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tv   BBC Business Live  BBC News  November 9, 2017 8:30am-9:01am GMT

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this is business live from bbc news with alice baxter and sally bundock. getting down to business — the leaders of of world's most important economies sign industrial deals worth more than $250 billion. live from london, that's our top story on thursday, november 9th. china's xi jinping and trump shake hands on $250 billion of potential business deals, including a pledge to buy 300 airplanes from us aviation giant boeing valed at $37 billion. also in the programme. the malls chases the fox. could the
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changing global media landscape see zist changing global media landscape see 21st century fox sold to walt disney? will also have the latest market movements. another record—breaking day on wall street. in europea record—breaking day on wall street. in europe a mixed picture. will be getting the inside track on the construction industry and the boss he says the sector need more women. we'll be talking breakfast. tiffany ‘s has got a brand—new offering which will set you back $29 for a coffee and a croissant. we are asking you today, how much have you ever spent on a coffee and croissant? don't hold back, use the hashtag. a warm welcome to you.
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president trump and his chinese counterpart xi jinping have said they would work together to improve trade relations on his visit to beijing. in a departure from his recent rhetoric, the us president said he does "not blame china" for the trade deficit between the two countries. the two leaders signed industrial cooperation deals worth more than $250 billion. and china said it would buy 300 airplanes from us aerospace giant boeing valued over $37 billion. mr xi told reporters that the chinese economy was changing. joining me now from beijing is our correspondent, steve mcdonell. covering every twist and turn of this china leg of the asian tour of
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president trump. alice outlining the fa ct president trump. alice outlining the fact they say they've done deals worth something like $250 billion. a few bits of information is trickling in about general electric proving to bea in about general electric proving to be a winner, as is boeing. absolutely. it's interesting, we just heard about that reference from donald trump where he said he doesn't blame china for the trade imbalance between the two countries. he said that in front of a gathering of business people from china and the us. when he said that there was a bit ofa the us. when he said that there was a bit of a gasp of surprise around the rim. it's obviously a different tone from donald trump on the campaign trail. that was hellfire and brimstone, we are going after china on trade. here he is with xi jinping and they are announcing all these deals. yes, there is talk of them adding up to $250 billion i think. it's going to be something
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we'll have to have a look at overcoming days and weeks. some of them are more in the memorandum of understanding category. not necessarily actual contracts with deliveries of units. and yet other parts of these, some of them do seem to be the real thing. xijinping has said that under donald trump, his administration is ushering in a new spirit, a new time of cooperation between the two. they needed to have something to show this. that's why all these deals have been announced now. you have your" announceable" you've been looking for. in terms of what's going on now, us business bosses wa nt what's going on now, us business bosses want better access to china. some of the big corporate have really struggled to operate and make headway in the chinese mainland
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market, which is worth billions. yes, and xijinping has said today that that is going to happen. he said there will be greater access to china for us companies. the short time ago the foreign ministry said there would be a timetable for some of these things, specific tax breaks for the auto industry and the like. we will see what comes of those announcements. whether or not it's just all talk from xi jinping or whether it's going to open up sections of the chinese economy to foreign investment. of course, people who have tried to invest in china will know there's certain parts of this economy, as a foreign entity you can't just parts of this economy, as a foreign entity you can'tjust buy parts of this economy, as a foreign entity you can't just buy a parts of this economy, as a foreign entity you can'tjust buy a coal or steel mill, there are certain other parts of the economy you can only engage in the chinese economy as a joint partner. for a long time in the west and especially in the us,
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they've been calling for greater access to the chinese market and xi jinping says it's coming. we'll see if it does. will watch this space. thank you. the chairman of 21st century fox, lachlan murdoch, says the media giant is in good shape, despite tough conditions. fox reported better than expected figures for the three months to september. but the real buzz has been about reports it's held talks to sell off a huge swathe of its business, most of its tv and film business, to disney. the likes of netflix, google and amazon are now huge players in the media business, as more of us stream movies and tv rather than watching cable channels. that's led to millions "cutting the cord" with their cable provider — five million americans are expected to axe cable this year, twice as many as last year. disney is launching its own streaming service in 2019 and pulling its first—run movies off netflix. buying fox's studios would give it
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access to much more content. disney and fox also each own around 25% of streaming service hulu, another growing platform for content if there was a deal. still, netflix is a streaming stalwart and boasts 109 million global customers. media analyst richard broughton is here. good morning, richard. sitting in patiently as we read that long intro. it's quite a tale. give us your take on fox. earnings fairly robust but we all want to know what it's going to do next. fox as a business is in pretty good shape. the story is more political and financial i suspect. there are two be components to this for them, one is the ongoing sky saga in the uk. fox controls 39% of pay tv broadcast
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on sky and has been trying to buy the remaining stake. that has been a bit of a regular tory hot potato and there is some suspicion it may not go ahead —— regulatory hot potato. fox may reconsider its strategy of reintegrating businesses and use the cash to do something else. simultaneously there has been some concern over the departure of a key shareholder who controlled about 6% of fox. that doesn't sound like a lot but when you consider the murdochs hold 39% it makes a difference in key votes. we've got james murdoch the son of rupert, trying to get that deal through pass the uk regulatory authorities. and the uk regulatory authorities. and the prince, who sold the 6%, is the
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one who's been imprisoned in saudi arabia. it's a complex family and friends story here. the easy part of the story is why disney might want to buy fox. it's an attractive business and will complement the core disney business with all of the titles and media assets that fox controls. the background is this great change on the media landscape. this move away from cable networks in the states, more on main street streaming. yes, and second quarter this yearfor us streaming. yes, and second quarter this year for us pay—tv was one of the worst on record. people have been shifting to services like netflix, amazon and hulu, but also to this new trend of virtual cable companies. services like sling tv which have a smaller package of channels for a lower cost. thank you
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so channels for a lower cost. thank you so much. there is a lot to discuss there. if we say on that subject, because the top story in our round—up today, the chief executive of at&t has said he never offered to sell cnn and has no intention of doing so. us regulators reviewing a planned $85 billion merger between time warner and at&t. reports have suggested they are demanding a sale of assets such as cnn as a condition for approval. afamiliar a familiar tale. former top executives at yahoo and equifax have apologised at a senate hearing for security breaches that exposed billions of customer accounts. politicians are threatening greater intervention in tech firms' business. talks over the possible sale of the film production company co—founded by harvey weinstein have fallen through, the bbc has learned. the weinstein company had entered into a preliminary deal with us private equity firm colony capital. there's more detail on this story on
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oui’ there's more detail on this story on our website. remember there's more detail on this story on ourwebsite. rememberthe there's more detail on this story on our website. remember the page is a lwa ys our website. remember the page is always updating with the latest business news as it is breaking. 0n days like today when there's a lot of corporate stories around, dig deep into the page. let's look at markets and some choppy trading over in asia where stocks stayed closed to a decade—long peak on thursday following another record—breaking day on wall street. japanese shares ended the day in the red on thursday after dramatic intraday swings took the nikkei and topix indexes to multi—decade highs — with the nikkei breaking the 23,000 level for the first time since january 1992, as financial and securities shares rallied — only to later plunge in the afternoon on profit taking. those swings on equities lead to the the dollar slipping against the yen — investors appetite for risk clearly taking a bit of a dampening.
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meanwhile here in europe stocks have opened slightly down. and we have the details about what's ahead on wall street today. to media giants will be reporting earnings on birthday. first up walt disney. their theme park will be a big driver of growth for the company. but, in the movie department, disney hasn't had any real blockbusters. so that's going to be looked at as a negative. next up to be looked at as a negative. next up the rupert murdoch owned newscorp. analysts are expecting some growth in revenue. but an ongoing decline in demand for print —based advertising is affecting the company's biggest —based advertising is affecting the compa ny‘s biggest source —based advertising is affecting the company's biggest source of revenue. also reporting earnings, equifax. this will be their first earnings report since a massive hack in which the data of 145.5 million americans
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may have been stolen. and finally, a slew of department stores will also be reporting results including macy's, and coles. joining us is jane foley, senior currency strategist, rabobank. good morning. alice, samirtalking about some of the stories in the markets. what caught my attention todayis markets. what caught my attention today is japan, partly because of the aaron wake. japan seems to be creeping higher and higher in the background. if you include september, japan has had the longest spate of recovery since the second world war. you mean share market recovery or economic recovery? the growth of the economy has been growing for more months than before. it had a really strong... in fact
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it's been one of the global success stories of the year, japan. is that slow incremental growth? nothing that headline grabbing. we haven't noticed. but there has been this economic expansion. part of it is related to the yen. the value of the yen is relatively soft and that has obviously helped them. japan is a big exporting nation. china great has been good this year. global growth is quite strong this year which has helped japan. 0il growth is quite strong this year which has helped japan. oil prices have been cheap. they don't have natural resources, they import a lot of their energy particularly since the nuclear crisis. that has helped them too. 0il the nuclear crisis. that has helped them too. oil is creeping up and given them a inflationary boost. thank you. we'll be back to talk thank you. we'll be backtoialk, the thank you. we'll be backtoialk the business papers. no time about the business papers. no time to talk about brexit negotiations because time is ticking. but we are going to be discussing breakfast at tiffa nys! will also be talking about the
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construction industry where b ask one company boss why so few women joined the building profession. you're with business live from bbc news. it's a really busy day for corporate stories. we've heard from the likes of sainsbury‘s and so on. we also wa nt to of sainsbury‘s and so on. we also want to mention this story. regional airline flybe has reported a 47% drop in adjusted pre—tax profit to £81; million. the firm attributed the decrease to a "previously announced one—off onerous it contract provision and the impact of increased aircraft maintenance costs," as well as the drop in sterling. john strickland, aviation consultant, can explain more. that is definitely management—speak. we need him to help us make sense of
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that! what does it mean? they are trying to make it more relevant to the space of the market they operate on. they had some space to try to improve reliability of operation. flybe, many viewers will know, is an important regional carrier in the uk. not so active in london but came back into heathrow earlier this year. importing for southampton, birmingham, manchester, and up in scotland, and they are really not competing with the likes of easyjet and ryanair, but with others. a new management team this year and trying to make progress. in some ways they have been dealing with challenges from the past. a lot of changes for flybe, has in there? yes, and you ceo came in injanuary —— a new ceo came in, with a lot of experience from cityjet came in, with a lot of experience from city jet and came in, with a lot of experience from cityjet and air france and the experienced in the industry. the
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fleet they have got is actually too big for thejob fleet they have got is actually too big for the job and they have many new aircraft previous management had ordered some years back and they are trying to digester that and indeed get rid of some of those aircraft. they have had to sell almost at any price to sell the seats inherited and rss are getting much better grip in terms of prices. the revenue story today is very positive. we have seen story today is very positive. we have seen revenues story today is very positive. we have seen revenues rising. will have to leave it there, john strickland, thank you very much. let's mention sainsbury‘s. profits falling by 9%, £251 million, that is the 28 weeks until the 20th of september. the boss of sainsbury‘s has been talking to bbc breakfast and you can read more about him on our website. —— until the 28thth of september. you're watching business live — our top story:
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getting down to business — the leaders of the world's biggest economies shake hands on some $250 billion worth of deals. a quick look at how markets are faring. following a bumper session in asia you can see flat to down in london, burberry shares down quite a bit on the back of their earnings as well, as you can see. now, let's get the inside track on the construction industry — and the particular challenges faced by high security projects. gilbert—ash is a firm based in northern ireland and london, with more than 180 staff. it specialises in construction and renovation work, and has delivered british, us and polish embassies in dozens of countries. joining us now in the studio is the boss of that company, ray
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hutchinson, the managing director of gilbert—ash. thanks for joining hutchinson, the managing director of gilbert—ash. thanks forjoining us. good morning. looking at your company ina good morning. looking at your company in a bit more detail is actually quite fascinating, to see what you do, building embassies all over the world, in very challenging environments in some cases. indeed, thatis environments in some cases. indeed, that is right. we are very proud of our record thus far and what we have done around the world, we have worked in 43 countries around the world, and as you say each of those countries is very unique and challenging in its own particular way. what we bring is a very proactive approach to that, and i think one of the most important things from our perspective is the fa ct we things from our perspective is the fact we immerse ourselves in the country of each of the country's —— in the culture of each of the countries we work on, and we embrace the people locally and embrace the culture and i think that benefits eve ryo ne culture and i think that benefits everyone and is why we have been so successful so far. one of those challenging environments was nepal after the earthquake. her challenging was that? very challenging. in 2015 the earthquake sadly killed 9000 people and in the
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immediate aftermath of many organisations look to strengthen their buildings and commonwealth office strengthening a number of their embassy buildings, so that was hugely challenging. that must be difficult in a place like nepal which is incredibly poor, and i know since that earthquake they still have so many infrastructure challenges. they have not got the money to fund fantastically strong buildings, get you are in the middle of all of that was lots of money from the uk government to build a very robust building for british ambassadors? yes, but the important thing from our perspective is it is not just a simple thing from our perspective is it is notjust a simple case of us showing the people in the countries and the places in which we work how to do things, but we learn from that as well. it is sharing ideas and practices. in nepalfor well. it is sharing ideas and practices. in nepal for example well. it is sharing ideas and practices. in nepalfor example we used a lot of the local workforce, we employed a lot of local companies, so they have benefited as a result of us being there are every bit as much as we have done so by
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being there. something else you push is gender equality. you have 50% of the workforce female, incredible? is gender equality. you have 50% of the workforce female, incredible ?m is remarkable, and i think nepal had suffered a lot because many of the local construction force had left to work in the middle east, and in the immediate aftermath of the earthquake there were huge labour shortages and they address that by employing more women into the construction industry. as you say, we had 50—50 male and female balance. remarkable. and that is not just in nepal but something you are trying to push throughout your project? indeed. certainly from our perspective it is very high on our agenda, the diversity. 0ur organisation, other 21% of our workforce is female, which might not seem particularly high, but relative to the sector, it is about 11% female, so we are very good in respect of that and it is something we are continuing to try to promote, to get more females in the
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construction. you are a company based in northern ireland and here in london. tel us about brexit, because it is impacting the construction industry generally speaking ina construction industry generally speaking in a massive way and will do in the future. what impact will it have in your country given that you work all over the world and not just in northern ireland and the uk? we are planning a number of things the minute. like any business there is an uncertainty around it but we are trying our best from our perspective to try as blessed we can for every contingency that might come around. there are a number of areas we are conscious of, for example migration, very important from our perspective —— we are trying our best to prepare for every contingency that might come up. many of our products are from the uk so we need to make sure imports are friendly. and many company bosses listening to you are saying, yes, we need that as well! ray hutchinson, thank you for coming in. good to
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have you on the programme. thank you. 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 with all of 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. and we want to hear from you too — get involved on the bbc business live web page at bbc.com/business, on twitter we're @bbcbusiness, and you can find us on facebook at bbc business news. business live, on tv and online — whenever you need to know. what other business stories has the media been taking an interest in today? jane foley is joining us again to discuss. good morning. good morning. iam feverishly typing here! you carry
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on! reading vulgar, what i do with my time! we asked viewers to tweak in about the most expensive brea kfast in about the most expensive breakfast they had ever had. as reported, from friday in new york at tiffa ny‘s reported, from friday in new york at tiffany's you reported, from friday in new york at tiffa ny‘s you can reported, from friday in new york at tiffany's you can now buy a copy for $29 —— a coffee. justin has had a rubbish hamburger in dubai airport, not very good. is that breakfast, hamburger? for me it is airports, you know you were to eat because you won't get any food on the aeroplane, and you reluctantly have to part with too much money for a very small brea kfast. with too much money for a very small breakfast. would you like to have brea kfast breakfast. would you like to have breakfast at tiffany's? $29 is a little pricey for me. it would have to bea little pricey for me. it would have to be a birthday or some kind of celebration. it is quite
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interesting, in vogue, perhaps a representation of the audience, because they see tiffany's is going towards a younger audience. $29? it does not sound that affordable to me, for coffee. and doubling female members on their walls... yes, the ftse 100, members on their walls... yes, the ftse100, the figures members on their walls... yes, the ftse 100, the figures on women, progress, but still work to be done. we will be saying that for a while but still time to make progress. going in the right direction. thank you for your time today. and thank you, too, for your company. i imagine people tucking into their coffee and cry song as they watch. we will do that right now! see you soon. thanks for watching —— there coffee and croissant. good morning. a cloudy start
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throughout england and wales. patchy rainfor throughout england and wales. patchy rain for some of us and you can see where that cloud is across england and wales. further north, a fine start to the day, some sunshine here and that could last into the afternoon. but elsewhere we will see that cloud starting to disappear, the rain and drizzle also clearing, but it might take a while to clear away from the far south and east, but for the afternoon across scotla nd but for the afternoon across scotland and northern ireland it is looking fine, a few showers affecting the far north and temperatures here about 10—8dc. showers developing here and a little sunshine as well in the south—west of england but towards the south—east it will remain quite cloudy, even into the afternoon. the rain should have cleared by this stage but staying quite cool and cloudy, temperatures in london about ten or 11 celsius. through this evening and tonight, more cloud and
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some rain coming in through scotland and northern ireland, moving further south. with all this cloud around it should be a frost free night. the lowest temperatures across scotland we re lowest temperatures across scotland were there could be a touch of frost in the glens, temperatures typically staying above freezing. through friday, quite a breezy day. like this morning, quite a bit of cloud around, but that breeze will chase it away to the south and some sunshine developing. a few showers coming into northern england, particularly the north—west, and scotla nd particularly the north—west, and scotland as well. cloud increasing a touch in northern ireland but for many of us a dry day with some sunshine. through friday evening in the saturday, this little area of low pressure will move west to east through friday night, giving a spell of rain, but gradually it will clear away to the south and behind it, we will see pockets of cold air, moving south for the weekend, so many of us will feel a chill through both
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saturday and sunday. this is how saturday and sunday. this is how saturday is looking. some showers towards western and eastern coasts, but otherwise a dry day for most of us, feeling quite chilly particularly down the eastern side, the temperatures 7—9 degrees, and a similar feel on remembrance sunday. showers in coastal areas and temperatures up to about eight, 10 celsius. more on the website, as always. that's all from me. bye—bye. hello, it's thursday, it's 9 o'clock. i'm victoria derbyshire, welcome to the programme. as theresa may loses her second minister in a week, her opponents claim her government is in chaos. priti patel resigned as international development secretary last night after all those unauthorised meetings with israeli politicians. the prime minister's colleagues say
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that mrs may has it under control. theresa may is in full charge of this cabinet, and i have no doubt at all her appointment today will reflect the nature of that, and we'll be able to get on with our business. as theresa may works on another reshuffle of her top team, do you think she can withstand this latest crisis? could virtual reality be used to treat mental health conditions? tests are under way to see whether vr can heal our minds and help conquer anxieties like fear of heights. after that session i did go out and put myself into some positions
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