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tv   BBC Business Live  BBC News  March 13, 2019 8:30am-9:01am GMT

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you're watching bbc news at 9:00am with joanna gosling. the headlines... the government says it would slash tarriffs on a range of imports from outside the eu this is business live from bbc if there was a no—deal brexit, news with sally bundock. and there'd be no new checks in westminster. and ben bland here in the studio. across the irish border. more misery for may. the british parliament rejects her brexit deal and will now this is a controversial measure that vote on whether to leave the eu without a deal. live from london, that's our top could be unpopular with some farmers and may leave the back door in story on wednesday, march 13th. northern ireland open to smuggling, but the uk government says it's the only thing it can do in its control to maintain an open border. the ayes to the right — 242. the noes to the left — 391. so the noes have it, the noes have it. unlock. in the last hour and a half, the uk says if there is no deal, after the prime minister's deal it will slash tariffs on some imports from outside was overwhelmingly rejected, the european union, but some products from inside the eu would face new tariffs. we'll be getting live reaction
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from asia on what investors make of the latest developments. and we'll hear from brussels on what it will all mean for businesses inside the eu. today, we want to know your thoughts on everything, and what you make of the latest twists and turns in the brexit process. let us know — just use the hashtag bbcbizlive. hello and welcome to business live. we are live from westminster. getting extremely busy behind me here now with another very important day ahead for the brexit process. the parliament has barely had a chance to catch its breath from yesterday's vote before it holds another one. prime minister theresa may is under growing pressure after mps rejected the deal she's negotiated with the european union
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for the second time — by 391 votes to 242. that means another vote will now be held today on whether mps want the uk government to rule out leaving the eu without a deal on march 29th. if that is passed, there is then likely to be another vote on thursday on whether the uk parliament want the government to try and delay that date. to extend the article 50 process. all this had led to more frustration in the eu, with its chief brexit negotiator, michel barnier, saying this morning, again, the house of commons says what it doesn t want. now this impasse can only what it doesn t want. and if that wasn't enough, the uk has in the last hour
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and a half published a list of tariff changes that will come into place if the uk leaves the eu without a deal. let's talk through the detail and that now. our business editor, simonjack, is with me. this came from the department of international trade this morning and they say this is important information for mps to know before they decide later on a deal or not. yes, if we were low —— if we were to leave the eu without a deal, how do we trade with the rest of the world? we are in a tent with the rest of the eu at the moment and goods can pass freely, there are no tariffs on things going back and fourth. if we leave without a deal, we are outside that tent and we have to make a decision on how we trade with the rest of the world. we can set ta riffs rest of the world. we can set tariffs to whatever we aren't but by international law, we have to have the same rules for everyone so i can't have a tariff free from the eu but not tariff free from new zealand
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oi’ but not tariff free from new zealand or the us. so what they have decided to do, either raise tariffs on stuff in the eu or cut them for the rest of the world and they have done a bit of both. so by and large, they have cut tariffs with important exceptions, mainly around agriculture. a lot of farmers feel they would be exposed to cheap lamb imports from new zealand, so sheep farmers will get the same protection they enjoy and be farmers, poultry farmers we get some protection but not as much and with —— and wheat will be protected but they have got things like wine, and have decided to go to zero. the automotive industry is concerned about the future, what have they said about ta riffs future, what have they said about tariffs on cars? the current tariff that applies to kurtz, io%, they are going to replicate that and saying because coming in from overseas will face a10% because coming in from overseas will face a 10% tariff, but not the car components, a lot of people say maybe some of the smaller suppliers in the uk might face competition
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from cheaper components. they have said when it comes to the one land border between the republic of ireland and northern ireland, what are they doing about that? they have said, we will not impose any checks, tariffs, controls of any kind. coming from the republic of ireland, which is in the eu, into northern ireland, which is part of the uk. they are not sure whether that will be reciprocated the other way but they say as far as we are concerned, we are not going to check anything. if they do vote later behind us against a no—deal, will any of this come into place? not in a short term. everybody says only in the no deal scenario we expect two votes which look like they take that eventuality way. but we could be back here in three months, if we get a three month extension, back here looking down the barrel of european elections and extending beyond that and at that point, if no one does anything, no—deal happens or by itself so there is still a possibility. thank you very much
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indeed. our business editor talking about the news earlier today from the department of international trade with regards to how tariffs will work when it comes to goods going in and out of the united kingdom if we have no deal. so that would be, in effect, from much the 29th when we read. nicole sykes is head of eu negotiations at the confederation of british industries. one of the leading business lobby groups in the uk. first of all, give us groups in the uk. first of all, give us your reaction to last night's vote, the rejection of the government's withdrawal deal. businesses really are saying now, enough is enough. there have been so many political games over the last two and half years and last night's vote really needs to represent the end of that. businesses are saying jobs and livelihoods are now on the line and you need to do three things. first, article 50 does need to be extended. quite clearly,
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no—deal needs to be avoided and businesses reluctantly would prefer an extension to article 50. secondly, they are looking to conservative mps and saying, are your red lines working? we think they need to change now and we need a fundamental shift. and the labour party, we do like a lot of your policies are brexit, but your attitude needs to change and you need to come to the table and brill —— and build a cross—party compromise. when it comes these new ta riffs compromise. when it comes these new tariffs and how business will work if there is a no—deal, what you make of what the government has announced this morning? it is a fundamental change in terms of notjust how we trade with the eu, but how we trade with the rest of the world. there are sensible parts in there, for example, making this a time—limited proposal, protecting some industries, but businesses have two weeks in which potentially this could come about. they have not been consulted on it, there are potential considerations in terms of what it means for the northern irish border, so means for the northern irish border, so it is just another reason why
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no—deal would have serious consequences. a lot of businesses that only trade with the rest of the world would not have seen this coming and they don't know what this means to them. in terms of the future with the withdrawal deal rejected for a second time last night, what do you think, what is the cbi calling for, what is the best dealfor the cbi calling for, what is the best deal for the uk as it leaves the european union? businesses have been clear for the european union? businesses have been clearfor a the european union? businesses have been clear for a pretty long time, they could have worked with the prime minister's deal, it wasn't perfect but they could have worked with it. now they are saying we have a lwa ys with it. now they are saying we have always wanted a customs union, we think that is best for making sure people avoid the backstop and also for the economy. they also want a close relationship between the uk and the eu goods and services, they need access to be balanced. they are looking at 3,000 pages of a negotiation to be written and they wa nt negotiation to be written and they want negotiators to move on so they can want negotiators to move on so they ca n start want negotiators to move on so they can start getting into a lot of technical detail, it is overdue at
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this point. thank you so much. head of eu negotiations at the cbi. soa so a lot of questions here but not a lot of answers so i will hand back to you and i will see you later. thanks very much, we look forward to hearing more from you at westminster later in the programme. there is another really big story away from brexit. it is the response to the ethiopian airlines crash on sunday which killed all 157 people on board. hong kong and india have become the latest countries to ban the boeing 737 max—8 plane from their airspace. meanwhile, norwegian air says it expects the planemaker to foot the bill for any extra costs it faces. the aircraft has been grounded in much of the world now, but not in the us, where the federal aviation authority says it won't stop the plane flying. samira hussain is at boeing headquarters in chicago. outside boeing's headquarters in downtown chicago, the company remains tight—lipped,
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but there is no doubt that this is a company that is trying to avert a full—blown crisis. now, the aviation authorities here in the united states have again reiterated their confidence in these boeing 737 max 8 planes and they see no reason to ban them from american skies. and boeing, as well, has said that they are also confident in these planes. that said, there is growing concern from a lot of people, including investors. for two consecutive days, we have seen that boeing's share price has dropped by more than 6%. now, a growing number of us lawmakers are calling on the aviation authorities here to follow suit of other countries and to ban these planes from american skies. and something that boeing will certainly be looking at is that there is now some american flyers that are hesitating about getting on some of these jets.
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breaking news, and reuters news agency is reporting that the black box will be sent overseas for analysis, according to an ethiopian airlines spokesman. he said, there is no capacity here so the black box will be sent elsewhere for analysis. the investigation team will decide where. but as we understand it, at the moment, the black box has not yet left ethiopian, that baking is just coming in to the bbc in the last few moments. let's take a look at some of the other stories making the news. the owner of the zara fashion chain has reported a rise in gross profits to about $16.7 billion last year. it saw a hugejump of 27% in online sales and says it grew in all parts of the world. it means the retailer's parent
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company, inditex, which is based in spain, has been able to increase dividend payments to shareholders. europe's largest carmaker, volkswagen, says it plans to cut up to 7,000 jobs, in a bid to raise its operating margin to 6% by 2023. the german firm believes the move will also generate around $6.7 billion worth of annual savings at its core vw brand. hong kong's flagship carrier cathay pacific has posted an annual profit of around $300 million, after two consecutive yea rs of losses. the airline says it's benefited from rising airfares and a turnaround plan designed to lower costs and boost revenue. however, cathay has warned of a challenging environment this year, amid geopolitical tensions. so let's talk about what global markets are doing and what investors and those who make decisions in terms of financial markets are thinking when it comes to this story
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of the uk attempting to leave the european union with a decent deal. it's still early in the trading day here in europe, but it's coming to an end in asia. and our asia business correspondent karishma vaswani is on a trading floor in singapore. what s the reaction been in asia? it isa it is a difference on this trading floor today in comparison to two yea rs floor today in comparison to two years ago when i was on the same trading floor and the referendum announcement came through and on that day, we had that genetic collapse, it would be fair to say, in the valley of the pound. no one was expecting the outcome that we got in that referendum. today, what we have seen is the sterling steadying because some of that uncertainty was ta ken steadying because some of that uncertainty was taken out of the equation. investors were expecting the vote to go the way it did last night, but ahead of another key vote
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today, many asian investors are feeling a little nervous. you saw that reflected in the lower close on most asian markets today. and that is because they are pricing in the fa ct is because they are pricing in the fact that the uk will not vote for a no—deal outcome. if, however, we get an upsetand no—deal outcome. if, however, we get an upset and we get the opposite of that, then it is very likely will see a sharp fall in the pound and some falls in asian markets, too. and how is all of this impact on what investors think about the uk as a place to invest in the future? well, as you can imagine, all of this uncertainty makes it very difficult for businesses to plan how they go about investing in the uk in they go about investing in the uk in the future. the big attraction in terms of investment areas for asian investors has been uk property market, but we have also seen some major companies, japanese companies
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mainly, move their headquarters out of the uk because they are trying to prepare for brexit, so it is the same old story, uncertainty isn't good for anyone and investors out here like other parts of the world are hoping that they will get some clarity before the end of the week. thanks so much. coming to a slide from a trading floor in singapore. so, how are european markets looking this morning? this is the picture across. those are the asian markets you can see. the european markets are down slightly. the leading the falls. the ftse just flat. sue noffke is uk equities fund manager at the investment firm schroders. given the big announcements we have had in the tariffs plan, the fact
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that mps are going to vote on whether they want a no—deal brexit 01’ whether they want a no—deal brexit or not at the end of march, the markets, the moves are very slight. it feels quite calm, doesn't it? i think we have had a lot of time to process and to think through the various implications. and we have also seen valuations for sterling, for uk equities fall to quite low levels in historical context. so a lot of the uncertainty we are talking about today has already been priced into the market. and what we are seeing is smaller movements in relation to day—to—day developments on the politics front. it is interesting, the pound today is up about half a percent against the dollar and the same against the euro. presumably, that tells us investors are expecting that mps will vote against the idea of a no—deal brexit at the end of march.
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what effect does that have on the markets as well? yes, well, i think it is very important to remember that the uk equity market is only about one quarter, to one third exposed to the domestic economy. so what happens with exchange rates, what happens with exchange rates, what happens with exchange rates, what happens within global economies, is very much more important for the market as a whole. and particularly so for the larger companies, as opposed to the smaller size companies. so that can have a real impact. clearly, tariffs have been a surprise picture of today ‘s announcements. but they are temporary. and it is a surprise to businesses, so i think they are still scratching their heads and working out what it means for them in terms of their supply chains, the end markets, how other countries might react. and how long these might react. and how long these might be in place, if at all. 0k,
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thanks very much for that. stay with us, still to come. we'll be live in brussels to find out what european businesses make of the latest brexit developments. and we'll lay out the day ahead here in westminster. you're with business live from bbc news. it is all about the political activity and the chaos in westminster. businesses have been chewing over the implications of last night's vote. steph mcgovern is at a firm in birmingham that makes metal components. hello from brandauer. this is a metal manufacturer in birmingham. now, they make about a billion metal components every single day
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here that you'll get in everything from your kitchen to your car. now, this business is one, like many, that has been preparing for when the uk leaves the european union. and we've got the boss here, rowan, who can tell is a bit more about what you've been doing. rowan, how have you been preparing? so, we started talking to customers immediately after the referendum result, more than two years ago, and that was a key part of it. we needed to maintain business as usual approach, talk to our customers, ensure that we both understand what our supply chain looks like, where materials are moving from and what we're doing to them and then where they're being shipped to. that planning process was vital for us to be ready for the worst—case scenario. has it been costly? yes, it has. in terms of time, bear in mind we only employ 64 people, ten of which are apprentices, it's been a huge amount of drain on resources because we have had to focus on something that perhaps we need not have done if the result hadn't gone the way it
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did at the referendum. yes. and given where we are now, how do you feel about everything? we're in an unnecessary uncertain time. manufacturing needs certainty, it needs to know what to plan for, for, and here we are — two, three weeks away from the deadline — and we still don't know where we're going. yes, so many businesses want certainty. thank you so much for your time, i really appreciate that. that's it from me at brandauer. you can see reaction to the tariffs plan that was announced by the uk government early this morning. the british chambers of commerce says this new tariff regime, if it comes into effect, would be, an unwelcome shock for many firms. the british chambers of commerce director—general saying that the abruptness director—general saying that the abru ptness of changes director—general saying that the abruptness of changes would create winners and losers across uk industry overnight. that is the regime of tariffs that we heard sally talking about in westminster a little earlier. you can read more
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on that. you're watching business live, our top story: tariffs on a range of goods from outside the european union will be cut if britain leaves the eu without a deal. those plans have been published after the british parliament again rejected thersea may's deal for leaving the eu. so, what's the reaction in the rest of europe been to yesterday's vote? arnaldo abruzzini, chief executive of eurochambres, the association of european chambers of commerce and industry. he joins us from brussels. what are people saying to you there? we are coming down from the storytelling of politics to the reality of the economy. and the reality of the economy. and the reality is about cost, compliance cost, administrative cost, tariffs, and this is what we need to talk
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about right now. and this plan that has been unveiled by the uk government and the changes to tariffs, if there is a no—deal scenario, how do you think that is going to go down in the eu? well, the real problem is that tariffs represent just one set the real problem is that tariffs representjust one set of the real problem is that tariffs represent just one set of costs that might vary from zero to an average of 5% on eu and uk trade, but there are other costs that can't be manipulated by politics, which are compliance costs, customs cost, time, and that would represent real cost for businesses in trading with uk. so that is the only thing which is clear, that making trade between the eu and the uk will have increasing cost. how those costs will be absorbed and distributed, thatis will be absorbed and distributed, that is a question that every
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business has to ask itself. the british prime minister, theresa may, yesterday told lawmakers in the house of commons that there are now on enviable choices that have to be made. given the choice between if it came to it and no deal brexit and prolonged uncertainty by delaying brexit, what you think european businesses would say is more preferable. look, from the european perspective, the heart of the brexit, the higher the cost. so the choice is inevitable for a manageable brexit that will decrease the compliance costs of this entire procedure. and i repeat, storytelling of politics and promise whatever they want, but at the very end, the reality of economy is about choices and opportunities. and what is clear is brexit will make costly and harder to make a trade and
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business with the uk. if this is what you want, hard brexit is the way through. if you want to ease the way through. if you want to ease the way to business, therefore, the softer the better. 0k, arnaldo abruzzini, joining us from brussels, thank you. well, let's now talk some more about the day ahead here in westminster. extremely important. i'm joined by our political correspondent, alex forsyth. so, alex, took us through this vote later. another big brexit vote today and this time, mps will be asked for their thoughts on whether the uk should leave the eu at the end of march and what is currently brexit day, the 29, without a deal. the chances are most mps won't go for that option because we have seen before the majority in parliament is against that idea. what happens then? well, it doesn't automatically mean no—deal is off the table, they would need to be some sort of legislation around that. in the
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short term, they will come back tomorrow and vote again on the possibility of delaying this process. and if that were to go forward , process. and if that were to go forward, the delay, as it were, we would have to get agreement in brussels on that from the other 27 member states as well. but regardless, if we look to the end of june, it is still no clearer what this deal what will look like, how we will exit the european union. absolutely right, it is not in the gift of the uk parliament to decide to delay, they would request an extension to article 50, the formal legal process, from the eu, the length of that and any conditions are not known at this point. and crucially, what with the delay before? at the moment, parliament can't decide. thank you so much, alex forsyth, our political correspondent. so it would seem we have a lot of questions as ever, not too many answers. that's it from business live today. from me in westminster. and in the
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studio, thank you for watching. good morning. ston gareth gave us some very strong good morning. ston gareth gave us some very strong winds through tonight and the first part of this morning. up to 72 mph in parts of northern ireland and through western scotland. it will stay very windy for many today with a mixture of sunny spells and showers. here is the sense of stormed gareth. moving its way gradually eastward. moving its way gradually eastward. moving its way gradually eastward. moving its way into the north sea. but around that area of low pressure, wind is coming from the north west. you notice the isobars. the white lines closely packed together. all is seeing some strong gusts. these are typical through this morning. 1a "40, are typical through this morning. 14 -- 40, 50
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are typical through this morning. 14 —— 40, 50 five miles per hour, but using across northern and western areas this morning. we also have quite a few showers in scotland, northern ireland, north west england, showers gradually working further south and east with sunny spells in between. wednesday strong, particularly around the liverpool bay area towards the wash, gusts up to 60, 65 bay area towards the wash, gusts up to 60,65 mph. bay area towards the wash, gusts up to 60, 65 mph. this evening, bay area towards the wash, gusts up to 60,65 mph. this evening, rain spreads into northern ireland and scotland, through northern england and across wales. winds will ease through the first part of tonight, but gradually through thursday, they start to pick up. these are the overnight temperatures, six or seven celsius. but during thursday, strong winds once again. this weather system is moving south—eastward but the wind is coming in from the north west and it will be a blustery day throughout their stay. it will dry, the showers quickly towards the south east, so sunshine developing across scotland, northern ireland, wales, through the midlands and northern england throughout the
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afternoon. and temperatures on thursday nine, 13 celsius. the last of the rain clears later in the day but still quite blustery conditions. goodbye.
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