Browse content similar to 15/04/2016. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
This is Business Live from BBC News with Alice Baxter | :00:11. | :00:13. | |
China's mighty engine is losing steam - the Asian giant | :00:14. | :00:16. | |
reports the weakest growth since the financial crisis in 2009. | :00:17. | :00:18. | |
Live from London, that's our top story on Friday 15th April. | :00:19. | :00:44. | |
China's economy expanded at an annual rate of 6.7% | :00:45. | :00:46. | |
in the first three months of this year - better than many | :00:47. | :00:49. | |
developed economies - but too weak for this Asian might. | :00:50. | :00:52. | |
the fallout from BP's dramatic shareholder revolt as a $20 million | :00:53. | :00:58. | |
pay package for the boss Bob Dudley is rejected. | :00:59. | :01:01. | |
But will it change the way executive pay is agreed? | :01:02. | :01:03. | |
And we'll keep you up to speed with the markets. | :01:04. | :01:08. | |
Global stocks pretty mixed on Friday as investors await the outcome | :01:09. | :01:10. | |
And we'll be getting the inside track on a pact to share | :01:11. | :01:19. | |
information by the five largest economies in the EU in the wake | :01:20. | :01:23. | |
of the Panama Papers leak with our guest editor Andrew Walker. | :01:24. | :01:32. | |
And so on that note, we want to know, do you think Russia | :01:33. | :01:35. | |
and France will play ball and share their | :01:36. | :01:37. | |
Would you share your tax information? | :01:38. | :01:39. | |
We start in China with the slowdown in the world's number two economy. | :01:40. | :02:01. | |
The latest growth figures show the weakest growth | :02:02. | :02:04. | |
numbers since 2009 - since the financial crisis. | :02:05. | :02:06. | |
In the first three months of this year, | :02:07. | :02:14. | |
China's economy expanded at an annual rate of 6.7%. | :02:15. | :02:20. | |
That's down from the 6.8% we saw in the last three months of 2015. | :02:21. | :02:23. | |
This chart shows growth since the 1980s. | :02:24. | :02:26. | |
From 2000, you can see the boom which boosted | :02:27. | :02:28. | |
the whole world's economy - followed by a sharp slowdown. | :02:29. | :02:34. | |
China's facing an array of challenges. | :02:35. | :02:38. | |
From weak global demand for its products | :02:39. | :02:40. | |
But at home, it's become too reliant on huge, | :02:41. | :02:48. | |
inefficient state run firms, often called Zombie Companies. | :02:49. | :02:52. | |
Some six million jobs will need to be cut over the next few years. | :02:53. | :02:56. | |
This week the International Monetary Fund called China one | :02:57. | :02:58. | |
of the biggest threats to global financial stability. | :02:59. | :03:00. | |
In particular, Chinese firms that are struggling to pay their debts. | :03:01. | :03:02. | |
That could be a huge ticking time bomb. | :03:03. | :03:04. | |
The IMF says loans worth almost $1.3 trillion | :03:05. | :03:06. | |
I'm joined by Jinny Yan, Chief China Economist at ICBC | :03:07. | :03:26. | |
Standard Bank and also by our Asia Business Correspondent, | :03:27. | :03:28. | |
Thanks for coming in. Karishma, you have been looking at this over | :03:29. | :03:44. | |
there. And every time we get numbers out of Beijing, the big question is, | :03:45. | :03:50. | |
can we trust those numbers? That is what everyone always asks, as you | :03:51. | :03:57. | |
say, when these sorts of figures come out of Beijing. And certainly, | :03:58. | :04:00. | |
it is very much in line with what the market was expecting. Analysts | :04:01. | :04:06. | |
said that growth should come anywhere between 6.6 and 6.8%. | :04:07. | :04:10. | |
Even the Chinese Communist Party, the National People's Congress, when | :04:11. | :04:17. | |
they laid out their plans for the economy, they said that growth | :04:18. | :04:19. | |
should come in between 6.5% and almost as if these figures have been | :04:20. | :04:31. | |
plucked from the minds of Beijing officials themselves. But a lot of | :04:32. | :04:35. | |
questions being asked about how real these figures are and whether there | :04:36. | :04:39. | |
is a more protracted slowdown on the ground and how sustainable this sort | :04:40. | :04:42. | |
of growth is for the Chinese economy. | :04:43. | :04:44. | |
where you are. Jinny, can I ask you this, is China addicted to stimulus? | :04:45. | :04:53. | |
I think the world is addicted to China. | :04:54. | :04:56. | |
To China having high growth. I think the world very much needs China to | :04:57. | :05:01. | |
be strong at the moment. The reason for growth in the rest of the world | :05:02. | :05:04. | |
is not very clear at the moment. think a strong China is very good | :05:05. | :05:11. | |
for the rest of the world, particularly emerging economies. So | :05:12. | :05:17. | |
it is not very clear what is behind the growth for the rest of the | :05:18. | :05:20. | |
world? What is behind the growth in the numbers for China? What we see, | :05:21. | :05:28. | |
the real news is not really the headlines. 6.7%, everyone was | :05:29. | :05:34. | |
expecting that. That is not the story, the story is that other | :05:35. | :05:39. | |
official statistics, investment and production, those beat economic | :05:40. | :05:44. | |
forecasts. That is actually a very strong trend. What we need to be | :05:45. | :05:48. | |
concerned about is what lies beneath that. And of course we are going | :05:49. | :05:50. | |
back into the traditional model of growth, pumping credit from the | :05:51. | :05:58. | |
banks, and also infrastructure, government spending. This is how | :05:59. | :06:01. | |
China grows and this is how they know to grow their economy. But | :06:02. | :06:06. | |
China is very much trying to rebalance that towards consumption. | :06:07. | :06:07. | |
But that seems to be taking a bit of a back | :06:08. | :06:13. | |
seat for the moment. Jinny, is trying on | :06:14. | :06:14. | |
toll of 6.5%? -- is China on course. How big a problem is corporate debt | :06:15. | :06:21. | |
answer, 6.5% is achievable. I think the government will do a lot and the | :06:22. | :06:31. | |
government has a lot of physical power to be able to achieve that | :06:32. | :06:37. | |
growth. On the corporate debt story, that is a key | :06:38. | :06:39. | |
This is a problem that China is trying to solve. A lot of that | :06:40. | :06:49. | |
corporate debt, 160% of GDP, is sitting on banks' balance sheets. | :06:50. | :06:52. | |
them, and if the government needs to step in with a capital injection, it | :06:53. | :07:03. | |
may ultimately have to. And some of those state owned enterprises... Can | :07:04. | :07:04. | |
I just bringing Karishma back in? On the debt, we | :07:05. | :07:06. | |
talked about this could be a possible default. Can | :07:07. | :07:23. | |
China handle that kind of some? Well, what we have been witnessing | :07:24. | :07:27. | |
is a 30 year miracle of economic growth in China, and that proves | :07:28. | :07:30. | |
that China can pretty much handle whatever it says it wants to handle. | :07:31. | :07:32. | |
Don't forget, Beijing officials always points to the fact that China | :07:33. | :07:34. | |
has a massive that is one of the big buffers to | :07:35. | :07:44. | |
these problems. It also points to the fact that it is trying to reform | :07:45. | :07:49. | |
the economy, as Jinny points out, but this level of debt, pumping | :07:50. | :07:53. | |
money into the system and creating this economic growth figure that we | :07:54. | :07:58. | |
have seen, how sustainable is that going forward? Because it can only | :07:59. | :08:04. | |
produce growth for a period of time. And that is the big concern over the | :08:05. | :08:09. | |
next couple of years. But Karishma, with growth still the | :08:10. | :08:11. | |
China, very briefly, might we see that a rebalancing within the | :08:12. | :08:18. | |
economy taking a back-seat? Indeed. And I think we are seeing | :08:19. | :08:26. | |
sides of that. This is a difficult political issue | :08:27. | :08:27. | |
for the government. Don't forget, a lot of what the Chinese economic | :08:28. | :08:31. | |
on is that stability, the idea that people will not have massive job | :08:32. | :08:41. | |
losses. We have been hearing about the massive | :08:42. | :08:45. | |
steel and coal services... Industries. Thank you very much to | :08:46. | :08:50. | |
you both. In other news, the five largest | :08:51. | :08:52. | |
European economies have agreed to work together to try | :08:53. | :09:05. | |
to combat tax evasion - urging other countries | :09:06. | :09:07. | |
to follow their example. The UK has joined France, | :09:08. | :09:09. | |
Germany, Italy and Spain in agreeing to share information | :09:10. | :09:12. | |
about the secret owners of businesses and trusts who hide | :09:13. | :09:13. | |
behind so-called 'shell companies'. The deal, announced | :09:14. | :09:16. | |
at the International Monetary Fund meeting in Washington, | :09:17. | :09:18. | |
comes in the wake of the tax Microsoft is suing the US government | :09:19. | :09:20. | |
over the right to tell its users when federal agencies want access | :09:21. | :09:27. | |
to private data. It says keeping access requests | :09:28. | :09:34. | |
secret is against the US constitution, which states that | :09:35. | :09:36. | |
individuals should be made aware if the government searches | :09:37. | :09:38. | |
or seizes their property. BP shareholders have rejected | :09:39. | :09:48. | |
a pay package of almost $20 million for chief | :09:49. | :09:50. | |
executive Bob Dudley at the oil Just over 59% of investors rejected | :09:51. | :09:52. | |
Mr Dudley's 20% pay increase - which came despite record losses | :09:53. | :09:56. | |
and thousands of job cuts. It is one of the largest rejections | :09:57. | :10:01. | |
to date of a corporate The vote is non-binding on BP, | :10:02. | :10:04. | |
but the company's chairman has We are having a quick look at the | :10:05. | :10:36. | |
BizLive website. Car sales up across Europe, not a good story. | :10:37. | :10:42. | |
Volkswagen, if you read the tablet, is down. Down by 1.6%. Despite the | :10:43. | :10:51. | |
UK buying the highest number of VW cars | :10:52. | :10:57. | |
since the uproar over that scandal. And the other one you | :10:58. | :10:59. | |
wanted to highlight? Sales are up at the world's | :11:00. | :11:06. | |
retailer, Carrefour, after robust sales in Spain and Italy. | :11:07. | :11:22. | |
Let's take a look at what is happening around the world, | :11:23. | :11:25. | |
kicks off its spring meeting on Friday. Finance | :11:26. | :11:32. | |
leaders have been gathering in Washington, DC this week. | :11:33. | :11:36. | |
High on the agenda, concerns over the global economy as well as | :11:37. | :11:40. | |
possible risks of the UK exiting from the EU, known as a Brexit. | :11:41. | :11:47. | |
Meanwhile, we will also find out how American | :11:48. | :11:48. | |
consumers have been feeling lately when the latest figure for April | :11:49. | :11:53. | |
gets released. And it is expected that they have been feeling slightly | :11:54. | :11:57. | |
better thanks to steady hiring in the labour market. And of course the | :11:58. | :12:02. | |
earnings season continues, with another banking | :12:03. | :12:03. | |
giant, Citigroup, reporting its results for the first three months | :12:04. | :12:06. | |
of this year. So far its rivals, such as JP Morgan | :12:07. | :12:13. | |
and Bank of America, have all managed to surprise the market with | :12:14. | :12:15. | |
slightly better-than-expected results. But you have to remember | :12:16. | :12:20. | |
that investors have been expecting the | :12:21. | :12:21. | |
worst quarter since the financial crisis, so it is the case of under | :12:22. | :12:26. | |
promising and over performing. Well, let's move to Asian now | :12:27. | :12:30. | |
where stocks are fairly subdued on Friday as investors digest | :12:31. | :12:32. | |
China's slowing but relatively upbeat GDP numbers, | :12:33. | :12:38. | |
which were in line Meanwhile here in Europe, | :12:39. | :12:40. | |
after a buoyant few days lead by a surge in crude prices, | :12:41. | :12:50. | |
markets have opened pretty flat - holding their breath before a key | :12:51. | :12:53. | |
weekend meeting of oil producers - lead by Saudi Arabia | :12:54. | :12:56. | |
and Russia to discuss The FTSE 100, fairly flat at the | :12:57. | :12:58. | |
open. We are joined by Jane Sydenham, | :12:59. | :13:07. | |
Investment Director, A familiar face to us all. Let's | :13:08. | :13:12. | |
stay with the subject of oil and the | :13:13. | :13:21. | |
markets. Not so much today but oil has had a bit of a surge and the | :13:22. | :13:23. | |
markets have been that upward swing. It has had quite | :13:24. | :13:29. | |
an effect. The oil majors have had a good run this week, feeling that | :13:30. | :13:33. | |
perhaps finally the market is stabilising. | :13:34. | :13:34. | |
This meeting at the weekend is going to be quite interesting though I do | :13:35. | :13:39. | |
not think we are expecting that it will make a huge difference to the | :13:40. | :13:41. | |
supply of oil. But for the first time in months and months, we might | :13:42. | :13:43. | |
have a sense that maybe there is some discipline | :13:44. | :13:46. | |
coming back into the market. That is what we are looking for. Can | :13:47. | :13:55. | |
we switch gears? Nice little entry there, by the way. Every mistake | :13:56. | :13:59. | |
that goes on here, I pick it up! I was just going to mention, crude | :14:00. | :14:07. | |
prices, we saw this spike in equity earlier this week. Was that a case | :14:08. | :14:12. | |
of markets taking their lead from what we saw happen to the crude | :14:13. | :14:14. | |
price? Definitely. It was a downward force | :14:15. | :14:20. | |
over the last few months, the sense that maybe to some extent it is | :14:21. | :14:21. | |
good for consumers, if the prices for oil, but it is bad for stocks. | :14:22. | :14:28. | |
-- if the prices fall. There is less demand in China for | :14:29. | :14:37. | |
crude and commodities, so the sense of stabilisation is quite important. | :14:38. | :14:39. | |
Mariko was mentioning it, but boy, what a difference a | :14:40. | :14:52. | |
years can -- a year can make. 2016, pretty | :14:53. | :14:57. | |
dismal, although 2015 was cracking. What is behind the change? To some | :14:58. | :15:03. | |
extent, China. China is affecting growth around the world and the | :15:04. | :15:06. | |
manufacturing part of most economies is performing brulee, even though | :15:07. | :15:12. | |
services are doing well. That has affected all the major economies, we | :15:13. | :15:13. | |
have seen a lot of for European companies coming down. | :15:14. | :15:20. | |
A lot of those companies, to some extent, | :15:21. | :15:23. | |
are under promising. 2-wood will be interesting to see if the earnings | :15:24. | :15:29. | |
are as bad as expected. To some extent in the US, the strong dollar | :15:30. | :15:32. | |
has been a worry because companies will be affected by that to some | :15:33. | :15:37. | |
extent. If we see slightly better earnings, that would be good for the | :15:38. | :15:39. | |
markets. Still to come, spring | :15:40. | :15:42. | |
is in the air, the cherry blossom is in full bloom - | :15:43. | :15:49. | |
so why such glum faces at the IMF and World Bank | :15:50. | :15:52. | |
meetings in Washington? We'll tell you why - | :15:53. | :15:54. | |
global economic jitters, headwinds from China | :15:55. | :15:56. | |
and the damaging fallout You're with Business | :15:57. | :15:58. | |
Live from BBC News. He's a game changer on the pitch | :15:59. | :16:04. | |
and is now hoping to change Arsenal footballer turned | :16:05. | :16:09. | |
entrepreneur Mathieu Flamini has been pioneering research | :16:10. | :16:15. | |
into an alternative to oil With his business partner | :16:16. | :16:18. | |
he co-founded GF Biochemicals, which is the first company to mass | :16:19. | :16:28. | |
produce Levulinic Acid, which is said to be able to replace | :16:29. | :16:30. | |
oil in all its forms - it could potentially | :16:31. | :16:34. | |
be used as a bio fuel or to make pharmaceuticals, | :16:35. | :16:36. | |
plastics, cosmetics and even Tanya Beckett began | :16:37. | :16:40. | |
by asking how it works. It is acid which reacts | :16:41. | :16:48. | |
exactly like oil. That means you can substitute oil | :16:49. | :16:52. | |
in traditional products. And obviously you have | :16:53. | :16:57. | |
patented the technology We have appropriate technology | :16:58. | :17:02. | |
that we developed eight years ago. The company was created eight years | :17:03. | :17:10. | |
ago in Italy. We started the production in 2015 | :17:11. | :17:14. | |
and today we are entering the market, increasing our | :17:15. | :17:21. | |
production to 10,000 tonnes. That is obviously a relatively small | :17:22. | :17:24. | |
amount compared to the whole market. How is it that you got started | :17:25. | :17:29. | |
in investing in this business? I moved to Milan eight years ago | :17:30. | :17:33. | |
to play for AC Milan. At the time we were already very | :17:34. | :17:36. | |
interested in climate change. So we created this opportunity | :17:37. | :17:43. | |
by meeting with a scientist and together we developed | :17:44. | :17:53. | |
this bio technology. What skills do you | :17:54. | :17:55. | |
bring to the table? For the operation we have a very | :17:56. | :17:58. | |
strong team on the field. I'm more focused on the | :17:59. | :18:09. | |
strategy of the company. Also what helps a lot is my business | :18:10. | :18:13. | |
partner who is on He is dealing with the day-to-day | :18:14. | :18:16. | |
operation. How have you managed to get sport | :18:17. | :18:18. | |
and business to mix? I want to make clear something, | :18:19. | :18:24. | |
my priority is football, But as you can imagine, | :18:25. | :18:26. | |
all players have other interests outside the pitch | :18:27. | :18:31. | |
and my interest is the bio economy. You're watching Business Live - | :18:32. | :18:42. | |
our top story - China's economy grew at an annual rate of 6.7% | :18:43. | :18:45. | |
in the first three months of this year - | :18:46. | :18:48. | |
better than many developed economies And now let's get the inside | :18:49. | :18:54. | |
track on a busy week Our economics correspondent | :18:55. | :18:58. | |
Andrew Walker joins us now. But let's start with a story making | :18:59. | :19:07. | |
headlines at the IMF and World Bank. They are going to share sensitive | :19:08. | :19:30. | |
information, these five countries? Yes, I think so, if they can | :19:31. | :19:33. | |
establish the owners of these so-called shell companies who are | :19:34. | :19:41. | |
used to hide their high earnings from the tax companies, they say | :19:42. | :19:44. | |
they will share that information with each other. It is five | :19:45. | :19:49. | |
countries. They want the rest of the G20 to take up the baton and do the | :19:50. | :19:58. | |
same thing. This is a battle with the tax authorities? Yes, where they | :19:59. | :20:03. | |
have the information about who benefits from a company whether they | :20:04. | :20:08. | |
are the formal legal owner of it, they will share that information | :20:09. | :20:12. | |
with each other. Was this on the agenda? Or is this because of the | :20:13. | :20:23. | |
Panama leaks? The IMF meetings, there is much going on in the | :20:24. | :20:27. | |
sidelines, this was not formal IMF business as such, but no question | :20:28. | :20:33. | |
there is a desire to be seen to be doing something rapidly in response | :20:34. | :20:36. | |
to the panama papers. We have spoken about the impact of rising prices on | :20:37. | :20:44. | |
crude oil, there is the key meeting of oil producers this weekend, and | :20:45. | :20:49. | |
key people not attending, as well. We have two very large oil producers | :20:50. | :20:54. | |
not there, the United States and China, although they are producers, | :20:55. | :20:59. | |
they also very large importers, so on balance they tend to do better | :21:00. | :21:03. | |
from a low oil price. They would not want to be seen to be propping the | :21:04. | :21:09. | |
price up, but there is no question we have got Opec, probably all of | :21:10. | :21:15. | |
Opec, which includes Saudi Arabia and Iran, but some suggestion the | :21:16. | :21:21. | |
Iranian minister will not be there in person, sending one of his | :21:22. | :21:25. | |
officials instead. Russia, Kazakhstan, Mexico. If they can | :21:26. | :21:30. | |
agree to do something, that is a substantial chunk of the world oil | :21:31. | :21:36. | |
market. Two points I want to make. We hear that may be they will freeze | :21:37. | :21:43. | |
production at January levels, those levels were already record high. | :21:44. | :21:48. | |
Iran is just back and it would like to build its output up to the | :21:49. | :21:53. | |
pre-sanctions time of something like four million and it needs the money. | :21:54. | :21:58. | |
They do, they feel very strongly that they are entitled to reclaim | :21:59. | :22:03. | |
the market share they lost as a result of sanctions. There have been | :22:04. | :22:08. | |
conflicting signals from Saudi Arabia about whether they would not | :22:09. | :22:13. | |
be prepared to do some sort of freeze without Iran taking part. The | :22:14. | :22:18. | |
deputy crown prince said that they would not, but I think Mosby both | :22:19. | :22:22. | |
think that is not the last word from them on it, and the signs are that | :22:23. | :22:25. | |
they will be prepared to make an exception for Iran -- but I think | :22:26. | :22:33. | |
most people think. It would be no more than a phrase, as you said, but | :22:34. | :22:38. | |
the prize is now 50% above the low it reached in January -- no more | :22:39. | :22:44. | |
than a freeze. It is about $43, something like that, for Brent, | :22:45. | :22:52. | |
compared to 27, in January, and the high reflects the expectation that | :22:53. | :22:55. | |
there might be at least a freeze agreed, but the longer-term context, | :22:56. | :22:59. | |
it was less than two years was $115, so a good deal less than | :23:00. | :23:06. | |
half the peak it reached. Andrew, thanks for joining us. | :23:07. | :23:16. | |
In a moment we have the business pages. | :23:17. | :23:24. | |
But first here's a quick reminder of how to get in touch with us. | :23:25. | :23:28. | |
We can keep you up-to-date with all the latest details with insight and | :23:29. | :23:37. | |
analysis from the BBC team of editors and analysts from around the | :23:38. | :23:42. | |
world. You can get involved with the BBC business web page. You can find | :23:43. | :23:52. | |
us on Twitter and Facebook. Business live, on TV and online, whenever you | :23:53. | :23:54. | |
need to know. What other business | :23:55. | :23:56. | |
stories has the media been Joining again us is Jane Sydenham, | :23:57. | :23:59. | |
Investment Director, We have found this story. In the | :24:00. | :24:09. | |
Financial Times. We could not avoid it. The fallout of this shareholder | :24:10. | :24:19. | |
revolt of BP shareholders, voting in huge numbers against Bob Dudley's | :24:20. | :24:26. | |
20% pay rise. It is a complex issue, it is true that he can't be blamed | :24:27. | :24:32. | |
for the level of the oil price and BP went into loss last year because | :24:33. | :24:36. | |
it was paying out in relation to the deepwater horizon disaster. On the | :24:37. | :24:41. | |
other hand, the absolute level of his pay and the multiple compared to | :24:42. | :24:49. | |
the average pay for a BP employee. The force of this vote against this | :24:50. | :24:53. | |
kind of pay package, does this mark a turning point? I think it does, | :24:54. | :25:01. | |
actually. 60% vote against is quite something and in the past we simply | :25:02. | :25:06. | |
have not seen that kind of level of protest and I think shareholders are | :25:07. | :25:09. | |
becoming more activist and they are thinking about shareholder | :25:10. | :25:14. | |
responsibility, it is a good thing. We only have 30 seconds. Microsoft | :25:15. | :25:20. | |
suing the Justice Department? Another Civil Liberties action on | :25:21. | :25:28. | |
behalf of tech companies, Apple are doing the same, Microsoft are | :25:29. | :25:32. | |
concerned that the bar for what is a reasonable request for privacy is | :25:33. | :25:36. | |
just too low. Consumers should know if their phone is being looked at by | :25:37. | :25:41. | |
the government? Absolutely. There is a big increase, the US Justice | :25:42. | :25:49. | |
Department looking at this. Yes. Jane, thanks for joining us. | :25:50. | :25:52. |