05/04/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson


More leaked documents from Panama show how close relatives of some


of China's leaders, including the president,


Live from London, that's our top story on Tuesday 5th April.


As tax authorities around the world promise tough action after the leak


of millions of documents from a tax haven, we reveal how close relatives


of senior Chinese politicians have been caught up in the scandal.


India cuts interest rates to their lowest level in five years,


as the country's fight against inflation seems


And this is how markets across Europe have opened this


morning - we'll look at what's moving the numbers.


And how do you know what you buy in the shops is safe,


This man has the answer - he's the head of the Consumer Goods


Forum, that focuses on keeping consumers safe and making


And as always we want to hear from you about any of the stories


Get in touch in the usual way - #BBCBizLive.


Tax authorities around the world have promised tough action


after the leak of millions of documents from the Panamanian law


They show how the world's rich and powerful hide their wealth


They also show how leading regime figures in Syria and north Korea


were able to keep their companies trading, despite being blacklisted


The papers make uncomfortable reading for a number of current


Close relatives of senior Chinese political leaders -


including the President - are among those found to have links


Our correspondent Celia Hatton has more details.


Ask the wrong question, this is what happens.


Chinese citizens who want their Communist leaders


to list their assets are rounded up and put in prison.


This is the group of men who rule China.


They refuse to disclose their wealth, but they say


they want to eliminate corruption from the Communist Party,


punishing 300,000 officials last year alone.


That makes today's news very uncomfortable for Chinese President


The relatives of seven current and former Chinese leaders


were found to have links to offshore companies,


Of the seven named, these three are the most important -


President Xi Jinping and two senior leaders.


All three men have in-laws who were listed as directors


or shareholders in offshore companies.


It's not illegal for Chinese citizens to invest overseas,


but the Communist Party bans relatives from profiting


from their political connections, so this


So far, the government is doing what it can to control the story


When I enter "Panama papers" into the search engine,


this is what I get, a message telling me the results violate


There is growing awareness in China of a large wealth gap


between the vast majority of China's ordinary people and the aristocracy.


This will translate into resentment against the Party leadership


and also more entrenched doubts about whether this one-party


authoritarian rule is suitable for China.


Slowly, we're learning more and more about how the relatives


of China's leadership store their money overseas.


Despite the best efforts of the Communist Party,


an unexpected leak of files from halfway around the world


in Panama is shedding light on China's most secretive families.


And there's much more on the revelations in those


documents - it's all on our website.


A potential buyer for Tata Steel in the UK says he could take over


the ailing business without making massive job losses.


Sanjeev Gupta, head of Liberty Group, says he's had


'very encouraging' talks with the Government.


He thinks the plant at Port Talbot could be more efficient


by replacing its large, expensive blast furnaces


with cheaper, smaller arc furnaces powered by electricity.


One of the world's largest aerospace firms has written to its 15,000 UK


employees warning about the risks of voting to leave the European Union.


In a letter to staff, Airbus says it makes "good economic


sense" for the UK to stay in the EU due to its ability to trade freely


While it would not relocate elsewhere in the event of EU exit,


the company said it might reduce its investment.


The price of oil has been volatile over the past 24 hours -


amid fears over the glut in global output.


Oil producers including Saudi Arabia and Russia are due


to meet in Doha later this month to discuss a freeze


But Iran says it won't take part in the meeting


and will keep increasing exports until they reach pre-sanction


We will talk more about oil, the price and what it is doing, it has


been volatile, and certainly moving the market. You think of the Panama


papers, a can of works, -- a can of worms, and thinking about Iceland.


The Icelandic PM remains defiant, this is about 10,000 people in wreck


the capital, gathering outside the parliament, 10,000 people is not too


bad in a country with a population of 323,000! They are seeking the


Prime Minister's resignation and the opposition party calling for a vote


of no confidence because in the Panama papers there were details of


the Prime Minister's family was macro financial affairs.


As you can see at the bottom, he says he will not resign over this.


Many world leaders seemingly have links to those offshore accounts.


Can you say his name? You go for it!


Sigmundur Gunnlaugsson, there we go! Fluent!


India's central bank has cut interest rates by 25 basis


It was widely expected - the first cut since September


to bring rates to their lowest level in more than five years.


Yogita Limaye is following this story for us from Mumbai.


Good to see you. No surprise, is the move because we have seen inflation


at the fastest-growing economy in the world, but it has dropped a


little bit? Yes, over February it dropped quite


sharply said there were expectations that perhaps the central bank might


make a bigger rate cut, 25 basis points was expected. The bosses of a


Private bank I spoke to a few days ago said there was a case to be made


for a reduction of three times that much, 75 basis points. A lot of


people not very excited by this move, the stock market certainly not


excited, they have been in the red and bank stocks are taking a hit at


this point but the governor, in his statement, has said that their


stance will remain accommodating in the months to come, so there are


expectations that if inflation remained around the 5% figure,


convened -- consumer inflation, we might the rate cuts in the months


ahead, too. Thanks very much.


A quick look at the numbers, this is what Asia did overnight, despite the


move by the Australian central bank to keep rates on hold and also the


Indian central bank to cut the rate to the lowest level in five years. A


quick look at what Europe is doing, the service sector will be in the


spotlight today. In the UK, some suggestions that the debate over


Brexit and the potential exit of the UK from the European Union could


start affecting service sector figures over the course of the


coming months ahead of the referendum taking place in June, so


we will get a snapshot of what is happening there, and a few of around


Europe, but that is currently the state of play, the FTSE 100 down by


1%, although prices proving volatile, and that, as we have said


in the past, really does spook the equity markets.


Nicely done, nice little Segway there.


I joined by a familiar face! We are going to talk about oil. It is


certainly driving things lower in Asia, so volatile. Everybody is


looking to the meeting later this month in Gauhar, in tata. Not a lot


of hope, though? No, what is interesting is the equity markets


moving, you would see lower oil prices in the past is good news for


equity markets because consumers have more pounds in their pocket but


now it is seen as a sign of a weakened global economy, and equity


markets and the oil price are moving in lockstep. There is a showdown


between Saudi and around, and if they do not come to an agreement we


will not see this glut of oil disappear any time soon -- Saudi and


Irani. Iran says it is not going to go to the meeting, and in some ways


you cannot blame them, they have been blocked with sanctions in the


past and others have stolen their market share. Iran says it wants to


keep producing to get to its pre-sanction level of 4 million


barrels per day, and there is just more of the black stuff, and I


cannot see a light at the end of the tunnel for oil gumming up? And at


the other end of the spectrum there is Russia, still pumping a lot of


oil despite President Putin's promise that Russia will scale back


on pumping oil, so I continued glut of oil. Also interesting, we have


heard talk from Saudi Arabia about setting up this sovereign wealth


fund with trillions of dollars, preparing for life after oil, so it


seems the message is getting through because we have heard until now that


Saudi Arabia is blind to the criticism and will try to keep up


production regardless, despite debate about a cap. The message is


getting through that countries which have traditionally made their money


from oil need to prepare for the future? Absolutely, they need to


diversify their revenue resources, and we have seen this in the


markets, a lot of Sobran Wealth funds sell assets to plug the gap


left by the falling oil price that has created holiday but --


volatility. Where did you think they will spend that money? We have seen


in the past it is spent on hotels and prime real estate in places like


London, we have no idea yet where they will be spending this?


Innovation, consumer, different sectors where they could spend the


money, but it remains to be seen. I know you will talk us through the


papers later, but for now, thank you.


Saudi is also introducing austerity. For the first time ever.


Yes, to stave off bankruptcy. Who Yes, to stave off bankruptcy. Who


would have thought you would hear that?


Move over Apple and Samsung -


the world's third-largest mobile phone company,


Huawei, has big plans for the smartphone in your pocket.


It's got a new handset this week, but can it beat the 33% rise


You're with Business Live from BBC News.


The Business Secretary Sajid Javid is due to meet Sanjeev Gupta,


a potential buyer of the Port Talbot steelworks,


today before flying to India this evening for talks


Meanwhile, David Cameron is likely to face renewed calls to nationalise


the South Wales plant during talks with Wales' First Minister,


Our correspondent, Andy Moore, has this report.


Last week, he went to Port Talbot to tell workers he would do


Later today, the Business Secretary will fly to Mumbai to meet Tata


executives to discuss their timetable for the sale


It's a meeting many steelworkers say should have happened some time ago.


Last night, Mr Javid's deputy was feeling optimistic.


A long way to go yet, but we are making good progress.


Could this man be the saviour of the British steel industry?


One Indian company wants to offload the company -


it could be another Indian-born tycoon, Sanjeev Gupta,


But he would want to run a very different type of business.


The old blast furnace would be closed down and replaced


Our idea is that we will look to transition from blast furnaces


to arc furnaces, from imported raw material to domestically-available


scrap, and from making carbon steel to what we call green steel,


melting recycling scrap using renewable energy.


His company Liberty has already saved this steelworks in Newport.


If he were to take over Tata's other operation,


he would hope to keep most of the workplace.


There will be a series of meetings today involving


the British Government, Welsh Government and the unions.


Everybody is hoping a deal can be done to save jobs.


And that story is on the Business Live page, a call to save those jobs


in the UK steel industry. Some criticism that any bail-out would be


throwing good money after bad and it is massive reform of the industry


that is needed now not only in terms of modernising equipment but also


changing processes. I did not know about the difference


between the furnaces. I only learned that today, between


the blast furnaces, and... They cannot be turned off?


And the Ark furnaces, which are electrically powered.


Our top story: As tax authorities around the globe promise action


following the leak of millions of documents from the Panamanian law


firm Mossack Fonseca, we reveal how close relatives


of senior Chinese political leaders have been caught up in the scandal.


Now, when you're out shopping, do you know, where the products


you're buying have come from, who made them or whether they're


Well, the Consumer Goods Forum tries to tackle issues like these,


by trying to implement a global quality level to safeguard human


rights and to maintain safety standards.


The group represents over 400 retailers and manufacturers


and operates in 70 countries around the world.


Its aim is to help shoppers and consumers, focusing on food


safety, ethical manufacturing, and responsible use


Peter Freedman is the Managing Director of the Consumer Goods Forum


Peter nice to see you. Welcome to Business Live. We touched a little


bit there on what it is you do. Explain at a practical level, how


does it work? How does the forum work? We bring together all these


companies, multinationals and quite small regional companies and we


focus basically on what we call positive change. So that's things


that consumers notice, you as a shopper, you as a consumer of a


product and we try and make sure that the supply chain in every


respect is sustainable. We also work on things like health and wellness


so we are worried about people's health and we are trying to work and


help multinationals again work together to live people live


healthier lives. I was going to ask you is it difficult dealing in so


many countries trying to get them on an even keel and dealing with so


many cultures and societies. You have thrown in another element in.


Is it difficult when you are dealing with the small to the big, sometimes


the big can say it is easier for us to change or we don't have the money


or vice versa? It is tricky. We are led by a board. I have a board. Most


companies have boards of ten or 15 people. I have a board of 50 people


and each is a Chief Executive. So some of them are big companies, very


big companies like Wal-Mart and Unilever and Procter and Gamble and


others are smaller companies like small retailers. So in that board,


first of all, you get the leadership from the Chief Executive which is


really important. Often the Chief Executives want to do more good in


the world than some of the folklore down. So it is really important to


have the CEOs around the table and then you get the smaller companies


and the bigger companies blended together. If the bigger companies


lead, that's great. We want to drive positive change. Just looking at the


statistics here, the forum combined sales of the organisations you work


with of 2.5 trillion euros and employing ten million people. How do


you effect change on that scale? I imagine you have to work with each


individual organisation to come to a sum of change. How on a day-to-day


basis do you get the biggest firms to listen to what you're saying? You


know, they typically listen because they know it is the right thing to


do. When you have a conversation it is running a little bit difficult


and you are not quite sure what to do, you just say what would the


consumer want you to do? It sounds trite and hokey, but it is pretty


obvious. How does that relate to their bottom line? With the best


will in the world, the organisations say we want to provide the best for


our customers, if it is going to affect their profits or where they


can operate or the costs they will need to implement to get something


up to a new standard, that must be a tough decision? It is for some. For


some areas like safe food, we all want safe food, we know when it is


not safe, that's easy. No question, you will spend whatever it takes to


drive safe food. Some of the questions that maybe a bit more


long-term, so you know, is it good to get rid of the refridge rants in


the atmosphere that harm the ozone layer, but then all you need is a


Chief Executive to say, "I know it is the right thing to do." There are


a lot of those. So it is not that hard. Talking about the right thing


to do, I want to talk about one issue you have taken on board, it is


food waste. It is a story we talk a lot about on our programmes. Food


waste, it is $750 billion annually. Your members are part of that


picture. They waste food. But they have signed up, right, to cutting


that by half by, still a long way, 2025, why only half? Is that


optimistic enough? Well, the trouble is you're always going to have some


waste. So setting a goal of 50% reduction is stretching. Actually


interestingly some of the retailers in the UK are some of the best


performers in the world. So they want to spread the word and help


others to do better, but yes, we are going to fix, reduce 50% of the


waste in our own supply chains, but we are also signing up to some of


the UN goals which are to reduce where the waste most which is in all


of our homes so we are going to help that. OK. Well, Peter, short and


sweet, but we really appreciate your time. I know you have got the forum


in... We have a summit in Cape Town. Not Johannesburg. Wonderful Cape


Town. Get some work done. It is a beautiful place. Not in June! That's


why you're holding it in June! Peter, nice to see you.


The world's third biggest mobile phone company,


Huawei, saw its net profit grow by 33% last year.


The company's explosive growth was mostly driven by the huge 4G


But can Huawei build on this momentum?


On Wednesday it is due to unveil its latest


Analysts say it has the advantage over Apple and Samsung because it


One of the key things Huawei is because it makes towers and masts


for phones, they have relations with operatorsment they have been able to


grow massively. Not only does it help them control cost, but they are


able to design the chips to be able to do what they want for their


phones. Particularly when Huawei are making their own mode dumbs and the


4G towers, they are able to build these to work together very well and


conserve as much battery life as possible.


Maike Currie, investment director at Fidelity International


Airbnb, this is a great story. This is Airbnb that says you can try


before you buy. It joined up with a real estate company. If you want to


buy a house in a certain place, you can move into a similar one nearby


to check you like the neighbourhood and the neighbours. You can do this


already, but this is, you can do it yourself, but this is an idea of


being joined up, the sharing economy once again? I ti it is a brilliant


idea. The biggest decision, you probably make in your life is the


property that you're going to buy and browsing a property is very


different to living in a prort. This gives you the option of trying to


out and seeing if you like the neighbourhood. I have bought a new


house, I spent longer choosing a sandwich at lunch time than I did


looking at the house I just bought. This is a good way of you being able


to check out that you really like it before you make the biggest purchase


of your life? Absolutely. Online estate agent and Airbnb are joining


forces to create new business models. It is very interesting.


Let's turn our attention to... We only have a couple of minutes left.


This is a similar story. This is talking of that sharing economy. One


Fine Stay, it is like Airbnb, but it bought Accorhotels of France. Hotel


business joining forces with these online short-term holiday rental


companies to basically change the market and if you look at Airbnb,


they have got 1.5 million listings across the world and they have 15


million hotel rooms. It is clear the model is changing and companies have


to adapt accordingly. You have got to think what is it valued? What, 24


billion. It doesn't own any bricks and mortar and it is valued at $24


million. AccorHotels paid $129 million. Some say it is too little.


It raises questions about valuations and whether the tech sector is


heading for hard times. It is the one that gets in that gets the name


known and it is a self fulfilling thing more people use it and more


people stay and this is what this one might have suffered from. Have


you heard of Onefinestay? No. Let's talk about the new rules on tax


inversion. How they are threatening this Pfizer Allergan deal. You have


got 15 seconds? Small companies by overseas rivals and change their


domiciles. The Treasury is clamping down on this and it is really


questioning whether the deal is going to go ahead or not?


Well done. Just one in the ear!


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