28/03/2017 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Thompson.


As Britain gets set to pull the trigger on Brexit


what different has the referendum result really made to the economy?


Live from London, that's our top story


Greater prosperity inside the European single market was one


of the dominant arguments of remainers - were they right?


Or will the Brexiteers sums add up for Theresa May?


Also in the programme: Making it's China ambitions plain.


American Airlines teams up with China Southern to gain


a foothold in one of the world's most competitve markets.


And the European trading day gets off to a positive start -


but could there be a cabinet reshuffle in South Africa today?


We'll make sure you're across the key market moving stories.


And when it comes to your health - what price would you pay


We meet the firm that says it can tailormake your healthcare plan -


and guide you through the confusing - and expensive - world


And as confectionery giant Mars says its Maltesers,


M and Minstrels packs are to shrink by 15%


We want to know - do you prefer higher prices or smaller packs?


Let us know, use the hashtag BBCBizLive.


Get in touch. I'm sure you have a view.


On Wednesday, Theresa May triggers Article 50,


and the UK will start two years of Brexit negotiations


So just how is Britain's economy doing - and have any


of the predictions of doom and gloom come to pass?


The UK economy grew by more than previously reported


The value of goods and services produced in the UK -


or Gross Domestic Product - was up by 0.7% - from 0.6% -


according to the Office for National Statistics.


The pound fell sharply after the Brexit vote,


and has since been trading around 15% lower compared to the dollar


The weaker pound has helped exporters and


the tourism industry - but it's hit


The FTSE 100 has risen 16% since the eve


But the weak pound could be helping: big companies' profits are often


international and calculated in dollars - and they automatically


rise when converted back into sterling.


After the referendum, the Bank of England boosted


the economy by cutting interest rates from 0.5% to 0.25% last


August - taking UK rates to a new record low.


The unemployment rate has been falling and is currently


around 1.6 million people - the lowest jobless rate since 2005.


Meanwhile, in the three months to January, wages grew by 2.3%,


compared with the same period a year earlier.


He's the Europe associate at the political risk


Salary running to the details and it appears from an economic perspective


the UK is approaching these negotiations from a sound financial


footing -- salary running. Yes, the public deficit is still quite large,


but certainly I think it has impressed most observers and


surprised them in how it has performed, talking about the UK


economy, the growth outlook is still quite good and investment is still


all right. Inflation is above 2% target and hasn't quite gone crazy.


Overall the UK's economy is quite strong, but the question is whether


the investment outlook remains the same and over the next two years,


all the people that were interested in the UK for investing will be very


interested in the deal that we get with our European partners, our


biggest market, and the UK has been seen as a investing destination


because it was inside the single market, but what about when it is


outside? The first issue that you raise, the economy looks OK, but


critics will say it looks fine because nothing has yet changed.


This is the preamble, but triggering Article 50 is when it really starts.


Absolutely. The uncertainty is key, but these two years, and you have to


look at how it works, Article 50, and for the past eight months the UK


has defined the timing so we know that we will be leaving at some


point but the Prime Minister has been able to decide when she


triggers Article 50 and what she says before and what the objectives


are that she sets out and what business leaders she is able to


reassure, but when we hand over power to Brussels to negotiate we


will have less control and I think that will be quite soon, within 48


hours the European institutions will publish a timeline of what will


happen and it will be quite clear that we won't be negotiating our


economic relationship first. That will come second, and that is not


entirely reassuring to investors. What deal will we get? The question


is always whether this is in the interests of the European Union to


offer us a good deal, because that might set the ball rolling on other


countries wanting to leave, but they won't want to penalise us because we


are a trading partner, and working up the balance will be the toughest


bit. Absolutely, the UK is seen as a very important economic partner and


some countries want the relationship to remain positive. However they


will want to maintain the internal logic of how the EU works and that


will mean the UK can have favourable access terms as it does currently,


which thinks, you can imagine a relationship without Harris, but on


nontariff barriers including regulation and services markets it


will look much more complex than it does -- you can imagine a


relationship without tariffs. Getting all this done in two years


will be very difficult. I imagine we will talk about this again. Thanks


for joining us. The London mayor has been talking


this morning and he said it would be a major mistake if the EU tries to


punish the UK for Brexit. He is calling on the EU to rise above the


temptation to install fear during the Brexit negotiations. Now to some


other news. Tesco has struck a Deferred


Prosecution Agreement with the Serious Fraud Office


following its investigation into the supermarket's overstatement


of profits in 2014 by ?263m. The inflated profit figure


was the result of Tesco bringing Tesco has also agreed


with the Financial Conduct Authority to set up a compensation scheme


for shareholders that It has apologised for the errors and


investors will receive compensation of just over $100 million.


The billionaire Elon Musk is launching a company that he hopes


will merge computers with the human brain.


The creation of Neuralink Corp will pursue what Musk calls


"neural lace" technology - implanting tiny brain


electrodes that might one day enable the uploading


The EU's health commissioner says Brazil needs to restore trust


in its meat exports after being hit by a scandal over rotten produce.


A number of countries have placed tough restrictions


The country has seen its daily meat exports plunge by 19%.


It comes investigations by the Brazilian authorities found


rotten produce and suspected corruption across the industry.


The world's largest carrier - American Airlines -


is set to buy a $200m stake in Chinese Southern in a bid


It's being described as a stretgic partnership -


as China is one of the world's fastest-growing aviation markets.


The International Air Transport Association predicts that it


will surpass the US to become the biggest in terms


Our Correspondent, Robin Brant, is in Shanghai.


The issue, it's a huge market and one that the American Airlines want


to be involved with. Everyone would like a slice of the travel market,


especially here, and American Airlines relatively late to the


party because United already have a tie-up with China and Delta as well.


American Airlines, the latest to the party, but they are the biggest


airline in terms of scheduled passengers. China Southern are the


biggest in China in terms of flights and passengers they carry, and that


is the marriage we are getting. This is part of the broad strategy led by


the government in Beijing which owns majority stakes in these three big


domestic airlines to change the ownership structure and encourage


foreign investors. And tried to bring in a foreign management


culture, although this is a 2.5% stake and I don't think we will


a big change in terms of the way a big change in terms of the way


that China Southern is run. In terms of the service as a passenger on


these airlines, I have to say they get you there on time, but expect


big delays if you are going to China, often with no apologies, and


maybe there is room for improvement and maybe American will do something


there. I'm sure they are listing to you and writing notes. Thanks for


joining us. -- listening to you. He sounded like a frustrated traveller.


And now to the markets. The yen has not moved that much versus the


dollar but the markets have stabilised after the wobble that


started late Friday when President Trump did not get through his


changes to Obamacare. That is what caused a wobble at the beginning of


the week but we are back to steady as she goes. Now to Europe, we have


the mining stocks pushing up the FTSE 100, they are the big winners


so far. We will talk in more detail about what is going on. We can now


go to Wall Street first. Donald Trump is keen to make good on his


promise to undo barrack Balmer's climate push, especially the clean


power plant -- Barack Obama. This is where a significant amount of


America's carbon dioxide emissions come from, and the role was a


frequent target of Republicans who said it was a job killer and called


it government overreach and so no surprise it is on the chopping block


and the president is expected to sign an executive order which will


make it easier for companies to produce energy in the United States


by reversing many of the regulations which were tied to climate change


which were set by Barack Obama. There will also be a moratorium on


new leases for coal which is mine from federal and lands, but the


steps are not likely to bring back the coal industry which was one of


the campaign promises of Donald Trump, and there are the global


implications for top the clean power plant was an important part of the


US meeting the goals set out under the Paris climate agreement but this


executive order signals that fighting climate change is not a


priority for this administration. Thanks for joining us.


Joining us is James Bevan, Chief Investment Officer at CCLA


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


the storm. It will be a very slow burner. We have to spend the next


two years at least getting up to speed with what will happen. The


reality is we will not have concluded the negotiations and there


will be plenty of uncertainties. In terms of the market, they feel more


stable today? Yes, they do. Everyone anticipated that Donald Trump 's


back challenges on Obamacare were a one-off and at some stage it will


file, and there is a sense that he will deliver on tax cuts which is


what the recent rally has been about -- it will fail. We can have a look


at South Africa, it came across the wires that the finance minister had


been hauled back to South Africa, and a cabinet reshuffle is expected,


or that is the speculation. The Rand is falling. We know that the finance


minister and the Prime Minister do not get on and have got on for ages.


Whether or not the five -- finance minister has been called back to


learn about another shuffle or this is a power play and he has got to be


shown who is boss by the president, but the domestic uncertainties will


be bad news for the Rand when the South African economy is doing


rather better. The central bank is expected to cut rates very soon and


growth is Excel are rating -- is accelerating. James, thanks for


joining us. Many people getting in touch about their views on


chocolate, some saying they want the same size and others saying you have


got to cut down. We meet the firm that


sells second opinions And offers to guide


you through the confusing - You're with Business


Live from BBC News. Let's get more on the news that


Tesco has been hit with a fine of ?129 million by the Serious Fraud


Office. It follows a two-year investigation


into false accounting Theo Leggett has the details


in our business newsroom. Theo, let's start first of all with


this SFO investigation it goes back to 2014, a huge black hole in their


finances. Bring us up-to-date with what we know today? Well, the


Serious Fraud Office and Tesco have reached an agreement on a deferred


prosecution agreement. That means that Tesco has effectively been put


on probation. What did it do wrong? Well, back in August 2014 Tesco


published a trading statement. It later transpired that the profits in


the trading statement were substantially overstated. Initially


it was thought by ?250 million. That figure was later upped to ?326


million. So a serious overstatement of profits and it had to do with how


Tesco was booking money coming from its suppliers. On top of that


agreement to pay a penalty to the Serious Fraud Office, Tesco has


reached agreement with the Financial Conduct Authority to pay


compensation of ?85 million to shareholders. Why? Well, look at


this graph. In 2014 Tesco's share price was falling anyway, but this


is what we're interested in here this. Is when the trading statement


was published and this is just after all that bad news came through.


There was a serious drop in Tesco's share price so it has been told to


compensate shareholders and bond holders who were holding shares


during that period. So there you have it. A big deal for Tesco. Can


you tell us about Booker? Its intended purchase of this company


and some major shareholders are not happy and they're going public? This


is a major, major deal that Tesco wants to push through, a ?3.7


billion purchase of Booker. It owns the right to the budgeon and Premier


brands. Tesco thinks it can get into the food away from home market which


has more potential for growth than the supermarket business. One of its


group has said it is not happy. It thinks Tesco is paying too much and


that therefore, this deal offers poor shareholder value. Tesco


disagrees. It thinks it's a great deal.


Theo, thank you very much. Full details on the website.


We are keeping track of the big story of the week. Tomorrow, the UK


will formally ask to leave the European Union. London's mayor is


warning it would make a mistake fort bloc to try and punish the country.


We have been hearing from the London mayor, talking about the trade links


between the two. We have had a line out from Germany, from the German


Chambers of Commerce saying that Britain's departure from the EU


could hurt German firms business with the UK and investment. He says


will decline strongly in the long-term. That's the President of


Germany's Chamber of Commerce. We will get all sorts of reaction as we


approach the deadline tomorrow to trigger Article 50. Two years.


A quick look at how markets are faring.


A bit of calm. We'll enjoy it while it lasts. It could all take a long


time to play out so we will keep you across the changes.


President Trump's failed attempt to replace the affordable care act


in the US has put the cost of healthcare back in the spotlight.


The global cost of health care is forecast to hit a staggering


That's 10.5% of GDP - spent solely on health care.


So, is there a way to keep costs down?


Well, one way could be through early diagnosis and prevention to save


And one company says it is already doing that.


Alivia Swiss Health will assess your health problems,


devise treatment plans and connect patients to leading specialists.


It is like getting a second opinion with a highly skilled team.


All for an annual fee of around $1,000 a year.


Dr Vidar Arnulf is the co-founder and Chairman of Alivia Swiss Health


Welcome to the programme. We touched on how it works there. Talk us


through the process. How is it different to going to another doctor


and saying, "Look, this is the diagnosis I have been given from


this guy. Talk me through it." Talk me through the package. We give you


access to a number of specialists, we don't think there is only one


doctor who can know everything. We have a team of scientists, doctors,


internationally who will go through your individual file, assess it and


then come up with suggested treatment and diagnostic procedure


and verification of that diagnosis. The worst doctor out there is Dr


Google, the one you should always avoid because it will fill you with


fear, but the point actually there is so much information out there at


the moment to anyone that is able to do the search. Why do we need to pay


to you do that when we can do this ourselves? Well, I don't think you


can do that yourself. If you Google treatment for cancer you will get 28


million hits within 0.5 seconds and how do you... If you whittle it down


to the name of the particular contrast you have and don't just put


"Cancer" You will get a more defined search. There are ways of finding


out these things. It takes time. It takes time and you don't know the


quality of it. I usually compare second opinions with being sick just


like at war. It is the civilian population that is the victims of


all wars. The soldiers know what to do and have the information and have


the intelligence, they do better and I think when you're sick you're at


war with yourself and having somebody to come up with contingency


plans and give you knowledge and empower to make the right decisions


for you, that's an asset. Is this just for rich people? Looking at the


figures here. You have got 500 patients here paying ?800, that's


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


money, but it is an extra cost. It is a cost that people have got to


bear and how do you make money from that, 500 patients paying $1,000


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


It starts at ?800. It could be more. It could be less. But we have seen


we have changed lives. We have changed the destiny of people who


had given up op the health care systems and I think it is so


important for us to make that available for as many as possible


and that's why we are introducing this relatively reasonable pricing


for world experts to look into your case. All right. We are out of time


which is a real shame. So much more to discuss. But for now, thank you


very much, Dr Vidar Arnulf for come unwilling.


-- coming in. A new ?1 coin becomes legal tender


in the UK from today. It is being rolled out


across the country to tackle It has got more sides. Do you think


I can get a new career? As a hand model.


This is the first new ?1 coin to be introduced in more than 30 years


and will be the most secure of its kind in the world,


The first pound coin down the back of the sofa already!


We've done nearly 4,000 across the country.


It's made out of two different coloured metals.


So there's a nickle, a white coloured metal inner


In addition we've got a semi-hologram.


If you look at it in one direction, you'll see one image.


In the other direction, you'll see another imaage -


So this pound will buy you less chocolate because it is shrinking.


This is about Mars? I eat a lot of chocolate. What we have observed are


the costs for chocolate manufacturers have been going up


both because of the devaluation of the pound, but Mr Hammond's decision


that he should be taxing sugar it make us healthier and the chocolate


companies reckon it is there is a pricing point we're prepared to pay


and no more and guys we will give awe reduced amount of chocolate


rather than putting the price up. We saw it with Toblerone. It has been


going on for years. Easter eggs used to be big, fat chunky things and


they're getting thinner! What's your favourite? I like Maltesers. Or a


Swiss Lint egg. You're a chocolate snob? The texture of chocolate


really matters and that's good. James. Thank you. There has been a


tonne of responses to our question. If you want to see them all, search


the BBC Business Live hashtag on Twitter. A lot of people saying it


is for your health too. We will see you soon. Bye-bye.


Good morning. Things are changing on the weather front. High pressure is


slipping away towards the near Continent and this big low in the


North Atlantic is slowly taking


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