tv BBC Business Live BBC News May 31, 2017 8:30am-9:01am BST
this is business live from bbc news with ben thompson and susannah streeter. retaining its crown, india is on track to remain the fastest—growing economy in the world. why from london, it's our top story today on wednesday the 31st of may. india removed nearly 80% of bank notes from circulation but it hasn't so notes from circulation but it hasn't so far dented growth. we'll explain what happened and get the latest figures from the indian government a little later today. one leading charity says half of all gamers have been harassed or received threats. markets are looking like this. the pound has
fallen sharply after fears that the conservatives might not get the majority in the general election that many are thinking may happen. hi claire castle may be better known as the filming location for down to gnabry but it's also home to europe's most successful horse racing ownership company. we'll get the inside track with harry herbert. and it's been revealed the bank of england's staff have been studying dr seuss to brush up on communication skills because he has been described as a master of using simple language. with like to know what business language you think would benefit from the dr seuss treatment. we promise no jargon here on
business live. india has retained its crown as the fastest growing major economy in the world. economists are predicting indian economy grew by 7.1%, that's in the first three months of this year. but would be faster than china which is currently at 6.9%. the resilience of the indian economy will be welcome news for prime minister narendra modi following the country's landmark demonetisation programme. that was when — at the end of last year — the government removed around 86% of all banknotes from circulation in a bid to crackdown on corruption. it led to widespread disruption and queues outside banks and cashpoints, but the shock announcement seems to have had limited impact on growth. and there could be more good news for the indian economy next month when consumers will see major tax reforms. from july, all purchases will fall under a single "goods and services
tax" and that's lower the average rate charged now. sameer hashmi has been following the story is in mumbaifor us. you've been witness to those huge queueing and chaos that interviewed after the banknotes were withdrawn. many are expressing surprise about these growth predictions, given how badly small businesses in particular suffered. that's right. if these figures as estimated turnout to be true it will be a bit of a surprise. the impact was huge after 86% of the notes were banned especially small and medium—sized businesses were badly hit. there are two reasons for these good numbers. now the government is using a new methodology to measure gdp. just
explain that in simple terms, industrial output, the way they were measured until now, didn't accurately capture the total picture across the country. the government says the new methodology is going to give a much clearer picture. analysts say the new methodology is more favourable when it comes to big businesses and doesn't reflect the true picture when it comes to small businesses. that's why the number that will come out today is going to be on the high side which is expected to be 7.1. this figure is also for the period ofjanuary expected to be 7.1. this figure is also for the period of january to march which is when the real impact took place. i was talking to one analyst who told me that if the government would have measured this data, how they have been doing all the while, the number wouldn't have been lower than that. most are expecting 7.1. the government says
it introduced this radical measure to try and cut down on corruption. is there a sign this has happened and what impact has there been an inward investment as a result? it's still too early to say that the whole exercise has had any real impact on corruption. the reason the government went ahead with that move was because there is a lot of unaccounted wealth in this country, which means a lot of people don't pay taxes. the government was trying to bring all those people into the banking system so they can crack those people and whether they are paying taxes or not. so far, the data the central government has, it doesn't really give us exactly how much of the money that was sucked out of the system was unaccounted wealth. the tax authorities are still trying to chase people who have declared investments, on how much amount they didn't pay the
taxes. it's still too early to say. as far as investments go, the government has taken a lot of steps but private investment is still low. public spending has been driving the economy forward. thank you for the update. let's take a look at some of the other stories making the news. the pound has fallen more than 0.5% against the dollar after a new poll found that the ruling conservative party could fall short of an overall majority in next month's general election. previous polls suggest prime minister theresa may and her conservative party would massively increase their majority. shares in online retail giant amazon have risen above the $1,000 mark for the first time. back in 1997, the firm listed its shares forjust $18 each. the rise in share price now values amazon at $478 billion, more than twice that of wal—mart. amazon is now the fourth—largest us company, behind apple, google and microsoft. uber has fired the engineer accused of stealing secrets from google's parent company alphabet
after he failed to assist with an investigation. anthony levandowski, previously worked on self—driving car technology at waymo, owned by alphabet. he is accused of downloading 111,000 confidential files before leaving the company in 2016. uber denies it is using stolen technology. manchester united is the most valuable football club in europe, valued at $3.3 billion. according to figures from kpmg it puts it ahead of spanish giants real madrid and barcelona. the study looked at broadcasting rights, profitability, popularity, sporting potential and stadium ownership. in the study of 32 teams, english clubs dominate, filling six top ten places. if you're buttering your toes this
morning or making your sandwiches, butter consumption is rising sharply. the cost rising 40% because wholesale prices are up more than 80%. that's because of global demand for butter. everybody loves the yellow stuff around the world. i like the quote, "i think the move back to butter is only going to grow" an investigation has been launched into the leak of details of a new bank levy, which led to sharp falls in the shares of australia's biggest banks. hywel griffith is in sydney. tell us more about this leak and the bank levy. it all goes back three weeks ago and the budget in australia, with a surprise announcement of a levy on the big banks. a surprise but not completely unheralded. in the 2a hours before the budget, they started to circulate, it was reported the night before and the morning off in different media. it seems that led
toa different media. it seems that led to a big sell—off in shares of the four big banks. regulators say they wa nt to four big banks. regulators say they want to check whether there was any short selling and they want to know the provenance of the leak, how this information reached the media before the treasurer stood on his seat in parliament. the chair of the committee saying, we will hunt this down, trying to make sure no one has profited from having this information before it was made public. the levy is still controversial, the banks still trying to fight it off. thank you for staying across that for us in sydney. shares injapan down slightly on wednesday following that weaker lead from the us and falling oil prices dragging down the mining sector. we'll talk about that more in a moment. but the story has been that fall in the pound after a new poll showed minister theresa and the ruling conservative party in the uk risks falling short of an overall majority in next month's national election.
the vote in britain, political uncertainties in italy and doubts over debt relief for greece all weighing on the minds of investors. some all of that up for you. more on that in a moment, but first let's head stateside and samira has the details about what's ahead on wall street. happening on wednesday, the federal reserve, that is america's central bank, will be issuing its facebook. this is a collection of anecdotes on the help of the economy that is taken from the central bank sources across the country. it will likely show the us economy is continuing to gain strength, as the central bank prepares to raise interest rates again, possibly as soon as the next meeting which happens injust a couple of weeks. in earnings news, you would think that cyber security
firm would be doing pretty well these days especially in the wake of so many ra nsomwa re these days especially in the wake of so many ransomware attacks. but the firm palo alto networks is expected to report a fall in profits when it reports on wednesday. the company has faced rising competition in a hotly contested industry and is struggling with issues with its sales force. maike currie, investment director at fidelity international. we are talking about the market movements in more detail. it seems as though its political concerns that are driving market sentiment, particularly when you see how sterling is performing. absolutely. the election was expected to be a blip on the radar. the result was going to be a foregone conclusion, theresa may was going to increase her majority in parliament and that would enhance her brexit—lite go shooting hand. now that seems to have changed, and it's weighing on the currency. now the pound is much
wea ker the currency. now the pound is much weaker which is good news for the ftse 100. weaker which is good news for the ftse100. it's a stock market of overseas owners and if the pound wea ke ns overseas owners and if the pound weakens that's good for those overseas exporters. this is only one poll saying there could potentially bea poll saying there could potentially be a hung parliament. how much confidence should investors have in polls given what has happened in previous elections? the polls do get it wrong and of course, betting on currencies is a zero sum game. while a weaker pound is good news for the ftse 100, a weaker pound is good news for the ftse100, it's bad news for the ftse 250, the stock market of medium—sized companies that optimistically focused. the best thing investors can do is ignore the short—term noise. thing investors can do is ignore the short-term noise. quickly, what happens if she doesn't get the big majority, what does it mean for brexit? it means that we could have a hung parliament and that means that the whole brexit negotiating process , that the whole brexit negotiating process, which is already clouded by uncertainty becomes more uncertain.
that will weigh on markets. markets height and macro hate uncertainty and brexit is a huge unknown. still to come, racing ahead. we meet the man behind one of europe's most successful horse racing companies and askjust how you buy a stake in a race horse. you're with business live from bbc news. we're all feeling a bit more confident about the future, but still worried about the economy, according to the latest data. research says rising inflation is proving a worry for many households. joe staton is head of market dynamics at gfk. you carried out this survey and people are still feeling quite optimistic. do you think that is justified? it is interesting, we
have done this survey since the 70s, on behalf of the eu so we have a long track record on what consumers are feeling and behaving will stop this is a consumer what we think and feel, not mark carney, angela merkel telling us what to think and feel and what is interesting there is still a lot of confidence. your last presenter talked about uncertainty, in the face of uncertainty, there is a high degree of consumer confidence in the data we are reporting. should we be surprised by uncertainty because there are so many things going on at the moment it is hard to know which way the economy is headed. how do you navigate that?” think what is going on, there is ha rd think what is going on, there is hard data, gdp data, and soft data, such as the consumer confidence survey we run. what is going on is the two are matching. we see a level
of confidence. it is just bumping along the negative. after brexit we saw it dropped dramatically, minus 12. the lowest it has been is the low 30s, during the beginning of the last financial cycle. consumer confidence is depressed but stable. notjumping confidence is depressed but stable. not jumping around as confidence is depressed but stable. notjumping around as one might expect. 0k. thanks for the update on the consumer confidence survey. it seems we are generally not optimistic but not getting more pessimistic. perhaps because we have some quite good numbers as far as exports are concerned. excuse the picture. this is salmon. one of the things we sell around the world. the first three months of the year. exports are up by 8.3%, £4.9 billion, that is the largest
first—quarter figure billion, that is the largest first—quarterfigure on billion, that is the largest first—quarter figure on record so good news as far as exports from the uk are concerned. details on the website. you're watching business live — our top story — official figures are expected to show that india has retained its crown as the fastest growing major economy in the world. economists are predicting that india's economy grew by 7.1% in the first three months of the year. we will get those figures later. this is what europe is doing at this point in the morning. sterling down against the dollar after a poll that suggests theresa may might not get the majority expected. but it is one poll and they have been wrong in the past. now, you might enjoy a flutter on the horses from time to time. maybe at the grand national, or the derby. but what about if you owned a stake not in a race — but in the racehorse itself. well, our next guest knows a thing or two about doing just that. he's the founder and boss
of highclere thoroughbred racing. it's one of europe's most successful horse racing ownership companies. it was founded in 1992 — and since then has produced seven european champions. and when the horses do well, so do the owners. it's raked in nearly $8.5 million in prize money. harry herbert — the boss and founder of highclere — joins me now. hello. who buys stake in a racehorse? just how expensive is it?. as long as you can afford it, it?. as long as you can afford it, it is how long is a piece of string? shares go from £5,000 to up to £50,000 depending on which syndicate to come into but you can get involved for a few hundred pounds in a racing club. owning a part of a racehorse is exciting and generates a buzz. i worked
racehorse is exciting and generates a buzz. iworked in racehorse is exciting and generates a buzz. i worked in kentucky in the state said it was just starting there in the 80s. ownership and racing of horses becoming more expensive, so their hat to be a better way to do it and ideally a way that would not take away the excitement of owning through fractional ownership done well and with really good management and using the best trainers. that you could come up with a concept that would make it fun. and he would not have to spend a fortune. do you do it as an investor for the love all the money? the laugh. this is not an investment —— the love of it. if you are lucky enough to get a really good racehorse and we have been fortu nate good racehorse and we have been fortunate with a few champions and other good horses, they are worth an enormous sum of money. the horse who
won the derby was bought for 75,000 unsold for millions. it is possible but you do not come into a syndicate and thing, i am just going to have dobbin. what is the relationship like, do they become friends, do they fall at? we treat everybody as if they own the horse out right. the amazing thing is you can put the most abstract group of people together and the horse, it is the glue that binds everyone together. naturally people say i won't know anyone, it might feel like i own the horse but it is the opposite. you see people who would never meet in everyday life having the best time imaginable. and they trot into the winner's enclosure together?
you talk about the highs and lows but yourjob involves tears. job satisfaction of seeing may be a ftse 100 company chairman, chairwoman, big is this person, in floods of tea rs big is this person, in floods of tears when a horse wins. it brings out an emotion that is completely alien to most people. it is primeval, i think. alien to most people. it is primeval, ithink. it alien to most people. it is primeval, i think. it is the best pa rt primeval, i think. it is the best part of thejob. primeval, i think. it is the best part of the job. just to say, they are tears of happiness. mostly tears of happiness, there are a few tears of, oh, my god, not again! is why the queen does it, and so on. what has it been like to see how highclere castle has been transformed from when you were trying to sell cream teas to renovate the building to now a global phenomenon? it is incredible. my global phenomenon? it is incredible. my brother and sister—in—law, they
run it now and have done for sometime. i was involved and it was incredible. the transformation between hanging baskets, cream teas, to suddenly having amazing events at the castle and opening up the corporate angle. movies. tom cruise there, nicole kidman. the first cricket match south africa played was a highclere. it has been phenomenal and downton is a game changerfor phenomenal and downton is a game changer for highclere and any stately home that get something like it. thanks for coming in. best of luck. new research shows that abuse and bullying in video games is a growing problem. the anti—bullying charity ditch the label said one in two gamers it spoke to had been bullied or received threats. so what's been done to tackle it? here's our technology correspondent rory cellan—jones. for 16—year—old bailey,
video games have been a big part of his life and were once an escape when he was getting a hard time at school. he enjoys pitting his skills against other players online, but what he doesn't like is the abuse he sometimes gets while playing. he first experienced bullying in games when he was ten and it's not getting any better. if i'm playing a game and i score a goal, i've literally been told to kill myself. if you're being bullied at school, you come home and play your computer and you are just getting more abuse thrown at you. it's just going to put you off doing anything social. the charity ditch the label surveyed 2,500 young gamers. 57% said they had been subjected to hate speech in an online game. 47% had received threats and 40% had had unwanted sexual contact. what's changed over the last decade is that more and more games are played online and that means young gamers are encountering anonymous people from around the world and chatting with them. that can, of course, be very positive, but it also lays them open
for the kind of dangers we've seen elsewhere in the online world. the anti—bullying charity worked with the online game habbo hotel to research young gamers‘ experiences. and was disturbed by what it found. i think what's so shocking is the fact that it's normalised behaviour. we had gamers telling us this was just part of playing games online. bailey says he has now learned not to let abuse get to him, but he wants the games companies to do more to watch over what happens online and to act to stop the bullies. rory cellan—jones, bbc news. we can now talk through some of the stories in the business pages. we have asked people to get in touch about the story bank of england has used children's books for lessons in clarity. it is fair to say that financial sector has jargon words.”
love this story because there is so much jargon and dry language used. and it was the former deputy governor who said they studied dr seuss to see how they could use simpler language to engage the public. at a time of political populism, this is the way forward, to engage people. maybe without the tongue twisters. i am used to reading dr seuss to my children and at times it can be quite complicated. a very good point. they talk about the quarterly inflation report, it is about that thick and a challenge to get through it. it is about telling stories simply. that is so important. to get people to engage with finances, that is the only way. mobile phones. there is a proposal in london on the underground you might be able to use your mobile phone and some people around the world will find it astonishing that you cannot at the moment where in
hong kong and parts of china it is the norm. i quite like not being able to use it on the underground. it is downtime. the tube is where you see people reading a book, not senselessly browsing on their phone and playing games. there are flip sides. we should probably have technology on the tube because places like paris and tokyo have had it for years but the downtime is valuable. nobody speaks to you on the tube and if you have nothing to read, you are a bit stuck. gary says, i cannot stand business jargon. ice for redundancy. and in volu nta ry jargon. ice for redundancy. and in voluntary career event. let's get rid of that. thanks for your company today. we will see you tomorrow. good morning. it was a cold start
today across northern parts of the uk because we have had a cold front sinking south overnight. giving more cloud across southern areas this morning, keeping temperatures up to double figures. a dry day today and there will be lengthy sunny spells, feeling pleasant this afternoon with sunshine. the best of the sunshine across northern parts this morning, but in the south, cloud you saw earlier will break up and there will be bright spells of sunshine. dried for most that there could be the odd shower in wales and central and southern parts of england. further north, cloud in the afternoon. plenty of fine weather with sunny spells. and in northern ireland, and much of scotland. a dry afternoon.
temperatures feeling pleasant. tonight, there could be coastal fog around the english channel which could come onshore. the wind picking up could come onshore. the wind picking up in the north—west and with that into the early hours of thursday, rain spreading into northern ireland but not as cold as last night in northern parts. a mild start to thursday morning. during thursday, the weather front will bring rain. a cold front associated with low pressure. ahead of it, warm air coming in from the south which will make it feel humid across the south east as we go through thursday. sunshine breaking through in the south—east. fresher further north and west. rain will be with you on friday and it could be heavy in
north—western areas with thunderstorms potentially in the south—east with sunshine and real heatin south—east with sunshine and real heat in the day. further north and west, fresher. the fresher weather extends to all as we go through the weekend. there will be sunny spells, scattered showers, but temperatures up scattered showers, but temperatures up into the high teens. more details online. hello, it's wednesday, it's nine o'clock, i'm victoria derbyshire, welcome to the programme. a breast surgeon accused of playing god and carrying out unnecessary operations on patients is due to be sentenced at nottingham crown court this morning. paterson exploited me as a person for his own ends. there were hundreds of female victims. we'll be hearing from some of his other victims later. also on the programme — the latest in our election blind dates series. on the picket line with banners,