08/08/2017 BBC Business Live


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Live from London, that's our top story.


Corruption, Recessions and unemployment have dogged


South Africa in recent years and today the man at the top


President Zuma could be forced to go in a secret parliamentary vote.


And money-laundering allegations that could lead to a theoretical


fine of close to $800 billion have lead to the boss of


Commonwealth Bank somewhat unsurprisingly losing his bonus.


And markets in Europe have started their trading day. Slightly down on


the day and we'll explain why. And we'll be getting


the inside track on the surprisingly profitable world of babaysitting


and the company that's trying to turn it from a job for students


into a global business. We want to know today which app


could you not live without? Let us know. Use the hashtag business live.


President Zuma of South Africa faces a no confidence vote in parliament


today and as it's being held in secret there's a real chance


that he could be kicked out of office by the end of the day.


Mr Zuma has survived no-confidence votes previously


but this time the stakes, both political and economic,


Mr Zuma has been under constant pressure over everything


from corruption allegations to a controversial cabinet


reshuffle that saw his widely respected finance minister,


That prompted two of the world's leading credit rating agencies;


Standard and Poor's and Fitch, to downgrade South Africa's credit


worthiness to junk hugely increasing borrowing costs


And in June South Africa once the continents largest economy fell


And figures out yesterday show the country's unemployment rate


remained unchanged at close to 28% in the second quarter.


That's about 6.2 million people out of work.


Dr Joachim Wehner is a South Africa expert


Nice to see you. Welcome to the programme. Running through some of


the background to this there. It's worth restating why South Africa is


in this position. The economic picture looks pretty dire right now?


That's true. And you have to see it in the context. For 20 years after


the end of apartheid, South Africa worked extremely hard to establish a


reputation for economic credibility and good economic management, for


short periods the first Finance Minister who Jacob Z uma fired


triggered the week in 2015 where South Africa went through three


Finance Ministers when the space of a few short days. So Mr Zuma has put


the credibility of South Africa at risk. How much of this can be blamed


on President Zuma? There are some factors that are out of his hands,


one can say, for example the drought. Successive droughts in


South Africa, weak global demand for mining output for example, that is


dampening prospects for the mining sector in South Africa. But the


ratings agencies have emphasised what they see as a major problem is


Mr Zuma's handling of the institutional framework for the


economic system and that has done a huge amount of damage in undermining


the credibility that so many Finance Ministers have worked hard over 20


years to establish. And so the uncertainty that now comes from this


vote, interesting that we heard over the weekend the vote will take place


in secret, that could affect the outcome significantly? That's very


true. It's probably the first time that there is a realistic chance


this might go through, this vote. It's probably not the most likely


outcome because the electoral system in South Africa is based on close


list proportional representation, that means MP who is sit in


Parliament, it's the African National Congress in particular. If


we get this vote today and he's ousted from office, the question I


suppose is who would replace them? Is there a willing candidate,


certainly from an economic point of view someone who would restore


credibility? I think you have put your finger on the right issue here.


Getting rid of Mr Zuma is only the very first step and a few questions


arise here - how long can he cling on to power? He's proven himself to


be extremely intelligent so it wouldn't surprise me if he stays


until 2019. The second question then arises who will replace him. There


is a struggle in the ANC now. A camp Mr Zuma's tried to Foster, a


successor, his former wife who would probably protect him once he leaves


office, make sure he's not exposed to legal proceedings or a more


reformer camp led by a current deputy President. Interesting times


certainly as far as the implications are concerned. Dr Joachim, really


good to see you, thank you very much.


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


The Google employee who wrote a memo critical of the firm's diversity


initiatives has been fired from the company.


A male software engineer argued the lack of women in top tech jobs


was due to biological differences between men and women.


Google's chief executive responded by saying the contents of the memo


are fair to debate but some of what was written


A Scottish comic book company has been bought


It's the first ever acquisition by Netflix but they haven't said giw


Millarworld is run by the Scottish writer


The deal gives Netflix access to a host of new characters


to develop films, TV series and children's shows.


The worlds biggest hotel chain Marriott is going to team up


with Alibaba to tap into the growing number of Chinese tourists.


Marriott International says the joint venture will allow Chinese


travellers to book rooms using Alibaba's travel website


Australia's Commonwealth Bank has scrapped its bosses bonus


for damaging the bank's reputation amid allegations it broke


money-laundering and counter-terrorism financing laws...


Hywel Griffith is in Sydney, Australia.


Hywel, this could be a humongous fine. Tell us more about this story?


Absolutely. Some of the numbers here are staggering. The bank is accused


of over 53,000 breaches of anti-money laundering laws and each


one of those could potentially carry a $14 million US Dollar fine. It's


accused of not making proper checks on intelligent money depositing


machines, the hole in the wall where you can put money in as well as take


it out. Customers are able to put in up to 200 high value notes but the


checks weren't being made, as they were meant to be, on the provenance


on the where that money was going to, so the money could be


transferred domestically or internationally without the checks


being made. The bank argues it's down to a single coding error,


saying they should only really face one fine. It's all going to be


decided in a federal court of claw. What has already been decide suicide


the bank's Chief Executive and board members are going to suffer


somewhat. The Chief Executive losing his bonus for this year, as will the


senior executives and the board members taking a cut in their pay.


But potentially the cost could be much greater in future, some


analysts predicting the whole decade of growth for the bank wiped out if


they face the maximum fine. Sounds very, very costly indeed. For now,


thank you very much. Let us show you how the day went in general in the


Asian markets. Japan taking a breather from the ten-year highs it


reached yesterday, whereas Hong Kong up nearly half a percent. That is


the night before, the Dow still going up-and-up above 22,000, way


above that now. It's quite interesting how that just doesn't


seem to end, that run on the share markets in the United States. Let's


move on to Europe very quickly. Lots of earnings coming out in Europe


still. Note as busy as last week. Standard Life reporting a rise in


profits, also we have ASOS talking about expansion in the US in


Atlanta. Retail sales falling though in the UK, so a flat day, if not a


downbeat day for Europe. And Michelle Fleury has


the details about what's ahead Jane Foley will join us later and


people will be tuning in to see what is said. Her message is likely to


emphasise that whilst 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 incoming economic data reinforce that argument? Two


pieces to watch this Tuesday is the case Schiller House Price index.


Uber's search for a new CEO meanwhile continues, after the


resignation of the CEO last week. There are a few in the running.


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


Good morning, Jane. We picked this story up in Bloomberg. It's an


interesting problem to have. Warren Buffett has too much money. Why is


that news, we knew that already? ! But what is he going to do with it.


This is a problem. This is a company that doesn't pay dividends. He is a


pilot of cash. Cash doesn't earn much in terms of return. His problem


is where to invest. There is a small pool of companies he'd be willing to


consider. He's made the point that it would be much more fun if the


phone were to ring and business propositions were to fall his way,


but as it stands, there is some difficulty trying to know where to


put all of that money. Lovely to have that problem. This graph shows


how he's managed to rack up the money. 99.7 billion dollars at the


end of the second quarter. He's got all these great businesses making


money but he's notoriously picky? But you have to remember he's been


doing this for the best part of 50 years so this is a long-standing


investment but that is exactly right. He's very picky. Some


companies he owns are really well-known ones, Apple is another


one. He's been known to invest also in utilities. Texas and Rail Road


are a couple of them. Very picky, relatively diverse in that sense but


only a small amount of companies. We'll be back soon. Really


interesting stories to discuss with you later. If you are a parent, stay


with us. Intercontinental Hotels Group has


just reported an 8% jump in half year operating profit and we've been


speaking to their new boss. You're with Business


Live from BBC News. Retailers experienced slowing sales


last month as households reined in their spending amid mounting


pressure on their finances. According to the latest figures


from the British Retail Consortium and KPMG, sales grew by 0.9%


in July, down from 1.1% Theo Leggett is in our


Business Newsroom. They came from a strong set of


figures last year so this year it's hard to keep up? Yes, last year was


particularly strong. On the surface, these figures from this year don't


actually look too bad. They are showing slow but steady growth


throughout the year. What is worrying is, if you look beneath the


surface because nearly all of the growth was accounted for by sales of


food. In fact over the past three months taken as a whole, nonfood


sales have declined and when it comes to food sales, it's not about


more food being sold, it's about prices going up as well. That is


accounting for the increase. The broad picture there is not so good.


The BRC has a warning in all of this as well, saying that because real


wages are declining, there is a smaller pool of consumer wealth out


there to draw from and there's a lot of competition among retailers. That


is where it gets political because the BRC says given the outlook for


consumers is so tough, the Government needs to make sure it


keeps tariff free trade with the EU as a priority in Brexit talks.


Pretty much everybody is talking about what they want from Brexit


talks at the moment but that is the BRC's take on it. Also the issue of


online versus high street, bricks and clicks, you have got to be be


successful if both in this environment where it's getting


tougher in terms of people spending? Absolutely. That is what the best


retailers are doing. Over the past month, in-store shopping and online


retailing grew. If you look over the past three months, a slightly longer


time frame, then in-store sales have declined and declined by a


reasonable margin, whereas online sales have gone up by about 8% in


the same period, so online sales still growing.


For the rest of the business news, you can check out the web page. ASOS


spending $40 million on a new warehouse in Atlanta.


You're watching Business Live. Our top story:


The South African President, Jacob Zuma,


is facing one of the most testing episodes of his rule.


The speaker of parliament has announced that a no confidence vote


Pauline says, "I could live without them all, but Twitter keeps me


posted on a variety of stuff." Another viewer says "BBC News."


Another viewer says fit bit." What do you use the most? Twitter and the


BBC News app, of course. I'm a weather app person, but then you


have a dog and I have to walk regularly.


We use apps to solve all sorts of day to day problems.


Food delivery, taxi services and shopping.


But would you trust an app to find someone to look after your children?


Making sure children are looked after while you're working is a big


One charity found that 75% of parents would assess


their childcare before taking a new job or promotion.


The same survey found 30% of parents say they feel burnt


Some extra help can, of course, help with that.


For many parents, the biggest issue can be finding


Yoopies is a new start-up hoping to change all of this.


It's a website which connects parents


We have the boss with us. Benjamin thank you very much of thank you


very much indeed for coming into Business Live. Tell us how this


started. You're not a parent, are you? I'm not, but I have three


sisters and when I finished my studies two of them had become a


mother. I the couldn't have a proper dinner with them, there were always


childcare issues. I realised they only had two choices. Either they


rely on expensive agency or a local newspaper that was not trusted


enough to find a great sitter so then I realised there was a huge


opportunity to create a trustworthy environment for baby-sitting,


childcare and home care services. Let's talk about that trust.


Obviously the website then makes it easier to do verification checks,


criminal record checks, how does that work? All the sitters are


verified are DBS checked. We verify their ID and we use the power of


online social media for our usersment people can link their


Yoopies account to with their Facebook account and they can see


that any friends or friends of friends who already have recommended


a baby-sitter. So we check the word of mouth and we put it on the


internet. This started in France. You've spread across a lot of


Europe. You've bought a UK in the UK Find A Baby-sitter.com. Sour


aexpanding here as well. It is a really, really crowded market, not


just apps like yours, but many other Facebook pages or websites or online


services that provide everything you need if you are a parent including


baby-sitters. Sure, but we do provide a comprehensive service that


goes from finding the perfect match to online booking and payment. We


assist with all Government assistance. So basically you can


find a perfect sitter within ten minutes. We only have five persons


of our best sitters that are selected for emergency care and we


provide all the rest. So the people can find trustworthy people easy.


How do you make sure you get your money for your services provider? I


jumped on your website this morning and I searched for a baby-sitter for


me and gave it a test and a great baby-sitter was matched to me and I


sent her a message and she is a mile away from my house, I can meet her


for a coffee and decide what I want and I don't have to pay you. Most of


the times usually you want to talk to a few of them and we are charge a


monthly fee for people to actually get... I haven't met her yet. If we


get on, I don't really need to pay you a fee, do I? You have to pay a


fee at first to get unlimited contacts with our baby-sitters, our


nannies on the website. So you will have to pay first ?30 and then you


can actually meet with her and have great childcare for your kids. Not


just about Its childcare. It will let you find other things. Your plan


is to roll out into the workplace as well? Exactly. This is interesting.


It might moon you could get food delivered to our desk and book a


massage or get someone to take your dry cleaning and laundry. That's


part of the challenge of the productivity. If we are all busy


maybe being able to do that at the office? It is a difficult thing to


improve your work-life balance when you are in the company, imagine your


child is sick, you need to do a lot of things and companies need to


attract and retain talent. So we provide the platforms for cans and


for the employees in order to find great childcare and food delivery


and everything in a one stop shop platform where they can find trust


within the company because you can find a great profile that's been


recommended by your co-worker. Sally is laughing because this is what I


want! Ben is thinking, OK, I have my


massage, they deliver my bacon sandwich to my desk. You're living


in Havana! I have to talk to the BBC then for you! Thank you for your


time. It is great to meet you today. Let's turn from booking babysitters


to booking hotel rooms. The company behind brands


including Crowne Plaza, Holiday Inn and InterContinental


says operating profits were up 8% in the first


half of this year. But the amount of money


InterContinental Hotels Group makes per room,


a really important measurement in the hotel business isn't


growing as fast as it was. The new boss is Keith Parr and he's


been telling me why. This industry grows two ways -


by adding rooms and by growing RevPAR and so we saw a softer second


quarter in RevPAR as did the rest of the industry principally driven


by the United States. That's a lot it do with the shifting


of the Easter holidays and also some slowlying in some


of the oil markets. Additionally we have a big


renovation programme going on in the US to add


in new guest rooms and public space design for our Holiday and Express


brand and that's been a bit of a headwind in the US,


but we're seeing strength through our markets like Europe


with RevPAR up over 6%. We saw RevPAR up in China,


over 4% leading to revenue growth So on a global basis,


we're seeing real strength It's what underpins our strong


performance in terms He was at the company for 25 years


and it was interesting to talk to him. I asked him what would you do


if you are the boss and he is the boss and he had a very kind of slick


answer, John Terry just keep the strategy." I was hoping for


something really radical. You never get that on results day. That's why


they have to do the Inside Track. Jane is here. This is a story we


picked out of the Washington Post. China, not President Trump, is


suddenly helping American steel. President Trump probably takes


credit for it, but it is other factors at play. This is an


interesting story. It does help correct the misconceptions that were


out there since the Trump presidential campaign and


particularly that very little of Chinese steel goes to the US. Trump


was talking about China dumping steel in the US. This report says


only 1% of US steel comes from China, but perhaps a big reason for


this story is that China is shutting down some of its very dirty plants.


They are producing less steel, but China is using up a lot of steel.


China is the biggest consumer of commodities in the world. It absorbs


iron ore and coal which make steel and it's doing a lot of


construction. Making a lot of buildings, residential and roads and


this is one of the ways it's doing it is taking up a lot of debt. But


it's absorbing a lot of these materials itself. The front of


today's Telegraph. British children must spend more time online so they


can save the country says spy chief. He was perhaps making parents feel


less guilty. It is all about balance. He said that maybe if we


are a little bit behind in terms of our digital rivals and therefore,


allowing children to explore the web more helps increase those skills


which might be good use or good for the country in the longer term, but


of course a lot of people said, no, no, it is the equivalent of jung


food for China etcetera, etcetera. Jane, what app can you not live


without? I like a bit of whatsapp. For me, it's the newspapers.


Interesting. Thanks, Jane. Nice to see you. Dominic says, "Whatsapp.


Staying in touch with friends and family." Yeah, I use that one a lot


too. We will see you tomorrow. Bye-bye.


Good morning. The unpleasant weather continues across England and Wales.


This morning we have had heavy rainfall around. Throughout this


afternoon further heavy showers


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