:00:00. > :00:08.This is Business Live from BBC News with Victoria Fritz
:00:09. > :00:15.India's finance minister makes some very ambitious promises,
:00:16. > :00:17.but will it boost the Indian economy
:00:18. > :00:38.that's our top story on Monday 29th February.
:00:39. > :00:40.It was a populist budget to boost farmers -
:00:41. > :00:44.but what was in there for businesses?
:00:45. > :00:47.It's a strategy shift that could boost India's ruling party
:00:48. > :00:49.in coming state elections, but will it disappoint investors?
:00:50. > :00:51.Also in the programme: Millions of workers in China are set
:00:52. > :00:54.to lose their jobs - a high price to pay
:00:55. > :01:01.Also we'll bring you all the very latest from the markets,
:01:02. > :01:07.Plus, would you put your money in a bank with no branches,
:01:08. > :01:11.Well, the latest breed of challenger banks,
:01:12. > :01:20.as they're known, promise to disrupt the world
:01:21. > :01:23.We ask the boss of one new app bank just how.
:01:24. > :01:26.And do tell us what you think about the stories we're covering today.
:01:27. > :01:35.To join in the debate, just use the hashtag BBCBizLive.
:01:36. > :01:38.India is enjoying its economic status.
:01:39. > :01:39.It's overtaking China to become the world's
:01:40. > :01:44.This morning, the finance minister, Arun Jaitley,
:01:45. > :01:59.It's a populist plan to boost farming aid
:02:00. > :02:04.But 2016 is a year of reckoning, let's take a look why.
:02:05. > :02:07.Mr Jaitley says his economy would grow by 7.6 percent
:02:08. > :02:10.The IMF predicts growth of 7.5% for 2016 to 2017.
:02:11. > :02:12.But some economists doubt India will achieve that.
:02:13. > :02:14.And to hit growth targets, Mr Jaitley may have
:02:15. > :02:26.deficit to 3.5% of GDP in the coming financial year.
:02:27. > :02:28.The government has struggled to get reforms on tax,
:02:29. > :02:31.labour and land acquisition past the opposition -
:02:32. > :02:33.all vital to make India more prosperous.
:02:34. > :02:38.more to create jobs for the 1 million young Indians who join
:02:39. > :03:01.Victoria was outlining some of the ambitious plans of this current
:03:02. > :03:09.government. Tell us more about what was in the budget? The government
:03:10. > :03:12.recognises that the rural economy has been under stress for two years
:03:13. > :03:15.because there has been less than sufficient rainfall during the
:03:16. > :03:20.monsoon season, and that is something they have tried to fix in
:03:21. > :03:25.this budget. One of their aims is to double farm incomes by 2020. They
:03:26. > :03:31.have also talked about spending more on infrastructure and bailing out
:03:32. > :03:33.state-owned banks. I have with me the leader of direct access BMR
:03:34. > :03:38.advisers. What did you think of the budget? I think it was a sensible
:03:39. > :03:42.budget. The finance minister reassured us on the macroeconomic
:03:43. > :03:47.stability for India and made sure we are spending right and earning
:03:48. > :03:50.right. But was there enough in that for business? The government
:03:51. > :03:54.promised to ease businesses in India. I think he made a good
:03:55. > :03:58.commitment. He talked about the bankruptcy code being brought in. He
:03:59. > :04:06.talked about the first cuts which are taking place taxes. And
:04:07. > :04:09.importantly, he is trying to bury the ghost of Vodafone and other
:04:10. > :04:13.indirect transfers that has been troubling India since the
:04:14. > :04:16.retrospective tax came in. So he is putting a framework out there to
:04:17. > :04:24.have reconciliation and closure to that issue. In India, it is a lot
:04:25. > :04:27.about making promises, but are they being delivered? Do you think there
:04:28. > :04:31.is enough in that budget to keep the economy growing at more than 7% in
:04:32. > :04:38.the next year? If you look at how much he is planning to spend on
:04:39. > :04:42.roads, railways and airports, he is also talking about recapitalisation
:04:43. > :04:47.of the banks, which is important. I think it is a sensible package,
:04:48. > :04:52.which should keep us on a growth trajectory. They have talked a lot
:04:53. > :04:55.about spending money on the infrastructure and trying to help
:04:56. > :04:59.start-ups by giving them tax incentives. That is a lot of
:05:00. > :05:04.spending. Did you hear enough about how they will make money? On the
:05:05. > :05:08.making of money, he has shied away from trying to increase tax rates,
:05:09. > :05:18.especially indirect tax rates. So there is concern about that. He has
:05:19. > :05:23.also made it clear that he has to stick to fiscal deficit targets that
:05:24. > :05:25.have been set for him. So he is confident that there will be
:05:26. > :05:30.sufficient buoyancy in the economy and sufficient headroom on tax
:05:31. > :05:34.collections. And let's not forget, here's hoping that the oil subsidy
:05:35. > :05:40.burden continues to work in his favour. That was something they had
:05:41. > :05:44.not counted on in the year past and in the year coming ahead, that if
:05:45. > :05:57.oil prices remain low, that will be a big boost for India. Thank you for
:05:58. > :05:59.now. Yogita will be tweeting and posting throughout the day.
:06:00. > :06:05.Finance ministers from the world's leading economies met at the G20
:06:06. > :06:08.Few concrete measures emerged from the meeting,
:06:09. > :06:10.but policymakers agreed that ultra-low interest rates were not
:06:11. > :06:12.enough to bring the global economy out of its slump.
:06:13. > :06:15.Industrial production in Japan has risen for the first time in three
:06:16. > :06:17.months, according to the latest government data.
:06:18. > :06:18.Manufacturing output rose 3.7% in January,
:06:19. > :06:21.but the statistics pointed to weakness in the Japanese retail
:06:22. > :06:49.We have some news out of Germany. Speaking of retail, these are retail
:06:50. > :06:54.sales figures coming out of Germany, helping grow expectations about how
:06:55. > :06:58.the economy is going to do. It is Europe's largest economy and we have
:06:59. > :07:02.seen exports slow, so there has been concern as to where the driver of
:07:03. > :07:08.growth will come from. It is something we are seeing across the
:07:09. > :07:12.Eurozone. In Germany, retail sales grew by 0.7% month on month in
:07:13. > :07:13.January. We will discuss those issues later.
:07:14. > :07:15.China's economy is back in the spotlight.
:07:16. > :07:18.It expects to lay off millions of workers in the coal and steel
:07:19. > :07:20.sectors to tackle massive industrial oversupply.
:07:21. > :07:27.This comes as the G20 finance ministers and central bankers
:07:28. > :07:29.promise to do more to revive the global economy -
:07:30. > :07:42.Let's start with what is going on with China, and announcements that
:07:43. > :07:48.we will see massive job cuts. It is a huge price to pay. It is a huge
:07:49. > :07:52.price to pay. The numbers we saw today were the first time we got
:07:53. > :07:57.specific numbers from China's government. It is reported that they
:07:58. > :08:01.will lay off around 1.8 million workers in the coal and steel
:08:02. > :08:07.sectors. There is no time frame for that, but that is as China tries to
:08:08. > :08:11.cut back on oversupply in its industrial sectors. You talked about
:08:12. > :08:16.the G20. The finance ministers met in Shanghai. They promise to do
:08:17. > :08:22.more, when it comes to China, it was not a convincing cell for investors.
:08:23. > :08:26.Today, Shanghai dropped nearly 3%. Earlier in the day, it hit a 15
:08:27. > :08:32.month low, which is saying something for Shanghai. So while we did not
:08:33. > :08:38.expect the G20 to boost markets, there was a distinct lack of any
:08:39. > :08:42.detail that might have given some confidence about future growth.
:08:43. > :08:44.Chinese bourses made a sour start to the week.
:08:45. > :08:48.The lack of any real good news from the G20 meeting means we're
:08:49. > :08:50.seeing more volatility, more investors looking to safer
:08:51. > :08:56.So the traditional safe havens of gold and the yen are stronger.
:08:57. > :09:10.This is how the week is opening up across Europe.
:09:11. > :09:12.Let's hear from Michelle Fleury aout what will be making
:09:13. > :09:17.It is a busy week ahead, even with fourth-quarter earnings
:09:18. > :09:24.The campaigns are moving into high gear as the focus
:09:25. > :09:26.of the US presidential election turns to Super Tuesday.
:09:27. > :09:29.That is the day in the election cycle when Democrats and Republicans
:09:30. > :09:33.hold the most primary votes on one day.
:09:34. > :09:34.For economists, some more traditional
:09:35. > :09:38.fare in the shape of the latest manufacturing data for February.
:09:39. > :09:42.The strong dollar, low commodity prices
:09:43. > :09:45.and weak demand continue to weigh on the sector.
:09:46. > :09:48.And still hungry for another glimpse of the health of the US economy?
:09:49. > :09:51.Well, you won't have to wait too long.
:09:52. > :09:54.The other big economic report this week is this
:09:55. > :10:04.The numbers are expected to show more hiring gains,
:10:05. > :10:07.while the pace of hourly wage growth may slow slightly.
:10:08. > :10:09.Joining us is James Hughes, Chief Market Analyst at the trading
:10:10. > :10:25.The markets are going down. Your thoughts? We are not seeing anything
:10:26. > :10:32.that positive this morning. Again, we are looking at what happened on
:10:33. > :10:35.Friday. Although there were positive numbers on Friday, with GDP readings
:10:36. > :10:41.that were OK, it is Asia yet again that is dragging us lower. We have
:10:42. > :10:49.the same story, China off heavily. And when that happens, we get that
:10:50. > :10:51.risk. Do you think there is disappointment that central bankers
:10:52. > :10:58.did not come up with some corporate idea to boost the global economy?
:10:59. > :11:02.The G20 is usually a very political thing, even when it is finance
:11:03. > :11:09.ministers meeting. It all tends to be a lot of hot air. We always build
:11:10. > :11:14.ourselves up and say we could see something, and then we are surprised
:11:15. > :11:19.when nothing happens. That then drags the markets down a bit.
:11:20. > :11:23.Speaking of more concrete things, we have data on the Eurozone coming out
:11:24. > :11:28.in an hour. How important will that be as a signal for stimulus measures
:11:29. > :11:31.we might see next month's the inflation figure is always key,
:11:32. > :11:37.especially for the Eurozone, because we have all these measures being put
:11:38. > :11:43.in by Mario Draghi which are not showing any signs of life. We want
:11:44. > :11:46.to see growth moving back to positives. What is in place at the
:11:47. > :11:50.moment is not working, so it looks like we will have to wait for yet
:11:51. > :11:54.another meeting to pile more stimulus into the economy to see if
:11:55. > :11:57.it works. James, we will see you later.
:11:58. > :11:59.Still to come...Appy banking - managing your money
:12:00. > :12:07.We ask the boss of a branchless-bank and ask is the technology trusted
:12:08. > :12:10.enough to ditch the good old bank branch?
:12:11. > :12:18.You're with Business Live from BBC News.
:12:19. > :12:21.Let's look at a story that is ringing alarm bells this morning.
:12:22. > :12:25.Almost a million jobs could be lost in Britain's retail sector by 2025.
:12:26. > :12:29.Millions of us are buying online and some are steering clear of high
:12:30. > :12:32.streets and that will have a major impact on retail jobs,
:12:33. > :12:35.according to the British Retail consortium.
:12:36. > :12:50.Tell us more about this story? There are a lot of people employed in the
:12:51. > :12:55.retail sector in the UK, around 3 million. 70% of all spending in the
:12:56. > :13:00.UK economy is on consumption. So shopping and retail really matters.
:13:01. > :13:02.The British Retail Consortium, which represents the big supermarkets and
:13:03. > :13:07.a lot of the shops we see on the British high street have put out a
:13:08. > :13:12.warning that nearly 900,000 jobs could go over the next decade if
:13:13. > :13:16.there is some sort of change to the current trend. As you were saying,
:13:17. > :13:19.people are shopping online, which means they are not going into town
:13:20. > :13:24.to buy their goods. That will affect the high street sales. But add in
:13:25. > :13:27.the national living wage, the rebranded minimum wage, introduced
:13:28. > :13:35.by Chancellor George Osborne last year. He will raise it to ?7.20 from
:13:36. > :13:38.April. By 2020, it will be ?9 per hour. A lot of people that work in
:13:39. > :13:44.the retail sector depend on the minimum wage. The PRC, the British
:13:45. > :13:49.Retail Consortium, say London is already paying at least that -- the
:13:50. > :13:53.PRC. But in more regional parts of the country, it will have a
:13:54. > :13:56.devastating impact, especially in Wales and the north of England,
:13:57. > :14:01.which depend on the national living wage. They cannot afford possibly to
:14:02. > :14:06.pay the ?9 per hour which will be the government minimum by 2020. So
:14:07. > :14:11.they say it will have a regional impact unless we look at how we do
:14:12. > :14:15.things. But the trend towards online shopping is irreversible. The
:14:16. > :14:18.question is, how do guys on the high street manage? Joke, thank you very
:14:19. > :14:25.much. This is tied in with that story. It is a Morrisons tie-up with
:14:26. > :14:29.Amazon to give it a firmer foothold in the grocery market. We know that
:14:30. > :14:35.Amazon has designs on the UK market here. It will of course be a big
:14:36. > :14:38.warning to the big online grocers. Amazon really does mean business. It
:14:39. > :14:42.will be interesting to see what happens with the share price of the
:14:43. > :14:47.supermarkets today. Their food delivery business at the moment is
:14:48. > :14:48.called Amazon Pantry. I imagine the tie-up with Morrisons will be a
:14:49. > :14:57.different offering. You're watching Business
:14:58. > :14:58.Live, our top story - Arun Jaitley, unveiled
:14:59. > :15:01.a populist budget to help He promised to spread the benefits
:15:02. > :15:05.of growth among India's But will India's wider economy
:15:06. > :15:10.and its business community benefit Now let's get the Inside Track
:15:11. > :15:21.on the banking sector. After the financial crisis,
:15:22. > :15:23.while many of the traditional lenders were busy rebuilding
:15:24. > :15:25.their businesses, a new breed of so-called "challenger banks"
:15:26. > :15:27.had started to emerge. Several of these newer start-ups
:15:28. > :15:29.rely on technology as opposed to traditional "bricks-and-mortar"
:15:30. > :15:32.branch networks. Mondo is one such business that aims
:15:33. > :15:36.to change the way the public carries Assuming the business is authorized
:15:37. > :15:43.and fully operational, it will have no branches,
:15:44. > :15:48.Mondo will be an app-based bank But similar to traditional banks,
:15:49. > :15:59.it will offer a current account So far the company has raised
:16:00. > :16:07.?7 million, that's $8.8 million. Joining me is Tom Blomfield,
:16:08. > :16:21.Chief Executive of Mondo. This is really a company in its
:16:22. > :16:29.infancy in the sense it is not authorised yet, but you do have bank
:16:30. > :16:34.cards. Tell us where you are at? We celebrated our first birthday last
:16:35. > :16:41.month. We have built our systems, going through the authorisation
:16:42. > :16:45.process, the UK regulators, one thing we wanted to do differently
:16:46. > :16:50.was involve our customers in the development of the bank. We have had
:16:51. > :16:54.life MasterCard is odd since November, we just had ?1 million
:16:55. > :16:58.spent with our cards and today we are announcing a crowdfunding
:16:59. > :17:05.campaign to let people invest in the bank. If you have the infrastructure
:17:06. > :17:09.in the traditional way, what happens if a customer has problems? They use
:17:10. > :17:13.their phone, they lose their cloud? What if they think there is fraud on
:17:14. > :17:20.their account? What if they want advice? Modern technology allows you
:17:21. > :17:24.to solve these problems seamlessly. If you lose your cloud, you can open
:17:25. > :17:30.the alp and top to freeze your cloud. If you find it down the side
:17:31. > :17:35.of the sofa, you can unfreeze it. Sometimes if you need to talk to
:17:36. > :17:41.someone, there will be a phone line. What if you lose your phone? We
:17:42. > :17:45.consider them the remote controls for our lives, but it is a rain
:17:46. > :17:48.problem if you lose them and even more so if your financial
:17:49. > :17:55.information and biking is done through one device? Worst case, you
:17:56. > :17:59.have your phone and called a stolen at once, there are emergency phone
:18:00. > :18:04.lines printed on the cloud, on the website. You can fold up and get it
:18:05. > :18:08.shut down. The mobile presents an opportunity to take a leap forward
:18:09. > :18:13.in terms of security. Every time I go abroad with my bank, by cloud
:18:14. > :18:17.gets blocked. My phone is in my pocket so they know I am in New
:18:18. > :18:23.York. What are they not more intelligent with that data? Current
:18:24. > :18:29.accounts are provided, overdraft facilities, is that it? Yes, that is
:18:30. > :18:35.it. We will not offer other products. You could not get a
:18:36. > :18:40.mortgage. We think that is for the best. We have these mixed incentives
:18:41. > :18:45.as a bike, you try to acquire customers very young and then they
:18:46. > :18:49.have the concept of customer ownership, they try to sell your
:18:50. > :18:55.product and it is rare that your bank is offering the best product.
:18:56. > :19:01.Our bank is more like an app store. You can get the best choice from
:19:02. > :19:04.across the market. You are appealing to the savvy customer, someone who
:19:05. > :19:08.is very confident about the decisions they make. If you purchase
:19:09. > :19:12.through choices at them about mortgage choices, they would be able
:19:13. > :19:18.to make that decision without handholding. We are appealing to
:19:19. > :19:22.customers who lived through their smartphones. We can present
:19:23. > :19:26.information at the relevant time, in the right context, to enable people
:19:27. > :19:31.to make their choices. Maybe there are two or three options and this
:19:32. > :19:36.might be the best one for you. Lots of the bigger banks are in the
:19:37. > :19:41.online space. They are offering this sort of service. What is it you are
:19:42. > :19:47.offering that is different? Also, tied in with that, how do you manage
:19:48. > :19:50.the data? If you are a big bag, you have the people and the
:19:51. > :19:57.infrastructure in place to deal with major breaches of security, you will
:19:58. > :20:03.not have that. I think tanks have websites and have apps, but they are
:20:04. > :20:07.a way for the banks to deliver a statement in a low-cost way. It is
:20:08. > :20:13.the same list of payments delivered on a smartphone. That is it. Really,
:20:14. > :20:18.the service they provide has not changed in 30 or 40 years. They see
:20:19. > :20:24.the mobile as a lower cost way to deliver your statement. Mobile
:20:25. > :20:29.banking is broader than that. People don't care about their bank, they
:20:30. > :20:34.care about their money. It is not just your current account, it is
:20:35. > :20:41.your discount and loyalty data. It is your entire financial life. In
:20:42. > :20:43.terms of security. We have talked about data breaches, but there is
:20:44. > :20:49.the issue of your sustainability is the company to get your physician
:20:50. > :20:56.you have got to have money on your balance sheet, you need big capital
:20:57. > :21:01.base which other banks have. The authorisation process is robust, I
:21:02. > :21:05.would say. For a good reason. Taking deposits and landing that money out
:21:06. > :21:09.is a great responsibility that we take seriously. In terms of
:21:10. > :21:15.security, data security and capital, that is something we have spent time
:21:16. > :21:22.with regulators and we will have two raise up to ?20 million to dodge the
:21:23. > :21:27.bag. We appreciate you coming in. -- launch later this year.
:21:28. > :21:34.Let's look at what is being talked about on their website. We have the
:21:35. > :21:39.German retail sales, but there is more about China and its news on the
:21:40. > :21:43.1.8 million workers likely to be laid off in the coal and steel
:21:44. > :21:48.industry come interesting given we are seeing a similar story in the
:21:49. > :21:53.UK. We are seeing a lot of expectation here that the whole
:21:54. > :22:00.European industry is going through death throes as a result of what is
:22:01. > :22:06.called the dumping of steam, Chinese steel, on the market. It is being
:22:07. > :22:10.set on the market at prices lower than it cost to produce. It shows
:22:11. > :22:14.that we are having similar problems in China as well. That contraction
:22:15. > :22:21.in the global market and the global slowdown is having a rain impact.
:22:22. > :22:26.Consumers want and the banking, this is one viewer, it is just a matter
:22:27. > :22:32.of time before all banks turn to this trend. Physical banks are
:22:33. > :22:37.becoming outdated. In a moment, we will go through the business pages.
:22:38. > :22:42.First, here is a reminder of how to stay in touch. The business live
:22:43. > :22:46.page is where you can stay ahead of the braking business news. We will
:22:47. > :22:51.keep you up-to-date with insight and analysis from the team of editors at
:22:52. > :22:54.the BBC, right around the world. We want to hear from you. Get involved
:22:55. > :23:10.on our web page. What other business stories has
:23:11. > :23:12.the media been taking James Hughes, Chief Market Analyst
:23:13. > :23:22.at the trading brokerage GKFX, Shall we start with the Wall street
:23:23. > :23:30.journal? Missed the oil storage problems. The US have come up with a
:23:31. > :23:34.solution. Empty railcars, sitting on railway tracks which will be filled
:23:35. > :23:40.up with Wayne because no one is buying it. That is the issue. We
:23:41. > :23:43.have a global glut of oil. Prices are at record lows and are not
:23:44. > :23:51.looking to go anywhere else. The issue we have in the US is where
:23:52. > :23:55.they are going to put it. The ingenious answer is these rain cars.
:23:56. > :23:59.There are worries. There is potential collisions which we do not
:24:00. > :24:06.often think about and leaky railcars and things like this. Interestingly,
:24:07. > :24:10.there are a lot of people who own railcars who are going to the big
:24:11. > :24:18.oil companies and saying, you have a lot of oil and nowhere to put it,
:24:19. > :24:24.stick it in my car. If you have a spare place to store oil, get in
:24:25. > :24:29.touch. We talked about the G2 at the meeting. Finance ministers and
:24:30. > :24:35.central bankers there. Mervyn King, former governor of the Bank of
:24:36. > :24:39.England, he is talking about his thoughts, coincidentally he has a
:24:40. > :24:46.book out, he says the Eurozone is doomed. Do you agree? I have bashed
:24:47. > :24:51.the Eurozone for quite a long time. I do not necessarily agree it is
:24:52. > :24:57.doomed, but it does not look rosy. What Mervyn King says is right. He
:24:58. > :25:01.says that the only way for a of these countries, like Greece and
:25:02. > :25:07.Cyprus, countries who really struggled to get back to solvency
:25:08. > :25:13.and growth is to leave the Eurozone and come back to it. He talks about
:25:14. > :25:16.a relegation system where you can get relegated from the Eurozone and
:25:17. > :25:21.you are financially stable again and then get promoted back into it.
:25:22. > :25:32.There are a lot of countries who still want to get into the Eurozone
:25:33. > :25:36.and use the single currency. We have been talking about the rebirth of
:25:37. > :25:43.the gas guzzler since oil prices started to sink. You go from years
:25:44. > :25:51.and years of electric cars to, because when prices are so low, we
:25:52. > :25:54.go back to regular cars. Thank you so much.
:25:55. > :25:58.There will be more business news throughout the day on the BBC Live
:25:59. > :26:01.webpage and on World Business Report.