15/04/2016

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:00:11. > :00:13.This is Business Live from BBC News with Alice Baxter

:00:14. > :00:16.China's mighty engine is losing steam - the Asian giant

:00:17. > :00:18.reports the weakest growth since the financial crisis in 2009.

:00:19. > :00:44.Live from London, that's our top story on Friday 15th April.

:00:45. > :00:46.China's economy expanded at an annual rate of 6.7%

:00:47. > :00:49.in the first three months of this year - better than many

:00:50. > :00:52.developed economies - but too weak for this Asian might.

:00:53. > :00:58.the fallout from BP's dramatic shareholder revolt as a $20 million

:00:59. > :01:01.pay package for the boss Bob Dudley is rejected.

:01:02. > :01:03.But will it change the way executive pay is agreed?

:01:04. > :01:08.And we'll keep you up to speed with the markets.

:01:09. > :01:10.Global stocks pretty mixed on Friday as investors await the outcome

:01:11. > :01:19.And we'll be getting the inside track on a pact to share

:01:20. > :01:23.information by the five largest economies in the EU in the wake

:01:24. > :01:32.of the Panama Papers leak with our guest editor Andrew Walker.

:01:33. > :01:35.And so on that note, we want to know, do you think Russia

:01:36. > :01:37.and France will play ball and share their

:01:38. > :01:39.Would you share your tax information?

:01:40. > :02:01.We start in China with the slowdown in the world's number two economy.

:02:02. > :02:04.The latest growth figures show the weakest growth

:02:05. > :02:06.numbers since 2009 - since the financial crisis.

:02:07. > :02:14.In the first three months of this year,

:02:15. > :02:20.China's economy expanded at an annual rate of 6.7%.

:02:21. > :02:23.That's down from the 6.8% we saw in the last three months of 2015.

:02:24. > :02:26.This chart shows growth since the 1980s.

:02:27. > :02:28.From 2000, you can see the boom which boosted

:02:29. > :02:34.the whole world's economy - followed by a sharp slowdown.

:02:35. > :02:38.China's facing an array of challenges.

:02:39. > :02:40.From weak global demand for its products

:02:41. > :02:48.But at home, it's become too reliant on huge,

:02:49. > :02:52.inefficient state run firms, often called Zombie Companies.

:02:53. > :02:56.Some six million jobs will need to be cut over the next few years.

:02:57. > :02:58.This week the International Monetary Fund called China one

:02:59. > :03:00.of the biggest threats to global financial stability.

:03:01. > :03:02.In particular, Chinese firms that are struggling to pay their debts.

:03:03. > :03:04.That could be a huge ticking time bomb.

:03:05. > :03:06.The IMF says loans worth almost $1.3 trillion

:03:07. > :03:26.I'm joined by Jinny Yan, Chief China Economist at ICBC

:03:27. > :03:28.Standard Bank and also by our Asia Business Correspondent,

:03:29. > :03:44.Thanks for coming in. Karishma, you have been looking at this over

:03:45. > :03:50.there. And every time we get numbers out of Beijing, the big question is,

:03:51. > :03:57.can we trust those numbers? That is what everyone always asks, as you

:03:58. > :04:00.say, when these sorts of figures come out of Beijing. And certainly,

:04:01. > :04:06.it is very much in line with what the market was expecting. Analysts

:04:07. > :04:10.said that growth should come anywhere between 6.6 and 6.8%.

:04:11. > :04:17.Even the Chinese Communist Party, the National People's Congress, when

:04:18. > :04:19.they laid out their plans for the economy, they said that growth

:04:20. > :04:31.should come in between 6.5% and almost as if these figures have been

:04:32. > :04:35.plucked from the minds of Beijing officials themselves. But a lot of

:04:36. > :04:39.questions being asked about how real these figures are and whether there

:04:40. > :04:42.is a more protracted slowdown on the ground and how sustainable this sort

:04:43. > :04:44.of growth is for the Chinese economy.

:04:45. > :04:53.where you are. Jinny, can I ask you this, is China addicted to stimulus?

:04:54. > :04:56.I think the world is addicted to China.

:04:57. > :05:01.To China having high growth. I think the world very much needs China to

:05:02. > :05:04.be strong at the moment. The reason for growth in the rest of the world

:05:05. > :05:11.is not very clear at the moment. think a strong China is very good

:05:12. > :05:17.for the rest of the world, particularly emerging economies. So

:05:18. > :05:20.it is not very clear what is behind the growth for the rest of the

:05:21. > :05:28.world? What is behind the growth in the numbers for China? What we see,

:05:29. > :05:34.the real news is not really the headlines. 6.7%, everyone was

:05:35. > :05:39.expecting that. That is not the story, the story is that other

:05:40. > :05:44.official statistics, investment and production, those beat economic

:05:45. > :05:48.forecasts. That is actually a very strong trend. What we need to be

:05:49. > :05:50.concerned about is what lies beneath that. And of course we are going

:05:51. > :05:58.back into the traditional model of growth, pumping credit from the

:05:59. > :06:01.banks, and also infrastructure, government spending. This is how

:06:02. > :06:06.China grows and this is how they know to grow their economy. But

:06:07. > :06:07.China is very much trying to rebalance that towards consumption.

:06:08. > :06:13.But that seems to be taking a bit of a back

:06:14. > :06:14.seat for the moment. Jinny, is trying on

:06:15. > :06:21.toll of 6.5%? -- is China on course. How big a problem is corporate debt

:06:22. > :06:31.answer, 6.5% is achievable. I think the government will do a lot and the

:06:32. > :06:37.government has a lot of physical power to be able to achieve that

:06:38. > :06:39.growth. On the corporate debt story, that is a key

:06:40. > :06:49.This is a problem that China is trying to solve. A lot of that

:06:50. > :06:52.corporate debt, 160% of GDP, is sitting on banks' balance sheets.

:06:53. > :07:03.them, and if the government needs to step in with a capital injection, it

:07:04. > :07:04.may ultimately have to. And some of those state owned enterprises... Can

:07:05. > :07:06.I just bringing Karishma back in? On the debt, we

:07:07. > :07:23.talked about this could be a possible default. Can

:07:24. > :07:27.China handle that kind of some? Well, what we have been witnessing

:07:28. > :07:30.is a 30 year miracle of economic growth in China, and that proves

:07:31. > :07:32.that China can pretty much handle whatever it says it wants to handle.

:07:33. > :07:34.Don't forget, Beijing officials always points to the fact that China

:07:35. > :07:44.has a massive that is one of the big buffers to

:07:45. > :07:49.these problems. It also points to the fact that it is trying to reform

:07:50. > :07:53.the economy, as Jinny points out, but this level of debt, pumping

:07:54. > :07:58.money into the system and creating this economic growth figure that we

:07:59. > :08:04.have seen, how sustainable is that going forward? Because it can only

:08:05. > :08:09.produce growth for a period of time. And that is the big concern over the

:08:10. > :08:11.next couple of years. But Karishma, with growth still the

:08:12. > :08:18.China, very briefly, might we see that a rebalancing within the

:08:19. > :08:26.economy taking a back-seat? Indeed. And I think we are seeing

:08:27. > :08:27.sides of that. This is a difficult political issue

:08:28. > :08:31.for the government. Don't forget, a lot of what the Chinese economic

:08:32. > :08:41.on is that stability, the idea that people will not have massive job

:08:42. > :08:45.losses. We have been hearing about the massive

:08:46. > :08:50.steel and coal services... Industries. Thank you very much to

:08:51. > :08:52.you both. In other news, the five largest

:08:53. > :09:05.European economies have agreed to work together to try

:09:06. > :09:07.to combat tax evasion - urging other countries

:09:08. > :09:09.to follow their example. The UK has joined France,

:09:10. > :09:12.Germany, Italy and Spain in agreeing to share information

:09:13. > :09:13.about the secret owners of businesses and trusts who hide

:09:14. > :09:16.behind so-called 'shell companies'. The deal, announced

:09:17. > :09:18.at the International Monetary Fund meeting in Washington,

:09:19. > :09:20.comes in the wake of the tax Microsoft is suing the US government

:09:21. > :09:27.over the right to tell its users when federal agencies want access

:09:28. > :09:34.to private data. It says keeping access requests

:09:35. > :09:36.secret is against the US constitution, which states that

:09:37. > :09:38.individuals should be made aware if the government searches

:09:39. > :09:48.or seizes their property. BP shareholders have rejected

:09:49. > :09:50.a pay package of almost $20 million for chief

:09:51. > :09:52.executive Bob Dudley at the oil Just over 59% of investors rejected

:09:53. > :09:56.Mr Dudley's 20% pay increase - which came despite record losses

:09:57. > :10:01.and thousands of job cuts. It is one of the largest rejections

:10:02. > :10:04.to date of a corporate The vote is non-binding on BP,

:10:05. > :10:36.but the company's chairman has We are having a quick look at the

:10:37. > :10:42.BizLive website. Car sales up across Europe, not a good story.

:10:43. > :10:51.Volkswagen, if you read the tablet, is down. Down by 1.6%. Despite the

:10:52. > :10:57.UK buying the highest number of VW cars

:10:58. > :10:59.since the uproar over that scandal. And the other one you

:11:00. > :11:06.wanted to highlight? Sales are up at the world's

:11:07. > :11:22.retailer, Carrefour, after robust sales in Spain and Italy.

:11:23. > :11:25.Let's take a look at what is happening around the world,

:11:26. > :11:32.kicks off its spring meeting on Friday. Finance

:11:33. > :11:36.leaders have been gathering in Washington, DC this week.

:11:37. > :11:40.High on the agenda, concerns over the global economy as well as

:11:41. > :11:47.possible risks of the UK exiting from the EU, known as a Brexit.

:11:48. > :11:48.Meanwhile, we will also find out how American

:11:49. > :11:53.consumers have been feeling lately when the latest figure for April

:11:54. > :11:57.gets released. And it is expected that they have been feeling slightly

:11:58. > :12:02.better thanks to steady hiring in the labour market. And of course the

:12:03. > :12:03.earnings season continues, with another banking

:12:04. > :12:06.giant, Citigroup, reporting its results for the first three months

:12:07. > :12:13.of this year. So far its rivals, such as JP Morgan

:12:14. > :12:15.and Bank of America, have all managed to surprise the market with

:12:16. > :12:20.slightly better-than-expected results. But you have to remember

:12:21. > :12:21.that investors have been expecting the

:12:22. > :12:26.worst quarter since the financial crisis, so it is the case of under

:12:27. > :12:30.promising and over performing. Well, let's move to Asian now

:12:31. > :12:32.where stocks are fairly subdued on Friday as investors digest

:12:33. > :12:38.China's slowing but relatively upbeat GDP numbers,

:12:39. > :12:40.which were in line Meanwhile here in Europe,

:12:41. > :12:50.after a buoyant few days lead by a surge in crude prices,

:12:51. > :12:53.markets have opened pretty flat - holding their breath before a key

:12:54. > :12:56.weekend meeting of oil producers - lead by Saudi Arabia

:12:57. > :12:58.and Russia to discuss The FTSE 100, fairly flat at the

:12:59. > :13:07.open. We are joined by Jane Sydenham,

:13:08. > :13:12.Investment Director, A familiar face to us all. Let's

:13:13. > :13:21.stay with the subject of oil and the

:13:22. > :13:23.markets. Not so much today but oil has had a bit of a surge and the

:13:24. > :13:29.markets have been that upward swing. It has had quite

:13:30. > :13:33.an effect. The oil majors have had a good run this week, feeling that

:13:34. > :13:34.perhaps finally the market is stabilising.

:13:35. > :13:39.This meeting at the weekend is going to be quite interesting though I do

:13:40. > :13:41.not think we are expecting that it will make a huge difference to the

:13:42. > :13:43.supply of oil. But for the first time in months and months, we might

:13:44. > :13:46.have a sense that maybe there is some discipline

:13:47. > :13:55.coming back into the market. That is what we are looking for. Can

:13:56. > :13:59.we switch gears? Nice little entry there, by the way. Every mistake

:14:00. > :14:07.that goes on here, I pick it up! I was just going to mention, crude

:14:08. > :14:12.prices, we saw this spike in equity earlier this week. Was that a case

:14:13. > :14:14.of markets taking their lead from what we saw happen to the crude

:14:15. > :14:20.price? Definitely. It was a downward force

:14:21. > :14:21.over the last few months, the sense that maybe to some extent it is

:14:22. > :14:28.good for consumers, if the prices for oil, but it is bad for stocks.

:14:29. > :14:37.-- if the prices fall. There is less demand in China for

:14:38. > :14:39.crude and commodities, so the sense of stabilisation is quite important.

:14:40. > :14:52.Mariko was mentioning it, but boy, what a difference a

:14:53. > :14:57.years can -- a year can make. 2016, pretty

:14:58. > :15:03.dismal, although 2015 was cracking. What is behind the change? To some

:15:04. > :15:06.extent, China. China is affecting growth around the world and the

:15:07. > :15:12.manufacturing part of most economies is performing brulee, even though

:15:13. > :15:13.services are doing well. That has affected all the major economies, we

:15:14. > :15:20.have seen a lot of for European companies coming down.

:15:21. > :15:23.A lot of those companies, to some extent,

:15:24. > :15:29.are under promising. 2-wood will be interesting to see if the earnings

:15:30. > :15:32.are as bad as expected. To some extent in the US, the strong dollar

:15:33. > :15:37.has been a worry because companies will be affected by that to some

:15:38. > :15:39.extent. If we see slightly better earnings, that would be good for the

:15:40. > :15:42.markets. Still to come, spring

:15:43. > :15:49.is in the air, the cherry blossom is in full bloom -

:15:50. > :15:52.so why such glum faces at the IMF and World Bank

:15:53. > :15:54.meetings in Washington? We'll tell you why -

:15:55. > :15:56.global economic jitters, headwinds from China

:15:57. > :15:58.and the damaging fallout You're with Business

:15:59. > :16:04.Live from BBC News. He's a game changer on the pitch

:16:05. > :16:09.and is now hoping to change Arsenal footballer turned

:16:10. > :16:15.entrepreneur Mathieu Flamini has been pioneering research

:16:16. > :16:18.into an alternative to oil With his business partner

:16:19. > :16:28.he co-founded GF Biochemicals, which is the first company to mass

:16:29. > :16:30.produce Levulinic Acid, which is said to be able to replace

:16:31. > :16:34.oil in all its forms - it could potentially

:16:35. > :16:36.be used as a bio fuel or to make pharmaceuticals,

:16:37. > :16:40.plastics, cosmetics and even Tanya Beckett began

:16:41. > :16:48.by asking how it works. It is acid which reacts

:16:49. > :16:52.exactly like oil. That means you can substitute oil

:16:53. > :16:57.in traditional products. And obviously you have

:16:58. > :17:02.patented the technology We have appropriate technology

:17:03. > :17:10.that we developed eight years ago. The company was created eight years

:17:11. > :17:14.ago in Italy. We started the production in 2015

:17:15. > :17:21.and today we are entering the market, increasing our

:17:22. > :17:24.production to 10,000 tonnes. That is obviously a relatively small

:17:25. > :17:29.amount compared to the whole market. How is it that you got started

:17:30. > :17:33.in investing in this business? I moved to Milan eight years ago

:17:34. > :17:36.to play for AC Milan. At the time we were already very

:17:37. > :17:43.interested in climate change. So we created this opportunity

:17:44. > :17:53.by meeting with a scientist and together we developed

:17:54. > :17:55.this bio technology. What skills do you

:17:56. > :17:58.bring to the table? For the operation we have a very

:17:59. > :18:09.strong team on the field. I'm more focused on the

:18:10. > :18:13.strategy of the company. Also what helps a lot is my business

:18:14. > :18:16.partner who is on He is dealing with the day-to-day

:18:17. > :18:18.operation. How have you managed to get sport

:18:19. > :18:24.and business to mix? I want to make clear something,

:18:25. > :18:26.my priority is football, But as you can imagine,

:18:27. > :18:31.all players have other interests outside the pitch

:18:32. > :18:42.and my interest is the bio economy. You're watching Business Live -

:18:43. > :18:45.our top story - China's economy grew at an annual rate of 6.7%

:18:46. > :18:48.in the first three months of this year -

:18:49. > :18:54.better than many developed economies And now let's get the inside

:18:55. > :18:58.track on a busy week Our economics correspondent

:18:59. > :19:07.Andrew Walker joins us now. But let's start with a story making

:19:08. > :19:30.headlines at the IMF and World Bank. They are going to share sensitive

:19:31. > :19:33.information, these five countries? Yes, I think so, if they can

:19:34. > :19:41.establish the owners of these so-called shell companies who are

:19:42. > :19:44.used to hide their high earnings from the tax companies, they say

:19:45. > :19:49.they will share that information with each other. It is five

:19:50. > :19:58.countries. They want the rest of the G20 to take up the baton and do the

:19:59. > :20:03.same thing. This is a battle with the tax authorities? Yes, where they

:20:04. > :20:08.have the information about who benefits from a company whether they

:20:09. > :20:12.are the formal legal owner of it, they will share that information

:20:13. > :20:23.with each other. Was this on the agenda? Or is this because of the

:20:24. > :20:27.Panama leaks? The IMF meetings, there is much going on in the

:20:28. > :20:33.sidelines, this was not formal IMF business as such, but no question

:20:34. > :20:36.there is a desire to be seen to be doing something rapidly in response

:20:37. > :20:44.to the panama papers. We have spoken about the impact of rising prices on

:20:45. > :20:49.crude oil, there is the key meeting of oil producers this weekend, and

:20:50. > :20:54.key people not attending, as well. We have two very large oil producers

:20:55. > :20:59.not there, the United States and China, although they are producers,

:21:00. > :21:03.they also very large importers, so on balance they tend to do better

:21:04. > :21:09.from a low oil price. They would not want to be seen to be propping the

:21:10. > :21:15.price up, but there is no question we have got Opec, probably all of

:21:16. > :21:21.Opec, which includes Saudi Arabia and Iran, but some suggestion the

:21:22. > :21:25.Iranian minister will not be there in person, sending one of his

:21:26. > :21:30.officials instead. Russia, Kazakhstan, Mexico. If they can

:21:31. > :21:36.agree to do something, that is a substantial chunk of the world oil

:21:37. > :21:43.market. Two points I want to make. We hear that may be they will freeze

:21:44. > :21:48.production at January levels, those levels were already record high.

:21:49. > :21:53.Iran is just back and it would like to build its output up to the

:21:54. > :21:58.pre-sanctions time of something like four million and it needs the money.

:21:59. > :22:03.They do, they feel very strongly that they are entitled to reclaim

:22:04. > :22:08.the market share they lost as a result of sanctions. There have been

:22:09. > :22:13.conflicting signals from Saudi Arabia about whether they would not

:22:14. > :22:18.be prepared to do some sort of freeze without Iran taking part. The

:22:19. > :22:22.deputy crown prince said that they would not, but I think Mosby both

:22:23. > :22:25.think that is not the last word from them on it, and the signs are that

:22:26. > :22:33.they will be prepared to make an exception for Iran -- but I think

:22:34. > :22:38.most people think. It would be no more than a phrase, as you said, but

:22:39. > :22:44.the prize is now 50% above the low it reached in January -- no more

:22:45. > :22:52.than a freeze. It is about $43, something like that, for Brent,

:22:53. > :22:55.compared to 27, in January, and the high reflects the expectation that

:22:56. > :22:59.there might be at least a freeze agreed, but the longer-term context,

:23:00. > :23:06.it was less than two years was $115, so a good deal less than

:23:07. > :23:16.half the peak it reached. Andrew, thanks for joining us.

:23:17. > :23:24.In a moment we have the business pages.

:23:25. > :23:28.But first here's a quick reminder of how to get in touch with us.

:23:29. > :23:37.We can keep you up-to-date with all the latest details with insight and

:23:38. > :23:42.analysis from the BBC team of editors and analysts from around the

:23:43. > :23:52.world. You can get involved with the BBC business web page. You can find

:23:53. > :23:54.us on Twitter and Facebook. Business live, on TV and online, whenever you

:23:55. > :23:56.need to know. What other business

:23:57. > :23:59.stories has the media been Joining again us is Jane Sydenham,

:24:00. > :24:09.Investment Director, We have found this story. In the

:24:10. > :24:19.Financial Times. We could not avoid it. The fallout of this shareholder

:24:20. > :24:26.revolt of BP shareholders, voting in huge numbers against Bob Dudley's

:24:27. > :24:32.20% pay rise. It is a complex issue, it is true that he can't be blamed

:24:33. > :24:36.for the level of the oil price and BP went into loss last year because

:24:37. > :24:41.it was paying out in relation to the deepwater horizon disaster. On the

:24:42. > :24:49.other hand, the absolute level of his pay and the multiple compared to

:24:50. > :24:53.the average pay for a BP employee. The force of this vote against this

:24:54. > :25:01.kind of pay package, does this mark a turning point? I think it does,

:25:02. > :25:06.actually. 60% vote against is quite something and in the past we simply

:25:07. > :25:09.have not seen that kind of level of protest and I think shareholders are

:25:10. > :25:14.becoming more activist and they are thinking about shareholder

:25:15. > :25:20.responsibility, it is a good thing. We only have 30 seconds. Microsoft

:25:21. > :25:28.suing the Justice Department? Another Civil Liberties action on

:25:29. > :25:32.behalf of tech companies, Apple are doing the same, Microsoft are

:25:33. > :25:36.concerned that the bar for what is a reasonable request for privacy is

:25:37. > :25:41.just too low. Consumers should know if their phone is being looked at by

:25:42. > :25:49.the government? Absolutely. There is a big increase, the US Justice

:25:50. > :25:52.Department looking at this. Yes. Jane, thanks for joining us.