:00:00. > :00:13.This is Business Live from BBC News with Rachel Horne and Sally Bundock.
:00:14. > :00:18.There are calls for a radical shake-up of corporate governance in
:00:19. > :00:20.South Korea as the former president is grilled over corruption. That is
:00:21. > :00:37.our top story. The boss of Samsung is already
:00:38. > :00:40.facing a trial so will Park Geun-hye face a similar fate in a case that's
:00:41. > :00:43.shone a light on the influence Some of the UK's top
:00:44. > :00:53.banks, including HSBC, hundreds of millions of dollars
:00:54. > :01:05.from an international money We will get the details and has it
:01:06. > :01:09.moved the markets? The FTSE close to record high territories. It keeps
:01:10. > :01:13.doing it. We will look at the figures in a minute.
:01:14. > :01:17.Would you pay to see a play - not live - but streamed to a cinema?
:01:18. > :01:20.Later in the programme we'll speak to the boss of a company hoping
:01:21. > :01:22.to bring the opening curtain to the silver screen.
:01:23. > :01:26.We would love to hear from you and get your views on stories we are
:01:27. > :01:35.covering today. Get involved. It's the scandal that's
:01:36. > :01:42.engulfed a nation. The ousted South Korean President
:01:43. > :01:46.Park Geun-hye is being questioned by prosecutors over the corruption
:01:47. > :01:50.scandal that brought her down. Mrs Park took the chance to again
:01:51. > :01:53.apologise for her conduct. She is accused of colluding
:01:54. > :01:58.with a friend to pressure the country's biggest
:01:59. > :02:00.companies to donate for In response, it's alleged that these
:02:01. > :02:03.businesses received favours But the scandal has also raised
:02:04. > :02:09.questions about the role of the so-called chaebols
:02:10. > :02:13.within Korean society. The word chaebol is a combination
:02:14. > :02:15.of the Korean words These influential
:02:16. > :02:21.groups of companies - that are often family run -
:02:22. > :02:24.include Samsung, Hyundai and Lotte group - all of which dominate
:02:25. > :02:26.the domestic economy. To put this in perspective,
:02:27. > :02:31.Samsung alone accounts for 30% of the entire value of the Korean
:02:32. > :02:34.stock market and its de facto leader - Jay Y Lea -
:02:35. > :02:37.has been charged in connection But there are dozens of other
:02:38. > :02:42.chaebols in the country. Another big worry for the economy
:02:43. > :02:44.is the government's claims that its biggest trading partner -
:02:45. > :02:48.China - is imposing economic sanctions on the country,
:02:49. > :02:51.over its decision to host the United States THAAD
:02:52. > :02:55.missile defence system. He is chairman of the TS
:02:56. > :03:11.Lombard's China team. Rachel touching on some key issues.
:03:12. > :03:15.There is a lot going on for South Korea and its economy, the
:03:16. > :03:20.businesses that work there but on the geopolitical stage as well with
:03:21. > :03:24.North Korea. If we focus on the chaebols, do you think this sort of
:03:25. > :03:30.perfect storm of an impeached president and the boss of Samsun,
:03:31. > :03:33.both on trial at the same time, will mean there will be significant
:03:34. > :03:39.change? It opens the door to significant change. The chaebols are
:03:40. > :03:47.all important in running South Korea's economy and run it in a
:03:48. > :03:51.closed system, without little external investor pressure, low
:03:52. > :04:00.dividends and so on, so this is a series of baronies which the health
:04:01. > :04:05.of the economy need to be addressed and the opposition are committed to
:04:06. > :04:10.doing that. The big shift would be if the Samsun boss ends up behind
:04:11. > :04:15.bars and is not pardoned because in the past bosses of companies, Samsun
:04:16. > :04:19.in the past, they have been pardoned. They tended to get away
:04:20. > :04:26.with it to put it mildly. The opposition which is well placed for
:04:27. > :04:29.the election in May is committed to change and I think there is a
:04:30. > :04:34.feeling in South Korea that the economy needs to be looked at
:04:35. > :04:39.because exports are not what they used to be. The stock market is
:04:40. > :04:46.doing well but there is a feeling it is time for reform. What about the
:04:47. > :04:49.issue of Chinese sanctions they say are happening as a result of the
:04:50. > :04:55.missile defence system? This makes everything more complicated. What
:04:56. > :05:01.has happened is because of the North Korean threat, South Korea is
:05:02. > :05:06.deploying a US anti-missile system. China sees it as a threat to China
:05:07. > :05:10.because it can contain Chinese missiles but more important the
:05:11. > :05:15.radar could go hundreds of miles into China and reach as far as the
:05:16. > :05:19.main Chinese missile deployment in north-eastern China and China is
:05:20. > :05:23.afraid of electronic spying. Rex Tillerson has just been in the
:05:24. > :05:28.region, trying to talk to all leaders to get a sense of where we
:05:29. > :05:33.are going and there is emphasis on the President, the Donald Trump
:05:34. > :05:39.administration and its role. What will be the outcome? The problem
:05:40. > :05:43.with this is the North Korean issue is one to which there is no evident
:05:44. > :05:48.solution. Rex Tillerson talked about military options on the table but
:05:49. > :05:54.the trouble is if the US tries to attack North Korea, most of its
:05:55. > :05:58.missiles, nuclear sites, are difficult to find underground, and
:05:59. > :06:03.the capital of South Korea is within artillery range of North Korean
:06:04. > :06:06.government. If you go the military route it is terrible but the
:06:07. > :06:08.diplomatic route has produced nothing. I know we will talk about
:06:09. > :06:16.this again. Thanks. The Japanese Prime Minister,
:06:17. > :06:18.Shinzo Abe, is in Europe for talks with senior
:06:19. > :06:22.European Union officials. The discussions will involve a trade
:06:23. > :06:30.agreement. Brussels is keen to boost trade
:06:31. > :06:32.with Asia, to take advantage of the more protectionist stance
:06:33. > :06:35.in the United States The US government is
:06:36. > :06:37.expected to announce that with immediate effect,
:06:38. > :06:39.it's banning certain battery-operated devices from cabin
:06:40. > :06:42.baggage on flights from a number of countries in the Middle
:06:43. > :06:44.East and North Africa. Speaking off the record,
:06:45. > :06:52.government officials said it would apply to devices
:06:53. > :06:54.larger than a mobile phone on nonstop flights from ten
:06:55. > :07:05.airports in eight unspecified One story that is all over the
:07:06. > :07:10.website this morning is the death of Martin McGuinness from Sinn Fein. He
:07:11. > :07:16.was 66 years old. He died this morning. He was Northern Ireland
:07:17. > :07:22.former Deputy First Minister. He started as leader of the IRA and was
:07:23. > :07:27.convicted for membership of the IRA but turned to politics, turned
:07:28. > :07:31.peacemaker, working at the heart of the power-sharing government
:07:32. > :07:32.following the Good Friday Agreement. A lot of tributes pouring in and
:07:33. > :07:35.more details on the website. Some of the UK's top banks inlcuding
:07:36. > :07:40.HSBC are being accused of processing laundering operation
:07:41. > :07:45.connected to Russia. The allegations are made
:07:46. > :07:50.in the Guardian newspaper. The banks named insist they comply
:07:51. > :07:52.with all regulations and operate Andrew Walker is in our
:07:53. > :08:06.business newsroom. Give us some more details. It is a
:08:07. > :08:12.striking story that's the Guardian has. They have seen thousands of
:08:13. > :08:18.documents founded investigation they say is led by police in Latvia and
:08:19. > :08:22.Moldova. 20 billion at least, they reckon the total figure could be
:08:23. > :08:29.more, of money laundered by criminals in Russia, with strong
:08:30. > :08:33.official connections. Of that money they reckon as much as 600 million
:08:34. > :08:38.may have been processed by British banks. To say it has been processed
:08:39. > :08:42.by them does not necessarily mean they know that, which is important
:08:43. > :08:47.to emphasise. They do not necessarily know it has gone through
:08:48. > :08:51.the accounts and they are keen to emphasise they comply with
:08:52. > :08:54.legislation. Of those banks, more than half the British psalm is
:08:55. > :09:05.alleged to have gone through HSBC, which also has a share traded
:09:06. > :09:10.overnight in Hong Kong. Precious little impact haps because traders
:09:11. > :09:16.are aware banks are at risk of this kind of thing being done through
:09:17. > :09:19.their recounts. It must be emphasised HSBC and the other banks
:09:20. > :09:25.say they do everything to comply with the law, but they are in a
:09:26. > :09:29.difficult situation. They are also accused of being excessively
:09:30. > :09:34.vigilant, of being too quick to close down accounts that have been
:09:35. > :09:41.held by various charitable religious organisations in the UK. It is a
:09:42. > :09:45.difficult judgment to get right. On the other side, HSBC has in the past
:09:46. > :09:49.had problems in the US and made a settlement of more than ?1 billion
:09:50. > :09:56.to deal with allegations of money-laundering in relation to a
:09:57. > :10:01.Mexican drugs cartel. A difficult spot for the banks. Thanks, Andrew.
:10:02. > :10:10.this week after a public holiday yesterday.
:10:11. > :10:19.hit a 21 month high while the dollar fell back a bit -
:10:20. > :10:22.that is unusual given that the Fed has just raised the interest rates -
:10:23. > :10:25.you would expect that to strengthen the dollar - but the markets
:10:26. > :10:27.were expecting to hear of more rises more quickly -
:10:28. > :10:56.banking stocks move today following that report Andrew shared.
:10:57. > :11:08.Let's go to Wall Street. Will Nike do it when it reports earnings? The
:11:09. > :11:13.world's largest footwear maker is struggling with competition such as
:11:14. > :11:18.Adidas. Nike and the Jordan Brand dominate the US market but rivals
:11:19. > :11:22.are gaining strength. FedEx will report earnings on Tuesday and
:11:23. > :11:27.investors will watch to see how the company managed costs through the
:11:28. > :11:33.crucial holiday season. Investors will look to see what steps FedEx
:11:34. > :11:38.will take to bring down the cost in the era of a rapid rise of
:11:39. > :11:39.e-commerce. It is the high costs that have brought down the FedEx
:11:40. > :11:43.profit margins. Joining us is Jane Foley, senior
:11:44. > :11:54.currency strategist, Rabobank. We have been touching on issues in
:11:55. > :11:58.the markets. What is your sense of where we are? We have a falling
:11:59. > :12:01.dollar and activity in the bond markets and it would seem the fear
:12:02. > :12:08.factor is creeping back. There are lots of things will stop the Donald
:12:09. > :12:14.Trump theme has given way to disappointment with the market more
:12:15. > :12:18.about protectionism. The idea after Donald Trump's election that he
:12:19. > :12:23.could bring growth to the economy and inflation, that is taking a step
:12:24. > :12:28.back with a market thinking he cannot get that through perhaps
:12:29. > :12:34.until the end of the year. Janet Yellen raised interest rates, the
:12:35. > :12:39.head of the Federal Reserve, but she also suggested perhaps she may not
:12:40. > :12:44.be hiking as quickly as some expected. On inflation, yes there is
:12:45. > :12:47.inflation but not the crucial demand led inflation still which is
:12:48. > :12:54.something the markets are looking for. Talking about inflation, it
:12:55. > :12:57.impacts the bond market. For years they went strong and over the last
:12:58. > :13:03.couple of years people are going, I think it is coming to an end. Do you
:13:04. > :13:07.think it is time now inflation is creeping in? It might be but we have
:13:08. > :13:12.to see it in the context of the inflation we have. We have more but
:13:13. > :13:17.generally on the back of higher energy prices, which acts like a tax
:13:18. > :13:21.on our pockets. They do not make us spend more money, we have to spend
:13:22. > :13:25.more money but not because we have higher wages, which is what is
:13:26. > :13:31.missing, wage inflation is low and without the demand, demand led
:13:32. > :13:36.inflation will be subdued. We have little bits of inflation but not
:13:37. > :13:40.runaway inflation and so it could be bond yields or longer-term interest
:13:41. > :13:45.rates creeping higher but not running away. Jane will come back
:13:46. > :13:48.later. She has more work to do looking at some of the other
:13:49. > :13:52.business stories. We will be speaking to the boss of a company
:13:53. > :13:58.hoping to bring the theatre's opening curtain to be dashed back to
:13:59. > :14:00.the silver screen. It has been announced
:14:01. > :14:02.that the former deputy first minister of Northern Ireland,
:14:03. > :14:04.Martin McGuinness, has died. He retired from Stormont
:14:05. > :14:07.in January for health reasons. He was a key figure in Northern
:14:08. > :14:10.Irish politics over recent years, Our political correspondent
:14:11. > :14:23.Chris Mason has more. What is striking about Martin
:14:24. > :14:27.McGuinness is his entire life and political career was dedicated to
:14:28. > :14:31.one aim and that was to remove the power of this place, Westminster,
:14:32. > :14:36.the home of the British Parliament and British Government from Northern
:14:37. > :14:39.Ireland. He referred to it as the North of Ireland, he wanted the
:14:40. > :14:45.reunification of Ireland, but what is striking is how his method for
:14:46. > :14:50.doing that to change radically as we saw in the report we have just
:14:51. > :14:57.played. Someone who spent his early years as an IRA commander, a
:14:58. > :15:03.commander of the IRA, who saw it as their mission statement to try to
:15:04. > :15:09.drive the British out of Northern Ireland and to use violence to do
:15:10. > :15:13.so. The contrast between that and in his later years someone who
:15:14. > :15:17.commanded the political stage as the Deputy First Minister of Northern
:15:18. > :15:22.Ireland, and had an incredible personal relationship with Ian
:15:23. > :15:27.Paisley, the First Minister, the two people from as far apart validity in
:15:28. > :15:31.terms of Northern Ireland battles as you could imagine that they were
:15:32. > :15:36.known as the Chuckle Brothers, such was the warm nature of their
:15:37. > :15:40.relationship and as we saw, Martin McGuinness happy to speak out when
:15:41. > :15:43.necessary against splinter organisations within the republican
:15:44. > :15:47.movement who carried on using violence against the wishes of Mr
:15:48. > :15:51.McGuinness and others within Sinn Fein.
:15:52. > :15:56.So that was the big story that broke in the early hours of the morning,
:15:57. > :16:01.the fact that Martin McGuinness has died at the age of 66. There will be
:16:02. > :16:04.more korchl throughout the day on the BBC News Channel as tributes
:16:05. > :16:07.start to come in. In the meantime n terms of business, we've mentioned
:16:08. > :16:11.it, a big day for the UK in terms of the inflation figures. Yes, the
:16:12. > :16:14.inflation figures are out today in the UK. It is answerings siting time
:16:15. > :16:24.for inflation. There is a new measure. Instead of the CPI, it is
:16:25. > :16:32.the CPIH. It includes more housing costs and council tax... Does it
:16:33. > :16:41.include carrots? Carrots and garlic! Keep an eye on it. It's exciting!
:16:42. > :16:49.You're watching Business Live - our top story.
:16:50. > :16:59.Let's look at how the markets are faring. The FTSE is ticking up as is
:17:00. > :17:02.the DAX and the CAC. We were speaking earlier with Jane about
:17:03. > :17:06.markets. Everyone is watching the Fed to see how many more rate hikes
:17:07. > :17:16.will be coming and we'll keep you updated on that.
:17:17. > :17:18.Now let's get the inside track on Event Cinema.
:17:19. > :17:21.It's where cinemas are used to display a varied range of live
:17:22. > :17:23.and recorded entertainment, beyond the expected
:17:24. > :17:27.Over the last few years its grown in popularity all over the world.
:17:28. > :17:30.The global gross revenue generated by event cinema was estimated to be
:17:31. > :17:38.But by 2019 it is expected to surpass $1 billion.
:17:39. > :17:42.The genre has expanded to include opera, ballet,
:17:43. > :17:51.And it could be the saving of traditional cinemas.
:17:52. > :17:58.He's the chief executive officer for Piece of Magic Entertainment.
:17:59. > :18:05.It sounds like a piece of magic to me. It sounds great. I have to say,
:18:06. > :18:09.can I speak for you Rachel? Go for it. We don't get to the cinema
:18:10. > :18:15.often. We've got three little kids each. It is not an event we do
:18:16. > :18:20.often, but it sounds like a piece of magic, but you've got to sell it to
:18:21. > :18:25.us because I would go to see the Hollywood Blockbuster if I got a
:18:26. > :18:29.chance? You get to see a live broadcast of the metropolitan opera
:18:30. > :18:34.or a live ballet from Moscow. That's the idea of event cinema is to allow
:18:35. > :18:38.you to go to your local cinema and experience something exclusive live.
:18:39. > :18:45.So you are sitting on a Saturday, midday in the cinema and at the same
:18:46. > :18:48.time in New York, you have the metropolitan Opera performing.
:18:49. > :18:52.That's really the idea. This is not streamed elsewhere. This is
:18:53. > :18:58.exclusive viewing? It is exclusive to cinemas. You only have one chance
:18:59. > :19:02.or a couple of days to watch this content at the cinema. What brought
:19:03. > :19:10.this change around? It is to do with technology? The conversion from
:19:11. > :19:15.analogue to digital cinema technology which means they can
:19:16. > :19:20.receive live content and it allows producers to release content more in
:19:21. > :19:23.a cost effective way. You have the shift in the industry of cinemas
:19:24. > :19:27.going to digital allowing really for the event cinema industry to grow.
:19:28. > :19:31.How successful is it? We mentioned some statistics there. But from the
:19:32. > :19:38.point of view of your company, how successful is this? Well, it has
:19:39. > :19:43.been extremely successful. For example, for one of the artists who
:19:44. > :19:48.has really embraced event cinema. He reaches more than 100,000 people for
:19:49. > :19:58.one of his concerts. So that shows that for him, it is a very good way
:19:59. > :20:03.to liaise with his audiences. We're watching him now. This is not live.
:20:04. > :20:08.You've worked with One Direction? Yes. You're streaming that in all
:20:09. > :20:13.the big named cinemas in Europe... Everywhere. What about other regions
:20:14. > :20:17.in the world? Where else are you moving into it? With One Direction
:20:18. > :20:20.we are in almost 78 countries. That was really big, but the exciting
:20:21. > :20:27.development that we will see is Latin America. And the hope is
:20:28. > :20:30.obviously Asia and China which is a little bit more complicated with
:20:31. > :20:35.regulations, but that's really the hope that the markets will open up.
:20:36. > :20:39.This is extends to other things. Could gu into sport or gaming? It
:20:40. > :20:43.really depends on the market. Sport in the UK is quite difficult because
:20:44. > :20:47.of the licence and the rights. But in Latin America, it is very
:20:48. > :20:52.popular. I do think that event cinema is the kitchen of where you
:20:53. > :20:56.can try new things. That's how I see it and that's our responsibility to
:20:57. > :21:00.look at new ways of bringing content to the big screen. What's the last
:21:01. > :21:09.event you went to, event cinema? What did you see? A ballet which is
:21:10. > :21:13.great because it's live from Moscow and you are sitting in your local
:21:14. > :21:16.cinema. When it comes to ticket prices, what are you talking about,
:21:17. > :21:21.the price for the cinema, that's going to be less than watching the
:21:22. > :21:25.ballet live? It is affordable. So on average the ticket price is higher
:21:26. > :21:31.than your average ticket price, but it is more affordable than going to
:21:32. > :21:37.the venue itself. Caspar, thank you, if I can get a baby-sitter maybe
:21:38. > :21:43.Rachel and I can go together. If you want to babysit, tweet us. Don't!
:21:44. > :21:45.From self-driving buses to delivery drones -
:21:46. > :21:47.this week the northern German city of Hanover becomes the centre
:21:48. > :21:50.of the tech world, with the CeBIT trade fair, at which some 3,000
:21:51. > :21:52.exhibitors from 70 different countries will
:21:53. > :22:03.A photo opp and a renewed commitment to open trade from Angela Merkel
:22:04. > :22:04.and Japan's Shinzo Abe and the opening of
:22:05. > :22:10.On display, the latest in automation including some
:22:11. > :22:17.products that could transform the world of work.
:22:18. > :22:20.Now like many children, I grew up with a dream of one day
:22:21. > :22:23.driving a digger like this but if that is ever to happen,
:22:24. > :22:26.I'm going to get a move on because this is an autonomous
:22:27. > :22:30.digger and it can do all of the dirty work itself.
:22:31. > :22:34.It doesn't need a driver to operate it and it uses sensors to get a map
:22:35. > :22:40.of the environment and then the operator can specify a region
:22:41. > :22:43.where to dig based on this map and the digger drives to this region
:22:44. > :22:46.and then autonomously digs whatever is specified.
:22:47. > :22:59.This won't be the end of human digger drivers, of course.
:23:00. > :23:01.You always need a person which programs the task
:23:02. > :23:04.for the digger and tells the digger where to go and what
:23:05. > :23:07.Now, not all robots are here to take your job.
:23:08. > :23:10.This one over here could become your next colleague and what's more,
:23:11. > :23:14.you can control it from halfway around the world.
:23:15. > :23:17.Now imagine my colleague operating the robot with the exoskeleton
:23:18. > :23:19.being located on earth and the robot being located on the
:23:20. > :23:23.Now, the robot could perform regular maintenance tasks
:23:24. > :23:32.Shooting for the stars is one thing, but back on Earth,
:23:33. > :23:44.robots may not be able to beat humans at their own game just yet.
:23:45. > :23:51.What we need is an automated baby-sitter, do you think?
:23:52. > :23:54.Definitely. Jane has returned to discuss the
:23:55. > :23:59.stories out there. This story is something that broke overnight. It
:24:00. > :24:03.is not official yet, but it has been widely reported that the US
:24:04. > :24:06.Administration will announce today a ban on electronic devisds on flights
:24:07. > :24:10.from eight majority Muslim countries? That's right. But only
:24:11. > :24:13.from non-US carriers too. Now you can still take your laptop etcetera,
:24:14. > :24:19.but it has got to be in the hold. The only thing that you can take on
:24:20. > :24:23.the flight or on the deck with you is your mobile phone. So this is
:24:24. > :24:29.going to upset a lot of business travellers. It raises a lot of
:24:30. > :24:33.questions, why have they sudden by done this. There has been
:24:34. > :24:38.speculation, there has been some tip off, hopefully we'll get clarity
:24:39. > :24:43.when this is announce the later on, assuming it is announced. It led to
:24:44. > :24:47.disconcerning reports, why have US carriers being allowed to carry on.
:24:48. > :24:52.Why is it just from certain carriers? Some, Emirates for
:24:53. > :24:56.instance will be particularly heavy hit, 119 flights a week between
:24:57. > :25:01.Dubai and the US. That's a lot of customers that they're going to
:25:02. > :25:05.upset. There is another story in the Financial Times, UK retailers axe
:25:06. > :25:09.low skilled workers as higher wage bill bites. This was a concern when
:25:10. > :25:12.the Living Wage and the extra wage increases were pushed by the
:25:13. > :25:14.Government that it would affect the lower skilled workers? Yes, there is
:25:15. > :25:20.a lot of different parts to this story. The first thing is that in
:25:21. > :25:23.economic theory you raise wages, then you need less workers or you
:25:24. > :25:28.employ less workers. This is the first thing. A lot of workers like
:25:29. > :25:31.this report are saying in addition to companies concerned that they
:25:32. > :25:36.will have to sack workers in order to pay the bills. Some companies are
:25:37. > :25:40.concerned that the extra wage costs could wipe out their profits too,
:25:41. > :25:44.but there is concern that as wages go up, then firms are going to use
:25:45. > :25:49.machinery instead of workers. The rise of automation. The robots are
:25:50. > :25:52.back. Jane, thank you. That's it from Business Live for another day.
:25:53. > :25:56.There will be more business news throughout the day on the BBC live
:25:57. > :26:05.web page and on World Business Report. See you soon.
:26:06. > :26:12.Hello there. After the mild weather we've had recently today brings a
:26:13. > :26:15.reminder that it is only March. Very early in the spring, a cold feeling
:26:16. > :26:17.day with a mixture of sunny spells and showers.