09/09/2016 BBC Business Live


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This is Business Live from BBC News with Alice Baxter and Sally Bundock.


South Korea's shipping firm hand Jim has been in troubled waters since it


filed for receivership last week. The question everyone is asking,


what is happening to the $14 billion of goods stranded at sea?


Live from London, that's our top story on Friday 9th September.


Our BBC team stakes out 18 -- stakes out a ship belonging to Hanjin.


Can Switzerland lead the way for post-Brexit Britain?


We have a special report from our Economics Editor, who's


been to see how their relationship with the EU works.


And we will bring you up to speed with the markets, where European


shares are listening to Asia shares, Tokyo's benchmark, that earlier loss


and disappointment about what we heard from the ECB yesterday.


Later we'll be speaking to our business editor Simon Jack,


who'll be rounding up the top business stories of the week


including what lies ahead for the impressively moustachioed


We're talking about F1 today and current boss Bernie Ecclestone


says it's got boring and predictable.


A very warm welcome to dupe. The recent failure of the world's


seventh largest container carrier, Hanjin Shipping, has had huge


implications. The world depends heavily on the shaping of things we


rely on, from frozen meat to furniture and clothes.


The global logistics market for both shipping and air freight


The collapse of Hanjin has left about $14 billion worth


With Hanjin's future in doubt, carriers have announced


they will raise container freight rates by as much as 50%


The collapse of Hanjin Shipping will unboubtedly increase the cost


to businesses and consumers around the world on a variety


One of the stranded ships, Hanjin Rome, is in Singapore waters


- where the BBC's Sharanjit Leyl went to track it down.


What I know about this ship is that it was seized


Now, there's no sign of crew on board, but this vessel,


like many other Hanjin ships stranded around the


This particular ship is awaiting a court decision on its fate.


Meanwhile, there's only food and water on board to last the crew


We want to know the fate of your ship, and also of yourself


and your crew, because Hanjin Shipping has filed for bankruptcy.


Do they have enough food and water to last them a few weeks?


If there is no confirmation from Singapore city then you cannot come


on board. Now, we have waited nearly an hour


now to get on board that ship, and we've tried the various


authorities to seek permission. But what we do know is the captain's


phone number, so I'm hoping to be able to call him and follow up


a little bit more on the fate of his crew and the


fate of his ship. That was our team in Singapore


giving us a sense of the practicalities of the situation.


Mariko is in our bureau there. We have been talking about this for


over a week but we are getting a sense of what it means not just for


the company but for many companies around the world with their goods


stranded at sea. Exactly, Sally. I'm not sure if many


of the viewers had even heard of Hanjin until the company filed for


receivership last week, because it is not exactly a household name, is


it? But it is the world's seventh biggest container carrier and if you


think it is not going to affect you, it could because many of the


stranded cargoes are destined for the Christmas market in the US and


EU, and, as a result, as you can imagine, a lot of companies are


concerned, and electric giant from South Korea has said that it has


goods worth $14 million on Hanjin ships and it is considering


chartering planes to get those goods to its customers in the US.


So how is this likely to play out? We know the Government in South


Korea have been talking to try to bail-out the company, what is the


latest on the state of the company itself?


The biggest shareholder in Hanjin Shipping is Korean airlines and the


company has postponed its decision on a funding plan for the second


time today, the company's board is meeting tomorrow but as these


discussions continue, the company is still seeking funds to rescue those


cargoes, as you mentioned the South Korean Government is also involved,


saying Government backed creditors could rescue them if collateral was


provided and the company is currently considering that. It has


just been ongoing for days, weeks, possibly, but all the companies and


consumers as well are starting to get quite worried about what the


impact will be on them. Thanks very much.


Airline passengers have been warned by US authorities not


to switch on or charge their Samsung Galaxy Note 7 phones


The Federal Aviation Administration also advised against packing


the phones into any checked-in luggage.


Samsung recalled the phone last week after reports emerged of the device


Qantas and Virgin Australia have also told customers not to charge


US bank Wells Fargo has been fined $185 million


for illegally opening accounts to boost sales targets.


The cash will go to regulators while the bank will also hand


The regulator accused it of "widespread illegal practice"


around account openings, sales targets and


Online accommodation site Airbnb is introducing a new policy


to combat reports that black people are less likely to get rooms.


The move includes reducing the prominence of photos,


introducing new technology, and asking users to sign


A study last year found that people with names that suggested they were


Many customers have also complained about the issue.


We will be talking about this a bit more in the papers later on.


The former president of Switzerland has told the BBC that her country


and the UK should collaborate to get a new deal


with the EU on freedom of movement with access to the single market.


Switzerland is currently trying to negotiate with the EU


after the country rejected free movement of people


Our economics editor, Kamal Ahmed, reports from Geneva.


It's a country viewed as quiet, serene, but beneath the picturesque


exterior Switzerland has been split by protests over immigration


Concerns are so strong, in 2014 it voted against freedom


This small country, wholly surrounded by EU member states,


has suddenly discovered it could be a player in Britain's Brexit debate.


This is a beautiful town that is in the heart of an area


of Switzerland that voted most heavily against freedom of movement.


It may not look much like Britain, but the concerns here are very


Worries about immigration, worries about jobs, worries


about who exactly controls the border with the European Union.


The former president of Switzerland knows well


how hard it is trying to negotiate with the EU.


She says it is time for her country and Britain to join forces.


The European Union is very rigid on the question of freedom


of movement, and I think if the European Union


doesn't integrate diversity inside its institution it


Ladies and gentlemen, we are now arriving at the main station...


From Geneva to Zurich to talk to the man who negotiated


Switzerland's major trade deals with the EU.


Could there be movement on the freedom of movement?


I think the basic problem is what I call the binary problem.


You are either fully in or fully out, and this does not serve


the interests, I think, neither of the European Union


I'm sure Brexit is sort of a catalyst for contributing


to the debate, whether the EU has to become more flexible.


Theresa May knows she is going to need allies if she is going to get


And here in Switzerland she has a willing partner.


I've been told that Swiss diplomats have already been dispatched


to London to look at opening lines of communication.


There is a willingness to co-operate on limiting the freedom of movement


and retaining legal sovereignty and working on those


When it comes to tackling the European Union, it does


appear that two voices may well be louder than one.


Let's get a quick check on markets, and in Asia we saw shares extend


losses after North Korea conducted its fifth and most


powerful nuclear test on Friday, heightening geopolitical tensions


In Tokyo, shares closed flat despite speculation that the Bank


of Japan may expand stimulus measures.


Also want to mention oil - prices have pulled back from two-week


highs on some profit-taking after settling more than 4%


higher a day earlier, that's following a surprisingly


Here in Europe, shares have followed Asia.


And Michelle Fleury has the details about what's ahead


When people talk about inflation, food prices are often mentioned.


This Friday, the American supermarket operator Kroger reports


Its profits are expected to take a hit due to falling grocery prices.


Tough competition across the US has apparently made the trip to


Low inflation in the US is of course one of the things that has been


keeping the Federal Reserve from raising the interest rates.


Apple's stock dragged US markets lower on Thursday,


one day after the technology giant unveiled its new iPhone


Will investors take another look at the stock this Friday?


And, on the economic front, data from the US Commerce Department


is likely to show that wholesale inventories have


Joining us is Jeremy Stretch, head of currency strategy


Nice to see you. Lots of little bits out there today, what grabbed my


attention was these German export numbers, pretty nasty year-on-year


fall of nearly 10%. Also imports as well falling quite a bit, 6.5% down.


Not good, is it? It is not, it is reflective of the deceleration we


have seen over the last 12 months in the global economy, not just


uncertainty in the UK with the Brexit debate but deceleration in


other external markets, China, always a big variable in that


context. The numbers are not particularly encouraging for


Germany, which is reliant on its export engine, and not good for


Europe as a whole because without Germany the rest of the Eurozone


will have a much slower rate of growth. And this is the morning


after no action from Marion druggie? He was trying to show his efforts


are working and when the ECB announced in a show yesterday... How


do you announce in oche at?! It is an oxymoron! The growth forecasts


they backed it up with were only modestly revised down for next year


and the after to 0.6, which does not sound like a great number but the


growth trajectory is sufficiently low that it is not below trend


growth anyway, and that underlines the structural problems that the


Eurozone continues to face. Jeremy, you are going to look at the papers


with us later on, thank you very much.


Apple - we review the company's latest offerings, as the tech giant


seeks to reignite sales of its flagship product amid


You're with Business Live from BBC News.


One company boss for which Brexit held few fears was JD


The pub chain has just announced full-year results,


and has seen its pre-tax profits rise 12.5% to ?66 million.


The chairman, who was a very vocal Leave campaigner,


used his company's full-year results to attack experts who forecast


trouble "often in lurid terms" for the economy in the event


Tim Martin of JD Wetherspoon joins us now from the


What do you make of the numbers, talk us through them? I think they


are a pretty good set of numbers. We haven't shot the lights out, we're


not Microsoft or Apple, unfortunately. But other pub


company, we've done pretty well. We've had two or three years of good


like to like sales, growth around 3% with inflation zero to one. The last


few weeks have been pretty good, too. Pretty solid, coming from one


pub, 37 years ago, the 1.6 billion or so of sales. We dust want to keep


on rocking for another 37 years, I will be talking on this show when


I'm 98 with a bit of luck! You were a very prominent Brexiteer. Just


talk us through how USS the state of the UK economy -- how do you assess.


The prognosis for the economy was poor. The astonishing thing is the


contrast between forecasts not from flotsam and but from the biomass,


the OECD, the Treasury, George Osborne, the Chancellor of the


Exchequer and so on -- the IMF. They all said it was going to be


terrible, unemployment was going to go up and house prices were going to


go down, mortgage rates was going to go up. The opposite has happened.


Excuse me for interrupting, it is Sally in the studio with Alice. It


is early days let's be honest. Negotiations haven't begun. If we


don't get the right deal, it could be very bad news in the UK economy,


including your company? The point is, the emphasis from all those


people was on the early days. The second scares stories that if we


don't get a trade deal with the EU it will be terrible for the economy.


Your financial or economics editor has just said that in Switzerland,


that is not true. We have got no trade deal with the United States of


America, we do massive trade with them. And we have a trade service,


we doing credibly well. These negotiations, looking for a trade


deal, you are stuffed. We have two interrupted, I'm sorry, Tim Barter


and of JD Wetherspoon. -- we have two interrupted. -- Tim Martin.


South Korean shipping line Hanjin is struggling to raise money


to pay its creditors after filing for bankruptcy last week.


Around $14 billion of cargo is stranded on their ships around


the world, as ports refuse to work for the company because they fear


A quick look at how markets are faring....


They are all trading fairly flat, currently a negative territory


following a fairly flat session in Asia overnight. This follows the


decision by Marion Draghi to leave the ECB unchanged.


It's the end of the week, I've got the Friday feeling!


Let's look back at the business week now.


There's been lots going on, from Brexit trade talks to reshaping


Here to talk about it we are joined by our Business Editor, Simon Jack.


Really good to talk to you. Let's get your reaction first of all the


JD Wetherspoon boss Tim Martin. We were just talking to him. Our global


viewers may not have heard that interview, they will not have seen


that part of the programme. He was giving his comments about what


Brexit means for our economy, it is quite interesting to get these very


differing views. Governor of the Bank of England has been having this


problem this week, as we look back on it now. A lot of people thought


and there were warnings, as Tim Martin was saying, if we leave there


is going to be a profound and sudden shock to the system economically.


What has actually happened is the economic figures for July, you know,


everybody got a little bit, and then when the figures came through for


August, the sky didn't fall in. The sun is still shining, we're still


shopping. Exactly, we are still putting on the barbecue, life goes


on. They said, all of these dire warnings that we had from the IMF


and George Osborne, they cried wolf about the economy. In fact, the Bank


of England was accused, because it took remedial action almost


immediately, it lowered interest rates, said it would lower them


further, started printing more money. It's through a few cautions


around so we didn't have too many bumps or bruises. They were accused


of overreacting -- it through a few cautions. The Bank of England


governor came out and said actually, I'm unrepentant about this, if there


is a risk about doing to the all too much, I've rather do too much and


see what happens. It's very early days yet, we haven't left the


European Union, we will probably be in it for years. We don't though


what the truth is yet, nobody knows at this point. Exactly, negotiations


haven't started yet. Donald Tusk from the European Union was with


Theresa May yesterday, saying, we would like you to get a move on. At


the moment, everybody is saying, we don't really want to chat to you


until you start, and we're saying that we don't want to start until we


have a chat. There is an impasse. Another big story this week was


Formula 1, getting bought by this big US media company Liberty Media.


I want to read some comments from viewers, because we asked them, in


the wake of a comment from the boss of Red Bull, whether Formula 1 has


got boring. Somebody said, Formula 1 is predictable and boring, just like


Bernie Ecclestone, he needs to go. But he is not going, and he is 86.


He is 85. Anyway, he has run it for 48 years. It looks like you will


still be in charge. He echoed some of the comments. Back in February,


he said it has gone a bit boring. He wants to put the person in pole


position back in tenth place. I think they are in the couple of


problems. It has been a fantastic investment for the private equity


group. But it doesn't do very well in the US. It is finding it hard to


attract younger viewers. People do get a bit sick of it, like whoever


has got the best car tends to win the race. It is dominated, isn't it,


by the teams. They are not very good on the digital side. The idea that


the media company, run by John Malone, and Chase Carey, who is


going to be the new chairman, one-time lead tenant of Rupert


Murdoch. They know how to appeal to new audiences. Hopefully they will


be able to unlock a bit more value. Viewers say that they need to make


it better, involve the young, change the rules. Jessica says, revamp the


F1 teams, designed their own taxis, get the same engines in, which ends


up in the single team dominating all the time -- chasse is. Jessica is


obviously a keen follower. I like this one from Barry, Formula 1 is


like standing on a bridge on the M25, very boring! You know what, it


is fantastically popular all around the world, although not particularly


in the US. I think bringing in the Americans, they hope they can unlock


that and creates a more money. Thank you, Simon, have a great weekend.


M25, terrible motorway, it goes round London, if you don't know.


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.


The Business Live pages where you can stay ahead with all the Daybell


smack breaking business news. We will keep you up-to-date with all


the latest details, -- you can keep ahead with all the day's breaking


news. We want to hear from you, too. Get involved on the BBC Business


Live web page slash business. As you can see, Jeremy has rejoined


us. A lot of it is dominated by Apple in the papers. So many angles


on the launch of the new iPhone yesterday, but also other


announcements, the second Apple Watch, this kind of thing. This


article in the Financial Times talks about the fact that Apple sneaked in


a price rise in the UK. Sneaking in a price rise on the day of a big


product launch is an interesting one. It was a good day to release


bad news, I think. We didn't notice yesterday, but were catching up


today. What is this price rise? Apple are mindful of the fact that


when they sell the product in the UK, when they translate the revenues


back into the home boundary, wherever they domicile that, they


are not getting as much revenue as they would have done because of the


movement in Stirling. In a sense, you can argue that the wake of the


Brexit vote, the substantial repricing of sterling, the financial


markets, there has been instability, but sterling has stayed much weaker


than the Brexit. That is causing an impact on profitability, prices are


being raised. Normally in the wake of the big product launch, we can


expect the company to reduce prices on its older products. Indeed, you


can often see that. You can see price dislocation between the new


and the older products. But in a sense, the company have recognised


that in order to maintain revenues or maintain margins, that is really


what we are seeing here. That is what we will see in the number of


industries, and margins Gui is because of the influences of


sterling. The question is, how do the companies reflect that? -- a


margin squeeze. Will they push that through to the consumer? Airbnb is


an interesting story as well. It is being accused of not doing enough to


fight discrimination that was emerging via its site that enables


you to rent a flat or a room for a short period or a long period. It


was accused of being racist. It was found that people who had clearly a


name that meant they were perhaps of Black origin, or their picture on


the system, they were not being offered accommodation. Airbnb


accused of not doing enough about this to fight the issues. Indeed, it


is once again sad to have to report on a story such as this. There is an


ongoing issue about people trying to pull back from renting their rooms


or their properties to certain individuals. It looks as if the


company are trying to combat that, not by removing photos in


particular, that is one issue, but trying to block people looking at


alternative bookings at the same time as blocking others. Thank you,


Jeremy. There will be more business news


throughout the day on the BBC Live web page and on World Business


Report. We will see you again next week.


Good morning. And area of low pressure is heading our way from the


Atlantic. That is turning things wet and windy, particularly so in the


north-west of the UK. We will all see some rain in the next 24 hours


or so. You


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