tv BBC Business Live BBC News August 29, 2017 8:30am-9:01am BST
hello, welcome to business life from the bbc. new figures show the most qualified eu workers are turning their backs on the uk. live from london it is oui’ on the uk. live from london it is our top story. as the eu's chief negotiator talks of slow progress in the brexit negotiations, uk manufacturers are warning of a looming skills shortage and recruitment crisis if they cannot hire eu workers after brexit. also, keeping the lights on. a giant merger in china creates the world's largest power supply are worth $280 billion. and with trump, north korea, gold and oil on the minds of investors, there is a lot to think
about. we will explain what is happening and why. also, as more and more cars turn green, we will get the inside tracks on the company who wa nts the inside tracks on the company who wants companies to ditch fossil fuel. as pet ownership is on the rise, we wants to know what is the most extravagant thing you have bought for your pet. use the hash tag business live. good morning. we are going to start with the eu because britain needs to start negotiating seriously. that is the warning from michel barnier, as talks resume in brussels. he said he is frustrated that the uk government's ambiguity and the failure to tackle potential financial liabilities. this on the same day a major body representing
uk manufacturers of one britain is facing a brain drain. they warned skilled workers from across europe are already turning their backs on the uk. a survey released this morning found a quarter of manufacturers have seen a decrease in applications from eu nationals. at the same time, 16% have seen a number of eu nationals leaving their business going up. kpmg released a report and predicts 1 business going up. kpmg released a report and predicts1 million eu nationals that currently work here in the uk are now considering leaving. the vast majority of eu nationals in the country at the moment to consider the uk as very or quite an attractive place to work. the uk exports $336 billion worth of goods and services to the eu. the eu sends back 376 billion. in economic terms at least, it is going to be
beneficial for both sides to get the issue of workers‘ rights resolved sooner, rather than later. let‘s talk to the head of education and skills policy at eef. thanks for being on the programme. explain which types of manufacturers are feeling this pain most of the moment 7596 feeling this pain most of the moment 75% of manufacturers say they are struggling to recruit. there is huge concerned this alarming figure will only increase as eu nationals leave the uk and manufacturing businesses, as we saw with last week‘s migration figures. it is the unknown of what a post—brexit migration system will look like. there is a big question to what extent manufacturers will be able to recruit eu nationals after brexit. what are you looking for in terms of help for manufacturers? it
isa terms of help for manufacturers? it is a long—winded process and one in which manufacturers, employers may not have much visibility about what the outcome will be? that is what they want to see, visibility and certainty, to know they can recruit those people now and in the future. the average manufacturer has around 1196 the average manufacturer has around 11% eu nationals within their workforce and they work across the manufacturing company from machine operatives to skilled engineers and professional engineers. this is something that —— perception eu nationals take low skilled roles, they take the high skills and mid skilled roles which are more difficult for employers to recruit four. in terms of how manufacturers are handling the situation, what are they doing to hold onto those skilled workers who are working for them at the moment? they are trying to give them as much certainty as
they can but it depends on the government and the brexit negotiations. some have tried to offer more financial support. so if they are applying for indefinite leave to remain. they are trying to future proof their workforce so we see increased investment in apprenticeships, more graduate programmes and bob skilling and rhys killing their present staff. those solutions are long—term and at in the short term employers are concerned where they will fulfil those job roles. thank you for your time from eef. there is a debate on this issue, more details on our website. let‘s bring you up today with the headlines: many refineries have shot in the gulf of mexico. it is the larger storm to hit the united states in more than a decade. the closures are expected to cause a temporary spike in us gas prices.
analysts say the impact of the storm will pass $40 billion. it says direct losses could reach $20 billion. there is a joint—venture to build electric vehicles in china. it aims to help the car—makers to expose themselves to the clean air market. they will be owned 25% each by nissan and renault. amazon took over whole foods yesterday. it wasted no time in cutting costs. because on popular items like avocados and apples by a third. it has bid to shake off its reputation high prices. it didn‘t cut things like bread and milk, but avocados and apples. avocados are expensive. lots of
stories on our business live page. uk companies mutts published pay ratios under new law. they will have to reveal how much more of their chief executives are paid compared with the average employee. this is pa rt with the average employee. this is part of government reform in the uk. the business secretary is saying the plans will make a difference but unions attack them as watered down. however, these ratios will have to be revealed under the new law. let‘s turn our attention to china because the country is set to create the largest power company. the deal that will create the world‘s power utility worth $280 billion, let‘s get more from christine in our bureau in asia. tell us more. the new entity is going to be called china energy investors news corp. this is going to be the world‘s bigas power
company by to be the world‘s bigas power com pa ny by sta rc to be the world‘s bigas power company by starc capacity. they have assets of $280 billion. there are two reasons, china wants to streamline its state owned enterprises sector and cut overca pacity enterprises sector and cut overcapacity in the country. and china is moving towards clean energy and it needs companies that can make the transition smoothly. these are the transition smoothly. these are the country‘s biggest companies. it is the top coalminer. if you put the two together, you get a giant which is able to stabilise prices and costs with access to coal and coal transport networks. it is also able to scale up renewables over time. it will account for i3% of china‘s power generating and coal mining capacity, both of them. 23% of the power will be renewables. there is
still a few state—owned power companies in china, so i do expect more to come in this space. we will keep an eye on that one. confirmation of what the numbers are doing. tokyo stocks fell tuesday after north korea launched a missile over japan that sent regional tensions soaring, with prime minister shinzo abe slamming it as an "unprecedented, serious and grave threat". donald trump has also vowed to ramp—up pressure on north korea after that missile test. that‘s sent gold to a new nine month high. but oil went lower last night after hurricane harvey was downgraded to a tropical storm. it‘s left destruction in its wake, but — and this is purely in a financial sense — not as severe as they‘d feared. more on that in a moment, but first michelle has the rest of the details about the day ahead on wall street. president trump is visiting texas.
he said he would try to fund what will be an expensive recovery from tropicals to all harvey. it is not clear how the hurricane relief will impact budget talks in washington. investors are keeping an eye on the energy sector. houston and the texas coast is one of the leading centres for the energy even justly. many of crude oil production and refineries have shut down because of the storm and it‘s not clear when they will be open. the storm is putting pressure on the dollar which felt more than two and a half year low against the euro on monday. 0n two and a half year low against the euro on monday. on an unrelated note, apple store is one to watch after they scheduled a product
launch for september the 12th which is thought to include the new iphone eight. joining us is alpesh patel, chief executive of praefinium partners. michelle talking about stuff to watch in the us, wejust looked up the wall, all red. no surprise with the wall, all red. no surprise with the situation with north korea?m the situation with north korea?m the short term you would have thought the market would have come off more. you have the hurricane, you have the missile launch. i was giving a two—hour market broadcast and alli giving a two—hour market broadcast and all i could see was an upward trend. it is your fault! it is my fault. i said everything would go up, so obviously it has gone down today! the reports we are seeing from the big banks, all the analysts in terms of equities. they appreciate we are getting into an overvaluation state, but despite what you are seeing out of the us
politically and economically. we are seeing these trends, saying to people not a problem getting into equities and we‘re not even seen a fall of in the yen despite the missile launch. it was rising. it is a safe haven. you would think if there are missiles being shot at thy country, people would want to get out of it. you might think, don‘t wa nt to out of it. you might think, don‘t want to go to the states, but you have got the euro at least. i wanted to talk about... gold and oil are doing opposite things. you would have expected oil to shoot up given what is happening in texas. the issueisit what is happening in texas. the issue is it isn‘t as bad as the market had feared? you would expect
some fundamental capacity constraint and the price would go up. the market is doing the opposite of what is rational. what we are doing at the moment, we are following momentum, not looking at fundamentals all rationality. when you say we? the fund and advice to our followers, don‘t try and rationalise this because you will not make sense of it as things stand at the moment. all right. not particularly a good thing to say on the news channel. that is really, really helpful. he is coming back with thoughts on pets. no promises any of it will make sense. we will give him ten minutes to get his head around pet purchases. still to come... powering industry. could heavy machinery and global travel soon be powered by electicity? as more and more vehicles turn green, we meet the firm looking at new ways to keep buses,
ferries, trucks and lorries moving — without using fossil fuels. you‘re with business live from bbc news. levels of uninsured driving may be rising for the first time in more than a decade according to new research. bbc reporter matt preceyjoins us now from the bbc norwich newsroom. good morning. just talk us through these things. what do they show us? they come from the motor insurers bureau, an industry body which compensates victims of an insured and hit—and—run drivers. they work to reduce the level of uninsured driving in the uk. this year they expect to pay out £256 million and in the past 12 months they‘ve seen a 10% increase in the cases they handle. that is the first time it has increased since 2004. they
handle 12,000 cases every year. the pool of money they used to compensate is roughly £15 on every premium. what do we expect from this data? it suggests the numbers are increasing and they are investigating the reason for the rise. but the mib point to other factors, the rise in the number of vehicles on the road, the driver licences being issued. they are looking into claims management companies but they say levels of uninsured driving remains unacceptably high despite effectively halving over the last ten years. what is being done to tackle it? the police are routinely
seizing vehicles using a number plate recognition system. these cameras scan plate recognition system. these cameras scan hundreds of number plates every hour. they are on a database operated plates every hour. they are on a data base operated by plates every hour. they are on a database operated by the mib. if a car comes up as database operated by the mib. if a car comes up as showing that it is being driven with no insurance, the police. it, double—check the status, and sees the vehicle —— the police. —— the police will halt the vehicle. if they don‘t do this then the vehicle is auctioned or crushed. 40% of vehicles seized last year ended up of vehicles seized last year ended up in the crusher. that is a thousand cars a week. you‘re watching business live — our top story — manufacturers have warned of a recruitment crunch if they are unable to keep hiring eu workers after brexit.
trade body the eef says the government must clarify the rights of eu workers "as a matter of urgency". a quick look at how markets are faring... all the main markets in europe are down 1%. we have safe havens like gold doing well. that is them. we‘ve talked a lot about the growing market for electric vehicles — and whether they can help cut greenhouse gas emissions around the world. but what about other modes of transport — that, on the whole, rely on fossilfuels? the us environmental protection agency found that heavy—duty vehicles like trucks, rail, ferries, boats and aircraft make up 40% of greenhouse emissions from the transportation sector. 0ne company that‘s trying to revolutionize the heavy transport sector is finnish firm visedo. the company said that its electric
propulsion technology enables better efficiency with less fuel consumption, less noise and cleaner air — and results in 50% less emissions in heavy—duty vehicles. the finnish company was founded by kimmo rauma, and his company has delivered asia‘s first hybrid ferry, finland‘s first all electric ferry, and other electric bus fleets. kimmo rauma is with us now... let‘s talk about how it works. we are so used to talking about electric cars. this is about scaling up electric cars. this is about scaling up to industrial applications. buses, i see as a logical. can you really para a ferry with electricity? it is quite
straightforward. 90% of the time, it is standing still, a car. when you think about fairies, they are working every day. the total life of a car is 6000 hours, this kind of heavy duty can do it in a year. when do you charge it? i can understand you do it overnight, but ferries will travel overnight. this is what they think about the cars, the battery is not ready. it is operating 17 hours without any charging. the first full electric fairy in taiwan, it can charge when
people are coming in. so the six minutes is enough for the charging. six minutes, you can charge the ferry. you have a little battery thatis ferry. you have a little battery that is bigger than needed, so during night time you can charge it a little more. it is quite easy to understand it does not change this anywhere else. it cleans the pollution. you see yourself as a disrupter in this industry, an industry you believe does not want to change. you have very much focused on asia where there is a cultural difference. they are open to what you‘re offering them and willing to invest but not so in europe? yes. if you think about the truck business, the whole business
is based on the maintenance fee. the truck race has been the same for the last decade, exactly the same. at the same time, the maintenance cost is 12 times higher. when we electrify that one or make it a hybrid it destroys the maintenance pa rt hybrid it destroys the maintenance part of the industry. of course they do not want to change. this combination does not exist in asia. the biggest ones are not from asia, when they want to take over the world and become the big ones they will do it in full electric in a minute. we talked earlier about heavy plant machinery, rock crushers, jcbs. given those refuseniks, how do you get them to
embrace them? actually, i need to find the medium players who want to ta ke find the medium players who want to take on the bigger ones and show the world this is doable. when we got the first ones to say, they are earning much more money than they used to but everyone loves it because there is no air—pollution. it is gone now. it is a win— win situation. it is fascinating to hear what you have to say. i want that battery on my smartphone! 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 with all the breaking news. we will keep you up—to—date with the latest details. we want to hear from you as well. get involved on the web page. you can find us on facebook. you have not held back with the tweets today. let‘s bring back a reporter. pets on the rise. a p pa re ntly reporter. pets on the rise. apparently rich people like animals more than people who cannot afford. here is an opportunity for viewers
to get rich. i looked up high—end fashion websites and none of those websites had anything about pets. they had menswear, childrenswear, womenswear, yet the sheer prices of all those companies are at an all—time high. they are missing a trick. i am going to buy shares in those three. i think they will start doing a pet range. by the way the champagne for pets is called pawsecco. i think the rspca might come knocking. 0ne pawsecco. i think the rspca might come knocking. one person said, she bought a bag so she could be slung over my shoulder. she loved it. gucci, that is the way to go. you haven‘t got any pets.
gucci, that is the way to go. you haven't got any pets. i'm a vegetarian that doesn‘t like animals. this person says, £48,000 bmw estate for the pet. we have someone with a stroller that holds five dogs. an elevator with voice activated controls and mood lighting. who are you? thanks for coming in. appreciated. good morning. yesterday we got to 28
degrees across the south—east of england. today not as hot, we‘ve got a weather front introducing cooler conditions. this is the area of cloud. for many of us it will feel fresher. there will be a mixture of sunshine and showers. most of it towards scotland and northern ireland. a very weak cold front. it will introduce a bit of cloud. it will introduce a bit of cloud. it will bring skies south east road. temperatures getting up into the mid—20s. some good sunny spells across england and wales. up into northern england as well. those are down by a few degrees. for scotland and northern ireland, a mixture of
sunny spells and showers. some of those could be on the heavy side. temperatures about 17 degrees celsius. that is going to last —— not going to last. it will introduce that cooler, fresher air. quite a chilly night. we‘ve got some weather systems on wednesday. particularly to the south—east. elsewhere, plenty of dry weather. staying cloudy across the midlands and southern
areas. 16 and 17. for thursday and friday, a mixture of sunny spells and showers. going into the weekend things look largely fine unsettled. hello it‘s tuesday, it‘s 9.00, i‘m victoria derbyshire, welcome to the programme. our top story today — north korea has fired a ballistic missile across northern japan, sparking an air raid warning before the missile fell into the sea. sirens there‘s been international outrage — we‘ll bring you the details. also this morning — "catastrophic" flooding in the us state of texas is expected to worsen in coming days as waters rise following a storm of historic proportions. we have a two—storey home and on the first floor it‘s up to here and all the furniture