Browse content similar to 08/12/2015. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :00:00. | :00:08. | |
Imports and exports to and from the world's second largest economy | :00:09. | :00:18. | |
continue to fall, fuelling concerns of a hard landing. | :00:19. | :00:20. | |
Live from London, that's our top story on Tuesday December the 8th. | :00:21. | :00:37. | |
Made in China is selling globally at a slower rate, and the Chinese | :00:38. | :00:42. | |
It's the wrong trend that is gathering momentum. | :00:43. | :00:50. | |
Is this the world's biggest ever sponsorship deal? | :00:51. | :00:57. | |
Basketball superstar LeBron James signs a lifetime contract with Nike, | :00:58. | :01:00. | |
the first such deal ever signed by the sporting goods giant. | :01:01. | :01:08. | |
And financial markets are quite worried about the news out of China, | :01:09. | :01:15. | |
and oil prices continue to bump along the bottom. We'll talk to you | :01:16. | :01:19. | |
about the winners and losers. And the battle | :01:20. | :01:22. | |
for our books this Christmas. We hear from the boss of e-reader | :01:23. | :01:24. | |
firm Kobo on the battle with And LeBron James becomes Nike | :01:25. | :01:27. | |
for life in a deal said to be worth Nice work if you can get it, | :01:28. | :01:32. | |
but is that too much? Get in touch - | :01:33. | :01:36. | |
use the hashtag #BBCbizlive. We start with China, the latest news | :01:37. | :01:44. | |
on trade. Both exports and imports declined | :01:45. | :01:54. | |
in November compared with The big question now is | :01:55. | :01:57. | |
whether or not the cooling economy will face a hard or soft landing | :01:58. | :02:00. | |
in the coming months and years. Chinese trade last year was worth | :02:01. | :02:03. | |
$4.3 trillion, making it the world's largest trader, a title it took | :02:04. | :02:08. | |
from the United States in 2013. Those figures disguise | :02:09. | :02:11. | |
a big problem, though. China saw imports drop | :02:12. | :02:16. | |
for a record 13th month in a row in November, down 8.7% | :02:17. | :02:19. | |
on the same time a year before. The falling import numbers suggest | :02:20. | :02:25. | |
domestic demand is not as strong And as you can see here, | :02:26. | :02:28. | |
the rate of Chinese growth has been coming down from the heady heights | :02:29. | :02:37. | |
of over 12% in 2010 to less than 7% The Chinese government is attempting | :02:38. | :02:41. | |
to shift the economy to one that is fuelled by consumer demand, | :02:42. | :02:47. | |
as seen in the West. However these latest figures | :02:48. | :02:53. | |
demonstrate this is not Our correspondent | :02:54. | :02:55. | |
in Beijing is Celia Hatton. How worried should we be by a | :02:56. | :03:14. | |
slowdown in those How worried should we be by a | :03:15. | :03:22. | |
slowdown in those figures? These numbers really just tell us that the | :03:23. | :03:25. | |
decline in the Chinese economy is continuing. Some analysts were | :03:26. | :03:28. | |
hoping that the numbers would a little bit, and maybe that would | :03:29. | :03:32. | |
just show the numbers in the fourth quarter would plateau altogether. So | :03:33. | :03:39. | |
we have seen declines in exports and imports. Imports in particular are | :03:40. | :03:45. | |
down across all major markets except to South Korea -- exports are down. | :03:46. | :03:53. | |
And import numbers, although better-than-expected, they are also | :03:54. | :03:57. | |
down, so it is not looking good for the Chinese economy. What are people | :03:58. | :04:02. | |
saying? Are they worried about the future? We know that economic growth | :04:03. | :04:09. | |
relies on confidence, it relies on people spending, and that | :04:10. | :04:11. | |
rebalancing of the Chinese economy will rest on whether people feel | :04:12. | :04:14. | |
confident to go out and spend and consume. They feeling about the | :04:15. | :04:21. | |
state of the economy? It depends on who you ask. If you listen to the | :04:22. | :04:26. | |
Government line, the government is saying, they are saying they knew it | :04:27. | :04:33. | |
was going to happen and are trying to refocus the economy and aim for | :04:34. | :04:37. | |
slower and medium long-term growth. The Government is saying that they | :04:38. | :04:43. | |
are still on track for China to hit its economic growth targets of 7%. | :04:44. | :04:50. | |
So it is really trying to reassure people, but yes, people on the | :04:51. | :04:54. | |
ground are concerned. It is quite a big worry, and we can really see | :04:55. | :04:57. | |
this were we look at Chinese savings rates. Chinese people save much more | :04:58. | :05:03. | |
individually than many people in many other countries around the | :05:04. | :05:07. | |
world, and most people say, that is because there is this insecurity, | :05:08. | :05:11. | |
this need to save for the future, this need to save for retirement | :05:12. | :05:20. | |
prop cos there is no real confidence that the government will provide a | :05:21. | :05:25. | |
safety net. But this is something we have seen for the past few years, | :05:26. | :05:32. | |
this economic slowdown is set to continue to 18 months, some analysts | :05:33. | :05:35. | |
say. Celia Hatton, thank you very much. | :05:36. | :05:45. | |
They have put out a red alert warning for the first time. | :05:46. | :05:52. | |
Internet firms including Google and Amazon operating in the EU | :05:53. | :05:55. | |
will be forced to report serious security breaches under | :05:56. | :05:57. | |
Reuters says EU countries have agreed to report any issues, for | :05:58. | :06:04. | |
companies in critical sectors such as transport, energy and finance. | :06:05. | :06:06. | |
The price of oil has fallen to its lowest level since 2009 as global | :06:07. | :06:10. | |
The price of US light crude sank to $37.65 a barrel, down 5.8%, while | :06:11. | :06:15. | |
The slumping price comes as Opec, a group | :06:16. | :06:29. | |
of the largest oil-producing nations, refused to cut oil | :06:30. | :06:31. | |
Financial regulators in Japan have recommended more penalties | :06:32. | :06:38. | |
The Securities Commission says the electronics giant should be | :06:39. | :06:50. | |
slapped with a record $60 million fine | :06:51. | :06:52. | |
over a massive accounting violation where the firm inflated profits by | :06:53. | :06:55. | |
around 155 billion yen over seven years. | :06:56. | :07:03. | |
Let's take you to the business live page. -- the Business Live page. | :07:04. | :07:20. | |
Stay with me, it is there. Air France on target despite the attacks | :07:21. | :07:27. | |
in Paris that knocked 50 billion euros of its revenue that month. -- | :07:28. | :07:33. | |
50 million euros. But it says despite that, it is still on track | :07:34. | :07:37. | |
for growth in passenger numbers. They had such a difficult year | :07:38. | :07:41. | |
anyway because of disputes with various unions and parts of Air | :07:42. | :07:47. | |
France and KLM as they try to restructure. Not an easy year for | :07:48. | :07:52. | |
them. Here in the UK, flooding is dominating the headlines after a | :07:53. | :07:56. | |
deluge of rain over the last few days. But already now concern, | :07:57. | :08:05. | |
talking about concerns over insurance and whether people are | :08:06. | :08:07. | |
properly insured in high-risk flood areas. A new insurance organisation | :08:08. | :08:13. | |
is good to be set up to be able to offer insurance to people in high | :08:14. | :08:21. | |
risk areas, but it won't start until April 2016, despite being agreed in | :08:22. | :08:26. | |
principle in 2013. There is too much legislation that has to go through | :08:27. | :08:33. | |
Parliament to make it happen. Not good news for people struggling with | :08:34. | :08:34. | |
insurance claims. Let's take you to Asia now, | :08:35. | :08:36. | |
where Japan has avoided Sharanjit Leyl has the details in | :08:37. | :08:39. | |
our Asia Business hub in Singapore. It is down, now it is up? What is | :08:40. | :08:56. | |
going on? That is right. They narrowly dodged a technical | :08:57. | :09:10. | |
recession in that last quarter. They have the economy figures showing a | :09:11. | :09:17. | |
contraction, and this will be a really welcome relief to | :09:18. | :09:21. | |
policymakers who have been trying to lift Japan's economy from the | :09:22. | :09:26. | |
doldrums. They have put in place aggressive stimulus measures aimed | :09:27. | :09:29. | |
at re-inflating the economy, and the Government have really been | :09:30. | :09:34. | |
pressuring companies to try to invest more of their record | :09:35. | :09:39. | |
properties to put the economy on a sustained recovery path, and they | :09:40. | :09:42. | |
have been warned by rising capital expenditure, which was a key | :09:43. | :09:46. | |
component of the upgrade. There was also some good news on the trade | :09:47. | :09:54. | |
front, posting a trade balance surplus. | :09:55. | :10:03. | |
Thank you very much, Sharanjit Leyl in Singapore. The situation in Asia | :10:04. | :10:10. | |
today was quite grim, Japan down 1% and Hong Kong 1.3%, and all of this | :10:11. | :10:14. | |
was about the news out of China which Celia and Ben have discussed | :10:15. | :10:20. | |
so far. It didn't really help markets in Tokyo. Europe following | :10:21. | :10:28. | |
the trend in Asia. All the markets in Europe down, so a sea of red | :10:29. | :10:34. | |
here, too. The fact that oil prices are so low, other commodity prices | :10:35. | :10:39. | |
so low, not helping either. So the sentiment is pretty negative right | :10:40. | :10:45. | |
now. Michelle Fleury is in New York for us. | :10:46. | :10:50. | |
The job prospects and labour turnover survey will help to answer | :10:51. | :10:56. | |
the question this Tuesday. Lots of Americans are quitting their jobs, | :10:57. | :11:03. | |
this may be and this would be yet another indication of improving | :11:04. | :11:06. | |
economic health. Turning to the housing market, the world's largest | :11:07. | :11:13. | |
home improvement retailer, Home Depot, will lay out its financial | :11:14. | :11:17. | |
targets for the next three years. And for a snapshot of the financial | :11:18. | :11:21. | |
industry, the bosses in Deutsche Bank and Wells Fargo are among the | :11:22. | :11:26. | |
top banking brass attempting to speak. | :11:27. | :11:38. | |
Michelle Burger in New York for us. -- Michelle there in New York. Let's | :11:39. | :11:47. | |
pick up an oil. Opec have kept the taps open, oil is flowing and prices | :11:48. | :11:54. | |
are falling. Good news and bad news. Good news for consumers and bad news | :11:55. | :12:01. | |
for countries producing it and the inflation around the world. It is a | :12:02. | :12:05. | |
balance between winners and losers. But what this is about is an intense | :12:06. | :12:10. | |
battle for market share. Saudi Arabia said it will not cut its | :12:11. | :12:15. | |
production even if the oil price does fall to $20 a barrel. Iran is | :12:16. | :12:21. | |
coming back into the equation as they return to markets after | :12:22. | :12:23. | |
sanctions, and Russia has continued to pump oil, so all of these factors | :12:24. | :12:29. | |
mean there is too much supply and too little demand. | :12:30. | :12:33. | |
In terms of the effect on global markets, there is plenty of good | :12:34. | :12:36. | |
reasons why this is good news. Someone arguing the United States | :12:37. | :12:41. | |
where money spent on gasoline is a pretty big part of people's outgoing | :12:42. | :12:47. | |
is, it is good news there in terms of people having more money to | :12:48. | :12:51. | |
spend. But then we have the Chinese trade numbers out as well. Just put | :12:52. | :12:56. | |
it all in perspective for us. Low oil prices are good for the | :12:57. | :13:00. | |
consumer, and it means prices at the pumps are low, but the reasons | :13:01. | :13:06. | |
markets are down is because markets are interpreting this low oil price | :13:07. | :13:09. | |
as a sign that global growth is slowing. Add to that the Chinese | :13:10. | :13:15. | |
data, which also shows China is a big consumer of resources and is | :13:16. | :13:18. | |
also slowing, that is really weighing on market sentiment. | :13:19. | :13:23. | |
How worried need we be about China? We always talk about America | :13:24. | :13:29. | |
sneezes, the world catches a cold. Is it the same with China? It is an | :13:30. | :13:35. | |
important destination for our goods but also what we buy from China. | :13:36. | :13:39. | |
Should the world economy worry about China when it is coming off such a | :13:40. | :13:45. | |
high? It is slowing significantly, but not the same level we have seen | :13:46. | :13:50. | |
in Europe or the US. Is important to distinguish where the slowdown is. | :13:51. | :13:59. | |
We need to look at infrastructure, imports, exports. But we are not | :14:00. | :14:04. | |
seeing such a slowdown in the services sector, health care, | :14:05. | :14:07. | |
education. Those are the really important sectors. I know you will | :14:08. | :14:12. | |
talk us through some of the other story is a little later, but for | :14:13. | :14:16. | |
now, thank you. Still to come: Have you got one of these on your | :14:17. | :14:20. | |
Christmas list? We will be hearing from the Canadian company Cobo -- | :14:21. | :14:32. | |
Kobo, over the battle for the e-book business. First, with that massive | :14:33. | :14:38. | |
event just how many days away, my children are counting, many will be | :14:39. | :14:41. | |
welcoming a pay rise over the next few months to pay for it all. So we | :14:42. | :14:46. | |
do have some good news. Salaries in the UK are expected to rise by 2.5% | :14:47. | :14:51. | |
next year in real terms, with workers in the retail sector feeling | :14:52. | :14:55. | |
the benefit the most. But at the other end of the scale, public | :14:56. | :14:58. | |
sector workers are still expected to see their pay frozen. Let's talk to | :14:59. | :15:05. | |
Ben frost about this, a consultant with the group but have come up with | :15:06. | :15:08. | |
the research. Nice to have you on the programme. Just tell us more | :15:09. | :15:12. | |
about wages in the UK next year in real terms, up by 2.5%. Surely that | :15:13. | :15:15. | |
has to be good news? Pay increases, roughly where the key | :15:16. | :15:27. | |
for the last couple of years, 245%, but very slow inflation, almost all | :15:28. | :15:34. | |
of that increase will benefit people in their pocket and not be beaten | :15:35. | :15:52. | |
away by inflation. -- .5%. -- 2.5%. Where will felt most keenly? Receive | :15:53. | :16:00. | |
benefit for the retail industry, people are benefiting from lower | :16:01. | :16:03. | |
petrol prices and they are spending that money. -- we will see benefit. | :16:04. | :16:10. | |
Things are not so good in the oil and gas sector. Not so many pay | :16:11. | :16:16. | |
rises there this New Year and of course the public sector is seeing a | :16:17. | :16:23. | |
significant pay freeze. Also we talk about the fact that oil prices are | :16:24. | :16:28. | |
falling and we are benefiting, but in terms of energy prices, white | :16:29. | :16:32. | |
households spending, that does not seem to be going down as quickly. | :16:33. | :16:37. | |
Household energy prices don't seem to be going down. The forecast is at | :16:38. | :16:47. | |
0.2%. The 2.5% salary increase, that is good news for people in the UK. | :16:48. | :16:53. | |
Thank you for joining us, then was joining us to talk about the fact | :16:54. | :16:59. | |
that real wages in the UK could be becoming higher in 2016, that is not | :17:00. | :17:08. | |
for all across industries of course. You are with business alive, the top | :17:09. | :17:15. | |
story is the falling trade figures from China. Also to bring you some | :17:16. | :17:21. | |
breaking news we are having through to the BBC. It is all about the | :17:22. | :17:27. | |
Oscar Pistorius keirin, it is ongoing in South Africa, Victoria. | :17:28. | :17:36. | |
-- hearing, it is ongoing in Pretoria, South Africa. He is to be | :17:37. | :17:42. | |
released on bail. The hearing has been taking place in South Africa | :17:43. | :17:47. | |
today and the news as Sally said, the court has granted him bail after | :17:48. | :17:51. | |
the conviction for murder. More details at the top of the hour with | :17:52. | :17:56. | |
the latest headlines just at nine o'clock. We will bring you that news | :17:57. | :18:00. | |
as soon as we have it. With Christmas around the corner this is | :18:01. | :18:04. | |
the busiest time of year for book-sellers, whether the | :18:05. | :18:07. | |
traditional printed page or e-books, they are flying off the | :18:08. | :18:13. | |
shelves. Amazon sells more e-books than any other retailer, but last | :18:14. | :18:17. | |
year the company faced criticism from some of the world leading | :18:18. | :18:22. | |
authors about its negotiations with publishers. Kobo was taken over by a | :18:23. | :18:33. | |
Japanese retailer, one of the largest in the world and the hope | :18:34. | :18:38. | |
was that it would help it to compete with Amazon. Michael Tamblyn is the | :18:39. | :18:45. | |
president. During his time at the company he has overseen berries | :18:46. | :18:49. | |
acquisitions and helped to launch the world's first waterproof e-book. | :18:50. | :18:55. | |
Our colleague caught up to talk to him about the rise of e-books and | :18:56. | :18:59. | |
what encourages readers to make the switch. | :19:00. | :19:03. | |
A lot of people do both, they may be reading their fiction, their science | :19:04. | :19:10. | |
fiction, their science-fiction, that fantasy on a digital device, but | :19:11. | :19:16. | |
then they are buying cookbooks and children's books and illustrated | :19:17. | :19:20. | |
books in print. A lot of people find themselves as a hybrid reader who | :19:21. | :19:28. | |
does both. Do people like the e-books or the e-readers? We look at | :19:29. | :19:35. | |
the devices as a way to bring people into that and to serve that person | :19:36. | :19:41. | |
who has books at the centre of their lives. You tend to gravitate towards | :19:42. | :19:45. | |
a new reader if you read one or two books a week and you have a device | :19:46. | :19:50. | |
that is optimised for that experience. You may use applications | :19:51. | :19:57. | |
if you or an occasional reader. How do your products differ from | :19:58. | :20:03. | |
Amazon's? The biggest difference is a philosophical one, reading is what | :20:04. | :20:10. | |
we do and it is all we do. We do not look at acquiring a reading customer | :20:11. | :20:12. | |
as a way to solve a bunch other things. We come out of book-selling | :20:13. | :20:18. | |
most of us professionally and then we look at this not so much as a | :20:19. | :20:24. | |
technology problem, more as a way to sell devices, but as a way to make | :20:25. | :20:30. | |
reading better. -- not as wages more devices. We have always believed | :20:31. | :20:38. | |
that there are two ways, the transition from print to digital | :20:39. | :20:41. | |
could go, it could either be a revolution that was happening to | :20:42. | :20:45. | |
publishers or it could be a revolution that happens with them. | :20:46. | :20:51. | |
We always believed the latter. With collaborating together, figuring out | :20:52. | :20:56. | |
what it is that readers want and by trying to bring the best knowledge | :20:57. | :21:00. | |
we have about digital reading back into publishing, that makes it | :21:01. | :21:04. | |
better for everyone. We would much rather be doing that in a more | :21:05. | :21:08. | |
friendly and less contentious way than some of our competitors do. It | :21:09. | :21:14. | |
seems to have worked well. That is the Chief Executive of kobo. Are you | :21:15. | :21:21. | |
an e-reader man or real book man? Definitely an e-reader. Then if you | :21:22. | :21:28. | |
go away you don't have to carry so many books. I still like a book, I | :21:29. | :21:32. | |
like turning the page. A traditionalist. Sorry! Coming up: | :21:33. | :21:42. | |
Would you pick an English bottle of bubbles over a bottle of champagne? | :21:43. | :21:48. | |
There is demand in places as far afield as China and Japan! Frazer | :21:49. | :21:56. | |
Thompson, no relation, the boss of Chapel down wines will join us live. | :21:57. | :22:00. | |
Let's have a look at some of the stories out there. We mentioned this | :22:01. | :22:08. | |
incredible deal that the Bron James has clinched with an IQ. -- LeBron | :22:09. | :22:28. | |
James has clinched with Nike. If these reports are accurate, a $300 | :22:29. | :22:38. | |
million deal, it is a lifetime deal. It is believed to be the first kind | :22:39. | :22:49. | |
of this contract signed by Nike. In some ways I am not surprised, it is | :22:50. | :23:02. | |
a lot of money and unprecedented. I would be interested in the terms and | :23:03. | :23:08. | |
conditions. We know Nike sponsored a lot of other young sports stars who | :23:09. | :23:12. | |
have had a fall from grace. Tiger Woods, Oscar Pistorius, Lance | :23:13. | :23:17. | |
Armstrong. What does it mean if you sign a lifetime deal, are they | :23:18. | :23:24. | |
locked in? What is interesting is it sounds like a lot of money, $300 | :23:25. | :23:30. | |
million is a lot of money, but you look at what they generate, the | :23:31. | :23:35. | |
brand association, the product range that it will no doubt launch for | :23:36. | :23:39. | |
them, it will bring in the money and it will be a profitable deal for | :23:40. | :23:42. | |
Nike, they will get something out of this. Absolutely, global sponsorship | :23:43. | :23:49. | |
deals worth billions and Nike is at the forefront of that. Let's talk | :23:50. | :23:54. | |
about a similar theme, Star Wars and the money it will make for Disney. | :23:55. | :24:01. | |
Star Wars carries its own marketing weight for Disney. What Disney is | :24:02. | :24:07. | |
arguing is that Star Wars has such a loyal fan base is they do not need | :24:08. | :24:12. | |
any linked merchandise or any commercial objects. At the moment | :24:13. | :24:21. | |
there is a Star Wars frenzy for all the bits and bobs to do with the | :24:22. | :24:26. | |
moving and all the merchandise is on sale for kids. You are speaking from | :24:27. | :24:32. | |
personal experience gesture marked my kids are pretty obsessed have not | :24:33. | :24:37. | |
even seen the film! This is a new fan base as opposed to an old fan | :24:38. | :24:43. | |
base. Yes, for Disney this has been a huge part of their business since | :24:44. | :24:48. | |
the 1920s, you think of Mickey Mouse, appearing on school | :24:49. | :24:52. | |
stationery, Star Wars has such a loyal fan base. Really good to see | :24:53. | :24:57. | |
you, thank you for talking us through that. We are wrapping up | :24:58. | :25:04. | |
business live slightly earlier, we are taking you to Johannesburg to | :25:05. | :25:07. | |
bring you the latest on Oscar Pistorius hearing. Oscar Pistorius | :25:08. | :25:17. | |
has been granted bail of 10,000 rand which is the equivalent of $700. He | :25:18. | :25:23. | |
will return to court on the 18th of April in 2016 and that is when his | :25:24. | :25:26. | |
lawyer will have to tell the court how far his appeal to the | :25:27. | :25:32. | |
Constitutional Court has gone, because he wants to appeal his | :25:33. | :25:36. | |
murder conviction dating that his constitutional rights have been | :25:37. | :25:40. | |
infringed upon. We have also heard from the judge that Oscar Pistorius | :25:41. | :25:44. | |
will be allowed to leave the house between seven and 12 in the day. | :25:45. | :25:53. | |
More news on that at the top of the hour. Oscar Pistorius granted bail. | :25:54. | :26:00. | |
That is it from us on business live . | :26:01. | :26:06. |