tv BBC Business Live BBC News June 6, 2017 8:30am-9:01am BST
this is business live from bbc news with sally bundock and ben thompson. could brazil get a third president in a year? amid claims of corruption, bribery and illegal funding we'll look at what next for the ailing economy. live from london, that's our top story on tuesday the 6th ofjune with ongoing protests, the stakes are huge for latin america's biggest economy — which is just recovering from two painful years of recession. we will talk you through what is at sta ke. also in the programme, one of the world's biggest coal mines gets the go ahead in australia. india's adani group says protests won't stop the $12 billion project. and markets are in wait and see mode, with the uk election looming large and central bankers getting ready for key meetings. we'll tell you all you need to know.
and forget wi—fi, forget bluetooth — how about sending data with sound? we'll get the inside track on how the technology could revolutionise the way we share information. we'll speak to the man behind it. and staying with tech, apple has launched its new smart speaker, it's called the homepod but it's more expensive than rivals from google and amazon. so is it on your shopping list? just use the hashtag #bbcbizlive. welcome to the programme. get in touch with your views on the homepod or anything else. it doesn't seem like all that long ago we were talking about brazil's meteoric rise to economic stardom
as one of the so called brics. but all that has come crashing down thanks to a string of corruption allegations involving top politicians and companies. and it could all come to a head again later today as brazil's top electoral court resumes the case against the country's former president — dilma roussef— and her successor michel temer. they're accused of illegally funding their 2014 election win. this is how the economy has fared over the last five years. since rousseff was voted into office, there have been two years of recession — ending last week when growth of 1% was reported for the beginning of this year. a little bit of a turnaround. she was impeached 10 months ago and succeeded by michel temer who has focused on economic reforms but could now be out of office by wednesday. government policy and stability is important because non—financial
companies owned by the state account for nearly 18% of the economy. the two biggest are eletrobras and petrobras. the latter is the state owned oil giant at the heart of the corruption allegations and was once the biggest company in latin america. with me is edwin gutierrez, head of emerging—market sovereign debt at aberdeen asset management in london. nice to see you. sally, talking through the issues at stake. what happens next, where are we in terms of these proceedings? we will hear more later today, but could we get to the stage where the last elections are in old and that michel temer has to leave office? it is a possibility. we now have this case
up possibility. we now have this case up the electoral court, and we could conceivably get a judgment this week against michel temer. we would get new elections. one of the prospects is that one of the seven justices of the supreme court could request more time, which would delay a judgment. i wanted to get onto that. anybody hoping for a swift resolution will be disappointed, it could be a protracted hearing. as you mentioned, thejudge could ask protracted hearing. as you mentioned, the judge could ask for more time? there is a lot happening behind the scenes, most politicians and members of the judiciary. behind the scenes, most politicians and members of thejudiciary. many see this as the negotiation process. the request for more time, it could be discussions about if michel temer falls, who is the successor? and thenit falls, who is the successor? and then it would not happen until the major parties had agreed. what are the obligations of —— what are the
implications of brazil? it was one of the big players, but it hasn't played out how many people thought. the economy has been in recession and it is a difficult place to be? absolutely, we finally had a quarter of growth after two years of recession, but it is quite reasoned and quite challenged. there is a lot of debt, especially in a household sector. consumption is going to remain subdued. this latest episode affects the economy. it only further undermines recovery in investor sentiment, which is really key. investment of gdp is a mere i6% and you cannot grow if you only investing i6%. you cannot grow if you only investing 16%. whoever becomes investing 1696. whoever becomes all remains the president, what is their top priority? the top priority is the ongoing process, we need to see either the kelton met or a successor
push pension reform across the line. that is the most critical reform investors are looking for. also, businessmen in brazil, to boost investor sentiment. thanks for explaining that. let's take a look at some of the other stories making the news. investors will keep a nervous eye on qatar's stock market today after the index slumped 7.3% yesterday after five gulf nations cut financial and diplomatic ties with the country. it has risen in early trading today. qatar is calling for talks to resolve the crisis. qatar airways has cancelled flights to saudi arabia, the uae, bahrain and egypt after etihad, egyptair, flydubai, gulf air and emirates cut flights to and from the qatari capital doha. apple and amazon could join forces with foxconn to bid for toshiba's semi—conductor business. toshiba needs to sell it to cover
billions of dollars of cost overruns in its bankrupt nuclear us unit. us president trump has said he plans to privatize america's air traffic control system, in what he called an air travel revolution. mr trump says the reform would deliver cheaper, faster, and safer travel as well as an economic boost that could be worth $25 billion to the economy. it's currently part of the government's federal aviation administration employing 30,000 staff. let's talk about a huge deal in australia. a huge and controversial mine in north east australia finally looks set to go ahead. the $12 billion adani project in queensland will cover an area a quarter of the size of london but critics fear it will cause environmental damage. the indian company behind it says those protests won't stop them. sameer hashmi is in mumbai for us. it is understandable why this is so
controversial? well, that is right. it isa controversial? well, that is right. it is a controversial deal, investment, rather. it has been in the making for a while. even adani, after a lot of hurdles, has decided they will go ahead with the deal. they have given clearance to the investment plan and they plan to start the construction of the coal mine by the end of the year. why is it controversial? because there are two sides. it has deeply polarised australians. on one hand, you have the queensland communities, where it will be built, who feel it is a good investment because it will create jobs. queensland has been lagging behind when it comes to development and jobs creation. then you have climate scientists, environmentalists and activists that have been opposing it because they think it will really harm the already ailing great barrier reef, and exasperate global warming, which
isa and exasperate global warming, which is a big issue over there. they claim the amount of carbon dioxide it will emit will be much more than what countries like kuwait and chile do in what countries like kuwait and chile doina what countries like kuwait and chile do in a whole year. clearly, it has divided the country. but adani have said they are going ahead with it. an interesting story to highlight. let's look at the markets and how the day is shaping up. this is how things went overnight in asia. that is the united states... shall i keep talking? that way! you can see them there. america had a rough ride, japan followed suit. japan, down by 196, japan followed suit. japan, down by 1%, with the yen strengthening. let's look at europe, while i sit down, because that is seemingly where the cameras are. europe and france are down. quite interesting, with the polls looking like the races tightening in the run—up to
the election on thursday, markets area the election on thursday, markets are a little bit more nervous than they were some weeks ago, with the outcome not as obvious. let's chat about this with james quinn. he is the business editor at the telegraph. this is where the party is at. i should never have gone over there in the first place. let's talk about qatar. i know we'd talked about it in the news round—up, ithink talked about it in the news round—up, i think it is a fascinating story. diplomatic, political, economic ties severed. what does it mean for qatar?|j political, economic ties severed. what does it mean for qatar? i think it means isolation, certainly in the middle east. there has been no suggestion there is any isolation from the west, as it were. the uk is a big partner. qatar is investing in a big partner. qatar is investing in a lot of things in the uk, it owns 90% of the shard, it owns harrods, it owns the olympic village, it could be good for the uk in an odd way. not cutting diplomatic ties with the west, but it is quite hard to get to if you think about things like air space to get to if you think about things like airspace and to get to if you think about things
like air space and shipping routes. this is where energy intensive industries, things like aluminium, is struggling to get stuck in and out on a logistical basis? yes, qatar airways are having to divert planes around the region. it has made most of its wealth on natural gas, and those pipelines are being stopped. the only intervention is from president trump, saying he will calm the rift. he was recently there. i wanted to get your take on there. i wanted to get your take on the run—up to the election in terms of how markets are digesting it. the pound is super—sensitive at the moment. super volatile. as the polls narrow, the tories have anything between a 12 point lead or a 1—point lead. traders are not knowing what is priced in. at the moment, a close tory win, conservative party win for theresa may, that looks likely. anything other than that will lead
to volatility. it is so funny, we shouldn't read too much into the polls, of course, the last election told us that, and the eu referendum, and yet we have really wildly differing polls. there really is all to play for? the referendum last year, in the run—up, it seemed a likely remain vote. the pound when surging. it was almost $1.50. and then as the result became clear, it fell away. we will keep a very close eye on that. we will talk more about some stories later in the papers. still to come, sent at the speed of sound. we meet the firm that's come up with an alternative to sending digital data via bluetooth and wi—fi by using sound. we'll explain how it all works. you're with business live from bbc news. home appliance retailer a0 has warned of tough trading conditions
despite posting a 40% increase in uk profits the online retailer faced rising losses in their european business — partly down to the cost of expanding the business into europe. theo leggett has been going through the numbers. talk us through what they show. it's a really interesting business. it is the sort of thing you used to buy an high street, now we do it online and it is done very well. but the cost of europe is quite significant? absolutely. a0, it initially stood for appliances online. it has been around for 15 years but has had large expansion over the last few. floated on the stock market on 2014, shares shooting up on a wave of enthusiasm. recently they had been ata enthusiasm. recently they had been at a much lower level. they have been trying to expand a lot,
particularly in germany and the netherlands. that accounts for a large proportion of the operating loss which they posted. they posted an operating loss of £12 million compared to £10 million last year. in the uk, things have been rather better. both revenues and sales are up, better. both revenues and sales are up, revenues better. both revenues and sales are up, revenues up 17%. this is a business that is not yet profitable. it is trying to grow its business. revenues and sales are very important. the problem is, things like washing machines, dishwashers and the like, most of them are imported. with the pound sterling falling to levels it is that now since the eu referendum, importing those things has been more expensive. the company says it has created a mixed trading environment and it expects things to get tougher as we go forward over the next few months. what the chief executive has been saying is that circumstances have become more challenging due to the impact of dampening consumer confidence following the vote to leave the eu, subsequent price inflation and a slowdown in the housing market. so, a mixed picture.
the business is still growing. it expects that growth to slow over the next few months. it is not making money yet, but it is building for the future. it will come out in the wash! thanks for your analysis. you've been waiting all morning for that. don't get in a spin about the results! splenic. .. easyj et easyjet telling us a 9.5% rise on last year and it's load factor. how full the planes are. it's steady 91.5%. you're watching business live. our top story: we're focussed on brazil. latin america's biggest economy could get a third president in a year. one of the brazil's top courts could annul the 2014 election over claims of corruption and illegal funding. we have been across that story.
further details throughout the day on the bbc. a quick look at how markets are faring. they are headed lower. markets treading water with bigger events later in the week like a general election in the uk. with the internet of things, more and more everyday objects are now being connected online. but what about devices which don't have wi—fi or a way to connect to the web? well, chirp is an app which encodes data into sound waves and can be used by almost anything with a speaker and microphone. in fact you could already be using the technology. it's running on hundreds of millions of devices around the world. but it does have big constraints, most "chirps" last for
a couple of seconds and can only transmit a very limited amount of data, enough to send a web address. with us now is moran lerner, chief executive of chirp. nice to see you. welcome to the programme. we tried there to explain it, but you better do it because i think it's fascinating as a technology. we're reliant on bluetooth and wi—fi to transmit all sorts of things. how does chirp work? it is limited in what it can send? it is limited in the data packets we send. we used to be an app. and it is fair to say we are 110w app. and it is fair to say we are now a business to business company where we've developed a suite of softwa re where we've developed a suite of software development kits and our clients around the world are able to embed our technology quite simply in many cases in under three minutes. so they can take that technology and put it in their own platforms? correct. because we work across all platforms, we have gone beyond the
smartphone, you can embed it into smartphone, you can embed it into smart devices and some advanced robotics companies are using our technology. apps, every day apps that are used, gaming, it is used in the latest skylanders game and we are about to announce a revolutionary new interactive toy with a company called high revolutionary new interactive toy with a company called hithinx. revolutionary new interactive toy with a company called high jinx. so the idea this toy will be in the lounge with a toddler and when a certain programme is on the tv the toy will interact with the tv because the sound is activating the toy? absolutely. the beauty of sound is that it's portable and it's everywhere. so you can have a device andi everywhere. so you can have a device and i can show you how it works simply, both the device is off line so simply, both the device is off line so you don't need any connectivity of any kind to use chirp. so this one will speak to this one? that's right. it has appeared there. i can move to
a different area on the screen and i will know the location of the other device. unlike bluetooth and wi—fi isi device. unlike bluetooth and wi—fi is i can have one million devices around me with our software. i suppose that relies on the sound wave being unique because it has to identify a specific thing. we're surrounded by sound every day, it has to pick up that one precise sound that will only play for a split second. our standard chirps are that one split second or 1.7 seconds, but we are able to customise it, if we want to send longer data packets it can be longer. it depends on the device and what our customers want to use it for. give us some applications. sally mentioned toys, you mentioned being able to send web addresses. what would you like it to be used for? we would like it to be the next
protocol, but we're not trying to compete with bluetooth and wi—fi. we're trying to complement what they do. you were explaining to me earlier that it's used in the nuclear industry? yes. if you take the nuclear industry and a lot of other industries in manufacturing and industrial settings where you have radio frequency restrictions. whether it be from the manufacturing site itself, whether it be from electromagnetic fields that are created during manufacture, sound though isn't interfered with and therefore, it's not dangerous and won't cause explosions. how you make money is simple — the licence? won't cause explosions. how you make money is simple - the licence? our clients have unlimited use of our technology to do with it what they want. it's so interesting to hear about this. this is why i love this slot on the programme. a toy in my lounge would drive me mad. too much noise already! thank you very much for coming in
and explaining that. the chief executive of the chirp. come back and see us soon. i will do. apple isjoining the market for voice activated speakers, to take on google and amazon. yes, the device was launched at apple's annual developers conference in silicon valley. it's called the homepod and can respond to questions and control devices such as lights and central heating. dave lee has the details. this is apple's new homepod. it's their new smart speaker which they're billing primarily as a music device rather than a smart assistant like google home and amazon alexa are. they're saying it has spatial awareness so it should fill the room with sound in the way that those competitors don't. and i'm not allowed to touch it and nor can i hear it so i can't actually tell you how good this thing is just yet, but what i can tell you it will be coming out later this year. it will cost $349. first released in the us, in the uk and also australia. other countries coming in the new year, but one
of the potential down sides is that you need an apple music subscription in order to get the full integration. so if you prefer to use spotify or pandora, maybe not quite the device for you, but apple are pretty confident that this is going to give them a good part of the market in this new home assistant space. the name has to grow on me. it just does not. it makes a lot of sense, right and it really speaks to where i think apple wants to position this device is a speaker first. it's about music. is the fact that apple seem to be focussing on the fact it's a music device, is it a kind of a cover—up for sire not being a very good assistant compared to google home, compared to alexa ? i take your point and yes, the criticism you know as far as how sire is not as smart as google assistant, i think that's a fair criticism to make, but i do think it is a different approach and not driven by necessity, but driven by air play in the home. dave lee there finding out what the
homepod smart speaker is about. james quinn is joining us again to discuss. we know it is a tough market already? it is crowded. amazon has got alexa. it is a crowded market. apple invented sire and came late to the market with a device that allows you to talk to sire. others are cheaper. sorry, the viewers picked up cheaper. sorry, the viewers picked up on that. hugh says says it is an overpriced bluetooth speaker, stick the logo on it and inflate the price. patrick says, "why would i wa nt to price. patrick says, "why would i want to change my bowes system?"m ties you in because maybe you have an iphone and think to talk to it, i'll use an ipad and you maybe have
a mcbook and this is the latest in that suite of things. it is a great way of galvanising the fan guys and fan girls into spending more money withalle. none of you have got one of these devices. i've got one and i unplugged it. you have got one? it was a gift! the children were ordering it to do all sorts, order pizzas and all sorts of things. enough is enough to quote someone else! let's talk about gin and tonic. the gin craze is seeing the government make more money on taxes on gin than they have done on beer for the first time? the average percentage is 76% of bottle a ging goes on vat and on duty which is high compared to 60% for a pint of beer. but it has resulted in a large intake... a large intake of gin,
you're right! you can't move for gin this country. in your world, maybe, ben, in my world, i'm trying to fend—off pizzas! laughter it's a huge boom. it is a craze. tonics and people making gin, gin, some people loved it and some people didn't like the taste. they are making it more palatable. what is a gin toll gist? someone who makes cocktails. we're off for a gin! i cocktails. we're off for a gin! , hot, dark tea! very strong coffee, i meant to say. i need. i have been here too long. i'm going to bed. we're here tomorrow. thanks for watching. hello. heavy rain and strong winds
are not things we often talk about injune, but are not things we often talk about in june, but they feature heavily in the forecast today and the combination of the two could bring disruption to travel through the day. large accumulations of rain by the end of the afternoon and the strong winds touching gale force. all driven by this area of low pressure taking its time to pull away eastwards. the squeeze in the isobars, generating that strong, west or north—westerly wind touching gale force. we've seen gust in excess of 50mph. the ban of rain pushing north and eastwards through the day. behind it spells of sunshine, but heavy and blustery showers. so this is 4pm. you are likely to see heavy and persistent rain. starting to dry up across central, southern and western parts of england, but still the showers are never too far away and you could find a rumble of thunder and a flash of lightening. sunshine and showers
for wales as it will be for northern ireland, but the rain really taking its time to clear from scotland. some heavy and persistent rain and feeling very cool underneath that band of rain and with the strength of the wind as well. now the winds do slowly start to ease down overnight, but they're going to take their time. still blustery, the band of rain becomes confined to north—east england and scotland and elsewhere it becomes drier with the winds becoming lighter. temperatures in double figures for most, ten or 11 celsius, dropping to eight or nine celsius across parts of scotland. tomorrow looks to be a better day. finally we see this area of low pressure just starting to pull away north and eastwards. another area of low pressure is waiting in the wings. it will be heading into western areas later in the day. but for much of the country, tomorrow looks look to be a better day, brighter, spells of sunshine and wet for a time across eastern scotland but becoming drier in the afternoon. out to the west, later in the day tomorrow, we see
another spell of rain starting to push in to southern and western areas. but in any sunshine tomorrow and lighter winds it will feeljust and lighter winds it will feeljust a little bit warmer. looking ahead to thursday, it's an unsettled day. we see another band of rain pushing in from the south—west. it may not reach scotland until later in the day, but an unsettled end to the week. hello. it's tuesday, it's 9 o'clock, i'm victoria derbyshire. welcome to the programme. police defend their decision to downgrade and enquire into one of the three london bridge terrorists who killed seven people. and as details start to emerge about the victims of the attack, the sister of 32—year—old londonerjames mcmullan says she is struggling to come to terms with the fact that her brother may be one of those killed, after his bank card was found on a body at the scene. while our pain will never diminish, it is important to carry on with our lives, in direct opposition to those that would try to destroy us.