tv BBC Business Live BBC News December 12, 2017 8:30am-9:01am GMT
this is business live from bbc news with sally bundock and ben bland. two years on from the paris climate deal world leaders are back in the city to work out how they are going to pay for all their promises. live from london, that's our top story on tuesday december 12. they need $100 billion a year to make it work, and america now won't pay a penny — so can world leaders come together today and work out how to fund the paris climate agreement? also in the programme, the price of brent crude oil has hit its highest level in two years after a key pipeline from the north sea was shut due to safety fears. and the markets across europe are on
central bank watch with the fed meeting starting today. we also have the european central bank the bank of england as the week progresses. and we'll be getting the inside track on how artificial intelligence is helping to ‘drive‘ the self—driving car revolution. and as world leaders meet to talk about climate change what steps do you think they should take? fewer flights, less driving, perhaps laced meat? let us know. just use the hashtag bbcbizlive. hello and welcome to business live. get in touch with your top tips or ideas when it comes to making us all a bit more environmentally friendly. let's start in paris, on this day, in 2015, a landmark deal to tackle climate change was agreed by almost every nation on the planet.
now, two years on, national leaders are meeting back in paris to discuss the deal and how to pay for it. the deal commits 195 countries to keep the rise in global temperatures to less than 2 degrees celsius from the pre—industrial era. the international energy agency has estimated it will take $3.5 trillion a year for the next 30 years to contain that rise of global temperatures. as part of the deal rich nations have agreed to maintain a $100 billion a yearfunding pledge to help developing countries to adapt and develop renewable resources. however questions have been raised over where much of this money will come from after president trump pulled the us, the world's second—largest carbon emitter — out of the deal. president trump says the agreement would cost the us 6.5 millionjobs and $3tn in lost gdp — while rival economies like china and india are treated more favourably. let's get more on this story
with helen mountford, global director of economics at the world resources institute — who joins us from paris. i suppose the big question is can they achieve this without america? there is an incredible momentum here, i think we have a grouping of countries, we have got states and businesses and investors who are capturing the moment we had in paris and moving ahead. we are expecting a number of announcements later today on how they are stepping up to help close the gap both on financing and action. what would you like to see from them in terms of big practical steps, would be the key things you think they could agree at this gathering to try and deal with climate change? i think one of the most exciting tournaments at the moment is in the finance sector,
investors and banks are starting to recognise the importance of understanding climate related financial risk and opportunities. where the real opportunities of the future are and those are renewable energy and storage batteries and restoring degraded lands. there is enormous economic and investment opportunities. they are starting to see that and they are also seen the risks of continuing to go on with business as usual where we invest in fossilfuel, or reinvest business as usual where we invest in fossil fuel, or reinvest in congested and polluted cities. the cost are enormous, an estimated 3 million people per year die of air pollution alone. when of the exciting things to look for is for the investors will say, are they going to be asking companies to start disclosing how aligned they are with the paris agreement? there are with the paris agreement? there are recommendations on this from the 620 are recommendations on this from the g20 task force and there are are
already 100 companies and banks that say they will be commenting these. willmore come forward? that's what i would be looking for today. from that it sounds like your perspective is the onus, the key momentum needs to come from businesses rather than government. no, it has to come from everybody, both, business needs clear policy and regulatory framework to do their business well. but a number of them are stepping up already and moving forward, we also have a number of countries who are represented here who were expecting to come forward and even within the us we have got an incredible movement amongst the us states and cities as well as businesses, universities, who are still in for the paris agreement, who represent about half of the us economy who have said they are still intending
to meet the paris agreement calls. thank you very much. 0ne one of the uk's most important pipelines was stopped after a crack was discovered. we have our economics correspondent andrew walker with us. i serious is this? serious enough that the pipeline system will be closed for weeks rather than days, we do not have a specific timescale but as you indicated, it's a very big dealfor the north sea industry, it has a capacity of getting on for half a million barrels per day, to put it ina million barrels per day, to put it in a global context that is equivalent to about 10% of the total oil production of iran or iraq so this is a major disruption to the
industry. presumably that is why we have seen such a spike in the price of brent crude? absolutely, and some other interesting features, there is more of an increase in the premiums you have to pay for delivery now rather than a few weeks or months. also an increase in the premium for the brent price from the north sea compared with what you are having to pay for american crude oil. that also partly reflects has been an increase in shell production in the us, but the widening of the premium for north sea oil is very much down to these developments. is the time of year also a factor, because we are in the middle of the winter. absolutely, and there was a bigger surge in the wholesale price of gas. it is winter and as i am sure you noticed it's a particularly cold phase of this part of winter so demand is pretty strong and at the moment we're having this interruption to supply. thanks very for that. we will keep an eye out.
let's take a look at some of the other stories making the news. france's unibail—rodamco has agreed to buy shopping mall owner westfield for $211] billion including debt, in what would be the biggest takeover of an australian company on record. the deal accelerates consolidation amid the global retail property sector as it grapples with challenges from online retailers led by amazon.com. the financial times is reporting that the world's largest listed oil and gas group, exxonmobil, is to start publishing reports on the possible impact of climate policies on its business. the decision is being seen as a success for investors who have been pushing for improved disclosure on the risks it faces. finance ministers in five european countries have written to their us counterpart to warn that planned changes to american tax law could violate international rules. in a letter to the us treasury secretary the ministers argued the proposed changes would risk having a major distortive impact on international trade.
these are the asian markets, closing down by one third of a percent, the closing figure is correct but the big zero is not. the reason markets in asia were mixed is not a bit flat is partly because traders worldwide are treading water with the fed reserve meeting beginning today and ending tomorrow with the expectation we could see the cost of borrowing going up in the world's biggest economy so let's look at europe. you can see the ftse treading water, it is the case across europe, we have some very stock specific stories, news that comcast has pulled out of the attempts to buy sky, so it looks
like walt disney might be one of the biggest winners, that's an interesting one to keep an eye on. we will keep an eye on markets in detail at the moment. but let's go to new york and look ahead to the day on wall street. all eyes will be on the federal reserve as it begins its two day meeting on interest rates. the fed kept interest rates unchanged at the last meeting and pointed to a solid us economic growth and the strengthening labour market. the expectation is that the fed will raise interest rates. we will not know until the end of the meeting which is on wednesday. also happening on tuesday the labor department will report it producer price index rose 3% in the month of november compared with an increase of .4% in the previous month. and finally the treasury department report on the federal budget is expected to show the us federal government ran a $134 billion
deficit in the month of november. david bloom, global head of fx strategy at hsbcjoins me now. lots of central bank action this week. it is a busy week before silly jumper time which will probably start next week. at the moment we have the federal reserve, and as you said and 97% rate hike, the ecb, the bank of england, if you are interested in emerging markets russia and turkey. it's all happening this week. which will grab your attention? we are all assuming we will get a rate rise tomorrow in the us but what about other central banks? i think the others could be dull as dishwasher because we are interested in is what it will tell us. we think the bank of england will raise rates again in the first quarter next year but will they give us quarter next year but will they give us the signal? this is forward guidance, what they are thinking and
how they are thinking. it's more difficult for the bank of england, in the united states the economy is doing well, there are issues with the ability to get reforms through etc but here in the uk you have got brexit, strong pound, inflation spikes, it's much harderfor mark carney? it is but central banks decide what to do and tell us well in advance so actually the way you think about it, the central bank think about it, the central bank think about it, what we used to do in the old days is spent how were they thinking and what they were thinking, what they might do that now they just tell us. so life thinking, what they might do that now theyjust tell us. so life is a lot easier than it was before and we have to price it. maybe that is why volatility, market going up and down is practically an adult i'm low at the moment is the central bank, the most important central bank in the world, the fed, 97% priced in. but they have to deliver! we get the latest inflation figures
injust underan hourorso we get the latest inflation figures injust under an hour or so and it will give us an hint as to whether the bank of england have made the right move when the increased interest rates at the beginning of november. yes the markets are always looking for justification november. yes the markets are always looking forjustification and verification but always looking for the next meeting as well. there was an interesting story on the oil pipeline which shows how involved everything is in financial markets, what does that mean for the next inflation numbers? will the bank of england in no it as a temporary factor? these are the thinking when you get one little thing, it moves into all other areas of the market, oil prices going up, who benefits and who loses? do not give us the a nswer to and who loses? do not give us the answer to those questions, you will come back and talk about that later on. thank you. david will be back, including less, we will speak to one of the brains behind self driving cars. about the brains in self driving cars, we're going to be talking
about how ai and how it's making the driverless cars a reality. you're with business live from bbc news. so we have been talking about the sillyjumper season. so we have been talking about the silly jumper season. in case so we have been talking about the sillyjumper season. in case you hadn't noticed christmas is around the corner and prices are going up. the british public are well into the swing of festive shopping. joining us now is fraser mckevitt, head of retail and consumer insight at ka ntar world panel. you can us through the latest figures where they indicate the biggest amount of activity is? well, the overall market is up by 3.1%. it is at the same run rate it has been going for at 2017. supermarkets are nervously looking forward towards christmas because that's a big trading season for them and shoppers
expect to spend £1.5 billion on the friday and saturday before christmas so they have to get it right. consumers are feeling the pressure. inflation in grocery is currently running at 3.6% and that's squeezing budgets so people are having to work out how them economize. will he shop until we drop on the key dates before christmas day. it is crucial to the supermarkets profitability in the new year? it's a big question and we don't really know, but the indicators are that spending will continue. food and drink is not something you choose not to buy and the other thing to remember, times are tough economically for a lot of people and we want to have a good christmas. we want to enjoy ourselves and spend time and the money that that requires with our friends and our family. which retailers do you think will come out as president winners? which ones will come out with the bumper
numbers in the new year? you could divide the market into three easily. 0n the one hand we have the discount retailers in the uk, aldi and lidl andi retailers in the uk, aldi and lidl and i would expect the growth to continue over christmas. now, they don't tend to have the highest market share at christmas because people go to the other retailers more, perhaps some of the more up market ones, but the discounters will be shouting about a bumper christmas. in the middle we have everybody else. where growth is a little bit difficult. a little bit sluggish, but tesco is ahead of their so—called big four rivals and finally we have online sales. now that over the last couple of years has been a story of extraordinary growth, but that's slowing. thank you. you're watching business live. our top story: 0n the two year anniversary of the 2015 paris climate accord, president emmanuel macron hosts
new summit in bid to ease financing crunch for climate change—fighting measures. a quick look at how markets are faring. a fairly mixed, if not flat, picture. traders are treading water ahead of the conclusion of the us federal reserve's meeting in the us and then we have the bank of england and then we have the bank of england and european central bank as well this week too. the future of motoring — we're told — is self—driving cars. giants like google and tesla and pumping billions into developing the tech that will bring us a driverless future. at the heart of the technology is artificial intelligence and our next guest is hoping to use his own particular brand of ai will help his firm steal a march on his bigger competitors. he's the boss of fiveai. it was founded right here in the uk in 2015 with the aim of creating a world beating autonomous vehicle company.
since then its attracted investment of almost $27 million. it may seem like a lot, but is it enough to compete? globally, it's been estimated that there have been 160 deals in the last three years alone, aimed at developing self—driving vehicles. and its thought total investment in that time has been around $80 billion. stan boland is the boss of fiveai and joins me now. tell us about what you're doing and how it's different? so we're building the technology that goes from the sensors in a vehicle to creating a 3d prospective of what's around us, the objects, the scene and then predicting what happens next and then controlling the vehicle. so all the software that goesin vehicle. so all the software that goes in the car, the firstjob we're doing is building the technology. i guess how it's different is that
we're assembling talent that exists in europe to tackle those problems. in european cities are very, very different to american cities so the technology that your google or uber might develop for the us is simply not going to work here in europe and so we are going technology that learns about the activities and objects and behaviours that we see here in europe. so you're building that tech that will enable a car to be driverless, not bang into anything or anyone and get us from a to b, but you won't licence the tech to b, but you won't licence the tech to car makers, are you? no, that's right. what we're going to do, we're going to build the technology and we're going to build the service to the consumer so the service model is we pick people up and drop them off across our cities and we charge them across our cities and we charge them a fare for thatting. doing that. what this means is that the vehicles we use will buy those vehicles from
vehicle manufacturers and we will have them assembled with the sensors and the technology in them. already you have raised quite a bit of money. we said there $27 million, but it is more now. it is more since we've created those figures for our graphics. you need to raise a lot more. how are you convincing people to invest in fiveai when there are other, much bigger, more high—profile competitors out there that could attract the funding instead and the interest instead? 0ne instead and the interest instead? one of the things that is needed, it is such a hard problem, the problem we're trying to solve is hard. so us companies are really struggling to solve this problem as well. so nobody has got a safe urban driving capability in any city in the world today so we are not very different today so we are not very different to any us company. but what it comes down to talent. can we find and assemble the talent and europe has a huge amount of talent really. so by doing this, in a kind of start—up model in europe, we can attract that
talent. how do you attract that talent. how do you attract that talent when google, apple, facebook are offering a lot and amazing bright future? we offer similar. all the top talent is joining tech companies. it's not actuallyjoining the auto motive sector. so in the long—term tech companies win and in the connection of which tech companies it is more fun to do it in a start—up company where we can offer people real shares and equity ownership of a company and we found giving people a share of the company actually tackling the problem that's close to home is a superattractive option for people to come and join. you are talking about the fact that getting them out on the roads is the next big step. do you see a potential for them to work alongside human driven vehicles or do you think it has to be either all of one or the other? no, it has got to be mixed. it will be a long time before
we can have our streets with fully autonomous orfully we can have our streets with fully autonomous or fully self driving vehicles so we have to operate in a mixed environment really where our vehicles are vournded by cyclists, feds, cars, vans, trucks, and everything and we will have to predict what the other road users are going to. otherwise our cars end up are going to. otherwise our cars end up stopping all over the city if we can't predict what's going to happen next. computers tend to make decisions based on logic, humans not necessarily. you are hoping to have ten cars on the road in london in 2019. that's phase one. at that stage our company is 200 people and then after that, we build a service that we will offer to consumers. we will keep an eye on you, fiveai. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us.
stay up—to—date with all the day's business news as it happens on the bbc‘s business live page. there is insight and analysis from our team of editors right around the globe and we want to hear from you too. get involved on the bbc‘s business live web page at bbc.com/business. on twitter, we're at bbc business. and you can find us on facebook at bbc money. business live on tv and online, what you need to know, when you need to know. david is back from hsbc. david, another story that's interesting. five finance ministers from across europe including philip hammond of the uk, putting together a letter sent to the us treasury secretary sort of basically saying your tax reform ideas could breach the international trade rules. interesting scenario, isn't it? a pan—european approach? interesting scenario, isn't it? a pan-european approach? yeah, it is a pan—european approach and they are
saying this is the counterbalance of the america first approach that they say the us has taken. every country has sovereignty over its tax. they are saying they are acting unfairly and the us and the us is changing international trade. you know, when the berlin wall came down in 1989 we we re the berlin wall came down in 1989 we were going to have the superb open world and we are heading for the tpp and all that's changed now. the trans—pacific and all that's changed now. the tra ns—pacific partnership and all that's changed now. the trans—pacific partnership in asia. yes. sorry. it isjust interesting as you say how we've got this kind of europe—wide approach and yet it is unlikely that the us, well the trump administration will listen or even change their tax reform ideas which is being grappled with in their own political framework? well, this is a major piece of legislation and we are looking for another rate rise by the fed and the us economy should do very well. but it does
raise some question marx and it does raise some question marx and it does raise question marx about open trade in the world and we have seen that with brexit. we have gone our own way so we can't really complain too much, but some countries are preferring that and the us says eve ryo ne preferring that and the us says everyone is running, we are running a huge current account deficit and it is unfairand a huge current account deficit and it is unfair and people are cheating and we need to change things and it is belligerent and that's not the kind of story i want to read. i want to read about love and happiness, not new trade wars breaking out. the next time you come in, i expect to see you in your silly christmas jumper. that's what we need. that's it from business live today. it is always good to have your company. thanks for being with us. see you soon. good morning.
it has been a properly cold start to the day. widespread frost and ice this morning. the lowest temperature recorded this morning has been minus 13 celsius in shropshire. that's the lowest temperature the uk has seen since february 2016, but ice is going to be your biggest hazard especially where you have had some of the lying snow and on untreated roads and pavements really slippery surfaces a few fog patches this morning across the midlands, northern england, those should clear away. some sunshine it start off the day in eastern areas, but it will feel cold. temperatures about two or three celsius. where you have got the lying snow across the midlands and into north wales, temperatures may not get above freezing. rain into south—west england and west wales and it will be of rain. the cloud increasing in north western england, but in the north—east staying bright and sunny. some brightness towards the east of
scotland, but again in western areas of scotla nd scotland, but again in western areas of scotland and northern ireland, you will see the rain moving in and hill snow expected too. through this evening, you could see hill snow over the pennines before that rain clears away down towards the south east, but with all that cloud around tonight, the air coming in from the south—west won't be as cold as last night. temperatures in towns and cities staying above freezing. perhaps in the countryside, it will be below so there might be some frost and ice first thing tomorrow morning. during wednesday, we have got one weather system clearing away. another one starting to move in towards the north and the west and behind that, it turns colder. again. so throughout wednesday, you will see quite a bit of cloud. that rain spreading south and eastwards. it will be of rain, but later on in the day, some hill snow which could come down to lower levels by the evening on wednesday because the cold air is starting to filter back in. as that rain clears away to the south—east, across much of northern england, wales, the south—west, there will be sunshine and temperatures tomorrow about five to
nine celsius. as for thursday a lot of dry weather, bright weather, some rain across the far south, some rain moving in towards the west. again, hill snow over scotland. top temperatures about four to six celsius and then through thursday night and into friday, this weather front night and into friday, this weather fro nt m oves night and into friday, this weather front moves south, but look at the isobars, we can track them all the way to the arctic, turning colder as we go towards the end of the week. more details on the website. that's all from me though. bye—bye. hello it's tuesday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. our top story — about half a million children and young people — some as young as 11 — gamble every week, a gambling commission report claims today. everywhere people are talking about how much money they have lost on gambling sites. he ended up losing
about 1200 of it. i know someone aged ten and who has lost about £2000. the report highlights what's known as "skins gambling" — which lets players gamble with virtual items like currency and then swap them for money. we'll explain what it is before 10am. also on the programme, an insight into life of a male sex workers in britain — the unheard voices of the sex industry.