Browse content similar to 30/06/2016. Check below for episodes and series from the same categories and more!
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Conservative MPs will declare their bids to replace David Cameron | :00:00. | :00:00. | |
as party leader and Prime Minister, while Labour's Jeremy Corbyn is set | :00:00. | :00:00. | |
to be challenged by a former member of his shadow cabinet, | :00:00. | :00:07. | |
Those are the latest headlines from BBC World News. | :00:08. | :00:10. | |
Now for the latest financial news with the World Business Report. | :00:11. | :00:13. | |
Global stocks continue to rally, the FTSE 100 is now higher | :00:14. | :00:27. | |
than before the referendum, as investors bet | :00:28. | :00:28. | |
Plus, goodbye EU, hello EEA, or AA, or WTO? | :00:29. | :00:32. | |
We talk you through the acronyms and look at Britain's options | :00:33. | :00:35. | |
Welcome to World Business Report, I'm Sally Bundock. | :00:36. | :00:47. | |
Also in the programme, we talk to the small business owner | :00:48. | :00:49. | |
who is making the most of the Brexit opportunities. | :00:50. | :00:58. | |
So it seems the initial panic on financial markets has not only | :00:59. | :01:01. | |
calmed down, but turned into optimism. | :01:02. | :01:02. | |
Global stock markets surging again on Wednesday, | :01:03. | :01:04. | |
with investors for now betting that some kind of compromise deal can be | :01:05. | :01:07. | |
done to keep Britain in the single European market. | :01:08. | :01:13. | |
The FTSE 100 index of leading shares closed at this, 6360.06. | :01:14. | :01:19. | |
That is its highest close since April, a bounce back | :01:20. | :01:30. | |
in multinational and commodity companies listed on this index have | :01:31. | :01:33. | |
But it is worth noting the more domestic-reliant FTSE 250 is also | :01:34. | :01:42. | |
powering ahead at a similar pace but is not yet back to where | :01:43. | :01:45. | |
And the relief rally has continued across the globe. | :01:46. | :01:57. | |
This is the scene is Asia at the moment, with the share | :01:58. | :02:00. | |
markets climbing for a third day. | :02:01. | :02:02. | |
The pound is also recovering strongly up against the US dollar | :02:03. | :02:05. | |
This is last night's close on Wall Street, | :02:06. | :02:12. | |
and oil hovering around $50 a barrel again. | :02:13. | :02:14. | |
C U. Still the optimism in Asia today? Absolutely. A good day for | :02:15. | :02:31. | |
Asian equity markets. The rally continues in Japan, Korea, Hong | :02:32. | :02:38. | |
Kong. All well entrenched in positive territory. Japan's stock | :02:39. | :02:43. | |
market is currently higher on hopes that Tokyo will release more | :02:44. | :02:49. | |
stimulus, which is a plus for the stock market. Local media is | :02:50. | :02:54. | |
reporting that Shinzo Abe is being urged to spend almost $200 billion. | :02:55. | :03:00. | |
There is also talk that the bank of Japan will push for another round of | :03:01. | :03:05. | |
easing. This talk has been around the market for quite sometime due to | :03:06. | :03:08. | |
the strength of the Japanese yen. Everyone is hoping that it will | :03:09. | :03:12. | |
materialise sooner rather than later. Of course, there is also some | :03:13. | :03:20. | |
bad news. One Singapore bank is basically suspending its loans | :03:21. | :03:26. | |
programme for London properties in the wake of the Brexit vote. This is | :03:27. | :03:34. | |
Singapore's third largest lender. They said they are being cautious | :03:35. | :03:38. | |
about lending, however, you have Singapore's largest bank continuing | :03:39. | :03:43. | |
to provide financing for property purchases in London. But they have | :03:44. | :03:47. | |
advised customers that they have to be cautious. Thank you so much. Very | :03:48. | :03:54. | |
interesting. There is still optimism, caution, but many | :03:55. | :04:00. | |
businesses are feeling better at the moment. | :04:01. | :04:01. | |
Whether that optimism continues on the markets, | :04:02. | :04:03. | |
and in the wider business world, depends on this question. | :04:04. | :04:06. | |
What kind of trading relationship will Britain have | :04:07. | :04:08. | |
with the European Union following the vote to Leave? | :04:09. | :04:10. | |
The UK has set up a government task force to prepare for negotiations. | :04:11. | :04:13. | |
The first is what is often described as the 'Norway model'. | :04:14. | :04:20. | |
Out of the EU, but belonging to the European | :04:21. | :04:22. | |
It would give Britain almost total tariff-free access | :04:23. | :04:25. | |
It's the option which is most similar to the status quo. | :04:26. | :04:31. | |
As well as paying into the EU budget, and accepting | :04:32. | :04:40. | |
the majority of EU law, European leaders have said it | :04:41. | :04:43. | |
would need to accept free movement of people. | :04:44. | :04:58. | |
This could be a real sticking point, as immigration was a central issue | :04:59. | :05:01. | |
Option two, the UK could try for an association agreement, or AA, | :05:02. | :05:06. | |
But there are big questions over whether this would protect access | :05:07. | :05:10. | |
for London's financial services market. | :05:11. | :05:15. | |
Without either of those, Britain could try to rely | :05:16. | :05:17. | |
But exports to the EU would likely be taxed, for instance US cars sold | :05:18. | :05:22. | |
in the EU have a tariff of 10-per cent. | :05:23. | :05:24. | |
Well, at the end of the EU summit yesterday, | :05:25. | :05:26. | |
European Council President Donald Tusk insisted that Britain will have | :05:27. | :05:29. | |
to accept Europe's terms if it wants access to the single market. | :05:30. | :05:35. | |
Leaders are absolutely determined to remain | :05:36. | :05:37. | |
united and we are closely together as 27. | :05:38. | :05:46. | |
We reconfirmed that Britain's withdrawal from the European Union | :05:47. | :05:49. | |
must be orderly, and there will be no negotiations of any kind | :05:50. | :05:53. | |
until the UK formally notifies its intentions to withdraw. | :05:54. | :05:55. | |
Leaders made it crystal clear today, access to the single | :05:56. | :05:57. | |
market requires acceptance of all four freedoms, | :05:58. | :05:59. | |
There will be no single market a la carte. | :06:00. | :06:17. | |
Marc Ostwald is a strategist at ADM Investor Services International. | :06:18. | :06:25. | |
Nice to see you. We've tried to simplify things as much as possible, | :06:26. | :06:34. | |
but this is incredibly complicated. At the moment, we don't know who the | :06:35. | :06:39. | |
key negotiator in the UK is. I think there are any number of aspects. | :06:40. | :06:44. | |
Negotiations are likely to be drawn out, likely to be politicised. It is | :06:45. | :06:48. | |
very important who is going to be taking over, particularly with the | :06:49. | :06:55. | |
new head of the Conservative government here. There are four key | :06:56. | :06:59. | |
areas. Financial services, which makes all the other models | :07:00. | :07:06. | |
noncomparable. Very important, Britain needs that. The financial | :07:07. | :07:13. | |
services sector needs that access. The question is, what price will | :07:14. | :07:18. | |
they pay for it and will add compromised anything that the Leave | :07:19. | :07:23. | |
campaign campaigned on? The other areas to look at the auto which has | :07:24. | :07:30. | |
lot of makers who export cars from the UK to Europe. That is important. | :07:31. | :07:37. | |
Defence, we... It shouldn't be too contentious, because Britain is | :07:38. | :07:44. | |
still a part of Nato. At that and the pharmaceuticals industry. Those | :07:45. | :07:49. | |
are the most important areas. The overall services sector will also be | :07:50. | :07:53. | |
important in terms of burgeoning technology, which has been given a | :07:54. | :07:57. | |
boost but is extraordinarily mobile. I think we'll need to remember that | :07:58. | :08:01. | |
if the wrong sort of agreement is made, it can basically relocate in a | :08:02. | :08:08. | |
matter of days because of the nature of the thing. How optimistic argue | :08:09. | :08:16. | |
that we will get a good outcome? Negotiations cannot officially get | :08:17. | :08:20. | |
under way in till we hit the Article 50 Button, as it were, which won't | :08:21. | :08:24. | |
happen until we have a new Prime Minister. Then we have a two year | :08:25. | :08:28. | |
period to figure it out. Are you optimistic we will come out with a | :08:29. | :08:31. | |
better option in the UK than we had before? I doubt it. I think we will | :08:32. | :08:37. | |
come out with something similar, and then the problem will be, what are | :08:38. | :08:45. | |
the social ramifications, sociopolitical ramifications here in | :08:46. | :08:49. | |
the UK? If the public here feels like it has been cute as to what | :08:50. | :09:01. | |
would happen after the Leave, they renege on their promises, then it | :09:02. | :09:06. | |
will go beyond just the relationship in trade terms. As he said, it will | :09:07. | :09:15. | |
take a long time and be complicated, we will do our best to inform you on | :09:16. | :09:17. | |
the journey. In other news: Confidence among | :09:18. | :09:26. | |
British consumers fell sharply in the days after the country | :09:27. | :09:28. | |
decided to Leave the European Union, The index measures people's economic | :09:29. | :09:31. | |
sentiment on a daily basis. It has slumped to its lowest level | :09:32. | :09:35. | |
since May 2013, when Britain's economy was just starting to emerge | :09:36. | :09:38. | |
from its post-financial The US operations of Deutsche Bank | :09:39. | :09:40. | |
and Santander have again failed annual stress tests by the US | :09:41. | :09:45. | |
Federal Reserve. The tests are designed to see how | :09:46. | :09:46. | |
banks would survive a severe financial crisis and economic | :09:47. | :09:50. | |
downturn, and were launched in the wake of the 2008 financial | :09:51. | :09:52. | |
crisis. The Fed said "broad and substantial | :09:53. | :09:55. | |
weaknesses" persisted Both banks had also | :09:56. | :09:57. | |
failed last year. While all 31 large US | :09:58. | :10:01. | |
banks passed the test, Morgan Stanley only got conditional | :10:02. | :10:03. | |
approval and has to submit a new capital plan by | :10:04. | :10:06. | |
the end of the year. The US Senate has approved a relief | :10:07. | :10:13. | |
plan to help Puerto Rico tackle its $70 billion debt, | :10:14. | :10:16. | |
ahead of a potential default on Friday when $1.9 billion worth | :10:17. | :10:19. | |
of payments are due. The US territory has been suffering | :10:20. | :10:24. | |
a decade-long recession that has seen thousands flee | :10:25. | :10:26. | |
for the US mainland. Businesses have closed, | :10:27. | :10:28. | |
schools have struggled with electricity shortages and | :10:29. | :10:30. | |
hospitals are short of medication. In recent months, a Zika virus | :10:31. | :10:32. | |
outbreak has hit Puerto Rico's That's World Business Report, stay | :10:33. | :10:47. | |
with us for the papers in just a moment. | :10:48. | :10:50. | |
Young patients were put at risk of harm, and parents were let down, | :10:51. | :10:59. | |
at a specialist children's heart unit, according to an independent | :11:00. | :11:01. | |
review into services at Bristol Royal Hospital | :11:02. | :11:04. |