13/11/2015 BBC Business Live


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


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


Friday 13th November. A growing mood of despondency in


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


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


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


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


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


technology advances. The global markets are opening this Friday.


Stocks are dried overnight and investors continuing to mull over


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


believe strikes can backfire on workers but there are some moments


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


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


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


uncertainty and insecurity that prevails in our country and for the


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


not repossess the homes. The government wants to write off


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


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


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


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


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


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


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


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


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


last stages before the Euro group will authorise another payment to


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


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


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


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


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


financial systems in reforms in the way that the banks


are run, two insulated them for -- from any


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


they have sufficiently strong foundations to provide the credit


that the private sector needs to expand. Therein made this


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


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


underlying. deterioration. We saw the slight


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


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


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


foreclosure. That foreclosure did happen and it has done further


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


having to default some of the spending. Thank you


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


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


last few months. According to preliminary numbers. The German


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


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


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


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


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


touch with internal investigations by then will be exempt from


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


found software that turned on emotions controls when the car was


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


factors combined have packed a strong punch against the resources


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


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


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


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


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


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


picture across the region were shares slumped. Those commodity


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


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


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


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


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


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


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


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


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


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


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


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


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


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


November. Finally, the Labor Department will release figures for


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


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


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


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


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


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


commentator called it yesterday. London is more exposed and therefore


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


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


companies are seeing the sheer browsers just continually fall. It


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


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


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


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


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


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


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


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


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


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


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


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


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


of former Northern Rock mortgages that taxpayers acquired


Tanya Beckett has more on this and joins us now.


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


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


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


crucial difference was how it was financed through the wholesale


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


stable. There were criticisms of the financial regulation authorities at


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


raising further questions about the soaring valuations


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


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


The last couple of years we have had this phenomenon in


they have managed to increase their valuations privately and then you


have these extraordinary billion-dollar valuation without


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


extraordinary technology. The Facebook technology involves holding


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


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


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


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


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


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


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


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


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


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


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


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


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


long indictment outlining an extraordinary array of cyber


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


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


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


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


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


dump. Thanks very much, have a great weekend.


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.


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


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


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


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


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


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


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


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


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


mistakes. Journalism isn't under threat. We


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


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


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


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


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


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


Mark Zuckerberg was there last month. Although Facebook blocks the


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


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


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


now? Have a great weekend.


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


web page and on World Business Report.


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