06/10/2016 BBC Business Live


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This is Business Alive. A two face the economy, booming growth, and a


third of the world's poorest people, India looks for a way forward. That


is our top story on Thursday the 6th of October.


India playing host to the World Economic Forum. How can one of the


world's fastest economies tackle poverty at home? Also mobile wars.


Samsung takes on an artificial intelligence pioneer, and the maker


of Apple's Siri. Deutsche Bank shares doing well this morning, up


2.5%. We will hear from the Nigerian e-commerce firm taking on the giants


of the tech world. Jet packs may be about to go on sale to the public


next year. Certainly the case in the UK. What kind of sci-fi invention


would you like to see developed? Use the hashtag.


Welcome to Business Alive. In India business and political leaders are


gathering for a summit of the World Economic Forum. India amongst the


world's fastest growing economies. Rising asperity helping to reduce


global poverty levels. Still serious problems. The World Bank defines


extreme poverty than living on less than $1 90 day. About 760 million


people in 2013. Although that is 100 million fewer than the previous


year. Part of a longer term trend. The number of people living in


extreme poverty has fallen by 1.1 billion since 1990, despite growth


in the world's population. Down to a strong income group in Asia,


particularly China, but India as well. Around half of the world's


poorest live in sub-Saharan Africa. 224 million of the poorest people in


the world, one in three still live in India. By far the country with


the most poor people. Let's go live to the World Economic Forum, under


way in Delhi. You have been talking to many of those attending this


event, with various views on how to tackle this challenge. Tell us more.


Like you said, a big challenge that India faces. Growth has been steady


for the last couple of years, and predicted to be strong this year,


and the next year. There is a huge growing divide between those who


have and have not. A challenge to make sure there are enough jobs for


the millions coming into the job market, lifting them out of poverty.


They have do attract more foreign companies to invest. They have been


talking about infrastructure. I have a businessman, can I ask you,


infrastructure, India needs about $1 trillion of investment, is that


happening? We need about $1 trillion, any next five years, after


that a couple more. Some of it is happening. A lot more can happen, in


terms of getting better investment off the ground. The big challenges,


when foreign companies talk about investing. What sectors? India needs


investment in all areas. We need across all sectors. Most of it is


focused on the roads. It has developed the most over the last few


years. Especially the actions in the last 24 months, a lot more interest


in the roads. Especially on Brownfield sites. A lot of insurance


funds, investment funds seeking to take positions on these assets. One


of the big challenges, the build-out, still fairly significant.


Most global companies are not really in the mood, they don't have the


appetite to take on these, roads, power, ports. Is it fear because of


the timing it takes to pass these various orders can getting land


rights? Environmental clearances? These are huge projects, getting


them off the ground could take years in India? It is a very endemic


challenge, for infrastructure in most parts of the world. Tough to


get clearance, right away. Tough to get them going, probably more than


in many other countries. Having said that, in a number of sectors we have


seen progress, power. The policy is very clear around linkage. The next


big step would be to start seeing these minds starting to produce.


Once we see steps like that, the appetite for foreign investors,


financing and operating, it will be a lot more. As you heard India needs


more than $1 trillion of investment in the next five years in


infrastructure. Offering a lot of opportunities for foreign companies,


getting them here and attract them will be in the's big challenge.


Thanks, good to see you, interesting what is happening at the World


Economic Forum in Delhi. A lock disgust. Some of the other


news. Shares of Twitter slumped almost 10


per cent late on Wednesday on a report that Google is not


going ahead with a takeover bid. The report on tech news website


Recode also claims Apple is unlikely to be a buyer for the struggling


social media firm. Twitter has told potential buyers it


wants to wrap up sale negotiations by the time it reports third quarter


earnings on October 27th - according to Reuters -


which reports that Salesforce.com and Walt Disney are


also in the running. The Walt Disney company has told


Bloomberg News visitor numbers to its new theme park in Shanghai


have "exceeded our expectations". That's despite reports


in the South China Morning Post that attendance levels are about half


what analysts had estimated. Guests have complained about high


ticket prices and long waits for rides -


according to the newspaper. The park opened in June at a cost


of 5.5 billion dollars. Our tablet is not working this


morning. Always best to confess. When we get it working, we will


follow on some other stories. Samsung has stepped up its focus


on artificial intelligence by taking over Viv, a digital assistant


developed by the maker The acquisition comes


just days after Google launched its new pixel phone


which also puts a strong focus on an AI digital


assistance function. This is an interesting thing? A lots


of different companies looking to do this at the moment? Are exactly


right. The new technology everyone is talking about, everyone wants to


be part of. Samsun, the South Korean company making a big leap into the


world of artificial intelligence by buying Viv, who founded Siri, which


they sold to Apple in 2010. This is supposed to be a more powerful


version of Siri, which Samsung say they will use in their devices. The


aim of the company is to provide additional assistance which breathes


life into inanimate objects. We will see what that is like in practice.


One of Samsun's upgraded phones exploding again? What is going on?


Right after recalling 2.5 million of the Galaxy Note handsets, one of


those announced that was safe, reportedly started smoking on a


plane in the US on Wednesday. The plane was evacuated before take-off,


Samsun saying they are investigating the incident. It will mark an


embarrassing, an expensive new development for the smartphone


maker. Stocks are a bit


stronger in Asian trade. In Japan the yen is weaker,


sending the Nikkei up as Japanese-made goods become


cheaper for the rest of the world. The stronger US dollar leaves


gold under pressure. The British pound flirted


near a three-decade low of $1.2686 touched on Wednesday on worries


about Britain's EU exit. Deutsche Bank shares have been


rising in European The German government is pursuing


discreet talks with US authorities to help Deutsche Bank


secure a swift settlement over the sale of toxic mortgage bonds,


according to sources in Berlin. The US Treasury Secretary will


discuss America's agenda for the upcoming International monetary fund


and World Bank meetings. We will get some insight into his views on the


state of the global economy. The Atlanta Federal reserve bank, the


president will hold a web cast to discuss how the bank will pick its


next president. They have formed a committee to conduct a nationwide


search to find a broad, highly diversified talent pool for the next


president. Weekly claims for state unemployment benefits are expected


to have gone up. What does this mean for the overall labour market? We


will see on Friday, when we get the latest jobs numbers, when they are


released. Joining us is Lawrence Gosling,


editor-in-chief of Investment Week. Lovely to see you. So much coming


on, companies, twitter, Samsung, easyJet, a profit warning. Classic


post-Brexit, listed company. We're still using it to fly a lot. It has


the problem of the oil price. Biggest input costs. Then we have


the currencies, the weaker pound having an effect on their business.


We have Next on we will see inflation brought in on the back of


that. Other companies doing poorly, on the other side of the Atlantic.


Twitter struggling. The earnings update on the 27th of October. It


reminds us a bit of Yahoo, desperate for the sale. Are they going to be


any kind of position to announce? Definitely not, if they don't have


one well down the line, you cannot successfully announce a deal in two


weeks' time. It looks desperate. They are struggling to monetise the


way people use it. Why would you want to buy Twitter? If you were


Walt Disney or Apple? You were buying more data, more connection


with customers. For Disney, you can get that distribution of potential


content. I am slightly worried, sales force is a more


business kind of kit, does not necessarily link with Twitter. We


will leave it there. We were told later about many things, including


the jet pack. We want you to get in touch about that. Jet packs


available in one year's time. What sci-fi invention would you like to


play with? Keep those inventions coming in. We have quite a number,


some real corkers. What does it take to beat


Amazon at its own game? We'll meet the boss of the Nigerian


e-commerce firm giving the tech You're with Business


Live from BBC News. And we're looking at the effects of


globalisation across the BBC today. Our reporter Steph McGovern


is in her home town today, on Teesside, to see how global trade


has impacted the people This is a report on Teesside, we


have containers going out and coming in. Fairly small in terms of what


they are dealing with. Normally ships were about 1000 containers


bringing all manner of things into the UK. Anything from timber,


furniture, maybe some of your Christmas presents amongst the


containers. We are here to talk about global trade. A big meeting


happening in America, talking about what impact global trade has had on


economies. The good and the bad. The likes of the World Bank and the IMF


meeting to discuss this. For an area like this, which is importing and


exporting products, it can be good and bad for them. We have seen the


likes of the steel industry in my home town Middlesbrough, we have


seen the demise, originally built here, the great heritage of


steel-making. Hit hard because of the Chinese able to make it cheaper.


On the other hand, other businesses on the Digital economy,


petrochemicals. We have the touchy rail plan. -- Hitachi rail plant.


Interestingly, our business presenter on Radio 4 has been in


Sunderland today. A lot of detail on the Business Live page. There is a


Nissan plant there, a lot of worry about Brexit. The boss talking about


investment, perhaps put on hold because of the negotiations. He told


workers he plans to spend 1 million a week on the local economy. Concern


from Sunderland Council whether that will happen. This is Business Live.


The top story today: India is playing host to the World Economic


Forum but can one of the leading economies in the world tackle the


high levels of poverty at home. We can get the latest from Delhi on our


Twitter feed. Now the European markets. A mixed picture emerging.


EasyJet shares were down over 8% today. Really struggling. This is a


warning that profits will be much lower, down a third from where they


thought they would be. Lots of different issues affecting that


company, including terrorist attacks, but also the value of oil


has been rising and there has been a real weakness in sterling as well.


One tweet I saw today was looking at the pound and parity with the Euro.


Could we get to that point soon? Very interesting. There is a five


year low against the Euro now which we will keep an eye on.


Say the phrase tech Titan and most people think of Silicon Valley


in the US or possibly even Shenzhen in China.


One company that's aiming to challenge that duopoly is Konga,


The company describes itself as the country's largest online


mall and caters to over a million customers.


In total the company has over 30,000 small businesses selling


on its website and operates something called KongaPay,


its own online payment system for all transactions on the site.


So far they've received over $80 million in investment


and they now have their sights set on growing the business


A little earlier my colleague Ben Bland spoke to Shola Adekoya,


the CEO of Konga, and began by asking him to tell us a bit


Konga is an e-commerce company based in Nigeria.


The platform service was first-party retail and then a marketplace,


a marketplace of over 60,000 SMEs trading on a platform


We do logistics, we do payment, and we have a company


How do you compete against the giants like Amazon and eBay?


EBay and Amazon have absolutely no direct presence in Nigeria.


You can buy and they ship it to Nigeria.


I guess one of our strengths when you compare us to them


We can deliver quicker than they can.


We had teething challenges getting the logistics right.


But where we are today, we are a lot faster in delivering


So if someone ordered something on one side of Nigeria for delivery


to the other, how quickly could you make that happen?


An average of five days across Nigeria.


And this is one of the fantastic things about the network


In the past we were looking at anything between


Today people are getting it in five days, in three days,


literally from the very end of Nigeria.


Now we are beginning to see in Lagos and Abuja, the big cities,


Where are you finding the traffic is coming from?


75% of transaction traffic is mobile.


But in this there are some very interesting behaviours.


People are still very sensitive to the data consumption.


So you find that people browse, add to cart, and then maybe


when they get a chance on a desktop, look at those items


that they are interested in, see all the details,


You find people moving between phones and desktop.


Did you find people were reluctant to move away from cash


I guess for payments, people put in their card details


online, so first of all you had to get through the barrier of people


There has been a lot of fraud in the past.


But even though that had been fixed, people had issues putting


What we have had to do is work on KongaPay,


taking cards and working with MasterCard and a few other


such that we give customers comfort around their payment.


And then payments move from a world of six clicks down


What were the challenges you were trying to face


when you tried to create an online payment system?


Well, the biggest challenge was convincing


Convincing them that we are not after your customer.


Our main aim is to ensure that payment happens seamlessly


on our platform, that customers have a fantastic experience shopping


and being able to prepay for their products.


That was the chief executive of Konga talking to Ben Bland. We have


been asking you what you would like to see being made into reality


because there is a story in the Telegraph about jet packs being


brought into the UK as of next year. These other tweaks we have got


coming in. Very popular our transporters and teleporting, from


Chris, Steve, Gary and marina. They want the Star Trek transporter,


which is very specific! You have got to be specific! And Vince says a


replicator because then you can have whatever you want in any quantity


whenever you want. To me that sounds dangerous. Extremely dangerous. The


editor in chief of Investment Weekly is waiting patiently. I would like


to have hindsight because so many people in the markets say they would


have done something else with hindsight. Particularly since 2008.


So you don't fancy one of these? We have a video of how the jet packs


work. Finally enough, I would, because just getting from Canary


Wharf to the West End or even the City, in minutes, in seconds


potentially, and 60 kilometres per hour. These are the ones where they


are attached. I have seen these already on the Thames. Going over


the Thames. This new one at the Telegraph is talking about, there is


no attachment whatsoever. They are looking for more money at the moment


to make this mass market. They are saying they could get the public


involved in a James Bond style experience. That will be popular.


You have got to avoid the drones delivering your goods! There is a


lot of crowded airspace at the moment over major cities. And this


tweet says, I would like a smartphone with the battery power I


require. And have we mentioned Vince? Yes. Marina, teleporting?


Yes, but only for me and the people I like, she says! Obviously a time


machine would be great. Imagine the money you could make. That is


insider trading! If we all knew the numbers for the lottery in a couple


of days' time, we would get a lion! I word! Lovely. In a Financial


Times, Uber is offering free rides to solve parking crises in US towns.


This is called the last mile. Everybody gets off the train that


comes into the city and then jumps in a taxi, so like park and ride.


The jet packs would solve that. Uber has this contract. It probably takes


it out of conflict that it has had with cities around the world. An


interesting development for Uber. Fascinating to see if they can


replicated around the world. And whether the private taxi companies


will start pitching for local authority contracts. You are a man


of many talents. Beyond investing, you are heavily involved in thinking


and talking about football. This story caught our attention as well.


Yes, this is in the Metro. Two of Arsenal's star players are demanding


?250,000 a week contracts. Where will it end? It is going up and up.


If I was there aged, I would say they are underpricing themselves.


Paul Pogba at Manchester United is reputedly on ?395,000 a week. There


is a lot of competition for European football to go to China and that is


why prices are going up. I suspect they will get those contracts.


Lawrence will teleport off somewhere else. We have got to go. That is


Business Live. Hello once again. A cloudy sphere behind me and with


good reason. That is one of the factors that will make the date feel




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