07/08/2017

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:00:00. > :00:15.Now it is time for World Business Report.

:00:16. > :00:22.Opec meets to check who is sticking to the rules on production cuts,

:00:23. > :00:25.as the price of oil continues to flag.

:00:26. > :00:30.We take a look at the cost of delivery around the world,

:00:31. > :00:33.starting in Turkey, which has the highest rate of C-sections

:00:34. > :00:43.Welcome to World Business Report, I'm Sally Bundock.

:00:44. > :00:46.Also in the programme: Financial markets start the week

:00:47. > :00:56.And South Korean courts are holding their closing arguments in the trial

:00:57. > :00:59.of Samsung's Jay Y Lee. For most of us, a lower oil

:01:00. > :01:03.price is a good thing. It means it costs less

:01:04. > :01:05.to fill up our cars, and if you run a business,

:01:06. > :01:08.transport and energy But for the countries that sell oil,

:01:09. > :01:13.lower prices is a real headache, which is why Opec, the cartel

:01:14. > :01:18.of 14 leading producers, Today and tomorrow,

:01:19. > :01:22.they are meeting in Abu Dhabi. Since January, Opec and 11 other

:01:23. > :01:25.oil-producing countries have been aiming to reduce global supply

:01:26. > :01:28.by almost 1.8 million barrels a day. That is around 2% of everything

:01:29. > :01:30.the world produces. OPEC hasn't formally said

:01:31. > :01:36.what its target price for oil is. But the world's biggest supplier,

:01:37. > :01:39.that's Russia, a non-Opec member, has based its government budget

:01:40. > :01:42.on oil selling at $40 per barrel. The biggest and most

:01:43. > :01:50.influential OPEC producer, But not all the countries involved

:01:51. > :01:54.have cut production sufficiently. While OPEC members have done far

:01:55. > :01:57.better at meeting their targets than non-members, collectively,

:01:58. > :02:00.they didn't do everything they said they would in any of the first six

:02:01. > :02:07.months of this year. With me is Nitesh Shah,

:02:08. > :02:27.commodities strategist at ETF Good morning. What will they

:02:28. > :02:30.achieve, if anything, in the next 48 hours? Well, I think the worst

:02:31. > :02:34.offenders will get a slap on the wrist and will be told to do better.

:02:35. > :02:39.Quite frankly there is not a lot that OPEC can do. They don't have a

:02:40. > :02:42.system for any sanctions or any ability to get non-compliant

:02:43. > :02:46.countries into line. And the non-compliant countries are who?

:02:47. > :02:53.Shall we name and shame them? Well, it Iraq, the UAE, Gabon have been

:02:54. > :02:57.performing badly recently within OPEC and then you have countries

:02:58. > :03:02.outside of OPEC who are part of the deal, like Kazakhstan, who have been

:03:03. > :03:05.hit badly as well. And in terms of the countries exempt from production

:03:06. > :03:11.cuts in November, will some of those come on-board? For example Nigeria?

:03:12. > :03:15.Yes, so Nigeria in it last meeting indicated it was willing to join the

:03:16. > :03:19.pact at a production level higher than what they are producing

:03:20. > :03:23.already. So it is not really doing much to bring well-balanced into

:03:24. > :03:31.line. And why has the price of oil not been pushed up more than perhaps

:03:32. > :03:37.it has? Is it to do with shale production going on? -- world

:03:38. > :03:41.balances. We live in a different world in terms of production

:03:42. > :03:45.globally than a few years back. US shale oil is much larger and more

:03:46. > :03:51.nimble and industry. As soon as you get prices around the $50 mark the

:03:52. > :03:55.production of US oil can increase substantially. It only takes about

:03:56. > :04:00.$40 a barrel for US oil companies to break even. So what will Saudi

:04:01. > :04:04.Arabia do about this? For Saudi Arabia it is extremely important the

:04:05. > :04:09.oil price remained higher, especially as it is trying to

:04:10. > :04:16.privatise its leading oil companies. That's right, Saudi Arabia needs a

:04:17. > :04:23.much higher oil price. It has valued Saudi Aramco at around $80, around

:04:24. > :04:26.$60 is what it would be satisfied with. It probably needs to cut

:04:27. > :04:32.deeper it self and hope other countries follow suit. And of course

:04:33. > :04:37.Aramco is coming to the market at some point, that is the idea.

:04:38. > :04:40.Sometime around 28 they hope to sell part of the company and they need

:04:41. > :04:44.that money to fill their coffers. And we shall keep an eye on that

:04:45. > :04:47.OPEC meeting under way today and tomorrow in Abu Dhabi.

:04:48. > :04:49.South Korean prosecutors are holding their closing arguments

:04:50. > :04:52.in the trial of Samsung's heir apparent this morning.

:04:53. > :04:57.Mariko Oi joins me now from our Asia business hub in Singapore.

:04:58. > :05:06.Nice to see you. So this is Jay Y Lee. What is the outlook? Well, we

:05:07. > :05:11.haven't seen any new lines just yet, but it is an ongoing trial, and as

:05:12. > :05:15.you say, but closing argument is taking place this morning. It has

:05:16. > :05:19.been dubbed the trial of the century, involving the country's

:05:20. > :05:24.former president, the acting boss of Samsung, as you mentioned, Jay Y

:05:25. > :05:28.Lee, and of course the President's friend. South Korean prosecutors are

:05:29. > :05:33.holding their closing arguments in the trial against him, and he has

:05:34. > :05:37.been denying bribery and embezzlement charges, but he is

:05:38. > :05:42.accused of offering nearly $40 million to the President and her

:05:43. > :05:49.friend in exchange for government support of a merger of two Samsung

:05:50. > :05:53.subsidiaries. Mr Lee could face up to five years in prison if he is

:05:54. > :05:59.found guilty, even longer if he is also convicted on the embezzlement

:06:00. > :06:04.charges. Many bosses of these conglomerates have been accused or

:06:05. > :06:08.even charged with bribery in the past but it is very, very unusual to

:06:09. > :06:14.see a founding family member of such a massive company being indicted.

:06:15. > :06:15.OK, for now, thank you very much indeed.

:06:16. > :06:17.Around the globe, caesarean section rates have increased dramatically,

:06:18. > :06:20.even as a large amount of them are not medically required.

:06:21. > :06:22.While the average rate is 28% amongst OECD countries,

:06:23. > :06:25.in Turkey, more than half of babies are born by C-section,

:06:26. > :06:52.For this mother of one, life has not always been a walk in the park. On

:06:53. > :06:57.the 36th week of her pregnancy, her doctor said she did not have enough

:06:58. > :07:02.amniotic fluids left in her womb. She was taken urgently to a

:07:03. > :07:06.Caesarean delivery. TRANSLATION: Women who give natural birth talk

:07:07. > :07:10.about how they embrace their babies immediately, how they bonded, how

:07:11. > :07:16.they felt their baby's arrival. I had to postpartum depression after

:07:17. > :07:21.birth. Was I about mother? Could I not take care of myself? Was that

:07:22. > :07:24.white I had to have a c-section? Here at this hospital, a babies are

:07:25. > :07:28.born today, five of them by Caesarean section. See section is a

:07:29. > :07:33.rather popular in Turkey. Over 50% of babies are born not by natural

:07:34. > :07:37.birth but I these operations. That rate is the highest among OECD

:07:38. > :07:41.countries. But why do so many expecting mothers go through these

:07:42. > :07:48.operations? Is it by choice or by necessity? The increase of Caesarean

:07:49. > :07:53.sections are due to a range of factors, including the rise of the

:07:54. > :07:58.first births among older women, and multiple births resulting from IVF

:07:59. > :08:02.treatment. But are all of these Caesarean sections medically

:08:03. > :08:07.justified? Five years ago, Turkey adopted a law making it the first

:08:08. > :08:11.country to punish elective Caesarean sections, but it still has one of

:08:12. > :08:14.the highest rates of C sections among developed economies. Doctors

:08:15. > :08:21.say the reasons for that are many, but that it is not about money. We

:08:22. > :08:29.don't do more than we do see section as a doctor. The hospitals, yes,

:08:30. > :08:38.maybe. Of course. But they don't push the doctors. If the patients as

:08:39. > :08:45.that, I am really afraid of having a natural birth, so what can I do as a

:08:46. > :08:49.doctor? Most Turkish women these days hope to give birth naturally,

:08:50. > :08:59.but of course, things don't always go according to plan.

:09:00. > :09:04.We are asking whether it is right that surgeons make money out

:09:05. > :09:16.Let us know your thoughts at #BusinessOfBirth.

:09:17. > :09:18.In other news: The UN Security Council unanimously

:09:19. > :09:21.approved tougher sanctions over the weekend against North Korea,

:09:22. > :09:23.which could cost the country $1 billion a year.

:09:24. > :09:26.The US and China agreed to the new measures after a month

:09:27. > :09:29.of talks, with the hope they will pressure Pyongyang back

:09:30. > :09:35.Britons could obtain more control over what happens to personal

:09:36. > :09:37.information, under proposals outlined by the Government.

:09:38. > :09:39.Citizens will be able to ask for personal data,

:09:40. > :09:41.or information posted when they were children,

:09:42. > :09:48.The proposals are part of an overhaul of UK data protection

:09:49. > :09:59.laws drafted by the Digital Minister, Matt Hancock.

:10:00. > :10:04.Let show you financial markets really quickly. They are having a

:10:05. > :10:11.really good session, with markets, you can see the Japanese Nikkei

:10:12. > :10:16.above 20,000. The Dow Jones industrial average closing above 20

:10:17. > :10:21.2000. Good news about the US Labour market on Friday boosting sentiment

:10:22. > :10:24.in Asia today so a ten year high for many of these markets across Asia as

:10:25. > :10:27.we start a brand-new trading week. I will see you in a minute for the

:10:28. > :10:33.News review. Stay with us. The police watchdog in Scotland

:10:34. > :10:37.is investigating after officers