06/07/2017 BBC Business Live


Similar Content

Browse content similar to 06/07/2017. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News with Alice Baxter and Ben Bland.


that's the message from the EU and Japan as they close


Live from London, that's our top story on Thursday 6th July.


The deal's on - Japan and the EU will today sign a free trade deal


Could this be the beginning of a new economic power couple?


Also in the programme, slicing off a thinner profit -


the owner of Pizza Hut, KFC, and Taco Bell in China


posts lacklustre results in the first quarter.


And we have the latest from the markets and European


have opened steady after a fairly downbeat session in Asia.


And we'll be getting the inside track on Alipay,


the Chinese digital payment giant owned by ecommerce giant Alibaba.


And as Jay-Z's digital-only album goes platinum in under


a week we want to know, what was the last physical


In a few hours' time, the EU and Japan will sign off on a major


trade deal in Brussels - covering everything


It comes despite doubts around the world about free trade deals


and the rise of trade protectionism in the US under the


Japan and the EU account for about a third of global GDP -


Both sides believe their trade relationship has room


EU officials say the deal will boost the EU economy by 0.8% and Japan's


Among the big winners, the car industry.


The EU will scrap a 10% duty on Japanese car imports,


while Japan will remove barriers to entry for European automakers.


The deal's also very symbolic, partly because of Brexit -


European leaders want to reinforce the value of the EU


Meanwhile, Prime Minister Shinzo Abe of Japan has been looking for a big


win on the global stage after President Trump


effectively torpedoed the Trans Pacific Partnership


Marina Petroleka is head of industry research at BMI Research,


So we were hearing some of the numbers involved. Given that the


trade between the EU and Japan already accounts for so much, the


question is, why have they not done a free-trade deal like this before?


All these free trade deals are very comprehensive. They have had 18


rounds of negotiations just to get to the point of today worry have


high-level political endorsement of the deal. So they do take a long


time. We have just talked about or toes and agriculture, but there is a


plethora of smaller issues and industries, data protection,


everything, the entire spectrum that has to be negotiated. It has taken


years to get here. Your take on it is one of the big winners will be


the pharmaceutical industry? In our view, a lot of the coverage of this


has focused on agriculture and autos because they were the two bargaining


chips. But if you look at the numbers, the European pharma


industry will be a major winner because it will open to them the


Japanese pharmaceutical markets, where you have a major population


with a high income. European pharmaceutical markets love that


sort of profile for their big blockbuster drugs. So we anticipate


there will be a big increase of the European pharmaceutical industry in


Japan as a result. Is this a deal that benefits both sides equally?


Presumably yes. After 18 rounds of talks, you would think you have a


balanced mix. For the EU, the big win is pharma. In our opinion, it


will also be the agriculture sector. It is pretty much one-way trade of


EU exports to Japan. On the Japanese side, it is the car-makers that will


benefit by losing the 10% import tariff, as well as nontariff


barriers for auto parts and other parts of the supply chain. Thank


you. Let's take a look at some of


the other stories making the news... British Airways cabin crew


are to stage a further two weeks of strikes,


in a long running dispute standing staff, will walk out for 14


days on 19th July in a strike The strike will begin


three days after the end Rapper Jay-Z's digital-only


album 4:44 has gone platinum within five days -


despite limits on who The music was only available


on Tidal, the star's own streaming service,


and to customers of US The Recording Industry Association


of America platinum certification, which requires more than 1 million


sales, is rare for Last year, KFC and Pizza Hut's US


owners Yum Brands spun off the Chinese business


into a separate company. In the last few hours,


it's reported results Have the Chinese developed


a taste for pizza? No, the world's second-largest


economy prefers what Colonel Sanders has to offer over pizza. Yum Brands


had boosted sales which was driven up by 4% of the KFC chain. But Pizza


Hut sales were flat. Yum Brands has been looking to pump up sales in


China because of the market, which has started to slow since 2012. It


was hit by safety scares, changing consumer tastes and a wider economic


slowdown. The food franchise had hoped to heat up sales by


simplifying Pizza Hut's menu and making a push on mobile payment and


delivery. It seems that it recently bought a controlling stake in the


local food delivery service. The disappointing pizza numbers pushed


Yum's than a stock price is lower but so far this year, Yum's China


shares are up nearly 54%. Most Asian stock markets fell on Thursday after


minutes from the Federal Reserve's class meeting showed a lack of


consensus on the future pace of US interest rate increases. Oil prices


also inched higher following a steep decline yesterday. Tokyo stocks are


also falling, with banks leading the decline following the release of


those fed minutes. Also a stronger yen. Trading in Asia generally has


been buffeted this week by tensions on the Korean peninsula.


Markets elsewhere are waiting for the release of some US Jobs


for June, which due on Friday - in the hope that will provide some


So here in Europe, markets have opened steady.


And Michelle Fleury has the details about what's ahead


Trade figures are released this Thursday.


The latest numbers from the Commerce Department are likely


to show that America's trade deficit shrank slightly, to 46.2 billion


The billionaire investor picked by Donald Trump to run


the Commerce Department is, shall we say, obsessed


In the past, he's urged manufacturers, including


Japanese car-maker Toyota, to build more plants in the US


as part of efforts to reduce the US trade deficit


Toyota's new headquarters in Plano, Texas opened


The Japanese car-maker is also to invest $10 billion over


It's worth noting that's the same as the last five years.


And ahead of Friday's monthly jobs report,


data on private sector employment will be released.


Joining us is James Quinn, Group business editor


So, interesting moves on Tesla shares? Tesla shares have fallen 15%


since late June, when they hit those heights. Lots of commentary around


the market values of the brands Tesla was working with before. Volvo


are going all electric from 2019. As opposed to an internal engine. What


does this mean for the future of electric cars per se? It was just


the domain of Hazlitt for so long, and now there is lots of


competition. That's right, Elon Musk was a soothsayer in that respect,


investing a lot of money into the business. Tesla only delivered


76,000 cars last year. Volvo delivered over half a million cars.


So clearly, the big boys are getting involved in this and that takes the


sheen off Tesla's approach somewhat. Goldman are downgrading their price


on Tesla yesterday. That is meaningless given that Tesla's share


price last night was still $327. Looking at market around the world,


investors seem to be waiting for this data from the US on jobs which


are due out on Friday. But also those mixed messages from the Fed


about the pace of future rate rises and when they draw down the balance


sheet of the debts they hold? That's right, questions over tapering and


whether policy should get looser and interest rates will go up further


later in the year. Christine Lagarde, the boss of the


International Monetary Fund, one of the big financial organisations


around the world, warned yesterday ahead of the G20, which starts


today, that the Brits but we have seen will not continue to boost US


job figures, which were strong in the start of this year. Will they


continue, given that President Trump has something to crow about when all


else has been going badly? The US Labour market is still growing


strongly. Some would say that was faxed to President Obama and nothing


to do with President Trump's rain so far. Some might say! We will take


you through the papers later. We'll be getting the inside


track on the Chinese You're with Business


Live from BBC News. A lot of businesses are worried


about where the entrepreneurs Ben Thompson is with a group


of young people who might be able Welcome to the South Bank. We are


here in central London. 20,000 students have taken part in the


Young enterprise scheme, whittled down to just 14 finalists. I am with


some of them this morning. Dean, you have been through the whole process.


What is it you do? Our product is a simple but effective device. It


transforms any shoe into a slip on. How did you come up with this idea?


Our schoolteacher's son got trapped on an escalator. And what have you


learned from this? Running your own business is harder than it might


look. Definitely. My biggest lesson is the importance of customers.


Treat them with respect. If you do, they will return it to you. Good


luck. I know you have a presentation later. Then the winner will be


announced tonight. Ben, you are veteran of this process. You know


when own firm. What is the difference between the theory and


the reality of doing it here and in the real world? You can easily sit


around thinking you will sell millions of these, but the


practicality is knowing the things you have to do day in, day out. You


can look at the textbook, but it is about actually doing it. This adds


the experience of doing it. You will be the master of ceremonies later.


What are you looking for? We are looking for the spark. These guys


are very early days. They have started to make a profit. We are


looking for the companies that want to have an edge over people and look


at the longer term. It has struck me how many businesses involved


technology. It is really changing how businesses operate. Technology


is now a massive thing. Everybody here grew up with it. So now people


are trying to utilise it in their business. There are challenges with


security and data, but it is also exciting because the opportunities


are endless. Best of luck. So as you can see, I have been joined by some


of the finalists. A busy day ahead for them. It is only fair that I let


them have the last say. Good luck, guys. See you soon. Bye-bye.


You are watching business life. The European Union and Japan are gearing


up to announce a landmark free trade deal. The two regions have indicated


a commitment to open trade, in contrast to a protectionist measure


taken by President Trump. Let's bring you a quick recap on how the


markets are doing. In Europe, following a downbeat session over in


Asia, the European markets are also down. In London, it is flat.


And now let's get the inside track on online payments.


Alipay is the world's biggest third party on line


It was originally part of the Alibaba stable,


and allows third party payments for millions of Chinese consumers.


It's the most popular payment app in China -


and its trying to push out into the rest of the world


Joining us now is Rita Liu, Europe Middle East and Africa


Many thanks for joining us in the studio. Good morning. I was just


going to ask you about the genesis of Alipay. It is somewhat


controversial, it was spun off from Alibaba in 2014. At the time, there


was a big uproar from Yahoo, a major shareholder in Alibaba? Yes, that is


what happened. It was driven by the regulation requirement in China,


third-party payment providers. Just looking at where your focus is now,


we are talking about the expansion to new markets. You are still only


targeting Chinese consumers who are travelling abroad. Why not target


consumers from wherever they come from? Actually, I get that question


every day. At the moment, in this region of Europe, we are focusing on


the cross-border opportunities. You know, bringing 450 million users


from China to spend in Europe and help them have the same experience


they have in China when they are travelling in Europe. But we are


trying to expand our user base from China to the rest of the world. Now,


the focus is now more on Asia. As you know, we made several


investments into several countries in Asia last year. That is part of


our effort to expand our user base by empowering our partners in those


markets without technology and know-how, building in China and


hopefully growing another Alipay in that market. Given the expansion


hopes and ambitions you have, I'm interested to know what you make of


Donald Trump's approach, the more protectionist approach and some of


the Commons that he has made, particularly about China? Actually,


you know, the meeting with him several months ago, Alibaba


promising 1 million job opportunities in the US. We were


just in Detroit last week, promoting our services to the SMEs in the US,


helping them to engage better with rising costs in China. I think that


is our answer to that. We definitely try to... We definitely hope that


the cross-border trade in China and the US will prosper. You know, in


years to come? Do you feel that you need to explain your strategy to the


US consumer in any way? Well, it's always complicated to explain


Alipay. We do so many things in China. Again, our vision is to drive


financial inclusion by technology. The first stuff we are taking in


Europe is to service and merchants here. It is the best way to educate


the market for Alipay is really about. It is not just a payment


option, it is a login platform for the merchants. It takes time to


educate the market, but we are making efforts. One thing that


people who are watching, not just Alipay, but the parent company, they


will be wanting to know why the delay over the listing? It has been


talked about, much hyped, but it now seems to be pushed back to... We


don't know when? It was meant to be the biggest of 2017, wasn't it?


Well, I wish I knew more details. It is not our priority now. It is to


solve customer issues and expand to more markets. It is not our


priority. We are making lots of progress in various markets around


the world and that is our priority. It is not to do with needing


regulatory approval or approval from Beijing to take the next step? Not


that I know of. We will continue to watch with interest. It has been


much talked about and much hyped. I am sure we will be covering this


again in future. Thank you for coming in.


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 life pages where you can stay ahead with the business


news. We will keep you up-to-date with the latest details, with


insight and analysis from the team of editors right around the world.


We want to hear from you as well. Get involved on the BBC web page. On


Twitter, we are on BBC business and you can find us on Facebook.


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


look at some of the stories the papers have been looking at. We are


going to start with the China morning Post. They say that Richard


Branson's feeling is that he might cut his investment the UK if Brexit


goes ahead, which we assume it will, because he thinks the country is


harming itself and it doesn't make sense for him to put money into it?


That is what he said on a flight from Hong Kong to Melbourne, Virgin


Australia launching flights today. He was an ardent Remainer, you might


say that he would say that. What is interesting in the language he uses


is that in the last couple of days, business people have returned to


this debate ahead of the meeting tomorrow, where the Chancellor,


Philip Hammond, and other ministers will meet business leaders en masse


for the first time since last year's Brexit rope. There seems to be a


softening on the Government's stands, a willingness to discuss.


The question over whether or not he will cut investment seemed wide of


the mark. But these comments, from somebody that is a British


businessman, will attract a lot of criticism from some quarters. I'm


thinking the readers of your paper? That's right, the suggestion he will


cut services out of Heathrow, Virgin Atlantic, they have been increasing


services recently and launched flights to Seattle from Manchester,


to Chicago and other places. Clearly, the owner of Virgin Trains,


lots of investment in health care, I think it is talk for a foreign


audience. He made the comment on a flight from Hong Kong to Melbourne,


maybe he would not make those two others. Maybe he would.


Let's move to the next story. I want to ask you a couple of questions


that we posed to viewers this morning in light of the


record-setting sales set by Jay-Z for the release of his latest album.


We asked, what was the last physical record that they bought? I had a


number of responses, Felicity said Purple Rain from Prints. Carolyn


says Strips by Christina Aguilera. A reissue of Abbey Road. Another says


They Might Be Giants. Mark says it must be 20 years since I bought an


LP. Calling it an LP as well? Oh, dear. What was the last one you


bought? In terms of an actual record, I think there was only ever


one, when I was very young, Billy Jones's Uptown Girl. Then straight


onto tapes and then CD's. I can't even think. I'm too embarrassed to


admit! I would lose credibility. We have all moved on, as has


technology. That brings me nicely into the next story from the


Financial Times. Talking about drones. Zeroing in on increasing


numbers of commercial opportunities. Is there anywhere now that they are


not going? Everybody is trying to test the abilities of drones to see


how they can be used in business, commerce, to reduce the cost of


sales. Amazon is a great example of a company testing ground delivery.


In Cambridge, they have a license to see whether they could deliver


parcels. It wouldn't work in built up an urban areas, but in suburban


areas coming to back gardens, that could be one possibility. I think


the possibilities are endless. The practicalities are somewhat


different. Its safety, isn't it? These are fairly heavy things,


flying above peoples heads. There was a risk involved. That's right,


go pro launched a probe with a camera attached and it was falling


off, so they had to recall them. That is not something any company


wants to be involved in. Safety issues and also the impact with


aviation. You don't want to be a drone operator that crushes your


drone into a helicopter or plane. We are at risk of droning on. Not you!


That all we got time for. We will see you tomorrow. Thanks for




Download Subtitles