:00:11. > :00:16.Hello, welcome to Business Life from the BBC.
:00:17. > :00:21.New figures show the most qualified EU workers are turning their backs
:00:22. > :00:40.on the UK. Live from London it is our top story.
:00:41. > :00:47.As the EU's chief negotiator talks of slow progress in the Brexit
:00:48. > :00:51.negotiations, UK manufacturers are warning of a looming skills shortage
:00:52. > :00:57.and recruitment crisis if they cannot hire EU workers after Brexit.
:00:58. > :01:03.Also, keeping the lights on. A giant merger in China creates the world's
:01:04. > :01:09.largest power supply are worth $280 billion. And with Trump, North
:01:10. > :01:13.Korea, gold and oil on the minds of investors, there is a lot to think
:01:14. > :01:21.about. We will explain what is happening and why. Also, as more and
:01:22. > :01:28.more cars turn green, we will get the inside tracks on the company who
:01:29. > :01:36.wants companies to ditch fossil fuel. As pet ownership is on the
:01:37. > :01:40.rise, we wants to know what is the most extravagant thing you have
:01:41. > :01:51.bought for your pet. Use the hash tag business live.
:01:52. > :01:56.Good morning. We are going to start with the EU because Britain needs to
:01:57. > :02:01.start negotiating seriously. That is the warning from Michel Barnier, as
:02:02. > :02:05.talks resume in Brussels. He said he is frustrated that the UK
:02:06. > :02:09.Government's ambiguity and the failure to tackle potential
:02:10. > :02:15.financial liabilities. This on the same day a major body representing
:02:16. > :02:19.UK manufacturers of one Britain is facing a brain drain. They warned
:02:20. > :02:24.skilled workers from across Europe are already turning their backs on
:02:25. > :02:28.the UK. A survey released this morning found a quarter of
:02:29. > :02:35.manufacturers have seen a decrease in applications from EU nationals.
:02:36. > :02:41.At the same time, 16% have seen a number of EU nationals leaving their
:02:42. > :02:44.business going up. KPMG released a report and predicts 1 million EU
:02:45. > :02:49.nationals that currently work here in the UK are now considering
:02:50. > :02:54.leaving. The vast majority of EU nationals in the country at the
:02:55. > :03:01.moment to consider the UK as very or quite an attractive place to work.
:03:02. > :03:07.The UK exports $336 billion worth of goods and services to the EU. The EU
:03:08. > :03:16.sends back 376 billion. In economic terms at least, it is going to be
:03:17. > :03:20.beneficial for both sides to get the issue of workers' rights resolved
:03:21. > :03:28.sooner, rather than later. Let's talk to the head of education
:03:29. > :03:33.and skills policy at EEF. Thanks for being on the programme. Explain
:03:34. > :03:39.which types of manufacturers are feeling this pain most of the moment
:03:40. > :03:45.75% of manufacturers say they are struggling to recruit. There is huge
:03:46. > :03:50.concerned this alarming figure will only increase as EU nationals leave
:03:51. > :03:57.the UK and manufacturing businesses, as we saw with last week's migration
:03:58. > :04:02.figures. It is the unknown of what a post-Brexit migration system will
:04:03. > :04:06.look like. There is a big question to what extent manufacturers will be
:04:07. > :04:12.able to recruit EU nationals after Brexit. What are you looking for in
:04:13. > :04:17.terms of help for manufacturers? It is a long-winded process and one in
:04:18. > :04:21.which manufacturers, employers may not have much visibility about what
:04:22. > :04:26.the outcome will be? That is what they want to see, visibility and
:04:27. > :04:33.certainty, to know they can recruit those people now and in the future.
:04:34. > :04:37.The average manufacturer has around 11% EU nationals within their
:04:38. > :04:41.workforce and they work across the manufacturing company from machine
:04:42. > :04:49.operatives to skilled engineers and professional engineers. This is
:04:50. > :04:54.something that -- perception EU nationals take low skilled roles,
:04:55. > :04:58.they take the high skills and mid skilled roles which are more
:04:59. > :05:03.difficult for employers to recruit four. In terms of how manufacturers
:05:04. > :05:07.are handling the situation, what are they doing to hold onto those
:05:08. > :05:11.skilled workers who are working for them at the moment? They are trying
:05:12. > :05:16.to give them as much certainty as they can but it depends on the
:05:17. > :05:21.government and the Brexit negotiations. Some have tried to
:05:22. > :05:26.offer more financial support. So if they are applying for indefinite
:05:27. > :05:31.leave to remain. They are trying to future proof their workforce so we
:05:32. > :05:35.see increased investment in apprenticeships, more graduate
:05:36. > :05:39.programmes and Bob Skilling and Rhys killing their present staff. Those
:05:40. > :05:45.solutions are long-term and at in the short term employers are
:05:46. > :05:50.concerned where they will fulfil those job roles. Thank you for your
:05:51. > :05:54.time from EEF. There is a debate on this issue, more details on our
:05:55. > :05:58.website. Let's bring you up today with the
:05:59. > :06:05.headlines: Many refineries have shot in the Gulf of Mexico. It is the
:06:06. > :06:09.larger storm to hit the United States in more than a decade. The
:06:10. > :06:16.closures are expected to cause a temporary spike in US gas prices.
:06:17. > :06:18.Analysts say the impact of the storm will pass $40 billion. It says
:06:19. > :06:24.direct losses could reach $20 billion.
:06:25. > :06:29.There is a joint-venture to build electric vehicles in China. It aims
:06:30. > :06:39.to help the car-makers to expose themselves to the clean air market.
:06:40. > :06:45.They will be owned 25% each by Nissan and Renault.
:06:46. > :06:51.Amazon took over Whole Foods yesterday. It wasted no time in
:06:52. > :06:56.cutting costs. Because on popular items like avocados and apples by a
:06:57. > :07:04.third. It has bid to shake off its reputation high prices. It didn't
:07:05. > :07:11.cut things like bread and milk, but avocados and apples.
:07:12. > :07:15.Avocados are expensive. Lots of stories on our Business Live page.
:07:16. > :07:20.UK companies mutts published pay ratios under new law. They will have
:07:21. > :07:25.to reveal how much more of their chief executives are paid compared
:07:26. > :07:30.with the average employee. This is part of government reform in the UK.
:07:31. > :07:35.The Business Secretary is saying the plans will make a difference but
:07:36. > :07:39.unions attack them as watered down. However, these ratios will have to
:07:40. > :07:43.be revealed under the new law. Let's turn our attention to China
:07:44. > :07:51.because the country is set to create the largest power company.
:07:52. > :07:57.The deal that will create the world's power utility worth $280
:07:58. > :08:06.billion, let's get more from Christine in our bureau in Asia.
:08:07. > :08:09.Tell us more. The new entity is going to be called China energy
:08:10. > :08:17.investors News Corp. This is going to be the world's Bigas power
:08:18. > :08:23.company by Starc capacity. They have assets of $280 billion. There are
:08:24. > :08:26.two reasons, China wants to streamline its state owned
:08:27. > :08:30.enterprises sector and cut overcapacity in the country. And
:08:31. > :08:35.China is moving towards clean energy and it needs companies that can make
:08:36. > :08:43.the transition smoothly. These are the country's biggest companies. It
:08:44. > :08:49.is the top coalminer. If you put the two together, you get a giant which
:08:50. > :08:55.is able to stabilise prices and costs with access to coal and coal
:08:56. > :09:00.transport networks. It is also able to scale up renewables over time. It
:09:01. > :09:07.will account for 13% of China's power generating and coal mining
:09:08. > :09:14.capacity, both of them. 23% of the power will be renewables. There is
:09:15. > :09:21.still a few state-owned power companies in China, so I do expect
:09:22. > :09:28.more to come in this space. We will keep an eye on that one.
:09:29. > :09:33.Confirmation of what the numbers are doing.
:09:34. > :09:36.Tokyo stocks fell Tuesday after North Korea launched a missile
:09:37. > :09:38.over Japan that sent regional tensions soaring,
:09:39. > :09:40.with Prime Minister Shinzo Abe slamming it as an "unprecedented,
:09:41. > :09:50.Donald Trump has also vowed to ramp-up pressure on North Korea
:09:51. > :09:53.That's sent gold to a new nine month high.
:09:54. > :09:56.But oil went lower last night after Hurricane Harvey
:09:57. > :10:02.It's left destruction in its wake, but - and this is purely
:10:03. > :10:04.in a financial sense - not as severe as they'd feared.
:10:05. > :10:07.More on that in a moment, but first Michelle has the rest
:10:08. > :10:26.of the details about the day ahead on Wall Street.
:10:27. > :10:33.President Trump is visiting Texas. He said he would try to fund what
:10:34. > :10:37.will be an expensive recovery from tropicals to all Harvey. It is not
:10:38. > :10:42.clear how the hurricane relief will impact budget talks in Washington.
:10:43. > :10:46.Investors are keeping an eye on the energy sector. Houston and the Texas
:10:47. > :10:51.coast is one of the leading centres for the energy even justly. Many of
:10:52. > :10:55.crude oil production and refineries have shut down because of the storm
:10:56. > :10:59.and it's not clear when they will be open. The storm is putting pressure
:11:00. > :11:04.on the dollar which felt more than two and a half year low against the
:11:05. > :11:10.euro on Monday. On an unrelated note, Apple Store is one to watch
:11:11. > :11:16.after they scheduled a product launch for September the 12th which
:11:17. > :11:19.is thought to include the new iPhone eight.
:11:20. > :11:25.Joining us is Alpesh Patel, Chief Executive of Praefinium Partners.
:11:26. > :11:32.Michelle talking about stuff to watch in the US, we just looked up
:11:33. > :11:37.the wall, all red. No surprise with the situation with North Korea? In
:11:38. > :11:41.the short term you would have thought the market would have come
:11:42. > :11:45.off more. You have the hurricane, you have the missile launch. I was
:11:46. > :11:52.giving a two-hour market broadcast and all I could see was an upward
:11:53. > :11:58.trend. It is your fault! It is my fault. I said everything would go
:11:59. > :12:02.up, so obviously it has gone down today! The reports we are seeing
:12:03. > :12:09.from the big banks, all the analysts in terms of equities. They
:12:10. > :12:12.appreciate we are getting into an overvaluation state, but despite
:12:13. > :12:18.what you are seeing out of the US politically and economically. We are
:12:19. > :12:24.seeing these trends, saying to people not a problem getting into
:12:25. > :12:32.equities and we're not even seen a fall of in the Yen despite the
:12:33. > :12:37.missile launch. It was rising. It is a safe haven. You would think if
:12:38. > :12:42.there are missiles being shot at thy country, people would want to get
:12:43. > :12:48.out of it. You might think, don't want to go to The States, but you
:12:49. > :13:00.have got the euro at least. I wanted to talk about... Gold and oil are
:13:01. > :13:05.doing opposite things. You would have expected oil to shoot up given
:13:06. > :13:12.what is happening in Texas. The issue is it isn't as bad as the
:13:13. > :13:14.market had feared? You would expect some fundamental capacity constraint
:13:15. > :13:20.and the price would go up. The market is doing the opposite of what
:13:21. > :13:24.is rational. What we are doing at the moment, we are following
:13:25. > :13:33.momentum, not looking at fundamentals all rationality. When
:13:34. > :13:35.you say we? The fund and advice to our followers, don't try and
:13:36. > :13:41.rationalise this because you will not make sense of it as things stand
:13:42. > :13:46.at the moment. All right. Not particularly a good thing to say on
:13:47. > :13:54.the news channel. That is really, really helpful. He is coming back
:13:55. > :13:58.with thoughts on pets. No promises any of it will make sense. We will
:13:59. > :14:01.give him ten minutes to get his head around pet purchases.
:14:02. > :14:07.Could heavy machinery and global travel soon be
:14:08. > :14:11.As more and more vehicles turn green, we meet the firm looking
:14:12. > :14:14.at new ways to keep buses, ferries, trucks and lorries moving -
:14:15. > :14:22.You're with Business Live from BBC News.
:14:23. > :14:25.Levels of uninsured driving may be rising for the first time in more
:14:26. > :14:27.than a decade according to new research.
:14:28. > :14:36.BBC reporter Matt Precey joins us now from the BBC Norwich newsroom.
:14:37. > :14:46.Good morning. Just talk us through these things. What do they show us?
:14:47. > :14:50.They come from the motor insurers bureau, an industry body which
:14:51. > :14:53.compensates victims of an insured and hit-and-run drivers. They work
:14:54. > :14:59.to reduce the level of uninsured driving in the UK. This year they
:15:00. > :15:03.expect to pay out ?256 million and in the past 12 months they've seen a
:15:04. > :15:10.10% increase in the cases they handle. That is the first time it
:15:11. > :15:16.has increased since 2004. They handle 12,000 cases every year. The
:15:17. > :15:32.pool of money they used to compensate is roughly ?15 on every
:15:33. > :15:37.premium. What do we expect from this data? It suggests the numbers are
:15:38. > :15:44.increasing and they are investigating the reason for the
:15:45. > :15:50.rise. But the MIB point to other factors, the rise in the number of
:15:51. > :15:53.vehicles on the road, the driver licences being issued. They are
:15:54. > :15:58.looking into claims management companies but they say levels of
:15:59. > :16:04.uninsured driving remains unacceptably high despite
:16:05. > :16:09.effectively halving over the last ten years. What is being done to
:16:10. > :16:15.tackle it? The police are routinely seizing vehicles using a number
:16:16. > :16:20.plate recognition system. These cameras scan hundreds of number
:16:21. > :16:27.plates every hour. They are on a database operated by the MIB. If a
:16:28. > :16:32.car comes up as showing that it is being driven with no insurance, the
:16:33. > :16:42.police. It, double-check the status, and sees the vehicle -- the police.
:16:43. > :16:51.-- the police will halt the vehicle. If they don't do this then the
:16:52. > :16:54.vehicle is auctioned or crushed. 40% of vehicles seized last year ended
:16:55. > :17:04.up in the crusher. That is a thousand cars a week.
:17:05. > :17:07.You're watching Business Live - our top story - Manufacturers have
:17:08. > :17:10.warned of a recruitment crunch if they are unable to keep hiring EU
:17:11. > :17:14.Trade body the EEF says the government must clarify
:17:15. > :17:21.the rights of EU workers "as a matter of urgency".
:17:22. > :17:29.A quick look at how markets are faring...
:17:30. > :17:34.All the main markets in Europe are down 1%. We have safe havens like
:17:35. > :17:41.gold doing well. That is them. We've talked a lot about the growing
:17:42. > :17:44.market for electric vehicles - and whether they can help cut
:17:45. > :17:46.greenhouse gas emissions But what about other
:17:47. > :17:50.modes of transport - that, on the whole, rely
:17:51. > :17:54.on fossil fuels? The US Environmental
:17:55. > :17:55.Protection Agency found that heavy-duty vehicles like trucks,
:17:56. > :18:01.rail, ferries, boats and aircraft make up 40% of greenhouse emissions
:18:02. > :18:06.from the transportation sector. One company that's trying
:18:07. > :18:08.to revolutionize the heavy transport The company said that its electric
:18:09. > :18:16.propulsion technology enables better efficiency with less fuel
:18:17. > :18:19.consumption, less noise and cleaner air - and results in 50% less
:18:20. > :18:27.emissions in heavy-duty vehicles. The Finnish company
:18:28. > :18:29.was founded by Kimmo Rauma, and his company has delivered Asia's
:18:30. > :18:31.first hybrid ferry, Finland's first all electric ferry,
:18:32. > :18:57.and other electric bus fleets. Let's talk about how it works. We
:18:58. > :19:04.are so used to talking about electric cars. This is about scaling
:19:05. > :19:08.up to industrial applications. Buses, I see as a logical. Can you
:19:09. > :19:19.really para a ferry with electricity? It is quite
:19:20. > :19:22.straightforward. 90% of the time, it is standing still, a car. When you
:19:23. > :19:29.think about fairies, they are working every day. The total life of
:19:30. > :19:36.a car is 6000 hours, this kind of heavy duty can do it in a year. When
:19:37. > :19:50.do you charge it? I can understand you do it overnight, but ferries
:19:51. > :19:58.will travel overnight. This is what they think about the cars, the
:19:59. > :20:09.battery is not ready. It is operating 17 hours without any
:20:10. > :20:19.charging. The first full electric fairy in Taiwan, it can charge when
:20:20. > :20:23.people are coming in. So the six minutes is enough for the charging.
:20:24. > :20:33.Six minutes, you can charge the ferry. You have a little battery
:20:34. > :20:37.that is bigger than needed, so during night time you can charge it
:20:38. > :20:45.a little more. It is quite easy to understand it does not change this
:20:46. > :20:52.anywhere else. It cleans the pollution. You see yourself as a
:20:53. > :20:55.disrupter in this industry, an industry you believe does not want
:20:56. > :21:01.to change. You have very much focused on Asia where there is a
:21:02. > :21:05.cultural difference. They are open to what you're offering them and
:21:06. > :21:10.willing to invest but not so in Europe? Yes. If you think about the
:21:11. > :21:18.truck business, the whole business is based on the maintenance fee. The
:21:19. > :21:28.truck race has been the same for the last decade, exactly the same. At
:21:29. > :21:32.the same time, the maintenance cost is 12 times higher. When we
:21:33. > :21:37.electrify that one or make it a hybrid it destroys the maintenance
:21:38. > :21:43.part of the industry. Of course they do not want to change. This
:21:44. > :21:49.combination does not exist in Asia. The biggest ones are not from Asia,
:21:50. > :21:53.when they want to take over the world and become the big ones they
:21:54. > :22:01.will do it in full electric in a minute. We talked earlier about
:22:02. > :22:13.heavy plant machinery, Rock crushers, JCBs. Given those
:22:14. > :22:21.refuseniks, how do you get them to embrace them? Actually, I need to
:22:22. > :22:28.find the medium players who want to take on the bigger ones and show the
:22:29. > :22:37.world this is doable. When we got the first ones to say, they are
:22:38. > :22:44.earning much more money than they used to but everyone loves it
:22:45. > :22:53.because there is no air-pollution. It is gone now. It is a win- win
:22:54. > :22:58.situation. It is fascinating to hear what you have to say. I want that
:22:59. > :23:01.battery on my smartphone! In a moment we'll take a look
:23:02. > :23:04.through the Business Pages but first here's a quick reminder of how
:23:05. > :23:13.to get in touch with us. The business live page is where you
:23:14. > :23:19.can stay ahead with all the breaking news. We will keep you up-to-date
:23:20. > :23:31.with the latest details. We want to hear from you as well. Get involved
:23:32. > :23:45.on the web page. You can find us on Facebook.
:23:46. > :23:59.You have not held back with the tweets today. Let's bring back a
:24:00. > :24:09.reporter. Pets on the rise. Apparently rich people like animals
:24:10. > :24:14.more than people who cannot afford. Here is an opportunity for viewers
:24:15. > :24:23.to get rich. I looked up high-end fashion websites and none of those
:24:24. > :24:26.websites had anything about pets. They had menswear, childrenswear,
:24:27. > :24:33.womenswear, yet the sheer prices of all those companies are at an
:24:34. > :24:40.all-time high. They are missing a trick. I am going to buy shares in
:24:41. > :24:49.those three. I think they will start doing a pet range. By the way the
:24:50. > :25:01.champagne for pets is called Pawsecco. I think the RSPCA might
:25:02. > :25:06.come knocking. One person said, she bought a bag so she could be slung
:25:07. > :25:11.over my shoulder. She loved it. Gucci, that is the way to go. You
:25:12. > :25:24.haven't got any pets. I'm a vegetarian that doesn't like
:25:25. > :25:34.animals. This person says, ?48,000 BMW estate for the pet. We have
:25:35. > :25:40.someone with a stroller that holds five dogs. An elevator with voice
:25:41. > :25:46.activated controls and mood lighting. Who are you? Thanks for
:25:47. > :26:12.coming in. Appreciated. Good morning. Yesterday we got to 28
:26:13. > :26:14.degrees across the