:00:00. > :00:00.This is Business Live from BBC News with Sally Bundock
:00:07. > :00:11.Chinese authorities have detained at least 18 people employed
:00:12. > :00:14.by Australia's biggest casino company under suspicion
:00:15. > :00:18.Live from London, that is our focus today -
:00:19. > :00:38.Australian casino company Crown Resorts has confirmed that
:00:39. > :00:49.at least 18 of its staff have been detained by authorities in China.
:00:50. > :00:53.Also in the programme: a new report says Britain's economy faces
:00:54. > :00:55.a "prolonged period" of weaker growth as consumer spending slows
:00:56. > :01:11.And it is a brand-new trading week for Europe. So far, not so good. We
:01:12. > :01:16.will talk you through the winners and losers.
:01:17. > :01:20.And we'll be getting the inside track on advertising.
:01:21. > :01:23.The boss of MC Saatchi - one of the world's biggest agencies -
:01:24. > :01:26.will be here to talk Brexit, ad blockers and US politics.
:01:27. > :01:28.And later we're going to talk about Hedge funds -
:01:29. > :01:30.they are struggling and it's because of robots.
:01:31. > :01:33.Let us know who you'd back with your cash - humans or robots?
:01:34. > :01:57.When it comes to your money, cash or robots, who will make the right
:01:58. > :01:59.decisions? Do send in your thoughts. It is a packed programme. Let's get
:02:00. > :02:01.started. Shares in Australia's
:02:02. > :02:04.biggest casino company - Crown Resorts have fallen by more
:02:05. > :02:07.than 12% after it reported that at least 18 of its staff including
:02:08. > :02:10.a senior executive have been It's believed that the arrests
:02:11. > :02:15.could be linked to a move by China to go after foreign casinos that
:02:16. > :02:19.attempt attract Chinese citizens overseas to gamble -
:02:20. > :02:32.which is against the law But while gambling in China
:02:33. > :02:35.is illegal, many Chinese people participate in state-run lotteries
:02:36. > :02:37.and engage in legal gambling in the special administrative
:02:38. > :02:40.regions of Hong Kong and Macau. The Chinese government operates two
:02:41. > :02:42.lotteries: the China Sports Lottery The Chinese government does
:02:43. > :02:45.not legally consider Illegal gambling in China
:02:46. > :02:53.is still common, including unofficial lotteries,
:02:54. > :02:57.clandestine casinos, and betting in games such as mahjong
:02:58. > :03:17.and various card games. It sounds like a murky world and
:03:18. > :03:22.many arrested? That is right, Sally. It is a murky world because the
:03:23. > :03:26.Chinese love gambling, but the government is trying to restrict
:03:27. > :03:33.what is known as illicit money flows through casinos and lotteries. As
:03:34. > :03:38.you mentioned earlier, we are seeing a hit to Australia's crown resorts
:03:39. > :03:46.which are owned by the billionaire James Packer. Some employees had
:03:47. > :03:50.been detained in China. That includes three Australian nationals
:03:51. > :03:54.as well as the head of the international operations. This is
:03:55. > :03:58.the guy who brings the big spenders to the casinos as well as the
:03:59. > :04:06.resorts overseas. China's Foreign Ministry did confirm in a statement
:04:07. > :04:10.that it has detained some Australian nationals for suspected gambling
:04:11. > :04:13.crimes but we did not get any further details. We are seeing this
:04:14. > :04:17.crackdown on gambling because it is illegal on the mainland and they are
:04:18. > :04:23.also cracking down on companies who have an exclusive advertising to
:04:24. > :04:30.Chinese nationals to come to these casinos abroad. We have seen another
:04:31. > :04:35.Korean operator get into trouble over similar violations. It is
:04:36. > :04:39.called Paradise. Last year several employees were arrested as well. The
:04:40. > :04:44.BBC are looking into the story and managed to speak to the husband of
:04:45. > :04:48.one of the local Crown employees who was arrested. He said he has been
:04:49. > :04:54.dumbfounded by the move because his wife only does admin work. Thank you
:04:55. > :04:56.very much. Britain's economy faces a "prolonged
:04:57. > :04:58.period" of weaker growth as consumer spending slows and business curbs
:04:59. > :05:04.investment, according to a report. Although the EY Item Club think tank
:05:05. > :05:07.predicts the economy will grow 1.9% this year, it expects that
:05:08. > :05:09.performance to fizzle The economy's stability
:05:10. > :05:14.since June's Brexit vote Joining us is Martin Beck,
:05:15. > :05:31.Senior Economic Adviser to the EY It is all to do with the fall in the
:05:32. > :05:36.pound, I presume that is the one hard thing we can hold onto which we
:05:37. > :05:42.know has been a result of that Brexit vote? I think that is a fair
:05:43. > :05:45.point. The fall in the pound is pushing up import prices which will
:05:46. > :05:55.lead to a rise in prices for consumers. There is a positive, any
:05:56. > :05:59.UK company selling abroad in dollars is benefiting which is acting as a
:06:00. > :06:04.shock absorber to the economy. We really need to know what is in
:06:05. > :06:10.Philip Hammond's Autumn Statement, what the government does in terms of
:06:11. > :06:14.infrastructure spend is key? That is an important point. We assume no
:06:15. > :06:17.change in the forecast but there seems a reasonable chance the
:06:18. > :06:21.government will allow some sort of fiscal stimulus in the Autumn
:06:22. > :06:25.Statement. There has been a tendency in recent weeks to row back a bit on
:06:26. > :06:30.what might be in the Autumn Statement. The other thing we saw
:06:31. > :06:33.last week was guilty of ticking up. That basically means borrowing costs
:06:34. > :06:38.for the government are getting more expensive. We are also seeing that
:06:39. > :06:42.happening in the States as well. It will be harder for the government to
:06:43. > :06:49.finance these infrastructure projects? Let there in mind the
:06:50. > :06:53.increase is from a record low level. The government currently pays 1% a
:06:54. > :06:57.year on borrowing. But the more we spend on borrowing and below the
:06:58. > :07:02.pound it goes, the more expensive it will be for the government? That is
:07:03. > :07:06.a fair point but we are talking more expensive from a relative position
:07:07. > :07:14.which was very cheap. The government is still borrowing at a rate far
:07:15. > :07:17.lower than we have seen in most of the past century. Thank you for
:07:18. > :07:19.talking us through that. More on that story on our website. Let's
:07:20. > :07:23.talk about some other news now. China's president -
:07:24. > :07:24.President Xi Jinping - says the long-term prospects
:07:25. > :07:26.of the Brics countries - Brazil, Russia, India,
:07:27. > :07:28.China and South Africa - are still positive despite
:07:29. > :07:30.a precarious global economy. Though they are currently enduring
:07:31. > :07:32.slower economic growth, he has stressed that the potential
:07:33. > :07:35.and strength of the group A flight ban on Samsung's Galaxy
:07:36. > :07:42.Note 7 smartphone has been announced by more airlines after reports that
:07:43. > :07:46.some of the phones had caught fire. Carriers in Australia,
:07:47. > :07:49.Asia and Europe put the phone on a prohibited list over
:07:50. > :07:52.the weekend, which comes after the US banned
:07:53. > :07:54.the device last week. Samsung stopped making the phone
:07:55. > :08:13.last week following complaints We have talked little bit about the
:08:14. > :08:17.impact of Brexit, or we have had more organisations trying to predict
:08:18. > :08:23.what it means for the UK economy but this is a story in the Financial
:08:24. > :08:29.Times. It is a big story. The UK to pay up for city access to the single
:08:30. > :08:33.market. There is a theory that the government is going to have to pay
:08:34. > :08:40.if they want to keep that. It is an interesting story. Let's
:08:41. > :08:47.have a look at the financial markets now. Europe's main markets have not
:08:48. > :08:51.started well. We are seeing declines across the board.
:08:52. > :08:57.the details about what's ahead on Wall Street Today.
:08:58. > :09:09.Earnings continue on Monday, Bank of America is going to report. It will
:09:10. > :09:11.take questions about how it's banking and consumer incentives
:09:12. > :09:17.compared to Wells Fargo which is recovering from its own banking
:09:18. > :09:22.scandal. IBM will also be reporting on earnings. It has been focusing on
:09:23. > :09:27.building its cloud business that houses the company's artificial
:09:28. > :09:32.intelligence platform but it struggled to show meaningful revenue
:09:33. > :09:36.growth elsewhere. Finally, we will also hear from video streaming
:09:37. > :09:41.service Netflix. It has launched in almost every country around the
:09:42. > :09:46.world, but now it faces the task of adapting the service to different
:09:47. > :09:49.markets and cultures, in the face of increasing competition. Key for
:09:50. > :09:53.investors will be Netflix's subscription numbers for the Court.
:09:54. > :09:56.Joining us is Nick Hungerford who is the Chief Executive
:09:57. > :10:11.What has gone wrong? It is a bit of a pull-back. We have had a great run
:10:12. > :10:22.over the last month or so, hitting record highs in the FTSE. This is a
:10:23. > :10:24.reaction to two things. One is that sterling is strengthening a tiny
:10:25. > :10:27.bit. We know that story has rallied the markets. The second thing is we
:10:28. > :10:30.have a serious round of the gauche nations this year with Theresa May
:10:31. > :10:34.heading to Europe for discussions with her peers. People are concerned
:10:35. > :10:40.about how those negotiations will be and whether or not it will be a hard
:10:41. > :10:46.or a soft Brexit, whatever that may mean. What are you looking out for
:10:47. > :10:50.in the markets? The big market stories this week will be an results
:10:51. > :10:55.from America. We had Citigroup, JP Morgan and Wells Fargo last week. We
:10:56. > :11:01.have Bank of America and Wells Fargo this week. Can they maintain their
:11:02. > :11:05.good loans? And secondly, the vice chairman of the Federal Reserve will
:11:06. > :11:09.speak today. We had the chairman Janet yellow and and Bob Dudley
:11:10. > :11:14.speaking with some mixed messages so we are looking for clarity today.
:11:15. > :11:21.You talk about the Brexit negotiations being critical on the
:11:22. > :11:26.markets. What does a canny investor do in an environment like that? A
:11:27. > :11:29.canny investor it ignores all of that and says I invest in the
:11:30. > :11:33.markets for the long-term. I know things will go up and down but I
:11:34. > :11:36.will spread my risk and put my money in and I will not worry about
:11:37. > :11:45.whether these Brexit negotiations change from day to day. Should the
:11:46. > :11:47.canny investor have a robot investing on their behalf?! There is
:11:48. > :11:51.no emotion there. That is really interesting. It is a way to take the
:11:52. > :11:55.emotion out of it. If you think about your house you cannot see the
:11:56. > :11:59.price going up and down every day and isn't that a good thing because
:12:00. > :12:06.you leave it there? You can look on websites. Quickly, you must just
:12:07. > :12:09.check! Nick, good to see you and we will
:12:10. > :12:11.keep an eye out on what Stanley Fischer and co-have to say as the
:12:12. > :12:15.week progresses. Still to come: What role did
:12:16. > :12:18.advertising play in the run up We'll speak to one of
:12:19. > :12:22.the world's leading ad men. You're with Business Live from BBC
:12:23. > :12:23.News. A warning against a potential
:12:24. > :12:27.Brexit brain drain. A group representing nearly half
:12:28. > :12:30.a million engineers is calling on the government to take serious
:12:31. > :12:33.steps to keep integration with the European Union
:12:34. > :12:36.once the UK leaves. Engineering-related sectors
:12:37. > :12:41.contribute ?280 billion - that's $343 billion dollars -
:12:42. > :12:45.to Britain's economy. Last year the Royal Academy
:12:46. > :12:48.of Engineering warned the sector needed at least a million people
:12:49. > :12:51.by 2020 to keep everything Ryan Bourne, Head of
:12:52. > :12:55.Public Policy, Institute of Economic Affairs,
:12:56. > :13:08.joins us now. It all sounds like a stark warning,
:13:09. > :13:12.a crisis in the UK. Is this about Brexit or have we not been
:13:13. > :13:19.channelling young people into engineering for years? I think it is
:13:20. > :13:24.a bit of both. The report was a bit more nuanced than your introduction
:13:25. > :13:29.suggested. The Academy are quite keen to recognise the fact that
:13:30. > :13:33.being open to investment and being open to skilled engineers being able
:13:34. > :13:37.to come to the UK is a good thing, and of course, that might not
:13:38. > :13:41.necessarily change as a result of Brexit. I campaigned for us to leave
:13:42. > :13:45.the European Union, but I still want us to be open to foreign direct
:13:46. > :13:51.investment and want skilled engineers still to come here. It is
:13:52. > :13:54.the importance of openness rather than Brexit here. Do you think we
:13:55. > :13:58.will be able to hold onto the engineers we have got from the EU?
:13:59. > :14:03.The first thing I would like the government to do is to guarantee the
:14:04. > :14:06.rights of people working here, particularly in academia and other
:14:07. > :14:12.industries. That is something they could do. They could reduce the
:14:13. > :14:16.uncertainty over night. I think it is dangerous that some messengers --
:14:17. > :14:20.members of the government have been suggesting that using people's
:14:21. > :14:24.status here in the UK could be used as a negotiating chip in the
:14:25. > :14:30.negotiations. We could kill that uncertainty dead and maintain the
:14:31. > :14:34.best talent we have here, yes. Thank you for your time. Interesting
:14:35. > :14:43.developments. We have to quickly mention this story on Ladbrokes.
:14:44. > :14:48.They will sell 359 shops. It says Ladbrokes and coral have agreed to
:14:49. > :14:54.sell the shops to rival betting firms. Lots of information on that
:14:55. > :14:59.on our website. Our top story, Chinese authorities
:15:00. > :15:09.have detained at least 18 people employed by Australia's biggest
:15:10. > :15:10.casino company under A quick look at how
:15:11. > :15:26.markets are faring. Not particularly well. Down 0.5%. A
:15:27. > :15:30.lot to do with the slightly strengthening pound and worries
:15:31. > :15:35.about interest rates in the United States possibly going up. Various
:15:36. > :15:42.interpretations of Janet Yelland was saying in the United States.
:15:43. > :15:50.Are you a fan of Mad Men? Oh, I missed it. It is a very popular
:15:51. > :15:55.programme. It is about the global world of tiding and the individuals
:15:56. > :15:56.that work within it. We'll get the Inside Track with M
:15:57. > :16:00.Saatchi. The Saatchi name is synonymous
:16:01. > :16:02.with advertising thanks to two enterprising brothers,
:16:03. > :16:07.Maurice and Charles Saatchi. M Saatchi were founded in 1995
:16:08. > :16:10.and have become leaders They've got offices in 21
:16:11. > :16:14.countries and clients The most recent full-year
:16:15. > :16:20.revenues were $206 million, from clients including Ikea,
:16:21. > :16:31.Lexus, Carlsberg and Etihad. Moray MacLennan is the Worldwide
:16:32. > :16:42.Chief Executive of M Saatchi. Good to have you in the programme.
:16:43. > :16:46.Good morning. With we need Ing to mention, lots of clients and years
:16:47. > :16:51.and years of experience. A name most people heard of around the world.
:16:52. > :17:00.One of the most high-profile campaigns you ran recently was the
:17:01. > :17:03.Remain campaign for the Remain group which was cross-party, it was the
:17:04. > :17:08.Remain which was several parties, wasn't it, what happened? What
:17:09. > :17:11.happened was we and other people thought that normal rules would
:17:12. > :17:18.apply and they are that if people are going to be less well off they
:17:19. > :17:22.will vote for the other side. So we thought that the rational arguments
:17:23. > :17:28.were the best to put across, it is the economy stupid. Something else
:17:29. > :17:32.was going on and it is interesting because I think people weren't
:17:33. > :17:36.really voting for the EU. It was a rail against the establishment and
:17:37. > :17:39.that wasn't spotted and we know in marketing that's the first rule,
:17:40. > :17:44.understand the target audience and get the right insight and develop
:17:45. > :17:47.your message and we didn't. And it should have been a positive message
:17:48. > :17:51.first and fore most rather than trying to brow beat people. A fear
:17:52. > :17:56.message? A fear message and the establishment wants you to leave,
:17:57. > :18:00.everyone from the Pope to Obama saying you will be less well off and
:18:01. > :18:08.the electorate said, "No, you will be less well off." Apply that to
:18:09. > :18:12.America now? There are parallels. Huge parallels, the people who feel
:18:13. > :18:15.hard done by for the last 20 years, they are voting because of that. Not
:18:16. > :18:20.because they think that Trump has got the answer to everything? Yes,
:18:21. > :18:22.Hillary can go out with the rational messages, but we have seen that
:18:23. > :18:26.campaign. It is one of those campaigns it is difficult to learn
:18:27. > :18:30.too much from, it is so extraordinary and the Trump
:18:31. > :18:34.supporters aren't actually, even watching the debates at all. So
:18:35. > :18:40.again, it is as someone described, it is a scream in the dark a vote
:18:41. > :18:49.for Trump. You are involved, aren't you, as an agency? We are involved
:18:50. > :18:52.with Emily's List which promotes female politicians in the Democratic
:18:53. > :18:57.Party and it is a negative campaign. It is saying, "Can you seriously
:18:58. > :19:01.vote for this man?" The critical thing in that election is to get
:19:02. > :19:05.people out because in Brexit what happened was, 80% of the people who
:19:06. > :19:11.wanted to leave said they would vote and only 30% of those saying they
:19:12. > :19:15.would vote... If you're using a negative campaign, that sounds like
:19:16. > :19:19.you haven't learnt anything from the Brexit campaign, saying what are the
:19:20. > :19:24.good things about Hillary. You can learn too much. I wouldn't conflate
:19:25. > :19:30.the two things. In this instance, he is ten points behind now. So I think
:19:31. > :19:34.he's doing a lot of his own negative publicity. Moving on from politics
:19:35. > :19:39.and campaigns to the industry as a whole, I mean, it is shifting and
:19:40. > :19:44.changing so-so, rapidly and mobile devices are pushing that. To what
:19:45. > :19:49.extent are you able to be on top of all of the change? Largely in the
:19:50. > :19:52.short-term I think when you look ten years hence, it is difficult with
:19:53. > :19:59.virtual reality, where is that going to go? You need to be aware and not
:20:00. > :20:02.get ahead with yourself. With internet advertising half of the
:20:03. > :20:08.spend, mobile in the UK increased by over 50% in the last six months.
:20:09. > :20:13.Extraordinary growth. And because it is precise right message, right
:20:14. > :20:19.time, right person and measurable and all those things are important.
:20:20. > :20:21.What about ad blockers? It is up to 20% in terms of people blocking
:20:22. > :20:26.advertisements and I have said before it is a wake-up call and I
:20:27. > :20:28.think it is the global organisations, global advertisers,
:20:29. > :20:32.the coalition for better advertising they've formed in order to do basic
:20:33. > :20:35.things better because you can talk to someone doesn't mean that you
:20:36. > :20:38.should if you can interrupt their conversation online. So the usual
:20:39. > :20:41.rules apply in that you need to be engaging and relevant and
:20:42. > :20:46.entertaining and that stopped happening which is why it is being
:20:47. > :20:51.blocked and it is good to go back to basics and remember those things.
:20:52. > :20:55.With social media you're going for people, your existing customers,
:20:56. > :20:58.aren't you? You're not getting out, the way you're doing it, you're
:20:59. > :21:05.identifying who is buying your stuff and you're going back to them and
:21:06. > :21:10.saying, "Why don't you buy a chocolate cake instead of Marmite?"
:21:11. > :21:13.Right. And I think that's now been learnt by people, by certainly some
:21:14. > :21:18.of the big advertisers, I saw Procter and Gamble last week coming
:21:19. > :21:21.out in public saying they got it wrong through just going through
:21:22. > :21:27.measurable precision marketing because what you need is fame and
:21:28. > :21:31.relevance and to be talked about to emotionally engage, it is a
:21:32. > :21:35.readjustment, well, you have seen the figures of the internet and
:21:36. > :21:38.mobile, they are the dynamic media, but television is holding up well
:21:39. > :21:43.and it is getting the balance right that marketers now need to do.
:21:44. > :21:51.Moray MacLennan thank you very much. In a moment we'll take a look
:21:52. > :21:54.through the business pages but first here's a quick reminder of how
:21:55. > :22:00.to get in touch with us. The Business Live page is where you
:22:01. > :22:03.can stay ahead with all the day's breaking business news. We'll keep
:22:04. > :22:06.you up-to-date with all the latest details with insight and analysis
:22:07. > :22:11.from the BBC's team of editors right around the world. And we want to
:22:12. > :22:18.hear from you too. Get involved on the BBC Business Live web page at:
:22:19. > :22:24.And on Twitter we are at: And you can find us on Facebook.
:22:25. > :22:29.Business Live on TV and online whenever you need to know.
:22:30. > :22:31.Let's see what other stories are being talked
:22:32. > :22:47.Our business correspondent Dominic O'Connell is here.
:22:48. > :22:54.We asked our viewers to get in touch about robots. We had a good guest on
:22:55. > :22:59.the Today programme talking about hedge funds and why some big hedge
:23:00. > :23:04.funds lost their way. Martin Taylor have shut their doors saying that
:23:05. > :23:11.the trading environment has become too predictable. Predictable? Too
:23:12. > :23:14.unpredictable. There are too many computer traders who don't have
:23:15. > :23:18.natural human reaction. Human traders will be used to thinking if
:23:19. > :23:21.Marks Spencer's gets to a certain level of earnings, it is time to
:23:22. > :23:34.buy. The machines don't think like that. The machines do not have human
:23:35. > :23:38.reactions. It makes to a more volatile and unpredictable. The
:23:39. > :23:42.machines are starting to run the markets and the humans don't like it
:23:43. > :23:48.much. To what ex-at any time is what happening? 40% of all share trading
:23:49. > :23:52.is done by black box trading. The image of the 1980s stock exchange
:23:53. > :23:55.floor with the men in red braces shouting at telephones, it is a
:23:56. > :24:01.thing of the past. Does it change the direction of the market? Does it
:24:02. > :24:05.change the day-to-day volatility? Only for a few minutes, as long as
:24:06. > :24:09.you weren't on the wrong side. Five minutes later, we were back... If
:24:10. > :24:14.you look at share price of a company like ex--on, it was 95, it was $85
:24:15. > :24:21.when the oil price was double what it is, now it is $95 Y is that? It
:24:22. > :24:27.is because machines trade up that stock. All these things are driving
:24:28. > :24:35.against things what the humans think. The viewers are voting for
:24:36. > :24:41.humans. James says, "Humans every time. Humans have feelings. The
:24:42. > :24:48.greatest feeling to have on a trading floor is the gut instinct."
:24:49. > :24:53.Can I take you back to the great Tulip Crash and the boom in the.com
:24:54. > :24:57.boom which had nothing to do with machines, apart from people's
:24:58. > :25:01.interest in machines! Humans are just as easy to, just as capable of
:25:02. > :25:07.getting things wrong and badly wrong. The machines were doves. They
:25:08. > :25:13.could move faster than the humans could. It is technology disrupting
:25:14. > :25:16.markets, but volatility is the big thing. It makes things go faster and
:25:17. > :25:24.further. Let's talk about other stories. Wall Street Jurpl how
:25:25. > :25:28.Caterpillar's big bet backfired? Commodity prices were going to stay
:25:29. > :25:33.forever because China was eating so much of the stuff. The Chief
:25:34. > :25:36.Executive of Caterpillar bet big on this. Everybody knows the big mining
:25:37. > :25:43.trucks, he built factories over China and bought a big competitor in
:25:44. > :25:49.the States. The mining super cycle never came to pass. Prices fell and
:25:50. > :25:53.the Caterpillar share prices have fallen. They came back up to 90.
:25:54. > :25:58.Maybe there is a recovery in mining now. You need to be a human to work
:25:59. > :26:02.that one out! A human to finish the show on time. Dominic, thank you
:26:03. > :26:10.very much for coming in. We will see you tomorrow. Bye-bye.
:26:11. > :26:16.Hello there. Good morning. We start the new week with a sunshine and
:26:17. > :26:17.showers Monday. Quite a