20/06/2016 BBC Business Live


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This is Business Live from BBC News with Alice Baxter


With just three days to go until the UK decides if it


making their views on the vote increasingly clear.


Should you listen to them though or do the voices of small


Live from London, that's our top story on Monday 20th June.


Several big car manufacturers have written to their staff recommending


week stay in the EU. Also in the programme: Markets wobble in India


and the ruble falls as research for a new governor of the Indian bank.


We will bring you the latest from the markets as well. A sea of green


arrows across the board with Europe tracking Asia higher at the start of


referendum week. It may only be Monday


morning here in London, but it's never too early for gin


and tonic on Business Live. Later in the show, the boss of one


of the UK's fastest growing alcohol brands will be speaking to us


about the renaissance And when Elon musk was asked for a


family discount, he had a cutting response. Everybody gets a family


discount, the price on the website. So what is the best discount you


have been able to get? Let us know. With just three days of campaigning


to go until the UK's referendum on its EU membership,


business and economic voices have been ramping up their support


for both sides of the campaign. Today the bosses of Nissan,


Jaguar Land Rover and Toyota have written to their staff for the first


time to say that remaining in Europe Vote Leave issued a detailed


rebuttal of the industry's claims, citing several comments by car


executives who said Brexit would not They add that many car company


executives had urged Britain to join the Euro and, "They were wrong then


and they are wrong now." On Sunday, the chief executive


of energy giant EDF Energy, Vincent de Rivaz, wrote to his UK


staff outlining what he says are the benefits of


continued EU membership. And earlier this month Lord Bamford,


chairman of JCB, one of Britain's most successful manufacturers,


wrote to his company's 6,500 employees in the UK to explain


why he favours a vote This morning's Times newspaper


is also reporting that much of London's lucrative trade in Euro


denominated currency could leave the capital for other financial hubs


inside the EU if the UK votes Richard Fletcher, business editor


of The Times is with me. Let's make sense of all of this. The


clock is ticking in earnest now. Tell us about your article in the


times newspaper today about Euro dominated trade at what it means for


the City of London. Add to move closer and the polls are neck and


neck, people are thinking about the implications of a Remain and a Leave


vote. We are looking at whether London could lose its domination. A


third of these instruments are traded in London. There was a long


court battle with the ECB about whether the trading should be in


London and the City of London, backed by the government, won that.


The question is whether we opted to leave the EU, whether there will be


a renewed assault on that trading, and whether Europe would try to pull


some of that back to the continent. It is part of wider noise and in the


coming days we will see more business leaders coming out and


airing their views on both sides of the debate, particularly on the


Remain side, I suspect, because big business is in favour of Remain and


the CBI poll shows that their members want to remain. With smaller


businesses it is more balanced. In the coming days, I think we will see


business leaders coming out and voicing their opinions. They are


voicing opinion that writing to staff and members of their


associations. Do we know what influence that has? If you work for


British Telecom and you get the letter from the boss telling you to


vote Remain, how do people respond to that? We don't have evidence but


we had Rolls-Royce warning that they would have to reconsider investment


in a new plant in Derby if there was a Leave vote. I suspect that would


have an effect if you worked for Rolls-Royce and it certainly would


on me. I think business leaders wanted to stay out of this. They


were very bruised after the Scottish referendum. You remember the


supermarket bosses and the financial employers in Scotland came out and


back to the union and they suffered a backlash. I suspect that big


businesses hope that by now a Remain vote would have been in the bag they


wouldn't have to put their heads above the parapet. But with the boat


being neck and neck that when you talk to them privately big business


does believe that we should remain, although that is not the case across


the business community, many believe that, and so they are putting their


heads above the parapet because it is neck and neck. We are out of time


so we have got to move on. But Richard is coming back to look at


the newspapers later. Don't fret. Let's squeeze in other stories. This


is always a pact programme. Xi Jinping has arrived in Poland,


as part of a 3-nation tour, aimed at strengthening ties


between China and Europe. The Chinese President will be


meeting with his counterpart in Warsaw, as well as


the country's Prime Minister. The 2 sides are expected to sign


agreements in areas such as finance, Before Poland he was in Serbia and


he had to Uzbekistan next. Brazilian prosecutors have made


a formal allegation of tax evasion and money laundering against former


tourism minister Henrique Alves. Mr Alves resigned on Thursday after


being linked to a corruption scheme. Brazil's Attorney General presented


evidence to the Supreme Court saying Mr Alves had a secret bank


account in Switzerland. Let's take a look round the world


at what business stories We learnt over the weekend


that Raghuram Rajan, the governor of India's central


bank, has decided to step down. We can now hear from Sameer Hashmi


in Mumbai, who has been Does this come as much of a


surprise? Yes. Many anticipated that he would get a second term or who


would accept a second term when his current tenure comes to an end in


September. There was speculation over the last few months or so that


the government was not keen to give him a second term because they


disagree on a lot of policies. And Mr Rajan has been critical of the


government when it comes to certain policies, particular fast economic


growth in India. He did not comment openly on whether he would like a


second term or not but most expected that he would like a second term


because there is so much global uncertainty with Brexit coming in,


the US raising rates, and also India had issued dollar bonds three years


back to stabilise the currency. They are going to mature so a lot of


dollars will flow out of the Indian market which will lead to a bit of


instability. But Mr Rajan said on Saturday that with consultation with


the government and after due reflection, he has decided to go


back to Chicago, where he is a professor. This is if the price


because most experts, analysts and economists and business leaders that


we talk to wanted him to stay on. He is seen as a credible face and


industry leaders have a lot of regard for him. He has been given


credit for bringing down inflation, which is a critical issue for the


economy when he took charge three years back. He is also cleaned up


the balance sheets for a lot of banks in India which have a lot of


debt on their books. Clearly it has come as a shock.


And with just three days to go before that UK EU referendum,


it's not just Britain or Europe on a knife edge with traders around


US stock index futures rose on Sunday


jumped on Monday on the back of polls suggesting British voters


Japan's Nikkei soared over 2% to a one-week high on Monday,


posting the biggest daily gain in two months.


Very interesting considering the wobbles it has had over the past


week. The safehaven yen also


weakened on the uptick And here in Europe, sterling has


been at the sharp end of investors' worries over a possible UK exit


from the EU, falling nearly 5 percent against the dollar this year


and nearly 9 percent But today it's jumped


by the most in 3 days. Looking at equities,


all major European markets up over 1.7% - that's


after rebounding on Friday but still posting it's third


straight week of losses. And Samira Hussain has


the details about what's ahead A few things happening this week to


keep us busy in the US. Facebook will be having their shareholder


meeting on Monday, voting on a new class of stock which will encourage


the founder Mark Zuckerberg to remain in an active leadership role.


On Tuesday and Wednesday, US Federal reserve chair will be speaking to


members of conference. This is her semiannual testimony on monetary


policies. On Thursday Britain will be voting in a referendum on whether


to leave the European Union. The impending vote has been having an


impact on US markets and so investors here will be watching that


closely. And on Friday we will see how confident Americans are feeling


when the consumer sentiment is out for the month of June.


Joining us is Fung Siu from the Econimist Intelligence Unit.


She is here to talk to us about what is going on in Japan. While these


markets have been severely on the move, we had a big week for Japan


last week. News from International Monetary Fund saying that policy


needs to be changed. Yet today we have had trade numbers from Japan


that are pretty dismal as well. Give us your take on how this is being


managed in Japan right now. They are watching the currency very


carefully. Absolutely. The government has an economic agenda on


the go. They have done what most policymakers would do in straitened


times, which they see themselves in at the moment, which is basically to


use monetary policy and fiscal policy. Monetary policy has gone


into uncharted territory with a quantitative easing programme. At


the same time with fiscal policy there are limits to what they can do


because Japan has huge public debt, about 230% of GDP, 2.3 times the


size of the country's output. There is very little that he can do on the


fiscal front but nevertheless I suspect he will carry on trying.


With all these policies in place, he is doing his best to try and get the


economy on the move. But in normal circumstances, all these policies


would work but he is facing considerable headwinds. China


slowing down is affecting exports so the trade numbers have been banned


because of the slow down in China. Had these policies being put in


place when China was expanding at rapid rates of eight or 9%, Japan


wouldn't have had any problems. Trade numbers are coming out week


because of the weak demand from China. There is a suggestion from


the IMF that they need to raise the sales tax in the country from 8% to


at least 15% to make a change. They did try. It had a bad effect. That


is because the economy is so fragile and consumer sentiment is so weak.


It sent the economy into a downtrend. Yes, they need to


increase the consumption tax only because they need to get in revenue


to pay the welfare payments because they have an ageing population. The


tax increases will come much later on. In the meantime, they will try


their best to put in place measures that will boost the economy as much


as possible. We wish them luck! It is not easy. Thank you for your


time. Keeping an eye on Japan, especially with regards to the yen.


Still to come on the programme: It may only be 8:45am in London but it


is never too early for June the clock. -- gin and tonic. We are


finding out how gin has become a global business.


Ben Thompson is in the city. He has been speaking to experts about what


is happening. Ben what, have you been hearing? Before I start can I


say the gin better come down here when you try that later! You're


right, we're in the centre of the financial heart of the country. The


City of London. Just a Square Mile, but what happens this week could be


important for its future. They are keeping an eye on what the polls are


saying in the run up to the vote. Some certainty, we will get a result


on Friday, but many suggests that's when the real uncertainty begins


when we try and work out what happens next. This really tells you


all you need to know. "Hold on to your hats, markets braced for


referendum turmoil." That's in the City AM, the business paper this


morning. I want to show you around a bit. If you're not familiar with


where we are. You can see the Royal Exchange. It has been at the centre


of the city for hundreds of years. Originally built on the site in the


1700s, it was home to traders from around the world, selling their


wares. Just across the road from that, the Bank of England, of


course, home to the governor and the Monetary Policy Committee. Amongst


other things it does set interest rates, but behind it, you might be


able to make it out in the mist and the rain, the new city, the


skyscrapers that are changing the city skyline, the Gherkin and it


contributes to the ?50 billion or so to the UK economy every year. So


those people will be keeping a close eye on the vote on Thursday. To find


out what it means for them, but also for the country as a whole. Yes, of


course, Ben this is a really big week for the city, isn't it, with


its oddly aimed buildings out there, it is not just a big political week


at all? Yeah, it will be felt particularly keenly, I know Alice


you touched on it earlier. I will talk you through the numbers,


sterling up 1.5% and the FTSE up 2%. They are keeping a close eye on what


happens. They will be hoping for some certainty, but the uncertainty


could really begin on Friday morning.


That's what the markets like the least. You may not get any gin, our


producers have got their tabs on it. Majestic's sales are up.


Our top story: Several of the UK's biggest car


manufacturers including Nissan, Jaguar Land Rover and Toyota have


written to their staff, advising them to back Britain's


A lot of smaller business leaders, those who run small companies, who


are self-employed, they have an opposite few, quite a few of them


and there is plenty of the views on both sides on our website. Do dig in


deep and read to have a lack at what's being said. Just head online


for that. Now let's get the Inside Track


on Britain's booming gin industry. Overseas sales are now worth over


?2 billion - that's around $2.9 billion and sales are up


some 46% since 2010. Brockmans is one of the boutique


distilleries that's benefiting from the UK's renaissance


as a gin-maker. The company's super-premium spirit


is one of the fastest growing Outside of the UK,


Brockmans is available in 40 This includes export markets


both inside and outside The distillery is performing


particularly well Bob Fowkes, CEO of


Brockmans Gin joins us now. And you can see the big bottle,


thick glass, that's part of the brand on the table and two glasses


of gin. So whilst he is answering our first question we will test it!


I haven't tested it yet! But just give us a sense of this brand


because that is your area of expertise Bob, it is selling a brand


and when it comes to gin, most people have heard of various


companies. But not this one. It is fairly new. Tell us how you managed


to get it out there? We launched in 2009. Firstly, you're right, my


focus is brand development. That's my background. I'm the marketing


Director of Brockmans Gin, my CEO will be pleased I pointed that out!


Our apologies. I'm one of the founders. I started this from a


blank sheet of paper and what's important is to aid develop a great


product and B, develop a great brand and to develop them in Unison. A lot


of companies develop them separately and it is important to combine them


together. A brand is a story. A story that you're showing to


consumers. You say it is a great product and you say that that it is


particularly specialist, it would have to be because it is kind of


double the price of the gins that we all know of that are on the


supermarket shelves, the names we are familiar with. . This is double


the price? We are batch distilled. We are craft disstilled. We use


natural ingredients. We use 11 which really makes for a great tasting


product. And you're currenty in Europe, aren't you? Are you looking


at other markets? We are in Europe, North America and Australia and one


of the interesting areas has been the boom in gin that happened at the


luxury end has come from Spain and Spain is starting to influence the


Latin American markets and we are starting to look at those as well.


Do people drink their gin differently? No, the Spanish led the


way and the glasses that you have in front of you, the wide, almost


balloon glasses... They are lovely glasses. They were developed in


Spain. Spain is a big market for gin, bigger than the UK. The amount


of drink in there. The key is to use lots of very big ice in a glass like


that. It is probably a double roughly a double. But it looks more


because it is a very big glass. But actually the key is to add lots of


ice to keep it really cool and refreshing for as long as you can.


Can I just ask you though, if you weren't on board with this company,


somebody who had years and years of experience of managing brands within


this industry, you worked for Diego for sometime, do you think they


would be where they are,000? I'm not saying it is all about you, but I'm


suggesting it is all about the marketing isn't it as opposed to the


quality of the product? There is lots of products out there and there


is lots of people develop new gins and they tend to be just products.


You need to have a great product and you need to develop a great brand in


tandem. I imagine many people watching now who have something they


think you develop a story. Today think you develop a story. Today


with a lot of social media, digital marketing, you have to have a story.


You develop a story that's plausible, believable, relevant and


motivating to consumers. From there you can develop their product and


your branding, your packaging. So everything needs to work in Unison.


It is not just a phase this love of gin? It is a boom that's here to


stay. Hopefully for you! LAUGHTER


All right Bob, we have to leave it there. We have got to have a taste.


Cheers! Well, there we go. Very nice. Very


refreshing. I don't normally have gin at this time of the morning!


Now, it's just three days until voters here in Britain decide


whether the UK should remain in the European Union or leave


and we've been talking to small business leaders in the UK


and Europe to find out what they believe


Guy Sainty runs the Stair Sainty Gallery in London


He feels that his business and the London art market


is suffering because of EU VAT regulations.


My wife and I run the Stair Sainty Gallery which specialises


in European art from the 16th to the 20th century.


Since 2006, the European Union required that the UK introduce


import VAT for all works of art that come into this country


Far fewer works are consigned from outside the European Union.


It's just simply too expensive for us to handle works


that are owned by say an American consigner.


It has meant that London is essentially being replaced


by New York as the major art dealing centre.


If we leave the European Union and we remove the burden of import


VAT, this will transform London and make it become the most


Richard is back as you can see. Business editor of the Times. He has


not been drinking gin. But I just want to mention tweets we have had


from our viewers. One viewer got hold of me to say a lager at 45


cents, you can't beat it! I don't think you can!


, "I don't get discounts, I haggle and get prices down in my old age."


." Thrrchlts you go. Your favourite tipple. A pint of Guinness or a nice


glass of red wine. I like all sorts. Let's talk about what is in the


papers. Of course, interesting today, all the national papers in


the UK and international press looking at this referendum, aren't


they? Absolutely. There is a piece in the New York Times which is


always interesting to see what people think of us overseas and I


don't think we don't come out very well in the article. The Brits don't


come out very well, I'm not sure Europe comes out very well. That's


always interesting to see how, it is good to see how they interpret


events overseas, that's very interesting piece actually in the


New York Times. And saying whatever happens on 23rd June, Brussels have


got to re-think the way they operate? There is a growing


Euro-scepticism in other parts of Europe, not just in the UK. All


right, well we are being told, we are nearly out of time. So Richard,


we will let you go, you have got a busy week ahead of you. Yes, I have.


And the weeks to come as do we. Thank you, we appreciate it.


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


Hello there. It is a leap year this year so today marks the summer


solstice. Starting off cloudy and wet for many, but it is an improving




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