: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