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tv   BBC Business Live  BBC News  September 1, 2017 8:30am-9:01am BST

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this is business live from bbc news with susannah streeter and rachael horne. the uk must not allow itself to be blackmailed over its brexit divorce bill. those are the words of britain's international trade minister. but is he right or should the uk pay up? live from london, that's our top story on friday the first of september. one of the uk's top politicians says the eu should get on with negotiating a post—brexit trade arrangement. but they're insisting the divorce bill must be settled first. we're going to discuss who the likely winner is from this mexican standoff. also in the programme: samsung secures self—driving car permit in california. are tech firms about to drive traditional auto makers off the road? and this is the latest from the
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financial markets. stocks are on the up. and we'll be looking at what has been a busy week of economic stories — india has had a surprising slowdown in growth, and the ride sharing app uber gets a new boss. and after two flights were held on the tarmac at ottawa for hours in conditions passengers called deplorable, leading to an investigation, we want to hear your worst travel stories. let us know, just use the hashtag #bbcbizlive. hello and welcome to business live. the uk's international trade secretary liam fox says businesses are "getting impatient" about the progress of brexit negotiations but the country must not allow itself to be "blackmailed" by the eu over its so called divorce bill. those comments come less than 12 hours after the eu's chief negotiator said there had been no "decisive progress" during this brexit week's talks. as well as eu's citizens‘ rights and the irish border,
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the biggest sticking point is the uk's settlement bill. although no figures have been officially cited, the european commission president has mentioned a figure of over $70bn in the past. the is no official formula for that figure. but eu officials believe the uk's $11 billion a year uk net budget contribution, that's what we pay minus what we get back, must continue until 2020. uk negotiators though are reported to be disputing the legality of this claim. the uk had hoped to begin talks in october on a future trade agreement, but the eu's chief negotiator says progress is too slow on other issues and there is now "little chance of that". that hasn't stopped the uk from discussing trade deals elsewhere. later today the uk's brexit secretary david davis will give a speech at the us chambers of commerce in washington dc. and as we speak the uk's prime minister is on her way back from a trade trip to japan,
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a country whose companies employ close to 160,000 people in the uk. now, liam fox, the british secretary of state for international development was also on that trip — here's what he told the bbc a few hours a few hours ago. it's very clear that businesses not just in europe but investors in places like here injapan are getting impatient, and want to see what that final shape of that arrangement is going to be. it's very clear that businesses not just in europe but investors in places like here injapan are getting impatient, they want to know that there'll continue to be an open and liberal trading environment in europe, and there's a worry that if it's not the sort of agreement that britain wants, you could end up with impediments to trade and investment across europe that don't exist today. that was liam fox. we arejoined now by: cornelia meyer — international economist. you have done international trade deals for the us and corporate. what isa
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deals for the us and corporate. what is a difficult about trade deals, and what you think the uk government should be focusing on our? the one thing that is difficult about trade deals is it is boring and tedious and all about the detail. what the us/ uk government should be focusing on is consolidating its going in position, because we are really all over the place, soft brexit, hard brexit, read, blue and whites brexit. michel barnier needs the specifics. if you do negotiations, u nless specifics. if you do negotiations, unless you have a really good going imposition, it is very hard to get toa imposition, it is very hard to get to a compromise somewhere. but these are not traditional negotiations, because you have 27 member states and although these need to be taken into account, and it seems as though the eu is really sticking to its guns and saying, we are not moving, it is up to the uk to move a little bit more, because it is difficult
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for the eu to move, isn't it? mr barnier has been given his instructions, and he has 27 bosses, actually 28 because the commission is another, so he can'tjust go back and say let's go be lenient, he has to stick to his instructions. it is easierfor the uk to stick to his instructions. it is easier for the uk to say let's be flexible and innovative. mr davies only has to go to his boss, mrs may, he doesn't have to go to 28 people, so he doesn't have to go to 28 people, so in that sense, yes there is a process , so in that sense, yes there is a process, and because it is so complex, the eu is so big, they need to be quite rigid and sticking to their instructions. until the official deal is done with the eu, the uk cannot do any official trade
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deals with anyone else, but we know the officials are injapan,. what companies countries do you think that we should focus on? we had summary on that we should focus on? we had summary on earlier saying that we should focus on people have little access like india, we already export access like india, we already export a lot to the us. the one thing i would say there, though, you heard it from prime minister abe, he wants clarity on the deal, and every consequent deal will evolve from the shape that the uk/ eu deal house, because especially for investment, it is very important if you want to export. our biggest market is the eu. we want to know whether you can produce in here, and with these exports to the eu or not. i'm sure we will talk about this again very soon, thank you. let's take a look at some of the other stories making the news. the costs of storm harvey in texas are mounting —
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with some analysts now estimating losses could approach $100bn. the storm has killed at least 33 people and destroyed thousands of homes. many firms in the region — which is home to the oil and gas industry — don't know when they will resume normal operations. sales of vacuum cleaners that produce more noise and heat than suction are banned under eu rules from today. the ban affects machines using more than 900 watts and emitting more than 80 decibels. some campaigners say homes now won't be properly cleaned — but energy experts say the best low—powered vacuum cleaners do just as well as high—wattage machines. the mining giant rio tinto has completed the sale of most of its australian coal assets to the china—based firm yancoal. the world's second biggest miner raised $2.5bn from the sale — and will earn about $250m in royalty payments. the world's largest smartphone maker has received a permit to start testing autonomous cars in california.
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sarah toms is in our asia business hub with the details. it has just got the green light. samsung makes arriving from tvs, fans, washing machines, and now it is trying its hand at self driving cars. the electronics giant is joining a long list of companies doing that, including car manufacturers such as bmw and general motors, but it is also keeping up with tech companies like its arch rival apple, and alphabet. this comes several months after it bought a car parts supply of $8 billion, and samsung has already got the go—ahead to test self driving ca i’s the go—ahead to test self driving cars in its own country, south korea. and remember, samsung is focusing on self driving car softwa re focusing on self driving car software rather than creating an entire vehicle. and with the ok to
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test on public roads in california, it looks like samsung's positioning itself to offer its technology to other companies, including car manufacturers. sarah, many thanks for that. self drive cars, the new frontierfor samsung, for that. self drive cars, the new frontier for samsung, lots of other text runs as well. let's take a look at the financial markets. shares in tokyo are up — following another rise on wall street as worries over both north korea and storm harvey seem to have eased slightly. a falling yen has boosted the share prices of japanese exporters — it means their goods are cheaper for foreign buyers. let's take a look at what's happening in europe since trading began this morning investors will be keeping their eye on a key a key us jobs figure out later michelle fleurey has the details about what's ahead on wall street today. a second round of trade talks to renegotiate the north american free trade agreement, or nafta, begins in
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mexico city this friday. early in the week, us president donald trump repeated his threat to rip up the deal if he doesn't get his way. negotiators for the us, mexico and canada are pushing to modernise the 23—year—old agreement ahead of mexico's presidential election next year. and the us labor department releases its monthly employment report. it is likely to show that american employers added 180,000 jobs in august. that follows a better—than—expected increase of 2009000 injuly. better—than—expected increase of 2009000 in july. no better—than—expected increase of 2009000 injuly. no changes expected in the unemployment rate, with wages expected to be the real focus for investors, given the lack of wage inflation in the recovery. monthly car sales figures are due out, and even before hurricane harvey, which many predict will dent sales, numbers were expected to be disappointing. that was michelle fleu ry disappointing. that was michelle fleury and wall street for us.
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joining us is james bevan, chief investment officer at cc la in vessel and management. figures suggesting losses could approach $100 billion after the effects of hurricane harvey. everybody wants to cap the immediate cost, but in practice, economies have injections of cash because of the rebuilding, so of cash because of the rebuilding, so in18 of cash because of the rebuilding, so in 18 months‘ time were we would expect the economy to be in a better place than it is today because of this. did we see that after hurricane katrina 7 this. did we see that after hurricane katrina? yes, because new housing has to be built, big infrastructure programmes, consumer confidence rises quite quickly. so good for businesses, but from many people it is a very difficult situation. yes, and there is a big difference between a broader economy
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effect on the local effect. if you area effect on the local effect. if you are a business that loses out locally, doesn‘t mean that another business can‘t take up the slack and therefore continue to produce overall levels consistent for demand within the economy. we're talking focusing on the us floods, but right across india, bangladesh, nepal, devastating floods. more than a thousand people killed in them. what impact is that having in the short—term, and would you see those same types of reconstruction boosts to those economies going forward? there are couple of issues that are important. in terms of the coverage it is clear that the hindustan times, for example, has much more coverage of india, whereas in the west we have for five times as much coverage of the us hurricanes than we do the asian ones, so there is a big geographical challenge in terms of what we take seriously and why. in terms of the economy, india had already cut its interest rate in august, it recognises the economy is slowing. i think it is important to
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see how much infrastructure takes place in india‘s cities. that is why the floods have been particularly difficult. some of the focus has been on the gasoline industry, which is why prices have shot up. what using the prospects are going forward ? using the prospects are going forward? the storm has abated but still many refineries are right of action. a 1096 shift in the oil prices is the same roughly as a $10 billion tax hike on the consumer, so i think we are likely to seize on government action in terms of spending. this comes at a good time for spending. this comes at a good time foertrump in that spending. this comes at a good time for mr trump in that sense, because there is a clear expectation that he will find it very difficult to get his fiscal reforms through process. it is really important that the us is able to continue in business, and therefore
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the debt ceiling arrangements also have to be addressed within the next six weeks. so in a sense although this is a local disaster, it is not good news, but this might be good news for the us economy. over here we are already beginning to see signs that there will be rising oil prices and petrol prices as well. james bevan, thank you very much. still to come: we‘ll be taking a look at what‘s been a busy week of economic stories. india has had a surprising slowdown in growth, and the ride sharing app uber gets a new boss. you‘re with business live from bbc news. the hop harvest is getting under way this week and it‘s set to be a good year for british farmers. but what will it mean for britain‘s booming beer industry? ben thompson‘s on a hop farm in the foothills of the malverns this morning. welcome to a glorious morning down here in worcestershire. we are with the hop harvest in what‘s going to bea bumperyear the hop harvest in what‘s going to be a bumper year for the crop. the hop harvest in what‘s going to be a bumper yearfor the crop. the farmers are out collecting the crop at this point in the morning. it will be sold around the world. used
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in the uk but also sold to asia and the united states and to europe. good morning. a good harvest this year. it's looking like it's going to bea year. it's looking like it's going to be a beautiful harvest. the hops are you are coming in well. beautiful green and weighing heavy at the moment. fingers crossed. what are we looking at here, it‘s a huge plant but it‘s just this little bit that you need. show us here. it's just the flower. we have got this plant that grows to about six metres tall. we have a lot of leaf and a lot of stem, we call that the bine, all the brewer wants is the flower and it‘s the yellow in the base of the flower which is the gland and in there we have the hop oils and aromas. in the case of the goldings hop we have floral, honey, spicy flavour notes, it‘s those flavours that they want coming through into the beer. that‘s what the hop harvest is all about, getting tiny
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flowers off the plant and baled, dried, ready to go to the brewer. this love for craft beer must be good news for people like you? the craft brewing industry is brilliant news for hop growers because the utilisation, we call it the utilisation, we call it the utilisation rate of hops, is much higher. craft beer is about flavour, it‘s about provenance and quality. in that drink you have a high number of hops which is brilliant news for farmers. thank you very much. we are going to stay here, they‘ve promised mea going to stay here, they‘ve promised me a little bit of beer later! from me, back to you. ben gets all the bestjobs. a tasting session, it is friday afternoon. some suggesting this is a pr
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exercise. you can get details on our website. you‘re watching business business live. our top story, the uk‘s international trade secretary is accusing the european union of trying to blackmail the uk into agreeing a brexit divorce bill. liam fox says it‘s wrong of brussels to insist that the issue needs resolving before trade talks can begin. let‘s look at the financial markets. this is the situation since the markets opened. the ftse 100 this is the situation since the markets opened. the ftse100 and the dax and the cac on the up. let‘s get the inside track on this week‘s big economics stories with our correspondent. the indian economy has been suffering a slow down. thank you for
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coming into the studio. tell us more, has this thing about withdrawing high denomination cash notes out of the economy. the idea was to make people pay tax. they we re was to make people pay tax. they were hiding this money, bank notes under the bed and the tax authorities didn‘t know about it. the prime minister and the minister at the time thought this is to get people to pay tax. it stripped money out of april economy which is based on cash. banking system, credit cards, internet shopping are less sophisticated and widespread in india than other countries. people are paid in cash and buy in cash. thoughing the notes out of the economy was a hit. then in the last couple of months we seen the government introduce a new sales tax, companies were confused about how it would work, those two effects seem how it would work, those two effects seem to have slowed the economy marketly. it. was expected to be
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over 6%. marketly. it. was expected to be over 696. let's talk about uber, a change of leadership. they‘ve had a difficult past, shall we say. they might have thought the new ceo would bea might have thought the new ceo would be a new chapter and beginning, but already they‘re having to talk about already they‘re having to talk about a bribery allegations. how is the company? well, it's too early to blame the new boss for that one t happened before him. this reminds me, when i was at school we did a history course on the age of expansion, conquering mexico and carving out an empire for spain that made individuals wealthy. if you think about internet companies that have done well they‘ve been like that. once it was conquered the spanish sent in lawyers and surveyors and governors and started running the economy properly and that seems to be what‘s happening to a lot of internet companies, they we re a lot of internet companies, they were set up and made lots of money ina were set up and made lots of money in a newmarket and they were successful. then you see problems,
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legal problems, accusations of sexual harassment, bribery accusations, the company not managed particularly well, claims people we re particularly well, claims people were unhappy working there. profits are still doing nicely. no, they don‘t really make profits, it‘s... revenue shall i say. they're powering in. they‘re bringing in this new guy from, he is known to be an organiser, well respected manager. they want that money flowing in, but all the reputational problems to go away and they reckon he is going to do that. he has a lot on his to do list. usjobs, figures are due out today. we have had some information from the states over the last week about consumer spending and inflation. tell us why the jobs figures are important. these are the august figures, we are expecting about 200,000 new jobs august figures, we are expecting
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about 200,000 newjobs to have been created. we are looking for is that out of higher wages, and what is the total? august is difficult because it‘s a mid—sense summer holiday month. they‘re difficult to predict. why they‘re being closely watched is we know the federal reserve is thinking about when it needs to increase interest rates again, how much it needs to pull back on the money it‘s been pumping into the economy. it will reach a tipping point eventually. if the figures are good it will be another piece of the jigsaw that the fed is looking at to decide does it need to step in and start returning to normality, is the economy growing strongly enough it can take away all the props and that support it‘s been getting in over the last couple of years? would 200,000 be enough? yes. thank you very much. ina very much. in a moment we will look at the business pages to find out what‘s making headlines across the newspapers. first, let‘s get a reminder of how to get in touch with
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us. the business live page is where you can stay ahead with all the day‘s breaking business news. we will keep you up to date with the latest details. we want to hear from you too. get involved on the bbc business live web page. business live on tv and online whenever you need to know. at the start of the programme we asked you about what was your worst travel journey. this asked you about what was your worst traveljourney. this story that flights are being probed, two flights are being probed, two flights delayed for hours on a ru nway flights delayed for hours on a runway in canada. you can see that there. passengers said they were held in deplorable conditions. dave says he flew into dc and from the landing to the airport hotel took longer than his entire flight from
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london. that‘s about eight hours. lance says a nine—hour delay in gatwick for a flight to bulgaria. not a great start to the holiday. and another detained in mexico, not allowed to — back to cuba. i am confused. james bevan is back here. any travel delays for you? confused. james bevan is back here. any travel delays for you ?|j confused. james bevan is back here. any travel delays for you? i think the cynical aspect of air travel is when they overbook flights and it‘s absolutely montrous, they still make people stay behind, there should be fines on that. also a focus about what‘s happening at wells fargo, a big bank, set up fake accounts and not just a few big bank, set up fake accounts and notjust a few dozen, a few hundred, seems millions of fake accounts and the problem has got worse. well, we
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knew there was a substantial problem. what happened was that the company were incentivising employees to cross—sell, but they were not keeping an eye on what was going on and the employees were saying, we have to do this, why don‘t we create accou nts have to do this, why don‘t we create accounts and pretend these people are signed up and we will look clever and everyone will be happy. i rather suspect the board went along with it because the the company said we need to know exactly what went on and the sums and the numbers are big are than previously had been expected. hands—free, cordless, how do you like your vacuum cleaner? preferably in the cupboard. i am not keen on that sort of thing. i like the idea of the robotic cleaner: this story in lots of the papers, shops are planning special offers on powerful vacuums after they‘re banned by the
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eu. the interesting element to this story is that lots of shops are putting prices up on these powerful vacuums because from today they‘re banned from the eu. it's an interesting issue. when you say they‘re banned, they‘re not going to produce or buy more but they can sell off old stock. there is an expectation, people say i want one of those powerful ones and they‘ll buy one while there is still stock in the shop. this was a brexit issue. apparently uk won‘t necessarily change the law. you can get more suck for your money. good to know. there will be more business news throughout the day on the bbc live web page and on world business report. we will see you again next week for more business news then. goodbye. good morning. it‘s the first day of
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september and the first day of autumn, probably felt like that, it was chilly because we had clear skies throughout the night. cloud for scotland and a showers around the english channel. for most of us today the emphasis is on a dryer day with good spells of sunshine. one or two mist and fog patches first thing, those clearing fairly quickly. cloud developing into lunchtime. while it‘s dry for many there is a chance of the odd shower to the south—east of scotland, perhaps one or two in northern ireland, as well. maximum temperatures about 17 or 18. the bulk of the showers will be down the eastern side of the pennines. lincolnshire, east anglia and the sues. but for wales and the south—west it should remain dry with sunshine and feeling pleasant.
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temperatures up to about 18, 20. this evening the showers across the eastern areas will tend to clear. with clear skies again taking us into the start of saturday it will turn chilly. these are the temperatures in the towns and cities. in the countryside though be as low as about three or four or five. a chilly start to saturday morning. but for saturday it should be a largely dry day with good spells of sunshine. downhill for sunday, cloud spreading in from the west and with that rain spreads in, as well. saturday, a chilly start but lots of sunshine. the odd light shower, very light shower across central and eastern areas. for most it will stay dry. light winds and feeling pleasa nt dry. light winds and feeling pleasant with temperatures about 17 to 21 in the capital. into saturday night again with clear skies it will
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turn chilly across eastern areas but notice this area of cloud and rain and that‘s going to move in from the west. this low pressure, a nasty weather picture with that rain spreading in quickly during sunday morning. that rain will be heavy, breezy conditions going through sunday. that rain gradually spreading eastwards. the brighter skies will be longest across eastern areas. top temperatures on sunday about 16—18. bye. hello. it‘s friday, it‘s nine o‘clock. i‘m matthew price, welcome to the programme. nine members of gas staff are suspended over allegations of abuse and assault at an immigration centre. we will give you all the details. it was an image of the syrian refugee crisis that shocked the world — a little boy dressed
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in shorts and a t—shirt, drowned and lying face—down in the sand. two years on, alan kurdi‘s aunt talks to us exclusively about whether his death has changed anything. two years later after that‘s tragedy, i really urge citizens to go out there and tell the
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