Browse content similar to 03/03/2016. Check below for episodes and series from the same categories and more!
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Latin America's largest economy is being battered on all sides. | :00:00. | :00:27. | |
Brazil was once a star of the emerging markets | :00:28. | :00:29. | |
but the global slowdown, commodities slump and corruption | :00:30. | :00:41. | |
Also in the programme...we're taking a look at the economic plans | :00:42. | :00:48. | |
of Democrat Hillary Clinton - this time yesterday it was all | :00:49. | :00:51. | |
about Super Tuesday and we picked apart the economics | :00:52. | :00:53. | |
of Republican Donald Trump as the race for White House hots up. | :00:54. | :00:57. | |
And are we seeing a turning point for financial markets | :00:58. | :00:59. | |
Oil is rising - emerging market currencies are strengthening - | :01:00. | :01:03. | |
having that conversation in about five minutes. | :01:04. | :01:18. | |
Today we'll be getting the inside track on Scott Scott - | :01:19. | :01:48. | |
a US law firm - specialising in class actions that has | :01:49. | :01:51. | |
We have its managing partner David Scott on the programme. | :01:52. | :01:54. | |
All week we've been hearing from businesses giving their view | :01:55. | :01:57. | |
on whether Britain should leave the EU. | :01:58. | :01:58. | |
Do you think that it's a decision for the individual or is it helpful | :01:59. | :02:02. | |
We start in Brazil - as it struggles with the worst | :02:03. | :02:08. | |
In a few hours' time official figures are expected to confirm | :02:09. | :02:12. | |
the once booming economy shrank last year at the steepest rate in more | :02:13. | :02:15. | |
Analysts including the International Monetary Fund think Brazil's economy | :02:16. | :02:20. | |
contracted almost 4% last year - the worst performance of any | :02:21. | :02:23. | |
1.5 million jobs disappeared last year - the fastest pace of job | :02:24. | :02:43. | |
Part of the reason is the slump in commodity prices. | :02:44. | :02:55. | |
The slowdown in China means there's far less demand for the minerals | :02:56. | :02:59. | |
and other raw materials Brazil produces. | :03:00. | :03:01. | |
And as an oil exporter - Brazil's been hit hard | :03:02. | :03:03. | |
And back at home - a big corruption scandal | :03:04. | :03:07. | |
at state-run oil producer Petrobras has implicated key politicians | :03:08. | :03:09. | |
and business leaders - shaking the government | :03:10. | :03:10. | |
of President Dilma Rousseff and the confidence of foreign | :03:11. | :03:13. | |
Himena Blanco is the Head of Americas analysis at Verisk | :03:14. | :03:19. | |
Thank you for joining us. We ran through those numbers, up to 4% | :03:20. | :03:28. | |
contraction in the economy, and to almost 11% in | :03:29. | :03:28. | |
inflation. This is not just numbers, this is major changes in | :03:29. | :03:36. | |
the way that people live and what they can afford to eat, the jobs | :03:37. | :03:41. | |
they can do and the access to sanitation, how long they can | :03:42. | :03:42. | |
stay in formal education, what is this like on the | :03:43. | :03:45. | |
ground for people in Brazil? This is the main risk the legacy of Dilma | :03:46. | :03:51. | |
Rousseff's party. success in improving the standards | :03:52. | :03:52. | |
of living of millions of Brazilians. We're talking about people losing | :03:53. | :04:17. | |
their jobs, struggling to pay rent and for transport while at the same | :04:18. | :04:21. | |
time seeing the cost of those services continuing to increase. But | :04:22. | :04:26. | |
we are also seeing a much more profound or structural struggle, | :04:27. | :04:29. | |
deliver basic facilities, so for example we | :04:30. | :04:33. | |
will see a delay in sanitation programmes and connecting households | :04:34. | :04:40. | |
to storage systems, and that can have a very important impact on for | :04:41. | :04:44. | |
example the health of the population and the spread of | :04:45. | :04:48. | |
communicable diseases. Like the Zika virus, | :04:49. | :04:50. | |
is a relatively new democracy. It has | :04:51. | :04:55. | |
from where it was in the 70s as a military dictatorship. What chance | :04:56. | :05:04. | |
is there that we will see any kind of income redistribution? Is there | :05:05. | :05:09. | |
any chance Brazil might improve itself at all or is it so tied to | :05:10. | :05:11. | |
commodities that think there's a silver lining to | :05:12. | :05:18. | |
what we've been talking about especially in terms of the | :05:19. | :05:25. | |
corruption scandal and democracy, we are seeing Brazilians much more | :05:26. | :05:26. | |
interested in how the state is managing the tax money that | :05:27. | :05:33. | |
they are paying. That is why this corruption scandal is so important | :05:34. | :05:38. | |
for many Brazilians, many have taken to the streets demanding justice. | :05:39. | :05:42. | |
The interesting thing, something that sets Brazil apart from its | :05:43. | :05:47. | |
neighbours is that corruption allegations are being investigated, | :05:48. | :05:52. | |
the judiciary is independent, we are seeing a moderate improvement in the | :05:53. | :05:55. | |
strength of institutions in Brazil through the investigation of this | :05:56. | :05:59. | |
case and a case before it. There is a slight silver lining. | :06:00. | :06:03. | |
This is not good news for everyday Brazilians going out looking for a | :06:04. | :06:09. | |
job now but I think the company is looking to invest in Brazil, and | :06:10. | :06:13. | |
that is the answer to the country's problems investment, that will | :06:14. | :06:19. | |
return growth in the long term. The companies looking at the country, | :06:20. | :06:23. | |
this provides a silver lining because institutions are becoming | :06:24. | :06:26. | |
stronger. Very briefly, can Brazil bounce back from this? I think so, | :06:27. | :06:29. | |
eventually, we won't see it in 2016, we might see | :06:30. | :06:39. | |
very low growth in 2017 but I think that Brazil will remain the largest | :06:40. | :06:44. | |
market in the region. It is very difficult for any business | :06:45. | :06:48. | |
wanting to operate in Latin America not to have some form of | :06:49. | :06:52. | |
presence in Brazil, even if at the moment they may be | :06:53. | :06:54. | |
struggling with an increase in social unrest and political risk. | :06:55. | :07:00. | |
Thank you so much for joining us. the news about growth, or not, as | :07:01. | :07:09. | |
the case it be, we will update you. Let's move on. | :07:10. | :07:14. | |
The mining company Samarco has agreed to pay $1.1 billion | :07:15. | :07:16. | |
in damages following a major environmental disaster in Brazil. | :07:17. | :07:19. | |
In November, two of its dams ruptured - causing the mudslide that | :07:20. | :07:22. | |
destroyed the town of Mariana in southern Brazil and killed 19 | :07:23. | :07:24. | |
A new train station opens later on Thursday - | :07:25. | :07:27. | |
on the site of New York's World Trade Center. | :07:28. | :07:41. | |
A new train station opens later on Thursday - | :07:42. | :07:43. | |
on the site of New York's World Trade Center. | :07:44. | :07:52. | |
the cost has spiralled to more than $3.8 billion - | :07:53. | :07:54. | |
making it the most expensive railway station in the world. | :07:55. | :07:57. | |
Shares in Toshiba have closed 7% higher on reports the firm | :07:58. | :07:59. | |
is about to secure substantial new loans for its restructuring efforts. | :08:00. | :08:02. | |
The company is in talks with several Japanese lenders over raising funds | :08:03. | :08:05. | |
in the wake of a massive accounting scandal. | :08:06. | :08:07. | |
Let's take a look at the Live page on the BBC website - | :08:08. | :08:10. | |
and one story is dominating this morning - it's the comments | :08:11. | :08:13. | |
from the French economy minister - Emmanuel Macron. | :08:14. | :08:14. | |
We have them here. He says that France would | :08:15. | :08:16. | |
relocate its migrant camp from Calais to Britain and roll out the | :08:17. | :08:20. | |
red carpet for bankers fleeing if the UK leads the EU. He's headed to | :08:21. | :08:25. | |
a summit with various leaders and economy ministers will be meeting. | :08:26. | :08:27. | |
This is one of the key discussions going on in Europe with many | :08:28. | :08:32. | |
arguments for and against. We will cover some of them later. We will. | :08:33. | :08:39. | |
And the German finance minister will be speaking in London today, no | :08:40. | :08:42. | |
doubt giving his views on the EU question as well. | :08:43. | :08:46. | |
A day after Moody's cut China's outlook to negative, | :08:47. | :08:48. | |
the credit rating agency has now cut the outlook of 38 | :08:49. | :08:51. | |
Everyone will be looking to the China National People's | :08:52. | :08:58. | |
Congress this weekend to see what new stimulus measures | :08:59. | :09:00. | |
How worried are people about what is going on with the downgrades | :09:01. | :09:12. | |
it is part of an ongoing narrative that we have been hearing from | :09:13. | :09:20. | |
analysts in China over the last couple of months. | :09:21. | :09:22. | |
As you rightly say, the downgrade from Moody's yesterday on the | :09:23. | :09:29. | |
outlook of China took a lot of people by surprise. The fact that it | :09:30. | :09:35. | |
has downgraded its outlook on 38 state owned firms, including China's | :09:36. | :09:42. | |
largest firm in some of its banks, is going to deal a further blow to | :09:43. | :09:47. | |
the country's state owned enterprises sector. The outlook has | :09:48. | :09:51. | |
been reduced to negative from stable. This will also put pressure | :09:52. | :09:55. | |
on Beijing as it attempts to clean up its sector and reform what are | :09:56. | :10:00. | |
known as zombie films, massive companies that are living of debt | :10:01. | :10:05. | |
and struggling to stay alive. The problem is that these companies | :10:06. | :10:09. | |
employ millions of people, so if they are shut down, where do these | :10:10. | :10:15. | |
people go? It is a theme we have heard frequently recently and it | :10:16. | :10:19. | |
will be top of the agenda when China's leaders meet at the National | :10:20. | :10:23. | |
People's Congress this weekend. Thank you. Certainly a big focus at | :10:24. | :10:28. | |
the end of this week. All that news is not enough to tempt investors off | :10:29. | :10:30. | |
financial markets today. The yen has been weak in the last | :10:31. | :10:43. | |
few days. That has helped. Wall Street ended the day keeping hold of | :10:44. | :10:47. | |
the gains they made the day before. Let's look at Europe. Where we are | :10:48. | :10:52. | |
down slightly the fact that perhaps the appetite for risk is back. We've | :10:53. | :10:58. | |
got the price of oil going up, gold going down, safe havens like the yen | :10:59. | :11:02. | |
off the boil. That kind of sentiment seems to be on the market. First, | :11:03. | :11:11. | |
news of another story in the US. The man who helped to kick-start | :11:12. | :11:15. | |
America's sale revolution died in a car crash on Wednesday one day after | :11:16. | :11:20. | |
he was accused of conspiring to rig bids for oil and gas leases. The | :11:21. | :11:26. | |
former boss of Chesapeake Energy is credited with helping change the | :11:27. | :11:29. | |
energy world, yet controversial business practices helped cost him | :11:30. | :11:36. | |
his job. Hewlett-Packard enterprise which is made up of the hardware, | :11:37. | :11:42. | |
software and servers side of the business, turns in its first-quarter | :11:43. | :11:45. | |
earnings this Thursday. You may remember that last week HP | :11:46. | :11:52. | |
Incorporated, the business side of the company, reported decent | :11:53. | :11:55. | |
earnings, yet investors were not too happy with the company's outlook. | :11:56. | :12:01. | |
And has the largest books dare - book store chain in the US changed? | :12:02. | :12:10. | |
It is now selling toys online as it tries to compete with retailers like | :12:11. | :12:11. | |
Amazon. Joining us is Richard Dunbar, | :12:12. | :12:13. | |
Investment Director We will go through some market | :12:14. | :12:22. | |
stories. We have seen the biggest rise in the Asia-Pacific region in | :12:23. | :12:26. | |
terms of shares since August. I wonder if this rally is sustainable | :12:27. | :12:31. | |
or will it fade? Markets have been spooked in the last couple of months | :12:32. | :12:34. | |
about the US and we've seen better numbers from there. They've been | :12:35. | :12:39. | |
spooked by China, and things are not getting any worse there, and they've | :12:40. | :12:43. | |
been spooked by the oil price and we've seen some stability and that's | :12:44. | :12:48. | |
that it is encouraging to see more stability in markets, generally come | :12:49. | :12:54. | |
in Asia in particular, taking into consideration some of the currencies | :12:55. | :13:00. | |
which have been selling in the last few weeks. Interesting to see the | :13:01. | :13:04. | |
oil price rising and also metals like iron ore going up a lot. In | :13:05. | :13:11. | |
terms of what moves first, when things improve, like sentiment about | :13:12. | :13:15. | |
the global outlook for the global economy etc, what tends to give | :13:16. | :13:19. | |
signs first in markets that things are going to improve? Markets are | :13:20. | :13:26. | |
doing what they are meant to do, every day into the office I see a | :13:27. | :13:30. | |
mining company stating that it is reducing capital expenditure and | :13:31. | :13:34. | |
digging fewer holes and we will see less production. Similarly, we are | :13:35. | :13:38. | |
seeing better news from the US, which should fill demand for these | :13:39. | :13:42. | |
products, better demand or expectations thereof, and less | :13:43. | :13:47. | |
supply, so arise in metals prices, the invisible hand of the market is | :13:48. | :13:54. | |
doing its job. For once! Richard, thank you very much. We'll have you | :13:55. | :13:59. | |
and later to look at the newspapers. Still to come is brash US style law | :14:00. | :14:03. | |
coming to British shores? There is a gulf between the British legal | :14:04. | :14:08. | |
system and the one in the US. We will be talking to the boss of the | :14:09. | :14:14. | |
US law firm about how to take on big business here. You are watching | :14:15. | :14:16. | |
Business Live from BBC News. UK car workers at Rolls-Royce have | :14:17. | :14:24. | |
been sent an e-mail from German parent company BMW, highlighting | :14:25. | :14:27. | |
what it sees as the risks of a vote Meanwhile, Lord Rose, | :14:28. | :14:30. | |
the head of the campaign to keep Britain in the European Union, | :14:31. | :14:33. | |
suggests that wages of low skilled workers could rise in | :14:34. | :14:36. | |
the event of a Brexit. We knew the debate was going to get | :14:37. | :14:51. | |
more and more intense. Today is quite a big thing, isn't it? | :14:52. | :14:54. | |
That's right and it is achieving some focus. Both sides are looking | :14:55. | :15:00. | |
at exactly what the results would be of Britain leaving the EU. The | :15:01. | :15:04. | |
difficult part is nobody knows because it would be a question of | :15:05. | :15:09. | |
renegotiating Britain's position towards the EU. That is the | :15:10. | :15:13. | |
difficulty many companies face. What would that period of uncertainty be, | :15:14. | :15:18. | |
and for how long, and what would be the final result, would they gain a | :15:19. | :15:23. | |
preferential position, or not? That is the question. BMW has written to | :15:24. | :15:27. | |
its workers a Rolls-Royce explaining that it feels Britain would be | :15:28. | :15:31. | |
better inside the EU. It makes it plain to its workers that isn't a | :15:32. | :15:34. | |
decision to be handed out by the employer. What it is trying to say | :15:35. | :15:48. | |
to car companies and workers here is that it wants to stay part of it. | :15:49. | :15:58. | |
Many work very closely together. I should say, though, that there are | :15:59. | :16:03. | |
200 small companies, and I find this interesting, who are saying they | :16:04. | :16:08. | |
would like to leave the EU. These are British companies. Slightly | :16:09. | :16:11. | |
counterintuitive. You would imagine small companies would feel | :16:12. | :16:13. | |
particularly exposed. But in some cases what they resent is some of | :16:14. | :16:18. | |
the regulation they are forced accent as part of the EU. Some of | :16:19. | :16:23. | |
them presumably trade outside the EU and they feel they wouldn't have to | :16:24. | :16:26. | |
accent that if Britain were not within the trading block. -- forced | :16:27. | :16:34. | |
to act set -- accept. We have to wade through all of the | :16:35. | :16:42. | |
arguments before the referendum. This is dominoes results. They have | :16:43. | :16:45. | |
done really well and they think they have been helped by record cheese | :16:46. | :16:57. | |
prices. -- Domino's. INAUDIBLE | :16:58. | :16:59. | |
You're watching Business Live - our top story - we're bad news | :17:00. | :17:10. | |
-- You're watching Business Live - our top story - we're expecting more | :17:11. | :17:13. | |
bad news from Brazil, expected to confirm Latin America's | :17:14. | :17:15. | |
largest economy is slipping deeper into recession, | :17:16. | :17:17. | |
in 2015 at the steepest rate in more than two decades. | :17:18. | :17:21. | |
When we have that news, I'm sure it will be on the website, so check it | :17:22. | :17:24. | |
out. Now let's get the Inside Track | :17:25. | :17:25. | |
on the battle between When you think of class action | :17:26. | :17:27. | |
lawsuits, perhaps the US movie Erin Brockovich comes to mind - | :17:28. | :17:31. | |
ordinary citizens taking Or do you see ambulance chasers - | :17:32. | :17:33. | |
lawyers making a fast buck specialising in class actions, | :17:34. | :17:37. | |
often against big companies. The firm is currently involved | :17:38. | :17:49. | |
in anti-cartel litigation in the US against 12 banks, achieving | :17:50. | :17:52. | |
$809 million in settlements to date. The firm has just | :17:53. | :18:00. | |
opened their London office, in what they've described as "a move | :18:01. | :18:05. | |
to prepare for a possible European front in the forex battle | :18:06. | :18:07. | |
against the world's largest banks." With me now is the firm's managing | :18:08. | :18:12. | |
partner, David Scott. -- welcome to the programme. The | :18:13. | :18:28. | |
foreign exchange and the reading investigation going on right around | :18:29. | :18:32. | |
the world first. Libel has been tough to prove and it has been very | :18:33. | :18:35. | |
difficult litigation all over the world, why do you think Forex means | :18:36. | :18:43. | |
you will have a better chance of success? -- Libor has been tough. | :18:44. | :18:52. | |
Libor Has been tough. In the other case we allege that in addition to | :18:53. | :18:59. | |
fixing the 4pm fix, there was also a conspiracy to manipulate. One would | :19:00. | :19:03. | |
have been injured, regardless of what side of the trade you were on. | :19:04. | :19:09. | |
That is the difference between the two. | :19:10. | :19:13. | |
Just explain to those watching, you are representing who in this, and | :19:14. | :19:21. | |
who are you chasing for damages? In the US case we represent everybody | :19:22. | :19:26. | |
who has been impacted through the conspiracy fix foreign exchange. | :19:27. | :19:32. | |
Because of the mechanism, it means we represent everybody who was | :19:33. | :19:37. | |
trading. That, by default, is generally very large investing | :19:38. | :19:46. | |
companies. In the European slashed UK market, we are representing large | :19:47. | :19:54. | |
multinational pension schemes, large traders, who have been impacted | :19:55. | :19:58. | |
again by the alleged conspiracy. -- Europe/Uk market. Do you see a | :19:59. | :20:05. | |
difference in the level of litigation? When times are good | :20:06. | :20:09. | |
people do not sue each other as much. On some level there is a | :20:10. | :20:16. | |
correlation between what happened in 2008 and the drying up of the | :20:17. | :20:21. | |
market. What seems to me, at least, on almost a daily occurrence, some | :20:22. | :20:25. | |
new governmental investigation into financial institution misconduct. | :20:26. | :20:29. | |
You have the foreign exchange scandal, the Libor scandal, the | :20:30. | :20:35. | |
sovereign debt scandal... I think what happened was when it dried up | :20:36. | :20:43. | |
banks needed a new avenue in which to seek profit. Unfortunately a lot | :20:44. | :20:50. | |
of banks appear to have been engaging in conduct which is | :20:51. | :20:56. | |
questionable. To be clear, you will be going after the banks themselves, | :20:57. | :21:00. | |
the banks will argue it was individuals behaviour that we were | :21:01. | :21:06. | |
not aware of, we were not across, they were secretly doing what they | :21:07. | :21:11. | |
were doing. -- individuals' behaviour. How will you go about it? | :21:12. | :21:18. | |
If you look in the US, I believe four banks pleaded guilty to | :21:19. | :21:22. | |
anti-trust violations at the corporate level. The corporation | :21:23. | :21:26. | |
themselves has pleaded guilty to the conduct. Moreover I think it was the | :21:27. | :21:32. | |
FCA, in their report, they found a systemic failure to have policy and | :21:33. | :21:38. | |
procedures in place to prevent this type of conduct. In fact, some of | :21:39. | :21:43. | |
the employees were meeting with the compliance officers and general | :21:44. | :21:47. | |
counsel to ask if the conduct they were engaging in in chat rooms was | :21:48. | :21:51. | |
violating the internal policies within the corporation. To argue it | :21:52. | :22:01. | |
was rogue employees, I don't think really has... I don't think it has | :22:02. | :22:08. | |
legs to stand on. So interesting. We could keep talking about this, but | :22:09. | :22:12. | |
thank you very much, and best of luck with all of your cases. Thank | :22:13. | :22:17. | |
you very much. We will keep an eye on this, I'm sure it will be one | :22:18. | :22:19. | |
about stories again. If you were watching on Wednesday | :22:20. | :22:23. | |
as we analysed the results of Super Tuesday in the US - | :22:24. | :22:25. | |
the economics of Republican Donald Well today, we're taking | :22:26. | :22:28. | |
a look at the economic plans of Democrat Hilary Clinton | :22:29. | :22:32. | |
as the race towards the White House Jeremy Howell explains the thinking | :22:33. | :22:34. | |
behind "Clintonomics". Hillary Clinton says ordinary | :22:35. | :22:49. | |
American wage earners are disillusioned with the economic | :22:50. | :22:55. | |
system. Wage rises are scarce, jobs are insecure. She has a three | :22:56. | :22:59. | |
pronged strategy to restore their says in it. The first is a push for | :23:00. | :23:05. | |
strong economic growth. -- faith. She wants to improve America's | :23:06. | :23:09. | |
infrastructure including airports, roads, and bridges. She wants to | :23:10. | :23:13. | |
help more young people go to college by lowering their tuition costs. The | :23:14. | :23:19. | |
second problem is fair growth. She wants to increase the minimum wage | :23:20. | :23:25. | |
to $15 an hour. And she would impose a fair shares tax on people who earn | :23:26. | :23:32. | |
over $5 million a year. The third prong is long-term growth. She would | :23:33. | :23:38. | |
use the tax system to punish investors who hold shares only for a | :23:39. | :23:42. | |
short while, and reward those who hang onto them the long term. But | :23:43. | :23:46. | |
even by her own calculations, her new spending measures would cost $25 | :23:47. | :23:52. | |
billion a year more than her new taxes would raise. | :23:53. | :24:02. | |
Buber has big plans for the world. -- Uber. If the chief executive is | :24:03. | :24:15. | |
to leave, which I think you will, they could be losing even more | :24:16. | :24:20. | |
money. It talks to the ambition and the scale of the ambition of Uber. | :24:21. | :24:26. | |
They are hated by those with whom they compete. Is it sustainable if | :24:27. | :24:34. | |
their expansion plans are as big as they say they are, and we don't | :24:35. | :24:38. | |
doubt that, and yet the money is going out extremely fast, how will | :24:39. | :24:42. | |
it continue? Will it get some people who believe in them? It isn't | :24:43. | :24:49. | |
sustainable. Companies have to make profit and generate cash. That will | :24:50. | :24:54. | |
have to come. Looking at their accounts, it seems they are able to | :24:55. | :24:57. | |
attract significant equity capital investors. And they are able to | :24:58. | :25:03. | |
attract very significant debt from the banks. They are able to finance | :25:04. | :25:07. | |
it. The scale of ambition is clear when you look at the results. A | :25:08. | :25:11. | |
force to be reckoned with. Keep your eyes on Uber. It has been great to | :25:12. | :25:18. | |
have you on the programme. And thank you for your company. As ever, there | :25:19. | :25:22. | |
is a lot more going on in business which we don't have time to mention | :25:23. | :25:26. | |
in the programme. Do have a look at the website. | :25:27. | :25:29. | |
There will be more business news throughout the day on the BBC Live | :25:30. | :25:34. | |
web page and on World Business Report. | :25:35. | :25:50. | |
After another cold start, Thursday will be a half reasonable day for | :25:51. | :25:57. | |
most. Fewer showers than yesterday and the winds will be lighter. For | :25:58. | :26:02. | |
that we have to thank the fact this area of low pressure which gave us | :26:03. | :26:03. |