Browse content similar to 02/08/2016. 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 | :00:00. | :00:07. | |
You're out - South Korea orders Volkswagen to sling its hook | :00:08. | :00:11. | |
as Asia's fourth largest economy tells the German car-maker | :00:12. | :00:15. | |
it can no longer sell its products in the country. | :00:16. | :00:19. | |
Live from London, that's our top story on Tuesday the 2nd of August. | :00:20. | :00:38. | |
South Korea has suspended sales of eighty Volkswagen vehicle models | :00:39. | :00:41. | |
and fined it millions of dollars, alleging that the German company | :00:42. | :00:43. | |
fabricated documents on emissions and noise levels. | :00:44. | :00:49. | |
Also in the programme - China's state-run news agency says | :00:50. | :00:51. | |
more delays over the Hinkley Point nuclear power station is harming | :00:52. | :00:54. | |
Could it lead to China pulling the plug on tens of billions | :00:55. | :00:59. | |
In the first half-hour, the markets look like this. | :01:00. | :01:12. | |
And after yesterday's poor manufacturing numbers - today's | :01:13. | :01:14. | |
And they're not likely to be too hot, either. | :01:15. | :01:19. | |
That is following what we heard yesterday from manufacturing. | :01:20. | :01:23. | |
Hotels, motels and hostels are hitting back - | :01:24. | :01:25. | |
trying to lure the young lucrative millennial generation away | :01:26. | :01:27. | |
We'll be talking to one company about how they're doing it. | :01:28. | :01:34. | |
And as a new report suggests self-driving cars could give a boost | :01:35. | :01:37. | |
to the bar and restaurant industry, we want to know, | :01:38. | :01:40. | |
would having your own self-driving car encourage you to drink | :01:41. | :01:43. | |
I think it is just working here that encourages us to drink more! | :01:44. | :02:10. | |
Nonetheless, let us know at the hashtag #BBCBizLive. | :02:11. | :02:11. | |
Following Volkswagen's involvement in the diesel emissions scandal, | :02:12. | :02:14. | |
the South Korean government has taken the unprecedented step | :02:15. | :02:16. | |
of suspending sales of certain models of VW cars. | :02:17. | :02:19. | |
The country's Environment Ministry has accused the business of forging | :02:20. | :02:22. | |
documents on emissions and noise-level tests. | :02:23. | :02:28. | |
The move will affect 80 models in total - | :02:29. | :02:30. | |
Volkswagen branded cars, but Audis and Bentleys produced | :02:31. | :02:33. | |
The suspension could prove to be a major setback in one of VW's | :02:34. | :02:39. | |
Group sales in South Korea have increased three-fold over the past | :02:40. | :02:44. | |
five years, and although the country still only forms a small percentage | :02:45. | :02:47. | |
of total Volkswagen sales, the suspension poses a threat | :02:48. | :02:50. | |
to the brand's reputation in neighbouring China. | :02:51. | :03:02. | |
Stephen, great to see you, as always. Simple question, why now, | :03:03. | :03:19. | |
why this action by the South Korean Government now? Because the wheels | :03:20. | :03:25. | |
of the law grind exceedingly slow. Basically, this all goes back to | :03:26. | :03:31. | |
last autumn when the faking of results by Volkswagen emerged. There | :03:32. | :03:37. | |
have been settlements in the US. South Korea got the legal process in | :03:38. | :03:43. | |
place with the investigation of whether import documents, for | :03:44. | :03:49. | |
example, were accurate. It has proceeded to finger the collars of | :03:50. | :03:53. | |
executives for Volkswagen in South Korea. It has been very vigorous. | :03:54. | :03:57. | |
It's now gets to the stage where it feels as if it has had hearings | :03:58. | :04:03. | |
about the whole event and we have not had satisfactorily answers, | :04:04. | :04:09. | |
therefore we are suspending these permits. You might say, sceptics | :04:10. | :04:14. | |
might say that South Korea has got big car companies of its own, the | :04:15. | :04:21. | |
vigour of its response is because of that. Obviously the authorities are | :04:22. | :04:26. | |
not saying that. People in Germany might think that. What the | :04:27. | :04:31. | |
authorities believe is that it is a very serious matter. Volkswagen was | :04:32. | :04:35. | |
caught at it and it should pay a penalty. What do we know about the | :04:36. | :04:43. | |
timing of how long this ban or suspension will go one fall? It is | :04:44. | :04:51. | |
indeterminate. It will depend on when Volkswagen can assure the | :04:52. | :04:55. | |
authorities that the new cars being sold meet the required standard. In | :04:56. | :05:02. | |
terms of that there are disputes with people who bought the car, as | :05:03. | :05:07. | |
there are a new rep and the US, even more particularly. -- as there are | :05:08. | :05:19. | |
in Europe and the US. We simply do not know, that is the tantalising | :05:20. | :05:25. | |
part. We will leave it there, but thank you for joining us. | :05:26. | :05:27. | |
China says it will not tolerate unwanted accusations | :05:28. | :05:29. | |
about its investments in the UK after the delay of the Hinkley | :05:30. | :05:32. | |
Those comments came from the country's state-run news | :05:33. | :05:35. | |
agency which said it could not understand the suspicious approach | :05:36. | :05:38. | |
It follows reports suggesting the UK Prime Minister stepped in to review | :05:39. | :05:44. | |
the deal over concerns for national security given China's | :05:45. | :05:46. | |
Amit Pau is with us, he's a managing director | :05:47. | :05:56. | |
at the investment firm Ariadne Capital. | :05:57. | :06:06. | |
I could not pronounce that, I should have looked at that first! You kind | :06:07. | :06:15. | |
of go, oh, gee, with Brexit around the corner, I just wonder if the | :06:16. | :06:20. | |
British Government needs to tread very carefully with some of their | :06:21. | :06:24. | |
words. When Britain is out of the European Union, surely to goodness | :06:25. | :06:28. | |
Britain will be looking at China going, can you help us, we want to | :06:29. | :06:32. | |
trade with you. You don't want to do the dirty on China now? The decision | :06:33. | :06:39. | |
on Hinkley is really strategic, so it needs to be considered. But | :06:40. | :06:44. | |
changing mind at the last minute has huge ramifications on a global | :06:45. | :06:49. | |
basis. Focusing on China, the golden era of China/ UK relationships is in | :06:50. | :06:53. | |
question. The rhetoric that the UK Government, Mr Timothy, Prime | :06:54. | :07:00. | |
Minister May's Senior adviser, has not been helping. Investment into UK | :07:01. | :07:06. | |
from China has increased tenfold in the last five years. By 2020, the | :07:07. | :07:11. | |
Chinese plans to invest ?101 billion the UK economy. Hinkley alone would | :07:12. | :07:21. | |
have equated 25,000 jobs. Can we afford to make such decisions? Also | :07:22. | :07:26. | |
the way it has been communicated post-Brexit, I would say no. There | :07:27. | :07:31. | |
is no debate about why the investment is needed, I suppose the | :07:32. | :07:35. | |
question is whether it is welcome. Some would say that Theresa May was | :07:36. | :07:39. | |
doing the right thing, the British prime ministers says, this deal was | :07:40. | :07:42. | |
done under the previous leadership, I will simply look down, look at the | :07:43. | :07:46. | |
fine detail and come up with a decision later in the year. You | :07:47. | :07:51. | |
would expect that? Firstly, this is such an important decision it needs | :07:52. | :07:52. | |
to be done in a considered manner, so the new | :07:53. | :08:10. | |
Prime Minister has the right to review it, no doubt. But in her last | :08:11. | :08:13. | |
role as Home Secretary, she raised questions on national security, it | :08:14. | :08:15. | |
is really questionable. If it is correct, when you want to send a | :08:16. | :08:18. | |
message to the global economy, there is language in some of the rhetoric | :08:19. | :08:23. | |
shared by the UK Government. Thank you very much for speaking to us. We | :08:24. | :08:25. | |
appreciate your time. In other news, the Reserve Bank | :08:26. | :08:27. | |
of Australia has cut interest rates Weak wages and a strong currency | :08:28. | :08:30. | |
are causing inflation to fall The central bank hopes the move will | :08:31. | :08:34. | |
boost the country's jobs market. We will talk about this story more | :08:35. | :08:45. | |
later. Here he is. Japan's Prime Minister, | :08:46. | :08:48. | |
Shinzo Abe, is expected to announce further details | :08:49. | :08:50. | |
of the government's It's thought a significant amount | :08:51. | :08:52. | |
will be set aside to build long-term We are talking about 270 billion | :08:53. | :09:10. | |
dollars. It will be the biggest stimulus since the financial crisis | :09:11. | :09:13. | |
of 2009. The Japanese government said in the last 15 or 20 minutes | :09:14. | :09:18. | |
that they hope to boost gross domestic product by about 1.3%. Will | :09:19. | :09:23. | |
it work? We will find out. US electric carmaker Tesla says it's | :09:24. | :09:26. | |
reached a deal to buy solar panel The deal, announced in June, | :09:27. | :09:29. | |
will expand Tesla's Tesla chief executive Elon Musk | :09:30. | :09:32. | |
already owns 22% of SolarCity SolarCity's chief executive | :09:33. | :09:37. | |
and Mr Musk are cousins. Keeping it in the family! | :09:38. | :09:58. | |
Let's look at the life page. You have to be related to do business | :09:59. | :10:02. | |
these days, clearly. I just hope they don't fall out. | :10:03. | :10:09. | |
Lots of families do! Love Tanzer, the German national | :10:10. | :10:12. | |
carrier, its boss says they will pay out, pays dividends. -- Lufthansa, | :10:13. | :10:25. | |
the German national carrier. Like many legacy European carriers, | :10:26. | :10:29. | |
Lufthansa are struggling with the mighty Gulf state carriers, like | :10:30. | :10:38. | |
Emirates, Qatar and Etihad. Lufthansa has had a raft, if you | :10:39. | :10:43. | |
will, of strike action for the past 18 months. It keeps rumbling on. | :10:44. | :10:48. | |
Annual profits will be below the 1.8 billion euros of last year. Weak | :10:49. | :10:52. | |
trends, the terror attacks across Europe are not helping many of those | :10:53. | :10:57. | |
airlines. Good stuff. Let's show you the | :10:58. | :10:58. | |
numbers. Japan's Nikkei down for the first | :10:59. | :10:59. | |
time in three days thanks largely to falling oil prices and a firmer | :11:00. | :11:02. | |
yen that dented investor confidence. Banking shares saw a bit of profit | :11:03. | :11:06. | |
taking after two days This is how Europe | :11:07. | :11:08. | |
looks right now... Ahead of construction data - | :11:09. | :11:16. | |
likely to follow the lead of that weak manufacturing data | :11:17. | :11:19. | |
yesterday across Europe. More on that in a moment, | :11:20. | :11:27. | |
but first Samira has the details We will also talk about the Japanese | :11:28. | :11:37. | |
stimulus later. Samir request an 2015 was a record | :11:38. | :11:44. | |
year for car sales, so analysts will be watching closely when analysts | :11:45. | :11:49. | |
report on vehicle sales for the month of July. Annual sales are on a | :11:50. | :11:54. | |
six-year run of games. The longest ever. Will the numbers show | :11:55. | :12:00. | |
continued strength, or will we start to see a plateau? The commerce | :12:01. | :12:03. | |
Department will release personal spending month -- numbers for the | :12:04. | :12:08. | |
month of June. If there is an increase, as economists expect, that | :12:09. | :12:12. | |
will provide a bigger push for the economy as incomes continue to grow. | :12:13. | :12:17. | |
Finally, some big companies are reporting earnings on Tuesday. | :12:18. | :12:22. | |
Procter and Gamble and Pfizer, both part of the Dow Jones industrial | :12:23. | :12:29. | |
average. They are also reporting -- the American International group, | :12:30. | :12:30. | |
AIG, is also reporting. Joining us is Jane Foley, senior | :12:31. | :12:32. | |
currency strategist at Rabobank. She is a familiar face. Welcome to | :12:33. | :12:41. | |
the programme, as always. Let's start with Japan. Another kitchen | :12:42. | :12:46. | |
sink, basically? The Prime Minister has found another kitchen sink to | :12:47. | :12:53. | |
the tune of $270 billion, I am not even a Japanese expert but it | :12:54. | :12:58. | |
frustrates me to no end. 25 years, this economy has been in the | :12:59. | :13:03. | |
doldrums, 25 years. Why are they so reluctant to do what everybody says | :13:04. | :13:08. | |
they need to, structural economic reform? This is a sense of deja vu. | :13:09. | :13:13. | |
This is a rant about the 26th fiscal stimulus and the early 1990s. Every | :13:14. | :13:19. | |
year we see this. Every year the economists say we will get some | :13:20. | :13:23. | |
spending, that will raise GDP by some degree, can it be sustained | :13:24. | :13:26. | |
without the structural reform. Structural reform is about including | :13:27. | :13:31. | |
more women in the workforce in Japan, that is really important. | :13:32. | :13:36. | |
They have the worst demographics in the developed world, are | :13:37. | :13:41. | |
significantly ageing population, a cultural resistance to import | :13:42. | :13:45. | |
workers. The population is shrinking, the working population is | :13:46. | :13:47. | |
supporting more and more pensioners, so they need those women. There is a | :13:48. | :13:53. | |
cultural resistance to doing that. Shinzo Abe, the Prime Minister, has | :13:54. | :13:57. | |
said he is making steps towards that, but it appears slow. They need | :13:58. | :14:02. | |
to raise productivity. That is output per head. That is something | :14:03. | :14:07. | |
which they don't seem to be doing, certainly not at the pace that Abe | :14:08. | :14:13. | |
be promised when he came into power. As a currency expert, is one of the | :14:14. | :14:18. | |
problems faced by Japan, maybe it is out of hand, its currency is seen as | :14:19. | :14:23. | |
a safe haven, the yen. So when it gets a bit Hegga be around the | :14:24. | :14:26. | |
world, investors take money out of stocks, they will buy began, so they | :14:27. | :14:31. | |
think it is safe, that pushes the value of the yen up, hitting | :14:32. | :14:36. | |
Japanese companies who want to sell things abroad? There is a strong | :14:37. | :14:39. | |
correlation between the McKay and the value of the yen. One of the | :14:40. | :14:45. | |
important things to years that the Japanese yen is currently not overly | :14:46. | :14:49. | |
expensive. It is undervalued against many measures. One problem for them | :14:50. | :14:52. | |
is that whilst we are focusing on the value of the yen versus the US | :14:53. | :14:56. | |
dollar, their biggest trading partner is China. Recently we had | :14:57. | :15:02. | |
seen a weakening in the Chinese currency, which is not very good | :15:03. | :15:06. | |
Japanese exporters. You will take us through the papers later, some great | :15:07. | :15:10. | |
paper stories. Speak to you soon. A line of copy | :15:11. | :15:15. | |
from Volkswagen, related to events in the United States this time. You | :15:16. | :15:19. | |
know that the omission scandal is rumbling on. They have paid money to | :15:20. | :15:23. | |
buy back a number of cars in the United States and rectify the | :15:24. | :15:27. | |
problem. This is a class action lawsuit are taken out against | :15:28. | :15:30. | |
Volkswagen, they are filing for that to be dismissed. Those bringing the | :15:31. | :15:36. | |
case accuse the chief executive of Volkswagen and the current brand | :15:37. | :15:41. | |
chief, they were alleged to be directly involved in the preparation | :15:42. | :15:45. | |
of allegedly misleading statements. DW says that has no merit and they | :15:46. | :15:50. | |
are calling on that to be dismissed. Nonetheless, Volkswagen is accused | :15:51. | :15:54. | |
of deception for failing to inform investors about cheating those | :15:55. | :15:56. | |
emissions tests. Traditional hotels, motels | :15:57. | :16:03. | |
and hostels are hitting back - trying to lure the young | :16:04. | :16:06. | |
lucrative travellers away We'll be talking to one company | :16:07. | :16:09. | |
about how they're doing it. You're with Business Live | :16:10. | :16:16. | |
from BBC News. In the UK, home ownership | :16:17. | :16:22. | |
has fallen to its lowest level since the 1980's, | :16:23. | :16:28. | |
according to new figures. Major English cities - | :16:29. | :16:29. | |
particularly Manchester - have seen the sharpest falls | :16:30. | :16:32. | |
since reaching a peak Our Business Correspondent, | :16:33. | :16:37. | |
Victoria Fritz, reports. After booming in the 1980s, | :16:38. | :16:41. | |
home ownership has But now new analysis shows | :16:42. | :16:43. | |
homeownership in England The Resolution Foundation says | :16:44. | :16:48. | |
the number of people who own their home has dropped | :16:49. | :16:53. | |
to 64%, down 7% from The biggest falls have been | :16:54. | :16:57. | |
in Greater Manchester and outer London, although the West Midlands | :16:58. | :17:03. | |
and West Yorkshire have also Northern Ireland has seen | :17:04. | :17:06. | |
the most dramatic switch The think-tank which carried out | :17:07. | :17:12. | |
this analysis argues that the housing crisis is no longer | :17:13. | :17:17. | |
confined to London. They also warn it's threatening | :17:18. | :17:21. | |
to reduce living standards In response, the Government says | :17:22. | :17:23. | |
policies like Right to Buy and starter homes mean that more | :17:24. | :17:29. | |
than a decade-long decline in home The Prime Minister Theresa May has | :17:30. | :17:33. | |
acknowledged there's more to do, although some experts argue | :17:34. | :17:40. | |
that the move towards renting could also be due to | :17:41. | :17:42. | |
changing lifestyles The pies and pasties have helped to | :17:43. | :18:06. | |
deliver profits. At Greggs, they have risen by 7%. They did not | :18:07. | :18:15. | |
comment on the decision to leave the European Union but said they were | :18:16. | :18:18. | |
alert to any change in consumer demand which may result from the | :18:19. | :18:21. | |
current economic uncertainty. There are demands for the PPI | :18:22. | :18:36. | |
deadline to be enforced. It has been proposed that June 2019 be the final | :18:37. | :18:41. | |
date for claims to be made. They plan to hold an awareness campaign | :18:42. | :18:47. | |
to inform the public the deadline. A quick look on the story about Byron, | :18:48. | :18:55. | |
the burger chain put up details on the live change. -- the burger | :18:56. | :18:58. | |
chain. South Korea has suspended sales on | :18:59. | :19:20. | |
the EW 's. Volkswagen has sold more than 80,000 Volkswagen. It also | :19:21. | :19:25. | |
includes Audi and Bentley. This is on the basis of false information. | :19:26. | :19:31. | |
Hotels, motels and hostels are hitting back - | :19:32. | :19:33. | |
trying to win back the lucrative younger generation away from online | :19:34. | :19:36. | |
Young travellers are an increasingly important market, | :19:37. | :19:40. | |
with the World Tourism Organisation suggesting they spend more | :19:41. | :19:43. | |
And it is a market which is growing quickly. | :19:44. | :19:51. | |
By 2020, it's thought those young people, the so-called "millennials", | :19:52. | :19:54. | |
One firm trying to recapture that market is Generator Hostels - | :19:55. | :20:01. | |
which has 14 properties across Europe - and also has plans | :20:02. | :20:04. | |
With us is Fredrik Korallus, chief executive of Generator Hostels. | :20:05. | :20:15. | |
Great to have you in the studio. Great to be here. Can we start with | :20:16. | :20:23. | |
something we have been talking about the last week or so. We had numbers | :20:24. | :20:27. | |
from airlines and we talked about European tourism. It has taken a bit | :20:28. | :20:32. | |
of a kit with terror attacks and attempted coups, Brexit. -- a hit. | :20:33. | :20:42. | |
If an airline sees a downturn in one area, it can move its planes to an | :20:43. | :20:46. | |
area that is better. You have bricks and mortar, you cannot move those. | :20:47. | :20:52. | |
That is true. Our audience, you spoke about millennial is, they are | :20:53. | :20:56. | |
travelling fast and furious. We are having the busiest summer on record. | :20:57. | :21:03. | |
That said, we are very vigilant to what may happen. Right now it is | :21:04. | :21:08. | |
optimistic. What do you do differently? We talk about the rise | :21:09. | :21:15. | |
in websites like a B and people sorting out their own accommodation. | :21:16. | :21:26. | |
70% of our room stock is hostel stock. That means we can offer | :21:27. | :21:33. | |
affordable accommodation. The product is highly designed and gives | :21:34. | :21:39. | |
a lifestyle experience. How is that different to AirBNB. That can be in | :21:40. | :21:47. | |
the centre of a city" cheap. We see it as complimentary. AirBNB offers | :21:48. | :21:54. | |
an individualistic experience. You are in the sharing economy and | :21:55. | :21:58. | |
experiencing social engagement. Sharing everything nowadays, aren't | :21:59. | :22:04. | |
they? Cars, all those sorts of things. It has been a long time | :22:05. | :22:10. | |
since I've stayed in a youth hostel but I did my fair share, backpacking | :22:11. | :22:15. | |
around the world. I am wondering how they vary compared from the late 80s | :22:16. | :22:22. | |
to now. I am assuming Wi-Fi technology in the kind of thing. I | :22:23. | :22:27. | |
would say the traditional hostel you experienced is still there. At | :22:28. | :22:33. | |
Generator we bring a lifestyle experience which is designed led to | :22:34. | :22:36. | |
this traveller. We offer premium products. We sell bed board between | :22:37. | :22:47. | |
25 and 35 euros. -- we sell bed for between. There is beverage, music, | :22:48. | :22:51. | |
nightclubs and entertainment. All this brings everyone together in the | :22:52. | :22:59. | |
best experience. You have been known to turn hotels around. What do you | :23:00. | :23:05. | |
focus on? What do people want? Not just food and location, it must be | :23:06. | :23:09. | |
power sockets by the bed and goodbye five. I would say relevance. Wi-Fi, | :23:10. | :23:20. | |
efficiency, cleanliness and security does that is fundamental. They are | :23:21. | :23:24. | |
looking for representation of what is local. That is what Generator is | :23:25. | :23:29. | |
about. There is nothing standardised. The local culture, the | :23:30. | :23:36. | |
local arts, the local fashion. One thing we do not have is a lot of | :23:37. | :23:40. | |
time. Good luck with everything. Nice to meet you. A quick reminder | :23:41. | :23:51. | |
of how you can get in touch on the programme. | :23:52. | :24:24. | |
Jane is back with us to talk us through the papers stories. | :24:25. | :24:31. | |
Restaurants, alcohol producers cashing in on self driving cars. | :24:32. | :24:38. | |
Jerry says, I am sure that self driving cars require a sober, | :24:39. | :24:43. | |
accredited driver to take over if difficulties arise. Who knows? In 20 | :24:44. | :24:49. | |
years' time, what research is saying if every drinker had one more drink | :24:50. | :24:54. | |
a month, that would expand the beverages market by $31 billion. | :24:55. | :25:00. | |
That is a huge increase. There are expansionary prospects will produce | :25:01. | :25:05. | |
in that environment. That is the big issue. Things like the smoking ban | :25:06. | :25:09. | |
really affected clubs and pubs and nightclubs. There was a time not | :25:10. | :25:15. | |
long ago when UK pubs are closing down at the rate of one a week. Much | :25:16. | :25:20. | |
of that was associated with the smoking ban. There were cultural | :25:21. | :25:26. | |
changes with people eating out or drinking in pubs. Against those | :25:27. | :25:29. | |
headwinds, this could be something to allow a new channel about to open | :25:30. | :25:36. | |
up. Would it work for you? If you knew you had a driverless car at the | :25:37. | :25:41. | |
front, would you like another drink? If I trusted the car, I might do. | :25:42. | :25:48. | |
That is the problem. Only joking. Short and sweet. Sorry about that. | :25:49. | :25:54. | |
We will be back the same time and same place tomorrow. Goodbye. | :25:55. | :25:58. |