Browse content similar to 26/05/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Aaron | :00:00. | :00:07. | |
Japan wants G7 leaders to start shovelling the cash to boost | :00:08. | :00:12. | |
But Germany and the UK still say austerity - | :00:13. | :00:15. | |
Live from London, that's our top story on Thursday, 26th May. | :00:16. | :00:42. | |
The debate over how governments can spur global economic growth - | :00:43. | :00:45. | |
we'll be live in Japan, as leaders from the G7 get together. | :00:46. | :00:49. | |
Shares in Alibaba fall almost 7% in New York, | :00:50. | :00:55. | |
as the world's biggest e-commerce company says its accounting | :00:56. | :00:59. | |
practises are being investigated by US regulators. | :01:00. | :01:03. | |
And a mixed bag on the markets around the world. | :01:04. | :01:06. | |
The big market news today, the price of oil back | :01:07. | :01:08. | |
And we'll be getting the inside track on the taylor made | :01:09. | :01:25. | |
Legendry designer and businessman Sir Paul Smith will be on the show | :01:26. | :01:29. | |
to talk about his brand and why shareholders aren't | :01:30. | :01:31. | |
And, as the head of Coca-Cola UK launches a withering attack | :01:32. | :01:35. | |
on George Osborne's sugar tax - surprise, suprise - | :01:36. | :01:37. | |
saying it won't work and will hit the poorest members | :01:38. | :01:39. | |
of society the hardest, we want to know what you think? | :01:40. | :01:42. | |
We start in Japan where leaders of the G7 group of nations | :01:43. | :02:06. | |
are gathering in Ise Shima - in the mountains | :02:07. | :02:09. | |
Up for discussion - terrorism , the refugee crisis, | :02:10. | :02:16. | |
tensions with China over territorial waters and Britain's referendum | :02:17. | :02:18. | |
The IMF has revised down its world growth forecasts three | :02:19. | :02:36. | |
The economic picture is getting worse, not better. | :02:37. | :02:49. | |
Should governments be splashing the cash - spending more money | :02:50. | :02:58. | |
Or is austerity the way to go - cutting back and spending less? | :02:59. | :03:05. | |
On one side you have the UK and Germany who believe | :03:06. | :03:08. | |
that the only way to a sustainable economy is by spending less. | :03:09. | :03:11. | |
On the other side you have Japan which has been spending billions | :03:12. | :03:14. | |
It has been calling on its G7 partners to commit | :03:15. | :03:27. | |
to doing the same - saying cuts lead to | :03:28. | :03:29. | |
stagnation and recession.m> The United States, Canada, | :03:30. | :03:34. | |
So is there any hope of a deal to boost public spending? | :03:35. | :03:50. | |
Karishma Vaswani joins us from Ise-Shima, where | :03:51. | :03:52. | |
A lot of these G leaders might be wondering to themselves is Japan | :03:53. | :04:05. | |
really the right party to be dishing out this sort of advice, given they | :04:06. | :04:10. | |
have spent some three-quarters of a trillion US dollars trying to boost | :04:11. | :04:14. | |
spending and it hasn't exactly worked? Worked? You are right, in | :04:15. | :04:19. | |
fact it hasn't worked at all. If you look at the history | :04:20. | :04:21. | |
growth John Arne Riise and -- price environment and | :04:22. | :04:31. | |
problem, being billions of dollar worth of Government money, monetary | :04:32. | :04:38. | |
policy where you remember, earlier in year it cut interest rates to | :04:39. | :04:41. | |
get consumers and companies to spend again, that didn't | :04:42. | :04:45. | |
to revitalise Japan, structural reforms, now this is | :04:46. | :04:58. | |
what Germany and the United Kingdom say will actually | :04:59. | :05:01. | |
to make those structural reforms. It means you have to sit down, look | :05:02. | :05:07. | |
at different parts of your economy and figure out | :05:08. | :05:09. | |
what is working and what is not. That takes time. Japan says it come | :05:10. | :05:16. | |
on guy, let us get together and throw more money at the problem. | :05:17. | :05:17. | |
He needs the backing from his partners a | :05:18. | :05:20. | |
say in the Finance Minister's weekend that just passed they | :05:21. | :05:26. | |
we can't agree on any global cooperation, a joint action plan on | :05:27. | :05:31. | |
the economy, let us just decide to go our own way and hope for the | :05:32. | :05:33. | |
best. Steel, is, has appeared to be on the | :05:34. | :05:56. | |
agenda. Say it big global issue. Yes, and certainly some comment | :05:57. | :06:00. | |
coming out from the European Commission President who talked | :06:01. | :06:03. | |
about the fact that Europe will not remain defenceless in what he says | :06:04. | :06:08. | |
is a distorted market for the steel industry. No surprises there, all of | :06:09. | :06:11. | |
the attention being place odd between one country that isn't even | :06:12. | :06:16. | |
at the G7 summit. China. There were a number of references to China's | :06:17. | :06:22. | |
overcapacity in the steel sector, what European countries | :06:23. | :06:23. | |
for its part, Beijing has hit back and said this is not our problem. | :06:24. | :06:33. | |
Although China has spent the last three decades as par of its | :06:34. | :06:38. | |
Industrial steel factories it says it is not | :06:39. | :06:38. | |
because of its problem that is causing | :06:39. | :06:42. | |
weaker within European's steel sector that | :06:43. | :06:52. | |
is causing the issues, so likely we will hear more about that | :06:53. | :06:53. | |
over the next couple of days. Unlikely as you suggest we might see | :06:54. | :07:00. | |
any grand joint action plan. We can hope. | :07:01. | :07:16. | |
The price of oil has gone above $50 a barrel for the first time in 2016, | :07:17. | :07:25. | |
following supply disruptions and increased global demand. | :07:26. | :07:29. | |
The price of Brent crude hit $50.07 a barrel in Asian trade, | :07:30. | :07:32. | |
on the back of US data showing oil inventories have fallen. | :07:33. | :07:38. | |
Shares of Japanese airbag manufacturer Takata have | :07:39. | :07:40. | |
surged by 21%, the daily limit in Tokyo trading. | :07:41. | :07:42. | |
This comes after the Nikkei newspaper reported private equity | :07:43. | :07:47. | |
giant KKR may look to take control of the company. | :07:48. | :07:49. | |
Takata is at the centre of the biggest safety recall | :07:50. | :07:52. | |
in the car industry's history because of its potentially deadly | :07:53. | :07:54. | |
airbags linked to at least 11 deaths and more than 100 | :07:55. | :07:57. | |
Workers at French nuclear power stations are on strike this Thursday | :07:58. | :08:11. | |
as industrial action escalates over controversial labour reforms. | :08:12. | :08:20. | |
The CGT union said staff at 16 of France's 19 nuclear plants had | :08:21. | :08:23. | |
On Wednesday, the government said it was dipping into strategic oil | :08:24. | :08:27. | |
reserves after strikers blockaded refineries. | :08:28. | :08:40. | |
Tata Steel says it's still in the process of considering bids | :08:41. | :08:43. | |
A short list of bidders had been expected following the company's | :08:44. | :08:47. | |
The deadline for potential buyers to make formal | :08:48. | :08:51. | |
Tata has declined to say how many actual bids it has received. | :08:52. | :08:55. | |
Meanwhile, the UK Government plans to allow an overhaul | :08:56. | :08:57. | |
A $713 million pension deficit has been deterring potential | :08:58. | :09:01. | |
Shares in Alibaba fell almost 7% on Wednesday after the online retail | :09:02. | :09:26. | |
giant revealed that US regulators are investigating its | :09:27. | :09:28. | |
Leisha, what more do we know at this stage? | :09:29. | :09:41. | |
Well, what we know is that Alibaba chose to list in the US which has | :09:42. | :09:49. | |
very different financial reporting as well as accounting standards so | :09:50. | :09:54. | |
they are asking Alibaba for more details on how it calculates the | :09:55. | :09:59. | |
numbers of one of its affiliate companies as Westminster as other | :10:00. | :10:04. | |
general transaction, it has asked for data on somebody called singles | :10:05. | :10:10. | |
day, that is a 24 hours fire sale they hold each year and that brings | :10:11. | :10:13. | |
in billions of dollars each year. It is worth stressing a request for | :10:14. | :10:19. | |
more information doesn't mean they have violated any laws but it raises | :10:20. | :10:24. | |
a red flag for investors because there have been concerns is about | :10:25. | :10:29. | |
the structure, as well as transparency issues | :10:30. | :10:35. | |
Thank you for that. Staying with the markets. | :10:36. | :10:37. | |
OK, quick flash of what's driving the markets around the world. | :10:38. | :10:40. | |
One important note is the price of oil. | :10:41. | :10:42. | |
As you've heard, crude oil is back up above $50 a barrel for the first | :10:43. | :10:46. | |
That said, Asian shares struggled to gain traction. | :10:47. | :10:52. | |
Look, let's be frank, and even the market experts | :10:53. | :10:54. | |
are saying this, the markets are all a bit boring | :10:55. | :10:57. | |
It's always the same focus, US interest rates, will we see | :10:58. | :11:06. | |
world's biggest economy raise rates next month? | :11:07. | :11:10. | |
And China, the impact of the China slowdown. | :11:11. | :11:12. | |
So let's find out what'll be driving Wall Street today. | :11:13. | :11:15. | |
Here she is, Samira, with an NY wrap. | :11:16. | :11:26. | |
Two of the biggest US discount chains will post | :11:27. | :11:30. | |
earnings on Thursday, Dollar Tree and Dollar General. | :11:31. | :11:33. | |
We have seen some tough times recently for American retailers, | :11:34. | :11:36. | |
They cater to low-income customers, compared to retailers | :11:37. | :11:39. | |
Investors are taking that as an indication that perhaps dollar | :11:40. | :11:51. | |
In economic news we will get durable-goods numbers on Thursday. | :11:52. | :11:57. | |
Orders for long-lasting American-manufactured goods likely | :11:58. | :12:02. | |
This is a closely-watched metric, it can be an indication of how much | :12:03. | :12:06. | |
Here in the studio is the one and only Jeremy Cook. Morning, great to | :12:07. | :12:22. | |
see you. Let us, indeed, one and only. We are excited about this oil | :12:23. | :12:28. | |
stories as you can tell. Goldman Sachs is now predicting that crude | :12:29. | :12:35. | |
is going to consistently stay above this $50 mark. What do you think? | :12:36. | :12:43. | |
What is driving it? It is an unwind of the unnaturally bearish state we | :12:44. | :12:46. | |
had at the begin of the year. Markets are oversupplied, even with | :12:47. | :12:51. | |
the fall off in supply we saw in the fire in Canada, some militant | :12:52. | :12:54. | |
activity in Nigeria, that has boosted the price a bit. Demand is | :12:55. | :13:00. | |
starting to come back as well. Risks to that top side, risk to it comes | :13:01. | :13:07. | |
back to $60-70 a barrel. The shale operators who were put off business | :13:08. | :13:10. | |
are going to come back and say our costs are covered so we can come | :13:11. | :13:14. | |
back in. Saudi have said they are looking to expand production, if | :13:15. | :13:17. | |
they expand production that price is going to come lower. So discussing | :13:18. | :13:22. | |
between Opec and Russia about freezing out, how much has that | :13:23. | :13:27. | |
helped? It has helped a bit. Unless Iran's part of this conversation it | :13:28. | :13:30. | |
won't mean anything, they are back on the markets. | :13:31. | :13:37. | |
Briefly, they, US productivity, worker productivity expected to drop | :13:38. | :13:41. | |
for the first time in 30 years. Yes. It's a big story, because it means | :13:42. | :13:46. | |
that wages aren't going higher any time soon, that the average worker | :13:47. | :13:50. | |
isn't producing as much. What is the problem? It seems that innovation of | :13:51. | :13:55. | |
companies have gone through the global financial crisis are holding | :13:56. | :13:59. | |
on the cash, they are not investing and the economy isn't moving | :14:00. | :14:02. | |
forward. Good to talk to you. We will go through papers in a moment. | :14:03. | :14:04. | |
We will go through papers in a moment. | :14:05. | :14:06. | |
We hear from a man who's been tailoring his own path | :14:07. | :14:10. | |
in the clothing business for over 40 years. | :14:11. | :14:12. | |
Sir Paul Smith will be telling Business Live about what it takes | :14:13. | :14:15. | |
to stay on top in the ever-changing world of design. | :14:16. | :14:21. | |
You're with Business Live from BBC News. | :14:22. | :14:29. | |
Consumers are still feeling the impact of one of banking's | :14:30. | :14:32. | |
biggest scandals, with complaints about Payment Protection Insurance | :14:33. | :14:35. | |
still topping the list of woes heard by the Financial Ombudsman Service. | :14:36. | :14:42. | |
There were plenty of other complaints too, including more | :14:43. | :14:45. | |
people struggling to repay a payday loan. | :14:46. | :14:47. | |
Rob Young is in the Business Newsroom for us. | :14:48. | :14:50. | |
I get mobile. I haven't had claim but I get phone calls and I get them | :14:51. | :15:04. | |
together, a lot of people are fed up. | :15:05. | :15:12. | |
The financial ombudsman service, which mediates between financial | :15:13. | :15:18. | |
companies and consumers, received on average 4000 complaints about | :15:19. | :15:20. | |
possible PPI mis-selling every single week last year, making up | :15:21. | :15:27. | |
more than half of its caseload. Consumer organisations say it shows | :15:28. | :15:33. | |
that the complaint procedures put in place by the banks and regulators do | :15:34. | :15:37. | |
not work. They say they must be made much simpler, so people don't feel | :15:38. | :15:41. | |
they have to go to the ombudsman to complain when they don't think they | :15:42. | :15:45. | |
are getting the money they are owed. There are some other complaints as | :15:46. | :15:50. | |
well, it is not just PPI. There have been all sorts of products | :15:51. | :15:54. | |
complained about, a big increase in the number of complaints about | :15:55. | :15:58. | |
payday loans. There is a crackdown on the industry by the regulator | :15:59. | :16:02. | |
which capped the interest rate that people are able to pay, and the | :16:03. | :16:06. | |
total amount it would have to repay compare to the loan that they take | :16:07. | :16:11. | |
out. The rise suggests people are not happy with the service. There | :16:12. | :16:15. | |
was also an increase in the number of complaints about packaged bank | :16:16. | :16:19. | |
accounts will stop you pay a monthly fee and get travel insurance with it | :16:20. | :16:24. | |
as well. The ombudsman has said in a lot of these cases people get a | :16:25. | :16:25. | |
pretty good deal. Some stories that have paid our | :16:26. | :16:38. | |
interest on the website. A nod towards this, Debenhams has a new | :16:39. | :16:42. | |
Chief Executive, joining from Amazon. | :16:43. | :16:52. | |
Is Debenhams going online? Exactly. Ongoing story about the pensions | :16:53. | :17:01. | |
deficit at Kempton -- Tata, largely due to Chinese dumpling. | :17:02. | :17:04. | |
Our top story, the debate over how to stimulate sluggish global | :17:05. | :17:10. | |
growth kicks off in Japan as G7 leaders meet. | :17:11. | :17:21. | |
Now, let's get the inside track on a man who has built | :17:22. | :17:24. | |
a global business empire by cutting his cloth to suit. | :17:25. | :17:30. | |
Paul Smith, the legendry designer, has been a force in the world | :17:31. | :17:35. | |
of fashion and business for 40 years. | :17:36. | :17:38. | |
He began his career in 1970 after his teenage dreams of becoming | :17:39. | :17:45. | |
a professional racing cyclist were shattered by | :17:46. | :17:48. | |
After opening his first clothing shop, he took night classes | :17:49. | :17:53. | |
in tailoring which culminated in designing his first menswear | :17:54. | :17:57. | |
collection which in 1976 was showing in Paris under | :17:58. | :18:01. | |
Since then, the brand has expanded, now operating in 66 countries | :18:02. | :18:06. | |
You might think that the biggest part of that business | :18:07. | :18:10. | |
But in fact it's Japan where the company has really succeeded, | :18:11. | :18:17. | |
with 200 shops in streets and department stores. | :18:18. | :18:21. | |
Although it's never made a loss, the business has suffered recently. | :18:22. | :18:23. | |
Last year the business turned over more than $280 million, | :18:24. | :18:28. | |
but saw pre-tax profits almost halve during the period, | :18:29. | :18:31. | |
Victoria Fritz went to meet the man himself at Chelsea Flower Show | :18:32. | :18:40. | |
and began by asking him why he likes to visit the garden show. | :18:41. | :18:45. | |
I come at 7:30am, when nobody is around, it is great. | :18:46. | :18:50. | |
I love the energy, I put on four fashion shows a year, | :18:51. | :18:54. | |
so I know what it is like to do things in a short space of time | :18:55. | :18:59. | |
When they do these amazing gardens, I can identify with that. | :19:00. | :19:07. | |
A lot of the photographs are of close-ups of flowers, | :19:08. | :19:12. | |
which then can influence prints on a dress or a shirt or a scarf. | :19:13. | :19:18. | |
You have been in the Japanese gardens, is that the sort | :19:19. | :19:21. | |
of thing we will see on the catwalks in a few months? | :19:22. | :19:26. | |
There is an artisan garden at the back. | :19:27. | :19:28. | |
The man who does the garden is a customer anyway, | :19:29. | :19:30. | |
The birds have already nested in his garden space. | :19:31. | :19:38. | |
Japan is a big market for you, one of your biggest, | :19:39. | :19:41. | |
but we have seen a slowdown in the economy and in consumer spending. | :19:42. | :19:44. | |
A lot of people overexpanded, not necessarily in Japan, | :19:45. | :19:50. | |
They thought it was a market that would grow bigger than it has. | :19:51. | :20:00. | |
Locally, Paul Smith has been good in all of those markets, | :20:01. | :20:02. | |
we are still seeing an increase in all of Asia. | :20:03. | :20:06. | |
A tiny increase, but we have never been too greedy, | :20:07. | :20:10. | |
In the case of Japan, we have a lot of shops, | :20:11. | :20:15. | |
but we have been there for many years, we have a local partner. | :20:16. | :20:21. | |
It sounds like a lot of shops, but a lot of local brands | :20:22. | :20:24. | |
would have 400 shops, we have got just over 200. | :20:25. | :20:30. | |
You have remained a privately-owned company, what is the benefit | :20:31. | :20:37. | |
I have never borrowed, still independent, and when you have | :20:38. | :20:42. | |
not got shareholders breathing down your neck, | :20:43. | :20:47. | |
it is a big advantage, because they are always | :20:48. | :20:49. | |
Often you do things which are not correct, so you go into an area | :20:50. | :20:54. | |
which is not comfortable, and a lot of them, the big | :20:55. | :20:59. | |
companies, they have borrowed a lot, so they still have repayments | :21:00. | :21:03. | |
to take care of, the business is not there, so it is a worry | :21:04. | :21:06. | |
What makes you think you can run the company better | :21:07. | :21:12. | |
One of the things with my company, it is probably a bad thing, | :21:13. | :21:20. | |
maybe I am too autocratic, but I hope I'm not, | :21:21. | :21:22. | |
but I am very immersed in all aspects. | :21:23. | :21:27. | |
I left school at 15, I started a business in my early 20s, | :21:28. | :21:33. | |
so at some point I have written an invoice, ordered fabric, | :21:34. | :21:38. | |
All of those things have given me a grounding and a down-to-earthness | :21:39. | :21:45. | |
which a lot of other people have not had. | :21:46. | :21:48. | |
They have only had one aspect of their world, | :21:49. | :21:52. | |
and often that is not rounded enough, and the balance isn't there. | :21:53. | :21:58. | |
The Chelsea Flower Show did not exist at all, | :21:59. | :21:59. | |
this was just a field three weeks ago. | :22:00. | :22:01. | |
Logistics and the movement of staff and product must be a huge | :22:02. | :22:05. | |
It is important to keep a balance and to understand that you need | :22:06. | :22:10. | |
You need fashion shows, publicity, and that is one aspect | :22:11. | :22:18. | |
Then you need a site to your business, which is very | :22:19. | :22:23. | |
much about understanding what most of us here wear, | :22:24. | :22:27. | |
which is very simple clothes, we sell lots of classic | :22:28. | :22:31. | |
suits for men and women, lots of white shirts, black dresses, | :22:32. | :22:35. | |
as well as the things you see on the catwalk. | :22:36. | :22:38. | |
Balance is very important, keeping your feet on the ground. | :22:39. | :22:41. | |
Nobody cares how good you used to be. | :22:42. | :22:46. | |
The big boss of Paul Smith, Paul Smith, the one and only! I love this | :22:47. | :23:06. | |
story, not for the workers, but in China 60,000 workers at the company | :23:07. | :23:11. | |
that does a lot of things, but it supplies a lot of products, some of | :23:12. | :23:17. | |
the guts to the Apple iPhone, they have replaced 60,000 workers with | :23:18. | :23:23. | |
robots. In one factory as well, it has gone from 110,000 to 50,000. The | :23:24. | :23:31. | |
city is only to put 5 million, so it has boosted the unemployment figures | :23:32. | :23:37. | |
by 4.1% overnight. If we are seeing more research and develop and from | :23:38. | :23:41. | |
them and Apple within this sphere of influence and it is bringing people | :23:42. | :23:46. | |
back him, that is good news, but if the next Apple phone comes out that | :23:47. | :23:51. | |
is simply having a bigger screen and the robots can make it, this is a | :23:52. | :23:54. | |
longer term productivity issue for China. It is part of a wider trend | :23:55. | :24:01. | |
across China. And also, you were doing a story about the fact that | :24:02. | :24:06. | |
outside the AGM in Chicago for McDonald's we are seeing strikes, | :24:07. | :24:10. | |
people want a higher daily wage. It is those jobs that are in danger of | :24:11. | :24:17. | |
being automated. Yes, these low skilled, labour-intensive jobs | :24:18. | :24:27. | |
be simply put aside to machinery and costs can be saved. | :24:28. | :24:38. | |
This says the sugar tax will not work and it will hurt the poorest | :24:39. | :24:44. | |
members of society. It is a regressive tax, it takes more from | :24:45. | :24:49. | |
poorer people than it does from rich people. If their wages are being | :24:50. | :24:53. | |
used for fatty foods or sugary drinks or biscuits, a lot of the tax | :24:54. | :25:00. | |
will hurt them a lot more puff -- a lot more. Mexico but in a sugar tax, | :25:01. | :25:08. | |
sales went a bit lower, but other things increased, like fruit juices. | :25:09. | :25:13. | |
If your plan is to reduce calorie intake, it does not actually work. | :25:14. | :25:20. | |
There was a study done in the US. A couple of tweets. Somebody says, the | :25:21. | :25:25. | |
sugar tax is another way to raise income. One person says, sugar is a | :25:26. | :25:30. | |
basic commodity, why tax what the majority needs? It is not fair. Very | :25:31. | :25:34. | |
good for the Government. There will be more business news | :25:35. | :25:40. | |
throughout the day on the BBC Live webpage and on World Business | :25:41. | :25:46. | |
Report. A lot of clout across the British | :25:47. | :26:09. | |
Isles at | :26:10. | :26:10. |