13/11/2017 BBC Business Live


13/11/2017

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This is Business Live from BBC

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News with Sally Bundock

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and Jamie Robertson.

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Brexit summit at Downing Street -

the UK Prime Minister meets European

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business leaders to hear their views

on how to make a smooth separation

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from the European Union.

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Live from London, that's

our top story on Monday

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the 13th of November.

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Leading business experts

will press for a transitional

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period after the UK leaves

the single market.

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But what will Theresa May have to

say to them?

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Also in the programme -

a new passenger on board.

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Ride-hailing firm Uber strikes

a huge investment deal

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with Japan's Softbank.

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The European markets have opened,

and as you can see, they are mixed

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for now. We will talk you through

the winners and losers, and we will

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have the latest from the Asian

summit.

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Does your city need a make-over?

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Your country getting bad press?

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The Institute for Identity

could help - it's a company

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specialising in re-branding

for places British authorities say

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Kaspersky anti-virus software

could allow foreign governments

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to spy on you - so with all

the technology out there -

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do you think you're being listened

to or spied on?

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Just use the hashtag BBCBizLive.

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Hello and welcome to Business Live.

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Do get in touch. Let us know your

thoughts on technology and what it

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is listening to and hearing. Let's

start with Brexit.

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As Britain's departure

from the European Union draws ever

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closer there's growing scrutiny over

future trade links

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between the two sides.

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So for the first time,

Prime Minister Theresa May

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will welcome European business

leaders to Downing Street later.

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She wants their input

on how to minimise

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disruption after March 2019.

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15 leading business organisations

from across the continent,

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including experts from

the Confederation of

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British Industry and Institute

of Directors, will be there.

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Last year the UK exchanged

about 730 billion dollars' worth

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of goods and services with the other

27 EU countries.

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That amounts to 43 percent

of total UK exports.

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When it comes to goods,

the biggest share of that is taken

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up by cars and chemicals.

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Matthew Goodwin, senior fellow

at Chatham House, is with me.

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Are all the business is there

speaking with one voice? And what

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are they saying?

There are

businesses from 11 countries

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visiting the Prime Minister today,

and they do speak from one page.

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They want more detail on the

transition deal, saying to the Prime

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Minister, get on with sorting out

what Britain's going to pay to

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Brussels, let's really hammer home

the new trade relationship. There

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are other businesses that say,

actually, all of this is delaying

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what Brexit is really about, in

their view, which is getting on and

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signing trade agreements with other

countries around the world.

This is

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the difference between a soft Brexit

and a hard a soft one asking for are

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a Narine -- an arrangement that will

spread things out over two years.

Is

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absolutely right. It is about

getting a transition and then moving

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into a relationship that is similar

to the one we had before, which

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keeps business closed that single

market. Hard Brexit is crashing out

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of that into a sort of World Trade

Organisation model where you would

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have to be negotiating things like

tariffs and a much more complex

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relationship with Europe, but one

that you could argue would give

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Britain a bit more flexibility in

terms of those relationships with

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other countries.

Theresa May, is she

in listening mode?

She has to be.

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Business is a strong voice. Let's

not forget that businesses also

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concerned about the much higher

level of political volatility in the

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UK. We have a cabinet that is fairly

split, a Prime Minister that since

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the election is weaker, and a

resurgent Labour Party that has a

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different vision of what Brexit

would entail, and they will go in

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there today knowing that Theresa May

is under pressure.

That is

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interesting, because on one hand,

she has a party she has to hold

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together, but she also has not got a

reputation for being that business-

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friendly. A lot of the ideas she

came out with, workers'

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representative on boards, looking at

the size of bonuses, all that seemed

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to be anti-business, and one wonders

whether she really is that

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sympathetic to what they are going

to be saying.

The key line we need

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to be aware of is that between

business and voters. Some of Theresa

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May's proposals were not popular

amongst business, but they were

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popular amongst voters, and this

tension runs right through the

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Brexit debate.

That makes me feel

she may be more interested in what

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the voters think than what business

things.

The electorate are still

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very concerned over what they see as

an economy that is tilted towards

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London and the elite, in broad

terms, concerned that globalisation

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doesn't seem to be very fair, isn't

distributing resources in a fair

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way. But what is our new migration

policy going to be? Business says

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that we can't last migration because

it will hurt the economy. But those

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who voted to leave are saying that

they really want reductions in

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overall migration into the UK.

So

many circles to be squared. Thank

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you for joining us.

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Boeing has snatched up a dream

of a deal from its rival Airbus

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at the Dubai Air Show.

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Emirates has placed a preliminary

order for 40 of their 787

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Dreamliners in a deal worth

about $15 billion.

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That's a blow to Airbus, who was

expecting a deal of their own.

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The numbers are in from the world's

biggest online shopping

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event , Singles Day.

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Chinese internet giant Alibaba sold

$25 billion dollars' worth

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of deals on November 11th.

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Last year, Alibaba sales

hit a record 18 billion

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dollars in 24 hours.

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Britain's digital surveillance

agency, GCHQ, says it has concerns

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about Kaspersky anti-virus software.

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The Financial Times

says the software -

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given away free by Barclays to more

than two million customers - could

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be used as an intelligence-gathering

tool by the Russian government.

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That is the story were asking for

your comments on. We are asking the

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general question, are you concerned

that you are being spied on? We were

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talking about how we had a

conversation near to our phone and

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then we started getting adverts on

social media. Spooky!

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President Trump is now

in the Philippines to

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attend the ASEAN summit -

that's the Association

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of Southeast Asian Nations.

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He's been meeting the controversial

leader Rodrigo Duterte,

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whose drug war has claimed

thousands of lives.

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Leisha Santorelli is in Singapore.

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Tell us about today in Manila.

Sally, Donald Trump is on the final

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leg of his Asian tour and he met

with the Philippine president for

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about 40 minutes. According to

reports, the issue of human rights

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was only touched upon, which will

disappoint activists who have been

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calling for President Trump to take

a tough line over the Philippine War

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on drugs. The president is clearly

focusing on boosting trade and

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business ties and is said to have

discussed our bilateral trade deal

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with the Philippines. Apparently he

asked the Philippine president by

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American cars face higher tariffs

than Japanese cars being imported

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into the Philippines. It is all

about putting America first. He

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stressed that he is looking for fair

and reciprocal trade relationships

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in the region, so now he is pushing

towards more bilateral trade deals

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versus big multilateral deals. One

of his first acts on entering office

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was to pull out of the transpacific

partnership, so in his meetings

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today in the Philippines, it is

clear he is trying to boost ties

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with his counterpart there.

Very

interesting. Lots more on that on

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our website. Let's look at markets

in Asia. It is quite mixed. We saw

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Japan down this Monday, and as you

can see, other markets in Asia are

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fairly mixed. The pound sterling is

very weak versus the dollar, based

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on a lot of concerns around Brexit

and around Theresa May's position as

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Prime Minister. A lot of concern

about her support within her party.

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Let's look at Europe and see how

things are giving so far. The

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bitcalling is dropping. -- Bitcoin.

The marketing Europe are doing OK,

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if a little flat. On Wall Street,

Samir Hussein has the day ahead.

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Company earnings continue this week.

On Monday, we will hear from the

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number-1 meat processor, Tyson

foods. Increased demand for chicken

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will help cells, but the company

must content with falling poultry

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and beef prices. Also reporting is

General Electric. The new CEO is

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expected to cut earnings targets and

announce a plan to cut costs and

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boost profits. He is also likely to

announce management changes, Star

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productions and a dividend cut. This

comes as the 125-year-old industrial

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conglomerate tries to boost earnings

which stalled under their former

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CEO. Add in the coming week, we can

expect to hear from retail giant

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Walmart and its big competitor,

Target.

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Joining us is Nandini Ramakrishnan,

Global Market Strategist at J.P.

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Morgan Asset Management

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Good morning. The pound and the FTSE

100 are giving in opposite

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directions this morning. It is all

connected, isn't it?

They source 70%

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of their revenues from outside the

UK, so cheaper pound makes their

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goods more attractive. They are more

confident that they can sell goods

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and services to the rest of the

world. That is why it plays out in

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reverse directions.

The pound is a

volatile currency, but why is it

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going down?

It has been volatile

over the last year and a half,

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starting with the Brexit referendum

result. There is no business about

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the progress of the negotiations,

what will Theresa May speak to those

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business leader groups about today

and over the course of the week was

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like all these novas worries about

the strength of the UK position

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versus the rest of the Europeans.

The pound will move up and down over

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the course of the next few months

because of how uncertain some of the

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negotiations are.

What are you

watching out for this week?

A lot of

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data from China, retail sales, the

amount that consumers in China are

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spending. We will see industrial

production of China as well, and it

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will be good to see if the new China

story is coming through, the rise of

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the consumer rather than the

industrial oriented economy.

They

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spent $25 billion in 24 hours.

We

will leave it there.

Have a think

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about is whether you are worried

about being spied on. Are you being

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spied on?

Hope not!

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Still to come: Giving

geographical make-overs -

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we'll be speaking to a company that

does re-branding for

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countries and cities.

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You're with Business

Live from BBC News.

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Here in the UK, lots of companies

have come out with earnings.

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UK housebuilder firm Taylor Wimpey

has announced that it had strong

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second half year results,

supported by demand for new housing.

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However, it reported a slight dip

in its order book of 8,751 homes

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valued at £2.2 billion.

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This compared to last

year's order book of 8,981

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houses worth £2.3 billion.

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A small dip, to sum that up.

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What does this say

about the housing sector?

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Joining us now from Bristol,

is Laith Khalaf, Senior Analyst

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at Hargreaves Lansdown.

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Reading between the lines, the news

from Taylor Wimpey, what does it

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tell us about the strength of the

housing market and the construction

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sector?

It tells us it is pretty

strong. It is business as usual,

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really, if you look at the trends we

are seeing. They reflect the picture

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of across the last year and before

that, which is that the

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house-building sector is pretty

robust. It has been helped along by

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a number of tailwinds, one of which

has been low interest rates, of

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course, but we have also had the

help her by scheme which help people

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get mortgages as well. -- help to by

scheme. There are people who want to

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own a house but there aren't enough

to go around, so demand is high.

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What about the budget? Are their

worries that that will be bad for

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housing or good for it? It seems as

though there has been quite a lot of

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talk about more houses, but do you

think it will come to anything in

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the budget?

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We will have to wait until next week

to see. It is high on the agenda,

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this home ownership crisis. Question

is, what does the government do

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about it? That could befriend or

photo for the house-building sector.

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The way the government has played it

so far is, of course, that it is

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trying to incentivise and encourage

homeownership. -- friend or foe.

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Particularly in the private sector,

which has helped house-builders. But

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it might affect the government

building houses itself, which could

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in fact take business away from the

house-builders. It is up in the air

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on where we go on that.

Thanks very

much.

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You're watching Business Live -

our top story: A Brexit

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summit at Downing Street

later today - the UK

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The UK Prime Minister

will meet European business

0:16:450:16:47

leaders to hear their views

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on how to make a smooth separation

from the European Union.

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And now let's get the inside track

on Institute for Identity

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The complicated issue of a nation's

identity has become big business.

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How a state or a region or a country

is perceived on the world stage can

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add millions to its GDP.

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Recent events like the situation in

Catalonia, Brexit, and Donald Trump

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winning the election.

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Natasha Grand, originally

from Minsk, and her husband Alex

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have tapped into.

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They founded the Institute

for Identity in order to delve

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deeper into the psyches of some

of the lesser known Russian

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states and to brand them

to the wider world.

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How did you start this?

I was

working in the city as a political

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risk strategist. The region I was

covering spent a lot of money on

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making a nice show for themselves

but actually all they wanted to say

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is that they are all right, they

have good infrastructure, their

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ratings are fine, but what they

probably did not capture is that it

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is not what you should be saying,

everybody is saying the same should

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be talking about the about the

culture, the ethics in your region,

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the fact your people are

hard-working and want to be leaders.

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I think this sense of authenticity

and what people are really like is

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quite great for both investors and

visitors alike.

It's the unique

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selling point of a city, a country,

that kind of thing, which is surely

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already out there in terms of what a

city needs to do.

For some nations,

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even Britain sometimes, struggles

INAUDIBLE

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If you talk about lesser-known

places, it isn't just marketing, you

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have to look at the people.

The way they've probably never

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looked at themselves and say, this

is your tradition, your culture,

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this is how you do things, this is

what you should be telling about

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yourselves.

Britain is an

interesting one. What about England,

0:18:360:18:40

how would you market England rather

than Britain?

It's not just England.

0:18:400:18:45

If somebody doesn't want to set up

business in London, how can Kent and

0:18:450:18:51

Cambridge compete for this person?

Cambridge would have academic flair,

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biotech start-ups, but Kent is

closer to Europe, Manchester... You

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would think it is the same country

but there is still a lot of

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diversity in terms of people's

values. That is what is essential.

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It's not just selling. It's about

discovering these things.

Give us an

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example of what you've done. Of a

city that you've turned around. I

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know there are some in Central Asia

you've looked at and tried to help,

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tried to give them identity.

We

don't give it identity. If what we

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say does not resonate it won't work.

For example, mints, capital of

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Belarus, really lost in what they

should be. -- Minsk, capital of

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Belarus. Programming and software is

booming there. Don't invite tourist

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for historic venues, you don't have

any, invite them for a conference.

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It was bombed during the Second

World War. Well, some people say we

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are career advising nations. It's

about finding out what you're good

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at and finding out how to package

the result.

How do people get to

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know about what you are doing? You

and your husband started this

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company. I know you because I've

interviewed you in the past when you

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were a political analyst. I find it

fascinating that you birthed a

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country then you have to get out

there and convince the country that

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you are the person to turn it around

and give them identity. -- birth a

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company.

It was probably more

difficult, as it was word of mouth,

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especially with the first examples,

trying to prove we knew what we were

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doing. But we had the background.

And we are much more than a two the

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people company. We have designers,

researchers. There is still an

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appetite for that.

Does it work?

It

does.

How do you know?

It becomes a

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phenomenon. It's not just tourism,

it's fashion, its music on

0:20:550:21:02

everything it's like you add a drop

of ink into a glass of water...

Do

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you measure the tourism for finding

out your level of success, foreign

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investment?

You know instantly if it

works and if the locals start

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getting infused about it. -- infused

about it. If they start promoting a

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place, if they know what to say

about it, if young people want to

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buy into it, they say, this is our

smell, that's how you know. -- if

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young people want to buy into it,

for example, they know what to sell

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about themselves, that's how you

know.

0:21:410:21:43

How do you convince a whole group

of people to change the way they've

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been doing things forever?

0:21:460:21:47

You can hire Natasha!

0:21:470:21:50

CEO Ashish Malik, says it's

about appealing to their wallets.

0:21:500:21:55

My secret is we have to get inside

the head of the customer understand

0:21:550:21:58

what it is that keeps them up at

night.

0:21:580:22:02

Patience is the biggest thing. We

have to understand that changing the

0:22:270:22:32

mind of a grower who has been set in

their ways for several generations

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doesn't happen overnight. But we

have to ask a farmer, how was it

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improving your bottom line, how is

it making your crop more attractive

0:22:410:22:47

to their consumers. Producing

chemicals, things like that, we're

0:22:470:22:52

bringing value into it. Then we use

the fact that it is a more

0:22:520:22:56

sustainable thing. It's like the

icing on the cake. You want to find

0:22:560:23:02

progressive thinkers, people who

want new technology, and everybody

0:23:020:23:05

looks at their neighbours, see what

practices they are using, that means

0:23:050:23:10

it can be more successful, so

probably everybody will adopt it the

0:23:100:23:13

next season.

0:23:130:23:17

Talking about this big investment on

Japan's Softbank into Uber. Why are

0:23:170:23:26

they both interested?

You probably

would not expect this from a

0:23:260:23:31

Japanese Internet service provider

going into Uber. But it looks like a

0:23:310:23:35

match for both. Uber Could use the

capital from the purchase. And

0:23:350:23:45

Softbank diversifying into this

industry, being able to change the

0:23:450:23:48

governance in Uber, which they've

had a problem within the past.

That

0:23:480:23:54

is an understatement CHUCKLES

0:23:540:23:58

From the point of view of Softbank,

it crops up again and again, this

0:24:000:24:05

company we are talking about a lot.

They've invested in this come and

0:24:050:24:08

the other, now Uber.

Any of these

forward type technologies is a way a

0:24:080:24:18

company has its roots in the past,

or in other areas, can diversify.

0:24:180:24:24

What is Softbank, it's a very

diverse company?

I don't cover it

0:24:240:24:32

that much, but it is a huge company

in Japan. It primarily does the

0:24:320:24:37

Internet service providing in Japan,

as well.

We asked you if you are

0:24:370:24:44

concerned about being spied on, this

is because in the FT they are

0:24:440:24:48

talking about UK spy masters raising

suspicions over capacity software is

0:24:480:24:56

-- over Kaspersky software's Russia

links. Tell us more.

Nothing is

0:24:560:25:04

confirmed. It's things like this

software was offered for free to

0:25:040:25:12

Barclays consumers. And there are

suspicions from the US and UK that

0:25:120:25:15

this has ties to some of the

intelligence organisations in

0:25:150:25:18

Russia.

Some of the answers. Connie

Frickley says, I think there is

0:25:180:25:24

nothing in my life was spying on, so

how -- so it is a time and waste of

0:25:240:25:33

their -- so it is a waste of their

time and their money.

0:25:330:25:38

Another one says the government will

feel pity on me and sublimely with a

0:25:380:25:42

decent salary.

Another one says nothing to hide

0:25:420:25:44

apart from my wife's Christmas

presents.

0:25:440:25:47

CHUCKLES

Thank you for that. Thanks very much

0:25:470:25:51

for your company, and getting in

touch.

0:25:510:25:53

Goodbye.

Have a good day, goodbye.

0:25:530:25:58