tv BBC Business Live BBC News August 22, 2019 8:30am-9:01am BST
this is business live from bbc news with victoria fritz and maryam moshiri. midsummer turbulence: ryanair pilots start a 48—hour strike — at the height of the holiday season. live from london, that's our top story on thursday august 22nd. it is going so well! the strike is over pay and conditions — and the second round of strikes is planned for early september.
also in the programme, the us central bank reveals it's been split over cutting the cost of borrowing — ahead of a crucial address by its boss. european stocks are open and falling from health care and industrial, to financial stocks. also in the programme: tackling unconscious bias — we'll talk to man determined to make sure we're all on an even playing field when it comes to getting a job. today we want to know: do you think paying more for plastic bags helps the environment as the us supermarket group morrisons reveals it is raising the cost from 20p, up to 30p, that's 36 cents. hello and welcome to business live. we start here in the uk — with travel worries for thousands of airline passengers
as pilots at europe's biggest budget carrier, ryanair, walk out on strike at the height of the summer holiday season. the action by ryanair‘s uk—based pilots began at a minute past midnight and will run until midnight tomorrow — the bank holiday, the ybusiest day of the year for air travel. ryanair is due to carry over a quarter of a million people on more than 1700 flights from the uk over the 48—hour period. it's drafting in extra pilots and has promised to operate a "full schedule" of flights to and from uk airports. but it says it can't rule out small delays or changes to flights. it's telling passengers to check their sms or email or the compa ny‘s website. more industrial action by uk pilots is planned
between the 2nd — 4th of september, unless an agreement over pay and conditions is reached. that will also affect spain. ryanair failed in a court battle to get the strike blocked by britain's high court. but it did succeed in stopping a strike by some 180 pilots based in ireland. a strike with us now isjohn grant, aviation expert for aog aviation consultancy. thank you forjoining us. it looks from looking at what is happening with ryanair today like their plan has worked, and disruption has been kept to practically nothing. how have they done this? there is no disruption so far. they have brought forward flight crews from days in advance, using them to cover the shifts. don't forget we are only talking about 25% of ryanair boss michael uk based pilots are so judicious rostering allows them to cover this, but you cannot do that repeatedly over the next few weeks.
although today's plan strike hasn't had the impact the pilots hope, there are more plan. as youjust said, from the 2nd of september to the fourth, another plan for some in spain in ten days, the irish will go back to their pilots union and look for some sort of action as well so this is an ongoing issue. what is the problem with the pilots? this is an ongoing issue. what is the problem with the pilot57m this is an ongoing issue. what is the problem with the pilots? it is about working conditions and practices. ryanair are a very strong, well—organised airline that works their pilots really maximises hours, very early starts, late finishes, and the pilots have reached the point where, in terms of global pilots, we have a shortage, so global pilots, we have a shortage, so if you are going to exercise your power now is the time to be having those negotiations with ryanair. how bad is that shortage? we need up under a new pilots each day for the next 20 years, across the world. why
is there such a shortage? we are at a moment in time when we have lots of pilots reaching retirement age and we have not been filling the pipeline behind them with new pilots, and we have this unprecedented growth in demand, in asia, so we are seeing more airlines and aircraft and as a result of that we need more pilots. ryanair, you hear passengers unhappy, now the pilots are not happy, and yet, they look like they are doing 0k compared toa look like they are doing 0k compared to a lot of rivals. what are they getting right? their cost base and productivity, and there is no one better than rya nair productivity, and there is no one better than ryanair in that particular area of business. when luftha nsa particular area of business. when lufthansa were struggling and when iag say that they are having a slowdown in demand, ryanair relative to everyone else are doing really well and will continue to, because they are obsessed with costs. john grant, thank you very much indeed. a shortage of pilots globally. this could be our new location. would you
fly ina could be our new location. would you fly in a plane with us at the helm? the way things are going today,...! yet in touch with us at #bbcbizlive. let's take a look at some of the other stories making the news. royal dutch shell has made its first foray into australia's highly competitive power sector with a a$419 million takeover offer for erm power. the deal would give shell a power supplier with almost a quarter share of the commercial and industrial retail market. erm is the second—largest energy retailer by load in australia. argentina's new treasury minister, hernan lacunza, has pledged to use the country's dollar reserves to shore up the peso — as fear of a default grows. argentina's central bank has spent over $700 million trying to stem a collapse in the currency since the 11th august primary election, which saw president mauricio macri beaten by centre—left rival alberto fernandez.
australia's qantas airways says annual profits fell i7% last year — worse than investors were expecting. it's been hit by the weakest australian economy since the global financial crisis a decade ago — coupled with higher fuel costs. the uk government says it will sign a continuity free trade agreement with south korea later today. it aims to replicate as far as possible the terms of the existing eu— south korea deal when britain leads —— leaves the block at the end of 0ctober. monica miller is in singapore. this is the first post brexit deal with an asian country. trade ministers on both sides are expected to sign it in london later today. it will allow bilateral trade to continue in the event of a no—deal brexit, when the 31st of october comes around. trade between the de
smidt countries is worth about $18 billion and that bilateral trade accou nts billion and that bilateral trade accounts for 1.1% of total british trade, which is a small comparison to what trade is worth with the eu, which is about 48%. south korea is amongst the uk's top trading partners in terms of british export sales but the agreement today is not a permanent trade deal because it will have to be renegotiated within two years. will have to be renegotiated within two yea rs. if will have to be renegotiated within two years. if the uk does leave the eu without a deal it immediately will no longer be part of around 43 trade deals the eu has signed over the years. thank you, monica miller in singapore. stocks in asia have been drifting. investors finding little in the minutes from the federal reserve's latest meeting to alter expectations for more aggressive interest rate cuts in future. hong kong saw the biggest losses, china fluctuated, japan closing pretty black. here is what
is going on in europe. just a few little bits of corporate news, when it comes to the ftse 100. little bits of corporate news, when it comes to the ftse100. the uk gambling group rank said it was seeing results of a turnaround programme, and is battling to offset lower spending by high running costs —— customers and declining football at the bingo. and laura ashley, the fashion retailer, a big four year loss for them, a big, sharp fall in sales across furniture and decorating lines. further afield, the annual us central bank meeting is about to get under way injackson hole, wyoming. it will be addressed by the boss of the federal reserve. this comes in the wake of the revelation that the bank was split over whether or not to cut interest rates. michelle has the details. they are split on that decision. you
have those who say that the economy is in have those who say that the economy isina have those who say that the economy is in a fairly good place, that the economic data doesn't look too terrible. you have two and others who wanted more aggressive cuts. that is what you are seeing at the moment. as the financial markets are flashing red, there is this sense of which data should we be looking at, how concerned should we be? on the surface the uk economy —— us economy is doing 0k surface the uk economy —— us economy is doing ok but there are concerns about donald trump's trade policy and how much that is seeping into the economy, holding back companies spending and having a knock—on effect on the global economy. there are concerns about what is happening in germany, in china. all of this has been balanced by the fed, and they are characterising this as a recalibration rather than the start ofa recalibration rather than the start of a series of rate cuts. we can speak to fiona who is a market a nalyst. speak to fiona who is a market analyst. let's talk about europe. we have some interesting data out of
the german and french economies today. what does it say about the state of those economies? we've had a positive surprise from both germany and france, which is good for the european economy and sentiment in general. last week we saw that the german economy contracted in the second quarter and peers have been growing that we were going to see another contraction in the third quarter. and that would mean germany is entering a technical recession. recession fears have been building. there's been lots of emphasis on the figures today. the fa ct emphasis on the figures today. the fact that they have come out better than expected has lifted sentiment. this doesn't necessarily mean that germany will avoid a recession, but it does mean at least that things are not looking quite as dire as we might have originally thought. a few hours ago we got some data out, the private survey from japan and it
appears the manufacturing sector they continues to shrink. how worrying is that? again it is worrying is that? again it is worrying because it is the manufacturing sectors we are seeing across the globe and this comes back to the us— china trade dispute. we are seeing a slowing down of global trade and that is affecting the manufacturing sector is in a lot of companies —— countries. there is japan. we noticed and we talk about germany because it is such a strong exporting country and it is such a central area of the economy but it is concerning, and we have the us out this afternoon so again investors will be looking to see what is happening with the manufacturing sector, there. come backin manufacturing sector, there. come back ina manufacturing sector, there. come back in a few minutes to talk about the plastic bags and other stories in the papers. still to come, we'll be talking about aiming to take the bias out of hiring.
the government is launching a review of the high—speed rail network, from london to birmingham and to manchester and leeds, known as hs2. there has been concern about cost, the exact route of the line and its effect on those living near it. ben thompson has been to crewe for us this morning. good morning from crewe, which is on the proposed hs2 line, which would stand to benefit from those quicker services between london and birmingham then onto here in crewe before going on to leeds and manchester but there are questions, and the government could review the project and decide whether it will get the go—ahead. what happens next? with me is adrian. £7 billion already spent. 56 million pounds price tag, do you think it is ever going to get built?|j
price tag, do you think it is ever going to get built? i don't think it will in its current form, and nor should it. it is the wrong solution to the right problem. we need to make sure that there was sufficient capacity but there are other ways of doing back more cheaply, using digital technology and the changing the signals on the line to increase capacity. and the use and upgrade and the new platform is a very good and the new platform is a very good and can be used even if we don't build hsz and can be used even if we don't build h52 in its entirety. and can be used even if we don't build hs2 in its entirety. isn't this money better spent on a northern powerhouse rail connecting liverpool, leeds and manchester, or starting at the top and looking south rather than tom london was again up to birmingham? there is no guarantee that these next phases will get built at all. you need to look pragmatically at each constituent part and build a business case for a railway that works for everybody. hsz is predominantly a long—distance line that benefits london, people say it benefits the north, but it is not going to benefit the north if you are a commuter from walsall to birmingham in the west midlands or a
commuter from macclesfield into manchester. what we need is something that encompasses the need of the whole of the north, rather than simply one very expensive route. good to talk to you, adrian, thank you so much. that controversy will continue. the government is going to decide whether this is value for money, whether it is money well spent, and it will report back at the end of the year. lots of uncertainty but also, that controversy continues. cuadrilla has stop fracking for shale gas in lancashire following the largest earthquake on wednesday evening. you're watching business live. our top story: ryanair pilots are on strike at the height of the holiday season after talks failed to stop a work—out. uk pilots are angry over pay and conditions. the company won a battle to stop similar action by its irish
pilots and certainly in terms of disruption we have not seen much yet this morning. which is good for people who want to travel with ryanair through this people who want to travel with rya nair through this thursday. through to friday. it is through till midnight. thank you for saving me! hiring the best talent is one of the most important aspects of any business — but often recruitment bias can hamper the best intentions. hiring discrimination is a big problem with complaints ranging from gender to race, or sexual orientation. ethnic group, and in the uk alone, a recent study found that more than 50% of recruiters admitted bias affects their candidate choice. around 74% of respondents reported witnessing discrimination during the course of a recruitment process. well, the uk—based firm, nottx says its blind recruiting platform offers a solution to the problem. it champions name—blind profiles ofjob applicants so job seekers are
chosen on merit alone without any gender or ethnicity bias. nottx's founder biju menonjoins us now. thank you for coming onto the programme. an interesting concept. why do you think there is a need for this kind of technology in the recruitment process? many job are not getting the chance to sit in front of the interview. —— many job—seekers. and many candidates exclude themselves because they don't feel confident to get through the process, so what blind hiring does is it takes away the bias from this process, which helps candidates be part of the end—to—end hiring process. how does it do that? we use the principle of anonymity in the initial stages. we take out the name, gender, ethnicity from the cv and in doing so make sure that the
covering letter is the highest. by doing so, hiring managers can select the candidates applying, purely looking into their abilities and achievements. it is a small step, but a giant leap for the job—seekers out there. do you have any evidence this is working? there are lots of studies, so for example, they get an increase in the candidates applying an almost 50% of women getting to the interview stages which is a significant change compared to how the process was a few years ago. more importantly, we saw a 30% increase in ethnic diversity in candidates, getting hired. all of these factors put together, we feel that the scene in the recruitment world is changing. it is one thing
to get more people into the process, and another to get them to an interview stage, but surely at that point conscious or unconscious bias sta rts point conscious or unconscious bias starts to kick on again because it isa starts to kick on again because it is a face—to—face interview. starts to kick on again because it is a face-to-face interview. what we do is we use the principle of accountability. we can detect patterns of decision—making. let's say the hiring panel over 8—12 months hires only men even after women getting to the process. the stakeholders, the leadership, no there's a problem so this is clear evidence where they can tackle that, by creating educational programmes like training and so on and that makes hiring managers very conscious about their biases, and from then onwards, it will help them to change the way they think. talking about how conscious you are of your own bias, to come to your company and
asking for help, it is an admission, isn't it, by whatever company you are working with that we have a problem. are people willing to admit that kind of problem? no. a lot of evangelism is required. there is a role that government has to play, to make it a bit more under the legal framework. south korea has taken the lead, almost legalising blind hiring isa lead, almost legalising blind hiring is a process. making it obligatory? exactly. that is interesting. why is it important to have a diverse workforce, why does it matter?m it important to have a diverse workforce, why does it matter? it is about diversity of perspectives that come to decision—making. a candidate would bring a streetsmart bus, a different perspective than somebody who has just been to elite universities. just imagine all that coming toa universities. just imagine all that
coming to a problem—solving situation and that can change. the diverse organisations are performing better than non—diverse organisations. more gender diverse organisations. more gender diverse organisations are 15% more likely to be successful and ethnic diverse organisations 35% more likely to be successful. and they are facts. that's interesting. what next for your company? there seems like a great idea to be rolled out across a range of companies but it feels like it isa range of companies but it feels like it is a one trick pony. what do you do beyond this? we work with partner organisations to make sure that it is not just organisations to make sure that it is notjust technology organisations to make sure that it is not just technology that is required to change this, you want to make sure that organisations broadcast to a wider audience that they are doing fair practices because unless candidates get to know that there is a fair
recruitment practice, they wouldn't be wanting to become part of it. lovely to talk to you. pleasure. all this week we've been looking at the challenges — and opportunities — for older people in the workplace. fashion is a business that can seem obsessed with youth — but in moscow one modelling agency has decided to take a different tack.
i would love to look like that when i'm 65! they look great, good for them. earlier we ask you to tell us what you think about plastic bags being charged for. morrisons supermarket has decided to raise the price of a plastic bag up to 30p a bag. that is about 36 cents in the us. we want to know whether you think this is a good idea and where that helps the environment. you have been tweeting in droves. david says they should change their packaging
instead of shifting the blame onto the consumer. we showed what they do with watermelons. yes, they have slices of watermelon and plastic wrapping, which is crazy. many supermarket chains in canada have banned plastic bags altogether, says bill. some voluntarily, some in response to local legislation. you have to take your forever bag or do without. carolyn says, taking a different view, that 30p is terrible, 10p is fine but 30p? what do you think? i'm in line with the first comment. if you are paying for a plastic bag, but then you go into the supermarket and they are covering things and they are covering things and they are covering things and they are covering things in plastic anyway, it feels contradictory to pick up an apple that has two there a plastic round it, but as far as charges are concerned, the higher the better, or com pletely concerned, the higher the better, or completely remove the plastic bag and by your bank for life.
completely remove the plastic bag and by your bank for lifelj completely remove the plastic bag and by your bank for life. i think they should remove them, why even charge for them? what is 30p on your shopping if you have already spent £20? that shopping if you have already spent £20 ? that is shopping if you have already spent £20? that is fair enough. in terms of the watermelon being covered in plastic and individually sliced, they also sell whole watermelons. that is the thing. it is up to the consumer to walk another ten feet, another five metres and to choose something else. but unless you are jennifer graham dancing, carrying a watermelon can be quite prohibitive! patyrick swayze at the end of the line, carrying that watermelon! you can dance your way out! that's it for now. have a lovely thursday. see you again soon. goodbye.
good morning. there is a little bit of rain in the forecast. for many, going into the weekend and bank holiday monday, it is going to warm up. we have not seen temperatures getting up to 30, for a good few weeks now, and the reason for that is high—pressure slowly extending its way west. keeping these weather systems just at bay towards the north and west. with that area of high pressure in the south and south—easterly wind, it will bring in that warm air. i mentioned a bit of rain. that's mainly in northern parts, northern ireland, southern scotla nd parts, northern ireland, southern scotland and northern england. that will slowly ease off, and may continue for a time in cumbria. rain will continue to spread north, heavy
at times in the west of scotland. further south and east, dry and bright sunny spells. and it will feel warmer compared to yesterday. maximum temperatures for many getting into the 20s, 25 in the south—east, 17—19 further north and west. that rain continues to spread northwards, but there will still be lots of rain in the west of scotland. some high rainfall totals going through into friday morning. temperatures not falling, at around 15 celsius, quite a warm night into the end of the week. by friday, rain continues to edge northwards. gradually clearing away and for most of the uk, a dry day again with lots of the uk, a dry day again with lots of sunshine, especially for england and wales and especially the further south you are, with temperatures rising even further, getting up to 27 degrees, and temperatures into the 20s in scotland and northern ireland. into the weekend, a week where the system out to the west,
but high—pressure starting to take influence across the uk. bringing you that warmer air. during saturday, lots of sunshine across england and wales. clear blue skies, a sparkling day. some rain to the west of scotland and northern ireland, but even here, temperatures into the 20s. getting up into the high 20s by this point on saturday, even 30 celsius in the south—east. sunday, lots more sunshine to come, temperatures into the high 20s for most of england and wales and even across scotland and northern ireland, and by bank holiday monday, coming down a notch, but still in the warm if not hot category. that's it from me, goodbye.
you're watching bbc news at nine with me, carole walker. the headlines: ahead of talks in paris, the french president, emmanuel macron, warns boris johnson that reopening the brexit deal is not an option. the prime minister has told european leaders they have to ditch the irish backstop we do need that backstop removed, but if we can do that, then i'm absolutely certain that we can move forward together. the wait‘s over for 700,000 students as they get their gcse results this morning. and i am at andiam ata and i am at a school in shropshire where about 100 pupils will be