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airlines between 1.5 billion and 6.2 billion in 2025 each and every year.
This deal is voluntary. It is very important to remember. It does
become compulsory not until 2027, with some countries with the airline
sectors. Let's stay with this. Femke de Jong, the EU policy
Director at Carbon Market Watch, Great to have you with us. This has
been a long time coming, right? So many will say. When you look at the
grand scheme of it all, the bigger picture, 2%, that is what airlines
contribute, 2% the man-made CO2 emissions, that doesn't sound like a
lot, does it? Well, it depends on how you look at it. At this moment,
the aviation sector is one of the top ten global carbon polluters,
emitting more CO2 per year than the 129 lowest emitting countries. Its
emissions are set to quadruple in the coming decades, so it is a
problem that needs to be tackled, and we need... OK, great, but this
deal, is it the right deal, it is interesting. At the moment it is
only voluntary up until 2027, then it becomes mandatory. But correct me
if I'm wrong, it says it becomes mandatory for the countries with the
big airline sectors. What does that mean, a country with a big airline
sector? Well, it means that from the year 2021, up to over 60 countries
have committed to take part in this deal to curb aviation's climate
impact. This includes countries like the UK, the United States, but also
China, for example. What it does not do is represent a global scheme. So
it started off carbon neutral for 2020, it will not be reached because
it only covers 80% of aviation's emissions growth. What about
shipping? The shipping industry. Is there a similar deal in place? I
mean, talks about the shipping industry, all of those cargo ships
and carriers an uproarious, apparently, for emissions and
polluting -- note aureus. It is true that the emissions industry is one
of the sectors which have not been faced with binding carbon cuts, and
the same applies indeed to aviation. So far, aviation's emissions have
not been tackled by any global deal. The aviation sector operates in a
world where they do not pay fuel taxes, it is good that we start
addressing this problem and the deal yesterday is just the first step in
effect in order for us to limit global warming to levels that are
safe much more needs to be done. Thank you very much, we appreciate
your time, thank you for joining us from Brussels. Good to see that the
airline industry has got together and done something, maybe the
shipping industry needs to do the same, that's all I'm saying.
Voluntary until 2027, that's all I'm saying.
Shortly after currency markets opened in Asia on Friday,
the pound lost as much as 6.1% in two minutes.
It was the currency's lowest level since May 1985,
and the biggest intraday drop against the dollar since its plunge
in the wake of the UK's vote to leave the EU.
They are talking about a flash crash. What happened over there
during this trading session? Was it big fat thumbs? I'm not sure. That
was the initial guess among the traders here, and that is back
around 7am local time, just after midnight local time, the Stirling
started the plunge, they wondered if it was just a human error, also
known as a fat finger, because there was no obvious reason it could have
triggered a sell-off. But then it seemed like the plunge started
shortly after the Financial Times published an online article about
the French president talking about tough negotiations ahead of Brexit.
What happened was, a lot of banks have their computers set up to react
to certain keywords, and it seems like this FT article has triggered a
sell-off. It came as a huge surprise to many traders here in Asia. Thank
you, we appreciate the update, we will talk to you soon. We are asking
her if she can talk to the traders and get the pound up, I want it at a
record high! We will have more on that story a little later on with
our guest. Samsung Electronics says its third
quarter profits will be better than expected,
despite the damaging recall of its flagship Note 7 smartphones
over exploding batteries. Samsung says it probably made
profits of $7 billion in the three It releases full results
at the end of the month. Twitter shares have continued
to plunge after a report cast doubt The tech website Recode reported
that Google and Disney would not bid for the social network -
and that Apple was unlikely Cloud software maker Sales Force has
also been named, but has yet And the photo-sharing app Snapchat's
parent company is working on an initial public offering that
could value the company The Wall Street Journal is reporting
that Snap Inc is looking to sell What a success story. It's for the
young ones, actually! Let's be frank, let's be frank Viktoria
Komova on. At least I have an account! You've got to learn how to
use it now. Check out the Business Live page, a great site updated all
the time. Another reminder of Deutsche Bank, we have been talking
about but the past couple of weeks, a lot of worries, the IMF and global
organisations are saying it is the most dangerous bank in the world,
but we are saying there is no Lehmann Brothers moment. The
officials are trying to reduce that $14 billion fine, talking about
going down to about 5 million. -- 5 billion. But Jean-Claude Junker says
that Germany is not going to let this bank fail, it is too big to
fail and Beowulf Dublin. It's worth saying that the share price has
recovered yet again. We saw some big falls last week, it is recovered,
there is confident it is being shored up, although there are
rumours swirling. Let checking with the stock markets. The pound briefly
and mysteriously plummeted to fresh lows in early trading. Amid this,
persistent concerns about Britain's exit from the EU. The McKay in Japan
is down about 39 points at the end of the session, it followed a
turbulence session on Wall Street as well. European trade has been open
about 40 minutes, and of course everyone is keeping an eye on the
pound and seeing what is going on, the pound versus the dollar. We have
got some tweets, too. I will cover them during the rest of the
programme, keep tweeting. Let's talk to the bloke with the red races. --
red braces. Joining us is Justin
Urquhart-Stewart, co-founder and director of Seven Investment
Management. We normally talk about markets, can
we talk about a flash crash, this being in Asian trade with the pound
dropping. Let's explain to those who don't typically follow it, how does
this work? You have got various levels of foreign exchange trading,
a lot of it is done manually with individuals carrying out raids, but
the majority of these is carried out automatically, so they will have
programme trades operating foreign exchange, they will have
institutions doing their trading, there is a lot of background noise
going on. And as you were hearing just now, some of those trades will
react automatically, sometimes the words being said, the numbers being
breached, and an automatic trigger. In this case, it might be a French
swearword coming out and somebody reacts to what the French are saying
about the British and that reacts on the pound, that can happen, but
these should have brakes on them as well, they can only go so far. It
shouldn't have eight trigger effect like dominoes. Where we actually do
find out what happened here, it will be interesting, wasn't a human
reaction, a fat finger, somebody got the trade romcom or was it an
automated trade that carried on other automated trades with it. It
is worth saying that any automated system is being initially inputted
by people, and so what are the trigger points, for example, that
could trigger an automatic system to keep falling down? Are they looking
for words in the media, for example? Could it be our full but we are
talking about Brexit? We could actually be talking it down, is that
possible? What you do is you build an algorithm and that will be built
to react to certain things, normally it will be numbers coming through.
But it particular figures, if it goes below a certain level, but now
developments are going on, it react to news and particular words. The
markets are changing so rapidly now. It is not just mathematical, you
have designed it so it is reacting not quite do emotions but there are
keywords coming up it will have an impact. Smart machines, interesting.
So if I read that the UK economy would grow 10% next year, would that
help the pound go up? No. Still to come...
Our economics correspondent Andrew Walker will be here to talk
Could this be the data that cements the timing of the next rate
You're with Business Live from BBC News.
The reason we ask is because confidence among UK
businesses has returned to pretty much the level it was at before
the decision to leave the European Union.
Why did you say it like that? To keep them interested here in the UK!
And it's having a big impact on the number of staff that firms
But what about how much they're prepared to pay them?
Our business correspondent Theo Leggett has the answers.
The recruitment and employment in the Reg on have put out a report
saying that in September the number of permanent and temporary staff
taken on by companies have increased for the second successive month.
Back in June and July there was a dip around the time of the
referendum, now it is picking up again. Demand for Stav continues to
rise, biggest in the engineering sector. For permanent and temporary
staff it was in the hotel and catering sector and the
Confederation says it shows that businesses are getting over the
initial shock of the referendum result, shrugging it off. But there
are some important caveats. For a start, permanent hiring has not
increased in London and the Confederation says it is probably
because of concerns over what the EU result will mean for the financial
sector in particular, whether Pat Sporting rights are kept and whether
any business will move abroad. It says the number of people available
to fill roles is going down, which is a point of concern.
Britain looks like it is looking at a hard exit
from the EU, Theresa May not looking bad she will accept the free
movement of Labour. Could the immigration crackdown, if
we see one, lead to staff shortages? The recruitment and employment
Confederation seems to think it is a concern, they say, we urge the
Government to be mindful of talent shortages faced by many UK employee
is. Despite some of the rhetoric at the Conservative Party conference,
we will continue to need workers from overseas in a range of sectors
from engineering to health care. It says they need a rational debate
between business and Government about a sensible immigration policy.
Thank you very much. Can we quickly get on the screen the Business Live
page? Look at that, incredible, from the Bloomberg terminal, it shows the
drop, the fall off the cliff of the value of the pound during that Asian
trading session. The world's first aviation
pollution agreement has been approved
by the UN agency, ICAO. The deal is expected to limit
the growth of emissions A quick look at how
markets are faring. The European trading session has
opened and unsurprisingly the FTSE 100 rising yet again. Remember about
75% of the companies listed on the FTSE 100 are pretty international in
focus which means any fall in the value of sterling improves their
profit margins for anything coming in from America or Europe, anything
that they make abroad. That is why we often see this inverse
relationship between the value of the FTSE 100 going up and the value
of sterling going down, particularly against the dollar.
It's been a terrible week for sterling -
Globalisation has been on the agenda too this week,
with discussions about how increasing amounts of international
economic integration have affected incomes around the world.
Plus there's much to talk about on US jobs,
Let's get the Inside Track on all this with our economics
Good to see you. Happy Friday!
Let's start with the US jobs. Again, leaning towards whether we will get
an interest rate rise, will display into that?
Absolutely, we are expecting a figure of around 170,000 additional
jobs created in the last month in the United States economy. It has a
growing Labour force so you need to have a certain number of new jobs
created just to keep up with that but 170,000 would be better than
that keeping up level. So, yes, it would tend to play into the
possibility of bringing a rate rise, perhaps in December, which is what
most people in the financial world seemed to be expecting. Worth
remembering the other element is inflation, we have really low
inflation in the UK but the US is still below the fed's target but
still significantly higher at if you take out a volatile food and energy
prices it is getting towards the 2% target, 1.7% of the most recent
figure. The Fed has eye on inflationary pressures than the Bank
of England or the ECB. Not bad given what we are seeing in
Europe and here, and inflation rate closer to 2%, the ideal mark.
In the bulk of the developed world, inflation is seen as too low. In the
UK, the Eurozone and Japan. So, yes, I imagine we are going to move on to
talk about sterling doctor-macro I see what you are doing there!
Aren't you supposed to do that bit?! We will share some of these tweets,
what is the impact? It highlights the pros and cons of the week are
valued currency. Emil Sorheim, with an upcoming trip to the UK to
celebrate my birthday at the Royal Opera House, the weak pound is a
wonderful birthday gift! In terms of the link with inflation,
likely to see a boost in inflation if sterling remains weak.
First of all, happy birthday a meal! Normally a depreciation in the
currency is something you welcome on some grounds but worry about the
inflationary impact but these are not normal times as we have said so
many times. For the Bank of England, yes, there is that welcome aspect
which means it will push inflation up somewhere. There is a possibility
that if it is a very large ball and it has been substantial already, it
might push it up too far, through the Bank of England's target, and
the forecast from the International monetary fund this week suggested it
could get as high as 2.5%, which would be above the Bank of England's
target but not so much to be a huge problem in itself. The issues would
be if it went much further and obviously the question of whether
pay will keep up with any surge in inflation and whether it will affect
people's real incomes after inflation at first it.
Another treat here from Joe Richards who is talking about the impact in
terms of what they have to buy in stock, the goods that they need to
use and where they come from, and it has a big effect there.
For businesses that are importing a lot of components, raw materials,
surprise, yes, there is a direct affect on them. It will either be
reflected in what they charge their consumers, they may pass it on, or
maybe absorb it in lower profit margins, it is a decision they will
have to take. Some businesses I think will look at the situation of
demand for their goods and services and think, maybe we had better take
the hit in the margins and hope we will be able to recover the profit
later on. Bobby was around the world, -- for
viewers around the world, the UK imports more than it exports?
We have quite a large deficit in international trade, and one of the
hopes is the depreciation of sterling will make imports less
competitive, exports more competitive, and might reduce the
deficit over time. We will have to start making more
stuff! Manufacturers in particular are
sensitive to changes in the exchange rate so it may be helpful for them.
Andrew, always a pleasure, have a great weekend.
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 page is where you can stay
ahead with all the day's breaking business news.
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with insight and anaylsis from the BBC's team of editors
Get involved on the BBC Business Live webpage,
On Twitter we're @BBCBusiness, and you can find us on Facebook
Business Live on TV and online - whenever you need to know.
Justin Urquhart-Stewart is joining us again.
You liked this story, do you drink a lot of bottled water?
I don't, because I think it is wasteful and we have good sanitation
here, but not many people agree with me!
But London water is supposed to pass through the body of about nine
people! So long as they keep testing...
Tell us about the story? An article in the Guardian which takes the
industry, worth $157 billion, they reckon by 2020 it will grow to 280
billion, bottled water. All the different types, the different
names, there is one called Ugly, but some of the descriptions they come
up with, Coca-Cola's Smart Water, it just comes from Northumberland! Do
you remember Peckham Spring in Only Fools And Horses? It was a spoof on
bottled water, they made it up as coming from Peckham. But the idea of
this Smart Water, it is vapour distilled and Coca Cola says it is
inspired by clouds! You can get water from Fiji, or
Peckham Spring is! This started with our fixation in
the continent with Perrier, everyone wanted it but at least it had
bubbles, the still waters are all virtually the same but you pay a
premium price. Because it is Friday, can we skip
the president Obama thing and go with Indigo airlines, a Budget
carrier based in India, and it is the first time we have heard about
an airline doing this, childfree zones? You have kids, did you fly
with them? No!
Like the Royal family, you don't fly together!
It is a lovely idea, why hasn't anyone done it before? Does it mean
on the plane you are separated from the child, or you have to leave the
child behind?! You leave the child on the plane but
it is only a few rows behind! Those trolleys with the food in, you
could get several children on those trolleys, they would be wheeled back
down as you leave the plane! Your child, Sir?
Airlines, are you listening to this?!
As long as you get the right one on the way out!
Hello, cloud amounts may vary from one day to the next but the general
weather pattern really isn't going to change much in the next few days.
Most of the thick rain bearing cloud comes from the Atlantic but it just
stops to the west of us, it is getting blocked by a huge area of
high pressure centred over Scandinavia which is influencing our
weather. We are drawing in an easterly breeze, perhaps not as
strong as it has been, a lot of cloud on that breeze, maybe more
sunshine as we head into the afternoon but equally one or two
showers as well. After a frosty start with patchy fog, the best of
the sunshine across northern Scotland. It will be rather cloudy
for Northern Ireland, as it will be for southern Scotland, but for most
of England and Wales and little sunshine at times, the best of that
perhaps across north-west England and north-west Wales. One or two
showers dotted about, especially in eastern England. The easterly breeze
eases overnight, we could see more breaks in the crowd, showers across
East Anglia and the south-east of England, which could be on the sharp
side by the coast by the end of the night. Most places double figured,
Scotland standing out as being somewhat colder with patchy across
in the countryside. Early mist and fog lifting, then a little more
sunshine on offer on Saturday, cloud coming and going, most of the
showers across East Anglia and the south-east of England, where the
breeze will be fresher. But otherwise temperature is very
similar to date. In the sunshine, not feeling too bad. Similar on
Sunday, not much changing, showers chiefly for East Anglia and the
south-east of England, a lot of dry weather and sunshine at times. Much
more dangerous weather, though, on the other side of the Atlantic. This
is Hurricane Matthew, Haiti at the beginning of the week moving
northwards, a direct hit at Freeport in the Bahamas, now sitting just off
the coast of Florida. Slightly but still a major hurricane, category
three. A lot of rain with it, eight to 12 inches of rain, storm surge
and hurricane force winds across the coast of Florida, eventually heading
towards the Carolinas by the weekend.