And are on the rise. And with the nissan scandaljust the latest set back to take the shine off japans manufacturing reputation, well assess the damage with our Asia Business correspondent Karishma Vaswani wholl also talk us through a big week for china. And as more than 100 cities bid to be the location of the new Amazon Headquarters, we want to know would you want the amazon hq near you and if so how would you sell your city . Just use the hashtag bbcbizlive. Hello and welcome to business live. We start in spain, a country battling to stay in one piece. As you have been hearing, the government says it will impose direct rule on the region of catalonia and suspend its autonomy over the weekend following threats by the Catalan Leader to unilaterally declare independence. The crisis has been escalating since catalans voted to break from spain in a referendum on 1st october. Now, despite the poll being declared illegal by the spanish court. It is already taking an economic toll. Catalonia accounts for around a fifth of spains economy, despite being home tojust16 of the population. Thats one of the reasons many catalans think theyd be better off independent, but it also means the crisis is being felt nationally. This week spain cut its gdp growth forecasts for next year to 2. 3 from the 2. 6 it was expecting. The uncertainty means that over 700 companies have transferred their legal bases out of catalonia to other parts of spain since the vote. Equally worrying for catalonia, one industry body says tourism is down 15 so far this month compared with last year, with reservations for the rest of the year down by a fifth. It says the crisis has had a far bigger effect on tourism than augusts terror attack in barcelona and could cost businesses over 1 billion. Professor Angel Saz Carranza is the director of the centre for Global Economy and geopolitics at barcelonas esade business school. Hejoins us from minorca. Thank you very much forjoining us today. What do you think is going to happen this weekend . Well, i think u nfortu nately happen this weekend . Well, i think unfortunately there is probably going to be the start of the process of 155, taking control, of the Regional Government and i think were going to continue seeing businesses responding to this Political Risk as it materialises slowly into this legal vacuum and probably social unrest. This 155 article goes ahead that has been a huge back fire for the Catalonian Independence movement because they have gone from having autonomy in the region to madrid taking that back altogether . Exactly. So, its a big gamble on both sides. So, i think it depends how exactly this will unfold and thats why we are seeing the slow tit for tat movement. Neither the sides are sitting down resolving this. So what we can expect is both a backlash for the catalan independents as costs sta rt the catalan independents as costs start rising and probably for the spanish government. You heard the numbers we were talking about there, not just has catalonia numbers we were talking about there, notjust has catalonia been hit in terms of tourism falling and in terms of tourism falling and in terms of tourism falling and in terms of businesses looking to move their headquarters out of the region, for spain we saw the gdp figures reduced. Do you think anybody expected that could be a consequence . Well, i think many of us consequence . Well, i think many of us expected this. There are two, both sides or probably polls didnt expect this to happen. 0ne thinking that independence could be smooth and cost less and the other side thinking that they could enforce unilaterally a legal order without taking into account the region and 01 taking into account the region and or part of the region. I think businesses have been slow in understanding the risk and thats why were seeing in this very last month suddenly this reaction after business being as usual for the past year and a half. So, and from now on i think we will start seeing the real costs. You talk to Business Executives here in barcelona and spain and they are telling you investments are frozen right now. In spain in general and particularly in catalonia. Where can the catalonia Independence Movement go from here . Well, the only strategy they are working on right now is to have such a strong backlash and response from Central Government that it could strengthen their cause. 0n the other hand, i imagine the Central Government is playing the same cards, but on the other side, trying to make sure that Independence Movements is charged with the costs that we are suffering. 0k, professor, thank you very much for your time. Thanks. Lets take a look at some of the other stories making the news. European Union Leaders are set to consider britains request for brexit talks to move on to the future of trade. The uks Prime Minister theresa may urged them to do so over dinner on thursday night and said she needed a brexit deal she could defend to voters. German chancellor, angela merkel, struck an optimistic tone on negotiations but warned that more work was needed before trade talks could begin. Amazon says more than 100 cities have expressed an interest in hosting its new and second northern american headquarters. Thursday was the deadline for proposals. Amazon plans to invest 5 billion and create 50,000 newjobs at the new headquarters, which will be a full equal to its seattle base. Amazon plans to invest 5 billion and create 50,000 newjobs at the new headquarters, which will be a full equal to its seattle base. The investment will also create tens of thousands of other jobs in construction and the surrounding community. The german car maker daimler, whose brands include mercedes, has seen a sharp fall in profits. The company made just over 4 billion in the three months from july to september but that amount to a 14 fall. Its partly because of the costs of a recall and the clear up of diesel engines. Lets stay in the region where asian shares shrugged off early sluggishness and gained on friday with japans nikkei share average rising for a 14th straight day. Its best winning streak since 1961. The dollar rose after the Us Senate Approved a budget blueprint for the 2018 fiscal year. That could pave the way for republicans to pursue a tax cut package without democratic support. More on that in just a moment. The mscis broadest index of asia pacific shares outside japan which scaled a 10 year peak on tuesday, was up 0. 3 , but still down slightly for the week. Meanwhile here in Europe Markets are taking their cue from asia and have opened the session up. Michelle has the details about whats ahead on wall street today. As the white house ponders who should be the next chair of the us federal reserve, the current incumbent janet yellen is set to speak at the National Economists club annual dinner. Wall street will be watching the clues about the future path of interest rates. The central bank is in the midst of a broader debate about inflation. Any comments about that could shape expectations for the future direction of rates in december, and the possibility of an increase. Meanwhile, the Earnings Period continues this friday, the makers of pampers diapers and gillette razors Procter Gamble reports its earnings for the first quarter. The company, which recently beat efforts by activist investor nelson peltz to win a seat on its board, is likely to report a rise in quarterly net sales. Also, watch out for Third Quarter profit figures from the likes of ge honeywell and schlumberger. Joining us is lucy macdonald, chief investment officer, Global Equities at allianz global investors. Good morning. Great to see you. Thank you for coming in. As i was saying earlier, over in asia we saw this sharp rise again on the nikkei in tokyo. Again, rising for a 14th straight day. Its best winning strea k straight day. Its best winning streak since 1961. Whats behind this and is a correction due any time soon . Its playing catch up with other asian markets and other markets around the world and it has been a very strong year for all equity markets. So, what were looking at to see how long can that continue. Volatility is extremely low. Valuations are quite high and we are going into the earning season 110w we are going into the earning season now which will be distorted by some of the hurricanes that we have seen. So, there is potentialfor a little bit more uncertainty as we go through this next couple of months. And at the same time, you have got politics in the background which is a lwa ys politics in the background which is always got a potential for. Politics in the background which is always got a potential for. We have got that election on sunday in japan, havent we . We have got the election in japan and japan, havent we . We have got the election injapan and everything thats going on in europe. We have day by day, anything could happen in the us. So there is lots of potential for volatility to rise from low levels at the moment. Talking of politics over in the states. Yes, the Us Senate Approved a blueprint for the budget. Explain why thats significant and that impact it could have on the markets . It is significant because it allows the tax reform to be passed without both parties. And so, this reconciliation needs to go through the house and then that sets the backdrop for the discussion about the tax bill. Now, the importance of that tax reform is that this is a huge focus for the administration, having really failed to deliver on much else and this was a key pa rt to deliver on much else and this was a key part of the campaign promising. So the president is very focussed on it. The administration is extremely focussed on it and if it mansion to get through, it would give a boost to certainly growth projections and maybe a last boost to equity markets. So from that point of view, it is extremely significant. Why do you say a last boost to equity markets . Because we have had a very, very long period of strength in equity markets. This could be the last last horah. We have seen a lot of hurricanes in recent history. To what degree has that affected earning seasons . We have had numbers out from nestle and unilever and they seem to be impacted . It is early stage of the earning season, but looking back at last time when there were a lot of hurricanes, 2005 when we had katrina, there appeared to be a significant impact, but a short lived within. For a couple of months you can see disruption to energy, transport, chemicals. In this case because of where they are, it could have an impact on medical technology and procedures because its in florida. So, those are the area where youd expect to see some impactand area where youd expect to see some impact and Food Manufacturing not so much, but distribution can fct any large company. It could have a significant distortion of the earnings in the short term, but not have a longer term impact. Lucy, thank you, you will be back later to talk us through the papers. Still to come with nissan adding to the problems of the made injapan brand well assess the damage with our Asia Business guru Karishma Vaswani. Youre with business live from bbc news. The Technology Behind video games has changed a lot in the last a0 years. A new exhibition at the British Science Museum is looking at how the industry has evolved. Tim muffetts been to take a look. Sta m py stampy is a star thanks to mine craft. He uploads the games he played to youtube and offers advice. Joe was born in 1990, so what does he make of this celebration of retro gaming . I was kind of born i guess right in the middle of gamings history and it is only as ive got older that ive become interested in the old type. This is manic mantra on the sinclair spectrum . You have to use your imagination and go into fa ntasy to use your imagination and go into fantasy land more than modern games which are High Definition and realistic. What do you make of this game . think its actually quite fun. Back then they would have found it really exciting. I remember those days well. So this is sonic the hedgehog. This is something im more familiar with. People talk about screen time. The same concerns were raised when this was out . It was probably worse. Back playing some of the older games because it was normally much more of a salutary experience, unless you have got your brother or sister or your friends, you are have got your brother or sister or yourfriends, you are mainly have got your brother or sister or your friends, you are mainly playing by yourself. 0ne your friends, you are mainly playing by yourself. One of the biggest changes the gaming industry had is the ability to play online. Its not just the playing online, it is the community. Someone might be starting ata community. Someone might be starting at a new school and once they found out that someone else likes a game they like, there is a million conversations they can have. There are down sides. Som people are worried that kids can be contacted by people who shouldnt be contacting them . There is parental controls. Not every parent knows about them or putting them in place and thats where the risks are. That was mine craft expert stampy talking to tim muffett. This is the people who would get a contract with a new phone. But then after the two yea rs, a new phone. But then after the two years, instead a new phone. But then after the two yea rs, instead of a new phone. But then after the two years, instead of taking your upgrade you continue to pay the amount. They say some people are paying £20 £30 a month which is too much. All of that on the bbc website. Spanish businesses are feeling the bite has the government is set to ta ke bite has the government is set to take control of catalonia. The Madrid Stock Exchange has opened slightly down. Lets have a look to see how european markets are getting on. They are taking their cue from a where we saw the nick cave rise for its 14th straight day. We saw the nikkei rise for its 14th straight day. All markets beginning the session on the up. Now its been a big week for business in asia. China is shaping its future as the worlds second biggest economy and injapan the problems are deepening for a Manufacturing Sector that certainly used to be regarded as one of the best in the world. 0ur Asia Business correspondent Karishma Vaswani is in singapore. Good to talk to you. Lets begin with this latest news causing problems for the made injapan brand. The nissan cheating accusations, this idea that they have been fabricating specifications on some of their parts for a while 110w. On some of their parts for a while now. Yes, you know this is something that has dominated the news in asia this week. It comes after a litany of scandals in corporate japan. Today we are hearing that japanese officials are saying its unclear how long these problems have been going on at nissan. Thats japans second largest car maker. Investigations are continuing as we speak. To remind our audiences, nissan is suspending production at six of its domestic car plants for two weeks. These make cars for the japanese market. Thats about 6 of global production. They are looking at how it was possible for uncertified technicians to do the final checks on these cars before they headed onto the streets. Real issues of Corporate Governance there. Its notjust nissan, theres been issues with toshiba and others. Japan is so dependent on its exports, could we be seeing a shift in peoples attitudes towards the made injapan in peoples attitudes towards the made in japan label . Ive spoken to a number of observers who have watched corporate japan the decades. Its hard to figure out why is it that we are seeing this consistent big names injapan coming out with accounting scandals like we seen at toshiba. Kobe steel saying its faked data about its steel products. All of these Companies Used to be pa rt all of these Companies Used to be part of the glorified made injapan brand. Analysts are saying part of the problem is the japanese economy started to falter after the 80s. As a result a lot of these Iconic Companies had to figure things out again. They had to start from scratch and played the competitive game, especially from the massive rival next door in china, with a lot of Chinese Companies coming in and taking business away from japan, that has put pressure onjapanese companies to perhaps cut corners, and try and become more efficient by not paying as much attention to Corporate Governance. It there has been a Reputational Risk which is what we are seeing injapan. Been a Reputational Risk which is what we are seeing in japan. Its been a big week for chinas economy as well. The congress kicked off and we had a huge speech and then the latest gdp numbers. Talk us through whats been happening in china and. This was the big coming out party for Chinas Congress party, it was a chance for the Prime Minister to say its time for china to take its rightful position on the global stage. He spoke for more than three hours. He held forth about his vision for the chinese economy and the chinese position on the International Stage. He talked up the success. I think what was interesting there was against this backdrop we had a sense of how powerful china sees itself. It wants to have a say on the International Stage and is already having an economic influence, especially in this part of the world where it is the Major Trading partnerfor most of asia. Its the reason asian economies have done so well over the last decade. What happens in china with regards to growth is really important for the rest of asia. I think youll continue to see this trend. Thank you. Now lets turn to adelaide, australia where the last ever car to be built in the country has just rolled off the production line. After almost 70 years the iconic aussie car maker holden which is owned by General Motors is finally shutting up shop. The bbcs Hywel Griffith reports. Sold as the car a whole nation should love, holden has for decades traded on being born and bred in australia. In fact, since the 1930s, this all aussie brand has been american owned. General motors was enticed by the Australian Government to kick start its domestic motor industry, and give australians a car they could call their own. For decades, holden and ford battled it out to be the dominant brand in australia. If you wanted a big family car, those really were your options, until eventually asian Car Manufacturers came along and offered a cheaper alternative. Now, holden production has reached the end of the line here, following ford and toyota in pulling out of australia. The holden brand will continue, but using imported cars. Some argue the countrys motor industry has been stalling for years. This commercial is brought to you by football, meat pies, kangaroos and australias own car. Holden says building cars in australia is no longer economically viable. It seems unlikely that other companies would be willing to take the risk, and so this really could be the end of the road for australias own car. Lucy has rejoined us to talk through the papers. We asked if you would like the new Amazon Headquarters in your city and how you would sell it. Lots of you have been getting in touch. Just read out some of the tweets, how many of these amazon jobs will be zero hour contracts . Thats a good question. Why doesnt amazon do something to support local businesses . No thanks, rents are too high already, also trafficjams. Not until they start paying tax properly. Thats interesting, the tax issue not going through. The story is in the Seattle Times and other publications. What is this about and why do cities want amazon to come . These are highquality jobs, this isnt a Distribution Centre where a lot of the social issues could appear. This is talking about high quality, paid jobs. 0ne of the things they are looking for isa of the things they are looking for is a good education system, as well as transport. They can afford to be really picky in terms of choosing the base. The Seattle Times has a funny list of everything they are looking up from our quality to commuting time, everything. Another story, the Goldman Sachs boss sent a tweet against the city. This man doesnt tweet much. Just left frankfurt, really enjoyed it, good because ill be spending a lot more time there, hashtag brexit. Is that a warning . They have already chosen frankfurt for their european hq. Theyve voted with their feet. They still have a big presence in london. They do but they have chosen that as their headquarters and the city is booming. Thank you very much the joining us. Thats it from business live today. Have a nice weekend. Its going to turn pretty rough over the next 2a hours. Storm brian has been brewing in the atlantic over the last 2a hours. You can see that cloud associated with the storm. Further ahead of that, lots of cloud across the uk this morning with outbreaks of rain. That rain will tend to clear away, things should gradually improved through the afternoon. There will be some sunshine especially across scotland, northern ireland, wales and southern areas of england. Still a bit of rain hanging on in the far east of england. Then towards the west, will see the cloud increasing with outbreaks of rain moving in. Maximum temperature is getting up to 14 15. This rain in the west is associated with storm brian. It will move gradually further east with heavy pulses of rain for a time as we go into this evening. The winds are going to whip up as we go into saturday. Here is brian, this deep area of low pressure eventually pushing into scotland. The isobars are quite close together and its around the southern and Western Areas that we will see the most impact from brian. Gusts of wind of 6070 impact from brian. Gusts of wind of 60 70 miles an hour in exposed areas. Some pretty big waves around these coastal stretches. Take care, be aware if you are going around the coastal areas, with high spring tides there is the risk of some coastal flooding. Even further inland across southern parts of england, around the north west of england, around the north west of england as well, wind of a0 mph could be a bit disruptive. They could be a bit disruptive. They could be a bit disruptive. They could be branches down because of that. Weve got some heavy rain and showers moving across many parts on saturday. Quite an unpleasant autumnal day for many of us. Temperatures up to 13 15d. Through saturday night into sunday, storm brian moving out into the north sea. While weve got lots of fairly tight isobars, close lines, still quite breezy conditions on sunday. It should be much improved compared to saturday. There will still be a few showers around on sunday as well. Maximum temperature is 12 1adc. Lots going on with the weather, stay tuned to the forecast on our website. Goodbye. Hello. Its friday. Its 9am. Welcome to the programme. The Prime Minister theresa may is in brussels shes urging eu leaders to create a dynamic in the brexit talks so that both sides can move forward and Start Talking about trade. But just how much progress is being made . Lots of people are worried about no deal in the uk. Whats your message to people who are worried about that . Inaudible the Prime Minister will be speaking in the next half hour and well bring you that live. In the next half hour and well carolyn rossjones was born prematurely in 1973 and when her mum was told she wouldnt survive she fled the hospital. Carolyn did survive, was adopted and moved to america. She says the impact on her life has been massive
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