:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson
:00:08. > :00:16.More leaked documents from Panama show how close relatives of some
:00:17. > :00:18.of China's leaders, including the president,
:00:19. > :00:37.Live from London, that's our top story on Tuesday 5th April.
:00:38. > :00:40.As tax authorities around the world promise tough action after the leak
:00:41. > :00:46.of millions of documents from a tax haven, we reveal how close relatives
:00:47. > :00:54.of senior Chinese politicians have been caught up in the scandal.
:00:55. > :01:14.India cuts interest rates to their lowest level in five years,
:01:15. > :01:15.as the country's fight against inflation seems
:01:16. > :01:19.And this is how markets across Europe have opened this
:01:20. > :01:21.morning - we'll look at what's moving the numbers.
:01:22. > :01:24.And how do you know what you buy in the shops is safe,
:01:25. > :01:28.This man has the answer - he's the head of the Consumer Goods
:01:29. > :01:30.Forum, that focuses on keeping consumers safe and making
:01:31. > :01:35.And as always we want to hear from you about any of the stories
:01:36. > :01:41.Get in touch in the usual way - #BBCBizLive.
:01:42. > :01:46.Tax authorities around the world have promised tough action
:01:47. > :01:49.after the leak of millions of documents from the Panamanian law
:01:50. > :01:55.They show how the world's rich and powerful hide their wealth
:01:56. > :02:01.They also show how leading regime figures in Syria and north Korea
:02:02. > :02:03.were able to keep their companies trading, despite being blacklisted
:02:04. > :02:08.The papers make uncomfortable reading for a number of current
:02:09. > :02:14.Close relatives of senior Chinese political leaders -
:02:15. > :02:17.including the President - are among those found to have links
:02:18. > :02:22.Our correspondent Celia Hatton has more details.
:02:23. > :02:26.Ask the wrong question, this is what happens.
:02:27. > :02:28.Chinese citizens who want their Communist leaders
:02:29. > :02:32.to list their assets are rounded up and put in prison.
:02:33. > :02:42.This is the group of men who rule China.
:02:43. > :02:45.They refuse to disclose their wealth, but they say
:02:46. > :02:47.they want to eliminate corruption from the Communist Party,
:02:48. > :02:50.punishing 300,000 officials last year alone.
:02:51. > :02:58.That makes today's news very uncomfortable for Chinese President
:02:59. > :03:02.The relatives of seven current and former Chinese leaders
:03:03. > :03:04.were found to have links to offshore companies,
:03:05. > :03:12.Of the seven named, these three are the most important -
:03:13. > :03:13.President Xi Jinping and two senior leaders.
:03:14. > :03:16.All three men have in-laws who were listed as directors
:03:17. > :03:19.or shareholders in offshore companies.
:03:20. > :03:25.It's not illegal for Chinese citizens to invest overseas,
:03:26. > :03:29.but the Communist Party bans relatives from profiting
:03:30. > :03:30.from their political connections, so this
:03:31. > :03:34.So far, the government is doing what it can to control the story
:03:35. > :03:43.When I enter "Panama papers" into the search engine,
:03:44. > :03:46.this is what I get, a message telling me the results violate
:03:47. > :04:02.There is growing awareness in China of a large wealth gap
:04:03. > :04:05.between the vast majority of China's ordinary people and the aristocracy.
:04:06. > :04:16.This will translate into resentment against the Party leadership
:04:17. > :04:18.and also more entrenched doubts about whether this one-party
:04:19. > :04:21.authoritarian rule is suitable for China.
:04:22. > :04:24.Slowly, we're learning more and more about how the relatives
:04:25. > :04:25.of China's leadership store their money overseas.
:04:26. > :04:28.Despite the best efforts of the Communist Party,
:04:29. > :04:31.an unexpected leak of files from halfway around the world
:04:32. > :04:39.in Panama is shedding light on China's most secretive families.
:04:40. > :04:42.And there's much more on the revelations in those
:04:43. > :04:48.documents - it's all on our website.
:04:49. > :04:55.A potential buyer for Tata Steel in the UK says he could take over
:04:56. > :05:00.the ailing business without making massive job losses.
:05:01. > :05:02.Sanjeev Gupta, head of Liberty Group, says he's had
:05:03. > :05:04.'very encouraging' talks with the Government.
:05:05. > :05:06.He thinks the plant at Port Talbot could be more efficient
:05:07. > :05:15.by replacing its large, expensive blast furnaces
:05:16. > :05:18.with cheaper, smaller arc furnaces powered by electricity.
:05:19. > :05:21.One of the world's largest aerospace firms has written to its 15,000 UK
:05:22. > :05:24.employees warning about the risks of voting to leave the European Union.
:05:25. > :05:28.In a letter to staff, Airbus says it makes "good economic
:05:29. > :05:32.sense" for the UK to stay in the EU due to its ability to trade freely
:05:33. > :05:40.While it would not relocate elsewhere in the event of EU exit,
:05:41. > :05:44.the company said it might reduce its investment.
:05:45. > :05:47.The price of oil has been volatile over the past 24 hours -
:05:48. > :05:52.amid fears over the glut in global output.
:05:53. > :05:55.Oil producers including Saudi Arabia and Russia are due
:05:56. > :05:57.to meet in Doha later this month to discuss a freeze
:05:58. > :06:06.But Iran says it won't take part in the meeting
:06:07. > :06:08.and will keep increasing exports until they reach pre-sanction
:06:09. > :06:18.We will talk more about oil, the price and what it is doing, it has
:06:19. > :06:25.been volatile, and certainly moving the market. You think of the Panama
:06:26. > :06:35.papers, a can of works, -- a can of worms, and thinking about Iceland.
:06:36. > :06:39.The Icelandic PM remains defiant, this is about 10,000 people in wreck
:06:40. > :06:47.the capital, gathering outside the parliament, 10,000 people is not too
:06:48. > :06:52.bad in a country with a population of 323,000! They are seeking the
:06:53. > :06:54.Prime Minister's resignation and the opposition party calling for a vote
:06:55. > :07:00.of no confidence because in the Panama papers there were details of
:07:01. > :07:04.the Prime Minister's family was macro financial affairs.
:07:05. > :07:09.As you can see at the bottom, he says he will not resign over this.
:07:10. > :07:14.Many world leaders seemingly have links to those offshore accounts.
:07:15. > :07:20.Can you say his name? You go for it!
:07:21. > :07:24.Sigmundur Gunnlaugsson, there we go! Fluent!
:07:25. > :07:26.India's central bank has cut interest rates by 25 basis
:07:27. > :07:32.It was widely expected - the first cut since September
:07:33. > :07:35.to bring rates to their lowest level in more than five years.
:07:36. > :07:40.Yogita Limaye is following this story for us from Mumbai.
:07:41. > :07:52.Good to see you. No surprise, is the move because we have seen inflation
:07:53. > :07:55.at the fastest-growing economy in the world, but it has dropped a
:07:56. > :07:59.little bit? Yes, over February it dropped quite
:08:00. > :08:04.sharply said there were expectations that perhaps the central bank might
:08:05. > :08:08.make a bigger rate cut, 25 basis points was expected. The bosses of a
:08:09. > :08:13.Private bank I spoke to a few days ago said there was a case to be made
:08:14. > :08:17.for a reduction of three times that much, 75 basis points. A lot of
:08:18. > :08:21.people not very excited by this move, the stock market certainly not
:08:22. > :08:25.excited, they have been in the red and bank stocks are taking a hit at
:08:26. > :08:30.this point but the governor, in his statement, has said that their
:08:31. > :08:34.stance will remain accommodating in the months to come, so there are
:08:35. > :08:39.expectations that if inflation remained around the 5% figure,
:08:40. > :08:42.convened -- consumer inflation, we might the rate cuts in the months
:08:43. > :08:49.ahead, too. Thanks very much.
:08:50. > :08:54.A quick look at the numbers, this is what Asia did overnight, despite the
:08:55. > :08:57.move by the Australian central bank to keep rates on hold and also the
:08:58. > :09:03.Indian central bank to cut the rate to the lowest level in five years. A
:09:04. > :09:07.quick look at what Europe is doing, the service sector will be in the
:09:08. > :09:11.spotlight today. In the UK, some suggestions that the debate over
:09:12. > :09:14.Brexit and the potential exit of the UK from the European Union could
:09:15. > :09:17.start affecting service sector figures over the course of the
:09:18. > :09:21.coming months ahead of the referendum taking place in June, so
:09:22. > :09:26.we will get a snapshot of what is happening there, and a few of around
:09:27. > :09:31.Europe, but that is currently the state of play, the FTSE 100 down by
:09:32. > :09:37.1%, although prices proving volatile, and that, as we have said
:09:38. > :09:38.in the past, really does spook the equity markets.
:09:39. > :09:44.Nicely done, nice little Segway there.
:09:45. > :09:54.I joined by a familiar face! We are going to talk about oil. It is
:09:55. > :09:57.certainly driving things lower in Asia, so volatile. Everybody is
:09:58. > :10:03.looking to the meeting later this month in Gauhar, in tata. Not a lot
:10:04. > :10:10.of hope, though? No, what is interesting is the equity markets
:10:11. > :10:13.moving, you would see lower oil prices in the past is good news for
:10:14. > :10:17.equity markets because consumers have more pounds in their pocket but
:10:18. > :10:22.now it is seen as a sign of a weakened global economy, and equity
:10:23. > :10:27.markets and the oil price are moving in lockstep. There is a showdown
:10:28. > :10:31.between Saudi and around, and if they do not come to an agreement we
:10:32. > :10:37.will not see this glut of oil disappear any time soon -- Saudi and
:10:38. > :10:41.Irani. Iran says it is not going to go to the meeting, and in some ways
:10:42. > :10:45.you cannot blame them, they have been blocked with sanctions in the
:10:46. > :10:49.past and others have stolen their market share. Iran says it wants to
:10:50. > :10:54.keep producing to get to its pre-sanction level of 4 million
:10:55. > :10:57.barrels per day, and there is just more of the black stuff, and I
:10:58. > :11:02.cannot see a light at the end of the tunnel for oil gumming up? And at
:11:03. > :11:06.the other end of the spectrum there is Russia, still pumping a lot of
:11:07. > :11:11.oil despite President Putin's promise that Russia will scale back
:11:12. > :11:18.on pumping oil, so I continued glut of oil. Also interesting, we have
:11:19. > :11:21.heard talk from Saudi Arabia about setting up this sovereign wealth
:11:22. > :11:23.fund with trillions of dollars, preparing for life after oil, so it
:11:24. > :11:30.seems the message is getting through because we have heard until now that
:11:31. > :11:32.Saudi Arabia is blind to the criticism and will try to keep up
:11:33. > :11:37.production regardless, despite debate about a cap. The message is
:11:38. > :11:41.getting through that countries which have traditionally made their money
:11:42. > :11:44.from oil need to prepare for the future? Absolutely, they need to
:11:45. > :11:53.diversify their revenue resources, and we have seen this in the
:11:54. > :11:55.markets, a lot of Sobran Wealth funds sell assets to plug the gap
:11:56. > :11:59.left by the falling oil price that has created holiday but --
:12:00. > :12:03.volatility. Where did you think they will spend that money? We have seen
:12:04. > :12:07.in the past it is spent on hotels and prime real estate in places like
:12:08. > :12:13.London, we have no idea yet where they will be spending this?
:12:14. > :12:17.Innovation, consumer, different sectors where they could spend the
:12:18. > :12:20.money, but it remains to be seen. I know you will talk us through the
:12:21. > :12:23.papers later, but for now, thank you.
:12:24. > :12:27.Saudi is also introducing austerity. For the first time ever.
:12:28. > :12:30.Yes, to stave off bankruptcy. Who Yes, to stave off bankruptcy. Who
:12:31. > :12:33.would have thought you would hear that?
:12:34. > :12:35.Move over Apple and Samsung -
:12:36. > :12:37.the world's third-largest mobile phone company,
:12:38. > :12:40.Huawei, has big plans for the smartphone in your pocket.
:12:41. > :12:44.It's got a new handset this week, but can it beat the 33% rise
:12:45. > :12:54.You're with Business Live from BBC News.
:12:55. > :13:11.The Business Secretary Sajid Javid is due to meet Sanjeev Gupta,
:13:12. > :13:15.a potential buyer of the Port Talbot steelworks,
:13:16. > :13:17.today before flying to India this evening for talks
:13:18. > :13:21.Meanwhile, David Cameron is likely to face renewed calls to nationalise
:13:22. > :13:24.the South Wales plant during talks with Wales' First Minister,
:13:25. > :13:26.Our correspondent, Andy Moore, has this report.
:13:27. > :13:29.Last week, he went to Port Talbot to tell workers he would do
:13:30. > :13:34.Later today, the Business Secretary will fly to Mumbai to meet Tata
:13:35. > :13:36.executives to discuss their timetable for the sale
:13:37. > :13:40.It's a meeting many steelworkers say should have happened some time ago.
:13:41. > :13:42.Last night, Mr Javid's deputy was feeling optimistic.
:13:43. > :13:45.A long way to go yet, but we are making good progress.
:13:46. > :13:47.Could this man be the saviour of the British steel industry?
:13:48. > :13:49.One Indian company wants to offload the company -
:13:50. > :13:51.it could be another Indian-born tycoon, Sanjeev Gupta,
:13:52. > :13:58.But he would want to run a very different type of business.
:13:59. > :14:00.The old blast furnace would be closed down and replaced
:14:01. > :14:12.Our idea is that we will look to transition from blast furnaces
:14:13. > :14:18.to arc furnaces, from imported raw material to domestically-available
:14:19. > :14:22.scrap, and from making carbon steel to what we call green steel,
:14:23. > :14:31.melting recycling scrap using renewable energy.
:14:32. > :14:34.His company Liberty has already saved this steelworks in Newport.
:14:35. > :14:36.If he were to take over Tata's other operation,
:14:37. > :14:39.he would hope to keep most of the workplace.
:14:40. > :14:41.There will be a series of meetings today involving
:14:42. > :14:43.the British Government, Welsh Government and the unions.
:14:44. > :14:53.Everybody is hoping a deal can be done to save jobs.
:14:54. > :15:01.And that story is on the Business Live page, a call to save those jobs
:15:02. > :15:04.in the UK steel industry. Some criticism that any bail-out would be
:15:05. > :15:08.throwing good money after bad and it is massive reform of the industry
:15:09. > :15:11.that is needed now not only in terms of modernising equipment but also
:15:12. > :15:14.changing processes. I did not know about the difference
:15:15. > :15:20.between the furnaces. I only learned that today, between
:15:21. > :15:28.the blast furnaces, and... They cannot be turned off?
:15:29. > :15:35.And the Ark furnaces, which are electrically powered.
:15:36. > :15:39.Our top story: As tax authorities around the globe promise action
:15:40. > :15:42.following the leak of millions of documents from the Panamanian law
:15:43. > :15:44.firm Mossack Fonseca, we reveal how close relatives
:15:45. > :15:52.of senior Chinese political leaders have been caught up in the scandal.
:15:53. > :15:57.Now, when you're out shopping, do you know, where the products
:15:58. > :16:00.you're buying have come from, who made them or whether they're
:16:01. > :16:06.Well, the Consumer Goods Forum tries to tackle issues like these,
:16:07. > :16:11.by trying to implement a global quality level to safeguard human
:16:12. > :16:12.rights and to maintain safety standards.
:16:13. > :16:14.The group represents over 400 retailers and manufacturers
:16:15. > :16:18.and operates in 70 countries around the world.
:16:19. > :16:21.Its aim is to help shoppers and consumers, focusing on food
:16:22. > :16:22.safety, ethical manufacturing, and responsible use
:16:23. > :16:26.Peter Freedman is the Managing Director of the Consumer Goods Forum
:16:27. > :16:37.Peter nice to see you. Welcome to Business Live. We touched a little
:16:38. > :16:42.bit there on what it is you do. Explain at a practical level, how
:16:43. > :16:47.does it work? How does the forum work? We bring together all these
:16:48. > :16:51.companies, multinationals and quite small regional companies and we
:16:52. > :16:56.focus basically on what we call positive change. So that's things
:16:57. > :17:00.that consumers notice, you as a shopper, you as a consumer of a
:17:01. > :17:05.product and we try and make sure that the supply chain in every
:17:06. > :17:09.respect is sustainable. We also work on things like health and wellness
:17:10. > :17:13.so we are worried about people's health and we are trying to work and
:17:14. > :17:19.help multinationals again work together to live people live
:17:20. > :17:23.healthier lives. I was going to ask you is it difficult dealing in so
:17:24. > :17:27.many countries trying to get them on an even keel and dealing with so
:17:28. > :17:30.many cultures and societies. You have thrown in another element in.
:17:31. > :17:36.Is it difficult when you are dealing with the small to the big, sometimes
:17:37. > :17:40.the big can say it is easier for us to change or we don't have the money
:17:41. > :17:44.or vice versa? It is tricky. We are led by a board. I have a board. Most
:17:45. > :17:49.companies have boards of ten or 15 people. I have a board of 50 people
:17:50. > :17:54.and each is a Chief Executive. So some of them are big companies, very
:17:55. > :18:00.big companies like Wal-Mart and Unilever and Procter and Gamble and
:18:01. > :18:03.others are smaller companies like small retailers. So in that board,
:18:04. > :18:07.first of all, you get the leadership from the Chief Executive which is
:18:08. > :18:11.really important. Often the Chief Executives want to do more good in
:18:12. > :18:17.the world than some of the folklore down. So it is really important to
:18:18. > :18:20.have the CEOs around the table and then you get the smaller companies
:18:21. > :18:25.and the bigger companies blended together. If the bigger companies
:18:26. > :18:30.lead, that's great. We want to drive positive change. Just looking at the
:18:31. > :18:37.statistics here, the forum combined sales of the organisations you work
:18:38. > :18:40.with of 2.5 trillion euros and employing ten million people. How do
:18:41. > :18:45.you effect change on that scale? I imagine you have to work with each
:18:46. > :18:49.individual organisation to come to a sum of change. How on a day-to-day
:18:50. > :18:54.basis do you get the biggest firms to listen to what you're saying? You
:18:55. > :18:58.know, they typically listen because they know it is the right thing to
:18:59. > :19:01.do. When you have a conversation it is running a little bit difficult
:19:02. > :19:06.and you are not quite sure what to do, you just say what would the
:19:07. > :19:11.consumer want you to do? It sounds trite and hokey, but it is pretty
:19:12. > :19:15.obvious. How does that relate to their bottom line? With the best
:19:16. > :19:19.will in the world, the organisations say we want to provide the best for
:19:20. > :19:22.our customers, if it is going to affect their profits or where they
:19:23. > :19:25.can operate or the costs they will need to implement to get something
:19:26. > :19:30.up to a new standard, that must be a tough decision? It is for some. For
:19:31. > :19:33.some areas like safe food, we all want safe food, we know when it is
:19:34. > :19:37.not safe, that's easy. No question, you will spend whatever it takes to
:19:38. > :19:41.drive safe food. Some of the questions that maybe a bit more
:19:42. > :19:49.long-term, so you know, is it good to get rid of the refridge rants in
:19:50. > :19:53.the atmosphere that harm the ozone layer, but then all you need is a
:19:54. > :19:56.Chief Executive to say, "I know it is the right thing to do." There are
:19:57. > :20:00.a lot of those. So it is not that hard. Talking about the right thing
:20:01. > :20:05.to do, I want to talk about one issue you have taken on board, it is
:20:06. > :20:10.food waste. It is a story we talk a lot about on our programmes. Food
:20:11. > :20:13.waste, it is $750 billion annually. Your members are part of that
:20:14. > :20:19.picture. They waste food. But they have signed up, right, to cutting
:20:20. > :20:24.that by half by, still a long way, 2025, why only half? Is that
:20:25. > :20:29.optimistic enough? Well, the trouble is you're always going to have some
:20:30. > :20:33.waste. So setting a goal of 50% reduction is stretching. Actually
:20:34. > :20:37.interestingly some of the retailers in the UK are some of the best
:20:38. > :20:42.performers in the world. So they want to spread the word and help
:20:43. > :20:46.others to do better, but yes, we are going to fix, reduce 50% of the
:20:47. > :20:51.waste in our own supply chains, but we are also signing up to some of
:20:52. > :20:55.the UN goals which are to reduce where the waste most which is in all
:20:56. > :21:00.of our homes so we are going to help that. OK. Well, Peter, short and
:21:01. > :21:10.sweet, but we really appreciate your time. I know you have got the forum
:21:11. > :21:15.in... We have a summit in Cape Town. Not Johannesburg. Wonderful Cape
:21:16. > :21:20.Town. Get some work done. It is a beautiful place. Not in June! That's
:21:21. > :21:25.why you're holding it in June! Peter, nice to see you.
:21:26. > :21:26.The world's third biggest mobile phone company,
:21:27. > :21:29.Huawei, saw its net profit grow by 33% last year.
:21:30. > :21:31.The company's explosive growth was mostly driven by the huge 4G
:21:32. > :21:37.But can Huawei build on this momentum?
:21:38. > :21:40.On Wednesday it is due to unveil its latest
:21:41. > :21:44.Analysts say it has the advantage over Apple and Samsung because it
:21:45. > :22:04.One of the key things Huawei is because it makes towers and masts
:22:05. > :22:09.for phones, they have relations with operatorsment they have been able to
:22:10. > :22:12.grow massively. Not only does it help them control cost, but they are
:22:13. > :22:18.able to design the chips to be able to do what they want for their
:22:19. > :22:23.phones. Particularly when Huawei are making their own mode dumbs and the
:22:24. > :22:26.4G towers, they are able to build these to work together very well and
:22:27. > :22:32.conserve as much battery life as possible.
:22:33. > :22:34.Maike Currie, investment director at Fidelity International
:22:35. > :22:48.Airbnb, this is a great story. This is Airbnb that says you can try
:22:49. > :22:52.before you buy. It joined up with a real estate company. If you want to
:22:53. > :22:56.buy a house in a certain place, you can move into a similar one nearby
:22:57. > :22:59.to check you like the neighbourhood and the neighbours. You can do this
:23:00. > :23:03.already, but this is, you can do it yourself, but this is an idea of
:23:04. > :23:07.being joined up, the sharing economy once again? I ti it is a brilliant
:23:08. > :23:13.idea. The biggest decision, you probably make in your life is the
:23:14. > :23:16.property that you're going to buy and browsing a property is very
:23:17. > :23:20.different to living in a prort. This gives you the option of trying to
:23:21. > :23:27.out and seeing if you like the neighbourhood. I have bought a new
:23:28. > :23:34.house, I spent longer choosing a sandwich at lunch time than I did
:23:35. > :23:38.looking at the house I just bought. This is a good way of you being able
:23:39. > :23:46.to check out that you really like it before you make the biggest purchase
:23:47. > :23:50.of your life? Absolutely. Online estate agent and Airbnb are joining
:23:51. > :23:54.forces to create new business models. It is very interesting.
:23:55. > :24:00.Let's turn our attention to... We only have a couple of minutes left.
:24:01. > :24:14.This is a similar story. This is talking of that sharing economy. One
:24:15. > :24:23.Fine Stay, it is like Airbnb, but it bought Accorhotels of France. Hotel
:24:24. > :24:25.business joining forces with these online short-term holiday rental
:24:26. > :24:32.companies to basically change the market and if you look at Airbnb,
:24:33. > :24:37.they have got 1.5 million listings across the world and they have 15
:24:38. > :24:40.million hotel rooms. It is clear the model is changing and companies have
:24:41. > :24:48.to adapt accordingly. You have got to think what is it valued? What, 24
:24:49. > :25:01.billion. It doesn't own any bricks and mortar and it is valued at $24
:25:02. > :25:07.million. AccorHotels paid $129 million. Some say it is too little.
:25:08. > :25:10.It raises questions about valuations and whether the tech sector is
:25:11. > :25:15.heading for hard times. It is the one that gets in that gets the name
:25:16. > :25:19.known and it is a self fulfilling thing more people use it and more
:25:20. > :25:30.people stay and this is what this one might have suffered from. Have
:25:31. > :25:40.you heard of Onefinestay? No. Let's talk about the new rules on tax
:25:41. > :25:47.inversion. How they are threatening this Pfizer Allergan deal. You have
:25:48. > :25:51.got 15 seconds? Small companies by overseas rivals and change their
:25:52. > :25:53.domiciles. The Treasury is clamping down on this and it is really
:25:54. > :26:01.questioning whether the deal is going to go ahead or not?
:26:02. > :26:03.Well done. Just one in the ear!