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tv   BBC Business Live  BBC News  June 4, 2018 8:30am-9:01am BST

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this is business live from bbc news with ben thompson and sally bundock. no deal. china warns the us that imposing sanctions will force it to cancel trade talks. live from london, that's our top story on monday the 4th ofjune. members of the g—7 say a trade war with the us could be just days away — so will president trump buckle under the pressure? also in the programme... banks behaving badly — the largest civil penalty in australian corporate history for the country's commonwealth bank. we're live in sydney for the latest. and markets will keep an eye on that g—7 meeting — and what it could mean for world trade. they are currently optimistic ahead of that meeting. and would you fork out more
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than $500 for a pair of trunks? we'll hear from one firm which lets you design your own pair — for a hefty price — proving there's more to men's poolside fashion than budgie—smugglers or the mankini! also in the programme we will reveal the clever bins that cut food waste and save money — so how much do you throw away? are you changing your behaviour to cut down on food waste? send your comments use the hashtag bbcbizlive. hello and welcome to business live. china has warned the united states that any agreements reached on trade and business between the two countries will be void if washington implements new tariffs. talks between china's vice president and the us commerce secretary ended
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in beijing on sunday — without any new deals. last week, the trump administration said it will go ahead with plans to impose 25% tariffs on $50 billion worth of goods from china. this was after china had previously promised to import more from america to help reduce the $375 billion trade surplus in goods it has with the united states. meanwhile, this weekend, finance ministers from the g—7 nations expressed their anger with the united states over steel and aluminium import tariffs introduced last week. french finance minister bruno le maire warned that a trade war could begin in "a few days". president trump took to twitter on saturday and said the us had been "ripped off by other countries for years on trade". he argues steel tariffs will protect us steelmakers, an industry vital to national security. but canada's prime minister, justin trudeau, told nbc‘s "meet the press" that the justification was insulting. the idea that the canadian steel
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that's in military vehicles in the united states, the canadian aluminium that makes your fighter jets, is somehow now a threat. the idea that we are somehow a national security threat to the united states is, quite frankly, insulting and unacceptable. that was justin trudeau, the that wasjustin trudeau, the prime minister of canada. expert in chinese foreign policy and head of china foresight at lse ideas, dr yujie, is with me. nice to see you again. summing up some of the recent tit—for—tat comments, firing from washington and beijing and vice versa, but what do you make of where we are at the moment with this trade war scenario? i think the rest of the world should know by now, with trump, expect the
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unexpected, and he will never be satisfied with any deal he's trying to make. two weeks ago he was talking about putting a trade war on hold, and suddenly he flip—flops, taking the decision to further impose punitive tariffs on china. this gives a sense in china, can we really trust trump as a negotiation partner asked you what you say, flip—flopping one—minute very conciliatory talk, china promising to buy billions of dollars of goods and services and it looks like we are heading out of a war zone. now we don't know where we are. what's the chinese reaction to this and how does it read between the lines? judging from the statement issued yesterday, there is a tariff reduction and technology changes in the technology sector. i think both
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sides are emphasising tariff reduction now. but if anything satisfying happens in the next round, but perhaps a real trade or could blown up support how relaxed are you about the possibility of trade war? . six out of the g-7 are you about the possibility of trade war? . six out of the 6-7 have come together unanimously to say, and wejust come together unanimously to say, and we just heard from justin trudeau saying this is potentially extremely damaging. it's six plus one. that's rather unusual in their history since 1945. we are very concerned because there is only so much china can buy, so if china buys so much china can buy, so if china buys so much for more from the united states, it will damage the global alliances that america has, the global liberal alliance is america has like the g—7 members and the european union. —— the global alliances america has. always good
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to see you. thank you for coming in once again to give your expertise on this. we will keep a close eye on that story through the week. let's take a look at some of the other stories making the news. accor hotels says it's looking to buy part of air france klm. the french government is reportedly mulling a sale of its 14.3% stake in the national carrier. the airline has been hit by strikes and is struggling to stay profitable. walkouts have cost the airline around 400 million euros so far. there are reports that italy's largest bank, unicredit, could be looking to merge with france's societe generale. the ft says there's been no formal approach, but the italian lender is trying to become a cross—border european bank. both banks are trading higher this morning. the owner of clydesdale and yorkshire banks — also known as cybg — is sweetening its takeover bid for virgin money, with an all—share offer valuing the lender at $2.3 billion. a deal between the two firms would create the uk's sixth—largest bank. so many stories out there today,
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it's hard to cover them all. and the technology just isn't working! it's hard to cover them all. and the technologyjust isn't working! so i can't show you! we will come back to this later. it's the largest civil fine in australian corporate history. australia's commonwealth bank has agreed to settle claims that it broke laws against money laundering and financing of terror. let's go live to sydney. our correspondent phil mercer has details. there seems to be a real crackdown down under at the moment. this is the latest. with good reason, the australian government last year ordered a royal commission into the finance industry and alleged misconduct in the sector. so far we have heard breathtaking stories of
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banks charging that customers for services after they have passed away, and today we had news that the commonwealth bank has been agreeing to pay a fine of $530 million for breaching australia's money—laundering and terrorism financing legislation. the bank says it didn't mean to do its actions, they went to deliberate, but it says it takes its mistakes very seriously. at the heart of this case was a so—called smart cash machines that allowed customers to anonymously deposit and transfer money bust up for its sins, the bank has agreed to pay that enormous fine. a pretty hefty fine for the commonwealth bank. let's show what the markets are doing. staying in that region, asia, tokyo and hong kong, managing to stay upbeat thanks toa kong, managing to stay upbeat thanks to a good jobs report from the us
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and also stronger manufacturing data that gave wall street a boost on friday. in europe, all eyes on that upcoming g—7 meeting later in the week. expect to hear some pretty blunt responses from members of the g-7 blunt responses from members of the 6-7 to blunt responses from members of the 6—7 to wards president trump's decision to implement tariffs on steel and aluminium on canada, mexico and european union. the big question so far is whether that's just a starting point to negotiation, or whether it will be a full—blown trade war. we will talk about that in a moment. first, we can head to wall street where paul blake has the details on the day ahead. us financial markets are gearing up for a busy week on monday. there's a lot to look out for in economic, government, and corporate news. in economics, before the market opens, there is significant data to digest in the factory 0rders report for april. it's likely to show a slight fall in the value of us factory orders compared with a year ago. in corporate news, monday is the start of apple's worldwide developers' conference in sanjose, california. it's one of the biggest events
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on the tech calendar, and often generates news from and about america's most valuable company. and, as we've heard, the explosive subject of tariffs will stay sharply in focus as we reach the end of the us commerce secretary's trip to china and head towards the summit of 6—7 leaders in canada later in the week. joining us is jane foley from rabobank. senior currency strategist, lovely to see you. paul was talking about what's happening on wall street. looking at the markets in europe with ben, and it's looking like a strong close in asia, japan and hong kong and elsewhere. i'm nervous, how do you feel? i think the markets are looking back today, because they had better data on friday from the us. the payroll was released for the
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previous months, and only official data we get is from previous months. looking ahead, this is where we worry looking ahead, this is where we woi’i’y more looking ahead, this is where we worry more about the trade outlook, not just from the us, worry more about the trade outlook, notjust from the us, but this is a global situation. also in europe. today we had turmoil in europe because of the politics, in italy and spain, and it seems some of those fiscal cracks have been opened again. we had wallpaper over them because we had strong growth that diverted attention, but those cracks are beginning to show again. there isa are beginning to show again. there is a lot to worry on that in the months ahead. i touched on the idea president trump could come out fighting. he sets a pretty tough line. we have seen before that he says, you will not negotiate, but you read the small print and there are exceptions and exemptions. are we expecting the same with this proposed trade war? some of the optimism on the markets today is perhaps because they see through what trump is trying to do, and that's to press hard and press hard and then perhaps to come back and make a compromise. have the markets
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figured it out? what trump is trying to do with europe, certainly, is try to do with europe, certainly, is try to get them onside and use europe to pressure china together. that's something that's beginning to happen. and the impact on the currency, the dollar? it's really strong. from february to the dollar has been going, and that's because the us economy has grown strongly, and it seems everybody else has taken a step back from the growth we saw last year. jane will return with some interesting stories later. smart bins and food waste. eco—living and all of it. what your partner does and doesn't tell you about their money. still to come — there's more to men's poolside fashion than budgie—smugglers or the mankini! and what is a budgie smuggler? i'll
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explain later. we'll be hearing from one firm which lets you design your own trunks — but at a cost. you're with business live from bbc news. if you're trying to travel by train in the north then you are keenly aware of this story. it has been chaos. last week the problems were in the south. this week it's the north. northern trains has cancelled 165 services until the end ofjuly after new timetables caused major disruption. many people are contending with the new timetables for the first time today. joining us is steve chambers, public transport campaigner at campaign for better transport. northern trains says they have made critical changes to their timetable and it had to be done. what's your ta ke and it had to be done. what's your take on this? the railway industries had a long time to prepare for these
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changes. it's a huge timetable changes. it's a huge timetable change all happening in one go. really, they needed to get the drivers and staff they needed in place on the first day of the change. it's not entirely their fault. there was huge infrastructure projects involving electrification that didn't happen on time. that's the responsibility of network rail and the wider rail industry. really, these plans were put in place a long time ago and it should have all been ready for day one of the timetable. why do we get these things badly wrong? greater manchester mayor andy burnham says people should get their money back, cut the fares, because they are not getting the service they are not getting the service they paid for. in london we have seen rail devolution, the london 0verground model seen rail devolution, the london 0verg round model has seen rail devolution, the london 0verground model has shown much better performance and implementation of projects. we would like to see more of the regions, as is happening in wales and the west
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midlands, seeing those local mayors having more control and specification of the services. and we also need to see something that is accountable to the voters. an operator error, i got it to work! it wasn't technology, it was me! the international air transport association air summit is under way in sydney. loads of comments coming out about the airline industry and some of the challenges facing them. take a look at the business live page on the website for more details. the top story today, china warns the
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us that any agreement on trade would be void if the us pushes forward with plans to impose tariffs on steel and aluminium. we might get more clarity on that at the g—7 meeting this week. europe has now been going for around 47 minutes. all very strong following a good close in asia earlier today. it all relates to the good jobs report from the us on friday. they are ignoring fears of a possible trade warfor friday. they are ignoring fears of a possible trade war for now. that is for now, so we will get more details. we know fashion is big business. but who is buying? if the latest statistics tell us anything, it's that men, not women are spending more. research says the market for menswear will grown more for menswear will grow more than women's clothes over the next two years. by 2020, the value of the uk menswear market is expected to hit $22 billion,
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while womenswear is actually forecast to shrink by 0.2%. and it's thanks largely to the internet. a study from business insider found that 40% of male shoppers said they would "buy everything online". well, we're joined now by the founder of one company tapping into that market — adam brown — from swimwear brand 0rlebar brown. welcome to the programme. you were not in the fashion industry at all prior to starting this company. you did a three—day crash course. tell us did a three—day crash course. tell usa did a three—day crash course. tell us a little bit about you before we launch into your business. us a little bit about you before we launch into your businesslj us a little bit about you before we launch into your business. i used to work in the voluntary sector, for eight or nine years. i used to do majorfundraising for eight or nine years. i used to do major fundraising for charity. i became a portrait photographer for six or seven became a portrait photographer for six 0!’ seven years, became a portrait photographer for six or seven years, and worked for a range of magazines as well as private clients. i got the message that was going nowhere when i was
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photographing a kitten on a dining table. i was a0 years old and on the lookout for something to do. on a particular holiday i was staying in a hotel and went for lunch and i got turned away from the restaurant for lunch. because of what you are wearing? yes, i was wearing my swimming shorts. i thought of the idea, i didn't want swimming shorts, i wanted a short i could swim in. you might have a great idea on holiday, but turning that idea into reality is very different. we're talking about i! reality is very different. we're talking about 11 years ago. the idea was in 2005. i saw the first pair in 2006, but when you renovate, i had to find my fabric supplier, my factory, get the stuff into a warehouse. i treated it as taking each problem as it came, so i spent 18 months doing market research,
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which involved shopping. ifound my fabric spire and factory in north london. i made 1000 pairs and put it into a storage unit. —— my fabric supplier. it's a huge advantage for us supplier. it's a huge advantage for us now, that's where we started. this came after a three—day course? it was a three—day start your own fashion business course in west london. it's the sort of thing you see advertised on the tube and think it's rubbish! they are great! fundamental things about season, critical path and margins. basic things that haven't even crossed my mind before. i did a one—week summer school course at saint martin's, so i could get information. you must have had a lot of self belief as well. you put a lot of your own money into this initially and you had no idea people would actually buy your shorts. it was a leap of faith. i was at a time in my life where i was looking for something to do. my friends openly laughed at me,
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as friends do. but i had some savings. i took the view that even ifi savings. i took the view that even if i sold at cost on a market stall if i sold at cost on a market stall if it didn't work then i was fairly safe. at what point did you realise in the journey that it was going to work and people wanted to buy them? we launched in 2007. for the first two years we launched in 2007. for the first two yea rs it we launched in 2007. for the first two years it was just me and i we launched in 2007. for the first two years it wasjust me and i did all customer service. the fundamental thing, when i saw repeat customers, people coming back, that i knew they liked the product. the big turning point was when we got into selfridge's. for those who don't know, selfridge is a very well—known department store on 0xford well—known department store on oxford street. so, it wasjust seeing the footfall, once the number of people that got to see the product, and the sales started happening, that was a fundamental moment for me. is a budgie smuggler a complete no—no? moment for me. is a budgie smuggler
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a complete no-no? they're fine, briefs. is that what they are, ? a quick word on who wears your stuff. like all brands, it's about who is seen like all brands, it's about who is seenin like all brands, it's about who is seen in it and not seen it. i would ask you to name names, but i suppose there are people you prefer not to see in them? we've had fabulous celebrities wearing them, and we thrilled about that. you also have people who are maybe less thrilled when that moment happens. but it results in people getting to know about the product. the fundamental thing is when you see people on the beach, and you see people wearing it. and i have seen your posts around the world! that's the thing, when you go to the beach and see 18 pairs. adam, good to have you on the programme. really interesting. enjoy the summer. the un estimate that globally we throw away one trillion dollars
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worth of food every year. a lot of that waste comes from large catering operations, the kind you find in hotels, or cruise ships. but now we have the smart bin — as dougal shaw reports. this commercial kitchen in central london prepares 1500 meals a day. it provides catering for a museum and conference centre. kitchens like these typically throw away 20% of the ingredients they buy. some are thrown away as trimmings, even though they are edible. and sometimes food ends up in the bin simply because it's not needed after all. to stop this happening, this kitchen has been using a new piece of technology, which can simply be connected to a normal bin on scales. this is what's known as a smart bin. kitchen staff use it like a supermarket self checkout. the idea is to keep an accurate, digital record of the food being thrown out. this helps the head chef make more informed choices. how many tonnage is saved through
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using this? by keeping tabs on exactly what kind of food is being thrown out, the chef can adjust his orders on ingredients, and also improvise whole new menus based on what was previously being thrown away. in an operation where you make a significant amount of your food in advance, you can typically cut food waste in half. do people actually have time on top of everything else to catalogue the stuff as they are putting it into the bin? they do. to start with, it takes a little while to get used to the bin system. it's about familiarising yourself with where the buttons are. smart bins, really clever. jane is back. what do you do with your food waste ? back. what do you do with your food waste? 0r back. what do you do with your food waste? or do you try not to waste it? that's the first thing, try not to buy too much, cut down on the things you throw out. and try to recycle as much as you can. i've got a compost heap. and the council i
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worked in recycle sloop that gets taken away separately. that's a good thing. and packaging is my bugbear. i try to buy stuff that doesn't give you too much. a lot of you getting in touch. 0ne message says i try to buy small amounts are specially perishable. don't get buy one get one free because you never use them. it's an expensive gimmick. by what you need. sometimes it's really hard to get small amounts though. that frustrates me. vijay says check the quantity and taste first if possible, but orderjust what quantity and taste first if possible, but order just what you need. john says to buy locally. keith points out salad products are the worst because you use big bags of salad and you end up wasting far too much. thank you for those messages. brits are in the dark about partners‘ finances. this is fascinating. 25% of people are not certain about their partner‘s finances, so if somebody was to
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suddenly die, they wouldn‘t know about their assets or what is where and where to find things. that is a bit of a fright, but i‘m not surprised. 0ne bit of a fright, but i‘m not surprised. one of the interesting things it says is that increasingly people keep finances separate, but people keep finances separate, but people who are more likely to keep their savings secret are women. that‘s interesting. in an environment where there is more divorce, people are worried about the breakdown of a relationship adopted will cost them. i think that‘s one of the reasons why people increasingly keep their finances separate. —— breakdown of a relationship and what it will cost them. i have no idea about his finances. as my work wi-fi should be more open! we have talked about budgie smugglers and all sorts today. we will see you soon and do it all again tomorrow. to start the working week, something
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cool and cloudy for central and eastern england. high pressure in the north with low pressure in the south. we have picked up a north, north—easterly feed dragging in a fairamount of north—easterly feed dragging in a fair amount of cloud to start the working week and also patches of mist and fog around first thing. the brightness today will be in parts of wales and south—west england and later into southern england. starting to see sunny spells developing and perhaps some sharp showers in the afternoon. cloud in central and eastern parts of england and perhaps in the north and east of scotland. in scotland and northern ireland, sunny spells developing but the chance of thunderstorms in south—west scotland and northern ireland this afternoon. hit and miss but they could bring torrential downpours. maximums of around 20 or 21 in london. yesterday we saw 27 in
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london. this evening and overnight, the showers will tend to die out with more low cloud spreading in. mist and fog developing again and the cloud could be thick enough for sunspots drizzle but a fair amount of dry weather to come. it will be feeling cooler than the past nights and an overnight low of 6 degrees in the north—east. 11—1a in the south. 0n the north—east. 11—1a in the south. on tuesday this feature could bring showers into the far south as we move through the day. clouds to begin the day on tuesday. i think it will thin and break, shifting south—west. we will see more in the way of sunshine developing as we move through the day, but perhaps lingering in south wales, south—west england and south england. the chance of heavy showers in northern ireland in the afternoon. temperatures tomorrow in the upper teens and low 20s. cooler in the
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south—west where we see cloudy skies. 0n south—west where we see cloudy skies. on wednesday and thursday, more dry weather, sunny spells, and we start to see temperatures recovering into the low 20s. cloudy and cool start to the leak, but we will see more sunny spells and temperatures starting to recover. there is the chance of heavy and thundery showers towards the end of the week, but there is uncertainty, so the week, but there is uncertainty, so keep an eye on the forecast. we‘ve been reporting on his case for the last few years — now in his first tv interview since being released from an ethiopian jail last week, british national andy tsege is here live in the studio; he‘ll tell you about his kidnap from an airport in yemen before being taken to jail where he was incarcerated for four years and sentenced to death. he thought he‘d never see his three children again. a new crucial stage in the grenfell tower inquiry begins today with the focus shifting to how the fire started and spread so rapidly. five expert reports will be published during this phase, after the inquiry opened with seven days of tributes to the tragedy‘s victims. and i am ripped up to pieces.
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