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This is Business Live from BBC News, with Ben Thompson and
From China to the US, countries are vying for a slice of the action and
now African leaders are pitching their most bankable projects
Live from London, that's our top story on Tuesday December 1st.
Africa is the world's fastest-growing region
for new foreign direct investment and today presidents from Malawi to
Mauritius, Uganda to Ghana will all competing for a slice of the $7
The Bank of England releases the results
of its latest round of stress tests - it finds Royal Bank of Scotland
and Standard Chartered the weakest of Britain's seven largest lenders.
And as always we will show you the winners and losers on the European
markets, following the gains in Asia.
And we'll examine the business of the box office.
The man behind The Hunger Games, The Twilight Saga and The Day After
Zygi Kamasa is the UK boss of entertainment giant Lionsgate.
And as the climate change conference continues in Paris, we want to know
what's the one thing you'd change to help the environment?
Use more public transport, cut down on your energy use, or recycle more?
Let us know, use the hashtag #BBCBizLive.
It seems like the smart money has its eyes firmly on Africa when it
Google's ploughed millions into the continent and China
and the US are falling over each other to lay their stake.
Now the heads of state from 10 African countries, from Malawi to
Mauritius, to Uganda and Ghana, are here in London to present their
countries most bankable projects to investors at the Global African
Investment Summit - $7-billion of investment is up for grabs.
Africa enjoyed a 65% increase in new capital investment in 2014,
with foreign direct investment totalling an estimated $87-billion.
Now a lot has been made of Chinese investment in the continent.
But as you can see here, they in fact only just make it into the top
Greece, I don't know where it gets the money from, but it is number two
on the list! Despite the recent instability
in the country, Egypt is still the number one destination
for that money, with Angola As you might expect,
a lot of that money is going into the oil and gas sectors,
but investment in real estate and communication infrastructure
and technology is also on the rise. Ivor Ichikowitz is the chairman
and founder of Paramount Group. It's
the largest privately-owned defence Nice to see you. Parent breaking
down some of the numbers there but what I would like to start with, if
you can give us an idea, breakdown Africa for us because there is still
being awful tendency for many people to think of Africa as a country, but
it is a continent made of so many different countries. 54 countries,
every single one different from a different banality, different
mindset, different opportunities, different people and different
energy, it is an incredibly alive, energetic continent, and the West
tends to see it as one country. Such a mistake. What are the different
opportunities? If you look at something on the scale of the
continent, so many different countries, different natural
resources, different populations, different economies, how did you
know as an investor where those opportunities are? Part of the
problem with Africa is it is so huge, so many different things that
you have to access, people think of it as a homogenous mass and they see
places like Egypt or Morocco as access points. Opportunities are in
every sector, we have one of the biggest growing populations in the
world. More than 1 billion people, 50% of which are under the age of
25. Can you imagine where that is going to go in the next ten years?
Investors today need to look at Africa not for what it is today but
what it will become in the next ten years, and I think the investment
opportunities, luxury goods, real estate, telecommunications, where
they are not today is extracted industries because I think they are
going down and we need to focus on industrialisation, creating jobs.
You just took the words out of my mouth! That is one of the issues,
you have got to create jobs in that economy. The people you just
mentioned, a big part of that would be manufacturing. Taking natural
resources to the next level and ultimately finishing the project but
it is not always in the interest of our major investors because they
want raw materials to feed their industries abroad. We need
partnerships between African investors, foreign investors to
create opportunities in Africa so we can create finished projects and
access the rest of the world while we give those partners access to our
markets as well. Many investors say the deterrent is that so much is
having to be invested in security across Africa to make sure that
assets are kept safe, is that still the case when it comes to this? This
is one of my personal interests, my company has invested all over the
ball but our biggest focus has been helping governments to create
institutions of security to protect assets that foreign investors are
investing in and encourage Africans to invest in their own economy and
assets that their Government can predict and feel comfortable in. It
is the biggest and most important issue and the world needs to embrace
it. It is the absolute key for us. Good to talk to you, I know that you
were at the summit later today. Good luck with it.
A BBC investigation has uncovered evidence of corruption and bribery
Panorama found British American Tobacco paid bribes
to politicians and civil servants in countries across east Africa.
The illegal payments even undermined a UN initiative
The company could face prosecution around the world
BAT says it does not tolerate corruption.
Japan's largest media group, Nikkei, has completed its purchase of the
It's the biggest international acquisition
Online subscriptions now account for around 70%
While questions have been raised about editorial independence,
the FT's chief executive believes the acquisition is a good fit.
A busy day of corporate news, plenty of details on the Business Live
page. We have been talking about the stress test, these are the stress
tests that the Bank of England puts UK banks under. All of them passing
today but two examples where they have called for more help and
certainly more resilience, down to the economy, low oil prices, that
sort of thing. And some stories in the UK, we have heard from Ofcom
about whether it should break up ET, British Telecom, the former
owned company. Sharon White discussing whether Open Reach should
be broken up. We
the service sector is on the up, which is what Beijing
trying to do? Yes, it is in the midst of this
rebalancing from a manufacturing and investment led a corner me to one
more investment on services. That in itself must be giving some comfort
to the power that be back in Beijing. But you cannot ignore the
fact that the Chinese economy is heading for its slowest growth in a
quarter of a century and many economists are concerned that the
mad of data we are getting every week, we get it so much, that it
will miss the data of -- the of 7%, which it has to hit to create
jobs for millions of Chinese people. Let's not forget
manufacturing sector is still a key gauge of how the economy is doing
and no doubt the country is trying to transition and rebalance itself
but it is still the driving force of economic grave and can create so
many jobs for people around the country.
Let's stay with the markets, Nico, the Hang Seng, not doing too bad.
Investors are looking at the fact that the decline I mentioned is
actually slowing, which could suggest all those measures taken by
the officials in Beijing have started to serve their purpose as
the economy shows signs of possibly levelling out.
Let's look at the European markets, doing as what -- doing what we
expected, tracking those Asian games. That is what is happening on
the European markets. Let's find out what should be making headlines of
the other side of the Atlantic. Here she is, let's go straight
over to Michelle in NY. Ahead of Friday's jobs report, the
snapshot of manufacturing will keep investors busy. The manufacturing
index is raised on Tuesday and weak global demand and the strong dollar
are believed to have had an impact. While it is unlikely to affect the
timing of the Federal Reserve's first interest rate rise, it could
affect the pace and size of future moves. For car-makers 2015 has been
strong, but will it end with a bang or a whimper? Monthly sales figures
are due out and there are signs that auto-makers are spending more to
market their cars to ensure that consumers continue to buy cars at a
fast rate. America's number two grocery chain will put its
popularity with Wall Street to the test by going public, expecting to
raise as much a $7 billion. Joining us is Jeremy Cook, chief
economist at World First. A busy day in terms of statistics
and figures, German unemployment, diverse and unemployment, UK and US
manufacturing. Let's look at unemployment first, we have seen big
swings in Europe in terms of who is doing better than others. Where are
we now? We are in a position, you rose and unemployment is 10%,
looking at that compared to the US and UK, still almost double the
levels we are seeing in those other economies, still dangerously high
levels in Greece, Spain still in the high 20s, so broad swathes of huge
unemployment. The refugee crisis in Europe makes an interesting
dynamic, people looking to come to settle to gain work. What does it
mean for you rose and employment? That will be key in 2016. The
European Central Bank watching this closely, what are we expecting, any
more announcements, the big bazooka? Exactly, how big can they
go? More negative rates on deposits to try to get banks lending,
possibly more quantitative easing, getting around these numbers, 30, 30
5 billion euros extra a month for an extra 12 month. They have two hit it
hard to weaken the euro. What is 35 billion euros between friends?!
Thank you for now. He's the man
behind the Hunger Games trilogy and Bend It Like Beckham, but is it all
Hollywood glamour and red carpet premieres for the man in charge
of production company Lionsgate? He'll be with us later
in the programme. You're with Business Live from
BBC News. This morning Britain's seven largest
lenders have been put through their paces in a Bank of England
stress test. Royal Bank of Scotland and Standard
Chartered were the weakest. They did still pass the test,
but were found not to have enough It's the second year the
Central Bank has subjected the UK's biggest lenders to tests to measure
whether they would survive This time, it was assumed that oil
had fallen to $38 a barrel and that John Thanassoulis is Professor
of Financial Economics at Well done!
He says overall it was a good result.
There were no big surprises. What it shows is we're out of the financial
crisis, so all of the banks have passed, although two came close to
not perfect, boil bags and and Standard Chartered, but they were
let three because they have plans to raise capital -- Royal Bank of
Scotland and Standard Chartered. This was about checking whether they
would be robust too, in particular, big problems in China and emerging
markets, which is why Standard Chartered, which does a lot of
business out there, was called up. What is interesting, we are not so
far out that the bank of England wanted to start raining in any of
the banks, no move on the capital before or buy to let lending.
Heathrow should be allowed to add a third runway
if it can prove it won't make air and noise pollution worse.
The Environmental Audit Committee also wants a ban on night flights.
The government has yet to confirm which airport it wants to expand
If you like your super-fast broadband maybe hold off
Watchdog Ofcom is warning that festive fairy lights can actually
They are launching an app that can check home broadband, along with
research that suggests wi-fi in six million homes and offices is
not running as fast as it could do possibly because of interference
from other electronic devices such as baby monitors, microwaves.
Our top story, the big grab for investment in Africa. We have got
the big African summit here. $7 billion of investment money up for
grabs. Leaders from African countries making their stake for the
money with investors and trying to encourage them, of course, to invest
in partnerships. It is about partnerships, not necessarily direct
investment, but working with local authorities to improve
infrastructure and telecoms. Some of the key areas for investment.
The number two country investing out of Europe, no, out of the world
investing in Africa? I should have been paying attention! Greece.
Greece. I'm not saying anymore. The business, the movie business, the
movie business is known for taking no prisoners.
And for those that do try their hand at it, success is often fleeting.
Not so for Zygi Kamasa, the UK chief executive of entertainment company
Lionsgate, he made his first movie in 1995 and in an innovative bid to
keep it "ultra-low budget," he raised the money for it through
crowd funding, an unknown concept at the time.
the independent film distribution company Redbus Film in 1995
which was behind the blockbuster hit Bend It Like Beckham.
Ten years later he sold Redbus Film to Lionsgate Entertainment Over
his career he has overseen the investment, production,
and distribution of over 350 films including some real big hitters like
The Expendables one and two, The Hunger Games and its sequels,
His films have earned 14 Oscar wins and 11 Bafta wins.
Zygi Kamasa Zygi Kamasa, the Chief Executive of Lionsgate UK and Europe
is with news the studio. Congratulations on the success.
There is a tendency, isn't there, when you look at a list of films
that you have dealt with, they are all sequels, they are trilogies,
they are films that have run before. There is that criticism, isn't
there, film companies aren't taking new risks and they are not looking
for new stuff, it is about more of the old trusted, tested, reliable
stuff S that fair? There has been a huge in the last five to ten years
of repo deucing moviesment the Hunger Games, there was three books.
We made it into four films. Fans wants to the whole trilogy of books
made into films. I don't think you can offer one type. We make
independent British films Bend It Like Beckham. We have a beautiful
Irish film out now. You have to offer people diversity to give
people a choice. To get into the industry and it is a quote you once
said. Did you have always have a passion for film and movies, you
said to get into the industry, you have got to do it, go and make a
movie? When I started my career, I was an entrepreneur who wanted to
get into the film business. I didn't have any training. I met someone who
said this is an idea of crowd funding. I thought it would be a fun
idea to get people to invest ?1,000 to partly to invest in it and to
appear in the movie. They were always extras in my first film in
1995. Talk us through the crowd funding
idea. As we said, almost unheard of in 1995 in terms of looking for
other people as a source of funding, not necessarily meaning to the
banks. How did that work? How did it go? Well, it was difficult once the
film was completed, what you ended up finding is there is 300 or 400
films made every year and crowd funding, it gave us the opportunity
to make the film and my, I made three films between 1995 and 1997.
One was profitable and the other two lost money. It gave the investors, I
did it through a tax break which was the early days of ES and the
investors got a tax break and none of them lost any money which in the
film business is a good thing to begin with.
I want to talk about what we are seeing in and the way we are
receiving our content as consumers and there is a lot of good
television out there. There is a series that everybody wants to get
into and watch. What impact is that having on film? Lionsgate is
involved in film? The Mad Men TV series which finished and Nashville
on Channel 4 and Manhattan and various TV shows. It is a big draw
for consumers today. It is becoming harder and harder to get consumers
to leave their comfortable lounge with a huge TV, where they have the
choice of TV series, you know, at the touch of a button now which is
why I think movies have been split in the last couple of years between
the big spectacles, the Hunger Games and the Bonds where people have to
go and see it and the smaller, intimate, dramas and our
that clearly helping to a certain extent. Talk us through what the UK
means for your business? Not only for audiences, but making films
here. The UK staging a resurgence? I think the UK sector is one of the
strongest production sectors in the world right now. It is one of the
best places in the world to make movies. The tax credit is a huge
boost for the industry. Right now, Star Wars are making three movies.
Harry Potter are booked up for the next three years and Mission
Impossible and they are all come together UK and it is circular, it
encourages the film crew to become better and better, work on the
better movies and they are now the best crew in the world, I think the
British crew and that's going to carry on for the next few years. We
could talk all day about it. Thank you very much, Zygi Kamasa, the boss
of Lionsgate in the UK. In a moment, we'll take a look
through the business pages of the newspapers, but first, as part of
the BBC's 100 women series, we've been meeting young businesswomen
from around the world. Samantha John is
the chief technology officer It's a mobile app enabling children
to create So what advice does she have
for others? As a female engineer sometimes there
is a higher bar for people to take you seriously. We make an app called
Hopscotch. It allows anyone to easily create their own programmes
on the iPad. Right now a lot of kids use T they are fearless. They will
just dive into something and start programming because no one told them
they can't. I'm Samantha John. I'm 29. My business is called Hopscotch
Technologies. Jeremy Cook from World First is
joining us again to discuss. Toy makers are tracking more data
about kids. We know what valuable information we would have as adults
hackers are interested in. What information do they want about kids?
Your ability to put in your name and your age and the names of your best
friends and if there is location taggen on that as there are tweets
and Facebook statuses for us adults. There maybe for uploading photos of
you playing in the garden and that thing. It seems to be that the
hackers out there at the moment don't quite know how to use what
they have got. Hacking can be from the various means and they can make
life more difficult for people, but staoumts it is purely for extortion
and cash and that's maybe the dark underbelly of this is our children
in the future will be targeted as a plaquemail option.
There is no avoiding it. I can imagine it. Unless every kid gets a
Slinky for Christmas. I love the Slinky.
Just talk us through what we are looking at. This is from HSBC,
apparently. This is a chart from HSBC plotting the productivity of a
person over their life cycle. As you can see, you reach your marginal
peak in the early 30s and late 20s and you top out when you start
spending your money as you probably retire and it is a very quick decent
to retirement. Our entire life in terms of money, earnings,
productivity, and there you can see that downward spiral. It is a pretty
big and pretty fast downward spiral. You tail off quickly. It is not, it
is the 1st December. It shouldn't be too depressing.
Jeremy, that's it from us. We will see you soon. Thank you for your