15/08/2017 BBC Business Live


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


The UK government pushes for a frictionless trade deal


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


Live from London, that's our top story


The British government has laid out it's strategy


for trade with the EU - calling for a temporary customs


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


Also in the programme Donald Trump puts America first -


opening an investigation into whether China is stealing


Intellectual Property from American firms.


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


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


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


And is a lack of charging points holding back growth


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


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


If you drive - would you go electric?


Let us know, use the hashtag BBC Biz Live.


The British Prime Minister Theresa May has this morning,


published a blueprint for future trade relations between the UK


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


creating an interim period of trade, saying one possible approach


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


That means they would continue applying the same tariffs to goods


from outside the union - which can then move between them


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


period will give importers and exporters enough time to adjust


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


the government has suggested either creating a brand


new arrangement that includes a new customs border...


or a special partnership which would negate the need


Brexit Secretary David Davis spoke to the BBC earlier.


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


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


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


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


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


the UK? With me is our Business


Editor Simon Jack. It sounds very good in theory but


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


substantive trade deal until you know what the UK relationship with


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


policy and no position paper survives first engagement with the


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


you. Interesting that David Davis covered a long and turbulent


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


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


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


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


Economists were expecting a stronger rate of growth,


but the strong euro contributed to a weakness in exports.


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


The billionaire and Microsoft co-founder donated 64 million shares


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


at the Securities Exchange Commission.


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


The boss of Intel- Brian Krzanich has become the third


business leader to stand down from Donald Trump's manufacturing


council following the events in Charlottesville.


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


said their resignations were as a direct result


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


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


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


official to review China's practices regarding intellectual property.


It could eventually lead to the US imposing trade sanctions.


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


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


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


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


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


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


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


investigation which could lead to unilateral sanctions, the President


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


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


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


intellectual property as well as other trading partners because it


insists on in many cases and in particular in certain strategic


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


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


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


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


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


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


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


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


dollar strengthening on Tuesday after a slight easing of tensions


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


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


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


stronger dollar against the yen boosting exports. US stocks


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


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


shares including Apple giving the index its biggest boost. That


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


Perhaps not a stronger performance in London, certainly on the


continent, Frankfurt as well reacting to the German growth


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


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


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


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


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


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


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


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


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


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


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


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


see that has continued. That was Michelle.


Joining us is Mike Amey, Managing director and


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


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


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


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


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


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


Germany one of the stronger economies in Europe, doing very


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


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


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


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


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


more recently than ours. Investors watching and analysts watching for


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


environmental reasons. Keep your comments coming in using the BBC


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


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


to power our demand? You're with Business


Live from BBC News. Commuters are braced


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


prices will go up, linked The Government links


the annual price rise with Let's speak to Economist


Bronwyn Curtis. This is interesting, aside from the


economic data and the economic impact of inflation it could really


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


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


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


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


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


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


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


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


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


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


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


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


consumer prices. That means retail prices probably peaking just under


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


David Davis talk about turbulent times ahead and usually sterling


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


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


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


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


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


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


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


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


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


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


May, has published a blueprint for future trade relations


between the UK and The government suggested creating


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


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


negotiating still to go. A quick look at how


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


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


and instead be powered There are now more than 2 million


electric cars in the world. But the International Energy Agency


predicts that number will hit 140 million by 2030,


if countries are to meet Paris But what about the infrastructure


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


of electric charging points It works with BMW, Kia,


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


was motivated by providing the infrastructure for the


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


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


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


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


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


been asking for tweets from this because some people have


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


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


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


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


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


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


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


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


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


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


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


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


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


you for coming in. 70 years have passed


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


to the newly formed state of Pakistan and Hindus moving


to independent India. Among the millions of people


affected, the owner of one sweets franchise eventually managed


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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




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