:00:07. > :00:17.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:18. > :00:19.It was ten years ago - exactly a decade after
:00:20. > :00:22.the credit crunch began - have we really learnt the lessons
:00:23. > :00:35.Live from London, that's our top story on Wednesday, 9th August.
:00:36. > :00:38.Stock Markets are at record highs and personal debt is soaring
:00:39. > :00:47.We will assess what's changed and what hasn't.
:00:48. > :00:50.Also in the programme, Disney's Frozen relationship with Netflix.
:00:51. > :00:54.The media giant says it's going pull all its movies off the streaming
:00:55. > :01:01.And as President Trump threatens North Korea with "fire and fury
:01:02. > :01:06.like the world has never seen", markets and others remain on edge.
:01:07. > :01:11.And we'll be getting the inside track on the controversial business
:01:12. > :01:19.The founder of Nosh Detox will be in the studio with us.
:01:20. > :01:22.And ten years on from the beginning of the credit crunch,
:01:23. > :01:29.we want to hear your memories of the crisis and how
:01:30. > :01:40.Let us know. Use the hashtag BBCBizLive.
:01:41. > :01:55.Get in touch with your memories. I know for us, it was the start of ten
:01:56. > :01:58.long years of covering the stories and the repercussions of it.
:01:59. > :02:01.This week the main stock markets in the US have had another record
:02:02. > :02:05.run and London's FTSE 100 flirted with breaking into record territory.
:02:06. > :02:10.It's a far cry from ten years ago when the global credit crunch began.
:02:11. > :02:16.Ten years ago today - 9th, August 2007 -
:02:17. > :02:19.banks suddenly found that they had billions of dollars in toxic
:02:20. > :02:21.debts that customers couldn't afford to repay.
:02:22. > :02:24.So overnight, they stopped offering loans.
:02:25. > :02:28.The financial crisis that followed cost the British economy over
:02:29. > :02:31.?7 trillion in lost output - that's close to $10 trillion.
:02:32. > :02:35.For the US economy, the cost hit a staggering $22 trillion.
:02:36. > :02:42.So with traders now celebrating a record breaking run
:02:43. > :02:44.on the Dow and other markets, have we really learnt
:02:45. > :02:48.lessons from the mistakes of the financial crisis?
:02:49. > :02:57.On Monday, new figures showed that consumer credit card debt in the US
:02:58. > :03:00.had risen above its previous record, set in 2008, to just
:03:01. > :03:03.In the same month unsecured consumer debt here in the UK
:03:04. > :03:08.topped ?200 billion - that's $260 billion.
:03:09. > :03:11.Again, the previous record was set in 2008.
:03:12. > :03:15.So do the stock markets have it wrong or is this level of debt
:03:16. > :03:24.Ann Pettifor is a Director at Prime Economics and was one
:03:25. > :03:35.of the key voices at the time that said the crisis was coming.
:03:36. > :03:42.Nobody was listening then, were they? No, they thought I was a bit
:03:43. > :03:52.crazy actually. I had some rude comments. I kept being called
:03:53. > :03:55."Chicken licin" On social media. You saw it coming and you were analysing
:03:56. > :03:59.the levels of debt that countries were exposed to. You weren't looking
:04:00. > :04:03.at sub-prime in particular, were you? No. Just explain what you
:04:04. > :04:06.thought would happen? I was working on the debt of the poorest countries
:04:07. > :04:11.which is really small and I looked up and I looked at the debt of the
:04:12. > :04:15.Anglo-American economies and realised that the overhang of debt
:04:16. > :04:18.massively exceeded the income of those countries and people don't
:04:19. > :04:23.repay their debts by selling their properties. They repay their debt
:04:24. > :04:30.out of income and there wasn't enough income to deal with that.
:04:31. > :04:36.Today, those levels of debt are even higher, global income, GDP is about
:04:37. > :04:43.$77 trillion. Global financial assets are $225 trillion which makes
:04:44. > :04:48.$1 trillion that Ben was talking about in consumer credit tiny in
:04:49. > :04:53.proportion. Our real problem is we have had this mass jiff overhang of
:04:54. > :04:57.debt, but income, which we repay our debt in terms of wages and so on is
:04:58. > :05:02.shrinking. Today, for many of us, debt is very cheap. Interest rates
:05:03. > :05:07.are so low and so actually, it pays to borrow in some senses. Right. Are
:05:08. > :05:12.we in for another nasty shock? I think we are. Central banks have not
:05:13. > :05:17.put up rates almost since the crisis, but they're going to at some
:05:18. > :05:21.point. We don't pay Central Bank rates on our debt. We pay market
:05:22. > :05:26.rates. And if you're running a business and you want an overdraft,
:05:27. > :05:35.you gopbt get 0.25% on your overdraft. You would probably get...
:05:36. > :05:41.Have banks learnt a lot of lessons and make sure that they are not
:05:42. > :05:45.subject to bad debt again? The central authorities have ensured
:05:46. > :05:49.they have more capital to shore up their banks, but mainstream banks
:05:50. > :05:52.are peripheral in terms of the global economy. There is a lot going
:05:53. > :05:57.on in the shadow banking system which we don't know and understand.
:05:58. > :06:01.There is a lot going on in that area within China? Absolutely. There is
:06:02. > :06:05.real concern about the level of debt there, the kind of debt within the
:06:06. > :06:09.banking system in China and what that could mean if they have a
:06:10. > :06:13.financial crisis? China is not a free-market economy. It is run by
:06:14. > :06:17.the Communist Party and it is a top down economy and they do a lot to
:06:18. > :06:21.manage their system. They will bail out their banks and we know that
:06:22. > :06:25.they use capital controls to manage flows and so on and so forth. It is
:06:26. > :06:31.hard to judge whether or not they will be able to manage it, but they
:06:32. > :06:36.are being more proactive in managing in than central banks were before
:06:37. > :06:40.2007-2008. Ann thank you for coming in and sharing your warnings acht
:06:41. > :06:48.the time. So you went from the crazy economist to the one that got it
:06:49. > :06:53.right? Yes. Who had ever heard the word, "Sub-prime" Before 2007? It
:06:54. > :06:54.suddenly entered the dictionary. And quantitative easing. That one as
:06:55. > :06:58.well. Plenty of them. Let's take a look at some of
:06:59. > :07:02.the other stories making the news. The media giant Disney says
:07:03. > :07:04.it will launch its own It will show movies,
:07:05. > :07:08.TV shows and sports and will mean the end of Disney's current
:07:09. > :07:11.distribution deal with Netflix. Some sports will also be removed
:07:12. > :07:14.from its US TV channels. It comes as Disney announced a 9%
:07:15. > :07:17.fall in profits for the three We'll be getting more
:07:18. > :07:22.on this later in the show. The Australian bank accused of more
:07:23. > :07:24.than 50,000 breaches of anti-money laundering laws has
:07:25. > :07:28.admitted its reputation is at risk. It comes as Commonwealth Bank
:07:29. > :07:30.of Australia reported record profits of more than US $7.8 billion
:07:31. > :07:48.for the year to the end of June. The big safety scare in the European
:07:49. > :07:51.egg industry mean Belgium's Parliament will interrupt its summer
:07:52. > :07:54.break for a summer hearing. Ministers will have to answer
:07:55. > :07:58.questions about why the country didn't act faster when it was found
:07:59. > :08:01.that traces of a banned pesticide had been found in eggs which ended
:08:02. > :08:04.up in several other European countries.
:08:05. > :08:07.The United States says it is imposing tariffs on imports
:08:08. > :08:18.It's the first case of its kind since Donald Trump became president
:08:19. > :08:21.and raises fears of a trade war between the world's
:08:22. > :08:27.So Monica Miller is in our Asia Business Hub in Singapore.
:08:28. > :08:41.Monica, really, we're going to have a trade war about foil? Is that the
:08:42. > :08:47.case? Well, yes. The US foil makers lodged a pedestrian tuition. They
:08:48. > :08:51.say the foil makers are subsidised by their own country and they get to
:08:52. > :08:54.sell their product in the US at low prices. The US Commerce Department
:08:55. > :08:59.made a preliminary decision to tax Chinese imports that could range
:09:00. > :09:03.between 16.5% and.81% based on the subsidies that the Chinese
:09:04. > :09:09.Government gives. Now, US data shows that imports of foil from China last
:09:10. > :09:14.year were worth almost $390 million. That's just, this is the first case
:09:15. > :09:26.since President Trump took office and he did make repeated promises on
:09:27. > :09:30.the campaign trail that the US would tighten trade against China to bring
:09:31. > :09:34.back jobs. We will talk more about those.
:09:35. > :09:38.Well, ten years on from the financial crisis,
:09:39. > :09:43.This time those escalating tensions between the
:09:44. > :09:47.That's shaken investors in Asia with markets mostly
:09:48. > :09:50.The falls on US markets continued after President Trump warned
:09:51. > :09:53.North Korea that they would face "fire and fury like the world has
:09:54. > :09:57.never seen", if they continued with their attempts to build
:09:58. > :10:04.a nuclear warhead that's able to hit the western US.
:10:05. > :10:06.That's translated to an open like this across Europe,
:10:07. > :10:09.mirroring that weaker close on Wall Street last night.
:10:10. > :10:11.A raft of earnings of some middle-of-the-road players.
:10:12. > :10:14.We'll talk more about those in a moment.
:10:15. > :10:20.Well, as we've talked about, shares in Disney and Netflix likely
:10:21. > :10:28.Earnings continue with media company 21st Century Fox
:10:29. > :10:34.The Rupert Murdoch-led company will likely report
:10:35. > :10:37.a rise in revenue, helped, of course, by a strong performance
:10:38. > :10:41.Now, the company is also seeing strong growth in its domestic
:10:42. > :10:46.But Fox is likely to be weighed down by its weak box office results.
:10:47. > :10:48.What investors will be looking for is any updates
:10:49. > :10:58.Now you may not recognise the name Mylan, but the drug company came
:10:59. > :11:01.under intense regulatory scrutiny recently over the price of its
:11:02. > :11:07.Now, the company will be reporting earnings, but what investors will be
:11:08. > :11:09.looking for is comments on the falling price
:11:10. > :11:20.Richard Dunbar is Investment Director
:11:21. > :11:26.We want to update you on a story that's developing in France. The
:11:27. > :11:33.mayor is talking about what happened earlier today where a BMW drove into
:11:34. > :11:37.soldiers and the mayor said this is no doubt it was a deliberate act.
:11:38. > :11:42.More detail coming through to us. Reports that this car hit soldiers
:11:43. > :11:47.who were on patrol outside Paris. It says it injured six people. Two of
:11:48. > :11:50.them were seriously injured. The vehicle just drove off after that
:11:51. > :11:56.incident. That took place at 8am this morning. That's 6 o'clock GMT
:11:57. > :11:59.in the northern western suburb of Paris. We'll get much more on that
:12:00. > :12:05.for you and bring it to you here on BBC News. When we hear more, we'll
:12:06. > :12:10.update you. The markets across Europe. They are
:12:11. > :12:11.edging lower. Richard Dunbar is
:12:12. > :12:19.Investment Director I know you were listening to our
:12:20. > :12:23.conversation about the ten year anniversary. Your thoughts on that
:12:24. > :12:28.and the decade we've experienced? Well, I'm hoping it is a quieter day
:12:29. > :12:32.than it was this day ten years. I suppose at that time we didn't fully
:12:33. > :12:38.realise the interconnectness of the financial world. We didn't realise
:12:39. > :12:43.the implications to the borrowing that it had been attached to that
:12:44. > :12:47.interconnectedness and we didn't understand fully some of the
:12:48. > :12:52.sub-prime lending you've touched on and the other lending that had been
:12:53. > :12:56.pursued. The domino-effect was quite phenomenal really. The eurozone debt
:12:57. > :13:00.crisis started. It was just incredible, wasn't it, we couldn't
:13:01. > :13:03.have predicted any of that? It was a freezing of the markets that we
:13:04. > :13:08.thought were broad and deep. The wholesale market were many of the UK
:13:09. > :13:12.and global banks were borrowing, moving away from borrowing from
:13:13. > :13:14.customers to borrowing from the wholesale markets. Investors thought
:13:15. > :13:21.the markets were broad and deep and would always be there, and quickly
:13:22. > :13:26.the markets were turned. It has been about regulation and trying to put
:13:27. > :13:31.right what went wrong there. We talked about the Disney Netflix deal
:13:32. > :13:34.or no deal. Disney going it alone. We will see their shares being
:13:35. > :13:38.volatile as investors try and work out what it means. It is great to
:13:39. > :13:41.have a stand alone service, but then you end up having to subscribe to
:13:42. > :13:49.every one of them? It is interesting. Netflix has been one of
:13:50. > :13:52.the darlings of the US stock market. It has been leading the Nasdaq and
:13:53. > :13:58.tech heavy index up and investors thought it was a one-way bet that it
:13:59. > :14:02.could only get better and better for Netflix, but it is a bump in the
:14:03. > :14:07.road for Netflix. It will be interesting to see how investors
:14:08. > :14:09.react and that model isn't as bullet-proof as some investors
:14:10. > :14:13.initially thought. All right, Richard, thank you very much. He
:14:14. > :14:16.will return a lull bit later in the programme as we unpack some more
:14:17. > :14:17.stories in the news at the moment in business.
:14:18. > :14:28.We will get the inside track on the juicing business.
:14:29. > :14:36.You're with Business Live from BBC News.
:14:37. > :14:38.Global security firm G4S has announced increased revenue
:14:39. > :14:45.and profits in its half yearly report The strong results come
:14:46. > :14:47.despite an ongoing fraud investigation by the Serious Fraud
:14:48. > :14:57.Theo Leggett has been looking through the figures for us.
:14:58. > :15:06.Tell more about the results. They look pretty strong, 7.6% rise in
:15:07. > :15:12.first-half profit compared to last year earned ?128 million from
:15:13. > :15:15.continuing businesses. Important to say continuing, because it is in a
:15:16. > :15:24.restructuring programme and is trying to get rid of some of its
:15:25. > :15:31.subsidiaries. It is a global company and the biggest increase in profits
:15:32. > :15:36.came from the US where it recently negotiated a contract for handling
:15:37. > :15:40.cash with Walmart. That was up almost 19%, so solid results, except
:15:41. > :15:43.in India and the Middle East where the monitor I is a nation and a fall
:15:44. > :15:53.in the all price have taken their toll. The share price, down more
:15:54. > :15:56.than 6%. Investors who have favoured this company, its share price has
:15:57. > :16:03.risen a lot since the start of the year, they are not overwhelmed by
:16:04. > :16:06.the results today. A brief word on the Serious Fraud Office
:16:07. > :16:12.investigation. What does that mean for the business? It has been going
:16:13. > :16:16.on since 2013, about an electronic tagging contract. Allegations G4S
:16:17. > :16:22.was overcharging the government by charging for the tagging people who
:16:23. > :16:27.had left the country, were in jail, or actually dead. That investigation
:16:28. > :16:38.is ongoing. The company acquired a new contract for 25 million, links
:16:39. > :16:43.to tagging earlier this year, the. This is a story you might agree
:16:44. > :16:46.with. It is an anonymous story released to the Daily Telegraph from
:16:47. > :16:52.a cabinet minister who wants to be anonymous. He says that he or she
:16:53. > :16:57.believes stamp duty must be reformed because it is exacerbating the
:16:58. > :17:02.housing crisis. Apparently it does save the rate of house moves is
:17:03. > :17:07.reduced by one third because of the cost of stamp duty, just putting
:17:08. > :17:12.people off from buying or moving up the ladder. It is creating a
:17:13. > :17:17.mismatch in the market. More details on the live page.
:17:18. > :17:22.You're watching Business Live - our top story.
:17:23. > :17:30.Today's the tenth anniversary of the beginning of the credit crisis.
:17:31. > :17:34.Banks are now in better shape of quarrelling is once again hitting
:17:35. > :17:38.record levels, personal debt levels, record highs, and stock markets
:17:39. > :17:42.soaring through new records and we are talking about whether it could
:17:43. > :17:48.be the start another crisis. Thanks for your memories we will
:17:49. > :17:49.talk about those in a few minutes. Let's now talk about the idea of
:17:50. > :17:51.health. The idea of making yourself feel
:17:52. > :17:53.healthier is something most people It can mean anything
:17:54. > :17:57.from eating better to exercise It's such big business
:17:58. > :18:00.that the global wellness economy is now worth $3.7 trillion,
:18:01. > :18:02.according to the US based One business tapping into the trend
:18:03. > :18:11.is London based Nosh Detox which produces freshly made,
:18:12. > :18:15.non-pasteurised juice diets as well as detox
:18:16. > :18:18.and nutritional plans. Geeta Sidhu-Robb is
:18:19. > :18:29.the founder of Nosh Detox. It is nice to see you. Welcome.
:18:30. > :18:36.Before we get into the business itself, how did you start this? I
:18:37. > :18:41.understand you used to be a lawyer. Corporate. Telecoms, tax, really
:18:42. > :18:47.corporate. My first child, I think for many mothers, you get derailed
:18:48. > :18:51.when you have children. My first child was allergic to vaccinations
:18:52. > :18:56.and the second and third he ended up with patches of eczema and then
:18:57. > :19:00.covered in it and when he went into remission with the eczema, he had
:19:01. > :19:05.asthma, said he was either scratching himself and leading every
:19:06. > :19:12.night, or not able to breathe. He spent many days in hospital in his
:19:13. > :19:15.first year which was awful. At the end he got cardiorespiratory arrest
:19:16. > :19:22.and stopped breathing and died in my arms. We ended up in a coma, in
:19:23. > :19:28.intensive care in St Mary's, who were lovely. I sat there looking at
:19:29. > :19:32.this, and I was so young, and he was about this big with tubes everywhere
:19:33. > :19:37.and I thought, never again. There was no medicine, nothing to treat
:19:38. > :19:46.him with. What you treat eczema and asthma? It is supposed to be
:19:47. > :19:49.incurable. I thought nothing would help him. When he finally woke up, I
:19:50. > :19:53.took him out and said, we are never going back. I went searching for
:19:54. > :20:00.alternative ways and I am a lawyer so I know how to read boring
:20:01. > :20:06.information and pull a fact. Have you fixed your son? That is
:20:07. > :20:12.debatable because he is a teenager. He is completely eczema free and
:20:13. > :20:18.100% asthma free. He has not had asthma since I do not know when.
:20:19. > :20:24.That is through what he is eating? 100% what he eats, when and how Pete
:20:25. > :20:28.and the way he approaches nutrition. He is the only child at university
:20:29. > :20:35.who cooks all his meals in the salad! We talked about detox in the
:20:36. > :20:39.introduction. It is a misused word. Detoxes is going cold turkey or
:20:40. > :20:46.needing treatment for alcohol addiction. It has been used by the
:20:47. > :20:52.nutrition industry, everything is detox. Ultimately you are offering
:20:53. > :20:59.healthier eating. I am yelled at a lot but the reason the company came
:21:00. > :21:07.around I wanted to call it Nosh, which is natural and healthy and
:21:08. > :21:15.then had to call it Nosh Detox. We should be looking at what we eat
:21:16. > :21:20.which impacts how we are, we look, wrinkles, skin quality, everything
:21:21. > :21:24.is about what goes in your mouth. Detox has a bad name because of the
:21:25. > :21:30.emotional connotations of alcoholism and things like that. Doctors,
:21:31. > :21:35.scientists, say... How would they know? They do about three hours
:21:36. > :21:39.nutrition in their medical career. There has been research and analysis
:21:40. > :21:46.into this process of detox and many argue it is not, there is no
:21:47. > :21:52.scientific basis to say it is the truth as such in the sense it will
:21:53. > :21:56.cure eczema or asthma. But you are what you eat, it will help you and
:21:57. > :22:02.make you healthier, perhaps, do you see what I mean? Many people look at
:22:03. > :22:06.you and think you are making a massive industry and profit out of
:22:07. > :22:12.something that is not necessarily realistic. It is such a shame
:22:13. > :22:16.because what happens is I do not have the big budget to fight a
:22:17. > :22:21.pharmaceutical company who will say it is scientifically proven to work
:22:22. > :22:27.like this. If you drink a bottle of vodka... It is academics... If we
:22:28. > :22:32.spent more time eating better and living better, we would spend less
:22:33. > :22:36.time using up NHS resources. We should look at a diet and the way we
:22:37. > :22:42.eat and live long before we go anywhere near a doctor. I look at
:22:43. > :22:47.people who look really tired, they are grey and obese and nobody is
:22:48. > :22:53.saying what you eat doesn't matter. I think most people would agree you
:22:54. > :22:56.are what you eat and what you eat is important. What would be the
:22:57. > :23:01.argument against it? I think they are saying you do not replace one
:23:02. > :23:07.with the other. I think we do much. We should eat less. But we are
:23:08. > :23:11.talking about medicine and eating. I say wellness and illness are
:23:12. > :23:17.different things. There is a huge category of wellness way before you
:23:18. > :23:22.get sick. ! And asthma, supposedly incurable but if you support the
:23:23. > :23:28.body's natural process, what will happen is you would get so much
:23:29. > :23:32.better and understand what to do about illness. We look at businesses
:23:33. > :23:37.and I know celebrity endorsement is important because that will get you
:23:38. > :23:45.headlines and get people to notice. Are we gullible? We see a celebrity
:23:46. > :23:51.uses this, but if you look at the peer review and evidence, we get
:23:52. > :23:56.blindsided by the celebrity. We are careful because around 24% of my
:23:57. > :24:00.business is global household names that I make everybody pay, because
:24:01. > :24:05.it is how we earn a living so we cannot talk about who is on the
:24:06. > :24:11.database. Celebrities are obligated to look amazing and functioning.
:24:12. > :24:17.Filming is hard work, starting at 4am and going to ten o'clock and you
:24:18. > :24:21.cannot afford to get sick. Celebrities look for the newest and
:24:22. > :24:25.most effective ways to look good and feel good and that is why we should
:24:26. > :24:29.follow them, not just because they are a celebrity. When did a
:24:30. > :24:37.celebrity last look tired and horrible? We know this because on
:24:38. > :24:41.social media and anywhere, they will look beautiful, photographs, great
:24:42. > :24:47.make-up. You meet them in person and they look amazing. They look amazing
:24:48. > :24:51.all the time. I don't know, we get a lot of celebrities. It depends how
:24:52. > :24:57.and when you meet them. My programme at 5am, they go to make up. How
:24:58. > :25:02.accessible is what you are finding and providing in the marketplace to
:25:03. > :25:07.those who really need it, the mum who has the child that has bad
:25:08. > :25:11.eczema, and cannot afford what you are supplying. I am aware of that
:25:12. > :25:17.because I have been a single mother and my business was set up to feed
:25:18. > :25:22.my children, because there is a ten year gap between learning and
:25:23. > :25:29.applying. We give away so much free information, free books, recipes and
:25:30. > :25:33.ideas, everything. It is committed to helping people, Nosh Detox, not
:25:34. > :25:38.just because you pay us. Really nice to see you. So much to talk about
:25:39. > :25:42.that time is tight. A very good discussion. We can throw
:25:43. > :25:49.out some of the memories. People getting in touch about the
:25:50. > :25:54.global crisis. Matthew said he graduated after the crash and big
:25:55. > :25:57.problems for employment. Pamela said she was made redundant and went back
:25:58. > :25:59.to study and is happy in a new career so a good ending for Pamela.
:26:00. > :26:13.Goodbye. Good morning, it is a wet start
:26:14. > :26:14.across many parts of