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This is Business Live from BBC News with Ben Thompson and Sally Bundock.
Imports and exports to and from the world's second largest economy
continue to fall, fuelling concerns of a hard landing.
Live from London, that's our top story on Tuesday December the 8th.
Made in China is selling globally at a slower rate, and the Chinese
It's the wrong trend that is gathering momentum.
Is this the world's biggest ever sponsorship deal?
Basketball superstar LeBron James signs a lifetime contract with Nike,
the first such deal ever signed by the sporting goods giant.
And financial markets are quite worried about the news out of China,
and oil prices continue to bump along the bottom. We'll talk to you
about the winners and losers. And the battle
for our books this Christmas. We hear from the boss of e-reader
firm Kobo on the battle with And LeBron James becomes Nike
for life in a deal said to be worth Nice work if you can get it,
but is that too much? Get in touch -
use the hashtag #BBCbizlive. We start with China, the latest news
on trade. Both exports and imports declined
in November compared with The big question now is
whether or not the cooling economy will face a hard or soft landing
in the coming months and years. Chinese trade last year was worth
$4.3 trillion, making it the world's largest trader, a title it took
from the United States in 2013. Those figures disguise
a big problem, though. China saw imports drop
for a record 13th month in a row in November, down 8.7%
on the same time a year before. The falling import numbers suggest
domestic demand is not as strong And as you can see here,
the rate of Chinese growth has been coming down from the heady heights
of over 12% in 2010 to less than 7% The Chinese government is attempting
to shift the economy to one that is fuelled by consumer demand,
as seen in the West. However these latest figures
demonstrate this is not Our correspondent
in Beijing is Celia Hatton. How worried should we be by a
slowdown in those How worried should we be by a
slowdown in those figures? These numbers really just tell us that the
decline in the Chinese economy is continuing. Some analysts were
hoping that the numbers would a little bit, and maybe that would
just show the numbers in the fourth quarter would plateau altogether. So
we have seen declines in exports and imports. Imports in particular are
down across all major markets except to South Korea -- exports are down.
And import numbers, although better-than-expected, they are also
down, so it is not looking good for the Chinese economy. What are people
saying? Are they worried about the future? We know that economic growth
relies on confidence, it relies on people spending, and that
rebalancing of the Chinese economy will rest on whether people feel
confident to go out and spend and consume. They feeling about the
state of the economy? It depends on who you ask. If you listen to the
Government line, the government is saying, they are saying they knew it
was going to happen and are trying to refocus the economy and aim for
slower and medium long-term growth. The Government is saying that they
are still on track for China to hit its economic growth targets of 7%.
So it is really trying to reassure people, but yes, people on the
ground are concerned. It is quite a big worry, and we can really see
this were we look at Chinese savings rates. Chinese people save much more
individually than many people in many other countries around the
world, and most people say, that is because there is this insecurity,
this need to save for the future, this need to save for retirement
prop cos there is no real confidence that the government will provide a
safety net. But this is something we have seen for the past few years,
this economic slowdown is set to continue to 18 months, some analysts
say. Celia Hatton, thank you very much.
They have put out a red alert warning for the first time.
Internet firms including Google and Amazon operating in the EU
will be forced to report serious security breaches under
Reuters says EU countries have agreed to report any issues, for
companies in critical sectors such as transport, energy and finance.
The price of oil has fallen to its lowest level since 2009 as global
The price of US light crude sank to $37.65 a barrel, down 5.8%, while
The slumping price comes as Opec, a group
of the largest oil-producing nations, refused to cut oil
Financial regulators in Japan have recommended more penalties
The Securities Commission says the electronics giant should be
slapped with a record $60 million fine
over a massive accounting violation where the firm inflated profits by
around 155 billion yen over seven years.
Let's take you to the business live page. -- the Business Live page.
Stay with me, it is there. Air France on target despite the attacks
in Paris that knocked 50 billion euros of its revenue that month. --
50 million euros. But it says despite that, it is still on track
for growth in passenger numbers. They had such a difficult year
anyway because of disputes with various unions and parts of Air
France and KLM as they try to restructure. Not an easy year for
them. Here in the UK, flooding is dominating the headlines after a
deluge of rain over the last few days. But already now concern,
talking about concerns over insurance and whether people are
properly insured in high-risk flood areas. A new insurance organisation
is good to be set up to be able to offer insurance to people in high
risk areas, but it won't start until April 2016, despite being agreed in
principle in 2013. There is too much legislation that has to go through
Parliament to make it happen. Not good news for people struggling with
insurance claims. Let's take you to Asia now,
where Japan has avoided Sharanjit Leyl has the details in
our Asia Business hub in Singapore. It is down, now it is up? What is
going on? That is right. They narrowly dodged a technical
recession in that last quarter. They have the economy figures showing a
contraction, and this will be a really welcome relief to
policymakers who have been trying to lift Japan's economy from the
doldrums. They have put in place aggressive stimulus measures aimed
at re-inflating the economy, and the Government have really been
pressuring companies to try to invest more of their record
properties to put the economy on a sustained recovery path, and they
have been warned by rising capital expenditure, which was a key
component of the upgrade. There was also some good news on the trade
front, posting a trade balance surplus.
Thank you very much, Sharanjit Leyl in Singapore. The situation in Asia
today was quite grim, Japan down 1% and Hong Kong 1.3%, and all of this
was about the news out of China which Celia and Ben have discussed
so far. It didn't really help markets in Tokyo. Europe following
the trend in Asia. All the markets in Europe down, so a sea of red
here, too. The fact that oil prices are so low, other commodity prices
so low, not helping either. So the sentiment is pretty negative right
now. Michelle Fleury is in New York for us.
The job prospects and labour turnover survey will help to answer
the question this Tuesday. Lots of Americans are quitting their jobs,
this may be and this would be yet another indication of improving
economic health. Turning to the housing market, the world's largest
home improvement retailer, Home Depot, will lay out its financial
targets for the next three years. And for a snapshot of the financial
industry, the bosses in Deutsche Bank and Wells Fargo are among the
top banking brass attempting to speak.
Michelle Burger in New York for us. -- Michelle there in New York. Let's
pick up an oil. Opec have kept the taps open, oil is flowing and prices
are falling. Good news and bad news. Good news for consumers and bad news
for countries producing it and the inflation around the world. It is a
balance between winners and losers. But what this is about is an intense
battle for market share. Saudi Arabia said it will not cut its
production even if the oil price does fall to $20 a barrel. Iran is
coming back into the equation as they return to markets after
sanctions, and Russia has continued to pump oil, so all of these factors
mean there is too much supply and too little demand.
In terms of the effect on global markets, there is plenty of good
reasons why this is good news. Someone arguing the United States
where money spent on gasoline is a pretty big part of people's outgoing
is, it is good news there in terms of people having more money to
spend. But then we have the Chinese trade numbers out as well. Just put
it all in perspective for us. Low oil prices are good for the
consumer, and it means prices at the pumps are low, but the reasons
markets are down is because markets are interpreting this low oil price
as a sign that global growth is slowing. Add to that the Chinese
data, which also shows China is a big consumer of resources and is
also slowing, that is really weighing on market sentiment.
How worried need we be about China? We always talk about America
sneezes, the world catches a cold. Is it the same with China? It is an
important destination for our goods but also what we buy from China.
Should the world economy worry about China when it is coming off such a
high? It is slowing significantly, but not the same level we have seen
in Europe or the US. Is important to distinguish where the slowdown is.
We need to look at infrastructure, imports, exports. But we are not
seeing such a slowdown in the services sector, health care,
education. Those are the really important sectors. I know you will
talk us through some of the other story is a little later, but for
now, thank you. Still to come: Have you got one of these on your
Christmas list? We will be hearing from the Canadian company Cobo --
Kobo, over the battle for the e-book business. First, with that massive
event just how many days away, my children are counting, many will be
welcoming a pay rise over the next few months to pay for it all. So we
do have some good news. Salaries in the UK are expected to rise by 2.5%
next year in real terms, with workers in the retail sector feeling
the benefit the most. But at the other end of the scale, public
sector workers are still expected to see their pay frozen. Let's talk to
Ben frost about this, a consultant with the group but have come up with
the research. Nice to have you on the programme. Just tell us more
about wages in the UK next year in real terms, up by 2.5%. Surely that
has to be good news? Pay increases, roughly where the key
for the last couple of years, 245%, but very slow inflation, almost all
of that increase will benefit people in their pocket and not be beaten
away by inflation. -- .5%. -- 2.5%. Where will felt most keenly? Receive
benefit for the retail industry, people are benefiting from lower
petrol prices and they are spending that money. -- we will see benefit.
Things are not so good in the oil and gas sector. Not so many pay
rises there this New Year and of course the public sector is seeing a
significant pay freeze. Also we talk about the fact that oil prices are
falling and we are benefiting, but in terms of energy prices, white
households spending, that does not seem to be going down as quickly.
Household energy prices don't seem to be going down. The forecast is at
0.2%. The 2.5% salary increase, that is good news for people in the UK.
Thank you for joining us, then was joining us to talk about the fact
that real wages in the UK could be becoming higher in 2016, that is not
for all across industries of course. You are with business alive, the top
story is the falling trade figures from China. Also to bring you some
breaking news we are having through to the BBC. It is all about the
Oscar Pistorius keirin, it is ongoing in South Africa, Victoria.
-- hearing, it is ongoing in Pretoria, South Africa. He is to be
released on bail. The hearing has been taking place in South Africa
today and the news as Sally said, the court has granted him bail after
the conviction for murder. More details at the top of the hour with
the latest headlines just at nine o'clock. We will bring you that news
as soon as we have it. With Christmas around the corner this is
the busiest time of year for book-sellers, whether the
traditional printed page or e-books, they are flying off the
shelves. Amazon sells more e-books than any other retailer, but last
year the company faced criticism from some of the world leading
authors about its negotiations with publishers. Kobo was taken over by a
Japanese retailer, one of the largest in the world and the hope
was that it would help it to compete with Amazon. Michael Tamblyn is the
president. During his time at the company he has overseen berries
acquisitions and helped to launch the world's first waterproof e-book.
Our colleague caught up to talk to him about the rise of e-books and
what encourages readers to make the switch.
A lot of people do both, they may be reading their fiction, their science
fiction, their science-fiction, that fantasy on a digital device, but
then they are buying cookbooks and children's books and illustrated
books in print. A lot of people find themselves as a hybrid reader who
does both. Do people like the e-books or the e-readers? We look at
the devices as a way to bring people into that and to serve that person
who has books at the centre of their lives. You tend to gravitate towards
a new reader if you read one or two books a week and you have a device
that is optimised for that experience. You may use applications
if you or an occasional reader. How do your products differ from
Amazon's? The biggest difference is a philosophical one, reading is what
we do and it is all we do. We do not look at acquiring a reading customer
as a way to solve a bunch other things. We come out of book-selling
most of us professionally and then we look at this not so much as a
technology problem, more as a way to sell devices, but as a way to make
reading better. -- not as wages more devices. We have always believed
that there are two ways, the transition from print to digital
could go, it could either be a revolution that was happening to
publishers or it could be a revolution that happens with them.
We always believed the latter. With collaborating together, figuring out
what it is that readers want and by trying to bring the best knowledge
we have about digital reading back into publishing, that makes it
better for everyone. We would much rather be doing that in a more
friendly and less contentious way than some of our competitors do. It
seems to have worked well. That is the Chief Executive of kobo. Are you
an e-reader man or real book man? Definitely an e-reader. Then if you
go away you don't have to carry so many books. I still like a book, I
like turning the page. A traditionalist. Sorry! Coming up:
Would you pick an English bottle of bubbles over a bottle of champagne?
There is demand in places as far afield as China and Japan! Frazer
Thompson, no relation, the boss of Chapel down wines will join us live.
Let's have a look at some of the stories out there. We mentioned this
incredible deal that the Bron James has clinched with an IQ. -- LeBron
James has clinched with Nike. If these reports are accurate, a $300
million deal, it is a lifetime deal. It is believed to be the first kind
of this contract signed by Nike. In some ways I am not surprised, it is
a lot of money and unprecedented. I would be interested in the terms and
conditions. We know Nike sponsored a lot of other young sports stars who
have had a fall from grace. Tiger Woods, Oscar Pistorius, Lance
Armstrong. What does it mean if you sign a lifetime deal, are they
locked in? What is interesting is it sounds like a lot of money, $300
million is a lot of money, but you look at what they generate, the
brand association, the product range that it will no doubt launch for
them, it will bring in the money and it will be a profitable deal for
Nike, they will get something out of this. Absolutely, global sponsorship
deals worth billions and Nike is at the forefront of that. Let's talk
about a similar theme, Star Wars and the money it will make for Disney.
Star Wars carries its own marketing weight for Disney. What Disney is
arguing is that Star Wars has such a loyal fan base is they do not need
any linked merchandise or any commercial objects. At the moment
there is a Star Wars frenzy for all the bits and bobs to do with the
moving and all the merchandise is on sale for kids. You are speaking from
personal experience gesture marked my kids are pretty obsessed have not
even seen the film! This is a new fan base as opposed to an old fan
base. Yes, for Disney this has been a huge part of their business since
the 1920s, you think of Mickey Mouse, appearing on school
stationery, Star Wars has such a loyal fan base. Really good to see
you, thank you for talking us through that. We are wrapping up
business live slightly earlier, we are taking you to Johannesburg to
bring you the latest on Oscar Pistorius hearing. Oscar Pistorius
has been granted bail of 10,000 rand which is the equivalent of $700. He
will return to court on the 18th of April in 2016 and that is when his
lawyer will have to tell the court how far his appeal to the
Constitutional Court has gone, because he wants to appeal his
murder conviction dating that his constitutional rights have been
infringed upon. We have also heard from the judge that Oscar Pistorius
will be allowed to leave the house between seven and 12 in the day.
More news on that at the top of the hour. Oscar Pistorius granted bail.
That is it from us on business live .