06/10/2016

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:00:10. > :00:18.This is Business Alive. A two face the economy, booming growth, and a

:00:19. > :00:24.third of the world's poorest people, India looks for a way forward. That

:00:25. > :00:38.is our top story on Thursday the 6th of October.

:00:39. > :00:45.India playing host to the World Economic Forum. How can one of the

:00:46. > :00:52.world's fastest economies tackle poverty at home? Also mobile wars.

:00:53. > :01:02.Samsung takes on an artificial intelligence pioneer, and the maker

:01:03. > :01:13.of Apple's Siri. Deutsche Bank shares doing well this morning, up

:01:14. > :01:18.2.5%. We will hear from the Nigerian e-commerce firm taking on the giants

:01:19. > :01:22.of the tech world. Jet packs may be about to go on sale to the public

:01:23. > :01:29.next year. Certainly the case in the UK. What kind of sci-fi invention

:01:30. > :01:42.would you like to see developed? Use the hashtag.

:01:43. > :01:49.Welcome to Business Alive. In India business and political leaders are

:01:50. > :01:56.gathering for a summit of the World Economic Forum. India amongst the

:01:57. > :02:01.world's fastest growing economies. Rising asperity helping to reduce

:02:02. > :02:06.global poverty levels. Still serious problems. The World Bank defines

:02:07. > :02:17.extreme poverty than living on less than $1 90 day. About 760 million

:02:18. > :02:23.people in 2013. Although that is 100 million fewer than the previous

:02:24. > :02:28.year. Part of a longer term trend. The number of people living in

:02:29. > :02:34.extreme poverty has fallen by 1.1 billion since 1990, despite growth

:02:35. > :02:37.in the world's population. Down to a strong income group in Asia,

:02:38. > :02:45.particularly China, but India as well. Around half of the world's

:02:46. > :02:49.poorest live in sub-Saharan Africa. 224 million of the poorest people in

:02:50. > :02:57.the world, one in three still live in India. By far the country with

:02:58. > :03:05.the most poor people. Let's go live to the World Economic Forum, under

:03:06. > :03:10.way in Delhi. You have been talking to many of those attending this

:03:11. > :03:18.event, with various views on how to tackle this challenge. Tell us more.

:03:19. > :03:22.Like you said, a big challenge that India faces. Growth has been steady

:03:23. > :03:28.for the last couple of years, and predicted to be strong this year,

:03:29. > :03:31.and the next year. There is a huge growing divide between those who

:03:32. > :03:36.have and have not. A challenge to make sure there are enough jobs for

:03:37. > :03:40.the millions coming into the job market, lifting them out of poverty.

:03:41. > :03:47.They have do attract more foreign companies to invest. They have been

:03:48. > :03:54.talking about infrastructure. I have a businessman, can I ask you,

:03:55. > :04:00.infrastructure, India needs about $1 trillion of investment, is that

:04:01. > :04:06.happening? We need about $1 trillion, any next five years, after

:04:07. > :04:10.that a couple more. Some of it is happening. A lot more can happen, in

:04:11. > :04:15.terms of getting better investment off the ground. The big challenges,

:04:16. > :04:22.when foreign companies talk about investing. What sectors? India needs

:04:23. > :04:28.investment in all areas. We need across all sectors. Most of it is

:04:29. > :04:34.focused on the roads. It has developed the most over the last few

:04:35. > :04:39.years. Especially the actions in the last 24 months, a lot more interest

:04:40. > :04:45.in the roads. Especially on Brownfield sites. A lot of insurance

:04:46. > :04:49.funds, investment funds seeking to take positions on these assets. One

:04:50. > :04:56.of the big challenges, the build-out, still fairly significant.

:04:57. > :05:01.Most global companies are not really in the mood, they don't have the

:05:02. > :05:08.appetite to take on these, roads, power, ports. Is it fear because of

:05:09. > :05:15.the timing it takes to pass these various orders can getting land

:05:16. > :05:19.rights? Environmental clearances? These are huge projects, getting

:05:20. > :05:24.them off the ground could take years in India? It is a very endemic

:05:25. > :05:28.challenge, for infrastructure in most parts of the world. Tough to

:05:29. > :05:36.get clearance, right away. Tough to get them going, probably more than

:05:37. > :05:43.in many other countries. Having said that, in a number of sectors we have

:05:44. > :05:48.seen progress, power. The policy is very clear around linkage. The next

:05:49. > :05:54.big step would be to start seeing these minds starting to produce.

:05:55. > :05:58.Once we see steps like that, the appetite for foreign investors,

:05:59. > :06:03.financing and operating, it will be a lot more. As you heard India needs

:06:04. > :06:07.more than $1 trillion of investment in the next five years in

:06:08. > :06:12.infrastructure. Offering a lot of opportunities for foreign companies,

:06:13. > :06:18.getting them here and attract them will be in the's big challenge.

:06:19. > :06:20.Thanks, good to see you, interesting what is happening at the World

:06:21. > :06:23.Economic Forum in Delhi. A lock disgust. Some of the other

:06:24. > :06:25.news. Shares of Twitter slumped almost 10

:06:26. > :06:27.per cent late on Wednesday on a report that Google is not

:06:28. > :06:31.going ahead with a takeover bid. The report on tech news website

:06:32. > :06:34.Recode also claims Apple is unlikely to be a buyer for the struggling

:06:35. > :06:37.social media firm. Twitter has told potential buyers it

:06:38. > :06:40.wants to wrap up sale negotiations by the time it reports third quarter

:06:41. > :06:48.earnings on October 27th - according to Reuters -

:06:49. > :06:50.which reports that Salesforce.com and Walt Disney are

:06:51. > :06:54.also in the running. The Walt Disney company has told

:06:55. > :06:58.Bloomberg News visitor numbers to its new theme park in Shanghai

:06:59. > :07:02.have "exceeded our expectations". That's despite reports

:07:03. > :07:05.in the South China Morning Post that attendance levels are about half

:07:06. > :07:09.what analysts had estimated. Guests have complained about high

:07:10. > :07:12.ticket prices and long waits for rides -

:07:13. > :07:14.according to the newspaper. The park opened in June at a cost

:07:15. > :07:36.of 5.5 billion dollars. Our tablet is not working this

:07:37. > :07:38.morning. Always best to confess. When we get it working, we will

:07:39. > :07:42.follow on some other stories. Samsung has stepped up its focus

:07:43. > :07:44.on artificial intelligence by taking over Viv, a digital assistant

:07:45. > :07:46.developed by the maker The acquisition comes

:07:47. > :07:51.just days after Google launched its new pixel phone

:07:52. > :07:53.which also puts a strong focus on an AI digital

:07:54. > :08:15.assistance function. This is an interesting thing? A lots

:08:16. > :08:20.of different companies looking to do this at the moment? Are exactly

:08:21. > :08:28.right. The new technology everyone is talking about, everyone wants to

:08:29. > :08:34.be part of. Samsun, the South Korean company making a big leap into the

:08:35. > :08:43.world of artificial intelligence by buying Viv, who founded Siri, which

:08:44. > :08:47.they sold to Apple in 2010. This is supposed to be a more powerful

:08:48. > :08:55.version of Siri, which Samsung say they will use in their devices. The

:08:56. > :08:59.aim of the company is to provide additional assistance which breathes

:09:00. > :09:05.life into inanimate objects. We will see what that is like in practice.

:09:06. > :09:14.One of Samsun's upgraded phones exploding again? What is going on?

:09:15. > :09:21.Right after recalling 2.5 million of the Galaxy Note handsets, one of

:09:22. > :09:27.those announced that was safe, reportedly started smoking on a

:09:28. > :09:29.plane in the US on Wednesday. The plane was evacuated before take-off,

:09:30. > :09:36.Samsun saying they are investigating the incident. It will mark an

:09:37. > :09:39.embarrassing, an expensive new development for the smartphone

:09:40. > :09:43.maker. Stocks are a bit

:09:44. > :09:45.stronger in Asian trade. In Japan the yen is weaker,

:09:46. > :09:47.sending the Nikkei up as Japanese-made goods become

:09:48. > :09:50.cheaper for the rest of the world. The stronger US dollar leaves

:09:51. > :09:52.gold under pressure. The British pound flirted

:09:53. > :09:54.near a three-decade low of $1.2686 touched on Wednesday on worries

:09:55. > :09:56.about Britain's EU exit. Deutsche Bank shares have been

:09:57. > :09:58.rising in European The German government is pursuing

:09:59. > :10:15.discreet talks with US authorities to help Deutsche Bank

:10:16. > :10:17.secure a swift settlement over the sale of toxic mortgage bonds,

:10:18. > :10:40.according to sources in Berlin. The US Treasury Secretary will

:10:41. > :10:42.discuss America's agenda for the upcoming International monetary fund

:10:43. > :10:49.and World Bank meetings. We will get some insight into his views on the

:10:50. > :10:54.state of the global economy. The Atlanta Federal reserve bank, the

:10:55. > :10:59.president will hold a web cast to discuss how the bank will pick its

:11:00. > :11:04.next president. They have formed a committee to conduct a nationwide

:11:05. > :11:08.search to find a broad, highly diversified talent pool for the next

:11:09. > :11:13.president. Weekly claims for state unemployment benefits are expected

:11:14. > :11:17.to have gone up. What does this mean for the overall labour market? We

:11:18. > :11:19.will see on Friday, when we get the latest jobs numbers, when they are

:11:20. > :11:21.released. Joining us is Lawrence Gosling,

:11:22. > :11:37.editor-in-chief of Investment Week. Lovely to see you. So much coming

:11:38. > :11:47.on, companies, twitter, Samsung, easyJet, a profit warning. Classic

:11:48. > :11:53.post-Brexit, listed company. We're still using it to fly a lot. It has

:11:54. > :11:57.the problem of the oil price. Biggest input costs. Then we have

:11:58. > :12:11.the currencies, the weaker pound having an effect on their business.

:12:12. > :12:17.We have Next on we will see inflation brought in on the back of

:12:18. > :12:22.that. Other companies doing poorly, on the other side of the Atlantic.

:12:23. > :12:28.Twitter struggling. The earnings update on the 27th of October. It

:12:29. > :12:34.reminds us a bit of Yahoo, desperate for the sale. Are they going to be

:12:35. > :12:38.any kind of position to announce? Definitely not, if they don't have

:12:39. > :12:43.one well down the line, you cannot successfully announce a deal in two

:12:44. > :12:47.weeks' time. It looks desperate. They are struggling to monetise the

:12:48. > :12:53.way people use it. Why would you want to buy Twitter? If you were

:12:54. > :12:58.Walt Disney or Apple? You were buying more data, more connection

:12:59. > :12:59.with customers. For Disney, you can get that distribution of potential

:13:00. > :13:17.content. I am slightly worried, sales force is a more

:13:18. > :13:22.business kind of kit, does not necessarily link with Twitter. We

:13:23. > :13:27.will leave it there. We were told later about many things, including

:13:28. > :13:31.the jet pack. We want you to get in touch about that. Jet packs

:13:32. > :13:35.available in one year's time. What sci-fi invention would you like to

:13:36. > :13:38.play with? Keep those inventions coming in. We have quite a number,

:13:39. > :13:42.some real corkers. What does it take to beat

:13:43. > :13:45.Amazon at its own game? We'll meet the boss of the Nigerian

:13:46. > :13:48.e-commerce firm giving the tech You're with Business

:13:49. > :13:56.Live from BBC News. And we're looking at the effects of

:13:57. > :13:58.globalisation across the BBC today. Our reporter Steph McGovern

:13:59. > :14:01.is in her home town today, on Teesside, to see how global trade

:14:02. > :14:33.has impacted the people This is a report on Teesside, we

:14:34. > :14:38.have containers going out and coming in. Fairly small in terms of what

:14:39. > :14:43.they are dealing with. Normally ships were about 1000 containers

:14:44. > :14:49.bringing all manner of things into the UK. Anything from timber,

:14:50. > :14:52.furniture, maybe some of your Christmas presents amongst the

:14:53. > :14:57.containers. We are here to talk about global trade. A big meeting

:14:58. > :15:04.happening in America, talking about what impact global trade has had on

:15:05. > :15:09.economies. The good and the bad. The likes of the World Bank and the IMF

:15:10. > :15:15.meeting to discuss this. For an area like this, which is importing and

:15:16. > :15:20.exporting products, it can be good and bad for them. We have seen the

:15:21. > :15:25.likes of the steel industry in my home town Middlesbrough, we have

:15:26. > :15:28.seen the demise, originally built here, the great heritage of

:15:29. > :15:38.steel-making. Hit hard because of the Chinese able to make it cheaper.

:15:39. > :15:42.On the other hand, other businesses on the Digital economy,

:15:43. > :15:59.petrochemicals. We have the touchy rail plan. -- Hitachi rail plant.

:16:00. > :16:06.Interestingly, our business presenter on Radio 4 has been in

:16:07. > :16:13.Sunderland today. A lot of detail on the Business Live page. There is a

:16:14. > :16:22.Nissan plant there, a lot of worry about Brexit. The boss talking about

:16:23. > :16:27.investment, perhaps put on hold because of the negotiations. He told

:16:28. > :16:31.workers he plans to spend 1 million a week on the local economy. Concern

:16:32. > :16:45.from Sunderland Council whether that will happen. This is Business Live.

:16:46. > :16:48.The top story today: India is playing host to the World Economic

:16:49. > :16:52.Forum but can one of the leading economies in the world tackle the

:16:53. > :17:00.high levels of poverty at home. We can get the latest from Delhi on our

:17:01. > :17:06.Twitter feed. Now the European markets. A mixed picture emerging.

:17:07. > :17:12.EasyJet shares were down over 8% today. Really struggling. This is a

:17:13. > :17:16.warning that profits will be much lower, down a third from where they

:17:17. > :17:19.thought they would be. Lots of different issues affecting that

:17:20. > :17:24.company, including terrorist attacks, but also the value of oil

:17:25. > :17:29.has been rising and there has been a real weakness in sterling as well.

:17:30. > :17:33.One tweet I saw today was looking at the pound and parity with the Euro.

:17:34. > :17:38.Could we get to that point soon? Very interesting. There is a five

:17:39. > :17:42.year low against the Euro now which we will keep an eye on.

:17:43. > :17:45.Say the phrase tech Titan and most people think of Silicon Valley

:17:46. > :17:47.in the US or possibly even Shenzhen in China.

:17:48. > :17:50.One company that's aiming to challenge that duopoly is Konga,

:17:51. > :17:56.The company describes itself as the country's largest online

:17:57. > :17:59.mall and caters to over a million customers.

:18:00. > :18:02.In total the company has over 30,000 small businesses selling

:18:03. > :18:08.on its website and operates something called KongaPay,

:18:09. > :18:12.its own online payment system for all transactions on the site.

:18:13. > :18:15.So far they've received over $80 million in investment

:18:16. > :18:18.and they now have their sights set on growing the business

:18:19. > :18:29.A little earlier my colleague Ben Bland spoke to Shola Adekoya,

:18:30. > :18:32.the CEO of Konga, and began by asking him to tell us a bit

:18:33. > :18:35.Konga is an e-commerce company based in Nigeria.

:18:36. > :18:42.The platform service was first-party retail and then a marketplace,

:18:43. > :18:45.a marketplace of over 60,000 SMEs trading on a platform

:18:46. > :18:54.We do logistics, we do payment, and we have a company

:18:55. > :19:02.How do you compete against the giants like Amazon and eBay?

:19:03. > :19:06.EBay and Amazon have absolutely no direct presence in Nigeria.

:19:07. > :19:09.You can buy and they ship it to Nigeria.

:19:10. > :19:12.I guess one of our strengths when you compare us to them

:19:13. > :19:20.We can deliver quicker than they can.

:19:21. > :19:26.We had teething challenges getting the logistics right.

:19:27. > :19:29.But where we are today, we are a lot faster in delivering

:19:30. > :19:36.So if someone ordered something on one side of Nigeria for delivery

:19:37. > :19:38.to the other, how quickly could you make that happen?

:19:39. > :19:42.An average of five days across Nigeria.

:19:43. > :19:45.And this is one of the fantastic things about the network

:19:46. > :19:49.In the past we were looking at anything between

:19:50. > :20:00.Today people are getting it in five days, in three days,

:20:01. > :20:02.literally from the very end of Nigeria.

:20:03. > :20:05.Now we are beginning to see in Lagos and Abuja, the big cities,

:20:06. > :20:08.Where are you finding the traffic is coming from?

:20:09. > :20:23.75% of transaction traffic is mobile.

:20:24. > :20:25.But in this there are some very interesting behaviours.

:20:26. > :20:28.People are still very sensitive to the data consumption.

:20:29. > :20:34.So you find that people browse, add to cart, and then maybe

:20:35. > :20:37.when they get a chance on a desktop, look at those items

:20:38. > :20:40.that they are interested in, see all the details,

:20:41. > :20:44.You find people moving between phones and desktop.

:20:45. > :20:47.Did you find people were reluctant to move away from cash

:20:48. > :20:57.I guess for payments, people put in their card details

:20:58. > :21:00.online, so first of all you had to get through the barrier of people

:21:01. > :21:08.There has been a lot of fraud in the past.

:21:09. > :21:11.But even though that had been fixed, people had issues putting

:21:12. > :21:21.What we have had to do is work on KongaPay,

:21:22. > :21:23.taking cards and working with MasterCard and a few other

:21:24. > :21:27.such that we give customers comfort around their payment.

:21:28. > :21:30.And then payments move from a world of six clicks down

:21:31. > :21:43.What were the challenges you were trying to face

:21:44. > :21:45.when you tried to create an online payment system?

:21:46. > :21:46.Well, the biggest challenge was convincing

:21:47. > :21:58.Convincing them that we are not after your customer.

:21:59. > :22:00.Our main aim is to ensure that payment happens seamlessly

:22:01. > :22:02.on our platform, that customers have a fantastic experience shopping

:22:03. > :22:08.and being able to prepay for their products.

:22:09. > :22:14.That was the chief executive of Konga talking to Ben Bland. We have

:22:15. > :22:18.been asking you what you would like to see being made into reality

:22:19. > :22:21.because there is a story in the Telegraph about jet packs being

:22:22. > :22:27.brought into the UK as of next year. These other tweaks we have got

:22:28. > :22:32.coming in. Very popular our transporters and teleporting, from

:22:33. > :22:36.Chris, Steve, Gary and marina. They want the Star Trek transporter,

:22:37. > :22:49.which is very specific! You have got to be specific! And Vince says a

:22:50. > :22:52.replicator because then you can have whatever you want in any quantity

:22:53. > :22:55.whenever you want. To me that sounds dangerous. Extremely dangerous. The

:22:56. > :22:58.editor in chief of Investment Weekly is waiting patiently. I would like

:22:59. > :23:03.to have hindsight because so many people in the markets say they would

:23:04. > :23:08.have done something else with hindsight. Particularly since 2008.

:23:09. > :23:16.So you don't fancy one of these? We have a video of how the jet packs

:23:17. > :23:21.work. Finally enough, I would, because just getting from Canary

:23:22. > :23:24.Wharf to the West End or even the City, in minutes, in seconds

:23:25. > :23:30.potentially, and 60 kilometres per hour. These are the ones where they

:23:31. > :23:36.are attached. I have seen these already on the Thames. Going over

:23:37. > :23:39.the Thames. This new one at the Telegraph is talking about, there is

:23:40. > :23:46.no attachment whatsoever. They are looking for more money at the moment

:23:47. > :23:50.to make this mass market. They are saying they could get the public

:23:51. > :23:55.involved in a James Bond style experience. That will be popular.

:23:56. > :23:58.You have got to avoid the drones delivering your goods! There is a

:23:59. > :24:03.lot of crowded airspace at the moment over major cities. And this

:24:04. > :24:09.tweet says, I would like a smartphone with the battery power I

:24:10. > :24:16.require. And have we mentioned Vince? Yes. Marina, teleporting?

:24:17. > :24:22.Yes, but only for me and the people I like, she says! Obviously a time

:24:23. > :24:27.machine would be great. Imagine the money you could make. That is

:24:28. > :24:32.insider trading! If we all knew the numbers for the lottery in a couple

:24:33. > :24:41.of days' time, we would get a lion! I word! Lovely. In a Financial

:24:42. > :24:45.Times, Uber is offering free rides to solve parking crises in US towns.

:24:46. > :24:50.This is called the last mile. Everybody gets off the train that

:24:51. > :24:57.comes into the city and then jumps in a taxi, so like park and ride.

:24:58. > :25:02.The jet packs would solve that. Uber has this contract. It probably takes

:25:03. > :25:06.it out of conflict that it has had with cities around the world. An

:25:07. > :25:09.interesting development for Uber. Fascinating to see if they can

:25:10. > :25:14.replicated around the world. And whether the private taxi companies

:25:15. > :25:22.will start pitching for local authority contracts. You are a man

:25:23. > :25:26.of many talents. Beyond investing, you are heavily involved in thinking

:25:27. > :25:34.and talking about football. This story caught our attention as well.

:25:35. > :25:40.Yes, this is in the Metro. Two of Arsenal's star players are demanding

:25:41. > :25:46.?250,000 a week contracts. Where will it end? It is going up and up.

:25:47. > :25:51.If I was there aged, I would say they are underpricing themselves.

:25:52. > :25:54.Paul Pogba at Manchester United is reputedly on ?395,000 a week. There

:25:55. > :25:59.is a lot of competition for European football to go to China and that is

:26:00. > :26:03.why prices are going up. I suspect they will get those contracts.

:26:04. > :26:11.Lawrence will teleport off somewhere else. We have got to go. That is

:26:12. > :26:14.Business Live. Hello once again. A cloudy sphere behind me and with

:26:15. > :26:16.good reason. That is one of the factors that will make the date feel

:26:17. > :26:17.for