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tv   BBC Business Live  BBC News  February 15, 2017 8:30am-9:01am GMT

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this is business live from bbc news with aaron heslehurst and ben bland. the imf says greece needs more money, but europe says it's had enough, as it sends in its top man to try and break the deadlock over debt. they want more? they want more? live from london, that's our top story on wednesday, 15th february. the people of greece take to the streets in protest over a tax hike. the country's economy is shrinking, but its creditors are demanding further austerity. it means more cuts and more pain. also in the programme — up, up and away, as india breaks a world record and shoots 104 satellites in one go into space. we're going to look at how that country is becoming a serious
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player in the space race. and as always all the market action. it was another record setting day on wall street. stay with us, we'll tell you why? also in the programme, finding a diamond in the rough! we'll meet the woman whose company is turning waste into energy. lloyds of london is banning drinking during work hours. today we want to know, is the liquid lunch a thing of the past? is it ever acceptable to drink during the working day? just use the hashtag bbcbizlive. welcome to the programme. the eu's top economist, pierre moscovici, is visiting
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greece today to talk about the country's debt problem. he's trying to break the deadlock over the release of a further bailout. athens and its international creditors have been wrangling for months over the issue, and failure to reach agreement has spooked the markets. yesterday it was revealed that the greek economy unexpectedly shrank in the last three months of 2016. so what options does the country have? greece is now under increased pressure to step up its economic reforms, including on painful things like cutting pension payments and raising taxes. meanwhile, the international monetary fund says greece needs more money, give it more cash in order
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to get its economy back on track. but that's not going down well with the eurozone, which says it's already written off enough greek debt. the greek government faces debt repayments of $7.1; billion this summer. and they can't afford those payments unless they meet the conditions being asked by the lenders and in return, the lenders will agree to release more money from the country's $91 billion bailout pot. that hasn't happened just yet, ben. vicky pryce, economist at the centre for economics and business research. it is not aaron's fault, but he has
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been reciting the same story as we all have time and time again. here we are yet again, greece having problems paying its debts. what is to be done and why are we still here? there have been issues in the way greece has been implementing the reforms. what's been going on, there has been an agreed third bail out. the imf decided it wasn't going to ta ke the imf decided it wasn't going to take part in it until it satisfied itself that greece were doing the right things and that the debt was sustainable. and there has been review after review, we're in the second review for the third bail out. this review has not been concluded because nobody is convinced that greece is really doing the right things and this review should have been completed months ago and there is a crucial meeting on 20th february which needs to decide what happens with greece next? it isn't the case of a new bail out, it is really having the extra bit of the bail out that was meant to be coming a few months ago really which hasn't been forthcoming yet. we have sat here over the
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yea rs, yet. we have sat here over the years, right and spoken about this. before brexit came along, we used to talk about grexit. that was the word on the street and people used to go, "europe will never let another go leave the union." now brexit is happening, i'm wondering is there a mindset in europe which makes it easier to go, "it's ok if greece does leave." i think it is the opposite. given that there is going to be brexit under some conditions which, of course, still have to be agreed the last thing that europe needs now is to have further disintegration. there it is facing trump who has been pretty critical of what the eu does and to see a country like greece leave and the whole europe project therefore being put into question will be pretty, pretty ha rd. put into question will be pretty, pretty hard. sorry ben, europe could bea pretty hard. sorry ben, europe could be a different political landscape. we have election ins france, the netherlands and germany and you could get people in power that won't have the appetite to give anymore money to greece? that's true, of
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course, it isn't anymore. it is the bail out that was agreed before. that's what we're talking about, but yes, of course, we have the elections in the netherlands in march. it is one of the reasons why eve ryo ne march. it is one of the reasons why everyone is trying to get agreement before the elections. so perhaps we get something by mid— march, there will be something on 20th february which says yes, we have a way forward. perhaps it won't and then what we will see after that, we have the elections and indeed they have the elections and indeed they have the french and the germans, if there is any serious unsettling sort of movement in europe, that is going to in many ways help the populist parties which the current players don't really want to see. i think they will try hard to get a compromise. we were talking about whether greece would leave the european union. if not quite leaving the european union, do you think we could foresee bli see greece leaving the single currency? when you look at opinion polls which used to be very, very positive in relation to the euro and europe in greece, they have swung a little bit. now, you
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get some polls which suggest the majority of greeks want to get out of it because of the pain it has caused them over a number of years. i think there may well be a possibility of a snap election coming after this agreement is settled and i think the euro, or being part of europe, may well play a part in whatever it is that particularly the syriza party the one in power, maybe going to the electorate with. so we may well see some of that, but overall the greeks will be conservative. they feel they should be attached to europe. they are concerned about developments in russia and everywhere and of course, so russia and everywhere and of course, so does the rest of europe in fact. thank you. in other news: shares in toshiba tumbled further during trade in tokyo — falling 8.8%. the firm's chairman resigned on tuesday, after the company announced a $3.1; billion net loss for the year. the company had announced it
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expected to take a $6.3 billion writedown at its troubled us nuclear business. dutch brewer heineken has reported a rise in its organic net profit, up by 8.5%to $2.2 billion. the world's second biggest brewer expects to see further revenue growth this year, but warns economic conditions are expected to remain volatile. facebook is launching an app that will allow users to stream videos in their news feed through set—top boxes to their tv. the move could allow it to eventually better compete with the likes of youtube and traditional television channels for advertising revenue. india has entered the history books by successfully launching 104 satellites on a single mission, smashing the previous record of 37 satellites launched by russia in 2014.
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yogita limaye is in mumbai. an incredible accomplishment for india, but it is really highlighting that country's presence, i guess, right in this space race? that's right. i mean there is a lot of indians feeling very proud today, aaron, but it is notjust about pride. this is about money as well. about six months ago i was at the indian space agency headquarters in bangalore. at that time they launched 49 foreign satellites into space and earned $120 million doing so. space and earned $120 million doing so. today the number has gone up by 101, 101 satellites were on that
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rocket. it puts india on a firm footing in the global market as far as launch vehicles for satellites are concerned and there is huge demand for it because companies today want to not just launch one satellites or two satellites into space, but 20, 50, 100 satellites. astonishing stuff. thank you for that. we'll talk to you soon. let's ta ke that. we'll talk to you soon. let's take a look at the asian markets. all helped by another wow on the dow! another record session on wall street. wall street was boosted by the big boss of america's central bank, janet yellen who spoke yesterday, when she speaks, markets stop! and we listen. everybody listens to every word that comes out of her mouth. yesterday she kind of flagged a possible interest rate rise next month which kept the us
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dollar near three week highs. let's look at the european markets because the market watchers were expecting the market watchers were expecting the same enthusiasm to continue in oui’ the same enthusiasm to continue in our trading session over here and that's exactly what is happening right now. ben. joining us is richard lewis, head of global equities at fidelity international. aaron was mentioning the testimony from janet yellen to congress. the markets seeming to like what she had to say? yes, this is one of the semi annual testimonies. it is a well watched event and mrs yellen is carefully managing market expectation and here we saw another change in nuance from mrs yellen hinting at further rate rises to come, interest rate rises to come this year, but nothing really that the market wasn't expecting. so what she has done with these comments is really confirm the markets, say to
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the markets, you're about right with your expectations of where you are. and european markets responding to what we were talking about with greece as well? yes. well, i think, the most powerful influence for the european markets is what mrs yellen says. there is a secondary story with greece which is once again, you know, this dilemma that the eu has with the greek bail out and it is where we were two years ago and i don't suppose that much will happen this side of the german elections of any note, but what all this stalemate does do is it ensures that mr draghi, the chairman of the ecb will keep interest rates at negative rates and he will keep pumping qe and that's the most important message for european financial markets. in a very bizarre sense, the greek dilemma, which is a greek tragedy for the greek people, but the greek dilemma is proving remarkably positive for the european financial assets because of the effect on the ecb. you mentioned
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draghi, we mentioned janet yellen. never before, i'm asking you this as a question, have we seen where the markets are so focussed on central banks? yes. yes! it is the only game in town. it has been since the great financial crisis. exactly. the central banks have intervened very heavily in financial markets for six yea rs heavily in financial markets for six years and the financial markets are 110w years and the financial markets are now completely dependant on that intervention. 0k. now completely dependant on that intervention. ok. you will come back and take us through some of the papers. all right, we'll talk to you very soon, thank you, richard. still to come, turning rubbish into a resource. we'll hear from the woman whose company makes energy from waste. you're with business live from bbc news. sick pay and sickness benefits is costing state and businesses around £23 billion per year, according to a new report from the ippr. they are calling for a more flexible fit pay to be introduced which they say would be suitable
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for modern times. joe dromey is senior research fellow at the ippr. did you say fit pay? what is that? fit pay is a new benefit we are recommending which would help keep more people in touch with work when they developed a health or mental health condition. the government has been trying to reduce the number of people on sickness related benefits for many years and they have failed. we argue this is because too many people who developed a hell for mental health condition just fall out of work and end up on benefits. we are talking for more support from the state and employers to keep people well in work and to keep people well in work and to keep people in touch with work and fit pay is one of the ways we think this can be done. if a company like the idea you have suggested and they wa nt to idea you have suggested and they want to implement it, how easy is it? when systems are in place, it
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can bea it? when systems are in place, it can be a real headache trying to change to something different. we believe it would be relatively easy to implement so if an employee develops a hell for mental health condition and the gb agrees it is best for them to reduce their hours, —— a health or mental health condition. they can reduce their hours with the agreement of their employer and fit pay would ease the loss of earnings and also if an individual has fallen out of work com pletely individual has fallen out of work completely but wants to return on a part—time basis then fit pay, this flexible sick pay, if you will, will help support them back into work and make sure that their income is a lwa ys make sure that their income is always better off in work. we hope that it would be better for employees and employers, who spent £9 billion per year on sick pay at the moment, and betterfor the public finances. thank you for joining us. we are trying to... you know what?
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you aren't. the person who sits down is the person who has to deal with a tablet. i've just fixed is the person who has to deal with a tablet. i'vejust fixed it is the person who has to deal with a tablet. i've just fixed it for you. we should talk about lloyd's stopping the boozy lunch. we will talk about that later. but i wanted your opinion. is on the business live page, even if we can't show you right now! you're watching business live. our top story — the eu's top economist, pierre moscovici, is visiting greece today to talk about the country's debt problem. yesterday, it was revealed that the greek economy unexpectedly shrank in the last three months of 2016, but the country is facing increased pressure to step up its economic reforms, including painful things like cutting pension payments and raising taxes. but they are not doing it. they promised to do it for some time but
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they haven't. turning waste into energy might seem like the ultimate efficiency. alchemy, some might say. what could be greater than using the stuff we throw away to create power? but it's not always as easy as that, with waste often having to be transported great distances before it can be processed and turned into energy. well, our next guest thinks she's cracked that conundrum. she's the boss of seab energy. sandra sassow has created two patented products, the flexibuster and muckbuster. they use technology which converts food and animal waste into energy on site. and the company has just struck a near £1 billion deal in india — that's around $1.25 billion. sandra sassow is the co—founder and ceo of seab energy. great to have you with us. it is
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like the three stooge... no, not three! we will be more polite from here on in. i've got to ask because you worked on the hubble telescope navigation systems and now you are doing this. can you tell us how, for dummies, like me, how it works? doing this. can you tell us how, for dummies, like me, how it work57m is dummies, like me, how it works7m is almost the same as the hubble space telescope, going out into the distance, taking waste that is local and converting it. it is a bacterial process. the bacteria it the waste in the shipping containers. then it produces biogas which is then converted in an engine to electricity and we capture the water from the waist so if you have food waste, which is 80% water, you can ta ke waste, which is 80% water, you can take the 80% that you are recapturing and turn it into a water resource for the site as well. who is buying into the idea? do you have any big customers who have said they liked the sound of it and they are
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going to install it? absolutely, we started selling the production version of the product last year and we have closed sales in four countries. we have the nhs in southampton, that has taken one, to ta ke southampton, that has taken one, to take the waste from the site and produce electricity for the hospital, saving them money, giving them more money to do other things related to health care. we have a large corporate in manhattan that has retrofitted one, or is retrofitting one, into one of their existing iconic buildings in the city so a fortune 50. we have got a client in portugal. is it expensive to get started, though? it's not, it isa to get started, though? it's not, it is a plug and play system, it arrives ready to go. what would it cost me if i wanted one? it depends where but it will give you a three to five year payback, so the systems range from £140,000, up to £400,000, depending on the size of the system, amount of waste you are going to be
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converting into electricity. how much space does it take up? it isa much space does it take up? it is a shipping container? and you just put it in? so you don't need planning permission? some places, you do and some you don't. some places require extra permits. it depends on where you are in the world and what the regulations are. is this the kind of technology that over time you can shrink so we could put it... it's a bit hard to have a shipping container next to the house. although it depends how big it is. we have shrunk it, if you think about it because right now, waste is converted in big centralised facilities that tend to be outside the urban environment so you are trucking waste to those sites. we have shrunk it into something that can fit in an urban environment and can be placed into the megacities that are expanding around the world. we have taken it down into 20 foot shipping containers. if you take that and
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shrink it down, we are trying, we will go smaller when we can but technology and supply chain is keeping us where we are. it is quite different from where you started working on the hubble space telescope. how did you make the transition? do you miss the hubble work? it is all tech and there is as much tech in this as there was and what i did there butjust applied differently. you must get a differently. you must get a different reaction from people when you say i worked with people on the hubble space telescope and now i work with waste. we got an award from nasa, choosing us as one of the nine tech firms in the world that was doing something advanced in the waste sector and they took a view that that was advancing where the world was going. they are looking at what we're doing as they closed loop environment for long haul space flight. environment for long haul space flight. who knows? i might go back to space work in the future. thank you forjoining us. great stuff.
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thank you for coming on. 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 use. we will 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,, on twitter @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. joining us is richard lewis, head of global equities at fidelity international. he has come back into the studio to talk through some of the stories in the papers and there is one that has got people talking a lot on twitter about lloyds of london banning... come on, when did you last have a
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boozy lunch? a long time ago because i thought this thing had gone from the city under competitive pressures but obviously there are still one or two areas where people still have a drink at lunch time. we have got a feud tweets and thank you very much for them, erica says, feud tweets and thank you very much forthem, erica says, "can't understand why people feel the need to drink during the working day". erica does not work for the bbc! anthony says, "i thought those days had long gone", as you say. alex says, "if it is one during unpaid lunch break, i don't see a problem". " every lunch break, i don't see a problem". "every time i have a couple of jack daniels, i start singing show tunes which is not good for the office". let's move on... the satellite launch in india. a phenomenal achievement, i'm sure launching 104 satellites is pretty difficult but i think what it shows is for somewhere like india, a developing market like india does not go through the
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industrialisation faith that the western world did because these countries can see the destination. they don't have to go through the process , they don't have to go through the process, they jump from they don't have to go through the process, theyjump from being quite underdeveloped to being right at the forefront of technology in some cases and that is what this is all about. interesting point because we have been covering this all morning and we have seen lots of tweets and so and we have seen lots of tweets and so forth and questions have been raised, some people have said, hang on, india has launched this amazing rocket and has this programme and yet something like 150 million indians still don't have a paul allott. yes, and probably 100 million indians with engineering degrees. -- 150 million million indians with engineering degrees. --150 million indians still don't have a toilet. but there's a lot of talented people in india. goldman sachs shares shattering a 10—year record hitting a new closing high. is there any stopping the trump trade rally? this isa trump stopping the trump trade rally? this is a trump trade squared, right?
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there's been a couple of personnel moves that the market picks up on which looked very favourable to goldman sachs. the first is that the presence of gary cowan, the former president of goldman sachs, is donald trump's right—hand man when it comes to advising on industry and financial regulation. the second yesterday was the resignation of a very respected man called down to rouleau from the federal reserve who was a bit of a regulatory hawks at the confluence of those moves suggest to the market that the regulation will go in goldman sachs' favour. and the man who was confirmed, or 17 years at goldman sachs. it is a very well-connected firm! especially now! thank you for joining us. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. hello. feeling very pleasant way you
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have the sunshine once again but there will be a bit more cloud around than yesterday and from that, especially through first thing this morning, a bit of rain as well. that will spread north and east steadily through the day. it is this zone of cloud which has been pushing up into devon and cornwall and south west wales through the night which is reducing the heaviest bursts, a few showers in the south—east corner and east anglia will clear in the next few hours and then a zone of rain pushing northwards. misty and murky start across some in the south and it stays predominantly cloudy, unlike the sunshine of recent days. rain will push northwards and it means for the afternoon, south—west england, the channel islands and wales much brighter with lots of sunshine, temperatures 12 or 13 but a few showers pushing into the west later. a damp afternoon in store for the south—east, fringing into east anglia, the midlands and north west england. north—east england should stay dry through the day with a bit of sunshine. some sunny spells in
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northern ireland but from lunchtime, lots of showers and a strengthening breeze. much of scotland drive through the day, a bit damp in the south west later. best of the sunshine in the north—east where we could hit 13 or 14 celsius once again. the daytime rain clears away from eastern parts of england but we continue to see showers feeding into night across parts of scotland and northern ireland, with a strengthening breeze to go with it which will keep temperatures up. milder than last night but further south, with clearer skies and lighter winds, a chilly start to thursday compared to this morning. some mist and fog patches in central and southern england, slow to shift but when they do, good sunny spells with a brighter day for most across england and wales. scotland with more cloud at times and a few showers around but some of you missed them all together and in the sunshine, when you get it, once again feeling quite pleasant with temperatures peaking at around 13 or 14 celsius. high pressure building through thursday night into friday morning. some spots of rain around the north and west. the wind slightest in the south and a greater
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chance of fog to start friday. it could linger across some parts of southern england. where it clears, the sun will be out and it will be a very pleasant day indeed, after a chilly start, temperatures reaching into the teams again. the best of the brightness through the afternoon on friday towards eastern areas. in the west, the cloud comes later, the breeze picks up and a few spots of rain but foremost, will be dry. —— for most, friday will be dry. hello. it's wednesday, 15th february. i'mjoanna i'm joanna gosling. south korea says it is certain that the half—brother of north korea's leader kim jong—un has been killed in malaysia. kim jong—nam died after an apparent poison attack in the airport in the capital, kuala lumpur, on monday. no motive has been confirmed and the attackers have not been identified. malaysian police say he complained of being attacked by women who covered his face with a cloth full of burning liquid. he was then taken
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to the clinic at the airport and then brought to hospital, but he died en route. nineteen million people in the uk aren't earning enough money to have an adequate quality of life, according to new research. poverty campaigners thejoseph rowntree foundation say that a couple with children now need to earn a minimum of £37,800 to get
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