10/11/2015

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:00:00. > :00:00.This is Business Live from BBC News with Sally Bundock and

:00:07. > :00:13.The British PM David Cameron rings the starting bell

:00:14. > :00:16.on the renegotiation of Britain's European Union membership.

:00:17. > :00:20.But the question is, has he got an impossible task ahead?

:00:21. > :00:39.Live from London, that's our top story

:00:40. > :00:43.Negotiating a "better deal", David Cameron lays

:00:44. > :00:47.out his demands in a letter to the European Council we go live to

:00:48. > :00:54.Easyjet calls for a tightening of security at certain airports

:00:55. > :00:57.around the world, in the wake of the suspected bomb attack

:00:58. > :01:15.The European trading day is under way. We have had figures in.

:01:16. > :01:18.And how much do you like your luxury brands?

:01:19. > :01:25.Ever been to Bicester Village near Oxford, England?

:01:26. > :01:28.The discount shopping outlet gets 6 million plus visitors a year and we

:01:29. > :01:32.will be speaking to the founder Scott Malkin about the secret to

:01:33. > :01:36.its success his big plans for further expansion in China.

:01:37. > :01:41.Today we want to know how do you feel about Easyjets call

:01:42. > :01:59.Let us know; just use the hashtag BBCBizLive.

:02:00. > :02:03.Welcome to the programme and we start with the task ahead

:02:04. > :02:06.for Prime Minister David Cameron who will set out his stall today

:02:07. > :02:11.His demands will be outlined in a letter to the president of

:02:12. > :02:18.With the UK electorate being presented

:02:19. > :02:22.with an in-out referendum by the end of 2017 it's critical they know what

:02:23. > :02:30.So what will the letter to President Donald Tusk likely include?

:02:31. > :02:32.Top of the list of demands is expected to be an opt-out

:02:33. > :02:37.from the ambition of some EU members to form a European super-state

:02:38. > :02:45.The British Government is also likely to do everything it can to

:02:46. > :02:50.negotiate a restriction to benefits for EU migrants living in Britain.

:02:51. > :02:56.Another of Cameron's renegotiation points will be to see

:02:57. > :03:00.if he can gain greater powers so the British Parliament can block the

:03:01. > :03:09.The UK also wants measures to prevent vast migrations from any new

:03:10. > :03:16.Something strongly opposed by other members.

:03:17. > :03:20.Zolt Darvas is a Senior Fellow at the European economic think tank

:03:21. > :03:38.Bruegel and he joins me now from Brussels In other news.

:03:39. > :03:47.We are not talking about an itemised shopping list here are we, Britain

:03:48. > :03:54.wants the key objectives? In my view, the least of Mr Cameron -- the

:03:55. > :03:59.list of Mr Cameron is moderately ambitious and I think it may not be

:04:00. > :04:04.that difficult to find a deal with both parties, I mean both the UK and

:04:05. > :04:09.its other European Union members. It will declare, as victory, that there

:04:10. > :04:15.are some certain issues like limiting migration or migrant

:04:16. > :04:22.benefits. There'll be a huge debate but I am reasonably positive that

:04:23. > :04:26.the deal will be reached and then it would depend on British people

:04:27. > :04:31.whether they want to stay or leave. Is it all-or-nothing though, if much

:04:32. > :04:34.of Europe or the other member states may have a problem about the

:04:35. > :04:39.migration of new member states, you said that could cause a problem. If

:04:40. > :04:51.that's not passed but the others are, is that all-or-nothing for the

:04:52. > :04:56.British Prime Minister? Compromise can be reached. I don't see a

:04:57. > :05:01.prospect for limiting inter-European Union migration to a significant

:05:02. > :05:05.degree, but on the other hand, I think agreeing that European Union

:05:06. > :05:10.migrants going to Britain, but also other countries, may be able to

:05:11. > :05:15.benefit from the domestic system only after some time that they have

:05:16. > :05:20.in the country. I think that's a natural demand which may be agreed

:05:21. > :05:26.and likely be agreed, in my view. Just to ask you a question, Zolt,

:05:27. > :05:29.about what is put forward to the UK electorate, as you say, it's the

:05:30. > :05:32.choice of the people of the UK at the end of the day, but what is

:05:33. > :05:35.always difficult for those trying to make that decision is to understand

:05:36. > :05:40.what the decision means for them. You are from an economic think-tank

:05:41. > :05:44.quite often the man in the street argues, I just don't understand the

:05:45. > :05:58.pros and cons, the arguments for and against, we need clarity don't we

:05:59. > :06:05.and Europe's not very good at that, is it Yes, my feeling is that there

:06:06. > :06:08.are many compromises. Some demands will be accepted, some will not. On

:06:09. > :06:14.the other hand, you know, the impact of UK membership and exit, the

:06:15. > :06:20.impact on the economy, the impact on people will be not clear at all.

:06:21. > :06:25.There are certain calculations showing how much GDP will be lost

:06:26. > :06:29.here and there, probably not reliable and also, if Britain would

:06:30. > :06:33.leave the European Union, a lot will depend on that new relationship that

:06:34. > :06:39.the UK have with the rest of the European Union. Will it be a

:06:40. > :06:44.Norway-type relationship where it benefits from the single market but

:06:45. > :06:48.doesn't have any say on things or will it be much lighter? A lot will

:06:49. > :07:01.depend on what the relationship will be. The saga will continue. Thank

:07:02. > :07:02.you very much. As and when more details come through, we'll bring it

:07:03. > :07:04.to you. General Motors may

:07:05. > :07:20.face larger penalties in trials with punitive damages for knowledge

:07:21. > :07:23.it had about faulty switches. GM argued it should not face these

:07:24. > :07:26.charges because its 2009 bankruptcy An absence

:07:27. > :07:32.of big civil aircraft orders on the second day of the Dubai Airshow has

:07:33. > :07:36.underlined a slowdown in the rate of Defence deals were again

:07:37. > :07:41.the main focus, although Emirates Airline signed

:07:42. > :07:44.a $16 billion deal for GE Aviation The previous Dubai show, in 2013,

:07:45. > :08:19.notched up a record $206bn Let's talk about easyJet now. We

:08:20. > :08:24.have talked about the British tourists who've been stranded in

:08:25. > :08:29.Egypt. EasyJet flies a lot between Luton and Sharm El-Sheikh. It's

:08:30. > :08:35.Europe's second largest carrier, it said it had 4,500 down in Sharm

:08:36. > :08:40.El-Sheikh at the height of the disaster. We'll hear more about what

:08:41. > :08:46.the boss had to say about that and what her feeling is about it later,

:08:47. > :08:58.it's all there on the website for you to read.

:08:59. > :09:02.First, Rajeshni Naidu-Ghelani is in Singapore where the latest data

:09:03. > :09:08.continues to fuel concerns about the slowing Chinese economy...

:09:09. > :09:14.The Government's rolled out measures to boost the economy. The data today

:09:15. > :09:21.shows the Consumer Price Index rose 1.3% in October from a year ago and

:09:22. > :09:26.that's below forecast slower than the 1.6% rise we saw in September.

:09:27. > :09:29.Of course, there's still persistent deflation as well in factory gate

:09:30. > :09:40.prices which fell for the 44th month in a row. So what does all this

:09:41. > :09:45.mean? Economists say the door is wide-open for more stimulus. It

:09:46. > :09:48.seems that the measures are not spurring spending because food

:09:49. > :09:51.prices are fallingthing and there's not enough demand. At this point,

:09:52. > :10:06.it's really hard to see how Beijing is going to hit that target of about

:10:07. > :10:11.3% inflation this year. The Chinese perhaps could do more to boost its

:10:12. > :10:15.economy. The Nikkei slightly up. Hang Seng down. Shanghai having a

:10:16. > :10:18.difficult session. That is the night before on Wall Street who had a

:10:19. > :10:21.rough session because of concerns about what it means if interest

:10:22. > :10:26.rates in the US go up in December. Let's look at Europe. We have had

:10:27. > :10:30.news from all sorts of companies in Europe, including the likes of

:10:31. > :10:36.Vodafone. Lufthansa is still embroiled in strike action, but also

:10:37. > :10:41.Hornby shares caught my attention. Trading in London, they make the

:10:42. > :10:45.tiny toy trains, down over 7%, their second profits warning in just two

:10:46. > :10:48.months. Hornby is struggling in the run-up to Christmas, how can that

:10:49. > :11:03.be? ! That's the European markets behind me, as you can see they are

:11:04. > :11:16.all higher. Looking ahead to wall To Wall Street, Nada Tawfik is there

:11:17. > :11:21.for us. There is been a speciality pharmacy faking sales in order to

:11:22. > :11:24.inflate drug prices. Companies deny the allegations and the Chief

:11:25. > :11:28.Executive will discuss the company's plans now that it's ended its

:11:29. > :11:32.relationship. The labour department will put out import and export

:11:33. > :11:35.prices for October while the commerce department will issue

:11:36. > :11:39.wholesale inventories for December. We'll get an idea how small

:11:40. > :11:43.businesses were feeling in October when the small business optimism

:11:44. > :11:46.index is released, making up the majority of new job creation so

:11:47. > :11:48.could point to even more growth in the US economy.

:11:49. > :11:52.Joining us is James Bevan, Chief Investment Officer at CCLA

:11:53. > :12:09.Investment Management Still to come how much do you like shopping?

:12:10. > :12:17.What's been the challenge? The real challenge has been when there have

:12:18. > :12:24.been big problems, people say, excuse me, we need you to bail us

:12:25. > :12:28.out, everybody thinks this is great and they want someone else to bail

:12:29. > :12:33.out the problem, this is the global regulator saying, guys, this time

:12:34. > :12:36.it's going to be different, you are going to have lots of debt,

:12:37. > :12:40.therefore you don't have to come back to the taxpayer. This is an

:12:41. > :12:43.announcement made late yesterday and it's all over the business pages

:12:44. > :12:46.today. Is it enough, does this mean the banks are safe and we won't be

:12:47. > :12:50.having to bail them out again? It's a step in the right direction. Of

:12:51. > :12:54.course, what is critically important is that there is enough cash set

:12:55. > :13:00.aside for bad things that go wrong and it's very difficult to tell what

:13:01. > :13:03.might next go wrong. After all, the global financial crisis arrives to

:13:04. > :13:06.this news that there were creeks and strains but there is a dynamic

:13:07. > :13:13.tension between the banks that want to make money and the regulators

:13:14. > :13:18.that want safety. Lufthansa is in the middle of a strike which started

:13:19. > :13:23.last Friday for a week. This is an airline that's lost $140 million

:13:24. > :13:27.because of pilot strike, it's losing 10 million euros a day because of

:13:28. > :13:35.this. Can it just keep going? I'm afraid it can. Sales of 32 billions

:13:36. > :13:40.a year, so it is a huge company, it has 5,000 pilots, it says it doesn't

:13:41. > :13:43.mind some of them retiring leave. Have they put enough cost

:13:44. > :13:48.restructuring in place? The consensus is they have probably done

:13:49. > :13:52.enough. What is going to happen with euro wings, they can't give way on

:13:53. > :13:57.that, can they contain costs going forward, that's what the strike is

:13:58. > :14:04.about. You will go through the papers with us later. Can't wait.

:14:05. > :14:10.Really exciting stuff. Still to come: How much do you like to shop?

:14:11. > :14:14.Would you believe some people choose their holiday destinations so they

:14:15. > :14:26.can go shopping. Really? ! Is that you, definitely not me! Bicester

:14:27. > :14:31.village attracts thousands every year for the shopping.

:14:32. > :14:34.You're with Business Live from BBC News The chief executive

:14:35. > :14:36.of Easyjet has called for a tightening of security at certain

:14:37. > :14:39.airports around the world, in the wake of the suspected bomb attack

:14:40. > :14:49.Carolyn McCall has been speaking to our business editor Kamal Ahmed.

:14:50. > :14:55.What else did she say? She was talking about this situation in

:14:56. > :15:01.Sharm El-Sheikh with the airliners putting global airport security back

:15:02. > :15:05.in the headlines? Yes, I spoke to Carolyn and she had a big message

:15:06. > :15:11.for her customers, she did apologise for the frustrations and delays that

:15:12. > :15:15.they have faced. She said that a lot of the situation in Sharm El-Sheikh

:15:16. > :15:23.and Egypt was out of her control but she did pledge to

:15:24. > :15:31.Ella mac the really big message, as you said, was on the issue of

:15:32. > :15:37.airport security. I raised that with her when I spoke to her earlier.

:15:38. > :15:43.Some airport security is very tight and very strict, British airports do

:15:44. > :15:48.security very well. I think that, there are some other countries that

:15:49. > :15:53.airlines fly to, where it perhaps needs to be tightened. Do you think

:15:54. > :15:57.Sharm el-Sheikh is one of those? The government has said quite clearly,

:15:58. > :16:02.that they need to tighten airport security, they have also said that

:16:03. > :16:09.Sharm is not the issue but airport security is next to it. Do you agree

:16:10. > :16:13.with that? I think I do. It is not a blanket message, it is a specific

:16:14. > :16:19.message about certain airports around the world, this is a global

:16:20. > :16:26.thing. And I think that passengers will be happy about that and I think

:16:27. > :16:29.that airlines will support that. She is clearly making a far wider

:16:30. > :16:35.message about global airline security that goes well beyond the

:16:36. > :16:40.events in Egypt, and I think these are pretty significant interventions

:16:41. > :16:45.by the chief Executive of easyJet. STUDIO: Thank you very much, we have

:16:46. > :16:50.got more details online. How about this one? Indian group sues the

:16:51. > :16:57.Queen. Over what they say is a stolen diamonds. This is in the

:16:58. > :17:01.women's addition of the New York Times, this is a group of Bollywood

:17:02. > :17:08.stars and Indian business people who are suing the Queen apparently. You

:17:09. > :17:11.are watching business live, the top story is that our British Prime

:17:12. > :17:15.Minister David Cameron is going to set out his renegotiation with the

:17:16. > :17:19.European Union, he is going to do it later today. In a letter to The

:17:20. > :17:26.European Council president Donald Tusk, he is set to press for four

:17:27. > :17:34.things, restricting benefits to migrants. The Prime Minister says

:17:35. > :17:41.that reforming PE you will be a big task but not an impossible one. So

:17:42. > :17:45.there you go. -- reforming the EU. There are few towns that are better

:17:46. > :17:49.known around the world as a shopping destination than a place to live,

:17:50. > :17:53.and Bicester Village in the UK is one of them. A small town in

:17:54. > :17:58.Oxfordshire has got a population of 30,000 people, but it attracts more

:17:59. > :18:04.than 6 million people a year from all over the world. Why? The calls

:18:05. > :18:09.they are all heading to Bicester Village, it is a shopping outlet

:18:10. > :18:13.that has hundreds of designer brands, at discount prices. The

:18:14. > :18:20.statistics are remarkable, like-for-like sales have grown in

:18:21. > :18:24.double jujitsu, since it opened 20 years ago. More than half of the

:18:25. > :18:30.visitors are from overseas, particularly China. The man who

:18:31. > :18:33.created this global shopping phenomenon, is Scott Markham, an

:18:34. > :18:44.American, it actually operates nine of them.

:18:45. > :18:49.It has opened two in China. And one opening very soon. He says that his

:18:50. > :18:57.entrepreneurial side comes from his family, his father is a real estate

:18:58. > :19:03.tycoon who owns the Empire State building. He is also the owner of

:19:04. > :19:09.the New York Islanders professional hockey team. That is one of his

:19:10. > :19:13.passions. Nice to see you. Let us start with a bit about you, there

:19:14. > :19:23.are allsorts of retail avenues that you could have gone into. Why the

:19:24. > :19:29.outlet business model? The business brands and fashion is fascinating,

:19:30. > :19:33.the way that those brands create value, and interject themselves in

:19:34. > :19:38.the lives of you and me is what keeps them going. The energy, the

:19:39. > :19:43.cycle of seasons, the fashion is fundamental to a big part of our

:19:44. > :19:46.economy. Those brands, it is clear that when they have surplus and the

:19:47. > :19:51.financial markets expect them to deal with the surplus in a

:19:52. > :19:55.progressive way, that was the tipping point that allowed projects

:19:56. > :19:59.like Bicester Village to emerge. White but it is also brutal, anyone

:20:00. > :20:03.who works in retail will say that you need to have a really thick

:20:04. > :20:08.skin. You have clearly got a model that works, what we were saying

:20:09. > :20:15.about like-for-like sales growing every year since you started 20

:20:16. > :20:20.years ago. How have you done that? Hard work, good luck and the rising

:20:21. > :20:25.tide. A lot of what we have accomplished has been the brands

:20:26. > :20:29.themselves growing, what were local and regional brands become Europe

:20:30. > :20:35.and global brands beyond Europe into China across the world. So we serve

:20:36. > :20:40.them, we try to halt them in Asia and across Europe, we are now really

:20:41. > :20:45.a long haul tourism business now, bringing people from across the

:20:46. > :20:50.world to Bicester Village. White so we are talking about Chanel, Ralph

:20:51. > :20:56.Lauren, Burberry,. All of those high-end luxury brands that are

:20:57. > :21:02.mainly based, is that true? So we are based on fashion brands, rather

:21:03. > :21:06.than high street brands. We are not really in the business of delivering

:21:07. > :21:11.high Street, we are more the fashion hub and, fashion and retail when

:21:12. > :21:16.they work they are really about experience and memories. Our

:21:17. > :21:21.business is about making women happy, I have got four daughters and

:21:22. > :21:27.that is my training. My dad and you should chat sometimes. Let us talk

:21:28. > :21:32.about this, China, very interesting, you have been in China for one

:21:33. > :21:38.year, you have got one in Shanghai, outside, only one year. I am

:21:39. > :21:44.wondering, is that a bomb in China, given the slowdown? The Chinese

:21:45. > :21:48.economy overall is growing steadily, not as fast as it did but it is the

:21:49. > :21:53.fastest-growing economy globally, the key thing of China, is

:21:54. > :22:00.discovering the openness and opening up to Europe. Travelling across an

:22:01. > :22:04.incredible digital country, everyone transmits online, and the awareness

:22:05. > :22:09.of what goes on in the West, transplants to China. So we are

:22:10. > :22:14.delivering the authentic European experience to China and that really

:22:15. > :22:21.work. What is your main competitor, is it duty free in airports? Who do

:22:22. > :22:26.you see as your competitor? Well I think that we are quite a lot about

:22:27. > :22:32.tourism shopping which relates to airports. We are like terminal six,

:22:33. > :22:40.like Keith robot without the planes, just the spa and the shops. I would

:22:41. > :22:44.say that the main competition would be efficiency which is online,

:22:45. > :22:53.versus experience. So we really complements that. Thank you very

:22:54. > :22:56.much, that is a very interesting insight into the shopping experience

:22:57. > :23:03.for the global traveller. Making women happy. I tried. The world's

:23:04. > :23:09.second-largest operator Vodafone is offering better than expected

:23:10. > :23:14.figures, until the six months to October. Beating expectations.

:23:15. > :23:18.Results came in at the time of increased merger activity, talking

:23:19. > :23:20.exclusively to the BBC, Vodafone chief executive said it had major

:23:21. > :23:32.concerns about the deal to buy EE. Lure I think storage

:23:33. > :23:38.Telecom is now becoming the biggest shareholder of BT are clearly trying

:23:39. > :23:44.to remodel the sector, trying to unwind 30 years of competition. They

:23:45. > :23:49.have tried to use their own copper network to force older technologies,

:23:50. > :23:53.slow lanes, to become the way to deliver broadband. I find it

:23:54. > :23:58.interesting that in the UK you talk about 10 megabits per second, in

:23:59. > :24:06.southern Europe, in Spain in Portugal, in Italy, it is actually

:24:07. > :24:10.100, 200, 300 megabits per second. We are going backwards, we are

:24:11. > :24:16.trying to re-monopolise, they are trying to reduce competition and

:24:17. > :24:21.choice. Let us get straight into it. We are going to talk about Russia

:24:22. > :24:27.and the anti-doping, we have seen sponsors already trying to make

:24:28. > :24:31.murmurs? Yes, this time around, the sponsors saying that we not only

:24:32. > :24:35.care about the number of people watching, this is all about who is

:24:36. > :24:43.interested in tuning in. But also are we going to be associated with

:24:44. > :24:48.the right storyboard? Just quickly, on the airport story, we have had a

:24:49. > :24:52.lot of tweets about this from viewers, saying that "airport

:24:53. > :24:58.security should be increased hundred percent no matter what the cost".

:24:59. > :25:03."Yes more security but will that not tax the patience of passengers".

:25:04. > :25:08.What do you think about that? I think it is a tough one, what I have

:25:09. > :25:15.found fascinating is how resilient people are too these outrages. If

:25:16. > :25:18.one goes back to the terrible 911 catastrophe actually passenger

:25:19. > :25:25.numbers got back very quickly. Let us quickly talk about this, a $170

:25:26. > :25:32.million new deed. There it is. Apparently a Chinese buyer may be.

:25:33. > :25:37.Your thoughts about an overheated art market? The problem with the art

:25:38. > :25:40.market, is that supply is truly limited for the masterpieces and

:25:41. > :25:44.when you have a small amount of people with enormous amounts of

:25:45. > :25:53.money, they can pay anything. They can. James, always a pleasure. Thank

:25:54. > :25:54.you very much. Thank you for your company, we will see you soon.

:25:55. > :25:59.Goodbye.