01/09/2017 BBC Business Live


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This is Business Live from BBC News with Susannah Streeter


The UK must not allow itself to be blackmailed


of Britain's International Trade minister.


Live from London, that's our top story on Friday the first


One of the UK's top politicians says the EU should


get on with negotiating a post-Brexit trade arrangement.


But they're insisting the divorce bill must be settled first.


We're going to discuss who the likely winner


Samsung secures self-driving car permit in California.


Are tech firms about to drive traditional auto


And this is the latest from the financial markets. Stocks are on the


up. And we'll be looking


at what has been a busy week of economic stories -


India has had a surprising slowdown in growth, and the ride sharing app


Uber gets a new boss. And after two flights were held


on the tarmac at Ottawa for hours in conditions passengers


called deplorable, leading to an investigation,


We want to hear your Let us know, just use


the hashtag #BBCBizLive. The UK's International Trade


Secretary Liam Fox says businesses are "getting impatient"


about the progress of Brexit negotiations but the country must


not allow itself to be "blackmailed" by the EU over its so


called divorce bill. Those comments come less than 12


hours after the EU's chief negotiator said there had been no


"decisive progress" during this As well as EU's citizens' rights


and the Irish border, the biggest sticking point


is the UK's settlement bill. Although no figures have


been officially cited, the European Commission president


has mentioned a figure The is no official


formula for that figure. the UK's $11 billion a year UK net


budget contribution, that's what we pay minus what we get back,


must continue until 2020. UK


negotiators though are The UK had hoped to


begin talks in October on a future trade agreement,


but the EU's chief negotiator says progress is too slow on other issues


and there is now "little That hasn't stopped the UK


from discussing trade deals Later today the UK's


Brexit Secretary David Davis will give a speech at the US


Chambers of Commerce in Washington And as we speak the UK's


Prime Minister is on her way back from a trade trip to Japan,


a country whose companies employ Now, Liam Fox, the British


Secretary of State for was also on that trip -


Here's what he told It's very clear that businesses not


just in Europe but investors in places like here in Japan


are getting impatient, and want to see what that final


shape of that arrangement It's very clear that businesses not


just in Europe but investors in places like here in Japan


are getting impatient, They want to know that there'll


continue to be an open and liberal trading environment in Europe,


and there's a worry that if it's not the sort


of agreement that Britain wants, you could end up with impediments to


trade and investment across Europe That was Liam Fox. We are joined now


by: You have done international trade


deals for the US and corporate. What is a difficult about trade deals,


and what you think the UK Government should be focusing on our? The one


thing that is difficult about trade deals is it is boring and tedious


and all about the detail. What the US/ UK Government should be focusing


on is consolidating its going in position, because we are really all


over the place, soft Brexit, hard Brexit, read, Blue and Whites


Brexit. Michel Barnier needs the specifics. If you do negotiations,


unless you have a really good going imposition, it is very hard to get


to a compromise somewhere. But these are not traditional negotiations,


because you have 27 member states and although these need to be taken


into account, and it seems as though the EU is really sticking to its


guns and saying, we are not moving, it is up to the UK to move a little


bit more, because it is difficult for the EU to move, isn't it? Mr


Barnier has been given his instructions, and he has 27 bosses,


actually 28 because the commission is another, so he can't just go back


and say let's go be lenient, he has to stick to his instructions. It is


easier for the UK to say let's be flexible and innovative. Mr Davies


only has to go to his boss, Mrs May, he doesn't have to go to 28 people,


so in that sense, yes there is a process, and because it is so


complex, the EU is so big, they need to be quite rigid and sticking to


their instructions. Until the official deal is done with the EU,


the UK cannot do any official trade deals with anyone else, but we know


the officials are in Japan,. What companies countries do you think


that we should focus on? We had summary on earlier saying that we


should focus on people have little access like India, we already export


a lot to the US. The one thing I would say there, though, you heard


it from Prime Minister Abe, he wants clarity on the deal, and every


consequent deal will evolve from the shape that the UK/ EU deal house,


because especially for investment, it is very important if you want to


export. Our biggest market is the EU. We want to know whether you can


produce in here, and with these exports to the EU or not. I'm sure


we will talk about this again very soon, thank you.


Let's take a look at some of the other stories making the news.


The costs of storm Harvey in Texas are mounting -


with some analysts now estimating losses could approach $100bn.


The storm has killed at least 33 people and destroyed


Many firms in the region - which is home to the oil


and gas industry - don't know when they will


Sales of vacuum cleaners that produce more noise and heat


than suction are banned under EU rules from today.


The ban affects machines using more than 900 watts and emitting


Some campaigners say homes now won't be properly cleaned -


but energy experts say the best low-powered vacuum cleaners do just


The mining giant Rio Tinto has completed the sale of most


of its Australian coal assets to the China-based firm Yancoal.


The world's second biggest miner raised $2.5bn from the sale -


and will earn about $250m in royalty payments.


The world's largest smartphone maker has


received a permit to start testing autonomous cars in California.


Toms is in our Asia business hub with the details.


It has just got the green light. Samsung makes arriving from TVs,


fans, washing machines, and now it is trying its hand at self driving


cars. The electronics giant is joining a long list of companies


doing that, including car manufacturers such as BMW and


General Motors, but it is also keeping up with tech companies like


its arch rival Apple, and Alphabet. This comes several months after it


bought a car parts supply of $8 billion, and Samsung has already got


the go-ahead to test self driving cars in its own country, South


Korea. And remember, Samsung is focusing on self driving car


software rather than creating an entire vehicle. And with the OK to


test on public roads in California, it looks like Samsung's positioning


itself to offer its technology to other companies, including car


manufacturers. Sarah, many thanks for that. Self drive cars, the new


frontier for Samsung, lots of other text runs as well. Let's take a look


at the financial markets. are up - following another rise


on Wall Street as worries over both North Korea and Storm Harvey seem


to have eased slightly. has boosted the share prices


of Japanese exporters - it means their goods


are cheaper for foreign buyers. at what's happening in Europe


since trading began this morning Investors will be keeping their eye


on a key a key US jobs figure out later Michelle Fleurey has


the details about what's ahead A second round of trade talks to


renegotiate the North American Free Trade Agreement, or Nafta, begins in


Mexico City this Friday. Early in the week, US President Donald Trump


repeated his threat to rip up the deal if he doesn't get his way.


Negotiators for the US, Mexico and Canada are pushing to modernise the


23-year-old agreement ahead of Mexico's presidential election next


year. And the US Labor Department releases its monthly employment


report. It is likely to show that American employers added 180,000


jobs in August. That follows a better-than-expected increase of


2009000 in July. No changes expected in the unemployment rate, with wages


expected to be the real focus for investors, given the lack of wage


inflation in the recovery. Monthly car sales figures are due out, and


even before hurricane Harvey, which many predict will dent sales,


numbers were expected to be disappointing. That was Michelle


Fleury and Wall Street for us. Joining us is James Bevan, chief


investment officer at CC LA in vessel and management. Figures


suggesting losses could approach $100 billion after the effects of


Hurricane Harvey. Everybody wants to cap the immediate cost, but in


practice, economies have injections of cash because of the rebuilding,


so in 18 months' time were we would expect the economy to be in a better


place than it is today because of this. Did we see that after


Hurricane Katrina? Yes, because new housing has to be built, big


infrastructure programmes, consumer confidence rises quite quickly. So


good for businesses, but from many people it is a very difficult


situation. Yes, and there is a big difference between a broader economy


effect on the local effect. If you are a business that loses out


locally, doesn't mean that another business can't take up the slack and


therefore continue to produce overall levels consistent for demand


within the economy. We're talking focusing on the US floods, but right


across India, Bangladesh, Nepal, devastating floods. More than a


thousand people killed in them. What impact is that having in the


short-term, and would you see those same types of reconstruction boosts


to those economies going forward? There are couple of issues that are


important. In terms of the coverage it is clear that the Hindustan


times, for example, has much more coverage of India, whereas in the


West we have for five times as much coverage of the US hurricanes than


we do the Asian ones, so there is a big geographical challenge in terms


of what we take seriously and why. In terms of the economy, India had


already cut its interest rate in August, it recognises the economy is


slowing. I think it is important to see how much infrastructure takes


place in India's cities. That is why the floods have been particularly


difficult. Some of the focus has been on the gasoline industry, which


is why prices have shot up. What using the prospects are going


forward? The storm has abated but still many refineries are right of


action. A 10% shift in the oil prices is the same roughly as a $10


billion tax hike on the consumer, so I think we are likely to seize on


Government action in terms of spending. This comes at a good time


for Mr Trump in that sense, because there is a clear expectation that he


will find it very difficult to get his fiscal reforms


through process. It is really important that the US is able to


continue in business, and therefore the debt ceiling arrangements also


have to be addressed within the next six weeks. So in a sense although


this is a local disaster, it is not good news, but this might be good


news for the US economy. Over here we are already beginning to see


signs that there will be rising oil prices and petrol prices as well.


James Bevan, thank you very much. Still to come:


at what's been a busy week of economic stories.


a surprising slowdown in growth, and the ride sharing app


You're with Business Live from BBC News.


The hop harvest is getting under way this week and it's set to be a good


But what will it mean for Britain's booming beer industry?


Ben Thompson's on a hop farm in the foothills


Welcome to a glorious morning down here in Worcestershire. We are with


the hop harvest in what's going to be a bumper year for the crop. The


farmers are out collecting the crop at this point in the morning. It


will be sold around the world. Used in the UK but also sold to Asia and


the United States and to Europe. Good morning. A good harvest this


year. It's looking like it's going to be a beautiful harvest. The hops


are you are coming in well. Beautiful green and weighing heavy


at the moment. Fingers crossed. What are we looking at here, it's a huge


plant but it's just this little bit that you need. Show us here. It's


just the flower. We have got this plant that grows to about six metres


tall. We have a lot of leaf and a lot of stem, we call that the bine,


all the brewer wants is the flower and it's the yellow in the base of


the flower which is the gland and in there we have the hop oils and


aromas. In the case of the goldings hop we have floral, honey, spicy


flavour notes, it's those flavours that they want coming through into


the beer. That's what the hop harvest is all about, getting tiny


flowers off the plant and baled, dried, ready to go to the brewer.


This love for craft beer must be good news for people like you? The


craft brewing industry is brilliant news for hop growers because the


utilisation, we call it the utilisation rate of hops, is much


higher. Craft beer is about flavour, it's about provenance and quality.


In that drink you have a high number of hops which is brilliant news for


farmers. Thank you very much. We are going to stay here, they've promised


me a little bit of beer later! From me, back to you.


Ben gets all the best jobs. A tasting session, it is Friday


afternoon. Some suggesting this is a PR


exercise. You can get details on our website.


You're watching business Business Live. Our top story, the UK's


international trade Secretary is accusing the European Union of


trying to blackmail the UK into agreeing a Brexit divorce bill. Liam


Fox says it's wrong of Brussels to insist that the issue needs


resolving before trade talks can begin.


Let's look at the financial markets. This is the situation since the


markets opened. The FTSE 100 and the DAX and the CAC on the up.


Let's get the inside track on this week's big economics stories with


our correspondent. The Indian economy has been


suffering a slow down. Thank you for coming into the studio. Tell us


more, has this thing about withdrawing high denomination cash


notes out of the economy. The idea was to make people pay tax. They


were hiding this money, bank notes under the bed and the tax


authorities didn't know about it. The Prime Minister and the Minister


at the time thought this is to get people to pay tax. It stripped money


out of April economy which is based on cash. Banking system, credit


cards, internet shopping are less sophisticated and widespread in


India than other countries. People are paid in cash and buy in cash.


Thoughing the notes out of the economy was a hit. Then in the last


couple of months we seen the Government introduce a new sales


tax, companies were confused about how it would work, those two effects


seem to have slowed the economy marketly. It. Was expected to be


over 6%. Let's talk about Uber, a change of leadership. They've had a


difficult past, shall we say. They might have thought the new CEO would


be a new chapter and beginning, but already they're having to talk about


a bribery allegations. How is the company? Well, it's too early to


blame the new boss for that one T happened before him. This reminds


me, when I was at school we did a history course on the age of


expansion, conquering Mexico and carving out an empire for Spain that


made individuals wealthy. If you think about internet companies that


have done well they've been like that. Once it was conquered the


Spanish sent in lawyers and surveyors and governors and started


running the economy properly and that seems to be what's happening to


a lot of internet companies, they were set up and made lots of money


in a Newmarket and they were successful. Then you see problems,


legal problems, accusations of sexual harassment, bribery


accusations, the company not managed particularly well, claims people


were unhappy working there. Profits are still doing nicely. No, they


don't really make profits, it's... Revenue shall I say. They're


powering in. They're bringing in this new guy from, he is known to be


an organiser, well respected manager. They want that money


flowing in, but all the reputational problems to go away and they reckon


he is going to do that. He has a lot on his to do list. US jobs, figures


are due out today. We have had some information from the States over the


last week about consumer spending and inflation. Tell us why the jobs


figures are important. These are the August figures, we are expecting


about 200,000 new jobs to have been created. We are looking for is that


out of higher wages, and what is the total? August is difficult because


it's a mid-sense summer holiday month. They're difficult to predict.


Why they're being closely watched is we know the Federal Reserve is


thinking about when it needs to increase interest rates again, how


much it needs to pull back on the money it's been pumping into the


economy. It will reach a tipping point eventually. If the figures are


good it will be another piece of the jigsaw that the Fed is looking at to


decide does it need to step in and start returning to normality, is the


economy growing strongly enough it can take away all the props and that


support it's been getting in over the last couple of years? Would


200,000 be enough? Yes. Thank you very much.


In a moment we will look at the business pages to find out what's


making headlines across the newspapers. First, let's get a


reminder of how to get in touch with us.


The business live page is where you can stay ahead with all the day's


breaking business news. We will keep you up to date with the latest


details. We want to hear from you too. Get involved on the BBC


business live web page. Business live on TV and online


whenever you need to know. At the start of the programme we


asked you about what was your worst travel journey. This story that


flights are being probed, two flights delayed for hours on a


runway in Canada. You can see that there. Passengers said they were


held in deplorable conditions. Dave says he flew into DC and from the


landing to the airport hotel took longer than his entire flight from


London. That's about eight hours. Lance says a nine-hour delay in


Gatwick for a flight to Bulgaria. Not a great start to the holiday.


And another detained in Mexico, not allowed to - back to Cuba. ... I am


confused. James Bevan is back here. Any travel delays for you? I think


the cynical aspect of air travel is when they overbook flights and it's


absolutely montrous, they still make people stay behind, there should be


fines on that. Also a focus about what's happening at Wells Fargo, a


big bank, set up fake accounts and not just a few dozen, a few hundred,


seems millions of fake accounts and the problem has got worse. Well, we


knew there was a substantial problem. What happened was that the


company were incentivising employees to cross-sell, but they were not


keeping an eye on what was going on and the employees were saying, we


have to do this, why don't we create accounts and pretend these people


are signed up and we will look clever and everyone will be happy. I


rather suspect the board went along with it because the


The company said we need to know exactly what went on and the sums


and the numbers are big are than previously had been expected.


Hands-free, cordless, how do you like your vacuum cleaner? Preferably


in the cupboard. I am not keen on that sort of thing. I like the idea


of the robotic cleaner: This story in lots of the papers, shops are


planning special offers on powerful vacuums after they're banned by the


EU. The interesting element to this story is that lots of shops are


putting prices up on these powerful vacuums because from today they're


banned from the EU. It's an interesting issue. When you say


they're banned, they're not going to produce or buy more but they can


sell off old stock. There is an expectation, people say I want one


of those powerful ones and they'll buy one while there is still stock


in the shop. This was a Brexit issue. Apparently UK won't


necessarily change the law. You can get more suck for your money. Good


to know. There will be more business news throughout the day on the BBC


live web page and on world business report. We will see you again next


week for more business news then. Goodbye.


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