08/07/2016 BBC Business Live

This is Business Live from BBC News, with Sally Bundock

Trading on an old relationship - the UK's Business Minister

is in India today as he begins a global mission to drum up support

Live from London, that's our top story on Friday 8th July.

Flying the flag for British business in a post-Brexit world.

Britain's Business Secretary, Sajid Javid, is in India

today for the UK's first post-referendum trade talks.

in Mumbai to discuss the future of its UK steel operations.

It is expected to pause the sale of the main Port Talbot plant,

but go ahead with the sale of its other speciality business.

And Asian markets were cautious, awaiting the latest jobs data

And we'll have our business editor Simon Jack with us to take us

through a tumultuous week on currency markets -

as well as the problems storing up in Europe's biggest banks.

And of course do get in touch with us throughout the programme

about the stories we're covering - just use the hashtag #BBCBizLive.

The UK is launching its first trade talks since the vote to leave

the EU, as Business Secretary Sajid Javid meets the Indian

He will discuss how the trading relationship with India might

work with the UK outside the European Union.

The Business Secretary will also visit the US, China,

Japan and South Korea in the coming months.

India is the third biggest foreign investor in the UK, and total trade

between the two countries was worth over $21 billion last year.

Commonwealth countries, including India accounted

for about 10%, or ?47.8 billion, $61.81 billion, of UK exports

in 2014, whereas about 44%, or ?228.9 billion or $296

In total, the EU has trade agreements with 52 countries

and it is expected the UK will need to re-negotiate all these once it

The UK's Business Secretary, Sajid Javid will meet Tata's

chairman Cyrus Mistry in Mumbai today ahead of a Tata board

India is the first country where a Yogita Limaye joins us now.

India is the first country where a Sajid Javid will be held these kind

of discussions. Trade between India and the UK is roughly $20 billion,

and growing. Even so, the UK is only in's 12 largest trading partner, a

situation it has been trying to change. India has been separately

negotiating a free trade agreement with the EU for several years, but

negotiations have stored on some issues. And so even before the

Brexit Road, many from industry here were saying that the UK and India

should forge a separate trade relationship. And now of course,

since we have of the referendum, rebel here are saying that this

could be an opportunity, because the UK would be free to strike a deal

with India without thinking what the EU wants. That is the positive side

of things. At of course there are many Indian companies which have big

investments in the UK and who are worried. They see the UK as a

gateway to Europe. And so they are concerned about access to that

market. Those questions are likely to come up in the meeting between

the finance minister and Sajid Javid. Before that he will be here

in Mumbai meeting the bosses of Tata Steel. Again, the Brexit vote has

been occasions for the company, which has operations in the UK but

also in Europe, in the Netherlands. About a quarter of the steel that it

produces in the UK is sold in Europe, so that is a key market.

Will be a concern not just for Tata but also for potential buyers.

That's why there are expectations that Tata might pause the sale

process of its British business operations. And we will have a lot

more detail on that from Simon Jack, our business editor, who will be

joining us in about five minutes. Four of the biggest US banks have

committed to helping maintain London's position as a global

financial hub after the UK In a statement, the banks

and Chancellor George Osborne said they would work to ensure London

"retains its position". It was signed by JPMorgan,

Goldman Sachs, Bank of America Merrill Lynch

and Morgan Stanley, as well as Consumer confidence in Britain has

seen its biggest slump in 22 years following

the referendum on June 23rd. That's according to market

research company GfK. The survey tracks people's

willingness to make big purchases as well as worries

about their own personal finances It found a marked deterioration

in confidence across regions and age groups - and among people

who had voted to leave the EU as well as those

who wanted to Remain - although the latter

group were more gloomy. Tata Steel is expected to announce

today that it will pause the sale of most of its UK business,

including its Port Talbot plant. However, it will proceed

with the sale of its speciality steel-making business,

which employs 2,000 people The company says it wants

to consider the options and assess Now let's get the latest on the

developing story in Dallas, where five police officers have been

killed and six wounded by sniper fire. We got an update from a

reporter there are not so long ago. Currently we are in negotiations

with the suspect involved in the shootings at the garage in downtown

Dallas. This suspect we are negotiating with for the last 45

minutes has been exchanging gunfire with us and not being very

co-operative in the negotiations. Before I came here, I asked for

plans to end this stand-off, and as soon as I am done here, I will be

presented with those plans. We can speak now to Peter Bowes, in LA.

This happened during protests about two recent fatal police shooting is?

Yes, it was one of many protests taking place in cities around the

United States over the last 24 hours also, protesting at the shooting of

two black men in separate incidents in Louisiana and Minnesota. This was

taking place in downtown Dallas. It was a similar sized protest to the

one in New York City. It was a peaceful protest in Dallas, up until

the shooting started. At that point, there was a certain amount of panic

and chaos, as the crowd tried to disperse and people tried to get to

safety. Police chief of the lesson later said he believed two snipers

were responsible, snipers, as he put it, in an elevated position above

the crowd, who were targeting police officers on the ground. We now know

that three people in fact are in custody, and the fourth is holed up

apparently in a parking structure in Dallas. There has been an exchange

of gunfire with the police, and they are trying to negotiate with this

person, who the police say is not negotiating. The person has made a

number of threats, saying that the end is coming, that they're going to

hurt and kill more police officers, and saying that there are bombs all

over the place in downtown Dallas. This is a situation which is far

from over. The police are still describing it as an active crime

scene. Do we know weather or not all of the suspects have now been

located, if not rounded up? No, we do not know that. In fact the police

chief said they do not have a complete comfort level that all of

the suspects have been found. The indication being that there could be

other people involved in this. What he did say, with some certainty, was

that he believes that these people have worked together, that they were

acting together. He said that they had triangulated in different

positions with their rifles, aiming at the people on the ground,

specifically the police officers. He said it seemed as if they had some

knowledge of the planning of the route of the March, the progress of

the demonstration through downtown Dallas, implying that a certain

amount of planning and perhaps intelligent planning with some in

fight -- inside information perhaps, as to what had been planned for the

route of this protest. For now, Peter, thank you very much. Any more

news on that, we will update you. We can show you how the markets have

been trading across the world. In Japan, closing down just over 1%.

Hong Kong, similar scenario. Among the real movers, energy shares, by

the energy companies Yadav related to that sector. We have got the oil

price down quite significantly yesterday. That has caused some, not

serious nerves, but it has had an impact on trade. Also we are looking

ahead to the US jobs data, which comes out later. And if I can

quickly show you the European markets, which all closed about 1%

higher yesterday's. All headed in the right direction for the time

being. A lot of nervous trade today ahead of the jobs figures coming out

later in the US. The last time they were released, it was a real

surprise. The US economy, not adding as many jobs as many had predicted.

We can hear from Samira Hussain, in New York, as to what we can expect

on that number to day. The latest US jobs report comes out on Friday. In

the last month, the US economy only added 38,000 jobs, nicking it the

worst employment report since the autumn of 2010. Given a court in

dismal employment numbers, some are calling the June jobs report the

most important of the year, even though America's central bank has

already signalled it will not be raising interest rates any time

soon. But the Federal Reserve will still be paying attention to these

numbers, specifically, they will be looking for increases in how much

people are being paid. That will be one sign that the labour market is

getting stronger, and a clear reflection of the overall health of

the US economy. Still to come... As we mentioned, Simon Jack will be

with us to talk us through some detail of the situation with regards

to Tata Steel. We'll have the BBC's

business editor on the show, taking us through the realities

for people and companies You're with Business

Live from BBC News. UK energy prices climbed

to near nine-month highs in the aftermath of the EU

referendum, as the market began Let's speak now to Jamie Stewart,

electricity editor at ICIS. How have energy prices been affect

did so far by the Brexit news? So far, there has been no direct

impact. What we do see is In terms of what we have

mentioned already, the fact that there has been a lot of power plant

closures in the last year, the UK energy has had a massive

transformation, in many ways. Looking ahead now, what are the key

issues? Well, over the last quarter, we have really seen mass coal plant

closures, both for economic and environmental reasons. This means we

are now burning a lot more gas than we were this time last year, in

order to fill that supply gap. Price of gas has risen over the last

quarter. Just, we are now looking at a 9% increase. Electricity, 13%. --

gas. That more expensive gas being burned in our power plants raises

the energy price overall. Thank you so much for joining us. Jamie

Stuart, electricity editor. This is Hammerson expanding in

Ireland. Lots of concerns about Brexit will mean for some of the big

cities here in the UK. Of course, Dublin with its far more generous I

suppose corporate tax level, lots of businesses might be looking to

relocate to Dublin or Berlin as a result of that Brexit vote.

Interesting comments coming out from the retail analyst Nick Bubb at the

moment. Still to come on the programme, as

well as the rest of the business news we will be right across

developments in Dallas where five police officers have been killed and

six injured. That's developments taking place overnight. We will

speak to a reporter outside the hospital in central Dallas where the

wounded police officers are being treated.

Now let's talk some more about Tata Steel. We are expecting various

announcements today about its UK business.

Including the Port Talbot plant. Plans to find rescuers for this deal

had been thrown into doubt by the Brexit vote. According to Bloomberg

they're saying four out of the seven potential bidders have backed out

since the referendum. The struggling business in the UK was put up for

sale in March T employs about 11,000 people at plants across the UK

including the huge Port Talbot plant in Wales. But it's currently losing

around ?1 million a day. One of the key reasons why is the

price of steel. Slumping since its peak in 2011. Although it has been

recovering in recent months. Global demand has been dropping, whilst

there's been an oversupply in steel, particularly a lot coming from

China. As promised here is Simon jack our business editor.

Today is critical really. Two things are going to happen today. The UK

Business Secretary is in Mumbai. He is going to meet the chairman of

Tata before a board meeting at which two things I think will happen. One

is that they will say they're going to sell off another bit of their

empire, if you like. This is a specialty steel business in, those

people will have certainty, yes there is a buyer for those. The

large share of the business that includes the plant in Port Talbot

and employs 9,000 people, that we expect them to hit the pause button

on that. We talked about this before. Back in March, Tata was in a

hurry to get rid of this business, it said it was losing ?1 million a

day, we want to get shot of it as quickly as possible, there was a

worry if nothing happened in a short period of time it would shut the

doors and that would be bad news for people. Since then they've become

more relaxed. That's for a couple of reasons. First, the steel market has

improved a bit since back then, prices - they're not losing so much

money, they can relax a little bit. The second is the Government has

been showering incentives or inducements on anyone who will keep

this plant going. That includes, they've offered to take - to provide

hundreds of millions of loans, take up to a 25% stake, that was

controversial, that's part nationalisation. They've looked at

one-off legislation to reduce the burden of the enormous pension fund.

None of the bidders wanted to take that as it is. They're waiting to

see whether consultation on that legislation means that burden will

be redo you gossed, either -- will be reduced either for Tata or new

buyers. The uncertainty isn't just coming out in the financial markets

and the commodity markets, we are seeing Italy's lenders really on the

edge. Do you think this is the new banking crisis we will see across

Europe? Italy's banks have always been a little shaky, what they

didn't do, they didn't set up a bad bank to put loans in. What we have

seen in the last few weeks and months, particularly since Brexit,

is we have seen the idea that we might lower interest rates again.

Everyone thinks that's great for everyone, lower interest rates,

markets go up. But it's actually pretty bad for banks because they

make money on the difference between what they borrow and lend at and if

interest rates go lower and lower, that margin, the net interest margin

they call it gets compressed. Also, the Italian economy hasn't grown

hardly from the last five, six years and if we get a down town because of

Brexit a poor economy, higher losses on loans, it's a problem for them.

How big a deal is the situation with the Italian banks. The authorities

said they put this money aside, we have this escape route. There is a

escape route but it's controversial. By the letter of the law they're not

supposed to do this. There are state aid rules as to what happens about

what you can do. Those have changed about whether you can put money into

banks. I guess, we all know to our cost, when banks go bad it costs

everyone loads of money. Banks play by different rules, they're not like

normal companies, they're the blood stream of entire economies. I

suspect that a deal will be done. A way to help them will be found. It's

not just Italian banks. If you look at Deutsche bank, that's trading at

30% of what it's worth on paper. There are banking issues throughout

the European Union. You could argue given its systemic importance that

is the most dangerous bank in Europe. Too big too fail.

Definitely. If you think about it, history and Germany's past t used to

be hand in glove with the Bunde bank. They'll be keeping an eye on

that. Thank you very much. We will leave it there.

Let's continue with the situation in Dallas.

We have been hearing the shooting dead of five police officers at a

rally there. Several others are still fighting for their lives in

hospital. One woman, Shetamia Taylor,

was at the protest earlier. She brought her three sons along

with her but was injured She's currently receiving treatment

at the Baylor Hospital in Dallas, where Dr Sima Yasmin,

a doctor and reporter for the Dallas Morning

News, is just outside. Earlier, Sima spoke

to her sister Theresa. A peaceful rally, just to show them

that you know it's OK to stand up for who you are and what you believe

in and just a simple message, you know, violence doesn't get you

anywhere. Just come together. Communicate with one another.

That was one reaction coming from the hospital where people are being

treated in Dallas. We are trying to keep you across what's going on.

It's a moving picture at the moment. It certainly is. Dr Sima is on the

line now, we understand from the hospital where those injured are

being treated. I hope you can hear me. Yes, I can. Excellent. Can you

give us a little bit of an update of the situation outside the hospital.

I am outside one hospital in Dallas about two miles east of where the

shooting and protests occurred a few hours ago. This is one of two Dallas

hospitals where we believe the injured officers have been taken to

and injured civilians. The hospital I am outside of at least two cops

are being treated inside as well as the woman we spoke about. She's

currently in theatre undergoing surgery for a gunshot wound to the

leg. She is the woman that took her three sons to this protest because

overwhelmingly we are hearing that this was a peaceful protest. It was

a protest in regards to the police involved shooting of black men and

we are hearing shots were fired as people were leaving the

demonstration. It was around 9.00pm local time when shots were fired and

this woman said her sister said she shielded her sons and she was shot

in her leg at that time and the recent updates that we have are that

six officers have been injured and five officers have passed away. It's

an horrific situation. We understand the police are still dealing with

some suspects. They haven't yet all been rounded up, have they? This is

an ongoing scenario, isn't it? That's correct. In fact, the woman

in surgery now for that gunshot wound to the leg became separated

from her sons and two of them are still in the area which is

considered an active shooting situation, while their mother is

receiving treatment they're not able to leave that area. The latest

reports we heard is that possibly one suspect, we are thinking there

maybe two or three, but one suspect has been neutralised and that's the

word used by police. Some reports saying that suspect may have shot

themselves. Others saying the police may have shot that suspect. In a

press conference a few hours ago the Dallas police chief used the word

triangulation, possibly snipers positioned in a way to kill as many

officers and injure as many officers as possible. There was also a

possible bomb threat. We have had FBI agents in the area investigating

that possibility, as well. We appreciate your time and thank you

for bringing us up to date with what's going on where you are

outside the hospital where people are being treated who were shot in

the overnight developments in Dallas.

We have Michael Houston in to talk through a couple of stories that are

in the business pages at the moment. Because of Dallas we obviously have

to focus coverage there. One story this is in the FT. This is China's

richest man planning to back a sort of rival really to Uefa Champions

League. Tell us more. Yeah, absolutely. I think it's a terrible

idea. China wants to increase its exposure to global football and

wants to attract superstars and bank roll essentially a rival to the

Champions League. We already know how much money goes into global

football already. There is already concerns about sky high ticket

prices and for me I think this is just going to drive ordinary people

away from mainstream football. Too expensive? Too expensive. Another

thing, you never get a Leicester City. That's one of the great things

about the football season this season and we have already seen Euro

2016, England's abject performance. For me we need to focus more on

grass roots and less on this sort of stuff. Michael, we will leave it

there. That's it from Business Live today. Thank you very much. Plenty

more business news throughout the day and on the website.