08/12/2015 BBC Business Live


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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 .


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