09/09/2016 BBC Business Live

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