tv Business Briefing BBC News July 15, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. china reports its slowest growth in almost three decades, as its trade war with the us begins to bite. and amazon gears up for its huge prime day, but some of its workers have decided to boycott the event. and on financial markets asian stocks begin the week on a cautious tone as investors digest the latest gloomy report from china.
the world's number two economy, china, grew at its slowest pace in almost three decades in the past three months, hit by the us—china trade war and weakening global demand. gdp came in at 6.2% between april and june, the weakest pace for at least 27 years. the economy expanded by 6.6 percent in 2018. june marked the first full month of 25% us tariffs on $200 billion of chinese goods, after the rate was raised from 10% weeks earlier. figures on friday showed the impact of the increased tariffs on trade. exports fell 1.3% in june, while imports slumped 7.3%, on flagging domestic demand. elsewhere car sales plummeted a whopping 12.4 percent in the first half of the year.
the imf last month lowered its forecast for chinese growth for 2019 as a whole to 6.2%, warning that "uncertainty around trade tensions remains high and risks tilted to the downside". china's already brought forward a raft of stimulus measures to cushion the impact of its cooling economy, including tax cuts worth $297 billion and spending on roads, railways and other big—ticket infrastructure projects. today's weak numbers are likely to raise hopes forfurther easing. i'm nowjoined from beijing by tom rafferty, who's the principal china economist at the economist intelligence unit. give us your take on these growth numbers out today. i think, as you
said, this is the slowest growth for several decades in china. there is a slowdown in china so it is not particularly surprising. i think we are seeing the impact of the us china trade war and the difficulty that generates for businesses. and the slowdown of some key domestic drivers in china. the domestic property industry, which has been supporting growth, that has slowed down and will be a key area to watch going forward. 6.2% growth was as expected, it is not a shock but is still going the wrong direction, as it were. we are growth slowing. you think is put more pressure on policy makers to take further action?” think it'll be ok from that perspective, but that will the key issue for financial markets. growth issue for financial markets. growth is 6.3%, the government is targeting
6% to 6.5%. overall the government is doing ok, it would take a horrible performance in the second pa rt horrible performance in the second part of the year to make a problem. i think more stimulus is unlikely, stimulus has been quite aggressive already and we're not expecting additional stimulus beyond that, given that it seems to be operating ina given that it seems to be operating in a reasonable range. retail sales p°pped in a reasonable range. retail sales normed up in a reasonable range. retail sales popped up as well, so i think there will be no more stimulus over the course of the year. what about trade relations between the us and china. is this news put further pressure on negotiators to try to sort that situation out? i think there is probably a desire to get a deal but the politics of a deal have become more complicated. obviously in the 620, more complicated. obviously in the g20, president xi and president trump were able to agree and give
some short—term certainty for industry. i think a lot of businesses and investors are concerned about the overall long—term trajectory, and that will certainly make businesses cautious in terms of long—term investment plans, capital investment, and so on. there is still a lot of uncertainty but the near—term outlook has improved a little bit. thanks for your analysis. staying with the trade war, let's now talk about one of the companies right at the centre of it, huawei. according to the wall street journal, the chinese firm is considering axeing hundreds ofjobs in the us after its operations were hit by the trump administration. mariko oi nowjoins us from singapore. nice to see you. what is likely to happen at huawei? well, we have reached out to huawei if they can
either confirm or deny that wall street general report. we are yet to hear back from them, but according to the newspaper, layoffs are expected to affect its research and development labs in the us, which employ about 850 people. this, of course, follows the government decision to put huawei on its so—called entity list, which bans american products from supplying huawei with new american—made goods and services unless they obtain licenses. the wall streetjournal says being on this blacklist, if you like, means that huawei employees in the us were restricted from communicating with their colleagues in china, but it was interesting to see another reporter by reuters saying that the government may approve licenses to start a new sales to huawei in as little as two weeks. so after the meetings between president trump and xi jinping a few months ago, they seem to be easing
restrictions. amazon's prime day, which starts today, is usually one of its busiest times of yearfor the online giant. but warehouse workers in minnesota have picked the huge sales event to strike over working conditions. it signals that even after the firm committed to paying employees at least $15 an hour last year, concerns about conditions persist. the bbc‘s michelle fleury has more from sha kopee minnesota. this is an amazon's massive warehouse here in minnesota. a handful of workers here are planning to mark amazon's prime shopping day, and annual sales event, with a strike. earlier, ispoke and annual sales event, with a strike. earlier, i spoke to one of the workers to ask him what they are protesting. we are going on strike on prime dave mainly to demand safe
and securejobs on prime dave mainly to demand safe and secure jobs from amazon. the speed at which we are required to work are exhausting, sometimes leading to injuries, and people not seeing a job as a thing they can do long—term, plus with amazon's reliance on temporary workers, not having the same job security. basically we just want them to treat us basically we just want them to treat us with respect, as human beings, and not treat us as machines. for most consumers, you click a button, your package arrives a couple of days later, good prices and convenience, what is the issue here? iama convenience, what is the issue here? i am a picker, i convenience, what is the issue here? iam a picker, i have convenience, what is the issue here? i am a picker, i have to pick one item about every 80 seconds, or 332 per hour —— every eight seconds, for a ten hour day, a0 hours a week. it is very fast paced work, i have seen
many people in my department have to deal with shoulder injuries, back injuries, knee injuries. in some cases after less than a year on the job. we reach out to amazon and ask them for a comment, and they told us that they already offer what the protesters are asking for. in a statement, they also said... while amazon may feel that their workers here are getting the conditions they want, those behind the protest disagree. almost two million low—paid workers in the uk, could receive statutory sick pay for the first time as part of reforms aimed at supporting people with health conditions in the workplace. currently, employees must earn at least the equivalent of 1a hours on the minimum wage to qualify, but the uk government
is considering lowering this threshold. a close ally to borisjohnson, says he will attempt to secure a trade deal with the us, if he's selected britain's next prime minister. according to a report in the sunday times, mrjohnson would like to meet us president donald trump within two months of taking office, believing a trade deal with washington would act as precedent for other trade deals. american airlines has extended flight cancellations for a fourth time due to the grounding of the boeing 737 max. the world's largest carrier said more than a hundred daily flights would be grounded until november. united airlines made a similar announcement on friday saying it will take the aircraft out of its schedule through november the third, a month longer than previously planned. are really quick look at financial
markets, because there have been reactions to that number from china. i think the fact that it was not surprisingly worse. this these are the commodities, the price of brent crude headed down again. the mayor of london, sadiq khan, says research into the rates of violent youth crime in london shows a clear link between poverty and serious violence. the study is one of the most comprehensive ever undertaken here's our home affairs correspondent, dominic casciani.
full of fighting spirit for all the right reasons. some of the 320 children coached by south london's dwayne annex boxing club. people give their time forfree, dwayne annex boxing club. people give their time for free, teaching children discipline, self—confidence, and how to stay away from crime in one of the poorest parts of london. joshua simpson's jab is the measure of success. simpson's jab is the measure of success. on the verge of a criminal life, police took him to the club for mentoring, and he is now a 16—year—old champion. for mentoring, and he is now a 16-year-old champion. people are out there trying to get out, and there are people who are there and they like to be there. now i can see that there are loads of different routes andi there are loads of different routes and i can pick whichever route is best, everything is open now. the clu b best, everything is open now. the club is a tribute tojoshua's cousin, dwayne simpson, stabbed to death while protecting a friend. we are dealing with young children who are dealing with young children who are frightened, they are stressed,
they are going through trauma, because this youth violence has now got so out of control. london's mayor, sadiq khan, says he is worried what will happen when the schools break up for summer. this research shows that in 75% of the bar is where there is violent crime, these are in the top ten with the most poverty, the most deprivation, concerns around mental health, the biggest levels of exclusion. members of the team here will be in downing street today to share their experiences. the government is putting an extra £100 million into the police this year and it plans a legal duty for schools and law enforcement to work together to combat youth violence. this is the briefing from bbc news. the latest headlines: britain, france and germany have appealed for an end to escalating tensions over iran's nuclear programme. president trump has been accused of racism after telling a group
of ethnic— minority congresswomen that they should "go back" to where they came from. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the sun's headline after england's thrilling victory. it's referring, of course, to england's thrilling world cup final victory over new zealand. after both the match and a one over apiece play—off both ended in draws — england were declared winners for having hit more boundaries. next the daily telegraph has this picture of djokovic sealing his victory, and breaking federer‘s heart — it says — after winning the longest men's final in wimbledon history! moving on to the the times and borisjohnson saying one of his first moves if he becomes prime minister,
would be "resetting" uk—us relations with a visit to the states to discuss a future trade deal. staying with trade, it's the financial section of the guardian, it reports on a seven—year low for uk high streets, with shoppers staying away. it blames wet weather and brexit uncertainty. the financial times says hong kong's leader, carrie lam, has made several offers to resign over ongoing protests, but they have been rejected by the chinese government. an interesting study on dementia is on the bbc website showing that everyone can lower their risk of dementia — even if it runs in the family — by living a healthy lifestyle. with me is annamarie phelps, chair of the british horseracing authority. welcome to the briefing. so what are you watching? i was