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This is Business Live from BBC News with Ben Thompson
Out in the cold - European leaders meet
in Brussels to discuss the UK's role outside the EU
but without David Cameron.Live from London, that's our top story
It could be his final trip to Brussels, but David Cameron says
freedom of movement is a central part of being in the single market.
We will assess the new relationship as the EU prepares for divorce!
Also today, telecoms giant Vodafone considers moving its London
headquarters away from the UK, warning that access
Markets are up sharply after a bumper session yesterday too. So
have the fears really gone away? Or is it just a temporary reprieve?
And we continue our special series speaking to the businesses preparing
But what impact will Britain's exit from the EU mean
The boss of Italian coffee giant Lavazza will be here.
And we'll assess how the world's press are covering the fallout
of Brexit including this story a new dating app that aims
to connect people who share the same view on Britain voting to leave!
The British Prime Minister left out in the cold.
European leaders are meeting today in Brussels without David Cameron.
The leaders of the remaining 27 member states will have informal
discussions over the implications of the UK's vote to leave.
Last night Mr Cameron gave what was probably his last press
conference in Brussels, and outlined some of
The European Union sees the single market as capital, goods and people
and these things go together. And indeed, the European Union sees that
the structural fund payments that are made through the European Union
are again, part of the single market. I think sometimes in Britain
we think of these things as separate options. Very much the sense here is
these things all go together and that if you want the full benefits
of the single market then you need to be involved in every part of it.
Now, that's obviously going to be a huge challenge to try and get that
right for the future. As I said, a challenge for Europe. A challenge
for Britain. Meanwhile German Chancellor,
Angela Merkel, said there would be no negotiations based
on cherry-picking Now yesterday, we discussed
the implications for Germany and its role in shaping
any future trade deal. Remember, the UK is Germany's third
biggest export market. It will be a key player
in any negotiations and compared with Germany it has
a lot less to lose if It exported fewer goods to the UK
last year - $35-billion worth Britain's vote has also given
a boost to far-right parties including France's National Front
which are now demanding their own The National Front's president,
Marine Le Pen, said the UK vote And on economic policy,
France is often seen as an advocate for protectionist measures,
not least the common agricultural policy which provides
billions of dollars Anne-Sylvaine Chassany
is the Paris Bureau Chief Ann thank you for taking time out to
be on Business Live. Just talk us through how Francois Hollande will
try and get his influence in the negotiations. What is France hoping
for, trying to get out of this divorce? Well, I think first of all,
the economic impact on France will be moderate. I think that's the
consensus here. Economists estimate that a UK recession could hurt the
economy by 0.2% or 0.4% on the GDP. So it is modest. It will be
negative, but modest. The political impact will be probably bigger on
French politics. As you mentioned the impact on Marie Le Pen and what
she is going to do in the next presidential elections And that's
next year, it is not far away at all and we are aware of the difficulty
Francois Hollande has got in terms of his popularity, but trying to
push through labour reform, many changes in policy that are not going
down well in France at all. Yes, but in a way, he sees this as an
opportunity, I saw him last night at the EU Summit, he sees an
opportunity to show French voters who are sceptical about the EU and
the euro that leaving the European Union as Marie Le Pen is pushing for
would have disastrous effect on the economy, on you know, on the people
itself when you see, you know, young people, you know, rebelling against
their parents or complaining about an exit. It doesn't look good, it
doesn't help Marie Le Pen down the line and he sees that opportunity to
settle the question of the EU once, you know, for good during the
presidential elections despite, as you said, his abysmal approval
ratings. As you say, the economic impact is expected to be marginal,
but from some points of view, France can benefit. Many are arguing that
investment bankers could be headed to Paris to relocate because of
course, London will no longer be able to work effectively in some
areas of business? Yes, Francois Hollande mentioned that last night
saying that the City of London will now be able to do the clearing, the
euro trade clearing and it is a pretty big activity for the City of
London. So he also, you know, sees an opportunity, an economic
opportunity to strengthen Paris as a financial centre. Obviously, you
know. He is going to have competition with, you know,
Frankfurt and Dublin, but indeed, he is really trying to capture that
part of that fall-out. I'm sure he is.
Thank you so much. The Paris bureau chief at the Financial Times.
Vodafone has warned it could move its headquarters from the UK,
depending on Britain's negotiations to leave the European Union.
In a statement, the telecoms giant says it's important to retain access
to the EU's free "movement of people, capital and goods"
but warned it was too early to "draw any firm conclusions
China's first home-grown airliner has landed in Shanghai
The Comac plane has been in development since 2002
and is China's attempt to break into the aircraft market dominated
China is likely to become one of the world's biggest aircraft
Sally, I'm glad we didn't put the full name in there. The full name
was in an hour or two ago and I stumbled on it! More information on
Vodafone, I'm failing to find more information. That is a big, big
story in the UK. There are more details on the home business page
for the BBC site, on the Business Live page we have got other stories
including how markets in Asia fared today. There is another big story
breaking in Asia today. Now on to Asia, one of the world's
largest car manufacturers, Toyota is recalling 482,000 hybrid
Prius and Lexus cars because of a possible
airbag inflator defect. Explain this recall. It seems we've
talked a lot about it, airbags, recalls, car makers, explain the
latest one? Well, Toyota is recalling more than four million
cars this time. Over two separate flaws. The first has to do with
leaking fuel tanks and the second has to do with airbags that may
crack and injury the car occupants. The airbags involve inflators in
cars which have been parked and unoccupied for a period of time it
is the Prius and Carolla. Toyota didn't specify as well who made the
defective parts of the car, but they said they are not from Dakar ta.
They are the ones responsible for the car industry's biggest ever
recall following multiple deaths and injuries with deadly airbags.
Thank you very much. And frankly
Take a look at the markets at yesterday's close and this
morning's open and you'd think there wasn't a lot going on.
Even, something to get excited about.
There was a strong rebound yesterday helped by the reassessment
that the risks might not be as bad as many had feared.
No immediate rush to trigger that Article 50 that would kick-start
So that could mean that, in the short-term at
That said, longer-term, there's still a huge
But it does mean markets have a bit more time to assess
what's actually going on, rather than the knee-jerk volatility
The FTSE up 1.5%. In the longer term there are still risks.
We will assess that in more detail in a moment.
We'll assess that more in a moment, but here's Michelle with a look
There are a couple of big names reporting earnings. Month Santa
turns in its third quarter results later this Wednesday. For
shareholders, the focus will be on a German take-over which it turned
down last month. If any deal went ahead, it would be the third seed
and chemical industry merger this year. Changing consumer habits are
expected to dent profits at General Mills. Healthier eating habits are
expected to have hit sales at the maker of cheer yos cereal and
Yoplait yoghurt. And encouraging economic news boosted US financial
markets on Tuesday. This Wednesday, watch out for May's pending home
sales and consumer spending data. Global Market Strategist
at JP Morgan Asset Management. Before we talk about the States,
give us your take on this, up and up and up. It is good to see a bit of
green on the screens after the past few days have been very bad for
markets. I would say this is probably not a big sign of massive
rebound. The Brexit uncertainties will still remain, we have been
seeing through the news things keep developing politically and
economically in term of trade negotiations and how it all works,
it is good to see a bit of recovery after the bad Friday and Monday, but
I wouldn't say we're out of the woods yet. That's Europe. Let's look
at the US because we're looking at the global implications of this and
one thing that may or may not be related, let's talk about US
interest rates, we get excite about what the Fed thinks? It is tough for
the Fed because they are supposed to look at the US economy in term of
employment and inflation and those two aspects are doing well for the
US, it is the big global concerns, a massive amount of volatility and
markets selling off which makes the Fed pause for breath. We have seen
actually in the past few days interest rate expectations for the
Fed to start hiking rates be pushed back further and further. Now, they
are all data dependant, they will be looking at the world to see if
they're ready, but in time we have to see what Janet Yellen and her
team think. For now, thank you. She will be back soon to talk
through the papers. Still to come, wake up
and smell the coffee. As Britain and Europe adjusts
to idea of life outside of Europe, the boss of Italian coffee giant
Lavazza will be here to discuss the implications for business,
exports and our love of coffee. You're with Business
Live from BBC News. Before the referendum,
we heard that the price of electrical goods would go up
if we voted to leave the EU. That's what the boss of electrical
and mobile phone retailer Well, what does he
think after the vote? Sebastian James, the Chief Executive
of Dixons Carphone has been speaking Well, it is very hard to say, it is
obviously early days and my view is I think pretty straightforward,
which is we need to be grown-ups and we need to carry on. I think in the
last five days, we haven't seen any material change in the way customers
are behaving. So no decline in spend on the weekend? No, so far we are
up, soap so far so good and in our view it is very important that we do
everything we can to remain in the market and service customer survey
continue to buy for us. And opening new stores, life goes on?
Absolutely, we have huge plans ahead and we have just come out of the
year where we reported 17% earnings growth, record profitability and we
are an incredibly strong placed on which to build. Whatever the market
throws at us, we have an incredibly good track record in the market of
weathering storm is coming out of them stronger. So no change to your
investment plans? We have to keep an eye on what is going on in the world
but at the moment, absolutely no plans to change anything we are
doing. We have lots of investment here and in the US and in
continental Europe and we will continue to do those things. We have
seen when the markets fell, a rush to safe havens like the yen, you
import from Japan... Alice is different, it is different to other
industries, televisions that cost ?1000 less year can cost you ?,500
this year. It is emerging all the time. I don't know if it will feel
different, because we can't compare with what it would be like if Brexit
hadn't happened and my job is to work with suppliers and all of our
stores and pay costs as tight as we can so we continue to give the best
deals to our customers. That was the boss of Dixons Carphone
speaking to our business editor. I promised more information on
Vodafone on the website, then it is, read all about it.
Our top story today, European leaders are meeting in Brussels.
They are discussing the implications of a UK
outside of the EU, but without
The relief rally on financial markets continues today, this is how
Europe is trading right now. How long will it last? We will be across
every twist and turn. We've heard from British
businesses about how leaving the EU could impact them -
but what would happen Lavazza is Italy's best
selling coffee brand. It was established in 1895
in the city of Turin, and it has been owned by the same
family for four generations. It's the world's sixth biggest
coffee roaster by sales and has operations in more than 90
countries around the world. Last year, it had
a turnover of $1.6 billion. It is a brand that many know very
well indeed. Giuseppe Lavazza, the vice chair
of Lavazza Group, joins us now. He said that beautifully. Bidder
Sally get that right? Yes, very well, perfect.
We must talk to initially about the situation with regard to the UK's
decision. The UK market is very important to your company, isn't it?
Absolutely, one of the most important countries and we
established our subsidiary a long time ago. I personally established
it in 1990 and it is one of the top markets for Lavazza. So what does it
mean for your business? In the short term, we have to try and mitigate
the impact, for example the immolation of the pound, but in the
long term, the Lavazza company is very committed to carrying out
business as usual, of course, investing in the country, the
relationship with the British market is very strong, we are investing in
a lot of big brands in the UK, the product is very successful. We want
to grow much more in the UK and of course, we are launching new
products, so the plan has a different scenario and we have do
try to adapt as usual. What do you think about day-to-day? We talk
about big issues and there are still a lot of unknowns and uncertainty in
the long term but what you do on a practical level? Are there things
you can do to mitigate this? First of all, we have to implement our
contingency plan to mitigate the event of the devaluation of the
pound, because it will have an impact. So we have to risk protect
the initiative and keep the business sustainable long-term and keep
continuing to invest. So we need the reserves. It is a family business,
we are not listed, we have do use our own resources. So we have to do
that first. Secondly, we have to follow very carefully the
development of the negotiation between the UK and Europe Anne Fine
if there is some potential risk in the trading relationship -- and
five. For the food and wine industry, Italian and UK, is a very
important market. It is about 2.8 billion of exports in 2015 and the
potential cost of this renegotiation for our system could be around 3
billion euros. Is one strength for you the fact that you are so
diversify as a company in terms of weight you export to and who drinks
your copy? The US is a very important market, France, Germany,
Italy is of course your key market but interestingly, China doesn't
feature at all. Apparently they haven't got a taste for coffee. You
are right. The big issue for a company like Lavazza which is very
linked to copy is to try and adapt the copy to the local needs --
Coffey. More and more, you need a more personal individual kind of
product for different consumers. So Asia is very different from Europe
and the US, because the taste is different. We have an operation for
example in India, that we started in 2007 and the coffee over their is
not so strong, not growing quite a lot, but China is a different
scenario, you need a very specific product to be successful there and a
good route market. There is talk briefly about you, the fourth
generation to lead this company. Was there pressure on you to do this or
has it been your lifelong love? No pressure, it is an absolute free
choice. This was not the same story for the second generation, the third
generation, they were forced to join a company. For me, it was different.
I had a different attitude. I wanted to help my father in the business,
to have a try and after two or three years, I totally fell in love with
the company, with the coffee, with the business, so I decided to say.
What is your favourite drink? The short espresso. Will you come back,
we have run out of time? Absolutely. Thank you so much for coming in. So
much more to discuss, but we have to move on.
We do and we will stay with that theme.
The UK's vote to leave the EU has been greeted with shock by many
Some warn the UK's departure could lead
to the disintegration of the EU itself.
Others have seen it as a signal that far-reaching reforms
He's the former chief economist of the European Central Bank
and seen by some as one of the architects of the Euro itself.
and seen by some as one of the architects of the euro itself.
He spoke to our colleague, Theo Leggett.
I think the idea of a two speed Europe never died
and the UK was always, let's say, half in and half out
in the past and this cream skimming has some attractiveness.
So against this background, I really don't understand why the UK
has not gone the way to exploit this situation to their advantage.
But they are thinking, I think, this is needed,
but it would be more than a nightmare, a catastrophe,
if this would be the start of the collapse of
Very interesting to get his take on what is going on at the moment.
Let's have a look at the papers. Lots of good stories about the
implications of the Brexit Road. Let's talk about what we stalked
Mike Berry about at the start is -- talked about at the start of the
programme. Backdating app, it is about sharing that feeling of loss
and bringing like-minded people together. The Brexit debate, whether
you were on either side, in the canteen, the pub, on the chut, it
has sparked a lot of vibrant discussion and so to have people
feeling the same way about things are connecting people... I think
this is just an excuse to launch another dating app.
Maybe it is an integral thing, your political views will dictate your
choice of partner. I wonder if people who voted differently in
couples, it could be interesting... That is a whole debate. Families
have been on polar opposite sides of this debate and the divisions it has
created, people would never have assumed before and that is
interesting. Can we move on? Let's talk about
Rolls-Royce. Familiar territory to me. Let's talk about the
implications, this article in the Telegraph. It is a bit of a balance
for companies like Rolls-Royce, when you have slower global growth and
slower UK economy at the Brexit and thinking about that a man feel
product going down, it is a challenge for profits. Then you have
the pound which has fallen ten plus percent in the last few days, making
what you are selling to the rest of the world as much more competitive
and when you translated back into pounds in the UK, you have a pretty
good profit situation. The article does point out a couple of
challenges and a couple of benefits of Brexit and says Rolls-Royce might
be obeyed. Challenges the you add JP Morgan? -- might be OK. Every day,
we monitor and we have very intelligent management teams figured
out the next state of play. It has been good having you, Nandini. It
really is that issue for businesses around the world to assess what it
means for them, what their plans next and how they can deal with
them. In the short term, we have seen markets rising pretty sharply,
the FTSE still up in early trading. We are back this time tomorrow,
thank you for being with us today and we will see you then.