15/08/2017 BBC Business Live


15/08/2017

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

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The UK government pushes for a frictionless trade deal

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to help ease its transition towards a post-Brexit future.

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Live from London, that's our top story

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The British government has laid out it's strategy

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for trade with the EU - calling for a temporary customs

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union and a period of transition to avoid post-Brexit chaos,

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Also in the programme Donald Trump puts America first -

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opening an investigation into whether China is stealing

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Intellectual Property from American firms.

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And we will keep an eye on the market, positive start to the

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trading day across the European indices, reflecting a return to an

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appetite for risk. And also on the programme...

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And is a lack of charging points holding back growth

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The boss of the Uk's largest network of charging stations is here...

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So today we want to know: What's holding you back

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If you drive - would you go electric?

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Let us know, use the hashtag BBC Biz Live.

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The British Prime Minister Theresa May has this morning,

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published a blueprint for future trade relations between the UK

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In the first of a series of Brexit papers, the government suggested

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creating an interim period of trade, saying one possible approach

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would be a temporary customs union between the UK and the EU.

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That means they would continue applying the same tariffs to goods

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from outside the union - which can then move between them

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The government's Brexit committee hopes a time-limited transition

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period will give importers and exporters enough time to adjust

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In a bid to create what it calls a "seamless and

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the government has suggested either creating a brand

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new arrangement that includes a new customs border...

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or a special partnership which would negate the need

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Brexit Secretary David Davis spoke to the BBC earlier.

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It's a pretty simple, practical set of proposals we have put forward.

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Primarily due have two elements, when we leave the European Union we

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leave the customs union, will we have a transitional arrangement for

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a year or two that will allow not just British companies to sell into

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Europe at European countries who sell 60 billion more than us into

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the UK? With me is our Business

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Editor Simon Jack. It sounds very good in theory but

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the first thing many people will think, having your cake and eating

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it? This is the having your cake and eating it position paper. There are

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reasons this has been issued today, they want to show that they have

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been negotiating with each other, making progress. They want to leave

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the customs union but they don't want anything to change. Are you out

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or in? Technically out, but nothing much will change, the only thing

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that will change, if we are technically out of the customs union

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means the UK is at liberty to sign, negotiate and find new trade deals,

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as you say, having your cake and eating it. This is what Boris

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Johnson was so fond of and EU officials were not. Business will

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probably like this, it means they will have to adjust once we find

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other trade deals in place, rather than having to adjust once and again

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when we signed trade deals, this relies on the fact that a deal will

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be done, no sense that this will actually happen, we haven't started

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discussing trade yet. That's a really important point, let's say

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technically they say you are out of the customs union, you can negotiate

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your own trade deals, it will be very hard to see how those

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substantive trade talks with third-party countries can't even we

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still don't know the overriding relationship between the UK and the

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EU will be. They will say we need to see whether it's going to be

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tariffs, trade terms, how they will go, the customs union is a border

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issue, the wider issues will still be unsettled, you can't do a

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substantive trade deal until you know what the UK relationship with

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the US and we are not even in the foothills of that yet. It seems they

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may have hit upon something that could give a bit of a breakthrough,

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given how important it is for Germany in particular and the rest

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of Europe to be able to access the UK market in terms of getting their

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products here and carrying on sales. The fear was if you go out of Dover,

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one of the main ports in the UK, you see trucks rolling on and off, at

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the moment we are in the club you don't have to show ID at the door

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and open your trucks, the fear was if you throw sand into that well

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oiled engine, you get chaos. On both sides of the input channel. I think

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in the order of probability, will be you agree to some sort of temporary

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arrangement which. That happening? The answer to that is probably yes,

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it is in the interests of both sides. Whilst that's going on, will

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be be happy for the UK to negotiate and signed trade deals, probably

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less, and then the vexed question of who is in charge of any disputes on

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these things? At the moment it's the European Court of Justice, the UK is

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desperate to avoid the purview of that caught and they think they can

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do that, they may have a different view. This is a position paper, not

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policy and no position paper survives first engagement with the

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other side I suspect they will have a lot to say. Simon, for now, thank

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you. Interesting that David Davis covered a long and turbulent

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process, I think that is the truth. Simon, thank you.

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Let's take a look at some of the other stories making the news...

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The latest figures out of Germany show that Europe's largest economy

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expanded by 0.6% in the second quarter of the year.

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Economists were expecting a stronger rate of growth,

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but the strong euro contributed to a weakness in exports.

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Bill Gates has donated 5 percent of his fortune to an -

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The billionaire and Microsoft co-founder donated 64 million shares

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valued at $4.6 billion - that's according to a filing

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at the Securities Exchange Commission.

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It's the largest gift of Microsoft shares Gates has made since 2000.

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The boss of Intel- Brian Krzanich has become the third

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business leader to stand down from Donald Trump's manufacturing

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council following the events in Charlottesville.

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Neither he nor the chief executive of Under Armour, Kevin Plank,

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said their resignations were as a direct result

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of the incident, but Ken Frazier, the boss of the drugmaker Merck said

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that he needed to "feel a responsibility to take a stand

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US President Donald Trump has asked his country's top trade

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official to review China's practices regarding intellectual property.

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It could eventually lead to the US imposing trade sanctions.

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The BBC's Beijing Correspondent John Sudworth has more for us.

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It's interesting, very sensitive time to be doing this, at a time the

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US is relying on China to help deal with the North Korean nuclear

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threat. That's right, Trump himself has in the past connected to macro

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issues suggesting if China wants a good deal from the United States on

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trade it needs to do more to help on those diplomatic foreign policy

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issues. But signing this memorandum, possibly setting in train this

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investigation which could lead to unilateral sanctions, the President

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said this was all about trade, this is him delivering on campaign

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promises to stand up for US jobs and in particular to hold China to

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account. Of course China has long been accused of stealing US

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intellectual property as well as other trading partners because it

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insists on in many cases and in particular in certain strategic

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industries, enforcing those that want to come and do business here

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into local partnerships with local players and of course, once you're

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signed up to one of those, you know, your technology transfer, your

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intellectual property lakes across to the Chinese side. But all these

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been a concern and this is Donald Trump promising he will live up to

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his pledges during his campaign to do something about it. Many thanks.

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Let's take a look at the markets. As you can see, a bit of a return of an

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appetite for risk in global equities, Asian shares rallying, the

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dollar strengthening on Tuesday after a slight easing of tensions

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between the US and North Korea. Prompting investors to move back

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towards riskier assets which fell last week. McKay, boosted by growth

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figures out yesterday, the strongest Japan has seen two years, the

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stronger dollar against the yen boosting exports. US stocks

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recovering from the sell-off last week, the SNP by the hundred, the

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biggest single day percentage gain it has seen since April, technology

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shares including Apple giving the index its biggest boost. That

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positive sentiment has been setting the tone for the European markets.

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Perhaps not a stronger performance in London, certainly on the

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continent, Frankfurt as well reacting to the German growth

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figures out. Let's take a look at what Wall Street has in store.

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Here's Michelle Fleury. A lot of attention on Tuesday like many days

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of the week will be paid to the retail sector. The big economic data

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of the day as the retail sales report from the Department of

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commerce, it will measure the overall sector's performance for

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July and it is expected to show sales grew by 0.4% compared with

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last, that would be a distinct improvement on the zero growth shown

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in June. If numbers come in lower than that it may prompt some more

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worries about the health of US retail. But investors will have

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earnings from one of the nation's the DIY chains to mull over, home

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Depot reporting its second-quarter results. The company has suggested

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the quarter got off to a strong struts all investors will want to

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see that has continued. That was Michelle.

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Joining us is Mike Amey, Managing director and

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Nice to see you, we mentioned the German story, the largest economy in

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Europe growing by 6% of the second quarter, interesting all eyes on GDP

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around the world as we are trying to work out how far beyond that

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downturn we have come so far it doesn't leave Germany? The Europeans

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and Germany in particular have taken time to get going. Growth they are

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stuttering for a few years, seems to be on a pretty good trajectory and

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Germany one of the stronger economies in Europe, doing very

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well. I think it's good news, Germany and the European Union, the

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eurozone finally picking up on the upswing... Why has it taken so long?

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The main reason, their period of maximum economic pain was later than

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it was for the Brits and the US, ours was 2008-9, there is was 11-12,

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longer for the recovery to kick in there, their challenge period was

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more recently than ours. Investors watching and analysts watching for

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the UK inflation figures out later. Sure. UK inflation has been above

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where most of us would like it to be. Most expectations are for about

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seven, the long-term aim is about to macro and we know inflation is

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running at a higher rate than wages which is the big challenge for the

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UK and hope and -- hopefully we will see a peak soon. Analysts saying it

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will hit 3% before it falls back on the body keeps on going up. There is

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a challenge with forecasting the future, as we know. The Bank of

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England has the challenges we all have. I think the main reason the

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bank and we would agree with that, you will see its peak around the end

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of this year, is normally you find when sterling fell and it fell about

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a year ago it takes about a year or that to come through and higher

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prices that we pay for foreign goods and that is what we are seeing. For

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now, thank you. I know we will talk through some of the paper stories

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later. For now, thank you. I know we are going to talk about

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charging points for electric cars. Some of you have been in touch,

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Julie says a lack of charging points, the cars are silent to

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pedestrians, automatic cars, not manual but would like to try for

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environmental reasons. Keep your comments coming in using the BBC

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Business live hash tag. We'll speak to the man behind

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the UK's largest network of charging But are there enough

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to power our demand? You're with Business

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Live from BBC News. Commuters are braced

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for rises in rail fares... we'll find out how much

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prices will go up, linked The Government links

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the annual price rise with Let's speak to Economist

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Bronwyn Curtis. This is interesting, aside from the

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economic data and the economic impact of inflation it could really

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affect our pocket when it comes to real fares? Yes, an increase of

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three and a half percent is what we are expect in retail prices this

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month. A year ago it was under 2%, that's a huge jump and it's a huge

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jump in rail fares at the time when the consumer is struggling. Remember

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60% of the economy, they have run down savings to record lows, and

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consumer credit is up 10% over the year. This is just another squeeze

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and it comes at really the worst possible time. We should say the

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real fare increases will come into force in January next, the worst

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time, wages are not keeping up, prices for most of the things still

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rising and as we discussed, the Bank of England discussing it will go

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higher before it falls back. That's right, I think, if we see a peak, we

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are talking about a peak of 3%, the Bank of England is, in October for

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consumer prices. That means retail prices probably peaking just under

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4%. If they are right, unless sterling falls and we have heard

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David Davis talk about turbulent times ahead and usually sterling

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falls, that means inflation could go higher. If inflation is coming down

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but we have locked in those real prices at three and a half, say

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percent, for the next year, that seems pretty high and I wonder

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whether they shouldn't change the basis on which they calculate price

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rises in the real sector. Reticular it's a service, it has been

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appalling as we've heard all year. Thanks for shedding light on that,

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and on about 45 minutes we will find out how much prices will rise on the

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railways. They are for specific fares, so keep an eye on that,

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that's at 9:30am this morning. You're watching Business

:16:33.:16:47.

Live - our top story: The British Prime Minister, Theresa

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May, has published a blueprint for future trade relations

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between the UK and The government suggested creating

:16:52.:16:53.

an interim period of trade, saying that's one possible approach,

:16:54.:17:03.

would be a temporary customs union But remember there is a lot of

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negotiating still to go. A quick look at how

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markets are faring... We're told the future is electric -

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cars, vans and lorries around the world will be weaned off petrol

:17:20.:17:22.

and instead be powered There are now more than 2 million

:17:23.:17:25.

electric cars in the world. But the International Energy Agency

:17:26.:17:35.

predicts that number will hit 140 million by 2030,

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if countries are to meet Paris But what about the infrastructure

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needed to power them all? In the UK, the biggest network

:17:40.:17:49.

of electric charging points It works with BMW, Kia,

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Mercedes-Benz, Mitsubishi, David Martell is the founder and

:17:52.:17:54.

chief executive of Chargemaster. Nice to see you. The first thing

:17:55.:18:13.

that strikes me is working with so many brands, I know trying to plug

:18:14.:18:19.

in my tablet, my phone, they need different wires. Is there a

:18:20.:18:27.

universal plug? Not quite but it works. There's two types of

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charging, one is a relatively slow rate, and a universal standard

:18:34.:18:37.

called type II microcell all of the charges around the country have the

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type two socket. A rapid Charger is slightly more complex. All of the

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rapid Charger is we have on the network at Chargemaster have all of

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the cables on so many car can charge. A lot of people are getting

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in touch this morning. One of the things holding people back is that

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they will go on a journey, run out of power halfway there or cannot go

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on a journey because there's not the charging points there. How do you

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reassure people about that? The vast majority of cars coming on the

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market have 200 mile range, once you have that, you dispel all of the

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fears people have about charging and running out en route. There is

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sufficient battery chargers around the country, so you can drive from

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London to Bristol to Manchester, stop for maybe half an hour on the

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route and have a cup of coffee, exactly the same as you would in a

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petrol car. Is your own car and electric one? And what made you

:19:48.:19:52.

decide to take the switch? I haven't been in a petrol station for two

:19:53.:19:56.

years and that's a refreshing achievement. So what came first, you

:19:57.:20:05.

started using electric cars and then block the company up and running? I

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was motivated by providing the infrastructure for the

:20:13.:20:16.

electrification of transport. About ten years ago I came to the

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conclusion that motor manufacturers were going this way, needed to for

:20:21.:20:25.

air quality, climate change and so on, and the very fact I could see

:20:26.:20:31.

electric cars were nice to drive. If you have electric cars, you need

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infrastructure and I saw the opportunity to provide it. We have

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been asking for tweets from this because some people have

:20:40.:20:44.

reservations, money upfront, they can be more expensive than petrol

:20:45.:20:48.

and diesel cars. One person says my worry is finding a charging points

:20:49.:20:56.

and it is out of order. Years ago many of the charging points were

:20:57.:20:59.

supplied by local authorities who don't have the motivation to

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maintain them. Now companies such as Chargemaster have taken over and we

:21:05.:21:10.

have and 99.5 cent reliability record. When you roll out the

:21:11.:21:14.

infrastructure it's a real chicken and egg thing, isn't it? Do you need

:21:15.:21:21.

to see the demand from cars to put them in? Where do you make those

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decisions? It is a commercial decision that the end of the day.

:21:26.:21:31.

Chargemaster will put 5000 charging points out there in the next couple

:21:32.:21:36.

of years, there is already 13,000 across the country and we don't see

:21:37.:21:40.

it constrains to the growth of electric cars. There is so much more

:21:41.:21:44.

I want to ask, but time is tight this morning. David Martell, thank

:21:45.:21:52.

you for coming in. 70 years have passed

:21:53.:21:55.

since the end of the British Raj. Partition resulted in Muslims moving

:21:56.:21:58.

to the newly formed state of Pakistan and Hindus moving

:21:59.:22:00.

to independent India. Among the millions of people

:22:01.:22:02.

affected, the owner of one sweets franchise eventually managed

:22:03.:22:05.

to thrive in a new homeland. But it was a painful

:22:06.:22:07.

and challenging journey. We had three restaurants, and due to

:22:08.:22:09.

partition we had to move to Bombay. The memory cannot be wiped out

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entirely, and therefore the pain is still there. The mockery of the

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whole thing is it was not a question of either vision, so what was the

:23:18.:23:28.

cause of partition? Much more coverage of partition on the BBC

:23:29.:23:34.

throughout the day. We are talking about the business pages now. Uber

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is changing some of its rules, talk us throughout. Yes, I think they are

:23:46.:23:54.

trying to change the news flow on the country. They are changing the

:23:55.:24:02.

waiting times, all in favour of the driver. We will be allowed to tip

:24:03.:24:11.

within the app and drivers will be allowed to charge us if we don't

:24:12.:24:16.

turn up within two minutes, so they are trying to make it more

:24:17.:24:21.

attractive to the driving community. The group of drivers representing a

:24:22.:24:27.

lot of Uber drivers save this is pre-empting regulation. You are

:24:28.:24:30.

trying to sweeten the deal before regulation. That's right. I think

:24:31.:24:36.

the thing they are looking at is in the US and New York, where Uber did

:24:37.:24:42.

the same thing. They pre-empted regulatory change so they have been

:24:43.:24:46.

allowing this for a couple of months now in New York. I think there is a

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front running of some of the regulations, that's true to be

:24:51.:24:55.

honest with you. Shall we talk electric cars? Do you have an

:24:56.:25:03.

electric car? Yes. How do you find charging? Fine, it has over 200

:25:04.:25:08.

miles, with only had it a couple of months but we are delighted so far.

:25:09.:25:17.

A total convert? We still have a petrol car for long journeys and

:25:18.:25:22.

that is the challenge. I mentioned the tweet earlier, lack of charging

:25:23.:25:28.

points, who else do we have, will seems more enthusiastic, says it

:25:29.:25:33.

will save ?2000 in petrol every year so it is getting there. Silence for

:25:34.:25:40.

pedestrians is quite a big point actually. And the question of if it

:25:41.:25:50.

has a noise, what should the noise be. That's for another day. We will

:25:51.:25:57.

see you at the same time, the same place tomorrow. See you then,

:25:58.:25:58.

goodbye.

:25:59.:26:03.

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