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tv   Business Briefing  BBC News  September 20, 2018 5:30am-5:46am BST

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this is the business briefing with me, sally bundock. can't get the staff? employers fear brexit could mean personnel problems as the uk rethinks its migration policy. plus, collateral damage. alibaba billionaire jack ma takes back his promise to create a million us jobs as the trade war escalates. we have the latest from the world economic forum in tianjin. and on the markets, asian shares are rising after a second day of gains for global stocks as investor concern eases over the impact of the us—china trade war. we start with brexit. as you've been hearing, uk prime minister theresa may is at a summit in salzburg austria —
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trying to sell her plan for britain's future relationship with the eu when it leaves in six months time. many employers are becoming increasingly worried about their ability to recruit the right staff, once britain is no longer part of the eu's freedom of movement rules. 139,000 eu citizens left the uk last year in the wake of the brexit vote, the highest number in a decade. that has left employers in some sectors, especially hospitality, health and agriculture struggling to recruit staff. at the lower skilled end of the market, the number of people applying for each vacancy has fallen from 2a to 20 over the past year, according to a recent survey. companies are having to raise wages to attract workers. the uk government's migration advisory committee is recommending a more global approach to migration after brexit. it would favour higher skilled,
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higher earning migrants from around the world. that could cause a major problem for some industries like agriculture, where 99% of seasonal workers come from eu countries. it could also mean lifting the limit on so—called tier 2 visas for highly skilled workers from outside the eu. currently just over 20,000 a year are granted on a system of points based on things like education. arnaldo abruzzini is chief executive of eurochambres, a network of european chambers of commerce representing around 20 million european businesses. that shortage of workers is exactly what they were wanting. some argued the labour market in the uk and in other parts of europe has been flooded with workers and that's pushed down wages and made the
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situation worse for workers. pushed down wages and made the situation worse for workerslj believe that there is a misunderstanding. if you are part of a global economy, you cannot pretend to close your borders to people who will come to your country to find the betterjob. you, as an entrepreneur, if you're closing the border, you're remaining with the only skill you have around yourself. ina only skill you have around yourself. in a global economy, that doesn't work. when it comes to brexit, the migration of workers has been one of the key sticking points, with europe saying we will not compromise on, you know, the four pillars of what the eu stands for, one of which is the eu stands for, one of which is the free movement of people, and yet the free movement of people, and yet the uk voters voted for brexit, which is not about the free movement of people, remaining in the single market. what do you think the outcome might be? what does a
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compromise looked like do you think? i don't believe there is any compromise on this. we are very clear in saying we should make a choice between shaping future trade relationship in a certain form, or preserving freedom, we will get the latter. no, mice will be possible. but that is your feeling about this, how will we end up? do you think no deal is possible inevitabilities at the end of next year? this is what we are dead suggesting to all members. there is no certainty today. if we look at the current negotiations. i do not see any real
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oi’ negotiations. i do not see any real or concrete possibility. we need members to be prepared for an ideal scenario. they give are joining us, no deal is a distinct possibility. let's go to china now — and the northeastern port city of tianjin where business and political leaders are gathered for the world economic forum. among them, jack ma, founder of e—commerce giant alibaba and one of china's richest people. he hasjust been addressing the event. 0ur asia business correspondent karishma vaswani is at the world economic forum in tianjin. jack martin a lot to say including a real impact of the trade war between the us and china. 0vernight, before
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jack martin arrived at the world economic forum, this discussion motion, there was a panel on entrepreneurship. he said to chinese media agency. us china trade frictions were leading him to now no longer go ahead with the plans. when he said that the planned expansion of ali barba in the us would help to create a millionjobs of ali barba in the us would help to create a million jobs over five yea rs. create a million jobs over five years. he said the relationship between the us and china has soured now. isn't going to go ahead with that. when he spoke at the panel on entrepreneurship. he didn't directly reference any of that. what he did
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talk about, however, was the us and china trade frictions were some wasn't happy with. he did expected to go on for 20 years. he also gave the advice to business people and entrepreneurs that they should plan for the worst. he is getting very practical. when it comes to the event, to what extent has been overshadowed. this is one of the dominant themes. this relationship between the us and china is arguably the most important economic and geopolitical relationship in our world today. i thought it was very interesting what he has to say. about the differences in cultures and understanding between the two
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countries, which many people have said to me, is really the reason why they are not able to come to some sort of resolution. he said, while the chinese prioritise, the west emphasise competition and they need to have more discussion and dialogue. thank you very much, karishma vaswani. now let's brief you on some other business stories. brexit will have a bigger economic impact on the uk than on the european union, the former head of the european central bank has told the bbc. jean—claude trichet said the break—up was "totally contrary to the new world" of large emerging economies, the likes of china and india — with single currencies and single markets. argentina's economy shrank by 4.2% in the second quarter,
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its sharpest year—on—year slowdown since 2014. the slump comes amid a damaging drought — and a currency crisis that has prompted the central bank to raise interest rates to 60% and the government to cut spending. argentina has also requested a bailout from the international monetary fund. and now what's trending in the business news this morning. 0n bloomberg, alibaba billionaire jack ma says he can't create one million us jobs after all because of the trade war. 0n cnbc, retail investors in canadian cannabis are ‘buying air,‘ analyst says. on business insider: ‘the market is betting on a bidding war‘. the fight for sky might come down to a rare sealed auction. and don't forget, let us know what you are spotting online. use #bbcthebriefing. that's it for the business briefing this hour,
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but before we go, here are the markets. a strong session, far from a strong session, farfrom hong kong, pretty flat. i will see a moment. up next — newsbriefing. a huge clean—up operation is under way after storm ali battered parts of the british isles with winds of up to 100 miles per hour. it's left two people dead in the republic of ireland and northern ireland. there've also been powercuts, overturned lorries and train cancellations. dan johnson reports. a casualty of the extreme weather which lashed
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the west coast of ireland. but for pa pa but for papa hospitality tent at st andrews. falling trees crushed buildings during northern ireland's strongest ever september gailes. there were near misses the roads. this pilot trying to land in dublin thought better of it. 100 miles per hour winds brought down powerlines. there are still homes without electricity. some engineers on site can't stand up. that stopped us and delayed us from getting some of our customers back on. a woman died when this caravan was blown over a cliff on the irish coast. and then looking to northern ireland water was killed bya to northern ireland water was killed by a falling tree. storm ali made
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its mark and wins were still blowing strong. an inquiry into the disruption caused by the introduction of new train timetables in may has criticised network rail, the department of transport and the train companies involved — saying no—one took charge. hundreds of trains were cancelled on a daily basis by northern and govia thameslink. the rail regulator has highlighted a "lack of clarity" about roles and responsibilities. for those stories and more, breakfast will be coming up at 6am withjon kay and louise minchin, with the day's news, this is the briefing from bbc news. the latest headlines: britain's prime minister has asked her fellow european leaders to drop what she says are unacceptable demands over brexit. the world anti—doping agency is expected to lift its suspension of russia at a meeting in the seychelles. the us senate has given the woman who accused a supreme court nominee of sexual assault, until friday to decide if she will testify. let's look at what the global media
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is chewing on this morning. we begin with the independent, which reports on theresa may's attempts to sell brexit to eu leaders at the summit in austria. the article suggests the british prime minister is running the risk of a row from brexiteers as she tries to compromise on the irish border issue. next, we have the new york times which is warning that denuclearisation commitments made by kim jong—un during his talks this week with south korea's moonjae—in, which the us has welcomed, still fall short of what officials have demanded. let's look at bloomberg china's richest man, jack ma, has backtracked on his promise to create1 millionjobs in the us, citing the ongoing trade war between the two countries as the reason. and in time magazine, an article by amnesty international‘s secretary general outlining the problems puerto rico still faces on the first anniversary
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of the devastating hurricane maria. 0n the front page of the daily telegraph, italian prosecco exports to the uk fall for the first time in a decade but there's debate about whether that's because of brexit or if the market has simply reached its peak and tastes have changed. we are getting the weather now. jonathan is back, as promised. we won't rely on you for the weather report. definitely not. talking of the weather... the political weather in this case. whichever cliche you wa nt to in this case. whichever cliche you want to use. it is looking very dark. i feel very want to use. it is looking very dark. i feelvery sorry want to use. it is looking very dark. i feel very sorry for theresa may. she is trying to deliver something in the most difficult circumstances, trying to deliver something
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