16/08/2017 BBC Business Live


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


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


Live from London, that's our top story.


The British Government has unveiled its second


Brexit position paper - looking to minimise disruption


at the Irish border and let people and products flow freely


between Northern Ireland and Ireland.


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


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


trade. More and more of us


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


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


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


while travelling the world? The British Government


has unveiled its second Brexit position paper,


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


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


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


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


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


and Ireland, enabling goods to flow freely between the Republic


of Ireland and Northern Ireland. Protecting the Common


Travel Area is key. Thanks to the current arrangement,


people can move freely between Northern Ireland,


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


according to the Centre for Cross Border Studies,


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


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


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


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


programme. It is hard to overemphasise how important


politically and economically there is an invisible border on the free


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


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


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


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


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


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


actually make sure there is a seamless and frictionless transition


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


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


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


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


there is the business impact. Northern Ireland relies very heavily


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


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


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


bigger people crossing the border, that is probably a conservative


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


leisure travellers and people moving around the country. Another issue


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


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


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


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


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


Donegal. People would have interaction with neighbours across


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


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


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


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


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


statement the Government has emphasised that the peace process


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


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


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


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


Some of the other top business stories.


Donald Trump has hit back at the business leaders who resigned


from his manufacturing council in the last couple of days.


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


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


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


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


Technology companies such as Microsoft and Cisco Systems have


ramped up lobbying ahead of talks to renegotiate the North American


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


and to promote an international pact to eliminate technology


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


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


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


after the jewellery chain Tiffany sued it for infringing


It accused Costco of selling "Tiffany" engagement rings,


but Costco disputed the claim, saying "Tiffany" is


The court ruled however that it must call them


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


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


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


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


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


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


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


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


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


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


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


holidays ever. Keep your comments coming in.


Apple is attempting to crack down on touts buying new iPhones


in Hong Kong and selling on the Chinese black market.


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


taxes and duties are offering a powerful incentive for people


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


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


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


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


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


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


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


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


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


tenth anniversary edition and is supposed to have a completely


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


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


rebound in markets over the last couple of days


after tensions calmed Money moving back into some riskier


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


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


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


at the July meeting between Fed members and some indication


of rate rise timings. In Europe today we're


watching for confirmation of the EU GDP number -


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


inflation data in the UK, showing the Consumer Prices Index


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


including average earnings, which should give some insight


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


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


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


the minutes from its past policy At that meeting policymakers


unanimously decided to keep interest rates unchanged and planned


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


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


expects sales to increase which would be the first such rise


in five quarters. It will thanks to improved customer


traffic and sales trends and the company has also invested


very heavily in keeping prices low and improving


its e-commerce business. And finally, Cisco Systems


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


maker will likely report another fall in revenue as declines


in its legacy hardware business outweigh gains


from its new divisions Joining us is Lucy MacDonald,


Chief Investment Officer, Global Equities at Allianz Global


Investors. Welcome. This morning, interestingly


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


who turned her own terrible travel You're with Business


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


for the UK this morning, with the latest unemployment figures


due out shortly. Wages are still expected to be


falling behind inflation, which we found out


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


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


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


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


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


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


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


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


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


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


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


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


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


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


not enabling firms toward paying creases, also essential pay


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


labour. Normally would we would suggest that when unemployment is


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


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


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


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


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


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


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


to you. The business live page is updated


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


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


winning a series of large infra structure projects.


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


battle, how to minimise the disruption between the Irish


Republic and Northern Ireland of course to maintain relations and


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


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


negotiations. A quick look at how


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


against the dollar. Ever fancied travelling the world


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


like-minded travel companions Well, our next guest


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


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


with disposable income. According to UK travel body ABTA,


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


have travelled alone. Despite safety worries,


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


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


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


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


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


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


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


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


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


were settling down or getting married or busy with their own


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


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


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


travelled solo and was craving company so I started researching and


realised the mass group tour companies were predominantly


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


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


wanted adventure and a dynamic itinerary put the boutique hotel at


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


pay a single room supplement and your trip can be incredibly


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


and most are single, busy professionals at the same life


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


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


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


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


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


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


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


demand. Absolutely and we started the company by offering really


cutting edge destinations like Sierra Leone also my husband and I


have both been to over 100 destinations between us but there


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


group tour situation comes onto your radar and people start researching


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


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


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


have now launched these mini experiences all across London and we


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


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


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


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


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


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


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


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


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


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


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


on TV and online whenever you need to know.


What other business stories has the media been


Lucy MacDonald, CIO, Global Equities at Allianz Global Investors


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


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


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


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


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


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


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


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


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


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


everywhere where economies are developing. The other issue is that


even within manufacturing, the educational level required for the


workers is rising because you are getting more technology in


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


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


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


hold it back over time. Interesting given the renegotiations happening


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


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


Goodbye. Good morning, rather chilly start


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


translated into sunshine for many parts through today come gradually


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


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