:00:07. > :00:10.This is Business Live from BBC News with Ben Bland and Jamie Robertson.
:00:11. > :00:15.The de facto boss of the South Korean giant faces five
:00:16. > :00:17.years in jail for crimes ranging from bribery to perjury.
:00:18. > :00:40.Live from London, that's our top story on Friday the 25th of August.
:00:41. > :00:45.As a court in South Korea finds Samsung heir Jay Y Lee
:00:46. > :00:47.guilty of paying bribes, we ask what it means
:00:48. > :00:50.Plus, the flying kangaroo bounces ahead of its rivals.
:00:51. > :00:52.Qantas has posted blockbuster results today, despite
:00:53. > :01:01.This is how the European markets look at the start of the trading
:01:02. > :01:11.day, investors around the world will look to the meeting of the world's
:01:12. > :01:17.Central bank happening in Wyoming. Slowing demand for the latest
:01:18. > :01:22.smartphones. Our own technological Guru Rory Cellan-Jones will be with
:01:23. > :01:26.us. It's announced self driving lorries will be tested on UK roads,
:01:27. > :01:31.so we ask if you would be happy driving next to a 44 tonne
:01:32. > :01:44.driverless juggernaut. Use the hashtag to get in touch.
:01:45. > :01:51.Some tweets coming in, one viewer says it's terrifying but exciting,
:01:52. > :01:54.the thought of driving next to a driverless truck.
:01:55. > :01:57.A court in South Korea has found the heir to the Samsung
:01:58. > :02:00.empire guilty of bribery, embezzlement and perjury.
:02:01. > :02:05.Jay Y Lee, the de facto head of the $300 billion
:02:06. > :02:08.business empire - and grandson of the founder -
:02:09. > :02:10.has been sentenced to five years in jail.
:02:11. > :02:27.It started with this - $36 million donated by Samsung
:02:28. > :02:29.to organisations linked to former South Korean president
:02:30. > :02:33.She was removed from office and is also facing corruption charges.
:02:34. > :02:35.Back in 2015 the Samsung conglomerate was undergoing
:02:36. > :02:38.restructuring, with a controversial merger of two of its businesses.
:02:39. > :02:44.Prosecutors argued the aim was to boost Mr Lee's personal
:02:45. > :02:47.power over the company, which he's been running since his
:02:48. > :02:54.The deal needed shareholder backing from the national pension fund,
:02:55. > :02:58.which is run by the South Korean Government.
:02:59. > :03:01.Prosecutors argued the donations were bribes to win
:03:02. > :03:06.The affair has once again raised concerns
:03:07. > :03:10.about South Korea's business culture - and the huge family-owned
:03:11. > :03:17.They've long been seen as too cosily linked to government -
:03:18. > :03:18.and not sufficiently transparent in their dealings.
:03:19. > :03:24.To give you an idea - sales by Samsung companies account
:03:25. > :03:34.for around a fifth of South Korea's entire economy.
:03:35. > :03:38.Our business reporter Yogita Limaye is outside the courthouse in seoul
:03:39. > :03:45.All these pieces linked together by the prosecutors and the judge
:03:46. > :03:48.believed there was a proper link between the payment of this money
:03:49. > :03:55.right the way through to basically corruption at government level?
:03:56. > :04:02.That's right. What the court has said is that this money was paid to
:04:03. > :04:05.get President Park, the former president of South Korea's support
:04:06. > :04:10.for the merger of the two Samsung companies to pave the way for Mr Lee
:04:11. > :04:16.to eventually become boss of the firm. The court found him guilty
:04:17. > :04:22.also of embezzlement, perjury and hiding assets over seas. The
:04:23. > :04:27.five-year sentence is significant. This is not the first time the boss
:04:28. > :04:32.of a big conglomerate has been found guilty or convicted, but in the past
:04:33. > :04:38.the sentences have been suspended or they have presidential pardons. Mr
:04:39. > :04:43.Lee's lawyers have already said they will appeal, but if he does end up
:04:44. > :04:47.spending a significant amount of time in jail, that will be a
:04:48. > :04:53.departure from what we have seen here in the past. The new president
:04:54. > :04:58.who won elections after the former president was impeached over this
:04:59. > :05:01.entire corruption scandal, the new president has said there will be no
:05:02. > :05:08.more presidential pardons and they want big conglomerate 's ear to
:05:09. > :05:14.clean up. If we see Mr Lee Knauss is now spending a large amount of time
:05:15. > :05:20.in jail, it gives a message for other businesses to clean themselves
:05:21. > :05:27.up. How significant is this for South Korean business culture?
:05:28. > :05:31.Firstly, think about what the Samsung group means for this
:05:32. > :05:34.country. It would be hard to find a person in the country who has not
:05:35. > :05:40.used a Samsung product or service. They are not just smartphone makers
:05:41. > :05:43.in the country, they are into construction, shipbuilding,
:05:44. > :05:46.insurance. There are Samsung hospitals and universities and even
:05:47. > :05:50.a Samsung amusement park. They account for a fifth of the economy
:05:51. > :05:54.here. Speaking to people about what they think about the trial, I have
:05:55. > :06:01.seen a distinction between what the younger people think and older
:06:02. > :06:04.people. Younger people are anti-corruption and want to see
:06:05. > :06:08.justice done, whoever it is. A lot of older people remember Samsung and
:06:09. > :06:11.big conglomerate seer as being the companies that pulled the country
:06:12. > :06:18.out of poverty after the Korean War in the 1950s and into a good
:06:19. > :06:22.economic place. That's way they say there should not be a severe
:06:23. > :06:27.sentence. Outside the court we have seen protests both ways, people
:06:28. > :06:29.protesting against corruption, and also people who are pro the former
:06:30. > :06:39.president and therefore pro-Samsung. A bit of breaking news. The British
:06:40. > :06:45.Foreign Minister Boris Johnson has told the BBC that he thinks some of
:06:46. > :06:51.the sums for Brexit seem to be very high indeed. In his words, he says
:06:52. > :06:54.we should not pay a penny more or a penny less than we think our legal
:06:55. > :07:03.obligations amount to in the Brexit built talks. That was the British
:07:04. > :07:09.Foreign Secretary on his thoughts on the British exit will. The
:07:10. > :07:11.government will be publishing its position papers as it entered the
:07:12. > :07:13.next stage of negotiations. Let's take a look at some
:07:14. > :07:15.of the other stories Music streaming service Spotify has
:07:16. > :07:19.signed a new licensing deal with Warner Music Group -
:07:20. > :07:21.paving the way for After deals with Sony and Universal,
:07:22. > :07:26.Warner was the last of the three big record labels to agree to renewed
:07:27. > :07:29.terms to make its catalogue available to Spotify's
:07:30. > :07:33.140 million users. Investors have been selling off
:07:34. > :07:36.shares of supermarkets in the US after Amazon said it
:07:37. > :07:38.would complete its takeover The e-commerce giant plans
:07:39. > :07:44.to sell Whole Foods brand products on its website,
:07:45. > :07:47.integrate its systems to offer Prime members discounts and provide Amazon
:07:48. > :07:50.pick-up spots at Whole Foods stores. Walmart, Target and Costco
:07:51. > :07:56.all saw their shares fall. Small convoys of partially
:07:57. > :07:59.driverless lorries will be tried out on major British roads by the end
:08:00. > :08:02.of next year, the government A contract has been awarded
:08:03. > :08:10.to the Transport Research Laboratory to carry out the tests
:08:11. > :08:15.of vehicle "platoons". Up to three lorries will travel
:08:16. > :08:17.in formation, with acceleration and braking controlled
:08:18. > :08:29.by the lead vehicle. We have been asking you for your
:08:30. > :08:33.thoughts about that. Steve has said he prefers the idea of driverless
:08:34. > :08:37.lorries than me sometimes swerving human version. Let us know if you
:08:38. > :08:42.agree with Steve or if you take the opposite view. They call it elephant
:08:43. > :08:47.racing when the two trucks are racing each other. As you not heard
:08:48. > :08:54.that expression? Elephant racing up the motorway.
:08:55. > :08:57.Australian airline Qantas has posted its second best
:08:58. > :09:02.annual profit ever - despite fierce competition from its rivals.
:09:03. > :09:04.Boss Alan Joyce is calling it a vindication of his three
:09:05. > :09:06.year turnaround plan - which has involved
:09:07. > :09:21.Christine Hart is in Singapore for us. Three years of pain for some,
:09:22. > :09:29.but apparently it has paid off. It's paid off in a very spectacular way.
:09:30. > :09:33.Pre-tax profits at just over 1.1 billion, the second highest profit
:09:34. > :09:38.the airline has seen in its entire 97 year history. That's saying quite
:09:39. > :09:44.a bit. They also on Jet Star. Qantas credits those result to effective
:09:45. > :09:48.cost-cutting measures and a very robust domestic travel market. Its
:09:49. > :09:53.loyalty business has seen very strong growth. Going forward,
:09:54. > :09:57.improving the customer experience, we talk about Wi-Fi, better Wi-Fi,
:09:58. > :10:05.lounges and services, all those offerings will be more important in
:10:06. > :10:11.its strategy. It will also expand offerings for trips. It will have
:10:12. > :10:17.Perth to London direct next year. It will also be working on Sydney to
:10:18. > :10:21.London by 2022. For now, Alan Joyce has said the turnaround is complete
:10:22. > :10:28.and that's what we have to go on. Thank you, Christine. Let's take a
:10:29. > :10:33.look at how the markets are doing. Asian stocks advanced on Friday.
:10:34. > :10:38.Once again shrugging off a sluggish day on Wall Street. Tokyo stocks
:10:39. > :10:42.rising, as Tokyo and Honda chalked up games with investors focusing on
:10:43. > :10:49.the key meeting of the world's top central bankers gathering in
:10:50. > :10:52.Wyoming. We can flip the boards to show you the European markets.
:10:53. > :10:58.That's how they start the trading day, all in positive territory. We
:10:59. > :11:03.can take a look ahead to what we might expect from the Wyoming
:11:04. > :11:08.meeting in Jackson Hole. And Michelle Fleury has
:11:09. > :11:10.the details about what's ahead Investors' attention this
:11:11. > :11:13.Friday will be on a small resort town in Wyoming -
:11:14. > :11:15.not for the fly fishing, but for the annual gathering
:11:16. > :11:18.of central bankers from around US Federal Reserve chair
:11:19. > :11:21.Janet Yellen speaks in the morning. Mario Draghi, the head
:11:22. > :11:24.of the European Central Bank, In the past, this meeting has been
:11:25. > :11:28.used to make big announcements - not this time, according
:11:29. > :11:30.to many market watchers. Well, because even though the US
:11:31. > :11:34.and Europe are stepping back from the stimulus measures
:11:35. > :11:36.introduced after the financial crisis, Ms Yellen and Mr Draghi have
:11:37. > :11:41.good reasons to keep their cards With Janet Yellen's future
:11:42. > :11:47.at the Federal Reserve uncertain, few expect her to make
:11:48. > :11:50.any ground-breaking statements. And even though Mario Draghi's
:11:51. > :11:53.speech is seen as perhaps more significant this time,
:11:54. > :11:58.he may choose to play it safe. The markets got excited
:11:59. > :12:01.after a recent speech he gave at another central bank conference
:12:02. > :12:04.in Portugal, and he was forced On the economic front,
:12:05. > :12:09.watch out for the latest durable goods orders,
:12:10. > :12:11.that's due to be released Joining us is Nandini Ramakrishnan,
:12:12. > :12:30.global market strategist at Good to see you as always. Plenty to
:12:31. > :12:33.talk about. All eyes on the world's Central bankers and whether we will
:12:34. > :12:39.get hints from any of them about balance sheets tapering and moves on
:12:40. > :12:44.interest rates. The big ones to watch our Janet Yellen and Mario
:12:45. > :12:48.Draghi. Both central banks doing a lot with their policy this year.
:12:49. > :12:52.Janet Yellen of the Federal reserve, will they reduce the amount of
:12:53. > :12:55.assets they have lost tonight all the bonds they have been buying in
:12:56. > :13:00.the last few years, all stuck in a vault somewhere. That's how I like
:13:01. > :13:04.to think of it. It's been ten years since the crisis, starting to reduce
:13:05. > :13:09.that will have an effect on the market, specifically longer term
:13:10. > :13:12.government bonds in the US. They suggested that they would do it so
:13:13. > :13:16.slowly and other such a long period of time, some of the bonds will
:13:17. > :13:20.mature and disappear anyway so we will not even notice. That's a bit
:13:21. > :13:24.of an overstatement and I think we will notice in the market. We will
:13:25. > :13:28.see yields and interest rates over the longer ten or 30 year bonds will
:13:29. > :13:30.go up because there is less demand from the big buyer, the Federal
:13:31. > :13:37.reserve, buying them up over the last ten years. All the idea of
:13:38. > :13:41.long-term and short-term interest rates starting to rise over the next
:13:42. > :13:47.couple of years. Ticking up slowly. Different dynamics will be reflected
:13:48. > :13:53.in the yield curve and it will move differently across the world. On the
:13:54. > :13:57.mind of Mario Draghi as president of the European Central Bank, if he
:13:58. > :14:01.starts to raise interest rates for the Eurozone, we could see the euro
:14:02. > :14:08.strengthened and that could be a problem for the European exporters.
:14:09. > :14:11.For the ECB, compare to the US Fed, they are behind. They are not
:14:12. > :14:17.reducing the amount of assets, they are thinking about reducing the
:14:18. > :14:19.amount day at every month. The euro has been one of the strongest
:14:20. > :14:22.performing currencies over the course of the year and it could
:14:23. > :14:26.affect big exporting nations like Germany who have a lot of revenues
:14:27. > :14:30.coming from abroad. Watching that currency will be very important.
:14:31. > :14:31.Stick around, we will talk to you about the papers later in the
:14:32. > :14:33.programme. Still to come, this
:14:34. > :14:38.week's digital takeaway. Technology correspondent
:14:39. > :14:40.Rory Cellan-Jones will chart a path through all the big tech stories
:14:41. > :14:43.of the week, including the news that Estonia is looking
:14:44. > :14:45.at launching its own You're with Business
:14:46. > :14:58.Live from BBC News. Now, big brands influence
:14:59. > :15:01.what we buy through clever advertising on billboards,
:15:02. > :15:04.TV and social media. But in an increasingly
:15:05. > :15:08.crowded world, how are they going to connect
:15:09. > :15:11.with consumers in the future? Let's talk more with our business
:15:12. > :15:13.correspondent Ben Thompson. He's at a 2,000 square feet
:15:14. > :15:32.showroom called The Home Where is it? Here is by the fridge
:15:33. > :15:35.at the back! Here is getting a beer! Increasingly backed fridge this
:15:36. > :15:39.morning, as well as the media market, in which all of this works.
:15:40. > :15:43.We are at the house of the future, and if you think it is dark, this is
:15:44. > :15:50.all wired up, so let me try this. Kitchen lights on. And there we go,
:15:51. > :15:55.the lights come on. So this is just one example of a wired home, and all
:15:56. > :15:59.of the stuff in this place is pretty hi-tech, so your TV can speak to
:16:00. > :16:05.your fridge, it knows what is in the fridge, because it has got a camera,
:16:06. > :16:09.and it will know from your online deliveries when it is due to go off.
:16:10. > :16:14.It will suggest recipes, it will even turn on the oven to tell you
:16:15. > :16:18.when to put it in, and when to take it out, crucially. Just some of the
:16:19. > :16:23.examples of things you can do in a wired home. Simon, good morning, you
:16:24. > :16:27.are a futurist here, you have been showing me all sorts of things, this
:16:28. > :16:38.looks a little bit more day to day, rather than some of the high tech
:16:39. > :16:44.stuff. Shall we by a chair in augmented reality? We will select
:16:45. > :16:53.this wicker chair, and with millimetre accuracy, it is now going
:16:54. > :16:58.to PA on the floor, OK? I can adjust the position, rotated, then I take a
:16:59. > :17:01.photo, click, share that photograph on my social networks and ask my
:17:02. > :17:08.friends whether I should buy it or not. Really interesting stuff, the
:17:09. > :17:13.technology is an increasingly big part of our lives, and it is
:17:14. > :17:16.changing the way that brands sell to us. Traditionally they would have
:17:17. > :17:20.used billboards, radio and television, but now they know we
:17:21. > :17:23.bought a shirt last week and you will need a pair of trousers to go
:17:24. > :17:29.with it this week. More from me later.
:17:30. > :17:36.Just a quick look at the Business Live page. Business is not able to
:17:37. > :17:39.invest in staff because of increased costs.
:17:40. > :17:43.You're watching Business Live, our top story:
:17:44. > :17:46.A court in South Korea has sentenced the de facto boss of the technology
:17:47. > :17:49.giant Samsung to five years in prison after finding him guilty
:17:50. > :17:57.of paying bribes in hopes of obtaining government favours.
:17:58. > :18:08.A quick look at how the markets are faring, these are the numbers, a
:18:09. > :18:17.little bit mixed. The pound against the dollar, that is falling a little
:18:18. > :18:21.bit, just below 1.28. We are slightly on the way down, but also
:18:22. > :18:23.down against a strong euro, which is not on the screen at the moment.
:18:24. > :18:26.It's been yet another busy week in the technology world.
:18:27. > :18:28.Samsung is once again making headlines with the jailing
:18:29. > :18:33.Britain's largest retailer of smartphones,
:18:34. > :18:35.retailer Dixons Carphone, is blaming consumers' reluctance
:18:36. > :18:39.to upgrade for an unexpected profit warning.
:18:40. > :18:42.Meanwhile, the country Estonia wants to launch its own government-backed
:18:43. > :18:52.Joining us now is our technology correspondent Rory Cellan-Jones.
:18:53. > :19:02.Rory, good to see you, so which one shall we start with, Samsung? The
:19:03. > :19:09.company seems to be doing OK despite all of this? I was writing this week
:19:10. > :19:15.about the launch of its new giant phone, this time last year we were
:19:16. > :19:17.reporting on the Galaxy note 7 exploding, a terrible product
:19:18. > :19:21.recall, complete disaster, then we had the news of the bass being
:19:22. > :19:27.arrested, we have seen what happened at there, so you would have thought
:19:28. > :19:31.a terrible year. But no such story, really, it has gone from strength to
:19:32. > :19:37.strength, record profits, it made more profits in the quarter than
:19:38. > :19:40.Apple recently, which is quite some achievement. Its share prices
:19:41. > :19:46.hitting record highs. It is showing a steely determination to just carry
:19:47. > :19:53.on. It could have abandoned this Note phone altogether, it abandoned
:19:54. > :19:56.the Note 7, it could have retired the brand, but they have loyal
:19:57. > :20:02.customers who have come back, and all the signs are that this new
:20:03. > :20:07.phone will be a success. So yet again, it is Samsung versus Apple,
:20:08. > :20:12.we are back to where we were, two very strong companies battling it
:20:13. > :20:16.out. I'm fascinated about the Estonian crypto currency, I know
:20:17. > :20:22.this is terribly prejudice, but it doesn't fill me with confidence, the
:20:23. > :20:25.idea of an Estonian crypto currency. Estonia is an extraordinary little
:20:26. > :20:30.nation that has prided itself on being very advanced in all things
:20:31. > :20:33.digital, it runs its governor and very largely online, all sorts of
:20:34. > :20:41.services online, and it has got this initiative called e-residency. I am
:20:42. > :20:46.an Estonian e-resident. I have got the right to start a business
:20:47. > :20:51.remotely in Estonia. Did it cost anything? It cost 100 euros. It
:20:52. > :20:56.gives you the right to start a business remotely in Estonia, and
:20:57. > :21:01.they see it as a way of a small nation, little over a million
:21:02. > :21:12.residents, it gives it great power, they think, to advance their digital
:21:13. > :21:15.cause. And they put out a blog saying that the growth of
:21:16. > :21:19.e-residence is higher than their birth rate, and they are thinking of
:21:20. > :21:23.launching their own crypto currency. They float lots of ideas, but this
:21:24. > :21:29.is very interesting, it would be called Estcoin, it would be
:21:30. > :21:32.available to e-residence as a way of trading with all the security that a
:21:33. > :21:40.crypto currency theoretically offers. -- e-residents. But surely
:21:41. > :21:45.there is a contradiction, because crypto currencies do not have
:21:46. > :21:51.borders, no central bank, nothing to do with nations. Exactly, I have
:21:52. > :21:56.been interviewing the guy behind the scheme, and he is admitting that
:21:57. > :22:00.coming says it is time for somebody to float this idea, because central
:22:01. > :22:03.banks are going to have to get their head around the fact that people
:22:04. > :22:07.will be using these currencies, they may be using them to avoid tax, so
:22:08. > :22:13.better that we start to bring the idea within the realm of government.
:22:14. > :22:17.And another story that was really interesting is phone upgrades,
:22:18. > :22:22.people becoming a little bit more frugal, holding off upgrading just
:22:23. > :22:26.for a while, causing problems. Yeah, we heard this from Dixons Carphone
:22:27. > :22:32.this week, big profits warning, based solely on the fact that it has
:22:33. > :22:36.got a theory, it thinks people are holding off renewing their phones
:22:37. > :22:40.after two and a half years rather than two, and that six months has
:22:41. > :22:45.put a huge hole in their prospective profits. And I have got a theory as
:22:46. > :22:48.to why this is happening - two fantastic modern smartphones, they
:22:49. > :22:54.look just about identical, you probably couldn't tell which is
:22:55. > :23:01.which, and they are all incredibly capable, all incredibly expensive,
:23:02. > :23:05.pushing $1000, ?900 these days, and that is looking very expensive to
:23:06. > :23:09.people. And people are beginning to think, my current phone is great,
:23:10. > :23:14.what is this new one going to give me that is so different? They are
:23:15. > :23:19.altering off the upgrade decision. Thanks very much, really good to get
:23:20. > :23:25.your thoughts on all of that. You can come again! The phones didn't
:23:26. > :23:25.ring either, so even more welcome expect
:23:26. > :23:28.In a moment, we'll take a look through the business pages,
:23:29. > :23:31.but first here's a quick reminder of how to get in touch with us.
:23:32. > :23:33.The Business Live page is where you can stay ahead
:23:34. > :23:36.with all the breaking businesses of the day keep up to date
:23:37. > :23:39.with the latest details with insight and analysis from the BBC's team
:23:40. > :23:44.get involved on our web page, and on Twitter,
:23:45. > :23:57.Business Live, on TV and online, whenever you need to know.
:23:58. > :24:01.Nandini Ramakrishnan is joining us again.
:24:02. > :24:08.We are going to be looking at the newspapers, one particular story I
:24:09. > :24:18.want to concentrate on any financial times, oil prices. It is quite
:24:19. > :24:23.confusing, all influenced by hurricane. Usually when these risks
:24:24. > :24:28.come to oil producing countries, the price spikes, because we do not know
:24:29. > :24:34.if we will get the ground, but what is tricky about this one is that 45%
:24:35. > :24:37.of US refineries are in the area that is potentially going to be hit,
:24:38. > :24:41.and they are different from producers. When you have not got the
:24:42. > :24:46.refinery functioning, the oil producers cannot sell their oil to
:24:47. > :24:52.get refined, and that is causing the price to go down, rather than up.
:24:53. > :24:56.But it does change, I have seen that headline, but also this headline
:24:57. > :25:00.from the Financial Times saying that prices are going to rise. At the
:25:01. > :25:03.moment, the other thing about Hurricane Harvey is that they did
:25:04. > :25:08.not get warned about it until quite late in the day. More importantly,
:25:09. > :25:13.that is tricky, but for market it is hard to price this, the refinery
:25:14. > :25:17.versus produce a fact, as well as the lack of warning. It highlights
:25:18. > :25:29.the changing influence that groups like Opec have, but sometimes it is
:25:30. > :25:33.far? Events. Yes, far beyond their control, and when you think how
:25:34. > :25:37.important oil prices are, affecting inflation and emerging markets, a
:25:38. > :25:43.lot can be paid off a global move like this.
:25:44. > :25:46.There will be more business news throughout the day on
:25:47. > :25:53.the BBC Live web page and on World Business Report.
:25:54. > :25:58.From us, have a wonderful weekend, we'll see you again soon, bye-bye.