tv BBC Business Live BBC News September 11, 2017 8:30am-9:01am BST
this is business live from bbc news, with ben thompson and sally bundock. hurricane irma is blasting up the west coast of florida after buffeting the city of miami, with dangerous flooding along long stretches of coast. live from london, that's our top story on monday 11 september. the economic fallout of irma — the insurance industry braces itself and the president pledges whatever resources are needed — we assess what's at stake. and the boss of uber in asia speaks exclusively to the bbc, admitting that the culture at the scandal—hit company has not kept up with its growth. and as the us counts the cost of irma, we'll assess what impact it could have on growth for the world's largest economy.
can capitalism ever be a force for good? we speak to the boss of one firm that'sjust been named in fortune's annual firms to change the world list. and — in the firing line. the boss of levis says there's a right way and a wrong way to fire staff. we want to know, what's your worst sacking story? or have you had to fire someone? let us know, just use the hashtag bbcbizlive. hello and welcome to business live. if you want to get a story about being fired off your chest, you know where to come. over 3 million people are without power in florida as hurricane irma continues its devastating trek
across the state. the business district of miami is suffering from severe flooding and it's not over yet. it's all going to have a huge impact on the united states, the world's biggest economy. experts say this is the most expensive weather to ever hit the united states. it's too early to put an exact figure on the cost, but the bank credit suisse is projecting losses could be in the region of 125 to 250 billion dollars. the latest on the number of americans claiming unemployment benefits show the first signs of the economic fallout. with a spike of 62,000 more people claiming benefits — mostly in texas following hurricane harvey. temporary and casual workers are the most vulnerable. when it comes to florida, agriculture is hugely important to the economy — it's known as a major orange producer. in 2015, it brought in almost $8.4 billion into the economy.
hurricane irma is expected to make a significant dent. and with such big problems, the state is likely to the federal government for help. on thursday the us senate approved $15.25 dollars in aid for areas affected by hurricane harvey and other natural disasters as part of a deal allowing the federal debt level to rise. drjacob parakilas is the deputy head of the us and the americas programme at chatham house. ben was going through some of the detail. it is extremely difficult to predict what the fallout will be? yes, the hurricane is still making its way up at florida and i would not want to venture a guess as to what the impact will be. but it will be really significant beyond the disruption to lives. but florida is well prepared in many
ways, isn't it? since hurricane andrew in the early 1990s, new building regulations were put in. compared to some caribbean islands, fraud are no better position. they are ina fraud are no better position. they are in a better position in terms of building regulations. the problem is that there has been a massive spike in development in florida and andrew the last major hurricane. it has been hit by smaller hurricanes since 1992, but florida has been massively expanded in terms of population and development since then, so the scope of damage is much larger. and this isa of damage is much larger. and this is a 200 mile wide hurricane we are talking about. talk us through the more long term impact? one of the problems with florida is that it is an incredibly low—lying state, so what is not damaged by the winds is vulnerable to storm surge, sea—level
rise and flooding of various kinds. that can have impacts on structures on the buildings, houses and businesses. also, the erosion, the way that cuts away at state infrastructure, roads, bridges, railways, can be very expensive to fix and require expensive long term fixes. we saw in new york after hurricane sandy, the damage to the new york subway system was significant and required billions of dollars. so it is a massive impact on the local economy which will be felt for many years. what about the political impact? it is an interesting dynamic. president trump is well aware of what happened to president bush politically after hurricane katrina and has been forward leaning and has pledged to draw support. he is more willing to open the taps and use federal money to support reconstruction, but that gives him a headache with the more conservative members of his caucus, the freedom caucus, who are generally opposed to federal spending, even in the case of
disaster relief. thank you for your time. on our website, there is a hurricane irma live page, with all the latest information if you are following this. let's take a look at some of the other stories making the news... german aviation investor hans rudolf woehrl has submitted a $600 million offer to buy the insolvent airline, air berlin. it's germany's second—largest, but filed for bankruptcy protection in august. the airline has around 140 leased aircraft, but it's the valuable take—off and landing slots in germany that could be most attractive to any would—be bidder. details of the latest apple device have been revealed in an apparent leak by two technology websites. two news sites were given access to an as—yet—unreleased version of the i0s operating system. the code refers to an iphone x in addition to two new iphone 8 handsets. the company is expected to announce its latest models on tuesday. the world's highest—paid youtube star, pewdiepie,
has used the "n—word" during an online broadcast. after using the term, ahe 27—year—old swede, whose real name is felix kjellberg, apologised and said: "i don't mean that in a bad way." he has previously had to defend himself over allegations of anti—semitism. the world's biggest auto market — china — is said to be considering a ban on fossilfuel cars. the country's vice minister for industry and technology told a gathering that his department has started "relevant research" and is working on a timetable for china. sarah toms is in singapore. this would be quite a significant change. that's right, and it's part ofa change. that's right, and it's part of a drive to reduce pollution and carbon emissions. china is now the world's biggest car market, so this
is good news for the country's new energy car manufacturers, and we saw that reflected in the markets today. chinese electric car maker byd saw sharesjump. chinese electric car maker byd saw shares jump. the chinese government announced the plan over the weekend, but it hasn't yet decided when the ban on sales of diesel and petrol ca rs ban on sales of diesel and petrol cars would come into force. the move follows similar plans announced by the uk and france. these measures will of course bring huge changes to the car industry is and manufacturers will be forced to that. global manufacturers like volvo, ford and general motors are already working to develop electric ca rs already working to develop electric cars in china and get a slice of that market before the new rules are introduced. thanks, sarah. investors are keeping a close eye on the potential damage from hurricane irma. as we've discussed, the costs are set to rise to the tens of billions of us dollars
in the coming weeks and months. insurance companies as well as reinsurers bore the brunt at the end of last week, and are in line for more losses this week if the bill looks set to rise still further. what that means for overall growth in the us — the world's largest economy is still the big question. shares in asia look like this, with japan's nikkei hitting a one—week high after the dollar recovered against the yen, boosting exporters that have taken a hit lately and financial stocks back on the up, after an easing in tensions with north korea. there is some concern that that could escalate again today — the united states goes back to the un later to push for a vote on further sanctions today. elsewhere in the region, the new boss of uber‘s asian unit has been speaking exclusively to the bbc‘s karishma vaswani and told her it will not sell up in asia, despite questions over its position
in one of the fastest growing markets. this is a big part of the world. it's 20% of rides. there's a huge percentage of the drivers. it is a growth market across the region for us and we need to do what we can to make sure that we contribute to that. so no exit strategy for asia. let's talk a little bit about the culture, sexual harassment claims. a court case on alleged trade theft and what has been described as a cut throat company culture in the united states. has all of that damaged the uber brand here in asia? uber grew incredibly fast over the last many years since inception and some of the processes and some of the culture didn't keep apace with that growth. i can tell you, having joined the organisation, that the amount of focus is extraordinary across the leadership teams globally to make the culture, the processes catch up with its growth. everybody is totally focussed on that from a brand standpoint,
from a cultural standpoint and where we want to be standpoint. we're not perfect yet, but we're working hard towards getting there. do you think he is a perfectionist? joining us is remi 0lu—pitan, multi—asset fund manager, schroders. ben was talking about issues with the markets, the fact that hurricane irma is not as bad as was projected, although i imagine anyone who has the opportunity to watch anything in florida would disagree. give us your ta ke florida would disagree. give us your take on the markets. last week was tough for the markets, because there was a lot of uncertainty with regards to the costs associated with hurricane irma. there is still uncertainty, but the markets are recovering. 0ver
uncertainty, but the markets are recovering. over the weekend, we didn't have another missile from north korea, so that has relieved some pent—up risk uncertainty. right now, the market is focused on the long term growth picture. we accept that us growth will be temporarily dented, but overall global growth is still quite strong, which is good for risk assets such as equities. still quite strong, which is good for risk assets such as equitiesm is early stages, but how likely is it that events like the hurricane the us have hit economic growth in the us have hit economic growth in the united states? i expect that to filter through over the next couple of months. i guess the last quarter of months. i guess the last quarter of this year is when we are likely to see the most impact, particularly with regard to jobs, to see the most impact, particularly with regard tojobs, retail sales and the auto sector in particular. we will see what impact it will have on the financial sector, the insurers. it will take time to filter through. thank you very much.
you will be returning and we have lots to discuss, including, think about a sacking story if you have one! i have put you on the spot. maybe you did the firing. one! i have put you on the spot. maybe you did the firinglj one! i have put you on the spot. maybe you did the firing. i have never been fired. what about that hanging basket watering job?|j didn't get fired, i just went for a wander. he is such a diva to work withmacro just joking. still to come: ethical investing, can capitalism ever really be a force for good? yes, according to the boss of one social impact investing firm. he'lljoin us a little later to explain. you're with business live from bbc news. the uk maritime sector is today calling on the government to do a "better job" of backing the industry in
the run up to brexit. the chairman of both carnival cruises and maritime uk, david dingle, says shipping will be crucial to the uk economy once it leaves the eu. hejoins us now. we talk about the impact of brexit, but first let's talk about the contributions that the maritime industry makes to the uk economy. well, this is one of xwrin's largest industries. we contribute nearly £40 billion to the uk economy and we are supporting nearly one millionjobs in this country. so this is a very large industry. it's larger actually than aviation or automotive. very important to this country. strategically also because 95% of our trade is by ship and therefore, we're responsible for taking exports out of this country and bringing
into vital imports particularly for insta nce into vital imports particularly for instance much of the food that goes on to our supermarket shelves. so we're highly profitable. and also, we're highly profitable. and also, we are strategically vital to this country's interests. do you worry though that your voice will be drowned out by the other industries here in the uk? that saying a very similar thing that the government could be doing a betterjob. you're not alone, are you? no, but this is why an event such as london international shipping week which commences today and which starts with a round table at downing street this afternoon is so important in getting our message across. we do have a very good relationship with government at the moment and government at the moment and government is listening, but there are definitely things we need to be done to ensure that the future prospects of our industry are maximised. and david, briefly, what do you want to see to secure the future when it comes to brexit? what are the concrete changes that you might get? well, in the short-term we must create a frictionless trade
situation particularly between here and mainland europe. that is absolutely vital so that our roll on roll off business, lorries goes across the channel is maintained and protected with no hold—ups. we also wa nt protected with no hold—ups. we also want the government to double its support to seafarer training. that's a further £15 million and we also wa nt to a further £15 million and we also want to get right alongside the government in terms of the national ship building strategy. david, it is good to talk to you. david dingle, thank you forjoining us. you're watching business live. our top story: hurricane irma is blasting up the west coast of florida after buffeting the city of miami with dangerous flooding along long stretches of coast. we will keep you up—to—date on the bbc of how that storm progresses and we have been talking to about the cost to the economy and the insurers as the clear up operation begins in certain parts of the caribbean, cuba and as it continues up florida.
the financial market is taking it in its stride. strong gains at the start of a new week because the hurricane was not as bad as many we re hurricane was not as bad as many were pricing in at the end of last weekment down from a grade four to a grade two, hurricane. now let's get the inside track on "social impact investing". it's a form of investing, but with a conscience. the idea is that investors put their money into companies they hope will help people in developing countries grow their way out of poverty. they include insurance forsmall farmers, pharmacies for rural communities. leapfrog investments is one of the biggest firms offering this kind of service. it allows its clients to invest in businesses serving low income consumers in africa and asia. it now operates across 33 markets in the region. dr andy cooper is the founder of leapfrog investments. hello andy. welcome to business
live. now, you started this company in 2008? is that correct? yes. and it was sort of, you had the help of former president bill clinton launch this. just tell us about that. well, the story was a crazy entrepreneurial one. they usually are. we entrepreneurial one. they usually a re. we love entrepreneurial one. they usually are. we love those sort of stories. we decided that we were going to to go for this new strategy if you helped people do good, you could generate out sized returns for investors. we launched leapfrog with plinth and a short time later lehman brothers collapsed. we fundamentally had a demographic destiny that we all recognise now of asia, africa, latin america, billions of people joining the grid and getting mobile
phones. just tell us about this launch because you were 33 years old. you didn't know plinth. it was kind of, just your ten assy having met someone low down in his organisation and he invited you to speak publicly at his event and he introduced you. i imagine you were extremely nervous? well, gandy once said if you're the bearer of a truth, none of this matters because you are able to change structures and change things. ifelt you are able to change structures and change things. i felt we you are able to change structures and change things. ifelt we had a fundamental idea. that so many people could rise and they weren't going given the financial tools, the health care and the energy that they needed and this was a massive, missive business opportunity. it was just so obvious to me. so when i spoke to him and i spoke to folks who were our early backers and i said here are the team a group of ceos and partners who have done this before, and we can find the business and back massive growth. we said we
we re and back massive growth. we said we were going to raise $100 approximately and reach 25 million people through our companies with these essential services and that was 2008. when we talk about organisations like this, there is an awe sumption it should be a not—for—profit. you make a profit, but you do that with the view that capitalism can work. it can be profitable, but it can also work for good. just explain how you do that? so we take capital from major investors, nine of the world's largest insurers and the big banks or pension funds. we invest that capital in companies that say i am not going to change the 2% or the 5% that are middle—class, i'm going to pursue the other 95% and i'm going to get massive scale through that and generate out size growth. if you look at leapfrog companies now, there are 20 companies, but they
serve 111 million people. that's more people than there are in the uk. just to put this in prospect for viewers. you provide an investment vehicle which the likes of goldman sachs and jp morgan sell to their clients and through your investment vehicle people are getting access to medicines and getting insurance for their farms, that kind medicines and getting insurance for theirfarms, that kind of thing. imagine you're a low income farmer ora imagine you're a low income farmer or a woman who wants to start a business, what you lack is savings. you lack protection for your vehicle or the ability to take risk by planting a new crop or adopting irrigation and if your kid gets sick you may lack insurance to go to a doctor or get advice. we provide capital to companies that serve those people and help them to rise. so it's capitalism as an enormous force for good. as we said at the
start, named as fortune's annual firms that will change the world. what does that let you do? well, we lost to the likes of apple... what does that let you do? well, we lost to the likes of apple. .. you didn't lose, you came fifth. it is not winning and losing. we are above airbnb and that's because the investments we a re airbnb and that's because the investments we are making show that investors cannot get no trade off, but can generate out sized returns and in doing so you open the gates of the capital markets to purpose driven business and that's trance fortive. that's one of the biggest changes we will see in our world in the coming ten years and it will reshape how capitalism is done. thank you for coming on and being on business live. it is good to have you on the programme. keep an eye. now, is there ever a "right" way to fire a member of staff? yes, according to the boss of jeans maker levis. he says the decision to let staff go can sometimes represent the "harder right" thing to do compared with the "easier wrong"
as he explains in the latest of our series of ceo secrets. it's always better to do the harder right over the easier wrong. i realised shortly after i got there that the team that got the company to where it was at the time wasn't really the team that i needed to get the company to where we needed to go. i realised that i was going to need to make some changes in people at the top of the company and it's always hard to look somebody in the eye and tell them that the skills that they had weren't really a good fit for the skills that were needed on a go forward basis, but what i've come to realise is that, making that hard choice, making that hard decision, the harder right over the easier wrong is always the right thing to do, but when you're telling people that their skills are no longer a good fit for the company, telling them that in a way that
treats them with respect and dignity so that they can move forward with their career and their lives, leaving the company with their heads up high for the service that they did contribute is always the best way to get the right outcome. the boss of levi's there. we asked for your comments on your worst firing stories. matthew says, "i plan to fire a member of staff. i made a note. i left it on the desk. i asked the said employee to tidy up the desk and they found the note." easily done. we don't want to dis you. remi 0lu—pitan, multi—asset fund manager at schroders is joining us again to discuss.
a rarebit of good news about the city of london at the moment. tell us more? a rarebit of good news. this survey was conducted injune. so, a lot has happened since then. it is quite good. london is on top of new york, frankfurt, tokyo in terms of a great place as a financial sector and that's because of the high quality of staff and the ease of doing business. since then, sincejune, a lot of companies in london have announced that they are going to move some of their workforce to frankfurt. and the other thing to note is that frankfurt actually did quite well in the survey. so last year it was 23rd and now it's11th so it's creeping up. it is a rarebit of good news, but things are happening since then wallow in it while it lasts. exactly. we will see you soon. bye— bye. bottom good morning.
while we have got hurricane irma in florida giving some very damaging winds, this morning across the uk we've got our own strong winds to be slightly concerned about across wales, and south—west england. there could be some disruption this morning because we are looking at gust about 60mph around the coast, inland up to 40mph. 0n gust about 60mph around the coast, inland up to 40mph. on top of that some really heavy showers and longer spells of rain to contend with. there could be disruption in this pa rt there could be disruption in this part of the uk, through the morning, but elsewhere, really a blustery start to the day. heavy showers out there. as we go into the afternoon some of the showers could turn heavy and thundery as well. into the afternoon the showers will continue across northern ireland. a few bright spells in between the showers. i think for scotland, bright spells in between the showers. ithink for scotland, here we will have drier weather towards central and southern areas, but towards the north and the east the rain will continue. temperatures, 14
or 15 celsius. head nothing england and wales, frequent showers, some of the showers heavy and perhaps even thundery as well. but some drier, brighter interludes in between. at best temperatures between 16 to 19 celsius, but where you have the shower after shower after shower after shower, temperatures may only be about 12 or 13 celsius. the temperatures will tumble within the showers, but as you can see some of those will be heavy. the blustery winds continuing as we go through this evening and tonight. a lot of the showers across eastern areas clearing away, but towards the west they will continue into the early hours of tuesday. 0vernight temperatures down to about ten to 12 celsius. so a bit of a chilly start on tuesday. again, some fairly blustery conditions, not quite as bad as this morning. starting off with some sunshine, but showers across wales, north—west england, and western parts of scotland throughout the day. tuesday is going to bea throughout the day. tuesday is going to be a drier day compared to today and there will be more in the way of sunshine. so perhaps feeling more
pleasa nt sunshine. so perhaps feeling more pleasant as well. temperatures around 19 celsius. you see this cloud and rain spreads into the west and that's associated with this area of low pressure that's going to move across the uk, through wednesday, tuesday night and into wednesday. now, the isobars are really tightly packed and really strong winds expected into the early hours of wednesday. we will be keeping a close eye on that one, but anywhere from southern england southward, some really strong winds to con continued with. for many of us though on wednesday, a day of sunny spells and blustery showers. see you later. hello. it's monday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. our top story today — devastation across florida as hurricane irma continues to pound the state with winds of around 100 miles an hour. hurricane irma has formed these waterspouts in the atlantic that make their way on shore. wind speeds are in excess of 90 miles an hour.
here on the fourth floor balcony, there are more like 100 miles an hour. we'll hear from some of those affected throughout the programme. plus — rare access with young paedophiles who tell us they will not abuse children. but is there enough support to stop people offending? there needs to be a way that they know they can get help, and it's going to be anonymous. if you had known that you could have got help anonymously, would you have done it? definitely, yeah. those full interviews in around 15 minutes' time.