tv BBC Business Live BBC News June 25, 2019 8:30am-9:01am BST
hello. this is business live from bbc news with sally bundock and ben thompson. the us flexes its economic muscle with more sanctions against iran. live from london, that's our top story on tuesday the 25th ofjune. iran says the latest round of sanctions won't have any economic impact, but close the door on future diplomatic relations. they them economic call warfare. —— call them. we will talk you through
what is at stake. also in the programme: anger at the agm — nissan's shareholders demand answers as the company's tumultuous partnership with renault dominates the discourse. we will be live from tokyo with that. and financial markets have begun trading and as you can see they are all heading south. we will talk you through the reasons why. also on the programme... the firm for foodies on the go — eatfirst is a growing high—end meal service. we'll find out how they're trying to stand out in a crowded market. and as us billionaires call for a wealth tax on the super—rich to tackle inequality and climate change, we want to know — would you pay more tax to tackle the world's problems? or do you feel you already pay enough? let us know — use the hashtag, bbc biz live. and very warm welcome to the programme. and a very warm welcome to the programme. we start in the united states, where the trump administration
is once again flexing its 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 its nuclear programme and change its behaviour in the middle east. last week, tehran admitted shooting down a us drone but has denied responsiblity 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. for example, 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 research from reuters. that compares to about 2.5 million barrels a day a year ago. ben. thanks, let's get some details on all of this. anahita thoms is head of international trade practice at baker mckenzie. shejoins us from our she joins us from our brussels story. anahita, good morning and welcome to the programme. sally was running through some of the details there and just looking at what was said by the us treasury secretary, these sanctions will lock up billions of dollars in iranian assets. looking at the implications, what does this mean day—to—day in iran, and is it significant? let me be very clear. when it comes to the economy as a whole, these latest set
of sanctions will not have a big impact. you have to see that the us has already targeted iran with significant sanctions for years already, and that non—us persons are not allowed to do —— us persons are not allowed to do —— us persons are not allowed to do —— us persons are not allowed to do any business with iran and even non—us persons are hit by us secondary sanctions, the territorial sanctions. and those sanctions target very broad sectors, like the oil and gas industry, steel, the financial sector, so the latest set of sanctions clearly does not have a big impact on the economy asa not have a big impact on the economy as a whole. it is individual sanctions, but when it comes to the question of how do you use sanctions
smartly, it is really questionable whether this is the case in this case, because what we use sanctions for is obviously what you want is a change in behaviour, and to initiate dialogue, but sanctioning the highest leader and potentially the foreign minister who you actually wa nt foreign minister who you actually want a dialogue with, so this is highly questionable. yeah, i wanted to ask about that. clearly from president trump's side it is an important political move, portraying him as the statesman, the man taking action. you are therefore questioning whether that actually has any real impact on iran, but what it does do and we have seen this with previous sanctions, it has led to shortages of some consumer goods, and that could cause huge problems, could it not? absolutely, but that is not because of sanctioning the political leader. it
is more because we cannot in the eu, no bank is willing to use... to do iran related transactions, and that is more the reason why consumer goods and pharmaceutical goods cannot be shipped to iran because no one is able to be paid. so i continue to doubt whether the latest set of sanctions have anything to do with that. it is rather a further escalation of the situation, and what actually can happen is, from a legal perspective, from a sanctions perspective, is that a further escalation leads to iran to further its nuclear programme, and then the un sanctions snap back into place and the eu consider that as well. anahita, good to speak to you. thank you for your insight. 0ne we will certainly keep an eye on on the bbc.
anahita thoms from baker mckenzie. let's take a look at some of the other stories making the news... the world trade organization says a spike in trade restrictions by major nations is threatening to hold back the global economy. it comes before a g20 meeting in japan later this week. those top 20 most advanced economies imposed nearly two dozen new trade barriers in the six months to may. that's the second highest figure since recording started in 2012. the american parcel firm fedex is suing the us government, saying it should not be held liable if it inadvertently violates bans placed on some chinese companies. the courrier irritated beijing over how it handled parcels related to the telecoms giant huawei, which is a banned firm. fedex‘s share price dropped over 2.5% over fears it would be blacklisted in china. britain's institute for fiscal studies says that borisjohnson's tax plans would cost billions and mainly benefit the most well off. the independent think tank has been looking at the plans
of the frontrunner to be the uk's next prime minister. his rivaljeremy hunt has accused mrjohnson of avoiding detailed scrutiny over his proposals. lots of diplomatic manoeuvring going on and we will take you right around the world to the places that is happening, including news about the us secretary of state mike pompeo, who is in india today. there are a host of trade and business matters on the agenda. the us recently removed india's preferntial trade status agreement but wants delhi's support when it comes to huawei and iran. you might remember from you might rememberfrom previous coverage. our business reporter zoe thomas is in mumbai. good morning, zoe. we talk about business and trade being on the agenda and so important right now given what we are seeing with the united states and china. just give the picture in india and how important these discussions could be. these talks are considered to be
really important. mike pompeo's main goal is to really get them back on track. india and the us had been talking for over a year about trade, but those talks got derailed about a month ago, as you said, when the us removed india from its list of countries receiving preferential trade status. for india, the us is a massive market when it comes to trade so it doesn't want to lose that, but the indian prime minister is also focused on having more companies make things in india and at the same time president trump is focused on having more companies make things in the us well they might boast that need each other but both countries have a real desire to have a when here and secretary pompeo has ta ken have a when here and secretary pompeo has taken the same hard line his boss has and that will make it difficult to come to any kind of agreement. if you could just lay the groundwork for talks to happen later this week at the g20, it will be a win for this week at the g20, it will be a winfor him. this week at the g20, it will be a win for him. thanks very much, zoe.
we will keep an eye on mike pompeo of course, as while everybody else. let's look at the asian markets, all down slightly in asia. —— as will everybody else. it was so flat in the us and wall street, very lacklustre. markets and very much a holding pattern at the moment because their attention is on the 620 because their attention is on the g20 summit. with talks between president xi and president trump happening on the sidelines, so that is what markets are looking out for. let's look at europe. as we said earlier, all key markets lower. some interim reports out in the uk, high street retailer shares up i9% in london, carpet makers. knew that, u nfortu nately, london, carpet makers. knew that, unfortunately, their losses are getting worse, however. let's return to japan getting worse, however. let's return tojapan and a getting worse, however. let's return to japan and a story that has dominated there, nissan and renault,
the rest of their former chairman. a huge individual within the global car sector. rupert wingfield—hayes is in tokyo for us. he has been across this for us. just tell us about this agm. it was heated and really reveal the fractious relationship between nissan and renault? it certainly did. i general meeting of what seem to bea did. i general meeting of what seem to be a very unhappy company, and as you said an unhappy alliance between nissan and renault, so the boss of nissan and renault, so the boss of nissan was there making a full and profound apology over what happened at nissan at the last year, with the arrest and dismissal of carlos ghosn at the top of nissan, and also there
was the boss of renault, and these two lea d e rs was the boss of renault, and these two leaders made it clear they do not see i to eye over the future of the alliance between nissan and renault, so as i say and unhappy company and an unhappy alliance. rupert wingfield—hayes, thank you very much indeed, with the latest from tokyo on nissan and renault. emma—lou montgomery is associate director for personal investing at fidelity international. nice to see you. give a sense of what is happening, because we were looking at the numbers and sally running through them, sort of a holding pattern with so many moving pieces at the moment? so much uncertainty is the only certainty! the big g20 meeting coming up this weekend, everybody waiting to see what happens there, and presumably thatis what happens there, and presumably that is why wall street is tentative at the moment. and that event in new york, jerome likely to be quizzed
about what is challenging the us economy, and that is really interesting? yes, all eyes will be on him because we will want to know what is happening with interest rates in the states, you might give an idea of the economy, give an idea of what donald trump might be discussing at the g20 regarding trade wars as well. so much could be asked of the united states and its position in the world. let's talk about something domestically here but something many companies will be looking at, southern water, a big company for utilities in the uk, hit with a massive fine within the last hour and this is for spills of waste water. explain what we know so far. we know that this is the biggest fine ever. dished out by the regulator. £123 million will come back to shareholders, and this is on the back of the fact they have not been getting rid of their waste in the correct ways, and i think there is actually meant to be an investigation now as well by the environment agencyjust
investigation now as well by the environment agency just to see what they have been doing and if it has been correct. it looks like it hasn't, but also it could be criminaland hasn't, but also it could be criminal and the fact they have been covering it off is a big issue as well for the regulator. a lot of work, as you said, for the regulator. what they found in this case was shocking and the company says it is deeply sorry, but it could mean some customers get a re bate of could mean some customers get a rebate of about £60 each, so some good news there. but not overall. emma—lou montgomery, good to see you. still to come... the art of fast food — we'll speak to one high—end meal service to find out what sets them apart from the delivery deluge. you're with business live from bbc news. stay with us for that. the cost of refurbishing the new home of the duke and duchess of sussex has cost uk taxpayers £2.11 million. the figures were revealed in the annual review of royal spending published by buckingham palace.
0ur royal correspondent nicholas witchell has the details. they chose windsor for their wedding, and when harry and meghan considered where they wanted to live the focus once again was on this town with its long association with royalty. they moved from kensington palace in central london for a secluded residence known as frogmore cottage, hidden away close to windsor castle. what is revealed today is that it has cost £2.11 million of public money to turn this cottage into a home fit for the duke and duchess of sussex. the officials here at the palace who control royal spending say it cost £2.11 million to reconfigure the cottage because it was in fact five homes which had to be stripped out to become one single residence. and those officials say that whenever the sussexes wanted features in their cottage which went beyond the basic level of comfort, they paid for them themselves. 0n the broader question of royal finance, the figures show that what's known as the sovereign grant
for 2018—19 amounted to £82.2 million. that's the overall cost of the monarchy minus things like security. of that, very nearly £33 million was spent on the refurbishment of buckingham palace, the infrastructure of which is said to be in urgent need of repair. the figures give an insight into royal transport costs. for example, a visit lastjune by the queen and duchess of sussex to cheshire by royal train and charter aircraft costjust under £30,000. the visit to the caribbean and cuba earlier this year by the prince of wales and the duchess of cornwall cost more than £400,000. 0verall, officials say the year was a busy one for the royalfamily, the members of which led by the queen carried out more than 3000 official engagements in the uk and overseas. nicholas witchell, bbc news.
lots more on that and other stories but let me take you to the business live page. sally has talked about this already, shares up 19% after it reported a narrowing of its losses last year, carpetright. clearly quite a lot of challenges for the firm to make this work but nonetheless they say their turnaround plan is continuing, they have been cutting costs, but their shares are up nearly 20%. you're watching business live — our top story: iran has responded with defiance to the latest us sanctions targeting its supreme leader, saying they'll close the door to future diplomacy. if you are wondering why we have our lunch in front of us there is a reason. . . laughter a decade ago, getting food and clothes delivered to your doorstep within hours was only for a select few. today such on—demand service is the norm — with food delivery leading the way. it's a thriving sector and now worth almost $95 billion worldwide.
it represents around 1% of the total food market and 4% of sales at restaurants and fast—food chains. well, one company that is aiming to disrupt the industry with it's online—only restaurant is eatfirst. actually, they already are. founded in 2014, it's offering a different experience in an effort to differentiate itself from more recognisable names like uber eats and deliveroo. benn hodges is culinary director and co—founder of eatfirst. you are not assertive chinese ta keaway you are not assertive chinese takeaway firm. you do this differently. talk us through that. we noticed a gap in the already premium takeaway away our ready meal market back in 2014 when we started.
we were servicing lots of corporate and decided to really build that arm of our business out. and when you say we, sorry to interrupt, that you and an investment banker who you got to know. but when you say that you saw this gap in the market this is when you are working in london as a top chef, headhunted at the age of 24 by the iv in the uk, came to london to work as a leading chef in their restaurants and that is when you got a taste for what was out there? —— the ivy. you got a taste for what was out there? -- the ivy. exactly. any chef will tell you the industry demands a lot of hours and i was running a very nice restaurant at the time, andi very nice restaurant at the time, and i cooked for rahul and his wife, and i cooked for rahul and his wife, andi and i cooked for rahul and his wife, and i was getting home at 1am, to reheat, to have a nice meal, and i thought, hang on, nobody is doing this, i need to bring this to
london. when you say you supplied corporate, this is office food, big events, that sort of thing, notjust an old takeaway here, something like this. how many people would it serve? between five and seven people depending on how hungry you are. and this is what you deliver to the office. we talk about how important it is to do this on demand. it is one thing sending out a little ta keaway one thing sending out a little takeaway but something quite different to do a big banquet meal foran different to do a big banquet meal for an office function. exactly. back when we started, we were very much on demand, enough for to mark people and now we are more into sales as more of a digital caterer. the lead time is 5p on the day before for next day delivery. we have built really intelligent it systems where we are actually looking at licensing —— 5pm the day before. this has helped us maintain
minimal waste. before. this has helped us maintain minimalwaste. you had before. this has helped us maintain minimal waste. you had to differentiate yourself because when you started in 2018, although you said nobody else was doing this, just eat and others were coming to market already, well you had to become something else and not try to compete with them ? become something else and not try to compete with them? it was almost impossible to compete with such big players so we thought, let's try something else, and it really worked out for us. you talk about having that software that make sure you get stuff at the right time to get it to people because you could get a really big order. how do you make sure you have all the stuff in that you need? sure you have all the stuff in that you need ? if sure you have all the stuff in that you need? if someone orders at five o'clock and are expecting at the morning after, how do you do that? the best thing about being busy and having such a scale that business already is we generally have food fresh in every single day so it has almost solved the problem for us. the system we have built to the sort of gram predict how much we are going to use and how much we have
actually sold. it is really data driven? very data driven. and you really have a war on plastic. most of your packaging, your process, the third, what happens to it afterwards, is sustainable? yes, it has always been one of their company pillars, sustainability. we were pretty much the first players in the marketplace to work with compostable packaging in 2014, 2015, and to this day we have kept that in our business and it is our target this year to be completely plastic free. you're nearly there? we are. all of our ready meals and also all of our food comes on in sustainable reasonable packaging and actually if we use this tray, made from sustainable wood in britain, 2.5 to three times, it is already cheaper than the disposable alternative. really interesting, and really nice to see you. nice to see the different element to it. absolutely.
i wish our viewers could smell this. it smells amazing! i was going to eat a bit but i have a feeling it has sesame seeds which will stick to my teeth. wait until we are all fair. thank you for coming in. really interesting. 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 day's business news as it happens on the bbc‘s business live page. insight and analysis from our team of editors right around the globe. and we wa nt editors right around the globe. and we want to hear from you as well. get involved on the bbc‘s business live web page at bbc.com/business. we are on twitter, and you can find us on we are on twitter, and you can find us on facebook at bbc money. business live, on tv and online. what you need to know, when you need to know. emma—lou is back to look at some paper stories. talk us through the story online
about the bbc billionaires saying they want to pay more tax if it is specifically used to tackle climate change. yes, billionaires, including a very famous investor, actually backing this, saying presidential candidates should back this wealth tax on the super—rich and the money should go towards fighting environmental... quite interesting when you think about donald trump in the run—up to his election, his tax affairs, it was huge, so much pressure on him to reveal what taxes he did pay etc and he tried to avoid that. is certainly dead, but interestingly in 1999 he suggested a one—off tax on the super—rich but that was actually to help the economy get through a tough period —— he certainly did. what he will think of this, i don't know. but many will be sceptical. it is all well and good calling for greater taxes, as a proportion of your income having less of an impact, isn't it? the worry that this will filter down and we start having a
green tax here, social tax there, because they say it is also about addressing income inequality is?” don't think anyone will object to the super wealthy putting some money into saving the environment, that would be a fantastic thing, but the worry is it starts to filter down. at all a plot here, let's do this, let's get some money in, because donald trump has not been so great on environmental issues in the us so it shows there is an appetite —— i think it is all applause here. some feedback. heidi says, yes, iwould pay some more tax. just heard about temperatures soaring in france and switzerland so climate change does exist. andy says it is not about paying more tax but is about educating people, and by educating doesn't necessarily mean interfering with airports or storming dinner parties. clive says no, i wouldn't, because it won't go i wanted to go, where people want it to go, it would
go into the treasury's coffers. that's it from business live today. we'll see you again tomorrow. good morning. yesterday some of us saw some flooding in parts of scotland. this morning it is more like eastern and south—eastern areas of england that will have some flooding issues. more thundery showers in the forecast today, very warm and very humid. we have this cloud that has been moving north across parts of england and wales, all coming out of france where that warmer, humid air is coming from and beneath that some very heavy rain throughout the morning, and particularly going towards lunch time and this afternoon, parts of north wales and north—west england, meanwhile in the east some parts will see that thundery rain without. still drizzle in eastern areas with cloud in eastern scotland, the eastern side of england, so cloud for many of us
but also some sunshine in areas where temperatures will get to about 22-25 where temperatures will get to about 22—25 celsius. as i mentioned, a bit cooler on those north sea coasts, into the teens. this evening and tonight, we keep a lot of cloud, especially across eastern areas, quite misty and murky, quite a close an uncomfortable night for sleeping once again, temperatures down to about 13—16 celsius in the south—east of england. wednesday should be a little drier, a little quieter with the weather for many of us. a few heavy showers perhaps kicking off across southern and south—western areas of england and south wales, some sunny spells in scotla nd south wales, some sunny spells in scotland and northern ireland and a few breaks developing elsewhere in the cloud, but largely cloudy again on wednesday, and most temperatures up on wednesday, and most temperatures up to the mid 20s. central scotland, and 16—20 elsewhere. for the rest of the week, high—pressure out towards the week, high—pressure out towards the atlantic extending its influence across the uk. this warm front
moving north—westward. that is introducing even warmer air, but during thursday while there could be some patchy cloud, misty conditions around eastern areas, with a north—easterly, case like many of us thursday will be a more sunny day and with that temperatures starting to rise further —— for many of us thursday will be more sunny. warmer areas likely to be in the west and thatis areas likely to be in the west and that is indeed the case into friday where the heatwave across europe is really taking grip, temperatures well into the low 40s, and across western areas is where we will have the temperatures into the high 20s. saturday, the east and south—east could see temperature clinic into the 30s. —— temperatures into the 30s.
you're watching bbc news at nine with me, annita mcveigh. the headlines: borisjohnson defends his brexit plan and insists he can get a deal with the eu by the 31st october. we will be working with our friends and partners to make sure that we have an outcome that is manifestly in the interests of people, businesses, communities, on both sides of the channel. renovating prince harry and meghan's new home has cost taxpayers nearly £2.5 million, royal accounts reveal. the parents of a teenager who died after an allergic reaction to sesame seeds in a baguette, say they're delighted that a new labelling law will be introduced. through her name and through this