Browse content similar to 04/08/2016. Check below for episodes and series from the same categories and more!
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This is Business Live. Mark Carney, take to the stage, he warned we | :00:14. | :00:22. | |
could see a slow down if we voted to leave the EU. Will he cut rates for | :00:23. | :00:27. | |
the first time since 2009? Live from London, that our top story | :00:28. | :00:31. | |
today on Thursday the 4th of August. -- that is. | :00:32. | :00:45. | |
It is shelter from the Brexit storm, the Bank of England weighs up action | :00:46. | :00:52. | |
as the economy teeters possibly on the brink of recession. It is | :00:53. | :00:57. | |
expected that Mark Carney will press that rate cut button and reduce | :00:58. | :01:01. | |
rates by a quarter of 1%. It will be the first interest rate cut in | :01:02. | :01:06. | |
Britain since 2009. Also in the programme, Toyota in a spin. Asia's | :01:07. | :01:13. | |
largest car-maker says profits tumbled by almost 15%. This is as | :01:14. | :01:16. | |
the car giant contends with falling sales in the United States and | :01:17. | :01:23. | |
increasingly stronger yen. A busy day on the markets. Europe very keen | :01:24. | :01:31. | |
to see the interest rate cut. But everything is up because of that job | :01:32. | :01:36. | |
market news. A glitzy fundraising dinner is set | :01:37. | :01:39. | |
speak to the boss of a company that speak to the boss of a company that | :01:40. | :01:43. | |
hopes to revolutionise the way charities raise money. Also, | :01:44. | :01:48. | |
ditching your digital devices to detox the mind, body and soul. | :01:49. | :01:52. | |
Logging out and signing off seemed to be the new trend, but are you | :01:53. | :01:57. | |
ready to disconnect? Or are you addicted? Let us know. | :01:58. | :02:08. | |
Lots of messages coming in already. We've been bombarded by the | :02:09. | :02:17. | |
technology question. The will they won't they | :02:18. | :02:20. | |
merry-go-round over a possible UK rate cut is in full swing today | :02:21. | :02:23. | |
as the country looks to stave off The bank disappointed a lot of | :02:24. | :02:26. | |
people. economic data since then has led | :02:27. | :02:43. | |
many to believe that they will be As you can see here rates haven't | :02:44. | :02:47. | |
moved much for quite a while now 0.5% a year after year, almost eight | :02:48. | :02:58. | |
years we've seen that. We haven't seen a rise since 2007. | :02:59. | :03:02. | |
Leading economists now fear that there's a 50/50 chance of the UK | :03:03. | :03:07. | |
falling into recession as a result of the Brexit vote and lower | :03:08. | :03:12. | |
interest rates are one of the ways to reduce that risk. | :03:13. | :03:17. | |
The theory goes that lower rates make saving money less | :03:18. | :03:21. | |
attractive while reducing the cost of borrowing. | :03:22. | :03:26. | |
This in turn drives people to borrow and spend more, | :03:27. | :03:30. | |
That all sounds great but unfortunately there are also | :03:31. | :03:35. | |
With rates already so low there are fewer levers to pull | :03:36. | :03:45. | |
if things get worse for the central bank. | :03:46. | :03:48. | |
Japan and the EU have both tried negative rates but many economists | :03:49. | :03:51. | |
argue that this has done more harm than good. | :03:52. | :03:56. | |
Prolonged ultra-low rates also tend to encourage unsustainable debt | :03:57. | :03:59. | |
With borrowing so cheap people and businesses are far more likely | :04:00. | :04:13. | |
to pay over the odds for things they can't really afford. | :04:14. | :04:15. | |
Our Economics Editor Kamal Ahmed joins us on the programme. | :04:16. | :04:21. | |
Welcome and good morning. This isn't an easy job. How do you signal that | :04:22. | :04:27. | |
you will do whatever it takes to support an economy, but at the same | :04:28. | :04:31. | |
time not exacerbate the problems of faltering confidence which we've | :04:32. | :04:34. | |
seen from some of the data from the past few weeks? The Bank of England | :04:35. | :04:39. | |
has marched us up the hill of we are going to cut rates. We were here a | :04:40. | :04:44. | |
month ago when the monetary policy committee, the committee that takes | :04:45. | :04:49. | |
the decision of nine economists of interest rates, we thought in July | :04:50. | :04:53. | |
they would cut rates. The bank didn't. I think that was mostly down | :04:54. | :04:58. | |
to the lack of data after the 23rd of June vote on leaving the European | :04:59. | :05:02. | |
Union. There has been a lot of data since then. I think the chance of a | :05:03. | :05:07. | |
cut, which will be announced at midday today in London, is far | :05:08. | :05:13. | |
higher than it was in July. I think Mark Carney has said that he wants | :05:14. | :05:18. | |
to see more monetary easing. He has been supporting that by two very | :05:19. | :05:23. | |
significant members of the NCP. -- supported. I think we mustn't forget | :05:24. | :05:31. | |
that cutting rates isn't all they could do. They also could introduce | :05:32. | :05:38. | |
more quantitative easing, the buying of government debt, that increases | :05:39. | :05:41. | |
the money supply in the economy. Or they could announce that they want | :05:42. | :05:49. | |
to support bank lending, that is producing more money, more cheap | :05:50. | :05:52. | |
money for banks to lend into the economy. There are other levers. But | :05:53. | :05:57. | |
the big issue for Britain at the moment is the monetary policy, it | :05:58. | :06:01. | |
isn't the interest rate, it is fiscal policy. What will the new | :06:02. | :06:04. | |
government do, the new Chancellor, Philip Hammond, when they announce | :06:05. | :06:08. | |
their first sort of Budget, the Autumn Statement, in November, | :06:09. | :06:12. | |
December? It isn't just a British thing at the moment. We have the | :06:13. | :06:21. | |
global picture. If we see a move from the Bank of England that will | :06:22. | :06:24. | |
just replicate what we'd seen the Australian central bank do, they | :06:25. | :06:30. | |
have cut down to a record rate, and the bank of Japan. Central banks | :06:31. | :06:35. | |
are, once again, getting very active. Central banks have been | :06:36. | :06:42. | |
trying to take the weight, or do the heavy lifting of economic growth. | :06:43. | :06:46. | |
Probably they would argue, and Mark Carney has said this in the past, | :06:47. | :06:51. | |
almost too much has been expected from central banks. To the point of | :06:52. | :06:55. | |
which now the responsibility is moving much more sharply towards | :06:56. | :07:03. | |
governments. You said in your intro to our discussion that negative | :07:04. | :07:06. | |
interest rates haven't done a huge amount. There is some truth in that. | :07:07. | :07:11. | |
But interestingly, if you take Britain out of the equation, and | :07:12. | :07:14. | |
Britain has been suffering economically since the referendum, | :07:15. | :07:17. | |
the Eurozone is doing better now, China is doing better now. There is | :07:18. | :07:23. | |
some evidence Japan is doing better. The American economy has been | :07:24. | :07:29. | |
struggling. Overall this monetary commerce hugely loose monetary | :07:30. | :07:33. | |
policy, around the globe does appear to be feeding through to the | :07:34. | :07:37. | |
Eurozone, at least to slightly stronger growth. -- this monetary | :07:38. | :07:42. | |
policy, this hugely loose monetary policy. When you look at some of the | :07:43. | :07:50. | |
data, particularly around lending, it does not seem to be the case that | :07:51. | :07:54. | |
banks are not willing to lend. It seems to be the case that people are | :07:55. | :07:59. | |
not willing to borrow. They just don't want it. You are right. This | :08:00. | :08:05. | |
is not just a supply problem it is a demand problem. Already in the | :08:06. | :08:09. | |
aftermath of a referendum the Bank of England actually reduced capital | :08:10. | :08:15. | |
requirement on banks to encourage them to lend. Banks are already in a | :08:16. | :08:21. | |
position where they are able to lend far more than demand is in the | :08:22. | :08:26. | |
system. I think that is around, again, fiscal policy. It's around | :08:27. | :08:30. | |
businesses feeling they will borrow money for a reason. There will be | :08:31. | :08:35. | |
big infrastructure projects that could support the economy. At the | :08:36. | :08:39. | |
moment businesses are hoarding cash because they don't feel confident | :08:40. | :08:43. | |
about the future. Clearly that uncertainty has grown now Britain | :08:44. | :08:47. | |
has voted to leave the European Union. Because it is unclear what | :08:48. | :08:50. | |
our relationship will be with the rest of the EU. Those are the areas | :08:51. | :08:56. | |
where uncertainty is an issue for businesses. They are not shouting | :08:57. | :08:59. | |
that they cannot borrow at low enough rates, borrowing is | :09:00. | :09:05. | |
incredibly come historically cheap. What businesses need to invest is | :09:06. | :09:10. | |
certainty around the political situation, the economic policies of | :09:11. | :09:14. | |
the new UK Government, and what it's going to do on taxing, spending, and | :09:15. | :09:18. | |
borrowing. Its moves on that, I think, will increase the demand | :09:19. | :09:22. | |
issue, which you have struck upon, rather than the supply issue. Thanks | :09:23. | :09:31. | |
very much. I am glad you agree with me. | :09:32. | :09:35. | |
CHUCKLES Let's talk about Japan now. | :09:36. | :09:38. | |
Toyota has just published financial results for the first | :09:39. | :09:40. | |
It is almost building up to a perfect storm, right? US car sales | :09:41. | :09:53. | |
falling and the Japanese currency has been a bit strong. | :09:54. | :09:58. | |
That's right. It is essentially the strong currency which has hit | :09:59. | :10:03. | |
earnings for Toyota. It's the world's guest auto-maker. They are | :10:04. | :10:06. | |
blaming the strong yen for the nearly 15% fall in its profits over | :10:07. | :10:11. | |
the April to June quarter. It also said sales in the US are down. That | :10:12. | :10:15. | |
strong yen means the profits it brings home from markets like the US | :10:16. | :10:23. | |
are lower. It is only really worth more when the yen is weak. It also | :10:24. | :10:26. | |
makes them more competitive overseas. But the yen has been | :10:27. | :10:29. | |
rallying since the start of the year rallying since the start of the year | :10:30. | :10:32. | |
because of those volatile equity market and Britain's vote to leave | :10:33. | :10:36. | |
the European Union. That prompted many investors to buy it because | :10:37. | :10:39. | |
they see it as a safe haven investment. We also saw other | :10:40. | :10:44. | |
factors like the earthquake earlier this year. That hit one of Toyota's | :10:45. | :10:50. | |
the production centres. It hit sales of about 60,000 vehicles. We also | :10:51. | :11:01. | |
saw Toyota cutting for profits. We are seeing it slide to a four year | :11:02. | :11:05. | |
low. A perfect storm. Not looking good. But there were still profits, | :11:06. | :11:14. | |
$5.4 billion, and the shares closed today before the results were out at | :11:15. | :11:17. | |
nearly 2% higher. Thanks very much. Electric car maker Tesla lost | :11:18. | :11:20. | |
$293 million in the three That's the 13th | :11:21. | :11:25. | |
quarterly loss in a row. It also missed analyst's | :11:26. | :11:33. | |
expectations for sales forecasts and fell short | :11:34. | :11:35. | |
of production targets. The company insists however | :11:36. | :11:37. | |
that it is on track to deliver 50,000 Model S and Model X vehicles | :11:38. | :11:40. | |
in the second half of the year. The world's biggest | :11:41. | :11:48. | |
sports-maker, Nike, has announced that it will stop | :11:49. | :11:50. | |
selling golf equipment. Last year sales at Nike's golf unit | :11:51. | :11:53. | |
fell by 8% to $706 million, it's the third year | :11:54. | :11:56. | |
in a row of declines. Earlier this year Nike's rival, | :11:57. | :12:03. | |
Adidas, also announced its intention Who is going to make the golf stuff? | :12:04. | :12:15. | |
Hopefully nobody will be playing any golf. | :12:16. | :12:15. | |
Atlantic City's Trump Taj Mahal will close at the end of the summer. | :12:16. | :12:19. | |
The casino owned by billionaire investor Carl Icahn, is the latest | :12:20. | :12:21. | |
in a string of casino closures for the New Jersey Beach resort. | :12:22. | :12:24. | |
Four of its 12 casinos remain shut after closing in 2014. | :12:25. | :12:34. | |
The magic of television, I'm on my legs. | :12:35. | :12:39. | |
Japan's main market the Nikkei recovering some of that | :12:40. | :12:42. | |
It has had a heck of a right of late. -- ride. | :12:43. | :12:54. | |
A bit of a rebound in oil prices from four month lows also supporting | :12:55. | :13:04. | |
We will get the big jobs figures on Friday from the US, remember. | :13:05. | :13:19. | |
In Europe - and the big news will be at midday - | :13:20. | :13:22. | |
will the Bank of England cut rates to the lowest level in the central | :13:23. | :13:25. | |
Currency dealers are a bit uncertain how sterling would react | :13:26. | :13:42. | |
to a rate cut, as it has been largely factored in already. | :13:43. | :13:45. | |
and find out what'll be making the biz headlines in the US. | :13:46. | :13:52. | |
On Wednesday we heard from media companies Time Warner | :13:53. | :13:55. | |
On Thursday, Viacom, the owner of Nickelodeon, | :13:56. | :14:01. | |
Comedy Central and the film studio Paramount Pictures, | :14:02. | :14:03. | |
The legal drama over control of the $40 billion media empire, | :14:04. | :14:13. | |
as well as disappointing results at American box offices, means that | :14:14. | :14:16. | |
investors will have lots of questions for company executives. | :14:17. | :14:18. | |
And as the job market in the US picks up, the professional social | :14:19. | :14:21. | |
networking site Linkedin expects its earnings to do the same | :14:22. | :14:23. | |
Investors will be looking for more details on its $26 billion | :14:24. | :14:32. | |
acquisition by Microsoft which was announced last month. | :14:33. | :14:39. | |
And, of course, investors will want to know if they expect any | :14:40. | :14:43. | |
impact of the Brexit vote on the company. | :14:44. | :14:49. | |
Let's have a quick look at some other stories that | :14:50. | :14:52. | |
This is about twitter. Twitter shares surged by about 17% on a | :14:53. | :15:06. | |
rumour that this guy here, he is the former boss of Microsoft, might be | :15:07. | :15:10. | |
interested in buying the entire site. There have been lots of | :15:11. | :15:13. | |
reports. Him and somebody else, right? | :15:14. | :15:23. | |
Yes. Him and another investor are getting ready to buy Twitter. | :15:24. | :15:32. | |
Ballmer Last year announced a 4% stake in the company. Worth about | :15:33. | :15:37. | |
$12 billion. The problem with Twitter is it is a | :15:38. | :15:39. | |
company that has never made a profit. Its last numbers that came | :15:40. | :15:45. | |
back, the biggest problem is building the monthly users, the | :15:46. | :15:49. | |
active users, I should say. It was only a few weeks ago where we had | :15:50. | :15:53. | |
the latest numbers and they built them in the last few months by about | :15:54. | :15:58. | |
3% only. Experts are saying it just is not enough, and then you have the | :15:59. | :16:04. | |
competition from Snapchat. And lots of people deciding they | :16:05. | :16:08. | |
don't want their devices. They are putting down their Magri devices and | :16:09. | :16:11. | |
having a digital detox. We will talk about that later. -- | :16:12. | :16:14. | |
their devices. Still to come - are glitzy | :16:15. | :16:17. | |
fundraising dinners set to become Later in the programme, | :16:18. | :16:20. | |
we speak to the boss of one company which hopes to revolutionise the way | :16:21. | :16:24. | |
charities raise money. You're with Business | :16:25. | :16:26. | |
Live from BBC News. British bookmaker Ladbrokes has just | :16:27. | :16:34. | |
released financial results The BBC's Theo Leggett | :16:35. | :16:36. | |
joins us now. He has been going through some of | :16:37. | :16:49. | |
the numbers. Tell us more. This time last year, the first six months of | :16:50. | :16:54. | |
2015, Ladbrokes racked up a more than ?15 million loss, but this time | :16:55. | :16:59. | |
it's turned it around on the pre-tax figure is ?25.2 million worth of | :17:00. | :17:04. | |
profit. It's all about football. There have been some problems with | :17:05. | :17:07. | |
Leicester City winning the Premier League costing the company ?3 | :17:08. | :17:12. | |
million. But on the other side of the coin, the European Championship, | :17:13. | :17:21. | |
where England, Northern Ireland and the Republic of Ireland, not doing | :17:22. | :17:23. | |
terribly well. Not great for fans but good for the bookies. The only | :17:24. | :17:27. | |
one bucking the trend was Wales. The overall picture from the European | :17:28. | :17:30. | |
Championships was that the number of bets was up and it was very | :17:31. | :17:34. | |
profitable for Ladbrokes and other bookies. Ladbrokes in the process of | :17:35. | :17:41. | |
merging with Coral, a big strategy change, try to sell off a number of | :17:42. | :17:44. | |
shops, but at the moment the strategy seems to be working. There | :17:45. | :17:49. | |
is lots of competition in the sector at the moment with a lot of | :17:50. | :17:53. | |
consolidation and regulatory changes as well. An interesting space to | :17:54. | :17:58. | |
follow. It has been for some time. What Ladbrokes is doing with its | :17:59. | :18:03. | |
merger with Corel is bringing together two of the big players on | :18:04. | :18:07. | |
the high street. Some are suggesting high street bookmakers have had | :18:08. | :18:14. | |
their day and it's going all on the Internet but Ladbrokes are saying | :18:15. | :18:17. | |
that isn't necessarily true. Yes, a lot of betting happens on the | :18:18. | :18:19. | |
Internet but high Street bookmakers are doing well as well. To prove the | :18:20. | :18:24. | |
point, they will sell 400 shops, and they reckon they have found a buyer, | :18:25. | :18:27. | |
currently unnamed, but they think the buyer will purchase sometime in | :18:28. | :18:33. | |
the second half of the year. We are talking about detoxing from digital | :18:34. | :18:40. | |
devices, could you live without your smartphone and devices for a few | :18:41. | :18:44. | |
days? Absolutely not, I need to keep up with your Twitter feed! You are | :18:45. | :18:49. | |
so diplomatic, a cheeky man. Thank you so much. Look up the hashtag | :18:50. | :18:55. | |
sockwars. Private health care firm Bupa says | :18:56. | :19:10. | |
it's profits have fallen 45% because of the oil price slide in the first | :19:11. | :19:12. | |
half of the year. Our top story - The Bank of England | :19:13. | :19:14. | |
is today expected to announce that it's cutting interest rates | :19:15. | :19:18. | |
to a 0.25%. If that happens, it'll be | :19:19. | :19:20. | |
the first change in the rate It will also be the lowest level of | :19:21. | :19:33. | |
interest rates in the bank's 322 years of history. We've been waiting | :19:34. | :19:37. | |
for something to happen for 88 months, so we are quite excited | :19:38. | :19:39. | |
there might be a rate cut today. Most economists believe the Bank | :19:40. | :19:42. | |
will act, with data showing a significant fall in economic | :19:43. | :19:46. | |
activity since Britain voted That happened in construction and | :19:47. | :19:58. | |
manufacturing ants as well as the service industry. | :19:59. | :20:00. | |
Charity auctions have long been associated with the super-wealthy, | :20:01. | :20:04. | |
There's now one company which hopes to make fundraising a less | :20:05. | :20:09. | |
Similar to eBay, E-Solidar is an online marketplace | :20:10. | :20:13. | |
However, all sales that take place on the platform must go | :20:14. | :20:22. | |
The company also sources memorabilia for charities, | :20:23. | :20:24. | |
meaning you don't necessarily need to meet someone famous | :20:25. | :20:27. | |
in order to auction off a signed football shirt. | :20:28. | :20:29. | |
Despite serving the charity sector, E-Solidar does aim to turn a profit. | :20:30. | :20:33. | |
Last year, E-Solidar received $600,000 from venture | :20:34. | :20:34. | |
Marco Barbosa is the founder of E-Solidar. | :20:35. | :20:47. | |
Great to have you with us. I guess we will start with that, the | :20:48. | :20:54. | |
600,000, you have to make money, so how do you? Everything we raise we | :20:55. | :21:02. | |
send to charity, so we cannot make money without impacting on charity | :21:03. | :21:05. | |
and vice versa. You must have spotted a gap in the market to set | :21:06. | :21:09. | |
up this business, so what were the structural issues you saw with big | :21:10. | :21:13. | |
charities? Big charities, about 90% of the income for charities goes to | :21:14. | :21:21. | |
5% of the charities, and 81% of charities are struggling to raise | :21:22. | :21:26. | |
funds to survive. The other side, from the consumer perspective and | :21:27. | :21:29. | |
the corporate sector, they struggle to navigate the charity world and | :21:30. | :21:34. | |
the complexity. Some charities have yet to fully grasp the technology, | :21:35. | :21:40. | |
so we want to make the bridge between the companies and the people | :21:41. | :21:42. | |
that want to support charities and the charities themselves. In | :21:43. | :21:50. | |
something like this, transparency is so important, it's important for | :21:51. | :21:54. | |
everybody, but for a charity, how do you go about making sure? We explain | :21:55. | :22:01. | |
very clearly on the website what we do, and the fee that we take. It's | :22:02. | :22:06. | |
about improving technology, bettering tools, owing to the market | :22:07. | :22:14. | |
and understand the pain from the charities and also for the | :22:15. | :22:17. | |
consumers, how they are struggling to help the charities and also the | :22:18. | :22:22. | |
corporate sector. What's the endgame for the company? As far as I can | :22:23. | :22:26. | |
think or remember, there isn't a big listed company out there in the | :22:27. | :22:32. | |
charity space. Will that be you? We hope so. In maybe 8-10 years, if we | :22:33. | :22:40. | |
manage to keep growing, we would like to be made an IPO, and show the | :22:41. | :22:49. | |
world it's possible to have the profitability and the capitalist | :22:50. | :22:52. | |
world, together with the social impact of the charity giving. At the | :22:53. | :22:59. | |
same time we are supporting great causes and making a better bridge | :23:00. | :23:03. | |
between the for-profit and nonprofit markets. Is that realistic? Seeing | :23:04. | :23:09. | |
the nonprofit sector be as profitable as the profit sector. | :23:10. | :23:13. | |
Surely by definition they are not. We have that visceral reaction of | :23:14. | :23:22. | |
people making a lot of money to help people. We strongly believe it's | :23:23. | :23:26. | |
possible to help people. We know it's very hard, but if we work with | :23:27. | :23:33. | |
and for charities, attracting venture capital is very tough, but | :23:34. | :23:37. | |
we think we can show to other entrepreneurs that it's possible. So | :23:38. | :23:43. | |
we can open this mentality and show that it's possible. What's on the | :23:44. | :23:49. | |
site just now, what do you have listed? A shirt from the cycling | :23:50. | :23:56. | |
athletes. A shirt from the Portuguese team. We have the glasses | :23:57. | :24:06. | |
from Elton John. Just go back to the question, we are a company that | :24:07. | :24:14. | |
supports communities and we hope everyone can invest. Great stuff, so | :24:15. | :24:19. | |
sorry, but thank you for coming in. Internet overload has led | :24:20. | :24:21. | |
millions of people in the UK to take a digital detox, | :24:22. | :24:23. | |
according to research The survey found more than 30% | :24:24. | :24:25. | |
of internet users have taken between a day | :24:26. | :24:29. | |
and a month away from the web. Almost 60% of those surveyed | :24:30. | :24:31. | |
considered themselves BBC's Emma Simpson has this | :24:32. | :24:33. | |
report... Nothing beats getting | :24:34. | :24:39. | |
away from it all. If I Google that, we will be | :24:40. | :24:45. | |
able to look today. I find it totally impossible just | :24:46. | :24:52. | |
to put it away and not I like to keep in touch | :24:53. | :24:55. | |
with everybody and I like to be able to post all my photos to Facebook | :24:56. | :25:00. | |
so my friends can see where we are. We are now spending the equivalent | :25:01. | :25:05. | |
of just over a day a week online A third of adults have taken | :25:06. | :25:08. | |
a "digital detox" or break to strike For instance, 16% of us have made | :25:09. | :25:14. | |
a point of going somewhere with no Many parents are making their kids | :25:15. | :25:34. | |
take an online break. Nearly two thirds have been digitally grounded, | :25:35. | :25:37. | |
but this lot say they know when to stop. I don't find it something you | :25:38. | :25:41. | |
need every day. Because I'm more than happy biking up and down, I | :25:42. | :25:44. | |
don't have to be on the Internet. We are better connected | :25:45. | :25:51. | |
than ever before. But the challenge is to not let | :25:52. | :25:53. | |
technology take over our lives. There will be more business news | :25:54. | :25:56. | |
throughout the day on the BBC Live webpage and on World Business | :25:57. | :26:02. | |
Report. | :26:03. | :26:05. |