21/12/2015 BBC Business Live


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Hello, this is business life with Sally and Ben. Fighting for Tower


coalition talks loom in Spain as the election fails to produce an


outright winner. Live from London today on Monday 21st December, this


is the top story. But as the country is plunged into


uncertainty worries grow for its fragile economic recovery. We will


assess what is at stake. Also Toshiba shares sank by 10% as it


reports a loss of over $4 billion. And with just seven trading days of


2015 to go, the euphoria of the rate rise last week in America is wearing


off. Worries over the global economy returning and the Spain election


outcome is not helping restore any sort of confidence. And keeping the


wheels turning, Eric will be with us, she is the founder of port


point. The firm is trying to install lots more charging points for


parking the car and networks reportedly paid zero tax in the UK


despite revenues of ?200 million here. Would that make you change


your behaviour? Would you cancel your subscription? Use the isn't as


live hashtag. -- use the Business Live hashtag. Welcome to the


programme. Spain 's economic reforms thrown into doubt after an


indecisive election result last night. One that saw the governing


Conservative Party win the most seats but lose its majority. Now it


must form a coalition. That uncertainty could spell trouble for


the country's fragile economic recovery. The acting Prime Minister


Mariano Rahoy hoped it would help him win. What went wrong? This is


the ninth consecutive quarter of growth after Spain emerged from


recession two years ago. And employment has fallen from its


record high of 28% to 21%. Still high, the second highest in the


European Union after Greece. -- and employment has fallen. That has


worried opponents of the Conservative Party led by Mariano


Rajoy. Critics say many of the jobs created are part-time and badly


paid. Mariano Rajoy says he is optimistic that things will get


better. He scented his campaign on employment, promising 2 million more


jobs in the next five years. As these results show many voters were


not convinced by that promise. Rubin cigarette is the European economist


at the Bank of America Merril Lynch. Thank you for joining us. . Reaction


to the result, not unpredictable, we agreed, although it gives no idea of


what is ahead. I think it will take time to solve this. You need to


understand Spanish politics in three dimensions, left, right,


traditional. Where do you stand on Catalonia, and whether you are a new


party or an old one. Where you stand on reform. Given that each party has


red lines in each of those dimensions we thought any of them


crossing any red line, there's no outcome when you cannot rule out new


elections. We will be closely watching what each party says


regarding potential support. This political instability that will be


around for the foreseeable future in the short-term, depending on how


that has worked out, will depend on any policy changes for the future


and yet Spain needs strong leadership of that economy is to


grow significantly in the future. Exactly. I would distinguish it


coming in the short run, the economy is going well, they have made good


reforms and a hung parliament pretty much means you can't undo those


reforms. You have quantitative easing in place. In the medium run


Spain has challenges, they have solved some other they have a large


rate of unemployment, debt, a difficult position, and that needs


political consensus which won't happen in the next two years. That


leaves Spain in a very vulnerable position, two or three years down


the line. You have listed the problems, which is the most pressing


that, if there is any wiggle room in a coalition, where should the focus


speed when it comes to tackling at least one of those problems? It has


to be unemployment. 13% long-term unemployment, 53%... That is the


first... Is that why the other party did well? People are not happy about


the way things were done and we have had many corruption cases involving


traditional political parties. We could talk for hours about this,


thank you for coming in, time is of the essence, we will see you again.


Full coverage of the outcome of the Spanish election on the BBC website


as well as the business implications of everything we have heard from


Madrid. Brent Crude prices are falling again, down to levels last


seen in 2004, they have dropped below the lows in the financial


crisis, all down to worries of an oversupply of oil. Production around


the world is still at record highs, with new supplies looming from Iran


and the USA which will increase supplies further. Countries from the


World Trade Organisation have agreed to abolish subsidies and farming


exports from countries like Kenny, developing nations, critics say that


the subsidies have capped prices artificially low and distorted the


market, the WTO called it the most significant outcome on agriculture


since the organisation was formed in 1995. And a surprise, Star Wars, the


Force Awakens has made half $1 billion of profit in its opening


weekend and smashed the box office record in the USA, topping Jurassic


World. What Disney paid $4 billion for the rights to the series


four years ago. Have you seen it yet? I haven't. I'm going to night,


very excited. I'm going to bed early to night because I'm an air at 5am


tomorrow! Let's look at what is being talked about on Business Live


online, tracking reaction to the Spanish election, shares falling on


the main market in Spain by almost 3%. Do you remember Yanis


Varoufakis? He used to be the finance minister of Greece. He has


tweeted this. So as ever, Yanis Varoufakis is not


mincing his words. And a quick look at the spike in the cost of


borrowing. Any uncertainty about the economic situation always tends to


lead to a big spike in borrowing. Those are the stories on our pages.


A breaking story about Fifa. Sepp Blatter and Michel Platini will be


banned, says the ethics committee. They have claimed that a payment is


not convincing and was rejected by the chamber. This effectively means


that both men will be banned by Fifa and the ethics committee. More about


that as we get it. Clearly all of this relates to the bribery claims.


The other developing story has been about Toshiba, axing almost 7000


jobs, all of which are in the consumer-electronics division after


a massive accounting scandal. It has also announced record losses for the


fiscal year. We can go to our Asian business hub in Singapore. Pretty


bad news. A record loss and loads of jobs going before Christmas. That's


correct, it will be Toshiba's second straight year of losses. More bad


news is expected, shares plunged by 20 9% after the initial


announcement, a massive loss for the year, $4.5 billion and thousands of


jobs going. Those jobs are only about 3% of the overall workforce.


not huge chunk of employees. They not huge chunk of employees. They


also plan to sell their TV plant in Indonesia and shut a research


complex in Tokyo. This company makes everything from cookers to laptops,


businesses and nuclear energy, their division includes a electronics


hasn't done well. An accounting scandal broke several months ago


revealing they had inflated profits by $1.2 billion over a seven-year


period. The company is under great period. The company is under great


pressure to restructure and to bring their finances back in order. But


we've seen many top executives forced to resign and we will see a


very different company in the months ahead. Lunch Mac thank you. Toshiba


sharply. Toshiba down by 10%, all today. You can see


sharply. Toshiba down by 10%, all based on expectations of big losses.


The actual figure was confirmed after the close of training. A


slightly different picture although the euphoria of the rate rise in


America last week is now rising and again the reality, the concern of


In Europe it will be the story of the Spanish elections. The governing


Spanish Conservative Party won although it lost its majority so it


needs to form a coalition. The risk is that Mariano Rajoy will have to


make concessions on economic policy which could derail fragile growth.


More about that in a moment. First, what Wall Street has in store before


the Christmas holidays. As the year and approaches markets begin winding


down, just seven full trading days in a shortened Christmas eve session


left. Prices could hurt stocks and without a modest rally markets could


end the year down for the first time since 2011. Some fresh economic data


will come out of this week, the US Congress department will release GDP


figures for the third-quarter on Tuesday. It is expected to show the


economy grew at an annual pace of 1.9% helped by increased spending


before holidays. It's expected to show that existing home sales


increased in November the 3.4% decline in October and on


Tuesday earnings reports will be out for Nikkei and ConAgra foods.


-- ten three Mac. Richard, a lot for people to die just this Monday


morning. -- Nike. Brent Crude falling to an 11 year low and people


edging into the silly season, where people are ending the week on


Christmas Day. A strange week. Adamson and if it is the silly


season, it is the time of year when people think about the future and


what to do in terms of investment decisions for the next year. Within


that, people are thinking what is the world economy going to look


like? It won't look sparkling next year. Specific areas in which we do


see growth pick-up, in the USA growth could be a tiny bit stronger


next van this year. This year it's been OK, quite a decent year for


them. For Europe, more importantly, this might be another year in which


it gains more momentum. Two years ago it was in recession. It has


picked up since then. Next year could see growth of almost 2%.


Interesting if we look at the way that the year is ending, so


different to the way it started, some of the same issues, rate rises


and commodity prices, although nobody perhaps could have predicted


they would be quite in the position that they are with oil solo and


rates not rising anywhere apart from the US and that just a tentative


rise, there's still a lot of uncertainty and fragile as the word


we are using to describe most economies. There's a lot of


uncertainty, a lot of it created by a different tone to the world


economy, different balance of between developing and developed


economies. If you think back to pre-recession, every into the wooded


would have been about globalisation and the emerging economies in Asia,


and fractures, commodity prices booming, things like that. That was


driven by demand in the West which was growing rapidly. Demand in the


West included the seeds of its own destruction, it was founded on that.


We are growing much less quickly in the West now. That is creating a


very different environment for emerging manufacturers and quality


producers, a different balance of world growth. Richard, thank you.


Let's fill you on the news that's been breaking about the former


president of Fifa, Sepp Blatter and his Uefa counterpart, Michel


Platini, they have been handed out fines and bans as well. They're


going to be banned for eight years. going to be banned for eight years.


This NUS is just coming through there, is from the Fifa Ethics


Committee. The prosecutors were calling for a lifetime banment the


ban will be for eight years, but the fine, a hefty one, 50,000 Swiss


francs for Sepp Blatter and 80,000 francs for Michel Platini. This


relates to the investigation into ethics at world football's governing


body. Lots more information on lin and we will be updating you as we


get the information. Still to come: Powering ahead


as electric cars become an increasingly common sight


on our roads, we ask how technology is keeping the wheels moving


and the batteries charged. The boss of the UK's


leading charging network, You're with Business


Live from BBC News. Here in the UK, it's been a hectic


weekend of last minute But whilst the shops


might have been full, many have already slashed prices


to get customers through their doors and whilst it might boost


sales, it hurts profits. Emma Simpson has been finding out


whether retailers have lost their nerve and


cut prices too soon. Well, we have got a few days left


until Christmas and they will be big shopping days, but if you look over


December as a whole, we are satisfied with our sales results.


One retail analyst told me that he detected a whiff of panic on the


high street. What's your sense? No panic here in Peter Jones as you can


see. All calm and orderly. No, I understand


discounting come from, but it is discounting come from, but it is


simple, that's all to do with the weather. It has been an extremely


mild autumn and that led fashion retailers to reduce their price, but


there is no surprise there, that's ever been thus. I think it is a more


stable position than the commentators are calling and to be


honest we have got to wait to see the whole period through right until


the end of clearance. In other words, it ain't over until


it's over. It is all to play for. it's over. It is all to play for.


Yeah, that's true. A few days left before Christmas, but we have said


this is about three peaks, black Friday, Christmas and clearance and


John Lewis has not discounted any of its home products in the run up to


clearance. It is a big period for us and it is only when you have gone


through that you can genuinely tell the profitability of Christmas. This


Christmas people have more disposable income in their pockets.


But that's not necessarily translating into greater retail


are feeling a little better than are feeling a little better


last year. The stats are clear. They last year. The stats are clear. They


have definitely got a little more money than last year, but it is


proving hard for retailers to continue to take the same share of


that spending. One of the practical consequences for retailers on that,


because presumably the gap is widening between the winners and the


losers? I think we are going to see a huge range of performances and


remember as online takes an ever greater share, those retailers who


really worked out how the bricks and the clicks come to go, those who


distribution chain, fulfilling the distribution chain, fulfilling the


orders, they will be the winners this Christmas.


Sandy Street the managing Director of John Lewis.


The Times is saying Sir Ken Morrison owns 2.6 million shares in


Sainsbury's. Surprising! Our top story: Political


uncertainty in Spain. Rajoy fails to win a majority


despite promising economic growth. The Fifa Ethics Committee has banned


Sepp Blatter and Michel Platini for eight years from all soccer related


activities. Both have been issued fines. That's the story that's


emerging as we speak. The Fifa Ethics Committee banning Sepp


Blatter and Michel Platini for eight years from anything soccer related.


This is relating to the charges brought against them. Ethic judges


ruling that Blatter broke the Code of Ethics and breach of loyalty and


offering gifts. Michel Platini being found guilty on breaking rules on


conflict of interest and loyalty. As electric cars become


an increasingly common sight on our roads, the battle


between the car makers hots up. Nissan, Tesla and Toyota


are all vying for the top spot Last year more than 320,000 electric


cars were sold around the world, but all of those need somewhere


to recharge and that means many more electrical charging


points are required. One of the firms leading


the charge is Pod Point, who run the UK's leading electric


vehicle charging network. Since 2009 it has sold more


than 20,000 electric vehicle charge points and developed one of the UK's


largest public charging networks. Erik Fairbairn is the founder


and Chief Executive of the company and says one in ten of us could be


driving an electric car by 2020 Welcome to the programme. The first


car? I have, absolutely, yes. Where car? I have, absolutely, yes. Where


do you charge it? At home and when I drive into the office I charge at


the office and when I'm out doing my shopping or my leisure time I plug


in anywhere I can. Are you London? I'm far outside London, but my


office is in London. It does depend on where you live as to the


accessibility of chargers outside of your driveway? Electric vehicles are


following population density. I don't see them as that in long


run. I think in the long run they are applicable to all of us, but


they have to start somewhere and the cities is perhaps where they are


starting at the moment. With new technology there is the chicken and


the egg thing. Is it the take up of electric cars will be determined by


to charge them or the charging to charge them or


points will be determined when there points will be determined when there


is sufficient people already driving an electric car? You can't have one


that leads the other by too farment you have to be developing both


things at the same time and they have to be proportional. It would be


lovely to have a charging point everywhere you could go, but in


reality, we have to ramp that up along with the vehicles. As you say,


you get area which have great charging infrastructure and some


areas which are bare, but when we look back at this time, we will see


a rapid roll-out of the electric a rapid roll-out of the electric


vehicle. You need full coverage for this to be a viable proposition


because it is no good thinking I will invest all this money in an


electric car, but you want to go and see friends who live in the country


and you realise you could drive there, but you can't drive back


because you can't plug the car in. It really needs full coverage or not


at all? You're probably right, but the way that these things


the new technologies arrive is the new technologies arrive is


certain parts of population start to adopt them and the availability of


charging infrastructure is one of the things that makes your people


adopt them. Perhaps at the moment there is people who live in the


South East of England where there is more of these things, that's where


prevalent. If you live in rural prevalent.


places, it will take longer, but places, it will take longer, but


this is normal. These things don't arrive everywhere all at once. Your


company was the first in the UK. You have clients around the world.


Norway is a big client of yours. Why did you start this? Is this a


is that where you're coming from? My is that where you're coming from? My


mission is to make sure that travel mission is to make sure that


doesn't damage the Earth. So I doesn't damage the Earth. So I


think, you know, looking to the future we should be able to travel


whenever we want and whenever we need to, but the challenge is making


sure that doesn't have a climatic impact and it is about getting rid


of carbon. I looked at the industry and said, you know, I can't solve


this alone, but what I can do is do get my company to make


charge points and together as charge


entrepreneurs, we can actually make entrepreneurs, we can actually make


a really big step forward in terms of the carbonising -- decarbonising


transport and making sure it doesn't damage the Earth. Thank you very


much Erik. It is popular out there. Any


technology and any new changes with regards the environment and


business. We will be here with that. I want to bring you up-to-date with


new lines on the Fifa investigation story.


News the Fifa Ethics Committee banned Sepp Blatter and Michel


Platini for eight years from all soccer related activities. Michel


Platini had bid to succeed accept platter as president, but that's


clearly not going to happen. -- Sepp Blatter as president, but that's


clearly not going to happen. Platini broke rules on conflict of interest


and loyalty. All this is this with the Fifa Ethics Committee. More on


that at the top of the hour. Both that at the top of


men said they would appeal against men said they would appeal against


any sanction. This is a story that's likely to run and run. More at the


top of the hour. Richard Jeffrey from


Cazenove Capital Management Your thoughts, it is another company


that's been named and shamed? This is another international, big


international technology company which has been accuse. Accused of


sheltering income in a low tax area. Netflix are saying there are lots of


development costs and we're not making money internationally, there


is a hint that they are booking revenues in areas where they pay


less tax and they are not booking less tax and they are not


revenues in the places where they revenues in the places where


make them. This is an international make them. This is an international


problem. It is not a problem that the UK can solve on its own. It is a


problem the major countries have to get together and sort out and it is


to do with fairness. It is interesting this should follow on


last week and said it paid more in last week and said it


taxes in the UK as part of that taxes in the UK as part of that


announcement. New Year's Eve s that a big thing for you? Well, it will


be a big thing for us. I know what you're going to ask me. We're going


to be on Exmoor which will be a very nice New Year. Dubai is about


conspicuous consumption, if you're into conspicuous consumption you're


going to go to the place where it costs the most. And that's Dubai!


More on the Fifa story at the top of the hour. We will see you soon.


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