26/06/2017 BBC Business Live

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

Japan's auto supplier Takata has had to recall more than 100 million

They've been linked to more than a dozen deaths globally.

And forging closer business ties between the world's biggest

and the world's fastest growing economies as the US

president welcomes India's Narendra Modi to Washington.

And we'll be getting the inside track on waste busting.

It's an unglamorous job, but cleaning up industry's

The fair trade system could be under threat.

Let us know, do you buy fair trade goods to do good or really

The Japanese company behind the biggest recall in car-making

Takata's airbags were first found to be faulty in 2004.

They were used by 13 of the world's biggest car makers who have

all agreed to bankruptcy proceedings in courts in both Tokyo and the US.

This CEO Takata said this morning he would step down.

Worldwide more than 100 million Takata airbags,

which can rupture with deadly force and spray shrapnel at passengers,

The faulty airbags have been linked to at least 17 deaths and more

$9 billion is the estimated cost according

The firm Key Safety Systems has now bought all of Takata's assets

except those relating to the faulty airbags for almost $1.6 billion.

We have been following the story from our Asia business hub in

Singapore. There was a press conference today. What did Takata

have to say? The CEO has come under criticism for how he has handled

this scandal. Indeed. He is the grandson of the company's founders.

As you mentioned, the first accident causing an injury happened in 2004,

and the company has been accused of covering that up and not doing

anything about it. It took them in fact a decade before the New York

Times reported on it, and then the company finally admitted full

responsibility. He has been criticised repeatedly for

mishandling the crisis. He promised that he would step down once the new

management takes over. I think the big question among drivers who might

be concerned that their cars and airbags might be affected is whether

they can continue to get the replacement and Takata has said that

despite the bankruptcy findings, customers can continue getting free

replacements. Takata is not just any old firm, is it? Can you give me the

impact this bankruptcy has on the corporate scene, the reputation of

people in Japan? The company is 84 years old and it has been around for

a long time. It was once known as one of the really good quality

Japanese product companies. Other than those airbags, they also make

seat belts and child seats, for example. That is why this American

company has decided to buy all the assets not related to airbags.

Because of the alleged cover-up and because of the way this scandal

continued, if you remember they still don't know what caused the

airbags to practically blow up, so that has really damaged the

company's reputation as well as the reputation of corporate Japan, in a

way. Thank you very much for that update. We can now take a look at

other stories making the news. Italy's government is bailing out

two banks in the Venice region. The move comes two days

after the European Central Bank warned that Banca Popolare di

Vicenza and Veneto Banca Italy's Prime Minister says

the rescue was needed to protect savers and ensure the good health

of the country's banking system. The UK's biggest health food

retailer Holland Barrett is being bought by a Russian

billionaire for about $2.3 billion. The chain is being bought

by L1 Retail which is controlled Holland Barrett also has stores

across Europe and in emerging markets including the Middle East,

China and India. There's been another successful

launch for Space X in its efforts to perfect the technology behind

reusable space rockets. This time it launched 10

communication satellites from California before the rocket

landed on a platform at sea. The company's chief executive

Elon Musk tweeted that its new titanium grid fins worked even

better than expected. Do you know what a detainee in grid

Finn is? No! I have been trying to work it out and I have not been

successful. Reusable rockets. What else is happening on the BBC

Business Live page? It is a look back in history. 20 years today

since the publication of Harry Potter And The Philosopher's Stone.

$7.7 billion has been made out of the books. We have two pictures of

trains now. We are very excited. And Hornby say they have not been

offered enough. They both look very similar. The Hogwarts picture there,

the Hogwarts Express, and the Hornby train. And I think you can get a

Hornby train that looks like the Hogwarts strain. That is a boy's

thing. Let's move on because we want to check out what has been happening

in the financial markets. Lots of stories making an impact today,

particularly this one. Three Australian employees

of Crown Resorts have been jailed in China

for illegally promoting gambling. What has happened. The Chinese

courts are nothing if not efficient. This trial began in the morning and

was over by lunchtime. The head of international VIP high roller

operations for Crown Resorts received a ten month sentence. Two

other executives received nine-month sentences. They and 16 other staff

pleaded guilty to the promotion of gambling in China. Presumably they

thought they were operating in a sort of grey area here but it is

illegal in mainland China. The authorities didn't see the

operations as OK and they picked them all up in October last year. If

there is a silver lining for this Australian casino operation, it is

that the sentencing according to Australia's Consul general in

Shanghai, started from the time they were detained. I guess they only

have a few more months to go. Certainly their reputation will be

tarnished and they will not be looking like they have been,

certainly not promoting to Chinese high rollers. They are trying to

drag these into Australian casinos and they will have to find a

different way to do it from the way they have been. Thank you.

Shares in Asia have edged up with the Nikkei ending in positive

Trading generally has been slow though as some markets

across the world are closed today to celebrate the end of Ramadan.

Oil prices rose more than 1 percent on a weaker dollar,

but another rise in US drilling activity added worries

will persist despite an OPEC-led effort to curb output.

That is shale gas drilling of course.

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

Kicking off the week in a world of business, India's Prime Minister

Narendra Modi will be in Washington on a two day visit. While there, he

will be meeting with President Donald Trump, which will be the

first face-to-face meeting for the two leaders. Trade, business and

immigration will likely be on the agenda. Jury selection for the fraud

trial begins this week. The accused is best known for increasing the

price of a drug from $13.50 per tablet to $750. He is accused of

securities and wire fraud stemming from two hedge fund that he founded

and ran. He denies the charges. And finally a three-day auction takes

place in Hollywood. Some of the items up for sale, the costume that

Leonardo DiCaprio war on the film Titanic and the light sabre used by

Luke Skywalker in the Star Wars films. That is happening on Wall

Street later. We can focus on Europe now.

Joining us is James Hughes, chief market analyst at GKFX.

Let's talk about the Italian banks being bailed out again. Will this

stop the rot or is there more to come? I don't think it will stop the

rot. What we have seen here was inevitable. We did kind of know

about this situation. I thought they would get by without any bail-out.

Banca Popolare is one of those that has been struggling for a long time

and the Italian economy has not been performing very well. If the economy

doesn't do well, it tends to filter down to the banks. The question is

does it solve any problems? The problem with the whole eurozone, if

you look at Greece, are just kicking the can down the road? With Greece

we were. We bailed out banks and the entire country. In Italy we have

seen a similar thing in terms of bailing out the banks. The lines

coming from the government are that this helps savers and it protects

the financial system. But we don't necessarily believe that it does. We

have a banking stress test in Europe. We know that a lot of them

are pretty much PR jobs. Stress tests are all about building up a

financial buffer for a crisis ahead. Have the banks really done that to

that extent? If that was the case, these two banks would not need cash

to be bailed out with. In the UK, some of the capital reserves is

pretty considerable now in the big banks. It is impressive. And the US

banks and the UK banks, they both have a lot of money. But if you live

at the eurozone as a whole, we say it is getting better and the economy

is getting better. But when we look at the eurozone as a whole, we see

Germany getting better and the German economy is incredibly strong.

What about Spain? Spain is doing pretty well. Much better from an

incredibly low point. And France. It is not totally Germany, is it? Not

totally but if you look at the finance minister of Germany, he is

constantly asking the ECB to remove the stimulus that is helping them,

because there are fears that the German economy will overheat. There

is that imbalance, divergences across the board, and there is a

fear of picking a problem down the road across the eurozone which we

have been doing for ten years. Thank you.

Cleaning up after industry and its mistakes.

We're talking to the boss of a firm that makes

sure the legacy of business is not pollution.

You're with Business Live from BBC News.

The UK could be set for years of weak and anaemic economic growth.

That's the warning from trade body the British Chambers of Commerce.

They predict growth of just 1.5% by 2020 whilst inflation

could remain high and peak at 3.4% this year.

It says the inconclusive election result has made businesses wary.

Suren Thiru is the head of economics at the BCC and he joins us now.

Why exactly? Why do you think growth will tail off because it has been

pretty good up until now? What we expected the next few years is a

period of more subdued growth, as you say. There is a number of

reasons for that. Inflation will be key for the UK economy, hurting

consumers and businesses alike. It will impact on consumer spending

which is a key of UK growth. What we will also see our long-term

structural issues affecting the UK economy. The consumer spending

tribal hurt our economy and investment has been fairly weak

given the political uncertainty. And with Brexit over the long-term. But

there have been a lot of these forecasts before in the past.

Particularly forecasts about what will happen immediately post-Brexit

vote and they have not materialised to the extent that was forecast. We

saw growth slowing in the first quarter of this year 20.2%. -- down

to 0.2%. That could be a sign. Investment and inflation --

inflation is a challenge. It affects businesses because of the cost of

raw materials. And it affects wage growth as well. That will impact on

the growth and spend. There is some good news in there. 2017 will be

good for exporters. The weaker sterling is making some businesses

more competitive abroad. We also seeing an improved global economic

outlook. Stronger figures from the eurozone and other key markets,

which will help to boost UK export growth the coming year. That is

good. Thank you very much. Head of economic is at the British Chambers

of Commerce. The Co-op Bank is no longer for

sale. This has been tweeted by Dominic O'Donnell our business

correspondent. We will be talking to him about it later.

You're watching Business Live. Our top story:

The Japanese airbag and car parts manufacturer has filed for

bankruptcy. A quick look at how

markets are faring. Europe's major stock indices

have advanced on opening following a similar path to stocks

in Asia which edged up earlier. Oil prices have also risen,

but another spike in US drilling activity stoked worries that

a global supply glut will persist. Now let's get the inside track

on a subject we don't touch on much, but matters a lot

- water treatment. Many industrial projects

cause pollution. Often it's after an accident

such as an oil leak. Our next company does just that -

from mopping up oil in the Med to keeping 2022

Qatar World Cup projects clean. Dr Richard Coulton founded

Siltbuster in 2003. It's a relatively small firm,

employing 55 staff, based in Wales, While the UK is a key market,

it also exports to 32 countries. With some high-profile jobs

including the UK's Olympic Park, clearing up spilt oil

in the Mediterranean Sea when the stricken Costa Concordia

was raised and keeping pollution Well, of course, I'm pleased to say

in our latest of the CEO secret theories, the boss is here. Good

morning. Tell us how the business began. Business began around about

2000 when I was involved in treating some contaminated water from mine

water discharges and a colleague asked if I could do the same for the

construction industry and I realised that construction companies want

equipment to hire and not buy,. So you're a hire shop really? We have

got a lot of engineers and equipment. Probably over 300 pieces

of equipment. What we do is put together short-term treatment

solutions. It is like Lego bricks for water treatment. Today we might

have a red and a green, and tomorrow, it might be a yellow and

purple. So we provide the know how and the equipment to the companies

to solve their problem. Talking about the Costa Concordia disaster.

Yes. How did you minimise pollution there? Halfs the pollution. They had

to drill 30 big holes into the rock and in doing that, they grind the

rock up and that causes a lot of pollution, very fine rock particles

which can blocks the gills of fish and smother the sea bed and kill off

aquatic life. Part of our role was to take that water from the drilling

operation and remove the fine rock particles so that the water could be

put in the sea. Where was the equipment? On a barge. Where do you

put the mess? The mess was actually dewatered and taken away to a

landfill. As rock powder. How quickly can you set-up the business?

And move the water treatment plants? A matter of days really. We did a

large food factory. We got to site within three days and that was for

Europe's largest food factory. What you are doing, everybody, it is one

company's bad news is your good news. In a way, you are an ambulance

chaser, that's a very rude way of saying it, but you are chasing after

problems. What I want to point out, because you're doing that, surely

you can charge what you like because these people are panicking? We're

not that clever! We basically charged fixed rates for whether it

is a short-term or long-term hire. Aren't you tempted when someone has

a disaster and they may get prosecute? The temptation but people

know what market price is and to keep life simple we have a fixed

flat rate. The sales guys can go to an inquiry and they know what we're

going to charge and they can come away with positive feedback. Do you

rely on companies polluting for your business to expand? We rely on

preventing companies from polluting polluting. As the recent legislation

and court cases show that companies are now more aware of their

environmental responsibility and as such, are relying more on us to help

them when they have got a short-term problem. Thank you very much indeed

for coming in. Now for the latest in our CEO

Secrets series where business Whitney Wolfe launched dating

app Bumble to put women Yes, on Bumble, only women can

initiate conversations. She's also a co-founder of

the better known dating app Tinder. So what advice does she wish

was given when she started up? The one piece of advice I wish I had

when I started out would be to not Never neglect the things

that matter most in life which is your friends,

your family, your health. I think work is amazing and finding

success is very rewarding, but there's no reward in the end

if you neglected the things So it's incredibly important,

regardless of how tired or busy or overloaded

you are in your day-to-day, you must take time to call your grandparents

or call an old friend or take an afternoon off to spend time

with your parents if you're so lucky to have these people

around you still. Remember to stay grounded

and to remain humble and grateful. Without those values,

you have nothing in the end. We were looking at your tweet

earlier about the Co-op Bank. That's good news today. The Co-op Bank has

been in trouble since the financial crisis. The Co-op itself got into

trouble in 2008, 2009. It put itself for sale, but now the sale has been

called off because it is in talks about its existing investors. It is

amusing the Co-op has been saved by what people think might not be

ethical traders. One is the future of the pension and what's going to

determine this and who takes responsibility for which bit of the

pension, whether the Co-op Group does or the reinvested bank takes

responsibility and the second is that the Co-op Bank will retain its

ethical Trading Standards which is one thing that people were looking

at. It is a good news story. It should be. If they hadn't sold it

the Bank of England made it clear that they would run Co-op Bank down.

It lives to fight another day. Another story making the papers is

the forecast of an announcement that the EU will take action against

Google and issue a big fine. Will that add to transatlantic tensions.

It is expected on Wednesday morning and Google will be fined they think

about 1 billion euros. There has been a long running investigation

and it is not a surprise and it is about how Google uses its search

engine to promote its own shopping comparison site. You go online and

look for something to buy and you get the Google price comparison

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

like? Because the trade wars used to be finding each others

manufacturers, now it is about competition law and the restraint of

internet trade which in the past has been very, very difficult to get a

hold of. It is a re-run. These two sides have a lot of history when

Microsoft bundled Internet Explorer. About what the fight with Apple?

That's a tax fight. This is about competition law. There are three on

going investigations into Google, not just this one. This is a non

tariff barrier. The Americans say this is Europe finding non tariff

ways to restrict. It is sour grapes because Europe doesn't have Silicon

Valley. Let's move on to another story. This is about the Fairtrade

mark. It could be under threat? Supermarkets are saying we don't

want to use the Fairtrade standards which are is the for all

supermarkets by a group of non Government organisations and the

supermarkets, we will use our own ones and use your own

Fairtrade-style brands and Sainsbury's and Tesco's are looking

at this. The supermarket price war in the UK is ferocious and they are

looking to use the Fairtrade halo, but set their own standards. Fairly

traded is a bit close to their trade. That could mean anything.

What is fairly traded? What will it mean for the producers who are

reliant on this brand? The producers don't like the idea because the

Fairtrade system sets minimum prices and minimum standards of welfare for

workers. It is good for the farmers. We don't know what the new standards

will actually provide for them. Dominic, one last thing, Holland and

Barrett was being taken over. An unlikely buyer. A Russian is an og

ig arc and businessman and he has bought a bunch of interesting

assets. He sold TMK for a lot of money and reinvested it. Now they

see health food is the way forward. They've expanded massively. Thank

you very much, Dominic for talking us through those stories. That's

great. There will be more business news

throughout the day on the BBC News Channel and on World Business

Report. Thank you for joining us. See you soon.

Hello, the heat and sunshine of last week will seem like a distant