:00:07. > :00:08.This is Business Live from BBC News with Ben Thompson
:00:09. > :00:13.A culture of profit no matter what still exists in our banks
:00:14. > :00:16.according to Britain's biggest ever rogue trader.
:00:17. > :00:18.In his very first broadcast interview Kweku Adoboli
:00:19. > :00:39.Live from London, that's our top story on Monday 1st August.
:00:40. > :00:44.The rogue trader who was described as being just a gamble or two away
:00:45. > :00:47.from destroying UBS and lost $2.2 billion has told the BBC
:00:48. > :00:52.the crimes he committed could absolutely happen again.
:00:53. > :00:58.Also in the programme: If you can't beat them, join forces.
:00:59. > :01:03.Online taxi giant Uber is to merge with local Chinese rival Didi
:01:04. > :01:10.And ahead of a raft of European manufacturing data and a big week
:01:11. > :01:14.for UK interest rates, here's how markets are looking.
:01:15. > :01:16.And we'll be getting the inside track on the business
:01:17. > :01:23.It's an industry that's taken off across the globe and is soon
:01:24. > :01:31.expected to reach the $1 trillion mark in global sales.
:01:32. > :01:35.And as beach resorts and holiday hotspots say they're having
:01:36. > :01:40.to install better wifi and faster connections to keep customers happy,
:01:41. > :01:43.we want to know is wifi now a basic necessity rather
:01:44. > :01:58.Let us know using the hashtag BBCBizLive.
:01:59. > :02:03.Kweku Adoboli, the former UBS trader convicted of fraud,
:02:04. > :02:06.has told the BBC that bank culture of profit no matter
:02:07. > :02:09.He's been speaking to the BBC in an exclusive first
:02:10. > :02:17.The 36-year-old's unauthorised trading lost the Swiss bank
:02:18. > :02:20.$2.2 billion and in 2012 he was sentenced to seven years
:02:21. > :02:33.Mr Adoboli became a junior trader at just 25 and by the age of 27
:02:34. > :02:38.he was part of a team responsible for $50 billion in assets.
:02:39. > :02:40.He claimed in court he had lost control of his trades
:02:41. > :02:45.but the prosecution said his actions amounted to fraud, pure and simple.
:02:46. > :02:49.His actions cost fellow traders their jobs,
:02:50. > :02:53.prompted the resignation of the Chief Executive and wiped
:02:54. > :02:57.$4.5billion from the share price of UBS.
:02:58. > :03:00.It was the largest trading loss in British banking history
:03:01. > :03:03.and the prosecution said that he was only a gamble or two
:03:04. > :03:08.away from destroying Switzerland's largest bank.
:03:09. > :03:11.Mr Adoboli is a Ghanaian national and because he was sentenced
:03:12. > :03:13.to more than four years in prison he is automatically
:03:14. > :03:19.Last month, he lost his appeal against being deported from the UK
:03:20. > :03:24.Speaking to our economics editor in his first ever TV interview,
:03:25. > :03:32.he was asked if he should apologise for what happened.
:03:33. > :03:39.I have apologised and I will continue apologising. I am
:03:40. > :03:43.devastated, not for myself, but for my institution and the people I
:03:44. > :03:49.worked with. The very first thing I did when I was first arrested was to
:03:50. > :03:54.say I was sorry beyond words. I said it through my lawyers but that is
:03:55. > :03:58.what I said. During my trial I said I was sorry repeatedly. These are
:03:59. > :04:04.not just devices. It is how I feel. I failed. I made mistakes. Do you
:04:05. > :04:12.think that the culture that you found yourself in has changed now?
:04:13. > :04:19.And it couldn't happen again? Unfortunately I have to say that the
:04:20. > :04:23.conversations I have had with people in the industry over the last year,
:04:24. > :04:31.through the conferences I have spoken at, the seminars I have been
:04:32. > :04:33.involved in, everyone, the young traders, the senior executives,
:04:34. > :04:41.everyone in the industry is still looking for a way to change culture
:04:42. > :04:46.within the industry. We still have so much work to do to get the
:04:47. > :04:51.finance industry in a position where it is trusted by society, that it is
:04:52. > :04:58.contributing something consistently that helps society move forward in a
:04:59. > :05:04.positive way. As behaviour changed in banking enough? No, absolutely
:05:05. > :05:07.not. The young people I have spoken to, former colleagues I have spoken
:05:08. > :05:12.to, they are still struggling with the same issues, then conflicts, the
:05:13. > :05:18.same pressures to achieve no matter what. And we know where conflict
:05:19. > :05:22.goes. Where conflict comes is where people fall into this grey zone. I
:05:23. > :05:26.think it can absolutely happen again, especially as we go into what
:05:27. > :05:33.could possibly be the next phase of the great financial crisis over the
:05:34. > :05:38.next 12 to 18 to 24 months. Looking back now, do you think of yourself
:05:39. > :05:44.as a criminal? I don't think I am a criminal. It is a label that I have.
:05:45. > :05:50.I made a terrible mistake. A sequence of terrible choices. But
:05:51. > :05:55.your intentions were always in the right place. I accept that I was
:05:56. > :06:00.found guilty of a crime that had dishonesty central to it. You were
:06:01. > :06:04.called a liar in the trial. I was called a liar and I accept that I
:06:05. > :06:09.lied and I accept that I was dishonest in the way I was doing
:06:10. > :06:17.what I was doing. How did the son of a senior figure in the United
:06:18. > :06:20.Nations, who went to a well renowned Quaker school, end up being
:06:21. > :06:25.photographed in handcuffs being taken to and from court and ending
:06:26. > :06:31.up in prison? It was a shock. What was most difficult for me was
:06:32. > :06:38.thinking about my friends and family and how they were perceiving it.
:06:39. > :06:45.Throughout the entire process, you stop thinking about yourself. Maybe
:06:46. > :06:50.that is just the way I am built. But my concern was never about me. It
:06:51. > :06:55.was never about the pain or the embarrassment or the things that
:06:56. > :06:59.were being said about me. It was the impact that those things had my
:07:00. > :07:06.friends and family. That was the thing was most difficult. We will be
:07:07. > :07:09.getting more on those story and what some of those comments will mean for
:07:10. > :07:13.the wider banking industry because we will be speaking to our economics
:07:14. > :07:16.editor Kamal Ahmed onset later. Stay tuned for that. Now we turn our
:07:17. > :07:20.attention to Asia. That appears to be Uber's strategy
:07:21. > :07:24.when it comes to China. The largest app Didi Chuxing
:07:25. > :07:27.is poised to merge with its rival Uber China as part of
:07:28. > :07:29.a $35 billion deal. Our Asia business correspondent
:07:30. > :07:42.Karishma Vaswani is Great to see you. Didi Chuxing, I
:07:43. > :07:49.just like saying it! Was based on the cards? Uber had some trouble in
:07:50. > :07:54.China. Yes, it has had a fair amount of trouble. Reports out this morning
:07:55. > :07:57.say it will merge its operation with local writhing Didi Chuxing.
:07:58. > :08:04.According to these reports, the deal will give Uber a 20% stake in the
:08:05. > :08:08.combined firm. That deal could be worth up to $35 billion. They have
:08:09. > :08:12.both spent bucketloads of cash on incentives for drivers and subsidies
:08:13. > :08:18.for users, as well as promotions, and they have cut prices in a bid to
:08:19. > :08:23.win market share in China. But Uber has had a lot of trouble. It is
:08:24. > :08:31.losing close to $1 billion a year in a war that one industry described to
:08:32. > :08:34.me as a major blood-letting in distant... Incident. It is no
:08:35. > :08:43.surprise that Uber was calling it quits. Didi Chuxing, they controlled
:08:44. > :08:47.most of the market in China. Uber was being compromised by the amount
:08:48. > :08:53.of money being spent on the China dream. The details of the deal have
:08:54. > :08:59.not been released yet, so watch this space. Thank you.
:09:00. > :09:01.In other news: The chairman of advertising agency
:09:02. > :09:04.Saatchi And Saatchi has been suspended for saying he didn't view
:09:05. > :09:08.the lack of women in leadership roles as a problem in the industry.
:09:09. > :09:12.The head of Saatchi's parent company, Publicis,
:09:13. > :09:15.said it wouldn't tolerate anyone who didn't value inclusion.
:09:16. > :09:18.The group said its board is yet to decide whether to take further
:09:19. > :09:24.Australian newspaper group Fairfax Media has said it'll post
:09:25. > :09:26.write-downs worth nearly $760 million for the
:09:27. > :09:30.In recent years, the global publishing industry has suffered
:09:31. > :09:32.as a result of falling advertising revenue.
:09:33. > :09:35.Since 2009, the company has marked down its assets
:09:36. > :09:37.by around $4.2 billion, that's more than double
:09:38. > :09:46.There have been further demonstrations in Brazil calling
:09:47. > :09:48.for the permanent removal of suspended president
:09:49. > :09:52.The protests took place in 11 states, including Rio and Sao Paolo,
:09:53. > :09:56.and thousands of people are thought to have taken part.
:09:57. > :09:58.The latest protests come at a particularly sensitive time
:09:59. > :10:06.for Brazil, with the Rio Olympics only five days away.
:10:07. > :10:12.The Nikkei in Japan erasing earlier losses and closed up slightly
:10:13. > :10:15.as that recent surge in the yen starts to slow.
:10:16. > :10:25.The latest Japanese manufacturing PMIs showed more contraction
:10:26. > :10:34.In China, they showed little sign of improvement either.
:10:35. > :10:37.In Europe we'll get the latest manufacturing PMI data for July,
:10:38. > :10:40.and keep a close eye on the UK number after the disappointing
:10:41. > :10:44.What did the Brexit uncertainty mean for the numbers?
:10:45. > :10:48.There's also the reading for Spain, Italy, France and Germany.
:10:49. > :10:53.But most of the attention this week will be on the Bank of England.
:10:54. > :10:55.Its rate meeting and quarterly inflation report is due on Thursday.
:10:56. > :11:02.Michelle has the details in New York.
:11:03. > :11:09.The pace of corporate earnings report is slowing. Two names to
:11:10. > :11:13.watch out for this week are Tesla and LinkedIn, which both turn in
:11:14. > :11:17.their accounts. It will be a busy week for Wall Street with an action
:11:18. > :11:22.packed economic calendar. The big one is this Friday's monthly US jobs
:11:23. > :11:27.report. After disappointing growth figures last week, any signs of
:11:28. > :11:32.weakness in the labour market will be expectations of a rate rise in
:11:33. > :11:38.the near future. Payrolls for July are forecast to rise by 180,000,
:11:39. > :11:44.down from 287,000 the previous month. The week kicks off with data
:11:45. > :11:48.on the manufacturing sector. The institute for supply management
:11:49. > :11:53.issues its index later this Monday. US factory activity in July is
:11:54. > :11:55.projected to continue to expand, suggesting that manufacturers are
:11:56. > :11:58.pulling out of a prolonged slump. Joining us now is James Bevan,
:11:59. > :12:07.chief investment officer at CCLA Great to have you in the studio.
:12:08. > :12:12.Shall we start with the disappointing news from the world's
:12:13. > :12:16.biggest economy on Friday. GDP growth numbers are less than half of
:12:17. > :12:20.what they were a year ago at an annualised rate. The Asian markets
:12:21. > :12:24.are hitting a one year high because in Asia they are saying, well, the
:12:25. > :12:29.US will not raise interest rates now. The US has had a mixed bag of
:12:30. > :12:33.economic data and that is what you would expect in a world where we are
:12:34. > :12:39.experiencing quite flat growth trends and pretty much no
:12:40. > :12:42.information. This is the sort of environment where central banks will
:12:43. > :12:49.have a wait attitude for any further tightening. OK, this story has just
:12:50. > :12:52.dropped. GlaxoSmithKline and Alphabet, which was part of Google,
:12:53. > :12:56.certainly the new name for it, coming up with a new medical
:12:57. > :13:01.division. This will be bioelectronics. What more do we
:13:02. > :13:06.know? We know a lot. We know they are going to invest 470 million over
:13:07. > :13:11.five years. Several companies are significantly committed to this
:13:12. > :13:15.area. GlaxoSmithKline ran an article in Nature a few years ago to say
:13:16. > :13:18.that the use of electronics in the treatment of medical conditions was
:13:19. > :13:22.important. They believe they can steal a march on their competitors
:13:23. > :13:27.and it will be a really exciting issue if you suffer from any of
:13:28. > :13:34.these challenges including type two diabetes. Big money in that sector
:13:35. > :13:40.as well, right? And vast changes for people's lifestyles. Really
:13:41. > :13:42.important, absolutely. Great to see you. Thank you.
:13:43. > :13:45.Still to come: We'll be speaking to a man whose business
:13:46. > :13:47.it is to help us snack our way through the day
:13:48. > :13:49.without harming our waistlines too much.
:13:50. > :13:58.You're with Business Live from BBC News.
:13:59. > :14:05.That is particularly relevant for us because we went to the gym
:14:06. > :14:09.separately at the weekend and now we can't walk! But nonetheless!
:14:10. > :14:12.Shares in Britain's biggest banks are up this morning as investors
:14:13. > :14:14.breathe a sigh of relief after the results of this year's
:14:15. > :14:18.The results for 51 lenders were published on Friday evening
:14:19. > :14:29.But whilst most were good, Investors are fretting
:14:30. > :14:32.about Italy's Banca Monte dei Paschi as well as the German giant Deutsche
:14:33. > :14:39.So what are the stress tests looking for?
:14:40. > :14:41.Lorenzo Codogno is former chief economist to the Italian
:14:42. > :14:47.Treasury, he explained to us a little earlier.
:14:48. > :14:52.Like a crash test you make very extreme assumptions on the economic
:14:53. > :14:56.environment and you look at what happens to the balance sheet of the
:14:57. > :15:01.banks and whether there is any capital left at the end. This is in
:15:02. > :15:07.a nutshell. So if they have any money left after this scenario, this
:15:08. > :15:14.crisis? OK. Some British banks did not do very well, in particular RBS.
:15:15. > :15:16.But it does seem to be focused on your country's banks, Italian banks.
:15:17. > :15:42.How much of a mess are they in? Before the tests there were big
:15:43. > :15:44.concerns about the Italian banking sector and some concerns about the
:15:45. > :15:47.Italian banking sector, and also concerns about systemic risk in the
:15:48. > :15:48.system. The good news after the test, despite these concerns, the
:15:49. > :15:55.overall picture that emerges from the tests is reassuring.
:15:56. > :15:57.Thousands of pots of yoghurt have been removed from supermarket
:15:58. > :16:00.shelves because of concerns they may contain pieces of rubber.
:16:01. > :16:01.The Yeo Valley Company, which supplies Asda,
:16:02. > :16:03.The Co-op, Sainsburys, Tesco and Waitrose, says
:16:04. > :16:05.the yoghurts including some supermarket own brands
:16:06. > :16:13.Two London branches of burger chain Byron have been forced to close over
:16:14. > :16:15.the weekend after protesters released hundreds of live insects
:16:16. > :16:19.It's thought to be part of a growing backlash against the chain
:16:20. > :16:21.for its involvement in an immigration crackdown
:16:22. > :16:31.Full details are on Business Live page.
:16:32. > :16:38.Our top story: In his first broadcast interview,
:16:39. > :16:41.Kweku Adoboli has told the BBC that the culture of profit no
:16:42. > :16:45.matter what in banking has not changed and apologises after being
:16:46. > :16:49.found guilty of being Britain's biggest rogue trader.
:16:50. > :16:52.The London trader who lost the Swiss bank UBS ?1.5 billion has apologised
:16:53. > :16:55.for what he did and said that banking has not done enough
:16:56. > :17:05.A quick look at how markets are faring.
:17:06. > :17:10.Manufacturing data is due in about 45 minutes from now. European
:17:11. > :17:17.markets ticking up a little higher. A pound buying you a dollar 32.
:17:18. > :17:20.Now, how health conscious are you when it comes to what you eat?
:17:21. > :17:22.There's been a big boom in the healthy eating industry.
:17:23. > :17:24.But what about those mid-afternoon cravings,
:17:25. > :17:31.It's all too easy to reach for a bag of crisps or a chocolate bar.
:17:32. > :17:33.But, and good news for our waistlines, there are a growing
:17:34. > :17:40.number of businesses offering an alternative.
:17:41. > :17:43.The healthy foods market will push through the $1 trillion mark
:17:44. > :17:45.for the first time in 2017 as consumers become more interested
:17:46. > :18:01.for the first time in 2017 as consumers become more interested
:18:02. > :18:05.Last year, nearly 40% of all new snacks launched
:18:06. > :18:07.around the world were some form of healthy eating.
:18:08. > :18:10.In the US, this was even higher at 70% and it's
:18:11. > :18:13.One of the companies trying to satisfy demand
:18:14. > :18:17.It was founded in 2008 and has sold more than 12 million snacks.
:18:18. > :18:19.Anthony Fletcher is the Chief Executive of Graze
:18:20. > :18:28.I was reaching under the table for some of the Graze products. Welcome
:18:29. > :18:31.to the programme. One trillion, that's an astonishing market when
:18:32. > :18:35.you think about it. When it hits one trillion. A hugely competitive
:18:36. > :18:43.market. How have you managed to crack it? Well, Graze has taken an
:18:44. > :18:48.unusual approach to the market. It started off as an online brand, but
:18:49. > :18:52.it made the decision to go from clicks to bricks and it had a lot of
:18:53. > :18:56.success. Talking of that technology. With an internet firm, you can
:18:57. > :18:59.gather loads of information about your customers based on habits and
:19:00. > :19:05.then you can start offering them similar stuff and getting them to
:19:06. > :19:10.buy more. How does that work? Well, we have an agile factory which let's
:19:11. > :19:18.us launch a new product in 48 hours. Every hour we get 15,000 ratings
:19:19. > :19:22.back from our grazers. We can bring the best products to market. It is
:19:23. > :19:25.the stuff that doesn't sell that you stop selling and the stuff that
:19:26. > :19:29.you're selling, you do more of? That's part of innovation. Some
:19:30. > :19:32.things you make once and we sent them out to our grazers and if they
:19:33. > :19:38.don't like it, we never make it again. Does it vary what people like
:19:39. > :19:43.or don't like or choose from your online customers. This is the online
:19:44. > :19:46.stuff. If you order online, you get a box with a selection of snacks.
:19:47. > :19:52.This is what you sell in the shops. Does it vary? It does vary depending
:19:53. > :19:59.on the part of the country and the person who is eating. Our best
:20:00. > :20:04.seller is veggie protein power. Natural protein coming from nuts and
:20:05. > :20:09.beans. That's selling like hot cake at the moment. Let's talk about the
:20:10. > :20:13.health fad if we can call it that. It stood the test of time. People,
:20:14. > :20:27.you know, eating more healthily now and it is not just a fad. It has
:20:28. > :20:32.changed the way retail look at this. It is less carbs. You have got to
:20:33. > :20:37.adapt to the changing demands? You try lots of different things and you
:20:38. > :20:40.bring out your best seller. In Boots, we are outselling every
:20:41. > :20:46.confectionery brand apart from one. If I went back to 2008 when this
:20:47. > :20:51.company was started I never would have dreamed we could compete with
:20:52. > :20:55.the chocolate and the Chrisps. You look like a fairly young bloke! I'm
:20:56. > :20:59.always curious, younger than you! How do you get into the snack? Were
:21:00. > :21:02.you a snacker yourself? I have always worked in the food industry
:21:03. > :21:06.and I really love it. But I don't think it is shaping up and what I
:21:07. > :21:10.was interested in is how can technology help it? How can it make
:21:11. > :21:15.it more responsive to consumers. This is what I'm really passionate
:21:16. > :21:21.about. Aaron is going to have this one. I'm liking that. Protein after
:21:22. > :21:26.your gym session. It is not a gym session. I did British military
:21:27. > :21:28.fitness in Hyde Park yesterday and it is killing me. It is absolutely
:21:29. > :21:41.killing me! We asked you if wi-fi was a luxury
:21:42. > :21:47.or a necessity. A lot of you getting in touch. Marcus says, "It is a
:21:48. > :21:55.basic need. He wants to be able to watch Business Live online." Matthew
:21:56. > :22:01.says, "A basic need. Anni says a must for most people. I would choose
:22:02. > :22:05.to stay in a hotel elsewhere if they didn't have free wi-fi. Steve says,
:22:06. > :22:12."Rip off data rates when you are roaming abroad. You need free wi-fi
:22:13. > :22:15.and Gareth says, battery life comes only secondary to battery life
:22:16. > :22:26.because you need wi-fi wherever you go.
:22:27. > :22:34.Here is a reminder how to get in touch with us. The Business Live
:22:35. > :22:40.page is where you can stay ahead with the day's breaking news. . We
:22:41. > :22:43.have insight and analysis from the BBC's team of editors from around
:22:44. > :22:48.the world. We want to hear from you too. Get involved on the BBC
:22:49. > :22:55.Business Live web page: On Twitter we are at BBC business.
:22:56. > :22:57.You can find us on Facebook. Business Live on TV and online
:22:58. > :23:06.whenever you need to know! A rogue trader who was jailed
:23:07. > :23:10.for Britain's biggest banking fraud has said the industry still hasn't
:23:11. > :23:12.done enough to regain Kweku Adoboli who lost ?1.5 billion
:23:13. > :23:16.while working for the Swiss bank, UBS said pressure to make profits
:23:17. > :23:18.meant criminal behaviour Joining us is Kamal Ahmed,
:23:19. > :23:23.the BBC's Economics Editor. You did the interview with Kweku
:23:24. > :23:27.Adoboli. We heard that interview earlier. What did you make of his
:23:28. > :23:31.apology? I think it was genuine. I spent a lot of time with him. We
:23:32. > :23:34.went up to Edinburgh and spent the best part of a day really with him
:23:35. > :23:38.talking to him and obviously we have been in touch with him for a long
:23:39. > :23:45.period before then. I think he has been on a massive journey. It is
:23:46. > :23:49.sometimes easy to forget this is a person in his mid-20s was dealing
:23:50. > :23:55.with a $50 billion trading book. He says he was under pressure to create
:23:56. > :23:59.profits. That led to his behaviour, that led to the criminal trial and
:24:00. > :24:02.his conviction. He certainly talks about the notion of redemption of
:24:03. > :24:07.putting back. He gives this apology. He says it could happen again. He is
:24:08. > :24:10.giving his time to banking compliance conferences and such
:24:11. > :24:14.like. I think there is some genuine remorse there and apology. What was
:24:15. > :24:20.interesting though was that he does see this or his behaviour as
:24:21. > :24:23.something what he describes as we did this and we did that. Whether he
:24:24. > :24:27.has really taken personal responsibility for what happened is
:24:28. > :24:32.still open it debate. I asked him does he see himself as a criminal?
:24:33. > :24:38.He answered no. That's interesting what you said about, he was saying
:24:39. > :24:44.we. Ben and I were speaking and saying about the age, you think 27
:24:45. > :24:48.is young to be handling tens of billions of dollars, but we will
:24:49. > :24:53.talk about the culture in the City where you find of like, was he
:24:54. > :24:58.winging it thinking I can wing this, but the boys culture or the City
:24:59. > :25:03.culture, you're not going to be the one to go, "I made a mistake." And
:25:04. > :25:10.you keep going until you no longer can wing it. He was rather good at
:25:11. > :25:15.his job when the markets were in a benign state before 2011. I don't
:25:16. > :25:19.know if people remember, we went through 2010 and people thought the
:25:20. > :25:22.financial crisis was behind us and the markets were looking stronger.
:25:23. > :25:26.Kweku Adoboli did well through that period and he thought to himself,
:25:27. > :25:33."I'm good at this. I can take increasing amounts of risk. I'm not
:25:34. > :25:41.going to reveal that risk to UBS", but America was downgraded and
:25:42. > :25:46.credit rating downgraded, the first rumbles of the euro Chris sis. He
:25:47. > :25:50.hasn't got the hedges in place and that's when he a problem.
:25:51. > :25:56.The interview is on the website. If you want to watch that again, it is
:25:57. > :26:08.on website. That's it from us today. We will see you tomorrow. Bye-bye.