tv BBC Business Live BBC News June 12, 2017 8:30am-9:01am BST
this is business live from bbc news with ben thompson and sally bundock. britain's prime minister convenes her new cabinet for its first meeting since last week's tumultuous election. live from london, that's oui’ election. live from london, that's our top story on monday 12th of junne. as theresa may fights to stay in power — business leaders warn prolonged political uncertainty will ta ke prolonged political uncertainty will take its toll on the economy and sterling. also in the programme...|t could be all change at the top for uber after a damaging investigation into its corporate culture throws the transport technology giant into chaos. live from london, that's our top story on monday 12th ofjunne. away from the chaos of the uk
election, france's new president emmanuel macron looks set to win a landslide in the country's parliamentary elections. can he pushed through the major reforms that you promised voters, including cutting spending and overholding france's strict laws. do you still trust the politicians? do they deliver on their promises? or do they just say what you want to hear to win your vote? let us know, use the hashtag bbc business live. a very warm welcome to the programme. do get in touch with your thoughts. the prime minister has formed a new government, and today she will be holding her first
cabinet meeting says the election. senior ministers reappointed by theresa may have publicly given hubbard backing, but several are reported to have demanded greater influence in return for their support. meanwhile, the uncertainty caused by the general election has led business confidence in the uk to sink through the floor. that is according to a lobby group that did according to a lobby group that did a poll of 700 of its members. it is the institute of directors, which found a dramatic drop in confidence since thursday's election. mrs may does not command a majority in parliament, and is hoping to finalise an alliance with northern ireland's dup. which has its own economic concerns. as ireland's dup. which has its own economic concerns. asjoe lynam outlines. in economic terms, northern ireland is less well—developed than the rest of the uk, all the republic of ireland. it isa uk, all the republic of ireland. it is a small economy, which has low levels of productivity and exports and heavily dependent on the state. those sectors are —— apart from the
state that it relies on tourism, manufacturing and fruit. they need large supplies of low skilled labour, especially from eastern europe and pollen. if britain is to leave the single market, and that is the stated policy, the dup may ask ofa the stated policy, the dup may ask of a derogation of labour. they want london to pick up $450 million per year that brussels sensed the belfast in agricultural subsidies. that comes on top of the $1 billion per month that london sends already to belfast. and then there is the political, expect the dup to want a lot more investment in infrastructure. joe lynam with some of the details as we know them so far. with me is david owen,
chief european economist at the investment banking firm. nice to see you, welcome to business live. running through some of the issues, so much to ring and throwing about whether a deal has been done with the dup. to start off where we are economic league, this comes amid are economic league, this comes amid a changing economic picture, both for the uk a changing economic picture, both forthe uk and a changing economic picture, both for the uk and northern ireland, they are really struggling. yes, the wheels have been coming of the uk more recently, and we had some very disappointing figures in the first quarter which seem to be carrying on into the second quarter. in terms of northern ireland it has significantly underperformed. even scotla nd significantly underperformed. even scotland in recent years. i think with the dup there will be a lot more spending with the north america economy in particular. but it is sort of just about struggling out economy in particular. but it is sort ofjust about struggling out of recession. compared to the uk, it has done very badly. there is a lot of horse trading done right now and in the days ahead. whilst that is
ongoing, business leaders have stepped to the institute of directors that confidence has fallen dramatically, more so than after the outcome of the referendum to leave the eu, which is interesting. brexit secretary david davis told bbc radio that the uk will still continue with its plans to be out of the single market. what do you think the outcome will be for brexit? one of them actual things following results on the friday was that there would bea on the friday was that there would be a push for a softer, more managed brexit. we need the eu to agree to that, but a softer brexit is certainly on the cards. being within the customs union and having as much access to the single market as possible is obviously where we are going. the problem with being inside the customs union is you cannot strike new trade deals with other countries outside the eu, and the uk will still have to pay for the privilege of having that access. a softer brexit is now what is going to be called for, that's fairly
obvious. in terms of the dup, they don't want a hard border between the north on the south of ireland and they still want as much access as well, because they want good to be moving through ireland. from a european view looking out towards the uk, things have fundamentally change. if you are a european leader, you were told that theresa may would approach the negotiations with the hard line. things have done a 360, and they are saying what they wa nted a 360, and they are saying what they wanted something entirely different. it depends how they play this. if they offer concessions to the uk, you can imagine the scenario where we do not leave the eu at all. that is entirely possible. is that feasible? i don't think so. i don't think eu will come back with concessions and the uk decides it is not worth going along with this line. we will have to see as soon as those negotiations commence, there is going to be the financials are from and, how we play that.
obviously they don't want to blog about new trading arrangements, until we have settled in principle by financial market. the whole thing is going to be pretty toxic. the bushin is going to be pretty toxic. the bush in the uk will be for a softer brexit, that is clear. the eu should recognise that, there should be a transitional phase which will be helpful for many businesses to work out where we are eventually going. things are three up the moment. —— things are very up in the air at the moment. we will talk about the market reaction later. let's look at some of the stories... uber‘s chief executive could be forced to take a leave of absence under changes being considered by the firm. reports say the company's board met on sunday, but hasn't yet released details about mr kalanick‘s future. other reports also suggest that the company's chief business officer may resign as soon as today. we'll have more on this from new york in a moment.
jaguar land rover has made a $32 million investment in the minicab—hailing service lyft, according to the times. lyft is raising money to help compete with bigger rival uber. last year it received investment from general motors. chinese box office ticket sales could have saved the hollywood film the mummy after its weak opening in the us and canada. it brought in $70 million in china and south korea alone — setting records for films starring tom cruise in the region. the strong start shows big—budget action—adventure films remain particularly popular in east asia, despite waning interest in north america. i was looking at the wrong camera! let's look at what is on the business live page. a lot of reaction to the shenanigans over the weekend as far as uk politics is concerned. the pound is steady at the moment. of course, right next to
it, business leaders and politicians are calling on theresa may to consider her strategy on brexit. of course there is a real concern about what the election outcome means for those brexit negotiations that are of course due to begin very, very shortly. that is the top story on the page. the institute of directors poll shows a dramatic drop in confidence following that result of the election. shares in toshiba have soared today, after reports that western digital has raised its offerfor toshiba's chip business to $18 billion. it needs that money to deal with its failed nuclear business in the us. leisha chi has the details from our asia business hub. all of these are just reports but it was enough to send their shares through the ceiling. exactly, shares rose by more than 9% in tokyo, which shows that investors are cheering
the possibility of toshiba getting a good for the chip business. they aren't very deep financial trouble and they need raise a huge amount of money —— they are in very deep financial trouble. this chip sale, the world's second—biggest producer of flash memory chips is crucial to that. it is toshiba's golden egg. with a company planning to raise its offer, it shows the stakes are high. according to these reports, it is a last—ditch effort to buy the division. the problem is, any purchase by western digital would face major anti—trust concerns in america. so we believe that chip—maker broad, and a private equity firm called silverlake are actually in the leading to buy this chip unit. toshiba chairs on the way up, which is unusual because technology stocks were falling in asia today of the back of a big fall
in some of the value of the big tech names listed on the nasdaq, the likes of apple, microsoft and co. we will talk about that issue in a moment in more detail. the markets we re moment in more detail. the markets were fairly downbeat in asia this morning. that is the close on friday in the us. let's have a look in the europe right now. so much for investors to get their heads around. the ftse 100 investors to get their heads around. the ftse100 is down by a third represent, no surprise given the turmoil politically in the uk. the one booking the trend is in paris, doing well off the back of that strong result for emmanuel macron in the parliamentary elections on sunday. we will undertake that further soon in this programme. and samira hussain has the details about what's ahead on wall street today. the big news breaking event this week is the federal reserve meeting. america's central bank starts its two—day meeting on tuesday. whilst other economic indicators point to a
strengthening us economy, inflation remained stubbornly low. we will find out if interest rates are going up find out if interest rates are going up on wednesday. following that announcement, the federal reserve chairjanet yellen is holding a news conference and guarding that decision. also happening this week, either is expected to release the findings from its much and as they did report —— uber. by the former us attorney general, he was called in to investigate workplace culture and practices after allegations of sexual harassment at the company. the findings and recommendations for improvement will be presented to uber employees on tuesday. we are going to talk more about that when we look at the business pages in the newspapers a little later. joining us is david buik from panmure gordon. good morning, sally, good morning, ben. interesting weekend. let's that emmanuel macron in perspective, he
did a fantasticjob to get a majority just like that. did a fantasticjob to get a majorityjust like that. but it is all down to whether he can make the unions come to hand and the labour changes, and that is a real problem. we will discuss that in detail about later. so much still to come. a big week as far as they do is concerned. i have just looked that the list. uk inflation figures tomorrow, a fed meeting in the us on wednesday, uk unemployment data on thursday, we get a great decision in the uk, the markets in japan, get a great decision in the uk, the markets injapan, where to start? consumer confidence today as well. first and foremost, the iot figure is not surprising, if it is still the same in one month, we have to worry. consumer confidence is not likely to be good. inflation has been up towards the 3% level but i think you will find the drop in 5% in oil prices, we may have hit the top for the time being. employment data may be slightly worse off, but i doubt it very much because i think
still we have sufficient business to make it sustainable because it is on a temporary basis. a lot of these are lagging indicators. very quickly, the fed, i think we have had disappointing, not disastrous, but disappointing payroll figures. also, rather benign wage inflation. and because chairmanjarlan is so conservative, i think she will not change it this month but leave it until september —— janet yellen is so conservative. the business leaders are saying they hate the idea of uncertainty in the next three months because it is going to affect investment badly and we need to pick up consumer confidence. until we know how the early stages are going to go between the uk government, david davis particularly, and the eu, people are going to have their pockets on the floor, and that doesn't help. but a softer brexit, which you discussed earlier, is inevitable. particularly
of the immigration policy, which will be softened. we saw from air bus that unless you do that 10,000 jobs are under the course in the uk, and that will have a spill—over effect for another 100,000 jobs. long—term, it may have the desired effect that will be very good for the uk economy. david, thank you, nice to see you. it is about swapping one set of uncertainty for another. still to come: en marche! he won the ppresidency and now looks set for a landslide victory in france's parliamentary elections but can emmanuel macron push through the tough reforms he promised, including cutting spending and reforming france's tough labour laws? that's all coming on business live. stay with us. we're on bbc news. france in a moment.
the result of the uk general election has resulted in a dramatic drop in business confidence according to the institute of directors. they polled 700 business leaders over the weekend who warned that quick progress was needed on brexit negotiations. so, how is the city feeling? steph mcgovern is there this morning. hello from just outside the bank of england where lots of people are starting their working week wondering what on earth all of this political uncertainty now means for them? and not political uncertainty now means for them ? and not least, political uncertainty now means for them? and not least, businesses across the country looking at what impact it might have on them. we have gotjustin with us. there are lots of ways at looking at this. one, the currency, we saw some movements last week, but that's sort of stable. and two other areas, confidence and confidence. business confidence. consumer confidence. business confidence we've had the institute of directors report out
showing business losing a little bit of confidence, but consumer confidence certainly, we've got issues there. consumers buying less, and heavily indebted and that will impact on you and i spending stuff. that confidence has been hit by uncertainty. we don't know what's going to happen next? that's the problem. we're not sure what is happening with brexit. what the government is doing or what the government is doing or what the government is. people will say, i will wait. that's got to change. you wa nt will wait. that's got to change. you want people to know we're heading that in direction and then we'll invest and then we'll spend and then you'll get external investors come in. that's it from me here in the city of london. two familiarfaces, city of london. two familiar faces, steph and justin. it looks nice in the city of london actually. theresa may is facing the 1922 committee as it's known, the tory
backbenchers. a lot of her critics there. the full details are in the website in the coverage of that. it will be an interesting day to say the least. as we've mentioned already, the value of pound, well, it has gone up slightly since the dramatic fall on thursday and friday. many were interpreting that because they do feel that a soft brexit or a softer brexit will be the eventual outcome in the on going negotiations. you're watching business live. our top story: we're looking at the political turmoil in the uk and the fall—out for the economy and for financial markets as business leaders in one of the most esteemed lobby groups warns about the chaos and impact on business and the economy. yes, we have been asking for your tweets on the programme this morning about whether you still trust politicians
given everything that's gone on in the k and of course, over in france as we'll talk about in a moment. emmanuel macron expected to take a landslide victory in the country's parliamentary elections. liz says, "do i have trust? never have, never will. not even the ones i vote for." annabel says, "no, move it on.". will. not even the ones i vote for." annabel says, "no, move it on." . it makes an assumption that we had trust in the politicians to start with." keep your comments coming in. trading for 15 minutes across europe and france is the one standing out of the crowd. let's discuss france ina bit of the crowd. let's discuss france in a bit more detail. and now away from the political upheaval in the uk, france is also forming a new government, where emanuel macron's new party en marche is taking control of french politics. it 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. with us is dr francoise boucek, lecturer at the school of politics and international relations at queen mary university of london. good morning. good morning. welcome back. you have been here before. let's talk first of all about the challenge ahead. because on one hand we're getting caught up in uk politics where it seems nothing will happen. over in france emmanuel macron won the landslide, expected to win the parliamentary elections now too. but he has got quite a to do list ahead of him. he made bold promises on the campaign trail and people will be expecting him now to fulfil them? people will be expecting him now to fulfilthem? yes, at the people will be expecting him now to fulfil them? yes, at the same time, he is riding a wave of optimism and i think if his party gets up to 450 seats in the national assembly next
week you know france will be in a very strong position. it's economy is growing twice as fast as britain. it will have political stability. while britain is having this party politics. it is at the centre of europe while britain is slugging brew the swamps of brexit! his big promise is to reform the labour market which francois hollande failed to do. and nicolas sarkozy failed to do. and nicolas sarkozy failed to do before him. he has already talked to union leaders the how successful will he be? well, already talked to union leaders the how successfulwill he be? well, his prime minister has already started negotiations and talks with the unions and he proposes to do this this summer and use the delegated legislation in parliament to speed the process so that by the end of september they have a bill going
through parliament and the trade union is the dominant one right now is open to discussions and there are aspects of the labour reform which will have some appeal to the youth vote as well even though they have been traditionally more taken by his political message of political renewal, but at the same time his message of economic renewal which will devolve power to employers and therefore ease the creation of employment among the creation of youth where it is low. internationally we have seen him stand up to the likes of donald trump. briefly, how will france figure on the world stage now with mr macron in charge? well, in the eu first of all, he has got a good working relationship with merkel. he's established his presence over the past two weeks on the g7. on
other international fronts. the past two weeks on the g7. on other internationalfronts. he has met with putin. so, i think, he has gained a lot of co—operation and a lot of optimism on the international stage as well. time is tight, it is really good to talk to you. thank you for coming in and explaining that. we will speak to you soon. we will see how the reform get through. but nice to see you. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. 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: bbc.com/business. 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. dominic o'connell is with us.
and this is the line i will say over and overagain, and this is the line i will say over and over again, ber and this is the line i will say over and overagain, berand and this is the line i will say over and over again, ber and out. an investigation by the former attorney—general of the us has looked into uber‘s culture, it is suggested the founder may take a leave of absence. whether it is a leave of absence. whether it is a leave of absence or a real leave of absence, we don't know. ubber is moving to a mainstream company. speaking to big businesses that are making a leap. let's turn our attention to aldi, the german discount retailer this. is in the wall streetjournal discount retailer this. is in the wall street journal planning discount retailer this. is in the wall streetjournal planning a big us expansion plan? they have got 1700. they have been in the states
since the mid—# 70s, you don't think of americans turning to discount european—style grocers. of americans turning to discount european-style grocers. you think of tesco's and marks & spencer's who really failed? well, tesco failed badly and marks & spencer's failed badly. aldi has always been in it for the long haul. it came in the uk and didn't do very well and now it's doing very well, it is proceed to ta ke doing very well, it is proceed to take the long—term view in america. $5 billion to do so? to do another 900 stores and lidl will open on thursday its first ten stores in the states. gosh. we'll keep an eye on it. nice to see you. dominic, thank you. that's another busy business live. we're back at the same time, the same place tomorrow. we will see you then. see you soon. bye-bye. hi there. good morning. plenty of
dry weather around this morning. especially across southern parts of the uk, but further north and west we have got a few weather fronts giving us showery outbreaks of rain. this airflow will giving us showery outbreaks of rain. this air flow will continue to bring weather fronts. but the this air flow will continue to bring weatherfronts. but the rain by this afternoon becoming more confined to the far north—west. as you can see for most of us, it's looking fairly dry. there will be bright and sunny spells developing as the day goes on, but across scotland, it will stay cloudy and wet towards northern and western areas. temperatures about 14, 15 celsius, but towards the east of the higher ground, around aberdeenshire, there will be sunny spells breaking through and temperatures up to 19 celsius. some sunny spells in northern ireland and in northern england. for most parts of england and wales, there will be bright and sunny spells breaking through and temperatures 19 or 20 celsius in the capital. now, if you suffer from hay fever,
celsius in the capital. now, if you sufferfrom hay fever, bear celsius in the capital. now, if you suffer from hay fever, bear in celsius in the capital. now, if you sufferfrom hay fever, bear in mind that through this week, not only today, we have some very high levels of pollen. that could cause a few problems, but through the week really, it's going to stay changeable. there will be rain at times in northern parts, but it will stay warm by wednesday. temperatures potentially up into the high 20sment through this evening and tonight, a lot of that rain starts to clear away, but then we will see another batch of rain starting to move into northern ireland and scotland, the far north and the north—west of england. temperatures overnight don't to 11 to 13 celsius in the south east. for tuesday, we've got a weather front across the north and the west. that's why it's staying changeable, but high pressure starting to move its way in across southern areas. it will keep things settled. so there will be sunny spells across wales and the midlands and southern england during tuesday. further north, quite a bit of rain at times, but the rain is starting to ease away from northern england and rain continuing to move its way into northern ireland and scotland. temperatures 18, 19 celsius, but down towards the south east, warming
up down towards the south east, warming upa touch, down towards the south east, warming up a touch, up to 23 celsius. it will get even warmer on wednesday, but again for most parts of england and wales, it is a dry and settled day with sunshine at times. more cloud towards the far north and the west. temperatures 18, 20 celsius across scotland and northern ireland, but down towards the south east of england, 26 celsius, perhaps up east of england, 26 celsius, perhaps up to 28 celsius. bye— bye. hello, it's monday, it's 9am, we're in westiminster, where else would we be on the monday after that election. we are on the rooftop, why not, overlooking the houses of parliament, as theresa may insists she can stay on in downing street. i am pleased that people from across the party have agreed to serve in my cabinet and we are going to be getting on with the job of government. but talk of possible