tv Business Briefing BBC News June 28, 2019 5:30am-5:46am BST
this is the business briefing. i'm victoria fritz. trade war showdown at the 620. presidents trump and xi prepare for talks amid warnings that failure to do a deal could push the world into recession. plus, iquit! sirjony ive, designer of the ipod, the ipad and the iphone is to leave apple after almost three decades. and on the markets: asian shares stumble as doubts creep in about the prospects for peace in the us—china trade war.
we start in osaka, japan, where leaders of the 620 group of the world's top economies are beginning their summit. for global financial markets and the business world at large, the big moment comes on saturday morning, with trade talks between president trump and xijinping. there's been cautious optimism that the meeting could produce a deal to stop a further escalation of the trade war that is threatening the health of the world economy. on may 10th, the us raised taxes on chinese imports worth $250 billion a year from 10% to 25%. china then retaliated with taxes on us goods of between 5% and 25%. the us is threatening to hit
a further $325 billion of chinese imports with the same taxes if a deal can't be done, pretty much covering everything the us buys from china. china of course is sure to retaliate again. well, according to economists at bloomberg, if this happens, and all us—china trade is taxed, the cost to the global economy could hit $600 billion in 2021. that could mean a global recession in the view of swiss bank ubs and a 20% slump in global stock markets, with emerging markets particularly badly hit. this week markets have been calmed by various reports a deal could be on the way. but on thursday, president trump's economic adviser larry kudlow was quick to play down those reports. in the discussions and negotiations, tariffs, our economy is strong, their economy is very weak. perfectly happy with that. if talks
fail, he said he will go to plan b which is another round of tariffs. if the talks do better, then perhaps, perhaps, we might avoid that. in the last hour or so, china's president xi has been addressing a meeting of the brics developing countries, brazil, russia, india and china. rico hizon has been following this for us. what did he have to say? that's right. victoria, he was in no move whatsoever for pleasantries right. victoria, he was in no move whatsoever for pleasa ntries and right. victoria, he was in no move whatsoever for pleasantries and only had soft word on the eve of his meeting of his meeting —— only had tough words on the eve of his meeting. he said some develop countries are taking protectionist measures that are leading to trade conflicts and economic blockades calling them the biggest risk in the increasing instability in the global economy. the also stressed that all this is destroying the global trade order, it also impacts common interest of countries and overs ha d ows interest of countries and overshadows the peas and stability
worldwide. —— piece. this comes ahead of xi jinping's worldwide. —— piece. this comes ahead of xijinping's meeting with donald trump as the leaders try to resolve their ongoing trade war as well as major disputes like highway and the south china sea. ahead of this crucial meeting, japan, america and india held a trilateral earlier. the render a moody highlighted connectivity and development —— narendra modi. trump's one—on—one meeting with mr modi hopes to smooth out out sooner rather than later. in washington, trump‘s administration tries to lower the us trade deficit. soa tries to lower the us trade deficit. so a lot of wheeling and dealing in this two day summit in osaka, japan. you very much, rico. —— thank you
very much. greg perdon is co—chief investment officer at arbuthnot latham, a private bank in the city of london. what do you make of all of this? there seems to be a huge amount at sta ke there seems to be a huge amount at stake here and now people are talking about a global recession with deals undone. does tally with your forecast? we are looking at as the trump's playbook is all about fire and fury. before the meeting and then after the meeting, then a bit of kissing and making up. i think this will be the same playbook stop both xi and trump need a deal. xi needs it and trump needs a performing stock market to get re—elected. performing stock market to get re-elected. one of the key strategies in the trump playbook as you put it is the idea that america is going to do well out of all of this and that china will not do well out of all of this and so therefore,
you know, it's quite an obvious win— lose scenario. i wonder if you believe whether you can divorce the two and there really is a clear winner or loser in this kind of being. 0r winner or loser in this kind of being. or not? ithink winner or loser in this kind of being. or not? i think trump likes to oversimplify things and that's why he such a great salesperson. the reality is even if the chinese do suffer a setback, they have a tremendous amount of tools in their toolbox to counteract and they are already implementing data. for example that using monetary policy, there doing tax cuts for low working and —— lowerand middle there doing tax cuts for low working and —— lower and middle income workers, they are also building more bridges to nowhere. the amount of fiscal stimulus they are doing in terms of their firepower, they have a tremendous amount of five hours ago. and this concerns about a total derailments of the global growth. markets appear to be losing confidence over there stop investors seem pretty jittery, confidence over there stop investors seem prettyjittery, it's fair to say. what are investors saying to you? we have two groups of
investors. as a generalisation, less experienced investors are more jittery, they are more concerned, more experienced investors are less concerned because they recognise that markets have a good track record of shrugging off geopolitics. so, for example the s&p 500 right now is at an all—time high. so, for example the s&p 500 right now is at an all-time high. isn't that more of the case that we have record low inflation and interest rates around the world? and that there is just too rates around the world? and that there isjust too much money and it has to go somewhere rather than a reflection of the risks involved around the world ? reflection of the risks involved around the world? it's true there is around the world? it's true there is a lot of money but it doesn't stop the money from going into cash. a lot of money but it doesn't stop the money from going into cashlj see. so we've seen the money from going into cashlj see. so we've seen a reversal the money from going into cashlj see. so we've seen a reversal in monetary policy in terms of the federal reserve and if we don't get a trade deal, will get more done business in the fed. if we do, then the fed goes on hold again. ——
dovishness. i think there are enough tools in the toolbox to make a good solution. thank you. to california now, where the designer of some of the most successful gadgets of all time from the ipod to the iphone and ipad is leaving apple after almost three decades. sirjony ive is setting up his own design consultancy, which will still work on products for apple. but the news still wiped $9 billion off the value of the tech giant. from san francisco, here's cody godwin. he's been called the most influential industrial designer in the world, designing the ipod, iphone and pretty much any apple product you used. hejoined the company in 1992 when it wasn't doing so company in 1992 when it wasn't doing so well, that after his imac and later the ipod, things began to turn around. mr ive had a very close relationship with the late apple founder mrjobs even relationship with the late apple founder mr jobs even being relationship with the late apple founder mrjobs even being referred to as his spiritual partner at apple. tim cook said his role cannot
be overstated. mr tim two —— missed ted mack said this was a natural change, though he won't be leaving the company entirely, saying he was to be very involved for hope lee many years to come. the company has yet to name who will replace him in the relative design officer —— hopefully. this comes at a time when investors in the world's most valuable company i worried about the departure of the retail chair. following his departure, the company's following his departure, the compa ny‘s stock dropped following his departure, the company's stock dropped by i%. his new company is called lovefrom and will be in independent design company. aside from that, we don't know much about it yet. apple have confirmed they will be clients. let's brief you on some of the other business stories. boeing has told customers it will take until at least september to fix a newly identified problem on its grounded 737 max.
that means the plane maker's best selling jet won't return to service until october at the earliest, significantly longer than most airlines had expected. the 737 max has been grounded since march following two crashes that killed 346 people. shares of nike have fallen sharply after it missed wall street profit estimates for the first time in seven years. the world's biggest sportswear maker is spending heavily on product development, sponsorship and marketing. that saw profits fall in the three months to the end of may despite a 4% rise in sales. the number of people doing insecure ‘gig economy‘ work has doubled in the uk over the last three years, according to trade unions. research for the tuc found one in ten working age adults are earning money working via apps such as uber or deliveroo, compared with one in 20 in 2016. it says the majority also have other jobs proving, "working people are battling
to making ends meet." that is it from the business news, political coming up. today marks the 50th anniversary of the stonewall riots in new york. the violent protests by the gay community came to be an important catalyst for the gay rights movement across the world. from new york, ben hunte reports. it was here in new york's greenwich village where the riots erupted, and many say the modern lgbt movement was born. a police raid on the stonewall inn, a gay bar run by the mafia, sparked days of rioting. gay people in 1960s america suffered state—sanctioned discrimination. they were denied jobs
in the government and military, and routinely branded as mentally ill. half a century later, the bar is still standing. mark segal was there when it all happened. police barged in. theyjust started pushing people around, and anybody who looked like they were successful, they went up to them and said take out your wallet, and they took the money. and they didn't care, because that's the way you got to treat gay men and lesbian women in those days. you treated them like trash. it was then the gay people decided to fight back. it was the first time gay people said to police, no, this is our neighbourhood. you aren't going to tell us to get off our street. and we picked up stones, we picked up cans, and threw them. what followed was days of riots and protests. just a year later, america's first gay pride march took place. the whole of new york appears to be celebrating this year's special anniversary.
across the city, rainbows are everywhere, and events documenting lgbt rights are happening daily. i'm proud of what happened there. but veterans of that struggle warn there's no room for complacency. with hate crime on the rise in many american cities, they say the lessons of the stonewall riots are as important as ever. ben hunte, bbc news, greenwich village. this is the briefing from bbc news. the latest headlines: round two of the debate of democratic presidential hopefuls has taken place in miami. frontrunnerjoe biden came under attack. much of western europe continues to bake under high temperatures, with huge wildfires raging in spain.
now it's time to look at the stories that are making the headlines in the media across the world. we begin with the front page of the i and — like many of today's papers — it's all about the ongoing tory leadership contest. it has this warning from scottish tory leader ruth davidson, who says borisjohnson's brexit plan could break up the union. staying with brexit and the times reports that the french owner of vauxhall has given the car industry a boost by saying it will build the new astra in britain — but only if there's a ‘favourable' brexit deal. the financial times has an exclusive interview with vladimir putin speaking on the eve of the g20 summit in osaka, he claimed liberalism had "become obsolete". the business section of the times reports on the announcement from sirjony ive, the iphone designer who gave apple its look, is leaving the tech giant to start his own company.
the independent reports that uk gambling firms have paid a record £19.6 million in penalties last year for failing to protect problem gamblers and stop money laundering. but asks is it enough? and finally the back page of the metro has the headline ‘great scott‘ — in reference tojill scott's goal that helped propel the lionesses through to the semi—finals of the women‘s world cup! with me is cornelia meyer, ceo of mrl corporation, a business consultancy. lets start, will return to the sport but let‘s start with the tory leadership contest. the times, different paper is quite revealing, saying that borisjohnson is planning an emergency budget after claiming a day ago that the chances ofa no claiming a day ago that the chances of a no deal brexit, written leaving