:00:00. > :00:08.This is Business Live from BBC News, with Ben Thompson and Sally Bundock.
:00:09. > :00:11.Theresa May takes the helm as the UK's Prime Minister today
:00:12. > :00:13.but will she be able to steer the world's fifth-biggest economy
:00:14. > :00:18.Live from London, that's our top story
:00:19. > :00:38.As David Cameron leaves Downing Street, a group of pro-Brexit
:00:39. > :00:44.economists says the UK doesn't need a new agreement with the EU to trade
:00:45. > :00:47.with the single market - and that London can keep its role
:00:48. > :00:54.as Europe's biggest financial centre.
:00:55. > :00:57.We will be hearing from one of those pro-Brexit economists.
:00:58. > :01:01.Odeon and UCI Cinemas are snapped up by Dalian Wanda, the world's biggest
:01:02. > :01:08.And we are 30 minutes into the trading day in Europe.
:01:09. > :01:12.The markets are mixed, with some, like London,
:01:13. > :01:19.pushing the pause button on the recent gains.
:01:20. > :01:21.And we'll get the inside track on those amazing
:01:22. > :01:26.From green screen to silver screen - we'll speak to the boss of a company
:01:27. > :01:31.that put George Clooney and Sandra Bullock into space.
:01:32. > :01:34.Today we want to know, what do you want from Britain's
:01:35. > :01:38.New trade deals, tougher rules on bankers' pay
:01:39. > :01:47.What is on Theresa May's to do list as far as you are concerned?
:01:48. > :02:08.It is another historic day for the UK. They are coming thick and fast
:02:09. > :02:09.at the moment. We are going to get our first female leader for over 25
:02:10. > :02:11.years. As Prime Minister, Theresa May
:02:12. > :02:14.will have to renegotiate Britain's relationship with the EU and bring
:02:15. > :02:16.the country together So what's on Mrs May's to-do list
:02:17. > :02:26.when she's sworn in later today? Well, many would argue first
:02:27. > :02:28.she needs to reassure The pound has rebounded slightly
:02:29. > :02:37.in the last 25 hours but is still close to a record low
:02:38. > :02:40.against the dollar - blamed on the uncertainty
:02:41. > :02:45.surrounding the vote. Mrs May will also need to decide
:02:46. > :02:48.what sort of economic relationship the UK will have
:02:49. > :02:50.with the EU after it That could hinge
:02:51. > :02:53.on whether to accept or reject a deal involving
:02:54. > :02:58.the free movement of people, in exchange for tariff-free access
:02:59. > :03:03.to the common market. She will also have to negotiate
:03:04. > :03:06.new trade deals with 50 nations that currently have
:03:07. > :03:10.agreements with the EU. Pro-Brexit economists have long
:03:11. > :03:14.argued that the UK will be able to get better deals as a stand-alone
:03:15. > :03:19.country and today some of them will lay out their vision for the UK
:03:20. > :03:27.after it leaves the EU. With me is Professor Patrick
:03:28. > :03:29.Minford, an economist and former advisor to Margaret Thatcher,
:03:30. > :03:42.who teaches at Cardiff University. Nice to see you. Welcome to the
:03:43. > :03:45.programme. Sally was running through some of the issues for Theresa May
:03:46. > :03:49.this morning, not least will be the issue of trying to reassure the
:03:50. > :03:52.markets, reassure investors and all others that she has things under
:03:53. > :04:00.control. What will be the top of her to do list? She's got to mean Brexit
:04:01. > :04:06.when she does Brexit and that means basically getting something that is
:04:07. > :04:10.what the people voted for, which has control of borders and controlled
:04:11. > :04:15.laws and regulations. That can only really be done by leaving the EU
:04:16. > :04:19.properly, leaving the single market and going to a unilateral free trade
:04:20. > :04:25.deal with the rest of the world and selling back into the single market
:04:26. > :04:31.as an outsider trader. Of course, that will then lead to some sort of
:04:32. > :04:36.deals with the U -- the EU but from some position of strength, because
:04:37. > :04:39.we will be outside and they will be desperate, actually, for us to give
:04:40. > :04:44.them a market that still gives them the sort of prices they had before.
:04:45. > :04:48.But of course, when we go to world free trade, that will be world
:04:49. > :04:53.prices, much lower than the projected prices inside be used
:04:54. > :04:54.single market, which is a protectionist organisation, so
:04:55. > :05:01.there's a whole bunch of things she's got to do which will give us a
:05:02. > :05:06.good future - lower prices, less protection, more competition. A lot
:05:07. > :05:11.of critics would say that what we may end up with is a fudged deal but
:05:12. > :05:14.equally, that could work in our favour, a fudged deal, whereby we
:05:15. > :05:18.get some access to the Common Market or access that we need, but we also
:05:19. > :05:24.is that many people voted to leave is that many people voted to leave
:05:25. > :05:29.the EU for. Well, the problem about a fudged deal is it is fundamentally
:05:30. > :05:33.the status quo because the rules of the single market are that you have
:05:34. > :05:37.to have free migration and there really isn't a way of fudging that,
:05:38. > :05:42.as David Cameron found when he tried to do that renegotiation. So if you
:05:43. > :05:46.want to get control of your borders and you want to get control of your
:05:47. > :05:52.laws, you really have to leave this outfit and then from the outside, do
:05:53. > :05:57.a deal, a free trade deal, an particular industries, perhaps, that
:05:58. > :06:02.are ones it would suit you to do a deal on, like cars. That is what we
:06:03. > :06:05.are saying. You have to leave the whole thing, get rid of all this EU
:06:06. > :06:11.protectionism, get rid of all this EU regulation, go back to being a
:06:12. > :06:16.self-governing, free trading country and then the EU will want to do
:06:17. > :06:20.deals with us, will want to have a free trade deal because it suits
:06:21. > :06:25.them to have a market where they can sell into at good prices. Away from
:06:26. > :06:28.the EU issue, there is a lot she has laid out she would like to do, like
:06:29. > :06:31.curbing executive pay or making it clear as far as executive pay is
:06:32. > :06:35.concerned, giving competition authorities more powers. But what
:06:36. > :06:39.many people have pointed to is the difficulties she may face when doing
:06:40. > :06:43.that because friendly, she's not got a huge personal mandate, not elected
:06:44. > :06:47.by the population, not particularly a unified party behind her. She may
:06:48. > :06:52.find it very difficult to push these things through, will she not? One of
:06:53. > :06:55.the things about executive pay is a hardy perennial. Everyone is against
:06:56. > :07:00.executive pay but there is no way of controlling it, so it's a no-no and
:07:01. > :07:03.she can say as much as she likes but nothing will be done. I think a lot
:07:04. > :07:07.of these things she will try to unite the party and be straight down
:07:08. > :07:12.the middle. Her biggest problem is Brexit and if she tries to forge
:07:13. > :07:15.Brexit, she'll be in deep trouble because she will be against the
:07:16. > :07:20.popular will. In one sentence, what would you like to see from Theresa
:07:21. > :07:24.May? I want to see this clear vision on Brexit, that it really means what
:07:25. > :07:28.it says on the tin and what the people voted for. Wonderful.
:07:29. > :07:33.Professor Patrick Minford, great to see you. Thank you.
:07:34. > :07:41.Talking of what is on the tin, one member of ten Downing St is going to
:07:42. > :07:44.stay. It is Larry. He has a very important job of catching the mice.
:07:45. > :07:50.It was an issue when the Cameron Smith dim, so he's staying. The
:07:51. > :07:55.question is, is Theresa a cat lover? We will find out. Not packing his
:07:56. > :07:57.bags. He stays. We will find out what he makes of the new residents.
:07:58. > :08:01.Airbus says it's more than halved its delivery target
:08:02. > :08:04.It said it would supply 12 of the aircraft every year
:08:05. > :08:07.from 2018 - that's down from the 27 it delivered in 2015.
:08:08. > :08:11.The aircraft only began breaking even last year but it's now feared
:08:12. > :08:13.the plane could start losing money again, if airlines
:08:14. > :08:19.Amazon customers in the United States are reporting
:08:20. > :08:21.problems completing purchases on one of the busiest days
:08:22. > :08:25.of the year for the site - its so-called Prime Day.
:08:26. > :08:30.The discounted-shopping event promotes its subscription service
:08:31. > :08:33.but Amazon's Twitter account said it was now working to
:08:34. > :08:40.The promotion ran for the first time last year, when the site also faced
:08:41. > :08:46.Revenues at fashion brand Burberry have come in flat at $562 million
:08:47. > :08:48.for the three months to the end of June.
:08:49. > :08:54.It comes as the firm named retail veteran Marco Gobbetti to succeed
:08:55. > :08:59.Christopher Bailey as chief executive next year.
:09:00. > :09:10.Mr Bailey will become president and remain chief creative officer.
:09:11. > :09:20.Let me take you to the Business Live page but as always happens at this
:09:21. > :09:24.time, the Wi-Fi is very slow. Theresa May takes office at ten
:09:25. > :09:28.Downing St today. Full coverage of that. And a bit more on the story
:09:29. > :09:32.Sally was mentioning about the reshuffle at Burberry. Sales down
:09:33. > :09:38.3%, not coming in as a particularly great time for the new boss, who
:09:39. > :09:42.takes over. But remember Christopher Bailey stays on as creative boss.
:09:43. > :09:47.And a deal that has been doubled in the last half hour or so, news for
:09:48. > :09:52.the discount retailer Poundland. Sally will talk you through the
:09:53. > :09:57.details. The story is on the home page.
:09:58. > :10:02.Steinhoff, the South African retail group, has finally agreed to buy
:10:03. > :10:07.Poundland for ?597 million. They did make an offer a month ago but that
:10:08. > :10:12.was rejected at the time. It would seem Poundland has changed its mind.
:10:13. > :10:14.More detail on that story on our website.
:10:15. > :10:22.I hope I didn't make you dizzy by all that scrolling through the
:10:23. > :10:25.website! Talking of dizzy, let's talk about cinema.
:10:26. > :10:27.We're going to talk about cinema special effects later
:10:28. > :10:29.in the programme, but movies are also big business
:10:30. > :10:32.In China, the country's richest man is snapping up Odeon
:10:33. > :10:35.cinemas from the UK private equity firm Terra Firma,
:10:36. > :10:40.It already has plans to jazz up theatres with reclining seats
:10:41. > :10:57.Our correspondent is in Singapore with more details. What can you tell
:10:58. > :11:00.us? This is going to be the biggest purchase in the UK since it voted to
:11:01. > :11:08.leave the EU and it comes courtesy of China's richest man, who is worth
:11:09. > :11:12.an estimated $33 billion. He is buying Odeon and UCI, which are
:11:13. > :11:16.Europe's larger cinema chain, from the London financier who owns the
:11:17. > :11:23.private equity firm terra firma and the deal is worth 1.2 billion in a
:11:24. > :11:26.cash and stock agreement. This will make the Chinese, be the biggest
:11:27. > :11:32.movie theatre operator in the world and by quite a large margin because
:11:33. > :11:34.he already owns a big US cinema chain called AMC. But for the
:11:35. > :11:39.European assets, he's been negotiating to buy this for three
:11:40. > :11:43.years and the deal came because of Brexit. Analysts say that the deal
:11:44. > :11:47.is 10% less expensive than it was a couple of weeks ago because of the
:11:48. > :11:51.fall in the value of the pound, so it looks like the buyer has got a
:11:52. > :11:55.pretty good deal because no UK assets are cheaper for overseas
:11:56. > :12:00.investors like him. Thank you so much. We will keep an
:12:01. > :12:13.eye on that story. Let's have a look of the financial markets. On Wall
:12:14. > :12:16.Street it was all up, up and up. Other stories really boosting
:12:17. > :12:20.sentiment. We've still got the view that Mark Carney will cut rates on
:12:21. > :12:23.Thursday in the UK. There was a bullish sentiment about what Japan
:12:24. > :12:27.might do discriminate growth and, of course, at the end of the week we
:12:28. > :12:31.are looking ahead to China and its latest growth numbers. Let's have a
:12:32. > :12:36.look at Europe. We've seen the market is rising for several days in
:12:37. > :12:39.a row. The FTSE pausing, only down slightly when you think about how
:12:40. > :12:44.much it has gone up in the last few days, but it is taking a force.
:12:45. > :12:49.Germany pretty flat. Among the big movers, Nokia, its shares up and it
:12:50. > :12:53.has raised its forecast, announcing a licensing agreement with Samsung.
:12:54. > :12:55.Specific companies with specific stories on the move.
:12:56. > :12:57.And Michelle Fleury has the details about what's ahead
:12:58. > :13:00.US stock-market investors continue to be buoyed by signs
:13:01. > :13:04.This Wednesday the Federal Reserve's beige book report is out,
:13:05. > :13:06.it provides details about local conditions.
:13:07. > :13:10.Last month pointed to a tight labour market and wage increases.
:13:11. > :13:14.The Federal Reserve is still in no rush to raise interest rates.
:13:15. > :13:18.This week, the Fed's president stuck to his view that the central bank
:13:19. > :13:23.may need only a single rate hike for years to come.
:13:24. > :13:26.He believes the trend in job creation will ease
:13:27. > :13:31.In company news, CSX, the number-three US railway company,
:13:32. > :13:36.report second-quarter earnings, so does Yum Brands, the owner
:13:37. > :13:47.Wall Street hopes profits are tasty this earning season.
:13:48. > :13:50.He's the co-founder and chief executive of online
:13:51. > :14:02.Nice to see you. Let's pick up with that thought from the US. Good
:14:03. > :14:06.figures yesterday amid a time when you would think everyone was a bit
:14:07. > :14:09.nervous. I think everyone is very nervous and Michelle are saying we
:14:10. > :14:13.want some tasty figures. I'm afraid I don't think that's going to be the
:14:14. > :14:16.case from companies. If we see falling earnings per share, it will
:14:17. > :14:20.be the seventh quarter in a row that that has happened and it is the
:14:21. > :14:24.first time that we've ever seen that in the US outside of a recession. So
:14:25. > :14:27.what we've got, and the reason people are nervous, is the fact that
:14:28. > :14:32.companies aren't doing as well as we'd hoped and the stock market is
:14:33. > :14:35.reaching record highs, based on the proportion from central banks who
:14:36. > :14:42.are running the show at the moment. Question for all of us as investors
:14:43. > :14:45.is, is it a worthwhile rally or is what we're seeing actually a bit of
:14:46. > :14:49.hot air and we need to take a close about the companies? That's always
:14:50. > :14:52.the bit of wisdom, take a close look at the companies. Let's look at
:14:53. > :14:56.China because towards the end of the week we are going to get growth
:14:57. > :15:01.numbers from China's refocusing on it and other emerging markets. Most
:15:02. > :15:04.investors and economists have been pretty shocked about how well the
:15:05. > :15:08.China stock market, emerging markets, have performed in the last
:15:09. > :15:12.six months. There is a bit of money flowing out of the UK and Europe as
:15:13. > :15:17.we worry about the political risks into those asset classes. But there
:15:18. > :15:20.is no real reason for it to have happened, except a bit of a
:15:21. > :15:23.devaluation of currencies making it slightly more attractive to invest.
:15:24. > :15:27.And, of course, the possibility that the Chinese have been a bit more
:15:28. > :15:30.exciting with their production numbers and their use of steel and
:15:31. > :15:36.other commodities, which ups Australia and other countries, than
:15:37. > :15:39.we expected, and perhaps than the government forecast. We are hoping
:15:40. > :15:44.for a positive surprise. It would be a real shame if the next couple of
:15:45. > :15:48.earnings from the US and the GDP from China was positive.
:15:49. > :15:54.We speak to the boss of a company capable of putting a man on the moon
:15:55. > :16:08.You're with Business Live from BBC News.
:16:09. > :16:11.When Theresa May takes the helm she's planning a shakeup
:16:12. > :16:13.of company boardrooms, pledging to overhaul corporate
:16:14. > :16:17.governance and appoint more employees through the ranks
:16:18. > :16:23.But will that change the ethnic makeup at the top of organisations?
:16:24. > :16:26.New research today says 70% of employees have faced
:16:27. > :16:31.Lord Ouseley is former chair of the Commission For Racial Equality
:16:32. > :16:40.and founder of Kick It Out, football's equality organisation.
:16:41. > :16:49.Good morning. Let's begin to the route to the top, 70% of people face
:16:50. > :17:01.discrimination. How does it manifest itself? When vacancies occur within
:17:02. > :17:02.management position, there is a management position, there is a
:17:03. > :17:05.mindset amongst the CEO and board members, they have a picture in
:17:06. > :17:09.their mind about who will replace that individual. It is usually a
:17:10. > :17:15.stereotypical more of the same, a white male. Nothing wrong with that,
:17:16. > :17:18.but they never change the characteristics and bring on fresh
:17:19. > :17:22.talent to revitalise the organisation. There is an
:17:23. > :17:27.overlooking of talent from a broader range. It represents a problem, it
:17:28. > :17:31.demoralises those who are fairly close to the top and see themselves
:17:32. > :17:35.being overlooked, and they realise that their talent and ability and
:17:36. > :17:42.the fact that merit is supposed to be the main criterion, when they see
:17:43. > :17:45.others rising above them, they realise with great frustration they
:17:46. > :17:52.are not going to get there. It is wasting talent. It is feeding into
:17:53. > :17:55.disaffection, which a lot of black and minority ethnic people are
:17:56. > :17:59.experiencing who are close to the top but never able to make the
:18:00. > :18:04.breakthrough. What do you want to reason me to do? There are many
:18:05. > :18:08.things, but one of the big areas I think she can tackle as part of a
:18:09. > :18:14.revolution for the boardrooms is to ensure that when contracts are being
:18:15. > :18:17.made available and private companies are competing for them, there is a
:18:18. > :18:25.criterion that they have to demonstrate their performance on
:18:26. > :18:34.equality, diversity, in order to be considered for this contract. We
:18:35. > :18:37.appreciate your time. This is a big issue, it is not just about gender,
:18:38. > :18:38.it is about diversity in the boardroom.
:18:39. > :18:42.Stay with us. Theresa May takes the helm
:18:43. > :18:47.as the UK's Prime Minister today, but will she be able to steer
:18:48. > :18:49.the world's fifth-biggest economy A quick look at how
:18:50. > :19:05.markets are faring. Not a huge amount of move, they are
:19:06. > :19:11.waiting to see. Tomorrow is a big day for interest rates in the UK
:19:12. > :19:22.tomorrow, they are expected to be cut to 0.25%. It is a bit to get is
:19:23. > :19:23.spending if there is a downturn on the way.
:19:24. > :19:25.I guess we will talk about that tomorrow!
:19:26. > :19:27.Now, we often take them for granted these days,
:19:28. > :19:30.those special effects in movies that seem to get bigger and better every
:19:31. > :19:34.But have you ever thought about the companies that
:19:35. > :19:35.recreate all those effects in painstaking detail?
:19:36. > :19:37.Well, The Foundry is a visual-effects company
:19:38. > :19:40.and its software is used in the world's best-selling video
:19:41. > :19:45.Some of its recent work was seen in blockbuster films like Gravity
:19:46. > :19:51.Alex Mahon is the chief executive of The Foundry.
:19:52. > :19:54.She joined the company in November, after it was bought
:19:55. > :19:59.Before joining The Foundry, Alex was chief executive of the TV
:20:00. > :20:04.During her time here, she oversaw the development
:20:05. > :20:07.of internationally-successful TV series such as MasterChef
:20:08. > :20:24.Welcome to the programme. You have been running this company for six
:20:25. > :20:28.months, how is it going? It is fun, because it is an overlap of the
:20:29. > :20:32.creative industries and technology, and that is a rare place to be. You
:20:33. > :20:38.work with artists, people raising the creative bar, but at the same
:20:39. > :20:40.time it is technology, so it is pure software development, and that is
:20:41. > :20:45.unusual. Was it an easy transition, unusual. Was it an easy transition,
:20:46. > :20:50.because it was a different world for you? It is a different world in
:20:51. > :20:55.terms of what we do, but not in terms of the clients, so that is
:20:56. > :21:01.it is not entirely removed. It has it is not entirely removed. It has
:21:02. > :21:06.all changed, virtual reality, augmented reality, and those skills
:21:07. > :21:11.come out of the film and TV industry. This is what I found
:21:12. > :21:15.astonishing, every film nominated for the best visual effects Academy
:21:16. > :21:19.Award in the last five years has made using software that you
:21:20. > :21:25.pioneered. From that position at the top of the market, what separates
:21:26. > :21:31.you? For Lehman, it strikes me that it is computers creating effects,
:21:32. > :21:34.In the best compensated films, the In the best compensated films, the
:21:35. > :21:40.best films with special effects and context graphics, something like
:21:41. > :21:44.spend thousands of hours creating spend thousands of hours creating
:21:45. > :21:49.the scene of space and the Milky Way might take tens of hours. You need
:21:50. > :21:54.are prepared to pay for, that allows are prepared to pay for, that allows
:21:55. > :21:56.you to work 16 hours a day. To give us as he was the sense that it was
:21:57. > :22:02.all shot in space. We can look at all shot in space. We can look at
:22:03. > :22:07.this, talk us through what we are seeing. This is a building up of the
:22:08. > :22:11.also in scenes that you would not also in scenes that you would not
:22:12. > :22:17.necessarily expect, it is not just about creating wonderful seascapes,
:22:18. > :22:20.some more mundane stuff. We used to pick that the green screen was for
:22:21. > :22:26.Superman or only for robots, but now it is used for advertisement,
:22:27. > :22:32.everything we see, because it is quicker, easier to shoot, it gives
:22:33. > :22:33.higher visual standard of what we higher visual standard of what we
:22:34. > :22:39.expect all the time. In terms of expect all the time. In terms of
:22:40. > :22:43.incredibly talented individuals incredibly talented individuals
:22:44. > :22:47.working for companies like yours? If so, is it difficult? The real talent
:22:48. > :22:52.is software engineers and people with a long background in visual
:22:53. > :22:55.computing and image processing, and that is hard to find. Everybody in
:22:56. > :23:01.London finds it hard to find the best engineers. Is it harder because
:23:02. > :23:06.of Brexit? It will be harder to retain the best talent and attract
:23:07. > :23:12.international talent. I would love to talk more, but we have to fit so
:23:13. > :23:16.much in. Nice to see you. It is fascinating. We need more time
:23:17. > :23:18.on this programme! Send in your request!
:23:19. > :23:21.In a moment we'll take a look through the Business pages,
:23:22. > :23:23.but first here's a quick reminder of how to get in touch with us.
:23:24. > :23:29.You can stay ahead with all of the braking business news. We keep you
:23:30. > :23:33.up-to-date with the latest details up-to-date with the latest details
:23:34. > :23:37.with insight and analysis from the BBC's team of editors around the
:23:38. > :23:47.world. We want to hear from you as well. Get involved on our web page.
:23:48. > :23:52.We are also on Twitter, and you can find us on Facebook. On TV and
:23:53. > :24:04.online, whenever you need to know. You have been getting in touch. We
:24:05. > :24:13.have asked, what would you ask Theresa May to do for you? Paris
:24:14. > :24:18.says, cut the best deal for Brexit, diminish immigration to manageable
:24:19. > :24:20.levels, negotiate trade deals with the Commonwealth. That is three
:24:21. > :24:28.things! Nicky says a housing theme, ensure
:24:29. > :24:31.housing is built and make sure we build social housing. That is a key
:24:32. > :24:37.thing at the centre of the referendum campaign. How many and I
:24:38. > :24:43.allowed? Just one? A real established working group on matters
:24:44. > :24:47.of intergenerational unfairness. There is a huge divide between those
:24:48. > :24:51.who have retired, those at the beginning of their working life. We
:24:52. > :24:56.need to see all parties get involved and, with some real ideas about what
:24:57. > :24:58.are the key things that are disappointing people in those
:24:59. > :25:02.different generations and how we can bring people together. They will
:25:03. > :25:10.talk a bit about it with tensions in the papers. We have got one minute,
:25:11. > :25:15.so let's focus on that. ?383 billion on the liabilities hit
:25:16. > :25:20.a record. It is terrible news, this happens because of a couple of
:25:21. > :25:24.reasons. The stock market falls, the gap between what is in the pension
:25:25. > :25:29.fund and what is needed to pay them widens. And the retirement age has
:25:30. > :25:31.not kept up with life expectancy. We have not raised the retirement age
:25:32. > :25:36.quick enough and people are living for longer. It does not work out,
:25:37. > :25:42.the numbers don't make sense. That is in the Telegraph. The sheep are
:25:43. > :25:46.being used for Google Street view, it is incredible. In the Faroe
:25:47. > :25:51.Islands, north of Scotland, ten Islands, north of Scotland, ten
:25:52. > :25:56.different islands, instead of cars, they have sheep. On that note, thank
:25:57. > :26:00.you! We will follow the sheep. See you
:26:01. > :26:04.seem, goodbye.