11/04/2017 BBC Business Live


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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.




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