:00:00. > :00:18.Live from London, that's our top story on Wednesday 5th July.
:00:19. > :00:21.General Motors is hoping to get the all-clear for the sale of Opel
:00:22. > :00:23.and Vauxhall today, but workers fear for their future,
:00:24. > :00:29.as the new buyers talk of "speedy" cost savings.
:00:30. > :00:34.And Narendra Modi has become the first
:00:35. > :00:37.Indian Prime Minister to visit Israel ever, with new military
:00:38. > :00:39.and cyber security deals at the top of the agenda.
:00:40. > :00:44.And we have the latest from the markets.
:00:45. > :00:51.All of them down, but the FTSE only a touch, just .03 of a percent. More
:00:52. > :00:53.on that later. And we'll be getting
:00:54. > :00:55.the inside track on on a business that's been milking big profits
:00:56. > :00:57.around the globe, we're going to be speaking
:00:58. > :01:00.to the boss of Arla, one of the world's
:01:01. > :01:01.biggest dairy companies. Also, as Volvo calls time
:01:02. > :01:04.on the internal combustion engine, are you ready to give
:01:05. > :01:07.up your gas guzzler? Get in touch, just use
:01:08. > :01:16.the hashtag #BBCBizLive. whether or not to give the green
:01:17. > :01:22.light to General Motors for the $2.5bn sale
:01:23. > :01:28.of its European operations. GM is hoping to off-load Vauxhall
:01:29. > :01:32.and Opel to the PSA group, that's the French company,
:01:33. > :01:36.which owns Peugeot and Citroen. It's easy to see why
:01:37. > :01:39.General Motors wants to sell - their European operation,
:01:40. > :01:41.which is dominated by Opel, has lost If successful,
:01:42. > :01:49.the deal would make PSA the continent's second-biggest car
:01:50. > :01:51.maker, after Volkswagen, and ahead Opel employs 38,000
:01:52. > :02:01.people across Europe, and it's feared the sale could put
:02:02. > :02:04.thousands of those jobs under threat, with workers in the UK and
:02:05. > :02:07.Germany considered to be most at With me is Ozgur Tohumcu, Chief
:02:08. > :02:11.Executive of Tantalum Corporation - who specialise in analysing
:02:12. > :02:19.automotive data. Ozgur, thank you so much for joining
:02:20. > :02:23.us in the studio. Do you think this deal will go ahead? I think it will
:02:24. > :02:27.go ahead, because if you look at all the data and the money just
:02:28. > :02:30.presented, it will be the second largest auto-maker in Europe. I
:02:31. > :02:36.don't necessarily think it will be a moniker listed position for the new
:02:37. > :02:44.company, so it will be cleared in my opinion -- a monopoly. Given that GM
:02:45. > :02:51.have lost $9.1 billion through Opal, why do PSA want to buy the company?
:02:52. > :02:55.To your point, the European operation for GM has not made a
:02:56. > :02:58.profit since 1999, and PSA once it probably for two reasons, one is
:02:59. > :03:03.that you will have access to the second largest market in Europe,
:03:04. > :03:07.which is the UK, and then it allows them to distribute their cars across
:03:08. > :03:13.a larger scale. Will they use it to get out of Europe at all, because
:03:14. > :03:16.PSA is notoriously European continent based? Will they go to
:03:17. > :03:21.China, export to the States, anything like that? Towards emerging
:03:22. > :03:25.markets may be, I doubt towards the US because PSA tried to enter the
:03:26. > :03:29.American market for many years and has not been successful, but
:03:30. > :03:32.ultimately I think it is a play for the European market. There is
:03:33. > :03:36.concern this merger could bring job cuts for workers. There must be a
:03:37. > :03:41.lot of overlaps. There has been a lot of good communication between GM
:03:42. > :03:46.and the PSA group, Opel and Vauxhall, as far as I can look at
:03:47. > :03:48.the media following the press releases, the German work
:03:49. > :03:52.councillors and the UK unions were given a lot of assurances about now
:03:53. > :03:56.job cuts, but history says in the long-term if you want to achieve the
:03:57. > :04:01.types of savings they are looking for, you have to do some reductions.
:04:02. > :04:04.What is interesting about the timing of this, the timing in the
:04:05. > :04:07.development of Holkar industry is that we all know in ten years' time
:04:08. > :04:11.the car industry will completely different from whatever it is like
:04:12. > :04:22.at the moment. So how does this move really play -- the Hoff car injures
:04:23. > :04:28.three. -- the Holkar industry. Yes, some of the emerging trends. You
:04:29. > :04:36.highlighted one of them around a electric vehicles, you have the
:04:37. > :04:39.drive towards autonomous vehicles. There is not much talk about how the
:04:40. > :04:46.new entity will be embracing these new trends. So it is all up in the
:04:47. > :04:49.air? For addressing these trends, think it is a lot in the air and we
:04:50. > :04:52.have to realise all of these companies to be successful in the
:04:53. > :04:56.long-term, they have to embrace of these big shifts in the car
:04:57. > :04:57.industry. OK, thank you very much for your time.
:04:58. > :05:02.Let's take a look at some of the other stories making the news...
:05:03. > :05:04.Volvo has announced that it is the first traditional
:05:05. > :05:07.car-maker to shift to pure electric and hybrid production -
:05:08. > :05:10.signalling the end of the internal combustion engine.
:05:11. > :05:15.Every model made from 2019 onwards will have an electric motor.
:05:16. > :05:19.The company said it will also offer hybrid options on every model.
:05:20. > :05:21.London remains Europe's number one hub for technology
:05:22. > :05:26.The Mayor of London's agency, London Partners, say that
:05:27. > :05:28.in the first half of 2017, private equity investment
:05:29. > :05:31.in the capital's tech sector totalled a record $5.8bn.
:05:32. > :05:33.During the same period, Berlin was the next most popular
:05:34. > :05:45.Emirates has said the cabin ban on laptops no longer applies
:05:46. > :05:49.In March, the US banned cabin laptops and other large electronic
:05:50. > :05:52.devices to and from eight mostly Muslim nations, fearing bombs may
:05:53. > :06:08.Just a quick look at this story coming out of India on our live
:06:09. > :06:12.page, posted by Simon Atkinson, saying snapped deal rejects flip
:06:13. > :06:15.card offer. This was a long awaited merger, India's two biggest
:06:16. > :06:23.home-grown online retailers. It looks like talks have hit the rocks.
:06:24. > :06:26.Snapped deal rejected a takeover. Amazon is making big inroads into
:06:27. > :06:29.India so it is thought that negotiations might get back on
:06:30. > :06:32.track. Nobody has said anything officially yet on that one.
:06:33. > :06:34.Nahendra Modi is in Israel on the first ever official
:06:35. > :06:39.Sameer Hashmi is in Mumbai - what's on the agenda?
:06:40. > :06:49.A lot, if it is the first visit ever. That's right, it is a
:06:50. > :06:54.significant and historic trip, the first Indian Prime Minister to visit
:06:55. > :07:00.Israel in 70 years, since India got independence. A lot is on the menu,
:07:01. > :07:04.especially deals, I want to talk about the fence first, that is the
:07:05. > :07:08.big area where deals are expected. India is Israel's biggest market for
:07:09. > :07:16.arms -- want to talk about defence first. India is expected to order
:07:17. > :07:20.8000 spike anti-tank missiles, which would cost about $500 million. That
:07:21. > :07:28.deal could be signed on this trip. India could also signed MoUss for
:07:29. > :07:31.buying more weapons in the future. Last year India signed deals worth
:07:32. > :07:38.$2 billion alone when it comes to defence. Israel and India space
:07:39. > :07:42.agencies could sign a deal where they could collaborate on some
:07:43. > :07:47.projects, and Israel could look at buying or using India space research
:07:48. > :07:53.Organisation's lunches to launch its own satellites. In addition to that,
:07:54. > :07:57.water and agriculture are the other two sectors where deals are expected
:07:58. > :08:00.to be announced. So yes, multi-billion dollars of deals could
:08:01. > :08:03.be announced at the end of this trip and we are expected to hear
:08:04. > :08:11.something by this evening. Good to hear from you, thank you. A quick
:08:12. > :08:19.look at markets. Completely unfazed, then OK, by the missile tests in
:08:20. > :08:21.North Korea. All of the markets a little bit of looking reasonably
:08:22. > :08:28.healthy. On the European markets, this is where they have started. The
:08:29. > :08:32.FTSE hovering around 73.50, 73.60. Read tax is down a touch. Remember,
:08:33. > :08:37.later in the week we have the jobs figures coming out of the US. We are
:08:38. > :08:40.slightly holding our breath for that but we would talk about that a bit
:08:41. > :08:44.in a second. Meanwhile, looking ahead to what is going on in the US
:08:45. > :08:50.later today, remember we had a holiday yesterday.
:08:51. > :08:54.People will be rubbing their eyes as they get back to business on
:08:55. > :08:59.Wednesday after the July four holiday. Markets and businesses were
:09:00. > :09:04.closed in observance, so Wednesday will really be back at it for most
:09:05. > :09:07.people. The Federal Reserve, America's central bank, will release
:09:08. > :09:12.the minutes from their last committee meeting back in June. At
:09:13. > :09:15.that meeting, they decided to raise interest rates, and it was the
:09:16. > :09:21.fourth time they have done so since the end of the recession. The Fed
:09:22. > :09:26.also revealed plans to reduce its monster sized bond portfolio but
:09:27. > :09:30.during the financial crisis. -- bought during the financial crisis.
:09:31. > :09:33.The minutes will be interesting because policy members have
:09:34. > :09:36.expressed concerns about inflation, that it is quite tepid, so investors
:09:37. > :09:38.will be looking to see if any of that anxiety might put the brakes on
:09:39. > :09:45.further increases to interest rates. Joining us is Mike Amey,
:09:46. > :09:49.Managing Director and Portfolio Manager at investment
:09:50. > :09:56.management firm, PIMCO. We will start with the Asian
:09:57. > :09:59.markets, something you might have expected to see a big reaction on
:10:00. > :10:02.the markets with a North Korean missile test, but it hasn't really
:10:03. > :10:06.happened. If you look back to the last six to nine months, one of the
:10:07. > :10:10.things we were worried about with a change in the US presidency was some
:10:11. > :10:13.more aggressive foreign policy, and potentially that could create some
:10:14. > :10:18.volatility is in the markets. You have had all of these nuclear tests,
:10:19. > :10:21.these ballistic tests, rather, and a very muted response, effectively
:10:22. > :10:28.just moving on. Because they just anything it is going to come to
:10:29. > :10:33.anything, for...? I think there is no clarity. I thought markets hate
:10:34. > :10:38.uncertainty? But nothing has changed. We have seen this before,
:10:39. > :10:42.one way or another. I do think it is quite interesting that the markets
:10:43. > :10:47.are just not interested, which is potentially a little bit complacent,
:10:48. > :10:52.frankly. I have written down in my notes here, missiles and money. The
:10:53. > :10:56.second question is about money, world pay, this great transaction
:10:57. > :11:09.processor. People are chasing it. It will go for a lot of money. WorldPay
:11:10. > :11:13.is a transaction system, when you pay through your mobile phone
:11:14. > :11:16.banking app or through contactless, these are the people who do the
:11:17. > :11:20.transactions, and they are doing very well at it. The company has
:11:21. > :11:27.been valued at eight to nine Ilion pounds. It rose by ?2 billion
:11:28. > :11:33.yesterday alone. Which ironically is what RBS sold at four in 2010. Poor
:11:34. > :11:39.RBS. A tough one to look back on. Unfortunately the time they had to
:11:40. > :11:42.sell it, they had no choice was that RBS a British state-owned bank that
:11:43. > :11:48.had to be bailed out in 2008 and then had to sell off its assets, and
:11:49. > :11:51.this was one of them. Enda yes, sold the two billion and now it is worth
:11:52. > :11:58.eight to nine. We will be talking about Bravo getting rid of the
:11:59. > :12:04.internal combustion engine, do you have a hybrid car? We do have an
:12:05. > :12:10.electric car actually. Head of the curve, I am still on a diesel. So am
:12:11. > :12:12.I. Still to come, we will be getting the inside track on a business that
:12:13. > :12:15.has been milking big profits around the globe.
:12:16. > :12:24.You are with Business Live, from BBC News.
:12:25. > :12:26.Food prices at the supermarket are continuing to rise,
:12:27. > :12:29.according to the latest shop price index from the British
:12:30. > :12:38.ambient food up 1.5% - over prices were down 0.3% in june
:12:39. > :12:41.ambient food up 1.5% - over prices were down 0.3% in June
:12:42. > :12:48.helped by non food products falling 1.4% in price.
:12:49. > :12:50.Rachel Lund is Head of Retail Insight Analytics
:12:51. > :13:00.I suppose what surprises me about these figures is in some respects of
:13:01. > :13:06.them are still going down, even though we have got inflation at
:13:07. > :13:09.2.9%. You are absolutely right. Year-on-year, some of these prices
:13:10. > :13:12.are going down, although what we have seen the last six months as
:13:13. > :13:16.they are edging up, it is just that at the back end of last year there
:13:17. > :13:23.were some big falls in prices, so quite a lot of ground to recover,
:13:24. > :13:26.particularly in non-food prices. So what is actually reversing the sort
:13:27. > :13:32.of devolutionary trend in food prices? Is it to do with the weaker
:13:33. > :13:35.pound or what? It has a big part to play. The currency has fell 12%
:13:36. > :13:39.since the referendum last year, which has a big impact on input
:13:40. > :13:43.costs, but also to monitor prices as well first we have been through a
:13:44. > :13:47.period of low and falling commodity prices, which has reversed over the
:13:48. > :13:50.past year, so we have seen some big gains in underlying commodity
:13:51. > :13:54.prices. Looking forward, where do you think prices will go in the
:13:55. > :13:58.supermarkets? Prices will continue to head upwards. We have probably
:13:59. > :14:01.seen the lion's share of increases in food prices, they will almost
:14:02. > :14:11.certainly had up a little bit but we have still got a little bit more to
:14:12. > :14:13.come, particularly in the non-food area. We expect to see the shop
:14:14. > :14:15.price index, which we report on, heading to inflationary territory in
:14:16. > :14:18.the next few months. What you think is the major factor in the moment in
:14:19. > :14:22.terms of determining where prices go? I think it very much is the
:14:23. > :14:25.currency movement. That takes some time to feed through, because of
:14:26. > :14:28.hedging contracts and also because of stock cycles as well, and we
:14:29. > :14:32.haven't seen all of those impacts play out. Thank you very much for
:14:33. > :14:39.joining us. We will look at another food related item on our live page.
:14:40. > :14:44.Food and cars and missiles today, isn't it? Do you do your grocery
:14:45. > :14:53.shopping online? Sometimes but very rarely. What do you think the
:14:54. > :14:55.average weekly Ocado costs? 50 quid. ?108 and that has gone down. More
:14:56. > :15:04.details on that on our live page. You're watching Business Live -
:15:05. > :15:06.our top story The EU Commission will decide today whether or not
:15:07. > :15:09.to give the green light to General Motors sale
:15:10. > :15:11.of its European Vauxhall and Opel A quick look at how
:15:12. > :15:28.markets are faring.... We have moved upwards. A little bit
:15:29. > :15:35.undecided, the FT-SE up one quarter of a percent.
:15:36. > :15:37.Now let's get the inside track on the big business
:15:38. > :15:42.Our next guest, Arla Foods, is one of the world's
:15:43. > :15:45.biggest dairy companies - that's been going since
:15:46. > :15:52.the 1880's and now turns over in excess of $10bn.
:15:53. > :15:55.The brand does not have an enormous profile.
:15:56. > :15:57.Based in Denmark, Arla is an international
:15:58. > :16:04.It's major brands include Lurpak butter and Castello cheese.
:16:05. > :16:09.Peder Tuborgh is the Chief Executive of Arla...
:16:10. > :16:17.Welcome to the studio. The company has a long and deepest to read.
:16:18. > :16:23.Telus when it started, and how it is led by cooperatives? The company is
:16:24. > :16:28.much older than us. Since the 1880s. We are owned by farmers in seven
:16:29. > :16:36.different countries. Including 2500 farmers in the UK. We have a big
:16:37. > :16:40.base of farmers that own the company this because it is owned by the
:16:41. > :16:45.farmers, what difference does that make? Why are you different from an
:16:46. > :16:48.ordinary milk company? We're different, every penny we make our
:16:49. > :16:53.profits go right back to the farmers. I have employed by farmers
:16:54. > :16:59.to make sure the milk price is as high as it can be in any given
:17:00. > :17:05.situation. Let's talk about the milk price. About one year ago in the
:17:06. > :17:09.headlines in the UK. Unsustainable, farmers getting less than it was
:17:10. > :17:14.costing them to produce it. Where is it now? We have been through a
:17:15. > :17:18.recession, global recession, millions of farmers can echo that.
:17:19. > :17:24.It has recovered. We are on an upward slope. We heard from your
:17:25. > :17:29.previous interview there is inflation, but nothing to do with
:17:30. > :17:36.the pound, it is a global thing. Do your farmers make more from their
:17:37. > :17:43.milk than other farmers? We strive to be in a position. That is not a
:17:44. > :17:48.yes. At the moment yes, but you can find times when we are just average.
:17:49. > :17:52.Why is it so difficult to get a high price for milk, it is such a natural
:17:53. > :17:58.food, something we will need. The world's population is growing. Why
:17:59. > :18:03.is the milk price so volatile? It is Wallace are because of the supply
:18:04. > :18:07.side. Farmers all over the world react to milk prices. When it is
:18:08. > :18:14.down this stop producing. Which they have done in the last year. Then
:18:15. > :18:21.there is a lack of milk, guess what, but very short at Christmas time. We
:18:22. > :18:27.have a desperate need for butter. By your Christmas but now. Where will
:18:28. > :18:36.milk come from in the future? The big mass intensive farms in the huge
:18:37. > :18:43.acres of them. Or will it come from organic food and farms? We are the
:18:44. > :18:48.world's biggest producer of organics food. 1 billion litres of milk. Our
:18:49. > :18:55.organic farmers are amongst the biggest one. It is having bigger
:18:56. > :18:59.farms, that is a trend for 125 years, but doing it in a sustainable
:19:00. > :19:03.way. That is why we are unique, doing it without farmers, to make
:19:04. > :19:08.sure as they become more efficient they are doing it in a sustainable
:19:09. > :19:13.way. What new markets are opening up? More sales in China? Yes
:19:14. > :19:18.certainly, we have partnerships and co-owner ships in China. I'm very
:19:19. > :19:25.focused on Africa and sub Sahara, we have open the facility in Nigeria.
:19:26. > :19:31.What concerns do have, compared to the UK? It is new consumption. Plays
:19:32. > :19:38.out in a different way. The Chinese do not eat a lot of cheesier. How
:19:39. > :19:44.that cheese market will play up is a wonder. What is your contribution to
:19:45. > :19:50.greenhouse gas? Your methane production is massive. Actually a
:19:51. > :19:58.serious problem. It is, that is how the carriers. A force of nature.
:19:59. > :20:03.Well, you can do a lot of things to research, how you feed the cows. We
:20:04. > :20:13.have great programmes around. On the supply side, we have the biggest
:20:14. > :20:20.fresh milk dairy outside London, carbon neutral. 80%. That is how
:20:21. > :20:25.you're going to feed an enormous market coming in China. Increasingly
:20:26. > :20:30.using dairy products, which 20 years ago they did not. Still the per
:20:31. > :20:34.capita consumption is much lower than Europe. That will drive the
:20:35. > :20:36.excitement in the future of the dairy industry. Thank you so much
:20:37. > :20:38.for coming in. In a moment we'll take a look
:20:39. > :20:41.through the Business Pages but first here's a quick reminder of how
:20:42. > :20:50.to get in touch with us. The business live pages where you
:20:51. > :20:54.can stay ahead of all the day's breaking business news. We keep you
:20:55. > :20:57.up to the latest details with insight and analysis from the BBC's
:20:58. > :21:04.team of editors right around the world. We want to hear from you, get
:21:05. > :21:08.involved on the BBC Business Live page. We aren't Twitter. And you can
:21:09. > :21:18.find us on Facebook. -- we are on. What other business
:21:19. > :21:20.stories has the media been Joining us again is Mike Amey,
:21:21. > :21:31.Managing Director and We will start with his Volvo story.
:21:32. > :21:38.Explain what this is about. The end of the combustion engine? Volvo
:21:39. > :21:42.announcing that by 2019 all of their cars, they will not have a
:21:43. > :21:52.combustion engine in any car from 2019 onwards. The first classic car
:21:53. > :21:58.company. They will have an option of combustion in the Highbury. Name one
:21:59. > :22:02.is developing in internal combustion engine now, he would? You have the
:22:03. > :22:09.transition going on. The key question for the car industry, where
:22:10. > :22:14.the focus is. Whether the incumbents will be the dominant force, or the
:22:15. > :22:17.newer companies coming through. Volvo trying to be one of the newer
:22:18. > :22:23.companies, making the move early. You are a convert? We have an
:22:24. > :22:30.electric car. It is great. Really enjoyed it. What about the range?
:22:31. > :22:42.About to edge and 50, 200 six miles. What happens if you want to go 500
:22:43. > :22:46.miles. We have a diesel car. We thought that when we were told the
:22:47. > :22:50.authority by diesel cars this would you give up your gas guzzler? Andy
:22:51. > :22:57.says electric cars are not the future. Hydrogen fuel cells will be
:22:58. > :23:01.the only way forward. Wolfgang says he would go for it for the right
:23:02. > :23:11.place. Jim says why have a car when you can have a new
:23:12. > :23:24.Uber. Story in the US about people employed in carp production going
:23:25. > :23:33.down. What Mr Trump promised, to keep industries like this employing
:23:34. > :23:39.people. There is a question as to whether the demand is not there.
:23:40. > :23:43.Everyone has their new car. There are some issues there. The
:23:44. > :23:47.workforces down a of percent. Of course the US is supposed to be one
:23:48. > :23:52.of the stronger economies. Couple of warning signs we should all be aware
:23:53. > :23:55.of. If there is a slowdown in the car industry, does that mean we will
:23:56. > :24:06.get the broader slowdown in the consumer sector. A story about the
:24:07. > :24:11.Green Day concert due to take place in Scotland, cancelled at the last
:24:12. > :24:16.minute. A staff turning up to do a 12 hour shift did not get paid. You
:24:17. > :24:22.many reasons. I was lucky enough, many reasons. I was lucky enough,
:24:23. > :24:28.they are touring Europe, I was lucky enough to go to the London gig on
:24:29. > :24:34.Saturday. We might have a photo of that. Team photo. That is a Lions
:24:35. > :24:46.topped . People working at the gig, 200
:24:47. > :24:50.people not paid for this turning up to do the 12 hour shift. Zero hours
:24:51. > :24:56.contract, the gig was cancelled, they got nothing. A good example of
:24:57. > :25:02.how tough it is if you are on those contracts. What can you do about
:25:03. > :25:06.that? Any legislation? Everybody would love to bring in laws and
:25:07. > :25:12.regulations? You could say there has to be a role if you are there, this
:25:13. > :25:16.was half an hour before the thing was supposed to start, one thing you
:25:17. > :25:22.could say, if you are there X hours beforehand. People would pay for
:25:23. > :25:29.childcare. They have to get there and get back. The workers can
:25:30. > :25:36.dictate the terms of the contract. You can start to turn things around.
:25:37. > :25:42.Let us know what gave you are going to next. All we have time for an
:25:43. > :25:52.business. More business news through the day on the BBC website.
:25:53. > :26:00.We will see a few contrasts in the weather across the UK in the next
:26:01. > :26:01.few days. For many parts of England and Wales it will turn very warm, if