06/11/2015 BBC Business Live


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This is business life. Will the Sinai aircraft sink is itching


tourism as more and more countries cancel, we look at the devastating


effects on the country already that battles with industry. Our top story


today. One in nine people depend on it for


work and it contributes $36 billion to the economy. Will uncertainty and


fear puts people off from visiting the crown jewel of tourism in Egypt.


So is of the road for toccata. We have all of the news from the


markets were shares are starting to fall on the back of a slide in


luxury stocks. We are joined by Robert Peston who will be taking us


through the big economic stories of the week. We are hoping he may


answer the million dollar question, when will interest rates go up? We


want to know today, what is your worst job ever. We ask because a


Christmas shop is looking for a Christmas light detangling. The


successful applicant can untangle three metres in under three minutes.


Welcome to the programme. More countries have joined the UK in


curbing travel to Sharm el-Sheikh. The government of France, Belgium


and the Netherlands have warned nationals not to travel. The German


airlines have also cancelled their flights. This is of course a


devastating news for the tourism industry in Egypt. Just last year it


contributed $36 billion to the country's economy. That is about


over 12% of the entire output. The industry is vital for Egyptians


because one in nine workers depend on it to provide a living. About 2.9


million jobs. Last year, just under 10 million people visited Egypt and


Russia is actually the biggest source. Then the UK and then


Germany. Revenues on the famous monuments such as the pyramid have


plunged almost 100%. 95% since the Revolution four years ago. Edward


Grey to have you with us in the studio. I was reading earlier the


government in Egypt said they are opening up three tombs, noon in the


fact that tourists have not seen me to come there trying to attract more


visitors but let's be frank, it will take more than that? This isn't an


issue that they do not have enough things to CeBIT is a security issue?


It is. It is. Many months, possibly years for the sector to recover.


They have had to revolutions in the last four years and now have what is


being reported as a terrorist attack leaving the country. It'll take a


lot more than what they're doing the moment. They will have two rampant


security massively. I do not see it recovering for a long time. Is it


harsh to say given what we have seen since the revolution, tourism has


fallen off a cliff and this is the final nail in the Coffin? Not the


final nail. They have had terrorist attack before. The tourism sector


did recover and it is just a mountain of events in the last few


years. It is not the final nail but it will take a long time for the


tourism sector to recover and for the economy to recover. Given that


Sharm el-Sheikh was the last shining star of tourism in Egypt, one would


imagine they now have to rebuild the trust, tries to rebuild trust that


because it is so important to the economy, they almost metres through


the kitchen sink at this. Spend what it takes to rebuild the trust. The


Egyptian government realises that the overall healthy economy relies


on terrorism sector. -- tourism. They need that trust back and will


have massive advertising campaigns and there propaganda issues in terms


of opening the teams. It will take so many months for years for the


recovery. Sometimes consumers and holiday-makers have short memories.


If Sharm el-Sheikh starts offering good deals, we hear security is in


place, people will return. It is hugely popular for Europe. People


continue returning. Perhaps in a year or two will see it back to what


it was before the revolution before this. I think Egypt voice -- will


remain popular. It is not the end of the tourism sector, when the


economic factor is an issue and if prices cut you could see people that


are not too distant future. We will wait for further developments. We


appreciate your time and the great weekend. In other news, the main


cabin crew union have called for a week-long strike starting today at


11 after last-minute talks between staff and management over early


benefit and pensions broke down. Sharm el-Sheikh has taken a $140


million hit from strikes this year alone. -- Lufthansa. We suggest if


you are flying with Lufthansa, check on the website. Two British bankers


have been convicted of conspiracy to commit wire and bank fraud, and


misreporting liable as it related to the US dollar. Both worked for the


Dutch bank who have been fined $1 million. Disney have reported


profits of $1.6 billion compared to 1.5 for the same a year ago.


Investors have been concerned because audiences have been


abandoning traditional TV that things would be worse but in fact,


profits from cable TV dignitaries in increase. That is surprisingly is


the way we view is constantly changing. But I hope you're still


watching this one. Let's have a look at this life.


I now know if you have ever had one, my wife uses a blackberry they are


having a dire time that they have launched their very first smartphone


running on the Andrew system. They have had a really tough time as more


and more people were moving to smartphones and using personal


phones at work. The market was always in fines for business people.


Everyone used to get repetitive strain from the sun thing. And


security issues with direct messages. But we are trying to make


a comeback indeed. Let's look at around the world and see what


business stories making the news. We go to Singapore. Talk about losing a


big customer, Toyota, on Wednesday Honda dump the airbag maker and


traded it something today. Toyota have joined the list of car-makers


say they will not be using faulty Takarta airbags. It did not shut the


door on Takarta but said it will use airbag inflated that use ammonium


nitrate. This is a chemical that was flagged an exploding night --


airbags. Of course on the back of several Japanese auto car makers


turning away from Takarta, its shares have fallen 40% in the last


three days and the company said today it is slashing it full-year


profits forecast by 75%. Things are going from bad to worse for Takarta


as loses bid customers. Let's have a quick look at the market and see


what is going on. Those shares falling another 13%. Taking the


declined to 45% just this week alone because of the worsening crisis.


There will be plenty more on the website. Overnight in the US, the


SNP slipped back despite Facebook shares hitting a record high after


releasing strong quarterly figures. The European market here. Things are


moving down and the biggest one is AstraZeneca. AstraZeneca is buying Z


S Farmer for about $2.7 billion. They will be giving it access to a


blockbuster drug free daily condition called hyperkalaemia. This


is really bad news because the division alone accounts for half of


all of its sales because people are not buying luxury watches leather


and jewellery. Let's listen to see what is coming up in the US later


today. Two more reports to go until the US Federal reserve makes his


decision in December of whether to tee or not to raise interest rates.


Economist with its 180,000 jobs were added in October after two straight


months gains of about 139,000 jobs stop the unemployment rate is


expected to remain steady at 5.1%. Just shy of what the faith considers


full employment. The markets are likely to react to. Third-quarter


earnings will be released by Signe and Humana. Signe Stokes work


Thursday as it expected to be when it supported. After other insurers


face challenges in this area. I don't think we have put any money in


the electric meter because it is dark. Investment director from


Rathbone 's investment management joins us. Happy to see you. Lots to


talk about their let's start with the first Friday which means US jobs


and Harrow Times who says that was so important but apparently these on


Sunday are really important. We are getting closer to the final moments


when we put interest rates up. I know we have been here before but we


had that break in the summer because of the slowdown in China and the


fall in the Chinese stock markets and so on. Now we have adjusted to


that I think we realised things have not come to an end. The train is not


often tracks. The third has been adjusting expectations at it looks


as though the symbol be the greatest. You said it was a life


possibility for. 60% probability the rate should rise in December. She


has done what she can to help the markets. The data has been quite


patchy, sometimes quite good and sometimes quite disappointing. We


are getting quite mixed corporate results, generally overall the


results are slightly better but it is a more mixed picture than it was


six months ago. On the jobs, we are expecting 180 thousand new jobs to


be created for it over and we have two wait-and-see. We'll talk more


about the US in a minute that talking closer to home, you saw the


German numbers. We got this out first thing in the morning, they are


much weaker than expected. I guess it looks out the slowdown in China


is starting to fight for the big trade partner. Germany exports huge


amounts to China and Asia and clearly it is going to be affected


by this. Not just the automotive industry but engineering and manner


fracturing. The machinery for Chinese factories are German for


example. Yes that's it. You are going to stay around with us, you


might be working harder than you thought. We will talk to you very


shortly indeed. When will we see a rate rise. That is the question


dominating the agenda both in the UK and over in the US. We'll be talking


about that later on. That said that some of the moves. Christmas ads


have gone and all of the shots. From several commercial to blockbuster


events. Its launched this morning is thought


to have cost These adverts cost millions to make


and those involved are sworn to But they've have become


as much a part of Christmas And last year,


they pulled out all the stops. Here's a compilation of some


of the ads from last Christmas - including Sainsbury's moment from


the trenches of the First World War Part of it is about pulling on the


heartstrings and part of it is about the magic of Christmas. That will


have an effect. A massive part is being different. That is where it is


hard for every single advertiser. We are looking for a deep, emotional


truth. They will try to bring that to light.


The controversial Uber taxi app is launching in Edinburgh after


the company reported "huge demand" for the service in the city.


Uber said more than 65,000 people in the capital had already opened the


The service allows passengers to hail a taxi using a mobile phone.


Uber first moved into Scotland last month with


There are plans to expand the service to other towns and cities.


This story has just appeared this morning. It is about talk talk. You


will remember, this is a new development. It has affected 157,000


customers. More details coming out from the cyber attack. More than


15,000 bank account numbers have been stolen. If you think you have


been affected by this more details on the website. Last week the police


released a 16-year-old boy on bail, the fourth person to be arrested in


connection with the hack. If you are worried about this, go to the


website where there is more information.


Egypt's tourism industry is reeling after more countries joined the UK


in curbing travel to the resort of Sharm el-Sheikh the crown jewel


governments of France, Belgium and the Netherlands warned


their nationals not to travel, and German airlines cancelled flights.


Tourism contributes some $36 billion to the country's economy, and one in


My landmark is voting in a historic election on Sunday. The economy is


slowly opening up and the banking sector is a sector that is


benefiting. Foreign banks are still complaining. Our Asia correspondent


caught up with someone from one of the country's biggest domestic


institutions. Diversification of the economy as being consistent. What


foreign investment think about most is oil and gas and war materials. I


think you see real estate, a sector that has grown quickly. That is a


reflection of the wealth. People are prepared to pay for apartment at a


healthy price. In that regard, the economy is quite healthy. There has


been a lot of criticism from foreign investors who say this country is


far too protected. It is very difficult for foreign banks to come


here. Grumbling of foreign investors is a fairly global phenomenon. I


would argue you see that in China and other emerging markets. My own


mark is no different. The Government has been quite liberal, given the


time frames we are talking about. -- Myanmar. There is a web of


regulation which is rather opaque and difficult to understand. The


Government is in the process of reforming all of that. Nevertheless,


which is really what makes a local partner import and... As far as the


banking sector goes, it is safe to say the issuing of nine foreign


banking licences is quite sufficient. For the population, nine


foreign banks serving populating 29 foreign banks is more than


efficient. I have to apologise. We have to apologise. We could not get


Robert Peston. It is a shame. It would have been his very last


business live because he is off to pastures new. I think he has packed


up early exploration that he has already gone. Robert, if you are


watching, good luck. Earlier on we were talking about


what is the worst job you have had. Some was teaching Iranians English


and he said he was laughed at the whole time because of his accent.


What was your funniest one? I worked at an air cargo office for a day. I


did a day and I thought, oh my gosh, this was in between schools


and all of that. The best job, the Sackville punt driver across the


Hawkesbury River. It was a great job. Can you believe they let him


drive that? The ferry master was a drunkard, Paddy. I was 15 and I


drove the punt. It was great. What was your worst job? Bagging up


compost in a garden centre. Let's talk about some of the stories in


the papers. Ageing Japan bets on silver yen at Vegas style casino


daycare. What is going on? This is all about keeping the elderly


entertained in Japan. Daycare centres where they can gamble.


Apparently it is not about money. They are using chips and not cash.


It is all about the incentive to win. They are gambling away all day


long. It is interesting reading this article. 10 million Japanese people


are over 80. That is a huge proportion of the population. This


is the reason why the Japanese government has had to work so hard


to get the economy going because the population is ageing. There is not a


great deal of immigration and that proportion of the population is


vast. It is a huge burden in terms of the people who are working in


terms of attacks. Those parents have a lot of money saved. They are the


number one saving nation in the world, Japan. There is a lot of


money to spend on gambling. I saw this one this morning. Are you


serious? Somewhere in Wales. I love this one. Sorry... The successful


applicant will be able to untangle three metres of Christmas lights in


three minutes. You have to have a genuine passion for Christmas in


order to apply for this job. But is in the job description. An amazing


story. They do not say how much you get paid. It is a national first. I


am an OCD person who tries to wrap up life in an orderly fashion. When


I get the map, it has not worked. You think, I put it away. 12 months


later, why is it tangled? What do you do? You get so frustrated, you'd


think, I cannot be bothered with this and go out to buy another set.


Our hamster chewed through the wire last year so I did not have to


bother. He was OK. We have one more... This is in the Wall Street


Journal with the Goldman Sachs story. They are struggling to keep


their youngsters in the shop because they are going off to silicon valley


and private equity houses. They have come up with sweetness to try to get


people to stay in the firm. The ala some of these young bankers have to


work are unbelievable. -- the hours. They will leave at 3am all 4am on a


sustained basis. The banks have had to rethink. Young people think about


lifestyle and quality of life. There is also competition in terms of


other careers. I think it is a good thing actually. 2000 analysts each


year. First and second year analysts earn a salary of $85,000. Excluding


bonus. The rewards are enormous. Personal costs are extremely high.


There is a reassessment going on, which is a healthy thing. In the UK,


it is a very similar picture, isn't it? Sign this generation of 18-35


-year-olds are beginning to think differently. -- This generation.


They are beginning to think how they incentivised. Have a lovely weekend.


Plenty more on the website. Check it out.


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