Browse content similar to 13/11/2015. Check below for episodes and series from the same categories and more!
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This is BBC business live with us. Still in crisis, street clashes in | :00:08. | :00:19. | |
Athens. Looks like back towards recession. That is our top story on | :00:20. | :00:23. | |
Friday 13th November. A growing mood of despondency in | :00:24. | :00:41. | |
Greece. The country's waiters GDP figures are out in a few hours' time | :00:42. | :00:47. | |
and they are expected to show that its economy contracted 1% compared | :00:48. | :00:51. | |
to the last few months, waiting at the growth of the past few months. | :00:52. | :00:57. | |
The robots, they are coming. Could the be taking your jobs, 50 million | :00:58. | :01:03. | |
jobs. That is the warning of the Bank of England's chief economist as | :01:04. | :01:08. | |
technology advances. The global markets are opening this Friday. | :01:09. | :01:17. | |
Stocks are dried overnight and investors continuing to mull over | :01:18. | :01:21. | |
the rate hike in America next week. We are joined by our tech experts | :01:22. | :01:28. | |
who will give his take on the new tech stories this week. We want to | :01:29. | :01:33. | |
know, what do you reckon about robots taking over? Could a robot do | :01:34. | :01:39. | |
your job? Let us know. Just use this hash tag. | :01:40. | :01:50. | |
A warm welcome to the programme. We start with Greece. Growing fears | :01:51. | :01:57. | |
that the country is slipping back into the session. Some are blaming | :01:58. | :02:03. | |
the austerity imposed by the EU and the IMF. Others, a failure by Athens | :02:04. | :02:08. | |
to stick to its reforms. Either way the suffering of the Greek people | :02:09. | :02:13. | |
are set to continue. Let's take a look at the numbers involved. Greece | :02:14. | :02:18. | |
return to economic growth last year after year slump. But it looks like | :02:19. | :02:25. | |
that recovery is over. GDP figures for the three months to September, | :02:26. | :02:29. | |
they are out in just a few hours from now. They are expected to show | :02:30. | :02:34. | |
that the economy contracted around 1% compared to the last three | :02:35. | :02:38. | |
months. Wiping out the growth that we saw in the previous quarter. It | :02:39. | :02:43. | |
is a trend that could be set to continue. Both the European | :02:44. | :02:48. | |
Commission and the OECD warned that Greek GDP will end the year down, | :02:49. | :02:53. | |
1.4%. With a similar fall coming again next year. This is the real | :02:54. | :02:58. | |
worry fight, a quarter of the Greek workforce, they are still | :02:59. | :03:04. | |
unemployed, without jobs, about twice the EU average and almost | :03:05. | :03:09. | |
twice of those under 25 are under -- without a job still. Greece was | :03:10. | :03:17. | |
paralysed by a new strike. 25,000 protesters taking to the streets in | :03:18. | :03:22. | |
central Athens. Trade union leaders and many Greeks say they have turned | :03:23. | :03:28. | |
on the Prime Minister and his party 's -- accusing them of caving into | :03:29. | :03:37. | |
lenders. Andrew Walker joins us this morning. Before we start, we have | :03:38. | :03:43. | |
got some comments from some of the process -- the protesters from | :03:44. | :03:46. | |
yesterday in Athens. This is what they had to say about austerity. I | :03:47. | :03:51. | |
believe strikes can backfire on workers but there are some moments | :03:52. | :03:54. | |
when people need to react. This is the time when people need to react. | :03:55. | :03:59. | |
Enough already with the taxes, enough with the double top. They | :04:00. | :04:06. | |
need to letters breeze. It is an expression of worry about the | :04:07. | :04:10. | |
uncertainty and insecurity that prevails in our country and for the | :04:11. | :04:13. | |
living standards of our society and people. -- -- let us breeze. The | :04:14. | :04:21. | |
Greek people must rise up and take to the streets because the situation | :04:22. | :04:25. | |
is only going to get worse. These measures that the government wants | :04:26. | :04:28. | |
to pass our measures that will be areas. -- that will bury us. Andrew, | :04:29. | :04:43. | |
as outsiders watching, hang on, they had a referendum in Greece. They | :04:44. | :04:50. | |
gave the thumbs up for the government to stay in the EU, to | :04:51. | :04:55. | |
accept the bail out. This money does not come from free and now they are | :04:56. | :05:00. | |
protesting again! There is no question that the short-term impact | :05:01. | :05:05. | |
on austerity does aggravate an economic downturn. There is a big | :05:06. | :05:09. | |
debate to be had whether you are laying the foundations are not for | :05:10. | :05:15. | |
stronger growth in the future. But, you have to bear in mind, even | :05:16. | :05:21. | |
though there was support for this is a party in the election, they did | :05:22. | :05:27. | |
have a mandate to negotiate with the EU, there were a lot of people | :05:28. | :05:43. | |
voting against it. -- Syriza party. There are others in the EU zone who | :05:44. | :05:48. | |
are vocally saying, Athens, we have had enough of this. One of the | :05:49. | :05:53. | |
sticking points at the moment is that it seems that the government | :05:54. | :05:57. | |
wants to allow people, if they do not pay their mortgages, they will | :05:58. | :06:01. | |
not repossess the homes. The government wants to write off | :06:02. | :06:06. | |
people's mortgages. The European Union and the IMF wants to see | :06:07. | :06:11. | |
tougher rules that will enable banks to foreclose, to repossess homes, | :06:12. | :06:18. | |
when borrowers are in default for a long enough period. It is | :06:19. | :06:22. | |
politically very sensitive, there is a question about it. It is a general | :06:23. | :06:28. | |
and a very sad fact of life in most economies, that if you do get into | :06:29. | :06:33. | |
serious enough arrears on a home loan, you end up losing it. But this | :06:34. | :06:38. | |
is one of the main big outstanding issues. I think the view in the rest | :06:39. | :06:43. | |
of the Euro group is that Greece has made a lot of progress, they have | :06:44. | :06:48. | |
had several payments of money. And what we are looking at now is the | :06:49. | :06:54. | |
last stages before the Euro group will authorise another payment to | :06:55. | :06:59. | |
Greece and in particular the release of up to 10 million euros to | :07:00. | :07:04. | |
recapitalise the banks. Let's talk about that. Currently there is this | :07:05. | :07:12. | |
2 billion euros package. The recapitalisation of the banks, the | :07:13. | :07:16. | |
restructuring of the banking system, that is something that the troika | :07:17. | :07:22. | |
are seeing is vital. We are still not seen the sort of overhaul of the | :07:23. | :07:24. | |
financial systems in reforms in the way that the banks | :07:25. | :07:39. | |
are run, two insulated them for -- from any | :07:40. | :07:43. | |
the big question is simply getting the capital into the banks so that | :07:44. | :07:48. | |
they have sufficiently strong foundations to provide the credit | :07:49. | :07:52. | |
that the private sector needs to expand. Therein made this | :07:53. | :07:55. | |
deterioration we have seen in the economy that will be confirmed in | :07:56. | :08:02. | |
the figures we are going to get hour and a half. That is very much | :08:03. | :08:03. | |
underlying. deterioration. We saw the slight | :08:04. | :08:09. | |
return to growth in the last quarter. The previous quarter, up | :08:10. | :08:14. | |
one view of what happened there was that may be a fair amount of | :08:15. | :08:20. | |
spending driven people getting out -- money out of the bag before | :08:21. | :08:24. | |
foreclosure. That foreclosure did happen and it has done further | :08:25. | :08:31. | |
damage to the economy. -- out of the bank. We have discussed the lenders | :08:32. | :08:39. | |
having to default some of the spending. Thank you | :08:40. | :08:43. | |
Andrew. Let's touch on some of the other stories making headlines. We | :08:44. | :08:48. | |
will start with the German economic growth. It slowed slightly in the | :08:49. | :08:50. | |
last few months. According to preliminary numbers. The German | :08:51. | :09:01. | |
economy exploded by 0.3% in that July-September period. Compared to | :09:02. | :09:10. | |
growth. They had growth of 0.4% in the previous quarter, that is why we | :09:11. | :09:14. | |
are seeing this load a little bit. Let's stay in Germany, Volkswagen, | :09:15. | :09:21. | |
it set as 30th November deadline for staff with knowledge about those | :09:22. | :09:25. | |
diesel emission test cheating to come forward. Workers who get in | :09:26. | :09:29. | |
touch with internal investigations by then will be exempt from | :09:30. | :09:35. | |
dismissal according to a letter from the branch chief. US regulators | :09:36. | :09:40. | |
found software that turned on emotions controls when the car was | :09:41. | :09:45. | |
being tested. -- emissions controls. Talking about Volkswagen, let's talk | :09:46. | :09:54. | |
about the Tabby. This just keeps going. What have they set aside, at | :09:55. | :10:04. | |
?7.5 billion. September the AT that scandal broke. That is not going to | :10:05. | :10:08. | |
be enough money. This is a story about Brazil, they have fined | :10:09. | :10:15. | |
Volkswagen 13 million dollars in Brazil. The Prime Minister of India | :10:16. | :10:20. | |
is in the country at the moment here. But Belgium does more trade. | :10:21. | :10:28. | |
Diamonds. It is day two of that three-day visit. Let's go to | :10:29. | :10:36. | |
Singapore. She is going to talk about the markets. We point one | :10:37. | :10:43. | |
finger at the word commodities. Asian shares took a big hit today | :10:44. | :10:49. | |
from swamping commodity prices. The prices of key commodities, oil, | :10:50. | :10:54. | |
copper and gold all failed to multi-year lows overnight because | :10:55. | :10:57. | |
there are list of growing concerns. First there, there is oversupply | :10:58. | :11:02. | |
issues in the sector because of slowing demand from China. Then | :11:03. | :11:06. | |
there is the likelihood of the Fed raising interest rates in the US in | :11:07. | :11:11. | |
December which is bad. It strengthens the US dollar. These | :11:12. | :11:15. | |
factors combined have packed a strong punch against the resources | :11:16. | :11:20. | |
sector here. Shares are down, most in Hong Kong. Glencoe shares tumbled | :11:21. | :11:27. | |
over 7%. There is the big Sydney listed miners that fell almost 2%. | :11:28. | :11:33. | |
Not a good day for the commodities sector today. No, indeed. Let's stay | :11:34. | :11:39. | |
in Asia, Japanese stocks slipped on Friday. They are snapping a | :11:40. | :11:44. | |
seven-day winning streak as investors shunned risk and cashed in | :11:45. | :11:48. | |
on recent gains after a sharp drop on Wall Street. It was a similar | :11:49. | :11:51. | |
picture across the region were shares slumped. Those commodity | :11:52. | :11:57. | |
prices plunging to multi-year lows and worries that slowing global | :11:58. | :12:02. | |
growth may worsen as supply glut. US Federal Reserve officials kept | :12:03. | :12:06. | |
beating the drum for a rate hike next month. Here in Europe, shares | :12:07. | :12:11. | |
following suit, opening the work. The FTSE and London down half a | :12:12. | :12:17. | |
percent. Focused on what central bankers have them sing on both sides | :12:18. | :12:21. | |
of the Atlantic, with Janet Yellen on Thursday not giving too much | :12:22. | :12:26. | |
away. We can find out more now about what is making headlines in the | :12:27. | :12:30. | |
business world across the pond. After a weak performance by Macy's | :12:31. | :12:34. | |
earlier in the week, we will find out how department store JCPenney | :12:35. | :12:38. | |
cork performed on the third quarter. It is expected to beat analyst | :12:39. | :12:45. | |
estimates, helped by higher sales in half of its stores. We will get a | :12:46. | :12:51. | |
look at US retail sales in October. Analysts believe Americans kept | :12:52. | :12:54. | |
spending on cars and other goods, making it a stronger month in | :12:55. | :12:59. | |
September. Data is expected to show that consumer sentiment is up in | :13:00. | :13:03. | |
November. Finally, the Labor Department will release figures for | :13:04. | :13:09. | |
October. It usually gets passed onto consumers. That will give us a peek | :13:10. | :13:14. | |
on inflation and whether or not it is headed in the direction of the | :13:15. | :13:20. | |
Fed2% target. Richard Fletcher joins us. Let's continue on because it is | :13:21. | :13:28. | |
the commodities theme. A problem from London's main market, the FTSE. | :13:29. | :13:34. | |
The FTSE is down around 6% since the beginning of the year. That is | :13:35. | :13:41. | |
because we are more exposed. We have seen commodity carnage as one market | :13:42. | :13:45. | |
commentator called it yesterday. London is more exposed and therefore | :13:46. | :13:50. | |
a lot of these companies are plays on the price of raw materials they | :13:51. | :13:57. | |
produce. Oil is touching 6.5 year lows, not surprisingly these | :13:58. | :14:01. | |
companies are seeing the sheer browsers just continually fall. It | :14:02. | :14:06. | |
has affected markets around the world. I want to ask you about some | :14:07. | :14:11. | |
of the European data. GDP numbers for France, Germany, Italy, Greece, | :14:12. | :14:18. | |
coming in at ten o'clock. What are you expecting? We get nine countries | :14:19. | :14:24. | |
updated and then we get the overall numbers which is meant to be 0.4%. | :14:25. | :14:30. | |
France has returned to growth, good news. Germany was disappointing, | :14:31. | :14:37. | |
there Gross has stalled. It was expected. -- their growth. The | :14:38. | :14:46. | |
eurozone number as a whole, comes ahead of more information from the | :14:47. | :14:50. | |
European Central Bank. Richard, many thanks. Are you going to come back | :14:51. | :14:56. | |
into the papers? We will talk to you shortly. We are joined by our tech | :14:57. | :15:02. | |
guru who will take us through all the tech stories like the Facebook | :15:03. | :15:06. | |
one, the drones. The laser drones that beam out the Internet, can you | :15:07. | :15:12. | |
imagine? You are here with BBC business live here on BBC News. | :15:13. | :15:18. | |
Now, it's been announced that the government has sold ?13 billion | :15:19. | :15:20. | |
of former Northern Rock mortgages that taxpayers acquired | :15:21. | :15:22. | |
Tanya Beckett has more on this and joins us now. | :15:23. | :15:33. | |
What more can you tell us about Northern Rock? Northern Rock have | :15:34. | :15:39. | |
been running up a nice little asset book so had been loaning mortgages. | :15:40. | :15:46. | |
It had become the fifth largest lender in that area. It was for the | :15:47. | :15:52. | |
crucial difference was how it was financed through the wholesale | :15:53. | :15:55. | |
market. It didn't have people depositing money. So it was less | :15:56. | :16:02. | |
stable. There were criticisms of the financial regulation authorities at | :16:03. | :16:05. | |
the time for not spotting it and therefore how it was exposed. We | :16:06. | :16:09. | |
know it had to be saved by the government. Some of its assets went | :16:10. | :16:14. | |
into virgin money and some were bought by the government, with the | :16:15. | :16:18. | |
hope that as the economy recovered, those assets would become more | :16:19. | :16:24. | |
recoverable. That seems to be the case. It went into a sort of bad | :16:25. | :16:29. | |
bank and now the government says it has sold 85% of those assets and 13 | :16:30. | :16:38. | |
billion to a private equity firm. That private equity firm has sold | :16:39. | :16:42. | |
some of it onto the TSB. So why couldn't the government sell it on | :16:43. | :16:49. | |
to the TSB straightaway. That's where we are with that. Any hopes it | :16:50. | :16:53. | |
was going to pay down vast amounts of public debt should be put in | :16:54. | :17:02. | |
context. Public debt is about one trillion pounds. Also the UK | :17:03. | :17:07. | |
Government has to sell off the remainder of The Royal Bank of | :17:08. | :17:12. | |
Scotland, it still owns a 73% stake in that and it is open to question | :17:13. | :17:15. | |
as to how much it will get for it. The word is it will make a loss. But | :17:16. | :17:20. | |
on the sale of assets, it made a profit, about a quarter of a | :17:21. | :17:28. | |
billion. Thank you, Tanya Beckett. Do you like same-day delivery? | :17:29. | :17:35. | |
I love it. Amazon, order before six p.m., next day it is in the hand. | :17:36. | :17:42. | |
We are fully paid-up members of the want it now generation. | :17:43. | :17:46. | |
Amazon leading the way, but other companies already doing it, we want | :17:47. | :17:50. | |
it now. Don't want to wait, don't want to wait! | :17:51. | :17:53. | |
An economy choked by austerity, or one that's just failed to reform? | :17:54. | :18:00. | |
The latest growth numbers coming out of Greece are expected to show it's | :18:01. | :18:05. | |
And now its been a busy week for tech stories. Facebook announced it | :18:06. | :18:18. | |
was working on laser drones that will beam high-speed internet access | :18:19. | :18:20. | |
The US charged four men in one of the biggest hacking case | :18:21. | :18:27. | |
Snapchat got marked down by one of its most high-profile investors, | :18:28. | :18:34. | |
raising further questions about the soaring valuations | :18:35. | :18:38. | |
And we can't not mention it, China singles day - | :18:39. | :18:47. | |
The last couple of years we have had managed to sell a record $14.3 | :18:48. | :19:16. | |
The last couple of years we have had this phenomenon in | :19:17. | :19:21. | |
they have managed to increase their valuations privately and then you | :19:22. | :19:25. | |
have these extraordinary billion-dollar valuation without | :19:26. | :19:38. | |
ever going to the market. A lot of these companies, people are | :19:39. | :19:41. | |
beginning to ask, are they worth that? Snapchat was worth 16 Ilion | :19:42. | :19:48. | |
dollars, according to the last round of investment in May, but one | :19:49. | :19:53. | |
investor, fidelity has cut its valuation. It has a stake in the | :19:54. | :20:00. | |
company and has cut it by 25%. Companies do have two hit the market | :20:01. | :20:06. | |
and go for an IPO. Find they are floating at a value lower than had | :20:07. | :20:15. | |
been expected. Square, the financial services Mobile payment products run | :20:16. | :20:19. | |
by the man from Twitter. air coming out of the silicon tech | :20:20. | :20:29. | |
bubble right now. The number of unicorns has spiked. They were | :20:30. | :20:35. | |
supposed to be rare, now there are 150 of them. Facebook laser drones, | :20:36. | :20:46. | |
for those who haven't heard about it, I love the project, isn't it | :20:47. | :20:56. | |
called Project Lune? It is. But this is Facebook's plan to beam the | :20:57. | :21:00. | |
Internet via drones and lasers to remote parts of the world. These two | :21:01. | :21:05. | |
giants, they are flexing their muscles. They both want to show they | :21:06. | :21:10. | |
are good people, good citizens and give the Internet to places that | :21:11. | :21:13. | |
don't have it. But they want to be first. They are trying out | :21:14. | :21:18. | |
extraordinary technology. The Facebook technology involves holding | :21:19. | :21:25. | |
this single winked unmanned vehicle. It will be floating around, | :21:26. | :21:33. | |
solar powered, firing a laser at it from the ground which has good | :21:34. | :21:37. | |
Internet. They have a hidden aerial about the size of a US time coin. So | :21:38. | :21:48. | |
extraordinary precision. Meanwhile, Google has got its plan to do the | :21:49. | :21:51. | |
same thing, but using high altitude balloons. It is kind of shows, two | :21:52. | :21:59. | |
companies that didn't exist 15 years ago doing extraordinary things and | :22:00. | :22:04. | |
spending vast amount on technology. Facebook, another announcement, they | :22:05. | :22:09. | |
have launched a new news at, notify, in the US. Trying to be a | :22:10. | :22:17. | |
big force in news. Let's talk about the hacking case in the US. This | :22:18. | :22:26. | |
dates back to last year. We knew JP Morgan, one of the great forces in | :22:27. | :22:32. | |
world finance had suffered a major hacking incident. It was a big | :22:33. | :22:37. | |
worry, on its domestic customers. You always hear great, colourful | :22:38. | :22:43. | |
stories when the US authorities charge people. We had this great, | :22:44. | :22:49. | |
long indictment outlining an extraordinary array of cyber | :22:50. | :22:51. | |
criminality. For people charge, two of them Israelis. They have done a | :22:52. | :22:58. | |
pump and dump operation using e-mails to send e-mails to people | :22:59. | :23:03. | |
and pump up the price of stocks and sell them. Analysts at payment | :23:04. | :23:10. | |
processing operation. Huge cyber crime enterprise, it shows how this | :23:11. | :23:14. | |
whole thing is developing. Pump and dump! You don't want to pump and | :23:15. | :23:20. | |
dump. Thanks very much, have a great weekend. | :23:21. | :23:25. | |
In a moment we'll take a look through the Business Pages but first | :23:26. | :23:28. | |
here's a quick reminder of how to get in touch with us. | :23:29. | :23:31. | |
The Business Live page is where you can stay ahead with all | :23:32. | :23:34. | |
We'll keep you up-to-date with all the latest details and | :23:35. | :23:38. | |
inside analysis from the BBC's team of editors right around the world. | :23:39. | :23:41. | |
Get involved on the BBC Business Live web page at BBC.com/business. | :23:42. | :23:45. | |
And on Twitter we are at BBC business and you can find us | :23:46. | :23:48. | |
Business Live on TV and online, whenever you need to know. | :23:49. | :24:06. | |
We want to talk about robots? Yes, most of our jobs, potentially 15 | :24:07. | :24:15. | |
million can be done by robots. We asked viewers if their jobs could be | :24:16. | :24:21. | |
done by robots. Most of them said no, because a robot will make | :24:22. | :24:32. | |
mistakes. Journalism isn't under threat. We | :24:33. | :24:41. | |
are safe! Robots are more mainstream? Yes, we have been warned | :24:42. | :24:51. | |
of this. It is a massive shift. We're talking about 15 million jobs, | :24:52. | :24:58. | |
the figure. Also it increases the gap between the haves and the | :24:59. | :25:01. | |
have-nots. Those jobs that are not affected by robots will see their | :25:02. | :25:08. | |
ways it -- wages rise but those that are, their wages will be driven | :25:09. | :25:15. | |
down. Facebook in India. It blocks more content than everywhere else? | :25:16. | :25:18. | |
Mark Zuckerberg was there last month. Although Facebook blocks the | :25:19. | :25:27. | |
most in India, they get the most requests in the US about their | :25:28. | :25:31. | |
users. A robot couldn't have done that because we're counting down on | :25:32. | :25:35. | |
the clock. We have finished but we do have a bit of time. What do we do | :25:36. | :25:40. | |
now? Have a great weekend. | :25:41. | :25:44. | |
There will be more business news throughout the day on the BBC Live | :25:45. | :25:48. | |
web page and on World Business Report. | :25:49. | :25:51. |