tv BBC Business Live BBC News June 12, 2018 8:30am-9:00am BST
this is business live from bbc news with ben thompson and sally bundock. the summit of the century takes place in singapore. the president of the united states and the north korean leader sign a historic deal, but the world awaits the details of the agreement. live from london, singapore and seoul for this special edition on tuesday, 12 june. seoul for this special edition on tuesday, 12june. a very warm welcome to the programme. we will keep you across what has been quite a day in singapore, events have been unfolding. after a year of exchanging threats, the leaders of the united states and north korea have met for an historic summit in singapore. us president donald trump said a lot of progress was made before signing a document with his north korean counterpart kim jong—un. but we don't yet know what has been agreed in the meeting. we are expecting a press conference
from the president within the next few minutes, we will bring you that live on the bbc. all eyes are on the detail on the global investors of course nervously awaiting details too. the financial markets have been pretty choppy, extremely sensitive for the market in south korea and the nick and in tokyo. mariko oi joins us from singapore. you have spent most of the time outside of the hotel where kim jong—un has been staying, quite a marathon for you, the markets have been choppy, but tell us more about the feeling where you are about how the feeling where you are about how the day has gone so far. well, you mentioned the markets injapan and
many foreign journalists from japan and south korea are here, close neighbours of north korea, and whatever happens at this summit, it will have some kind of an impact on their countries, but as you say, the trading has been rather choppy. we did not see much impact, i think it is fairto did not see much impact, i think it is fair to say investors and traders realise that today was just the beginning of renewed relationships between north korea and the us and probably the rest of the world. but nothing too concrete would come out of it. the two leaders did sign a declaration, i have some points that appear to be declaration, i have some points that appearto be in declaration, i have some points that appear to be in the declaration. they are committed to establishing a new relationship between the two countries and that north korea is committed to denuclearisation which was a part of the statement after the inter—korean summit in late april. in no way, there was not exactly a huge achievement in that
sense, but i think the meeting was seen as, let us meet, introduce each other, see if we can get along. president trump said he was honoured to meet him, that chairman kim is a really good negotiator, someone that he would like to talk more off. he actually even said he would like to invite chairman kim back to the white house. if that happens, that would obviously be very historic. given only a year ago, less than a year ago, actually, the two men were exchanging insults, the fact they we re exchanging insults, the fact they were shaking hands, smiling at each other, something of an achievement. we should not forget about of course the horrible human rights abuse records that north korea is accused of, kim jong—un just over a year and a half ago, accused of killing his own stepbrother and killing his uncle. all of that should not be
forgotten but definitely he has managed to change his image from being a ruthless isolated dictator toa being a ruthless isolated dictator to a statesman and this is probably something chairman kim wanted, to be seen like an equal leader to be us president which would go down quite well with the north korean public. you are right, it is hard to underestimate quite how much of a turnaround this is, the fact they have met and signed this agreement. some see this as a big propaganda win for some see this as a big propaganda winfoer kim some see this as a big propaganda win for mr kim but others say it is a potential path to peace that could change the outlook for the world. yes, it is something that has been dividing opinions, particularly in singapore, the host of the summit. late last night, kimjong—un singapore, the host of the summit. late last night, kim jong—un took a night tour, we saw his entourage leaving them coming backjust before midnight, being shown around some of the tourist spots like marina bay
gardens and singaporean ministers tweeting a selfie would kim jong—un and kimjong—un tweeting a selfie would kim jong—un and kim jong—un being tweeting a selfie would kim jong—un and kimjong—un being greeted with the crowds cheering, even one woman was heard saying, mr kim, i love you. many are very puzzled about that and very critical of that because he should not be treated, they think, as a celebrity, like a vip, that he should be held accountable for what he has done to thousands of north koreans. but in terms of changing the image, i think mr kim has successfully done that and the fact that we saw the picture of north korean flags and american flags together. remember, those two countries are still technically at war, the korean war ended and they agreed to a truce but they never technically ended the war. but did not appear to have happened. but the fa ct not appear to have happened. but the fact the flags were shown together
in itself was something very historic and remarkable. just tell us historic and remarkable. just tell us about the location of where this took place today, sentosa island, luxury resort, golf resort which i know president trump would have appreciated. it provides a lot of privacy, but a lots of comfort. indeed. we understand that centres island and this hotel was chosen for the summit because you can practically block out all of the other people coming into the hotel —— sentosa island. you can block it off quite easily. that is where the historic summit took place. i am outside the hotel where kim jong—un has been staying and he is still inside. we were told he might be leaving soon but he might not leave until much later tonight, i might be sticking around a little longer.
president trump is less than one kilometre away at shangri—la hotel which also has a lot of experiences in accommodating global leaders. all of this is costing quite a lot of money for the singaporean government, they paid kimjong—un money for the singaporean government, they paid kim jong—un to stay at this 5—star hotel, saint regis hotel, rooms here cost thousands of dollars. in total, it cost the singapore government about $15 million. i have to say, in terms of the exposure that singapore got by being in the news headlines for the last three days and all of the pictures shown, the beautiful nightlife and the skyline we have seen, probably worth something of an investment, so the singapore government was very eager to benefit from that as well. of course they would say they have been saying they wa nted would say they have been saying they wanted to play a part in this very historic summit which could hopefully lead to world peace as well. thanks a lot, we appreciate
your time. part of our team in singapore. many of whom you have seen on our singapore. many of whom you have seen on our continuing coverage, doing a sterling job. white outs at the hotel where kim jong—un doing a sterling job. white outs at the hotel where kimjong—un is staying. you can see the picture, the scene where we are expecting president trump to give a press conference within the next coming minutes, he is expected to outline some of the details in the historic agreement. we saw that agreement signed and our or so ago but very few details emerging from what has been agreed between the two leaders. we are expecting president trump to give us a little bit more detail about what was signed. they have made promises, the two leaders, when they talk to the press in the signing ceremony, if you can call it that, kim jong—un said, this will change the world, that was his analysis of what they have agreed on today. president trump said, they
got on surprisingly well. more than anyone could have predicted. so a very interesting turn of events, given what we have been discussing in the last five minutes or so. let us talk now about what it could mean for both sides because who stands to gain? a lot of implications for world peace, but as far as business is concerned, china is north korea's main trading partner, accounting for over 80% of both imports and exports. but trade dropped as much as 35% in 2017 as stricter sanctions came into force. miha hribernik is head of asia at global risk consultancy verisk maplecroft and he explained the huge obstacles facing the north korean economy. north korea is one of those still very rare, one of the last remaining frontier markets, where literally everything from basic infrastructure
to every imaginable industry and service sector has to be built from scratch or rebuilt, so the investment opportunities in north korea at least on paper are tremendous. you just mentioned some of the commodities and raw material reserves they have. so the potential is there. but at the same time, regardless of what happens after the summit today, the barriers to investment in north korea, even if they begin a process of gradual opening up which is still... there isa opening up which is still... there is a big question mark hanging above that. the obstacles to investments are tremendous. ranging from corruption to just the lack of any kind of basic respect for property rights. efficient legislation. there is enormous number of barriers still
in place —— devolution legislation. what we are hearing from some observers as kim jong—un's desire is to see change in the north korean economy and that is what he has got to ta ke economy and that is what he has got to take home with him in terms of what he has said to have achieved in talks with the us president. we saw him out on the town in singapore. you could not have two countries further apart in terms of development. what does he want, do you think? what will he be asking from the us president in terms of the economy? well, certainly, kim seems like a very intelligent leader who knows exactly what he wants. we are certain he is aware that economic development is a key to ensuring his own regime's survival. that is non—negotiable. ensuring his own regime's survival. that is non-negotiable. that was really interesting, what he had to
say about north korea. we will be straight to singapore live immediately, as soon as we get news of the press conference. in the meantime, some of the noise —— some stories. president trump's economic advisor larry kudlow has suffered a heart attack. he was at the weekend's acrimonious g7 summit and later appeared on american television criticising the canadian prime ministerjustin trudeau. his doctors expect him to make a full recovery. british prime minister theresa may faces a vital 48 hours in the house of commons as mps begin voting in the final stage of the eu withdrawal bill. lawmakers want more power to challenge any brexit deal, testing both her authority and her plans for leaving the european union next march. leading us bank citi has issued a stark warning about the automation of human jobs. citi's president jamie foraise suggested that it will cut up to half of its 20,000 staff in technology and operations over the next five years, as machines replace humans at a faster pace. the us senate will vote as soon as this week on legislation to block
a trump administration deal that allows chinese telecoms kit maker zte to resume business with american suppliers. zte agreed to pay a $1 billion fine, overhaul its leadership and meet other conditions. this is what is happening on the markets. investors trying to digest what happens in singapore and you can see so what happens in singapore and you can see so far optimism, closing figures from the us last night, by a third of 1%. in europe, the second page, that is what europe is doing, really waiting for some detail to come out. just to say, in paris, one of the big winners is casino, a big retailer, supermarket chain, plans ofa retailer, supermarket chain, plans of a massive asset sale that it will deliver by early next year to reduce a huge debt burden, casino shares in
paris up 8% today. wall street, the big story in singapore, but the details about the day ahead for us coming up. wall street's attention will turn from singapore to washington on tuesday as the us labor department releases the consumer price index for the month of may. the figure is the key and patrick ritchie indicator of inflation —— key indicator of inflation. federal reserve, tuesday is day one of the two day meeting work will likely see interest rates rise later in the week. wall street will be watching the quartz with an expectation that we will see a ruling in the government's anti—trust lawsuit. —— the courts. for its part, at&t says it needs to make the deal to compete with the likes of netflix, amazon and other streaming technology companies in the 21st—century. streaming technology companies in the 21st-century. paul cabinet blake in new york. —— paul blake in new
york. joining us is sue noffke, uk equities fund manager at schroders. paul is saying that when wall street gets going traders will be digestive what is going on in asia, but they have got the fed, there are some worries? yes, but that has not u nsettled worries? yes, but that has not unsettled markets particularly from the g7 and the threat or spectre of trade wars, we have by friday to work out which exports to china... imports from china will have this 2596 imports from china will have this 25% trade tariffs. we have the fed starting today with an interest rate decision by tomorrow. people will be looking at the communication. we are pretty much certain we will get an interest rate rise on wednesday, but how many more will we get this year and what does it mean for next? and a really important 2a hours for
theresa may as far as brexit talks are concerned. what should we be watching? i think the exchange rate always seems to take the political temperature. that is a good thing to watch within financial markets. we have seen a bit more weakness in sterling recently, that has been caught between the strength of the dollar, but anything that undermines her political authority to get brexit done really undermines confidence in the uk. so we would see weakness of sterling. some of the latest uk economic news is just showing the economyjust limping along. teeny, tiny bits of growth. people put that down to the weather but the data yesterday was quite weak, so we expect a bit more positivity for this week. for now, sue, nice to see you. we will keep a close eye on that. really busy at the moment, lots to get through. still to come... when hunger strikes and the wallet is thin... we'll meet the man who talked
restaurants into offering weekday discounts in return for more footfall. but is it really the win—win it sounds like? you're with business live from bbc news. i sat down with him and asked him exactly that question. a big story in the uk. jaguar land rover has said it will move production of its land rover discovery suv from the west midlands to slovakia from next year. the solihull factory, where the discovery is currently manufactured, will be used to build a new generation of range rover models, the firm said — but it warned there may be ukjob losses. earlier we spoke tojim holder, editorial director at haymarket automotive, which makes magazines including what car and autocar. he told is what is at stake. what we're seeing really is jaguar land rover trying to sort of diversifying the options it has for where it produces cars.
it's moving what is actually one of the smallest selling land rover models, the discovery, to its slovakian plant. now, obviously, that is potentially bad news for a lot of its workers, but what it is pledging to do is to reinvest in the plant in the uk and to tool it up for the future, as you say, for electric models and models but should provide a brighter future for the company. and it is also pledging that its other uk plant will get similar levels of investment in the very short—term, and jobs will be protected there as a result that, of course. it is, on one side, good news, as you say. and on one side, particularly for the workers affected, very troubling. i think what we have to look at is the longer term effect of this, whether this is the start of a trend. the slovakian plant is known to be cheaper in terms of the labour costs and producing vehicles and, of course, brexit presents a huge threat to uk manufacturing, car manufacturing. it adds massive complexity at a time when it's under pressure, and that could become long—term trend. and that's what we have to keep an eye out for. what we've seen was the uk car
industry booming a few years ago, it was on track to reach record levels of all—time production. but that has come to a bit of a shuddering halt. i think the diesel crisis has affected it and the threat of brexit and the implications of that really are concerning the industry. i think people from the industry, whichever side of the brexit divide they sit on, they have yet to see an upside to the manufacturing that they do in the uk. it really is troubling times for them. but, of course, they work ten years ahead. these are massive, massive plants that require massive amounts of investment. they are looking to the long—term, and that's why they are looking to sort of diversify their manufacturing base. details of all the other uk stories on our website. you're watching business live.
we are keeping you across the historic summit, described as the summit of the century, between the leaders of the united states and north korea. this is the scene live in singapore, we expect president trump to give more details about what was signed at that historic agreement. already within the last hour or so we saw those pictures of the signing, but there is very little detail about what has been agreed. we expect them president trump takes to the podium we will get a few more details and we will get a few more details and we will get a few more details and we will keep you right across it here on the bbc. it's a tough time to run a restaurant. rising prices, expensive rents and a shortage of staff have seen some of the biggest chains in the uk shut outlets and lay off staff. so how do you encourage millions of people to eat out more and fill empty tables, especially at the start of the week when restaurants are traditionally much quieter? well, one man came up with the idea of tastecard, it's a discount scheme that gives
customers 50% off or two for one meals during the week. it costs around $100 a year. it sounds like a simple idea, but as i found out when i met its founder, matt turner, it's anything but. tasteca rd tastecard is the uk plasma largest diners‘ club. i founded tastecard is the uk plasma largest diners‘ club. ifounded the business because i saw a gap in the market, people wanting to eat out more often but not finding it particularly affordable. i owned a restaurant/ bar back in 2005 and found we were doing 90% of our revenue on a friday and saturday night, during the week we would take what we could get. i spoke to smother restaurants in the area, decided to do a small scheme whereby we offered an incentive to and dine during the week. tastecard was born. what we like to think is we are a win—win for both customers and restaurants, we fill empty seats in restaurants, most restaurants are not at full capacity any day of the
week, particularly during the week, and we allow people to eat out for a deep discount, otherwise they'd pay full price or get a small discount in other schemes and other websites. what is your day to tell you about how much people spend? i imagine when you are negotiating with restau ra nts when you are negotiating with restaurants you when you are negotiating with restau ra nts you ca n when you are negotiating with restaurants you can tell when people might spend more even though they are offered money. the restaurants decided they would look at spending data of customers before and after joining tastecard, the largest chains bound visitors were spending the same amount post—discount but coming twice as often. so because they were getting such a good saving they were getting such a good saving they might upgrade and buy a bottle of wine or desert, have a coffee after the meal, so the 12 time was a bit longer and also the returning. after the meal, so the 12 time was a bit longer and also the returninglj imagine some tough negotiations with big retailers to try to sign them 7 big retailers to try to sign them t big retailers to try to sign them up? it is big retailers to try to sign them ' ery big retailers to try to sign them up? it is very chicken and egg, nobody will buy membership of you for £40 if you have no restaurants, no restaurants for £40 if you have no restaurants, no restau ra nts wa nt for £40 if you have no restaurants, no restaurants want to join you if you have no members. we found
ourselves in london even though we we re ourselves in london even though we were based up north, recruited around 300 restaurants in central london on the premise it was free for restaurants to work with us and there were no negative connotations, if we did not deliver there was no cost to them. what else cannot data be used for? i imagine it is valuable information about customers going out to eat? we will be able to see where people are welcoming and going, where they are using their ca rd going, where they are using their card and where they want to use their card. if we spoke to pizza express their card. if we spoke to pizza ex press we their card. if we spoke to pizza express we might be able to say we have a cohort of this amount of members ina in a town where you do not have a restau ra nt, in a town where you do not have a restaurant, that number is growing, they like to go to mid—market, casual dining italian restaurants, you should open a restaurant on the street. that data is crucial. lots of people will have heard of the slowdown in the so—called casual dining sector, the middle market squeezed by all sorts of things. how difficult is it for restaurants?
they are finding it difficult at the moment, absolutely right. national living wage, brexit, the costa restau ra nts living wage, brexit, the costa restaurants going up, the pound has weakened. getting food into the country is more expensive for restau ra nts a nd country is more expensive for restaurants and people are looking for better value because they are feeling the squeeze. those things combined up squeezing the casual dining sector. 0ur perspective we are helping, one chain we are sending 50,000 covers a week to and represent somewhere between five and 10% of incremental value to them. we are helping them but i think it is important that the casual dining market reinvents itself a little. we have seen the likes of zizzi doing well because they launched a vegan menu very early, others have followed suit. now there are things like pop—ups, people being more adventurous, the casual dining sector has had to raise its game. it is good for them and good for the
consumer. that was matt turner, the founder of best, speaking to me about filling restau ra nts best, speaking to me about filling restaurants during the week, especially given all the pressures on the sector. thank you for your company. let's show you the room with the world's attention right now as we wait for the appearance of the us president, donald trump, who has had on historic meeting with the leader of north korea, kim jong—un. this is singapore's sentosa island, they signed what they described as a comprehensive document but no details on what they had agreed. they were talking about diffusing tensions and nuclear disarmament. mr kim has set the world will see major change as we have decided to leave the past behind, many seeing it as a propaganda win for mr kim. stay with us on propaganda win for mr kim. stay with us on bbc news as we continue special coverage of the north korea/ us summit.
some small changes in the forecast today compared to yesterday, something a bit cooler for many. a more cloudy start to the day compared to yesterday. gradually that cloud will break up and there will be sunny spells developing into this afternoon. a dry start to the day for most of us, we could see showers cropping up across central and southern scotland, and later on we could just about make out those showers in south wales and south—west england. if you have cloud this morning it will break up to get brighter weather this afternoon. temperatures down by a few degrees, 27 yesterday, at best around 21 today across the south. this evening and overnight, quite quiet, some cloud floating around, plenty of dry weather. temperatures getting down to about seven to 10 celsius in eastern areas, 11 or 12 in the west. going through wednesday, high
pressure dominating for england and wales, notice the cloudy skies, the rain and these areas of low pressure which will slowly move into northern and western parts, bringing our rail into northern ireland, the north and west of scotland gradually through the day on wednesday. for eastern scotland, england and wales, a dry day on wednesday with sunny spells. temperatures a little bit higher, about 21, 20 two celsius. 15 to 19 degrees in scotland and northern ireland. into thursday it will turn more u nsettled, into thursday it will turn more unsettled, this area of low pressure will move in. the isobars are quite close together, quite unusual to see a deep area of low pressure like this for mid—june. it will bring some quite disruptive weather on thursday morning. particularly in central scotland, gusts of wind of 60 or 70 central scotland, gusts of wind of 60 or70 mph central scotland, gusts of wind of 60 or 70 mph from the morning rush—hour in the central areas. with the trees in full leaf, that makes it more prone to the swaying around and coming down. there could be some
disruption likely on the travel on thursday morning. stay tuned to the forecast. through thursday, rain spreads south and east, rain eventually clears away from scotland, quite a breezy day for us all during thursday the gradually those winds eased during the afternoon. some sunshine into thursday afternoon, not a bad end to the day with the sunshine, temperatures getting into the 20s. it is thursday morning we need to be prepared this potential disruption. —— prepared for some potential disruption. hello, it's tuesday, it's 9am, i'm chloe tilley, welcome to the programme. donald trump and kim jong—un have made history. they've signed a document committing themselves to a complete denuclearisation of the korean peninsula. but how substantial is it? and we are very proud of what took place today, i think our whole relationship with north korea and the korean peninsula is going to be
a very much different situation than it has in the past. in the next few minutes, president trump will hold of press conference. we'll run it in full and have expert reaction throughout the programme. also, it's a crucial couple of days for theresa may. over the next 48 hours, mps will vote on what sort of brexit the country will get. the prime minister herself has met conservative mps and warned them