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tv   World Business Report  BBC News  July 26, 2017 5:30am-5:45am BST

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you are watching bbc world news. i am david eades in these the headlines: —— and these are. the us house of representatives has voted overwhelmingly to impose new sanctions on russia, iran and north korea. moscow says the move would, as they put it, "complicate relations." the european court ofjustice is expected to rule whether refugees must file for asylum in the first eu country they arrive in. it could decide the future of several hundred people who entered europe during the migrant crisis of 2015 and 2016. in the uk, the government's expected to announce that all sales of new petrol and diesel cars will be banned from 2040 as part of efforts to reduce air pollution. one of the vatican's most seniorfigures, cardinal pell, has appeared in court in australia to face multiple charges of historical sex abuse. the former archbishop of sydney and melbourne insists he's innocent. details of the charges haven't been made public. 0k, time, now, forworld
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0k, time, now, for world business report, with rachel. up or down? after the disappointing growth outlook the uk received from the imf last week, today we get some real numbers for the british economy. and, after "emmissionsgate" is a new scandal brewing or vw? if so this time it's not alone, all the main german car—makers are accused of having operated a cartel. but did they? welcome to world business report. i'm rachel horne. also in the programme: will nintendo continue its comeback? sharanjit will tell us what to expect from the gamemaker‘s upcoming results. but first, later this morning the uk will unveil its latest growth numbers for the three months to the end ofjune. earlier this week, the international monetary fund
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warned that weaker economic activity means both the us and uk will expand more slowly than expected this year. however, in the numbers due out this morning, economists are expecting the uk's growth rate will have risen slightly in the last three months to 0.3%. following the brexit vote, the pound fell. this put pressure on prices — last month inflation stayed above the bank of england's 2% target rate. and higher prices, partly from imported goods, are having an impact on consumer spending. according to visa, household expenditure fell 0.3% last month, the lowest figure in almost four years. but government figures suggest uncertainty isn't deterring investors. the uk continues to be the top investment location in europe, with more than 2,200 new foreign direct investment projects announced in the last year — that's 2% up on the year before. and on tuesday bmw announced it had chosen 0xford as the location of where it will build its new fully electric mini. with me is dean turner,
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an economist at ubs wealth management. thank you for coming in. if we get that 0.3% figure that many are predicting, how does that set in the context of how the uk has grown over the last couple of years, and how the last couple of years, and how the rest of the world is going now? if we get to positive numbers, it would mark the 80 consecutive quarter of positive growth. that is a good outcome. but you need to put that in the context of the four yea rs that in the context of the four years at the start of this year. the quarter on quarter growth rate was averaging at 0.6%. so it a slowdown. and what about europe? compare to the uk, how is it doing? this is an important point. what we are seeing globally with the imf upgrading forecasts of the globe, and with the sentiment numbers coming out of europe, this suggests strong activity over there. a small economy like the uk, we expect to be doing better this time of the cycle. --
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smaller. so you are saying we should be expecting the uk to do better?‘ couple of trends are following the brexit vote and are coming through now. we saw in the first quarter numbers in the all—important service sector, which makes up 80% of the economy, that is where we saw a big slowdown in 01. i think that will continue into the current quarter as we see the effect of inflation on households, squeezing consumers. there are other areas that we will look out, and that is what is happening to business investment, now. as you pointed out already, business investment is not in decline, but it is the rate of change and growth that is important here. and i don't think we will seep particularly positive numbers here as that data comes through. as you said, the services sector is important, with 80% of our growth based on services. so that is a part that you are specifically be looking at, today? absolutely. it is what is
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there to be happening in the service sector. we have had some data recently suggesting that the manufacturing sector is doing well. we expect a decent number they're showing that manufacturing output is probably expanding. but ultimately, it is services that are going to have the biggest role. but we have the bank bank of england inflation result coming up. remind us what thatis result coming up. remind us what that is and what it could do? will next wednesday —— bon expose, it is super thursday. there has been speculation in the market is given the hawkish rhetoric we've had from the hawkish rhetoric we've had from the bank of england of late that we could see a rate hike. my sense is that barring a strong upset in today's numbers, that is unlikely to happen. growth of .2% or .3% is below the bank of england's
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expectations as they printed in their last inflation report. it will be also important to look at what the bank of england's expectations are for the rest of the year. that will give us a clue as to what would happen with policy further down the line. but think any immediate concerns about an interest rate hike next week are overdone. so you think if it is .3% as expected, we will not see a high? exactly. thank you very much forjoining us, dean. will nintendo continue its comeback? the japanese gaming giant will release quarterly earnings later. the big question — whether the portable switch console will be the money—spinner nintendo has been hoping for. sharanjit leyl is in our asia business hub in singapore. what do we expect to hear? that is right. those numbers are due out after the japanese market closes. as you say, expectations are that switch will take nintendo from strength to strength. it launched in march and immediately nintendo sold
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about 2.7 million units. we should compare that to its rivals, xbox, which sold about 3 billion units. —— 2.7 billion units. nintendo is essentially saying it hopes to send out 10 million india to come. the company did not expect that they would have promised meeting demand, but switch production was lower than what the company, based on kyoto, plant. there were reports of people lining up to buy switch consoles, suggesting that demand for the game remains strong. but do not expect new announcements about smart phone games from nintendo or any of those products at their media briefing, which they said they will not be doing for these first quarter
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numbers. sharanjit leyl in singapore, they give that analysis. —— thank you for that. volkswagen is set to hold an emergency supervisory board meeting later today regarding allegations that the carmaker operated a cartel alongside audi, porsche, mercedes and bmw, to control pricing on parts. if true, the reports would be a further blow to the german car industry, which is trying to recover after the recent vw emissions scandal. damien mcguinness reports from berlin. vw, bmw, daimler, audi, porsche. all german car brands accused of collusion. the allegation is that since the 1990s, they regularly held talks to agree costs, either for parts orfor talks to agree costs, either for parts or for technology. the aim was, allegedly, to block competition. all five car companies deny the claims or refused to comment. and it is possible that the talks were legal, held steadily to discuss how to standardise technology across the industry. but
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the news has rattled investors. when german media first published the reports, last friday, vw shares fell by 4.9%. shares for bmw and daimler dropped more than 3%. the european commission and the german cartel office have not yet launched an official probe, but are looking into the allegations. if true, this would open upa the allegations. if true, this would open up a whole new chapter in the diesel emissions scandal. that is because engine exhaust technology is also allegedly involved in the cartel. vw and other german brands are only now starting to recover from the emissions row. so another scandal would be a blow to the industry's reputation. damian maginnis, bbc news, berlin. in other news, britain is hitting the breaks on new petrol and diesel vehicles. the government plans to ban new cars and vans powered by fossil fuels by 2040.
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government officials are expected to unveil a $332 million fund to help cut down on pollution to improve the air quality. the money could go towards retrofitting buses and other transport. the reported move follows a similar announcement earlier this month by the french government. president trump says apple's chief executive, tim cook, is committed to building three plants in the us. such an investment would help the administration follow through on a big campaign promise — reviving the country's manufacturing industry. when asked, apple declined to comment. now, before we that is it i now. —— so now. —— for
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now. the retired that is it so now. —— so now. —— for now. the retired judge looking into the grenfell tower fire, samad and more there, as based more angerfrom residents at a public meeting. 0ne called the inquiry an exercise in futility. dan johnson reports. this meeting was impassioned. he did. —— heated. and more than once, the inquiry chair had to appeal for order. this meeting is broken up after august three hours talking. it has been fractious at times, and emotional. i think what the inquiry panel failed to take away is the frustration and anger that still exists, here, and the fact that some people don't have faith in their ability to do the job properly. people don't have faith in their ability to do the job properlym
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is an exercise in futility. quite honestly, i don't know why we have an enquiry that the so—called cheque, a judge, it an enquiry that the so—called cheque, ajudge, it cannot an enquiry that the so—called cheque, a judge, it cannot call witnesses to give evidence. we need to see that they are representative, that they are going to understand the pain, the humanitarian issues, because they are all very relevant in this, as well. the main reason people are angry is because they are not getting answers. whether that was right for them to get the answers is questionable. but the fa ct answers is questionable. but the fact is that people are still entitled to them. there is a lot of anger and emotion. i understand that. we will continue to work with them. and hope that by careful preparation and discussions, we can realise that we can give them justice. today, there is another meeting, when residents can question the response team about new homes. but six weeks after this fire, there is little sign of things getting much easier, here. danjohnson, bbc
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news, north kensington. and don't forget injust over 15 news, north kensington. and don't forget in just over 15 minutes, we have practice with charlie and the wheeze. —— louise. this is bbc news. the latest headlines: the us house of representatives has voted overwhelmingly to impose new sanctions on russia, iran and north korea. moscow says the move would complicate relations. the european court ofjustice is expected to rule whether refugees must file for asylum in the first eu country they arrive in. it could decide the future of several hundred people who entered europe during the migrant crisis of 2015 and 2016. in the uk, the government's expected to announce that all sales now it is time for our news review.
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we begin with the irish times and us president donald trump who has again criticised his attorney generaljeff sessions, whose future looks increasingly uncertain. mr trump said he was disappointed by mr sessions. the independent looks at new scientific research which has revealed that in less than a0 years sperm counts have fallen by more than half in western countries. scientists say smoking, diet and stress are linked to a 60% drop in sperm count. the ft says greece has returned to the international debt market for the first time in three years. the government said the successful
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bond sale was a sign that confidence in the greek economy was returning. the guardian financial pages discuss german car giant bmw, who have ended speculation that brexit would result in the new all—electric mini being made outside the uk. it says the new model will be assembled at its plant in cowley, in oxford, starting in 2019. and, finally, the telegraph says diesel car drivers in the uk will face new pollution taxes. the government says it will commit to banning the sale of all new diesel and petrol cars by 2040 in order to force people to switch to electric and hybrid vehicles. joining us is nina trentmann from the wall streetjournal. thank you
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