13/07/2016 BBC Business Live


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This is Business Live from BBC News, with Ben Thompson and Sally Bundock.


Theresa May takes the helm as the UK's Prime Minister today


but will she be able to steer the world's fifth-biggest economy


Live from London, that's our top story


As David Cameron leaves Downing Street, a group of pro-Brexit


economists says the UK doesn't need a new agreement with the EU to trade


with the single market - and that London can keep its role


as Europe's biggest financial centre.


We will be hearing from one of those pro-Brexit economists.


Odeon and UCI Cinemas are snapped up by Dalian Wanda, the world's biggest


And we are 30 minutes into the trading day in Europe.


The markets are mixed, with some, like London,


pushing the pause button on the recent gains.


And we'll get the inside track on those amazing


From green screen to silver screen - we'll speak to the boss of a company


that put George Clooney and Sandra Bullock into space.


Today we want to know, what do you want from Britain's


New trade deals, tougher rules on bankers' pay


What is on Theresa May's to do list as far as you are concerned?


It is another historic day for the UK. They are coming thick and fast


at the moment. We are going to get our first female leader for over 25


years. As Prime Minister, Theresa May


will have to renegotiate Britain's relationship with the EU and bring


the country together So what's on Mrs May's to-do list


when she's sworn in later today? Well, many would argue first


she needs to reassure The pound has rebounded slightly


in the last 25 hours but is still close to a record low


against the dollar - blamed on the uncertainty


surrounding the vote. Mrs May will also need to decide


what sort of economic relationship the UK will have


with the EU after it That could hinge


on whether to accept or reject a deal involving


the free movement of people, in exchange for tariff-free access


to the common market. She will also have to negotiate


new trade deals with 50 nations that currently have


agreements with the EU. Pro-Brexit economists have long


argued that the UK will be able to get better deals as a stand-alone


country and today some of them will lay out their vision for the UK


after it leaves the EU. With me is Professor Patrick


Minford, an economist and former advisor to Margaret Thatcher,


who teaches at Cardiff University. Nice to see you. Welcome to the


programme. Sally was running through some of the issues for Theresa May


this morning, not least will be the issue of trying to reassure the


markets, reassure investors and all others that she has things under


control. What will be the top of her to do list? She's got to mean Brexit


when she does Brexit and that means basically getting something that is


what the people voted for, which has control of borders and controlled


laws and regulations. That can only really be done by leaving the EU


properly, leaving the single market and going to a unilateral free trade


deal with the rest of the world and selling back into the single market


as an outsider trader. Of course, that will then lead to some sort of


deals with the U -- the EU but from some position of strength, because


we will be outside and they will be desperate, actually, for us to give


them a market that still gives them the sort of prices they had before.


But of course, when we go to world free trade, that will be world


prices, much lower than the projected prices inside be used


single market, which is a protectionist organisation, so


there's a whole bunch of things she's got to do which will give us a


good future - lower prices, less protection, more competition. A lot


of critics would say that what we may end up with is a fudged deal but


equally, that could work in our favour, a fudged deal, whereby we


get some access to the Common Market or access that we need, but we also


is that many people voted to leave is that many people voted to leave


the EU for. Well, the problem about a fudged deal is it is fundamentally


the status quo because the rules of the single market are that you have


to have free migration and there really isn't a way of fudging that,


as David Cameron found when he tried to do that renegotiation. So if you


want to get control of your borders and you want to get control of your


laws, you really have to leave this outfit and then from the outside, do


a deal, a free trade deal, an particular industries, perhaps, that


are ones it would suit you to do a deal on, like cars. That is what we


are saying. You have to leave the whole thing, get rid of all this EU


protectionism, get rid of all this EU regulation, go back to being a


self-governing, free trading country and then the EU will want to do


deals with us, will want to have a free trade deal because it suits


them to have a market where they can sell into at good prices. Away from


the EU issue, there is a lot she has laid out she would like to do, like


curbing executive pay or making it clear as far as executive pay is


concerned, giving competition authorities more powers. But what


many people have pointed to is the difficulties she may face when doing


that because friendly, she's not got a huge personal mandate, not elected


by the population, not particularly a unified party behind her. She may


find it very difficult to push these things through, will she not? One of


the things about executive pay is a hardy perennial. Everyone is against


executive pay but there is no way of controlling it, so it's a no-no and


she can say as much as she likes but nothing will be done. I think a lot


of these things she will try to unite the party and be straight down


the middle. Her biggest problem is Brexit and if she tries to forge


Brexit, she'll be in deep trouble because she will be against the


popular will. In one sentence, what would you like to see from Theresa


May? I want to see this clear vision on Brexit, that it really means what


it says on the tin and what the people voted for. Wonderful.


Professor Patrick Minford, great to see you. Thank you.


Talking of what is on the tin, one member of ten Downing St is going to


stay. It is Larry. He has a very important job of catching the mice.


It was an issue when the Cameron Smith dim, so he's staying. The


question is, is Theresa a cat lover? We will find out. Not packing his


bags. He stays. We will find out what he makes of the new residents.


Airbus says it's more than halved its delivery target


It said it would supply 12 of the aircraft every year


from 2018 - that's down from the 27 it delivered in 2015.


The aircraft only began breaking even last year but it's now feared


the plane could start losing money again, if airlines


Amazon customers in the United States are reporting


problems completing purchases on one of the busiest days


of the year for the site - its so-called Prime Day.


The discounted-shopping event promotes its subscription service


but Amazon's Twitter account said it was now working to


The promotion ran for the first time last year, when the site also faced


Revenues at fashion brand Burberry have come in flat at $562 million


for the three months to the end of June.


It comes as the firm named retail veteran Marco Gobbetti to succeed


Christopher Bailey as chief executive next year.


Mr Bailey will become president and remain chief creative officer.


Let me take you to the Business Live page but as always happens at this


time, the Wi-Fi is very slow. Theresa May takes office at ten


Downing St today. Full coverage of that. And a bit more on the story


Sally was mentioning about the reshuffle at Burberry. Sales down


3%, not coming in as a particularly great time for the new boss, who


takes over. But remember Christopher Bailey stays on as creative boss.


And a deal that has been doubled in the last half hour or so, news for


the discount retailer Poundland. Sally will talk you through the


details. The story is on the home page.


Steinhoff, the South African retail group, has finally agreed to buy


Poundland for ?597 million. They did make an offer a month ago but that


was rejected at the time. It would seem Poundland has changed its mind.


More detail on that story on our website.


I hope I didn't make you dizzy by all that scrolling through the


website! Talking of dizzy, let's talk about cinema.


We're going to talk about cinema special effects later


in the programme, but movies are also big business


In China, the country's richest man is snapping up Odeon


cinemas from the UK private equity firm Terra Firma,


It already has plans to jazz up theatres with reclining seats


Our correspondent is in Singapore with more details. What can you tell


us? This is going to be the biggest purchase in the UK since it voted to


leave the EU and it comes courtesy of China's richest man, who is worth


an estimated $33 billion. He is buying Odeon and UCI, which are


Europe's larger cinema chain, from the London financier who owns the


private equity firm terra firma and the deal is worth 1.2 billion in a


cash and stock agreement. This will make the Chinese, be the biggest


movie theatre operator in the world and by quite a large margin because


he already owns a big US cinema chain called AMC. But for the


European assets, he's been negotiating to buy this for three


years and the deal came because of Brexit. Analysts say that the deal


is 10% less expensive than it was a couple of weeks ago because of the


fall in the value of the pound, so it looks like the buyer has got a


pretty good deal because no UK assets are cheaper for overseas


investors like him. Thank you so much. We will keep an


eye on that story. Let's have a look of the financial markets. On Wall


Street it was all up, up and up. Other stories really boosting


sentiment. We've still got the view that Mark Carney will cut rates on


Thursday in the UK. There was a bullish sentiment about what Japan


might do discriminate growth and, of course, at the end of the week we


are looking ahead to China and its latest growth numbers. Let's have a


look at Europe. We've seen the market is rising for several days in


a row. The FTSE pausing, only down slightly when you think about how


much it has gone up in the last few days, but it is taking a force.


Germany pretty flat. Among the big movers, Nokia, its shares up and it


has raised its forecast, announcing a licensing agreement with Samsung.


Specific companies with specific stories on the move.


And Michelle Fleury has the details about what's ahead


US stock-market investors continue to be buoyed by signs


This Wednesday the Federal Reserve's beige book report is out,


it provides details about local conditions.


Last month pointed to a tight labour market and wage increases.


The Federal Reserve is still in no rush to raise interest rates.


This week, the Fed's president stuck to his view that the central bank


may need only a single rate hike for years to come.


He believes the trend in job creation will ease


In company news, CSX, the number-three US railway company,


report second-quarter earnings, so does Yum Brands, the owner


Wall Street hopes profits are tasty this earning season.


He's the co-founder and chief executive of online


Nice to see you. Let's pick up with that thought from the US. Good


figures yesterday amid a time when you would think everyone was a bit


nervous. I think everyone is very nervous and Michelle are saying we


want some tasty figures. I'm afraid I don't think that's going to be the


case from companies. If we see falling earnings per share, it will


be the seventh quarter in a row that that has happened and it is the


first time that we've ever seen that in the US outside of a recession. So


what we've got, and the reason people are nervous, is the fact that


companies aren't doing as well as we'd hoped and the stock market is


reaching record highs, based on the proportion from central banks who


are running the show at the moment. Question for all of us as investors


is, is it a worthwhile rally or is what we're seeing actually a bit of


hot air and we need to take a close about the companies? That's always


the bit of wisdom, take a close look at the companies. Let's look at


China because towards the end of the week we are going to get growth


numbers from China's refocusing on it and other emerging markets. Most


investors and economists have been pretty shocked about how well the


China stock market, emerging markets, have performed in the last


six months. There is a bit of money flowing out of the UK and Europe as


we worry about the political risks into those asset classes. But there


is no real reason for it to have happened, except a bit of a


devaluation of currencies making it slightly more attractive to invest.


And, of course, the possibility that the Chinese have been a bit more


exciting with their production numbers and their use of steel and


other commodities, which ups Australia and other countries, than


we expected, and perhaps than the government forecast. We are hoping


for a positive surprise. It would be a real shame if the next couple of


earnings from the US and the GDP from China was positive.


We speak to the boss of a company capable of putting a man on the moon


You're with Business Live from BBC News.


When Theresa May takes the helm she's planning a shakeup


of company boardrooms, pledging to overhaul corporate


governance and appoint more employees through the ranks


But will that change the ethnic makeup at the top of organisations?


New research today says 70% of employees have faced


Lord Ouseley is former chair of the Commission For Racial Equality


and founder of Kick It Out, football's equality organisation.


Good morning. Let's begin to the route to the top, 70% of people face


discrimination. How does it manifest itself? When vacancies occur within


management position, there is a management position, there is a


mindset amongst the CEO and board members, they have a picture in


their mind about who will replace that individual. It is usually a


stereotypical more of the same, a white male. Nothing wrong with that,


but they never change the characteristics and bring on fresh


talent to revitalise the organisation. There is an


overlooking of talent from a broader range. It represents a problem, it


demoralises those who are fairly close to the top and see themselves


being overlooked, and they realise that their talent and ability and


the fact that merit is supposed to be the main criterion, when they see


others rising above them, they realise with great frustration they


are not going to get there. It is wasting talent. It is feeding into


disaffection, which a lot of black and minority ethnic people are


experiencing who are close to the top but never able to make the


breakthrough. What do you want to reason me to do? There are many


things, but one of the big areas I think she can tackle as part of a


revolution for the boardrooms is to ensure that when contracts are being


made available and private companies are competing for them, there is a


criterion that they have to demonstrate their performance on


equality, diversity, in order to be considered for this contract. We


appreciate your time. This is a big issue, it is not just about gender,


it is about diversity in the boardroom.


Stay with us. Theresa May takes the helm


as the UK's Prime Minister today, but will she be able to steer


the world's fifth-biggest economy A quick look at how


markets are faring. Not a huge amount of move, they are


waiting to see. Tomorrow is a big day for interest rates in the UK


tomorrow, they are expected to be cut to 0.25%. It is a bit to get is


spending if there is a downturn on the way.


I guess we will talk about that tomorrow!


Now, we often take them for granted these days,


those special effects in movies that seem to get bigger and better every


But have you ever thought about the companies that


recreate all those effects in painstaking detail?


Well, The Foundry is a visual-effects company


and its software is used in the world's best-selling video


Some of its recent work was seen in blockbuster films like Gravity


Alex Mahon is the chief executive of The Foundry.


She joined the company in November, after it was bought


Before joining The Foundry, Alex was chief executive of the TV


During her time here, she oversaw the development


of internationally-successful TV series such as MasterChef


Welcome to the programme. You have been running this company for six


months, how is it going? It is fun, because it is an overlap of the


creative industries and technology, and that is a rare place to be. You


work with artists, people raising the creative bar, but at the same


time it is technology, so it is pure software development, and that is


unusual. Was it an easy transition, unusual. Was it an easy transition,


because it was a different world for you? It is a different world in


terms of what we do, but not in terms of the clients, so that is


it is not entirely removed. It has it is not entirely removed. It has


all changed, virtual reality, augmented reality, and those skills


come out of the film and TV industry. This is what I found


astonishing, every film nominated for the best visual effects Academy


Award in the last five years has made using software that you


pioneered. From that position at the top of the market, what separates


you? For Lehman, it strikes me that it is computers creating effects,


In the best compensated films, the In the best compensated films, the


best films with special effects and context graphics, something like


spend thousands of hours creating spend thousands of hours creating


the scene of space and the Milky Way might take tens of hours. You need


are prepared to pay for, that allows are prepared to pay for, that allows


you to work 16 hours a day. To give us as he was the sense that it was


all shot in space. We can look at all shot in space. We can look at


this, talk us through what we are seeing. This is a building up of the


also in scenes that you would not also in scenes that you would not


necessarily expect, it is not just about creating wonderful seascapes,


some more mundane stuff. We used to pick that the green screen was for


Superman or only for robots, but now it is used for advertisement,


everything we see, because it is quicker, easier to shoot, it gives


higher visual standard of what we higher visual standard of what we


expect all the time. In terms of expect all the time. In terms of


incredibly talented individuals incredibly talented individuals


working for companies like yours? If so, is it difficult? The real talent


is software engineers and people with a long background in visual


computing and image processing, and that is hard to find. Everybody in


London finds it hard to find the best engineers. Is it harder because


of Brexit? It will be harder to retain the best talent and attract


international talent. I would love to talk more, but we have to fit so


much in. Nice to see you. It is fascinating. We need more time


on this programme! Send in your request!


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.


You can stay ahead with all of the braking business news. We keep you


up-to-date with the latest details up-to-date with the latest details


with insight and analysis from the BBC's team of editors around the


world. We want to hear from you as well. Get involved on our web page.


We are also on Twitter, and you can find us on Facebook. On TV and


online, whenever you need to know. You have been getting in touch. We


have asked, what would you ask Theresa May to do for you? Paris


says, cut the best deal for Brexit, diminish immigration to manageable


levels, negotiate trade deals with the Commonwealth. That is three


things! Nicky says a housing theme, ensure


housing is built and make sure we build social housing. That is a key


thing at the centre of the referendum campaign. How many and I


allowed? Just one? A real established working group on matters


of intergenerational unfairness. There is a huge divide between those


who have retired, those at the beginning of their working life. We


need to see all parties get involved and, with some real ideas about what


are the key things that are disappointing people in those


different generations and how we can bring people together. They will


talk a bit about it with tensions in the papers. We have got one minute,


so let's focus on that. ?383 billion on the liabilities hit


a record. It is terrible news, this happens because of a couple of


reasons. The stock market falls, the gap between what is in the pension


fund and what is needed to pay them widens. And the retirement age has


not kept up with life expectancy. We have not raised the retirement age


quick enough and people are living for longer. It does not work out,


the numbers don't make sense. That is in the Telegraph. The sheep are


being used for Google Street view, it is incredible. In the Faroe


Islands, north of Scotland, ten Islands, north of Scotland, ten


different islands, instead of cars, they have sheep. On that note, thank


you! We will follow the sheep. See you


seem, goodbye.


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