11/04/2017 BBC Business Live

This is Business Live from BBC News with Aaron

Toshiba's troubles continue - the Japanese giant faces

the prospect of being delisted from the Tokyo Stock Exchange.

Live from London, that's our top story on Tuesday 11th April.

Toshiba isn't the only Japanese company which is

struggling to stay afloat - later in the programme,

we'll look at the issues facing some of the country's biggest names.

The business community has been reacting to THIS video

of a man being dragged off a United Airlines flight.

Come fly the friendly skies... Or not!

We'll bring you full details later in the show.

And we give you an update on the markets. The looming French

election, we will tell you for that is doing to investors.

When will driverless cars become a reality -

I get the inside track from the Intel boss heading

up the tech giant's new driverless car division.

And as Aaron said, that United Airlines video is going viral around

the world, will be an airline ever redeem itself and what do you think

the passengers should get? Tell us your thoughts.

Let us know, use the hashtag BBCBizLive.

That poor bloke, he should be getting first-class for the rest of

his life, that's what I say! We start with the

troubles at Toshiba. The company is expected

to publish its results for the last quarter of 2016 today,

after postponing them twice. And they are expected

to be disastrous. The numbers have already been

spilled twice. -- been postponed. We hope to no mere

after a press conference Recently Toshiba announced

that its losses would TRIPLE as a result of difficulties faced

by its US Westinghouse division. The company's US new-clear division

has suffered huge cost over-runs at two projects in Georgia and South

Carolina. Since Toshiba told us these

numbers would be awful... Take a look at what investors have

in doing. They have been sucking their money out of the country. And

the company. The company's share price

has more than halved. There are fears that Toshiba

could be de-listed from the main Tokyo Stock Exchange if it reports

another set of disappointing The issues faced by Toshiba

highlights Japan's problem Some experts argue that the central

bank is making it too easy for Japanese firms to access funding

and this is providing an artificial lifeline

to unprofitable businesses. You have to ask yourself, as an

outsider, what are the problems and why have all these problems hit

Japan, corporate Japan? You think about the household brands that we

all used to use and love? What has gone wrong?

The BBC's Rupert-Wingfield Hayes has been to investigate -

These were the greatest rounds in consumer goods for decades. Toshiba,

Panasonic, Hitachi, Sony... How did we end up here? First of all the

Chinese and the Koreans came along and they could make these things

just as well but much cheaper. Worst of all and most importantly these

Japanese companies lost their Mojo, they forgot how to innovate. The

country that invented the Walkman did not go on to invent the

smartphone. Inside a vast exhibition hall more

than 3000 new recruits are being inducted into one of Japan's big

corporations. A lot of these young people can expect to spend the whole

of their career in this one company. It will we come their second home.

They'll expect to work hard, long hours and wait their turn for

promotion. It's a model does work well for Japan in the past but it

has real problems. In this rigid corporate hierarchy promotion is

based on age, not on talent. It's a culture that is resistant to change

and bad at producing new ideas. Japan's big corporations realised

they had to change to survive and Toshiba decided to bet on nuclear.

In 2006 it went out and bought Westinghouse five years later, this

happened. But this behind me here, this is me,

inside the Fukushima plant four years ago... This changed

everything, many companies deciding they did not want anything to do

with nuclear power and those that did insisted any new plants must be

much safer the cause of that, they work going to be much more expensive

than bad is the root of Toshiba's current financial disaster. -- and

that is. Toshiba is not alone. Other famous Japanese names have been

through deep crises, last year Sharp was told to a Taiwanese company, now

Toshiba will be broken up, it's best it's sold off to the highest bidder.

Rupert Wingfield Hayes, BBC News, Tokyo.

Well lets talk more about this with Makoto Itoh, he's a professor

A warm welcome to the programme, I and a member of the Japan Academy.

A warm welcome to the programme, I am interested first and Toshiba, the

figures delayed once again, what is your take on what we might hear from

Toshiba? Hello! I suspect he perhaps cannot hear us... No, I hear you.

Good to establish communications, I am just going to try again because

we wanted to pick up on what happens in terms of Toshiba and I wonder if

you can give me your take on the fact that the results have been

delayed twice so what happens next? I think they decided this morning in

Tokyo to disclose Q3 delayed reports of last year until December. And

they could not get approval from the audit corporations but decided to

announce the report openly. They feared that more delay would

endanger their position in the stock market. So they decided to disclose

this afternoon the huge loss of probably tell $1 billion. -- $10

billion. And probably they tried to restructure the financial position

from there. We are having some problems about being able to hear

you so we are going to cut this short but I thank you so much, we

will try to establish that line if we can. Shall we touch on some of

the other stories? A bit of a car theme.

Japanese carmaker Toyota says it's spending 1.3 billion dollars

on its plant in the US state of Kentucky, as part of a plan

to invest 10 billion dollars in the country.

It comes just months after US President Trump threatened Toyota

with a border tax if it didn't make its cars in the United States.

Talking more about United Airlines...

One of the security officers involved in the incident was placed

The airline had overbooked the plane from Chicago,

and when no one volunteered to leave to let some of United's staff

on board, they selected the man and his travelling

When he refused to get off, he was dragged down the aisle

We'll talk more about that a little later.

Let's talk markets now - as investors remain rather cautious,

a bit nervous with some of the heighten tension

The political tinderbox in the Middle East, the escalating

issues around the Korean peninsula and the French elections looming -

all of this sending investors heading towards the safe haven

Europe - those safe havens - the Japanese yen, govt bonds,

govt debt, swiss franc and of course gold.

Even oil - which jumped a bit on supply worries with that US

missile attack on Syria - has reversed some of those gains.

So there you go - let's go and find out what'll be making the headlines

over on the other side of the Atlantic -

Small business owners continued their streak of as in, we'll find

out later today when the National Federation of Independent business

releases its monthly survey. Although small-business owner of

missing data in the month of February, it stayed near long-term

highs as owners remain hopeful about more business friendly policies from

Washington. And speaking of small businesses, the Federal Reserve

district banks will also be releasing a survey that looks at

business conditions and the credit environment from the perspective of

author 10,000 small-business owners who have employees. And finally, the

US Labor Department will release the jolt for February, that's the job

openings and labour turnover survey which economists believe will show a

higher reading. Thank you. Nandini Ramakrishnan

is Global Market Strategist at JP Great to see you, let's pick up on

the US been, not giving away too much yesterday, tell us more. Not a

great time to start hiking rates, we expect them to do two more, one in

June, another in September, remember interest rate hikes are a signal

that the US economy is doing way, the jobs market tight, low on

employment numbers and inflation, the price moves month on month, year

on year, starting to pick up closer at to the vet's all. If the US

stays... I know we have the jobs number on Friday which was

disappointing but typically the jobs numbers have been strong, many will

say US employment is pretty full, if the US continues on a healthy track

at could there be a third? The feds, one of their Fraser says they are

data dependent, they are tracking it as it comes in and if it looks

strong, maybe there is a chance for three more hikes, making it four on

the year. There is a talk about the technical aspect, maybe they will

only do two but able to get their balance sheets, see if they are

buying more assets and it's reminding us as investors do

combinations of monetary is or two that they can use. It becomes ever

more evident of the different routes that central Bank are taking, in

Europe you have a different picture to the United States. Exactly, the

European Central Bank is taking a hands-off approach, purchasing

assets, tying bonds in the market, towards the end of the year, good

for them to keep stability as there are political issues and events in

Europe, the French elections, the German elections towards the end of

the year and it allows the ECB to keep policy steady through the

process and keep stability in the markets when the political side will

be volatile. You use the word steady, with investors, I will

return to what I said on the catwalk. Investors... They are

treading cautiously at the moment, a lot going on, not nice stuff going

on around the world, geopolitical risk, that sees a lot of money being

poured into safe havens. That's not necessarily coming at the cost of

equity markets, we still see the foot sets and the global equity

markets remaining stable but we see people looking into some of those

safe havens, at this time it's a great principle to diversify and

keep yourself broad across asset classes. -- FTSE. Good to see you.

Thank you for explaining all of that. Still to come... Are they

taking to a road near you? When will drivers cars become a reality and

can we trust the technology? I don't know, can we. We will get the inside

track. From Intel was, heading up the new driverless car division. You

are with business live from BBC News!

JD Sports has reported an 80% jump in annual pre-tax

The company said that its sport fashion division had

Joining us is George MacDonald, Executive Editor, Retail Week.

Good morning to you. Let's talk first of all the results as we said,

they look pretty good, but this comes after a damning investigation,

one that looked at the conditions in its warehouse. The warehouse in

Rochdale and it was found to be a pretty tough place to work. Just

explain it for us. Yes, there was various allegations made several

months ago including for instance that workers could be sacked

on-the-spot. JD said at the time that it disagreed with the various

claims and it mounted a review since which it makes brief reference to

this morning. It got Deloitte in to have a look at conditions and says

that the report was not balanced in its view. So it will hope to draw a

line under those claims. George, it is Aaron here, what's the

difference between Sport Direct and JD? Up, what's going on there? Yes,

there are some big differences between the two companies. JD,

unlike Sports Direct has very good relationships with suppliers. That

means it can get exclusive product. It puts a lot of energy into making

sure its stores look great and that draws customers in. It is benefiting

too from this leisure trend of people wearing trainers for every

purpose. Briefly, they have been talking

about Brexit and about what it will mean for the business. Talk us

through what they make of it all? Well, like lots of retailers they

have forecast uncertainty. You have got things like the decline in value

of the pound. However, they're confident they have got a business

model and they're doing the right things and they can trade quick

successfully through it. George, thank you very much.

I want to take you to the Business Live page because all sorts of

results are coming through. News from Heathrow. Growth up at

Heathrow, but remember, Heathrow Airport also want the title of being

Best Airport in Western Europe. It is the third time that it won. Some

terminals are nice! LAUGHTER

We hear a lot about the development of driverless cars, but when might

they actually become common on our roads?

We know major car firms and tech giants are investing billions

of dollars in the industry, but when will it start to pay off?

It aims to have a fully autonomous car with no steering wheel or brake

By 2025, the driverless car market is expected to be worth $42 billion,

according to Boston Consulting Group.

IHS researchers predict there could be 76 million autonomous

Intel has bought specialist technology firm

It's all part of a new strategy to focus

Doug Davis runs this operation and told me what that tie-up

We really see the opportunity to more tightly integrate what they do

with what Intel can deliver with the computing in the car in the way in

which we combine data from cameras and other sensors with

high-definition maps to be able to calculate where that car needs to go

to get you from one point to the other. How long until autonomous

cars become the norm on our roads? Many of the car manufacturers are

saying that they'll start building cars that are consumer can go and

purchase in 2021, that's their time frame. So we think by 2025 or so, we

will start to see a pretty meaningful number of these vehicles

on the road and the projections are that really takes off. We've

projected that's $70 billion opportunity by the year 2030 when we

look at the computing in the car and the data and the services associated

with the vehicles. It sounds wonderful, but there is a lot of

issues you've got to contend with, not least convincing consumers that

they are safe and the security implications of it. How do you do

that? We're concentrating on things like security, and privacy and how

you make the systems really safe and robust, but there is that human

factor, we're going to want to make sure that the car see that is

bicycle or the truck that's coming up. So our Intel lab is working with

our customers on technologies that can make the car give us indications

that it does see something or that that car can indicate to a

pedestrian standing on its corner that they see each other as well.

One tier that many people might have is connectivity because when we talk

about electric cars, there is the worry you won't be able to charge if

you're on a long journey, what about with autonomous cars, I imagine they

contact with a network and that relies on good 5G and good wi-fi?

The car will be able to continue to navigate with the sensors that are

in the car, the model that's in the car and the map, even though we may

lose connectivity at some point other another. There was a

high-profile case of, ber's autonomous car being involved in a

collision. How damaging are headlines like that? 93% of fatal

accidents in the United States happen because of human error.

Autonomous vehicles will be safer because of the ability of the

vehicle to see what's happening around it taught and be able to

calculate and handle circumstances in a very predictable manner. It

strikes me autonomous vehicles can make a huge difference to people

with disabilities, particularly those with sight loss S that a happy

bi-product or is it central to what you're trying to achieve? Mobility

on demand is really important. There are so many benefits. We can think

about people with disabilities, people who have some sight

limitations, it will give them the ability to move around much more

easily. But it will also provide a wide range of other benefits. It

will reduce the amount of congestion for cars driving around looking for

a parking space because we know cities are eager to put

infrastructure in place that will help indicate where parking spaces

are. So, if we can have that data combined with autonomous vehicles

the car can drop you off at your doctor's appointment, go find a

place to park and then just come back and pick you up when you're

ready. It will help on that mobility on demand, but it will help with

city infrastructure as well. We think about all the really big,

you know, interesting things that will come as a result of driverless

cars, being able to get around, but really mundane useful things like

car parks can be smaller because you will be able to get dropped off at

the pavement and the car will drive itself. You say there is a positive,

but there are negatives. Dominic O'Connell, what's the negative? What

are... If you're plan to go drink your life away and rely on having a

liver transplant, 90% of all organs come from car crashes. Where are the

car crashes going to happen if you only have driverless cars? It's so

true. Dominic, let's talk about the stories in the papers and there is

one story dominating, snaOd, it is this one, the one about United

Airlines. You got the pictures. Run the pictures and we can talk. Look,

I mean, the, here we go. What do you say about it Dominic? The flight was

overbooked and there were four United employees flying to connect

to another flight. People wouldn't take the compensation which is what

normally happens. So the computer chose four people at random. A

next and he said he wouldn't go. He next and he said he wouldn't go. He

claimed to be a doctor and he said I have got to go and see my patients

the airline called airport security staff and they knocked him about a

bit. He was bleeding from his nose and mouth and social media has gone

nuts and United Airlines response has been typical of a company that

just doesn't get it. Not really an apology from the Chief Executive

last night and it was the second statement, the first response... It

was terrible. The first response was a spokesman saying we had an

overbooking incident. The second one, we're sorry if anybody was

distressed. It wasn't something like we got this completely wrong. Let's

jump into some tweets. A lot of comments. One here from a viewer who

says, "Let's stop saying the flight was overbooked. The point is

everyone had seats. United needed the seats for staff." This just

highlights that not just United, but we have seen other mistakes with

airlines, they don't, they haven't got it yet about the social media

and the speed that things can move around the world. Social media

doesn't help if you knock one of your paying passengers about. You

shouldn't do it and if you do it, you apologise. None of us realise

what we really sign up to when we buy an airline ticket. The contract

that you enter into is 37,000 words long. So they have rights to do

stuff to you that you don't even think about, but as a customer,

someone who buys an airline particular, I want to make sure, I

want to know that I'm going to be on the flight and fly from A to B.

That's the basic and that's not the case with modern airline travel.

Dominic, thank you very much. Someone texted and said, "They asked

the man to leave and he refused. End of story." That's it from us.

Bye-bye.