:00:00. > :00:18.Critical negotiations between oil producers could pave the way
:00:19. > :00:22.Oil prices are going up in anticipation, but will
:00:23. > :00:29.And the smoke hasn't cleared yet - shares of Samsung take another
:00:30. > :00:32.beating as senior managers grapple with the crisis surrounding
:00:33. > :00:41.the discontinued Galaxy Note7 smartphone.
:00:42. > :00:58.We will reveal the true value of second-hand snickers. You will be
:00:59. > :00:59.surprised. Stay with us for that -- sneakers.
:01:00. > :01:02.The price of oil is in the spotlight again today
:01:03. > :01:04.as the World Energy Congress meets in Istanbul.
:01:05. > :01:07.Ministers from oil producing nations will be hammering out how to ensure
:01:08. > :01:11.the continued recovery in the price of crude after hitting record lows.
:01:12. > :01:14.This meeting follows last months announcement from OPEC that the oil
:01:15. > :01:17.cartel would cut production for the first time since 2008
:01:18. > :01:24.That left one unanswered and very tricky question of which countries
:01:25. > :01:29.would reduce their output - and by how much?
:01:30. > :01:34.In other words, how will OPEC share the burden among its members?
:01:35. > :01:37.And that is expected to be the focus of a lot of horse trading
:01:38. > :01:41.at the World Energy Congress today - this ahead of OPEC's next official
:01:42. > :01:47.Still, despite the lack of clarity about the OPEC production cut,
:01:48. > :01:51.oil prices have been bouncing back in recent weeks.
:01:52. > :01:54.In fact, they've risen by about 15% since its announcement in September.
:01:55. > :01:56.Prices have also been boosted by President Putin's
:01:57. > :01:59.announcement that Russia will also limit production.
:02:00. > :02:09.With me is James McCullagh, oil analyst at Energy Aspects.
:02:10. > :02:19.Good morning. Soak the devil is in the detail, and in a sense, we don't
:02:20. > :02:23.know the detail. I wonder if we will get any more clarity today at the
:02:24. > :02:28.World Energy Congress? I think the World Energy Congress has probably
:02:29. > :02:33.been overplayed in terms of its importance as a 1-off event. The
:02:34. > :02:40.process, as you mentioned, for hammering at the individual
:02:41. > :02:45.allocations will be iterative, and that iterative process will go right
:02:46. > :02:49.to the wire. Who is there from OPEC at this Congress in Istanbul? All of
:02:50. > :02:56.the key players have representatives, not necessarily oil
:02:57. > :03:00.ministers. Iran and Iraq do not have oil ministers there. In terms of the
:03:01. > :03:09.key players at the moment, Russia is there. Saudi Arabia is there. It is
:03:10. > :03:17.represented by ministers. The big news out of the Congress is that
:03:18. > :03:22.Russia has committed to chip in with production cuts. I know one of your
:03:23. > :03:28.colleagues is there as well. It is quite funny. The wires overnight are
:03:29. > :03:32.saying Russia is perhaps not committed to that suggestion it made
:03:33. > :03:37.at the beginning of the week and now the price of oil is going down. It
:03:38. > :03:40.will be like that now until the end of November, every twist and turn
:03:41. > :03:45.will cause the price to spike awful? I think it will be very volatile as
:03:46. > :03:53.it was in the run-up to Algiers in September. Crude came down 1%
:03:54. > :03:56.overnight. That was following concerns perhaps at a potential lack
:03:57. > :04:03.of substance in Russia's commitment. We need to remember that Russia has
:04:04. > :04:11.no history in implementing cuts. Russia is not a member of OPEC.
:04:12. > :04:15.There is no precedent, if you like. Will this meeting going on in
:04:16. > :04:18.Istanbul that has been going on for several days, the World Energy
:04:19. > :04:23.Congress, will it help in getting some kind of unity together among
:04:24. > :04:27.OPEC members before that meeting in Vienna? As we all know, they
:04:28. > :04:32.announced the production cut, which was the big news that the price to
:04:33. > :04:37.spike. But we don't know if around, Iraq, Saudi Arabia, they will agree
:04:38. > :04:43.on who will carry the burden -- Iran. We do note the time being that
:04:44. > :04:48.OPEC as a group has committed to cutting 700,000 barrels a day. The
:04:49. > :04:52.problem you have is that the goalposts are continually moving. We
:04:53. > :04:57.have just had OPEC production data out for September, and they are
:04:58. > :05:02.pushing at record highs. The amount they will need to cut any potential
:05:03. > :05:09.amount that Russia may need to cut is in our opinion growing. So the
:05:10. > :05:18.Congress is one step in a long process that will go on right down
:05:19. > :05:23.to the wire. One would expect Saudi Arabia to take more than half of the
:05:24. > :05:30.burden. But as we saw in the run-up to Algiers, Iran might not Sarah Lee
:05:31. > :05:38.agreed to freeze at a certain baseline level. -- might not agree.
:05:39. > :05:42.That will have to be hammered out. We will see in the coming weeks.
:05:43. > :05:47.Thank you for your time. Interesting. If we do get any
:05:48. > :05:52.announcements out of Istanbul, we will fill you into day. But let's
:05:53. > :06:03.move on to the other big story, send some. -- Saint-Saens. -- Samsung.
:06:04. > :06:06.Samsung shares opened down a further 3% at the start of the trading
:06:07. > :06:10.The share price has since recovered a little since then,
:06:11. > :06:13.but the turmoil at the South Korean tech giant is putting renewed
:06:14. > :06:17.Samsung has ordered a permanent halt to production of its newest flagship
:06:18. > :06:20.smartphone because of continued reports the devices can catch fire.
:06:21. > :06:23.It's also told retailers worldwide to stop selling the Galaxy Note7,
:06:24. > :06:26.and told people with the phones not to turn them on.
:06:27. > :06:36.The share price has fallen on top of an 8% fall yesterday. People are
:06:37. > :06:44.realising the ramifications of this are wired and unknown. -- wide. The
:06:45. > :06:47.cost to the company of replacing and reimbursing people for 2.5 million
:06:48. > :06:53.smartphones, you could put a figure on that. And you can also try to put
:06:54. > :06:59.a figure on the lost sales. This was meant to be the big seller for the
:07:00. > :07:05.next 18 months. It now will not be. Those sales will go to other Samsung
:07:06. > :07:10.models and also to Apple and Chinese models. You can estimate that. But
:07:11. > :07:15.you can't really estimate the damage to the brand. I think people are now
:07:16. > :07:22.realising that they are big questions for Samsung. Do they give
:07:23. > :07:27.up on Alex? It had been very strong. -- galaxy. It was starting to
:07:28. > :07:34.challenge Apple as an iconic objective desire. Those kind of bids
:07:35. > :07:39.of jewellery that also do electronic things. Samsung was starting to win
:07:40. > :07:45.in that battle over the high end build of the slide phone market.
:07:46. > :07:50.Does it now give up on that because the successor to that successful
:07:51. > :07:55.model has clearly failed? -- smart phone. Investors are starting to
:07:56. > :08:01.realise it is not just a simple matter of a recall of one model of a
:08:02. > :08:07.friend. Questions are being asked how Samsung is being run and who is
:08:08. > :08:11.at the top -- model of a phone. I know there is an activist investor
:08:12. > :08:21.pushing for change at the top. How is that playing out? The big problem
:08:22. > :08:26.is that like all of the businesses in South Korea, it is a family firm.
:08:27. > :08:33.The project of the family has been serious the ill now and is
:08:34. > :08:37.incapacitated -- patria. He is not coming back, but he is still the
:08:38. > :08:43.patriarch. His son is in charge, de facto. Though not formally. The
:08:44. > :08:48.question really is what kind of authority has he got? What kind of
:08:49. > :08:57.experience has this and got? Is he the right man for the job? And then
:08:58. > :09:01.the wider question, if you pass leadership on from father to son,
:09:02. > :09:07.automatically, is that a good way of doing business? That question is
:09:08. > :09:11.there. From the outside, it is absolutely impossible to understand
:09:12. > :09:15.or answer how that power structure actually works. If you can't
:09:16. > :09:18.understand the power structure at the top, you have big questions
:09:19. > :09:25.about the company. All right. Thank you very much. So Samsung one of the
:09:26. > :09:30.biggest losers for the markets certainly in South Korea. As you can
:09:31. > :09:34.see, we have markets falling across-the-board in Asia. It follows
:09:35. > :09:41.a similar story on Wall Street the night before. We have a week yen and
:09:42. > :09:47.announcements of them the exact further stimulus in Japan, but
:09:48. > :09:51.Federal Reserve minutes will be released later today which will give
:09:52. > :09:54.more information as to when they will lift interest rates in the
:09:55. > :09:59.United States. All attention on that. We have seen the pound rise a
:10:00. > :10:02.bit. We will explain why were we look through the stories in the
:10:03. > :10:13.press. That is in just a moment. See you then.
:10:14. > :10:17.Sally will be back in a moment as we look through some of the
:10:18. > :10:20.international news.