Browse content similar to 27/10/2016. Check below for episodes and series from the same categories and more!
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the wire, the EU battles to save its the wire, the EU battles to save its | :00:12. | :00:17. | |
free-trade deal with Canada, but the clock is ticking. That's our top | :00:18. | :00:22. | |
story today, Thursday the 27th of October. | :00:23. | :00:39. | |
Canada's Prime Minister was due in Brussels to sign the deals but says | :00:40. | :00:44. | |
he will not be leaving after work without an agreement. So with this | :00:45. | :00:49. | |
deal at a standstill, what can the UK helped to broker when it starts | :00:50. | :00:53. | |
to negotiate with the European Union. Samsung smartphone sales | :00:54. | :00:58. | |
plummet after the exploding phone debacle. We will have the latest | :00:59. | :01:02. | |
from our team in Asia. In Europe, the markets have started | :01:03. | :01:07. | |
headed down but the winner in Germany is Deutsche Bank, after its | :01:08. | :01:12. | |
surprise news it made some money. Selling peace of mind, why 24 | :01:13. | :01:18. | |
million customers across Africa, Asia and Latin America rely on one | :01:19. | :01:21. | |
firm that offers insurance to safeguard their future. And, it is | :01:22. | :01:25. | |
all done on a mobile phone. As the electric car maker Tesla | :01:26. | :01:33. | |
reports profit for the time, would you convert to an electric vehicle? | :01:34. | :01:47. | |
A warm welcome to the programme. It is jam-packed with stories. We will | :01:48. | :01:57. | |
start in Brussels where we have talked about the fact that Justin | :01:58. | :02:01. | |
Trudeau, the Prime Minister of Canada, was due to be in Brussels to | :02:02. | :02:06. | |
sign a major free-trade deal with the European Union today. The | :02:07. | :02:11. | |
reality is, as of last night, the deal is still blocked by regional | :02:12. | :02:14. | |
parliament in Belgian. Talks to break the deadlock are underway | :02:15. | :02:19. | |
right now. It is embarrassing for the EU, which has been struggling to | :02:20. | :02:24. | |
show unity and restore its credibility after Britain's Brexit | :02:25. | :02:31. | |
vote. What is at stake? The comprehensive economic and trade | :02:32. | :02:36. | |
agreement aims to eliminate 98% of trade barriers between Canada and | :02:37. | :02:41. | |
the EU. That could save EU exporters more than half $1 billion every | :02:42. | :02:47. | |
year. Supporters say it will cause an increase in trade by 20% and | :02:48. | :02:52. | |
would especially help small businesses. What is the other side | :02:53. | :02:55. | |
of the argument? Critics say it would give too much power to big | :02:56. | :03:01. | |
business and they point out EU regulation on things like product | :03:02. | :03:04. | |
safety could be dire looted and multinationals will be able to sue | :03:05. | :03:07. | |
governments if they don't get their own way. It has taken seven years to | :03:08. | :03:14. | |
get to this point and 27 of 28 EU governments want to go ahead and | :03:15. | :03:18. | |
sign the agreement, but Belgian cannot back the deal because three | :03:19. | :03:22. | |
regional parliaments in the French-speaking part of the country | :03:23. | :03:27. | |
are blocking it. There is wide implications. The row demonstrates | :03:28. | :03:33. | |
how hard it may be for the UK to do a post Brexit trade deal with the | :03:34. | :03:41. | |
EU. Late Wednesday, Canada's Trade Minister could hardly hide her | :03:42. | :03:49. | |
frustration. Today, 27.5 member states of Europe to support this | :03:50. | :03:53. | |
deal. As we have said on many occasions and I am happy to repeat, | :03:54. | :03:58. | |
this is an excellent agreement. It is an agreement that, as the Prime | :03:59. | :04:03. | |
Minister has just said, we made significantly more progressive since | :04:04. | :04:09. | |
he came into office. I am going to disappoint the journalists, I am not | :04:10. | :04:13. | |
at this time going to deal in hypotheticals. As of this moment, | :04:14. | :04:19. | |
the summit remains on your's agender and on Canada's agenda. If there is | :04:20. | :04:25. | |
a deal to sign tomorrow, Canada will be there. But the ball today is in | :04:26. | :04:28. | |
Europe's courts. Allie Renison is the Head | :04:29. | :04:32. | |
of Europe Trade policy Let's go back to basics, what is it | :04:33. | :04:45. | |
the regional parliaments in Belgian is opposed to? On the face of it, | :04:46. | :04:50. | |
they have issues with provisions around investments, so the ability | :04:51. | :04:57. | |
for investors to sue government for forfeiture of property. It has | :04:58. | :05:01. | |
become a big issue for Europe's public. Also imports of beef. Do you | :05:02. | :05:08. | |
think we will get to the point where we will see this deal signed in the | :05:09. | :05:13. | |
near future? One of the reasons people are being catastrophic about | :05:14. | :05:17. | |
this, there was an artificial deadline set by the EU and Canada. | :05:18. | :05:23. | |
It will probably take more time to work out some issues. But eventually | :05:24. | :05:28. | |
it will probably be signed, probably not today. Away from the specific | :05:29. | :05:33. | |
situation on the ground in Belgian, is it the feel that it is an | :05:34. | :05:42. | |
anti-global movements? When you look at the amount of trade, the | :05:43. | :05:53. | |
population of Belgian that does trade with Canada is under 1%. I | :05:54. | :06:01. | |
think the Premier of the region which is effectively holding up this | :06:02. | :06:06. | |
deal is being seen as the champion against globalisation. It is | :06:07. | :06:10. | |
embarrassing, this situation as far as the EU is concerned with Justin | :06:11. | :06:14. | |
Trudeau waiting in the wings to come to Brussels to sign it. What does it | :06:15. | :06:20. | |
mean for the trans-Atlantic to an investment partnership and the UK | :06:21. | :06:24. | |
looking to broker its own trade agreement? Canada deal is being seen | :06:25. | :06:29. | |
as a dry test run. It is a more contentious issue and one of the | :06:30. | :06:35. | |
reasons is when the negotiations started, you had the spying scandal | :06:36. | :06:43. | |
that the NSA and Germany. That means it will be difficult for this to be | :06:44. | :06:46. | |
completed. Europe will be learning lessons quickly by making sure this | :06:47. | :06:50. | |
embarrassment doesn't happen again and we don't get to the situation | :06:51. | :06:55. | |
where you have one country's vote holding up deals. When it comes to | :06:56. | :06:59. | |
the Brexit deal, there are moving parts the UK and the EU will have to | :07:00. | :07:05. | |
deal with, but trade globalisation deals are contentious and the Brexit | :07:06. | :07:10. | |
deal will put up barriers. I think it will be more likely to see the | :07:11. | :07:18. | |
Brexit signed. Thank you for explaining that. We will follow that | :07:19. | :07:19. | |
story closely. Deutsche Bank has reported pre-tax | :07:20. | :07:25. | |
profit of 675m dollars in the third quarter, | :07:26. | :07:28. | |
despite analysts predicting a LOSS The company has increased how much | :07:29. | :07:36. | |
it's set aside to deal Deutsche is currently negotiating | :07:37. | :07:40. | |
with US authorities over a $14bn fine for alleged | :07:41. | :07:43. | |
wrongdoing in the lead up The Financial Times is reporting the | :07:44. | :07:57. | |
Bank of England has asked other institutions to declare what | :07:58. | :08:00. | |
exposure they have two the German Lander and some of Italy's largest | :08:01. | :08:05. | |
banks, the International Monetary front describe them as the riskiest | :08:06. | :08:07. | |
bank. Electric car maker Tesla has | :08:08. | :08:09. | |
reported profits of nearly $22 million for the third quarter - | :08:10. | :08:16. | |
compared to a loss of 230 million dollars | :08:17. | :08:19. | |
this time last year. That follows 13 loss-making | :08:20. | :08:21. | |
quarters in a row. Record car deliveries helped offset | :08:22. | :08:23. | |
rising expenses for next year's roll-out of the company's | :08:24. | :08:25. | |
mass-market Model 3 saloon car. Shares jumped around 4% | :08:26. | :08:28. | |
in after-hours trading. This may not come as a huge | :08:29. | :08:39. | |
surprise, but it's a huge The tech giant saw its profits | :08:40. | :08:42. | |
all but wiped out by the Galaxy Note Not a huge surprise but it shows the | :08:43. | :09:01. | |
scale of this problem for Samsung? Correct, operating profits fell, but | :09:02. | :09:11. | |
the operating profit plunged by 96%. This is due to the Galaxy note seven | :09:12. | :09:19. | |
fiasco. Samsung has said it has written $5 billion in recall | :09:20. | :09:21. | |
expenses because of what happened. But some analysts aren't so sure the | :09:22. | :09:29. | |
entire cast of the scandal has been accounted for. Samsung hasn't | :09:30. | :09:32. | |
announced what has caused the phone to catch fire. It is worth noting | :09:33. | :09:38. | |
Samsung's earnings would have been worse if they didn't have a | :09:39. | :09:43. | |
diversified business. They have a strong semiconductor and display | :09:44. | :09:46. | |
panels division which helped with profit numbers. But we are still | :09:47. | :09:49. | |
looking at the smartphone division, because that is where most of the | :09:50. | :09:54. | |
money comes in from. They are hoping the recent episode with the Note | :09:55. | :09:59. | |
seven will not scare buyers away. But analysts have said Samsung users | :10:00. | :10:03. | |
are loyal and given Samsung controls about a quarter of the market, it | :10:04. | :10:07. | |
will not be that easy to switch to other high-end smartphone providers. | :10:08. | :10:12. | |
So some sunk the big story out of Korea today. Apple, and other | :10:13. | :10:22. | |
companies have poor earnings. Let's look at Europe to see how the day is | :10:23. | :10:27. | |
faring. Deutsche Bank shares opening up 3%, Barclays Bank up 2% and bolts | :10:28. | :10:35. | |
wagon shares up by 4%. But overall, the markets are down. We will talk | :10:36. | :10:38. | |
through what is happening in Europe in a moment. | :10:39. | :10:40. | |
And Samira Hussain has the details about what's ahead | :10:41. | :10:42. | |
Twitter will be reporting earnings on Thursday. The company wasn't | :10:43. | :10:51. | |
meant to report until after markets close, but it has bowed to pressure | :10:52. | :10:56. | |
from analysts who want to hear from the company before market is for | :10:57. | :10:59. | |
trading. Twitter is struggling, not much use of growth and the company | :11:00. | :11:05. | |
was trying to sell itself. But the room is bidders have backed out. | :11:06. | :11:09. | |
Ford will also be reporting on earnings. The company is trying to | :11:10. | :11:13. | |
maintain their profit margins as many are expecting a slowdown in new | :11:14. | :11:18. | |
vehicle sales in the US. And finally, we will be hearing from the | :11:19. | :11:24. | |
online retail giant Amazon. With the holiday season just around the | :11:25. | :11:28. | |
corner, investors will want to know what the company is projecting for | :11:29. | :11:29. | |
the next three months. Joining us is Kathleen Brooks, | :11:30. | :11:38. | |
Research Director at City Index. Let's start with GDP, we have UK | :11:39. | :11:51. | |
figures today. Expected to be about .3, .4% which is down from the | :11:52. | :11:57. | |
second quarter of .7%. Slowdown of sorts, what does it mean to the Bank | :11:58. | :12:02. | |
of England? It is the first three months of growth post Brexit. We | :12:03. | :12:07. | |
have the inflation report from the Bank of England. This quarter of | :12:08. | :12:11. | |
growth doesn't mean much. It will be next year we will see the key | :12:12. | :12:16. | |
slowdown. The Bank of England has expected a massive slowdown in | :12:17. | :12:21. | |
growth. No .8% for next year is their latest forecast. If there is a | :12:22. | :12:25. | |
weaker number today that forecast could be cut. And next week is when | :12:26. | :12:30. | |
we could see the real impact on the markets. Deutsche Bank surprisingly | :12:31. | :12:35. | |
OK, Barclays Bank, these different results talking about how they are | :12:36. | :12:39. | |
doing in this economic environment? We have had bad political news and | :12:40. | :12:45. | |
economic worries. The market can get itself in tears. But with Deutsche | :12:46. | :12:50. | |
Bank, they have eked out a profit. But we don't know how much of a fine | :12:51. | :12:56. | |
there will have to pay. We don't know if they have whittled it down | :12:57. | :12:58. | |
further and that will be when their share price will take off. Or | :12:59. | :13:05. | |
otherwise, as the case may be. Earnings season has been OK. We have | :13:06. | :13:11. | |
had big losers, with apple being the key one. It is their first loss in | :13:12. | :13:15. | |
so many years, it cannot keep going up. Thank you so much, you will talk | :13:16. | :13:19. | |
this through some of the paper stories. | :13:20. | :13:21. | |
Still to come: Selling peace of mind. | :13:22. | :13:22. | |
Why one firm is offering insurance for people in developing countries | :13:23. | :13:25. | |
to safeguard their future if a family member dies. | :13:26. | :13:27. | |
You're with Business Live from BBC News. | :13:28. | :13:41. | |
And now a look at some of the stories from around the UK. | :13:42. | :13:44. | |
Two of britain's blue chip companies have reported their latest | :13:45. | :13:46. | |
Our Business Correspondent Andrew Walker joins us | :13:47. | :13:49. | |
Pre-tax profit up Barclays Bank was down. The chief executive is still | :13:50. | :14:04. | |
confident the restructuring he is leading is going ahead pretty much | :14:05. | :14:10. | |
as planned. It is an effort to focus the bank more on the UK and US | :14:11. | :14:15. | |
markets, pulling away from other parts of the world. The brief | :14:16. | :14:19. | |
history of Barclays Bank over the course of the financial crisis, the | :14:20. | :14:23. | |
share price gained strongly up until the end of 2006 and then plummeted, | :14:24. | :14:30. | |
as did so many. Recovered a bit, but is still bumping along at a | :14:31. | :14:34. | |
relatively low levels. The other striking thing in these figures was | :14:35. | :14:39. | |
the provision bank is made for compensation who have been mis-sold | :14:40. | :14:44. | |
payment protection insurance. The figure was ?600 million. Lloyds said | :14:45. | :14:48. | |
they were confident there would be any more large provisions required. | :14:49. | :14:55. | |
And the chief executive of Barclays Bank was saying something similar. | :14:56. | :14:59. | |
They think they have the reserves right for this issue. What about BT? | :15:00. | :15:06. | |
Their profits, depending on what figure, they are up by ?873 million. | :15:07. | :15:13. | |
Revenue up by 35% and that has a lot to do with the acquisition of the | :15:14. | :15:22. | |
mobile operator EE. Even if you take that out of the figures, revenue was | :15:23. | :15:26. | |
still going up. Also Openreach, the network that provides the wires and | :15:27. | :15:33. | |
the controversy. There is this argument about whether BT should | :15:34. | :15:37. | |
have to dispose of that operation, but the profits continue to roll in | :15:38. | :15:42. | |
nonetheless under executive described these as positive results. | :15:43. | :15:44. | |
Thank you, Andrew Walker. It is a busy morning, certainly. | :15:45. | :15:56. | |
Going to be live page, Debenhams is the story I wanted to show, | :15:57. | :16:04. | |
reporting a 10% drop in profit. Details on the website. The BBC | :16:05. | :16:08. | |
business live page. You're watching Business Live - | :16:09. | :16:14. | |
our top story: The Canadian Prime Minister has scrapped a planned trip | :16:15. | :16:18. | |
to Brussels today after the EU failed to agree a controversial free | :16:19. | :16:22. | |
trade deal with the country - over opposition from a Belgian | :16:23. | :16:25. | |
regional parliament. Belgium is trying to negotiate with | :16:26. | :16:34. | |
its regional parliaments over a few points they are not happy with. To | :16:35. | :16:36. | |
put it mildly. A quick look at how | :16:37. | :16:39. | |
markets are faring. The FTSE 100 is down at the moment, | :16:40. | :16:47. | |
but we get the third quarter GDP figures very shortly and that could | :16:48. | :16:49. | |
have an effect on the numbers. This And now let's get the inside track | :16:50. | :16:53. | |
on micro This insurance. It's a growing business around | :16:54. | :16:56. | |
the world that provides protection Micro insurance can be used | :16:57. | :16:58. | |
to safeguard against a wide range of events including the loss | :16:59. | :17:02. | |
of belongings, livestock One estimate by Swiss RE says | :17:03. | :17:04. | |
that the 4 billion people around the world could benefit from micro | :17:05. | :17:09. | |
insurance that means, for example, paying a small | :17:10. | :17:11. | |
premium of 60 cents a month on a rolling basis for accident | :17:12. | :17:15. | |
or life insurance. The potential payout from that | :17:16. | :17:17. | |
could be $1,000 dollars if the insured person | :17:18. | :17:22. | |
lost their life. It's often provided | :17:23. | :17:31. | |
through mobile phones rather BIMA is one company | :17:32. | :17:33. | |
that's leading the charge Mathilda Str m is the company's | :17:34. | :17:39. | |
Deputy CEO Head of it is? BIMA. It means in assurance | :17:40. | :17:56. | |
in Swahili and other languages -- insurance. That is pretty | :17:57. | :18:03. | |
interesting. We think it comes from Sanskrit. Going back to basics, we | :18:04. | :18:10. | |
have spoken about this being sold via mobile phones and we know many | :18:11. | :18:17. | |
banks and finance in Africa, places like that, it is done on mobile | :18:18. | :18:22. | |
phones. If we take it back to the average customer, they live under | :18:23. | :18:26. | |
$10 a day and they don't have a banking account, but they do carry a | :18:27. | :18:30. | |
phone. That phone doesn't have to be a smartphone, but they can still | :18:31. | :18:34. | |
register for an insurance policy and pay for it. They can register by | :18:35. | :18:40. | |
answering five simple questions, no paperwork, no health checks, and | :18:41. | :18:44. | |
they have an insurance policy. They can pay for it using their | :18:45. | :18:48. | |
pay-as-you-go credit, by deducting 2 cents a day we can allow them to get | :18:49. | :18:53. | |
access to insurance. How does this work on a practical level? For me to | :18:54. | :18:59. | |
take out insurance in the UK I have got to sign the paperwork and make | :19:00. | :19:02. | |
declarations and I might have to go for a medical. You have cut that | :19:03. | :19:08. | |
out. At the starting point only 2% of people in Alaba tips has | :19:09. | :19:12. | |
insurance and that means 98% of people are not insured -- 2% of | :19:13. | :19:18. | |
people in our markets have insurance. Here we have a great | :19:19. | :19:24. | |
variety. But we choose one risk rate for 90% of the people and we hedge | :19:25. | :19:29. | |
our risk across the mass-market. How'd you make it financially | :19:30. | :19:35. | |
viable? They are not paying much for the insurance, and they must be | :19:36. | :19:38. | |
fairly high-risk customers, when you haven't done a health check and they | :19:39. | :19:42. | |
are living in Africa or emerging markets where they might have | :19:43. | :19:47. | |
accidents and they might get on well or have something go wrong. It must | :19:48. | :19:53. | |
be quite high risk? You could say it is high risk, but the key thing for | :19:54. | :19:59. | |
making it successful is scale, and technology, mobile technology, that | :20:00. | :20:04. | |
helps it and it helps to eliminate costs and allows more people to | :20:05. | :20:08. | |
register, regarding risks, when it comes to insurance, we are paying | :20:09. | :20:15. | |
out about $1000 in claims, and that can have a salary of around 2-3 | :20:16. | :20:24. | |
years, but for us that is just $1000. Everyone can see the value of | :20:25. | :20:30. | |
insurance for goods and property, and then we get into life property | :20:31. | :20:34. | |
and livelihood and farming, that kind of stuff. That is the | :20:35. | :20:39. | |
livelihoods are many people in parts of Africa. How does that work? Why | :20:40. | :20:46. | |
is that so important? If we take an example of a woman who was paid a | :20:47. | :20:49. | |
claim in Pakistan last year, her husband passed away in a tragic | :20:50. | :20:54. | |
drive-by shooting in Islam a bad and she had four children and he was the | :20:55. | :21:00. | |
only breadwinner. She was paid out $3000 which effectively allowed her | :21:01. | :21:03. | |
to send her eldest son to graduate school and allowed at least two | :21:04. | :21:09. | |
years of salary placement which her husband would have had. If she | :21:10. | :21:14. | |
hasn't got a bank account, how'd you get the money to her? Effectively a | :21:15. | :21:20. | |
mobile bank account, we can send it straight to her. All sitting on her | :21:21. | :21:27. | |
phone? Yes. Very interesting. Best of luck with that project and thanks | :21:28. | :21:29. | |
for talking to us. Mathilda Str m is the company's | :21:30. | :21:32. | |
Deputy CEO Head of In a moment we'll take a look | :21:33. | :21:35. | |
through the Business Pages but first here's a quick reminder of how | :21:36. | :21:40. | |
to get in touch with us. The business live pages where you | :21:41. | :21:50. | |
can stay ahead with the breaking news, we keep you up-to-date with | :21:51. | :21:55. | |
the latest details, with insight and analysis from the BBC's team of | :21:56. | :22:00. | |
editors from around the world. We want to hear from you, as well. Get | :22:01. | :22:07. | |
involved. You can do this through twitter and Facebook. Business live | :22:08. | :22:15. | |
on TV and online whenever you need to know. Thank you for getting in | :22:16. | :22:22. | |
touch, we asked if you are ready to plug in, because Tesla it is | :22:23. | :22:29. | |
actually making profits for the first time. Fabrice Santoro he will | :22:30. | :22:37. | |
switch to an eco-friendly car -- says he will switch. He is | :22:38. | :22:42. | |
convinced. Jerome says he will buy an electric car and he says there is | :22:43. | :22:47. | |
no way to charge without a long extension. I don't agree with that, | :22:48. | :22:52. | |
I see charging points everywhere in London. You must live somewhere | :22:53. | :22:59. | |
quite fancy. I don't actually live in London. Another one says, | :23:00. | :23:04. | |
hopefully safety will be a priority. What other business | :23:05. | :23:11. | |
stories has the media been Kathleen Brooks is joining | :23:12. | :23:13. | |
us again to discuss. Going to the trade deal between | :23:14. | :23:20. | |
Europe and Canada, questions about what kind of relationship the UK | :23:21. | :23:27. | |
will have with Europe. Glaxo is in the spotlight, they say they will | :23:28. | :23:34. | |
get a bonus because Brexit is worth extra money to Glaxo, this is | :23:35. | :23:37. | |
because of the weak pound? Yes, this is a one-off bonus, otherwise the | :23:38. | :23:44. | |
pound would be worth nurturing a thing, and they have done quite well | :23:45. | :23:47. | |
and they don't seem to be worried about Brexit -- the pound would be | :23:48. | :23:54. | |
worth virtually nothing. There are challenges for them going forward, | :23:55. | :23:58. | |
the uncertainty around Brexit and our relationship with the EU is | :23:59. | :24:01. | |
going to affect the drug producers because they don't know things like | :24:02. | :24:05. | |
patents and being able to sell their drugs across the EU. That is a | :24:06. | :24:11. | |
massive market for them. There will be clarity about the law in terms of | :24:12. | :24:15. | |
regulation. In terms of drugs in Europe and the UK and how that | :24:16. | :24:22. | |
works. They need very particular skills, and it seems the outgoing | :24:23. | :24:25. | |
chief executive sounds quite positive that the deal will be | :24:26. | :24:28. | |
struck and that is quite interesting. In the markets we don't | :24:29. | :24:32. | |
know anything about Brexit, but when you get big bosses like this saying | :24:33. | :24:36. | |
we could fill the Labour shortage, that is positive. We have spoken | :24:37. | :24:42. | |
about the results for Apple, not great, considering the record | :24:43. | :24:45. | |
figures we normally see, but the wireless in bugs have been launched. | :24:46. | :24:55. | |
These might not be ready in time -- ear. They have this -- coming out, | :24:56. | :25:07. | |
and I think they have dismissed the idea of wires coming out, but they | :25:08. | :25:10. | |
will have an uphill battle to sell these things. Very bad timing, they | :25:11. | :25:17. | |
should be stealing the march with Samsung having a problem at the | :25:18. | :25:23. | |
moment. That is right. Strikes me as a rare miss for Apple. What about | :25:24. | :25:32. | |
this regarding craft beer? We are swimming in craft beer, it seems | :25:33. | :25:36. | |
like we have reached peak craft peer, but some of that might not be | :25:37. | :25:40. | |
as microbrewery as you think, because there has been a wave of | :25:41. | :25:43. | |
consolidation and buyouts, and you only have a few, brew dog says he | :25:44. | :25:49. | |
will not sell out, but many are. Catherine, thanks for joining us. | :25:50. | :25:52. | |
Good morning. Similar day ahead for most parts of the UK. We are based | :25:53. | :26:15. | |
in a | :26:16. | :26:18. |