tv BBC Business Live BBC News July 1, 2019 8:30am-9:01am BST
this is business live from bbc news with samantha simmonds and ben bland. the oil cartel opec moves towards extending production cuts at a meeting in vienna — but the big question is for how long? live from london, that's our top story on monday the 1st ofjuly. iran joins saudi arabia, iraq and russia in saying it will approve plans to try and boost the price of oil — we'll be finding out what it means for you. also in the programme... businesses in hong kong count the cost of a day of disruption — as protesters fill the streets over a controversial extradition law.
the markets in positive territory in europe after that good news off the back of the 620 summit between the us and china. and cashing in on the multi—trillion—dollar global education market — we'll be talking to one firm that works to get students into top universities in the us and uk. $90 — that's how much people here in the uk splash out on average on a night out. today we want to know how much you spend when going out on the town. let us know — just use the hashtag bbcbizlive. hello and welcome to business live. 6lobal oil prices have surged after iranjoined top producers — including saudi arabia, iraq and russia — in saying it would support extending supply cuts in a bid to push up prices. the oil cartel 0pec is meeting in vienna today to make a final decison.
it's expected 0pec will roll over supply cuts of more than1 million barrels per day until the end of the year. the ongoing trade war between the world's two biggest economies — the us and china — has held back brent crude prices in recent months. that's because fears over ongoing tariffs will damage global growth, reducing demand for the commodity. that's been counterbalanced by tensions between iran and the us, which have heightened fears of supply disruptions in the middle east. 0ilfrom iran is now at a trickle after us sanctions were put into place. with us now is hamish clegg, director at the uk—based boutique investment bank, hannam & partners. if you look at the price of oil today, the planned 0pec production cuts seem to have the desired effect. absolutely, they are price has rallied a small amount early
this morning and it is about maintaining equilibrium for the cartel. we saw russia and saudi arabia meet at the weekend in advance of the 0pec meeting so clearly a lot of weight but on what the russians and saudi arabians can agree ahead of the wider group. you have this counter pressure on the price of oil and concerns about global trade because of the trade wa i’s global trade because of the trade wars between the biggest economies, us and china, and the price feeling downward pressure because of concerns about demand potentially being hit. you often see that and it is particularly reflected so that the outlook in terms of where traders position themselves ahead of potential changes in demand. this is not short—term impacts right now because we are not seeing the demand effects taking place as of now,
however, it is something the futures markets that is largely the speculators will place bets on. in anticipation of that. in terms of the effect on businesses and individuals, it is a sharp spike. up about 2.5%, the price of a barrel. how much does it filter through and people feel the effects? it varies country by country but specifically to the uk, almost three quarters of the price we pay at the pump is effectively a tax. a 2% move in the underlying oil price has less effect on you and i putting oil on cars but the hauliers, airlines, they will feel it more, depending on how big they are and the ability to hedge. some of the larger companies hedge and lock in prices so short—term fluctuations have less of an impact but on real businesses, if it happens on a sustained basis, we
could see inflation creeping in and we all feel that. what do you think people will look for next as the main factor after the 0pec meeting in terms of a bearing on price? focus will return to some shorter term demand drivers, particularly over the summer. it is known as driving season. we drive on holiday, some of us drive to wales, in america it is a little easier but for those of us going on holiday, peak season for demand. the reader ci’oss peak season for demand. the reader cross will be what happens to global levels during the peak season to see where demand is but for now, 0pec underpinned their view on what is happening with supply for at least the next six months. thank you. let's take a look at some of the other stories making the news. swiss shares are set to be blocked from trading on eu exchanges today following a as a result of a diplomatic spat.
in a heated row over a stalled partnership treaty, switzerland said on thursday that it would trigger retaliatory measures against the european union forforbidding access to its stock markets. almost 300 shares in swiss firms will be affected. the us and china have agreed to resume talks over their trade dispute. announcing the agreement at the 620 summit injapan, president trump said he would allow american companies to continue to sell to the chinese tech giant huawei. but the president's economic adviser later clarified the decision — saying the most sensitive equipment off limits. the uk's network rail is looking to buy part of british steel, as bidders have until the end of sunday to put in offers for all or part of the troubled firm. the railway infrastructure company has bid for british steel's rail services business. state—owned network rail wants to take over the division responsible for the welding, finishing and storing of rails for the uk's train network.
protesters in hong kong have clashed with police on the 22nd anniversary of the former british colony's return to chinese rule. police have used pepper spray and batons to contain demonstrators gathering outside hong kong's legislative council building. in recent weeks, millions have marched against a contraversial marched against a controversial extradition bill that would allow people to be sent to china for trial. the bill has been suspended, but large numbers of people are expected to join an annual pro—democracy demonstration later,
i will correspond and is on the streets. how are things looking? —— my our correspondence is on the streets. there are hundreds of protesters who have camped out on this main arterial road in hong kong throughout the morning where there have been altercations between police and protesters and a group of protesters tried to break into the legislative council building and we re legislative council building and were pushed back by police and police unfurled their black flag, which is a warning they will fire pepper spray and will use violent means to get rid of them. we understand from people we have spoken to that they have been sprayed with pepper spray. you can feel it in the air, our skin has been tingling because of it. underneath this is the controversy surrounding the extradition bill that has been suspended but for many protesters, that is not enough. they
wa nt protesters, that is not enough. they want it withdrawn and they want the hong kong chief executive carrie lam to resign and they want, more than anything else, what i felt from the sense of people is a feeling of unease that hong kong is increasingly influenced by china and for many people here means their economic prospects are affected. thank you. the resumption of trade talks between the world's two largest economies has cheered shares in asia as the second half of the year gets under way. the nikkei hitting a two—month high. hong kong's hang seng is closed for the public holiday. despite this upturn a series of predominantly downbeat business surveys and official indicators released today showed activity shrank in most asian countries injune.
here in europe, all reacting to positive news coming from the talks between the president of the us and china. carmakers should also get a solid boost from the trade relief, along with other sectors sensitive to global growth and china such as miners. and samira has the details of what's ahead on wall street today. financial markets and more specifically oil markets will really be looking at the 0pec meeting taking place in vienna. but closer to home there will still be economic numbers to digest. the institute for supply management will report the manufacturing activity index. this is a widely watched measure of us economic activity. specifically, it looks at the change in production levels from month to month. also released on monday, the latest construction spending numbers. after a flat reading in april, analysts are expecting to see an increase in spending by about 0.2%. joining us is fiona cincotta,
senior market analyst, city index. we will go through some of the markets in detail. we will start with the asian markets that picked up with the asian markets that picked up because of news at the weekend that there was positive news coming out of the trade war, but the trade war is not over so interesting to see what happens. this is a ceasefire if you like. they have reached a trade truce which the markets that hope that the us and china would achieve at the bilateral meeting at the 620. there has been a massive focus for markets because we saw a downturn in the global economy amid these tensions so risk sentiment is increased this morning. there is a risk appetite in the marketplace. lifting share prices this morning. and we have seen gold falling, and flows into safe havens have been reduced with the japanese
yen, another traditional safe haven is also trading lower. as one trade war reaches a truce and fires up on this one perhaps unexpectedly between the eu and switzerland. that's right. this is to do with the equivalence of rules. it is no coincidence perhaps it happens around the time brexit is looming. what has happened is the swiss regulators have not been able to agree with the eu the equivalence rules and the swiss regulators put a ban on eu banks and traders trading swiss stock. this is uncharted territory. we are not sure how it will kick off when the swiss market opens at 9am. we will be looking for problems with liquidity. also difference in prices and when the trades are going to be re—routed —— where they will be re—routed. trades are going to be re—routed —— where they will be re-routed. thank you. still to come...
cashing in on the multi—trillion dollar global education market — we'll be talking to one firm which works to get students into top universities in the us and uk. you're with business live from bbc news. british steel's future hangs in the balance as the official receiver mulls over around ten offers for all or part of the troubled business. but the future might not be immediately clear, as it appears the receiver may accept further potential offers beyond the sunday deadline. joining us now is 6areth stace, general director, uk steel — the trade association that represents all of the uk producers of steel. what is the steel industry hoping for? the best case scenario is we have an investor that is looking to buy the whole business, looking to invest for the long—term and make that investment that is needed for
the site. that is the best case scenario and i am positive today there has been significant and positive interest from those potential buyers. what do you think would make it viable for a buyer to make a success of it in the way the previous owners were not able to? the steel sector is cyclical. prices for steel are low at the moment and raw materials high. crucially, if we do not want to be in the same position in three years, what we need to see is government making sure we have the best business competitive landscape in the uk for investors which means making sure we do not pay as we do at the moment 44 electricity than competitors in france and germany. with that increased unilateral cost we pay, competitors do not pay, we cannot
invest and the steel sector is a capital intensive business. we need to be investing are not weaving our money away to government in taxes. steel price and all—time low and raw materials cost at an all—time high. whoever takes over will have to deal with that. prices are set for the global steel sector and they are all in the same boat. we are looking for a level playing field so we can compete and sell products that british steel make and customers wa nt british steel make and customers want around the world. thank you. you can see on you can see on our web page, you can see on our web page, details ofa you can see on our web page, details of a change in how customers can switch providers.
your‘re watching business live — our top story — global oil prices have surged after iran joined top producers — including saudi arabia, iraq and russia — in saying it would support extending supply cuts in a bid to push up prices. 6oing going back to live pictures from hong kong. demonstrators out on the 22nd anniversary of the former british colony's return to chinese rule. police have used pepper spray and batons to contain demonstrators gathering outside hong kong's legislative council building. in recent weeks, millions have marched against a contraversial marched against a controversial extradition bill that would allow people to be sent to china for trial. the bill has been suspended, but large numbers of people are expected to join an annual pro—democracy demonstration later, demanding the resignation of hong kong's leader carrie lam, and the total withdrawal
of the extradition bill. now nothing can actually guarantee you a good job. but having a degree from a leading university can sometimes help swing the balance in your favour. in the current competitive climate, getting good grades is essential to secure a place at top universities around the world. and if you are lucky enough to have a privcate tutor, this can really help. uk—based a&j education is a service that provide tutors across many subjects to help students catch the attention of admissions officers. with me is sunnyjain, founder and chief executive, a&j education. what made you start up a firm like this when actually there are so many tutors and tutoring companies? that isa tutors and tutoring companies? that is a really good question. i still think about it today. i was studying at oxford and towards the end of my
first year, my father went bankrupt. effectively did not have money to pay to oxford and they told me you either have to pay for your education or leave. me and a friend tried a couple of different things. we had a club night that failed. we had a banks operation that failed and food delivery. education was an accidental business that did not succeed initially but also did not die. it went ten months and then exploded. there are a lot of private tutoring companies so what makes yours stand out? we are not really a tutoring company. we do tutoring but thatis tutoring company. we do tutoring but that is one of the three things so we do consulting, tutoring and profile building. consulting and tutoring is something a lot of firms do. where we stand out is in the profile building. a leading university like 0xford or harvard would have more than 20 people per
place would have more than 20 people per pla ce ofte n would have more than 20 people per place often and of them 80% have excellent grades and well—written essays so students stand out by having a profile that makes them competitive and shows universities they are interesting and have potential. i was reading about the cost. it is not cheap. how much on average for the service? our fees start at 2a,000. average for the service? our fees start at 24,000. that is so expensive, does it price a lot of people out? it would. i would say we are at the top edge of the market. there are a lot of companies out there, a lot of friends who work in there, a lot of friends who work in the sector, make a lot more money but build in scale. we have 40 families we look after. many have 1000, 2000. do you not have a situation where you give people an edge who can afford to buy it so in
some ways inequality becomes worse? definitely. fundamentally, if you remove the dressing, you help people who are wealthy to advance their privilege by helping their people to get the best education and that is something i was not entirely co mforta ble something i was not entirely comfortable with which is why we started and access scheme so we do the same thing but to uk citizens between 15 and 18 who are eligible for free school meals. how many people do you help? so, this year six. normally we have about ten per year. how much of a difference does it make. what is your success rate with people getting into top universities? it depends on the length of time we look after a student and the university they go for but an average success rate for university in america can be as low
as 5%. if you are with us for at least two years it averages out just over 80%. a big gamble. $24,000 it can cost. 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 business news as it happens on the bbc‘s snus live page. we want to from you. get involved on the web page... and on twitter. you can also find us on facebook. fiona cincotta from city indexjoins us again. what shall we start with with
stories in the media. david attenborough making a surprise appearance at glastonbury. not an expected headline. 6reat appearance at glastonbury. not an expected headline. great to have such an iconic figure there. really bringing home this message about plastic and the reduction of use in plastic and the reduction of use in plastic and the great thing about choosing him, he goes across generations. to have so many people paying attention to him is fabulous. this was about the reduction of the use of plastic at the festival. whenever people say using a plastic straw, trying not to, you think how much of a difference does it make, when you have huge events, where millions of products, 1 million plastic bottles of water. if an event likes —— might like this phase it out it sets it up for the rest of the world. we have seen those photos after 6lastonbury when it finishes and they show the masses of plastic
bottles, so it is a great precedent. and for different events following suit. hopefully others will use this as an example. another story is a night out. a survey found how much a night out. a survey found how much a night out. a survey found how much a night out costs. british people on average, $90, about £70 spent on a night out. it does vary. fiona, how much is a night out for you?” night out. it does vary. fiona, how much is a night out for you? i do not go out that often and funnily enough it came in at that figure, £70. it depends whether you are having dinner, drinks, where you are going. you will probably have more fun nights out than me and fiona eczema after work i went for a drink in the sun yesterday but spent very little because i got the other person to buy the drinks. at my old university, £10 for the night. that
was awhile ago, ito say! it does vary. some people keep the budget to £20, £30 and others refer to go fewer nights and go much bigger, go to a nice restaurant, maybe treat themselves to a cab home. exactly, that is a key point. how many times you go out is releva nt. how many times you go out is relevant. if you go out every night and spent £70, that is expensive. ian calvert says across the uk £70 seems low and in manchester, birmingham, that would double, may be treble, quadruple in london. we also had from dan who said we are living in a £10 world, the minimum cost for a beer, lunch, living in a £10 world, the minimum cost fora beer, lunch, orstepping outside your door. and tamara said she does not do nights out but two trains, to taxes
and two rounds came to just over £100. a reminder of events going on in hong kong with those huge protests still taking place. this is the legislative council where a large group of people have tried to smash their way into the building for the last couple of hours, using a shopping trolley to get through the toughened glass and there are police inside with we think water cannon, trying to hold them back. mass protest throughout the city, most have been peaceful but the police using pepper spray and batons to prevent people protesting. more on bbc news in the coming hours. thanks for watching.
6ood good morning, compared to last week's weather, this week is looking quieter. for many it will be dry, and there will be sunny spells and it will feel on the fresh side. we have a weather front moving south across scotland and northern ireland thatis across scotland and northern ireland that is giving a few showers. and north—westerly winds bringing in this relatively cooler air compared to last week, but we have the deep red across europe that is now drifting away. this morning, a little bit fresh but plenty of dry weather. showers in scotland and northern ireland. cloud in england and wales. some brightness in central and southern and eastern
areas. maximum temperatures between 16 and 20 degrees in northern areas. up 16 and 20 degrees in northern areas. up to 22 in the south east. looking good for wimbledon. sunny spells. and for much of the week at wimbledon, no rain in sight. 0vernight tonight, showers in scotland. clear spells into tuesday, allowing temperatures to go to single figures in the countryside. a cool start but there should be a lot of dry weather. may be showers in the far north of scotland. sunshine around on tuesday compared to today. cloud developing as the afternoon goes on. temperatures similar to those of today. wednesday, an area of high pressure moving in that
keeps things relatively settled. there will be more dry weather on wednesday and more sunshine. a bit of cloud towards eastern parts of england building up and cloud in far north scotland with showers moving into the northern isles. elsewhere they could be sunshine from start to finish. temperatures are cooler in the far north—west. and for the week... varying amounts of sunshine. dry weather around. temperatures in london getting into the mid 20s perhaps by the end of the week before falling off again at the weekend. 6oodbye.
you're watching bbc news at 9:00 with me, carrie 6racie. the headlines: protesters in hong kong try to break into a government building, on the anniversary of its handover from uk to chinese rule this is the scene live. jeremy hunt promises £6 billion to support farming and the fishing industry if there's a no—deal brexit. borisjohnson says he'd give public sector workers a pay rise if he becomes prime minister. a blanket of ice in mexico — a freak storm leaves hailstones piled up to a metre and a half high damaging homes and vehicles. now, all it takes is a text — new rules come into force making it easier to switch mobile phone networks.