:00:00. > :00:07.airlines between 1.5 billion and 6.2 billion in 2025 each and every year.
:00:08. > :00:10.This deal is voluntary. It is very important to remember. It does
:00:11. > :00:13.become compulsory not until 2027, with some countries with the airline
:00:14. > :00:18.sectors. Let's stay with this. Femke de Jong, the EU policy
:00:19. > :00:30.Director at Carbon Market Watch, Great to have you with us. This has
:00:31. > :00:35.been a long time coming, right? So many will say. When you look at the
:00:36. > :00:41.grand scheme of it all, the bigger picture, 2%, that is what airlines
:00:42. > :00:46.contribute, 2% the man-made CO2 emissions, that doesn't sound like a
:00:47. > :00:51.lot, does it? Well, it depends on how you look at it. At this moment,
:00:52. > :00:59.the aviation sector is one of the top ten global carbon polluters,
:01:00. > :01:03.emitting more CO2 per year than the 129 lowest emitting countries. Its
:01:04. > :01:06.emissions are set to quadruple in the coming decades, so it is a
:01:07. > :01:16.problem that needs to be tackled, and we need... OK, great, but this
:01:17. > :01:21.deal, is it the right deal, it is interesting. At the moment it is
:01:22. > :01:25.only voluntary up until 2027, then it becomes mandatory. But correct me
:01:26. > :01:29.if I'm wrong, it says it becomes mandatory for the countries with the
:01:30. > :01:35.big airline sectors. What does that mean, a country with a big airline
:01:36. > :01:45.sector? Well, it means that from the year 2021, up to over 60 countries
:01:46. > :01:50.have committed to take part in this deal to curb aviation's climate
:01:51. > :01:56.impact. This includes countries like the UK, the United States, but also
:01:57. > :02:02.China, for example. What it does not do is represent a global scheme. So
:02:03. > :02:07.it started off carbon neutral for 2020, it will not be reached because
:02:08. > :02:11.it only covers 80% of aviation's emissions growth. What about
:02:12. > :02:16.shipping? The shipping industry. Is there a similar deal in place? I
:02:17. > :02:22.mean, talks about the shipping industry, all of those cargo ships
:02:23. > :02:26.and carriers an uproarious, apparently, for emissions and
:02:27. > :02:31.polluting -- note aureus. It is true that the emissions industry is one
:02:32. > :02:37.of the sectors which have not been faced with binding carbon cuts, and
:02:38. > :02:40.the same applies indeed to aviation. So far, aviation's emissions have
:02:41. > :02:47.not been tackled by any global deal. The aviation sector operates in a
:02:48. > :02:51.world where they do not pay fuel taxes, it is good that we start
:02:52. > :02:55.addressing this problem and the deal yesterday is just the first step in
:02:56. > :03:00.effect in order for us to limit global warming to levels that are
:03:01. > :03:04.safe much more needs to be done. Thank you very much, we appreciate
:03:05. > :03:09.your time, thank you for joining us from Brussels. Good to see that the
:03:10. > :03:12.airline industry has got together and done something, maybe the
:03:13. > :03:16.shipping industry needs to do the same, that's all I'm saying.
:03:17. > :03:18.Voluntary until 2027, that's all I'm saying.
:03:19. > :03:20.Shortly after currency markets opened in Asia on Friday,
:03:21. > :03:23.the pound lost as much as 6.1% in two minutes.
:03:24. > :03:25.It was the currency's lowest level since May 1985,
:03:26. > :03:27.and the biggest intraday drop against the dollar since its plunge
:03:28. > :03:30.in the wake of the UK's vote to leave the EU.
:03:31. > :03:45.They are talking about a flash crash. What happened over there
:03:46. > :03:51.during this trading session? Was it big fat thumbs? I'm not sure. That
:03:52. > :03:56.was the initial guess among the traders here, and that is back
:03:57. > :03:59.around 7am local time, just after midnight local time, the Stirling
:04:00. > :04:03.started the plunge, they wondered if it was just a human error, also
:04:04. > :04:07.known as a fat finger, because there was no obvious reason it could have
:04:08. > :04:12.triggered a sell-off. But then it seemed like the plunge started
:04:13. > :04:15.shortly after the Financial Times published an online article about
:04:16. > :04:19.the French president talking about tough negotiations ahead of Brexit.
:04:20. > :04:24.What happened was, a lot of banks have their computers set up to react
:04:25. > :04:30.to certain keywords, and it seems like this FT article has triggered a
:04:31. > :04:35.sell-off. It came as a huge surprise to many traders here in Asia. Thank
:04:36. > :04:44.you, we appreciate the update, we will talk to you soon. We are asking
:04:45. > :04:49.her if she can talk to the traders and get the pound up, I want it at a
:04:50. > :04:50.record high! We will have more on that story a little later on with
:04:51. > :04:52.our guest. Samsung Electronics says its third
:04:53. > :04:54.quarter profits will be better than expected,
:04:55. > :05:01.despite the damaging recall of its flagship Note 7 smartphones
:05:02. > :05:03.over exploding batteries. Samsung says it probably made
:05:04. > :05:06.profits of $7 billion in the three It releases full results
:05:07. > :05:09.at the end of the month. Twitter shares have continued
:05:10. > :05:13.to plunge after a report cast doubt The tech website Recode reported
:05:14. > :05:22.that Google and Disney would not bid for the social network -
:05:23. > :05:25.and that Apple was unlikely Cloud software maker Sales Force has
:05:26. > :05:35.also been named, but has yet And the photo-sharing app Snapchat's
:05:36. > :05:42.parent company is working on an initial public offering that
:05:43. > :05:46.could value the company The Wall Street Journal is reporting
:05:47. > :06:04.that Snap Inc is looking to sell What a success story. It's for the
:06:05. > :06:07.young ones, actually! Let's be frank, let's be frank Viktoria
:06:08. > :06:15.Komova on. At least I have an account! You've got to learn how to
:06:16. > :06:21.use it now. Check out the Business Live page, a great site updated all
:06:22. > :06:24.the time. Another reminder of Deutsche Bank, we have been talking
:06:25. > :06:29.about but the past couple of weeks, a lot of worries, the IMF and global
:06:30. > :06:33.organisations are saying it is the most dangerous bank in the world,
:06:34. > :06:39.but we are saying there is no Lehmann Brothers moment. The
:06:40. > :06:44.officials are trying to reduce that $14 billion fine, talking about
:06:45. > :06:51.going down to about 5 million. -- 5 billion. But Jean-Claude Junker says
:06:52. > :06:55.that Germany is not going to let this bank fail, it is too big to
:06:56. > :07:03.fail and Beowulf Dublin. It's worth saying that the share price has
:07:04. > :07:09.recovered yet again. We saw some big falls last week, it is recovered,
:07:10. > :07:16.there is confident it is being shored up, although there are
:07:17. > :07:24.rumours swirling. Let checking with the stock markets. The pound briefly
:07:25. > :07:28.and mysteriously plummeted to fresh lows in early trading. Amid this,
:07:29. > :07:34.persistent concerns about Britain's exit from the EU. The McKay in Japan
:07:35. > :07:37.is down about 39 points at the end of the session, it followed a
:07:38. > :07:42.turbulence session on Wall Street as well. European trade has been open
:07:43. > :07:45.about 40 minutes, and of course everyone is keeping an eye on the
:07:46. > :07:50.pound and seeing what is going on, the pound versus the dollar. We have
:07:51. > :07:54.got some tweets, too. I will cover them during the rest of the
:07:55. > :08:00.programme, keep tweeting. Let's talk to the bloke with the red races. --
:08:01. > :08:01.red braces. Joining us is Justin
:08:02. > :08:03.Urquhart-Stewart, co-founder and director of Seven Investment
:08:04. > :08:10.Management. We normally talk about markets, can
:08:11. > :08:15.we talk about a flash crash, this being in Asian trade with the pound
:08:16. > :08:20.dropping. Let's explain to those who don't typically follow it, how does
:08:21. > :08:23.this work? You have got various levels of foreign exchange trading,
:08:24. > :08:27.a lot of it is done manually with individuals carrying out raids, but
:08:28. > :08:31.the majority of these is carried out automatically, so they will have
:08:32. > :08:33.programme trades operating foreign exchange, they will have
:08:34. > :08:37.institutions doing their trading, there is a lot of background noise
:08:38. > :08:41.going on. And as you were hearing just now, some of those trades will
:08:42. > :08:46.react automatically, sometimes the words being said, the numbers being
:08:47. > :08:52.breached, and an automatic trigger. In this case, it might be a French
:08:53. > :08:57.swearword coming out and somebody reacts to what the French are saying
:08:58. > :09:01.about the British and that reacts on the pound, that can happen, but
:09:02. > :09:06.these should have brakes on them as well, they can only go so far. It
:09:07. > :09:10.shouldn't have eight trigger effect like dominoes. Where we actually do
:09:11. > :09:14.find out what happened here, it will be interesting, wasn't a human
:09:15. > :09:17.reaction, a fat finger, somebody got the trade romcom or was it an
:09:18. > :09:26.automated trade that carried on other automated trades with it. It
:09:27. > :09:30.is worth saying that any automated system is being initially inputted
:09:31. > :09:34.by people, and so what are the trigger points, for example, that
:09:35. > :09:38.could trigger an automatic system to keep falling down? Are they looking
:09:39. > :09:42.for words in the media, for example? Could it be our full but we are
:09:43. > :09:47.talking about Brexit? We could actually be talking it down, is that
:09:48. > :09:50.possible? What you do is you build an algorithm and that will be built
:09:51. > :09:56.to react to certain things, normally it will be numbers coming through.
:09:57. > :10:02.But it particular figures, if it goes below a certain level, but now
:10:03. > :10:06.developments are going on, it react to news and particular words. The
:10:07. > :10:10.markets are changing so rapidly now. It is not just mathematical, you
:10:11. > :10:14.have designed it so it is reacting not quite do emotions but there are
:10:15. > :10:19.keywords coming up it will have an impact. Smart machines, interesting.
:10:20. > :10:29.So if I read that the UK economy would grow 10% next year, would that
:10:30. > :10:31.help the pound go up? No. Still to come...
:10:32. > :10:34.Our economics correspondent Andrew Walker will be here to talk
:10:35. > :10:38.Could this be the data that cements the timing of the next rate
:10:39. > :10:42.You're with Business Live from BBC News.
:10:43. > :10:47.The reason we ask is because confidence among UK
:10:48. > :10:50.businesses has returned to pretty much the level it was at before
:10:51. > :10:51.the decision to leave the European Union.
:10:52. > :10:58.Why did you say it like that? To keep them interested here in the UK!
:10:59. > :11:01.And it's having a big impact on the number of staff that firms
:11:02. > :11:05.But what about how much they're prepared to pay them?
:11:06. > :11:16.Our business correspondent Theo Leggett has the answers.
:11:17. > :11:20.The recruitment and employment in the Reg on have put out a report
:11:21. > :11:23.saying that in September the number of permanent and temporary staff
:11:24. > :11:28.taken on by companies have increased for the second successive month.
:11:29. > :11:31.Back in June and July there was a dip around the time of the
:11:32. > :11:35.referendum, now it is picking up again. Demand for Stav continues to
:11:36. > :11:40.rise, biggest in the engineering sector. For permanent and temporary
:11:41. > :11:44.staff it was in the hotel and catering sector and the
:11:45. > :11:47.Confederation says it shows that businesses are getting over the
:11:48. > :11:53.initial shock of the referendum result, shrugging it off. But there
:11:54. > :11:56.are some important caveats. For a start, permanent hiring has not
:11:57. > :12:00.increased in London and the Confederation says it is probably
:12:01. > :12:04.because of concerns over what the EU result will mean for the financial
:12:05. > :12:08.sector in particular, whether Pat Sporting rights are kept and whether
:12:09. > :12:11.any business will move abroad. It says the number of people available
:12:12. > :12:13.to fill roles is going down, which is a point of concern.
:12:14. > :12:28.Britain looks like it is looking at a hard exit
:12:29. > :12:30.from the EU, Theresa May not looking bad she will accept the free
:12:31. > :12:32.movement of Labour. Could the immigration crackdown, if
:12:33. > :12:34.we see one, lead to staff shortages? The recruitment and employment
:12:35. > :12:37.Confederation seems to think it is a concern, they say, we urge the
:12:38. > :12:42.Government to be mindful of talent shortages faced by many UK employee
:12:43. > :12:46.is. Despite some of the rhetoric at the Conservative Party conference,
:12:47. > :12:49.we will continue to need workers from overseas in a range of sectors
:12:50. > :12:54.from engineering to health care. It says they need a rational debate
:12:55. > :13:01.between business and Government about a sensible immigration policy.
:13:02. > :13:07.Thank you very much. Can we quickly get on the screen the Business Live
:13:08. > :13:12.page? Look at that, incredible, from the Bloomberg terminal, it shows the
:13:13. > :13:13.drop, the fall off the cliff of the value of the pound during that Asian
:13:14. > :13:17.trading session. The world's first aviation
:13:18. > :13:34.pollution agreement has been approved
:13:35. > :13:35.by the UN agency, ICAO. The deal is expected to limit
:13:36. > :13:38.the growth of emissions A quick look at how
:13:39. > :13:45.markets are faring. The European trading session has
:13:46. > :13:51.opened and unsurprisingly the FTSE 100 rising yet again. Remember about
:13:52. > :13:55.75% of the companies listed on the FTSE 100 are pretty international in
:13:56. > :13:58.focus which means any fall in the value of sterling improves their
:13:59. > :14:04.profit margins for anything coming in from America or Europe, anything
:14:05. > :14:07.that they make abroad. That is why we often see this inverse
:14:08. > :14:11.relationship between the value of the FTSE 100 going up and the value
:14:12. > :14:16.of sterling going down, particularly against the dollar.
:14:17. > :14:18.It's been a terrible week for sterling -
:14:19. > :14:25.Globalisation has been on the agenda too this week,
:14:26. > :14:28.with discussions about how increasing amounts of international
:14:29. > :14:32.economic integration have affected incomes around the world.
:14:33. > :14:34.Plus there's much to talk about on US jobs,
:14:35. > :14:39.Let's get the Inside Track on all this with our economics
:14:40. > :14:50.Good to see you. Happy Friday!
:14:51. > :14:55.Let's start with the US jobs. Again, leaning towards whether we will get
:14:56. > :14:59.an interest rate rise, will display into that?
:15:00. > :15:04.Absolutely, we are expecting a figure of around 170,000 additional
:15:05. > :15:08.jobs created in the last month in the United States economy. It has a
:15:09. > :15:12.growing Labour force so you need to have a certain number of new jobs
:15:13. > :15:20.created just to keep up with that but 170,000 would be better than
:15:21. > :15:25.that keeping up level. So, yes, it would tend to play into the
:15:26. > :15:29.possibility of bringing a rate rise, perhaps in December, which is what
:15:30. > :15:33.most people in the financial world seemed to be expecting. Worth
:15:34. > :15:36.remembering the other element is inflation, we have really low
:15:37. > :15:41.inflation in the UK but the US is still below the fed's target but
:15:42. > :15:46.still significantly higher at if you take out a volatile food and energy
:15:47. > :15:52.prices it is getting towards the 2% target, 1.7% of the most recent
:15:53. > :15:55.figure. The Fed has eye on inflationary pressures than the Bank
:15:56. > :15:59.of England or the ECB. Not bad given what we are seeing in
:16:00. > :16:04.Europe and here, and inflation rate closer to 2%, the ideal mark.
:16:05. > :16:10.In the bulk of the developed world, inflation is seen as too low. In the
:16:11. > :16:14.UK, the Eurozone and Japan. So, yes, I imagine we are going to move on to
:16:15. > :16:23.talk about sterling doctor-macro I see what you are doing there!
:16:24. > :16:27.Aren't you supposed to do that bit?! We will share some of these tweets,
:16:28. > :16:34.what is the impact? It highlights the pros and cons of the week are
:16:35. > :16:37.valued currency. Emil Sorheim, with an upcoming trip to the UK to
:16:38. > :16:41.celebrate my birthday at the Royal Opera House, the weak pound is a
:16:42. > :16:47.wonderful birthday gift! In terms of the link with inflation,
:16:48. > :16:54.likely to see a boost in inflation if sterling remains weak.
:16:55. > :16:57.First of all, happy birthday a meal! Normally a depreciation in the
:16:58. > :17:00.currency is something you welcome on some grounds but worry about the
:17:01. > :17:05.inflationary impact but these are not normal times as we have said so
:17:06. > :17:09.many times. For the Bank of England, yes, there is that welcome aspect
:17:10. > :17:13.which means it will push inflation up somewhere. There is a possibility
:17:14. > :17:17.that if it is a very large ball and it has been substantial already, it
:17:18. > :17:22.might push it up too far, through the Bank of England's target, and
:17:23. > :17:26.the forecast from the International monetary fund this week suggested it
:17:27. > :17:31.could get as high as 2.5%, which would be above the Bank of England's
:17:32. > :17:43.target but not so much to be a huge problem in itself. The issues would
:17:44. > :17:45.be if it went much further and obviously the question of whether
:17:46. > :17:47.pay will keep up with any surge in inflation and whether it will affect
:17:48. > :17:49.people's real incomes after inflation at first it.
:17:50. > :17:53.Another treat here from Joe Richards who is talking about the impact in
:17:54. > :17:58.terms of what they have to buy in stock, the goods that they need to
:17:59. > :18:02.use and where they come from, and it has a big effect there.
:18:03. > :18:06.For businesses that are importing a lot of components, raw materials,
:18:07. > :18:11.surprise, yes, there is a direct affect on them. It will either be
:18:12. > :18:15.reflected in what they charge their consumers, they may pass it on, or
:18:16. > :18:19.maybe absorb it in lower profit margins, it is a decision they will
:18:20. > :18:24.have to take. Some businesses I think will look at the situation of
:18:25. > :18:28.demand for their goods and services and think, maybe we had better take
:18:29. > :18:30.the hit in the margins and hope we will be able to recover the profit
:18:31. > :18:38.later on. Bobby was around the world, -- for
:18:39. > :18:42.viewers around the world, the UK imports more than it exports?
:18:43. > :18:48.We have quite a large deficit in international trade, and one of the
:18:49. > :18:51.hopes is the depreciation of sterling will make imports less
:18:52. > :18:54.competitive, exports more competitive, and might reduce the
:18:55. > :18:58.deficit over time. We will have to start making more
:18:59. > :19:01.stuff! Manufacturers in particular are
:19:02. > :19:05.sensitive to changes in the exchange rate so it may be helpful for them.
:19:06. > :19:07.Andrew, always a pleasure, have a great weekend.
:19:08. > :19:10.In a moment we'll take a look through the Business Pages but first
:19:11. > :19:13.here's a quick reminder of how to get in touch with us.
:19:14. > :19:15.The Business Live page is where you can stay
:19:16. > :19:17.ahead with all the day's breaking business news.
:19:18. > :19:19.We'll keep you up-to-date with all the latest details,
:19:20. > :19:22.with insight and anaylsis from the BBC's team of editors
:19:23. > :19:29.Get involved on the BBC Business Live webpage,
:19:30. > :19:34.On Twitter we're @BBCBusiness, and you can find us on Facebook
:19:35. > :19:51.Business Live on TV and online - whenever you need to know.
:19:52. > :19:54.Justin Urquhart-Stewart is joining us again.
:19:55. > :20:00.You liked this story, do you drink a lot of bottled water?
:20:01. > :20:04.I don't, because I think it is wasteful and we have good sanitation
:20:05. > :20:07.here, but not many people agree with me!
:20:08. > :20:10.But London water is supposed to pass through the body of about nine
:20:11. > :20:17.people! So long as they keep testing...
:20:18. > :20:26.Tell us about the story? An article in the Guardian which takes the
:20:27. > :20:31.industry, worth $157 billion, they reckon by 2020 it will grow to 280
:20:32. > :20:40.billion, bottled water. All the different types, the different
:20:41. > :20:47.names, there is one called Ugly, but some of the descriptions they come
:20:48. > :20:56.up with, Coca-Cola's Smart Water, it just comes from Northumberland! Do
:20:57. > :21:00.you remember Peckham Spring in Only Fools And Horses? It was a spoof on
:21:01. > :21:08.bottled water, they made it up as coming from Peckham. But the idea of
:21:09. > :21:19.this Smart Water, it is vapour distilled and Coca Cola says it is
:21:20. > :21:23.inspired by clouds! You can get water from Fiji, or
:21:24. > :21:30.Peckham Spring is! This started with our fixation in
:21:31. > :21:37.the continent with Perrier, everyone wanted it but at least it had
:21:38. > :21:41.bubbles, the still waters are all virtually the same but you pay a
:21:42. > :21:46.premium price. Because it is Friday, can we skip
:21:47. > :21:52.the president Obama thing and go with Indigo airlines, a Budget
:21:53. > :21:59.carrier based in India, and it is the first time we have heard about
:22:00. > :22:02.an airline doing this, childfree zones? You have kids, did you fly
:22:03. > :22:07.with them? No!
:22:08. > :22:11.Like the Royal family, you don't fly together!
:22:12. > :22:15.It is a lovely idea, why hasn't anyone done it before? Does it mean
:22:16. > :22:18.on the plane you are separated from the child, or you have to leave the
:22:19. > :22:25.child behind?! You leave the child on the plane but
:22:26. > :22:29.it is only a few rows behind! Those trolleys with the food in, you
:22:30. > :22:33.could get several children on those trolleys, they would be wheeled back
:22:34. > :22:39.down as you leave the plane! Your child, Sir?
:22:40. > :22:45.Airlines, are you listening to this?!
:22:46. > :22:47.As long as you get the right one on the way out!
:22:48. > :23:03.Hello, cloud amounts may vary from one day to the next but the general
:23:04. > :23:07.weather pattern really isn't going to change much in the next few days.
:23:08. > :23:12.Most of the thick rain bearing cloud comes from the Atlantic but it just
:23:13. > :23:16.stops to the west of us, it is getting blocked by a huge area of
:23:17. > :23:20.high pressure centred over Scandinavia which is influencing our
:23:21. > :23:24.weather. We are drawing in an easterly breeze, perhaps not as
:23:25. > :23:34.strong as it has been, a lot of cloud on that breeze, maybe more
:23:35. > :23:36.sunshine as we head into the afternoon but equally one or two
:23:37. > :23:39.showers as well. After a frosty start with patchy fog, the best of
:23:40. > :23:41.the sunshine across northern Scotland. It will be rather cloudy
:23:42. > :23:44.for Northern Ireland, as it will be for southern Scotland, but for most
:23:45. > :23:49.of England and Wales and little sunshine at times, the best of that
:23:50. > :23:53.perhaps across north-west England and north-west Wales. One or two
:23:54. > :24:01.showers dotted about, especially in eastern England. The easterly breeze
:24:02. > :24:05.eases overnight, we could see more breaks in the crowd, showers across
:24:06. > :24:09.East Anglia and the south-east of England, which could be on the sharp
:24:10. > :24:13.side by the coast by the end of the night. Most places double figured,
:24:14. > :24:18.Scotland standing out as being somewhat colder with patchy across
:24:19. > :24:21.in the countryside. Early mist and fog lifting, then a little more
:24:22. > :24:26.sunshine on offer on Saturday, cloud coming and going, most of the
:24:27. > :24:29.showers across East Anglia and the south-east of England, where the
:24:30. > :24:33.breeze will be fresher. But otherwise temperature is very
:24:34. > :24:37.similar to date. In the sunshine, not feeling too bad. Similar on
:24:38. > :24:42.Sunday, not much changing, showers chiefly for East Anglia and the
:24:43. > :24:45.south-east of England, a lot of dry weather and sunshine at times. Much
:24:46. > :24:50.more dangerous weather, though, on the other side of the Atlantic. This
:24:51. > :24:56.is Hurricane Matthew, Haiti at the beginning of the week moving
:24:57. > :25:02.northwards, a direct hit at Freeport in the Bahamas, now sitting just off
:25:03. > :25:06.the coast of Florida. Slightly but still a major hurricane, category
:25:07. > :25:11.three. A lot of rain with it, eight to 12 inches of rain, storm surge
:25:12. > :25:13.and hurricane force winds across the coast of Florida, eventually heading
:25:14. > :25:17.towards the Carolinas by the weekend.