:00:00. > :00:07.This is Business Live from BBC News with Aaron
:00:08. > :00:18.There's a cloud of uncertainty around the UK's future post Brexit
:00:19. > :00:26.MPs and bank bosses meet later to try to work out what it means for
:00:27. > :00:29.the public? Live from London, that's our top
:00:30. > :00:42.story on Tuesday, 5th July. Gazing into their crystal ball -
:00:43. > :00:47.the UK''s political and economic leaders are going to be peering
:00:48. > :00:50.into the future today try and work out what the UK might
:00:51. > :00:53.look like post Brexit. Could it bring a new period
:00:54. > :01:12.of opportunity and growth or just Now need help finding your
:01:13. > :01:16.smartphone or monitoring your pet? South Korea are launching their
:01:17. > :01:21.first low-cost network to make the money more country. The markets are
:01:22. > :01:22.a little off today, we will explain why.
:01:23. > :01:25.And there's no more dancing around the issue.
:01:26. > :01:27.The UK is leaving the European Union.
:01:28. > :01:29.We continue our special series looking at the sectors
:01:30. > :01:35.Today we assess the impact on higher education with the head
:01:36. > :01:41.And as the head of the IMF says that the EU "will get more work
:01:42. > :01:45.We want to know, did the EU get too big too quickly,
:01:46. > :01:50.and will a smaller, more nimble EU achieve more?
:01:51. > :01:59.Et us know. -- let us know. Lots going on.
:02:00. > :02:04.Today could be the day that some of the post Brexit
:02:05. > :02:09.Three important bodies in the UK will today be looking
:02:10. > :02:12.into their crystal balls to see what the country's vote to leave
:02:13. > :02:16.The Treasury Select Committee and Foreign Affairs Select Committee
:02:17. > :02:23.both gather today to discuss how UK's relationship
:02:24. > :02:26.with the European Union and the wider world might now change.
:02:27. > :02:28.The Bank of England will also today publish its latest biannual
:02:29. > :02:30.Financial Stability Report on their outlook for
:02:31. > :02:35.To top it all off the UK's Finance Minister George Osborne
:02:36. > :02:39.is also spending the day meeting with the heads of some of the major
:02:40. > :02:46.With me is Helen Goodman, a Labour party member of the UK's
:02:47. > :02:56.Nice to see you. Welcome to Business Live. A lot for you to do today and
:02:57. > :03:00.a lot for you to find out. Run me through the headline things that
:03:01. > :03:03.you're looking to discover today? Well, people have probably noticed
:03:04. > :03:06.there isn't a plan for Brexit so we're going to explore how we might
:03:07. > :03:09.leave the EU. The first thing we're going to discuss is what homework
:03:10. > :03:15.ministers need to do. How they're going to prep for the negotiations.
:03:16. > :03:19.How the negotiations are handled. Then we're going to look at the
:03:20. > :03:22.Norway option and we're going to look at a looser arrangement and
:03:23. > :03:24.we're going to look at wider questions like what are the
:03:25. > :03:32.implications for Scotland and Northern Ireland. Why is there no
:03:33. > :03:35.plan? Well, you'd have to ask those people who argued for Brexit that
:03:36. > :03:39.question. I was a Remain person and I feel the Brexit people have really
:03:40. > :03:44.let the country down. I think it was very irresponsible of them. So we
:03:45. > :03:46.find ourselves in this position without a plan, whoever's fault that
:03:47. > :03:50.is. Clearly, the challenge is to come up with a plan and this is what
:03:51. > :03:54.you want to do today. It strikes me there are so many things and there
:03:55. > :03:57.are many things in which we don't have expertise, we've talked a lot
:03:58. > :04:00.about the trade deals that need to be done and we don't have trade
:04:01. > :04:03.negotiators because they are all in Europe. Where do we get that
:04:04. > :04:09.expertise? Where do we start to come up with a plan? OK, what ministers
:04:10. > :04:15.told me is they are recruiting now. They will recruit from the EU, I
:04:16. > :04:19.think, I think they will recruit from law firms in London, but
:04:20. > :04:23.they're trying to staff up the unit and it will probably take a couple
:04:24. > :04:27.of months. Let's talk Article 50. That's the big thing. The big cloud
:04:28. > :04:32.that's hanging over us all about whether it will be triggered and if
:04:33. > :04:35.it will be triggered and when. I suppose the challenge for that, you
:04:36. > :04:40.know, is from a business point of view, some say, yes do it now and do
:04:41. > :04:43.it quickly and we have certainty, others say hang on, make sure we do
:04:44. > :04:48.it right. Which way is it going to go? I hope it will go slightly more
:04:49. > :04:54.slowly because once we trigger Article 50, the clock is ticking.
:04:55. > :04:57.Once the clock is ticking, the other EU member states have got a stronger
:04:58. > :05:02.hand to play and we're in a weak position because we've got to get it
:05:03. > :05:06.done and at the moment we don't know exactly how we want to run these
:05:07. > :05:12.negotiations. So it is better for us to get our act together before we
:05:13. > :05:17.trigger Article 50. In addition, there is a case for putting Article
:05:18. > :05:22.50 into primary legislation so that it is approved by Parliament before
:05:23. > :05:26.it is triggered and that would be quite a good idea because then we'd
:05:27. > :05:30.increase the transparency, the public could see what the deal was
:05:31. > :05:34.going to be, they could comment on it, so that has some attractions. I
:05:35. > :05:40.was going to say before, watching around the world, who don't know the
:05:41. > :05:44.intricasies of Article 50 is the button, once that's triggered, the
:05:45. > :05:47.clock starts ticking to getting out. Can I ask you this, everybody talks
:05:48. > :05:51.about the Norway model, very briefly can you explain what the Norway
:05:52. > :05:56.model is and it could be a perfect option for the UK? OK. So Norway
:05:57. > :06:02.still pay contributions to the EU budget. But they have full access to
:06:03. > :06:06.the single market and they have to accept EU citizens coming to work in
:06:07. > :06:11.the country. So you're almost a member, but not quite.
:06:12. > :06:17.Right. OK. Well, there is a lot going on. The best of luck with
:06:18. > :06:20.today! We need it. Can you find some leadership while you're doing that
:06:21. > :06:26.as well because that kind of would help. Definitely. Helen, thank you.
:06:27. > :06:28.Standard Life Investments has suspended trading in its UK property
:06:29. > :06:30.fund blaming "exceptional market circumstances" following
:06:31. > :06:37.The fund manager said the number of investors asking
:06:38. > :06:40.to withdraw their money had increased following the vote.
:06:41. > :06:45.The last time Standard Life stopped investors taking their money out
:06:46. > :06:48.of the fund was during the financial crisis.
:06:49. > :06:51.The United States has overtaken Saudi Arabia as the biggest
:06:52. > :06:55.That's according to a Norwegian consultancy.
:06:56. > :06:58.More than half of remaining oil reserves in the US are shale oil
:06:59. > :07:06.The US shale boom was one of the reasons behind the recent oil
:07:07. > :07:10.price collapse to $30 a barrel earlier this year.
:07:11. > :07:12.But since then oil prices have rallied and it's now
:07:13. > :07:21.Silver, it is long considered the poorer cousin of gold,
:07:22. > :07:24.is trading at its highest price in more than two years.
:07:25. > :07:26.It comes as investors put their money into precious metals
:07:27. > :07:30.Silver rose by as much as 7% in US trading
:07:31. > :07:34.It has risen 11.5% in the past three days.
:07:35. > :07:52.Gold added more than 1% to settle at $1,350 - that's a two-year high.
:07:53. > :08:00.Guess what our producer took out of that? The hot dog story! Yeah, he is
:08:01. > :08:02.telling me. Our producer doesn't know how to make good television,
:08:03. > :08:17.but we can only try! We can try! Osborne is meeting with bank chiefs
:08:18. > :08:21.today. MPs will meet those giving evidence about what happens next in
:08:22. > :08:27.terms of coming up with a plan. We talked about that, but what will it
:08:28. > :08:32.mean for the UK's future for financial services. George Osborne
:08:33. > :08:37.meeting bank bosses later today to find out what happens next? There is
:08:38. > :08:40.simply no plan. So they will try and come up with something and they're
:08:41. > :08:43.trying to find someone to lead the country to do it, but we'll talk
:08:44. > :08:52.about that later. So how do you like your
:08:53. > :08:54.eggs in the morning? No seriously, what about getting
:08:55. > :08:58.some help to find your smartphone if you lose it or perhaps a coffee
:08:59. > :09:01.maker that delays making your cup of java if you hit your alarm
:09:02. > :09:04.clock's snooze button? One country leading the way
:09:05. > :09:06.in what's been dubbed the Internet of Things is South Korea
:09:07. > :09:09.where the largest mobile carrier is to invest $87 million in making
:09:10. > :09:11.the nation more connected. Sharanjit Leyl is in
:09:12. > :09:20.Singapore for us. Explain this for us because the
:09:21. > :09:24.internet of things, we know about it, it is about connecting these
:09:25. > :09:30.devices. South Korea leading the way? It is, indeed. Certainly do
:09:31. > :09:34.believe it because according to one analyst South Korea is amongst the
:09:35. > :09:38.wide countries in the world and this will help it maintain its lead.
:09:39. > :09:42.Certainly, you talk about that cup of java, but I can't wait for a
:09:43. > :09:47.device to help me monitor my pet dog. This is a much touted
:09:48. > :09:49.technology that really aims to connect household devices,
:09:50. > :09:53.buildings, it helps fridges or printers tell its owners when it
:09:54. > :09:56.needs to be refilled and South Korea, of course, the first country
:09:57. > :10:02.and it is also really interesting because it has done this low-cost
:10:03. > :10:06.which is really aimed at making the country more connected. It is the
:10:07. > :10:10.phone carrier which is behind the initiative. It is using technology
:10:11. > :10:15.that will allow it to reach 99% of the country's population. And
:10:16. > :10:22.certainly, the Netherlands is the only other country which has an
:10:23. > :10:26.internet of things or IOT Network. The telecoms firm is investing up to
:10:27. > :10:29.90 million to further develop the infrastructure which it hopes will
:10:30. > :10:35.be a new source of revenue. Now, users will have to subscribe to
:10:36. > :10:43.monthly price plans of under $2 and in a statement, the company said the
:10:44. > :10:48.price plans are of course highly affordable which will ease the cost
:10:49. > :10:54.burden of start-ups and small and medium enterprises. So I can't wait
:10:55. > :11:00.to go to South Korea and try this out for myself. And get some help
:11:01. > :11:03.for your dog! You could look after your dog yourself!
:11:04. > :11:09.She has gone! Asian shares snapped a five-day
:11:10. > :11:18.winning streak on Tuesday as nervous investors took some profits
:11:19. > :11:21.despite hopes of increased Central Bank stimulus to offset a likely
:11:22. > :11:24.downturn triggered by Brexit. Let me just explain that -
:11:25. > :11:26.Britain's vote to leave the European Union has ramped up
:11:27. > :11:29.the urgency for some of these Asian central banks
:11:30. > :11:34.to ease monetary policy, because of a prolonged
:11:35. > :11:40.period of uncertainty which threatens a wider down-shift
:11:41. > :11:44.in trade and investment. Shares in Italian banks,
:11:45. > :11:54.saddled with a mountain of bad loans, dropped nearly 4%
:11:55. > :11:58.after Italian government said the country had no plans to pump
:11:59. > :12:02.public money into its banks, a move that could be seen
:12:03. > :12:11.as defying EU rules. Joining us is Sue Noffke, UK
:12:12. > :12:22.Equities Fund Manager at Schroders. Let's talk about Mark Carney, he is
:12:23. > :12:25.a man that seems to have a plan. He is laying out the stability report
:12:26. > :12:28.at the Bank of England, the governor of the Bank of England, he is trying
:12:29. > :12:34.to give us some reassurance that everything will be OK? Certainly,
:12:35. > :12:39.the financial system is not going to gum up around lending and capital
:12:40. > :12:45.requirements for banks. So that's what he is going to be talking about
:12:46. > :12:48.today. Potentially, reducing the tightening capital requirement that
:12:49. > :12:52.banks were going to have and potentially taking those off the
:12:53. > :12:57.table, potentially doing more funding for lending. So cheap funds
:12:58. > :13:02.for banks to onward lend to businesses and individuals. To keep
:13:03. > :13:09.the economy going at a time of acute uncertainty.
:13:10. > :13:13.Urn certainty this is what leads investors to putting money, taking
:13:14. > :13:18.money out of the markets and where do we put them, into safe havens, I
:13:19. > :13:24.mentioned silver, gold, but you were mentioning Government debt, right?
:13:25. > :13:30.At times of uncertainty, investors tend to go for safer assets. So that
:13:31. > :13:35.can be precious metals. So gold, silver, platinum, it can be
:13:36. > :13:40.currencies where the central banks don't seem to want to devalue those
:13:41. > :13:46.currencies. So the Swiss Franc, the Japanese yen, the US dollar and then
:13:47. > :13:50.are Government bonds which repay you are Government bonds which repay you
:13:51. > :13:54.in five or ten years' time with a small amount of interest. Those
:13:55. > :14:00.yields, so the returns you're getting paid by those central banks
:14:01. > :14:04.have fallen to historic lows and in some cases are paying investors
:14:05. > :14:07.negative interest rates. So investors are paying to park their
:14:08. > :14:12.money in the Government bonds. That's unprecedented.
:14:13. > :14:21.Sue, thank you. I know you'll talk us through the paper stories later.
:14:22. > :14:24.Still to come, funding the future of you're
:14:25. > :14:35.In the UK, the house builder Persimmon has reported strong
:14:36. > :14:37.figures for the first half of the year but says its too
:14:38. > :14:40.early to judge the impact of the vote to leave the EU.
:14:41. > :14:43.The company's shares plunged by almost a third in the wake
:14:44. > :14:46.of the EU referendum but says it still expects the market to provide
:14:47. > :14:53.It comes after yesterday's figures for the construction sector
:14:54. > :14:55.which showed its worst performance in seven years
:14:56. > :15:00.in a study carried out largely before the referendum.
:15:01. > :15:03.Gillain Econopouly is Head of Policy and Research at the Construction
:15:04. > :15:18.Can we take a step back? Those numbers, the worst in seven years or
:15:19. > :15:21.something, before the referendum, what's the problem, what was the
:15:22. > :15:26.problem behind that? Why? Is construction down?
:15:27. > :15:30.We are expecting to see the drop in PMI. A lot of construction firms
:15:31. > :15:32.said they were holding back on investment or delaying projects
:15:33. > :15:43.because they didn't know which way the vote would go.
:15:44. > :15:50.Persimmon has said there are still opportunities, but companies may
:15:51. > :15:55.still be flexible. Construction we tend to think of as just houses, it
:15:56. > :16:01.is really reliant on infrastructure. It strikes me the industry needs
:16:02. > :16:07.some reassurance in terms of infrastructure, roads, railways, to
:16:08. > :16:10.save those jobs. Absolutely, housing is really important, but
:16:11. > :16:14.infrastructure has a huge role to play. The more reassurance is that
:16:15. > :16:18.governments can give employers, the more confident employers will feel
:16:19. > :16:33.and that will help them train their staff which is crucial of the -- for
:16:34. > :16:42.the country. Thank you, I said your name wrong again! LAUGHTER
:16:43. > :16:50.I want to bring you some more BHS news. More evidence, an interview
:16:51. > :16:58.that Adam has done, the former owner of BHS describing the ?2.6 million
:16:59. > :17:02.that he took out of the company, he says it is a drop in the ocean. It
:17:03. > :17:06.is the first interview there, you can watch it on the website.
:17:07. > :17:12.You're watching Business Live - our top story.
:17:13. > :17:22.With Brexit on its way, some of the UK's top figures are holding these
:17:23. > :17:28.meetings today to try to forge a path forward. Later today the UK's
:17:29. > :17:34.Finance Minister will be discussing the vote with bank bosses. George
:17:35. > :17:38.Osborne is already talking about how the finances will be affected by
:17:39. > :17:42.what he calls a cyclical downturn as a result of Brexit.
:17:43. > :17:51.A quick look at how markets are faring.
:17:52. > :17:55.To losses in Germany and France are a little lower this morning and a
:17:56. > :18:02.pound will buy you $1 32 cents. As part of our special series,
:18:03. > :18:04.we've been assessing the impact And asking whether there
:18:05. > :18:08.are opportunities as well as risks. But what about higher education -
:18:09. > :18:11.and the free movement of students from across the European Union
:18:12. > :18:14.who can choose to study and work There are currently 125,000
:18:15. > :18:18.EU students in the UK, and they're entitled to similar
:18:19. > :18:22.loans to those offered And those EU students at UK
:18:23. > :18:31.universities generate ?3.7 billion - that's around $4.9 billion
:18:32. > :18:34.for the UK economy. Between them they support more
:18:35. > :18:38.than 34,000 jobs in the UK. Leaving the EU could force students
:18:39. > :18:44.from within the Union to pay much higher fees of up to $46,000
:18:45. > :18:48.a year to study in the UK and remove their access
:18:49. > :18:52.to the British student loan scheme. In the run-up to the referendum,
:18:53. > :18:54.Leave campaigners said they would protect the money
:18:55. > :18:56.universities receive But there are still no details
:18:57. > :19:00.on exactly how this would happen. Mark Featherstone-Witty, founding
:19:01. > :19:09.principal and Chief Excecutive of The Liverpool Institute
:19:10. > :19:21.for Performing Arts joins us. I'm sorry, it is a long name. We
:19:22. > :19:31.pronounce that one right! Talk us through what Brexit means for you.
:19:32. > :19:35.You have the students from the EU coming to Liverpool. Not just the
:19:36. > :19:40.EU, students from around the world, a third come from outside the
:19:41. > :19:48.country, a third come from outside of Europe from those. As it happens,
:19:49. > :19:52.for some bizarre reason, we had... Currently we have three students
:19:53. > :19:59.from the EU and this year 23 have started to study with us. The
:20:00. > :20:03.interesting thing that has happened, nobody knows what is happening, do
:20:04. > :20:08.they? You are doing a wonderful job trying to piece it all together, but
:20:09. > :20:14.anybody can guess. Joe Johnson who it happens our central body met on
:20:15. > :20:20.the day that the announcement was made about Brexit, said like a lot
:20:21. > :20:23.of government ministers, it is business as usual. You have to
:20:24. > :20:29.remember the universities that everything is on a three-year cycle,
:20:30. > :20:32.they are three-year courses. There is a contract that universities
:20:33. > :20:37.enter in with those students, you cannot stop it part of the way
:20:38. > :20:42.through. You are breaking your contract with them in a way. I
:20:43. > :20:48.believe that it will take three years anyway to work through. You
:20:49. > :20:53.cannot accept people and say I am terribly sorry, you cannot be here
:20:54. > :20:59.any more. It will not be fast. We will check in with you each year!
:21:00. > :21:04.LAUGHTER We night to get an inside look and
:21:05. > :21:10.feel for the person we are chatting too. How did you get involved? You
:21:11. > :21:16.come from a showbiz background, you are without a mobile phone, who
:21:17. > :21:19.doesn't have a mobile phone? I love this, a showbiz background! In the
:21:20. > :21:25.end it was more of an entrepreneurial background although
:21:26. > :21:29.I did spend some time acting. One of the interesting things, you had a
:21:30. > :21:32.picture at the beginning of we are going to talk this person from the
:21:33. > :21:37.performing arts and you showed a picture of people on the stage
:21:38. > :21:42.dancing. The thing I would like to say is everyone who is watching and
:21:43. > :21:51.indeed to you, it is called show business for a reason. It is shallow
:21:52. > :21:55.and business. 76% of those working in the entertainment business
:21:56. > :22:03.ourselves employed. -- it is show and business. Those people cannot
:22:04. > :22:11.just be luvvies, they have to manage their business lives. 84% of SN
:22:12. > :22:18.evens in the performing arts have less than three or four people. --
:22:19. > :22:23.SMEs. It would be crazy to run the performance arts institution that
:22:24. > :22:27.did not teach business to everyone. What is so interesting about that is
:22:28. > :22:32.you need to teach students to deal with the real world and be their
:22:33. > :22:37.agents and avoid sharks and deal with casting and that is the
:22:38. > :22:40.business of it. It is money in exchange for a service and they need
:22:41. > :22:47.to be worldly wise. Correct, exactly right. Lovely, nice to see you. Time
:22:48. > :22:55.is against us, I would love to talk some more. Thank you very much. We
:22:56. > :22:59.have a tweet, how enthusiastic are these guys, they definitely had
:23:00. > :23:09.their Weetabix this morning! It is you! LAUGHTER
:23:10. > :23:10.Thank you for coming in. He has gone!
:23:11. > :23:12.In a moment we'll take a look through the Business Pages,
:23:13. > :23:16.but first here's a quick reminder of how to get in touch with us.
:23:17. > :23:22.We will keep you up-to-date with insight and analysis from the team
:23:23. > :23:26.of editors from right around the world and we want to hear from you
:23:27. > :23:38.as well. Get involved on the business website on the BBC. You can
:23:39. > :23:52.find us on Twitter and Facebook. We are on TV and online, whenever you
:23:53. > :23:56.need to know. Sue is back to talk to us about the papers. Given all that
:23:57. > :24:02.we have seen about George Osborne wanting to cut corporation tax in
:24:03. > :24:06.the UK, and extra tax on tech firms to pay for things in San Francisco.
:24:07. > :24:12.Property prices have gone up because of the influx and the success of
:24:13. > :24:20.these tech companies. It is about people who have not benefited from
:24:21. > :24:24.the boom. The global income, the inequalities that felt around the
:24:25. > :24:28.globe. People who felt left out, their housing costs have gone up,
:24:29. > :24:34.they are asking the tech firms in some princes go to pay. The problem
:24:35. > :24:39.in putting this kind of thing together and the chances of success
:24:40. > :24:44.are very low because although it is populist, trying to get tech
:24:45. > :24:53.companies... What is the definition of a tech company, where is San
:24:54. > :24:56.Francisco starting and ending? It will be problematic. The
:24:57. > :25:01.protagonists are saying many of these tech companies have Balanta
:25:02. > :25:05.the efforts that are global and they need to do something more. Many are
:25:06. > :25:12.already playing the statutory rate of tax. That is in addition. -- they
:25:13. > :25:19.have charitable efforts that are global. The EU will get more work
:25:20. > :25:27.done with Britain gone. Really? Stay tuned. Yes, but there is a lot of
:25:28. > :25:33.water to go under the bridge to get Britain gone. There will be a lot of
:25:34. > :25:42.work in getting rid of us! Getting Britain gone! That will be the quote
:25:43. > :25:47.of the day. Always a pleasure. But policymakers will try to work out
:25:48. > :25:50.what is happening next, I will stay across the full details, there is
:25:51. > :25:56.full coverage throughout the day across the BBC and on the website.
:25:57. > :26:00.We will see you later, plenty more business news, you have a little bit
:26:01. > :26:03.more. We will see you soon, goodbye!