07/03/2016 BBC Business Live


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This is business live with Victoria Fritz and Sally undock. Plans to


overhaul its state-owned industries. Live from London, that is our top


story today on Monday the 7th of March.


China's chief economic planner is promising the country will not have


a hard landing at its leaders unveiled their plans for the next


five years, but analysts are warning the detail is scanned. Also in the


programme, oil heading back towards $40 a barrel and big questions about


energy asked in the UK, specifically about EDS nuclear plans at Hinkley


Point. We will have the latest for you. And a downbeat start to the


trading week in Europe. Pretty mixed at the moment. We will talk you


through the winners and losers. Talk about the sharing economy -


and you might imagine But the idea is quickly evolving -


we'll be hearing from one start-up In the last half an hour,


it has been confirmed that the Finance director EDF has


resigned over the company's plan to build nuclear


reactors in Britain. Where do you stand


on nuclear energy? Is it the solution to our energy


security and needs, or a waste Let us know of the stories


that we're covering - Once again we start with China. And


its admission it faces a difficult battle ahead.


Those the words of Premier Li Keqiang at the nation's annual


parliamentary meeting which began on Saturday,


as he lowered China's growth target for the year.


Beijing faces tough questions over its stewardship of the world's


second largest economy and its financial markets.


The new growth target for 2016 is between 6.5-7%.


The International Monetary Fund expects just 6.3%


But the country's chief economic planner said China


China's 5-year plan included targets on energy consumption,


job creation and inflation, but analysts say details are scant.


And there was a promise to overhaul the bloated and inefficient state


sector over the next 20 years, by bringing in the private sector


to help run state-owned firms that dominate industries across banking,


John Zhu is HSBC's China economist, he's in Hong Kong.


Is China making more problems for its further down the line to meet


these growth forecasts? Growth is important and I think the government


is right to prioritise growth. Structurally China is never going to


grow at the double digits on average that you have seen in the past 30


years. On the other hand, it has to keep growth reasonably stable and


keep growth holding up, because if it doesn't, it is going to cause all


sorts of issues, such as deviation, bad debt and potentially down the


line, disruption to the labour market. How much does deflation pose


a risk to the Chinese economy? I think it is already a risk. In some


nations China is already is in deflation. Producers profits are


beginning to fall. In some ways policy should be looser, and that


means cutting interest rates and also for the government to step up


and take up some of the slack by increasing government spending and


investment, otherwise what you have is potentially a downward spiral


with lower and lower prices, lower profit and further increases in the


debt burden. That is the situation surely you would want to avoid.


Moody 's has been concerned about this and warning over what is going


on with debt. I think debt to gross domestic product is something like


245% in China. How much do debt levels like that concern you? It


does look big, but for me debt is one side of the balance sheet. It


should be balanced on the other side by the assets, which is what China


is investing in. I think on the whole, over time, China is still


investing in the right things and will make a decent return to match


the debt. What is the problem is the financial system isn't really


allocating people's savings, and China still saves more than it in


vests, into an efficient way, such that it makes the investment is


sustainable in the short run. I think the debt is a worry, but the


key solution is to raise the ratio you mentioned, to bring GDP growth


back up. We will leave it there but thank you for your time. Lots more


on that story online, do take a look. Here is some more news to take


in: The French energy giant,


EDF has confirmed it's It's reported the resignation


happened following a dispute over its plans to build


two nuclear reactors It's thought Thomas Piquemal


was concerned the ?18 billion project could put the company's


future in jeopardy. EDF is 85% owned by


the French government. Eurozone Finance ministers hold


talks on economic reforms for Greece But there's mounting concern that


Greece's third bailout, worth 86 billion euro,


is headed for crisis. The EU and the International


Monetary Fund are at loggerheads over the reform measures Athens must


adopt for all parties to sign off The credit ratings agency Moody's


has put Saudi Arabia, the United Arab Emirates,


Kuwait and Qatar on review It also cut Bahrain's sovereign


rating to junk late last week - ALTHOUGH THE PRICE OF OIL IS HEADED






$40 A BARREL. A little more news on EDF, shares down 8% in early trade


following the resignation of the chief financial officer. Hinkley


Point, we are expecting some announcement perhaps in the next few


weeks and months. Let's now concentrate on another


story coming out of Asia. We have been hearing about economic


uncertainty in China and that's just one of the problems facing property


investors in Hong Kong. Home sales there fell by a whopping


70% in February from a year earlier Nice to see you. Why such an


enormous drop last month? There are a lot of people looking at


the figures on asking that same question. Sales in January and


February said to be the lowest on record. And the lowest since 2008-


09 financial crisis. It is tempting to link this to the slowdown in


China but analysts say the reason is that is one factor, but they also


point out that people wanting to buy property in Hong Kong now face a lot


of restrictions. Very high stamp duty, they have to come up with


substantial down payment and they are worried interest rates might


increase. The government is also boosting housing supply in Hong Kong


which is pushing down prices. But the property markets are being very


closely watched everywhere as china's economy continues to slow.


The economic uncertainty is putting some people off buying. Thank you


very much. Markets across Asia had a lot to


react to today. Job numbers coming through stronger and better than


expected in the United States, and also reacting to all the news coming


out of China and about poor economic news from Hong Kong. A mixed day in


Asia. Let's have a look at how Europe is faring. Because whilst


that is going on we have markets looking ahead to the European


Central Bank meeting this week. What will they decide? And the oil price


heading higher. Commodities headed higher as well. A flat beginning to


the week for Europe. A lot on people's minds. We will discuss in


more detail in just the moment but first a look ahead to the day ahead


on Wall Street with Michelle. One of America's leading sellers of


vinyl records also sells cassette tape. At this point you might be


wondering what I'm going on about. The company has enjoyed strong sales


over the last few quarters and investors are wondering whether or


not it will be able to maintain that momentum when it reports


fourth-quarter profits late on Monday. That brings me back to those


cassette tapes, all parts of the retailer 's efforts to appeal to all


generations. The head of the Federal reserve's next policy meeting, watch


out for speeches on this mandate from the vice-chair and Governor.


Wall Street will be listening closely for clues. Do they think the


US economy is strong enough for it to continue on its path of rate


hikes? Joining us is Manji Cheto,


Africa analyst at Teneo Good morning. We are talking about


oil prices, one of the things moving some of the market, or it has been


at the start of this year. We have Brent crude flirting at $40 a barrel


mark. From where you stand as an Africa analyst, it has such crucial


impact with the African economy. As with anyone who is exporting with


what is going on with the oil price? Yes, for a lot of oil producers this


is good news. Unfortunately, I'm not sure how long we are going to look


at that 40 or if it will hit the $40 a barrel mark. If you look at the


predictions from analyst at the beginning of the year, they were


predicting about $60 per barrel. At that point I am not sure we will get


there. 40 might be the best we get this year. But a lot of oil


producers will be hoping... It is hard to see what will push up those


pressures. Even if we have a lot of people in political instability, I


cannot see what kicks it up. Commodities for now headed higher,


which is giving everyone a breather. But let's think of the other events


this week, the ECB meeting, quite big in people's thinking. And China


digestible venues and the US jobs data which came out on Friday, still


thinking about that, with the whole global economy and our thinking,


give us your thoughts? One of the interesting things this year,


economic sin bin bad, but political risk has been the biggest headline


risk for many people. That is much harder to predict. I think a lot of


the volatility we are seeing is largely driven by political


instability and policy uncertainty. Be more specific about political


instability. I should clarify that more and say political uncertainty,


it is... The ECB, it is hard to look at decisions based on numbers, it is


based on the political will and what the political will is across the


euro zone. Policy uncertainty coming out of oh pack, nobody trusts they


have got control over the oil prices any more. For me it is political


uncertainty that is driving the volatility in the markets more than


the fundamentals. Focusing specifically on the ECB. There has


been a lot of uncertainty about what measures would be announced. The


markets disappointed last time, they are expecting we will get some more


easing this week. But is it actually working? Every time it comes to the


markets people seem to be disappointed with Mario Draghi. I


think that will happen again. It doesn't matter what he does. It is


not going to be enough. From that perspective, I think people are


already expecting that. If we do get some kind of this post US, it is not


going to be enough to calm the markets. I think you could get some


calm in a day or two, after that we will have the same level of


volatility. Paul Mario Draghi, a thankless job he has at the moment.


Wouldn't want to be in his shoes factory we will see you soon, and


about five minutes time. Still to come: can you outsource your sales


staff? First more on the decision of the


finance chief at the EDF. It confirmed the director has quit over


the phone's plan to build the first nuclear power plant in the UK in


decades. Thomas Piquemal stepped down


because he feared the project could Joe Lynam has been


following the story. much do you think the governments


are to blame for EDF being in the predicament it finds itself today?


President Hollande of France and David Cameron, the Prime Minister,


met in France and reiterated that the Hinkley Point project was going


to be a pillar for future by lateral agreements between the two


countries. This is a major investment. ?18 billion in Hinkley


Point in Somerset to build a new generation of power plants. The


costs supersede the value of EDF's market capitalisation. So for EDF,


it is looking like a serious project. The resignation suggests


that if you cannot afford to build this project, are you going to


proceed and risk the company? Maybe he couldn't put his name to the


proceeding with this investment, if it was going to be a risk. They are


borrowing to pay dividends at EDF, the share price collapsed around 60%


in the last year or so and there is a question mark whether the funding


to build the project, a third of which will come from a Chinese


company, whether that is going to be forthcoming. It looks as if the


political masters decided this is going to go ahead, irrespective of


what the maths says. Joe, we're going to leave it there, thank you


very much. I'm sure that will be big news throughout the day. Shares down


8% at the moment over at EDF. Metro Bank, you are able to trade


the shares today, or at least institutions can boy and sell shares


today in Met fro Bank. Shares are up over 8.5% so the CEO was one of our


guest on Inside Track on Business Live.


Hello. You're with Business Live. China's chief economic planner is


promising the country won't is a a hard landing. The leaders unveiled


their plans for the next five years, but analysts are warning the detail


is scant. Lots of detail online. Take a look and dig in deep, but


let's get the Inside Track on one of the newest start-ups venturing into


the so-called sharing economy. Closing a deal is the cornerstone


of any successful business, but is this something


that can be outsourced? Clozer was founded last year


by Amy Bloomer and describes itself The platform connects businesses


with on-demand salespeople, reducing Given that "Clozers" are employed


on a short-term basis, companies can use the service


to meet peak-time demand. CLOZER can also be used to help


businesses expand internationally as the platform gives access


to sales teams all around the world. Ami Bloomer, chief executive


of Clozer joins us now. Thank you very much for coming in.


This is clearly a fantastic idea so long as your salespeople are good at


actually selling things. I believe you've got 83,000 of them. How can


you check they are all possibly good at doing their jobs? I think most


importantly 8% of sales close 80% of deals. There is a sub set of people


that are just extremely good salespeople. What we do is verify


these people have actually closed deals and produce that information


back to the clunt. The most verified and reviewed the closure is, the


more money they make on the platform. Can you choose if you were


a business look to go sign up to this? Can you choose the Clozer you


get? Of course. Each Clozer is rankted and reviewed. So it is


matched by your industry. You're not going to send somebody to a biotech


sales meeting who is selling finance products. It is not going to work.


In a sense, you know, it is matched, but you have to interview them. They


don't represent your business until you say, "OK, I feel really happy


with Amy." Or whoever. Zl this idea came to you after a trip to cold


beeia where you find it very difficult to sell anything? Yeah,


the genesis is five years old, when I was 25, I started my first company


on a credit card. My first client I signed over the phone and it was


Pfizer, when I signed them, I thought Pfizer are doing business


from me, but because I was selling a learning product, I was 25, all the


enterprise clients I went to, the door was closed. My first hire was a


grey haired man and he sold every daesmt when I found myself in couple


beeia, it was extremely difficult to be there as a woman who is white,


President Hollande, doesn't speak Spanish, trying to do business with


Columbian men, I spent days trying it get my deals to close, but the


cultural differences were the thing that held me back and the fact that


people buy from people and I think when we forget that in business, we


do ourselves a disservice. And all the stuff around women in business


and everything, it is you know, I'm really supporting women in business,


but there are some things we know from the platform that HR directors


buy typically from men over 40. So if you know that, send a man over


40. But your company is very much a


product of our age, isn't? You're calling it a disruptive player in


this market, but presumably, all the Clozer s that you've got on your


website are self-employed, individuals. So virtually freelance


in a sense? Freelancers, yes. How long do you think you're going to


stick around with that model? Do they want to stay in that place as


an individual or perhaps they will want to go and sort of start a


career path, corporately where they're going to get the fringes and


benefits that you get when you're not self-employed? The advantage to


being a Clozer rather than being in an institution, the market sets your


rate. If you're closing a lot of table, you're the table earning $150


an hour, now, now your employer can't give you. The flexibility


really attracts Clozer s because I could go to Thailand and work on


deals there if I had a certain experience. People want a flexy, job


that they can do and get paid for it at market rate.


So much more to discuss. As always, Amy, thank you so much. Really


interesting and this business is just only about five months old so


we will keep an eye on it and I'm sure we will have you back.


The man who is said to have invented e-mails,


He came up with the idea of sending electronic messages in 1971,


and he's been credited for introducing the @ symbol as part


Our North America Technology Reporter, Dave Lee explains


Ray Tomlinson's role in developing the revolutionary technology.


Ray Tomlinson was working on a piece of software called ARPANET,


which was one of the early foundations of the Internet.


What he was working on was the ability to send messages


He did this, in the first instance, from a computer that was ten-feet


So the first e-mail was fairly anti-climactic in a way.


He says he has forgotten what was exactly in that e-mail.


He couldn't even tell us that, unfortunately, but certainly


a momentous thing in the history of the Internet and the history


of how we communicate with each other.


There are now 100 billion e-mails sent every day,


so it all started from that one e-mail to a computer ten feet away


The lovely Dave Lee who you can follow online. He is wuven our


technology team in San Fran. We asked you whether you thought


nuclear energy was worth the time, the energy and the money? Some of


you got in touch, we have got a viewer saying, "Well, Canada has


almost 40% of its energy on nuclear? Why not? It is positive." Another


viewer says, "Nuclear is the way backward. Renewable energy is more


sustainable, beneficial and minimises impact. He says the gains


are worth the costs. Thank you for sending in your thoughts. Stay in


touch with us. Manji Cheto, Africa analyst


at Teneo Intelligence is joining us The billionaire businessman who has


been sentenced to death. This is coming off the back of people


expecting Iran to come back into the markets. It is a reflection of the


fact that the Iranians want to say they're dealing with the operational


issues and corruption tends to be a big issue in oil producing States.


Clearly, he is not Iranian. He is a western businessman, just fill us


in. I haven't seen the detail on this? He is British Iranian. So I


think, this is clearly, the Iranians trying to send a message, if your


people want to come into our country, if they want to operate we


expect them to still honour an Islamic Republic and whether or not


people will feel can have didn't about this and this is really


tackling corruption, you know, I think a lot of people will kind of


sit on the fence on that one. We have got one more that we are going


to try and do quickly this. Is in the Wall Street Journal. They have


this population, this demographic timebomb that we are seeing across


the developed world? For me, it is interesting. I cover markets where


it is the opposite. We actually have an incredibly large youth population


in Africa. I think, you know, unfortunately the pensions issue in


Europe, nobody ever says we need to tackle this right now and


unfortunately, I just think, you know, politicians won't allow this


to get to the point where we can't actually solve it anymore. Thank


you. That's often the case. The tin can kicked down the road. You're


with Business Live. We will see you tomorrow.


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