tv BBC Business Live BBC News April 11, 2019 8:30am-9:01am BST
this is business live from bbc news with victoria fritz and maryam moshiri. a hallowe'en brexit — the eu gives the uk a new deadline of october the 31st. live from london, that's our top story you're watching bbc news at nine on thursday the 11th of april. with me, annita mcveigh. the headlines: brexit delayed again, after the eu grants the uk another extension until the end of october after late—night talks in brussels. this extension is as flexible as i expected and a little bit shorter than i expected. firms say they're relieved a no deal but it is still enough to brexit has been averted find the best possible solution. for now but one business group says please do not waste this time. frustration with the political process is palpable. theresa may, who was aiming also in the programme for a shorter delay, voting begins in india's elections — says the uk must leave the eu we'll be live in mumbai — finding out what it all means as soon as possible. for the world's fastest growing major economy. and on the financial markets —
we have a duty as politicians to not so much as a raised eyebrow find a way to fulfil the democratic at the six month's grace period extended by the eu to the uk. decision of the referendum, deliver brexit, and move our country and taking a 19th forward. century fashion label into the 21st century — we'll find out how one iconic brand has managed to remain relevant — generation after generation. as avengers fans queued for hours in singapore for the latest marvel offering — today we want to know... let us know — what is a film you would queue for? past or present. just use the hashtag bbcbizlive hello and welcome to business live. the uk and the eu have agreed a "flexible extension" of brexit until 31st october. the european council president donald tusk had a stark message for britain..."please do not waste this time." it's a message echoed by business in the uk — where uncertainty has been
taking its toll — remember the original date for brexit was march 29th. the british retail consortium says all the uncertainty is holding back consumer spending. it's also raised costs for businesses. many manufacturers here in the uk have stockpiled goods — and that's been based on a timeline of leaving in march, april or may. the british chambers of commerce forecasts business investment will fall 1% this year — if correct it would be the weakest since the global economic crisis a decade ago. business correspondent andy verity is on a trading floor in the city of london. the city isn't infallible. it called the result of the brexit refendum wrong. is it right to shrug its shoulders at the prospect of another six months of brexit? i think it's shredding it shoulders,
there is also a degree of relief but also, the most honest people here on the trading floor have said they are bored stiff of the entire process. there's been an extension and to some extent it hasn't been as bad as people thought but even when we talk about a relief rally, there's been a modest relief rally when you look at what's happened to the ftse 250, the best barometer of the uk economy. it's been modest. if they'd been worried about a new deal brexit there would have been more of a bounce. we are talking about sterling trading on the mark between 130.5 and 131. it's been a lot worse, frankly, in the last couple of years. what we hear from traders here, they are looking at other things now. they've got other scenarios, big news going to play out over the coming months, for example, possibly a leadership contest, possibly the european elections, possibly a general elections, possibly a general election and that's what they are looking to now. the concern, of course, the prolonged uncertainty
will still mean companies do not wa nt to will still mean companies do not want to invest and that takes its toll on economic growth. with us is stephen phipson, chief executive of manufacturers‘ group make uk. your reaction to that extension. a great deal of relief we are not a new deal territory tomorrow, we have been pushing very hard with the government to avoid that, for the manufacturing sector is by far the worst scenario. we are in uncertain times, as you said, manufacturing, about half activity is stockpiling, 70% of them not investing at the moment and more worrying right now, european customers delaying contracts for manufactured goods coming from the uk. we are now entering a prolonged uncertainty period. but at least we don't have no deal tomorrow. and so now what we need as quickly, the government to come to a solution, to come to a proper deal going forward. he wrote an open letter to the prime minister earlier in the week asking her to
revoke article 50 if the eu refused to extend the deadline. do you think cancelling brexit is a better option? what we thought was basically, we couldn't face a position of her no deal was going to happen tomorrow, absolutely critical for many, many manufacturers involved particularly in integrated supply chains with europe. that is absolutely critical. we seemed to be making no progress this week which was incredibly frustrating to see the political system not galvanising and coming up with the right solutions of the only option was to say stop it, reset it, have a proper plan and proceed on that basis was really what we said to both the leader of the opposition and the prime minister. but the prospect of a new deal brexit are still there, it's just been delayed now rather than taken off the table. yes and the worry there will be the same continuing process. first of all, stockpiling issue, people putting capital into inventory will continue, no money available for investment so people will not invest until they are clear on terms of trade and we are still going to be
in that position, european customers are looking at other sources because they are uncertain as to what the future will be with uk suppliers. stephen, thank you. let's take a look at some of the other stories making the news more signs of progress in efforts to ease the trade war between the china and the us. the us treasury secretary steven mnuchin says the two sides have largely agreed on a mechanism to police any trade agreement they reach. the two countries have slapped hundreds of billions of dollars‘ worth of tariffs on each others goods. talks are due to resume in washington later today. us lawmakers are proposing new laws to force major tech companies to detect and remove any biases embedded in their computer algorithms. companies would be required to examine if algorithms were underpinned by race, gender, or other biases. facebook, amazon and other big firms have been accused of featuring algorithms that result in discrimination. shares in the brazilian mining giant vale have been hit after prosecutors said they were planning to file criminal
charges against the company over the collapse of a dam injanuary that killed hundreds of people. the wall streetjournal says it's been told by the lead prosecutor that authorities have enough evidence to charge employees at the firm. voting begun has begun in the world's largest election. indians have begun to go to the polls in a process that will take more than a month before we get a result. sameer hashmi is in mumbai. the members around this are absolutely staggering. do we know which way it is likely to go, which way the polls are indicating it michael? —— the numbers. way the polls are indicating it michael? -- the numbers. victoria, it's tough to predict indian elections, such a huge country and such a diverse base but if you look at the opinion polls released in the la st at the opinion polls released in the last few weeks they clearly show that prime minister narendra modi
are the frontrunners to win. in 2014 the prime minister '5 party got a majority of their own which was for the first time in 30 years but it's not expected, they are expected to lose a majority but still comfortably reach home, that's what the trend is showing at this time. the regional parties are quite confident that they will give a good fight and they expect a surprise in this election. the economy obviously a hugely important part of the selection and the election campaign is both sites? it is. you look at the 2014 election, the prime minister came with a promise of reviving the economy, since then the economy has grown 7% every year, some sectors have done well but there are two big problems that confront the economy. unemployment ata45 confront the economy. unemployment at a 45 year high, india needs to create a million — 10 million new jobs every year, given that half the population is under the age of 25,
the economy has failed to do that because private investment has been falling and secondly, the agrarian crisis, more than 50% of the population relies on farming and that sector has not been doing very well, there have been a lot of protests across the country by farmers. the government announced some schemes for them but that hasn't changed things on the ground on the opposition parties are using theseissues on the opposition parties are using these issues to target the prime minister in this selection and that's why it's become one of the main issues in this election campaign. thank you. we will leave it there. let's check in with the markets. lingering worries about global economic growth is slowing. one of the well ‘s biggest luxury goods companies has had a pretty goods companies has had a pretty good quarter, brexit taken another twist and turn in the uk housing market still having a torrid time. we'll talk about that in a moment. amid all the economic doom and gloom, rest assured
that the wealthy are still buying shiny new things. lvmh, moet hennessy louis vuitton, reported a 15% jump in sales for its fashion and leather division. lots more on luxury later in the programme. michelle fleury has the details of what's ahead on wall street today. on thursday, the walt disney company is expected to release the details for its new streaming service, disney+. the media giant is expecting to launch it later this year, although the actual date may not be revealed for another few weeks. of course, the big question is how much the service will cost. the company has previously said it would be cheaper than it streaming rival, netflix. also happening thursday, a report from the us labor department is expected to show producer prices likely rose 0.3% in march compared with a pretty marginal rise of 0.1% back in february. michelle has changed, hasn't she?
sorry, that was samira hussain and this is actually james sorry, that was samira hussain and this is actuallyjames bevan. the one and only. we wouldn't mistake you. you can do. but never mind. let's on quickly. the markets had barely moved despite all the who had last night so what are investors thinking? they are worrying about global growth but on the other hand, the federal reserve has made an unequivocally clear they will take whatever action is necessary to keep the united states economy moving and people are saying, maybe the fed will not only finish quantitative tightening, and reverse quantitative easing during the summer but they might ease policy formally in a rate cut in the fourth quarter and that inevitably will encourage people on bond yields, relatively supportive of equity valuations. we had our correspondent in mumbai talking about indian elections but what are investors looking for? they will
hope for a continued pass towards more structural reform. as she said, what we have to see a strong economic growth and frankly we need stronger growth in india, than india has enjoyed in order to generate the shift from agriculturaljobs to industrial. we have a population of around 520 million working, half of those in agriculture but that only produces 15% of economic output. what we need to see is a shift in industry, that needs faster growth as we sailed from china. james, come backin as we sailed from china. james, come back ina as we sailed from china. james, come back in a bit and talk to us about your favourite movies. back in a bit and talk to us about your favourite movieslj back in a bit and talk to us about your favourite movies. i cannot wait. james, thank you. still to come staying relevant with the times. we'll be hearing from a fashion brand which has managed to stand the test of time. you're with business live from bbc news. the housing market is stalling as brexit uncertainty hits
the property sector — that's according to the royal institute of chartered surveyors. new instructions and sales have fallen as demand dries up which could lead to a fall in house prices. simon rubinsohn is the chief economist for the rics. talk is true what you're seeing in housing market. what we hear our buyers are more cautious and it's not surprising given the uncertainty given the state of the brexit negotiations and that's been a feature of the market over the last six months. buyers are cautious, sellers are holding back from putting property on the market so you have a bit of energy, not a lot going on is the brexit impasse continues. there seems to be quite a divergence appearing between london and the rest of the uk.” divergence appearing between london and the rest of the uk. i think london and the south—east have certainly had sort of, more negative
feedback and sentiment has been downbeat in those regions but actually, what we are hearing, some of that adverse moved, tone, spreading to the rest of the country. think a flat trend is fairly visible in many parts of the country now, as far as the market is concerned. i think the worrying aspect of this is notjust concerned. i think the worrying aspect of this is not just what's happening in terms of the current housing market, it's also what it means in terms of new build development and remember, we are in the midst of a housing crisis, the government is focused on trying to get development sharply higher and we are not seen that coming through if you look at the pipeline. simon, thanks so much. if you want to get more on all the stories we are coming, go to the website today. today you can read about the latest progress in the us china trade deal. on the business
page, richard, can you bring it up, please? thank you. our gorgeous, lovely director in our ears. the us treasury secretary saying the us and china have largely agreed on a mechanism to enforce a potential trade deal between the world ‘s two largest economies. that is big news because this trade dispute between them has been rumbling on and on. if you want to hear more about that go to the website. your're watching business live — our top story — the uk and eu have agreed a so—called flexible extension until halloween. i cannot wait. october the 31st, trick or treat? donald tusk sent a stark message for britain please do not waste time. you said it a lot better earlier. i gave it some welly. do
not waste time. anyway, let's move on. quickly. let's talk luxury. now, for many established brands, keeping up to date with the changing face of fashion can be a challenging task. however some firms manage to evolve with the times. the menswear clothing market has been rapidly expanding in recent years. last year it outpaced female clothing and was valued at $442bn. dunhill was founded in 1893 and has been offering bespoke menswear clothing for over a century. the firm recently moved into new headquarters in london and is aiming to expand globally. it currently has over 100 stores across the world. andrew maag is chief executive officer at dunhill. welcome to the show. firstly, talk us welcome to the show. firstly, talk us through how you get your brand like dunhill, that's been around for so like dunhill, that's been around for so long, how do you keep up—to—date with what's happening in the world
of fashion. it's not easy, let me tell you. we have to be relevant and we have to get everyone in the company from retail stores to design to everyone focused on what's releva nt to everyone focused on what's relevant for today 's to everyone focused on what's relevant for today '5 man and what is relevant for their life. what is releva nt for is relevant for their life. what is relevant for today ‘s man. how do you know and do men even know?|j you know and do men even know?” think they do. as you mentioned luxury business is growing and menswear is growing and apart growing quickly is a casualisation of luxury. men are wearing casual clothes to work, a whole segment of their lifestyle has expanded. what does that mean for you? it means new category opportunities and opportunities for us to design and present products to them that are relevant. our space, is the only british luxury brand of our size and scale, we have a voice and opportunity to speak to them. looking at your customer, who is your customer these days? do you reach out to the millennial market 01’ reach out to the millennial market or the slightly older market? we have a great customer base that we can't and we had cultivated and
connected and we obsess with our existing customers but we are obsessed about capturing new customers and that she mentioned, millennial star square in our sites because the younger consumer is a luxury because the younger consumer is a luxui'y consumer because the younger consumer is a luxury consumer of tomorrow. in the next five years, 50% of luxury purchases will be made by millennium consumers, that's a big audience. you are fairly recently new to the job, you took some tough decisions early on including things like store closures. why are you deciding to reduce retail footprint? the brand has been brilliantly trading for over 125 years and during times, brands lose their way and we did lose our way, we lost our focus and we over expanded and so it was an opportunity to right size the network, to retrench the teams on how to focus on what's next and now grow the business. that is exactly what we are doing. dunhill is very uk, when you think about it. however, you have moved catwalk shows from london to paris, explain
why you made that decision? we are very much a british luxury menswear brand but we had trade injapan, hong kong, shanghai and the beautiful new shop in new york but when it comes to the runway shows, we had to look at where it was the ce ntre we had to look at where it was the centre of gravity for an audience, where the buyers were, the press, and where are we going to be seen and where are we going to be seen and compete against our peers so we had to think about whether we continue to stay in london, new york, milan or paris and paris was the closest choice and it made sense. we talked in the introduction about how international you businesses, you are internationally minded. yet, it is in essence in terms of style. what impact if any do you think something like brexit has a new business, as a people, talent, products, what is it? we are british and we cherish that fight and we think about it in everything that we do. but being british by definition is a very unique position and diversity, and the cosmopolitan nature of that is so important. in
out nature of that is so important. in our offices, i should say in our enterprise around the uk, we have over 250 people and we represent 30 different nationalities. that makes for a really rich group of people that can connect and think and be releva nt that can connect and think and be relevant and so losing that, if that we re relevant and so losing that, if that were to happen, again, we don't know what will happen, we have until halloween to find out, but we hope that we don't. that's an asset of being british. one very quick question. if i was a man watching this programme right now what kind of fashion tips do you have, what is hot? i would say go to the website. floodlit is hot this season? right now, for us, because of the transition outerwear is a big thing and trainers are a big thing. in the ce ntre and trainers are a big thing. in the centre weather is changing, we incredible outerwear, alfred dunhill created outerwear as a category in 19 -- 1905. created outerwear as a category in 19 —— 1905. autocomplete is, what you put on to go out whether it's a short jacket, harrington, trench.
it's a big category. perjohnny at home. darn, this is your tip. get some new trainers. 30% of purchases are made by women. interesting. we know where we are going. we will go men's clothing shopping. thank you so men's clothing shopping. thank you so much. thank you for coming in. so lovely to see you. the global cruise industry is currently gathered in miami to discuss the issues facing an industry that is booming globally. over 25 million people now take a cruise each year — a level of success that's focused attention on the industry's growing impact on the environment. do more ocean liners mean more pollution? well, richard fain, chairman and ceo of royal caribbean cruises told the bbc how his company is cutting greenhouse gas emissions. one of the things we want to do is make sure we reduce our greenhouse gases as much as possible, and there we use a bubble technology, and we literally blow teeny little
bubbles, microscopic bubbles underneath the ship so that it floats on a surface of air, so we reduce the friction between the ship hull and the water, and that means you use less energy to propel the ship. or, for example, we also have a huge freezer that we built to hold crushed bottles and cans so that we can do that in order to bring them back to a recycling facility. you know, just in the united states, we use 500 million straws a day. i mean, it's a mind—boggling figure, and with very little effort we simply eliminated them, we said no straws unless you ask for them, and if you ask for them, they will not be plastic. and then we eliminated all the other kinds of plastics that goes along with that. when i started on thisjourney, and it is a journey, we were trying to save things that could save 3—5% on fuel consumption.
now we're down to if we can save 0.5%, 1%, but if we can come up with a lot of things that save 0.1%, it really adds up. the birth of royal caribbean cruises talking to us earlier. —— the boss. what other business stories has the media been taking an interest in? i'm a big marvel fan. i read a story on the website which talked about in singapore, apparently, there have been queues of people queueing up to get tickets, cinema websites have gone down, there we go, there's the movie. and my question to twitter users, what film would you queue up for, past or present in the cinema? lots of replies. when he says harry potter, i waited for the deathly hallows pa rt potter, i waited for the deathly hallows part two for six hours. hugo says i wouldn't queue exactly but
certainly pulp fiction revival. bruce says none, even with free tickets and they drink. my time is more valuable. bruce, you party paper. come on! the cinema is great. james, what would you queue up for? do you know, i queued up to see the first star wars film but that was in the age before the internet. you can book these things online. what i found fascinating, in the states, the early pre—booking crashed websites with the new avengers film because it is quite so popular. it's over three hours long. it's really long. two hours 50 minutes too long. i'm planning to watch them on at the cinemas where you have sofas. it's going to be a life—saver for a numberof going to be a life—saver for a number of cinemas. going to be a life—saver for a numberof cinemas. one going to be a life—saver for a number of cinemas. one of the interesting challenges for the internet media, this great appetite to have more content. it's all right delivery system but if you don't have content, this was a great issue
for disney earlier this year. that's right. i we will have a fascinating battle royal as people say we need people to come to cinemas so we have to have proper films we have to have people logging in and watching, we will spend more time on content. netflix has changed the nature of film—making in the world economy. and i'm really impressed. chris says accused from 6am in leicester square for the 10am screening of the first star wars and for the 10am screening of the first starwars and came for the 10am screening of the first star wars and came back the next day and did it again. did you stand next to chris. i may well have done. do you recognise the space? darren says we queued up with a first or worse for every saturday for the first six weeks. i think it was 1977. phenomenal when it came out. and she identify, cinemas are luxurious. you have to have the experience. they've done a really good job at fighting back, increasing the experience. james, you're right, i love the cinema, i have to say, my favourite thing to do. james bevan, also my baby thing to do. she is so smooth.
that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. and happy thursday! good morning. a cold start to the day. temperatures down to —2 up to minus five degrees in england, up into scotland. another chilly one today. for most of us, dry with some sunny spells. high—pressure up towards scandinavia, keeping things really quite settled again through the course of today. the wind coming round ina course of today. the wind coming round in a clockwise direction around that area of high pressure, that's why we have this cold air moving in, right across the uk. it's another chilly one. for it today, we have cloud affecting parts of norfolk, suffolk, through lincolnshire, east yorkshire, some clad in the north—east of scotland. the chance perhaps of catching one 01’ the chance perhaps of catching one or two showers which could be on the
heavy side of they develop later. otherwise, lengthy spells of sunshine, the wind coming from the east, meaning the eastern coasts will be chilly at about 7—9d but further west, we have some sunshine, temperature is about 11—13d. tonight, there will be cloud floating around but on the whole, again, quite quiet. some clear spells, a bit of cloud still in the far north—east of scotland, temperatures not quite as low as they were last night. the frost limited towards the north—east of england and up into central areas of scotland. but it will be a rather chilly start on friday. we see some sunshine first thing. unlike today, there will be more cloud developing as the day goes on. quite a cloudy soda picture into the afternoon. eventually some sunny skies developing along the eastern coasts of england. up into the north—east of england. up into the north—east of scotland. temperatures down by a degree or so on today, so a cold
day, temperatures between 8—12d, below the average for the time of year. through this evening, not a great deal of change and as we go into the weekend, not a great deal of change, going to remain chilly for many of us! dry, some sunshine, the breeze will start to pick up a little during saturday. this is the pressure chart, you can still see the area of high pressure, cold air being drawn in, a thinker of warmer and milderair but being drawn in, a thinker of warmer and milder air but that sets out towards the west. it could bring cloud and outbreaks of rain across the far west of northern ireland during sunday but on the whole, over the weekend, try, there will be some sunny spells and again it will be 00:28:39,646 --> 4294966103:13:29,430 chilly. goodbye.