27/09/2016 BBC Business Live


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have gone head-to-head in the first live televised debate


Live from London, that's our top story on Tuesday, 27th September.


Protectionism is again proving to be a key battleground in the race


We'll hear from both sides of the debate.


Also in the programme, confounding the critics.


The Asian Development Bank says China will grow faster


than expected, despite widespread fears of a slowdown.


And the European markets are open for trade.


They are all trading up in the green.


There is lots to discuss throughout the programme.


Cracking the code of entrepreneurial success!


Later in the programme we'll get the Inside Track on a business


which is giving a boost to London's whiz-kid programmers.


And Sainsbury's want to bring back grocery


It's all about keeping up with Amazon.


We want to know has the online giant changed the way you shop?


Hilary Clinton and Donald Trump have faced off in the first


Both presidential candidates have put forward their competing visions


When Hilary Clinton started talking about how well the United States


performed under her husband in the nineties, Mr Trump pointed


to what he described as the economic devastation that resulted


from the North American Free Trade Agreement signed by Bill Clinton.


Go to New England, Ohio, Pennsylvania, anywhere you want,


Secretary Clinton, and you will see devastation, where manufacture is


turned 30, 40, sometimes 50%. NAFTA is the worst trade deal, maybe, ever


signed anywhere, certainly in this country. You want to improve


transpacific partnership. You are totally in favour of it. You heard


what I said about how bad it was. He said, I can't win that debate. If


you won, you would approve that, it would be almost as bad as NAFTA,


although nothing will top that. Hillary Clinton defended her views


but went on the offensive, attacking Trump on taxation. She said that the


extensive tax cuts proposed by him would not help the US economy.


We need smart, fair trade deals. We also need a tax system that rewards


work and not just financial transactions. The kind of plan but


Donald has put forth would be trickle-down economic 's all over


again, it would be the most extreme version, the biggest tax cuts for


the top percent in this country that we have ever had. I call it trumped


up trickle-down, that is exactly what it would be. That is not how we


grow the economy. That gives you a snapshot of 90 minutes of debate.


Marianne Schneider-Petsinger, US Geo Economics Fellow


Hello, what did you make of it? Overall, I think Hillary Clinton had


a very strong performance. I think that, overall, she won. Segment by


segment, I would say Donald Trump did quite well during the first


third of the debate, which focused on the economy and jobs, then as we


move towards national security and race, he became much more


incoherent, made incorrect statements and interrupted Hillary


Clinton. Overall, I think Hillary Clinton won. The financial markets


and exit polls show that. Listening to those Mbytes, talking about


trade, Donald Trump was quite specific about that, talking about


how Hillary Clinton has changed his stance on PPP, for example. It seems


to be an easy way of beating each other up, to what extent is the


voter that keen on the discussion about trade and the economy? I think


it is interesting that trade has played such an important role but,


overall, looking at the concerns of voters, the economy and terrorism


are numbers one and two macro, trade only really plays out at the bottom.


What we have seen in the campaign and the debate, trade plays a role.


Donald Trump has said that NAFTA was the worst agreement ever negotiated.


As we saw in the clips, he pointed out that Hillary Clinton has changed


his stance on PPP. Interestingly, nobody mentioned the Transatlantic


Trade and Investment Partnership that is currently being negotiated


with the European Union. Trade comes up, because there is an anti trade


environment on both sides of the Atlantic. We saw some market


reaction, the Mexican peso surged, interestingly. Clinton is seen to


have won this one, there are two macro more to go. How influential


are these debates in helping voters decide? Overall, I think the impact


is overhyped. They might change on the margin, but overall I do not


think that a lot can happen in the last 42 days that we have between


now and November. We will see. In terms of how this debate has played


out, we will see polls in the next couple of days. As I mentioned


before, we have seen so far that Clinton won this one, but going into


the debate, expectations for her were quite high, the once for Donald


Trump were much lower. There is a debate about whether he even met


that low bar. There is still a long way to go.


Thank you for coming in, Marianne The big event is in November.


November the 8th. The Walt Disney Company


and Microsoft could both be joining a list of potential suitors


for Twitter - according Twitter shares were up more than 2%


at $23.36 in after-market trading. The microblogging service has


reportedly started talks with a number of technology


companies to sell itself, Disney is said to be working


with a financial adviser to evaluate The US Labor Department Secretary


Thomas Perez has pledged to conduct a top-to-bottom review of all cases,


complaints and other alleged violations that the department has


received concerning Wells Fargo The announcement comes after calls


for an investigation into possible wage and working-hour law violations


involving Wells Fargo staff, who may have stayed late


to meet sales quotas. Saudi Arabia has cut the salaries of


Cabinet ministers by 20% and frozen wages of lower ranking officials,


this is in response to lower oil revenues. 160 members of the council


will see a 15% drop in annual allowances for housing, furniture 's


and cars. They did not say how much money would be saved overall.


Some interesting news from the Toolis industry, something we have


followed here, they have had a very difficult year because of various


events going on in popular destinations around the world.


Turkey has experienced several terrorist attacks, not to mention a


military coup. That has really affected Thomas


Cook. The trading update, interestingly, says that summer 2016


bookings are down 4%, excluding Turkey they are rubber 8%. So Turkey


is tracking down the Thomas Cook results.


Thomas Cook shares are trading in London at double over 1%, but over


the year they are down something like 41% on the year. Although the


shares are jumping up a tiny bit today, on the year they have had a


very difficult year. Now we can go and speak to Sharanjit


in Singapore. The Asian development bank came out with Outlook today. It


essentially counters what we have heard about China's slowing economy.


They raise their growth forecasts for China this year to 6.6% from the


last Testament of 6.5%, they say it is down to fiscal and monetary


stimulus. I spoke to the Assistant chief economist of a bank in Manila,


who told me that while the external environment in China remains weak,


growth continues to be driven by consumption, and he sees an uptake


in the amount of services contributing. He says there is an


easing of growth, but not a hard landing. They have kept their growth


estimates this year and next at 5.7%, they are basically saying it


is thanks to China and India, they are upsetting the slowdown


elsewhere. Projections for India were capped at 7.4%. Essentially,


they say that is down to the strong consumption and investment revival.


They warning huge possibility of an interest rate hike, which could undo


all that by disrupting capital flows and contemplating macroeconomic


management in the region. Thank you, Sharanjit.


Asian stock markets were mostly higher today -


Then OK was up, the Hang Seng was up just over 1%. The Dow close-down


almost 1%. Traders in Asia were following the US presidential debate


between Hillary Clinton and Donald Trump.


Let's look at European markets and it's worth noting the FTSE


closed down 1.3% yesterday, its worst one-day percentage decline


since late June when Britain voted to leave the European Union.


And Michelle Fleury has the details about what's ahead


There is plenty of economic data on housing and consumer confidence to


catch investors' attention this Tuesday. There is concern about the


underlying strength of the housing market, we will get a clearer


snapshot when standard pullers releases its home price index for


July. It looks prices in metropolitan areas and it is


expected to remain steady at 5.1%. A separate report is likely to show a


slight dip in consumer confidence in September. Nikkei reports


first-quarter results, the world's largest footwear maker is expected


to report a rise in revenue -- Nike reports. Sales at home have been


tepid but they continue to grow in Asia-Pacific.


Aviation negotiators will try to reach an agreement to limit future


aviation emissions at a conference in Montreal.


That is Michelle Fleury, who has had a very busy time. I spoke to her


about four hours ago about the big US debate.


Joining us is Michael Hewson, chief market analyst at CMC Markets.


Good to see you. Did you stay up all night and watch the debate, or had


he been soaking it up this morning? I've been soaking it up, as I was


waiting in the Green room, chewing on it. What did it tell us about the


candidate that we don't already know? Not very much. We have seen a


muted reaction and markets, slightly up, I don't know if that is more of


a result of the big declines yesterday than anything else.


Ultimately, the polls are neck and neck and I think they are likely to


remain that. Let's talk about Deutsche Bank, over


the weekend there was speculation about whether or not they would


receive state aid if they needed some. As I spoke to you earlier, he


said that is always dangerous, the minute simply says we will not help


them. Apps nobody had been asking the question. Shares were down


significantly yesterday, this morning they are up a little. I


would not treat too much into that. There significant parallels to 2008,


the Royal Bank of Scotland and concerns about bad bank. They


announced a rights issue in response to concerns about their fiscal


position. It is a similar situation at Deutsche Bank, the fine from the


US Department of Justice, $14 billion. Its market cap is 14.5


billion euros. So they could not meet that. They will not be able to


provide the full amount, they have only provided about 5 billion new


rose for various litigation cases currently under way. Mat about 5


billion euros. There were significant concerns about how they


would pay any fine. They are such a huge bug, it is so crucially


important, why do you think Angela Merkel has said they will not give


them state aid? I think it is more political. She has an election,


there is what is going on in Italy. Germany are insisted that Mr Renzi


does not bail out the Italian banks, so they cannot say that they will


bail out Deutsche Bank but they cannot bail out the Italian banks.


They are in a cul-de-sac of their own making. I like that phrase.


Michael, you will be back in around five minutes, we have more stories


to discuss with Michael, but we have lots more to come.


Still to come, cracking the code of entrepreneurial success!


Later in the programme we'll get the Inside Track on a business


which is giving a boost to London's whiz-kid programmers.


And now a look at some of the stories from around the UK


and the first shipment of US shale gas is arriving in Scotland.


A tanker is bringing ethane to the Grangemouth refinery,


run by the petrochemicals firm Ineos.


Victoria Fritz is by the Firth of Forth to see the tanker arrive.


Why are they shipping gas from the US?


And also are you warm enough? I'm very warm. Good morning to you


both. Good morning, Rachel, good morning, Sally. Well, you can just


see it. This is the boat arriving. It has made its stop at Grangemouth


Port just a little way up the river and it is now heading back out to


the ocean already. This is the very first shipment of US shale gas to


Scotland and the reason it is coming from the Atlantic is because there


is a moratorium on fracking in Scotland and despite a lot of


political discourse in England as well, there has yet to be a green


light when it comes to fracking in England either. So at the moment the


only place the company says it can get its shale gas it is from the


United States. It seems like a very big move, but they say the gas is


crucial for the health of the Grangemouth plant where it processes


pet tro chemicals used for the manufacturing of food packaging and


plastics that are used in bottles and pipes as well. So they say they


need this gas and if they have to go to the US to get it, that's where


they will go. At the same time, Victoria, it is


very controversial, isn't it? Many are arguing we shouldn't be going


down this road at all? Yeah, exactly. Some people are saying


perhaps this is the solution to our energy problem in the UK. Others are


saying that it sets a dangerous precedent. There have been reports


of environmental concerns over in the United States, things like


leaching of chemicals into the ground water system. Even earth


tremors as well. Now, there is tighter regulation that is proposed


around the industry in the UK than in the US. But lots of people saying


there is not the reserves here in the UK that there is in the US. So


until such time the reserves are proven, it seems that fracking here


in the UK is going to be on hold and we're still going to see more of


these tankers going back and forth across the oceans, well at least for


sometime to come. Victoria, we will you soon, probably


in the studio. Hopefully, a bit warmer.


Boohoo posted better results. Sales fuelled mainly by Sally Bundock!


Our top story, the two US have faced off in the first


Hillary Clinton attacked Donald Trump's policies on tax,


while the Republican candidate pointed to what he described


as the "economic devastation" that resulted from the North American


Free Trade Agreement signed by Bill Clinton.


Yes, two more debates to come. Yes, no more to say about that really,


now, is there? No! We have said enough. The markets


quite a different picture to yesterday. We're seeing upside for


most of the main markets in Europe. Germany closing down 2% on Monday.


So at the moment the DAX is up by a quarter of a percent. We were hoping


to show you figures, but we can't. They are all up across Europe.


And now let's get the inside track on Europe's tech sector.


It may contain some of the world's leading economies, but Europe is not


keeping up with countries like the US and China when it comes


So how can Europe help cultivate the next Google or Facebook?


Entrepreneur First is an accelerator company which helps high growth tech


The firm mainly takes talented individuals before


they have a team or an idea, spending six months with them to get


them to the point where they can take on serious seed funding.


The founders of Entrepreneur first have also set up Code First: Girls


which works on attracting more female talent to the programme.


Entrepreneur First were initially solely located in London


But they've just opened a new office in Singapore which hopes to emulate


Joining us now is Alice Bendinck, co-founder of Entrepreneur First.


Good morning. Good morning. Welcome to the programme. Thank you. Just


tell us how did this begin? Five years ago, if you looked at the kind


of people that were starting start-ups in London and in Europe in


general, it typically wasn't individuals with a technical


background. So in particular a computer science or engineering


background. Over the last five years we have tried to highlight the


founder of a start-up can be one of the most exciting career paths for


those with a technical background. If you look at many of the biggest


start-ups build in the US, if you think about Microsoft or Facebook or


Google, those founders come from computer science backgrounds


typically and typically what we were seeing in London was people with


computer science and engineering backgrounds were going to the


financial sector or more traditional companies. Why weren't they starting


start-ups then? If you look back five years ago, there wasn't really


an awareness that you could start up a start-up, straight out of


university or straight out of a couple of years in a job, there


wasn't really a culture around starting a start-up. Technology, it


is easier to start a start-up almost from your bedroom in terms of being


able to access millions of users with little capital to get started.


You set up Code First: Girls Because you felt there wasn't enough females


coming through. It starts on university campuses. Is that not too


late to reach girls who have given up maths and given up on sciences.


The issue with girls we go down the arts route. Is university not too


late, should you not be aiming for schools? We should be aiming for


schools, but it will be a decade before we see those young women


joining the workforce. Many of them come from arts backgrounds, history


or Spanish and they are not necessarily from these backgrounds,


but that doesn't mean they can't learn to you to programme and build


their own apps and own software. You don't need a maths background. If


you are one of these people who want to start something as it were, you


join your programme, Entrepreneur First, you're in this incubator for


six months. Talk us through how that works. What do you want from that


individual? Do they have to sign up? Do they have to pay? How does it


work. We take them before they have a team and before they have an idea.


We make an investment in their company. We invest in their company


as they go through the programme. We help them find a co-founder and


build their team around them. We help them build their first product.


You have got to believe in their company, whatever it is you think


they're going to start, you need to take that on board knowing it will


become a success? No, no, we take them just based on their individual


talent. We are looking at the quality of their technical skills


and founder skills. We are a company builder rather than a company


investor. Does that mean that you own part of what they create? Yes,


we do, yeah. We take 8% of the companies that come through and we


invest in them at two points during the programme. So how did you get


involved? You look very young to me. Has that been a barrier for you at


all or not? The tech industry is a relatively young industry. And I


suppose one of the things that I think helped me and my co-founder


and we see helped the people go through EF is naive optimism. Not


necessarily knowing how things are meant to work and what the status


quo are and saying things could be done differently, why are they done


this way? Some of our most successful companies have come from


that naive optimism where they don't know anything great. That's great. A


bit of naive couldn't meusm and we'll get to the cul-de-sac later!


Thank you for coming in, Alice. 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. Wep keep you up-to-date with the


latest news. And we want to hear from you too. Get involved on the


BBC Business Live web page at: On Twitter, we're at:


And you can find us on Facebook at: Business Live, on TV and online


whenever you need to know. Michael Hewson from CMC Markets


is joining us again to discuss. We want to look at this story we saw


about, my Mandarin maybe questionable. It is a Chinese hunger


for Australian foods. So people in for Australian foods. So people in


China are wanting products sold in Australia, baby milk, beauty


products, fashion items, this sort of thing, and they are commissioning


people in Australia, who are called the Daigou and they are buying the


products, charging 50% mark-up and shipping them to China and the


Australian Government said they think they are missing out on 1


billion in tax. This story speaks to Chinese tourists hunger for overseas


goods. It is cheaper to buy fashion goods, but also food stuffs overseas


because of import tariffs imposed by Chinese authorities. And also I


think there is, I think there is an issue of what I would call


authenticity, koufrt goods. Counterfeit goods. US manufacturers


in China manufacture typical brand names, but they are of a lesser


quality than the goods you get in Australia or Hong Kong. The Chinese


tourists go abroad and buy them and ship them back and the mark-up is


such that ultimately it still works out cheaper. And our shopping habits


are changing and a lot is down to Amazon. Sainsbury's one hour


delivery service on a bike trying to compete with Amazon. We have had a


lot of viewers come in with their tweets. Tell us about this, Michael.


It is a one hour delivery service. Shoppers can order 20 items to be


delivered within an hour. Sainsbury's are going back to the


future with this. They last made deliveries on a bike 130 years ago


this. Is trying to kate tore a need that's not there. They are trying to


take on Amazon. We are talking about fresh fruit and vegetables. I don't


know about you, but me, I like to feel the fruit and veg before I buy


it. And smell it! Catering to a need that's not there. Agree with that


Michael. Emmanuel says, "One day delivery, that's his favourite thing


all the way. ." Thank you for watching. We will see you again


tomorrow. Bye-bye. Hello some sunshine on offer across


the northern half


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