07/06/2017 BBC Business Live


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


So less than 24 hours until Britian goes to the polls, so which party


has the policies to make voters prosper in a post-Brexit world?


Live from London, that's our top story on Wednesday, 7th June.


We'll hear from both main parties on how they'll pay for public


services and manage the country's finances.


Australia sees yet another quarter of economic growth,


but is 26 years of growth a world record?


We will have the details. Markets are looking like this across Europe


as the last day of campaigning gets under way before the UK's general


election. We will have all the details.


100,000 hotel rooms and 20 million visitors.


Dubai sets its sights high as it prepares for the 2020 World Expo.


We'll get the inside track from the hotelier hoping to cash


So luxury hotelsment we want to know what's the best perk you got from a


hotel. Keep it clean. I dread to think what people will


send after that comment from Sally. There is just one day


to go until voters here in the UK head to the polls


for the general election. It's the second national


poll in two years after the referendum


on EU membership. In light of recent terror attacks,


security been a key issue on the campaign trail,


but the economy will be a key factor And that could be


determined by Brexit. Minimising disruption to the economy


is one of the most divisive issues between the governing Conservatives


and the opposition Labour Party. Since the 2005 election,


you can see how the UK economy has gradually recovered


since the 2008 financial crisis. But growth has been


slow and unsteady. For many businesses,


Brexit means uncertainty. 29th March 2019 is the current


deadline for the UK Without a trade deal in place firms


in the UK and in the EU And maintaining growth is critical


for the UK's growing national debt. This year it's expected


to be 88% of GDP or everything the country produces -


which is higher than most In the year to the end of March


the government spent $67 billion more than it raised through tax


and other revenues. The Conservatives say that they'll


get this deficit back down zero Labour says it wants to eliminate


the deficit on day to day spending in five years,


but will borrow to invest. But the independent economic


think-tank the Institute for Fiscal Studies says Labour's


figures don't add up. That's something we put


to Shadow Chief Secretary I disagree with the Institute for


Fiscal Studies. What we've tried to do in our manifesto is set out what


our spending plans are going to be and we've got another document which


sets out how we're going to raise those figures. They are set out


clearly. It is the most clearly costed manifesto for many years. It


is certainly more clearly costed than the Conservative manifesto and


it is there for all to see and the Institute for Fiscal Studies have


had the opportunity to pour over our figures. They disagree to some


extent, but nevertheless we stand by the figures.


With me is David Gauke who is the UK's Chief Secretary


to the Treasury and the Conservative candidate for South West


Hertfordshire which is just north of London.


Good morning David. Now, of course, everybody now in this country is


trying to crystallise its thought process on what's been a very swift,


but for some, very confusing campaign period. For Theresa May she


wanted to present a strong and stable message, but many are saying


she has not really delivered a credible picture on what life will


be like outside of the European Union which was kind of her trump


card. What's your response to Well, I disagree. Clearly, we are going to


enter into a period of negotiations. Negotiations that begin in 11 days'


time. They are crucial for the future of this countriment they are


crucial for the economy. And what is very important is we have the right


leadership to go in and undertake that negotiation, to get the best


possible deal for the United Kingdom, one that strengthens our


economy, makes best use of the opportunities that are created, but


also addresses some of the risks that may arise from Brexit. It's


really, really important that we have the right leadership with a


strong mandate to go out there and negotiate that deal. But looking at


your manifesto, the Institute for Fiscal Studies, if I can get my


words out, says it is extremely light when it comes to the details


on the tax and spend proposals as is the Labour manifesto. There is a lot


of detail in there, but they don't believe it adds up. But in terms of


yours, not enough detail? Well, the difference, of course, is that we


produced a Budget in March, signed off by the Office for Budget


Responsibility, we set out more detail there in terms of what we are


doing and as the Institute for Fiscal Studies have said we build on


that approach. It's not a vast departure from what we've said


before in the very detailed Budget. What we got from the Labour Party is


a huge wish-list of spending proposals with some very dubious tax


increases, dubious in terms of unlikely to raise anything like the


revenue that they say in the short-term, they'll clearly fail to


get the money, but in the longer term really damaging the capacity of


the United Kingdom, damaging business confidence and as a


consequence, really weakening the economy and that's a huge risk for


the British people that they face when they go to the polls tomorrow.


You criticised Labour for not having detail about how it would fund some


of the proposals in its manifesto. The criticism of the Conservative


manifesto is you can't afford the austerity measures that you're


putting in place. That after seven years of austerity, already, you


can't actually deliver the promised spending cuts. How can people


believe that you will deliver what you're saying. ? Well, if you look


at what we have done over the last seven years, we have delivered the


spending reductions that we promise that had we would deliver and in


that time, we have got more children going to good or outstanding


schools. We have seen crime fall. You know, the NHS is treating more


people than it has ever treated before. So I believe that we can


continue to deliver the spending plans we've set out. Yes, there is


more money for the NHS, yes, there is more money for schools. But


within the great scheme of things, that is continuing an approach which


I think has delivered for the British people, we've got record


levels of employment in the UK. We have been one of the faster growing


major economies of the last three years or so, so I think we can build


on that. But just briefly, David, for businesses whether they be


small, medium or large, I mean the situation with Europe and leaving is


one of their key concerns and they are very concerned about the


commitment you've made to net migration of the tens of thousands


and what that will do to the labour market, to the skilled workers


they're relying on from outside the UK? Well, what I would say to they


will, look,er' not going to end immigration, but it is -- look,


we're not going to end immigration, but we are looking to move to a


different model because it is not sustainable. What is important is


that we train up our people that we do more on skills, that employers


are engaged with that's a key part of our modern industrial strategy so


we have got our own skilled workforce so that employers have got


the people that they need. All right, David Gauke, thank you.


The UK's Chief Secretary to the Treasury and a member of the


Conservative Party. And there's plenty more on the UK


election on a special section of our website including


on the economy and the policies You can also access via the BBC News


app and select Election 2017. You can also access via the BBC News


app and select Election 2017 tab. Let's take a look at some of


the other stories making the news: The Spanish bank Banco Popular has


been rescued by its larger Santander will pay just one euro


for the bank but inject almost Banco Popular has been struggling


since the eurozone crisis of 2012 because of billions of dollars


of toxic loans and The ride hailing app Uber has fired


20 of its staff as part of an investigation into sexual


harassment and other problems around Action is also being taken


against other staff. The company launched


an investigation in February after former employee wrote a blog


detailing what she said was systemic sexual harassment and gender


bias at the company. The boss of Tesla says that


new buyers of its Model 3 vehicle It will be the end of next year


before they receive their new car. They've each paid a deposit


of $1,000 to Tesla but the firm has needed to raise funds to prepare


for the launch. That's something our correspondent


prejicted would happen! Some breaking news coming into it


us. It is news from Iran. State media is reporting two operate


attacks in Tehran. In the first, gunmen, we're told opened fire


inside the Iranian Parliament. It's reported that several people have


been injured. One member of Parliament told local media that


there were four gunmen inside the complex at one point. They were


armed with rivals and a peus -- rifles and a pistol. As and when we


get more detail what about is happening, we will update you.


Here's a staggering statistic for you.


Australia has just reported its 103rd quarter of economic growth


Hence the nickname the Wonder from Down Under!


Monica Miller has the details from our Asia Business hub.


I suppose we're wondering how they have done this. China has a big part


to play. It is a long streak, however some economists are


questioning whether this is a record and this is why. They say that Japan


actually experienced better growth between the 1960s and 1990s so that


kind of phrase is actually, you know, it's a bit under question at


this point. What it means is that Australia's economy grew by 0.3%.


Now, that's modest compared to what they had a quarter ago which was


1.1%. But, you know, exists were having their doubts going into


today's announcement and that's because a lot of families in


Australia really aren't seeing the benefits of this strong economy.


They're struggling with low wages and punishing debt. The results


should however be a relief to the reserve bank of Australia. Yesterday


they decided to keep their interest rate at 1.5% where it has been since


August because they were worried about lower GDP, we will have to see


what happens next session. Back to you Sally and Ben. Monica, thank


you. We will be back with you for the latest in the region.


Shares in Japan barely moved. Investors are waiting to see


what happens in potentially market moving global events later this week


including, as we've discussed, the general election in the UK,


a European Central Bank policy decision and former FBI director


James Comey's Senate testimony There's also a whole load of data


from China due this week. Tensions in the Gulf also not


helping oil prices much. In Europe it's all eyes on the UK


ahead of the general election. The opinion polls all show different


outcomes for tomorrow's vote. The pound hasn't been


significantly affected, but is still vulnerable


if there's a hung parliament More on that shortly,


but first let's head to the US where Michelle has the details


about what's ahead on Wall Street. With economic data light and with


politics on the minds of many investors this week, from the UK


election to former FBI director James Comey's testimony before the


Senate on Thursday, unsurprisingly markets are shying away from taking


on too much risk. Against this backdrop Donald Trump continues his


push this week to spend more on infrastructure. On Monday you may


recall the president spoke of the need to upgrade America's air


traffic technology by privatising the system. This Wednesday, he will


be in Cincinnati. Trump's economic agenda from infrastructure to tax


reform as well as deregulation proved popular with voters,


businesses and with the stock market, but lately fears have grown


about just how much of his agenda will the president be able to


deliver? That's the question on many people's


minds, since November last year. Joining us is Jeremy Stretch,


head of currency strategy Good morning. Good morning. We are


looking at the story of Santander rescuing a bank. Give us your take.


It is a reminder of the risk out there in Europe? This is one of the


reasons why Europe has been slower in terms of the recovery process


because a until of banks in Europe have still been rather under


capitalised and one of the reasons why this bank was struggling was the


fact they had almost 37 billion of non performing real estate loans. So


it is a reminder if it were needed that there are still problems in the


banking sector, not just in Spain, but in parts of Europe which have


been holding back the eurozone recovery somewhat. Sepp


Some reaction to the acquisition of Banco Popular. This is Nick Leeson.


He says that banks are getting cheaper, Banco Popular only 1 euro.


He says this underlines the risk of that banks face and the desperate


need to recapitalise. Indeed. We have been seeing these problems in


the banking sector going back to Northern Rock in the UK, although we


had a liquidity crisis which has been one of the problems for this


particular bank. And there are still ongoing concerns. And for viewers in


Spain, the European Commission is at pains to say that their deposits are


safe. Indeed. That is the message we are getting, that the supervisory


mechanism across Europe is doing what it should do in terms of making


sure, and guaranteeing that a failing bank is taking over by


another one, well funded institution such as Santander so that investors


will see their deposits maintained. We note that there will be no


uncertainty in that context. Jeremy is coming back later. Two. To us


about other stories. -- to talk to us.


Still to come, build it and they'll come.


We get the inside track on Dubai's latest building boom - for hotels.


AS the city prepares for 20 million visitors ahead


You're with Business Live from BBC News.


Another day, another house price survey and a week after nationwide


reported a cooling of prices, Halifax are saying that growth is


slowing, too. If we look at the overall figure, prices have gone up


by 3.3% year on year but have fallen by 0.2% over the last quarter. There


has been a shift. Feel like it has been crunching the numbers. He is in


our business newsroom. -- Theo Leggett. This has been pretty


consistent. The message coming out of the moment is that the housing


market is cooling. If you take that figure of 3.3% growth over the past


year, a little more than a year ago it was 10%. This quarterly fall of


0.2% is only the second quarterly fall since 2012. We're seeing that


house prices have risen to such an extent in London and the south-east


in particular that they are now becoming less affordable, and it is


tailing off. That is not the case according to many of the surveys


that we have had in the north of the country in particular. Those prices


are still pretty buoyant. But because of the slowdown in the


south, the picture across the country is that prices are easing


off. And what is so interesting is that we get caught up in these


numbers. We have to give it a bit of context and a bit of perspective


because there is no point getting caught up on month by month, the


overall trend is what we should care about. Yes, and the overall trend


means you look at the trend year on year, where house prices are rising


but not as quickly. Over the past year, don't forget that we have had


a great deal of political uncertainty following the EU


referendum vote, we got a general election, and people are not


entirely sure what is happening with interest rates. What Halifax says is


that there is still a relatively short supply of houses, would not


that much on the market. Interest rates are still fairly low and there


is every reason to expect that they will firm up a bit over the coming


months. Thanks a lot. We will see you very soon. Stay away from the UK


election for a few more minutes, Anglo-American has named a new


chairman. A big player on the FTSE 100. They have appointed steward


chambers, who was with a UK ship maker. Stewart is on the right-hand


side there he is with the boss of Softbank. That is some more news.


Our top story here, politicians across Britain making their last


full day of campaign stops before the election. Both main parties have


been criticised over their plans for the public finances. Labour


criticised for how it plans to fund some of its manifesto promises and


the Conservatives under fire for how they will continue austerity cuts.


Looking at the market is very briefly, don't forget that we have


got fact checking and all sorts on our website. Take a look at the


manifestos and what they promise. The markets in Europe are fairly


flat, as you can see. There is a European Central Bank meeting


tomorrow, as well as the European election -- UK election. Investors


remaining cautious. You might think the last thing Dubai needs is more


hotels, but as the country prepares to hold the world Expo intention --


world export to limit exposure in 2020s says it needs more than


100,000 hotel rooms to cope with an extra 20 million visitors.


So as well as building new hotels, the city


is expanding existing ones - including the Atlantis Resort, built


I met up with Serge Zaalof, the Managing Director


at Atlantis Dubai and asked him what's driving Dubai's building


The good thing about to buy, we have over 20 different nationalities in


Dubai. If you are successful in Europe occupation, it does not


matter what religion or ethnic to see you are, you will be taken


seriously. It is a very good society. Logistically, they are


working on it and it is improving year-on-year. But there is always


some instruction happening. It is for the good of the country and the


city and the people working here also, and for tourists of course.


The last time I was in Dubai, I was astonished at how many new hotels


were there. So many more hotel rooms. Does that worry you? No


because we have been talking about this since the 90s. We thought we


would be suffering from low occupancy rates but this is not


happening. Compared to last year, we are 93% occupancy. In the old days


we had a lot of problems and then the Russians started coming, and now


we have the Chinese and the Indians. The Germans and French are coming


back. And Russia is coming back also. You currently have the


Atlantis hotel and you are about to expand and open a new one down the


road. Tell me about that. We are opening at the end of 2019 and we


have a very iconic architecture, a bit of a departure from what we have


right now. It is very modern architecture. It will be linked by a


bridge in the middle and I think that we are going to look at the


Guinness book of records because we will have 94 swimming pools in the


building, between the hotel and the residences. A lot of challenges for


the global travel industry at the moment, be that travel bans or


people having less money in their pocket. How do you keep people


coming to your hotels? We have a lot of attractive offers for our


customers. We are very flexible. One thing that is amazing about Dubai is


that tourism works very closely with the private sector. The Minister of


tourism, he calls me every two weeks. This would not happen in any


other country. So to buy, they are keeping their hands on it, and it is


very effective. The Emirates airline reported a big fall in profits last


year, does that worry you? No. Emirates have dropped rates because


they have to, and we have to also. Atlanta's have dropped their rates


less than the competition, and we are doing what we expected to do,


the same numbers in 2016. We are beating the budget and we are very


happy. But we are not worried about Emirates. Dubai has a 2020 vision


and it is all about getting everybody aligned behind that for


the world Expo. How important is something like that for all the


different parts of the economy to get behind? The committee for 2020


is meeting with us at Atlantis, and we are very much involved in the


discussion. It will happen and it will be positive. When Dubai does


something, it does it well or does not. We are confident it will be a


good success. The managing director of Atlantis India by speaking to me


about their expansion plans. 100,000 hotel the target by 2020. So we


asked you if you had had any incredible free hotel perks, and


what was important to you when staying in a hotel. Suzy got in


touch. She works for Alltel because she says, we arrange for guests to


see the on the beach. -- we arranged for a guest to sleep on the beach.


They moved the entire room out to the beach. Let's reintroduce Jeremy.


He is back with us. The most important thing for you in a hotel?


Obviously why fight is won, and I think a very good shower is always


very useful. -- obviously wi-fi is one. I find that those cards that


they use instead of a key, they always many function -- there was


not auction. Let's talk about Qatar because they are looking at the


diplomatic spat between Qatar and its neighbours. They are trying to


count the economic cost as anger continues. It is an interesting


story. Clearly there is this diplomatic impasse between the


powers within the region and clearly that is related Berkeley to


negotiations or relations with Iran, which obviously are a thorny issue


for Saudi Arabia. In the context of Qatar, there are real concerns about


price pressures and shortages of goods. Good to see you. Time is


tight but thank you for coming in. We are back tomorrow.


A busy day ahead of the general election. Bye-bye.


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