tv BBC Business Live BBC News August 7, 2017 8:30am-9:01am BST
this is business live from bbc news with ben thompson and sally bundock. prosecutors in south korea demand a twelve—year prison sentence for the heir to the samsung empire. that is our top story, live from london. before his arrest, jay y lee was gearing up to take over samsung. he's now accused of bribing the country's former president and could face more than a decade injail. we will have the details. also in the programme, turning off the taps with 50 dollar oil the new normal, are we in line for another cut in production? opec meets today. asian markets are rising strongly off the back of that
in good jobs news from the us. this is what europe is doing in the first half hour of trading. fuelling demand for more gas. we speak to the head of one of the world's oldest private exploration firms about keeping the lights on around the globe. and as new york based company wework annoucne a $500m expansion in asia — let us know what do you love or hate about your office. tweet using the hashtag bbcbizlive. they very warm welcome. a lot to get through, including things you like or maybe do not like about the state of your office with the news that wework is expanding.
prosecutors in south korea are demanding a twelve—year prison sentence for the heir to the samsung business empire. samsung covers all sorts of businesses, a conglomerate made up of different entities and is caught in the midst of a huge corruption allegation. hearing in lee jae—yong's trial, the prosecution said he was the ultimate beneficiary of the crimes. the corruption scandal brought down the country's former president. all sorts of details have emerged as pa rt all sorts of details have emerged as part of the trial. he denies wrongdoing. but of course the trial continues. sarah toms is in singapore with the latest. good to see you. the prosecutors deliberated most of today and came up deliberated most of today and came up with this 12 year prison
sentence. tell us more. south korean prosecutors have been wrapping up closing arguments in a lengthy trial. this is in the trial of samsun electronics and prosecutors seek a 12 yearjail term for the acting head, jay y lee. he and other samsung officials have been charged with offering more than $38 million to the president and her friend with offering more than $38 million to the president and herfriend in exchange for support of a merger between two samsung subsidiaries. the president was removed from office this year and is herself on trial. mrjay y lee denied bribery and embezzlement charges. the court ruling is not expected until late august. which is when his arrest warrant is finished. the trial, above all, has put the issue of
family control and big business under the spotlight. south korea's newly elected president promises to bring in measures that could weaken their power. that is the big question in terms of how this will play out on whether we will see jay y lee behind bars or not. previously in years gone by, those running samsun, they have been charged with various elements and we re charged with various elements and were pardoned in the past and that is kind of how it used to roll. that is right. it is a surprise it is 12 years. from what i understood, they were thinking it would be more like five years, depending on how many charges. itjust shows that like five years, depending on how many charges. it just shows that the government means business over this. the big companies with so much power. they want to sort of stop
this from happening, a repeat of this from happening, a repeat of this scandal, which basically has been on the headlines of every country in the world. sarah, thank you. so much to discuss as far as that story is concerned. south korea's society, and the relationship with government. another story we are watching. oil prices continuing to fall and opec is meeting. for most of us a lower oil price is a good thing. it keeps costs down. but for the countries that sell oil lower prices is a real headache. what can opec do, the 1a leading producers? they have been trying to
push up prices. today and tomorrow they're meeting in abu dhabi. amrita sen is chief oil analyst at the independent research firm energy aspects. we have talked about this a lot, can they raise prices, opec, and they hope to? i think the meeting is more about compliance, which has been slipping and some of the usual offenders, iraq... when you talk about compliance is whether countries are meeting the production levels. everybody talks about iraq not complying and wanting to raise production, some of the offenders on the list are like uae, they have a lwa ys the list are like uae, they have always been good about meeting targets. i think that is why opec wa nts to targets. i think that is why opec wants to say, let's come back together and see what we can do.“ you do not comply, what are the consequences? that is the problem, there is not something that will say you will be kicked out of opec, these are the costs, which is why
opec is tricky. if you can't, i a lwa ys opec is tricky. if you can't, i always have an incentive to not do as much is required because i hope prices will go up because of the result of your clock. the price of oil is not going up. i got back from houston last week and shale is definitely growing will grow strongly but i do not think shale is growing as much as more people feared. one of the things that came out was the gas to oil ratio is rising a lot. for every well you com plete rising a lot. for every well you complete you are getting more gas 110w complete you are getting more gas now than oil. some of that fear will probably subside. right now, demand is phenomenal at these prices and one of the things you are seeing is it isa one of the things you are seeing is it is a tighter market and the curves a re it is a tighter market and the curves are flattening. it didn't is
falling at a rate of1 million barrels per day so it is happening. —— inventory is. barrels per day so it is happening. -- inventory is. that is why they cannot catch up. and the disparity between the watch country needs what prices to do with budget, where they will balance the budget. the list is long and in venezuela, they need $120. saudi arabia probably find that 60s and 70s. we probably should not have double standards because in the west we do not balance our budget, so why should they have to balance the budget? what is important they are running through the foreign currency reserves which they need to replenish. they are packed to the dollar and need revenues. they will be fine, some of the gcc countries, not venezuela and iraq. thanks for your perspective. don't hold your breath for any big
announcements from opec but if there are, we will let you know. we have the debate on prices but they wanted as high as possible, so it makes them the most money. keep it simple with ben thompson! let's take a look at some of the other stories making the news: one of the world's largest providers of shared working space, wework, says it will invest $500m to expand in southeast asia and south korea. the new york based firm is one of a growing number that provide flexible working spaces and offices used by freelancers, startu ps and entrepreneurs. that is the twitter question, get in touch about your work environment. staff at google have been caught up in a row about the company's gender diversity initiatives. it started when a male software engineer wrote that the firm needs to "stop assuming that gender gaps imply sexism". many of his colleagues have been critical of the statement but others say they support him. google's head of diversity said diversity and inclusion are very important to the company.
south korea says north korea has rejected an offer to talk — to calm tensions over its nuclear programme. this weekend, the un security council passed a resolution banning north korean exports and limiting investments in the country. within the last hour, north korea has criticised the blockade and vowed to take what it calls "righteous action". let's look at the numbers. shares in asia were higher at the start of the week — after those strong jobs numbers in the us. that's provided some relief for investors over the outlook for the world's largest economy. why? well, the dollarjumped to a one year high against the yen, that, in turn, boosted the nikkei. in europe it's a quiet day for corporate earnings and economic data — with holidays across the continent. if you're not on holiday we'll talk more about all you need to know — in a moment, but first samira hussain has the details about what's ahead on wall street.
earnings continue this week with media companies like time, news corp and tribune all reporting. on thursday we will hear from snap. that's the parent company to the social media app, snapchat and they will be reporting earnings. now since the company went public in march of this year, its share price has hit some all time lows. investors are worried about the company's ability to continue to grow its user base and still make money. but first, on monday, the world's biggest hotel chain, marriott, will be reporting. it seems more travel is happening in the us, its biggest market, and that will help lift the compa ny‘s earnings. marriott, like its hotel industry peers, is really benefiting from an improved business sentiment following donald trump's election as president in november. we have a familiar face with us. joining us is jessica ground from schroders. give us your take on this week, a
funny time of year and yet there seems to be quite a bit going on with markets bubbling up. valuations are high. the data is showing a sustained although not dramatic global economic recovery. volatility is low. we know when we look at past summers when everything like this looks fantastic, things can come to disrupt. people are feeling more relaxed. it does not mean you cannot have strange events. what could disrupt? geopolitical is probably the one most likely. we have been talking about tensions with north korea. the middle east. opec and all prices will be another area to watch. both brexit and the trump.
people have learned to live with uncertainty on that. we are at the point where markets are pumped up, will they stay there until people come back in september? what we have heard is a narrow leadership of the market with tech companies on stretched valuations. other parts of the market look less stretch. the thing that has happened this summer is it feels like rate rises are kicked into the long grass, further into the future, and that is important because with interest rates low, it gives room for equity markets to move up high. i would not say everybody will come back in september and panic, buti say everybody will come back in september and panic, but i think companies with high valuations will have to justify them with great. lovely to see you. still lots more to come. the business of birth. we take a look at the cost of delivery around the world, starting in turkey which has the highest rate of
c—sections in the world. you're with business live from bbc news. britons could obtain more control over what happens to personal information under new government proposals later today. people will be able to ask for personal data, or information posted when they were children, to be deleted. theo leggett is in our business newsroom. this is fascinating, the idea that adults could complain about what was posted when they were children. it shows the internet age coming of age. because the data protection rules have not kept up with development of technology. this bill is based on the eu's data protection regulations that comes into force next year and coming into force quickly and the uk bill will make sure the same rules stay in place
after we leave the eu probably in 2019. the point is, the data protection regulations at the moment we re protection regulations at the moment were designed in the days before a company could gain information on who you are, where you live, what shopping you like, what places you visit, because you carry a mobile phone and they can store information and use it for marketing purposes. these proposals are designed to give people a certain amount of control back, such as people who posted things as children will be able to ask for that to be deleted and will have to give explicit consent to giving away information. at the moment it is often a tick box at the foot of a website or pages of terms and conditions and people do not really know what they are signing up to and the idea with this is people will have to give clear consent to data being used and people collecting it will have to say why they are collecting it. our company
is prepared? some of them are, business groups say companies are starting to get used to the idea but many are not used to it and since the first stage, the eu regulation comes into force next year, they will have to hurry up. because this regulation gives the information commissioner's office figure teeth, and they will be able to fine up to £20 million or 4% of a company's turnover, which ever is the greatest and at the moment the biggest fine is £500,000. it is a big change and penalties are harsh. a story about pre—payment energy price cap will be tightened according to ofgem. all the details are on the business live page. you're watching business live. our top story: posecutors in south korea are demanding
a 12 year prison sentence for the heir to the samsung business empire, lee jae—yong. this case has been rumbling for a long time, but 12 years is what the prosecution are calling for. a quick look at how markets are faring. in europe we have been going for 15 minutes. higher. perhaps markets taking a breather following a couple of weeks of so much news in terms of earnings news from companies all over the world. so, a chance tojust ta ke over the world. so, a chance tojust take stock now. the markets are having their summer holidays, i think, the markets are having their summer holidays, ithink, not the markets are having their summer holidays, i think, not us, the markets are having their summer holidays, ithink, not us, we're still here. now, we talk a lot about oil. its highs and its lows, but what about gas? well, one of the world's oldest private gas and oil exploration firms in the middle east is crescent petroleum. it was set—up in 1971 in the united arab emirates. while its first wells were for oil, it was an early adopter of natural gas, signing its first gas supply contract in 1985. its total output now exceeds 125,000
barrels of oil equivalent per day and it's looking to expand into both north africa and iraq. its gas deliveries help to provide electricity forfour million people in northern iraq. majid jafar is the chief executive of crescent petroleum, he's with us now. welcome to business live. nice to see you. now, you've met before, haven't you? i have, when i was based out in dubai with our other programme middle east business report. we talked at the time about this push elsewhere because everyone imagines the gulf as the place of oil and gas, but it is not only about exploring and extract, but it is making it useful. expansion into north africa and parts of iraq and iraq is the one that's got the oil and gas itself, but the difficulty and gas itself, but the difficulty and clearly after the war is getting it out of the ground. it is investment in infrastructure. how do you play a part in that? so as
companies from the region, we take a different look at the risks. we take a long—term view and we try and different ate ourselves on understanding what the real local market needs are and trying to address them rather than focussing on export and by being nimble and partnering well with companies from the outside and delivering on projects cost effectively and time, which is key, and our region as a whole has half the world's oil and gas, but less than a third of the world's oil production and less than a sixth of the world's gas production so we're punching way below our weight. you talk about the region. it was described to me once that uae is a real safe street in a really dodgy neighbourhood. when you talk about that long—term view of investment, how do you do it in a region that is notoriously
unpredictable? our problems aren't below the ground. we have the lowest cost of production above the ground. you mentioned budget issues, but we have got in some countries wars, instability, payment issues or respect for contract, fiscal terms and then overall policy. there are many countries in the region where there is a national oil company with a monopoly and little room for the private sector, but that's starting to change now. something else as well that you really want to see change is social and economic development within the arab world as it were and you're doing a lot of work with young people in particular and the issue of youth unemployment which is the highest in the region, isn't it, worldwide? our biggest natural res source is our young population, not the oil and gas. oil and gas employs less and less because it is becoming more and more hi—tech. we need to create 100 millionjobs over the next hi—tech. we need to create 100 million jobs over the next two decades across the middle east and
north africa. we have 30% as an average youth unemployment and we need more private sector investment and education and skills that match the needs of the private sector because the governments can't keep employing the young people anymore. female empowerment, you have got two daughters aged one and three and that's something you want to see a shift in? it is critical as a moral and social issue if we have got the lowest female in parliament. that leads to higher birth rates which means we can't catch up with the employment issue. you have just sort of intertwined nearly everything we've talked about in our programme today. thank you for coming in. we'd love to talk to you for longer, but we haven't got the time in this programme. so many issues. this week we're looking at the business of birth and today we start in turkey. around the globe, caesarean section rates have increased dramatically, even as a large amount of them are not medically required. whilst the average rate is 28%
amongst oecd countries, in turkey more than half of babies are born by c—section. selin girit takes a look at why. at this hospital, eight babies are born today. five of them by caesarean sections. c—sections are rather popular in turkey. over 50% of babies are born not by natural birth, but by these operations. that rate is the highest amongst oecd countries. but why do so many expecting mothers go through these operations? is it by choice or necessity? the increase in c—sections are due to the rise in first births among older women and multiple births resulting from the ivf treatment, treatment, but all of these caesarea ns medically justified ? five years ago, turkey adopted a law making it the first country to punish elective caesarean
sections, but it has one of the highest rates of c—section among developed economies. doctors say the reason for that are many, but that it is not about money. we don't earn more than when we do c—section as a cln i, as a doctor. the hospitals, yes, maybe, of course. but they don't push the doctors. most turkish women these days hope to give birth naturally, but of course, things don't always go according to plan. we will have more reports from around the world in our business of birth series. dominic o'connell joined us. good morning by the way. there will be all sorts of articles marking the tenth anniversary of the credit crisis. ten years? ten yearsment people put it down to the
failure of two hedge funds that were run bya failure of two hedge funds that were run by a french bank, but you could really actually put it down to any number of dates in 2007 and in january and february, hsbc warned about lending in the us from its household division and then injune, a bank closed two hedge funds. that could be another anniversary date the all the articles say, there were loads of warning signs, we knew it was comingment nobody did. very few people, lots of people thought there we re people, lots of people thought there were problems with individual institutions and individual funds, but not many people, some people did, but not many people said the system is on the vrge of collapse. so ten years on and we've had results from lloyds and from rbs and others from barclays and hsbc, it is so interesting when you see they are still paying the price? particularly in the case of rbs and lloyds, still paying for payment prosteks and libor. rbs have got a giant fine to come from the us authorities in its
role in packaging up the loans for the us housing scandal. ten years on, the reckoning is still to come. how important to you is your work environment? very important actually. the reason i get up every morning! but we're talking about a service offered to office workers. is it service offered to office workers. isita service offered to office workers. is it a new version of regis? it is very trendy. it is very of the moment. all right. let's talk about what you think about this. conrad, "i love the modern glass offices like mine are so light." i can't say we have the same experience. another viewer says, "i hate people eating their smelly lunch at their desk. it's disgusting." have a really good. see you soon. bye—bye. hi there. good morning. fur‘ looking
for some hot summery weather, then u nfortu nately for some hot summery weather, then unfortunately this forecast isn't going to give that to you because it will stay unsettled. there will be further rain at times and while temperatures about the average for the time of year, it will feel quite cool and breezy from time to time. last night we had heavy rain, 110 millimetres of rain falling in north—west england, north wales, north—east england as well. most of that rain starting to fizzle out as it moves south and eastwards of the it moves south and eastwards of the it is associated with this cold front which will continue to bring outbreaks of rain this afternoon across southern areas after some early morning brightness in the far south—east, but further north and west, the skies will brighten up a little bit. there will be sunny spells and scattered showers across scotland. some of those showers could be on the heavy side. one or two showers in the far north—west of epg. a good deal of dry weather with sunshine in northern england and north wales. a few scattered showers across northern ireland. but across
south wales, south—west england, the midlands and eastern and south—east england this afternoon is looking cloudy. patchy rain from time to time. during this evening the rain could turn heavy across southern areas. some pulses of heavy rain mixed in. temperatures about 111, 15, 16 celsius. it could be chilly across scotland and northern ireland. temperatures about ten to 12 celsius. but we've got that cold front which is still with us. an area of low pressure coming out of the near continent. that's going complicate things as will this weather front here moving complicate things as will this weatherfront here moving into complicate things as will this weather front here moving into the north—west. so quite a complicated mixture on tuesday. generally speaking lots of cloud really across england and wales. outbreaks of rain. some of which will be heavy. particularly across the south east with thundery rain. a brisk north easterly wind as well making it feel chilly along the coasts, but for scotla nd chilly along the coasts, but for scotland and northern ireland tomorrow, again, mostly dry. one or two showers around and temperatures
in the high teens. on to wednesday, again some heavy rain for a time across the far south—east of england. otherwise it will start to dry out a little bit. there will be brighter weather across the northern and western parts and the process will continue on thursday. a dry day. temperatures 1 to 21. by friday, we will see more rain moving in from the west. there is dry weather in the forecast, but also some rain. take a look on the website. that's it from me. bye—bye. good morning. monday, i'm victoria derbyshire. the top story, a british model allegedly kidnapped and held in milanforsix model allegedly kidnapped and held in milan for six days has spoken about her experience. police in italy say 20—year—old chloe ayling was abducted and drugs before attem pts was abducted and drugs before attempts were made to sell her in an online auction. translation: he is dangerous because
the victim was dropped. as soon as she was kidnapped, let's say she was injected with ketamine. also on the programme — we can reveal that 32 children between the ages of 3 and 5 were referred to the nhs last year because they're unhappy with the gender. we've been following lily and jessica — two of the uk's youngest