06/09/2017 BBC Business Live


06/09/2017

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This is Business Live from BBC News with Ben Thompson and Sally Bundock.

:00:00.:00:08.

US law-makers will vote to allow tech giants and car makers to test

:00:09.:00:15.

thousands more autonomous vehicles, but they'll have to meet

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Live from London, that's our top story on Wednesday, 6th September.

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With a fatal crash involving Tesla's autonomous car last year,

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we ask an expert if this tech future means safer driving or disaster

:00:46.:00:48.

Nissan unveils its sexier, souped-up all electric car,

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but will it be able to overtake its high-tech more popular rivals?

:01:06.:01:11.

And we'll be getting the inside track on a labour

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of love - and furry bears - we speak to the boss of toy firm

:01:16.:01:19.

As Ryanair changes its rules on check-in baggage, we want to know

:01:20.:01:35.

your stories on holiday hell. Ryanair says it will make cheaper to

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put luggage in their hold. August Bank Holiday weekend at Luton

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Airport, I will say no more! Billions are being invested

:01:44.:02:00.

in the future of autonomous cars, so the stakes are high particularly

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when it come to the rules Later today lawmakers in the US

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will vote on a bill that would allow the likes of Ford,

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Google and Uber to test thousands more self-driving

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vehicles on the roads. The "Self-Drive Act" would give

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car-makers and tech giants certain exemptions from federal rules that

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currently govern everything from steering wheels to seat-belts

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IF they can prove their tech That would allow thousands more test

:02:27.:02:28.

vehicles on the roads. In California, the number of global

:02:29.:02:43.

firms licensed to test cars has doubled to 27 now. That's over the

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past year. As you can see it includes the big names the likes of

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scapd ford, VW, GM. A test driver became the first

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person to die in a self driving car accident when sensors failed to

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detect a truck on a highway. The new Bill will force manufacturers to

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beef up safety data, defences against hacking and publish policies

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about what data they will collect. And the stakes are high. Consultants

:03:22.:03:28.

Bane predict the industry could be worth $26 billion by 2025.

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Anna-Marie Baysden is head of Autos at BMI research.

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I wonder if you can let us know how significant this is. We know that

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they're testing already, but they're testing on fake tracks, test tracks,

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not in the real world. And the tests they do in the real world are

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limited. Opening it up like this would make a big difference,

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wouldn't it? Absolutely. The volumes that we're talking about as well,

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25,000 cars per manufacturer and we saw the number of manufacturers

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mentioned there, it means a lot more autonomous cars on the road and I

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think at the moment we have only got the likes of Tesla and Volvo. What

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do we expect the real world testing will flag up? What differences will

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they see in the real world that they can't replicate on a test track? It

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will be the behaviour of other drivers on the road. Human drivers

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are more unpredictable than the conditions you can create in a test

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environment. So it's just gathering as much data as possible on how

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different situations might play out and how the car should react and how

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human drivers react. And that's one of the biggest sticking points, it

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is the mismatch between some human drivers and some autonomous drivers.

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If the companies had their way we would be in autonomous cars because

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they can predict better what the response would be? It is definitely

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the riskiest period when you have got the mix of traditional cars and

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autonomous cars because the cars can be programmed in a certain way and a

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lot will be similar, but when you've got human drivers as well, you're

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adding unpredictable behaviour into the mix as well. It's a big market

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as well. Sally touching on the numbers there. So all of the big car

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makers vying for a slice of the market. Are they working together?

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Are they doing this independently? It strikes me that it is one of the

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industries where we'd like to think everybody is working together

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sharing their information, it is probably not like that, is it? Well,

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it is a funny one. You have got newcomers to the ought owe space

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like Google and Apple to a certain extent. So we have got these tech

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companies coming in and in the early stages there has to be

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collaboration. There is a lot of technology that traditional ought

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owe makers aren't used to and tech companies aren't used the ought owe

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sector so there does have to be collaboration, and we will reach a

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point where they are in competition because you have got Google having a

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car out there and Apple maybe. A lot of new start-ups as well that we

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haven't heard of before coming into the market. So it will get very

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competitive quickly. Yeah, one we will be talking about a lot, I'm

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sure. Thank you very much. It is a fascinating subject.

:06:14.:06:24.

Nissan has released details of its revamped electric car -

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The base model of the new Nissan Leaf will now have a longer range,

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able to travel 240-kilometres on a single charge.

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The firm's chief executive says the car will no

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longer be a niche model and will become a major part

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The troubled PR firm Bell Pottinger has confirmed it

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has hired accountancy firm BDO with reports suggesting

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Meanwhile, HSBC has become the latest high-profile firm

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to sever ties with the PR firm following a controversial

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The Archbishop of Canterbury, Justin Welby, says Britain's

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economic model is broken, as the gap between the richest

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He says that Britain stands at a watershed and must make

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"fundamental choices" about the direction of the economy.

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More strong economic news from Australia today -

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it's recorded a strong pick-up in growth in the last three months.

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It's now more than 26 years since Australia

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Many of you are probably going, "What does that feel like?"

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It's the wonder from down under, isn't it? It feels good for

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Australians. It doesn't mean that they don't keep worrying about it.

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No one expected the growth. The last quarter's growth wasn't as strong.

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It is mostly down to domestic spending on food and clothing,

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increasing, whilst saving rates have declined. So consumers basically

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deciding to splurge a little if they can't save. There are concerns about

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the falling commodity prices. Something we talk a lot about on

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this programme. Australia still depends on its iron ore and coal

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exports. The prices have taken a hit in recent times. Despite that 26

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year record, the outlook not always entirely sunny here in Australia, I

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am afraid. Hywel, thank you very much indeed.

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The Australian market was down despite the fact that the economic

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news was better than expected. You can see behind me, that's the Dow

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Jones the night before down 1% on Wall Street. That set the tone for

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Asia. Basically the markets really struggling still with the lack of

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clear next steps with regards to North Korea as what may happen as

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far as that's concerned. Let's look at Europe quickly. Again, shares all

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falling. We have got the European Central Bank meeting tomorrow. We

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have got a Fed gathering the week after. So eyes back on Central Bank

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action. We will talk about all that in more detail. Here is

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SamirA A report is likely to show the trade

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deficit will widen in July and that's from $43.6 billion in June.

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Now, the trade deficit refers to the gap between US imports and exports

:09:45.:09:48.

of goods and services. President Trump vowed to wipe out America's

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trade deficit altogether. The Federal Reserve will issue the beige

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book. It is the latest report to arrive from business contacts around

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the country on the health of the US economy. Now, America's Central Bank

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is expected to hold rates steady at its next meeting in two weeks' time,

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but it may announce that it will start reducing it's $4.5 trillion

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balance sheet. Joining us is Simon Derrick,

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Chief Markets Strategist, Good morning. Nice to see you. Let's

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pick up on Sally's favourite topic. Central Bank action. There is not a

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day that goes by, that we don't talk about it, but another big week. The

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big story will be about the European Central Bank. They're peating

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tomorrow. The question is are they going to further reduce their asset

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purchases, quantitative easing? The market spends a lot of time

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obsessing about this. It has fed into strength into the euro. The

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European Central Bank doesn't like currency strength. The question is

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when we hear the head of the bank tomorrow speaking is he going to

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stay we are becoming concerned about this? That's what the market will

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focus on. We are not going to get a taper tantrum, are we? It's

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possible. We go back to what happened in 2013 and the market

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didn't like this. It is a big programme. My guess is they will

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play it as carefully because they don't want the euro at 120 or 130

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and perishing. A story that dropped on the wires from Reuters. Chinese

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airlines likely to buy more than #,000 planes over the next 20 years

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and this is interesting because it is from Boeing. They say they could,

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it is not confirmed at this point, but worth $1.1 trillion. A huge

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order if it goes ahead, but I'm interested in this given everything

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we've heard about President Trump and firms and countries that deal

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with China and North Korea and all that connection? There is lots of

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unanswered questions about that report. Are they buying them from

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the US? The report is from Boeing and not from China and it is over 20

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years. But nevertheless it says two things to me. The first is clearly

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they're trying to make sure that the relationship on trade with the US is

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as good as it possibly can be. So maybe trying to muddy the waters

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somewhat as we have the trade disputes making place. The second

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thing I'd say is maybe they see it as an opportunity for China to

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become one of the major carriers in the world. I mean, there is this

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question mark about how some of the gulf carriers at the moment given

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their hubs in a politically volatile region, whether they can remain as

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those carriers, maybe China sees this as an opportunity as well.

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Another story we will follow. Simonks thank you. I know you will

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come back and talk us through some stories in the newspapers later.

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We have got an interesting story coming up. A tale of setting up one

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business and it involves some beans and toast to get through the worst

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times, but it is a multi-million pound business. You're with Business

:13:03.:13:14.

Live from BBC News. It's a fishy tale now! Sorry. It's

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going downhill. A sharp downturn in the UK fishing

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industry has meant tough times for many coastal communities that

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relied on it for jobs and income. Many blame EU quotas on fishing

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and those employed in the fishing industry voted overwhelming

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to leave the EU. So how are they preparing

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for life outside the EU? Sean Farrington is in

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Grimsby to find out. Grimsby fish market today. They have

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just managed to sell, they have got 50 tonnes of cod and haddock here

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this morning. A lot of it is imported because that's what we

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prefer to eat in the UK. We import ?1 billion plus of fish every year

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for our own consumption. What we export is what we catch and that

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will be big question marks for the Brexit negotiations as they go

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forward. At minute catch about 400,000 tonnes of fish around the

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UK. Not stuff like this that's coming in from Iceland. Richard is

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from Hull University. Richard, when it comes to Brexit, obviously we're

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importing lots. What's the key thing for the fishing industry in the UK?

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I think we all know it's important to get access to markets. It's

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important for the fishing industry to get a fair share of quotas, but

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it is important not to lose sight of the bigger picture. Most fish stocks

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are over-fished or at risk and we are looking at threats from climate

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change and ocean acidification and it is really important that we don't

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forget that we need to protect and make sure that fish, fishing is

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sustainable for the future. Richard, thank you very much. It will have a

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big effect on the industry. There are 12,000 odd fishermen in the UK

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at the moment. Be careful, they have got toe collect the fish and put

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them in the right place. Back in the mid-90s, there was 20,000. At one

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point Grimsby and all the ports around here were known as the

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world's biggest fishing port. That's changed a lot. So how towns recover

:15:11.:15:15.

like this for Brexit will be important.

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It was a hair net yesterday and it is the trilby today. The beard net.

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Hard hat? Hard hat is fine. I can't pull off a trilby or hair net. I

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think we need a Twitter arty. Ben's best headwear shots! There is lots

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of stories on the Business Live page. Take a look when you have

:15:46.:15:46.

time. You're watching Business

:15:47.:15:53.

Live - our top story: A new low in the US will be grappled

:15:54.:16:02.

with later which means driverless cars could be tested on the open

:16:03.:16:06.

road. Lots of issues regarding safety coming to the fore. -- a new

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law in the US. So far, there have the tests on test

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tracks, not in the real world, so big difference.

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A quick look at how markets are faring....

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Continuing nervousness about events in North Korea. Until we see any

:16:24.:16:32.

real geopolitical response, the concern continues but markets are

:16:33.:16:40.

not overly concerned. Buy we have an extra special guest. I've been

:16:41.:16:46.

replaced! Building a business from the ground up can be a daunting

:16:47.:16:51.

prospect, particularly if you are entering a crowded market. Soft toys

:16:52.:16:59.

accounted for more than $1 billion of cells in the US last year. -- of

:17:00.:17:07.

sales in the US. Charlie Bear is a firm founded

:17:08.:17:12.

here in the UK by a wife and husband team in 2006 -

:17:13.:17:16.

who wanted to try and make high The couple sold their house and car

:17:17.:17:19.

to get the business off the ground - but a decade later it's turning over

:17:20.:17:23.

more than $11m. Charlotte Morris is

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the co-founder of Charlie Bears. Nice to see you. We've brought some

:17:27.:17:30.

of your beautiful bears in, and they are beautiful. We have had a play

:17:31.:17:35.

and a squeeze, and apparently they don't, part, which is the point.

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They are beautiful and robust. -- they don't come apart. How did this

:17:44.:17:49.

start? It has been a passion since I was a little girl. I was gifted a

:17:50.:17:54.

teddy bear and I was enchanted by. When I met my husband, he was very

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supportive and was lovely and allowed us to sell everything that

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we own so that I could follow my dream and start a bear company. You

:18:08.:18:16.

met your husband through the Bears? Yes. In a shop? Yes. You started a

:18:17.:18:25.

business, went to trade fairs, but it was a TV parents that made things

:18:26.:18:33.

kick off? We were approached by a shopping channel, and things boomed

:18:34.:18:36.

and escalated from there. There are a lot of collectors out there, like

:18:37.:18:42.

me, and they love the fact that we have affordable, collectable bears

:18:43.:18:46.

for the market. It is the fact that it is middle of the range, I think

:18:47.:18:53.

you won't mind me saying, they are not top end bears, they are middle

:18:54.:19:02.

of the market, so they cost tens of pounds, not hundreds. And that is

:19:03.:19:07.

what makes us unique compared to everyone else. It is a gap in the

:19:08.:19:11.

market that I noticed, and it was something I wanted to get out there

:19:12.:19:15.

for collectors. You want to encourage the next generation but

:19:16.:19:18.

also give the ones who are still around any excuse to buy one,

:19:19.:19:23.

because it's very addictive. The problem for you was when you hit the

:19:24.:19:27.

airwaves and had hundreds of orders coming in, you could not get the

:19:28.:19:32.

bears out soon enough, because they are made in a very specific way by

:19:33.:19:36.

our small factory in Thailand, and they could not meet the demand. We

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couldn't, and it was scary, very daunting. We had a 62- week waiting

:19:43.:19:56.

list. 62 weeks? ! We signed up to grab Government -- to a Government

:19:57.:20:03.

programme, and they helped us find additional manufacturing, helped us

:20:04.:20:07.

plan everything out so that we could nail everything down and keep

:20:08.:20:11.

everything solid. I absolutely did not want to compromise. We could

:20:12.:20:15.

have gone to China and mass produced, but it was something I

:20:16.:20:20.

didn't want to do. We wanted to stay true to what we started doing. How

:20:21.:20:24.

does it feel to have such a waiting list? It is a badge of honour that

:20:25.:20:30.

people will wait that long, but equally, as a business, you want to

:20:31.:20:33.

be selling more. You don't want people waiting that long, you want

:20:34.:20:39.

them buying multiple bears in that time. Absolutely. It was frustrating

:20:40.:20:44.

but the collectors and for us as a company. We stayed true, continued

:20:45.:20:50.

to use all the traditional bear making methods that we do. There is

:20:51.:20:54.

something about a bear, you will wait for that extra special one.

:20:55.:20:59.

When you talk about the way they are made, there is a factory in Thailand

:21:00.:21:07.

- where else are they made? One in Sri Lanka and to in Thailand. All

:21:08.:21:12.

the girls love what they are doing and you can see that in the end

:21:13.:21:18.

product they make. Explain the thing about beans on toast for me. We

:21:19.:21:25.

literally had to sell everything we own. In my first negotiation, I was

:21:26.:21:29.

trying to negotiate with a landlord that we were renting from. We ate

:21:30.:21:38.

baked beans on toast for six out of seven nights. We still do it on the

:21:39.:21:44.

anniversary. But we have a glass of champagne with it. It is a good

:21:45.:21:50.

staple diet, beans on toast. Thanks for joining us.

:21:51.:21:57.

More now on Nissan's unveiling of its all-new electric as it chases

:21:58.:22:03.

From Tokyo, here's Ruper Wingfield Hayes.

:22:04.:22:13.

In Tokyo today, a huge production with lots

:22:14.:22:15.

of pizzazz for what is a

:22:16.:22:17.

Well, because in large part, this car, or

:22:18.:22:28.

the previous generation of it, is the biggest selling electric

:22:29.:22:30.

vehicle in the world, and because Nissan,

:22:31.:22:32.

Tesla and other big car companies believe

:22:33.:22:38.

that this or something like

:22:39.:22:40.

it really is the future, and that in ten to 15 years,

:22:41.:22:43.

most of us will be driving some sort of electric

:22:44.:22:45.

We're now just going to check out some of the high-tech

:22:46.:22:49.

features of this new Leaf, one of which is that it can park

:22:50.:22:54.

OK, so now, it's going to go forward.

:22:55.:22:58.

You can see I have no hands on the wheel.

:22:59.:23:05.

It's certainly a better looking car than the previous

:23:06.:23:21.

model, which was rather bug eyed and a lot of people thought was an

:23:22.:23:25.

The main difference between this and the old generation

:23:26.:23:28.

is the size of its battery pack, down here under the floor.

:23:29.:23:31.

This one's got a 40 kWh pack, and that

:23:32.:23:33.

means it should be able to go, according to Nissan, up to 400

:23:34.:23:36.

kilometres, or 250 miles on one charge.

:23:37.:23:43.

We'll see how that goes down. That was Rupert Wingfield Hayes in Tokyo

:23:44.:23:50.

for us. Simon Derrick is with us from bank of New York. Were going to

:23:51.:23:55.

talk about this story about Ryanair is reducing baggage check-in fees.

:23:56.:24:05.

People know how in purine ditties -- how infuriating it is to have to pay

:24:06.:24:10.

for bags. They are saying they will allow you to take more for the same

:24:11.:24:13.

amount but they will not allow you to take to make bags on board. We

:24:14.:24:19.

asked you for your check in stories. Matthew says: Working as a baggage

:24:20.:24:23.

handler at Stansted, passengers are making their case is heavy. Yes,

:24:24.:24:28.

passengers are taking too much on holiday. You heard it from Matthew -

:24:29.:24:42.

reduce what you take with you. Steve said: The airline lost luggage on

:24:43.:24:49.

the way to the US and then turned up with my equipment destroyed. Simon,

:24:50.:24:53.

you must have many stories. In a Middle Eastern airport, they were

:24:54.:25:02.

checking passports, the guy who was checking the passports looked at my

:25:03.:25:06.

photograph, passed it around everyone else so that they could

:25:07.:25:10.

laugh as well. That's a bad passport story! On a more serious note, the

:25:11.:25:17.

Archbishop of Canterbury, Justin Welby, saying that the UK economy as

:25:18.:25:22.

is is broken and change needs to happen. Your thoughts? My

:25:23.:25:28.

disagreement would be, it's not just the UK economy, it's a developed

:25:29.:25:35.

world thing and the inequality he is talking about is an overreliance on

:25:36.:25:38.

interest rates rather than fiscal policy. If you own things in the

:25:39.:25:49.

last 15 years, you did well, if you did not, you did not. The divide is

:25:50.:25:56.

between the haves and have nots. Thank you for your company. We're

:25:57.:25:57.

back tomorrow. Goodbye. Good morning. Today is probably

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going to be the best day of the week in terms of weather. Plenty of dry

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weather out there this morning. Chile with clear skies through the

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night. As we

:26:23.:26:23.