05/04/2017 BBC Business Live


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This is Business Live from BBC News with Sally Bundock


Britain s Prime Minister suggests freedom of movement could be


extended after Brexit as the European Parliament has


Live from London, that's our top story on Wednesday, 5th April.


This is the scene live in Strasbourg where politicians are laying out


what they see as the priorities for Brexit negotiations.


We will talk more about that in the programme.


Iceland's parliament considers making


it the law to pay men and women the same.


Employers who don't could face fines.


Attention is now turning to tomorrow s meeting


between President Xi and President Trump.


And we'll be live at London's City Hall where business


leaders from Europe's big cities are working out how to get


And as Iceland legislates to enforce equal pay -


we want to hear from you - what would you do to level


Welcome to the programme. Perhaps some transparency on what


people are actually paid. I'll just throw that one out there. Send us


your comments. It has been a week since


the United Kingdom finally gave the European Union


notice it wants to leave. The British Prime Minister Theresa


May has suggested freedom of movement of people between the UK


and the EU could be That's just one issue


the European Parliament is discussing and it matters


because it can veto any final agreement made between the UK


and the European Council. One of the other big issues they'll


be looking at is the size A figure in the region of $60


billion has been widely reported. At the moment the two sides


are bound by trade worth The future of that will be discussed


and the initial draft warns the UK against starting any trade


negotiations with other countries whilst it is


still a member of the EU. Britain s role as the world's


biggest exporter of financial services is also picked out


with a warning the UK shouldn't expect "privileged access"


to the EU's internal market. There is also a call for "legal


certainty" for companies. An estimated 300,000 UK firms


currently export to the EU. Two leading industry


regulators are also facing the prospect of being relocated


from their current London offices. They are the European Banking


Authority and the European Medicines Our correspondent Dan Johnson


is at the European Hello there, Dan. We have heard


about the red lines being laid down. Which issues, among those Sally was


just talking about are the most pressing, do you think? Well, the


European Parliament, MEPs appear to be all agreed that the main priority


is to guarantee the rights of EU citizens who live in the UK and


Brits who live in other parts of the EU. So sorting out what access they


will have to health care, benefits and pensions to, to education, they


want certainty for those people as soon as possiblement other issues up


for discussion today that they think need to be addressed quickly are the


bill, the accounts that have to be settled by Britain as it leaves the


EU and also the border situation in Ireland. Everyone agrees that that


needs to be sorted out as simply and as smoothly as possible, but the


debate has got off to a tetchy start. Some of the MEPs who have


spoken have been jeered and booed by the Ukip MEPs and the president had


to appeal for calm. He said he doesn't want the chamber to descend


into the atmosphere of a football stadium so perhaps an idea already


that the discussions are not going to run smoothly. There is going to


be really tough debate and some strong words have been spoken


already here this morning. What do you think will be made of Prime


Minister Theresa May's comments that it's looking as though perhaps three


movement of people between Britain and the European Union could be


extended during a so-called implementation phase? Yes, that's


interesting news. Two admissions from the Prime Minister this


morning. One, that there will likely be some sort of implementation phase


exist and also an admission that a exist and also an admission that a


new trade relationship between the EU and the UK couldn't be agreed


until after the UK actually leaves. Now, that is all in accord with what


MEPs have been suggesting. The draft resolution that they're debating


this morning calls for a transitional period of up to three


years for a new arrangement between the UK and the EU to play out. So it


sounds like the two sides are perhaps coming closer together on


that, but worth bearing in mind what the MEPs set down this morning, are


only advisory guidelines. It's the European Council, which is in effect


the heads of Government of the other 27 states across the EU, that will


actually have to sit down with the UK on the other side of the table


and hammer out the details. That won't start for a few weeks yet. OK,


Dan, thank you very much. And Brexit is also getting people


talking here in London. European business groups are meeting


at the Mayor's office City Hall to discuss how


they can work together. We'll speak to one of them live


later in the programme. Interesting to hear what he has to


say. That's coming up in ten minutes.


The US President has promised sweeping reforms to US banking


regulations that were introduced after the financial crisis.


Donald Trump has vowed to give a "haircut" to the Dodd-Frank rules


Iceland's parliament has presented a bill to enshrine in law equal pay


for women and men across the public and private sector.


If passed, the bill would require all employers with over 25 staff


to prove they offer equal pay to all employees.


The law would be a world first and would come


US anti-trust regulators have given preliminary approval to ChemChina's


$43 billion takeover of Swiss pesticide and seed giant, Syngenta.


However, the Federal Trade Commission ruled that it


would require ChemChina to sell off its business interests in three


chemical products to maintain competition in the market.


The takeover would mark the largest overseas takeover by a Chinese firm.


UK Chancellor Philip Hammond is on his final day


He's there with Mark Carney, Governor of Bank of England


Today's he has been meeting India's fintech community and the head


Tell us more about how it is going today. Well, we are here at a


company in Mumbai. The Chancellor visited this place a few minutes


ago. He just left five minutes ago. He interacted with different


start-ups, the start-ups are operating in the financial services


space, that's one area where this delegation is focussing a lot


because they have been trying to tell the Indian Government that


that's the area where UK and India can work closely. Later in the day


the Chancellor is also going to be meet the Governor of India's Central


Bank. He is addressing a conference where business leaders from both


sides will assemble. They are going to talk about financial services. So


clearly, lots going on, but the main thing is that once post Brexit, when


these two countries start negotiating a new deal, that's when


the pressing issues will come in front and that's something which


delegates here say will take sometime to emerge. This trip so far


has been going, let's see how the financial services conference goes.


Thank you very much. So we will watch that space. Prime Minister


Theresa May is in Saudi Arabia. Her agenda is trade to a descre,


security and defence is also on there, but it would seem there is a


lot going on this week, that's for sure.


Looking at markets across Asia, that's last night's close. These


have edged higher in Asia. Hong Kong opened today, and China and Taiwan,


they were closed yesterday for a public holiday. On the Dow, now, the


biggest car company by market valuation on stock markets is Tesla.


So the Tesla shares edged up again on Tuesday. So it is overtaken


General Motors, it is valued more than General Motors and Ford. Let's


look at Europe and how they are doing now. Flat. No major moves in


either direction. Interesting we will be looking ahead to President


Xi and President Trump meeting on Thursday. Let's discuss this in a


few minutes time. Also on the agenda in the States the construction


companies who are hoping to get the contract to build the controversial


wall that divides the United States and Mexico. So the deadline has come


and gone. Michelle Fleury is in


New York with more details. Donald Trump's proposal to build


a border wall with Mexico has drawn interest from hundreds of companies


around the country. A US official told the BBC


the finalists will be picked in the next few months and will be


asked to build a prototype wall Now, some of the ideas


are unconventional. One Miami firm is proposing


a sustainable structure built out of recycled shipping containers,


but according to some US media reports, many bigger companies


are actually steering clear Building a wall was a cornerstone


of Trump's presidential campaign, but it was also one of his most


controversial policies and the political challenges


may prove greater than It's not yet clear who


will pay for the wall. The deadline to submit bids came


as news emerged that illegal crossings from Mexico have fallen


67% under Donald Trump. Joining us is Kathleen Brooks,


research director for City Index. Hi there. Kathleen. Good morning. We


talked about the red lines being drawn as far as Europe is concerned,


but what about the red lines between China and the US? It emerged today


more of the position that the US is likely to take when President Trump


and President Xi meet? It may not be considered particularly friendly.


There is an article written by Trump's secretary of Commerce in the


FT about trade and how trump's harsh trade negotiation and renegotiation


if you like is, you know, really targeting China and those countries


with big surplusesment he went on to say that, you know, the US has the


world's largest trade deficit. People say that's good, but the


countries with the surpluses they have seen their economies expand.


That's a direct rirches to China. So this isn't necessarily going to be


the easiest summit. There is some talk that they could label or the US


could label China a currency manipulator, not that there is much


evidence to support that. That's something he said he would do on day


one in office. He said he would slap tariffs on goods coming into the


United States from China. Hefty ones. But in terms of the financial


markets, to what extent are they watching this discussion tomorrow


because it is about the geopolitics and North Korea in a major way? What


we have seen actually, we had this massive Trump rally from when Trump


came into power. That slowed down and the gains were slowest since


Trump came into power. If you add this, this is the first real kind of


major summit that he has held, I think stock markets will be watching


it really, really closely. They are moving on the back of politics, on


the back of a slip of the tongue from Donald Trump. We have seen


share prices Or a tweet? Or a tweet. If it comes out that America and


China are in a very tense position and maybe there is not going to be


any breakthrough with North Korea, that could spike volatility which is


really, really close to historical lows and we could see a harder time


for the markets going forward. Kathleen, many thanks. You will be


coming back to look through the business stories in the papers


including the story about how Iceland is bringing in a law to...


There is a vote on it. Financial services are set


to be one of the biggest priorities for Britain


in the forthcoming negotiations. Later in the programme,


we'll speak to a business leader representing the German


financial capital, Frankfurt. You're with Business


Live from BBC News. MPs are calling for more action


by British businesses on corporate governance


and executive pay. The report from the Business Energy


and Industrial Strategy Committee comes in the aftermath


of the Sports Direct and BHS inquiries and calls for companies


to do more to regain trust. Iain Wright MP,


chairs the committee. Thank you very much for coming on


the programme. To what extent were you disappointed by Theresa May


dropping proposals for employees on company boards? Do you think that


would have made a difference? When Theresa May came into office, she


talked some really strong words about corporate governance and how


there was a disconnect between business and society and she was


right, but by the time the corporate governance Green Paper came out


before Christmas, those proposals had been watered down considerably.


Now, we don't believe on the Select Committee that a one-size-fits-all


approach to corporate governance is the right one, however, having that


employee engagement, having that long-term and strategic view that


workers can provide, we think are a positive step for corporate


governance and the idea that you could have workers on boards,


providing that strategic challenge, thinking about the long-term views


is a positive one. Is it enough to close the gap


between what some company bosses are earning and those who work for those


bosses? Because in some places the gap is enormous. And it is getting


wider. I think I mentioned about a disconnect between business and


society. The ordinary man and women in the street will have seen that


restraint, stagnant wages for a decade and a constant ratcheting up


of executive pay. They will not have seen a commensurate rise in company


performance. So that link between pay and performance at the top of


companies seems to be broken. It is far too complex, it is difficult to


keep track of and therefore we are proposing in the Select Committee


report to simplify it, and the long-term incentive plan should be


abolished as soon as possible. Let me bring in another story this


morning. That of an end to the Bovis buyout bed. -- buyout bid. Bovis


have appointed the former Telford Tripos as their Chief Executive. --


Gallifrey at Try boss. Minister Theresa May has suggested


freedom of movement of people between the UK and the EU could be


extended after Brexit as the European Parliament lays out


what it sees as the priorities. That is happening in Strasbourg as


we speak. A quick look at how


markets are faring. The FTSE 100 is on the up, as you


can see. Pretty positive in Frankfurt. The CAC 40 is treading


water in Paris. There is quite a lot of uncertainty on the global market


still surrounding the meeting between Donald Trump and the Chinese


premier. Working out what the future trading relationship will be between


the US and China and finding out how that will affect the rest of the


world. You may be one of these people that


subscribers to a music service like Amazon Prime or Apple music. But


would you consider subscribing to a garden?


Our North America technology reporter Dave Lee mucked


in with a new idea starting up in California's famed wine country.


For 85-year-old Joe Allen, tending a vegetable patch is work that she can


no longer manage yourself. But she is now a customer of a new start-up


offering gardening undermanned. You know, I am old so I cannot do what I


used to do. And it is nice. They have such a variety. I like it. The


company provides this pair of tanks for a monthly fee of just over $200.


That includes the soil and plants needed due the year. It also


includes the help of the company who will come and tend the garden as and


when it is needed. We have a check list that our team goes through, and


we make sure that every plant has the proper nutrition but is also not


getting eaten by pests. And if it is, we get it replaced as soon as


possible, by taking whatever steps are appropriate. They say gardening


is a great way to relieve stress but you are taking away the manual part


of that. We're not taking that away. It is still their garden, it is


still in their yard. We're taking away the bugs, we're picking off


bugs, we're doing some of the nitty-gritty stuff. The company


hopes that as it expands, that a key work will be carried out by teams of


gardeners across the entire country. Those gardeners will be able to turn


to the company's mobile app for advice. This is where people can


take pictures of the beds so that the people servicing the beds can


take pictures of the plans and sent it back to us at corporate. We


review those and make suggestions or take steps to correct that. This is


not really affordable to most people just yet but if they can scale the


idea, it could mean more of us could start growing vegetables in our own


gardens. Dave Lee, BBC News, in California's Wine country.


I don't know if Dave has green fingers or not. I know he has a dog.


He tweets about his dog. You a gardening person? Occasionally, an


occasional gardener. Maybe on a Sunday afternoon, once every few


months. We were going to ask you today what apps you would like to


get rid of some of the regular household chores. I think that will


not cover it for me. It is the hoovering, the washing, the


BHP Billiton, listed in London and else is out there.


BHP Billiton, listed in London and Sydney, has declared a force measure


for its core products because of the damage wrought by Cyclone Debbie


which caused chaos last week across many parts of Australia. A force


majeure means that a buyer cannot fulfil its responsibilities,


typically after a natural disaster. typically after a natural disaster.


BHP Billiton has come out with that information today. Over to Thailand


in our series looking at the property industry. The real estate


prices there keep going up. Just last month, a luxurious condo unit


was sold at a record price of $19 million in central Bangkok. So what


is driving this property market? Jonathan Head has been finding out.


Once again, Bangkok is in the grip of a property boom, much of that


happening along new railway lines being built out into the suburbs.


Apartment blocks are rising along these routes. Aimed especially at


first-time buyers. But experienced property dealers steer clear of the


riskier, low-end market. He is focusing on luxury condominiums like


this project in central Bangkok. Here, demand is so high that he can


buy a small apartment and resell it almost immediately at a substantial


profit. People in the low-end, they do not have much money and the bank


does not give mortgages. So that is the problem. At the moment, rich


people still have money. They can buy anything they want. If you buy a


high-end property, people do not use rationale much because they have


money. He showed me another project which has been heavily marketed


overseas. Foreign, mainly Asian overseas. Foreign, mainly Asian


buyers account for nearly half of the purchases here. But is buying


property is a good long-term investment? Rent here is generally


low, but only if you believe the property price will rise. That is


far from certain. We think that the average will increase on an annual


basis, for a meat market high-end condo in Bangkok, just shy of 5%. So


if your loan is 4%, that just basically wipes out any return you


might make. So is all this construction is a sign of


dangerously irrational exuberance? Unlike 20 years ago, thyme banks are


being more cautious about their lending. Some projects will fail but


most will not. And there are not many people in Thailand are worrying


about another big crash. Jonathan Head, BBC News, Bangkok.


We mention that Philip Hammond is in Mumbai, schmoozing. We have Theresa


May in Saudi Arabia as well and the Parliament in Strasbourg, the


European Parliament discussing Brexit as we speak. And City Hall in


London, we have the London Chamber of Commerce hosting an event where


they have invited European business leaders from across Europe to


discuss Brexit and how to work together across Europe. We were


talking to -- hoping to talk to the president of the frank Frankfurt's


chamber of commerce but technical reasons mean we cannot so apologies.


But luckily, Kathleen Brooks is here in the studio to talk about the


papers. We want to focus on the story about this equal pay


proposition in Iceland. It is really at the forefront of equal pay and


equal rights. It seems like this could be a world first. Definitely.


Iceland already has the lowest gender pay gap according to the


consumer prices index. It is not just about financial equality and


pay equality but political equality will come into it. Also, Iceland's


economy is going great guns, expanding by 7% in the first


quarter. These type of things seem to happen when the economy is doing


well so will the same thing happen in the UK? No, for many reasons. To


be fair to Iceland, the economy was on the verge of collapse at the end


of the financial crisis and yet it has always pushed this agenda hard.


I was talking to the head of air chambers of commerce a few years ago


about this issue and he said the business leaders are really on board


when it comes to gender equality. They really are. When the economy is


doing well, like it is in Iceland, that is when bills like this will go


to Parliament and get past. Let's go to the tweets. Owen has said that he


only thinks equal pay will come about we extend paternity leave to


six months. Unless there are equal rights for men as well within the


workplace, we are not necessarily going to get equal pay. I think that


is right, but I do not think why women should be penalised because


they are doing what some people would consider a good thing for


society, by taking a year out and looking after their child. I do very


much. It is a huge topic of debate and busily we cannot discuss it all


now. That is all from Business Life. Good morning. If you were up early


enough you would have noticed the chill in the air. A touch of frost


in southern parts of the UK this morning. The payoff was a lovely


sunrise. This was a weather watcher earlier. Please continue to send


those in. The


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