Browse content similar to 06/07/2016. Check below for episodes and series from the same categories and more!
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Those are the latest headlines from BBC World News. | :00:00. | :00:00. | |
Now for the latest financial news with Aaron | :00:00. | :00:07. | |
One of Europe's biggest airlines in a Brexit bother. | :00:08. | :00:21. | |
We're taking a look at how easyJet's business model, | :00:22. | :00:23. | |
based on the freedom of movement across Europe, | :00:24. | :00:25. | |
may be in trouble once Britain is out of the EU. | :00:26. | :00:30. | |
And from Brexit loser to potential Brexit winner - | :00:31. | :00:33. | |
how India's multi-billion dollar clothing industry is hoping | :00:34. | :00:35. | |
for a better trade deal with the UK after it leaves the EU. | :00:36. | :00:51. | |
This is a bite-size snapshot of the latest in the world of business and | :00:52. | :01:02. | |
money. As the dust settles | :01:03. | :01:03. | |
following the UK's decision to leave the European Union, businesses | :01:04. | :01:05. | |
are taking stock over the impact the decision may or may not have | :01:06. | :01:08. | |
on their daily operations. One company whose core | :01:09. | :01:11. | |
business is based on freedom of movement across Europe is the low | :01:12. | :01:13. | |
cost airline easyJet, which is reportedly already in talks | :01:14. | :01:17. | |
with aviation regulators from EU member states about acquiring an air | :01:18. | :01:21. | |
operator's certificate in a European country so it can carry | :01:22. | :01:26. | |
on with business as usual. I will explain all of that in a | :01:27. | :01:34. | |
moment. EasyJet says it has "no plans" | :01:35. | :01:36. | |
to move its headquarters from Luton, but will need | :01:37. | :01:38. | |
to consider its options. I'm joined by Alan Bowen, | :01:39. | :01:44. | |
Managing Partner at AGB Associates. Great to have you with us. Good | :01:45. | :01:54. | |
morning. Can we bring the map up? Where is it? Obviously it was not | :01:55. | :02:00. | |
going to work. Hang on. There we go. This is the problem. You explain | :02:01. | :02:07. | |
this to me. EasyJet is in EU airline and it can fly point-to-point | :02:08. | :02:12. | |
anywhere within the EU. Absolutely. If the UK leaves the EU, easyJet | :02:13. | :02:21. | |
comes a UK alone. Any EU airline to fly between any two points. Once we | :02:22. | :02:26. | |
cease to be in the EU, I write terminates, and we would have to | :02:27. | :02:28. | |
negotiate with each individual country on a bilateral agreement | :02:29. | :02:35. | |
which will be slow and difficult. EasyJet's model is based on the | :02:36. | :02:39. | |
freedom of movement. It has headquarters in a lot of these | :02:40. | :02:45. | |
countries. Yes. It has bases in 11 countries, and owns an airline in | :02:46. | :02:49. | |
Switzerland already, which bought some time ago. There is easyJet | :02:50. | :02:54. | |
Switzerland. But that will not help in the future. It is looking at | :02:55. | :02:59. | |
setting up a domicile in another country to enable it to get a new | :03:00. | :03:04. | |
licence. It has bought a Swiss airline, but could buy an airline in | :03:05. | :03:08. | |
one of these EU countries, and that could give it the same access? It | :03:09. | :03:12. | |
could, it doesn't want to do that at the moment. The market is very | :03:13. | :03:16. | |
tight. Ryanair is its biggest competitor and is an EU airline | :03:17. | :03:21. | |
because it is based in the Republic of Ireland. Norwegian airlines is | :03:22. | :03:29. | |
number three. They have an agreement occurs they allow freedom of | :03:30. | :03:35. | |
movement, so even though it is not an EU country, it gets the benefits. | :03:36. | :03:43. | |
If we broaden this out further globally, you has an open skies | :03:44. | :03:46. | |
agreement with the United States. That allows pretty much every | :03:47. | :03:49. | |
airline from either side to go anywhere. If the UK leaves the EU, | :03:50. | :03:56. | |
then what? Unless we reach a new agreement and the Americans already | :03:57. | :03:58. | |
said we are going to be at the back of the queue for new agreements, we | :03:59. | :04:02. | |
go back to the original agreement, open skies, which was called Bermuda | :04:03. | :04:08. | |
two, and that allowed two airlines from the US and to from the UK to | :04:09. | :04:13. | |
fight transatlantic -- two from the UK. If you limit that to two | :04:14. | :04:19. | |
airlines, rises will go to the roof. Absolutely. Prices are much lower | :04:20. | :04:25. | |
than they were 25 years ago, and we could potentially go back to where | :04:26. | :04:32. | |
we were before. So there is British Airways and virgin, but then you | :04:33. | :04:35. | |
have all of the minor airlines which I UK based. Yes, and there are more | :04:36. | :04:41. | |
than two US airlines flying transatlantic as well, and it is | :04:42. | :04:44. | |
where many make their money. There is no benefit for the airlines, and | :04:45. | :04:47. | |
no benefit for the consumer. We appreciate it. We may see you live | :04:48. | :04:58. | |
next week at the airshow. Shares in Tokyo have seen | :04:59. | :05:00. | |
a bad day so far today. The Nikkei ended the morning | :05:01. | :05:03. | |
session down close to 3%. Investors are moving out | :05:04. | :05:07. | |
of stocks and into currency, with the yen continuing to gain | :05:08. | :05:09. | |
as it's seen as a safe haven. The more people by the yen, that | :05:10. | :05:26. | |
which is its value up and makes it much more expensive for the Japanese | :05:27. | :05:31. | |
exporters, and for us to buy them, so we buy less. That is not good. | :05:32. | :05:34. | |
And, Sharanjit, apparently this is because of Brexit - | :05:35. | :05:36. | |
That is not good at all, and the Japanese exporters are not liking | :05:37. | :05:45. | |
it. But I should say that the yen, seen as a safe haven, is rising | :05:46. | :05:51. | |
significantly against the pound. The pound earlier hit a 31 year ago | :05:52. | :05:56. | |
against the US dollar. Markets are still remaining very edgy in the | :05:57. | :06:02. | |
wake of the Brexit folk, and the yen is something of a safe haven, and it | :06:03. | :06:07. | |
is now driving down Japanese stocks, which are explained pretty well. | :06:08. | :06:13. | |
Brexit is having a lot of impact in Asia. A lot of nervousness overnight | :06:14. | :06:19. | |
on Wall Street. There are about 1000 Japanese firms that operate in the | :06:20. | :06:24. | |
UK, many of which could say a huge impact on its operations due to | :06:25. | :06:32. | |
Brexit. They see the UK as a portly Dylan with Europe, and the outlook | :06:33. | :06:35. | |
for Stelling does not appear incredibly bright -- port for | :06:36. | :06:43. | |
dealing with Europe. Bloomberg are projecting that the pound will fall | :06:44. | :06:47. | |
to new parity to the US dollar by the end of September, $1.16. That is | :06:48. | :06:54. | |
a real shock for many. Thank you. That is a nice and Rosie theme to | :06:55. | :07:00. | |
leave us on. No holidays left for us! Thank you. We will speak to you | :07:01. | :07:07. | |
soon. But good news to UK exporters. Let's talk about another story. We | :07:08. | :07:10. | |
can't get away from Brexit. Take India's textile exports | :07:11. | :07:13. | |
to the UK as an example. They're worth around $2 billion | :07:14. | :07:15. | |
a year, and the UK is the most important market in Europe | :07:16. | :07:19. | |
for garment traders in India. Their business is already hurt | :07:20. | :07:21. | |
by the fall in the pound, as Yogita Limaye | :07:22. | :07:24. | |
reports from Mumbai. Made in India to be sold overseas. | :07:25. | :07:38. | |
All of the clothes manufactured at this factory in Mumbai are for | :07:39. | :07:43. | |
export. The company produces 1.8 million garments every month. And | :07:44. | :07:47. | |
60% of its business comes from the UK. So with a value of the pound | :07:48. | :07:56. | |
falling sharply after Brexit, its earnings are being hit. If I don't | :07:57. | :08:01. | |
get a proper pricing, we will be looking for a different market. I | :08:02. | :08:06. | |
can go to other countries like USA or other European markets or a | :08:07. | :08:09. | |
study, and we can get the business. I can't take immediate steps or | :08:10. | :08:16. | |
strategies, but in the long-term, yes, if I don't get support, I will | :08:17. | :08:23. | |
definitely save it. More than a third of India's textile exports go | :08:24. | :08:28. | |
to the European Union, and the UK is the biggest buyer. Traders here have | :08:29. | :08:34. | |
heard it been finding Europe a tough market to sell. A T-shirt made here, | :08:35. | :08:41. | |
when a retailer buys it, they have to pay import tax. If a similar | :08:42. | :08:45. | |
T-shirt is bought from a country like Bangladesh, there is 0% duty. | :08:46. | :08:49. | |
That makes Indian clothes less competitive. Now that the UK has | :08:50. | :08:57. | |
voted to cut itself away from the EU, it is expected to start looking | :08:58. | :09:00. | |
to do more trade with other markets. And the Indian government is | :09:01. | :09:06. | |
demanding a better deal. The benefits which were given to | :09:07. | :09:10. | |
Bangladesh and a few other countries were not extended to India. As a | :09:11. | :09:18. | |
result of that, not just the loss in terms of employment generation, but | :09:19. | :09:23. | |
a sector which had strength, which pioneered, and reached a global | :09:24. | :09:29. | |
market, it was unfairly pushed out of its traditional markets. So that | :09:30. | :09:35. | |
I would think would give us the advantage in a matter of a couple of | :09:36. | :09:39. | |
years to be able to serve the UK and the European Union. Ironing out such | :09:40. | :09:48. | |
an agreement will take time. For now, Indian factories will be | :09:49. | :09:50. | |
looking for answers from their UK partners. | :09:51. | :09:59. | |
Avid Life Media, the owner of infidelity dating website | :10:00. | :10:01. | |
Ashley Madison, is being investigated | :10:02. | :10:02. | |
Last year, hackers stole the personal information of millions | :10:03. | :10:06. | |
of the website's customers, which helps link up married people | :10:07. | :10:09. | |
Mostly married blokes, I believe. That'll teach them! | :10:10. | :10:21. | |
Don't forget you can get in touch with me and some | :10:22. | :10:24. | |
We will be back to look at the newspaper shortly. | :10:25. | :10:34. | |
NHS inspectors from the Care Quality Commission have revealed that | :10:35. | :10:36. | |
a patient lay dead for up to 4.5 hours before | :10:37. | :10:41. |