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tv   BBC Business Live  BBC News  July 15, 2019 8:30am-9:01am BST

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this is business live from bbc news with ben thompson and sally bundock. trade war trouble. tensions with the us begin to bite as china's economy grows at it's slowest pace in nearly 30 years. live from london, that's our top story monday the 15th ofjuly. the world's second biggest economy grew by 6.2% in the three months tojune — will it push the government in beijing to push for a trade deal with washington? also in the programme...
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delivering a blow to amazon on one of its biggest days of deals — workers in the us target prime day with a strike over pay and conditions. markets in europe have started on a positive note as we begin a busy week for corporate earnings. and the internet may make it easier than ever for firms to go global, but how do they stand out from the crowd. is it all about getting a boost in the search engine rankings? we'll speak to the founder of one firm hoping to offer small business a helping hand. after a thrilling weekend of sport with the winners taking home millions — we want to know what can be done to invest in tomorrow's champions? are elite sports off—limits for young talent if they don't have wealthy backers? let us know, we'll discuss a little later — use the #bbcbizlive.
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hello and welcome to business live. let's catch our breath after that crazy day of sport and sunday and talk through what is happening in china. it grew at its slowest pace in almost three decades in the three months to the end ofjune as it continues to feel the impact of the trade war with the us and weakening global demand. gdp growth came in at 6.2% between april and june, the weakest pace for at least 27 years — but it was in line with expectations and comes after growth of 6.6% in 2018. june marked the first full month of 25% us tariffs on $200 billion of chinese goods, after the rate was raised from 10% weeks earlier as the trade war impact deepens. figures on friday showed the impact of the increased tariffs on trade.
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exports fell 1.3% in june, while imports slumped 7.3%, on flagging domestic demand. elsewhere car sales plummeted a whopping 12.4 percent in the first half of the year — a sign that domestic demand is also slowing. the imf last month lowered its forecast for chinese growth for 2019 as a whole to 6.2%, warning that "uncertainty around trade tensions remains high and risks tilted to the downside". china's already brought forward a raft of stimulus measures to cushion the impact of its cooling economy, including tax cuts worth $297 billion and spending on roads, railways and other big—ticket infrastructure projects. today's weak numbers could raise hopes forfurther easing. joining us live from beijing is einar tangen, economic commentator and former advisor on economic affairs for the chinese government.
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welcome to the programme. you could hear some of those numbers, some of these figures giving us a sense of these figures giving us a sense of the slowdown. beijing has implemented a number of stimulus measures to give the economy a boost but it has not been enough to offset the weakness in domestic demand. sales actually wear more robust than anticipated and so was industrial production so it was a mixed bag and he also saw a rise in real estate investment and through the beginning of this year so far he had 3% increase in foreign direct investment in china and that after a record 2018. i think the chinese government and many of the markets are based on reaction which has been recovery 0 n are based on reaction which has been recovery on the asian side and slightly positive opening expected
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in new york and elsewhere. i think that people are waiting to see and things have now moved on to speculating about what will happen on the third. and of course within the numbers are hides some big differences, industrial output up and retail sales but those that we will focus on i things like infrastructure investment, a near 20% expansion from some of the figures we have more recently, now coming in at 4% painting a picture ofan coming in at 4% painting a picture of an economy that is slowing. absolutely, the pain being felt is not only in china but worldwide. almost on a two weekly basis you are seeing cuts being forecast by major economic organisations from the wto to the imf. so this is not good news for the world but ijust say to the imf. so this is not good news for the world but i just say that at
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this point china is feeling more confident that perhaps things have stabilised. we do expect more stimulus, some rate cuts and thank rate reserve cuts so they do not have to come up so that puts more money into the economy. and we expect more stimulus so i think after a bit more digestion may be positive signs in asia. after a bit more digestion may be positive signs in asialj after a bit more digestion may be positive signs in asia. i wonder where this leaves the trade dispute between the united states and china, doesn't mean it is more difficult for the chinese president to fight back against what he has seen from president trump because we know that globally the moves in the economy are having a huge impact. they are digesting this and they will look at what they've been able to achieve, they expected a fairly low gdp but they expected a fairly low gdp but the question is going into the rest of the year what happens. the chinese president now has a larger surplus with the us and that has
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actually grown so it is a situation where the us and china, it isjust influx and you do not know how each side is going to read this. this is not what the us side expected, they would have liked something more negative to show that china is feeling the pain but from the chinese side by looking at what the fed does and that could actually help china and allow them to move their rates. good to talk to you live from beijing. thank you. let's take a look at some of the other stories making the news... the uk sportwear retailer, sports direct, has upped its stake in the video games retailer game digital. it nows owns 84% of the firm as it continues to increase it's presence on the british high street. meanwhile sports direct says it will delay the publication of its latest results because of the complexity of integrating house of fraser into the business. they were due out later this week.
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american airlines has extended flight cancellations for a fourth time due to the grounding of the boeing 737 max. the world's largest carrier said more than a hundred daily flights would be grounded until november. united airlines made a similar announcement on friday saying it will take the aircraft out of its schedule through november the third, a month longer than previously planned. the chinese telecoms giant huawei is planning big job cuts in the united states according to a report in the wall streetjournal. workers at its research unit which employs 850 people are likely to be affected. it follows the us decision to blacklist huawei over security concerns. but, reports say some us companies may get licences to deal with huawei within the next two weeks after president trump said restrictions would be eased. we co nta cted we contacted huawei further response
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on those stories and their response was, no comment. india's second mission to the moon had to be halted because of a technical problem just an hour before take off. the $150m programme was due to blast off in the early hours of monday — local time — and was suppose examine the lunar surface. zoe thomas joins us now from mumbai. how big a blow is this to india's growing space industry? but just a temporary butjust a temporary delay and not the cancellation? as you say the indian space agency called it an snag and their eager to make this just a small blow, it is not going to put off any of their plans but is just a delay is the message they are trying to put out. but the mission itself is really important to india and its space programme and the prime minister has pushed the country to get more involved in the space industry to catch up with the us and china. space is a
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multi—billion—dollar potential industry and india has played a small role but is starting to pick up, it is known for doing cheaper at satellite launches and this mission would be able to help it expand its growth in that industry and play a larger role. we should keep an eye on when a actually happens. let's ta ke on when a actually happens. let's take a look at the markets. japan closed for a public holiday but elsewhere slight gains for the shanghai a big winner with text stocks and huawei. sports direct shares down by some 12% on news that it is delaying publishing its results for the psa group of course, peugeot reporting a big slump in sales in the first half because they saw deliveries to china down by some 60%. all this confirming some of the stories we already mentioned today.
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wall street next. and samira has the details of what's ahead on wall street today. several companies will be reporting second—quarter earnings this week, including the streaming service netflix, the online retailer ebay, the drugmakerjohnson & johnson and microsoft. but the first out of the gate on monday will be citigroup. now, this will be the first of the big banks to report earnings. investors will be closely watching the results from citigroup for any signs that banks are still able to grow loans and deposits in a slowing economy. they will also be looking for any signs from these particular earnings that could offer some indication on how other main banks will report later this week. joining us now is laura cooper, head of fx solutions and strategy for rbc wealth management. nice to see you. let's pick up on the theme of earnings as we are starting to get insight into
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corporate results as opposed to just the big economic headlines we have had of late. it is a crucial time 110w had of late. it is a crucial time now for earnings seasons and we want some indication of how corporations are dealing with the impact of us china trade tensions and slowing global growth. analysts are quite pessimistic, but we could potentially see back—to—back quarterly declines in terms of earnings which is the first time since mid—2017. earnings which is the first time since mid-2017. also a lot of data in the uk telling us how the economy is doing at a time when the pound is struggling and one week before we find out who our next prime minister is going to be. but brexit uncertainty is dampening the pound and we have seen it coming under pressure against the euro sold ten consecutive weeks of decline, falling about 5% which is a record run of losses was up at this stage it does not seem there's not much to spura it does not seem there's not much to spui’ a recovery it does not seem there's not much to spur a recovery in the pound because
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of these uncertainties. thanks very much for now. still to come... we speak to a company trying to help small businesses stand out from the crowd when it comes to how they look online. you're with business live from bbc news. it has been a tough start to the summer for the british high street which saw the worst june in seven years. shopping centres also attracted less visitors, although retail parks saw a marginal uptick. that's according to the british retail consortium, which says wet weather and brexit uncertainty are to blame for the decline in footfall. kyle monk is head of insight and analytics, at the british retail consortium. afamiliar a familiar story? consumers are voting with their feet and we had a
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sharp decline in foot four injune, the west in almost six years. matched by poor sales figures in may andjune matched by poor sales figures in may and june for the so real wages are up and june for the so real wages are up and employment is at a record low but consumers are holding off on those big purchases. if we look at the high street football figures, people just prefer to go online. especially when the weather is bad. there is an element of that but online sales are also decelerating. so two years ago we had double digit sales increases online but now this decline is across the market. what needs to happen to make a difference when it comes to the story, we have been speaking about this for a long time now. the first thing is a fundamental reform of business
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rates, high streets are disproportionately affected by the cost it takes to run their stories. also brexit uncertainty and consumers and retailers are unable to make the decisions they need to invest in the future. good to talk to you and thank you very much. a pretty turbulent time for the start of the summit for retailers who will be hoping that the weather improves. let's ta ke let's take a look at what we are buying. bread and cake, sales have been higher over the full year. finsbury bread makes sweet treats under a number of brands. they state revenue rose by 3% for the facebook is to face a us senate over the crypto currency. that is facing more
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hurdles. your're watching business live — our top story. that is slow growth in the chinese economy for the all part of wider concerns about the global trade war with the united states as well but also slow down in some big world economy is affecting that headline figure. now, if you run a small business, one of the biggest challenges is standing out from the crowd. small and medium sized firms make up the vast majority of firms, employing 16.3 million people in the uk alone, that's 60% of all private sector employment in the uk. but 73% of uk businesses feel they have struggled to make their business visible online and over half of small businesses feel google favours big brands over small businesses. but our next guest's company
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is helping to change that. with us now is christine telyan, co—founder and chief executive of ueni. welcome to the programme. when i read about your company this morning and had a look at what you do ijust thought you are one of so many people out there doing just this? what distinguishes us as we are working to help all small businesses get online globally. 0ur working to help all small businesses get online globally. our customers are plumbers, accountants, hairdressers, retailers and basically what they do is go until i website from any device and the a nswer website from any device and the answer a couple of questions and tell us what their business does and then a couple of days we will build a complete website that has all of the content and copy written, all the content and copy written, all the images selected. all that done for them forfree, along the images selected. all that done
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for them for free, along with search engine optimisation. for them for free, along with search engine optimisationlj for them for free, along with search engine optimisation. i was surprised how many firms are still not online, a staggering number and partly because if you are a plumber or builder or odd job man, that would not be your priority, doing the right is your priority and sorting out tax on things. so help them get online for the first time. that is right, there are many website builders out there but they leave the work to the business owner and asa the work to the business owner and as a plumber i'm not a copywriter and so we write the text for them, we select the images and what we see is over 70% of businesses that sign up is over 70% of businesses that sign up with us ultimately do get online. and you provide is for free so how do you make money? what is important here is that we are reaching a large scale businesses so now we see over 2000 businesses signing up every day and by the end of next year we aim to be at three many businesses online with us. the key we have been
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investing in is scale up of our base ata investing in is scale up of our base at a low cost and certainly tech helps us do this and from there beyond the free service of course there are paid for services that the customers can take to add additional value. it is not enoughjust customers can take to add additional value. it is not enough just to customers can take to add additional value. it is not enoughjust to have a website, to the amount you have to doa a website, to the amount you have to do a great many more things, be listed on other platforms and manage your online reputation and we help with that. how many sign up for the paid service? we've only launched this recently and we see over 5% already there, just after a few weeks. so hopeful about this and we know this will grow. 0ne weeks. so hopeful about this and we know this will grow. one thing to say is in addition to online offerings on the back of customer feedback, thousands of customers told us they want help with other things and so we now are going to be launching additional services like a web store so they can take payments and also helping with key decisions like which business bank account or
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business insurance to take. you have to sell a lot of website can you say it is low—cost but here for a basic website, paid for, it is about £10. you have to sell a lot of websites to make money. it is true but it is about the scale that we are reaching and not only in the uk, we are active in the us, in mexico, in india, spain and were launching in brazil. what we see is the potential and the growth particularly we see that in the emerging markets. what is attractive about the scale to investors is what that provides for them in terms of data, in terms of being exposed to the 3 million customers you may have in the future? it's important that we are careful now because we are not going to have third parties contacting our customers at will, it is about as providing curated services that are
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releva nt to providing curated services that are relevant to the small businesses and provide value to them. really nice to talk to you, so much to fit in the programme but good luck with this very interesting project. amazon's prime day — which starts today — is usually one of its busiest times of year for the online giant. but warehouse workers in minnesota have picked the huge sales event to strike over working conditions. it signals that even after the firm committed to paying employees at least $15 an hour last year, concerns about conditions persist. the bbc‘s michelle fleury has more from shakopee minnesota. ( a handful of workers here are planning to mark amazon prime shopping day, and annual sales event, with a strike. earlier i spoke to one of the workers to ask him what they are protesting against. were going on strike on prime date to demand safe and
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reliable jobs from amazon, the speed that we have to work out is very physically and mentally exhausting. in some cases leading to injuries. and for people not seeing the job is something that they can do long—term. and amazon are reliant on temporary workers as well and they do not have the same job security. we just want them to treat us with respect as human beings and not like machines. for most consumers you just click a button and your package arrives a couple of days later, good prices, convenience, what is the other side? i am an order picker and the merchandise on these storage pads that robot bring to my station, i have to pick an item about every eight seconds, over a ten hour day. 40 eight seconds, over a ten hour day. a0 hours a week. it is very
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fast—paced work and i've seen many people in my department having to deal with shoulder injuries, back injuries, knee injuries, after in some cases less than a year on the job. we asked amazon for a comment and they told us they already offer what the protesters are asking for. ina what the protesters are asking for. in a statement they also said, we provide great employment opportunities with excellent pay, we encourage anyone to compare our pay, benefits and workplace to other retailers and major employers in the community here and across the country. amazon may feel their workers are getting the conditions that they want here but those behind the protest disagree. last year amazon prime date made the company something like $a billion in sales, it isa something like $a billion in sales, it is a big one. now we asked you
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about the question of sport earlier and we had the most humongous sunday ever, it was nail—biting a thrilling, heart pounding. so we wa nt to thrilling, heart pounding. so we want to know what you were watching but also help we invest in the champions of tomorrow. is there enough money going to into grassroots sport. anthony has got in touch to sate local clubs get, they need to get extra money to get people into sport at schools as well as sports centres. we cannot rely on individual philanthropy. jane says raw talent still matters but increasingly athletes need to start young and have money for trainers and equipment and even a specialised diet. you cannot even go to a tennis court ina diet. you cannot even go to a tennis court in a public park now without having to pay now. martin says no
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teenagers are playing cricket now so it comes down to that thing, getting them early to find the champions on, of tomorrow. laura is back. them early to find the champions on, of tomorrow. laura is backlj them early to find the champions on, of tomorrow. laura is back. i was watching the tennis, just glued to the screen. we know that there's so much money being spent on netflix but it still faces a challenge. is going to lose its top shows, and will have to focus on creating its own original content for the friends can still be watched in the uk which is crucial for the company because about 80% of its new subscriber base is outside of the us. with netflix, they have a lot of their own content, really popular. it depends whether they have those
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big headline programmes to pull people in. thank you for your company. we will be back at the same time, same place tomorrow. good morning. a lovely start to monday across most of the uk. it is since women's day and we are supposed to stick with the weather for the next a0 days but things are due to change in the second half of the week, wet and windy weather starting to head away. that is associated with this area out in the atlantic. a bit of a cloudy start through central and eastern parts of england once again with a northerly breeze keeping things cooler. many other areas, any cloud should break up other areas, any cloud should break up and a lot of sunshine to come.
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but later on we have some isolated showers but in western areas, strong sunshine overhead and just a light breeze. temperatures still in the teams across eastern areas but that wind is easing down on what we saw through the weekend. eastern areas are through the weekend. eastern areas a re clearest through the weekend. eastern areas are clearest and coolest and temperatures may start to lift in the west. mostly just a temperatures may start to lift in the west. mostlyjust a morning rush hour will bejoined the west. mostlyjust a morning rush hour will be joined sonny. the west. mostlyjust a morning rush hour will bejoined sonny. dash will be dry and sunny. across scotland we see some showers which could be heavy or even thundery. temperatures uk wide well into the 20s for most and a warmer day across eastern and southern parts compared with what was seen over the past few days. going through into wednesday low
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pressure starting to get closer, picking up that south—westerly wind. a few showers to begin with in scotland, turning grey through the day across scotland and northern ireland, the rain more widespread to the afternoon. temperatures around 2a, 20 5 degrees in the south—east, in the teams across scotland and northern ireland. that is all your latest weather. the national and international headlines next.
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you're watching bbc news at nine with me, carrie gracie. the headlines: he's got it, england have won the world cup english cricket celebrates an astonishing victory in the world cup final at lord's. they lifted the trophy after beating new zealand with the final ball of the tournament. we did it! jofra delivered! we were brilliant! joffra delivered. he's the boy. world champions! the foreign secretary, jeremy hunt, will launch a fresh bid to stop the iran nuclear deal unravelling at an eu meeting? a sharp rebuke for president trump — he's accused of racism, after tweeting that four congresswomen should "go back" to where they came from.

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