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tv   BBC Business Live  BBC News  May 9, 2017 8:30am-9:00am BST

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this is business live from bbc news with ben thompson and sally bundock. voting is under way in south korea — but will new leadership make a difference this time? ka nte b rea k ka nte break the kante break the cosy relationship between big business and government? live from london, that's our top story on tuesday 9th may. south korea's massive conglomerates dominate the country's economy, but the election frontrunners say that more needs to be done to tackle corruption at the top. who will win and what can they achieve? also in the programme, there's a new kid on the block in the world of online payments — can the chinese giant alipay give paypal a run for its money in the us? we will take you three winners and
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losers in europe, on the they are all up. also in the programme, we'll get the inside track on a smartwatch that allows parents to keep tabs on their children. but is wearable tech really the solution to parenting problems — or just a technology too far? let us know. just use the hashtag #bbcbizlive. welcome to the programme. please get in touch with your views on that story about parenting, wearable technology, or anything else we are covering. south korea is just a few hours away from finding out who its next leader will be. the election comes after the former president park geun—hye was removed from office as part of an ongoing investigation into corruption. the country's economy bounced back strongly following the 2008 financial crisis, but in recent years, quarterly growth has struggled to break above 1%. what are the presidential hopefuls
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offering to try to change the fortu nes offering to try to change the fortunes of south korea? the current frontrunner moon jae—in has vowed to boost government spending and create over 800,000 newjobs in the public sector. his main rival — ahn cheol—soo — feels the government should be more cautious with its spending plans, but both candidates are united over one key issue — corruption. big business is still reeling from a money for influence scandal that has seen several top executives grilled by politicians. this includes the bosses of massive corporations such as samsung, hyundai and lotte group. in the past, large conglomerates were credited with south korea's rise to economic prominence, but now many experts are questioning whether the country has become too over—reliant on the so—called "chaebol". to give you a sense of scale — the biggest company in south korea is samsung,
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the group spans every aspect of life and its business accounts for roughly 20% of the country's gdp growth. currently the 10 biggest companies in south korea account for nearly a quarter of the country's total corporate tax revenue. with me is agathe l'homme, asia analyst at the economist intelligence unit sally getting into some of the details there about how the chaebol works, the influence they have over the south korean economy. how dominantare the south korean economy. how dominant are they, how much pressure can they exert on politics and economics? they are very dominant and can exercise a lot of pressure. i think that is what we have seen with park geun—hye, the former president, that was impeached. the vice president of samsung is injail on bribery charges, which he denies.
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they have a very cosy relationship. they have a very cosy relationship. the candidates running in the election right now have been campaigning on that topic very intensely. we do expect changes in that regard. how likely is it they can break up that cosy relationship? we posed the question at the start of the programme, the links are so intertwined with many parts of society and the economy. is it realistic to expect there will be cut overnight? realistic to expect there will be out overnight? they will not be cut overnight, i don't think that is desirable. but there should be some reining in happening. the leading candidate, moonjae—in, has been campaigning on that topic. there are already bills in the pipeline. should he be elected, that is forecast, he will have momentum to pass them through the national assembly. it is probably easy as outsiders to criticise the system. we should also remember that system is what has but south korea on the
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map will stop economically, some of the most well—known names in the world have come from south korea, samsung or the other is that sally ryan through. it is a double—edged sword, it works, but we have seen the downside? yes. domestically, what is problematic is that they have such a strong hold on the economy that there is no trickling down any more. a lot of smes are suffering, suppliers of the big chaebol, they don't really see growth happening. a word on north korea, we can't talk about the south without concern for the north, what effect could not have? we see moon jae—in wanting to re—engage with the north. we think they could rekindle the sunshine policy, and to the regime. that is one we will all watch closely. really nice to see you. let's take a look at some of the other stories making the news. toshiba has told its memory chip
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partner western digital not to interfere with the sale of its chip unit. western digital claims that the japanese firm has breached a contract between the two by transferring rights it doesn t own into the chip unit it's selling. toshiba says it will use all available remedies if western digital continues to pursue the complaint a woman who alleges she was sexually harassed at fox news has asked uk media regulators to block 21st century fox's planned purchase of sky. 0fcom is examining the bid for the uk broadcaster, which is worth around $15 billion. dr wendy walsh's legal team says the deal would allow fox to bring a "culture of sexual and racial harassment" to the uk. the company says it has addressed the allegations and made fundamental changes. the international monetary fund has raised its growth forecast for the asia pacific region to 5.5 percent from its previous 0ctober forecast of 5.4%. but the imf also warned that the near—term outlook
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for the region is "clouded with significant uncertainty". in a report, the fund said medium—term growth faced difficulties from a slowdown in productivity growth in both advanced economies and china. we are going to talk attack. —— talk tech. alipay, china's biggest online payments platform, is stepping up its global expansion with a major foray into north america — the home of paypal and applepay. leisha chi is across the story from our asia business hub in singapore. tell us what ali pay has in mind? paypal is the 800 pound gorilla in the room when it comes to mobile payments. but this new deal for alipay puts it in the same league as applepay. basically, users will now be allowed to use the app to shop at
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4 million merchants in the us. that is quite significant. the chinese billionaire that owns alipay has declared his intention is to expand his business empire globally. he is looking at the us, the world's biggest consumer market. in china, alipay already dominates the mobile payment landscape, together with rival they account for most of the market. if the foray into the us is successful, they can expand into other countries where they don't have a presence. it's a smart move, we are seeing increasing numbers of chinese travelling each year and they will be able to use alipay to book cabs, hotels and so forth. interesting, we will keep an eye on that. lets see how markets fared. japan down by 0.25%. a mixed picture in
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asia. most markets down slightly because the previous day was such a strong start to the week. 0ver because the previous day was such a strong start to the week. over 2% gain on monday. a bit of a sell—off. sony is one of the big winners. let's look at how europe is faring. markets across the board or edging slightly higher. oil prices are flat after yesterday's jump off the back of rumours... well, not rumours, state m e nts of rumours... well, not rumours, statements from 0pec about plans to keep production cuts in place for longer, to try to keep the price of oil higher. now what is ahead on wall street. two media companies will be reporting earnings on tuesday, walt disney and news corp. the recent film beauty and the beast will help lift the earnings of walt disney. but the other part of the company, espn, it has been losing subscribers and money. the company will have to pacify investors with a plan to strengthen espn, whilst also finding a capable replacement to chief executive bob iger, who will be
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stepping down in 2019. the decline in newspaper advertising will certainly heard news corp's earnings, they own newspapers like the wall streetjournal, the dow jones newswires and book publisher harpercollins. as part of its digital push, the company has been cutting jobs, especially from its news division. joining us isjeremy cook, chief economist, world first. staying with the american team, the issue that was being raised there, a lot of corporate news? but also we heard from the fed? yes, trying to re—energise the communication coming out of there. it has gone quiet in the last couple of weeks. almost a 100% probability they will raise rates in june. it 100% probability they will raise rates injune. it is a case of whether they will come out and say,
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yes, we are going to do something in june. much like we heard from the imf in asia, there is still uncertainty and clouds around this, they are not going to 2% any time soon. they should call them the fed talk, you know, like the ted talk? with sony, quite interesting, following the fact that emmanuel macron did get the election in france, it has gone quite quiet?m has, we were expecting a bit of a bump and we got the tiniest bump, and then everybody said, well, now the focus turns to the legislative elections and whether he can get a mandate within parliament to be able to get up there and do what he was elected to do. the main conversation i heard on sunday night was, yes, france, but what about italy? everybody is talking about the possible italian election. sony is interesting, that has been around for yea rs interesting, that has been around for years and years. every time you see sony, it is new profit warnings.
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but they are starting to come back, we are getting upgrades by goldman sachs. the oil price is going to be capped, largely due to the fact that 0pec are going to keep the cats going into the market, the price remains pretty stable. an interesting place to leave it, you're going to talk about how petrol stations work out how much to charge? robots are controlling as! we know that already. is wearable tech really the solution to parenting problems — or just a technology too far? should kids be left to be kids? we will find out later. we'll get the inside track on a smartwatch that allows parents to keep tabs on their children. you're with business live from bbc news. theresa may has promised to end the injustice of rising energy
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costs by including a cap in the conservative general election manifesto. the prime minister says the energy market "is not working", with vulnerable people worst hit by rip—off bills. industry groups have criticised the plan, first announced last month, saying it could lead to higher prices. labour, which offered its own bill cap ahead of the 2015 election, accused the tories of desperate stuff. chris mason is at westminster for us. we are getting some details ahead of the manifesto launch about what they might want to talk about today, energy? it is. energy is the big focus today. the conservatives, quite striking, trying to put themselves on the side of consumers rather than the big energy providers. the other thing that is striking is that it has a ring of familiarity about it. why? well, here is the labour manifesto from
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two years ago. labour will freeze energy bills until 2017, ensuring they can fall but not rise, and will give the regulator the power to cut bills this winter. the conservatives seem bills this winter. the conservatives seem to have done a bit of a cut and pastejob. seem to have done a bit of a cut and paste job. the seem to have done a bit of a cut and pastejob. the idea was popular when it ed miliband floated it, conservatives decided to take it on board conservatives decided to take it on boa rd two conservatives decided to take it on board two years on. they say it is different and more subtle, it is less crude. but the similarities are pretty striking. the question is, will it be a vote winner and is it a promise they can keep? they will hope it is, that is the short answer to the first question. in terms of whether it is something they can keepin whether it is something they can keep in terms of a promise, this is where it gets a bit complicated. it would involve the regulator, of common. there will have to be a consultation. —— of common. if there are variations in the wholesale price, bills could still rise and fall. the extent to which consumers
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will notice instantly, we will have to wait and see. when we get news about the ma nifesto, when we get news about the manifesto, we'll fill you in. if you wa nt manifesto, we'll fill you in. if you want more details on the energy story, you'll find it on the bbc business live page. it has details from labour, of course, as you heard from chris mason who already proposed it in a previous election campaign. this is business live. today we're focussed on south korea. in a few hours we will find out who the next prime minister will be. we have been looking at what influence business has on politics in the country. let's look at markets quickly to
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bring you up—to—date. in europe, they were up by a quarter of a percent when we last looked. we'll bring you the numbers later. the numbers are on the screen. that's what europe is doing. so details there. as you can see, another rise in the cac and the dax. imagine losing your child at a theme park — something most people would rather forget. but witnessing another parent's panic resulted in our next guest giving up her career in investment banking to become a tech entrepreneur. last year, colleen wong launched a smartphone watch, the gator, it allows parents to keep track of their kids, without having to give them a mobile phone. but colleen says being a start—up boss is not glamorous. as well as running a company,
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she is a busy mum caring for two kids. to keep costs down she employs two flexible staff who look after it and social media marketing, and three advisors who are friends with start—up experience. so far, the business has received no outside investment yet, but colleen is looking at crowd—funding. with me is colleen wong, developer of the gator watch and founder of child tracker firm, techsixtyfour. explain how the gator watch works. so it has a button here that can call mum or dad or up to ten other members of the family and it is a tracker as well. parents can download the gator app and track where their child is and uses gps when the child is outdoors and wi—fi when the child is outdoors and wi—fi when it is indoors. it is something kids would probably want to wear. we
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touched on there why you saw the need for it. talk us through the moment when you realised this could bea moment when you realised this could be a great product?” moment when you realised this could be a great product? i was with my two kids at a farm park and i witnessed a mum running around looking for her five or six—year—old son. . . looking for her five or six—year—old son... it wasn't me, was it? that mum could have been looking for my child and it does cause a moment where your heart stops for a few minutes. in terms of how this works, you put the sim in yourself. so, if we we re you put the sim in yourself. so, if we were to purchase this watch, we have to come to you to get the sim and to get it up and running and it links up to any mobile network wherever you happen to be, vodafone, 02oreeor wherever you happen to be, vodafone, 0 2 or ee or anything? no. i've done it this way. as a parent, we don't have that much time. i wanted to make it, easy solution for parents when they buy the watch, they sign up when they buy the watch, they sign upfor when they buy the watch, they sign up for the service plan online and it connects within 2a hours. up for the service plan online and it connects within 24 hourslj up for the service plan online and it connects within 24 hours. i guess it connects within 24 hours. i guess it varies where you are in the world. we posed this question at the
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start of the programme, could kids fig own- 50. and about on their own. so, when they want to give there. when they think about giving their child a sn0n, that increases other worries, access to the internet, too much gaming, too much screen time. so what's the happy medium? i think my solution offers that. you can stay connected, but you don't have to have them using a smartphone and getting access to too much information. the difficulty i have to say, my children haven't got
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smart devices, but my son who is nine, whoi smart devices, but my son who is nine, who i might get one of those for because he is all over the shop and wild and i'd love to know where he is half the time. he would like an apple watch and he would want to swipe around and play games and do all this stuff and that doesn't provide that. i would have a job convincing him to wear that, i think? no, i agree. and that's the thing, it's trying to keep that on a child. what i'm trying to do is work with various partners to make it more exciting for children. so when idomy more exciting for children. so when i do my crowdfunding and when i raise funds licensing would be something i would be looking at. so iimagine something i would be looking at. so i imagine this watch with the strap, with star wars on it. something to keep the child interested as well. a word about your background. investment banking to creating watches for kids. join the dots for us. watches for kids. join the dots for us. 0k, watches for kids. join the dots for us. ok, so i used to work in foreign exchange sales. i left the business
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to have children. and then yeah, that was it. that light bulb moment came when i took my kids to the farm. have you ever looked back? no, i love what i'm doing. you look after the children and try and run this company at the same time?|j this company at the same time?” have an amazing childminder, but yes, it is a juggle every day and i don't have much sleep. but, it's amazing and exciting and i love every single minute of it. you're wide awake on this show. thank you for coming in. interesting. thank you. here is a reminder of how to get in touch. we wa nt we want to hear from you too. get involved on the bbc business live
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web page. 0n involved on the bbc business live web page. on twitter we're at bbc business and you can find us on facebook. business live on tv and online whenever you need to know. today, your comments on the smart watch for tracking kids. a viewer says, "honestly, it sounds like a breaking of trustment don't spy on your kids when they say they can go somewhere without you." i love annie, "just give your kid the watch, it can set an alarm for bedtime so you don't need a baby—sitter." bedtime so you don't need a ba by—sitter. " tea bedtime so you don't need a baby—sitter." tea being dinner, not a cup of tea for the childminder. if it is the north of england, it is tea. tea is what? tea is your evening meal. it's not something in here? no, that's a brew! 0k. just to be clear. it is a
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builder's. jeremy cookjoins us. what's tea for you? it's a hot refreshing drink! let's talk wall streetjournal. why are the gas prices changing and it is to do with computers? it is. it is to do with software that petrol stations and these big oil companies are using to make sure that they are constantly matching the demand this they are seeing on the fore courts with higher prices. and only cutting them, it seems, when demand is very, very low. now, you normally see that with this higher level of competition, classical economics, would say that the prices will therefore have to fall, but actually, in the netherlands, it's where most of this seems to have been trialled just outside of rotterdam, we're seeing prices rise and people are paying eight cents more per gallon. some allegations of collusion. they look at what
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eve ryo ne collusion. they look at what everyone else is doing, they're charging higher and i'll put mine 7 charging higher and i'll put mine up? there is probably evidence of collusion in similar industries which are low margin, very, very high volume, but also, you know, things like groceries and food. the algorism story is something we talk about a lot in markets and algorisms, emmanuel macron win by french stocks, we are starting to see that in real life. so yourjob will be redundant soon? yes, i'll go and sort out a smart watch company. the independent has got a story that our economics editor has written about as well. this chap here, matthew taylor who is leading a review. this is to do with the rise of the gig economy and uber and we
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are of the gig economy and uber and we a re less of the gig economy and uber and we are less fulfilled? yes, whether you come home and that's your day done or whether you are having to do more and more hours to bring the cash in to pay the bills. most of the western economies are still seeing that, unemployment is at 30 year lows, nearly 40 year lows here in the uk, but the level of pay that people are getting and obviously the level of gdp that you would assume with everyone in work for nine hours a day for example isn't actually coming through and whether we are starting to see these zer hour contracts, you look at places like jd sports and whether we need to see a more political change for that moving forward. jeremy, thank you very much. that's all from us today. same time same place tomorrow. yes, i will have my statistic ready. good. i'll look out for it. see you soon. hello. blue skies will not be the
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order of the day right across the british isles, but as has been the case in recent days, with the high pressure still dominating our weather, it will be dry across the greater part of the british isles. not as many isobars on the chart and the good news for the eastern side of scotland, and the north—eastern shores of england is that the breeze is off—shore rather than on shore and that will help to boost your temperatures, but you will notice on the big picture across central and eastern parts there is still a lot of cloud to be had. the cloud probably at its thickest across the far north of scotland. so the odd bit and piece of rain on the breeze for 0rkney and shetland. in the south, plenty of sunshine across the heart of scotland. in northern ireland out west somebody will see a temperature of 17 or 18 celsius. it
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is once we drift back towards the midlands and east anglia and parts of the south—east where we will keep a lot of cloud and there is a hint of on shore breeze around about either side of the wash. so your temperature there nine or ten celsius. 0vernight, clear skies temperature there nine or ten celsius. 0vernight, clearskies for the most part, say for the north of scotla nd the most part, say for the north of scotland where you continue to see a little bit of rain. temperatures dipping away in the major towns and cities. in the countryside, if you're prone and keep clear skies for any length of time, your temperature come the dawn could be around two or three celsius, but that will convert into a glorious start to the day. pras more in the way of cloud filtering into northern and eastern parts of scotlandment the rain still there. elsewhere, not much in the way of breeze. inland areas, 16, 17, 18 celsius, but if your lawns and fields are beginning to look like this and you're concerned about the lack of rain. i offer you prospect as early as thursday in the south of seeing one or two heavy downpours as this weather system works its way in from
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the south. elsewhere, it's another dry day with variable amounts of cloud and a high of 17, 18, possibly 19 celsius. thursday night and into the day on friday that we'll push the day on friday that we'll push the prospect of some heavy downpours of rain, gradually working their way up of rain, gradually working their way up across of rain, gradually working their way up across the greater part of the british isles and that leads us on into a rather more unsettled look to the weekend dominated by low pressure rather than high pressure. so you might actually get to use your wellies! bye—bye. hello, it's tuesday, it's 9 o'clock. good morning and welcome to camborne in cornwall — we are here to talk to people about the things that matter to them before the general election. i have no hope in it, at all. and i'm scared what it's going to be like for my daughter to grow up in a place like this, where nobody cares.
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brexit — what brexit? people here tell us that low wages and lack of affordable housing are top of their priority list. we are going to talk to more people about that. get in touch, what are the most important things you care about in this election? hello.
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