Browse content similar to 01/06/2016. Check below for episodes and series from the same categories and more!
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An impeached president and an economy mired deep | :00:14. | :00:18. | |
in recession, how does Latin America's largest economy, | :00:19. | :00:20. | |
Live from London, that's our top story on Wednesday, 1st June. | :00:21. | :00:43. | |
Laden with debt and a shrinking economy, can Brazil's interim | :00:44. | :00:45. | |
president drag the country back into growth? | :00:46. | :00:47. | |
And from one commodity rich country to another but it's a very different | :00:48. | :00:50. | |
Its latest growth number is surprisingly good news, | :00:51. | :00:53. | |
boosted by exports and consumer spending. | :00:54. | :01:01. | |
A quick look at how the European markets begin the day. Lots of red | :01:02. | :01:07. | |
on the board. We'll tell you why later. Aaron. | :01:08. | :01:14. | |
And we'll be talking to entrepreneur Lloyd Dorfman who opened one small | :01:15. | :01:18. | |
bureau de change shop in London back in 1976. | :01:19. | :01:25. | |
It's called Travelex and today it's the world's biggest | :01:26. | :01:27. | |
And we're looking at how a British retail institution. | :01:28. | :01:36. | |
Marks Sparks is turning off the music in its stores - why? | :01:37. | :01:39. | |
Because its ageing customers are complaining about the noise? | :01:40. | :01:45. | |
But hang on - what about us youngens, | :01:46. | :01:51. | |
But hang on - what about us youngens, what about younger people? | :01:52. | :01:54. | |
Latin America's biggest economy, Brazil, it's got soaring government | :01:55. | :02:02. | |
debt, rising inflation and escalating unemployment | :02:03. | :02:04. | |
and just to add to the mix it's also mired in political scandal. | :02:05. | :02:07. | |
It's due to report its latest growth figures and it looks like it is only | :02:08. | :02:10. | |
The interim president, Michel Temer, is proposing a raft of economic | :02:11. | :02:15. | |
measures, but can they rescue Brazil's economy? | :02:16. | :02:19. | |
The government has a huge deficit and needs to make savings | :02:20. | :02:21. | |
Mr Temer wants to create constitutional spending limits, | :02:22. | :02:28. | |
reducing the growth of health and education spending. | :02:29. | :02:37. | |
He also wants to reform the country's pension system, | :02:38. | :02:40. | |
making Brazilians work longer and retire later. | :02:41. | :02:44. | |
Opening up the oil sector to foreign firms is also on the agenda, | :02:45. | :02:47. | |
making the industry less reliant on government investment. | :02:48. | :02:53. | |
Edward Glossop, emerging market economist at Capital Economics. | :02:54. | :03:01. | |
Edward great to have you in the studio with us. You know, you go | :03:02. | :03:07. | |
boy, where do you start with Brazil? No, seriously, there is so much to | :03:08. | :03:11. | |
do to try and bring it back from the brink. The $50 billion saving a | :03:12. | :03:16. | |
year... Yes. Where is that going to come from? Well, it is a good | :03:17. | :03:22. | |
question. 90% of spending is mandated and earmarked by the | :03:23. | :03:26. | |
constitution or fiscal rules and so that spending is going to be | :03:27. | :03:32. | |
extremely difficult to cut. He has got his work cut out getting that | :03:33. | :03:36. | |
through Congress for sure. The more an economy cuts, an economy that's | :03:37. | :03:42. | |
already, right, you know, soaring unemployment, inflation, is up | :03:43. | :03:48. | |
nearly 11% the last time I looked, the currency has taken a hammering. | :03:49. | :03:52. | |
The more you cut, the more it will hurt the other stuff, isn't it? | :03:53. | :03:57. | |
Absolutely. That's going to exacerbate the recession. When the | :03:58. | :04:02. | |
commodities boom was, commodity prices were high and rising, now | :04:03. | :04:10. | |
that the commodities boom fizzled out it overspent in the boom and how | :04:11. | :04:14. | |
it is having to cut back when times are tough. We've got this | :04:15. | :04:20. | |
impeachment. It is a six month investigation, it is an impeachment | :04:21. | :04:22. | |
trial. Is that still putting off investors? There is still | :04:23. | :04:26. | |
uncertainty, right? Of course. That's putting off investors | :04:27. | :04:30. | |
investing in Brazil and probably making it one would imagine hard for | :04:31. | :04:34. | |
Brazil to go to the foreign money markets and raise money? Of course. | :04:35. | :04:39. | |
What does it do? This is an interim Government. This week he had two | :04:40. | :04:42. | |
members of the Cabinet resign. So it is not a good start for Temer. It is | :04:43. | :04:51. | |
in a difficult place right now. The Olympic Games. A small shot in the | :04:52. | :04:56. | |
arm, a boost to the economy, yes? Well, typically for these economies, | :04:57. | :05:02. | |
especially for large economies like Brazil the Olympic Games don't have | :05:03. | :05:05. | |
a huge boost to the economy. For what it is worth we don't expect it | :05:06. | :05:09. | |
to have a significant boost or have any significant impact in terms of | :05:10. | :05:13. | |
dragging the economy out of recession. We think the boosts are | :05:14. | :05:18. | |
overdone. Edward short and sweet, but we appreciate it. | :05:19. | :05:25. | |
You can keep that cup now since you've drunk out of it. | :05:26. | :05:29. | |
Japan's Prime Minister Shinzo Abe is expected to announce a delay | :05:30. | :05:40. | |
The tax is one of the key planks of Mr Abe's promised | :05:41. | :05:44. | |
reforms, aimed at boosting the country's inflation rate. | :05:45. | :05:46. | |
The move is expected to be delayed until 2019. | :05:47. | :05:54. | |
Tourism spending has outpaced global trade for the fourth year in a row. | :05:55. | :06:00. | |
The US followed by China, followed by France and Spain. Figures | :06:01. | :06:05. | |
released this month show international tourism grew by 4% in | :06:06. | :06:10. | |
2015 generating $1.5 trillion. Japanese telecommunications giant | :06:11. | :06:13. | |
SoftBank have said it will sell at least $7.9 billion of its shares | :06:14. | :06:16. | |
in Chinese ecommerce SoftBank is the major | :06:17. | :06:18. | |
shareholder in Alibaba and its stake will fall to about 28% | :06:19. | :06:31. | |
of the Chinese firm. Softbank shares climbed | :06:32. | :06:34. | |
3.5% on the news to The tablet is working today. We're | :06:35. | :06:46. | |
looking at the Business Live page. You and I touched on the plastic | :06:47. | :06:52. | |
money. The Brits. Us Aussies had plastic money for a long time. We're | :06:53. | :06:57. | |
playing catch up. Is the new ?5, does it survive in the washing | :06:58. | :07:00. | |
machine? Yes, it should. It's plastic. The key is in the word! I | :07:01. | :07:05. | |
want to just do this here. The world's longest tunnel. Oh yes. It | :07:06. | :07:13. | |
is about to open, isn't it? Today. Longest, deepest rail tunnel. | :07:14. | :07:17. | |
Switzerland, isn't it? This is like a quiz. Am I winning? How long is | :07:18. | :07:28. | |
it? 25 miles. It is de-Seend to make easy connection between the ports of | :07:29. | :07:31. | |
Northern Europe and Southern Europe. The Europeans love their tunnels. | :07:32. | :07:35. | |
Just in time for the school holidays as well. 25 miles! | :07:36. | :07:43. | |
I haven't lived there for a long time, but the Aussie economy is | :07:44. | :07:45. | |
growing. Australia's economic growth | :07:46. | :07:49. | |
is at its fastest since 2012. It grew at a better-than-expected | :07:50. | :07:51. | |
1.1% in the first three The Aussies are selling more stuff | :07:52. | :08:02. | |
abroad, but the Aussies are buying stuff on the ground in Australia? | :08:03. | :08:07. | |
That's right. They're doing a bit of both and of course, we know this is | :08:08. | :08:13. | |
an economy known as the Thunder from Down Under, that's not you Aaron, | :08:14. | :08:16. | |
that's your economy we're talking about here! It is a surprise because | :08:17. | :08:20. | |
we know how all regional economies have been hit by a slowdown in | :08:21. | :08:25. | |
China. Australia counting on China as its largest trade partner, | :08:26. | :08:29. | |
growing better than expected. So up 1.1% in the first quarter. It was up | :08:30. | :08:36. | |
3.1% annually, a pace of growth that Australia hasn't enjoyed since late | :08:37. | :08:39. | |
exports you talked about and thanks exports you talked about and thanks | :08:40. | :08:42. | |
to a boost in household spending and we know that Australia's been | :08:43. | :08:45. | |
struggling for growth since the mining boom tapered off mainly due | :08:46. | :08:50. | |
to that slowdown in China. But this time, we're seeing service based | :08:51. | :08:56. | |
industries, finance, retail, trade industries all contributing to | :08:57. | :08:59. | |
growth and natural gas and the commodity exports that we saw a | :09:00. | :09:04. | |
slowdown in. Economists saying the latest growth figures should reduce | :09:05. | :09:07. | |
the need for further interest rate cuts and it might help boost the | :09:08. | :09:12. | |
chances of current Prime Minister Malcolm Turnbull who is trying to | :09:13. | :09:15. | |
defend his Government against the Labour Party ahead of an election in | :09:16. | :09:21. | |
a month's time on 2nd July. Thank you very much indeed. | :09:22. | :09:25. | |
Looking at the Asian markets - the Nikkei ending Wednesday | :09:26. | :09:27. | |
Doesn't seem to have been boosted by that expected delay | :09:28. | :09:31. | |
to the increase in sales tax in Japan. | :09:32. | :09:33. | |
Of course that hasn't yet been officially announced. | :09:34. | :09:35. | |
Perhaps the Asian markets tracking the weakness | :09:36. | :09:42. | |
of shares on Wall Street which were down on Tuesday, | :09:43. | :09:47. | |
as investors in the US brace for a possible rise in interest | :09:48. | :09:51. | |
Michelle Fleury has the details about what's ahead | :09:52. | :09:57. | |
As one trader told me me, this Wednesday is all about the Ms. Wall | :09:58. | :10:07. | |
Street will be paying close attention to China's manufacturing | :10:08. | :10:11. | |
index as they try to get a fix on global economic conditions. Closer | :10:12. | :10:14. | |
to home, investors will be keeping an eye on the institute for supply | :10:15. | :10:20. | |
management's manufacturing index. In spite of tepid demand from abroad | :10:21. | :10:23. | |
and a strong dollar, the report is expected to show the sector expanded | :10:24. | :10:30. | |
for a third straight month in May. The ought owe industry has been a | :10:31. | :10:34. | |
bright spot for the economy, ranging up record sales in the US last year | :10:35. | :10:38. | |
and it continues to do well. Sales for May are expected to total 17.3 | :10:39. | :10:43. | |
million for the month, but analysts suggest that the rate of increase in | :10:44. | :10:49. | |
sales is starting to slow and that car-makers are beginning to rely on | :10:50. | :10:51. | |
higher discounts to boost demand. Maike Currie, investment director | :10:52. | :10:55. | |
at Fidelity International. Maike. Good to see you. He will | :10:56. | :11:11. | |
delay the increase from 8% to 10%. It was supposed to come in next | :11:12. | :11:15. | |
year, right, he will delay it two years, late 2019. That's a market | :11:16. | :11:20. | |
story. I was looking at factory activity in ash yasmt it is not good | :11:21. | :11:24. | |
news. All these countries, the factory-driven economies if you | :11:25. | :11:28. | |
will, churning up stuff around the world we buy, down for the month of | :11:29. | :11:33. | |
May again. China, world's second largest economy, barely improved | :11:34. | :11:37. | |
last month. It ain't looking pretty, is it? No, lots of market attention | :11:38. | :11:44. | |
is focussed on the UK's EU referendum and of course, the Fed's | :11:45. | :11:48. | |
decision on interest rates. It is easy to forget about the other big | :11:49. | :11:52. | |
concern which, of course is China. In light of this, the Chinese | :11:53. | :11:56. | |
figures coming out later this week are really important. Of course... | :11:57. | :12:03. | |
The PMI. These are forward looking numbers. That's right. That should | :12:04. | :12:11. | |
give us an idea how confident Chinese manufacturers? Yes. Still in | :12:12. | :12:22. | |
deflationary terry. This is a number the ECB will probably reference | :12:23. | :12:26. | |
tomorrow when it makes its announcements on interest rates. The | :12:27. | :12:30. | |
expectation is for no change, but Japan, Europe still in deflationary | :12:31. | :12:34. | |
territory and the question is how do we kick-start the economies? We're | :12:35. | :12:38. | |
going to leave it there. I know you're coming back for the papers. | :12:39. | :12:42. | |
The European Central Bank, a key function of a Central Bank is to | :12:43. | :12:45. | |
control inflation, right? That's right. They should be more on to | :12:46. | :12:51. | |
that, some say! Still to come: And we'll be talking | :12:52. | :12:54. | |
to entrepreneur Lloyd Dorfman, who founded the firm, | :12:55. | :12:57. | |
Travelex, back in 1976. It's now the world's biggest | :12:58. | :12:59. | |
foreign exchange retailer. It's the first day of trading for | :13:00. | :13:10. | |
the new owners of Tata Steel's Long The plant was under threat | :13:11. | :13:18. | |
of closure before Greybull Capital stepped in and agreed to buy it | :13:19. | :13:22. | |
for ?1 a few weeks ago. Rob Young is in our business | :13:23. | :13:25. | |
newsroom. Rob good to see you. Rob, a new | :13:26. | :13:35. | |
brand, but surely many are asking really, is it a new dawn for British | :13:36. | :13:39. | |
Steel? Well, this is a rarebit of good news for an industry which has | :13:40. | :13:42. | |
been in crisis for the past couple of years. We have had thousands of | :13:43. | :13:46. | |
job losses in the UK steel industry. The SSI steelworks on Teesside | :13:47. | :13:53. | |
closed as well. And this, part of Tata Long products division which | :13:54. | :13:56. | |
makes railway lines for Network Rail for example was bought by a turn | :13:57. | :14:02. | |
around company for just ?1. It says it will invest ?400 million and says | :14:03. | :14:08. | |
that its plan to turn around the business is bearing fruit. They say | :14:09. | :14:12. | |
over the past couple of months, the company made a profit at an | :14:13. | :14:16. | |
operating level, that's down to the recent rise in the steel price which | :14:17. | :14:21. | |
we have seen, but also the fact that the 4800 workers agreed to take a | :14:22. | :14:24. | |
pay cut and accept a reduced pension contributions as well. | :14:25. | :14:29. | |
Rob, thank you for that update. We appreciate it. We'll talk to you | :14:30. | :14:31. | |
soon. Rob Young there. You have not been buying enough | :14:32. | :14:43. | |
Lycra. Apparently not. Sales of cycling kit have fallen. Bikes, | :14:44. | :14:50. | |
pumps, Lycra outfits. It is the weather. It is a technical British | :14:51. | :14:57. | |
story! House prices edging higher for the | :14:58. | :15:04. | |
month of May. Up 0.2%. The average price of a house, what do you think | :15:05. | :15:08. | |
it is? It is right there. About 200,000. Good guess! Funny that! | :15:09. | :15:18. | |
That is according to nationwide. This is the business life page we're | :15:19. | :15:23. | |
looking at. We have British Steel, of course. It does have a story we | :15:24. | :15:28. | |
are going to touch on shortly, M, stopping the music. | :15:29. | :15:32. | |
People have been complaining about the noise. Distracting while you are | :15:33. | :15:38. | |
trying to make a purchases. Is it a nail in the Coffin for M? | :15:39. | :15:46. | |
You're watching business life. Our top story, laden with debt, a | :15:47. | :15:53. | |
shrinking economy, can Brazil's interim president dragged that | :15:54. | :15:57. | |
country back into growth? We are expecting the latest figures | :15:58. | :15:58. | |
to be released in a few hours. It's the age of the disruptor - | :15:59. | :16:02. | |
from AirBnB to Uber - all challenging established norms, | :16:03. | :16:07. | |
and in some cases turning One entrepreneur who's been | :16:08. | :16:11. | |
particularly good at spotting market changes and providing people | :16:12. | :16:20. | |
with a service they didn't know In 1976, he launched the first | :16:21. | :16:23. | |
Travelex bureau in London. Forty years on it has | :16:24. | :16:27. | |
become the world's biggest In 2010, he brought a stake | :16:28. | :16:29. | |
in The Office Group, which provides flexible work space | :16:30. | :16:35. | |
to thousands of start-ups And in 2014, he co-founded Doddle, | :16:36. | :16:37. | |
which lets customers have online packages delivered to their location | :16:38. | :16:42. | |
rail station where Businessman and philanthropist | :16:43. | :16:46. | |
Lloyd Dorfman joins us. I was reading some of your | :16:47. | :17:02. | |
background. This is your words. You said at school you are quite | :17:03. | :17:06. | |
mediocre. You are not a genius but you were not an idiot. You failed | :17:07. | :17:12. | |
economics, you did not go to university, in 1976 you opened a | :17:13. | :17:18. | |
pure discharge. How do you go from that? A lot of hard work, a lot of | :17:19. | :17:23. | |
persistence, a lot of self belief. And it was a time when I think the | :17:24. | :17:28. | |
big banks traditionally provided these services. This was not a core | :17:29. | :17:33. | |
business for them. The euro came in and they were less interested. We | :17:34. | :17:38. | |
always saw the euro as -- an opportunity than threat. | :17:39. | :17:44. | |
Is there anything at the moment, a niche that has not been to -- that | :17:45. | :17:51. | |
has not been filled... Obviously you are not pretty tell us what it is! | :17:52. | :17:56. | |
Is there something at the moment that someone is not doing? Not at | :17:57. | :18:03. | |
the moment. But we are looking at some new businesses. Some | :18:04. | :18:05. | |
interesting new photographer the Rio Grande to launch it the next few | :18:06. | :18:12. | |
months. Watch this space. Click and collect is not really new. Nobody | :18:13. | :18:20. | |
has cracked the problem. This is Doddle we are talking about. One of | :18:21. | :18:25. | |
my bugbears. Most of us consumers are big online purchasers. It is a | :18:26. | :18:36. | |
pain to send it off. You are a co-founder of this, right? You got | :18:37. | :18:40. | |
together and you thought, there is a little hole? This was originally an | :18:41. | :18:44. | |
idea being looked at by Network Rail. They came to me to partner | :18:45. | :18:49. | |
with them. I bought them out about six months ago. And we are building | :18:50. | :18:55. | |
and developing as a business. The real inside here as far as the | :18:56. | :18:58. | |
retail network is concerned is for people to be able to do this at | :18:59. | :19:02. | |
convenient commuter locations. On your way to work you can return | :19:03. | :19:06. | |
things. On your way to work you can collect things. Doddle is growing | :19:07. | :19:13. | |
into quite a powerful IT capability, to really drive click and collect | :19:14. | :19:17. | |
for retailers as well as consumers. Your other businesses the office | :19:18. | :19:21. | |
group which provides space for start-ups and new companies. How was | :19:22. | :19:26. | |
the climate for people starting out? Easier or harder than when you | :19:27. | :19:31. | |
started? Think it is easier, principally through technology. You | :19:32. | :19:35. | |
can start a business from your bedroom. Last year we had a record | :19:36. | :19:38. | |
number of businesses started in this country. People used to refer to us | :19:39. | :19:45. | |
as a nation of shopkeepers. Perhaps it is a nation of entrepreneurs now. | :19:46. | :19:49. | |
It is technology. You do not need bricks and mortar snout. No, you can | :19:50. | :19:56. | |
sit at home and do it. I am curious about your background. In 1973 you | :19:57. | :20:05. | |
went into an investment bank with no experience, no qualifications. 73. | :20:06. | :20:12. | |
Can you remind viewers around the world and those perhaps here in | :20:13. | :20:19. | |
Britain, what happened in 73? Within three months we had a quadruple in | :20:20. | :20:24. | |
the oil price overnight, strikes, three-day working weeks, the | :20:25. | :20:27. | |
collapse of the stock market, the property market, the collapse of the | :20:28. | :20:34. | |
government, strikes... A baptism of fire. Absolutely. I went to do this | :20:35. | :20:41. | |
to get as much commercial experience in a short time. But it was an | :20:42. | :20:46. | |
incredible apprenticeship. I would going to meetings were not only the | :20:47. | :20:53. | |
borrowers were in trouble, the bank was in trouble, the Bank of England | :20:54. | :20:55. | |
was trying to hold things together. It was a great apprenticeship. | :20:56. | :21:00. | |
Quickly, that is what is giving you the tools to go forward? Yes, it was | :21:01. | :21:10. | |
a great insight for me. I have is -- I have always loved business. When | :21:11. | :21:14. | |
you have been through that -year-old Frannie Challis. What was it about | :21:15. | :21:18. | |
the exchange market that piqued your interest? We were coming into 1977, | :21:19. | :21:25. | |
I thought it would be an interesting thing to do. It became a global | :21:26. | :21:33. | |
business. We appreciate your time. Thank you. An honorary Australian, | :21:34. | :21:43. | |
by the way. He loves Australia, don't you? I do. You have got to | :21:44. | :21:55. | |
sponsor the cricket team. In a moment, the business pages. First, a | :21:56. | :21:58. | |
quick reminder of how to get in touch. | :21:59. | :22:00. | |
The business life pages where you can stay ahead with the breaking | :22:01. | :22:03. | |
business news. We will keep you up-to-date with the latest details, | :22:04. | :22:08. | |
with insight and analysis from the team of editors around the world. | :22:09. | :22:13. | |
And we want to hear from you. Get involved on the bees -- -- BBC | :22:14. | :22:15. | |
business life page. We got about one half minutes. M | :22:16. | :22:41. | |
Music. Thank you for tweeting in. Don says music is the least of the | :22:42. | :22:49. | |
problems for M Bring back good womenswear. Sally in France saying | :22:50. | :23:00. | |
music is for a start. A big turn-off. Rubbish is what it | :23:01. | :23:07. | |
generally is. It is an interesting story in light | :23:08. | :23:11. | |
of the insolvencies we have seen on the high street with Austin Reed, | :23:12. | :23:16. | |
BHS. The retailers are under tremendous pressure. They are either | :23:17. | :23:19. | |
going to have to compete on price, like the discounters, primer, Lidl | :23:20. | :23:26. | |
etc, or they have to compete on experience, like the Apple Store. | :23:27. | :23:32. | |
M is doing neither this moment. The problem a lot of customers have | :23:33. | :23:36. | |
is that it had not -- has not changed in 22 years. An interesting | :23:37. | :23:41. | |
decision. They will save some money. Is this rarely what customers want? | :23:42. | :23:48. | |
If they want to appeal to a younger customer base... When you are | :23:49. | :23:52. | |
listening to music time seems to go more quickly. If you are in a shop | :23:53. | :23:56. | |
and the music is playing, you lose track of time. Yes, I think it adds | :23:57. | :24:01. | |
to the experience. I enjoy the music. One of our producers said | :24:02. | :24:08. | |
they do not have clocks in shops. You lose track of time. They do in | :24:09. | :24:14. | |
the homeware department but they are set to different times. It is like | :24:15. | :24:18. | |
pumping fresh air into a Las Vegas casino. What is next? Are you | :24:19. | :24:25. | |
interested in oil? Let's talk about it. The Opec meeting is on Thursday. | :24:26. | :24:34. | |
Investors will be keeping a close eye on this. It is all about supply | :24:35. | :24:39. | |
and demand. Supply has been corrected with things like the | :24:40. | :24:42. | |
wildfires in Canada and military action in Nigeria. The discovery of | :24:43. | :24:49. | |
new oil wells, which is dropped off immensely. The consensus is there | :24:50. | :24:54. | |
will be no co-ordinated cut. No surprises there. That is presumably | :24:55. | :25:00. | |
until the shale companies realise the price has gone up. We will not | :25:01. | :25:07. | |
see oil passing the $100 mark again but we could see at stabilising at | :25:08. | :25:10. | |
$60 per barrel, a far cry from where it was earlier this year. Very | :25:11. | :25:18. | |
quickly, that last newspaper story. It seems that in 2015, the world | :25:19. | :25:25. | |
loved to travel. We like to travel more than we like to buy stuff? That | :25:26. | :25:31. | |
is right. The two main markets are the US and China. The amount of | :25:32. | :25:34. | |
Chinese tourists travelling the world has increased since 2004, | :25:35. | :25:40. | |
which is a remarkable number. Just last year alone they increased their | :25:41. | :25:44. | |
spending by 25%. That is a major factor driving the economy. | :25:45. | :25:52. |