13/11/2015 BBC Business Live


13/11/2015

Similar Content

Browse content similar to 13/11/2015. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is BBC business live with us. Still in crisis, street clashes in

:00:08.:00:19.

Athens. Looks like back towards recession. That is our top story on

:00:20.:00:23.

Friday 13th November. A growing mood of despondency in

:00:24.:00:41.

Greece. The country's waiters GDP figures are out in a few hours' time

:00:42.:00:47.

and they are expected to show that its economy contracted 1% compared

:00:48.:00:51.

to the last few months, waiting at the growth of the past few months.

:00:52.:00:57.

The robots, they are coming. Could the be taking your jobs, 50 million

:00:58.:01:03.

jobs. That is the warning of the Bank of England's chief economist as

:01:04.:01:08.

technology advances. The global markets are opening this Friday.

:01:09.:01:17.

Stocks are dried overnight and investors continuing to mull over

:01:18.:01:21.

the rate hike in America next week. We are joined by our tech experts

:01:22.:01:28.

who will give his take on the new tech stories this week. We want to

:01:29.:01:33.

know, what do you reckon about robots taking over? Could a robot do

:01:34.:01:39.

your job? Let us know. Just use this hash tag.

:01:40.:01:50.

A warm welcome to the programme. We start with Greece. Growing fears

:01:51.:01:57.

that the country is slipping back into the session. Some are blaming

:01:58.:02:03.

the austerity imposed by the EU and the IMF. Others, a failure by Athens

:02:04.:02:08.

to stick to its reforms. Either way the suffering of the Greek people

:02:09.:02:13.

are set to continue. Let's take a look at the numbers involved. Greece

:02:14.:02:18.

return to economic growth last year after year slump. But it looks like

:02:19.:02:25.

that recovery is over. GDP figures for the three months to September,

:02:26.:02:29.

they are out in just a few hours from now. They are expected to show

:02:30.:02:34.

that the economy contracted around 1% compared to the last three

:02:35.:02:38.

months. Wiping out the growth that we saw in the previous quarter. It

:02:39.:02:43.

is a trend that could be set to continue. Both the European

:02:44.:02:48.

Commission and the OECD warned that Greek GDP will end the year down,

:02:49.:02:53.

1.4%. With a similar fall coming again next year. This is the real

:02:54.:02:58.

worry fight, a quarter of the Greek workforce, they are still

:02:59.:03:04.

unemployed, without jobs, about twice the EU average and almost

:03:05.:03:09.

twice of those under 25 are under -- without a job still. Greece was

:03:10.:03:17.

paralysed by a new strike. 25,000 protesters taking to the streets in

:03:18.:03:22.

central Athens. Trade union leaders and many Greeks say they have turned

:03:23.:03:28.

on the Prime Minister and his party 's -- accusing them of caving into

:03:29.:03:37.

lenders. Andrew Walker joins us this morning. Before we start, we have

:03:38.:03:43.

got some comments from some of the process -- the protesters from

:03:44.:03:46.

yesterday in Athens. This is what they had to say about austerity. I

:03:47.:03:51.

believe strikes can backfire on workers but there are some moments

:03:52.:03:54.

when people need to react. This is the time when people need to react.

:03:55.:03:59.

Enough already with the taxes, enough with the double top. They

:04:00.:04:06.

need to letters breeze. It is an expression of worry about the

:04:07.:04:10.

uncertainty and insecurity that prevails in our country and for the

:04:11.:04:13.

living standards of our society and people. -- -- let us breeze. The

:04:14.:04:21.

Greek people must rise up and take to the streets because the situation

:04:22.:04:25.

is only going to get worse. These measures that the government wants

:04:26.:04:28.

to pass our measures that will be areas. -- that will bury us. Andrew,

:04:29.:04:43.

as outsiders watching, hang on, they had a referendum in Greece. They

:04:44.:04:50.

gave the thumbs up for the government to stay in the EU, to

:04:51.:04:55.

accept the bail out. This money does not come from free and now they are

:04:56.:05:00.

protesting again! There is no question that the short-term impact

:05:01.:05:05.

on austerity does aggravate an economic downturn. There is a big

:05:06.:05:09.

debate to be had whether you are laying the foundations are not for

:05:10.:05:15.

stronger growth in the future. But, you have to bear in mind, even

:05:16.:05:21.

though there was support for this is a party in the election, they did

:05:22.:05:27.

have a mandate to negotiate with the EU, there were a lot of people

:05:28.:05:43.

voting against it. -- Syriza party. There are others in the EU zone who

:05:44.:05:48.

are vocally saying, Athens, we have had enough of this. One of the

:05:49.:05:53.

sticking points at the moment is that it seems that the government

:05:54.:05:57.

wants to allow people, if they do not pay their mortgages, they will

:05:58.:06:01.

not repossess the homes. The government wants to write off

:06:02.:06:06.

people's mortgages. The European Union and the IMF wants to see

:06:07.:06:11.

tougher rules that will enable banks to foreclose, to repossess homes,

:06:12.:06:18.

when borrowers are in default for a long enough period. It is

:06:19.:06:22.

politically very sensitive, there is a question about it. It is a general

:06:23.:06:28.

and a very sad fact of life in most economies, that if you do get into

:06:29.:06:33.

serious enough arrears on a home loan, you end up losing it. But this

:06:34.:06:38.

is one of the main big outstanding issues. I think the view in the rest

:06:39.:06:43.

of the Euro group is that Greece has made a lot of progress, they have

:06:44.:06:48.

had several payments of money. And what we are looking at now is the

:06:49.:06:54.

last stages before the Euro group will authorise another payment to

:06:55.:06:59.

Greece and in particular the release of up to 10 million euros to

:07:00.:07:04.

recapitalise the banks. Let's talk about that. Currently there is this

:07:05.:07:12.

2 billion euros package. The recapitalisation of the banks, the

:07:13.:07:16.

restructuring of the banking system, that is something that the troika

:07:17.:07:22.

are seeing is vital. We are still not seen the sort of overhaul of the

:07:23.:07:24.

financial systems in reforms in the way that the banks

:07:25.:07:39.

are run, two insulated them for -- from any

:07:40.:07:43.

the big question is simply getting the capital into the banks so that

:07:44.:07:48.

they have sufficiently strong foundations to provide the credit

:07:49.:07:52.

that the private sector needs to expand. Therein made this

:07:53.:07:55.

deterioration we have seen in the economy that will be confirmed in

:07:56.:08:02.

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

:08:03.:08:03.

underlying. deterioration. We saw the slight

:08:04.:08:09.

return to growth in the last quarter. The previous quarter, up

:08:10.:08:14.

one view of what happened there was that may be a fair amount of

:08:15.:08:20.

spending driven people getting out -- money out of the bag before

:08:21.:08:24.

foreclosure. That foreclosure did happen and it has done further

:08:25.:08:31.

damage to the economy. -- out of the bank. We have discussed the lenders

:08:32.:08:39.

having to default some of the spending. Thank you

:08:40.:08:43.

Andrew. Let's touch on some of the other stories making headlines. We

:08:44.:08:48.

will start with the German economic growth. It slowed slightly in the

:08:49.:08:50.

last few months. According to preliminary numbers. The German

:08:51.:09:01.

economy exploded by 0.3% in that July-September period. Compared to

:09:02.:09:10.

growth. They had growth of 0.4% in the previous quarter, that is why we

:09:11.:09:14.

are seeing this load a little bit. Let's stay in Germany, Volkswagen,

:09:15.:09:21.

it set as 30th November deadline for staff with knowledge about those

:09:22.:09:25.

diesel emission test cheating to come forward. Workers who get in

:09:26.:09:29.

touch with internal investigations by then will be exempt from

:09:30.:09:35.

dismissal according to a letter from the branch chief. US regulators

:09:36.:09:40.

found software that turned on emotions controls when the car was

:09:41.:09:45.

being tested. -- emissions controls. Talking about Volkswagen, let's talk

:09:46.:09:54.

about the Tabby. This just keeps going. What have they set aside, at

:09:55.:10:04.

?7.5 billion. September the AT that scandal broke. That is not going to

:10:05.:10:08.

be enough money. This is a story about Brazil, they have fined

:10:09.:10:15.

Volkswagen 13 million dollars in Brazil. The Prime Minister of India

:10:16.:10:20.

is in the country at the moment here. But Belgium does more trade.

:10:21.:10:28.

Diamonds. It is day two of that three-day visit. Let's go to

:10:29.:10:36.

Singapore. She is going to talk about the markets. We point one

:10:37.:10:43.

finger at the word commodities. Asian shares took a big hit today

:10:44.:10:49.

from swamping commodity prices. The prices of key commodities, oil,

:10:50.:10:54.

copper and gold all failed to multi-year lows overnight because

:10:55.:10:57.

there are list of growing concerns. First there, there is oversupply

:10:58.:11:02.

issues in the sector because of slowing demand from China. Then

:11:03.:11:06.

there is the likelihood of the Fed raising interest rates in the US in

:11:07.:11:11.

December which is bad. It strengthens the US dollar. These

:11:12.:11:15.

factors combined have packed a strong punch against the resources

:11:16.:11:20.

sector here. Shares are down, most in Hong Kong. Glencoe shares tumbled

:11:21.:11:27.

over 7%. There is the big Sydney listed miners that fell almost 2%.

:11:28.:11:33.

Not a good day for the commodities sector today. No, indeed. Let's stay

:11:34.:11:39.

in Asia, Japanese stocks slipped on Friday. They are snapping a

:11:40.:11:44.

seven-day winning streak as investors shunned risk and cashed in

:11:45.:11:48.

on recent gains after a sharp drop on Wall Street. It was a similar

:11:49.:11:51.

picture across the region were shares slumped. Those commodity

:11:52.:11:57.

prices plunging to multi-year lows and worries that slowing global

:11:58.:12:02.

growth may worsen as supply glut. US Federal Reserve officials kept

:12:03.:12:06.

beating the drum for a rate hike next month. Here in Europe, shares

:12:07.:12:11.

following suit, opening the work. The FTSE and London down half a

:12:12.:12:17.

percent. Focused on what central bankers have them sing on both sides

:12:18.:12:21.

of the Atlantic, with Janet Yellen on Thursday not giving too much

:12:22.:12:26.

away. We can find out more now about what is making headlines in the

:12:27.:12:30.

business world across the pond. After a weak performance by Macy's

:12:31.:12:34.

earlier in the week, we will find out how department store JCPenney

:12:35.:12:38.

cork performed on the third quarter. It is expected to beat analyst

:12:39.:12:45.

estimates, helped by higher sales in half of its stores. We will get a

:12:46.:12:51.

look at US retail sales in October. Analysts believe Americans kept

:12:52.:12:54.

spending on cars and other goods, making it a stronger month in

:12:55.:12:59.

September. Data is expected to show that consumer sentiment is up in

:13:00.:13:03.

November. Finally, the Labor Department will release figures for

:13:04.:13:09.

October. It usually gets passed onto consumers. That will give us a peek

:13:10.:13:14.

on inflation and whether or not it is headed in the direction of the

:13:15.:13:20.

Fed2% target. Richard Fletcher joins us. Let's continue on because it is

:13:21.:13:28.

the commodities theme. A problem from London's main market, the FTSE.

:13:29.:13:34.

The FTSE is down around 6% since the beginning of the year. That is

:13:35.:13:41.

because we are more exposed. We have seen commodity carnage as one market

:13:42.:13:45.

commentator called it yesterday. London is more exposed and therefore

:13:46.:13:50.

a lot of these companies are plays on the price of raw materials they

:13:51.:13:57.

produce. Oil is touching 6.5 year lows, not surprisingly these

:13:58.:14:01.

companies are seeing the sheer browsers just continually fall. It

:14:02.:14:06.

has affected markets around the world. I want to ask you about some

:14:07.:14:11.

of the European data. GDP numbers for France, Germany, Italy, Greece,

:14:12.:14:18.

coming in at ten o'clock. What are you expecting? We get nine countries

:14:19.:14:24.

updated and then we get the overall numbers which is meant to be 0.4%.

:14:25.:14:30.

France has returned to growth, good news. Germany was disappointing,

:14:31.:14:37.

there Gross has stalled. It was expected. -- their growth. The

:14:38.:14:46.

eurozone number as a whole, comes ahead of more information from the

:14:47.:14:50.

European Central Bank. Richard, many thanks. Are you going to come back

:14:51.:14:56.

into the papers? We will talk to you shortly. We are joined by our tech

:14:57.:15:02.

guru who will take us through all the tech stories like the Facebook

:15:03.:15:06.

one, the drones. The laser drones that beam out the Internet, can you

:15:07.:15:12.

imagine? You are here with BBC business live here on BBC News.

:15:13.:15:18.

Now, it's been announced that the government has sold ?13 billion

:15:19.:15:20.

of former Northern Rock mortgages that taxpayers acquired

:15:21.:15:22.

Tanya Beckett has more on this and joins us now.

:15:23.:15:33.

What more can you tell us about Northern Rock? Northern Rock have

:15:34.:15:39.

been running up a nice little asset book so had been loaning mortgages.

:15:40.:15:46.

It had become the fifth largest lender in that area. It was for the

:15:47.:15:52.

crucial difference was how it was financed through the wholesale

:15:53.:15:55.

market. It didn't have people depositing money. So it was less

:15:56.:16:02.

stable. There were criticisms of the financial regulation authorities at

:16:03.:16:05.

the time for not spotting it and therefore how it was exposed. We

:16:06.:16:09.

know it had to be saved by the government. Some of its assets went

:16:10.:16:14.

into virgin money and some were bought by the government, with the

:16:15.:16:18.

hope that as the economy recovered, those assets would become more

:16:19.:16:24.

recoverable. That seems to be the case. It went into a sort of bad

:16:25.:16:29.

bank and now the government says it has sold 85% of those assets and 13

:16:30.:16:38.

billion to a private equity firm. That private equity firm has sold

:16:39.:16:42.

some of it onto the TSB. So why couldn't the government sell it on

:16:43.:16:49.

to the TSB straightaway. That's where we are with that. Any hopes it

:16:50.:16:53.

was going to pay down vast amounts of public debt should be put in

:16:54.:17:02.

context. Public debt is about one trillion pounds. Also the UK

:17:03.:17:07.

Government has to sell off the remainder of The Royal Bank of

:17:08.:17:12.

Scotland, it still owns a 73% stake in that and it is open to question

:17:13.:17:15.

as to how much it will get for it. The word is it will make a loss. But

:17:16.:17:20.

on the sale of assets, it made a profit, about a quarter of a

:17:21.:17:28.

billion. Thank you, Tanya Beckett. Do you like same-day delivery?

:17:29.:17:35.

I love it. Amazon, order before six p.m., next day it is in the hand.

:17:36.:17:42.

We are fully paid-up members of the want it now generation.

:17:43.:17:46.

Amazon leading the way, but other companies already doing it, we want

:17:47.:17:50.

it now. Don't want to wait, don't want to wait!

:17:51.:17:53.

An economy choked by austerity, or one that's just failed to reform?

:17:54.:18:00.

The latest growth numbers coming out of Greece are expected to show it's

:18:01.:18:05.

And now its been a busy week for tech stories. Facebook announced it

:18:06.:18:18.

was working on laser drones that will beam high-speed internet access

:18:19.:18:20.

The US charged four men in one of the biggest hacking case

:18:21.:18:27.

Snapchat got marked down by one of its most high-profile investors,

:18:28.:18:34.

raising further questions about the soaring valuations

:18:35.:18:38.

And we can't not mention it, China singles day -

:18:39.:18:47.

The last couple of years we have had managed to sell a record $14.3

:18:48.:19:16.

The last couple of years we have had this phenomenon in

:19:17.:19:21.

they have managed to increase their valuations privately and then you

:19:22.:19:25.

have these extraordinary billion-dollar valuation without

:19:26.:19:38.

ever going to the market. A lot of these companies, people are

:19:39.:19:41.

beginning to ask, are they worth that? Snapchat was worth 16 Ilion

:19:42.:19:48.

dollars, according to the last round of investment in May, but one

:19:49.:19:53.

investor, fidelity has cut its valuation. It has a stake in the

:19:54.:20:00.

company and has cut it by 25%. Companies do have two hit the market

:20:01.:20:06.

and go for an IPO. Find they are floating at a value lower than had

:20:07.:20:15.

been expected. Square, the financial services Mobile payment products run

:20:16.:20:19.

by the man from Twitter. air coming out of the silicon tech

:20:20.:20:29.

bubble right now. The number of unicorns has spiked. They were

:20:30.:20:35.

supposed to be rare, now there are 150 of them. Facebook laser drones,

:20:36.:20:46.

for those who haven't heard about it, I love the project, isn't it

:20:47.:20:56.

called Project Lune? It is. But this is Facebook's plan to beam the

:20:57.:21:00.

Internet via drones and lasers to remote parts of the world. These two

:21:01.:21:05.

giants, they are flexing their muscles. They both want to show they

:21:06.:21:10.

are good people, good citizens and give the Internet to places that

:21:11.:21:13.

don't have it. But they want to be first. They are trying out

:21:14.:21:18.

extraordinary technology. The Facebook technology involves holding

:21:19.:21:25.

this single winked unmanned vehicle. It will be floating around,

:21:26.:21:33.

solar powered, firing a laser at it from the ground which has good

:21:34.:21:37.

Internet. They have a hidden aerial about the size of a US time coin. So

:21:38.:21:48.

extraordinary precision. Meanwhile, Google has got its plan to do the

:21:49.:21:51.

same thing, but using high altitude balloons. It is kind of shows, two

:21:52.:21:59.

companies that didn't exist 15 years ago doing extraordinary things and

:22:00.:22:04.

spending vast amount on technology. Facebook, another announcement, they

:22:05.:22:09.

have launched a new news at, notify, in the US. Trying to be a

:22:10.:22:17.

big force in news. Let's talk about the hacking case in the US. This

:22:18.:22:26.

dates back to last year. We knew JP Morgan, one of the great forces in

:22:27.:22:32.

world finance had suffered a major hacking incident. It was a big

:22:33.:22:37.

worry, on its domestic customers. You always hear great, colourful

:22:38.:22:43.

stories when the US authorities charge people. We had this great,

:22:44.:22:49.

long indictment outlining an extraordinary array of cyber

:22:50.:22:51.

criminality. For people charge, two of them Israelis. They have done a

:22:52.:22:58.

pump and dump operation using e-mails to send e-mails to people

:22:59.:23:03.

and pump up the price of stocks and sell them. Analysts at payment

:23:04.:23:10.

processing operation. Huge cyber crime enterprise, it shows how this

:23:11.:23:14.

whole thing is developing. Pump and dump! You don't want to pump and

:23:15.:23:20.

dump. Thanks very much, have a great weekend.

:23:21.:23:25.

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

:23:26.:23:28.

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

:23:29.:23:31.

The Business Live page is where you can stay ahead with all

:23:32.:23:34.

We'll keep you up-to-date with all the latest details and

:23:35.:23:38.

inside analysis from the BBC's team of editors right around the world.

:23:39.:23:41.

Get involved on the BBC Business Live web page at BBC.com/business.

:23:42.:23:45.

And on Twitter we are at BBC business and you can find us

:23:46.:23:48.

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

:23:49.:24:06.

We want to talk about robots? Yes, most of our jobs, potentially 15

:24:07.:24:15.

million can be done by robots. We asked viewers if their jobs could be

:24:16.:24:21.

done by robots. Most of them said no, because a robot will make

:24:22.:24:32.

mistakes. Journalism isn't under threat. We

:24:33.:24:41.

are safe! Robots are more mainstream? Yes, we have been warned

:24:42.:24:51.

of this. It is a massive shift. We're talking about 15 million jobs,

:24:52.:24:58.

the figure. Also it increases the gap between the haves and the

:24:59.:25:01.

have-nots. Those jobs that are not affected by robots will see their

:25:02.:25:08.

ways it -- wages rise but those that are, their wages will be driven

:25:09.:25:15.

down. Facebook in India. It blocks more content than everywhere else?

:25:16.:25:18.

Mark Zuckerberg was there last month. Although Facebook blocks the

:25:19.:25:27.

most in India, they get the most requests in the US about their

:25:28.:25:31.

users. A robot couldn't have done that because we're counting down on

:25:32.:25:35.

the clock. We have finished but we do have a bit of time. What do we do

:25:36.:25:40.

now? Have a great weekend.

:25:41.:25:44.

There will be more business news throughout the day on the BBC Live

:25:45.:25:48.

web page and on World Business Report.

:25:49.:25:51.

Download Subtitles

SRT

ASS