27/06/2017 BBC Business Live


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China's Premier hails the opportunties of economic


globalisation but warns against the dangers of unfair growth


Live from London, that's our top story on Tuesday the 27th of June.


China's premier says the country will meet its full-year target.


We will take a look at how things may look on Wall Street later. And


the challenge of keeping your kids entertained - we will talk to a


businesswoman who has crowd funded efforts to make a backpack with


Wi-Fi and GPS. Hole in the wall, cashpoint or ATM - whatever you call


it, it is celebrating its 50th birthday. Our eights days numbered?


-- but are its days numbered? A very warm welcome to Business


Life. If china's Premier warned the World Economic Forum that fairness


is essential or else people will feel left behind. After the USA,


China is the world's second largest economy, with a value of the $11


trillion. It accounts for almost 15% of what the world produces each


year, but it is home to 19% of the world's population, almost one in


five and with the number of people increasing, so too are its cities,


in size and number. A brand-new eco-city Xiongan will house 2.5


million people. It is home to several unicorns, that is companies


worth over $1 billion. Some of the best-known names with global


ambitions are start-up businesses worth over $10 billion.


Let's cross to our Asia Business Correspondent Karishma Vaswani,


The Chinese premier has been speaking in the last couple of hours


- tell us what he said about china's economy. The big focus for China at


the World Economic Forum, the break face of China to the world, appears


to be achieving the country's stated growth targets. The Premier said


that China can contain any of the risks that have been so well


publicised about its economy. It can achieve those growth targets. I am


talking about the massive amounts of public and private debt that China


has, worth more than 250% of GDP, figures that are very scary for most


developed economies, let alone China, which is still in the midst


of a big transition. Speaking at the World Economic Forum, the premier


dismissed those concerns and said that china's economy remained steady


and had seen improving momentum as it moved to a more domestic focused


policy. The Premier said that growth forecast is realistic, but he did


point to the difficulties ahead in ensuring that everybody is included


in this rapid pace of growth. Let's listen to what he had to say.


TRANSLATION: Globalisation is changing our world with


unprecedented speed and depth, which has provided limitless opportunities


for all economies. However, if inadequate measures are taken, it


might create a problem of lack of inclusive growth. In other words, it


will create a problem of fairness. For example, some people will


benefit more than other groups, and traditional industries and jobs may


feel the impact. There seems to be a big focus on tech, and it is a


long-standing ambition for China to be a world leader in that field.


Indeed, and many other big names from Asia that have become household


names that us, this has become a really important part of the


remarkable transformation in China. Let's not forget that over the last


30 years, China basically turned into the factory of the world,


lifted incomes and living standards for people across the country, and


made goods much cheaper than the rest of us. It is trying to do the


same thing when it comes to technology, and I think that


ambition will be played out in the coming decades. What would the


Chinese premier be satisfied with at the end of this World Economic


Forum? I think for many of them are murderers about china going forward,


the fact that a lot of analysis has gone into the idea that there is


going to be a hard landing. What China really cares about is the


social contract it has with its people. We have had this massive


economic transformation of the last 30 years, but that has lifted living


standards for people at home. For this to continue, you really need to


see inclusive growth, not this huge gap between rich and poor that every


day appears to be getting wider range China, which is why there is


been this onus on cracking down on corruption. -- there has been. It is


a big year for the Premier and there is a big party congress at the end


of the year, so he has to show that the economy is running well and that


people at home are satisfied, so I think that will be a key thing to


come out of this forum. Thank you very much for that analysis.


Let's take a look at some of the other stories making the news.


Western Digital has told the BBC that they have


resubmitted their bid for Toshiba's NAND Flash Memory unit.


The offer is understood to be in region of $18bn which is the same


as the one from a consortium backed by the Japanese government,


which Toshiba last week announced as its preferred option.


Toshiba is under pressure to raise money following the huge


losses it has incurred from its US nuclear unit.


The US firm that supplied cladding used on London's Grenfell Tower says


it has ended global sales of the product for use


Arconic's shares closed down almost 6% in New York on Monday.


The company said it was discontinuing sales of Reynobond PE


for tower blocks due to "issues" identified by the fire


which is believed to have killed at least 79 people.


The Japanese computer gaming giant Nintendo has


This time it's set to bring the Super Nintendo Entertainment


The original was launched in 1990 and sold 50m units worldwide.


Some analysts have suggested it's part of its marketing drive


to increase sales of its latest console, the Ninetendo Switch.


Nissan says it paid its Chief Executive Carlos Ghosn around


$10 million in the year ended March, up 2.5 percent from


Mr Ghosn, who's one of the best-paid auto executives, received a separate


salary of $7.89 million last year as the head of Renault, Nissan's


He stepped down as Nissan chief Executive at the end of March,


but remains chairman of the Japanese company.


Let's look at how the markets are doing.


Japanese stocks edged towards two-year highs on Tuesday.


Exporters benefited from a strong dollar, shares in Toyota,


The dollar has risen in value as investors


are expecting comments from Federal Reserve Chair Janet


Yellen to support the Fed's projection for one more interest


A softer open on the European markets.


There's a general sense of caution in financial markets,


according to analysts, noting that commodities like crude


oil, which is suffering from a glut, remained shaky though,


that said, it has stabilised, and the recent selloff has stalled.


A slight lack of direction on Wall Street at the end of Monday


trading, the S and Dow closed fairly flat.


Federal Reserve chair Janet Yellen is in London talking


Traders will be tuning in to see in America's top Central Banker has


anything to add on the Fed's decision earlier this month to raise


interest rates for the third time since December.


Now, her message is likely to emphasise that while the economy


may not be overheating, the recovery in the US is strong


enough for it to consider another rate hike this year.


But will in-coming economic data reinforce that argument.


Two pieces to watch this Tuesday is the case Shiller house price


index as well as a report on consumer confidence.


Meanwwhile Uber's search for a new CEO continues


after the resignation of the founder Travis Kalanick last week.


Among those reportedly in the running are former Yahoo CEO


Marissa Mayer and Facebook's CEO, Cheryl Sandberg and the former Chief


Joining us is Jane Foley, Senior Currency Strategist, Rabobank.


You are doing markets with us, but I will mention a market related story


that is now live -- that is on our live page. There was a dip in the


gold price of 1.5% yesterday - tell us why and explain what fat fingered


trade means. It means that the market has aggressively given as a


price move. What happens is, there are various orders in the system


that immediately get filled and the price moves back very aggressively.


We call it a fat finger, which probably means somebody made a


mistake. Literally, their finger is too fat and they have gone to press


wonky and hit another one. It could have been that, or an extra zero,


perhaps. Somebody somewhere is probably pretty embarrassed. When


you do that... Sorry, but when you do that, I can imagine the horror if


you had done that. Is there anyway to pull it back? It is likely


someone is out of money somewhere. The system has a lot of trade stored


up, so as soon as a certain price is hit, they get filled. Someone is


very sadly probably out of pocket. You would think the system would


detect unusual activity and flag it up before it is too late. The


systems do have various safety nets all over the place, but you do


sometimes see the sort of movement. We saw it with sterling not so long


ago, with the gold market seven or eight years ago. It still happens.


Today, we will hear from two big important people, the head of the


Federal Reserve and the governor of the Bank of England. What we expect


to hear? The Federal Reserve have been saying that they will raise


interest rates this year, and three times next year, and they will start


addressing their massive balance sheet which is a result of


quantitative easing, by the end of this year. But the market is not


convinced because the economic data in the US has been mixed,


particularly in relation to inflation. The market expectation is


that inflation will decline. This is why the market is not convinced, but


the head of the Federal Reserve has insisted that inflation will rise as


unemployment comes down. We will see. Thank you for the analysis.


Would you buy your kids a backpack with wi-fi and GPS?


We'll be talking to one businesswoman who is trying


You're with Business Live from BBC News.


50 years ago today, the world's first cash machine was installed


outside a branch of Barclays in Enfield, London.


Now there are 70,000 in the UK, and three million worldwide.


The traditional 'hole in the wall' has come a long


way in half a century, as Simon Gompertz reports.


The first money from a hole in the wall.


You put in a voucher and a code and you got ten ?1 notes.


Reg Varney, a TV celebrity of the time, had a go


Less a cash machine than a mini bank.


On these ones, you can even open a bank account.


Signing your name, it will take my photo as well just


This one shows you if someone's looking over your shoulder


to steal your pin code, reassurance you might want


if they close your branch to replace it with a machine.


We're moving towards and no bank branch era.


We used to have about 20,000 bank branches in the UK


Smart ATMs, as we're calling them, in the future will provide 99%


of all the services that people can get from bank branches today.


That is not a world everyone will welcome but the technology


unleashed back in the '60s is still transforming the way


This is a little quiz for you Ben. What do you think is 20% more


expensive now than it was this time last year? Everything. That's how it


feels. A grocery item. A grocery item. You might spread it on your


toast. But ir. Very good! Butter is almost 20% more expensive than last


year. Overall grocery inflation running at 3.2%. That's a lot to do


with the fall in sterling, the general inflation that we're seeing


and there is a picture of Lidl, the UK's fastest growing supermarket


chain, sales growing there 18%. We are talking about the Western


Digital bid for Toshiba, the chip business, there is more on that.


It's all there, whenever you'd like to have a look.


Or you can look at it via the app. Our top story, China's Premier Li


Keqiang has been hailing the benefits of economic


globalisation, saying it brings But he also warned the World


Economic Forum in the north-east Chinese city of Dalian that fairness


is essential or else people A quick look at how


markets are faring. Slightly softer start to the


beginning of the trading day across the main European indexes.


And now let's get the inside track on a subject that will be music


to every parent's ear - that is, being able to keep


Well, our next company does just that with their range of unique


Founded in 2009 by two working mums Gill Hayward and Kellie Forbes,


They sell backpacks which transform into a portable entertainment system


with a foldable desk. The bags are sold over the world.


The company is now crowdfunding a new tech enabled bag


With me is Gill Hayward, co-founder and director of YUU,


a company that designs and produces a range of unique activity


We have seen briefly images of the bag. We've got one here. This is the


tech bag. It is, indeed. Quickly, it unzips. This comes down like a desk.


There is lots of pockets. Lots of places for them to put their secret


things and it's easy for the kids to carry. It's lightweight. You started


off with a bag that wasn't tech enabled. You're crowdfunding for one


that is. Explain to us how the crowdfunding process works? As a


small business there are two challenges, resource and raising


finance to bring the products to market. We have decided to reach out


it our customers and supporters and help them crowdfund our new product.


There is equity which we're not in this game or there is product raised


crowdfunding. We are trying to bring the product to market with the help


of people who pre-order in return for large discounts. They will buy


the bag at a cheaper price and get it in nine months? Less than that.


Because we're a children's product, Christmas is everything to us. We're


crowdfunding now so we can deliver the product to market in time for


November and December so Santa can deliver. Isn't the challenge trying


to get kids away from tablets and smartphones. Surely that's what they


want to be playing with and that's what you see a lot of parents using


to keep them entertained? It is important that children can balance


tech play and active play. When we designed the original range of


products it was about did z kids being able to get out and about and


do all the things they want to do with the entertainment on their


back. We have snakes and ladders, pencils, pence and drawing and the


kids love that as much, but they will spend time on screens. And we


recognise that it's important now that the children can engage in tech


in a more positive way. One of the reasons we created the GPs tracker


bag was that children could track through as an add haven't turer and


see where they have gone and count their steps and journeys and for


parents it's about being able to track where the bag and the child.


It's peace of mind. I can see the progression from the backpack that


you created, you went on dragon's Den and you got funding and you


thought how do we move on? A lot of stuff about tablets and wi-fi. This


security element, the fact that parents can track their children, is


that something that you have had mixed reviews on? I can imagine some


parents would like that. Other people might be very against that. I


think, you know, in this day and age most devices that people have, there


is a tracking facility on it, you know, parents, most parents or


carers have had that moment when a child has been late become from


school and you felt very nervous so to be able to go o check the child's


location or to check if a child has come in or out of a preset area or


zone, the parents can do that on their app. Never lose the bag! Never


lose the bag! Now, you have been running the business now for six or


seven years, what would I say is the biggest challenge that you have


faced? In the early days, it was actually managing demand. When we


launched we sold our first products within minutes and we sold out our


first container within weeks. In the early stages that challenge was


being able to manage how do we get the production and meet the demand.


Recently, it is in terms of fund-raising new product launches


and grow the business if the way we want to and gain the finance and the


working capital to be able to do that. You have launched your


crowdfunding. You launched three weeks and you're almost half-way to


what you need. Good luck with. Thank you very much for your time.


In a moment, we'll take a look through the business pages,


but first here's a quick reminder of how to get in touch with us.


The Business Live page is where you can stay


ahead of all the day's breaking business news.


We'll keep you up-to-date with all the latest details,


with insight and analysis from the BBC's team of editors


Get involved on the BBC business live web page, bbc.com/business.


On Twitter @BBCBusiness and you can find us on Facebook


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


Let's see what other business stories the media have been taking


an interest in. Dominic O'Connell is on set. We are going to talk about


the Grenfell Tower cladding. The company that makes the product have


suffered a fall in share price. It was one of the companies that was


spun off it. It made the panelling Rimer Bond for 20 or 30 years.


Yesterday it said it stopped selling their product for any high rise


buildings. They said they were going to stop selling it because of


disparities between different countries fire recognise lations


which gives the view that they don't really take responsibility for how


the product is used. They will sell it, but it is up to the locals to


decide whether it complies with their fire regulations, but


investors think it maybe in the firing line from the Grenfell Tower


investigation. And in terms of the company's future... Well, it's a big


company. It's a big company. One of the things we have learnt over the


years from disasters is from victims, lawyers will always chase


the money. The other companies involved in the Grenfell Tower


refurbishment are small. Arconic is very big. If the investigation shows


any failings in the cladding, they will probably go after the


manufacturer. We want to talk about big anniversary. 50 years of the


hole in the wall cash machines... 196 in Enfield. Who was the


celebrity they had on hand to launch the first cash machine? I don't


know. Reg Varny from On The Buses. I don't know. He is like a Russell


Brand. It brings out the whole question of do we still like using


cash? Do we prefer to do cash or contactless? There will be more cash


machines because the number of bank branches are going down and super


whizzy cash machines will do everything. I suspect with payment


apps we will see fewer cash machines, not more and more. We have


had lots of tweets on this. Dave says, "Always like to have some cash


on me." He worries that cashless society would see the end of


busking. Chris says paper money is needed. Lawrence prefers cashless


wherever possible. Adrian says, "I always get caught out if I don't


have cash on me." I dashed into the corner shop and I was told ?1.50 if


I wanted to get cash. This is a good story in the FT


showing how recession can lead to innovation. If you'd gone to Sao


Paolo the traffic was so bad. In the wake of corruption allegations which


brought one Government down and might bring another Government down,


business activity has slowed down. Business in Brazil went backwards.


Now the helipads are being used for exercise classes and parties.


Finding another use for the toys of the rich and famous. Do you fancy


yoga on top of a high rise building. No, not if you fell off the edge.


No, thank you. That's it from us today. There will be more business


news throughout the day on the BBC web page. We will have more business


news for you tomorrow. Bye-bye. Hello there. Good morning. We have a


rather unsettled week ahead. Lots of rainfall in the forecast and today,


rainfall already across the northern half of the


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