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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
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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