03/04/2017 BBC Business Live


Similar Content

Browse content similar to 03/04/2017. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News with Sally Bundock and Alice Baxter.


A critical week for South Africa - as its parliament considers


a vote of no confidence in President Zuma,


we talk you through what is at stake.


Live from London, that's our focus on Monday the 3rd of April.


Protests are expected in South Africa this week,


and its currency, the rand, is out of favour,


after Jacob Zuma fired his respected Finance Minister in a dramatic


cabinet reshuffle, so where next for one


We are live in Johannesburg for the latest.


it could be a third strike and out for Toshiba.


The Japanese tech giant's shares plunged again on speculation


it will miss its reporting deadline for a third time.


And financial markets have just opened in Europe, we talk you


through what is moving and why and weigh up the latest prediction


that the pound sterling is due for a bounce back.


We'll be getting the Inside Track on a business which hopes


to provide young companies with cheap renewable energy.


how green is your energy, and does it matter?


Or when it comes to choosing a supplier,


Let us know, just use the hashtag #BBCBizLive.


It is a packed agenda as per usual, so let's get started.


We begin in South Africa, where President Jacob Zuma is under


pressure because a no-confidence vote in his leadership


is being considered by the parliament's speaker.


It's because of the contorversial cabinet reshuffle last week


which saw the respected Finance Minister Pravin Gordhan


and many other cabinet members sacked.


Within hours of Mr Gordhan's removal,


the South African currency, the rand, fell sharply


and was down over 5% against the dollar for the week.


There have been further falls this morning.


The share markets were also impacted, seeing


with government bonds and banking stocks falling hardest.


Mr Gordhan's successor, Malusi Gigaba,


has called for a radical transformation of the economy,


but as yet there are few details of what his plans are.


However, it is likely the cost of borrowing will increase further.


And that is because of a likely downgrade


by the credit ratings agency Moody's.


It is due to deliver its verdict on Friday.


Many analysts now predict South Africa


All eyes on Friday for that announcement.


Lerato Mbele joins us from our Johannesburg bureau.


After there's sacking on Thursday, we have just talked through the


immediate economic aftershock, talk me through how the rand, the local


currency, and the local markets are faring today. Hi, Alice, thanks for


that. The South African currency, obviously, is the most traded


currency from the African continent, one of the leaders in the emerging


markets space, so obviously a lot of speculation on the currency at the


moment. It has dropped, as Sally said, by more than 5%, and a further


0.5% this morning, and no analyst is expecting the rand to recover,


certainly until we have clarity on what the economic programme is going


to be going forward. As was said earlier on, the new minister, Malusi


Gigaba, has said he is going to pursue a radical economic


transformation agenda in the Treasury, make sure that the


government spends much more on supporting small and medium


enterprises, creating black industrialists, and giving more


money to the poor. You get a sense that the policy will be leaning left


a lot more than it already is, and if so, you can expect less fiscal


consolidation and more of the government spending than saving. If


you add to that everything that is happening into international


markets, with Iran declining in value, spread elation on the rand,


and jitters around the prospects for the South African economy, the


picture is not looking good. -- speculation. Government is not able


to sell its debt as favourable prices, bond deals have gone down,


gone up more than 50 basis points, so anybody buying South African debt


will be making a lot more money, and the Government will be paying a lot


more on those issue inserts. In terms fiscal consolidation, South


Africa is staying the course of managing its finances, and more


importantly drawing in investment for growth. Those prospects aren't


looking good, and the mood in South Africa right now is damp. As you


say, bullish talk from the new finance minister, Malusi Gigaba, but


a bit more on the mood in the country, there has been talk of


protests due to happening, murmurings about a vote of no


confidence. Yeah. Well, the speaker of parliament would have to


reconvene parliament, which is in recess until May, so she cut short a


working visit to Bangladesh and landed in South Africa yesterday,


considering whether to reconvene the parliament, where a vote of no


confidence would be heard. She says it is possible but she's still


considering. Civic society is frustrated, there have been protests


at the Treasury, there has been calls for a mass public strike on


Friday, and other people are saying that they just want to go to work to


earn a living, that pays the taxes to a government that they believe


hasn't really earned its place. So that is really how people are


feeling. OK, thank you for joining us live from Johannesburg. We will


keep an eye on that story and update you with any news.


In a record quarter, Tesla delivered just over 25,000


cars in the first three months of the year.


The electric car maker said this was a 70% rise


It is a rebound for the US company after production problems


late last year resulted in a 9% fall in deliveries in the fourth quarter.


The UK based chip designer Imagination Technologies


says Apple will stop paying the company royalties when it moves


away from using its intellectual property in two year's time.


Apple is responsible for around half of Imagination's revenues.


The Silicon Valley giant uses the chip-maker's technology


BP is selling one of its major North Sea oil assets for $250 million.


Ineos will buy the Forties Pipeline System in a deal which also includes


the terminal which delivers more than a third of the UK's


Ineos has welcomed it as a new opportunity, whilst BP says


it is looking to concentrate on other parts of the North Sea.


That's because of reports that the troubled Japanese conglomerate


may delay its quarterly earnings report for a third time.


Sarah Toms is in our Asia Business hub in Singapore.


through the numbers. As you said, Toshiba shares did plunge, 5.4% on


Monday, and as you said, it is after the electronics conglomerate


signalled it might miss another deadline to release its results for


the last quarter of 2016. Now, Toshiba can apply to the Tokyo stock


exchange for another extension, but still, the delay is bad news for


shareholders, delivering another blow to investor confidence, and of


course increasing those concerns over a possible delisting. They have


delayed reporting earnings over problems at Westinghouse Electric,


its US nuclear unit. Westinghouse has been hit by cost overruns and


filed for bankruptcy last week, and as a result Toshiba forecast an


annual loss of a record 9.1 billion US dollars. To make up for this


loss, the company is putting its prize memory chip unit up for sale,


and bidders are queueing up - Apple, Amazon and Google was said to be


interested. That is the very latest on Toshiba once again, moving in the


wrong direction, as Sarah said, down over 9% at one pit -- at one point


this morning. Business sentiment went up in March by quite a big


amount, which is really interesting to know that the big corporate in


Japan are more optimistic than they have been for some time. That is


Howard went in Asia today, that is how the Dow Jones closed on Friday.


Let's have a look at Europe right now to give you a sense of how


things are developing, belly flat, down in France, no big movers.


Imagination Technology is a massive mover, a UK tech company that has


had royalties with Apple, but Apple saying that the relationship may


come to an end, and the shares are down 60%, I believe, a massive


mover. We will talk more about the stories in a moment.


Michelle Fleury has the details about what's ahead


It's a busy week ahead, with President Trump meeting Chinese


leader Xi Jinping in Florida, as well as lots of economic data.


On Tuesday, new numbers will show that the trade deficit likely


On Wednesday, we get a look at private sector hiring,


with a report from payrolls processor ADP.


But of course the big number comes on Friday,


that is the Labor Department's closely watched employment report,


which is expected to show an increase


major car-makers will release new vehicle sales figures for March.


Now, auto companies have been enjoying


a great run of rising sales, so investors and analysts are keenly


watching to see whether the wheels are coming off the present


Joining us is Nick Hungerford, founder of Nutmeg.com.


Good morning, Nick! Sterling has been having trouble s, but some are


saying it is undervalued. Well, it takes two to make a trade, but we


are seeing a record number of bets on the fact that sterling remains


overvalued. But after the Brexit vote, sterling fell to its lowest


level against the dollar since 1985. This quarter that has just finished,


that has been the first quarter of rebound for still in since then, so


you have got people coming out of the woodwork saying, yeah, now is


the time to trade, we're going back to where we were, and is forecast


says that in 18 months we could get back to about 1.38 against the


dollar. But it could all change very quickly if the Brexit negotiations


look like they are not going well, or if something is leaked from


somewhere, sterling is going to be extremely sensitive. Three key


factors driving world currencies, and we think about sterling, the


euro-dollar mix-up, political risks from Europe and what happens with


sort of any potential defaults, and payments, overpayments et cetera.


You have got what will Trump do, with his policies be protectionist?


Will they reduce global free trade? And then of course the Brexit


negotiations. All of this has affected and impact the currency


markets. Sensitive is exactly the word, isn't it? We are coming up to


the end the quarter, so corporate earnings. They have been pretty


positive, but they have set some lofty valuations are the markets.


Global markets, as the widest measure we can get, the MSCI world


measure, up 6.4% last quarter, which is a fantastic quarter. If you take


emerging markets in particular, looking at this, astonishing, 12.3%.


When will the bubble burst, or is it not a bubble? Well, back to Alice's


point, if corporate inning start to disappoint, if the talks between


America and China this week do not go well, we will see some pretty


sharp falls in the market. Remember, of course, this is a long-term game,


and what is driving these markets is the momentum we are seeing across


the politics and economics, rebounds in manufacturing, particularly in


China, driving this demand. So it seems positive at the moment, but we


are on a bit of a knife edge waiting for is to come out. How long have we


been and knife edge? It feels like a long-time! Are we getting


comfortable? Great to talk to you, we will talk about the papers later.


Still to come, we'll get the inside track on how


to power business with cheap renewable energy.


Yes, you're with Business Live from BBC News.


We have got an energy theme in today's programme.


New research reveals that decommissioning oil and gas wells


in the North Sea is set to cost ?80 billion across the UK, Norway,


The Boston Consulting Group warns that figure could


It's director of Energy Practice, Philip Whittaker joins us now.


This is a huge sum of money. Is it being spent wisely? Who is going to


foot the bill? It is the biggest industrial project that most of the


general public has never seen. We hear a lot about HS2 and Hinkley


Point, but this is something which over the next decade will be


absolutely on the same size of those projects yet the public will foot


half the bill and very few are aware. So what are you saying in


your report that's out today that needs to be done? I understand that


you're saying it will cost double or triple that that we think at the


moment? The current cost estimates could easily double or triple.


Firstly, we need to get more transparency into the market. We


need to get a better view of when we will be doing things and how much we


will be spending? Secondly, we'd love to see for consistency about


the way we are promoting the xhishging activity. The more you do


something, the better you get. Finally, we'd love to see a stronger


performance agenda. We'd like to see operators competing and the


Government making demands around efficient spend around the


decommissioning space. You're critical in your report about the


way in which the decommissioning is being conducted. You think there


isn't enough transparency, it isn't clear enough in which the process is


being done? We think it is a fantastic opportunity for UK


operators and for the UK taxpayer and also very importantly for UK


suppliers. If we can establish the UK as a base for decommissioning


expertise that opens up a big global market for the 9,000 platforms that


will be decommissioned globally in the next half a century, we're


optimists, but critical optimists. Thank you for your time. Just


mentioning that story about imagine deck knolling, shares down over 65%.


Apple dealing a blow to the UK tech firm notifying it will stop using


its products. More details on our website.


You're watching Business Live. Our top story:


South Africa's rand has fallen again amiden amid the fall-out of last


week's Cabinet reshuffle. They are on an Easter recess, but will


Parliament be reconvened? A look at the markets. That's how they are


faring at the moment. Starting a business


is a risky decision for any In the absence of a proven track


record, start-ups face higher costs for things like loans


and technology, but the cost of energy can also provide a barrier


to entry for new businesses. A recent report found that small


and medium-sized enterprises are losing $625 million a year


on overpriced contracts. And a separate report has found that


more than 60% of small business owners in the UK interviewed last


year don't regard energy efficiency Squeaky Clean Energy


is a marketplace which connects companies with renewable energy


providers. We're joined by Chris Bowden,


founder of Squeaky Clean Energy. Good to see you. Good morning. That


was the keyword, isn't it, market place? Yes. This is a clean energy


market place that you're setting up, targeting small and medium sized


businesses? We connect renewable or clean generators, solar, wind, high


dread and sustainable biomass. We connect them to corporate businesses


so they can supply those businesses at a similar price or lower price


than fossil fuel or what we call dirty electricity. But this isn't


about saving money. This is about being able to choose clean energy?


Well, it is about saving money because a lot of clean energy


contracts or renewable energy contracts are sold at a premium to


dirty energy contracts people and so, so what we are trying to do is


being the catalyst to shift businesses to renewable energy by


providing a price which is at or below the big six who dominate the


industry after 27 years of competition. If I am he a small


business and I think I've never heard of this company, but I'm going


to consider them, but one of my thoughts would be what if they can't


supply? What if there is a massive surge and there is just, you know,


the supply isn't there and also how do I know that it's clean? Well, to


answer those two questions, the first one is how do we always


guarantee that we always supply you? Well, we have a deal with Europe's


largest renewable generator so they top-up the supply from the largest


portfolio of renewables in the UK. If the wind farm or the solar park


that you've chosen to supply you isn't supplying at the time because


it is not windy or it's not sunny then we will guarantee to top that


up. In terms of the cost, we're basically buying that electricity at


market prices and that's the same for coal or gas. The issue is not


the cost, it is about how do we know it's really green? When we meter the


electricity into the network we stamp each kilowatt with our unique


identifier and when we meter it out, we do the same so we've connected


the consumption to the generation basically. And that's how you as a


business can demonstrate that you have bought electricity from that


specific wind farm. This company is very, very new, it launched it


January, you have been in the industry for 20 years? I have been


in the industry in the UK and been in the industry for that long and I


have been actually this concept isn't a new concept. It is something


we dreamed up over ten years ago and this is the way that companies like


Google and Apple and Facebook buy their electricity. How are you going


to persuade people to switch? This is a problem with domestic


households with normal energy companies? There is so much choice


out there and people don't switch from the big six? Well, there is a


number of things. We have tried to create a different ated product by


saying we can give you clean energy for the same price as dirty. If


you're faced with the choice of switching from dirty energy to clean


energy, you will do so. A lot of businesses want to move away from


the big six because of the services that they get from the big six and


the fact that they're trying to or lots of businesses want to different


ate themselves and attract customers. Chris, thank you for


coming on. Rising property prices are making it


hard for young people to get on the property ladder.


Stephen McDonnell sent this report from Beijing.


It's the start of the evening rush hour here in Beijing and this city's


young workers are pouring out of the towers above and into


In their millions they will join the commute to the outer suburbs.


There is no way that most young people here could afford


In fact, it's hard to imagine how most of them could ever afford


to buy a property anywhere in this city.


It's true there are plenty of cities in the world


where property is expensive - Sydney, Paris,


Here, the flats might cost just as much, but people's salaries


The government is trying to reign in this price explosion by limiting


access to credit In the hope that China's young workers may one day be


Nick is back. This story from the Financial Times, it is what Sally


was talking about earlier. Are they making any money? Well, they are not


making money and it is not that many cars. Really, compared with some of


the big manufacturers, 25,000 isn't much. It did beat expectations?


predicting and lots of anticipation predicting and lots of anticipation


because the Model 3, so we have got the Model S and the Model X and this


is the reasonably priced car, it is around ?28,000. ?30,000. That's a


mark down from what's around on the market. It is the mass market,


Tesla, but will they deliver on time this summer? There is so much


anticipation? It is remarkable what Elon Musk has been able to convey


with this mission of his. He's talking about 500,000 this year. The


share has gone up 30%. He is a brand in himself, Elon Musk. Thank you.


Good morning. Most of the weather action will be


at the beginning of the week. It looks like it will be a quiet week


ahead. Over


Download Subtitles