Skip to main content

tv   World Business Report  BBC News  January 3, 2017 5:30am-5:46am GMT

5:30 am
this is bbc world news, the headlines: turkish security officials believe they're close to identifying the suspect who killed 39 people at a new year party in a nightclub in istanbul. the extremist group that calls itself islamic state says it was behind the shootings. america's incoming president has rejected north korean claims of developing a nuclear missile capable of reaching the us. in a tweet, donald trump dismissed a boast from north korea's leader kim jong—un that preparations had reached the final stage. so—called islamic state fighters also claim they carried out a series of car bombings in the iraqi capital baghdad. the most deadly hit a busy square in the eastern shia district of sadr city. at least 35 people were killed. brazilian officials say 56 inmates have been killed in a prison riot. the fighting broke out between rival drug gangs at the jail in manaus in the north of the country. a number of inmates who escaped have been recaptured. now for the latest financial news
5:31 am
with sally and world business report. a record number of uk oil and gas companies went bust in 2016 but could this be the year the price of the black stuff bounces back? ringing the bell for 2017. where should you put your money this year? and will economists or fortune tellers have the upper hand on predictions? welcome to world business report. i'm sally bundock. also in the programme, live in singapore to hear how the city state's economy is faring and you may be surprised. but first: the number of uk oil and gas
5:32 am
companies going bust has reached an all—time high following the slump in prices of crude. that's according to accountancy firm moore stephens who say a total of 16 businesses became insolvent last year, an eight fold increase on 2015. despite the recent increase in the price of the black stuff, atjust under $60 a barrel it's stilljust over half what it was in the summer of 2014. that price point has hit the industry hard and the new year marked the start of the first global pact to cut oil production in 15 years. from january 1, members of 0pec along with other oil—producing countries slashed crude output by nearly 1.8 million barrels a day. so could this be a year of recovery for the industry? with me now is amrita sen, chief 0il analyst, energy aspects. happy new year to you. it is good to
5:33 am
see you. what will we see this year, do you think? we mentioned that opec and do you think? we mentioned that 0pec and non— 0pec members are supposedly following through on their promises are what impact will that have? prices should climb back gradually. it will be slow because there is still a lot of infantry but the global agreement should see... compliance will be sketchy but about one million barrels a day will be taken off the market so that should help run the stores down. when you talk about compliance, i know that opec talk about compliance, i know that 0pec were at pains to say they will believe that and be sure that their members follow through on their commitment, as it were. can we expect more this time? they are planning to have a meeting to assess how it is going. the core countries, the uae, kuwait, saudi arabia, they have always been compliant. i do not expect any form of cheating from
5:34 am
them. iraq, ithink, will be expect any form of cheating from them. iraq, i think, will be tricky because they need the money to fight isis and i do not expect any compliance from them. the rest, what works in favour of 0pec, is because of years of underinvestment, decline rates accelerating so by default they will be complying. this time last year we were looking at oil around $40 a barrel and there was a massive fall early on in 2016 because of what was going on in china. as we have mentioned, many companies going bust, the smaller energy companies. will we see more of that this year? i think the worst is behind us. in terms of companies struggling. that does not mean they will turn into profits overnight because again we do not expect oil prices to go much beyond 60 or $65 in the first half of the year. perhaps in the back end of the year but it will take a while. i think
5:35 am
companies have cut costs but we are seeing a couple of years of severe cuts and the effects of that is that it will come through in prices. and what will trump administration mean, do you think? it is quite difficult to assess his impact, isn't it, in terms of the energy industry in the us, for example. it is difficult. he is pro— oil and gas drilling but a lot of regulation is that the state level rather than the federal level. can he make a big difference? his foreign policy will be the interesting one to watch out for and could have an effect on global demand. 0n the flip side he could tearup demand. 0n the flip side he could tear up the demand. 0n the flip side he could tearup the iran demand. 0n the flip side he could tear up the iran nuclear deal which could be positive for oil prices. a lot of uncertainty there. lovely to see you and we will see you again $0011. see you and we will see you again soon. we will make sure she keeps us across how well is doing this year. annualised economic growth of 9.1% — that sounds pretty impressive doesn't it! well that is how singapore's economy
5:36 am
performed in the fourth quarter of 2016 and that is much better than expected. so why did it do so well? sharanjit leyljoins me now from singapore with the latest. shara njit, you have shopped like never before! now it is not my shopping habits, especially as i did most of my shopping overseas in the last two weeks or so. happy new year and good news for this city, singapore. a wet day behind me as you can see but it is one of the most export dependent nations in asia and its economy grew at its fastest pace in over three yea rs last at its fastest pace in over three years last quarter. that seemed to bea years last quarter. that seemed to be a very good gauge of the global economy. but there is not what another worrying side which i will mention that the headline numbers first, they showed that manufacturing, services were to be accredited. they grew, leading to
5:37 am
gdp rebounding that 9.1% you mentioned in the three months to december. bear in mind this is rising from a low base from the previous quarter when it declined where it was 1.9%. but, as i said, it is not all good news. the economy expanding at its lowest —— slowest pace since 2009. of course, we know that global growth is coming under pressure. the us is threatening to turn protectionist under donald trump and the outlook remains a fairly murky. the prime minister himself has said in his new year message that overall singapore is not doing that badly, considering the global economic uncertainty. he did maintain that the labour market has eased unemployment remained low and the city is still creating jobs. a warning this year that anti— globalisation antitrade sentiment could dampen already very weak global trade conditions. having said
5:38 am
that, however, the two factors contributed to the growth this time around, the service industry which is about two thirds of the economy. they rose 94% after the previous three months. manufacturing jumping an annualised 14. 6%. three months. manufacturing jumping an annualised14.6%. for the moment these are fairly enviable numbers. thank you very much good to see you. 0ne thank you very much good to see you. one of the most used words of the yearin one of the most used words of the year in 2016 was surreal. we had the british vote to leave the european union and donald trump won the white house against all odds. so what's in store in 2017? we hear what a longtime economist and a traditional fortune—teller are predicting for the year ahead. it is that time of year when many asians head to the temples to pray for good luck and figure out what is in the yearahead. for good luck and figure out what is in the year ahead. neither financial forecasters nor fortune tellers accurately predicted what happened in 2016. so if everyone is getting,
5:39 am
who is to say what will happen in 2017. this area is filled with fortune tellers and numerology is andi fortune tellers and numerology is and i am here to meet one of them. master alex so. as well as an economist at a private bank to find out. so, the us and china. what sort of relationship will they have in 2017? it will be interesting to say the least. the two largest economies in the world. you are looking, you know, china who is sending in terms of playing a larger role in global politics in global trade so how it will play out really will depend on how mrtrump is will play out really will depend on how mr trump is going to deal with some of his contentious campaign pledges, especially targeted towards china. next year as the fire rooster. from the word fire we will have a lot of problem going on and you will find that there will be a
5:40 am
lot of problems. it will be a hiccup between the us and china sol lot of problems. it will be a hiccup between the us and china so i think donald trump has two try to make it work. how about growth? what will that be next year? the driver of growth next year will be the recovery in consumer demand on the back of a recovery in jobs. that could translate into investment recovery, perhaps of a later leg towards the end of the year. 20141516. next year is considered the last year of a five—year change. so, basically, on the first of you will see something. what is the big surprise of 2017? what we need to be mindful of is coming from popular push back of antiestablishment itself. rooster is never a good year. it is a year that has a lot of trouble between family, between
5:41 am
companies even between couples. that does not bode particularly well for any of us. i think it is time for me to get my fortune taken for 2017. take master alex. she is a brave woman. that is all from us. we will see you again soon. sally will return in a moment with a look through the international newspapers. time now to tell you that many children in england are reading half the recommended daily sugar intake before they even get to school, say health officials. at a time of spiralling obesity levels have launched a campaign to help pa rents have launched a campaign to help parents better understand what their child is eating. it is breakfast is the most important meal of the day. millions of children consume over half their daily sugar allowance before they even get to school. but
5:42 am
a new campaign is aiming to curb that sugar rush. many parents will think their breakfast cereals are healthy that they are buying to their children and they are surprised when they find out how much sugar is in them. there are better, low sugar alternative brea kfasts better, low sugar alternative breakfasts on the market that we would be encouraging parents to have a look at. think about buying those of their children. public health england has launched an app to scan a barcode and it will tell you how much sugar, salt and fat is in that food. the results, they may be surprising and that is the idea. to help parents make healthier choices. the average child in england has the equivalent of three cubes of sugar every morning for breakfast. the recommended daily maximum amount for children aged four to six years old is five cubes and 47—10—year—olds, six cubes. by the end of the day, the average child consumes three
5:43 am
times more than the daily recommended amount, up to 18 cubes of sugar. with one in five children now starting prime risk will overweight or obese, perhaps now, more than ever, breakfast really is the most important meal more on that at six o'clock brea kfast more on that at six o'clock breakfast with dan walker and louise mentioned. they will have far more of the days news business and sport and they will be looking at the cost of commuting as let's have a look at our main story is the sale. turkish authorities say they are close to identifying the suspect who killed 39 people at a nightclub in istanbul. the us president—elect, donald trump has dismissed north korea's latest claim to be developing a missile capable of delivering a nuclear strike against the united states. in a tweet, mr trump said: "it won't happen." so—called islamic state fighters say
5:44 am
they carried out a series of car bombings in the iraqi capital baghdad. at least 35 people were killed. brazilian officials say 56 inmates have been killed in a prison riot. the fighting broke out between rival drug gangs at the jail in manaus in the north of the country. i have sadly back for you to look at their headlines from around the world. the main story again for many newspapers, including the independent, is the new year attack in turkey. this article says it was a "declaration of war" and quotes an isis defector, who says the syria conflict is spilling over. the so—called islamic state group has now claimed responsibility for the istanbul attack. the financial times takes a focus
5:45 am
on air bnb which is set to lose out big in london as it enforces its limit of 90—nights for its hosts. the move could see the company miss out on $400 million worth of bookings in london alone. in the south—china morning post, an article which looks at death and corruption in beijing's political system. the article states that more than 100 lawmakers have vacated their seats over the past four years due to death, corruption or vote—rigging scandals. indian politics feature on the front page of the gulf news after a court ruling which now prohibits politicians from using religion and caste to garner votes. the verdict will force political parties in india to change their strategy as religion and caste generally

131 Views

info Stream Only

Uploaded by TV Archive on