:00:00. > :00:07.This is Business Live from BBC News with Alice Baxter
:00:08. > :00:26.With just three days to go until the UK decides if it
:00:27. > :00:28.making their views on the vote increasingly clear.
:00:29. > :00:31.Should you listen to them though or do the voices of small
:00:32. > :01:00.Live from London, that's our top story on Monday 20th June.
:01:01. > :01:12.Several big car manufacturers have written to their staff recommending
:01:13. > :01:17.week stay in the EU. Also in the programme: Markets wobble in India
:01:18. > :01:22.and the ruble falls as research for a new governor of the Indian bank.
:01:23. > :01:25.We will bring you the latest from the markets as well. A sea of green
:01:26. > :01:27.arrows across the board with Europe tracking Asia higher at the start of
:01:28. > :01:31.referendum week. It may only be Monday
:01:32. > :01:34.morning here in London, but it's never too early for gin
:01:35. > :01:37.and tonic on Business Live. Later in the show, the boss of one
:01:38. > :01:40.of the UK's fastest growing alcohol brands will be speaking to us
:01:41. > :01:54.about the renaissance And when Elon musk was asked for a
:01:55. > :01:58.family discount, he had a cutting response. Everybody gets a family
:01:59. > :01:59.discount, the price on the website. So what is the best discount you
:02:00. > :02:02.have been able to get? Let us know. With just three days of campaigning
:02:03. > :02:16.to go until the UK's referendum on its EU membership,
:02:17. > :02:21.business and economic voices have been ramping up their support
:02:22. > :02:26.for both sides of the campaign. Today the bosses of Nissan,
:02:27. > :02:31.Jaguar Land Rover and Toyota have written to their staff for the first
:02:32. > :02:34.time to say that remaining in Europe Vote Leave issued a detailed
:02:35. > :02:41.rebuttal of the industry's claims, citing several comments by car
:02:42. > :02:46.executives who said Brexit would not They add that many car company
:02:47. > :02:57.executives had urged Britain to join the Euro and, "They were wrong then
:02:58. > :03:00.and they are wrong now." On Sunday, the chief executive
:03:01. > :03:05.of energy giant EDF Energy, Vincent de Rivaz, wrote to his UK
:03:06. > :03:08.staff outlining what he says are the benefits of
:03:09. > :03:12.continued EU membership. And earlier this month Lord Bamford,
:03:13. > :03:16.chairman of JCB, one of Britain's most successful manufacturers,
:03:17. > :03:20.wrote to his company's 6,500 employees in the UK to explain
:03:21. > :03:23.why he favours a vote This morning's Times newspaper
:03:24. > :03:35.is also reporting that much of London's lucrative trade in Euro
:03:36. > :03:38.denominated currency could leave the capital for other financial hubs
:03:39. > :03:41.inside the EU if the UK votes Richard Fletcher, business editor
:03:42. > :03:56.of The Times is with me. Let's make sense of all of this. The
:03:57. > :04:01.clock is ticking in earnest now. Tell us about your article in the
:04:02. > :04:05.times newspaper today about Euro dominated trade at what it means for
:04:06. > :04:10.the City of London. Add to move closer and the polls are neck and
:04:11. > :04:14.neck, people are thinking about the implications of a Remain and a Leave
:04:15. > :04:21.vote. We are looking at whether London could lose its domination. A
:04:22. > :04:28.third of these instruments are traded in London. There was a long
:04:29. > :04:30.court battle with the ECB about whether the trading should be in
:04:31. > :04:36.London and the City of London, backed by the government, won that.
:04:37. > :04:40.The question is whether we opted to leave the EU, whether there will be
:04:41. > :04:44.a renewed assault on that trading, and whether Europe would try to pull
:04:45. > :04:47.some of that back to the continent. It is part of wider noise and in the
:04:48. > :04:51.coming days we will see more business leaders coming out and
:04:52. > :04:57.airing their views on both sides of the debate, particularly on the
:04:58. > :05:03.Remain side, I suspect, because big business is in favour of Remain and
:05:04. > :05:09.the CBI poll shows that their members want to remain. With smaller
:05:10. > :05:13.businesses it is more balanced. In the coming days, I think we will see
:05:14. > :05:16.business leaders coming out and voicing their opinions. They are
:05:17. > :05:20.voicing opinion that writing to staff and members of their
:05:21. > :05:25.associations. Do we know what influence that has? If you work for
:05:26. > :05:30.British Telecom and you get the letter from the boss telling you to
:05:31. > :05:35.vote Remain, how do people respond to that? We don't have evidence but
:05:36. > :05:42.we had Rolls-Royce warning that they would have to reconsider investment
:05:43. > :05:46.in a new plant in Derby if there was a Leave vote. I suspect that would
:05:47. > :05:49.have an effect if you worked for Rolls-Royce and it certainly would
:05:50. > :05:54.on me. I think business leaders wanted to stay out of this. They
:05:55. > :05:58.were very bruised after the Scottish referendum. You remember the
:05:59. > :06:02.supermarket bosses and the financial employers in Scotland came out and
:06:03. > :06:09.back to the union and they suffered a backlash. I suspect that big
:06:10. > :06:13.businesses hope that by now a Remain vote would have been in the bag they
:06:14. > :06:16.wouldn't have to put their heads above the parapet. But with the boat
:06:17. > :06:22.being neck and neck that when you talk to them privately big business
:06:23. > :06:26.does believe that we should remain, although that is not the case across
:06:27. > :06:30.the business community, many believe that, and so they are putting their
:06:31. > :06:35.heads above the parapet because it is neck and neck. We are out of time
:06:36. > :06:39.so we have got to move on. But Richard is coming back to look at
:06:40. > :06:41.the newspapers later. Don't fret. Let's squeeze in other stories. This
:06:42. > :06:49.is always a pact programme. Xi Jinping has arrived in Poland,
:06:50. > :06:52.as part of a 3-nation tour, aimed at strengthening ties
:06:53. > :06:54.between China and Europe. The Chinese President will be
:06:55. > :06:56.meeting with his counterpart in Warsaw, as well as
:06:57. > :06:58.the country's Prime Minister. The 2 sides are expected to sign
:06:59. > :07:01.agreements in areas such as finance, Before Poland he was in Serbia and
:07:02. > :07:16.he had to Uzbekistan next. Brazilian prosecutors have made
:07:17. > :07:18.a formal allegation of tax evasion and money laundering against former
:07:19. > :07:22.tourism minister Henrique Alves. Mr Alves resigned on Thursday after
:07:23. > :07:25.being linked to a corruption scheme. Brazil's Attorney General presented
:07:26. > :07:27.evidence to the Supreme Court saying Mr Alves had a secret bank
:07:28. > :07:29.account in Switzerland. Let's take a look round the world
:07:30. > :07:37.at what business stories We learnt over the weekend
:07:38. > :07:42.that Raghuram Rajan, the governor of India's central
:07:43. > :07:45.bank, has decided to step down. We can now hear from Sameer Hashmi
:07:46. > :07:57.in Mumbai, who has been Does this come as much of a
:07:58. > :08:02.surprise? Yes. Many anticipated that he would get a second term or who
:08:03. > :08:06.would accept a second term when his current tenure comes to an end in
:08:07. > :08:12.September. There was speculation over the last few months or so that
:08:13. > :08:19.the government was not keen to give him a second term because they
:08:20. > :08:22.disagree on a lot of policies. And Mr Rajan has been critical of the
:08:23. > :08:28.government when it comes to certain policies, particular fast economic
:08:29. > :08:32.growth in India. He did not comment openly on whether he would like a
:08:33. > :08:35.second term or not but most expected that he would like a second term
:08:36. > :08:42.because there is so much global uncertainty with Brexit coming in,
:08:43. > :08:45.the US raising rates, and also India had issued dollar bonds three years
:08:46. > :08:49.back to stabilise the currency. They are going to mature so a lot of
:08:50. > :08:55.dollars will flow out of the Indian market which will lead to a bit of
:08:56. > :08:58.instability. But Mr Rajan said on Saturday that with consultation with
:08:59. > :09:02.the government and after due reflection, he has decided to go
:09:03. > :09:07.back to Chicago, where he is a professor. This is if the price
:09:08. > :09:10.because most experts, analysts and economists and business leaders that
:09:11. > :09:19.we talk to wanted him to stay on. He is seen as a credible face and
:09:20. > :09:22.industry leaders have a lot of regard for him. He has been given
:09:23. > :09:28.credit for bringing down inflation, which is a critical issue for the
:09:29. > :09:32.economy when he took charge three years back. He is also cleaned up
:09:33. > :09:35.the balance sheets for a lot of banks in India which have a lot of
:09:36. > :09:38.debt on their books. Clearly it has come as a shock.
:09:39. > :09:44.And with just three days to go before that UK EU referendum,
:09:45. > :09:48.it's not just Britain or Europe on a knife edge with traders around
:09:49. > :09:53.US stock index futures rose on Sunday
:09:54. > :09:58.jumped on Monday on the back of polls suggesting British voters
:09:59. > :10:07.Japan's Nikkei soared over 2% to a one-week high on Monday,
:10:08. > :10:14.posting the biggest daily gain in two months.
:10:15. > :10:17.Very interesting considering the wobbles it has had over the past
:10:18. > :10:22.week. The safehaven yen also
:10:23. > :10:24.weakened on the uptick And here in Europe, sterling has
:10:25. > :10:28.been at the sharp end of investors' worries over a possible UK exit
:10:29. > :10:31.from the EU, falling nearly 5 percent against the dollar this year
:10:32. > :10:33.and nearly 9 percent But today it's jumped
:10:34. > :10:36.by the most in 3 days. Looking at equities,
:10:37. > :10:38.all major European markets up over 1.7% - that's
:10:39. > :10:43.after rebounding on Friday but still posting it's third
:10:44. > :10:47.straight week of losses. And Samira Hussain has
:10:48. > :10:56.the details about what's ahead A few things happening this week to
:10:57. > :11:01.keep us busy in the US. Facebook will be having their shareholder
:11:02. > :11:04.meeting on Monday, voting on a new class of stock which will encourage
:11:05. > :11:10.the founder Mark Zuckerberg to remain in an active leadership role.
:11:11. > :11:15.On Tuesday and Wednesday, US Federal reserve chair will be speaking to
:11:16. > :11:19.members of conference. This is her semiannual testimony on monetary
:11:20. > :11:23.policies. On Thursday Britain will be voting in a referendum on whether
:11:24. > :11:29.to leave the European Union. The impending vote has been having an
:11:30. > :11:33.impact on US markets and so investors here will be watching that
:11:34. > :11:38.closely. And on Friday we will see how confident Americans are feeling
:11:39. > :11:44.when the consumer sentiment is out for the month of June.
:11:45. > :11:49.Joining us is Fung Siu from the Econimist Intelligence Unit.
:11:50. > :11:54.She is here to talk to us about what is going on in Japan. While these
:11:55. > :11:59.markets have been severely on the move, we had a big week for Japan
:12:00. > :12:05.last week. News from International Monetary Fund saying that policy
:12:06. > :12:08.needs to be changed. Yet today we have had trade numbers from Japan
:12:09. > :12:12.that are pretty dismal as well. Give us your take on how this is being
:12:13. > :12:21.managed in Japan right now. They are watching the currency very
:12:22. > :12:29.carefully. Absolutely. The government has an economic agenda on
:12:30. > :12:32.the go. They have done what most policymakers would do in straitened
:12:33. > :12:37.times, which they see themselves in at the moment, which is basically to
:12:38. > :12:44.use monetary policy and fiscal policy. Monetary policy has gone
:12:45. > :12:47.into uncharted territory with a quantitative easing programme. At
:12:48. > :12:53.the same time with fiscal policy there are limits to what they can do
:12:54. > :12:58.because Japan has huge public debt, about 230% of GDP, 2.3 times the
:12:59. > :13:02.size of the country's output. There is very little that he can do on the
:13:03. > :13:06.fiscal front but nevertheless I suspect he will carry on trying.
:13:07. > :13:12.With all these policies in place, he is doing his best to try and get the
:13:13. > :13:15.economy on the move. But in normal circumstances, all these policies
:13:16. > :13:20.would work but he is facing considerable headwinds. China
:13:21. > :13:25.slowing down is affecting exports so the trade numbers have been banned
:13:26. > :13:28.because of the slow down in China. Had these policies being put in
:13:29. > :13:35.place when China was expanding at rapid rates of eight or 9%, Japan
:13:36. > :13:38.wouldn't have had any problems. Trade numbers are coming out week
:13:39. > :13:42.because of the weak demand from China. There is a suggestion from
:13:43. > :13:48.the IMF that they need to raise the sales tax in the country from 8% to
:13:49. > :13:57.at least 15% to make a change. They did try. It had a bad effect. That
:13:58. > :14:01.is because the economy is so fragile and consumer sentiment is so weak.
:14:02. > :14:06.It sent the economy into a downtrend. Yes, they need to
:14:07. > :14:11.increase the consumption tax only because they need to get in revenue
:14:12. > :14:14.to pay the welfare payments because they have an ageing population. The
:14:15. > :14:18.tax increases will come much later on. In the meantime, they will try
:14:19. > :14:24.their best to put in place measures that will boost the economy as much
:14:25. > :14:28.as possible. We wish them luck! It is not easy. Thank you for your
:14:29. > :14:33.time. Keeping an eye on Japan, especially with regards to the yen.
:14:34. > :14:38.Still to come on the programme: It may only be 8:45am in London but it
:14:39. > :14:48.is never too early for June the clock. -- gin and tonic. We are
:14:49. > :15:01.finding out how gin has become a global business.
:15:02. > :15:06.Ben Thompson is in the city. He has been speaking to experts about what
:15:07. > :15:10.is happening. Ben what, have you been hearing? Before I start can I
:15:11. > :15:14.say the gin better come down here when you try that later! You're
:15:15. > :15:19.right, we're in the centre of the financial heart of the country. The
:15:20. > :15:24.City of London. Just a Square Mile, but what happens this week could be
:15:25. > :15:27.important for its future. They are keeping an eye on what the polls are
:15:28. > :15:31.saying in the run up to the vote. Some certainty, we will get a result
:15:32. > :15:34.on Friday, but many suggests that's when the real uncertainty begins
:15:35. > :15:39.when we try and work out what happens next. This really tells you
:15:40. > :15:44.all you need to know. "Hold on to your hats, markets braced for
:15:45. > :15:47.referendum turmoil." That's in the City AM, the business paper this
:15:48. > :15:51.morning. I want to show you around a bit. If you're not familiar with
:15:52. > :15:55.where we are. You can see the Royal Exchange. It has been at the centre
:15:56. > :15:59.of the city for hundreds of years. Originally built on the site in the
:16:00. > :16:02.1700s, it was home to traders from around the world, selling their
:16:03. > :16:06.wares. Just across the road from that, the Bank of England, of
:16:07. > :16:09.course, home to the governor and the Monetary Policy Committee. Amongst
:16:10. > :16:14.other things it does set interest rates, but behind it, you might be
:16:15. > :16:22.able to make it out in the mist and the rain, the new city, the
:16:23. > :16:29.skyscrapers that are changing the city skyline, the Gherkin and it
:16:30. > :16:32.contributes to the ?50 billion or so to the UK economy every year. So
:16:33. > :16:37.those people will be keeping a close eye on the vote on Thursday. To find
:16:38. > :16:42.out what it means for them, but also for the country as a whole. Yes, of
:16:43. > :16:45.course, Ben this is a really big week for the city, isn't it, with
:16:46. > :16:51.its oddly aimed buildings out there, it is not just a big political week
:16:52. > :16:53.at all? Yeah, it will be felt particularly keenly, I know Alice
:16:54. > :16:58.you touched on it earlier. I will talk you through the numbers,
:16:59. > :17:02.sterling up 1.5% and the FTSE up 2%. They are keeping a close eye on what
:17:03. > :17:05.happens. They will be hoping for some certainty, but the uncertainty
:17:06. > :17:09.could really begin on Friday morning.
:17:10. > :17:25.That's what the markets like the least. You may not get any gin, our
:17:26. > :17:29.producers have got their tabs on it. Majestic's sales are up.
:17:30. > :17:32.Our top story: Several of the UK's biggest car
:17:33. > :17:34.manufacturers including Nissan, Jaguar Land Rover and Toyota have
:17:35. > :17:37.written to their staff, advising them to back Britain's
:17:38. > :17:46.A lot of smaller business leaders, those who run small companies, who
:17:47. > :17:50.are self-employed, they have an opposite few, quite a few of them
:17:51. > :17:54.and there is plenty of the views on both sides on our website. Do dig in
:17:55. > :17:56.deep and read to have a lack at what's being said. Just head online
:17:57. > :17:58.for that. Now let's get the Inside Track
:17:59. > :18:02.on Britain's booming gin industry. Overseas sales are now worth over
:18:03. > :18:05.?2 billion - that's around $2.9 billion and sales are up
:18:06. > :18:09.some 46% since 2010. Brockmans is one of the boutique
:18:10. > :18:13.distilleries that's benefiting from the UK's renaissance
:18:14. > :18:17.as a gin-maker. The company's super-premium spirit
:18:18. > :18:21.is one of the fastest growing Outside of the UK,
:18:22. > :18:26.Brockmans is available in 40 This includes export markets
:18:27. > :18:30.both inside and outside The distillery is performing
:18:31. > :18:34.particularly well Bob Fowkes, CEO of
:18:35. > :18:47.Brockmans Gin joins us now. And you can see the big bottle,
:18:48. > :18:52.thick glass, that's part of the brand on the table and two glasses
:18:53. > :18:57.of gin. So whilst he is answering our first question we will test it!
:18:58. > :19:02.I haven't tested it yet! But just give us a sense of this brand
:19:03. > :19:07.because that is your area of expertise Bob, it is selling a brand
:19:08. > :19:11.and when it comes to gin, most people have heard of various
:19:12. > :19:15.companies. But not this one. It is fairly new. Tell us how you managed
:19:16. > :19:20.to get it out there? We launched in 2009. Firstly, you're right, my
:19:21. > :19:26.focus is brand development. That's my background. I'm the marketing
:19:27. > :19:30.Director of Brockmans Gin, my CEO will be pleased I pointed that out!
:19:31. > :19:36.Our apologies. I'm one of the founders. I started this from a
:19:37. > :19:41.blank sheet of paper and what's important is to aid develop a great
:19:42. > :19:45.product and B, develop a great brand and to develop them in Unison. A lot
:19:46. > :19:49.of companies develop them separately and it is important to combine them
:19:50. > :19:52.together. A brand is a story. A story that you're showing to
:19:53. > :19:57.consumers. You say it is a great product and you say that that it is
:19:58. > :20:02.particularly specialist, it would have to be because it is kind of
:20:03. > :20:05.double the price of the gins that we all know of that are on the
:20:06. > :20:15.supermarket shelves, the names we are familiar with. . This is double
:20:16. > :20:20.the price? We are batch distilled. We are craft disstilled. We use
:20:21. > :20:25.natural ingredients. We use 11 which really makes for a great tasting
:20:26. > :20:30.product. And you're currenty in Europe, aren't you? Are you looking
:20:31. > :20:35.at other markets? We are in Europe, North America and Australia and one
:20:36. > :20:39.of the interesting areas has been the boom in gin that happened at the
:20:40. > :20:42.luxury end has come from Spain and Spain is starting to influence the
:20:43. > :20:48.Latin American markets and we are starting to look at those as well.
:20:49. > :20:52.Do people drink their gin differently? No, the Spanish led the
:20:53. > :20:57.way and the glasses that you have in front of you, the wide, almost
:20:58. > :21:03.balloon glasses... They are lovely glasses. They were developed in
:21:04. > :21:08.Spain. Spain is a big market for gin, bigger than the UK. The amount
:21:09. > :21:12.of drink in there. The key is to use lots of very big ice in a glass like
:21:13. > :21:17.that. It is probably a double roughly a double. But it looks more
:21:18. > :21:22.because it is a very big glass. But actually the key is to add lots of
:21:23. > :21:26.ice to keep it really cool and refreshing for as long as you can.
:21:27. > :21:30.Can I just ask you though, if you weren't on board with this company,
:21:31. > :21:35.somebody who had years and years of experience of managing brands within
:21:36. > :21:39.this industry, you worked for Diego for sometime, do you think they
:21:40. > :21:43.would be where they are,000? I'm not saying it is all about you, but I'm
:21:44. > :21:46.suggesting it is all about the marketing isn't it as opposed to the
:21:47. > :21:51.quality of the product? There is lots of products out there and there
:21:52. > :21:55.is lots of people develop new gins and they tend to be just products.
:21:56. > :22:00.You need to have a great product and you need to develop a great brand in
:22:01. > :22:05.tandem. I imagine many people watching now who have something they
:22:06. > :22:09.think you develop a story. Today think you develop a story. Today
:22:10. > :22:13.with a lot of social media, digital marketing, you have to have a story.
:22:14. > :22:16.You develop a story that's plausible, believable, relevant and
:22:17. > :22:20.motivating to consumers. From there you can develop their product and
:22:21. > :22:25.your branding, your packaging. So everything needs to work in Unison.
:22:26. > :22:33.It is not just a phase this love of gin? It is a boom that's here to
:22:34. > :22:35.stay. Hopefully for you! LAUGHTER
:22:36. > :22:40.All right Bob, we have to leave it there. We have got to have a taste.
:22:41. > :22:47.Cheers! Well, there we go. Very nice. Very
:22:48. > :22:52.refreshing. I don't normally have gin at this time of the morning!
:22:53. > :22:55.Now, it's just three days until voters here in Britain decide
:22:56. > :22:58.whether the UK should remain in the European Union or leave
:22:59. > :23:00.and we've been talking to small business leaders in the UK
:23:01. > :23:02.and Europe to find out what they believe
:23:03. > :23:05.Guy Sainty runs the Stair Sainty Gallery in London
:23:06. > :23:09.He feels that his business and the London art market
:23:10. > :23:11.is suffering because of EU VAT regulations.
:23:12. > :23:15.My wife and I run the Stair Sainty Gallery which specialises
:23:16. > :23:20.in European art from the 16th to the 20th century.
:23:21. > :23:23.Since 2006, the European Union required that the UK introduce
:23:24. > :23:29.import VAT for all works of art that come into this country
:23:30. > :23:40.Far fewer works are consigned from outside the European Union.
:23:41. > :23:44.It's just simply too expensive for us to handle works
:23:45. > :23:49.that are owned by say an American consigner.
:23:50. > :23:54.It has meant that London is essentially being replaced
:23:55. > :23:57.by New York as the major art dealing centre.
:23:58. > :24:00.If we leave the European Union and we remove the burden of import
:24:01. > :24:03.VAT, this will transform London and make it become the most
:24:04. > :24:27.Richard is back as you can see. Business editor of the Times. He has
:24:28. > :24:32.not been drinking gin. But I just want to mention tweets we have had
:24:33. > :24:38.from our viewers. One viewer got hold of me to say a lager at 45
:24:39. > :24:43.cents, you can't beat it! I don't think you can!
:24:44. > :24:48., "I don't get discounts, I haggle and get prices down in my old age."
:24:49. > :24:55.." Thrrchlts you go. Your favourite tipple. A pint of Guinness or a nice
:24:56. > :24:59.glass of red wine. I like all sorts. Let's talk about what is in the
:25:00. > :25:03.papers. Of course, interesting today, all the national papers in
:25:04. > :25:07.the UK and international press looking at this referendum, aren't
:25:08. > :25:10.they? Absolutely. There is a piece in the New York Times which is
:25:11. > :25:14.always interesting to see what people think of us overseas and I
:25:15. > :25:19.don't think we don't come out very well in the article. The Brits don't
:25:20. > :25:22.come out very well, I'm not sure Europe comes out very well. That's
:25:23. > :25:27.always interesting to see how, it is good to see how they interpret
:25:28. > :25:31.events overseas, that's very interesting piece actually in the
:25:32. > :25:34.New York Times. And saying whatever happens on 23rd June, Brussels have
:25:35. > :25:39.got to re-think the way they operate? There is a growing
:25:40. > :25:42.Euro-scepticism in other parts of Europe, not just in the UK. All
:25:43. > :25:46.right, well we are being told, we are nearly out of time. So Richard,
:25:47. > :25:52.we will let you go, you have got a busy week ahead of you. Yes, I have.
:25:53. > :25:55.And the weeks to come as do we. Thank you, we appreciate it.
:25:56. > :25:59.There will be more business news throughout the day on the BBC Live
:26:00. > :26:06.webpage and on World Business Report.
:26:07. > :26:16.Hello there. It is a leap year this year so today marks the summer
:26:17. > :26:18.solstice. Starting off cloudy and wet for many, but it is an improving
:26:19. > :26:19.picture