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Now it is time for World Business Report.
Opec meets to check who is sticking to the rules on production cuts,
as the price of oil continues to flag.
We take a look at the cost of delivery around the world,
starting in Turkey, which has the highest rate of C-sections
Welcome to World Business Report, I'm Sally Bundock.
Also in the programme: Financial markets start the week
And South Korean courts are holding their closing arguments in the trial
of Samsung's Jay Y Lee. For most of us, a lower oil
price is a good thing. It means it costs less
to fill up our cars, and if you run a business,
transport and energy But for the countries that sell oil,
lower prices is a real headache, which is why Opec, the cartel
of 14 leading producers, Today and tomorrow,
they are meeting in Abu Dhabi. Since January, Opec and 11 other
oil-producing countries have been aiming to reduce global supply
by almost 1.8 million barrels a day. That is around 2% of everything
the world produces. OPEC hasn't formally said
what its target price for oil is. But the world's biggest supplier,
that's Russia, a non-Opec member, has based its government budget
on oil selling at $40 per barrel. The biggest and most
influential OPEC producer, But not all the countries involved
have cut production sufficiently. While OPEC members have done far
better at meeting their targets than non-members, collectively,
they didn't do everything they said they would in any of the first six
months of this year. With me is Nitesh Shah,
commodities strategist at ETF Good morning. What will they
achieve, if anything, in the next 48 hours? Well, I think the worst
offenders will get a slap on the wrist and will be told to do better.
Quite frankly there is not a lot that OPEC can do. They don't have a
system for any sanctions or any ability to get non-compliant
countries into line. And the non-compliant countries are who?
Shall we name and shame them? Well, it Iraq, the UAE, Gabon have been
performing badly recently within OPEC and then you have countries
outside of OPEC who are part of the deal, like Kazakhstan, who have been
hit badly as well. And in terms of the countries exempt from production
cuts in November, will some of those come on-board? For example Nigeria?
Yes, so Nigeria in it last meeting indicated it was willing to join the
pact at a production level higher than what they are producing
already. So it is not really doing much to bring well-balanced into
line. And why has the price of oil not been pushed up more than perhaps
it has? Is it to do with shale production going on? -- world
balances. We live in a different world in terms of production
globally than a few years back. US shale oil is much larger and more
nimble and industry. As soon as you get prices around the $50 mark the
production of US oil can increase substantially. It only takes about
$40 a barrel for US oil companies to break even. So what will Saudi
Arabia do about this? For Saudi Arabia it is extremely important the
oil price remained higher, especially as it is trying to
privatise its leading oil companies. That's right, Saudi Arabia needs a
much higher oil price. It has valued Saudi Aramco at around $80, around
$60 is what it would be satisfied with. It probably needs to cut
deeper it self and hope other countries follow suit. And of course
Aramco is coming to the market at some point, that is the idea.
Sometime around 28 they hope to sell part of the company and they need
that money to fill their coffers. And we shall keep an eye on that
OPEC meeting under way today and tomorrow in Abu Dhabi.
South Korean prosecutors are holding their closing arguments
in the trial of Samsung's heir apparent this morning.
Mariko Oi joins me now from our Asia business hub in Singapore.
Nice to see you. So this is Jay Y Lee. What is the outlook? Well, we
haven't seen any new lines just yet, but it is an ongoing trial, and as
you say, but closing argument is taking place this morning. It has
been dubbed the trial of the century, involving the country's
former president, the acting boss of Samsung, as you mentioned, Jay Y
Lee, and of course the President's friend. South Korean prosecutors are
holding their closing arguments in the trial against him, and he has
been denying bribery and embezzlement charges, but he is
accused of offering nearly $40 million to the President and her
friend in exchange for government support of a merger of two Samsung
subsidiaries. Mr Lee could face up to five years in prison if he is
found guilty, even longer if he is also convicted on the embezzlement
charges. Many bosses of these conglomerates have been accused or
even charged with bribery in the past but it is very, very unusual to
see a founding family member of such a massive company being indicted.
OK, for now, thank you very much indeed.
Around the globe, caesarean section rates have increased dramatically,
even as a large amount of them are not medically required.
While the average rate is 28% amongst OECD countries,
in Turkey, more than half of babies are born by C-section,
For this mother of one, life has not always been a walk in the park. On
the 36th week of her pregnancy, her doctor said she did not have enough
amniotic fluids left in her womb. She was taken urgently to a
Caesarean delivery. TRANSLATION: Women who give natural birth talk
about how they embrace their babies immediately, how they bonded, how
they felt their baby's arrival. I had to postpartum depression after
birth. Was I about mother? Could I not take care of myself? Was that
white I had to have a c-section? Here at this hospital, a babies are
born today, five of them by Caesarean section. See section is a
rather popular in Turkey. Over 50% of babies are born not by natural
birth but I these operations. That rate is the highest among OECD
countries. But why do so many expecting mothers go through these
operations? Is it by choice or by necessity? The increase of Caesarean
sections are due to a range of factors, including the rise of the
first births among older women, and multiple births resulting from IVF
treatment. But are all of these Caesarean sections medically
justified? Five years ago, Turkey adopted a law making it the first
country to punish elective Caesarean sections, but it still has one of
the highest rates of C sections among developed economies. Doctors
say the reasons for that are many, but that it is not about money. We
don't do more than we do see section as a doctor. The hospitals, yes,
maybe. Of course. But they don't push the doctors. If the patients as
that, I am really afraid of having a natural birth, so what can I do as a
doctor? Most Turkish women these days hope to give birth naturally,
but of course, things don't always go according to plan.
We are asking whether it is right that surgeons make money out
Let us know your thoughts at #BusinessOfBirth.
In other news: The UN Security Council unanimously
approved tougher sanctions over the weekend against North Korea,
which could cost the country $1 billion a year.
The US and China agreed to the new measures after a month
of talks, with the hope they will pressure Pyongyang back
Britons could obtain more control over what happens to personal
information, under proposals outlined by the Government.
Citizens will be able to ask for personal data,
or information posted when they were children,
The proposals are part of an overhaul of UK data protection
laws drafted by the Digital Minister, Matt Hancock.
Let show you financial markets really quickly. They are having a
really good session, with markets, you can see the Japanese Nikkei
above 20,000. The Dow Jones industrial average closing above 20
2000. Good news about the US Labour market on Friday boosting sentiment
in Asia today so a ten year high for many of these markets across Asia as
we start a brand-new trading week. I will see you in a minute for the
News review. Stay with us. The police watchdog in Scotland
is investigating after officers