24/08/2016

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:00:17. > :00:18.The magnitude 6.2 earthquake struck near

:00:19. > :00:22.The mayor of a nearby Italian town told local radio that

:00:23. > :00:29.Also in the programme - Counting the cost

:00:30. > :00:33.A new report has called for an international ban

:00:34. > :00:37.on microbeads that are used in thousands of cosmetics

:00:38. > :00:51.And markets are treading water worldwide. At the moment in Europe

:00:52. > :01:12.the main markets are heading lower. A rather unusual addition where we

:01:13. > :01:15.begin by keeping your cross developments in Italy. There has

:01:16. > :01:21.been an earthquake in central Italy. The quake was shallow -

:01:22. > :01:23.magnitude six point two - and was felt as far away

:01:24. > :01:26.as Rome and Venice. The mayor of one nearby town,

:01:27. > :01:28.Amatrice, told Italian TV that some buildings had collapsed and people

:01:29. > :01:31.were trapped under the rubble. A number of deaths

:01:32. > :01:33.have been reported. Catriona Renton has been

:01:34. > :01:43.following the story for us. Reports of lives lost

:01:44. > :01:49.and buildings reduced to rubble. At 3:30am the earthquake struck,

:01:50. > :01:55.reaching a magnitude of 6.2. It was felt across large

:01:56. > :01:59.swathes of the country, The worst hit areas appear to be

:02:00. > :02:14.small hilltop villages in the area. At the moment I am in a little

:02:15. > :02:17.village called Camartina. But I know that for sure,

:02:18. > :02:20.we had two people die in the location called Arquata del

:02:21. > :02:22.Tronto, that is the municipality. So we have so many houses that

:02:23. > :02:35.may be destroyed. The Mayor of the small town

:02:36. > :02:37.of Amatrice told Italian television that buildings had collapsed,

:02:38. > :02:40.saying half the town was gone. And in close by Accumoli,

:02:41. > :02:45.it's reported that a family of four This is an area vulnerable

:02:46. > :02:48.to earthquakes. In 2009, the same region was struck,

:02:49. > :02:53.more than 300 people died. As the day goes on, and more help

:02:54. > :02:57.arrives, the true extent Earlier, we spoke with

:02:58. > :03:06.Sabrina Sbermola, a resident in the district of Arquata del

:03:07. > :03:30.Tronto that's been affected We are in the South part of the

:03:31. > :03:40.region. At the moment I'm here, but I know for sure we have two people

:03:41. > :03:46.who died in this location, the municipality, so we have so many

:03:47. > :03:54.houses that may be destroyed and people are on the streets. So many

:03:55. > :04:16.people are on the street, outside, waiting. We heard the after-shock.

:04:17. > :04:30.It was the biggest. I'm a little bit scared, it was very bad. Many

:04:31. > :04:40.buildings crashed down. We are very near to the municipality. There are

:04:41. > :04:55.so many problems, those people in the street, the little villages have

:04:56. > :05:00.stopped because they come to work. Of course there's an earthquake is

:05:01. > :05:08.happening around 3:30am. The reaction to that, very shaky. If you

:05:09. > :05:23.want to find out the latest on this developing story, the situation in

:05:24. > :05:30.Italy, all this is being updated on a special live page. Head online for

:05:31. > :05:33.the latest. Four of the world's biggest banks

:05:34. > :05:35.are together developing UBS, Deutsche Bank,

:05:36. > :05:43.Santander and BNY Mellon - as well as the broker ICAP got

:05:44. > :05:46.together to pitch the idea They hope it will become the future

:05:47. > :05:51.industry standard to clear It will be using blockchain

:05:52. > :05:54.technology, the same Chinese real estate

:05:55. > :06:03.and entertainment conglomerate Dalian Wanda expects to seal two

:06:04. > :06:04.billion-dollars worth of film-related deals

:06:05. > :06:10.in the US this year, according to its

:06:11. > :06:12.chairman Wang Jianlin. China's richest man says

:06:13. > :06:14.Dalian Wanda's next target would be He says the goal is to bring

:06:15. > :06:22.their capability to China. Tesla Motors has unveiled

:06:23. > :06:24.a new battery pack for the performance versions

:06:25. > :06:27.of its Model S and X cars. The battery cell chemistry

:06:28. > :06:29.is the same a before, but the reconfigured product store

:06:30. > :06:32.more energy in the same space. The new 100-kilowatt hour battery

:06:33. > :06:34.pack means high-end versions of the Model S sedan

:06:35. > :06:40.will be the world's fastest Australia's national carrier Qantas

:06:41. > :06:54.has posted record annual profits of $1.1billion nearly doubling

:06:55. > :07:07.last year's result. The airline will also pay a final

:07:08. > :07:09.dividend to shareholders Qantas has been though major

:07:10. > :07:13.restructuring after posting record To achieve the turnaround,

:07:14. > :07:16.the carrier has cut capacity, reduced staff and benefited

:07:17. > :07:39.from a slump in oil prices. The flying Kangaroo is soaring right

:07:40. > :07:47.now. Exactly. It is making money again. There is an old saying, no

:07:48. > :08:06.pain no gain. That is being proved true.

:08:07. > :08:20.It is going to be the first dividend since the financial crisis. Not only

:08:21. > :08:23.billions of dollars, Qantas dropping unprofitable routes because they

:08:24. > :08:28.cost a lot of money. There is a tailwind from the collapse of oil

:08:29. > :08:33.prices, they have used it for contracts. The fuel costs shrank by

:08:34. > :08:42.17%. The result is below the estimates. Shares rose by 5%. Huge

:08:43. > :09:00.turnaround from five years ago. These are how things went in Asia.

:09:01. > :09:04.Shares are at 5%. Dividend again. There is a reason to buy shares on

:09:05. > :09:17.those results. Look at Europe if we can. We cannot show you that. Most

:09:18. > :09:29.of the markets in Europe are trading lower. We've got a big event on

:09:30. > :09:33.Friday. We are waiting to see if we get a rate rise. Not much going on.

:09:34. > :09:35.And Samira Hussain has the details about what's ahead

:09:36. > :09:40.HP will be reporting earnings on Wednesday.

:09:41. > :09:42.If you remember them, this is the company that houses the

:09:43. > :09:46.old Hewlett-Packard, so this is their hardware business.

:09:47. > :09:49.It seems that aggressive cost-cutting

:09:50. > :09:51.measures may help HP counter the continuing weak demand

:09:52. > :10:03.Not surprisingly, investors will want to hear from the

:10:04. > :10:06.company about their plans to combat this fall in demand, while still

:10:07. > :10:09.remaining on track to cut more than $1 billion in costs in the year

:10:10. > :10:13.The last bits of housing data coming out this week - the

:10:14. > :10:15.National Association of Realtors will release figures for the month

:10:16. > :10:23.The US commerce department will release building permit data,

:10:24. > :10:31.Joining us is Mike Amey, managing director and

:10:32. > :10:48.Let's carry on with the American team. The main theme of this week

:10:49. > :10:56.for markets all round the world is looking ahead to what might come out

:10:57. > :11:02.of this meeting in Wyoming. That's right. Very glamorous place to have

:11:03. > :11:04.your key speech. The reason everyone is interested is because the US

:11:05. > :11:09.central bank has been the only one central bank has been the only one

:11:10. > :11:20.that felt the economy getting interest rates up. That is ideally

:11:21. > :11:23.what we all want. Can they sneak another run through before the end

:11:24. > :11:30.of the year? Everybody is looking to this speech. We had some comments

:11:31. > :11:33.earlier in the week from the deputy head of the Federal reserve being

:11:34. > :11:46.very optimistic about the state of the economy. That's right. The

:11:47. > :11:52.deputy of the head was speaking earlier. There has been some concern

:11:53. > :11:59.the GDP numbers were weaker than expected. But their message is

:12:00. > :12:05.things are going OK and on the up. In the meantime we are seeing slight

:12:06. > :12:11.declines in Europe today. It is August. It is a funny time. I think

:12:12. > :12:16.part of this is a lot of equity markets have done very well. We've

:12:17. > :12:22.got the stock market at a high, the European markets have done well, and

:12:23. > :12:30.I think a lot of markets has seen that rise and taken stock and are

:12:31. > :12:37.just bumping along the levels. You mentioned the Brexit bounce. There's

:12:38. > :12:42.a story in the Guardian, UK economists defied Brexit fears. Is

:12:43. > :12:50.that overly positive? It is good news that there does not appear to

:12:51. > :12:55.have been a big knock on consumer confidence after the vote. There was

:12:56. > :13:04.a worry this would trigger a downturn. There are longer term

:13:05. > :13:19.challenges out there. Inflation is going up. The good news is so far

:13:20. > :13:20.the downturn has been very muted. Great stuff. Stick around and take

:13:21. > :13:23.us to the papers. Many thanks. Still to come: We'll be keeping

:13:24. > :13:26.across the developing story in Italy, where an earthquake has

:13:27. > :13:51.struck near the the town of Perugia. It has been a mixed fortunes for the

:13:52. > :14:05.world's biggest advertising organisation. The profits were

:14:06. > :14:08.dented, falling down in the stake of an audience measuring company.

:14:09. > :14:16.Earlier, we spoke to the chief Executive Officer. He said there is

:14:17. > :14:30.reason to be cautious about the future. We have all the issues quite

:14:31. > :14:35.apart from terrorism and Brexit. Also other countries face issues.

:14:36. > :14:40.India is the one shining star. In China we had a good first half but

:14:41. > :14:51.we see improvements in the second half. The actual growth rate is

:14:52. > :15:02.considerably less. The world is growing slowly by 3.5%. In that

:15:03. > :15:07.environment, clients are going to be cautious. Very little inflation and

:15:08. > :15:12.price power. There is a subheading in the press release which is,

:15:13. > :15:17.grinding it out. It does feel like a bit of a growing because even though

:15:18. > :15:22.the results are strong, we have to grind them out in a difficult

:15:23. > :15:27.environment. On the specifics, we saw some softness in the UK. July

:15:28. > :15:34.was stronger. How much that was because of the push of the Bank of

:15:35. > :15:38.England, we will have to see. But the next three years, I would agree,

:15:39. > :15:44.are going to be difficult. The government will be negotiating our

:15:45. > :15:52.withdrawal, business wants certainty, the government wants room

:15:53. > :15:56.to move. There is a class there that makes life difficult. Clients will

:15:57. > :16:01.continue to be cautious whether they are based in the UK, the EU, or

:16:02. > :16:03.worldwide. We are ready for that, that is the way that we manage

:16:04. > :16:12.business. Sir Martin Sorrell, who promised he

:16:13. > :16:14.will come in next time we interview him.

:16:15. > :16:22.You're watching Business Live: There's been an earthquake

:16:23. > :16:25.in central Italy, close to the city of Perugia.

:16:26. > :16:29.The quake was shallow, magnitude 6.2,

:16:30. > :16:34.and was felt as far away as Rome and Venice.

:16:35. > :16:40.The mayor of one nearby town, Amatrice, told Italian TV that some

:16:41. > :16:42.buildings had collapsed and people were trapped under the rubble.

:16:43. > :16:51.A number of deaths have been reported.

:16:52. > :17:03.On the BBC news website, you do see that the earthquake has now left at

:17:04. > :17:13.least 13 dead in central Italy. There are images of those trying to

:17:14. > :17:17.find anybody in the rubble. Many small villages have been affected.

:17:18. > :17:22.Our correspondent James Reynolds, based in Rome, has gone to the

:17:23. > :17:26.scene. We are having difficulty contacting him because it is hard in

:17:27. > :17:32.these circumstances with phone lines and telecommunications, but as soon

:17:33. > :17:39.as we hear from James, we will let you know. Emergency services are

:17:40. > :17:42.trying to find survivors as we speak. You can find this special

:17:43. > :17:45.live page on the BBC World website. Let's take a look at another

:17:46. > :17:47.business story making "A blanket ban should be placed

:17:48. > :17:51.on the use of microbeads by cosmetics companies" -

:17:52. > :17:56.that's the view of a new report into the global problem

:17:57. > :17:58.of plastic pollution. pieces of plastic that are used

:17:59. > :18:05.in thousands of commonly used exfoliating scrubs,

:18:06. > :18:07.toothpastes and shaving gel which are a type of microplastic,

:18:08. > :18:15.are accumulating in the world's oceans and rivers, harming marine

:18:16. > :18:17.life and entering the food Many of the world's largest

:18:18. > :18:23.cosmetics companies have already committed to phasing out

:18:24. > :18:26.the use of microbeads, but the report says this doesn't

:18:27. > :18:31.go far enough. The UK-Environmental

:18:32. > :18:32.Audit Committee has called Several US states have already

:18:33. > :18:38.announced that they will ban the manufacture and sale of certain

:18:39. > :18:40.types of products With me is British Labour

:18:41. > :18:47.politician, Mary Creagh. She's also the chair

:18:48. > :19:03.of the cross-party How big a problem is this? Well, up

:19:04. > :19:11.to 200,000 tonnes of microbeads are entering the EU's oceans every year.

:19:12. > :19:16.And that is a completely avoidable form of pollution. As you say, it

:19:17. > :19:20.ends up in fish, shellfish and sea birds. The committee heard that if

:19:21. > :19:24.you have eaten a bit of six oysters, you will have consumed 50 or 60

:19:25. > :19:29.microbeads, and that cannot be good for anybody. Many companies have

:19:30. > :19:32.already fulfilled their target not to use microbeads, and a large

:19:33. > :19:37.proportion of cosmetics industries have said they will phase them out

:19:38. > :19:41.by 2020. Is that voluntary action not enough? No. We found that

:19:42. > :19:45.cosmetics companies were very reluctant to come to the committee

:19:46. > :19:51.and speak to us about this. You're right, there is a voluntary ban that

:19:52. > :19:58.is coming in by 2020. But that leaves some large companies not

:19:59. > :20:06.signed up to it. Avon has said it will sign up, but has given no date

:20:07. > :20:10.for the phase-out. And of course, there are smaller companies which

:20:11. > :20:15.are not household names that are keeping their heads down and hoping

:20:16. > :20:20.it will blow over. I have read some of the report. It says in terms of

:20:21. > :20:31.damage, it is not clear how damaging this is. The UK now exiting the EU

:20:32. > :20:35.means that our influence in terms of a banner outside the UK is

:20:36. > :20:39.minimised. Well, the US has brought in a ban on microbeads, but only in

:20:40. > :20:44.scrubs and shower gels, when it is used in toothpastes as well. We want

:20:45. > :20:48.it banned in all products. The ideal would be for it to be banned across

:20:49. > :20:52.the European Union, because that is the market in which these products

:20:53. > :20:56.are made. But we think is a sovereign country, we can institute

:20:57. > :21:02.a national ban and show leadership. We do have a UK cosmetics industry.

:21:03. > :21:09.We have companies producing in this country, and we think we should take

:21:10. > :21:14.the lead on this. A lot of people have downloaded an app that has been

:21:15. > :21:17.set up by charities so that you can shop in confidence. We don't think

:21:18. > :21:21.it is right for cosmetics companies to rely on our ignorance as

:21:22. > :21:24.consumers, our inability to read the labels because they are written in

:21:25. > :21:29.such tiny writing, and our ignorance that polypropylene is a type of

:21:30. > :21:35.micro plastic that is in these products. Mary Creagh, chair of the

:21:36. > :21:41.cross-party environmental audit committee, many thanks. There is

:21:42. > :21:51.more on that online, so take a look if you want further information.

:21:52. > :21:55.In a moment, we will talk you through some of the other business

:21:56. > :22:04.stories in the papers, but here is how to stay in touch.

:22:05. > :22:08.Our website will keep you up-to-date with analysis from around the world.

:22:09. > :22:16.And we want to hear from you as well. Get involved on the Business

:22:17. > :22:23.Live web page, on Twitter and you can find us on Facebook. Business

:22:24. > :22:30.Live, on TV and online, whenever you need to know.

:22:31. > :22:40.Now, Mike is back to look through some of the other stories in the

:22:41. > :22:50.press. Big banks are planning to coin a new digital currency? If you

:22:51. > :22:56.buy a house, the transactions go through one settlement system. Each

:22:57. > :22:59.bank in the chain will agree that the money is there and then they

:23:00. > :23:03.press a button and then the next bank presses a button. With a

:23:04. > :23:07.digital currency, it is more like cash. You don't get that agreement

:23:08. > :23:11.that everyone audits and then you make the payment and then the next

:23:12. > :23:19.payment etc. The aim is to speed everything up. What is the benefit

:23:20. > :23:23.of it? Speed is the key advantage. What about security? That is the

:23:24. > :23:27.risk. If you exchange this cash and make sure that everything has worked

:23:28. > :23:31.afterwards, then of course the risk is that you have a less secure

:23:32. > :23:44.system and it makes it more vulnerable to fraud. That is why we

:23:45. > :23:47.have not got there yet. Deutsche Bank absinthe and there are pitching

:23:48. > :23:53.this to central banks. How are they getting on? -- Deutsche Bank and

:23:54. > :23:58.Santander. Central banks like to manage the cash. It is good that we

:23:59. > :24:03.are trying to use the technology, but I suspect this will be a long

:24:04. > :24:07.process. I want to flag up this other story we saw in the Telegraph

:24:08. > :24:15.today, featuring Jeremy Corbyn, leader of the Labour Party, getting

:24:16. > :24:20.into a bit of a few raw -- furore with Richard Branson? Indeed. As we

:24:21. > :24:25.all know, the train system has seen huge rises in passenger numbers, and

:24:26. > :24:32.there was of course scope for greater spending on infrastructure.

:24:33. > :24:35.Part of this is the Labour Party trying to make the play that there

:24:36. > :24:39.is massive overcrowding, with a picture of Jeremy Corbyn sitting on

:24:40. > :24:41.the floor. And Richard Branson pointed out that there might have

:24:42. > :24:50.been seats available if you really wanted one. Apparently, the CCTV

:24:51. > :24:55.reveals that he walked past them. Now, these are pictures coming from

:24:56. > :24:59.one of the worst affected areas in central Italy, Amatrice, where a

:25:00. > :25:05.magnitude 6.2 earthquake struck in the early hours of this morning. We

:25:06. > :25:10.are keeping an eye on the situation. At the moment, it is reported that

:25:11. > :25:19.at least 13 people have died and many others are trapped under the

:25:20. > :25:23.rubble. Do head online to BBC World News, where we have a special live

:25:24. > :25:26.page bringing you all the developments including testimonials

:25:27. > :25:31.from people who were there at the time, pictures and the latest facts

:25:32. > :25:40.and figures on this devastating earthquake. Stay with us here on the

:25:41. > :25:43.BBC as we keep you across all the latest. We will see you soon.