08/08/2016 BBC Business Live


08/08/2016

Similar Content

Browse content similar to 08/08/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

The UK's Serious Fraud Office has launched an investigation

:00:00.:00:00.

into allegations of fraud, bribery and corruption at Airbus.

:00:00.:00:28.

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

:00:29.:00:33.

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

:00:34.:00:38.

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

:00:39.:00:42.

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

:00:43.:00:47.

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

:00:48.:00:54.

an amazing smoothie success story and meet the fastest-growing

:00:55.:00:57.

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

:00:58.:01:02.

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

:01:03.:01:09.

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

:01:10.:01:11.

us. The UK's Serious Fraud Office has

:01:12.:01:24.

launched an investigation into allegations of fraud,

:01:25.:01:26.

bribery and corruption involving The allegations relate

:01:27.:01:28.

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

:01:29.:01:38.

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

:01:39.:01:41.

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

:01:42.:01:45.

this according to a report Tell us more about this

:01:46.:02:03.

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

:02:04.:02:07.

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

:02:08.:02:12.

authorities because it found inaccuracies in the applications it

:02:13.:02:16.

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

:02:17.:02:21.

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

:02:22.:02:26.

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

:02:27.:02:30.

saying the Serious Fraud Office has launched a criminal investigation

:02:31.:02:33.

looking at fraud, bribery and corruption. Potentially very serious

:02:34.:02:41.

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

:02:42.:02:44.

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

:02:45.:02:49.

companies such as Airbus is exporting something abroad and it

:02:50.:02:53.

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

:02:54.:02:56.

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

:02:57.:03:02.

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

:03:03.:03:10.

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

:03:11.:03:13.

inaccuracies earlier this year, Britain has frozen new applications

:03:14.:03:18.

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

:03:19.:03:24.

some kind of financial impact. Clearly some serious ramifications

:03:25.:03:27.

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

:03:28.:03:32.

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

:03:33.:03:37.

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

:03:38.:03:41.

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

:03:42.:03:44.

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

:03:45.:03:50.

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

:03:51.:03:54.

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

:03:55.:03:57.

great global battle with its archrival Boeing to dominate the

:03:58.:04:05.

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

:04:06.:04:08.

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

:04:09.:04:17.

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

:04:18.:04:20.

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

:04:21.:04:25.

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

:04:26.:04:31.

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

:04:32.:04:36.

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

:04:37.:04:40.

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

:04:41.:04:46.

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

:04:47.:04:50.

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

:04:51.:04:58.

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

:04:59.:05:01.

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

:05:02.:05:03.

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

:05:04.:05:05.

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

:05:06.:05:08.

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

:05:09.:05:11.

proposed a crackdown on excessive boardroom salaries.

:05:12.:05:21.

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

:05:22.:05:29.

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

:05:30.:05:34.

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

:05:35.:05:40.

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

:05:41.:05:43.

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

:05:44.:05:47.

what would happen with German growth. We have German production

:05:48.:05:51.

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

:05:52.:05:57.

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

:05:58.:06:00.

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

:06:01.:06:08.

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

:06:09.:06:13.

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

:06:14.:06:18.

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

:06:19.:06:21.

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

:06:22.:06:24.

stuck on a train now. You probably are.

:06:25.:06:26.

Japanese Prime Minister Shinzo Abe that his government would take

:06:27.:06:28.

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

:06:29.:06:30.

The Japanese Emperor has expressed concern about his ability to carry

:06:31.:06:33.

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

:06:34.:06:54.

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

:06:55.:06:58.

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

:06:59.:07:02.

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

:07:03.:07:09.

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

:07:10.:07:13.

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

:07:14.:07:17.

surprise except I personally felt his wording was stronger than

:07:18.:07:22.

expected though it was very carefully worded because, under the

:07:23.:07:27.

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

:07:28.:07:31.

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

:07:32.:07:35.

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

:07:36.:07:41.

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

:07:42.:07:44.

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

:07:45.:07:49.

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

:07:50.:07:55.

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

:07:56.:08:06.

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

:08:07.:08:10.

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

:08:11.:08:14.

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

:08:15.:08:16.

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

:08:17.:08:21.

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

:08:22.:08:24.

driving positive sentiment. This is how the picture has

:08:25.:08:25.

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

:08:26.:08:40.

our correspondence about Wall Street today. Company United spirits and

:08:41.:08:48.

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

:08:49.:08:53.

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

:08:54.:08:57.

airlines. Other companies are reporting earnings later this week

:08:58.:09:05.

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

:09:06.:09:11.

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

:09:12.:09:15.

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

:09:16.:09:20.

economy depends on consumer spending. Economists suggest those

:09:21.:09:24.

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

:09:25.:09:28.

months will be the country's strongest consumer spending numbers

:09:29.:09:34.

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

:09:35.:09:42.

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

:09:43.:09:50.

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

:09:51.:09:54.

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

:09:55.:09:57.

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

:09:58.:10:03.

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

:10:04.:10:08.

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

:10:09.:10:13.

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

:10:14.:10:20.

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

:10:21.:10:25.

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

:10:26.:10:30.

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

:10:31.:10:35.

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

:10:36.:10:39.

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

:10:40.:10:43.

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

:10:44.:10:48.

China, we grab onto that straightaway again, but these

:10:49.:10:53.

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

:10:54.:11:00.

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

:11:01.:11:03.

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

:11:04.:11:07.

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

:11:08.:11:10.

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

:11:11.:11:17.

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

:11:18.:11:22.

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

:11:23.:11:25.

domestically, things are not looking particularly good and anything which

:11:26.:11:28.

has been negative domestically has been helped by the export picture

:11:29.:11:32.

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

:11:33.:11:36.

pretty unhealthy picture going forward. China are trying to do

:11:37.:11:40.

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

:11:41.:11:44.

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

:11:45.:11:49.

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

:11:50.:11:51.

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

:11:52.:11:58.

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

:11:59.:12:04.

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

:12:05.:12:08.

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

:12:09.:12:14.

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

:12:15.:12:20.

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

:12:21.:12:23.

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

:12:24.:12:30.

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

:12:31.:12:34.

babe released figures suggesting consumer spending rose last month,

:12:35.:12:38.

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

:12:39.:12:45.

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

:12:46.:12:50.

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

:12:51.:12:53.

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

:12:54.:13:00.

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

:13:01.:13:02.

thoroughly downbeat consumer related services we had recently. It

:13:03.:13:09.

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

:13:10.:13:16.

things had originally thought. So perhaps some of these economic

:13:17.:13:19.

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

:13:20.:13:24.

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

:13:25.:13:28.

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

:13:29.:13:31.

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

:13:32.:13:35.

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

:13:36.:13:40.

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

:13:41.:13:47.

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

:13:48.:13:51.

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

:13:52.:13:55.

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

:13:56.:14:02.

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

:14:03.:14:07.

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

:14:08.:14:10.

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

:14:11.:14:16.

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

:14:17.:14:19.

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

:14:20.:14:24.

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

:14:25.:14:28.

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

:14:29.:14:33.

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

:14:34.:14:37.

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

:14:38.:14:45.

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

:14:46.:14:47.

controversial. This is the UK's serious fraud

:14:48.:15:00.

Office launches a criminal investigation into Europe's biggest

:15:01.:15:05.

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

:15:06.:15:10.

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

:15:11.:15:14.

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

:15:15.:15:17.

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

:15:18.:15:22.

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

:15:23.:15:25.

which is the fastest growing In just three years,

:15:26.:15:27.

the company has turned into a $13 million turnover business

:15:28.:15:30.

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

:15:31.:15:33.

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

:15:34.:15:35.

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

:15:36.:15:43.

mum was pregnant and had to start making her own smoothies

:15:44.:15:46.

to combat iron deficiency - Guka Tavberidsy is the founder

:15:47.:15:50.

and chief executive Welcome to the programme. Thank you.

:15:51.:16:09.

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

:16:10.:16:16.

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

:16:17.:16:24.

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

:16:25.:16:28.

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

:16:29.:16:34.

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

:16:35.:16:37.

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

:16:38.:16:45.

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

:16:46.:16:48.

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

:16:49.:16:54.

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

:16:55.:16:58.

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

:16:59.:17:06.

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

:17:07.:17:09.

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

:17:10.:17:14.

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

:17:15.:17:20.

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

:17:21.:17:26.

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

:17:27.:17:29.

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

:17:30.:17:36.

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

:17:37.:17:42.

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

:17:43.:17:48.

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

:17:49.:17:52.

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

:17:53.:17:56.

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

:17:57.:18:01.

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

:18:02.:18:05.

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

:18:06.:18:09.

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

:18:10.:18:14.

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

:18:15.:18:18.

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

:18:19.:18:24.

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

:18:25.:18:29.

different process, a heat pasteurisation process and powders,

:18:30.:18:34.

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

:18:35.:18:38.

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

:18:39.:18:47.

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

:18:48.:18:53.

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

:18:54.:18:57.

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

:18:58.:19:03.

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

:19:04.:19:08.

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

:19:09.:19:18.

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

:19:19.:19:22.

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

:19:23.:19:29.

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

:19:30.:19:33.

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

:19:34.:19:38.

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

:19:39.:19:45.

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

:19:46.:19:50.

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

:19:51.:19:54.

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

:19:55.:19:58.

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

:19:59.:20:03.

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

:20:04.:20:06.

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

:20:07.:20:10.

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

:20:11.:20:13.

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

:20:14.:20:20.

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

:20:21.:20:25.

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

:20:26.:20:28.

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

:20:29.:20:38.

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

:20:39.:20:48.

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

:20:49.:20:55.

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

:20:56.:21:00.

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

:21:01.:21:07.

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

:21:08.:21:13.

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

:21:14.:21:17.

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

:21:18.:21:22.

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

:21:23.:21:26.

moderate presidential campaign history. He got into a lengthy fight

:21:27.:21:32.

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

:21:33.:21:36.

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

:21:37.:21:41.

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

:21:42.:21:47.

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

:21:48.:21:52.

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

:21:53.:21:58.

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

:21:59.:22:02.

protecting American jobs and the American economy. Will he convince

:22:03.:22:07.

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

:22:08.:22:12.

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

:22:13.:22:16.

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

:22:17.:22:25.

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

:22:26.:22:28.

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

:22:29.:22:34.

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

:22:35.:22:42.

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

:22:43.:22:49.

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

:22:50.:22:52.

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

:22:53.:22:58.

either way. The weight of conventional evidence would suggest

:22:59.:23:00.

he would be adding an enormous amount to the deficit without

:23:01.:23:05.

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

:23:06.:23:10.

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

:23:11.:23:15.

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

:23:16.:23:19.

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

:23:20.:23:23.

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

:23:24.:23:28.

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

:23:29.:23:34.

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

:23:35.:23:40.

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

:23:41.:23:44.

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

:23:45.:23:47.

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

:23:48.:23:51.

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

:23:52.:23:56.

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

:23:57.:24:02.

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

:24:03.:24:06.

upwardly mobile group of small business holders who were supporting

:24:07.:24:11.

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

:24:12.:24:17.

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

:24:18.:24:21.

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

:24:22.:24:25.

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

:24:26.:24:30.

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

:24:31.:24:34.

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

:24:35.:24:41.

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

:24:42.:24:46.

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

:24:47.:24:49.

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

:24:50.:24:56.

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

:24:57.:25:02.

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

:25:03.:25:10.

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

:25:11.:25:14.

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

:25:15.:25:21.

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

:25:22.:25:28.

education and Trump for business and manufacturing. Perfectly summarised.

:25:29.:25:31.

You can come back. There will be more business news

:25:32.:25:33.

throughout the day on the BBC Live webpage and on World

:25:34.:25:38.

Business Report.

:25:39.:25:40.

Download Subtitles

SRT

ASS