31/05/2017 BBC Business Live


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track to remain the fastest-growing economy in the world. Why from


London, it's our top story today on Wednesday the 31st of May.


India removed nearly 80% of bank notes from circulation but it hasn't


so far dented growth. We'll explain what happened and get the latest


figures from the Indian government a little later today.


One leading charity says half of all gamers have been harassed or


received threats. Markets are looking like this. The pound has


fallen sharply after fears that the Conservatives might not get the


majority in the general election that many are thinking may happen.


Hi Claire Castle may be better known as the filming location for down to


Gnabry but it's also home to Europe's most successful horse


racing ownership company. We'll get the inside track with Harry Herbert.


And it's been revealed the Bank of England's staff have been studying


Dr Seuss to brush up on communication skills because he has


been described as a master of using simple language. With like to know


what business language you think would benefit from the Dr Seuss


treatment. We promise no jargon here on


business Live. India has retained its crown as the fastest growing


major economy in the world. Economists are predicting Indian


economy grew by 7.1%, that's in the first three months of this year. But


would be faster than China which is currently at 6.9%.


The resilience of the Indian economy will be welcome news


for Prime Minister Narendra Modi following the country's landmark


That was when - at the end of last year -


the government removed around 86% of all banknotes from circulation


It led to widespread disruption and queues outside


banks and cashpoints, but the shock announcement seems to


And there could be more good news for the Indian economy next month


when consumers will see major tax reforms.


From July, all purchases will fall under a single "goods and services


tax" and that's lower the average rate charged now.


Sameer Hashmi has been following the story


You've been witness to those huge queueing and chaos that interviewed


after the banknotes were withdrawn. Many are expressing surprise about


these growth predictions, given how badly small businesses in particular


suffered. That's right. If these figures as estimated turnout to be


true it will be a bit of a surprise. The impact was huge after 86% of the


notes were banned especially small and medium-sized businesses were


badly hit. There are two reasons for these good numbers. Now the


government is using a new methodology to measure GDP. Just


explain that in simple terms, industrial output, the way they were


measured until now, didn't accurately capture the total picture


across the country. The government says the new methodology is going to


give a much clearer picture. Analysts say the new methodology is


more favourable when it comes to big businesses and doesn't reflect the


true picture when it comes to small businesses. That's why the number


that will come out today is going to be on the high side which is


expected to be 7.1. This figure is also for the period of January to


March which is when the real impact March which is when the real impact


took place. I was talking to one analyst who told me that if the


government would have measured this data, how they have been doing all


the while, the number wouldn't have been lower than that. Most are


expecting 7.1. The government says it introduced this radical measure


to try and cut down on corruption. Is there a sign this has happened


and what impact has there been an inward investment as a result? It's


still too early to say that the whole exercise has had any real


impact on corruption. The reason the government went ahead with that move


was because there is a lot of unaccounted wealth in this country,


which means a lot of people don't pay taxes. The government was trying


to bring all those people into the banking system so they can crack


those people and whether they are paying taxes or not. So far, the


data the central government has, it doesn't really give us exactly how


much of the money that was sucked out of the system was unaccounted


wealth. The tax authorities are still trying to chase people who


have declared investments, on how much amount they didn't pay the


taxes. It's still too early to say. As far as investments go, the


government has taken a lot of steps but private investment is still low.


Public spending has been driving the economy forward. Thank you for the


update. Let's take a look at some of


the other stories making the news. The pound has fallen more than 0.5%


against the dollar after a new poll found that the ruling


Conservative Party could fall short of an overall majority in next


month's general election. Previous polls suggest


Prime Minister Theresa May and her Conservative Party


would massively Shares in online retail giant Amazon


have risen above the $1,000 Back in 1997, the firm


listed its shares for just $18 each. The rise in share price now values


Amazon at $478 billion, Amazon is now the fourth-largest US


company, behind Apple, Uber has fired the engineer accused


of stealing secrets from Google's parent company Alphabet


after he failed to assist Anthony Levandowski,


previously worked on self-driving car technology at Waymo,


owned by Alphabet. He is accused of downloading 14,000


confidential files before leaving Uber denies it is using


stolen technology. Manchester United is the most


valuable football club in Europe, According to figures from KPMG it


puts it ahead of Spanish giants The study looked at broadcasting


rights, profitability, popularity, sporting potential


and stadium ownership. In the study of 32 teams,


English clubs dominate, If you're buttering your toes this


morning or making your sandwiches, butter consumption is rising


sharply. The cost rising 40% because wholesale prices are up more than


80%. That's because of global demand for butter. Everybody loves the


yellow stuff around the world. I like the quote, "I think the move


back to butter is only going to grow".


An investigation has been launched into the leak


of details of a new bank levy, which led to sharp falls in the


Tell us more about this leak and the bank levy. It all goes back three


weeks ago and the budget in Australia, with a surprise


banks. A surprise but not completely banks. A surprise but not completely


unheralded. In the 24 hours before the budget, they started to


circulate, it was reported the night before and the morning off in


different media. It seems that led to a big sell-off in shares of the


four big banks. Regulators say they want to check whether there was any


short selling and they want to know the provenance of the leak, how this


information reached the media before the Treasurer stood on his seat in


Parliament. The chair of the committee saying, we will hunt this


down, trying to make sure no one has profited from having this


information before it was made public. The levy is still


controversial, the banks still trying to fight it off. Thank you


for staying across that for us in Sydney.


Shares in Japan down slightly on Wednesday following that weaker


lead from the US and falling oil prices dragging down


We'll talk about that more in a moment.


But the story has been that fall in the pound after a new poll showed


Minister Theresa and the ruling Conservative Party in the UK risks


falling short of an overall majority in next month's national election.


The vote in Britain, political uncertainties in Italy


and doubts over debt relief for Greece all weighing


More on that in a moment, but first let's head Stateside


and Samira has the details about what's ahead on Wall Street.


Happening on Wednesday, the Federal Reserve, that is America's Central


bank, will be issuing its Facebook. This is a collection of anecdotes on


the help of the economy that is taken from the central bank sources


across the country. It will likely show the US economy is continuing to


gain strength, as the central bank prepares to raise interest rates


again, possibly as soon as the next meeting which happens in just a


couple of weeks. In earnings news, you would think that cyber security


firm would be doing pretty well these days especially in the wake of


so many ransomware attacks. But the firm Palo Alto Networks is expected


to report a fall in profits when it reports on Wednesday. The company


has faced rising competition in a hotly contested industry and is


struggling with issues with its sales force.


Maike Currie, investment director at Fidelity International.


We are talking about the market movements in more detail. It seems


as though its political concerns that are driving market sentiment,


particularly when you see how sterling is performing. Absolutely.


The election was expected to be a blip on the radar. The result was


going to be a foregone conclusion, Theresa May was going to increase


her majority in Parliament and that would enhance her Brexit-lite go


shooting hand. Now that seems to have changed, and it's weighing on


the currency. Now the pound is much weaker which is good news for the


FTSE 100. It's a stock market of overseas owners and if the pound


weakens that's good for those overseas exporters. This is only one


poll saying there could potentially be a hung Parliament. How much


confidence should investors have in polls given what has happened in


previous elections? The polls do get it wrong and of course, betting on


currencies is a zero sum game. While a weaker pound is good news for the


FTSE 100, it's bad news for the FTSE 250, the stock market of


medium-sized companies that optimistically focused. The best


thing investors can do is ignore the short-term noise. Quickly, what


happens if she doesn't get the big majority, what does it mean for


Brexit? It means that we could have a hung Parliament and that means


that the whole Brexit negotiating process, which is already clouded by


uncertainty becomes more uncertain. That will weigh on markets. Markets


height and macro hate uncertainty and Brexit is a huge unknown.


We meet the man behind one of Europe's most successful


horse racing companies and ask just how you buy


You're with Business Live from BBC News.


We're all feeling a bit more confident about the future,


but still worried about the economy, according to the latest data.


Research says rising inflation is proving a worry


Joe Staton is head of market dynamics at GFK.


You carried out this survey and people are still feeling quite


optimistic. Do you think that is justified? It is interesting, we


have done this survey since the 70s, on behalf of the EU so we have a


long track record on what consumers are feeling and behaving will stop


this is a consumer what we think and feel, not Mark Carney, Angela Merkel


telling us what to think and feel and what is interesting there is


still a lot of confidence. Your last presenter talked about uncertainty,


in the face of uncertainty, there is a high degree of consumer confidence


in the data we are reporting. Should we be surprised by uncertainty


because there are so many things going on at the moment it is hard to


know which way the economy is headed. How do you navigate that? I


think what is going on, there is hard data, GDP data, and soft data,


such as the consumer confidence survey we run. What is going on is


the two are matching. We see a level of confidence. It is just bumping


along the negative. After Brexit we saw it dropped dramatically, minus


12. The lowest it has been is the low 30s, during the beginning of the


last financial cycle. Consumer confidence is depressed but stable.


Not jumping around as one might expect. OK. Thanks for the update on


the consumer confidence survey. It seems we are generally not


optimistic but not getting more pessimistic. Perhaps because we have


some quite good numbers as far as exports are concerned. Excuse the


picture. This is salmon. One of the things we sell around the world. The


first three months of the year. Exports are up by 8.3%, ?4.9


billion, that is the largest first-quarter figure on record so


good news as far as exports from the UK are concerned. Details on the


website. You're watching Business Live -


our top story - official figures are expected to show that India has


retained its crown as the fastest Economists are predicting that


India's economy grew by 7.1% in the first three months


of the year. We will get those figures later.


This is what Europe is doing at this point in the morning. Sterling down


against the dollar after a poll that suggests Theresa May might not get


the majority expected. But it is one poll and they have been wrong in the


past. Now, you might enjoy a flutter


on the horses from time to time. Maybe at the Grand


National, or the Derby. But what about if you owned


a stake not in a race - Well, our next guest knows a thing


or two about doing just that. He's the founder and boss


of Highclere Thoroughbred Racing. It's one of Europe's most successful


horse racing ownership companies. It was founded in 1992 -


and since then has produced And when the horses do


well, so do the owners. It's raked in nearly


$8.5 million in prize money. Harry Herbert - the boss and founder


of Highclere - joins me now. Hello. Who buys stake in a


racehorse? Just how expensive is it?. As long as you can afford it,


it is how long is a piece of string? Shares go from ?5,000 to up to


?50,000 depending on which syndicate to come into but you can get


involved for a few hundred pounds in a racing club. Owning a part of a


racehorse is exciting and generates a buzz. I worked in Kentucky in the


state said it was just starting there in the 80s. Ownership and


racing of horses becoming more expensive, so their hat to be a


better way to do it and ideally a way that would not take away the


excitement of owning through fractional ownership done well and


with really good management and using the best trainers. That you


could come up with a concept that would make it fun. And he would not


have to spend a fortune. Do you do it as an investor for the love all


the money? The laugh. This is not an investment -- the love of it. If you


are lucky enough to get a really good racehorse and we have been


fortunate with a few champions and other good horses, they are worth an


enormous sum of money. The horse who won the Derby was bought for 75,000


unsold for millions. It is possible but you do not come into a syndicate


and thing, I am just going to have Dobbin. What is the relationship


like, do they become friends, do they fall at? We treat everybody as


if they own the horse out right. The amazing thing is you can put the


most abstract group of people together and the horse, it is the


glue that binds everyone together. Naturally people say I won't know


anyone, it might feel like I own the horse but it is the opposite. You


see people who would never meet in everyday life having the best time


imaginable. And they trot into the winner's enclosure together?


You talk about the highs and lows but your job involves tears. Job


satisfaction of seeing may be a FTSE 100 company chairman, chairwoman,


big is this person, in floods of tears when a horse wins. It brings


out an emotion that is completely alien to most people. It is


primeval, I think. It is the best part of the job. Just to say, they


are tears of happiness. Mostly tears of happiness, there are a few tears


of, oh, my God, not again! Is why the Queen does it, and so on. What


has it been like to see how Highclere Castle has been


transformed from when you were trying to sell cream teas to


renovate the building to now a global phenomenon? It is incredible.


My brother and sister-in-law, they run it now and have done for


sometime. I was involved and it was incredible. The transformation


between hanging baskets, cream teas, to suddenly having amazing events at


the castle and opening up the corporate angle. Movies. Tom Cruise


there, Nicole Kidman. The first cricket match South Africa played


was a Highclere. It has been phenomenal and Downton is a game


changer for Highclere and any stately home that get something like


it. Thanks for coming in. Best of luck.


New research shows that abuse and bullying in video games


The anti-bullying charity Ditch the Label said one in two gamers it


spoke to had been bullied or received threats.


Here's our technology correspondent Rory Cellan-Jones.


For 16-year-old Bailey, video games have been a big part


of his life and were once an escape when he was getting


He enjoys pitting his skills against other players online,


but what he doesn't like is the abuse he sometimes


He first experienced bullying in games when he was ten and it's


If I'm playing a game and I score a goal, I've literally been


If you're being bullied at school, you come home and play your computer


and you are just getting more abuse thrown at you.


It's just going to put you off doing anything social.


The charity Ditch The Label surveyed 2,500 young gamers.


57% said they had been subjected to hate speech in an online game.


47% had received threats and 40% had had unwanted sexual contact.


What's changed over the last decade is that more and more games


are played online and that means young gamers are encountering


anonymous people from around the world and chatting with them.


That can, of course, be very positive, but it also lays them open


for the kind of dangers we've seen elsewhere in the online world.


The anti-bullying charity worked with the online game


Habbo Hotel to research young gamers' experiences.


I think what's so shocking is the fact that it's


We had gamers telling us this was just part


Bailey says he has now learned not to let abuse get to him,


but he wants the games companies to do more to watch over


what happens online and to act to stop the bullies.


We can now talk through some of the stories in the business pages. We


have asked people to get in touch about the story Bank of England has


used children's books for lessons in clarity. It is fair to say that


financial sector has jargon words. I love this story because there is so


much jargon and dry language used. And it was the former deputy


governor who said they studied Dr Seuss to see how they could use


simpler language to engage the public. At a time of political


populism, this is the way forward, to engage people. Maybe without the


tongue twisters. I am used to reading Dr Seuss to my children and


at times it can be quite complicated.


A very good point. They talk about the quarterly inflation report, it


is about that thick and a challenge to get through it. It is about


telling stories simply. That is so important. To get people to engage


with finances, that is the only way. Mobile phones. There is a proposal


in London on the Underground you might be able to use your mobile


phone and some people around the world will find it astonishing that


you cannot at the moment where in Hong Kong and parts of China it is


the norm. I quite like not being able to use it on the Underground.


It is downtime. The tube is where you see people reading a book, not


senselessly browsing on their phone and playing games. There are flip


sides. We should probably have technology on the tube because


places like Paris and Tokyo have had it for years but the downtime is


valuable. Nobody speaks to you on the tube and if you have nothing to


read, you are a bit stuck. Gary says, I cannot stand business


jargon. Ice for redundancy. And in voluntary career event. Let's get


rid of that. Thanks for your company today. We will see you tomorrow.


Good morning. It was a cold start today across northern parts


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