:00:00. > :00:08.This is Business Live from BBC News with Sally Bundock and Ben Thompson.
:00:09. > :00:12.Could Brazil get a third president in a year?
:00:13. > :00:15.Amid claims of corruption, bribery and illegal funding
:00:16. > :00:18.we'll look at what next for the ailing economy.
:00:19. > :00:37.Live from London, that's our top story on Tuesday the 6th of June
:00:38. > :00:40.With ongoing protests, the stakes are huge
:00:41. > :00:43.for Latin America's biggest economy - which is just recovering from two
:00:44. > :00:50.We will talk you through what is at stake.
:00:51. > :00:52.Also in the programme, one of the world's biggest
:00:53. > :00:54.coal mines gets the go ahead in Australia.
:00:55. > :00:59.India's Adani group says protests won't stop the $12 billion project.
:01:00. > :01:02.And markets are in wait and see mode, with the UK election looming
:01:03. > :01:07.large and central bankers getting ready for key meetings.
:01:08. > :01:15.And forget Wi-Fi, forget Bluetooth - how about sending data with sound?
:01:16. > :01:18.We'll get the inside track on how the technology could revolutionise
:01:19. > :01:27.And staying with tech, Apple has launched its new smart speaker,
:01:28. > :01:30.It's called the HomePod but it's more expensive than rivals
:01:31. > :02:04.Get in touch with your views on the HomePod or anything else.
:02:05. > :02:07.It doesn't seem like all that long ago we were talking about Brazil's
:02:08. > :02:14.meteoric rise to economic stardom as one of the so called BRICs.
:02:15. > :02:18.But all that has come crashing down thanks to a string of corruption
:02:19. > :02:19.allegations involving top politicians and companies.
:02:20. > :02:22.And it could all come to a head again later today as Brazil's top
:02:23. > :02:24.electoral court resumes the case against the country's former
:02:25. > :02:33.President - Dilma Roussef- and her successor Michel Temer.
:02:34. > :02:36.They're accused of illegally funding their 2014 election win.
:02:37. > :02:41.This is how the economy has fared over the last five years.
:02:42. > :02:43.Since Rousseff was voted into office, there have been two
:02:44. > :02:45.years of recession - ending last week when growth
:02:46. > :02:54.of 1% was reported for the beginning of this year.
:02:55. > :03:00.She was impeached 10 months ago and succeeded by Michel Temer
:03:01. > :03:02.who has focused on economic reforms but could now be out
:03:03. > :03:07.Government policy and stability is important because non-financial
:03:08. > :03:15.companies owned by the state account for nearly 18% of the economy.
:03:16. > :03:20.The two biggest are Eletrobras and Petrobras.
:03:21. > :03:23.The latter is the state owned oil giant at the heart of the corruption
:03:24. > :03:29.allegations and was once the biggest company in Latin America.
:03:30. > :03:31.With me is Edwin Gutierrez, head of emerging-market sovereign
:03:32. > :03:36.debt at Aberdeen Asset Management in London.
:03:37. > :03:46.Nice to see you. Sally, talking through the issues at stake.
:03:47. > :03:51.What happens next, where are we in terms of these proceedings? We will
:03:52. > :03:59.hear more later today, but could we get to the stage where the last
:04:00. > :04:06.elections are in old and that Michel Temer has to leave office? It is a
:04:07. > :04:13.possibility. We now have this case up the electoral court, and we could
:04:14. > :04:20.conceivably get a judgment this week against Michel Temer. We would get
:04:21. > :04:25.new elections. One of the prospects is that one of the seven justices of
:04:26. > :04:30.the Supreme Court could request more time, which would delay a judgment.
:04:31. > :04:35.I wanted to get onto that. Anybody hoping for a swift resolution will
:04:36. > :04:39.be disappointed, it could be a protracted hearing. As you
:04:40. > :04:43.mentioned, the judge could ask for more time? There is a lot happening
:04:44. > :04:49.behind the scenes, most politicians and members of the judiciary. Many
:04:50. > :04:54.see this as the negotiation process. The request for more time, it could
:04:55. > :04:59.be discussions about if Michel Temer Falls, who is the successor? And
:05:00. > :05:10.then it would not happen until the major parties had agreed. What are
:05:11. > :05:13.the obligations of -- what are the implications of Brazil? It was one
:05:14. > :05:17.of the big players, but it hasn't played out how many people thought.
:05:18. > :05:22.The economy has been in recession and it is a difficult place to be?
:05:23. > :05:25.Absolutely, we finally had a quarter of growth after two years of
:05:26. > :05:30.recession, but it is quite reasoned and quite challenged. There is a lot
:05:31. > :05:36.of debt, especially in a household sector. Consumption is going to
:05:37. > :05:40.remain subdued. This latest episode affects the economy. It only further
:05:41. > :05:46.undermines recovery in investor sentiment, which is really key.
:05:47. > :05:52.Investment of GDP is a mere 16% and you cannot grow if you only
:05:53. > :05:58.investing 16%. Whoever becomes all remains the President, what is their
:05:59. > :06:06.top priority? The top priority is the ongoing process, we need to see
:06:07. > :06:10.either the Kelton met or a successor push pension reform across the line.
:06:11. > :06:19.That is the most critical reform investors are looking for. Also,
:06:20. > :06:20.businessmen in Brazil, to boost investor sentiment. Thanks for
:06:21. > :06:22.explaining that. Let's take a look at some of
:06:23. > :06:25.the other stories making the news. Investors will keep a nervous eye
:06:26. > :06:31.on Qatar's stock market today after the index slumped 7.3%
:06:32. > :06:34.yesterday after five Gulf nations cut financial and diplomatic
:06:35. > :06:47.ties with the country. It has risen in early trading today.
:06:48. > :06:51.Qatar is calling for talks to resolve the crisis.
:06:52. > :06:54.Qatar Airways has cancelled flights to Saudi Arabia, the UAE,
:06:55. > :06:56.Bahrain and Egypt after Etihad, EgyptAir, FlyDubai, Gulf Air
:06:57. > :06:58.and Emirates cut flights to and from the Qatari capital Doha.
:06:59. > :07:01.Apple and Amazon could join forces with Foxconn to bid for Toshiba's
:07:02. > :07:10.Toshiba needs to sell it to cover billions of dollars of cost overruns
:07:11. > :07:16.in its bankrupt nuclear US unit. US President Trump has said he plans
:07:17. > :07:19.to privatize America's air traffic control system,
:07:20. > :07:21.in what he called an air Mr Trump says the reform
:07:22. > :07:24.would deliver cheaper, faster, and safer travel
:07:25. > :07:26.as well as an economic boost that could be worth
:07:27. > :07:29.$25 billion to the economy. It's currently part
:07:30. > :07:31.of the government's Federal Aviation Administration
:07:32. > :07:42.employing 30,000 staff. Let's talk about a huge deal in
:07:43. > :07:45.Australia. A huge and controversial mine
:07:46. > :07:47.in North East Australia finally The $12 billion Adani project
:07:48. > :07:51.in Queensland will cover an area a quarter of the size of London
:07:52. > :07:54.but critics fear it will cause The Indian company behind it says
:07:55. > :08:12.those protests won't stop them. It is understandable why this is so
:08:13. > :08:17.controversial? Well, that is right. It is a controversial deal,
:08:18. > :08:21.investment, rather. It has been in the making for a while. Even Adani,
:08:22. > :08:26.after a lot of hurdles, has decided they will go ahead with the deal.
:08:27. > :08:28.They have given clearance to the investment plan and they plan to
:08:29. > :08:32.start the construction of the coal mine by the end of the year. Why is
:08:33. > :08:39.it controversial? Because there are two sides. It has deeply polarised
:08:40. > :08:43.Australians. On one hand, you have the Queensland communities, where it
:08:44. > :08:46.will be built, who feel it is a good investment because it will create
:08:47. > :08:52.jobs. Queensland has been lagging behind when it comes to development
:08:53. > :08:55.and jobs creation. Then you have climate scientists,
:08:56. > :08:59.environmentalists and activists that have been opposing it because they
:09:00. > :09:06.think it will really harm the already ailing Great Barrier Reef,
:09:07. > :09:10.and exasperate global warming, which is a big issue over there. They
:09:11. > :09:16.claim the amount of carbon dioxide it will emit will be much more than
:09:17. > :09:20.what countries like Kuwait and Chile do in a whole year. Clearly, it has
:09:21. > :09:26.divided the country. But Adani have said they are going ahead with it.
:09:27. > :09:29.An interesting story to highlight. Let's look at the markets and how
:09:30. > :09:36.the day is shaping up. This is how things went overnight in Asia. That
:09:37. > :09:44.is the United States... Shall I keep talking? That way! You can see them
:09:45. > :09:52.there. America had a rough ride, Japan followed suit. Japan, down by
:09:53. > :09:57.1%, with the yen strengthening. Let's look at Europe, while I sit
:09:58. > :10:01.down, because that is seemingly where the cameras are. Europe and
:10:02. > :10:05.France are down. Quite interesting, with the polls looking like the
:10:06. > :10:08.races tightening in the run-up to the election on Thursday, markets
:10:09. > :10:11.are a little bit more nervous than they were some weeks ago, with the
:10:12. > :10:17.outcome not as obvious. Let's chat about this with James Quinn. He is
:10:18. > :10:21.the business editor at the Telegraph. This is where the party
:10:22. > :10:25.is at. I should never have gone over there in the first place.
:10:26. > :10:31.Let's talk about Qatar. I know we'd talked about it in the news
:10:32. > :10:35.round-up, I think it is a fascinating story. Diplomatic,
:10:36. > :10:40.political, economic ties severed. What does it mean for Qatar? I think
:10:41. > :10:44.it means isolation, certainly in the Middle East. There has been no
:10:45. > :10:48.suggestion there is any isolation from the West, as it were. The UK is
:10:49. > :10:55.a big partner. Qatar is investing in a lot of things in the UK, it owns
:10:56. > :10:59.90% of the Shard, it owns Harrods, it owns the Olympic Village, it
:11:00. > :11:03.could be good for the UK in an odd way. Not cutting diplomatic ties
:11:04. > :11:06.with the West, but it is quite hard to get to if you think about things
:11:07. > :11:14.like air space and shipping routes. This is where energy intensive
:11:15. > :11:19.industries, things like aluminium, is struggling to get stuck in and
:11:20. > :11:24.out on a logistical basis? Yes, Qatar Airways are having to divert
:11:25. > :11:29.planes around the region. It has made most of its wealth on natural
:11:30. > :11:33.gas, and those pipelines are being stopped. The only intervention is
:11:34. > :11:38.from President Trump, saying he will calm the rift. He was recently
:11:39. > :11:42.there. I wanted to get your take on the run-up to the election in terms
:11:43. > :11:49.of how markets are digesting it. The pound is super-sensitive at the
:11:50. > :11:55.moment. Super volatile. As the polls narrow, the Tories have anything
:11:56. > :12:01.between a 12 point lead or a 1-point lead. Traders are not knowing what
:12:02. > :12:04.is priced in. At the moment, a close Tory win, Conservative Party win for
:12:05. > :12:11.Theresa May, that looks likely. Anything other than that will lead
:12:12. > :12:15.to volatility. It is so funny, we shouldn't read too much into the
:12:16. > :12:19.polls, of course, the last election told us that, and the EU referendum,
:12:20. > :12:24.and yet we have really wildly differing polls. There really is all
:12:25. > :12:29.to play for? The referendum last year, in the run-up, it seemed a
:12:30. > :12:36.likely Remain vote. The pound when surging. It was almost $1.50. And
:12:37. > :12:43.then as the result became clear, it fell away. We will keep a very close
:12:44. > :12:46.eye on that. We will talk more about some stories later in the papers.
:12:47. > :12:48.Still to come, sent at the speed of sound.
:12:49. > :12:51.We meet the firm that's come up with an alternative to sending
:12:52. > :12:53.digital data via Bluetooth and Wi-Fi by using sound.
:12:54. > :13:08.You're with Business Live from BBC News.
:13:09. > :13:11.Home appliance retailer AO has warned of tough trading conditions
:13:12. > :13:13.despite posting a 40% increase in UK profits The online retailer
:13:14. > :13:15.faced rising losses in their European business -
:13:16. > :13:18.partly down to the cost of expanding the business into Europe.
:13:19. > :13:30.Theo Leggett has been going through the numbers.
:13:31. > :13:36.Talk us through what they show. It's a really interesting business. It is
:13:37. > :13:40.the sort of thing you used to buy an High Street, now we do it online and
:13:41. > :13:49.it is done very well. But the cost of Europe is quite significant?
:13:50. > :13:53.Absolutely. AO, it initially stood for Appliances Online. It has been
:13:54. > :13:58.around for 15 years but has had large expansion over the last few.
:13:59. > :14:01.Floated on the stock market on 2014, shares shooting up on a wave of
:14:02. > :14:05.enthusiasm. Recently they had been at a much lower level. They have
:14:06. > :14:09.been trying to expand a lot, particularly in Germany and the
:14:10. > :14:13.Netherlands. That accounts for a large proportion of the operating
:14:14. > :14:17.loss which they posted. They posted an operating loss of ?12 million
:14:18. > :14:22.compared to ?10 million last year. In the UK, things have been rather
:14:23. > :14:26.better. Both revenues and sales are up, revenues up 17%. This is a
:14:27. > :14:30.business that is not yet profitable. It is trying to grow its business.
:14:31. > :14:41.Revenues and sales are very important. The problem is, things
:14:42. > :14:43.like washing machines, dishwashers and the like, most of them are
:14:44. > :14:46.imported. With the pound sterling falling to levels it is that now
:14:47. > :14:48.since the EU referendum, importing those things has been more
:14:49. > :14:50.expensive. The company says it has created a mixed trading environment
:14:51. > :14:53.and it expects things to get tougher as we go forward over the next few
:14:54. > :14:57.months. What the chief executive has been saying is that circumstances
:14:58. > :15:01.have become more challenging due to the impact of dampening consumer
:15:02. > :15:04.confidence following the vote to leave the EU, subsequent price
:15:05. > :15:11.inflation and a slowdown in the housing market. So, a mixed picture.
:15:12. > :15:15.The business is still growing. It expects that growth to slow over the
:15:16. > :15:20.next few months. It is not making money yet, but it is building for
:15:21. > :15:25.the future. It will come out in the wash! Thanks for your analysis.
:15:26. > :15:28.You've been waiting all morning for that. Don't get in a spin about the
:15:29. > :15:41.results! Splenic... EasyJet telling us a 9.5% rise on
:15:42. > :15:46.last year and it's load factor. How full the planes are.
:15:47. > :15:49.It's steady 91.5%. You're watching Business Live.
:15:50. > :15:56.Our top story: Latin America's biggest
:15:57. > :16:00.economy could get a third One of the Brazil's top courts
:16:01. > :16:05.could annul the 2014 election over claims of corruption
:16:06. > :16:12.and illegal funding. We have been across that story.
:16:13. > :16:14.Further details throughout the day on the BBC.
:16:15. > :16:21.A quick look at how markets are faring.
:16:22. > :16:34.They are headed lower. Markets treading water with bigger events
:16:35. > :16:37.later in the week like a general election in the UK.
:16:38. > :16:40.With the internet of things, more and more everyday objects
:16:41. > :16:45.But what about devices which don't have wi-fi or a way
:16:46. > :16:53.Well, Chirp is an app which encodes data into sound waves and can be
:16:54. > :17:00.used by almost anything with a speaker and microphone.
:17:01. > :17:02.In fact you could already be using the technology.
:17:03. > :17:06.It's running on hundreds of millions of devices around the world.
:17:07. > :17:08.But it does have big constraints, most "chirps" last for
:17:09. > :17:10.a couple of seconds and can only transmit a very
:17:11. > :17:13.limited amount of data, enough to send a web address.
:17:14. > :17:16.With us now is Moran Lerner, chief executive of Chirp.
:17:17. > :17:22.Nice to see you. Welcome to the programme. We tried there to explain
:17:23. > :17:26.it, but you better do it because I think it's fascinating as a
:17:27. > :17:31.technology. We're reliant on Bluetooth and wi-fi to transmit all
:17:32. > :17:37.sorts of things. How does Chirp work? It is limited in what it can
:17:38. > :17:45.send? It is limited in the data packets we send. We used to be an
:17:46. > :17:49.app. And it is fair to say we are now a business to business company
:17:50. > :17:53.where we've developed a suite of software development kits and our
:17:54. > :17:57.clients around the world are able to embed our technology quite simply in
:17:58. > :18:00.many cases in under three minutes. So they can take that technology and
:18:01. > :18:05.put it in their own platforms? Correct. Because we work across all
:18:06. > :18:09.platforms, we have gone beyond the smartphone, you can embed it into
:18:10. > :18:14.smart devices and some advanced robotics companies are using our
:18:15. > :18:22.technology. Apps, every day apps that are used, gaming, it is used in
:18:23. > :18:29.the latest Skylanders game and we are about to announce a
:18:30. > :18:37.revolutionary new interactive toy with a company called High Jinx. So
:18:38. > :18:40.the idea this toy will be in the lounge with a toddler and when a
:18:41. > :18:43.certain programme is on the TV the toy will interact with the TV
:18:44. > :18:50.because the sound is activating the toy? Absolutely. The beauty of sound
:18:51. > :18:55.is that it's portable and it's everywhere. So you can have a device
:18:56. > :18:59.and I can show you how it works simply, both the device is off line
:19:00. > :19:03.so you don't need any connectivity of any kind to use Chirp. So this
:19:04. > :19:09.one will speak to this one? That's right.
:19:10. > :19:15.It has appeared there. I can move to a different area on the screen and I
:19:16. > :19:20.will know the location of the other device. Unlike Bluetooth and wi-fi
:19:21. > :19:26.is I can have one million devices around me with our software.
:19:27. > :19:30.I suppose that relies on the sound wave being unique because it has to
:19:31. > :19:34.identify a specific thing. We're surrounded by sound every day, it
:19:35. > :19:40.has to pick up that one precise sound that will only play for a
:19:41. > :19:46.split second. Our standard chirps are that one split second or 1.7
:19:47. > :19:50.seconds, but we are able to customise it, if we want to send
:19:51. > :19:54.longer data packets it can be longer. It depends on the device and
:19:55. > :19:58.what our customers want to use it for. Give us some applications.
:19:59. > :20:03.Sally mentioned toys, you mentioned being able to send web addresses.
:20:04. > :20:09.What would you like it to be used for? We would like it to be the next
:20:10. > :20:12.protocol, but we're not trying to compete with Bluetooth and wi-fi.
:20:13. > :20:17.We're trying to complement what they do. You were explaining to me
:20:18. > :20:23.earlier that it's used in the nuclear industry? Yes. If you take
:20:24. > :20:28.the nuclear industry and a lot of other industries in manufacturing
:20:29. > :20:32.and industrial settings where you have radio frequency restrictions.
:20:33. > :20:37.Whether it be from the manufacturing site itself, whether it be from
:20:38. > :20:42.electromagnetic fields that are created during manufacture, sound
:20:43. > :20:47.though isn't interfered with and therefore, it's not dangerous and
:20:48. > :20:52.won't cause explosions. How you make money is simple - the licence? Our
:20:53. > :20:56.clients have unlimited use of our technology to do with it what they
:20:57. > :21:02.want. It's so interesting to hear about this. This is why I love this
:21:03. > :21:05.slot on the programme. A toy in my lounge would drive me mad. Too much
:21:06. > :21:10.noise already! Thank you very much for coming in
:21:11. > :21:12.and explaining that. The Chief Executive of the Chirp. Come back
:21:13. > :21:16.and see us soon. I will do. Apple is joining the market
:21:17. > :21:18.for voice activated speakers, Yes, the device was launched
:21:19. > :21:22.at Apple's annual developers It's called the HomePod and can
:21:23. > :21:27.respond to questions and control devices such as lights
:21:28. > :21:28.and central heating. It's their new smart speaker
:21:29. > :21:37.which they're billing primarily as a music device rather
:21:38. > :21:40.than a smart assistant like They're saying it has spatial
:21:41. > :21:45.awareness so it should fill the room with sound in the way
:21:46. > :21:53.that those competitors don't. And I'm not allowed to touch it
:21:54. > :21:57.and nor can I hear it so I can't actually tell you how good this
:21:58. > :22:00.thing is just yet, but what I can tell you it will be coming
:22:01. > :22:02.out later this year. First released in the US,
:22:03. > :22:06.in the UK and also Australia. Other countries coming
:22:07. > :22:08.in the New Year, but one of the potential down sides is that
:22:09. > :22:11.you need an Apple music subscription in order to get
:22:12. > :22:13.the full integration. So if you prefer to use Spotify
:22:14. > :22:16.or Pandora, maybe not quite the device for you,
:22:17. > :22:18.but Apple are pretty confident that this is going to give them
:22:19. > :22:22.a good part of the market in this The name has to grow on me.
:22:23. > :22:25.It just does not. It makes a lot of sense,
:22:26. > :22:28.right and it really speaks to where I think Apple wants
:22:29. > :22:30.to position this device Is the fact that Apple seem to be
:22:31. > :22:36.focussing on the fact it's a music device,
:22:37. > :22:42.is it a kind of a cover-up for Sire not being a very good assistant
:22:43. > :22:44.compared to Google Home, I take your point and yes,
:22:45. > :22:50.the criticism you know as far as how Sire is not as smart
:22:51. > :22:52.as Google Assistant, I think that's a fair criticism to make,
:22:53. > :22:55.but I do think it is a different approach and not driven
:22:56. > :22:57.by necessity, but driven Dave Lee there finding out what the
:22:58. > :23:14.Homepod smart speaker is about. James Quinn is joining
:23:15. > :23:25.us again to discuss. We know it is a tough market
:23:26. > :23:31.already? It is crowded. Amazon has got Alexa. It is a crowded market.
:23:32. > :23:36.Apple invented Sire and came late to the market with a device that allows
:23:37. > :23:44.you to talk to Sire. Others are cheaper. Sorry, the viewers picked
:23:45. > :23:47.up on that. Hugh says says it is an overpriced Bluetooth speaker, stick
:23:48. > :24:00.the logo on it and inflate the price. Patrick says, "Why would I
:24:01. > :24:03.want to change my Bowes system?" It ties you in because maybe you have
:24:04. > :24:08.an iPhone and think to talk to it, I'll use an iPad and you maybe have
:24:09. > :24:14.a McBook and this is the latest in that suite of things. It is a great
:24:15. > :24:19.way of galvanising the fan guys and fan girls into spending more money
:24:20. > :24:24.withalle. None of you have got one of these devices. I've got one and I
:24:25. > :24:32.unplugged it. You have got one? It was a gift! The children were
:24:33. > :24:35.ordering it to do all sorts, order pizzas and all sorts of things.
:24:36. > :24:42.Enough is enough to quote someone else! Let's talk about gin and
:24:43. > :24:47.tonic. The gin craze is seeing the Government make more money on taxes
:24:48. > :24:53.on gin than they have done on beer for the first time? The average
:24:54. > :24:57.percentage is 76% of bottle a ging goes on VAT and on duty which is
:24:58. > :25:05.high compared to 60% for a pint of beer. But it has resulted in a large
:25:06. > :25:14.intake... A large intake of gin, you're right! You can't move for gin
:25:15. > :25:21.this country. In your world, maybe, Ben, in my world, I'm trying to
:25:22. > :25:26.fend-off pizzas! LAUGHTER
:25:27. > :25:32.It's a huge boom. It is a craze. Tonics and people making gin, gin,
:25:33. > :25:42.some people loved it and some people didn't like the taste. They are
:25:43. > :25:49.making it more palatable. What is a gin toll gist? Someone who makes
:25:50. > :25:54.cocktails. We're off for a gin! , hot, dark tea!
:25:55. > :26:00.Very strong coffee, I meant to say. I need. I have been here too long.
:26:01. > :26:11.I'm going to bed. We're here tomorrow. Thanks for watching.
:26:12. > :26:13.Hello. Heavy rain and strong winds are not things we