19/01/2016 BBC Business Live


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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


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