:00:09. > :00:11.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:12. > :00:13.The bear necessities - investors head for safe havens
:00:14. > :00:16.as the global market turmoil deepens.
:00:17. > :00:34.Live from London, that's our top story on Thursday 21st of January.
:00:35. > :00:37.Stock markets in Asia suffer further losses a day after global turmoil
:00:38. > :00:41.saw billions of dollars wiped off the value of shares worldwide.
:00:42. > :00:48.It's rate decision day for the European Central Bank.
:00:49. > :00:53.We'll be looking at how the global volatility is making it much harder
:00:54. > :01:00.And we are 30 minutes into the European trading day
:01:01. > :01:06.with traders on high alert again, so shares are mixed not knowing
:01:07. > :01:09.which way to head after Wednesday's heavy losses and the price of oil
:01:10. > :01:14.And how do you reach over a billion people?
:01:15. > :01:16.We'll be talking to the chief executive of India's largest private
:01:17. > :01:19.sector bank about the challenges of reaching customers
:01:20. > :01:25.And Facebook's chief operating officer Sheryl Sandberg says men
:01:26. > :01:27.still run the world and it's not going so well.
:01:28. > :01:31.Basically if we had more women running our global economy,
:01:32. > :01:54.And its becoming an all too familiar tale, the turmoil on financial
:01:55. > :01:58.markets which shows little sign of abating.
:01:59. > :02:00.There have been further falls in Asia today.
:02:01. > :02:05.in Singapore in just a moment, but lets just recap the roller
:02:06. > :02:11.At one point the Dow Jones industrial average was down
:02:12. > :02:17.They did stage a recovery later in the day to wipe out some
:02:18. > :02:21.So far, though, the damage to global share prices has been enormous.
:02:22. > :02:24.Here's the big number - around 15 trillion dollars
:02:25. > :02:27.is the amount that has been wiped off stock markets around the world
:02:28. > :02:30.since the peak according to Bloomberg.
:02:31. > :02:33.The fears of many investors are now being realised.
:02:34. > :02:41.That's when an asset slumps 20% or more from its peak.
:02:42. > :02:44.It signals a serious loss of confidence and usually means more
:02:45. > :02:51.Well, on Wednesday London's FTSE 100 entered bear territory,
:02:52. > :02:54.down 20.5% from its peak in the summer.
:02:55. > :02:59.Japan's Nikkei 225 is there already.
:03:00. > :03:04.And the index of global shares known as the MSCI is just a whisker away,
:03:05. > :03:20.Our Asia business correspondent Karishma Vaswani is in Singapore.
:03:21. > :03:29.Tell us more about how things went today. Well, markets in ASEAN
:03:30. > :03:33.started the day faring better than most expected, but almost every
:03:34. > :03:38.single one turned negative by the time they closed. Chinese shares
:03:39. > :03:43.were down 3%, despite the huge cash injection from the central bank.
:03:44. > :03:49.They are doing that a lot these days to shore up support and confidence.
:03:50. > :03:56.Korea and Hong Kong were down as well. Japan's new K lost 2.4% after
:03:57. > :04:06.entering bear market territory on Wednesday. Initially Tokyo shares
:04:07. > :04:11.were doing better. But as the day progressed the yen strengthened and
:04:12. > :04:18.it got investors nervous and worried about corporate profits. It is not
:04:19. > :04:23.just the Japanese yen. Do not forget the slowdown in China and lower oil
:04:24. > :04:27.prices or affect things, so it is likely shares will continue to be
:04:28. > :04:38.volatile in this part of the world. Good to speak to you. Let's show you
:04:39. > :04:45.the numbers. The price of Brent crude in the UK is trading below $28
:04:46. > :04:54.a barrel. Let's look at Europe as it is trading now. All these markets
:04:55. > :05:01.are high across Europe and Germany, France up 1% and so is London. But
:05:02. > :05:11.these markets lost serious amount of ground on Wednesday. London entered
:05:12. > :05:15.a bear market. Is this a short lived upside for Europe's markets. I am
:05:16. > :05:17.going to hand over to you. Is it my turn? We get a little chat.
:05:18. > :05:24.Maike Currie joins us from Fidelity Worldwide Investments.
:05:25. > :05:37.There they are. Market turmoil, more than $3.5 trillion wiped off
:05:38. > :05:42.yesterday. The turmoil on the market does not necessarily reflect the
:05:43. > :05:47.economic picture on the ground. Yes, as we have heard so many times stock
:05:48. > :05:48.markets do not reflect what is happening in the broader economy and
:05:49. > :05:57.if we look at the fundamentals, things are looking better,
:05:58. > :05:59.especially in the US and the UK. The IMS growth forecast of three or 4%
:06:00. > :06:09.is higher behind these falls? One is
:06:10. > :06:13.valuations. Since 2009, valuations have doubled, but earnings growth
:06:14. > :06:17.has not come through and investors are asking if they are paying the
:06:18. > :06:34.right price. Then the biggest investors are withdrawing
:06:35. > :06:37.panicking, they should be sticking to their strategy and they say look
:06:38. > :06:42.at the fundamentals. The fundamentals are there, but do you
:06:43. > :06:46.think the markets will have to accept or realise that a slow in
:06:47. > :06:56.China and lower oil prices is the norm? Certainly for 2016?
:06:57. > :06:59.Absolutely. China is on a path of transformation to a consumption led
:07:00. > :07:06.economy and that will not be without pain. With China's fixed asset
:07:07. > :07:11.investment it is off the scale. But it does not mean China is in
:07:12. > :07:14.meltdown, it is slowdown. You know the routine. You are going to come
:07:15. > :07:18.You are going to come back and take us through the newspapers.
:07:19. > :07:20.Meanwhile, it's rate decision day for the European Central Bank.
:07:21. > :07:24.While in the past, troubles in southern Europe have slowed
:07:25. > :07:26.growth, now it's the same issue troubling global markets
:07:27. > :07:33.which are vexing Europe's central bank.
:07:34. > :07:39.Nobel Prize winning economist and professor at Yale University
:07:40. > :07:52.No doubt all the market turmoil we have just been speaking about, the
:07:53. > :07:57.slowing of China, the oil prices, Mario Draghi, the boss of the
:07:58. > :08:01.European Central Bank, what do you think he should be doing? What do
:08:02. > :08:08.you think the European Central Bank needs to do? Well, the European
:08:09. > :08:11.Central Bank's primary mission is not to stabilise the stock market.
:08:12. > :08:16.On the other hand there is a feedback loop going on between the
:08:17. > :08:20.stock market and the general economy. The stock market is
:08:21. > :08:26.well-known a leading indicator of the aggregate economy and so it is
:08:27. > :08:31.troubling when it declined this much. If I were Mario Draghi, I
:08:32. > :08:38.would be considering more stimulus. It is funny you should say that,
:08:39. > :08:42.this is Sally in the studio, I know last week Mario Draghi had a private
:08:43. > :08:47.meeting with Angela Merkel, which he does regularly, but in that meeting
:08:48. > :08:52.it was expected she would put pressure on him to start an exit
:08:53. > :09:00.from the stimulus programme, because for Germany it is not the right
:09:01. > :09:07.path. I do not think this is the time for an exit. This is a time of
:09:08. > :09:11.concern. We had big drops in August and now they are coming again
:09:12. > :09:20.several months later. It is changing the mood. People are saying
:09:21. > :09:25.different things and it has a darker, more ominous look to it now.
:09:26. > :09:33.This is the time for the central bank not to try to stabilise the
:09:34. > :09:36.market. The US market particularly, we do not want to worry about the
:09:37. > :09:42.stock market, but we do not want to see a meltdown. You mentioned the
:09:43. > :09:49.phrase it was not a good time to exit stimulus in Europe. Let's go
:09:50. > :09:56.from that to a British exit, David Cameron speaking at Davos today. In
:09:57. > :10:04.terms of economics will Britain be better off or worse off in or out of
:10:05. > :10:07.Europe? You say in terms of economic 's, unfortunately there is no clear
:10:08. > :10:18.dividing line between economic 's and politics. Britain's except does
:10:19. > :10:23.not feel right. I am not involved directly, but it seems like European
:10:24. > :10:28.unity was a dream that came out of World War II and I would like to see
:10:29. > :10:33.it continue personally. It might be better for the UK in terms of narrow
:10:34. > :10:39.economic thinking to pull out, but I would not let that dominate. Thank
:10:40. > :10:45.you, we appreciate your time. Enjoy Davos, it looks like a beautiful
:10:46. > :10:47.day. Nicer than it is here. I am just talking about the environment.
:10:48. > :10:49.I am just talking about the environment.
:10:50. > :10:51.The boss of Italian bank Monte dei Paschi di Siena
:10:52. > :10:53.has admitted some customers have been pulling out their savings
:10:54. > :10:55.but called the fall in deposits limited
:10:56. > :11:01.Italy's third biggest bank was founded in 1472
:11:02. > :11:04.and is thought to be the world's oldest.
:11:05. > :11:06.It has lost 60% of its stock-market value this year
:11:07. > :11:14.amid fears about its mountain of bad loans.
:11:15. > :11:20.more than 1,000 investment banking jobs,
:11:21. > :11:24.with Asian operations hit particularly hard -
:11:25. > :11:26.Bloomberg News says the banking giant may abandon
:11:27. > :11:28.several Asian markets altogether as it battles to cut costs.
:11:29. > :11:36.Barclays has refused to comment on the reports.
:11:37. > :11:47.There is the story breaking on the website about Pearson, the British
:11:48. > :11:54.education publisher, shares up 8%. The shares may be up, but look at
:11:55. > :12:00.that, 4000. Investors like to hear about a company restructuring. It
:12:01. > :12:05.said it had to cut its earnings forecast for last year and this
:12:06. > :12:12.year, so it is clearly struggling and 10% of the workforce is going.
:12:13. > :12:20.We are going to talk about car is very shortly, but I like this. This
:12:21. > :12:24.is Jaguar Land Rover. We will not rot up and win it. We will add
:12:25. > :12:34.value. I like that, I thought it was very cool. We will be talking to the
:12:35. > :12:36.chief executive of India's largest private bank who is trying to reach
:12:37. > :12:52.people in rural areas. UK car production is at a 10-year
:12:53. > :12:57.high and more of them are exported than ever before and more than 80%
:12:58. > :13:03.of them get shipped abroad. Then is in Solihull this morning, looking
:13:04. > :13:11.very casual with those robots all around him. We export a lot, but is
:13:12. > :13:16.China a big concern? Record car sales in the UK last year, 1.5
:13:17. > :13:23.million cars were made right here and 1.8 million of them were sold
:13:24. > :13:27.around the world. We even sold cars, and our second biggest export market
:13:28. > :13:33.is America taking on the likes of General Motors and Ford in their
:13:34. > :13:38.home market. It is an industry we had all but written off a decade
:13:39. > :13:42.ago. Professor David Bailey is with us. We wrote off carmaking and yet
:13:43. > :13:50.there has been a big resurgence. What changed? The UK is good at
:13:51. > :13:54.making cars and what we have seen is a huge resurgence in assembly, great
:13:55. > :13:59.skills base, good relationship between unions and management, big
:14:00. > :14:04.investment and a supportive industrial policy. It has been so
:14:05. > :14:10.successful the supply change has struggled to keep up. We want to see
:14:11. > :14:18.the benefits of that assembly in the wider economy. That is the issue. It
:14:19. > :14:23.is a big success story, but all of this massive machinery requires a
:14:24. > :14:29.lot of investment. One of these machines probably costs about
:14:30. > :14:34.?100,000. I want to show you something. If we think about the
:14:35. > :14:40.size, the scope and the expense of those machines, what they are doing
:14:41. > :14:47.is putting this tiny little thing, a rivet, that will hold the car
:14:48. > :14:52.together. That is a small component of many thousands that go into this
:14:53. > :15:00.process, but it shows the power of this technology. What are your
:15:01. > :15:04.goggles for? What? Why are you wearing glasses?
:15:05. > :15:08.You are not near dangerous stuff. It is health and safety, I hope he does
:15:09. > :15:13.not drop that little thing, it looks expensive.
:15:14. > :15:17.And more parcels have been sent this year, that is on the Business Live
:15:18. > :15:19.page. You're watching Business Live,
:15:20. > :15:21.our top story: Stock markets in Asia
:15:22. > :15:22.suffer further losses, a day after global turmoil
:15:23. > :15:33.saw billions of dollars In Europe right now, markets across
:15:34. > :15:38.the board are trading up around about 1%, but let's not forget that
:15:39. > :15:44.yesterday they lost more than 3%, the main markets in Europe, and for
:15:45. > :15:49.London a significant, symbolic day, it entered into bear territory.
:15:50. > :15:52.$3.5 trillion since the beginning of the year, since the peak.
:15:53. > :15:55.Let's look at the world of banking in one of the most difficult
:15:56. > :15:56.but exciting countries in the world, India.
:15:57. > :16:02.with the chief executive of ICICI Bank, Chanda Kochhar,
:16:03. > :16:04.but first let's look at some of the basics.
:16:05. > :16:06.ICICI is the largest private Indian bank
:16:07. > :16:08.and the second biggest overall in the country.
:16:09. > :16:12.While the majority of its activities are in India,
:16:13. > :16:15.it now operates in 17 other countries around the world.
:16:16. > :16:18.The bank's home territory offers a great deal of challenges.
:16:19. > :16:22.With a population of over 1.2 billion people,
:16:23. > :16:29.and access to services is not an easy task.
:16:30. > :16:33.Under Mrs Kochhar, the bank has put a particular focus on mobile banking
:16:34. > :16:37.to broaden access, particularly into rural areas.
:16:38. > :16:46.Well, let's speak to Chanda Kochhar now, who joins us from Davos.
:16:47. > :16:56.Welcome to the programme, thank your -- thank you for being with us,
:16:57. > :16:59.let's talk about the success of the Indian economy, how do you think
:17:00. > :17:08.India is managing to see the growth it is seen when everyone around it
:17:09. > :17:12.is slipping? If you look at the Brics, you are the last woman
:17:13. > :17:17.standing! Yes, first of all, I think the entire macroeconomic factors for
:17:18. > :17:21.India have been managed very well, we have built strong reserves, we
:17:22. > :17:26.made sure we build another import covers. Of course, the fall in oil
:17:27. > :17:31.prices has helped substantially. Inflation has been part of the
:17:32. > :17:34.control, so with this our currency has been relatively more stable
:17:35. > :17:38.compared to the rest of the world. Second, I think there is a whole lot
:17:39. > :17:43.of effort being put in by the government to attract more foreign
:17:44. > :17:47.direct investment in some of the various, very important sectors, and
:17:48. > :17:52.that has brought in a lot of foreign investment. Third, I think on the
:17:53. > :17:55.ground a lot of focus on increasing production of coal, increasing
:17:56. > :18:01.production of iron ore, so all that has got the economy ticking, and
:18:02. > :18:05.that is why we are where we are. We in India believe our potential is
:18:06. > :18:09.even more, and we ought to be doing even more and even better than this.
:18:10. > :18:14.Talking of foreign investment, some big names in the world of
:18:15. > :18:17.technology, Google and Facebook are talking extensively about doing all
:18:18. > :18:23.they can to connect the mass population of India to the world
:18:24. > :18:27.wide web etc, and for you, in banking, that must be the key to
:18:28. > :18:31.getting those rural areas the kind of access to banking that they
:18:32. > :18:37.require. It has to be an online service by a smart device.
:18:38. > :18:41.Absolutely, I think the way technology and use of mobility and
:18:42. > :18:46.mobile is penetrating in India, I think the business models for
:18:47. > :18:51.banking are changing in India. So we have, of course, 1 billion mobile
:18:52. > :18:55.users in the country, 400 million people using internet, and most of
:18:56. > :18:59.them use internet on mobile. And that gives us the opportunity to
:19:00. > :19:04.actually spread the access of banking to those people who, in the
:19:05. > :19:08.past, could not access banking. And as a country, as a whole, in less
:19:09. > :19:13.than 18 months, we have opened more than 200 million accounts for people
:19:14. > :19:19.who have not had bank accounts so far, and just in our bank, mobile
:19:20. > :19:23.banking has crossed even banking in branches. The number of transactions
:19:24. > :19:29.that take place on the mobile phone are much more than what take place
:19:30. > :19:33.in branches. Branches total less than 10% of transactions, and all
:19:34. > :19:38.the rest are done on this technology based platform. We have a very
:19:39. > :19:42.strong mobile offering, more than 100 kind of banking products and
:19:43. > :19:48.services through the mobile phone. Can I ask you this while we have got
:19:49. > :19:55.you, no disrespect here, you are a rare breed where you are in Davos,
:19:56. > :20:01.because only 17% of the big power hitters are women. Sheryl Sandberg
:20:02. > :20:06.of Facebook said that men still run the world, but I am not sure it is
:20:07. > :20:09.going that well. I want to ask you, do you think if more women were in
:20:10. > :20:17.power in economic institutions, banks and you name it, would we have
:20:18. > :20:25.a richer world, do you think? Well, I think in any case women are almost
:20:26. > :20:30.50% of the talent, so if we had more women participating in the economic
:20:31. > :20:35.development and economic growth, we would just ensure that we are using
:20:36. > :20:39.more and more of the right talent available and creating diversity in
:20:40. > :20:45.decision-making. You know, my belief is, in every decision making, we
:20:46. > :20:54.need diversity of thought, and that is where gender diversity really
:20:55. > :20:58.helps. So to have more women making better economic participation, just
:20:59. > :21:01.more diversity in decision-making, making decisions even more
:21:02. > :21:09.comprehensive. Chanda Kochhar... And I must add that India is actually
:21:10. > :21:14.doing very well on this count. I mean, you have a large part of the
:21:15. > :21:18.banking sector in India being run by women. Really good to hear, as we
:21:19. > :21:23.were just about to say, it has been a pleasure to have you on the
:21:24. > :21:28.programme, Chanda Kochhar, chief executive of ICICI Bank. Thank you.
:21:29. > :21:33.She hadn't finished! Let's talk about what the viewers are saying,
:21:34. > :21:47.their views on that subject. Fabry is -- Fabrice says men are not to be
:21:48. > :21:52.blamed, it is just a bad part of the cycle, run the world, girls. Another
:21:53. > :21:56.says, without being rude, would there be much difference if there
:21:57. > :22:00.were more women in power? Lemmon says, as long as we can remember,
:22:01. > :22:03.men have been in power, maybe a change of shift would not be a bad
:22:04. > :22:11.thing. We have a special Davos page,
:22:12. > :22:15.because many of the world's key business leaders, politicians etc
:22:16. > :22:19.are in Davos at the moment, and one of our leading ladies, Tanya
:22:20. > :22:24.Beckett, you can see her there discussing the key issues. She is
:22:25. > :22:30.interviewing many of the key people, as is Kamal Ahmed, our economics
:22:31. > :22:36.editor, who is there as well. And Leonardo DiCaprio attacks corporate
:22:37. > :22:41.greed, that is amazing, isn't it? There are always Hollywood stars
:22:42. > :22:43.there. By Mikey makes about $30 million a film!
:22:44. > :22:51.I went a few times, and Richard Gere was there. Maike is back with us, by
:22:52. > :22:55.the way. Security is very tight, and they would not let Richard Gere
:22:56. > :22:58.through the security, because he did not have his badge on. He was
:22:59. > :23:06.desperately trying to find it under his coat, I was saying, don't you
:23:07. > :23:11.know who he is?! Sharon stone was there as well. It was a bit of a
:23:12. > :23:20.double act, I have to say. Are you from the nineteen eighties?!
:23:21. > :23:25.She is still around, you know! Maike, what are we going to start
:23:26. > :23:33.with? Since we're on the theme, shall we start with Sheryl Sandberg?
:23:34. > :23:36.You interviewed a power hitter this morning, a female, I interviewed the
:23:37. > :23:42.president of MasterCard yesterday, another woman, at Davos, and she
:23:43. > :23:50.said that there have been studies done, if more women ran the world,
:23:51. > :23:54.we might be $12 trillion richer. There is the benefits of balance and
:23:55. > :24:01.diversity of thought, and I think it is quite staggering in this day and
:24:02. > :24:08.age that if we look at the FTSE 100, of the 100 companies, we only have
:24:09. > :24:11.six female CEOs, it is really staggering. Look at executive
:24:12. > :24:18.positions, a number of nonexecutive positions have gone up, but
:24:19. > :24:23.executive directorships, only one in ten in the FTSE 100, and lower down
:24:24. > :24:27.the company scale, it is one in five. Do you feel, if we could ask
:24:28. > :24:33.you a personal question, do you feel held back at all? Is it an obstacle
:24:34. > :24:37.for you? No, I don't, there are lots of opportunities, you have to go out
:24:38. > :24:42.and grab them, but it would be an advantage if we had more leaders in
:24:43. > :24:48.place you could look up to, who set an example. I think Sheryl Sandberg
:24:49. > :24:52.is a good example of that. Even Sheryl Sandberg, who makes a lot of
:24:53. > :24:57.good points, and I would encourage every to read her book, even she
:24:58. > :25:07.works for a man. She does, Mark Zuckerberg, we know him well.
:25:08. > :25:16.Luck, Abba is back together for the promotion of a new restaurant in
:25:17. > :25:25.Stockholm, a temp one restaurant. Are you a fan? I am a very big Abba
:25:26. > :25:28.van. I will definitely be going. What a fantastic marketing event,
:25:29. > :25:33.they will probably never need to advertise again, do you imagine? I
:25:34. > :25:37.don't think so. I know they have been trying to get them together,
:25:38. > :25:42.they were once offered $1 billion and they said no. They don't need
:25:43. > :25:47.the money. Their royalties must be incredible. It has been great to
:25:48. > :25:51.have you on the programme. That is another addition of Businesslike, we
:25:52. > :26:08.will see you tomorrow. OK, bye.
:26:09. > :26:14.Good morning, although it is not as cold as this time yesterday
:26:15. > :26:16.temperatures are widely below freezing across the eastern side of
:26:17. > :26:18.the country,