16/08/2017 BBC Business Live


16/08/2017

Similar Content

Browse content similar to 16/08/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

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

:00:00.:00:12.

Brexit proposals: The UK government says there'll be no return to a hard

:00:13.:00:16.

Live from London, that's our top story.

:00:17.:00:35.

The British Government has unveiled its second

:00:36.:00:37.

Brexit position paper - looking to minimise disruption

:00:38.:00:40.

at the Irish border and let people and products flow freely

:00:41.:00:43.

between Northern Ireland and Ireland.

:00:44.:00:51.

Why Apple is making it harder for touts in Asia to profit

:00:52.:00:57.

European markets are looking like this in the first half hour of

:00:58.:01:06.

trade. More and more of us

:01:07.:01:08.

are globe-trotting alone, we speak to the founder of one firm

:01:09.:01:10.

who turned her own terrible travel Today we want to know about your

:01:11.:01:14.

travel highs and lows: tell us your stand-out experience

:01:15.:01:25.

while travelling the world? The British Government

:01:26.:01:28.

has unveiled its second Brexit position paper,

:01:29.:01:38.

ahead of negotiations in Brussels This time, it's about minimising

:01:39.:01:40.

disruption at the Irish border. Northern Ireland is the only part

:01:41.:01:46.

of the UK which will share a land border with an EU member state

:01:47.:01:50.

when the UK leaves the EU in 2019. Under one option the Government has

:01:51.:01:56.

proposed, there'd be no customs border at all between the UK

:01:57.:01:58.

and Ireland, enabling goods to flow freely between the Republic

:01:59.:02:02.

of Ireland and Northern Ireland. Protecting the Common

:02:03.:02:07.

Travel Area is key. Thanks to the current arrangement,

:02:08.:02:09.

people can move freely between Northern Ireland,

:02:10.:02:13.

the Republic and the rest of the UK This is important because,

:02:14.:02:15.

according to the Centre for Cross Border Studies,

:02:16.:02:22.

up to 30,000 people cross And the Central Statistics Office

:02:23.:02:24.

estimates the value of Ireland's exports to Britain has grown by 14 %

:02:25.:02:31.

to $8.5 billion so far this year. With us is Dr Paul Breen, Senior

:02:32.:02:40.

Lecturer, University of Westminster. Good to see you. Welcome to the

:02:41.:02:55.

programme. It is hard to overemphasise how important

:02:56.:02:59.

politically and economically there is an invisible border on the free

:03:00.:03:03.

flow of people and goods between the Republic of Ireland and Northern

:03:04.:03:09.

Ireland. In Ait is absolutely essential there is a detailed plan

:03:10.:03:13.

in place well in advance of March, 2019. Here in London, where we are

:03:14.:03:23.

now, we can get on the London underground March 2019, the morning

:03:24.:03:27.

after Brexit. For people living on the Irish border, it will affect

:03:28.:03:35.

them very dramatically. We need ideas now in place so that we can

:03:36.:03:41.

actually make sure there is a seamless and frictionless transition

:03:42.:03:46.

the morning after Brexit. You mentioned it would have an impact if

:03:47.:03:50.

suddenly there was a hard order and border checks. What would the

:03:51.:03:56.

potential effect of that be? There are at least 30,000 people who

:03:57.:03:59.

travel across the border back and forwards every day for work. Then

:04:00.:04:04.

there is the business impact. Northern Ireland relies very heavily

:04:05.:04:08.

on its trade with the Republic and vice versa. It is completely

:04:09.:04:13.

essential there is free movement of goods people. Otherwise we will end

:04:14.:04:16.

up in a very chaotic situation has to be planned in advance. 30,000

:04:17.:04:24.

bigger people crossing the border, that is probably a conservative

:04:25.:04:26.

estimate. That is probably people who travel for work. Then there are

:04:27.:04:29.

leisure travellers and people moving around the country. Another issue

:04:30.:04:33.

link to that is the fact that a lot of people in Northern Ireland to

:04:34.:04:37.

identify very strongly with Ireland as an entity, as a whole, the whole

:04:38.:04:42.

island. Culturally they also have a lot of activities and a lot of

:04:43.:04:45.

involvement with people on both sides of the border. For example Co

:04:46.:04:49.

Fermanagh, where I am originally from, is bored -- bordered by County

:04:50.:04:58.

Donegal. People would have interaction with neighbours across

:04:59.:05:02.

the border. Who has the final decision? You could have a situation

:05:03.:05:05.

where the UK Government and Irish fitment agree not having any border,

:05:06.:05:10.

no border checks, but then you have to get the agreement of the European

:05:11.:05:17.

Union well. -- Irish government. Everything has to be arranged within

:05:18.:05:21.

the parameters of the Good Friday Agreement. In the most recent

:05:22.:05:24.

statement the Government has emphasised that the peace process

:05:25.:05:28.

has to be prioritised. I think there can be no deal or no series of

:05:29.:05:35.

actions that would jeopardise the peace process and the terms of the

:05:36.:05:38.

Good Friday Agreement, which can't really be up for negotiation. Thank

:05:39.:05:43.

you very much. Interesting to get your thoughts. Thank you.

:05:44.:05:47.

Some of the other top business stories.

:05:48.:05:49.

Donald Trump has hit back at the business leaders who resigned

:05:50.:05:52.

from his manufacturing council in the last couple of days.

:05:53.:05:54.

So far six high profile figures, including the bosses of Intel,

:05:55.:05:57.

Merck and Under Armour, have left Mr Trump's panel

:05:58.:05:59.

in protest at the President's handling of the rally held by far

:06:00.:06:02.

At a press conference Mr Trump said the bosses in question were not

:06:03.:06:07.

Technology companies such as Microsoft and Cisco Systems have

:06:08.:06:11.

ramped up lobbying ahead of talks to renegotiate the North American

:06:12.:06:14.

The firms are looking to avoid any future restrictions on cloud storage

:06:15.:06:21.

and to promote an international pact to eliminate technology

:06:22.:06:25.

The US, Mexican and Canadian negotiators are due to start talks

:06:26.:06:29.

on the 23-year-old trade pact on Wednesday.

:06:30.:06:36.

US wholesaler Costco is facing a $19 million bill in damages

:06:37.:06:39.

after the jewellery chain Tiffany sued it for infringing

:06:40.:06:41.

It accused Costco of selling "Tiffany" engagement rings,

:06:42.:06:44.

but Costco disputed the claim, saying "Tiffany" is

:06:45.:06:46.

The court ruled however that it must call them

:06:47.:06:53.

I am sorry. You will set me off in a minute. Plenty of news on the

:06:54.:07:16.

business live page. On there now, they are taking the nuts away. No

:07:17.:07:24.

more nuts on Walnut whips. This is Nestle is saying that to cut costs

:07:25.:07:28.

they are taking the nut from the new versions of the classic Walnut Whip.

:07:29.:07:35.

As the director points out it is now just a whip. Controversially, I

:07:36.:07:38.

never liked the nut on the top anyway. It is music to my ears. We

:07:39.:07:49.

have also been asking about your views on travelling the world solo.

:07:50.:07:55.

Mel says, massive hydraulic your own comment meeting the best people you

:07:56.:07:59.

will ever meet. Below is seeing how people live in different countries.

:08:00.:08:03.

Maybe suggesting people living in poverty forced up Karen says, I love

:08:04.:08:07.

it. Meeting new people and choosing my own adventure. Some of the best

:08:08.:08:10.

holidays ever. Keep your comments coming in.

:08:11.:08:13.

Apple is attempting to crack down on touts buying new iPhones

:08:14.:08:16.

in Hong Kong and selling on the Chinese black market.

:08:17.:08:19.

There are a number of reasons. The first reason is Hong Kong's lower

:08:20.:08:39.

taxes and duties are offering a powerful incentive for people

:08:40.:08:45.

offering a quick. Every year after an iPhone delays they pop up in Hong

:08:46.:08:49.

Kong and now sold on the black market. They are sold to tourists or

:08:50.:08:54.

across the border, to mainland China, but customers who are willing

:08:55.:08:59.

-- unwilling to wait for them to become available there. This does

:09:00.:09:03.

not happen any more. From yesterday you can no longer return or exchange

:09:04.:09:08.

any Apple products online in Hong Kong unless they are defective. The

:09:09.:09:13.

previous policy allowed 14 days for products to be returned in the city.

:09:14.:09:18.

This change in policy is very timely. Apple is expected to unveil

:09:19.:09:23.

its new iPhone models later this year. It is a hotly anticipated

:09:24.:09:29.

tenth anniversary edition and is supposed to have a completely

:09:30.:09:33.

overhauled look. It is just in time for this. Really interesting story

:09:34.:09:37.

as Apple gets tough on the touts. There's been a decent

:09:38.:09:40.

rebound in markets over the last couple of days

:09:41.:09:42.

after tensions calmed Money moving back into some riskier

:09:43.:09:44.

assets but we're still not back to where we were last week,

:09:45.:09:48.

suggesting there's still a lot This evening's minutes from the US

:09:49.:09:56.

Fed are likely to give markets a taste of what was discussed

:09:57.:10:04.

at the July meeting between Fed members and some indication

:10:05.:10:07.

of rate rise timings. In Europe today we're

:10:08.:10:16.

watching for confirmation of the EU GDP number -

:10:17.:10:18.

expected to show growth of 0.6%. And hot on the heels of yesterday's

:10:19.:10:23.

inflation data in the UK, showing the Consumer Prices Index

:10:24.:10:26.

held steady at 2.6%. Today we get the unemployment stats,

:10:27.:10:30.

including average earnings, which should give some insight

:10:31.:10:38.

into whether wages are keeping More on that in a moment,

:10:39.:10:41.

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

:10:42.:10:45.

of the day ahead on Wall Street. The US Federal reserve will release

:10:46.:10:48.

the minutes from its past policy At that meeting policymakers

:10:49.:10:51.

unanimously decided to keep interest rates unchanged and planned

:10:52.:10:55.

to reduce the massive bond holdings In other news, American retailer

:10:56.:11:00.

Target will be reporting earnings. Last month, Target said it

:11:01.:11:05.

expects sales to increase which would be the first such rise

:11:06.:11:08.

in five quarters. It will thanks to improved customer

:11:09.:11:12.

traffic and sales trends and the company has also invested

:11:13.:11:18.

very heavily in keeping prices low and improving

:11:19.:11:21.

its e-commerce business. And finally, Cisco Systems

:11:22.:11:24.

is also reporting earnings. The world's largest networking gear

:11:25.:11:26.

maker will likely report another fall in revenue as declines

:11:27.:11:30.

in its legacy hardware business outweigh gains

:11:31.:11:33.

from its new divisions Joining us is Lucy MacDonald,

:11:34.:11:36.

Chief Investment Officer, Global Equities at Allianz Global

:11:37.:11:42.

Investors. Welcome. This morning, interestingly

:11:43.:11:54.

from the IMF about China's being filled much by debt. That is exactly

:11:55.:12:02.

the case was that we are seeing debt everywhere in the world as being the

:12:03.:12:07.

major determinant of growth. That has been the case since the

:12:08.:12:10.

financial crisis, but particularly so in China, which has really driven

:12:11.:12:18.

excess growth, over 6%. That has helped the rest of the world, for

:12:19.:12:22.

sure. Pointing out this debt is there and will need to be financed

:12:23.:12:28.

over time is a good caution, I think. It is a common picture around

:12:29.:12:33.

the world, the growth is fuelled by debt. Where is the dividing line?

:12:34.:12:38.

Read as a become manageable and healthy to keep the economy growing,

:12:39.:12:42.

and being into dangerous territory? We had a very clear number at 90% of

:12:43.:12:49.

GDP. That proved to be not entirely clear that it was an exact number.

:12:50.:12:53.

We are now in the hundreds of percent. 250% we are talking in

:12:54.:13:00.

China and similar levels house where in the world. It comes down to the

:13:01.:13:05.

ability to finance that debt. That is affected by how close the economy

:13:06.:13:14.

is in China. It is a very close economy. It is relatively easy to

:13:15.:13:18.

control and a similar picture in Japan as well. The central banks now

:13:19.:13:28.

own a faith of the overall debt. There certainly are major holders of

:13:29.:13:33.

it. It does depend on the structure, the majority of the debt and who the

:13:34.:13:39.

holders are, how manageable it is. We are in totally new territory as

:13:40.:13:44.

far as the levels are concerned. Interesting. Thank you very much. I

:13:45.:13:48.

know you will talk this through some of the newspaper stories later. For

:13:49.:13:49.

now, thank you. We'll meet the founder of one firm

:13:50.:13:51.

who turned her own terrible travel You're with Business

:13:52.:13:56.

Live from BBC News. We'll get the latest economic update

:13:57.:14:09.

for the UK this morning, with the latest unemployment figures

:14:10.:14:13.

due out shortly. Wages are still expected to be

:14:14.:14:18.

falling behind inflation, which we found out

:14:19.:14:20.

yesterday came in at 2.6%. Let's speak to Professor Geraint

:14:21.:14:25.

Johnes from Lancaster University. I suppose that is always the issue

:14:26.:14:40.

for the regardless of unemployment figures, wages are not going up and

:14:41.:14:44.

people are feeling the squeeze. That is right. We do not know what

:14:45.:14:48.

today's figure is will bring. If they are in line with what we have

:14:49.:14:51.

been seeing over the last couple of years we can expect to see a further

:14:52.:14:56.

rise in employment, possibly a fall in the unemployment rate. We will

:14:57.:15:02.

see very little Joy on pay. The CIP de brought out a survey earlier this

:15:03.:15:13.

week saying employment was still set to grow over the coming months that

:15:14.:15:16.

there was very little action on pay. That is in line with the information

:15:17.:15:18.

we have from the bank of England's agents reports. Over the last ten

:15:19.:15:21.

years or so we have seen implement grow from 29 million to 32 million,

:15:22.:15:25.

huge increase in employment. Output in the economy has not grown as

:15:26.:15:30.

rapidly. That means productivity growth has been sluggish and that is

:15:31.:15:35.

not enabling firms toward paying creases, also essential pay

:15:36.:15:38.

increases, two employees. There is also a significant availability of

:15:39.:15:43.

labour. Normally would we would suggest that when unemployment is

:15:44.:15:47.

falling it is more difficult to find workers. That means there is

:15:48.:15:52.

pressure for employers to put up what they pay. Yellow macro ten

:15:53.:15:57.

years ago we had 30% of all workers were self-employed. -- Ten years

:15:58.:16:04.

ago. 27% are now part-time. Many of those want to work longer hours than

:16:05.:16:08.

they currently have. There is an increased availability of labour. We

:16:09.:16:12.

are seeing that as well at the top end of the age range. There are a

:16:13.:16:17.

lot of older workers now wanting to remain in employment. Good to talk

:16:18.:16:18.

to you. The business live page is updated

:16:19.:16:31.

through the day. Balfour Beatty has seen profits for the first half of

:16:32.:16:37.

this year doubled to ?20 million and the Chief Executive credit it to

:16:38.:16:39.

winning a series of large infra structure projects.

:16:40.:16:48.

The news that the British government is to unveil its second Brexit

:16:49.:17:00.

battle, how to minimise the disruption between the Irish

:17:01.:17:04.

Republic and Northern Ireland of course to maintain relations and

:17:05.:17:09.

trade links and the passage of people across that border. They have

:17:10.:17:13.

laid out a number of options but it is still very early days in the

:17:14.:17:15.

negotiations. A quick look at how

:17:16.:17:17.

markets are faring. That is what the pound will get you

:17:18.:17:23.

against the dollar. Ever fancied travelling the world

:17:24.:17:26.

with just a backpack for company? But what if you wanted some

:17:27.:17:28.

like-minded travel companions Well, our next guest

:17:29.:17:31.

founded her travel firm, Flash Pack, The market for solo travel

:17:32.:17:36.

is booming, especially 30 and 40-year-old singletons

:17:37.:17:43.

with disposable income. According to UK travel body ABTA,

:17:44.:17:47.

nearly one in six Britons - that's 15% of the population -

:17:48.:17:50.

have travelled alone. Despite safety worries,

:17:51.:17:53.

a TripAdvisor survey of more than 9,000 women showed that 74% had

:17:54.:17:55.

already travelled alone in 2015. Radha Vyas is co-founder

:17:56.:18:02.

and Chief Executive of Flash Pack - Welcome to the programme. Let's

:18:03.:18:19.

start with how it began because we touched on a bit of your story, a

:18:20.:18:23.

terrible travel experience and you thought there had to be a better way

:18:24.:18:26.

of doing it so how did it come about? I was single and in my 30s

:18:27.:18:32.

and like many people working long hours and feeling overwhelmed and I

:18:33.:18:36.

needed some adventure and fun in my life. For the first am I could not

:18:37.:18:40.

find anyone to go on holiday with and being in my 30s a lot of friends

:18:41.:18:45.

were settling down or getting married or busy with their own

:18:46.:18:48.

careers and a friend said I should go on a group tour. This was the

:18:49.:18:53.

first time the concept came on my radar, I did not know what one was,

:18:54.:18:59.

that it was available for some of my age so I was intrigued. I had always

:19:00.:19:04.

travelled solo and was craving company so I started researching and

:19:05.:19:07.

realised the mass group tour companies were predominantly

:19:08.:19:13.

catering to young budget backpackers with a focus on partying or the more

:19:14.:19:17.

luxurious ones for the 65 and over market and I was in between. I

:19:18.:19:22.

wanted adventure and a dynamic itinerary put the boutique hotel at

:19:23.:19:26.

the end of the day also the problem is the expense, travelling solo you

:19:27.:19:30.

pay a single room supplement and your trip can be incredibly

:19:31.:19:33.

expensive so how does what you have set up deal with that, if at all? I

:19:34.:19:39.

understand it from both sides. It feels a bit like discrimination if

:19:40.:19:42.

you are travelling solo but equally the hotels need to earn a certain

:19:43.:19:47.

margin and if you are renting a room on Airbnb, you would not expect to

:19:48.:19:52.

have half the rent is a single person was renting from you. We do

:19:53.:19:57.

not enforce a single supplement and we give you a chance to share a room

:19:58.:20:01.

with somebody you would get on with. You get to experience a nice hotel

:20:02.:20:04.

and share the cost with somebody. And when you're travelling around

:20:05.:20:09.

the world, it is about meeting like-minded people. It is sort of

:20:10.:20:13.

not solo travel in some respects because you are with a group when

:20:14.:20:16.

you are out there but how do you make sure you find a like-minded

:20:17.:20:21.

group? There are certainly different interpretations of what a holiday is

:20:22.:20:25.

or could be so how do you get similar people on the tours? We only

:20:26.:20:31.

cater to people in their 30s and 40s and 90% of our customers come on

:20:32.:20:35.

their own. A couple of people come with a friend but most on their own

:20:36.:20:41.

and most are single, busy professionals at the same life

:20:42.:20:44.

stage. They already have a lot in common, everybody is up for an

:20:45.:20:48.

adventure and meeting new people to the probability of getting on with

:20:49.:20:52.

people is high. And we talked about experiences and we have been asking

:20:53.:20:57.

people to send us highs and lows and it strikes me the world is a much

:20:58.:21:02.

smaller place now. You can do most places, do most things, if there are

:21:03.:21:06.

still some work on your list you have not ticked off or places you

:21:07.:21:12.

could not offer at all? North Korea for example, but there is still

:21:13.:21:16.

demand. Absolutely and we started the company by offering really

:21:17.:21:19.

cutting edge destinations like Sierra Leone also my husband and I

:21:20.:21:26.

have both been to over 100 destinations between us but there

:21:27.:21:29.

are still so many more, I would love to go to South Korea, to Iran,

:21:30.:21:34.

places in South America I would like to explore and North America. There

:21:35.:21:39.

are a few places that we do a void just because of the risk. I would

:21:40.:21:44.

love to do hiking in north Korea but it is just not possible right now.

:21:45.:21:49.

We have been asking for people to share their highs and lows and we

:21:50.:21:52.

have had some fantastic ones. This is from Maria her with a koala,

:21:53.:21:58.

saying it was her highlight in Australia. And this one says the

:21:59.:22:09.

edge of the Moon Valley called Paradise on Earth. A lot of people

:22:10.:22:15.

sharing. And similar themes, Philip says travelling solo lets to be a

:22:16.:22:20.

version of yourself you never knew, that idea of discovery and Jeff said

:22:21.:22:26.

it is easier to meet new people. He also says the load that sometimes it

:22:27.:22:30.

can be lonely and you don't get to share the memories. -- the low. Do

:22:31.:22:37.

you find people stay in touch after the trip? So many people do. When

:22:38.:22:41.

you are backpacking alone in your 20s you can stay in hostels and it

:22:42.:22:45.

is easy to meet other travellers but in your 30s and 40s you might want

:22:46.:22:48.

to stay in hotels and it is harder to meet people and that is when a

:22:49.:22:53.

group tour situation comes onto your radar and people start researching

:22:54.:22:56.

our company. What we're finding interesting is that people do stay

:22:57.:23:00.

in touch for long periods. We have had a couple of people who have

:23:01.:23:04.

become housemates in London after meeting on one of our adventures. We

:23:05.:23:09.

have now launched these mini experiences all across London and we

:23:10.:23:15.

are about launch in New York where you can experience a Flash Pack

:23:16.:23:18.

adventure in one day, joining a Jordanian supper club for example.

:23:19.:23:23.

We are seeing customers using that as an excuse to meet each other

:23:24.:23:28.

again. Any marriages yet?! No matchmaking! Really nice to see you.

:23:29.:23:32.

In a moment we'll take a look through the business pages but first

:23:33.:23:35.

here's a quick reminder of how to get in touch with us.

:23:36.:23:40.

The business life page is where you can stay ahead with all the breaking

:23:41.:23:46.

businesses of the day keep up-to-date with the latest details

:23:47.:23:50.

with insight and analysis from the BBC's team of editors around the

:23:51.:23:54.

world. And we want to hear from you as well, get involved on our web

:23:55.:24:03.

page. And on Twitter and you can find us on Facebook. Business Live,

:24:04.:24:11.

on TV and online whenever you need to know.

:24:12.:24:11.

What other business stories has the media been

:24:12.:24:13.

Lucy MacDonald, CIO, Global Equities at Allianz Global Investors

:24:14.:24:17.

One in the Washington Post, Trump tried to save their jobs that they

:24:18.:24:28.

were quitting anyway. Two element here, what is the fact there is

:24:29.:24:32.

enough confidence in the labour market for people to want to move

:24:33.:24:37.

around but the other, the underlying theme, is this substitution of

:24:38.:24:42.

capital labour, automation, and whether anything can be done to keep

:24:43.:24:50.

these jobs in the longer term with manufacturing being a dwindling part

:24:51.:24:54.

of the economy. And the crux of this, Trump said we need

:24:55.:24:57.

manufacturing jobs and these blue-collar workers to stay in the

:24:58.:25:01.

States but what the article makes clear is that America is moving away

:25:02.:25:06.

from these for nonpolitical reasons. And it is not just America, it is

:25:07.:25:11.

everywhere where economies are developing. The other issue is that

:25:12.:25:15.

even within manufacturing, the educational level required for the

:25:16.:25:21.

workers is rising because you are getting more technology in

:25:22.:25:24.

manufacturing and software and so the kind of people you need need to

:25:25.:25:30.

be more white-collar. You also are getting more automation. It is all

:25:31.:25:36.

changing and you can cushion that to some extent but you cannot really

:25:37.:25:40.

hold it back over time. Interesting given the renegotiations happening

:25:41.:25:47.

on Nafta between the US, Canada and Mexico. Lucy, good to see you.

:25:48.:25:49.

Thank you for all your messages as well. We will be back tomorrow.

:25:50.:25:56.

Goodbye. Good morning, rather chilly start

:25:57.:26:12.

across many parts of the UK, some clear skies overnight. That

:26:13.:26:15.

translated into sunshine for many parts through today come gradually

:26:16.:26:21.

we will see some rain spreading from the West. Ahead of that,

:26:22.:26:22.

Download Subtitles

SRT

ASS