12/12/2016 World Business Report

Up up and away - the price of the black stuff soars

on the first global oil pact for 15 years.

Fasten your seat-belts - a leading global risk consultancy

warns 2017 will be the toughest year for business leaders since the cold

war - we grill the boss to find out why.

Also in the programme following the lead from India -

Venezuela removes the 100 bolivar note and replaces it

People have got just 72 hours to make the change.

On international markets the price of oil is headed in one direction

today following another historic deal brokered over the weekend

This time it was oil producers who are not members of the oil

cartel meeting - 11 countries who agreed to cut their output

The group of states, which includes Russia,

said they will cut supplies by 558,000 barrels per day.

This follows last months announcement from OPEC that it

would be slashing its own production to ease an over-saturated global

The moves come after more than two years of depressed oil prices,

which have more than halved since 2014.

This deal marks the first global pact for 15 years.

Among the non-Opec countries attending the meeting were Russia -

Azerbaijan, Oman, Mexico, Malaysia, Sudan, South Sudan and Bahrain.

Sharanjit Leyl is in our Asia Business Hub in Singapore.

No surprise that the price of oil is spiking today? That's right. They

have risen to their highest level since 2015. This comes after what

you just mentioned, Sally, this deal between OPEC and non- OPEC producers

have reached essentially for the first time since 2001 to jointly

curb output. The move is aimed at easing the global supply light. That

has lasted for more than two years and has driven down oil prices over

the last year also -- glut. They say that these will take effect in

January of next year. Today, we saw Brent Crude rice to the highest

level since 2013. We saw US West Texas also hitting at July 2015 high

of just over $54 per barrel. Of course, with this deal now finally

signed after almost one year, the markets' focus is now focusing

towards whether the agreement will be kept. We are seeing Goldman Sachs

and writing in a note that both OPEC and non- OPEC producers are going to

have to fulfil this forecast but as you saw from those prices, it

already is. We already saw from oil giants like Saudi Arabia Omodei have

already told US customers that they will reduce oil deliveries from

January and she mentions the number of barrels, they are going to start

cutting. A reminder, OPEC is saying it will slash output by 1.2 million

barrels per day. This is from January one. We are also seeing

this, eight thousand Aral 's per day by the non-OPEC producers. That is

just short of the Tarkyn. -- Aral 's per day.

-- barrels per day. There is concern about whether OPEC members and non-

OPEC members will follow through. OPEC is saying it is having a

meeting in May of next year to assess how the various countries

have been doing in terms of policing and following through with the cuts

in production. A lot more details on this story on our website.

The Venezuelan government has announced that it will replace

the country's highest denomination bank notes -

that's the 100 bolivar note - with coins within seventy-two hours.

It hopes this will help to combat smuggling and tackle the chronic

shortage of food and other basic items.

President Nicolas Maduro says smuggling gangs that operate

in border areas won't have time to repatriate the money.

A similar move in India recently caused chaos.

Bill English has been sworn in as New Zealand's 39th

Prime Minister, one week after John Key

announced his surprised resignation, after eight years in the role.

Mr English had earned praise for his handling of the country's

economy in his previous role as finance minister.

The new leader says he wants to make New Zealand a better place to live

and work, through a focus on infrastructure and inclusive

State carrier Iran Air has signed a deal to buy 80 passenger planes

It is the biggest US-Iran deal since the 1979 Islamic revolution.

Boeing says the deal was worth 16.6 billion dollars

at current list prices, and had been approved

The first planes are scheduled for delivery in 2018.

Passengers will be able to fly from London to Australia non-stop

for the first time, when Qantas launches its new service

Australia's national carrier says it will connect Perth,

in the west of the country, to the UK capital using Boeing 787-9

This year has seen its fair share of jolts: Brexit,

Trump, eurozone leadership upheavals, South Korea's corruption

International risk consultancy Control Risks has launched

its annual RiskMap report, analysing key risks facing

The rise of populism, highlighted by the election

of Donald Trump in the US and the Brexit vote in the UK

are providing increased uncertainty for business leaders,

as is rising protectionism and threats to new and existing

And then of course we have the threat of terrorism.

Joining me now from Singapore is Richard Fenning, CEO of Control

What would you say are the key risks in the new Year? What we have to

remember about 2017 is that the scene has been set, as you just

mentioned in your introduction. It has been a turbulent rollercoaster

of a year. Geography no longer determines whether it happens. We

are likely to see in the first part of 2017 whether we are going to be

in trade award territory, whether the eurozone is likely to be able to

stay together -- trade war territory for some I'm confident that both

will be resolved broadly happily for international business at the first

6- months of 2017 will be very telling. As you say, it will be

telling. Elliptical risk will be the key theme especially in Europe with

elections in France, Netherlands and Germany, to mention a few. How are

you suggesting business leaders prepare, given the level of

uncertainty about next year? I think there are two things. One is

certainly for Brexit and Trump, people were not willing to face up

to the possibility that either outcome was like little stop there

is also risk of overcompensation. That people feel that every

implausible scenario is about to happen. The reality is, people have

to be prepared, look at the downside scenarios, look at what will happen

to the currency situation, what will happen to the regulatory situation

and have something in place. It also applies to many of the other risks

that are out there as well, the cyber area, you mentioned terrorism

and international security, can feel that we are living in a wind tunnel.

That's suddenly everything is coming at people all at once. It's also

important to prepare to get a sense of perspective. Yes, we are going

through an acutely turbulent time but looking at it historically,

there is nothing particularly unusual about this period. These

things come in spikes, waves, crescendo is of risk related

activity. By the end of 2017, the -- we may well be back in calmer

waters. I hope you are right. Thank you.

That's show you how today's going in Asia. The big story is the price of

oil spiking. It is boosting the energy stocks listed in Asia. I'll

see you soon. European migrants living in the UK

want a guarantee that they can stay in the country after Brexit,

according to a campaign group.