28/03/2017

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:00:00. > :00:12.This is Business Live from BBC News with Sally Bundock and Ben Thompson.

:00:13. > :00:14.As Britain gets set to pull the trigger on Brexit

:00:15. > :00:17.what different has the referendum result really made to the economy?

:00:18. > :00:19.Live from London, that's our top story

:00:20. > :00:39.Greater prosperity inside the European single market was one

:00:40. > :00:42.of the dominant arguments of remainers - were they right?

:00:43. > :00:46.Or will the Brexiteers sums add up for Theresa May?

:00:47. > :00:48.Also in the programme: Making it's China ambitions plain.

:00:49. > :00:51.American Airlines teams up with China Southern to gain

:00:52. > :00:58.a foothold in one of the world's most competitve markets.

:00:59. > :01:00.And the European trading day gets off to a positive start -

:01:01. > :01:03.but could there be a cabinet reshuffle in South Africa today?

:01:04. > :01:08.We'll make sure you're across the key market moving stories.

:01:09. > :01:11.And when it comes to your health - what price would you pay

:01:12. > :01:16.We meet the firm that says it can tailormake your healthcare plan -

:01:17. > :01:19.and guide you through the confusing - and expensive - world

:01:20. > :01:27.And as confectionery giant Mars says its Maltesers,

:01:28. > :01:30.M and Minstrels packs are to shrink by 15%

:01:31. > :01:41.We want to know - do you prefer higher prices or smaller packs?

:01:42. > :01:43.Let us know, use the hashtag BBCBizLive.

:01:44. > :01:56.Get in touch. I'm sure you have a view.

:01:57. > :02:03.On Wednesday, Theresa May triggers Article 50,

:02:04. > :02:06.and the UK will start two years of Brexit negotiations

:02:07. > :02:17.So just how is Britain's economy doing - and have any

:02:18. > :02:23.of the predictions of doom and gloom come to pass?

:02:24. > :02:25.The UK economy grew by more than previously reported

:02:26. > :02:30.The value of goods and services produced in the UK -

:02:31. > :02:33.or Gross Domestic Product - was up by 0.7% - from 0.6% -

:02:34. > :02:37.according to the Office for National Statistics.

:02:38. > :02:42.The pound fell sharply after the Brexit vote,

:02:43. > :02:45.and has since been trading around 15% lower compared to the dollar

:02:46. > :02:57.The weaker pound has helped exporters and

:02:58. > :02:59.the tourism industry - but it's hit

:03:00. > :03:05.The FTSE 100 has risen 16% since the eve

:03:06. > :03:13.But the weak pound could be helping: big companies' profits are often

:03:14. > :03:16.international and calculated in dollars - and they automatically

:03:17. > :03:23.rise when converted back into sterling.

:03:24. > :03:27.After the referendum, the Bank of England boosted

:03:28. > :03:30.the economy by cutting interest rates from 0.5% to 0.25% last

:03:31. > :03:35.August - taking UK rates to a new record low.

:03:36. > :03:42.The unemployment rate has been falling and is currently

:03:43. > :03:46.around 1.6 million people - the lowest jobless rate since 2005.

:03:47. > :03:49.Meanwhile, in the three months to January, wages grew by 2.3%,

:03:50. > :03:53.compared with the same period a year earlier.

:03:54. > :03:56.He's the Europe associate at the political risk

:03:57. > :04:08.Salary running to the details and it appears from an economic perspective

:04:09. > :04:13.the UK is approaching these negotiations from a sound financial

:04:14. > :04:18.footing -- salary running. Yes, the public deficit is still quite large,

:04:19. > :04:22.but certainly I think it has impressed most observers and

:04:23. > :04:26.surprised them in how it has performed, talking about the UK

:04:27. > :04:32.economy, the growth outlook is still quite good and investment is still

:04:33. > :04:37.all right. Inflation is above 2% target and hasn't quite gone crazy.

:04:38. > :04:40.Overall the UK's economy is quite strong, but the question is whether

:04:41. > :04:46.the investment outlook remains the same and over the next two years,

:04:47. > :04:50.all the people that were interested in the UK for investing will be very

:04:51. > :04:55.interested in the deal that we get with our European partners, our

:04:56. > :05:03.biggest market, and the UK has been seen as a investing destination

:05:04. > :05:08.because it was inside the single market, but what about when it is

:05:09. > :05:11.outside? The first issue that you raise, the economy looks OK, but

:05:12. > :05:16.critics will say it looks fine because nothing has yet changed.

:05:17. > :05:22.This is the preamble, but triggering Article 50 is when it really starts.

:05:23. > :05:26.Absolutely. The uncertainty is key, but these two years, and you have to

:05:27. > :05:30.look at how it works, Article 50, and for the past eight months the UK

:05:31. > :05:33.has defined the timing so we know that we will be leaving at some

:05:34. > :05:36.point but the Prime Minister has been able to decide when she

:05:37. > :05:40.triggers Article 50 and what she says before and what the objectives

:05:41. > :05:44.are that she sets out and what business leaders she is able to

:05:45. > :05:48.reassure, but when we hand over power to Brussels to negotiate we

:05:49. > :05:53.will have less control and I think that will be quite soon, within 48

:05:54. > :05:57.hours the European institutions will publish a timeline of what will

:05:58. > :06:00.happen and it will be quite clear that we won't be negotiating our

:06:01. > :06:05.economic relationship first. That will come second, and that is not

:06:06. > :06:11.entirely reassuring to investors. What deal will we get? The question

:06:12. > :06:14.is always whether this is in the interests of the European Union to

:06:15. > :06:18.offer us a good deal, because that might set the ball rolling on other

:06:19. > :06:24.countries wanting to leave, but they won't want to penalise us because we

:06:25. > :06:29.are a trading partner, and working up the balance will be the toughest

:06:30. > :06:34.bit. Absolutely, the UK is seen as a very important economic partner and

:06:35. > :06:41.some countries want the relationship to remain positive. However they

:06:42. > :06:47.will want to maintain the internal logic of how the EU works and that

:06:48. > :06:54.will mean the UK can have favourable access terms as it does currently,

:06:55. > :06:59.which thinks, you can imagine a relationship without Harris, but on

:07:00. > :07:02.nontariff barriers including regulation and services markets it

:07:03. > :07:07.will look much more complex than it does -- you can imagine a

:07:08. > :07:11.relationship without tariffs. Getting all this done in two years

:07:12. > :07:13.will be very difficult. I imagine we will talk about this again. Thanks

:07:14. > :07:21.for joining us. The London mayor has been talking

:07:22. > :07:28.this morning and he said it would be a major mistake if the EU tries to

:07:29. > :07:33.punish the UK for Brexit. He is calling on the EU to rise above the

:07:34. > :07:39.temptation to install fear during the Brexit negotiations. Now to some

:07:40. > :07:40.other news. Tesco has struck a Deferred

:07:41. > :07:41.Prosecution Agreement with the Serious Fraud Office

:07:42. > :07:44.following its investigation into the supermarket's overstatement

:07:45. > :07:46.of profits in 2014 by ?263m. The inflated profit figure

:07:47. > :07:49.was the result of Tesco bringing Tesco has also agreed

:07:50. > :07:55.with the Financial Conduct Authority to set up a compensation scheme

:07:56. > :08:05.for shareholders that It has apologised for the errors and

:08:06. > :08:25.investors will receive compensation of just over $100 million.

:08:26. > :08:27.The billionaire Elon Musk is launching a company that he hopes

:08:28. > :08:29.will merge computers with the human brain.

:08:30. > :08:32.The creation of Neuralink Corp will pursue what Musk calls

:08:33. > :08:33."neural lace" technology - implanting tiny brain

:08:34. > :08:35.electrodes that might one day enable the uploading

:08:36. > :08:39.The EU's health commissioner says Brazil needs to restore trust

:08:40. > :08:42.in its meat exports after being hit by a scandal over rotten produce.

:08:43. > :08:44.A number of countries have placed tough restrictions

:08:45. > :08:54.The country has seen its daily meat exports plunge by 19%.

:08:55. > :08:56.It comes investigations by the Brazilian authorities found

:08:57. > :08:58.rotten produce and suspected corruption across the industry.

:08:59. > :09:01.The world's largest carrier - American Airlines -

:09:02. > :09:05.is set to buy a $200m stake in Chinese Southern in a bid

:09:06. > :09:14.It's being described as a stretgic partnership -

:09:15. > :09:17.as China is one of the world's fastest-growing aviation markets.

:09:18. > :09:18.The International Air Transport Association predicts that it

:09:19. > :09:21.will surpass the US to become the biggest in terms

:09:22. > :09:24.Our Correspondent, Robin Brant, is in Shanghai.

:09:25. > :09:32.The issue, it's a huge market and one that the American Airlines want

:09:33. > :09:36.to be involved with. Everyone would like a slice of the travel market,

:09:37. > :09:41.especially here, and American Airlines relatively late to the

:09:42. > :09:49.party because United already have a tie-up with China and Delta as well.

:09:50. > :09:51.American Airlines, the latest to the party, but they are the biggest

:09:52. > :09:59.airline in terms of scheduled passengers. China Southern are the

:10:00. > :10:02.biggest in China in terms of flights and passengers they carry, and that

:10:03. > :10:07.is the marriage we are getting. This is part of the broad strategy led by

:10:08. > :10:10.the government in Beijing which owns majority stakes in these three big

:10:11. > :10:14.domestic airlines to change the ownership structure and encourage

:10:15. > :10:19.foreign investors. And tried to bring in a foreign management

:10:20. > :10:21.culture, although this is a 2.5% stake and I don't think we will

:10:22. > :10:26.a big change in terms of the way a big change in terms of the way

:10:27. > :10:31.that China Southern is run. In terms of the service as a passenger on

:10:32. > :10:37.these airlines, I have to say they get you there on time, but expect

:10:38. > :10:41.big delays if you are going to China, often with no apologies, and

:10:42. > :10:45.maybe there is room for improvement and maybe American will do something

:10:46. > :10:51.there. I'm sure they are listing to you and writing notes. Thanks for

:10:52. > :10:58.joining us. -- listening to you. He sounded like a frustrated traveller.

:10:59. > :11:08.And now to the markets. The yen has not moved that much versus the

:11:09. > :11:13.dollar but the markets have stabilised after the wobble that

:11:14. > :11:20.started late Friday when President Trump did not get through his

:11:21. > :11:23.changes to Obamacare. That is what caused a wobble at the beginning of

:11:24. > :11:29.the week but we are back to steady as she goes. Now to Europe, we have

:11:30. > :11:34.the mining stocks pushing up the FTSE 100, they are the big winners

:11:35. > :11:41.so far. We will talk in more detail about what is going on. We can now

:11:42. > :11:45.go to Wall Street first. Donald Trump is keen to make good on his

:11:46. > :11:55.promise to undo barrack Balmer's climate push, especially the clean

:11:56. > :11:58.power plant -- Barack Obama. This is where a significant amount of

:11:59. > :12:05.America's carbon dioxide emissions come from, and the role was a

:12:06. > :12:09.frequent target of Republicans who said it was a job killer and called

:12:10. > :12:13.it government overreach and so no surprise it is on the chopping block

:12:14. > :12:16.and the president is expected to sign an executive order which will

:12:17. > :12:21.make it easier for companies to produce energy in the United States

:12:22. > :12:28.by reversing many of the regulations which were tied to climate change

:12:29. > :12:31.which were set by Barack Obama. There will also be a moratorium on

:12:32. > :12:34.new leases for coal which is mine from federal and lands, but the

:12:35. > :12:38.steps are not likely to bring back the coal industry which was one of

:12:39. > :12:43.the campaign promises of Donald Trump, and there are the global

:12:44. > :12:47.implications for top the clean power plant was an important part of the

:12:48. > :12:52.US meeting the goals set out under the Paris climate agreement but this

:12:53. > :12:56.executive order signals that fighting climate change is not a

:12:57. > :12:58.priority for this administration. Thanks for joining us.

:12:59. > :13:00.Joining us is James Bevan, Chief Investment Officer at CCLA

:13:01. > :13:13.Let's quickly touch on Article 50, a big day tomorrow. The calm before

:13:14. > :13:17.the storm. It will be a very slow burner. We have to spend the next

:13:18. > :13:22.two years at least getting up to speed with what will happen. The

:13:23. > :13:28.reality is we will not have concluded the negotiations and there

:13:29. > :13:34.will be plenty of uncertainties. In terms of the market, they feel more

:13:35. > :13:38.stable today? Yes, they do. Everyone anticipated that Donald Trump 's

:13:39. > :13:47.back challenges on Obamacare were a one-off and at some stage it will

:13:48. > :13:53.file, and there is a sense that he will deliver on tax cuts which is

:13:54. > :13:59.what the recent rally has been about -- it will fail. We can have a look

:14:00. > :14:06.at South Africa, it came across the wires that the finance minister had

:14:07. > :14:10.been hauled back to South Africa, and a cabinet reshuffle is expected,

:14:11. > :14:16.or that is the speculation. The Rand is falling. We know that the finance

:14:17. > :14:25.minister and the Prime Minister do not get on and have got on for ages.

:14:26. > :14:29.Whether or not the five -- finance minister has been called back to

:14:30. > :14:36.learn about another shuffle or this is a power play and he has got to be

:14:37. > :14:39.shown who is boss by the president, but the domestic uncertainties will

:14:40. > :14:43.be bad news for the Rand when the South African economy is doing

:14:44. > :14:50.rather better. The central bank is expected to cut rates very soon and

:14:51. > :14:56.growth is Excel are rating -- is accelerating. James, thanks for

:14:57. > :15:04.joining us. Many people getting in touch about their views on

:15:05. > :15:05.chocolate, some saying they want the same size and others saying you have

:15:06. > :15:07.got to cut down. We meet the firm that

:15:08. > :15:10.sells second opinions And offers to guide

:15:11. > :15:13.you through the confusing - You're with Business

:15:14. > :15:30.Live from BBC News. Let's get more on the news that

:15:31. > :15:33.Tesco has been hit with a fine of ?129 million by the Serious Fraud

:15:34. > :15:36.Office. It follows a two-year investigation

:15:37. > :15:38.into false accounting Theo Leggett has the details

:15:39. > :15:52.in our business newsroom. Theo, let's start first of all with

:15:53. > :15:56.this SFO investigation it goes back to 2014, a huge black hole in their

:15:57. > :16:01.finances. Bring us up-to-date with what we know today? Well, the

:16:02. > :16:04.Serious Fraud Office and Tesco have reached an agreement on a deferred

:16:05. > :16:10.prosecution agreement. That means that Tesco has effectively been put

:16:11. > :16:13.on probation. What did it do wrong? Well, back in August 2014 Tesco

:16:14. > :16:17.published a trading statement. It later transpired that the profits in

:16:18. > :16:21.the trading statement were substantially overstated. Initially

:16:22. > :16:26.it was thought by ?250 million. That figure was later upped to ?326

:16:27. > :16:30.million. So a serious overstatement of profits and it had to do with how

:16:31. > :16:35.Tesco was booking money coming from its suppliers. On top of that

:16:36. > :16:38.agreement to pay a penalty to the Serious Fraud Office, Tesco has

:16:39. > :16:42.reached agreement with the Financial Conduct Authority to pay

:16:43. > :16:46.compensation of ?85 million to shareholders. Why? Well, look at

:16:47. > :16:49.this graph. In 2014 Tesco's share price was falling anyway, but this

:16:50. > :16:54.is what we're interested in here this. Is when the trading statement

:16:55. > :16:57.was published and this is just after all that bad news came through.

:16:58. > :17:02.There was a serious drop in Tesco's share price so it has been told to

:17:03. > :17:04.compensate shareholders and bond holders who were holding shares

:17:05. > :17:12.during that period. So there you have it. A big deal for Tesco. Can

:17:13. > :17:17.you tell us about Booker? Its intended purchase of this company

:17:18. > :17:22.and some major shareholders are not happy and they're going public? This

:17:23. > :17:30.is a major, major deal that Tesco wants to push through, a ?3.7

:17:31. > :17:36.billion purchase of Booker. It owns the right to the budgeon and Premier

:17:37. > :17:41.brands. Tesco thinks it can get into the food away from home market which

:17:42. > :17:45.has more potential for growth than the supermarket business. One of its

:17:46. > :17:48.group has said it is not happy. It thinks Tesco is paying too much and

:17:49. > :17:52.that therefore, this deal offers poor shareholder value. Tesco

:17:53. > :17:56.disagrees. It thinks it's a great deal.

:17:57. > :18:07.Theo, thank you very much. Full details on the website.

:18:08. > :18:17.We are keeping track of the big story of the week. Tomorrow, the UK

:18:18. > :18:23.will formally ask to leave the European Union. London's mayor is

:18:24. > :18:27.warning it would make a mistake fort bloc to try and punish the country.

:18:28. > :18:31.We have been hearing from the London mayor, talking about the trade links

:18:32. > :18:34.between the two. We have had a line out from Germany, from the German

:18:35. > :18:38.Chambers of Commerce saying that Britain's departure from the EU

:18:39. > :18:42.could hurt German firms business with the UK and investment. He says

:18:43. > :18:46.will decline strongly in the long-term. That's the President of

:18:47. > :18:50.Germany's Chamber of Commerce. We will get all sorts of reaction as we

:18:51. > :18:57.approach the deadline tomorrow to trigger Article 50. Two years.

:18:58. > :19:01.A quick look at how markets are faring.

:19:02. > :19:11.A bit of calm. We'll enjoy it while it lasts. It could all take a long

:19:12. > :19:15.time to play out so we will keep you across the changes.

:19:16. > :19:19.President Trump's failed attempt to replace the affordable care act

:19:20. > :19:24.in the US has put the cost of healthcare back in the spotlight.

:19:25. > :19:27.The global cost of health care is forecast to hit a staggering

:19:28. > :19:33.That's 10.5% of GDP - spent solely on health care.

:19:34. > :19:36.So, is there a way to keep costs down?

:19:37. > :19:39.Well, one way could be through early diagnosis and prevention to save

:19:40. > :19:48.And one company says it is already doing that.

:19:49. > :19:50.Alivia Swiss Health will assess your health problems,

:19:51. > :19:57.devise treatment plans and connect patients to leading specialists.

:19:58. > :20:01.It is like getting a second opinion with a highly skilled team.

:20:02. > :20:07.All for an annual fee of around $1,000 a year.

:20:08. > :20:10.Dr Vidar Arnulf is the co-founder and Chairman of Alivia Swiss Health

:20:11. > :20:18.Welcome to the programme. We touched on how it works there. Talk us

:20:19. > :20:22.through the process. How is it different to going to another doctor

:20:23. > :20:26.and saying, "Look, this is the diagnosis I have been given from

:20:27. > :20:31.this guy. Talk me through it." Talk me through the package. We give you

:20:32. > :20:35.access to a number of specialists, we don't think there is only one

:20:36. > :20:39.doctor who can know everything. We have a team of scientists, doctors,

:20:40. > :20:45.internationally who will go through your individual file, assess it and

:20:46. > :20:49.then come up with suggested treatment and diagnostic procedure

:20:50. > :20:53.and verification of that diagnosis. The worst doctor out there is Dr

:20:54. > :20:57.Google, the one you should always avoid because it will fill you with

:20:58. > :21:02.fear, but the point actually there is so much information out there at

:21:03. > :21:08.the moment to anyone that is able to do the search. Why do we need to pay

:21:09. > :21:11.to you do that when we can do this ourselves? Well, I don't think you

:21:12. > :21:16.can do that yourself. If you Google treatment for cancer you will get 28

:21:17. > :21:20.million hits within 0.5 seconds and how do you... If you whittle it down

:21:21. > :21:26.to the name of the particular contrast you have and don't just put

:21:27. > :21:31."Cancer" You will get a more defined search. There are ways of finding

:21:32. > :21:36.out these things. It takes time. It takes time and you don't know the

:21:37. > :21:42.quality of it. I usually compare second opinions with being sick just

:21:43. > :21:47.like at war. It is the civilian population that is the victims of

:21:48. > :21:51.all wars. The soldiers know what to do and have the information and have

:21:52. > :21:58.the intelligence, they do better and I think when you're sick you're at

:21:59. > :22:04.war with yourself and having somebody to come up with contingency

:22:05. > :22:09.plans and give you knowledge and empower to make the right decisions

:22:10. > :22:14.for you, that's an asset. Is this just for rich people? Looking at the

:22:15. > :22:19.figures here. You have got 500 patients here paying ?800, that's

:22:20. > :22:22.$1,000 a year. In the big scheme of things, maybe it is not that much

:22:23. > :22:28.money, but it is an extra cost. It is a cost that people have got to

:22:29. > :22:34.bear and how do you make money from that, 500 patients paying $1,000

:22:35. > :22:41.isn't much money to run a business? It is not only ?1,000, it is ?800.

:22:42. > :22:46.It starts at ?800. It could be more. It could be less. But we have seen

:22:47. > :22:50.we have changed lives. We have changed the destiny of people who

:22:51. > :22:54.had given up op the health care systems and I think it is so

:22:55. > :22:59.important for us to make that available for as many as possible

:23:00. > :23:03.and that's why we are introducing this relatively reasonable pricing

:23:04. > :23:07.for world experts to look into your case. All right. We are out of time

:23:08. > :23:13.which is a real shame. So much more to discuss. But for now, thank you

:23:14. > :23:15.very much, Dr Vidar Arnulf for come unwilling.

:23:16. > :23:22.-- coming in. A new ?1 coin becomes legal tender

:23:23. > :23:27.in the UK from today. It is being rolled out

:23:28. > :23:41.across the country to tackle It has got more sides. Do you think

:23:42. > :23:42.I can get a new career? As a hand model.

:23:43. > :23:46.This is the first new ?1 coin to be introduced in more than 30 years

:23:47. > :23:49.and will be the most secure of its kind in the world,

:23:50. > :23:57.The first pound coin down the back of the sofa already!

:23:58. > :24:09.We've done nearly 4,000 across the country.

:24:10. > :24:13.It's made out of two different coloured metals.

:24:14. > :24:15.So there's a nickle, a white coloured metal inner

:24:16. > :24:18.In addition we've got a semi-hologram.

:24:19. > :24:21.If you look at it in one direction, you'll see one image.

:24:22. > :24:23.In the other direction, you'll see another imaage -

:24:24. > :24:47.So this pound will buy you less chocolate because it is shrinking.

:24:48. > :24:52.This is about Mars? I eat a lot of chocolate. What we have observed are

:24:53. > :24:56.the costs for chocolate manufacturers have been going up

:24:57. > :25:00.both because of the devaluation of the pound, but Mr Hammond's decision

:25:01. > :25:04.that he should be taxing sugar it make us healthier and the chocolate

:25:05. > :25:11.companies reckon it is there is a pricing point we're prepared to pay

:25:12. > :25:16.and no more and guys we will give awe reduced amount of chocolate

:25:17. > :25:23.rather than putting the price up. We saw it with Toblerone. It has been

:25:24. > :25:27.going on for years. Easter eggs used to be big, fat chunky things and

:25:28. > :25:40.they're getting thinner! What's your favourite? I like Maltesers. Or a

:25:41. > :25:44.Swiss Lint egg. You're a chocolate snob? The texture of chocolate

:25:45. > :25:48.really matters and that's good. James. Thank you. There has been a

:25:49. > :25:55.tonne of responses to our question. If you want to see them all, search

:25:56. > :25:59.the BBC Business Live hashtag on Twitter. A lot of people saying it

:26:00. > :26:07.is for your health too. We will see you soon. Bye-bye.

:26:08. > :26:13.Good morning. Things are changing on the weather front. High pressure is

:26:14. > :26:17.slipping away towards the near Continent and this big low in the

:26:18. > :26:18.North Atlantic is slowly taking