Browse content similar to 09/03/2017. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Sally Bundock and Alice Baxter. | :00:00. | :00:00. | |
It's called the Trial of the Century in South Korea | :00:00. | :00:10. | |
and it kicked off today - Jae Y Lee pleads not guilty | :00:11. | :00:12. | |
to corruption charges including bribery and embezzlement. | :00:13. | :00:18. | |
Live from London, that's our top story on Thursday, 9th of March. | :00:19. | :00:33. | |
With a verdict expected in as little as three months' time, we'll ask | :00:34. | :00:38. | |
what the fate of the boss tells us about South Korea's biggest company. | :00:39. | :00:41. | |
Prices in China's factories rocket the most since | :00:42. | :00:49. | |
Could the world's factory be making inflation for the rest of us? | :00:50. | :00:58. | |
We will be keeping a close eye on the markets. Markets in Europe also | :00:59. | :01:03. | |
seeing opening slightly down. Is it child's play or an incredible | :01:04. | :01:14. | |
business idea? The former publisher who opened the door to magical toys. | :01:15. | :01:21. | |
And the former UK Chancellor, George Osborne, is to be paid almost | :01:22. | :01:30. | |
$800,000 a year for advising the US fund manager for just 48 days work. | :01:31. | :01:35. | |
the money. Do you think this is the money. Do you think this is | :01:36. | :01:36. | |
right? Get in touch. We start in the South | :01:37. | :01:44. | |
Korean capital, Seoul, where what's being called | :01:45. | :01:54. | |
the Trial of the Century has begun. The man in charge of the country's | :01:55. | :01:59. | |
biggest company, Samsung, has formally denied charges | :02:00. | :02:02. | |
of bribery and embezzlement in a scandal that has also seen | :02:03. | :02:03. | |
the president impeached. Samsung may be a household | :02:04. | :02:07. | |
name around the world, Jae Y Lee is vice-chairman | :02:08. | :02:09. | |
of the company, but he's known in the South Korean media | :02:10. | :02:20. | |
as the "crown prince of Samsung". That's because he's the only son | :02:21. | :02:28. | |
of the chairman, Lee Kun-Hee, who was once convicted of bribery | :02:29. | :02:33. | |
and tax evasion but later pardoned. Jae-Y has been in charge | :02:34. | :02:36. | |
since his father had That gives you a sense of the | :02:37. | :02:38. | |
background to the story. Geoffrey Cain is a journalist | :02:39. | :03:33. | |
who spent five years in Seoul and is now writing | :03:34. | :03:35. | |
a book about Samsung. He joins us from Arizona, | :03:36. | :03:38. | |
in the United States. We talk to you before when it was | :03:39. | :03:45. | |
unfolding. Today he is in court. If us a sense of how big a deal this is | :03:46. | :03:50. | |
for South Korea, Samson and for politics there. It is a very big | :03:51. | :03:57. | |
deal. This case is the trial of the century for South Korea. We have | :03:58. | :04:04. | |
never seen this happen before the eyes chairman is arrested before | :04:05. | :04:11. | |
being charged with a crime -- the vice-chairman. In the past, his | :04:12. | :04:16. | |
father has been convicted but he was never arrested and never actually | :04:17. | :04:21. | |
served any prison sentence. He was pardoned by a president. This is a | :04:22. | :04:27. | |
very unusual case. Will we see this case happening at the same time that | :04:28. | :04:33. | |
a sitting president is impeached, will we see the perfect storm | :04:34. | :04:35. | |
to a change in how business is done to a change in how business is done | :04:36. | :04:42. | |
in South Korea? I mean between it and politics? I do not think there | :04:43. | :04:46. | |
will be a fundamental change in the way politics and business are done | :04:47. | :04:51. | |
in South Korea. I think the general foundation will be in place, it is | :04:52. | :04:56. | |
something that has been in place for decades. The system goes back | :04:57. | :05:02. | |
through the history of South Korea's democracy, its authoritarian | :05:03. | :05:06. | |
governments in the past. However, we could see more transparency in | :05:07. | :05:10. | |
general. Broader changes that might push things in the right direction, | :05:11. | :05:14. | |
especially considering both of these cases are popping up at the same | :05:15. | :05:17. | |
time and the president herself, if she is found to be in this bad | :05:18. | :05:23. | |
situation, she may also face trial. In the meantime, for the company, | :05:24. | :05:27. | |
business as usual. The shares recently at record highs, profits | :05:28. | :05:32. | |
rolling in, products still selling despite the scandal and the Galaxy | :05:33. | :05:40. | |
7. That is the beauty of Samsung. It manages to get through all sorts of | :05:41. | :05:45. | |
hard times, smoking phones, problems with the leader, the WikiLeaks with | :05:46. | :05:52. | |
the CIA espionage against its smart TVs, one thing after another. It | :05:53. | :05:57. | |
seems that this company has such a strong system in place that can | :05:58. | :06:02. | |
weather all of it, they can keep making the products, the hard work | :06:03. | :06:07. | |
and that is the bottom line. Do we think Jae Y Lee might end up behind | :06:08. | :06:12. | |
bars or will he be pardoned like his dad? That depends on who becomes the | :06:13. | :06:20. | |
next president. It is hard to tell. I can definitely say many presidents | :06:21. | :06:25. | |
have taken office in South Korea and many have pledged to clean up the | :06:26. | :06:29. | |
system, stop the systems of presidential pardons, even the | :06:30. | :06:33. | |
current president who was undergoing her impeachment decision with the | :06:34. | :06:38. | |
constitutional court, she also pledged to clean up the system and | :06:39. | :06:43. | |
now she is the one in the dock for the giant scandal. I am doubtful | :06:44. | :06:49. | |
much will really change. We have lost you for a moment. He joined us | :06:50. | :06:55. | |
from Arizona. We spoke to him a couple of weeks ago. I was just | :06:56. | :07:00. | |
going to ask him what the time is there. He is great. | :07:01. | :07:05. | |
Interesting stuff. Lots of news about Samsung on our website as | :07:06. | :07:12. | |
well. Shares in Toshiba have closed down more than 7% in Tokyo. The | :07:13. | :07:22. | |
latest news comes after Reuters reported bankruptcy attorneys have | :07:23. | :07:30. | |
been hired. It has cost Toshiba $6.5 billion putting the company's future | :07:31. | :07:31. | |
at risk. Cab hire service Uber says it | :07:32. | :07:33. | |
will ban a secret software tool from being used | :07:34. | :07:35. | |
to evade undercover regulators. The software, called Greyball, | :07:36. | :07:37. | |
seeks to identify officials around the world trying to catch Uber | :07:38. | :07:41. | |
drivers operating illegally. The ride-hailing firm has been | :07:42. | :07:44. | |
using the tool to secure early access to cities | :07:45. | :07:49. | |
where its operations had not Reports from Vietnamese state media | :07:50. | :07:52. | |
suggest drinks giant Coca-Cola is planning to invest an additional | :07:53. | :07:58. | |
$285 million in the country. The beverage maker's decision | :07:59. | :08:03. | |
highlights its interest in the Vietnam market and may put | :08:04. | :08:09. | |
pressure on its competitors. With this investment, Coca-Cola's | :08:10. | :08:11. | |
total investment in the country Let us talk producer price inflation | :08:12. | :08:14. | |
in China. That's the prices of goods | :08:15. | :08:32. | |
as they leave the factory gate - it has been soaring at its fastest | :08:33. | :08:36. | |
rate in almost nine years. It's being fuelled by a jump | :08:37. | :08:39. | |
in the price of steel The official data has raised | :08:40. | :08:41. | |
the prospect that China may be about to export inflation | :08:42. | :08:45. | |
to the rest of the world, as the What more do you have for us on | :08:46. | :08:55. | |
this? As you mentioned, it was because of higher prices of steel | :08:56. | :08:59. | |
and other raw materials. If you take a look at the consumer price | :09:00. | :09:03. | |
inflation index, the prices of what consumers buy, it is cooled to the | :09:04. | :09:11. | |
slowest pace in over two years. Going in separate directions, | :09:12. | :09:15. | |
analysts are slightly puzzled about the strength of the broader economy. | :09:16. | :09:20. | |
Just over the weekend, Beijing has cut its growth target for this year | :09:21. | :09:26. | |
to 6.5%, the slowest growth, if confirmed, in nearly three decades. | :09:27. | :09:29. | |
Overall, it seems the higher production costs have not even | :09:30. | :09:32. | |
passed over to consumers just yet. Thank you. As we have just been | :09:33. | :09:40. | |
hearing, the big news out of China was that producer price inflation | :09:41. | :09:42. | |
accelerated to its fastest pace in nearly nine years, but consumer | :09:43. | :09:46. | |
inflation cooled more than expected. And that's had a huge downward | :09:47. | :09:50. | |
bearing on Asian markets. Energy firms also led a broad | :09:51. | :09:53. | |
sell-off on Thursday following a 5% plunge in oil prices, but the dollar | :09:54. | :10:01. | |
advance on the yen provided the region with one of its only | :10:02. | :10:04. | |
advances as Tokyo's Nikkei added 0.3% to end a four-day | :10:05. | :10:10. | |
losing streak. Meanwhile, here in Europe,ahead | :10:11. | :10:15. | |
of today's ECB meeting where the expectation | :10:16. | :10:20. | |
is that monetary policy markets here in London | :10:21. | :10:22. | |
markets particularly And Michelle Fleury has | :10:23. | :10:28. | |
the details about what's ahead They will be paying close attention | :10:29. | :10:44. | |
to the ECB meeting. Data on the number of Americans filing for | :10:45. | :10:48. | |
unemployment benefit is released this birthday. Most economists | :10:49. | :10:52. | |
looking for a rise of 4000 -- this Thursday. All of this comes ahead of | :10:53. | :10:58. | |
Friday's monthly jobs report, the last major piece of economic news | :10:59. | :11:02. | |
ahead of the US central bank policy meeting. Expectation is they will | :11:03. | :11:10. | |
raise rates. The tough retail environment is likely to have an | :11:11. | :11:14. | |
impact on results from office supplies company Staples. The | :11:15. | :11:21. | |
fourth-quarter results of June Thursday. Intense competition from | :11:22. | :11:27. | |
Walmart and Amazon most likely hurt sales -- results are coming on | :11:28. | :11:36. | |
Thursday. James, nice to see you. Loads of stories today. This we | :11:37. | :11:40. | |
should mention as well, change at the top at BT. A minor coming in. | :11:41. | :11:55. | |
Famously he was chairman of SAB Miller last year. A stalwart of the | :11:56. | :12:04. | |
city. BT will be very happy to have him as chairman. And Rio Tinto, he | :12:05. | :12:09. | |
has been on the board for a long time, he steps down later this year. | :12:10. | :12:15. | |
Change at the top, big change in career from mining to telecoms. Let | :12:16. | :12:21. | |
us talk about the UK budget, it came out yesterday, splashed across the | :12:22. | :12:25. | |
papers in the UK. The headline here has been the changes to national | :12:26. | :12:29. | |
insurance contributions, but broadly speaking, what did the Budget mean | :12:30. | :12:34. | |
for business? There is very little in terms of new policy. The | :12:35. | :12:39. | |
Chancellor decided to leave any major policies on business until the | :12:40. | :12:44. | |
autumn budget which he said will be the UK's main fiscal statement from | :12:45. | :12:49. | |
now on. Clearly the Office for Budget Responsibility which looks at | :12:50. | :12:52. | |
forecasts on behalf of the Government said the UK economy will | :12:53. | :12:57. | |
grow by 2% this year rather than the 1.4% it had predicted. Short-term | :12:58. | :13:08. | |
improvement. Also on the agenda, it has been mentioned already, European | :13:09. | :13:12. | |
Central Bank meeting. Everyone wants to keep quantitive easing going, is | :13:13. | :13:16. | |
that correct? That is right. They will be looking for any sense that | :13:17. | :13:24. | |
quantitive easing is tapering... It is money being pumped into the | :13:25. | :13:32. | |
market, helping the fund managers add-in for lighter. It has been | :13:33. | :13:41. | |
going on since the financial crisis -- ad infinitum. I remember the | :13:42. | :13:49. | |
tapering tantrum in the US. The same issue for central banks around the | :13:50. | :13:54. | |
world. We saw the 5% plunge in prices on Thursday, today a slight | :13:55. | :13:59. | |
stemming of that. Following Tom Ince from the Saudi Arabian oil minister, | :14:00. | :14:09. | |
the boss of BP was there, planning low oil prices for longer -- | :14:10. | :14:13. | |
following comments. That is the territory we are in. James is | :14:14. | :14:19. | |
returning later. He will talk more about the Budget and what George | :14:20. | :14:23. | |
Osborne is up to, earning a pretty penny. Still to come... The inside | :14:24. | :14:30. | |
track on the Irish company trying to open the door for childhood trains. | :14:31. | :14:34. | |
Quite literally. We will explain that in a moment. You are with | :14:35. | :14:39. | |
Business Live on BBC News. First, here in the UK, lots of corporate | :14:40. | :14:44. | |
stories. The supermarket group Morrisons reporting a rise in annual | :14:45. | :14:49. | |
profits and sales. The Bradford -based group saw an 11.6% rise in | :14:50. | :14:56. | |
profits to some ?337 million for 2016 but it has warned of | :14:57. | :15:01. | |
uncertainties ahead. All of the details for us. Talk us through the | :15:02. | :15:06. | |
numbers. On the face of it, they were pretty good. Total revenue up | :15:07. | :15:10. | |
1.2%, reasonable performance. Like-for-like sales up one for 7%. | :15:11. | :15:17. | |
Underlying profits up a very strong 11.6%. Investors do not seem that | :15:18. | :15:23. | |
impressed this morning. Morrison share price is down nearly 5%. Maybe | :15:24. | :15:29. | |
they were expecting more or possibly the warnings of uncertainties ahead | :15:30. | :15:34. | |
coming to roost. What have Morrisons been doing to get into this | :15:35. | :15:37. | |
situation? They have been restructuring for the past two | :15:38. | :15:40. | |
years, closing some stores, particularly smaller ones, they have | :15:41. | :15:45. | |
sold a stake in the US retailer, the online retailer, they have reduced | :15:46. | :15:50. | |
debt quite a lot and they have been trying to attract more customers by | :15:51. | :15:54. | |
keeping prices down. They have partnerships with treble-macro and | :15:55. | :16:01. | |
Amazon. They are supplying products to Amazon -- with Ocado. This seems | :16:02. | :16:09. | |
to be reaping rewards. But there are uncertainties ahead. | :16:10. | :16:14. | |
They say more rocky times ahead, or not? Absolutely, the big one is the | :16:15. | :16:22. | |
pound sterling. It fell dramatically after the Euro referendum last year, | :16:23. | :16:30. | |
it hasn't really recovered. Importing produce from abroad then | :16:31. | :16:34. | |
becomes more expensive the supermarkets and the choices to | :16:35. | :16:37. | |
allow its air raid their profit margins or pass on the cost of the | :16:38. | :16:41. | |
consumers. This is a fiercely competitive sector. Aldi and Lidl | :16:42. | :16:50. | |
mounted a price war on the other supermarkets. It's a rocky road | :16:51. | :16:55. | |
ahead which the chief executive was talking about this morning. Thank | :16:56. | :17:01. | |
you. Morrisons with its rise in annual profits and sales. | :17:02. | :17:07. | |
On the website, more detail on the Budget. You can read more detail on | :17:08. | :17:15. | |
what the Chancellor and the Shadow Chancellor had to say. | :17:16. | :17:18. | |
You're watching Business live - our top story. | :17:19. | :17:24. | |
The de facto head of Samsung has formally pleaded not guilty to | :17:25. | :17:35. | |
corruption charges as his trial begins in South Korea. | :17:36. | :17:36. | |
A quick look at how markets are faring. | :17:37. | :17:41. | |
Markets are slightly lower at the moment, a lot is on the agenda today | :17:42. | :17:48. | |
including a central bank meeting at the European Central Bank announcing | :17:49. | :17:51. | |
their latest decision is midday today. Also a story that has just | :17:52. | :17:56. | |
been breaking coming from emirates, comments coming from them basically | :17:57. | :18:01. | |
saying that since Donald Trump's travel ban in January it had a | :18:02. | :18:05. | |
significant impact on the booking rates that they've seen for the | :18:06. | :18:09. | |
airline to the United States. No surprise to hear that. This is a | :18:10. | :18:15. | |
quote, the first US travel or the booking by some 35% overnight. Its | :18:16. | :18:21. | |
effect was instantaneous, that's the news coming from emirates. That | :18:22. | :18:28. | |
travel ban wasn't allowed to follow through because of legal blocking. | :18:29. | :18:33. | |
Now, many of you may have grown up believing there were fairies | :18:34. | :18:36. | |
Well our next guest has turned this fairy tale into a thriving business | :18:37. | :18:40. | |
moving the mystery visitors into the home. | :18:41. | :18:43. | |
The Irish Fairy Door Company does exactly "what is says on the tin" - | :18:44. | :18:47. | |
produces little fairy doors aimed at children from ages | :18:48. | :18:49. | |
According to the company, one in every two children in Ireland | :18:50. | :18:53. | |
From making the small wooden doors at the kitchen table, | :18:54. | :19:03. | |
the business has expanded and more than 150,000 doors have been | :19:04. | :19:06. | |
sold in 150 different countries worldwide. | :19:07. | :19:14. | |
Niamh Sherwin Barry, co-founder of The Irish Fairy | :19:15. | :19:18. | |
Wonderful to see you. And we could have some fairies in the studio! The | :19:19. | :19:33. | |
keys have all gone so they are somewhere in the studio. Welcome to | :19:34. | :19:39. | |
the programme. It is a fascinating idea and it's a very simple idea | :19:40. | :19:44. | |
that sounds like it has been extremely popular. Tell us how it | :19:45. | :19:49. | |
started. My friend and myself and our husbands got together. We had | :19:50. | :19:53. | |
seen a tiny door in America and we decided to bring it home to our | :19:54. | :19:58. | |
children and fairies moved in. That was 2008. The company started in | :19:59. | :20:04. | |
2013 so we three years in business now. Tell us about the idea. You get | :20:05. | :20:09. | |
the door and your child then believes the fairy has moved in. The | :20:10. | :20:15. | |
idea is you pick a name for your ferry and register with us on the | :20:16. | :20:18. | |
website. You leave the key out overnight. If the key has gone in | :20:19. | :20:22. | |
the morning the children know the fairy has arrived and it's going to | :20:23. | :20:27. | |
stay there for ever. It's all very magical land wonderful but the | :20:28. | :20:31. | |
cynical part of me wants to say I think you have to spend ?20 in order | :20:32. | :20:35. | |
to get one of these little wooden doors. Is it value for money? What | :20:36. | :20:43. | |
are we getting for that? A world of imagination. Technology is here, it | :20:44. | :20:47. | |
has its place but it's taken over. We want to bring the imagination | :20:48. | :20:51. | |
back. The way we used to play as kids. To actually sit down and usual | :20:52. | :20:56. | |
imagination. I could sit here all day explaining to you what happens | :20:57. | :20:59. | |
when a child gets one of these doors. Give one to a child and see | :21:00. | :21:04. | |
what happens. Their image nation is there for the taking, they aren't | :21:05. | :21:10. | |
using it enough. If a lovely concept but I'm imagining you pitching this | :21:11. | :21:15. | |
idea to investors. How did that go, how did you raise the money to get | :21:16. | :21:21. | |
this off the ground? Irish people are storytellers so we had a lot of | :21:22. | :21:26. | |
interest from home. We had been hit really badly by the recession so we | :21:27. | :21:31. | |
had no money to invest. My mum and my dad gave us the money, the | :21:32. | :21:37. | |
original start-up, 8500 year rose. She stopped is -- she had stopped | :21:38. | :21:47. | |
smoking and the money she saved she gave to us to stop the company. You | :21:48. | :21:53. | |
are selling in 150 countries around the world, you aren't really | :21:54. | :21:57. | |
established yet in the UK. We are getting there. We've been here for | :21:58. | :22:06. | |
about a year but we would be more in the small independent stores. There | :22:07. | :22:13. | |
are more levers up north. I think you're more cynical down this way. | :22:14. | :22:18. | |
What happens when your child realises it wasn't real? The way I | :22:19. | :22:26. | |
feel about it, it's very clear in my mind. Our keen unity of believers | :22:27. | :22:30. | |
would say the same thing. Imagination should be promoted, it | :22:31. | :22:35. | |
is part of childhood -- our keen unity. The benefits far outweighs | :22:36. | :22:46. | |
when they are ready to realise and move on. I think the benefit | :22:47. | :22:53. | |
outweighs the actual point. Do you have a fairy? Fairies are trained in | :22:54. | :23:01. | |
school to collect teeth so it's part of their duties! It's been | :23:02. | :23:04. | |
fascinating! My imagination is running wild. | :23:05. | :23:08. | |
In the UK - the Finance Minister, or Chancellor as he's known here, | :23:09. | :23:11. | |
Philip Hammond has defended his 2% hike on National Insurance | :23:12. | :23:13. | |
contributions, that's a form of tax that all employees have to pay that | :23:14. | :23:16. | |
go towards state benefits, insisting it will result | :23:17. | :23:18. | |
in the self-employed making a "fair contribution" to public services. | :23:19. | :23:21. | |
The Chancellor is coming under pressure from many | :23:22. | :23:22. | |
to rethink the tax change to 2.5 million | :23:23. | :23:24. | |
Speaking on the BBC's breakfast programme this morning | :23:25. | :23:31. | |
the Chancellor denied his critics that his tax policy | :23:32. | :23:33. | |
I don't accept that are all and we strongly support small businesses, | :23:34. | :23:44. | |
growing businesses, they are the bedrock of Britain's economy. We | :23:45. | :23:49. | |
will continue to encourage new ventures, innovation, growing | :23:50. | :23:54. | |
businesses in this economy. What we are dealing with here is a perverse | :23:55. | :23:59. | |
incentive in our tax and national insurance system which is driving | :24:00. | :24:04. | |
people who are essentially employees to turn themselves into | :24:05. | :24:07. | |
self-employed workers instead. That isn't good for them, it's not a | :24:08. | :24:12. | |
healthy thing for the structure of the economy to be driven by tax | :24:13. | :24:15. | |
advantages and tax differences. We've asked James to talk about his | :24:16. | :24:27. | |
paper's take on the Budget. I think there's a feeling that the | :24:28. | :24:32. | |
Chancellor has an wound manifesto pledges by David Cameron the former | :24:33. | :24:37. | |
Prime Minister. We aren't surprised to hear it are we? There has been a | :24:38. | :24:44. | |
change at the top but this is a government elected by the people in | :24:45. | :24:48. | |
2015. Although there's been a change in leadership and a changing | :24:49. | :24:52. | |
Chancellor, this is very much the same... This is very much the same | :24:53. | :25:00. | |
administration. Those pledges made in 2015... The reason for the anger | :25:01. | :25:07. | |
is the question, is this a fair closure of the gap between the | :25:08. | :25:11. | |
different the employed and self-employed pay in tax or is it an | :25:12. | :25:15. | |
attack on the risk-taking spirit out there? Our paper had the headline a | :25:16. | :25:24. | |
tax on enterprise. The Tory party supposed to stand up for people who | :25:25. | :25:28. | |
want to make money and better themselves. George Osborne earning | :25:29. | :25:33. | |
?650,000 for four days work a month. We asked viewers to get in touch | :25:34. | :25:40. | |
about this. We've had some input. Paul says, if you believe in | :25:41. | :25:44. | |
capitalism then George Osborne is allowed to earn what people are | :25:45. | :25:56. | |
willing to pay him. He is earning ?14,000 a day. | :25:57. | :26:00. |