23/11/2016 World Business Report


23/11/2016

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The UK's Finance Minister is poised to announce billions of pounds worth

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of new government spending but is Britain's national debt pile

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Grounded - Germany's Lufthansa cancels nearly 900 flights

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as a last minute court bid to stop a pilot's strike fails.

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Also in the programme Facebook woos China but at what price Mariko Oi

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The UK's Autumn Statement - which is the budget -

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will be announced in a few hours' time.

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It's especially important this time because it's the first fiscal plan

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that's been unveiled since the Brexit vote

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and since Philip Hammond became Chancellor.

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The UK leaving the European Union presents specific challenges

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the government will have to face head on.

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Well, the finance minister is likely to pledge increased

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?5 billion or $6.2 billion is the number being mentioned.

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That's modest compared to say Donald Trump's $1 trillion

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Another area likely to get a cash infusion is research and development

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?2 billion worth going to the industry,

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which is being touted by the government as a long

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Also there is expected to be something for the so-called

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Jams - those people who are "just about managing" -

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so perhaps increased benefits for working mums

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and an increase in the lowest tax threshold.

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But the money to pay for this has to come from somewhere.

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The government is likely to borrow ?100 billion over the next five

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years - about $124 billion dollars - to foot the various bills.

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With me is Laurie Macfarlane - an economist from

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Good morning. This is a critical one question that this is the first big

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test for the Chancellor. It is his chance to set out his vision post

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Brexit. The announcement comes at a challenging time. A forecast is

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expected to show high inflation and slower growth. What will be

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interesting will be to see if he uses this opportunity to show a

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marked change in direction for the economy or chooses a more low-key

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affair. Evidence suggests it will be the latter that he can be forgiven

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because it is the first event since the leadership. He has less wiggle

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room because of the problem of the lower growth forecast for next year

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and beyond which means with much less revenue coming in, he really

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does not have the money to spend? The Chancellor will be juggling

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trade-offs between maintaining credibility with public finance and

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the economy and also acting to stave off any down turn from a Brexit and

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acting to address the key concerns addressed by voters in the

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referendum campaign. Some are of the view he should be taking bold action

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in public investment, critical housing. It is clear part of the

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country have been airing their discontent for quite sometime.

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Though the room for spending is lower than perhaps back in March for

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George Osborne, he has crucially if he is investing in infrastructure

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and R, it should help with finances and the economy. Many are

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arguing it will be a lower key effect to keep the big guns for

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maybe a budget just before an election in 2020 and the start of

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Brexit negotiations where it is not clear how that will go and what that

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will mean ultimately for the UK economy. He may have to invest more

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in the latter budget? Exactly. We can expect a relatively low affair.

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Apparently will be shorter than in previous years. He will be focusing

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on domestic issues. He will be under some pressure to announce measures

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to help the so-called James which are managing families. An increase

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in personal allowance. Crucially, that does not do anything to help

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the 5 million individuals who do not earn enough to pay income tax. And

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passenger duties could also be looked at. Infrastructure... We have

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heard there is going to be an announcement in roads and broadband

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and perhaps one or two other big announcements. It is important to

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say that the amount of money we are talking about is relatively small

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but definitely a step in the right direction. Thank you for your time.

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We are right across the Autumn statement and you will be able to

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hear and watch it live and also here our analysis.

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A court in Germany has rejected an appeal by Lufthansa -

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in a bid to stop a 24-hour pilots strike.

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The airline has cancelled about 875 flights today -

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and that's affecting more than 100,000 passengers.

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The union behind the industrial action says it now plans another

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This will be the view at airports across Germany today. Rows of empty

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Lufthansa planes parked up and going nowhere. An estimated 100,000 people

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are affected by this two-day strike. This is a dispute that has been

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running for more than two years. The pilot union want a 3.7% pay rise

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dating back to 2012. Lufthansa is offering a 2.5% increase. In a

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recent interview, the boss of Europe's biggest airline spoke about

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challenging environment as they try to compete with budget rivals and

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update their fleet. We have huge cost pressure and it has been an

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issue for this industry for years and we cannot depend on the oil

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prices remaining where they have been lately so that does not relieve

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us from continuously working on efficiency and cost reduction. This

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action comes just 24 hours after Eurowings, its low-cost subsidiary,

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had to cancel 65 in a separate dispute with cabin crew is. Other

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airlines will check to see if they can use larger planes to try to

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accommodate some of the affected passengers.

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Facebook has been working on a tool that would pave the way

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for censoring certain content if the network was ever

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to launch in China - that's according to

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We have a black screen at the moment... It will seem we are

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struggling to link up... That she is. What a relief. What is going on

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with Facebook? It is based on a report in the New York Times.

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Facebook did not exactly deny or confirm whether this censorship tool

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does exist. But the New York Times article quotes are current and

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former Facebook employee and they say it is still in the early stages

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and might not become a reality but there has been quite a lot of public

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reaction because while it takes out some content, Facebook, based on the

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government requests are around the world, by giving... By creating this

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kind of cool it is tactically giving away that control to a state and

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that is quite significant. We will see if this is really true and if it

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will materialise but there has been quite a lot of reaction online.

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In other news: There are reports talks between Greece

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and its international creditors were paused on Tuesday -

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after Athens accused its partners of pushing for tough new cuts

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which it said would be a social disaster.

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It needs to reach agreement with eurozone lenders

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and the international monetary fund by early December to unlock

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The Japanese car maker Toyota is recalling more than 800-thousand

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minivans in North America - over concerns the sliding doors

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could open while the vehicle is moving.

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The recall affects Sienna minivans from 2011 to 2016.

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Toyota says it is still developing a fix for the problem.

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That is not what you want to happen. Looking at markets. Oil prices

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slightly down. Japan is closed for a holiday at so take no notice of

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that. The market is grabbing all the headlines are in the US. All hitting

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record highs. The Trump effects pushing up sharemarket in their US.

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We will talk about that when we look at the papers in a moment.

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