31/08/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Bland.


Pressure mounts against President Dilma Rousseff at her


impeachment trial as her opponents make their final arguments.


Live from London, that's our top story on Wednesday


Brazil's suspended president, Dilma Rousseff, finds out if she'll


Also in the programme: Chaos in Mumbai as thousands


of auto-rickshaw drivers go on strike because of lack


of regulation covering ride-hailing app services.


And the markets are open in trade in Europe, and they are all headed down


slightly. We will talk you through slightly. We will talk you through


the winners and losers. And we'll be getting


the inside track on one company's quest to find a solution


to the Zika epidemic. And as Indian auto-rickshaw drivers


go on strike in Mumbai because of services like Uber,


today we want to know: Does this mean that every method of transport


now needs to have an app? The impeachment trial of Brazil's


first female President, Dilma Rousseff is approaching it's


final stage with a vote Ms Rousseff is accused of illegally


manipulating government accounts to hide excessive


spending by the state. Despite this, last year


the government still ran a budget deficit -


that's the difference between spending and tax revenue -


worth more than 10% And the government's finances aren't


the only the problem facing Inflation currently stands at 9%,


double the target rate set This sustained rise in the cost


of living has only made things worse for the 11 million people in Brazil


without a job. He's an emerging market


economist at the research What is the expectation about what


is going to happen? Will she survive, or will she be removed


permanently? It would be a huge shock if she was not removed


permanently. We have had so many hurdles we have moved through, votes


in the lower and upper house, and this is the final hurdle and would


be a huge shock if she were to somehow come back from this. We


fully expect her to be ousted. Have you seen much of a market reaction


to the beginning of the impeachment trial? Brazilian markets have


rallied strongly since the start of the year, they have performed well


in the emerging world, that is to do with two things, one is the rising


commodity prices and external factors, and the other is Dilma and.


But even if Dilma Rousseff is impeached and there is a change of


government, there is still a lot going on politically. There are many


other politicians on both sides of the camp being investigated.


Absolutely, that is one of the sticking points. There are


implications for others in the scandal, and it is a clear risk,


should the administration continue on to 2018. And you mention Michelle


Tanner, the acting president, but if Dilma Rousseff is removed, he would


stay on as president, and he might introduce austerity measures the


public didn't vote for. He has already started to employment


austerity drives, and the markets like that. As you mentioned, the


budget deficit is huge, and it needs to be closed, but the electorate,


painful austerity is never good for painful austerity is never good for


an electorate. In the meantime, other headwinds constant, the low


commodity prices, the price of oil historically low, so that still has


a real issue for Brazil? Of course, the price of its exports is still


the economy is weak and the economic the economy is weak and the economic


recovery week. Data later is expected to show the economy still


in recession, although things are improving. Edward Glossop, thank you


for talking is through that. Soon as we hear the outcome of that meeting,


we will let you know an BBC One is. Let's round up some other News for


you now. South Korea's largest shipper


has reportedly applied for receivership after its creditors


decided to stop pumping in money. Hanjin Shipping had piled


up debts of $5 billion Like many in the shipping


industry, it's been hit hard by the slowing global economy


and lower freight rates. So far there's been no


comment from the company. Canada's Prime Minister Justin


Trudeau has arrived in Beijing on a trip which was supposed to be


about deepening Canada's Despite the fanfare,


a disagreement over Canadian canola, or rape seed oil,


exports to China is Google is to take on Uber


with a new car-pooling app that will let commuters give others


going the same way a lift. The Waze app gives traffic


conditions and driving Since May, the firm has been


running a pilot service which uses Waze to connect drivers


and passengers near its If successful, Google may look to


expand the service to other cities. The move may undercut its rivals


as Waze charges cheaper rates. I was just thinking about this whole


thing of hailing something with an app. You have never used Uber or


Halo or any of the others? Know, have you?


How do you get around? Legs! It is the healthy option. Let's get more


on the subject. Now to Mumbai - where commuters have


had a chaotic start to the day. More than 80,000 auto


rickshaws are on strike. They're demanding stricter


regulation for taxi services Divya Arya is in Mumbai


for us this morning. There she is! What impact has this


had? The junction behind me used to be busy everyday, full of auto


rickshaws, but today, there is only one autorickshaw to be seen, and


traffic is thinner. That is because, as you said, the autorickshaws are


on strike demanding regulation of taxi services like Uber and its


Indian equivalent, Ola. This has caused a lot of inconvenience to


commuters, and some of those I spoke to earlier said it is ironic that


because the autorickshaw is our on strike, we are now dependent on the


hailing services to get to where we need to be. Mumbai residents depend


a lot on the suburban railway system, but that doesn't come to


that house, so to go to and from the railway station, people have become


more and more dependent on rickshaws and taxis, and today hasn't been a


great day for them. But from the rickshaws' perspective, the taxi


services have meant loss of business for them, and they say that whole


problem is with the surge pricing which enables apps based taxi


services to drastically reduce their fares when the demand is low, making


it may be cheaper to travel by taxi as compare to a rickshaw. The


government is keen to talk to the trade unions and resolve this and


reach a consensus. At the same time, it doesn't want to be seen as


business on friendly, especially when there is new business like Uber


now coming to India. Thank you very much, Divya, good to see you live in


Mumbai. Looking at markets in Asia today, it is a mixed picture. Apple


shares down just a percent following the big decision coming from the


European Commission, we will talk about that later. Japan closing at a


one-month high today, the yen much weaker than it has been, weaker


since July. That boosted exports listed on the stocks. The price of


oil still edging down slightly, it dropped 1.3% in about 30 minutes


yesterday afternoon in rumours that Iran was going to increase its


supply of oil, but energy stocks having a tough time still, oil


around $48 a barrel. Let's have a look ahead to what is going on in


the US. Michelle Fleury is therefore as. Janet Yellen said last week that


a case for a rate rise was strengthening for the US reserve.


Economic aid is being viewed through that lens, including the latest


report on private employers due out on Wednesday. Payrolls processor ADP


is likely to say that private employers hired 176,000 workers in


August, a sign ahead of Friday's government jobs report that US


employment is continuing to make solid gains. In other areas,


progress in the housing market, contracts to buy previously owned


homes are believed to have increased 0.6% in July. This is after they


rose 0.2% in June. And in corporate news, the growth of cloud computing


is believed to have given a boost to sales force .com's second-quarter


earnings. The cloud software maker is expected to report a rise in


revenue. Joining us is Tom Stevenson,


Investment Director Good to see you. Jobs figures out


from the US, it seems all the markets are holding their breath


waiting. The markets are quiet, it is still the holiday lull, but they


are looking forward to what the Fed will do in three weeks, and the


first indication of what they might do on September the 21st will be


provided by the payrolls on Friday, but before that, later today, ADP


jobs figures sometimes can be a bit of a sneak preview of what they will


look like. What do you think they will do on the 21st of September? I


am putting you on the spot! You are, and the market is split on this. I


think they will probably hold fire, the slower the longer rates


environment is turning to eight lower forever rates environment, the


Fed will find it very difficult to raise rates,. What about the


election? I think that makes it less likely that they will move now, they


will wait for the election to be out of the way. It is quite close to the


election, September the 21st. Some interesting moves that will take


effect on Monday, one house-builder out, a gold mine in, out of the FTSE


100. Every three months, the FTSE 100 rejig is itself, and companies


that have lost so much value they have fallen below 110th in the


rankings for light. Berkeley homes will for light, it's shares have


fallen 90% since Brexit despite the fact that prices have bounced back


since Brexit, and a Russian gold mine is coming in. Very interesting,


thank you, Tom. We will see you later and talk through some


newspapers. Still to come, we'll hear about one


company's attempt to find a solution to one of the world's fastest


spreading diseases, You're with Business Live from BBC


News. Pregnant women and new mums need


more protection at work - that's according to a group of MPs


who say there has been a "shocking" The Women and Equalities Committee


is calling for the Government to act following a report published


earlier this year which indicated that the number forced


to leave their jobs after giving birth has almost doubled


to 54,000 since 2005. But last year it was revealed that


tens of thousands of women Pregnant women and new mothers now


face more discrimination at work More than one in ten surveyed said


they had been dismissed, made redundant, or treated so badly


they had to leave their jobs. It was the largest survey


of its kind, so what should be A committee of MPs have


laid out what they think The MPs want to see a German-style


system where pregnant women and new mums can be dismissed only


in exceptional circumstances They also want a substantial cut


to the cost of bringing a discrimination case


to an employment tribunal. And they want paid time off


for antenatal appointments for casual, agency,


and zero-hours workers. Others believe it is more


important to change attitudes and educate women instead


of changing employment laws. The Government says it


will carefully consider Lots more on that story on our


website. Do take a look, and there are case studies as well. We have


talked to women with various experiences when it comes to going


back to work after pregnancy. I am trying to find the story. We have


had a nationwide house price rise in August, excuse our system, we don't


seem to be loading images at the moment, but it is talking about


house prices going up 0.6% in August. The pick-up price in growth


somewhat at odds with the size of the housing market according to the


Nationwide's chief economist. New buyer enquiries have soft and --


softened after the additional stamp duty on second homes. That is all on


our website, along with other stories.


You're watching Business Live, our top story:


Brazil's suspended President, Dilma Rousseff, finds out if she'll


be permanently removed from office, today.


When we hear news on that, we will update you.


A quick look at how markets are faring.


Treading water today, not a significant direction in either, but


some of the energy companies losing ground still as the price of oil


remains softer than it has of late. Let's get the Inside Track


on the quest to cure one of the world's


fastest-spreading diseases. The Zika virus will cost the global


economy $3.5 billion this year, according to the World Health


Organization. Cambridge-based start-up Excivion


has received ?500,000 in government funding to develop a vaccine


for the disease. The new technology hopes to remove


the need for cold storage and distribution of vaccines,


allowing for stockpiling of vaccines With us is Peter Laing,


Chief Executive of Excivion, As a start up, a small company, how


can you compete, when it comes to developing a vaccine against zika


when you are up against some of the giants of the pharmaceutical world?


It is all about insight and intellectual property. If you have a


good idea and you are able to get a granted patent on that idea and you


can develop that as a product, you can fend off hostile takeover bids


from larger companies and you can develop a product. The basis of the


company is intellectual property. It's all based around having a


vaccine against zika, which will fight off the virus but also fight


off its close cousin, dengue, because they go hand in hand and


help each other around the world. The reason you are particularly


interested in zika and dainty, that is your history, the science you


were looking into two years ago -- Dinky fever. I used to be a lecturer


at University of Nottingham. I left in 1994 to join a company and I was


RND director of that company and a number of other companies in the


vaccine field. The opportunity arose to develop a Zico vaccine product. I


had an idea of how to do it, a different idea. I filed a patent, we


have a pending patent. What about the outbreak in Brazil, it was


coming up to the Olympics, so much in the news, and it has pledged to


Florida as well. Does that mean you get more interest, more funding from


organisations? You do. It has really impressed the governments of these


countries. And also non-governmental organisations, the world over. It's


a grave humanitarian crisis that is giving rise to babies with


microcephaly. Many companies are in the race to find a way to stop it.


The unique things that Excivion has is a new way of doing that, which


will also work against these other viruses and work against them


working together. What if you don't win the race, though? There is room


for multiple products in the field. If you look at other vaccines, there


are multiple vaccines against diphtheria and so on.


The race is on, but the race is on where people develop just a Zico


vaccine or its cousin, -- zika vaccine or its cousin, dengue. It


could trump these other products. How soon do you expect to have a


vaccine out there that is marketable, affordable and being


used? The WHO emergency will result in


fast track approval of vaccines in the field. Vaccine typically take


10-15 years, to develop. I think we could be on the market with a


vaccine in about seven years. I would love to say less, but safety


is the most important thing. A lot of vaccine development is about


proving safety as one as efficacy. Briefly, we are running out of time,


what's fascinating as wild as you and your wife are running this


company. You contract in the expertise. The men and women in the


white coats in labs are not in a building near you, they are all over


the world. That's right. We have people working for us in India, in


the US and in Europe and the UK. We can pick and choose the best talents


to put together, to achieve the objectives, without having to have a


huge infrastructure from the outset. It is a way that a lot of start-up


companies begin. We aspire to have our own premises and our own labs


and I have directed big labs. When will you get bored by a big Pharma


company? I don't want to get bought by a big Pharma company. I would


like to license the technology to a big Pharma company and develop new


projects about a Japanese virus which you will hear about in due


course. We will keep an eye on how things are going. Thank you. Thank


you. In a moment, we'll take a look


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


to get in touch with us. You can stay ahead with all the


Dave's breaking business news, we will keep you up-to-date with the


latest details -- all of the day's. We have BBC editors around the


world. We want to hear from you, get involved on the BBC business live


web page. Business live, on TV and online,


whenever you need to know. Let's take a look at some


of the stories in the papers. Tom Stevenson from Fidelity


Worldwide Investments Thanks very much. We've been talking


about these a while ago, the Apple ruling, EU Apple ruling, there is a


threat of a split in the new Irish government. What should they do in


terms of this appeal? This is coalition government at work.


Different sides of the coalition in Ireland have different agendas,


here. It is quite difficult to see that they won't appeal. Not to


appeal against this ruling would effectively be a tacit admission of


providing illegal state aid. That is extremely unlikely. I think it would


also be an admission that Brussels is right to interfere in national


tax policy. Ireland is unlikely to do that because it's tax


competitiveness is a key selling point for Ireland. We are in a


situation where it is a race to the bottom when it comes to corporation


tax around the world with government trying to attract the


multinationals. That's right. Countries around the world are


trying to attract multinationals. It's interesting to see how the UK


will respond to this. They say we are open for business. Theresa May


opening the Cabinet at Chequers today. I am sure this will be on the


agenda. As we move away from the EU, over time, then our competitiveness


and our tax competitiveness will become very important. Presumably


even if they don't change the corporation tax rate in the UK,


simply big multinationals, you will not get a situation that you had


with the EU where suddenly you are hit with an unexpected tax bill.


That will appeal very much, wouldn't it? That is why the Irish government


is so furious about this. They have really been undermined by the EU.


What would you want to pick? English Premier League?


Smashes window record. I must admit, I am not surprised to hear this,


this story comes around again and again and yet the figures go up and


up. It seems like there are no breaks. They do go up and the window


closes today at midnight tonight. For three months. It looks like


about ?1 billion will be spent on transfers. Interestingly, that is


actually less in terms of a proportion of football club's


revenues than it was a few years ago. It is not that they are being


irresponsible, but it is the amount of money flowing in from TV rights


is so enormous. Who pays for it? Is it the fans? Ticket prices?


Television rights pay for it. Subscribers to TV programmes. Let's


talk about apps. Do you use apps to get a taxi? I have used Uber. No


need to mention the company. Halo. , etc. We asked whether every mode of


transport needs and apt to survive. Every business, regardless of what


you should do, should have a nap, how can I take them seriously when


they don't have an app? Every business needs an app? Yes,


everybody walks around with a smartphone and that is how you


access them. Good point. Good to see you.


Not a bad day today, not just as warm as


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