24/08/2016 BBC Business Live


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The magnitude 6.2 earthquake struck near


The mayor of a nearby Italian town told local radio that


Also in the programme - Counting the cost


A new report has called for an international ban


on microbeads that are used in thousands of cosmetics


And markets are treading water worldwide. At the moment in Europe


the main markets are heading lower. A rather unusual addition where we


begin by keeping your cross developments in Italy. There has


been an earthquake in central Italy. The quake was shallow -


magnitude six point two - and was felt as far away


as Rome and Venice. The mayor of one nearby town,


Amatrice, told Italian TV that some buildings had collapsed and people


were trapped under the rubble. A number of deaths


have been reported. Catriona Renton has been


following the story for us. Reports of lives lost


and buildings reduced to rubble. At 3:30am the earthquake struck,


reaching a magnitude of 6.2. It was felt across large


swathes of the country, The worst hit areas appear to be


small hilltop villages in the area. At the moment I am in a little


village called Camartina. But I know that for sure,


we had two people die in the location called Arquata del


Tronto, that is the municipality. So we have so many houses that


may be destroyed. The Mayor of the small town


of Amatrice told Italian television that buildings had collapsed,


saying half the town was gone. And in close by Accumoli,


it's reported that a family of four This is an area vulnerable


to earthquakes. In 2009, the same region was struck,


more than 300 people died. As the day goes on, and more help


arrives, the true extent Earlier, we spoke with


Sabrina Sbermola, a resident in the district of Arquata del


Tronto that's been affected We are in the South part of the


region. At the moment I'm here, but I know for sure we have two people


who died in this location, the municipality, so we have so many


houses that may be destroyed and people are on the streets. So many


people are on the street, outside, waiting. We heard the after-shock.


It was the biggest. I'm a little bit scared, it was very bad. Many


buildings crashed down. We are very near to the municipality. There are


so many problems, those people in the street, the little villages have


stopped because they come to work. Of course there's an earthquake is


happening around 3:30am. The reaction to that, very shaky. If you


want to find out the latest on this developing story, the situation in


Italy, all this is being updated on a special live page. Head online for


the latest. Four of the world's biggest banks


are together developing UBS, Deutsche Bank,


Santander and BNY Mellon - as well as the broker ICAP got


together to pitch the idea They hope it will become the future


industry standard to clear It will be using blockchain


technology, the same Chinese real estate


and entertainment conglomerate Dalian Wanda expects to seal two


billion-dollars worth of film-related deals


in the US this year, according to its


chairman Wang Jianlin. China's richest man says


Dalian Wanda's next target would be He says the goal is to bring


their capability to China. Tesla Motors has unveiled


a new battery pack for the performance versions


of its Model S and X cars. The battery cell chemistry


is the same a before, but the reconfigured product store


more energy in the same space. The new 100-kilowatt hour battery


pack means high-end versions of the Model S sedan


will be the world's fastest Australia's national carrier Qantas


has posted record annual profits of $1.1billion nearly doubling


last year's result. The airline will also pay a final


dividend to shareholders Qantas has been though major


restructuring after posting record To achieve the turnaround,


the carrier has cut capacity, reduced staff and benefited


from a slump in oil prices. The flying Kangaroo is soaring right


now. Exactly. It is making money again. There is an old saying, no


pain no gain. That is being proved true.


It is going to be the first dividend since the financial crisis. Not only


billions of dollars, Qantas dropping unprofitable routes because they


cost a lot of money. There is a tailwind from the collapse of oil


prices, they have used it for contracts. The fuel costs shrank by


17%. The result is below the estimates. Shares rose by 5%. Huge


turnaround from five years ago. These are how things went in Asia.


Shares are at 5%. Dividend again. There is a reason to buy shares on


those results. Look at Europe if we can. We cannot show you that. Most


of the markets in Europe are trading lower. We've got a big event on


Friday. We are waiting to see if we get a rate rise. Not much going on.


And Samira Hussain has the details about what's ahead


HP will be reporting earnings on Wednesday.


If you remember them, this is the company that houses the


old Hewlett-Packard, so this is their hardware business.


It seems that aggressive cost-cutting


measures may help HP counter the continuing weak demand


Not surprisingly, investors will want to hear from the


company about their plans to combat this fall in demand, while still


remaining on track to cut more than $1 billion in costs in the year


The last bits of housing data coming out this week - the


National Association of Realtors will release figures for the month


The US commerce department will release building permit data,


Joining us is Mike Amey, managing director and


Let's carry on with the American team. The main theme of this week


for markets all round the world is looking ahead to what might come out


of this meeting in Wyoming. That's right. Very glamorous place to have


your key speech. The reason everyone is interested is because the US


central bank has been the only one central bank has been the only one


that felt the economy getting interest rates up. That is ideally


what we all want. Can they sneak another run through before the end


of the year? Everybody is looking to this speech. We had some comments


earlier in the week from the deputy head of the Federal reserve being


very optimistic about the state of the economy. That's right. The


deputy of the head was speaking earlier. There has been some concern


the GDP numbers were weaker than expected. But their message is


things are going OK and on the up. In the meantime we are seeing slight


declines in Europe today. It is August. It is a funny time. I think


part of this is a lot of equity markets have done very well. We've


got the stock market at a high, the European markets have done well, and


I think a lot of markets has seen that rise and taken stock and are


just bumping along the levels. You mentioned the Brexit bounce. There's


a story in the Guardian, UK economists defied Brexit fears. Is


that overly positive? It is good news that there does not appear to


have been a big knock on consumer confidence after the vote. There was


a worry this would trigger a downturn. There are longer term


challenges out there. Inflation is going up. The good news is so far


the downturn has been very muted. Great stuff. Stick around and take


us to the papers. Many thanks. Still to come: We'll be keeping


across the developing story in Italy, where an earthquake has


struck near the the town of Perugia. It has been a mixed fortunes for the


world's biggest advertising organisation. The profits were


dented, falling down in the stake of an audience measuring company.


Earlier, we spoke to the chief Executive Officer. He said there is


reason to be cautious about the future. We have all the issues quite


apart from terrorism and Brexit. Also other countries face issues.


India is the one shining star. In China we had a good first half but


we see improvements in the second half. The actual growth rate is


considerably less. The world is growing slowly by 3.5%. In that


environment, clients are going to be cautious. Very little inflation and


price power. There is a subheading in the press release which is,


grinding it out. It does feel like a bit of a growing because even though


the results are strong, we have to grind them out in a difficult


environment. On the specifics, we saw some softness in the UK. July


was stronger. How much that was because of the push of the Bank of


England, we will have to see. But the next three years, I would agree,


are going to be difficult. The government will be negotiating our


withdrawal, business wants certainty, the government wants room


to move. There is a class there that makes life difficult. Clients will


continue to be cautious whether they are based in the UK, the EU, or


worldwide. We are ready for that, that is the way that we manage


business. Sir Martin Sorrell, who promised he


will come in next time we interview him.


You're watching Business Live: There's been an earthquake


in central Italy, close to the city of Perugia.


The quake was shallow, magnitude 6.2,


and was felt as far away as Rome and Venice.


The mayor of one nearby town, Amatrice, told Italian TV that some


buildings had collapsed and people were trapped under the rubble.


A number of deaths have been reported.


On the BBC news website, you do see that the earthquake has now left at


least 13 dead in central Italy. There are images of those trying to


find anybody in the rubble. Many small villages have been affected.


Our correspondent James Reynolds, based in Rome, has gone to the


scene. We are having difficulty contacting him because it is hard in


these circumstances with phone lines and telecommunications, but as soon


as we hear from James, we will let you know. Emergency services are


trying to find survivors as we speak. You can find this special


live page on the BBC World website. Let's take a look at another


business story making "A blanket ban should be placed


on the use of microbeads by cosmetics companies" -


that's the view of a new report into the global problem


of plastic pollution. pieces of plastic that are used


in thousands of commonly used exfoliating scrubs,


toothpastes and shaving gel which are a type of microplastic,


are accumulating in the world's oceans and rivers, harming marine


life and entering the food Many of the world's largest


cosmetics companies have already committed to phasing out


the use of microbeads, but the report says this doesn't


go far enough. The UK-Environmental


Audit Committee has called Several US states have already


announced that they will ban the manufacture and sale of certain


types of products With me is British Labour


politician, Mary Creagh. She's also the chair


of the cross-party How big a problem is this? Well, up


to 200,000 tonnes of microbeads are entering the EU's oceans every year.


And that is a completely avoidable form of pollution. As you say, it


ends up in fish, shellfish and sea birds. The committee heard that if


you have eaten a bit of six oysters, you will have consumed 50 or 60


microbeads, and that cannot be good for anybody. Many companies have


already fulfilled their target not to use microbeads, and a large


proportion of cosmetics industries have said they will phase them out


by 2020. Is that voluntary action not enough? No. We found that


cosmetics companies were very reluctant to come to the committee


and speak to us about this. You're right, there is a voluntary ban that


is coming in by 2020. But that leaves some large companies not


signed up to it. Avon has said it will sign up, but has given no date


for the phase-out. And of course, there are smaller companies which


are not household names that are keeping their heads down and hoping


it will blow over. I have read some of the report. It says in terms of


damage, it is not clear how damaging this is. The UK now exiting the EU


means that our influence in terms of a banner outside the UK is


minimised. Well, the US has brought in a ban on microbeads, but only in


scrubs and shower gels, when it is used in toothpastes as well. We want


it banned in all products. The ideal would be for it to be banned across


the European Union, because that is the market in which these products


are made. But we think is a sovereign country, we can institute


a national ban and show leadership. We do have a UK cosmetics industry.


We have companies producing in this country, and we think we should take


the lead on this. A lot of people have downloaded an app that has been


set up by charities so that you can shop in confidence. We don't think


it is right for cosmetics companies to rely on our ignorance as


consumers, our inability to read the labels because they are written in


such tiny writing, and our ignorance that polypropylene is a type of


micro plastic that is in these products. Mary Creagh, chair of the


cross-party environmental audit committee, many thanks. There is


more on that online, so take a look if you want further information.


In a moment, we will talk you through some of the other business


stories in the papers, but here is how to stay in touch.


Our website will keep you up-to-date with analysis from around the world.


And we want to hear from you as well. Get involved on the Business


Live web page, on Twitter and you can find us on Facebook. Business


Live, on TV and online, whenever you need to know.


Now, Mike is back to look through some of the other stories in the


press. Big banks are planning to coin a new digital currency? If you


buy a house, the transactions go through one settlement system. Each


bank in the chain will agree that the money is there and then they


press a button and then the next bank presses a button. With a


digital currency, it is more like cash. You don't get that agreement


that everyone audits and then you make the payment and then the next


payment etc. The aim is to speed everything up. What is the benefit


of it? Speed is the key advantage. What about security? That is the


risk. If you exchange this cash and make sure that everything has worked


afterwards, then of course the risk is that you have a less secure


system and it makes it more vulnerable to fraud. That is why we


have not got there yet. Deutsche Bank absinthe and there are pitching


this to central banks. How are they getting on? -- Deutsche Bank and


Santander. Central banks like to manage the cash. It is good that we


are trying to use the technology, but I suspect this will be a long


process. I want to flag up this other story we saw in the Telegraph


today, featuring Jeremy Corbyn, leader of the Labour Party, getting


into a bit of a few raw -- furore with Richard Branson? Indeed. As we


all know, the train system has seen huge rises in passenger numbers, and


there was of course scope for greater spending on infrastructure.


Part of this is the Labour Party trying to make the play that there


is massive overcrowding, with a picture of Jeremy Corbyn sitting on


the floor. And Richard Branson pointed out that there might have


been seats available if you really wanted one. Apparently, the CCTV


reveals that he walked past them. Now, these are pictures coming from


one of the worst affected areas in central Italy, Amatrice, where a


magnitude 6.2 earthquake struck in the early hours of this morning. We


are keeping an eye on the situation. At the moment, it is reported that


at least 13 people have died and many others are trapped under the


rubble. Do head online to BBC World News, where we have a special live


page bringing you all the developments including testimonials


from people who were there at the time, pictures and the latest facts


and figures on this devastating earthquake. Stay with us here on the


BBC as we keep you across all the latest. We will see you soon.


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