Browse content similar to 05/07/2016. Check below for episodes and series from the same categories and more!
This is Business Live from BBC News with Aaron
There's a cloud of uncertainty around the UK's future post Brexit
MPs and bank bosses meet later to try to work out what it means for
the public? Live from London, that's our top
story on Tuesday, 5th July. Gazing into their crystal ball -
the UK''s political and economic leaders are going to be peering
into the future today try and work out what the UK might
look like post Brexit. Could it bring a new period
of opportunity and growth or just Now need help finding your
smartphone or monitoring your pet? South Korea are launching their
first low-cost network to make the money more country. The markets are
a little off today, we will explain why.
And there's no more dancing around the issue.
The UK is leaving the European Union.
We continue our special series looking at the sectors
Today we assess the impact on higher education with the head
And as the head of the IMF says that the EU "will get more work
We want to know, did the EU get too big too quickly,
and will a smaller, more nimble EU achieve more?
Et us know. -- let us know. Lots going on.
Today could be the day that some of the post Brexit
Three important bodies in the UK will today be looking
into their crystal balls to see what the country's vote to leave
The Treasury Select Committee and Foreign Affairs Select Committee
both gather today to discuss how UK's relationship
with the European Union and the wider world might now change.
The Bank of England will also today publish its latest biannual
Financial Stability Report on their outlook for
To top it all off the UK's Finance Minister George Osborne
is also spending the day meeting with the heads of some of the major
With me is Helen Goodman, a Labour party member of the UK's
Nice to see you. Welcome to Business Live. A lot for you to do today and
a lot for you to find out. Run me through the headline things that
you're looking to discover today? Well, people have probably noticed
there isn't a plan for Brexit so we're going to explore how we might
leave the EU. The first thing we're going to discuss is what homework
ministers need to do. How they're going to prep for the negotiations.
How the negotiations are handled. Then we're going to look at the
Norway option and we're going to look at a looser arrangement and
we're going to look at wider questions like what are the
implications for Scotland and Northern Ireland. Why is there no
plan? Well, you'd have to ask those people who argued for Brexit that
question. I was a Remain person and I feel the Brexit people have really
let the country down. I think it was very irresponsible of them. So we
find ourselves in this position without a plan, whoever's fault that
is. Clearly, the challenge is to come up with a plan and this is what
you want to do today. It strikes me there are so many things and there
are many things in which we don't have expertise, we've talked a lot
about the trade deals that need to be done and we don't have trade
negotiators because they are all in Europe. Where do we get that
expertise? Where do we start to come up with a plan? OK, what ministers
told me is they are recruiting now. They will recruit from the EU, I
think, I think they will recruit from law firms in London, but
they're trying to staff up the unit and it will probably take a couple
of months. Let's talk Article 50. That's the big thing. The big cloud
that's hanging over us all about whether it will be triggered and if
it will be triggered and when. I suppose the challenge for that, you
know, is from a business point of view, some say, yes do it now and do
it quickly and we have certainty, others say hang on, make sure we do
it right. Which way is it going to go? I hope it will go slightly more
slowly because once we trigger Article 50, the clock is ticking.
Once the clock is ticking, the other EU member states have got a stronger
hand to play and we're in a weak position because we've got to get it
done and at the moment we don't know exactly how we want to run these
negotiations. So it is better for us to get our act together before we
trigger Article 50. In addition, there is a case for putting Article
50 into primary legislation so that it is approved by Parliament before
it is triggered and that would be quite a good idea because then we'd
increase the transparency, the public could see what the deal was
going to be, they could comment on it, so that has some attractions. I
was going to say before, watching around the world, who don't know the
intricasies of Article 50 is the button, once that's triggered, the
clock starts ticking to getting out. Can I ask you this, everybody talks
about the Norway model, very briefly can you explain what the Norway
model is and it could be a perfect option for the UK? OK. So Norway
still pay contributions to the EU budget. But they have full access to
the single market and they have to accept EU citizens coming to work in
the country. So you're almost a member, but not quite.
Right. OK. Well, there is a lot going on. The best of luck with
today! We need it. Can you find some leadership while you're doing that
as well because that kind of would help. Definitely. Helen, thank you.
Standard Life Investments has suspended trading in its UK property
fund blaming "exceptional market circumstances" following
The fund manager said the number of investors asking
to withdraw their money had increased following the vote.
The last time Standard Life stopped investors taking their money out
of the fund was during the financial crisis.
The United States has overtaken Saudi Arabia as the biggest
That's according to a Norwegian consultancy.
More than half of remaining oil reserves in the US are shale oil
The US shale boom was one of the reasons behind the recent oil
price collapse to $30 a barrel earlier this year.
But since then oil prices have rallied and it's now
Silver, it is long considered the poorer cousin of gold,
is trading at its highest price in more than two years.
It comes as investors put their money into precious metals
Silver rose by as much as 7% in US trading
It has risen 11.5% in the past three days.
Gold added more than 1% to settle at $1,350 - that's a two-year high.
Guess what our producer took out of that? The hot dog story! Yeah, he is
telling me. Our producer doesn't know how to make good television,
but we can only try! We can try! Osborne is meeting with bank chiefs
today. MPs will meet those giving evidence about what happens next in
terms of coming up with a plan. We talked about that, but what will it
mean for the UK's future for financial services. George Osborne
meeting bank bosses later today to find out what happens next? There is
simply no plan. So they will try and come up with something and they're
trying to find someone to lead the country to do it, but we'll talk
about that later. So how do you like your
eggs in the morning? No seriously, what about getting
some help to find your smartphone if you lose it or perhaps a coffee
maker that delays making your cup of java if you hit your alarm
clock's snooze button? One country leading the way
in what's been dubbed the Internet of Things is South Korea
where the largest mobile carrier is to invest $87 million in making
the nation more connected. Sharanjit Leyl is in
Singapore for us. Explain this for us because the
internet of things, we know about it, it is about connecting these
devices. South Korea leading the way? It is, indeed. Certainly do
believe it because according to one analyst South Korea is amongst the
wide countries in the world and this will help it maintain its lead.
Certainly, you talk about that cup of java, but I can't wait for a
device to help me monitor my pet dog. This is a much touted
technology that really aims to connect household devices,
buildings, it helps fridges or printers tell its owners when it
needs to be refilled and South Korea, of course, the first country
and it is also really interesting because it has done this low-cost
which is really aimed at making the country more connected. It is the
phone carrier which is behind the initiative. It is using technology
that will allow it to reach 99% of the country's population. And
certainly, the Netherlands is the only other country which has an
internet of things or IOT Network. The telecoms firm is investing up to
90 million to further develop the infrastructure which it hopes will
be a new source of revenue. Now, users will have to subscribe to
monthly price plans of under $2 and in a statement, the company said the
price plans are of course highly affordable which will ease the cost
burden of start-ups and small and medium enterprises. So I can't wait
to go to South Korea and try this out for myself. And get some help
for your dog! You could look after your dog yourself!
She has gone! Asian shares snapped a five-day
winning streak on Tuesday as nervous investors took some profits
despite hopes of increased Central Bank stimulus to offset a likely
downturn triggered by Brexit. Let me just explain that -
Britain's vote to leave the European Union has ramped up
the urgency for some of these Asian central banks
to ease monetary policy, because of a prolonged
period of uncertainty which threatens a wider down-shift
in trade and investment. Shares in Italian banks,
saddled with a mountain of bad loans, dropped nearly 4%
after Italian government said the country had no plans to pump
public money into its banks, a move that could be seen
as defying EU rules. Joining us is Sue Noffke, UK
Equities Fund Manager at Schroders. Let's talk about Mark Carney, he is
a man that seems to have a plan. He is laying out the stability report
at the Bank of England, the governor of the Bank of England, he is trying
to give us some reassurance that everything will be OK? Certainly,
the financial system is not going to gum up around lending and capital
requirements for banks. So that's what he is going to be talking about
today. Potentially, reducing the tightening capital requirement that
banks were going to have and potentially taking those off the
table, potentially doing more funding for lending. So cheap funds
for banks to onward lend to businesses and individuals. To keep
the economy going at a time of acute uncertainty.
Urn certainty this is what leads investors to putting money, taking
money out of the markets and where do we put them, into safe havens, I
mentioned silver, gold, but you were mentioning Government debt, right?
At times of uncertainty, investors tend to go for safer assets. So that
can be precious metals. So gold, silver, platinum, it can be
currencies where the central banks don't seem to want to devalue those
currencies. So the Swiss Franc, the Japanese yen, the US dollar and then
are Government bonds which repay you are Government bonds which repay you
in five or ten years' time with a small amount of interest. Those
yields, so the returns you're getting paid by those central banks
have fallen to historic lows and in some cases are paying investors
negative interest rates. So investors are paying to park their
money in the Government bonds. That's unprecedented.
Sue, thank you. I know you'll talk us through the paper stories later.
Still to come, funding the future of you're
In the UK, the house builder Persimmon has reported strong
figures for the first half of the year but says its too
early to judge the impact of the vote to leave the EU.
The company's shares plunged by almost a third in the wake
of the EU referendum but says it still expects the market to provide
It comes after yesterday's figures for the construction sector
which showed its worst performance in seven years
in a study carried out largely before the referendum.
Gillain Econopouly is Head of Policy and Research at the Construction
Can we take a step back? Those numbers, the worst in seven years or
something, before the referendum, what's the problem, what was the
problem behind that? Why? Is construction down?
We are expecting to see the drop in PMI. A lot of construction firms
said they were holding back on investment or delaying projects
because they didn't know which way the vote would go.
Persimmon has said there are still opportunities, but companies may
still be flexible. Construction we tend to think of as just houses, it
is really reliant on infrastructure. It strikes me the industry needs
some reassurance in terms of infrastructure, roads, railways, to
save those jobs. Absolutely, housing is really important, but
infrastructure has a huge role to play. The more reassurance is that
governments can give employers, the more confident employers will feel
and that will help them train their staff which is crucial of the -- for
the country. Thank you, I said your name wrong again! LAUGHTER
I want to bring you some more BHS news. More evidence, an interview
that Adam has done, the former owner of BHS describing the ?2.6 million
that he took out of the company, he says it is a drop in the ocean. It
is the first interview there, you can watch it on the website.
You're watching Business Live - our top story.
With Brexit on its way, some of the UK's top figures are holding these
meetings today to try to forge a path forward. Later today the UK's
Finance Minister will be discussing the vote with bank bosses. George
Osborne is already talking about how the finances will be affected by
what he calls a cyclical downturn as a result of Brexit.
A quick look at how markets are faring.
To losses in Germany and France are a little lower this morning and a
pound will buy you $1 32 cents. As part of our special series,
we've been assessing the impact And asking whether there
are opportunities as well as risks. But what about higher education -
and the free movement of students from across the European Union
who can choose to study and work There are currently 125,000
EU students in the UK, and they're entitled to similar
loans to those offered And those EU students at UK
universities generate ?3.7 billion - that's around $4.9 billion
for the UK economy. Between them they support more
than 34,000 jobs in the UK. Leaving the EU could force students
from within the Union to pay much higher fees of up to $46,000
a year to study in the UK and remove their access
to the British student loan scheme. In the run-up to the referendum,
Leave campaigners said they would protect the money
universities receive But there are still no details
on exactly how this would happen. Mark Featherstone-Witty, founding
principal and Chief Excecutive of The Liverpool Institute
for Performing Arts joins us. I'm sorry, it is a long name. We
pronounce that one right! Talk us through what Brexit means for you.
You have the students from the EU coming to Liverpool. Not just the
EU, students from around the world, a third come from outside the
country, a third come from outside of Europe from those. As it happens,
for some bizarre reason, we had... Currently we have three students
from the EU and this year 23 have started to study with us. The
interesting thing that has happened, nobody knows what is happening, do
they? You are doing a wonderful job trying to piece it all together, but
anybody can guess. Joe Johnson who it happens our central body met on
the day that the announcement was made about Brexit, said like a lot
of government ministers, it is business as usual. You have to
remember the universities that everything is on a three-year cycle,
they are three-year courses. There is a contract that universities
enter in with those students, you cannot stop it part of the way
through. You are breaking your contract with them in a way. I
believe that it will take three years anyway to work through. You
cannot accept people and say I am terribly sorry, you cannot be here
any more. It will not be fast. We will check in with you each year!
LAUGHTER We night to get an inside look and
feel for the person we are chatting too. How did you get involved? You
come from a showbiz background, you are without a mobile phone, who
doesn't have a mobile phone? I love this, a showbiz background! In the
end it was more of an entrepreneurial background although
I did spend some time acting. One of the interesting things, you had a
picture at the beginning of we are going to talk this person from the
performing arts and you showed a picture of people on the stage
dancing. The thing I would like to say is everyone who is watching and
indeed to you, it is called show business for a reason. It is shallow
and business. 76% of those working in the entertainment business
ourselves employed. -- it is show and business. Those people cannot
just be luvvies, they have to manage their business lives. 84% of SN
evens in the performing arts have less than three or four people. --
SMEs. It would be crazy to run the performance arts institution that
did not teach business to everyone. What is so interesting about that is
you need to teach students to deal with the real world and be their
agents and avoid sharks and deal with casting and that is the
business of it. It is money in exchange for a service and they need
to be worldly wise. Correct, exactly right. Lovely, nice to see you. Time
is against us, I would love to talk some more. Thank you very much. We
have a tweet, how enthusiastic are these guys, they definitely had
their Weetabix this morning! It is you! LAUGHTER
Thank you for coming in. He has gone!
In a moment we'll take a look through the Business Pages,
but first here's a quick reminder of how to get in touch with us.
We will keep you up-to-date with insight and analysis from the team
of editors from right around the world and we want to hear from you
as well. Get involved on the business website on the BBC. You can
find us on Twitter and Facebook. We are on TV and online, whenever you
need to know. Sue is back to talk to us about the papers. Given all that
we have seen about George Osborne wanting to cut corporation tax in
the UK, and extra tax on tech firms to pay for things in San Francisco.
Property prices have gone up because of the influx and the success of
these tech companies. It is about people who have not benefited from
the boom. The global income, the inequalities that felt around the
globe. People who felt left out, their housing costs have gone up,
they are asking the tech firms in some princes go to pay. The problem
in putting this kind of thing together and the chances of success
are very low because although it is populist, trying to get tech
companies... What is the definition of a tech company, where is San
Francisco starting and ending? It will be problematic. The
protagonists are saying many of these tech companies have Balanta
the efforts that are global and they need to do something more. Many are
already playing the statutory rate of tax. That is in addition. -- they
have charitable efforts that are global. The EU will get more work
done with Britain gone. Really? Stay tuned. Yes, but there is a lot of
water to go under the bridge to get Britain gone. There will be a lot of
work in getting rid of us! Getting Britain gone! That will be the quote
of the day. Always a pleasure. But policymakers will try to work out
what is happening next, I will stay across the full details, there is
full coverage throughout the day across the BBC and on the website.
We will see you later, plenty more business news, you have a little bit
more. We will see you soon, goodbye!