02/05/2017

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:00:00. > :00:16.Now it's time for World Business Report.

:00:17. > :00:19.Back in the black - after two years of losses,

:00:20. > :00:22.BP's set to reveal it's making profits again thanks to the rise

:00:23. > :00:30.And, can the thrill of the auction room be recreated online?

:00:31. > :00:32.We investigate the digital challenges for the likes

:00:33. > :00:51.BP's expected to say it's been making a profit in recent months,

:00:52. > :00:56.drawing a line under years of painful cost cutting

:00:57. > :01:01.and transformation as it grappled with low oil prices.

:01:02. > :01:04.Using the oil giant's preferred measure of underlying replacement

:01:05. > :01:07.cost profit, last year it made a loss of $2.6 billion -

:01:08. > :01:13.The shift in the price of oil on global markets was the main

:01:14. > :01:17.reason why - the white line shows you the slide.

:01:18. > :01:27.It bottomed out at $27.88 a barrel in January 2016.

:01:28. > :01:35.The yellow line shows you BP's share price during that time

:01:36. > :01:42.and the effects of the two-year slump in the oil market

:01:43. > :01:45.as well as the cost of the Deepwater Horizon disaster.

:01:46. > :01:49.This year BP plans to sell off around $4.5 billion

:01:50. > :01:53.worth of assets as part of a global portfolio overhaul.

:01:54. > :01:57.Details we know on that so far include last month's announcement

:01:58. > :02:00.that it's selling a 50% stake in a Chinese petrochemical business

:02:01. > :02:03.to Sinopec, and it's agreed to sell the North Sea's largest

:02:04. > :02:09.But BP has been buying assets too - building up its natural-gas

:02:10. > :02:12.business, and this year it's made acquisitions in Egypt and West

:02:13. > :02:21.It's also spent $1.3 billion on 527 fuel stations in Australia.

:02:22. > :02:25.Bob Dudley, its Chief Executive, has been praised for how he handled

:02:26. > :02:27.the Deepwater Horizon disaster and navigated the massive fall

:02:28. > :02:30.in the price of oil - still that was not enough to counter

:02:31. > :02:33.the critics who last year said his $19 million salary

:02:34. > :02:39.was far too big, given the multibillion-dollar losses

:02:40. > :02:44.the company delivered in the last couple of years.

:02:45. > :02:48.With me is Iain Reid, Senior Oil Gas equity

:02:49. > :03:03.Good morning. Nice to see you. What are you expecting the P2 delivered

:03:04. > :03:12.today? As you said BP and the rest of the industry are not showing a

:03:13. > :03:16.big recovery. The oil price has gone up substantially. We are expecting

:03:17. > :03:22.BP to report in about one hour were also earnings of $1.3 billion.

:03:23. > :03:25.Looking at Chevron, Exxon and another company who reported last

:03:26. > :03:30.week, they did a little better than the market was expecting so would

:03:31. > :03:33.not be entirely surprised if BP outperformed expectations of the

:03:34. > :03:38.market today. And course, Shell to follow on Thursday. If it is down to

:03:39. > :03:42.the fact that the price of oil has gone up or is it about the

:03:43. > :03:45.combination of that with all of the cost-cutting may have vowed to do

:03:46. > :03:51.and transformation of their business, to a great degree? Yeah,

:03:52. > :03:54.they have responded. Possibly better than people were expecting since the

:03:55. > :03:59.oil price started to fall. They have cut their overall investment levels

:04:00. > :04:05.by about 50%, they have cut their operating costs by at least 30%. So

:04:06. > :04:10.it is a combination, obviously of rising prices and also falling cost.

:04:11. > :04:15.We are somewhat concerned that the price of oil will not continue to

:04:16. > :04:19.rise so they need to continue this journey, if you like, if they are

:04:20. > :04:25.going to save their cash flow and that is important for their dividend

:04:26. > :04:30.pay-out. They need that to continue. And just explain to our viewers who

:04:31. > :04:34.are unaware, the dividend payments of the oil companies are very

:04:35. > :04:43.important, aren't they? They keep them in, don't they? They make up

:04:44. > :04:50.and all fully large amount of the FTSE 100, and our pension funds in

:04:51. > :04:54.the UK. Has BP got it right? We have been analysing how they have reacted

:04:55. > :04:59.to this fall in the price of oil and as you say they need to get used to

:05:00. > :05:03.it you normal in the price of oil. What is the strategy like for the

:05:04. > :05:06.years ahead for BP? Like the rest of the industry, they think we have

:05:07. > :05:12.reached more of a plateau, if you like, in terms of growth now so

:05:13. > :05:17.there are now, as you said, there is a period of growth going on now as

:05:18. > :05:23.well as all of the cost-cutting. So I think they will try to continue to

:05:24. > :05:26.grow a little bit, pay a little more in terms of dividends and muddle

:05:27. > :05:31.through and hopefully oil prices will rise will further. And,

:05:32. > :05:36.briefly, Bob Dudley and the theme of revolts going on at general meetings

:05:37. > :05:40.last year in regard to corporate bosses pay. It was one of those.

:05:41. > :05:44.Will he get more criticism, do you thing, or is this news today going

:05:45. > :05:48.to enable him to continue without that sort of Spotlight on how much

:05:49. > :05:54.is earning? There will be some of that, I am certain, but they have

:05:55. > :06:01.responded to that. His pay was cuddled it. They have probably done

:06:02. > :06:06.enough to ward off from. If he staying in the offer the foreseeable

:06:07. > :06:09.future? Absolutely. There is no obvious replacement scheduled so I

:06:10. > :06:14.think it will be there for a while. As soon as we get the numbers from

:06:15. > :06:16.BP, they are expected in the next few hours, we will update you. But

:06:17. > :06:21.now, some other business stories. Greece and its foreign creditors has

:06:22. > :06:25.just reached a deal on a package of bailout-mandated

:06:26. > :06:26.reforms this morning, Greek Finance Minister

:06:27. > :06:28.Euclid Tsakalotos says. The deal means further rescue funds

:06:29. > :06:30.can now be delivered. The deal, which includes

:06:31. > :06:33.labour and energy reforms as well as pension

:06:34. > :06:35.cuts and tax rises. Talks began last October as part

:06:36. > :06:38.of Greece's latest bailout review and were originally

:06:39. > :06:40.expected to have been President Donald Trump says

:06:41. > :06:43.he is considering breaking up big Wall Street banks, by splitting

:06:44. > :06:46.their consumer business White House spokesman Sean Spicer

:06:47. > :06:50.said there were no further details Shares in banks initially fell

:06:51. > :06:58.after President Trump's comments These days we buy

:06:59. > :07:08.more and more online. Well, it turns out

:07:09. > :07:12.paintings are no exception. British auctioneer Christie's

:07:13. > :07:14.is closing one of its auction rooms in London and moving

:07:15. > :07:17.more operations online. And to meet increased demand

:07:18. > :07:20.from Asia it has set up offices But can it capture the famous

:07:21. > :07:25.excitement of an auction room on a website and stay ahead

:07:26. > :07:40.of growing online competition? Under the hammer, in the age of the

:07:41. > :07:47.Internet, even auctioneers of fine art cannot afford to sit still. So,

:07:48. > :07:50.how do you bring art into the modern world? When images are no longer

:07:51. > :07:55.exclusive that shared widely on social media. I have come to talk to

:07:56. > :08:00.the boss of the world's leading auction house to find out. We are

:08:01. > :08:09.using the technology, we are using broadcasts of our expert and the

:08:10. > :08:13.object. Christie 's was established 250 years ago. The Frenchman who

:08:14. > :08:17.runs it says that more and more of his customers will want to purchase

:08:18. > :08:26.online but they still demand a very traditional servers. It is very easy

:08:27. > :08:34.to set up an online operation in the art world. But, very quickly what

:08:35. > :08:38.makes the difference is the expertise that you receive from the

:08:39. > :08:42.business. But how about buyers with more modest budgets who still want

:08:43. > :08:47.to brighten up their walls? Enter the entrepreneur. A budding

:08:48. > :08:51.community of our retailers cutting out the cost of an auction room

:08:52. > :08:57.Gallery by selling paintings online. It is a very cost-effective way of

:08:58. > :09:04.doing business. Bus, our writer Melanie says that sometimes a bit of

:09:05. > :09:09.this as is a vital part of a sale. Art not like a book. You do need to

:09:10. > :09:14.do a little more before you sell huge and very pricey pieces of art

:09:15. > :09:19.to someone and I don't think people want to necessarily do that online.

:09:20. > :09:25.They want to be in the room, they want the luxury status of another

:09:26. > :09:29.human being or Greg Jennett can give you. Christie 's is working to

:09:30. > :09:34.recreate some of that vital atmosphere on its website. But this

:09:35. > :09:38.is a blank canvas. Global online sales in the art market are still

:09:39. > :09:46.less than 10% of the total. Leaving plenty of room for new talent.

:09:47. > :09:53.A quick look at the markets today. All of the main markets in Asia are

:09:54. > :09:58.open and trading following a bankable of a weekend for many. A

:09:59. > :10:05.weaker yen helps Japan. In the US, they were open yesterday. The

:10:06. > :10:09.banking stocks caused a wobble. Keep an eye open for BP this morning but

:10:10. > :10:15.also later today Apple comes out with its latest earnings. That's why

:10:16. > :10:17.investors and market watchers will be focused on. I will be back in a

:10:18. > :10:26.moment for the papers will stop. George Osborne starts his new job

:10:27. > :10:31.as editor of the London newspaper The appointment of the former

:10:32. > :10:35.Chancellor drew criticism