01/12/2015 BBC Business Live


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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


company. Bye-bye.


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