10/08/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock


A leading think tank says the UK should remain part


of the European single market, but is this a step too far


Live from London, that's our top story on Wednesday


Leaving Europe's single market could cost the UK 4%


But can negotiators keep Britain in the trading bloc,


while balancing demands to control freedom of movement?


And a third day of disruption for Delta passengers in the US.


We look at how a technical glitch can cause transport chaos.


Traders have hit the pause button in Europe with the main market falling


slightly, we will explain why. And imagine making 10,000 cakes


for dignitaries and celebrities. We'll be meeting the founder


of a London company Facebook cracks down


on software which blocks It is jam-packed and we will have


jam in the cakes, I am sure. Do get in touch and let's know your views


on the advertisement blocking on Facebook.


A new report is suggesting the UK could achieve significantly stronger


economic growth if it found a way to stay


Although Britain has taken the decision to leave


the 28-country political union, some experts believe it may


be possible for the UK to remain part of the EU's


Research by the Institute for Fiscal Studies says that over


the medium to longer term, Britain's GDP could be


4% higher if it stayed within the single market.


The IFS believes there's a huge difference between "full membership"


It argues "membership" reduces non-tariff barriers


like customs checks, in a way that narrower


But remaining in the trading bloc is looking increasingly difficult.


Last month, British Prime Minister Theresa May pledged to deliver


'some' control on the free movement of people.


But of course, this could risk breaching one of the key pillars


But some people around the world, that is probably as clear as mud! We


will explain. David Thomas, Executive Chairman


of the Council of British Chambers Great to have you in the studio. Can


we start for the uninitiated, if they are watching, they know the UK


has chosen to leave the European Union and now there is talk of


staying in the single market, can you explain the single market and


what it means, the benefits? The single market is part of the


European Union, part of the concept of the whole thing. It is the


economic part of it. And you cannot remove economic from politics. What


it does is allow businesses anywhere the EU to freely trade with one


another without any barriers. And additional, if you like, controls


like having to get another licence. It is a movement of goods, the


movement of money and the movements of people, which I guess some would


people. Still in uncharted territory people. Still in uncharted territory


so just wondering, the UK can leave, it is leaving the European Union.


Does it need to stay in the single market? Are they write about this


for percent? I think the calculations are probably exactly


correct. There is no reason to doubt the work the IFS has done, there is


a big impact in leaving the single market. The issue is, from a


negotiating point of view for the British government, how do you


manage to maintain the maximum amount of the single market that you


possibly can? And the fundamental point is that the financial sector


in the rest of Europe just cannot manage to finance a European --


European business, it is too small. And most of Europe's business is


being financed in London anyway. So Europe, there is this talk about the


UK missing out, Europe cannot afford not to be doing with the UK,


especially London and its financial services? That is what business


people understand, the issue is whether politicians understand it


and whether the political desire to force a win from one side or the


other is going to mess up the business side. And this is why we


are very, very strong in our view that we need to bring European


business into the game, if you want. You need to look... They are natural


allies of the UK economy. And to get them to explain to their politicians


how important it is to allow them to utilise the European... Sorry, the


UK finance market to the maximum without barriers. So they need to be


lobbying? Yes. And we have the network across Europe to provide


that interface with European business and that is what we want.


Good luck with that. We appreciate your time, David Tomas.


Some Eurostar rail workers will take seven days of strike


action in August over antisocial working hours.


Train mangers will walk out on the 12th


August and there's another strike planned for the Bank Holiday


Eurostar says it has made small changes to its timetable on strike


days. The BBC understands that the UK's


largest car factory could suffer from a lack of investment


as soon next year. The Nissan site in Sunderland


will bid for production contracts BBC sources say that there


are question marks over Sunderland's ability to compete while the UK's


trading relationship We want your tweets about the


Facebook story, remember. The social networking giant Facebook


has announced changes that The company said it will alter


the way content is loaded onto its website to make adverts


considerably more About 200 million people worldwide


currently use ad-blocking Walt Disney has reported


better-than-expected quarterly results following the popularity


of films such as Finding Dory The entertainment giant reported


a 9% rise in revenue, with profits rising to $2.6bn over


the three-month period. Disney also said it had


bought a $1 billion stake in the video streaming


company BAMTech. I have never heard of that, have


you? No, only today.


# Just keep swimming... That is the song from binding dory. I took my


younger son and I think I enjoyed it more than him.


-- finding. I know about John dory! With french fries!


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


The energy giant aeon has made a loss because it wrote down the value


of a loss-making power plant. The firm said that it is having to meet


all sorts of obligations. So a ?3 billion Euro loss. Not good news


from E.On. Shall we move on? I keep losing sound! Plenty of news around


the business markets. UK oil giant BP is planning to sell


one of its biggest Chinese investments near Shanghai, in a deal


that could bring in $2-$3 billion. Sharanjit Leyl is in


Singapore for us. Tell us more about the latest


announcements from BP. Yes, they are trying to sell off this Chinese


petrochemicals joint venture, their largest invention -- venture in


China. It was a joint-venture between BP and estate owned


business. BP is trying to cut off its 50% stake and they hope to fetch


as much as 2 billion, $3 billion. This is not the only company looking


to cut its investments in China. A lot of places relink and a lot of


people saying China's slow liberalisation of its energy sector


has disappointed investors. If BP sell it, they will not have made


that much after investing ten years ago. It was built at a cost of ?2.7


billion and a successful deal marks the company's first successful exit


from a business in China. They have sold off $50 billion worth of assets


into the Gulf of Mexico spill, paying clean-up costs and legal


bills. Thank you so much from Singapore. Some BP taking action to


boost its bottom line. And the energy companies have been losing


ground on markets around the world, the oil price has fallen yet again.


Not the best of days in Asia. But we have had a four Day rally in Asia.


Japan hit an almost one-year high yesterday. So profit-taking going


on. Let's look at Europe, a similar story. Let's not forget Germany


yesterday closing at 2.5% higher. Down a touch today, nothing very


dramatic. The losers are the energy companies with energy going down and


a much weaker dollar which doesn't help companies around the world. We


will talk more about that in a moment.


And the details about what's ahead on Wall Street today.


Wednesday will be about Wendy's, the fast-food burger chain which will


report its earnings. The results come at a time of a slowdown in the


fast-food industry. So investors will be eager to know how much of an


impact the slowdown will have on its forecast, especially given rivals


like McDonald's have given cuts to their outlooks for future quarters.


We will hear from the luxury hand back maker Michael chorus. The


company said it would offer more discounts to clear infantry at


department stores and make changes to distribution and regain market


share. But luxury retailers have been under pressure. Britain's vote


to leave the EU and China's economic slowdown have rattled economic --


International shoppers and increased online competition and a petition


from counterfeiters is hitting luxury retail industry.


Lauren, it is great to see you. It is August, quiet on the markets. But


interesting, a number of things going on. The dollar has stepped


because investors are thinking America's Central Bank is not going


to be optimistic about rate rises. They said two rate rises this year.


But the Asian markets are doing pretty good. Yes, we have got a


pause in the US and Europe, partly around holiday season and partly


because when there are not many people around, the economic data


does not get pulled over as much as it does and Asia is following on the


momentum from the US and Europe over the last weeks. It is an interesting


time, the classic Summer market situation.


Also, there is this thought in the market it will be quite a while


before we see rates going up in the US and we have a much weaker dollar


affecting markets like Japan. Yes, and there is often the theory the


Federal Reserve in the States does not like to raise rates close to a


US election. So November is the election. So we are ten, 12 weeks


away from that. And the data is fine. They are cracking numbers,


jobs numbers last Friday. And there is still concern about the fallout


of white macro to the US, they do not talk about it as much as they


did previously but it is still on their minds as it is in the UK --


Brexit. We will discuss the papers later on, you will take us through


those. We'll be meeting a woman who's


made cakes for thousands of dignitaries and celebrities -


including Madonna, David Beckham You're with Business


Live from BBC News. In the last hour, the RMT union has


announced that its members working on the Eurostar will take seven days


of strike action this month. The union says it's


over work-life balance. I was just wondering if the floor


manager was going to make a sleek appearance?


It's the third dispute to break out on the railways,


with RMT members on Southern Railway on strike this week over


The union has also announced a vote for action on Virgin Trains


Simon Calder is Travel Editor of the Independent.


Always good to see you. Lots of travel disruption this summer?


Indeed. I have been speaking to the general secretary of the RMT union,


which has called the strike on Eurostar, he says that we are


frankly fed up and the fact that Southern Rail is on strike, in the


middle of that, the East coast Virgin Trains staff have voted to


strike and we now have a strike coming up on Friday, Saturday,


Sunday, Monday and the last weekend of August, that is because the


employers are simply not being fair. Let us look at the dispute, it was


back to an agreement in 2008 over what the worklife balance should be


and train staff on Eurostar which runs trains from London St Pancras


to Paris and Brussels as well as Marseille and Disneyland, they have


to work anti-social shifts, often staying abroad, which might sound


like the greatest fun but it probably gets weary after a few


years and they say that Eurostar are not respecting that. I have been


trying to find out what Eurostar will propose for passengers and I


have been unable to speak to anyone but what we think will happen is


Eurostar will put a policy in place in the next hour or so saying if you


are booked for travel you can postponed and perhaps get a refund


and they will also say they hope to run the majority of trains. They


have Belgian and French staff as well as British ones who are


striking. Thank you so much for joining us. That is a very latest on


that story. If you're planning to travel through Eurostar,


please do check! The order of pepper pig is rejecting the ITV offer, more


news on that on the website. -- Peppa Pig.


You're watching Business Live - our top story...


Using the single -- leaving the single market could cost us 4% of


the GDP. But can negotiators keep us in the trading bloc whilst balancing


the bands to control freedom of movement. Let us look at the


markets. Traders heading the pause button on the recent rally, slight


declines and nothing to be too concerned about. Heading towards the


middle of August so many people are away. They are in the Riviera! That


would be nice! 17 years ago the Little Venice Cake


Company was founded here in London. Now it's gone global with franchises


in the US and the Middle East. The woman behind the business


is Mich Turner, and she's created more than 10,000 cakes


for dignitaries and celebrities like Queen Elizabeth II,


Madonna and David Beckham. Pierce Brosnan called her


the Michelangelo of cakes. She originally trained as a food


scientist and has been a consultant And as if that wasn't enough,


she's also an author She has all sorts of other products,


including... What don't you do? The idea is about giving people the


opportunity to have their cake and eat it! Mich is here! Thank you for


these wonderful cakes. How did we become this global company? Do you


just love making cakes at home? When I was very young but I qualified as


a food scientist and I worked for Harvey Nichols in the bakery and


patisserie whilst fuelling my love for cakes but it is very much from a


scientific point of view. I understand what is happening and use


that technology and biochemistry to produce amazing cakes and


breathtaking beauty. How do you leap from that idea to making cakes for


the Queen? That does not happen overnight and it comes the huge


amount of dedication and knowing where you want to be and taking


steps to reach that. There has to be connection. It is about making sure


you have a fantastic product and we always strive to have that complete,


bespoke detail, hand craftsmanship with indulgent cakes so everything


stands shoulder to shoulder in terms of the experience, whether you are


learning, teaching, writing books, decorating, everything has to stand


up to the quality but it is by word of mouth and London is a fantastic


centre to fuel that because we have so much in the way of banqueting and


hotels, which fuelled my career. Expansion. The US, Middle East. I


wonder, do people in the Middle East, these are real? Yes! Do they


like the same stuff? The franchise is in Kuwait servicing the Middle


East and what they particularly like his to really sweet cakes, but added


salted caramel and the more pottery and speed the better but they like


them very small. Not let the Americans, it tends to be the


bigger, the better. In Kuwait, it is dainty and delicate. What is it like


doing business as a woman? That is how I felt. The market in Kuwait is


very much about buying and selling and trading franchises so you will


see British, American and French franchises in Kuwait, the ladies are


liberal, they were beautiful clothes and drive and shop and they love to


have sweet treats. When they have Mother's Day, they will buy for each


other's mothers and sisters and cousins and the girls shop together


and the wedding is over there are phenomenal. Our first wedding cake


in Kuwait was over eight feet tall and weighed over 200 kilos. How do


you manage the quality with people making cakes for you? A bad one can


ruin the reputation? The training we have in Kuwait, we have a kitchen


that is part of the franchising network, we have eight full-time


staff members and we train them twice a year and we conduct lots of


consultations through Skype. And a lot of videos coming to and from


them. What are you looking for in the cake maker? And attention to


detail, that flawless attention to detail. Quality, refinement,


understanding technology and putting together a really fundamentally


great cake, beautifully decorated. Can I ask the price? What will that


set you back? In this country about ?1500. In Kuwait, it can go up to


around ?60,000. The most expensive one I made was ?24,000. My goodness!


For the president of Nigeria! How do you price a cake? Says is the big


thing and the amount of intricacy and work that goes into it and the


attention. I have a lot of books. You are very global! These are all


from different languages. Different countries. You are all over the


world! Great to have you on the programme, Mich. You've had a lot of


sugar this morning! Know I haven't! I will read, he is eating.


Here's how to keep in touch. There will be up moments, you did the


conviction of knowing what you are doing. My second piece of advice is


to ask for help because it is extraordinary how generous people


are and how much they seek to the beginning. And don't be shy. Try to


get as much help as you can, meeting people. And the third piece of


advice is on focus. Really committing to what you are trying to


do and retaining as much focus as possible. Because as with most


industries and professions and ideas and thinks, focus is everything.


That clearly was not how to keep in touch! That was Lily Cole, who was


sharing... It was better! Top tips on running a business. Take us


through some of the new stories in the papers. That suspension


Facebook. Do you use it? No. -- letters mention Facebook. Facebook


has been the great driver of ads popping up on social media, great


technology stopped that popping up and across other platforms, and now,


of course, the ad-blocker has come up with a blocker for the


ad-blocker. Facebook cannot afford to lose that revenue. If you pay for


that software and enjoy life without adverts, you will be annoyed? You


will be hacked off by your experience on Facebook. Absolutely.


But it comes down, at the end of the day, we often talk about this,


nothing is ever for free? You have to pay for this somehow. If you want


Facebook for free, they have to make some money. And the more important


point is, with newspaper websites, good journalism has to be paid for.


And a lot of that is through advertising. We have one minute, let


us talk about the story involving Delta, the computer glitch shutting


down 809 aeroplanes, and that has happened, Southwest Airlines had a


similar problem three weeks before. And United Airlines. What is ironic


is the latest one was designed to stop a power brick affecting the


system. So the power brick did not stop the power brick. You follow the


airline industry closely, you will be aware of this, suddenly people


rely on things like tablets for directions, for maps, it shows you


just how vulnerable the whole thing is. Always a pleasure. There are


some cake! For many of us find a on the way.


But there is some rain on the forecast is of places like Belfast


and West of Scotland and some of his worst areas, it will cloud over and


at the very least there are some spots of rain on the way. Let's look


at the South, Wednesday afternoon and across the South West and Wales,


cloudy with rain before Southern counties, the South and East Anglia


it will stay dry through the course of the afternoon. Not bad from


Norwich to hold but these westerly areas run the Irish Sea and Northern


Ireland and western Scotland, overcast. And temperatures only


around 14 or 15 degrees. The rain will turn heavy over the next few


days across western parts of Scotland. This coming night,


rainfall mostly across northern and eastern areas, the South staying dry


from London, Portsmouth, into Plymouth and wherever you are


tonight it will be mild compared to the last couple of nights. Thursday,


high pressure in charge for the south-west but weather fronts in the


North so it will be raining from Scotland to parts of northern


England, possibly into East Anglia as well with thicker cloud before


the Sutherland south-western areas, we anticipate plenty of bright


weather and even sunshine. Temperatures getting up to 22 in


London, further north it is still relatively fresh at around 15 or 16.


We mention the rainfall across northern and western Scotland, there


could be a lot of rainfall across these upland areas, 16, -- 62 around


100 millimetres and that is persistent, it keeps coming in.


Whereas to this South it is different. You can see the Midlands


and East Anglia, if anything, turning even sunnier and warming up


with this air coming up. And things are set to warm up further as we go


through Saturday and into Sunday. You can initially be a fair amount


of cloud around and spots of rain but we will be heading the mid-20s,


particularly across southern areas and Sunday look similar. Sunshine in


the forecast for the weekend but rain also, particularly for northern


areas but for much of the country it is going to stay dry.


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