11/08/2016

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:00:00. > :00:14.This is Business Live from BBC News with Ben Thompson and Sally Bundock.

:00:15. > :00:25.The Chinese e-commerce site Alibaba dominates the mainland, but it is

:00:26. > :00:28.expected to announce a rise in revenues today.

:00:29. > :00:37.Live from London, that's our top story on Thursday 11th August.

:00:38. > :00:41.Storing your data in the cloud - it's key area of growth

:00:42. > :00:44.for the Chinese internet giant Alibaba.

:00:45. > :00:46.The firm is also hoping to expand its retail presence

:00:47. > :00:49.with Australia at the top of the list.

:00:50. > :00:51.We'll be looking at its plans for global expansion.

:00:52. > :00:56.Are the curtains falling on China's cinema boom?

:00:57. > :00:58.July ticket sales tumbled - adding to the ongoing

:00:59. > :01:09.We will explain. European markets have looked like this in the first

:01:10. > :01:10.45 minutes of trade, we will have the details.

:01:11. > :01:17.And from being an executive at one of the world's biggest advertising

:01:18. > :01:19.agencies to setting up a youth summit dubbed the Davos

:01:20. > :01:22.We'll find out why founder Kate Robertson moved

:01:23. > :01:33.And, apparently we are not going to the movies as much as we were. Have

:01:34. > :01:35.you moved online? Let us know - just use the hashtag

:01:36. > :01:46.#BBCBizLive. Working the hours that we do, I can

:01:47. > :01:49.never stay awake for any film at the cinema!

:01:50. > :01:51.We start with the tech giant Alibaba.

:01:52. > :01:54.In a few hours, the world's biggest e-commerce firm is expected

:01:55. > :01:55.to post strong revenues in its latest results.

:01:56. > :01:58.It's based in China but can it fulfil its ambitions of becoming

:01:59. > :02:05.Analysts say the online marketplace - a cross between Ebay,

:02:06. > :02:08.Amazon and PayPal - will see its revenue for the first

:02:09. > :02:16.It's cloud computing business - AliCloud - is expected to be

:02:17. > :02:22.Earlier this year it announced it had reached half-a-million

:02:23. > :02:26.It now hopes to challenge industry giants like Microsoft

:02:27. > :02:31.But its global ambitions go beyond the cloud.

:02:32. > :02:40.Alibaba says Australia is also a big part of its expansion plans -

:02:41. > :02:43.and it hopes to open an office in Melbourne by the end

:02:44. > :02:48.Ben Preston, e-commerce analyst at the consultants

:02:49. > :03:00.Then outlining that Alibaba is growing, getting bigger, but what

:03:01. > :03:04.about its international plans? You are right, first of all what an

:03:05. > :03:08.extraordinary success story it has been. Alibaba is only 17 years old

:03:09. > :03:12.and in that relatively short period of time it has grown to become not

:03:13. > :03:19.only the largest e-commerce retailer in China but the entire world. As

:03:20. > :03:20.they move on, as you rightly say, towards international markets, the

:03:21. > :03:24.challenge for them is to replicate challenge for them is to replicate

:03:25. > :03:44.the success they have had in China and do that

:03:45. > :03:48.in new markets all over again. How will they pull that off? Many of us

:03:49. > :03:51.have heard of Alibaba, that is one hurdle, but the other is the fact

:03:52. > :03:54.that those of us outside of China are used to Amazon, eBay and others,

:03:55. > :03:57.we have got our details with them, we rely on them, trust them. How

:03:58. > :03:59.will they move into our world? It is one thing to grow as the market

:04:00. > :04:01.leader, quite a different matter to gain customers away from an existing

:04:02. > :04:05.market leader. An example, Alibaba tried to enter the US a couple of

:04:06. > :04:07.years ago but had no success after a year. Likewise, Amazon try to go

:04:08. > :04:10.into China and saw no success. As a customer, once you have got your

:04:11. > :04:16.delivery details, credit card details entered, you trust the

:04:17. > :04:20.retailer to deliver on time, you need something special to persuade

:04:21. > :04:24.you to change your mind. Just because you have success in one

:04:25. > :04:31.market, it does not guarantee you can replicated elsewhere. How will

:04:32. > :04:33.Alibaba you are as? They will make acquisitions of existing market

:04:34. > :04:41.players so they can get existing users. There will also send us

:04:42. > :04:45.marketing offers and so forth to try and encourage us. Will it just be

:04:46. > :04:51.about price? It cannot just be about price, date have to offer something

:04:52. > :04:55.special. Amazon is not just about price, we trust them as retailers.

:04:56. > :04:59.As long-term investors we have to identify the retailers that will win

:05:00. > :05:04.because they offer price and trust and service and quality all in one

:05:05. > :05:08.place. OK, thank you so much for coming in and giving us your views

:05:09. > :05:12.on Alibaba, result out later, we will update you when we get them.

:05:13. > :05:18.Some of the shine has come off the silver screen in China

:05:19. > :05:20.after a 15% fall in cinema attendance in July,

:05:21. > :05:22.on top of an ongoing downturn box office takings.

:05:23. > :05:25.The slowdown comes in the wake of more than 50% growth last year.

:05:26. > :05:28.Ticket sales in the three months to June fell by 10%,

:05:29. > :05:32.marking the first drop in as many as five years.

:05:33. > :05:35.The UK housing market has weakened following the referendum vote

:05:36. > :05:38.to leave the European Union, according to the Royal Institution

:05:39. > :05:42.Its July survey points to the biggest drop in transactions

:05:43. > :05:45.since the global financial crisis in 2008.

:05:46. > :05:47.Prices continued to rise nationally, but at the slowest

:05:48. > :05:53.pace in three years - and actually fell in London.

:05:54. > :05:55.South Korea's Samsung has denied withholding crucial information

:05:56. > :05:57.from workers about chemicals they may have been exposed

:05:58. > :06:07.The families of workers say there are about 200 cases

:06:08. > :06:11.of employees contracting serious diseases.

:06:12. > :06:13.Samsung said the safety of its workers was its

:06:14. > :06:21.It says the allegations are not true.

:06:22. > :06:26.As always, there are many stories and we cannot cover them all, but if

:06:27. > :06:31.you want to get across just about everything in business you can go to

:06:32. > :06:37.the Business Live page. This is the company that organises the bottling

:06:38. > :06:40.of Coca-Cola soft drinks. It is a FTSE 100 company and has done

:06:41. > :06:46.extremely well in the sense that it bottled more than 1 billion cases in

:06:47. > :06:52.the last six months in 28 countries. That gave it a sales of 3 billion

:06:53. > :06:55.euros, first half profits were roughly flat, though, for the

:06:56. > :07:05.Coca-Cola bottling Company. Full details on the website and

:07:06. > :07:09.worth looking at this story here, TUI, the biggest travel operator in

:07:10. > :07:16.Europe, worries about the failed coup in Turkey there, it worries

:07:17. > :07:20.that sales growth this year will be between two and 3% rather than the

:07:21. > :07:27.5% previously expected. That is all on our website.

:07:28. > :07:29.Singapore has some lacklustre numbers out this morning-its shaved

:07:30. > :07:32.off a full 1% from its growth forecast for 2016 -

:07:33. > :07:34.and it's now estimated at between 1% to 2%.

:07:35. > :07:36.The economy grew by 2.1% in the second quarter

:07:37. > :07:39.compared to a year ago, which is also lower than forecast.

:07:40. > :07:48.The interesting thing about Singapore, as you can see behind me,

:07:49. > :07:54.it is seen as a bellwether for the region, how Singapore is doing.

:07:55. > :07:58.Indeed, you are right, it is often among the first to signal a slowdown

:07:59. > :08:01.as it is such a financial and trading centre, as you can see from

:08:02. > :08:06.all of these buildings behind big, it reflects what is going on

:08:07. > :08:10.elsewhere far quicker. The government has cut its economic

:08:11. > :08:18.growth forecast to 1%, 2%, it was previously stated as closer to 3%,

:08:19. > :08:23.and economists are projecting Singapore could see its slowest pace

:08:24. > :08:27.of growth since the financial crisis of 2009, in line with what the

:08:28. > :08:31.government has projected as well. Trade and industry blaming concerns

:08:32. > :08:39.of a Brexit weakening global growth, also said they are worried about the

:08:40. > :08:43.rise in debt default in China, the economy expanded 2.1% in the second

:08:44. > :08:47.quarter, slower than initial estimate as well.

:08:48. > :08:51.As always, thank you. You saw it on the screen there, but

:08:52. > :08:57.confirmation of what the Asian markets did overnight. New

:08:58. > :09:01.indications of oversupply in the oil market remaining problem. All of

:09:02. > :09:04.that on top of lower global outlook is for growth.

:09:05. > :09:06.The dollar also fell against other major currencies overnight

:09:07. > :09:09.as expectations of a US rate interest rate hike in the near

:09:10. > :09:23.European markets look like this in the first 35 minutes.

:09:24. > :09:26.Yesterday was a real mixed session, with the FTSE 100 managing to finish

:09:27. > :09:28.the day higher, largely as a result of a weak pound.

:09:29. > :09:32.It's a pretty light day for economic data - so make the most of it

:09:33. > :09:36.But the latest weekly jobs data is due in the US.

:09:37. > :09:38.Samira has the details about what's ahead on Wall Street today.

:09:39. > :09:40.The Republican presidential candidate did it on Monday.

:09:41. > :09:42.It's time now for the Democratic presidential candidate

:09:43. > :09:46.Hillary Clinton will outline her plans for America's economy

:09:47. > :09:49.at a manufacturing plant in the state of Michigan.

:09:50. > :09:53.The Clinton campaign said the speech will offer a stark contrast

:09:54. > :10:01.to Donald Trump's economic policies, which he laid out in a speech before

:10:02. > :10:04.Also happening on Thursday, three of the biggest US

:10:05. > :10:10.department store operators will be reporting earnings.

:10:11. > :10:13.The better weather in June and July is expected to have helped

:10:14. > :10:16.the bottom lines of Macy's, Coles and Nordstrom.

:10:17. > :10:19.Investors are hoping it will make up for the last quarter,

:10:20. > :10:23.where retailers really took a big hit.

:10:24. > :10:25.And finally import prices for the month of July.

:10:26. > :10:28.Economists are expecting that the strong US dollar

:10:29. > :10:40.and weak oil prices put pressure on inflation.

:10:41. > :10:43.Touching on a theme for the markets this week, oil prices falling.

:10:44. > :10:47.Joining us is Alpesh Patel, chief executive at Praefinium Partners.

:10:48. > :10:53.There is a mixture of issues grabbing headlines, we have got the

:10:54. > :10:58.effect of quantitative easing in the UK and the effect that is having on

:10:59. > :11:03.pension funds here, or your inflation as Samir mentioned. It is

:11:04. > :11:08.supposed to be good news, the Bank of England pumping more money into

:11:09. > :11:12.the economy, the way it does this, it buys bonds and hopefully the

:11:13. > :11:15.people who sold those bonds will put the money into small businesses or

:11:16. > :11:21.lend it to consumers. But it is not turning out to be a good news story

:11:22. > :11:26.at all because it has driven down bond yields, so if you are a pension

:11:27. > :11:29.fund, if you are a pensioner, the return you are getting, there is a

:11:30. > :11:34.pension deficit for the big corporate, so that is a negative. We

:11:35. > :11:39.thought lower oil prices would be a positive, less cost at the petrol

:11:40. > :11:45.pump, but the oil companies are complaining, said that is not a good

:11:46. > :11:48.story. Who will invest in alternative energy? These supposedly

:11:49. > :11:53.positive stories are telling negative. Do we need to be

:11:54. > :11:56.concerned, especially with the negative interest rate story? For

:11:57. > :12:01.those people thinking, what does this mean for my pension, if it's

:12:02. > :12:06.bad news, is it a short-term thing? I don't think it is short-term. You

:12:07. > :12:10.have got two types of companies to get your pension from, those who are

:12:11. > :12:15.managing the problem and will say, look, we might end the final salary

:12:16. > :12:17.pension scheme in years to come, so it does not affect you directly, it

:12:18. > :12:41.affects future generations. Then other companies, you have seen

:12:42. > :12:44.it with people like, I will not name corporate names because it can lead

:12:45. > :12:46.to worry, but you have seen other companies not managing it so well,

:12:47. > :12:48.those with big pension deficits, their employees, their pensioners

:12:49. > :12:50.should be worried, I'm afraid. Thank you, more from you a little bit

:12:51. > :12:51.later when we look at the papers. Could children succeed

:12:52. > :12:54.where their parents have failed? We meet the woman behind Junior

:12:55. > :12:56.Davos. With 1300 young leaders from nearly

:12:57. > :12:59.200 countries, can they solve some Founder Kate Robertson

:13:00. > :13:13.will be here. This is Business Live from BBC News.

:13:14. > :13:18.You may have heard of smart cities, but what are they?

:13:19. > :13:24.They could be on their way sooner than we think.

:13:25. > :13:26.The national mapping agency Ordnance Survey has begun two-year

:13:27. > :13:29.trial to try and turn Manchester into the UK's first Smart City.

:13:30. > :13:32.But what does this mean exactly and how does a city become smart?

:13:33. > :13:34.Simon Navin is leading the Project on Smart Cities

:13:35. > :13:40.What is a smart city? They are really in response to global trends

:13:41. > :13:45.like population increase, where we are likely to see over 50% of

:13:46. > :13:49.citizens living in cities in the near future, increasing pressure on

:13:50. > :13:52.public services. In the UK we have seen great work in cities like

:13:53. > :13:57.Glasgow, Milton Keynes, Bristol, Greenwich, to work with an internet

:13:58. > :14:01.of things technology to deliver public services in response to those

:14:02. > :14:05.trends. There is a project in Manchester which is about to

:14:06. > :14:10.commence with Ordnance Survey are proud to be part of which will

:14:11. > :14:12.deliver the UK's first demonstrator site for internet of things

:14:13. > :14:19.technology and Smart City technology. Why Manchester? It was

:14:20. > :14:23.part of the bid process, a consortium of public and private

:14:24. > :14:29.companies that came together, it is focused on a digital environment, it

:14:30. > :14:33.will involve the citizens of Manchester to help devise solutions

:14:34. > :14:37.that are needed, and it is very vibrant, it will be interesting for

:14:38. > :14:41.the people of Manchester to become involved. How long will it take and

:14:42. > :14:46.when will it be really smart as opposed to a city in transition and

:14:47. > :14:49.therefore perhaps a bit frustrating? Cities are living and breathing so

:14:50. > :14:54.these things take time, this is a two-year project which started in

:14:55. > :14:56.July and lots of solutions will be tried and tested, researched and

:14:57. > :15:12.developed, and some of those will go live, some of

:15:13. > :15:14.them will take longer to mature. At the end of the project the idea is

:15:15. > :15:16.the solutions can be used elsewhere in the UK and showcase our talent

:15:17. > :15:29.around the world as well. I bet that wasn't helping your anger

:15:30. > :15:34.management. It was frustrating. We are looking at housing data on the

:15:35. > :15:35.website. If you want to know more, dig deep.

:15:36. > :15:39.You're watching Business Live - our top story...

:15:40. > :15:48.The Chinese e-commerce giant Alibaba is dominating on the mainland in

:15:49. > :15:50.China but what about the rest of the world? It is expected to report a

:15:51. > :15:51.massive rise in revenue. A quick look at how

:15:52. > :15:59.markets are faring.... Today in Europe it's a mixed

:16:00. > :16:02.picture, they started a little higher and now they have dipped

:16:03. > :16:07.slightly. The FTSE is leading the losers. Japan is closed today for a

:16:08. > :16:10.public holiday. It's the annual meeting of global

:16:11. > :16:17.business leaders and politicians - and a few celebs, who get together

:16:18. > :16:20.to thrash out answers to some of the People like us have been seen there

:16:21. > :16:28.as well! But it's often criticised

:16:29. > :16:31.for failing to agree any real, So could it be the turn

:16:32. > :16:37.of the younger generation to solve was the Global President and UK

:16:38. > :16:48.Chairman of international marketing and advertising group Havas

:16:49. > :16:51.Worldwide. And went on to create a youth summit

:16:52. > :16:54.that has been called leaders the opportunity to meet

:16:55. > :16:59.with counterparts from every country It's attended by 1300 young people

:17:00. > :17:06.from 196 countries who discuss And this year's gathering

:17:07. > :17:12.is just around the corner, in September,and takes place

:17:13. > :17:25.in Ottawa in Canada. Kate is here. Welcome to business

:17:26. > :17:31.live. Why did you come up with the idea? I was frustrated by a lack of

:17:32. > :17:35.leadership in the world, since we started five or six years ago it was

:17:36. > :17:39.quite obvious in the world that there is not a lot of leadership and

:17:40. > :17:48.being originally South African myself and seeing that people like

:17:49. > :17:54.Mandela and Tutu can genuinely lead as opposed to just occupying a post

:17:55. > :17:58.at the head of government, it is there. This age group is the most

:17:59. > :18:01.educated and connected in history and among them are leaders already

:18:02. > :18:09.anyway with immense power to affect change. If you look at global

:18:10. > :18:13.business, it's been coming out of that age group for the Las Vegas

:18:14. > :18:17.years. They are not there to be ignored and treated as office

:18:18. > :18:22.juniors the way I was, it's a different time, and this age group

:18:23. > :18:28.is a different animal. What do you hope to achieve? What would be a

:18:29. > :18:35.tangible result? When I have been at Davos in the past... You have been!

:18:36. > :18:40.I have, but there is not much achieved. A lot of talking but not

:18:41. > :18:45.much action. The networking is the highest quality in the world and the

:18:46. > :18:51.average global CEO goes there over two days to see every government

:18:52. > :18:55.leader that he needs to see. It's a different thing. The problem with my

:18:56. > :19:02.age group and that age group at Davos is that it is done already.

:19:03. > :19:06.The age group that we deal with, under 13, are effecting change

:19:07. > :19:11.themselves, they are frustrated with a lack of change and they are able

:19:12. > :19:18.to affect change on a great scale. What we are looking for is that this

:19:19. > :19:21.is not a youth summit, this is young leaders and many of them are already

:19:22. > :19:29.leading and if we can help them to scale back in any way, and also

:19:30. > :19:36.inspire that, then a lot will happen. -- scale that. When we were

:19:37. > :19:41.talking earlier you were explaining the issues that they are discussing

:19:42. > :19:46.this year and it was not what I was expecting. Explain what they will be

:19:47. > :19:50.grappling with in September. They have focused on LGBT which is only

:19:51. > :19:54.the second time it has come up and it has never been the headline

:19:55. > :19:59.article for human rights. In education, the second time they have

:20:00. > :20:04.come up, they wanted to discuss education as we know today which is

:20:05. > :20:07.not preparing them for the modern workplace, you know about the coding

:20:08. > :20:19.story. There is a strong view on that. Those are global values. We

:20:20. > :20:22.have delegates from Tuvalu, Kiribati, this is the only place in

:20:23. > :20:26.the world you will see those countries. They deeply care about

:20:27. > :20:31.the migration crisis and Syria and the fact that global leaders are not

:20:32. > :20:33.resolving the problems. All of them are very aware that something ought

:20:34. > :20:38.to have been done and could have been done to prevent the cataclysm

:20:39. > :20:44.in Syria and it was a lack of leadership on the global stage.

:20:45. > :20:48.Let's point the finger at Russia and the USA at the moment, just to

:20:49. > :20:51.shorthand it. There was a lack of leadership and look at what

:20:52. > :21:01.happened. If people want to get involved, I believe I am too old

:21:02. > :21:04.because it is 18-30... It's OK. It's around ?3000 for people to go, who

:21:05. > :21:12.are people who can afford to take part? We sponsor almost 200

:21:13. > :21:16.scholarships to attend out of our own pocket, so we fund all of that.

:21:17. > :21:24.That enables us to get the small countries and also people from, I

:21:25. > :21:29.hate disadvantaged backgrounds, because when you see these young

:21:30. > :21:33.leaders, you think that they may be disadvantaged by background but you

:21:34. > :21:38.are sure a different thing now. This is taking place next month in

:21:39. > :21:40.Canada. It is nice to see you. I am definitely over the hill as far as

:21:41. > :21:47.that's concerned! Let's move on. Hillary Clinton, unveils her plans

:21:48. > :21:49.for the US economy. Mrs Clinton will be

:21:50. > :21:51.speaking in Detroit. This is just days after her rival

:21:52. > :21:54.Donald Trump went to the same to city to lay

:21:55. > :21:57.out HIS economic proposals. So how do the two candidates plans

:21:58. > :21:59.for the US economy compare? These reforms will offer

:22:00. > :22:07.the biggest tax revolution Which unleashed years of continued

:22:08. > :22:37.economic growth and job creation. They tried to make his old,

:22:38. > :22:40.tired ideas sound new, but here's what we all know

:22:41. > :22:44.because we heard it again, his tax plans will give superb big

:22:45. > :23:48.tax breaks to large corporations There has been a 15% fall in ticket

:23:49. > :23:56.sales at the cinema in China. I went three times last week. In one week!

:23:57. > :24:00.What did you see? I went to see an Indian film, Suicide Squad, and I

:24:01. > :24:06.can't even Lambert the third one. They were mind numbingly, you can

:24:07. > :24:13.switch your brain off, they are not arty farty like the ones you would

:24:14. > :24:19.like! Going to the cinema three times in a week! He is managing my

:24:20. > :24:23.fund. It is normally at midnight, you talk about declining numbers but

:24:24. > :24:27.there are late showings at cinemas now and you have got insurance

:24:28. > :24:32.companies giving you free tickets, I have two sets of companies giving me

:24:33. > :24:39.free tickets. It is about switching off and forgetting about everything.

:24:40. > :24:43.Justine says, eating stale popcorn and flat soda and listening to other

:24:44. > :24:50.people's phone, why pay for that privilege? That sounds like home not

:24:51. > :24:55.a cinema! A bill to clean up nuclear reactors, this is a story in the

:24:56. > :25:02.Times will stop it has gone up by ?1.6 billion. What is the story? --

:25:03. > :25:07.in the Times. This is about decommissioning power plans, talking

:25:08. > :25:10.about Hinckley in the UK, and the Chinese and French relationship,

:25:11. > :25:16.this is about getting rid of the old ones. Decommissioning sounds very

:25:17. > :25:22.important, but we are talking about getting rid of things like asbestos

:25:23. > :25:26.and the cost has gone up and up as is often the case with big

:25:27. > :25:30.contracts. It is easy to blame the government but I blame the private

:25:31. > :25:36.sector, how can they get away with saying it will cost X but then they

:25:37. > :25:41.find that it costs more money? A private contract tells you they

:25:42. > :25:47.deliver a cost and they had better do that. I think it has decreased in

:25:48. > :25:53.recent years because what the government has done is got in

:25:54. > :25:58.professional negotiators, the nuclear decommissioning unit in the

:25:59. > :26:01.government, this is a problem, but I blame the private sector and not

:26:02. > :26:09.government officials who have been blindsided. Never one to mince his

:26:10. > :26:11.words. We will be in the same place at the same time tomorrow. Goodbye.