05/05/2016 BBC Business Live


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Hello. This is Business Live. Brazil's embattled president tells


us that she will fight to keep her job as corruption allegations Mount


and she faces suspension as soon as next week.


Live from London, it's our top story today, the 5th of May.


Defending her Government, Brazil's president


next week's impeachment proceedings moved closer. We will be live in


Brazil for the latest. The Chinese internet retailer


Alibaba Group a is to break new records.


expected to show increasing profits in spite of the slowing Chinese


economy. After weak manufacturing and


construction, there is a lot riding on a strong reading for the service


sector today. That is the only thing that could prevent a downgrade for


UK growth next week. And we will be getting the inside


track on a undergoing a rebrand. We will speak


to the man behind one of the world's largest pork


producers about that attempt to shake off the old man


image. We might even try a little bit, you know?


after two months, if you do not buy newspapers, why not?


Welcome. We are starting today in Brazil, where


the country's president is battling to save her Government as a


political and economic crisis gets worse. She has been speaking to the


BBC and says she will fight to keep a job,


even if she is suspended next week because of impeachment proceedings.


We will hear from her in a moment, but first, let's run through the


problems facing the country. Top of the list is a corruption


scandal, a huge one. It involves the firm, construction firms and


politicians. The president faces accusations that


she used money from the State bank to cover shortfalls in her budget,


making the deficit look better than it was. The economy shrank last year


by 3.8% last year, the biggest slump in a


quarter of a century. Our South America correspondence caught up


with the president had asked her if she intends to carry on, despite


those looming impeachment proceedings. TRANSLATION:


We will keep fighting to come back to Government


if the impeachment request is accepted.


will be sure to come out victorious. We in


the Government and my supporters believe that the


process is illegitimate and illegal, because it is ultimately based on a


lie. If we have learned anything in the last six months, it is of the


rampant corruption in the political system,


in the governing party and other parties. A lot


of people agree with your defence that you did not personally benefit


from any corruption, but you were chairman


the oil company, did you really not know of what was going on?


TRANSLATION: I do not believe that Brazil is different from other


countries with regard to corruption. It is inherent and intrinsic to


corruption processes to conceal themselves and their practices.


Corruption processes are by definition


head on. These practices have to be, of course, looked into and


investigated. Let's stay with this, our


correspondent is up nice and early in Sao Paulo.


Well, the Senators in the opposition simply need a simple majority to get


the president suspended from office. If that happens, she would be


suspended for about six months and there would be a trial. She would


have a chance of coming back later but there would also be serious


prospect of being permanently removed from power.


looking good for her right now. Even her own party


is not very optimistic about the chances of her


getting enough votes next week. I want to ask, and you have been out


there for a while now, we but we always talk about this worst


economic crisis about what is happening with the


currency. It is a real mess. I am wondering, how does it play out in


everyday life? Two things stand out in Brazil and


have stood out especially last year and this - inflation and


unemployment. We are seeing a lot of people losing their jobs. Brazil has


lost about 1.5 million jobs in a year, it has been a rapid decline.


Inflation has doubled, I weigh about the Government target. Those two


things are hurting people most in their pockets. The other thing is


that consumer confidence and investor confidence is low. People


think this will drag on. On top of this, everyone knows the solution to


the crisis is difficult and hurtful for the people. It means budget cuts


and more cuts in general. It is very pessimistic, the view for the


future. Daniel, I always appreciate your


time. Let's go to Asia. Ali Baba. And


eight online shopping in China. In a few hours time the internet


shopping giant is expected to post record annual profits,


despite the slowdown China, $1 goes through Ali Baba. I


wonder if the Government in Beijing will be watching these


numbers closely, because this is linked in


some ways toward Beijing is trying to do


Yes, Ali Baba is a BT month. -- is a big beast. It is


It is dominant in e-commerce, a very important company here. It is a


barometer for the health of the economy, in particular for consumers


in this country. We are expecting dizzy record


figures from them today, growth continuing around 30%. The more keen


eyed looking back to before when Ali Baba


went public a couple of years ago. Things have slowed a little.


There is the expansion overseas. It ties into China's


desire to export its skills and big companies abroad.


The boss of Ali Baba wants overseas expansion to


take up a more sizeable proportion of revenue at Ali Baba. That is not


really happening. In fact, it is going down, and investors will look


at that today. Thank you.


He is in Shanghai. I said Singapore, didn't I?


You did. Asian city beginning with S!


Tesla motors says it is on track to has not made a profit. It made more


losses in the first three months of this year. The loss was $280


million, worse than last year, it was $154 million then. The


announcement that it is increasing production has boosted its share is


4%. As I said, it hasn't made a profit, but investors keep


pouring money in. The European Central Bank says it


will no longer produce the 500 euros note because of its role in illegal


activities. It remains legal tender and will always retain its value,


but, then you see it, they will stop issuing those new note by the end of


2018. It will introduce new 100 and 200 euros banknotes.


Japanese airbag maker Takata is to recall even more


of the devices after US authorities said they found more safety defects.


It means another 35 to 40 million airbag inflators will be added


to the list, more than doubling the existing recall.


It affects vehicles from 12 different carmakers.


Asian shares ending down on Thursday as worries over the global economy


hit confidence but - oil prices did extend


It's been all about disappointing readings and announcements


Economies over the past weeks that have worried investors.


In New York, there was another pretty lacklustre session.


In the UK today, we'll get an update on the latest service sector data -


the PMI readings which being fairly decent in the first quarter,


Both manufacturing and construction PMI's came in short of expectations


with manufacturing slipping into contraction territory


Services are vital for the UK eocnomy -


so if it's not a decent number - there could be a downgrade in


Let's check in with Michelle in New York.


Turning in their report card this Thursday is media company News


It's expected to report before in third-quarter revenue, and


first-quarter results from Hollywood studio DreamWorks Animation may draw


You may recall Comcast, the owner of NBC/Universal,


just struck a deal to buy DreamWorks Animation for $3.8


All of this to try and help it take on media giant Walt Disney.


As for clues on the future direction of US interest rates, four top


Federal Reserve policymakers will share their views on Monetary Policy


Committee outlook for the US economy at a conference in California.


Richard Hunter is head of research at Wilson King


What I would like to ask is, you tell us what is going on, because it


appears that everyone in the market is waiting for something, but I


don't think they know what they are waiting for. Am I right? You're


absolutely right. The short-term rallies we have had have been fairly


tentative. It is like the market keeps going on a sprint running out


of breath. In the absence of that one big thing, whatever it is, we


are trading sideways. A couple of weeks ago we got to the level of the


FTSE breaking even for the year, but we have lost another 100 points, so


there is no big news as such. The first quarter earnings in the United


States were OK. Sustained positive growth has yet to emerge.


Let's touch on that service PMI figure. In structuring and


manufacturing have been disappointing so far. --


construction and manufacturing. It is pretty vital. It is. It also


feeds into whether companies are holding back at the moment in terms


of investment and employment, given obviously the upcoming Brexit


referendum. That kind of uncertainty, which feeds into


markets as well, obviously, but in the real economy, uncertainty. You


could see some contraction until we get past the 23rd of June. It is


another one to add to the list in terms of general uncertainty on the


markets at the moment. Always nice to see. You will talk us through


some of the stories in the papers later. For now, thank you.


Coming up - is port a favourite tipple of yours?


Once seen as a drink for the older individual, it's now


In a moment we'll speak to the man behind the world's second biggest


You're with Business Live from BBC News.


Telecoms giant BT says annual profits rose 15%


last year to ?3 billion, boosted by stronger demand


The company also says it will spend ?6 billion over the next three years


to roll out faster broadband and mobile phone services.


Andrew Ferguson is a Telecoms Analyst from thinkbroadband.com


BT has reported a 15% rise in annual profits to ?3.03bn,


helped by stronger demand for broadband and TV services.


The company also announced that it will spend ?6 billion over the next


three years to roll out faster broadband and mobile phone services.


It certainly looks that way. There is growth in BT Sport. Audience


figures show it is popular. As much as people love to hate it.


Talking about the synergies we have seen when they talk about a merger


with EEE. They talk about cutting costs to bring the companies


together smoothly. How is that going?


In terms of the market and the consumer, we're not seeing a lot of


changes. The big change seems to be coming with the extra 1000 employees


in UK-based call centres. Support will be in the UK, which hopefully


means better quality support. It is a story, isn't it, about customers


and the competition in the market? We have seen all of the big


providers wanting to offer deals including landline, internet, all of


that in one package. The competition is pretty intense.


It has never been more intense, it is a competitive market and price


sensitive too. Thank you very much. 15% rise in annual profits coming in


at ?3 billion at BT. Don't be put off by the alcohol on the table, we


will talk about it shortly. The premium British chocolate here wants


to list on the London market Aim. The Chief Executives appeared on the


programme and we talked to him about those plans and expansion plans and


it seems paying off listed on the stock market.


You're watching Business Live - our top story Brazil's embattled


president has told the BBC that she'll fight to keep her job -


as corruption allegations mount and she faces suspension as soon


There is a full interview with the Brazilian President online. It is


worth a watch. She comes out fighting ahead of those legal


proceedings. It might still be early


here in London but never too early to sample a bit of booze -


as we assess how our next guest Port is a fortified wine which can


only be produced in the Douro Valley The average age for drinkers


of the wine is around 55 but one company is now trying to change


that with port-themed Symingtons Family Estates


are the world's second largest port maker -


Paul Symington is their Chairman and Joint Managing Director


and he joins us now. Very nice to see you and thank you


for bringing in, what we will call props, but we may work our way


through them. They may not just be decorative. Let's talk about the


industry, because as we said it is traditionally an industry skewed to


the older generation, I think it's fair to say and you are trying to


change that. How do you rebrand the industry that has this reputation?


We have to use our history, it's the oldest market in the world, we have


to use it and we cannot discard our great classic supporters and


customers but we have to attract younger drinkers otherwise we will


slowly decline and we are doing that by introducing lovely old tawny


ports that can be served chilled, matched with chocolate, Asian food.


And the growth of the premium port sector, the ports above ruby tawny


white has been strong, Scandinavia, the UK, Canada, the USA, the market


is increasing. When talking about the size of the industry and growth


around the world, talked us through where the biggest markets are,


people may think of it as a very British thing and maybe an older


generation. Where is the growth? The growth is coming basically for all


the fine wine, the major markets are Europe and North America. There is


simply not the wealth in Africa or Brazil, as you were talking about


earlier in South America, to have big growth, but we are present there


and work hard in those markets and Asia, but the growth for all fine


wine, the markets rather, is Western Europe and North America. Those are


markets we work very hard in and we've seen a distinct shift to


drinking a bit less but drinking better. We have such a long history.


I know I'm biased but the Douro Valley is the most beautiful wine


area in the world. We need to use all our cards in our hand and it is


working. We've had good growth in the UK in recent years with premium


ports in the UK, less volume and more premium. No pun intended but it


seems port is in your blood, probably literally sometimes, but


this is a family thing, right? As we were saying. Did I read that five


generations, you work with your family, some people say it would be


nice to work with brothers, sisters, wife, but can that be a double-edged


sword? When a family business is united it is incredibly powerful and


effective and when family racial chips are bad you better get out. I


don't know, we are a mixed of Scottish, Portuguese and English --


relationships. We have a pragmatic view about it and we realise if we


work together we are strong. There is a big affinity between wine and


families and a big in-built protection. Abled visualise wine


made in a beautiful vineyard in a lovely area which the Napa Valley


and Bordeaux and Burgundy are and they like to visualise those who


make it and we use that card a lot, my daughter is just down the road at


the biggest British wine fair serving wine right now. I'm tasting


this as we go a long while you carry on chatting. What makes a premium


port? You talked about the low end of the market that is pretty


saturated, pretty regular supermarket sort of port you can


buy. What makes this premium? A huge selection in the vineyards and


wineries. You are discarding 20-30% of the grapes to end up with a wine


of this quality. If you're making the standard quality of winds you


are just picking the grapes. When making wines of this quality you


have people literally hand sorting rapes on the tray is coming in. That


is an expensive -- grapes. Coming back to the younger generation I


talked to one of the make-up ladies, she is not 55, she is a lot younger.


I said you will get to taste some port and she said it is one of her


favourite tipple is. They mix it with Tomic. Yes, white port --


tonic. Do you mind that? Not at all, as long as they are buying it. Keep


the family business going. White port and tonic is delicious. We have


over 1 million Brits visiting Portugal every year and they bring


that back. We are happy that anybody uses our wine in the best way


possible. Paul Symington, good luck with everything and we appreciate


you coming in, thank you very much and we will talk to you another


time. Stay there, do not go anywhere.


Let's talk about Airbnb. In just a few years


the accommodation sharing website Airbnb has gone from tiny


San Francisco startup to a $25 billion company


that has challenged But, it's not been


without controversy though. Airbnb's co-founder,


Nathan Blecharczyk explained This is a very new model and


the rules that govern accommodation often go back decades so we've


never contemplated this. I think everyone realises


that the policies need to Governments are trying


to figure out how to do this. We are in a lot of


different jurisdictions. However, when countries


have passed new policies they have generally been


very favourable to home sharing. Just the other day the Indian


government signalled that they think home sharing has a lot


of potential for the country. I think what we've demonstrated


is that there is an immense appetite to travel more


authentically and to immerse yourself into kind of culture


and kind of really connect as opposed to having a kind


of commoditised So personalisation


and really kind of connecting with people I think


is going to be important. We have some tweets, Richard is back


to take us through the papers. That is my glass and that is Ben's glass,


something missing? That would be the port!


This is an interesting one, The New Day newspaper launched a few months


ago but it will not continue. It is all about advertising income, aiming


for sales of 200,000. At the launch it was being given away free and the


price was slowly jacked up. Apparently the current circulation


is around 30,000 copies per day. It is obviously sad news and it is also


quite surprising it should happen after two months. In terms of a


start-up business you would have thought there would be projections.


Trinity Mirror makes the point it was experimental, they just tried it


out but two months is very brief and lots of people getting in touch.


Tim Barter and tweaked it and said: printed news is out of date almost


as soon is it is published -- tweeted. I get news from Digital


apps and other media that is what papers are fighting. Where The New


Day try to be different was they were more about print comment and


analysis that newspapers can add, as opposed to rolling news which is


immediately available online. We have about 30 seconds.


This is interesting about Netflix, how to choose a TV show. The issue


is how quickly people are having to be caught, you have to have a good


picture, it's not about the quality of the show but the picture that


advertises it. Summit choice on Netflix and unless there is a


specific show you are after something needs to catch your eye --


so much choice. Netflix is spending a lot of money to see what that is


for different generations. Spot on, Richard, we appreciate your time.


Thank you for your company whether you are watching in the world. Bye


bye. Hello once again, something of a


mixed bag of weather across the British Isles again today but for


the most part the high pressure is the dominant feature across the


greater part of Finland and Wales and the weather front is spreading


quite a bit of cloud across the Scottish Borders


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