25/10/2017 BBC Business Live


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This is Business Live from BBC News with Alice Baxter and Ben Bland.


The weed killer conundrum - EU health experts are due to vote


on whether or not to extend the licence for glyphosate over


Live from London, that's our top story on Wednesday


The industry say it's harmless and necessary


for farmers but opponents claim it's carcinogenic.


Also in the programme, China's Communist Party


unveils its new top leadership with no obvious successor among


We'll find out what it means for the economy.


Of course, we will bring you up to date with the latest from the


markets. Following a healthy run in Asia overnight, European markets


have opened. Once the leader in smartphone


technology, Blackberry left the handset game last year


to focus on software. We'll be speaking to


the Chief Executive about the move. And a handwritten note containing


Albert Einstein's formula for happiness has fetched


$1.3 million at auction. So, we want to know -


what's your secret to happiness? Apart from watching BBC Business


Life, of course! A two-year row over whether to ban


the use of a common weed killer EU health experts are due to vote


on whether to extend It's a chemical used by farmers


and gardeners across the world To give you an idea,


residue of the chemical has been And it was discovered in the urine


of three-quarters of Germans tested, The reason this is worrying


for some are the links A study in 2015 by the World Health


Organisation's Cancer Agency found that it was probably


carcinogenic to humans. Monsanto - which discovered


the chemical and owns the Roundup brand -


insists it is safe. The other issue is


what could replace it. Several farmers unions


have threatened lawsuits if the licence is not extended


because they would have With me is our Economics


Correspondent Andrew Walker. As Alice was mentioning, there is a


lot riding on this decision? Yes, glyphosate is the most widely used


pesticide and it is very important for farmers as it is currently


practised, particularly in the European Union. There have been a


number of estimates about potential economic costs if they were unable


to use it. One study suggested ?1 billion per year would be the cost


to British farmers. Other studies in France suggested even larger costs


for French vine growers and cereal farmers. So, yes, a lot at stake,


quite apart from the potential losses for the suppliers. Monsanto


is one you mentioned. But there are other businesses that use the


glyphosate in pesticides. It is also worth mentioning that the ability to


use glyphosate is one of the key selling points of certain types of


genetically modified crops, because they are resistant to glyphosate,


which means that the soil around them can be sprayed with this


pesticide, with this herbicide, and they survive intact and don't have


to deal with competition from weeds. The politics behind this are


interesting. The European Commission seems to be in favour of renewing


the license, but the European Parliament sits on the other side of


the fence? The European Parliament yesterday passed a resolution


calling for glyphosate to be phased out over five years. The European


Commission originally proposed a ten year renewal. They are now accepting


it is likely to be shorter than that. In a meeting happening today


they are looking for something between five and seven years. It is


striking, they could come in principle, go ahead and simply do


this if they wanted to. But they want to ensure that the member


states are onside, because it is so politically sensitive. We had a


petition signed by more than 1 million Europeans presented to the


EU this week calling for no extension. I was speaking to


somebody from the European Crop Protection Agency earlier who said


there is very little evidence that it is carcinogenic. That is one of


the big issues that has made this so controversial? Indeed. There are a


couple of European agencies, one looking at food and one that


chemicals, that have concluded glyphosate is probably OK. The main


report against it is from, as Alice mentioned at the beginning, from the


WHO's Cancer Research Agency, which thought it was probably carcinogenic


to humans. That is based to a large extent on evidence from animal


experiments and evidence looking at DNA damage in human cells. At the


very least, it is fair to say that the scientific community does not


regard it as established fact that it is dangerous. OK, thanks very


much. Let's take a look at some of


the other stories making the news. French carmaker PSA Group says it's


seen its revenue rise strongly after it added Opel-Vauxhall sales


numbers for the first time and increased deliveries


in Europe and Latin America. The maker of Peugeot and Citroen


cars saw a revenue rise of 31 percent to $17.6 billion


in the third quarter Shares of Chipotle slumped more


than 8% in late US trading after the Mexican food chain


missed earnings expectations. The company has struggled to win


back customers after at least two food safety scares


and a hacking attack. The last pack of UK-made cigarettes


has rolled off the production line The Japanese firm JTI which took


over Gallaher in 2007 announced the closure of its Ballymena


plant in 2014. More than 800 people


were employed at the factory. China has revealed its new senior


leadership committee but broke with tradition by not including


a clear successor to What does it mean for the future


of the Chinese economy? Just bring us up-to-date with what


has been happening, and what does this all mean for the economy? Five


new faces. What we now have is the upper echelons of power, the seven


person body, filled now with people who are loyal to President Xi and


what he wants to do with the economy. It continues to grow at a


rate that many in the West would envy, but the rate is slowing and


the government needs to deal with changes to big state-owned entities


that employ millions of people but are struck down by terrible


inefficiencies. Xi Jinping made it clear that he wants market reforms


to remain in place, but he wants few of them but more of them,, the


state-owned entities. We are not good to see sudden reforms that mean


big bankruptcies and more privatisation. That is not going to


happen. Asian shares outside of Japan edged


higher on Wednesday, while US Treasury yields


and the dollar got a lift following a report that Republican


senators were leaning towards John Taylor to be the next


Federal Reserve chief. That is a name you might hear a lot


more than the future. But, Tokyo's Nikkei share average


dropped for the first time in 17 days in choppy trade on Wednesday -


it looks like there's been some investor profit taking


following the recent record run of consecutive daily


gains helped this week by Prime Minister Shinzo Abe's


coalition winning Sunday's election. Meanwhile, here in Europe,


stocks have opened Wednesday. Fairly mixed, but it is only really


the London FTSE 100 that is slightly down.


And Samira Hussain has the details about what's ahead


Earnings continue on Wednesday with Coca-Cola reporting


Now, while it is best known for soft drinks it seems bottled iced coffee


Its rival, PepsiCo, reported a drop in soda sales in North America.


That could be an indication that Coke have gained some market share


Now, the world's biggest playmaker saw an increase in total


That was really led by more single-aisle 737 jets.


But fewer higher valued widebody deliveries.


Finally Visa, the world's largest payments processor


Now, with consumer spending rising, people were using the payment


That means this past quarter will likely have been a good


Richard Dunbar is Investment Director at Aberdeen


Good to see you, nice to have you on the programme. Some healthy earnings


reports from the US, helping to push the Wall Street stocks to a new


record high? Indeed, probably a good job. We are seeing reasonably good


results from the likes of Caterpillar, GM, it is a reasonable


result. Next, the generally good results from banks in the US. Tell


us what is happening with UK earnings? More mixed. There has been


a well-publicised drop in the pound and the pressure that puts on the


consumer. We have the likes of Whitbread yesterday, companies


finding it more difficult to make progress in the UK and more broadly


in Europe. Things are a little bit more difficult and that is what we


are seeing in the results coming through. I mentioned earlier that


finally that slight dip we have seen in Tokyo, after the huge consecutive


run of daily gains? Week now have a strong government, a weaker yen,


positive for exporters. Now the focus is back on what Prime Minister


Abe is going to do. The tax policy, interest policy and trying to


restore or improve some of the governance around the Japanese


corporate sector. We are going to focus on that. That is why the


market has weakened back to real life, if you like. That is where the


real challenge lies, the big structural reforms that seem to be


quite slow to actually come into practice? Cutting interest rates,


reducing tax is quite straightforward. The whole


restructuring, the changing governance, the change in the wake


Japanese companies do business, it is a very positive change. What we


have seen so far has been taken very well by markets. It is much more


difficult than the first two that he helpfully fired. We're going to talk


about the Albert Einstein note that fetched more than $1 million at


auction about happiness. Have a think about what your secret to


happiness is. I have been told the secret to happiness is champagne,


champagne and more champagne. That is one of the market guests. That is


Ron Jeremy, good to know that you are watching even when you are not


doing the markets. Still to come, Blackberry's comeback


- but without the iconic handset. We'll be speaking to


the Chief Executive about how the company's doing now it's left


the hardware market. You're with Business


Live from BBC News. Lloyds Banking Group profits soared


9% to ?2 billion in it's An upbeat trading update


from the bank called Theo Leggett has been


going through the numbers. It does generally seem to be good


news. What's interesting is the reaction from shareholders. As you


can see, the Lloyds share price did dip 1.5% on opening. This is largely


because the results are slightly lower than expectations. That is


because expectations were so high. Lloyds had a very good first half of


the year. The last quarter has also been very good. Figures massaged


edit by the fact that we have a big allocation for payment protection


insurance. Even so, if you look at the figures over the past nine


months, pre-tax profit of ?4.5 billion, up 38% on last year. It is


generating profits. The government has sold the final tranche of


shares. Things are looking up for this bank, I think. What is behind


the profit growth? If you listen to the chief Executive, simply that


they have a prudent approach to investing. That the UK economy has


remained largely resilient. Also worth noting that these results


don't contain any new provisions for PPI, payment protection insurance


compensation. In July, ?700 million was put aside for compensation, but


this time there is nothing put aside, even though it is still


getting a lot of applications. Getting out of the way is a


significant moment for the bank, as well as the fact that earlier this


year the government back are out. It is putting crisis in previous good


-- bad management behind it. Lovely stuff, thank you. Plenty of


stories updated throughout the day on the website. On there at the


moment, the fashion retailer jigsaw, talking about their marketing


campaign, with the chief executive saying it is not political, just


about basic humanity and values for us, saying we are a brand that


relies on a multitude of diversity, fabric from Italy, people from


Germany, people from Japan. We are showing that very few of us are 100%


British. More details of that on our website.


Our top story, the weed killer conundrum.


EU health experts will vote on whether or not to extend


Industry says it's harmless and necessary, but opponents claim


Now, let's talk about something a little bit different, shall we?


A full QWERTY keyboard, Blackberry Messenger and access


At the start of the decade, the Blackberry smartphone was as


But following the rise of both Apple and other Android-based rivals


the company's share price has since plummeted over 80%.


Last year, Blackberry took the landmark


decision to stop manufacturing the handsets which the company


Instead, the business is now focusing on online services


such as cyber-security and driverless car technology.


. Welcome. Good to see you. John, when he took over at Blackberry,


charged with turning the company around, what did you pinpoint as the


main problems that led to its demise from the dominant position it once


held? Well, we obviously were losing money and market share. You pointed


out a little bit earlier that we have some strong rivals that came


kind of out of nowhere, so with that, we were missing the then


trend. That was the issue we had to face. As I was saying earlier, you


took the decision about a year ago now to stop producing the formerly


ubiquitous Blackberry handset. Do you look back now at the decision


with regret, do you think it was the right thing to do? Well, first of


all, we didn't really leave the bones behind. We licensed to others


to build all these iconic things you mentioned. It is regret for only


that we used to do everything, from putting it together, but now we have


other people doing it. We licensed it and we manage the brand. I think


the good days of the phone could yet come back but Blackberry will get a


royalty payment however broadly they sell the phone. So your focus is now


very much on software and interestingly moving into the


driverless car technology said. It strikes me that almost every day


another company says they are going into driverless car technology. I


enter such a competitive field rather than focus on what you are


known for, cyber security, and just do that thing really well without


getting distracted? Wonderful questions. First of all, a car also


needs cyber security. Especially an autonomous driven car. It is very


packable. -- it is very easy to hack. So we are applying that


technology to cars. Secondly, we happen to own a company which is the


largest car software company, delivering 60 million cars software.


When I came into the company, I looked at all the assets, what do


you do well? So I said I will look at what we do well rather than what


you don't do well and cars happen to be one of the areas where we were


dominant. Although we embed software and sell through others, providing


it to the car manufacturer, you will see us getting a bigger and bigger


footprint. But are we right in thinking that you are perhaps not as


bullish as others in the market in thinking it may be longer than we


think before we see the driverless cars on our roads in a mainstream


way? Yes, I think there are a lot of problems to be solved and most of


them are not technological. Some of them are cost structure but a lot of


them are at Government level. We need to define how safe car must be


before it is allowed on the road. There are a lot of different things.


You can have a car driving along by itself as well as cars being driven


by people like us. Mistakes be made. A decision needs to be taken in a


split-second, so I think the public policy, the whole insurance market,


who is liable, everything has got to change, so it is not as simple as me


giving you a car. I could build you a car by 2021. I'd like to get back


to your question earlier. I think the car market is heat so huge that


it requires many players. So it is far from exaggerated.


John, just very quickly, do you think Blackberry has had its glory


days because it can never reproduce the dominant it had in that sector?


It was king, wasn't it? It was, but as I say, every car has security and


we manage that every day, so I think that is a dominance. John, thank you


very much indeed. John Chen, chief executive at Blackberry.


Yes, that is very interesting. Thank you.


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


The businesslike pages where you can keep up-to-date with all the gay's


breaking business news. We will keep you up-to-date with insight and


analysis from people worldwide. Get involved on the BBC's web page and


on social media. First, let's read through some of


the tweets you have been sending in because of the back of one of the


paper stories we have been looking at today about Einstein having


written this note about the secret to happiness and it being sold for


$1.5 million, we asked you what your secret to happiness was. One from


Barlow, finding another of Einstein's handwritten secrets. That


would make him happy. From back then, good company, good sleep and


good wine. Derek says not caring what others think about you. Ray


says family, food and football. And Jerome says sunset over the Thames.


Remember to appreciate the little things in life. Very good points.


Richard, your million-dollar secret to happiness. A free putt on the


golf course. I think shopping for handbags and shoes and never feeling


bad about yourself. How about you? I think focus on what


you have rather than what you haven't got. It's so cheesy, isn't


it? So much nicer than my response


though. Getting back to the article, what did you make of it? I


suppose we are going to focus instead on the situation in Dubai,


we have clients in Dubai, I have friends who do business in Dubai and


I have spent there myself. It is a place we can do business but it is a


different way of doing business, a different culture and a different


way of running a country, both in Dubai and in the broader Middle


East. Because this particular article in the independent follows


the arrest and subsequent release of 27-year-old electrician Jamie Haran


who was arrested in Dubai for public indecency and then this article was


written by the former managing director of Leeds united following


his experience of working in Dubai. Yes, he was trying to transact in


the football market, trying to buy assets into Dubai and ended up in


jail rather like Jamie Haran. There are obviously different experiences


people have of doing business in Dubai and the broader Middle East


and experiences are mixed but the culture, governance, the way of


running the country's, it is all difference. I was reading the


article on my way into work this morning and it goes into a lot of


detail about the experience of trying to get help and how difficult


it was. There are sensitivities, aren't there, as people don't want


to risk offending local customs and cultures but equally with this


example of, what was his name again, the Leeds united chap who was there,


he was just there to take a case to court and it went rather sour. A


really interesting article. Well worth a read. Richard, really good


to see you. We will see you again soon.


Thank you again for all of your tweets. We have so many this


morning. We will see you again soon. But by Finau. -- goodbye for now. It


is another mild start to the day across the south-east of England but


here we have got a bit of cloud and one or two spots of rain. That


should clear away and for most of us today it should be dry with good


spells of sunshine as well.


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