08/02/2016 BBC Business Live


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


Bundle. Powering ahead, or is it? India's growth figures are expected


to show it's one of the fastest growing economies in the world,


but do the official figures reflect India's growth figures are expected


to show it's one of the fastest growing economies in the world,


but do the official figures reflect Live from London, that's our top


story on Monday, 8th February. India is poised to show it's


the world's most dynamic economy amidst a sluggish global picture


but who is really benefiting Also in the programme:


Lunar New Year celebrations look to the monkey for good fortune,


but there's mischief in the air as China sees its massive foreign


exchange reserves shrink. And a brand new trading


week is under way - in Europe with little guidance


from Asia as most of the main markets there are closed


for the new year holidays. We'll get the inside track


on what it takes to make it big The founder of one of the industry's


biggest players will join us And as Valentine's Day


approaches - are you a fan Or are you an old romantic


and prefer the traditional methods? It is the killer combination of love


and money. More on that in a few minutes. First, let's focus on the


Indian economy. They today we will find out how it grew in the final


three months of last year. Analysts will be looking


to see if the country which imports 80% of its oil


will have benefited from the collapse in the price


of the black stuff. The World Bank predicts that India


will grow by 7.8% this year, that's the fastest rate for any


major global economy. If we look at the trend from 2013


through to the projected growth we can see that India is predicted


to not only be ahead of the US but also the other global


growth giant, China. China is in the red and the US is


the blue line. One of the key advantages India has


is the age of its population, half the country is under the age


of 25 and that provides a strong However it's not all good news,


the country needs to create an average of 8.4 million jobs


a year just to keep up growth and maintain


their unemployment rate. And that's quite


hard to do in a country that's ranked 130th out of 189 countries


when it comes to the ease That's behind Nicaragua,


Uganda and even Iran. Our Mumbai Correspondent Yogita


Limaye joins me now from India. We expected those figures to be


good, putting India in one of the top spots for economic growth.


That's already there are questions about whether it reflects the


reality on the ground. What are you hearing now? It would definitely be


fair to say there is scepticism about the figures. The Government


revised the way they calculate GDP data in January last year, and that


was when we saw the 5% growth in previous years suddenly becoming 7%


and more than that. What nobody disputes, even if they wonder if it


should have the title of the fastest-growing economy in the


world, nobody disputes that Indian growth is picking up that we have


seen that on the ground over the past year. We have seen industrial


output picking up, mining picking up. And the people of India have


been helped by oil prices being low. Inflation has not gone up. If you


went out today on the streets, and we have been out over the past year


asking people if they see any effect on their lives, and people are very


likely to say that compared to previous years, they are having


better lives today. But the problem that Sally talked about, job


creation, I am not sure that is being sorted. One thing that has not


been happening throughout 2015 is private investment. The Government


really needs private players, big manufacturing companies to set up


new factories to create lots of new jobs that that is not happening yet.


As far as the view on the ground is concerned, two big challenges remain


the bureaucracy in India so businesses can get things done and


infrastructure, whether the necessary infrastructure is in place


to allow businesses to grow at the rate that they could be growing at


if they did not face those problems. That is right. Later this week, on


Saturday, the Government is launching a huge summit in Mumbai


called the Naked India week. They are hoping to make it easier to do


business in India and invite manufacturers from around the world


and domestic players to set up factories that plants, open


companies. Has it become easier to do business? The Government has been


trying to pass a particular tax law that would really simplify tax


procedures in India and they have not been able to do that. They were


hoping to prevent it in April 2016 but it has not cleared Parliament


yet so the struggles remain. Thank you. Some other stories now.


Nearly 150 oil platforms in the UK's North Sea could be scrapped over


the next decade, according to analysts.


The estimate from Douglas-Westwood says that the low oil prices


will result in many oil fields in UK waters,


including the North Sea, becoming uneconomic and less


Germany's financial watchdog says it has cut


down the German arm of Canada's Maple Bank.


The bank has been forbidden from taking customers' payments,


other than those made to repay debts.


In September, German prosecutors searched the bank's offices as part


of an investigation into tax evasion and money laundering.


Over 100 million people tuned in to watch the Super Bowl last


night and as always, advertisers did their best to cash


Companies paid as much as $5 million for a 30 second slot with Doritos


and Mountain Dew's adverts receiving over 300,000 tweets between them


Before the game had even kicked off this year's adverts were viewed more


Let's have a look at the Business Live page. Dangers to the world


tourism industry as a result of terrorism and the Zika virus hanging


over parts of South America. They say the industry will manage to


whether this crisis, as it is growing by 3.5% compared to last


year, so not all bad news despite the headlines. Another story on


here, Rand gold. Production is hitting a record high. The chief


executive Mark Bristow is quoted describing last year as one of the


best years in the company's mystery. Of late the price of gold has been


edging upwards actually as people's concern about the year ahead and


nervousness about the global economy has meant people are buying more


goals. That old adage that it is a safe place to put your cash in


turbulent times. China's foreign currency


reserves slumped by nearly China has been running down its vast


foreign currency reserves in an attempt to boost the value


of its own currency. Tim McDonald is in our


Asia Business Hub in Singapore This is something that the Chinese


authorities revealed on Sunday. Most people trying to digest what it


means today. That is right. $100 billion flowing out in the space of


a month seems like a lot, following a slump of 420 billion in the second


half of 2015. This flood of cash is being used to prop up the value of


the currency and it has been falling because investors are worrying about


the slowing Chinese economy and they are moving their money overseas in


search of better returns. This puts downward pressure on the currency,


so the Bank of China is using $3.23 trillion to slow the descent. This


strategy is not unique by any stretch of the imagination but there


are questions about whether they can continue to empty the cough is so


rapidly, and some analysts say it is causing more worry among investors,


so more people will move their money overseas and start the process


again. Thank you. Looking at the markets, these guys were definitely


closed on Friday, because most of the markets in Asia will be closed


all week because of the lunar New Year celebrations. China is the


exception. It is a turbulent day because when I came in today, it was


down, because Toyota shares are down for example. That is rightly's close


in the United States reflecting the jobless figures that came out on


Friday in the USA. Add all of the European market at about 0.5%. The


price of oil is higher today and energy stocks doing rather well as


well. Just to say, the jobs figures out on Friday, how many jobs have


been added to the US economy, which was disappointing. Still markets


around the world stage testing that news.


This is what Nada Tawfik had to say that since filing this report she


has had her baby! This report looks at the total


number of drilling rigs in operation and their productivity, so traders


will be interested in those figures as oil prices remain a concern along


with the supply glut. 21st Century Fox also released its results. At


quarter of the 2016 fiscal year, after the media Corporation


announced they were looking to reduce costs and staffing by $215


million in the fiscal year that begins in July. And there is a


possible merger with Mattel to create a massive toy company.


Massive congratulations to Nada Tawfik and we will let you know when


she gets back into the office. Joining us is Sue Noffke,


UK Equities Fund Manager, Let's talk about India. How closely


will the rest of the world be talking and watching India? I think


increasingly because there are questions hanging over the two


largest world economies, because that is putting greater focus on


everywhere else and Indian growth is something that is big and powerful


enough, but with some growth will it be sufficient to bail out the


weakness we are seeing in China and the slow down in the USA? Years ago


we were talking about Brazil, Russia, India, China, South Africa,


the bricks. They are falling. This is the only brick left in the wall


and it is interesting how it is developing as an economy. Yes, a


large and useful economy, but one where bureaucracy, which was


mentioned in your report earlier today, and other impediments to


business. When we look at India as a global economy, all that hope that


was pinned on it, and on the other bricks nations, the shine is coming


off somewhat as the slow down in the world economy goes on. Where else


should we be looking and where do we have glimmers of hope on the


horizon? Well, a lot of the world is interconnected, so the slowdowns in


other major economies of course have an impact. It is a tough ask to


expect the rest of the world's fast-growing economies to take up


the baton entirely. They will do some of that running so. Thank you.


We will see you later and there is plenty more to discuss and plenty in


the newspapers as ever. Still to come: Flirting


with a fortune. We get the inside track


on the dating business and how firms are vying for the top spot


in the $2 billion industry. The boss of one top dating


firm joins us live. You're with Business


Live from BBC News. In the UK, the energy company Total


says the first gas has come ashore at its new plant in


the Shetland Isles. It's thought the site


will eventually produce almost Our Scotland Correspondent


Lorna Gordon is there. Tell us more about this announcement


that came through just a few hours ago. Oil has been coming ashore to


Shetland for about 40 years but what we are seeing now is this new gas


plant behind me operated by Total opening up. It is difficult to get


to gas fields in deep waters West of Shetland but they are considered


important reserves strategically. The Government estimates they may


contain 70% of UK's remaining gas. When this plant is fully online it


could provide enough energy for up to 2 million homes. It really is


good news for an industry that more widely is really suffering because


of the downturn in oil and gas prices and of course that is really


good news for these islands in this most northerly part of Britain. That


is what I wanted to pick up on, what it could mean for the people in and


around where you are today. What does it mean for the island?


Shetland is a really interesting part of the country, the only part


of the UK with an oil and gas fund, a sovereign wealth fund. That fund


and the council reserves are worth about half ?1 billion. In terms of


that capital, it is only second to the city of Westminster. It is an


awful lot of money. They have saved for a rainy day. Every barrel of oil


that has come onshore has given a tied to the island and the same will


happen with this plant. It has paid for amenities and gone to good


causes. The islanders are very lucky and they know it. They welcome the


gas plant coming online. HSBC, it has been a long running


saga, about whether HSBC will keep its head quarters in London. It was


debating whether it would move them to Hong Kong.


They say the bank levy makes the playing field uneven and it is


unfair and it would restrict them from being here. Perhaps we'll get a


decision later. Our top story: All eyes are on India


as the country gets set to report But, as always, there are worries


about a slowdown in Asia's third-largest economy and questions


over how accurate that official As St Valentine's Day approaches,


our next discussion is a timely one. In recent years it has grown


from a niche business venture The online dating industry is now


estimated to be worth more In fact, it's now so big the UK


Government checks on the price of subscriptions to help calculate


the headline rate of inflation. One of the industry's


market leaders is Venntro, who own a number of dating sites


including Just Singles and Smooch. As well as running their own sites


Venntro also provide the software and infrastructure to allow


25,000 other business Founded in a spare bedroom in 2003,


the business now turns over around $63 million a year and employs


people right around the globe. The founder and Chief Executive


of Venntro Group, Ross Ross nice to see you: Good morning.


First things first, 25,000 other dating sites. You have the


technology that powers those sites. I never knew there were that many,


really? It is niche dating around the world. So when you look at the


different users, you might based on where you live, what you job as a


job, interests and characteristics and sport, and when you look at that


across the English speaking territories, as well as UK, New


Zealand, Canada and the US, it comes up to 25,000. And you know, our


business is built on the white label platform. So for example, you know,


I don't know much about towns in Ohio or if you look at Miami and New


York and Boston, we have got partners that can build sites on our


platform for those territories. And you're kind of winning in every


which way because you are running some sites and you have got the


white label option which enables other people to run dating websites


through your services so you've got people who are trying to find a


partner, you're getting subscription money from them, but you're getting


businesses paying you, it is coming in all from all sources? We started


back in 2003. No external funding. So no private equity, VCs, me and my


business partner started it using half a dozen credit cards and we


have grown it to $62 million a year, revenue, still all privately owned


and it is a great success story, as well as our sites like Snaoch.com


and Just Singles, it allows newspapers and magazines to create


those sites. If you see the white label as our B to B operation, our


sites is our B to C, direct to consumer operation. It is an


industry that's been made possible, it is fair to say, by technology.


You would not be able to do what you do without technology, whether it is


smartphones or the websites. People can do it on the move and it will


match based on location and we have seen a growth in the Tinder and IPO


and the valuation that's put on these firms. It strikes me that


there is so much competition for what is a very basic service. It is


matching person A with person B, how do you stand out? Ultimately, we


have seen consolation in the market. Tinder is owned by Match Group


valued at $1 billion. Match Group own Plenty of Fish and OK Coop I had


and they are the UK and Venntro is the UK equivalent. If you are


looking for a relationship, a marred ableg we have this portfolio and


that's the approach we're taking. Just briefly, because we are being


told to end the interview at this moment, I'm being naughty. It is the


Year of the Monkey, I feel I can get away with it today. In terms of


safety, how do you guarantee that, that must be a big part of your big,


guaranteeing that? We have 140 staff and 50 people based in Windsor


moderating 24/7. 4am Christmas Day, I had people checking every profile,


photo, everything. That's a huge part of what we do, and it is one of


the reasons why people are paying for dating subscriptions on our


plait #230r78. Tform. -- our platform.


Today it's the turn of Perfumer Jo Malone.


Here's the business advice she wishes she'd been given


Never make a life changing decision on a bad day. How many times I have


done that and made a really big decision when I felt emotional and


has been the wrong decision. So make that life changing decision always


when you're on the up and you feel more balanced.


When you're building a business, it can be really tough and you need


that kind of a business muscle. When your feet leave the ground and you


have the celebration moment, enjoy it and celebrate it with the team


and the family that have helped you get there.


Jo Malone who was one of our guests on Business Live.


Some top tips there. We have got more in that series and we will


bring them to you. Let's take a quick look


at the stories making business Those reserves at $100 million pale


into insignificance compared to what China's reserves are. They are the


highest for 17 years, we have been building them up and the question is


why do we need them? There is the Brexit vote coming later this year,


likely. And a Brexit would put pressure on the pound and why is


that important? Well, we actually import more than we export. So we


have got a deficit, a current account deficit and we need to fund


that. We need to have investors confidence in the stability of the


UK economy and the value of the pound in order to do that. There is


some scary projections out there, aren't there? If the UK were to come


out of the European Union because it is an unprecedented thing. It is


such an unknown that the pound would fall like a stone in the initial


reaction? So Goldman Sachs, I think, have put out a forecast and said


that it could fall 20%. Now, of course, the foreign exchange


reserves are constantly moving and trying to take account of lots of


these potential events. And we have seen some weakness in sterling in


recent months against the dollar and against the euro from quite high


levels during last year. So some that is getting priced in. Google is


back in the spotlight. Google Island staff -- Ireland staff paid less


than our London colleagues. The controversial about Ireland they


book the majority of their sales in Ireland for tax purposes. A big


difference? Yes, that's right. London wages and salaries tend to be


higher. There is the London waiting? There is. This is a large


differential. So how do they explain that? Given that the majority of


their business is in and through Ireland? I think they are likely to


have to answer to MPs later. It is not the first time. I think it is


people trying to hold these large new companies where the tax profiles


are different, hold them to account. It is interesting because Amazon is


in the headlines. Doubling the amount of money it spends on


lobbining politicians in the US. I found this astounding. Briefly, Sue?


A lot of companies will want to get representatives of their views


through the law courts and Amazon is joining the likes of Microsoft. So


up there with the big boys in terms of its lobbying spend. Sue, as


always, thank you very much. Really nice to see you.


Good morning. The working week is not getting off to the best of


starts weather wise because of our ninth named storm of the season.


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