tv Business Briefing BBC News June 25, 2019 5:30am-5:46am BST
this is business briefing. i'm sally bundock. signing away iranian wealth. president trump flexes america's financial muscles with new sanctions against iran's leaders. taking the tensions out of trade. america's top diplomat heads to india to talk tariffs, data and visas. and on the markets: is very much a wait and see approach. there is a holding pattern in the run—up to the 620 summit at the end of the week.
the united states is once again flexing it's financial muscle power in its battle with iran. president trump has signed into force a new round of sanctions which target the iranian leadership in a bid to halt it's nuclear programme and change it's behaviour in the wider middle east. last week, tehran admitted shooting down a us drone but has denied responsibility for a series of attacks on oil tankers. the latest sanctions target the iranian leadership right up to supreme leader ali khamenei and those around him. they'll effectively be be cut off from the international financial system because banks and other institutions that help them move assets will face penalties themselves. a host of us sanctions have already had a ruinous effect on iran's economy.
it's estimated to have shrunk by nearly 4% last year and a bigger fall is expected this year. meanwhile inflation, that's the increase in the cost of goods, was a huge 31%. that's made everything from food to electronics more expensive which has lowered living standards for iranians. and us sanctions have also cut oil exports — a primary source of income for iran. they've fallen to less than 300,000 barrels a day this month according to the latest estimate from reuters. that compares to about 2.5m barrels a day a year ago. back in april, the us said it's sanctions had denied tehran of "well over $10 billion" of oil revenue — that was when it announced the end of sanction exemptions for eight countries buying iranian oil. in a moment, we'll hear what iran makes of the latest sanctions but first here's the us
treasury secretary on their impact. for people who say these are just symbolic, this is not the case at all. we have literally locked out tens of billions of dollars. these sanctions will come along with additional entities where people are hiding money. these sanctions are hardly does make highly effective. lehmo the us should take these steps in order to put aside their odour from our region. -- the us. and also move away from economic warfare. against the iranian people. dr sam fowles is a fellow at the foreign policy centre which is an international affairs think tank here in london. 6ood good morning again, sam. what do you make of those two statements? the us saying the sanctions are highly effective and iran attaining this is economic warfare. this is right, both of them pulled up it has hit the uranian economy incredibly hard
and although the most recent ‘s sanctions are targeted at leadership, the previous wave have been almost completely untargeted and the main victims have been ordinary people in iran. what —— what impact will these sanctions have on the relationship between iran and the us. and what might happen next in the middle east? this can only escalate the tension because the effect, these sanctions make it personal. iran threatens to continue to begin enriching uranian beyond the level. does make uranium. it doesn't seem like the eu has found a way around these sanctions yet i will continue to do so so it is likely this is the end of the nuclear deal which could only inflame tensions in the region. and also, is not sanctions against iran ina also, is not sanctions against iran in a way. the reason they are so
effective is because banks, financial institutions or other institutions doing business with iran, they face heavy penalties for violation. absolutely was i remember in 2015 when the deal was signed, people are saying this was an enormous opportunity and financial institutions, law firms particularly, were saying, there is an enormous well of investment we're looking forward to involved in. essentially, the clock has been rolled back five years on that. i think we will be feeling the effects not just think we will be feeling the effects notjust in the obvious things like oil but in finance, and investment, across the board. you mentioned oil. the price of oil has been spiking in recent days because of the most recent days because of the most recent developments in terms of sanctions, et cetera, but would some argue that thinking in washington is the increased pain in iran because we have mentioned the increase in the cost of living et cetera. the people of iran are really feeling the impact of this. that may force some sort of regime change of
political unrest or something. some sort of regime change of political unrest or somethinglj some sort of regime change of political unrest or something. i can see how they might get to that conclusion. i don't think that's a reasonable position to take and i think actually, probably more accurate analysis of what is going on in washington is inward looking. that these sanctions make the administration look very tough to their base and that's what they are looking to win from this. i think any sort of, any strategic view of what this might achieve with iran, a regime change or relations, certainly hasn't been demonstrated so far in us conduct and i see no evidence for it now. thank you for your time evidence for it now. thank you for yourtime and evidence for it now. thank you for your time and analysis. it is a story we are keeping a very close eye on here. the boss of japanese carmaker nissan says that any plans for talks about a full merger with it's alliance partner renault are on hold while it sorts out its own problems. hiroto saikawa was speaking at his company's annual shareholders meeting.
0ur correspondent rupert wingfield—hayes is in tokyo. what else did they say? mr saikawa has been setting out how he would move forward after the sacking of carlos 6hosn. he said he deeply apologised for the conduct of the previous chairman carlos 6hosn and he was going to essentially restructure the top management, the organisation of the company, to make sure such a scandal didn't happen again. i have to say, mr saikawa is under tremendous pressure today during this shareholder meeting because he himself is seen as being a carlos 6hosn ally and has also overseen a dramatic fall in profits of the company and there has been
increasing calls, both in the media and amongst big shareholders here in japan for the last few weeks, for mr saikawa himself to go. and in terms of the outlook for the company going forward , of the outlook for the company going forward, because it is a critical time. that chrysler fiat merger was called off. we had a difficult merger in paris recently with renault as well stop is any new news about carlos 6hosn himself and what's happening with those investigations? those are ongoing and carlos 6hosn made an appearance in court earlier this week. i think as far as the renault nissan alliance is going, i think what is fairly clear is after they papered over the cracks following carlos 6hosn's —— departure and arrest, saying everything was good, its pretty clear there is deep, deep tension in this relationship and it is not going well at all and i think mr saikawa has made that clear in what he has said today as well. all right, rupert, thank you very much
indeed. that's the very latest on nissan and carlos 6hosn. let's talk about that us secretary of state mike pompeo. he is in india today. where there are a host of trade and business matters on the agenda. the us recently removed india's preferential trade status agreement but wants delhi's support when it comes to huawei and iran. our business reporter zoe thomas is in mumbai. what is on the agenda? if you want to understand what mike pompeo was to understand what mike pompeo was to accomplish on this trip, we need to accomplish on this trip, we need to ta ke to accomplish on this trip, we need to take a few steps back. india has been upset with the us ever since it put sanctions on aluminium and steel way back in march 2015. they have been talking for a while and india threatens to put in retaliatory ta riffs threatens to put in retaliatory tariffs but they hoped this awkward yield of something better between the relationship between the us and india but last week, the us removed india but last week, the us removed india from this list of countries
that receives duty—free access on certain goods to the us market and that made india step up and act and so now you have got these real tensions going on between the two countries, right as mike pompeo was about to arrive. this trip should help to lay the groundwork for a meeting set to happen between president trump and prime minister narendra modi this week at the 620 summit of the problem is, mr pompeo says he wants these talks but he has still been really tough. like his boss, he keeps saying india is not playing fair when it comes to trade and they are going to need to make significant changes if they want to some deal to be created. thank you zoe. that is where mike pompeo is at the moment for the above cost, he was in uae, saudi arabia, just yesterday.
the united states and china's top trade officials have spoken on the phone about trade. the conversation involved us trade representative robert lighthizer and us treasury secretary steve mnuchin speaking to china's vice premier liu he. that is your business briefing. food businesses in england and northern ireland would be required to list all of the ingredients used in prepackaged meals to help protect those with allergies. the legislation — which will come into force by 2021 — will be called natasha's law in memory of natasha ednan—laperouse, who died from an allergic reaction after eating a sandwich from pret a manger. businesses will be given a two—year implementation period to adapt to the changes. 0ur correspondent daniela relph has all the details.
it was the start of the southern —— summer holiday and natasha was on her way to france but on the plane, she began to suffer a catastrophic allergic reaction and died soon after. natasha had eaten a sandwich from pret a manger. the packaging did not say it included sesame seeds. the ingredients that caused the devastating reaction. since her death, herfamily the devastating reaction. since her death, her family have the devastating reaction. since her death, herfamily have campaigned for a change to the law. speaking up to her inquest, they spake over —— they spoke of their anguish. beloved daughter died in a tragedy that should never have happened. she died because of inadequate food labelling laws. it feels to us that if proto— manager were following the law —— pret a manger, then the law was following russian roulette with my daughter public life. now the law
will be introduced this summer and will be introduced this summer and will come into force in 2021, to give businesses time to the changes will stop all prepackaged food going directly to sale must have all its ingredients listed. natasha's pa rents ingredients listed. natasha's parents have welcomed the legislation, describing it in a way to stop others from suffering the enduring agony they have suffered. coming up at 6:00 on breakfast —jon kay and louise minchin will have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: the frontrunner to be the next british prime minister — boris johnson speaks exclusively to the bbc. he insists he can deliver brexit by the october deadline. much of western europe braces itself for a heatwave — with temperatures set to reach a0 degrees celsius. now it's time to look at the stories that are making the headlines in the media across the world.
we begin with the times. and uk pm hopeful borisjohnson who begun a fightback today with a series of public appearances intended to dispel accusations that he is hiding from scrutiny after police were called over an argument with his partner. meanwhile, in the independent, mrjohnson has been warned that as many as a dozen conservative mps will back a vote of no confidence, triggering a general election, to block a no—deal brexit. the former foreign secretary has promised to take the uk out of the europe union on 310ctober with or without an agreement on divorce terms. the gulf news looks at tensions in the middle east. reporting the us is seeking support from allies for a programme to monitor commercial shipping in the arabian gulf after attacks on tankers that washington has blamed on iran. the guardian says, according to new research, members of britain's elite who hold the topjobs in politics, thejudiciary, media, and business are five times more
likely to have been to private school than the general population. the mail asks is this royal make—over too expensive for the taxpayer to bear? the daily mail reports the duke and duchess of sussex have spent £2.11 million of public money doing up their windsor home. the overhaul of frogmore cottage was approved by the queen, according to recently released accounts. and finally, could your morning caffeine fix be equivalent to a mini work out? according to a new study, coffee can help you lose weight — as people burnt off more calories after drinking a cup. scientists have discovered caffeine promotes the use of tissue called brown fat which eats up energy to make heat. interesting. we have a lot of to talk about. with me is fiona cincotta who's a senior market analyst at city index. 6ood good morning. nice to see you. we