tv BBC Business Live BBC News September 27, 2017 8:30am-9:01am BST
this is business live from bbc news with alice baxter and sally bundock. not such "plane" sailing — bombardier gets hit with major us tariffs in its trade dispute with boeing. live from london, that's our top story on wednesday, 27th september. thousands ofjobs in the uk and canada are left hanging in the balance as the us proposes a 220% tariff on bombardier planes. also in the programme, keeping the french economy moving. emmanuel macron‘s government lay out it's first ever budget. we'll bring you up to speed with all the latest from the markets. shares mostly on the rise on wednesday and the dollar hovering
near one—month high. also in the programme, we'll be getting the inside track on an app that promises to tell you all you need to know about buildings. plus twitter doubles it's tweet length to 280 characters, so we are asking you today what's your social network of choice and why? just use the hashtag bbcbizlive. hello and welcome to business live. thousands of aerospace jobs in the uk and canada could be at risk after the us department of commerce ruled against bombardier in a dispute with boeing. an interim tariff of 220% has been proposed on the import of bombardier‘s c—series jet to the us. boeing had complained that bombardier got unfair state subsidies from the uk and canada, helping it win a major order. the ruling relates to a $5.6 billion
transaction us airline delta made last year for up to 125 of bombardier‘s c—series passenger jets, a rival to boeing's own 737 jet. bombardier, is one of northern ireland's biggest employers, with over 4,000 people in the country on the payroll. they have called the ruling "absurd". and tweeting within the last half an hour the uk prime minister theresa may has said that she is bitterly disappointed by initial ruling and she will continue to work with bombardier to protect vital jobs for northern ireland. our business editor simonjack is in belfast. simon, what more can you tell us about this? well, people here in belfast were braced for bad news on this one. there was a general a cce pta nce this one. there was a general acceptance that they might not get what they wanted, but this is worse.
220% tariffs slapped on every plane sold into the united states which is the world's biggest aviation market. that could if upheld and followed through with, kill demand for this plane, this c—series which is integral to bombardier‘s future in the aerospace industry and it is the plant here in belfast, belfast is its largest employer and des signed around the success of this aeroplane, 25% of the workforce work on the wings, that's due to rise to over 50% over four years. a on the wings, that's due to rise to over 50% overfour years. a real threat to this if upheld. it is a preliminary ruling. we will get another one in february, early next year, when we will look at the question of how much harm boeing actually suffered as a result of this contract. now that's going to be interesting because boeing didn't enter the tender, didn't tender for this contract so it will be hard for them to say they have got any harm. the fact they are pursuing it so
aggressively has some saying what boeing is doing is trying to strangle this programme, this aerospace programme at birth so that it doesn't give a lift to bombardier and have it competing in other areas of the aerospace. the last thing boeing wants is another airbus on its hands and they have been at loggerheads with them for over 15 yea rs. loggerheads with them for over 15 years. boeing is winning the legal arguments so we will see, at the moment it is first blood in this dispute to boeing. we will get another ruling in february, but it does cast a shadow over the c—series programme and to 4200 jobs in belfast. explain for our viewers around the world why it is important to the uk and in particular prime minister theresa may? given the outcome of the last election? well, that's interesting because there is a real political dimension to this. the bombardierfactory a real political dimension to this. the bombardier factory in a real political dimension to this. the bombardierfactory in belfast a real political dimension to this. the bombardier factory in belfast is ina dup, the bombardier factory in belfast is in a dup, democratic unionist party, and theresa may relies on the dup, the ten mps of them, for her slender parliamentary majority so she will
be keen, if it matters to the dup, it matters to the conservative prime minister. she raised it with donald trump we know the business secretary from the uk has been visiting boeing. usually they do it behind closed doors, but they know a lot of people are watching, how hard the uk government is fighting for northern irish jobs, government is fighting for northern irishjobs, but government is fighting for northern irish jobs, but these are not straightforward disputes. for example, boeing says that it employs 16500 people in its supply chain in the uk. so it is not a street shoot—out between us and northern ireland jobs on one side and us jobs on the other. these are complicated disputes and thenned to last a long time. they do. we know only too well. simonjack time. they do. we know only too well. simon jack in time. they do. we know only too well. simonjack in belfast. let's take a look at some of the other stories making the news. uber is due to appeal an important decision about how it operates in the uk later today. the company is expected to tell an employment tribunal its drivers should be treated as if they are running their own businesses. if an earlier decision is upheld drivers will be entitled to benefits
such as paid holidays and the minimum wage. twitter has launched a trial of longer messages which it says will help users more "easily express themselves". the limit for a message has been 140 characters but has now been doubled for some users. twitter may be hoping it leads to increases in engagement as it struggles to grow user numbers and narrow its losses. easyjet is backing plans to develop commercial passenger planes powered by electric batteries. the airline wants the proposed aircraft to fly passengers on short—haul routes possibly within the next 10 to 20 years. the prototype will be developed by a us firm called wright electric which has already built a two—seat battery powered plane. french president emmanuel macron‘s government will deliver its first annual budget today. as a former economy minister to
former president francois hollande, his economic credentials formed a big part of his campaign. however he still has a big task on his hands. let's go live to paris for more on this story. we are joined by thomas. give us your take on what might be in this budget. well, the budget is really a follow—up to emmanuel macron‘s campaign promises. there are no surprises here. perhaps the novelty is that what they're plan to go do is to extend the budget planning for the five consecutive yea rs planning for the five consecutive years and basically how i wool summarise it, there is no surprises, there is a lot of smoothing and tax cuts and there are also some budget
cuts. the idea is to slowly go, reduce the deficit if, of course, the economy permits. we've already seen emmanuel macron push through the controversial labour reforms that you've mentioned. a previous guest that sally was talking to suggested that the budget that we're going to hear today, much more important than those reforms. is in the moment that we're those reforms. is in the moment that we' re really those reforms. is in the moment that we're really going to see emmanuel macron stamp his presence? well, the labour reforms that were just passed, a small part of the entire package that the bunch of reforms thatis package that the bunch of reforms that is going to be implemented. the budget and for example the tax twea ks, budget and for example the tax tweaks, the budget tweaks are an important part of it. for example, lowering the taxes on labour and increase in income tax which will reshuffle the tax burden, but it
will make employment much more, it is going to be much easier to hire and it's going to be, you're going to see some purchasing power for workers in the private sector. there is also another tweak which is quite important. the wealth tax is going to be refurbished. we're going to see that it's going to become a tax on immobile capital and this is in the hope of stimulating investment into the french economy. thank you forjoining us once again on bbc world news. thank you very much. let's look at markets now and most asian shares edged up on wednesday but us—north korea tensions are stilljangling nerves and keeping investors were from buying with any gusto. in tokyo the bell weather nikkei slipped with traders staying on the sidelines ahead of some key
events including the unveiling of donald trump's tax reforms and the release of japanese economic data later in the week. 0n the currency markets the dollar is hovering near one—month highs on growing expectations of a us interest rate increase in december. and the yield on two—year treasury notes which rises with traders expectations of higher rates, touched levels not seen since october 2008. meanwhile here in europe, shares are also on the rise. and samira has the details about what's ahead on wall street today. now that the republican senate's efforts to overhaul the us healthcare system seems to have failed for this year, the attention of washington and wall street turns to the next priority — tax. the republicans want to use their control of both the white house and congress to rewrite the us‘s notoriously complex tax code. amongst other things they plan to lower is the corporate tax rate. wall street certainly likes the sound of that.
president trump will make a big speech outlining the republican plan on wednesday evening. and it won't be long on detail, but should bring the subject to the top of the agenda. also on wednesday, pending home sales data and earnings from the big agriculturalfirm cargill will likely be in the news. joining us is tom stevenson, investment director at fidelity international. nice to see you tom. what are you watching on markets? alice mentioning what's going on right now. samira on wall street. we heard about the potential for tax reforms in the us. that's a really important feature. if you look at the us stock market, there is divergence between the market and the level of corporate earnings. the stock market is getting pricey compared to the profits, perhaps a bit frothy and what the market really needs to see is it needs to see the earnings keep
coming through and a key part of that are the tax reforms. if we get the tax cuts, if we get the ability to repatriate the profits which have been held overseas by american companies, that could be the impetus for a continuation of rising profits. really important if the stock market is going to maintain its value. particularly within the us markets, tom, we were talking about this rotation that you've noticed over the past month away from tech stocks and more towards energy. it has been a really interesting month for the year as a whole, technology has driven the us market and we have seen this before in bull markets driven by technology and it can be worrying when you get the narrowing of focus because it often happens at the top of a market that the market focuses on just one sector, it is encouraging that what we have seen is technology stocks coming offa we have seen is technology stocks coming off a bit and energy stock coming off a bit and energy stock coming into favour. it is suggesting that investors are looking for where the value is and notjust chasing the value is and notjust chasing the hot story. add to that
excitement we had janet yelland speaking in cleveland. every word she said was analysed and most believe a december rate rise is a given? one of the key jobs of the central bank is to guide expectations about where interest rates are going. the federal reserve says it will raise rates more than the market expects and i think what janet yelland is doing is trying to persuade the market that maybe they need to up their xpations a bit. are you a 140 or 240 club member? i'm not in the club! my nose is pressed against the window! nobody, apart from mike, one of our followers against the window! nobody, apart from mike, one of ourfollowers is in the club! tom will be back. we will talk about that later. the tweets are flooding in, most of them 140 characters. we will talk about that later. building an app that allows you to work out who is behind a building's
design, design. yes, we're going to hear from the woman who had the brainchild of that in a moment. yes, you're with business live from bbc news. i have got a real sweet tooth. have you got one? i have one. especially in the morning. partly because you need an energy rush. at the end of this week restrictions on sugar produced across the eu will be lifted. we consume nearly two million tonnes of sugar in the uk every year. what will these changes mean for the industry? sean farrington is at a sugar processing plant in newark. so at the end of this week there's going to be big rule changes that will have quite a big influence on what happens at factories like these that make sugar from sugar beet we grow here in the uk. at the moment, there are big restrictions across the european union on what people can grow and how much they get for it.
but that's all out the window come saturday. we're going to have a chat now to jane. jane, you're a beet farmer, you grow these. what is it about this plant that means we can grow so many in the uk? well, i suppose we've got an awful lot of experience and expertise as british farmers, and we've got very favourable climate conditions and soil conditions. and that works pretty well, but carlos is also with us. carlos, you keep an eye on the prices of a lot of commodities. when it comes to it being a free—for—all on saturday, people can grow and sell as much as they want. how much of an effect will that have on price? well, there won't be a price effect just next week. we knew this was coming for quite a while. the eu has been planning this change for many years. so no immediate effect, however production in different countries, to produce beet in the uk, in europe, have been increasing production, and we are looking at a record crop in the eu, not a record but abundant crop. so we expect there has been a race on price,
pressure on the european price is trending towards the international price. still quite a bit of a difference, but there may be more of a correlation going forward. carlos, thank you very much. jane, thank you very much. it will be interesting to see how much changes they will make come saturday. that was sean earlier. and sticking with the sweet theme, this story caught our eye on the business website earlier. profits at hotel chocolat have more than doubled. it would seem hotel chocolat coming in with some decent earnings this time around. you're watching business live. our top story: the us commerce department has ruled
against canadian aerospace company bombardier in a trade dispute with its american rival boeing. the ruling means bombardier will be charged a 220% import tax on select planes coming in to the united states. a lot more on that story on our website, so if you want to know the latest, any news aboutjob cuts and so on, we will update you. a quick look at how markets are faring. they are taking their cue from asia, all the major markets barbini k were up, a similartrend. all the major markets barbini k were up, a similar trend. —— all the major markets barbini k were up, a similartrend. —— barthe nikkei. have you ever been wowed by a building and wondered who exactly was behind its design? well, there's an app for that — it's called built id. it allows you to use your phone to look up the building and find out who the architects were, who the design team were and even who built it.
so far built id has amassed over 19,000 developments listings across 110 countries. savannah de savary is the founder and chief executive of built id. welcome, thank you for coming in. tell us why you started this.|j started tell us why you started this.” started built id because in real estate who you know still dictates what you know, so i was working for property developer in new york and we needed to know what sort of interiors appealed to hot tech start—ups like google and amazon, because we wanted to attract them to our buildings. finding that inspiration and then finding out who was behind it was incredibly difficult, because i rarely i needed a rolodex of contacts to reach out to, and even if you have spent
decades curating such a network, you're still having to call up somebody at a company and he reaches out to his network and asks them, it is frustratingly time—consuming. out to his network and asks them, it is frustratingly time-consuming. so it is very people based, the property sector still not very tech savvy, largely? property sector still not very tech sawy, largely? the property sector is one of the last hit the digital revolution, and it is finally happening and investments are going up happening and investments are going up dramatically this year over last year, there has been huge investment in companies. so you are saving users time, basically, i'm too, and providing them with fantastic information. how are you monetising this? it is free to be on there, similarto this? it is free to be on there, similar to linkedin. we have around 600 architects and engineers doing this currently. the more that do it, the more value that drives our database, which the more value that drives our data base, which is the more value that drives our database, which is what you can pay to have access to to be able to find out instantly who is behind a project and collaborate with your collea g u es project and collaborate with your colleagues and clients on project inspiration. so you are not looking
to make money at the moment? the focus is on building the most valuable data base we focus is on building the most valuable database we can and expanding globally. so who is going to be using this? built id is a matchmaker between anyone doing a real estate project, so that could bea real estate project, so that could be a hotel, restaurant, someone doing their office headquarters, or a property developer, and on the other side of professionals who are the right fit. that's from the architects and engineers to the lighting designers or the vertical transportation consultant. and how have you found this journey? was a difficult, are there obstacles? there were definitely obstacles. firstly, finding out who is buying project is incredibly difficult.” would imagine that that information is quite tightly held? absolutely, it takes a shift in mindset that luckily we are seeing for property developers to say, i might not necessarily want everyone to know who my interior designers are, but i really wa nt who my interior designers are, but i really want to know who everyone else's is, so there has to be some
give with the poll, and especially for emerging designers and talent, to see your work alongside the leaders of the industry, it is is a lot easier to get that information because everyone wants to take part. and in terms of funding and getting support, was that difficult?” and in terms of funding and getting support, was that difficult? i am very lucky, we have some great investors, we have one of the secret millionaires, people who said i may not understand the tech that goes into this, but i could have used this for the past 30 years, so i get it, it would have saved me time, i don't need to know how it works exactly, so we are very lucky there, although soon we will have to be starting our next fundraiser, so we will see. still only 26, so much time at head! savannah de savary, founder of built id, thank you for coming on. thank you very much. so many of you have been in touch today about
twitter. here is how to stay in touch with us, we will keep you up—to—date with us, we will keep you up—to—date with all latest details with insight and analysis from the bbc‘s editors from around the world, and we want to hear from you. from around the world, and we want to hearfrom you. get from around the world, and we want to hear from you. get involved from around the world, and we want to hearfrom you. get involved on the bbc business live web page. you can find us on twitter and facebook. business live on tv and online, whenever you need to know. let's get stuck in, thomas bach. tell us more about the twitter trial, more than 140 characters for some? this has a lwa ys 140 characters for some? this has always been a limitation of twitter, and it was a technical limitation to start with because it was to do with how many characters you could text. that is no longer a limitation, but it isa that is no longer a limitation, but it is a limitation for twitter, because people find it frustrating that they don't have the room. so
they have expanded it to 280 characters. for some languages, they have expanded it to 280 characters. forsome languages, if you are tweeting injapanese, chinese, the characters convey a lot more thanjust chinese, the characters convey a lot more than just a single letter in english, so this expansion is only going to apply to languages outside china and japan. which is one of the main reasons twitter has given the doing this, we have had loads of responses on twitter, people getting in touch. jackie saying i love twitter, it forces you to stick to the point and cut the waffle. this user says, i enjoy the challenge of writing what i want to say and then going through my words again and getting them to 140 spot on. so people seem to like the constraint. and earlier on someone had done a fantastic bit of editing onjack dorsey's tweet announcing it. he announced it in a tweet that was 280 characters, and someone has done an editjob on it down to 140, and it was much clearer! we have retreated
that, so if you follow us, you can see that. leo says, it is mine but one app, i command twitterfor adding more characters, but we all use it, but what about the younger generations? i use it, it is a great way to keep up with what is going on, but! way to keep up with what is going on, but i know that my children don't use it. as far as they are concerned, it is something that all quys concerned, it is something that all guys like i use. and that is a problem for twitter, one of the reasons they are struggling to grow their user base and reduce their losses. one of the top trending hashtag is today is saudi arabia women can drive. fantastic. an amazing story. saudi arabia is the only country in the world which has these limitations on women. it is pa rt these limitations on women. it is part of a much bigger transformation in saudi arabia, this thing called vision 2013, an acknowledgement that they need to modernise their economy, with the oil price as low as it is, they have to change the economy and the best way to do that
is to bring women into the workforce. there is another thing as well, apparently there are 800,000 imported drivers in saudi arabia just to drive the women around. it is insane. and the impact of this on the taxi companies out there on the fa ct the taxi companies out there on the fact that men no longer will have to leave work during their lunch breaks to collect kids from school and so on. the knock—on effects of this will be huge. it is a social transformation in saudi arabia but the big economic transformation as well, and it is happening really quickly. women are being encouraged into topjobs, being encouraged take pa rt into topjobs, being encouraged take part in sports, they can sit in the national stadium that they weren't before, big changes. it has been great to have you with us this morning, thank you for being here. thank you for your company, we are both back tomorrow. we will see you then. goodbye. good morning. we have something of
an east—west split across the uk today. many eastern areas, quite cloudy, misty and mcguinness money, things will brighten up into the afternoon but we will see the rain spreading in, and that is courtesy of this low pressure. the white lines becoming more squeezed across the western areas, turning quite windy across western parts as well. the rain quickly moving its way into northern ireland is mourning into west wales and the south—west of england. all square after the mist and a bit of patchy mist and fog this morning, that will clear away and there will be good sunny spells across many eastern areas of england. feeling quite warm again, temperatures up to 21 or 22 celsius in the capital. you can see the rain across cornwall into devon, through much of wales, blustery conditions as well, but by this stage in the afternoon, much of northern england
could remain dry, most of scotland staying dry by this stage as well. good sunshine, particularly in the north where it will feel quite warm. thicker cloud into the west of scotland, and a wet afternoon with rain at times. through this evening and tonight, that rain will continue to march its way through eastwards. they could be a tricky lunch —— rush hour many of us. clearer skies across western areas turning just that little bit chilly. through thursday morning, quite cloudy and down initially across the east, and while the rain may persist across the far north—east, elsewhere you notice on thursday it is looking like a notice on thursday it is looking likea dry notice on thursday it is looking like a dry day and there will be some good sunshine, cloud towards the south—east, but maximum temperature is still pretty good for the time of year, up to about 18-21d. go the time of year, up to about 18—21d. go through thursday night into friday, repeating the performance, you have this area of low pressure, and that is going to bring in more rain as we go through
friday. that will be quite heavy as it moves its way into western areas and across scotland, by the end of the day, that will have reached the far south—east of england. behind it there will be some brighter skies and one or two showers, turning pressure towards the west as well. into the weekend, saturday, sunshine and showers, sunday, keeping a close eye on this, still some uncertainty but it is likely to turn quite wet and windy. more details on the website, but that is it from me, goodbye. hello, it's wednesday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. our top story today, theresa may says she's bitterly disappointed by an american decision to charge one of northern ireland's biggest employers — the aerospace company, bombardier — huge taxes on its exports to the us. it threatens the jobs of 4,000 people in northern ireland. also on the programme, the ban on women driving in saudi arabia has been lifted. i'm so, so happy. i'm out of words.
i'm so, so happy. i'm out of words. i'm in shock and happy at the same time. it's a big dealfor all of saudi women and it's a celebration indeed. but women are still banned from doing all sorts of things without the express permission from a male guardian. we'll look at life for women in the country. and — they were living dream — buying a second home, in some cases, a retirement home in france. but we've learned that many brits who bought into a french property