:00:08. > :00:09.This is Business Live from BBC News with Victoria Fritz and
:00:10. > :00:16.Will a deal be done to keep Britain in the European Union?
:00:17. > :00:19.After the first day of a summit in Brussels ended without agreement,
:00:20. > :00:24.to be done. Council says much work remains
:00:25. > :00:41.Live from London, that's our top story Friday 19th February.
:00:42. > :00:46.Would Britain's exports really suffer if it left the EU?
:00:47. > :00:49.We continue the business debate over Brexit.
:00:50. > :00:57.Also in the programme, the car-hire app Uber is losing
:00:58. > :01:00.a billion dollars a year in China, so says the CEO.
:01:01. > :01:06.And as always, we'll bring you all the latest
:01:07. > :01:08.from the financial markets with a mixed.
:01:09. > :01:13.And we'll be getting the inside track on the fluctuations
:01:14. > :01:15.in the oil market, we're also going to be talking
:01:16. > :01:17.about Norway having to dip into its savings pot.
:01:18. > :01:20.Joining the ranks of Saudi Arabia and Russia all because they ain't
:01:21. > :01:29.making as much money from oil nowadays.
:01:30. > :01:31.And as HSBC unveils its new voice and fingerprint technology,
:01:32. > :01:35.What do you think about the potential demise
:01:36. > :01:38.Would you miss it or be overjoyed at its demise?
:01:39. > :01:51.We start once again with the big debate over Brexit,
:01:52. > :01:56.is Britain's future inside or outside the European Union?
:01:57. > :01:58.As negotiations continue in Brussels we are focusing
:01:59. > :02:02.Among the many thorny issues, it's perhaps the one that affects
:02:03. > :02:04.businesses the most and it's been the subject
:02:05. > :02:12.Pro-EU campaigners say leaving the EU would be catastrophic,
:02:13. > :02:18.But the pro-Brexit lobby says that is mere scaremongering.
:02:19. > :02:22.Let's show you some of the numbers involved.
:02:23. > :02:26.At the moment, as a bloc, the EU represents Britain's biggest
:02:27. > :02:27.trading partner, accounting for around half
:02:28. > :02:32.EU membership gives Britain easy access to the markets of the 27
:02:33. > :02:39.But also to 68 other nations via free trade deals they hold
:02:40. > :02:48.In all, that trade is worth a total of 670 billion dollars to the UK,
:02:49. > :02:50.according to research compiled for the pro-EU lobby.
:02:51. > :02:51.Now, pro-Brexit campaigners argue that of course,
:02:52. > :02:59.Britain will continue to do business with all of those countries
:03:00. > :03:02.and will negotiate new and even better trade terms with them.
:03:03. > :03:05.To avoid losing out though it would have to agree at least 35
:03:06. > :03:16.separate trade agreements in a short space of time.
:03:17. > :03:18.Uwe Combuchen is the Director-General of
:03:19. > :03:19.the Brussels-based manufacturers' association CEEMET.
:03:20. > :03:24.We're also joined by John Elliott, founder and chairman of the white
:03:25. > :03:52.If Britain leaves the EU, is that it? Is that a catastrophe for
:03:53. > :04:01.British business? Thank you very much for inviting us. CEEMET Is in
:04:02. > :04:07.the technology based industry. Yes, to reply, it would be a catastrophe,
:04:08. > :04:14.lose, lose not only for EU manufacturers that manufacturers in
:04:15. > :04:24.the UK. There is a lot of talk and a lot of emotions floated at the
:04:25. > :04:30.moment. A lot of myth created. It would be an unfortunate situation if
:04:31. > :04:33.we took this decision, if we took this decision to make it fit for the
:04:34. > :04:39.future it would take this decision on the basis of such assumptions.
:04:40. > :04:44.That is why we commissioned a study, academic research, work which shows
:04:45. > :04:48.that the effect of the Brexit would be lose -lose situation for
:04:49. > :04:54.manufacturers in all countries. Negative effect on trade, foreign
:04:55. > :04:56.direct investment and extremely on productivity particularly for small
:04:57. > :05:08.and medium-size businesses. I have your point, Uwe. There is a lot of
:05:09. > :05:13.uncertainty. Nobody really knows. You are a business that contributes
:05:14. > :05:18.to this X hundred and $70 billion that probably comes into the UK,
:05:19. > :05:25.John. When we lose that kind of money? -- this $270 billion. I agree
:05:26. > :05:30.totally. If you give two politicians and economists exactly the same
:05:31. > :05:36.stats, they will prove something different. Look at it conceptually?
:05:37. > :05:42.Is it a good idea? It does not make us better off, it is a failed
:05:43. > :05:46.experiment. It adds cost, bureaucracy and more politicians. It
:05:47. > :05:51.hasn't worked so far. It will never work. The best thing to do is
:05:52. > :05:57.negotiate our way out of it. Uwe, Victoria here, in the UK, small
:05:58. > :06:01.businesses account for about 80% of all economic growth, they are tired
:06:02. > :06:07.and frustrated and disappointed and immobilised at a system that doesn't
:06:08. > :06:11.work for them, they say. Isn't it reform within the EU rather than
:06:12. > :06:17.Britain's relationship with it that is needed? I totally agree. The UK
:06:18. > :06:23.should be needing this reform in the European Union. We have seen that
:06:24. > :06:27.competitiveness should be at the top of the argument and here we see also
:06:28. > :06:31.some positive sites and concrete signs from the European Commission,
:06:32. > :06:36.for example, that they nominated a first vice president in regulation
:06:37. > :06:41.response about this issue. In May, last year, he presented an important
:06:42. > :06:47.and promising better regulation package and a refit agenda. A
:06:48. > :06:51.stakeholder platform where stakeholders have the opportunity to
:06:52. > :06:59.contribute to showing where legislation is adding red that has
:07:00. > :07:04.to be cut. Also, how to improve forthcoming legislation. Is there a
:07:05. > :07:14.need? Should we simplify existing legislation. S M Es are affected by
:07:15. > :07:17.this and we invite you to contribute to this discussion and do it from
:07:18. > :07:22.within the European Union rather than outside the European Union. In
:07:23. > :07:27.the introduction, you mentioned the effects, positive points of
:07:28. > :07:31.membership of the European Union from a business perspective, which
:07:32. > :07:35.is a single market, vast single market. Also, leveraging trade
:07:36. > :07:45.negotiations currently underway with regard to China. There are massive
:07:46. > :07:50.positive signs from inside. Finally... Uwe sorry, we will have
:07:51. > :07:57.to jump in there, we are running out of time. John, if Britain is out,
:07:58. > :08:02.you will have to make all of these agreements, I know you don't like
:08:03. > :08:06.the numbers but some suggest you need to make agreement with 35
:08:07. > :08:10.other... Fine what other organisation needs to make an
:08:11. > :08:16.agreement with 27 other countries? Should we sell French wine or Scotch
:08:17. > :08:20.whiskey? How can one organisation to side for 27 different economies, we
:08:21. > :08:24.will do better ourselves. Most country in the world are outside the
:08:25. > :08:28.EEA and have done better -- most countries. We would be better off
:08:29. > :08:34.looking at the world globally -- outside the EU. We did talk about
:08:35. > :08:41.this, as you both know, for a lot longer. The clock is ticking. Uwe
:08:42. > :08:45.And John, thank you very much for joining us on business life.
:08:46. > :08:49.Today is the deadline for US drone owners to register
:08:50. > :08:53.with the Federal Aviation Administration.
:08:54. > :08:56.In 2015, more than four million drones were sold around the world,
:08:57. > :09:01.forcing regulators to take measures to protect safety and privacy.
:09:02. > :09:13.That's just Aaron. That number of drones going on around the worlds.
:09:14. > :09:16.Italian luxury brand Gucci reported a 5% increase in sales for the last
:09:17. > :09:19.Results for the company came in above analysts' expectations,
:09:20. > :09:21.despite fears that a slowdown in China would hurt
:09:22. > :09:41.A quick look at the tablets, Uwe could talk, couldn't he? I thought I
:09:42. > :09:47.did a good job! Uwe Can really talk. Talking about a man talking, Mario
:09:48. > :09:53.Monti says leave the EU and become a big island. Former Italian Prime
:09:54. > :09:55.Minister. Some of the comments coming out from our colleagues in
:09:56. > :09:59.radio this morning, the debate radio this morning, the debate
:10:00. > :10:03.really is whether or not we should protect producers or consumers.
:10:04. > :10:12.Seems to be a debate opening up. This will go on and on. We just
:10:13. > :10:18.mentioned Gucci sales, somewhat vague good news story for the luxury
:10:19. > :10:21.market, so much concern among those luxury providers or producers, that
:10:22. > :10:28.they would take big hits with the Chinese slowdown. Less spending.
:10:29. > :10:37.There you go. Let's find out what is happening with Uber. Making big
:10:38. > :10:45.losses Uber. , very careless of them. $1 billion per year. Hello,
:10:46. > :10:51.Tim, he is in Singapore. I was expecting a female. How is Uber
:10:52. > :10:58.losing money when Uber really doesn't own any thing? It is
:10:59. > :11:01.interesting, we are so used to hear how much money investors have tipped
:11:02. > :11:08.into Uber and how it is the world's most valuable start up. In some
:11:09. > :11:12.markets it is the Redditch it issues or tax opposition but in China it is
:11:13. > :11:18.competition that is posing the challenge. Guba operates in 40
:11:19. > :11:23.Chinese cities -- Uber operates. It is losing $1 billion per year
:11:24. > :11:29.because of a really fierce local rival. Uber Says it is unprofitable
:11:30. > :11:36.and it is trying to elbow out competition. They say it is bigger
:11:37. > :11:41.and it has a better network in China. It is now past the break even
:11:42. > :11:47.point in more than half of the 400 cities it operates in, in China.
:11:48. > :11:52.There will be fierce competition for some time to come in that market.
:11:53. > :11:55.The end of a three-day win streak for Wall Street and a slide in oil
:11:56. > :11:58.prices sent Asian markets into retreat, but not by enough
:11:59. > :12:02.Japanese shares were the hardest hit as the yen strengthened
:12:03. > :12:12.Over in Europe, this is how markets have opened this morning.
:12:13. > :12:19.Not great. The FTSE 100 Anita down a fraction. Let's head over to the US.
:12:20. > :12:21.Let's head over to the US and hear from Michelle Fleury
:12:22. > :12:24.about what will making the headlines in the business world
:12:25. > :12:34.One sign that has been elusive so far and would show the economy is
:12:35. > :12:36.returning to health is inflation. The US Labor Department releases its
:12:37. > :12:41.latest consumer price index for January on Friday. The big drop in
:12:42. > :12:47.energy prices, the data could show a slight decline in overall prices.
:12:48. > :12:53.The call number which strips out volatile food and energy prices
:12:54. > :12:58.should show moderate increases. Good news with the consumer Price index
:12:59. > :13:03.eking out a modest 0.1% gain, the Fed may want to see further progress
:13:04. > :13:07.but Ford continues to raise rates. Also out this Friday, first-quarter
:13:08. > :13:13.earnings from agriculture and construction equipment making.
:13:14. > :13:16.Joining us is Justin Urquhart-Stewart, Co-Founder
:13:17. > :13:20.Director of Seven Investment Management.
:13:21. > :13:29.Let's start on something you have been working on, little birdie tells
:13:30. > :13:32.us. Negative interest rates. I knew there were a handful of central
:13:33. > :13:37.banks but a bit more than that at the moment. About 25 countries would
:13:38. > :13:42.seem to have, in terms of value, the economy is negative interest rate in
:13:43. > :13:47.some form or another in some of their bronze. Negative interest
:13:48. > :13:52.rate, at its most illogical, but ?1000 into a bank and you get less
:13:53. > :13:58.coming back out. For the uninitiated watching around the world, the
:13:59. > :14:04.central banks are saying don't give us your money, we will charge you if
:14:05. > :14:08.you do this can be reflected in certain kinds of government bonds.
:14:09. > :14:12.Why would you buy a negative government bond? You don't think it
:14:13. > :14:17.will get worse, at least you will get something back, you think. The
:14:18. > :14:21.other issue, central banks trying to say, here we are, trying to get the
:14:22. > :14:28.economy moving again, we will make the rates even cheaper. The theory
:14:29. > :14:34.is that it will work but that is not always the case. If it is as cheap
:14:35. > :14:38.as this, I won't spend anything at all. People aren't buying government
:14:39. > :14:45.bonds, the only people who benefit from this are good mattress
:14:46. > :14:52.producers. Before you go, we are seeing a lot of volatility in the
:14:53. > :14:56.pound. Also falls in the FTSE 100 and big banks like Goldman Sachs
:14:57. > :15:01.backing the campaign to stay in the EU, how much concern is that in the
:15:02. > :15:06.financial markets of the threat of Brexit? There is concern that
:15:07. > :15:09.separate out. Will it affect the main stock markets? No, the FTSE 100
:15:10. > :15:14.is a global market as much as anything else.
:15:15. > :15:21.Sterling is likely to be hurt by that or adjusted by that. Maybe
:15:22. > :15:26.considerably. Then with that you then have Government debt, as well.
:15:27. > :15:30.If sterling weakens, therefore, you find imports getting more expensive.
:15:31. > :15:34.Some exports probably better value. There we go. Justin, you will come
:15:35. > :15:40.back to take us through the newspapers. See you shortly. Still
:15:41. > :15:44.to come, our economics correspondent is going to take us through the
:15:45. > :15:45.latest turmoil in the oil markets. You are with Business Live from BBC
:15:46. > :15:52.News. Millions of UK bank customers
:15:53. > :15:54.will soon be able to access their accounts using voice
:15:55. > :15:56.recognition and fingerprint technology in a major rollout
:15:57. > :15:58.of biometric banking. HSBC says the development means
:15:59. > :16:00.people will no longer have to remember a password
:16:01. > :16:03.when they log on online, First Direct customers will be
:16:04. > :16:08.offered the service within the next few weeks, while those who bank
:16:09. > :16:12.with HSBC will be able to use it It means customers -
:16:13. > :16:15.if they choose to use it - will no longer have
:16:16. > :16:28.to use passwords. All our voices are unique and there
:16:29. > :16:32.are about 100 characteristics, half are physical, the other half are
:16:33. > :16:35.behavioural characteristics. So by measuring all those characteristics
:16:36. > :16:41.the system can determine your voice is really yours. Great, let's do it.
:16:42. > :16:44.So how would it fare in somewhere like this, a busy office maybe or
:16:45. > :16:49.how about the BBC newsroom? Let's find out. Hello, this is Ben
:16:50. > :16:56.Thompson. Hopefully this is going to verify my voice for the test of the
:16:57. > :17:02.voice recognition system and will let me into my bank account. That
:17:03. > :17:05.worked. How about somewhere with this with background noise that
:17:06. > :17:09.could distort my voice. This is Ben... The really noisy one worked,
:17:10. > :17:14.as well. What if someone is trying to get access to my bank account who
:17:15. > :17:19.isn't me? Look who I have run into. Simon, let's see if you can get into
:17:20. > :17:24.my bank account. My name is Ben than son. I would like to transfer all
:17:25. > :17:33.funds in my account to the account of Simon McCoy. Not sure it's going
:17:34. > :17:39.very well. It seems to work. Let's move on to other stories. ASDA has
:17:40. > :17:42.seen its biggest drop in sales ever as the UK supermarket price war
:17:43. > :17:47.rages on. ASDA says sales have dropped by 5. 8% in the final
:17:48. > :17:51.quarter of last year after it was hit by rivals' heavy promotions on
:17:52. > :17:56.beer and wine and fresh produce. The rise of the likes of Lidl and Aldi
:17:57. > :18:00.continues to be a major problem for traditional high street names.
:18:01. > :18:03.Looking at some numbers, it's staggering what's going on at the
:18:04. > :18:06.moment. Some of the comments. I guess, lots of the analysts saying
:18:07. > :18:10.the strategy for ASDA isn't working at the moment. They're saying that
:18:11. > :18:15.the option not to go into things like the black Friday sales, for
:18:16. > :18:20.example, have really come back to bite them. Compared to the year
:18:21. > :18:31.before. When people went crazy for a telly. Unbelievable.
:18:32. > :18:37.Our top story: In or out. Discussions in Brussels continue,
:18:38. > :18:40.kind of going to the wire. We are looking at the question would
:18:41. > :18:45.British trade suffer if it did come to a Brexit? In the meantime, let's
:18:46. > :18:50.get the inside track on the oil markets. It's been a busy week for
:18:51. > :18:53.the oil markets. In recent months we have seen the plunging price of
:18:54. > :18:57.crude taking a heavy toll on governments and oil companies around
:18:58. > :19:01.the world. This week there's been developments which suggest that the
:19:02. > :19:06.slide in wholesale prices might be coming to an end.
:19:07. > :19:11.Russia and Saudi Arabia have formed plans to freeze their supply to
:19:12. > :19:20.global markets while an industry report has shown a surprise drop in
:19:21. > :19:23.US inventories. Let's go straight to Andrew now and
:19:24. > :19:27.can explain it better than some of that.
:19:28. > :19:32.Andrew, good to see you, our economics correspondent.
:19:33. > :19:36.At the beginning we had the meeting. Before the meeting oil price went up
:19:37. > :19:41.because... Then it went down. Everybody was not going to come on
:19:42. > :19:44.board. When the markets saw the conclusion of the meeting they took
:19:45. > :19:49.the view it might not come to anything very much. The conclusion
:19:50. > :19:56.was we freeze at January levels, don't cut. Freeze, provided others
:19:57. > :20:01.do like Wise. Others being mainly Iran and Iraq? Those are the really
:20:02. > :20:04.big ones, especially an issue with Iran. Iraq has already ramped
:20:05. > :20:08.production up substantially, producing something in excess of
:20:09. > :20:15.four million barrels a day. Historically Iran has tended to see
:20:16. > :20:20.itself as a kind of - on a par with Iraq at least. They're producing a
:20:21. > :20:25.good deal less. Something like more than a quarter below what Iraq is
:20:26. > :20:29.producing. Of course, as Iran emerges from sanctions it's been an
:20:30. > :20:32.absolute given that they would want to take advantage and start
:20:33. > :20:40.producing more oil, selling more oil. The Iranian finance Minister
:20:41. > :20:50.has been saying things that are vaguely supportive of the initiative
:20:51. > :20:53.taken by the Saudis, the Russians and Venezuelans, but no commitment
:20:54. > :20:59.Iran would take part. It's safe to assume Iran is going to take
:21:00. > :21:03.advantage. OK. An agreement without all is in this case not an agreement
:21:04. > :21:10.at all? It is striking in this episode of falling oil prices, which
:21:11. > :21:17.really began back in June 2014, this is the first real tentative stirring
:21:18. > :21:19.we have seen by producers at trying to take some co-ordinated action. We
:21:20. > :21:23.have had meetings where you might have expected them to do something,
:21:24. > :21:32.they have not. Norway, we have seen they have not. Norway, we have seen
:21:33. > :21:39.Russia, and Saudi Arabia with oil price dipping into - Norway might be
:21:40. > :21:43.dipping. It's worth about $800 billion. The Central Bank governor,
:21:44. > :21:48.they're the ones who manage the fund, has been saying he reckon the
:21:49. > :21:55.value might have peaked now. And he expects the Government to dip into
:21:56. > :22:00.the tune of something like nine, ten billion dollars this year. They do
:22:01. > :22:06.say they don't think at this stage they're going to have to sell assets
:22:07. > :22:10.to generate this cash flow because asset sales by other Sovereign well
:22:11. > :22:13.funds has been one of the things contributing to the volatility in
:22:14. > :22:17.stock markets. They reckon in Norway they'll probably be able to do it by
:22:18. > :22:20.finding cash out of dividends and so forth. Still it's a striking
:22:21. > :22:27.development. We knew they would dip into it at some stage but it's been
:22:28. > :22:35.sooner than we expected. Andrew, thank you very much. Now starting
:22:36. > :22:40.with a few things, here is how to contact us.
:22:41. > :22:43.We will keep you up to date with all the latest details with insight and
:22:44. > :22:49.analysis from the BBC's team of editors right around the world.
:22:50. > :22:58.We want to hear from you too. Get involved on the BBC business
:22:59. > :23:02.live web page. We are on Twitter and Facebook.
:23:03. > :23:09.Business Live on TV and online, whenever you need to know.
:23:10. > :23:15.We have Justin back and we will have a quick look at some stories making
:23:16. > :23:20.the business headlines. I want to talk to you again about what's going
:23:21. > :23:27.on with HSBC and this voice recognition. We saw this story about
:23:28. > :23:31.Ben showing us that it tuz work. I am sceptical about this. Because
:23:32. > :23:35.most voice recognition technology, you end up with people being angry
:23:36. > :23:42.shouting at devices. You will have to test it on Jon Culshaw, an
:23:43. > :23:47.impersonator and see if he can test it. It's whether it is fingerprints,
:23:48. > :23:51.whether it's the voice. We have bad enough trouble with the supermarket,
:23:52. > :23:56.at least I do. Unexpected item in the bagging area. I have an argument
:23:57. > :24:00.with an inanimate object and expect it to speak to me. I get worked up
:24:01. > :24:04.with it. I am sure it will work most of the time, except when you really
:24:05. > :24:07.want it to work and you are under pressure. You are probably trying to
:24:08. > :24:11.do something else at the same time and it's not working. At that stage
:24:12. > :24:21.what do you want to do? Speak to somebody. It will be like one of
:24:22. > :24:27.those, when voice recognition, find me Victoria's address and find me
:24:28. > :24:32.Bob's address? No! It makes you wonder what he does in his spare
:24:33. > :24:38.time! Let's move on, shall we. A story in the FT, this is the art
:24:39. > :24:41.market. Apparently the big auction houses are facing a shortage of
:24:42. > :24:47.masterpieces and it's a real problem for them. I have offered them all I
:24:48. > :24:55.possibly can, I have none left! The walls are empty. It wasn't too long
:24:56. > :25:00.ago when we had both Sothebies and Christies were being convicted for
:25:01. > :25:05.illegally fixing the prices and so I am always suspicious. They make
:25:06. > :25:09.money on the way in and the way out. Now you have a competition called
:25:10. > :25:14.online. People can find commissions are cheaper and it's easy to use and
:25:15. > :25:19.you don't go through the show. So also there is a change going on. In
:25:20. > :25:23.China they don't want all these smart western goods, they want
:25:24. > :25:26.Chinese goods and so the demand for these really is beginning to come
:25:27. > :25:31.off and people realise I am not spending that fee for that sort of
:25:32. > :25:35.service. As an investment, it has waned a little. It was big in the
:25:36. > :25:43.financial crisis. People like a solid asset to deal with. It's not
:25:44. > :25:47.very liquid. Therefore No time for the third money. Doesn't
:25:48. > :25:55.Have a great weekend. Always a pleasure. That's it from us today.
:25:56. > :25:57.More business news throughout the day and the web page and World News.
:25:58. > :26:13.See you soon. Have a lovely weekend. Hello. We start the morning on a
:26:14. > :26:15.cold, frosty start and bright with sunshine but gradually clouds
:26:16. > :26:20.increasing across western areas and will bring wet and windy weather
:26:21. > :26:21.across the UK. We could see gales across coastal areas