Transcripts For BBCNEWS BBC Business Live 20170403 : vimarsa

Through what is moving and why and weigh up the latest prediction that the Pound Sterling is due for a bounce back. Powering the future. Well be getting the inside track on a business which hopes to provide Young Companies with cheap Renewable Energy. And today we want to know, how green is your energy, and does it matter . Or when it comes to choosing a supplier, is it all about price . Let us know, just use the hashtag bbcbizlive. It isa it is a packed agenda as per usual, so it is a packed agenda as per usual, so lets get started. We begin in south africa, where president jacob zuma is under pressure because a No Confidence Vote in his leadership is being considered by the parliaments speaker. Its because of the contorversial Cabinet Reshuffle last week which saw the respected Finance Minister Pravin Gordhan and many other Cabinet Members sacked. Thats had a big impact. Lets talk you through the reaction. Within hours of mr gordhans removal, the south african currency, the rand, fell sharply and was down over 5 against the dollar for the week. There have been further falls this morning. The Share Markets were also impacted, seeing their biggest drop since 2015, with Government Bonds and banking stocks falling hardest. Mr gordhans successor, malusi gigaba, has called for a radical transformation of the economy, but as yet there are few details of what his plans are. However, it is likely the cost of borrowing will increase further. And that is because of a likely downgrade by the Credit Ratings agency moodys. It is due to deliver its verdict on friday. Many analysts now predict south africa to be downgraded to junk status. All eyes on friday for that announcement. Lerato mbele joins us from ourjohannesburg bureau. After theres sacking on thursday, we have just talked through the immediate economic aftershock, talk me through how the rand, the local currency, and the local markets are faring today. Hi, alice, thanks for that. The south african currency, obviously, is the most traded currency from the african continent, one of the leaders in the emerging markets space, so obviously a lot of speculation on the currency at the moment. It has dropped, as sally said, by more than 5 , and a further 0. 5 this morning, and no analyst is expecting the rand to recover, certainly until we have clarity on what the Economic Programme is going to be going forward. As was said earlier on, the new minister, malusi gigaba, has said he is going to pursue a radical Economic Transformation agenda in the treasury, make sure that the government spends much more on supporting small and medium enterprises, creating black industrialists, and giving more money to the poor. You get a sense that the policy will be leaning left a lot more than it already is, and if so, you can expect less Fiscal Consolidation and more of the Government Spending than saving. If you add to that everything that is happening into international markets, with iran declining in value, spread elation on the rand, and jitters around the prospects for the south african economy, the picture is not looking good. Speculation. Government is not able to sell its debt as favourable prices, bond deals have gone down, gone up prices, bond deals have gone down, gone up more prices, bond deals have gone down, gone up more than 50 basis points, so gone up more than 50 basis points, so anybody buying south african debt will be making a lot more money, and the government will be paying a lot more on those issue inserts. In terms Fiscal Consolidation, south africa is staying the course of managing its finances, and more importantly drawing in investment for growth. Those prospects arent looking good, and the mood in south africa right now is damp. As you say, bullish talk from the new Finance Minister, malusi gigaba, but a bit more on the mood in the country, there has been talk of protests d u e country, there has been talk of protests due to happening, murmurings about a vote of no confidence. Yeah. Well, the speaker of parliament would have to reconvene parliament, which is in recess until may, so she cut short a Working Visit to bangladesh and landed in south africa yesterday, considering whether to reconvene the parliament, where a vote of no confidence would be heard. She says it is possible but shes still considering. Civic society is frustrated, there have been protests at the treasury, there has been calls for a mass public strike on friday, and other people are saying that they just want to go to work to earn a living, that pays the taxes toa earn a living, that pays the taxes to a government that they believe hasnt really earned its place. So thatis hasnt really earned its place. So that is really how people are feeling. 0k, thank you forjoining us feeling. 0k, thank you forjoining us live from johannesburg. We will keep an eye on that story and update you with any news. In a record quarter, tesla delivered just over 25,000 cars in the first three months of the year. The electric car maker said this was a 70 rise on the same period in 2016. It is a rebound for the us company after Production Problems late last year resulted in a 9 fall in deliveries in the fourth quarter. The uk based Chip Designer Imagination Technologies says apple will stop paying the company royalties when it moves away from using its Intellectual Property in two years time. Apple is responsible for around half of imaginations revenues. The Silicon Valley giant uses the chip Makers Technology in its iphones, ipads and ipods. Bp is selling one of its major North Sea Oil assets for 250 million. Ineos will buy the Forties Pipeline system in a deal which also includes the terminal which delivers more than a third of the uks North Sea Oil and gas. Ineos has welcomed it as a new opportunity, whilst bp says it is looking to concentrate on other parts of the north sea. Toshiba shares are down yet again. Thats because of reports that the troubled japanese conglomerate may delay its Quarterly Earnings report for a third time. Sarah toms is in our Asia Business hub in singapore. Talk us through the numbers. As you said, toshiba shares did plunge, 5. 4 on monday, and as you said, it is after the Electronics Conglomerate signalled it might miss another deadline to release its results for the last quarter of 2016. Now, toshiba can apply to the Tokyo Stock Exchange for another extension, but still, the delay is bad news for shareholders, delivering another blow to investor confidence, and of course increasing those concerns over a possible delisting. They have delayed reporting earnings over problems at westinghouse electric, its us nuclear unit. Westinghouse has been hit by Cost Overruns and filed for bankruptcy last week, and asa filed for bankruptcy last week, and as a result toshiba forecast an annual loss of a record 9. 1 billion us dollars. To make up for this loss, the company is putting its prize Memory Chip Unit Up for sale, and bidders are queueing up apple, amazon and google was said to be interested. That is the very latest on toshiba once again, moving in the wrong direction, as sarah said, down over 9 at one pit at one point this morning. Business sentiment went up in march by quite a big amount, which is really interesting to know that the big corporate in japan are more optimistic than they have been for some time. That is howard have been for some time. That is h owa rd we nt have been for some time. That is howard went in asia today, that is how the dowjones closed on friday. Lets have a look at europe right 110w lets have a look at europe right now to give you a sense of how things are developing, belly flat, down in france, no big movers. Imagination technology is a massive mover, a Uk Tech Company that has had royalties with apple, but apple saying that the relationship may come to an end, and the shares are down 60 , i believe, a massive mover. We will talk more about the stories in a moment. Michelle fleury has the details about whats ahead on wall street today. Its a busy week ahead, with President Trump Meeting Chinese Leader Xijinping in florida, as well as lots of economic data. On tuesday, new numbers will show that the Trade Deficit likely narrowed in the month of february. On wednesday, we get a look at private sector hiring, with a report from payrolls processor adp. But of course the big number comes on friday, that is the labor departments closely watched employment report, which is expected to show an increase of 180,000 jobs in march. Also happening later this monday, major car makers will release new Vehicle Sales Figures for march. Now, Auto Companies have been enjoying a great run of rising sales, so investors and analysts are keenly watching to see whether the wheels are coming off the present record setting boom cycle. Michelle fleury for us in new york. Joining us is nick hungerford, founder of nutmeg. Com. Good morning, Nick Sterling has been having trouble s, but some are saying it is undervalued. Well, it ta kes two saying it is undervalued. Well, it takes two to make a trade, but we are seeing a Record Number of bets on the fact that sterling remains overvalued. But after the brexit vote, sterling fell to its lowest level against the dollar since 1985. This quarter that has just finished, that has been the First Quarter of rebound for still in since then, so you have got people coming out of the woodwork saying, yeah, now is the woodwork saying, yeah, now is the time to trade, were going back to where we were, and is forecast says that in 18 months we could get back to about 1. 38 against the dollar. But it could all change very quickly if the brexit negotiations look like they are not going well, 01 look like they are not going well, or if something is leaked from somewhere, sterling is going to be extremely sensitive. Three key factors driving world currencies, and we think about sterling, the euro dollar mix up, political risks from europe and what happens with sort of any potential defaults, and payments, overpayments et cetera. You have got what will trump do, with his policies be protectionist . Will they reduce global free trade . And then of course the brexit negotiations. All of this has affected and impact the currency markets. Sensitive is exactly the word, isnt it . We are coming up to the end the quarter, so corporate earnings. They have been pretty positive, but they have set some lofty valuations are the markets. Global markets, as the widest measure we can get, the msci world measure, up measure we can get, the msci world measure, up 6. 4 last quarter, which isa measure, up 6. 4 last quarter, which is a fantastic quarter. If you take emerging markets in particular, looking at this, astonishing, 12. 3 . When will the bubble burst, or is it not a bubble . Well, back to alices point, if corporate inning start to disappoint, if the talks between america and china this week do not go well, we will see some pretty sharp falls in the market. Remember, of course, this is a long term game, and what is driving these markets is the momentum we are seeing across the momentum we are seeing across the politics and economics, rebounds in manufacturing, particularly in china, driving this demand. So it seems positive at the moment, but we are on a bit of a Knife Edge Waiting for is to come out. How long have we been and knife edge . It feels like a long time are we getting comfortable . Great to talk to you, we will talk about the papers later. Still to come, well get the inside track on how to power business with cheap Renewable Energy. Yes, youre with Business Live from bbc news. We have got an energy theme in todays programme. New Research Reveals that decommissioning oil and gas wells in the north sea is set to cost £80 billion across the uk, norway, The Netherlands and denmark. The Boston Consulting Group warns that figure could double or even triple. Its director of energy practice, Philip Whittakerjoins us now. This is a huge sum of money. Is it being spent wisely . Who is going to foot the bill . It is the biggest industrial project that most of the General Public has never seen. We hear a lot about hs2 and hinkley point, but this is something which over the next decade will be absolutely on the same size of those projects yet the public will foot half the bill and very few are aware. So what are you saying in your report thats out today that needs to be done . I understand that youre saying it will cost double or triple that that we think at the moment . The current Cost Estimates could easily double or triple. Firstly, we need to get more transparency into the market. We need to get a better view of when we will be doing things and how much we will be doing things and how much we will be doing things and how much we will be spending . Secondly, wed love to see for consistency about the way we are promoting the xhishging activity. The more you do something, the better you get. Finally, wed love to see a stronger performance agenda. Wed like to see operators competing and the government making demands around efficient spend around the decommissioning space. Youre critical in your report about the way in which the decommissioning is being conducted. You think there isnt enough transparency, it isnt clear enough in which the process is being done . We think it is a fantastic opportunity for uk operators and for the uk taxpayer and also very importantly for uk suppliers. If we can establish the uk as suppliers. If we can establish the ukasa suppliers. If we can establish the uk as a base for decommissioning expertise that opens up a big Global Market for the 9,000 platforms that will be decommissioned globally in the next half a century, were optimists, but critical optimists. Thank you for your time. Just mentioning that story about imagine deck knolling, shares down over 65 . Apple dealing a blow to the uk tech firm notifying it will stop using its products. More details on our website. Youre watching Business Live. Our top story south africas rand has fallen again amiden amid the fall out of last weeks Cabinet Reshuffle. They are on an easter recess, but Will Parliament be reconvened . A look at the markets. Thats how they are faring at the moment. Starting a business is a risky decision for any aspiring entrepreneur. In the absence of a proven track record, start ups face higher costs for things like loans and technology, but the cost of energy can also provide a barrier to entry for new businesses. A recent report found that small and Medium Sized Enterprises are losing 625 million a year on overpriced contracts. And a separate report has found that more than 60 of Small Business owners in the uk interviewed last year dont regard Energy Efficiency in the workplace as a key priority. Squeaky clean energy is a marketplace which connects companies with Renewable Energy providers. Werejoined by chris bowden, founder of squeaky clean energy. Good to see you. Good morning. That was the keyword, isnt it, market place . Yes. This is a Clean Energy Market place that youre setting up, targeting small and medium sized businesses . We connect renewable or clea n businesses . We connect renewable or clean generators, solar, wind, high dread and sustainable biomass. We connect them to corporate businesses so connect them to corporate businesses so they can supply those businesses ata similar so they can supply those businesses at a similar price or lower price than fossil fuel at a similar price or lower price than fossilfuel or at a similar price or lower price than fossil fuel or what we call dirty electricity. But this isnt about saving money. This is about being able to choose clean energy . Well, it is about saving money because a lot of clean Energy Contracts or Renewable Energy contracts or Renewable Energy contracts are sold at a premium to dirty Energy Contracts people and so, so what we are trying to do is being the catalyst to shift businesses to Renewable Energy by providing a price which is at or below the big six who dominate the industry after 27 years of competition. If i am he in