tv Business Briefing BBC News June 27, 2018 5:30am-5:46am BST
this is business briefing. i'm samantha simmonds. the fear factor. uk businesses increasingly demands answers to what the brexit deal will look like. but is the government ready to tell? and move over, pizza and chips. in china, the snack of choice during this year's world cup viewing is anything but foul. and on the markets, asian markets are fluctuating as trade war fears torment investors. but energy firms rally after a surge in oil prices. influential eu states such as germany, france, and spain will block any attempt by the uk to remain within the single market for goods without freedom of movement, the spanish foreign ministerjosep borrell said on tuesday. the comment came as eu leaders are about to hold a summit in brussels starting thursday. and some uk businesses have sounded warnings about the disruption
and damage they say brexit will cause. for business the biggest concerns over the future of trading relationship worth more than $733bn last year are how that will continue without any kind of trade deal or customs union. a key part of that is the irish border over which $3.5 billion of trade is conducted. the uk's northern ireland secretary karen bradley has been in brussels this week trying to make progress on how to avoid a hard border which some worry would undermine the peace process. and without these issues sorted there is no clarity on what or how the uk can negotiate free trade deals of its own. something that's led planemaker airbus and the car industry body, the smmt, to voice their concerns, and the operator of heathrow airport revealing it will shift its international hq from the uk to amsterdam due to brexit. with me is ross denton, trade partner at baker mckenzie.
the morning. let's talk about interventions from businesses. the government says it is not helpful. what impact is it having? it is focusing the mind. something has to be done. investment has to be made but businesses. any clarity that can be given to them is welcome. from the other side of the perspective, they are saying if they do not get clarity and what they want, many are mobile businesses which can move out of the uk. more negotiation is happening today. we do not know what is coming out of the press conference last night with michel barnier. what is the best result? they want nuts and bolts of the negotiations. the money and things
about immigration are important, but the most important thing for them is the most important thing for them is the shape of the future relationship between the uk and the eu 27. i think we can see some certainty we will have a free trade agreement of some type. we need to know the type of customs relationship we will have it in the european union and the uk. inside the uk government, we have this weird dispute going on with the customs partnership and the arrangements. they have been seemingly rejected by the eu. both have problems. it is getting some clarity around what is going to happen on the customs side of things that will be important. if they get it wrong, a lot of costs will be put on the system just to do with getting customs arrangements in place and moving goods that normally pay nothing. we will have many issues around those kinds of things
which businesses want clarity on. we have heard from big business. what is the view from the eu which also need to understand what is happening. a lot of trade goes that way. we had a report on monday where we interviewed 800 european businesses. the view was interesting. less than 50% of businesses felt they had taken some steps to do with record in a negative situation. —— brexit. they also value free trade and a customs union. they seem to think the european union should concede on the trade side to get the deal up and running so the european union businesses can benefit. hopefully we will get clarity incoming hours and days. thank you. trade tensions are also high between india and the us, after india announced a list of tariffs against us goods
in response to trump administration's steel and aluminium duties. officials from the us and india are having talks today, so will the negotiations help? let's go to our asia business hub, where rico hizon is following the story. what are we expecting from today? the hope is that negotiators from both sides will find a middle ground in ongoing trade talks and avoid friction that threatens to disrupt the otherwise warm relationship between donald trump and prime minister narendra modi. but last week, india announced a plan to raise tariffs in retaliation for washington keeping india in the list of countries affected by the steel on and on minium tariffs. —— aluminium. i talked with someone who said this is all the us wants. aluminium. i talked with someone who
said this is all the us wantsm aluminium. i talked with someone who said this is all the us wants. it is unlikely. only four countries are the list. for india to get off of the list. for india to get off of the list, they would have to show commitment for what the us wants them to do. and reduce the trade deficit, $30 billion, unlike china, 275 billion dollars. but any deficit for donald trump is bad. anything they can do to show they will reduce they can do to show they will reduce the trade deficit is enough to perhaps get off the list. and this trade war which is imminent, the mainland is doing its own cutting. beijing reduced imports from south korea, beijing, and india. it will ta ke korea, beijing, and india. it will take place on july korea, beijing, and india. it will take place onjuly one from soy beans to medical supplies. from the looks of things, china wants to be on the good side of asian
neighbours, isolating the us from its regional allies. thank you. now let's brief you some other business stories. the us has told its allies to cut all oil purchases from iran to zero by november, as it prepares to reinstate sanctions against the country. the state department said it does not plan to offer waivers or allow countries to wind down imports from iran. oil prices jumped following the announcement. two us senators have urged president donald trump to reconsider his agreement with zte, saying lifting a ban on china's second—largest telecommunications maker poses "a significant threat" to national security. "zte, though publicly traded, is a state—backed enterprise that is ultimately loyal, not to its shareholders, but to the chinese communist party and chinese government," senator mark warner and marco rubio said in a letter to trump. for fans of football, there's no better time than the world cup. you get together with friends and family and watch top—class matches. in asia, that means sometimes staying up till the early hours of the morning, watching and munching on your favorite snacks.
in china, the hot nibbles this year, are yabo, or what in english we'd call duck necks. stephen mcdonell has more. china like many other countries, is in the grip of football fever. here, that means a festival of sport, ears, and... duck necks. —— beer. all over beijing, just like other chinese cities, these good delivery drivers can be seen in big numbers rushing around the streets. this family has kindly allowed us to
watch the game with them. come and meet them. so, we have got our beverages, we have got out duck necks, and we have got our football! enjoying the world cup action. that's it for business briefing this hour. but before we go, here are the markets. and on the markets... up next — newsbriefing. we'll take you through the stories making headlines in the global media today. the government has scrapped plans
forfive new women's prisons in england and wales. the same number of residential centres will be built instead. they will provide help with getting a job and treating drug addiction in a bid to reduce the number of women being jailed for low—level offences. our home affairs correspondent june kelly reports. prison doesn't work for many women. for years, that has been the message from reformers. the majority of female offenders are assessed as low oi’ female offenders are assessed as low or medium risk and commit nonviolent oi’ or medium risk and commit nonviolent or low—level offences. and many keep being sent back to jail for minor crimes. women make up about 5% of the prison population in england and
wales. nearly 60% have suffered domestic abuse, and many have mental health problems. 70% of those on short sentences will go on to reoffend. now, the ministry of justice says rather than women going to prison, there will be a network of residential centres where they can be given help to turn away from crime. women can get the support that they need to turn their lives around, to stop them reoffending. that helps us bring down crime and it helps make sure that we get people on the right track. there are currently nearly 4000 women in jails across england and wales. campaigners have welcomed these major shift in position from the government. when it comes to dealing with the female prison population. bbc news. more than 30 homes have been evacuated as a huge moorland fire continues to spread in greater manchester. the blaze on saddleworth moor has been declared a major incident and the army is on standby to help out. smoke can be seen for miles around. greater manchester fire and rescue have advised locals to keep their windows shut.
coming up at 6am on breakfast, charlie stayt and louise minchin will have all the day's news, business, and sport. this is the briefing from bbc news. the latest headlines: president trump has hailed the supreme court decision to back one of his key initiatives, a travel ban aimed at five muslim—majority countries. after the attempt on his life, zimbabwe's president has pointed the finger at a faction who backed former first lady, grace mugabe. six european countries have agreed to accept more than 200 migrants stranded for nearly a week on a rescue ship in the mediterranean. but italy's interior minister has accused charity—run rescue ships of operating a "taxi service" for migrants. now it is time to look at the stories that are making the headlines in media across the world. we begin with the guardian,
which carries a warning from uk chancellor philip hammond who has told us president donald trump that triggering a full—blown trade war would spell "disaster" for the us economy. meanwhile, the telegraph looks at warnings from economists that the nine—year bull run in financial markets could be at an end, as higher interest rates, trade war, falling profits, eurozone imbalances, and a potential us recession finally tip markets from boom to bust. the evening standard reports uber has won a legal battle that will allow it to remain in london, reversing a ban on the company last year. the taxi—hailing app secured a new is—month probationary licence to operate in the uk capitol. the ft says bank of america is accelerating its preparations for brexit by relocating more of its senior uk—based executives to paris increasing its investment banking operations in the french capital. and finally, in the mirror, argentina football legend, diego maradona, may have become a little too excited following his country's win against nigeria in the world cup. the former barcelona and national team player had to be treated by paramedics in the stadium after appearing to collapse after his team's 2—1 victory. it
so to those stories. with me is james hughes, who's chief market analyst at axi trader, a brokerage firm. let's have a look now at the story about phillip hammond, who basically says the british chancellor is issuing a warning to trump, he's in america and has gone on tv to say what? well, he has issued a warning. he is obviously not the first foreign minister to issue a warning oi’ foreign minister to issue a warning or the last problem be in this week toissue or the last problem be in this week to issue a warning to president donald trump. the issue of these trade wars is becoming such a massive issue going forward and that is causing all sorts of problems, and issue with these trade wars is at the moment, it tends to net itself off. you have the us imposing