tv World Business Report BBC News September 14, 2017 5:30am-5:45am BST
you are watching bbc world news. i am david eades with the headlines: it's emerged eight residents of a florida nursing home died after hurricane irma knocked out its power and air conditioning when it hit the state on sunday. police have launched a criminal investigation into those steps. —— deaths. the public inquiry into the fire at grenfell tower in london opens later. it will examine the cause and spread of the fire, high—rise regulations, and the actions of the local authority. at least 80 people died in the blaze injune. the former drugs company boss martin shkreli has beenjailed in the us after a judge found that he posed a threat to the public. shkreli had offered $5000 to anyone who could get him a strand of hillary clinton's hair. the cassini mission to saturn will be making its final plunge into the planet in the coming hours. the probe will take its last pictures of the ringed planet and its moons. 0k. time now for world business
report with sally. panic on the high street: it was britain's first bank run in 150 years. but a decade on, have the lessons of northern rock been learnt? plus, the oil age may be ending, but what comes next? toyota is betting on hydrogen. we will be hearing from the european boss at the frankfurt motor show. hello and a warm welcome. i am sally bundock. this is world business report. we start with an uncomfortable anniversary for the financial industry here in the uk. exactly ten years ago today the bbc
broke the news that high street lender northern rock had been forced to ask the bank of england for help. what happened next was an early sign of the global financial crisis to come. it had huge implications for the industry and led to major changes, but some say not nearly enough. so if we have a look at the scenes that were all over the screens. these were northern rock branches all around the uk. the news sparked the first run on a british bank in 150 years, with savers queuing to try and get their money out. five months later the bank was nationalised. northern rock had borrowed too heavily on international money markets in order to lend to customers. and as fears of a financial crisis began to grow, the cash dried up, forcing the bank to the brink of collapse. so what's changed 7 well, here in the uk, savers get much more protection now. as of this year, the government guarantees you will get back up to £85,000 — that's around $112,000 — if a bank fails. that's well over double what it was before the financial
crisis. what about the banks themselves? they are now obliged to keep more money in reserve. and they have had to ring fence their retail services from the investment arms. but is it enough? the man appointed by the uk government to review the financial industry after the crisis told the bbc‘s newsnight programme this week — that lots more needs to be done. iam i am really very disappointed that the bank of england does take the view that it now takes. it is very different from the one mervyn king took when he was governor, that we have built enough when it comes to capital buffers. i think the argument and the evidence, the cost and the benefits points to the need to go quite a bit further. i'd say we are roughly on a global level half way in where we ought to be. i believe we would be in huge trouble if a very large, very complicated banking institution got into trouble. chris wiscarson is the chief
executive of the equitable life assurance society. it's the world's oldest mutual insurer, and, as many uk viewers will remember, it came close to collapse in 2000 and was forced to close to new business. chris — you say not enough was learned from equitable or northern rock? you still feel that we are vulnerable. why? the world is always going to have new developments. the technologies that we see today are very different to the ones that existed ten or 20 years ago. if you look at financial stability, it is based on the movement of credit money around. i think the bank of england and new regulations concerning capital have done wonders, there. but also payment systems, and how you get money from you to me, is fundamental to the good workings of any system. with blockchain, for example, that is revolutionising underneath the covers for us. banks further depending on these technologies need to be aware of the risks of those.
who does? who in the bank actually isa who does? who in the bank actually is a rare of those risks?” who does? who in the bank actually is a rare of those risks? i am sure they would argue that they have risk advisers or risk managers, that kind of person, or organisation is back on tap to give them advice. many banks have had to learn their lesson is extremely hard. —— organisations on tap. what are you proposing that banks need, not forgetting that since northern rock, we have had a huge shift in financial services in this country and around the world, in terms of new financial technology apps available. it is notjust the high street any more. consumers are served by any number of financial institution. my concern is the risks
underlying these transactions. who on the board of his organisations asks what the risks are these technologies. i was speaking with a global player and asked what they we re global player and asked what they were doing about blockchain. it was evidence that make evident that it was one of the key parts of their provision of services. but they knew very little about blockchain, less than me, and i know very little. but at no point did he use the word risk when it is only what they did. have we not seen a big shift though in terms of managing risk is make so, for example, when we voted to leave the european union to me here in the uk, we saw collaboration between the bank of england, the treasury, and also lots of provision for banks in the wake of that decision to leave the wake of that decision to leave the european union, and the concern
about the run on banks and what effect they could have on markets. we are seeing pre—emptive action, we? we saw a great reaction from the bank when the brexit vote took place. that had significant consequences for many companies. bringing interest rates down souls problems, but it does not solve all problems. —— solves problems. banks have significantly more capital for things that go wrong. however, if a payment system did not work, is the customer going to say, well, that is all right, the bank are well capitalised, but i can't actually get paid? it is interesting. chris, thank you for your time. this is something that will be discussed at length elsewhere. we have a lot on the anniversary on our website. a lot of comment about where we have come and where we have come from. do ta ke
come and where we have come from. do take a look when you have time. but next, let's take you to germany and the frankfurt motor show. the environmental lobby group greenpeace held a protest outside on wednesday proclaiming the end of the oil age. inside, the big carmakers have been unveiling their visions of a battery—powered electric future. but one of the biggest, toyota, has made a major bet on hydrogen fuel cells. 0ur reporter theo leggett spoke to the european boss drjohan van zyl, and asked him if they had chosen the wrong option. i don't think so. toyota was already working towards this with various things in the past, like their hybrid strategy. a hybrid that was not required to be plugged in. but oui’ not required to be plugged in. but our hybrid technology allows us to build outlets, plug—in technology, but we also have a hydrogen vehicle. 0ur but we also have a hydrogen vehicle. our view is not that the application will require a specific technology. and the customer will determine
that. —— our view is that. so we have the bloodless, plug—in, and hydrogen vehicle. but if you are building hydrogen cars along with the others, that is a lot of infrastructure. —— plugless. can you afford that it is russia? absolutely. hydrogen society need to be greater. that will take longer. —— can you afford that infrastructure. hi vision, in the long—term, is a good solution in terms of an alternative form of energy. —— hydrogen. you can utilise hydrogen to store energy. if you wa nt to hydrogen to store energy. if you want to convert to renewable energy and storage, you need to put in a massive battery. i do know that is practical to do it that way. in the long—term, we see a hydrogen as and
energy for creating a society which is based on hydrogen. the european boss of toyota. let's go to asia now — and beijing has protested after the us blocked a takeover of a computer chip company by a chinese backed investment firm. rico hizon is following this for us. comes down from donald trump. the sale of lattice semiconductor. it was seen as a sale of lattice semiconductor. it was seen 3s a wi’ist sale of lattice semiconductor. it was seen as a wrist to national security due to the transfer of intellectual property. the white house intervention came after the transaction was pushed to the president's death. they hope that he would improve this after it was
earlier ruled against. but as that the green light, donald trump gave it the thumbs down. it was the fourth time in 35 years that a us president has ordered a foreign ta keover of president has ordered a foreign takeover of an american firm stopped because of national security risk. asa because of national security risk. as a mention, the chinese are different, disappointed, said the security checks should not be used asa security checks should not be used as a protection, but that the us should create a fair and transparent business environment. sally. pinky grey mud. let's would limit at the markets. a record close of the s&p 500. the big event in europe, the brexit meeting. —— thank you for that. —— let's look at the markets. there was not much change in the month of august. another record high for the s&p 500. itjust keeps rolling on. i will season for the news review.
a robot named yu—mi has surprised music lovers in italy, taking to the stage in the city of pisa, accompanied by none other than the famous tenor andrea bocelli. what was it doing there? the bbc‘s james reynolds has the story. this conductor never drops its basson, and nor does it ever get angry with its orchestra. yu—mi the robot has been preloaded with a series of moves made by this old—fashioned series of moves made by this old —fashioned human conductor. series of moves made by this old—fashioned human conductor. an exhausting process. a long time, a long time. a good learner? are three—time. but at the beginning, we stopped seven or eight times, but —— and every start, it took 25} . . ~ , , — 7
i ‘ffi pisa rag: pisa has of doing things a tradition of doing things differently. this city has an unofficial rule: if it works, even if it looks a little strange, then go with it. in this spirit, pisa hands over a concert to a robot. without notice, the robot conducts andrea bocelli. a good audition, but the singer will stick with human beings. for now, and probably into the singer will stick with human beings. for now, a go irobably into the singer will stick with human beings. for now, a go foriably into m m gii not mu ~ 7 , w £53355: it was ' ﬂ b it was missing i conductor. i think it was missing it was funny to just see the had. it was funny to just see the arms moving, but no had there. even just a blank face. i think it would help. if it gets any better, it
could bring in a strange future, with a robot conducting filler robot musicians, perhaps. what, if anything, would be left for the rest of us? —— conducting fellow robot. this is bbc news. the latest headlines — it's emerged eight residents of a florida nursing home died after hurricane irma knocked out its power and air conditioning when it hit the state on sunday. police have launched a criminal investigation into the deaths. the public inquiry into the fire at grenfell tower in london opens later. it will examine the cause and spread of the fire, high—rise regulations and the actions of the local authority. at least 80 people died in the tragedy injune. the former drugs company boss martin shkreli has beenjailed in the us after a judge found that he posed a threat to the public. shkreli had offered $5,000 to anyone who could get him a strand of hillary clinton's hair.
now, it is time for our newspaper review. what's making headlines around the world ? we start with a rather fetching halo of stars. framing european union presidentjean—claude juncker on the front page of the telegraph following his state of the union address yesterday promising an ever—more powerful eu. the financial times has a piece on the bank of england's dilemma