19/12/2016 BBC Business Live

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

Panic buying and looting in Venezuela as the currency

Live from London, that's our top story on Monday, 19th December.

Venezuela's President Nicolas Maduro has been forced to delay

the withdrawal of the country's most widely used banknote

Also in the programme, can the EU strike a trade deal

with Japan amid fears of growing protectionism?

The market for looking like this. The Santa rally isn't happening.

More details later. And as Christmas fast approaches

we'll be getting the inside track Our very own Santa's little helper

is somewhere in London. Guess where I am. I am at the

world's oldest toy shop, Hamleys in London. Christmas is days away and

Father Christmas is pretty busy. Are you excited for Father Christmas?

Yes. We will be taking a look at this near $90 billion global

industry. And the question today, what was your favourite Christmas

toy? You know what to do, use the hashtag, hello, elves! Hello!

I wonder if Hamleys know what they have let themselves in for. More

later. And keep your comments coming in on what your favourite toy was.

Troops are patrolling cities where looting and protests have

erupted over the government's plan to withdraw the country's

largest denomination bank note from circulation.

A partial curfew is in place in the southern city

of Ciudad Bolivar, which has been most affected by the disturbances.

President Nicolas Maduro says more than 300

He has now postponed the withdrawal of the 100 bolivar

note until January and, seeking to calm nerves,

has said a first batch of replacement notes had arrived

So how did the country get to this state?

Venezuela's economy has been struggling for a long time now.

By the end of this year it will be producing more than 20% less good

One of the driving factors is the reliance on oil.

The black stuff accounts for 96% of exports but even before

the price collapse of the last two years the economy was shrinking.

That along with the way the government has managed

the economy with price and currency controls mean the International

Monetary Fund is predicting inflation of nearly 500%

And that's why the 100 Bolivar note which was supposed to have been

withdrawn on Friday is worth less than 2 US cents.

It was the most common banknote accounting for almost 48%

Diego Zuluaga from the UK based think-tank the Institute

-- as Ben outlined there, this is just the tip of the iceberg in

Venezuela, isn't it? But was it actually a good idea to get bigger

denominated notes on stream, but it has just been purely executed --

poorly executed? You have inflation, so you need to change the

denomination. The 100 Bolivar was becoming useless. It is 50% of the

money in circulation in Venezuela. And most people rely on cash to make

bank accounts. It isn't poorly bank accounts. It isn't poorly

executed, it is just the wrong way to approach the problem. If

something isn't done zero 's will just keep being added to the

currency. Interesting to hear the government's reason for doing this.

They were trying to stop money-laundering and gang activity.

Many were bemused by that. It is an issue of scapegoating. It is about

finding the external enemy. Colombia has been blamed many times for

holding the currency abroad. But if people are hoarding currency, taking

even more out of it does not seem to be a remedy. How is the economy

fairy, how are people getting along, because there was a lot of

discontent about the current government? Talk us through what is

going on and what might happen in the New Year. The economy of

Venezuela has been in chaos. Increasing chaos for the better part

of the past two years. The decline in the oil price, its main export,

has compounded problems. Venezuelan need something like $150 per barrel

to meet the market price. There is escalating unrest. Supplies are

short. There are no medical supplies. The productivity of the

economy has stalled. That is a result of the mismanagement which

has been taking place for the past two years. When do you think we

might see some political change? The main issue is economic change. The

government to change direction completely. Removing price controls.

And stop harassing private activity, which is at the heart of this...

Will we see that before political change? It is difficult to tell. The

government is set in its ways. It has established a network of favour

granting to particular groups in society. It's difficult to reverse.

The heart of the problem is economic and it is a direct consequence.

Unless that changes, problems will only escalate, and things will only

get worse on a political plane, as well. Thank you. Interesting

scenario and a difficult one, as scenario and a difficult one, as

well, we shall keep across it at the BBC.

Talks aimed at averting a strike by cabin crew at British Airways

Members of the Unite union are due to walk out on Christmas Day

and Boxing Day in a row over pay and conditions.

The industrial action, if it goes ahead, could

Apple plans to appeal against the European Commission's

ruling that it pays up to E13 billion to

EU regulators ruled Apple's controversial tax deal was illegal,

Ireland is also contesting the decision, claiming EU

regulators were interfering with national sovereignty.

Rogue One: A Star Wars Story has taken nearly $291 million around

North America accounted for about half of the total

for the Star Wars spin-off - making $155 million.

That gave the film the second-best December opening weekend on record

Will you go and see it? No, I have heard mixed reviews, I

might just wait... I am pretty sure I will be going,

because I have three young boys. Yeah, you don't have a choice.

Finance leaders from Japan and the EU want to reach

an agreement on a free-trade pact this week.

It comes at an uncertain time for international trade,

as US President-elect Donald Trump speaks of protectionism

and the UK's decision to split from the European Union Mariko Oi

Bring us up to date. It's a fascinating issue because of all of

those things we've heard elsewhere. Trump, Brexit, really weighing on

all of this. That's right. Just as we thought free trade deals are

totally out of fashion, Asian countries have been pursuing their

own deals. If you remember recently it ratified their partnership, which

includes 12 countries, including the United States. -- especially Japan.

Trump said he would kill the deal on his first day in office. Canada and

the EU have been trying to reach an agreement. There has been talk on

the Tokyo side, whether there will be political pressure, just like the

EU Canada deal faced, but it seems that they are getting close to an

agreement. And that is a big thing over here in Asia. Thanks very much.

We will check with Singapore as we approach Christmas. I would like to

stay in Asia... Nintendo tumbled 7%

with investors underwhelmed Its new game Super Mario Run

received tepid reviews, a far cry from the global phenomenon

that was Pokemon Go Shares also hit by profit taking

and a stronger yen on concerns about China-US tensions

after Beijing seized a US Navy drone in international waters

in the South China Sea. In Europe, as we head

into the Christmas week, you'd think it might be quiet,

but amid industrial relations disputes and the threat of strikes

it's going to be anything but quiet. Joining us is Jeremy Cook,

Chief Economist at World First. Nice to see you. Then there's

touching on what is going on in a brand-new trading week. BP doing

well. Its shares our up half a percent, doing deals with Abu Dhabi.

It is no coincidence after those deals that we will see more

investment in the oil market and oil sector by big players, for example

BP. They've taken a 10% share in the Abu Dhabi all company. -- oil. This

will add access to the Emirates oilfields. It is a pretty shrewd

manoeuvre. And Abu Dhabi get 80% stake in BP. Around 2.2. They are

still wheeling and dealing even though we are heading towards the

Christmas week which tends to be quiet. It does tend to be quiet. But

the long-term scenarios for oil suggests prices will pick up. BB

stand to benefit from that. Oil is a low marginal cost per barrel at the

moment. No Santa rally yet. A couple of days still to go. -- BP stand to

benefit. The US have had an amazing run. You

sound disappointed. Everybody is still talking about Dow Jones. The

FTSE did well on Friday. Yes, and it is a continue of the stimulus from

the Trump administration. There has been activity over bonds. That will

continue into the New Year until the 20th of January when the presidency

of Donald Trump actually starts. And we find out if everything he said on

the campaign trail was true. How quickly does that translate? Will

the markets do something as soon as he is inaugurated? He said he would

do something with China on his first day in office. We will find out

whether he is actually going to start playing hardball with China.

We were talking about the EU Japan trade. The protectionism, the rising

protectionism of the presidency, in a post Brexit environment. These

trade deals which people are not really talking about at the moment

between some of the largest economies out there will keep things

going. What was your favourite Christmas toy? Are used to like

getting a new mountain bike -- I used. We always able to go out for a

bike ride before coming back for some turkey. Good stuff. Thanks very

much. Happy Christmas. You, too. Still to come, Aaron's making

himself useful for once I am bringing this back, Pride In

The Face for you. -- Pie. We are having a look at Hamleys. We're

going to talk about the Christmas trade and find out about their

expansion plans in, where else, China!

Thousands of Post Office workers are beginning strike action today.

The walkout by the Communication Workers Union is the latest move

in a dispute over pension changes, job security and closures.

Industrial action this week will also affect airports

and Southern Rail services as Keith Doyle reports.

This last week before Christmas is already busy and stressful.

But strikes and industrial action could make it a Christmas

On the trains, Southern Rail passengers face more disruption

as 400 conductors strike today and tomorrow.

It's not expected to cause the same level of disruption as last

week's strikes by drivers, however many routes

3,500 workers at Crown Post Offices are starting a five-day strike today

in a despute over jobs and pensions that may see the closure of larger

high street branches, although the Post Office says

disruption to the public should be minimal.

Airline travellers face double trouble this week as baggage

handlers working for Swissport are set to strike on

This will mainly affect regional airports.

But a strike by 4,500 British Airways cabin crew over pay

could also see flights disrupted on Christmas Day and Boxing Day.

There are efforts being made to resolve these disputes.

BA management and the union Unite will meet today and a meeting

tomorrow to resolve the baggage handlers' dispute is due to be held

but the Post Office strike is on and there seems little

prospect of an early end to the long-running dispute

between the RMT union and Southern Rail, meaning 300,000

If you are affected by the disruption, keep across the Business

Live page. This is the latest on Southern Rail for example.

Discussing what's going on there. There is more about what is

happening with postmen as well. Who is affected and where? Keep across

our Business Live page as we keep you up-to-date with the waves of

strikes that are happening across the country.

Full details on the website, of course:

Our top story, Venezuela's President Nicolas Maduro has been forced

to delay the withdrawal of the country's most

widely used banknote following a period of public unrest.

Rampant inflation means that the Venezuelan 100 bolivar note

It is a really tricky situation there.

Let's get the Inside Track on a busy period for the toy industry.

With Christmas less than a week a way, it's a critical time

for the likes of Mattel, Lego and Hasbro.

Hundreds of others hoping their toy will be top of the present

wish-list. Aaron Heslehurst is at London's

world famous toy story Hamleys. What have you found there? Are they

for Sally? Ah. Yeah, they're for Sally or they could be for you Ben

if you want them. I'm like a kid in a candy shop. I have only been here

for 40 minutes and I don't know where to begin. This is the world's

oldest toy shop, it is called Hamleys. It was started by William

Hamley in 1760. He opened a toy shop in hold burn. You guys said it, it

is an important period of time. For all these toy makers, a third of

their annual sales are attributed to this Christmas period. It is

important they get it right and it seems like things are going well

because continued growth around the globe for the toy makers, it

continues to grow around the 7% mark. We have got a few of the hot

picks. This is the Hatchimals. This is the only one they have. I'm going

to try and nick it! No, not really. Lego, big Barbie dolls since they

introduced the different ethnicities to reflect our modern life. I'm

joined by the CEO of Hamleys. The doors are not open yet. Let's talk

Christmas trade. You opened the 100th store? We did. How is

Christmas trade going? Pretty positive. Down to three factors.

Firstly, we have seen an increase to our store in Regent Street. In the

last six months we have doubled the size of our UK portfolio and we are

bringing Hamleys to 12 locations throughout the UK. As you referred

to, last Thursday, we opened our 100th store in the largest shopping

mall in South Africa and our international portfolio continues to

trade strongly. I was looking briefly, I was looking at the

numbers here, you get five million people a year through the doors here

at your flagship store? More than that. Well, I was looking at the

tourist numbers, port Rica gets 3.5 million, you get more visitors that

countries get tourists. Indeed. I have got to talk to you about

Brexit. It continues to be a hot topic. The pound has dropped. It is

more expensive for you to buy your goods in? We saw foot fall growth.

Wur shoppers are getting a better return against sterling. However,

our job is simple. Every customer that visits our store, it is an

experience, the magical theatre and ambiance that Hamleys has to bring.

We are talking about this Hatchimal. I think it costs about 60 bucks. On

eBay, what was it on eBay $800 on eBay! I want to talk about the

internet and Amazon. I know it is about the experience. But the likes

of online shopping, that's got to give you a hit here and there? Well,

to some extent it does, but we don't directly compete with the internet

because the internet can't compete with our service proposition.

Hamleys is about building experiences, energy, excitement,

theatre, demonstrations and interaction with customers and

really bringing products to life. The internet cannot compete with

that. And can't compete with that, indeed, I was here a couple of years

looking at the big Christmas spend and the hot toys and since then

you're owned by the Chinese now. China is your market. One of our

markets. We operate in 26 different countries and China is a very

important market for us. You say one of them, but don't, Hamleys has

plans to open, you tell me. Well, since we have been acquired by the

Chinese, we opened our first Hamleys store in China. We have two centres

toe open in China and we have identified an additional 50 Chinese

stores which will open in the next two to three years. Wow. We

appreciate your time. Good luck with the rest of the Christmas period. It

will be manic today? It is. It is the second busiest trading day of

the year. That's what you have sent me down to, the second busiest

trading day of the year! Some of the hot toys. I mentioned Lego. Lego

continues to be a phenomena, it is one of the biggest, most profitable

toy companies in the world. A stark cry from a decade ago when Lego

nearly went bust! Barbie has been reinvigorated. She was a doll that

was dying, let's be frank until they introduced 23 different ethnicities

and the different sizes, double digit sales for the Barbie dolls and

the big Nerf gun, I'ming to bring that back! I'm going to take you on!

Bring two back. We could have such a good fight with that! That would be

the best stress relief ever. We could sell tickets!

I don't know how it works. Next time I talk to you I will have sussed

that out, OK? I'm sure you could figure it out! See you later.

He is having a great time there. Whenever I go there with my

children, you cannot move. You get dragged in every direction. And

you're trying to watch them so they don't get lost. Heather says a real

typewriter when she was 13. Mum refused to buy a toy one. Very

useful. That's why you work in tax. Neil Death Star, heavy duty

cardboard, it is still in the loft. Morgan says my favourite toy is

Lego. Getting more this year! Good stuff. Thank you for your messages.

My son gave me his third revision of his list for Santa last night and he

expects it to get there in time. You better get it sent. Put it on

e-mail. You can send them by e-mail to the North Pole. I will tweet it.

If Donald Trump can do it, so can I. The BBC's Dominic

O'Connell is with us. Your favourite toy? Lego. A command

shuttle. I was a seven-year-old. It is not what I want, it is what they

want. Were you into Lego when you were a little boy? Lego was out of

fashion when I was growing up. It was boring things like bicycles and

stuff like that, but these days, it is all digital, but you still can't

to Santa Claus. Financial Times talking digital and Apple, Dublin

claims Brussels exceeded powers over Apple tax. We were waiting for

there, weren't we? It dates back to August when Europe said that Apple

hadn't paid 13 billion euros in taxes and it should pay up. Ireland

said this morning it has given the reasons for the legal reasons for

its appeal. It says basically that to Brussels it said that Irish tax

rulings are none of your business and it says that no Irish tax law

was ignored when they toct decisions and also that sovereignty is

national, ie, it is Dublin that make the decisions, not Brussels.

We expect an appeal from Apple later today. Apple will say the same

things with a twist. It will say that tax should be paid in America,

not in Ireland. It is holding $2 billion off-shore. It says it will

take the money back on shore. It hasn't done so, but it will pay it

and pay it in America and not in Europe.

Let's turn our attention to food. If you are not looking forward to the

turkey and the trimmings, how about take-away, Deliveroo are doing very

well. Now we're going to have dark kitchens. Deliveroo are going to

build kitchens which restaurants can use. Good stuff. Thank you too for

your tweets today. It is very interesting to hear what people got

at Christmas, isn't it? See you tomorrow. Same place, bye-bye.

We're starting this week off on a quiet settled note thanks to high

pressure, but midweek