Browse content similar to 11/07/2016. Check below for episodes and series from the same categories and more!
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Giving reassurance over the 'special relationship' -the UK's finance | :00:00. | :00:22. | |
Minister flies to the US for Brexit talks Live from London, | :00:23. | :00:25. | |
that's our top story on Monday the 11th of July. | :00:26. | :00:33. | |
George Osborne heads to New York to tell American investors that | :00:34. | :00:42. | |
Britain leaving the European Union is an opportunity and not a worry. | :00:43. | :00:44. | |
Also in the programme, Aaron's in Farnborough. | :00:45. | :00:51. | |
It is the Farnborough International airshow, one of the most important | :00:52. | :00:59. | |
aviation events. Despite the care of optimism among big industry chiefs | :01:00. | :01:05. | |
gathering, there are some headwinds facing the passenger jet business. I | :01:06. | :01:11. | |
have the boss of bowling joining us live very shortly. | :01:12. | :01:14. | |
We are 30 minutes in in London and there are more | :01:15. | :01:23. | |
And we'll also be hearing from the head of Boeing, | :01:24. | :01:29. | |
one of the world's largest global aircraft manufacturers on everything | :01:30. | :01:37. | |
So today we want to know when it comes | :01:38. | :01:41. | |
to travelling by air what is most important to you? | :01:42. | :01:43. | |
Bigger seats, more leg room, or is just about security? | :01:44. | :01:45. | |
The British Finance Minister is today flying to New York | :01:46. | :02:09. | |
for talks with major investors in an effort to strengthen trade | :02:10. | :02:14. | |
links between the US and the UK after the vote to leave | :02:15. | :02:17. | |
In a piece for the Wall Street Journal George Osborne said that | :02:18. | :02:25. | |
improving ties with the US is now a "top priority". | :02:26. | :02:38. | |
The two countries are each other's largest investors, | :02:39. | :02:40. | |
with almost $1 trillion dollars invested in each other's economies. | :02:41. | :02:52. | |
In fact the US invests 10 times more in the UK than it does in China | :02:53. | :02:56. | |
while the UK invests 50 times more in the US than China does. | :02:57. | :02:59. | |
Additionally a million people in the US work for British companies | :03:00. | :03:02. | |
with the same number working for American firms in the UK. | :03:03. | :03:05. | |
Andrew Walker is a BBC economics correspondent. | :03:06. | :03:07. | |
Andrew, we are hearing about the numbers involved from Sally there. | :03:08. | :03:16. | |
told we would be at the back of the queue for US- UK trade deals. | :03:17. | :03:23. | |
that by President Obama, but you have to bear in mind that he is not | :03:24. | :03:28. | |
the person managing the queue, as it were, it will be his successor. | :03:29. | :03:30. | |
There is no question that for the US, the economic relationship | :03:31. | :03:42. | |
with the EU will be a higher priority. It is a bigger economy | :03:43. | :03:47. | |
than the UK. Having said that, the UK is no minnow. Because of the | :03:48. | :03:54. | |
investment relationship in particular, it will be a big deal. | :03:55. | :03:58. | |
The UK, bearing in mind that the United States the biggest single | :03:59. | :03:59. | |
export market, clearly, it is a very important relationship. | :04:00. | :04:13. | |
For the US, important. Maybe China and the rest of the EU are bigger, | :04:14. | :04:17. | |
but not one to be ignored. In terms of deals that are currently | :04:18. | :04:19. | |
in place. We have this massive deal going on | :04:20. | :04:22. | |
between the US and Europe, TTIP. What does this mean for that, do you | :04:23. | :04:33. | |
think? It means that Britain is ultimately | :04:34. | :04:35. | |
not going to be a partner to that deal as it stands. | :04:36. | :04:41. | |
Therein mind that we shouldn't assume | :04:42. | :04:44. | |
that -- bear in mind that we shouldn't assume that that | :04:45. | :04:48. | |
deal is nailed down. It has a long way to go and it is controversial, | :04:49. | :04:55. | |
particularly on the European side. There are some provisions that are | :04:56. | :04:58. | |
absolutely loathed by political absolutely loathed by political | :04:59. | :05:03. | |
forces in Germany and here. Some people see it as a threat to the | :05:04. | :05:06. | |
National Health Service. Some are concerned about provisions for | :05:07. | :05:13. | |
companies to sue governments. The other point that campaigners for the | :05:14. | :05:17. | |
Leave vote would make is that it is a lot easier to negotiate for one | :05:18. | :05:20. | |
country than it is coordinate the negotiating positions | :05:21. | :05:28. | |
of 28 members of the EU. The future, I think, for TTIP is | :05:29. | :05:30. | |
deeply uncertain, but it will clearly be on Mr Osborne's mind | :05:31. | :05:36. | |
while he is in the United States. Thank you, Andrew. | :05:37. | :05:43. | |
Eurozone finance ministers will today meet in Brussels | :05:44. | :05:45. | |
to discuss the state of the bloc's economies. | :05:46. | :05:47. | |
High on the agenda will be whether or not to impose fines | :05:48. | :05:50. | |
on Spain and Portugal for breaching the Eurozone's Stability | :05:51. | :05:53. | |
Both countries have been running large budget deficits | :05:54. | :05:58. | |
which exceed the agreed limit of 3 percent of GDP. | :05:59. | :06:13. | |
Deutsche Boerse says it's considering lowering the approval | :06:14. | :06:15. | |
threshold for its proposed merger with the London Stock | :06:16. | :06:17. | |
The German exchange is concerned that the threshold could be hard | :06:18. | :06:20. | |
to reach with the current structure of its voting shareholders. | :06:21. | :06:23. | |
If the deal goes through, the tie-up will create the world's | :06:24. | :06:25. | |
The outlook for the global economy remains grim despite it having | :06:26. | :06:29. | |
overcome the impact of the 2008 financial crisis. | :06:30. | :06:32. | |
That's the verdict of the world's 20 largest economies who have | :06:33. | :06:35. | |
been meeting in Shanghai for a G20 summit. | :06:36. | :06:37. | |
In June the World Bank cut its forecast for the global | :06:38. | :07:04. | |
economy in 2016 from 2.9 percent to 2.4 percent. | :07:05. | :07:06. | |
Let's take a look round the world at what's business stories | :07:07. | :07:09. | |
First, the success of a new Pokemon app is good news for Japanese | :07:10. | :07:13. | |
gaming company Nintendo - who's shares are soaring. | :07:14. | :07:15. | |
Ashleigh Nghiem has been following the story. | :07:16. | :07:20. | |
Some argue about -- arguing about the value of these things and say it | :07:21. | :07:28. | |
is hard to gauge the value of companies that are not making | :07:29. | :07:32. | |
profits. Big profits expected for airline | :07:33. | :07:33. | |
manufacturers. The Farnborough airshow is the | :07:34. | :07:45. | |
biggest international show of its kind, I think. | :07:46. | :07:47. | |
Let's look at some other stories. Among the big winners on the markets | :07:48. | :07:52. | |
today, Japan are doing well. First, the success of a new Pokemon | :07:53. | :08:06. | |
app is good news for Japanese gaming company Nintendo - | :08:07. | :08:09. | |
who's shares are soaring. Ashleigh Nghiem has been | :08:10. | :08:11. | |
following the story. Nintendo shares have surged 25% | :08:12. | :08:22. | |
today. Since its debut last Friday, Pokemon Go has added $7 billion to | :08:23. | :08:26. | |
the company's market value in just two days. What is the fuss about? | :08:27. | :08:31. | |
The game is a clash between reality and fantasy. It gets people to move | :08:32. | :08:39. | |
around their neighbourhoods to catch virtual Pokemon characters using | :08:40. | :08:44. | |
their smartphones. Nintendo was late to move into mobile gaming, but at | :08:45. | :08:51. | |
least one analyst has said that Pokemon Go would need to bring in | :08:52. | :08:56. | |
more than $150 million each month to have any meaningful impact on the | :08:57. | :09:00. | |
firm's profits. That is a pretty high number. Good | :09:01. | :09:06. | |
to see you, Ashley. Look at the close in Tokyo - up almost 4%, a | :09:07. | :09:13. | |
really good performance despite the fact that the yen is still extremely | :09:14. | :09:17. | |
strong in relation to the dollar. Hong Kong followed suit. US payroll | :09:18. | :09:23. | |
figures came through better than expected, which boosted trade in | :09:24. | :09:37. | |
Asia. Japan's president got a majority in the upper chamber, which | :09:38. | :09:40. | |
would allow him to push through some reforms. You can see gains are | :09:41. | :09:46. | |
particularly strong in Germany and France. We will talk some more about | :09:47. | :09:52. | |
the trading day in a moment, first, here is some era in New York to talk | :09:53. | :10:00. | |
us through what to expect. -- Samira. Markets are hoping for a | :10:01. | :10:13. | |
lift this week. The economy had 287,000 new jobs in the month of | :10:14. | :10:17. | |
June. Demand is likely to pick up, good news for an economy that | :10:18. | :10:22. | |
depends on consumer spending. Numbers on consumer prices, | :10:23. | :10:25. | |
industrial production and consumer sentiment will also be released and | :10:26. | :10:29. | |
could add more good cheer for investors. In earnings news, JP | :10:30. | :10:35. | |
Morgan Chase will kick-off the US bank earnings season, whilst Fargo | :10:36. | :10:38. | |
will announce results. Joning us is Maike Currie, | :10:39. | :10:48. | |
investment director Quite a lot going on, but such a | :10:49. | :10:57. | |
positive note to start the week across the board. Yes, and it is | :10:58. | :11:03. | |
thanks to Friday's US job figures. Asian markets have risen | :11:04. | :11:09. | |
significantly. Not as strong a week as we expected, though. The Nintendo | :11:10. | :11:15. | |
news, it highlights the importance of tech. It is a core part of the | :11:16. | :11:21. | |
Japanese market. The question it raises is the credibility of | :11:22. | :11:25. | |
negative interest rates. The bank of Japan has moved into that negative | :11:26. | :11:31. | |
territory, but still its currency is very strong. Looking ahead, there | :11:32. | :11:36. | |
are various things going on in the US. We had the payroll numbers on | :11:37. | :11:41. | |
Friday, which was positive. The previous month, it was that nasty | :11:42. | :11:46. | |
surprise, not many jobs added to the economy. Give us your thoughts on | :11:47. | :11:53. | |
where we are rat. There is a lot of negative news about the UK | :11:54. | :11:55. | |
referendum and the negative impact of that. -- where we are at. I don't | :11:56. | :12:05. | |
think we will see the US raising interest rates in July, probably not | :12:06. | :12:10. | |
in September, but perhaps in December, which means it will be a | :12:11. | :12:14. | |
full year since the last rate rise. Thank you for joining us. We will go | :12:15. | :12:20. | |
through the papers shortly. Aaron is at Farnborough. | :12:21. | :12:28. | |
Yes, it is one of the most important aviation events on the planet. Think | :12:29. | :12:35. | |
big, think huge business, hundreds of billions of dollars of deals | :12:36. | :12:39. | |
taking place here on the grounds of this airport. This year, there are | :12:40. | :12:44. | |
some headwinds facing the industry. I have the big boss of bowling, he | :12:45. | :12:48. | |
is standing in the wings, and he will join us live very shortly. | :12:49. | :12:59. | |
Britain has enjoyed a generally strong economic recovery, but not | :13:00. | :13:04. | |
all parts of the country are feeling the benefits. Then Thomson is in | :13:05. | :13:11. | |
Skegness. He has been talked -- Ben Thomson. He has been talking to | :13:12. | :13:18. | |
local businesses about boosting the economy in seaside towns. It is | :13:19. | :13:21. | |
gloriously and quiet, but the problem is about how to get people | :13:22. | :13:31. | |
here for the for the rest of the year. It is about getting more | :13:32. | :13:38. | |
people coming here, more people working here and crucially, getting | :13:39. | :13:42. | |
more people spending here. Craig Leyland is with me this morning. We | :13:43. | :13:46. | |
look around and it is a glorious morning - you would wonder why | :13:47. | :13:50. | |
people wouldn't want to come, but it is not always like this, and the | :13:51. | :13:56. | |
challenge is to get people here all year round, how do you do it? We | :13:57. | :14:02. | |
have about half ?1 billion a year of a tourist economy. It is about how | :14:03. | :14:06. | |
we maintain that and make it an all year round economy. We are seeing | :14:07. | :14:10. | |
inward investment from local businesses, and we are looking to | :14:11. | :14:14. | |
attract outside business. We have a premier in planned, subject to | :14:15. | :14:18. | |
planning permission, which will raise the profile. It is about | :14:19. | :14:25. | |
getting infrastructure in place. It is cheaper for people to go overseas | :14:26. | :14:30. | |
in many cases, but it is about investment in roads, railways. | :14:31. | :14:36. | |
People are sane you can't get a meal after 6pm in some towns, and you | :14:37. | :14:41. | |
can't get a train after 8pm to get home. We need to sort out that | :14:42. | :14:46. | |
stuff. That's right. Those criticisms are well founded. I | :14:47. | :14:52. | |
attended the British hospitality Association conference two weeks | :14:53. | :14:55. | |
ago, where all these issues were raised. This is about making | :14:56. | :15:02. | |
recommendations happen. We have to look at infrastructure. Rail | :15:03. | :15:07. | |
infrastructure is another issue. Getting people here is critical. We | :15:08. | :15:12. | |
have blue flag beaches here, they are a fantastic attraction all year | :15:13. | :15:18. | |
round. We're cleaning them first thing in the morning. We have lots | :15:19. | :15:25. | |
to offer. That is Ben, who is talking to politicians and leaders | :15:26. | :15:29. | |
there. Aaron is at Farnborough. We are forever you could want us to | :15:30. | :15:35. | |
be. -- we are wherever you could want us to be. | :15:36. | :15:47. | |
This is Business Live. George Osborne is picking up the special | :15:48. | :15:55. | |
relationship, going to the US for post-Brexit talks. All of the | :15:56. | :15:59. | |
markets are in healthy shape, making gains at the start of Monday. | :16:00. | :16:03. | |
And now let's get the inside track on the world of aviation. | :16:04. | :16:12. | |
The Farnborough International Airshow is under way. | :16:13. | :16:15. | |
It is a huge event that takes place every year. | :16:16. | :16:22. | |
Again we can expect deals worth tens of billions of dollars to be done. | :16:23. | :16:25. | |
All the biggest players in the industry are there along | :16:26. | :16:28. | |
of course with our very own Aaron Heslehurst | :16:29. | :16:30. | |
Where are you? I am here! As you keep saying, I am at Farnborough | :16:31. | :16:40. | |
Airshow! Lug around! It is certainly one of the most important aviation | :16:41. | :16:46. | |
events of the year. For the lay people, when we think of | :16:47. | :16:49. | |
Farnborough, we think of the wonderful displays, the weapons of | :16:50. | :16:54. | |
war, commercial aircraft doing their thing in the sky. Sometimes we | :16:55. | :16:57. | |
forget that behind the scenes there are chalets and bungalows and | :16:58. | :17:01. | |
pavilions behind the airport where big deals are being made. Every two | :17:02. | :17:10. | |
years, this airshow, the last one, over $200 billion of aircraft orders | :17:11. | :17:16. | |
placed. This year, some are saying perhaps not as big in terms of that | :17:17. | :17:20. | |
number in terms of orders because of headwinds facing the industry. Let's | :17:21. | :17:25. | |
find out. We have one of the biggest aeroplane makers in the world | :17:26. | :17:29. | |
without, Boeing, and I am joined by the CEO, the President, he is | :17:30. | :17:36. | |
everything. Dennis, welcome to Business Live. Boeing is 100 years | :17:37. | :17:40. | |
old and you look pretty good for your age. Not bad for 100 years! We | :17:41. | :17:45. | |
are a great company and we will celebrate the centennial this | :17:46. | :17:51. | |
Friday. Let's talk about Turkey. You had a cracking year in 2014 at | :17:52. | :17:56. | |
Farnborough. Even last year, some great borders, a lot of aeroplanes | :17:57. | :18:03. | |
on the order books. How is business given the global economic climate? | :18:04. | :18:08. | |
Generally strong. We have 750 commercial aircraft in backlog. Our | :18:09. | :18:13. | |
orders are about 121 this year. We have tough economic situations | :18:14. | :18:17. | |
around the world but we still sees strong passenger growth overall. | :18:18. | :18:23. | |
Some airlines are hesitant, going forward, about the current climate. | :18:24. | :18:29. | |
They are delaying their orders. Have you seen that? We continued to see | :18:30. | :18:35. | |
strong orders in the narrow bodies, small aircraft, worldwide. Some | :18:36. | :18:40. | |
hesitancy in the wide bodies, which is where we see market demand and | :18:41. | :18:44. | |
economic uncertainty. Over the next 20 years, we still see global market | :18:45. | :18:51. | |
demand for 99,000 new aircraft. Wow. Despite Chinese pick-ups? -- | :18:52. | :19:05. | |
hiccups? We still see passenger growth in China at 15 to 30%. Back | :19:06. | :19:11. | |
to the narrow bodies, short to mid range. The Boeing 737 Max is your | :19:12. | :19:19. | |
competition to the Airbus 320. A little birdie has told me it has | :19:20. | :19:25. | |
been outselling yours. Not really. We launched the Max about one year | :19:26. | :19:30. | |
after Airbus, and since then it has been about 50-50 market share. We | :19:31. | :19:37. | |
have sold more than 200 maxes and we will be flying it at Farnborough for | :19:38. | :19:44. | |
the first time. Some may not know this, but UK aerospace industry is | :19:45. | :19:47. | |
the second-largest in the world the United States. It employs 130,000 | :19:48. | :19:53. | |
people and contributes billions of dollars to the economy. I guess that | :19:54. | :19:58. | |
will be highlighted today. You are going to meet the Prime Minister, | :19:59. | :20:01. | |
David Cameron, and he is going to put pen to paper on a new deal. We | :20:02. | :20:06. | |
are excited about our growth in the UK. It is our third biggest Boeing | :20:07. | :20:11. | |
operation globally. Great supply chain, great technology, great | :20:12. | :20:15. | |
talent, and we will be announcing additional growth and investment as | :20:16. | :20:19. | |
part of our prosperity initiative to Drake, including great news about | :20:20. | :20:27. | |
the PA. That is a naval aircraft. And the Prime Minister will be | :20:28. | :20:33. | |
signing an update, or a deal on updating the Apache helicopters. You | :20:34. | :20:40. | |
started as an intern at Boeing 30 years ago. This has got to be an | :20:41. | :20:45. | |
American success story. I started as an engineering intern in Seattle 30 | :20:46. | :20:49. | |
years ago and it is an extraordinary privilege to lead the company today. | :20:50. | :20:53. | |
And think about what the world has done in terms of changing in the | :20:54. | :20:56. | |
last century and what aircraft has done. Walking on the to walking on | :20:57. | :21:05. | |
the moon, from riding horses to flying aircraft. To have the | :21:06. | :21:08. | |
privilege to lead this company at our centennial is a privilege. The | :21:09. | :21:13. | |
future is even greater. It is phenomenal. Where this industry has | :21:14. | :21:19. | |
gone and where your company has gone in 100 years. You wonder what next? | :21:20. | :21:25. | |
How do you go beyond the Dreamliner? Composite material and high-tech | :21:26. | :21:31. | |
technology. Aeroplanes have been the same for lots of years, fuse a | :21:32. | :21:36. | |
large, wings and a tail. We are looking at commercial aeroplanes to | :21:37. | :21:41. | |
make them safer, more efficient and environmentally friendly. We are | :21:42. | :21:44. | |
looking at higher speed transportation, so maybe a future | :21:45. | :21:47. | |
where supersonic aircraft can get you anywhere in the world in an hour | :21:48. | :21:52. | |
or two. We are now building the first rocket to take the first human | :21:53. | :21:57. | |
to Mars. That is not going to be me! Dennis, we appreciate it and thank | :21:58. | :21:59. | |
you for joining on Business Live. The | :22:00. | :22:16. | |
Chinese are here in a very big way. For the first time they have their | :22:17. | :22:18. | |
own national pavilion and the Chinese are saying they are open for | :22:19. | :22:21. | |
business. The Chinese say they are ready to compete with the big guys. | :22:22. | :22:23. | |
Plenty more from Farnborough Airshow throughout the day. See you soon. | :22:24. | :22:26. | |
Thank you. He will be there all week, so we will hear from him. You | :22:27. | :22:30. | |
could hear the engines or the world's largest hairdryer behind | :22:31. | :22:36. | |
him! We asked you to get in touch with your thoughts on the most | :22:37. | :22:39. | |
important thing when it comes to air travel. Viewers have said that he is | :22:40. | :22:45. | |
like a boy in a candy store. You have also been tweeting us about | :22:46. | :22:50. | |
that question that what is most important to you. James says troops | :22:51. | :22:55. | |
service that does not feel economically calculated or | :22:56. | :22:57. | |
artificial. Attention to fine detail when I am flying. Johann said price | :22:58. | :23:04. | |
and legroom in particular. Boeing aircraft are more legroom than ever. | :23:05. | :23:09. | |
Let us know if you are watching from Airbus. Either they have something | :23:10. | :23:13. | |
to say. And this one, security and security, nothing precedes it. Maike | :23:14. | :23:19. | |
Currie is with us in the studio. You are from South Africa and you do | :23:20. | :23:23. | |
that flight all the time so what is important to you? It is a long | :23:24. | :23:29. | |
flight, 12 hours. Comfort, service and the in-flight entertainment | :23:30. | :23:33. | |
system needs to work. That is a good point. I did a 16 hour flight from | :23:34. | :23:37. | |
Sydney to Dubai and the entertainment system was broken in | :23:38. | :23:41. | |
the seat and I only had the channel that gives you the food of the | :23:42. | :23:47. | |
interview with the chief executive! When I go on a flight with my | :23:48. | :23:50. | |
family, three little boys, my challenge is getting to the end of | :23:51. | :23:52. | |
the flight without drinks down my front. If I can get to the other end | :23:53. | :23:56. | |
clean, I have achieved something. And that is not me spilling! The | :23:57. | :24:04. | |
children! I am not clumsy. Other stories in the papers now. Theresa | :24:05. | :24:09. | |
May, one of two women vying for the new leadership role of the | :24:10. | :24:11. | |
Conservative Party and therefore new Prime Minister of the UK. She is on | :24:12. | :24:16. | |
a corporate crackdown on the front page of the Financial Times. Very | :24:17. | :24:22. | |
interesting. Theresa May is framing herself as a one nation leader. If | :24:23. | :24:26. | |
there is anything that the European Union referendum revealed, this is a | :24:27. | :24:31. | |
divided nation. She is looking at the corporate system in particular | :24:32. | :24:34. | |
to build on the policies introduced by David Cameron, such as cracking | :24:35. | :24:38. | |
down on non-Dom is paying tax, the buy to let crackdown and just a | :24:39. | :24:46. | |
fairer system. Moving towards the centre ground, which some say is a | :24:47. | :24:50. | |
risky strategy, because she needs the support of the older right-wing | :24:51. | :24:54. | |
Conservatives. It'll be interesting to see how it out. In the article, | :24:55. | :25:01. | |
she is talking about making the annual shareholder vote on corporate | :25:02. | :25:04. | |
pay not just advisory bookbinding, so that is a lot power. We saw BP in | :25:05. | :25:10. | |
the headlines this year because of the unhappiness about chief | :25:11. | :25:14. | |
executive pay. Leadership change in the UK and in Japan it is the status | :25:15. | :25:20. | |
quote with Shinzo Abe getting the majority he needed in the upper | :25:21. | :25:24. | |
house in elections on Sunday. Does this mean more stimulus? Markets are | :25:25. | :25:30. | |
betting on that but will he do that? He needs to because there is an | :25:31. | :25:34. | |
expectation that he needs to do more. It is an interesting election. | :25:35. | :25:39. | |
The younger vote came through. They dropped the age from 20 to 18, so | :25:40. | :25:45. | |
lots more younger voters voted. There is a question over whether the | :25:46. | :25:51. | |
voters are backing Shinzo Abe or whether they are disillusioned with | :25:52. | :25:55. | |
the opposition. Thank you for coming in to go through the newspapers. And | :25:56. | :26:00. | |
thank you for your company. There is much more from Farnborough later on | :26:01. | :26:05. | |
the BBC. Stay with us and have a good day. Goodbye. | :26:06. | :26:08. |