08/08/2016 BBC Business Live


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The UK's Serious Fraud Office has launched an investigation


into allegations of fraud, bribery and corruption at Airbus.


Also in the programme, building walls and trashing trade agreements.


Donald Trump laying out his economic plans for the world's biggest


economy. We have the latest from the markets where Asian markets hit a


high for the year following the Wall Street stunning job figures in the


USA on Friday. Does that make you thirsty or even hungry? We will hear


an amazing smoothie success story and meet the fastest-growing


smoothie company in the UK and ask what is their winning recipe? We


want to hear from you, too. Do you buy into the story or perhaps you


are an addict or believe it is a fad which will pass. Get in touch with


us. The UK's Serious Fraud Office has


launched an investigation into allegations of fraud,


bribery and corruption involving The allegations relate


to irregularities concerning the use Airbus said it was co-operating


with the probe, which was The bosses of Britain's biggest


companies now take home an average of around $7.2m per year-


this according to a report Tell us more about this


investigation. We know that air bus was carrying out an internal


compliance review and back in April, it reported itself to the


authorities because it found inaccuracies in the applications it


had been making for exporter credit guarantees from the UK Government,


so Airbus has been talking about this in recent months and we know


that last night, late on Sunday in the UK, Airbus put out a statement


saying the Serious Fraud Office has launched a criminal investigation


looking at fraud, bribery and corruption. Potentially very serious


allegations indeed. For those were not familiar, explain how these


exporter credits work and where the third parties come in? This is where


companies such as Airbus is exporting something abroad and it


may well be you need some kind of financial guarantee to make sure


that sale takes place, until you apply to the agency and the country


concerned. We know 6% of Airbus sales were guaranteed by exporter


credit finance but, since the Airbus notified the authorities about these


inaccuracies earlier this year, Britain has frozen new applications


and so has France and Germany as well. So this does potentially have


some kind of financial impact. Clearly some serious ramifications


for the company but what happens next? What is the next stage of


this? The Serious Fraud Office can take an incredibly long time.


Rolls-Royce has had a separate investigation by the SFO and it's


already been going on for about four years so Airbus may well not know


the outcome of this for quite some time. Of course, this could be a


blow to the company, not just in terms of access to export credit


guarantees, but also reputations as well, because Airbus is locked in a


great global battle with its archrival Boeing to dominate the


battle for passenger jets and this could mean the company takes a hit


to its reputation. More detail on that on the website. Shares are


falling in early trade. Let's check on some other news for you. The


Chinese economy has shown further signs of weakness. The latest trade


figures came in worse than expected exports shrinking for the 21st month


in a row. Experts fell 4% in July, worse than expectations in dollar


terms. China is a crucial driver of the worldwide economy so the data is


seen as a snapshot of a global outlook and that uncertainty ranging


from commodity prices to the EU debt crisis and the UK leaving the EU


bloc continues to mute some activity around the world. The bosses of


Britain's biggest companies take home on average $7.2 million per


year according to a report by the UK high pay centre.


The study found that chief executives of firms on London's FTSE


100 index saw their mean average income rise by 10% in 2015.


The findings come just weeks after the UK's new prime minister


proposed a crackdown on excessive boardroom salaries.


You can imagine it's got a lot of people and their tongues wagging


today both for and against the high pay. It's a big story on our website


as well as our other stories. We have some data which is just come in


early today, German industrial production, of course, Germany is a


big trade partner with the UK, so there has been some concern about


what would happen with German growth. We have German production


figures here, growing again in June before the referendum result.


Slightly better than expected. A little bit better. All eyes are on


Germany to see what impact they will be, if any, on the Brexit about and


the end of it. Ben is covering the story. He is tweeting. The longest


rail strike since 1968 has begun. A five-day walk-out by members of the


RMT union here in the UK, affecting many travellers on the southern


network. So do take a look before you set off if you're not already


stuck on a train now. You probably are.


Japanese Prime Minister Shinzo Abe that his government would take


"seriously" Emperor Akihito's hint at a possible future abdication.


The Japanese Emperor has expressed concern about his ability to carry


Our correspondence is in Singapore. This is not an expected news but an


enormous story, isn't it, in Japan? Indeed, Sally. Very significant.


Only the second time the Japanese emperor has addressed the people of


Japan directly. The first time was after that massive earthquake and


tsunami in 2011. As he said, we had a report by Japan's national


broadcaster saying he was hoping to abdicate, so there was no major


surprise except I personally felt his wording was stronger than


expected though it was very carefully worded because, under the


post-war constitution of Japan, he is Japan's symbol, and not supposed


to make any political statements but he made it clear he is increasingly


finding it difficult to fulfil his duties as the Emperor. And after


that report, about a month ago, there have been a number of opinion


polls and it does seem to suggest the majority of the Japanese public


seem to support his desire, if that is the case, so the government will


now look at a possible law change to make it happen. OK, thank you. Let's


check in with the markets. The same picture right across Asia at the


moment, towards one-year highs full to the dollar has strengthened.


Expectations of a rate rise are round about 47% after that stunning


jobs number we had on Friday. The payroll data signals a recovery


in spending power and the overall US economy, and that's


driving positive sentiment. This is how the picture has


opened up across Europe. Let's have a quick look and speak to


our correspondence about Wall Street today. Company United spirits and


others supporting financials. The price of oil has been low but it's


starting to increase and that could impact the future outlooks for some


airlines. Other companies are reporting earnings later this week


including Disney, China's online retailer, Ali baba, and American


department store Macy's. Speaking of Macy's, US retail sales for July are


released this week and these are important since two thirds of the US


economy depends on consumer spending. Economists suggest those


numbers continued their upward climb and will show that the last three


months will be the country's strongest consumer spending numbers


since the end of 2014. Thank you. James is with us. Nice to see it.


Are you a smooth the kind of man or not? I'm talking about... I don't


drink smoothies, put it that way. I'm not an overly healthy person


particularly anyway. Healthy eating isn't necessarily one of my forte


is. I imagine all your colleagues are grabbing smoothies on the way to


the trading floor, surely? Yes, kind. Depends what kind of person


you are. I'm trying to push this up as much as I can but mainly coffee.


Lots of caffeine. China data and the trade debt, we've not mention that,


but it's 21 months in a row of exports coming down for the are we


worried? Yes, it is worrying the full Chinese data is it is bad and


continues to be bad and the market grabs onto it, big movements on the


back of it but then something else comes along, we ignore the negative


Chinese data which continues to be there. Once we get strong data out


of the US, and something else negative on a Sunday night, from


China, we grab onto that straightaway again, but these


numbers are bad for the 4.4% down in exports, around 12% in dollar terms,


so massive, OK, it's... Market is not necessarily phased but we had


good news last week but we got to look for something negative to grab


onto. I wonder whether or not be imported picture is a bit more


concerning because that had fallen quite a lot and that suggests that a


bit of a waning in domestic demand. For the rest of the world, that can


be a very big deal. That's the key thing we have in China for the


domestically, things are not looking particularly good and anything which


has been negative domestically has been helped by the export picture


but with both of them being so negative at the moment, it paints a


pretty unhealthy picture going forward. China are trying to do


something with the economic policy that as we know, monetary policy


around the world, poor economic, don't necessarily always help so


that the picture we have got. Fire all your bollard early, there's not


much you can do when things continue to go wrong. James, thank you. --


bullets. I won't be offering you a smoothly, though. A strong coffee.


Still to come, making a smoothly a success story. We will meet the


fastest-growing smoothie company in the UK and asking what is their


recipe for success. You are with business life from BBC News. Let's


analyse the fact that in this country apparently, we are a nation


of shoppers, restaurant goers, and drinkers. So says various research


coming out lately. Yes, a fresh report out today from these for the


babe released figures suggesting consumer spending rose last month,


despite concerns about the wider economy. Why were their concerns?


Brexit. Should I say that word? Ruth Gregory is from capital economic.


Why are we spending so much in July? It seems that consumers were


enjoying the warm weather in July by spending more on things like new


clothing, meals out and day trips. That is quite reassuring given the


thoroughly downbeat consumer related services we had recently. It


suggests consumer spending held up in July by more than some of these


things had originally thought. So perhaps some of these economic


reports that are predicting a really rough time ahead for the UK economy


might not necessarily be true? I think we should be more cautious


about putting weight on just one month's data. If you look at the


underlying trend, growth was weaker than earlier in the year so there is


still a slowing trend and, given that we have got weaker confidence,


the pound has fallen by around 10% since the referendum, which would


increase retail prices, and eat into household spending power, we were


expecting fairly subdued growth for the rest of this year. What sort of


lag time do we normally see between downturns in sentiment and what


we've seen from constructor in sector and services, to how it


impacts consumers and a real sentiment on the street? Some of the


survey evidence we've had so far has been about the especially turbulent


period immediately after the referendum so it's not clear how


much of this reflects the knee jerk reaction and initial shock factor so


it will take some time before we get a feel of what the clear impact has


been. Indeed, we won't have any hard data on consumer spending growth


until at least September or October. OK, wonderful, thank you very much.


Now a quick look at some of the stories on our web page. The CEO of


WPP, the highest-paid FTSE 100 boss on the day high pay is


controversial. This is the UK's serious fraud


Office launches a criminal investigation into Europe's biggest


aircraft manufacturer, Airbus. Let's show you how the markets are doing.


A new trading week under way. They are headed up and higher in Europe


across the board after a strong session overnight in Asia, with the


Japan market closing on a high. And now to the world of beverages


and health food fads. We're talking Savse smoothies,


which is the fastest growing In just three years,


the company has turned into a $13 million turnover business


And while there's a decline generally in the business,


Savse has seen a 600% increase The word 'savse' means crammed full


of goodness in Georgian. And the idea came when the founder's


mum was pregnant and had to start making her own smoothies


to combat iron deficiency - Guka Tavberidsy is the founder


and chief executive Welcome to the programme. Thank you.


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


in the making. How hard was it to turn from your mum's kitchen into a


business? It was very challenging but very exciting. It was around


five years ago that I wanted to start something of my own. I wanted


to start something with the right values and watch it grow into


something spectacular. But I literally had no idea how to start.


I had no experience. I had no degree. Just a normal guy with a


dreamer wanting to do something on my own. Humble beginnings. The first


couple of years of setting up the brand and launching it generally, I


was actually sleeping on my mother's couch! That was my meeting room,


bedroom, everything. It was quite challenging. But as an early


entrepreneur you are willing to do what it takes. You have managed to


pull it off. You didn't go to business school. But you were very


passionate about your product. How did you manage to get these


smoothies from your mum's kitchen onto the shelves of supermarkets in


this country, being sold by the millions? The first question I asked


myself was, why aren't other companies making smoothies which are


nutritious? The drinks were he'd pasteurised, made with powders and


additives. Loads of sugar as well. Absolutely. There was definitely a


gap in the market. The key challenge for me was how to take this from my


mother 's kitchen and put them on the shop floor is without


compromising on the taste, quality and nutrition of the drink.


Initially I was advised the pasteurisation was the only way. If


I didn't follow through on this method, I would not have a business.


I absolutely refused, purely because I wanted to stay faithful to the


consumers and to the values of my mother, the way she was making them


in her kitchen. Some of the bigger, better known competitors, use a


different process, a heat pasteurisation process and powders,


which is not as authentic and natural. That is why your smoothies


are wider bit more to buy them say the bigger names we have heard of.


Yes, you are effectively cooking the ingredients to 71 degrees. Once you


cook them to 71 degrees twice, you are stripping it of all nutrition


left in the drink. The way we make it is totally different. We use cold


pressing. You are preparing the ingredients in their natural form.


These ingredients are then blended. When they are blended, the recipe is


bottled. You have got purple, orange, green, white. Those are


similar looking in colour. To lots of others. They are more expensive.


Two people who do not know the brand and do not know about the fact that


cold press is better for you, why would people go out and buy this one


the one that looks really similar to it is maybe ?1, $1 cheaper. Us? This


is the challenge we face as a brand. Something we're looking to overcome.


It is important to us that we do talks like this and get as much


noise out there as possible that cold pressing is better for the


consumers. They get a fresher product. So much more to discuss.


But we are out of time. Thank you so much for coming in. We wish you all


the best. Thank you very much. In a moment, we'll take a look


through the Business Pages but first here's a quick reminder of how


to get in touch with us. The business life pages where you


can stay ahead of all the breaking business news. We will keep you


up-to-date with the latest details, with insight and analysis from our


team of editors around the world. We want to hear from you. Get involved


on the Business Live web page. On Twitter. And on Facebook.


We are now going to look at some of the stories in the papers. And they


are dominated by one certain individual today, yet again. It is


the Republican nominee for the presidential job, Donald Trump. And


we have got Jacob here, assistant head at Chatham House. Let's start


with a story in the financial Times that lays out the story about what


we're going to hear today. Donald Trump will be talking about the


economy later. He has had what might be the worst couple of weeks in any


moderate presidential campaign history. He got into a lengthy fight


with the family of a slain US soldier. He feuded with a baby. It


has not been a good couple of weeks. You have seen his popularity sliding


and Hillary Clinton's increasing to the extent that she is about seven


points ahead. Trump is trying to rebuild his campaign. He is trying


to focus on the economy and say, I am the candidate. Previously he has


talked about security and protecting America. Now he wants to talk about


protecting American jobs and the American economy. Will he convince


voters when it comes to the issue of the economy? DfT says one of the


things he is going to propose is that he will be able to double


growth of the world's biggest economy? Is that feasible? Many say


is policies don't add up. His spending plans don't add up. They


would add an enormous amount to the deficit. He has not provided


anything except for unspecified growth. We don't really know what


the impact would be. No one has really tried to turn back the clock


on American economic policy the way Trump is talking about, to penalise


American companies are outsourcing jobs. There is not a lot of evidence


either way. The weight of conventional evidence would suggest


he would be adding an enormous amount to the deficit without


bringing in Acomb parable amount in terms of tax receipts. Lots of


people around the world have been quite surprised by the rise of


Trump. People say he has been a lightning rod for populism and


anxiety and fear in the country. There is a Wall Street Journal


article today about discord, about what voters really care about. This


says it is not wages. This is not the problem when it comes to the


economy. In a way his economic reboot comes at a bad time. There


was a report on jobs which was quite good. The American economy has


continued to grow fairly strongly in recent months. That makes it


difficult for Trump to sell this message that the economy is broken


and only he can fix it. There is a lot of evidence. Trump voters are


actually wealthier than the media in America, according to some evidence.


Instead of those who are left behind, you have got this much more


upwardly mobile group of small business holders who were supporting


Trump. That suggests he is trying to appeal to voters who want to see


some sort of vague idea of America of the past, to make America great


again. It is interesting you should say that. We have all had the


assumption that the factory floor man and woman he has been appealing


to, those who want to devote four Bernie Sanders but can't now? I


don't think there is a lot of crossover between Bernie Sanders


folders and Trump voters. Trump is in fourth place among voters under


30. Sanders won massive margins among that demographic. Trump is


using to the Green Party and Libertarian candidates. A lot of


people who voted for sanders will not vote for Trump. There are major


issues between Trump and Clinton on the economy. What are they? I would


say primarily trade. Clinton is not a born and bred free-trade. She is


more willing to countenance it than Trump is. I would say taxes. She


wants to increase tax rates. Trump wants to cut them. Clinton for


education and Trump for business and manufacturing. Perfectly summarised.


You can come back. There will be more business news


throughout the day on the BBC Live webpage and on World


Business Report.


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