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This is Business Live from BBC News, with Ben Thompson and Sally Bundock.
China's economy grows at its slowest pace in a quarter of a century -
but its within the government's target.
Live from London, that's our top story on Tuesday the 19th
The world's second biggest economy grew by just under 7% last year -
but some observers say growth could be much weaker
Spies like us. Apparently Britain's Security service, the MI5, is the
best place to work for gay and lesbian workers. The markets in
Europe has begun its trading day. Much stronger than what we have seen
in previous sessions and we will explain why.
And assessing the health and wealth of private businesses.
How do you do due diligence on firms - like these -
that aren't listed on any stock market?
Well, one website says it can give you the low down
We'll be speaking to the founder later in the programme.
And as tourism to North Africa slumps in the wake of
we want to know - have you changed your travel
Are there places you would no longer visit?
China's released its official figures for 2015, showing
the world's second largest economy has had its slowest full-year growth
The economy grew 6.9% - in line with the government's target
Taking a look over the past five years, you can see the steep drop
in growth, from double-digit figures just a few years ago,
as the country's manufacturing sector shrank and is now
in the process of moving towards a consumer driven economy.
And to make matters worse - some are concerned the figure may
Fears over the slowdown have fuelled market volatility in China over
recent weeks, spilling over into global markets.
Miranda Carr, Senior Analyst, Haitong Securities joins us
Good morning. Sally ran through the numbers there, and as we touched on,
it is about refocusing and rebalance of the economy away from just
exports. At the same time, it also means headlines like today, the
slowest growth in 25 years, how worried should we be? We should not
be that worried, we have good rebalancing services, 50% of the
economy for the first time in history. People have called for
this, China should not invest in bridges to know where or fuel a
property bubble but when it stops doing that, and gets back to
consumption growth, you get panicked headlines. The trust issue when it
comes to these numbers is the big one. We are getting concerned about
numbers to an extent, that might not be true anyway. Some suggest the
figure could be much lower in reality? If you look at the details,
things like the old economy is slowing significantly, things like
electricity consumption, railway freight, even mining investment,
things and steel mills, that is going into contraction which is
quite painful for that bit of the economy. That is what we feel
affected by because it is where we have had the most exposure,
international companies, industrial companies, that is where the most
pain is and why we think my God, it is slowing much more than we think.
At the same time, the service sector shows good grades? The bit that they
are trying to encourage? Yes, -- growth. If you have seen more
closures, you would expect the consumption side to fall as well but
it was doing pretty well. Auto sales, daily household goods, they
are reasonably good. Some of this rebalancing is happening but it is
not an easy process, it is quite a painful adjustment and we think 2016
is going to be where a lot of that real crunch is going to happen. Yes,
close scrutiny of the economy. Thank you.
A lot of detail and further analysis on the website.
In other news today... Attacks by the militant group
IS have led to a fall in tourism in parts of North Africa,
where millions rely on the trade New figures from the United Nations
World Tourism Organisation indicate visits to North Africa fell by 8%
in 2015, bucking The consumer goods giant Unilever
has reported a sharp fall in full year profit for 2015 -
saying it was a challenging year. The firm, which makes a vast array
of products including Ben Jerry's ice-cream and Lipton tea says
pre-tax profit fell 8% It expects even tougher market
conditions in 2016. Tata Steel and trade unions have
called for more British government support for the industry,
after the company announced More than 1,000 posts are to go,
mainly in Port Talbot But at the same time,
BT has announced it will create 1,000 UK jobs as part
of a commitment to answer more of its customer calls
from within the UK. Currently only half of those calls
are answered in the UK, with the rest answered by call
centre teams based in Bangalore A look at the business live page for
you. Details related to events in China. News that the FTSE 100 in
London has opened significantly higher, relief after a difficult few
days. Breaking news now, news from the
live team suggesting there could be problems with Twitter this morning.
They ask this... Let us know if you are having
similar problems. The world's nudging bank, nudge
theory. I like this idea. We've discussed this on the programme, the
father of nudge theory, rather than rules and regulations telling you
what you should and shouldn't be doing, nudge theory is about
coercing you into doing it by telling
you things are better. So rather than cutting spending, you may be
aware of spending too much on a certain day.
It's Friday for a lot of people, the Friday feeling overtakes them and
they spend money online! Or in the streets. I'm pretty well-behaved!
Let's take a look round the world at what's business stories
Sarah Toms is in Singapore with more of the market reaction after those
That is right, it is the news investors have been waiting for
cross Asia. We want to know what the GDP figures were. 6.9%. It comes in
line with expectations. For the markets across Asia, that has been
good news. Investors have been worried about a slowdown, and abrupt
slowdown, and these figures are showing China is slowing but it's
going the way that economists had predicted. Now, this means the
market's were not only relieved but cheering after today's figures. We
turned to the Hong Kong index and that ended up at 2%. The Shanghai
index is up 3.2%. Australia shares were up as well, even though
investors were trading more cautiously, and, of course, in
Japan, the nick a turned around earlier losses today to finish up.
That is the same story in South Korea. -- Nikkei.
That's all the action in Asia. That's not last night on Wall
Street, that was Martin Luther King holiday. The states reopens today.
Looking to what is happening in Europe, the positive sentiment
flowing through to the trading day in Europe, gains across the board.
Significant as well. Let's not forget that this is really following
through from what is nearly three weeks of torrid and negative
sessions for markets across the world. A 2% jump today for the FTSE
100 is not much in light of losses we seen in markets across Europe in
the last few weeks. In terms of winners and losers, we will discuss
that in a moment. And now Nada Tawfik can tell us
what will making the headlines in the business world
in the United States today. After turbulence last week,
investors may be hoping for a quiet time on Tuesday but they are
unlikely to get it. Beyond the general fear that falls last week
may have driven American stocks towards a fair market, there is a
lot of news to be released. The banking sector remains in the
spotlight, Morgan Stanley and the Bank of America Stadium four-year
earnings. Morgan Stanley may be revealing falling profits caused by
trading revenue, but the Bank of America should show a rise thanks to
cost cutting. A slew of other big names from corporate America getting
ready to report as well, from IBM to Netflix, and America's biggest
health insurer, American Health, and its biggest airline, Delta.
Jane Foley, Senior Currency Strategist, Rabobank joins me now.
Sally touched on whether it was a bounce back. The data from China was
not as bad as it could've been, there was some relief, but the
markets are still very vulnerable. Looking not only add data from China
but from the US, there has been bad data there, the markets are nervous
about that, and in Europe, we see some more great but it is still very
low. There is a concern in the markets, what do the central banks
do? When it comes to where the money is going, it is traditional safe
havens? We've seen that this year. Currency markets at the end. The
dollar has done OK. The euro, the current account surplus in Europe, a
big surplus of savers, money comes in for the Europe. Investors are
keeping their cards close to their chest and not really wanting to
disclose risky assets. In the UK, what does it mean about where we are
in terms of recovery? More data at 9:30am. We have more warnings about
things not being as great, true for Europe but here in UK it is
particularly true? Here, it is big news, we are likely get very low
inflation. Core inflation, when you take out or oil and food prices, it
is supposed to be a better reflection of demand. It is still
very moderate despite the easing monetary policy conditions for years
now. The Bank of England need not be in any rush at all to hike interest
rates. There is a point we will be talking more about. For now, thanks.
Still to come, assessing the health and wealth of private firms.
We'll meet the man behind the website that promises to give
the inside track on how well a private company is performing,
You're with Business Live from BBC News.
Figures out overnight confirm that growth in the world's second biggest
economy, China, is at its slowest rate for 25 years.
Quite significantly if you think about the last 25 years. What does
it mean for us here in the UK? Steph is at London Gateway,
the UK's third busiest port, which recently took delivery
of the UK's biggest ever It looks pretty calm there this
morning but it tells the story of global trade, doesn't it? It really
does. You can see here a beautiful setting this morning, it's peaceful
out there but busy here. This container ship has just come in and
you can see all of those containers on it being taken off, they will be
moved to this area, there is a robotic system that works out which
containers have to go on which Laurie. This really does tell a
story of international trade. We are a country that imports a lot of
products here -- lorry. We export a lot as well. China is an important
trading partner for a business like this. As you mention, this company,
this port, took their biggest ever shipment coming in from China on New
Year's Day. It is important for them. When things slowdown in China,
as we heard overnight that figure you mentioned about the slowdown,
the slowest paced growth for the last 25 years, for a business like
this one, it is a concern, does mean they went get as much business here?
The slowdown is very much about things cooling in China, surrounding
export and import, they are not trading as much with other countries
and, because of that, they have seen debt spiral, they have taken on a
lot of debt in the last decade, we've seen massive growth. We have
to remember we are talking about growth in China at 6.9% last year,
it is still a great figure when you think of how much we grow in the UK
at the moment. It is nowhere near that. There is concern though
because it is not like what it was in China, it was growing a lot
faster. It has slowed now. This tells a story though of
international trade here. Thank you. It is a story where the containers
would come in full of goods from China and not necessarily go out
that way either. Our top story, China's economy grows
at its slowest pace for 25 years in 2015, marking a rollercoaster
year but is within If you are on Twitter and you are
having trouble, apparently the website is down. We can show what
they're telling us at the moment. That's what you're going to be
welcomed by if you're trying it get on Twitter or use Twitter today. But
we are technically working for a change! No worries there.
Everything, so far, I'm going to curse it now! If you're looking at
the screen, it is not us, it is Twitter!
Now, we often take it for granted that we can scrutinise the profits
They're listed on the world's stock markets and have
to make their accounts public, but private firms don't
have the same responsibilities to be so transparent.
The companies you can see here all have one thing in common -
they're all private and they dominate the economy.
Public companies represent less than 1% off all business in the US.
The rest are privately run by private owners.
While that brings lots of freedoms, not being beholden
to shareholders, fewer regulations over their financial statements
and less scrutiny from people like us.
But if you wanted to learn more about those firms or even invest
in them, how can you get information about private businesses?
Our next guest says he has the answer.
Damian Kimmelman is founder and Chief Executive of DueDil.
Damien nice to see you. Just explain how this works. It strikes me from
that introduction that there are some things private firms want to
keep private, but you're trying to cast a bit of a spotlight on those
things. How do you get that information? So most people assume
that the private in private companies refers to privacy when in
fact it refers to privately held and as such people are sort of blind to
the fact that there is a wealth of data on private businesses, but it
is siloed. It is siloed in the businesses themselves. It is siloed
in Government institutions like Companies House or HMRC, it is
siloed online and we take all that information together and
contextualise it. And it is a service that you ask your customers
to pay for, is it? ?100 a month, is that correct? Annually, charged
annually. And for that, they get, access to all this information which
is actually freely available already. So why would I sign up? So,
most businesses use services like Google or Linked In which aren't
purpose-built solutions to find out this information. They use our
service because it is purpose-built. That's why we see so many of our
businesses that use it like Dell, Aviva, Linked In use our service to
really find the right businesses at the right time in the right
location. This was borne out of necessity. It says you had a bad
experience with a firm and therefore, you know, you were burnt.
Tell us what that was. What happened to give you this idea, this spark,
this is what the market is missing? So I went into business with a guy
who wasn't that savoury. He falsified his accounts. He used his
falsified accounts to get a loan and I had not done my due diligence, my
research, I realised there was a wealth of information on these
businesses and it could be used for solving the two biggest problems
facing businesses. How do I get new customers and how do I get paid? At
the moment you operate in the UK and Ireland, is that correct? And 18
other countries. In Europe mainly? Yes. That's mainly in Europe. In
terms of further expansion, I mean, to be fair, tracking all these
companies in those countries, I would imagine is an enormous task
anyway for your company, but your thoughts on future expansion beyond
that? Indeed. Well, let's not discount Europe as the second
largest economy. There is a wealth of opportunity within Europe, but
yes, we will be expanding internationally very soon.
You have talked about experiences that you've gone through. It strikes
me, and I asked you at the beginning, about the sort of
information that these firms wouldn't want to release. Do you get
any of these private firms of certain bits of information that
people don't made public. You must get a bit of backlash from them
saying I don't want this out there, there is a reason we have not listed
on the stock market for that reason? Of course, we do. So you know, the
biggest number of complaints that we get are from actors and actresses
who have fibbed about their age and own companies. But the reality is
that the biggest problems facing private businesses is not keeping
this private, that's such a misconception, it is really how did
I get new customers and how do I get paid? Interesting stuff. Best of
luck with it. Damien, really nice to see you. Thank you for coming in.
You go on holiday and you're no longer able to stream sites that
you are at home like Netflix or BBC iPlayer?
This is because companies block content that is not licensed
But the EU is trying to change that and ban the practice from happening.
One expert says there's a lot at stake.
One thing is pretty certain from a consumer prospective, it is good
news in that we are definitely going to get content portability very
soon. That's the thing about taking your existing content abroad with
you. It is less far how the Commission is going to go with this.
I don't think it knows itself. It is still being debated. The defence of
the media companies really true. The media companies say if we split the
market up territorially, we can earn more money for creators and if that
argument stands up, maybe the Commission won't go the whole way.
Jane, welcome back. MI5 is rated the best workplace for employees
equality. This is the Stonewall list of the best 100 employers for
lesbian and gay staff. MI5 topping that list? It is great news. If you
go back some decades they used to dig out homosexual people because it
was illegal and it could be used as blackmail, it is wonderful that we
have come to a different part of the spectrum. It is right that the
people who work for MI5 have got to represent the communities they live
in. There is no use in having people looking like James Bond when you are
trying to find intelligence from different... They don't look like
James Bond, Jane, is that what you're telling me. James Bond and
Johnny English. He would be extremely visible if he was trying
to do undercover work in some communities. It is quite a
scientific process, it is not just that they have a notional group that
is supporting lesbian or gay staff. There are strict criteria that have
to be met by the employees who make the list? That's right. If we talk
about MI5, but we can talk about other big organisations at the top
of the list including the Metropolitan Police, the Royal Navy
and again these are old institutions. It suggest that is
they have been deliberately and very successfully trying to change their
ways. It is a success story. Let's talk about OPEC now. It is claimed
we've defeated the shale revolution. This is in the Times newspaper. I
remember last year talking about this, you know, middle of last year
when the sort of start of the oil price slide began and we all talked
about the problems this would cause for shale producers where it is so
much more expensive to get the stufs out of the ground? The Saudis and
the Middle Eastern OPEC players have done this. Now, it does seem from
this report, that they were trying to focus on the shale producers.
Shale, of course, being a new... On what grounds? They are still
operating. If you look at the amount of debt and if you look at the
likelihood that some of these companies will go into default,
that's really quite significant. I was looking at the S and P data. It
said that last month around about 50% of energy junk bonds are
distressed. In 2015 they said many of the companies in the US were
being subsidised because they were running at a loss and this year some
would go? It is not just in shale. Metals and mining because those
prices at multiyear lows as well, it is not just oil. This is what Saudi
wanted to do. They wanted to be the dominant player and what had
happened over the last 25 years, there had been more investment and
other types of supply of energy and of course, that meant that there was
less power for the Saudis. A brief word before time is up on motor
insurance forming an alliance to tackle driverless cars. Whether or
not this is add and good story depends whether you are an insurer
or consumer. Premiums could go down by 80% in 25 years time. But from
the insurer's point of view, loss of revenue treatens their business, so
they are getting together to see what they can do about it. Liability
for accidents could shift from the driver to the manufacturer when
things are automated. It will be interesting, who do you blame if you
crash if it is a driverless car? The lawyers are usually the ones that
come out with plenty of work! We're back tomorrow. It is Davos.
See you soon. Hello. We're stuck with the cold
weather, but where you had the lowest temperatures overnight, here