tv BBC Business Live BBC News February 12, 2018 8:30am-9:01am GMT
this is business live from bbc news with ben thompson and samantha simmonds. london city airport has been closed after a world war two bomb has been found nearby in the river thames. live from london, that's our top story on monday 12th february not cleared for takeoff — thousands of passengers will be affected as all flights are cancelled at london's city airport. we will have the details that you need to know. also in the programme: barclays bank is charged by britain's serious fraud office over a loan to the state of qatar in 2008. and it is a new week on the market and this is how the numbers look... investors keeping a very close eye on inflation and we will explain why. and we'll be getting the inside track on the man who's business is a bit of a mouthful — with the boss of of a mouthguard firm that supplies
the england rugby team. and remember you can get in touch with us, about any of the stories we're covering this morning. just use the hashtag #bbcbizlive. hello and welcome to business live. it isa it is a busy show, so let's get started with news that... london city airport has been closed after a world war two bomb was found nearby in the river thames. the royal navy are removing the device. the airport will be shut all day and all flights have been cancelled, affecting up to 16,000 passengers. last year, more than 4.5 million people used london city airport, which is close to london's financial district. our news correspondent andy moorejoins me now. welcome. this is the closest airport to the city of london. 16,000 people
use it everyday. tell us about how many will be affected. 16,000 people will be affected today. something like 200 flights. the airport is used a lot by the business community. a lot of people would have been flying to go to work at ca nary wharf have been flying to go to work at canary wharf or in the city. this world war ii bomb was found early yesterday morning. the work at the airport continued as usual. the airport continued as usual. the airport closed last night. the decision was taken to get rid of the device. an exclusion zone was declared, about 200 metres or more. roads were closed, some homes were evacuated. the operation to get rid of the bomb has been ongoing overnight. question is, how long will it take? for the rest of the day, all flights in and out cancelled. some airlines are making alternative arrangements. city jet, for example, which flies between
dublin and london city airport, they are diverging quite a lot of their flights to london southend airport. if you were due to fly, contact your airline, see if there are any alternatives. the bomb was discovered the early hours of yesterday morning. the airport was closed until last night. any questions being asked about whether that was a wise move, given it has been closed all day today? while it was left alone it was ok. when the operation started to try to remove it that is when it becomes dangerous and that was when the decision was taken to and that was when the decision was ta ken to setup and that was when the decision was taken to setup this exclusion zone. it was actually found during routine work to expand the airport. they are developing the airport. it was found, we understand, by people working on the construction site yesterday morning. but it is only when you tried to remove it that it becomes potentially dangerous. as you say, hopefully it will be sorted in the next few hours, but all of people affected are advised to
contact their airline. thank you very much, andy. that you to date with another story that has broken this morning. —— let's bring you up to date with. the uk's serious fraud office has charged barclays bank plc with "unlawful financial assistance" related to billions of pounds raised from qatari investors in 2008. we will get more on that with our correspondent andrew walker little later. let's take a look at some of the other stories making the news. up to $5.5 billion of criminal money in europe is being laundered through cryptocurrencies, according to europol. the agency's director has told the bbc that regulators and industry leaders need to work together to tackle the problem. the warning comes after bitcoin's value halved in recent months a landmark inquiry into wrongdoing among australia's banks and financial services has begun. australia's banks, which are among the most profitable in the world, have been accused of customer exploitation and corporate fraud among other scandals. the state of new york has filed a lawsuit against harvey weinstein, his brother and their production company alleging the company's executives and board failed to protect employees from mr weinstein.
the lawsuit comes four months after the hollywood mogul‘s career ended in disgrace over allegations of sexual misconduct from more than 100 women. the uk's serious fraud office has charged barclays bank plc with "unlawful financial assistance" related to billions of pounds raised from qatari investors in 2008. we will get more on that with our correspondent andrew walkerjoins us now. give us the background on this. let's get back to the financial crisis. it was 2008. british banks we re crisis. it was 2008. british banks were under serious pressure in the financial markets. lloyds and rbs both needed bailouts, injections of government funds. barclays was predictably, you might say, keen to
avoid that. they managed to find some money from private investors, particularly in the middle east, associated with the state of qatar, to put money in so that they were able to get through the whole episode without a government bailout. what has been alleged is that a loan made at the same time, by ba rclays, to that a loan made at the same time, by barclays, to the state of qatar, a bit over £2 billion, was used directly, or indirectly, to buy those shares in barclays. that constitutes something in the company's constitutes something in the compa ny‘s legislation which constitutes something in the company's legislation which is called unlawful financial assistance. in the great majority of cases, it is prohibited, basically. there are conjugated circumstances in which you can do this kind of thing, but the general principle is you may not lend money to an investor to buy your own shares. and thatis investor to buy your own shares. and that is what barclays bank is being accused of. the wider holding group has already been charged. would you explain the significance? some may
remember that barclays was charged injune of remember that barclays was charged in june of last year. that was the holding company. this time it is the bank itself. that's right. the holding company was charged last summer. holding company was charged last summer. along with four executives. including sirjohn vardy, the former chief executive. there are a number of charges that were made on that occasion, particularly in relation to the holding company, the specific charge of unlawful financial assistance is the one that is being put in addition against barclays bank, the actual banking operation. there is the possibility of very large fines. barclays has been trying to defend itself. thanks very much. alibaba's entertainment arm has signed a deal with walt disney to show thousands of its animations on its china streaming service. the deal comes after disney shut down its own streaming service in 2016. monica miller is in singapore
with more on this. monica? the chinese are about to get theirfill monica? the chinese are about to get their fill of monica? the chinese are about to get theirfill of winnie the monica? the chinese are about to get their fill of winnie the pooh and elsa from frozen. this is a big deal with disney. aliba ba elsa from frozen. this is a big deal with disney. alibaba did not say how much this would be. but it would be streamed on its entertainment arm. it will release more than 1000 disney episodes. this deal comes after disney has been trying to get into the mainland. they had a venture which opened in 2016. it was the compa ny‘s disney life venture which opened in 2016. it was the company's disney life online content deal. but it only lasted about five months. after the operation got up and running. it is
unclear why authorities pulled the plug on this. they are hoping that this time they have better luck. just to give you an idea ofjust how large the audience is, it has a biggerfollowing than large the audience is, it has a bigger following than netflix, large the audience is, it has a biggerfollowing than netflix, which as of 2017 had 70 million members. the chinese video streaming platform had 580 million devices. alibaba it already has a similar lysine deal with warner brothers, paramount, fox, nbc universal, and sony pictures. amazing when you see the scale of the operation. in asia, markets getting back on an even footing after the volatility of last week. south korea and china gained 1.2%. the concern is what it means for inflation. inflation is a real issue for the markets. in europe, trade started like this,
but it's commodities, particularly oil, that are seeing the strongest gains right now, and with more weakness for sterling, that could help prop up the ftse. we could soon see oil back above $60 per barrel. that would keep investors busy right 110w. it's also a pretty quiet week on the economics front, apart from inflation figures on tuesday. brexit will dominate too — prime minister theresa may and some senior brexit cabinet minister including borisjohnson and david davis will give speeches on the post—brexit relationship. that's after calls for much more clarity on what happens next. will we get it? wait and see. more on that in a moment, but first yogita has the details about what's ahead on wall street today. after a turbulent week in the markets, stocks could be further impacted by economic numbers that are due to be released in the coming days. on tuesday a key measure of inflation, the consumer price index, will be out. this is what the federal reserve looks at when it makes monetary policy decisions.
and a big rise in inflation could add to fears that interest rates in the us will be raised more rapidly than what was anticipated. that had been the main trigger for the market's fall over the past 10 days. so traders will be watching nervously. in corporate earnings this week, rivals pepsico and coca—cola will be revealing results. both companies are expected to report that profits grew even though sales didn't. —— even though sales dipped. canada's bombardier will also be releasing earnings. that comes after the plane maker unexpectedly won trade dispute in the us against boeing. joining us is david bloom, global head of fx strategy at hsbc. talking about inflation, looking to the week ahead, big figures from the uk and the us, what are we expecting? the market meltdown started when the average earnings numbers in the us were worried about
wages picking up and worried about inflation. this is the week where all of our worries come to fruition. we have the uk numbers, the bank of england has already indicated it wa nts to england has already indicated it wants to raise rates. and the us numbers where the market is saying, is the third behind the curve? they haven't raised rate enough. 0h! you can feel the tension in the market already with these inflation numbers coming up. is that what they actually say, oh! ? ithink it was worse than that over the last couple of weeks. hopefully it will just worse than that over the last couple of weeks. hopefully it willjust be like a of weeks. hopefully it willjust be likea ship of weeks. hopefully it willjust be like a ship in the night. the numbers will come out, as expected, and markets can calm down a little bit. we are seeing inflation rising 01’ bit. we are seeing inflation rising or staying high in some countries, yet changing policies, it takes time for that to filter through to the numbers. months down the line there isa numbers. months down the line there is a problem. inflation is like looking in your rear—view mirror,
you are looking at what is happening behind you rather than in front, and thatis behind you rather than in front, and that is why there is concerned. because once inflation picks up it is too late. then you have to push interest rates up, crash the economy, then inflation comes down, nobody wants to be crushed. and you don't want peaks and troughs. exactly. what is going to worry most people is this idea that interest rates are going to go up. we have heard that from the bank of england. but the concern is, how far? you are 100% right. i but the concern is, how far? you are 100% right. i was talking about markets. they are forward—looking. for people in the uk, higher rates mean higher rates, it means your mortgage payment goes up. most people have borrowed on overnight rates, and once it goes up, it can hit you in the pocket. but hopefully that's enough. a little bit of touching the brakes sometimes, that's fine, but it is when you slam
on the brakes that you really start to feel the pain. inflation picks up too strongly, the bank of england will have to do something, and that's painful. let's hope that it is just that's painful. let's hope that it isjust a that's painful. let's hope that it is just a little touch on the brakes, everybody can handle it, and we are going at a beautiful speed. no emergency stops. no oh! again. exactly. you do not want an emergency handbrake. great to see thanks very much. still to come... a winning smile: how one former dentist is tackling tooth loss amongst top sportsmen. you're with business live from bbc news. aldi has been stealing market share from its uk supermarket rivals, and now it's gone one further.
the discounter has come first in a customer satisfaction survey, pushing last year's winner waitrose into fourth place. gareth shaw from which?, is here to tell us more. we talk a lot about this retailer but it's clearly doing something right. absolutely. it's been stealing market share along with little for the last few years but not customers saying they are so happy to shop there. they say it's like a happy to shop there. they say it's likeajumble happy to shop there. they say it's like a jumble sale and a little shabby but they have great quality and great prices. —— lidl. waitrose has dropped from first position last year down to fourth and it's all about value for money. for about waitrose? why have they been pushed back. people feeling the pinch, inflation rising and food prices rising, they are looking to get
value for money, not bad things in the waitrose survey, people logged the waitrose survey, people logged the stores, they are clean, staff excellent but they don't feel that they are getting value for money that they are getting from the likes of aldi and lidl. what about sainsbury‘s? pushed back into the ninth but they moan about the methodology. sainsbury is finished last in the survey, people feeling ambivalent about the experience, some of the feedback we had, their experience is dull, well—stocked but it's not great and a little on the pricey side and that's something sainsbury‘s will have to take on board along with the other big supermarkets which finished right at the bottom. gareth, nice to see you and thank you. thank you for explaining all of tesco telling us about the pressure to split up its business, keep your eyes peeled. 0n the website, the story got my eye, the website, the story got my eye, the idea about shared parental
leave. is interesting to find out why, whether businesses support that or not. plenty more on that. do stay with us. you are watching business live. london city airport will be closed to flights today, and unexploded bomb discovered. 16,000 passengers affect that, going to carry on into this evening, they hope they will have resolved that i then. london city airport the reason we are talking about it. "
city airport the reason we are talking about it." in financial heartland, a lot of disruption for business passengers. a quick look at the markets. the arrows tell the story, optimism coming back in after the roller—coaster ride last year. the ftse doing well, if all in the value of the pound. some details about what will happen with the trading relationship with the eu after brexit and we will hear from the prime minister later in the week. after the battering that the markets took last week, our next guest might have come in pretty useful. we're talking about staying safe playing tough sports — and one firm that's got a novel way of keeping teeth intact. in the united states alone between 650,000 and 1 million teeth are lost in sports related accidents each year. we say lost, we are talking about them being knocked out. and a large portion of those could have been avoided if the athlete had been wearing a mouth guard. one british dentist got so fed up with treating sports related toothloss that he quit his practice
in 1997 and set up a company called 0pro, manufacturing custom made mouthguards initally supplying schools. today, its products are used in schools, clubs and professional sports teams around the world, including the new zealand and england rugby teams. dr anthony lovat the founder of the companyjoins us now. a warm welcome to you and thank you for coming in. a huge number, you can't believe people do not protect themselves better. tell us how you got started. good morning, it stemmed from an episode about 21 yea rs stemmed from an episode about 21 years ago, i was watching my daughter play a match, a lacrosse match involving a stick and a ball, a ball flying around at head level. a traditional dishes sport. the defender defending my daughter tried to intercept pass, she intercepted at with her face, to intercept pass, she intercepted at with herface, she to intercept pass, she intercepted at with her face, she fell to the ground, teachers parents came around, we spotted that they too had
come out, being a dentist, found the tooth, godard cleaned, re—implanted it into the socket, to care for emergency treatment but what was interesting, after that, isaid emergency treatment but what was interesting, after that, i said why weren't you wearing a mouth guard, they aren't mandatory at your level in the sport, and she said, i do have a mouth guard, i showed it to the referee and it's so loose and painful to where i put it in my sock so painful to where i put it in my sock so then i start thinking, is there something i can do to prevent injuries rather than treat them afterwards and one thing led to another and here we are 21 years later with mass guards across the globe, very thin, very protective and worn by all levels of sports player. when we met this morning there was quite a niche or a market there was quite a niche or a market there that wasn't tapped already, explain what you are doing differently. —— mouth guards. you do it differently. we got to the point,
we created mouth words you can buy off—the—shelf and you can fit them yourself but the key thing about a mouth guard, every one we make will be sent and protective, we make them right across the range. let's have a look. how does it, you can't make one individually for each person? that wouldn't be practical in terms of costs or how does it work, i am not putting it in my mouth, how does it mould itself and how do you make this fit? what you are holding is the latest innovation that is being released at the moment. a combination of a custom mouth guard made at art laboratories in england and one you put in boiling water, that particular one you put in boiling water, you utilise the system we have here, you put it at
around the mouth guard, bite together it compresses the guard and fits it tight. it mulls to the specific mouth. and that allows us to make individual, this book mouth guards to send around the world for individuals to fit them. let let's talk about how you came from one mouth guard to supplying rugby teams around the world, supplying hundreds of pupils, it will not an overnight success , of pupils, it will not an overnight success, you have been working at this quite some time. 21 years on from where we started, it was to a degree and overnight success, in the early days we limited things to custom mouth guards in schools and the need for them was well received by teachers, it grew fast as a supply line to schools but then we came out for a range that said as well or not quite as well but closely to a custom mouth guard which you can buy in a retail outlet
and that allowed us to move forward into a global stage, we havejust teamed up with the ultimate fighting championship, the murderous promoter of mixed martial arts around the world, we expect mouth guards to find their way into 200 countries that indulge in combat sport. time is tight, turnover increasing from 250,019 86, two millions. it is astonishing. they go from £5 from the least expensive to between 65 and £70. who knew that you could make six and three quarters million pounds from that? that is why you're doing thatjob! good to see you. let's ta ke doing thatjob! good to see you. let's take a look to the business changes. here's a quick reminder of how to get in touch with us. get involved in the business live
web page, we want to hearfrom you. you can get involved on twitter. and you can find us on facebook. business live, on tv, and online, what you need to know, when you need to know it. david has rejoined us. we knew this already. a lot of retailers telling us, a headline in the financial times. it's been a tough christmas for retailers, sword of going on into january. the conflict we were talking about earlier. you have what looks like a slowing economy but inflation is picking up. everyone is expecting the bank of england to be aggressive about that. you are getting stories coming out, the uk is expected this
sure to be one of the slowest of the cheap ten economies and this is a kind of story and sometimes you see housing market stories. meanwhile the labour market is tight and you are worried about wages. —— g10. if this is rocking consumer spending we would be concerned about how much the bank of england would raise rates but they are counterbalancing forces. will the golden age of tv reduce the first $20 million per show serious? i do not think my kids know what television is, it is on some kind of device for them, this is the new world. david, so good to see you. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. good morning. some of us have woken
up good morning. some of us have woken up to eyes this morning, particularly in northern and western parts of the uk but for many others, some good spells of sunshine today, snow showers continuing her early towards northern and western areas. you can see snow towards northern and western areas. you can see snow showers towards northern and western areas. you can see snow showers of the speckled nature of the cloud down towards the south—east. there will be clearer skies and sunshine as well. we will keep the sunshine towards the south and east, into this afternoon. further north—west, this afternoon. further north—west, this little blobs, snow showers continuing to feed into north—west england, western and northern areas of scotland. the cloud increasing just a touch in northern ireland but foremost, good spells of sunshine, feeling quite again, maximum temperature of 5—8dc. this evening and night, continuing with clear skies in central and eastern areas
but out towards the west, we will see rain, sleet and snow down to low levels in northern ireland, across scotla nd levels in northern ireland, across scotland and northern england, across wells, temperatures above freezing, frosty start in the south and east. focusing on this rain, sleet and snow, it could be disrupted during the morning rush hour across parts of wales, increasingly northern areas of england but more so towards central and, around the central belt, could bea and, around the central belt, could be a good covering of snow for the shower. there that in mind for the first thing tomorrow morning, setting off, as the rain, sleet and slow moves east, down to lower levels in the south and east there could be wintry flurries from time to time. in the west, looking drier and brighter into the afternoon. into tuesday night and wednesday, another weather system which will move its way in from the west, this time with the wind coming from the
south—west direction, it will not be quite as... snow across higher ground, turning back to rain, the mild are moving its way in. quite a where today for some of us on wednesday, ryder skies coming through in northern ireland. maximum temperature you notice in the south—west getting into double figures, maximum of 11 degrees, the start of the week still the threat of wintry weather. hello it's monday, it's 9 o'clock, i'm tina daheley, welcome to the programme for most of us who have pets our animals are beloved members of the family. but animal welfare campaigners have told this programme that dog theft is a rising problem in the uk. all i can hear him saying is the house has been broken into, the dog has gone. i was just screaming. we have a special report on the stress caused when a dog is taken and one owner's campaign
to get her‘s back. it's been nearly three years since the government launched its shared parental leave scheme to help dads take more than the statutory two weeks off when they have a new baby. but very few new fathers have taken up the offer, maybe just two percent of those eligible. we find out why.