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tv   BBC Business Live  BBC News  August 24, 2017 8:30am-9:01am BST

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hello, this is business live from the bbc with jimmy robertson hello, this is business live from the bbc withjimmy robertson and ben thompson. top talks or hot air? the world central bankers gather in wyoming for their annual meeting, will the talks deliver any insight into the global economy. that is our top story on thursday, the 24th of august. will today's talks deliver any real progress in boosting the global economy? we will have the details on where, what why and who and if this matters? and wonder no more. china's global entertainment giant goes deeper into the red. we'll explain why. it's been a week of ups and downs for global markets. we will have an expert view on why any of
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this matters for all of us. and also coming up... this maybe little cheesy, but the interview will be great. we will get the inside track on growing demand for british cheese. who writes these scripts? we wa nt to cheese. who writes these scripts? we want to know, what would you do if you won the powerball. let us know using the hashtag at bbc bids live. i know who writes these scripts, jamie, it's the people laughing uncontrollably in our ears, chris, adrian and jenny this morning! good morning to you all. jackson hole, wyoming, population 9000 is normally known for its trout fishing, but todayit known for its trout fishing, but today it hosts something different. the annual general meeting of central bankers from more than a0 countries. the top billing goes to
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the host, us fed chiefjanet yellen. what will investors be listening out for when she speaks? top of the list will be the us policy on interest rates. there have been three rate rises since december. markets will be watching to see if she offers any indication on her plans for future risers. she may lay out some plans to share the $a.5 trillion worth of bonds, betts, to you and me, that the bank acquired as part of its aggressive money printing programme, trying to off—load some of those. markets will be looking to see what european central bank president mario druggie has to say. he is attending for the first time in three years. —— mario drag you. there is an expectation that he may say something significant, but don't get your hopes up. the rush by tel is with me from img bank. first, interest rates, a re is with me from img bank. first, interest rates, are they going to say anything about that? central bankers will be very careful about the words they use, given how
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sensitive financial markets have been two recent subtle policy since. there will be a lot of reading between the lines for us and lists to do, but those looking for any major policy announcements... they do itfar major policy announcements... they do it far ahead and give us lots of warning now. i'm not expecting anything major. there will be a lot of prep work, laying the foundations for policy changes. what about the pile of bombs sitting in a vault somewhere... i imagine it's probably not, it is electronic —— pile of bombs. pile of bonds. janet yellen is ready to start the process of shrinking the balance sheet and unwinding some of them are produced by what effect does that have on the market? it hasn't had too much of an effect. 0ne market? it hasn't had too much of an effect. one would have expected bond yields to be higher and equity prices to be of a bit. maybe the perfect storm is coming soon, but
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maybe not. it will be so gradual, markets will back their eyelids. there is this issue about asset prices, a really interesting one. no information, prices are not going up, except on the stock market. property prices are going up, everywhere else, no inflation. what does the fed do in a situation like that? central banks have been talking about the distributional effects of duty and how their policies are not set up to do that. we will be hearing about that —— of q is. it is the short-term interest rates that have put up the prices begin at everybody has or money and they are all on the stock market. partly, but there two views within the fed. no interest rates are here to state. one other question on regulation —— low interest rates. there is a lot of talk in the white house about getting regulation of banks. will the central bankers have anything to say about that? this meeting will be about fostering global economy. central bankers will
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reiterate the need for regulation to safeguard future growth. i think that will be the message. safeguard future growth. i think that will be the messagelj safeguard future growth. i think that will be the message. i like it on that camera four, it looks like janet is that at the desk with us! let's ta ke janet is that at the desk with us! let's take a look at some of the other stories. uber said it took bookings worth $8.7 million, up 7% on last year. the total number of bookings was up 150%. but it is still losing money, but that figure is falling every quarter. the results, after an unprecedented series of scandals that have engulfed the company in 2017. people searching for, quote, depression, and dougal, will soon be prompted to ta ke and dougal, will soon be prompted to take a questionnaire to assess if they may be suffering from the illness. the search giant has partnered with the us national lines on mental illness to roll out the project, although it is currently only for us users. the uk food
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industry has warmed but the post—brexit labour shortage could leave a third of businesses and viable. the food and drink federation said the sector faces a rapidly approaching workforce shortage and skills gap. nearly half of all of the businesses it survey said that eu nationals working in the uk were considering leaving. we're going to talk about that as well with our inside track get a little later, he will is suffering from little later, he will is suffering fro m exa ctly little later, he will is suffering from exactly that. stay tuned for a discussion about what that means for the labour force here discussion about what that means for the labourforce here in discussion about what that means for the labour force here in the discussion about what that means for the labourforce here in the uk after brexit. away from the uk, though, shares in a chinese hotel group plunged today after a disappointing result. tell us about the story? well, that's right, it is the story? well, that's right, it is the hong kong unit of a huge chinese development. it has fallen as much as 11% after reporting a first half loss of $30 million, although it has since recovered somewhat. it is down
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7.596 since recovered somewhat. it is down 7.5% right now. it blamed its losses on smaller gains in investment properties and the impact of exchange rates on the company sale ofa exchange rates on the company sale of a project in madrid. the sale of this project was called the wonderment or development, for 272 million euros, it losses skyrocketed more than 700% from one year ago. we know the chinese firm has been in the news quite a lot recently. it walked away from a planter by london's nine elm squarejust recently. —— from a plan to buy. it would buy $1 billion of assets for one. ‘s —— for wonda's projects. of course, the first half profits cannot possibly be helpful. bearing mind that the hang seng, when the stock trade was shut yesterday because of a hugely devastating typhoon. thanks very much. more on
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that a little later, but interesting times as far as the business is concerned. let's talk about shares. tokyo stocks are down again on the back of the strong yen. worries over president trump is my‘s remarks over nafta and mexico. it has been a weird week is for us markets are concerned. down weird week is for us markets are concerned. down on weird week is for us markets are concerned. down on monday, by tuesday, flat yesterday. we have had earnings this week, but there is more uncertainty. no sign that progress has been made any time $0011. progress has been made any time soon. president trump threatening to shut down the us government. we will talk more about that in a moment. also nafta, the north american free trade agreement. we will discuss that can get. i want to show you europe, it is a slightly different picture. although there was not much to get excited about from this speech from the of the european
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central bank. he was beating yesterday, and he is expected to speak at that conference as we have discussed. here in the uk, we get the second reading of the second—quarter gdp, the first one just a few weeks ago, up 0.3%. today's figure is seen as a more com plete today's figure is seen as a more complete data, so we may get a big update, but don't expect any big changes. that 3% figure came as a bit of a surprise because unemployment is still falling in the uk and yet it hasn't really changed much for the wide economyjust yet. more on all of that injustice item. michelle has her assessment of the day ahead on wall street. the world's top central bankers meet and we will get results from tiffany is. they will be following speeches from janet yellen as well as the side of the european central bank. they will be looking for any clues on monetary policy. meanwhile, there is plenty to worry the markets. trump's threat to shut down the government shook investors, this is
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the risk of america defaulting on its debts looms on the horizon. us treasury secretary steven mnuchin has said the government won't be able to pay all of its bills after september 29 and last the debt ceiling is raised. that is the limit on the amount the government can borrow. credit ratings agency fitch has warned that america's triple—a rating was at risk if the debt ceiling isn't raised in eight timely manner. joining us is chief market a nalyst manner. joining us is chief market analyst at cmc markets. this is extraordinary, give me my wall or i am going to close down the government. it seems to be upsetting the markets and it is making waves. are you worried? i think he was talking to his support base, but with president trump you have to understand that what you see is what you get. he came to power on the basis that he wanted to build this war, however ridiculous it may sound, and we have been here before with the us and the debt ceiling. we we re with the us and the debt ceiling. we
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were here in 2011 and 2013. the question is, how far is president trump going to push this? the republicans have control of both houses. this is manageable, unlike 2011 and 2013 when president 0bama was president. but president trump is under pressure at the moment from all sides, not only democrats, but republicans. there is a concern. he did it may suggest that maybe the what the us government needs is a government shutdown. maybe he would do it. what does a shutdown look like? what would it mean? do it. what does a shutdown look like? what would it mean7m basically means that all government—sponsored activities get suspended. basically, government staff don't get paid. there is some way around it. they can potentially extend or defer certain operations. but ultimately it's not a good look for the world's number one economy, if you're not playing your stuff or you are laying off. on a temporary basis. -- if you are not paying your staff. wpp, the big advertising
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company, saying it is worried about, basically consumer spending or consumer basically consumer spending or consumer appetite for advertising seems to have dampened down. figures we have just had out this seems to have dampened down. figures we havejust had out this morning from the uk about dixons cough on, it has a warning about profits. —— dixons cough on. you can read more on the bbc website. these things drawing together a bit about consumer confidence, consumer spending. they do a little bit. with dixons, consumers are holding off from upgrading their new friends. when you look at the prices of these new phones that are coming out this year, it's a lot of money —— upgrading their phones. the shape of the advertising market is changing as well. part of that is the way we consume advertising, google, pay per click, amazon, facebook, the way that advertising is pushed and we consume it is different. 0n television and streaming, nobody watches tv now with outbreaks. ——
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with outbreaks. advertisers are having to adapt to a changing digital, you know, road map if you like. there is a concern about a wage squeeze, like. there is a concern about a wage squeeze, consumer squeeze. 0bviously, wpp and dixons‘ resolve this morning could be reflective of the timing and part of consumers, not just here the timing and part of consumers, notjust here in the uk but globally. michael, stick around, because we will be talking to you later about the newspapers and what is going on in the world of print media. thank you. still to come... it maybe a little cheesy... we've said this one already! laughter it's worth saying again, because the interview will be great. we're going to get the inside track on the growing demand for british cheese, especially in the united states, when it usually comes out of a tube. there is nothing worse than repeating jokes! you with business live from bbc news. we're being told off for not writing
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our own jokes! we're being told off for not writing our ownjokes! don't we're being told off for not writing our own jokes! don't you worry, we've got some of the bike up our sleeves. the number of cars built in the uk last month rose by 80%, that according to the society of motor manufacturers and traders. but the number of cars made in the uk in the last seven months of the year fell 16% to about 1 last seven months of the year fell 16% to about! million. —— last seven months of the year fell 16% to about! million. “1.6%. sean, the numbers seem to be better this month, why have we got this rise? yellow morning, both. the reason they have gone up injuly is a few reasons. one is that we have got those new registrations coming in in september. that generally means there is a bit of a bump this time of year anyway. compared to last year, you have got to be careful comparing july and august because you get various factory shutdowns and there has been more investment injuly shutdowns and there has been more investment in july this shutdowns and there has been more investment injuly this year than
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last making things look rosier. the general trend for the year and expectations from the industry is that in the uk we will be making fewer ca rs that in the uk we will be making fewer cars and selling a lot fewer as well, which is really crucial. the selling issue is important, you touched on the exports, for out of five cars made on the uk sold overseas. that is where the demand has been coming from, traditionally. it has. the demand in the uk, i like a good pun, it has been fuelled by the car finance loan industry. the bank of england said 85% of all new car purchases in the uk are driven by car finance deals. that was a pun ididn't mean, by car finance deals. that was a pun i didn't mean, by the way! that is a bit of a concern for them, but not for the industry. they say it is regulated and they are happy with it as it stands, but it will be won to watch as we see any potential interest rate rises in the future, loa ns interest rate rises in the future, loans become more expensive, what will happen to car sales in the uk? sean, before you go, favourite cheese? i'm a simple cheddar man. stay watching, we will talk about that next. more fallout from the story about
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carphone warehouse, who have had a profit warning. they are also saying that the mobile handset market may not recover this year. the chief executive said: we have seen an increased number people hold onto their phones for longer. while it is too early to say whether the trend will be reversed, we believe it is prudent to plan on the basis that overall demand will not correct itself. you're watching business life. 0ur top story: those central bankers who are meeting in the united states. they will talk about all sorts of things — inflation, interest rates. all the challenges for the global
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economy. the big question is, will it make any difference or is itjust a jolly meeting? lets see how the markets have started in europe. looking reasonably healthy, despite that fall at dixons. the pound against the dollar at £1.28. when should you go on a cheese diet? when should you go on a cheese diet? when you need to cheddar a few pounds! cheese sales are up. britain is moving ahead as a cheese exporting nation. we sold $687.2 million worth of the stuff last year. we produce a35,000 tonnes of cheese in the last year. the
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majority of that was cheddar, by far the most popular british export, particularly to the united states. and not all cheddar is the same. most of this is a standard variety, though there are some producers who concentrate on traditional farmhouse cheddar. the king of those cheeses is cave— mature cheddar. who knew there were so many fascinating facts about cheese? mike pulling joins us. it is specialist cheese, isn't it? yes, farmhouse cheddar. a cave is an ideal situation. you have 100% humidity, 1a celsius all year round. what does that do to the taste?
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cheese always picks up the flavour of what ever is next to it, like an onion in the fridge. if we were to doa onion in the fridge. if we were to do a blind tasting, could you tell your cheese? in the old days, the graders could tell you which farm it came from. it is a really big business, and we were talking about sales to the united states being particularly strong — who is your competition? when i think of cheese in the united states, either it comes in the united states, either it comes in a rectangle orfrom a tube. the french, they do a good job in america as well. the americans like english cheese, but they also like french cheese. do you have to pay ta riffs french cheese. do you have to pay tariffs on your cheese? yes, it is
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something about £1100 at —— 1100 pounds per tonne. we have seen the dollar strengthening in the last 12 months, and that has helped us a lot. so that offsets any problems. if people particularly wa nted that offsets any problems. if people particularly wanted english cheese, they would buy it. do we need a free—trade deal with the united states, as far as you are concerned? for us, it has worked as it is. at the moment, it's fine. when we talk about that fall in the valley of the pound, that makes it cheaper for you both but commodity prices are going up, milk being no exception. does that mean a big increase in your?
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up, milk being no exception. does that mean a big increase in your7m july last year, it was around 20p, and it is 30p this year. so that is the rise in the milk price, which obviously for us, we have to get that out of the market. another story that has come out today is a survey by the food and drink industry about the supply chain, saying there are something that 30% saying there are something that 30% saying that if they lose eu labour in this country, they will go under and be unviable. is that true for you? our eu labour is important to us. would you go wonder? i hope not! unviable was the word they used. we employ about 90 people from around the world, mainly from poland. fantastic people to work with. we are having a problem getting workers into the factory. are they leaving? yes, some of them are giving back to
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poland. and how easy is it to get people to replace them? very difficult. we put adverts in this week. the basic wage will have to rise to get these people. you are putting out adverts but not getting a response? we get a response, but they are the kind of people who don't want to work in a cheese factory. but you find eu labour. i do paying them enough? in the long term, we will have to pay more. which will push up prices are? yes, then we have to get that out of the market. we have to go to a broad than the uk to get the price. thank you for coming in. we will have a look through what is in the business pages in a minute, but here is a reminder of how to stay across all the business news at the bbc. we wa nt
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we want to hear from you. get involved on the bbc business like web page. —— business live. michael is back with us to talk about what is happening in the newspapers. this is an interesting story in the ft this morning — more debate and indecision about heathrow and whether richard get that extra runway. the leader of the 0pposition, jeremy corbyn, expected to vote against the expansion of heathrow. why? pollution, that is the bottom line. that was the
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concern i had when they voted it through — how do you get under the ca re through — how do you get under the care quality regulations? the m25 is a car park already, let's face it. what is the difference between west london and south london?m what is the difference between west london and south london? it is the density, given the concerns that there are about clean air in the london area, do you want to argue that? we do need more capacity in the south—east, but i don't think it needs to be yet heathrow. there are good transport links to gatwick. ultimately, a decision has to be made and stuck to. we have been having this debate for ten years.|j wonder if it willjust go won four more yea rs now. wonder if it willjust go won four more years now. i think it will. it seems that the politicians are unable to make a decision unless it isa unable to make a decision unless it is a significant project like hs2. all the while, our foreign
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is a significant project like hs2. all the while, ourforeign rivals, amsterdam, dubai, are stealing a lead on heathrow because of this indecision. we need it more than ever. specifically now, with brexit, we need to attract that inward investment. this sort of prevarication basically sends a terrible message to the rest of the world that our politicians can't agree on anything. thank you very much indeed. and thanks for your messages this morning. and questions about the powerball, the $750 million. caleb says: ‘s investment and a holiday. is we will see you soon. goodbye. a very good morning to you. i'm sure
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many of you are trying to plan your bank holiday weekend, and the forecast looks mixed — a mixture of sunshine and showers, with the brighter and drier weather in the south, thanks to high pressure building from the south. we have low— pressure building from the south. we have low—pressure lingering across the north and west, bringing with it showers and longer spells of rain, mainly across northern ireland and scotland. a fresh start to the morning. showers across northern ireland gradually tracking their way to the east. brisk winds. further south, more chance of seeing the brighter and drier conditions across the south—east. pleasant in the sunshine this afternoon. further west, a bit more clout, but still some sunny spells coming through. a mixture of sunshine and isolated showers across wales and the midlands. in northern england, is again, just the odd shower but good sunny spells developing. eastern parts of scotland have drier and
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brighter conditions. further west, showers and persistent rain later. northern ireland, sunshine is harder to find. temperatures around 17 celsius in belfast. through the night, the shower was will move to the east across the north. further south, a quiet night. lighter winds and starry skies. perfect conditions for looking at the sky. temperatures of 11-1adc. for looking at the sky. temperatures of 11—1adc. tomorrow, we do it all again. the best of the dry and brighter weather to the south — further north, showers across northern ireland and scotland. rather blustery there as well, temperatures around 15 celsius. at the weekend, low—pressure nearby, feeding in some weather systems, bringing showers or longer spells of rain. the best of the dry and bright weather is further south on
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saturday, further north, sunny spells and the risk of showers. temperatures up to 2a celsius in london. bank holiday monday, as it stands, will see some rain. the dry and bright weather will be across the south—east. it will be windy. hello, it's thursday, it's 9am, i'mjoanna gosling, welcome to the programme. more than 500,000 teenagers are getting their gcse results this morning, with pupils in english schools finding out how they did in the new, and harder, maths and english exams. iam here i am here at the outward academy city school in sheffield, where we know that handful of students have managed to reach the top grade of nine. there is some confusion about the new gcse system, but also some excitement. we'll be speaking to students and teachers and looking at the best options for sixth form.
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also... a teenager who has lived in the uk most of her life with her british mother said that her life has been turned upside down by brexit.
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