tv BBC Business Live BBC News July 5, 2019 8:30am-9:01am BST
this is business live from bbc news with ben bland and maryam moshiri. growth at a five—year low, unemployment at a as—year high. so what can india's the new finance minister do to shake—up the country's vast economy? live from london, that's our top story on friday 5th july. india's finance minister nirmala sitharaman has unveiled her budget for the year ahead — and has promised planned structural reforms to kick—start foreign and domestic investment. plus — from online book store to trillion dollar tech giant — amazon turns 25 today.
we take a look at how it changed the world. and we'll be getting the inside track on the past week in business — with events in asia taking centre stage from the 620 meeting in japan to the protests in hong kong. and, amazon may be celebrating its birthday, but today we want to know whether you think the online retail giant been a force for good or not in the retail sector? let us know — just use the hashtag bbcbizlive. hello and welcome to business live. we start in india, on a huge day for this woman — finance minister nirmala sitharaman. she's the first woman to run india's finances since indira ghandi almost half a century ago.
we've been finding out how she plans to reinvigorate one of the world's biggest economies, as she delivers the first budget of narendra modi's new government, following his landslide election victory a month ago. and there are some big challenges. india's jobless rate hit 6.1% in 2018 - the highest in 45 years. that means 30 million people looking for work and awkward questions for a prime minister who promised to create millions of newjobs. the rate of economic growth slipped again last year to 6.8% — the weakest in five years. and in the first three months of this year it has fallen further. our india business reporter joe miller is in delhi for us. what has she announced so far? well,
nirmala sitharaman is still standing and giving her speech almost two hours after she first stood up in the indian parliament. the first pa rt the indian parliament. the first part of her speech was talking up the indian economy, which is facing some headwinds. crucially, she said india is on track to be a $3 trillion economy this year. that would put it on the path to be a $5 trillion economy over the next five yea rs trillion economy over the next five years which is modie's target. she promised water to all villages in india, more money for roads, rail infrastructure. she wants indian institutions to be in the world top institutions to be in the world top institutions and she wants to start a programme to bring the foreign stu d e nts to a programme to bring the foreign students to study here rather than stu d e nts students to study here rather than students going abroad. also there
was money for start—ups to provide promotion for india's start—ups and she promised to look at the tax regime because many start—ups have been complaining about it. she is focusing on almost every sector of the economy with something for everyone. let's try to ask you another one because i can see the line is patchy on what looks like a very rainy and damp day in delhi. how has what she is saying and what she is proposing been received? there has been a rather muted reaction on the stock market initially. but of course the details are yet to come. this beach is an overarching view of the government's priorities, not about the molecular detail of the changes she is proposing full cup ——. but for international watchers of this budget there has been some good news. the finance minister mentioned
she would open up other departments in india and other sectors in india tim farron investment including aviation, including retail and insurance. many sectors in india face big restrictions to outside investment and that is one of the beef donald trump and washington had with india in recent times. that will be very welcome news to international investors and those watching from abroad. it will indeed. joe miller, thank you very much indeed. the line not doing exactly what it should do, butjoe did. we got there in the end. let's take a look at some of the other stories making the news... malaysian authorities have charged one of the producers of the movie ‘wolf of wall street‘ with money laundering. riza aziz is charged with misappropriating $248 million linked to state fund imdb. he's the latest prominent figure to be caught up in a financial scandal surrounding the fund. south korean business groups and activists are calling
for a boycott of japanese goods. it's in response to japanese restrictions on the export of high—tech material to south korea. it's feared an escalation could disrupt global supplies of memory chips and smartphones. borisjohnson, the leading candidate to replace theresa may as british prime minister, says the government has to find a way to boost taxes on global technology giants. he said current rates of tax on firms like facebook, amazon, netflix and google are unfairly low. he's competing against foreign secretaryjeremy hunt to become the next british leader. electronics giant samsung estimates that its profits slumped 56 per cent that its profits slumped 56% in the three months to the end ofjune — to $5.6 billion. but the results were not as bad as expected. hyung eun kim is in seoul. tell us more about what these figures reveal? well, like you said
it is within the range of what a nalysts it is within the range of what a na lysts ha d it is within the range of what analysts had been predicting. the slightly higher. also it is higher than the first quarter when the performance was one of the lowest, actually the worst in two years. things have been looking quite bad for samsung, especially the semiconductor business because of us campaign againstfar semiconductor business because of us campaign against far away. there has been oversupplied, falling prices. so things have been looking bad. —— huawei. some have said samsung is like a collateral damage from this trade row between seoul and washington and there is a depend factor people did not expect. some save their recovery will pick up in the second part of the year but now uncertainty has grown. thanks very much indeed. most asian markets hovered near two month highs — but trade was subdued friday as investors waited for the release of a crucial us jobs report that
could have a major bearing on the size of an expected federal reserve interest rate cut. with uncertainty over the china—us trade row put aside for now, this week has been dominated by speculation about the us central bank's plans to address a weakening economic outlook, both at home and globally. oil prices struggle. adding to the soft trading environment was the lack of a lead from wall street, which was closed for the independence day celebrations. oil prices edged down as traders fret over the impact of weak global growth on demand, which is overshadowing this week's agreement by opec and russia to extend their output caps. jeremy thomson—cook, founder, complete currency consulting is with me. good to have you on the programme. let's talk about the week that has been because it has been a funny
week on the markets because america has had a public holiday and we are heading towards the summer. what is the mood light for investors? heading towards the summer. what is the mood light for investor57m heading towards the summer. what is the mood light for investors? it is balanced at the moment. look at equity prices and what is happening in bonds and yields particularly in europe. there is a balance of optimism with equities but also fear and the prospects of further losses in bonds moving forward. this is all balanced around the prospects of an interest rate cut by the federal reserve. are we waiting for the federal reserve to say we need to start cutting interest rates because the us economy is slowing, the global economy is slowing and the impact of the trade row is continuing to be felled? investors are sat and are waiting for a direction to move in. concerns around the us china trade row have subsided a little bit. we had the agreement from opec to extend the output caps. but oil is down today, what is going on? i would say a
little bit of profit—taking in oil. we have seen in the past couple of weeks, a lot of ructions around what could possibly happen is the global economy continuing to slip? people have been moving into what we classify as saisai zheng —— safe haven assets. gold and that kind of level. a little bit move away from that as we have seen more optimistic news, equities have come back in that christine lagarde could take over at the ecb. the big thing eve ryo ne over at the ecb. the big thing everyone is looking at, jobs figures from the us? anything north of 180,000 jobs added in the past month and that will continue this kind of frothy feeling. benefit frothy? it is at the moment. less than 120 and
people will be thinking the federal reserve will be worried aboutjust how slow the us economy really is becoming. but it's not going to be watched too much, it was independence day yesterday. everyone getting over their barbecues. people will be checking on their phones, 160 as we expected, so back to their celebrations. come back in a few minutes to talk through the paper stories, including amazon celebrating its 25th birthday. still to come... we'll be getting the inside track on the past week in business, with events in asia taking centre stage — from the g20 meeting in japan to the protests in hong kong. you're with business live from bbc news. it's pride in london this weekend — and as at pride festivals around the world, it seems that more and more companies are proudly displaying their support for lgbt rights.
there's been everything from rainbow—striped logos to the release of pride—worthy clothing ranges and sponsored blimps over marches. katie silver has been finding out if it's a sign of inclusivity, or just an attempt to profiteer. here we are in oxford circus in central london and you cannot go half a block without seeing some business displaying some form of rainbow. we can see three with their love is good. across the street in john lewis, they have proud to celebrate pride. and there are some finishing touches going on this rainbow display. topshop has painted the entire world with rainbow coloured dots. rainbow flag, rainbow on your back, what do you make of companies who are putting up rainbow displays? basically, it is good companies and brands are supporting
about lg bt rights. companies and brands are supporting about lgbt rights. but it is important they give back. about lgbt rights. but it is important they give backm about lgbt rights. but it is important they give back. it is a good thing, it is spreading awareness even further. it can be seen as a awareness even further. it can be seen as a negative thing if the lg btq seen as a negative thing if the lgbtq members think they are like not using it appropriately, because they are using it for money and not wanting to spread awareness. on the whole it is good. theyjust need to probe the brand is a bit harder on what they do beyond the shop front. there is zero transparency as to what it actually means. it maybe thatis what it actually means. it maybe that is by design. because are they investing any money or doing anything? no one really knows. but it looks good. now, let's go to the business live page.
the unite union says jack daily—macro jaguar land rover‘s decision to build electric cars in the uk is a great move. they will work as 37 hour four day shift pattern. more online. your‘re watching business live — our top story... india's the new finance minister has delivererd her first budget and has promised structural reforms to kick—start foreign and domestic investment. a quick look at how the markets are faring... subdued trading. no news from wall street because of the independence day holiday. the frankfurt dax, not as bad as the london ftse. all of
them in negative territory. i could do with a nice bank holiday here. it is august for the uk. but it is that we can. quite, it is. it's been another hectic week in business news, with events in asia taking centre stage. of course protests in hong kong have dominated the headlines and the g20 meeting in japan featured some of the biggest players in the global economy. south korea and japan are on the brink of a trade dispute which could disrupt the global supply of memory chips. 0ur asia business correspondent has been following all of these event. 0ur asia business correspondent, karishma vaswani, is in singapore for us. hong kong quiet now after the protest? i know we spoke earlier in the week when you were there on the ground, what is your sense of how this is affecting the economy?‘ ground, what is your sense of how this is affecting the economy? a lot of the people i spoke to a head of those protests, they were worried in the business community about the extradition bill, which is precisely
what the protests were about. it would have allowed, had it gone through, it would have allowed people in hong kong to be extradited to mainland china and face the courts there. one of the laws of hong kong is the international rule of law is independent of china. it was very worrying for the business community had this bill gone through. but the government suspended it. that was a big relief, but then we had these protests, images of the legislative council damaged and shattered glass and windows, thousands of protesters ramming those doors with shopping ca rts ramming those doors with shopping carts and all sorts of things. really worrying for the business community. i think they are watching that very, very closely. they have a look back at the occupy protests of a couple of years ago, 79 days of protest. no material impact of hong kong's economy at that time. but with the trade war and bow, these
demonstrations, it is looking very precarious for people in the business community, they are quite worried. i know you are very much a roving reporter, all over the region and he went tojapan... roving reporter, all over the region and he went to japan...|j roving reporter, all over the region and he went to japan. .. i try! but you succeed, you are everywhere all the time, which is why we love you. you were in japan the time, which is why we love you. you were injapan for the de 20 and there was a truce between the us and president xi. when that trade truce came out it was interesting. we were all expecting something like that, it was highly signalled to the markets that president xi and president trump will sit down face—to—face and find some way out of this. so a chinese state media came out, and they were the first ones to start talking about the truth, they said we have come to an
understanding, start talking again and no terrace. we thought 0k, we can buy this, it sounds sensible. then president trump come out and said the same thing. but he also said the same thing. but he also said that huawei could also stop buying technology from american firms. frankly, not many were expecting this because a few weeks ago the us commerce department put far way on this entity list which meant american companies needed to getan meant american companies needed to get an export licence to sell to them. so a lot of people taken by surprise, but even after that a lot of confusion over what that means? president trump had to answer three questions in a press conference, was huawei taken off the entity list? he said it isn't entirely like that and details will become clear in the days to come. we are still waiting for those details. in the meantime, against this rather confusing backdrop, the two sides are supposed to sit down and start talking again.
a trade truce, is a parity thing and we don't have any more terrace but no real clarity as to what happens to huawei as yet. as one trade war eases and cools a little bit, another one appears to be brewing between japan and another one appears to be brewing betweenjapan and south korea, what is happening with that? you have got to think, tariffs are all the rage these days, it is the fashionable things to do if a country annoys you politically. what do you do, take a leaf out of perhaps the united states' playbook and slap sanctions or tariffs on them. not entirely fair but that is what we are seeing injapan and korea. japan have put export restrictions on high—tech products to south korean manufacturers. that makes it very challenging for companies in south korea to get their hands on high—tech, japanese goods. so this affects their memory chips, semiconductors, smartphone sales and
it's not just career that semiconductors, smartphone sales and it's notjust career that gets affected, it is the rest of us because we buy the stuff. if korea doesn't get this kind of tech it needs and it cannot make these products, it makes it harderfor us to get those products. all this over political dispute raging back to the second world war and it doesn't look like it's going to end anytime soon with south korea now saying they should boycott japanese goods. with south korea now saying they should boycottjapanese goods. so trade was all over the region, which means i am going to be kept very busy. you are, but surely you can get the bosses to send you to london so you can come for a coffee with us? hopefully they are watching at 8:30am. you are buying. what? maybe not. thank you so much. 25 years ago was it? you are not even born then where are you? maybe not. 25 years ago todayjeff bezos set up a small company selling books
online via a dial—up modem. at the time fewer than 0.5% of people in the world had internet access. today, a quarter of a century on, amazon has a stock market value of close to a trillion dollars — making mr bezos is the richest person on the planet. michelle fleury has more from new york. it seems that everyone these days is an amazon customer, so i've come here to put it to the test. hello, ladies. quick question, are you guys amazon customers? yes. yeah, big time. i don't like to go to the store any more. i buy everything online. i think that i do shop more because of amazon. what do you use amazon for? to buy gifts. toys for my son. every day? every day, i'm on there everyday looking for deals. amazon! jeff bezos found the paperwork to create amazon 25 years ago. his genius was to recognise the potential of the internet long before others. for more, i turned to alexa,
amazon's voice assistant. alexa, what is amazon? amazon.com incorporated is an american multinational technology company that focuses on e—commerce, cloud computing, digital streaming and artificial intelligence. amazon is known for its disruption of well—established industries through technological innovation and mass scale. but its dominance is problematic, its growth has displaced more laid—back retailjobs and its faced criticism over worker conditions at its warehouses. it's not a good look for amazon or any of these companies where efficiency is so prized, the kind of human caught up in the network you know, ends up having a really challenging time. 0ne decision it may come to regret, its failure to place a second headquarters in new york. the acrimonious split with america's biggest city points to a future in which governments are less friendly towards amazon. alexa, is amazon good or evil?
i like amazon. without amazon, i wouldn't exist. michelle fleury, bbc news, in new york. when amazon first started, it was great for the internet age but now it isa great for the internet age but now it is a monster with too much power. sarah says, good and bad, more needs to be done if they keep growing. peter makes a good point and says it's terrible for the environment with thousands upon thousands delivering single parcels to houses day in, day out. there should be a minimum order of five parcels before you get delivery to cut the mileage, fuel and c02. surprised people are
not protesting. michael says, excellent for the consumer, next—day delivery but not so good for bricks and mortar retailers and shopping areas. let's bring injeremy retailers and shopping areas. let's bring in jeremy thomson retailers and shopping areas. let's bring injeremy thomson cook. 25 yea rs, started bring injeremy thomson cook. 25 years, started from a small business selling books but now look at it. yes, you can buy anything on amazon now and get it shipped to you in the uk and the us. if it's not that the next day you can get it in a couple of days to land on your doorstep. the question as to whether it has been good or bad? it has changed retail irrevocably. you don't go back from amazon, you don't go back on the internet finding anything you wa nt on the internet finding anything you want and having it from china or the united states across the borders and into your home. the key will be with amazon, the trade was at the moment, how much internet commerce and e—commerce changes because of higher tariffs, import and export bans. whatever may happen because we as
consumers have got used to looking on our phone and saying yes, i will have enough. it's notjust online retail, web hosting, cloud services and the thing everyone got excited about was when they opened a physical book store. imagine that? where you can go and see the books in real life! the whole circle has been filled. they bought whole foods, the supermarket last year of the year before in the united states. every pa rt the year before in the united states. every part of your life and this is the battle between amazon, google, apple will be whether you run your life via one of these companies, whether you use the alexa assistant, google home or apple home software, the buy from whole foods, whether google buys another supermarket as well and everything is run by these internet bohemians. you can have your life online the moment and amazon is one of those. jeremy, lovely to have you on the programme. can i order you about
like alexa. close the programme please. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. hello there. yesterday brought a real contrast in conditions across the uk. a bit of a north—south split with the best of the dry, bright weather and the warmth in the south. we saw 27 celsius recorded in london with plenty of blue skies. head further north and cloud and more in the way of mist and fog. this photo was sent in and the temperatures in the low, double figures. through the day we have a north—south split again and cloudy skies further north and the best of the dry, fine weather for central and southern england and wales. here it will be dry and it's looking warm again with temperatures in the mid 20s. we
could see 27, 20 eight celsius in london, 2a celsius in birmingham. we see more in the way of cloud as we head further north and the best of any breaks in that cloud in the north—east of england. some breaks perhaps for eastern scotland as well but we do have outbreaks of rain across scotland. heaviest and most persistent in the north and west. temperature sitting in the mid to high teens across scotland. as we go through this evening and overnight, we will see the cloud and patchy outbreaks of rain gradually shift their way south. behind it, seeing something drier with clear spells developing across scotland and the cloud and patchy outbreaks of rain gradually shift their way south. behind it, seeing something drier with clear spells developing across scotla nd with clear spells developing across scotland and ahead of that, we will see it staying dry with clear skies as well. temperatures overnight, falling to an overnight low of eight to 15 celsius. that cloud and patchy rain is courtesy of this cold front which is gradually working its way south through tonight and into tomorrow. by the time it gets into the south, i don't expect it will have that much in the way of
rainfall. the rainfall fairly light and patchy. early brightness across southern england first thing and then the cloud will shift south as then the cloud will shift south as the day wears on. bring with it patchy rain and drizzle, drier, brighter conditions feeding in from behind and they will be variable cloud and sunny spells. temperature is cooler for many but we will see 24, 20 is cooler for many but we will see 2a, 20 five celsius for southern england ahead of the cold front. this is how it's looking on sunday. sunday brings a good deal of dry weather. variable amounts of cloud, sunny spells. the cloud could be thick enough for the odd, isolated shower. temperatures at a maximum of 22 celsius.
you're watching bbc news at nine with me, annita mcveigh. —— with me, carrie gracie. the headlines: jaguar land rover pumps hundreds of millions into their west midlands plant — where a new electric car will be produced, securing thousands of jobs. downing street attempted to withhold secret intelligence from borisjohnson when theressa may made him foreign secretary. five former police chiefs warn that the public has lost confidence in the police — and drug and knife crime have created a feeling that britain has descended into lawlessness. everywhere wheeler, a blank where she should be —— we look. families of the victims in the boeing ethiopia air crash demand to know why the 737 max was allowed to fly.