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tv   BBC Business Live  BBC News  March 14, 2017 8:30am-9:01am GMT

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this is business live from bbc news with ben thompson and sally bundock. the historic move by uk parliament to pass the brexit bill. theresa may is now on track to trigger the formal process of taking britain out of the eu in the last week of march. live from london, that's our top story on tuesday 14th march. what has been the reaction to that historic vote last night? we look at this milestone moment that set the stage to unwinding a0 years of close cross—channel ties. also in the programme, in tokyo toshiba shares plunge as it delays its results announcement for a second time. and in europe markets are mixed as
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political risk is firmly back on the agenda. plus, will a winter storm affect the meeting of the federal reserve ? affect the meeting of the federal reserve? we will tell you all you need to know. we will tell you all you need to know. playing his cards right! later in the programme we'll hear from one of the world's leading board game manufacturers about the threat from computer games and opportunities of new technology. and as levi's launches a smartjacket that can control your smartphone we want to know is it one step too far for wearable tech? just use the hashtag bbcbizlive. get in touch with your thoughts about the smart jacket, get in touch with your thoughts about the smartjacket, brexit, whatever we are discussing this morning. we love to hearfrom whatever we are discussing this morning. we love to hear from you. we love to hear from you. we begin with the historic move on the part of the uk parliament. late last night it passed the brexit
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bill, paving the way for the government to trigger article 50 so the uk formally can leave the european union. we expect formal negotiations to begin before the end of march. and that brings with it a period of uncertainty for the british economy. so how is it faring at the moment? last year, despite the surprise outcome of thejune referendum on eu membership, britain recorded growth of 2%. but this year won't be so good. according to the international monetary fund it will slow to 1.5%, though this is actually up from their previous estimate of 1.1%. and in 2018, growth is expected to come in atjust1.a%. the ongoing uncertainty has also impacted the currency. since the referendum lastjune, the value of the pound has fallen over 18% against the us dollar.
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0ur economics editor, kamal ahmed, is with me. nice to see you. running through some of the economic growth forecasts. let's start at the beginning. where are we now? where does it leave us this morning? the government has got through the legislation in the uk parliament, that means they can now write the formal letter to the european commission, triggering the exit process. from that moment, which is likely to be the end of this month they have two years to negotiate, not only britain's exit from the european union, which is the technical issue that needs to be done there, but for the british government they also in parallel wa nt to government they also in parallel want to negotiate a new trade deal with the european union. a lot of
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people say that is a big stretch in two years, but that is the way the government wants to approach it. it has made it clear britain does not wa nt to has made it clear britain does not want to be in the single market and it is unlikely to be in the customs union. whatever the trade deal is with the european union, it will have to be reformulated. but this is different from canada trying to negotiate free—trade deal with the european union because there is a free trade deal in place which will be unpicked. the government's argument is we are starting from a position of no tariffs and it is a question of adding in tariffs and they believe that is an easy process than the eight or nine year process that canada went through to get the free trade deal with the european union. the next couple of years will be defined by certain landmark moments. triggering article 50 is the first one. that gives business uncertainty in some respects because
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we have got a timetable, but it raises so many other uncertainties. economically what do we expect to happen? the most important thing will be what news flow do we get in that two—year period? we may not get much, but what we will get is news about the arguments and that is where the treasury is concerned. you get the rows, the conflict over what ta riffs get the rows, the conflict over what tariffs might exist in the automotive sector, the pharmaceutical sector. that leads to pressure on sterling. sterling has lost value and it goes down and it introduces inflation into the uk and that affects consumer confidence. the uk economy is driven by consumer confidence and that could dissipate. the uk economy could slow. that is the worry in the treasury's mind. it is not that we will not get a good deal at the end of the process, but anyone dealing with europe knows there is often a long
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period of negotiation and then an absolutely eye watering final five days when everyone stays up all night and they get a deal at the very end. in that situation that two—year process is devoid of real substance and that leads to economic uncertainty. it keeps us all in a job for a while! so much analysis and information on oui’ so much analysis and information on our website. we have not mentioned the scottish curved ball as well which introduces even more uncertainties. have a read and dig deep. we will keep you in touch with every twist and turn on the bbc you can guarantee. in other news: ia million could loose insurance coverage in 2018 under the new republican health care plan, according to the congressional budget office. the nonpartisan group of budget analysts and economists claims the added number uninsured would rise to 2a million by 2026 and reduce federal deficits
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by $337bn over the ten—year period. facebook has banned software developers from using its data to create surveillance tools, closing off a process that had been used by us police departments to track protesters. the social media network says the change will help build a community where people can feel safe making their voices heard. and the brokerage, charles schwab, has becomes the latest company to launch a part human, part robot financial advice service. it's part of a wider shift among the big banks to offer digital products to customers on more routine transactions. the service combines its automated investment management technology with human advisors. we are all human here, but we are trying to get the technology to
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work. i think it knows very well we are human. we have got the situation regarding that decision in parliament yesterday and that is dominating the business live page. but we have got the fed beginning its closely watched meeting. 0ur next guest will talk about that. i was a bit concerned about the winter storm and the impact that would have onjanet storm and the impact that would have on janet yellen and storm and the impact that would have onjanet yellen and and her team gathering in washington. their snow boots will be on. they will trek through to talk about interest rates. let's go to singapore because we are talking about toshiba and it has missed its earnings deadline. about toshiba and it has missed its earnings deadline. first, karishma vaswani is in singapore... explain the significance of this. it is the second time it has delayed its earnings announcement and it is a major embarrassment for an already troubled firm. it asked for the
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extension, one month this time around, until april the 11th, to sort out what it says are auditing problems. we have heard this before and this was the reason it gave in the previous set of announcements when it was expected to make the announcement in march. in the last hour there has been a news conference that toshiba has held and the president has repeatedly said it is planning to sell its stake in its troubled american nuclear business. nuclear is a third of the company's revenues. that division has not made a profit for the last few years. the president has also said he is hoping the company will return to growth in 2018 and 2019, but the market and investors are 2018 and 2019, but the market and investors a re not 2018 and 2019, but the market and investors are not holding up much hope and the shares fell by 7% with that news. that was one of the big movers in japan that news. that was one of the big movers injapan today. you can see that the uk index is down slightly
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in anticipation of an interest rate hike coming from the federal reserve the united states. in the chinese economy on the whole growth is on a firm footing. hong kong was boosted a bit by that, although it closed flat, down by one point. let's have a look at europe which is trading at the moment to give you a sense of how things are going. again europe is fairly flat. political risk is very much on the mind of europeans because that brexit boat went through. also as well we have got voters going to the polls in the netherlands tomorrow which kicks off a year of general elections in europe. we cannot bring you the european numbers right now, but the main markets in europe are slightly up main markets in europe are slightly up and slightly down. i will hand you back to bed and hope the technology will catch up with us. the european numbers are here and richard fletcher is here with us. let's pick up on what sally was
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talking about. we have got some clarity on brexit last night. it is going to happen. the markets are taking it in their stride. yesterday the pound closed up on the day despite we had the scottish referendum news and overnight it has given up those games and some. the pound is at an eight—week low at $1.21. it has been a bumpy morning and we will see how that goes throughout the day. let's talk about the federal reserve. there could be a snow day. we still expect them to me, but the snow could get in the way. we expect some numbers to dial in bya way. we expect some numbers to dial in by a conference call. there was a storm in 2016 and they still managed to meet the next day. 0nly storm in 2016 and they still managed to meet the next day. only a few weeks ago everyone saw another rate rise as unlikely and yet now it is an odds—on certainty, and 90% chance of arise. what people are looking
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for now is the language from them. they have said they expect to raise rates three times this year and some people are forecasting it could be four times. it is really about the language of the rate rise and the markets believe it is odds—on. language of the rate rise and the markets believe it is odds-on. we should be clear on the snow. they are expecting a lot. ten inches in washington and 20 inches in new york. thousands of flights are cancelled, schools have closed. if that happened in london, it would be a major disaster. let's have a look at the g20 finance ministers meeting in germany. there isa ministers meeting in germany. there is a lot going on. this is the first post donald trump g20 meeting. in the draft communiques some of the language has changed. we have lost that we will resist protectionism on all fronts, that line has gone. that appears to be a change of tone. what
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happens in the two days of the meeting, we will have to wait and see, but they will be a change of tone. we have got the bank of england as well, so there are lots of issues for the markets to face this week. we appreciate you coming in. it is a very packed week. come on! give us a demo. i cannot do it. i have got some playing cards. still to come... keep talking, it is live tv. still to come... playing his cards right, we meet the man behind the firm that makes cards for some of our most popular board games — and tells us how new technology is changing the oldest of businesses. you're with business live from bbc news. i was so impressed with that. there are so many things you do not know
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about me. in the uk, fashion retailer french connection has reported its ninth year of losses. those losses narrowed to £3] million, an improvement on the a.7 million pounds it lost the year before. david shaw is a business writer on fashion buying. 0nce once it was the darling of the high street and it is now struggling. everybody has been watching this and this once great british brand seems to have lost a great deal of traction with its original brand followers. reading the results this morning it is on what appears to be a downward spiral which is a great shame because this brand has great potential. what is the outlook? how will it turn itself around? they are doing all the right things. i have had a look at the accounts and the
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state m e nts had a look at the accounts and the statements and they are closing loss—making shops and they are doing quite well on internet trading. they seem quite well on internet trading. they seem to be doing the right things, but they do not seem to be able to get people back in love with the brand. whether they can pull the rabbit out of the hat as they did with the famous sc uk, we will have to wait and see. this business has been around for 50 years and everybody is hoping it will hold on and do something pretty quick. the issues to be a separation on the high street, the winners and losers are becoming clear. if you look at all fashion retailers they are rather limited. if you have a shock, you're competing with an intranet business with an infinite range. how can you hope to satisfy them? i think french connection will
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have difficulty competing with this. the other issue is the problem of huge foreign investment, these people are on a massive scale so it is being pitched everywhere. that is another problem. people feel french connection are overpriced. top story, the uk parliament has passed the brexit bill. theresa may has the formal process of taking britain out of the european union. let's have a look at how markets are faring. we have had problems with the graphics today for some reason butjust to say the value of sterling went up slightly and then has been falling back today. the sheer markets are
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pretty flat. treading water. elections are expected to change this in the netherlands tomorrow. you all probably owned some phone mood by next guess. belgian—based cartamundi is one of the worlds biggest manufacturers of playing cards and board games — making family favourites including monopoly, operation and play doh. cartamundi has a history dating back to 1765... and the firm has manufacturing facilities all over the world, including in germany, poland, mexico, the us and india. that is where it all started. the
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a ncestry of that is where it all started. the ancestry of the company goes back to 1765. it is the reason why they were so expensive, and why the cards still detect the kings and queens and jacksonjokers still detect the kings and queens and jackson jokers who used to play with cards. tell us how you got from the humble playing card to this sort of stuff? the way that people play obviously progresses. to stay releva nt we obviously progresses. to stay relevant we have to keep our factories busy with products that
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are relevant, great experiences for people to play with. the purpose of the company is to share the magic of playing together. talk us through how the relationship works. you make the games we've all heard of. but you don't actually sell it in the stores. 0ther you don't actually sell it in the stores. other companies do that. talk us through your competitors. the lubbock we have games manufacturing services. we make electrical card games, that is the business of games manufacturing services. you have shifted where you make things from china to the united states because of your relationship with hasbro, four example. when the
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game market grew by 15% last year. it has been growing exponentially in co re it has been growing exponentially in core markets, one of them being the united states. in order to capitalise, you need to manufacture the products closer. you would imagine something that is traditional is suffering from computer game. i want to show viewers this. explain what this slightly high—tech thing inside the ca rd slightly high—tech thing inside the card is about. this is a printed intelligent near field communication card. it is a new form of electronics which can be printed. traditional electronics are silicone but that is metal oxide. it enables electronics to be able to integrate
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into everyday paper—based items. in the future your cards will be intranet enabled, your board game will be able to connect and give you a different game experience than before. taking all technology and making it very new. yes but still in a fast, fun and easy way. at the end of the day it is the game experience that matters. thank you so much for coming in. i love playing with these cards. we like you to get in touch with the stories we are covering and one of them is about this smartjackets that tells you what's going on. it isa that tells you what's going on. it is a jacket attached to your smartphone and it can tell you the
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time, let you listen to music... the goalfor google is the goal for google is to the goalfor google is to provide access to their favourite services and information from everywhere and anywhere at any time. whether they are biking walking or cycling, they should be able to access their favourite services. tell us what is here. this is integrated into a portion of the cuff material. the thread that capture your gestures integrate and are transferred to the little tag. you have the destination
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and it tells us this. you can control the music from the cuff of this sleeve. that would drive me insane. everybody else around you as well. dominik is with us. thatjacket, would you wear it? it would drive me insane. imagine being on a train. what about when it malfunctions and you're ina what about when it malfunctions and you're in a meeting. one person says, not so smart, give the not so smart something new to play with. jasper says i'm not convinced
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wi reless jasper says i'm not convinced wireless signals are safe so i would not wear it. we've had quite a few people talking about it but nobody has said they want to wear it. wea ra ble has said they want to wear it. wearable tech was going to be the next big thing. it has not taken off. a lot of people are wearing it on their arrest. that is wearable tech. it is but it's not a jacket. let's talk about oil prices. we thought they were going back up. they'd finally agreed production cuts but it has gone down. last week it went down 9%. it was $55. now it is down to a8 dollars. notjust because it is having difficulty maintaining this but also the second she'll revolution in the states. the
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biggest ever oilfield discovered. the numbers are out from the us department of. they are on course to produce an extra million dollars —— million barrels of oil a year. it's an astonishing new source for production. that has a huge impact, economically. oil is important for everything we buy. transport costs, driving the world economy. it is going down. most to see you. thank you. sally is going to teach me more ca rd you. sally is going to teach me more card tricks. i am. thanks to your company. goodbye. for the next couple of days it looks
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pretty settled. things turn u nsettled pretty settled. things turn unsettled towards the end of the week. in scotland, potentially disruptive winds across the north western isles into the north mainland. there will be some sunshine around. these winds continue to use down. for northern ireland, a fine afternoon. in the south—west of england, the best of any sunny spells, it could get quite
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warm. fairly cloudy afternoon. this evening and overnight, sky is beginning to clear, but here it will turn chillier. we start wednesday off on turn chillier. we start wednesday offona turn chillier. we start wednesday off on a clover note. through the day, it is quieter. for most of us, feeling mild where we have prolonged sunshine across southern and eastern parts. the area of high pressure is fishing in from the atlantic, it will be windy and wet. the best of the bright weather across the south
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and east. that is the trend. the weather front is moving across the country. 0pening weather front is moving across the country. opening the floodgates. for the weekend, windy for most of us. it will feel cooler with bells of rain. a little bit of brightness at times. hello it's tuesday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. this morning: how do firearms officers make split second decisions on when to shoot a dangerous suspect? in the worst case scenario you could end up in a situation where you're on trial. yeah, you could. that's why it all comes down to decision—making, that's why that's so crucial and i think you've got to have confidence in your own ability to do that. if you don't, then you shouldn't be here. we've had exclusive access to a firearms training academy in cheshire following police recruits. watch the full report in the next few minutes.
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also on the programme, theresa may has won her battle in parliament on brexit, but now she's got potential scottish independence to reckon with.
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