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This is Business Live from BBC News with Sally Bundock
A make or break week for Deutsche Bank -
it's boss John Cryan is expected to negotiate deals on job losses
in Germany as well as try to negotiate a much smaller legal
Live from London, that's our top story on Monday 3 October.
Leading German firms have rushed to defend Deutsche Bank
amid concerns over the troubled lender's financial health.
Executives from Siemens, Daimler, Munich Re and BASF all say
The UK's Chancellor, Philip Hammond, is expected to say
at the Conservative party conference today that he will manage
the economy in a different way to his predecessor,
Markets today, a public holiday in Germany. Elsewhere at a slight
uptake but sterling has been falling. We will tell you why.
We will be getting the inside track on how a Japanese fashion brand is
hoping not to get lost in translation, as it makes a move into
Europe. And it used to be a British tradition to put the kettle on for a
cup of tea during the break of your favourite TV shows, but not any more
according to the main energy supplies. People say more people use
on demand and catch up services to watch television. So we want to know
from you, how much live television do you watch? Maybe you are watching
now. Use the hashtag BBC live. A warm welcome to the programme. I
hope you have your cup of tea or coffee latte or whatever you are
drinking right now. We have a packed programme with plenty to discuss. We
are starting with the fact it is another pivotal seven days for
Deutsche Bank following a week in which shares
in the German lender fell Deutsche is in the process
of negotiating a 14 billion dollar fine in the US for mis-selling
mortgage-backed bonds in the lead up Over the weekend, German business
leaders have come out These include the engineering
conglomerate Siemens and the parent company of Mercedes-Benz,
Daimler. Last week, Deutsche's chief
executive John Cryan moved to reassure staff
about the bank's financial position, stating that the fall in share price
was due to what he called Following reports that Deutsche
could reach a far smaller settlement with US authorities,
the company's New-York listed shares It's also reported he's poised
to reach a deal with labour unions in Germany this week paving the way
for job cuts in its home market. He is Senior Analyst,
Lafferty Ratings. welcome to the programme, good to
have you with us. Just before we get into the nuts and bolts, can you
remind people around the world watching, Deutsche Bank, a
relatively small bank in a global scale, but everyone seems to think
it is the most dangerous bank in the world. Can you explain why? I think
it is probably to do with its derivatives book. It does have a
large amount of derivatives on it. That means their linkage is between
lots of different banks, so lots of banks would be counterparties. If
something happened to Deutsche there would be a knock-on effect? Yes, it
could injure the system. It probably has a bigger systemic risk. On
Friday they wrote an e-mail to the staff saying it's speculation. That
it was rumours, but that is not the case, this is a bank in trouble?
Well, the investors have only been willing to pay 30 cents for every
euro worth of up value on Deutsche Bank's books. They are certainly
worried about something. Whether they are worried about short-term or
long-term... I'm not saying, my worries are more in the long term,
that I worry about Deutsche Bank's strategy and culture and whether it
has a business model that can earn decent returns over the long-term.
Many share your worries about the outlook of Deutscher. But the recent
appointment of the boss at the bank... Do you think he will pull
off the renegotiated deal with the Department of Justice? We're looking
at a five point for your rope bill instead of a 14 year and -- your row
bill. I don't know. A very political times this, isn't it? Yes. It does
look good he will get that figure down significantly from the original
14 billion or something. That is much more manageable for Deutsche
Bank's books, going forward. Deutsche is still a bank... You are
telling us something very interesting before we came an hour.
You said your research shows that smaller banks in Europe, around the
world, operate much better than the big banks because Deutsche Bank is
still, I would say, one of those banks that is too big to fail. They
can't let this bank fail? No, it's not going to fail, but in the long
term I would... We are seeing some excellence from smaller banks and
banks that are decentralised, like the bank in Sweden. It operates on a
decentralised basis, so it's like a series of smaller banks. There is
some real excellence there. In the long term that is a threat to
Deutsche because they are outperforming Deutsche. They do
outperform the bigger banks. We appreciate your time, thank you for
joining us. We will keep an eye on that and any
news coming out of Deutsche about job losses or any deal with the
United States and we will fill you in.
The electric carmaker Tesla, says deliveries more than doubled
in the three months to October compared to a year ago.
Tesla is yet to make a profit and is facing criticism
after its autopilot system was linked to several accidents.
The autopilot feature makes the vehicles automatically change
lanes and react to traffic, but it is not a fully-fledged
India has ratified the Paris Climate Change Agreement by committing
to produce at least 40% of its electricity from non-fossil
Last December, countries agreed to cut emissions in a bid to keep
the global rise in temperatures below two degrees Celcius.
India is one of the biggest emitters of greenhouse gasses in the world.
I got stuck with the tablet today. Keep taking the pills, Aaron!
What pills? Tablets!
That went straight over my head. IMG, job cuts. We were talking about
Deutsche Bank... There may be 1000 jobs going at
Deutsche in its IT section. Up to 9000 in total at Deutsche That is
what the speculation is. IMG are talking about 1800. This is all part
of the plan to save about 900 million euros by 2021.
So lots of jobs going across Europe, I would say. Let's talk about what's
been going on on financial markets around the world.
First, Karishma Vaswani is in Singapore and Sterling
is down in Asian trading after Prime Minister Theresa May set
a date for starting the formal Brexit negotiation process.
This is in reaction to what has been happening in Birmingham, at the Tory
conference. Investors not liking it, the strength of the pound? That is
absolutely right. The British pound has been falling in Asian trade down
about half a percent after those comments from the British Prime
Minister that the timeline for the process of the separation from the
European Union. You would think given that there is more
transparency, a bit more detail about when this is supposed to
happen, that what Asian investors have been clamouring for, more
details, more of a timeline as to when the timeline would happen that
they would be a bit more optimism in Asian markets today but that hasn't
happened. Even though the falls in the pound were not as dramatic as
what we saw back in June, many in Asia are telling me that's because
there is still a lack of confidence in how the UK is going to handle
this transition, in particular access to the single market. That is
key for many Asian businesses who are looking to continue doing
business in the West. OK, thank you so much. Good to see you.
We can see the markets have. In Hong Kong the Hang Seng was pushed higher
by gambling figures, lifting casino operators. In Japan talking about
that confidence survey and not moving, stagnant among the big
manufacturers in Japan. China manufacturing data out, slightly
better than expected in September. Let's have a look at markets in
Europe trending right now. All of them apart from Germany, who are
shut for a public holiday today. We no movement on Deutsche shares, we
will see how that affects estates later. France up a tiny better.
We'll talk more about Europe in a moment or two.
And Samira Hussain has the details about what's ahead
It is a new week and a busy one. Auto-makers will be reporting sales
numbers for the month of September. Stay tuned for details on how well
car-makers have fared in the world's largest economy. In the US election
news, vice presidential nominee Mr p and Tim Kane well hold their only
debate in the state of Virginia. The International monetary fund will be
holding their annual meetings in Washington this week. And at the end
of the week, we get a look at the health of the labour market when the
latest jobs report is released. US jobs, always important!
Jeremy Stretch, head of currency strategy for CIBC World Markets.
Let's start with this. Let's start with the pound react reacting in
Asia to what's happening in Birmingham today. Philip Hammond,
the UK's new wish Chancellor will speak. There were comments over the
weekend about how he is going to present a very different style to
George Osborne. What do you think that will do... Will that keep the
pound as it is all adds strength? There is some uncertainty regarding
the fiscal strategy the government. The main plank of the Osborne
Chancery has been removed. Hammond has been saying on BBC radio this
morning about the changing environment that the UK finds itself
in. That is the reason, justification, to change fiscal
strategy. Markets will be watching for the nuances today and also into
that Autumn Statement on November 23, to see if there will be any
fiscal spending plans that will be brought forward to try and provide a
benefit to the UK economy into 2017, because we are continuing to see
these headwinds about business investment, which will potentially
mitigate growth targets for next year. The government has to
potentially step in, to try and limit the damage. It's interesting,
with sterling. We heard about the day in Asia today. Sterling is going
to be so sensitive until the summer of 2019, surely? Yes, sterling will
be inherently sensitive. The talk over the weekend about the Prime
Minister talking a about this reform in 2017, it sets up a difficulty in
parliament in terms of pushing through that. That is the sort of
environment that doesn't play well with International investors. They
don't like uncertainty, which will be amplified by political skirmishes
in the House of Commons and House of Lords. And in Brussels. Yes, indeed.
There will be plenty of opportunity as we move forward to the triggering
of Article 50 for investors to be scared away and that sterling
rallies will be short lived. That will be bad news for most people
accept exporters. Yes. There is always a small silver lining.
Exporters will get a benefit, but if they are importing in order to make
the export there will be quid pro quo. You will take this through some
of shortly. Until then, thank you. Still to come, how
to move your business We get the inside track
on a Japanese fashion brand This is business live on BBC News.
First, let's talk about the Conservative Party conference
underway in Birmingham. The Chancellor Philip Hammond is the man
taking all the attention today, promising a new plan for the new
circumstances Britain is facing after the Brexit vote.
Figures from the Office for National Statistics last week
showed the services sector grew faster than expected.
So was Phillip Hammond, a key figure of the remain campaign,
wrong to warn of financial cases if we voted to leave?
He was speaking to the BBC this morning.
First of all I am delighted the economy has proved as resilient as
it has. But look, we are going through a process, we haven't served
the article 15 notice yet. We must expect some turbulence as they go
through this negotiating process and there will be a period of a couple
of years, or perhaps even longer, when businesses are uncertain about
the final state of our relationship with the European Union. During that
period we need to support the economy, to make sure consumer
confidence remains, to make sure business confidence is stable, so
that we get the investment that keeps the jobs, that keeps Britain
growing. That's my challenge as we go through this period.
Hammond is also expected to announce a boost for ?5 billion
house-building stimulus package today funded through borrowing.
Former Chancellor, George Osbourne, had promised a budget
It was the right approach for that time. But on 23rd June, the decision
the British people made changed our economic circumstances. We're going
to go through a period as I have said when there will be some
turbulence and uncertainty in the economy and it is right that the
Government has the flexibility to be able to support the economy, to
support jobs, to support economic growth during that period. And that
means that we have to reset our expectation about when we can reach
that point of sustainable public finances. George Osborne had set the
date at the end of this Parliament, 2019/2020, what we have said is that
we will not aim for a surplus in 2019/2020, but that doesn't mean
that we are abandoning fiscal discipline.
Philip Hammond there. More on our website.
Leading German firms have rushed to defend Deutsche Bank
amid concerns over the troubled lender's financial health.
Executives from Siemens, Daimler, Munich Re and BASF have
The Goldman Sachs is closed. It is a public holiday.
-- DAX. And now let's get the inside track
on the Japanese fashion brand Kemi. It is a well-known brand in Japan
which is now hoping to become The brand was founded by Junko Kemi,
a businesswoman who struggled to find clothes that worked
with her busy professional life In a moment we'll talk
to her about her journey from the rather restrained
Japanese corporate world Kemi now has five shops in Japan
and a thriving online business too. The business employs
around 30 people. Kemi selected London as their first
international territory due The company's international
expansion plans include other financial hubs like Singapore,
Frankfurt and New York. Junko Kemi, founder and lead
designer of Kemi joins me now. Welcome. Good morning. Welcome to
the programme. Can I start? I'm interested. You came from a very,
the Japanese corporate world, right and let's be frank, that's a very
serious, rigid, corporate world. And it is male dominated. Yes, male
dominated and you have gone from that into this free flowing fashion
industry. How did you make that transfer? I was born in Japan and my
grandmother owned a shop. I grew up seeing her business and she was my
role model. She enjoyed her role and the responsibility and she made her
customers so happy. Ever since I was 16 years old, I dreamt that I would
own my own company. After that I joined a big management consultancy,
a corporate strategy company as a management consultant and after
that, I started my own marketing companies and for three years I
worked so hard as a consultant and after that when Japan suffered a big
earthquake in 2011, I thought that life is short and I want to support
the business women like my grandmother. So I started Kemi. How
easy was it to start? You're very established if Japan. You have got
high-profile clients wearing your clothes, some are on television,
some are celebrities. How did you get to that point? So basically, we
are a very small company. So we are using social media and the customers
friends and friends of friends saw a TV anchor. And tell us about your
dresses. They are not cheap in the UK. Can I hold one up. The point is
they're hand-made in Japan. This is silk, isn't it? This is silk. They
are washable. So I can put this in a washing machine? Yes, everything,
the jacket and the suit and these dresses, we can wash. They would
look good on you Aaron. I'm thinking Saturday night! I washed over ten
times. Wow. That's amazing. London, I mean, was that an easy decision to
decide London is going to be the first? Yeah. Yeah. Yeah. I love
London and the multi-cultural and the professional services are big
here. But how do you plan to stand out? It is such a competitive market
in London? There are so many places to go and buy things like this. As
we did already in Japan, so we focus on professional busy women and they
are using an online shop first and we are planning to have a physical
shop in the City area of London and in Canary Wharf in one year. Canary
Wharf watch out! Thank you very much for joining us. Good luck with your
launch here in London. Shthis is how to stay in touch. The
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whenever you need to know. So you have got no excuses.
As you can see, Jeremy is back. On demand TV switches off, National
Grid power strike for a cuppa. This is National Grid where it would see
a massive surge when the kettle goes on in the old days, the commercial
break. It is the old days. The idea that we all watch a programme
collectively and we get to the end of the programme or an ad break and
everybody would make a cup of tea ready for the next part. Clearly,
there are more and more people who watch on demand. I watch virtually
no TV live. I watch all of it on demand or recorded. These issues and
it is interesting for advertisers as well, of course, because I don't
watch any advertising breaks. We just whiz through it. One of the
structural changes. It is the main screen or the second screen if you
will second screen being the tablet. One viewer says, "I watch live TV as
long as time is available." Does he make the tea? This viewer says I
only watch Business Live. The list goes on. Due it busy schedule. News
bulletins, if you want to watch those live, but again, you can watch
up with news on the internet or with other media sources. There is the
pause button. You don't have to wait for the commercials. Right. Other
stories... The Chinese. UK shops looking to Chinese tourists for a
golden week. There is a flip side about the Brexit story because we
find as consumers if we're going abroad the pound goes not as far as
it did pre-Brexit. But for those visitors coming to the UK, whose
currencies have appreciated they can get what they perceive to be bar
gains. In the context of Chinese shoppers who are keen spenders it
maybe the case that as we see another influx of Chinese visitors
during the golden week period that could be good news for retailers.
Have we got any evidence that this is happening or is this the hope
from the point of view from retailers? There is a lot of
anecdotal and the foot fall data is variable on occasion. So I think
what we're seeing is domestic consumers are being more reticent in
terms of spending and we are hoping that we're going to get the foreign
visitors who are going to fill the gap, but you have to debate where
the foreign visitors come to. In London, we will see evidence that
through their foot fall in the high street. In regional centres, perhaps
less so. We keep saying it is the flip side, but even property is 10%,
15% cheaper. There is a competitive advantage if you're prepared to take
the risks which maybe associated with the next two or three years.
Jeremy, thank you very much. It is a long haul flight. That's for
sure. That's Business Live for today. We will see you again
tomorrow. Bye-bye. Hello there. Good morning. We saw
some big improvements in the weather over the weekend and it is a very
quiet week ahead as well. This was the Weather