:00:11. > :00:13.This is Business Live from BBC News with Aaron Heslehurst and
:00:14. > :00:20.Russia prepares to crack down on trade with Turkey.
:00:21. > :00:23.But is it in danger of doing more damage to its own economy?
:00:24. > :00:25.Live from London, that's our top story
:00:26. > :00:41.Russia prepares for wide-ranging economic sanctions
:00:42. > :00:44.against Turkey after they downed one of their military jets
:00:45. > :00:50.And have you got that Black Friday feeling?
:00:51. > :00:53.From toasters to TV's, retailers are slashing prices today
:00:54. > :01:04.in a bid to get your cash, but is it worth the hype?
:01:05. > :01:10.As markets across Europe open we have the latest on the winners
:01:11. > :01:12.holiday but will open for a shorter trading day later.
:01:13. > :01:15.And we'll be getting the inside track on some of the biggest
:01:16. > :01:19.stories of the week, with our Business Editor Kamal Ahmed.
:01:20. > :01:25.the markets including the biggest merger in pharmaceutical history.
:01:26. > :01:28.Today we want to know what you think of Black Friday -
:01:29. > :01:49.Welcome to the programme. of time and money?
:01:50. > :01:56.It hopes to put in place sanctions against the country in the next few
:01:57. > :02:02.days - if the sanctions go ahead it's likely that both countries will
:02:03. > :02:05.lose out economically. The countries do $33 billion worth of trade each
:02:06. > :02:09.year - until events of this week that number was
:02:10. > :02:16.Now Prime Minister Dmitry Medvedev has called for a range
:02:17. > :02:19.of economic sanctions to be drafted within 2 days.
:02:20. > :02:24.There are fears the TurkStream gas pipeline project,
:02:25. > :02:27.which would supply Europe via Turkey, could be under threat.
:02:28. > :02:33.Russia has already advised its people not to travel to Turkish
:02:34. > :02:40.tourist resorts - normally the top destination for Russians.
:02:41. > :02:48..5 visited Turkey last year. -- 4.5 million.
:02:49. > :02:50.It's already stepped up checks on Turkish food products - and
:02:51. > :02:54.It's also putting pressure on Turkish businessmen.
:02:55. > :02:57.39 delegates at an agricultural exhibition have been deported
:02:58. > :03:06.Sir Andrew Wood, a Former British Ambassador to Russia and now an
:03:07. > :03:09.Associate Fellow with the Russia and Eurasia Programme at Chatham House.
:03:10. > :03:17.Thank you for coming in. We are talking about bans and restrictions,
:03:18. > :03:21.they could hit joint investments between the countries, including
:03:22. > :03:25.that people in. Do you think that Russia is in danger of cutting off
:03:26. > :03:32.its nose to spite its face? Certainly. It is developed a habit
:03:33. > :03:36.of sanctioning everybody. They are very unhappy with the Russian
:03:37. > :03:40.population because the main seem trivial but depriving yourself of
:03:41. > :03:45.tomatoes altogether, that is a blow to people. We looked last year at
:03:46. > :03:51.the bands and the sanctions on food from the EU. Turkey had come in and
:03:52. > :03:54.had been filling that Hall and feeding effectively the Russian
:03:55. > :03:58.population. Are the in a situation where we might see popularity fall
:03:59. > :04:03.for the Russian leader because of this? I think this is a temporary
:04:04. > :04:08.phase. It is silent noise without having the long-term significance
:04:09. > :04:14.yawned making the idea of the close Russian Turkish alliance rather
:04:15. > :04:23.promote. The Turkish pipeline was a periodical idea. -- theoretical. It
:04:24. > :04:30.did not have a great future. The trouble is both countries are ruled
:04:31. > :04:35.by similar types of people. People who are easily insulted making the
:04:36. > :04:40.decisions. It is difficult to find any kind of face-saving formula? The
:04:41. > :04:47.Russians are accusing the Turkish Prime Minister of corruption.
:04:48. > :04:51.Biggest temptation for the Turkish people to return that compliment. On
:04:52. > :04:57.a day-to-day basis, which could put a dent in the economy, that is
:04:58. > :05:05.energy. Correct me if I am wrong, 57% of Turkey's gas comes from
:05:06. > :05:13.Russia. Turkey also buys energy like steel, wheat, if Roger was to turn
:05:14. > :05:18.off some of its gas, they might start with 20%, what does Turkey do
:05:19. > :05:27.with its energy? There are other countries in the region that have
:05:28. > :05:32.gas and oil to spear. -- to spear. There is the potential for gas in
:05:33. > :05:37.the Mediterranean. It would be get another one mistake on the part of
:05:38. > :05:44.Russia. I do not see either country having a real interest in taking
:05:45. > :05:47.this too far. I wonder how unique this situation is. Two countries
:05:48. > :05:52.backing the opposite sides of the Serbian war but they are of huge
:05:53. > :06:01.economic importance to each other. -- Syrian. From the respect --
:06:02. > :06:06.perspective of most of us, Russia will back President Assad and in
:06:07. > :06:11.this case to attack Turkish cousins just over the border. It was
:06:12. > :06:15.careless of the Russians to go so close to the border whether you
:06:16. > :06:20.accept if they went over it. They were asking for trouble and behaved
:06:21. > :06:25.with arrogance towards Turkey. The Turks are not prepared to put up
:06:26. > :06:28.with that and neither is the Turkish president. We should not be
:06:29. > :06:30.surprised by what happened. Thank you very much for coming in and
:06:31. > :06:38.talking as through that. The publisher of Hong Kong's South
:06:39. > :06:41.China Morning Post has confirmed it In a filing to the stock exchange it
:06:42. > :06:48.says it has received a 'preliminary The BBC understands that Chinese
:06:49. > :06:52.e-ecommerce giant Alibaba is Mining giants BHP Billiton and Vale
:06:53. > :06:59.have rejected a UN report which says mud released
:07:00. > :07:01.in the Brazilian mine disaster A village was engulfed and
:07:02. > :07:08.at least 13 people were killed when a dam burst at the San Marco
:07:09. > :07:12.iron ore mine. UN experts earlier said there was
:07:13. > :07:17.evidence the flood contained "high levels of toxic heavy metals
:07:18. > :07:20.and other toxic chemicals". BHP though says
:07:21. > :07:23.the debris poses no danger. Consumer goods giant Unilever
:07:24. > :07:25.says it will switch to using Its also pledged to stop using
:07:26. > :07:31.coal for energy within five years. The announcement comes ahead of the
:07:32. > :07:35.global climate summit which begins in Paris on Sunday - where almost
:07:36. > :08:05.200 countries will try to agree It is Black Friday today. Ben is out
:08:06. > :08:10.at an electronic store. It is not curry as in the food. This is a very
:08:11. > :08:19.unscientific poll about who is shopping today. There is nobody in
:08:20. > :08:22.the shop he is in. It is not the scenes that we saw last year where
:08:23. > :08:27.people were pouring in and fighting each other over flatscreen
:08:28. > :08:40.televisions. He says are braving the coast today, 91% of the people he
:08:41. > :08:46.has surveyed have said, no. We've only really had one year of Black
:08:47. > :08:47.Friday. I was going to talk to you about something else. Let us move
:08:48. > :08:49.on. Let's take a look round the world
:08:50. > :08:52.at what business stories are making In China stocks have fallen sharply
:08:53. > :08:59.- closing down more than 5%. Let's get more on this from Rajeshni
:09:00. > :09:10.Naidu-Ghelani who is in Singapore. There is a series of reasons. If you
:09:11. > :09:14.are events have shaken the investor confidence in the mainland market
:09:15. > :09:19.today. First we had disappointing data which showed industrial profits
:09:20. > :09:26.fell 46% and it over from one year ago. Igniting concerns of the
:09:27. > :09:30.economy slowing down. 4.6%. And then a crackdown by regulators on
:09:31. > :09:34.leveraging. And the biggest security firms saw big losses because
:09:35. > :09:38.regulators said they were investing major brokerages. We know there is
:09:39. > :09:42.increased pressure on the trading firms since the dramatic sell-off of
:09:43. > :09:46.Chinese shares in the summer. It is a first batch that would make a
:09:47. > :09:49.debut next week which will draw more liquidity from the market. Investors
:09:50. > :09:53.in China have quite a bit to worry about today. Thank you very much.
:09:54. > :09:56.You have a good weekend. The big drop in Chinese industrial
:09:57. > :09:58.profits plus the lower value of China's yuan appear to have set
:09:59. > :10:01.off a wave of selling And the bigger concern is certainly
:10:02. > :10:12.the potential for China to steadily Also a fairly disappointing range
:10:13. > :10:24.of Japanese data released today, Europe - the euro continued to
:10:25. > :10:41.falter, hovering near 7month low. Europe - the euro continued
:10:42. > :10:44.falter, hovering near a 7 month On expectations that the European
:10:45. > :10:47.Central Bank could announce further Now in the US the markets have been
:10:48. > :10:53.closed because of Thanksgiving. Today people will be trying to work
:10:54. > :10:56.off some of that turkey dinner as they hit the high street and hunt
:10:57. > :10:59.for some Black Friday bargains. Black Friday is now slowly beginning
:11:00. > :11:02.to spread around the world with European shops increasingly
:11:03. > :11:04.embracing the sales day. Here's a little look at what it
:11:05. > :11:15.means in the US, the UK and China. The United States for Black Friday
:11:16. > :11:19.as the day before buying is given, it traditionally marked the holiday
:11:20. > :11:26.shopping season. Last year, 87 million people rushed to the stores
:11:27. > :11:28.shop online for the chance to save money, spending $9 billion. Whether
:11:29. > :11:31.you can call it the most famous shopping day is up for debate. Each
:11:32. > :11:38.year retailers are bringing your sales earlier and earlier to out
:11:39. > :11:44.competitors. British retailers decided to get in on the act. One
:11:45. > :11:48.major credit card company reckons we will spend nearly $3 billion in the
:11:49. > :11:53.UK today. One third more than last year. The question is could this be
:11:54. > :11:59.the peak, fights broke out last year and some retailers are scaling back.
:12:00. > :12:06.Asda, owned by Walmart, are not taking part. Here in Hong Kong, the
:12:07. > :12:10.big day for discount shopping has already passed. China does not
:12:11. > :12:16.celebrate Black Friday, instead it has what it calls single speed,
:12:17. > :12:23.we're on the 11th of November, online retailers offer discounts of
:12:24. > :12:27.up to 70% off regular prices. The online shopping giant Ali Bacher
:12:28. > :12:31.run-up purchases of more than 14 billion US dollars. Making single
:12:32. > :12:38.state a much bigger sales stayed on Black Friday.
:12:39. > :12:40.Joining us is Mike Amey, managing director
:12:41. > :12:56.James Newman said, the reduction should be 80% for Black Friday, not
:12:57. > :12:59.25%. It is not worth it, I is spending the day at Chatsworth
:13:00. > :13:09.house. If you want to know where James Newman as he is at Chatsworth
:13:10. > :13:13.house. Have a lovely day. The ongoing concerns that Chinese
:13:14. > :13:20.currency could be devalued, explained to us by the IMF is set to
:13:21. > :13:25.include the Chinese currency as part of its standard drawing rights in
:13:26. > :13:32.the Baskett by the 30th of November. What does that mean? The IMF is the
:13:33. > :13:38.entity that lends to countries that nobody else will lend money. They
:13:39. > :13:42.are the lender of last resort. It is the question of what cash will be
:13:43. > :13:47.IMF want to lend to a country. You have to lend them cash which has
:13:48. > :13:54.value in all markets. They define that as including the standard
:13:55. > :13:58.drawing rights. Dollars, euros, Stirling and again. The benchmark of
:13:59. > :14:04.the global trading currencies. Being in that gang is a good gang to be
:14:05. > :14:09.in. -- the Japanese currency. That is official confirmation you are in
:14:10. > :14:16.the top tier. The euro is having its worst run in history against the
:14:17. > :14:21.Chinese currency, what is going on? Is it to do with policy decisions?
:14:22. > :14:25.The Japanese and the Europeans have been trying to print cash to keep
:14:26. > :14:29.the economy is going. The Japanese have tempered down their enthusiasm
:14:30. > :14:33.for printing cash and the Europeans are going in the opposite direction.
:14:34. > :14:38.As the Europeans start printing more cash and the Japanese hold fire, the
:14:39. > :14:43.natural response is the value of the usual has to go down due to the
:14:44. > :14:51.amount in circulation against the yen. We will see that next week. Do
:14:52. > :14:55.come back. We have got lots of papers to get through.
:14:56. > :14:58.Still to come we look back at the weeks biggest business
:14:59. > :15:00.stories, including the biggest pharmaceuticals deal in history.
:15:01. > :15:07.The US drugs giant Pfizer sealed a deal to buy the Botox-maker
:15:08. > :15:10.Allergan for $160 billion at the start of the week.
:15:11. > :15:12.The takeover could allow Pfizer to escape relatively US corporate tax
:15:13. > :15:21.rates by moving its headquarters to Allergan's Dublin base.
:15:22. > :15:34.You are with this is live on BBC News. Let us take a look at some of
:15:35. > :15:38.the UK stories. Earlier this morning, cut-price deals were put
:15:39. > :15:45.online overnight, Black Friday, we have heard about the expectations,
:15:46. > :15:49.and our very own Ben Thompson, last week we talked to you. He was in
:15:50. > :15:58.Salford and now you are in an electric store, Currys, on your own.
:15:59. > :16:02.What have you done to everybody? Welcome to Brentford and it is Black
:16:03. > :16:06.Friday, no repeat of those big crowds that we saw last year, you
:16:07. > :16:12.remember those pictures fighting over this sort of stuff, it was
:16:13. > :16:19.televisions, laptops, washing machines, to try and get their hands
:16:20. > :16:22.on some of this. Nonetheless, it is Black Friday so that means that
:16:23. > :16:27.retailers are trying to get more people through their doors to get
:16:28. > :16:31.more money through. All of those scenes of people fighting last year,
:16:32. > :16:35.retailers are very keen not to see a repeat of that because it was not
:16:36. > :16:39.good for business and Black Friday actually cost businesses money, in
:16:40. > :16:46.terms of extra security, opening their doors earlier. There is also
:16:47. > :16:52.the issue of all of those orders that coming at the last minute
:16:53. > :16:57.whether they can get to people on time. We have got somebody from a
:16:58. > :17:01.credit card company, what is in this for retailers, because it strikes me
:17:02. > :17:08.that there is a lot of added cost, do they make money? It is a very
:17:09. > :17:12.good question, it is yet to be proven as a concept, this is a
:17:13. > :17:17.concept that came through several years ago. Last year it only read it
:17:18. > :17:22.came in, it is only going to work if you get value for the customer. The
:17:23. > :17:26.deals, that you had to wait after Christmas for, we are now seeing
:17:27. > :17:32.some of those in the period before Christmas. Thank you very much
:17:33. > :17:37.indeed: More from you later, that is the issue, expected to be the
:17:38. > :17:43.biggest shopping day of the year, ?1 billion, many people choosing to do
:17:44. > :17:49.it online, no reports, of websites going down online, more from us a
:17:50. > :17:56.bit later, I will see you soon. STUDIO: There are more BBC people
:17:57. > :18:08.down at that store than apparently shoppers! It will be me later. You
:18:09. > :18:12.are watching business live, Russia is preparing wide ranging economic
:18:13. > :18:17.sanctions against Turkey after Turkey downed one of its military
:18:18. > :18:19.jets on the border with Syria, the Prime Minister Dmitry Medvedev says
:18:20. > :18:24.that the measures will be drafted within days and it could also hit
:18:25. > :18:29.multibillion-dollar gas and oil investments. Let us get the inside
:18:30. > :18:34.track on some of the big stories that had been hitting the headlines
:18:35. > :18:38.this week. Our business editor joins to take us through lots of things,
:18:39. > :18:45.but we are going to start with the big drug steel, I was on air that
:18:46. > :18:52.day. We are talking about the maker of Viagra, bought the maker of
:18:53. > :18:57.Botox. There is a joke there somewhere, we will not
:18:58. > :19:04.repeat it at this time of the morning. Pfizer is taking over
:19:05. > :19:08.another one, the Chief Executive of Pfizer remains the chief executive
:19:09. > :19:14.of the increased size to business if it goes through, and it will be
:19:15. > :19:18.called Pfizer. But technically it is a reverse takeover, the smaller
:19:19. > :19:24.businesses actually taking over Pfizer, that allows for this taxing
:19:25. > :19:29.version which is a key for Pfizer, in terms of the wider deal. It can
:19:30. > :19:33.move its domicile from New York where the corporation tax rate is
:19:34. > :19:39.35%, to Ireland where the corporation tax rate is 12.5%, you
:19:40. > :19:43.do the maths. That is why Pfizer thinks it is so important. Has the
:19:44. > :19:50.US not being trying to crack down on this? Yes but if it is a reverse
:19:51. > :19:58.takeover the rules are different? They have tried to tax down -- they
:19:59. > :20:05.have tried to crack on this type of taxing version, but there is
:20:06. > :20:09.gridlock between Democrats and Republicans so despite Obama wanting
:20:10. > :20:13.to rain this in, on what critics say is avoiding American taxes on
:20:14. > :20:17.profits globally, there has been no agreement about it. But I think
:20:18. > :20:22.there is quite a high chance that politics will intervene on this deal
:20:23. > :20:25.and maybe change some of the terms of the deal because the break fee
:20:26. > :20:30.which is usually put at billions of dollars for this, is only $400
:20:31. > :20:35.million if there is a political reason why the deal does not go
:20:36. > :20:40.through. It looks like the deal will not complete until the end of next
:20:41. > :20:44.year, Hillary Clinton, presidential candidate, has already said that she
:20:45. > :20:49.does not like the has Bernie Sanders. There is quite a high level
:20:50. > :20:52.of political risk in the deal, investors are worried about that
:20:53. > :21:00.because both share prices fell immediately after the announcement.
:21:01. > :21:04.We did see that. The other big story was the spending review, although
:21:05. > :21:07.the latest round of cuts are shallower, the British State looks
:21:08. > :21:13.like it is taking on quite a different shape in the future?
:21:14. > :21:17.Absolutely there is a feeling that the British economy is growing
:21:18. > :21:21.faster than expected, interest rate payments on UK debt will be lower
:21:22. > :21:26.giving George Osborne Finance Secretary some room for manoeuvre.
:21:27. > :21:30.What was very interesting of course, this has dominated western economies
:21:31. > :21:35.across Europe, is the question security being so important. The
:21:36. > :21:39.British government announcing increased funding for the security
:21:40. > :21:43.services, no cut in the police services domestically. I think it
:21:44. > :21:48.shows how much, countries like Turkey and Russia, Paris, France,
:21:49. > :21:52.the UK, the economy is now have to be assessed with the issues of
:21:53. > :21:57.security and that is dominating really the economic discussion. We
:21:58. > :22:01.are going to have to leave it there, I'm afraid that we have run out of
:22:02. > :22:06.time but we will have you on the show I am sure in future as always.
:22:07. > :22:10.In a moment we will take you through the business pays is but first, a
:22:11. > :22:16.video that has been doing very well on the BBC website, it is about the
:22:17. > :22:21.Dulwich picture Gallery in London, one of the first to offer a reality
:22:22. > :22:24.tour of the collection. The very first visual visitors were young
:22:25. > :22:38.patients at the nearby Kings College. Take a look.
:22:39. > :22:44.Della mac it is an art gallery with pictures everywhere, it feels like
:22:45. > :22:49.you are everywhere. I have been to quite if you are at galleries, it is
:22:50. > :22:55.quite realistic, you do get the feel of being there and seeing all of the
:22:56. > :23:00.paintings, it is really cool. It is not as good as the actual thing, it
:23:01. > :23:04.is not as good as a proper art gallery. You can definitely tell kit
:23:05. > :23:06.is fake but for a little person they probably think it is the most
:23:07. > :23:15.amazing thing in the world. That was a very Joe Mattock end to
:23:16. > :23:20.the peace and you can see many more videos on our website. What other
:23:21. > :23:26.business stories have been taking the media by storm? We just want to
:23:27. > :23:31.start with this one, this is in the Wall Street Journal, this is all
:23:32. > :23:35.about South Korea and being able to do a bit of a U-turn when it comes
:23:36. > :23:43.to its Asian problem, too many men? That is
:23:44. > :23:48.right, this is a great story, for a number of years, there is a
:23:49. > :23:59.challenge of too many men, male births compared to female births,
:24:00. > :23:59.150 to 120. Thankfully, Korea has led some movements to address that
:24:00. > :24:12.and normalise things and issue than Korea, if you look at
:24:13. > :24:14.things like China, the one child policy, if career can make this turn
:24:15. > :24:25.and great news. And in one generation?
:24:26. > :24:30.Yes. Speaking of population control, an astonishing story in China daily,
:24:31. > :24:36.Beijing is vowing control over population growth, 21 million people
:24:37. > :24:40.and they want a ceiling of 23 million. How will they do it? In a
:24:41. > :24:46.controlled economy thereof ways that you can do that. In reality, the way
:24:47. > :24:53.that you do it is that you move parts of the state out of ageing,
:24:54. > :24:57.whether it be state enterprises, if you say, for any particular
:24:58. > :25:01.department, it is going to move out, I think that is how they will do it.
:25:02. > :25:06.People want to go to Beijing because it is the centre of the action. I
:25:07. > :25:20.don't know how much time we have got. Eddie Jones, joins, he is now
:25:21. > :25:25.the England rugby coach commie was the Japanese rugby coach, Japan
:25:26. > :25:30.famously beat South Africa in the Rugby World Cup. He has got a very
:25:31. > :25:34.big thank you courtesy of the private sector, joining the board of
:25:35. > :25:42.Goldman Sachs in Japan. If he was short of incentives, there is yet
:25:43. > :25:50.another want to encourage him. There you go. That is it I'm afraid, thank
:25:51. > :25:56.you very much. You are going off to a shop to do some broadcasts. Will
:25:57. > :26:03.you pick me up something. That is it from business live, goodbye.