02/05/2017 World Business Report

Now it's time for World Business Report.

Back in the black - after two years of losses,

BP's set to reveal it's making profits again thanks to the rise

And, can the thrill of the auction room be recreated online?

We investigate the digital challenges for the likes

BP's expected to say it's been making a profit in recent months,

drawing a line under years of painful cost cutting

and transformation as it grappled with low oil prices.

Using the oil giant's preferred measure of underlying replacement

cost profit, last year it made a loss of $2.6 billion -

The shift in the price of oil on global markets was the main

reason why - the white line shows you the slide.

It bottomed out at $27.88 a barrel in January 2016.

The yellow line shows you BP's share price during that time

and the effects of the two-year slump in the oil market

as well as the cost of the Deepwater Horizon disaster.

This year BP plans to sell off around $4.5 billion

worth of assets as part of a global portfolio overhaul.

Details we know on that so far include last month's announcement

that it's selling a 50% stake in a Chinese petrochemical business

to Sinopec, and it's agreed to sell the North Sea's largest

But BP has been buying assets too - building up its natural-gas

business, and this year it's made acquisitions in Egypt and West

It's also spent $1.3 billion on 527 fuel stations in Australia.

Bob Dudley, its Chief Executive, has been praised for how he handled

the Deepwater Horizon disaster and navigated the massive fall

in the price of oil - still that was not enough to counter

the critics who last year said his $19 million salary

was far too big, given the multibillion-dollar losses

the company delivered in the last couple of years.

With me is Iain Reid, Senior Oil Gas equity

Good morning. Nice to see you. What are you expecting the P2 delivered

today? As you said BP and the rest of the industry are not showing a

big recovery. The oil price has gone up substantially. We are expecting

BP to report in about one hour were also earnings of $1.3 billion.

Looking at Chevron, Exxon and another company who reported last

week, they did a little better than the market was expecting so would

not be entirely surprised if BP outperformed expectations of the

market today. And course, Shell to follow on Thursday. If it is down to

the fact that the price of oil has gone up or is it about the

combination of that with all of the cost-cutting may have vowed to do

and transformation of their business, to a great degree? Yeah,

they have responded. Possibly better than people were expecting since the

oil price started to fall. They have cut their overall investment levels

by about 50%, they have cut their operating costs by at least 30%. So

it is a combination, obviously of rising prices and also falling cost.

We are somewhat concerned that the price of oil will not continue to

rise so they need to continue this journey, if you like, if they are

going to save their cash flow and that is important for their dividend

pay-out. They need that to continue. And just explain to our viewers who

are unaware, the dividend payments of the oil companies are very

important, aren't they? They keep them in, don't they? They make up

and all fully large amount of the FTSE 100, and our pension funds in

the UK. Has BP got it right? We have been analysing how they have reacted

to this fall in the price of oil and as you say they need to get used to

it you normal in the price of oil. What is the strategy like for the

years ahead for BP? Like the rest of the industry, they think we have

reached more of a plateau, if you like, in terms of growth now so

there are now, as you said, there is a period of growth going on now as

well as all of the cost-cutting. So I think they will try to continue to

grow a little bit, pay a little more in terms of dividends and muddle

through and hopefully oil prices will rise will further. And,

briefly, Bob Dudley and the theme of revolts going on at general meetings

last year in regard to corporate bosses pay. It was one of those.

Will he get more criticism, do you thing, or is this news today going

to enable him to continue without that sort of Spotlight on how much

is earning? There will be some of that, I am certain, but they have

responded to that. His pay was cuddled it. They have probably done

enough to ward off from. If he staying in the offer the foreseeable

future? Absolutely. There is no obvious replacement scheduled so I

think it will be there for a while. As soon as we get the numbers from

BP, they are expected in the next few hours, we will update you. But

now, some other business stories. Greece and its foreign creditors has

just reached a deal on a package of bailout-mandated

reforms this morning, Greek Finance Minister

Euclid Tsakalotos says. The deal means further rescue funds

can now be delivered. The deal, which includes

labour and energy reforms as well as pension

cuts and tax rises. Talks began last October as part

of Greece's latest bailout review and were originally

expected to have been President Donald Trump says

he is considering breaking up big Wall Street banks, by splitting

their consumer business White House spokesman Sean Spicer

said there were no further details Shares in banks initially fell

after President Trump's comments These days we buy

more and more online. Well, it turns out

paintings are no exception. British auctioneer Christie's

is closing one of its auction rooms in London and moving

more operations online. And to meet increased demand

from Asia it has set up offices But can it capture the famous

excitement of an auction room on a website and stay ahead

of growing online competition? Under the hammer, in the age of the

Internet, even auctioneers of fine art cannot afford to sit still. So,

how do you bring art into the modern world? When images are no longer

exclusive that shared widely on social media. I have come to talk to

the boss of the world's leading auction house to find out. We are

using the technology, we are using broadcasts of our expert and the

object. Christie 's was established 250 years ago. The Frenchman who

runs it says that more and more of his customers will want to purchase

online but they still demand a very traditional servers. It is very easy

to set up an online operation in the art world. But, very quickly what

makes the difference is the expertise that you receive from the

business. But how about buyers with more modest budgets who still want

to brighten up their walls? Enter the entrepreneur. A budding

community of our retailers cutting out the cost of an auction room

Gallery by selling paintings online. It is a very cost-effective way of

doing business. Bus, our writer Melanie says that sometimes a bit of

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

do a little more before you sell huge and very pricey pieces of art

to someone and I don't think people want to necessarily do that online.

They want to be in the room, they want the luxury status of another

human being or Greg Jennett can give you. Christie 's is working to

recreate some of that vital atmosphere on its website. But this

is a blank canvas. Global online sales in the art market are still

less than 10% of the total. Leaving plenty of room for new talent.

A quick look at the markets today. All of the main markets in Asia are

open and trading following a bankable of a weekend for many. A

weaker yen helps Japan. In the US, they were open yesterday. The

banking stocks caused a wobble. Keep an eye open for BP this morning but

also later today Apple comes out with its latest earnings. That's why

investors and market watchers will be focused on. I will be back in a

moment for the papers will stop. George Osborne starts his new job

as editor of the London newspaper The appointment of the former

Chancellor drew criticism