:00:00. > :00:00.This is Business Live from BBC News with Susannah Streeter
:00:07. > :00:12.The UK must not allow itself to be blackmailed
:00:13. > :00:20.of Britain's International Trade minister.
:00:21. > :00:25.Live from London, that's our top story on Friday the first
:00:26. > :00:39.One of the UK's top politicians says the EU should
:00:40. > :00:45.get on with negotiating a post-Brexit trade arrangement.
:00:46. > :00:47.But they're insisting the divorce bill must be settled first.
:00:48. > :00:51.We're going to discuss who the likely winner
:00:52. > :00:59.Samsung secures self-driving car permit in California.
:01:00. > :01:01.Are tech firms about to drive traditional auto
:01:02. > :01:11.And this is the latest from the financial markets. Stocks are on the
:01:12. > :01:12.up. And we'll be looking
:01:13. > :01:15.at what has been a busy week of economic stories -
:01:16. > :01:17.India has had a surprising slowdown in growth, and the ride sharing app
:01:18. > :01:20.Uber gets a new boss. And after two flights were held
:01:21. > :01:23.on the tarmac at Ottawa for hours in conditions passengers
:01:24. > :01:24.called deplorable, leading to an investigation,
:01:25. > :01:26.We want to hear your Let us know, just use
:01:27. > :01:37.the hashtag #BBCBizLive. The UK's International Trade
:01:38. > :01:43.Secretary Liam Fox says businesses are "getting impatient"
:01:44. > :01:45.about the progress of Brexit negotiations but the country must
:01:46. > :01:47.not allow itself to be "blackmailed" by the EU over its so
:01:48. > :01:57.called divorce bill. Those comments come less than 12
:01:58. > :01:59.hours after the EU's chief negotiator said there had been no
:02:00. > :02:02."decisive progress" during this As well as EU's citizens' rights
:02:03. > :02:05.and the Irish border, the biggest sticking point
:02:06. > :02:09.is the UK's settlement bill. Although no figures have
:02:10. > :02:11.been officially cited, the European Commission president
:02:12. > :02:13.has mentioned a figure The is no official
:02:14. > :02:20.formula for that figure. the UK's $11 billion a year UK net
:02:21. > :02:29.budget contribution, that's what we pay minus what we get back,
:02:30. > :02:32.must continue until 2020. UK
:02:33. > :02:33.negotiators though are The UK had hoped to
:02:34. > :02:39.begin talks in October on a future trade agreement,
:02:40. > :02:42.but the EU's chief negotiator says progress is too slow on other issues
:02:43. > :02:45.and there is now "little That hasn't stopped the UK
:02:46. > :02:49.from discussing trade deals Later today the UK's
:02:50. > :02:55.Brexit Secretary David Davis will give a speech at the US
:02:56. > :02:58.Chambers of Commerce in Washington And as we speak the UK's
:02:59. > :03:05.Prime Minister is on her way back from a trade trip to Japan,
:03:06. > :03:08.a country whose companies employ Now, Liam Fox, the British
:03:09. > :03:13.Secretary of State for was also on that trip -
:03:14. > :03:16.Here's what he told It's very clear that businesses not
:03:17. > :03:22.just in Europe but investors in places like here in Japan
:03:23. > :03:24.are getting impatient, and want to see what that final
:03:25. > :03:26.shape of that arrangement It's very clear that businesses not
:03:27. > :03:32.just in Europe but investors in places like here in Japan
:03:33. > :03:33.are getting impatient, They want to know that there'll
:03:34. > :03:36.continue to be an open and liberal trading environment in Europe,
:03:37. > :03:38.and there's a worry that if it's not the sort
:03:39. > :03:41.of agreement that Britain wants, you could end up with impediments to
:03:42. > :03:44.trade and investment across Europe That was Liam Fox. We are joined now
:03:45. > :04:02.by: You have done international trade
:04:03. > :04:05.deals for the US and corporate. What is a difficult about trade deals,
:04:06. > :04:11.and what you think the UK Government should be focusing on our? The one
:04:12. > :04:17.thing that is difficult about trade deals is it is boring and tedious
:04:18. > :04:21.and all about the detail. What the US/ UK Government should be focusing
:04:22. > :04:28.on is consolidating its going in position, because we are really all
:04:29. > :04:36.over the place, soft Brexit, hard Brexit, read, Blue and Whites
:04:37. > :04:41.Brexit. Michel Barnier needs the specifics. If you do negotiations,
:04:42. > :04:49.unless you have a really good going imposition, it is very hard to get
:04:50. > :04:52.to a compromise somewhere. But these are not traditional negotiations,
:04:53. > :04:56.because you have 27 member states and although these need to be taken
:04:57. > :05:00.into account, and it seems as though the EU is really sticking to its
:05:01. > :05:04.guns and saying, we are not moving, it is up to the UK to move a little
:05:05. > :05:18.bit more, because it is difficult for the EU to move, isn't it? Mr
:05:19. > :05:22.Barnier has been given his instructions, and he has 27 bosses,
:05:23. > :05:32.actually 28 because the commission is another, so he can't just go back
:05:33. > :05:36.and say let's go be lenient, he has to stick to his instructions. It is
:05:37. > :05:43.easier for the UK to say let's be flexible and innovative. Mr Davies
:05:44. > :05:48.only has to go to his boss, Mrs May, he doesn't have to go to 28 people,
:05:49. > :05:52.so in that sense, yes there is a process, and because it is so
:05:53. > :05:58.complex, the EU is so big, they need to be quite rigid and sticking to
:05:59. > :06:03.their instructions. Until the official deal is done with the EU,
:06:04. > :06:09.the UK cannot do any official trade deals with anyone else, but we know
:06:10. > :06:17.the officials are in Japan,. What companies countries do you think
:06:18. > :06:20.that we should focus on? We had summary on earlier saying that we
:06:21. > :06:23.should focus on people have little access like India, we already export
:06:24. > :06:33.a lot to the US. The one thing I would say there, though, you heard
:06:34. > :06:36.it from Prime Minister Abe, he wants clarity on the deal, and every
:06:37. > :06:43.consequent deal will evolve from the shape that the UK/ EU deal house,
:06:44. > :06:48.because especially for investment, it is very important if you want to
:06:49. > :06:53.export. Our biggest market is the EU. We want to know whether you can
:06:54. > :06:59.produce in here, and with these exports to the EU or not. I'm sure
:07:00. > :07:01.we will talk about this again very soon, thank you.
:07:02. > :07:04.Let's take a look at some of the other stories making the news.
:07:05. > :07:06.The costs of storm Harvey in Texas are mounting -
:07:07. > :07:14.with some analysts now estimating losses could approach $100bn.
:07:15. > :07:16.The storm has killed at least 33 people and destroyed
:07:17. > :07:20.Many firms in the region - which is home to the oil
:07:21. > :07:22.and gas industry - don't know when they will
:07:23. > :07:26.Sales of vacuum cleaners that produce more noise and heat
:07:27. > :07:28.than suction are banned under EU rules from today.
:07:29. > :07:31.The ban affects machines using more than 900 watts and emitting
:07:32. > :07:34.Some campaigners say homes now won't be properly cleaned -
:07:35. > :07:37.but energy experts say the best low-powered vacuum cleaners do just
:07:38. > :07:44.The mining giant Rio Tinto has completed the sale of most
:07:45. > :07:48.of its Australian coal assets to the China-based firm Yancoal.
:07:49. > :07:51.The world's second biggest miner raised $2.5bn from the sale -
:07:52. > :08:00.and will earn about $250m in royalty payments.
:08:01. > :08:04.The world's largest smartphone maker has
:08:05. > :08:06.received a permit to start testing autonomous cars in California.
:08:07. > :08:18.Toms is in our Asia business hub with the details.
:08:19. > :08:25.It has just got the green light. Samsung makes arriving from TVs,
:08:26. > :08:29.fans, washing machines, and now it is trying its hand at self driving
:08:30. > :08:33.cars. The electronics giant is joining a long list of companies
:08:34. > :08:37.doing that, including car manufacturers such as BMW and
:08:38. > :08:44.General Motors, but it is also keeping up with tech companies like
:08:45. > :08:51.its arch rival Apple, and Alphabet. This comes several months after it
:08:52. > :08:54.bought a car parts supply of $8 billion, and Samsung has already got
:08:55. > :09:00.the go-ahead to test self driving cars in its own country, South
:09:01. > :09:02.Korea. And remember, Samsung is focusing on self driving car
:09:03. > :09:08.software rather than creating an entire vehicle. And with the OK to
:09:09. > :09:11.test on public roads in California, it looks like Samsung's positioning
:09:12. > :09:16.itself to offer its technology to other companies, including car
:09:17. > :09:21.manufacturers. Sarah, many thanks for that. Self drive cars, the new
:09:22. > :09:24.frontier for Samsung, lots of other text runs as well. Let's take a look
:09:25. > :09:26.at the financial markets. are up - following another rise
:09:27. > :09:38.on Wall Street as worries over both North Korea and Storm Harvey seem
:09:39. > :09:40.to have eased slightly. has boosted the share prices
:09:41. > :09:44.of Japanese exporters - it means their goods
:09:45. > :09:46.are cheaper for foreign buyers. at what's happening in Europe
:09:47. > :09:49.since trading began this morning Investors will be keeping their eye
:09:50. > :09:53.on a key a key US jobs figure out later Michelle Fleurey has
:09:54. > :10:02.the details about what's ahead A second round of trade talks to
:10:03. > :10:07.renegotiate the North American Free Trade Agreement, or Nafta, begins in
:10:08. > :10:10.Mexico City this Friday. Early in the week, US President Donald Trump
:10:11. > :10:16.repeated his threat to rip up the deal if he doesn't get his way.
:10:17. > :10:20.Negotiators for the US, Mexico and Canada are pushing to modernise the
:10:21. > :10:25.23-year-old agreement ahead of Mexico's presidential election next
:10:26. > :10:28.year. And the US Labor Department releases its monthly employment
:10:29. > :10:34.report. It is likely to show that American employers added 180,000
:10:35. > :10:40.jobs in August. That follows a better-than-expected increase of
:10:41. > :10:43.2009000 in July. No changes expected in the unemployment rate, with wages
:10:44. > :10:51.expected to be the real focus for investors, given the lack of wage
:10:52. > :10:56.inflation in the recovery. Monthly car sales figures are due out, and
:10:57. > :11:00.even before hurricane Harvey, which many predict will dent sales,
:11:01. > :11:06.numbers were expected to be disappointing. That was Michelle
:11:07. > :11:10.Fleury and Wall Street for us. Joining us is James Bevan, chief
:11:11. > :11:21.investment officer at CC LA in vessel and management. Figures
:11:22. > :11:29.suggesting losses could approach $100 billion after the effects of
:11:30. > :11:35.Hurricane Harvey. Everybody wants to cap the immediate cost, but in
:11:36. > :11:39.practice, economies have injections of cash because of the rebuilding,
:11:40. > :11:42.so in 18 months' time were we would expect the economy to be in a better
:11:43. > :11:49.place than it is today because of this. Did we see that after
:11:50. > :11:54.Hurricane Katrina? Yes, because new housing has to be built, big
:11:55. > :11:57.infrastructure programmes, consumer confidence rises quite quickly. So
:11:58. > :12:02.good for businesses, but from many people it is a very difficult
:12:03. > :12:05.situation. Yes, and there is a big difference between a broader economy
:12:06. > :12:09.effect on the local effect. If you are a business that loses out
:12:10. > :12:12.locally, doesn't mean that another business can't take up the slack and
:12:13. > :12:17.therefore continue to produce overall levels consistent for demand
:12:18. > :12:22.within the economy. We're talking focusing on the US floods, but right
:12:23. > :12:26.across India, Bangladesh, Nepal, devastating floods. More than a
:12:27. > :12:30.thousand people killed in them. What impact is that having in the
:12:31. > :12:34.short-term, and would you see those same types of reconstruction boosts
:12:35. > :12:38.to those economies going forward? There are couple of issues that are
:12:39. > :12:41.important. In terms of the coverage it is clear that the Hindustan
:12:42. > :12:45.times, for example, has much more coverage of India, whereas in the
:12:46. > :12:49.West we have for five times as much coverage of the US hurricanes than
:12:50. > :12:54.we do the Asian ones, so there is a big geographical challenge in terms
:12:55. > :12:58.of what we take seriously and why. In terms of the economy, India had
:12:59. > :13:04.already cut its interest rate in August, it recognises the economy is
:13:05. > :13:08.slowing. I think it is important to see how much infrastructure takes
:13:09. > :13:17.place in India's cities. That is why the floods have been particularly
:13:18. > :13:23.difficult. Some of the focus has been on the gasoline industry, which
:13:24. > :13:26.is why prices have shot up. What using the prospects are going
:13:27. > :13:31.forward? The storm has abated but still many refineries are right of
:13:32. > :13:35.action. A 10% shift in the oil prices is the same roughly as a $10
:13:36. > :13:38.billion tax hike on the consumer, so I think we are likely to seize on
:13:39. > :13:42.Government action in terms of spending. This comes at a good time
:13:43. > :13:46.for Mr Trump in that sense, because there is a clear expectation that he
:13:47. > :14:00.will find it very difficult to get his fiscal reforms
:14:01. > :14:03.through process. It is really important that the US is able to
:14:04. > :14:06.continue in business, and therefore the debt ceiling arrangements also
:14:07. > :14:09.have to be addressed within the next six weeks. So in a sense although
:14:10. > :14:12.this is a local disaster, it is not good news, but this might be good
:14:13. > :14:14.news for the US economy. Over here we are already beginning to see
:14:15. > :14:17.signs that there will be rising oil prices and petrol prices as well.
:14:18. > :14:17.James Bevan, thank you very much. Still to come:
:14:18. > :14:23.at what's been a busy week of economic stories.
:14:24. > :14:27.a surprising slowdown in growth, and the ride sharing app
:14:28. > :14:33.You're with Business Live from BBC News.
:14:34. > :14:37.The hop harvest is getting under way this week and it's set to be a good
:14:38. > :14:40.But what will it mean for Britain's booming beer industry?
:14:41. > :14:42.Ben Thompson's on a hop farm in the foothills
:14:43. > :14:55.Welcome to a glorious morning down here in Worcestershire. We are with
:14:56. > :15:00.the hop harvest in what's going to be a bumper year for the crop. The
:15:01. > :15:04.farmers are out collecting the crop at this point in the morning. It
:15:05. > :15:10.will be sold around the world. Used in the UK but also sold to Asia and
:15:11. > :15:15.the United States and to Europe. Good morning. A good harvest this
:15:16. > :15:20.year. It's looking like it's going to be a beautiful harvest. The hops
:15:21. > :15:23.are you are coming in well. Beautiful green and weighing heavy
:15:24. > :15:27.at the moment. Fingers crossed. What are we looking at here, it's a huge
:15:28. > :15:31.plant but it's just this little bit that you need. Show us here. It's
:15:32. > :15:35.just the flower. We have got this plant that grows to about six metres
:15:36. > :15:40.tall. We have a lot of leaf and a lot of stem, we call that the bine,
:15:41. > :15:46.all the brewer wants is the flower and it's the yellow in the base of
:15:47. > :15:52.the flower which is the gland and in there we have the hop oils and
:15:53. > :15:56.aromas. In the case of the goldings hop we have floral, honey, spicy
:15:57. > :16:01.flavour notes, it's those flavours that they want coming through into
:16:02. > :16:10.the beer. That's what the hop harvest is all about, getting tiny
:16:11. > :16:14.flowers off the plant and baled, dried, ready to go to the brewer.
:16:15. > :16:18.This love for craft beer must be good news for people like you? The
:16:19. > :16:23.craft brewing industry is brilliant news for hop growers because the
:16:24. > :16:30.utilisation, we call it the utilisation rate of hops, is much
:16:31. > :16:33.higher. Craft beer is about flavour, it's about provenance and quality.
:16:34. > :16:38.In that drink you have a high number of hops which is brilliant news for
:16:39. > :16:45.farmers. Thank you very much. We are going to stay here, they've promised
:16:46. > :16:55.me a little bit of beer later! From me, back to you.
:16:56. > :16:56.Ben gets all the best jobs. A tasting session, it is Friday
:16:57. > :17:08.afternoon. Some suggesting this is a PR
:17:09. > :17:18.exercise. You can get details on our website.
:17:19. > :17:23.You're watching business Business Live. Our top story, the UK's
:17:24. > :17:26.international trade Secretary is accusing the European Union of
:17:27. > :17:30.trying to blackmail the UK into agreeing a Brexit divorce bill. Liam
:17:31. > :17:32.Fox says it's wrong of Brussels to insist that the issue needs
:17:33. > :17:36.resolving before trade talks can begin.
:17:37. > :17:48.Let's look at the financial markets. This is the situation since the
:17:49. > :17:54.markets opened. The FTSE 100 and the DAX and the CAC on the up.
:17:55. > :18:00.Let's get the inside track on this week's big economics stories with
:18:01. > :18:03.our correspondent. The Indian economy has been
:18:04. > :18:14.suffering a slow down. Thank you for coming into the studio. Tell us
:18:15. > :18:18.more, has this thing about withdrawing high denomination cash
:18:19. > :18:23.notes out of the economy. The idea was to make people pay tax. They
:18:24. > :18:27.were hiding this money, bank notes under the bed and the tax
:18:28. > :18:30.authorities didn't know about it. The Prime Minister and the Minister
:18:31. > :18:34.at the time thought this is to get people to pay tax. It stripped money
:18:35. > :18:40.out of April economy which is based on cash. Banking system, credit
:18:41. > :18:43.cards, internet shopping are less sophisticated and widespread in
:18:44. > :18:47.India than other countries. People are paid in cash and buy in cash.
:18:48. > :18:51.Thoughing the notes out of the economy was a hit. Then in the last
:18:52. > :18:55.couple of months we seen the Government introduce a new sales
:18:56. > :19:01.tax, companies were confused about how it would work, those two effects
:19:02. > :19:09.seem to have slowed the economy marketly. It. Was expected to be
:19:10. > :19:13.over 6%. Let's talk about Uber, a change of leadership. They've had a
:19:14. > :19:18.difficult past, shall we say. They might have thought the new CEO would
:19:19. > :19:23.be a new chapter and beginning, but already they're having to talk about
:19:24. > :19:27.a bribery allegations. How is the company? Well, it's too early to
:19:28. > :19:34.blame the new boss for that one T happened before him. This reminds
:19:35. > :19:40.me, when I was at school we did a history course on the age of
:19:41. > :19:43.expansion, conquering Mexico and carving out an empire for Spain that
:19:44. > :19:46.made individuals wealthy. If you think about internet companies that
:19:47. > :19:51.have done well they've been like that. Once it was conquered the
:19:52. > :19:54.Spanish sent in lawyers and surveyors and governors and started
:19:55. > :19:58.running the economy properly and that seems to be what's happening to
:19:59. > :20:02.a lot of internet companies, they were set up and made lots of money
:20:03. > :20:10.in a Newmarket and they were successful. Then you see problems,
:20:11. > :20:12.legal problems, accusations of sexual harassment, bribery
:20:13. > :20:16.accusations, the company not managed particularly well, claims people
:20:17. > :20:22.were unhappy working there. Profits are still doing nicely. No, they
:20:23. > :20:31.don't really make profits, it's... Revenue shall I say. They're
:20:32. > :20:35.powering in. They're bringing in this new guy from, he is known to be
:20:36. > :20:39.an organiser, well respected manager. They want that money
:20:40. > :20:43.flowing in, but all the reputational problems to go away and they reckon
:20:44. > :20:48.he is going to do that. He has a lot on his to do list. US jobs, figures
:20:49. > :20:52.are due out today. We have had some information from the States over the
:20:53. > :21:00.last week about consumer spending and inflation. Tell us why the jobs
:21:01. > :21:03.figures are important. These are the August figures, we are expecting
:21:04. > :21:08.about 200,000 new jobs to have been created. We are looking for is that
:21:09. > :21:14.out of higher wages, and what is the total? August is difficult because
:21:15. > :21:18.it's a mid-sense summer holiday month. They're difficult to predict.
:21:19. > :21:23.Why they're being closely watched is we know the Federal Reserve is
:21:24. > :21:27.thinking about when it needs to increase interest rates again, how
:21:28. > :21:30.much it needs to pull back on the money it's been pumping into the
:21:31. > :21:35.economy. It will reach a tipping point eventually. If the figures are
:21:36. > :21:40.good it will be another piece of the jigsaw that the Fed is looking at to
:21:41. > :21:43.decide does it need to step in and start returning to normality, is the
:21:44. > :21:48.economy growing strongly enough it can take away all the props and that
:21:49. > :21:52.support it's been getting in over the last couple of years? Would
:21:53. > :21:58.200,000 be enough? Yes. Thank you very much.
:21:59. > :22:01.In a moment we will look at the business pages to find out what's
:22:02. > :22:05.making headlines across the newspapers. First, let's get a
:22:06. > :22:07.reminder of how to get in touch with us.
:22:08. > :22:11.The business live page is where you can stay ahead with all the day's
:22:12. > :22:20.breaking business news. We will keep you up to date with the latest
:22:21. > :22:24.details. We want to hear from you too. Get involved on the BBC
:22:25. > :22:38.business live web page. Business live on TV and online
:22:39. > :22:44.whenever you need to know. At the start of the programme we
:22:45. > :22:47.asked you about what was your worst travel journey. This story that
:22:48. > :22:51.flights are being probed, two flights delayed for hours on a
:22:52. > :22:57.runway in Canada. You can see that there. Passengers said they were
:22:58. > :23:02.held in deplorable conditions. Dave says he flew into DC and from the
:23:03. > :23:07.landing to the airport hotel took longer than his entire flight from
:23:08. > :23:11.London. That's about eight hours. Lance says a nine-hour delay in
:23:12. > :23:24.Gatwick for a flight to Bulgaria. Not a great start to the holiday.
:23:25. > :23:32.And another detained in Mexico, not allowed to - back to Cuba. ... I am
:23:33. > :23:38.confused. James Bevan is back here. Any travel delays for you? I think
:23:39. > :23:46.the cynical aspect of air travel is when they overbook flights and it's
:23:47. > :23:52.absolutely montrous, they still make people stay behind, there should be
:23:53. > :23:56.fines on that. Also a focus about what's happening at Wells Fargo, a
:23:57. > :24:01.big bank, set up fake accounts and not just a few dozen, a few hundred,
:24:02. > :24:04.seems millions of fake accounts and the problem has got worse. Well, we
:24:05. > :24:10.knew there was a substantial problem. What happened was that the
:24:11. > :24:14.company were incentivising employees to cross-sell, but they were not
:24:15. > :24:18.keeping an eye on what was going on and the employees were saying, we
:24:19. > :24:21.have to do this, why don't we create accounts and pretend these people
:24:22. > :24:25.are signed up and we will look clever and everyone will be happy. I
:24:26. > :24:35.rather suspect the board went along with it because the
:24:36. > :24:41.The company said we need to know exactly what went on and the sums
:24:42. > :24:45.and the numbers are big are than previously had been expected.
:24:46. > :24:50.Hands-free, cordless, how do you like your vacuum cleaner? Preferably
:24:51. > :24:56.in the cupboard. I am not keen on that sort of thing. I like the idea
:24:57. > :25:02.of the robotic cleaner: This story in lots of the papers, shops are
:25:03. > :25:05.planning special offers on powerful vacuums after they're banned by the
:25:06. > :25:09.EU. The interesting element to this story is that lots of shops are
:25:10. > :25:13.putting prices up on these powerful vacuums because from today they're
:25:14. > :25:17.banned from the EU. It's an interesting issue. When you say
:25:18. > :25:21.they're banned, they're not going to produce or buy more but they can
:25:22. > :25:27.sell off old stock. There is an expectation, people say I want one
:25:28. > :25:34.of those powerful ones and they'll buy one while there is still stock
:25:35. > :25:42.in the shop. This was a Brexit issue. Apparently UK won't
:25:43. > :25:47.necessarily change the law. You can get more suck for your money. Good
:25:48. > :25:51.to know. There will be more business news throughout the day on the BBC
:25:52. > :25:55.live web page and on world business report. We will see you again next
:25:56. > :25:59.week for more business news then. Goodbye.