tv World Business Report BBC News January 19, 2017 5:30am-5:46am GMT
this is bbc world news. the headlines: a deadline has passed for the gambian president to step down, with no sign of any change in his position. yayha jammeh, who's been in powerfor two decades, is refusing to leave office and is disputing the election result. at least 50 people have been killed in northern mali in a car bomb attack on a base housing soldiers and members of rival armed groups. a local news agency is reporting that the jihadist group al mourabitoun carried out the attack. president obama has warned his successor, donald trump, not to lift sanctions against russia unless it reverses what he described as its violations of ukrainian sovereignty. he also pledged to speak out in defence of his core values. former us president george hw bush has been moved to intensive care at a houston hospital. he's 92 and suffering from pneumonia but said to be stable. his wife barbara has also been admitted to the same hospital with fatigue. now for the latest financial news with world business report.
then the news review. brexodus fears grow in the city of london, as leading firms warn thousands of staff may now be relocated. plus, breathing space. no arrest warrant for samsung boss jay y lee. but prosecutors vow to continue the corruption investigation "without wavering." welcome to world business report. i'm sally bundock. we'll be live in seoul injust a moment. we'll get the latest on samsung. but first, this. we start here in london, where fears of a costly brexit exodus of banking jobs are growing.
leading firms are now weighing up moving thousands of staff out of the uk, after prime minister theresa may confirmed plans to leave the european single market as well as the eu, the so called "hard brexit" option. so, what have we heard already? on wednesday, the boss of hsbc said he's preparing to move around 1000 of his 5000 london staff to paris. that would mean around 20% of its european revenue leaving the uk, worth several billion dollars. swiss rival, ubs, also told the bbc that 1000 jobs may go in london as a result of brexit, again around a fifth of its workforce. and according to a report in the handelsblatt newspaper in germany this morning, goldman sachs may halve its london workforce, moving 3000 staff to new york and continental europe, a thousand of those to frankfurt. goldman though says it has yet to make a decision on the matter however, some believe this could be the tip of the iceberg as far as uk financialjob losses. back in october, consultants
oliver wyman warned 75,000 uk jobs are at risk if financial companies based here lose the right to operate across europe. theresa may is addressing the world economic forum in davos today, she will also be meeting the bosses of some of the big banks including goldman sachs and jp morgan for private talks. yesterday, pierre moscovici, former french finance minister, now eu commissionerfor economic and financial affairs, taxation and customs, spoke to our economics editor kamal ahmed. he denied the eu would try to punish britain for leaving the eu. it is not about punishment. i said that we need to find a balanced and positive agreement. i said we are
friends and must work together. they even said so in the european parliament this morning in davos. but we must be clear that you cannot have all the advantages of being a member of the club when you are out of the club. 0ur british friends will bleed invented clubs. —— probably. they can understand that. there you. that is one view. and now for another view. 0livier vardakoulias is senior economist at the new economics foundation. the plot has thickened. no surprise at all to hear some of the big banks, global banks, who have big operations in london, are now rethinking. yes. that is because they perceive she has made
unattainable pledges. she will go for a hard brexit, exiting the common market and the eu and also the common union. what they are afraid of, and rightly so, is basically that this will not guarantee the so—called passport writes. explain those rights for those uninitiated in financial services. any bank located, or investment bank, located in the country, has the right to do business in any european country, without needing to have an agreement without needing to have an agreement with individual member states of the eu. that is why, for example, you have many american investment banks based in london. that is because they can do business in whatever european country freely. that will not be the case if the uk does not
manage to reach a special agreement for accessing the special european market. these banks will have to negotiate and basically the uk will have to negotiate individually with different member states. quite frankly, the easy solution for these banks is to relocate part of their activities on the continent. not all of them, part of them. it is interesting. when you look at the sentiment from both sides, like donald tusk saying it will be a difficult negotiation process, theresa may saying if they do not get the vote they want they will exit completely. in that situation, what do we see for the future of the city of london in terms of how it will operate? she implied in her speech that she will change the goalposts in terms of how things go in london, taxing, regulation, so it becomes better on the ground. yeah. i think there are two things here.
political posturing, if you want. 0n the one hand, you know, the way that theresa may presented that to european partners is that they will withdraw from the european court of justice and so on. and then i will try to basically seek market access without being part of the eu. and if you do not do what i want, we will move offshore. basically a tax haven in the uk, that kind of model. she will try to liberalise the financial sector even more, at our risk and peril, as the 2008 crisis showed, and replaced the job losses from respectable bank activities by attracting things like hedge funds oi’ attracting things like hedge funds or other financial activities. now, this is a very risky strategy. not
just because obviously it can trigger different kinds of financial fragility within the system, but it is also bad news for british working families. turning the uk into a bank haven will not help those who voted to leave the eu. very interesting. thank you for your time today. i am sure i will talk to you again before we leave the eu officially. thank you for coming in. we will go to south korea next. that is where a growing corruption scandal has led to the impeachment of president park geun—hye, and has been threatening to suck in the boss of samsung, jay y lee. some good news for him in the past few hours though. mr lee was held by prosecutors overnight on wednesday, but early this morning he's been allowed to go home after a court in seoul threw out a warrant for his arrest. prosecutors wanted him arrested on suspicion of bribery, embezzlement and perjury, charges he denies. let's talk to the bbc‘s kevin kim in seoul. he has been covering this for us. i
hope you are there. tell us more about the latest and what happens today. the last 24 hours were some of the longest and most dramatic for jay y lee. at the cityjail, the head of the biggest company in south korea waited through the night until there was a decision to release in. early in the morning the judges said there was no sufficient reason to put him behind bars. he was then seen put him behind bars. he was then seen walking out ofjail with a slight smile. apparently he then went straight to work. slight smile. apparently he then went straight to worklj slight smile. apparently he then went straight to work. i understand the prosecutors are saying we will pursue this. we will not waver. they seem pursue this. we will not waver. they seem to be very determined despite the decision of the judge. that is correct. the messagejay y lee
wa nted correct. the messagejay y lee wanted to send is business as usual. but this may not be the end of the problems for the chief of samsung. the company has been accused of bribery. he may still have to face a trial if prosecutors face charges. the allegations are that he gave millions of dollars in return for the votes of the national pension fund ina the votes of the national pension fund in a big restructuring of the company. but in the meantime, jay y lee still stays a free man. great to talk to you again. thank you for now. he was in seoulfor us. squeezing in some other stories. renegotiating the nafta trade deal with canada and mexico is the trump administration's top trade priority, according to commerce secretary nominee, wilbur ross. he was speaking to us senators at a confirmation hearing on his nomination. mr ross said china was the "most protectionist" country among large economies, but said nafta is "logically, the first thing for us to deal with." shares in tv streaming service netflix soared as much as 9%
on the news it is growing much faster than expected. netflix added just over seven million new subscribers in the last three months of 2016, a third more than forecast, and expects to break the 100 million mark by the end of march. netflix has invested heavily in original content while ending deals with top studios, a gamble that is paying off. financial markets. a mixed day. good news forjapan. financial markets. a mixed day. good news for japan. the financial markets. a mixed day. good news forjapan. the japanese yen weakening. you can see the pound is keeping a close eye on it. janet yellen talking yesterday in san francisco saying that rates in the us could be up again. they are predicting the month of march. that is what is happening. i will see you again soon as we will review the stories in the news injust a moment.
a disabled man has won his case at the supreme court, after a dispute over wheelchair space on a bus. it means bus drivers will have to do more to accommodate wheelchair users. doug paulley brought his case after he was refused entry to a bus, when a mother with a pushchair refused to move. it has taken nearly five years of legal battles to get to this point. how are you feeling, dad? relieved. but finally, doug paulley has had his day in the highest court in the country. all seven judges agreed that the bus company's requirement of asking instead of having to give the seat up is notjustified.” of asking instead of having to give the seat up is notjustified. i am really pleased with the result. i am
aware that some people will not be pleased. it has not gone as far as some people would like. it has gone further than some people would like. in the end, this is about disabled people is rights to get on a bus. this began in 2012 when he was not able to get on the bus because the wheelchair space was occupied by a mother and her pram. following today's verdict, they may have to change training. but they are pleased they will not have to force people off the bus. we welcome the fa ct people off the bus. we welcome the fact the court has confirmed that a driver is not required to remove a passenger from a bus driver is not required to remove a passengerfrom a bus if driver is not required to remove a passenger from a bus if they are refusing to move from the space. that is really important. but what about mothers with babies? it is not quite as simple as wheelchairs versus pushchairs. it requires commonsense. today's supreme court
ruling paves the way for a closer look at legislation when it comes to prioritising access for wheelchair users. i'm adnan nawaz. the top stories this hour: a deadline has passed for the gambian president to step down, with no sign of any change in his position. yahya jammeh — who's been in power for two decades — is refusing to leave office, despite losing an election last month. he's supposed to hand over power today. president obama has warned his successor, donald trump, not to lift sanctions against russia unless it reverses what he described as its violations of ukrainian sovereignty. he says, once he leaves office, he will still stand up for what he calls core values. barack hussein obama leads our news
review. he spoke to the press corps at the white house for the very last time. the guardian showing him here smiling, talking about why he believes americans voted for donald trump. he says it's because they feel forgotten and disenfranchised. peace talks to try and end the bloodshed in syria are due to begin on monday in kazakhstan. in the arab news, they've got a bit there on the front page. it still seems unclear which international players will be at those