Transcripts For BBCNEWS BBC Business Live 20180115 : compare

Transcripts For BBCNEWS BBC Business Live 20180115

And we will have all the details later. After strong grazes on european markets and especially in the united states. But that is what is happening in europe right now. We will have the details for you. We will have the details for you. And there might be white collar and blue collar jobs, but what about the booming market for no collar workers . We meet the woman cashing in on recruiting top talent to the creative sector. And given the scale of carillions activities and number of staff it employs, should the government step in to rescue the firm . Let us know your thoughts. Use the hashtag bbcbizlive. Hello and welcome to business live. And you can join and you canjoin the and you can join the debate this morning. It is a story which will affect many thousands of people and the world so lets know your thoughts on carillion. The uks second largest construction firm, carillion, is to go into liquidation, threatening thousands of jobs. The firm is involved in Major Projects like the hs2 high speed rail line, as well as managing schools and prisons. Carillion employs 43,000 staff worldwide. That is why it is of such significance. Including 20,000 staff in the uk. The moves comes as the company failed to reach an agreement with its lenders and the government. Despite this, carillions Public Sector services will still continue to receive funding. Sally. Thanks very much. With me is our business editor, simonjack. What do you know . Carillion is not a household name but about 200 years worth of british construction history. Tarmac, mcalpine. Wimpey. All that stuff. This is a very major company. And very significant. It had too much debt. Ever sincejuly last year when it did not. It gave a profit warning, we knew it was struggling, but it continues to win government contracts. A lot of eyebrows were raised and tough questions for the government as. Today, we learned they are going into compulsory liquidation. That is a different term to administration. They are doing that because the godman to continue to pay Public Service staff and they could not just put it into a pot to be shared up just put it into a pot to be shared up by just put it into a pot to be shared up by the creditors, it had to be aimed at the hospitals and the schools and the prisons where people we re schools and the prisons where people were employed. It is a big political question about whether it is a good idea to award these vital Public Service contracts to private companies. But first, people will be concerned about their jobs. Companies. But first, people will be concerned about theirjobs. 20,000 in the uk and another 23,000 elsewhere around the world. The government has said if you are an employee of carillion, you should go to work today because the government will pay your wages. What i think will pay your wages. What i think will be the biggest impact ultimately of this will be on the army of subcontractors. 0ften, carillion is the lead contractor and they have dozens of smaller and Medium Sized Companies working for them. They have not paid them, but they usually pay their suppliers of four months and a lot of those people will not get paid and that could have a big knock on effect. Lot of criticism that it has got too big, too quickly. By buying up all these firms around the world. Is there any truth in that . Sometimes rapid growth can make a company exposed. It is a Risky Business contracting and you take on a big project and you promise to deliver on time at a price. If there are problems coming you have to take the cost of those. Carillion had a couple which went bad in the uk and they were in the habit of recognising revenue from these contracts before they knew how the contracts before they knew how the contract has gone and they are being investigated for that. They are also being investigated about how weak they knew the company was when it made certain statements to the Stock Exchange. Two separate investigations. You say difficult questions for the government with regards to private finance initiative and that kind of thing. But also, carillion got really big and very lucrative contracts with the government after they had issued profits warnings and many will be asking that question. A lot of people will ask that question. Chris grayling the transport secretary, who was transport secretary at the time, he will say, we built these contracts in such a way so if one of the three partners went bust, the other two could cover it. Other people will say what the government was doing was giving it contracts help it out a bit because basically, it knew it had a lot of debt and the banks do not want to throw more good money after bad. If we give them the contract, structure it in such a way that if they go bust, it does not matter, can they take that to their bank and they will say, we can give you more money because you have revenue coming in . Just briefly, as far as the revenue coming in . Just briefly, as faras the uk revenue coming in . Just briefly, as far as the uk is concerned, the government said, go back to work and we will ensure your salaries. But what about those who Work Overseas . That is a really difficult question because some of their problems came from overseas. One of their biggest customers will saudi arabia, a lot of work in the middle east. When the oil price fell, people started tightening Purse Strings and a lot of that money did the dry up. I cannot give you a definitive and about what happens to stuff overseas, but i understand it is a very worrying time for those people and people in the uk. Thank you for yourtime, and people in the uk. Thank you for your time, simon. There and people in the uk. Thank you for yourtime, simon. There is and people in the uk. Thank you for your time, simon. There is much more on the website and we will show you that later. Lets take a look at some of the other stories making the news. Sales of volkswagen cars rose to a new record last year thanks to rising demand in china and the americas. Despite the emission cheating scandal. The company overtook toyota as the worlds best selling carmaker in 2017. Its on track to retain that spot. The French Dairy Company lactalis says it will pay damages to the families affected by its contaminated infant formula. Authorities reported that around 35 children became ill after consuming baby formula made by the company. More than 12 million boxes of powdered baby milk have now been recalled in 83 countries. Japanese tech giant softbank is planning to list its mobile phone business in tokyo and overseas, according to the nikkei newspaper. If it goes ahead, the listing would be one ofjapans biggest ever initial public offerings. A floor has collapsed at the Stock Exchange in indonesias capital, jakarta. Pictures posted online show the ground at the exchange covered in debris. Karishma vaswani is in singapore. I was looking at those pictures earlier, pretty dramatic of what has happened in jakarta. Yes, it has been chaos and confusion. Ever since that collapse took place around lunchtime, local time. In that collapse took place around lunchtime, localtime. In the that collapse took place around lunchtime, local time. In the last few minutes, we have received confirmation from our bureau in ja ka rta confirmation from our bureau in jakarta that Indonesian Police are saying as many as 72 people have been injured as a result of the colla pse been injured as a result of the collapse that took place at the building that houses the jakarta Stock Exchange. And a number of other offices including the world bank and some small embassies and oil and gas companies. What we understand to have happened is that the mezzanine walkway connecting the two towers of the building that the ja ka rta two towers of the building that the jakarta Stock Exchanges in, that is the part of the building that appears to have collapsed. Police in ja ka rta appears to have collapsed. Police in jakarta have ruled out any suggestion there were terrorists or militant networks involved in this collapse. They have not found the cause of how this occurred and why it happened. We also understand that in the last hour, people have been allowed back into the building, but they are not allowed at the level, they are not allowed at the level, the mezzanine walkway level, where this damage has taken place. The ja ka rta this damage has taken place. The jakarta Stock Exchange itself has resumed trading in the last hour and one of the spokespeople has told us that the reason for that is that all of the employees of the Stock Exchange appear to be safe and none of them have sustained any injuries. But a sizeable number of people injured. 72 as i said earlier, and they are being treated in hospitals around the centre of the city, where this collapse took place. Remember, it is an extremely busy part of the indonesian capital. The building itself is one of the most prestigious across the financial landscape in jakarta. Prestigious across the financial landscape injakarta. It stands right opposite a busy Shopping Centre in jakarta, an right opposite a busy Shopping Centre injakarta, an area which we understand now has been cordoned off by police and ambulances. Thanks very much. I know you will stay across that story as it develops. For now, thank you. Us markets continued to go from strength to strength last week, building on those strong gains of last year. Stronger corporate earnings and a strengthening us and Global Economy boosting optimism. This is the picture in europe, not echoing what we have seen in the united states. Starting the session a little lower. Concerns about the strengthening euro and that would hit their earnings overseas. The ftse100, though, got a boost from that move upwards in oil prices. But starting a new week following the events in europe. Thank you. Joining us is james bevan, from ccla investment management. Nice to see you, james. It is nice to be here. In london, some of the competitors of carillion are doing quite well today. Balfour beatty, their shares are up. Kier group. We talk about the disaster of carillion, it will have a huge impact on many jobs carillion, it will have a huge impact on manyjobs and parts of government, but there are already share prices on the move upwards. Suchis share prices on the move upwards. Such is capitalism, im afraid this isa such is capitalism, im afraid this is a destructive process. But plenty of companies will pick up the contracts carillion has had. We do not know the ripple of the failure of carillion in terms of the suppliers and contractors. We will have to wait and see. What you make it all . For a very long time, there have been lots of signs that carillion has been in trouble, so it moved to delay the payment of money to its suppliers. Some years ago. People were saying, this is a sign ofa people were saying, this is a sign of a company that is in the first stages of significant trouble. A lot of people said, no, that cannot be so. Of people said, no, that cannot be so. Look at the scale of its contracts. But they were on wafer thin margins, a lot of cross subsidy. Business did not generate enough money to pay the debt. And we have to have a really worried concern about the pensioners. Because part of the deficit carillion has is 600 million in deficit to its pensioners. Away from carillion, what else are you looking at . Us markets still continuing an u pwa rd at . Us markets still continuing an upward spiral since the end of the less year. European markets are not following the same path. The long term market is in place because as you have identified, we have relatively synchronised Global Growth which is stronger than anticipated. Inflation remains low and bond deals remained low and people Needs Companies that have solid and sustainable growth, many in the united states. We will watch closely and i am sure we will talk again. For now, thank you. James wilby back soon. Still to come a labour of love well be speaking to the founder of a company which helps Creative Professionals find their dream job. Youre with business live, from bbc news. Driverless cars are quickly becoming a reality. But how can we make sure the uks roads are ready for them . A new competition is appealing for ideas and offering winning entrants £30,000 to develop them. Anna marie baisden, head of autos at bmi research, joins us now. It is nice to see you. What you make of this idea . It is a very good idea to get as much input as possible. It is certainly a big issue that will be deeply the most difficult period when you have driverless and human driven cars on the roads. To get as much input as possible, i think, is a great idea. Because it is something that is very new to the industry, nobody is used to it, so why not get as many ideas as possible . As you say, it is great to get as many ideas as possible from as many sources. The question is, how do they pick the winner . It is an attractive price, it is going to be difficult absolutely, there will be a range of criteria we will be looking for so safety is going to be key. You will be having autonomous and manually driven cars and it is really important they can work around each other in terms of speed limits and knowing what other cars will be doing. Also, one of the Biggest Challenges that came up in the brief about the competition is that you need solutions that can work on both small president ial roads and motorways. So there are a lot of big challenges. And before you go, let me get your predictions. They may be putting you on the spot, but wait you think we will be seeing d riverless ca rs but wait you think we will be seeing Driverless Cars on the road . but wait you think we will be seeing Driverless Cars on the road . If you are looking for fully autonomous, it is probably a block further down the line than people think. We are still facing big challenges about how to get them working and we will have that transition period. You could be looking at 20 years or more tap fully autonomous, if it comes at all. It is always good to see you, thank you for your time. Interesting competition with £30,000 up for grabs. Get your ideas in a lot of you getting in touch about the news that carillion is in liquidation. We asked should the government step in given the scale and scope of the firm . Your responses are no. You make the point that other businesses have been allowed to fail so this one should be no different. Keep your comments coming in. You can use the hashtag, bbc biz live. Youre watching business live. Airbus saying it booked 1109 aircraft orders last year and saw a Record Number of deliveries of 718. There is a close rivalry between airbus and boeing. So, the two going head to head in terms of who can make the biggest sales. Who can book the biggest number of orders. 1109 for airbus overtaking arch rival boeing, booking, we sayjust, 912 orders. Expensive big planes at that. You talk about the rivalry and in term of delivery which is another way of measuring this, the finished planes, boeing was in the lead. We must give them acclaim. 763 aircraft delivered to customers last year. Which is the most important. Delivered to customers last year. Which is the most importantlj delivered to customers last year. Which is the most important. I think it is new orders for whats coming up. Our top story the uks second largest construction firm, carillion, is to go into liquidation, threatening thousands of jobs. There are full details on the website. If youre in the market for a newjob, many people will head online to use the Employment Service linkedin. Thats if youre a traditional white collar professional. But what about those working in Creative Industries . There are an estimated 80 million professionals working around the world in so called no collar jobs and matching the right creative jobs with the right people is a business worth 15 billion a year. So to cash in, pipjamieson founded the dots from her houseboat on Regents Canal in london. I want to ask you about the houseboat her business is a job finding platform for the Creative Industries, catering to a new class of no colla r professionals. This year, pip hopes to connect a million Creative Professionals and freelancers, and she recently competed a 5. 5 million round of funding which should help her do so. Joining us is pipjamieson, founder and chief executive for the dots. The name, is it aboutjoining the dots . Is that about where that came from . Join the dots and then connect the dots. Tell us about this, this isa the dots. Tell us about this, this is a two year project on your part. You started yourself and one other on the houseboat and now, it has grown very, very rapidly . Yes, i used to work at mtv and i realised i was surrounded by friends who were working in a very different way that the traditional white collar workforce so we were creatively led and freelancing and adopting portfolio careers and linkedin was not working for us, i wanted to develop a different way for being able to help creators promote themselves online, but connect with opportunities. What are the differences . Why doesnt Something Like linkedin work for cre avetive people . On the white collar you had that traditional cv based career, it would be very much of a job ladder, but the people im surrounded with are working on multiple projects. The way the dots work, you post a project on the site and you tag the teams around the projects. That means we find it good in terms of the trust data we get being able to match employers with people, but people with each other. That means everybody on the project gets a say as it were or gets their name attributed to it and thats really important for freelancers, isnt it, often the freelancers dont get on the credits . Absolutely. If there is an advertising campaign, freelancers rarely get credit. Juniors never get credit. Talking of top senior people, you have got sirjohn hegarty on board, he is the chairman and he put in quite a bit of his own

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