02/11/2016 BBC Business Live


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This is Business Live from BBC News, with Ben Thompson and Sally Bundock.


The world's biggest online retailer gears up for "Singles Day".


Live from London, on Wednesday 2nd November.


Alibaba is expected to post a big rise in income.


But what about its plans for global expansion?


Markets in South Korea take a beating as the country's


corruption scandal forces out the finance minister


Our Asia business hub will bring us the latest.


They're super fit and super talented.


So how do you handle a global sporting superstar when they decide


We'll find out from one of the big bosses at a major sports agency.


And, as internet use on mobile phones overtakes desktop


computers for the first time, we want to know, have


you ditched the desktop and manage on mobile?


We start with news of a true titan of the business world, Alibaba.


The Chinese firm is the biggest e-commerce platform in the world,


so when it reports its latest results in a few hours,


it's going to attract a lot of attention.


This gives you a sense of its enormity.


Last year, transactions on Alibaba sites totalled some $462 billion.


That's more than eBay and Amazon combined.


The company became one of the globe's most-valuable tech


firms after raising $25 billion from its US stock-market launch.


Investors will be looking for news of its plans for global expansion.


Its mobile payment system Alipay is key to that,


with plans for it to be introduced in Europe, the US and Asia.


Alipay is also important for the company's moves to cash


in on a shift in how consumers shop, now increasingly doing


Ben Preston is a director at Orbis Investment Advisory and is with us.


The profits news is expected to be fairly robust, but many are asking


questions about the outlook. China is already a world leader in terms


of the proportion of goods that are bought and sold online and on


mobile, and in that market Alibaba are the biggest player, so they are


huge. Over 400 million customers, larger than the UK and US


populations combined. It has grown strongly, it becomes harder to


maintain the growth rate, and there is the element of competition. The


more money you make, the more you attract competitors. There is


home-grown competition, and from Amazon prime, who have just arrived


on the scene. Can Alibaba, because of first mover advantage, keep hold


of its market share? Amazon are still very small in China. Alibaba


has a huge advantage will stop we are not interested in what is


happening today, but in several years in the future. The scale that


you have today is imported, but what is critical is what you offer


customers. Some local competitors have come in with a slightly


different business model Emma and are growing faster than Alibaba.


Their payment system is on the agenda, enabling us to pay for


things on our mobile devices, that is important to any mobile retailer,


but talk about Alibaba's intentions outside mainland China, when will we


see us considering Alibaba in Europe as opposed to Amazon? They have this


ambition that 50% of their business will be outside China in the future.


That will be hard to do, because we already have our established


businesses. We often use Amazon and eBay, and it is hard to disrupt


customers with fake IDs to a particular marketplace. In the US it


is one of the most trusted brands when it comes to online shopping,


Amazon, but will it come to a point where it is about price wars and


going for the cheapest version's --? I don't think so, you need


accommodation of price, quality and service.


When the results come out, we will let you know how they are doing.


Tesla has written to shareholders ahead of a vote on its $2.6 billion


acquisition of solar-panel company SolarCity.


It needs to win their support for the deal despite reports of


Tesla says the takeover would provide a boost to profitability.


Investors are due to vote on the deal later this month.


Tesla's founder Elon Musk say he's confident the takeover


A leading think tank is warning inflation in the UK will quadruple


to about 4% in the second half of next year.


The National Institute for Economic and Social Research says the rise


in prices will "accelerate rapidly" during 2017 as the fall


in the value of sterling is passed on to consumers.


In September, the inflation rate rose to its highest level


We have been following the woes of Deutsche Bank. Shares in the Italian


bank falling 6% in early trade today, prompting an automatic


trading suspension. This after the withdrawal of the alternative rescue


plan for Italy's third largest lender.


A lot of concern about exposure to the Italian banking sector. That


bank is one of the Weakest Link in Italy. Real concern about the


outlook for that bank and the implications it may have for other


banks in Europe exposed to Italian banking.


It is all about bad debts and what it means for the wider economy.


Fast-moving developments in South Korea's corruption scandal


are having a real impact on the markets there.


Sharanjit is across this for us in Singapore.


Expert on what has happened and why this affects the market. The South


Korean currency and shares have fallen to their weakest level since


early July. That is as political boys inside and outside the country


made investors uneasy. The benchmark stock index closed down about 1.4%.


The currency touched a low of 1152 during the session. A lot of concern


around the scandal, South Korean prosecutors have accused a close


friend of the President of fraud. The woman is accused of siphoning


woman -- money from a fund that received millions of dollars in


donations from national firms. It is a political scandal that are


threatening to undermine the President. A new Prime Minister as


well as a Finance Minister have been named. The fourth time minister to


serve under the President, while it will be the fifth Finance Minister


in four years. The moves are not likely to result in any policy


changes, but there is a lot of uncertainty of how much longer the


president will remain in power. That is impacting the market sentiment,


and her approval ratings have sunk to single digits in the wake of the


allegations. We also see the tightening American presidential


race, which is also weighing on market sentiment and across Asia.


Joining us is Justin Urquhart-Stewart, co-founder


and director of Seven Investment Management.


We saw all markets in Asia sliding today following the fear factor on


Wall Street, and it is carrying on into Europe. Markets, or investors,


are running for safety. The nasty phrase, comp dump! But it puts a


frisson of nerves through. A bit like dealing with the referendum,


everybody knew which way you were going, but the risk is not that


side, it is the other side, and like with a referendum, the risk is that


if you voted to go, therefore the impact on sterling, exactly the same


with Donald Trump, so what will you do? The interesting thing about


Donald Trump, when we voted to leave the EU, sterling fell like a stone,


but that will not necessarily happen with the US dollar is Donald Trump


or to get the job. The US dollar is seen as a place of safety. One


currency would be affected, the Mexican peso, because one of the


issues was if Hillary Clinton gets in, the Mexican peso would recover


quickly. Down 2% today. Further pressure the, further dollar


strength, perversely. Federal Reserve data not expected to hit the


headlines, they want to keep a low profile. Everybody is getting into


trouble, making decisions at the moment! It will be next month. There


is a very good chance there will be a rate rise, because the American


economy is doing quite well. Jobs figures are quite good, growth


figures are quite good, the types of jobs are not quite so good. It is a


change. We'll be markets get nervous? They have known about it


for some time, but they will still get nervous, because it is a change


in that direction. We move into the cycle, rate start rising. How much


did you use your mobile device? It is fascinating how it is changing.


We have this argument about which one is being used. Now I think I use


my mobile and my tablet the most. It is fascinating. When you look at the


surface pro, which bridges the two, there has been a change. A lot of


offices doing that, you take your device with you, but when you get


in, you plug it in. The much loved tablet.


It never works! It drives us round the twist.


Shulman mentioned some viewer comments? Catherine says she merely


uses her laptop. She says the mobile screen is too small to see and hurt


her hands to type. Karen says a combination is best,


mobile for faster customer response, plus big screen for planned work.


Scott says, the phone is the only way when I am not at my desk, but I


prefer to use the desktop. It is about scale, there is only so long


you can stare at a tiny screen. Maybe that is a sign of me getting


older as well. They're full of ambition


and talent, but not always We'll talk to a leading sports agent


about how you handle a global You're with Business


Live from BBC News. We've had a trading update


from the British high street. Retailer Next has given detail


of its sales for October. Sales down nearly 6% in the third


quarter. What more do they have to say? Next has been struggling in the


third quarter, and it did expect it would be, because this time last


year the company was doing very well, but this year things have been


different, there has been the fall in the value of sterling, but also


unseasonably warm weather. No surprise there shareholders, the


share price has had a bit of a rough ride. A big fall after the


referendum, and back up, and then fell again. The problem is that the


high street stores are not doing well, sales are down nearly 6%.


Online, catalogues, a bit better, but the picture for the third


quarter has been fairly rough. For the year as a whole it is ecstatic


profits to be stable at about ?805 million, because it has been cutting


its costs. And we've had details on the latest


shop prices this morning, The price rise has not happened yet,


according to new figures. In the year to October shop prices fell by


1.7%, compared to last October. We remember Bob White gate, Unilever


raising its prices and Tesco protesting. The fall in the value of


sterling has not that through jet. Many retailers have hedged against


it, they have taken out insurance against a falling sterling, but


those contracts will expire soon and the British Retail Consortium says


it is inevitable that higher prices will follow next year.


Lots of earnings on our page. I have highlighted this one. Tim Martin has


been a guest on our programme if you times, the chairman of Wetherspoon


's, he was pro Brexit. Their sales have grown 3.5%, in the 13 weeks to


the end of October. The level of like-for-like sales growth slipping


to 2.3%. One thing we are keeping a close eye


on, the quarterly inflation report from the Bank of England, we will


look at that in detail tomorrow morning.


It's all eyes on the Chinese e-commerce giant Alibaba.


It reports its result later today, and investors will be looking


for more news on the company's plans for global expansion.


A quick look at how markets are faring.


Name the film that this line comes from.


It's Jerry Maguire, of course, the Tom Cruise movie about a sports


agent and his efforts to get the best deal for his client.


But away from the Hollywood portrayal, what's the sports-agency


Last year the global sports market revenue was $145.4 billion.


In the UK alone the business contributes over $24 billion


to the economy, and as an industry provides 450,000 jobs.


One of the major players in this market place is Wasserman,


a global sports agency that deals with everything


Their client list covers athletes from across football,


as well as rugby, basketball and baseball, to name a few.


They've negotiated deals totalling hundreds of millions of dollars


and represent brands as varied as Microsoft,


Lenah Ueltzen-Gabell knows the industry from both


She rose to fame as a world beating equestrian star -


and now is one of the big bosses at Wasserman.


And York area of expertise is Europe, the Middle East and Africa.


And there is a big event happening today? Yes, we are proud to work


closely with the Abu Dhabi sports Council to bring the ladies open to


the Middle East and to Abu Dhabi. It is the first ladies sporting event


ever in that region and we are so proud to bring that to life. When


you say bring it to life, what do you actually need to do to make that


happen? There is so much going into it, take a wedding and times it by


ten is probably the best thing to think about, between the organisers,


the talent, the sponsors and then taking something so momentous for


women in this industry, which is still an area where we need to do a


bit of work. It is just managing a lot of different things. You were an


equestrian sporting star moving into this side of the business. Talk us


through that transition. Presumably your experience as a sportswoman is


extremely helpful? You understand both sides of the story. Yes, I


guess I started in this industry has the talent and now I've switched


over to the business side. I think I had my first client at 13 when I was


competing. And now it really helps understand young kids as they enter


into this environment, and understand the sponsors, the money


and all the different pieces that kind of have to play together. Give


us an idea of how that relationship works. If you have a young fledgling


sports star who you have spotted potential in, they could go far,


very good at what they do, how do you start that relationship with


sponsors Westmont do sponsors want something for their money? It's not


just about exposure, so how do you manage it? Very carefully, but it's


really about education on both sides of the fence. I think when you bring


sports stars into this environment there is a lot of money and pressure


but at the end of the day it is about the sport they love. It is


about keeping them focused. Looking towards the brands, they get into


this for the Passion of the sport and the excitement around it. So you


can't have them polluting the game as well. You have to think of the


fine balance of educating both sides on what they are buying into and


what they could potentially get out of this, so that they have


understanding and respect for each other. What happens on the flip side


if things do not go according to plan? A number of sports stars have


fallen from grace. How do you manage the downward spiral rather than the


rise to fame? I think it is crisis management on both sides. Looking to


any other sponsorships and partnerships, they don't always go


as planned, so you always need a back-up plan. I think it comes down


to education. It's about having people understand the consequences


for the decisions they make and also showing them and having that sort of


built in attitude. How do you measure and protect your talent?


Especially in sports some of them are extremely young. And it's just


an incredible swift move to global fame, isn't it? If you are extremely


talented and rise to fame quickly it must be hard to manage that. It is.


But if you go back to why they are famous, right? It's about the


performance on the pitch and you never want to impact that, right?


You have to stay very focused on that. If you are not able to perform


on the pitch it goes away. If you can keep them focused, keep a good


surrounding an education, a smart client, whether they are a talent, a


brand or a property, they understand the consequences of what we are


dealing with. We talked primarily here about the sports stars


themselves, and you talked about putting on this event in Abu Dhabi,


do you have to approach that very different he? I suppose when you are


dealing with individuals it is eager management to a certain extent,


shall we say? But when it comes to event it is about profile and I


guess in the case of Abu Dhabi putting it on the map in terms of


sport. It is all about brands, whether you are a talent, a


blue-chip brand, that is your brand. And you are both brands sitting here


in front of us. It's about managing those brands and asking them what


they want to be, what are we trying to portray to the world, really


working closely with the Abu Dhabi sports Council, really working


closely with the that we have worked with here, the brands we have worked


with. What are you trying to achieve? I call it the mirror test,


and that helps the talent well. What are these guys trying to achieve?


Who do they want to be when they grow up? I think it is quite another


dealing with a brand that has its own PR team, or working with your


own talent or a venue or a country. Interesting. Thanks for coming in.


Very interesting. I still think we go through that thing of what I want


to be when I grow up. A Blue Peter presenter. How did that happen?


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


We have loads of comments coming in about mobile devices against


desktop. You can stay ahead with all the days


breaking business news. We'll keep you up-to-date with all the latest


details with insight and analysis from the BBC team of editors right


around the world. And we want to hear from you, too. Get involved on


the BBC business life web page. And you can find us on twitter and


Facebook. Business Live on TV and whenever online, you need to know.


Joining us is Justin Urquhart-Stewart, Co-Founder


Director of Seven Investment Management.


Nice to see you again. We are going to talk about this story in the


Telegraph, mobile web usage overtaking desktop for the first


time. All of us walking around staring at our phones, not sat at


desks using traditional computers. We spoke earlier about whether you


were a convert. People now shopping, surfing, doing everything on the


move rather than being tied to a desk. You see people walking down


Regent Street, their phone is attached to their head. Sometimes


you see them moving it around so they can then see the screen, then


putting it back to their head again. It has just fundamentally changed.


It's not so much the phone, it's seeing how much growth there is in


the tablet side of things. The issue with the screen has aways been the


construction, you cannot just look at the little screen the entire


time, you'll get boss eyed. That screen gets a little larger, then


you have all those things you have on your desktop capable of going on


to the pad, life then suddenly changes. I remember our team in


Singapore did a piece, I can't member which city it was, but a city


in China, where they have mobile aims. So you know you have a cycle


lane, the pavement, the road. The amount of times I have almost bumped


into somebody not looking where they are going. The most dangerous person


in London is a young lady armed with a hot cup of coffee and a phone. Why


does it have to be a young lady? Because men can only do one thing at


once. Julie says she only uses her so or tablet for browsing. Luke is


not a convert, he says he has and always will use the desktop for


browsing, it is much easier than having to use your phone. Chase says


I ditched my desktop PC for my mobile, I can't carry my desktop in


my pocket. Indeed. Let's look at some other stories with Justin. The


highest-paid jobs of 2016 have been revealed. Ayew on the list, just in?


Luckily they don't have the names. Who's doing what and being paid


what? Not unsurprisingly, Chief Executive and senior officials,


they've put that at ?85,000, which compared with Sir Martin Sorrell, I


would think is a day 's pay. Aircraft pilots and flight engineers


and air traffic controllers are below that. These must be the legacy


carriers, I'm guessing? I would suppose so. I'm guessing if you are


on Ryanair or any of the other discounters, you will not be


well-paid. Number four is transport associate professionals, I have no


idea what they are. No idea. Legal professionals comes sixth, I'm not


surprised. I'm surprised it's so low actually. And brokers that. Broking


what? That covers all to multitude of sins. Financial directors at


number ten, that cannot be right, surely. Justin, what did you want to


be when you grew up? If you had an agent at the age of 13, where would


they have taken you? To Egypt, I wanted to be an archaeologist. You


are getting there. I've got to go back to my childhood, I've been told


to go and find a relic before they become what. You are going on dig


sand allsorts. Yes, economic archaeology. Thank you for coming


in, always good to see you. Have a good day, goodbye.


For most of us a fine looking weather day with plenty of sunshine


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