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tv   BBC Business Live  BBC News  June 5, 2017 8:30am-9:01am BST

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this is business live from bbc news with ben thompson and sally bundock. more raids as british police continue their investigation into saturday's attack in london but do they have the resources they need? live from london, that's our top story on monday, 5thjune. days ahead of an election the labour opposition accuses the conservative government of trying to "protect the public on the cheap". also in the programme: the uae's etihad airways says is suspending flights to qatar amid a regional political row over terrorism. markets are looking like this. oil prices on the rise over those tensions in the middle east. we will have all of the details. and with security high on the agenda
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for the aviation industry we'll find out what impact it's having on airlines as they hold their annual gathering in mexico. if you want to get in touch with us about anything we're talking about today just use the hashtag b#bcbizlive. hello and welcome to business live. we start with events over the weekend and the massive police operation after saturday night's terror attack in central london. the investigation is well under way. in the last few hours police have raided two more properties in east london as they investigate the attack which killed seven people and injured 48 people. it has prodded questions over how the police are funded and if they have the resources they need. jeremy corbyn accused the conservatives of trying to "protect the public on the cheap". they accused him of "desperate
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promises and evasive soundbites". so let's look at the numbers. the total police budget for england and wales stands at about £14.34 billion. because it's a devolved issue in scotland and northern ireland the funding is separate. on top of that there are extra grants including about $725 million specifically for counter—terrorism. the uk election is just three days away and the labour opposition is pledging about £386 million for an extra 10,000 officers. the governing conservatives haven't given costings but say that a new "infrastructure police force" will help in counter—terror efforts. earlier i spoke to a security expert. he said cuts to police numbers have forced changes in strategy. it is a difficult one and
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there is no hiding from the fact that resources in the police have dropped since 2010. police will a lwa ys dropped since 2010. police will always wa nt dropped since 2010. police will always want more resources to deal with this threat. i think it is worth noting that, and you said it before, the response capability of the police forces was fantastic. to deal with that in eight minutes shows that they have managed to deploy those resources very, very well. it is a huge task. 0bviously the threat, the complexity of the threat we currently face, is an enormous task against the police. there are about 3000 people on a watchlist and you physically cannot watchlist and you physically cannot watch all of those people all time. it is about using the resources to work out the key targets. there are about 550 active investigations in counterterrorism at any time. they will prioritise those that they think are the most important. i think are the most important. i think the reviews will come, did they miss anything, should these have been a higher priority and how can we ensure that in future attacks
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they prioritise those and intervene sooner. antony leather, that i spoke to earlier. throughout the programme i will keep you up—to—date with any developments from central london. we have got a live page up and running, updating all the time. we will be with our correspondence at the scene. facebook says it wants to make itself a hostile environment for people who carry out acts of terror. british prime minister — theresa may — has called on technology companies to do more to tackle extremist content online. google says it's already spent hundreds of millions of dollars on tackling the problem. toyota has ended its tie—up with tesla and stepped up efforts to develop electric vehicles by itself. toyota bought about 3% of tesla for $50 million in 2010. but the japanese carmaker announced this at the weekend that it sold the last of its stake in tesla at the end of 2016. toyota wants to launch
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its own purely electric car and is continuing to develop hydrogen fuel cells. the world bank has maintained its forecast that global growth will rise to 2.7% this year, citing a pickup in manufacturing and trade, improved confidence and a rebound in commodity prices. despite the good news, the world bank warned that political uncertainty and the threat of protectionism posed a risk to the global economy. lots more information on the website. there are lots of business stories on there and also more updates about the situation in london, following saturday night's terror attack at london bridge. this is an interview between karen bradley, the secretary of state for culture, media and sport, talking to bbc radio, saying that the government needs to work extremely ha rd government needs to work extremely hard to tackle this problem following the extremism on the internet. she was probed about that. lots of commentary on that and reaction from some of the social
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media giants to that. facebook saying it is doing all it can to tackle extremist content on its website. 0ur our technology correspondent on the west coast of the us is staying right across that, getting a response from google, facebook and the other social media firms about how they tackle and police the content. five arab nations have cut diplomatic ties with neighbouring qatar. saudi arabia, the uae, bahrain and saudi arabia have accused the country of meddling in theiraffairs and links to terrorism. and that's led etihad airways — the uae national airline — to suspend flights to qatar. other airlines are expected to do the same. let's get the details from our asia business hub. monica miller is there for us. this is a really interesting story.
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we have talked about a lack of cooperation between the gulf states, but this is upping the ante, cutting diplomatic ties over what is alleged to be meddling in internal affairs and links to terrorism, pretty serious accusations? absolutely. oil prices are showing they inched up, over $50 a barrel. this has come on the news that broke that saudi arabia, the world's biggest crude oil exporter, and a couple of other nations in the middle east, broke diplomatic ties with guitar over what they say is the country's support for terrorism. a saudi state news agency said it is shutting down the border, severing contact with its fellow 0pec member. that means if you are travelling in the region, you might want to call your carrier earlier. they are cancelling etihad airway flights tomorrow. the qatar foreign ministry says they regretted
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the decision. we will have to wait and see. thank you, good to see you. we wa nt and see. thank you, good to see you. we want to return to our top story. security expert will geddes is near the site of the attack at borough market. he is a security expert and founder of international corporate protection. thanks forjoining us. we have been talking at the start of the programme about the police investigation ongoing. give us a sense of where you are. you have been talking to a lot of people, you have insight into the security services. what is the priority right now? the priority right now is looking at these three individuals. they have their identity, so they are going to be looking at any kind of associates, activity linked to any active cells under observation, or that may not even be known. there will be doing a sift through their networks, digital, cellular, footprints, and also, no doubt, speaking with international colleagues. not only the
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intelligence agencies in continental europe, the middle east and within five eyes partners. you can see the areas cordoned off, the police investigation will go on for some days. the nearest tube station is open, people are back to work. london is operating as an international city? yes, absolutely. you only have to look around. london is incredibly robust. we can't forget we have had decades of dealing with terrorism and we have had horrific attacks before. one of the impacts that has a major influence in terms of terrorism into business is, and again it is evident around the local area, which the police have still got caught and off, to keep as a scene of crime until they finish their investigations, is that it does disrupt business in the immediate area. there are a number of
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employees standing around, evidently not able to cross the cordon to get to work. terrorism has a number of different impacts. not only in the very visceral sense, in terms of human casualty and fatality, but it has an impact on business, to a greater and lesser degree, in terms of the isolation of those areas until the authorities can clear them. i would imagine any business that has operations in london cuts to think this way for the future? absolutely. many companies that we know of, a number of clients, have already been looking at their crisis management and their business continuity plans to incorporate not only the traditional types of business interruption issues but most especially terrorism. i think it isa most especially terrorism. i think it is a very realistic and pragmatic aspect but any company has to consider. these things can be incredibly spontaneous. it can be, in the most well resourced environments as well, these things can simply happen and it can
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restrict the business from operating. they need to look practically at how they continue their business. thanks for your time this morning. let's get back on track with the issues we work discussing about the tensions around the middle east. that is pushing up prices for oil. that is because the largest exporter of crude oil, saudi arabia, other arab states, cutting ties with qatar. we have talked about it there, the details of why an airline is stopping flights to qatar. really interesting to see how that plays out over the coming days. this is what europe is doing at this point. frankly, not much movement. they are in wait—and—see mode across the euro zone. particularly ahead of the election in the uk. we will talk more about that in a moment. michelle fleury has details about
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what is ahead in the united states. the credit crisis exposed gaps in how the financial sector was regulated. in its wake, the dodd—frank financial reform law was introduced to make another crisis less likely. this week, the house is expected to vote to dismantle it. but the bill to change it — the financial choice act, as it's called — is likely to face opposition in the senate. the smart money on wall street is betting that the final bill will likely include hopeful community banks, rather than any sweeping changes. joining us isjessica ground, uk equities fund manager at schroders. good morning. lovely to see you. we we re good morning. lovely to see you. we were looking at the numbers in europe, the ftse is flat, the pound is weak a bit. i guess that is the reaction you would expect. we have the election a feud a —— a few days
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away? yes, everybody will be looking to the election, the polls showing that the lead was narrowing saw some people putting the pound under pressure last week. it is really going to be down to the size of her majority, if indeed she has one. i think the markets will be quite sensitive to that on friday morning. i also mentioned oil. it is interesting, the tensions in the gulf. in the past they have tried to come up with the gulf cooperation agenda, that is not necessarily happening. we have seen oil going up accordingly? definitely. very interesting, the diplomatic moves to isolate qatar on the back of some remarks that the leadership had been making there. unsurprisingly, oil spiking as people worry about the tensions. keep in mind that commodity prices have been relatively weak this year. so, still spiking from low levels. briefly,
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many are already looking ahead to the fed. they are missing next week. given the news about the economy, jobs, many are saying maybe not a rate rise in june? exactly. we have been waiting for a long time to see the us start to raise interest rates. people are feeling it is a sign that the fed feels the economy is performing very well. butjobs are incredibly important into that decision. so, a lot of watching to see how secure they are feeling. all right, jessica will return later. we are going to look at some of the other stories in business. still to come, how to tackle terrorism. the as the world's top airlines meet in mexico — security is top of the agenda. the challenge — keeping passengers safe but keeping planes flying. you're with business live from bbc news. leaving the eu could make it harder for companies to find
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well qualified staff, according to the cipd. it says nearly three—quarters of firms expect competition for good staff to rise making it more difficult to get the right employees. claire mccartney is from the cipd. clare, good morning to you. good morning. why it sounds simple, doesn't it, it is more difficult to get people to come in. is this about immigration or a competition for top talent? it's about a competition for top talent and about organisational concerns. in our research we found that organisations were concerned about accessing senior and skilled employees, but also operational staff as well. so while the future in relation to access to skills might not be certain, what organisations can do at the moment
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is really try to sharpen their hiring processes and focus on developing and keeping their existing employees. so that's the big issue and you are not alone in saying this is a real problem and warning about this issue, but obviously we have an election just a few days away, brexit is on the minds of many going to the polls. i mean, what are you calling for and from who? so, basically, we think it's really important that whoever wins the general election is aware of these organisational concerns, encourages organisations to develop employees, but from an organisational prospective, more needs to be done around measuring and evaluating hiring processes and more needs to be done around delivering on diversity and then finally more needs to be done around helping to keep existing employees and to develop them to fill some of the current skill gaps that organisations are experiencing and also some of those skill gaps that
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they might be experiencing in the future as a result of any brexit deal or negotiation. all right, clare, thank you very much indeed. clare mccartney. they used to be known as the chartered institute of personnel and development before they scrunched it together. i can see why they did that. it's quite a mouthful. we are staying across events in london. there is details there on president bbc business live page. it is available on the website. police here in britain say they have seized a huge amount of forensic material as they investigate the latest terror attack in london. this isa latest terror attack in london. this is a live shot now. you can see the shard there, of course, which is very close to where all this happened late on saturday evening
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and with an election just days away, the two main political parties have been at pains to say that, of course, they want to continue with the democratic process in this country despite the events of saturday night that, perhaps want to try and disrupt that process. that's the view you can see there at london bridgejust down from the view you can see there at london bridge just down from borough market. the first reports coming into police at 10.08pm, but the police response incredibly quick, having shot the three attackers just eight minutes later. by 10.16pm that event was over. and security is of paramount importance to the airline sector. it has performed well in recent years, despite fierce competition and the ongoing fears over security. but as the international trade body, iata,
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meets for its annual get together in mexico could 2017 be a year of change for the industry? profits last year were at a record high at $35.6 a record high at $35.6 point dollars with passenger numbers up 6.3% percent compared to 2015. with passenger numbers up 6.3% compared to 2015. but iata has since downgraded its outlook for this year saying the rising cost of oil will provide a headwind for the industry but also the increase in security measures. the question of whether the united states will extend its ban on laptops in the cabin for all international flights remains unanswered. the us already has a ban on large electronic devices on flights to and from eight mostly—muslim countries. with us is rochelle turner, research director, world travel and tourism council. it was a very swift, almost like an
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overnight ban and caused chaos at the time. give us your take on what the time. give us your take on what the industry body will discuss on that today? well, i think the industry body are having their meeting in mexico and they are worried about what the measures mean for travel and tourism the world over. travel and tourism is a vastly important sector. 10.2% of global gdp relies on the tourism sector and aviation is about a third of that. so it's a huge amount of money. and also ofjobs. now security is vital to that and we have to ensure that these measures are not only put in place with consultation among the industry, but that those on the ground who are actually implementing t the people that are at the checkpoints that have to put the security bags through the security scanners or tell the people no, you can't take these materials with you, they also have to know so we don't see the chaos that we have seen in the past. how resilient is the airline industry? it's not the first threat it faced or the first
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challenge it had to overcome, we saw a lot of head winds after 9/11 and we have seen it since from restrictions on liquids. is this just another bump in the road for them, a laptop ban? they said in the last ten years we have had more disruption and it has been less peaceful for the last decade than previous decades. yet at the same time we have seen the global aviation industry increase 4% a year for each of those years of the last ten years. so yes, we are incredibly resilient despite what is happening. when it comes to the issue of open skies, regulation, and some would argue protectionism within the industry, what will be discussed about that? well, i think that's a very good question and there will be a lot of discussion because we are seeing more and more protectionist measures being put in place. we are seeing the laptop ban. that stops people travelling. we are seeing the ban from muslim countries that donald trump tried to put into the us. and we are seeing a lot of these measures that may come in almost by
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stealth if you like that they just stop people travelling and we have to make sure that people can continue to travel. of course, there are security measures that are in place, but they are proportionate and relevant and people on the ground know how to implement them. rochelle, thank you. if we get any news out of that annual convention in mexico, we'll update you. this programme is all about you, what you want to hear from us and what you want to hear from us and what you want us to explain. here is a reminder of how to tell us what you want us to talk about. the business live page is where you can stay ahead of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors right around the world. and we want to hear from you, too. get involved on the bbc business live web page: on twitter, @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. jessica is back as you can see. in
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the financial times, eurozone recovery becomes surprise economic story of 2017. we are so used to moaning about the eurozone and yet this year is proving to be a good one? what's more surprising under that portugal—italy, not traditionally seen as, we know germany has been strong for sometime, but showing good levels of growth. i think quite surprising as well because everybody felt that prost trump that the us was going to be the runaway success, but the eurozone benefiting from exports, but also it will be encouraging to policy makers. consumption is starting to recover. the outcome of the french election and the netherlands has helped with the good news story? yes, but we are focussed
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on the italian election to say com plete on the italian election to say complete that picture. the only reason we are surprised is because our expectations are low? that's true. we are still talking about growth in italy of 0.4%, but i think what's really interesting is we start, when we start to think what might be the central bank and what it is doing in response. 0ne might be the central bank and what it is doing in response. one of the reasons that europe is unusual it had a huge amount of central bank quantitative easing and low rates and when we start to navigate more normality. growth has been low not just in europe, but globally. tell us just in europe, but globally. tell us about the story in the independent about warrington deciding to start its own bank? really interesting. there has been this huge debate post the financial crisis about is sort of lending getting enough into the real economy? and you have the case now of warrington investing in a bank and choosing to allocate a
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substantial amount of money towards that. it is very much about money sourced locally and spent locally and that's sort of what building societies used to do? what happened with the building societies they merged and then for example barclays took over the likes of the woolwich and if you like there, is about the next generation tv banks coming up. they are still relatively small though so we have got a while to go before they have a huge impact. jessica, thank you very much. warrington is in the north—west. jessica, thank you very much. warrington is in the north—westm is near to my hometown. it is my neck of the woods as they say up there. the on going investigation and let's show you pictures. these are the arrivals at the cobra emergency committee in westminster. you can see michael fallon, the defence secretary arriving to co—ordinate the government response. we will see you tomorrow. bye-bye. hello. we've had a taste of summer
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in recent weeks. that's about to change. some unseasonably wet and windy weather heading our way. rain pushing eastwards. just about clear now of northern ireland. here a better day and sunshine and showers. rain draped across northern england and wales and south—west england, slowly pushing eastwards through the day. let's look at 4pm this afternoon and our band of rain just about clear from the east coast of scotlandment behind it, sunny spells and showers could be quite sharp if you catch one. highs of 16 celsius in the sunshine. a better day for northern ireland compared to the weekend and those thundery downpours, but some persistent rain across north wales and north—west england. east anglia and south—east england. east anglia and south—east england perhaps not seeing rain until later this afternoon. sunshine and warmth ahead of it, but miserable across much of england and wales. so come this evening's rush
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hour we could find surface flooding and strong winds. 0ur band of rain pushes its way north and eastwards through this evening and overnight and turns to northern england and scotland, but eases across the rest of england and wales and northern ireland. still the strong winds and temperatures overnight shouldn't get much lower than ten or 11 celsius. but we have got a blustery cool feel tomorrow and that's because we still have this area of low pressure and you will notice the squeeze in the isobars, the winds are coming from the north—west. it will feel much cooler tomorrow and still very wind across northern parts of england and into scotland as well where it could be raining for much of the day. england and wales, northern ireland some spells of sunshine, but blustery showers. look at the temperatures, it will feel quite cool tomorrow despite any sunshine, 15 to 18 celsius the high. as we go
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into wednesday, an area of low pressure playing the north—east of scotland. another one waiting in the wings, but in between, though still windy and cool, a drier respite midweek with spells of sunshine. the rain slowly clearing from the east coast. another band of rain starting to push in from the west later in the day. good morning. it is monday, nine o'clock. police investigating the terror attack in central london on saturday night say they now know the identity of the three men who killed seven people and injured dozens of others. the very high priority for us others. the very high priority for us is to try to understand whether they were working with anyone else, whether anybody else was involved with the planning. to find out the background to it. police are searching two addresses in east london. prime minister theresa may has been chairing a cobra meeting. the so—called islamic state group has claimed responsibility. when we do intervene in foreign
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policy we are blamed byjihadists, such as in iraq. where we don't intervene, like in syria, we are blamed again byjihadists for not caring about muslim lives.
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