22/11/2016 BBC Business Live


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This is Business Live from BBC News, with Rachel Horne and Sally Bundock.


Britain's Brexit Minister meets with the European Parliament's chief


negotiator in the next few hours, but will they see eye to eye?


Live from London, that's our top story on Tuesday 22nd November.


The EU says no single market without free movement of people,


but the UK says other countries have access without this


Also in the programme, Trump trashes TPP.


After seven years of painstaking negotiations the US President-elect


says he will quit the deal on his first day in office.


And, what is the butterfly kite mark, and is it making a difference?


Asian stocks are up, all for American markets hit highs


yesterday, and in Europe they following the global rally.


And, what is the butterfly kite mark, and is it making a difference?


That's a conversation we'll be having with its creator.


The aim is to give high-end brands a social seal of approval.


And today we want to know, have you got an appetite


Apparently, this is the answer to the global food shortage


Get in touch, just use the hashtag #BBCBizLive.


It may not be a boxing match but there's no doubt that those


involved in the upcoming Brexit negotiations will come out swinging,


as both sides look to get the best-possible deal.


In the next few hours the UK's Brexit Secretary David Davis, this


guy, will meet with his counterpart, Guy Verhofstadt, and both gentlemen


Mr Verhofstadt has said that if the UK wants to remain part


of the single market, it will have to accept the free


But Mr Davis says that about 40 countries have some sort


of free-trade agreement with Europe without a deal on migration


If a deal can't be done before the UK leaves the EU,


and it's a distinct possibility, the UK would trade with the bloc


under World Trade Organisation rules, pending a possible


Andrew Walker, our economics correspondent, is here.


It is interesting, David Davis is doing the rounds, speaking to the


European Commission's negotiated yesterday, now the European


Parliament's negotiator. The parliament does matter, the famous


article 50, which has not been triggered yet, does say that any


agreement that is reached between the exiting country and the rest of


the EU has to be agreed by the member states, by a majority, but it


first needs to have the consent of the European Parliament, so if there


is going to be an Article 50 agreement, the people that the


European Parliament is representing have to give their consent. When the


EU appointed him, Nigel Farage was very forthright in his opinions on


how that will go, he said the EU has declared war on negotiations. He is


very much from the federal and of the spectrum on political views


former Belgian Prime Minister, he former Belgian Prime Minister, he


would like to see deeper you reap -- European integration. It is expected


to be prickly, tellers about the background. David Davis has


expressed some strong views about Shifa Hospital out, he is alleged to


have said in the past, get behind me, Satan, when his name was


mentioned. He himself has set out red lines about his views about


where the negotiation should go. No full access to the European single


market without some sort of corresponding free movement of


people to work across in the UK and the EU. It is true there are


countries that have substantial access to the EU single market


without the agreement, but it is not the degree of full barrier free


access that you have if you are a member. Like all of these


discussions, we are not going to know what has been said, we are just


going to get the party line after the private discussion. Yes, and the


view coming from big Europeans has been not any informal negotiations


before the triggering of article 50 takes Place, so no doubt they will


be exchanging views, but they will say, no, we have not been


negotiating as such. A lot more on that on our website. Nigel Farage


was going to be our guest, but he perhaps had other things to do, a


call from the US, perhaps. South Korea's troubled shipping firm


Hanjin will sell part of its container-ship business


to Korea Line in a $31 million deal. Korea Line will take over Hanjin's


operations in seven countries, In those markets, the new owner


will manage the shipping routes as well as assets and manpower


related to Hanjin's Brazil's government has


cut its economic growth forecast for next year


to 1%, from 1.6%. It also says the economy


will contract this year by 3.5%, The news echoes recent market


pessimism as the country struggles to exit its worst


recession in decades. Britain's Finance Minister Philip


Hammond is expected to announce a $500 million investment


into fibre broadband. He's due to say that the UK must


move towards providing fibre Currently, only 2% of the UK has


access to fibre internet. As we have just been discussing,


President-elect Donald Trump says the US will quit


the Trans-Pacific Partnership trade deal on his first


day in the White House. What has been the reaction? Only


yesterday Asian leaders agreed that they would continue pursuing


free-trade and the TPP, which would lower trade and investment barriers


among the countries come which account for 40% of the global GDP,


but now, without the United States, Japan is seen as the catalyst for


the TPP, but even the Japanese Prime Minister says that it is meaningless


without America, so the fate is somewhat uncertain. We have been


speaking to some governments in the region, seeking statements, and the


rest of the TPP nations, 11 countries, will continue issuing it,


in a hope that America will change its mind at one point all stop the


TPP is no longer what it could have been, but Asian nations would still


consider pursuing it. It will be interesting to see what is going


through the minds of those in China, they were not a part of TPP, perhaps


they feel they are winning as a side bar in this story. Indeed. Many


analysts seem to think that China is the winner in this case. As you


mentioned, China is not part of TPP. It was Barack Obama's way of saying


that America remains the leader in the region. Now, if Donald Trump


does scrap joining the TPP, does it mean that China could fill that gap?


Some are sceptical, because some leaders in the region are quite


concerned about China's export machine, but it has been issuing its


own free-trade deal, and it appears that it is winning quite a bit in


this deal. Markets in Asia climbed


for a second day following big gains on Wall Street,


pushed by an surge in oil, as hopes grow that Opec,


the Organization of the Petroleum Exporting Countries,


will give the green light In Europe yesterday,


the Ftse was flat, underperforming European markets after a jump


in the value of sterling. All of the European market up by


similar percentage points. Some individual stocks worth noting,


including HP, with demand for its printers weaker against a backdrop


of a shrinking PC market, the technology company is expanded to


report a drop in its fourth-quarter revenue. America's biggest discount


store dollar tree will turn in its results for the third quarter. Back


in August they already scaled back their full year sales forecast.


Joining us now is Nandini Ramakrishnan, global market


strategist at JP Morgan Asset Management.


Talk us through the oil price, the spike in oil, it is affecting


markets all over the world, in anticipation of the Vienna meeting.


Yes, towards the end of the month, it should give us some idea if there


will be a cut. The past two days have been defined by an oversupply,


producers producing as much as they can to gain market share, and when


you have oversupply, that drive the price down, so when we hear about a


potential cut, markets start pricing it up. I was mentioning the US


indices were all up yesterday following the global rally, is that


oil, the president elect, or a combination? Accommodation. A lot of


the American indices are oil or energy producers, so with a higher


oil price, the revenues will be higher, you have more confidence


that the companies will do well. You mentioned the indices in the US,


some include medium-sized companies, will benefit from a more


isolationist or closed off American political and trade situation, where


investors say small and medium-sized businesses are going to do better.


Some tech companies are doing badly. IT, telecoms, those large IT and


trade oriented stocks suffer when you have trade and the movement of


ideas and products and companies getting under the limits of a


potential presidential policy. You have more to discuss later,


including seaweed pastor. Yummy! Maybe not at this time in the


morning. We speak to the company that wants


to make sure high-end brands care as much about their employees


and the environment as they do You're with Business Live from BBC


News. A new breed of autonomous vehicles


are already on the road with driverless features,


but how should the insurance Vital to working out a claim


would be finding out if a car was being driven by the computer


at the time of an accident. British insurers want a standard set


of data agreed at an international level which would be


easily available in On an insurance-industry test


drive in Oxfordshire, a car which can drive itself


is being put through its paces. I am now switching on autopilot,


so the car is now driving Right now, even in a Tesla


or another car with self-driving features, you are not allowed


to take your hands off But as this kind of technology


becomes commonplace, all sorts of rules of the road


will have to change, a big challenge for drivers,


as well as insurers. And huge potential confusion,


as well, because the insurers need to know what system


is being fitted to what vehicle, and whether it is


switched on or not. When there is a crash,


were you driving, or was the car? In theory, in a few years' time,


I could be driving this car from the passenger seat,


letting the car take the strain. But that is going to involve big


changes in the law, and in the way the whole


insurance system works. Since Google unveiled


its driverless-car project, traditional car makers have raced


to introduce But insurers say in future cars


will have to record data about what happens before


and after every accident. We need access to a really basic set


of data, on the rare occasions that something goes wrong,


so that we can tell straightaway whether the car was driving itself


or whether the motorist And that will help us process


claims, it will help emergency services investigate accidents,


and it will help manufacturers In the long term, driverless cars


should make roads much safer. But we can expect many arguments


over whether the motorist or the machine is responsible


for an accident. Lots more on our website, take a


look at our page. This is one story that broke this morning, the B


owner reporting a boost in third-quarter trade. Driven by the


trader subsidiary. B doing well. Our top story, key Brexit


negotiators are meeting later today and both sides


will come out swinging. A quick look at how


markets are faring. The oil majors are doing well,


aren't they Rachel? We may get a cut in production from Opec. That's


pushing a global rally around the world with high markets in Asia and


we can see the European markets all opening up.


When you hear the term luxury goods what do you think of?


Expensive watches, the latest designer handbags or


What about the impact making those things has on the people


who put them together and the planet as a whole?


They are concerns that are increasingly being raised


in a market worth $268 billion worldwide last


year according to the consultancy firm, Bain.


Most of the profit comes back to western Europe.


Italy has 29 of the top 100 luxury goods companies by sales


They say the biggest luxury company in the world is France's


LVMH with sales of more than $23 billion a year.


It owns brands including Louis Vitton, Tag Heuer and Bulgari.


Some of those are amongst more than 300 brands that


This means they are deemed to have "a positive impact


It was the brainchild of Diana Verde Nieto


who is the co-founder and Chief Executive


of Positive Luxury the company which hands out the Butterfly Mark.


Thank you very much for coming on the programme. Where did this all


begin? What made you think of coming up with this idea? I used to work,


my first business was a sustainability communications


consultancy. We used to work with the brands. In that space you have a


lot of different certifications. You have the Fairtrade Foundation, and


the Soil Association, but there was nothing for luxury. Luxury is


aspirational and it is really what the consumer really aspire to have.


So I thought, it will be amazing to be able to provide, to people,


transparency on what luxury brands are doing and the way we do it is in


a holistic way. We don't focus on one area of the business, but 360,


we look at governance and mental frameworks and philanthropy. What's


the response been like? At the beginning, it is hard, but five


years on, it has been phenomenal and brands are willing to open up and


start disclosing what are the positive steps they are making. When


I approached the luxury, you know, high earning companies, big


turnovers and big revenues, when you initially approached them, how many


of them were able to say? Yes, we're already doing that. Open their books


and show you the positive things that they were doing and how many


did you have to change, change what they were doing and change the


environment for their workers? A lot. So we normally kind of reject


about 30% to 40% of brands because they don't meet the criteria that we


have for our assessment, but they're willing to do the work. So it is


slow. On the contrary also there a lot of the brands that were super


excited to really start communicating this. But I think the


media has an incredible role to play and to really celebrate


sustainability instead of every time that we talk about this, oh, a


brand, is in the headlines because what they haven't done instead of


what they have done. What's the consumers response to this? Are


consumers of luxury goods looking for these kind of kitemarks? For the


younger consume they are is a must. They don't live without. They go


online and really look for the information. So either the brand


provides it or they will find it anyway. The response of the consumer


has been tremendous and it is not just the luxury consumer because


everybody aspires to have a handbag or a watch or also the experiences,


it is also hold disand drinks. So everybody kind of at some point


really kind of tries to find out what the brand is doing. Just


explain how do you make money when you are doing this as a business.


You are providing a Kite mark for brands. You as an organisation, how


do you pay your bills and pay your wages? This is a consumer facing


Kite mark. It is really to provide transparency about what the brand is


doing. We licensed our technology. Our technology, sow see the


butterfly mark into any website that sell their products and on any


retailers that are selling the luxury goods or booking for example.


So a consumer can really see what the brands are doing. So the brands


have to pay you to get the technology. Is there any conflict


when it comes to deciding whether or not to award them the Kite mark? It


is easy, if they don't meet the criteria, there is not technology to


licence. Personally, transparency and integrity crisis is a must for


the business so we will never compromise on that. So you've


dominated luxury. What's next? Keep dominating luxury, but now globally.


Diana, thank you. Diana Verde Nieto. I wasn't aware of that Kite mark. We


will be looking out for it in future on goods.


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. We will keep you up-to-date with all the latest


details with insight and analysis from the BBC's team of editors right


around the world. And we want to hear from you too. Get involved on


the BBC Business Live web page at: On Twitter we are at: You can find


us on Facebook at BBC Business News. Business Live on TV and online


whenever you need to know. Let's talk about the seafood past


ta? Different kinds of foods that we may expect have to fill the need for


a growing population. The key fact is the UN says 60% of an increase is


needed in food supply in order to meet food needs by 2050. So I guess


seaweed is one of the answers to that. It is an known fact. These


events like the World Economic Forum, there will abside bar


discussion about the problem of food shortage in 2050, it will become a


big issue, won't it? There will have to be some innovation and rethinking


of our agricultural products and practises as we go forward and have


to support a growing and different type of population. We have got a


lot of tweets on this from our viewers. We have got Terry who says,


"I will be 85 in 2050 and I was "I will be 85 in 2050 and I was


going to live forever, but the thought of seafood past ta, I'm not


sure! " Another viewer says, "It sounds tasty." Rachel has been


saying yummy-yummy all morning. Alan says, "Having lived in Japan,


seaweed is a good idea, but I wonder what the environmental impact is? ?"


It is an interesting one because it is an economic and business combined


with environmental and agricultural issues in one theme. I'm guessing


2050 much more veg and much less meat. That's my guess.


Let's look at the other stories. We've got more than ?1 billion for


faster UK broadband expected in tomorrow's Autumn Statement. That's


happening here in the UK tomorrow where our Chancellor of the


Exchequer and Finance Minister Philip Hammond will be announcing


all sorts of things. What do you make of this story? It gives you the


impression that we're at the fore front, but we are way behind. It


does mention a couple of other countries who have faster


connections and better technology and the key point is for businesses


and for even consumers, but businesses more importantly having


that fast connectivity and that hi-tech infrastructure is really


important so we will be looking to see amongst the many details of the


Statement. Fibre to your home as opposed to cooper, it is faster,


isn't it? Much faster. They are saying it needs to be fibre all the


way into the home. How does that marry up with things like mobile


broadband or the idea is that this fibre to the roadside that we had


been focussing on has been leapfrogged? Is there a danger that


fibre to the home is going to be leapfrogged before we get there? It


is an interesting one. It is part of the larger infrastructure theme we


are looking for the statement tomorrow. It is part of the


technology boost that can help the UK business world. Just interesting


about this Autumn Statement tomorrow, of course there will be a


lot of announcements about lots of different measures, the idea is


giving the UK economy a much needed boost which will need during Brexit


negotiations and it is similar, isn't it, in the US with the Donald


Trump boost? Infrastructure projects and big spend. It seems like


infrastructure is the new seem. We have talked so much about monetary


policy and Central Bankers trying to stimulate growth in these economies,


is it time when we are seeing that fiscal stimulus, building roads,


technology that article we're talking about, it is a big theme


going forward and something we're looking forward to in tomorrow's


statement. Tomorrow, it will be roads, research and really fast


broadband. Sorted. She is on it tomorrow. We must keep an eye on the


pound as well in the next 24 hours. It has been fluctuating about the


support for Theresa May and it is one that will react quickly to news


flow. Thank you. It has been great to have you on Business Live today.


That's it. There will be more business news


throughout the day on the BBC Live webpage and on World


Business Report. Hello.


There are scores of flood warnings in place across England following


the last few days of wet weather extending into


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