09/05/2017 BBC Business Live


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This is Business Live from BBC News with Ben Thompson and Sally Bundock.


Voting is under way in South Korea - but will new leadership make


Kante break the cosy relationship between big business and government?


Live from London, that's our top story on Tuesday 9th May.


South Korea's massive conglomerates dominate the country's economy,


but the election frontrunners say that more needs to be done to tackle


Who will win and what can they achieve?


Also in the programme, there's a new kid on the block


in the world of online payments - can the Chinese giant


Alipay give Paypal a run for its money in the US?


We will take you three winners and losers in Europe, on the they are


all up. Also in the programme,


we'll get the inside track on a smartwatch that allows parents


to keep tabs on their children. But is wearable tech really


the solution to parenting problems - Welcome to the programme. Please get


in touch with your views on that story about parenting, wearable


technology, or anything else we are covering.


South Korea is just a few hours away from finding out


The election comes after the former President Park Geun-Hye was removed


from office as part of an ongoing investigation into corruption.


The country's economy bounced back strongly


following the 2008 financial crisis, but in recent years,


quarterly growth has struggled to break above 1%.


What are the presidential hopefuls offering to try to change the


fortunes of South Korea? The current frontrunner Moon Jae-In


has vowed to boost government spending and create


over 800,000 new jobs His main rival - Ahn Cheol-Soo -


feels the government should be more cautious with its spending plans,


but both candidates are united over Big business is still reeling from a


money for influence scandal that has seen several top executives grilled


by politicians. This includes the bosses of massive


corporations such as Samsung, In the past, large conglomerates


were credited with South Korea's rise to economic prominence,


but now many experts are questioning whether the country has


become too over-reliant To give you a sense of scale -


the biggest company in South Korea is Samsung,


the group spans every aspect of life and its business


accounts for roughly 20% of Currently the 10 biggest companies


in South Korea account for nearly a quarter of the country's total


corporate tax revenue. With me is Agathe L'Homme,


Asia analyst at the Sally getting into some of the


details there about how the chaebol works, the influence they have over


the South Korean economy. How dominant are they, how much pressure


can they exert on politics and economics? They are very dominant


and can exercise a lot of pressure. I think that is what we have seen


with Park Geun-Hye, the former President, that was impeached. The


Vice President of Samsung is in jail on bribery charges, which he denies.


They have a very cosy relationship. The candidates running in the


election right now have been campaigning on that topic very


intensely. We do expect changes in that regard. How likely is it they


can break up that cosy relationship? We posed the question at the start


of the programme, the links are so intertwined with many parts of


society and the economy. Is it realistic to expect there will be


cut overnight? They will not be cut overnight, I don't think that is


desirable. But there should be some reining in happening. The leading


candidate, Moon Jae-In, has been campaigning on that topic. There are


already bills in the pipeline. Should he be elected, that is


forecast, he will have momentum to pass them through the National


Assembly. It is probably easy as outsiders to criticise the system.


We should also remember that system is what has but South Korea on the


map will stop economically, some of the most well-known names in the


world have come from South Korea, Samsung or the other is that Sally


Ryan through. It is a double-edged sword, it works, but we have seen


the downside? Yes. Domestically, what is problematic is that they


have such a strong hold on the economy that there is no trickling


down any more. A lot of SMEs are suffering, suppliers of the big


chaebol, they don't really see growth happening. A word on North


Korea, we can't talk about the south without concern for the North, what


effect could not have? We see Moon Jae-In wanting to re-engage with the


North. We think they could rekindle the Sunshine Policy, and to the


regime. That is one we will all watch closely. Really nice to see


you. Let's take a look at some of


the other stories making the news. Toshiba has told its memory chip


partner Western Digital not to interfere with the sale


of its chip unit. Western Digital claims


that the Japanese firm has breached a contract between the two


by transferring rights it doesn t Toshiba says it will use


all available remedies if Western Digital continues


to pursue the complaint A woman who alleges she was sexually


harassed at Fox News has asked UK media regulators to block 21st


Century Fox's planned Ofcom is examining the bid


for the UK broadcaster, Dr Wendy Walsh's legal team says


the deal would allow Fox to bring a "culture of sexual and racial


harassment" to the UK. The company says it has addressed


the allegations and made The International Monetary Fund has


raised its growth forecast for the Asia Pacific region to 5.5


percent from its previous But the IMF also warned


that the near-term outlook for the region is "clouded


with significant uncertainty". In a report, the fund said


medium-term growth faced difficulties from a slowdown


in productivity growth in both Alipay, China's biggest


online payments platform, is stepping up its global expansion


with a major foray into North America -


the home of PayPal and ApplePay. Leisha Chi is across


the story from our Asia Tell us what Ali pay has in mind?


PayPal is the 800 pound gorilla in the room when it comes to mobile


payments. But this new deal for Alipay puts it in the same league as


ApplePay. Basically, users will now be allowed to use the app to shop at


4 million merchants in the US. That is quite significant. The Chinese


billionaire that owns Alipay has billionaire that owns Alipay has


declared his intention is to expand his business empire globally. He is


looking at the US, the world's biggest consumer market. In China,


Alipay already dominates the mobile payment landscape, together with


rival they account for most of the market. If the foray into the US is


successful, they can expand into other countries where they don't


have a presence. It's a smart move, we are seeing increasing numbers of


Chinese travelling each year and they will be able to use Alipay to


book cabs, hotels and so forth. book cabs, hotels and so forth.


Interesting, we will keep an eye on that.


Lets see how markets fared. Japan down by 0.25%. A mixed picture in


Asia. Most markets down slightly because the previous day was such a


strong start to the week. Over 2% gain on Monday. A bit of a sell-off.


Sony is one of the big winners. Let's look at how Europe is faring.


Markets across the board or edging slightly higher. Oil prices are flat


after yesterday's jump off the back of rumours... Well, not rumours,


statements from Opec about plans to keep production cuts in place for


longer, to try to keep the price of oil higher. Now what is ahead on


Wall Street. Two media companies will be


reporting earnings on Tuesday, The recent film Beauty


and the Beast will help lift But the other part of the company,


ESPN, it has been losing The company will have to pacify


investors with a plan to strengthen ESPN, whilst also finding a capable


replacement to chief executive Bob Iger, who will be


stepping down in 2019. The decline in newspaper advertising


will certainly heard News Corp's earnings,


they own newspapers like the Wall Street Journal,


the Dow Jones newswires As part of its digital push,


the company has been cutting jobs, Joining us is Jeremy Cook,


Chief Economist, World First. Staying with the American team, the


issue that was being raised there, a lot of corporate news? But also we


heard from the Fed? Yes, trying to re-energise the communication coming


out of there. It has gone quiet in the last couple of weeks. Almost a


100% probability they will raise rates in June. It is a case of


whether they will come out and say, yes, we are going to do something in


June. Much like we heard from the IMF in Asia, there is still


uncertainty and clouds around this, they are not going to 2% any time


soon. They should call them the Fed Talk, you know, like the TED talk?


With Sony, quite interesting, following the fact that Emmanuel


Macron did get the election in France, it has gone quite quiet? It


has, we were expecting a bit of a bump and we got the tiniest bump,


and then everybody said, well, now the focus turns to the legislative


elections and whether he can get a mandate within Parliament to be able


to get up there and do what he was elected to do. The main conversation


I heard on Sunday night was, yes, France, but what about Italy?


Everybody is talking about the possible Italian election. Sony is


interesting, that has been around for years and years. Every time you


see Sony, it is new profit warnings. But they are starting to come back,


we are getting upgrades by Goldman Sachs. The oil price is going to be


capped, largely due to the fact that Opec are going to keep the cats


going into the market, the price remains pretty stable. An


interesting place to leave it, you're going to talk about how


petrol stations work out how much to charge? Robots are controlling as!


We know that already. Is wearable tech really the solution


to parenting problems - Should kids be left to be kids? We


will find out later. on a smartwatch that allows parents


to keep tabs on their children. You're with Business


Live from BBC News. Theresa May has promised to end


the injustice of rising energy costs by including a cap


in the Conservative general The Prime Minister says the energy


market "is not working", with vulnerable people worst hit


by rip-off bills. Industry groups have


criticised the plan, first announced last month,


saying it could lead Labour, which offered its own bill


cap ahead of the 2015 election, accused the Tories


of desperate stuff. Chris Mason is at


Westminster for us. We are getting some details ahead of


the manifesto launch about what they might want to talk about today,


energy? It is. Energy is the big focus today. The Conservatives,


quite striking, trying to put themselves on the side of consumers


rather than the big energy providers. The other thing that is


striking is that it has a ring of familiarity about it. Why? Well,


here is the Labour manifesto from two years ago. Labour will freeze


energy bills until 2017, ensuring they can fall but not rise, and will


give the regulator the power to cut bills this winter. The Conservatives


seem to have done a bit of a cut and paste job. The idea was popular when


it Ed Miliband floated it, Conservatives decided to take it on


board two years on. They say it is different and more subtle, it is


less crude. But the similarities are pretty striking. The question is,


will it be a vote winner and is it a promise they can keep? They will


hope it is, that is the short answer to the first question. In terms of


whether it is something they can keep in terms of a promise, this is


where it gets a bit complicated. It would involve the regulator, of


common. There will have to be a consultation. -- of common. If there


are variations in the wholesale price, bills could still rise and


fall. The extent to which consumers will notice instantly, we will have


to wait and see. When we get news about the


manifesto, we'll fill you in. If you want more details on the energy


story, you'll find it on the BBC Business Live page.


It has details from Labour, of course, as you heard from Chris


Mason who already proposed it in a previous election campaign.


This is Business Live. Today we're focussed on South Korea. In a few


hours we will find out who the next Prime Minister will be. We have been


looking at what influence business has on politics in the country.


Let's look at markets quickly to bring you up-to-date. In Europe,


they were up by a quarter of a percent when we last looked. We'll


bring you the numbers later. The numbers are on the screen.


That's what Europe is doing. So details there. As you can see,


another rise in the CAC and the DAX. Imagine losing your


child at a theme park - something most people


would rather forget. But witnessing another parent's


panic resulted in our next guest giving up her career in investment


banking to become Last year, Colleen Wong launched


a smartphone watch, the Gator, it allows parents to keep track


of their kids, without having But Colleen says being a start-up


boss is not glamorous. As well as running a company,


she is a busy mum To keep costs down she employs two


flexible staff who look after IT and social media marketing,


and three advisors who are friends So far, the business has received no


outside investment yet, but Colleen With me is Colleen Wong,


developer of the Gator watch and founder of child tracker firm,


TechSixtyFour. Explain how the Gator watch works.


So it has a button here that can call mum or dad or up to ten other


members of the family and it is a tracker as well. Parents can


download the Gator app and track where their child is and uses GPS


when the child is outdoors and wi-fi when it is indoors. It is something


kids would probably want to wear. We touched on there why you saw the


need for it. Talk us through the moment when you realised this could


be a great product? I was with my two kids at a farm park and I


witnessed a mum running around looking for her five or six-year-old


son... It wasn't me, was it? That mum could have been looking for my


child and it does cause a moment where your heart stops for a few


minutes. In terms of how this works, you put the sim in yourself. So, if


we were to purchase this watch, we have to come to you to get the sim


and to get it up and running and it links up to any mobile network


wherever you happen to be, Vodafone, O 2 or EE or anything? No. I've done


it this way. As a parent, we don't have that much time. I wanted to


make it, easy solution for parents when they buy the watch, they sign


up for the service plan online and it connects within 24 hours. I guess


it varies where you are in the world. We posed this question at the


start of the programme, could kids not be kids? Part of the fun of


doing a kid you had independence just as you were starting to grow


up, as long as you didn't go too far and your parents would know you come


back at the end of the day, does that ruin that element? I think


times have changed and parents are more worried when their kids are out


and about on their own. So, when they want to give there. When they


think about giving their child a snOn, that increases other worries,


access to the internet, too much gaming, too much screen time. So


what's the happy medium? I think my solution offers that. You can stay


connected, but you don't have to have them using a smartphone and


getting access to too much information. The difficulty I have


to say, my children haven't got smart devices, but my son who is


nine, who I might get one of those for because he is all over the shop


and wild and I'd love to know where he is half the time. He would like


an Apple watch and he would want to swipe around and play games and do


all this stuff and that doesn't provide that. I would have a job


convincing him to wear that, I think? No, I agree. And that's the


thing, it's trying to keep that on a child. What I'm trying to do is work


with various partners to make it more exciting for children. So when


I do my crowdfunding and when I raise funds licensing would be


something I would be looking at. So I imagine this watch with the strap,


with Star Wars on it. Something to keep the child interested as well.


A word about your background. Investment banking to creating


watches for kids. Join the dots for us. OK, so I used to work in foreign


exchange sales. I left the business to have children. And then yeah,


that was it. That light bulb moment came when I took my kids to the


farm. Have you ever looked back? No, I love what I'm doing. You look


after the children and try and run this company at the same time? I


have an amazing childminder, but yes, it is a juggle every day and I


don't have much sleep. But, it's amazing and exciting and I love


every single minute of it. You're wide awake on this show. Thank you


for coming in. Interesting. Thank you.


Here is a reminder of how to get in touch.


We want to hear from you too. Get involved on the BBC Business Live


web page. On Twitter we're at BBC business and you can find us on


Facebook. Business Live on TV and online whenever you need to know.


Today, your comments on the smart watch for tracking kids. A viewer


says, "Honestly, it sounds like a breaking of trustment don't spy on


your kids when they say they can go somewhere without you." I love


Annie, "Just give your kid the watch, it can set an alarm for


bedtime so you don't need a baby-sitter." ." Tea being dinner,


not a cup of tea for the childminder. If it is the north of


England, it is tea. Tea is what? Tea is your evening meal. It's not


something in here? No, that's a brew! OK. Just to be clear. It is a


builder's. What's tea for you? It's a hot


refreshing drink! Let's talk Wall Street Journal. Why are the gas


prices changing and it is to do with computers? It is. It is to do with


software that petrol stations and these big oil companies are using to


make sure that they are constantly matching the demand this they are


seeing on the fore courts with higher prices. And only cutting


them, it seems, when demand is very, very low. Now, you normally see that


with this higher level of competition, classical economics,


would say that the prices will therefore have to fall, but


actually, in the Netherlands, it's where most of this seems to have


been trialled just outside of Rotterdam, we're seeing prices rise


and people are paying eight cents more per gallon. Some allegations of


collusion. They look at what everyone else is doing, they're


charging higher and I'll put mine up? There is probably evidence of


collusion in similar industries which are low margin, very, very


high volume, but also, you know, things like groceries and food. The


algorism story is something we talk about a lot in markets and


algorisms, Emmanuel Macron win by French stocks, we are starting to


see that in real life. So your job will be redundant soon? Yes, I'll go


and sort out a smart watch company. The Independent has got a story that


our economics editor has written about as well. This chap here,


Matthew Taylor who is leading a review. This is to do with the rise


of the gig economy and Uber and we are less fulfilled? Yes, whether you


come home and that's your day done or whether you are having to do more


and more hours to bring the cash in to pay the bills. Most of the


western economies are still seeing that, unemployment is at 30 year


lows, nearly 40 year lows here in the UK, but the level of pay that


people are getting and obviously the level of GDP that you would assume


with everyone in work for nine hours a day for example isn't actually


coming through and whether we are starting to see these zer hour


contracts, you look at places like JD Sports and whether we need to see


a more political change for that moving forward. Jeremy, thank you


very much. That's all from us today. Same time same place tomorrow. Yes,


I will have my statistic ready. Good. I'll look out for it. See you




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