10/08/2016 BBC Business Live

This is Business Live from BBC News with Sally Bundock

A leading think tank says the UK should remain part

of the European single market, but is this a step too far

Live from London, that's our top story on Wednesday

Leaving Europe's single market could cost the UK 4%

But can negotiators keep Britain in the trading bloc,

while balancing demands to control freedom of movement?

And a third day of disruption for Delta passengers in the US.

We look at how a technical glitch can cause transport chaos.

Traders have hit the pause button in Europe with the main market falling

slightly, we will explain why. And imagine making 10,000 cakes

for dignitaries and celebrities. We'll be meeting the founder

of a London company Facebook cracks down

on software which blocks It is jam-packed and we will have

jam in the cakes, I am sure. Do get in touch and let's know your views

on the advertisement blocking on Facebook.

A new report is suggesting the UK could achieve significantly stronger

economic growth if it found a way to stay

Although Britain has taken the decision to leave

the 28-country political union, some experts believe it may

be possible for the UK to remain part of the EU's

Research by the Institute for Fiscal Studies says that over

the medium to longer term, Britain's GDP could be

4% higher if it stayed within the single market.

The IFS believes there's a huge difference between "full membership"

It argues "membership" reduces non-tariff barriers

like customs checks, in a way that narrower

But remaining in the trading bloc is looking increasingly difficult.

Last month, British Prime Minister Theresa May pledged to deliver

'some' control on the free movement of people.

But of course, this could risk breaching one of the key pillars

But some people around the world, that is probably as clear as mud! We

will explain. David Thomas, Executive Chairman

of the Council of British Chambers Great to have you in the studio. Can

we start for the uninitiated, if they are watching, they know the UK

has chosen to leave the European Union and now there is talk of

staying in the single market, can you explain the single market and

what it means, the benefits? The single market is part of the

European Union, part of the concept of the whole thing. It is the

economic part of it. And you cannot remove economic from politics. What

it does is allow businesses anywhere the EU to freely trade with one

another without any barriers. And additional, if you like, controls

like having to get another licence. It is a movement of goods, the

movement of money and the movements of people, which I guess some would

people. Still in uncharted territory people. Still in uncharted territory

so just wondering, the UK can leave, it is leaving the European Union.

Does it need to stay in the single market? Are they write about this

for percent? I think the calculations are probably exactly

correct. There is no reason to doubt the work the IFS has done, there is

a big impact in leaving the single market. The issue is, from a

negotiating point of view for the British government, how do you

manage to maintain the maximum amount of the single market that you

possibly can? And the fundamental point is that the financial sector

in the rest of Europe just cannot manage to finance a European --

European business, it is too small. And most of Europe's business is

being financed in London anyway. So Europe, there is this talk about the

UK missing out, Europe cannot afford not to be doing with the UK,

especially London and its financial services? That is what business

people understand, the issue is whether politicians understand it

and whether the political desire to force a win from one side or the

other is going to mess up the business side. And this is why we

are very, very strong in our view that we need to bring European

business into the game, if you want. You need to look... They are natural

allies of the UK economy. And to get them to explain to their politicians

how important it is to allow them to utilise the European... Sorry, the

UK finance market to the maximum without barriers. So they need to be

lobbying? Yes. And we have the network across Europe to provide

that interface with European business and that is what we want.

Good luck with that. We appreciate your time, David Tomas.

Some Eurostar rail workers will take seven days of strike

action in August over antisocial working hours.

Train mangers will walk out on the 12th

August and there's another strike planned for the Bank Holiday

Eurostar says it has made small changes to its timetable on strike

days. The BBC understands that the UK's

largest car factory could suffer from a lack of investment

as soon next year. The Nissan site in Sunderland

will bid for production contracts BBC sources say that there

are question marks over Sunderland's ability to compete while the UK's

trading relationship We want your tweets about the

Facebook story, remember. The social networking giant Facebook

has announced changes that The company said it will alter

the way content is loaded onto its website to make adverts

considerably more About 200 million people worldwide

currently use ad-blocking Walt Disney has reported

better-than-expected quarterly results following the popularity

of films such as Finding Dory The entertainment giant reported

a 9% rise in revenue, with profits rising to $2.6bn over

the three-month period. Disney also said it had

bought a $1 billion stake in the video streaming

company BAMTech. I have never heard of that, have

you? No, only today.

# Just keep swimming... That is the song from binding dory. I took my

younger son and I think I enjoyed it more than him.

-- finding. I know about John dory! With french fries!

Let's take a look round the world at what's business stories

The energy giant aeon has made a loss because it wrote down the value

of a loss-making power plant. The firm said that it is having to meet

all sorts of obligations. So a ?3 billion Euro loss. Not good news

from E.On. Shall we move on? I keep losing sound! Plenty of news around

the business markets. UK oil giant BP is planning to sell

one of its biggest Chinese investments near Shanghai, in a deal

that could bring in $2-$3 billion. Sharanjit Leyl is in

Singapore for us. Tell us more about the latest

announcements from BP. Yes, they are trying to sell off this Chinese

petrochemicals joint venture, their largest invention -- venture in

China. It was a joint-venture between BP and estate owned

business. BP is trying to cut off its 50% stake and they hope to fetch

as much as 2 billion, $3 billion. This is not the only company looking

to cut its investments in China. A lot of places relink and a lot of

people saying China's slow liberalisation of its energy sector

has disappointed investors. If BP sell it, they will not have made

that much after investing ten years ago. It was built at a cost of ?2.7

billion and a successful deal marks the company's first successful exit

from a business in China. They have sold off $50 billion worth of assets

into the Gulf of Mexico spill, paying clean-up costs and legal

bills. Thank you so much from Singapore. Some BP taking action to

boost its bottom line. And the energy companies have been losing

ground on markets around the world, the oil price has fallen yet again.

Not the best of days in Asia. But we have had a four Day rally in Asia.

Japan hit an almost one-year high yesterday. So profit-taking going

on. Let's look at Europe, a similar story. Let's not forget Germany

yesterday closing at 2.5% higher. Down a touch today, nothing very

dramatic. The losers are the energy companies with energy going down and

a much weaker dollar which doesn't help companies around the world. We

will talk more about that in a moment.

And the details about what's ahead on Wall Street today.

Wednesday will be about Wendy's, the fast-food burger chain which will

report its earnings. The results come at a time of a slowdown in the

fast-food industry. So investors will be eager to know how much of an

impact the slowdown will have on its forecast, especially given rivals

like McDonald's have given cuts to their outlooks for future quarters.

We will hear from the luxury hand back maker Michael chorus. The

company said it would offer more discounts to clear infantry at

department stores and make changes to distribution and regain market

share. But luxury retailers have been under pressure. Britain's vote

to leave the EU and China's economic slowdown have rattled economic --

International shoppers and increased online competition and a petition

from counterfeiters is hitting luxury retail industry.

Lauren, it is great to see you. It is August, quiet on the markets. But

interesting, a number of things going on. The dollar has stepped

because investors are thinking America's Central Bank is not going

to be optimistic about rate rises. They said two rate rises this year.

But the Asian markets are doing pretty good. Yes, we have got a

pause in the US and Europe, partly around holiday season and partly

because when there are not many people around, the economic data

does not get pulled over as much as it does and Asia is following on the

momentum from the US and Europe over the last weeks. It is an interesting

time, the classic Summer market situation.

Also, there is this thought in the market it will be quite a while

before we see rates going up in the US and we have a much weaker dollar

affecting markets like Japan. Yes, and there is often the theory the

Federal Reserve in the States does not like to raise rates close to a

US election. So November is the election. So we are ten, 12 weeks

away from that. And the data is fine. They are cracking numbers,

jobs numbers last Friday. And there is still concern about the fallout

of white macro to the US, they do not talk about it as much as they

did previously but it is still on their minds as it is in the UK --

Brexit. We will discuss the papers later on, you will take us through

those. We'll be meeting a woman who's

made cakes for thousands of dignitaries and celebrities -

including Madonna, David Beckham You're with Business

Live from BBC News. In the last hour, the RMT union has

announced that its members working on the Eurostar will take seven days

of strike action this month. The union says it's

over work-life balance. I was just wondering if the floor

manager was going to make a sleek appearance?

It's the third dispute to break out on the railways,

with RMT members on Southern Railway on strike this week over

The union has also announced a vote for action on Virgin Trains

Simon Calder is Travel Editor of the Independent.

Always good to see you. Lots of travel disruption this summer?

Indeed. I have been speaking to the general secretary of the RMT union,

which has called the strike on Eurostar, he says that we are

frankly fed up and the fact that Southern Rail is on strike, in the

middle of that, the East coast Virgin Trains staff have voted to

strike and we now have a strike coming up on Friday, Saturday,

Sunday, Monday and the last weekend of August, that is because the

employers are simply not being fair. Let us look at the dispute, it was

back to an agreement in 2008 over what the worklife balance should be

and train staff on Eurostar which runs trains from London St Pancras

to Paris and Brussels as well as Marseille and Disneyland, they have

to work anti-social shifts, often staying abroad, which might sound

like the greatest fun but it probably gets weary after a few

years and they say that Eurostar are not respecting that. I have been

trying to find out what Eurostar will propose for passengers and I

have been unable to speak to anyone but what we think will happen is

Eurostar will put a policy in place in the next hour or so saying if you

are booked for travel you can postponed and perhaps get a refund

and they will also say they hope to run the majority of trains. They

have Belgian and French staff as well as British ones who are

striking. Thank you so much for joining us. That is a very latest on

that story. If you're planning to travel through Eurostar,

please do check! The order of pepper pig is rejecting the ITV offer, more

news on that on the website. -- Peppa Pig.

You're watching Business Live - our top story...

Using the single -- leaving the single market could cost us 4% of

the GDP. But can negotiators keep us in the trading bloc whilst balancing

the bands to control freedom of movement. Let us look at the

markets. Traders heading the pause button on the recent rally, slight

declines and nothing to be too concerned about. Heading towards the

middle of August so many people are away. They are in the Riviera! That

would be nice! 17 years ago the Little Venice Cake

Company was founded here in London. Now it's gone global with franchises

in the US and the Middle East. The woman behind the business

is Mich Turner, and she's created more than 10,000 cakes

for dignitaries and celebrities like Queen Elizabeth II,

Madonna and David Beckham. Pierce Brosnan called her

the Michelangelo of cakes. She originally trained as a food

scientist and has been a consultant And as if that wasn't enough,

she's also an author She has all sorts of other products,

including... What don't you do? The idea is about giving people the

opportunity to have their cake and eat it! Mich is here! Thank you for

these wonderful cakes. How did we become this global company? Do you

just love making cakes at home? When I was very young but I qualified as

a food scientist and I worked for Harvey Nichols in the bakery and

patisserie whilst fuelling my love for cakes but it is very much from a

scientific point of view. I understand what is happening and use

that technology and biochemistry to produce amazing cakes and

breathtaking beauty. How do you leap from that idea to making cakes for

the Queen? That does not happen overnight and it comes the huge

amount of dedication and knowing where you want to be and taking

steps to reach that. There has to be connection. It is about making sure

you have a fantastic product and we always strive to have that complete,

bespoke detail, hand craftsmanship with indulgent cakes so everything

stands shoulder to shoulder in terms of the experience, whether you are

learning, teaching, writing books, decorating, everything has to stand

up to the quality but it is by word of mouth and London is a fantastic

centre to fuel that because we have so much in the way of banqueting and

hotels, which fuelled my career. Expansion. The US, Middle East. I

wonder, do people in the Middle East, these are real? Yes! Do they

like the same stuff? The franchise is in Kuwait servicing the Middle

East and what they particularly like his to really sweet cakes, but added

salted caramel and the more pottery and speed the better but they like

them very small. Not let the Americans, it tends to be the

bigger, the better. In Kuwait, it is dainty and delicate. What is it like

doing business as a woman? That is how I felt. The market in Kuwait is

very much about buying and selling and trading franchises so you will

see British, American and French franchises in Kuwait, the ladies are

liberal, they were beautiful clothes and drive and shop and they love to

have sweet treats. When they have Mother's Day, they will buy for each

other's mothers and sisters and cousins and the girls shop together

and the wedding is over there are phenomenal. Our first wedding cake

in Kuwait was over eight feet tall and weighed over 200 kilos. How do

you manage the quality with people making cakes for you? A bad one can

ruin the reputation? The training we have in Kuwait, we have a kitchen

that is part of the franchising network, we have eight full-time

staff members and we train them twice a year and we conduct lots of

consultations through Skype. And a lot of videos coming to and from

them. What are you looking for in the cake maker? And attention to

detail, that flawless attention to detail. Quality, refinement,

understanding technology and putting together a really fundamentally

great cake, beautifully decorated. Can I ask the price? What will that

set you back? In this country about ?1500. In Kuwait, it can go up to

around ?60,000. The most expensive one I made was ?24,000. My goodness!

For the president of Nigeria! How do you price a cake? Says is the big

thing and the amount of intricacy and work that goes into it and the

attention. I have a lot of books. You are very global! These are all

from different languages. Different countries. You are all over the

world! Great to have you on the programme, Mich. You've had a lot of

sugar this morning! Know I haven't! I will read, he is eating.

Here's how to keep in touch. There will be up moments, you did the

conviction of knowing what you are doing. My second piece of advice is

to ask for help because it is extraordinary how generous people

are and how much they seek to the beginning. And don't be shy. Try to

get as much help as you can, meeting people. And the third piece of

advice is on focus. Really committing to what you are trying to

do and retaining as much focus as possible. Because as with most

industries and professions and ideas and thinks, focus is everything.

That clearly was not how to keep in touch! That was Lily Cole, who was

sharing... It was better! Top tips on running a business. Take us

through some of the new stories in the papers. That suspension

Facebook. Do you use it? No. -- letters mention Facebook. Facebook

has been the great driver of ads popping up on social media, great

technology stopped that popping up and across other platforms, and now,

of course, the ad-blocker has come up with a blocker for the

ad-blocker. Facebook cannot afford to lose that revenue. If you pay for

that software and enjoy life without adverts, you will be annoyed? You

will be hacked off by your experience on Facebook. Absolutely.

But it comes down, at the end of the day, we often talk about this,

nothing is ever for free? You have to pay for this somehow. If you want

Facebook for free, they have to make some money. And the more important

point is, with newspaper websites, good journalism has to be paid for.

And a lot of that is through advertising. We have one minute, let

us talk about the story involving Delta, the computer glitch shutting

down 809 aeroplanes, and that has happened, Southwest Airlines had a

similar problem three weeks before. And United Airlines. What is ironic

is the latest one was designed to stop a power brick affecting the

system. So the power brick did not stop the power brick. You follow the

airline industry closely, you will be aware of this, suddenly people

rely on things like tablets for directions, for maps, it shows you

just how vulnerable the whole thing is. Always a pleasure. There are

some cake! For many of us find a on the way.

But there is some rain on the forecast is of places like Belfast

and West of Scotland and some of his worst areas, it will cloud over and

at the very least there are some spots of rain on the way. Let's look

at the South, Wednesday afternoon and across the South West and Wales,

cloudy with rain before Southern counties, the South and East Anglia

it will stay dry through the course of the afternoon. Not bad from

Norwich to hold but these westerly areas run the Irish Sea and Northern

Ireland and western Scotland, overcast. And temperatures only

around 14 or 15 degrees. The rain will turn heavy over the next few

days across western parts of Scotland. This coming night,

rainfall mostly across northern and eastern areas, the South staying dry

from London, Portsmouth, into Plymouth and wherever you are

tonight it will be mild compared to the last couple of nights. Thursday,

high pressure in charge for the south-west but weather fronts in the

North so it will be raining from Scotland to parts of northern

England, possibly into East Anglia as well with thicker cloud before

the Sutherland south-western areas, we anticipate plenty of bright

weather and even sunshine. Temperatures getting up to 22 in

London, further north it is still relatively fresh at around 15 or 16.

We mention the rainfall across northern and western Scotland, there

could be a lot of rainfall across these upland areas, 16, -- 62 around

100 millimetres and that is persistent, it keeps coming in.

Whereas to this South it is different. You can see the Midlands

and East Anglia, if anything, turning even sunnier and warming up

with this air coming up. And things are set to warm up further as we go

through Saturday and into Sunday. You can initially be a fair amount

of cloud around and spots of rain but we will be heading the mid-20s,

particularly across southern areas and Sunday look similar. Sunshine in

the forecast for the weekend but rain also, particularly for northern

areas but for much of the country it is going to stay dry.