24/05/2016 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Shell's boss in the hot seat as shareholders say they will vote


With an investor pay revolt looming, are we about to see another


shareholder rebellion? Unrest at Shelter as the company


comes to blows with shareholders over executive pay and climate


change -- unrest at Shell. How will it deal with new regulations?


Singapore Boots said this was bound BSI as to what it says serious


breaches of anti-money-laundering requirements.


-- boots out the Swiss bank BSI. The global markets are heading


south, we will explain why. And selling wine to China -


we'll get the Inside Track on how New Zealand's most successful


wineries is making a move into China and why the boss thinks Americans


could double their wine And as a new study shows the French


have the shortest working week - just 30 hours 50 minutes a week -


those in Beijing and We want to know what's your


typical working week? Just use the hashtag BBCBizLive,


and let us know where you live. We're less than 30 minutes away


from Shell's annual general meeting. Shareholders are expected to vote


against a ?7. 6 million pay packet for company's


boss Ben van Beurden after Shell saw its earnings fall 83%


in the first three So could we now be looking


at a shareholders spring? Some serious anchor store on their


part? -- and cost on their part? Last month BP shareholders rejected


a pay package of over $20 million for chief executive Bob Dudley


after the oil giant recorded its biggest ever operating


loss in history. And only last week almost 40%


of Deutsche Bank shareholders refused to support the performances


of the co-chief executives after sluggish profit growth


and mounting regulatory fines. -- refuse to support the pay deal of


the co-Chief Executive 's. Dissatisfaction with pay packets


that don't reflect performance are expected to reach a high point


next month when shareholders in the advertising giant WPP


will vote on the on the latest pay deal for the company's


CEO Sir Martin Sorrell. His 2015 pay packet totalled more


than $100 million, making him That is a lot of sea rose on that


pay packet! -- that is a lot of zeros.


Joining me now is Catherine Howarth, chief executive of the Share


There is a revolt against pay, the Shell AGM gets under way, there is a


fall in profit, the boss is getting a big pay deal, investors are not


happy? Not happy, and I expect a revolt, not on the scale of what


happened up the peak six weeks ago, but ?4.4 million for years workers


more than most of us would consider acceptable. -- for a year's work.


The votes are in the hands of institutional investors, pension


funds and fund managers, who act on the behalf of all of us. Everyone


with a pension fund in Britain as a shareholder in Shell, lots of us


will probably say no to the deal today, but it will probably go


through. Correct me if I'm wrong, they are looking at how they will


tackle climate change? It is not just the idea that we have to deal


with it, there are strict targets in place. The big oil firms need to lay


out how they will deal with those targets, and in Shell 's case they


have not done that? Lestienne was a shareholder resolution, an


opportunity to put something to the board of the company themselves --


last year that was 99% of shareholders voted macro for this


resolution calling for a clear disclosure about how the board would


handle future risks to climate regulations and so on. These high


carbon companies are becoming enormously risky. They have made a


lot of money for us in the past, their business model is deeply


threatened by the agreement struck in Paris last year. This is becoming


a major issue between shareholders and these companies around the


world. Tomorrow, we have Exxon and Chevron, the two biggest oil


companies in the US market, they have their AGMs, I think there will


be huge amount of dissent and a big shareholder rebellion. Shell is not


yet delivering the kind of clear strategy for a low carbon future


that shareholders want to see. On the issue of Chevron and Exxon, that


begins tomorrow. They have been most resistant to laying out the strategy


about how they will respond and what they will do, which is exactly what


investors want to hear? Of course. These are enormously valuable


companies, they perform an important role in our pension funds pots, we


depends on them for our rink in old age. Everyone watching this


programme who has a pension fund at all, which is everyone working in


Britain and many around the world, they want to retire on something


that they can live on, and that depends on companies having smart


strategies that deal of the future. Most of us will not draw our


retirement incomes for 20 or 30 years, we need a really long-term


focus, not a backward looking, we knew is to make a lot of money by


drilling from the ground and we can do it any more. Thank you Brexit


Lane in Best, Catherine Howarth, the chief executive of the Share Action


campaign. Revenues at Spotify have hit


$2.2 billion for the past year, but the Swedish music streaming


service still hasn't Those revenues were up 80%,


almost doubling the The site offers a paid


for subscription service Toyota is recalling nearly


?1.6 million vehicles in the US to replace potentially faulty air


bag inflators made by Takata. The Japanese auto-maker said


the latest recall includes some but not all models of the Corolla,


Sienna, and Lexus manufactured American firm Coca-Cola has stopped


producing soft drinks in Venezuela, because of a sugar shortage


in the country. Sugar cane production has been


falling, because of rising costs. The company said it would continue


producing sugarless drinks The firm's announcement comes


after Venezuela's biggest brewer closed ITS plants due


to a barley shortage. -- closed its plants. Let's take you


to the BBC website and a story that we are following, strikes that have


hit French oil refineries. This is coming through to us. This is as a


result of new labour law is spreading to all eight oil


refineries in the country, an ongoing dispute which has escalated.


20% of petrol stations have either run dry when it comes to their


supplies or are very, very low on supplies. This is a strike against


changes to labour laws which is spreading. We have been covering it


as a story and will keep an eye on that development.


The Swiss bank BSI has been forced to close its branch in Singapore


after being linked to a scandal at Malaysia's troubled


Swiss authorities also began criminal proceedings


against the bank over serious breaches of anti-money


It's the first time in 32 years that the Singapore Central Bank


Leisha, talk us through what's happened here and why?


It is quite unprecedented, 32 years since they did anything like this,


they are getting tough on the bank for alleged misdemeanours? That's


right. Singapore is taking a really tough stance on money-laundering in


the City, so BSI has really had an incredibly bad day. In the past


couple of hours, the Swiss have also announced they are launching


criminal proceedings into the bank over these allegations of


money-laundering, bribery and other offences. Singapore took the step of


shutting down the operation here, but BSI is domiciled in Switzerland


and so regulators in both countries have been examining the firm over


its dealings with this elation state firm. Over these dealings that they


have examined, they have find it several million dollars -- dealings


with this Malaysian firm. Following the decision, the group's CEO will


step down with immediate effect. Who is this Malaysian firm? It is state


funded and it has faced allegations that more than $4 billion years was


misappropriated. They have said there is no wrongdoing, but


ultimately it looks like authorities are still chasing this very, located


money Trail. Thank you for making sense of that, Leisha Chi in


Singapore. The king of the markets in Asia,


will get you up to date with what's was happening, Japan is down 1%,


Hong Kong by 0.33%. That is how the Dow closed on Wall Street.


Some of these issues dogging investors are happening. Oil prices


falling, lots of uncertainty about what is happening in the month of


June, the US Federal Reserve meeting and the UK referendum on membership


of the European Union. That is really on the mine of investors. We


could see sterling on the move. The governor of the Bank of England,


Mark Carney, is before the Treasury. He could be drilled on his views on


how a decision on our membership of Europe will affect our economy. Keep


an eye on the pound, keep an eye on those issues. Losses


across-the-board. Also deliver stories, like Deutsche Bank, Moody


's downgrading its outlook again. Its shares are on the move.


And Samira Hussain has the details about what's ahead


American electronics giant Best Buy will report earnings and choose day.


This is the biggest US consumer electronics chain. But falling sales


of mobile devices will mean that profits have taken a hit for the


quarter, and it has already said that first half quarter sales have


declined. It will be interesting to see if they make any changes to


expectations. Hewlett-Packard Enterprises also


reporting. Back in November 2015, it split into two separate companies.


Each sells computers and printers -- HP sells computers and printers,


Hewlett-Packard Enterprises deals with software and servers. Analysts


believe that the reshuffle will help the enterprise company's resources.


Joining us is Richard Hunter, head of research at Wilson King


Nice to see you, Richard. A month from now, we will know, In or Out,


by the 24th of June we will know. Hopefully! If it is really close,


you never know explanation I am optimistic that it will all be over


by the 24th. We will hear from Mark Carney today,


giving evidence to MPs about the inflation report. Likely to be a


question about the impact of Brexit or otherwise on the UK economy? The


market has been fairly nervous about this, there will be volatility,


whatever happens, even if we stay in. There has been a period of


underperformance, which we have had before the UK election and the


Scottish referendum. If we should leave, there will doubtless be


volatility downwards. But at least it will be out of the way. Positives


and negatives in terms of whatever the outcome might be. This is really


becoming front and centre now. The problem we have got, I think, in


terms of the electorate as much as the market, is that there is a lot


of vitriol beginning to come out from both sides now. This really has


to be put to one side to focus on the real arguments of In or Out.


Without question, we will know in a month. How friends and Central is it


for the US Federal Reserve? Two issues in terms of the US market. At


the moment, there are the US elections. Whoever may get in as the


president. Also the fact that the markets deems to be suggesting that


we might be getting a June rate high after all. Their decision is before


the UK referendum, will that hold them back at all, or are they not


that fussed? It is a possibility, but in terms of market movement, I


think the referendum is probably more at the forefront of investors'


minds, because even if the Fed hike, and they have said this before, it


will be fairly small. It will not really affect whatever we're doing


in Europe. Thank you for now, Richard. We will talk about working


weeks later. The French have the shortest, Hong Kong has the longest.


Let us know at BBCBizLive, we will talk to Richard later.


It's been a record harvest for vineyard's in the Marlborough


We will hear from the man behind Cloudy Bay, one of the biggest


wineries. Stay with us. It is a very important day for Greece, in


Brussels European leaders are grappling with a decision on Greek


debt and the relief of it. Finance ministers are meeting today


to reveal a new deal which would lock more bailout for Greece and


resolve the row with the IMF over debt relief for Athens.


Andrew Walker has the details. Demonstrators outside Parliament


over the weekend. Lawmakers have proved another batch of reforms


which could pave the way for bailout funds. They could include more


taxes, setting up a bailout fund and making it easier for banks to deal


with problem loans. But the mechanism for cutting spending a


financial targets are missed. The Greek finance minister needs two


things, a long, delayed bailout payment, and debt relief. He needs


the bailout cash ahead of bailout payments,...


Eurozone finance ministers will also debate debt relief. Something the


International Monetary Fund insists is needed to make Greece's debt


burden sustainable. That would likely mean lower interest rates and


more time to repay debt. But no one ducks and or hack at to the amount


that Athens must pay back. there Some of the other stories we


are trying to squeeze in. S Nationwide reporting a 23% rise in


profits. Up from as it says ?1 billion a year earlier. The story


for Nationwide is mortgage lending. There has been a rise in net


mortgage lending. It was up significantly, but repayments too.


Clearly, watch closely given the impact it has on the housing market.


If you are a Severn Trent customer. It says it is expecting to save ?670


million between 2015 and 2020 as it locks in its efficiencies. The


company supplies water across the UK Midlands and says the savings are


about ?260 million a head of their expenditure target. So they seem to


be hitting their targets. Our top story: The rebellion


against multi-million pound Today, it's Shell executives


who face a shareholder backlash. Top investor groups are opposing


the firms multi-million dollar pay You know we're fond


of discussing drink on this We're getting the inside track


on how a New Zealand based business is taking on the traditional


French vineyards. Cloud Bay is based in Marlborough


on the Southern Island of New Zealand and the company


is best known for its In 2003, Cloudy Bay Vineyards


were bought by the luxury goods firm LVMH who also own Louis Vuitton


and Moet and their wines are now Well, Victoria met


the man behind the brand, Ian Morden who is in London


for the Chelsea Flower show She started by asking him how


they cope when there That's one of the interesting things


about being in wine, but you can do a couple


of things to hedge. One of the things we do


is we are taking more grapes than we need and call it the policy


buffer and that's important because then we can deliver


the quality as much as the quantity. As a New Zealand wine,


your biggest market not surprisingly is Australia,


but it is not your biggest The US is the biggest


growing market. One of the reasons is the US came


very late to drinking wine. If you look at the numbers,


they drink 11 litres In Australia or here,


it is more like 22. So there is absolute potential


there. Why where do you see growth in


the medium-term for your business? I think in the medium-term,


the growth will be in China and it will be Pinot Noir as much


about Sauvignon blanc. And why China because a lot


of luxury companies have been really Well, I think the next generation


of wine drinkers in China is moving from Bordeaux to the lighter style


of reds like Pinot Noir. The other thing that is happening,


is people want wines that have a story, that


have good provenance. You have been owned by the luxury


goods company for 13 years now. How does that dictate the style


and the strategy of the company? Well, we work in a Matrix


organisation. So we share ideas.


We collaborate. But what it gives us


is access to capital. It gives us access to the luxury


marketing skills that come with being part of that company


and it gives us a long-term view. You need long-term thinking


to make good wine. Cloudy Bay owns a lot of its supply


chain, doesn't it and acquiring land How much of your day


does that take up? Well, for me it takes up a lot


of my time and there is a race on at the moment to secure the best


sites for quality wine. Our style is a particular style


and that means we're limited So yes, it takes up a lot of


my time. Why is that? Why is there a scarcity


factor around land? When you fly into Marlborough, we have two


mountain ranges and we have only got so much land and then there is the


sea. There are 25 hectares. Most of which is planted. A lot of which is


not of anymore interest to us anyway. So there is scarcity and on


the other side, we've got growing demand in the US and China so it is


driving value up. That's not necessarily a bad thing.


Increasingly the data shows that people are spending more on


experiences and less on products for example. So how does that translate


into your business? Well, let's come back to the idea of natural will


besry. We are using the natural assets. This is why the garden is so


good. It evokes what we have in New Zealand. New Zealand is like a big


garden. Wine is a cultural connector. It is as much about the


wine as it is about the context, the place, history, culture, it is true


in Bordeaux and it is true 234 inn Marlborough. In the last 12 months


or so, I have seen an increase in visitors coming from China to New


Zealand and I think it is part of the rediscovery of some of the lost


nature for them in New Zealand. When you fly into some parts of the


world, you see how heavily industrialised it is and you see


pollution. The wines come from a pristine place and that's attractive


to people and they want to come to the source. I see that side just


growing and growing for us. You are still as a wine, a luxury. It is not


the same as clean water. So how do you position yourself to make sure


that people do still spend when times are tight? As a simple


pleasure, you know, the current marketing campaign that we have is


based around the idea of escapism, sailing away and it is not really


that complicated to take a glass of wine into the park, if you are in


Paris, here it is Hyde Park and right here, it is the Cloudy Bay


Garden. A simple pleasure. That was the Chief Executive of


Cloudy Bay. Richard is back with us. We're going


to discuss working weeks. The French, unsurprisingly, have the


shortest working week. In Hong Kong it is the longest. In France they


are in the process of banning out-of-hours e-mails. In terms of


the 50 hours for Hong Kong, it is the fact that you can work from


anywhere. You are always on-call. That includes the time you spend


doing work at home? I would have thought so. I guess that's one of


the reasons the French are doing this in an effort to restrict the


amount of hours you can... How long is your working week? It is probably


about ten hours a day I would have thought. Five days a week? Five days


a week. So you're hitting 50, not the age, I mean the number of hours


a week! Yes. I think the Monday to Friday is the main thing. You've got


those two days to recharge. Gavin points out, a lot of you getting in


touch with us about this. Gavin says, "From what I've read


productivity in France, they are the most productive per hour in the EU."


That's the issue, it is not necessarily about how many hours


you're putting in, it is how much work you do while you're there?


There is the other issue that the work-life balance, whilst it might


be the case that there are countries in Europe which have the occasional


seest ta and shorter working weeks, it is different culturally. Zac


says, "My average working week is 35 hours." Another viewer in Nairobi,


"My working week is equivalent to 55 hours." Zac in New York, hello.


You're up very late. That might be an indication. Maybe you've been


working in the office late! There is statistics about how much we're


spending on our phones. 29 extra days a year on hand-held devices? As


the article points out for UK managers doing the 29 days, that's


wiped out your holiday entitlement. The crowd funding project when it


came to solar panels in the UK, they got the money, but the company has


not really made it. No, they did get the money quickly and the management


team at the time said that was more than we would need, our investment


requirements are fairly modest and 18 months later unfortunately, the


company has collapsed into insolvency. They are making the


point that the majority of people who invested in the company


self-certified, they were professional investors, but


nonetheless, it is likely they'll get... This reminds us of the risk.


High risk, high reward. And these companies that manage to raise money


very, very quickly in an alternative way, yet, there is the risk there


still? Yes, it follows in June 2015 a claims management, that went under


with around ?800,000 funding. I'm sure there will have been successes


and start-ups in general have their backs against the wall. Crowd


funding is untried and untested, people getting into that market, but


it is a little bit still a grey area when it comes to regulation. The


regulator doesn't know how to monitor it? There will be other


things. Peer-to-peer lending should they really gain traction and gain


popularity, the regulators will be all over it, I'm sure. Richard,


thank you. Nice to have you with us too. Enjoy the rest of your day. We


will see you soon. Hello again. For some a chilly start


and for others a foggy start. But


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