17/03/2016 BBC Business Live


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Hello this is business live, they are calling it the perfect storm,


Lulu returns to government in Brazil.


that's our top story on Thursday 17th March


We'll be live in Sao Paolo to get the very latest on the developments


in South America's largest economy - as fresh anti-Lulu protests erupt


The Brazilian real plunged and share markets dived on the news.


Storm clouds are gathering again over the global economic horizon -


that's the warning coming from the US central Bank,


add that to worries over a potential Trump presidency and a lacklustre UK


economy - should we batten down the hatches!


And we are an hour into the European trading day -


the US dollar is weak - oil prices are on the rise


We'll make sense of the latest moves.


As we do more and more work on the move and online -


we meet the boss of tech security firm Druva that says it can keep


And as the cost of 3D printing falls to a new low -


it's got all sorts of practical uses.


We want to know - what would you 3d print?


We start in Brazil - where President Dilma Rousseff


is battling to save her government amid a deepening political


Late Wednesday she confirmed her predecessor - former president


Luiz Inacio Lula da Silva - will be returning to government.


Critics say it's a move to shield him from corruption charges.


Top of the list of problems -


a huge corruption scandal involving state-owned oil giant Petrobras,


President Rousseff is facing impeachment over the scandal.


The economy shrank 3 point 8 percent last year -


the biggest slump in a quarter of a century.


At the same time consumer prices are soaring -


And no surprise then that many Brazilian families are struggling


with high levels of household debt - and rising interest rates have piled


News of Lula's return caused sharp falls in Brazil's currency and stock


markets, as investors fear he could raise public spending


Daneil Gallas, our South America Business Correspondent joins us now


Tensions really high where you are, not least, just explain this for us,


a foam core that took place we think at some point between Lula and


Elmer, just explain this for us. The crucial question, one of the many


questions, the crucial question in this whole case, is whether Lula is


being brought in to help out the government, get out of this mess, or


is he just doing this to save himself in order to get some court


privileges. Last night, a foam core that was tapped by the police, and


it was revealed by a judge, it was saying, it was showing, that


President Dilma Rousseff was talking about President Lula about a


document, from before he became a minister. The president says that


the document does not reveal anything but it was very explosive


for everyone here, for the judge and for everyone that was some sort of


evidence that Lula was doing this to save himself. We saw some protests,


there was rioting Brazil and they were very spontaneous, people coming


out of the streets at around about seven o'clock at night and things


are very tense and today, Lula is going to be formalised as a


minister. All of this means more uncertainty and unpredictability and


it strikes me that it is the last thing that result need right now?


Brazil is going through its worst economic crisis in the last 25


years. It is one of the worst political crisis, the markets are


very volatile right now, up until yesterday there was a lot of talk


that was would take a sharp turn to the left, but yesterday, President


Dilma Rousseff came out and said that the central bank is not going


anywhere, the finance minister will stay where he is, and that the


economy is not doing any major shifts from now on. She will want to


approve a change in tax. First of all, you have to take care of the


impeachment process, in about 45 days from now, she could actually be


suspended from office if she's not sex full in -- if she's not


successful in that. We saw those protests in the street, it seems


that will not change? Yes they are very organised protests, of people


who say, now we are seeing protests that are quite spontaneous and


people coming out because they seem to be very angry especially with


Lula and Dilma Rousseff. That is the tension that they will have too


diffused right now and that is the popularity problem that they had to


struggle with right now. Australia's unemployment rate fell


unexpectedly last month according But - the numbers show a big


DECREASE in the pool of available workers rather than a significant


creation of new jobs. The Bank of England is expected


to leave interest rates unchanged at a record low of 0.5 per cent


when it meets later. Forecasts suggest there won't now be


a rate rise until early 2017, which would mean eight years


of record-low borrowing costs. Analysts will be watching to see


if anyone on the committee will actually vote


for a CUT in rates. Chinese telecoms giant ZTE


is postponing the release of its annual results to assess


the impact of new US export The US Commerce Department made


the move after ZTE and its units allegedly violated its sanctions


on Iran. Let us take you to the business live


page, a lot of budget reaction in the UK with some corporate news


around the world. You will know that the airline has been set by all


sorts of industrial relations problems that have hampered its


efforts for a turnaround plan, it has told us that strong annual


results for last year, thanks to what it says are lower fuel prices


and more customers. All of that as we said despite the big problems


related to industrial action. Also we have got some bosses on the move,


surround rue witty, who has been running GlaxoSmithKline, he will


leave in March 2000 17. That is a big story comedies quite a


significant player in the significant player in the


pharmaceuticals industry. And also the boss of Rio Tinto, he is


retiring this year. And this man is the new man who will take the top


job. He will become the boss of Rio Tinto, he is currently in charge of


their division for copper and coal. Glaxo looking for a new boss so


sending your CV 's. The US central bank concluded


its meeting on Wednesday and Janet Yellen had no


surprises for investors, But she did reflect concern


about the global economy and its impact on the US,


the dollar and inflation, so only two rate increases


are likely this year. How did markets react


to this in Asia? Sharanjit Leyl is in


our Asia Business Hub. Pretty much every Asian market is


higher with the exception of Japan, and then Nick K which has closed


lower. As investors took in the Federal reserve decision to keep


rates still, export rates were sold off on the stronger yen. The Federal


reserve staying back, the projection for interest rate hikes, has meant


that risk appetite has returned for many investors, most Asian markets


taking their cue from the Wall Street, S 500 closing at its


highest level following that fairly cautious message from the US central


bank. Of course we have got global growth concerns about China,


grappling through much of this year and one of the reasons why they may


have influenced the Fed decision. Commodity prices are up and the


reason why is that investors are not likely to be lured away by the


appeal of higher US interest rates. They still seem fairly good bets for


investors. STUDIO: Thank you very much indeed. For most of the session


in Tokyo, it was in positive territory, Hong Kong up strongly.


That is the night before, the main markets in the States, closing


really strongly. Let us look at Europe to see how it is going. We


have got many energy stocks doing well because of the price of oil,


Brent crude, across-the-board in Europe we are seeing strong gains,


after a mixed close in Europe on Wednesday. For a look ahead to what


we can expect on Wall Street here is Michelle flurry. US investors going


to Thursday enjoying some extra lift courtesy of the Fed, the Wednesday


monetary policy committee now says that they expect to make fewer hike


rates than they previously did. Stock investors like that news a


lot, driving the S 500 to its highest level since 2016, attention


now turns to economic data out on Thursday, the weekly estimate of how


many people make their first game for unemployment benefit is the


market 's best running tally of how the job market is faring. The


initial claims release as it is also known is expected to show a rise


from the past week but it is still around its lowest level for five


months. That plus the Philadelphia Fed's survey of business conditions


in one of the biggest industrial regions, the United States will give


investors plenty to think about. Jane Foley is with us, she is the


senior currency strategist, a quick word on the Fed, because not


changing rates, as always, it was what Janet Yellen said? She seemed


to be very cautious, partly because of the global economy, she mentioned


the global headwinds. The US economy has been closed to most other


economy so it is significant. Also, the more cautious members of the


committee, certainly seem to be dominating. One member abstained,


she wanted an immediate rate hike, she abstained, but generally it is


the doves that got to the board. It is all about caution, it is the tone


of the Federal reserve and it is definitely the tone of George


Osborne, his budget statement in the UK on Wednesday, and interestingly,


the economic intelligence unit is rating some of the top risks to the


global economy and it has got Donald Trump among the top ten? Economists


are quite concerned, because with respect to Trump, it is difficult to


see what his policies are, but he has come out with some comments


which suggest that he's very protectionist and that is something


that can slow world growth. Trump on protectionism is a big worry for


economists but also because he has come out and has said something that


could be deemed as a war crime, that you had to go to the families of


terrorists. On the back of that, you could see resignations from some


senior Army officials in the US had a lot of uncertainty about what a


Trump presidency could bring. You will be back with us in just a few


minutes but thank you. Talking of risks, staying safe


online, we will meet the boss of the tech security firm, it says it can


keep information safe from hackers. You are watching business News live,


stay with us. First more reaction to that budget speech yesterday from


the Chancellor George Osborne, the aid budget, some fairly downbeat


forecasts. Emma Jones is founder of small


business support group Enterprise Do you welcome what you've heard


from the Chancellor? Absolutely, this was a fantastic


strong business budget for small businesses, business rates being


abolished, corporate tax rates coming down. They are a joy seeing


this morning. Talk us through changes to taxes and rates because


it has been a big bugbear for small firms who are really struggling to


deal with competition from their larger rivals, this will help small


firms we believe that the cost of larger firms? I'm not quite sure it


is at the cost of larger firms but it is great cost to the high Street,


600,000 fans will no longer had to pay business rates which is


incredible, a lot of retailers happy. But this thing around big


corporate, big corporate and small businesses working together is ready


important, I think that big corporate is paying their tax, and


the Chancellor is making sure that the small ones are paying less. Give


us a sense of how big a part of the economy, it


Small businesses power the economy and they are entrepreneurial and


yesterday was a celebration of small business. The Chancellor was showing


he took small businesses seriously. One easy target we thought would be


motorists. Global oil prices are down, but the Chancellor chose to


keep fuel duty steady. That is good for business like transport and for


staff who need vehicles. Absolutely. Whether you are an eBay trader,


whether you are on the high Street, whether you rent out your house,


there were tax allowances for that. The economy is made up by small


businesses and the Chancellor made sure they got the breaks they need


to keep on growing. Emma Jones. The founder of the Moneysupermarket is


finally selling the rest of his shares. ?120 million.


You're watching Business Live, our top story: President Dilma Rousseff


is battling to save her government amid a deepening political


And news that her predecessor, former president Luiz Inacio Lula da


Silva, will be returning to government.


That's prompted protests, the Brazilian real plunging


Now, technology means we can do more and more on the move,


But how safe is the data and work we access via smartphones,


He makes software that helps companies protect their data,


especially for workers who aren't in the office.


The company's Chief Executive, is Jaspreet Singh,


He moved to Germany to study computer science as part


And it was a $1,000 loan from his father that helped him


start up his own firm selling Indian food to students.


But after a spell at tech firm Veritas, he founded Druva in 2008.


It has its HQ in California and has 3,500 customers around the world.


Jaspreet Singh, the CEO of Druva joins us in the studio now.


Nice to see you. Talk us through how this works. It is about protecting


people on the move and we know people are working elsewhere, not


just in the office, and security for all firms is a big issue.


Absolutely. For example, what happens if the customer has data


everywhere from tablets, cloud services. We help to understand data


on all these devices, collect it and preserve it for as long as you want.


For discovery and compliance and all those different reasons. The


businesses who are more concerned about learning more about their data


from a breach perspective, from a discovery perspective, to understand


and collect an aggregate data for security reasons going forward.


Explain where you saw the gap in the market in terms of provision of this


kind of security. You were working at Veritas and because you were an


entrepreneur you needed to move on and I heard you got bored. You talk


about managing data at the edge, what ever the edge is, and that is


where your business model started. Absolutely. When I left the job I


was trying to solve surge and understand what to do next and we


saw this big kind of mobility or cloud coming in and 40% data would


be an egg. The legacy approach of managing it and predicting it and


covering your risk around data would not go the way of the past, building


a data centre. You have to look at where the data is and protect it


there and then. So IBM, a big data centre, does not currently covered


that? Yes, they do, they cover in a legacy way. They manage the


information back in the data centre. You have to think about hybrid and


electric cars and mobility and risk. It is a completely different


process. Let's talk about India. Up until now we have known it for


outsourcing technology and services. You are suggesting now there is a


home-grown industry in IT and technology and new innovation coming


from India. How has that changed? Quite a bit. Traditionally the whole


world would be a credit cost model. When I was in Veritas, the laptop I


worked on, the mobile phone I had, was very different from my US


counterpart. In time the bridge blended. We have cloud, the same


devices and the same servers. So the gap between what ever a person has


in the world is bridging. There is a global trend in entrepreneurship. In


India, something we cover a lot, there is a push to get business and


investment in India, and yet for your company you had to move to


California to progress. It was not happening from where you were near


Mumbai. It is about where the talent is. You have got to find the best


talent. For a large enterprise buying from a start-up is not just


about technology, it is about the whole business model, selling it and


building it. The talent pool was all in the Bay area and we moved there


to build a large company. It has been great to have you on the


programme. and jewellery industry -


Baselworld - gets under way It's a good barometer


of the global economy. So how is the luxury watch trade


coping with these uncertain times? A few things say new wealth as


effectively as a luxury watch. Switzerland exports $22 billion a


year. But sales are on the slide. Over the past year they fell 3%


worldwide. In China, a key market for the new rich, they fell by 23%.


The economic slowdown and stock market crashes are partly to blame,


so too is the government's crackdown on luxury gift giving. Smart watches


have come through as a serious competitor. Last year 8.1 million of


them were sold, compared to 7.9 million Swiss watches. Nowadays


there is a glut of luxury watches on the market. Independent dealers on


the Internet are selling them to clear at discounts of up to 75%.


Some watchmakers are trying to drive up sales by bringing out a cheaper


lines. Others are having to cut costs. Cartier is cutting 350 jobs


at its headquarters. We are looking at various stories


and this one is interesting. 3-D printers are cheaper and they are


taking on toys. $400 for a printer. The reviewers said the first time he


reviewed it they cost about $1400. He has been spending the last few


weeks reviewing them and he says they are not perfect. That is a hard


job. You cannot print something like a Lego brick, they are not that


precise, but $400 is cheap. But the big question is, how much is the


plastic that feeds them? He says it is $24 a kilogram. That is expensive


if you are on our pocket money budget. But it means a 3-D printer


can be in the range of many families. Pocket money budget is the


key because the toy makers are thinking this will be the next big


thing. Your kid could design a toy. In the


past you used a washing-up bottle liquid. Now you have this creativity


you could never have before. Yes, he said it is about having an app that


let's you design something and then let's you print it and have it. You


have sent as lots of suggestions including a mini then.


Lots of comments coming in. Some of you are very political, you want


things like new government, new leaders, new president. A few of you


are suggesting a radiator key because it is something you can


never find. Toys for your kids. You might want to create limbs for


people with disabilities. I think that has already been developed by


certain manufacturers. The Guardian looks at the budget


like all the UK press completely across-the-board and they are


talking about ?56 billion black hole. Growth has been revised down


by 0.3% over each of the five years. That is significant. The Federal


reserve also revised down growth and that means money coming in will not


be as much as the Chancellor had expected. Nice to see you as always.


Thank you for your contributions and your company. We will see you


tomorrow. Goodbye. It might have started a bit murky


and great, but increasing amount of sunshine are developing out there at


the moment and we will settle into a fine and sunny afternoon for the


majority. There will


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