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tv   BBC Business Live  BBC News  June 27, 2017 8:30am-9:01am BST

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this is business live from bbc news with rachel home and ben bland. china's premier hails the opportunties of economic globalisation but warns against the dangers of unfair growth leaving some behind. live from london, that's our top story on tuesday the 27th ofjune. china's premier says the country will meet its full—year target. we will take a look at how things
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may look on wall street later. and the challenge of keeping your kids entertained — we will talk to a businesswoman who has crowd funded effo rts businesswoman who has crowd funded efforts to make a backpack with wi—fi and gps. hole in the wall, cashpoint or atm — whatever you call it, it is celebrating its 50th birthday. our eights days numbered? —— butare birthday. our eights days numbered? —— but are its days numbered? a very warm welcome to business life. if china's premier warned the world economic forum that fairness is essential or else people will
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feel left behind. after the usa, china is the world's second largest economy, with a value of the $11 trillion. it accounts for almost 15% of what the world produces each year, but it is home to 19% of the world's population, almost one in five and with the number of people increasing, so too are its cities, in size and number. a brand—new eco—city xiongan will house 2.5 million people. it is home to several unicorns, that is companies worth over $1 billion. some of the best—known names with global ambitions are start—up businesses
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worth over $10 billion. let's cross to our asia business correspondent karishma vaswani, who is in singapore. the chinese premier has been speaking in the last couple of hours — tell us what he said about china's economy. the big focus for china at the world economic forum, the break face of china to the world, appears to be achieving the country's stated growth targets. the premier said that china can contain any of the risks that have been so well publicised about its economy. it can achieve those growth targets. i am talking about the massive amounts of public and private debt that china has, worth more than 250% of gdp, figures that are very scary for most developed economies, let alone china, which is still in the midst ofa
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china, which is still in the midst of a big transition. speaking at the world economic forum, the premier dismissed those concerns and said that china's economy remained steady and had seen improving momentum as it moved to a more domestic focused policy. the premier said that growth forecast is realistic, but he did point to the difficulties ahead in ensuring that everybody is included in this rapid pace of growth. let's listen to what he had to say. translation: globalisation is changing our world with unprecedented speed and depth, which has provided limitless opportunities for all economies. however, has provided limitless opportunities forall economies. however, if inadequate measures are taken, it might create a problem of lack of inclusive growth. in other words, it
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will create a problem of fairness. for example, some people will benefit more than other groups, and traditional industries and jobs may feel the impact. traditional industries and jobs may feelthe impact. there traditional industries and jobs may feel the impact. there seems to be a big focus on tech, and it is a long—standing ambition for china to bea long—standing ambition for china to be a world leader in that field. indeed, and many other big names from asia that have become household names that us, this has become a really important part of the remarkable transformation in china. let's not forget that over the last 30 years, china basically turned into the factory of the world, lifted incomes and living standards for people across the country, and made goods much cheaper than the rest of us. it is trying to do the same thing when it comes to technology, and i think that ambition will be played out in the coming decades. what would the chinese premier be satisfied with at the end of this world economic
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forum? i think for many of them are murderers about china going forward, the fact that a lot of analysis has gone into the idea that there is going to be a hard landing. what china really ca res going to be a hard landing. what china really cares about is the social contract it has with its people. we have had this massive economic transformation of the last 30 years, but that has lifted living standards for people at home. for this to continue, you really need to see inclusive growth, not this huge gap between rich and poor that every day appears to be getting wider range china, which is why there is been this onus on cracking down on corruption. —— there has been. it is a big yearfor the premier and there isa a big yearfor the premier and there is a big party congress at the end of the year, so he has to show that the economy is running well and that people at home are satisfied, so i think that will be a key thing to come out of this forum. thank you very much for that analysis.
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let's take a look at some of the other stories making the news. western digital has told the bbc that they have resubmitted their bid for toshiba's nand flash memory unit. the offer is understood to be in region of $18bn which is the same as the one from a consortium backed by the japanese government, which toshiba last week announced as its preferred option. toshiba is under pressure to raise money following the huge losses it has incurred from its us nuclear unit. the us firm that supplied cladding used on london's grenfell tower says it has ended global sales of the product for use in high—rise blocks. arconic‘s shares closed down almost 6% in new york on monday. the company said it was discontinuing sales of reynobond pe for tower blocks due to "issues" identified by the fire which is believed to have killed at least 79 people. the japanese computer gaming giant nintendo has announced another re—release. this time it's set to bring the super nintendo entertainment system back to life. the original was launched in 1990
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and sold 50m units worldwide. some analysts have suggested it's part of its marketing drive to increase sales of its latest console, the ninetendo switch. nissan says it paid its chief executive carlos ghosn around $10 million in the year ended march, up 2.5 percent from the previous year. mr ghosn, who's one of the best—paid auto executives, received a separate salary of $7.89 million last year as the head of renault, nissan's automating alliance partner. he stepped down as nissan chief executive at the end of march, but remains chairman of the japanese company. let's look at how the markets are doing. japanese stocks edged towards two—year highs on tuesday. exporters benefited from a strong dollar, shares in toyota, panasonic and canon were all up. the dollar has risen in value as investors are expecting comments from federal reserve chairjanet yellen to support the fed's projection for one more interest
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rate rise this year. a softer open on the european markets. there's a general sense of caution in financial markets, according to analysts, noting that commodities like crude oil, which is suffering from a glut, remained shaky though, that said, it has stabilised, and the recent selloff has stalled. a slight lack of direction on wall street at the end of monday trading, the s&p500 and dow closed fairly flat. what does today have in store? federal reserve chairjanet yellen is in london talking about global economic issues. traders will be tuning in to see in america's top central banker has anything to add on the fed's decision earlier this month to raise interest rates for the third time since december. now, her message is likely to emphasise that while the economy
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may not be overheating, the recovery in the us is strong enough for it to consider another rate hike this year. but will in—coming economic data reinforce that argument. two pieces to watch this tuesday is the case shiller house price index as well as a report on consumer confidence. mea nwwhile uber‘s search for a new ceo continues after the resignation of the founder travis kalanick last week. among those reportedly in the running are former yahoo ceo marissa mayer and facebook‘s ceo, cheryl sandberg and the former chief executive of ford, mark fields. thank you, michelle. joining us is jane foley, senior currency strategist, rabobank. you are doing markets with us, but i will mention a market related story thatis will mention a market related story that is now live —— that is on our live page. there was a dip in the gold price of 1.5% yesterday — tell
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us gold price of 1.5% yesterday — tell us why and explain what fat fingered trade means. it means that the market has aggressively given as a price move. what happens is, there are various orders in the system that immediately get filled and the price moves back very aggressively. we call it a fat finger, which probably means somebody made a mistake. literally, their finger is too fat and they have gone to press wonky and hit another one. too fat and they have gone to press wonky and hit another onem too fat and they have gone to press wonky and hit another one. it could have been that, or an extra zero, perhaps. somebody somewhere is probably pretty embarrassed. when you do that... sorry, but when you do that, i can imagine the horror if you had done that. is there anyway to pull it back? it is likely someone to pull it back? it is likely someone is out of money somewhere.
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the system has a lot of trade stored up, so as the system has a lot of trade stored up, so as soon the system has a lot of trade stored up, so as soon as a the system has a lot of trade stored up, so as soon as a certain price is hit, they get filled. someone is very sadly probably out of pocket. you would think the system would detect unusual activity and flag it up detect unusual activity and flag it up before it is too late. the systems do have various safety nets all over the place, but you do sometimes see the sort of movement. we saw it with sterling not so long ago, with the gold market seven or eight years ago. it still happens. today, we will hear from two big important people, the head of the federal reserve and the governor of the bank of england. what we expect to hear? the federal reserve have been saying that they will raise interest rates this year, and three times next year, and they will start addressing their massive balance
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sheet which is a result of quantitative easing, by the end of this year. but the market is not convinced because the economic data in the us has been mixed, particularly in relation to inflation. the market expectation is that inflation will decline. this is why the market is not convinced, but the head of the federal reserve has insisted that inflation will rise as unemployment comes down. we will see. thank you for the analysis. still to come: would you buy your kids a backpack with wi—fi and gps? we'll be talking to one businesswoman who is trying to make it a reality. you're with business live from bbc news. 50 years ago today, the world's first cash machine was installed outside a branch of barclays in enfield, london. now there are 70,000 in the uk,
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and three million worldwide. the traditional ‘hole in the wall‘ has come a long way in half a century, as simon gompertz reports. 1967, a revolution. the first money from a hole in the wall. you put in a voucher and a code and you got ten £1 notes. reg varney, a tv celebrity of the time, had a go and the cash machine was born. and this is what we've come to. less a cash machine than a mini bank. on these ones, you can even open a bank account. signing your name, it will take my photo as welljust to prove that it's me. this one shows you if someone's looking over your shoulder to steal your pin code, reassurance you might want if they close your branch to replace it with a machine. we're moving towards and no bank branch era. we used to have about 20,000 bank branches in the uk and soon we will have 4000. smart atms, as we're calling them,
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in the future will provide 99% of all the services that people can get from bank branches today. that is not a world everyone will welcome but the technology unleashed back in the ‘60s is still transforming the way we bank half a century later. simon gompertz, bbc news. this is a little quiz for you ben. what do you think is 20% more expensive now than it was this time last year? everything. that's how it feels. a grocery item. a grocery item. you might spread it on your toast. but ir. very good! butter is almost 20% more expensive than last year. 0verall grocery inflation running at 3.2%. that's a lot to do with the fall in sterling, the general inflation that we're seeing
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and there is a picture of lidl, the uk's fastest growing supermarket chain, sales growing there 18%. we are talking about the western digital bid for toshiba, the chip business, there is more on that. it's all there, whenever you'd like to have a look. 0r to have a look. or you to have a look. 0ryou can to have a look. or you can look at it via the app. you're watching business live. our top story, china's premier li keqiang has been hailing the benefits of economic globalisation, saying it brings unprecedented opportunity for all. but he also warned the world economic forum in the north—east chinese city of dalian that fairness is essential or else people will feel left behind. a quick look at how markets are faring. slightly softer start to the beginning of the trading day across
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the main european indexes. and now let's get the inside track on a subject that will be music to every parent's ear — that is, being able to keep their kids occupied and engaged. well, our next company does just that with their range of unique activity backpacks for children. founded in 2009 by two working mums gill hayward and kellie forbes, yuubag has a simple concept. they sell backpacks which transform into a portable entertainment system with a foldable desk. the bags are sold over the world. the company is now crowdfunding a new tech enabled bag which will have wi—fi and gps. with me is gill hayward, co—founder and director of yuu, a company that designs and produces a range of unique activity backpacks for children. we have seen briefly images of the bag. we've got one here. this is the tech bag. it is, indeed. quickly, it unzips. this comes down like a desk. there is lots of pockets. lots of places for them to put their secret
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things and it's easy for the kids to carry. it's lightweight. you started off with a bag that wasn't tech enabled. you're crowdfunding for one that is. explain to us how the crowdfunding process works? as a small business there are two challenges, resource and raising finance to bring the products to market. we have decided to reach out it our customers and supporters and help them crowdfund our new product. there is equity which we're not in this game or there is product raised crowdfunding. we are trying to bring the product to market with the help of people who pre—order in return for large discounts. they will buy the bag at a cheaper price and get it in nine months? less than that. because we're a children's product, christmas is everything to us. we're crowdfunding now so we can deliver the product to market in time for november and december so santa can
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deliver. isn't the challenge trying to get kids away from tablets and smartphones. surely that's what they wa nt to smartphones. surely that's what they want to be playing with and that's what you see a lot of parents using to keep them entertained?m what you see a lot of parents using to keep them entertained? it is important that children can balance tech play and active play. when we designed the original range of products it was about did z kids being able to get out and about and do all the things they want to do with the entertainment on their back. we have snakes and ladders, pencils, pence and drawing and the kids love that as much, but they will spend time on screens. and we recognise that it's important now that the children can engage in tech ina more that the children can engage in tech in a more positive way. one of the reasons we created the gps tracker bag was that children could track through as an add haven't turer and see where they have gone and count their steps and journeys and for pa rents their steps and journeys and for parents it's about being able to track where the bag and the child. it's peace of mind. i can see the progression from the backpack that
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you created, you went on dragon's den and you got funding and you thought how do we move on? a lot of stuff about tablets and wi—fi. this security element, the fact that pa rents security element, the fact that pa re nts ca n security element, the fact that parents can track their children, is that something that you have had mixed reviews on? i can imagine some pa rents would mixed reviews on? i can imagine some parents would like that. other people might be very against that.|j think, people might be very against that.” think, you know, in this day and age most devices that people have, there isa most devices that people have, there is a tracking facility on it, you know, parents, most parents or ca re rs know, parents, most parents or carers have had that moment when a child has been late become from school and you felt very nervous so to be able to go o check the child's location or to check if a child has come in or out of a preset area or zone, the parents can do that on their app. never lose the bag! never lose the bag! now, you have been running the business now for six or seven yea rs, running the business now for six or seven years, what would i say is the biggest challenge that you have faced? in the early days, it was actually managing demand. when we
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launched we sold our first products within minutes and we sold out our first container within weeks. in the early stages that challenge was being able to manage how do we get the production and meet the demand. recently, it is in terms of fund—raising new product launches and grow the business if the way we wa nt to and grow the business if the way we want to and gain the finance and the working capital to be able to do that. you have launched your crowdfunding. you launched three weeks and you're almost half—way to what you need. good luck with. thank you very much for your time. in a moment, we'll take a look through the business pages, but first here's a quick reminder of how to get in touch with us. the business live page is where you can stay ahead of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors right around the world. and we want to hear from you, too. get involved on the bbc business live web page, bbc.com/business. on twitter @bbcbusiness and you can find us on facebook at bbc business news.
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business live on tv and online, whenever you need to know. let's see what other business stories the media have been taking an interest in. dominic o'connell is on set. we are going to talk about the grenfell tower cladding. the company that makes the product have suffered a fall in share price. company that makes the product have suffered a fall in share pricem was one of the companies that was spun off it. it made the panelling rimer bond for 20 or 30 years. yesterday it said it stopped selling their product for any high rise buildings. they said they were going to stop selling it because of disparities between different countries fire recognise lations which gives the view that they don't really ta ke which gives the view that they don't really take responsibility for how
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the product is used. they will sell it, but it is up to the locals to decide whether it complies with their fire decide whether it complies with theirfire regulations, but investors think it maybe in the firing line from the grenfell tower investigation. and in terms of the company's future... well, it's a big company. it's a big company. 0ne company's future... well, it's a big company. it's a big company. one of the things we have learnt over the yea rs the things we have learnt over the years from disasters is from victims, lawyers will always chase the money. the other companies involved in the grenfell tower refurbishment are small. arconic is very big. if the investigation shows any failings very big. if the investigation shows anyfailings in very big. if the investigation shows any failings in the cladding, they will probably go after the manufacturer. we want to talk about big anniversary. 50 years of the hole in the wall cash machines... 196 in enfield. who was the celebrity they had on hand to launch the first cash machine?” celebrity they had on hand to launch the first cash machine? i don't know. reg varny from on the buses. i don't know. he is like a russell
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brand. it brings out the whole question of do we still like using cash? do we prefer to do cash or contactless? there will be more cash machines because the number of bank branches are going down and super whizzy cash machines will do everything. i suspect with payment apps we will see fewer cash machines, not more and more. we have had lots of tweets on this. dave says, "always like to have some cash on me " says, "always like to have some cash on me." he worries that cashless society would see the end of busking. chris says paper money is needed. lawrence prefers cashless wherever possible. adrian says, "i a lwa ys wherever possible. adrian says, "i always get caught out if i don't have cash on me." i dashed into the corner shop and i was told £1.50 if i wanted to get cash. this is a good story in the ft
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showing how recession can lead to innovation. if you'd gone to sao paolo the traffic was so bad. in the wa ke paolo the traffic was so bad. in the wake of corruption allegations which brought one government down and might bring another government down, business activity has slowed down. business in brazil went backwards. now the helipads are being used for exercise classes and parties. finding another use for the toys of the rich and famous. do you fancy y°93 the rich and famous. do you fancy yoga on top of a high rise building. no, not if you fell off the edge. no, not if you fell off the edge. no, thank you. that's it from us today. there will be more business news throughout the day on the bbc web page. we will have more business news for you tomorrow. bye—bye. hello there. good morning. we have a
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rather unsettled week ahead. lots of rainfall in the forecast and today, rainfall in the forecast and today, rainfall already across the northern half of the uk. even in the south, where it was drier and brighter this morning, there will be some rain at times. we're being invaded by two areas of low pressure. 0ne coming out of france. the other one in the north and the west and that's what is providing the rain across northern ireland. we can see by the afternoon the rain is spreading into the south and south—east. let's take a look at things at apm. i think in western scotland, things drying out a touch, but it will stay wet in the east of scotland. with an on shore breeze it will be chilly in aberdeen. some brighter skies in northern ireland this afternoon, but heavy and thundery showers developing here. for much of northern england and wales and the midlands, it will stay cloudy and dreary. for central and southern areas and the south east, some heavy and thundery rain spreads in across
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the south east and even in the south—west here, again you will see a few showers. through this evening, it stays wet really across most of england and wales. the rain becoming more extensive as we go into the early hours of wednesday morning. quite a cloudy, damp and drizzly night elsewhere and temperatures down to 11 to 1a celsius. it doesn't ta ke down to 11 to 1a celsius. it doesn't take a meteorologist to tell you that this weather chart is looking pretty messy as we go into wednesday. low pressure dominating things and you can see here once again there is going to be some outbreaks of rain. so a wet start to the day to your wednesday morning. things drying out a touch and actually the north—west of scotland, you will see some breaks in that cloud developing. not too bad here. but elsewhere, it will stay cloudy and even though it becomes drier in the south east, it will stay cloudy into the afternoon. rain elsewhere and temperatures again about 15 to i9 and temperatures again about 15 to 19 celsius, but chillier along the north sea coast. for thursday, again, lots of wet weather around throughout the day. something a bit drier and brighter down to the
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south—east and temperatures again typically around about the mid to high teens. for thursday, well, again, low pressure in charge and that takes us into friday. this weather front here bringing outbreaks of rain. it will sink south and eastwards. to sum up this week, it will stay unsettled, low pressure never far away. spells of rain and it will be cool at times as well. more details, of course, can be found on the website, but for now, that's it from me. bye—bye. hello. it's tuesday, it's nine o'clock — i'm victoria derbyshire. welcome to the programme. this morning: in an exclusive interview, the mother of murdered soldier lee rigby tells this programme the ministry of defence have failed to support her family and how recent terror attacks have affected them. i was so heartbroken, especially it being his anniversary and it being children. there are so many parents
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who are left without their children and will be feeling how we feel. we will be speaking live to lyn rigby and lee's sister. how is it possible that no one yet
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