tv Business Briefing BBC News April 29, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. a win for spain's socialist party, but for the new government a battle to overcome an economic slowdown, chronic unemployment and poor public finances. boeing holds its annual shareholder meeting today with its boss under intense pressure to regain public trust after two deadly crashes involving its 737 max jet. and on the markets, asian stocks are mixed at the start of a week that's packed news that may provide clues on global economic growth. japan is closed today for a public holiday.
elsewhere in asia, it is a mixed picture. we begin in spain where the socialist party is celebrating winning the general election. but for the new government the economic challenges loom large: a slowdown, chronic unemployment and poor public finances. spain may be one of the fastest—growing economies in the eurozone, but economic activity — or gdp — will slow to 2.2% in 2019. that is what is predict did. —— predicted. the bank of spain is warning that any new government should prepare for a downturn. lower economic growth will make it harderfor spain to reduce its public debt, estimated to be at around 97% of gdp this year.
spain has been creating jobs recently, unemployment is currently at 14.7%, but it has one of the highestjobless levels in the eurozone and many of these newjobs are part—time, temporary and come with low pay. spain was hit particularly hard by the 2008 recession. you may remember it well. as a result the nation saw a rise in poverty levels with over one quarter, around 26% of the population, in 2017 at risk of living in poverty or social exclusion. here's what the socialist party leader pedro sanchez had to say. translation: the socialist party has won the elections. we made it happen. the socialist party has won
the general election, and without the general election, and without the future has one in the past has lost —— socialist party. the future has one in the past has lost -- socialist party. well, we have a familiar face with us. jeremy thomson—cook, chief economist at worldfirst joins me now. it's nice to see you. good morning. give us your take on what is ahead. in terms of what they have to do, the economy is going to be up there, isn't it? he knows what he should have to do, spain has typically been a 2—party system, a lot of countries are, but spain hasn't had a coalition government for a0 years. putting together a coalition that can move together and work together for the betterment of the spanish economy may prove difficult and probably won't happen until after the european elections take place in may. eight so this is new territory after what many would argue, four yea rs of after what many would argue, four years of political turmoil, you know the catalan independence movement is
all a part of that. but as you say, he has been in position for nine months, but he had to call a snap election because he couldn't get his budget through. what are the real issues? the real issues, as you make clear a re issues? the real issues, as you make clear are three things. improvements of the unemployment pension. it's come down dramatically from where it was as the result of the global financial crisis, 26%. unemployment is still high, 1a.6%, long—term unemployment is also high injob security as well. 0nly greece and the eurozone has more people with zero hour contracts as we would call them here in the uk. job security isn't there. public finances, this isn't there. public finances, this isa isn't there. public finances, this is a left this government likely to be to be supported by the left government, more spending is likely to be an issue. when you look at that issue of poverty, that is probably what issues are looking for, more spending, more help those who are struggling and also
unemployment. in spain, like other economies in southern eurozone countries, youth unemployment is really chronic. it is. for a long, long time. youth unemployment is starting to pick up a little bit. youth unemployment is starting to pick upa youth unemployment is starting to pick up a little bit in spain, it's not as bad as it has been in greece or italy as well. one thing i would also say about the spanish economy, 2.2% of gdp, not as bad as a lot of people are saying. germany would love that. germany is basically in recession at the moment, they would love that. the economy is still growing at a fair pace. perhaps the rise of the far right in this election, is that something to worry about a little bit? they didn't receive as many votes as they expected an they are not leaving the eu. thank you, jeremy. it's been great to have you on the programme. loads more detail as ever on our website. boeing holds its annual shareholder
meeting in chicago later today, with boss dennis muilenburg set to face tough questions from shareholders and the media about regaining trust in its best—selling plane. the 737 max as been grounded worldwide after the ethiopian airlines crash last month that killed all 157 on board, and just five months after a deadly lion air crash. for the man at the helm at boeing, the shareholder meeting will be no ordinary one. the chairman, president and chief executive of the world's as commercial plane maker is fighting to salvage his company's reputation and public confidence in the 737 jet. boeing's reputation and public confidence in the 737jet. boeing's most profitable plane. the jet the 737jet. boeing's most profitable plane. thejet has been grounded around the world since mid march, after two fatal crashes. the most recent, the ethiopian airlines grass last month that killed eve ryo ne grass last month that killed
everyone onboard. —— crash. they are working on a fixed but the firm is under scrutiny from customers, regulators and passengers. southwest airlines is the largest global carrier flying 737 max aircraft. it's reported that boeing did not inform the airline that a safety feature had been deactivated. in well, pilots at american airlines claimed that boeing's training programme, aimed at help being pilots understand the ncas system does not go far enough. revenues have fallen by $1 billion, and boeing said last week it did not know how the crisis would affect its fortu nes know how the crisis would affect its fortunes going forward. it's a really busy week this week for financial markets, as it's a really busy week this week forfinancial markets, as i mentioned. including us— china trade
talks resuming. us treasury secretary steven mnuchin and trade chief robert lighthizer head to beijing on tuesday as the world's two largest economies continue tussle over trade. president trump postponed a planned increase in tariffs set for march 1. let's go to our asia business hub where shara njit leyl is following the story. it's nice to see you again. back in singapore. what do you think of the expectations now? that's right, it's something like the 10th round of trade negotiations, would you believe it? trying to avoid a full—blown trade war. we no significant issues are still unresolved, which is why, of course, they keep on reading. both sides we know are eager to reach an agreement, but the possibility of course remains that president donald trump would potentially walk away from the negotiating table with china if he isn't satisfied with how talks are progressing. in fact, steven mnuchin, leading that
negotiation, he reportedly said the talks are nearing a point where they would either produce a dealer and with no agreement. he will be heading to blazing with robert lighthizer shortly on tuesday with the chinese vice premier. discussions will cover huge issues including intellectual property, technology transfer, tariff barriers, agricultural, service purchases, enforcement, all sorts of things, essentially. the premiere will then lead a delegation to washington for additional discussions on may eight. so negotiations are of course hoping to have this whole deal wrapped up before president trump meets china's xijinping at before president trump meets china's xi jinping at another summit. before president trump meets china's xi jinping at another summit. all right, good to see you. thank you so for explaining that one. we will keep a close eye on those talks for you. now, let's brief you on some other business stories. disruption for thousands
of passengers of scandinavian airline sas after it cancelled hundreds of flights on sunday as a pilot strike continues from friday. the dispute over wages has ground around 70% of the airline's flights and hitting some 170,000 people over the weekend. tech giants will set the tone for another busy week of earnings. first up, googles parent company alphabet will report first—quarter earnings later on monday, while iphone maker apple is set to release financial results on tuesday. and that is only a couple dimension. —— two mention. the marvel movie series is becoming a serious money—maker. the latest avengers film smashed box office records taking $1.2 billion in its opening weekend. ‘avengers: endgame' earned $350 million alone in the us and canada, surpassing the $258 million mark held by marvel‘s ‘infinity war‘ last year.
that doesn't surprise me at all, i have three sons and all three of them are harassing me to take them to that movie. let's look at financial markets. this is the australian market, down half a percent, hong kong heading towards 196 percent, hong kong heading towards 1% higher, a mixed picture. a federal reserve meeting this week as well to add to all the other events. that is your as ms briefing. —— business. artificial intelligence currently used by astronauts in space could soon used by astronauts in space could soon be helping the nhs in england to diagnose bowel cancer. high—speed satellite technology is being developed by a university college in london so that kanto can be detected
from —— cancer can be detected from live colonoscopy video. the bbc‘s health and science correspondent james gallagher went to find out more. these doctors are performing a colonoscopy and moving a camera around the patient‘s valves. they are looking for polyps, which can become cancerous. the biggest challenge is to detect precancerous polyps which can grow in the bowel. we know about one in five polyps are missed during colonoscopy, and we wa nt missed during colonoscopy, and we want to do everything we can to improve the detection rate. anything we can do to improve detection will reduce cancer incidence significantly. can this computer softwa re significantly. can this computer software help doctors? it's an ai trained to spot polyps in real—time during a colonoscopy. and there, in the green box is a polyp, spotted by the green box is a polyp, spotted by the ai. but this is useful only if
doctors have access to a powerful computer with the right software. so the researchers are also turning to space technology to see if they can use satellites to connect any hospital in the world to the ai. clinical trials are planned for next year. it's a really exciting thing that we will be able to improve the lives of patients whether they are in an expert hospital in london or a rural, remote area of africa. medical inventions are in useful if they end up helping patients. most people in the uk still don't have access to the new and improved form of bowel cancer screening known as fit. james gallagher, bbc news. highway will breakfast will have more on those stories with louise and dan so be sure tojoin more on those stories with louise and dan so be sure to join them short. this is the briefing from bbc news. the latest headlines: spain's socialists have won most seats in the general election, but fallen short of an absolute majority. they're now set to form
a left wing coalition. sri lanka has banned face coverings following the easter sunday attacks that killed at least 250 people. aid workers in northern mozambique say they've not yet been able to reach many of the people affected by cyclone kenneth, three days after the storm hit. now it's time to look at the stories that are making the headlines in the media across the world. we begin with spain's el pais which shows prime minster pedro sanchez celebrating his general election win with his socialist party, psoe. mr sanchez will now enter negotiations with other leftwing party podemos in the hope to form a coalition government. in the independent, according to a latest poll the uk conservative party is facing a humiliating defeat at the european elections next month after support for the party slumped to its lowest level since 2013. on the times front page, victims of rape in the uk are being told that they must give police full access to all messages and photographs stored on their mobile phones or risk cases against their attackers
being dropped. in the times business section, several big fund managers believe that oil companies should shut themselves down because soon they will become impossible to invest in as the world switches to renewable energy. and finally in the ft, marvel latest film, avengers: endgame, has become the first film to gross more than $1bn globally in its opening weekend, smashing all previous records and cementing disneys dominance of the movie industry. it's great to have him in the studio. are your kids hassling you to see endgame. they haven't, but i'm a bit concerned after hearing your three sons did. they lobbied