:00:11. > :00:19.Hello. This is Business Live. Brazil's embattled president tells
:00:20. > :00:22.us that she will fight to keep her job as corruption allegations Mount
:00:23. > :00:27.and she faces suspension as soon as next week.
:00:28. > :00:42.Live from London, it's our top story today, the 5th of May.
:00:43. > :00:45.Defending her Government, Brazil's president
:00:46. > :00:49.next week's impeachment proceedings moved closer. We will be live in
:00:50. > :00:56.Brazil for the latest. The Chinese internet retailer
:00:57. > :00:58.Alibaba Group a is to break new records.
:00:59. > :01:06.expected to show increasing profits in spite of the slowing Chinese
:01:07. > :01:12.economy. After weak manufacturing and
:01:13. > :01:15.construction, there is a lot riding on a strong reading for the service
:01:16. > :01:17.sector today. That is the only thing that could prevent a downgrade for
:01:18. > :01:19.UK growth next week. And we will be getting the inside
:01:20. > :01:24.track on a undergoing a rebrand. We will speak
:01:25. > :01:28.to the man behind one of the world's largest pork
:01:29. > :01:34.producers about that attempt to shake off the old man
:01:35. > :01:38.image. We might even try a little bit, you know?
:01:39. > :01:57.after two months, if you do not buy newspapers, why not?
:01:58. > :02:01.Welcome. We are starting today in Brazil, where
:02:02. > :02:06.the country's president is battling to save her Government as a
:02:07. > :02:11.political and economic crisis gets worse. She has been speaking to the
:02:12. > :02:11.BBC and says she will fight to keep a job,
:02:12. > :02:17.even if she is suspended next week because of impeachment proceedings.
:02:18. > :02:19.We will hear from her in a moment, but first, let's run through the
:02:20. > :02:21.problems facing the country. Top of the list is a corruption
:02:22. > :02:26.scandal, a huge one. It involves the firm, construction firms and
:02:27. > :02:53.politicians. The president faces accusations that
:02:54. > :02:57.she used money from the State bank to cover shortfalls in her budget,
:02:58. > :03:03.making the deficit look better than it was. The economy shrank last year
:03:04. > :03:04.by 3.8% last year, the biggest slump in a
:03:05. > :03:09.quarter of a century. Our South America correspondence caught up
:03:10. > :03:14.with the president had asked her if she intends to carry on, despite
:03:15. > :03:16.those looming impeachment proceedings. TRANSLATION:
:03:17. > :03:20.We will keep fighting to come back to Government
:03:21. > :03:25.if the impeachment request is accepted.
:03:26. > :03:37.will be sure to come out victorious. We in
:03:38. > :03:40.the Government and my supporters believe that the
:03:41. > :03:43.process is illegitimate and illegal, because it is ultimately based on a
:03:44. > :03:47.lie. If we have learned anything in the last six months, it is of the
:03:48. > :03:53.rampant corruption in the political system,
:03:54. > :03:55.in the governing party and other parties. A lot
:03:56. > :04:01.of people agree with your defence that you did not personally benefit
:04:02. > :04:02.from any corruption, but you were chairman
:04:03. > :04:15.the oil company, did you really not know of what was going on?
:04:16. > :04:19.TRANSLATION: I do not believe that Brazil is different from other
:04:20. > :04:23.countries with regard to corruption. It is inherent and intrinsic to
:04:24. > :04:27.corruption processes to conceal themselves and their practices.
:04:28. > :04:28.Corruption processes are by definition
:04:29. > :04:35.head on. These practices have to be, of course, looked into and
:04:36. > :04:39.investigated. Let's stay with this, our
:04:40. > :04:42.correspondent is up nice and early in Sao Paulo.
:04:43. > :05:00.Well, the Senators in the opposition simply need a simple majority to get
:05:01. > :05:06.the president suspended from office. If that happens, she would be
:05:07. > :05:08.suspended for about six months and there would be a trial. She would
:05:09. > :05:16.have a chance of coming back later but there would also be serious
:05:17. > :05:17.prospect of being permanently removed from power.
:05:18. > :05:22.looking good for her right now. Even her own party
:05:23. > :05:25.is not very optimistic about the chances of her
:05:26. > :05:32.getting enough votes next week. I want to ask, and you have been out
:05:33. > :05:35.there for a while now, we but we always talk about this worst
:05:36. > :05:51.economic crisis about what is happening with the
:05:52. > :05:54.currency. It is a real mess. I am wondering, how does it play out in
:05:55. > :06:03.everyday life? Two things stand out in Brazil and
:06:04. > :06:08.have stood out especially last year and this - inflation and
:06:09. > :06:15.unemployment. We are seeing a lot of people losing their jobs. Brazil has
:06:16. > :06:22.lost about 1.5 million jobs in a year, it has been a rapid decline.
:06:23. > :06:26.Inflation has doubled, I weigh about the Government target. Those two
:06:27. > :06:28.things are hurting people most in their pockets. The other thing is
:06:29. > :06:40.that consumer confidence and investor confidence is low. People
:06:41. > :06:48.think this will drag on. On top of this, everyone knows the solution to
:06:49. > :06:54.the crisis is difficult and hurtful for the people. It means budget cuts
:06:55. > :06:58.and more cuts in general. It is very pessimistic, the view for the
:06:59. > :07:05.future. Daniel, I always appreciate your
:07:06. > :07:07.time. Let's go to Asia. Ali Baba. And
:07:08. > :07:14.eight online shopping in China. In a few hours time the internet
:07:15. > :07:17.shopping giant is expected to post record annual profits,
:07:18. > :07:36.despite the slowdown China, $1 goes through Ali Baba. I
:07:37. > :07:39.wonder if the Government in Beijing will be watching these
:07:40. > :07:41.numbers closely, because this is linked in
:07:42. > :07:43.some ways toward Beijing is trying to do
:07:44. > :08:00.Yes, Ali Baba is a BT month. -- is a big beast. It is
:08:01. > :08:11.It is dominant in e-commerce, a very important company here. It is a
:08:12. > :08:13.barometer for the health of the economy, in particular for consumers
:08:14. > :08:14.in this country. We are expecting dizzy record
:08:15. > :08:18.figures from them today, growth continuing around 30%. The more keen
:08:19. > :08:30.eyed looking back to before when Ali Baba
:08:31. > :08:32.went public a couple of years ago. Things have slowed a little.
:08:33. > :08:37.There is the expansion overseas. It ties into China's
:08:38. > :08:40.desire to export its skills and big companies abroad.
:08:41. > :08:43.The boss of Ali Baba wants overseas expansion to
:08:44. > :08:49.take up a more sizeable proportion of revenue at Ali Baba. That is not
:08:50. > :08:53.really happening. In fact, it is going down, and investors will look
:08:54. > :08:57.at that today. Thank you.
:08:58. > :09:04.He is in Shanghai. I said Singapore, didn't I?
:09:05. > :09:04.You did. Asian city beginning with S!
:09:05. > :09:18.Tesla motors says it is on track to has not made a profit. It made more
:09:19. > :09:24.losses in the first three months of this year. The loss was $280
:09:25. > :09:31.million, worse than last year, it was $154 million then. The
:09:32. > :09:36.announcement that it is increasing production has boosted its share is
:09:37. > :09:38.4%. As I said, it hasn't made a profit, but investors keep
:09:39. > :09:42.pouring money in. The European Central Bank says it
:09:43. > :09:48.will no longer produce the 500 euros note because of its role in illegal
:09:49. > :09:53.activities. It remains legal tender and will always retain its value,
:09:54. > :09:59.but, then you see it, they will stop issuing those new note by the end of
:10:00. > :10:10.2018. It will introduce new 100 and 200 euros banknotes.
:10:11. > :10:12.Japanese airbag maker Takata is to recall even more
:10:13. > :10:15.of the devices after US authorities said they found more safety defects.
:10:16. > :10:18.It means another 35 to 40 million airbag inflators will be added
:10:19. > :10:20.to the list, more than doubling the existing recall.
:10:21. > :10:23.It affects vehicles from 12 different carmakers.
:10:24. > :10:37.Asian shares ending down on Thursday as worries over the global economy
:10:38. > :10:39.hit confidence but - oil prices did extend
:10:40. > :10:42.It's been all about disappointing readings and announcements
:10:43. > :10:46.Economies over the past weeks that have worried investors.
:10:47. > :10:49.In New York, there was another pretty lacklustre session.
:10:50. > :10:54.In the UK today, we'll get an update on the latest service sector data -
:10:55. > :10:57.the PMI readings which being fairly decent in the first quarter,
:10:58. > :11:06.Both manufacturing and construction PMI's came in short of expectations
:11:07. > :11:07.with manufacturing slipping into contraction territory
:11:08. > :11:15.Services are vital for the UK eocnomy -
:11:16. > :11:19.so if it's not a decent number - there could be a downgrade in
:11:20. > :11:36.Let's check in with Michelle in New York.
:11:37. > :11:38.Turning in their report card this Thursday is media company News
:11:39. > :11:42.It's expected to report before in third-quarter revenue, and
:11:43. > :11:44.first-quarter results from Hollywood studio DreamWorks Animation may draw
:11:45. > :11:47.You may recall Comcast, the owner of NBC/Universal,
:11:48. > :11:49.just struck a deal to buy DreamWorks Animation for $3.8
:11:50. > :11:56.All of this to try and help it take on media giant Walt Disney.
:11:57. > :12:07.As for clues on the future direction of US interest rates, four top
:12:08. > :12:09.Federal Reserve policymakers will share their views on Monetary Policy
:12:10. > :12:16.Committee outlook for the US economy at a conference in California.
:12:17. > :12:18.Richard Hunter is head of research at Wilson King
:12:19. > :12:30.What I would like to ask is, you tell us what is going on, because it
:12:31. > :12:34.appears that everyone in the market is waiting for something, but I
:12:35. > :12:39.don't think they know what they are waiting for. Am I right? You're
:12:40. > :12:43.absolutely right. The short-term rallies we have had have been fairly
:12:44. > :12:49.tentative. It is like the market keeps going on a sprint running out
:12:50. > :12:53.of breath. In the absence of that one big thing, whatever it is, we
:12:54. > :12:58.are trading sideways. A couple of weeks ago we got to the level of the
:12:59. > :13:05.FTSE breaking even for the year, but we have lost another 100 points, so
:13:06. > :13:11.there is no big news as such. The first quarter earnings in the United
:13:12. > :13:20.States were OK. Sustained positive growth has yet to emerge.
:13:21. > :13:25.Let's touch on that service PMI figure. In structuring and
:13:26. > :13:30.manufacturing have been disappointing so far. --
:13:31. > :13:35.construction and manufacturing. It is pretty vital. It is. It also
:13:36. > :13:39.feeds into whether companies are holding back at the moment in terms
:13:40. > :13:43.of investment and employment, given obviously the upcoming Brexit
:13:44. > :13:48.referendum. That kind of uncertainty, which feeds into
:13:49. > :13:53.markets as well, obviously, but in the real economy, uncertainty. You
:13:54. > :13:57.could see some contraction until we get past the 23rd of June. It is
:13:58. > :14:01.another one to add to the list in terms of general uncertainty on the
:14:02. > :14:04.markets at the moment. Always nice to see. You will talk us through
:14:05. > :14:10.some of the stories in the papers later. For now, thank you.
:14:11. > :14:12.Coming up - is port a favourite tipple of yours?
:14:13. > :14:15.Once seen as a drink for the older individual, it's now
:14:16. > :14:20.In a moment we'll speak to the man behind the world's second biggest
:14:21. > :14:26.You're with Business Live from BBC News.
:14:27. > :14:29.Telecoms giant BT says annual profits rose 15%
:14:30. > :14:32.last year to ?3 billion, boosted by stronger demand
:14:33. > :14:38.The company also says it will spend ?6 billion over the next three years
:14:39. > :14:45.to roll out faster broadband and mobile phone services.
:14:46. > :14:48.Andrew Ferguson is a Telecoms Analyst from thinkbroadband.com
:14:49. > :14:57.BT has reported a 15% rise in annual profits to ?3.03bn,
:14:58. > :14:59.helped by stronger demand for broadband and TV services.
:15:00. > :15:03.The company also announced that it will spend ?6 billion over the next
:15:04. > :15:09.three years to roll out faster broadband and mobile phone services.
:15:10. > :15:17.It certainly looks that way. There is growth in BT Sport. Audience
:15:18. > :15:23.figures show it is popular. As much as people love to hate it.
:15:24. > :15:30.Talking about the synergies we have seen when they talk about a merger
:15:31. > :15:34.with EEE. They talk about cutting costs to bring the companies
:15:35. > :15:39.together smoothly. How is that going?
:15:40. > :15:43.In terms of the market and the consumer, we're not seeing a lot of
:15:44. > :15:49.changes. The big change seems to be coming with the extra 1000 employees
:15:50. > :15:56.in UK-based call centres. Support will be in the UK, which hopefully
:15:57. > :15:59.means better quality support. It is a story, isn't it, about customers
:16:00. > :16:07.and the competition in the market? We have seen all of the big
:16:08. > :16:10.providers wanting to offer deals including landline, internet, all of
:16:11. > :16:15.that in one package. The competition is pretty intense.
:16:16. > :16:28.It has never been more intense, it is a competitive market and price
:16:29. > :16:36.sensitive too. Thank you very much. 15% rise in annual profits coming in
:16:37. > :16:44.at ?3 billion at BT. Don't be put off by the alcohol on the table, we
:16:45. > :16:51.will talk about it shortly. The premium British chocolate here wants
:16:52. > :16:54.to list on the London market Aim. The Chief Executives appeared on the
:16:55. > :16:59.programme and we talked to him about those plans and expansion plans and
:17:00. > :17:06.it seems paying off listed on the stock market.
:17:07. > :17:08.You're watching Business Live - our top story Brazil's embattled
:17:09. > :17:11.president has told the BBC that she'll fight to keep her job -
:17:12. > :17:14.as corruption allegations mount and she faces suspension as soon
:17:15. > :17:28.There is a full interview with the Brazilian President online. It is
:17:29. > :17:29.worth a watch. She comes out fighting ahead of those legal
:17:30. > :17:32.proceedings. It might still be early
:17:33. > :17:36.here in London but never too early to sample a bit of booze -
:17:37. > :17:39.as we assess how our next guest Port is a fortified wine which can
:17:40. > :17:50.only be produced in the Douro Valley The average age for drinkers
:17:51. > :17:54.of the wine is around 55 but one company is now trying to change
:17:55. > :17:56.that with port-themed Symingtons Family Estates
:17:57. > :18:01.are the world's second largest port maker -
:18:02. > :18:03.Paul Symington is their Chairman and Joint Managing Director
:18:04. > :18:11.and he joins us now. Very nice to see you and thank you
:18:12. > :18:14.for bringing in, what we will call props, but we may work our way
:18:15. > :18:20.through them. They may not just be decorative. Let's talk about the
:18:21. > :18:24.industry, because as we said it is traditionally an industry skewed to
:18:25. > :18:30.the older generation, I think it's fair to say and you are trying to
:18:31. > :18:34.change that. How do you rebrand the industry that has this reputation?
:18:35. > :18:39.We have to use our history, it's the oldest market in the world, we have
:18:40. > :18:42.to use it and we cannot discard our great classic supporters and
:18:43. > :18:45.customers but we have to attract younger drinkers otherwise we will
:18:46. > :18:49.slowly decline and we are doing that by introducing lovely old tawny
:18:50. > :18:55.ports that can be served chilled, matched with chocolate, Asian food.
:18:56. > :18:59.And the growth of the premium port sector, the ports above ruby tawny
:19:00. > :19:06.white has been strong, Scandinavia, the UK, Canada, the USA, the market
:19:07. > :19:10.is increasing. When talking about the size of the industry and growth
:19:11. > :19:13.around the world, talked us through where the biggest markets are,
:19:14. > :19:19.people may think of it as a very British thing and maybe an older
:19:20. > :19:25.generation. Where is the growth? The growth is coming basically for all
:19:26. > :19:29.the fine wine, the major markets are Europe and North America. There is
:19:30. > :19:33.simply not the wealth in Africa or Brazil, as you were talking about
:19:34. > :19:37.earlier in South America, to have big growth, but we are present there
:19:38. > :19:42.and work hard in those markets and Asia, but the growth for all fine
:19:43. > :19:46.wine, the markets rather, is Western Europe and North America. Those are
:19:47. > :19:49.markets we work very hard in and we've seen a distinct shift to
:19:50. > :19:53.drinking a bit less but drinking better. We have such a long history.
:19:54. > :19:58.I know I'm biased but the Douro Valley is the most beautiful wine
:19:59. > :20:02.area in the world. We need to use all our cards in our hand and it is
:20:03. > :20:06.working. We've had good growth in the UK in recent years with premium
:20:07. > :20:12.ports in the UK, less volume and more premium. No pun intended but it
:20:13. > :20:16.seems port is in your blood, probably literally sometimes, but
:20:17. > :20:22.this is a family thing, right? As we were saying. Did I read that five
:20:23. > :20:27.generations, you work with your family, some people say it would be
:20:28. > :20:32.nice to work with brothers, sisters, wife, but can that be a double-edged
:20:33. > :20:34.sword? When a family business is united it is incredibly powerful and
:20:35. > :20:40.effective and when family racial chips are bad you better get out. I
:20:41. > :20:46.don't know, we are a mixed of Scottish, Portuguese and English --
:20:47. > :20:50.relationships. We have a pragmatic view about it and we realise if we
:20:51. > :20:53.work together we are strong. There is a big affinity between wine and
:20:54. > :20:58.families and a big in-built protection. Abled visualise wine
:20:59. > :21:02.made in a beautiful vineyard in a lovely area which the Napa Valley
:21:03. > :21:05.and Bordeaux and Burgundy are and they like to visualise those who
:21:06. > :21:08.make it and we use that card a lot, my daughter is just down the road at
:21:09. > :21:15.the biggest British wine fair serving wine right now. I'm tasting
:21:16. > :21:20.this as we go a long while you carry on chatting. What makes a premium
:21:21. > :21:24.port? You talked about the low end of the market that is pretty
:21:25. > :21:29.saturated, pretty regular supermarket sort of port you can
:21:30. > :21:34.buy. What makes this premium? A huge selection in the vineyards and
:21:35. > :21:38.wineries. You are discarding 20-30% of the grapes to end up with a wine
:21:39. > :21:42.of this quality. If you're making the standard quality of winds you
:21:43. > :21:46.are just picking the grapes. When making wines of this quality you
:21:47. > :21:53.have people literally hand sorting rapes on the tray is coming in. That
:21:54. > :21:58.is an expensive -- grapes. Coming back to the younger generation I
:21:59. > :22:04.talked to one of the make-up ladies, she is not 55, she is a lot younger.
:22:05. > :22:07.I said you will get to taste some port and she said it is one of her
:22:08. > :22:18.favourite tipple is. They mix it with Tomic. Yes, white port --
:22:19. > :22:23.tonic. Do you mind that? Not at all, as long as they are buying it. Keep
:22:24. > :22:30.the family business going. White port and tonic is delicious. We have
:22:31. > :22:34.over 1 million Brits visiting Portugal every year and they bring
:22:35. > :22:38.that back. We are happy that anybody uses our wine in the best way
:22:39. > :22:42.possible. Paul Symington, good luck with everything and we appreciate
:22:43. > :22:45.you coming in, thank you very much and we will talk to you another
:22:46. > :22:50.time. Stay there, do not go anywhere.
:22:51. > :22:52.Let's talk about Airbnb. In just a few years
:22:53. > :22:57.the accommodation sharing website Airbnb has gone from tiny
:22:58. > :23:00.San Francisco startup to a $25 billion company
:23:01. > :23:02.that has challenged But, it's not been
:23:03. > :23:05.without controversy though. Airbnb's co-founder,
:23:06. > :23:06.Nathan Blecharczyk explained This is a very new model and
:23:07. > :23:14.the rules that govern accommodation often go back decades so we've
:23:15. > :23:16.never contemplated this. I think everyone realises
:23:17. > :23:19.that the policies need to Governments are trying
:23:20. > :23:23.to figure out how to do this. We are in a lot of
:23:24. > :23:25.different jurisdictions. However, when countries
:23:26. > :23:29.have passed new policies they have generally been
:23:30. > :23:32.very favourable to home sharing. Just the other day the Indian
:23:33. > :23:35.government signalled that they think home sharing has a lot
:23:36. > :23:37.of potential for the country. I think what we've demonstrated
:23:38. > :23:42.is that there is an immense appetite to travel more
:23:43. > :23:44.authentically and to immerse yourself into kind of culture
:23:45. > :23:47.and kind of really connect as opposed to having a kind
:23:48. > :23:52.of commoditised So personalisation
:23:53. > :23:55.and really kind of connecting with people I think
:23:56. > :24:08.is going to be important. We have some tweets, Richard is back
:24:09. > :24:12.to take us through the papers. That is my glass and that is Ben's glass,
:24:13. > :24:22.something missing? That would be the port!
:24:23. > :24:28.This is an interesting one, The New Day newspaper launched a few months
:24:29. > :24:33.ago but it will not continue. It is all about advertising income, aiming
:24:34. > :24:37.for sales of 200,000. At the launch it was being given away free and the
:24:38. > :24:44.price was slowly jacked up. Apparently the current circulation
:24:45. > :24:47.is around 30,000 copies per day. It is obviously sad news and it is also
:24:48. > :24:52.quite surprising it should happen after two months. In terms of a
:24:53. > :24:56.start-up business you would have thought there would be projections.
:24:57. > :25:00.Trinity Mirror makes the point it was experimental, they just tried it
:25:01. > :25:04.out but two months is very brief and lots of people getting in touch.
:25:05. > :25:08.Tim Barter and tweaked it and said: printed news is out of date almost
:25:09. > :25:15.as soon is it is published -- tweeted. I get news from Digital
:25:16. > :25:20.apps and other media that is what papers are fighting. Where The New
:25:21. > :25:25.Day try to be different was they were more about print comment and
:25:26. > :25:29.analysis that newspapers can add, as opposed to rolling news which is
:25:30. > :25:34.immediately available online. We have about 30 seconds.
:25:35. > :25:39.This is interesting about Netflix, how to choose a TV show. The issue
:25:40. > :25:42.is how quickly people are having to be caught, you have to have a good
:25:43. > :25:46.picture, it's not about the quality of the show but the picture that
:25:47. > :25:49.advertises it. Summit choice on Netflix and unless there is a
:25:50. > :25:54.specific show you are after something needs to catch your eye --
:25:55. > :25:58.so much choice. Netflix is spending a lot of money to see what that is
:25:59. > :26:02.for different generations. Spot on, Richard, we appreciate your time.
:26:03. > :26:04.Thank you for your company whether you are watching in the world. Bye
:26:05. > :26:14.bye. Hello once again, something of a
:26:15. > :26:17.mixed bag of weather across the British Isles again today but for
:26:18. > :26:21.the most part the high pressure is the dominant feature across the
:26:22. > :26:24.greater part of Finland and Wales and the weather front is spreading
:26:25. > :26:25.quite a bit of cloud across the Scottish Borders