:00:00. > :00:00.This is Business Live from BBC News with Aaron Heslehurst
:00:00. > :00:14.But, with the unstoppable rise of online shopping,
:00:15. > :00:17.is the annual retail rush, still such a big deal?
:00:18. > :00:19.Live from London, that's our top story on Friday
:00:20. > :00:40.In the US and UK billions will be spent today in what is likely to be
:00:41. > :00:51.the biggest shopping day of the year.
:00:52. > :00:52.Also in the programme, Iceland versus Iceland,
:00:53. > :00:55.the country takes on the UK supermarket chain in a trade mark
:00:56. > :00:57.battle over which should have rights to the name.
:00:58. > :01:09.And we'll be getting the inside track on the weeks
:01:10. > :01:10.biggest financial stories with our Business Editor,
:01:11. > :01:13.Simon Jack -- including governments' push for big spending
:01:14. > :01:20.Today we want to know will your Black Friday be
:01:21. > :01:30.Are you prepared to brave the crowds or is it couch surfing?
:01:31. > :01:52.Online, online. Lots going on, we have that Friday feeling.
:01:53. > :01:55.We are talking retail, because depending on where you live
:01:56. > :01:58.in the world you have probably been bombarded with adverts and emails
:01:59. > :01:59.offering "massive discounts" and "unmissable deals".
:02:00. > :02:01.There's no escaping that today is not just Friday -
:02:02. > :02:12.In the US, it's the day after the Thanksgiving holiday,
:02:13. > :02:15.and it's traditionally marked the beginning of the Christmas
:02:16. > :02:21.So needless to say it's a huge day for retailers.
:02:22. > :02:23.Over 137 million Americans are expected to go in search
:02:24. > :02:32.That would be a million and a half more than last year.
:02:33. > :02:34.The big change though is the internet.
:02:35. > :02:36.As many Americans shopped online as actually went
:02:37. > :02:38.to stores last year - and online sales
:02:39. > :02:44.Expect that trend to continue this year.
:02:45. > :02:49.Here in the UK some 14 million people are expected to shop.
:02:50. > :02:57.But again many will be doing it in their pyjamas.
:02:58. > :03:02.What happens if you don't wear pyjamas? I didn't write that!
:03:03. > :03:04.According to one prediction - British shoppers are expected
:03:05. > :03:08.to spend over ?2 billion - but over a billion of that -
:03:09. > :03:14.Actual traffic on the high street may even be down.
:03:15. > :03:17.You of course would be doing it in your onesie.
:03:18. > :03:19.Ben Perkins, Head of Consumer Business Research,
:03:20. > :03:31.Running through the numbers, clearly millions will be shopping today,
:03:32. > :03:36.both sides of the Atlantic. But, how long will this last? There are sales
:03:37. > :03:39.all year long. Good question, what we have seen a significant
:03:40. > :03:43.year-on-year growth for the last two or three years. From a consumer
:03:44. > :03:48.loss of momentum. This will be the loss of momentum. This will be the
:03:49. > :03:53.biggest Black Friday yet within the UK. It will be the biggest shopping
:03:54. > :03:58.day of the year. For now, there seems to be some real momentum
:03:59. > :04:02.behind it. Not the same degree of users from retailers will stop their
:04:03. > :04:09.challenge is how they continue to capture the revenue growth without a
:04:10. > :04:15.destroying... It is a tough one, we're talking about sales. As
:04:16. > :04:20.consumers with painted, aren't we? Since the financial crisis we only
:04:21. > :04:24.buy when no bargains on. -- as consumers we are tainted. There
:04:25. > :04:28.always seems to be bargains but how sustainable is that the industry?
:04:29. > :04:34.You got right to the heart of the central challenge in retail.
:04:35. > :04:39.Postrecession we have become trained to buy on promotion. Even post
:04:40. > :04:44.recovery consumers are reluctant to leave this behaviour is behind. With
:04:45. > :04:48.the online phenomena, it would seem that more people are shopping online
:04:49. > :04:51.then on the high street when these events takes place. From retailers
:04:52. > :04:58.it is not just about the issue are trying to survive this, but also
:04:59. > :05:02.their website have to be extremely robust. Exactly, and this is one of
:05:03. > :05:07.the reasons why you seemed Black Friday moved from being Black Friday
:05:08. > :05:10.to Black Friday weekend, and Black Friday week, and now Black Friday
:05:11. > :05:18.fortnight. The reason is they plan to manage that peak in demand. So
:05:19. > :05:22.that their website and other things do not fall over. Ever since we
:05:23. > :05:29.started covering the single stay in China, I look at our Black Friday,
:05:30. > :05:36.and go that is nothing. In China, in the first hour of their singles day,
:05:37. > :05:41.only a one-day shop, the first hour was 5 billion. The first 30 seconds
:05:42. > :05:47.was something likeable in dollars. We are nothing compared to them.
:05:48. > :05:52.Lots of things are bigger and better in China, they? What is interesting
:05:53. > :05:56.if you look at it in the round, is retail is moving from being
:05:57. > :06:01.predictable to being disrupted by all of these new events that are
:06:02. > :06:06.emerging. At the same time, this year we've seen a Halloween has
:06:07. > :06:10.become bigger. These pose challenges to retailers that have become used
:06:11. > :06:17.to that particular cycle of buying and selling. Interesting. Thank you
:06:18. > :06:22.so much for coming in. Quite interesting, actually. Just say, you
:06:23. > :06:27.have been really on put on this story. Probably because you've been
:06:28. > :06:34.online shopping, maybe you have that television on. Ringo EU, not as real
:06:35. > :06:41.name, says not many bargains in Greece but he is just bought a new
:06:42. > :06:50.printer. -- rain though EU. Ben mentioned Halloween. At treat the
:06:51. > :06:53.retail not a trick. Former minister has accused
:06:54. > :06:58.the president of Brazil, Michel Temer, of pressuring him
:06:59. > :07:00.into using his powers to help another minister
:07:01. > :07:03.in a personal business matter. The Brazilian president has
:07:04. > :07:04.denied any wrongdoing, but the case is putting key figures
:07:05. > :07:10.in his government under suspicion. Plans to expand Heathrow Airport
:07:11. > :07:13.with a third runway are set to breach the UK government's
:07:14. > :07:15.climate change laws, The Committee on Climate Change says
:07:16. > :07:22.the business plan for Heathrow projects a 15% increase
:07:23. > :07:28.in aviation emissions by 2050. If that increase is allowed
:07:29. > :07:31.ministers will have to squeeze even deeper emissions cuts from other
:07:32. > :07:52.sectors of the economy. Meanwhile places like Istanbul,
:07:53. > :07:58.opening six runways. In China they build several runways.
:07:59. > :08:00.Japan's consumer prices fell in October for the eighth straight
:08:01. > :08:03.month giving the world's third largest economy no sign of winning
:08:04. > :08:15.We're talking about the world's third biggest economy. No sign of
:08:16. > :08:24.winning the battle against inflation. Sharon is in Singapore
:08:25. > :08:30.follows and summed up the issues facing the economy. It is either
:08:31. > :08:34.prices falling in September. No dig surprise there. But what is
:08:35. > :08:38.interesting about these numbers is that this is the eighth straight
:08:39. > :08:43.string of falls in five years. It string of falls in five years. It
:08:44. > :08:51.essentially showed that core prices, including fresh food, bold about 5%.
:08:52. > :08:57.This data came several weeks after Japan's Central bank pushed back the
:08:58. > :09:03.timeline. We know that the central bank's target is a key part of the
:09:04. > :09:06.Prime Minister's bid to pump up the world's number to the economy. He is
:09:07. > :09:15.doing it to stimulus measures, printing money. The programme has
:09:16. > :09:19.weakened the yen. It has set up something of a stock market rally
:09:20. > :09:24.that has spurred some hopes for the once soaring economy, but it doesn't
:09:25. > :09:31.appeared to be enough. Growth is still fragile and inflation is well
:09:32. > :09:36.below the central bank? Target. Good on you, Sharon!
:09:37. > :09:52.Asian stocks advanced on Friday as the Thanksgiving break
:09:53. > :09:54.in the United States helped slow a relentless surge in the dollar
:09:55. > :10:01.that has sucked capital out of most emerging markets.
:10:02. > :10:10.To be put into the forms of US debt, Treasuries for example. Some taking
:10:11. > :10:14.them out of that and putting into the equity market. Let's have a look
:10:15. > :10:15.at constant macro, still somewhat sub Jude.
:10:16. > :10:26.The FTSE 100, it just a little bit of a pin job.
:10:27. > :10:33.of the Black Friday deals state side - here's Michelle in New York.
:10:34. > :10:40.A recent survey found that food gives a more popular than toys and
:10:41. > :10:44.can she met electronics. With sales on Black Friday slipping, retailers
:10:45. > :10:48.have started offering the deals earlier. Car buyers may be in luck,
:10:49. > :10:54.because promotions have been ramped up as they try and get rid of unsold
:10:55. > :11:00.vehicles. In an attempt to dispel doubts that retailers might have
:11:01. > :11:04.about consumer demands. The volume is expected to be lied because US
:11:05. > :11:09.markets only open for half a day and many people are still away. --
:11:10. > :11:12.expected to be like. Could lead to more volatile trading session than
:11:13. > :11:21.normal. Sue Noffke, UK Equities Fund Manager
:11:22. > :11:33.at Schroders is here. Talking about the deflation issues
:11:34. > :11:36.in Japan, give is your take? It could be quite a volatile day on
:11:37. > :11:42.Wall Street because there's hardly anyone there, funny time, isn't it?
:11:43. > :11:45.It is a strange time. US markets closed yesterday and are only open
:11:46. > :11:52.for half the day. Quite a lot of people will take a nap to the
:11:53. > :11:55.weekend. So, you're that is a bit distracted and left to its own
:11:56. > :12:02.devices quite often things are bit muted. We would expect that the
:12:03. > :12:13.focus to pick up again next week. -- Europe is a bit distracted. Pretty
:12:14. > :12:20.big record highs on Wall Street. Yes and a run on the dollar I weathered
:12:21. > :12:27.that pushes or pauses. Emerging malt kit currencies, the central bank is
:12:28. > :12:31.coming in to try and help the rupee. That is partly about the fact that
:12:32. > :12:36.they changed their notes. There is always other things going on, but
:12:37. > :12:42.the big picture if this move out of emerging markets to repatriate those
:12:43. > :12:51.US dollars. Why is it happening? It is the interest rate differential.
:12:52. > :12:56.So, Trump's victory means that more stimulus to policies and likely
:12:57. > :13:01.further interest rate rises. The first US interest rate rise about a
:13:02. > :13:05.year ago. It is been on hold throughout 2016. December is likely
:13:06. > :13:11.to see another rise. I rise means investor will get better returns...
:13:12. > :13:18.They go, great stuff. We will see They go, great stuff. We will see
:13:19. > :13:19.you again soon. We will see you again. Iceland versus Iceland, I
:13:20. > :13:20.love it. Our very own Business Guru Simon
:13:21. > :13:23.jack will be joining us to discuss the weeks big stories from the world
:13:24. > :13:37.of finance including the take over We've had the mini budget here in
:13:38. > :13:44.the UK. For the UK, Black Friday
:13:45. > :13:47.is a relatively recent import from the US, but has now
:13:48. > :13:49.become a key feature Every year, companies issue flash
:13:50. > :13:58.sales on the Friday following Last year sales topped ?1 billion
:13:59. > :14:03.in the UK on Black Friday. Shoppers are expected
:14:04. > :14:05.to spend ?2.3 million But as we've already mentioned some
:14:06. > :14:17.big names in retail Ben Thompson is at a parcel
:14:18. > :14:30.distribution centre in Reading. Yes, welcome to Reading. I'm at the
:14:31. > :14:34.regional distribution centre for one big parcel firm that is gearing up
:14:35. > :14:39.for Black Friday. Certainly what happens next, this year 's game to
:14:40. > :14:43.be a Black Friday for online. 77% of all the money better spent in the UK
:14:44. > :14:47.on Black Friday will be done online in that means big business for the
:14:48. > :14:52.parcel firms. You are the boss here, talk as to how important this is for
:14:53. > :14:55.you? It is not just today, but when the parcels arrived here on Tuesday
:14:56. > :15:00.and Wednesday and have to be sent out. That is right, today is a
:15:01. > :15:06.combination of the year's work of planning. Coping with big amount is
:15:07. > :15:13.our challenge. With hide a lot of people. This depot has 100,000
:15:14. > :15:18.parcels. On Tuesday B 25 thousands. With a every million parcels today.
:15:19. > :15:24.Another 1 million on Monday. Over the cause of the cyber weekend, 3
:15:25. > :15:27.million parcels into our network. Next Tuesday is the single busiest
:15:28. > :15:33.day of the year, what it is all about. Wonderful, good lock. Thank
:15:34. > :15:36.you. That would be the challenge. It is not just getting them into this
:15:37. > :15:41.place but getting them out to our front doors. ?1.3 billion spent just
:15:42. > :15:43.a day and then of course over the rest of the weekend. On average we
:15:44. > :16:00.will spend about ?200 each. That is then, apparently we will
:16:01. > :16:13.spend ?200 each, will you, and what will you buy? Leg over the kids. Cat
:16:14. > :16:18.accessories! -- Lego for the kids. A lot of business analysis, we've been
:16:19. > :16:22.talking to the boss of Argos and games consoles were the biggest
:16:23. > :16:24.seller in the first hour, apparently, overtaking toys.
:16:25. > :16:28.You're watching Business Live - our top story - it's Black Friday -
:16:29. > :16:30.where retailers are slashing prices to bring in the money,
:16:31. > :16:34.but customers are increasingly turning to the internet instead
:16:35. > :16:41.of the High Street to make their purchases.
:16:42. > :16:43.So watch where the money is going today.
:16:44. > :16:47.A quick look at how markets are faring....
:16:48. > :16:54.Fairly flat, if not mixed picture, Germany and France, maybe people are
:16:55. > :16:59.out shopping and not on the trading floors, you know how to get in
:17:00. > :17:03.touch. Pretty dull on the markets. Although sometimes that is good.
:17:04. > :17:05.It's a bit of a respite after the mad week we have seen.
:17:06. > :17:08.And now let's get the inside track on this week's big financial stories
:17:09. > :17:24.We dragged him into the studio on Friday! Good to see you Simon. I am
:17:25. > :17:27.always in on Friday. On Monday you were at the CBI conference, Prime
:17:28. > :17:32.Minister Theresa May made quite a critical speech. The biggest
:17:33. > :17:35.business lobby in the UK, their annual shindig and the Prime
:17:36. > :17:39.Minister addressed them. They were quite wary of the Prime Minister
:17:40. > :17:45.because since she has taken office she has rattled their cage bed and
:17:46. > :17:47.said she needs help to stamp out things like massive pay
:17:48. > :17:53.differentials and people leaving their pension funds while scooting
:17:54. > :17:57.off and taking away a lot of dividends, we have seen some
:17:58. > :18:02.examples of that and she has said that she will give them low taxes
:18:03. > :18:05.and will invest in productivity enhancing research and development
:18:06. > :18:11.but they must do their bit and stamp out some of the excesses of
:18:12. > :18:17.capitalism. She says she is pro-business but not pro business as
:18:18. > :18:21.usual. The pound spiked after her comments which is interesting
:18:22. > :18:26.because sometimes after his speech as it goes lower. She offered this
:18:27. > :18:33.grand bargain, we will keep taxes low, we are in track to have the
:18:34. > :18:37.lowest taxes of the G20 countries, due to reach 17%, she said she will
:18:38. > :18:43.provide that as long as business cleared up its act and looked as if
:18:44. > :18:49.it could reform pay. There's a huge argument about business
:18:50. > :18:52.differentials at the moment. She promised that she was pro-business
:18:53. > :18:58.and by and large they bought into that. Although a lot of that was
:18:59. > :19:02.aimed at small to medium-sized businesses, the backbone of any
:19:03. > :19:12.economy as opposed to big household corporate names? By lowering their
:19:13. > :19:15.tax rates, when I speak to SMEs they care about things like the
:19:16. > :19:20.administrative burden, the minimum wage in the UK is set to rise of
:19:21. > :19:25.April next year and go to ?8 80 by the end of parliament, they have
:19:26. > :19:31.auto enrolment, they are being forced to provide pensions. A lot of
:19:32. > :19:35.stuff to deal with. They ask, can we just have some stability, no more
:19:36. > :19:41.tricks and no surprise in the Autumn Statement. Let's talk about the
:19:42. > :19:43.Autumn Statement, the mini budget. On Wednesday Chancellor Philip
:19:44. > :19:49.Hammond had all sorts of rabbits to pull out of hats. I think the
:19:50. > :19:54.biggest takeaway from this was not so much his measures but there was
:19:55. > :19:57.this independent body set up by the previous Tory Chancellor, this
:19:58. > :20:02.independent body to look at public finances over a five-year period.
:20:03. > :20:05.And when that body and failed it everyone gave a sharp intake of
:20:06. > :20:09.breath because they had predicted that over this period we would see
:20:10. > :20:15.the highest debt as a percentage of national income that we've seen for
:20:16. > :20:22.50 years, 90% debt to GDP. It's even worse than the 70s when the UK had
:20:23. > :20:26.to borrow money from the IMF. A very gloomy forecast indeed. A lot of
:20:27. > :20:31.people said it was too gloomy and we focus too much on that. Can we
:20:32. > :20:39.afford it? The government will spend more and borrow more and cut taxes.
:20:40. > :20:49.Debt as a percentage of income will rise. We have seen worse. ?1.7
:20:50. > :20:58.trillion is roughly the GDP so 90% of that, if you do the maths!
:20:59. > :21:02.Measures were announced to try to prevent the sale of start up
:21:03. > :21:07.businesses to overseas and it happened one day later. Just
:21:08. > :21:10.yesterday we heard that the darling of the Scottish technology industry,
:21:11. > :21:19.Skyscanner, which helps you to search for cheap flights on the net,
:21:20. > :21:22.is being sold for several million dollars, in one way it is a vote of
:21:23. > :21:28.confidence in post-Brexit Britain, on the other hand is it not shame
:21:29. > :21:35.that someone else was doing the buying. Philip Hammond set up
:21:36. > :21:40.provisions in his statement to try to allow British businesses to grow
:21:41. > :21:45.so that our crown jewels will not go to overseas companies. It is a great
:21:46. > :21:51.deal for Skyscanner, they can go global, and it's a nice big payday.
:21:52. > :21:57.The CEO in Edinburgh doing this. They are not in the rupee is
:21:58. > :22:00.otherwise they wouldn't be any to count. Interesting to see what they
:22:01. > :22:05.do with the Scottish company, that will be the long-term measure of if
:22:06. > :22:11.it was a good deal or not. Thank you, Simon, enjoy your rest. In a
:22:12. > :22:21.moment, we'll be going through the papers with soon. Here's a reminder
:22:22. > :22:26.of how to get in touch. We'll keep you up-to-date with all the latest
:22:27. > :22:30.details with insight and analysis from the BBC's team of editors and
:22:31. > :22:36.writers around the world and we also want to hear from you so get
:22:37. > :22:45.involved on the live web page. You can find us on Twitter and on
:22:46. > :22:50.Facebook. Business Live on TV and online whenever you need to know.
:22:51. > :22:58.Sue is back to look through some of the stories in the papers. This is a
:22:59. > :23:08.classic, Iceland, the country, is angry about Iceland's stores move.
:23:09. > :23:13.Just explain this? The frozen food supermarket specialist trading on
:23:14. > :23:19.the high under that name, and the country of Iceland is upset about.
:23:20. > :23:23.It is preventing Iceland, the country, from using the name for
:23:24. > :23:30.other products and services derived from their homeland. The supermarket
:23:31. > :23:37.says it is their trademark which is very strange. It is and this will be
:23:38. > :23:41.debated. Whether a definitive decision comes at why has it only
:23:42. > :23:48.happened now, I've been in this country for about 15 years, long
:23:49. > :23:56.time. Some previous cases had gone and that this has -- they've been
:23:57. > :24:00.upheld in the past. It is one for the lawyers. The Times is looking at
:24:01. > :24:07.Pfizer plotted price hike with two UK firms. This is where the
:24:08. > :24:13.regulator seems to be on the case. Drugs pricing is coming under
:24:14. > :24:15.increased scrutiny globally in the United States and also here and
:24:16. > :24:22.there are various rules and regulations. What seems to happen
:24:23. > :24:28.with Pfizer is that they have sought to exploit a loophole within the NHS
:24:29. > :24:34.pricing for drugs that don't have plated protection. So anyone can
:24:35. > :24:41.sell them and make them, and the price caps do not apply to those
:24:42. > :24:55.drugs whereas they do apply to more innovative drugs. The price on some
:24:56. > :24:59.drugs were hiked over 200%, especially epilepsy drugs which to
:25:00. > :25:07.some sufferers are absolutely critical. They are going to be taken
:25:08. > :25:15.to task. Warnings of the biggest squeeze on pay for all of us since
:25:16. > :25:21.the Second World War. This is the Institute for Fiscal Studies. It
:25:22. > :25:32.looks that the economy and measures of it. And the squeeze is coming
:25:33. > :25:39.from two aspects, rises in wages, that can be the mix of employment
:25:40. > :25:45.within the economy so it's a bit like self-employment, people in work
:25:46. > :25:49.but the quality and pay rates for those jobs is quite low and it's
:25:50. > :25:56.also the level of inflation, the UK's decision to leave the EU,
:25:57. > :26:02.sterling will push up inflation that will erode peoples real wages. Have
:26:03. > :26:12.a good weekend. Thank you for your company, have a good time shopping!
:26:13. > :26:14.Good morning, some significant changes this weekend.