21/08/2017 BBC Business Live


21/08/2017

Similar Content

Browse content similar to 21/08/2017. 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.:00:09.

Walking a trade tightrope - round one of talks between the US,

:00:10.:00:13.

But can the three nations do what it takes to hold Nafta together?

:00:14.:00:19.

Live from London, that's our top story today,

:00:20.:00:20.

The trading relationship is worth more than a trillion dollars a year,

:00:21.:00:44.

so can the members of Nafta bridge their differences

:00:45.:00:47.

Also in the programme, the world's biggest oil producer

:00:48.:00:50.

gets cosy with it's fastest growing consumer, as Russia's Rosneft spends

:00:51.:00:54.

Asian markets were down, with Japan at its lowest level

:00:55.:01:04.

in four months over concerns for President Trump's

:01:05.:01:06.

Europe is looking like this in the first half hour of trade.

:01:07.:01:15.

And from Bumble to babies - we'll meet the woman who's behind

:01:16.:01:18.

a networking app for new mums called Peanut to help them

:01:19.:01:21.

Elon Musk has today issued a stark warning

:01:22.:01:27.

about the risks of killer robots in the future.

:01:28.:01:29.

Today, we want to know if you think Terminator type robots could be more

:01:30.:01:32.

fact than fiction in the not too distant future?

:01:33.:01:36.

We will get to the Nafta trade deal in a minute,

:01:37.:01:55.

because we have just had some breaking business news.

:01:56.:01:59.

Reuters News agency is reporting that China's Great Wall Motor

:02:00.:02:01.

company is looking into making an offer for all or part

:02:02.:02:04.

A big deal between two potentially huge car-makers making one even

:02:05.:02:14.

bigger one. The agency sites two sources that

:02:15.:02:18.

say the Chinese company has asked to meet with its US-European rival

:02:19.:02:21.

about purchasing part We have been hearing potential

:02:22.:02:31.

reports of this for a while. The Chinese company could be interested

:02:32.:02:38.

in buying the Jeep brand, one of Fiat Chrysler's most lucrative. We

:02:39.:02:43.

will keep a close eye whether Fiat Chrysler ends up with a new owner.

:02:44.:02:49.

We're talking trade today as the US, Canada and Mexico finish their first

:02:50.:02:52.

round of talks to overhaul North America's free trade

:02:53.:02:54.

It comes after President Trump threatened to scrap the pact -

:02:55.:02:59.

saying it's been a disaster for US workers.

:03:00.:03:03.

The countries have pledged to reach an agreement by early next year,

:03:04.:03:08.

but some trade experts have warned it could take much longer.

:03:09.:03:10.

The US says it wants new promises that more vehicles

:03:11.:03:15.

At the moment just over 62% of each vehicle must come from one

:03:16.:03:20.

of the three countries, but the US hasn't yet explained how

:03:21.:03:23.

it wants this changed to boost its own automotive sector.

:03:24.:03:32.

With me is Cailin Birch, global analyst at the Economist

:03:33.:03:34.

Welcome to the programme. Which is the most challenging for them to

:03:35.:03:51.

reach a consensus? There are a number of areas that could be

:03:52.:03:56.

promising for a potential agreement. One of the automotive industry. We

:03:57.:04:02.

are seeing some disagreement about what the mechanisms will look like

:04:03.:04:05.

for future trade disputes across the board. That is something that could

:04:06.:04:10.

potentially be disruptive for the US- Canada relationship given that

:04:11.:04:16.

there is a border in timber to begin with. We have seen some

:04:17.:04:20.

disagreements between timber and dairy exports. They have just

:04:21.:04:25.

finished the first round of talks. It would've been nice to be sitting

:04:26.:04:28.

here talking about whatever breakthrough they have made,

:04:29.:04:32.

whatever deal been done. But we are still talking about the hurdles and

:04:33.:04:36.

challenges. Would it have been expecting too much to see much

:04:37.:04:41.

progress after round one? I do. The parties came in with different

:04:42.:04:55.

negotiating tactic macro. -- tax. The US started on a very difficult

:04:56.:04:59.

negotiating tactic where they wanted to reverse the agreement and not

:05:00.:05:06.

just changes around the margin. President Trump said it didn't work

:05:07.:05:10.

for American workers. How much does -- has that raised the stakes in

:05:11.:05:14.

coming to a deal and a deal that works specifically for the United

:05:15.:05:19.

States? Like you said, he has approached most of the major

:05:20.:05:25.

legislative questions with the exact same tactic, where he makes a bunch

:05:26.:05:30.

of sweeping statements that would imply major changes. For example,

:05:31.:05:37.

with health care there was a very sweeping, let's toss it out and hope

:05:38.:05:41.

we can come up with a new programming two years because we

:05:42.:05:46.

will have a gun to our head, essentially. Eventually lawmakers

:05:47.:05:49.

were able to scale back. We will see a more reasoned response when we get

:05:50.:05:52.

into the negotiations in round three. It is not going to benefit

:05:53.:05:58.

any parties in the agreement if Nafta is to be dissolved or if it is

:05:59.:06:04.

to be rushed as well. Another major thing to mention is that health care

:06:05.:06:09.

probably failed because the timing was so short to come up with such a

:06:10.:06:14.

dramatic change. Nafta is much older than health care. The conditions are

:06:15.:06:19.

very different. But to rush negotiations of such an important

:06:20.:06:23.

trade agreement, where there is a soft deadline of the end of 2017, is

:06:24.:06:28.

pretty unrealistic. Thank you. Let's take a look at some of

:06:29.:06:31.

the other stories making the news. The UK Government will publish its

:06:32.:06:54.

pre-position paper on Brexit. The average pay packet for a FTSE 100

:06:55.:06:58.

brokers has risen by 20% in the past year. The figure fell to $4.5

:06:59.:07:05.

million. It appears that policies which were introduced appear to be

:07:06.:07:07.

working. Elon Musk and other technology

:07:08.:07:10.

leaders have issued a stark warning about so-called "killer robots",

:07:11.:07:13.

urging the United Nations to act In an open letter to the UN,

:07:14.:07:15.

they say lethal autonomous weapons threaten a "third

:07:16.:07:22.

revolution in warfare". More than 100 robotics

:07:23.:07:24.

and artificial intelligence industry Mr Musk has long spoken

:07:25.:07:28.

out about the dangers Pretty terrifying thought. I don't

:07:29.:07:45.

like the idea of killer robots. Maybe that is stating the obvious.

:07:46.:07:50.

We have been asking you how you feel about killer robots. Robots in

:07:51.:07:55.

general, not just killer robots! Send us your tweets. That is what

:07:56.:08:01.

David has done. He only fears them taking over at BBC business life. So

:08:02.:08:04.

do we! Also today, a big

:08:05.:08:06.

money deal for oil. The Russian oil giant Rosneft is set

:08:07.:08:10.

to announce a $13 billion deal to buy Indian private refiner

:08:11.:08:13.

Essar Oil. The deal would give Rosneft access

:08:14.:08:18.

to the world's fastest Essar Oil has 3,000

:08:19.:08:21.

petrol stations in India. Sameer Hashmi is in Mumbai, he's

:08:22.:08:30.

been following the story for us. Tauqir us through this deal?

:08:31.:08:39.

Potentially brings together a huge market for consumers and one of the

:08:40.:08:44.

world's biggest oil providers. It seems like a win, win. That is how

:08:45.:08:50.

both sides have been selling the deal. There were various issues. As

:08:51.:08:58.

far as the Russians are concerned, this deal gives them access to one

:08:59.:09:01.

of the largest fuel consumer market in the world. India, as you know,

:09:02.:09:09.

consumes a lot of oil. The demand has been increasing. It relies a lot

:09:10.:09:16.

on imports. What is going to happen with this deal is they will get

:09:17.:09:22.

access to this market. Esser already has a huge refinery where it

:09:23.:09:27.

produces 400,000 barrels of oil a day. 3000 retail units is something

:09:28.:09:34.

they will get with this deal. For Esser this deal is also important

:09:35.:09:38.

because it is a huge conglomerate in India with huge debts. So by selling

:09:39.:09:43.

this company there will be able to write off this debt. That is one of

:09:44.:09:46.

the reasons why this deal got delayed. A lot of lenders were

:09:47.:09:51.

blocking this deal. They wanted the debt paid beforehand. That is why it

:09:52.:09:58.

has taken so much time. But it has finally happened. It will be

:09:59.:10:01.

interesting to see how the Russians go ahead with it. This gives them an

:10:02.:10:08.

important market to enter. Given all the US sanctions in the last couple

:10:09.:10:13.

of years, this will be really, really positive news. Analysts say

:10:14.:10:18.

it is a win, win deal for both India, because it will provide

:10:19.:10:25.

imports, and for Russia, who get a new market. Thank you for explaining

:10:26.:10:31.

all of that. Big-money deals and a lot at stake. I want to reiterate

:10:32.:10:34.

the news we talked about at the start of the programme. China's

:10:35.:10:40.

great Wall motor company asking for a meeting with Fiat Chrysler. This,

:10:41.:10:45.

we understand, will be with a view to making an offer for all or part

:10:46.:10:50.

of Fiat Chrysler. That is an Italian-American car-maker. Just

:10:51.:10:57.

looking at shares, up 3.5% in Europe. Clearly, investors, in these

:10:58.:11:04.

early stages, liking what they see. A lot of implications of that deal

:11:05.:11:12.

was to get the go-ahead. A quick look at what happened in Asia. That

:11:13.:11:17.

is the close in the US on Friday. The Nikki and Hang Seng down. --

:11:18.:11:31.

Nikkei. Whether this means anything for a President Trump's economic

:11:32.:11:39.

policies... Fiat Chrysler up 3.5%. The best looking pretty miserable at

:11:40.:11:42.

the start of a new week. We will talk about why in just a moment.

:11:43.:11:47.

Jeremy Cooke is with us. Let's find out what is happening on Wall

:11:48.:11:51.

Street. The week that starts with the solar

:11:52.:11:55.

eclipse will end with investors hoping that the annual Jacksonville

:11:56.:11:58.

gathering sheds some light on monetary policy. Central bankers

:11:59.:12:02.

from around the globe, including Janet Yellen, and Mario Draghi, will

:12:03.:12:08.

meet in Wyoming beginning on Thursday. The Fed is expected to

:12:09.:12:13.

reduce its balance sheet this year, selling off assets it required after

:12:14.:12:19.

the financial crash. It hasn't set a specific schedule yet, which is why

:12:20.:12:23.

Wall Street will be looking for any clues. Closer to home, this Monday,

:12:24.:12:29.

the Chicago Federal reserve will release its activity index, a

:12:30.:12:34.

barometer of economic activity. In corporate news, BHP Billiton is

:12:35.:12:37.

expected to report earnings. Wall Street is looking for the minor to

:12:38.:12:44.

show improvement and that commodity prices are picking up. More from

:12:45.:12:45.

Michelle later. And we'll be hearing more

:12:46.:12:53.

from Michelle later in the show, when she will be explaining how

:12:54.:12:56.

companies plan to make big bucks out Joining us is Jeremy Cook,

:12:57.:12:59.

chief economist at World First. Let's touch first on America. What

:13:00.:13:06.

could the Jackson hold meeting -- what does the Jackson hold meeting

:13:07.:13:11.

mean? It is in Wyoming in the United States. It is a talking shop central

:13:12.:13:15.

bankers and policymakers. It has a significant importance for market in

:13:16.:13:21.

that in the past five and six years, certainly throughout the global

:13:22.:13:24.

financial crisis, central banks have used this to test out new policy

:13:25.:13:29.

ideas, floating boat by saying, we might be looking at policy,

:13:30.:13:34.

increased interest rates, for example. Janet Yellen and Mario

:13:35.:13:44.

Draghi will be there. Expect them to suggest what their saddlebags could

:13:45.:13:50.

be doing. One of the things that will be on Janet Yellen's mind is

:13:51.:13:55.

the weak dollar? That is right, and how it feeds into inflation

:13:56.:13:58.

expectations. We have seen some softening in inflation. The rate has

:13:59.:14:04.

been risen three times in recent months. That hasn't been felt on the

:14:05.:14:12.

US dollar. We talked about Nafta at the start of the programme. And

:14:13.:14:18.

clearly, President Trump's threats to scrap it entirely. It will be

:14:19.:14:22.

interesting, given what we have also heard this morning, that the Chinese

:14:23.:14:27.

great Wall motor company are asking for a meeting with Fiat Chrysler,

:14:28.:14:33.

will Trump be happy about this? Well, I don't know, is Trump happy

:14:34.:14:37.

about anything at the moment? You would have to say not. This is

:14:38.:14:41.

another thing he will want to try to protect, the great US manufacturing

:14:42.:14:46.

economy. It is about the headline. Not necessarily the intricacies of

:14:47.:14:52.

the deal. The psychological element? Another Chinese corporate raider

:14:53.:14:57.

coming in for an American company, Chrysler. You look at all the cars,

:14:58.:15:02.

the emotion behind that brand within the United States. Whether Trump de

:15:03.:15:07.

facto dismisses it because he doesn't want to see the Chinese

:15:08.:15:11.

taking over such a huge part of Americana. Moving forward, we look

:15:12.:15:18.

at it in Brexit, Trump, China, trade is the thing. Businesses transacting

:15:19.:15:21.

internationally trying to move money around the world, what politics goes

:15:22.:15:27.

against that will be the major delineate of global growth going

:15:28.:15:30.

forward. If we can free that up, everybody will be better.

:15:31.:15:35.

Stay with us, still to come, we will meet the woman behind a networking

:15:36.:15:44.

app for new mothers called Peanut to help them juggle careers and kids.

:15:45.:15:48.

Stay tuned for that, that is coming up, you are with Business Live from

:15:49.:16:00.

BBC News. Let's talk about our favourite story in the UK, house

:16:01.:16:01.

prices. The average house price has soared

:16:02.:16:03.

by nearly ?85,000 over the past five years,

:16:04.:16:05.

according to research from Lloyds. The typical price paid by

:16:06.:16:07.

home-movers is up 41% to ?290,000. Joining us now from

:16:08.:16:10.

the Nottingham newsroom I just wonder how this breaks down

:16:11.:16:23.

across the country. Well, it is a huge breakdown, and a bit of an

:16:24.:16:27.

exaggerated price growth, because we had the height of the market in

:16:28.:16:34.

2007, that then fell to 2009 through to about 2013 in most places, so

:16:35.:16:38.

what we are picking up this price growth from the lower of the market.

:16:39.:16:41.

So if you take the north-east, where they are looking at pricing creases,

:16:42.:16:47.

if you compare prices today there'ss 2007, there is still a 9% fall and

:16:48.:16:55.

deficit there. If you go to London, you are looking at areas that 40% or

:16:56.:17:00.

80% up. So we hugely regional picture, but the last five years is

:17:01.:17:04.

not the best barometer of house prices. I wanted to ask about that,

:17:05.:17:09.

because so much as happened in the last 12 or 18 months that could

:17:10.:17:12.

change some of the fundamentals for the market. You couldn't be more

:17:13.:17:17.

right, the fundamentals of the property market are completely

:17:18.:17:21.

changing, and I am not sure that the Government, industry or consumers

:17:22.:17:24.

really quite and stand what is happening at there, but we can show

:17:25.:17:29.

market whereby you have got one property on a street, maybe three

:17:30.:17:34.

beds detached, going up in price, you have got collapsed on the other

:17:35.:17:38.

end of the street which Dell haven't recovered to 2007 levels. -- which

:17:39.:17:42.

still haven't recovered. Then you might have a property that has been

:17:43.:17:46.

doing well but is now starting to fall in value. So what we are really

:17:47.:17:52.

seeing is London, East Anglia and the south-east, they have had a

:17:53.:17:55.

massive spurt, great growth, that has now come to a natural slowdown,

:17:56.:18:00.

partly because of caps on mortgage lending. The Midlands not doing too

:18:01.:18:04.

badly, but not performing anything like the rate it was before the

:18:05.:18:09.

credit crunch. And in the north, not really seeing anything for ten

:18:10.:18:13.

years. Really good to see you, thanks for talking us through all

:18:14.:18:17.

that, a story we will talk much more about, I'm sure.

:18:18.:18:25.

The French energy giant Total has significantly increased its presence

:18:26.:18:31.

in the North Sea oil and gas industry, more on that online.

:18:32.:18:39.

You with Business Live from BBC News. I just want to remind you of

:18:40.:18:43.

the breaking news we brought you at the of the programme, Kvyat priser

:18:44.:18:53.

shares are up 3.5%. -- be at Chrysler. A Chinese company, Great

:18:54.:19:01.

Wall, are planning to make an offer for all or part of the company.

:19:02.:19:09.

There are some reports that they may be after the Jeep brand, one of the

:19:10.:19:12.

more lucrative brands in that stable. A quick look at how the

:19:13.:19:18.

markets are faring, this is how they looked in Europe at the start of the

:19:19.:19:19.

trading week. Let's turn our attention to

:19:20.:19:32.

something entirely different. For most new mothers,

:19:33.:19:37.

being at home caring for a new baby It's often hard to meet

:19:38.:19:41.

like-minded people. So one new mum took matters

:19:42.:19:44.

into her own hands and Peanut is kind of like

:19:45.:19:46.

a dating app for new mums. It brings new mums together

:19:47.:19:52.

who are going through the same It was co-founded

:19:53.:19:55.

by former deputy chief executive of dating app Badoo,

:19:56.:20:00.

Michelle Kennedy, and one of Deliveroo's

:20:01.:20:03.

co-founders, Greg Orlowski. Kennedy started the app

:20:04.:20:05.

after struggling to meet other mums she could relate to,

:20:06.:20:09.

while also working. Her app, Peanut, is designed

:20:10.:20:11.

to provide a network for mothers. Welcome to Business Live, based on

:20:12.:20:28.

your own experience, but are people not getting to know each other over

:20:29.:20:32.

things like WhatsApp, Facebook, all those existing networks? Why was

:20:33.:20:36.

there a need for this? Two main reasons. When I had my little boy, I

:20:37.:20:42.

have gone from working 1 million mph, working all of the time, all of

:20:43.:20:46.

a sudden I was at home with him and feeling very much like I wasn't sure

:20:47.:20:50.

where my life had gone in terms of social interaction. It is quite

:20:51.:20:55.

hard, particularly in those initial days, you are not really going to

:20:56.:20:58.

the baby classes, you are not leaving the house as much, and it

:20:59.:21:02.

was winter for me, a double whammy. I really felt like I wanted to

:21:03.:21:06.

connect with someone on my wavelength, and I didn't always want

:21:07.:21:10.

to have a conversation about babies - sometimes I just wanted to have a

:21:11.:21:14.

conversation about the usual stuff, something or nothing. None of my

:21:15.:21:18.

girlfriends had had babies yet, so having worked in the dating

:21:19.:21:21.

industry, it felt like a natural progression to take everything I

:21:22.:21:27.

have lent, the dating algorithms that are traditionally used, and

:21:28.:21:32.

apply it to women. So it is not just as simple as saying you have got a

:21:33.:21:38.

new baby, let's go for a coffee, it is more complicated than that. I had

:21:39.:21:42.

a lot of those experiences, you have to meet my friend, she has got a new

:21:43.:21:47.

baby as well! Then you meet and have not thing in common. We take your

:21:48.:21:51.

social graph, we take your location, and the more you use the app, the

:21:52.:21:56.

more intelligent it becomes about the type of woman you want to meet.

:21:57.:22:00.

Sometimes it will be related to your child, your pregnancy, some times it

:22:01.:22:07.

will just be about you, your career, where you studied, what language you

:22:08.:22:13.

speak. And is it just mums? Currently it is just for women, and

:22:14.:22:16.

never say never, but that was the real focus that we had, that was the

:22:17.:22:22.

thing I experienced. What is the main thing it does? You build this

:22:23.:22:25.

network, the danger is people would meet their friends and move onto

:22:26.:22:32.

other apps? A second pain point for me was we would meet connections,

:22:33.:22:38.

you have these women around you, and now you are in... You mentioned

:22:39.:22:42.

WhatsApp or any other group, and there are messages flying back and

:22:43.:22:45.

forth, and you are trying to arrange dates to meet, maybe you want to go

:22:46.:22:50.

for a glass of wine, or have the kids together, and before you know

:22:51.:22:58.

it's there are 200 messages about it, so we have a scheduling feature

:22:59.:23:06.

in the chat, you can vote on that, three clicks and you have arranged a

:23:07.:23:10.

date to meet. Impressive start. Thank you. And you say it is android

:23:11.:23:17.

as well as Apple? From today, yes. Thank you very much. In a minute, we

:23:18.:23:23.

will look through the business pages, but first a reminder of how

:23:24.:23:24.

you can get in touch. In a moment, we'll take a look

:23:25.:23:29.

through the business pages, but first here's a quick reminder

:23:30.:23:32.

of how to get in touch with us. The Business Live page

:23:33.:23:35.

is where you can stay ahead with all the breaking businesses

:23:36.:23:37.

of the day keep up to date with the latest details with insight

:23:38.:23:40.

and analysis from the BBC's team And we want to hear

:23:41.:23:43.

from you as well, get involved on our web page,

:23:44.:23:47.

and on Twitter, Business Live, on TV and online,

:23:48.:23:49.

whenever you need to know. The BBC's Dominic

:23:50.:23:56.

O'Connell is with us. We are going to start with the

:23:57.:24:06.

killer robots warning story. Why is Elon Musk putting this warning out?

:24:07.:24:11.

He says there needs to be something like a Geneva Convention on the use

:24:12.:24:14.

of killer robots or artificial intelligence getting involved in the

:24:15.:24:19.

weapons business. You might say it already is, the US uses lots of

:24:20.:24:23.

drones, we do as well, and they rely on very sophisticated technology,

:24:24.:24:27.

including people, so where do you draw the line? Will you have

:24:28.:24:31.

completely autonomous weapons that can kill people? Maybe the UN should

:24:32.:24:35.

say whether they can do that. We already have things for chemical

:24:36.:24:39.

weapons and nuclear weapons, why not on these as well? And a debate about

:24:40.:24:46.

how more developed countries are more advanced in terms of this.

:24:47.:24:50.

Absolutely, America will lead the way, they have the lead in that kind

:24:51.:24:54.

of technology. We have been asking, do you embrace the robot future?

:24:55.:24:59.

Robin says I am sure intelligent machines will hurt us at some point,

:25:00.:25:05.

it is just about degree. Margaret says, I fear that robots will kill

:25:06.:25:11.

human resources in the technology sector. Somebody says, put them in

:25:12.:25:16.

supermarkets to stop queue jumpers! There are normal users for these

:25:17.:25:19.

robots, this is about the militarisation. It is all about the

:25:20.:25:24.

terminator films, if we know how this is going to go, just watch the

:25:25.:25:29.

films, they will take over! We still need to be in control, that is the

:25:30.:25:34.

issue. We want them to have intelligence, but it is where they

:25:35.:25:37.

stopped taking on their own ideas. It is that scary Facebook trial, the

:25:38.:25:42.

robots started communicating with each other in a language their

:25:43.:25:46.

programmers could not understand, that is when you have to pull the

:25:47.:25:49.

plug! Really nice to see you, thanks very much. We will be back at the

:25:50.:25:53.

same time tomorrow, have a great day tomorrow.

:25:54.:26:14.

This is a warm front moving north, and behind it is tropical air

:26:15.:26:23.

boozing in which will make it feel quite humid for many of

:26:24.:26:24.

Download Subtitles

SRT

ASS