tv Business Briefing BBC News November 19, 2018 5:30am-5:46am GMT
this is the business briefing. i'm sally bundock. the brexit action moves to brussels, where the 27 remaining countries meet to discuss the draft withdrawal agreement and finalise a joint political declaration on future relations between the eu and uk. no deal due to the us—china trade war — apec members fail to agree on a joint statement for the first time in its history. and on the markets, it's a lacklustre start to a new trading week with the lack of progress on trade between us and chinese officials disappointing investors. the past week has been dominated by the fallout from the draft brexit agreement. what i'm sure i do not need to remind you.
—— but i'm sure i do not need to remind you. today, ministers from the eu 27 are meeting to discuss the deal, and finalise the joint political declaration on future relations between the eu and the uk. so what are the big concerns for europe? first up, the divorce bill — the draft withdrawal agreement includes a "financial settlement" from the uk, thought to amount to around £39 billion, or about $50 billion, which is contingent on a withdrawal agreement being signed. northern ireland is also a key concern for the eu. it exported around $6 billion worth of goods to the eu in 2017. the draft agreement says the eu would work with the uk to agree a trade deal in order to avoid physical checks on goods at the border. if talks fail, the so—called ‘backstop‘ measure would be used
to keep the border open. the uk's biggest eu trading partners, like france and germany, have also had worries over the maintenance of so—called level playing fields on competition, state aid, employment, environmental standards and tax. this would ensure that uk businesses don't undercut eu industry. and the draft agreement gives london's financial centre only a basic level of access to the eu's markets, similar to that enjoyed by us and japanese firms. it would be based on the eu's existing system of financial market access known as equivalence — a watered—down relationship that brussels has said all along was the best arrangement that britain can expect. let's get more on this story. life to brussels. —— live to brussels. paul hofheinz is president
of the lisbon council. thank you forjoining us. tell us what europe may decide about the d raft what europe may decide about the draft withdrawal agreement. of course officials in the eu and uk have agreed on it and when it comes to the 27 member states and the eurozone finance ministers who are meeting today as well, what would they think about it? it has been a lot of confusion about what was being negotiated here and what i mean by that is the european union isa mean by that is the european union is a law —based alliance, we have treaties and agreements, nothing happens that doesn't go through this complex receive go where you have 27 oi’ complex receive go where you have 27 or currently 28 but soon to be 27 sovereign states agreeing a position together. it is absolutely natural that the negotiators would be aware of that all the way long. my point is that they have a deal as nothing will surprise anyone on this side. what i find odd is the uk side, it
will think it is a handful of chap getting around a table swapping chips with each other but it isn't like that at all. —— chaps. we have a deal now and it will be approved on this site almost certainly but we are wondering if the uk will approve it or not and there is a polite silence while we wait and see how the debates resolve themselves on the debates resolve themselves on the uk side. i was going to ask you that, what those — when you discuss this issue with leaders in brussels, what they are making of the difficulty in the uk, difficulties probably, underwhelming it a bit, theissue probably, underwhelming it a bit, the issue that this may not get through parliament, the withdrawal agreement. i would point out two things, one is the silence in the unity on this side, no one is doing anything to provoke or harm or even allow themselves to be dragged into this debate in any way. things are quiet on this end, obloquy. behind the scenes, the chatter in worry but
a little bit of politics. i hope you noticed donald tusk, the present council, gave an impromptu race conference in which he said in his hope, the best outcome —— outcome of all would be no deal at all, that isn't policy but what he was trying to say is the member states continue to say is the member states continue to find this tragic. others, particularly people who have been negotiating this a long time, going back to david cameron's treaty provisions, others who are perhaps in favour of a speedier deal than that. at the position remains united and that is the most impressive part of this. theresa may is trying to get business leaders on board, getting the confederation of british industry on board as well as others and the people who speak to you in europe, what are their key concerns? this is leaders are business leaders
and regulators are regulators and i don't think we want to see anything that harms the economy, that is very much the sort of logic going on behind all of this, isn't it? this is how theresa may got in this difficult position, she does not wa nt to difficult position, she does not want to harm british business. the concerns on this side with people wanting to see a good relationship going forward but at the end of the day, a very carefully negotiated trading relationship, commercial relationship, political relationship, political relationship, a treaty negotiated between 27 states meant something and you do not start giving little christmas tree ornaments away to one of the country when they wake up one day and decide they want to live, it was never going to happen. a moment of the type we have today is inevitable but let us see how it results. paul, thank you so much for your time. the apec summit in papua new guinea has ended without a joint communique because of deep divisions on trade between its members — in particular, between the us and china. washington is trying to combat beijing's rising influence
in the region and announced plans to redevelop a naval base with papua new guinea and australia in the pacific, as well as a $1.7 billion investment to build electricity infrastructure across the country. but china is also investing heavily in papua new guinea to win its hearts and minds. from port moresby, karishma vaswani reports. a grand welcome for a new friend, papua new guinea rolled out the red carpet for china's president xi jinping, in town for a pick and a state visit. thousands of people have gathered here just to catch a glimpse of the chinese president. this will of ip is driving down has been paid for by beijing and is the same thing across the country. 90% of the roads here are being built in some way or another with china's help. this is infrastructure that
papua new guinea really needs. china has not been shy about showing off where it has spent its money, roads, highways, convention centres, all bankrolled by beijing, not the way it does business here with little transparency has also raised anti— chinese sentiment. but there are locals here to see china as a friend. this lady is the ambassador for the china papua new guinea friendship association. chinese businesses he appalled their money together to fund it. we need something there to help us, people the chinese people coming into the country and getting everything that papua new guinea owns but it has to change and position has to change about chinese people here in png are here to help. australia has traditionally been papua new guinea's biggest donor and investor but china's presence here is growing rapidly and is increasingly visible, and fears are growing as to what beijing wants from the region. you ta ke beijing wants from the region. you take a look at what china has done
in sri lanka, taking ownership of a 99 year lease of a port that they themselves built and you can draw themselves built and you can draw the thread out to the pacific. i think that is the great concern, but they will get a foothold somewhere in the pacific and it may be opportunistic as to where it may be an overtime they will slice of the line to a point where in 20 or 30 yea rs line to a point where in 20 or 30 years time we have a fully fledged military installations, in the pacific. that is why this country is so pacific. that is why this country is so important to the us and its allies america is investing in a new label based, electricity and into the infrastructure here, the battle for influence between these two superpowers is benefiting papua new guinea for now, but it could also determine its direction in the future. karishma vaswani, bbc news, port moresby, png. now, let's brief you on some other business stories. the reserve bank of india and the government are trying to iron out their differences ahead a crucial meeting later today with the bank's board of directors. members of prime minister narendra modi's administration have reportedly been pressuring the rbi to relax lending requirements
and use excess funds to boost the economy before national elections next year. media reports say the central bank's governor urjit patel may resign in protest. the uk government has welcomed plans by a french communications firm to build two new satellites in the uk. eutelsat is expected to sign a contract with airbus today, worth $218 million, to make the satellites at factories in portsmouth and stevenage. trading is seen in terms of volumes today and you can see slight gains in asia at the moment. i will see you soon. talking more about facebook now.
facebook will announce new measures later to help support britain's local newspapers. our media editor amol rajan reports. just a few decades ago work in a local paper came with esteem, influence, and a solid wage. titles like the independently owned express and star in wolverhampton were treasured in their communities. these days the importance has grown further but their commercial cloud is diminishing. now if you want a second—hand car give look online and if he wants local news, fewer and fewer turned to print. it is challenging. the difficulty we have is all large proportion of people who are reading are no longer paying for the content, it is a print audience that are and it is how do we start to monetise the digital sector? some form of subsidy seems
inevitable. it may come from silicon valley. facebook say they want to help train local reporters just as the bbc now do, and at this recent training camp in cardiff google were teaching freelancers in the way of new digital tools. google is trying to do is figure out how to partner with local newspapers to find the new digital asis models, help them find new advertising streams and making sure we supply them with a technology that helps them generate the digital advertising. industry is on its knees and old hands blame silicon valley from stealing their content silicon valley from stealing their co nte nt by silicon valley from stealing their content by two silicon valley retreated it would not bring local papers buck. last week 250—year—old johnston press went into administration, triggered by an unmanageable £200 million plus debt. the new company run by the bondholders have been set up. it will radically pay down the debt and mostjobs should be saved for now. everyone knows local news that scrutinises power and nourishes the bonds of community is vital to
democracy. it is just that nobody knows who will pay for it. amol rajan, bbc news. this is the briefing from bbc news. the latest headlines: the british prime minister theresa may will speak to business leaders in london later today, kicking off what she's described as a "critical week" for the uk. emergency workers in california are still struggling to contain wildfires that have devastated large areas of the state over the last 11 days. heavy rain is now forecast, bringing new fears of floods and mudslides. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the independent which says uk prime minister theresa may faces an embarrassing defeat over plans to force her into publishing data comparing britain's economic prospects under her brexit deal to staying in the eu. the south china morning post leads with the asia—pacific economic cooperation summit, which has ended without agreement on a joint communique for the first time
in its history. the impasse was blamed on escalating rivalry between the united states and china, which dominated proceedings. in the ft, tim cook, apple's chief executive, has said new regulations for the tech industry are "inevitable" following a series of scandals which has led to the intensifying of political pressure on the company's rival, facebook. the guardian business pages look ahead to black friday and predict britain's battered high streets will take another pounding as more shoppers look for deals online during the crucial pre—christmas sales period. the atlantic looks at how tech giant google is now imagining devices that would scan and analyze the surroundings of your home, as well as in your bathroom. based on the information, the company could then offer you content and products based on what they detect. the mind boggles!
and finally, how do you fancy a handful of smoky bbq roasted crickets? uk supermarket giant sainsbury‘s will become the first to begin selling edible bugs. so let's begin. with me is eileen burbidge, who's co—founder and partner at passion capital, an early—stage venture capitalfirm. brexit in the independent. different papers on different issues. one is about the leadership contest and that could finish her. she could be defeated over plans to force her to publish data that compares britain's economic prospects under her deal to that of staying in the european union. and it could be embarrassing, of course, the vouchers we're worse off under