:00:07. > :00:11.This is Business Live from the BBC with Sally Bundock and Ben Thompson.
:00:12. > :00:14.A new year and fresh fears about the slowdown in China and it's
:00:15. > :00:20.sending jitters through global markets.
:00:21. > :00:34.Live from London, that's our top story on Monday 4th January.
:00:35. > :00:42.Shares in Shanghai are suspended after a 7% plunge.
:00:43. > :00:47.A slowdown in manufacturing is one of the key reasons why.
:00:48. > :00:52.And also a change to share trading rules.
:00:53. > :00:54.We'll be live in Beijing to make sense of the mayhem.
:00:55. > :00:57.Also in the programme: Takata shares rise as Japanese car companies look
:00:58. > :00:59.set to support the troubled airbag maker.
:01:00. > :01:03.Our team in Singapore has the latest.
:01:04. > :01:11.And it's the first trading day of 2016 Europe, it's a sea of red.
:01:12. > :01:18.Would you pay to watch oerts play video games? One man thinks it is.
:01:19. > :01:21.And would you pay to watch others play video games?
:01:22. > :01:24.One man thinks you will and it's proving to be a huge success.
:01:25. > :01:27.We'll meet the boss of video gaming TV channel Ginx and get
:01:28. > :01:32.the inside track on the fastest growing entertainment sector
:01:33. > :01:34.We want to know what are your financial New Year's resolutions?
:01:35. > :01:36.What are you planning to do differently with
:01:37. > :01:39.Save more, invest more, or spend more?
:01:40. > :01:45.Let us know, use the hashtag BBC BizLive.
:01:46. > :01:59.We are already talking about serious volatility on China's stock market.
:02:00. > :02:02.index, the Shanghai Composite was suspended today after the market
:02:03. > :02:06.It's been blamed on another slowdown in the manufacturing sector
:02:07. > :02:10.which contracted for a fifth straight month in December.
:02:11. > :02:13.The data suggests the Government may have to step in with more aggressive
:02:14. > :02:15.stimulus measures if it wants to avoid a more dramatic
:02:16. > :02:29.One of the biggest risks this year is a sharp depreciation
:02:30. > :02:35.Experts also fear the number of corporate debt defaults
:02:36. > :02:42.Economic policy could create turbulence ahead from the removal
:02:43. > :02:49.of capital controls to efforts to rein in debt.
:02:50. > :02:54.Even as China tempts to steer away from growth driven by its factories
:02:55. > :03:03.With me now is Qian Liu, director of access China
:03:04. > :03:13.Welcome. Some issues there and responses we have had from the
:03:14. > :03:17.Chinese Government, now it's this newly launched circuit breaker plan,
:03:18. > :03:21.the plan that's stopped trade when they fell by 7% there. Just part of
:03:22. > :03:27.a raft of measures the Government have taken to ban things like short
:03:28. > :03:30.selling. Some people saying it's worked on this occasion and stops
:03:31. > :03:35.the market falling any more but it is symptomatic of a Government
:03:36. > :03:41.trying to influence the way the stock market moves. Exactly. Now
:03:42. > :03:46.this new idea of suspending the trading is really something that
:03:47. > :03:51.started to be effective, actually from today, now that was introduced
:03:52. > :03:57.after the stock market fallout in the summer of 2015. What
:03:58. > :04:00.us is above everything else stability is the key thing that
:04:01. > :04:04.holds China together. Now one key reason that led to the stock market
:04:05. > :04:08.fallout today is from the purchase managers index. Both the Government
:04:09. > :04:13.official number from last Friday and also the private one is both of them
:04:14. > :04:19.are telling us numbers are pointing to a contraction in the Chinese
:04:20. > :04:24.economy. What we are seeing today, part of that is
:04:25. > :04:27.lack of confidence over Chinese economy overall. Depending on who
:04:28. > :04:31.you believe and what you read, some say this is actually a good sign,
:04:32. > :04:33.maybe China is over the worst, we have seen all the headlines of the
:04:34. > :04:41.last six months where we saw a big fall in the value of the stock
:04:42. > :04:47.market, we saw that in the depreciation, maybe 2016 is the year
:04:48. > :04:51.things start to stabilise. Is that the optimistic view? Well, depends
:04:52. > :04:55.on which particular sector you refer to when you say the worst is over.
:04:56. > :05:01.When we look at China as a whole I say at least the best part, the
:05:02. > :05:06.fastest growth is over, the good days of double digits and magic 8%
:05:07. > :05:13.is over. The Chinese President is targeting at no less than 6. 5% in
:05:14. > :05:20.the next five years and actually 2016 is the first year of the
:05:21. > :05:24.five-year plan. One thing we can be sure is that China is not going to
:05:25. > :05:29.have any next one or two years, there are many doubts over how much
:05:30. > :05:36.China can sustain current growth. What I can safely say is definitely
:05:37. > :05:40.not the next couple of years but there are more concerns over the
:05:41. > :05:46.medium term, that is the 3-five years down the road. There are many
:05:47. > :05:50.problems that can go wrong. For 2016 it's really managing the structural
:05:51. > :05:53.slowdown and if anything property market, export and and service
:05:54. > :06:00.sector are something that's worth paying attention and these are the
:06:01. > :06:04.three sectors that might bring us upwards pleasant surprises. Thank
:06:05. > :06:11.you for talking us through that. Remember full coverage of events in
:06:12. > :06:16.China and that suspension of shares is across the BBC.
:06:17. > :06:18.Despite China's economic slowdown, investment in the country's railways
:06:19. > :06:21.grew last year with a total of 126 billion dollars being spent
:06:22. > :06:28.A new high speed railway service in the southern Hainan province has
:06:29. > :06:30.become one of the latest to start operations.
:06:31. > :06:32.China now has 19,000km of high-speed track.
:06:33. > :06:36.More than a million private cars are being banned from Delhi's roads,
:06:37. > :06:39.as authorities begin testing drastic new measures to cut smog
:06:40. > :06:40.in the world's most polluted capital.
:06:41. > :06:42.For two weeks this month, private cars will be allowed
:06:43. > :06:46.on the roads only on alternate days depending on whether their license
:06:47. > :06:53.plates end in an even or an odd number.
:06:54. > :06:56.Facebook founder Mark Zuckerberg has said he plans to build an artificial
:06:57. > :06:58.intelligence machine to help him around the house and with his work.
:06:59. > :07:01.In a Facebook post, he said his personal challenge this
:07:02. > :07:05.year would be to build what he called "simple AI" and says
:07:06. > :07:18.he plans to share his progress over the course of the year.
:07:19. > :07:33.I would like one of those as well, frankly, Mark!
:07:34. > :07:39.Gold rising by 1% today. Christmas sales down, I am guessing! Maybe.
:07:40. > :07:43.Could be. But of course when stock markets around the world are
:07:44. > :07:49.volatile, things like gold that's perceived as a safe haven tends to
:07:50. > :07:53.creep up. Up another 1% this morning. Oil price spiking, as well.
:07:54. > :07:59.We talked about China, also concern about what's happening with
:08:00. > :08:02.Arabia and Iran, tensions in the Middle East. Possibly disrupting oil
:08:03. > :08:07.supplies, there is a knee-jerk reactions today with the oil price
:08:08. > :08:12.rising, up 3%. Full details there on the live page.
:08:13. > :08:16.There is much more there too as well as oil, but also more on that news
:08:17. > :08:20.that Chinese shares were suspended as we discussed as a result of that
:08:21. > :08:21.slowdown in manufacturing but all sorts of things affecting that
:08:22. > :08:37.trade. Mariko Oi is in our Asia business
:08:38. > :08:51.hub in Singapore with the details. Shares are rising as much as 17% at
:08:52. > :08:57.the moment, up by about 14%, the biggest rise in more than a year. I
:08:58. > :09:03.should emphasise shares fell some 56% last year. It's mainly because
:09:04. > :09:09.of a newspaper report by one newspaper that Japanese, the
:09:10. > :09:11.Japanese car-makers might be putting together some financial aid for
:09:12. > :09:20.Takata, the last time they did something similar was in 2011 after
:09:21. > :09:23.that major stum and earthquawe -- time. The circumstances are
:09:24. > :09:30.different, the airbags have been linked to ten deaths and Honda has
:09:31. > :09:33.said that it's not going to investigate in Takata. It's still
:09:34. > :09:38.enough to push up share prices. Thank you. Let's look at markets in
:09:39. > :09:45.general. We talked about the fact it's not been a good start to a
:09:46. > :09:49.brand new trading year as it were. Japan closing down 3%. Hong Kong
:09:50. > :09:54.tracking, China also down. You can see the price of oil, now down
:09:55. > :09:58.actually but as we mentioned up earlier around about 2%, 3%. That's
:09:59. > :10:06.the euro. Look at how things are going in Europe today.
:10:07. > :10:10.As I mentioned, pretty torrid session. I can't get the graphics
:10:11. > :10:16.there. Earlier Germany was down, Paris down, London was also down.
:10:17. > :10:21.All down around about 2% or between 1% and 3%. At one point Germany was
:10:22. > :10:25.down over 3%. There you go. It's all there.
:10:26. > :10:30.As you can see, pretty bad start to a brand new trading year.
:10:31. > :10:31.China's a big issue but also concerns about what's happening in
:10:32. > :10:39.the Middle East. James Hughes, chief market
:10:40. > :10:48.analyst at GKFX, joins me. A new year, but the same old
:10:49. > :10:53.problems when you look at the numbers there. Germany down about
:10:54. > :10:57.3%, FTSE 100 in London down significantly. Is it just China or
:10:58. > :10:58.is it the dawning reality that everyone's back in the office, and
:10:59. > :11:04.there is nothing really excited about? Yeah, there is that
:11:05. > :11:08.kind of depression feeling in the markets when you come back on the
:11:09. > :11:11.first day but it is China, I think whenever China has any kind of blip
:11:12. > :11:16.and it doesn't have to be big these days, the rest of the markets do
:11:17. > :11:21.tend to get a little bit scared and freak out a little bit and that's
:11:22. > :11:23.exactly what we are seeing. First exactly what we are seeing. First
:11:24. > :11:29.day back, bad news out of China. Big falls on the down side. Interesting
:11:30. > :11:34.to see what happens later in the US to see if it snowballs. The US
:11:35. > :11:39.markets look low, as well, it could be across the board today that we do
:11:40. > :11:47.see a negative start to the year. New rules in China. If you put a
:11:48. > :11:53.trading, it goes down 7% and we stop trading, it goes down 7% and we stop
:11:54. > :11:56.trading. 5% they put in, this isn't just in China. We have this in the
:11:57. > :12:00.UK where if markets go down a little bit too much then shares get
:12:01. > :12:02.suspended. But you put this in and it does tend to happen. That's
:12:03. > :12:06.exactly what's happened. In China what we have in the next few weeks
:12:07. > :12:09.is a lot of other measures that were put in by the Chinese Government
:12:10. > :12:15.will be lifted so there is a worry will be lifted so there is a
:12:16. > :12:20.that as more and more policies get lifted that were put in to stop this
:12:21. > :12:25.slowdown that things could get uglier in China. We talked about a
:12:26. > :12:30.new normal of slower growth, still subtanks by European standards but
:12:31. > :12:35.nonetheless slower growth -- substantial. New lower oil price. Is
:12:36. > :12:39.it the case people say we start 2016 we have to reassess what we think is
:12:40. > :12:44.year on that? Yeah, and we kind of year on that? Yeah, and
:12:45. > :12:47.go back a little bit with rates to that point, as well. We all have
:12:48. > :12:51.this obsession with moving interest rates higher but that's to take us
:12:52. > :12:55.back to the sense of what we thought was normality but that was normality
:12:56. > :12:59.pre-2008 and that world doesn't exist any more. There is a little
:13:00. > :13:04.bit of that. The oil prices aren't going too much higher in the near
:13:05. > :13:06.future, China is going to stay negative, as the last - the boom
:13:07. > :13:12.years have gone out of China are looking at a different world
:13:13. > :13:15.this time. What we are doing is creating the rules for that
:13:16. > :13:19.currently at the moment. In the next 12 months or so it's going to be
:13:20. > :13:22.interesting just to see how the landscape is at the end of this
:13:23. > :13:26.year, what rates are doing and where markets are going. We will watch
:13:27. > :13:30.closely. James, thank you very much. We will talk through the papers
:13:31. > :13:35.later. This is something James would day.
:13:36. > :13:38.He would pay to watch other people playing video games. He confessed
:13:39. > :13:50.that to us earlier. Would you do that? E-gaming is the fastest
:13:51. > :13:55.growing entertainment sector in the world.
:13:56. > :13:58.Now a look at some of the stories from around the UK.
:13:59. > :14:02.The UK economy finished 2015 with a burst of speed,
:14:03. > :14:14.It looks as if the CBI said overall the economy looked strong in the
:14:15. > :14:18.fourth quarter, business services did well. Those people exposed to
:14:19. > :14:23.consooner spending did well, that's the good. The bad, manufacturing
:14:24. > :14:29.shrank a little bit and the ugly is the fact that export performance was
:14:30. > :14:32.at a six-year low. Not the rebalancing that both the Government
:14:33. > :14:34.and business groups wanted to see. We won't get the official numbers
:14:35. > :14:40.until the end of looks like overall it's a good
:14:41. > :14:44.picture but not a balanced one. Simon, what about the fact that
:14:45. > :14:48.apparently this survey points to the UK companies backing EU membership
:14:49. > :14:52.has fallen a bit, is that significant or not? I think so.
:14:53. > :14:56.Deloitte, the big accountancy and consultancy firm do a survey of
:14:57. > :15:03.chief financial officers or finance directors and found back in June 74%
:15:04. > :15:06.supported Britain's membership of the EU, that's down to 62% so not a
:15:07. > :15:10.huge change but if that was an election poll which in a way it is,
:15:11. > :15:14.people would take notice. Only 6% say their companies would be bet
:15:15. > :15:18.iroff out of the European Union but that's up from 2%. A lot saying wait
:15:19. > :15:23.and see. The mood music out of Europe at the moment is pretty
:15:24. > :15:27.miserable. Assessments on growth conditions over there, the migrant
:15:28. > :15:32.shift but one that's going to make negative outlook. Not a massive
:15:33. > :15:32.shift but one that's going to make some people sit up and take notice.
:15:33. > :15:42.Thank you. The front page of today's Financial
:15:43. > :15:46.Times they had a survey of 100 economists they spoke to. Most of
:15:47. > :15:47.whom argue it is better for the UK economy to stay within the European
:15:48. > :15:52.Union. That debate is just going to Union. That debate is just going to
:15:53. > :15:53.go on and on. I have a feeling we go on and on. I have a feeling we
:15:54. > :15:57.will be talking about that a lot will be talking about that a lot
:15:58. > :16:02.this year! One story to bring you. Good news, we were talking about oil
:16:03. > :16:08.prices creeping back up. Diesel dropping to below ?1 a litre for the
:16:09. > :16:17.first time since 2009. Good news for Britain's 11 million diesel drivers.
:16:18. > :16:23.It says prices on the fore courts dropping all of this and the big
:16:24. > :16:31.supermarket chains are dropping prices. A drop in diesel.
:16:32. > :16:35.Our top story, shares in Shanghai are suspended as traders eye a sharp
:16:36. > :16:45.Stocks fell by 7% before trade was halted.
:16:46. > :16:52.Part of new rule to stop big losses on one of the most influential stock
:16:53. > :16:55.markets. The repercussions is being felt around the world.
:16:56. > :16:57.E-gaming is one of the world's fastest growing entertainment
:16:58. > :17:03.Professional players earn multi-million dollar prizes.
:17:04. > :17:03.A staggering 344 million people watched the championships
:17:04. > :17:05.for the video game League of Legends last year and there are even TV
:17:06. > :17:12.Ginx is one of them, with subscribers in Europe,
:17:13. > :17:19.It's Chief Executive Michiel Bakker knows all about running
:17:20. > :17:22.He was one of the founders of MTV Europe.
:17:23. > :17:25.Michiel spent 20 years building what is now
:17:26. > :17:30.Viacom International Media Networks, and has been Chairman
:17:31. > :17:37.After leaving MTV, he took time off to travel and learn to sail yachts.
:17:38. > :17:40.At the helm of Ginx, he has overseen its latest
:17:41. > :17:43.round of financing, via crowd funding, to meet their target
:17:44. > :17:59.Welcome to Business Live. Let's of Ginx TV, is here.
:18:00. > :18:02.Welcome to Business Live. Let's start with this concept of people
:18:03. > :18:05.paying or subscribing to watch other people play video games. It is
:18:06. > :18:08.fascinating because if you are a gamer, you will know all too well
:18:09. > :18:12.about this and we were discussing this earlier, people do this, they
:18:13. > :18:15.look for tactics and strategy and how you might do better at these
:18:16. > :18:19.will not have a clue that something will not have a clue that something
:18:20. > :18:20.like your channel exists. It really like your channel exists. It really
:18:21. > :18:31.is a big growth area, isn't it? It is. You focussed a lot on e-sports
:18:32. > :18:34.in your package there. Ginx is about all video gaming and console gaming
:18:35. > :18:39.and what happened to video gaming, it moved from the preserve of the
:18:40. > :18:45.15-year-old boy in their bedroom playing games to a more massively
:18:46. > :18:52.mainstream activity. So you see all over the world stadium packed with
:18:53. > :18:55.being played between teams and it is being played between teams and it is
:18:56. > :18:58.the excitement, it is not dissimilar than watching Chelsea v Manchester
:18:59. > :19:04.United in more traditional sports if you will and that's and you say it
:19:05. > :19:10.doesn't appeal to non gamers, but in fact what I see happening is that
:19:11. > :19:14.just the dynamic environment and the tension and the commentary is
:19:15. > :19:17.drawing people that are not considering themselves to be core
:19:18. > :19:21.gamers into this excitement. A lot of it is the content, isn't
:19:22. > :19:26.it, as with any television channel, you have got to have the right thing
:19:27. > :19:31.on the channel for people to subscribe, pay to watch. How do you
:19:32. > :19:35.find content for Ginx? Where do you go? Well, we have a luxury, of
:19:36. > :19:40.course, of a flow of content coming out of the gaming publishers every
:19:41. > :19:43.year. There are thousands of games being developed. How do you find the
:19:44. > :19:51.right content? The people that content, that it is a must watch for
:19:52. > :19:53.the exclusive environment of trying the exclusive environment of trying
:19:54. > :19:58.to get a game that you can only see on Ginx or that's one way to go.
:19:59. > :20:02.Exclusivity is not a natural way to attract people. The other is to
:20:03. > :20:06.highlight games in a way that is not done usually. The video gaming world
:20:07. > :20:12.has grown up in a silo on the left and TV is in a silo on the right and
:20:13. > :20:18.Ginx it is in between. We treat video games very much
:20:19. > :20:20.entertainment and less, you know, we entertainment and less, you know, we
:20:21. > :20:28.are less about the 50 million lines of code. You can delve deeply into
:20:29. > :20:33.video gaming, but we tend to approach it as more of
:20:34. > :20:40.entertainment, broad spectrum way to make it appealing to as many people
:20:41. > :20:44.as possible. It is interesting now that mainstream sponsors, the likes
:20:45. > :20:49.of people who would have sponsored the big games are getting involved
:20:50. > :20:53.in e-gaming and television channels such as yours, they are able to
:20:54. > :20:57.access a niche gamer, a person they want to target that they can't get
:20:58. > :21:01.anywhere else? There is two types of brands that come in. You're right to
:21:02. > :21:06.point out that there are bigger brands now looking to come into this
:21:07. > :21:12.predominanty male audiences which congregation of 16
:21:13. > :21:14.predominanty male audiences which are the most elusive television
:21:15. > :21:18.audiences to attract, brands want to be there. So whenever something like
:21:19. > :21:22.this moves into the mainstream, you can see mainstream brands coming to
:21:23. > :21:27.that and that benefits everybody because it creates that sort of echo
:21:28. > :21:31.system that more investment can go into e-sports and therefore, it can
:21:32. > :21:35.become even bigger and better and broader and get more adapted around
:21:36. > :21:39.the world. So yes, it is a good thing overall. Really nice to see
:21:40. > :21:44.you. Thank you for coming in. We could talk all day about it. We have
:21:45. > :21:50.many more questions, but time has got the better of us. Thank you for
:21:51. > :21:54.coming in. Virtual reality is being billed as
:21:55. > :22:02.the next big thing in tech and it may become true. Millions of people
:22:03. > :22:08.will be able to use it in their own homes as Sony release for sale their
:22:09. > :22:12.virtual reality head-set, but beyond gaming all sorts of uses are being
:22:13. > :22:21.explored. Here is our technology expert. In a freezing cellar with
:22:22. > :22:27.fake snow under foot, I'm inching my way up the world's highest peak. I'm
:22:28. > :22:31.getting a view of Everest, a virtual reality game out later this year.
:22:32. > :22:35.The manufacturers believe gamers are ready to immerse themselves in
:22:36. > :22:36.virtual worlds. It is the natural progression. We have got bigger
:22:37. > :22:43.screens. We have had 3 D screens and screens. We have had 3 D screens
:22:44. > :22:45.we have had curved screens. The next we have had curved screens. The next
:22:46. > :22:47.thing is taking us into a virtual environment and locking out every
:22:48. > :22:53.bit of stimulus so we are focussed on what they are trying to tell
:22:54. > :22:58.Getting into a us. Lift, especially one as old as this, could be a scary
:22:59. > :23:04.experience for some people. So could virtual reality help them get over
:23:05. > :23:06.their phobia? I have come to see how psychologists are working with the
:23:07. > :23:10.technology. I am going to focus on technology. I am going to focus on
:23:11. > :23:12.your breathing and muscle tension. They have developed a programme that
:23:13. > :23:18.allows patients to try out the experience of getting into a lift.
:23:19. > :23:21.You sweat, your breathing changes. You get a physiological reaction
:23:22. > :23:27.which you don't get in the 2 D environment. Let's see if it worked.
:23:28. > :23:29.How does that feel now? I'm honestly quite proud that I'm doing this!
:23:30. > :23:33.LAUGHTER You should be proud. Do you think
:23:34. > :23:39.all? Honestly, I would have been all? Honestly, I would have been
:23:40. > :23:40.taking the stairs about a month ago! That's an amazing story. It really
:23:41. > :23:48.is. James Hughes, chief market analyst
:23:49. > :23:52.at GKFX, is back with us to look at what's making business
:23:53. > :23:57.headlines in the papers. Winners and losers and the FT has a
:23:58. > :23:59.piece talking about the winners, well there were nine of them and
:24:00. > :24:06.tech stocks. Yeah and these are the tech stocks. Yeah and these are the
:24:07. > :24:11.real staples of these markets. The markets 2015 was a terrible year for
:24:12. > :24:18.equity markets. Particularly in America as well? Most stocks down,
:24:19. > :24:23.but this is the first time I heard this, the fangs, Facebook, Amazon
:24:24. > :24:25.and net flick and Google. These stocks did so well and Netflix was
:24:26. > :24:30.an interesting one. One of the an interesting one. One of the
:24:31. > :24:30.year, their Chief Executive said announcements of their figures
:24:31. > :24:34.year, their Chief Executive said about the market going up so
:24:35. > :24:37.strongly, he said he had no idea why the share price keeps going up
:24:38. > :24:42.because we're not actually in that good shape where his words! He is an
:24:43. > :24:55.honest man, isn't he? They went up further on the back of that. Fangs,
:24:56. > :24:59.Facebook, Amazon, Netflix and goodbyele are the FANGS!
:25:00. > :25:04.Take back Tuesday was the Tuesday after Christmas. Did you have to
:25:05. > :25:13.take stuff back, James? I didn't take anything back because anybody
:25:14. > :25:18.that bought me gifts bought perfect. This week and next week, we see the
:25:19. > :25:22.big retailers come out and give us information on how the Christmas
:25:23. > :25:27.period... It has been raining hard. The wrong weather. Boxing Day, foot
:25:28. > :25:34.centres was up 3.9%. That's because centres was up 3.9%. That's because
:25:35. > :25:38.people need to get out of the house! After the rain, they need to be
:25:39. > :25:42.under cover! That's true. Hopefully retailers for December, which of
:25:43. > :25:45.course, is pivotal, are going to be slightly better off this year
:25:46. > :25:50.because last year, it was the first time ever that online sales beat
:25:51. > :25:54.foot fall sales. It will be so interesting to see the retail
:25:55. > :25:59.figures. Thank you, James.