04/09/2017

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:00:16. > :00:18.A flight to safety - Donald Trump warns he could sever

:00:19. > :00:20.ties with North Korea's trading partners in response

:00:21. > :00:28.Counting the cost of Hurricane Harvey.

:00:29. > :00:31.The deadly storm has knocked a quarter of the US's oil

:00:32. > :00:35.We'll ask an expert what this could mean

:00:36. > :00:49.In a minute we'll take a hands-on look at the latest gadgets to be

:00:50. > :00:52.unveiled at Europe's biggest technology fair.

:00:53. > :01:01.Just hours after Pyongyang said it tested a hydrogen bomb,

:01:02. > :01:07.President Trump tweeted the US is considering slapping trade

:01:08. > :01:09.embargos on all countries that do business with North Korea.

:01:10. > :01:12.This includes India, Russia, Pakistan and perhaps most notably,

:01:13. > :01:19.The latest figures show trade between the US and China is worth

:01:20. > :01:29.this makes China the United States' biggest trading partner.

:01:30. > :01:32.Many experts believe that Washington is leaning on Beijing to isolate

:01:33. > :01:38.Trade with China is crucial to the fortunes of Pyongyang,

:01:39. > :01:41.with over 80% of all North Korean exports being purchased

:01:42. > :01:45.by their neighbours across the border.

:01:46. > :02:05.Nice to see you. A bit more about this new threat of wider sanctions.

:02:06. > :02:13.Well, there is still no clarity on what this could be. This was from a

:02:14. > :02:17.tweet from Donald Trump bite, Sally, and Bago from the United States

:02:18. > :02:24.almost will surely result in friction with Beijing and Moscow.

:02:25. > :02:28.But it could be the price for denying Kim Jong-un the resources

:02:29. > :02:32.for his weapons programme. There are many ways and Bardot can be put in

:02:33. > :02:36.place. The Trump administration could simply declare one and then go

:02:37. > :02:46.about enforcing it on its own. Alternatively the White House with

:02:47. > :02:49.Chinese and Russians leaders submits an embargo resolution to the UN

:02:50. > :02:56.Security Council and demand they accept it without delay. Chinese

:02:57. > :03:02.banks are vulnerable to US criminal prosecution and, more importantly

:03:03. > :03:05.sanctions. The bank of China is especially at risk and the US

:03:06. > :03:09.Treasury could find or even designate it as a primary

:03:10. > :03:17.money-laundering concern. Letters under the Patriot Act in the US.

:03:18. > :03:20.This could definitely brewing trade and business between two of the

:03:21. > :03:24.largest trading partners in the world. In the meantime, how our

:03:25. > :03:30.financial markets faring in Asia? If we have a look at the updated

:03:31. > :03:33.numbers over the lunchtime break, the markets have not really gone

:03:34. > :03:39.ballistic, thank goodness. The losses are not what many had

:03:40. > :03:49.expected on the equity markets. Some shedding just 0.7%. The Japanese

:03:50. > :03:56.market and less than 1% down. Hong Kong, Sydney and Singapore are all

:03:57. > :04:01.slipping less than 0.5% however Shanghai White early losses to rise

:04:02. > :04:05.slightly in midday trade. This latest flareup sent investors

:04:06. > :04:10.fleeing for safe assets with the yen climbing to around 110 against the

:04:11. > :04:16.US dollar. The Swiss Franc was also higher and gold is spiking to a ten

:04:17. > :04:22.month peak to sit above $1330 per ounce. Kopper is at at a two-year

:04:23. > :04:26.top on strong activity. When you speak to analysts, they see the key

:04:27. > :04:30.now is the response of the international community, given how

:04:31. > :04:35.ineffective the UN sanctions have been at discouraging North Korea.

:04:36. > :04:41.The United Nations Security Council will have a second meeting in a week

:04:42. > :04:47.to discuss what to do after this latest North Korean nuclear test.

:04:48. > :04:52.Thank you very much. Good to see you, thank you for keeping us across

:04:53. > :04:54.the latest. Meeting after the other big event the mind of President

:04:55. > :04:56.Trump. At least 47 people have died

:04:57. > :04:59.since Hurricane Harvey hit Texas Some residents have been allowed

:05:00. > :05:03.to return to their homes but flood waters are still rising

:05:04. > :05:05.in other areas. President Trump has asked

:05:06. > :05:07.Congress for $7.8 billion as an initial payment to help

:05:08. > :05:10.with recovery efforts following the flooding in both

:05:11. > :05:12.Texas and Louisiana. The White House says

:05:13. > :05:15.about 100,000 homes, not all of which were fully insured,

:05:16. > :05:19.had been affected by the storm and the flooding

:05:20. > :05:22.that accompanied it. Texas Governor Greg Abbott said

:05:23. > :05:27.the state could need as much as $180 billion from the federal

:05:28. > :05:32.government to help it recover. The storm at its height

:05:33. > :05:35.knocked up to 24% of US oil It's also believed the nation's

:05:36. > :05:41.largest refinery in Port Arthur may be shut for up to two weeks -

:05:42. > :05:44.sending petrol prices higher Joining us now is Arun Pillai Essex,

:05:45. > :06:06.managing consultant at Verisk Thank you for being on the

:06:07. > :06:09.programme. Can we start with the estimate of the cost? It is

:06:10. > :06:13.difficult to say at this point how much it will cost but Federal aid

:06:14. > :06:17.will be required and it is money that the Federal government does not

:06:18. > :06:23.really have. You are absolutely correct. The Texas governor has

:06:24. > :06:28.estimated the price to be 180 billion dollars which would make it

:06:29. > :06:32.30 or $40 billion more than the largest natural disaster prior, that

:06:33. > :06:37.is hurricane Katrina. Significantly more than Hurricane and Sandy in

:06:38. > :06:43.2012. Already it is definitely going to be the most expensive US national

:06:44. > :06:47.disaster in terms of its wider economic impact, third-quarter

:06:48. > :06:55.growth was estimated around 3% and I think with Harvey is likely to be

:06:56. > :07:00.0.5% less. It is a large knock-on impact that we see in the associated

:07:01. > :07:04.sectors around the golf. Oil, gas and petrochemical companies. They

:07:05. > :07:08.are the notable industries that are being impacted. Can we focus on the

:07:09. > :07:14.energy industry there and the impact. It has improved in the last

:07:15. > :07:19.few days. What is the latest? To 5% of the total US refining capacity

:07:20. > :07:25.remains off-line which is quite significant. 10% of offshore

:07:26. > :07:29.platforms remain evacuated. The major ports along the Texas coast

:07:30. > :07:33.are unable to take in large container verses with crude oil

:07:34. > :07:39.imports from places like Mexico so it really is remaining quiet a

:07:40. > :07:44.difficult period. If you look at oil and gas prices and futures for

:07:45. > :07:50.gasoline, they have surged to two year high of. So there is still a

:07:51. > :07:59.lot of movement. Just briefly, the impact on the oil price, do you

:08:00. > :08:05.think, if any? I think people expect petrochemicals to come back online

:08:06. > :08:09.in the next few weeks so this long-term impact is unlikely to be

:08:10. > :08:14.that significant. This is also a factor in the fact that onshore

:08:15. > :08:21.shale production has been quite high whereas in previous national

:08:22. > :08:25.disasters impacting the coast, there was a lot more speculation in the US

:08:26. > :08:30.market so the impact on prices was certainly more significant. We saw

:08:31. > :08:33.more volatility there. That is not to say the prices haven't gone up,

:08:34. > :08:39.they have in many south-east and is AIDS. -- they have in many

:08:40. > :08:42.south-eastern States. It's touted as Europe's biggest tech

:08:43. > :08:46.show, but in the past few years, titans such as Samsung have

:08:47. > :08:48.abandoned Berlin's IFA exhibition. Now, smaller competitors

:08:49. > :08:51.are using the event to make a case for their innovations -

:08:52. > :09:09.particularly their sleek This is one of the standout product

:09:10. > :09:13.here this year. It is the new the 13 smart phone. I have gone with some

:09:14. > :09:16.of the gimmicks from devious models, no sightscreen and now modular

:09:17. > :09:20.design. The focus is very much on taking pictures and on shooting

:09:21. > :09:26.video. To that end, there are in a new cameras on the back, there is a

:09:27. > :09:29.deep and beautiful lead screen and a lovely Zoom feature which you can

:09:30. > :09:32.pick a particular object or person in the distance and then the camera

:09:33. > :09:38.will very, very smoothly zooming towards it. The question for this

:09:39. > :09:43.phone, as with previous models, some of which have had cutting-edge

:09:44. > :09:47.features that have not sold well, is or can it make inroads into crowded

:09:48. > :09:53.and competitive smart phone market? I think LG has always been about

:09:54. > :09:58.twists. It may not be number one in phones, it may not be the thinnest

:09:59. > :10:02.or the cheapest or the brightest, there are many things that they are

:10:03. > :10:08.not. But one thing we have always been used giving people an

:10:09. > :10:12.alternative choice. There are two ways you can compete with Samsung

:10:13. > :10:16.and apple. One is with cutting-edge features and the other, such as with

:10:17. > :10:23.his $400 motor works for, is to compete aggressively on price. We

:10:24. > :10:28.priced at world to target discriminating consumers. Someone

:10:29. > :10:31.who wants a high-quality smart phone experience but maybe is not looking

:10:32. > :10:35.for the flagship prices. We designed a phone to provide all those

:10:36. > :10:40.benefits the price did very well. In just a couple of weeks a new iPhone

:10:41. > :10:58.is likely to dominate the headlines. But manufacturers like those here

:10:59. > :11:00.will be hoping that is a too will still be able to make a