11/07/2016 BBC Business Live


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Giving reassurance over the 'special relationship' -the UK's finance


Minister flies to the US for Brexit talks Live from London,


that's our top story on Monday the 11th of July.


George Osborne heads to New York to tell American investors that


Britain leaving the European Union is an opportunity and not a worry.


Also in the programme, Aaron's in Farnborough.


It is the Farnborough International airshow, one of the most important


aviation events. Despite the care of optimism among big industry chiefs


gathering, there are some headwinds facing the passenger jet business. I


have the boss of bowling joining us live very shortly.


We are 30 minutes in in London and there are more


And we'll also be hearing from the head of Boeing,


one of the world's largest global aircraft manufacturers on everything


So today we want to know when it comes


to travelling by air what is most important to you?


Bigger seats, more leg room, or is just about security?


The British Finance Minister is today flying to New York


for talks with major investors in an effort to strengthen trade


links between the US and the UK after the vote to leave


In a piece for the Wall Street Journal George Osborne said that


improving ties with the US is now a "top priority".


The two countries are each other's largest investors,


with almost $1 trillion dollars invested in each other's economies.


In fact the US invests 10 times more in the UK than it does in China


while the UK invests 50 times more in the US than China does.


Additionally a million people in the US work for British companies


with the same number working for American firms in the UK.


Andrew Walker is a BBC economics correspondent.


Andrew, we are hearing about the numbers involved from Sally there.


told we would be at the back of the queue for US- UK trade deals.


that by President Obama, but you have to bear in mind that he is not


the person managing the queue, as it were, it will be his successor.


There is no question that for the US, the economic relationship


with the EU will be a higher priority. It is a bigger economy


than the UK. Having said that, the UK is no minnow. Because of the


investment relationship in particular, it will be a big deal.


The UK, bearing in mind that the United States the biggest single


export market, clearly, it is a very important relationship.


For the US, important. Maybe China and the rest of the EU are bigger,


but not one to be ignored. In terms of deals that are currently


in place. We have this massive deal going on


between the US and Europe, TTIP. What does this mean for that, do you


think? It means that Britain is ultimately


not going to be a partner to that deal as it stands.


Therein mind that we shouldn't assume


that -- bear in mind that we shouldn't assume that that


deal is nailed down. It has a long way to go and it is controversial,


particularly on the European side. There are some provisions that are


absolutely loathed by political absolutely loathed by political


forces in Germany and here. Some people see it as a threat to the


National Health Service. Some are concerned about provisions for


companies to sue governments. The other point that campaigners for the


Leave vote would make is that it is a lot easier to negotiate for one


country than it is coordinate the negotiating positions


of 28 members of the EU. The future, I think, for TTIP is


deeply uncertain, but it will clearly be on Mr Osborne's mind


while he is in the United States. Thank you, Andrew.


Eurozone finance ministers will today meet in Brussels


to discuss the state of the bloc's economies.


High on the agenda will be whether or not to impose fines


on Spain and Portugal for breaching the Eurozone's Stability


Both countries have been running large budget deficits


which exceed the agreed limit of 3 percent of GDP.


Deutsche Boerse says it's considering lowering the approval


threshold for its proposed merger with the London Stock


The German exchange is concerned that the threshold could be hard


to reach with the current structure of its voting shareholders.


If the deal goes through, the tie-up will create the world's


The outlook for the global economy remains grim despite it having


overcome the impact of the 2008 financial crisis.


That's the verdict of the world's 20 largest economies who have


been meeting in Shanghai for a G20 summit.


In June the World Bank cut its forecast for the global


economy in 2016 from 2.9 percent to 2.4 percent.


Let's take a look round the world at what's business stories


First, the success of a new Pokemon app is good news for Japanese


gaming company Nintendo - who's shares are soaring.


Ashleigh Nghiem has been following the story.


Some argue about -- arguing about the value of these things and say it


is hard to gauge the value of companies that are not making


profits. Big profits expected for airline


manufacturers. The Farnborough airshow is the


biggest international show of its kind, I think.


Let's look at some other stories. Among the big winners on the markets


today, Japan are doing well. First, the success of a new Pokemon


app is good news for Japanese gaming company Nintendo -


who's shares are soaring. Ashleigh Nghiem has been


following the story. Nintendo shares have surged 25%


today. Since its debut last Friday, Pokemon Go has added $7 billion to


the company's market value in just two days. What is the fuss about?


The game is a clash between reality and fantasy. It gets people to move


around their neighbourhoods to catch virtual Pokemon characters using


their smartphones. Nintendo was late to move into mobile gaming, but at


least one analyst has said that Pokemon Go would need to bring in


more than $150 million each month to have any meaningful impact on the


firm's profits. That is a pretty high number. Good


to see you, Ashley. Look at the close in Tokyo - up almost 4%, a


really good performance despite the fact that the yen is still extremely


strong in relation to the dollar. Hong Kong followed suit. US payroll


figures came through better than expected, which boosted trade in


Asia. Japan's president got a majority in the upper chamber, which


would allow him to push through some reforms. You can see gains are


particularly strong in Germany and France. We will talk some more about


the trading day in a moment, first, here is some era in New York to talk


us through what to expect. -- Samira. Markets are hoping for a


lift this week. The economy had 287,000 new jobs in the month of


June. Demand is likely to pick up, good news for an economy that


depends on consumer spending. Numbers on consumer prices,


industrial production and consumer sentiment will also be released and


could add more good cheer for investors. In earnings news, JP


Morgan Chase will kick-off the US bank earnings season, whilst Fargo


will announce results. Joning us is Maike Currie,


investment director Quite a lot going on, but such a


positive note to start the week across the board. Yes, and it is


thanks to Friday's US job figures. Asian markets have risen


significantly. Not as strong a week as we expected, though. The Nintendo


news, it highlights the importance of tech. It is a core part of the


Japanese market. The question it raises is the credibility of


negative interest rates. The bank of Japan has moved into that negative


territory, but still its currency is very strong. Looking ahead, there


are various things going on in the US. We had the payroll numbers on


Friday, which was positive. The previous month, it was that nasty


surprise, not many jobs added to the economy. Give us your thoughts on


where we are rat. There is a lot of negative news about the UK


referendum and the negative impact of that. -- where we are at. I don't


think we will see the US raising interest rates in July, probably not


in September, but perhaps in December, which means it will be a


full year since the last rate rise. Thank you for joining us. We will go


through the papers shortly. Aaron is at Farnborough.


Yes, it is one of the most important aviation events on the planet. Think


big, think huge business, hundreds of billions of dollars of deals


taking place here on the grounds of this airport. This year, there are


some headwinds facing the industry. I have the big boss of bowling, he


is standing in the wings, and he will join us live very shortly.


Britain has enjoyed a generally strong economic recovery, but not


all parts of the country are feeling the benefits. Then Thomson is in


Skegness. He has been talked -- Ben Thomson. He has been talking to


local businesses about boosting the economy in seaside towns. It is


gloriously and quiet, but the problem is about how to get people


here for the for the rest of the year. It is about getting more


people coming here, more people working here and crucially, getting


more people spending here. Craig Leyland is with me this morning. We


look around and it is a glorious morning - you would wonder why


people wouldn't want to come, but it is not always like this, and the


challenge is to get people here all year round, how do you do it? We


have about half ?1 billion a year of a tourist economy. It is about how


we maintain that and make it an all year round economy. We are seeing


inward investment from local businesses, and we are looking to


attract outside business. We have a premier in planned, subject to


planning permission, which will raise the profile. It is about


getting infrastructure in place. It is cheaper for people to go overseas


in many cases, but it is about investment in roads, railways.


People are sane you can't get a meal after 6pm in some towns, and you


can't get a train after 8pm to get home. We need to sort out that


stuff. That's right. Those criticisms are well founded. I


attended the British hospitality Association conference two weeks


ago, where all these issues were raised. This is about making


recommendations happen. We have to look at infrastructure. Rail


infrastructure is another issue. Getting people here is critical. We


have blue flag beaches here, they are a fantastic attraction all year


round. We're cleaning them first thing in the morning. We have lots


to offer. That is Ben, who is talking to politicians and leaders


there. Aaron is at Farnborough. We are forever you could want us to


be. -- we are wherever you could want us to be.


This is Business Live. George Osborne is picking up the special


relationship, going to the US for post-Brexit talks. All of the


markets are in healthy shape, making gains at the start of Monday.


And now let's get the inside track on the world of aviation.


The Farnborough International Airshow is under way.


It is a huge event that takes place every year.


Again we can expect deals worth tens of billions of dollars to be done.


All the biggest players in the industry are there along


of course with our very own Aaron Heslehurst


Where are you? I am here! As you keep saying, I am at Farnborough


Airshow! Lug around! It is certainly one of the most important aviation


events of the year. For the lay people, when we think of


Farnborough, we think of the wonderful displays, the weapons of


war, commercial aircraft doing their thing in the sky. Sometimes we


forget that behind the scenes there are chalets and bungalows and


pavilions behind the airport where big deals are being made. Every two


years, this airshow, the last one, over $200 billion of aircraft orders


placed. This year, some are saying perhaps not as big in terms of that


number in terms of orders because of headwinds facing the industry. Let's


find out. We have one of the biggest aeroplane makers in the world


without, Boeing, and I am joined by the CEO, the President, he is


everything. Dennis, welcome to Business Live. Boeing is 100 years


old and you look pretty good for your age. Not bad for 100 years! We


are a great company and we will celebrate the centennial this


Friday. Let's talk about Turkey. You had a cracking year in 2014 at


Farnborough. Even last year, some great borders, a lot of aeroplanes


on the order books. How is business given the global economic climate?


Generally strong. We have 750 commercial aircraft in backlog. Our


orders are about 121 this year. We have tough economic situations


around the world but we still sees strong passenger growth overall.


Some airlines are hesitant, going forward, about the current climate.


They are delaying their orders. Have you seen that? We continued to see


strong orders in the narrow bodies, small aircraft, worldwide. Some


hesitancy in the wide bodies, which is where we see market demand and


economic uncertainty. Over the next 20 years, we still see global market


demand for 99,000 new aircraft. Wow. Despite Chinese pick-ups? --


hiccups? We still see passenger growth in China at 15 to 30%. Back


to the narrow bodies, short to mid range. The Boeing 737 Max is your


competition to the Airbus 320. A little birdie has told me it has


been outselling yours. Not really. We launched the Max about one year


after Airbus, and since then it has been about 50-50 market share. We


have sold more than 200 maxes and we will be flying it at Farnborough for


the first time. Some may not know this, but UK aerospace industry is


the second-largest in the world the United States. It employs 130,000


people and contributes billions of dollars to the economy. I guess that


will be highlighted today. You are going to meet the Prime Minister,


David Cameron, and he is going to put pen to paper on a new deal. We


are excited about our growth in the UK. It is our third biggest Boeing


operation globally. Great supply chain, great technology, great


talent, and we will be announcing additional growth and investment as


part of our prosperity initiative to Drake, including great news about


the PA. That is a naval aircraft. And the Prime Minister will be


signing an update, or a deal on updating the Apache helicopters. You


started as an intern at Boeing 30 years ago. This has got to be an


American success story. I started as an engineering intern in Seattle 30


years ago and it is an extraordinary privilege to lead the company today.


And think about what the world has done in terms of changing in the


last century and what aircraft has done. Walking on the to walking on


the moon, from riding horses to flying aircraft. To have the


privilege to lead this company at our centennial is a privilege. The


future is even greater. It is phenomenal. Where this industry has


gone and where your company has gone in 100 years. You wonder what next?


How do you go beyond the Dreamliner? Composite material and high-tech


technology. Aeroplanes have been the same for lots of years, fuse a


large, wings and a tail. We are looking at commercial aeroplanes to


make them safer, more efficient and environmentally friendly. We are


looking at higher speed transportation, so maybe a future


where supersonic aircraft can get you anywhere in the world in an hour


or two. We are now building the first rocket to take the first human


to Mars. That is not going to be me! Dennis, we appreciate it and thank


you for joining on Business Live. The


Chinese are here in a very big way. For the first time they have their


own national pavilion and the Chinese are saying they are open for


business. The Chinese say they are ready to compete with the big guys.


Plenty more from Farnborough Airshow throughout the day. See you soon.


Thank you. He will be there all week, so we will hear from him. You


could hear the engines or the world's largest hairdryer behind


him! We asked you to get in touch with your thoughts on the most


important thing when it comes to air travel. Viewers have said that he is


like a boy in a candy store. You have also been tweeting us about


that question that what is most important to you. James says troops


service that does not feel economically calculated or


artificial. Attention to fine detail when I am flying. Johann said price


and legroom in particular. Boeing aircraft are more legroom than ever.


Let us know if you are watching from Airbus. Either they have something


to say. And this one, security and security, nothing precedes it. Maike


Currie is with us in the studio. You are from South Africa and you do


that flight all the time so what is important to you? It is a long


flight, 12 hours. Comfort, service and the in-flight entertainment


system needs to work. That is a good point. I did a 16 hour flight from


Sydney to Dubai and the entertainment system was broken in


the seat and I only had the channel that gives you the food of the


interview with the chief executive! When I go on a flight with my


family, three little boys, my challenge is getting to the end of


the flight without drinks down my front. If I can get to the other end


clean, I have achieved something. And that is not me spilling! The


children! I am not clumsy. Other stories in the papers now. Theresa


May, one of two women vying for the new leadership role of the


Conservative Party and therefore new Prime Minister of the UK. She is on


a corporate crackdown on the front page of the Financial Times. Very


interesting. Theresa May is framing herself as a one nation leader. If


there is anything that the European Union referendum revealed, this is a


divided nation. She is looking at the corporate system in particular


to build on the policies introduced by David Cameron, such as cracking


down on non-Dom is paying tax, the buy to let crackdown and just a


fairer system. Moving towards the centre ground, which some say is a


risky strategy, because she needs the support of the older right-wing


Conservatives. It'll be interesting to see how it out. In the article,


she is talking about making the annual shareholder vote on corporate


pay not just advisory bookbinding, so that is a lot power. We saw BP in


the headlines this year because of the unhappiness about chief


executive pay. Leadership change in the UK and in Japan it is the status


quote with Shinzo Abe getting the majority he needed in the upper


house in elections on Sunday. Does this mean more stimulus? Markets are


betting on that but will he do that? He needs to because there is an


expectation that he needs to do more. It is an interesting election.


The younger vote came through. They dropped the age from 20 to 18, so


lots more younger voters voted. There is a question over whether the


voters are backing Shinzo Abe or whether they are disillusioned with


the opposition. Thank you for coming in to go through the newspapers. And


thank you for your company. There is much more from Farnborough later on


the BBC. Stay with us and have a good day. Goodbye.


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