tv World Business Report BBC News June 12, 2017 5:30am-5:46am BST
hello. you with bbc news. i'm sally with the headlines: —— you are with bbc news. the british prime minister, theresa may, will hold herfirst cabinet meeting today since the election that plunged her government into crisis. senior ministers reappointed by two reason may have publicly given her their backing. —— theresa may. the party of the french president is on course to secure a landslide victory in parliamentary elections. emmanuel macron‘s party, which was set up a year ago, received 32% of the vote in the first—round poll. preliminary results from kosovo‘s parliamentary election indicate a victory for the centre—right coalition. a former prime minister, who was indicted by serbia for war crimes during the conflict in kosovo, could return to office. rafael nadal of spain has won the french open for the tenth time. he beat the swiss player stan wawrinka in straight sets. nadal, who came back from a serious wrist injury last year didn't lose a set in the whole tournament. so, as the uk prime ministerfights
to stay in power, experts warn prolonged political uncertainty will ta ke prolonged political uncertainty will take its toll on sterling and the economy. not so in france — the euro strengthens as macron's new party en marche takes control of french politics. this is world business report, where we will now focus on the business and economic implications of the elections in the uk and france. let's start with the uk. the prime minister, theresa may, has formed a new government but without a majority in parliament she is relying on an alliance with northern ireland's
largest political party, the democratic unionist party. but while the dup insist their relationship with may's team has been close since she became prime minister, 11 months ago, any alliance will come at a price, as joe lynam explains. an economic terms, they are less developed than the republic of ireland or the uk. it has low levels of productivity and is heavily dependent on the state. those sectors apart from the state that it relies on our tourism, manufacturing, and food. and they need large supplies of low skilled labour, mostly from eastern europe, especially poland. and if britain is to lead the single market, and that is the stated policy, then the dup may ask the conservatives for an exemption when it comes to the free flow of labour to northern ireland. on top of that, they will want london to pick up the $450 million a
year that brussels seems to belfast in agricultural subsidies. and that comes on top of the $1 billion a month that london fans already to belfast. and then there is the political bribes, or poor, as it is known as. they will want more investment in infrastructure. that means that their roads and rail projects, which might otherwise be uneconomical, will be built, and will not be shut down. those with some of the issues that could be the agenda. with me is simon french, chief economist at panmure gordon. good morning, simon. so much to digest and discuss. for market a really uncertain time which they observe the head. but if we look at of the other issues, business optimism has plunged over the weekend. and as higher than it was after last yea r‘s weekend. and as higher than it was after last year's decision on leaving the european union. give us
your take on all of us. what you haveis your take on all of us. what you have is domestic economic uncertainty put on top of brexit economic uncertainty. it is a double whammy. i think most assumed that the conservative manifesto was go to be lamented domestically. they knew that brexit was an uncertain outcome for at least two years, but you now have that multiplied twofold. and therein lies a lot of deep sentiment that we have seen out of business over the weekend. if you add to that some of the economic issues on top, like consumer spending, the latest figures show that it is falling in may for nearly the first time in four years. this is inflation tightens its grip. there is a lot of headwind and stir —— sterling been depressed all the time. so how is this organ to play out when theresa may is trying to me desperately, to stay in power, and form a government that she hopes will be stable and
strong, but could be far from that she hopes will be stable and strong, but could be farfrom it? consumer spending was all ready under pleasure. you mention the weakening sterling. —— under pressure. households have pulled back on their spending as a result. that is a difficult backdrop for politicians while they deal with brexit and pushing through a domestic agenda when they are going to give vital votes in parliament. and additional public spending in certain areas to buy a vote is may well be the theme of however long as parliament goes. and that does not a lwa ys parliament goes. and that does not always generate the best economic policy—making, because you end up having to appeal to people's political instinct, rather than assessing a project on its real merits. and business leaders and market watchers have two work out what it means, a conservative government with the dup of northern ireland, and what that means for economic policy, but also the brexit negotiations. cheesemaker. so taking
a conservative economic policy foes, adding additional spending in northern ireland will be a fan to try and secure the votes on a deal by deal basis. they can adapt to seek cross party support. on brexit, there is a potential here for a softer version of brexit is at —— as a result of backbenchers wishing the gunmen to this offer. sterling has been so softer. —— pushing the government. you may well see a rally as the market looks at this and sees as the market looks at this and sees a softer brexit down the pipeline that we would have assumed under a conservative majority. thank you so much to your analysis this morning, simon. there will be more of that, because in the news review, will be looking at some of the newspapers and what they are discussing this morning, following thursday's election. but let's ta ke following thursday's election. but let's take you across the water to france. things could not be any more different. the new centrist party of french president emmanuel macron looks on course to win a landslide victory following the first
round of parliamentary elections. projections suggest en marche could get as many as three—quarters of the seats in the assembly. the final outcome will be decided at a run—off next sunday. mr macron's party was established just over a year ago and many candidates have little or no political experience. joining us now is tomasz michalski, professor of international economics at the hec international business school in paris. good morning to you. give us your ta ke good morning to you. give us your take on this, not landslide, but this extremely strong rally behind emmanuel macron and his new party, and what it means for the economy in france? well, this gives a space for long—awaited reforms, that is for sure. along with the republican party, which is going to have the
larger part of the seeds of the remaining seats. we are looking into a 90% pro reform majority in the parliament. so we can, this is a once—in—a—lifetime chance, that there is could be a reform agenda pursued. and already, we know what the first battle will be. it will be reforming even slightly the labour code. let's talk about that. that was a key plank of his election campaign, that he would be the man to deliver on that, where francois longed and nicolas sarkozy had failed. —— hollande. but will he deliver? this is to be seen. the political situation, or you would think, could not be more favourable. yet even with such a huge majority
on the cards, his go to try to push the legislation for a fast track authority that isn't to limit their discussions in the parliament. there would be to try and sign before september, when people return back after vacation. but this is made more surprising when jean—luc melenchon said let's defend the labour code. so could be a heated fall, because the opposition will not be the parliament, they will ta ke to not be the parliament, they will take to the streets. we have seen that before. thank you forjoining us that before. thank you forjoining us this morning, tomasz. let's now mention what is happening at uber. it has been in the headlines are lot lately. —— a lot.
uber‘s chief executive travis kalanick could be forced to take a leave of absence under changes reportedly being considered by the firm. a decision on whether to alter travis kalanick‘s role was set to be taken at a meeting of uber‘s board on sunday. reports also suggest the company's chief business officer is planning to resign as well, as soon as today. all this trouble at the top follows a review in february afterformer uber engineer susan fowler made claims of sexual harassment. there has been an investigation into that sense. having a look at the markets began, now. the pound is still lag wishing after having fallen i.6% still lag wishing after having fallen 1.6% from friday. it is bumping along that low level. the euro is bumping along a little bit, and that is how the markets are changing in asia today. —— trading. stay with us. much more to come in just a moment. the news review in just a
the news review injust a moment. but let's first talk about a vintage coach which serve the shetland islands for three decades. it will start an epic homecoming journey today. the restored bedford ob — which was built in 1950 and has a top speed of forty miles per hour — has now been gifted to the islanders. but first it must be driven 1200 miles from its current home in norwich — as fiona lamdin reports. this 1950s bedford ob is finally on her way home. and behind the wheel 73 rolled jon watt. for years, this pair were 73 rolled jon watt. for years, this pairwerea 73 rolled jon watt. for years, this pair were a lifeline 200 living on the shetland islands. we used to go down to sunday school picnics with great excitement, going for the beat of the day, with everybody‘s pa rents. of the day, with everybody‘s parents. that was a big adventure.
many miles and years of service, in 1979, she was brought south, any of the norfolk for retirement. nick taylor has spent the last six years restoring her. but nick is gifting the bus back to the island from when she came. and here are the keys. to give a much. and serve the next alldays, the team will travel 1200 miles at 40 miles an hour to get home. people will love it up there. —— the next four days. it is not pa rt —— the next four days. it is not part of my history, it is part of their history, really, and that is where it should be. soa so a very important day there for that reason. still to come, we have a packed agenda for you. in 17 minutes, you can join a packed agenda for you. in 17 minutes, you canjoin dan and the weasel practice. they will have all the day's news, business and sport. they will have more in the fallout
from the general election as the tories try to stretch it to you with northern ireland's dup. —— try to strike a deal. this is bbc news. the latest headlines: the british prime minister, theresa may, will hold herfirst cabinet meeting today since the election that plunged her government into crisis. senior ministers reappointed by mrs may have publicly given her their backing. the party of the french president is on course to secure a landslide victory in parliamentary elections. emmanuel macron's party, which was set up a year ago, received 32% of the vote in the first—round poll. and preliminary results from kosovo's parliamentary election indicate a victory for the centre—right coalition. a former prime minister, who was indicted by serbia for war crimes during the conflict in kosovo, could return to office. and away from politics, let's talk tennis. rafa nadal has won the french open for the 10th time. he
beat stan wawrinka in straight sets. nadal, who came back very serious wrist injury last year, did not lose a set in the whole polmont. —— tournament. let's have a look at how the news organisations at ourjesting all of the events over the past few days. the ft says uk prime minister theresa may faces a showdown with conservative mps after losing her parties majority following last week's general election. the paper says mrs may is now looking to shore up her position while former uk finance minister george osborne has labelled her a "dead woman walking". the irish times looks at further pressure upon mrs may as ireland's prime minister enda kenny's warned the uk prime minister over making a pact with the democratic unionist party which could put northern ireland's peace process at risk. le figaro reports french president
emmanuel macron's en marche party looks to be on course for a landslide victory in parliamentary elections. the party has won nearly a third of the vote in the first round. on the front of the times, us president donald trump's state visit to britain may be put on hold after mr trump allegedly told theresa may he would not come to britain if he was met with large public protests. the telegraph business section says there a questions over the future of uber chief executive travis kalanick following a scathing report into the us transport technology giant's company culture.