:00:00. > :00:00.This is Business Live from BBC News, with Ben Thompson and Sally Bundock.
:00:07. > :00:10.The world's biggest online retailer gears up for "Singles Day".
:00:11. > :00:32.Live from London, on Wednesday 2nd November.
:00:33. > :00:35.Alibaba is expected to post a big rise in income.
:00:36. > :00:38.But what about its plans for global expansion?
:00:39. > :00:45.Markets in South Korea take a beating as the country's
:00:46. > :00:48.corruption scandal forces out the finance minister
:00:49. > :00:58.Our Asia business hub will bring us the latest.
:00:59. > :01:00.They're super fit and super talented.
:01:01. > :01:04.So how do you handle a global sporting superstar when they decide
:01:05. > :01:11.We'll find out from one of the big bosses at a major sports agency.
:01:12. > :01:15.And, as internet use on mobile phones overtakes desktop
:01:16. > :01:18.computers for the first time, we want to know, have
:01:19. > :01:22.you ditched the desktop and manage on mobile?
:01:23. > :01:42.We start with news of a true titan of the business world, Alibaba.
:01:43. > :01:46.The Chinese firm is the biggest e-commerce platform in the world,
:01:47. > :01:49.so when it reports its latest results in a few hours,
:01:50. > :01:51.it's going to attract a lot of attention.
:01:52. > :01:53.This gives you a sense of its enormity.
:01:54. > :01:59.Last year, transactions on Alibaba sites totalled some $462 billion.
:02:00. > :02:02.That's more than eBay and Amazon combined.
:02:03. > :02:05.The company became one of the globe's most-valuable tech
:02:06. > :02:11.firms after raising $25 billion from its US stock-market launch.
:02:12. > :02:15.Investors will be looking for news of its plans for global expansion.
:02:16. > :02:18.Its mobile payment system Alipay is key to that,
:02:19. > :02:23.with plans for it to be introduced in Europe, the US and Asia.
:02:24. > :02:26.Alipay is also important for the company's moves to cash
:02:27. > :02:29.in on a shift in how consumers shop, now increasingly doing
:02:30. > :02:48.Ben Preston is a director at Orbis Investment Advisory and is with us.
:02:49. > :02:56.The profits news is expected to be fairly robust, but many are asking
:02:57. > :03:00.questions about the outlook. China is already a world leader in terms
:03:01. > :03:05.of the proportion of goods that are bought and sold online and on
:03:06. > :03:10.mobile, and in that market Alibaba are the biggest player, so they are
:03:11. > :03:15.huge. Over 400 million customers, larger than the UK and US
:03:16. > :03:18.populations combined. It has grown strongly, it becomes harder to
:03:19. > :03:23.maintain the growth rate, and there is the element of competition. The
:03:24. > :03:28.more money you make, the more you attract competitors. There is
:03:29. > :03:34.home-grown competition, and from Amazon prime, who have just arrived
:03:35. > :03:38.on the scene. Can Alibaba, because of first mover advantage, keep hold
:03:39. > :03:44.of its market share? Amazon are still very small in China. Alibaba
:03:45. > :03:47.has a huge advantage will stop we are not interested in what is
:03:48. > :03:53.happening today, but in several years in the future. The scale that
:03:54. > :03:58.you have today is imported, but what is critical is what you offer
:03:59. > :04:01.customers. Some local competitors have come in with a slightly
:04:02. > :04:08.different business model Emma and are growing faster than Alibaba.
:04:09. > :04:12.Their payment system is on the agenda, enabling us to pay for
:04:13. > :04:16.things on our mobile devices, that is important to any mobile retailer,
:04:17. > :04:21.but talk about Alibaba's intentions outside mainland China, when will we
:04:22. > :04:26.see us considering Alibaba in Europe as opposed to Amazon? They have this
:04:27. > :04:31.ambition that 50% of their business will be outside China in the future.
:04:32. > :04:38.That will be hard to do, because we already have our established
:04:39. > :04:42.businesses. We often use Amazon and eBay, and it is hard to disrupt
:04:43. > :04:46.customers with fake IDs to a particular marketplace. In the US it
:04:47. > :04:51.is one of the most trusted brands when it comes to online shopping,
:04:52. > :04:58.Amazon, but will it come to a point where it is about price wars and
:04:59. > :05:01.going for the cheapest version's --? I don't think so, you need
:05:02. > :05:09.accommodation of price, quality and service.
:05:10. > :05:13.When the results come out, we will let you know how they are doing.
:05:14. > :05:17.Tesla has written to shareholders ahead of a vote on its $2.6 billion
:05:18. > :05:19.acquisition of solar-panel company SolarCity.
:05:20. > :05:22.It needs to win their support for the deal despite reports of
:05:23. > :05:27.Tesla says the takeover would provide a boost to profitability.
:05:28. > :05:30.Investors are due to vote on the deal later this month.
:05:31. > :05:34.Tesla's founder Elon Musk say he's confident the takeover
:05:35. > :05:39.A leading think tank is warning inflation in the UK will quadruple
:05:40. > :05:42.to about 4% in the second half of next year.
:05:43. > :05:45.The National Institute for Economic and Social Research says the rise
:05:46. > :05:49.in prices will "accelerate rapidly" during 2017 as the fall
:05:50. > :05:52.in the value of sterling is passed on to consumers.
:05:53. > :05:55.In September, the inflation rate rose to its highest level
:05:56. > :06:17.We have been following the woes of Deutsche Bank. Shares in the Italian
:06:18. > :06:22.bank falling 6% in early trade today, prompting an automatic
:06:23. > :06:24.trading suspension. This after the withdrawal of the alternative rescue
:06:25. > :06:29.plan for Italy's third largest lender.
:06:30. > :06:32.A lot of concern about exposure to the Italian banking sector. That
:06:33. > :06:38.bank is one of the Weakest Link in Italy. Real concern about the
:06:39. > :06:40.outlook for that bank and the implications it may have for other
:06:41. > :06:44.banks in Europe exposed to Italian banking.
:06:45. > :06:46.It is all about bad debts and what it means for the wider economy.
:06:47. > :06:48.Fast-moving developments in South Korea's corruption scandal
:06:49. > :06:50.are having a real impact on the markets there.
:06:51. > :06:57.Sharanjit is across this for us in Singapore.
:06:58. > :07:07.Expert on what has happened and why this affects the market. The South
:07:08. > :07:12.Korean currency and shares have fallen to their weakest level since
:07:13. > :07:15.early July. That is as political boys inside and outside the country
:07:16. > :07:23.made investors uneasy. The benchmark stock index closed down about 1.4%.
:07:24. > :07:30.The currency touched a low of 1152 during the session. A lot of concern
:07:31. > :07:35.around the scandal, South Korean prosecutors have accused a close
:07:36. > :07:40.friend of the President of fraud. The woman is accused of siphoning
:07:41. > :07:45.woman -- money from a fund that received millions of dollars in
:07:46. > :07:47.donations from national firms. It is a political scandal that are
:07:48. > :07:52.threatening to undermine the President. A new Prime Minister as
:07:53. > :08:00.well as a Finance Minister have been named. The fourth time minister to
:08:01. > :08:04.serve under the President, while it will be the fifth Finance Minister
:08:05. > :08:08.in four years. The moves are not likely to result in any policy
:08:09. > :08:11.changes, but there is a lot of uncertainty of how much longer the
:08:12. > :08:18.president will remain in power. That is impacting the market sentiment,
:08:19. > :08:21.and her approval ratings have sunk to single digits in the wake of the
:08:22. > :08:25.allegations. We also see the tightening American presidential
:08:26. > :08:33.race, which is also weighing on market sentiment and across Asia.
:08:34. > :08:35.Joining us is Justin Urquhart-Stewart, co-founder
:08:36. > :08:39.and director of Seven Investment Management.
:08:40. > :08:45.We saw all markets in Asia sliding today following the fear factor on
:08:46. > :08:53.Wall Street, and it is carrying on into Europe. Markets, or investors,
:08:54. > :09:01.are running for safety. The nasty phrase, comp dump! But it puts a
:09:02. > :09:05.frisson of nerves through. A bit like dealing with the referendum,
:09:06. > :09:09.everybody knew which way you were going, but the risk is not that
:09:10. > :09:16.side, it is the other side, and like with a referendum, the risk is that
:09:17. > :09:18.if you voted to go, therefore the impact on sterling, exactly the same
:09:19. > :09:24.with Donald Trump, so what will you do? The interesting thing about
:09:25. > :09:27.Donald Trump, when we voted to leave the EU, sterling fell like a stone,
:09:28. > :09:32.but that will not necessarily happen with the US dollar is Donald Trump
:09:33. > :09:37.or to get the job. The US dollar is seen as a place of safety. One
:09:38. > :09:42.currency would be affected, the Mexican peso, because one of the
:09:43. > :09:46.issues was if Hillary Clinton gets in, the Mexican peso would recover
:09:47. > :09:52.quickly. Down 2% today. Further pressure the, further dollar
:09:53. > :09:56.strength, perversely. Federal Reserve data not expected to hit the
:09:57. > :09:59.headlines, they want to keep a low profile. Everybody is getting into
:10:00. > :10:05.trouble, making decisions at the moment! It will be next month. There
:10:06. > :10:09.is a very good chance there will be a rate rise, because the American
:10:10. > :10:13.economy is doing quite well. Jobs figures are quite good, growth
:10:14. > :10:17.figures are quite good, the types of jobs are not quite so good. It is a
:10:18. > :10:22.change. We'll be markets get nervous? They have known about it
:10:23. > :10:27.for some time, but they will still get nervous, because it is a change
:10:28. > :10:32.in that direction. We move into the cycle, rate start rising. How much
:10:33. > :10:36.did you use your mobile device? It is fascinating how it is changing.
:10:37. > :10:46.We have this argument about which one is being used. Now I think I use
:10:47. > :10:51.my mobile and my tablet the most. It is fascinating. When you look at the
:10:52. > :10:56.surface pro, which bridges the two, there has been a change. A lot of
:10:57. > :10:59.offices doing that, you take your device with you, but when you get
:11:00. > :11:04.in, you plug it in. The much loved tablet.
:11:05. > :11:07.It never works! It drives us round the twist.
:11:08. > :11:14.Shulman mentioned some viewer comments? Catherine says she merely
:11:15. > :11:17.uses her laptop. She says the mobile screen is too small to see and hurt
:11:18. > :11:21.her hands to type. Karen says a combination is best,
:11:22. > :11:27.mobile for faster customer response, plus big screen for planned work.
:11:28. > :11:32.Scott says, the phone is the only way when I am not at my desk, but I
:11:33. > :11:36.prefer to use the desktop. It is about scale, there is only so long
:11:37. > :11:38.you can stare at a tiny screen. Maybe that is a sign of me getting
:11:39. > :11:39.older as well. They're full of ambition
:11:40. > :11:43.and talent, but not always We'll talk to a leading sports agent
:11:44. > :11:47.about how you handle a global You're with Business
:11:48. > :11:56.Live from BBC News. We've had a trading update
:11:57. > :12:02.from the British high street. Retailer Next has given detail
:12:03. > :12:15.of its sales for October. Sales down nearly 6% in the third
:12:16. > :12:21.quarter. What more do they have to say? Next has been struggling in the
:12:22. > :12:25.third quarter, and it did expect it would be, because this time last
:12:26. > :12:29.year the company was doing very well, but this year things have been
:12:30. > :12:33.different, there has been the fall in the value of sterling, but also
:12:34. > :12:37.unseasonably warm weather. No surprise there shareholders, the
:12:38. > :12:41.share price has had a bit of a rough ride. A big fall after the
:12:42. > :12:46.referendum, and back up, and then fell again. The problem is that the
:12:47. > :12:54.high street stores are not doing well, sales are down nearly 6%.
:12:55. > :12:58.Online, catalogues, a bit better, but the picture for the third
:12:59. > :13:03.quarter has been fairly rough. For the year as a whole it is ecstatic
:13:04. > :13:04.profits to be stable at about ?805 million, because it has been cutting
:13:05. > :13:06.its costs. And we've had details on the latest
:13:07. > :13:22.shop prices this morning, The price rise has not happened yet,
:13:23. > :13:27.according to new figures. In the year to October shop prices fell by
:13:28. > :13:36.1.7%, compared to last October. We remember Bob White gate, Unilever
:13:37. > :13:39.raising its prices and Tesco protesting. The fall in the value of
:13:40. > :13:44.sterling has not that through jet. Many retailers have hedged against
:13:45. > :13:48.it, they have taken out insurance against a falling sterling, but
:13:49. > :13:50.those contracts will expire soon and the British Retail Consortium says
:13:51. > :13:58.it is inevitable that higher prices will follow next year.
:13:59. > :14:06.Lots of earnings on our page. I have highlighted this one. Tim Martin has
:14:07. > :14:13.been a guest on our programme if you times, the chairman of Wetherspoon
:14:14. > :14:18.'s, he was pro Brexit. Their sales have grown 3.5%, in the 13 weeks to
:14:19. > :14:22.the end of October. The level of like-for-like sales growth slipping
:14:23. > :14:26.to 2.3%. One thing we are keeping a close eye
:14:27. > :14:30.on, the quarterly inflation report from the Bank of England, we will
:14:31. > :14:32.look at that in detail tomorrow morning.
:14:33. > :14:38.It's all eyes on the Chinese e-commerce giant Alibaba.
:14:39. > :14:40.It reports its result later today, and investors will be looking
:14:41. > :14:47.for more news on the company's plans for global expansion.
:14:48. > :15:07.A quick look at how markets are faring.
:15:08. > :15:09.Name the film that this line comes from.
:15:10. > :15:15.It's Jerry Maguire, of course, the Tom Cruise movie about a sports
:15:16. > :15:19.agent and his efforts to get the best deal for his client.
:15:20. > :15:22.But away from the Hollywood portrayal, what's the sports-agency
:15:23. > :15:35.Last year the global sports market revenue was $145.4 billion.
:15:36. > :15:38.In the UK alone the business contributes over $24 billion
:15:39. > :15:45.to the economy, and as an industry provides 450,000 jobs.
:15:46. > :15:47.One of the major players in this market place is Wasserman,
:15:48. > :15:49.a global sports agency that deals with everything
:15:50. > :15:53.Their client list covers athletes from across football,
:15:54. > :15:55.as well as rugby, basketball and baseball, to name a few.
:15:56. > :15:57.They've negotiated deals totalling hundreds of millions of dollars
:15:58. > :15:59.and represent brands as varied as Microsoft,
:16:00. > :16:11.Lenah Ueltzen-Gabell knows the industry from both
:16:12. > :16:15.She rose to fame as a world beating equestrian star -
:16:16. > :16:17.and now is one of the big bosses at Wasserman.
:16:18. > :16:32.And York area of expertise is Europe, the Middle East and Africa.
:16:33. > :16:37.And there is a big event happening today? Yes, we are proud to work
:16:38. > :16:45.closely with the Abu Dhabi sports Council to bring the ladies open to
:16:46. > :16:48.the Middle East and to Abu Dhabi. It is the first ladies sporting event
:16:49. > :16:52.ever in that region and we are so proud to bring that to life. When
:16:53. > :16:56.you say bring it to life, what do you actually need to do to make that
:16:57. > :17:00.happen? There is so much going into it, take a wedding and times it by
:17:01. > :17:06.ten is probably the best thing to think about, between the organisers,
:17:07. > :17:09.the talent, the sponsors and then taking something so momentous for
:17:10. > :17:16.women in this industry, which is still an area where we need to do a
:17:17. > :17:21.bit of work. It is just managing a lot of different things. You were an
:17:22. > :17:26.equestrian sporting star moving into this side of the business. Talk us
:17:27. > :17:29.through that transition. Presumably your experience as a sportswoman is
:17:30. > :17:34.extremely helpful? You understand both sides of the story. Yes, I
:17:35. > :17:38.guess I started in this industry has the talent and now I've switched
:17:39. > :17:44.over to the business side. I think I had my first client at 13 when I was
:17:45. > :17:48.competing. And now it really helps understand young kids as they enter
:17:49. > :17:51.into this environment, and understand the sponsors, the money
:17:52. > :17:54.and all the different pieces that kind of have to play together. Give
:17:55. > :17:59.us an idea of how that relationship works. If you have a young fledgling
:18:00. > :18:04.sports star who you have spotted potential in, they could go far,
:18:05. > :18:07.very good at what they do, how do you start that relationship with
:18:08. > :18:13.sponsors Westmont do sponsors want something for their money? It's not
:18:14. > :18:17.just about exposure, so how do you manage it? Very carefully, but it's
:18:18. > :18:21.really about education on both sides of the fence. I think when you bring
:18:22. > :18:24.sports stars into this environment there is a lot of money and pressure
:18:25. > :18:29.but at the end of the day it is about the sport they love. It is
:18:30. > :18:32.about keeping them focused. Looking towards the brands, they get into
:18:33. > :18:36.this for the Passion of the sport and the excitement around it. So you
:18:37. > :18:39.can't have them polluting the game as well. You have to think of the
:18:40. > :18:43.fine balance of educating both sides on what they are buying into and
:18:44. > :18:46.what they could potentially get out of this, so that they have
:18:47. > :18:56.understanding and respect for each other. What happens on the flip side
:18:57. > :18:59.if things do not go according to plan? A number of sports stars have
:19:00. > :19:02.fallen from grace. How do you manage the downward spiral rather than the
:19:03. > :19:04.rise to fame? I think it is crisis management on both sides. Looking to
:19:05. > :19:08.any other sponsorships and partnerships, they don't always go
:19:09. > :19:12.as planned, so you always need a back-up plan. I think it comes down
:19:13. > :19:15.to education. It's about having people understand the consequences
:19:16. > :19:21.for the decisions they make and also showing them and having that sort of
:19:22. > :19:25.built in attitude. How do you measure and protect your talent?
:19:26. > :19:34.Especially in sports some of them are extremely young. And it's just
:19:35. > :19:39.an incredible swift move to global fame, isn't it? If you are extremely
:19:40. > :19:44.talented and rise to fame quickly it must be hard to manage that. It is.
:19:45. > :19:47.But if you go back to why they are famous, right? It's about the
:19:48. > :19:51.performance on the pitch and you never want to impact that, right?
:19:52. > :19:56.You have to stay very focused on that. If you are not able to perform
:19:57. > :20:00.on the pitch it goes away. If you can keep them focused, keep a good
:20:01. > :20:05.surrounding an education, a smart client, whether they are a talent, a
:20:06. > :20:10.brand or a property, they understand the consequences of what we are
:20:11. > :20:14.dealing with. We talked primarily here about the sports stars
:20:15. > :20:17.themselves, and you talked about putting on this event in Abu Dhabi,
:20:18. > :20:21.do you have to approach that very different he? I suppose when you are
:20:22. > :20:26.dealing with individuals it is eager management to a certain extent,
:20:27. > :20:30.shall we say? But when it comes to event it is about profile and I
:20:31. > :20:33.guess in the case of Abu Dhabi putting it on the map in terms of
:20:34. > :20:40.sport. It is all about brands, whether you are a talent, a
:20:41. > :20:43.blue-chip brand, that is your brand. And you are both brands sitting here
:20:44. > :20:48.in front of us. It's about managing those brands and asking them what
:20:49. > :20:52.they want to be, what are we trying to portray to the world, really
:20:53. > :20:55.working closely with the Abu Dhabi sports Council, really working
:20:56. > :20:59.closely with the that we have worked with here, the brands we have worked
:21:00. > :21:04.with. What are you trying to achieve? I call it the mirror test,
:21:05. > :21:07.and that helps the talent well. What are these guys trying to achieve?
:21:08. > :21:11.Who do they want to be when they grow up? I think it is quite another
:21:12. > :21:16.dealing with a brand that has its own PR team, or working with your
:21:17. > :21:27.own talent or a venue or a country. Interesting. Thanks for coming in.
:21:28. > :21:31.Very interesting. I still think we go through that thing of what I want
:21:32. > :21:35.to be when I grow up. A Blue Peter presenter. How did that happen?
:21:36. > :21:39.In a moment we'll take a look through the Business Pages but first
:21:40. > :21:41.here's a quick reminder of how to get in touch with us.
:21:42. > :21:44.We have loads of comments coming in about mobile devices against
:21:45. > :21:51.desktop. You can stay ahead with all the days
:21:52. > :21:55.breaking business news. We'll keep you up-to-date with all the latest
:21:56. > :21:59.details with insight and analysis from the BBC team of editors right
:22:00. > :22:02.around the world. And we want to hear from you, too. Get involved on
:22:03. > :22:17.the BBC business life web page. And you can find us on twitter and
:22:18. > :22:19.Facebook. Business Live on TV and whenever online, you need to know.
:22:20. > :22:21.Joining us is Justin Urquhart-Stewart, Co-Founder
:22:22. > :22:23.Director of Seven Investment Management.
:22:24. > :22:30.Nice to see you again. We are going to talk about this story in the
:22:31. > :22:34.Telegraph, mobile web usage overtaking desktop for the first
:22:35. > :22:38.time. All of us walking around staring at our phones, not sat at
:22:39. > :22:43.desks using traditional computers. We spoke earlier about whether you
:22:44. > :22:46.were a convert. People now shopping, surfing, doing everything on the
:22:47. > :22:50.move rather than being tied to a desk. You see people walking down
:22:51. > :22:54.Regent Street, their phone is attached to their head. Sometimes
:22:55. > :22:59.you see them moving it around so they can then see the screen, then
:23:00. > :23:04.putting it back to their head again. It has just fundamentally changed.
:23:05. > :23:07.It's not so much the phone, it's seeing how much growth there is in
:23:08. > :23:10.the tablet side of things. The issue with the screen has aways been the
:23:11. > :23:15.construction, you cannot just look at the little screen the entire
:23:16. > :23:18.time, you'll get boss eyed. That screen gets a little larger, then
:23:19. > :23:21.you have all those things you have on your desktop capable of going on
:23:22. > :23:27.to the pad, life then suddenly changes. I remember our team in
:23:28. > :23:30.Singapore did a piece, I can't member which city it was, but a city
:23:31. > :23:36.in China, where they have mobile aims. So you know you have a cycle
:23:37. > :23:41.lane, the pavement, the road. The amount of times I have almost bumped
:23:42. > :23:47.into somebody not looking where they are going. The most dangerous person
:23:48. > :23:54.in London is a young lady armed with a hot cup of coffee and a phone. Why
:23:55. > :24:03.does it have to be a young lady? Because men can only do one thing at
:24:04. > :24:09.once. Julie says she only uses her so or tablet for browsing. Luke is
:24:10. > :24:12.not a convert, he says he has and always will use the desktop for
:24:13. > :24:18.browsing, it is much easier than having to use your phone. Chase says
:24:19. > :24:24.I ditched my desktop PC for my mobile, I can't carry my desktop in
:24:25. > :24:29.my pocket. Indeed. Let's look at some other stories with Justin. The
:24:30. > :24:34.highest-paid jobs of 2016 have been revealed. Ayew on the list, just in?
:24:35. > :24:39.Luckily they don't have the names. Who's doing what and being paid
:24:40. > :24:43.what? Not unsurprisingly, Chief Executive and senior officials,
:24:44. > :24:48.they've put that at ?85,000, which compared with Sir Martin Sorrell, I
:24:49. > :24:50.would think is a day 's pay. Aircraft pilots and flight engineers
:24:51. > :24:56.and air traffic controllers are below that. These must be the legacy
:24:57. > :25:00.carriers, I'm guessing? I would suppose so. I'm guessing if you are
:25:01. > :25:04.on Ryanair or any of the other discounters, you will not be
:25:05. > :25:11.well-paid. Number four is transport associate professionals, I have no
:25:12. > :25:16.idea what they are. No idea. Legal professionals comes sixth, I'm not
:25:17. > :25:25.surprised. I'm surprised it's so low actually. And brokers that. Broking
:25:26. > :25:28.what? That covers all to multitude of sins. Financial directors at
:25:29. > :25:33.number ten, that cannot be right, surely. Justin, what did you want to
:25:34. > :25:38.be when you grew up? If you had an agent at the age of 13, where would
:25:39. > :25:41.they have taken you? To Egypt, I wanted to be an archaeologist. You
:25:42. > :25:46.are getting there. I've got to go back to my childhood, I've been told
:25:47. > :25:52.to go and find a relic before they become what. You are going on dig
:25:53. > :25:59.sand allsorts. Yes, economic archaeology. Thank you for coming
:26:00. > :26:12.in, always good to see you. Have a good day, goodbye.
:26:13. > :26:13.For most of us a fine looking weather day with plenty of sunshine