tv BBC Business Live BBC News March 11, 2019 8:30am-9:01am GMT
you're watching bbc news at 9:00am with me, carrie gracie. the headlines... pressure mounts on boeing after the ethiopia air disaster. china grounds all its 737 max—8s, for urgent checks. hello. seven british nationals were among this is business live from bbc news, with ben thompson and sally bundock. the 157 people killed in the crash. china grounds the model of aircraft they include un workerjoanna toole. that was involved in sunday's deadly crash in ethiopia. her father paid tribute to her. live from london, that's our top yeah, i'm very proud story on monday 11th march. of what she achieved. it's just tragic that she couldn't carry on to further her career and achieve more. downing street says talks between the uk the 737 max 8 went down and the european union minutes after take off, are deadlocked just a day before killing all 157 people on board. mps will vote for a second time it's the same model involved in last on theresa may's brexit plan year's lion air crash in indonesia. we will have the latest on that. also in the programme... ousted nissan chairman carlos ghosn asks a tokyo court for permission
to attend this week's board meeting of the japanese carmaker days after he was released on bail. a new trading week under way in the markets and so far, so good. and drinking your way to better health. it seems protein shakes are everywhere right now, but what's in those health—food and weight—loss supplements? we'll speak to the norwegian company that says plant—based food can help. and today, as sales of self—help books reach record levels — up 20% on last year — we want to know, are we more stressed than ever before? is your life busier than it used to be? let us know, use the hashtag bbcbizlive. a very warm welcome, so let's get started. the boss of ethiopian airlines has
said it's too early to say what caused sunday's crash of one of its planes. all 157 people on board were killed when it came down just minutes after taking off from addis ababa, headed for the kenyan capital, nairobi. but already, there are questions about the type of aircraft involved, with china ordering all 737 max 8 aircraft to be grounded. ethiopian airlines has followed suit. that's the same model as the lion air plane which went down off the coast of indonesia in october, claiming the lives of all 189 people on board. the cause of that crash is still being investigated. the boeing 737 max 8 has only been in commercial use since 2017 and has been sold as part of a new generation of more fuel—efficient aircraft. so it is relatively new. it's from a new family of aircraft which boeing claims is the fastest—selling
in its history. there are more than 11,700 unfilled orders on boeing's books, from more than 100 airlines worldwide. and all of them will be taking a keen interest in the latest investigation. 0ur africa business editor, larry madowo, is at nairobi'sjomo kenyatta international airport. of course, this is less than 2a hours since this terrible crash occurred and as was mentioned, investigations are well under way now, aren't they? investigations are under way and boeing has released a new statement saying it is studying all aspects of its investigation and is cooperating with authorities in ethiopian and under direction of regulators in the us. at nairobi airport, a new ethiopian airlines ﬂight airport, a new ethiopian airlines flight decided, they are not using that 737 max 8 because they have grounded their fleet. they have about six and on order nearly 30 more that was supposed to come on strea m more that was supposed to come on stream and we don't know if that
will go ahead. all right, thank for 110w. will go ahead. all right, thank for now. the latest from nairobi's international airport. our business correspondent is theo leggett, and hejoins me now. clearly, our thoughts with those 157 passengers and the families of those caught up in the tragedy, but at the same time, attention has turned to the plane itself and its maker, boeing, what happens next? commentators are out to jump to conclusions quickly and parallels have been drawn with the lion air jet in indonesia and there are superficial similarities, where they happened, the fact it was a brand—new 737 max 8 involved in both cases. but investigators were working on a more methodical way and they will not rule anything out. the first part is to look at the accident‘s site and see what evidence can be gathered there, take that back. boeing will take part in all this, and trade work out what
happened. they will look for the ﬂight happened. they will look for the flight data recorder which will have important information on it. we are just looking this morning, shares in the french aerospace group, the plane's engine maker, are down pretty sharply. boeing clearly trying to work out now what caused it. what does it mean for boeing? well, it depends what happens now. if there is a case for grounding the 737 max 8, that would be very difficult for boeing. it has thousands of them on order and the airlines want those aircraft. this isa airlines want those aircraft. this is a heavily re—engineered version of the 737 workers, it is very fuel efficient and is a big seller for the company. but it is not as though companies can order an airbus instead, orders are made years in advance, pilots have to be trained and airbus and boeing had very com plete and airbus and boeing had very complete order box and cannot make planes quicker. so the concern is what happens now, whether there is any sort of a fault in the 737 max 8
01’ any sort of a fault in the 737 max 8 or it is another factor which caused the accident. at the moment, we simply don't know. what you make of the idea of china growing —— grounding boeing jets, might there be something else at play given the ongoing trade war between the us and china? yes, it could be simply safety consideration that these two accidents have happened involving new aircraft, or you could be a little bit cynical. aircraft purchases are usually major parts of the trade treaty so china might cynically want to use this as a way of putting more pressure on the united states, or it could be simply that they say it is with the inconvenience to passengers that this will cause in order to protect their safety because right now, passengers might not want to travel on this aircraft. yes, thank you for explaining that. you will stay across this story. the details on what we know is so far in that tragedy that took the lives of 157 people. let's take a look at some
of the other stories making the news tesla is increasing the price of its electric cars, after scaling back a store closure programme that was designed to save money. the carmaker says the 3% price rise will not apply to the new mid—market model 3. earlier this month, tesla said it would close stores to fund a cut in the price of the model 3 in the us to $35,000. ghosn turkey went into recession at the end of last year, according to new economic data, underscoring the effects of last years meltdown in the lira and a sharp rate increase by the central bank. the economy contracted 3% in the last three months of last year, according to the turkish statistical institute. the mayor of london, sadiq khan, and environmentalist groups are due in court today as they to try to stop the british government's plans to expand europe's busiest airport, heathrow. the high court in london is to hear five cases over the next two weeks in which complainants will argue that the process used to approve
a third runway was flawed, and that it goes against obligations to tackle climate change. now to asia. in the last few minutes, we've heard that a japanese court has refused the former boss of nissan permission to attend this week's board meeting of the carmaker. yes, it looks like he is not going to make it, he wanted to be there tomorrow. this is of course carlos ghosn. carlos ghosn was unexpectedly released on bail last week, as he awaits trial on charges of financial misconduct, which he denies. 0ur asia business correspondent, karishma vaswani, is following this from singapore. a surprise last week that he got the bail, it was a hefty price tag that came with it. may be no surprise he was denied permission to go to this meeting. yes, certainly, i don't think it is that much of a surprise, although the official confirmation that he has been denied has yet to come from tokyo courts. this
information is coming from one of the biggest, the official broadcaster there, the nhk agency. and mr ghosn's lawyers had been looking for permission for him to attend that board meeting on tuesday and if he had been given this access,it and if he had been given this access, it would have been the very first chance in fact for him to face his former colleagues since he was arrested back in november. and dismissed as chairman of the firm over allegations of financial misconduct, as you are saying. but now with this news from nhk, given that he could have his request denied to attend that board meeting, it does seem like that opportunity, he won't have that opportunity to do that. thank you for now. that story is ongoing, we have covered every twist and turn. let's look at markets in asia, they had a good session, closing at nearly 1%,
japan nearly half. that is the end of the week in the united states on the dow. and this is europe now. positive sentiment in asia continuing. but let's not get overexcited, volumes are pretty then, certainly in london, with so much uncertainty about this week because tomorrow is a meaningful vote number two on brexit which we will talk about in a second, but needless to say, the pound is off to a shaky start to the week, the pound sterling. lots of other things going on as well, notably in the united states, president trump expected to present his budget for the year ahead. and samira hussain has the details of what's ahead on wall street today. on monday, the us comerce department will release its retail sales numbers for the fourth month of january. given that two thirds of the american economy depends on consumer spending, these numbers are important and closely watched. in december, retail sales fell by 1.2%. also happening on monday, the white house will release president donald trump's budget
proposal. now, this will serve as the basis for a debate with congress about the government's spending for the next fiscal year. if no agreement can be reached, then spending will be kept at the levels established back in 2011. the last budget deal — which increases government spending by nearly $300 billion over two years — expires september 30th. from new york, with a look ahead to what is happening in the us. joining us isjeremy thomson—cook, chief economist at the currency exchange firm world first. it is nice to see. staying in the us, trump and the budget, what do we expect? new fiscal plans coming out for the trump administration, they we re for the trump administration, they were heavily delayed by the partial shutdown, the longer shutdown in us political history, we're getting the data that was held back. whether we will see the trump go forward with additional spending after those huge
tax cuts from the trump administration for upper—middle income earners, over the course of the past couple of years, that added a caffeine boost to the us economy which is starting to fall out, the data, but whether he goes again ahead ofan data, but whether he goes again ahead of an election at the end of 2020. whether we start to see that as the largest proponent of his election campaign, as, i will make things better for you by election campaign, as, i will make things betterfor you by allowing you to spend more of your money. yes, we are looking ahead to that next election and also trying to fulfil some of the premises from the first election. they are caught in the middle at the moment. yes, that is the kind of thing legislators and the house of representatives and the senate will look at, can i vote against tax cuts close to an election, but also, you have to believe the trump administration will try to tie funding for the border will do everything as much as they can because that is his pet project at the moment. how nervous are you about this week in the uk given what is going on in parliament? it will be a really busy
week, we have started calling it hell week because of the hours we will have to work. three very important votes. we don't think the one on wednesday, the no—deal brexit vote goes anywhere, we don't think. what about tuesday, don't fast forward to wednesday?” what about tuesday, don't fast forward to wednesday? i still don't think she has the votes to pass that meaningful vote quite yet. so tuesday will be... yes, we'll will have an extension by thursday. 0h, my goodness! it is too early. good luck with hell week. where else would you want to start than with us? with you! of course. thank you. still to come... and drinking your way to better health. with protein shakes seemingly everywhere, we'll speak to the norwegian company that says
plant—based food can help. you're with business live from bbc news. first, a major un environment conference gets under way in kenya today. 193 countries and many business leaders will be there. one of the key questions will be what businesses around the world can to do protect the environment with more sustainable ways of working. david symons is director of sustainability at the engineering consultancy wsp. good morning, may be clarify what sustainability is because we talk about this a lot but many businesses will struggle to define it. good morning, thanks for having me on. very simply, sustainability in a business context is about creating a prosperous, resilient society that uses resources in a responsible and careful way. 0k,
uses resources in a responsible and careful way. ok, but in uses resources in a responsible and carefulway. ok, but in terms of this event taking place in nairobi today, the un has a huge involvement. they want it to be as high—profile as possible, but with big players not listening like president trump, what are your hopes? i mean, government has a role to play in delivering a sustainable society, so do wheel as consumers. business also has a huge role. if you just look at the us, for example, government at federal level might takea example, government at federal level might take a step back, states certainly are stepping up and there are over 100 us companies committed to cutting their own greenhouse gas emissions to the level required to hit one and a half degree climate challenge. we are in a bit of a dilemma many are industrialising and developing nations and they say western nations were allowed to pollute and emit carbon gases and know you are saying that we can't, and that is part of industrialisation, isn't it? from a business perspective, it is a question of thinking about that as a
business innovation so rather than thinking about sustainability is a responsibility area, look at, how can you innovate your business, how can you innovate your business, how can you innovate your business, how can you develop new products and new services that let your business grow while also doing good to the planet? thank you so much. talking about the event taking place in nairobi today, taking over the next few days. this is the business live page, we told you mark ashley was trying to replace the board of debenhams and today the struggling retailer fights back and says it is in advanced negotiations with lenders about additionalfacilities negotiations with lenders about additional facilities of approximately £150 million, expect that so opera to continue. your‘re watching business live.
our top story: china has grounded all of its boeing 737 max 8 passenger planes for checks after sunday's crash of an ethiopian airlines flight. 157 people were killed when the plane came down shortly after take off from addis ababa. a quick look at how the markets are faring... this is what the index six —— the index looks like. we have said it before and we may say it again, it isa before and we may say it again, it is a really important vote for brexit, a series of votes, the first of which is on tuesday, to see if parliament will back the deal theresa may say she has brought back from brussels, whether the uk will leave the european union are much the 29th. -- leave the european union are much the 29th. —— on march the 29th. getting fit and trying to shed a few of those extra pounds is something many of us try to do as we head into summer. that drive is one of the factors which helps to make the global weight loss market worth more than $175 billion a year. and it's experiencing strong growth,
expanding at a rate of almost 7% a year. norvia is one new startup which is trying to break into the market. it's a plant—based product, based on what's called a very low calorie diet. dr lars hoie is the founder and chairman of norvia nutrition. hejoins us now. thank you for coming in, first, tell us thank you for coming in, first, tell us where you have created this shake. it wasn't about fitness or getting slim, it was more about health? yes, my family concern is cardiovascular disorders and a lot of self interest for myself and my family. i wanted to see whether it was possible to prevent this so i studied traditional chinese medicine for five years and one of the very important lessons i learnt was the soybean has this amazing effect on the cardiovascular system so i designed dietary products to treat risk factors for cardiovascular disease which mainly our lifestyle —related disorders. and these have
been on a steady increase, including overweight and obesity, which also leads to other diseases like type two diabetes and cardiovascular disorders. and in a market, as we suggested at the beginning, this is a very crowded market to be getting into now, there are so many weight loss supplements with so many protein shakes and things that will help you lose weight, things that help you lose weight, things that help you lose weight, things that help you gain size, how do you stand out and make sure your product is front and centre? well we have a superior product offering with norvia based on 30 years of research and product development, we are the leading university hospital in europe and the states, we have 33 publications and a phd behind this. and it is really, what we have done is to optimise the health benefits of the specialised proteins, fibres in the product to optimise the heart health benefits. and we brought that to market in norway and later to sweden and finland and denmark and
it has had, the products for weight loss which i have developed have had more than a 60% market share for 30 yea rs. more than a 60% market share for 30 years. that is because these products really deliver. they deliver what they promise, they work. but you know to -- but you know that, but the point is most people watching this may not have heard of norvia and what your product is, yet there are so many very high profile and well—known brands already in this market. some might argue that, actually, there isn't room for more. and also, this issue of people making their own plant based smoothies, pure vegetable and fruit at home, that is a huge trend as well. yes, that is correct. but we provide opinion offering. 0ne correct. but we provide opinion offering. one example is that we use only non—gmo ingredients so we can trace back our ingredients to the seed, what has been planted, how it
has been processed, which is very important, and to our production which follows almost pharmaceutical standards. we have a superior product offering, it lowers risk factors, use it myself, i have done for 30 years, these psy components. but you don't want this to be prescribed by the medical profession at all, do you? you want it to remaina at all, do you? you want it to remain a lifestyle choice. if it is about the health benefits, surely you would want gps and hospitals to say, this is what you should do? yes, those are products we are planning to launch later for the hospital market. but the weight loss product is clearly as a food supplement, which is the regulation, which is for all to see. and we also are which is for all to see. and we also a re interested which is for all to see. and we also are interested in pharmacy distribution in addition to the online sales we have currently. distribution in addition to the online sales we have currentlym is really good to talk to you, we could talk to more we have a lot to fit in, thank you for coming, best of luck with it. thank you.
japan s population may be falling, but it's a different story in the capital, tokyo. there are 13.5 million people living in the city, making it the most populous metropolitan area in the world. and that means demand for housing has increased. mariko 0i looks at the changes that are being made from high—rise apartments to micro—homes, tokyo is where architectural creativity has flourished. this house was built from 100% recyclable concrete, using volcanic material in place of sand. this is quite small, isn't it? mmm. how do you make it livable for people? well, we mainly think about three things. one is, it's a japanese concept. we're very careful about where the windows are, so you have this connection with the outside. and then we always think space in terms of three—dimensional thinking, notjust the plan. what is it like living with your parents, your grandparents and your great—grandmother?
he giggles in a city where demolish and rebuild has been the mantra, people are also increasingly finding value in transforming older buildings. this two—storey timber house belonged to fumika's grandparents, but following renovations, four generations of the family — seven people — now live under one roof. land is a precious commodity in a densely populated city. in striving to meet the needs of the growing population, tokyo is looking beyond conventional solutions. mariko 0i, bbc news, tokyo. a great story explaining how you fit a growing population into tokyo and more from that series a little
later. story emerged over the weekend in the uk, there has been a spike in the number of people buying self—help books because we are a p pa re ntly self—help books because we are apparently very stressed. it is at record levels and certain celebrities are making a lot of money of this. jeremy thomson—cook, chief economist at the currency exchange firm world first joins us again. have you written one? no, i am still talking to publishers. it says book shop owners are blaming political turmoilfor shop owners are blaming political turmoil for sending shop owners are blaming political turmoilfor sending customers in search of uplifting titles. a 20% rise in purchases of these books. people looking for self—improvement. whether this is a disdainful time, p0p whether this is a disdainful time, pop psychology about what people can do. have you read any? i can't say that i have. some are giving this netflix series about how to tidy your house and youtube videos about how people clean their houses.|j must invest the one i did get that i read like the bible was contented
little baby when i read my kids to help them get to sleep. like having it child life change, you may need the additional support. and therapy and professional help is very expensive. our viewers beg to differ, no one of those are in favour of self—help books. this says, it is the same as diet books and recipe books, a substitute for doing what needs to be done, essentially procrastination. norman says it is a new religion. les says, i was going to buy a book called how to cure your apathy, but i couldn't be bothered. that is a great joke, i couldn't be bothered. that is a greatjoke, thanks! i couldn't be bothered. that is a great joke, thanks! 0ne i couldn't be bothered. that is a greatjoke, thanks! 0ne viewersaid, who moved my cheese by spencer johnson is fabulous. you had heard of that? it is big in a city. i can't say if it is big in the city any more i have certainly heard of elements of cheese moving!m doesn't move here! it says in the fridge for a long time. thank you so
much and good luck with your busy week. that's it from business live today. yes, we are here tomorrow, goodbye. good morning, we had a real mix of weather yesterday, sunshine and hale, sleet and snow, strong winds and for the weekend, remaining u nsettled, and for the weekend, remaining unsettled, severe gales likely at at times, heavy rain in the forecast, but some drier and brighter weather. for today, the quieter state of the week, this ridge of high pressure becoming established which settle things down for today. towards the west, a weather system leaving its way in. one or two showers across north west england and scotland this morning. into the afternoon, shell is gradually disappearing. plenty of sunshine this afternoon. lighter winds compared to the weekend. cloud increasing from the west making a
sunshine turn hazy and make —— maximum temperatures up to 11 or 12 degrees. tonight, this area of low pressure to the south of iceland. isobars getting quite close together and weather fronts moving across the uk, through tonight. by tomorrow morning, rain into the north and west and quite strong winds. these are the wind gusts first thing on tuesday morning, up to 60, 65 mph. quite widely seen strong winds within that band of rain as it moves into the south east of england. hill snow expected, especially with showers as they move in behind. some speroni spells to end the day, but feeling on the chilly side. this area of low pressure remains on tuesday into wednesday, and look at the white lines. much closer together for wednesday morning, so really strong winds expected, with gales and maybe even see the gales
around scotland, northern ireland and the north west of england. so it could cause disruption through tuesday night and into wednesday morning. gusts can be as high as 75 mass per hour around the irish sea, north—western part of england into the north channel. with it, sunny spells and showers moving in but winds stay strong for much of the day on wednesday. these are the typical gusts expected. quite widely 45-50 typical gusts expected. quite widely 45—50 mph. so throughout the day, there could be further problems. maximum temperatures on wednesday up to around ten, 11, maybe even 12 celsius. so for the week ahead, it stays very unsettled, it is worth staying tuned to the forecast, goodbye.