10/11/2015 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and


The British PM David Cameron rings the starting bell


on the renegotiation of Britain's European Union membership.


But the question is, has he got an impossible task ahead?


Live from London, that's our top story


Negotiating a "better deal", David Cameron lays


out his demands in a letter to the European Council we go live to


Easyjet calls for a tightening of security at certain airports


around the world, in the wake of the suspected bomb attack


The European trading day is under way. We have had figures in.


And how much do you like your luxury brands?


Ever been to Bicester Village near Oxford, England?


The discount shopping outlet gets 6 million plus visitors a year and we


will be speaking to the founder Scott Malkin about the secret to


its success his big plans for further expansion in China.


Today we want to know how do you feel about Easyjets call


Let us know; just use the hashtag BBCBizLive.


Welcome to the programme and we start with the task ahead


for Prime Minister David Cameron who will set out his stall today


His demands will be outlined in a letter to the president of


With the UK electorate being presented


with an in-out referendum by the end of 2017 it's critical they know what


So what will the letter to President Donald Tusk likely include?


Top of the list of demands is expected to be an opt-out


from the ambition of some EU members to form a European super-state


The British Government is also likely to do everything it can to


negotiate a restriction to benefits for EU migrants living in Britain.


Another of Cameron's renegotiation points will be to see


if he can gain greater powers so the British Parliament can block the


The UK also wants measures to prevent vast migrations from any new


Something strongly opposed by other members.


Zolt Darvas is a Senior Fellow at the European economic think tank


Bruegel and he joins me now from Brussels In other news.


We are not talking about an itemised shopping list here are we, Britain


wants the key objectives? In my view, the least of Mr Cameron -- the


list of Mr Cameron is moderately ambitious and I think it may not be


that difficult to find a deal with both parties, I mean both the UK and


its other European Union members. It will declare, as victory, that there


are some certain issues like limiting migration or migrant


benefits. There'll be a huge debate but I am reasonably positive that


the deal will be reached and then it would depend on British people


whether they want to stay or leave. Is it all-or-nothing though, if much


of Europe or the other member states may have a problem about the


migration of new member states, you said that could cause a problem. If


that's not passed but the others are, is that all-or-nothing for the


British Prime Minister? Compromise can be reached. I don't see a


prospect for limiting inter-European Union migration to a significant


degree, but on the other hand, I think agreeing that European Union


migrants going to Britain, but also other countries, may be able to


benefit from the domestic system only after some time that they have


in the country. I think that's a natural demand which may be agreed


and likely be agreed, in my view. Just to ask you a question, Zolt,


about what is put forward to the UK electorate, as you say, it's the


choice of the people of the UK at the end of the day, but what is


always difficult for those trying to make that decision is to understand


what the decision means for them. You are from an economic think-tank


quite often the man in the street argues, I just don't understand the


pros and cons, the arguments for and against, we need clarity don't we


and Europe's not very good at that, is it Yes, my feeling is that there


are many compromises. Some demands will be accepted, some will not. On


the other hand, you know, the impact of UK membership and exit, the


impact on the economy, the impact on people will be not clear at all.


There are certain calculations showing how much GDP will be lost


here and there, probably not reliable and also, if Britain would


leave the European Union, a lot will depend on that new relationship that


the UK have with the rest of the European Union. Will it be a


Norway-type relationship where it benefits from the single market but


doesn't have any say on things or will it be much lighter? A lot will


depend on what the relationship will be. The saga will continue. Thank


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


to you. General Motors may


face larger penalties in trials with punitive damages for knowledge


it had about faulty switches. GM argued it should not face these


charges because its 2009 bankruptcy An absence


of big civil aircraft orders on the second day of the Dubai Airshow has


underlined a slowdown in the rate of Defence deals were again


the main focus, although Emirates Airline signed


a $16 billion deal for GE Aviation The previous Dubai show, in 2013,


notched up a record $206bn Let's talk about easyJet now. We


have talked about the British tourists who've been stranded in


Egypt. EasyJet flies a lot between Luton and Sharm El-Sheikh. It's


Europe's second largest carrier, it said it had 4,500 down in Sharm


El-Sheikh at the height of the disaster. We'll hear more about what


the boss had to say about that and what her feeling is about it later,


it's all there on the website for you to read.


First, Rajeshni Naidu-Ghelani is in Singapore where the latest data


continues to fuel concerns about the slowing Chinese economy...


The Government's rolled out measures to boost the economy. The data today


shows the Consumer Price Index rose 1.3% in October from a year ago and


that's below forecast slower than the 1.6% rise we saw in September.


Of course, there's still persistent deflation as well in factory gate


prices which fell for the 44th month in a row. So what does all this


mean? Economists say the door is wide-open for more stimulus. It


seems that the measures are not spurring spending because food


prices are fallingthing and there's not enough demand. At this point,


it's really hard to see how Beijing is going to hit that target of about


3% inflation this year. The Chinese perhaps could do more to boost its


economy. The Nikkei slightly up. Hang Seng down. Shanghai having a


difficult session. That is the night before on Wall Street who had a


rough session because of concerns about what it means if interest


rates in the US go up in December. Let's look at Europe. We have had


news from all sorts of companies in Europe, including the likes of


Vodafone. Lufthansa is still embroiled in strike action, but also


Hornby shares caught my attention. Trading in London, they make the


tiny toy trains, down over 7%, their second profits warning in just two


months. Hornby is struggling in the run-up to Christmas, how can that


be? ! That's the European markets behind me, as you can see they are


all higher. Looking ahead to wall To Wall Street, Nada Tawfik is there


for us. There is been a speciality pharmacy faking sales in order to


inflate drug prices. Companies deny the allegations and the Chief


Executive will discuss the company's plans now that it's ended its


relationship. The labour department will put out import and export


prices for October while the commerce department will issue


wholesale inventories for December. We'll get an idea how small


businesses were feeling in October when the small business optimism


index is released, making up the majority of new job creation so


could point to even more growth in the US economy.


Joining us is James Bevan, Chief Investment Officer at CCLA


Investment Management Still to come how much do you like shopping?


What's been the challenge? The real challenge has been when there have


been big problems, people say, excuse me, we need you to bail us


out, everybody thinks this is great and they want someone else to bail


out the problem, this is the global regulator saying, guys, this time


it's going to be different, you are going to have lots of debt,


therefore you don't have to come back to the taxpayer. This is an


announcement made late yesterday and it's all over the business pages


today. Is it enough, does this mean the banks are safe and we won't be


having to bail them out again? It's a step in the right direction. Of


course, what is critically important is that there is enough cash set


aside for bad things that go wrong and it's very difficult to tell what


might next go wrong. After all, the global financial crisis arrives to


this news that there were creeks and strains but there is a dynamic


tension between the banks that want to make money and the regulators


that want safety. Lufthansa is in the middle of a strike which started


last Friday for a week. This is an airline that's lost $140 million


because of pilot strike, it's losing 10 million euros a day because of


this. Can it just keep going? I'm afraid it can. Sales of 32 billions


a year, so it is a huge company, it has 5,000 pilots, it says it doesn't


mind some of them retiring leave. Have they put enough cost


restructuring in place? The consensus is they have probably done


enough. What is going to happen with euro wings, they can't give way on


that, can they contain costs going forward, that's what the strike is


about. You will go through the papers with us later. Can't wait.


Really exciting stuff. Still to come: How much do you like to shop?


Would you believe some people choose their holiday destinations so they


can go shopping. Really? ! Is that you, definitely not me! Bicester


village attracts thousands every year for the shopping.


You're with Business Live from BBC News The chief executive


of Easyjet has called for a tightening of security at certain


airports around the world, in the wake of the suspected bomb attack


Carolyn McCall has been speaking to our business editor Kamal Ahmed.


What else did she say? She was talking about this situation in


Sharm El-Sheikh with the airliners putting global airport security back


in the headlines? Yes, I spoke to Carolyn and she had a big message


for her customers, she did apologise for the frustrations and delays that


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


and Egypt was out of her control but she did pledge to


Ella mac the really big message, as you said, was on the issue of


airport security. I raised that with her when I spoke to her earlier.


Some airport security is very tight and very strict, British airports do


security very well. I think that, there are some other countries that


airlines fly to, where it perhaps needs to be tightened. Do you think


Sharm el-Sheikh is one of those? The government has said quite clearly,


that they need to tighten airport security, they have also said that


Sharm is not the issue but airport security is next to it. Do you agree


with that? I think I do. It is not a blanket message, it is a specific


message about certain airports around the world, this is a global


thing. And I think that passengers will be happy about that and I think


that airlines will support that. She is clearly making a far wider


message about global airline security that goes well beyond the


events in Egypt, and I think these are pretty significant interventions


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


got more details online. How about this one? Indian group sues the


Queen. Over what they say is a stolen diamonds. This is in the


women's addition of the New York Times, this is a group of Bollywood


stars and Indian business people who are suing the Queen apparently. You


are watching business live, the top story is that our British Prime


Minister David Cameron is going to set out his renegotiation with the


European Union, he is going to do it later today. In a letter to The


European Council president Donald Tusk, he is set to press for four


things, restricting benefits to migrants. The Prime Minister says


that reforming PE you will be a big task but not an impossible one. So


there you go. -- reforming the EU. There are few towns that are better


known around the world as a shopping destination than a place to live,


and Bicester Village in the UK is one of them. A small town in


Oxfordshire has got a population of 30,000 people, but it attracts more


than 6 million people a year from all over the world. Why? The calls


they are all heading to Bicester Village, it is a shopping outlet


that has hundreds of designer brands, at discount prices. The


statistics are remarkable, like-for-like sales have grown in


double jujitsu, since it opened 20 years ago. More than half of the


visitors are from overseas, particularly China. The man who


created this global shopping phenomenon, is Scott Markham, an


American, it actually operates nine of them.


It has opened two in China. And one opening very soon. He says that his


entrepreneurial side comes from his family, his father is a real estate


tycoon who owns the Empire State building. He is also the owner of


the New York Islanders professional hockey team. That is one of his


passions. Nice to see you. Let us start with a bit about you, there


are allsorts of retail avenues that you could have gone into. Why the


outlet business model? The business brands and fashion is fascinating,


the way that those brands create value, and interject themselves in


the lives of you and me is what keeps them going. The energy, the


cycle of seasons, the fashion is fundamental to a big part of our


economy. Those brands, it is clear that when they have surplus and the


financial markets expect them to deal with the surplus in a


progressive way, that was the tipping point that allowed projects


like Bicester Village to emerge. White but it is also brutal, anyone


who works in retail will say that you need to have a really thick


skin. You have clearly got a model that works, what we were saying


about like-for-like sales growing every year since you started 20


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


tide. A lot of what we have accomplished has been the brands


themselves growing, what were local and regional brands become Europe


and global brands beyond Europe into China across the world. So we serve


them, we try to halt them in Asia and across Europe, we are now really


a long haul tourism business now, bringing people from across the


world to Bicester Village. White so we are talking about Chanel, Ralph


Lauren, Burberry,. All of those high-end luxury brands that are


mainly based, is that true? So we are based on fashion brands, rather


than high street brands. We are not really in the business of delivering


high Street, we are more the fashion hub and, fashion and retail when


they work they are really about experience and memories. Our


business is about making women happy, I have got four daughters and


that is my training. My dad and you should chat sometimes. Let us talk


about this, China, very interesting, you have been in China for one


year, you have got one in Shanghai, outside, only one year. I am


wondering, is that a bomb in China, given the slowdown? The Chinese


economy overall is growing steadily, not as fast as it did but it is the


fastest-growing economy globally, the key thing of China, is


discovering the openness and opening up to Europe. Travelling across an


incredible digital country, everyone transmits online, and the awareness


of what goes on in the West, transplants to China. So we are


delivering the authentic European experience to China and that really


work. What is your main competitor, is it duty free in airports? Who do


you see as your competitor? Well I think that we are quite a lot about


tourism shopping which relates to airports. We are like terminal six,


like Keith robot without the planes, just the spa and the shops. I would


say that the main competition would be efficiency which is online,


versus experience. So we really complements that. Thank you very


much, that is a very interesting insight into the shopping experience


for the global traveller. Making women happy. I tried. The world's


second-largest operator Vodafone is offering better than expected


figures, until the six months to October. Beating expectations.


Results came in at the time of increased merger activity, talking


exclusively to the BBC, Vodafone chief executive said it had major


concerns about the deal to buy EE. Lure I think storage


Telecom is now becoming the biggest shareholder of BT are clearly trying


to remodel the sector, trying to unwind 30 years of competition. They


have tried to use their own copper network to force older technologies,


slow lanes, to become the way to deliver broadband. I find it


interesting that in the UK you talk about 10 megabits per second, in


southern Europe, in Spain in Portugal, in Italy, it is actually


100, 200, 300 megabits per second. We are going backwards, we are


trying to re-monopolise, they are trying to reduce competition and


choice. Let us get straight into it. We are going to talk about Russia


and the anti-doping, we have seen sponsors already trying to make


murmurs? Yes, this time around, the sponsors saying that we not only


care about the number of people watching, this is all about who is


interested in tuning in. But also are we going to be associated with


the right storyboard? Just quickly, on the airport story, we have had a


lot of tweets about this from viewers, saying that "airport


security should be increased hundred percent no matter what the cost".


"Yes more security but will that not tax the patience of passengers".


What do you think about that? I think it is a tough one, what I have


found fascinating is how resilient people are too these outrages. If


one goes back to the terrible 911 catastrophe actually passenger


numbers got back very quickly. Let us quickly talk about this, a $170


million new deed. There it is. Apparently a Chinese buyer may be.


Your thoughts about an overheated art market? The problem with the art


market, is that supply is truly limited for the masterpieces and


when you have a small amount of people with enormous amounts of


money, they can pay anything. They can. James, always a pleasure. Thank


you very much. Thank you for your company, we will see you soon.




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