:00:00. > :00:07.This is Business Live from BBC News with Aaron
:00:08. > :00:13.Toshiba's troubles continue - the Japanese giant faces
:00:14. > :00:16.the prospect of being delisted from the Tokyo Stock Exchange.
:00:17. > :00:33.Live from London, that's our top story on Tuesday 11th April.
:00:34. > :00:37.Toshiba isn't the only Japanese company which is
:00:38. > :00:40.struggling to stay afloat - later in the programme,
:00:41. > :00:45.we'll look at the issues facing some of the country's biggest names.
:00:46. > :00:51.The business community has been reacting to THIS video
:00:52. > :01:01.of a man being dragged off a United Airlines flight.
:01:02. > :01:03.Come fly the friendly skies... Or not!
:01:04. > :01:10.We'll bring you full details later in the show.
:01:11. > :01:18.And we give you an update on the markets. The looming French
:01:19. > :01:20.election, we will tell you for that is doing to investors.
:01:21. > :01:24.When will driverless cars become a reality -
:01:25. > :01:28.I get the inside track from the Intel boss heading
:01:29. > :01:42.up the tech giant's new driverless car division.
:01:43. > :01:49.And as Aaron said, that United Airlines video is going viral around
:01:50. > :01:54.the world, will be an airline ever redeem itself and what do you think
:01:55. > :01:57.the passengers should get? Tell us your thoughts.
:01:58. > :02:03.Let us know, use the hashtag BBCBizLive.
:02:04. > :02:06.That poor bloke, he should be getting first-class for the rest of
:02:07. > :02:09.his life, that's what I say! We start with the
:02:10. > :02:12.troubles at Toshiba. The company is expected
:02:13. > :02:17.to publish its results for the last quarter of 2016 today,
:02:18. > :02:20.after postponing them twice. And they are expected
:02:21. > :02:26.to be disastrous. The numbers have already been
:02:27. > :02:35.spilled twice. -- been postponed. We hope to no mere
:02:36. > :02:37.after a press conference Recently Toshiba announced
:02:38. > :02:40.that its losses would TRIPLE as a result of difficulties faced
:02:41. > :02:46.by its US Westinghouse division. The company's US new-clear division
:02:47. > :02:49.has suffered huge cost over-runs at two projects in Georgia and South
:02:50. > :02:54.Carolina. Since Toshiba told us these
:02:55. > :03:05.numbers would be awful... Take a look at what investors have
:03:06. > :03:07.in doing. They have been sucking their money out of the country. And
:03:08. > :03:09.the company. The company's share price
:03:10. > :03:10.has more than halved. There are fears that Toshiba
:03:11. > :03:13.could be de-listed from the main Tokyo Stock Exchange if it reports
:03:14. > :03:16.another set of disappointing The issues faced by Toshiba
:03:17. > :03:20.highlights Japan's problem Some experts argue that the central
:03:21. > :03:29.bank is making it too easy for Japanese firms to access funding
:03:30. > :03:32.and this is providing an artificial lifeline
:03:33. > :03:47.to unprofitable businesses. You have to ask yourself, as an
:03:48. > :03:53.outsider, what are the problems and why have all these problems hit
:03:54. > :03:57.Japan, corporate Japan? You think about the household brands that we
:03:58. > :04:00.all used to use and love? What has gone wrong?
:04:01. > :04:02.The BBC's Rupert-Wingfield Hayes has been to investigate -
:04:03. > :04:18.These were the greatest rounds in consumer goods for decades. Toshiba,
:04:19. > :04:22.Panasonic, Hitachi, Sony... How did we end up here? First of all the
:04:23. > :04:26.Chinese and the Koreans came along and they could make these things
:04:27. > :04:30.just as well but much cheaper. Worst of all and most importantly these
:04:31. > :04:34.Japanese companies lost their Mojo, they forgot how to innovate. The
:04:35. > :04:36.country that invented the Walkman did not go on to invent the
:04:37. > :04:47.smartphone. Inside a vast exhibition hall more
:04:48. > :04:52.than 3000 new recruits are being inducted into one of Japan's big
:04:53. > :04:58.corporations. A lot of these young people can expect to spend the whole
:04:59. > :05:04.of their career in this one company. It will we come their second home.
:05:05. > :05:10.They'll expect to work hard, long hours and wait their turn for
:05:11. > :05:16.promotion. It's a model does work well for Japan in the past but it
:05:17. > :05:21.has real problems. In this rigid corporate hierarchy promotion is
:05:22. > :05:27.based on age, not on talent. It's a culture that is resistant to change
:05:28. > :05:32.and bad at producing new ideas. Japan's big corporations realised
:05:33. > :05:40.they had to change to survive and Toshiba decided to bet on nuclear.
:05:41. > :05:41.In 2006 it went out and bought Westinghouse five years later, this
:05:42. > :05:56.happened. But this behind me here, this is me,
:05:57. > :06:00.inside the Fukushima plant four years ago... This changed
:06:01. > :06:02.everything, many companies deciding they did not want anything to do
:06:03. > :06:07.with nuclear power and those that did insisted any new plants must be
:06:08. > :06:11.much safer the cause of that, they work going to be much more expensive
:06:12. > :06:19.than bad is the root of Toshiba's current financial disaster. -- and
:06:20. > :06:24.that is. Toshiba is not alone. Other famous Japanese names have been
:06:25. > :06:30.through deep crises, last year Sharp was told to a Taiwanese company, now
:06:31. > :06:34.Toshiba will be broken up, it's best it's sold off to the highest bidder.
:06:35. > :06:46.Rupert Wingfield Hayes, BBC News, Tokyo.
:06:47. > :06:49.Well lets talk more about this with Makoto Itoh, he's a professor
:06:50. > :06:55.A warm welcome to the programme, I and a member of the Japan Academy.
:06:56. > :06:59.A warm welcome to the programme, I am interested first and Toshiba, the
:07:00. > :07:09.figures delayed once again, what is your take on what we might hear from
:07:10. > :07:17.Toshiba? Hello! I suspect he perhaps cannot hear us... No, I hear you.
:07:18. > :07:21.Good to establish communications, I am just going to try again because
:07:22. > :07:26.we wanted to pick up on what happens in terms of Toshiba and I wonder if
:07:27. > :07:35.you can give me your take on the fact that the results have been
:07:36. > :07:52.delayed twice so what happens next? I think they decided this morning in
:07:53. > :08:03.Tokyo to disclose Q3 delayed reports of last year until December. And
:08:04. > :08:13.they could not get approval from the audit corporations but decided to
:08:14. > :08:21.announce the report openly. They feared that more delay would
:08:22. > :08:34.endanger their position in the stock market. So they decided to disclose
:08:35. > :08:50.this afternoon the huge loss of probably tell $1 billion. -- $10
:08:51. > :08:53.billion. And probably they tried to restructure the financial position
:08:54. > :08:59.from there. We are having some problems about being able to hear
:09:00. > :09:03.you so we are going to cut this short but I thank you so much, we
:09:04. > :09:10.will try to establish that line if we can. Shall we touch on some of
:09:11. > :09:13.the other stories? A bit of a car theme.
:09:14. > :09:16.Japanese carmaker Toyota says it's spending 1.3 billion dollars
:09:17. > :09:20.on its plant in the US state of Kentucky, as part of a plan
:09:21. > :09:21.to invest 10 billion dollars in the country.
:09:22. > :09:25.It comes just months after US President Trump threatened Toyota
:09:26. > :09:39.with a border tax if it didn't make its cars in the United States.
:09:40. > :09:41.Talking more about United Airlines...
:09:42. > :09:44.One of the security officers involved in the incident was placed
:09:45. > :09:47.The airline had overbooked the plane from Chicago,
:09:48. > :09:50.and when no one volunteered to leave to let some of United's staff
:09:51. > :09:52.on board, they selected the man and his travelling
:09:53. > :09:56.When he refused to get off, he was dragged down the aisle
:09:57. > :10:03.We'll talk more about that a little later.
:10:04. > :10:05.Let's talk markets now - as investors remain rather cautious,
:10:06. > :10:07.a bit nervous with some of the heighten tension
:10:08. > :10:14.The political tinderbox in the Middle East, the escalating
:10:15. > :10:17.issues around the Korean peninsula and the French elections looming -
:10:18. > :10:21.all of this sending investors heading towards the safe haven
:10:22. > :10:31.Europe - those safe havens - the Japanese yen, govt bonds,
:10:32. > :10:35.govt debt, swiss franc and of course gold.
:10:36. > :10:38.Even oil - which jumped a bit on supply worries with that US
:10:39. > :10:51.missile attack on Syria - has reversed some of those gains.
:10:52. > :10:56.So there you go - let's go and find out what'll be making the headlines
:10:57. > :10:58.over on the other side of the Atlantic -
:10:59. > :11:11.Small business owners continued their streak of as in, we'll find
:11:12. > :11:15.out later today when the National Federation of Independent business
:11:16. > :11:18.releases its monthly survey. Although small-business owner of
:11:19. > :11:24.missing data in the month of February, it stayed near long-term
:11:25. > :11:28.highs as owners remain hopeful about more business friendly policies from
:11:29. > :11:32.Washington. And speaking of small businesses, the Federal Reserve
:11:33. > :11:37.district banks will also be releasing a survey that looks at
:11:38. > :11:41.business conditions and the credit environment from the perspective of
:11:42. > :11:45.author 10,000 small-business owners who have employees. And finally, the
:11:46. > :11:51.US Labor Department will release the jolt for February, that's the job
:11:52. > :11:53.openings and labour turnover survey which economists believe will show a
:11:54. > :11:59.higher reading. Thank you. Nandini Ramakrishnan
:12:00. > :12:13.is Global Market Strategist at JP Great to see you, let's pick up on
:12:14. > :12:19.the US been, not giving away too much yesterday, tell us more. Not a
:12:20. > :12:24.great time to start hiking rates, we expect them to do two more, one in
:12:25. > :12:29.June, another in September, remember interest rate hikes are a signal
:12:30. > :12:32.that the US economy is doing way, the jobs market tight, low on
:12:33. > :12:36.employment numbers and inflation, the price moves month on month, year
:12:37. > :12:43.on year, starting to pick up closer at to the vet's all. If the US
:12:44. > :12:46.stays... I know we have the jobs number on Friday which was
:12:47. > :12:51.disappointing but typically the jobs numbers have been strong, many will
:12:52. > :12:56.say US employment is pretty full, if the US continues on a healthy track
:12:57. > :13:00.at could there be a third? The feds, one of their Fraser says they are
:13:01. > :13:05.data dependent, they are tracking it as it comes in and if it looks
:13:06. > :13:10.strong, maybe there is a chance for three more hikes, making it four on
:13:11. > :13:13.the year. There is a talk about the technical aspect, maybe they will
:13:14. > :13:18.only do two but able to get their balance sheets, see if they are
:13:19. > :13:22.buying more assets and it's reminding us as investors do
:13:23. > :13:27.combinations of monetary is or two that they can use. It becomes ever
:13:28. > :13:30.more evident of the different routes that central Bank are taking, in
:13:31. > :13:36.Europe you have a different picture to the United States. Exactly, the
:13:37. > :13:39.European Central Bank is taking a hands-off approach, purchasing
:13:40. > :13:43.assets, tying bonds in the market, towards the end of the year, good
:13:44. > :13:48.for them to keep stability as there are political issues and events in
:13:49. > :13:52.Europe, the French elections, the German elections towards the end of
:13:53. > :13:55.the year and it allows the ECB to keep policy steady through the
:13:56. > :13:59.process and keep stability in the markets when the political side will
:14:00. > :14:03.be volatile. You use the word steady, with investors, I will
:14:04. > :14:08.return to what I said on the catwalk. Investors... They are
:14:09. > :14:14.treading cautiously at the moment, a lot going on, not nice stuff going
:14:15. > :14:20.on around the world, geopolitical risk, that sees a lot of money being
:14:21. > :14:23.poured into safe havens. That's not necessarily coming at the cost of
:14:24. > :14:28.equity markets, we still see the foot sets and the global equity
:14:29. > :14:33.markets remaining stable but we see people looking into some of those
:14:34. > :14:37.safe havens, at this time it's a great principle to diversify and
:14:38. > :14:43.keep yourself broad across asset classes. -- FTSE. Good to see you.
:14:44. > :14:50.Thank you for explaining all of that. Still to come... Are they
:14:51. > :14:54.taking to a road near you? When will drivers cars become a reality and
:14:55. > :15:01.can we trust the technology? I don't know, can we. We will get the inside
:15:02. > :15:05.track. From Intel was, heading up the new driverless car division. You
:15:06. > :15:12.are with business live from BBC News!
:15:13. > :15:20.JD Sports has reported an 80% jump in annual pre-tax
:15:21. > :15:32.The company said that its sport fashion division had
:15:33. > :15:35.Joining us is George MacDonald, Executive Editor, Retail Week.
:15:36. > :15:41.Good morning to you. Let's talk first of all the results as we said,
:15:42. > :15:44.they look pretty good, but this comes after a damning investigation,
:15:45. > :15:48.one that looked at the conditions in its warehouse. The warehouse in
:15:49. > :15:52.Rochdale and it was found to be a pretty tough place to work. Just
:15:53. > :15:58.explain it for us. Yes, there was various allegations made several
:15:59. > :16:03.months ago including for instance that workers could be sacked
:16:04. > :16:07.on-the-spot. JD said at the time that it disagreed with the various
:16:08. > :16:11.claims and it mounted a review since which it makes brief reference to
:16:12. > :16:15.this morning. It got Deloitte in to have a look at conditions and says
:16:16. > :16:21.that the report was not balanced in its view. So it will hope to draw a
:16:22. > :16:25.line under those claims. George, it is Aaron here, what's the
:16:26. > :16:32.difference between Sport Direct and JD? Up, what's going on there? Yes,
:16:33. > :16:37.there are some big differences between the two companies. JD,
:16:38. > :16:40.unlike Sports Direct has very good relationships with suppliers. That
:16:41. > :16:45.means it can get exclusive product. It puts a lot of energy into making
:16:46. > :16:51.sure its stores look great and that draws customers in. It is benefiting
:16:52. > :16:55.too from this leisure trend of people wearing trainers for every
:16:56. > :16:58.purpose. Briefly, they have been talking
:16:59. > :17:02.about Brexit and about what it will mean for the business. Talk us
:17:03. > :17:07.through what they make of it all? Well, like lots of retailers they
:17:08. > :17:10.have forecast uncertainty. You have got things like the decline in value
:17:11. > :17:14.of the pound. However, they're confident they have got a business
:17:15. > :17:17.model and they're doing the right things and they can trade quick
:17:18. > :17:26.successfully through it. George, thank you very much.
:17:27. > :17:29.I want to take you to the Business Live page because all sorts of
:17:30. > :17:36.results are coming through. News from Heathrow. Growth up at
:17:37. > :17:44.Heathrow, but remember, Heathrow Airport also want the title of being
:17:45. > :17:50.Best Airport in Western Europe. It is the third time that it won. Some
:17:51. > :17:57.terminals are nice! LAUGHTER
:17:58. > :18:06.We hear a lot about the development of driverless cars, but when might
:18:07. > :18:10.they actually become common on our roads?
:18:11. > :18:13.We know major car firms and tech giants are investing billions
:18:14. > :18:19.of dollars in the industry, but when will it start to pay off?
:18:20. > :18:26.It aims to have a fully autonomous car with no steering wheel or brake
:18:27. > :18:33.By 2025, the driverless car market is expected to be worth $42 billion,
:18:34. > :18:36.according to Boston Consulting Group.
:18:37. > :18:39.IHS researchers predict there could be 76 million autonomous
:18:40. > :18:50.Intel has bought specialist technology firm
:18:51. > :18:55.It's all part of a new strategy to focus
:18:56. > :19:00.Doug Davis runs this operation and told me what that tie-up
:19:01. > :19:14.We really see the opportunity to more tightly integrate what they do
:19:15. > :19:18.with what Intel can deliver with the computing in the car in the way in
:19:19. > :19:22.which we combine data from cameras and other sensors with
:19:23. > :19:24.high-definition maps to be able to calculate where that car needs to go
:19:25. > :19:30.to get you from one point to the other. How long until autonomous
:19:31. > :19:35.cars become the norm on our roads? Many of the car manufacturers are
:19:36. > :19:39.saying that they'll start building cars that are consumer can go and
:19:40. > :19:44.purchase in 2021, that's their time frame. So we think by 2025 or so, we
:19:45. > :19:48.will start to see a pretty meaningful number of these vehicles
:19:49. > :19:53.on the road and the projections are that really takes off. We've
:19:54. > :19:58.projected that's $70 billion opportunity by the year 2030 when we
:19:59. > :20:01.look at the computing in the car and the data and the services associated
:20:02. > :20:05.with the vehicles. It sounds wonderful, but there is a lot of
:20:06. > :20:08.issues you've got to contend with, not least convincing consumers that
:20:09. > :20:14.they are safe and the security implications of it. How do you do
:20:15. > :20:18.that? We're concentrating on things like security, and privacy and how
:20:19. > :20:21.you make the systems really safe and robust, but there is that human
:20:22. > :20:25.factor, we're going to want to make sure that the car see that is
:20:26. > :20:31.bicycle or the truck that's coming up. So our Intel lab is working with
:20:32. > :20:37.our customers on technologies that can make the car give us indications
:20:38. > :20:41.that it does see something or that that car can indicate to a
:20:42. > :20:45.pedestrian standing on its corner that they see each other as well.
:20:46. > :20:48.One tier that many people might have is connectivity because when we talk
:20:49. > :20:53.about electric cars, there is the worry you won't be able to charge if
:20:54. > :20:57.you're on a long journey, what about with autonomous cars, I imagine they
:20:58. > :21:02.contact with a network and that relies on good 5G and good wi-fi?
:21:03. > :21:06.The car will be able to continue to navigate with the sensors that are
:21:07. > :21:10.in the car, the model that's in the car and the map, even though we may
:21:11. > :21:17.lose connectivity at some point other another. There was a
:21:18. > :21:20.high-profile case of, ber's autonomous car being involved in a
:21:21. > :21:24.collision. How damaging are headlines like that? 93% of fatal
:21:25. > :21:28.accidents in the United States happen because of human error.
:21:29. > :21:31.Autonomous vehicles will be safer because of the ability of the
:21:32. > :21:37.vehicle to see what's happening around it taught and be able to
:21:38. > :21:41.calculate and handle circumstances in a very predictable manner. It
:21:42. > :21:45.strikes me autonomous vehicles can make a huge difference to people
:21:46. > :21:52.with disabilities, particularly those with sight loss S that a happy
:21:53. > :21:58.bi-product or is it central to what you're trying to achieve? Mobility
:21:59. > :22:02.on demand is really important. There are so many benefits. We can think
:22:03. > :22:07.about people with disabilities, people who have some sight
:22:08. > :22:11.limitations, it will give them the ability to move around much more
:22:12. > :22:15.easily. But it will also provide a wide range of other benefits. It
:22:16. > :22:19.will reduce the amount of congestion for cars driving around looking for
:22:20. > :22:23.a parking space because we know cities are eager to put
:22:24. > :22:27.infrastructure in place that will help indicate where parking spaces
:22:28. > :22:31.are. So, if we can have that data combined with autonomous vehicles
:22:32. > :22:34.the car can drop you off at your doctor's appointment, go find a
:22:35. > :22:38.place to park and then just come back and pick you up when you're
:22:39. > :22:40.ready. It will help on that mobility on demand, but it will help with
:22:41. > :22:49.city infrastructure as well. We think about all the really big,
:22:50. > :22:54.you know, interesting things that will come as a result of driverless
:22:55. > :22:58.cars, being able to get around, but really mundane useful things like
:22:59. > :23:03.car parks can be smaller because you will be able to get dropped off at
:23:04. > :23:09.the pavement and the car will drive itself. You say there is a positive,
:23:10. > :23:15.but there are negatives. Dominic O'Connell, what's the negative? What
:23:16. > :23:21.are... If you're plan to go drink your life away and rely on having a
:23:22. > :23:26.liver transplant, 90% of all organs come from car crashes. Where are the
:23:27. > :23:32.car crashes going to happen if you only have driverless cars? It's so
:23:33. > :23:36.true. Dominic, let's talk about the stories in the papers and there is
:23:37. > :23:43.one story dominating, snaOd, it is this one, the one about United
:23:44. > :23:53.Airlines. You got the pictures. Run the pictures and we can talk. Look,
:23:54. > :23:59.I mean, the, here we go. What do you say about it Dominic? The flight was
:24:00. > :24:03.overbooked and there were four United employees flying to connect
:24:04. > :24:06.to another flight. People wouldn't take the compensation which is what
:24:07. > :24:09.normally happens. So the computer chose four people at random. A
:24:10. > :24:13.next and he said he wouldn't go. He next and he said he wouldn't go. He
:24:14. > :24:20.claimed to be a doctor and he said I have got to go and see my patients
:24:21. > :24:23.the airline called airport security staff and they knocked him about a
:24:24. > :24:28.bit. He was bleeding from his nose and mouth and social media has gone
:24:29. > :24:33.nuts and United Airlines response has been typical of a company that
:24:34. > :24:36.just doesn't get it. Not really an apology from the Chief Executive
:24:37. > :24:43.last night and it was the second statement, the first response... It
:24:44. > :24:48.was terrible. The first response was a spokesman saying we had an
:24:49. > :24:53.overbooking incident. The second one, we're sorry if anybody was
:24:54. > :24:59.distressed. It wasn't something like we got this completely wrong. Let's
:25:00. > :25:05.jump into some tweets. A lot of comments. One here from a viewer who
:25:06. > :25:10.says, "Let's stop saying the flight was overbooked. The point is
:25:11. > :25:18.everyone had seats. United needed the seats for staff." This just
:25:19. > :25:20.highlights that not just United, but we have seen other mistakes with
:25:21. > :25:24.airlines, they don't, they haven't got it yet about the social media
:25:25. > :25:28.and the speed that things can move around the world. Social media
:25:29. > :25:31.doesn't help if you knock one of your paying passengers about. You
:25:32. > :25:35.shouldn't do it and if you do it, you apologise. None of us realise
:25:36. > :25:40.what we really sign up to when we buy an airline ticket. The contract
:25:41. > :25:43.that you enter into is 37,000 words long. So they have rights to do
:25:44. > :25:46.stuff to you that you don't even think about, but as a customer,
:25:47. > :25:50.someone who buys an airline particular, I want to make sure, I
:25:51. > :25:53.want to know that I'm going to be on the flight and fly from A to B.
:25:54. > :25:58.That's the basic and that's not the case with modern airline travel.
:25:59. > :26:02.Dominic, thank you very much. Someone texted and said, "They asked
:26:03. > :26:03.the man to leave and he refused. End of story." That's it from us.
:26:04. > :26:08.Bye-bye.