tv Business Briefing BBC News September 9, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. british airways grounded. the first—ever strike by the airline's pilots cripples flights, causing travel disruption for tens of thousands of passengers. the electric threat. why brazil is now at a cross roads after going all in on ethanol—fueled cars. and a brand new trading week is under way in asia — this is how the markets are looking despite disappointing trade numbers from china — we'll be live to singapore for the latest.
pilots for one of the world's largest airlines, british airways, have gone on strike today for the first time ever, after rejecting a pay offerfrom the airline. the two—day strike follows failed negotiations between the union and the airline over a pay offer of 11.5% over three years. british airways rejected a last—ditch proposalfrom pilots' union balpa to restart negotiations aimed at averting strike action. unite and gmb, representing cabin crew and engineers, have accepted the pay dealr but pilots say the pay award should be higher, following recent years of low increases and ba's recent strong financial performance. last year iag, the airlines parent company, reported a full year operating profit of $3.6 billion, a 9.5% rise on what the company made
in 2017. ba aren't the only airline in a standoff with pilots, last week ryanair pilots voted for seven further days of strike action this month as part of a row over pay and conditions. ryanair said the strikes are "pointless". john strickland, director ofjls consulting joins me now. no doubt about it, this is going to be very damaging for british airways today and tomorrow. how likely is it, do you think that we might see some resolution soon?” it, do you think that we might see some resolution soon? i think there are can be in agreement, even though they are striking about pay, they could be some soft issues in their which could be addressed with some sensible talking around a table. we are settling in the next few days, the straps are going to happen and disrupt the customers was not who do you think will blink first? it's very difficult to tell. there only a
tally amount of the between them and ba, they're saying is much higher in terms of what the pilots are saying, they of course have to look at as you said, the rest of the workforce has accepted this and you also mentioned that part of the iag group, ba is not a standalone company. iag is a company which has a group which has several companies within it. they have to compete for resources , within it. they have to compete for resources, any hint that ba submits cost and doesn't deliver financial returns which it sat, those resources could be taken away at management has to keep its eye on that fact. isis management has to keep its eye on that fact. is is significant though, that fact. is is significant though, that pilots are british airways have not taken strike action before and yet, this time there saying no. enough is enough, you're earning quite a lot more money in terms of your property is a company and we should be rewarded for that. your property is a company and we should be rewarded for thatm your property is a company and we should be rewarded for that. it is significant because looking back in some ways thinking this is payback time was not we did help out ten yea rs time was not we did help out ten years ago, i remember myself that she asked all its working groups bought it because permanent change was not islets made a sacrifice or
the company tells me half the parts employed today was not there at the time the sacrifices were made to stop and look at the substantial raft ability in their eyes today, although the figure runs into billions, we have to remember they could face headwinds, anything in the market can happen and damage the performance, they got a massive expenditure audible, they need those profits. so how damaging will this be, do you think for iag? because the cost of the strike today and there's more strike action scheduled for two was the end of the month if there is no agreement this week. and ba has a legal duty, doesn't it? to find alternative routes for passengers which might be with competitors. exactly. the only winners are the competitors. customers suffer, they're going to be angry, somewhat threaten and indeed not fly with british airways again. the direct cost of lost reve nu es over again. the direct cost of lost revenues over £40 million a day. that gives the urgency to solve this. when we move into the medium
term, this resolution, i would expect this to come back, there have been a series of pallets rugs which went on three and a half years until 2017. that is something we would have to have — my crib is in the mind of the union and get this thing resolved quickly so the company can get back on track for its customers and maintain its strong performance which is to the good of this workforce as well as travellers. john, thank you very much indeed. we will give a very close eye on how the talks, when they do start again, continue between british airways was not over the weekend china released its latest trade figures. they were generally expected to show a fall, partly in response to the trade war with the us — but did they? let's go to our asia business hub where rico hizon is following the story. like i say, nice to see you. happy monday. as i said we are expecting bad news but it was worse, wasn't
it? more than expected. exports from china to the us fell by 16% from the previous year and that's a much sharper decline than what we saw in july with exports fell by six .5%. that help the cause of china with exports to europe, south korea, australia and southeast asia also worsened on an annual basis compared with july. this worsened on an annual basis compared withjuly. this led china's overall exports to four by a 4% in august. as for chinese imports, from the us, they also fell by over 50. what could make matters worse is that washington announced 50% tariffs on a wide range of chinese goods from the first of september. so there is concern right now that the man that is infora concern right now that the man that is in for a shop economic slowdown. china is expected to announce more support measures to stabilise the economy and last friday, the country ‘s central bank said it was cutting the amount of cash that ang sold as
reservist both monetary and fiscal initiatives to pump up the economy. it has wobbled markets admit, story today. now let's brief you on some other business stories. commuters in tokyo are facing major disruptions this morning after a powerful typhoon hit the region with winds and rain. typhoon faxai, packing winds of up to 134 miles an hour, made landfalljust east of the capital before dawn. that triggered evacuation warnings, widespread blackouts and transport disruption. nissan's chief executive has signalled that he is ready to pass on his role to the next generation. hiroto saikawa's comments came in response to reports that he may resign imminently. the troubled japanese carmaker‘s board is due to meet later today. mr saikawa has come under increasing pressure after it was revealed that he had been overpaid and as the company's
profits have plunged. now let's talk about cars. consumers around the world are trading in their old petrol vehicles for new ones that run on batteries. but not everyone's convinced that electric is the future. in brazil, almost 90% of new cars are flex fuel — meaning they run on either petrol or sugarcane—based ethanol. daniel gallas sent this report from sao paulo. priscilla produces almost half of the world ‘s sugar. but much of the vast sugarcane crop isn't even turned into sugar. it is made into biofuel. brazil has the world ‘s largest amount of flux fuels which means a command petrol and ethanol. for yea rs means a command petrol and ethanol. for years the industry thought biofuels with the best way to reduce
greenhouse gas emissions but now the world seems to be going electric. leaving brazil at a crossroads. biofuel produces and, because have enjoyed huge benefits in the past two ethanol the preferred choice. also with the help of subsidies, over 90% of the fleet here is flex fuel. if consumers were to suddenly change all of that in favour of electric cars, then this entire industry would be at risk. toyota has just launched what it says is the world ‘s cleanest hybrid car. it can run on electricity, ethanol and gasoline stop we need to look at the opportunities that the world gives us. and match our best technology with the best of the local resources . with the best of the local resources. in brazil, still has a very developed ethanol reduction base which is self sustainable and renewable so we can use non— fossil
fuels, electrify its usage to improve the performance and the efficiency of the system. the biofuel industry is keen to avoid being sidelined in the rush to electric vehicles. it consists they are not necessarily the future of transport. when i see an electric vehicle, with batteries, i have to ask from where is that the electricity coming from? if the illiteracy comes from coke, you have the worst problem vehicles with fossil fuels. drivers want their ca rs fossil fuels. drivers want their cars to be environmentally friendly. here in brazil there is plenty of debate about the best road to take. that's it for the business briefing this hour —
around a million people have attended an open—air mass in madagascar, celebrated by pope francis on the final day of his visit there. he called for the protection of the environment, and against privilege and elitism in society. our religion editor, martin bashir sent this report from madagascar. braving blustery conditions on the outskirts of the capital, antananarivo, crowds were overflowing for an open—air mass. quoting from the gospel of luke, pope francis said christ demands respect for both people and the planet — an urgent message for this part of the world.
translation: this demand encourages us not to dilute and narrow the gospel message, but instead to build history in fraternity and solidarity, in complete respect for the earth and its gifts, as opposed to any form of exploitation. across the landscape of this country, the world's fourth—largest island, 40% of its forest has disappeared in the last 60 years. the environmental danger is aggravated because 80% of madagascar‘s plant and animal species are not found anywhere else on the planet. this visit has come at a moment of rapid growth for the catholic church in africa. the pope's trip to africa was intended as a pastoral visit to encourage the growing churches here. but it quickly became political, with his condemnation of the plundering of natural resources.
and, for the thousands who came out to greet him, they encountered a pope who is as much a conservationist as he is a christian. coming up at 6:00 on breakfast the team will have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: borisjohnson is set to ask parliament to approve a snap election which he hopes would give him a fresh mandate on brexit. the head of a us aid agency says hurricane dorian has left parts of the bahamas looking like they were hit by a ‘nuclear bomb'. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the daily telegraph and like many of the front pages it is considering borisjohnson's next move after mps and lords
approved a bill to extend the brexit deadline and avoid a no—deal brexit. the daily telegraph reports the prime minister plans to legally "sabotage" the extension. boris johnson's visit to ireland today is the focus of the financial times' lead story. the paper says ireland's prime minis leo varadkar, has warned mrjohnson not to expect a "breakthrough" and said the eu does not agree that talks are making progress. the south china morning post carries this warning — from qihoo a chinese internet security company known for its antivirus software — that with technological advances there will be more risks, making cyber security a key growth area in the future. they would say that, wouldn't they? now onto the guardian which reports that leading gps have called on the government to make mmr vaccinations compulsory before children start school. and finally the bbc online,
reporting from the toronto film festival, asks have we become too cynical? actor tom hanks says the increasing level of cynicism in society is partly what led him to take a role as a loveable children's entertainer in the film ‘a beautiful day in the neighbourhood'. with me is eileen burbidge, a partner at passion capital — a technology venture fund based in london. let's get started. the telegraph says that borisjohnson can legally stop brexit extension, that is their headline. given the fact that he contributes regularly to the paper, you would probably read this article and wonder. given what has happened over the weekend speaking to the media saying yes, understood the parliament has passed a bill that will probably be made into law today