:00:00. > :00:16.Time to join Sally for World Business Report.
:00:17. > :00:21.Can BP profit in a world awash with cheap oil?
:00:22. > :00:26.The fossil fuel giant releases it's latest results in the coming hours.
:00:27. > :00:33.And downgraded: Toshiba is removed from Tokyo's main stock board
:00:34. > :00:43.Is the Japanese giant's future now in doubt?
:00:44. > :00:48.Hello and a very warm come. This is World Business Report. I am Sally
:00:49. > :00:57.Bundock. The University of California
:00:58. > :01:00.is using wi-fi enabled drones to create a system of 3D imaging
:01:01. > :01:03.which could potentially allow them We will have more on that in a
:01:04. > :01:09.moment. In the next few hours, BP,
:01:10. > :01:13.one of the worlds biggest oil producers will release
:01:14. > :01:15.its latest set of results. The numbers will be a strong
:01:16. > :01:18.indicator of how the industry is doing in a world where a $50 oil
:01:19. > :01:22.price has become the new normal. Analysts are estimating the company
:01:23. > :01:24.will report a profit in excess of $600 million
:01:25. > :01:28.for the second quarter of the year. That would be a big leap
:01:29. > :01:30.on from the losses it made in the
:01:31. > :01:37.same period in 2016. However it's still a long
:01:38. > :01:43.way behind rival Shell, which made $3.6 billion
:01:44. > :01:45.over the period. One of the reasons for not
:01:46. > :01:49.being closer to Shell is an expected $750 million write down -
:01:50. > :01:53.that's a loss to you and me - and that's for a gas project
:01:54. > :01:56.in Angola it deemed to no longer Well the price of oil is at around
:01:57. > :02:01.half the $100-plus That's squeezed balance sheets
:02:02. > :02:05.and forced the likes of BP to spend money only
:02:06. > :02:08.where it can deliver big returns. Nick Coleman focuses on the energy
:02:09. > :02:17.sector at S Global Platts. Good morning. Thank you for coming
:02:18. > :02:23.in. So it is true to say BP is more financially vulnerable than, say,
:02:24. > :02:29.Shell. But we had to mention the Gulf of Mexico disaster. It is
:02:30. > :02:34.paying out for the. -- it is still paying out for that. They are paid
:02:35. > :02:37.$60 billion in that time. That is partly because the payments are
:02:38. > :02:41.phased and are going to continue for more than a decade to come. But even
:02:42. > :02:48.in the first quarter of this year, they paid out over $2 billion.
:02:49. > :02:52.Compared with Shell, that shows how it is not really performing in the
:02:53. > :03:00.same way as some of its main rivals. It is promising some news tomorrow.
:03:01. > :03:04.What is a promising for its shareholders? It is promising to
:03:05. > :03:09.increase its cash flow from the second half of this year and in the
:03:10. > :03:15.years up to 2020, it will add new capacity. So about 1 million barrels
:03:16. > :03:20.of oil a day in places like the Gulf of Mexico, sorry, in the North Sea.
:03:21. > :03:25.And these companies are all increasing their production. So they
:03:26. > :03:32.get the benefit of the doubt from investors, to some extent. Can BP
:03:33. > :03:37.cover its investment costs and also pay out its dividend, which it is
:03:38. > :03:45.committed to, if the price stays at $50? Shell is saying they all ready
:03:46. > :03:50.can. They are saying they can get fit for the 40s. BP is still
:03:51. > :03:54.struggling one. It cannot cover investment to replace the business,
:03:55. > :03:58.keep new production coming, and pay the dividend. It can't really do
:03:59. > :04:03.that, or it has been unable to do that at $50, quite yet. We will see
:04:04. > :04:08.what they have to say about that. That is key, isn't it? For BP, is
:04:09. > :04:13.comfortably in everybody's pension fund. It has been for a long time.
:04:14. > :04:18.BP or Shell, you would have one of the other. If BP is not seen as a
:04:19. > :04:22.company they can deliver, it is a concern, is that it? These companies
:04:23. > :04:29.wanted of Brayden Sier themselves from, for instance, the Shell
:04:30. > :04:34.drilling. -- these companies want to differentiate themselves from. These
:04:35. > :04:38.can be sound like sound investors prolong time. Last year, BP said it
:04:39. > :04:44.you would average hourly for 40 years. That should bring BP almost
:04:45. > :04:48.200,000 barrels a day in a 40 year period. That is the sort of thing
:04:49. > :04:55.investors like. OK. Thank you for coming in so early to provide your
:04:56. > :04:57.analysis. We will have the news on BP in one hour and 20 minutes. More
:04:58. > :05:06.analysis then, too. Now, let's talk about
:05:07. > :05:09.the University of California. They're using wi-fi enabled drones
:05:10. > :05:12.to create a system of 3D imaging which could potentially allow them
:05:13. > :05:15.to "see through" walls. We will have more
:05:16. > :05:17.on that in a moment. BBC Click spoke to the woman behind
:05:18. > :05:31.the project to see how it works. True drones fly outside the area of
:05:32. > :05:37.interest. One sends a signal and the other analysis it. Each object in
:05:38. > :05:43.Drax with the transmission, according to its material property,
:05:44. > :05:45.location, and geometry. So we can say that in a sense each object
:05:46. > :06:09.leaves a mark on the transmission. Any technology can be used for good
:06:10. > :06:15.purposes and can also be misused. And this technology is also no
:06:16. > :06:18.exception. But the hope is that as a society we always push for
:06:19. > :06:23.technologies to be used for the good of the society.
:06:24. > :06:30.To negation signal such as Wi-Fi signals are everywhere, these days,
:06:31. > :06:33.so it is important to understand fundamentally how much they can
:06:34. > :06:39.sense and learn about the environment. -- transmission
:06:40. > :06:41.signals. This is important so that we can ensure that they are used in
:06:42. > :06:56.a proper way. That's stay with technology and look
:06:57. > :06:57.at the ongoing trouble surrounding Japan's ailing electronics giant
:06:58. > :06:57.Toshiba. Its shares were demoted
:06:58. > :07:00.to the second tier of the Tokyo Stock Exchange this
:07:01. > :07:03.morning due to its liabilities exceeding its assets
:07:04. > :07:05.in the last financial year. Joining me now from our
:07:06. > :07:15.Asia Business Hub in Singapore Sharanjit Leyl, this is going from
:07:16. > :07:21.bad to worse, isn't it? It does seem to be that way, Sally. Unusually, in
:07:22. > :07:24.spite of the demotion from that prestigious first section of the
:07:25. > :07:29.Tokyo stock exchange, shares are rising today. They are up about 6%.
:07:30. > :07:33.That is due to the fact that there are a lot of retail investors
:07:34. > :07:38.picking it up, trying to make a quick dollar. But as you say, the
:07:39. > :07:45.demotion from the main section of the board, that is a comedown from
:07:46. > :07:52.the -- for the conglomerate. It has been described as a washed up top
:07:53. > :07:56.Gear Atley, it is seemingly tearing it up in second division. We know it
:07:57. > :08:02.has been struggling to restructure since huge losses in its nuclear is
:08:03. > :08:07.this in the US. What happens with Japanese businesses, if they get
:08:08. > :08:13.demoted when they make these recordings. They get delisted
:08:14. > :08:16.entirely when they have had two consecutive years of negative
:08:17. > :08:21.shareholder equity. And as you say, Toshiba has flagged that it is
:08:22. > :08:24.labour that is exceeded its assets by just over $5 billion this
:08:25. > :08:28.financial year. What they are trained to do now is a lock their
:08:29. > :08:31.prized assets, which are the memory chip division, trying to avoid a
:08:32. > :08:43.second year of brutal losses, essentially brought on by those cost
:08:44. > :08:44.overruns. Thank you for joining us Sharanjit Leyl with the latest on
:08:45. > :08:47.Toshiba. In other news, Qatar has
:08:48. > :08:50.filed a formal complaint with the World Trade Organisation
:08:51. > :08:52.against the economic embargo imposed on it in June by
:08:53. > :08:54.neighbouring Arab states. Qatar's minister of economy
:08:55. > :08:57.and commerce said the trade boycott, led by Saudi Arabia,
:08:58. > :08:59.was a clear violation A split in the Bitcoin community
:09:00. > :09:04.is set to create a new incompatible version of the crypto-currency
:09:05. > :09:05.today. A group of insiders is unhappy
:09:06. > :09:08.with existing plans to speed They plan to offer existing
:09:09. > :09:20.investors a matching amount of a new virtual asset,
:09:21. > :09:22.called Bitcoin Cash, which could put pressure
:09:23. > :09:35.on the value of original bitcoins. That's quickly look at the markets.
:09:36. > :09:39.We talked about oil. We are waiting for the BP results. Oilers in focus
:09:40. > :09:45.because the price keeps going up and up. You can see Brent crude about
:09:46. > :09:50.$52 a barrel. Nymex is about $50 a barrel for the first time since May.
:09:51. > :09:52.Oil stocks are doing well, energy doing well, and earnings coming
:09:53. > :09:57.through stronger than expected for many companies listed around the
:09:58. > :09:58.world. That is boosting general competence. I will see you