tv BBC Business Live BBC News June 7, 2018 8:30am-9:01am BST
this is business live from bbc news with maryam moshiri and sally bundock. where will the buck stop? a rising us dollar piles the pressure on emerging economies from india to turkey to argentina. live from london, that's our top story on thursday 7th june. the strength of the dollar is wreaking havoc around the world, but does the us central bank have a duty to protect more vulnerable economies? also in the programme — who needs iran when you have asia? boeing tells us it's flying high — despite the ban on its multi—billion dollar airliner deal with tehran. something wrong with screen? yes, it's the ftse, a technical glitch there. and we'll get the inside track on the latest efforts to address
gender inequality in silicon valley. also, what you think about emirates airline‘s proposals to test planes without windows? do you love gazing into the distance during yourflight, or would you prefer a more virtual view? let us know. just use the hashtag bbcbizlive. hello and welcome to business live. we start with the rising us dollar. it has been gaining in strength against currencies around the world on the prospect of more rises in us interest rates. and that has been piling the pressure on emerging economies, from india to turkey to argentina. let's show you the details. this is the dollar index, a measure of the greenback versus a basket of currencies. it's up around 5% since the end of january,
and over 2.5% just in the last month alone. it's bad news for emerging economies. why? they borrow in us dollars, so when the dollar rises, so do their debts and interest payments. that has all helped put emerging market stocks and currencies under pressure. turkey and india are among those hit, as the dollar has surged against both the lira and the rupee this year. the turkish lira has lost over 20%. there are, you can see what it has been doing, the turkish lira. the reserve bank of india was forced to raise interest rates on wednesday for the first time in more than four years. india imports most of its oil, which is made even more expensive by the falling rupee, pushing up inflation. last month turkey's central bank raised its main interest rate from 13.5% to 16.5% to try and stave off the fall in its currency. it meets again later and is expected to raise rates again.
the weak currency is stoking inflation. it's running at over 12% and becoming a big issue in elections due later this month. bacteria, sally. thank you. —— back to you, sally. with me is dean turner, economist at ubs wealth management. looking at some of the issues and figures it is quite clear the dollar is on the rise and has caused some chaos in turkey. what is your take on what has been going on? we have to understand the reasons for the rise in the dollar. is it fundamental or is it to do with investor sentiment? our sense is that the shark moved recently is to do with the risk of sentiment that has hit markets, as we are well aware the concerns around iran, as well as the trade dispute with the us at the moment, but ultimately,
whether this persists and continues to have an impact on emerging markets does depend on whether this trend lasts, and for what it's worth, our sense is that although we reavie dollar strength persisting in the short term, the factors underlying the dollar .2 weakness further out. device has not happened overnight. it has been a problem for the likes of turkey, argentina, other for quite the likes of turkey, argentina, otherfor quite some time the likes of turkey, argentina, other for quite some time —— underlying the dollar point two wea kness underlying the dollar point two weakness further out. many would look at those emerging markets and say, actually, you need to get off this reliance on the dollar on foreign money coming in, you need to look elsewhere for your stability. it isa look elsewhere for your stability. it is a very good point. one thing we have to understand, this isn't a very broad—based impact we are seeing across emerging markets. it is very focused on specific
economies, and they do have a number of fundamental structural problems, those economies. some dependents, as you suggested, on us dollarfunding. but for emerging markets as a whole, oui’ but for emerging markets as a whole, our sense is there has been a shift. we are in a different situation to where we were a few years ago, dependence on the dollar as a whole has shrunken, economic policies have improved but, yes, specific situations to mention, argentina and turkey being two of those. a very interesting story, thanks, dean, and we will keep an eye on how those currencies are doing across the bbc. we will indeed. let's take a look at some of the other stories making the news. department store chain house of fraser is to close 31 shops affecting 6,000 jobs as part of a rescue deal. if the plan is approved, 2,000 house of fraser jobs will be affected, and 4,000 brand and concession roles. the stores scheduled for closure include its flagship london oxford street store and will stay open until early 2019, house of fraser said.
two giants of the business world have called for an end to quarterly earnings guidance by companies. investment guru warren buffett and bankerjamie dimon say quarterly reports encourage a short—term outlook which hurts the economy. they made their appeal in an opinion column in the wall streetjournal. they say it also europe's big five football leagues generated a record 14.7 billion euros in revenue in the 2016—17 season, up 9% on the previous year, according to new figures from deloitte. deloitte said the financial results reflected a new era of improved profitability and financial stability for european football clu bs. let's go to sydney now where the airline industry is holding its annual gathering. guess who is there? i can't guess.
the wonderfrom down guess who is there? i can't guess. the wonder from down under! aaron heslehurst has been speaking to one of boeing's senior executives. he started by asking about the damage done by the change of us policy on iran, which was due to buy 80 boeing airliners worth billions of dollars. when it came to iran, we were always in a position where we were following and letting our government take the lead and when it came to booking those orders, to taking a look what was happening the market, we were very cautious. so we really didn't count on them in terms of production. so as those orders now are sidelined, it really is not going to impact how many aeroplanes we are going to produce in the near future. and of course picking up the slack for boeing will be asia, right? i mean, a huge, important market. incredible market, 40% of the world demand over the next 20 years. it's the biggest market in terms of economic growth, the biggest market in terms of growing in the middle class and a great market for new aircraft. we just saw a flight from london to perth, the first time, connecting great britain
to australia, the continent, using a boeing dreamliner 787. those of us from sydney, we don't want to go to perth — we want to go to sydney. will we ever see those sort of length in flight? well, i tell you, if you talk to qantas, they are working on it something they call project sunrise. we are working closely with them. in 2020, we are going to bring in new 777 to the marketplace. that aeroplane will have about 1000 nautical miles more range than any aeroplane flying today. but, frankly, it is not quite enough to get you from sydney to london so we are working with them, innovative ideas to see how we can make aeroplanes in the next decade able to fly that 20, 21 hours. and will we see that? even over a decade or beyond. i tell you what, ultra—long—range flying now is becoming part of the strategies for our customers here in southeast asia, in latin america, in the middle east and i think it will continue to be a really important part of the strategy. so, hey, iwasjust on an aeroplane a couple of weeks ago for 17 hours and i would rather fly that 17 hours and not make that stop and shorten my trip time
so i can be my hotel bed a little earlier. talking about those ultra—long—range flights, what are they going to do for the cities that rely on a hub system? abu dhabi, dubai, qatar, singapore. it's going to kill them off, isn't it? well, frankly, you know, point to point, more destinations has been a trend in the market for a number of years. look at the 877, in the last six years, it opened up 180 new markets. so that's really where the growth is, it is not about big cubs growing, it is about more frequently to more places around the world, more convenience for passengers. that was aaron chatting to the vice president of boeing there. asian stocks tracking rises in us — us economic data strong — overshadowing trade concerns. and let's look at the markets. according to the lse some kind of technical glitch meant that the opening of trade, the auction, has
meant that couldn't take place and london has actually opened for business yet. —— has not actually opened. and paul blake has the details about what's ahead on wall street today. well, so far at least, wall street has brushed off the threat of a global trade war. the stock market keeps rising despite new tariffs and new problems with trade talks but this determined optimism will get tested again on thursday when donald trump meets with japanese premier shinzo abe. japan, like most long—standing us allies, has found itself at the sharp end of mr trump's trade rhetoric. meanwhile, two more of those allies, canadian prime ministerjustin trudeau and french president emmanuel macron, will be holding a press conference in ottawa, where trade is almost certain to come up. all of this takes place ahead of the weekend's g7 summit which will see leaders meeting in canada, a meeting where america's isolation in the realm of global trade will get again be on display. that is paul, part of our team in
new york. joining us is sonja laud, head of equity at fidelity international. nice to see you, sonja. the ftse not open, as you can see by me. these things happen, technical glitches? absolutely. for the time being i wouldn't read too much into it. obviously the timing is very vague... 40 minutes into the trading day is quite a long time. yes, but i guess as long as... a lot of money could be made in that time. yes, but we do not have more information. let's talk about markets, because the rally is obviously continuing today, isn't it? indeed, but i would say we have debated more in perspective with what has happened since the beginning of the year. we know lots of headlines, politics, fundamentals, a lot going on for investors the digests, a lot of up and down. and the global index so far has managed to get up by 1.5%,
so it feels a lot more has happened and is actually reflected in what markets have been delivering. and also probably reflected in people's portfolios, so watching the day today you would think, oh, i'm really quits in today, but it is not a lot. yes, that is why we say it is important to understand what is going on. it won in fundamentals, the economic growth profile, is it decelerating? weaker data in the uk, europe, other parts of the world. where is this going to stop? is it a normalisation or is there something more sinister happening? kind of the final innings of the global growth cycle, then lots of politics happening on top of this which obviously creates lots of volatility. what is going on with the ecb? talk of winding down, but you look at what is happening in italy, while that's the with that... i think it is very important you mention this because it is another component driving targets, global
central bank. you thought about the dollar, which is obviously intrinsically linked to what is happening with the fed and the global central bank liquidity. the ecb has been the most supportive until this year and their testing for the first time whether they can reduce the monthly purchasing volumes. obviously now with the political situation in italy coming back into force, it is a very interesting dilemma. obviously the ecb is supposed to be independent of this and focusing on the fundamentals rather than politics, but i think the market will how disciplined they are going to be. well, he might have his views on what is going on in italy, jaipur. you are with business live on bbc news. —— mario draghi in
italy might have some views on what is going on there. still to come... programmed for change! we'll hear about one entrepreneur's efforts to get more females into coding. let's get more on the news that house of fraser is set to close 31 stores which could affect some 6,000 jobs here in the uk. joining us now is our business correspondent theo leggett. what's the goal, why are retailers in such trouble? yes, 59 stores across the uk, and two of these are not included, one in ireland, for example. there are 16 of these category one stores which will be kept under the current terms, rents will not be true that they will be as normal. of the category two stores, there will be reduced rent, 75% of current levels, and they will continue trading as well, that is one of those stores. the remaining 31, including the flagship store on london's oxford
street just down the flagship store on london's oxford streetjust down the road, they will have read reduced to 30% of current levels for seven months and after that they will close, so that will more than half their size, pictured for company —— they will have their rent reduced to 30%. the retail environment is changing. house of fraser has been very clear about that, and have set out a recovery plan based on that assumption. more people are buying things at home to internet sites like amazon, and that means if you have large stores on rents negotiated years ago when the high street was very different it is ha rd to high street was very different it is hard to afford them. what they want to do is pay back, concentrate on the stores that are profitable and get rid of the ones that are not become much more of an upmarket niche retailer than it is now. ok, theo leggett, thanks very much indeed with the house of fraser story and there is plenty more on that on our website including on our business live web page, reconfigured what stores are closing and what the proposed plan is. as we say, just a
proposal at this point. also the ongoing story about carillion, the collapse of the company that has led to manyjob losses. this is a quote from bedfordshire county council, the former leader of the council, who says the collapse of carillion met raises so many questions about the capacity and competence of government as a client when it comes to outsourcing. the collapse will cost uk taxpayers an estimated £148 million, according to the national audit office, so that again is making bad headlines. you're watching business live. let's take a look at how markets are faring in europe. we have had a statement from the london stock exchange in the last minute or so london stock exchange in the last minute orso and london stock exchange in the last minute or so and they say as we have been telling you, the stock exchange has not opened for business this morning, it was due to open at 8am but it is saying that you do a technical issue, the opening auction
was delayed but trading is scheduled to begin at 9am. as you can see, the london market still showing the figure at which it closed yesterday. in about 13 minutes, trading will begin in london. let your watches, for those who need to know. and now let's get the inside track on how to equip girls with leadership skills and the confidence to pursue careers in tech. renee la londe is one of silicon valley's most passionate campaigners for women to be better represented within the tech sector and, in particular, within leadership positions. she is the founder of glam, girls leadership academy, which introduces young women to the world of tech through education, inspiration, and mentorship. she also believes that women in senior positions should do far more to help other females on the way up. alice baxter caught up with her and asked if the lack of diversity within the technology industry was still a problem. i think it's really important that more women start
companies so that we can lead the way on the culture and actually start to think of companies in a way where we are actually making them more human. one of the things that really changed my life is my mum really scraped together, like, pennies together to get me into computer camp when i was 13. it really changed my life because coding became something that wasn't a mystery or something that was not hard for me and i could really then go into tech. my firstjob out of university was with apple. one of the givebacks that we do as a part of our social responsibility as a corporation is we have this girls leadership academy meet up that we do for girls aged 8—12 and it is free. we really try to get those girls that socioeconomically could not afford free computer camp and we teach them not only about coding but we teach them about what is a business plan? how do i pitch a business plan? and then we do a shark tank
at the end so they use their voices. that is one of the reasons why i think a lot of people i think a lot of women don't stay in tech because culturally, they don't feel like they get their voice out there. talking about the girls leadership academy you set up, glam for short, great name, obviously that is focused primarily on younger girls coming out of school but is it ever too late for a woman or a man on how to code? no, it's not, it's not too late. it is like learning a language. it is really not something to shy away from. in this new digital economy that we are in, women make up 50% of that fabric and if we don't get involved and start learning how to be a part of the vision and setting that leadership tone in this new world, we are going to... our voices are going to get lost. another key idea that you have been keen to push over the years is that of mentoring. you wrote a memo to your company only earlier
this year, #mentorher. why do you think it is such an important idea, women mentoring other women? in these big corporate environments, where 75% are men, it is a little bit daunting for women. i think it's really important that women encourage each other, support each other, have each other‘s back, help each other get over any obstacles that come their way, and so there's a lot of great men that mentor women as well but it's also really important for women to make that part of their fabric. you know, in our company, we are 54% women. we really didn't have a programme around, "we have to go and get 54% women," wejust hired the best and brightest but it comes from the top. that's why i feel like more women starting businesses are also going to change the fabric and the landscape. i'm sure it comes as no great surprise to you that there's been lots of studies drawing a correlation between diversity within a company and its success. yes, so the dti did a study in 2014 that said companies that have more women in leadership
are better financially. they are better off financially so they are in the top 50% versus the top bottom. there's real data that supports women in tech really make a difference and that diversity makes a difference. legendary "gentleman's club" owner peter stringfellow has died at the age of 77 from cancer. after starting out as music venues in the 1960s, by the ‘80s he became synonymous with topless bars and after—hours entertainment. we spoke with him back in 2016. here he is telling us how his clubs made such an impact on britain's nightclub scene. when i first started in 1962, as i told you, it was all strictly come dancing stuff. i was kind of like the rebel of sheffield. it was unbelievable and for those few years, i was bringing people in from america.
jimi hendrix for £50. rod stewart when he was the second singer with the hoochie coochie men. on and on it went, all brand—new stuff and you were just breaking it, you didn't know where you were going. it's like that today, we don't know where we're going, so what? there's always going to be people who want to be together and see each other. peter stringfellow, there, who has died at the age of 77. a self—made businessman, i was presenting with ben on that day and it was a fascinating story. sonja laud from fidelity international is joining us again to discuss. he is one of those classic rags to riches kind of stories, born in sheffield, in the north of england, his father was a minor, left school at the age of 15 with no qualifications and died a multimillionaire. absolutely, quite a fascinating story and what i find interesting as well is that obviously commies mostly known for the topless bars but if you look at
his cv, there's been a lot more that he achieved through his career. he was quite an interesting character and looking back at his career, he was the first person to sign the beatles when they were at the beginning of their career which is what made him his money to begin with. absolutely, and probably laid the foundations him to continue his business empire. quite interesting because as you know and as we are very aware of on this programme, we don't have enough time with our guests which is frustrating and one of the things i wanted to ask him was how much is industry has changed, you know, gentlemen's clu bs, changed, you know, gentlemen's clubs, especially in this era with #metoo and time's up, one of the stories yesterday was about miss america dropping the swimsuit section because it is no longer about physical appearance and things have changed a lot since he started. absolutely and maybe it's a bit too early because his club in covent garden is one of the longest running still, and it will be interesting to see whether there will be any
changes on the back of what has been happening recently and how it is run. interesting views on brexit as well because he was a lifelong tory, but he changed his views after the brexit vote. yes, he was actually quite vocal and said he can't see, that he was very against britain i think ez sleepwalking out of the european union without a trade deal in place. let's talk about emirates, though, coming up with the idea of having an aeroplane without windows and the possibility of a virtual view. your thoughts, would you like that? no, i wouldn't view. your thoughts, would you like that? no, iwouldn't but i'd view. your thoughts, would you like that? no, i wouldn't but i'd fly so much and i don't mind it at all, i like the fact i can look out of the window. do you like window seats? i need to sit in the window. what frustrates me is my children with the shutters. it is just a nightmare. and i want to have easy access to the loo, does that sound really bad ? not access to the loo, does that sound really bad? not at all but i'm
amazed you're saying it on tv. lots of tweets about this, norma says in principle it is a good idea, naomi says if it was as if you were on the bus, it could help scared flyers but you can't beat some views. so many of you have got in touch, harry says, "are you kidding? who wants to look at a virtual view?" it depends what it is, it could be clouds. jim says personally, i'm not massively keen as a regular flyer but on take—off and landing i like to be able to look out for reassurance that all is well. i'm the opposite, i don't want is the outside, just everything getting smaller. i don't want is the outside, just everything getting smallerlj i don't want is the outside, just everything getting smaller. i must admiti everything getting smaller. i must admit i love flying over london, it is spectacular. the london eye and everything. we have ran out of time but thank you forjoining us. have a good day. goodbye. the weather is looking reasonably
dry and settled for most parts of the country but it is somewhat hit and miss with sharp showers around. this was the scene earlier taken by one about whether watchers in carmarthenshire, beautiful blue skies and barely a cloud. spells of sunshine across many parts of the country and also the chance of a shower. some of the showers will be pretty heavy with the odd rumble of thunder particularly across southern england and southern wales. the satellite image shows the cloud that has been drifting across southern parts of britain in the last few hours. more cloud on the east coast of england and eastern scotland at times and also towards western scotla nd times and also towards western scotland and northern ireland, a few shower clouds developing through the day so hit and miss towards the far north—west and the barthau. elsewhere, dry and sunny with temperatures generally around 20—23. a bit cooler around the east coast with the cool air coming in from the north sea and a bit more cloud. loud
becoming more extensive tonight, drifting east to west across many parts of the country, clearer skies towards the west but generally a mild night ahead with temperatures staying in double figures. friday is similarto staying in double figures. friday is similar to what we have got today. fewer showers in the south compared to heavy hit and miss showers we have seen today. still could be one or two tomorrow but lots of dry weather and slightly cloudy conditions although the cloud will break up in the afternoon. temperatures doing reasonably well, 20-23 temperatures doing reasonably well, 20—23 where you see the sunshine and a bit cooler on the east coast. more of the same this weekend, some warm sunshine and the chance of a view sharp showers around. this is saturday, you can see generally dry conditions across many parts of the country once again. western scotland and perhaps the south—west of england will tend to see a few showers gathering, one or two on the heavy side, most of us avoiding showers, 20—23 in the sunshine, a lwa ys showers, 20—23 in the sunshine, always a bit cooler on the east coast. into the second half of the weekend, high pressure to the north,
low pressure to the south bringing heavy showers across parts of france, some showers drifting northwards. on sunday, the chance of some heavy downpours showreel rain and the odd thunderstorm particularly across southern britain. further north, showers fairly isolated. sunny spells, highs of 23 degrees. goodbye. hello, it's thursday, it's 9 o'clock, this is victoria derbyshire — welcome to the programme. theresa may is to meet senior ministers to try to resolve tensions over the government's brexit ‘backstop' plan to avoid a hard irish border. britain's man in charge of brexit — david davis — is understood to be calling for a firm end date to be included in the deal before it's published. the detail of this is being discussed at the moment. it's been through one cabinet committee, it's going to another one, and it would be improper of me to pre—empt the negotiation. we'll bring you the latest. people who need end of life care in the north of england are likely to be offered a place in a hospice or palliative care at home far later than those in the south of the country.