tv BBC Business Live BBC News April 29, 2019 8:30am-9:01am BST
this is business live from bbc news with maryam moshiri and sally bundock. spain's governing socialists win the most seats in the country's election. what will their victory mean for the economy? live from london, that's our top story on monday 29 april. two major challenges now face pedro sanchez: forming a coalition government and tackling a slowing economy with unemployment close to 15 percent. also in the programme... boeing holds its annual shareholder meeting with its boss under intense pressure to regain public trust after two deadly crashes involving its 737 max jet.
european markets are open, looking like they are in positive territory for now. also in the programme we'll be getting the inside track on how to grow a streetwear fashion brand from scratch. also, one travel firm says more of us are opting for long haul destinations this year. we want to know, where are you going and why? are you not travelling in the eu this time? if you are in the uk, has brexit affected your holiday plans? let us know — just use the hashtag bbcbizlive hello and welcome to business live. it's going to be a very busy week. and it was a very busy weekend. we begin in spain where the governing socialist party is celebrating winning the general election, though it's fallen short of a majority.
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 — is expected to slow to 2.2% in 2019. 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 in 2019. spain has been creating jobs recently — unemployment is currently at 14.7% — but it has one of the highest jobless levels in the eurozone and many of these newjobs are part—time, temporary and low paid. spain was hit particularly hard by the 2008 recession, with around 26% of the population at risk of poverty in 2017. sarah hewin, chief economist for europe at standard
chartered bankjoins me now. good morning, nice to see you. you we re good morning, nice to see you. you were listening to all of that. the spanish economy struggling for quite some time, give us your take on the news that has emerged since the weekend, what we know about this new government and what it might mean for the economy. the new government looks likely to be formed by the socialists with support of a more left—wing party and it will have implications for economic policy. as we mentioned, the economy is slowing but we know the left—wing party that probably will help form the coalition is keen to increase the minimum wage as well as increase social spending. of course, that will mean higher taxation so the net impact may not be that the economy actually takes off but there is certainly a programme which will try
to shore up consumer spending. the unemployment rate has been coming down although it's still pretty high, over a 14%. down although it's still pretty high, overa14%. as down although it's still pretty high, over a 14%. as we said, economic growth is here, 2.2%, the envy of many economies in europe, but with regards to spending power, if we have a socialist, strong left—wing government in spain will they be able to deliver on promises of that nature? the challenge is the budget deficit is relatively high, just below 3% of gdp so it's brushing up against the limits that the european commission, the european commission starts to get nervous. if you can increase spending and if you can raise taxes to cover that spending then you address that particular problem but as was mentioned, the level of debt is very high so there are constraints on what you can do in terms of a public spending
programme. and of course, for companies, and for wealthier individuals that may be facing higher taxation rates, of course that will potentially damage investment and spending at the higher end. sirrah, iwanted investment and spending at the higher end. sirrah, i wanted to ask you briefly about youth unemployment in spain, it's been chronically high for many, many years. and i know that's improving as well but the quality ofjobs as we mentioned, pa rt—time, quality ofjobs as we mentioned, part—time, low—paid, quality ofjobs as we mentioned, pa rt—time, low—paid, seasonal, quality ofjobs as we mentioned, part—time, low—paid, seasonal, give us part—time, low—paid, seasonal, give us your thoughts on the issue with youth unemployment? that's a real challenge for policymakers because you have incredibly high youth unemployment rates but overall, high unemployment rates but overall, high unemployment rates but overall, high unemployment rates compared to the rest of the euro area but particularly amongst young people and the way that previous governments have addressed this is to try and increase flexibility of the labour force. that means a lot ofjobs are temporary, part—time and the left wing party in particular wa nts to
the left wing party in particular wants to limit the number of temporary contracts that can be awarded, they want to make jobs temporary contracts that can be awarded, they want to makejobs more permanent. the question is does that hurt labour market flexibility, does it make the problem worse, employers are it make the problem worse, employers a re less it make the problem worse, employers are less willing to take on workers because it's more difficult to lay them off in a downturn? sarah, thank you for now. really interesting. so much more about spain, what's ahead for that country as they try and form a new government, on the website. let's take you through some of the other stories making the news. there has been further disruption for thousands of passengers of scandinavian airline sas after it cancelled hundreds of flights on sunday, due to a continuing pilot strike. the dispute over wages has grounded around 70% of the airline's flights and affected 170,000 people over the weekend. fewer british holidaymakers have booked a summer holiday inside the european union this year amid continuing brexit uncertainty, according to thomas cook. the travel firm says almost half
of the holidays it sold up until the end of february were to non—eu destinations, up 10% on last year. despite this, the firm says spain is still its most popular destination. get in touch about that story, we wa nt to get in touch about that story, we want to hear from you, where you are travelling and why. 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. i saw that film at the weekend, it was really, really good. a pretty positive day for asian shares today — we had some strong us first quarter economic growth figures from friday and some strong chinese
economic data today. that has moved the markets. busy week ahead aswlel for markets. us central bank meets this week and some more chinese data will give us more info on the health of the world's two biggest economies. in terms of european shares, they've opened pretty unchanged at the moment. spain is very much in focus. the markets looking at the election there, the socialist prime minister looking set to gain power on sunday ‘s election. the creation of new government is likely to take months and the composition of the government is not clear to the markets holding back a on that. and michelle fleury has the details of what's ahead on wall street today. boeing hosts its annual meeting of investors in chicago this monday. shareholders will want to know what the american airlines giant is doing to get its 737 max jet back in the air after two deadly crashes that left them grounded. after releasing quarterly earnings
last week the ceo dennis muilenburg said the first order of business was getting the planes back in the air but will the public want to fly boeing's bestselling aircraft once it's cleared for take—off? the answer will have implications for boeing, its customers and shareholders. also, google's parent company alphabet reports first—quarter results after the closing bell. wall street wants to know how the eu fines hurt results and when will some of its other bets such as self driving cars start paying off? lots of questions. lets get some a nswe i’s. joining us is eimear daly, foreign exchange strategist at macquarie bank. a really busy week. us jobs data coming out, federal bank meeting, trade talks resuming in beijing between america and china. lots going on. worrying for the markets,
significant market holiday so china and japan are out for a prolonged period this week. you have a potential kind of destabilising moves, short moves in the currency market and equities. definitely something to keep an eye on. all the earnings as well, michelle mentioned some of them, google, alphabet, the pa rent some of them, google, alphabet, the parent company, apple etc, a lot to keep an eye on. i think the market will be focusing on the us domestic data. we had the blockbuster us gdp print last week, and i think will continue to show the us jobs situation is sustainable, having stellar growth and we expect the federal bank to reinforce the message that it's all good in the us economic front. how does that affect the us dollar, so important to so many countries? absolutely. everyone has been calling for the dollar to weaken but that market expectation run away with itself, a lot of people thinking the fed will cut
rates so we might see a little bit more upside to the dollar, we think that that will come out and say global growth is picking up, financial conditions are doing well. given that, do you think it will change its tack, thinking about when it will increase rates again, possibly? i think the last few months they will not come out and advocate cuts so i think you could see a little bit more to the dollar. it's a huge shift in sentiment, think about where we were injanuary, sentiment, think about where we were in january, everyone sentiment, think about where we were injanuary, everyone talking about the us being in recession in 2020, eve ryo ne the us being in recession in 2020, everyone was discussing that the markets were all over the place. we've had a massive turnaround shift, i think we need to see some sort of normalcy coming back to the markets. stabilising growth coming from china, the us domestic economy showing its resilience so i think we need to kind of, take some time in the markets and get back to fundamentals. i wonder if they are
listening to you? we've been asking that for a long time? take a breath, everyone. thank you for coming in, you are about later, we will talk holidays and all sorts. absolutely. still to come... how to crack the street market. celebrity endorsements, hundreds of thousands of followers on social media, design to delivery in as little as three weeks. we'll get the inside track on the uk fashion brand "jaded london" with one of its co—founders. you're with business live from bbc news. how good are you with numbers? can you work out how much change you're due when you're shopping, or how much interest you might pay on your credit card? well, the charity national numeracy is calling on businesses to do more to improve the maths skills of uk workers. ben is looking into this — he's in our salford newsroom. i'm going to have to ask you this. what is five times five?|j
i'm going to have to ask you this. what is five times five? i was going to promise not to give you a maths test but you through one at me. good morning. we are talking about this, it's a real concern for a lot of workers. this study says 70 million workers. this study says 70 million workers up and down the country simply only have the maths skills of primary school children and it says thatis primary school children and it says that is a real problem because in all aspects of life, we need mass. we touched on a couple of them, working out how much interest you are paying, what change you might be due ina are paying, what change you might be due in a shop but other things, how much you should leave as a tip, what you need to organise for how long yourtrain is you need to organise for how long your train is going to take to get toa your train is going to take to get to a destination? of the basic things when you get to maths, many people are not good enough at. it has an impact on all aspects of life. we've been speaking to matty, a distribution worker in castleford new leads and he said he recognised the problem and got some help. it's like when i go to do
stuff, i, like, struggle with fractions and percentages. so when it gets over a certain number, like, if it's up into the thousands, and then you have to subtract it or divide it, or... it just gets all confusing, all the numbers, like mixing them up together. very confusing and having an impact on our personal lives when it comes to calculating interest, change, etc but the charity said that had a huge impact on economic performance as well. it could be costing the uk economy about £20 billion every year and failed productivity, not only because it takes people longer to work out some pretty basic sums but also because it means frankly, we are not achieving our full potential, there are things we should be doing at work that we are not. we talked a lot about the productivity puzzle, the idea that the uk and all of us as workers are putting in more hours but not producing any more as a country and so producing any more as a country and so that could be one of the reasons why productivity is still suffering in the uk. and also, there is a
clear indication here that people that struggle with maths are paid less so it is a real problem. your're watching business live — our top story — spain's governing socialist party is celebrating winning the general election, though it's fallen short of a majority. the new government faces a slowing economy, chronic unemployment and debt at 97% of the country's economic output. many, many challenges. the fashion industry is notorioiusly fickle. what can be ultra hip today — can be deemed ultra lame tomorrow. so getting it right when it comes to consumer taste is absolutely critical. and there's a lot at stake — especially here in the uk. where estimates for 2018 put the value of the clothing market
at around around $59bn or £46bn that's expected to rise by 10% by 2023. the growth of fast, disposable fashion might be slowing down in the uk. 0ne survey suggests that 64% of female shoppers think its worth spending money on clothes that will last longer. our next guest has made a vitrue of being particularly agile — when it comes to anticipating consumer taste — and has been rewarded with an expanding business. jade goulden, co—founder of uk fashion brand jaded london is with us now a super cool fashion brand. too cool for us. i was quite intimidated by it. tell us more, how did this start? i was working in the buying teams at asus, my brother was at university in nottingham studying business and we noticed a street was coming down into the high—end fashion, even brands like chanel we re fashion, even brands like chanel were doing more like sweats and joggers and it was becoming more
mainstream and rhianna went on the graham norton show wearing a tracksuit rather than a dress but no one was doing it at that affordable price point sol one was doing it at that affordable price point so i was working and i noticed a gap in the market that they couldn't source, something at that £45 mark so i quit myjob and then grant was at university so he would travel to leicester to source factories that we could do a quick turnaround of product where we could get a sample in three days and we could do the production in about 3—4 weeks. so that was basically how it began and now it's obviously grown over the years. we've been going for five years now. you and your brother. you were telling us that the fashion industry runs in your blood. my grandpa was a tailor and by dad and my mother in manufacturing clothing for the uk high street. so, then be used to go
on holiday we would go round the shops together and research and it wasjust something we've shops together and research and it was just something we've always lived and breathed. we are looking at some of your clothes now, this is the swimwear section, i must admit when i looked online, to get my head around your company because i knew you were coming in the programme, i was really struck by the swimmer in particular. i thought, was really struck by the swimmer in particular. ithought, my was really struck by the swimmer in particular. i thought, my gosh was really struck by the swimmer in particular. ithought, my gosh i was quite shocked, i thought it was really, i don't know, what's the word. it's all about female empowerment. the girls that we are at, they want to express themselves, they love their bodies, they want to show off their outfits and you know, wear it on instagram is huge for us, they want to show it off, wear it on holiday. so the girls choices, the women ‘s choice as opposed to sexualisation of young women. definitely. what interested me a lot about your brand and all these new brands that are coming out, how
important influencers and celebrities are. took me through how much of a difference it has made, you've had influencers and celebrities wearing your clothing, how does that translate to business? 33% of our revenue comes from instagram and influencers will request the clothes rather than as gifting them, we use quite an organic approach and we don't do much paid advertising, we will give them products they will request it and they will post it and it will immediately search the sales. we've had people like beyonce, taylor swift, rita 0ra wearing our brand. taylor swift wore the sequined bomber jacket and we've taylor swift wore the sequined bomberjacket and we've sold almost 8000 of them. give us an idea how big an idea this is, your brother is 30, your brother is 27, you started this five years ago, you were 25, your brother was 22. it's quite a
feat to pull this off. and it's a really competitive, cut—throat industry. at 24 hours of the day. my husband goes mad. i work, in the evenings i will do america and work with them and in the morning i deal with them and in the morning i deal with china so it's what does he do? he's a banker. you go. show us what you are about. these are very colourful, very bright, these are designed, three weeks before they go on sale. how does that happen so quickly? at the moment, we are designing july delivery, we work with quick time factories. because we have to hit the trend and be first to market because we like to think we set the trends rather than follow them. our customers, they wa nt follow them. our customers, they want to be the first, they want to wear, at the moment, dragon prince and flame prints are selling the best for us and the customer wants
to be the first to wear it, we have to be the first to wear it, we have to make sure we work at willie quick factories. -- really quick factories. -- really quick factories. we understand why it 24 — seven. it's so lovely to meet you. thank you for coming in. in a moment, we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. stay up—to—date with all the news as it happens on the bbc business live page. there is insight and analysis from a team of editors right around the globe. and we want to hear from you. get involved on the bbc business live web page. on twitter. and you can find us on facebook. business live, on tv and online. what you need to know, when you need to know it.
what other business stories has the media been taking an interest in? joining us again is eimear daly, foreign exchange strategist at macquarie bank. when looking a story from thomas cook, british people not planning holidays in the eu, moving further afield, thomas cook concluding that brexit uncertainty is causing this change but what did you make of it? i love the story, it's hard to prove it but it suggests there is some bargain—hunting, uk holiday— makers are saying where it is good value for us to go abroad? in europe, the euro has strengthened a lot versus sterling, sterling has had massive devaluation, it pays to go further afield. i think one thing that stood out to meet was turkey, it's lost a third of its value, going there is so third of its value, going there is so much cheaper. turkey is two on the list of the top five destinations, spain remains his number one, spain still up there but other places that are popular to
visit, we are actually going down. we asked a lot of people to talk to us we asked a lot of people to talk to us about where they are going, i will ask you in a moment for you're going, melissa from london so she goes to europe for easter but stays in the uk this year. that is a thing, i went away over easter and i didn't know which queue to get in when i went home. ian says blake's —— brexit not affecting his plans and can see white wood. many saying they will holiday in the uk as they do quite often. graham says the united states for him and the family this year, better value. united states for him and the family this year, bettervalue. so united states for him and the family this year, better value. so many tweets, chris says sometimes i wonder why spend thousands to go abroad when i can go to wales every single weekend, less stress, no language barrier. i love wales, used a holiday every year. i've just come back. i've got to plan something but it won't be for a while. where have you come back from? sri lanka. that was a few weeks ago. let's talk
about the penny and the 2p coin, the chancellor to decide on the future of these copper coins today. you probably, i'm looking at you, i'm guessing you don't remember the halfpenny coin? she doesn't!m guessing you don't remember the halfpenny coin? she doesn't! it was phased out in the mid—80s. nor do i! yes, i do. phased out in the mid—80s. nor do i! yes, ido. i phased out in the mid—80s. nor do i! yes, i do. iam in the phased out in the mid—80s. nor do i! yes, i do. i am in the old granny in the studio. when we talk about cashless society, getting rid of small change etc, most people are quite happy to see the back of it but charities argue that it could have a big impact on them because of that change goes on the charity pot at the till. it's absolutely true. i think one of the shocking statistics, 16% of penny and 2p coins go into circulation after they are once used, there is an argument to say what can you buy four 1p and 2p, but think of the impact on charities, on the homeless for example, we are definitely becoming
a cashless society, everything is going electronic. there are the factions that need to be addressed. having an easier way some people are very traditional, so many of them still around. i hear you. i am here. i've got to be honest. as my kids what you can get for a penny and 2p, they are adding it all up. penny sweets are so 1980s. all right, thank you for being the programme. that's it from business live today. 0ne one more tweet about holidays, charlie says cornel, we always go there, you can find an empty beach. indeed. you can for that. more space in the tower, you don't have to put it out in advance. thank you for all your comments, use the hashtag to look at the great debate about holiday destinations. thank you for watching. goodbye.
good morning. the weekend was one of two halves, on saturday, quite unpleasant conditions with storm hannah, sunday was a little bit better, through this week mostly try to start, quite warm, especially through tuesday but there will be rain moving eastwards mid week and then by the end of the week it will turn chillier. this is the satellite image this morning, this is world of cloud to the west stays there but look at this sliver of cloud through scotland, the east of northern ireland, through the isle of man, west wales and the south—west. that isa west wales and the south—west. that is a one front, quite weak, bringing outbreaks of rain this morning and moving further west, still sticking
around across west wales, south—west england and the east of northern ireland. elsewhere, patchy mist and fog and low cloud across the east, mostly clearing. sunny spells for many of us. feeling quite pleasant in the sunshine, maximum temperatures 14—17d, perhaps 18 degrees in the northern highlands. tonight, some low cloud returning across the eastern coast, especially around yorkshire, up into aberdeen. this zone of cloud and wet weather continuing across northern ireland, overnight temperatures tonight reaching a 5—7d. throughout tuesday, low cloud and mist unfold across the east will clear again, some sunshine for most of us but this rain across the west gradually moving into western scotland, west wales and the south—west of england. temperatures in the west 13—15d. elsewhere, a warmer day still as temperatures reaching potentially 20 degrees in
the south—east. high pressure keeping things relatively settled across eastern parts but we have this weather front, cold front, moving through during wednesday, a cold front bringing some rain, spreading towards the east, some brighter skies in the west later on. as it's a cold front, we see temperatures dropping in northern and western areas, head of that on wednesday, temperatures reaching 16, 17, possibly 18 degrees but all of us 17, possibly 18 degrees but all of us have a chilly day on thursday, outbreaks of rain, 11 degrees in edinburgh. friday, largely dry, but it will feel quite chilly at times with high temperatures of 11—13d. goodbye for now.
you're watching bbc news at 9 with me, annita mcveigh. the headlines. victims of rape and other crimes are being asked to give police access to their phones and social media accounts. campaigners fear it could discourage victims from coming forward, but a man who was falsely accused says it's a good idea. if my phone gets taken as a defendant, then it should be that the complainant's phone also gets taken, just to conduct a thorough investigation, i suppose. otherwise, it always seems a bit unsafe if you convict somebody but you don't have all the information that you should have had. spain's governing socialist party has won the most seats in the general election, but prime minister pedro sanchez‘s party doesn't have a majority and will need support from others to form a coalition.