tv BBC Business Live BBC News March 20, 2019 8:30am-9:01am GMT
number ten says theresa may will not be asking the european union for a long delay when she formally requests that brexit is postponed. the prime minister wants to do it as quickly as possible and the delay this is business live from bbc news should be as short as possible and with ben thompson and ben bland. thatis should be as short as possible and that is something i share. populist pals — brazil's right—wing leaderjair bolsonaro and us european commission president president donald trump agree jean—claude juncker said this morning he's hoping closer ecomomic ties. for clarity but that agreement on an extension to article 50 live from london, that's our top might not be reached at this week's european council summit. as the first funerals take place for the victims story on wednesday 20th march. of the christchurch mosque shootings, new zealand's prime minister calls for a global fight against racist right wing ideology. we absolutely have to learn the lessons from what gave rise to the ugly ideology of this individual and what but latin america's biggest economy has bigger challenges at home — we'll look at the health of the brazilian economy.
also in the programme, a major shake—up at boeing, it is under pressure after two crashes. and decca records celebrates its 90th birthday. how does it keep pace with new technology? and on international happiness day, what brings a smile to yourface. happiness day, what brings a smile to your face. let us know and use the hashtag. it makes me happy when i can see you like this, not across the studio. not across the studio. hello and welcome to business live. far—right brazilian president jair bolsonaro has made his first visit to washington to meet us president donald trump. they reached agreement on several key trade deals, mainly in agriculture. but will that be enough to boost for the ailing brazilian economy?
latin america s largest economy got off to a bad start in 2019 — gdp grew byjust 0.1% in the fourth quarter, down from 0.5% in the three months to september. trump may want closer economic ties with bolsonaro, but china is currently brazil's top trading partner. the economy minister paulo guedes said brazil will not undermine its trade with china. but the most pressing challenge is social security reform, namely pensions. it would see brazilians paying into private pension pots and would replace the public system which offers a guaranteed package of retirement benefits. edwin gutierrez, head of emerging sovereign debt, aberdeen standard investments is here. so, what do you think the practical effect will be back in brazil of these trade agreements they have reached? it is fairly limited in
terms of the direct economic impact. brazil is the most closed, major emerging market economy, it does not trade much. these agreements are just the first level of many steps. what about the china factor? the economy minister has just said they will not undermine their close trading relationship with china, so that suggests there is limited scope for partnering with the us. there will be different products that are exported to the us. it is mostly outward looking in focus. there is discussion of introducing beef imports to the us from brazil. brazil's measure exploits are iron ore and soya beans. it is unrealistic to expect that they will be exporting these to the us. do you thinkjair bolsonaro has got the ideas and the ability to achieve in
the brazilian economy what president trump achieved in the us economy in the first years of his administration? it is a different approach that he is taking. there are distinctions to be made when it comes to economic policy. for instance, as we heard, one of the major focuses is on instance, as we heard, one of the majorfocuses is on pension reform which is tied into fiscal responsibility. this is an economy minister who is very much focusing on the deficit and bringing gdp down in brazil, that is in marked contrast to the us where we have seen a contrast to the us where we have seen a blow out of fiscal deficits. this is an important distinction to make. given all that went wrong with the brazilian economy and that it is still feeling the effects of that, do you think they can re—instill confidence in investors, particularly abroad? that is really what is critical for this reforming
agenda. investors are waiting to see. they want to make sure that pension reform is working, they want to see that these trade reorganisation measures showed that brazil is up to business. they are not expecting an impact this year, it is more likely next year when we will start to see the fruits of these changes. thank you. thank you. let's take a look at some of the other stories making the news. boeing has brought in a new vice president of engineering as it tries to grapple with a crisis following two deadly crashes of its new 737 max aircraft. the management reshuffle comes as europe and canada say they will seek their own guarantees over the safety of the plane before they allow it to fly again. we'll have more on this story later in the programme. disney has sealed its $71 billion acquisition of 21st century fox — rupert murdoch s entertainment business, as its prepares to takeon
business, as its prepares to take on netflix with a new streaming service called disney plus later this year. the deal unites cinderella, the simpsons and star wars under one corporate roof to create a mammoth media empire. that is quite a film! a usjury has found one of the world's most widely—used weedkillers was a "substantial factor" in causing a man's cancer. pharmaceutical group bayer had strongly rejected claims that its glyphosate—based product roundup was carcinogenic. but a san franciscojury ruled it contributed to causing non—hodgkin's lymphoma in california resident edwin hardeman. us and chinese negotiators are reportedly planning fresh talks to end a trade dispute between the world's two biggest economies. according to the financial times, the us trade representative and the treasury secretary will fly to beijing next week to meet chinese vice—premier li—yu huh, who will pay a return trip to washington the following week.
the crisis at india'sjet airways is deepening. the government has called an emergency meeting and the carrier has now grounded six more aircraft as it struggles under the weight of debts totalling more than a billion dollars. sameer hashmi is in mumbai. what more i have a planning to do to try and sort this out? well, the government called an emergency meeting on tuesday to figure out a viable option to bail at the airline, given there is a major crisis. if you look atjet airline, given there is a major crisis. if you look at jet airways they have grounded nearly two thirds of their total fleet. they have more than 100 aircraft last year, now only a little over 30 are operating. the concern is if they do not find cash in the short—term, they will be grounded. the government is asking banks to get some sort of capital in
the form of debt or equity to the airline to keep it running until it finds a new investor. the banks are trying to figure out a way how to infuse this into the airline to keep it running. that is one i know you will stay across. thank you for now. thank you for now. let me show you what is happening with the numbers. not much movement in any real direction. it is a mixed bag. we will get the federal reserve interest rate news later. the china and us trade talks are not giving any direction to investors about where they may want to put their money. crude oil is also easing back. there are concerns the us— china trade talks could stall. that would affect global growth. in the uk yesterday we had latest employment figures they show
unemployment in the uk has fallen to 3.9%, its unemployment in the uk has fallen to 3. 9%, its lowest level unemployment in the uk has fallen to 3.9%, its lowest level since the 19705. wage growth is solid at 3.4%. baring all that in mind when we get the inflation update in about a0 minutes and it should show that squeeze on incomes is starting to narrow. some good news there. we will talk about that in a second. let's get the details about wall street. investors expect the american central bank to stick to its cautious tone. at the end of its two—day meeting this wednesday, the federal reserve is likely to keep interest rates unchanged at 2.25—2.5%. however, wall street will be looking for clues about future rate hikes in the fed's outlook. 0ptimism on the us markets about what the bank might do was tempered on tuesday by reports of fault lines emerging in us—china trade negotiations. that will be one to keep an eye on going forward this week. and the bluejean king levi's is set to return to the public market.
the maker of 501 jeans is expected to price its initial public offering before shares begin trading on thursday on the new york stock exchange. sophie kilvert, senior investment manager at seven investment management is here. we heard about the decision from the fad is due later. general consensus that we are expecting they will put the brakes on any rate rises that we re the brakes on any rate rises that were in the pipeline. we are not expecting them to raise rates, possibly not at all this year. there is even talk they might start looking at cutting rates toward the end of the year. we are looking for what they say in their statement, will they signal caution against the future of rising rates? in other economic news, unemployment figures in the uk and we get inflation figures later, what will they tell us? the gap is getting wider and we are owning more than we are paying.
it should be getting wider and we are expecting inflation to be the same, 1.8%. with wages rising they should be rising at 3.a% and the gap is widening. people should be feeling more confident about what they can span. although obviously a brexit word hangs over everything at the moment without any clarity. so people are holding back from big expenditure, unsurprisingly. people are holding back from big expenditure, unsurprisinglym times of uncertainty people seek the safe havens like gold, but the price is down. it is down about 396 this month and that is off a year high, which is interesting. that is a reflection of a stronger us dollar. maybe some hope over the us and china trade talks as well. people are thinking equity markets are doing 0k. at the moment global
growth is growing, although it is moderating, but the world is not too bad and maybe we do not need that safe haven just at this moment in time. we will look at the papers with you later. thank you. thank you. still to come... in the age of digital media how does a 90—year—old record brand keep up? we speak to the boss of decca records about keeping the brand relevant. you're with business live from bbc news. kingfisher, the owners of bm.) and screwfix, have reported like for like sales down 1.6% for the last 12 months. screwfix sales increased 10.3% but it wasn't enough to offset a 2.8% decline in the diy giant b&q. thomas slide is an analyst from mintel. do you think they have got anyway of
rebalancing it so the gains at screw effects cou nterbala nce rebalancing it so the gains at screw effects counterbalance the b&q pulse? what we are seeing is a clear shift in the way people shop for diy from this big box format. it is clear that people are shifting over to do work for them. kingfisher is looking to expand screwfix to offset the declines in the big stores. whether it can offset them enough is what we have to look out for. this is fundamentally the same stuff, they sell the same type of stuff. they can charge more for it at b&q, but this is about our perception. maybe screwfix is more tradesmen and industrial, rather than mum and dad shopping at b&q and choosing a bathroom or a kitchen. they say
screwfix has a smaller range than b&q, but it is about the way people shop. people doing up their homes, and screwfix targeting the tradesmen. we see an ageing population of home owners and they are much more willing to pay someone and the tradesmen go to the more convenient screwfix stores and fewer people i see any reason to travel out to a big box b&q store. people i see any reason to travel out to a big box b80 storem people i see any reason to travel out to a big box 5&0 store. it is interesting. thank you so much. i have been known to flick through the screwfix catalogue. i find have been known to flick through the screwfix catalogue. ifind it have been known to flick through the screwfix catalogue. i find it very fascinating. whatever makes you happy, ban! the business live page has an update on that story. the boss of kingfisher is leaving. the departure has not been announced. this is breaking
news. it also points out that with her departure it leaves just five women chief executives running ftse 100 companies. you're watching business live. our top story... brazil's right—wing leaderjair bolsonaro and us president donald trump agree closer ties, but latin america's biggest economy faces major ecomomic challenges at home. it is particularly on agricultural exports. it is particularly on agricultural exports. now, the music industry has seen a lot of change over the last decade. as cds were replaced by mp3s which then was replaced by streaming. but what next? well, the latest figures show that global recorded music revenues hit $17.3 billion — up 8.1% on 2016. that was the fastest growth in the industry for years. streaming soared by a1% over that time, breathing new life into the sector.
but revenue from cds and records fell 5.a% and downloads slumped by more than 20%. so, how are traditional record companies taking on the challenge? the president of decca records, rebecca allen, is with us now. nice to see you. welcome. i am excited to chat to you because if we think about music over the past few decades, the name thatjumps out is decker. you are running the phone, what a greatjob. decker. you are running the phone, what a great job. i wake up every morning and i cannot quite believe it. to be around 90 years, it makes us the oldest record company in the uk. all industry is going to change, and in the music industry it is evident, how have you navigated that? the business is involving and decca has two types of business at
the moment. 0n the one hand we have a great physical business and that is still quite robust, our consumers are buying physical cds. streaming has lent itself to ownership of business, so people wanting to own something and be part of something. we are pivoting. we have a stream of business we are working towards and we have this physical business. who is buying? it is a 35 plus audience, they like to go into a supermarket and purchase. they still like to look through a booklet and look at the artists and musicians that are pa rt the artists and musicians that are part of it. it is the storytelling. physical is a big part of our business, but we have to pivot towards a more streaming focused business. did the final revival that has been taking place take you by surprise or did you anticipated?” think it took us all a little bit by surprise but it is a wonderful
thing. vinyl has come because of streaming. there is something not as personal about streaming as there is about owning something. people like to look through their cd collection or their vinyl collection and it is something in their homes that they share with people and streaming is not quite that. we have had others on this programme and they say streaming has a role because it allows you to find things by algorithm. does that translate to sales for you? they find an artist and they did not know they liked them. there either hip moment and there is the discovery. for decca, discovery is a natural thing, our company is 90 years old. you may listen to an artist and then you go and discover other artists. what do you think the next big disruption for the record industry will be?
visual streaming is a massive thing and people are listening with their eyes as much as their ears and we are concentrating on that a lot at the moment. for us that is a big deal. who is on your label? it is very diverse, it is not one genre of music. 0urfocus is on classical and jazz and if you were to cut us open, thatis jazz and if you were to cut us open, that is where our two heights belong. we have artists like and ray botticelli. but if you look back at our history we have been known for being diverse and that is still true today. who is yourfavourite customer the classical cellist that played at the royal wedding. he is a unique artist and we love him. and
pavarotti was on the label. and there is a huge pavarotti film coming out injune this year, so telling his story again is such a powerful moment for us. fascinating. we could talk all day. thank you for having me. 5lowing up we always had classical music around the house and the decca label was always there. did you sing along? yes, absolutely, top volume. perfectly in tune. now, how about google gaming? in a move likely to cause a ripple of fear among the makers of the playstation and the xbox, the internet giant says its next move is into video games. it will be called stadia and, unlike its rivals, you wont need a console. instead, the games will be streamed via the internet. but the company did not say how much it would cost. 0ur north american technology reporter dave lee asked google 5 head of stadia whether users would need to have a fast and expensive internet connection to make it work. we strea m we stream a number of different
resolutions which match the bandwidth you have come into your home and we use some very clever compression algorithms inside our data centres to make sure we deliver the highest quality experience to you at the best possible boundary. any gaming platform is only as strong as the games on it. there we re strong as the games on it. there were a lack of games mentioned in that presentation. you need a lot more. we know content is key to any platform success. today was about showing our vision to the developer community. we wanted them to see the capabilities of our platform and start thinking about how they could bring their creativity and technology. do you have more on board? how many? iwill not technology. do you have more on board? how many? i will not share that with you today. we started with uv soft bringing their latest game to our platform back in october and that gives you a strong indication
of our direction of travel. you a strong indication of our direction of travel. what other business stories has the media been taking an interest in? sophie kilvert is joining us again to discuss. let's start with the guardian and this coalmine getting the go—ahead in cumbria in the face of some fairly vociferous protest. understandably so. we have not been coal—mining for quite some time and this is an industry that 100 years ago employed a million people and now does not employ anyone. the new coal mine is quite a surprise. as pa rt coal mine is quite a surprise. as part of the deal they have agreed to have a solar power plant to provide some of the energy for the mine itself. environmental concerns at the top of the less, but there are 500 jobs in the coal mine itself. 2000 jobs probably in the supply chain. interesting from an environmental and economic stance.
let's turn to facebook as well, not farfrom let's turn to facebook as well, not far from the headlines let's turn to facebook as well, not farfrom the headlines most let's turn to facebook as well, not far from the headlines most days at the moment. they are talking about how they profile people for advertising. this suggests they will axe age, gender and other targets, particularly when it relates to credit and loans. credit and housing. there was a reasonable amount of discrimination going on in terms of the adverse people were being shown and the adverse people we re being shown and the adverse people were not being shown. there is a tool, a lookalike audience, which allowed companies to base their adverts on people they already had on their books effectively. the use of that will be restricted. this is really facebook coming under fire increasingly for the way they work and may be opening them up and being less discriminatory. some of them have been saying they have been doing this too long, they were milking money off our personal data and we were not sure where it was
going. they are coming under more scrutiny and it is probably the way it should happen. personal data is personal and there was a realisation that all the data you put out there on the internet does have an impact on the internet does have an impact on you at the end of the day and people want more control of that. on you at the end of the day and people want more control of thatm you are paying for something you are a customer and if you get it for free, you either product. that is how they fund the service. thank you for all of your messages today. todayis for all of your messages today. today is taken on an international happiness day. natalie says, dancing in the rain. letting your song finish before you get out of the car. i like it when your cameras share behind—the—scenes. you are very welcome, we deliver that at the start of the show accidentally. spira says watching my favourite music videos. a big fan of taylor
swift. she brings a smile to my face. that relates to the visuals we were talking about earlier. nick says everything apart from international happiness day. what makes you happy? it is a cliche, but spending time with my family. my daughter came home from a football match yesterday and she was bouncing off the world and it was brilliant. it is infectious. peter says a last—minute winner against the rivals. i assume we are talking about sporting prowess. what makes me happy? not getting up early. that rules out total international happiness day. what makes us happy is getting all your tweets. it is nice to know you are watching and sharing your thoughts. thank you for all of those. we will be doing it all again tomorrow and we will be even happier tomorrow. have a good day.
good morning. we are going to see some springlike temperatures over the next couple of days which is quite handy. today is the spring equinox, when the days are longer than the knights. today will be mostly dry and mild and that is because we have mild air coming in from the south—west. much of the uk is under the influence of this mild hour, the fire northjust is under the influence of this mild hour, the fire north just poking is under the influence of this mild hour, the fire northjust poking out still in the colder air. for many todayit still in the colder air. for many today it is quite cloudy and there will be breaks in central and eastern parts of england and the north east of scotland getting sunny spells this afternoon. 0utbreaks north east of scotland getting sunny spells this afternoon. outbreaks of rain affecting the far north—west of scotland. temperature is about 13 to
15. with some sunshine it could get up 15. with some sunshine it could get up to 16 or17. 15. with some sunshine it could get up to 16 or 17. through tonight some clear spells, a good opportunity to see the full moon tonight, but rain will intensify in the north—west of scotla nd will intensify in the north—west of scotland and the wind continues to pick up. temperatures no lower than 7-11. pick up. temperatures no lower than 7—11. thursday will be a mostly cloudy day with fewer breaks in the cloudy day with fewer breaks in the cloud compared to today. if you do get any sunshine, it will be limited. it is most likely to be in the north east. cloudy and mild and there is temperatures 13—16, but the rain continues in the north—west. this weather system brushes into the north—west of the uk, so some strong winds associated with that. the rain persists as we go into friday. there will be some localised flooding. the
rain moves south and east and eventually into the far north—west of england. but for much of wales and england on friday it will be a dry day. sunny spells behind that area of rain. still mild in the south—east. eventually the chilly airwill south—east. eventually the chilly air will spread its way south east as we go into there we can. but high pressure still dominating, so it will be largely dry into the weekend. as that colder air moves through, it will clear the skies a bit, so it will be sunny over the weekend with temperatures about 10-13. weekend with temperatures about 10—13. have a good day.