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