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tv   BBC Business Live  BBC News  September 18, 2017 8:30am-9:01am BST

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hello. this is business live from bbc news with ben thompson and sally bundock. british prime minister heads to ottawa with a dispute over planes hanging in the air. live from london, that's our top story on monday 18th september. mrs may wants to protect uk jobs in a row between canada and the united states over subsidies. also in the programme.... ryanair shares sink by over 3 percent as one of the world's biggest airlines apologies for cancelling thousands of flights. and ahead of a big week for the fed this is how europe has opened, as us policy makers prepare to reign in the emergency stimulus that's been propping up the us economy. and what do you know about the data you are sharing all the time when you're surfing the net —
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socialising online or talking to your ai device in the home? we will get the inside track on what the worlds top digital agencies are doing with your data. and as ryanair continues to cancel 40—50 flights every day we want to know — has it put you off flying with the airline? let us know... just use the hashtag bbcbizlive. hello and welcome to business live. a very warm welcome to the programme. uk prime minister, theresa may, is in canada getting involved in a trade dispute between the us and canada. why? well, it all centres on a dispute over state subsidies that involves canadian plane firm bombardier and rival us plane maker, boeing. today mrs may will discuss that with canadian prime ministerjustin trudeau. so what's going on? it all relates to canadian government subsidies. all aircraft manufacturers get money from their governments
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to help with the huge cost of developing new planes. but the us giant boeing says bombardier‘s support was against the rules and it unfairly helped the company win a contract to supply over a hundred passengerjets to us airline delta. theresa may is concerned because bombardier employs 4000 staff at a factory in belfast, northern ireland. those jobs are particularly important because theresa may's government is propped up by votes from northern ireland's democratic unionist party. she needs them to get legislation through the parliament — after the recent election left her without a majority. and of course, there's also the impact on trade between the uk and canada. it's worth more than $20bn a year. but after brexit, the uk and canada will need to strike a new trade deal. so the uk needs to stay on good terms with both the canadians and the americans. thank you.
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we'rejoined by christophe bondy, public international lawyer at cooley llp and former trade adviser to the canadian government. good morning. good morning. as we explained, it's a con decade of story involving politics, big business, government subsidies, how do you think it will play out?” think it's important to understand the nature of the bubbling complaint, it allows a company to turn to its own government and say this foreign competitors coming into oui’ this foreign competitors coming into our market, subsidising, undercutting the market and what's interesting about this particular dispute, boeing wasn't competing for these particular playing contracts. the planes were for 100 seater planes, boeing makes 737 is, delta which wanted to buy the 75 planes did not want to buy the boeing
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planes, the canadian government has been putting forward they want competitors and therefore there was no harm. what is quite ironic about this, the north american free trade agreement, nafta, which president trump has been quite the three look about prior to being elected and since, could actually help boeing? the interesting thing, nafta contains a chapter, chapter 19 which allows for the binational of precisely this kind of determination and national government. the thing is it boeing turns to the us government and the us government agrees there has been subsidies harm, the us government can apply a tariff against the import of bombard yet planes which will end up having serious damage to this contract and putting in jeopardy for example the jobs in canada and the uk which ben mentioned but this binational review allows for these kind of us government determinations to be reviewed in a neutralfashion. that's what canada wants to maintain. clearly boeing feels
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there's been some unfair competition here, from the point of view of the trump administration and the true dual administration and the theresa may administration, is it in anyone's interests for this to go further or is it likely to be resolved diplomatically, city because in this industry, the airlines industry there is constant press it and can't proceed when it comes to issues of competition? yes, i'm sure each side will be guided by an overall balance of interest and the government is able to, in any government decision if one side is favoured over the other usually the best government decisions is where eve ryo ne best government decisions is where everyone is a bit unhappy. i assume they will be looking for the best possible outcome and certainly from the point of view ofjobs and continued productivity, economy, to dramatic solution will be the best. thank you for your time. of course, any developments on that story and indeed how theresa may gets on in 0ttawa, we will keep you up—to—date.
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sticking with the aviation theme shares in ryanair are down around 3% this morrning. it comes after the airline announced over the wwkened that a0 to 50 flights were being cancelled every day for the next six weeks because it messed up its staff leave. that is one way of putting it! simon calder is travel editor of the independent newspaper and has been explaining what's going on. i've been dry for most of the weekend actually to find out what is going on, all we can really go on at the moment is what ryanair has told us the moment is what ryanair has told us which is due to a kind of administrative change in the league calendar they are suddenly faced with a number of pilots and cabin crew having to take their vacation right now or between now and christmas. now, in terms of the heavy demand pilots that continues until the end of october when we go into the winter schedules, there is less demand. that might sound odd, many people in global businesses will see through money at the problem, we will buy your leave,
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works overtime or whatever but are, for pilots, stipulations about the maximum number of hours they can work. it is very complicated but what is unprecedented is that an issue like this should lead to the cancellation of 50 flights a day, perfect and typically 9000 passengers and i calculate between now and the end of october you could have 400,000 passengers who will not be for it they want to be. already just this weekend, 30,000 people waking up in various parts of europe not offer they intended to be. that is simon cold, a familiarface here on bbc world news. you have an getting in touch, you have not held back, i did not think you would. death said i flew with them once, never again, the experience or too distressing, i always pay elsewhere. i have used them several times, no issues, why not get the best price but this is unforgivable, marriage
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into microwaves, applying what ryanair, iam into microwaves, applying what ryanair, i am worried. michelle, into microwaves, applying what ryanair, iam worried. michelle, i wish you all the best and we hope it goes well. let's take a look at some of the other stories making the news... general motors has been forced to recall two and a half million cars — according to china's top consumer watchdog. it's due to potentially faulty airbags made by troubled japanese firm ta kata. the defect has been linked to 16 deaths and multiple injuries worldwide and led takata to file for bankruptcy in june. shareholders in the luxury shoe and handbag—makerjimmy choo are set to vote on whether to approve the company's takeover by michael kors. the deal is worth $1.2bn and would represent the fifth time the brand has changed hands since it was founded in 1996. the majority owners of the pop—culture magazine rolling stone says it plans to sell its 51% stake in the business. the publication has suffered reputational damage in the last few years after it faced multiple lawsuits for defamation. the legal proceedings came as a result of an article
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about alleged rape at the university of virginia — the report was widely discredited by the media. it's not just rya nair experiencing serious troubles. it is a new zealand as well. a bust fuel pipe at auckland airport is causing travel chaos for thousands of passengers... hywel griffith is in sydney. what is going on? that's what people are dry to get to the bottom of, it looks like digging work ruptured this 168 kilometre pipeline fichardt speed auckland airport and the jets that land there. it's been a problem since last thursday, the details on the coming out over the weekend and we know about 2000 passengers every day have been affected, more than two d oze n day have been affected, more than two dozen flights affected, most of them domestic, unseen people around christchurch, auckland, wellington but quite a few strands tasman flights to sydney and melbourne and
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some international ones to la and san francisco. the industry, tourism, new zealand and the government saying this is the crisis they want to solve, we note the new zealand defence force has been brought in to truck in oil but it ta kes brought in to truck in oil but it takes eight trucks worth to fill one long haul aeroplane. good stuff, thank you very much. i am going to keep the markets really brief because i want to talk about one issue, but point, with the markets guest trevor who is standing by. this is what asia has done overnight. you get a sense the markets aren't worried about some of the geopolitical things dragging down the numbers. notably events in north korea. some of that fading into the background. as we know it only takes one missile to change all of that. that was the us on friday, a show overnight, let me show you quickly what is happening in europe, you can see the numbers, keeping an eye on the fed, we have the two de meeting on tuesday and wednesday, we
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might see an indication in rises of interest rates, bringing down that stimulus that has been propping up the us economy for so long. later we get eurozone inflation figures, an indication of whether inflation is still a problem in the eurozone, that's how joining us is trevor greetham, head of multi asset at royal london asset management. a lwa ys always nice to see you. tell us what is happening. good morning. inflation due out about ten o'clock, expected to drift downwards a little bit, generally, the picture of growth is quite robust around the world, inflation is a serious problem, central banks, looking to tighten central policy but because inflation is not rising much outside the uk, they don't feel there's a
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great deal of panic. the markets have started on a really strong note in asia and to a degree in europe, i know europe had to catch up their bet on losses on friday but wall street closing at a record high on friday. look at the very long run, share prices going up in the long run, record highs in that sense, you should expect to make record highs from time to time on stock markets but what is driving america at the moment is pretty robust growth, earnings growth coming through quite nicely, interest rates still very low and it's a bit of a goldilocks scenario, very much like the 1990s, we saw big rises in share prices. let's talk but coyne, it's interesting, the volatility again... but also very like the 1990s. interesting, the volatility again... but also very like the 1990sm interesting, the volatility again... but also very like the 1990s. it is. we saw comments last week about whether that coin... whether people should be investing in it but it's back. last week, a few things happened, you had the head of an
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institution, saying it was like to look mania, a speculative bubble, if a trader was caught trading they will be fined for stupidity. and you also have the chinese announcement they were going to clamp down on trading of that coin, but coin is probably here to stay, it's a new form of exchange but it's prone to fraud, hard to analyse, but this year that coin is up four fold, it fell last week and overnight it is up fell last week and overnight it is up13%, it fell last week and overnight it is up 13%, it feels just like fell last week and overnight it is up 13%, it feelsjust like how fell last week and overnight it is up 13%, it feels just like how .com was trading in the 90s. for speculators ensure traders it's an absolute gift. money is free at the moment, this is a side—effect of very low interest rates, you can borrow for almost nothing, speculate and that's one of the ways it is showing up at the moment, policies to lose, we think interest rates will gradually rise over the next few years, will gradually rise over the next few yea rs, not will gradually rise over the next few years, not expired basham are
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expecting a rate rise in the state until december, everything will have a healthy correction but it feels like we are a bit away from that. in a couple of sentences, the fed meeting, no major headlines?‘ a couple of sentences, the fed meeting, no major headlines? a bit of tapering? they will talk about reducing the stock of debt that they are holding, talk about for example, not reinvesting money that comes to you again, it's all quite tentative, they don't really quite know how to calibrate this sort of tightening, they will suck it and see, let things tighten up a little bit, see what happens to the economy, they can was reverse the policy later if they have to. not much more scientific than that. is that not cold making it up as you go along? someone has got to do it. yes. thank you. thank you. still to come: you're with business live from bbc news. we are giving out more data than ever before, the websites we are
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using, we will find out what the role's top digital ad agencies can do with all of that. you are with business live from bbc news. more signs of a cooling housing market today. the website rightmove says there's no sign of the usual autumn bounce as asking prices fell by 1.2% in the month with london seeing a 2.9% drop. miles shipside is a housing market analyst at rightmove. it is good to see you. interesting, isn't it? this is the time of the year when we start to see things pick up. people maybe want to move before christmas, but you are suggesting this isn't happening? we have seen an autumn price bounce for the last three years and not this year and london and the southern regions have fallen and that's
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dragging down the national average. asign of dragging down the national average. a sign of buyer affordability tempering what sellers are able to ask when they come to market and hopefully try and move before christmas. challenge for the house builders and for movers is what sort of houses they want to move into? we have seen demand for flats waning, but big family houses are still in demand? indeed. the biggest rise that we have seen 2.9% annual rate compared to 1.1% for the whole market is actually those second stepper homes. so families don't stop growing so demand is still there. our stats are showing that if there. our stats are showing that if the price is right and the property is right, then buyers are there and sales agreed actually 4.8% ahead of this time last year. but the critical thing is, fitting in with that stretched buyer affordability. yes, and differences across the country. we touched on them in the introduction there. there are big
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disparities. talk us through those? indeed. it is the northern regions that tend to have some steam left in house price rises, but prices have risen on an annual rate for the last six years. so 25% higher than average. wages haven't gone up much. london in particular has gone up more and therefore, we are seeing the slowdown more in london and the south benefits from the ripple effect yet there is a bit of head room in the north. interest rates still cheap. so, if you can get a mortgage, obviously tighter lending regulations with mortgage market review which was designed to slow down house price increases and we are seeing an effect of this here. miles, thank you for explaining that. our national obsession with house prices continues. it is interesting to see those changes. thank you. uk prime minister theresa may is on
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her way to canada as we speak. she is discussing trade among other issues. it is a convoluted story why the sub—prime getting involved in a dispute between canada and america. it isa dispute between canada and america. it is a tangled web. but we have been explaining it for you on the programme. a quick look at the financial markets. they started the week well in europe. they have been trading almost for 15 minutes. a big loser is ryanair. no surprise because it announced at the weekend that it has serious issues with staffing, particularly pilots, that they have go live them holiday before the end of the leave year and they have had to cancel multiple flights every day for the next six weeks. yes, it is a mess. it's no secret that the market
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for advertising has changed. mass—market ads on tv, billboards and in newspapers are shrinking and ads, specifically targeted to users via social media and the internet are booming. but how does it work? digital ad spending is set to double in this half of the decade, hitting $335 billion by 2020. firms are increasingly targeting their adverts to the consumers they want to reach. they use the data that we share online whether that's via our shopping history or on social media. experts suggest 90% of all data available was actually created in the last two years alone. wunderman is a company hoping to capitalise on the explosion in digital advertising. the company provides consulting, marketing and analytical services to some of the world's biggest businesses. mel edwards is the chief executive for europe, the middle east and africa for wunderman. good morning, mel. thank you for coming on the show. just explain in
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more detail how wunderman works? yes, so we are a global business. a global network and we very much talk about being a global digital agency. what that actually means is we have 10,000 people across 70 countries and we focus very much on connecting brands with consumers. what that means is we look to find customers, find the right customers for those businesses or brands and look to keep the customers and we do that across the various different digital assets. so through mobile, through web, through e—mail, those types of communications. we talked a the start about data because this is very data driven now. you guys know about us than probably our families in terms of what we want, where we shop, the things that we're looking for. how do you use that data? sure. we have a very strict governance and guidance and rules around how we use that data. so you have to particularly in the uk, you have to
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have someone's permission. you can only hold that data for so long and you can only hold certain amounts of data around that individual. but what is interesting for a businesslike ours, which is why we're growing and doing well at the moment is that we take that data and we fuse that with technology. the technology boom has got blown up in the last two years and we take that data and we take that technology and we pull that together and we deliver releva nt we pull that together and we deliver relevant communications to those individuals. and what's the most interesting bit of data that you wa nt to interesting bit of data that you want to know about me, things like my earning power or things i browse for online? i think it is about understanding the relevance of that of you as an individual to a brand. so for instance, we work with a global sports retailer and what's interesting down to an individual level is what sports products they're level is what sports products they‘ re interested level is what sports products they're interested in. what sports
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celebrities they're interested in. how much value they are? so how much money they would probably spend with that sports retailer and then we can create community kations to that individual that have so much more engagement rather than something that's broad and bland. how is it in your industry in terms of the competition because you are in xharj of one aspect of wunderman which is europe, middle east and africa. in terms of getting those big clients, the big sporting brands or whatever, you must be fighting against lots of other digital agencies in order to win them over? how difficult is it? i would say we are doing well at the moment because the heritage of wunderman has been in data. so i think a lot of other digital agencies focus around technology and creative, but we have that heritage of data. we have been around for over 50 yea rs. of data. we have been around for over 50 years. so what we brought is all of that rich understanding about individuals and bringing it together
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with technology and then laying creatity on top it is having great results. so yes, we compete with other agencies, but we are probably getting our... you have got the edge at the moment. we have got the edge. interesting. mel, we have got to leave it there. but thank you, it was fascinating, thank you. i'm worried about this ai thing in my kitchen. it was a gift for christmas aye just know it is listening to everything i say! it can't listen to what you're saying. where have you putit? what you're saying. where have you put it? i unplugged it and put in a drawer because she is listening. there is no snooping going on in your house. it is in a drawer. 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 of all the day's breaking business news. we'll keep you up—to—date with all the latest details, with insight and analysis from the bbc‘s team of editors right around the world.
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and we want to hear from you, too. get involved on the bbc business live web page, bbc.com/business, on twitter @bbcbusiness and you can find us on facebook at bbc business news. business live on tv and online, whenever you need to know. the bbc‘s dominic 0'connell is with us. give us your take on ryanair? ryanair, they were always a very efficient airline and they grew quickly and were able to organise themselves. this shows they are in organisational disarray if they couldn't calculate their pilots leave entitlement, what confidence does it give you. it is to do with the ryanair workforce. does it give you. it is to do with the rya nair workforce. part does it give you. it is to do with the ryanair workforce. part tv is not zero—hours, but a contractorised
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workforce. it is difficult to control your employees if you don't actually employ them which is what ryanair always claimed. john says i'm flying with them today from athens, i hope. iwould neverfly ryanair if there is a reasonable alternative. good luckjohn. anna says, "i would not have broken ryanair if this news had broken last week." that's the problem. so much unpredictability? what is making people annoyed are people who have holidays booked don't know if their flights are going and ryanair should publish the first list of flights and ryanair is not doing that. i suspect they don't know that themselves. they will need to re—jig themselves. they will need to re—jig the schedules as they go. thank you very much, dominic. stay with us, we will be back tomorrow. we will, the same time, same place. bye—bye. good morning to you on this chilly
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monday morning. we have some sunshine on offer today, but also the potential for some heavy showers. it's feeling cold out there, but the weather warming up as we head towards the middle of the week. do not expect wall to wall sunshine. we have some rain in the forecast. today we have high pressure to the west. low pressure to the east. much of the heavier showers across that area of low pressure and it will be blustery around the showers as well. so today, a lot of dry weather to look forward to. some decent sunshine getting through the cloud as well. much of the heavier showers across eastern parts. further west, a few showers too, but they will be lighter in nature. and by this afternoon a lot of dry weather to look forward to across northern ireland and scotland and with just a few coastal showers. into northern parts of england where we have quite a bit of cloud and sunny spells coming through, a few isolated showers. much of the showers across the higher ground in wales, with sunny spells getting through as well. scattered showers for devon,
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cornwall, southern parts of the british isles. into east anglia we will see some heavy showers later. they could be thundery as well with the temperatures today getting up to 17 celsius and maybe 18 celsius. through tonight, the showers will continue for a time. gradually easing and clearing overnight. the winds will ease as well. underneath the clear skies, we will see some mist and fog patches forming. it will be another chilly night as well with the temperatures in towns and cities ranging between eight to about 12 celsius. tomorrow, we do have a chilly start to our tuesday morning. high pressure is building from the south—west. a much better day tomorrow compared with today. we can look forward to more in the way of sunshine and fewer showers as well. so you would have to be unlucky to catch a shower tomorrow. a lot of dry weather. breezy for coastal areas in the west. plenty of sunshine getting through. perhaps the cloud increasing across northern ireland later on in the day with the temperatures tomorrow ranging between 12 to about 18 celsius. do
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enjoy the sunshine tomorrow. as we head on into wednesday, we will start to see this weather front bringing wind and rain into western parts. further south and east, a lot of dry and bright weather to look forward to, with the temperatures ranging between 13 to 19 celsius, remaining unsettled as we head towards the end of the week. hello, it's monday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. this morning, the live transportation of an is from the uk and across europe, and exclusive investigation for this programme has fun shopping and illegal practices. journey times are very often exceeded and also the loading density, often to many animals on board, very often they are transported in temperatures above 35 degrees, even though this would be forbidden or is forbidden by eu legislation. we'll bring you that full report in about 15 minutes. as police continue to question them
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about the parsons green cube attack, describe —— survivors describe their ordeal. there was a one-off fire, my instinct was just to run.
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