:00:00. > :00:23.Oil prices surge after OPEC agrees to cut production,
:00:24. > :00:28.Does this mean a new lease on life for the divided cartel?
:00:29. > :00:31.Plus, clearing the air, VW pledges a cleaner future as it
:00:32. > :00:40.We hear from the boss at the Paris Motor Show.
:00:41. > :00:52.We'll be hearing from VW's Matthias Mueller in just a moment.
:00:53. > :01:03.This story is really moving the markets.
:01:04. > :01:06.We start in the Algerian capital Algiers where the OPEC group of oil
:01:07. > :01:08.producing nations have been holding talks.
:01:09. > :01:11.They have shocked global markets by agreeing to limit oil production
:01:12. > :01:17.The collapse in the price of crude from more than $100 a barrel to less
:01:18. > :01:21.But infighting between them has meant no co-ordinated action
:01:22. > :01:23.since the Global Financial Crisis eight years ago.
:01:24. > :01:32.OPEC is proposing to limit total oil output by its members to between 32
:01:33. > :01:35.and a half million and 33 million barrels per day.
:01:36. > :01:39.At the moment they are pumping 33 point two million barrels a day.
:01:40. > :01:42.So, that's a production cut of up to 700,000 barrels a day.
:01:43. > :01:46.It's not a lot on a global level, and the details still have to be
:01:47. > :01:48.agreed, but the news sent crude prices soaring.
:01:49. > :02:00.Brent Crude jumped 6%, to almost $49 a barrel.
:02:01. > :02:18.As ever with opaque it is not always very easy to understand what they
:02:19. > :02:22.have done. -- OPEC. The devil is in the details. The comments suggest
:02:23. > :02:26.there is a production cut coming but it is still unclear what that would
:02:27. > :02:31.look like. Which member countries will be reducing the amount of crude
:02:32. > :02:36.oil they produce. That will likely the decided at OPEC's next official
:02:37. > :02:40.meeting at the end of November. Although this is tentative, it is
:02:41. > :02:44.nevertheless very significant. This will be the first agreement to cut
:02:45. > :02:49.production by the cartel in eight years. Clash is on oil policy,
:02:50. > :02:55.especially between Iran and Saudi Arabia, make the likelihood of an
:02:56. > :03:00.agreement difficult. In the last two years, the price of crude has seen
:03:01. > :03:05.dramatic falls and the oil cartel has been under pressure to reduce
:03:06. > :03:06.how much it was pumping. Samira Hussain, BBC News, New York.
:03:07. > :03:08.Let's see how markets are reacting in Asia.
:03:09. > :03:11.Rico Hizon is following them for us in Singapore.
:03:12. > :03:21.It is nice to see you. Sally! Talk us through it. Investors are happy
:03:22. > :03:28.at this point. Especially those with exposure in energy companies. They
:03:29. > :03:33.are leading the rallies in Asia trade. That is after the news from
:03:34. > :03:39.OPEC they plan to cut oil production for the first time in eight years.
:03:40. > :03:42.Oil prices, as you can see, are also continuing to gain in Asia trade on
:03:43. > :03:51.top of that search you mentioned in New York. It is soaring by 9.5%. And
:03:52. > :03:56.a Chinese oil producer is jumping as well. Australia's would petroleum
:03:57. > :04:03.leaping. And the BHP Billiton leaping as well. Across-the-board,
:04:04. > :04:07.gains. Markets are broadly optimistic about the deal. But there
:04:08. > :04:12.are some analysts who are sceptical. They have pointed out the further
:04:13. > :04:15.rise in crude oil prices may be difficult because shale producers
:04:16. > :04:21.will not be cutting in recent months and will start increasing output.
:04:22. > :04:27.Currencies have firmed up on the news, like the Australian and
:04:28. > :04:29.Canadian dollars. Sally. Bank is. Rico Hizon in Singapore for us.
:04:30. > :04:33.Miswin Mahesh is an oil analyst at Barclay's.
:04:34. > :04:41.Nice to see you. Good morning. Give us your reaction. Rico Hizon says
:04:42. > :04:51.some people are still sceptical. We are still sceptical about it. They
:04:52. > :04:54.still had a few days before they iron out the details that matter
:04:55. > :04:58.because it producer has to tell the market how much they will be willing
:04:59. > :05:02.to get off it. In terms of scale, OPEC represents 40% of production
:05:03. > :05:06.but are only taking 1% off of global production. In that instance, one
:05:07. > :05:12.really needs to decide how are Libya, Nigeria, and Iraq going to
:05:13. > :05:16.react to this and if they do come up with the deal and they don't agree
:05:17. > :05:22.by the end of November, we might be back to square one again. In terms
:05:23. > :05:26.of the timetable, there is an OPEC meeting on November 30, where this
:05:27. > :05:33.gets signed and sealed, we hope and assume. But there is a long time to
:05:34. > :05:38.iron out the detail. Iran was key. Absolutely. The fact they can still
:05:39. > :05:44.pump there oil. Give us information on that. The big discussion is
:05:45. > :05:50.around how much will they let you run to? They are coming under
:05:51. > :05:54.sanctions. -- Iran. Initially the big stumbling block was that they
:05:55. > :06:00.could only do 3.8 million barrels of. Now they have given Iran an
:06:01. > :06:05.exception. That is good news for then. Once again, the thing is that
:06:06. > :06:12.even if they do agree in November it will only be implemented by January.
:06:13. > :06:16.OPEC does know that by January, it will be tighter in terms of demand
:06:17. > :06:21.in the Western Hemisphere as well. That will pick up. Briefly, Saudi
:06:22. > :06:25.Arabia itself, we have seen signs it is under a lot of pressure, for
:06:26. > :06:31.example, The Fall in the price of oil. Only last week it announced a
:06:32. > :06:38.big cut in salary wages in the service for them. It yes. The points
:06:39. > :06:43.of pain are being felt across the economy, civil servants, everything
:06:44. > :06:47.is going down. Clearly, $50 per barrel is not working for then. So
:06:48. > :06:52.it does seem like this effort to boost optimism in the market will
:06:53. > :06:59.help them get a better range, 50- $60 per barrel range. To get higher
:07:00. > :07:03.than that is difficult. We have shale to think about. We appreciate
:07:04. > :07:07.you coming in and sharing your analysis. We will keep an eye on the
:07:08. > :07:07.price of oil today as this continues.
:07:08. > :07:10.To Paris now, where the Paris Motor Show is getting under way.
:07:11. > :07:13.On Wednesday, VW unveiled its latest model, a small electric car.
:07:14. > :07:16.It has pledged to sell between 2-3 million electric vehicles
:07:17. > :07:21.The German car giant is struggling to draw a line under the worst
:07:22. > :07:23.crisis in its 78-year history, after admitting using technology
:07:24. > :07:25.in its diesel cars to cheat emissions tests.
:07:26. > :07:29.Our correspondent, Theo Leggett, is there and has been speaking to VW
:07:30. > :07:41.Just look at this crowd of journalists, all coming to see the
:07:42. > :07:48.unveiling of Volkswagen's new brand new high-tech car over there. It is
:07:49. > :07:52.a fresh start for VW. It is exactly one year the diesel emissions can do
:07:53. > :07:57.erupted causing the company so many problems. Watch progress as it made
:07:58. > :08:04.in sorting itself out since then? Let us go and ask the boss.
:08:05. > :08:09.TRANSLATION: Well, undoubtedly, this company made a huge mistake. We lost
:08:10. > :08:14.the trust of the authorities and our customers. We are in the process of
:08:15. > :08:18.resolving the crisis. We are working very constructively with authorities
:08:19. > :08:23.in Germany, Europe, and especially the United States. We want to get
:08:24. > :08:27.into an agreement with the Department of Justice, hopefully
:08:28. > :08:36.this year, so we can plan for the future with a sound base, especially
:08:37. > :08:40.with the fines will we have to pay. Investigations will decide what the
:08:41. > :08:44.problems were. It remains to be seen who exactly was involved. Recently,
:08:45. > :08:51.the United States, one of your former engineers, he pleaded guilty
:08:52. > :08:54.to four scandals related to the major scandal. It seems like a
:08:55. > :09:02.conspiracy is. Does this concern you that it may go much wider? There are
:09:03. > :09:07.more current and former people involved? Well, as I said before,
:09:08. > :09:12.our lawyers are working to clarify this. They are working with the DHA
:09:13. > :09:17.and are working flat out. At the moment I can't say if it was a
:09:18. > :09:24.conspiracy or not. Jones has looked at 13 million documents. They are
:09:25. > :09:28.reviewing then. And this is a very time-consuming process. We hope it
:09:29. > :09:31.is completed as soon as possible, ideally before the end of the year,
:09:32. > :09:36.so we can really start looking ahead. In the meantime, you are
:09:37. > :09:40.trying to plan ahead a future with electric cars making a quarter of
:09:41. > :09:44.your output. How difficult is it to plan for that when you don't know
:09:45. > :09:47.how much you are going to have to pay for mistakes in the past?
:09:48. > :09:51.TRANSLATION: I have always said that Volkswagen is about more than the
:09:52. > :09:57.crisis. We don't want the crisis to paralyse the company. We want to
:09:58. > :10:03.shape the automotive future and we have put in place our strategy up
:10:04. > :10:07.until 2025. We know what we have to do. Of course, we would love to use
:10:08. > :10:11.the money we will have to pay in fines, but we also know that
:10:12. > :10:16.Volkswagen is a copy and robust companies. We don't need to be
:10:17. > :10:21.afraid of the future. -- healthy. We have good prospects and are going to
:10:22. > :10:24.make the most of them and at the end of the day we will be a leading
:10:25. > :10:30.provider of sustainable mobility. That is the boss of VW. That is the
:10:31. > :10:33.end of World Business Report. We will see you in a moment for a quick
:10:34. > :10:34.look at the