24/08/2017 BBC Business Live


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Hello, this is Business Live from the BBC with Jimmy Robertson and Ben


Thompson. Top talks or hot air? The world central bankers gather in


Wyoming for their annual meeting, will the talks deliver any insight


into the global economy. That is our top story on Thursday, the 24th of


August. Will today's talks deliver any real


progress in boosting the global economy? We will have the details on


where, what why and who and if this matters? And wonder no more. China's


global entertainment giant goes deeper into the red. We'll explain


why. It's been a week of ups and downs for global markets. We will


have an expert view on why any of this matters for all of us. And also


coming up... This maybe little cheesy, but the interview will be


great. We will get the inside track on growing demand for British


cheese. Who writes these scripts? We want to know, what would you do if


you won the Powerball. Let us know using the hashtag at BBC bids live.


I know who writes these scripts, Jamie, it's the people laughing


uncontrollably in our ears, Chris, Adrian and Jenny this morning! Good


morning to you all. Jackson hole, Wyoming, population 9000 is normally


known for its trout fishing, but today it hosts something different.


The annual general meeting of central bankers from more than 40


countries. The top billing goes to the host, US Fed chief Janet Yellen.


What will investors be listening out for when she speaks? Top of the list


will be the US policy on interest rates. There have been three rate


rises since December. Markets will be watching to see if she offers any


indication on her plans for future risers. She may lay out some plans


to share the $4.5 trillion worth of bonds, Betts, to you and me, that


the bank acquired as part of its aggressive money printing programme,


trying to off-load some of those. Markets will be looking to see what


European Central Bank President Mario druggie has to say. He is


attending for the first time in three years. -- Mario drag you.


There is an expectation that he may say something significant, but don't


get your hopes up. The rush by Tel is with me from IMG bank. First,


interest rates, are they going to say anything about that? Central


bankers will be very careful about the words they use, given how


sensitive financial markets have been two recent subtle policy since.


There will be a lot of reading between the lines for us and lists


to do, but those looking for any major policy announcements... They


do it far ahead and give us lots of warning now. I'm not expecting


anything major. There will be a lot of prep work, laying the foundations


for policy changes. What about the pile of bombs sitting in a vault


somewhere... I imagine it's probably not, it is electronic -- pile of


bombs. Pile of bonds. Janet Yellen is ready to start the process of


shrinking the balance sheet and unwinding some of them are produced


by what effect does that have on the market? It hasn't had too much of an


effect. One would have expected bond yields to be higher and equity


prices to be of a bit. Maybe the perfect storm is coming soon, but


maybe not. It will be so gradual, markets will back their eyelids.


There is this issue about asset prices, a really interesting one. No


information, prices are not going up, except on the stock market.


Property prices are going up, everywhere else, no inflation. What


does the Fed do in a situation like that? Central banks have been


talking about the distributional effects of duty and how their


policies are not set up to do that. We will be hearing about that -- of


Q is. It is the short-term interest rates that have put up the prices


begin at everybody has or money and they are all on the stock market.


Partly, but there two views within the Fed. No interest rates are here


to state. One other question on regulation -- low interest rates.


There is a lot of talk in the White House about getting regulation of


banks. Will the central bankers have anything to say about that? This


meeting will be about fostering global economy. Central bankers will


reiterate the need for regulation to safeguard future growth. I think


that will be the message. I like it on that camera four, it looks like


Janet is that at the desk with us! Let's take a look at some of the


other stories. Uber said it took bookings worth $8.7 million, up 7%


on last year. The total number of bookings was up 150%. But it is


still losing money, but that figure is falling every quarter. The


results, after an unprecedented series of scandals that have


engulfed the company in 2017. People searching for, quote, depression,


and Dougal, will soon be prompted to take a questionnaire to assess if


they may be suffering from the illness. The search giant has


partnered with the US national lines on mental illness to roll out the


project, although it is currently only for US users. The UK food


industry has warmed but the post-Brexit Labour shortage could


leave a third of businesses and viable. The food and drink


Federation said the sector faces a rapidly approaching workforce


shortage and skills gap. Nearly half of all of the businesses it survey


said that EU nationals working in the UK were considering leaving.


We're going to talk about that as well with our inside track get a


little later, he will is suffering from exactly that. Stay tuned for a


discussion about what that means for the labour force here in the UK


after Brexit. Away from the UK, though, shares in a Chinese hotel


group plunged today after a disappointing result. Tell us about


the story? Well, that's right, it is the Hong Kong unit of a huge Chinese


development. It has fallen as much as 11% after reporting a first half


loss of $30 million, although it has since recovered somewhat. It is down


7.5% right now. It blamed its losses on smaller gains in investment


properties and the impact of exchange rates on the company sale


of a project in Madrid. The sale of this project was called the


wonderment or development, for 272 million euros, it losses skyrocketed


more than 700% from one year ago. We know the Chinese firm has been in


the news quite a lot recently. It walked away from a planter by


London's nine Elm Square just recently. -- from a plan to buy. It


would buy $1 billion of assets for one. 'S -- for Wonda's projects. Of


course, the first half profits cannot possibly be helpful. Bearing


mind that the Hang Seng, when the stock trade was shut yesterday


because of a hugely devastating typhoon. Thanks very much. More on


that a little later, but interesting times as far as the business is


concerned. Let's talk about shares. Tokyo stocks are down again on the


back of the strong yen. Worries over President Trump is my's remarks over


Nafta and Mexico. It has been a weird week is for us markets are


concerned. Down on Monday, by Tuesday, flat yesterday. We have had


earnings this week, but there is more uncertainty. No sign that


progress has been made any time soon. President Trump threatening to


shut down the US government. We will talk more about that in a moment.


Also Nafta, the North American Free Trade Agreement. We will discuss


that can get. I want to show you Europe, it is a slightly different


picture. Although there was not much to get excited about from this


speech from the of the European Central Bank. He was beating


yesterday, and he is expected to speak at that conference as we have


discussed. Here in the UK, we get the second reading of the


second-quarter GDP, the first one just a few weeks ago, up 0.3%.


Today's figure is seen as a more complete data, so we may get a big


update, but don't expect any big changes. That 3% figure came as a


bit of a surprise because unemployment is still falling in the


UK and yet it hasn't really changed much for the wide economy just yet.


More on all of that injustice item. Michelle has her assessment of the


day ahead on Wall Street. The world's top central bankers meet


and we will get results from Tiffany is. They will be following speeches


from Janet Yellen as well as the side of the European Central Bank.


They will be looking for any clues on monetary policy. Meanwhile, there


is plenty to worry the markets. Trump's threat to shut down the


government shook investors, this is the risk of America defaulting on


its debts looms on the horizon. US Treasury Secretary Steven Mnuchin


has said the government won't be able to pay all of its bills after


September 29 and last the debt ceiling is raised. That is the limit


on the amount the government can borrow. Credit ratings agency Fitch


has warned that America's triple-A rating was at risk if the debt


ceiling isn't raised in eight timely manner. Joining us is chief market


analyst at CMC markets. This is extraordinary, give me my wall or I


am going to close down the government. It seems to be upsetting


the markets and it is making waves. Are you worried? I think he was


talking to his support base, but with President Trump you have to


understand that what you see is what you get. He came to power on the


basis that he wanted to build this war, however ridiculous it may


sound, and we have been here before with the US and the debt ceiling. We


were here in 2011 and 2013. The question is, how far is President


Trump going to push this? The Republicans have control of both


Houses. This is manageable, unlike 2011 and 2013 when President Obama


was president. But President Trump is under pressure at the moment from


all sides, not only Democrats, but Republicans. There is a concern. He


did it may suggest that maybe the what the US government needs is a


government shutdown. Maybe he would do it. What does a shutdown look


like? What would it mean? It basically means that all


government-sponsored activities get suspended. Basically, government


staff don't get paid. There is some way around it. They can potentially


extend or defer certain operations. But ultimately it's not a good look


for the world's number one economy, if you're not playing your stuff or


you are laying off. On a temporary basis. -- if you are not paying your


staff. WPP, the big advertising company, saying it is worried about,


basically consumer spending or consumer appetite for advertising


seems to have dampened down. Figures we have just had out this morning


from the UK about Dixons cough on, it has a warning about profits. --


Dixons cough on. You can read more on the BBC website. These things


drawing together a bit about consumer confidence, consumer


spending. They do a little bit. With Dixons, consumers are holding off


from upgrading their new friends. When you look at the prices of these


new phones that are coming out this year, it's a lot of money --


upgrading their phones. The shape of the advertising market is changing


as well. Part of that is the way we consume advertising, Google, pay per


click, Amazon, Facebook, the way that advertising is pushed and we


consume it is different. On television and streaming, nobody


watches TV now with outbreaks. -- with outbreaks. Advertisers are


having to adapt to a changing digital, you know, road map if you


like. There is a concern about a wage squeeze, consumer squeeze.


Obviously, WPP and Dixons' resolve this morning could be reflective of


the timing and part of consumers, not just here in the UK but


globally. Michael, stick around, because we will be talking to you


later about the newspapers and what is going on in the world of print


media. Thank you. Still to come... It maybe a little cheesy... We've


said this one already! LAUGHTER


It's worth saying again, because the interview will be great. We're going


to get the inside track on the growing demand for British cheese,


especially in the United States, when it usually comes out of a tube.


There is nothing worse than repeating jokes! You with Business


Live from BBC News. We're being told off for not writing


our own jokes! Don't you worry, we've got some of the bike up our


sleeves. The number of cars built in the UK last month rose by 80%, that


according to the Society of motor Manufacturers and traders. But the


number of cars made in the UK in the last seven months of the year fell


16% to about 1 million. -- 1.6%. Sean, the numbers seem to be better


this month, why have we got this rise? Yellow morning, both. The


reason they have gone up in July is a few reasons. One is that we have


got those new registrations coming in in September. That generally


means there is a bit of a bump this time of year anyway. Compared to


last year, you have got to be careful comparing July and August


because you get various factory shutdowns and there has been more


investment in July this year than last making things look rosier. The


general trend for the year and expectations from the industry is


that in the UK we will be making fewer cars and selling a lot fewer


as well, which is really crucial. The selling issue is important, you


touched on the exports, for out of five cars made on the UK sold


overseas. That is where the demand has been coming from, traditionally.


It has. The demand in the UK, I like a good pun, it has been fuelled by


the car finance loan industry. The Bank of England said 85% of all new


car purchases in the UK are driven by car finance deals. That was a pun


I didn't mean, by the way! That is a bit of a concern for them, but not


for the industry. They say it is regulated and they are happy with it


as it stands, but it will be won to watch as we see any potential


interest rate rises in the future, loans become more expensive, what


will happen to car sales in the UK? Sean, before you go, favourite


cheese? I'm a simple Cheddar man. Stay watching, we will talk about


that next. More fallout from the story about


carphone warehouse, who have had a profit warning. They are also saying


that the mobile handset market may not recover this year. The chief


executive said: We have seen an increased number people hold onto


their phones for longer. While it is too early to say whether the trend


will be reversed, we believe it is prudent to plan on the basis that


overall demand will not correct itself.


You're watching Business Life. Our top story: Those central bankers who


are meeting in the United States. They will talk about all sorts of


things - inflation, interest rates. All the challenges for the global


economy. The big question is, will it make any difference or is it just


a jolly meeting? Lets see how the markets have


started in Europe. Looking reasonably healthy, despite that


fall at Dixons. The pound against the dollar at


?1.28. When should you go on a cheese diet?


When you need to Cheddar a few pounds! Cheese sales are up. Britain


is moving ahead as a cheese exporting nation. We sold $687.2


million worth of the stuff last year. We produce 435,000 tonnes of


cheese in the last year. The majority of that was Cheddar, by far


the most popular British export, particularly to the United States.


And not all Cheddar is the same. Most of this is a standard variety,


though there are some producers who concentrate on traditional farmhouse


cheddar. The king of those cheeses is Cave- mature cheddar. Who knew


there were so many fascinating facts about cheese? Mike pulling joins us.


It is specialist cheese, isn't it? Yes, farmhouse cheddar. A cave is an


ideal situation. You have 100% humidity, 14 Celsius all year round.


What does that do to the taste? Cheese always picks up the flavour


of what ever is next to it, like an onion in the fridge. If we were to


do a blind tasting, could you tell your cheese? In the old days, the


graders could tell you which farm it came from. It is a really big


business, and we were talking about sales to the United States being


particularly strong - who is your competition? When I think of cheese


in the United States, either it comes in a rectangle or from a tube.


The French, they do a good job in America as well. The Americans like


English cheese, but they also like French cheese. Do you have to pay


tariffs on your cheese? Yes, it is something about ?1100 at -- 1100


pounds per tonne. We have seen the dollar


strengthening in the last 12 months, and that has helped us a lot. So


that offsets any problems. If people particularly wanted English cheese,


they would buy it. Do we need a free-trade deal with the United


States, as far as you are concerned? For us, it has worked as it is. At


the moment, it's fine. When we talk about that fall in the Valley of the


pound, that makes it cheaper for you both but commodity prices are going


up, milk being no exception. Does that mean a big increase in your? In


July last year, it was around 20p, and it is 30p this year. So that is


the rise in the milk price, which obviously for us, we have to get


that out of the market. Another story that has come out today is a


survey by the food and drink industry about the supply chain,


saying there are something that 30% saying that if they lose EU labour


in this country, they will go under and be unviable. Is that true for


you? Our EU labour is important to us. Would you go wonder? I hope not!


Unviable was the word they used. We employ about 90 people from around


the world, mainly from Poland. Fantastic people to work with. We


are having a problem getting workers into the factory. Are they leaving?


Yes, some of them are giving back to Poland. And how easy is it to get


people to replace them? Very difficult. We put adverts in this


week. The basic wage will have to rise to get these people. You are


putting out adverts but not getting a response? We get a response, but


they are the kind of people who don't want to work in a cheese


factory. But you find EU labour. I do paying them enough? In the long


term, we will have to pay more. Which will push up prices are? Yes,


then we have to get that out of the market. We have to go to a broad


than the UK to get the price. Thank you for coming in.


We will have a look through what is in the business pages in a minute,


but here is a reminder of how to stay across all the business news at


the BBC. We want to hear from you. Get


involved on the BBC Business Like web page.


-- Business Live. Michael is back with us to talk


about what is happening in the newspapers. This is an interesting


story in the FT this morning - more debate and indecision about Heathrow


and whether Richard get that extra runway. The Leader of the


Opposition, Jeremy Corbyn, expected to vote against the expansion of


Heathrow. Why? Pollution, that is the bottom line. That was the


concern I had when they voted it through - how do you get under the


care quality regulations? The M25 is a car park already, let's face it.


What is the difference between West London and South London? It is the


density, given the concerns that there are about clean air in the


London area, do you want to argue that? We do need more capacity in


the south-east, but I don't think it needs to be yet Heathrow. There are


good transport links to Gatwick. Ultimately, a decision has to be


made and stuck to. We have been having this debate for ten years. I


wonder if it will just go won four more years now. I think it will. It


seems that the politicians are unable to make a decision unless it


is a significant project like HS2. All the while, our foreign rivals,


Amsterdam, Dubai, are stealing a lead on Heathrow because of this


indecision. We need it more than ever. Specifically now, with Brexit,


we need to attract that inward investment. This sort of


prevarication basically sends a terrible message to the rest of the


world that our politicians can't agree on anything. Thank you very


much indeed. And thanks for your messages this


morning. And questions about the Powerball, the $750 million. Caleb


says: 'S investment and a holiday. Is we will see you soon. Goodbye.


A very good morning to you. I'm sure many of you are trying to plan your


bank holiday weekend, and the forecast looks mixed - a mixture of


sunshine and showers, with the brighter and drier weather in the


south, thanks to high


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