tv BBC Business Live BBC News April 2, 2019 8:30am-9:01am BST
you're watching bbc news at nine with me, annita mcveigh. the headlines... theresa may begins five hours of cabinet talks to decide the government's next move hello. in the brexit process. this is business live from bbc news with ben thompson and sally bundock. more likely, but not inevitable. the uk edges closer to a no—deal the noes have it. brexit after policiticans again fail to agree a way through the deadlock. today's marathon meeting comes after mps again failed live from london, that's our top to agree on an alternative story on tuesday 2nd april. to theresa may's withdrawal deal. the prime minister's deal is actually the best on the table. the problem with all of the other options rejected last night is none of them is as good for the united kingdom. the eu's chief brexit negotiator with no immediate end to the uncertainty surrounding says a no—deal is now more likely brexit, we'll look at the impact but can still be avoided. it's had on immigration no deal was never my desired or intended and whether firms have access scenario, but the eu 27 to the workers and skills they need. is now prepared. also in the programme. investors putting the breaks on lyft. the ride—hailing app's shares fall 12% on its second day of trading on wall street. and the pound took another hit last
night after mps failed to decide a clear way through the brexit deadlock. we'll look at what happens next. letting the sun shine in. solar panels being set up in nigeria are helping to keep the lights on even when the energy‘s cut. we'll find out how. ryanair becomes the first airline to enter the top ten ranking of eu carbon polluters. with more emphasis and awareness about climate change, we want to know are you changing your travel plans to reduce your carbon footprint? let us know, just use the hashtag bbcbizlive. hello and welcome to business live. a no—deal brexit is becoming increasingly likely by the day but a compromise is still possible. that's what we've just heard from the top eu negotiator michel barnier. it comes after british mps
failed to unite around any brexit plan last night. later, the prime minister and her deeply divided government will debate their next moves in a lengthy cabinet meeting. we've talked at length about the impact on business, but what does the uncertainty mean for migration? it was a key issue during the leave campaign. in the last three months of last year the number of eu nationals working in the uk fell by 61,000. that took the total number of eu workers in the uk to 2.27 million. that's down from the 2.33 million in the same period the year before. health care, food, construction and childcare have historically relied most on eu workers. they've seen the biggest falls. the lack of clarity over uk employment laws after brexit has been blamed, as well as the fall in the value of the pound over the last two years. that means people sending money back
home are effectively earning less. unemployment in the uk hit 3.9% in january, the lowest level in more than 44 years and that has led some to warn there could be a shortage of talent in the months and years ahead. nick eardley our political correspondentjoins me. he is in westminsterfor us. it was interesting last night, we were all hoping there might be clarity about what happens next of the only thing it's confirmed as mps are more divided than ever. yes, how many times have we sat around westminster ona times have we sat around westminster on a weekday morning and thought we might have got an answer but we didn't quite get it. it is fascinating to see mps work so hard to seize control of the next steps on brexit, but failed to agree anything. there were some things which got close, like a customs union was within three votes of getting a majority last night. the
idea of another confirmatory referendum got within touching distance too. but what we are left with this morning as a parliament thatis with this morning as a parliament that is deeply divided on exactly what brexit should look like and not prepared to compromise enough to get one of those options over the line. and a government that will spend this morning trying to figure out what it does next and how it tries to get some sort of clarity by the end of the week on what happens next. yes, thank you. a busy day ahead for you. good luck in westminster. let's talk about the impact of this is having on the labour market. with us isjon boys, labour market economist for the chartered institute of personnel and development. good morning. john, ben talked about through the statistics there to show there's been a drop off in the number of eu citizens looking to work in the uk, some have left, and that's no big surprise given what's going on? not really but does not
actually been much change in terms of legislation and the new immigration white paper which came out in december suggested any changes when come in until about autumn 2020, so it's the changes ben mentions about depreciation, perhaps feeling less welcome in the uk are uncertain about their future which is driving that drop. in terms of those areas in the economy, the industry who need these workers, agriculture, health care, the leisure sector, how are they coping in the meantime and which ones are most exposed? interestingly, it's happening in both high skilled sectors and low skilled sectors, so there are skill shortages in these sectors and they aren't really coping. businesses are really struggling to get the talent they need. there are ways they can cope, workforce planning, look at not only bring in new talent into the business, but developing their existing workforce, training and developing staff they already have. what i'll be seeing in terms of home—grown talent coming into these
areas where there are those that are leaving and there are areas of expertise required? leaving and there are areas of expertise required ? are leaving and there are areas of expertise required? are we are seeing the labour market is maturing and changing in the uk in reaction to one of this? interestingly, if you look at the increase in employment since the referendum result, two thirds of it was workers over the age of 50. we've also seen massive increases in the number of workers with disabilities, so nontraditional parts of the labour market are increasingly finding employment opportunities and this is a good thing so the structure of the labour market is changing and some of it is not for the worst. all right, john, we've got to leave it there but thanks for coming in to give us your take on the labour market, how it's reacting to all of this change. we will keep you the development in today right here on the bbc. let's take a look at some of the other stories making the news. shares in ride sharing company lyft have slumped by almost i2% in their second day of trading. the stock fell below the company's listing price as investors cashed out after friday's bumper debut.
questions have also been raised over the group's plans to make a profit. starbucks is offering to pay tuition fees for uk staff wanting to get a degree from a us university. the us coffee chain is to provide the cost of university as an employee incentive in the uk, for courses taught online by arizona state university. a similar scheme in the us has enrolled 18,000 staff. lawyers for former nissan motor chairman carlos ghosn says they have asked that their client stand trial for alleged financial wrongdoing separately from nissan, because the company is helping prosecutors. in a statement, ghosn‘s lawyers also asked for a separate trial from ex—nissan director greg kelly, who was accused along with ghosn of financial misconduct. south korean car makers hyundai and kia are bracing themselves for a potential mass recall of some models in the us after a spate of fires. incidents involving fires are linked to one death and more than 100 injuries. sharanjit leyl is in singapore.
these are fires unrelated to any sort of accident or crash all that sort of accident or crash all that sort of accident or crash all that sort of thing and that's what's got people worried. that's right, a p pa re ntly people worried. that's right, apparently they are not related to crashes at all. these fires have started. 0r crashes at all. these fires have started. or to regulators of said it will open an investigation into 3 million of these cars, the hyundai and kia vehicles after they reviewed reports, more than 3000 fires, which have injured over 100 people and is linked to one death. the enquiry by the national highway traffic safety administration follows thousands of complaints about these fires. not caused by crashes. essentially it rekindles a lot of safety concerns about the vehicles of the south korean duo. they've already been
investigated over engine —related records. they've had engine problems, fire issues affecting about 6 million hyundai and kia vehicles since 2015 and only 2.4 million have been recalled for repairand million have been recalled for repair and shares have actually fallen, both down about 1%. thank you. i know you will stay across that story for us. let me show you what's happening on the numbers. japan's nikkei touched a one—month high but ended flat on tuesday. investors got a boost from optimism about the strength of the us economy. there was also the uplift from the improvement in chinese manufacturing figures sterling fell last night after mps voted against four alternative proposals for brexit again. it underlines the gridlock of the brexit process. as it stands, the uk is set to leave the leave the eu on 12th april without a deal, unless an alternative arrangement can be agreed upon. but as we've seen there's not much
that the politicians agree on. and samira hussain has the details of what's ahead on wall street today. 0n on tuesday the drugs chain wardrobes will be reporting earnings and ever since the online giant amazon has got into the pharmacy game, they have been re—evaluating its business, like many of its competitors have too. it has previously announced at a cost savings plan, the aim is to save more than $1 billion, so investors will be keen to hear how it is progressing on that front and of course, the forecast for the rest of the year. the falling prices of generic drugs will likely have an impact on their earnings, so investors will want to know what it is going to do to make up for that. also happening on tuesday, total vehicle sales numbers are out and it's expected americans bought more ca i’s it's expected americans bought more cars in the month of march than it
did back in february. that's a look ahead to what's going on in the usa. shaun port is chief investment officer at investment management company, nutmeg. good morning, so give us your take on brexit, where we are and the impact it's having on stirling in particular. yes, sterling is bouncing around, not surprisingly, plus or —1% today as normal full—scale in these days. it has fallen after last nights events. investors are pricing in a different scenario, so the risk of hard brexit which are seen as very low, 10—15%, obviously sterling would fall sharply on that but on the flip side, the potentialfor no brexit at all, may be a customs union, would be very bullish and could see a 15% rise in the pound, so investors are pricing up different scenarios and as the risks move around, sterling moves to. when you talk about pricing, and we know the market largely projects, if there was a noted brexit on how much of a shock
would it be? before we get into the economics of it, what does it mean for the markets? i think it would be a big global shock to the market, not just the uk a big global shock to the market, notjust the uk market, the us market, asian markets would feel it. they will be worried about economic disruption. clearly the uk is an important part of the supply chain and global financial system and that would be a big shock. equally, if the risk is taken out, completely, maybe to a soft brexit or no brexit, then they would have more confidence. for lyft, i don't know if you could describe it as a honeymoon period because it was short lived. it was oversubscribed on friday etc, and now shares have taken a tumble. i think underwriters got greedy because it was guided at 62-68, got greedy because it was guided at 62—68, oversubscribed, it went up to 87 and now back to 69, so investors are struggling to price a company which is losing 1 billion a year
even when the most optimistic assumptions as to how this company can do in the future it still looks pretty expensive, so not surprisingly, early days, investors are trying to find their feet. initial public offering. indeed. thank you. you will be back later and we look to some of papers why ryanair has made into the top ten of carbon polluters. are you changing how you travel? indeed. powering an energy revolution. we meet the firm bringing power to remote parts of nigeria using solar technology. stay with us for that. you're with business live from bbc news. first of all, mps have other things on their agenda at the moment other than brexit. 0ne on their agenda at the moment other than brexit. one of them is their calling for the break—up of the uk is big four accountancy firms
following a number of high—profile audit scandals. lawmakers say the move would make the firms more effective in tackling conflicts of interest. let's talk to chris roebuck from cass business school. chris, the big four, kpmg, deloitte, pwc and ey, they do more or less more 01’ pwc and ey, they do more or less more or less dominate the uk, so what are mps hoping to do about that? i suppose, 0k, what are mps hoping to do about that? i suppose, ok, the first point is this is important to everybody. it's not just about accounting because as we have seen come if there is a major audit problem that causes a major organisation to collapse, it affects not only the organisation, it affects the employees, customers, it affects the suppliers and obviously it affects the investors. anybody with a pension plan potentially, so it is important and it's around these two key issues, the technical competence of the execution of the audit, secondly, the ethical relationship between the audit firm and their client and how far they are prepared
to go. simple calculation is chief executives want to look good. they need good financials, so what is the extent to which the audit firms are prepared to go to help them achieve that and to keep their client? chris, briefly, time is tight, but we talk about this conflict—of—interest, so why has it taken so long for lawmakers to act? i think the problem is it is to some degree a hidden problem. underneath the surface, unless it blows up as a disaster, nobody sees it. the evidence would suggest 27% of audits don't meet the required standard. let's be honest, if 27% of bus journeys went to the wrong place or 27% of cars sold in showrooms didn't work, there would be an outcry because it's obvious. but this only becomes obvious when a problem becomes obvious when a problem becomes a disaster. and it is good that this investigation is taking place, to reveal actually that what's going on underneath the bonnet isn't as good as it should be. chris, it's good to talk to you
as always. 0n those plans to break up as always. 0n those plans to break up those big four accountancy firms. do you remember northern rock? does that name ring a bell? the government is cashing in on £4.9 billion worth of northern rock loa ns. billion worth of northern rock loans. to find out more details of that, go to the business life place. look on the bbc website. your‘re watching business live. our top story — the european union says a no—deal brexit is becoming more likely by the day after british lawmakers failed to reach a concensus on how the uk should leave the eu. a quick look at how the markets are faring. trading in europe now for nearly 50 minutes, a bit of a mixed picture. the ftse100 up by 5.6% in the month of march. it performed really, really well actually. 0ne of march. it performed really, really well actually. one of the outstanding indexes of global markets. keep an eye on the
currencies as we get more detail of what happens next in brexit. now, access to a reliable electricity supply is something we take for granted. but for many around the world it's still not guaranteed. it's estimated around one billion people don't have access to electricity. but it's quickly changing with more than 120 million people getting access to power for the first time in 2017. 0ne firm making it happen is called lumos, which uses solar power technology, and it's got around 100,000 customers across africa already. and it's got around 100,000 alistair gordon is chief executive of lumos. welcome to the programme. alistair, you are a new recruit and have been there five months. a very short time. it's a real change for you in many ways, one big change being it's your first foray into africa and you're familiar with working in developing countries are so why do they want to on—board? developing countries are so why do they want to on-board? the founders who came up with the vision to
provide solar power and get it into households, they looked at the technology, the start—up, solar expertise, but after a period of time they started to look for consumer execution and that's what we are doing in nigeria. that's my background. how does lumos work? simply we have a panel, an indoor or outdoor unit, effectively a battery, the panel charges the battery and enables households and micro businesses to get access to an atrocity. the real trick is it will allow them to be paid to their mobile airtime account so it makes it exceptionally accessible for people to pay, open up they atrocities apply, and use it for their tvs, phone charges, atrocities apply, and use it for theirtvs, phone charges, lights. atrocities apply, and use it for theirtvs, phone charges, lightsm makes such a difference clearly, is all of those things you might need in the home, it also means business can operate and that's the crucial thing. it creates jobs and prosperity. absolutely, powering the economy is so important and someone
who can open a market draw for next to two hours of night, and if they got a light bulb on, it attracts people and they make more money. they take that more money back into the household. people running hairdressing salons, exactly the same. you are operating currently in nigeria but also the ivory coast in the west coast of africa. the african continent is in your sites. huge. enormous. there are other players out there but there's plenty of room for you all. you look at the 1 billion statistical people at the bottom but you also look at the statistic of people who don't have reliable electricity and that's a huge number of people, so we are very much looking to expand to sub—saharan africa and ultimately back into asia which is where i've come from. it sounds like an obvious question what happens when the weather is not good? you don't get as much charge out of your solar panel but they still work. they are still loading the battery. putting capacity in but not as efficient as
if it's a bright sunny day. if i was running a small micro business near lagos, what is the incentive for me to switch? i'm using generators, i might use other systems. cost, running our unit is similar to making a saving of around 60% from what you will pay for fuel for your generator. you obviously have the issues of fumes, the hazardous nature of the fuel, and just the noise and ultimately continually getting fuel. what about security and stopping someone from licking my panel and the battery which operates it? this is going back to the vision of the founders. they looked at the technology to secure that unit. it's quite expensive and it is our asset but we put it into the field and we make sure no one can hack into it, short—circuit the payment mechanism, and that's what i security provides. by and that's what i security provides. by using it, it allows us to make it accessible to the consumer by paying accessible to the consumer by paying a small amount over a long period of
time. 100,000 customers also. you have ambition to supply 100 million. it's a bold ambition. it may not be quite that large by tomorrow afternoon but yes, we want to expand. what is the challenge which comes with that? talk to me about theissue comes with that? talk to me about the issue majestically of operating. absolutely, particularly in nigeria we are looking at we are nationwide and selling nationwide, a network of warehouses, but what we are trying to do was actually empower people to become entrepreneurs. so whether thatis become entrepreneurs. so whether that is our sales people, outside of where we sell in the stores, we also sell through tactics, rickshaws, people will know it as, but the drivers of that is making commission and everything else. the guys doing installation, technology support, they are in the communities are supporting those people. they are in the communities are supporting those peoplelj they are in the communities are supporting those people. i have to do so, when i met you earlier i thought you look really relaxed.
quite calmer. you've been a job five months. anyway, good luck. thank for coming on. 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. stay up—to—date with all the day's business news as it happens on the bbc‘s business live page. there is insight and analysis from our team of editors right around the globe. and we want to hear from you too. get involved on the bbc‘s business live web page at bbc.co.uk/business. on twitter we are @bbc business. and you can find us on facebook at bbc money. business live on tv and online. what you need to know when you need to know it. shaun is back to look through some of the papers. this is an interesting one we talked about at the start of the programme, that ryanair about at the start of the programme, that rya nair has about at the start of the programme, that ryanair has made the top ten
list of carbon emitters. it's probably not a lead that they want to be in. is that fair? if you look at the nine companies ahead of them, they are worse polluters, the worst in poland, but this is an increasing challenge. ryanair is very efficient, it adopted the new most efficient, it adopted the new most efficient engines, rolls—royce engines, so it's really a challenge for airlines to reduce their carbon emissions, but ryanair is up almost 50%. is it because they have more flights? volume and price. ryanair scores really low across a range of environmental social and government impact as well, one of the lowest scoring companies in europe but clearly it's become a massive emitter of carbon. it does defend itself saying we are one of the greenest and cleanest airlines out there at the moment. the eu would disagree. in the meantime, if we
talk about some of our viewers' responses to this because of course, we asked you if you would choose to do travelling in a different way as a consequence of the impact on the climate. richard says absolutely not, i wouldn't change my plans. it's up to governments to fund green transport. i've never taken a ryanairflight transport. i've never taken a ryanair flight and transport. i've never taken a ryanairflightandi transport. i've never taken a ryanairflight and i never will, says sophie. sometimes you can take the train. if you are flying to the uk or continental europe you could ta ke uk or continental europe you could take the train. a survey early in the talked about ethical choices in purchases and 75% of people want to reduce the carbon emissions when they travel and 37% of people consider ethical impact when making big decisions like this. the next story is the manufacturing data released in the uk yesterday which was really good and strong but actually it's about people stockpiling and getting ready for any scenario with regards to brexit.
manufacturing output in march was driven by stockpiling thought it output in the short term but as the stocks are worked off, you expect growth to slow. good now but no later on. i was talking to local retailers about what they are stockpiling ahead of departure from the eu, and what's interesting is storage firms are doing really well. warehousing, logistics, it's a great time. yes, raw materials, you need somewhere to store them. grateful storage but not long—term. somewhere to store them. grateful storage but not long-term. how are you getting ready, are you doing anything? no, i'm not, actually. i think about brexit on an hourly basis so i think i would have had enough of brexit once it's resolved. all right, thank you so much for coming in. thank you for your company, as well. so much has been going on in the last couple of hours. michel barnier speaking to the of course and theresa may is with the cabinet today in a locking meeting in number ten. with the cabinet today in a locking meeting in numberten. much with the cabinet today in a locking meeting in number ten. much more of course throughout the day on the bbc
website. we will see you tomorrow. abide by. have a good day. good morning, yesterday a bit of warm sunshine but it's all change through today. we've got some rain currently moving its way eastward across england and wales linked into this weather front and behind it you will notice we have got these blues taking over the map. the air coming in from the north and west will feel much cooler through the course of today and this north—westerly wind will bring us a few showers. they could be heavy with some hail and thunder and some sleet and hail snow mixed in. as the rain clears, away from eastern areas, eventually some sunny spells developing as well. maximum temperatures, 7—9. significantly lower than yesterday for many of us. through tonight, we will continue with the showers which could be wintry but more persistent
rain and hailsnow could be wintry but more persistent rain and hail snow will move its way into the north—east of scotland. temperatures widely down close to freezing. in the countryside, certainly below freezing so there will be a frost first thing tomorrow morning. during wednesday, we have an area of low pressure in the north sea which will throw this weather front westward and as it moves into the colder air, it will bring snow to the grampians through the southern uplands, the north yorkshire moors, the north pennines and a bit of snow in the south pennines and the welsh mountains, but rain spreading through northern ireland further south. dry with sunny spells. these are the temperatures on the thermometer. 6-10, but temperatures on the thermometer. 6—10, but that's only half the story, because there will be fairly strong wind throughout wednesday particularly in the north—west, 60 miles an hour, so factor in the wind. this is what it will feel like through tomorrow. 0ne wind. this is what it will feel like through tomorrow. one or two celsius in the north—east. six or 7 degrees further south—west. going into
thursday, this area of low pressure still with us and thatjust keeps things pretty unsettled through thursday, so we have got the area rotating of around, outbreaks of rain and showers, across wales, southern england, the midlands, the chance of a bitter pill snow. and across “— chance of a bitter pill snow. and across —— better hill snow. maximum temperatures, 7—10dc. by the end of the week, friday onwards, it's not going to be as cold, mostly dry and there will be some sunshine with the wind coming from the south—east. making things more settled and as temperatures start to rise by a few degrees. by day. bye byes.