13/11/2015

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:00:08. > :00:19.This is BBC business live with us. Still in crisis, street clashes in

:00:20. > :00:23.Athens. Looks like back towards recession. That is our top story on

:00:24. > :00:41.Friday 13th November. A growing mood of despondency in

:00:42. > :00:47.Greece. The country's waiters GDP figures are out in a few hours' time

:00:48. > :00:51.and they are expected to show that its economy contracted 1% compared

:00:52. > :00:57.to the last few months, waiting at the growth of the past few months.

:00:58. > :01:03.The robots, they are coming. Could the be taking your jobs, 50 million

:01:04. > :01:08.jobs. That is the warning of the Bank of England's chief economist as

:01:09. > :01:17.technology advances. The global markets are opening this Friday.

:01:18. > :01:21.Stocks are dried overnight and investors continuing to mull over

:01:22. > :01:28.the rate hike in America next week. We are joined by our tech experts

:01:29. > :01:33.who will give his take on the new tech stories this week. We want to

:01:34. > :01:39.know, what do you reckon about robots taking over? Could a robot do

:01:40. > :01:50.your job? Let us know. Just use this hash tag.

:01:51. > :01:57.A warm welcome to the programme. We start with Greece. Growing fears

:01:58. > :02:03.that the country is slipping back into the session. Some are blaming

:02:04. > :02:08.the austerity imposed by the EU and the IMF. Others, a failure by Athens

:02:09. > :02:13.to stick to its reforms. Either way the suffering of the Greek people

:02:14. > :02:18.are set to continue. Let's take a look at the numbers involved. Greece

:02:19. > :02:25.return to economic growth last year after year slump. But it looks like

:02:26. > :02:29.that recovery is over. GDP figures for the three months to September,

:02:30. > :02:34.they are out in just a few hours from now. They are expected to show

:02:35. > :02:38.that the economy contracted around 1% compared to the last three

:02:39. > :02:43.months. Wiping out the growth that we saw in the previous quarter. It

:02:44. > :02:48.is a trend that could be set to continue. Both the European

:02:49. > :02:53.Commission and the OECD warned that Greek GDP will end the year down,

:02:54. > :02:58.1.4%. With a similar fall coming again next year. This is the real

:02:59. > :03:04.worry fight, a quarter of the Greek workforce, they are still

:03:05. > :03:09.unemployed, without jobs, about twice the EU average and almost

:03:10. > :03:17.twice of those under 25 are under -- without a job still. Greece was

:03:18. > :03:22.paralysed by a new strike. 25,000 protesters taking to the streets in

:03:23. > :03:28.central Athens. Trade union leaders and many Greeks say they have turned

:03:29. > :03:37.on the Prime Minister and his party 's -- accusing them of caving into

:03:38. > :03:43.lenders. Andrew Walker joins us this morning. Before we start, we have

:03:44. > :03:46.got some comments from some of the process -- the protesters from

:03:47. > :03:51.yesterday in Athens. This is what they had to say about austerity. I

:03:52. > :03:54.believe strikes can backfire on workers but there are some moments

:03:55. > :03:59.when people need to react. This is the time when people need to react.

:04:00. > :04:06.Enough already with the taxes, enough with the double top. They

:04:07. > :04:10.need to letters breeze. It is an expression of worry about the

:04:11. > :04:13.uncertainty and insecurity that prevails in our country and for the

:04:14. > :04:21.living standards of our society and people. -- -- let us breeze. The

:04:22. > :04:25.Greek people must rise up and take to the streets because the situation

:04:26. > :04:28.is only going to get worse. These measures that the government wants

:04:29. > :04:43.to pass our measures that will be areas. -- that will bury us. Andrew,

:04:44. > :04:50.as outsiders watching, hang on, they had a referendum in Greece. They

:04:51. > :04:55.gave the thumbs up for the government to stay in the EU, to

:04:56. > :05:00.accept the bail out. This money does not come from free and now they are

:05:01. > :05:05.protesting again! There is no question that the short-term impact

:05:06. > :05:09.on austerity does aggravate an economic downturn. There is a big

:05:10. > :05:15.debate to be had whether you are laying the foundations are not for

:05:16. > :05:21.stronger growth in the future. But, you have to bear in mind, even

:05:22. > :05:27.though there was support for this is a party in the election, they did

:05:28. > :05:43.have a mandate to negotiate with the EU, there were a lot of people

:05:44. > :05:48.voting against it. -- Syriza party. There are others in the EU zone who

:05:49. > :05:53.are vocally saying, Athens, we have had enough of this. One of the

:05:54. > :05:57.sticking points at the moment is that it seems that the government

:05:58. > :06:01.wants to allow people, if they do not pay their mortgages, they will

:06:02. > :06:06.not repossess the homes. The government wants to write off

:06:07. > :06:11.people's mortgages. The European Union and the IMF wants to see

:06:12. > :06:18.tougher rules that will enable banks to foreclose, to repossess homes,

:06:19. > :06:22.when borrowers are in default for a long enough period. It is

:06:23. > :06:28.politically very sensitive, there is a question about it. It is a general

:06:29. > :06:33.and a very sad fact of life in most economies, that if you do get into

:06:34. > :06:38.serious enough arrears on a home loan, you end up losing it. But this

:06:39. > :06:43.is one of the main big outstanding issues. I think the view in the rest

:06:44. > :06:48.of the Euro group is that Greece has made a lot of progress, they have

:06:49. > :06:54.had several payments of money. And what we are looking at now is the

:06:55. > :06:59.last stages before the Euro group will authorise another payment to

:07:00. > :07:04.Greece and in particular the release of up to 10 million euros to

:07:05. > :07:12.recapitalise the banks. Let's talk about that. Currently there is this

:07:13. > :07:16.2 billion euros package. The recapitalisation of the banks, the

:07:17. > :07:22.restructuring of the banking system, that is something that the troika

:07:23. > :07:24.are seeing is vital. We are still not seen the sort of overhaul of the

:07:25. > :07:39.financial systems in reforms in the way that the banks

:07:40. > :07:43.are run, two insulated them for -- from any

:07:44. > :07:48.the big question is simply getting the capital into the banks so that

:07:49. > :07:52.they have sufficiently strong foundations to provide the credit

:07:53. > :07:55.that the private sector needs to expand. Therein made this

:07:56. > :08:02.deterioration we have seen in the economy that will be confirmed in

:08:03. > :08:03.the figures we are going to get hour and a half. That is very much

:08:04. > :08:09.underlying. deterioration. We saw the slight

:08:10. > :08:14.return to growth in the last quarter. The previous quarter, up

:08:15. > :08:20.one view of what happened there was that may be a fair amount of

:08:21. > :08:24.spending driven people getting out -- money out of the bag before

:08:25. > :08:31.foreclosure. That foreclosure did happen and it has done further

:08:32. > :08:39.damage to the economy. -- out of the bank. We have discussed the lenders

:08:40. > :08:43.having to default some of the spending. Thank you

:08:44. > :08:48.Andrew. Let's touch on some of the other stories making headlines. We

:08:49. > :08:50.will start with the German economic growth. It slowed slightly in the

:08:51. > :09:01.last few months. According to preliminary numbers. The German

:09:02. > :09:10.economy exploded by 0.3% in that July-September period. Compared to

:09:11. > :09:14.growth. They had growth of 0.4% in the previous quarter, that is why we

:09:15. > :09:21.are seeing this load a little bit. Let's stay in Germany, Volkswagen,

:09:22. > :09:25.it set as 30th November deadline for staff with knowledge about those

:09:26. > :09:29.diesel emission test cheating to come forward. Workers who get in

:09:30. > :09:35.touch with internal investigations by then will be exempt from

:09:36. > :09:40.dismissal according to a letter from the branch chief. US regulators

:09:41. > :09:45.found software that turned on emotions controls when the car was

:09:46. > :09:54.being tested. -- emissions controls. Talking about Volkswagen, let's talk

:09:55. > :10:04.about the Tabby. This just keeps going. What have they set aside, at

:10:05. > :10:08.?7.5 billion. September the AT that scandal broke. That is not going to

:10:09. > :10:15.be enough money. This is a story about Brazil, they have fined

:10:16. > :10:20.Volkswagen 13 million dollars in Brazil. The Prime Minister of India

:10:21. > :10:28.is in the country at the moment here. But Belgium does more trade.

:10:29. > :10:36.Diamonds. It is day two of that three-day visit. Let's go to

:10:37. > :10:43.Singapore. She is going to talk about the markets. We point one

:10:44. > :10:49.finger at the word commodities. Asian shares took a big hit today

:10:50. > :10:54.from swamping commodity prices. The prices of key commodities, oil,

:10:55. > :10:57.copper and gold all failed to multi-year lows overnight because

:10:58. > :11:02.there are list of growing concerns. First there, there is oversupply

:11:03. > :11:06.issues in the sector because of slowing demand from China. Then

:11:07. > :11:11.there is the likelihood of the Fed raising interest rates in the US in

:11:12. > :11:15.December which is bad. It strengthens the US dollar. These

:11:16. > :11:20.factors combined have packed a strong punch against the resources

:11:21. > :11:27.sector here. Shares are down, most in Hong Kong. Glencoe shares tumbled

:11:28. > :11:33.over 7%. There is the big Sydney listed miners that fell almost 2%.

:11:34. > :11:39.Not a good day for the commodities sector today. No, indeed. Let's stay

:11:40. > :11:44.in Asia, Japanese stocks slipped on Friday. They are snapping a

:11:45. > :11:48.seven-day winning streak as investors shunned risk and cashed in

:11:49. > :11:51.on recent gains after a sharp drop on Wall Street. It was a similar

:11:52. > :11:57.picture across the region were shares slumped. Those commodity

:11:58. > :12:02.prices plunging to multi-year lows and worries that slowing global

:12:03. > :12:06.growth may worsen as supply glut. US Federal Reserve officials kept

:12:07. > :12:11.beating the drum for a rate hike next month. Here in Europe, shares

:12:12. > :12:17.following suit, opening the work. The FTSE and London down half a

:12:18. > :12:21.percent. Focused on what central bankers have them sing on both sides

:12:22. > :12:26.of the Atlantic, with Janet Yellen on Thursday not giving too much

:12:27. > :12:30.away. We can find out more now about what is making headlines in the

:12:31. > :12:34.business world across the pond. After a weak performance by Macy's

:12:35. > :12:38.earlier in the week, we will find out how department store JCPenney

:12:39. > :12:45.cork performed on the third quarter. It is expected to beat analyst

:12:46. > :12:51.estimates, helped by higher sales in half of its stores. We will get a

:12:52. > :12:54.look at US retail sales in October. Analysts believe Americans kept

:12:55. > :12:59.spending on cars and other goods, making it a stronger month in

:13:00. > :13:03.September. Data is expected to show that consumer sentiment is up in

:13:04. > :13:09.November. Finally, the Labor Department will release figures for

:13:10. > :13:14.October. It usually gets passed onto consumers. That will give us a peek

:13:15. > :13:20.on inflation and whether or not it is headed in the direction of the

:13:21. > :13:28.Fed2% target. Richard Fletcher joins us. Let's continue on because it is

:13:29. > :13:34.the commodities theme. A problem from London's main market, the FTSE.

:13:35. > :13:41.The FTSE is down around 6% since the beginning of the year. That is

:13:42. > :13:45.because we are more exposed. We have seen commodity carnage as one market

:13:46. > :13:50.commentator called it yesterday. London is more exposed and therefore

:13:51. > :13:57.a lot of these companies are plays on the price of raw materials they

:13:58. > :14:01.produce. Oil is touching 6.5 year lows, not surprisingly these

:14:02. > :14:06.companies are seeing the sheer browsers just continually fall. It

:14:07. > :14:11.has affected markets around the world. I want to ask you about some

:14:12. > :14:18.of the European data. GDP numbers for France, Germany, Italy, Greece,

:14:19. > :14:24.coming in at ten o'clock. What are you expecting? We get nine countries

:14:25. > :14:30.updated and then we get the overall numbers which is meant to be 0.4%.

:14:31. > :14:37.France has returned to growth, good news. Germany was disappointing,

:14:38. > :14:46.there Gross has stalled. It was expected. -- their growth. The

:14:47. > :14:50.eurozone number as a whole, comes ahead of more information from the

:14:51. > :14:56.European Central Bank. Richard, many thanks. Are you going to come back

:14:57. > :15:02.into the papers? We will talk to you shortly. We are joined by our tech

:15:03. > :15:06.guru who will take us through all the tech stories like the Facebook

:15:07. > :15:12.one, the drones. The laser drones that beam out the Internet, can you

:15:13. > :15:18.imagine? You are here with BBC business live here on BBC News.

:15:19. > :15:20.Now, it's been announced that the government has sold ?13 billion

:15:21. > :15:22.of former Northern Rock mortgages that taxpayers acquired

:15:23. > :15:33.Tanya Beckett has more on this and joins us now.

:15:34. > :15:39.What more can you tell us about Northern Rock? Northern Rock have

:15:40. > :15:46.been running up a nice little asset book so had been loaning mortgages.

:15:47. > :15:52.It had become the fifth largest lender in that area. It was for the

:15:53. > :15:55.crucial difference was how it was financed through the wholesale

:15:56. > :16:02.market. It didn't have people depositing money. So it was less

:16:03. > :16:05.stable. There were criticisms of the financial regulation authorities at

:16:06. > :16:09.the time for not spotting it and therefore how it was exposed. We

:16:10. > :16:14.know it had to be saved by the government. Some of its assets went

:16:15. > :16:18.into virgin money and some were bought by the government, with the

:16:19. > :16:24.hope that as the economy recovered, those assets would become more

:16:25. > :16:29.recoverable. That seems to be the case. It went into a sort of bad

:16:30. > :16:38.bank and now the government says it has sold 85% of those assets and 13

:16:39. > :16:42.billion to a private equity firm. That private equity firm has sold

:16:43. > :16:49.some of it onto the TSB. So why couldn't the government sell it on

:16:50. > :16:53.to the TSB straightaway. That's where we are with that. Any hopes it

:16:54. > :17:02.was going to pay down vast amounts of public debt should be put in

:17:03. > :17:07.context. Public debt is about one trillion pounds. Also the UK

:17:08. > :17:12.Government has to sell off the remainder of The Royal Bank of

:17:13. > :17:15.Scotland, it still owns a 73% stake in that and it is open to question

:17:16. > :17:20.as to how much it will get for it. The word is it will make a loss. But

:17:21. > :17:28.on the sale of assets, it made a profit, about a quarter of a

:17:29. > :17:35.billion. Thank you, Tanya Beckett. Do you like same-day delivery?

:17:36. > :17:42.I love it. Amazon, order before six p.m., next day it is in the hand.

:17:43. > :17:46.We are fully paid-up members of the want it now generation.

:17:47. > :17:50.Amazon leading the way, but other companies already doing it, we want

:17:51. > :17:53.it now. Don't want to wait, don't want to wait!

:17:54. > :18:00.An economy choked by austerity, or one that's just failed to reform?

:18:01. > :18:05.The latest growth numbers coming out of Greece are expected to show it's

:18:06. > :18:18.And now its been a busy week for tech stories. Facebook announced it

:18:19. > :18:20.was working on laser drones that will beam high-speed internet access

:18:21. > :18:27.The US charged four men in one of the biggest hacking case

:18:28. > :18:34.Snapchat got marked down by one of its most high-profile investors,

:18:35. > :18:38.raising further questions about the soaring valuations

:18:39. > :18:47.And we can't not mention it, China singles day -

:18:48. > :19:16.The last couple of years we have had managed to sell a record $14.3

:19:17. > :19:21.The last couple of years we have had this phenomenon in

:19:22. > :19:25.they have managed to increase their valuations privately and then you

:19:26. > :19:38.have these extraordinary billion-dollar valuation without

:19:39. > :19:41.ever going to the market. A lot of these companies, people are

:19:42. > :19:48.beginning to ask, are they worth that? Snapchat was worth 16 Ilion

:19:49. > :19:53.dollars, according to the last round of investment in May, but one

:19:54. > :20:00.investor, fidelity has cut its valuation. It has a stake in the

:20:01. > :20:06.company and has cut it by 25%. Companies do have two hit the market

:20:07. > :20:15.and go for an IPO. Find they are floating at a value lower than had

:20:16. > :20:19.been expected. Square, the financial services Mobile payment products run

:20:20. > :20:29.by the man from Twitter. air coming out of the silicon tech

:20:30. > :20:35.bubble right now. The number of unicorns has spiked. They were

:20:36. > :20:46.supposed to be rare, now there are 150 of them. Facebook laser drones,

:20:47. > :20:56.for those who haven't heard about it, I love the project, isn't it

:20:57. > :21:00.called Project Lune? It is. But this is Facebook's plan to beam the

:21:01. > :21:05.Internet via drones and lasers to remote parts of the world. These two

:21:06. > :21:10.giants, they are flexing their muscles. They both want to show they

:21:11. > :21:13.are good people, good citizens and give the Internet to places that

:21:14. > :21:18.don't have it. But they want to be first. They are trying out

:21:19. > :21:25.extraordinary technology. The Facebook technology involves holding

:21:26. > :21:33.this single winked unmanned vehicle. It will be floating around,

:21:34. > :21:37.solar powered, firing a laser at it from the ground which has good

:21:38. > :21:48.Internet. They have a hidden aerial about the size of a US time coin. So

:21:49. > :21:51.extraordinary precision. Meanwhile, Google has got its plan to do the

:21:52. > :21:59.same thing, but using high altitude balloons. It is kind of shows, two

:22:00. > :22:04.companies that didn't exist 15 years ago doing extraordinary things and

:22:05. > :22:09.spending vast amount on technology. Facebook, another announcement, they

:22:10. > :22:17.have launched a new news at, notify, in the US. Trying to be a

:22:18. > :22:26.big force in news. Let's talk about the hacking case in the US. This

:22:27. > :22:32.dates back to last year. We knew JP Morgan, one of the great forces in

:22:33. > :22:37.world finance had suffered a major hacking incident. It was a big

:22:38. > :22:43.worry, on its domestic customers. You always hear great, colourful

:22:44. > :22:49.stories when the US authorities charge people. We had this great,

:22:50. > :22:51.long indictment outlining an extraordinary array of cyber

:22:52. > :22:58.criminality. For people charge, two of them Israelis. They have done a

:22:59. > :23:03.pump and dump operation using e-mails to send e-mails to people

:23:04. > :23:10.and pump up the price of stocks and sell them. Analysts at payment

:23:11. > :23:14.processing operation. Huge cyber crime enterprise, it shows how this

:23:15. > :23:20.whole thing is developing. Pump and dump! You don't want to pump and

:23:21. > :23:25.dump. Thanks very much, have a great weekend.

:23:26. > :23:28.In a moment we'll take a look through the Business Pages but first

:23:29. > :23:31.here's a quick reminder of how to get in touch with us.

:23:32. > :23:34.The Business Live page is where you can stay ahead with all

:23:35. > :23:38.We'll keep you up-to-date with all the latest details and

:23:39. > :23:41.inside analysis from the BBC's team of editors right around the world.

:23:42. > :23:45.Get involved on the BBC Business Live web page at BBC.com/business.

:23:46. > :23:48.And on Twitter we are at BBC business and you can find us

:23:49. > :24:06.Business Live on TV and online, whenever you need to know.

:24:07. > :24:15.We want to talk about robots? Yes, most of our jobs, potentially 15

:24:16. > :24:21.million can be done by robots. We asked viewers if their jobs could be

:24:22. > :24:32.done by robots. Most of them said no, because a robot will make

:24:33. > :24:41.mistakes. Journalism isn't under threat. We

:24:42. > :24:51.are safe! Robots are more mainstream? Yes, we have been warned

:24:52. > :24:58.of this. It is a massive shift. We're talking about 15 million jobs,

:24:59. > :25:01.the figure. Also it increases the gap between the haves and the

:25:02. > :25:08.have-nots. Those jobs that are not affected by robots will see their

:25:09. > :25:15.ways it -- wages rise but those that are, their wages will be driven

:25:16. > :25:18.down. Facebook in India. It blocks more content than everywhere else?

:25:19. > :25:27.Mark Zuckerberg was there last month. Although Facebook blocks the

:25:28. > :25:31.most in India, they get the most requests in the US about their

:25:32. > :25:35.users. A robot couldn't have done that because we're counting down on

:25:36. > :25:40.the clock. We have finished but we do have a bit of time. What do we do

:25:41. > :25:44.now? Have a great weekend.

:25:45. > :25:48.There will be more business news throughout the day on the BBC Live

:25:49. > :25:51.web page and on World Business Report.