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tv   BBC Business Live  BBC News  June 26, 2017 8:30am-9:01am BST

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this is business live from bbc news with susannah streeter and jamie robertson. the tale of takata. the biggest recall in automotive history leads to the bankruptcy courts. live from london, that's our top story on monday 26thjune. japan's auto supplier takata has had to recall more than 100 million airbags across the world. they've been linked to more than a dozen deaths globally. and forging closer business ties between the world's biggest and the world's fastest growing economies as the us president welcomes india's narendra modi to washington. and we'll be getting the inside track on waste busting. it's an unglamorous job, but cleaning up industry's mess is big business. the fair trade system
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could be under threat. let us know, do you buy fair trade goods to do good or really just to feel good? just use the hashtag bbcbizlive. hello and welcome to business live. the japanese company behind the biggest recall in car—making history has filed for bankruptcy. takata's airbags were first found to be faulty in 200a. they were used by 13 of the world's biggest car makers who have all agreed to bankruptcy proceedings in courts in both tokyo and the us. this ceo ta kata this ceo takata said this morning he would step down. worldwide more than 100 million takata airbags, which can rupture with deadly force and spray shrapnel at passengers, have been recalled. the faulty airbags have been linked to at least 17 deaths and more than 100 injuries worldwide. it's all been an expensive saga.
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$9 billion is the estimated cost according to japan's nikkei newspaper. the firm key safety systems has now bought all of takata's assets except those relating to the faulty airbags for almost $1.6 billion. we have been following the story from our asia business hub in singapore. there was a press conference today. what did takata have to say? the ceo has come under criticism for how he has handled this scandal. indeed. he is the grandson of the company's founders. as you mentioned, the first accident causing an injury happened in 2004, and the company has been accused of covering that up and not doing anything about it. it took them in fa ct a anything about it. it took them in fact a decade before the new york times reported on it, and then the
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company finally admitted full responsibility. he has been criticised repeatedly for mishandling the crisis. he promised that he would step down once the new management takes over. i think the big question among drivers who might be concerned that their cars and airbags might be affected is whether they can continue to get the replacement and ta kata they can continue to get the replacement and takata has said that despite the bankruptcy findings, customers can continue getting free replacements. takata is notjust any old firm, is it? can you give me the impact this bankruptcy has on the corporate scene, the reputation of people in japan? the company is 84 yea rs old people in japan? the company is 84 years old and it has been around for a long time. it was once known as one of the really good quality japanese product companies. 0ther
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than those airbags, they also make seat belts and child seats, for example. that is why this american company has decided to buy all the assets not related to airbags. because of the alleged cover—up and because of the way this scandal continued, if you remember they still don't know what caused the airbags to practically blow up, so that has really damaged the company's that has really damaged the compa ny‘s reputation as that has really damaged the company's reputation as well as the reputation of corporate japan, in a way. thank you very much for that update. we can now take a look at other stories making the news. italy's government is bailing out two banks in the venice region. it will cost $5.8 billion. the move comes two days after the european central bank warned that banca popolare di vicenza and veneto banca were failing or likely to fail. italy's prime minister says the rescue was needed to protect savers and ensure the good health of the country's banking system. the uk's biggest health food retailer holland & barrett is being bought by a russian billionaire for about $2.3 billion. the chain is being bought
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by l1 retail which is controlled by mikhail fridman. holland & barrett also has stores across europe and in emerging markets including the middle east, china and india. there's been another successful launch for space x in its efforts to perfect the technology behind reusable space rockets. this time it launched 10 communication satellites from california before the rocket landed on a platform at sea. the company's chief executive elon musk tweeted that its new titanium grid fins worked even better than expected. do you know what a detainee in grid finn is? do you know what a detainee in grid firm is? no! i have been trying to work it out and i have not been successful. reusable rockets. what else is happening on the bbc business live page? it is a look
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backin business live page? it is a look back in history. 20 years today since the publication of harry potter and the philosopher's stone. $7.7 billion has been made out of the books. we have two pictures of trains now. we are very excited. and hornby say they have not been offered enough. they both look very similar. the hogwarts picture there, the hogwarts express, and the hornby train. and i think you can get a hornby train that looks like the hogwarts strain. that is a boy's thing. let's move on because we want to check out what has been happening in the financial markets. lots of stories making an impact today, particularly this one. three australian employees of crown resorts have beenjailed in china for illegally promoting gambling. stephen mcdonnell is in beijing. what has happened. the chinese
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courts are nothing if not efficient. this trial began in the morning and was over by lunchtime. the head of international vip high roller operations for crown resorts received a ten month sentence. two other executives received nine—month sentences. they and 16 other staff pleaded guilty to the promotion of gambling in china. presumably they thought they were operating in a sort of grey area here but it is illegal in mainland china. the authorities didn't see the operations as 0k and they picked them all up operations as 0k and they picked them allup in operations as 0k and they picked them all up in october last year. if there is a silver lining for this australian casino operation, it is that the sentencing according to australia's consul general in shanghai, started from the time they we re shanghai, started from the time they were detained. i guess they only
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have a few more months to go. certainly their reputation will be tarnished and they will not be looking like they have been, certainly not promoting to chinese high rollers. they are trying to drag these into australian casinos and they will have to find a different way to do it from the way they have been. thank you. shares in asia have edged up with the nikkei ending in positive territory. trading generally has been slow though as some markets across the world are closed today to celebrate the end of ramadan. this is the latest. oil prices rose more than 1 percent on a weaker dollar, but another rise in us drilling activity added worries that the global supply glut will persist despite an opec—led effort to curb output. that is shale gas drilling of course. samira hussain has the details about what's ahead on wall street today. kicking off the week in a world of
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business, india's prime minister narendra modi will be in washington ona narendra modi will be in washington on a two day visit. while there, he will be meeting with president donald trump, which will be the first face—to—face meeting for the two leaders. trade, business and immigration will likely be on the agenda. jury selection for the fraud trial begins this week. the accused is best known for increasing the price of a drug from $13.50 per ta blet to price of a drug from $13.50 per tablet to $750. he is accused of securities and wire fraud stemming from two hedge fund that he founded and ran. he denies the charges. and finally a three—day auction takes place in hollywood. some of the items up for sale, the costume that leonardo dicaprio war on the film titanic and the light sabre used by luke skywalker in the star wars films. that is happening on wall street later. we can focus on europe
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110w. joining us is james hughes, chief market analyst at gkfx. let's talk about the italian banks being bailed out again. will this stop the rot or is there more to come? i don't think it will stop the rot. what we have seen here was inevitable. we did kind of know about this situation. inevitable. we did kind of know about this situationlj inevitable. we did kind of know about this situation. i thought they would get by without any bail—out. banca popolare would get by without any bail—out. banca popola re is would get by without any bail—out. banca popolare is one of those that has been struggling for a long time and the italian economy has not been performing very well. if the economy doesn't do well, it tends to filter down to the banks. the question is does it solve any problems? the problem with the whole eurozone, if you look at greece, are just kicking the can down the road? with greece we were. we bailed out banks and the entire country. in italy we have seen entire country. in italy we have seen a entire country. in italy we have seen a similar thing in terms of bailing out the banks. the lines coming from the government are that
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this helps savers and it protects the financial system. but we don't necessarily believe that it does. we have a banking stress test in europe. we know that a lot of them are europe. we know that a lot of them a re pretty europe. we know that a lot of them are pretty much prjobs. europe. we know that a lot of them are pretty much pr jobs. stress tests are all about building up a financial buffer for a crisis ahead. have the banks really done that to that extent? if that was the case, these two banks would not need cash to be bailed outwith. these two banks would not need cash to be bailed out with. in the uk, some of the capital reserves is pretty considerable now in the big banks. it is impressive. and the us banks. it is impressive. and the us banks and the uk banks, they both have a lot of money. but if you live at the eurozone as a whole, we say it is getting better and the economy is getting better. but when we look at the eurozone as a whole, we see germany getting better and the germany getting better and the german economy is incredibly strong. what about spain? spain is doing pretty well. much better from an incredibly low point. and france. it is not totally germany, is it? not
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totally but if you look at the finance minister of germany, he is co nsta ntly finance minister of germany, he is constantly asking the ecb to remove the stimulus that is helping them, because there are fears that the german economy will overheat. there is that imbalance, divergences across the board, and there is a fear of picking a problem down the road fear of picking a problem down the roa d a cross fear of picking a problem down the road across the eurozone which we have been doing for ten years. thank you. still to come: cleaning up after industry and its mistakes. we're talking to the boss of a firm that makes sure the legacy of business is not pollution. you're with business live from bbc news. the uk could be set for years of weak and anaemic economic growth. that's the warning from trade body the british chambers of commerce. they predict growth ofjust1.5% by 2020 whilst inflation could remain high and peak at 3.4% this year. it says the inconclusive election result has made businesses wary.
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suren thiru is the head of economics at the bcc and he joins us now. why exa ctly ? why exactly? why do you think growth will tail off because it has been pretty good up until now? what we expected the next few years is a period of more subdued growth, as you say. there is a number of reasons for that. inflation will be key for the uk economy, hurting consumers and businesses alike. it will impact on consumer spending which is a key of uk growth. what we will also see our long—term structural issues affecting the uk economy. the consumer spending tribal hurt our economy and investment has been fairly weak given the political uncertainty. and with brexit over the long—term. given the political uncertainty. and with brexit over the long-term. but there have been a lot of these forecasts before in the past. particularly forecasts about what will happen immediately post—brexit vote and they have not materialised to the extent that was forecast. we
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saw growth slowing in the first quarter of this year 20.2%. —— down to o.2%. that could be a sign. investment and inflation —— inflation is a challenge. it affects businesses because of the cost of raw materials. and it affects wage growth as well. that will impact on the growth and spend. there is some good news in there. 2017 will be good news in there. 2017 will be good for exporters. the weaker sterling is making some businesses more competitive abroad. we also seeing an improved global economic outlook. strongerfigures seeing an improved global economic outlook. stronger figures from the eurozone and other key markets, which will help to boost uk export growth the coming year. that is good. thank you very much. head of economic is at the british chambers of commerce. the co—op bank is no longerfor
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sale. this has been tweeted by dominic 0'donnell our business correspondent. we will be talking to him about it later. you're watching business live. our top story: the japanese airbag and car parts manufacturer has filed for bankruptcy. a quick look at how markets are faring. europe's major stock indices have advanced on opening following a similar path to stocks in asia which edged up earlier. oil prices have also risen, but another spike in us drilling activity stoked worries that a global supply glut will persist. now let's get the inside track on a subject we don't touch on much, but matters a lot — water treatment.
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many industrial projects cause pollution. 0ften it's after an accident such as an oil leak. but who cleans up the mess? our next company does just that — from mopping up oil in the med to keeping 2022 qatar world cup projects clean. dr richard coulton founded siltbuster in 2003. it's a relatively small firm, employing 55 staff, based in wales, and turning over $13.5 million. while the uk is a key market, it also exports to 32 countries. with some high—profile jobs including the uk's olympic park, clearing up spilt oil in the mediterranean sea when the stricken costa concordia was raised and keeping pollution at bay for the 2022 qatar world cup. well, of course, i'm pleased to say in our latest of the ceo secret theories, the boss is here. good morning. tell us how the business
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began. business began around about 2000 when i was involved in treating some contaminated water from mine water discharges and a colleague askedif water discharges and a colleague asked if i could do the same for the construction industry and i realised that construction companies want equipment to hire and not buy,. so you're a hire shop really? we have got a lot of engineers and equipment. probably over 300 pieces of equipment. what we do is put together short—term treatment solutions. it is like lego bricks for water treatment. today we might have a red and a green, and tomorrow, it might be a yellow and purple. so we provide the know how and the equipment to the companies to solve their problem. talking about the costa concordia disaster. yes. how did you minimise pollution there? halfs the pollution. they had
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to drill 30 big holes into the rock and in doing that, they grind the rock up and that causes a lot of pollution, very fine rock particles which can blocks the gills of fish and smother the sea bed and kill off aquatic life. part of our role was to ta ke aquatic life. part of our role was to take that water from the drilling operation and remove the fine rock particles so that the water could be put in the sea. where was the equipment? on a barge. where do you put the mess? the mess was actually dewatered and ta ken put the mess? the mess was actually dewatered and taken away to a landfill. as rock powder. how quickly can you set—up the business? and move the water treatment plants? and move the water treatment plants? a matter of days really. we did a large food factory. we got to site within three days and that was for europe's largest food factory. what you are doing, everybody, it is one company's you are doing, everybody, it is one compa ny‘s bad news you are doing, everybody, it is one
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company's bad news is your good news. in a way, you are an ambulance chaser, that's a very rude way of saying it, but you are chasing after problems. what i want to point out, because you're doing that, surely you can charge what you like because these people are panicking? we're not that clever! we basically charged fixed rates for whether it isa charged fixed rates for whether it is a short—term or long—term hire. aren't you tempted when someone has a disaster and they may get prosecute? the temptation but people know what market price is and to keep life simple we have a fixed flat rate. the sales guys can go to an inquiry and they know what we're going to charge and they can come away with positive feedback. do you rely on companies polluting for your business to expand ? rely on companies polluting for your business to expand? we rely on preventing companies from polluting
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polluting. as the recent legislation and court cases show that companies are now more aware of their environmental responsibility and as such, are relying more on us to help them when they have got a short—term problem. thank you very much indeed for coming in. now for the latest in our ceo secrets series where business leaders share their words of wisdom. whitney wolfe launched dating app bumble to put women in the driving seat. yes, on bumble, only women can initiate conversations. she's also a co—founder of the better known dating app tinder. so what advice does she wish was given when she started up? the one piece of advice i wish i had when i started out would be to not take yourself too seriously. never neglect the things that matter most in life
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which is yourfriends, your family, your health. i think work is amazing and finding success is very rewarding, but there's no reward in the end if you neglected the things that matter the most. so it's incredibly important, regardless of how tired or busy or overloaded you are in your day—to—day, you must take time to call your grandparents or call an old friend or take an afternoon off to spend time with your parents if you're so lucky to have these people around you still. remember to stay grounded and to remain humble and grateful. without those values, you have nothing in the end. dominic 0'connell is here. we were looking at your tweet earlier about the co—op bank. that's good news today. the co-op bank has
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beenin good news today. the co-op bank has been in trouble since the financial crisis. the co—op itself got into trouble in 2008, 2009. it put itself for sale, but now the sale has been called off because it is in talks about its existing investors. it is amusing the co—op has been saved by what people think might not be ethical traders. 0ne what people think might not be ethical traders. one is the future of the pension and what's going to determine this and who takes responsibility for which bit of the pension, whether the co—op group does or the reinvested bank takes responsibility and the second is that the co—op bank will retain its ethical trading standards which is one thing that people were looking at. it is a good news story. it should be. if they hadn't sold it the bank of england made it clear that they would run co—op bank down. it lives to fight another day. another story making the papers is the forecast of an announcement that
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the forecast of an announcement that the eu will take action against google and issue a big fine. will that add to transatlantic tensions. it is expected on wednesday morning and google will be fined they think about 1 and google will be fined they think about1 billion and google will be fined they think about 1 billion euros. and google will be fined they think about1 billion euros. there has been a long running investigation and it is not a surprise and it is about how google uses its search engine to promote its own shopping comparison site. you go online and look for something to buy and you get the google price comparison service up first. why do you say it's what a modern trade war looks like? because the trade wars used to be finding each others manufacturers, now it is about competition law and the restraint of internet trade which in the past has been very, very difficult to get a hold of. it is a re—run. these two sides have a lot of history when microsoft bundled internet explorer. about what the fight with apple? that's a tax fight. this is about
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competition law. there are three on going investigations into google, not just this going investigations into google, notjust this one. this is a non tariff barrier. the americans say this is europe finding non tariff ways to restrict. it is sour grapes because europe doesn't have silicon valley. let's move on to another story. this is about the fairtrade mark. it could be under threat? supermarkets are saying we don't wa nt to supermarkets are saying we don't want to use the fairtrade standards which are is the for all supermarkets by a group of non government organisations and the supermarkets, we will use our own ones and use your own fairtrade—style brands and sainsbury‘s and tesco's are looking at this. the supermarket price war in the uk is ferocious and they are looking to use the fairtrade halo, but set their own standards. fairly traded is a bit close to their trade. that could mean anything. what is fairly traded? what will it mean for the producers who are
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reliant on this brand? the producers don't like the idea because the fairtrade system sets minimum prices and minimum standards of welfare for workers. it is good for the farmers. we don't know what the new standards will actually provide for them. dominic, one last thing, holland and barrett was being taken over. an unlikely buyer. a russian is an og is unlikely buyer. a russian is an og ig arc and businessman and he has bought a bunch of interesting assets. he sold tmk for a lot of money and reinvested it. now they see health food is the way forward. they've expanded massively. thank you very much, dominic for talking us you very much, dominic for talking us through those stories. that's great. there will be more business news throughout the day on the bbc news channel and on world business report. thank you forjoining us. see you soon. hello, the heat and sunshine of last
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week will seem like a distant memory. gardeners and growers will be welcome for the spells of rain. from midweek everywhere turns cooler and fresh. today is probably the best day of the week in terms of dry and bright weather, but a system to the south—west fast approaching will brood deuce more cloud and bring rain into northern ireland this afternoon. we could get a few showers across parts of the country. some spells of sunshine, but the rain starting to settle into northern ireland as we head into the afternoon and the cloud increasing across wales and south—west england this afternoon, but in the sunshine still highs of 19 or 20 celsius. the best of the sun shin across central and eastern england. here, a fine day. temperatures perhaps up to 24 01’ day. temperatures perhaps up to 24 or 25 celsius across parts of south—east england, but temperatures really limited across northern ireland as that rain settles in this afternoon. aside from one or two showers across scotland you should
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get away with a mainly dry afternoon, but feeling cool and fresh. the rain band continues to push its way northwards into northern ireland, bringing a fairly tricky rush hour here and by the end of the night, parts of north—west england and parts of southern scotla nd england and parts of southern scotland could see up to 50 millimetres of rain. so a fairly wet night here. starting to clear from northern ireland through the early hours. across the northern isles of scotland, clear and chilly. across england and wales where it stays dry, cloudy or humid, a complicated picture tomorrow. we have our system to the west bringing further rain to parts of scotland and northern england. a different system across the near continent generating heavy showers and they could merge to give a longer spell of rain, but the rain will clear from northern ireland through the morning, but some heavy, thundery showers developing here. the rain is likely to be persistent across parts of northern england and scotla nd across parts of northern england and scotland tomorrow. so wherever you are, an unsettled daiflt rain never far away. cool across the east coast of the uk, but warm and humid to the south. here is how wednesday is
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looking. if you have outdoor plans, don't make this the last forecast thaw see because it is a complicated picture. low pressure still in charge. at this stage it looks like we will see further spells of rain across england and wales, but it nou not get into parts of scotland, but wherever you are, it will start to turn noticeably fresher. hello. it's monday. it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. our top story today: northern ireland's democratic unionist party, the dup, say they're close to reaching a deal with the conservatives to keep theresa may in power. we'll bring you the details. also on the programme: every single tower block that's had its external cladding tested so far has failed fire safety tests. the key priority for us has got to
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be to keep people safe and that is why we are making sure this process works as quickly as possible. that was the housing minister. labour's shadow chancellor john mcdonnell says victims of the grenfell tower fire were murdered by political decisions taken over decades. is he right? also on the programme: two months after we revealed 800 women
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