13/05/2016 BBC Business Live


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later, the Eurozone recovers from later, the Eurozone recovers from


the financial crisis, the question is, what is the cost, an hour-long?


That is our top story on Good to have the Eurozone finally


recovering from the financial crisis. How strong is that recovery,


will it last? Apple has invested $1 billion in a car sharing app which


is a greater market share than Uber in China. We will keep an eye on the


global markets. Shares in the Japanese car-maker Nissan rose,


after it took a major stake in embattled rival Mitsubishi. The boss


of the Bank of England weighs into the whole


Brexit debate. As Facebook launches allegations of


censorship on its site, are you worried about censorship on social


media? Get in touch. We start in Europe -


in a few hours time we'll get the latest growth figures


for the 19 countries that They are expected to confirm that -


at last - after eight years and TWO recessions -


not to mention a major wobble over Greece -


the Eurozone has finally recovered in the first three months


of the year, the Eurozone economy That may not sound like much -


but for Europe that is good going. It puts the annual growth rate


at 1.6% year on year. But here's an even


more important number, the total value of all the goods


and services produced in the Eurozone in the first quarter


was 2.48 trillion euros. That's a shade more


than its peak just before the financial crisis -


in the first quarter of 2008. It's taken years longer


than the US and UK to recover- Some 700 billion euros


was pumped into the economy by the European Central Bank over


the past year and a half. As well as 'quantitative easing'


they have cut interest rates to BELOW zero -


ie negative interest rates. Angel Talavera, Eurozone Economist


at Oxford Economics Why did it take so long? It


highlights the fundamental problems of the


Eurozone, the one monitoring policy and exchange rate for very different


countries. That is the point, the disparity


continues. Germany, Northern Europe, then Italy, Greece? The hype was the


Eurozone would lead to a strong convergence, that is not happened.


You have countries like Germany and Greece which have


To have one policy for both countries nearly impossible.


We keep hearing, people from outside the region, looking in, investors


around the world, they are not optimistic. They seem to be very


pessimistic? It is hard to be optimistic on the Eurozone, after so


many years of mediocre growth stock the prospects are not that great. I


understand why in investor would not be optimistic.


The Eurozone will grow at a steady pace, but the risk is to fall into


mediocrity. Unless there are some big changes made, we will never see


growth rates much higher. Aside from the economic and political


headwinds, in recent months we have seen the migrant


crisis taking control of the area. How big a factor is that? That is


one of the biggest challenges, not only a net economic issue, but a


social issue. It has been very challenging socially and


politically. The challenge of taking those people will be enormous. It is


an opportunity to benefit as well. I just saw this two-day, cracking


little piece. One of the consequences, last year Greece for


capital controls into the banks, restricting people taking cash. One


of the consequences of that, Greeks, in record numbers, are


signing up to credit and debit cards. The thing about them, leaving


an electronic trail for the taxman, which is in a country which has a


reputation for dodgy tax. That is a silver lining of an otherwise pretty


terrible situation for Greece. It might lead to an improvement in the


fiscal balance, which we know is being watched constantly by


everybody. Shares of Apple have fallen below


$90 for the first time in nearly two years amid investors' concerns


about slumping iPhone sales. On Thursday, a report citing


a source within Apple said component suppliers in Taiwan should


expect fewer orders. The pace of iPhone sales has slowed,


particularly in Asia, and there are no major


new product releases scheduled. During the trading session Apple


briefly lost its position as the world's most valuable company


to Google's parent company Alphabet. They are both worth just under


500 billion dollars. Manchester United are due


to release their financial results later today and-


according to Deloitte- the club is expected to become


the biggest earners in World The Premier League team have


recently signed a new 10-year kit deal with German


sportswear giant Adidas. Manchester United are due


to release their financial Manchester United were bought


by the Glazer family in a controversial


leveraged buyout in 2005- the company floated on the New York


Stock Exchange in August 2012. China's leading app-based taxi


service, Didi Chuxing. Leisha - how big a deal is this


and why are they doing it? You are very close in pronouncing


it. It shows that Apple has a strong belief


in a couple of things, one is China, the second is


the sharing economy, and car technology. Tim Cook is


visiting China later this month, he says this $1


billion deal will help iPhones and iPads are levelling off


China, the market is saturated. Apple


something else. It is not a small country, they control 90% of China's


private car market. investors, Alibaba, Google will have


a hard time catching up, they are yet to crack the market.


Lacklustre performance on the markets.


The bank of Japan may add to its massive stimulus before too long.


falling, the load 6100 for the first time in a month.


Hard to say why that is, other than other European markets are lower on


the back of those fools we saw in the


US and Asia. Oil prices slipping a little bit.


We have the details about what is happening on Wall Street. Many


American retailers have shown disappointing profits this week. It


looks as if US sales have gone up for the


month of April. That is welcome news given they fell for the month of


March. What changed? People stepping up their purchases of


automobiles. Also on Friday, the consumer


sentiment for the month of May. Telling us how confident people are


feeling about the US economy. This is a number really closely watched


by the US Federal reserve. Consumer sentiment probably went up in the


month of May from a seven-month low, as Americans see improvement in both


the labour market and finances. James Bevan, Chief


Investment Officer of CCLA We have that Friday feeling. Asian


stocks off the back of a tech sell-off. Apple saying they will not


sell as many iPhones eMac, that means in Asia we will not buy as


many components. There are plenty of people saying it is a pause for


breath before they can to ahead. There will be one and a half billion


people on the planet owning an iPhone before the cycle is over.


That would They are just below 100. The bad


news is the iPhone is over, bad news for the component players, we have


heard the story in Asia. Hence Apple wanting to diversify into content.


Apple is saying we want original content, we will invest heavily,


doing things on our phones, watch it. If we look at how


tech stocks outperformed, they generally got whacked. A slight


recovery from Harmison? For people who are patient with


their stocks, very good. The great advantage for Amazon, people are


prepared to be optimistic, whereas with


Apple, very pessimistic. It is a fraction of the valuation for


Amazon. Brazil, the impeachment. How are markets responding? Markets


are optimistic, but they are spoilt for choice with cheap emerging


markets. You will come back and Still to come, has the head


of the Bank of England gone too far Stay tuned - we'll have


more from our Economics You're with Business


Live from BBC News. Research carried out for the BBC has


revealed that more than 600 bank branches have closed


across the UK in the past year. In population terms


it's hitting rural One of those is Birchington


on Sea in Kent. Welcome to Birchington-on-Sea,


in Kent. It is like many villages, with


a bustling high street of shops. But one thing here is


missing, the banks. Mandy runs a local deli,


and she is trying to figure out how she will


do her banking when the village


loses its last remaining bank. Why do you think


the banks have closed? But for them all to close,


I don't know why, The other thing


is the passing trade. All the villagers used to come


in and do their banking, and spend money in the shops,


and stuff like that. Across the road used to be the HSBC,


down there a Barclays, But they have all closed


in the past year. This is the last bank in town,


but it also will close next month. 600 others have shut


across the UK in the last year. The Post Office here is picking


up some of the slack, My time is to be quite precious,


and I have to spend maybe half an hour, 45 minutes, even an hour


sometimes, just driving to Obviously they've got reasons


to close their branches down, but it The banks say they are investing to


offer a wider level of services. It is about casting costs, but the cost


to the community could be much higher. The Tesco boss gets an


annual bonus of ?3 million. The company did return to profit for the


first time in years, look at this, eggs, we all love them and they are


coming down in price! Eight years and two


recessions later. The Eurozone has finally recovered


from the financial crisis. And now let's get the inside


track on a busy week We've had the Governor


of the Bank of England, Mark Carney, saying that a Brexit


vote may spark a recession. We should say for our worldview was


that Brexit means the referendum in the UK about whether the UK will


stay in the European Union or leave. Saudi Arabia's state oil company,


Saudi Aramco, is preparing for the largest stock market


flotation in history. And Greece has been seeking


another bailout ... We're joined by our economics


editor Kamal Ahmed. Good to see you. Should we start


with the boss of the Bank of England, scare tactics, does he have


the right to come out and say that if the UK leaves the European Union


there will be a recession with house prices plummeting and things like


that? I think the governor is thinking to himself that he won't


have many chances to speak about this debate so yesterday it was the


inflation report when the Bank of England looks up a whole of the UK


economy and I think is really used it to make this stern warning about


what he believes. But it is not just him, it's him and eight other


members of the Monetary Policy Committee. That is the group of bank


and external economists who set interest rates in the UK. There


would be a negative impact on UK economic growth if Britain were to


leave the European Union. This comes after one week of pretty woeful data


on the UK economy. Some people estimate that UK economic growth in


April went down 20.1%. This means that if there is downward pressure


on growth which the Bank of England believes they would be if there was


Brexit, that would take Britain into negative to injury. Two quarters of


negative growth gives you what the bank of England governor described


yesterday as a technical recession. One final point. A deliberate use of


the word "Recession". If you speak to mark Carney he does believe the


Bank of England needs to be transparent on the concerns it holds


because what's the point of saying after the referendum result, we


thought this but we didn't say anything at the time! He says it is


an issue of transparency. It has caused a lot of talk in the UK,


whether it is right or not. It was a big week for Greece again on Monday,


this controversial bill voted to and then the topic of debt relief being


discussed again amongst Eurozone finance ministers throughout the


week. How likely is that to be, considering Germany, which until now


has been so against the concept of it? It seems that what they don't


want is a massive controversy outside the British issue of the


referendum, blowing up in Greece. They have said, it's quite positive


news, that they want to look at the issue of debt relief. Yet


absolutely, as you say, will Germany stomach fundamental changes in what


Greece is being asked to do after the 2012 Euros and crisis? There


will be lots more negotiation. We've had these things going on familiar


is. But better news in the Greek economy, unemployment in Greece has


come down to a four-year low. There is some reform going through and in


the Eurozone, as you say, there has been some positive economic news so


at a time when the UK economy seems to be stuttering the Eurozone


economy, we've had very strong Germany and GDP figures this


morning, it seems to be showing signs of momentum and recovery.


If they are given more debt relief, isn't that a gift? Greece is in a


position with dad at 120% of GDP, will it ever be able to pay off that


debt pile and what is the way that we can get the Greek economy back in


order? I don't think it can be seen as a gift. But what you are doing is


managing the way and the number of years it will pay back and how it


uses the European stability mechanism to pay off its debts and


can you have a more shallow glide path to a position where it's got


that debt under better control? And Saudi Arabia today, talk us through


that. Our colleague Simon Jack went to Saudi Arabia to injury the chief


executive of Saudi Aramco, their main oil company -- he went to


interview him. They want to sell part of that to raise huge mud of


money for the Saudi government. And they think production will still


increase. -- huge amount of money. The Chief Executive Officer said


this in his interview with Simon. Pressure on the oil price may come


down as Saudi keeps the tabs open. Interestingly the head of the


International energy authority said that oil demand was increasing from


India in particular, and from China. So the oil price has been relatively


robust over the last 3-4 months. Biggest public offering in history.


Always great stuff, have a great weekend.


Now, auctions of old comic books have


Originally they cost just a few cents to buy -


but now they are changing hands for five or even six-figure sums.


Heritage Auctions in New York sells over $30 million


of comic books and original comic art per year.


Michelle Fleury got a sneak preview ahead of this weekend's auction.


I am here at Heritage Comics and comic art auction. This is a cover


of Superman number one, he is of course faster than a speeding bullet


and he can leap a building in a single bound. Did you know that one


of his other superpowers was making money? If you bought this in 1939 it


was worth 10 cents and today it is expected to go under the hammer for


$28,000. What are the other highlights on display? The last


panel has been incredible because that is every character who made


their first appearance in the strip until then. He would have wonder


woman number two from 1942. Some of the prices we have got would have


been unthinkable ten years ago or even five years ago. One of the star


lots is this ex-man cover which the seller bought as a young boy. When I


was 13, in 1976I went with my father to a comic book convention in


London, I had birthday money and we bought it. I paid around 15 or ?20.


We hope it will go for six figures. An incredible return. The lesson is,


by what you love because if it does not go up in value at least you will


have something to read! Welcome back. I was checking my Twitter feed


because we've had some responses to the question we asked at the start


of the show, asking what you think about editorial bias on social


media, talking about this Facebook story. Ryan says, I am not worried


about censorship on social media. I may be one of the few millennial 's


who get news from reputable sources like the BBC, social media sites


should not be sources of his career should just share things with your


friends that you agree on. James is back. Marcus Cauberg is in the news.


It's really important to the integrity of the company, it prides


itself on understanding the people who play get. That is one way in


which they monetise what they are up to. -- Mark is a Cauberg synonyms.


Week can skip the newspapers because I know that you want to talk about


Europe. -- we will be able to skip the newspapers. Germany is powering


ahead. These numbers are really very poor. Europe still has a huge


challenge. On April 29 we have the Portuguese vote. That has saved the


Eurozone from another crisis. I think Europe is still hanging by a


thread. Jiminy's growth figure was stronger than in any quarter last


year. The smack Germany's growth figure. We are talking about one


number. For three years it has mainly been flat. I argue that we


cannot expect good news from the Eurozone until we solve the real


issue, the single fiscal authority. Negative interest rates are one


mechanism by which the European Central Bank provides fiscal support


through Europe, in a sense. There will be hell to pay. It is


interesting. Many valid points, to be frank and we did not even do the


papers. Sorry about that. James Bevan, thank you.


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