26/06/2017

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:00:00. > :00:21.Live from London, that's our top story on Monday 26th June.

:00:22. > :00:24.Japan's auto supplier Takata has had to recall more than 100 million

:00:25. > :00:30.They've been linked to more than a dozen deaths globally.

:00:31. > :00:36.And forging closer business ties between the world's biggest

:00:37. > :00:39.and the world's fastest growing economies as the US

:00:40. > :00:40.president welcomes India's Narendra Modi to Washington.

:00:41. > :00:43.And we'll be getting the inside track on waste busting.

:00:44. > :00:45.It's an unglamorous job, but cleaning up industry's

:00:46. > :00:57.The fair trade system could be under threat.

:00:58. > :01:00.Let us know, do you buy fair trade goods to do good or really

:01:01. > :01:14.The Japanese company behind the biggest recall in car-making

:01:15. > :01:25.Takata's airbags were first found to be faulty in 2004.

:01:26. > :01:28.They were used by 13 of the world's biggest car makers who have

:01:29. > :01:32.all agreed to bankruptcy proceedings in courts in both Tokyo and the US.

:01:33. > :01:36.This CEO Takata said this morning he would step down.

:01:37. > :01:38.Worldwide more than 100 million Takata airbags,

:01:39. > :01:41.which can rupture with deadly force and spray shrapnel at passengers,

:01:42. > :01:47.The faulty airbags have been linked to at least 17 deaths and more

:01:48. > :01:53.$9 billion is the estimated cost according

:01:54. > :02:06.The firm Key Safety Systems has now bought all of Takata's assets

:02:07. > :02:14.except those relating to the faulty airbags for almost $1.6 billion.

:02:15. > :02:21.We have been following the story from our Asia business hub in

:02:22. > :02:26.Singapore. There was a press conference today. What did Takata

:02:27. > :02:32.have to say? The CEO has come under criticism for how he has handled

:02:33. > :02:37.this scandal. Indeed. He is the grandson of the company's founders.

:02:38. > :02:42.As you mentioned, the first accident causing an injury happened in 2004,

:02:43. > :02:46.and the company has been accused of covering that up and not doing

:02:47. > :02:51.anything about it. It took them in fact a decade before the New York

:02:52. > :02:56.Times reported on it, and then the company finally admitted full

:02:57. > :03:00.responsibility. He has been criticised repeatedly for

:03:01. > :03:05.mishandling the crisis. He promised that he would step down once the new

:03:06. > :03:10.management takes over. I think the big question among drivers who might

:03:11. > :03:15.be concerned that their cars and airbags might be affected is whether

:03:16. > :03:18.they can continue to get the replacement and Takata has said that

:03:19. > :03:26.despite the bankruptcy findings, customers can continue getting free

:03:27. > :03:31.replacements. Takata is not just any old firm, is it? Can you give me the

:03:32. > :03:37.impact this bankruptcy has on the corporate scene, the reputation of

:03:38. > :03:42.people in Japan? The company is 84 years old and it has been around for

:03:43. > :03:49.a long time. It was once known as one of the really good quality

:03:50. > :03:53.Japanese product companies. Other than those airbags, they also make

:03:54. > :03:57.seat belts and child seats, for example. That is why this American

:03:58. > :04:03.company has decided to buy all the assets not related to airbags.

:04:04. > :04:08.Because of the alleged cover-up and because of the way this scandal

:04:09. > :04:14.continued, if you remember they still don't know what caused the

:04:15. > :04:18.airbags to practically blow up, so that has really damaged the

:04:19. > :04:22.company's reputation as well as the reputation of corporate Japan, in a

:04:23. > :04:24.way. Thank you very much for that update. We can now take a look at

:04:25. > :04:28.other stories making the news. Italy's government is bailing out

:04:29. > :04:30.two banks in the Venice region. The move comes two days

:04:31. > :04:36.after the European Central Bank warned that Banca Popolare di

:04:37. > :04:38.Vicenza and Veneto Banca Italy's Prime Minister says

:04:39. > :04:42.the rescue was needed to protect savers and ensure the good health

:04:43. > :04:45.of the country's banking system. The UK's biggest health food

:04:46. > :04:48.retailer Holland Barrett is being bought by a Russian

:04:49. > :04:53.billionaire for about $2.3 billion. The chain is being bought

:04:54. > :04:56.by L1 Retail which is controlled Holland Barrett also has stores

:04:57. > :05:01.across Europe and in emerging markets including the Middle East,

:05:02. > :05:05.China and India. There's been another successful

:05:06. > :05:09.launch for Space X in its efforts to perfect the technology behind

:05:10. > :05:13.reusable space rockets. This time it launched 10

:05:14. > :05:17.communication satellites from California before the rocket

:05:18. > :05:20.landed on a platform at sea. The company's chief executive

:05:21. > :05:22.Elon Musk tweeted that its new titanium grid fins worked even

:05:23. > :05:38.better than expected. Do you know what a detainee in grid

:05:39. > :05:43.Finn is? No! I have been trying to work it out and I have not been

:05:44. > :05:49.successful. Reusable rockets. What else is happening on the BBC

:05:50. > :05:56.Business Live page? It is a look back in history. 20 years today

:05:57. > :06:02.since the publication of Harry Potter And The Philosopher's Stone.

:06:03. > :06:11.$7.7 billion has been made out of the books. We have two pictures of

:06:12. > :06:15.trains now. We are very excited. And Hornby say they have not been

:06:16. > :06:20.offered enough. They both look very similar. The Hogwarts picture there,

:06:21. > :06:26.the Hogwarts Express, and the Hornby train. And I think you can get a

:06:27. > :06:34.Hornby train that looks like the Hogwarts strain. That is a boy's

:06:35. > :06:37.thing. Let's move on because we want to check out what has been happening

:06:38. > :06:39.in the financial markets. Lots of stories making an impact today,

:06:40. > :06:41.particularly this one. Three Australian employees

:06:42. > :06:45.of Crown Resorts have been jailed in China

:06:46. > :06:55.for illegally promoting gambling. What has happened. The Chinese

:06:56. > :07:04.courts are nothing if not efficient. This trial began in the morning and

:07:05. > :07:08.was over by lunchtime. The head of international VIP high roller

:07:09. > :07:14.operations for Crown Resorts received a ten month sentence. Two

:07:15. > :07:18.other executives received nine-month sentences. They and 16 other staff

:07:19. > :07:23.pleaded guilty to the promotion of gambling in China. Presumably they

:07:24. > :07:29.thought they were operating in a sort of grey area here but it is

:07:30. > :07:32.illegal in mainland China. The authorities didn't see the

:07:33. > :07:38.operations as OK and they picked them all up in October last year. If

:07:39. > :07:42.there is a silver lining for this Australian casino operation, it is

:07:43. > :07:46.that the sentencing according to Australia's Consul general in

:07:47. > :07:52.Shanghai, started from the time they were detained. I guess they only

:07:53. > :07:54.have a few more months to go. Certainly their reputation will be

:07:55. > :08:01.tarnished and they will not be looking like they have been,

:08:02. > :08:05.certainly not promoting to Chinese high rollers. They are trying to

:08:06. > :08:08.drag these into Australian casinos and they will have to find a

:08:09. > :08:12.different way to do it from the way they have been. Thank you.

:08:13. > :08:14.Shares in Asia have edged up with the Nikkei ending in positive

:08:15. > :08:22.Trading generally has been slow though as some markets

:08:23. > :08:24.across the world are closed today to celebrate the end of Ramadan.

:08:25. > :08:31.Oil prices rose more than 1 percent on a weaker dollar,

:08:32. > :08:34.but another rise in US drilling activity added worries

:08:35. > :08:40.will persist despite an OPEC-led effort to curb output.

:08:41. > :08:45.That is shale gas drilling of course.

:08:46. > :08:49.Samira Hussain has the details about what's ahead on Wall Street today.

:08:50. > :08:54.Kicking off the week in a world of business, India's Prime Minister

:08:55. > :08:59.Narendra Modi will be in Washington on a two day visit. While there, he

:09:00. > :09:03.will be meeting with President Donald Trump, which will be the

:09:04. > :09:07.first face-to-face meeting for the two leaders. Trade, business and

:09:08. > :09:14.immigration will likely be on the agenda. Jury selection for the fraud

:09:15. > :09:20.trial begins this week. The accused is best known for increasing the

:09:21. > :09:25.price of a drug from $13.50 per tablet to $750. He is accused of

:09:26. > :09:30.securities and wire fraud stemming from two hedge fund that he founded

:09:31. > :09:33.and ran. He denies the charges. And finally a three-day auction takes

:09:34. > :09:40.place in Hollywood. Some of the items up for sale, the costume that

:09:41. > :09:42.Leonardo DiCaprio war on the film Titanic and the light sabre used by

:09:43. > :09:49.Luke Skywalker in the Star Wars films. That is happening on Wall

:09:50. > :09:51.Street later. We can focus on Europe now.

:09:52. > :09:54.Joining us is James Hughes, chief market analyst at GKFX.

:09:55. > :10:01.Let's talk about the Italian banks being bailed out again. Will this

:10:02. > :10:07.stop the rot or is there more to come? I don't think it will stop the

:10:08. > :10:10.rot. What we have seen here was inevitable. We did kind of know

:10:11. > :10:21.about this situation. I thought they would get by without any bail-out.

:10:22. > :10:24.Banca Popolare is one of those that has been struggling for a long time

:10:25. > :10:28.and the Italian economy has not been performing very well. If the economy

:10:29. > :10:33.doesn't do well, it tends to filter down to the banks. The question is

:10:34. > :10:36.does it solve any problems? The problem with the whole eurozone, if

:10:37. > :10:41.you look at Greece, are just kicking the can down the road? With Greece

:10:42. > :10:46.we were. We bailed out banks and the entire country. In Italy we have

:10:47. > :10:49.seen a similar thing in terms of bailing out the banks. The lines

:10:50. > :10:54.coming from the government are that this helps savers and it protects

:10:55. > :10:57.the financial system. But we don't necessarily believe that it does. We

:10:58. > :11:01.have a banking stress test in Europe. We know that a lot of them

:11:02. > :11:05.are pretty much PR jobs. Stress tests are all about building up a

:11:06. > :11:12.financial buffer for a crisis ahead. Have the banks really done that to

:11:13. > :11:15.that extent? If that was the case, these two banks would not need cash

:11:16. > :11:18.to be bailed out with. In the UK, some of the capital reserves is

:11:19. > :11:24.pretty considerable now in the big banks. It is impressive. And the US

:11:25. > :11:28.banks and the UK banks, they both have a lot of money. But if you live

:11:29. > :11:32.at the eurozone as a whole, we say it is getting better and the economy

:11:33. > :11:36.is getting better. But when we look at the eurozone as a whole, we see

:11:37. > :11:40.Germany getting better and the German economy is incredibly strong.

:11:41. > :11:46.What about Spain? Spain is doing pretty well. Much better from an

:11:47. > :11:51.incredibly low point. And France. It is not totally Germany, is it? Not

:11:52. > :11:53.totally but if you look at the finance minister of Germany, he is

:11:54. > :11:57.constantly asking the ECB to remove the stimulus that is helping them,

:11:58. > :12:01.because there are fears that the German economy will overheat. There

:12:02. > :12:04.is that imbalance, divergences across the board, and there is a

:12:05. > :12:09.fear of picking a problem down the road across the eurozone which we

:12:10. > :12:12.have been doing for ten years. Thank you.

:12:13. > :12:15.Cleaning up after industry and its mistakes.

:12:16. > :12:17.We're talking to the boss of a firm that makes

:12:18. > :12:19.sure the legacy of business is not pollution.

:12:20. > :12:28.You're with Business Live from BBC News.

:12:29. > :12:32.The UK could be set for years of weak and anaemic economic growth.

:12:33. > :12:36.That's the warning from trade body the British Chambers of Commerce.

:12:37. > :12:39.They predict growth of just 1.5% by 2020 whilst inflation

:12:40. > :12:50.could remain high and peak at 3.4% this year.

:12:51. > :12:53.It says the inconclusive election result has made businesses wary.

:12:54. > :12:58.Suren Thiru is the head of economics at the BCC and he joins us now.

:12:59. > :13:05.Why exactly? Why do you think growth will tail off because it has been

:13:06. > :13:08.pretty good up until now? What we expected the next few years is a

:13:09. > :13:12.period of more subdued growth, as you say. There is a number of

:13:13. > :13:16.reasons for that. Inflation will be key for the UK economy, hurting

:13:17. > :13:22.consumers and businesses alike. It will impact on consumer spending

:13:23. > :13:25.which is a key of UK growth. What we will also see our long-term

:13:26. > :13:31.structural issues affecting the UK economy. The consumer spending

:13:32. > :13:34.tribal hurt our economy and investment has been fairly weak

:13:35. > :13:39.given the political uncertainty. And with Brexit over the long-term. But

:13:40. > :13:42.there have been a lot of these forecasts before in the past.

:13:43. > :13:47.Particularly forecasts about what will happen immediately post-Brexit

:13:48. > :13:53.vote and they have not materialised to the extent that was forecast. We

:13:54. > :14:04.saw growth slowing in the first quarter of this year 20.2%. -- down

:14:05. > :14:10.to 0.2%. That could be a sign. Investment and inflation --

:14:11. > :14:15.inflation is a challenge. It affects businesses because of the cost of

:14:16. > :14:18.raw materials. And it affects wage growth as well. That will impact on

:14:19. > :14:26.the growth and spend. There is some good news in there. 2017 will be

:14:27. > :14:32.good for exporters. The weaker sterling is making some businesses

:14:33. > :14:35.more competitive abroad. We also seeing an improved global economic

:14:36. > :14:39.outlook. Stronger figures from the eurozone and other key markets,

:14:40. > :14:45.which will help to boost UK export growth the coming year. That is

:14:46. > :14:46.good. Thank you very much. Head of economic is at the British Chambers

:14:47. > :14:58.of Commerce. The Co-op Bank is no longer for

:14:59. > :15:01.sale. This has been tweeted by Dominic O'Donnell our business

:15:02. > :15:14.correspondent. We will be talking to him about it later.

:15:15. > :15:18.You're watching Business Live. Our top story:

:15:19. > :15:21.The Japanese airbag and car parts manufacturer has filed for

:15:22. > :15:24.bankruptcy. A quick look at how

:15:25. > :15:27.markets are faring. Europe's major stock indices

:15:28. > :15:31.have advanced on opening following a similar path to stocks

:15:32. > :15:36.in Asia which edged up earlier. Oil prices have also risen,

:15:37. > :15:38.but another spike in US drilling activity stoked worries that

:15:39. > :15:46.a global supply glut will persist. Now let's get the inside track

:15:47. > :15:49.on a subject we don't touch on much, but matters a lot

:15:50. > :15:51.- water treatment. Many industrial projects

:15:52. > :15:52.cause pollution. Often it's after an accident

:15:53. > :15:57.such as an oil leak. Our next company does just that -

:15:58. > :16:03.from mopping up oil in the Med to keeping 2022

:16:04. > :16:07.Qatar World Cup projects clean. Dr Richard Coulton founded

:16:08. > :16:12.Siltbuster in 2003. It's a relatively small firm,

:16:13. > :16:16.employing 55 staff, based in Wales, While the UK is a key market,

:16:17. > :16:23.it also exports to 32 countries. With some high-profile jobs

:16:24. > :16:32.including the UK's Olympic Park, clearing up spilt oil

:16:33. > :16:33.in the Mediterranean Sea when the stricken Costa Concordia

:16:34. > :16:46.was raised and keeping pollution Well, of course, I'm pleased to say

:16:47. > :16:49.in our latest of the CEO secret theories, the boss is here. Good

:16:50. > :16:58.morning. Tell us how the business began. Business began around about

:16:59. > :17:01.2000 when I was involved in treating some contaminated water from mine

:17:02. > :17:05.water discharges and a colleague asked if I could do the same for the

:17:06. > :17:17.construction industry and I realised that construction companies want

:17:18. > :17:20.equipment to hire and not buy,. So you're a hire shop really? We have

:17:21. > :17:26.got a lot of engineers and equipment. Probably over 300 pieces

:17:27. > :17:29.of equipment. What we do is put together short-term treatment

:17:30. > :17:32.solutions. It is like Lego bricks for water treatment. Today we might

:17:33. > :17:36.have a red and a green, and tomorrow, it might be a yellow and

:17:37. > :17:40.purple. So we provide the know how and the equipment to the companies

:17:41. > :17:46.to solve their problem. Talking about the Costa Concordia disaster.

:17:47. > :17:54.Yes. How did you minimise pollution there? Halfs the pollution. They had

:17:55. > :17:58.to drill 30 big holes into the rock and in doing that, they grind the

:17:59. > :18:02.rock up and that causes a lot of pollution, very fine rock particles

:18:03. > :18:07.which can blocks the gills of fish and smother the sea bed and kill off

:18:08. > :18:10.aquatic life. Part of our role was to take that water from the drilling

:18:11. > :18:16.operation and remove the fine rock particles so that the water could be

:18:17. > :18:23.put in the sea. Where was the equipment? On a barge. Where do you

:18:24. > :18:27.put the mess? The mess was actually dewatered and taken away to a

:18:28. > :18:32.landfill. As rock powder. How quickly can you set-up the business?

:18:33. > :18:40.And move the water treatment plants? A matter of days really. We did a

:18:41. > :18:46.large food factory. We got to site within three days and that was for

:18:47. > :18:49.Europe's largest food factory. What you are doing, everybody, it is one

:18:50. > :18:54.company's bad news is your good news. In a way, you are an ambulance

:18:55. > :18:59.chaser, that's a very rude way of saying it, but you are chasing after

:19:00. > :19:03.problems. What I want to point out, because you're doing that, surely

:19:04. > :19:10.you can charge what you like because these people are panicking? We're

:19:11. > :19:15.not that clever! We basically charged fixed rates for whether it

:19:16. > :19:20.is a short-term or long-term hire. Aren't you tempted when someone has

:19:21. > :19:25.a disaster and they may get prosecute? The temptation but people

:19:26. > :19:31.know what market price is and to keep life simple we have a fixed

:19:32. > :19:36.flat rate. The sales guys can go to an inquiry and they know what we're

:19:37. > :19:43.going to charge and they can come away with positive feedback. Do you

:19:44. > :19:49.rely on companies polluting for your business to expand? We rely on

:19:50. > :19:53.preventing companies from polluting polluting. As the recent legislation

:19:54. > :19:59.and court cases show that companies are now more aware of their

:20:00. > :20:02.environmental responsibility and as such, are relying more on us to help

:20:03. > :20:04.them when they have got a short-term problem. Thank you very much indeed

:20:05. > :20:08.for coming in. Now for the latest in our CEO

:20:09. > :20:11.Secrets series where business Whitney Wolfe launched dating

:20:12. > :20:16.app Bumble to put women Yes, on Bumble, only women can

:20:17. > :20:23.initiate conversations. She's also a co-founder of

:20:24. > :20:26.the better known dating app Tinder. So what advice does she wish

:20:27. > :20:29.was given when she started up? The one piece of advice I wish I had

:20:30. > :20:34.when I started out would be to not Never neglect the things

:20:35. > :20:51.that matter most in life which is your friends,

:20:52. > :20:55.your family, your health. I think work is amazing and finding

:20:56. > :20:58.success is very rewarding, but there's no reward in the end

:20:59. > :21:01.if you neglected the things So it's incredibly important,

:21:02. > :21:08.regardless of how tired or busy or overloaded

:21:09. > :21:11.you are in your day-to-day, you must take time to call your grandparents

:21:12. > :21:14.or call an old friend or take an afternoon off to spend time

:21:15. > :21:17.with your parents if you're so lucky to have these people

:21:18. > :21:24.around you still. Remember to stay grounded

:21:25. > :21:27.and to remain humble and grateful. Without those values,

:21:28. > :21:46.you have nothing in the end. We were looking at your tweet

:21:47. > :21:51.earlier about the Co-op Bank. That's good news today. The Co-op Bank has

:21:52. > :21:57.been in trouble since the financial crisis. The Co-op itself got into

:21:58. > :22:02.trouble in 2008, 2009. It put itself for sale, but now the sale has been

:22:03. > :22:07.called off because it is in talks about its existing investors. It is

:22:08. > :22:13.amusing the Co-op has been saved by what people think might not be

:22:14. > :22:16.ethical traders. One is the future of the pension and what's going to

:22:17. > :22:20.determine this and who takes responsibility for which bit of the

:22:21. > :22:25.pension, whether the Co-op Group does or the reinvested bank takes

:22:26. > :22:28.responsibility and the second is that the Co-op Bank will retain its

:22:29. > :22:32.ethical Trading Standards which is one thing that people were looking

:22:33. > :22:40.at. It is a good news story. It should be. If they hadn't sold it

:22:41. > :22:45.the Bank of England made it clear that they would run Co-op Bank down.

:22:46. > :22:48.It lives to fight another day. Another story making the papers is

:22:49. > :22:54.the forecast of an announcement that the EU will take action against

:22:55. > :22:58.Google and issue a big fine. Will that add to transatlantic tensions.

:22:59. > :23:02.It is expected on Wednesday morning and Google will be fined they think

:23:03. > :23:05.about 1 billion euros. There has been a long running investigation

:23:06. > :23:09.and it is not a surprise and it is about how Google uses its search

:23:10. > :23:13.engine to promote its own shopping comparison site. You go online and

:23:14. > :23:16.look for something to buy and you get the Google price comparison

:23:17. > :23:23.service up first. Why do you say it's what a modern trade war looks

:23:24. > :23:26.like? Because the trade wars used to be finding each others

:23:27. > :23:30.manufacturers, now it is about competition law and the restraint of

:23:31. > :23:38.internet trade which in the past has been very, very difficult to get a

:23:39. > :23:44.hold of. It is a re-run. These two sides have a lot of history when

:23:45. > :23:49.Microsoft bundled Internet Explorer. About what the fight with Apple?

:23:50. > :23:52.That's a tax fight. This is about competition law. There are three on

:23:53. > :23:58.going investigations into Google, not just this one. This is a non

:23:59. > :24:03.tariff barrier. The Americans say this is Europe finding non tariff

:24:04. > :24:06.ways to restrict. It is sour grapes because Europe doesn't have Silicon

:24:07. > :24:14.Valley. Let's move on to another story. This is about the Fairtrade

:24:15. > :24:18.mark. It could be under threat? Supermarkets are saying we don't

:24:19. > :24:22.want to use the Fairtrade standards which are is the for all

:24:23. > :24:25.supermarkets by a group of non Government organisations and the

:24:26. > :24:31.supermarkets, we will use our own ones and use your own

:24:32. > :24:34.Fairtrade-style brands and Sainsbury's and Tesco's are looking

:24:35. > :24:39.at this. The supermarket price war in the UK is ferocious and they are

:24:40. > :24:43.looking to use the Fairtrade halo, but set their own standards. Fairly

:24:44. > :24:48.traded is a bit close to their trade. That could mean anything.

:24:49. > :24:52.What is fairly traded? What will it mean for the producers who are

:24:53. > :24:56.reliant on this brand? The producers don't like the idea because the

:24:57. > :25:00.Fairtrade system sets minimum prices and minimum standards of welfare for

:25:01. > :25:05.workers. It is good for the farmers. We don't know what the new standards

:25:06. > :25:09.will actually provide for them. Dominic, one last thing, Holland and

:25:10. > :25:17.Barrett was being taken over. An unlikely buyer. A Russian is an og

:25:18. > :25:22.ig arc and businessman and he has bought a bunch of interesting

:25:23. > :25:28.assets. He sold TMK for a lot of money and reinvested it. Now they

:25:29. > :25:32.see health food is the way forward. They've expanded massively. Thank

:25:33. > :25:35.you very much, Dominic for talking us through those stories. That's

:25:36. > :25:44.great. There will be more business news

:25:45. > :25:46.throughout the day on the BBC News Channel and on World Business

:25:47. > :25:56.Report. Thank you for joining us. See you soon.

:25:57. > :25:57.Hello, the heat and sunshine of last week will seem like a distant