:00:00. > :00:08.This is Business Live with Victoria Fritz and Sally Bundock.
:00:09. > :00:12.Just a week on from that vote to leave the European Union, Paris,
:00:13. > :00:16.Frankfurt and Dublin look to lure financial firms away from London,
:00:17. > :00:21.as lobbyists from the UK's financial engine scramble to steady the ship.
:00:22. > :00:45.Live from London, that's our top story on Friday, 1 July.
:00:46. > :00:50.The Brexit balls keep on moving. Global stocks rise again as the Bank
:00:51. > :00:51.of England hints more stimulus measures.
:00:52. > :01:04.The electric car made by Tesla is investigated after a fatal crash.
:01:05. > :01:05.And the latest from the markets. You can see them rising yet again after
:01:06. > :01:07.those promises made by Mark Carney. And we hear from the chief executive
:01:08. > :01:18.of Royal Dutch Shell. He says he is eager for the UK to
:01:19. > :01:23.retain access to the single market. Plus, one week on from Brexit, what
:01:24. > :01:27.are your questions about this historic decision? Kamal Ahmed will
:01:28. > :01:34.be here to answer them for you. Just send them in.
:01:35. > :01:40.The UK's decision to leave the EU could potentially have a huge impact
:01:41. > :01:43.on the City of London, which is Europe's biggest
:01:44. > :01:51.Almost 415,000 people work in the City.
:01:52. > :01:53.An additional 150,000 jobs are in nearby Canary Wharf,
:01:54. > :01:58.where many big international banks are based.
:01:59. > :02:03.France's President Francois Hollande has warned that leaving the EU means
:02:04. > :02:06.London would need to give up its role in processing euro
:02:07. > :02:11.currency transactions, worth hundreds of billions of euros.
:02:12. > :02:17.Euro clearing services would likely move to Paris and Frankfurt.
:02:18. > :02:21.And if Britain ends up outside Europe's single market,
:02:22. > :02:24.UK-based banks could also lose their so-called
:02:25. > :02:28.passporting rights, which let them sell financial
:02:29. > :02:33.If this happens, London banks would then need to move
:02:34. > :02:38.staff into the eurozone to serve customers there.
:02:39. > :02:46.Our economics editor, Kamal Ahmed, joins us now.
:02:47. > :02:52.Almost immediately after we heard about this decision, we were hearing
:02:53. > :03:00.rumours about banks relocating people. Any bank, whether it is
:03:01. > :03:07.based in the UK, the US or Asia, has something in London. What does this
:03:08. > :03:11.mean? At the moment we can't be very clear about what the relationship
:03:12. > :03:14.will be between the UK and the European Union in terms of trade
:03:15. > :03:20.relationships. Nothing has actually changed. A number of banks, JP
:03:21. > :03:27.Morgan HSBC, have said they may need to move some operations into the
:03:28. > :03:32.euro error -- area, if Britain gets no kind of single market agreement.
:03:33. > :03:39.London is an incredibly powerful global market. And it is a
:03:40. > :03:46.competitor to Singapore, Hong Kong and New York. It is much larger than
:03:47. > :03:50.Frankfurt or Paris. This is all about markets. It is about where
:03:51. > :03:54.businesses in Europe and in the UK can find the cheapest capital. They
:03:55. > :04:00.want markets which are the deepest and the most functioning. There was
:04:01. > :04:03.a movement in the 1990s to move some transactions work to Frankfurt. It
:04:04. > :04:08.all moved back to London because in London there are far more
:04:09. > :04:12.counterparties. You can borrow more cheaply in London because there is a
:04:13. > :04:17.deeper market. Anyone who has been to Paris or Frankfurt will no that
:04:18. > :04:23.in size terms they are tiny compared to London. Although there is
:04:24. > :04:27.nervousness and concern, London's size at the moment is much more
:04:28. > :04:33.advantageous than maybe some of the reporting suggests. Also, there is a
:04:34. > :04:39.very strange and perhaps double-edged sword in terms of
:04:40. > :04:43.bankers bonuses. The British government lobbied unsuccessfully to
:04:44. > :04:46.get rid of the EU bonus capped. If Britain was to leave the EU, it
:04:47. > :04:50.could scrap that world altogether and presumably money talks, people
:04:51. > :04:56.will stay if they think they will be paid more? Absolutely right. Money
:04:57. > :05:01.and location talk. It plays -- London attracts talent from around
:05:02. > :05:04.million people live in the British million people live in the British
:05:05. > :05:09.capital. If you look at things like the bonus tax, the other issue was
:05:10. > :05:13.the financial transactions tax, seen as something that would not be good
:05:14. > :05:16.for London. I don't want to say there are no risks. But there are
:05:17. > :05:22.many people who argue, particularly the speak to banking executives
:05:23. > :05:24.privately, we say that London's sheer size will maintain its
:05:25. > :05:29.position in the short to medium term. Obviously over the longer
:05:30. > :05:33.term, because this is a service industry based on people and talent,
:05:34. > :05:37.they can move easily. It is not like you were moving a steel factory from
:05:38. > :05:42.London to France. You are moving people. And if they can move
:05:43. > :05:45.quickly, once things start changing, they can change rapidly. Apparently
:05:46. > :05:51.on Monday we are guiding you something about the London stock
:05:52. > :05:56.exchange. A merger. Any thoughts on what they might say next week? Yes,
:05:57. > :05:59.the German regulator has made it clear that given the vote last week
:06:00. > :06:02.on Britain leaving the European Union, it is more uncomfortable
:06:03. > :06:07.about this new merged entity being headquartered in London. There will
:06:08. > :06:12.be an issue if this deal goes through and the shareholder revolts
:06:13. > :06:14.are imminent, if this deal goes through there is a greater chance of
:06:15. > :06:18.headquarters being in Frankfurt rather than London. That would raise
:06:19. > :06:26.some issues about this being a takeover rather than a merger. There
:06:27. > :06:29.are some big issues which will be made more confusing and more
:06:30. > :06:34.difficult because of the referendum result. Like we need more confusion!
:06:35. > :06:40.Kamal will return in about ten minutes. Send us your questions
:06:41. > :06:42.about Brexit. I am sure you have many. He will try to tackle them for
:06:43. > :06:49.you. Authorities in the US
:06:50. > :06:51.are investigating the death of a man who was using the autopilot feature
:06:52. > :06:54.in a Tesla electric car. The 45-year-old died in a crash
:06:55. > :06:57.in Florida in May, when the system, which automatically switches lanes,
:06:58. > :06:59.failed to spot a lorry. The company said the crash
:07:00. > :07:03.was "a terrible loss". The European Union's top trade
:07:04. > :07:05.official, Cecilia Malmstrom, says the UK cannot begin negotiating
:07:06. > :07:08.terms for doing business with the bloc until after
:07:09. > :07:15.it has left the EU. After Britain leaves,
:07:16. > :07:18.she said trade would be carried out based on World Trade Organisation
:07:19. > :07:23.rules until a new deal was complete. US chocolate giant Hershey has
:07:24. > :07:27.rejected a $23 billion takeover the owner of brands including
:07:28. > :07:33.Cadburys and Oreos. The deal would have
:07:34. > :07:35.created the world's top confectionery company,
:07:36. > :07:38.overtaking the current leader Mars. But Hershey's controlling
:07:39. > :07:43.shareholder - a charitable trust created by the founder in 1894 -
:07:44. > :07:46.said the board had unanimously rejected the offer and decided there
:07:47. > :08:01.was no basis for further discussion. There is more detail on the website
:08:02. > :08:05.about that story. It was a Newsnight interview with Cecila miles from,
:08:06. > :08:09.where she talked about this situation with regards to win the UK
:08:10. > :08:15.can begin to negotiate its terms of leaving the European Union. If you
:08:16. > :08:18.want to read more detail, it is a very interesting article. This is at
:08:19. > :08:23.odds with many of the other opinions out there that we can start
:08:24. > :08:27.negotiating when we hit the Article 50 button. This is saying there are
:08:28. > :08:32.two negotiations that need to take place. The first is how we lead and
:08:33. > :08:37.after that, under EU rules, it is only then that we will be able to
:08:38. > :08:41.negotiate any kind of trade deal. Very interesting. One wonders if the
:08:42. > :08:42.rule book will apply in the next couple of years. It will keep us
:08:43. > :08:43.busy. Japan loses ownership of one
:08:44. > :08:45.of its most well-known electronics brands today, when Taiwan's Foxconn
:08:46. > :08:47.officially takes over The move may see as many
:08:48. > :08:52.as 7000 job losses. Mariko Oi is in Singapore
:08:53. > :09:05.for us this morning. How does Japan feel about losing
:09:06. > :09:13.ownership of one of its most iconic brands? We have been talking about
:09:14. > :09:19.this $3.5 billion deal for several months, several years, in fact. I
:09:20. > :09:23.bet my entire monthly salary this would not go ahead because the
:09:24. > :09:27.country's technological sector has been known to be very insular and
:09:28. > :09:34.never accepting takeover offers from a foreign company. Sharp is
:09:35. > :09:38.definitely the first. Earlier in the week I spoke to some shoppers in
:09:39. > :09:42.Tokyo. Some of them said they were sentimental. Others expressed
:09:43. > :09:52.concerns because it is Fox con, which is owned by Taiwan, and China.
:09:53. > :09:57.China has often been accused of copying other people's technology.
:09:58. > :10:02.Job cuts maybe around the corner. There is speculation about whether
:10:03. > :10:05.that will happen, even though the fox con management promised they
:10:06. > :10:10.would try to protect as many jobs as possible. Thank you very much.
:10:11. > :10:20.A quick look at the markets. Many of the main industries raised the Foals
:10:21. > :10:29.sparked by last week's decision by Britain to leave the EU. On the
:10:30. > :10:33.European markets, they are pushing hard for a second day. Shares are
:10:34. > :10:38.very much basking in the prospect of more stimulus to ward off a Brexit
:10:39. > :10:46.induced economic slowdown. Samir Rojo sene is in New York.
:10:47. > :10:50.On Friday, Puerto Rico faces a potential default on a chunk of its
:10:51. > :10:53.debt. If it cannot make $1.9 billion worth of payments. Congress has
:10:54. > :10:59.approved a relief plan to help were to Rico address 70 billion of that
:11:00. > :11:07.debt. The Puerto Rico government has said the island will still default
:11:08. > :11:13.on some of what they owe. US numbers are out today and are expected to
:11:14. > :11:17.have risen by 5%. 2015 was a record high for car sales. While this year
:11:18. > :11:21.sales numbers are quite strong, it looks unlikely they will be able to
:11:22. > :11:25.break another record. In fact, some analysts believe the peak of sales
:11:26. > :11:29.in the automobile industry has passed. And finally, US
:11:30. > :11:36.manufacturing numbers out today suggest economists are not expecting
:11:37. > :11:38.much left for the month of June. Struggling overseas economies and
:11:39. > :11:40.limited business investment are to blame.
:11:41. > :11:48.Joining us now is Lawrence Gosling, editor-in-chief of Investment Week.
:11:49. > :11:56.Samir are talking about the data coming out of the US. She talked
:11:57. > :12:01.about manufacturers and the difficulties they are facing. A
:12:02. > :12:05.strong dollar is not helping, is it? Not at all. We have seen huge swings
:12:06. > :12:10.in currencies in the past week. The dollar is the safe haven currency
:12:11. > :12:15.for global investors. The US economy is pretty strong. Strong dollar not
:12:16. > :12:20.great for US manufacturers. I would imagine that is on Janet Yellen 's's
:12:21. > :12:25.might? A little bit. Central banks do not have a huge the Power to
:12:26. > :12:30.manipulate currency. We heard some of that from Mark Carney yesterday.
:12:31. > :12:33.I was at the Bank of England yesterday and we saw a massive rise
:12:34. > :12:41.in the value of the Footsie within the first ten minutes of him
:12:42. > :12:44.speaking. Doesn't this Telus and all full lot about low interest rates?
:12:45. > :12:48.Obviously the dangers and the uncertainty have not really gone
:12:49. > :12:54.away, particularly on the fiscal side, yet everybody is now ploughing
:12:55. > :12:59.back into equities? Yes, the symbol at -- the simple economics have not
:13:00. > :13:03.changed. The UK economy is OK but it is a little fragile, as the bank of
:13:04. > :13:07.England has said. The one obvious to they have is a cut in interest
:13:08. > :13:12.rates. It is interesting as to whether they do it on the 14th of
:13:13. > :13:15.July, or they hold off during the summer. The summer is notoriously
:13:16. > :13:21.difficult to judge from an economic perspective. A lot of it is driven
:13:22. > :13:27.by the weather. It is called the silly season. A hot summer is good
:13:28. > :13:31.for consumer spending. It has been soggy so far. Things like that they
:13:32. > :13:34.do actually look at. They will not press the button because there is a
:13:35. > :13:42.little bit more rain than perhaps was forecast. We will see you later.
:13:43. > :13:49.The BBC has been speaking to the boss of the oil giant Shell. And
:13:50. > :13:50.some of his fears about Britain use -- losing access to the single
:13:51. > :13:50.market. You're with Business
:13:51. > :13:54.Live from the UK. Now, can Britain plough
:13:55. > :13:56.its own furrow, or is there UK farmers will meet today
:13:57. > :14:01.to discuss the post-Brexit future. Meurig Raymond is President
:14:02. > :14:16.of the National Farmers Union. The NFU hazard -- advised its
:14:17. > :14:25.members to remain before the referendum. Farmers were pretty
:14:26. > :14:29.divided. Many voted Leave. Of course, this is a huge issue. I
:14:30. > :14:35.wonder where you even begin to start with this today? Good morning.
:14:36. > :14:40.Obviously food and farming is so important to the nation. You produce
:14:41. > :14:44.the food for people to it, the ingredients for the food and drinks
:14:45. > :14:48.sector. The NFU Council, the governing body of the National
:14:49. > :14:52.Farmers' Union, will meet today to look at priorities, to look at
:14:53. > :14:56.options. Following on from the meeting, we will go out to
:14:57. > :15:01.consultation with our 50,000 members across England and Wales, to put
:15:02. > :15:06.together a domestic agricultural policy that will be fit for purpose
:15:07. > :15:11.for UK farming. We want this opportunity to give us the ability
:15:12. > :15:16.to compete, to be profitable and increase our productivity for the
:15:17. > :15:21.future. The EU subsidies represent more than half the income of UK
:15:22. > :15:24.farms. Each farm gets more than ?70,000 per year from Brussels. Will
:15:25. > :15:29.you ask the UK government for the equivalent? Let's go through the
:15:30. > :15:34.consultation today with our members. That is so important. Following on
:15:35. > :15:39.from that, all I would say is that we must not be disadvantaged from
:15:40. > :15:43.our European competitors, from other competitors around the world,
:15:44. > :15:46.because if our competitors are receiving support from their
:15:47. > :15:52.government, it is so important that we have equal support, otherwise we
:15:53. > :15:55.will become uncompetitive and find it difficult to expand our
:15:56. > :15:59.production. All the surveys we have done a the NFU with the British
:16:00. > :16:03.people highlight that the British people want to see more British food
:16:04. > :16:07.on their plates. We need that competitive and innovative,
:16:08. > :16:19.productive sector to drive British agriculture fought. -- forward.
:16:20. > :16:25.In an very important subject for both UK and European farmers. More
:16:26. > :16:31.details about the challenges they are facing. Look when you have time.
:16:32. > :16:50.64% of exports coming from Paris, Frankfurt and Dublin are all
:16:51. > :16:55.looking to lure firms away from London, our capital.
:16:56. > :16:59.A quick look at how markets are faring.
:17:00. > :17:05.It's the final trading day of the week, and the week has probably gone
:17:06. > :17:09.better than many would have expected. Remember, at the start of
:17:10. > :17:16.the week, we saw heavy, heavy losses. Then we went into bounce-
:17:17. > :17:22.back mode. We seem to have stayed in that place, thanks to Mark Carney
:17:23. > :17:26.who spoke yesterday afternoon. The FTSE yesterday, closing at a ten
:17:27. > :17:39.month high. We saw sterling fall against the dollar. It's at 100 and
:17:40. > :17:43.-- we've seen a link between the
:17:44. > :17:45.falling sterling and the rise of the FTSE.
:17:46. > :17:48.Let's stay with Brexit because - like Britain's banks -
:17:49. > :17:50.the bosses of the world's largest oil companies are also trying
:17:51. > :17:55.The BBC has been speaking to Ben van Beurden, the chief executive
:17:56. > :18:04.I hope that the relationship that will be defined by the governments
:18:05. > :18:10.of the UK and the EU will give us access to the single market.
:18:11. > :18:17.Ideally, the free movement of people. Important borough company
:18:18. > :18:21.like us. But at this point in time it would be speculative to see what
:18:22. > :18:25.is going to happen. I think nothing will happen. I think we will still
:18:26. > :18:32.meet our investment programmes that we have in the UK, we were still
:18:33. > :18:38.recruit people in the UK, supply energy to them. In the short term,
:18:39. > :18:43.there is no change, but how it will play out in the long run.
:18:44. > :18:49.Our economics editor, Kamal Ahmed, is joining us again.
:18:50. > :18:57.Keep your questions coming in. Let's take a question from Kevin. He says
:18:58. > :19:03.what time frame is most likely the British Government to invoke article
:19:04. > :19:10.50? A huge question. Theresa May, who is currently then you run run
:19:11. > :19:14.for the leader of the Conservative Party, and therefore Prime Minister,
:19:15. > :19:20.she isn't in a hurry to spark article 50. We need to be clear on
:19:21. > :19:24.what we want, as Britain, from the EU, before article 50 is sparked. It
:19:25. > :19:31.seems possible that it would be next year. And once it drift into next
:19:32. > :19:38.year then it could be longer. There's no immediate article where
:19:39. > :19:45.that will be sparked. What you make of Cecilia Maelstrom's comments to
:19:46. > :19:49.Newsnight? There's a huge difference between the politics of the issue,
:19:50. > :19:54.the legality of the issues and the business issues around it. Legally,
:19:55. > :19:59.it may be correct what she said about the sequencing, so that you
:20:00. > :20:02.have to negotiate your exit and then your re-entry. What kind of market
:20:03. > :20:08.relationship we will have with the EU. Politically, it would be very,
:20:09. > :20:14.very difficult to achieve. This is now up in it -- political issue.
:20:15. > :20:20.Businesses in both Europe and Britain will not want to wait for
:20:21. > :20:26.username to get the definition of what a single market or the style of
:20:27. > :20:34.relationship will be between Britain and Europe. We've got some viewers
:20:35. > :20:40.in Africa, John P O, says what were the aid mean between written in
:20:41. > :20:47.Europe? It's an interesting question. In terms of the commitment
:20:48. > :20:51.to send 0.7% of its GDP on international development. It could
:20:52. > :20:56.end it would be up to the new Prime Minister to decide that. In terms of
:20:57. > :21:00.trade, leaving the EU it could be very positive. When we were ejected
:21:01. > :21:10.from the exchange rate mechanism, which was the four word for the
:21:11. > :21:13.single currency, there was rapid increase in sterling. So companies
:21:14. > :21:18.could be obliged to look elsewhere for opportunities and emerging
:21:19. > :21:23.economies in Africa, South Africa particularly. Nigeria, Angola,
:21:24. > :21:28.picked, powerful economies. One of the sticking points with -- is what
:21:29. > :21:34.happens with the movement of freedom -- free movement of people? We had
:21:35. > :21:40.this from Shane Dowling, could we not agree that people could get work
:21:41. > :21:48.permits and give no automatic rights for UK benefits system? There's
:21:49. > :21:52.tensions around this, not just in Britain, but in other countries,
:21:53. > :21:59.Denmark, France, the Netherlands. I think what you could get to is free
:22:00. > :22:05.movement minus. So it's the freedom to work wherever you want in Europe
:22:06. > :22:10.if you have a job. Not the right of every citizen to go to the country
:22:11. > :22:16.and look for work. There could be something around that which were not
:22:17. > :22:23.highly mean that Britain could be in a single markets with the EU without
:22:24. > :22:31.free movement. But in fact free movement minor -- free movement
:22:32. > :22:39.minus. Who came up with a? IDs! This free movement issue isn't just an
:22:40. > :22:46.issue for Britain. Other countries might want to work on changing that
:22:47. > :22:49.central pillar. We thank you for your questions. It's good to get
:22:50. > :22:57.answers to what you are thinking about. Let's get a little bit more
:22:58. > :23:01.about that story from Tesla. The US authorities are investigating the
:23:02. > :23:05.death of a man who is using autopilot in one of their cars. The
:23:06. > :23:12.45-year-old died when the system that changes lanes fail to notice a
:23:13. > :23:16.lorry. We have the details. Tesla is a company considered to be at the
:23:17. > :23:21.cutting edge of card technology, not just in the way it powered vehicles
:23:22. > :23:26.but how it controls them as well. One of the new features is a feature
:23:27. > :23:31.called autopilot, that's the way that the car is automatically able
:23:32. > :23:36.to change lanes, speed up and slow down according to traffic. US
:23:37. > :23:39.investigators are looking at that feature and are wondering if its
:23:40. > :23:45.malfunction led to the death of a man using it on one of its roads in
:23:46. > :23:57.May. If the software is found to be at fault there could be a recall and
:23:58. > :24:01.Tesla could be asked to disable the function on the car. Some are asking
:24:02. > :24:09.whether this technology is really ready to be used on public roads
:24:10. > :24:13.just yet. Lawrence is back to talk to us about some of the stories in
:24:14. > :24:21.the business. So many angles on Brexit. Why buyers tempted by the
:24:22. > :24:25.weak pound? They'd been sweeping on London according to the Financial
:24:26. > :24:29.Times. They have picked up high quality art. There was a
:24:30. > :24:35.contemporary Art auction which when 20% over the estimated sort of
:24:36. > :24:40.prices. The people who deal in fine wine are reporting huge trade last
:24:41. > :24:44.week and this week. It's an asset that may not go down in value in
:24:45. > :24:50.other assets are all over the place? We've seen huge uplift in the
:24:51. > :24:56.evaluation in the last 10-15 years because it's a great store of value.
:24:57. > :25:00.There's only one Picassos as it said. That how you transport this is
:25:01. > :25:06.going to be very interesting. At the moment, we are a low tax gateway.
:25:07. > :25:12.Presumably if that's changes then there could be markets and more
:25:13. > :25:18.profitable. We have a very low percent, 5%, compared to 20 plenty
:25:19. > :25:21.Germany. In London might not be quite as attractive if we see the
:25:22. > :25:32.effect of Brexit on the tariffs. What about virtual reality
:25:33. > :25:34.technology? There are concerns about headaches and whether it suitable
:25:35. > :25:42.for children, which is obviously a big part of intent to's market. And
:25:43. > :25:49.the elderly! They love some of the consoles, don't they? I don't really
:25:50. > :25:54.want my children spending a lot of time with virtual reality equipment
:25:55. > :26:02.and getting headaches and that sort of thing. That's it from us today.
:26:03. > :26:03.Plenty more on the website. Have a lovely