Browse content similar to 21/10/2016. Check below for episodes and series from the same categories and more!
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compensate for the plummet in the value of the pound. We want to know | :00:00. | :00:00. | |
what we can do as consumers to fight those price | :00:00. | :00:14. | |
rises? A warm welcome to the programme. We start in Brussels, | :00:15. | :00:20. | |
where European leaders are meeting to try and save a free trade | :00:21. | :00:23. | |
agreement with Canada. The comprehensive economic and trade | :00:24. | :00:29. | |
agreement has put -- has caused a public backlash and is being blocked | :00:30. | :00:34. | |
by a Belgian regional Parliament. The row has called into question the | :00:35. | :00:38. | |
credibility of the EU when it comes to agreeing a major trade deals. A | :00:39. | :00:43. | |
far bigger deal, the Transatlantic Trade and Investment Partnership | :00:44. | :00:46. | |
partnership with the United States, has yet to be concluded. And there | :00:47. | :00:50. | |
is the issue of a future trade deal with the UK following Brexit. CITA | :00:51. | :00:57. | |
aims to eliminate 98% of tariffs between Canada and the EU and to | :00:58. | :01:02. | |
boost the economy is by billions of dollars, but critics say a treaty | :01:03. | :01:06. | |
will weaken European consumer rights. This is the problem, | :01:07. | :01:10. | |
Belgium's government supports the deal but it cannot be signed off | :01:11. | :01:15. | |
without the agreement of the country's regional parliaments as | :01:16. | :01:19. | |
well. The mostly French-speaking region of loonie voted against CITA | :01:20. | :01:25. | |
and last night refused to compromise despite new concessions. There are | :01:26. | :01:29. | |
wider implications, the row demonstrates how hard it will be to | :01:30. | :01:33. | |
do a post-Brexit trade deal with the UK, in the words of the EU's trade | :01:34. | :01:44. | |
Commissioner... A big story is the situation with | :01:45. | :01:52. | |
Petrobras, the state oil dried in Brazil were for two years, Petrobras | :01:53. | :01:58. | |
has been at the centre of one of the's biggest corruption scandals. | :01:59. | :02:03. | |
The new Chief Executive is the man now responsible for salvaging the | :02:04. | :02:08. | |
company, no small task, he is selling assets and striking | :02:09. | :02:11. | |
partnerships with foreign firms to bring in vital investments as Brazil | :02:12. | :02:16. | |
has some of the largest offshore oil reserves in the world. He told our | :02:17. | :02:20. | |
correspondent that in five years' time, Petrobras could be back to its | :02:21. | :02:25. | |
former glory. We have just announced a new | :02:26. | :02:30. | |
strategic plan, this is a plan for 2017 opted 2021. However, it was the | :02:31. | :02:37. | |
easiest part because the most important one is to deliver the | :02:38. | :02:41. | |
plan. I think that after this period, we will see the company back | :02:42. | :02:49. | |
to its best days. You'd think foreign companies are willing to | :02:50. | :02:53. | |
partner up with Petrobras? The company still has the image of | :02:54. | :02:56. | |
corruption it is trying to shake off and there is the question of very | :02:57. | :03:00. | |
high levels of debt and there is nothing to guarantee you will be | :03:01. | :03:03. | |
here after two years because a new President will be elected in 2018. | :03:04. | :03:09. | |
It is not a good idea to depend only on one person although I don't think | :03:10. | :03:14. | |
it is work done just by one person, it is worked on by a team, working | :03:15. | :03:19. | |
very hard to really see the company at the levels I mentioned before. So | :03:20. | :03:26. | |
this two years, your work is to improve the institution, the | :03:27. | :03:31. | |
organisation of the company. Can you give an example? Two years from now, | :03:32. | :03:35. | |
a completely new political group comes into power in Petrobras and | :03:36. | :03:40. | |
the company still runs with a state mindset, it appoints political | :03:41. | :03:45. | |
people to key positions, but that's not happen again in 2018? What is | :03:46. | :03:52. | |
important to know is we have changed a lot of internal rules related to | :03:53. | :03:57. | |
the decision-making process. For instance, in the past, during the | :03:58. | :04:00. | |
days in which the problems happened, you could take a very important | :04:01. | :04:06. | |
decision to buy or to hire or to sign a contract by just one person. | :04:07. | :04:10. | |
It is not possible any more. You need at least two Executive | :04:11. | :04:17. | |
directors signing of this contract, you need at least five different | :04:18. | :04:22. | |
committees assessing this operation. We do believe that these measures | :04:23. | :04:26. | |
will make it very difficult for anyone that would come in the future | :04:27. | :04:31. | |
to try to break up and do whatever they want. As it was in the past. | :04:32. | :04:39. | |
That was Pedro Parente speaking to the BBC in South America. | :04:40. | :04:44. | |
Other news now and a big breaking story today, British American | :04:45. | :04:48. | |
Tobacco which produces things like Rothmans and Dunhill cigarettes, has | :04:49. | :04:53. | |
made a merger of the two American company Reynolds that makes Camel | :04:54. | :04:57. | |
cigarettes, the biggest deal by a British company in recent years, | :04:58. | :05:04. | |
valuing get at over $47 billion. It already owns 42% of Reynolds and | :05:05. | :05:08. | |
this offer is for the remaining 58% it does not. Sorry huge deal. | :05:09. | :05:14. | |
Microsoft shares have gone up more than 6% to hit an all-time high | :05:15. | :05:18. | |
after it reported better earnings than expected. It has been boosted | :05:19. | :05:23. | |
by soaring sales from Cloud computing business as more companies | :05:24. | :05:27. | |
shift away from owning their own hardware and storing data in the | :05:28. | :05:30. | |
Cloud. Mobile telecom equipment maker | :05:31. | :05:36. | |
Ericsson says North American sales have declined in the third quarter, | :05:37. | :05:40. | |
highlighting the depth of the crisis it announced with its profit warning | :05:41. | :05:43. | |
last week. It said it would introduce further cost-cutting in a | :05:44. | :05:49. | |
deal with the weaker broadband market for its business as well. | :05:50. | :05:57. | |
I just want to bring you this story, you might remember the dam that | :05:58. | :06:02. | |
broke in Brazil, prosecutors in Brazil have charged 21 mining | :06:03. | :06:08. | |
executives over that dam bursting which killed 90 people and polluted | :06:09. | :06:13. | |
hundreds of kilometres of rivers. The men were charged with | :06:14. | :06:15. | |
manslaughter and other environmental crimes. This is some Arco Valley | :06:16. | :06:26. | |
Brazil, this was a huge scandal -- son Marko. It costs people, 90 | :06:27. | :06:31. | |
people, their lives, and it has caused huge amounts of consternation | :06:32. | :06:36. | |
for those mining companies, so huge story. | :06:37. | :06:38. | |
And you like this story! Yes, I was listening to this on the | :06:39. | :06:46. | |
way in, the suit company must brass, school promise taking off in the UK, | :06:47. | :06:51. | |
they have been shipped in for the United States -- from the United | :06:52. | :06:55. | |
States, and schools here, the rise of the Proms has boosted Moss Bros | :06:56. | :07:02. | |
because of people hiring suits and increasingly buying them. | :07:03. | :07:10. | |
Glee has a lot to answer for that! Let's talk about what is going on in | :07:11. | :07:17. | |
the Philippines, the President is in Beijing for talks on what he calls a | :07:18. | :07:24. | |
new commercial Alliance with China. Yesterday, he announced a separation | :07:25. | :07:28. | |
from the United States, the huge concern in Washington. The trade | :07:29. | :07:31. | |
Minister of the Philippines has been trying to minimise the damage caused | :07:32. | :07:36. | |
by the President, saying the company will maintain its economic ties with | :07:37. | :07:41. | |
the United States -- the country. Our correspondent is in Singapore. | :07:42. | :07:44. | |
Do you think there is support for the President's move to veer away | :07:45. | :07:50. | |
from the US and towards China? I think it has generated more raised | :07:51. | :07:55. | |
eyebrows than support because the Philippines and the US historically | :07:56. | :08:02. | |
have strong partnerships which has stretched more than seven decades. | :08:03. | :08:06. | |
The statements he made a mistake visits to China about time to say | :08:07. | :08:09. | |
goodbye to America, they were separating, has caused a bit of | :08:10. | :08:14. | |
shock in diplomatic circles. Rodrigo Duterte is known to be the Filipino | :08:15. | :08:19. | |
version of Donald Trump who is also known for his controversial remarks. | :08:20. | :08:24. | |
But this is quite a shock and we have has to see his top aides do | :08:25. | :08:31. | |
some damage control, the Finance Secretary, the trade Minister, | :08:32. | :08:35. | |
downplaying and contradicting his remarks, said the -- saying they | :08:36. | :08:38. | |
will not break ties with the US but will maintain their trade and | :08:39. | :08:42. | |
economic relationship. They are looking for stronger integration | :08:43. | :08:46. | |
with neighbours like China. Mr Duterte signed a $13.5 billion worth | :08:47. | :08:53. | |
of deals on state visits so he is forging strong integration with his | :08:54. | :08:56. | |
neighbour. From Singapore, thank you. | :08:57. | :09:04. | |
We have got the markets, the Asian markets were mostly lower on Friday, | :09:05. | :09:08. | |
partly because of the dollar climbing to a seven-month high | :09:09. | :09:12. | |
against a basket of currencies, dragging down the price of crude | :09:13. | :09:16. | |
oil. The Hong Kong market closed because of the approaching typhoon. | :09:17. | :09:22. | |
Let's check in with Europe and European markets, all of them higher | :09:23. | :09:28. | |
in early trading. The FTSE 100 climbing in London. One of the big | :09:29. | :09:33. | |
winners is British American Tobacco, that has gone up more than 2% in | :09:34. | :09:38. | |
share prices after a merger with Reynolds. Talking about all things | :09:39. | :09:42. | |
American, the details of what is ahead on Wall Street today. | :09:43. | :09:47. | |
The world's largest fast-food chain will report earnings on Friday. | :09:48. | :09:52. | |
McDonald's has been struggling as consumer tastes move away from fast | :09:53. | :09:56. | |
food in favour of healthier options. And lower food at home inflation is | :09:57. | :10:01. | |
hurting the golden arches as more diners stay away. Investors want to | :10:02. | :10:05. | |
hear an update from McDonald's on the company's turnaround campaign, | :10:06. | :10:10. | |
pricing and the impact of wages. Also reporting earnings on Friday, | :10:11. | :10:16. | |
General Electric. Adomah is feeling optimistic about its earnings this | :10:17. | :10:20. | |
quarter, saying it expects possibility in its flagship luxury | :10:21. | :10:23. | |
car division, and many will look to the results of industrial giant | :10:24. | :10:29. | |
General Electric. It is seen as a barometer for the overall economy. | :10:30. | :10:38. | |
Joining us now is the editor in chief of Investment Week and a | :10:39. | :10:42. | |
regular on the programme. Shares in both the UK's tobacco companies up, | :10:43. | :10:55. | |
claiming after this offer to buy out the rest of Reynolds, what does this | :10:56. | :10:58. | |
say about the state of the tobacco industry? It is ripe for | :10:59. | :11:04. | |
consolidation. When you see a mode of the site, you have two companies | :11:05. | :11:09. | |
with strong brands and they will get rid of weaker brands, and there is | :11:10. | :11:14. | |
difference in their geographic penetration. You talk about creating | :11:15. | :11:19. | |
a truly global tobacco business. Reynolds the second biggest tobacco | :11:20. | :11:27. | |
business in the US. But volumes of falling and we have a situation like | :11:28. | :11:31. | |
that, and we are getting tobacco companies squeezed by new regulation | :11:32. | :11:35. | |
including things like packaging and product placing where you have the | :11:36. | :11:39. | |
health warnings, this is not a great time to be in the tobacco industry, | :11:40. | :11:43. | |
some might say. Deals are cheap to do because interest rates remain | :11:44. | :11:48. | |
low. And again if you look at their sales geographically, there is still | :11:49. | :11:53. | |
growth in emerging markets, Latin America and parts of Asia, China, | :11:54. | :11:58. | |
those parts of the world. As you say in the US and Europe, we have been | :11:59. | :12:04. | |
on a 20 year decline in the appetite for smoking. It is more about the | :12:05. | :12:08. | |
long-term growth prospects in some of those other countries and shoring | :12:09. | :12:11. | |
up their revenues in developed markets. | :12:12. | :12:17. | |
This is something that was talked about, and appetite for mergers and | :12:18. | :12:21. | |
acquisitions, partly helped by a weak sterling. | :12:22. | :12:24. | |
And as I said, low interest rates. A lot of big deals going on because | :12:25. | :12:29. | |
companies think they have to do it now before they see this uptick in | :12:30. | :12:34. | |
interest rates in the early part of this year. There is $2.5 trillion | :12:35. | :12:42. | |
less worth of deals than in 2015 so it feels like that on more deals in | :12:43. | :12:49. | |
terms of deal-making, but lower in terms of value. One thing from BAT, | :12:50. | :12:53. | |
they ping is on the increase, which has taken off in Europe and they are | :12:54. | :13:00. | |
trying to expand this. It would make sense because it is taking the | :13:01. | :13:03. | |
appetite for cigarettes out of the market. These are big companies, | :13:04. | :13:08. | |
they are not stupid and they see the trend for vaping. They are moving | :13:09. | :13:12. | |
into that as well. We will leave it there, you are back to talk about | :13:13. | :13:17. | |
the papers and all things including the Kit Kat, we will try not to eat | :13:18. | :13:21. | |
this. It has survived so far into the | :13:22. | :13:23. | |
programme! See you later! Still to come, how | :13:24. | :13:29. | |
economic is editor is waiting in the wings, he is loitering! He will talk | :13:30. | :13:35. | |
about the foot -- fluctuating pound as China's consistent economic | :13:36. | :13:36. | |
growth. More than 5.5 million people | :13:37. | :13:46. | |
regularly log onto gambling websites. It is a ?4 billion market | :13:47. | :13:53. | |
would you believe. But now the Competition and Markets Authority is | :13:54. | :13:55. | |
investigating the sector, highlighting examples are | :13:56. | :13:58. | |
potentially unfair treatment of customers including firms misleading | :13:59. | :14:06. | |
promotions. The senior director for consumer enforcement joins us now. | :14:07. | :14:13. | |
Good morning. What are you doing this? Because we have had a number | :14:14. | :14:18. | |
of concerns, people tempted into promotions that look good on the | :14:19. | :14:22. | |
surface but they come attached with hidden and context terms which means | :14:23. | :14:25. | |
that people don't understand the deal they are getting into and we | :14:26. | :14:30. | |
think it makes it really hard for them to achieve any winnings and get | :14:31. | :14:34. | |
a pay-out. We are concerned that companies are exercising too much | :14:35. | :14:38. | |
tax at it over when they might give pay-outs and when they don't and we | :14:39. | :14:41. | |
are concerned that they are making it very difficult for people to | :14:42. | :14:47. | |
complain. A lot of problems in this sector. This is an industry that is | :14:48. | :14:52. | |
trying hard to change with the times and to come under new regulations. | :14:53. | :14:57. | |
Is it fair to be giving it such a hard time when they have so much | :14:58. | :15:01. | |
going on at the moment? We think it is critical that we look at this | :15:02. | :15:04. | |
sector and investigate it. The gambling commission came to us with | :15:05. | :15:08. | |
these concerns a couple of months ago, asking us to look at it because | :15:09. | :15:13. | |
5.5 million people are playing online. This is a growing market and | :15:14. | :15:18. | |
those people need to be treated fairly. They need the right | :15:19. | :15:20. | |
information to make the right choices and they need to know that | :15:21. | :15:25. | |
the odds are not stacked unfairly against them. It is really important | :15:26. | :15:31. | |
that we investigate this now. That is a really good pun if nothing | :15:32. | :15:35. | |
else! Thank you very much. You could also see on our web page, you can | :15:36. | :15:40. | |
see the response from the gambling industry. They say there is no | :15:41. | :15:43. | |
reason to believe there is widespread failings but they will | :15:44. | :15:48. | |
cooperate with the CMA. They say it would be wrong to prejudge the | :15:49. | :15:51. | |
outcome of an enquiry that has only just begun. There is also a story | :15:52. | :15:57. | |
about Homebase, the retailer Laura Ashley is to close its concessions | :15:58. | :16:02. | |
within the outlet after the takeover of it by an Australian company. The | :16:03. | :16:05. | |
company says most of the business in the concessions will shift to nearby | :16:06. | :16:10. | |
stores and websites. That is all on our website on the BBC website. | :16:11. | :16:19. | |
You are watching Business Live. A tiny region of Belgium plucks a | :16:20. | :16:30. | |
massive trade deal for reasons that Canada and the EU are finding to | :16:31. | :16:34. | |
understand -- hard to understand. You can go online and have a look at | :16:35. | :16:43. | |
the package about that. Will only is the place that has blocked this | :16:44. | :16:48. | |
massive trade deal. Plenty more on that story including a lot of | :16:49. | :16:52. | |
pictures of cows. And we don't know if the cows are involved in the | :16:53. | :16:56. | |
blocking, to be fair to them! Let's have a look at the market this | :16:57. | :16:57. | |
morning. Wigan have a quick look at the | :16:58. | :17:16. | |
economic week with a tale of 2-mac with very different economies. We | :17:17. | :17:24. | |
had the curious Case of China's income growth and the fluctuating | :17:25. | :17:29. | |
pound. Also the health of the coming after the vote to leave the EU. We | :17:30. | :17:33. | |
have also had the last of the presidential debate in the US | :17:34. | :17:36. | |
elections. Joining us is Kamal Ahmed. Let's start with the US. For | :17:37. | :17:44. | |
the first time it seems that we have had perhaps some comments about | :17:45. | :17:47. | |
policy. We also had an extraordinary comments from Trump about the job | :17:48. | :17:53. | |
report in America, saying it was anaemic and terrible and the country | :17:54. | :17:57. | |
was losing its businesses. Is that a fair assessment? The American | :17:58. | :18:03. | |
economy in comparison to other Western economies has actually been | :18:04. | :18:06. | |
performing relatively well. The mood in America, businesses and markets | :18:07. | :18:13. | |
are all looking at whether the head of the Federal Reserve will raise | :18:14. | :18:16. | |
rates by the end of the year will stop they have signalled a rate rise | :18:17. | :18:22. | |
many times but then not followed through. Inflation is still very | :18:23. | :18:29. | |
weak. There is no sign of any real inflationary pressure. The dollar is | :18:30. | :18:39. | |
Tambe strong for exports, not up people think -- too strong. It is | :18:40. | :18:44. | |
maybe not anaemic but not as positive as some may have expected | :18:45. | :18:48. | |
but in comparison to what is going on in Europe, America is in a better | :18:49. | :18:56. | |
position toward normalisation of monetary policy. European leaders | :18:57. | :19:03. | |
are trying to rescue this deal with Canada. There is a lot riding on it. | :19:04. | :19:07. | |
We have been talking about Canada plus as the model for the trade | :19:08. | :19:13. | |
deals but it is something they cannot do overnight. This is the | :19:14. | :19:17. | |
most important issue for the EU. We have had Mario Draghi, the head of | :19:18. | :19:22. | |
the European Central Bank, talking about asset purchases and how long | :19:23. | :19:26. | |
they will continue for but the real worry is this Canadian deal. Justin | :19:27. | :19:34. | |
Trudeau is due in Europe next week. This is to show that the EU is open | :19:35. | :19:37. | |
for business and that it can do deals but suddenly a small regional | :19:38. | :19:42. | |
parliament in Belgium that represents 3.5 million people says | :19:43. | :19:48. | |
it does not want to do it. That shows the difficulty. This is | :19:49. | :19:55. | |
overlaid with the American transatlantic trade and investment | :19:56. | :19:59. | |
partnership also not going ahead. Europe had a real challenge. If | :20:00. | :20:02. | |
these deals are seen as good for the EU economy but don't happen, the | :20:03. | :20:06. | |
argument is that the European economy is going to suffer. At the | :20:07. | :20:11. | |
time of low growth in Europe more than in America, it is a real issue. | :20:12. | :20:18. | |
Let's talk about China. Their GDP economic growth came in on target | :20:19. | :20:25. | |
yet again! But Beijing is seeking to cool its property sector and the | :20:26. | :20:28. | |
worries about corporate debt level are not going away and in fact have | :20:29. | :20:32. | |
been exacerbated by these figures. The big issue in China, as they make | :20:33. | :20:40. | |
this transition to a consumption led economy, can the Chinese authorities | :20:41. | :20:44. | |
keep the faith of the public in economic growth which has been very | :20:45. | :20:51. | |
strong in China for many years? And at times of stress, and at the | :20:52. | :20:54. | |
beginning of the year there were big worries about growth, the | :20:55. | :21:00. | |
authorities' response is to flood the market with credit, whether it | :21:01. | :21:07. | |
is business or consumer credit. And these have led to these incredible | :21:08. | :21:14. | |
numbers. $18 trillion of corporate debt in China, that is over 100% of | :21:15. | :21:19. | |
GDP. These are big worries because if there is a real slowdown in | :21:20. | :21:23. | |
China, that debt becomes unmanageable and it becomes a big | :21:24. | :21:28. | |
problem and their credit growth is far faster than their economic | :21:29. | :21:30. | |
growth and that always lead to tension. We can't let you go that | :21:31. | :21:35. | |
talking about inflation rising here in the UK and that seems to be | :21:36. | :21:42. | |
pushing through. There is not a lot of evidence yet that the weaker | :21:43. | :21:45. | |
sterling has sped through the prices because businesses are trying to | :21:46. | :21:50. | |
soak up the increased costs but consumers are negative about price | :21:51. | :21:53. | |
rises. We have seen this week the first increase in inflation posed | :21:54. | :22:02. | |
the referendum, and distilling drops, import prices for the UK, we | :22:03. | :22:07. | |
import a lot of energy and fuel and food that will become a problem -- | :22:08. | :22:13. | |
as sterling drops. As soon as inflation goes above wage inflation | :22:14. | :22:17. | |
there is a problem because people begin to feel worse off and that | :22:18. | :22:20. | |
becomes a political problem. Thank you very much. We'll take a look | :22:21. | :22:26. | |
through the business pages in a moment but first a reminder of how | :22:27. | :22:31. | |
to get in touch with us. The business life page is where you can | :22:32. | :22:33. | |
stay ahead of all the breaking news will stop we will keep you | :22:34. | :22:37. | |
up-to-date with all of the latest details with insight and analysis -- | :22:38. | :22:42. | |
business live. And we want to hear from you as well, get involved on | :22:43. | :22:45. | |
our web page. We are on Twitter macro and Facebook | :22:46. | :22:58. | |
as well. Business live on TV and online, whenever you need to know. | :22:59. | :23:03. | |
So what other stories have the media been taking an interest in? Lawrence | :23:04. | :23:11. | |
Gosling is back to talk to us about those. We have at a chocolate bar | :23:12. | :23:17. | |
sitting on the desk the whole programme! We were talking about | :23:18. | :23:21. | |
inflation and this is the practical effect. This goes back to the | :23:22. | :23:29. | |
Marmite story of last week. The boss of Nestl was saying they were | :23:30. | :23:33. | |
mulling over price rises of one of the iconic products in the market. | :23:34. | :23:39. | |
We are back to the weakness of sterling but also some of the core | :23:40. | :23:46. | |
commodities that go into eight chocolate bar like this, chocolate | :23:47. | :23:52. | |
cocoa, they have been going up. We were talking of air about how much | :23:53. | :23:56. | |
one costs, none of us quite remember! It cost me 65p in the | :23:57. | :24:03. | |
canteen upstairs! BDD go to a petrol station, you would pay more than | :24:04. | :24:09. | |
that. Some of these retailers are pushing through price rises almost | :24:10. | :24:17. | |
without us knowing it. Depending on the outlet that you buy from. The | :24:18. | :24:24. | |
one person says we can eat well for less. Lovely to hear from you, that | :24:25. | :24:28. | |
is it from us, thank you for watching. Goodbye. | :24:29. | :24:40. | |
Good morning, it is a slow start for many of us, quite a lot of low cloud | :24:41. | :24:47. | |
and patches of fog which at its most dent in the west of the UK can make | :24:48. | :24:52. | |
visibility up and | :24:53. | :24:53. |