15/08/2016 BBC Business Live


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This is Business Live from BBC News with Aaron Heslehurst


Stagnation in the world's third largest economy -


but what can be done to get Japan moving again?


Live from London, that's our top story.


Japan's latest growth numbers are weaker than expected -


the Prime Minister's economic plan is put into question once again.


Middle-class binge drinkers are responsible for a 'boom'


And we will show you the markets, Asia is having a nice time at the


moment. Still camped in those one year highs.


We'll be talking to a woman who is living proof that an abrupt


switch in career can be a recipe for success.


The boss of Propercorn will be here to explain how she's making


Today we want to know when it's time for a snack -


We will talk about the middle-class binge drinking... Sally cannot help


herself! We start with Japan,


where it's been another very tough quarter for the country's economy -


it saw a smidgen of growth in the three months to the end


of June, leading to some economists questioning the Prime Minister's


aggressive economic policies Let's look at the steps


the government has taken The growth figures were weaker


than expected at 0.2% - most economists predicted growth


would be something closer to 0.7%. The central bank has flooded


the financial system Government spending has been boosted


to try to stimulate growth. Earlier this month Shinzo Abe


unveiled a stimulus package the government valued


at $274 billion. And deflation remains


a huge problem. Exports are also under pressure due


to the strong yen. That is seen as a safe haven around


the world so when investors worry they put money into the yen and that


pushes the value up which makes Japanese manufactured stuff more


expensive to buy around the world, so we buy less of it and that hits


the bottom line in Japan. Jonathan Allum, strategist at SMBC


Nikko Capital Markets, is with me. I feel like we have been talking


about this for years. Things have not improve significantly despite


the efforts of the Japanese government? That there's a fair


point although we must be wary, these are preliminary GDP figures


which are revised extensively, the last quarter has been revised up


marginally, particularly the corporate capital expenditure number


which is surprisingly negative in this and that will be revised up


with the subsequent survey so we should not be definitive. The


numbers are certainly below expectation and they have shown


little to no growth and that is a fair point. We have been in this


place for a long time, Shinzo Abe has been in power for a significant


amount of time and many have argued in the past prior to his Premiership


that part of the problem was the political change all the time, the


leader could not push through difficult decisions and change but


Abenomics has been in place for a while, in power for some time, when


will we see real change? He has been in power for some time and if you


look at the famous three arrows which he talked about, the first was


monitoring all of the that has happened, Japanese inflation numbers


are not spectacular but if you look at the GDP, it is positive. The


trend has been positive. Slower than desired but Japanese inflation has


risen at a time when in other countries that has fallen. The real


problem is that fiscal policy and rather than being stimulate his it


has been contractionary because of the increase in the consumption tax


and what we are not seeing in these figures is a change in policy with


the consumption tax increase scheduled for 2017 kicked into the


long grass and becomes expansionary. Not as much as the numbers you say,


it is a bit like Gordon Brown, they have a tendency to re-announce


more than once for a higher headline more than once for a higher headline


number but we have seen a change in fiscal policy but that is too late


for these numbers and that is a question for next year. They are


telling me briefly but this is not a brief question, a lot of experts say


the problem with Japan as they will not change, you can throw the


kitchen sink at the Japanese economy but until you do structural economic


reform nothing will change. Japan has an ageing population and is not


really like immigration and they haven't got workers, workers who


must put into the economy to pay for the old people? The success of


Abenomics is the increase in employment, particularly female


employment and until the last few months, we have seen an increase in


male unemployment also but overall Japan has added more than 1 million


jobs over the last three years so that is, it is not dramatic headline


stuff but it has been a reverse of the previous trend. Particularly


female employment. But you're right, the proposition is contracting, the


fertility rate is rising and that is not necessarily unknown thing but


that is. The standards of age is very respectable but that is longer


term. We will talk about this again! It is good to see you. Another 25


years! Don't live that long! We have more positive news!


The International Monetary Fund has urged China to reduce its reliance


China's non-financial state-owned enterprises accounted for half


of bank credit but only a fifth of industrial


The report reflected views provided by Chinese policymakers who agreed


with the IMF that corporate debt had increased "excessively".


London properties are taking longer to sell this month,


And of course it is uncertainty over what Brexit will bring


On average sellers cut prices by 3.6% from July to $1 million.


It leaves London up 2.1% on the year, the slowest


It matters if you want to sell your house. Let us look at the Business


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


of corporate news. It is very quiet and people are on holiday but the


boss of delivery was on BBC Radio 4 this morning, the radio programme.


-- Deliveroo- basically being grilled about what delivery workers


are being paid. You see them on their bicycles and many other cities


across the UK and the boss of Deliveroo says they are paid


perfectly well and he is talking about proposals to changes in what


they are paid. 3.75 for every delivery, that is not a lot. In


Singapore there are separating the gold medal in the Olympics! Did you


see that? Amazing! But consumer confidence has dropped to its lowest


level for seven years. You cannot say that is Brexit over there!


Despite the jubilation, there is pessimism, the consumer index said


Singapore is most pessimistic about the economy in seven years. They


have become more gloomy about their quality of life, their income and


also job security and the index fell to 33.6 in the first half of the


year compared to 44.3 for the previous six months and the last


time the index was that low was June 2009 and that was at the height of


the global recession. When the economy in Singapore contracted for


four straight quarters. This dip in confidence is reflected in economic


data. Analysts are forecasting the Singapore economy to grow by 1.8%.


This year. That is the slowest pace since 2009. Hopefully it will get


some or all winners and have something more to celebrate over


here. Good on you! As one Australian says to the other. We come about


ninth place on the chart! Let us look at the markets...


Asian shares set up camp at one-year peaks today as a rally in Chinese


stocks helped offset news that Japan's economic growth had ground


Oil prices extended their latest rally.


In Europe, markets also digesting not great news


US retail sales were unexpectedly flat in July -


Americans cut back on purchases of clothing and other goods.


Other data showed producer prices recorded their biggest drop


But talking of the US - let's find out what will be making


the headlines on that side of the Atlantic.


Final bids for the digital media company gawker are due ahead of the


auction on Tuesday, a banker managing the bankruptcy process and


sales said as 20 parties could make offers. Gawker recently lost the


invasion of privacy lawsuit brought by the former wrestler Hulk Hogan


and was ordered to pay damages of $130 million. Gawker is appealing


the decision and filing from bankruptcy to continue operating and


paying its staff while it seeks to overturn the lawsuit. In election


years, the Vice President Joe Biden will campaign with Democratic


Presidential nominee Hillary Clinton in Pennsylvania on Monday. They will


focus on economic issues, Republican Presidential nominee Donald Trump


begins fighting a lawsuit in Florida over denying refunds on Jews to


members at the John Nash on a golf course. -- dues.


We have Justin Urquhart-Stewart from Seven Investment Management.


Happy new week! And you are not on holiday? I was working last week.


We're not even going there! Working with a trowel?! US inflation this


big? This is crucial, everybody depends on the central bank at the


moment, it is pumping money into the system, that is what we saw from the


Bank of England and one of the key targets is about inflation, keep it


low. Look at these figures, the core inflation in the UK is about 1.4%,


commodity prices are rising, oil, there is inflation in the system to


the question over the next few months is, will central bankers


focus on inflation in two years? You might want to put up the rates will


you worry about growth in the economy, still weak, this is a big


decision and my prediction is it will focus on growth and not


inflation. Those figures will be crucial on Wednesday, Thursday is


consumer confidence figures and by the end of this week we should have


a better sense of how the economy is faring post Brexit? And the way to


look at this is by looking at the bigger picture, the global economy


is growing at just over 3% every year and the headline say it is


getting slower, that is the long-term average, that is OK, US


figures are not that bad, Friday was not strong but OK, Eurozone has been


slower but still OK and as we have seen in the Far East and emerging


economies, they are also picking up. The UK has its own issues with


Brexit but we don't want to talk ourselves into this, the rest of the


world is doing well. Join the dots. I'm glad that you have said that, we


don't want to talk ourselves into recession. Digging fossils...? We


don't anybody to get the wrong impression. The Romans had a single


currency. They were talking about gardening in my ear, Norman


gardening... The man is digging up bones! LAUGHTER


Coins! Still to come, Monday, so there is a fair chance that some of


us... Dreaming of chucking in the nine to five job, and starting your


own adventure. Stay tuned, you can meet someone who did just that, and


made a big success. Industries and businesses


across the UK are considering life after Brexit and, from today,


farmers will have their say. The National Farmers Union


is launching a consultation on the future of


post-Brexit farming. Joining us to discuss


the topic is the president Welcome to the programme, great to


have you with us. Good morning. In terms of farming, most farmers,


would they be remain of with baby in favour of Brexit? The debate around


the referendum, now we look forward, so we will be consulting with 48,000


farm members over the next six weeks. Trade deals, access to


labour, they will all be so important, post-20 20. We will put


together a policy document after hearing the views, and then we will


ask for a framework which will deliver a domestic agricultural


policy which is fit for purpose and will lead to a proper competitive


farming industry post-20 20. -- post 2020. When I spoke with you earlier,


you said that your members were mixed in terms of how they would


vote, regardless of that, all farmers in UK received a nice


subsidy from the EU at the moment. Assuming that part of your


consultation will be that that must be replaced. What we have said at


the NFU, when the policies designed post 2020, we must not be


disadvantaged to competitors in the rest of Europe, we still have to


compete with Irish, southern Irish, French, Danish farmers. We must not


be disadvantaged if we are going to build that competitive, efficient,


profitable industry going forward. We know that our self-sufficiency in


food has fallen dramatically over the last 20 years, we must be


ambitious, we must reverse the trend, because British consumers


want more British food on their plates. Unfortunately, we have run


out of time, but president of the national farmers union, we


appreciate your comments, and we will keep an eye on the paper when


it comes out. Back in the headlines, Peppa Pig, there was the failed ITV


takeover, some say that it is going to be the target of private equity,


a lot of people pouring into it, it is called Entertainment One. Top


story: Japan, the world is third-largest economy, grew this


much. 0.2 of a percent. We called it a smidgen!


If you are in Japan, watching, can you tell us how you say kitchen


sink. A quick look at the financial markets on a new trading week, they


are all up slightly, nothing to shout about, London down just a


point, 0.1 of a percent. -- zero .01 of a percent. Most traders in the


City of London and other financial markets around the world, they are


all on the French Riviera, on their boats, the big flashy ones. Talking


of big flashy boats, maybe one day! This is the stuff of a Monday


daydream, chucking in the job, marching to the boss 's office, tell


him or her that you have had enough of slaving for someone else and that


he will be starting your own business. For most of us, it remains


a fantasy. But our next guest shows how an abrupt career change really


can pay off, in spades. Cassandra Stavrou quit her job in 2009 and


launched Propercorn Popcorn two years later at the height of the


economic crisis. Good timing(!) But she was entering a market growing in


popularity, healthy snacks. In just five years, Cassandra and her


business partner have managed to establish a company which sells


three million packs of popcorn a month, generating almost 13 million


dollars in sales a year. Available in ten countries across Europe, the


business has emerged as the fastest non-tech start-up in the UK. That is


right. You have hurt, in the house with us, Cassandra, the first


question, why popcorn? You have said it, it is a healthy snack,


gluten-free, played into all of the big... This is very noisy! If you


don't mind me saying. Everybody understands what popcorn is, we all


have that nostalgia, this is about doing it in a slightly different


way, more healthy, it is an amazing journey. Popcorn is very popular in


our fire sale, we had it last night. I have three small boys. They want


to snack a lot. -- in our household. When I go in the supermarket, I


don't necessarily pick yours, I will look at price... I shan't take it


personally! Price is important, there are so many options. Crowded


market. It is, what is exciting about the story is, from a standing


start we have really clicked on ahead of the competition,


fastest-growing brand in the UK, that is a testament to the


packaging, the fact that we are healthier, and... I did not know


that you were healthier, that is important to me, I am looking for


healthier options. There is the calorie count on the front, 130


calories, and also, increasingly customers becoming aware of popcorn


away from cinema, away from film and the buttery sugary versions. This is


completely natural. Cassandra, we have this fun about saying it is a


Monday and we want to quit our jobs, did you have this idea before you


quit your job, did you hate your job and wants to quit? This is not easy


to say. Whatever you are making, not easy to do. It took two years to get


it off the ground, and I think, perhaps naively I quit my job as


soon as I had the idea, it is was passionate about it! Trying to get a


business of the ground, it takes a lot of hard work, being quite


resourceful, the initial samples I made in a cement mixer! Nobody in


the UK could season popcorn in the way that I wanted it to be seasoned.


Don't let that put you off! LAUGHTER Not anymore they are not! We


fashioned it with steel, on top gear, I saw the way that they spray


paint cars, they use a special Mr, and so we ordered a kit off-line. I


was making it very crudely, now we have a shiny all singing all dancing


line. -- Mr. And all health and all safety as well, I am sure! You have


got to be prepared to take a punt, and really go for it. How do you


fund it, you have got to have a lot of resources yourself, how did you


get people involved? I was lucky that my family lived in London, I


moved back home and I did jobs, walking dogs, painting, whatever I


could get my hands on, to fund the initial first steps. And then we got


a little bit of seed investment from my business partner's family, to


launch, but it really was just a case of going for it. Now you are in


most of the main supermarkets in the UK, we have talked about your


massive sales numbers, how did you manage to get it into the main


marketplace? No set recipe, it is a case of calling up and turning up to


everywhere you possibly can, leaving no stone unturned, at Tesco we are


now the number six bestselling snack in their whole category. If you had


told me that when we first launched, it would have surprised me. It is a


testament to the traction of the product, and how people find it.


They love it, thank you very much joining us. They are going to watch


a tape of how to contact us, you told me you are great at catching


popcorn, come on, near we go... ! LAUGHTER


Stay ahead with all the days breaking news, we keep you


up-to-date with all the latest details with insight and analysis


for the BBC's team of editors around the world, and we want to hear from


you as well. Get involved on the web page. On Twitter, and also on


Facebook. Just in his back with us, we have


talked popcorn, now we are talking about a story in the Telegraph,


middle-class binge drinking creates boom in sales of giant bottles of


bubbly, this is not my own consumption! Talk us through what


this story is about. It is fascinating, not just buying more


bubbly, but buying a big butch bottle... Showing off. The figures


here go back to 2014, just under 300,000 Magnas, now it is over


700,000! We have suddenly... Showing off my thing. -- magnas. but you can


have a nebuchadnezzar, 15 litres at one sitting, if you so wish! --


magnums. not so much champagne but per second, they have opened it up


to large serve bottles. in a word, your favourite snack? caviar, dare i


say that? laughter just in! caviar! Some people say


please, fruit, chips... Joe says his favourite is mini popcorn! There you


go. Just in, thank you. That was businesslike, have a very good day,


we will see you tomorrow, thank you very much.


Thus far the summer has misfired, a bit stop and start, now


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