:00:00. > :00:00.Now for the latest financial news with Sally and World Business
:00:00. > :00:18.Combating climate change, 20 more countries are set to join
:00:19. > :00:27.Britain is lagging behind the US when it comes to creating world
:00:28. > :00:35.We'll meet one entrepreneur who thinks he knows the way forward.
:00:36. > :00:43.Also in the programme: We hear from the boss of the drugs giant
:00:44. > :00:47.We start with one of the biggest issues facing businesses
:00:48. > :00:49.and individuals around the world, climate change.
:00:50. > :00:53.It seems as if we're about to see a major change in the way
:00:54. > :01:01.The United Nations says at least 20 more countries have indicated
:01:02. > :01:04.they will join the Paris climate change agreement later this week,
:01:05. > :01:08.raising hopes the deal will enter into force by the end of 2016.
:01:09. > :01:15.In the past month, the United States, China and Brazil
:01:16. > :01:16.have all ratified their participation
:01:17. > :01:19.in the Paris agreement and promised to cut back on greenhouse
:01:20. > :01:23.So far, 27 countries have already joined the climate deal.
:01:24. > :01:27.The Paris agreement will only come into force when 55 countries
:01:28. > :01:34.representing at least 55% of global emissions have formally joined it.
:01:35. > :01:36.Countries set their own targets for reducing emissions.
:01:37. > :01:39.However, questions still remain about ending fossil fuel subsidies
:01:40. > :01:50.So far, there has been little commitment to phase them out.
:01:51. > :01:53.Kate Levick is Director of Policy and Regulation at CDP,
:01:54. > :01:55.which runs a environmental disclosure scheme for companies
:01:56. > :02:04.Good morning, Kate. Thanks for coming in. It is encouraging that 20
:02:05. > :02:08.more countries are set to sign this accord by the end of the weak baht
:02:09. > :02:14.to what extent are businesses ready for this? That is right, Sally, it
:02:15. > :02:20.is very encouraging -- at the end of the week but to what extent. That is
:02:21. > :02:26.after the UN event in New York. What this will mean is there will be a
:02:27. > :02:30.global level playing field for companies. This will mean that the
:02:31. > :02:34.almost 200 countries which have signed up to the Paris agreement
:02:35. > :02:39.will be legally bound to fulfil their commitments which include
:02:40. > :02:43.ambitious emissions reductions on a global level and this will have a
:02:44. > :02:47.far-reaching effect on industrial sectors around the world and on
:02:48. > :02:51.national and international companies in many countries. Many businesses
:02:52. > :02:55.have seen this coming and some have been more prepared than others, some
:02:56. > :03:00.have changed significantly. Which have led the way? Those that have
:03:01. > :03:04.disclosed information to that investors through CDP have shown
:03:05. > :03:09.they are factoring this into their business strategy. More on 600
:03:10. > :03:15.companies have said they are doing so, these are major listed
:03:16. > :03:21.companies. That is about one third of companies since Paris. There are
:03:22. > :03:25.two thirds who still have to work this into their business plan. We
:03:26. > :03:29.are calling on them to take notice. I understand that the companies that
:03:30. > :03:33.have made some headway and have tried to shift are the energy and
:03:34. > :03:38.utility companies, which many would see as old traditional burners of
:03:39. > :03:44.fossil fuels. Talk us through that. That is right. The sectors with the
:03:45. > :03:50.most awareness and leadership are the energy and utilities sectors. We
:03:51. > :03:54.see leading examples of company practice in every sector. There are
:03:55. > :04:00.some high emitting sectors where we don't see so much action. At CDP we
:04:01. > :04:05.have identified, for example, 500 companies which do not say they are
:04:06. > :04:11.using an internal price on carbon to take business decisions even though
:04:12. > :04:15.they are in geographies with a carbon price regulation or one
:04:16. > :04:19.expected soon. We have run out of time, but thank you for your
:04:20. > :04:23.expertise this morning. And, of course, keep Anae on the website as
:04:24. > :04:25.we hear from the countries who decide to join up and sign up to the
:04:26. > :04:27.Paris accords -- an eye. The boss of the drugs giant
:04:28. > :04:30.GlaxoSmithKline has told the BBC that the company is working under
:04:31. > :04:34.the assumption that Britain won't be be part of the single European
:04:35. > :04:36.market once the country Andrew Witty says he doesn't expect
:04:37. > :04:40.any change to the UK's trading status for the next couple of years
:04:41. > :04:43.but that the company is planning its strategy around
:04:44. > :04:56.the UK eventually being outside Of course, there is a lot of talk
:04:57. > :04:59.and uncertainty, and that might have some effect on some parts of the
:05:00. > :05:03.economy but for a company like GSK nothing has changed. That is quite
:05:04. > :05:07.important to understand. It is unlikely for anything to change for
:05:08. > :05:12.two years until Article 50 is executed and negotiated. When that
:05:13. > :05:15.process begins and when it concludes, the areas we are
:05:16. > :05:25.interested in and directly impacts will to ask our regulatory. So what
:05:26. > :05:30.will the UK's relationship be? Will we have more regulation or not? We
:05:31. > :05:37.don't know yet. We are putting thoughts and ideas around that and
:05:38. > :05:44.we are looking forward to that. And the second question is if we will be
:05:45. > :05:51.in the single market in any shape of form and we say no. It would look
:05:52. > :05:56.something like a WTO environment with FTAs without the single market.
:05:57. > :05:59.That is the working hypothesis for the moment. Interesting, that was
:06:00. > :06:02.the boss of GlaxoSmithKline. In other news: British business
:06:03. > :06:05.confidence has fallen to a four-year Its survey says confidence has been
:06:06. > :06:09.dented by economic uncertainty and a slowdown in demand
:06:10. > :06:12.following the EU referendum. The services sector
:06:13. > :06:14.was the worst affected. More than a quarter of all companies
:06:15. > :06:17.surveyed said that uncertainty was the main threat to growth over
:06:18. > :06:20.the next six months. Samsung has offloaded its stake
:06:21. > :06:22.in four technology companies, including Japan's Sharp,
:06:23. > :06:25.in order to free up money to focus The South Korean tech giant is mired
:06:26. > :06:30.in a major recall of its flagship Galaxy Note 7 smartphone over
:06:31. > :06:33.a series of battery explosions. It's being reported the value
:06:34. > :06:36.of the stakes sold totals around If I asked you to think
:06:37. > :06:47.of a global technology company, the odds are the name you'd come up
:06:48. > :06:51.with would be American. We're starting a special
:06:52. > :06:55.look at tech talent, and today we're meeting a man who's
:06:56. > :07:44.app is just two weeks old. I think it is fair to say that US
:07:45. > :07:48.companies are encouraged to think globally from day one, certainly
:07:49. > :07:52.more so in the UK I think if you go to a conference in the US you will
:07:53. > :07:56.get laughed off the stage if you don't have an international
:07:57. > :08:00.expansion plan. If you do that in the UK you would be laughed off the
:08:01. > :08:05.stage. It reflects the difference between the US and the UK. In the UK
:08:06. > :08:10.we have had questions on growing the team fast. And that is reflective of
:08:11. > :08:18.the difference between the US and the UK at the moment. And I think it
:08:19. > :08:24.is especially good to see companies such as Transfer Wise and Deliveroo
:08:25. > :08:31.deliver globally. The more role models in the companies like that,
:08:32. > :08:36.the better the ecosystem. That is part of the focused through the
:08:37. > :08:38.week, so stay focused as we look into the issue of tech talent in the
:08:39. > :08:38.UK. Some worrying news about
:08:39. > :08:40.the Chinese banking sector. Sharanjit Leyl has
:08:41. > :08:50.more from Singapore. What is going on? That is right,
:08:51. > :08:53.Sally. There is the risk of a Chinese banking crisis, that is
:08:54. > :09:00.according to the bank for international settlements. They say
:09:01. > :09:07.debt to GDP is triple the level considered to be a potential danger.
:09:08. > :09:11.The credit to GDP gap hit 30.1 in the first quarter of 2016. Now, the
:09:12. > :09:15.health of the banking sector has long been a source of concern for
:09:16. > :09:20.financial markets since the financial crisis of 2008. There is
:09:21. > :09:23.being a huge boom in credit as the Chinese government has tried to spur
:09:24. > :09:28.flagging growth. Some of that lending hasn't been productive,
:09:29. > :09:35.according to the IMF. They estimate loans worth $1.3 trillion at risk of
:09:36. > :09:39.default. Because the system is owned and controlled by the government
:09:40. > :09:43.largely, those I have spoken to say the government would like to bail
:09:44. > :09:47.out the ranking sector if necessary. So it is not a big a worry as it
:09:48. > :09:51.might appear. Super, thank you so much. See you soon. In the markets,
:09:52. > :09:53.Japan closed for a public holiday. And a bit of a stronger yen. I will
:09:54. > :10:11.see you soon. The water regulator, Ofwat,
:10:12. > :10:14.is to publish proposals