tv Business Briefing BBC News March 19, 2019 5:30am-5:46am GMT
this is the business briefing. i'm ben bland. the speaker of the house of commons has blocked a possible vote on the prime minister's brexit deal. what does this mean for businesses already plagued by uncertainty? big apple, big congestion. how new york city is trying to tackle its traffic problem. and on the markets, asian markets were mixed. investors are waiting for the federal reserve‘s latest policy decision later this week. the pound is fighting back against the dollar after taking a hit from the latest twist in britain's brexit saga.
the brexit uncertainty is piling up — as you've heard, the speaker of the house of commons has blocked a possible vote on the prime minister's brexit deal. he said a convention dating back four centuries meant that a bill that had already been rejected by parliament could not be resubmitted unless it was substantially changed. so what does this mean for businesses? they remain in limbo, warning that uncertainty has harmed jobs and the economy. the latest brexit tracker report by ey estimates that london is most vulnerable — on track to lose about 7,000 jobs to the eu "in the nearfuture". it's not just lost jobs, but new roles that the uk misses out on. the consultancy says about 2,000 roles are being created on the continent and ireland in response to brexit.
financial services are vulnerable, it's reported hundreds of uk bankers are poised to relocate to eu offices by 29 march, regardless of parliament's vote to delay brexit. financial firms were shifting nearly $1,191; trillion in assets and funds from britain to the eu as part of brexit plans, according to thinktank new financial. dublin, frankfurt, luxembourg, paris are the winners. jp morgan, which employs 16,000 people in the uk, recently opened a new office in dublin with the capacity to double its existing irish workforce. let's go back now and listen to that moment when the speaker dropped his bombshell. is the government wishes to bring forward a new proposition that is neither the same nor substantially
the same as that disposed of by the house on march 12, this would be entirely in order. what the government could not legitimately do is to resubmit to the house the same proposition or substantially the same proposition as that of last week which was rejected by 149 votes. i set a moment ago 1190 or trillion dollars in assets. that should have been 1.2 trillion. let's not run away with that figure. mark essex, director of public policy at kpmg joins me now. despite shocking everyone there for a second... for business, this uncertainty has a practical effect can you give us uncertainty has a practical effect can you give us an uncertainty has a practical effect can you give us an example of how?
it is like the weather. they have given up trying to predict the forecast in politics and they now wonder how to batten down the hatches and be ready for whatever comes next. so if you are a bank, that means putting some preference overin that means putting some preference over in the eu so you can access the market and if you have a manufacturing business that means having flexibility to cope with disruption. just sensible precautions. thing is that we keep hearing about how business says they do not want the uk to leave without a withdrawal deal. they want that certainty about their workforce being able to continue to work and that goods can keep coming in and out of the uk. however, if there is a delay which is looking more and more likely, if that delay happens, doesn't that just prolong more likely, if that delay happens, doesn't thatjust prolong the uncertainty and keep them in limbo? which is worse? a no deal brexit or prolonged uncertainty? it depends
what the delay is about. if it is a short delay to do the administration ona short delay to do the administration on a deal that has been politically agreed that means that working capital that people have invested in extra stock has to stretch another three months. for most businesses thatis three months. for most businesses that is not insurmountable. if it is a delay with no particular end in sight or the worst thing would be a rolling set a three—month leis, that is the worst because you need to maintain that readiness for longer. that said, when we talk about hiring decisions and investment decisions not being made, won't they be made eventually? just bounce or further down the line? 0nce eventually? just bounce or further down the line? once we have the deal understood and everybody thinks that sooner or understood and everybody thinks that sooner or later understood and everybody thinks that sooner or later we understood and everybody thinks that sooner or later we will have to create a relationship with europe that works on the medium term, then i think there are ready to go. business i was speaking to last week was actually worried about what they would do with everybody press the button at once. is enough infantry
and raw material to supply construction of everybody starts to build on the same day of the week western mark given where we are in the process in the latest intervention from the speaker of the house saying the bill can come back preferred vote, if business leaders we re preferred vote, if business leaders were in charge of the process, what do you think they would be doing next? it is difficult. it is not really a business decision. the withdrawal agreement, want business wa nts withdrawal agreement, want business wants is the transition that gives. but many of the issues that create the difficulty in the commons are not really business issues. they are about citizens rights in northern ireland, the bill that the government will have to pay, not his best. said business leaders would probably face exactly the same difficulty in trying to find an agreement. a different constituency thatis agreement. a different constituency that is being addressed. but, of course, in an ideal world they would have more notice. they would try not to create shocks at the last minute and start to think a bit further
ahead. thank you very much. the chief executive of plane maker boeing has just released a new statement. in it, he says the company is working with air crash investigators — and it plans to release software update for the 737 max model soon. this is after officials who have been examining the black box from the ethiopian airlines disaster have found, quote: "clear similarities" with a lion air crash five months ago. as the facts from the accident become available and we understand the necessary next steps, we are taking action to fully reassure the airlines and their passengers of the safety of the 737 max. we regret the ongoing challenges the grounding has caused for our customers and the flying public. the investigation is moving forward, with work under way to understand the information from the airplane's cockpit voice and flight data recorders. our team is on—site with investigators to
share technical expertise. anyone living in a big city knows just how bad congestion can get. from mumbai to new york city, trafficjams are a part of every day life. now, lawmakers in the big apple are trying to ease congestion by charging people to use their cars. but samira hussain reports, it's not without controversy. traffic in the big apple. new yorkers have been battling gridlock for decades. it is definitely not new but without a doubt it is getting worse. navigating new york is becoming unbearable. 0ur regional population has grown, from 19 million, expected to reach 21 million in 2020. the failing train system has driven more commuters to cars, which has in turn generated more traffic. lawmakers are finally addressing the issue.
they want to implement congestion pricing, so that means charging cars and trucks a fee for driving into the city. the money it makes will go directly into improving new york's ageing subway lines. new york is late to the game. copenhagen is the latest city to implement congestion pricing. when london did it, back in 2003, there was a dramatic drop in the number of cars entering the city centre. but taxis were exempt and, with the meteoric popularity of ride—sharing companies, like uber, traffic in london has now skyrocketed, leading the mayor to drop the exemption. car horns blasting. new york has already levied congestion fee on taxis and for—hire cars but cab drivers are challenging it in court, saying the increased cost will hurt their business. the new york subway system is in desperate need of upgrades and congestion pricing could be a way to fund it, but new york, like other
cities in the world, it costs more to live in the centre so it is lower income people that will shoulder the burden of the congestion fee. it would be very regressive if in fact it did not include a comprehensive pointer to address congestion and transportation outside of manhattan because it is the outer borough people that go into manhattan that would be really paying the price. whether new york implements congestion pricing will be decided by the end of march, but the soonest the city will actually see some money from it will be january of 2021. samira hussain, bbc news, new york. that is it for the business briefing bissau were. a quick look at the markets were the focus is on the us central bank's decision on interest rates.
a huge bronze sculpture, believed to be the largest in the uk, has arrived outside the theatre royal in plymouth. the 10—tonne sculpture of an actor rehearsing at the theatre is called "messenger" and was designed by the artistjoseph hillier. john maguire has more. surfing into plymouth on the morning tired, map one mack struck an incongruous and imposing figure. seven metres tall and one needed wide, messenger will seven metres tall and one needed wide, messengerwill take seven metres tall and one needed wide, messenger will take up residency outside the theatre royal in them as. she's the uk's largest roms sculpture. she represents a young actor, the dynamism the energy, the message that an actor
gets a cross energy, the message that an actor gets across when they are on stage. the statue was created using both ancient and modern techniques. she's assembled from cast bronze segments formed using robots and computer—aided design. the stance is based on an actor rehearsing for the shakespearean play a fellow. when you think about statues and victorian statues, they are rock men standing. but she is quite dynamic. i was keen to capture that. once messenger was safely delivered by sid she then took to the air and was lifted onto dry land, ready to take place outside the theatre royal and that this in of plymouth‘s cultural ambitions. she is beautiful. she will make an impact on the city and hopefully people will come for many yea rs hopefully people will come for many years to see her because she is rather special. originally based on the character bianco, the subject matter has led to some bemusement in the city. but as she takes up a
permanent place outside the theatre it is hoped she would become a magnet for visitors. a message that will be heard far and wide. coming up at six o'clock on breakfast, dan walker and louise minchin will have all the day's news, business and sport. is this is the briefing from bbc news. the latest headlines: warnings of a constitutional crisis, just ten days before brexit, after theresa may is told she can't have a third vote on her deal. as new zealand continues to mourn, the country's prime minister, jacinda ardern, has condemned the gunman who killed 50 people as a terrorist, criminal and extremist. there are growing fears for more than 100,000 people in mozambique after a cyclone that caused widespread flooding. now it is time to look
at the stories that are making the headlines in the media across the world. we begin with the latest on brexit, and the independent, which leads with a pictures of the speaker, john bercow, and a claim that he has delivered a hammer blow to theresa may's withdrawal deal. meanwhile, the financial pages of gulf news report on the disagreement over a proposed merger between two of germany largest banks, and the possible loss of 30,000 jobs. staying with the business pages, and the guardian, which highlights new figures showing how online platforms are fuelling record—breaking sales of fake and counterfeit goods. meanwhile, the mail 0nline leads on a water shortage warning. surprisingly, the subject is the united kingdom, where there are frequently complaints that it is always raining.
and to the telegraph, which coos over an unusual sporting hero. it features a £1 million sporting livestock auction. but the subject isn't a horse or a greyhound. instead, it is a very fast pigeon called armando. the name is important. so let's begin with brexit, and what some of the british papers are calling a constitutional crisis. with me is nina trentmann from the wall streetjournal. we will get the take from the foreign papers in a moment, looking at german papers, but in terms of this latest development, what do you make of it? well, it is an interesting turn, to say the least. i wasn't aware of this legal clause that restrains john i wasn't aware of this legal clause that restrainsjohn bercow i wasn't aware of this legal clause that restrains john bercow from allowing a third vote in this case. i think it is also interesting that i think it is also interesting that ithink in i think it is also interesting that i think in the past couple of months we have seen