09/05/2016 BBC Business Live


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The Greek Prime Minister Alexis Tsipras has defended controversial


new pension and tax reforms approved by parliament.


We will talk you through what is at stake.


Facebook has won a court victory in China over


Is this a sign that China is softening in its attitude


to Facebook after Mark Zuckerberg's attempts to get the company


We will talk you through the winners and losers in the market.


And the company that built its business


on the humble computer mouse - Logitech - it's sold


But where does it go now in a post PC world?


We'll get the inside track with the boss later


And buying a house at 85 years of age -


a mortgage lender in the UK has raised its maximum age limit -


it says it reflects Britain's ageing population.


But is 85 too old for a mortgage - or is it a great idea?


Do get in touch with us with all your views on that story. We are


beginning in Greece. Greek MPs have passed


a controversial package of tax and pension reforms,


vital for the receipt of the next instalment


of international bailout funds. It follows a 2-day debate


which was held amid violent Let's take a quick look at the key


reforms the parliament has approved: Top of the list, the


government has changed the income tax banding system,


meaning that Greeks will now see a larger portion of their salary


taxed at higher rates. Pensions are also being hit


with a number of benefits The hope is that this will reduce


pension spending from 17 to 15 percent of GDP


in the country by 2019. Dividends tax has also


been increased to 15 And let's not forget that


Greece is already looking to implement spending cuts that


will amount to 3 percent of the country's gross domestic


product or 5 point 4 billion Later today, finance


ministers meet in Brussels Christian Schulz, Director


of European Economics Good to see you. Let's start on


this. The IMF is saying today what it has said for some time, Greece's


debt is unsustainable, it is unrealistic to think it could


possibly pay it all back. Here's the problem. European leaders cannot be


seen writing off Greek debt but at the same time, giving them the next


chunk of money, you cannot write off and give loans because that becomes


a gift. The legal side of it, that makes things obligated, but it is


not unconditional. Greece is implementing very tough structural


austerity reforms and has been doing that over the past year. Whilst


there has been a debate over how effective that has been, they have


faced a lot of pain. The argument that other countries might follow


down the same route is I think week. What needs to be demonstrated is


this gets back on course, and I think the IMF are right to have


severe doubt. A lot of people continue to feel the pain. We've got


these new reforms which resulted in mass demonstrations, petrol bombs


being thrown, tax and pension changes. Reducing pay-outs, merging


fund, increasing social security contributions, raising taxes. It


does beggar belief, how long can the Greeks continue to suffer? The one


thing missing is growth. The economy was flat-lining last year. This year


will probably not be much better. But next year they expect a pretty


strong role. There are doubts about how we get there, if we impose


additional austerity, if there is a liquidity crisis because of the bank


closures. If tourism is not looking like it is going to grow again as


much as it has been growing. Growth is what is missing, obviously, but


you cannot grow when you are cutting like this. Indeed, and that is the


big flaw of this programme. Thank you.


Takata shares fell as much as 3.5% on Monday as media reports suggest


more recalls over faulty airbags supplied by the Japanese company.


Sunday's Nikkei newspaper said that Japanese car maker Honda will recall


an additional 20 million airbags provided by Takata.


Honda shares have edged slightly higher despite the news.


trade data shows that both exports and imports fell more


Exports fell 1.8% compared with April last year while imports


That marked the 18th consecutive monthly decline, suggesting


that domestic demand remains weak despite a rise


Oil prices have jumped because of supply shocks


The disaster has shut half the country's oil sands capacity,


More than 80,000 people have left Fort McMurray in the heart


of Canada' oil sands, where the fire has torched 1,600


Currently both brent and WTI crude prices are up on the news.


Facebook has won a trademark dispute in China against a food company


that was calling itself by the same brand name.


We have been there before with the Apple Store.


The government currently blocks Facebook to China's


700 million internet users but the internet giant has recently


gone on a charm offensive to access this huge market.


Charlotte Glennie is in Singapore for us.


Is it working? This is a tough one when you're trying to battle


Beijing. It is certainly tough. It has prompted plenty of speculation


that they might be willing to do this. The charm offensive that you


mention has been going for a long time. He's visited Beijing, he has


had a meeting, he has become fluent in Mandarin and as we know that


takes a long time. Under Chinese law, any multinational that takes on


this fight must prove that their brand is well known in China and


internationally, which could be pretty tough if your side is block


there. This is in contrast to the trademark case last week in which


apple lost out against a company making bags using their trademark.


You win some and you lose some. Thank you for joining us. Let's look


at market across the world and how they have been going.


Hong Kong is up slightly. In Asia they are grappling with lots of


news, not least the latest trade numbers out of China which were not


the best. Did not really pull down the markets in general but markets


in Shanghai were trading lower. They were hit by the news coming out of


the Chinese government. Let's look at European markets so you have a


sense of how things are going. We've had some good economic news out of


Germany today and also these markets are boosted by the fact that Athens


came to an agreement on austerity measures over the weekend. Will they


get a deal in Brussels? It is making get a deal in Brussels? It is making


people think they will get the money they need because of moving forward


in terms of austerity. This report is on what we should look out for on


Wall Street. The piece is starting to slow down. That does not mean


there is not plenty around two digests. Major US department stores


will report their results. Retail sales numbers are out. This should


provide some insight into the health of the US consumer. This Monday,


America's biggest meat processor releases their results. A drop in


livestock costs boosted profit margins. They will most likely be


looking for updates. Solar city reports the company is forecast to


report a loss. Let us continue to focus on the


markets. Welcome to the programme. Very quickly, can we start with the


very disappointing news, the US economy jobs numbers, they were


hoping 202,000 jobs were created in April and you got 160, around. That


will put a lot more pressure on the central bank. Absolutely, we started


the year with rate hikes in four market and we are down to one. The


are managing the X it from QE and at the same time keeping the US economy


momentum going. Many were expecting June, we would see another rate rise


but these numbers derail that a little bit. Absolutely. If you look


at the rate curve, the probability of a hike in June is only 4%. This


probably means it is very low. The expectation is most likely


September. I think there is likely to be at least one rate hike this


year. Let's talk about oil price. What is going on in Canada, terrible


wildfire causing serious devastation. Give us your take on


that and what is going on today. We've been expecting a gradual


rebound in the oil price. It has kind of happened. Absolutely.


companies have slashed budgets companies have slashed budgets


because they are worried about supplies. I think the dynamic today


is likely to be sustained because there has been such a low


positioning on low oil futures but we could see a gradual rebound of


the next few months to the end of the year. Thank you. He is not off


the hook yet. Back in five minutes. Of mice and money -


in a moment we'll be talking to the chief executive of Logitech -


the firm that made a fortune But is now changing direction


in a post PC world. You're with Business


Live from BBC News. Before we talk about mice, which is


a whole different meaning... Saudi Arabia is planning


what could be the world's largest ever share sale worth


70 billion pounds. It's set to list the huge oil


company Aramco on the London, Hong Kong and New York stock


exchanges. It's part of a major economic revamp


which saw Saudi Arabia replace its influential


and long-serving oil Victoria Fritz joins


us in the newsroom. Tell us more about this. This was an


exclusive from the Daily Telegraph. Really interesting, some of the


details we are hearing. A sale will be planned for 2017. 5% of the


equity of the company. It is really interesting. 70 billion would be


five times bigger than any other initial public offering in history.


To tell you why this is happening and why we are getting this


happening now, the reason for a listing on multiple jurisdictions is


threefold. First off, at that sort of colossal size the Saudi market


could not handle it. They need to split this up across the globe. In


terms of why they've decided to go to the US, for China and also for


the UK, we are looking for strategic stakes, money from different parts.


They are looking for them to develop oilfields and that technology and


get this money from the investment and reinvested into this company.


Then they can diversify and remove the addiction to oil.


Temperatures Pretty on the balcony. Let's do Greggs sales up. Sales up


at Greggs by nearly 4%. Greggs on the high street, sells everything,


but we were both saying... I bought the odd sausage roll, but it is the


baker's hot sandwich range and breakfast menu... It could come in


handy now! We had good industrial numbers from Germany, that's


important for us. Our top story: Eurozone finance


ministers are meeting today to discuss the approval of more


desperately needed The Greek parliament passed


controversial pension and tax We saw lots of demonstrations and


more petrol bombs. We shall keep you up-to-date with that as the day


progresses. Let's move swiftly on. Time now to get the Inside Track


on one of the big names in tech. It's a company that built


its reputation on making computer accessories,


but more recently it has taken on a new direction following


a change of leadership in 2013. Logitech was founded in a farm


building in the village of Apples, Shortly after, the firm opened


another office in the US The computer mouse was the product


that made Logitech Keyboards and other computer related


products soon followed. The company has sold over a billion


mice since 1985. But the global economic downturn


and falling PC sales hit the company hard, and in 2011 Logitech


changed direction. It has moved away from just the PC


market, and now designs a wide range of products for music,


gaming, video and other Since 2014, Logitech has


tripled its profitability and now sells its products


in over 100 countries. The Chief Executive of Logitech


is Bracken Darrell. Great to have you with us? It is


great to be here. Let's bring some of this stuff over here. We've got


the Logitech products. Logitech is a company built, it was built up on


the back of PC sales, PC sales we know what happened. Smartphone and


mobile devices came in. I think it is fair to say that Logitech was, a


good example of a company that didn't miss the boat, but was


running on the warf trying to jump on it. It was a bit late? That's


correct. In 2013 we started entering new categories. We entered four new


categories so far and we have got more to come and each one is really


exciting and we're really excited about where we're up to. In terms of


that time of transition as Aaron was menninging, Logitech was behind the


curve, but those within Logitech tell us that you were quite, you


were the catalyst of change. You were the sort of the turn around


boss as turned that brought the new ideas? We went from declining 7%


that year, we grew 9% this last year and it was really a team effort. We


built our design organisation. We have an amazing team there. We got a


great technology organisation and continued to add new capability


including software and Cloud connection and now we are creating


products like that which is really, really exciting. Let's talk about


this. You have got a couple of items here. This is a speaker, isn't it?


It is. This is, you jumping on to the mobile world and offering the


products... That's right. Gaming and things like that. This is a


Bluetooth speaker. This is water proof. You could probably drop it


off a second floor building and it won't damage it. I was running in


Hyde Park and I saw a group of people running with three of these.


Wow. But does it still work? It works. You say you could put it in


water as well. Yeah, that's a fantastic product. We have got three


different versions of that and it is doing extremely well. This is a good


old-fashioned mouse, but not so old-fashioned. It is really cool.


This is a gaming mouse. The hardest area of gaming right now, or of


sports right now is the rise of E-sports. This is a ?130 mouse. It


is the fastest mouse in the world. In terms of price? Yes. That's about


200 bucks. Yes. It is the best mouse you can buy. It is the fastest mouse


you can buy. Most people think that a wired mouse is faster than


wireless. That's wireless and it is faster than any mouse ever made.


This is another example of a new category. This is a charging base


with a smart control for the new iPad pro. You can drop your iPad Pro


into it. You can use it to watch videos. It is phenomenal. It


launched within the last three months. Am I right by saying we were


reading, weren't we, that Logitech, you have been dipping your toe into


a hot topic at the moment, driverless cars? We're probably not


going to launch a driverless car, but we are working on a huge range


of products. Some are top-secret. Something might go in the car, we


will see! You don't want to answer! Somebody said they may not answer


that question. All this is so unbelievably competitive. So many


other big names are doing exactly what you're doing. How do you


different ate yourself and also how do you keep on top of all of this?


We play with everybody in the industry. We are a Swiss company and


we are used to playing with everybody. We have an innovation


engine that's very fast and very broad and we're just constantly


launching new products. That's our lifeblood. Great design, great


technology new products. But they won't all be successful?


Occasionally we have stuff that doesn't work, but we risk manage


they will and we continue to launch new things all the time. OK. It is


short and sweet. We will keep across it all, but we've got to leave it


there. Thank you very much for coming in. Thank you, thank you very


much. Let's see what other


stories are being talked In a moment we'll take a look


through the business pages but first here's a quick reminder of how


to get in touch with us. We will keep you up-to-date with all


the latest details with insight and analysis from the BBC's team of


editors root around the world. And we want it hear from you too. Get


involved on the BBC Business Live web page:


On Twitter we are at: You can find us on Facebook:


Business Live on TV and online whenever you need to know.


What other business stories has the media been


Kokou Agbo-Bloua, Managing Director, Global Head of Engineering


and Strategy at Societe Generale Corporate and Investment Banking


Nationwide raising borrow age to an age limit to 85. So at 85 years old


in theory you can get a mortgage. That's what it goes up to, isn't it?


You can apply at 80 and get a five year mortgage. 85 is the cap. It was


75 before, but what they have mention issed there is a cap of 60%


for the loan-to-value. They make sure that the ability of that loan


to be repaid is secured. But it shows the fact that in a slow growth


environment to borrow, Larry Summers concept of stagnation we have the


concept of having young people having trouble with down payment and


grandparents will ultimately be forced to tap in the loan market to


help them out. So this is an example where the grandparents don't


necessarily give the young people the money for the deposit, but get


the mortgage out themselves, possibly? Correct. Possibly to


cash-out the high equity they have in the houses and use the cash to


help, you know, their kids. An interesting idea. An interesting


idea. You have been getting in touch with your views on this one. So one


viewer for example says, "Who will pay the inheritance tax if the


mortgage holder dies? Before the mortgage is paid off?" And there is


the issue of life insurance which would be expensive? This boils down


to the ageing of the population. This is a path of least resistance.


Where ability to apply for mortgages will have to be extended to a


population that's getting older and older and these issues will


ultimately have to be addressed by, you know, the Government or the


banks. We have got 30 seconds. Financial


Times, price water house to deploy drone. An accounting firm, it is


more than that, what do they want to do with drones? It is deploying that


in Poland which is one of their subsidiaries for surveyors or


insurance or doing more analysis when it comes to land surveying or


factories or in the construction sector. Wind turbines, off-shore


wind turbines, I was reading, it is amazing really. We've got to wrap it


up. Kokou We appreciate your time. That's another Business Live. We


will see you tomorrow.


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