tv BBC Business Live BBC News September 25, 2017 8:30am-9:00am BST
this is business live from bbc news with sally bundock and jamie robertson. merkel‘s on top but uncertainty looms. the german election results are in, but could europe's biggest economy now lack direction? live from london, that's our top story. europe's biggest economy looks set for months of uncertainty as angela merkel sees her vote share fall and coalition talks loom. also in the programme... going down under to reach for the stars. australia launches its own space agency. markets in europe are down slightly
with the political uncertainty in europe behind us, or is it? we'll be talking you the latest. and we'll be discussing a topic that pulls on the heart strings — literally. the co—founder of a biotech company that grows human hearts will bejoining us live. elsewhere, as 700,000 people sign a petition opposing the decision to ban uber in london. we want to know, would you want to use the service even after tfl said they were not fit and proper to hold a licence for the city. hello and welcome to business live. do get in touch about uber, about space, beating hearts let's start with the outcome of the elections in germany first. germany's elections have delivered a 4th term in office for chancellor angela merkel. but the outcome is one that most economies dread — uncertainty. and that's because,
despite coming out on top, support for both mrs merkel‘s conservative cdu party and her coalition partners, the social democrats, has fallen. it all means europe's largest economy could face months of painful coalition negotiations and that has led the euro to fall in asian trading. but the economic picture going into the election was pretty healthy. the latest figures show annualised economic growth ofjust over 2%, that's after the 0.6% expansion in the three months to the end ofjune. and despite the huge influx of migrants which are thought to have cost mrs merkel votes unemployment in august was 5.7%, well below the eurozone average and also germany's lowest since the berlin wall fell in 1989. and the public finances are in decent health too. the national debt fell nearly 3% in the first half of this
year tojust under 71 and a half billion dollars. that does give mrs merkel some wiggle room in that she can afford to offer potential coalition partners some of the policies they want in order to support her. but that will have to be balanced with the financial needs of an ageing population, wealth inequality and decreased social mobility. that's something mrs merkel recognised in her victory speech. professor marcel fratzscher president of the think tank diw berlin. hejoins us now. one of the he joins us now. one of the things that angela merkel will have to give away on, from the point of view of her economic policy? what are the things? she certainly is weakened. she will go into herfourth things? she certainly is weakened. she will go into her fourth term wea ker she will go into her fourth term weaker than before. she will have to deal with two junior coalition partners which will make it located.
the liberals want very heavy tax cuts of 30 billion. basically raising the entire surplus that the government has. the green party, on the other hand, will very much against the automobile sector for terminating the combustion engine and wanting to move to renewable energies. they have very different interests also on foreign policy. but my main worry is that it will mean germany will turn more in woods in the coming four years. when you say turn inwards, what sort of things will be sacrificed, do you think? what was striking in the election debate was that europe and brexit did not come up at all for it was a non—issue in the election campaign. with the right party gaining votes and the left party gaining votes and the left party gaining votes, it means the new government will try to address the social discontent within the
country. that means it will take less responsibility on europe. the president in france has wanted the german government to take on more responsibility in europe, reforming the single market and the monetary union. i see the chances of that much slimmer. the liberals have been rather critical of europe. brexit will move down the priority ladder even further. don't expect the german government to make this top rarity in the next four years. you talked about tax and environmental policies. do you think angela merkel will give ground on those things? yes, absolutely the feeling in germany is we are the superstar, our economy is booming and the labour market is grateful that narrows the time to get hand—outs to raise pensions and possibly the pension age and cut taxes heavily. the
parity will not be investment into future priorities like education, infrastructure and innovation. that will really fall behind. the priority will be to read distribute the surpluses through tax cuts and pension increases. thank you very much. let's take a look at some of the other stories making the news. more than 700,000 people have signed a petition calling for the ride hailing app uber not to lose its licence in london. meanwhile london's mayor has told the bbc it's difficult to see how discussions with uber can be held at all given its stance over threatened legal action. authorities have said its licence to operate would not be renewed because of concerns about "public safety and security". remember get in touch with us. that is our twitter question today. the us has expanded its controversial travel ban to include visitors from north korea, venezuela and chad. president trump says his top priority is making america safe. it's the third update on a ban that has triggered fierce legal battles over immigration and discrimination.
for the first time the list includes countries that are not majority—muslim. airlines are due to receive their first batch ofjet fuel through the main pipeline to auckland airport since it was damaged earlier this month. two million litres will be transferred over the next few hours — ending a 10—day shortage. most flights have returned to normal after a week or disruptions due to the burst pipe. the australian government has announced that australia is to create a national space agency to grow its space industry. it's one of the only developed nations without its own space agency. hywel griffith is in sydney. is this to do with politics, economic scholar finance, or just prestige? a little bit of all the above and maybe jealousy as well. many are paranoid that australia
will be left behind in the international space race. new zealand launched its own space agency 18 months ago. earlier this year there was a commercial test launch. the new space race is not so about countries going out but paying passengers and the launch of nano satellites which have brought the cost down for lots of companies. there are companies in australia making that technology for that there is a rocket range in south australia which can be used. the idea that the space agency can bring all of that together and give it some direction. australia would not have to depend on other countries. 0ther other stories coming out of asia today, everyone is expecting an announcement today from the office of the prime minister that he will be calling a snap election injapan. some are saying the announcement is
coming in the next couple of hours we we re coming in the next couple of hours we were let you know as soon as we hear anything. that lifted markets injapan. we had the yen failing a little bit. just to say that, of course, that is a situation he feels he will do well and because the opposition in japan is he will do well and because the opposition injapan is in disarray. people do feel he is handling the situation with north korea quite well. we will see how things turn out. snap elections do not always go your way. looking at the markets, the us on friday. in hong kong we saw some weakness. markets in asia in general all down because of concern about north korea injapan. let's look at europe really quickly. we will talk some more about europe in detail with our markets guest. they are all down at the moment. germany knocked down by very much for that lets have a look at wall street and michelle has the details.
the third round of talks are under way in canada. they are expected to go on for several days. the first rounds of talks between us, canada and mexico focused on the language of the trade deal now negotiators are expected to move on to tricky issues. 0utlining america's negotiating priorities ahead of the meeting in ottawa, the us commerce secretary said, the point of a free trade agreement is to advantage those within the agreement, not to help outsiders. there are four more rounds of renegotiations after this one deadline to try to get a deal done by the end of the year. that is ahead of next summer's presidential elections and midterms in the united states. looking ahead, the economic calendar is liked this madiba picks up calendar is liked this madiba picks up later in the week. a similar story for company earnings. joining us is david bloom, global head fx strategy, hsbc.
it isa it is a really interesting situation. we have been talking about uncertainty around germany thought you feel we are coming very much to the end of a period of real political uncertainty right around the globe, aren't big restaurant we we re the globe, aren't big restaurant we were worried about the dutch elections, the big elections with marine le pen and emmanuel macron. the german election was exactly what we thought, angela merkel would win of serif” " onto? agisi é