08/07/2016 BBC Business Live


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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.


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