05/06/2017 BBC Business Live


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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.


This programme is all about you, what you want to hear from us and


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you want us to talk about. The Business Live page


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from the BBC's team of editors Get involved on the BBC business


live web page: bbc.com/business. On Twitter, @BBCBusiness


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


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