19/04/2017 BBC Business Live


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


Plans for an early election in the UK look set to be approved


as the Prime Minister seeks to strengthen her hand


Live from London, that's our top story on Wednesday 19th of April.


The UK will go to the polls on June eighth and Brexit will be the key


We will have the details. The Chinese giant that will be sharing


its driverless car technology. Could it accelerate the sector? After a


busy day for the markets die jesting the news of the snap election, this


is how the numbers in Europe have open. We will have the details for


you, and why. We'll be crossing live


to Brussels to find out. What do you want to ask


about what the election means for Brexit Just use the hashtag


#BBCBizLive. Nine months after becoming


Prime Minister, Theresa May is throwing the dice and betting


on victory in a snap Today, MP's are expected to vote


in favour of the proposal, which Mrs May says will bring


greater certainty as Britain prepares to leave


the European Union. The pound was on a roller


coaster ride - it jumped - then swung to loss and back again


rising by as much as two point 7% against the US dollar -


some analysts believe markets are cheering the prospect


of a larger Conservative majority which would give LESS power


to hardline Eurosceptics The FTSE 100 - the leading stock


market in London - fell 1.8% - the biggest fall since early


November - but remember it's because a stronger pound


makes their dollar denominated But despite the ongoing uncertainty,


the International Monetary Fund has revised its forecasts for the UK


economy UP - predicting growth That would make it the second


fastest growing developed economy in the world,


behind only the United States. Business groups have used


yesterday's news to demand politicians make firm commitments


as part of any potential Will they get them? That's the big


question. In a moment, we'll hear


from the boss of WPP. which is the world's


biggest advertising agency. But first here's the Director


General of the Confederation of British Industry which represents


nearly 200,000 UK businesses. More uncertainty not welcomed by


business but in terms of the longer term benefits, I think many


businesses are seeing the opportunity for a government with a


stronger mandate bringing longer-term stability and also a


potential benefit in terms of timing, in that the implementation


period at the end of Article 50 was going to have a general election in


it and may now need to be run with a period of stability, so some good


news, a silver lining from this. I can't see that it will make the EU


negotiate less effectively, but on the other hand it gives her a much


stronger position. She is not susceptible to uprisings or results


from the hard Brexiteers. I think the reason why sterling strengthened


is that the markets are saying this probably means a softer Brexit or a


transition agreement, rather than, again falling over a cliff at the


end of negotiations. Mark Littlewood is Director General


of the UK's Institute of Economic Affairs a free-market


think tank based here in London. Just to say so the viewers are


aware, the think tank itself is neutral but you yourself are very


much pro-Brexit, that was your boat last year. Give us your take on the


timing of this snap election. I think the Prime Minister has done


the right thing. At the moment the Conservatives have a very thin


majority and in normal political cycles that would diminish further


in the next two or three years. So a snap election now is a chance for a


fresh mandate. If Theresa May Winscombe which the opinion polls


indicate she win, it will be her first public mandate, and if she


were to return with a majority of say 100 or more, then she is in a


stronger position around the negotiating table, not because it


affects what the EU does, but because she doesn't need to look


over her shoulder about what the House of Commons might do. If she


does win decisively, and that is her gamble


that what the opinion polls say, then she is in a stronger position


because she doesn't need to worry about domestic political concerns


when she is sitting face-to-face with the EU, having triggered


Article 50. Why the change of heart, because she was on record, no


general election, no general election, oh, we are having a


general election. Why the change of heart? I am not sure there has been


a change of heart. The nature of these things, if you are going to


call a snap election, it needs to be a bulk from the blue. The BBC only


had an hour 's notice that Theresa May was going to say something. But


she couldn't have done was to have the last six months of saying well,


I'm mulling it over, I think it is 50-50 whether I have an election,


some Bupa think I should, some think I should not. You need to be


decisive, and that means she has decisively had to change her mind on


this. So we know about that for sure but as Carolyn said and Sir Martin


said there are so much uncertainty still and that will continue in the


next few weeks and beyond. The pound rose strongly, many would argue, on


the view that those hardline Eurosceptics within the Conservative


Party will now be further die looted by this general election. Actually


that's something I presume you don't want because you actually want a


hard Brexit? I do want a hard Brexit, a clean Brexit, a decisive


Brexit, call it what you will. We don't know yet what will be in the


Conservative Party manifesto but I suspect Theresa May will end up


being a hard Brexiteer. I think the Conservative manifesto will commit


the UK to leaving the customs union and leaving the single market.


That's about as hard as Brexit gets. Will the public vote for that? We


don't know the answer, that is up to the public on June the 8th. If


opinion polls are about to be believed, and they have not got


everything right in recent years. But if they are to be believed,


Theresa May is on track for a landslide victory, and therefore the


lines in the thing will be the decisive part of the negotiation and


I think that the Conservatives and Theresa May will make to a pretty


hard Brexit and win a mandate for it. We shall watch this space. Thank


you for your time. We talk about the battle lines being drawn, six weeks


of interesting campaigning to come. Let's bring you up to date with the


news. The Dutch paint and chemicals giant


AkzoNobel has reported record profits for the first three months


of the year coming It's a welcome boost


for the company's chief executive as he tries to fend off a hostile


takeover from US rival PPG. US President Donald Trump has


ordered a review of a temporary visa programme used to place foreign


workers in high-skilled US jobs. Technology firms are amongst those


most reliant on the H1-B scheme which admits 85,000 people a year


to the US. Mr Trump also told government


agencies to enforce existing rules on excluding foreign contractors


from bids for government projects. The computing giant IBM has


announced a fall in sales in the first three months


of the year. It marks the fifth straight year


of declining revenues for the company as it struggles


to adapt to the switch to cloud computing and programmes -


affecting demand for its consultants, hardware


and traditional software. Lots of other business stories out


there, believe you me, apart from the fact we are heading for an


election here in the UK. Among them, Burberry. The luxury goods company,


it is reporting a slight slowdown in fourth-quarter sales. Tough


conditions in the US, it says, weighed on its performance in the UK


but it describes its performance in the UK as exceptional. That may well


be because actually there has been a real rise in tourism, luxury goods


bought in the UK, because of the weakness of sterling since last June


Fozz friend. Burberry down 6.1% so far as a result of those figures. We


will keep an eye on that. Chinese internet giant Baidu has


said it will share much of the technology it has created


for its self-driving cars. We have talked about all sorts of


driverless cars race and the really driverless cars race and the really


is a race, isn't it? It is, and what is surprising is that it is the


Chinese firm doing this, quite the reverse of other companies in the


sector, such as Tesla and Google, who have tended to keep key


developments in driverless technology secret. Baidu predicts


the project, called Apollo, would help drive the developer. Autonomous


vehicles. It is the Chinese internet giant, and they made the


announcement ahead of the Shang guy auto show. They said the


technologies would be available as soon as July -- Shanghai auto show.


It would make a range of services available to car-makers. Baidu has


been developing the self drive vehicles since 2015, and analysts


say it could benefit Baidu as it puts them in the position of


becoming the supplier of the brains for more cars than just the ones of


makes itself. And one potential benefit is also revenue from


car-makers in the long term. Analysts say this is a move a bit


like Google's decision to release android, the free operating system


for smartphones, even though it was free to use became a successful


Google because it actually drove users to the company's various


mobile apps and services. So watch this space. We will and I know you


will keep us posted from Singapore. Thank you very much. Let's look at


the numbers. Uncertainty is the name of the game.


Just as the election cycle of the Netherlands,


Germany and France was coming to an end, add in the new


But sharp falls in commodity prices have already been a drag


Iron ore prices hitting their lowest levels this year,


copper prices down too, hitting their lowest levels


since early January - over worries of oversupply.


But in Europe - the falls came on the back of that


As we've said, the rebound in the pound doesn't help the FTSE -


with earnings of the top 100 companies looking much rosier


But don't expect too much election-related


on the markets ahead of the vote on June 8th.


Unless the polls show a weakening of support for the Conservatives.


Continued support gives Theresa May a stronger mandate to take


on hardline anti-EU backbenchers and that could take


the edges off what's become known as 'hard Brexit'.


We'll assess that more in a moment - but let's first head to the US


where Michelle Fleury has the details of the day


US indexes seem unable to break their losing streak.


Will the latest earnings out of America change that momentum?


Shares in the big American bank Goldman Sachs weighed heavily


That was after its quarterly results disappointed investors.


This Wednesday, Morgan Stanley reports


Cost-cutting and a strong performance by its


trading desk is expected to lift profits.


Meanwhile, failure to keep down expenses could cost American


Analysts are forecasting a drop in its quarterly profits and


the payment company is also suffering from lower rates to


merchants as well as competition in the reward space.


And on the technology front, well, improved


royalties from Chinese smartphone makers,


that is expected to lift the


So there is plenty going on, really busy right now.


Joining us is Jeremy Stretch, head of currency strategy


Nice to see you. Good morning. Lots of stories breaking yesterday,


moving markets and let a lot of as Mr because the ball from the blue


from Theresa May. A good day to bury bad news at least in this market as


far as Godman are concerned. We did not necessarily focus quite so much


of a Goldman earnings, which were disappointing compared to their


peers. When you think about the volatility all the movement in the


aftermath of the Trump election back in November you would have


notionally assumed that Goldman's model based on high levels of


trading and volatility would have benefited from that, so that was


something about surprise. Let's took quickly, the IMF upgrading for the


UK, the timing coincidental. Absolutely. CHUCKLING


It put it only behind the United States. And behind Canada, coming


from a Canadian house. I think it is interesting that the IMF have pushed


their numbers up in line are both governments and the and also the


Bank of England. I think the question is whether we can sustain


the level of growth we have seen in quarters three and four based on


consumption because of course we have seen the savings ratio in


quarter four the lowest in the generation. Consumers are still


spending or have been spending at the expense of running down their


savings. That is not a long-term scenario that can be sustained and


of course we are still seeing the legacy of the price fall in the


value of sterling over the last year. Consumers will struggle


further in the year. For now, thank you, Jeremy. Not often just yet. He


will return and talk about some other business stories. Not more on


the election there is to come. Still to come, and we will talk about


that. What does the UK's snap


election mean for Brexit? We'll be live in Brussels to assess


the impact on the negotiations. Keep sending in your questions, we


will put that to our Europe corresponded in Brussels.


You're with Business Live from BBC News.


One of Britain's most successful business people -


Jayne Anne Gadhia - the head of the Virgin Money Bank -


has for the first time revealed her struggles


In an exclusive interview with the BBC she describes her


debilitating bout of post natal depression and her continuing mental


Particularly periods of stressful work.


She's been speaking to our economics editor Kamal Ahmed.


The first time that I'd ever, ever experienced what people had


described as depression I'd always sort of assumed depression was


something that was a bit weak minded or something.


And when it hit me I realised nothing could be further


The sort of thing that comes into your life and sucks


I don't know where to go, I don't know what to


You're at that point where everybody expects you to be happy


Her response to mental illness, to ask for help from


friends, doctors, colleagues at work, and from close


For Jayne Anne, years later in the run-up


to the Virgin Money's debut on the stock exchange.


The stress there, Jayne, you said led to


I mean, it was an important, big emotional issue.


You think, gosh, if I can't do this what is the way out?


There is no way out, I can't tell anybody,


what are the press going to


I thought I was but sometimes you think the


I didn't go too far down that route but I can understand how people can


never allow that to happen to people.


Do you think people still see depression as a sign of weakness?


If one of us turns up to work on crutches with a broken


leg it's easier to sympathise, or empathise, or help.


But when you can't see it I think that's much


That's part of the reason why both raising the


a sensible and controlled way discussing it, means that it can be


remediated in some way, whatever the right way


Jayne Anne Gadhia speaking about her experiences.


You're watching Business Live - our top story:


The UK Parliament is today expected to approve the Prime Minister's


plans to hold a snap election on June 8th.


Brexit is expected to dominate the campaign.


A quick look at how markets are faring.


I would like to mention France for our viewers in France. There is the


CAC 40, currently down slightly. On Sunday it is the first round in


their presidential race. That will bring the several candidates down to


two remaining candidates who will go in neck and neck to the month of May


so let's not just be obsessed with our events in June, important time


in France. That's how they are looking.


After the roller-coaster movement yesterday, the snap election, the


pound against the dollar, 1.28, rising sharply.


We promised you the view from Brussels so let's do that on


business life. The impending departure of the UK from the


European Union is a key issue in this election.


Our correspondent Gavin Lee joins us from Brussels.


We have had quite a few questions coming through from viewers on this.


I want to start off with Peter's question because it was going to be


my first question anyway. What is the view in EU? Will a strong


Conservative presence in Westminster League 2, I want to get his question


exactly right, a more favourable Brexit deal -- lead to? The view


here from the European Commission and council, the conduit between


Britain and the other 27 countries, is potentially it could be. We are


told by senior EU staff, when you have Theresa May dusting down the


cobwebs of the hard Brexiteers, those who were four remain, if there


is more of a unity government, presumably done at presuming she is


elected and it is not one of the other parties, the big concern here


is what happens in 2019 is that some are worried there will be a hard


Brexit, that because in 2020 there is supposed to be a General Election


which has been brought forward, by 2019 there could be an emphasis by


those arguing for a harder Brexit that Britain basically tethers


itself, there is no transitional agreement in place and for Europe


all round that seems problematic for the markets. That might be something


if Theresa May has a mandate to be a straight negotiator, things might be


easier. That is basically, what is happening here is some of the EU


diplomats are moving the chess pieces forward and looking at some


of the potential positives. Yesterday a Prime Minister said it


is problematic because they are moving the date further and further


until they can get into proper Brexit negotiations. Gavin, you have


been in Brussels to rout this and throughout the EU referendum. I'm


interested in what people are made of this when the news came in


yesterday. It was a surprise for everybody in the UK. Was there a


tutting and eye rolling response in Brussels? Genuine shock. I was in a


midday briefing where all of the EU commission officials sit down to


discuss the matters of the data. Turkey was big on the agenda


yesterday given the referendum and I mention the fact the news had come


in from Theresa May and there was real shock. The officials giving the


press conference had no information is my impression talking to some of


the staff yesterday was that there was no briefing, nobody was told in


advance. There was a conversation afterwards with Donald Tusk, the


head of the European Council, and heat we did a Hitchcock reference,


just like Brexit the movement, firstly earthquake and then the


tension builds, one of Alfred Hitchcock's quotes. It took them by


surprise and now they say their position has not changed and they


are ready to start talks. It is very different to how the movie ends and


we can't choose our own ending, unfortunately. If we talk about what


is going on this weekend in France, there could be another real issue


for Brussels if France were to go in the direction of Marine Le Pen.


Massively. I will be in Paris in a few days' time. Whittling down to


potentially two candidates if they get through to the second round and


Marine Le Pen is at the moment in contention. In the polls at the


moment it looks like she is in second place with a chance to become


the French President and she is strongly advocating taking France


out of Europe and wants a referendum on the Euro. That would be a game


changer. It comes back to the fact that EU staff on Brexit are saying


that the British election is big, they believe the French election is


potentially bigger given there is a real unknown candidate here. In


brief talks proper will probably start for Brexit in September given


what is happening behind us and given what is happening with the


British election. Gavin, good to talk to you as always, thank you for


bringing us up to date. Was of twists and turns as this unfolds but


we will keep you across that with our team particularly in Brussels


about the indications for Brexit. Jeremy is back and we are discussing


some of the other stories in the press today in terms of business, so


a breather from elections for a little while. This is in the Wall


Street Journal, sorry, the Washington Post, the newest Silicon


Valley perk, paid time off to get out on the streets and protest


against Mr Trump, the new President. Being paid on company time to


protest against the leader of the free world is an interesting


variants but it is very much the case that Silicon Valley, which is


an international community, as huge numbers of migrant workers and is


clearly a sector which is very much opposed to a lot of the policies


being pursued by Mr Trump and now the perks are being included in the


workplace. It is a sector that relies heavily on the specific


reason that Trump has just recently honed in on in the last 24 hours in


terms of how it is used and how much it is used. Absolutely, clearly the


industry feels under threat and while the industry has been very


much known for providing unusual perks to provide and facilitate the


workforce on a daily basis, this is now a real and present danger for


the industry and clearly they are responding to that by allowing them


time off to protest. Quick story from which many cinemagoers may have


noticed, you can't make movies without China, the message from


Hollywood. The money that comes from China and potential audience.


Indeed, that is the thing, when we have a big budget premier it's not


just about the numbers we're looking at for the US opening but also how


it opens in China. Clearly there is that new global franchise of viewers


being opened up. The Chinese investor isn't just about putting


money into the business but also looking at really entrenching


themselves firmly in the industry and providing a real window into the


Chinese culture and the Chinese process. Jeremy, thank you for


coming in and joining us this morning. Another momentous day.


The start of a big and busy campaign Trail, I am sure. We will keep you


across the details from Westminster. That is it from Business Live, back


here at the same time same place tomorrow. Bye bye.


Hi, we're looking at are mainly dry day of weather today but the amount


of sunshine and you get will vary from place to place. High pressure


in charge but we have this week whether from


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