14/01/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


As oil falls below $30 a barrel, global stock markets slump


Live from London, that's our top story on Thursday


The big fall in the US has dragged Asian markets lower.


But is the sell off a correction or the beginning


Also in the programme, a series of explosions and gunfire


have rocked the Indonesian capital, Jakarta.


At least seven people have been killed.


We'll keep you up to date with the latest.


And here's how the European trading day has begun.


Nervousness and volatility the order of the day for investors.


Website Etsy puts sellers of handcrafted goods in touch


with buyers around the world in a business model that made it


we want to know what is the best thing you have ever bought online,


something original was something that changed your life that you mark


For anyone hoping for a turnaround on the markets this weeks -


The Dow Jones lost over 2% in trading yesterday


The S is now down 10.4 per cent since its recent high in November.


A fall of more than 10% is known as a "correction".


It can be a big blow to confidence in the markets,


and often a signal of bigger falls to come.


And as we mentioned, oil prices dipped below $30 a barrel


too, with market watchers now eyeing the $28 mark.


Nada Tawfik is in New York, and explains how significant


if we look particularly at oil that has been down roughly 18% this year


will stop it had a brief rally on Thursday before prices fell again.


We have heard that this could be an issue throughout 2016. Really


weighing on the market. On the erratic view we heard was from


investment strategist in London, Albert Edwards, who has warned the


world could be heading for a financial crisis as severe as that


of 2008. He is just one and no that at one analyst but it does show


continued uncertainty. And amid all that uncertainty comes


the breaking news we've been A series of bomb blasts


in the Indonesian capital, Jakarta. There is continuing gunfire


and reports of further explosions. Police say at least seven


people have been killed, It's unclear who was


behind the attack. Sharanjit Leyl is in our


Asia hub in Singapore. As we have said, on top of the


nervousness in markets this attack, details still emerging but that will


serve to add to the nervousness and uncertainty? And it is indeed, most


of the markets here have started to close and they have almost all


closed lower. Explosions and gunfire in Jakarta actually hit things like


the Indonesian market which touched on. The Indonesian central bank


meeting this week have cut their benchmark interest rate for the


first time in 11 months, about 7.25%, that was a bit of a surprise,


certainly earlier than expected. We also sought the Jakarta deposit


index just about to close for the day. It has actually pared some of


those losses now and is trading down 1.3%. Bear in mind that in the


series of many terror attacks Indonesia has suffered the Jakarta


stock exchange was a target in 2000 when some 15 people died. Over the


years we saw the attacks in our league in 2002, the most recent was


in 2009. All of that -- in Bali. That all have an impact on tourism


and investment. We have seen other markets falling as well, in Japan


the Nick -- the Nikkei closed two alone, and in Australia down 1.5%.


The bright spot has been in China with the Shanghai Composite actually


closing up. And a reminder, there's continuing


coverage of events in Jakarta We'll have it right here on BBC


News, but also on our website. And those events adding


to already nervous markets. US crude prices dipped below


$30 a barrel yesterday, Brent prices soon followed


hitting their lowest levels The big question is how


far they can fall. A move towards the 2004 lows of $28


a barrel is now in sight. For the first time this year


the FTSE 100 yesterday managed to see two positive days


in a row, buoyed by a rebound in oil prices, as well as an improvement


in the latest Chinese trade But that is not lasted. Down already


this morning. That fall in oil prices


dragged on European markets Here's how they've


opened this morning. We'll get an update on interest


rates at middday in London today, with the BoE decision and statement


but no change to rates is expected Sue Noffke, UK Equities Fund Manager


at Schroders is here. Everyday I feel like am having this


conversation and we thought there was a bounce back yesterday but now


we are worse off than Monday. That is interesting, yesterday we saw


markets starting to rally and the US opened up but really nervousness too


cold. What caused the change of mood on Wall Street? The Chinese news


yesterday was really positive. I think it comes down to oil and that


is the fear about the strength and sustainability. We are having


growth, it is more volatile and patchy and not high enough to get


people comfort that the world is in a sustainable place. You talk about


sustainability and with all of these anecdotal bits of data and


statistics, everybody trying to piece them together to get an idea


of the economy. That is notoriously difficult but I suppose it is about


whether it adds up to a bleak picture and there is not much to get


excited about. Sadly touched on the Chinese data yesterday that was


better but it was not really enough to spark any sort of excitement.


That right, in the US we have seen sufficient growth on the Federal


the emergency levels from 2009. That the emergency levels from 2009. That


is good, but more recent data has suggested a little bit of a


slowdown. The question is, it is this a rolling over or just a pause?


If you are taking the heat out of the strongest areas of the global


economy it does not need much else to take its place. In the meantime,


some companies and industries are doing really well, like US


car-makers. General Motors upgrading car-makers. General Motors upgrading


its outlook for this year saying they are having a bumpy time, US car


sales with a record last year. People buying brand-new gas


guzzlers. That's right, finance is still cheap and running costs are


cheaper. Housing as well, that tends to be correlated with the


availability and Jenas, we have seen that in the US and the UK. Thank you


very much. We will keep you up-to-date on those markets as the


A reminder of the news from day progresses.


A reminder of the news from Indonesia, is series of bomb blasts


have rocked the capital, followed by gun battles on the streets. Police


say five suspected attackers are among at least seven people who have


been killed. They say they are now in control of the situation. The


blasts were centred around a major shopping and district near the


international business centre, and UN offices. It is not yet


which group is behind the assault and the president has urged people


not to speculate on who might be in bold. TRANSLATION: We give our


condolences on the occurrence of these events. We condemn actions


that disrupt public security and disturb the peace of the people and


so terror. -- sew terror. I have instructed the police chief and the


coordinating Minister for political, legal and security affairs to pursue


an arrest for perpetrators and their networks. The people do not need to


be afraid. And should not be defeated by these terrorist acts.


And I hope that people remain calm because it is all controllable. So


you can keep up to date with what is happening, take a look at the page


on the Germany will release growth figures


for last year within the hour. Europe's largest economy is expected


to grow 1.6% over 2015, despite the sharp slowdown in one


of its major export markets, Two thirds of the growth is expected


to have come from domestic consumer UK luxury brand Burberry has posted


a 1% rise in third-quarter for the luxury sector


but it says the outlook Shares have slumped 43%


since their peak last February amid the slowdown in China


where Burberry makes more than a third of its revenues,


piling the pressure on chief Auto giant General Motors


is bucking the trend, its shares have risen after the firm


said it would be more profitable and return more money


to shareholders. Shares in the biggest US carmaker


closed 0.6% up after it The World Health Organisation


is about to announce that that


started at the end of 2013. The region, though,


will likely feel the economic Liberia, Sierra Leone and Guinea,


lost $1.5 billion last year alone, that's nearly 5%


of their combined GDP. The UN Development Group,


says that West Africa may lose That's mostly because of


between 2014 and 2017. as the stigma of ebola


persists even if the virus And local people are


feeling it keenly. In neighbouring Cote d'Ivoire,


the UN says the poverty rate has risen by at least 0.5 percentage


points because of Ebola. Manji Cheto, Africa analyst


at Teneo Intelligence, lovely to see you again, one


statistic we did not mention is the human cost. Over, I don't know the


top of my head, how many thousands died. Over 28,000 affected, about


11,300 deaths. Quite significant if you just think about it being


technically a peace Time crisis. We talk about the money that still


terrible times for those countries affected by this and the impact it


has had at a personal level. But just talking about the situation


now, of course, brilliant that the world help the organisation says it


is over but we do not want history to repeat itself and there is work


to do. One thing we will see this year is we will see a rebound in GDP


growth in a lot of these countries. As you rightly pointed out there is


a social factor, livelihoods have been hit significantly. Border


closures, and household incomes have gone


down. We had a contraction of 22% in growth in Sierra Leone, we have


quite similar numbers coming out of Guinea and Liberia. I think we will


see a positive impact because businesses will reopen so you get


that sharp rise in GDP growth but beneath those numbers we are really


looking at very worrying statistics like inflation, we already know that


there are major food shortages and there


also in neighbouring countries as well.


Where do they start more water they need to do? We know already that


places like Sierra Leone did have a posted bowler recovery plan during


the peak of the outbreak, they be taking stock of those plans to


see if they were overestimated underestimating the risk, where


things start, it. To help their sector, particularly Liberia which


has been hit significantly, the one thing that people will be keen is


not to see a repeat of the outbreak. We will see a boost in the


infrastructure spending particularly. They will be receiving


some investment, all of these countries, from international donors


as it were, it is just a question of how that investment money is


managed? So far we know that about $3.4 billion has been earmarked in a


post-recovery plan. How it is earmarked will be largely determined


by the donors, thank you for coming in. It is good to hear what is going


on. Still to come, shopping in the world for handmade goods.


The website Etsy has revolutionised how artists


and designers sell their wares to the world.


And made itself billions of dollars in the process.


You're with Business Live from BBC News.


Tesco has hailed what it calls a "strong Christmas" after its UK


sales rose 1.3% on a like-for-like basis in the six weeks ending 9


So cruelly does depend on what you look at, is it just Christmas they


are focusing on, or are we going to take the figures as a whole? It is a


very mixed picture, they are still comfortably the biggest retailer.


Not a bad Christmas, sales up 1.5%, better than pretty much all of the


rivals and we knew that with a have got gains in market share. If you


look at the court as a whole, down 1.5%, they have put that down to the


fact that they did not do lots of cheap promotions which they did last


year. They have put a stop to that and that hurt them over the quarter


as a whole. Well what do the market thing? The story for Tesco has been


one of gradual decline, this is the story over the last six months. In


the last couple of days, the big four have surprised us, the


investors really like it. Is this the Christmas where the big four


fought back against the discounters? Maybe not, because little sales were


up 18%, it certainly looks like they have managed to stop the rot so as


you can see, on a day when most other stocks are down, this is a


chink of light in otherwise a pretty grey day in the market. Just a brief


word on the wholesale gas and then a trustee prices. Talking about oil


falling sharply, a big question as to whether that is passed onto


consumers? There is not a big correlation, but wholesale prices


have gone down. reiterated that common complaint,


that when wholesale prices go up, they go up like a rocket and come


down like a feather and I expect a lot of political action on that.


Thank you very much. Is that an old analogy? It is new to me. I may have


been here for too long. Tesco, you can look on our website, all of


their figures and past performances. Down like a feather and up like a


rocket. our top story, live, turmoil


live, on the markets deepens -


US stocks plunge as crude dips below Now, how to turn a hobby


into a bit of extra money? It's an online market place for hand


made arts and crafts that


allows ordinary people Founded in Brooklyn in 2005,


the company now has offices across Europe and in


Melbourne - Australia. Etsy's annual turnover last


year was around 1 point It charges a small


listing fee and a 3.5 There are a million and a half


active sellers on the site - But its not been plain sailing


for the company following its market listing in New York


in April last year. The share price has fallen


over 70 percent since. Nicole Vanderbilt,


VP of Etsy, is here. good to have you with us in the


studio. I must admit, it is right up my alley, I like doing crafty stuff


but you can never sell anything that I make. Nobody would buy it. Just


where did this idea come from? It was founded in Brooklyn in 2005,


primary because there was a community of people online doing


crafting and they wanted a place to sell their goods that was a great


environment, they recognise the value of craftsmanship. When we talk


about the niche market, it is one that connects sellers with buyers


and it allows you to have a market much greater than perhaps your local


community where you might be able to sell things traditionally and that


opens things up to a global marketplace but at the same time it


is up to global competition, I know that Amazon is getting in on the


act. How do you take on the power of Amazon? So all is take a look at the


marketplace, and we listen to our sellers. We know that these people


sell on multiple platforms, and we have been in the business for ten


years of trying to meet the need of these incredible entrepreneurs and


so we pride ourselves on keeping that laser focus, which is a new and


different type of business to what you typically see. You came on board


to increase its international presence, to oversee that, that is


quite a big job to take on. When I was booking and researching into how


the company is doing, some of the things that were coming out were


reports about concerns, questionable authenticity about some of these


goods? One report said? Do they actually exist? Magic spells was one


that was quoted. Do they exist? Is this actually the real Deal or is it


something that is being peddled in a way that is not really authentic?


Sure I think these are challenges that any marketplace faces,


connecting buyers to sellers, our role is to try and make it safe and


comfortable for both to interact. So we do try and mediate. How do you


check, you say that you try and manage it all, but with sellers from


all over the world, how do you make sure that they are authentic? There


is a combination of different things that you do, there are lots of


systems, smart algorithms that notice things that


shop potentially suspicious and we will take a further look at it, but


in addition, our community is an incredible force, and they will flag


things that they find worrying and that is another great source of data


for us. Just a word about the share price, floating, it is currently $6


99, down about 56%, how closely do you watch that, are you troubled by


the fact that investors seem to be market and the dead know how they


will play this and I do know how it will


Complete. The I cannot really comment on the stock price, we focus


for the long haul on building a company that reimagines commerce in


a way that is more fulfilling and lasting and that is about really


listening to our sellers and what they need and that is what we spend


all of our terms of what is next, what is the


next step from your point of view, looking at the International


expansion of this company? Obviously we know what it is and what it does


but you need to keep innovating? From my point of view there is a big


world out there and one of my biggest challenges is to prioritise


where we spend our time. There are 1.5 million sellers representing


every country in the world and so we are constantly trying to find


to find better support through services or throughout product, as a


company has a whole we continue to innovate as many as we do, we have


been very focused on mobile, 60% of the traffic comes from mobile, and


we have been focused on what we call the Etsy economy, rather than just


connecting buyers and sellers, we have launched Etsy manufacturing, so


we help people source ways of building their goods, and also we


have Etsy wholesale, which allows people to get a presence in high


street stores. Thank you very much for coming in. If you want to get


involved in any of the conversations that we have with company bosses,


here is a quick reminder of how you can do that. The businesslike pages


where you can stay up to date with all of the latest details, insight


and analysis from the BBC team of editors around the world. And we


want to hear from you too, get involved with the BBC business live


web page, on twitter, and you can find us on Facebook, BBC business


news. Business live, TV and online, news. Business live, TV and online,


whenever you need to know. And today because of the events going on and


developing in Indonesia and in Jakarta, we have set up a special


live page online for you to take a look at. You can keep across every


single development. These is now under control of, there were seven


attack as they say, three have been killed and four had been captured.


It happened around a major shopping and business district close to the


embassies and the offices of the United Nations. Yet


-- let us look at what is happening on the Jakarta live page, and also


this is a look at the other analysis we have online, do stay with us as


we keep you right up to date. Full headlines at the top of the power,


we will see you soon. Can you scroll back, and I will see where I need




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