ethical investment.

:02:26. > :02:33.It is good to have you in this morning. So, how will this meeting

:02:34. > :02:39.go? It will be a rough ride for the board of BP. Once per year they have

:02:40. > :02:43.to face the music. It is a fantastic opportunity for people with shares

:02:44. > :02:48.in BP to grill the board and that is what will happen. Many investors

:02:49. > :02:56.have said they are against the remuneration package. Absolutely.

:02:57. > :03:01.Aberdeen Asset Management and Royal London are voting against the

:03:02. > :03:07.report. Other shareholders have said the same. We will see very

:03:08. > :03:13.significant numbers in terms of the revolt on pay. It is not the only

:03:14. > :03:22.issue. There are a wide range of things to be raised at the meeting.

:03:23. > :03:28.The whole question of sentiment and morale is crucial for the success.

:03:29. > :03:34.7000 people lost its job. It is tone deaf to put in place a 20% pay rise.

:03:35. > :03:38.There are other issues. An upset along the southern coastline of

:03:39. > :03:42.Australia around deep sea drilling plans in the great Australian bight.

:03:43. > :03:45.After their record of deep sea drilling in the Gulf of Mexico,

:03:46. > :03:52.people are concerned the company doesn't have... -- Great Australian

:03:53. > :03:56.Bite. People have flown across the world from Australia to make the

:03:57. > :04:02.board understand just how vigorously this is opposed in Australia. The

:04:03. > :04:08.company so far has not produced convincing oil spill response

:04:09. > :04:15.plans. It is an area of special marine interest with many endangered

:04:16. > :04:19.whales and so on. It doesn't make sense in the context of climate

:04:20. > :04:22.debate either. What of the argument that Bob Dudley came in at the

:04:23. > :04:27.height of the Gulf of Mexico disaster and has got them through

:04:28. > :04:35.this difficult time. The share price is down, oil prices have sunk, job

:04:36. > :04:40.losses, all of the majors, they are laying them off and you need a

:04:41. > :04:45.leader at this time. Perhaps he is that. He has overseen BT through

:04:46. > :04:50.very challenging periods. There is no question about it. He is very

:04:51. > :04:54.well-paid already. People are struggling what justifies the pay

:04:55. > :04:59.rise. Does it suggest a board out of touch with and stakeholders? I think

:05:00. > :05:05.you will see that in spades today at the AGM. Thank you so much for

:05:06. > :05:07.coming in and we will be a cross that AGM when it happens and we will

:05:08. > :05:12.let you know how it is. Staying with the energy business,

:05:13. > :05:14.and the highly controversial Its backers believe nuclear has

:05:15. > :05:17.a role to play alongside renewable energy in helping to meet future

:05:18. > :05:20.energy demand But nuclear power stations are

:05:21. > :05:22.hugely expensive and complex to build and investment

:05:23. > :05:25.is difficult to secure. Today companies from

:05:26. > :05:27.around the world meet in Atlanta Georgia to discuss what they

:05:28. > :05:42.see is the solution. Think nuclear, think big. These

:05:43. > :05:46.giants provide energy for millions but their size is a problem.

:05:47. > :05:51.Building replacements is often delayed and cost is overrun. Money

:05:52. > :06:00.men are nervous putting up cash for new nukes. Is the solution beneath

:06:01. > :06:07.the waves? The successful Pilares test missal from the USS Washington.

:06:08. > :06:12.Submarines have been powered by small reactors since the 1950s. Can

:06:13. > :06:19.small reactors provide energy on land? Yes, they can. This American

:06:20. > :06:24.firm is part funded by the US government, expecting to have the

:06:25. > :06:30.first mini nuclear reactor operating in the USA in 2025. It will be small

:06:31. > :06:36.enough to fit on the back of a lorry and most importantly it will be

:06:37. > :06:40.small enough to finance. Other firms in major countries are racing to

:06:41. > :06:46.build small reactors also and experts are excited. You can build

:06:47. > :06:51.them like aircraft engines, one after another, in a factory with

:06:52. > :06:56.quality controls, so you increase quality and reduce cost overall.

:06:57. > :07:02.Memories linger of nuclear promises in the past. They said it would

:07:03. > :07:07.cheap to meet it. Now, cost is undercut by solar and wind power and

:07:08. > :07:12.splitting atoms looks expensive as a way to get electricity. There is no

:07:13. > :07:20.evidence it will be cheaper. The cost of renewables are coming down

:07:21. > :07:23.and the cost of nuclear is going up. Small reactors are not without

:07:24. > :07:30.problems. In the UK we still have no way of safely storing long-term

:07:31. > :07:34.nuclear waste. And what's more small reactors won't be ready in time to

:07:35. > :07:41.solve the short-term climate change targets. Experts say that by 2030 or

:07:42. > :07:42.2040 mini nukes could play a significant role in supplying energy

:07:43. > :07:50.needs. Lots more on that online. Let's go to Asia now where Singapore

:07:51. > :07:53.has moved to boost Rico Hizon is there and is

:07:54. > :08:06.following the story. Challenging times for the

:08:07. > :08:10.Singaporean economy over the last year and now that the GDP figures

:08:11. > :08:17.are out, results show the economy was flat in the first quarter.

:08:18. > :08:21.Singapore's GDP rising 1.8% in the first quarter, the same growth

:08:22. > :08:27.compared to the previous quarter. The headache for the government is

:08:28. > :08:31.manufacturing. It contracted. Offsetting that you have

:08:32. > :08:43.construction and services expanding. Due to this data, the Singaporean

:08:44. > :08:48.central bank surprised markets, easing the currency policy, also

:08:49. > :08:52.known as the monetary authority. They used exchange rates to guide

:08:53. > :08:57.policy instead of interest rates like most global counterparts. So,

:08:58. > :09:04.the MAS forecast growth to be weaker than estimated and inflation will

:09:05. > :09:14.likely be at a slower pace. The dollar is around 1.36. Thank you so

:09:15. > :09:16.much. See you soon. In other news: A US appeals court

:09:17. > :09:21.has cleared Argentina to begin making payments on $9 billion

:09:22. > :09:24.of debt, rejecting claims The decision paves the way

:09:25. > :09:27.for the country to re-enter bond markets after more than a decade,

:09:28. > :09:30.following its default in 2001. Settling the country's debt default

:09:31. > :09:32.has been one of the main campaign promises made by

:09:33. > :09:35.President Mauricio Macri, who came 40,000 workers at US telecoms giant

:09:36. > :09:39.Verizon have gone on strike after contract negotiations failed

:09:40. > :09:43.to produce a settlement. The unions organising

:09:44. > :09:45.the action represent customer They have been without

:09:46. > :09:49.a contract since August and talks have stalled over Verizon's plan to

:09:50. > :09:52.cut healthcare and pension benefits Presidential candidate

:09:53. > :10:15.Bernie Sanders spoke at a protest in It is all going up for financial

:10:16. > :10:19.markets around the world. Japan, the Nikkei, 3% moments ago. Hong Kong is

:10:20. > :10:24.wrong. The yen is weakening. Japanese banks are doing well today

:10:25. > :10:29.off the back of better than expected news from JP Morgan, whose earnings

:10:30. > :10:32.were out yesterday and the Wall Street bank posted better than

:10:33. > :10:38.expected first-quarter profits, boosting the Dow. I just want to

:10:39. > :10:42.show you the main markets in the US because they had a really good

:10:43. > :10:57.session. You are up to date. I will see you in a moment when we look

:10:58. > :10:59.through the papers. Sally will be back for a look at the papers.