15/08/2016

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:00:00. > :00:07.This is Business Live from BBC News with Aaron Heslehurst

:00:08. > :00:12.Stagnation in the world's third largest economy -

:00:13. > :00:16.but what can be done to get Japan moving again?

:00:17. > :00:35.Live from London, that's our top story.

:00:36. > :00:41.Japan's latest growth numbers are weaker than expected -

:00:42. > :00:46.the Prime Minister's economic plan is put into question once again.

:00:47. > :00:52.Middle-class binge drinkers are responsible for a 'boom'

:00:53. > :01:08.And we will show you the markets, Asia is having a nice time at the

:01:09. > :01:10.moment. Still camped in those one year highs.

:01:11. > :01:13.We'll be talking to a woman who is living proof that an abrupt

:01:14. > :01:16.switch in career can be a recipe for success.

:01:17. > :01:20.The boss of Propercorn will be here to explain how she's making

:01:21. > :01:27.Today we want to know when it's time for a snack -

:01:28. > :01:52.We will talk about the middle-class binge drinking... Sally cannot help

:01:53. > :01:54.herself! We start with Japan,

:01:55. > :01:57.where it's been another very tough quarter for the country's economy -

:01:58. > :02:01.it saw a smidgen of growth in the three months to the end

:02:02. > :02:06.of June, leading to some economists questioning the Prime Minister's

:02:07. > :02:09.aggressive economic policies Let's look at the steps

:02:10. > :02:15.the government has taken The growth figures were weaker

:02:16. > :02:26.than expected at 0.2% - most economists predicted growth

:02:27. > :02:33.would be something closer to 0.7%. The central bank has flooded

:02:34. > :02:37.the financial system Government spending has been boosted

:02:38. > :02:48.to try to stimulate growth. Earlier this month Shinzo Abe

:02:49. > :02:56.unveiled a stimulus package the government valued

:02:57. > :02:59.at $274 billion. And deflation remains

:03:00. > :03:10.a huge problem. Exports are also under pressure due

:03:11. > :03:19.to the strong yen. That is seen as a safe haven around

:03:20. > :03:25.the world so when investors worry they put money into the yen and that

:03:26. > :03:28.pushes the value up which makes Japanese manufactured stuff more

:03:29. > :03:30.expensive to buy around the world, so we buy less of it and that hits

:03:31. > :03:33.the bottom line in Japan. Jonathan Allum, strategist at SMBC

:03:34. > :03:46.Nikko Capital Markets, is with me. I feel like we have been talking

:03:47. > :03:49.about this for years. Things have not improve significantly despite

:03:50. > :03:53.the efforts of the Japanese government? That there's a fair

:03:54. > :03:57.point although we must be wary, these are preliminary GDP figures

:03:58. > :04:03.which are revised extensively, the last quarter has been revised up

:04:04. > :04:05.marginally, particularly the corporate capital expenditure number

:04:06. > :04:10.which is surprisingly negative in this and that will be revised up

:04:11. > :04:15.with the subsequent survey so we should not be definitive. The

:04:16. > :04:18.numbers are certainly below expectation and they have shown

:04:19. > :04:23.little to no growth and that is a fair point. We have been in this

:04:24. > :04:26.place for a long time, Shinzo Abe has been in power for a significant

:04:27. > :04:31.amount of time and many have argued in the past prior to his Premiership

:04:32. > :04:35.that part of the problem was the political change all the time, the

:04:36. > :04:40.leader could not push through difficult decisions and change but

:04:41. > :04:46.Abenomics has been in place for a while, in power for some time, when

:04:47. > :04:49.will we see real change? He has been in power for some time and if you

:04:50. > :04:54.look at the famous three arrows which he talked about, the first was

:04:55. > :04:58.monitoring all of the that has happened, Japanese inflation numbers

:04:59. > :05:04.are not spectacular but if you look at the GDP, it is positive. The

:05:05. > :05:07.trend has been positive. Slower than desired but Japanese inflation has

:05:08. > :05:11.risen at a time when in other countries that has fallen. The real

:05:12. > :05:16.problem is that fiscal policy and rather than being stimulate his it

:05:17. > :05:20.has been contractionary because of the increase in the consumption tax

:05:21. > :05:27.and what we are not seeing in these figures is a change in policy with

:05:28. > :05:32.the consumption tax increase scheduled for 2017 kicked into the

:05:33. > :05:37.long grass and becomes expansionary. Not as much as the numbers you say,

:05:38. > :05:41.it is a bit like Gordon Brown, they have a tendency to re-announce

:05:42. > :05:45.more than once for a higher headline more than once for a higher headline

:05:46. > :05:48.number but we have seen a change in fiscal policy but that is too late

:05:49. > :05:53.for these numbers and that is a question for next year. They are

:05:54. > :05:59.telling me briefly but this is not a brief question, a lot of experts say

:06:00. > :06:02.the problem with Japan as they will not change, you can throw the

:06:03. > :06:07.kitchen sink at the Japanese economy but until you do structural economic

:06:08. > :06:11.reform nothing will change. Japan has an ageing population and is not

:06:12. > :06:14.really like immigration and they haven't got workers, workers who

:06:15. > :06:21.must put into the economy to pay for the old people? The success of

:06:22. > :06:24.Abenomics is the increase in employment, particularly female

:06:25. > :06:27.employment and until the last few months, we have seen an increase in

:06:28. > :06:32.male unemployment also but overall Japan has added more than 1 million

:06:33. > :06:37.jobs over the last three years so that is, it is not dramatic headline

:06:38. > :06:42.stuff but it has been a reverse of the previous trend. Particularly

:06:43. > :06:46.female employment. But you're right, the proposition is contracting, the

:06:47. > :06:52.fertility rate is rising and that is not necessarily unknown thing but

:06:53. > :06:58.that is. The standards of age is very respectable but that is longer

:06:59. > :07:05.term. We will talk about this again! It is good to see you. Another 25

:07:06. > :07:08.years! Don't live that long! We have more positive news!

:07:09. > :07:12.The International Monetary Fund has urged China to reduce its reliance

:07:13. > :07:15.China's non-financial state-owned enterprises accounted for half

:07:16. > :07:19.of bank credit but only a fifth of industrial

:07:20. > :07:25.The report reflected views provided by Chinese policymakers who agreed

:07:26. > :07:29.with the IMF that corporate debt had increased "excessively".

:07:30. > :07:34.London properties are taking longer to sell this month,

:07:35. > :07:40.And of course it is uncertainty over what Brexit will bring

:07:41. > :07:47.On average sellers cut prices by 3.6% from July to $1 million.

:07:48. > :07:50.It leaves London up 2.1% on the year, the slowest

:07:51. > :08:07.It matters if you want to sell your house. Let us look at the Business

:08:08. > :08:16.Live page. The middle of August and you can tell that there is not a lot

:08:17. > :08:21.of corporate news. It is very quiet and people are on holiday but the

:08:22. > :08:28.boss of delivery was on BBC Radio 4 this morning, the radio programme.

:08:29. > :08:33.-- Deliveroo- basically being grilled about what delivery workers

:08:34. > :08:36.are being paid. You see them on their bicycles and many other cities

:08:37. > :08:40.across the UK and the boss of Deliveroo says they are paid

:08:41. > :08:47.perfectly well and he is talking about proposals to changes in what

:08:48. > :08:54.they are paid. 3.75 for every delivery, that is not a lot. In

:08:55. > :09:07.Singapore there are separating the gold medal in the Olympics! Did you

:09:08. > :09:11.see that? Amazing! But consumer confidence has dropped to its lowest

:09:12. > :09:16.level for seven years. You cannot say that is Brexit over there!

:09:17. > :09:30.Despite the jubilation, there is pessimism, the consumer index said

:09:31. > :09:35.Singapore is most pessimistic about the economy in seven years. They

:09:36. > :09:41.have become more gloomy about their quality of life, their income and

:09:42. > :09:46.also job security and the index fell to 33.6 in the first half of the

:09:47. > :09:51.year compared to 44.3 for the previous six months and the last

:09:52. > :09:56.time the index was that low was June 2009 and that was at the height of

:09:57. > :10:00.the global recession. When the economy in Singapore contracted for

:10:01. > :10:06.four straight quarters. This dip in confidence is reflected in economic

:10:07. > :10:11.data. Analysts are forecasting the Singapore economy to grow by 1.8%.

:10:12. > :10:16.This year. That is the slowest pace since 2009. Hopefully it will get

:10:17. > :10:25.some or all winners and have something more to celebrate over

:10:26. > :10:30.here. Good on you! As one Australian says to the other. We come about

:10:31. > :10:32.ninth place on the chart! Let us look at the markets...

:10:33. > :10:36.Asian shares set up camp at one-year peaks today as a rally in Chinese

:10:37. > :10:39.stocks helped offset news that Japan's economic growth had ground

:10:40. > :10:50.Oil prices extended their latest rally.

:10:51. > :10:54.In Europe, markets also digesting not great news

:10:55. > :11:02.US retail sales were unexpectedly flat in July -

:11:03. > :11:07.Americans cut back on purchases of clothing and other goods.

:11:08. > :11:09.Other data showed producer prices recorded their biggest drop

:11:10. > :11:25.But talking of the US - let's find out what will be making

:11:26. > :11:27.the headlines on that side of the Atlantic.

:11:28. > :11:36.Final bids for the digital media company gawker are due ahead of the

:11:37. > :11:41.auction on Tuesday, a banker managing the bankruptcy process and

:11:42. > :11:46.sales said as 20 parties could make offers. Gawker recently lost the

:11:47. > :11:52.invasion of privacy lawsuit brought by the former wrestler Hulk Hogan

:11:53. > :11:56.and was ordered to pay damages of $130 million. Gawker is appealing

:11:57. > :11:59.the decision and filing from bankruptcy to continue operating and

:12:00. > :12:05.paying its staff while it seeks to overturn the lawsuit. In election

:12:06. > :12:07.years, the Vice President Joe Biden will campaign with Democratic

:12:08. > :12:14.Presidential nominee Hillary Clinton in Pennsylvania on Monday. They will

:12:15. > :12:18.focus on economic issues, Republican Presidential nominee Donald Trump

:12:19. > :12:22.begins fighting a lawsuit in Florida over denying refunds on Jews to

:12:23. > :12:27.members at the John Nash on a golf course. -- dues.

:12:28. > :12:33.We have Justin Urquhart-Stewart from Seven Investment Management.

:12:34. > :12:47.Happy new week! And you are not on holiday? I was working last week.

:12:48. > :12:54.We're not even going there! Working with a trowel?! US inflation this

:12:55. > :12:58.big? This is crucial, everybody depends on the central bank at the

:12:59. > :13:02.moment, it is pumping money into the system, that is what we saw from the

:13:03. > :13:08.Bank of England and one of the key targets is about inflation, keep it

:13:09. > :13:14.low. Look at these figures, the core inflation in the UK is about 1.4%,

:13:15. > :13:19.commodity prices are rising, oil, there is inflation in the system to

:13:20. > :13:24.the question over the next few months is, will central bankers

:13:25. > :13:28.focus on inflation in two years? You might want to put up the rates will

:13:29. > :13:33.you worry about growth in the economy, still weak, this is a big

:13:34. > :13:37.decision and my prediction is it will focus on growth and not

:13:38. > :13:42.inflation. Those figures will be crucial on Wednesday, Thursday is

:13:43. > :13:47.consumer confidence figures and by the end of this week we should have

:13:48. > :13:51.a better sense of how the economy is faring post Brexit? And the way to

:13:52. > :13:55.look at this is by looking at the bigger picture, the global economy

:13:56. > :13:58.is growing at just over 3% every year and the headline say it is

:13:59. > :14:04.getting slower, that is the long-term average, that is OK, US

:14:05. > :14:08.figures are not that bad, Friday was not strong but OK, Eurozone has been

:14:09. > :14:13.slower but still OK and as we have seen in the Far East and emerging

:14:14. > :14:16.economies, they are also picking up. The UK has its own issues with

:14:17. > :14:18.Brexit but we don't want to talk ourselves into this, the rest of the

:14:19. > :14:27.world is doing well. Join the dots. I'm glad that you have said that, we

:14:28. > :14:33.don't want to talk ourselves into recession. Digging fossils...? We

:14:34. > :14:38.don't anybody to get the wrong impression. The Romans had a single

:14:39. > :14:43.currency. They were talking about gardening in my ear, Norman

:14:44. > :14:46.gardening... The man is digging up bones! LAUGHTER

:14:47. > :14:52.Coins! Still to come, Monday, so there is a fair chance that some of

:14:53. > :14:56.us... Dreaming of chucking in the nine to five job, and starting your

:14:57. > :14:58.own adventure. Stay tuned, you can meet someone who did just that, and

:14:59. > :15:14.made a big success. Industries and businesses

:15:15. > :15:17.across the UK are considering life after Brexit and, from today,

:15:18. > :15:19.farmers will have their say. The National Farmers Union

:15:20. > :15:21.is launching a consultation on the future of

:15:22. > :15:23.post-Brexit farming. Joining us to discuss

:15:24. > :15:41.the topic is the president Welcome to the programme, great to

:15:42. > :15:46.have you with us. Good morning. In terms of farming, most farmers,

:15:47. > :15:51.would they be remain of with baby in favour of Brexit? The debate around

:15:52. > :15:55.the referendum, now we look forward, so we will be consulting with 48,000

:15:56. > :16:07.farm members over the next six weeks. Trade deals, access to

:16:08. > :16:11.labour, they will all be so important, post-20 20. We will put

:16:12. > :16:15.together a policy document after hearing the views, and then we will

:16:16. > :16:17.ask for a framework which will deliver a domestic agricultural

:16:18. > :16:26.policy which is fit for purpose and will lead to a proper competitive

:16:27. > :16:30.farming industry post-20 20. -- post 2020. When I spoke with you earlier,

:16:31. > :16:33.you said that your members were mixed in terms of how they would

:16:34. > :16:40.vote, regardless of that, all farmers in UK received a nice

:16:41. > :16:46.subsidy from the EU at the moment. Assuming that part of your

:16:47. > :16:53.consultation will be that that must be replaced. What we have said at

:16:54. > :16:56.the NFU, when the policies designed post 2020, we must not be

:16:57. > :17:00.disadvantaged to competitors in the rest of Europe, we still have to

:17:01. > :17:06.compete with Irish, southern Irish, French, Danish farmers. We must not

:17:07. > :17:10.be disadvantaged if we are going to build that competitive, efficient,

:17:11. > :17:14.profitable industry going forward. We know that our self-sufficiency in

:17:15. > :17:19.food has fallen dramatically over the last 20 years, we must be

:17:20. > :17:21.ambitious, we must reverse the trend, because British consumers

:17:22. > :17:27.want more British food on their plates. Unfortunately, we have run

:17:28. > :17:29.out of time, but president of the national farmers union, we

:17:30. > :17:31.appreciate your comments, and we will keep an eye on the paper when

:17:32. > :17:40.it comes out. Back in the headlines, Peppa Pig, there was the failed ITV

:17:41. > :17:46.takeover, some say that it is going to be the target of private equity,

:17:47. > :17:52.a lot of people pouring into it, it is called Entertainment One. Top

:17:53. > :17:58.story: Japan, the world is third-largest economy, grew this

:17:59. > :18:10.much. 0.2 of a percent. We called it a smidgen!

:18:11. > :18:16.If you are in Japan, watching, can you tell us how you say kitchen

:18:17. > :18:21.sink. A quick look at the financial markets on a new trading week, they

:18:22. > :18:31.are all up slightly, nothing to shout about, London down just a

:18:32. > :18:37.point, 0.1 of a percent. -- zero .01 of a percent. Most traders in the

:18:38. > :18:42.City of London and other financial markets around the world, they are

:18:43. > :18:47.all on the French Riviera, on their boats, the big flashy ones. Talking

:18:48. > :18:51.of big flashy boats, maybe one day! This is the stuff of a Monday

:18:52. > :18:55.daydream, chucking in the job, marching to the boss 's office, tell

:18:56. > :18:58.him or her that you have had enough of slaving for someone else and that

:18:59. > :19:11.he will be starting your own business. For most of us, it remains

:19:12. > :19:17.a fantasy. But our next guest shows how an abrupt career change really

:19:18. > :19:19.can pay off, in spades. Cassandra Stavrou quit her job in 2009 and

:19:20. > :19:24.launched Propercorn Popcorn two years later at the height of the

:19:25. > :19:27.economic crisis. Good timing(!) But she was entering a market growing in

:19:28. > :19:36.popularity, healthy snacks. In just five years, Cassandra and her

:19:37. > :19:38.business partner have managed to establish a company which sells

:19:39. > :19:40.three million packs of popcorn a month, generating almost 13 million

:19:41. > :19:42.dollars in sales a year. Available in ten countries across Europe, the

:19:43. > :19:49.business has emerged as the fastest non-tech start-up in the UK. That is

:19:50. > :19:55.right. You have hurt, in the house with us, Cassandra, the first

:19:56. > :20:01.question, why popcorn? You have said it, it is a healthy snack,

:20:02. > :20:06.gluten-free, played into all of the big... This is very noisy! If you

:20:07. > :20:10.don't mind me saying. Everybody understands what popcorn is, we all

:20:11. > :20:16.have that nostalgia, this is about doing it in a slightly different

:20:17. > :20:21.way, more healthy, it is an amazing journey. Popcorn is very popular in

:20:22. > :20:26.our fire sale, we had it last night. I have three small boys. They want

:20:27. > :20:32.to snack a lot. -- in our household. When I go in the supermarket, I

:20:33. > :20:37.don't necessarily pick yours, I will look at price... I shan't take it

:20:38. > :20:41.personally! Price is important, there are so many options. Crowded

:20:42. > :20:45.market. It is, what is exciting about the story is, from a standing

:20:46. > :20:51.start we have really clicked on ahead of the competition,

:20:52. > :20:55.fastest-growing brand in the UK, that is a testament to the

:20:56. > :20:59.packaging, the fact that we are healthier, and... I did not know

:21:00. > :21:04.that you were healthier, that is important to me, I am looking for

:21:05. > :21:11.healthier options. There is the calorie count on the front, 130

:21:12. > :21:16.calories, and also, increasingly customers becoming aware of popcorn

:21:17. > :21:25.away from cinema, away from film and the buttery sugary versions. This is

:21:26. > :21:29.completely natural. Cassandra, we have this fun about saying it is a

:21:30. > :21:33.Monday and we want to quit our jobs, did you have this idea before you

:21:34. > :21:37.quit your job, did you hate your job and wants to quit? This is not easy

:21:38. > :21:43.to say. Whatever you are making, not easy to do. It took two years to get

:21:44. > :21:47.it off the ground, and I think, perhaps naively I quit my job as

:21:48. > :21:52.soon as I had the idea, it is was passionate about it! Trying to get a

:21:53. > :21:56.business of the ground, it takes a lot of hard work, being quite

:21:57. > :22:01.resourceful, the initial samples I made in a cement mixer! Nobody in

:22:02. > :22:06.the UK could season popcorn in the way that I wanted it to be seasoned.

:22:07. > :22:11.Don't let that put you off! LAUGHTER Not anymore they are not! We

:22:12. > :22:15.fashioned it with steel, on top gear, I saw the way that they spray

:22:16. > :22:20.paint cars, they use a special Mr, and so we ordered a kit off-line. I

:22:21. > :22:27.was making it very crudely, now we have a shiny all singing all dancing

:22:28. > :22:32.line. -- Mr. And all health and all safety as well, I am sure! You have

:22:33. > :22:37.got to be prepared to take a punt, and really go for it. How do you

:22:38. > :22:44.fund it, you have got to have a lot of resources yourself, how did you

:22:45. > :22:50.get people involved? I was lucky that my family lived in London, I

:22:51. > :22:54.moved back home and I did jobs, walking dogs, painting, whatever I

:22:55. > :22:59.could get my hands on, to fund the initial first steps. And then we got

:23:00. > :23:03.a little bit of seed investment from my business partner's family, to

:23:04. > :23:08.launch, but it really was just a case of going for it. Now you are in

:23:09. > :23:12.most of the main supermarkets in the UK, we have talked about your

:23:13. > :23:18.massive sales numbers, how did you manage to get it into the main

:23:19. > :23:22.marketplace? No set recipe, it is a case of calling up and turning up to

:23:23. > :23:27.everywhere you possibly can, leaving no stone unturned, at Tesco we are

:23:28. > :23:32.now the number six bestselling snack in their whole category. If you had

:23:33. > :23:39.told me that when we first launched, it would have surprised me. It is a

:23:40. > :23:43.testament to the traction of the product, and how people find it.

:23:44. > :23:49.They love it, thank you very much joining us. They are going to watch

:23:50. > :23:53.a tape of how to contact us, you told me you are great at catching

:23:54. > :23:59.popcorn, come on, near we go... ! LAUGHTER

:24:00. > :24:04.Stay ahead with all the days breaking news, we keep you

:24:05. > :24:10.up-to-date with all the latest details with insight and analysis

:24:11. > :24:13.for the BBC's team of editors around the world, and we want to hear from

:24:14. > :24:20.you as well. Get involved on the web page. On Twitter, and also on

:24:21. > :24:33.Facebook. Just in his back with us, we have

:24:34. > :24:38.talked popcorn, now we are talking about a story in the Telegraph,

:24:39. > :24:41.middle-class binge drinking creates boom in sales of giant bottles of

:24:42. > :24:46.bubbly, this is not my own consumption! Talk us through what

:24:47. > :24:51.this story is about. It is fascinating, not just buying more

:24:52. > :24:59.bubbly, but buying a big butch bottle... Showing off. The figures

:25:00. > :25:05.here go back to 2014, just under 300,000 Magnas, now it is over

:25:06. > :25:15.700,000! We have suddenly... Showing off my thing. -- magnas. but you can

:25:16. > :25:24.have a nebuchadnezzar, 15 litres at one sitting, if you so wish! --

:25:25. > :25:30.magnums. not so much champagne but per second, they have opened it up

:25:31. > :25:36.to large serve bottles. in a word, your favourite snack? caviar, dare i

:25:37. > :25:45.say that? laughter just in! caviar! Some people say

:25:46. > :25:49.please, fruit, chips... Joe says his favourite is mini popcorn! There you

:25:50. > :25:53.go. Just in, thank you. That was businesslike, have a very good day,

:25:54. > :26:12.we will see you tomorrow, thank you very much.

:26:13. > :26:14.Thus far the summer has misfired, a bit stop and start, now