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tv   BBC Business Live  BBC News  March 14, 2019 8:30am-9:01am GMT

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you're watching bbc news at nine with me, annita mcveigh. the headlines: more brexit votes. hello. mps return to the commons to decide this is business live whether the uk should from bbc news — request an extension to the brexit process as the government confirms it with me, sally bundock, will put the prime minister's deal at westminster to a vote for the third time. the prime minister's deal remains and victoria fritz in the studio. there and i sincerely hope that, no backing for no—deal. thinking very hard about what the british parliament happened yesterday and what may votes against leaving happen in the days ahead, a the eu, without agreement on its future relations. significant number of my colleagues who voted against it may yet change as you can tell, this is a live their minds. show! live from london, that's our top labour and senior tory mps call for story on thursday, 14th march. a new cross—party compromise to break the brexit deadlock. 17 former soldiers will find out today if they are to face charges the pound shot up on the news that for their part in the bloody that a no—deal brexit was less likely, but there will be another vote here at parliament today on whether the uk should try
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and delay this month's leaving date. boeing grounds the global fleet of 737 max aircraft, after investigators find new evidence at the scene of sunday's fatal crash, with the black boxes being sent to france for analysis. also, we want to know your thoughts on brexit and what you make of the latest twists and turns in the debate. just use the hashtag bbcbizlive. a very warm welcome to the programme, once again, it is live from westminster and delhi studios because we have another very important day ahead here in the house of commons, another brexit vote. yes, there are quite a few this week! the british parliament has rejected the idea of leaving the european union without a deal
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and will hold a vote today on trying to delay its departure. off the back of last night's vote, the pound sterling spiked, its biggest daily gains in two years, but has since fallen back slightly. now, there were a series of votes yesterday. one of them saw mps voting by 312 to 308 to reject a no—deal brexit under any circumstances, but that was a non—binding vote. by by any means. with that in mind, parliament here in london will vote today on whether to ask the eu for permission to delay the date for departure. now, if the two sides don't reach agreement on a delay, the uk will leave the eu on the 29th of march — that's two weeks tomorrow. the uk's chancellor of the exchequer, philip hammond, has been explaining why he thinks parliament has to vote for some kind of exit deal.
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if you reject no—deal, how are you going to deliver that? because there are only two ways to avoid no—deal. one is to vote for a deal. and the other is to withdraw the article 50 letter and have no brexit. there is clearly no appetite in the house of commons to do that, to withdraw the article 50 letter. so the house of commons has to support a deal. so that is the view of the chancellor, or the finance minister, if you prefer. our economics correspondent, andrew walker, is here with me. the chancellor saying we have to agree a deal now, and it is interesting, the queue —— the view from goldman sachs among others as it might be theresa may's withdrawal deal. goldman sachs put out a know saying 60% probability theresa may's
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will indeed ultimately be ratified. you might find that somewhat surprising as that deal was comprehensively rejected the day before yesterday by a margin of 150 votes. but i think as exit day gets closer, i think what goldman sachs are thinking, there are two groups of mps who will feel there is something of a gun to their head. there are others who would prefer to remain, but they would accept moving as long as there is a deal. people who essentially fear macro option. and then there are a committed brexiteers who fear the prospect of losing britain's departure from the eu altogether and it is conceivable significant numbers will peel off. as the day gets closer. and goldman sachs have taken the view, as have others, there will be just about enough to get the deal over the line in the house of commons. and that is exactly what theresa may, the prime minister, was saying, after another
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rejection in two days for the government came through late last night. and we are going to have meaningful vote three and some people think there may even be meaningful vote four even closer to the wire, but the likes of goldman sachs think things are moving in that direction. in the meantime, brussels is watching, strasbourg is watching, they are weighing up what this means going forward and many of them are sane, even if you vote for an extension of article 50 today, the mechanism by which we leave the european union, we are not necessarily going to say ok to that u nless we necessarily going to say ok to that unless we know what you are considering in terms of a deal. yes, and it is worth remembering it requires unanimous agreement among the other 27 and they want to know that there is the prospect of doing something useful with any extension. the kind of things they had indicated they might be reasonably well disposed towards are a little extra time to get the necessary legislation over the line in the british parliament for the deal that
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has already been negotiated to come into proper legal effect. in the uk. they might also be prepared for the possibility of an even longer extension if we talked about the possibility of another referendum or perhaps a general election. but certainly, i don't think we can automatically assume they will just roll over and agree to whatever extension the prime minister might ask for. no, we deftly don't assume that, that is for sure! —— we definitely. thank you very much. so still all to play for, as you can tell, and i would imagine all mps today, no matter what party they are in orwho today, no matter what party they are in or who they represent, will be in deep discussions and politicking today as they gear up for the vote later here. and to add another element of uncertainty, we have the parliamentary elections in europe. that is in may and that is one of theissues that is in may and that is one of the issues leaders in europe are really concerned about. if there is this extended committee of the
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period in which the uk negotiates its departure from europe does go beyond march 29th, what impact does that have on their own elections? some feel the toxic nature of politics here might spill over into strasbourg. i am politics here might spill over into strasbourg. iam nowjoined by... stephen phipson is chief executive of the manufacturers organisation makeuk. thank you forjoining us once again. what is your take on all of this? manufacturers in the uk have got so much to deal with and this is not helping them, they still have no clue what is going on on march 29th. no, there are many uncertainties and you have seen the effect on that in terms of investment stopping and people publicly talking about a plan bin people publicly talking about a plan b in the event of a no—deal so the uncertainty is putting an incredible pressure on the manufacturing sector in this country. there was a glimmer of hope yesterday when we saw parliament coming together to say no—deal should definitely be off the table because that is what we have been calling for four months. we are
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back into parliament saying what they don't want to commit what we need to know now is what parliament does once we can proceed with an orderly exit from the eu. your reaction to the news we had this time yesterday, these trade tariffs and arrangements that would come into place on march 29th if we do leave without a deal. i mean, that really gives manufacturers no time to prepare for that, even. here we are, 60 days to go, and not only are we dealing with many other aspects of our terms of trade, particularly with europe, our largest trading partner, but we are now looking at how we would institute a day one tariff schedule which completely changes from where we are at the moment. normally in these situations, businesses are consulted well in advance. in this case, of course, they were not. it presents lots of issues, people are working through what that means in their supply chains and we are in a position of low tariffs coming in but tariffs being maintained when we export to other countries, so people are trying to work out what that
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means. despite all of this, the uk economy is proving to be extremely resilient and doing well. the latest growth numbers, they are not fantastic, but many would argue they are better for fantastic, but many would argue they are betterfor germany fantastic, but many would argue they are better for germany in the last quarter. give us your take on how manufacturers are handling all of this. at the moment, if we look back at the last five periods of activity for the manufacturing sector in this country, we are seeing it pretty flat, not spectacular. export orders are coming off and domestic demands are coming off and domestic demands are staying pretty level, but the point is half our export demand is building inventory in preparation for no—deal brexit so a lot of working capital is absorbed by these companies in doing that and while they are doing that, they are not investing in the future and that is the big issue for them. that is a big issue. thank you very much for your time. victoria, big issue. thank you very much for yourtime. victoria, back big issue. thank you very much for your time. victoria, back to you. thanks very much. let's turn to the other big story now — the growing sense of crisis surrounding us planemaker boeing. ethiopian airlines says the cockpit voice and data recorders
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from the boeing 737 max that crashed on sunday are being taken to paris for analysis, as they try to establish the cause of the accident. it comes as boeing has now grounded the entire global fleet of this aircraft, 371 planes. the us regulator says the decision is because of new evidence uncovered at the scene of the crash in ethiopia. samira hussain has more from the headquarters in chicago. this is really a big dealfor boeing. this is not something that a plane maker wants to hear — that its most importantjet is now no longer allowed to fly. so there's really a lot of pressure on boeing to find a fix for this plane and to do it fast. there are almost 5,000 outstanding orders for these planes. already, there are some airlines that are talking about seeking some compensation from boeing. they are in the process of upgrading their software and this is something that they were working on after the lion air crash, and there are reports about massive
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amounts of delays with regards to that update, so this crisis is quickly becoming a very costly one. if you look at the market value of boeing, it has really taken a hit this week on trading. so, boeing needs to do something and it needs to do it quite quickly. there is, of course, the cost factor, but there is also the reputational factor as well. from chicago, outside the headquarters, that is samira. and breaking news from reuters news agency. copy here saying that japan has now banned all flights of the boeing 737 max 8 aircraft from its airspace, of today, so that he is coming in today that japan has banned flights of all of this particular aircraft, the boeing 737 max. and indonesia's chief executive
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saying there is a possibility the airline will cancel all of its orders of this plane, with the final decision very much depending on what the us federal aviation administration does. this is after they said they had reduced the order a nyway they said they had reduced the order anyway before the crashes. the 737 max is now banned from flying in most countries across the world. let's take a look at some of the other stories making the news. and facebook appears to be recovering from a more than ten—hour global disruption to all of its products. the outage affected the main paltform, as well as messaging services including whatsapp and instagram. the company is yet to explain what the cause of the downtime may have been, which is being seen as the most severe in the company s history. one of the world's biggest port operators, dp world, said its profits rose 10.2% last year, despite the growing global trade tensions. the company — which is controlled
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by dubai's government — said it made over $1.3 billion as the number of shipping containers it was moving grew by 2%. the chairman said he expected the company "to remain resilient," despite the us—china trade war. let's discuss how the financial markets had been digestive in the news coming out of the building behind me, the house of commons. when that vote was taking place, the asian markets were limbering up for their brand—new trading day. we saw big reaction in the pound sterling. and our asia business correspondent, karishma vaswani, is on a trading floor in singapore. i know other news like the economic data out of china and the us is of more importance to traders where you are, buti more importance to traders where you are, but i can't take their eyes off london at the moment, can they? know, sally, and i think that is what the sense of bewilderment as much as there is curiosity about
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what will happen next in the brexit negotiations. there was a bit of relief, i think it would be fair to say, that the vote last night went the weight many traders and asian investors had expected it to go because the market here was pricing in that mps would vote on not having no—deal brexit and that is where you saw the initial bump up in the value of sterling even in early asian trade. but as investors here woke up and started to die just exactly what this means, that it is not legally binding and that a no—deal option is still very much on the table —— to diejust. there are still very much on the table —— to die just. there are a still very much on the table —— to diejust. there are a number of votes for m ps diejust. there are a number of votes for mps to go through with two weeks until that programme, you saw that initial optimism fade away and a reality check kicked in. notwithstanding that, we did see asian markets also bumping up earlier in the day with that optimism and that started to pair
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away through the day as we started to get that chinese economic data which has a far bigger impact on the sentiment of investments. thank you very much. so, how are european markets looking this morning? down just a fraction but holding steady, ftse. economic news coming the swiss economy will grow less quickly than previously anticipated, hamstrung by the global downturn — economists there citing a much gloomier outlook for europe, particularly germany. elsewhere, turkey s industrial output shrank for the fifth month in a row injanuary, clear evidence of the continued weakness after the country fell into a technical recession during the last three months of last year. the ongoing brexit drama, a cut to the uk's growth forecast and a warning from america's top trade negotiator that tariffs may
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not be rolled back are adding to a gloomy picture sophie kilvert, a senior investment manager at seven investment management is here in the studio in london with me. it isa it is a little lonely in the studio without sally so thank you! let's talk about the pound. sterling. it seems like it is coming off the highs it reached yesterday. but without all of this, the last two yea rs, without all of this, the last two years, it seems they have been confident the result would be a soft form of brexit. is that confidence is misplaced? form of brexit. is that confidence is misplaced ? it form of brexit. is that confidence is misplaced? it is an interesting one, maybe they know something we don't! but that certainly seems to be the current market suggestion. and that has always been a case, sterling has always been a barometer on the brexit negotiations, if it looks like it will be soft, sterling rises. if it looks like it will be harder or no—deal, still involves. as we have seen harder or no—deal, still involves. as we have seen over harder or no—deal, still involves. as we have seen over the last few months, sterling has gradually been rising off some of the highs we saw
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overnight, as people have gone, what is next? that is great, no deal is off the table but what is next? the reality is we are two weeks away and nobody still knows what is happening. we do know next is a vote today on the potential extension of article 50. the finance minister philip hammond speaking today to the bbc saying if that was requested, the eu might decide on a longer style extension to article 50. what would that do in terms of changing the investment outlook for the uk? well, it is interesting, what we have said throughout is that businesses need certainty to invest and what they are lacking at the moment is that certainty, which means there has been a real pull—back in the amount of investment going on. a series of short extensions won't help them. we have been in that situation before. may be a long extension, which would give a bit more clarity or give us a chance to get more clarity, it would help. but the reality is, wejust need to know what is going to
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happen, businesses need to know what the trading environment is going to look like for them in two weeks and at the moment, they don't. so any idea that would help them, but investment in business both internally, domestically and internationally, is pretty low at the moment. thanks very much, sophie. still to come, we'll go through what to expect here at westminster later today. and we'll be live in brussels to hear what european businesses make of the latest brexit developments. you're with business live from bbc news. let's talk some more about how uk businesses have been reacting to the drama unfolding in the house of commons this week. let's begin our
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third partner in crime! ben thompson has been following the fallout. incandescent with rage. a lot of these business groups. what's really changed ? yes, that isjust me! you will be forgiven for being utterly confused by what has gone on over the last 24 hours and beyond. and businesses making their voices heard clearly today, talking about how the uncertainty will continue. we heard from the chief executive yesterday of centrica, he said this is very embarrassing. he talks about relations being soured between the european union and the uk and said it could take even longer to set negotiations between the uk and brussels. the director of the confederation of british industry, caroline fairbairn, talked about a delay but the short as possible to delay but the short as possible to delay because business needs to get on and do this. the chief executive of london first, the lobby group that works would lend to businesses, says it could take years to
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re—establish good relations with brussels. so frustration, uncertainty, all of that ongoing and still no clearer, not any nearer to announce karsh —— to an announcement and businesses need to get on. the chancellor... lost in the noise yesterday, the chancellor, phillip hammond, delivered his spring statement. how did that go down? there were no huge headlines, the cancer wanted to give us a statement about where the uk was heading, for to grow by1.2%, about where the uk was heading, for to grow by 1.2%, that was down from 1.6% for —— just in autumn with the la st 1.6% for —— just in autumn with the last set of figures. there was good news on borrowing, coming in at {22.8 billion. it sounds like a lot, £3 billion £22.8 billion. it sounds like a lot, £3 billion less than first thought because tax revenues have been rising. and that money they have to borrow is the difference between what they make in tax revenues from all of us versus the amount of money they need to spend on all sorts of
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public spending commitments. so some good news there, but inevitably, he talked about what was described as a cloud of uncertainty hanging over the economy and given everything we have heard about brexit, that cloud isn't going anywhere any time soon. your're watching business live — our top story: the british parliament will vote today on whether they want a delay in the uk's departure from the european union, after rejecting the idea of leaving without a deal. so, what's the reaction in the rest of europe been to yesterday's vote? veronique willems, secretary general for smeunited, joins us from brussels. smeunited is an association of small
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and medium—sized businesses across europe and you are speaking on behalf of a number of businesses, what are they saying to you on your side of this. good morning, victoria, indeed, smeunited speaks on behalf of the 24 million small and medium businesses in europe and it is parallel to what has been discussed this morning, uncertainty has reigned on their business expectations, confidence is going down, they are postponing or delaying investment. it also has an impact on the supply chain, so i think the image is similar to the one in the uk here. new line we are used to quite a settled, more straightforward position from brussels. but the language does appear to be hardening. does that represent what the people across europe are feeling, that they have had enough of this and they want the uk to get on with it, regardless of the outcome? i think that after the vote yesterday, our smes are still
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more in favour of a bit longer uncertainty and having time to prepare for the new situation, rather than having a hard brexit, so in that view, smes wants to avoid a ha rd in that view, smes wants to avoid a hard brexit at all costs because due to the fact that they don't have the number of resources that may be bigger companies could invest in preparing, they really continue their activity as it is at the moment and they will need to prepare when it is clear where it will be going. yes, they certainly will. veronique willems, from brussels, thank you very much. welcome back to westminster, the house of commons behind me. as you can see, it is blowing a gale, the rain has stopped, though, which is very welcome for all of us. our political correspondent alex forsyth is with us, talk is to be the day. today, mps will talk about the possibility of extending this whole process. what the prime minister is suggesting, if there is a deal in sight, parliament could get behind, there might be in extension of a few
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months before we leave the eu to enable the governor to get the legislation in place. but she is also signalling if there is no—deal in sight, that extension could possibly be much longer. it is up to the eu to discuss the terms of any lengthening or delay, but i think the strategy of the prime minister is to threaten the possibility brexit can be delayed, in the hope of winning some of those mps round, to bring her brexit deal back and somehow get it to parliament. but don't underestimate how angry and frustrated many mps here are and how difficult that is going to be. for that very reason, the prime minister is hoping she will get her withdrawal deal through that has been rejected in that building twice. yes, quite, rejected resoundingly in that building twice, a lot of people don't like it, but now we can expect that deal to return to parliament sometime in the next week. there are conversations ongoing between brexiteer mps, the dup and the government about how they make that deal acceptable, but they make that deal acceptable, but the scale of the still pretty
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significant. and in terms of where we go up to march 29th, next week, there is another ministers meeting in brussels, that theresa may will have to go to? yes, she will have to discuss what is happening here there, whether that is the possibility of extending the process , possibility of extending the process, trying to get changes to her deal which the eu has already ruled out. so by the end of today, what we will know at least is where parliament sits, what mps think about the possibility of a delay, thenit about the possibility of a delay, then it will switch to the eu conversations to see what they will think about it, are we are going to leave under march 29th? that is anybody‘s guess. thank you so much, alex forsyth, our political correspondent, he has another busy day ahead of her. and thank you for your company. that's it from business live today. from westminster and our london studios. there will be more business news throughout the day on the bbc live webpage and on world business report. but for today, certainly from us, goodbye. we'll see you again tomorrow.
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goodbye. good morning. storm gareth may have passed, but we have got more wet and windy weather over the next few days. look at the satellite imagery across the uk, lots of cloud at the moment, and even if we go out a bit further across the atlantic, this ribbon of cloud stretching down towards the caribbean, that is all moving its way in over the next few days, bringing a succession of weather fronts and bad weather. through today, very windy again, heavy rain this morning, that is claiming its way southwards. but strong gusts of wind through the morning. for england and east wales, potentially up to 60, 65 mph at at times, quite widely up to 35 to 50 mph. that heavy rain spreads to the south and it may well linger across south and it may well linger across south wales and the south—west of
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england during this afternoon. quite cloudy northern ireland. elsewhere, sunny spells and just a few showers developing. maximum temperatures up to 8-30d. developing. maximum temperatures up to 8—30d. the wind is gradually easing later this afternoon. but as we go through tonight, more wet weather spreads in from the west. that is going to move erratically eastwards. the wind will start to pick up, hill snow across scotland. these are the overnight temperatures, very relevant really, that cloud, wind and rain. rather unpleasant start friday morning, almost like a repeat performance with heavy rain in the morning, strong winds, that clears away to the east and the south and it may stay cloudy again because southern areas into the afternoon. otherwise, though, sunny spells and showers and a blustery wind to come. maximum temperatures, 8—30d. and then into the weekend, well, more bad weather on the way. potentially quite stormy, a chilly, during saturday. snow for some, particularly over the
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higher ground of north wales, northern england and scotland. this area of low pressure is just developing towards the south—west. that is throwing weather fronts in during saturday, isobars getting closer together. very blustery conditions. but heavy rain spreading to the north and east and as it moves into the cold air, we start to see some snow falling. there could be significant snowfall over scottish mountains, maybe even to lower levels. heavy rain continuing across central and southern areas into the afternoon, maximum temperatures on saturday about eight to 13 celsius. overall over the next few days, it stays very, very u nsettled.
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