tv Business Briefing BBC News July 2, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. trump's escalating trade wars. the us threatens the eu with tariffs on another $4 billion of goods, including italian cheese and scotch whisky. digital india. will the first annual budget from the new modi government deliver on his promise to get every village online? and on the financial markets it's a flat day of trade across asia apart from the hang seng in hong kong. despite the political turmoil stocks are headed higher — it's open today after a long weekend.
it is the first chance for the market to respond to the us— china trade twist. just days after reaching a truce with china, washington has ratcheted up pressure on europe in their long—running dispute over aircraft subsidies. the us trade representative‘s office is now threatening tariffs on another $4 billion of eu goods including olives, italian cheese and scotch whisky. that's on top of the list of products worth $21 billion announced in april. the news of new tariffs comes as eu leaders meet later this morning. they will try and break the deadlock over who should get the top jobs — including the role of european commission president. the bloc is facing some big challenges —
including a stand—off with italy over its budget. italy owes more than $2.5 trillion — and it's rising — as the government spends more than it earns. on the positive side, unemployment across the eurozone has fallen to its lowest level in a decade — but eu growth forecasts have been slashed amid worries over global trade tensions. in a bid to spread risk, the bloc has been working to diversify its trading links and last week agreed it's biggest trade pact ever — covering 780 million people — across a number of south american countries. this is what german chancellor angela merkel had to say yesterday about the negotiations to chose the new eu leaders.
translation: i think that after a few hours of sleep we will be in good shape to seek a compromise. especially because we want to achieve results before the president of the european parliament is elected. in the current calendar it will be on wednesday so we have a limited time left until then. i think it is complicated but i still hope that with a bit of goodwill it can be done. let's see. that was angela merkel. eimear daly, emea fx strategist, commodities & global markets at macquariejoins me now. there is a lot going on within the eu. angela merkel there trying to sound positive but there has been real issues about finding a new european commission president, council president, the new boss of the central bank. these are big
roles. absolutely. this is when a new eu emerges. we are heading into the european parliamentary elections talking about the problem of populism to this is where the risk crystallises because most decisions by the european council are made unilaterally so everyone needs to agree. and now we have three leaders who are our populists. 14 italy, once the pollen, one for hungry. they have leveraged going into these meetings. they want to replace the current president, commission president and council president with leaders more synthetic to their anti—immigration aims. so they are looking for people they can influence. as you say, it is an important time for the eu. it is negotiating the uk's exit but also european parliamentary elections
displayed stark differences within the block. so in terms of who may come through as a new leader, who was ahead of the pack at the moment? i think it is a complete divide. we obviously have the socialist dutch and the commissioner who is the front runner but then it is what sort of trade—off can you get? you have a package of leaders and they could also be looking for a key portfolio in the eu commission. so if you give those to the populist, hopefully that will satisfy some of their demands. for the financial market, what is key is the new ecb president. there are many diverse options, one very conservative in his polities that make policies and then we have a finnish candidate who will be seen is a lot more helpful for financial markets. there is also used to add to the pressure on the
eu leadership, it needs to think about its response to the new announcement coming from washington of possible tariffs on lots of goods going from europe into the us. that relationship is not getting better. not at all. what is key is how vulnerable the eurozone and the eu is to global trade. after the debt crisis, the strategy that came out from the eu leaders was that we are going to be an export orientated economy. it is notjust germany, it is the whole of the eu. so you see those numbers fall off in the eurozone sitting it is a comprehensive challenge, the structural make—up of the eu so increasing pressure from the us and also in asian trade. it will hurt not just germany also in asian trade. it will hurt notjust germany but the whole of the eu. you for your time and we will keep your cross news and development from brussels as they gather again today to try and hammer out who will be in charge of key roles that we mentioned. that's
brief you now on other business stories. opec has confirmed that its members will extend their production cuts to try and support prices. this means the cuts in production of overi million barrels per day that were first agreed at the end of 2016 will be extended until the end of march 2020. opec forecasts see the increase of supply from non—opec member outstripping the global increase in demand byi million barrels per day. investment guru warren buffett says he's donated $3.6 billion worth of stock in his company berkshire hathaway to the bill and melinda gates foundation and four other charities. the 88—year—old billionaire intends to donate all his berkshire shares to charity through annual gifts. the ‘giving pledge' in which billionaires promise to give at least half their wealth to philanthropic causes — was launched in 2010. china's huawei says it is awaiting guidance from the us department of commerce on whether it can resume using google's android mobile operating system on upcoming smartphones.
over the weekend, us president donald trump softened his stance on the chinese tech giant, and told g20 summit attendees that the united states will allow expanded sales of us technology supplies to huawei. ever since his first independence day speech in 2014, prime minister narendra modi has championed his "digital india" vision — including a flagship policy to get every village in the country online. but that project has fallen well behind schedule, and costs are mounting up. the hundreds of millions of indians who are yet to have access to high—speed internet will be hoping for more support from mr modi's new administration this week, as it presents its first annual budget. joe miller reports from haryana. the village of tain is just 80 kilometres from delhi but visitors from big cities seldom make the trip,
yet residents here are no longer completely isolated. they have access to high—speed broadband thanks to an ambitious government plan to bring fibre—optic cables to every community in india. translation: now people do not need to go to the city to get their work done. they can look for their jobs, do their pensions, paperwork, passport applications at the same time. locals can consult doctors online, while kids from nearby schools brush up on their general knowledge. butjust about half of india's 250,000 village clusters have access to high—speed broadband, and even fewer of them have facilities like this one. and with india increasingly becoming a cashless and paperless society, many are in danger of being really left behind. just down the road, men and children alike take shelter from the searing heat. the internet, they say, has not decreased the divide between them and those
living in cities. translation: we just want to tell the government that we want water, electricity, hospitals and a good education for our kids. the woman in charge of india's rural broadband scheme, admits it's sometimes been a hard sell. telecom infrastructure is fortunately invisible, it is under the ground so, while they are all keen to have roads, they're keen to have water supply projects, they're keen to have buildings, but when it comes to telecom, they do not really see what is in it for them. that is changing in india. affordable smartphones and relatively cheap mobile data are helping to drive that change but, with urban users consuming gigabytes worth of online content each month, villagers like tain will need more help to keep up to speed. joe miller, bbc news, haryana. that's it for the business
briefing this hour. up next — newsbriefing. the two candidates for the conservative party leadership, borisjohnson and jeremy hunt, will appear at hustings in northern ireland today. they're expected to face questions about how they would avoid checkpoints at the irish border if there was no free trade deal after brexit. our ireland correspondent chris page has more. the border is almost invisible but it is looming large in the contest for number 10. candidates claim they will be able to overcome the biggest obstacle will be able to overcome the biggest o bsta cle o n will be able to overcome the biggest obstacle on the road to brexit. the
process has stalled over the backstop which will keep the border open if there is no big free trade deal between the uk and the european union. mean the whole of the uk would share custom arrangements with the eu and northern ireland would follow a number of european rules on trading goods. boris johnson follow a number of european rules on trading goods. borisjohnson thinks theissue trading goods. borisjohnson thinks the issue should be dealt with after the issue should be dealt with after the uk leaves during trade talks. he visited northern ireland last year to speak at the democratic unionist party conference. its mps keep the government in power and are strongly opposed to a backstop. thanks for coming out. jeremy hunt says he wa nts to coming out. jeremy hunt says he wants to bring the dup onto his negotiating team. both he and mr johnson have suggested technology could help to avoid checks on the frontier. but the eu insists it will not reopen negotiations and the backstop must stay. the expert warms the challenge is not getting easier. changing prime minister does not change the reality of brexit. the
choices that are difficult that theresa may has had to face, they remain the same. and the changing politics and political situation in westminster does not affect those difficult decisions at all. the border brainteaser remains unsolved. finding a solution will be one of the most difficult tasks for the new man in downing street. more on that during wreck first at six o'clock this morning. —— during breakfast. this is the briefing from bbc news. the latest headlines: hong kong's chief executive has condemned the protestors who stormed and ransacked parliament — and promised to take a hard line. the us vows to keep up ‘maximum pressure' on iran, after tehran said it had exceeded the limit on its stockpile of enriched uranium agreed under the 2015 nuclear deal. more than a thousand people have been evacuated in north—eastern germany — as a massive wildfire
continues to spread. now it's time to look at the stories that are making the headlines in the media across the world. nearly all the front pages in the uk have the front page —— have this story on the front page. we begin with the times and hong kong where riot police fired tear gas at hundreds of thousands of demonstrators as they fought to evict activists who had stormed the former british colony's parliament building. the gulf news says the united nations atomic watchdog has confirmed iran has surpassed the stockpile of low—enriched uranium allowed under the 2015 nuclear deal with world powers. in the telegraph business section, uk firms are warning the entire manufacturing sector is "essentially in recession" as the eurozone's industrial slump,
the us—china trade war and turmoil surrounding the future of brexit all conspire to slam the brakes on factories' growth. the daily mail looks at comments made by uk secretary for education damian hinds who said that parents should put their smartphones down and take every opportunity to talk to their children face to face in order to improve social and literary skills. and finally, a new star has been born in the world of professional tennis. 15—year—old us player cori gauff delivered one of the most stunning shocks ever seen at wimbledon after beating venus williams in straight sets to reach the second round of the prestigious championship. she is 330 some ring in — make