08/08/2016

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:00:00. > :00:00.The UK's Serious Fraud Office has launched an investigation

:00:00. > :00:28.into allegations of fraud, bribery and corruption at Airbus.

:00:29. > :00:33.Also in the programme, building walls and trashing trade agreements.

:00:34. > :00:38.Donald Trump laying out his economic plans for the world's biggest

:00:39. > :00:42.economy. We have the latest from the markets where Asian markets hit a

:00:43. > :00:47.high for the year following the Wall Street stunning job figures in the

:00:48. > :00:54.USA on Friday. Does that make you thirsty or even hungry? We will hear

:00:55. > :00:57.an amazing smoothie success story and meet the fastest-growing

:00:58. > :01:02.smoothie company in the UK and ask what is their winning recipe? We

:01:03. > :01:09.want to hear from you, too. Do you buy into the story or perhaps you

:01:10. > :01:11.are an addict or believe it is a fad which will pass. Get in touch with

:01:12. > :01:24.us. The UK's Serious Fraud Office has

:01:25. > :01:26.launched an investigation into allegations of fraud,

:01:27. > :01:28.bribery and corruption involving The allegations relate

:01:29. > :01:38.to irregularities concerning the use Airbus said it was co-operating

:01:39. > :01:41.with the probe, which was The bosses of Britain's biggest

:01:42. > :01:45.companies now take home an average of around $7.2m per year-

:01:46. > :02:03.this according to a report Tell us more about this

:02:04. > :02:07.investigation. We know that air bus was carrying out an internal

:02:08. > :02:12.compliance review and back in April, it reported itself to the

:02:13. > :02:16.authorities because it found inaccuracies in the applications it

:02:17. > :02:21.had been making for exporter credit guarantees from the UK Government,

:02:22. > :02:26.so Airbus has been talking about this in recent months and we know

:02:27. > :02:30.that last night, late on Sunday in the UK, Airbus put out a statement

:02:31. > :02:33.saying the Serious Fraud Office has launched a criminal investigation

:02:34. > :02:41.looking at fraud, bribery and corruption. Potentially very serious

:02:42. > :02:44.allegations indeed. For those were not familiar, explain how these

:02:45. > :02:49.exporter credits work and where the third parties come in? This is where

:02:50. > :02:53.companies such as Airbus is exporting something abroad and it

:02:54. > :02:56.may well be you need some kind of financial guarantee to make sure

:02:57. > :03:02.that sale takes place, until you apply to the agency and the country

:03:03. > :03:10.concerned. We know 6% of Airbus sales were guaranteed by exporter

:03:11. > :03:13.credit finance but, since the Airbus notified the authorities about these

:03:14. > :03:18.inaccuracies earlier this year, Britain has frozen new applications

:03:19. > :03:24.and so has France and Germany as well. So this does potentially have

:03:25. > :03:27.some kind of financial impact. Clearly some serious ramifications

:03:28. > :03:32.for the company but what happens next? What is the next stage of

:03:33. > :03:37.this? The Serious Fraud Office can take an incredibly long time.

:03:38. > :03:41.Rolls-Royce has had a separate investigation by the SFO and it's

:03:42. > :03:44.already been going on for about four years so Airbus may well not know

:03:45. > :03:50.the outcome of this for quite some time. Of course, this could be a

:03:51. > :03:54.blow to the company, not just in terms of access to export credit

:03:55. > :03:57.guarantees, but also reputations as well, because Airbus is locked in a

:03:58. > :04:05.great global battle with its archrival Boeing to dominate the

:04:06. > :04:08.battle for passenger jets and this could mean the company takes a hit

:04:09. > :04:17.to its reputation. More detail on that on the website. Shares are

:04:18. > :04:20.falling in early trade. Let's check on some other news for you. The

:04:21. > :04:25.Chinese economy has shown further signs of weakness. The latest trade

:04:26. > :04:31.figures came in worse than expected exports shrinking for the 21st month

:04:32. > :04:36.in a row. Experts fell 4% in July, worse than expectations in dollar

:04:37. > :04:40.terms. China is a crucial driver of the worldwide economy so the data is

:04:41. > :04:46.seen as a snapshot of a global outlook and that uncertainty ranging

:04:47. > :04:50.from commodity prices to the EU debt crisis and the UK leaving the EU

:04:51. > :04:58.bloc continues to mute some activity around the world. The bosses of

:04:59. > :05:01.Britain's biggest companies take home on average $7.2 million per

:05:02. > :05:03.year according to a report by the UK high pay centre.

:05:04. > :05:05.The study found that chief executives of firms on London's FTSE

:05:06. > :05:08.100 index saw their mean average income rise by 10% in 2015.

:05:09. > :05:11.The findings come just weeks after the UK's new prime minister

:05:12. > :05:21.proposed a crackdown on excessive boardroom salaries.

:05:22. > :05:29.You can imagine it's got a lot of people and their tongues wagging

:05:30. > :05:34.today both for and against the high pay. It's a big story on our website

:05:35. > :05:40.as well as our other stories. We have some data which is just come in

:05:41. > :05:43.early today, German industrial production, of course, Germany is a

:05:44. > :05:47.big trade partner with the UK, so there has been some concern about

:05:48. > :05:51.what would happen with German growth. We have German production

:05:52. > :05:57.figures here, growing again in June before the referendum result.

:05:58. > :06:00.Slightly better than expected. A little bit better. All eyes are on

:06:01. > :06:08.Germany to see what impact they will be, if any, on the Brexit about and

:06:09. > :06:13.the end of it. Ben is covering the story. He is tweeting. The longest

:06:14. > :06:18.rail strike since 1968 has begun. A five-day walk-out by members of the

:06:19. > :06:21.RMT union here in the UK, affecting many travellers on the southern

:06:22. > :06:24.network. So do take a look before you set off if you're not already

:06:25. > :06:26.stuck on a train now. You probably are.

:06:27. > :06:28.Japanese Prime Minister Shinzo Abe that his government would take

:06:29. > :06:30."seriously" Emperor Akihito's hint at a possible future abdication.

:06:31. > :06:33.The Japanese Emperor has expressed concern about his ability to carry

:06:34. > :06:54.Our correspondence is in Singapore. This is not an expected news but an

:06:55. > :06:58.enormous story, isn't it, in Japan? Indeed, Sally. Very significant.

:06:59. > :07:02.Only the second time the Japanese emperor has addressed the people of

:07:03. > :07:09.Japan directly. The first time was after that massive earthquake and

:07:10. > :07:13.tsunami in 2011. As he said, we had a report by Japan's national

:07:14. > :07:17.broadcaster saying he was hoping to abdicate, so there was no major

:07:18. > :07:22.surprise except I personally felt his wording was stronger than

:07:23. > :07:27.expected though it was very carefully worded because, under the

:07:28. > :07:31.post-war constitution of Japan, he is Japan's symbol, and not supposed

:07:32. > :07:35.to make any political statements but he made it clear he is increasingly

:07:36. > :07:41.finding it difficult to fulfil his duties as the Emperor. And after

:07:42. > :07:44.that report, about a month ago, there have been a number of opinion

:07:45. > :07:49.polls and it does seem to suggest the majority of the Japanese public

:07:50. > :07:55.seem to support his desire, if that is the case, so the government will

:07:56. > :08:06.now look at a possible law change to make it happen. OK, thank you. Let's

:08:07. > :08:10.check in with the markets. The same picture right across Asia at the

:08:11. > :08:14.moment, towards one-year highs full to the dollar has strengthened.

:08:15. > :08:16.Expectations of a rate rise are round about 47% after that stunning

:08:17. > :08:21.jobs number we had on Friday. The payroll data signals a recovery

:08:22. > :08:24.in spending power and the overall US economy, and that's

:08:25. > :08:25.driving positive sentiment. This is how the picture has

:08:26. > :08:40.opened up across Europe. Let's have a quick look and speak to

:08:41. > :08:48.our correspondence about Wall Street today. Company United spirits and

:08:49. > :08:53.others supporting financials. The price of oil has been low but it's

:08:54. > :08:57.starting to increase and that could impact the future outlooks for some

:08:58. > :09:05.airlines. Other companies are reporting earnings later this week

:09:06. > :09:11.including Disney, China's online retailer, Ali baba, and American

:09:12. > :09:15.department store Macy's. Speaking of Macy's, US retail sales for July are

:09:16. > :09:20.released this week and these are important since two thirds of the US

:09:21. > :09:24.economy depends on consumer spending. Economists suggest those

:09:25. > :09:28.numbers continued their upward climb and will show that the last three

:09:29. > :09:34.months will be the country's strongest consumer spending numbers

:09:35. > :09:42.since the end of 2014. Thank you. James is with us. Nice to see it.

:09:43. > :09:50.Are you a smooth the kind of man or not? I'm talking about... I don't

:09:51. > :09:54.drink smoothies, put it that way. I'm not an overly healthy person

:09:55. > :09:57.particularly anyway. Healthy eating isn't necessarily one of my forte

:09:58. > :10:03.is. I imagine all your colleagues are grabbing smoothies on the way to

:10:04. > :10:08.the trading floor, surely? Yes, kind. Depends what kind of person

:10:09. > :10:13.you are. I'm trying to push this up as much as I can but mainly coffee.

:10:14. > :10:20.Lots of caffeine. China data and the trade debt, we've not mention that,

:10:21. > :10:25.but it's 21 months in a row of exports coming down for the are we

:10:26. > :10:30.worried? Yes, it is worrying the full Chinese data is it is bad and

:10:31. > :10:35.continues to be bad and the market grabs onto it, big movements on the

:10:36. > :10:39.back of it but then something else comes along, we ignore the negative

:10:40. > :10:43.Chinese data which continues to be there. Once we get strong data out

:10:44. > :10:48.of the US, and something else negative on a Sunday night, from

:10:49. > :10:53.China, we grab onto that straightaway again, but these

:10:54. > :11:00.numbers are bad for the 4.4% down in exports, around 12% in dollar terms,

:11:01. > :11:03.so massive, OK, it's... Market is not necessarily phased but we had

:11:04. > :11:07.good news last week but we got to look for something negative to grab

:11:08. > :11:10.onto. I wonder whether or not be imported picture is a bit more

:11:11. > :11:17.concerning because that had fallen quite a lot and that suggests that a

:11:18. > :11:22.bit of a waning in domestic demand. For the rest of the world, that can

:11:23. > :11:25.be a very big deal. That's the key thing we have in China for the

:11:26. > :11:28.domestically, things are not looking particularly good and anything which

:11:29. > :11:32.has been negative domestically has been helped by the export picture

:11:33. > :11:36.but with both of them being so negative at the moment, it paints a

:11:37. > :11:40.pretty unhealthy picture going forward. China are trying to do

:11:41. > :11:44.something with the economic policy that as we know, monetary policy

:11:45. > :11:49.around the world, poor economic, don't necessarily always help so

:11:50. > :11:51.that the picture we have got. Fire all your bollard early, there's not

:11:52. > :11:58.much you can do when things continue to go wrong. James, thank you. --

:11:59. > :12:04.bullets. I won't be offering you a smoothly, though. A strong coffee.

:12:05. > :12:08.Still to come, making a smoothly a success story. We will meet the

:12:09. > :12:14.fastest-growing smoothie company in the UK and asking what is their

:12:15. > :12:20.recipe for success. You are with business life from BBC News. Let's

:12:21. > :12:23.analyse the fact that in this country apparently, we are a nation

:12:24. > :12:30.of shoppers, restaurant goers, and drinkers. So says various research

:12:31. > :12:34.coming out lately. Yes, a fresh report out today from these for the

:12:35. > :12:38.babe released figures suggesting consumer spending rose last month,

:12:39. > :12:45.despite concerns about the wider economy. Why were their concerns?

:12:46. > :12:50.Brexit. Should I say that word? Ruth Gregory is from capital economic.

:12:51. > :12:53.Why are we spending so much in July? It seems that consumers were

:12:54. > :13:00.enjoying the warm weather in July by spending more on things like new

:13:01. > :13:02.clothing, meals out and day trips. That is quite reassuring given the

:13:03. > :13:09.thoroughly downbeat consumer related services we had recently. It

:13:10. > :13:16.suggests consumer spending held up in July by more than some of these

:13:17. > :13:19.things had originally thought. So perhaps some of these economic

:13:20. > :13:24.reports that are predicting a really rough time ahead for the UK economy

:13:25. > :13:28.might not necessarily be true? I think we should be more cautious

:13:29. > :13:31.about putting weight on just one month's data. If you look at the

:13:32. > :13:35.underlying trend, growth was weaker than earlier in the year so there is

:13:36. > :13:40.still a slowing trend and, given that we have got weaker confidence,

:13:41. > :13:47.the pound has fallen by around 10% since the referendum, which would

:13:48. > :13:51.increase retail prices, and eat into household spending power, we were

:13:52. > :13:55.expecting fairly subdued growth for the rest of this year. What sort of

:13:56. > :14:02.lag time do we normally see between downturns in sentiment and what

:14:03. > :14:07.we've seen from constructor in sector and services, to how it

:14:08. > :14:10.impacts consumers and a real sentiment on the street? Some of the

:14:11. > :14:16.survey evidence we've had so far has been about the especially turbulent

:14:17. > :14:19.period immediately after the referendum so it's not clear how

:14:20. > :14:24.much of this reflects the knee jerk reaction and initial shock factor so

:14:25. > :14:28.it will take some time before we get a feel of what the clear impact has

:14:29. > :14:33.been. Indeed, we won't have any hard data on consumer spending growth

:14:34. > :14:37.until at least September or October. OK, wonderful, thank you very much.

:14:38. > :14:45.Now a quick look at some of the stories on our web page. The CEO of

:14:46. > :14:47.WPP, the highest-paid FTSE 100 boss on the day high pay is

:14:48. > :15:00.controversial. This is the UK's serious fraud

:15:01. > :15:05.Office launches a criminal investigation into Europe's biggest

:15:06. > :15:10.aircraft manufacturer, Airbus. Let's show you how the markets are doing.

:15:11. > :15:14.A new trading week under way. They are headed up and higher in Europe

:15:15. > :15:17.across the board after a strong session overnight in Asia, with the

:15:18. > :15:22.Japan market closing on a high. And now to the world of beverages

:15:23. > :15:25.and health food fads. We're talking Savse smoothies,

:15:26. > :15:27.which is the fastest growing In just three years,

:15:28. > :15:30.the company has turned into a $13 million turnover business

:15:31. > :15:33.And while there's a decline generally in the business,

:15:34. > :15:35.Savse has seen a 600% increase The word 'savse' means crammed full

:15:36. > :15:43.of goodness in Georgian. And the idea came when the founder's

:15:44. > :15:46.mum was pregnant and had to start making her own smoothies

:15:47. > :15:50.to combat iron deficiency - Guka Tavberidsy is the founder

:15:51. > :16:09.and chief executive Welcome to the programme. Thank you.

:16:10. > :16:16.It is a pleasure to be here. This is really your mum's recipe, 38 years

:16:17. > :16:24.in the making. How hard was it to turn from your mum's kitchen into a

:16:25. > :16:28.business? It was very challenging but very exciting. It was around

:16:29. > :16:34.five years ago that I wanted to start something of my own. I wanted

:16:35. > :16:37.to start something with the right values and watch it grow into

:16:38. > :16:45.something spectacular. But I literally had no idea how to start.

:16:46. > :16:48.I had no experience. I had no degree. Just a normal guy with a

:16:49. > :16:54.dreamer wanting to do something on my own. Humble beginnings. The first

:16:55. > :16:58.couple of years of setting up the brand and launching it generally, I

:16:59. > :17:06.was actually sleeping on my mother's couch! That was my meeting room,

:17:07. > :17:09.bedroom, everything. It was quite challenging. But as an early

:17:10. > :17:14.entrepreneur you are willing to do what it takes. You have managed to

:17:15. > :17:20.pull it off. You didn't go to business school. But you were very

:17:21. > :17:26.passionate about your product. How did you manage to get these

:17:27. > :17:29.smoothies from your mum's kitchen onto the shelves of supermarkets in

:17:30. > :17:36.this country, being sold by the millions? The first question I asked

:17:37. > :17:42.myself was, why aren't other companies making smoothies which are

:17:43. > :17:48.nutritious? The drinks were he'd pasteurised, made with powders and

:17:49. > :17:52.additives. Loads of sugar as well. Absolutely. There was definitely a

:17:53. > :17:56.gap in the market. The key challenge for me was how to take this from my

:17:57. > :18:01.mother 's kitchen and put them on the shop floor is without

:18:02. > :18:05.compromising on the taste, quality and nutrition of the drink.

:18:06. > :18:09.Initially I was advised the pasteurisation was the only way. If

:18:10. > :18:14.I didn't follow through on this method, I would not have a business.

:18:15. > :18:18.I absolutely refused, purely because I wanted to stay faithful to the

:18:19. > :18:24.consumers and to the values of my mother, the way she was making them

:18:25. > :18:29.in her kitchen. Some of the bigger, better known competitors, use a

:18:30. > :18:34.different process, a heat pasteurisation process and powders,

:18:35. > :18:38.which is not as authentic and natural. That is why your smoothies

:18:39. > :18:47.are wider bit more to buy them say the bigger names we have heard of.

:18:48. > :18:53.Yes, you are effectively cooking the ingredients to 71 degrees. Once you

:18:54. > :18:57.cook them to 71 degrees twice, you are stripping it of all nutrition

:18:58. > :19:03.left in the drink. The way we make it is totally different. We use cold

:19:04. > :19:08.pressing. You are preparing the ingredients in their natural form.

:19:09. > :19:18.These ingredients are then blended. When they are blended, the recipe is

:19:19. > :19:22.bottled. You have got purple, orange, green, white. Those are

:19:23. > :19:29.similar looking in colour. To lots of others. They are more expensive.

:19:30. > :19:33.Two people who do not know the brand and do not know about the fact that

:19:34. > :19:38.cold press is better for you, why would people go out and buy this one

:19:39. > :19:45.the one that looks really similar to it is maybe ?1, $1 cheaper. Us? This

:19:46. > :19:50.is the challenge we face as a brand. Something we're looking to overcome.

:19:51. > :19:54.It is important to us that we do talks like this and get as much

:19:55. > :19:58.noise out there as possible that cold pressing is better for the

:19:59. > :20:03.consumers. They get a fresher product. So much more to discuss.

:20:04. > :20:06.But we are out of time. Thank you so much for coming in. We wish you all

:20:07. > :20:10.the best. Thank you very much. In a moment, we'll take a look

:20:11. > :20:13.through the Business Pages but first here's a quick reminder of how

:20:14. > :20:20.to get in touch with us. The business life pages where you

:20:21. > :20:25.can stay ahead of all the breaking business news. We will keep you

:20:26. > :20:28.up-to-date with the latest details, with insight and analysis from our

:20:29. > :20:38.team of editors around the world. We want to hear from you. Get involved

:20:39. > :20:48.on the Business Live web page. On Twitter. And on Facebook.

:20:49. > :20:55.We are now going to look at some of the stories in the papers. And they

:20:56. > :21:00.are dominated by one certain individual today, yet again. It is

:21:01. > :21:07.the Republican nominee for the presidential job, Donald Trump. And

:21:08. > :21:13.we have got Jacob here, assistant head at Chatham House. Let's start

:21:14. > :21:17.with a story in the financial Times that lays out the story about what

:21:18. > :21:22.we're going to hear today. Donald Trump will be talking about the

:21:23. > :21:26.economy later. He has had what might be the worst couple of weeks in any

:21:27. > :21:32.moderate presidential campaign history. He got into a lengthy fight

:21:33. > :21:36.with the family of a slain US soldier. He feuded with a baby. It

:21:37. > :21:41.has not been a good couple of weeks. You have seen his popularity sliding

:21:42. > :21:47.and Hillary Clinton's increasing to the extent that she is about seven

:21:48. > :21:52.points ahead. Trump is trying to rebuild his campaign. He is trying

:21:53. > :21:58.to focus on the economy and say, I am the candidate. Previously he has

:21:59. > :22:02.talked about security and protecting America. Now he wants to talk about

:22:03. > :22:07.protecting American jobs and the American economy. Will he convince

:22:08. > :22:12.voters when it comes to the issue of the economy? DfT says one of the

:22:13. > :22:16.things he is going to propose is that he will be able to double

:22:17. > :22:25.growth of the world's biggest economy? Is that feasible? Many say

:22:26. > :22:28.is policies don't add up. His spending plans don't add up. They

:22:29. > :22:34.would add an enormous amount to the deficit. He has not provided

:22:35. > :22:42.anything except for unspecified growth. We don't really know what

:22:43. > :22:49.the impact would be. No one has really tried to turn back the clock

:22:50. > :22:52.on American economic policy the way Trump is talking about, to penalise

:22:53. > :22:58.American companies are outsourcing jobs. There is not a lot of evidence

:22:59. > :23:00.either way. The weight of conventional evidence would suggest

:23:01. > :23:05.he would be adding an enormous amount to the deficit without

:23:06. > :23:10.bringing in Acomb parable amount in terms of tax receipts. Lots of

:23:11. > :23:15.people around the world have been quite surprised by the rise of

:23:16. > :23:19.Trump. People say he has been a lightning rod for populism and

:23:20. > :23:23.anxiety and fear in the country. There is a Wall Street Journal

:23:24. > :23:28.article today about discord, about what voters really care about. This

:23:29. > :23:34.says it is not wages. This is not the problem when it comes to the

:23:35. > :23:40.economy. In a way his economic reboot comes at a bad time. There

:23:41. > :23:44.was a report on jobs which was quite good. The American economy has

:23:45. > :23:47.continued to grow fairly strongly in recent months. That makes it

:23:48. > :23:51.difficult for Trump to sell this message that the economy is broken

:23:52. > :23:56.and only he can fix it. There is a lot of evidence. Trump voters are

:23:57. > :24:02.actually wealthier than the media in America, according to some evidence.

:24:03. > :24:06.Instead of those who are left behind, you have got this much more

:24:07. > :24:11.upwardly mobile group of small business holders who were supporting

:24:12. > :24:17.Trump. That suggests he is trying to appeal to voters who want to see

:24:18. > :24:21.some sort of vague idea of America of the past, to make America great

:24:22. > :24:25.again. It is interesting you should say that. We have all had the

:24:26. > :24:30.assumption that the factory floor man and woman he has been appealing

:24:31. > :24:34.to, those who want to devote four Bernie Sanders but can't now? I

:24:35. > :24:41.don't think there is a lot of crossover between Bernie Sanders

:24:42. > :24:46.folders and Trump voters. Trump is in fourth place among voters under

:24:47. > :24:49.30. Sanders won massive margins among that demographic. Trump is

:24:50. > :24:56.using to the Green Party and Libertarian candidates. A lot of

:24:57. > :25:02.people who voted for sanders will not vote for Trump. There are major

:25:03. > :25:10.issues between Trump and Clinton on the economy. What are they? I would

:25:11. > :25:14.say primarily trade. Clinton is not a born and bred free-trade. She is

:25:15. > :25:21.more willing to countenance it than Trump is. I would say taxes. She

:25:22. > :25:28.wants to increase tax rates. Trump wants to cut them. Clinton for

:25:29. > :25:31.education and Trump for business and manufacturing. Perfectly summarised.

:25:32. > :25:33.You can come back. There will be more business news

:25:34. > :25:38.throughout the day on the BBC Live webpage and on World

:25:39. > :25:40.Business Report.