04/04/2017 BBC Business Live


04/04/2017

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This is Business Live from BBC News, with Susannah Streeter

:00:00.:00:00.

Gateway to India - Britain's Chancellor looks

:00:00.:00:12.

to the sub-continent for new trade ties in a post-Brexit world.

:00:13.:00:15.

Live from London, that's our top story on Tuesday, 4 April.

:00:16.:00:31.

As the UK leaves the European Union, can it get a boost helping India's

:00:32.:00:35.

development as one of the world's fastest growing economies?

:00:36.:00:40.

President Trump lands a blow to internet privacy,

:00:41.:00:45.

paving the way for internet providers to sell their

:00:46.:00:47.

We look of the financial markets in Europe.

:00:48.:00:58.

And we'll be getting the inside track on good manners.

:00:59.:01:01.

In a digital world how much can Debrett's help?

:01:02.:01:05.

We'll speak to the boss of revered etiqutte guide about how to behave

:01:06.:01:08.

And today, as the worlds most famous investor, Warren Buffett,

:01:09.:01:14.

is being used to sell cherry cola in China, we want to know,

:01:15.:01:17.

which celebrity endorsements have convinced you to make a purchase.

:01:18.:01:22.

We start in India, where the UK Finance Minister is leading

:01:23.:01:41.

It's a two-day visit, where Philip Hammond will stress

:01:42.:01:46.

that Britain is open for business and looking for new trade deals,

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as the UK negotiates its way out of the European Union.

:01:52.:02:00.

Both countries have had a relationship spanning many years.

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And let's talk you through the relationship.

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In 2014, the value of all the goods and services sold between India

:02:05.:02:08.

and the United Kingdom was about $24 billion.

:02:09.:02:10.

And it works in India's favour - they export a lot more goods

:02:11.:02:13.

Their top exports are clothing, footwear and medical items.

:02:14.:02:23.

What are the countries hoping to gain in the future?

:02:24.:02:27.

India is looking to raise more than $1 trillion for infrastructure

:02:28.:02:29.

over the next decade, and the UK hopes it can

:02:30.:02:32.

benefit from that, given its position as the world's top

:02:33.:02:34.

In return, India will be looking for greater freedom of movement

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for its citizens who want to work and study in the UK.

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Nice to see you again. Philip Hammond and Mark Carney, they are

:02:45.:03:06.

trying to lay foundations for any future trade deals. But many argue

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that some would see a future trade relationship as fairly slim for

:03:12.:03:17.

various reasons? Absolutely. There are many sticking points between the

:03:18.:03:23.

countries. Many are looking at the two countries as natural partners

:03:24.:03:27.

given the historic relationship, as well as common ground in terms of

:03:28.:03:32.

business. English is a common language. A lot of Indian companies

:03:33.:03:38.

naturally go to the UK as a senator for the rest of Europe to read. That

:03:39.:03:45.

is likely to change. -- centre. The Visa is a big issue, especially for

:03:46.:03:50.

Indian students. One analyst said it almost seems as if the UK once

:03:51.:03:54.

Indian business but not Indians. That is a perception Mr Hammond will

:03:55.:03:59.

have to change. Consistently India has refused to lift restrictions on

:04:00.:04:04.

professional services like banking accounts, insurance. That is

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something the UK sees as its strong point and wants India to open up. It

:04:10.:04:14.

will be interesting if he can convince people that the UK can

:04:15.:04:20.

offer the services and India must open up. Real negotiations will only

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start after the Brexit processes over. In terms of the areas of

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business or the industries that will look to benefit, we have mentioned

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financial services. What other business leaders are keen to see

:04:34.:04:42.

this relationship drive? The UK is selling financial services as its

:04:43.:04:47.

strong point. Mr Hammond says, making India but to get it financed

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in the UK. -- make in India. Whichever sector in India is looking

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for more capital, the UK is selling itself as the point of finances. We

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have seen Massa la Bonds, a new class of debt instrument. The UK

:05:03.:05:07.

seems to be the primary target for Indian companies wanting these

:05:08.:05:12.

bonds. India needs about $1.5 trillion of infrastructure funding.

:05:13.:05:15.

That funding is likely to come more and more from products like these

:05:16.:05:23.

bonds. Mr Hammond is saying, we have innovative financial products. He

:05:24.:05:27.

wants more Indian companies to come to the UK for that. Thank you very

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much. We will keep you across how that trip goes. Some other news.

:05:35.:05:43.

President Trump has signed a highly controversial order that will roll

:05:44.:05:45.

back an Obama-era law restricting how internet

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service providers could use Americans' online data.

:05:48.:05:51.

The US House of Representatives and the Senate backed

:05:52.:05:54.

The bill was supposed to come into force in December,

:05:55.:05:59.

and would have prevented companies from selling information such

:06:00.:06:01.

as browsing history, location data, financial and medical details.

:06:02.:06:04.

South Africa's credit rating has been cut to junk status

:06:05.:06:07.

The agency said that political upheaval, including the recent

:06:08.:06:12.

sacking of Finance Minister Pravin Gordhan, was

:06:13.:06:14.

Another ratings agency, Moody's, said it was placing its South Africa

:06:15.:06:21.

rating, which is two notches above junk status,

:06:22.:06:24.

The news put more pressure on the rand, which was down

:06:25.:06:28.

You can check out our live page on the BBC website. This is a story

:06:29.:06:49.

that we have been covering. The fact the central bank in Australia kept

:06:50.:06:52.

interest rates on hold as expected today at 1.5%. Basically they are

:06:53.:06:57.

keeping a close eye on what happens in China. It is an important market

:06:58.:07:03.

for them. Also keeping an eye macron the property market, which has been

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buoyant and heart in Sydney and Melbourne. Lots more stories there.

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Another tough day on the markets for Toshiba.

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Is this to do with reports that the company may delay releasing its

:07:17.:07:31.

earnings report once again? Well, yes, partly. It is the second day in

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a row Toshiba shares have fallen. They fell 95% on Tuesday, mainly

:07:38.:07:42.

over concerns the technology company may need more financial support.

:07:43.:07:46.

This hasn't sparked by reports that save the company will meet creditors

:07:47.:07:53.

on Tuesday to ask them to accept shares in some of its businesses as

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collateral, presumably in exchange for them not calling in their loans.

:07:58.:08:01.

On Monday, shares went down after the company signalled it may miss a

:08:02.:08:05.

third deadline to release its results for the last quarter of

:08:06.:08:10.

2016. This was supposed to happen in February. The company has delayed

:08:11.:08:16.

formally reporting its earnings over problems at Westinghouse Electric,

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its US nuclear unit. Westinghouse has been hit and file for bankruptcy

:08:20.:08:29.

last week. Its annual loss could be a record 9.1 billion US dollars.

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Many thanks. The wider financial markets. Tokyo's benchmark fell to a

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ten week low. Pashey do in real difficulty, plunging almost 10% of

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its financial problems. There is a bank holiday in China. The markets

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were closed. This is what is happening in Europe. You can see

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markets pretty stable. The Dax in Frankfurt down very slightly. The

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CAC treading water. It comes after Wall Street closed slightly lower

:09:11.:09:16.

yesterday as March cars sales really disappointed investors. There was

:09:17.:09:20.

quite a lot of nervousness around the forthcoming meeting between

:09:21.:09:24.

President Trump and China's premiere.

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And Michelle Fleury has the details about what's ahead

:09:27.:09:28.

Donald Trump has already warned his meeting with the Chinese later will

:09:29.:09:36.

be very difficult. Just days ahead, the US president ordered officials

:09:37.:09:41.

to find solutions to America's trade deficit with China and other

:09:42.:09:48.

countries. With trade a key focus of the summit, all eyes will be on the

:09:49.:09:53.

latest US trade statistics due out this Tuesday. The figures for

:09:54.:09:56.

February will reveal the gap between what America sells to foreigners and

:09:57.:10:01.

what US customers buy from overseas. They are expected to show the trade

:10:02.:10:07.

deficit narrowed to around $46 billion from 48.5 billion in

:10:08.:10:11.

January. Also, keep an eye Mark Wright for Tesla after the company

:10:12.:10:14.

surprised investors were better than expected sales this year. It has

:10:15.:10:24.

become the second-biggest US car-maker by market capitalisation

:10:25.:10:27.

after only General Motors. That is Michelle.

:10:28.:10:27.

Joining us is Richard Fletcher, business editor at The Times.

:10:28.:10:30.

Good morning. She has said's up nicely. Tesla, I find that

:10:31.:10:43.

phenomenal, it's valuation, given the fact it has not made any money

:10:44.:10:48.

yet. The number of cars it has made is going up, but it is nothing in

:10:49.:10:52.

comparison to the millions ford makes? It is still tiny. Ford makes

:10:53.:10:59.

88 times the number of vehicles as Tesla. In terms of revenues, Ford's

:11:00.:11:09.

revenues are 20 times Tesla's. We were trying to do a graphic

:11:10.:11:13.

yesterday to illustrate the difference. It is hard to do profit

:11:14.:11:16.

because you are trying to compare a loss with a profit. It is amazing

:11:17.:11:22.

but it is about the market being really excited about electric cars.

:11:23.:11:29.

The problem is, Elon musk asked to ramp it up. There is excitement

:11:30.:11:36.

surrounding electric vehicles. The markets believe this is a game

:11:37.:11:40.

changer. Can they deliver? The markets expect them to ramp up

:11:41.:11:44.

production and deliver a large number of vehicles. Companies like

:11:45.:11:49.

Tesla, that are highly rated, if they don't deliver, UDCA big

:11:50.:11:54.

sell-off in their shares. We have to talk about Warren Buffet. He is very

:11:55.:12:06.

well known as being perhaps one of the world's most successful

:12:07.:12:12.

investors. He has had Coca-Cola in his portfolio since the beginning.

:12:13.:12:18.

He has a 9% stake. He is the biggest investor. I wonder if it is a slight

:12:19.:12:22.

marketing trick. Basically what they have done is they have put Cherry

:12:23.:12:28.

Coca-Cola on the cans in China. They have done a limited number of cans

:12:29.:12:32.

with Warren Buffet's face on it. It is intriguing. He is well-known

:12:33.:12:45.

China. The annual meeting is live streamed and translated into

:12:46.:12:48.

Mandarin. He does have a following. Is that because there are some any

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investors who are keen to get a foothold the financial market and

:12:53.:12:57.

earn their own fortune? Absolutely. He has got a following all over the

:12:58.:13:02.

world. He is popular here and in the US. He is a fan of Coke. He drinks

:13:03.:13:13.

?5 a day, apparently. Warren Buffet says he eats like a six-year-old.

:13:14.:13:16.

That is not what I would give my six-year-old!

:13:17.:13:24.

He has a five day diet. Have you ever been persuaded to buy something

:13:25.:13:29.

because of a celebrity endorsement? I haven't. It would probably put me

:13:30.:13:34.

off rather than encourage me. A few viewers have been in touch. Rob says

:13:35.:13:40.

only once has he been persuaded. Pierce Brosnan promoted an electric

:13:41.:13:44.

shaver when he was James Bond, and he says it is still as good today as

:13:45.:13:49.

it was then, a bit like himself. Robert says Margaret Thatcher

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convinced her -- him to buy his own counsel has!

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And shares in British Telecom and British Gas. I wouldn't have

:13:59.:14:00.

expected him to come up! We'll speak to the boss of Britain's

:14:01.:14:02.

esteemed etiquette guide, Debrett's, on how manners matter

:14:03.:14:12.

in the digital world. What annoys you about business

:14:13.:14:15.

manners? You're with Business

:14:16.:14:19.

Live from BBC News. Online fashion retailer Asos has

:14:20.:14:26.

reported another strong six months, The retailer had a good christmas,

:14:27.:14:30.

and saw revenue growth of 38% in the six months to

:14:31.:14:35.

the end of February. I imagine many retailers hearing

:14:36.:14:43.

that news will be envious. Honor Strachan is a retail analyst

:14:44.:14:46.

for Global Data Retail. How good are the numbers? Talk us

:14:47.:14:56.

through them. They're impressive given the trading environment at the

:14:57.:14:59.

moment. They have had an incredible Christmas. The full half is up 37%,

:15:00.:15:06.

38% with the UK performing and up 18%. It is outperforming the market

:15:07.:15:13.

and its competitors. The swing to digital is really continuing and it

:15:14.:15:19.

is making it harder for the bricks and mortar stores to compete? Asos

:15:20.:15:25.

has got its model correct and it understands its core audience and

:15:26.:15:28.

shopping habits. What we are starting to see is those channels

:15:29.:15:33.

work together and retailers really understand how online should

:15:34.:15:36.

compliment stores like we have seen with John Lewis reporting good

:15:37.:15:40.

results and that's because online and stores are working together. It

:15:41.:15:44.

is all to do with customer experience with those bricks and

:15:45.:15:49.

mortar stores, that's the only which you will get people in? It is about

:15:50.:15:57.

providing them with an joinl shopping experience and encouraging

:15:58.:16:03.

them to prows the ranges. 58% of orders is placed on mobile devices?

:16:04.:16:09.

It is a popular channel with 16 to 35-year-olds switching to mobile.

:16:10.:16:12.

They are shopping on the move and browsing on the move and using

:16:13.:16:15.

social media to share pictures and to share items they might want to

:16:16.:16:19.

buy. Mobile really is the way forward and retailers are starting

:16:20.:16:23.

to really invest in those platforms and make sure they are optimised for

:16:24.:16:34.

mobile shopping. Thank you. Topps Tiles, they saw their sales

:16:35.:16:38.

splip. They're the flooring retailer, of course. They saw a 2%

:16:39.:16:43.

drop in like for like revenues to the end of March. The Chief

:16:44.:16:49.

Executive is saying that market conditions have become tougher, but

:16:50.:16:52.

the business has responded well to control its costs. Lots more on our

:16:53.:16:55.

website as ever. Take a look. You're watching Business Live.

:16:56.:17:06.

Our top story: The UK Finance Minister

:17:07.:17:09.

Philip Hammond is leading He's tweeted that the importance

:17:10.:17:11.

of trade between the two countries will only grow after the UK leaves

:17:12.:17:16.

the European Union. A quick look at how

:17:17.:17:24.

markets are faring. One of the big winners is BP. It has

:17:25.:17:36.

been upgraded by an investment bank to a buy rating and people are

:17:37.:17:41.

buying it. They are being obedient and buying BP's shares today.

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They're up 2%. Good etiquette in business has often

:17:44.:17:46.

been described as a critical skill which can boost your chances

:17:47.:17:49.

of success, but in an increasingly online world where media and digital

:17:50.:17:53.

disruptors are breaking SOo is having impeccable

:17:54.:17:58.

manners really In a survey of more than 1,000

:17:59.:18:04.

people in the US last year, almost three-quarters thought

:18:05.:18:09.

manners and behaviour In an online poll, US school

:18:10.:18:10.

and university students point the blame firmly at social

:18:11.:18:14.

media saying technology So the etiquette firm Debrett's has

:18:15.:18:16.

been around for almost 250 years. It's trying to keep up with the way

:18:17.:18:25.

technology is changing business manners and has even released

:18:26.:18:28.

an etiquette guide for using Airbnb. Renee Kuo is managing

:18:29.:18:35.

director at Debrett's. Welcome to Business Live. Thank you

:18:36.:18:47.

very much. You've brought in a few examples of these new guides that

:18:48.:18:54.

you can get hold of and this one is called Guide To British Style.

:18:55.:18:58.

You've got it in Chinese and Arabic as well. Now, that really reflects

:18:59.:19:03.

the people that go to Bicester Village which is known as Terminal 6

:19:04.:19:09.

in the UK. Bicester Village is a luxury shopping destination and one

:19:10.:19:14.

of the UK's most popular tourist destinations. But why do you need a

:19:15.:19:20.

guide? You go in the shop, show them the money and come away with the

:19:21.:19:25.

designer goods, isn't that it? The guide is for two reasons, there are

:19:26.:19:29.

traditional season events which are a main attraction for global

:19:30.:19:32.

visitors and they don't know the dress codes for those events. There

:19:33.:19:36.

might be a lot of British people who might not know the dress code. You

:19:37.:19:40.

shouldn't wear bright colours in the countryside. We wouldn't be any good

:19:41.:19:44.

there! Is that what it says in your guide?

:19:45.:19:49.

There might be some shooting going on on the weekend as well! You've

:19:50.:19:59.

updated your guide to reflect the digital world, haven't you? Yes. Why

:20:00.:20:05.

do you need an Airbnb guide? An etiquette to home sharing is very

:20:06.:20:09.

important. You are going to stay at somebody's home, especially if they

:20:10.:20:12.

are from a different culture, do you take off your shoes, if you've cut

:20:13.:20:16.

your finger, do you rummage through the medicine cabinet to find the

:20:17.:20:20.

plaster? There have to be rules it make people feel comfortable and

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confident in unfamiliar, business and social and cultural situations.

:20:25.:20:29.

As well, for people who are wheeling and dealing like Philip Hammond

:20:30.:20:34.

today, Mark Carney in India, it is extremely critical they get it right

:20:35.:20:39.

in terms of etiquette. Absolutely. For many of us who travel over the

:20:40.:20:43.

world, culture, there are huge differences just in how you greet

:20:44.:20:47.

somebody physically and verbally? It is not just from a social etiquette

:20:48.:20:52.

prospective. You don't want to be representing your company and lose

:20:53.:20:55.

the deal because you made a kind of cultural gaffe. So, for example, if

:20:56.:20:59.

you're a western executive and gu to China and you take a business card

:21:00.:21:03.

and you're relaxed with it as we are in the western world and you might

:21:04.:21:08.

write somebody's mobile number on the back, you've insulted that

:21:09.:21:13.

person. There is a respect and a an etiquette and protocol to all forms

:21:14.:21:17.

of business and that's from meeting and greeting somebody to accepting a

:21:18.:21:20.

business card to the hierarchy of a business meeting. Are you reflecting

:21:21.:21:25.

the use of Twitter for example in social correspondence in your latest

:21:26.:21:31.

guides? We have a guide to etiquette. It's so funny to think

:21:32.:21:35.

that technology is connecting us more and more and yet interpersonal

:21:36.:21:43.

skills are diminishing and there was a study by Harvard, Stanford that

:21:44.:21:49.

shows that job success is 85% due to social and soft skills and only 15%

:21:50.:21:55.

due to technical skills. The Wall Street Journal found that recruiters

:21:56.:21:58.

couldn't find enough people with interpersonal skills. That's a

:21:59.:22:02.

result of people feeling more comfortable hiding behind a screen

:22:03.:22:07.

or hiding under their head phones these days. It's fascinating. We've

:22:08.:22:11.

got to leave it there. I'm calling time on the interview. It has been

:22:12.:22:16.

great to have you in. Thanks, it has been a pleasure.

:22:17.:22:20.

ABTA is warning there is no fall Back option for airlines if the UK

:22:21.:22:27.

is unable to secure an aviation agreement during the Brexit

:22:28.:22:32.

negotiations. Richard Westcott has been looking at the pit falls that

:22:33.:22:38.

Brexit could create for the business of aviation.

:22:39.:22:42.

Lots of businesses want to get to the front of the queue because they

:22:43.:22:45.

want to make sure that it's their Brexit agreement that's sorted out

:22:46.:22:49.

first. And today, it's the travel industry's turn to wade in. At the

:22:50.:22:57.

moment, any EU airline can fly anywhere in Europe and that's why we

:22:58.:23:00.

get such cheep flights, but that deal runs out in two years when we

:23:01.:23:05.

leave the EU, if they don't replace it, there is a slim chance that

:23:06.:23:09.

European flights will have to stop for a while.

:23:10.:23:13.

I know that sounds a bit dramatic, but it is not me saying t it is the

:23:14.:23:18.

boss of Europe's biggest airline, Michael O'Leary at Ryanair. But

:23:19.:23:23.

other airlines don't share his apocalyptic view. EasyJet is

:23:24.:23:26.

Britain's biggest airline and they tell me they are very confident a

:23:27.:23:31.

new agreement will be reached soon. And that is for one simple reason -

:23:32.:23:36.

because both sides will lose too much money without it. Because all

:23:37.:23:41.

of those tourists and all of those business people, it's obvious, but

:23:42.:23:45.

they have to fly. The airlines have good reason to want a quick deal.

:23:46.:23:49.

They plan their schedules a year-and-a-half ahead. So, they need

:23:50.:23:52.

to be able to reassure their customers that when they book their

:23:53.:23:57.

holiday in 2019, their plane will definitely be able to take off.

:23:58.:24:08.

We were having a giggle about our own etiquette faux pass!

:24:09.:24:15.

We have got it talk about this story which has serious ramifications,

:24:16.:24:24.

President Trump, we mentioned mentioned him in the show and he's

:24:25.:24:31.

creeping in. Explain what happened? People when it comes to Trump focus

:24:32.:24:35.

on the wall, trade polls why and tax policy, but he is doing a lot of

:24:36.:24:40.

things behind the scenes and this is about internet privacy. Google and

:24:41.:24:44.

Facebook take your data and use it to sell ads to people. This is about

:24:45.:24:48.

what cable companies and broadband companies can do with your data. In

:24:49.:24:52.

America they have been stopped from harvesting your data, they are not

:24:53.:24:55.

allowed to do what Google and Facebook do. Trump has signed the

:24:56.:25:00.

Obama law out of the blocks, now they can take your data. It was

:25:01.:25:11.

chftion when they started doing it. You can choose not to use Google for

:25:12.:25:17.

Facebook, but you can't choose not to use a broadband company. All the

:25:18.:25:21.

companies are encroaching each other's territory? Where is the

:25:22.:25:26.

distinction between internet service provider and Google and Facebook?

:25:27.:25:32.

You could avoid Google if you wanted to, but do need to get your internet

:25:33.:25:38.

connection from somewhere. Justin Trudeau the leader of Canada, the

:25:39.:25:45.

Prime Minister there, he is not pleased with Bombardier executive

:25:46.:25:48.

packages? It is a hot topic. Theresa May has got involved. In can darks

:25:49.:25:56.

Bombardier got into trouble a few years ago. It got bailed out by the

:25:57.:26:00.

Government and,000 they want to pay their executives more and the

:26:01.:26:03.

Government says no. Thank you, Dominic.

:26:04.:26:07.

Good morning. The pressure is still fairly high

:26:08.:26:13.

across the UK. There will be more cloud around for tomorrow today than

:26:14.:26:17.

we have seen in recent days, but not for all. For example, here this East

:26:18.:26:18.

Yorkshire this

:26:19.:26:20.

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