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tv   BBC Business Live  BBC News  July 18, 2018 8:30am-9:01am BST

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this is business live from bbc news with maryam moshiri and sally bundock. d—day for google in europe. the us tech giant could be in for a record fine over allegations that its android operating system gives it an unfair commercial advantage. live from london, that's our top story on wednesday 18th july. the eu says google is using its dominant position to keep people in the googleverse — while the tech giant maintains alternatives are just a click away. also in the programme... theresa may will face another day of grilling over brexit as deep divisions continue in the party over the future trade relationship. and the markets are open and it's
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looking like a good start to the day for european stocks. now, we all carry this around with us all day, every day — but do we take good enough care of it? i'm talking about skin. as the skincare market continues to grow, we'll be talking about how natural ingredients are helping one british company expand. are you convinced? as a study of broadband connectivity in the uk is revealed — we want to know, how well does your internet work where you live? are there areas where you still can't get connected 7 just use the hashtag bbcbizlive. hello and welcome to business live. tech giant google could be handed down a record fine later today by the european union s watchdog. the eu has spent three years investigating whether the company has gained an unfair commercial advantage. and here s why.
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google provides the operating system for all android phones free of charge 7 with the condition that google chrome and its search engine are included as the default options. there are over 2 billion people using it every month. that's more than double the number of iphone users. and all of those people will be downloading other apps and can be targeted for advertising 7 which is a crucial revenue stream for google. the eu says this keeps users within the google universe to the detriment of other providers 7 while google maintains that alternatives are just a away. last year, google paid a then record fine of $2.7bn because the eu commission found that it unfairly promoted its own online shopping tools and sites. our technology correspondent rory cellan—jones is with me now... what is the european commission's
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point7 what is the european commission's point? this is all about the control that google exercises over this android operating system and the european commission's view of how far it has gone from the original content. google originally touted android as completely open source, do what you want with it, it's free, we don't care. over the years, it has got more and more tied down. they want to impose limits, partly to make it safer and more usable, they say. but there are things like making a manufacturer having to use google search on the phone and you have to take a bunch of other google apps too. they also incentivise manufacturers to promote google search above other search engines by giving them money, giving them a cut of the profit. the central allegation is that it is incredibly dominant. android on phones around
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the world, and it is abusing that dominance for its own good. and how does google defend itself? google say that this works, frankly. you have two operating systems, apple's iphone, very powerful, very locked down and very controlled, and you have got android, which is less locked down, but they want it to be secure and they want it to be a friendly environment, and they say it works for customers. they are getting a huge range of phones, a big range of apps, a great range of services and a good price. that is their argument. the eu competition commission could dish out a hefty fine, but it may ask google to change its ways as well. in what way might google be forced changes business model? they might stop it from doing the things we have heard about, bundling all these apps together and paying people incentives to use them. that would bea incentives to use them. that would be a threat because google is not in it for love, it is in it for money. it makes a huge amount of money out
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of this business model at present. anything which attacks that business model could affect its bottom line. so there are some tough negotiations ahead. maryam was talking about a fine dished out last year. this one could potentially be over $11 billion. it is 10% of global turnover7 billion. it is 10% of global turnover? last year's fine was about google shopping, which too many is an obscure business. android is not obscure, it is a huge business. google has moved its advertising business from the desktop to the mobile with huge success, it's hugely lucrative. so if there is a fine, we are expecting it to be a big one. you are updating us, i assume7 big one. you are updating us, i assume? i will be on the button, ready to rush into your studio. that could be an announcement we get in a few hours' time. we will update you. let's take a look at some of the other stories
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making the news... astrazeneca will increase its stockpile of drugs by about 20% in preparation for a no—deal brexit. the european regulator has told firms to be ready for a possible hard brexit in april 2019. astrazeneca says it has already spent more than $50 million preparing for a no—deal brexit. video streaming services like netflix and amazon prime now have more subscribers than traditional pay tv services here in the uk. the country's media regulator — ofcom — says tv services will need to adapt to compete, saying it would be great to see a british netflix. technology entrepreneur elon musk has apologised for calling british cave diver vernon unsworth a "pedo" on twitter, before deleting the posts. mr unsworth was involved in the operation in thailand to rescue 12 boys and their football coach. mr musk had offered to assist the mission and said he was building a mini—submarine, but mr unsworth said it wouldn't have worked, prompting musk‘s outburst. trade negotiators from the 11—member tra ns—pacific partnership are meeting injapan today
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to discuss whether to accept new members into the free trade bloc. it comes just a day after possibly the biggest trade deal ever was signed byjapan and the eu. with us now is katie silver in singapore. theink the ink has barely dried on the japan— eu trade deal and japan today is on the march, still7 japan— eu trade deal and japan today is on the march, still? they are. they are very forthright when it comes to pursuing free trade. they are meeting west of tokyo in a beautiful national park area and they are trying to work out a way to get over the line when it comes to this tpp11. this was the new deal that came about as a result of the original trans—pacific partnership which was canned after president trump took office last january. it was signed in march, but so far only mexico has ratified it, back in april, and japan has completed the
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procedure so that they can ratify it in ten days' time. they need four more to get over the line, which japan hopes can happen by the end of this year. they need other signatories like australia or new zealand and singapore to sign on. while the prospective new members that they are interested in? colombia has requested tojoin it. the tpp 11 have said that korea is ready but have not applied. and when it comes to countries like thailand and indonesia, they have also expressed an interest but so far, they say they are not ready to join. japan's nikkei moved to a more than one—month high. exporting stocks such as automakers and technology firms got a boost after the dollar hit a six—month high against the yen. in terms of european stocks, it's been a good start to the day. companies like ericsson have come out with their figures. and paul blake has the details of what's ahead
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on wall street today. kicking us off before the bell is morgan stanley. wall street is expecting the major investment bank to announce a rise in profits on the back of strong trading and disciplined expenses. over their morning coffees, traders will also have an eye towards data on housing and building, and during the day the street will have one eye on washington, where federal reserve chairman jeremy powell continues his capitol hill blitz, giving testimony before a house financial services panel. meanwhile, america's central bank will release its beige book during the trading day. the binder of economic stories from around the country always comes out around two weeks before the fed meets to decide interest rates, and helps inform the opinion of fed governors. after the bell, look for earnings from ibm, american express, ebay and a host of others. mike amey is managing director and portfolio manager at pimco. it's a really busy time. there is a
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lot coming from the us federal reserve, which is interesting. can i get your thoughts on brexit to start with, if you don't mind? theresa may got a vote through by the skin of her teeth late last night. it was on trade this time. it's been quite a week. it's been quite a couple of weeks, to be fair. there has been a lot of turnover in the cabinet. from a market perspective, the markets look for separation between westminster politics and a fundamental shift with where the uk will end up in its relationship with the european union. so the market volatility over the last week has actually been quite low. it is low on this story, but partly because we are all getting really desensitised, 01’ are all getting really desensitised, or at least the markets are? the
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markets are a bit desensitised to the daily politics. that doesn't change the fact that if we went with wto rules or anything like that, it would change. but at the moment, the markets are keeping an eye on it, but not changing their fundamental view. there is an expectation that some kind of deal will be struck. we have inflation figures out in the uk later. what are you expecting7 inflation has come down in the last few months, which is good news for us few months, which is good news for us all. we may see a tick up this month. inflation is currently 2.4%. and petrol prices have been going up, so that will sadly be reflected in this month's data. but the broader picture is that inflation is still seems to be on a downward trajectory, notwithstanding this month. thank you for now. mike will be back, plenty of other stories for him to chew over with us. still to come love the skin you're in — one skincare company says it's all about natural ingredients,
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and getting enough sleep. we'll find out more about that elusive recipe. you're with business live from bbc news. easyjet is off to a flying start this morning. the airline said revenue in its latest quarter jumped 14% to £1.6 billion as passenger numbers increased. it's also raised its full—year profit guidance, with bright expectations for trading over the summer. john strickland is an aviation specialist atjls consulting. give us your take on these figures. clearly, shareholders were quite happy this morning. it is a strong set of results from easyjet. they have raised their profit guidance for the year ahead considerably. the main benefit they have had in recent
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months was the failure of monarch airlines, which went bankrupt last year and took a lot of capacity out of the market which has not been replaced. that allowed easyjet to have a better pricing environment. they are not chasing passenger demand with too much capacity. we have also seen airlines last year moved capacity out of the eastern mediterranean for markets like turkey into spain, which were then working at overcapacity and moving it back again. that is rejected in the figures we have seen today. easyj et has the figures we have seen today. easyjet has said some interesting things about the warmer weather we have had in europe and what impact that could have on business. they made a throwaway comment on that this morning, echoing what norwegian airlines said last week with their quarterly figures. because of the unusually warm northern european weather this year, many customer airlines like easyjet and norwegian which fly from the north to south to get some sun come up which fly from the north to south to get some sun come up to that the world cup and some of the airlines
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are saying they may get a bit of a hit with their later and normally higherfare paying hit with their later and normally higher fare paying bookings. hit with their later and normally higherfare paying bookings. that is one to watch. thank you. another story on the business live website, the pound is under pressure today. we were talking about brexit. the prime minister has a parliamentary question time in westminster today. she will also be grilled by the 1922 committee which is the conservative backbenchers who will have a lot to say to her. that is one reason why we have seen the markets in london on the right, because the pound has been under pressure. that is one to watch through the day is all the politics come out of westminster. so the pound is down versus the dollar and the euro. you're watching business live. our top story — google could face
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a record fine in europe over its android operating system, which the eu says gives the tech giant an unfair advantage. can sleep be an important part of your beauty regime7 well, our next guest certainly thinks so. she's the boss of a leading skincare company — and thinks a good night's sleep can help you look good. her company is called this works — and is part of a growing industry. the global skincare sector is estimated to be worth around $13a.5 billion dollars this year and is expected to grow to more than $141 billion next year. the company began life as aromatherapy specialists in 2003 — but got into skincare in a big way in 2011. it was bought by us private equity firm tengram capital partners in 2015 and now supplies countries around the world. dr anna persaud is the boss of this works — and joins us now.. you can imagine that we were both
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intrigued and fascinated by your business and what you do, especially this area of sleep. that is something you are moving into in a major way because you feel sleep is key to how you look? absolutely right. there is this old adage that beauty sleep is the secret that we all need and actually, that is very much the case. it is at night when you are asleep that your skin repairs and detoxifies and your new skin cells are generated. if you don't sleep well, over time, your skin will look less healthy and you will age more quickly. our assumption is that if you sleep well, you will look and feel better, and that is the first step in every skincare routine. what does that mean for people like us? we do shift
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work and we have kids. what does it mean for us? it means you have to find the best times in the data sleep. not everybody needs to sleep eight hours at night. you can take small sleeps during the day to boost your total amount of sleep that you get over a 2k hour period. getting to sleep is important. we use lavender and chamomile essential oils at therapeutic levels to help put you into sleep more quickly. mack you are a scientist? you have a degree in biochemistry7 mack you are a scientist? you have a degree in biochemistry?” mack you are a scientist? you have a degree in biochemistry? i have a ph.d. . sorry, a ph.d., dr anna! it is about getting the evidence... this is asleep pillow spray, so you spray that on your pillow to help you get to sleep. what sort of research did you do to check if this does thejob? research did you do to check if this does the job? our process involves a
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panel of consumers across the uk we asked to evaluate the product during the development process, and ask them if they slept more quickly, if they got more sleep, and that is the first part of the process. did you choose people who have struggled to sleep? exactly, people suffering from temporary sleep issues. we then went into independent trials with over 900 people, five independent trials, to assess whether people can actually benefit from using our product and the answer was yes. you have one for babies as well. is that this one? iphone that fascinating because it is what every parent is desperate for, their child to sleep. what is your product do when it comes to a baby that obviously wakes up comes to a baby that obviously wakes up when he was she wants milk, needs a nappy change, whatever? you can't change that —— i found that fascinating. babies wake up, but what's the sleep fragrance does is
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help establish patterns of behaviour. it actually triggers alias of the brain associated with memory, so can alias of the brain associated with memory, so can help to build a sleep routines of children understand when they smell the fragrance it is time to sleep —— triggers areas of the brain. from a business perspective, how grow the business in the sector? the wellness sector, which you fall into, i suppose, the wellness sector, which you fall into, isuppose, cosmetic the wellness sector, which you fall into, i suppose, cosmetic wellness, it is quite a saturated market. how do you single yourself out in that market? to grow the business in the sector? the wellness sector, which you fall into, i suppose, cosmetic wellness, it is quite a saturated market. how do you single yourself out in that market? how do you grow your business? in many ways but you are right it is a competitive market. we are making these claims with robust science behind them, and thatis with robust science behind them, and that is what consumers want, not just the evidence but they want the process. it is also about creating
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experiences. people shopped online and if they go into a store they are looking for an experienced, advice, something they can't get online. when it comes to getting your name out there, versus the very strong established historical brands, i mean, you established historical brands, i mean, you have worked for those in the past, so you know that business extremely well? i think the agility comes from having ambassadors and users, people using the product, as you have discovered. people will talk about it, it is word of mouth. celebrity ambassadors for you 7 talk about it, it is word of mouth. celebrity ambassadors for you? i don't know, a famous person who says, i can sleep now, and they put it all over your twitter account, social media... yes, that helps. if a high—profile person says it gives an uplift in sales, but actually what we see is it is an organic process , we what we see is it is an organic process, we see rule across the world talking about the products on
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their own social media, and this groundswell is how we are actually managing to compete with the big businesses. interesting how social media does help, but i have to say so media does help, but i have to say so good to have you on the programme. thank you for speaking to us programme. thank you for speaking to us today. you will spray that all over your body later? nomad sleep spray over your body later? nomad sleep spray will help me! i think it is an interesting concept, it is true, how much you sleep, how you feel, they are all connected. just talk to our make—up team at 4am. quite! they literally saw the make up at my face in the morning. ok, let's move on. —— the literally throw it at my face. a little more than a week ago airbus issued a stark warning about the consequences of a bad brexit deal. our very own theo leggett spoke with airbus's chief operating officer at the farnborough airshow — and asked about what the company would like to see. i think the prime minister is committed to doing that. i think from the discussions we've had with her, she understands the key issues from an airbus point
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of view, which is frictionless movement of components, and our ability to maintain the uk's role. sol so i think there are continuing political battles. i'm not a political battles. i'm not a political expert, i'm an engineer. but from an airbus point of view we are very encouraged but from an airbus point of view we are very encouraged and hope it continues to move in that direction, and obviously we also have to send the same message interview the intermission, so they understand the importance of finding a practical solution. looking globally, trade tensions are solution. looking globally, trade tensions a re clearly solution. looking globally, trade tensions are clearly escalating. there is the prospect of a full—blown trade war. how worrying is that for you? i think i would agree with the comments from boeing yesterday. i think a trade war is in nobody‘s interests, it is a zero—sum game that will affect everyone, so our encouragement would be we have again as frictionless trading relationship as possible. that was the operating officer of airbus. as promised... mike is back to look through the papers. they are stories to go on this one
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really caught our attention. broadband speeds. you would issue my big city is the place to be, but a p pa re ntly big city is the place to be, but apparently not? no, you would naturally expected to be big city versus a rural area divide. this study from the financial times suggests actually it is inner city versus suburban areas, the bigger problem. which, you know, is not naturally what you would expect to see. we have asked lots of people to tweet us about this. that is interesting, inner—city. i read an article the other day that said it in madagascar has better broadband coverage than the uk and france and many other european countries. why is that? i think it is because they have recently laid the fibre cables, soi have recently laid the fibre cables, so i think it isjust your have recently laid the fibre cables, so i think it is just your product than the uk, but, you know, ironically enough, there is plenty
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of growth potential in madagascar. i thinkjust over 2% of the population have access the internet. we have lots of tweets, one from pakistan here. "in some cases in pakistan cities are overloaded with users and villagers have normal or less users." i think they are saying the reason cities are seeing better broadband, sorry, rural areas are, is because they have fewer people using it. i think that comes out in the study as well. and i think part of the reason for a rural areas being better if they have created self—help groups, either to lay the ca bles self—help groups, either to lay the cables themselves or to get companies to do it for the local area. you have high quality cables, and less usage, obviously... someone called jan, it in the hills around swa nsea called jan, it in the hills around swansea and it would be quicker to use royal mail than the internet! or pigeon! or this one. use royal mail than the internet! or pigeon! orthis one. "a use royal mail than the internet! or pigeon! or this one. "a surprise to me rural areas have better service. lucky to get anything above a
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snail‘s pace at my office." will is the? hejust snail‘s pace at my office." will is the? he just says snail‘s pace at my office." will is the? hejust says rural, basically, but ultimately i think broadband companies need to up their game, it is important —— lee ridley? companies need to up their game, it is important -- lee ridley? yes, major issue. especially with more people working from home. —— and we are is he? it is absolutely critical. critical to a lot of those businesses, yes. ithink critical. critical to a lot of those businesses, yes. i think the more folk as it gets, the better, and hopefully we can all get better access whether we live in a rural area, inner—city or in the suburbs. mike, thanks for being with us today on business live, thanks so much. another very busy day but it has been fun, great. thanks so much for watching. take care. have a really good day. bye—bye. pillow. i fairly
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pillow. ifairly similar pillow. i fairly similar day with the weather compared to yesterday —— hello. the chance of a few showers here and there. most of those focused to scotland, northern ireland, wales and the midlands this afternoon, but for most of us it will stay dry. looking at the satellite imagery this morning, you can see some cloud across the uk at the moment. you may be waking up to a bit ofa the moment. you may be waking up to a bit of a grey sky, but that will clear and there will be some sunshine poking through from time to time. as mentioned, the risk chance of some showers really for northern ireland into scotland, later this afternoon across wales and the midlands. those will be few and far between. for most it will stay dry and temperatures this afternoon actually fairly similar to yesterday, about 19—21d in the north, up to about 26 celsius for the south and east. through the night, any showers tend to disappear
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and we are left with clearing skies into the early hours of thursday morning. temperatures down to around 10-12 in morning. temperatures down to around 10—12 in the north, 13—15 further south and east. again, fairly comparable for sleeping really. similarto comparable for sleeping really. similar to last night. going into thursday, we have the system moving in from the north—west. that will gradually spread into scotland and northern ireland. there will be some sunny skies in the morning. the cloud certainly thickening up into the afternoon. for england and wales, well, much less cloud around than today, with some sunshine and the heat will start to build up again for england and wales. look at the orange and red compared to the yellows further north and west. about 19, 201 degrees here. with england and wales, temperatures getting into the mid—to high 20s —— 21 degrees here. this weather system on friday will move further south and east word. it will break up as it pushes its way into england and wales, but there will be some rain
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moving into england and wales. some showers into the afternoon. staying quite cloudy in the north and west, quite cloudy in the north and west, quite hot and humid quite cloudy in the north and west, quite hotand humid in the quite cloudy in the north and west, quite hot and humid in the south and south—east and actually temperatures here, again, 25, 20 eight celsius, the chance of some heavy thundery showers but again temperatures just a little lower —— 28 celsius. the weekend is looking mostly dry and warm. if anything, temperatures will start to rise again into the weekend and next week. bye—bye. hello. it's wednesday, it's 9am, i'm joanna gosling. welcome to the programme. theresa may's facing yet another difficult day. after seeing off a bid by conservative rebels over brexit, the tories are facing the wrath of a lib dem mp who's on maternity leave with her four—week old baby and is accusing the conservative party chairman of breaking an agreement with her not to vote on brexit. we'll be speaking to two mps who have recently had babies
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about how it works when you're on maternity leave and there's an urgent vote. a high courtjudge will rule this morning on the privacy case brought by sir cliff richard against the bbc for the way it covered a police raid at his home in berkshire. sir cliff, who denied a claim of historical sexual assault, was questioned but never arrested or charged. we'll bring you that ruling when it comes. sexting and not drinking alcohol — does this explain why
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