18/04/2016

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:00:19. > :00:22.Oil prices fall sharply after major producers fail to agree

:00:23. > :00:27.on a plan to limit global production to drive up revenues.

:00:28. > :00:32.And another blow for Brazil's President, Dilma Rousseff.

:00:33. > :00:35.Its lower house of Congress has voted to start impeachment

:00:36. > :00:39.proceedings over charges of manipulating government accounts.

:00:40. > :00:50.Also in the programme: India's Finance Minister tells us economic

:00:51. > :00:58.The world's leading oil producers have failed to come up with

:00:59. > :01:00.an agreement to cap production in a bid to stabilise prices.

:01:01. > :01:06.They met in Doha this weekend to try to thrash out a deal.

:01:07. > :01:09.But in the end they had to concede they "need more time".

:01:10. > :01:13.After that statement, crude prices swiftly fell more than 5%.

:01:14. > :01:15.To give you some perspective on what's at stake,

:01:16. > :01:19.Around 1.5 million barrels of crude are produced every day

:01:20. > :01:23.in excess of demand, according to the International Energy Agency.

:01:24. > :01:26.The IEA believes that oversupply will fall to 200,000 barrels

:01:27. > :01:29.per day in the second half of this year, but the agency says freezing

:01:30. > :01:37.at current levels would have limited impact as both Saudi Arabia and

:01:38. > :01:43.Russia are already pumping at near record rates. And Iran says it will

:01:44. > :01:46.not agree to a freeze in production now as it wants to hit pre-sanction

:01:47. > :01:55.Oil kingpin Saudi Arabia had counted on rock-bottom oil ending America's

:01:56. > :01:58.But America's frackers, although they've been hard hit, are seeing

:01:59. > :02:14.David Hunter is an energy analyst with Schneider Electric.

:02:15. > :02:23.Good morning, David. I must confess I wasn't surprised to hear there was

:02:24. > :02:27.no agreement in Doha and yet markets were really anticipating a good

:02:28. > :02:32.result prior to this weekend, were they not? That is right. Since their

:02:33. > :02:37.potential freeze was announced in February there has been more

:02:38. > :02:41.optimism in the markets, it has risen from the trough something like

:02:42. > :02:52.two thirds up to the mid- $40 per barrel. No agreement has spooked

:02:53. > :02:56.markets. Where do we go from here? Clearly, OPEC producers and some

:02:57. > :03:00.non- OPEC producers, who have all met, cannot agree, which was kind of

:03:01. > :03:07.what happened last time, when it was quite chaotic, wasn't it? That is

:03:08. > :03:12.right. I think what is driving this, what sits behind the discussions is

:03:13. > :03:18.the geopolitical differences between Saudi Arabia and Iran and also Saudi

:03:19. > :03:26.Arabia's memory of what happened in the past with weak oil prices, in

:03:27. > :03:29.that it risks losing market share by cutting production. That affects a

:03:30. > :03:32.number of countries, they are desperate not to lose market share

:03:33. > :03:40.because it is difficult to get it back. Iran, obviously, as pointed

:03:41. > :03:46.out, is trying to increase production post sanctions, and that

:03:47. > :03:50.is really behind it, in that Iran feels it has the right to do that,

:03:51. > :03:55.meanwhile Saudi Arabia does not want to lose market share. Talk us

:03:56. > :03:59.through the consequences. Oil prices will remain low for the rest of this

:04:00. > :04:07.year. Who will be the biggest losers? We have mentioned fracking

:04:08. > :04:13.in America. Some companies are in dire straits. Saudi Arabia it self,

:04:14. > :04:18.although it has deep pockets and large reserves, is struggling. Any

:04:19. > :04:23.economy that depends largely on oil is struggling at the lower prices we

:04:24. > :04:30.have seen -- itself. Some African countries, also in Venezuela, Russia

:04:31. > :04:37.is travelling as well. These major producers are finding it very

:04:38. > :04:41.difficult and they would all like the oil price to stabilise, to

:04:42. > :04:45.recover, for the market to come back into balance -- struggling. As you

:04:46. > :04:52.mentioned, in the US, the unconventional oil production has

:04:53. > :04:56.been relatively higher cost, and as the price per barrel has fallen,

:04:57. > :05:02.that has resulted in lower production, falling production in

:05:03. > :05:05.the states, but these producers have been more resilient than Saudi

:05:06. > :05:11.Arabia anticipated. Thank you for your time. That is a story we will

:05:12. > :05:12.talk about when we look at the papers today as well.

:05:13. > :05:15.Since India has overtaken China as the world's fastest growing

:05:16. > :05:18.economy, there's been a strong focus on the government's reform drive

:05:19. > :05:21.The International Monetary Fund has just confirmed its bullish stance

:05:22. > :05:28.on the country, despite gloomy predictions for the global outlook.

:05:29. > :05:30.India's Finance Minister Arun Jaitley told us about

:05:31. > :05:51.I don't think double-digit growth is so easy. Countries can reach that

:05:52. > :05:58.target when the global nations are all supported. When they are hostile

:05:59. > :06:04.it is extremely difficult. Even within the present limitation of the

:06:05. > :06:08.world economy going slowly, volatility being fair, commodity

:06:09. > :06:17.prices being low, I think if we have a good monsoon and if we are able to

:06:18. > :06:20.address several domestic reforms, including strengthening the Indian

:06:21. > :06:27.banking system, which is what we are trying to do, for us to grow over

:06:28. > :06:32.the 7.5% we have reached is reasonably possible -- being there.

:06:33. > :06:35.That was the finance minister of India.

:06:36. > :06:37.Other business stories: As rescue efforts continue in the south

:06:38. > :06:39.of Japan after the weekend's earthquakes, factories in

:06:40. > :06:43.Car maker Toyota has suspended much of it's production

:06:44. > :06:46.across the entire country because of a shortage of parts from suppliers.

:06:47. > :06:49.Honda has suspended work at a motorcycle plant near the quake-hit

:06:50. > :06:51.city of Kumamoto, while electronics firm Sony has halted operations at

:06:52. > :06:59.The first Air France flight has landed in Tehran after a gap

:07:00. > :07:01.of 7.5 years, following last July's agreement to

:07:02. > :07:08.The airline had suspended flights to Tehran in October 2008 as the UN

:07:09. > :07:15.On board the flight was a delegation of French business

:07:16. > :07:22.leaders and the French Transport Minister, Alain Vidalies.

:07:23. > :07:31.-- Brazil's President Dilma Rousseff has lost her fight against plans to

:07:32. > :07:35.She says she will take her political battle for political survival to

:07:36. > :07:37.Two thirds of the lower chamber in Congress voted

:07:38. > :07:41.It comes after she was accused of tampering with government

:07:42. > :07:47.She says the impeachment amounts to a political coup.

:07:48. > :07:50.With me Jimena Blanco, head of Americas at risk consultancy

:07:51. > :08:03.Lovely to see you at again. We have talked about this on many occasions,

:08:04. > :08:07.haven't we, as this has unfolded. Talk us through this latest

:08:08. > :08:15.chapter. What now? It's now goes to the Senate. It is a 3-step process.

:08:16. > :08:18.The first two steps require a simple majority. It is likely the

:08:19. > :08:24.impeachment procedures will continue. Towards the third stage,

:08:25. > :08:29.what we would call a formal trial, at that point the head of the

:08:30. > :08:34.Supreme Court takes over as head of the Senate and overseas that process

:08:35. > :08:40.to ensure its constitutional, legal process cannot be challenged. I

:08:41. > :08:46.understand that he, you can remind me of his name, it is an individual

:08:47. > :08:51.many see as one that is not tarnished by the various allegations

:08:52. > :08:56.that not just pointed at Dilma Rousseff but many players in the

:08:57. > :09:02.political scene. Yes, when we look at the public opinion polls, the

:09:03. > :09:06.electorate has taken a negative at look of the political class. It is

:09:07. > :09:10.not just Dilma Rousseff but the vice president, the head of the lower

:09:11. > :09:14.chamber and the Senate, who people would like to see out of their jobs.

:09:15. > :09:21.When we get to the head of the Supreme Court, that is when public

:09:22. > :09:24.opinion turns and has a more positive outlook of him as an

:09:25. > :09:30.individual who can look over this process. How is the economy going

:09:31. > :09:36.with this going on? It is battling with low commodity prices, as with

:09:37. > :09:39.many economies around the world, but this political instability... And of

:09:40. > :09:47.course, not to forget the Olympics coming up. How is the economy sort

:09:48. > :09:57.of dire jesting all of this? It isn't. It is a captain less ship.

:09:58. > :10:03.The official data shows the recession is very deep and none of

:10:04. > :10:07.the changes are taking place. Therefore we don't see an end in

:10:08. > :10:11.sight. -- Ricardo Lewandowski it is worrying time for Brazil --

:10:12. > :10:15.captain-less ship. The political stalemate could continue -- it is a

:10:16. > :10:20.worrying time for Brazil. Even when President Rousseff, if she was

:10:21. > :10:24.removed from office, we don't know what would happen and who could be a

:10:25. > :10:30.viable successor to bring the Brazilian economy back on its feet.

:10:31. > :10:37.OK. We appreciate your time. Thank you so much. It is a story we will

:10:38. > :10:40.keep across. The price of oil has slid dramatically after the Doha

:10:41. > :10:46.meeting. It has pulled down share markets across Asia with Japan at

:10:47. > :10:54.one point down 3%. I will see you in a few minutes' time.

:10:55. > :10:56.Families across England will learn today where their children

:10:57. > :10:59.According to research by the charity, "Teach First,"

:11:00. > :11:03.parents from poorer households are losing out in the competition for