05/06/2017 BBC Business Live

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

More raids as British police continue their investigation

into Saturday's attack in London but do they have the

Live from London, that's our top story on Monday, 5th June.

Days ahead of an election the Labour opposition accuses the Conservative

government of trying to "protect the public on the cheap".

Also in the programme: The UAE's Etihad Airways says is suspending

flights to Qatar amid a regional political row over terrorism.

Markets are looking like this. Oil prices on the rise over those

tensions in the Middle East. We will have all of the details.

And with security high on the agenda for the aviation industry we'll find

out what impact it's having on airlines as they hold

If you want to get in touch with us about anything we're

We start with events over the weekend and the massive police

operation after Saturday night's terror attack in central London. The

investigation is well under way. In the last few hours police have

raided two more properties in east London as they investigate

the attack which killed seven people It has prodded questions over how

the police are funded and if they have the resources they need.

Jeremy Corbyn accused the Conservatives of trying

to "protect the public on the cheap".

They accused him of "desperate promises and evasive soundbites".

The total police budget for England and Wales stands

Because it's a devolved issue in Scotland and Northern Ireland

On top of that there are extra grants including about $725 million

away and the Labour opposition is pledging about ?386

The governing Conservatives haven't given costings

but say that a new "infrastructure police force" will help

Earlier I spoke to a security expert. He said cuts to police

numbers have forced changes in strategy. It is a difficult one and

there is no hiding from the fact that resources in the police have

dropped since 2010. Police will always want more resources to deal

with this threat. I think it is worth noting that, and you said it

before, the response capability of the police forces was fantastic. To

deal with that in eight minutes shows that they have managed to

deploy those resources very, very well. It is a huge task. Obviously

the threat, the complexity of the threat we currently face, is an

enormous task against the police. There are about 3000 people on a

watchlist and you physically cannot watch all of those people all time.

It is about using the resources to work out the key targets. There are

about 550 active investigations in counterterrorism at any time. They

will prioritise those that they think are the most important. I

think the reviews will come, did they miss anything, should these

have been a higher priority and how can we ensure that in future attacks

they prioritise those and intervene sooner. Antony leather, that I spoke

to earlier. Throughout the programme I will keep you up-to-date with any

developments from central London. We have got a live page up and running,

updating all the time. We will be with our correspondence at the

scene. Facebook says it wants to make

itself a hostile environment for people who carry out

acts of terror. British Prime Minister -

Theresa May - has called on technology companies to do more

to tackle extremist content online. Google says it's already spent

hundreds of millions of dollars Toyota has ended its tie-up

with Tesla and stepped up efforts to develop electric

vehicles by itself. Toyota bought about 3% of Tesla

for $50 million in 2010. But the Japanese carmaker announced

this at the weekend that it sold the last of its stake in Tesla

at the end of 2016. Toyota wants to launch

its own purely electric car and is continuing to develop

hydrogen fuel cells. The World Bank has maintained

its forecast that global growth will rise to 2.7% this year,

citing a pickup in manufacturing and trade, improved confidence

and a rebound in commodity prices. Despite the good news,

the World Bank warned that political uncertainty and the threat

of protectionism posed a risk Lots more information on the

website. There are lots of business stories on there and also more

updates about the situation in London, following Saturday night's

terror attack at London Bridge. This is an interview between Karen

Bradley, the Secretary of State for culture, media and sport, talking to

BBC radio, saying that the Government needs to work extremely

hard to tackle this problem following the extremism on the

internet. She was probed about that. Lots of commentary on that and

reaction from some of the social media giants to that. Facebook

saying it is doing all it can to tackle extremist content on its

website. Our technology correspondent on the

West Coast of the US is staying right across that, getting a

response from Google, Facebook and the other social media firms about

how they tackle and police the content.

Five Arab nations have cut diplomatic ties

Saudi Arabia, the UAE, Bahrain and Saudi Arabia have

accused the country of meddling in their affairs and

And that's led Etihad Airways - the UAE national airline -

Other airlines are expected to do the same.

Let's get the details from our Asia Business Hub.

This is a really interesting story. We have talked about a lack of

cooperation between the Gulf states, but this is upping the ante, cutting

diplomatic ties over what is alleged to be meddling in internal affairs

and links to terrorism, pretty serious accusations? Absolutely. Oil

prices are showing they inched up, over $50 a barrel. This has come on

the news that broke that Saudi Arabia, the world's biggest crude

oil exporter, and a couple of other nations in the Middle East, broke

diplomatic ties with guitar over what they say is the country's

support for terrorism. A Saudi state news agency said it is shutting down

the border, severing contact with its fellow Opec member. That means

if you are travelling in the region, you might want to call your carrier

earlier. They are cancelling Etihad airway flights tomorrow. The Qatar

Foreign Ministry says they regretted the decision. We will have to wait

and see. Thank you, good to see you. We want to return to our top story.

Security expert Will Geddes is near the site of the attack

He is a security expert and Founder of International

Thanks for joining us. We have been talking at the start of the

programme about the police investigation ongoing. Give us a

sense of where you are. You have been talking to a lot of people, you

have insight into the security services. What is the priority right

now? The priority right now is looking at these three individuals.

They have their identity, so they are going to be looking at any kind

of associates, activity linked to any active cells under observation,

or that may not even be known. There will be doing a sift through their

networks, digital, cellular, footprints, and also, no doubt,

speaking with international colleagues. Not only the

intelligence agencies in continental Europe, the Middle East and within

five eyes partners. You can see the areas cordoned off, the police

investigation will go on for some days. The nearest tube station is

open, people are back to work. London is operating as an

international city? Yes, absolutely. You only have to look around. London

is incredibly robust. We can't forget we have had decades of

dealing with terrorism and we have had horrific attacks before. One of

the impacts that has a major influence in terms of terrorism into

business is, and again it is evident around the local area, which the

police have still got caught and off, to keep as a scene of crime

until they finish their investigations, is that it does

disrupt business in the immediate area. There are a number of

employees standing around, evidently not able to cross the cordon to get

to work. Terrorism has a number of different impacts. Not only in the

very visceral sense, in terms of human casualty and fatality, but it

has an impact on business, to a greater and lesser degree, in terms

of the isolation of those areas until the authorities can clear

them. I would imagine any business that has operations in London cuts

to think this way for the future? Absolutely. Many companies that we

know of, a number of clients, have already been looking at their crisis

management and their business continuity plans to incorporate not

only the traditional types of business interruption issues but

most especially terrorism. I think it is a very realistic and pragmatic

aspect but any company has to consider. These things can be

incredibly spontaneous. It can be, in the most well resourced

environments as well, these things can simply happen and it can

restrict the business from operating. They need to look

practically at how they continue their business. Thanks for your time

this morning. Let's get back on track with the

issues we work discussing about the tensions around the Middle East.

That is pushing up prices for oil. That is because the largest exporter

of crude oil, Saudi Arabia, other Arab states, cutting ties with

Qatar. We have talked about it there, the details of why an airline

is stopping flights to Qatar. Really interesting to see how that plays

out over the coming days. This is what Europe is doing at this point.

Frankly, not much movement. They are in wait-and-see mode across the euro

zone. Particularly ahead of the election in the UK. We will talk

more about that in a moment. Michelle Fleury has details about

what is ahead in the United States. The credit crisis exposed gaps

in how the financial In its wake, the Dodd-Frank

financial reform law was introduced This week, the house is expected

to vote to dismantle it. But the bill to change it -

The Financial Choice Act, as it's called - is likely to face

opposition in the Senate. The smart money on Wall Street

is betting that the final bill will likely include hopeful

community banks, rather Joining us is Jessica Ground, UK

Equities Fund Manager at Schroders. Good morning. Lovely to see you. We

were looking at the numbers in Europe, the FTSE is flat, the pound

is weak a bit. I guess that is the reaction you would expect. We have

the election a feud a -- a few days away? Yes, everybody will be looking

to the election, the polls showing that the lead was narrowing saw some

people putting the pound under pressure last week. It is really

going to be down to the size of her majority, if indeed she has one. I

think the markets will be quite sensitive to that on Friday morning.

I also mentioned oil. It is interesting, the tensions in the

Gulf. In the past they have tried to come up with the Gulf cooperation

agenda, that is not necessarily happening. We have seen oil going up

accordingly? Definitely. Very interesting, the diplomatic moves to

isolate Qatar on the back of some remarks that the leadership had been

making there. Unsurprisingly, oil spiking as people worry about the

tensions. Keep in mind that commodity prices have been

relatively weak this year. So, still spiking from low levels. Briefly,

many are already looking ahead to the Fed. They are missing next week.

Given the news about the economy, jobs, many are saying maybe not a

rate rise in June? Exactly. We have been waiting for a long time to see

the US start to raise interest rates. People are feeling it is a

sign that the Fed feels the economy is performing very well. But jobs

are incredibly important into that decision. So, a lot of watching to

see how secure they are feeling. All right, Jessica will return later. We

are going to look at some of the other stories in business. Still to

come, how to tackle terrorism. The As the world's top

airlines meet in Mexico - The challenge - keeping passengers

safe but keeping planes flying. You're with Business

Live from BBC News. Leaving the EU could make it harder

for companies to find well qualified staff,

according to the CIPD. It says nearly three-quarters

of firms expect competition for good staff to rise making it more

difficult to get Clare, good morning to you. Good

morning. Why it sounds simple, doesn't it, it is more difficult to

get people to come in. Is this about immigration or a competition for top

talent? It's about a competition for top talent and about organisational

concerns. In our research we found that organisations were concerned

about accessing senior and skilled employees, but also operational

staff as well. So while the future in relation to access to skills

might not be certain, what organisations can do at the moment

is really try to sharpen their hiring processes and focus on

developing and keeping their existing employees.

So that's the big issue and you are not alone in saying this is a real

problem and warning about this issue, but obviously we have an

election just a few days away, Brexit is on the minds of many going

to the polls. I mean, what are you calling for and from who? So,

basically, we think it's really important that whoever wins the

general election is aware of these organisational concerns, encourages

organisations to develop employees, but from an organisational

prospective, more needs to be done around measuring and evaluating

hiring processes and more needs to be done around delivering on

diversity and then finally more needs to be done around helping to

keep existing employees and to develop them to fill some of the

current skill gaps that organisations are experiencing and

also some of those skill gaps that they might be experiencing in the

future as a result of any Brexit deal or negotiation.

All right, Clare, thank you very much indeed. Clare McCartney. They

used to be known as the Chartered Institute of Personnel and

Development before they scrunched it together. I can see why they did

that. It's quite a mouthful. We are staying across events in

London. There is details there on president BBC Business Live page. It

is available on the website. Police here in Britain say they have

seized a huge amount of forensic material as they investigate the

latest terror attack in London. This is a live shot now. You can see the

Shard there, of course, which is very close to where all this

happened late on Saturday evening and with an election just days away,

the two main political parties have been at pains to say that, of

course, they want to continue with the democratic process in this

country despite the events of Saturday night that, perhaps want to

try and disrupt that process. That's the view you can see there at London

Bridge just down from Borough Market. The first reports coming

into police at 10.08pm, but the police response incredibly quick,

having shot the three attackers just eight minutes later. By 10.16pm that

event was over. And security is of paramount

importance to the airline sector. It has performed well in recent

years, despite fierce competition But as the international

trade body, IATA, meets for its annual get together

in Mexico could 2017 be a year Profits last year were at

a record high at $35.6 Profits last year were at a record

high at $35.6 point dollars with passenger numbers up 6.3%

percent compared to 2015. with passenger numbers up

6.3% compared to 2015. But IATA has since downgraded

its outlook for this year saying the rising cost of oil will provide

a headwind for the industry but also The question of whether the

United States will extend its ban on laptops in the cabin

for all international The US already has a ban

on large electronic devices on flights to and from

eight mostly-Muslim countries. With us is Rochelle Turner,

Research Director, It was a very swift, almost like an

overnight ban and caused chaos at the time. Give us your take on what

the industry body will discuss on that today? Well, I think the

industry body are having their meeting in Mexico and they are

worried about what the measures mean for travel and tourism the world

over. Travel and tourism is a vastly important sector. 10.2% of global

GDP relies on the tourism sector and aviation is about a third of that.

So it's a huge amount of money. And also of jobs. Now security is vital

to that and we have to ensure that these measures are not only put in

place with consultation among the industry, but that those on the

ground who are actually implementing t the people that are at the

checkpoints that have to put the security bags through the security

scanners or tell the people no, you can't take these materials with you,

they also have to know so we don't see the chaos that we have seen in

the past. How resilient is the airline industry? It's not the first

threat it faced or the first challenge it had to overcome, we saw

a lot of head winds after 9/11 and we have seen it since from

restrictions on liquids. Is this just another bump in the road for

them, a laptop ban? They said in the last ten years we have had more

disruption and it has been less peaceful for the last decade than

previous decades. Yet at the same time we have seen the global

aviation industry increase 4% a year for each of those years of the last

ten years. So yes, we are incredibly resilient despite what is happening.

When it comes to the issue of open skies, regulation, and some would

argue protectionism within the industry, what will be discussed

about that? Well, I think that's a very good question and there will be

a lot of discussion because we are seeing more and more protectionist

measures being put in place. We are seeing the laptop ban. That stops

people travelling. We are seeing the ban from Muslim countries that

Donald Trump tried to put into the US. And we are seeing a lot of these

measures that may come in almost by stealth if you like that they just

stop people travelling and we have to make sure that people can

continue to travel. Of course, there are security measures that are in

place, but they are proportionate and relevant and people on the

ground know how to implement them. Rochelle, thank you. If we get any

news out of that annual convention in Mexico, we'll update you.

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and you can find us on Facebook Business Live on TV and online,

whenever you need to know. Jessica is back as you can see. In

the Financial Times, eurozone recovery becomes surprise economic

story of 2017. We are so used to moaning about the eurozone and yet

this year is proving to be a good one? What's more surprising under

that Portugal-Italy, not traditionally seen as, we know

Germany has been strong for sometime, but showing good levels of

growth. I think quite surprising as well because everybody felt that

Prost Trump that the US was going to be the runaway success, but the

eurozone benefiting from exports, but also it will be encouraging to

policy makers. Consumption is starting to recover. The outcome of

the French election and the Netherlands has helped with the good

news story? Yes, but we are focussed on the Italian election to say

complete that picture. The only reason we are surprised is because

our expectations are low? That's true. We are still talking about

growth in Italy of 0.4%, but I think what's really interesting is we

start, when we start to think what might be the central bank and what

it is doing in response. One of the reasons that Europe is unusual it

had a huge amount of Central Bank quantitative easing and low rates

and when we start to navigate more normality. Growth has been low not

just in Europe, but globally. Tell us about the story in the

Independent about Warrington deciding to start its own bank?

Really interesting. There has been this huge debate post the financial

crisis about is sort of lending getting enough into the real

economy? And you have the case now of Warrington investing in a bank

and choosing to allocate a substantial amount of money towards

that. It is very much about money sourced locally and spent locally

and that's sort of what building societies used to do? What happened

with the building societies they merged and then for example Barclays

took over the likes of the Woolwich and if you like there, is about the

next generation TV banks coming up. They are still relatively small

though so we have got a while to go before they have a huge impact.

Jessica, thank you very much. Warrington is in the north-west. It

is near to my hometown. It is my neck of the woods as they say up

there. The on going investigation and let's show you pictures. These

are the arrivals at the Cobra emergency committee in Westminster.

You can see Michael Fallon, the Defence Secretary arriving to

co-ordinate the Government response. We will see you tomorrow. Bye-bye.

Hello. We've had a taste of summer in recent weeks. That's about to