09/11/2017 BBC Business Live


09/11/2017

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This is Business Live from BBC News

with Alice Baxter and Sally Bundock.

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Getting down to business -

the leaders of of world's most

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important economies sign industrial

deals worth more than $250 billion.

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Live from London, that's our top

story on Thursday, November 9th.

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China's Xi Jinping and Trump shake

hands on $250 billion

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of potential business deals,

including a pledge to buy 300

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airplanes from US aviation giant

Boeing valed at $37 billion.

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Also in the programme.

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The malls chases the fox. Could the

changing global media landscape see

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21st Century Fox sold to Walt

Disney? Will also have the latest

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market movements. Another

record-breaking day on Wall Street.

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In Europe a mixed picture. Will be

getting the inside track on the

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construction industry and the boss

he says the sector need more women.

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We'll be talking breakfast. Tiffany

's has got a brand-new offering

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which will set you back $29 for a

coffee and a croissant. We are

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asking you today, how much have you

ever spent on a coffee and

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croissant? Don't hold back, use the

hashtag.

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A warm welcome to you.

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President Trump and his Chinese

counterpart Xi Jinping have said

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they would work together to improve

trade relations on his

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visit to Beijing.

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In a departure from his recent

rhetoric, the US President said

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he does "not blame China"

for the trade deficit

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between the two countries.

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The two leaders signed industrial

cooperation deals worth

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more than $250 billion.

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And China said it would buy 300

airplanes from US aerospace giant

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Boeing valued over $37 billion.

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Mr Xi told reporters that

the Chinese economy was changing.

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Joining me now from Beijing is our

correspondent, Steve McDonell.

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Covering every twist and turn of

this China leg of the Asian tour of

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President Trump. Alice outlining the

fact they say they've done deals

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worth something like $250 billion. A

few bits of information is trickling

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in about General Electric proving to

be a winner, as is Boeing.

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Absolutely. It's interesting, we

just heard about that reference from

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Donald Trump where he said he

doesn't blame China for the trade

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imbalance between the two countries.

He said that in front of a gathering

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of business people from China and

the US. When he said that there was

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a bit of a gasp of surprise around

the rim. It's obviously a different

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tone from Donald Trump on the

campaign trail. That was hellfire

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and brimstone, we are going after

China on trade. Here he is with Xi

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Jinping and they are announcing all

these deals. Yes, there is talk of

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them adding up to $250 billion I

think. It's going to be something

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we'll have to have a look at

overcoming days and weeks. Some of

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them are more in the memorandum of

understanding category. Not

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necessarily actual contracts with

deliveries of units. And yet other

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parts of these, some of them do seem

to be the real thing. Xi Jinping has

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said that under Donald Trump, his

administration is ushering in a new

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spirit, a new time of cooperation

between the two. They needed to have

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something to show this. That's why

all these deals have been announced

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now.

You have your" announceable"

you've been looking for. In terms of

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what's going on now, US business

bosses want better access to China.

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Some of the big corporate have

really struggled to operate and make

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headway in the Chinese mainland

market, which is worth billions.

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Yes, and Xi Jinping has said today

that that is going to happen. He

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said there will be greater access to

China for US companies. The short

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time ago the Foreign Ministry said

there would be a timetable for some

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of these things, specific tax breaks

for the auto industry and the like.

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We will see what comes of those

announcements. Whether or not it's

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just all talk from Xi Jinping or

whether it's going to open up

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sections of the Chinese economy to

foreign investment. Of course,

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people who have tried to invest in

China will know there's certain

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parts of this economy, as a foreign

entity you can't just buy a coal or

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steel mill, there are certain other

parts of the economy you can only

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engage in the Chinese economy as a

joint partner. For a long time in

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the West and especially in the US,

they've been calling for greater

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access to the Chinese market and Xi

Jinping says it's coming. We'll see

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if it does.

Will watch this space.

Thank you.

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The chairman of 21st Century Fox,

Lachlan Murdoch, says

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the media giant is in good shape,

despite tough conditions.

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Fox reported better than expected

figures for the three

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months to September.

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But the real buzz has been

about reports it's held talks

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to sell off a huge swathe

of its business, most of its TV

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and film business, to Disney.

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The likes of Netflix,

Google and Amazon are now huge

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players in the media business,

as more of us stream movies and TV

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rather than watching cable channels.

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That's led to millions

"cutting the cord"

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with their cable provider -

five million Americans are expected

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to axe cable this year,

twice as many as last year.

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Disney is launching its own

streaming service in 2019

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and pulling its first-run movies off

Netflix.

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Buying Fox's studios would give it

access to much more content.

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Disney and Fox also each own around

25% of streaming service Hulu,

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another growing platform for content

if there was a deal.

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Still, Netflix is a streaming

stalwart and boasts 109

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million global customers.

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Media analyst Richard

Broughton is here.

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Good morning, Richard. Sitting in

patiently as we read that long

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intro. It's quite a tale. Give us

your take on Fox. Earnings fairly

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robust but we all want to know what

it's going to do next.

Fox as a

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business is in pretty good shape.

The story is more political and

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financial I suspect. There are two

be components to this for them, one

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is the ongoing Sky saga in the UK.

Fox controls 39% of pay TV broadcast

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on Sky and has been trying to buy

the remaining stake. That has been a

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bit of a regular Tory hot potato and

there is some suspicion it may not

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go ahead -- regulatory hot potato.

Fox may reconsider its strategy of

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reintegrating businesses and use the

cash to do something else.

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Simultaneously there has been some

concern over the departure of a key

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shareholder who controlled about 6%

of Fox. That doesn't sound like a

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lot but when you consider the

Murdochs hold 39% it makes a

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difference in key votes.

We've got

James Murdoch the son of Rupert,

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trying to get that deal through pass

the UK regulatory authorities. And

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the Prince, who sold the 6%, is the

one who's been imprisoned in Saudi

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Arabia.

It's a complex family and

friends story here. The easy part of

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the story is why Disney might want

to buy Fox. It's an attractive

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business and will complement the

core Disney business with all of the

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titles and media assets that Fox

controls.

The background is this

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great change on the media landscape.

This move away from cable networks

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in the States, more on Main Street

streaming.

Yes, and second quarter

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this year for US pay-TV was one of

the worst on record. People have

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been shifting to services like

Netflix, Amazon and Hulu, but also

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to this new trend of virtual cable

companies. Services like Sling TV

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which have a smaller package of

channels for a lower cost.

Thank you

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so much. There is a lot to discuss

there. If we say on that subject,

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because the top story in our

round-up today, the Chief Executive

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of AT&T has said he never offered to

sell CNN and has no intention of

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doing so. US regulators reviewing a

planned $85 billion merger between

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Time Warner and AT&T.

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Reports have suggested

they are demanding a sale

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of assets such as CNN

as a condition for approval.

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A familiar tale.

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Former top executives at Yahoo

and Equifax have apologised

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at a Senate hearing for security

breaches that exposed billions

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of customer accounts.

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Politicians are threatening

greater intervention

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in tech firms' business.

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Talks over the possible sale

of the film production company

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co-founded by Harvey Weinstein have

fallen through, the BBC has learned.

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The Weinstein Company had entered

into a preliminary deal with US

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private equity firm Colony Capital.

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There's more detail on this story on

our website. Remember the page is

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always updating with the latest

business news as it is breaking. On

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days like today when there's a lot

of corporate stories around, dig

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deep into the page.

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Let's look at markets and some

choppy trading over in Asia

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where stocks stayed closed

to a decade-long peak

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on Thursday following another

record-breaking day on Wall Street.

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Japanese shares ended the day

in the red on Thursday

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after dramatic intraday swings took

the Nikkei and Topix indexes

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to multi-decade highs -

with the Nikkei breaking the 23,000

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level for the first time

since January 1992, as financial

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and securities shares rallied -

only to later plunge

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in the afternoon on profit taking.

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Those swings on equities

lead to the the dollar

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slipping against the yen -

investors appetite for risk clearly

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taking a bit of a dampening.

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Meanwhile here in Europe stocks have

opened slightly down.

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And we have the details about what's

ahead on Wall Street Today.

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To media giants will be reporting

earnings on birthday. First up Walt

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Disney. Their theme park will be a

big driver of growth for the

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company. But, in the movie

department, Disney hasn't had any

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real blockbusters. So that's going

to be looked at as a negative. Next

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up the Rupert Murdoch owned

Newscorp. Analysts are expecting

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some growth in revenue. But an

ongoing decline in demand for print

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-based advertising is affecting the

company's biggest source of revenue.

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Also reporting earnings, Equifax.

This will be their first earnings

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report since a massive hack in which

the data of 145.5 million Americans

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may have been stolen. And finally, a

slew of department stores will also

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be reporting results including

Macy's, and Coles.

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Joining us is Jane Foley, Senior

Currency Strategist, Rabobank.

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Good morning. Alice, Samir talking

about some of the stories in the

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markets. What caught my attention

today is Japan, partly because of

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the Aaron wake. Japan seems to be

creeping higher and higher in the

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background.

If you include

September, Japan has had the longest

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spate of recovery since the Second

World War.

You mean share market

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recovery or economic recovery?

The

growth of the economy has been

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growing for more months than before.

It had a really strong... In fact

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it's been one of the global success

stories of the year, Japan.

Is that

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slow incremental growth? Nothing

that headline grabbing.

We haven't

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noticed. But there has been this

economic expansion. Part of it is

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related to the yen. The value of the

yen is relatively soft and that has

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obviously helped them. Japan is a

big exporting nation. China great

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has been good this year. Global

growth is quite strong this year

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which has helped Japan. Oil prices

have been cheap. They don't have

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natural resources, they import a lot

of their energy particularly since

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the nuclear crisis. That has helped

them too. Oil is creeping up and

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given them a inflationary boost.

Thank you. We'll be back to talk

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about the business papers. No time

to talk about Brexit negotiations

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because time is ticking. But we are

going to be discussing breakfast at

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Tiffanys!

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Will also be talking about the

construction industry where B ask

0:15:050:15:08

one company boss why so few women

joined the building profession.

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You're with Business

Live from BBC News.

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It's a really busy day for corporate

stories. We've heard from the likes

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of Sainsbury's and so on. We also

want to mention this story.

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Regional airline Flybe has reported

a 47% drop in adjusted pre-tax

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profit to £8.4 million.

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The firm attributed the decrease

to a "previously announced one-off

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onerous IT contract provision

and the impact of increased

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aircraft maintenance costs,"

as well as the drop in sterling.

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John Strickland, aviation

consultant, can explain more.

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That is definitely management-speak.

We need him to help us make sense of

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that! What does it mean?

They are

trying to make it more relevant to

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the space of the market they operate

on. They had some space to try to

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improve reliability of operation.

Flybe, many viewers will know, is an

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important regional carrier in the

UK. Not so active in London but came

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back into Heathrow earlier this

year. Importing for Southampton,

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Birmingham, Manchester, and up in

Scotland, and they are really not

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competing with the likes of easyJet

and Ryanair, but with others. A new

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management team this year and trying

to make progress. In some ways they

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have been dealing with challenges

from the past.

A lot of changes for

0:16:410:16:45

Flybe, has in there?

Yes, and you

CEO came in in January -- a new CEO

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came in, with a lot of experience

from city Jet and Air France and the

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experienced in the industry. The

fleet they have got is actually too

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big for the job and they have many

new aircraft previous management had

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ordered some years back and they are

trying to digester that and indeed

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get rid of some of those aircraft.

They have had to sell almost at any

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price to sell the seats inherited

and RSS are getting much better grip

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in terms of prices. The revenue

story today is very positive. We

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have seen revenues rising.

Will have

to leave it there, John Strickland,

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thank you very much. Let's mention

Sainsbury's. Profits falling by 9%,

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£251 million, that is the 28 weeks

until the 20th of September. The

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boss of Sainsbury's has been talking

to BBC breakfast and you can read

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more about him on our website. --

until the 28thth of September.

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You're watching Business

Live - our top story:

0:18:040:18:06

Getting down to business - the

leaders of the world's biggest

0:18:060:18:14

economies shake hands on some $250

billion worth of deals.

0:18:140:18:18

A quick look at how

markets are faring.

0:18:180:18:26

Following a bumper session in Asia

you can see flat to down in London,

0:18:260:18:30

Burberry shares down quite a bit on

the back of their earnings as well,

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as you can see.

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Now, let's get the inside track

on the construction industry -

0:18:350:18:38

and the particular challenges faced

by high security projects.

0:18:380:18:42

Gilbert-Ash is a firm based

in Northern Ireland and London,

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with more than 180 staff.

0:18:450:18:47

It specialises in construction

and renovation work,

0:18:470:18:48

and has delivered British,

US and Polish embassies

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in dozens of countries.

0:18:520:18:57

Joining us now in the studio is the

boss of that company, Ray

0:18:570:19:04

Hutchinson, the managing director of

Gilbert-Ash. Thanks for joining us.

0:19:040:19:08

Good morning. Looking at your

company in a bit more detail is

0:19:080:19:12

actually quite fascinating, to see

what you do, building embassies all

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over the world, in very challenging

environments in some cases.

Indeed,

0:19:170:19:21

that is right. We are very proud of

our record thus far and what we have

0:19:210:19:25

done around the world, we have

worked in 43 countries around the

0:19:250:19:28

world, and as you say each of those

countries is very unique and

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challenging in its own particular

way. What we bring is a very

0:19:380:19:40

proactive approach to that, and I

think one of the most important

0:19:400:19:43

things from our perspective is the

fact we immerse ourselves in the

0:19:430:19:45

country of each of the country's --

in the culture of each of the

0:19:450:19:48

countries we work on, and we embrace

the people locally and embrace the

0:19:480:19:50

culture and I think that benefits

everyone and is why we have been so

0:19:500:19:53

successful so far.

One of those

challenging environments was Nepal

0:19:530:19:58

after the earthquake. Her

challenging was that?

Very

0:19:580:20:01

challenging. In 2015 the earthquake

sadly killed 9000 people and in the

0:20:010:20:06

immediate aftermath of many

organisations look to strengthen

0:20:060:20:09

their buildings and Commonwealth

office strengthening a number of

0:20:090:20:18

their embassy buildings, so that was

hugely challenging.

That must be

0:20:180:20:21

difficult in a place like Nepal

which is incredibly poor, and I know

0:20:210:20:25

since that earthquake they still

have so many infrastructure

0:20:250:20:28

challenges. They have not got the

money to fund fantastically strong

0:20:280:20:32

buildings, get you are in the middle

of all of that was lots of money

0:20:320:20:35

from the UK Government to build a

very robust building for British

0:20:350:20:39

ambassadors?

Yes, but the important

thing from our perspective is it is

0:20:390:20:43

not just a simple case of us showing

the people in the countries and the

0:20:430:20:48

places in which we work how to do

things, but we learn from that as

0:20:480:20:51

well. It is sharing ideas and

practices. In Nepal for example we

0:20:510:20:55

used a lot of the local workforce,

we employed a lot of local

0:20:550:20:59

companies, so they have benefited as

a result of us being there are every

0:20:590:21:03

bit as much as we have done so by

being there.

Something else you push

0:21:030:21:13

is gender equality. You have 50% of

the workforce female, incredible?

It

0:21:130:21:15

is remarkable, and I think Nepal had

suffered a lot because many of the

0:21:150:21:18

local construction force had left to

work in the Middle East, and in the

0:21:180:21:21

immediate aftermath of the

earthquake there were huge labour

0:21:210:21:25

shortages and they address that by

employing more women into the

0:21:250:21:27

construction industry. As you say,

we had 50-50 male and female

0:21:270:21:34

balance. Remarkable.

And that is not

just in Nepal but something you are

0:21:340:21:38

trying to push throughout your

project?

Indeed. Certainly from our

0:21:380:21:43

perspective it is very high on our

agenda, the diversity. Our

0:21:430:21:49

organisation, other 21% of our

workforce is female, which might not

0:21:490:21:53

seem particularly high, but relative

to the sector, it is about 11%

0:21:530:21:57

female, so we are very good in

respect of that and it is something

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we are continuing to try to promote,

to get more females in the

0:22:000:22:04

construction.

You are a company

based in Northern Ireland and here

0:22:040:22:08

in London. Tel us about Brexit,

because it is impacting the

0:22:080:22:13

construction industry generally

speaking in a massive way and will

0:22:130:22:19

do in the future. What impact will

it have in your country given that

0:22:190:22:22

you work all over the world and not

just in Northern Ireland and the UK?

0:22:220:22:25

We are planning a number of things

the minute. Like any business there

0:22:250:22:27

is an uncertainty around it but we

are trying our best from our

0:22:270:22:30

perspective to try as blessed we can

for every contingency that might

0:22:300:22:33

come around. There are a number of

areas we are conscious of, for

0:22:330:22:38

example migration, very important

from our perspective -- we are

0:22:380:22:41

trying our best to prepare for every

contingency that might come up. Many

0:22:410:22:53

of our products are from the UK so

we need to make sure imports are

0:22:530:22:57

friendly.

And many company bosses

listening to you are saying, yes, we

0:22:570:23:02

need that as well! Ray Hutchinson,

thank you for coming in. Good to

0:23:020:23:05

have you on the programme.

Thank

you.

0:23:050:23:12

In a moment we'll take a look

through the business

0:23:120:23:14

pages, but first

here's a quick reminder of how

0:23:140:23:16

to get in touch with us.

0:23:160:23:18

The Business Live page

is where you can stay ahead

0:23:180:23:20

with all of the day's

breaking business news.

0:23:200:23:22

We'll keep you up-to-date

with all the latest details,

0:23:220:23:24

with insight and analysis

from the BBC's team of editors

0:23:240:23:27

right around the world.

0:23:270:23:30

And we want to hear from you too -

get involved on the BBC

0:23:300:23:33

Business Live web page

at bbc.com/business,

0:23:330:23:35

on Twitter we're @BBCBusiness,

and you can find us on Facebook

0:23:350:23:37

at BBC Business News.

0:23:370:23:45

Business Live,

on TV and online -

0:23:450:23:47

whenever you need to know.

0:23:470:23:48

What other business stories has

the media been taking an interest

0:23:480:23:52

in today?

0:23:520:23:53

Jane Foley is joining

us again to discuss.

0:23:530:23:58

Good morning. Good morning. I am

feverishly

typing here! You carry

0:23:580:24:04

on!

Reading vulgar, what I do with

my time!

We asked viewers to tweak

0:24:040:24:13

in about the most expensive

breakfast they had ever had. As

0:24:130:24:17

reported, from Friday in New York at

Tiffany's you can now buy a copy for

0:24:170:24:25

$29 -- a coffee. Justin has had a

rubbish hamburger in Dubai Airport,

0:24:250:24:32

not very good.

Is that breakfast,

hamburger?

For me it is

airports,

0:24:320:24:46

you know you were to eat because you

won't get any food on the aeroplane,

0:24:460:24:50

and you reluctantly have to part

with too much money for a very small

0:24:500:24:53

breakfast.

Would you like to have

breakfast at Tiffany's?

$29 is a

0:24:530:24:58

little pricey for me. It would have

to be a birthday or some kind of

0:24:580:25:03

celebration. It is quite

interesting, in Vogue, perhaps a

0:25:030:25:09

representation of the audience,

because they see Tiffany's is going

0:25:090:25:12

towards a younger audience. $29? It

does not sound that affordable to

0:25:120:25:22

me, for coffee.

And doubling female

members on their walls...

Yes, the

0:25:220:25:31

FTSE 100, the figures on women,

progress, but still work to be done.

0:25:310:25:35

We will be saying that for a while

but still time to make progress.

0:25:350:25:40

Going in the right direction. Thank

you for your time today. And thank

0:25:400:25:45

you, too, for your company. I

imagine people tucking into their

0:25:450:25:48

coffee and cry song as they watch.

We will do that right now! See you

0:25:480:25:52

soon. Thanks for watching -- there

coffee and croissant.

0:25:520:26:05

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