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tv   Business Briefing  BBC News  September 12, 2018 5:30am-5:46am BST

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this is your business briefing with me, sally bundock. apple's instructed to move production to the us by president trump as the tech giant prepares to launch it's latest iphone. and, as the 10th anniversary of the colla pse and, as the 10th anniversary of the collapse of lehman brothers approaches, we measure how the financial crisis has affected you. and financial markets around the world a re and financial markets around the world are struggling to find direction today, we have seen losses in the asian markets, that's the close on the dow the night before. it's a big day for apple. the company is getting ready to unveil a suite of new blockbuster devices as it fights for supremacy in the cut throat tech world. but it may have an even biggerfight on its hands, and this time not from its corporate rivals. the company has found itself
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in the middle of the clash between the white house and beijing, over trade. president trump is planning to impose new tariffs on $200 billion worth of chinese goods and the chinese have promised to retaliate in kind. that's alarmed apple — because many of its products are made in china — and it has written to us trade officials warning that products like the apple watch, the airpod and mac mini would be hit by us tariffs. it said this would lead to higher prices for us consumers and hurt the compa ny‘s competitiveness. that prompted a response from mr trump himself. he tweeted that there was a simple way forward for apple — it should bring production home to america. let's get more on this story from out north america technology correspondent, dave lee, who's at apple's new headquarters in california. so, before we talk the products,
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dave, has apple reacted to the advice from the president?m dave, has apple reacted to the advice from the president? it hasn't publicly reacted to that, sally, but the idea that apple could simply move manufacturing of the iphone device to this country is pretty unfeasible, because such is the low cost of making those kind of devices in china, bringing it back could increase the price of the iphone by as much as double, some think, so apple would not see that as a viable option, despite what president trump thing. it is an interesting twist in the spat between the us and china, but let's talk about these new products, what's expected 7 but let's talk about these new products, what's expected? a range of things, this is the time of year when apple announces its updated iphone and we expect them to do that this year, we expect three new
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devices, one of which might be a big premium phone that could be more costly tha n premium phone that could be more costly than the current iphone x, which was $999, which made it at the time the most expensive iphone apple ever had. it might eclipse that with this time around. it might launch a new apple watch, launched in 2015, it had a slow start, apple didn't release the sales figures, but it seems to gain momentum, so apple hopes a new version of that could be a big hit for christmas. also we might, sally, see a couple of updated ipads based on a couple of lea ks updated ipads based on a couple of leaks out of this event already but of course we won't know for certain until they tell us for sure later on. as you say, some of the products are on. as you say, some of the products a re really on. as you say, some of the products are really expensive, but they are rumoured as well to be looking to launch a very low—cost macbook and the thinking is students, young people, those who are trying to
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further their education? yes, at the moment apple doesn't have a single la ptop moment apple doesn't have a single laptop model under $1000, so the problem is when you're looking at education, and students, people who are frankly not prepared to spend more than $1000 on a laptop, which is many of us, it leaves a hole in the market, and that is filled by other manufacturers, even google, with a range of lower—priced computers that it targets specifically at education in many cases. so we've heard later in the year, maybe not this event, later in the year apple is considering bringing out a sub apple laptop, similarto bringing out a sub apple laptop, similar to the macbook, which is what people expect, although we won't hear about that in particular of the event they are running this week. all right, for now, thank you, dave. watch this space and keep an
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eye on him on twitter, life on the bbc today, and he is tweeting throughout, so follow him there too. let's talk about lehman brothers, it is seen as the beginning of the financial crisis, i remember it well, we were covering the story. with more than $600 billion in assets, the bank filed for bankruptcy. and when it did, global stock markets went into free fall and sparking the worst economic slowdown since the great depression. ten years later, wall street has changed but the legacy of the crisis continues. samira hussain reports from new york. this is a pivotal moment for america's economy. panic selloffs on world financial markets. no—one has seen anything like this. mass bailout american taxpayers. we are facing one of the most serious financial crises in this nation's history. but if there was a singular event that started america's financial crisis, it would be the collapse of this bank,
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lehman brothers. that is my lehman brothers running jersey. this table is full of memories for lynn gray, she spent 11 and a half years working at lehman brothers. i was heartbroken. i would never would have left, i would have stayed there until they kicked me out. well, they did take me out! but i would have stayed there for a very long time. it was one of the best places i had ever worked. a decade later, many have not forgiven lehman brothers. although the financial crisis was a result of several bad acotrs, when the bank ultimately filed for bankruptcy, it set off a chain reaction. (bell rings). on monday, september 15, when lehman brothers filed for bankruptcy, the dowjones fell 500 points. the biggest one—day drop since the terrorist attacks of 9/11. watching it all happen was peter tuchman, a trader
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at the new york stock exchange. what was it like for you to be on the floor and watching that happen on the big board? it is kind of funny you ask that because i was actually standing here in this spot where we are doing this interview, and things were actually going crazy and i threw my hand up in the air like this and a photo was taken. there was anxiety, there was fear. the financial markets did recover, and have since broken many records. but for some, the legacy of the crisis is still personal. can you imagine a day where you can... wear it again? sure! i might wear this on september 15th. samira hussain, bbc news, new york. so, could it happen again? a question, ahmed put to the governor of the bank of england mark carney.
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if we are complacent, of course it can. history teaches us that there are financial crises from time to time around the world. we can come up with 60 or 70 examples over the last century. can i push you a little bit more on what the new risks might look like, the areas where the concern might be about what could go wrong in the future? british households have worked hard and paid offa households have worked hard and paid off a lot of get over the last decade, that's been tough, they have put themselves and the system as a whole in a better position but the level of debt is still relatively high even after that. and there are pockets where there is quite significant debt. and so what we get concerned about is those areas taking ona concerned about is those areas taking on a lot more debt. there are risks around brexit for the financial sector and here is something that has changed from ten yea rs something that has changed from ten years ago, we are absolutely upfront about those risks, the view of the
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risks, we have stress tested the banks against those risks to make sure they have enough of a safety net in terms of their own funds and liquid funds in case we had an no—deal brexit, the third class of risk which is new in the last decade is related to cyber security. the defences have to be in place and we also have to have plans for if a bank was to be knocked out because ofa bank was to be knocked out because of a cyber attack, how can we keep the system functioning and serviced to customers in that event, but one of the bigger risks for the global economy are the developments in china, which is a great source of growth to the global economy and it is an absolute economic miracle, lots of positives. at the same time the financial sector has developed very rapidly and it has made many of the same assumptions that were made in the run—up to the last financial crisis. interesting, the comments
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from mark carney. we have so much more on all of this on the website, including the analysis i mentioned earlier so dig deep and look at what we have for you on bbc online. and if you're planning today to fly to from germany with ryanair. take note. the airline says it will cancel 150 flights out of 400, due to a 24—hour strike by pilots and cabin crew. the row over pay and conditions follows a series of strikes over the summer. affected passengers will be offered alternative flights, the airline says. so, if that is your plan today, check. a quick look at the markets today, what's on the mind of investors now? we mentioned the mines ten years ago, is the trade war that's going on between the us and china, this has been a theme all week for asian markets. they have been under pressure most of the week, apart from japan, with a weaker yen, elsewhere the concern about what
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might come next from the white house, the $200 billion of tariffs on goods threat, will it become a reality? i'll be back in a moment. free to use cash machines are being closed at a record rate according to the group which operates them. the banking alliance link says 250 per month are being shut down because we are taking out less cash and becoming less economic to run, or they are, should i say. simon gombert has more. they are essential to get hold of cash, but often we are not bothering, just paying by card instead, plus the fee our banks have
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to pay cash machine operators each time we do use one is being cut. the uk's diminishing ranks of free to use cash machines still number more than 53,000, but in the five months tojuly 1300 than 53,000, but in the five months to july 1300 closed, than 53,000, but in the five months tojuly1300 closed, 76 of them disappearing even though they were supposedly protected. link, which co—ordinates the network, has tried to protect free machines in remote areas by persuading banks to pay a higherfee per areas by persuading banks to pay a higher fee per withdrawal to the operator, but some have been removed a nyway operator, but some have been removed anyway and in 21 cases there was not even a post office nearby to get cash over—the—counter. even a post office nearby to get cash over-the-counter. if consumers keep using cash less and less, then yes, atm numbers will keep going down and what link needs to do is make sure that it doesn't come out off the quiet rural areas and if we find we can't do that then we will have to go and ask for help from regulators. the regulator for cash machines, the psr, says it is concerned, and will force link to do
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more. one possible solution might be to allow link to run its own cash machines, paid for by the banks. we have a lot more on breakfast, coming up in about 17 minutes on bbc 0ne, including the rest of the day's business news and sport and i will be back injust a business news and sport and i will be back in just a second with the news briefing, so stay with us. this is the briefing from bbc news. the latest headlines: america's east coast prepares for hurricane florence. the category four storm heads towards the carolinas with winds of 225 km/h. in an exclusive interview with the bbc, italy's deputy prime minister sets out his plans to deport most of their migrants. now it is time to look at the stories that are making the headlines in the media across the world. we begin with the financial times,
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and could the us—china trade war trigger a financial crisis? a warning from the imf that the stand—off threatens emerging markets. staying with financial press and the city am. "keep cam and carry on" — that is the main headline, as the paper reports bank of england governor mark carney will stay in the job post—brexit. and another big story on their front page — the widening gap between bankers' bonuses in the us and the uk. to catalonia now, and the newspaper la vanguardia. it shows some of the estimated one million people who took to the streets of barcelona amid renewed calls for catalonian independence from spain. let's look at the belfast telegraph, and it says companies including
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coca—cola are calling for same—sex marriage in northern ireland, amid concerns it is hard to retain lgbt workers. and finally, el pais, the spanish newspaper, with what might become a new hipster holiday trend. it reports on the winemaker charging people 25 euros to be grape harvesters for a day. the thing that is popular on holiday, apparently.

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