02/11/2016 BBC Business Live

This is Business Live from BBC News, with Ben Thompson and Sally Bundock.

The world's biggest online retailer gears up for "Singles Day".

Live from London, on Wednesday 2nd November.

Alibaba is expected to post a big rise in income.

But what about its plans for global expansion?

Markets in South Korea take a beating as the country's

corruption scandal forces out the finance minister

Our Asia business hub will bring us the latest.

They're super fit and super talented.

So how do you handle a global sporting superstar when they decide

We'll find out from one of the big bosses at a major sports agency.

And, as internet use on mobile phones overtakes desktop

computers for the first time, we want to know, have

you ditched the desktop and manage on mobile?

We start with news of a true titan of the business world, Alibaba.

The Chinese firm is the biggest e-commerce platform in the world,

so when it reports its latest results in a few hours,

it's going to attract a lot of attention.

This gives you a sense of its enormity.

Last year, transactions on Alibaba sites totalled some $462 billion.

That's more than eBay and Amazon combined.

The company became one of the globe's most-valuable tech

firms after raising $25 billion from its US stock-market launch.

Investors will be looking for news of its plans for global expansion.

Its mobile payment system Alipay is key to that,

with plans for it to be introduced in Europe, the US and Asia.

Alipay is also important for the company's moves to cash

in on a shift in how consumers shop, now increasingly doing

Ben Preston is a director at Orbis Investment Advisory and is with us.

The profits news is expected to be fairly robust, but many are asking

questions about the outlook. China is already a world leader in terms

of the proportion of goods that are bought and sold online and on

mobile, and in that market Alibaba are the biggest player, so they are

huge. Over 400 million customers, larger than the UK and US

populations combined. It has grown strongly, it becomes harder to

maintain the growth rate, and there is the element of competition. The

more money you make, the more you attract competitors. There is

home-grown competition, and from Amazon prime, who have just arrived

on the scene. Can Alibaba, because of first mover advantage, keep hold

of its market share? Amazon are still very small in China. Alibaba

has a huge advantage will stop we are not interested in what is

happening today, but in several years in the future. The scale that

you have today is imported, but what is critical is what you offer

customers. Some local competitors have come in with a slightly

different business model Emma and are growing faster than Alibaba.

Their payment system is on the agenda, enabling us to pay for

things on our mobile devices, that is important to any mobile retailer,

but talk about Alibaba's intentions outside mainland China, when will we

see us considering Alibaba in Europe as opposed to Amazon? They have this

ambition that 50% of their business will be outside China in the future.

That will be hard to do, because we already have our established

businesses. We often use Amazon and eBay, and it is hard to disrupt

customers with fake IDs to a particular marketplace. In the US it

is one of the most trusted brands when it comes to online shopping,

Amazon, but will it come to a point where it is about price wars and

going for the cheapest version's --? I don't think so, you need

accommodation of price, quality and service.

When the results come out, we will let you know how they are doing.

Tesla has written to shareholders ahead of a vote on its $2.6 billion

acquisition of solar-panel company SolarCity.

It needs to win their support for the deal despite reports of

Tesla says the takeover would provide a boost to profitability.

Investors are due to vote on the deal later this month.

Tesla's founder Elon Musk say he's confident the takeover

A leading think tank is warning inflation in the UK will quadruple

to about 4% in the second half of next year.

The National Institute for Economic and Social Research says the rise

in prices will "accelerate rapidly" during 2017 as the fall

in the value of sterling is passed on to consumers.

In September, the inflation rate rose to its highest level

We have been following the woes of Deutsche Bank. Shares in the Italian

bank falling 6% in early trade today, prompting an automatic

trading suspension. This after the withdrawal of the alternative rescue

plan for Italy's third largest lender.

A lot of concern about exposure to the Italian banking sector. That

bank is one of the Weakest Link in Italy. Real concern about the

outlook for that bank and the implications it may have for other

banks in Europe exposed to Italian banking.

It is all about bad debts and what it means for the wider economy.

Fast-moving developments in South Korea's corruption scandal

are having a real impact on the markets there.

Sharanjit is across this for us in Singapore.

Expert on what has happened and why this affects the market. The South

Korean currency and shares have fallen to their weakest level since

early July. That is as political boys inside and outside the country

made investors uneasy. The benchmark stock index closed down about 1.4%.

The currency touched a low of 1152 during the session. A lot of concern

around the scandal, South Korean prosecutors have accused a close

friend of the President of fraud. The woman is accused of siphoning

woman -- money from a fund that received millions of dollars in

donations from national firms. It is a political scandal that are

threatening to undermine the President. A new Prime Minister as

well as a Finance Minister have been named. The fourth time minister to

serve under the President, while it will be the fifth Finance Minister

in four years. The moves are not likely to result in any policy

changes, but there is a lot of uncertainty of how much longer the

president will remain in power. That is impacting the market sentiment,

and her approval ratings have sunk to single digits in the wake of the

allegations. We also see the tightening American presidential

race, which is also weighing on market sentiment and across Asia.

Joining us is Justin Urquhart-Stewart, co-founder

and director of Seven Investment Management.

We saw all markets in Asia sliding today following the fear factor on

Wall Street, and it is carrying on into Europe. Markets, or investors,

are running for safety. The nasty phrase, comp dump! But it puts a

frisson of nerves through. A bit like dealing with the referendum,

everybody knew which way you were going, but the risk is not that

side, it is the other side, and like with a referendum, the risk is that

if you voted to go, therefore the impact on sterling, exactly the same

with Donald Trump, so what will you do? The interesting thing about

Donald Trump, when we voted to leave the EU, sterling fell like a stone,

but that will not necessarily happen with the US dollar is Donald Trump

or to get the job. The US dollar is seen as a place of safety. One

currency would be affected, the Mexican peso, because one of the

issues was if Hillary Clinton gets in, the Mexican peso would recover

quickly. Down 2% today. Further pressure the, further dollar

strength, perversely. Federal Reserve data not expected to hit the

headlines, they want to keep a low profile. Everybody is getting into

trouble, making decisions at the moment! It will be next month. There

is a very good chance there will be a rate rise, because the American

economy is doing quite well. Jobs figures are quite good, growth

figures are quite good, the types of jobs are not quite so good. It is a

change. We'll be markets get nervous? They have known about it

for some time, but they will still get nervous, because it is a change

in that direction. We move into the cycle, rate start rising. How much

did you use your mobile device? It is fascinating how it is changing.

We have this argument about which one is being used. Now I think I use

my mobile and my tablet the most. It is fascinating. When you look at the

surface pro, which bridges the two, there has been a change. A lot of

offices doing that, you take your device with you, but when you get

in, you plug it in. The much loved tablet.

It never works! It drives us round the twist.

Shulman mentioned some viewer comments? Catherine says she merely

uses her laptop. She says the mobile screen is too small to see and hurt

her hands to type. Karen says a combination is best,

mobile for faster customer response, plus big screen for planned work.

Scott says, the phone is the only way when I am not at my desk, but I

prefer to use the desktop. It is about scale, there is only so long

you can stare at a tiny screen. Maybe that is a sign of me getting

older as well. They're full of ambition

and talent, but not always We'll talk to a leading sports agent

about how you handle a global You're with Business

Live from BBC News. We've had a trading update

from the British high street. Retailer Next has given detail

of its sales for October. Sales down nearly 6% in the third

quarter. What more do they have to say? Next has been struggling in the

third quarter, and it did expect it would be, because this time last

year the company was doing very well, but this year things have been

different, there has been the fall in the value of sterling, but also

unseasonably warm weather. No surprise there shareholders, the

share price has had a bit of a rough ride. A big fall after the

referendum, and back up, and then fell again. The problem is that the

high street stores are not doing well, sales are down nearly 6%.

Online, catalogues, a bit better, but the picture for the third

quarter has been fairly rough. For the year as a whole it is ecstatic

profits to be stable at about ?805 million, because it has been cutting

its costs. And we've had details on the latest

shop prices this morning, The price rise has not happened yet,

according to new figures. In the year to October shop prices fell by

1.7%, compared to last October. We remember Bob White gate, Unilever

raising its prices and Tesco protesting. The fall in the value of

sterling has not that through jet. Many retailers have hedged against

it, they have taken out insurance against a falling sterling, but

those contracts will expire soon and the British Retail Consortium says

it is inevitable that higher prices will follow next year.

Lots of earnings on our page. I have highlighted this one. Tim Martin has

been a guest on our programme if you times, the chairman of Wetherspoon

's, he was pro Brexit. Their sales have grown 3.5%, in the 13 weeks to

the end of October. The level of like-for-like sales growth slipping

to 2.3%. One thing we are keeping a close eye

on, the quarterly inflation report from the Bank of England, we will

look at that in detail tomorrow morning.

It's all eyes on the Chinese e-commerce giant Alibaba.

It reports its result later today, and investors will be looking

for more news on the company's plans for global expansion.

A quick look at how markets are faring.

Name the film that this line comes from.

It's Jerry Maguire, of course, the Tom Cruise movie about a sports

agent and his efforts to get the best deal for his client.

But away from the Hollywood portrayal, what's the sports-agency

Last year the global sports market revenue was $145.4 billion.

In the UK alone the business contributes over $24 billion

to the economy, and as an industry provides 450,000 jobs.

One of the major players in this market place is Wasserman,

a global sports agency that deals with everything

Their client list covers athletes from across football,

as well as rugby, basketball and baseball, to name a few.

They've negotiated deals totalling hundreds of millions of dollars

and represent brands as varied as Microsoft,

Lenah Ueltzen-Gabell knows the industry from both

She rose to fame as a world beating equestrian star -

and now is one of the big bosses at Wasserman.

And York area of expertise is Europe, the Middle East and Africa.

And there is a big event happening today? Yes, we are proud to work

closely with the Abu Dhabi sports Council to bring the ladies open to

the Middle East and to Abu Dhabi. It is the first ladies sporting event

ever in that region and we are so proud to bring that to life. When

you say bring it to life, what do you actually need to do to make that

happen? There is so much going into it, take a wedding and times it by

ten is probably the best thing to think about, between the organisers,

the talent, the sponsors and then taking something so momentous for

women in this industry, which is still an area where we need to do a

bit of work. It is just managing a lot of different things. You were an

equestrian sporting star moving into this side of the business. Talk us

through that transition. Presumably your experience as a sportswoman is

extremely helpful? You understand both sides of the story. Yes, I

guess I started in this industry has the talent and now I've switched

over to the business side. I think I had my first client at 13 when I was

competing. And now it really helps understand young kids as they enter

into this environment, and understand the sponsors, the money

and all the different pieces that kind of have to play together. Give

us an idea of how that relationship works. If you have a young fledgling

sports star who you have spotted potential in, they could go far,

very good at what they do, how do you start that relationship with

sponsors Westmont do sponsors want something for their money? It's not

just about exposure, so how do you manage it? Very carefully, but it's

really about education on both sides of the fence. I think when you bring

sports stars into this environment there is a lot of money and pressure

but at the end of the day it is about the sport they love. It is

about keeping them focused. Looking towards the brands, they get into

this for the Passion of the sport and the excitement around it. So you

can't have them polluting the game as well. You have to think of the

fine balance of educating both sides on what they are buying into and

what they could potentially get out of this, so that they have

understanding and respect for each other. What happens on the flip side

if things do not go according to plan? A number of sports stars have

fallen from grace. How do you manage the downward spiral rather than the

rise to fame? I think it is crisis management on both sides. Looking to

any other sponsorships and partnerships, they don't always go

as planned, so you always need a back-up plan. I think it comes down

to education. It's about having people understand the consequences

for the decisions they make and also showing them and having that sort of

built in attitude. How do you measure and protect your talent?

Especially in sports some of them are extremely young. And it's just

an incredible swift move to global fame, isn't it? If you are extremely

talented and rise to fame quickly it must be hard to manage that. It is.

But if you go back to why they are famous, right? It's about the

performance on the pitch and you never want to impact that, right?

You have to stay very focused on that. If you are not able to perform

on the pitch it goes away. If you can keep them focused, keep a good

surrounding an education, a smart client, whether they are a talent, a

brand or a property, they understand the consequences of what we are

dealing with. We talked primarily here about the sports stars

themselves, and you talked about putting on this event in Abu Dhabi,

do you have to approach that very different he? I suppose when you are

dealing with individuals it is eager management to a certain extent,

shall we say? But when it comes to event it is about profile and I

guess in the case of Abu Dhabi putting it on the map in terms of

sport. It is all about brands, whether you are a talent, a

blue-chip brand, that is your brand. And you are both brands sitting here

in front of us. It's about managing those brands and asking them what

they want to be, what are we trying to portray to the world, really

working closely with the Abu Dhabi sports Council, really working

closely with the that we have worked with here, the brands we have worked

with. What are you trying to achieve? I call it the mirror test,

and that helps the talent well. What are these guys trying to achieve?

Who do they want to be when they grow up? I think it is quite another

dealing with a brand that has its own PR team, or working with your

own talent or a venue or a country. Interesting. Thanks for coming in.

Very interesting. I still think we go through that thing of what I want

to be when I grow up. A Blue Peter presenter. How did that happen?

In a moment we'll take a look through the Business Pages but first

here's a quick reminder of how to get in touch with us.

We have loads of comments coming in about mobile devices against

desktop. You can stay ahead with all the days

breaking business news. We'll keep you up-to-date with all the latest

details with insight and analysis from the BBC team of editors right

around the world. And we want to hear from you, too. Get involved on

the BBC business life web page. And you can find us on twitter and

Facebook. Business Live on TV and whenever online, you need to know.

Joining us is Justin Urquhart-Stewart, Co-Founder

Director of Seven Investment Management.

Nice to see you again. We are going to talk about this story in the

Telegraph, mobile web usage overtaking desktop for the first

time. All of us walking around staring at our phones, not sat at

desks using traditional computers. We spoke earlier about whether you

were a convert. People now shopping, surfing, doing everything on the

move rather than being tied to a desk. You see people walking down

Regent Street, their phone is attached to their head. Sometimes

you see them moving it around so they can then see the screen, then

putting it back to their head again. It has just fundamentally changed.

It's not so much the phone, it's seeing how much growth there is in

the tablet side of things. The issue with the screen has aways been the

construction, you cannot just look at the little screen the entire

time, you'll get boss eyed. That screen gets a little larger, then

you have all those things you have on your desktop capable of going on

to the pad, life then suddenly changes. I remember our team in

Singapore did a piece, I can't member which city it was, but a city

in China, where they have mobile aims. So you know you have a cycle

lane, the pavement, the road. The amount of times I have almost bumped

into somebody not looking where they are going. The most dangerous person

in London is a young lady armed with a hot cup of coffee and a phone. Why

does it have to be a young lady? Because men can only do one thing at

once. Julie says she only uses her so or tablet for browsing. Luke is

not a convert, he says he has and always will use the desktop for

browsing, it is much easier than having to use your phone. Chase says

I ditched my desktop PC for my mobile, I can't carry my desktop in

my pocket. Indeed. Let's look at some other stories with Justin. The

highest-paid jobs of 2016 have been revealed. Ayew on the list, just in?

Luckily they don't have the names. Who's doing what and being paid

what? Not unsurprisingly, Chief Executive and senior officials,

they've put that at ?85,000, which compared with Sir Martin Sorrell, I

would think is a day 's pay. Aircraft pilots and flight engineers

and air traffic controllers are below that. These must be the legacy

carriers, I'm guessing? I would suppose so. I'm guessing if you are

on Ryanair or any of the other discounters, you will not be

well-paid. Number four is transport associate professionals, I have no

idea what they are. No idea. Legal professionals comes sixth, I'm not

surprised. I'm surprised it's so low actually. And brokers that. Broking

what? That covers all to multitude of sins. Financial directors at

number ten, that cannot be right, surely. Justin, what did you want to

be when you grew up? If you had an agent at the age of 13, where would

they have taken you? To Egypt, I wanted to be an archaeologist. You

are getting there. I've got to go back to my childhood, I've been told

to go and find a relic before they become what. You are going on dig

sand allsorts. Yes, economic archaeology. Thank you for coming

in, always good to see you. Have a good day, goodbye.

For most of us a fine looking weather day with plenty of sunshine