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tv   BBC Business Live  BBC News  June 22, 2017 8:30am-9:01am BST

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this is business live from bbc news with ben thompson and sally bundock. divided by brexit — as leaders gather for a summit in brussels — we look at what the other 27 eu members want out of britain's departure live from london, that's our top story on thursday 22nd june. immigration, trade, human rights or reform. as brexit talks continue, we'll assess what's at stake for the uk and the rest of the eu. also in the programme... the tussle over toshiba. overseas tech firms say they'll still want to buy the ailing tech firm, despite government efforts to keep it injapanese hands. and it was a disappointing session in europe and the us yesterday, with falling oil prices, and inflation denting confidence. oil prices are now down 17%
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from the peak in may. taking the human out of human resources. we meet the woman who's software aims to automate the personnel process in the vibrant nigerian economy. today a survey reveals that four in ten millennials have no pensions savings so let us know... who or what will look after you in your old age? just use the hashtag bbcbizlive. sally, i'll look after you in your old age. it will probably be a robot, he will do a betterjob of starting the programme than i did. we start in brussels where as you've been hearing — european union leaders begin a two day summit. top of the agenda of course —
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brexit — after formal talks on the uk's departure from the eu began this week. but there are different views around europe on what brexit should look like — let's take a look. the new french president emmanuel macron wants to keep britain a close partner — saying the "door remains open" to the uk changing its mind about leaving. for germany's chancellor angela merkel it's about maintaining the core principles of the eu. like the single market and freedom of movement. she has urged other member states to stand firm over these. in italy, brexit is very much being seen as a wake up call for europe. it's demanding eu reform especially on curbing migration from outside the union. then there's ireland — which will have the eu's only land border with britain. checkpoints with northern ireland were scrapped at the end of the troubles almost 20 years ago
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— it's worried a "hard" border will hurt trade. finally — a big issue of course for all the countries — the future of the 3.6 million eu citizens living in the uk as of last year. if affects some more than others of course — a million of those are from poland. eamonn d'arcy is a professor at henley business school. he is here to represent the view of ireland, good to see you. give us that perspective, we touched on the view of the only land border, tell us more. view of the only land border, tell us more. i think the direct impact will be greatest in ireland, particularly because it has the only land border but it reflects the relationship between ireland and the uk, the common travel area has been there since 1923, more formally since 1952, the fact that ireland is one of the key negotiating priorities identified by the
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european union reflects the importance of this and also, even quite in tangible, sorry intangible —— tangible things like trade between ireland and the uk, the second busiest ever ridden a world between dublin and london, for the half million passengers each year. sorry, adding to this, to complicate things, uk prime minister looking to doa things, uk prime minister looking to do a deal with the dup of northern ireland, what will that mean in terms of how this plays out, is that good or bad for economics and trade, we leave the politics alone, that's extremely, the catered. there are positives and negatives. the dup had a meeting with the new irish prime minister last friday in dublin, they came out talking about a sensible brexit which works for northern ireland and the republic and i think we have failed to understand that northern ireland particularly is quite dependent on trade with the eu and probably up to 30% of its
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exports come from that macro or exported to the republic so it's important for the northern ireland economy as well as the republic. and what we understand we are looking at a dealfor it what we understand we are looking at a deal for it the what we understand we are looking at a dealfor it the uk will be what we understand we are looking at a deal for it the uk will be outside the customs union and the single market so will that be very damaging for ireland or is ireland already given review for that outcome and positioning itself? the fact that the new cabinet in ireland last wednesday week, we have the minister forforeign affairs wednesday week, we have the minister for foreign affairs is designated to be the brexit minister, that reflects a clear recognition of this at the level of government. i think there are going to be impacts, there was a report this morning from the economic and social research institute in dublin which suggests a monetary impact might be in the region of over 600 million euros over three years, other important issues relate to the way in which particularly the food industry is dealt with, i think that's furry important but the wider context, a
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fa ct important but the wider context, a fact that the uk is an important trading partner, other parts of the world have become more important for ireland over time, exports to the uk since 2010 have only increased by five and a half percent in comparison to nafta which increased by aw, comparison to nafta which increased by 44% and others which increased by 5196. by 44% and others which increased by 51%. the balance and composition of trade in the irish public as trade -- is trade in the irish public as trade —— is changing. trade in the irish public as trade -- is changing. we appreciate your time and analysis. and just to say, the two de summit kicks off now embrace all is and we keep you across any news coming out of that. we will. —— the summit kicks off in brussels. let's take a look at some of the other stories making the news... shares in the car parts maker takata corporation have slumped
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by more than half following reports it could be preparing to file for bankruptcy. it's lost three quarters of its value since last week. takata is at the centre of the car industry's biggest ever recall — nearly 100 million cars — over faulty airbag inflators. george clooney‘s luxury tequila brand is being bought by drinks giant diageo — in a deal that values it at up to $1 billion. casamigos, which means "house of friends," was founded in 2013 by the hollywood star and his friends — nightlife entrepreneur rande gerber, who is married to model cindy crawford, and real estate developer mike meldman. iran's zagros airlines has signed a deal to buy 28 new airbus planes at the paris air show. it will take 20 new a320 neo jets, and eight a330 aircraft. iran has stepped up its order of planes following the lifting of international sanctions.
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it is updating its ageing fleet. how can tequila be worth $1 billion? if you have george clooney involved, his brand alone adds value. you are a bit ofa his brand alone adds value. you are a bit of a fan, i'm due? well, you know, i'm not saying it either way, george clooney, if he wants to be on the programme, we have something to talk about. you are very welcome george. you sound very envious, have you got clooney envy? it's $1 billion, he is not going to be envious? the boss of foxconn has said he will still try to buy toshiba's chip business, despite news that a government consortium has been named the preferred bidder. mariko oi is in singapore... nice to see you. we won't ask you about george clooney but phil are saying about the latest on toshiba!
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i had saying about the latest on toshiba! ihada saying about the latest on toshiba! i had a perfect answerfor you but i'll answer about toshiba. tell us, tell us about george clooney, i want to know. i think we all should start our own tequila brand and try to match that. anyway... just yesterday we told you that toshiba appears to have selected the japanese remained led group as a preferred but the issue was that the offer was lower come third to the one offered by the thai burmese company and its been speculated that toshiba might be relu cta nt to ta ke speculated that toshiba might be reluctant to take the offer because of that close ties with china. but to be fair, the company which took over at another troubled company sharp, sharp is starting to make money and its applying to relist its shares on the tokyo stock exchange so at the foxconn agm, the boss said
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he is not giving up on buying the crown jewel of toshiba, the only unit that seems to be still making money. and hopefully we'll find out the toshiba final decision by next wednesday when toshiba holds its shareholder meeting. good stuff, thank you. we have a little break from george clooney news and i'll talk about the markets. the story we mentioned in the round—up, to cats and the airbag recall weighing on the nick cave. shares coming down. we then following the roller—coaster rides over the next few months and it could now end up in the ba n kru ptcy it could now end up in the bankruptcy court. weaker oil prices dragged down the us markets too. oversupply of shale and concern about saudi arabia's policy towards oil and opec have left markets a little tense. in europe we get eurozone consumer confidence figures later today — expected to see a slight improvement
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— but that's ahead of those brexit talks — and as we've been hearing — what the uk's departure could mean for everyone else. maybe it will mean nothing, maybe they don't really care that as we have heard already, the repercussions likely all around the world. first let's head to the us and michelle has the details about what's ahead on wall street this thursday. how healthy are the american financial institutions, can they withstand recession? the federal reserve will release results of its round of stress tests, the first round of stress tests, the first round and these were mandated under the frank reform law. wall street will learn how much money hangs can devote to dividends and stock buy—backs over the next year, but was one of those banking stock
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investors, king attention to accentuate, the consulting firm expected to report a rise in its third 40 expected to report a rise in its third a0 revenue and a drugmaker my long faces a key test from shareholders, hitting the headlines after hiking the price of heavy pins, several large us pension funds are pushing for key executives to be ousted. that was michelle and the united states, looking ahead to the day in wall street. good morning to trevor who is a representative of royal london asset management. the pound has been on the weak side, i don't think today will be that critical for the pound, it's i don't think today will be that criticalfor the pound, it's more about the reciprocal rights for the uk and eu citizens and that should
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be relatively uncontentious but there's loads of contentious stuff coming along. we would expect to see moments where it feels like the two sides aren't talking to each other, maybe we start to worry we will leave without a deal and the pound could weaken, there is lots of possibilities, at the moment with a hung parliament you have rebels within the main parties pushing for a much softer brexit, maybe staying in the single market, if the markets said that, they could go up. for currency speculators this is a gift, to what extent do they exaggerate the move in stirling, do you think? i don't know, i would say the speculators, the markets, dry to work out what the sensible level for the pound is based on the economic fundamentals and the key thing is, when the brexit boat happened, the pound fell about 15%. because markets took the view that the uk economy will be weaker and this is what the markets are focused on, is
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the uk going to come through absolutely plain sailing, leaving the eu, fine? maybe the pound has to go for that reason, more difficulties, i think it will go down. the old price was on a moment ago, if we were god since the start of the peak, it is down 17%, too much supply, not enough demand, and now this concern over what saudi arabia is going to do, where are we? the energy markets seasonally is usually strong in the summer, it's the summer driving season in america but supply coming out of the woodwork, us showers they've managed to do that cheaply, it was at what one could they not afford to get it out of the ground, normally it's more expensive. the root account has risen quite rapidly, coming back on stream, but personal western over the dollar, the chinese economy suggestions that it's slowing down. we may be getting a forewarning of
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bonds ahead for the stock market, people focusing on the weaker data in china. people buying equities, interest rates low, which is not rising, the central bank will keep things moving. trevor, thank you. trevor will be back later and we will be grilling him about pensions. that kind of what he does for a living. and lots of you have been in touch about what you think will happen when you retire or get older. keep your comments coming in. this is all to do with the number of young people who don't have any sort of savings for old age. it is not just young people either. middle—aged. still to come... we'll meet the woman whose software firm is aiming to automate human resources in nigeria. but is it a good idea to take the personal out of personnel? you're with business live from bbc news. when i was little, i used to go
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strawberry picking. it was great fun. we ate more than we brought home but it was great. think of summer — maybe you think of strawberries, raspberries or salad tomatoes and lettuce. all that fresh stuff that is in season in the uk. but there's a warning today that british farms can't hire enough workers to pick the fruit and salad, with more than half of farmers saying they don't know if they will have enough migrant workers to harvest their crops. many growers blame the weak pound, which has reduced their workers' earning power, as well as uncertainty over brexit, according to a bbc survey. sean farrington is on a soft fruits farm in surrey. good morning, we are actually farm in surrey, mainly strawberries, they do lots of other food here, where we are talking about this bbc survey where more than half of growers of fruit and salad across the country area bit fruit and salad across the country are a bit worried that this summer they won't have enough migrant workers coming from overseas to be a will to pick all the fruit needed
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over the summer. we can talk to lawrence, who represents the british summer lawrence, who represents the british summerfruit lawrence, who represents the british summer fruit industry. lawrence, lawrence, who represents the british summerfruit industry. lawrence, how important our overseas workers to the british fruit industry? absolutely vital, 95% of our workers are from europe, and if we didn't have them, we wouldn't have an industry. and so what are the key thing is, is it brexit negotiations, the strength of the pound or the wea kness the strength of the pound or the weakness of the pound making these workers think i might want to work elsewhere, what other things that would change that would help you out? we are losing workers because of the devaluation of the pound, 50% reduction, remittances will be lower, but also there is a xenophobic feeling that they are not welcome in this country. it is a global market. we have growers in portugal who are employing romanians and bulgarians. they can go anywhere, they don't have to come to this country. what difference does it make us if the workers are going elsewhere around europe, so we may
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have to get our food from elsewhere around europe, does it make much difference to consumers around here? we import 140,000 tonnes or so, if we had to import half of that from holland, belgium and america, our prices would go up by 50% at least, because they are not waiting for us to to say we want their fruit. the businesses here have that uncertainty. the price of fruit in the uk couldn't up going up if those rules don't go in the way the industry wants them to. you're watching business live. our top story, european union leaders are beginning a two day summit in brussels. brexit is of course top of the agenda, after formal talks on the uk's departure from the eu began this week. today is the first time the uk prime minister theresa may will face european leaders after she lost her
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parliamentary majority. an interesting day ahead in brussels. an interesting day ahead in brussels. when you apply for a job — these days, chances are that it's a pretty formal affair. paperwork, interviews and short lists. but in nigeria things are a little different. hr in the country is informal at best, but the market is growing. our next guest is starting an industry from scratch. nigerian female entrepreneur, chika uwazie, has launched talentbase — which is available to small and medium—sized firms across africa. the software enables users to manage the records of their employees, create employee roles, as well as being able to track development of their staff with performance reports. and she's hoping talentbase will help african firms move away from paper systems to a more automated one. chika uwazie, the chief executive of talentbase, is with us now. really nice to see you, thanks for
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coming in. so do tell us in a bit more detail the problem that your softwa re more detail the problem that your software sort of resolved to a degree in nigeria. yes, so, in nigeria, and across africa, 90% of small to medium enterprises still use very manual processes, and when i say manual, it is paper. they are still going to the bank physically to pay their employees, they still use xl to do very complicated tax sums. one statistic that surprise me was the number of adults in nigeria that don't have bank accounts. something like 56% of nigerian adults who don't have access to an account, how does your system help? yes, and so we did was we took it a step further. so primarily, hr systems across the world can pay into a systems across the world can pay intoa bank systems across the world can pay into a bank account, that because so many nigerian adults and across
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africa don't have a bank account, we partnered with an organisation so you could also pay into a mobile wallet, so then you also get access toa wallet, so then you also get access to a credit card, so now you are added to the financial system, you can do normal payments and you can withdraw cash at an atm using your card. the government are rubbing their hands with glee, because it means they will get more tax reve nu es means they will get more tax revenues in, presumably, if this system is so easy to follow through. whereas if you had to go to the bank to collect your wages and pay your taxes, you are less likely to do that. yes, and so currently across nigeria only tempered scent of people are remitting their what we call pay or employee taxes, so we are partnering with the government to actually automate that process, so that employers can pay on behalf of their employees their taxes. you have made it all sound very simple for us, so we are grateful for that, iimagine for us, so we are grateful for that, i imagine when you have conversations with banks or financiers trying to get funding to set up this organisation, as we said, you are sort of doing it from
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scratch, might have been a little bit more difficult? yes, very difficult! because when i started this business i thought i would plug in with a regular system and start a new payroll and i didn't realise how broken the system was. we took it upon ourselves to go to the banks and integrate into the banks is dumb. the first few banks we went to was like, no, i don't understand this, i don't see the need for this, so it definitely did this about a year to get the first bank on board. now we have four banks on board and gives us access to 80 african countries. i was just gives us access to 80 african countries. i wasjust about ask you that. you are operating in nigeria, but this could be something used anywhere in africa presumably? yes, definitely. i2 other bank partnerships have access to 18 countries, we are looking to go to francophone next year and then east africa, starting with kenya. exciting, chika, thank you for coming in. in a moment, we'll take a look through the business pages but first
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here's a quick reminder of how to get in touch with us. the business live pages where you can stay ahead of all the day's breaking business news. we will keep you up—to—date with all the latest details, within sight and analysis from the bbc‘s team of editors, right around the world, and we want to hear from you, right around the world, and we want to hearfrom you, too. get involved on the bbc business live web page. on twitter. and you can find us on facebook. business live, on tv and online, whenever you need to know. joining us is trevor greetham, head of multi asset at royal london asset management. loads to talk about but i'm interested , loads to talk about but i'm interested, as we discussed earlier, this story in the paper, four in ten millennials have no pension provision. we all know that we should be saving, but it is one thing, knowing we shared, very different to actually doing it. yes, it is. but you can turn that around,
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six in ten millennials do have pension provision, and that is because oporto in roman. if you ask the same question in 2012 you would have had a much lowerfigure, so it is not where everyone wants it to be but it is getting better. that auto in roman, the point is you actually have to physically, consciously opt out, so you are kind of nudged into putting a small amount of money into a pension early on, and if you want to opt out you can but most people actually don't. we were asking at the start of the programme for viewers to say who will fund your retirement. allison says doesn't national insurance play a part? yes, but those who have saved sensibly all their lives shouldn't have to pay for them. sean says i am in a good position with a private pension but could not say the same when it worked in retail. that is a really patchy picture. colin says, in terms of millennials not putting aside the pensions, he says good on them. the government local authority would only take all their savings anyway once they become ill. this is very
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controversial right now because of what was not in the queen's speech yesterday with regards to pensions, things like the dementia tax and these kind of things, it isa it is a really tricky problem to solve. it is, but the earlier you start trying to do something better. in that same survey, a lot of millennials are quite sceptical as to whether they will ever get a state pension. is it a case of burying your head in the sand, i could get on housing ladder, can't get a pension, so it isjust going to enjoy now. as you get older you start to think i was sure started earlier, that is what the auto enrolment can do. but increasingly people will find themselves saving for other reasons, and perhaps some of that saving becomes long—term saving, so people might use and i account for example. the thing we say is don't save for the long—running cash, cash rates are way below inflation, you are giving money to the government if you do that. multi—asset. money to the government if you do that. multi-asset. an old tin under the bed. thank you very much. good morning, if you found last
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night a bit too uncomfortable for sleeping, the good news is that over the next few days, it will turn much fresher, but if you need reminding, yesterday was the hottestjune day since 1976. temperatures got to 3a.5 celsius at heathrow. but that signals the end of this heat wave, because it is turning much fresher over the next few days will stop cooler air gradually sinking south and east to, this morning a few thunderstorms around central and southern parts of england. those will drift east would scupper a few storms perhaps around the lincolnshire area and the wash. but further north and west it is looking largely dry this morning. eight bit of patchy rain towards western scotla nd of patchy rain towards western scotland but eastern and southern scotland, northern ireland, there will be some sunny spells and temperatures this afternoon about 16 to 18 degrees. a much fresher feel to 18 degrees. a much fresher feel to the day across much of england and wales with some sunny spells that are this afternoon,
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temperatures a good 10 celsius lower than yesterday but i think towards kent, here you are just about holding onto that heat we have had. still temperatures could reach 2627 but eventually that heat in the far south—east will this appear. and going through the evening, clear skies taking us into friday, but more rain spreads into the far north—west of scotland. that is tied into this area of low pressure, which could be with us over the next few days, also bringing in fresh conditions towards north and western areas, so quite changeable over the next few days. during friday, rain spread southwards, it will break up as it does so, so for many southern area staying dry with a bit of sunshine. sunshine as well for scotland, northern ireland, but in between quite cloudy, a bit of rain in between, top temperatures 17 to 2a. how about the weekend? again, fairly changeable. plenty of dry weather but some patchy rain across southern areas i think on saturday, some rain in the north west of
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scotland, mbodj is where they should be really forjune. and by sunday, again maybe if you shower real brea ks again maybe if you shower real breaks of rain in the northern areas, drier conditions towards the south, quite cloudy again and temperatures 16 to 23. to sum it up over the weekend, fresher certainly, quite breezy at times, lots of cloud around but there will be some sunny spells and a few showers from time to time. goodbye. hello, it's thursday, it's 9 o'clock, i'm joanna gosling, welcome to the programme. forced to resign — the boss of kensington and chelsea council nicholas holgate steps down amid criticism over the response to the grenfell tower fire — he says he was told to leave by the government. labour says it was the right thing to do. he had to go, his council went awol in the days after this terrible fire at the time when the victims, survivors, whose family still looking for their family members who were missing, needed help on the ground. more on that to come. plus we will
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have a report on the number of other tower blocks who have the same cladding as grenfell tower. also on the programme...a warning to parents over the latest chat app
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