Markets are trading higher, taking their lead from asia. And i sit down with the man who makes hollywood blockbusters without the hollywood budget. Jason blum tells Me Why Making Movies On The Cheap gives him more freedom to make betterfilms. And as the boss of] crew says he underestimated how technology would revolutionise retail. We want to know how has it tech changed the way you shop . Let us know. Just use the hashtag bbcbizlive. Hello and welcome to Business Live. Do get in touch about your Online Retail shopping experiences. What did you buy in the midnight hour after a Big Night Out . That will be interesting we start with the price of oil and whether that goes up or down will be decided later at a meeting of the worlds top producers. Opec the organisation of the Petroleum Exporting countries is led by saudi arabia, with other major producers including iraq, iran and nigeria. Theyre being joined by non opec members inclduing russia and are expected to announce a deal later to try and push prices higher. In December Opec and non opec countries agreed to cut production by 1. 8 Million Barrels per day, about 2 of the global total. Cutting supply should boost prices. Those cuts were agreed for six months, but that expires injune. After yesterdays meeting to monitor progress on that a nine month extension was recommended. And this shows you why. The price of brent rose sharply in december when those Production Cuts were agreed. That was the trigger point in december last year. But its been volatile since then and struggling to hold onto those gains. It now stands around 54 a barrel. Russia can cope with this level moscow has based its budget on 40 per barrel. But the biggest opec producer saudi arabia wants 60 per barrel. But heres the big problem. Shale Oil Production in the us fell sharply when prices hit rock bottom it just wasnt worth their while to extract it at that price. But now prices are higher theyre back and their technology is improving making it cheaper and more efficient. And it means us Oil Production has surged by a Million Barrels a day over the past year and all that is adding to a global oversupply of oil. With me is alan gelder, an expert at oil analysts, wood mackenzie. Welcome to the programme. A lot to get through, saleh laying out some of the issues and that is what opec is contending with. Lets touch on the break even point, what price do certain countries needed to be. That will be a key point of the negotiations. Saudi arabia has declared 60 and other countries need a higher number to achieve a fiscal balance. If not, they need to borrow to fund the social programme. Many 0pec need a higher number, venezuelan would be the highest. How hopeful of a that they will get the higher price . If they sustain Production Cuts over the next nine months, we might get to level the saudis are expecting towards the end of the year, but something that is high 50s by the end of the year. We should say non 0pec members, russia involved in this. They are concerned about the United States. We talked about the United States. We talked about Shale Production coming online. A real contender because it is the traditional producers we associate this with. When the price fell saw a lot of the production falling away, but this is coming back . This is opecs dilemma, there isa back . This is opecs dilemma, there is a new player in town. They can do it in is a new player in town. They can do itina is a new player in town. They can do it in a commercial way, so the challenge for 0pec is, with these cuts, when do they online the cuts . What is the pacing of that, how does the manual group work . Were looking at the extension to nine months because the First Quarter is when demand dips and that is not when you wa nt to demand dips and that is not when you want to return barrels to the market. We saw parallels as far as the price is concerned in trying to push shale producers out of business, so there is a threshold, there is no point in getting this oil out of the ground in terms of shale because it is expensive. We have Seen Technology improve that makes it cheaper to get shale out of the ground, so that argument doesnt work any more . It is a balance. We have seen a number of companies fail, but we have seen consolidation, costs come down and Technology Improvement has meant it has gone from break evens of 60 to 50. The question we have, what the balance between Technology Improvements and cost inflation as a result of activity which requires higher prices. There has been a Big Development in west texas, that is where most of the growth is coming from. Other places near higher prices. 0pec is facing a different dynamic now than its traditional market. It is so different how things have changed. Thank you for explaining that. In other Business News the white house has denied accusations that the president s Budget Proposals contain a serious maths error. Former us treasury secretary Larry Summers says the Spending Plan 2 trillion of extra federal revenue twice by using it to both to cut taxes and reduce the deficit. But white houses Budget Director says he stands by the numbers. The budget unveiled on tuesday proposed deep cuts to welfare programmes. Aston martin has posted a First Quarter profit for the first time ina First Quarter profit for the first time in a decade. Revenues in the first three months of the year more than doubled after strong sales of its new model. It was sold by ford in 2007 to its investment firms. The company has gone bankrupt seven times in its history and is now reported to consider a Stock Market Flotation in london next year. Mongolia has received a 5. 5 billion aid package to stabilise its economy and push through much needed reforms. In return, mongolia agreed to cut spending and raise taxes as well as build a Stronger Network for its financial services. The resource rich nation which holds president ial elections next month suffered a slowdown after Commodity Prices collapsed, and demand slowed. Not n ot ofte n not often we talk about mongolia and not often we talk about the next story either. A Chinese Group is buying the worlds second biggest condom maker. Humanwell Healthcare Group will pay the Australian Health care giant ansell 600 million for the business. Sharanjit leyl is in singapore. It isa it is a big deal . It is. It is a condom brand named afterjames bond. They are selling their business to the chinese consortium. You have Humanwell Health care group, partners and among the brands its selling sounds like james bond. Chinas Condom Market is lucrative, set to triple by 5 million and that is according to a report out. There is according to a report out. There isa is according to a report out. There is a lot more awareness of the benefits of condom is. Sales in china have jumped in benefits of condom is. Sales in China Havejumped in two double digits ina China Havejumped in two double digits in a year. And also the manufacture of wide range of drugs to contraceptive drugs to hiv test kits. There are many chinese manufacturers seeking to buy foreign firms to try to expand beyond their home market and no big surprise that the shares have jumped above 4 in australia today but we note the transaction is still subject to regulation and approval. It is expected to be completed by the end of september. Could be a Breaking News Story when the regulators give its approval. Thank you very much. I have to say, it is green arrows across the board. The Broader Market in america, with another record high on wall street. Markets across asia doing well, a weaker dollar of the back of what was said on the back of the Federal Reserve minutes. We will cut that in a second. Lets look at europe now. Slightly higher. Could see another record high for the ftse 100 . Another record close. It is interesting to see how markets are trading around the world and we will talk about that in detail in a moment, but lets look ahead to what is on wall street. 0n on thursday, sears will be reporting earnings. They warned investors in march there was a chance it may not be able to continue operating after yea rs of losses be able to continue operating after years of losses and declining sales. But sears has said it is expecting a net profit as it undertakes a plan to cut 1. 25 billion in costs this year. In contrast, dollartree to cut 1. 25 billion in costs this year. In contrast, dollar tree is expecting stronger earnings this quarter and are boosted by a higher in store traffic. Several retailers have blamed low traffic in stores for very weak sales. Finally, there will be a new Company Trading on the New York Stock Exchange on thursday. Wide open west is the sixth largest Cable Operator in the United States and will trade under the symbol wow joining us is tom stebenson, Investment Director at fidelity international. Good morning. Lets talk the fed. I like your glasses. Where are your glasses by the way . Ijust havent got them on. All eyes were on the Fed Yesterday and expectation is still ofjune Fed Yesterday and expectation is still of june rate Fed Yesterday and expectation is still ofjune rate rise, but some doubts creeping in yesterday, is that fair to say . Yes, two keywords, the first was soon. The Fed Rate Setters said they felt if things carry dom on their current trajectory it would be appropriate to raise Interest Rates soon. The second was transitory. The reason why they think they will raise rate is because they think the recent sockless in economy, softness in the inflation is transitory and it will pass. The odds are very short on june rate rise and another one in september and then potential will turn to how the Federal Reserve sta rts turn to how the Federal Reserve starts to unwind its balance sheet. It has bought 4. 5 trillion of bonds to try to underpin the economy. It has two let them role off an reversed that easing policy. In the meantime you have the snp closing on a high, the ftse 100, meantime you have the snp closing on a high, the ftse100, it would suggest markets are on the up . Yes, markets are looking at not rising Interest Rates, but the reason why Interest Rates, but the reason why Interest Rates, but the reason why Interest Rates are rising. The reason why the feds feel relaxed about pushing rate is because the Global Economy is picking up pace and that is what markets are focused on. For now, thank you. Retail shopping disasters, have a ponder on back. Still to come. Box office on a budget. I meet the man who makes some of hollywoods biggest movies, on a tiny budget. And without the big money pressure, jason blum tells me it means he can make a better movie. Youre with Business Live from bbc news. Bicycle and motoring Chain Halfords saw a 10 drop in profits, despite revenues rising 7. 2 . The retailer blamed the weak pound for driving up the cost of imports. Andrew walker has been looking at the figures. Did you cycle in this morning . normally would have done, but sadly not. Lets talk numbers. Halfords, the same tale, the weak pound affecting their bottom right . Yes, this is a business whose revenues are in stirling, selling stuff to british customers but has a high proportion of its costs on imported goods. It has two convert sterling into borren currency. That has been reflected in a decline in the profits despite relatively good performance on revenues. The Chief Executive says she has been pleased with the performance in that respect. The company puts a figure of £14 million on the cost of the decline in sterling. The way in which it has impacted its outgoings. That is more than the decline in profits. It does suggest the company is, if you like, getting on top of this issue. But it is an Unwelcome Development for shareholders. This issue. But it is an Unwelcome Development forshareholders. It this issue. But it is an Unwelcome Development for shareholders. It is a striking contrast compared with many in the 100 share index, Bigger Companies who make a lot of money in foreign currency, they have done well. But those more dependent on the bridge s consumer have suffered. If you look at the share price, it fell sharply by 25 in the immediate aftermath of the referendum. It has recovered a lot of the ground since car but not all thank you. Other retailers out, pets at home looking pretty good, they are making their money in the grooming service and the Veterinary Service as well. They saw a big rise in the veterinary business, up 25 , but they are having to admit they will have to bring down their pet food prices, which i would imagine for pets at home, that is your bog standard. I am just looking at that hairdo, quite a bow on the dog in the picture. Youre watching Business Live our top story. We are watching closely the price of oil today, and 0pec and non 0pec members who are meeting in vienna to decide on whether they will extend their supply cuts and whether that will have any impact on prices. Something that might use a lot of oil, a rocket launch. New zealand has successfully launched its first test rocket into space the work of a kiwi American Firm called rocket lab. The seventeen metre high craft took off from a private launch pad on new zealands north island and is designed to carry small satellites into space. A company in new zealand has sent a rocket into space from the worlds first private orbital launch pad. The launch was a success but crucially didnt get into orbit, explained that for us . This is a little rock it, much smaller than something you might see nasa launch, only 70 metres tall, and designed, as you say, the tiny cube satellites that are revolutionising the markets. They made it into space, took about three winners to get up there but not quite into orbit. The company stressed this is just a test, in fact the launch was codenamed hashtag its a test, just to make sure everyone knows this is not good for them, and they will launch later this year again, also a test, then on the third test they will take a pay payload with them. This Fast Developing Market is really what they want to get into. It is companies not countries in the space race at the moment, and it is a beak a big leap forward for this. Making films on a tight budget isnt easy but it can bring big returns. 0ne firm thats made its name with micro budget films is Blumhouse Productions. One of its first films was paranormal activity. It costjust 15,000 to make but made nearly 200 million million at the box office. It then went on to produce another horrorfilm called insidious production costs there were a bit higher at 1. 5 million but the film raked in 97 million. And its a niche its continued to pursue. Get out released injanuary this year has already made more than 230 million at the box office but cost just 4. 5 million to make. So i caught up with the founder and Chief Executive of Blumhouse Productions jason blum. And asked what makes these low budget films so different it allows us to try very different things. We did the purge, get out, split, all low budget movies, but they wouldnt have got made at 820 or 15 million, typical studio budget, because their ideas were such oddball ideas. But by doing low budget movies we can try weird ones. So talk us through the financing. This is very much about not spending a lot of money up front, and then with the Marketing Budget you manage to turn these movies into really big returns. The green light about movies is very simple because again they are low budget, not a lot of risk. The real big moment for our movies is whether or not they get a wide release around the world or not. And, oddly, the Marketing Budget for our movies is six times the negative cost. So our green light is we are going to release it in 3000 screens. That we dont determine until after the movie is finished, we determine it with a studio, and that is when we know we have a winner, when we will get a big release. So what does this low cost model do that you couldnt do if you had a multi Million Dollar budget . Couldnt do if you had a multiMillion Dollar budget . You dont have two cast movie stars, you can kill the hero of the movie halfway into it, it is a great freedom, and also not to have a 3000 screen freedom, and also not to have a 3000 screen release hanging over your head. So it really allows us to try different things. Sometimes it works, sometimes it doesnt, but when it doesnt work we dont get hurt too badly. If you had a massive budget, what could you not do . Expensive movies by definition have two appeal to all four quadrants of the audience, so the storytelling i think gets watered down, and the decision is very much by committee. The fun of movie making is i think if this rated, the bigger the budget is. Then theyll like the storytelling and Everything Else gets compromised. We only only make a certain kind of movie, thrillers and genre movies, which really benefit from low budget. I dont presume to think that every movie could be made on a low budget. If i go and see a vengeance, could be made on a low budget. If i go and see a vengeance, we could be made on a low budget. If i go and see a vengeance, we want to see go and see a vengeance, we want to see if we go and see the avengers. We want to see big budgets. You have to spend a bit more money on tv, why is that . Micro budget doesnt work the tv because the Television Market is a much healthier market. The way we do low budget movies, everyone works are free, we dont take a fee, the actors, the director, the writer, they all work for low pay scale, if it works, people get paid, if it doesnt, they dont. For tv, it works, people get paid, if it doesnt, they dont. Fortv, in it works, people get paid, if it doesnt, they dont. For tv, in a movie, we say were not going to pay you but you get to do what you want to do is very a feeling in the movie business. In television if you said that, they would say it is good to hear that, but this guy over here is going to pay me and i get to do what i want to do. So it is much more competitive. For that reason micro budget in tv is not the solution. We have a different idea of how to crack tv but its not that. Are you ever surprised when you see the success of your movies, how well they do . Well, a Hit Movie Isa how well they do . Well, a hit movie is a magical thing. How well they do . Well, a hit movie is a magicalthing. No how well they do . Well, a hit movie is a magical thing. No matter how many times it happens, when we have one, get out was our most recent success , one, get out was our most recent success, and we thought it was going to do quite well, and it opened, and it had a very good opening, not our best but a very good opening weekend. But when we knew it was Something Special was the second weekend, because typically genre movies dropped 50 to 60 from the first weekend to the second. Yet 0utcrop about forgiveness and. We knew the magic had happened get 0ut dropped about 20 . If i stop getting thrilled it is time for me to do Something Else because that is the fun of the business, that no one really knows until these movies come out into the world, and when they resonate or connected a big way there is better. Really interesting chat with him about how he does it on the cheap. That brings in some massive returns on those films. Tom is back and we are going to talk about President Trump, who is in brussels right now meeting with european leaders. There is lots to discuss. But from the Point Of View of brussels, they will be putting a lot of pressure on the us president to stick to the paris climate accord. Front page of the Financial Times today. It follows on from his meeting with the pope yesterday, which was a similar theme. Thats right, when the pope handed him one of the that cans in cyclicals, a big report on Climate Change, to encourage him to changes thinking. Donald trump hasnt achieved everything he planned to deliver one of the things he has done, a lot of Executive Orders reversing Climate Change issues. The europeans are very keen to change his view on this. The german line is particularly interesting, because what they are saying the President Trump is, look, it is notjustjobs or reversing Climate Change, you can have both, but actually these measures can be good Economic Growth and thejobs measures can be good Economic Growth and the jobs as well. It is quite interesting, because when you think about this, during the Election Campaign he said many times he would rip up the paris accord. When you think about the time, the effort and the energy to get to these accords, the energy to get to these accords, the transpacific partnership, 0bamacare, paris the transpacific partnership, 0bamaca re, paris climate the transpacific partnership, 0bamacare, paris Climate Change, it is years of negotiations and hours and hours of discussions. Absolutely, and what we are seeing isa absolutely, and what we are seeing is a real split in the white house actually between those who are really firmly against action against Climate Change, and those who are more persuaded. I think peter this might be his daughter, ivanka, and her husband jared kushner, who really are much more along the european way of thinking that maybe the president. Tom, thank you, really good to see you. I want to talk about shops and retailing. You are getting in touch with us and we have asked about the underestimation of the power of technology. This went as i cant remember the last timei went as i cant remember the last time i bought something in the street. I use my phone and return it using the label. Not good for bricks and mortar retailers. That is all from Business Live, we will see you very soon. Good morning. Yesterday was the warmest day of the year so far. We got to 26. 6 celsius in worcestershire. Today is actually going to be even warmer. Hot across most parts of the uk and there will be sunshine for most of us as well. I say most, because there is a bit of fog around the irish sea coasts through this morning, just lapping onshore across parts of northern ireland, South West Scotland and north and western parts of wales. The most of us, sunshine and much more sunshine across scotland compare the yesterday. And in the west, those temperatures could reach 28 degrees. 25 celsius even across the central belt. Very warm if not hot day. Lots of sunshine a krasnodon england, most of the fog around the coasts will have cleared away probably by this afternoon. We will see a bit more sunshine coming through. Temperatures even down towards wales in the South West Of England getting up into the mid 20s. Fairweather cloud developing in central and eastern areas but still some lengthy sunny spells. 0vernight tonight, little change, there will be some clear skies, in fact it will be some clear skies, in fact it will be quite a warm, sticky and muggy night into friday morning. Temperature is now lower than 14 to 17. The friday at south, one sunshine for friday it self, warm sunshine. Temperatures will rise even further. It will be a hot day still from today. We could well reach 29, perhaps 30 degrees in the north west of scotland, elsewhere across the uk, those temperatures rising up into the mid to high 20s. 28, 20 rising up into the mid to high 20s. 28,20 9 rising up into the mid to high 20s. 28, 20 9 degrees rising up into the mid to high 20s. 28,20 9 degrees in the rising up into the mid to high 20s. 28, 20 9 degrees in the south east. Going into saturday, we still have the hot air 2829 degrees. As it bumps into the hot air it will spark off some thunderstorms. As it moves through on saturday. So some really heavy downpours expected for parts of wales, the midlands, up in of the uk. Fresher conditions behind that, but the uk. Fresher conditions behind that, but towards eastern areas again the temperatures will get up into the high 20s. A fresher day again on sunday but plenty of dry weather around, a few showers going in towards the south, quite humid as well but temperatures about 18 to 25 degrees. To summarise for the bank holiday weekend, a hot and humid start, there will be a thundery breakdown on saturday, fresher conditions to come into sunday and bank holiday monday. Thats it from me. Hello its thursday, its nine oclock, im joanna gosling, in for victoria, welcome to the programme. Police investigating the Manchester Arena bomb attack have stopped Sharing Information with us officials after leaks to the media, the bbc has been told. Uk investigators were outraged when photos appearing to show debris from the attack appeared in the latest edition of the new york times. How will this impact the investigation and wider intelligence sharing between the uk and us . And as more victims of the attack are named the mother of Olivia Cambpell gave an emotional speech at a vigil in bury. Please stay together, dont let this beat any of us. Please, dont let my daughter be a victim. Applause. The Home Secretary has said that the prevent anti terror
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