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This is Business Live from BBC News
with Sally Bundock and Ben Thompson.
A number of uses on the table as we
assess Switzerland and the EU
squaring up over cash.
Very warm welcome to the programme.
We are at the mercy of the robots
today with a few glitches! Will talk
you through what's coming up on
Business Live. In Switzerland
Jean-Claude Juncker will be holding
talks with the government, that's
coming up. Also as well in the
programme, more Japanese companies
seem to be accused of cheating. This
time Mitsubishi Materials is in the
limelight for the wrong reasons. And
for the markets today it will be
quieter with it being the
Thanksgiving holiday break in the
USA. Yet Europe is open and training
and as you can see the markets are
all headed south. And we meet the
man who revived an iconic brand, the
Royal Enfield motorbike, as it
returns to the UK for the first time
the 1950s. We will find out what has
driven that decision. And as holiday
shopping season begins is your
budget squeezed, are you planning on
spending more or less or just
cutting back on Christmas. Let us
no, using our hashtag, #bizlive. A
very warm welcome to the programme.
We live, this is Business Live. I
think we have our technical problems
sorted now so let's begin in
Switzerland. European Commission
President Jean-Claude Juncker will
be holding talks very soon with the
government. About trying to get the
strained EU - Swiss relations back
on track. The talks are being
closely watched in the UK not least
because Switzerland is held up by
some as a model for post-Brexit
Britain. Not in the EU yet enjoying
close trade ties all the same. When
it comes to the issues, the big ones
are very familiar. Money. That's one
of the key issues. The Swiss are due
to pay another 1 billion francs,
that's around 1 billion US dollars
to the EU's cohesion fund. That
supports newer members in Central
and Eastern Europe. It is a sticking
point. Another familiar one. This
issue has been on hold since
February 20 14th when this was
narrowly voted, in a referendum, to
bring back quarters for the number
of EU workers that they let in. --
quotas. Some see this as a test case
for Brexit. That can Switzerland get
the benefits of trade with the EU,
that is, access to the single
market, while still controlling its
borders? Many people see it that way
although not Jean-Claude Juncker. He
calls it a Swiss specific situation.
He said last year any deal reached
with Switzerland would not be a
blueprint for the UK. Ben, overdue.
Thank you. Let's speak to image and
folks who joins us from Burma.
Imogen we heard this would not be a
blueprint for the UK but there are
Yes, but some
differences as well. We know that
this was narrowly voted to introduce
quotas on EU migrants in 2014. After
that the EU put Switzerland's
bilateral deals, very important to
the Swiss economy, on hold. Since
then the Swiss have found a
compromise, which would mean
introducing quotas only in certain
sectors and only if unemployment
reaches levels that it has not
reached in Switzerland for decades.
So Switzerland 's commitment to free
movement of people remains
unchanged. That is something that
voters in Britain who wanted Brexit.
Want any more. So there's the
difference. In terms of payment, in
2006, this was, in a referendum,
voted in favour of 1 billion francs,
$1 billion, to the EU, what was then
the enlargement fund. Now it is the
cohesion fund. And it looks as if
this was government is ready to pay
up again to preserve what it sees as
the most crucial thing for
Switzerland and that is the trade.
More than half its exports go to the
EU. It can't have tariffs. And once
the single market. It doesn't want
WTO rules. So differences with
Britain -- it wants the single
What is interesting Imogen
is that very concept, if you want
some of the nice things like a
free-trade area or a customs union
and you want to do business with us
you will have to pay a bit, that's
what the Swiss have found.
there is a price tag attached.
Switzerland contributes to many EU
programmes. It wants access to
things like scientific research,
creative Europe, which is coming, it
wants access to all those things and
it knows it will have to contribute.
It thinks it gets more out in terms
of its good trade deals with the EU
yet there are sticking points. The
right wing party which proposed the
quotas are used this donation of 1
billion francs to the new EU states
is blackmail. There will be problems
getting it, but ducks as of this was
government will promise it to
Jean-Claude Junker today.
Interesting times, thank you, Imogen
in Burma. No other stories making
Foxconn, a main supplier for Apple's
iPhone, says it has now stopped
interns from working illegal
overtime at its factory in China.
It comes after a Financial Times
report found at least six students
worked 11-hour days at its iPhone
Ten plant in Henan province.
The US Federal Reserve looks
set to raise interest
rates again next month.
Minutes of its last meeting showed
a majority of committee members
saw the need for a rise
in the "near term".
That's despite concerns
about the weak level of inflation
which has been below the Fed's 2%
target for years.
The taxi app Uber is now facing
investigations in Italy,
the Netherlands and in the UK.
Uber failed to disclose
a hacking attack last year
where personal data from 57 million
customers and drivers was stolen -
and that it had then
paid-off the hackers.
The UK regulator has
said that the incident
raises 'huge concerns".
Now to Asia, there could be more
damage to the reputation of Asian
manufacturing after one company was
found to have been falsifying
quality data figures.
Today, reports say a division
of Mitsubishi Materials has also
been caught cheating.
Leisha Santorelli is following
the story in Singapore....
Leisha, an interesting one because
just after that scandal, potentially
Mitsubishi involved in something
Exactly Ben. That made in
Japan label seems to be losing even
more of a shine because of this
scandal. This comes from another
famous Japanese name, Mitsubishi,
and according to a report by Japan's
financial daily, a division of the
company called Mitsubishi Cable
Industries has been falsifying
product data for centuries. The
product is plastic seals used by
hundreds of companies in the
aircraft, aerospace and nuclear
sectors. It is no joke. Mitsubishi
has launched an investigation that
no safety issues have been reported
yet. Yet after that quality scandal
at the steel company as well as with
Subaru, which allowed and qualified
inspectors to sign off on their
vehicles, it looks like there's a
lot of soul-searching going on in
Japan as to how they can allow such
lapses to happen among their ranks.
Thank you so much Leisha. We will
keep an eye on that situation as it
Let's look at the financial markets.
On the one hand and has been quiet
because Japan has a public holiday
today, it had such a stellar day the
day before and in the final hour of
trading dipped dramatically by
nearly one percentage, in China, it
saw quite a big fall in share
markets in Shanghai mainland China.
There is no clear reason why this
happened but the dollar has been
extremely weak, which is not good
news for many markets trading in
Asia. Again for example, you know
you know what that does. In Europe,
no action in Wall Street because of
the Thanksgiving break. They are all
headed lower, we will talk more
about the markets, it was Budget Day
and the UK on Wednesday.
of the Exchequor has been speaking
to the BBC this morning -
again highlighting how Tory
plans will help young
people in particular.
It is about the future prospects of
Britain and the budget has been
designed to secure Britain's
prospects that the feature, to
assist the next generation, to help
them get on the housing ladder, give
them confidence that they will be
the high skilled high-paying jobs
available for them so they can
prosper in the future and we can
pass on an economy and a nation in
good shape to the next generation.
That was the Chancellor, Philip
Hammond, talking about the details
in his budget yesterday.
Mike Amey is managing director
and portfolio manager at PIMCO.
What did you make of the budget,
some giveaways but some debit
Yes, one was an
admission that growth will be slower
than we helped...
Slower than anyone
helped including the Bank of
The Bank of England has
some revisions to do as well, you
would've expected ten or 15 years
ago two and a half would have been a
normal number. On the other hand the
Chancellor is spending some money so
there's a bit of an increase in
spending relative to where we were,
that is what he was alluding to in
that clip about freeing up some of
the purse strings for spending.
Housing was a focus as well
certainly for first-time buyers. In
all of this, until we start building
more houses, nothing will really
change with the housing market.
key underlying problem there is if
you don't burden of houses relative
to demand you put pressure on
prices. That's the fundamental
problem. The change is how you
unlock that spending. The government
can make it easier for planning or
they can force home builders one
they've got these so-called land
banks to build housing. They are
trying to build a bit more on
encouragement rather than the
Let's talk about
the United States, the Federal
reserve minutes were released, they
tell us nothing we don't anticipate
for December, that is, a rate rise.
Quite concerned about the lack of
inflation in the US. A problem we
modern experiencing here.
be the fifth time that the US has
raised interest rates. To one point
4%. They have the opposite problem
to us. They have slightly higher
growth, 2% as opposed to our one and
a half but they have low inflation,
and their target is two, the same as
ours. They are approaching it
differently. Raising rates because
they can. The Bank of England is
worried about inflation staying
higher so it's a different dynamic.
The underlying message of this is
that we are getting to the point
where globally interest rates can
come of the lowest levels they have
Mike, for the moment, thank
you, we'll talk about some of the
stories in the papers later and the
cost of Christmas, many of you
getting in touch about whether you
are cutting back on spending for
Christmas, we will go through what
you say. Keep your messages coming.
Still to come...
A revved up homecoming -
after a revival in India,
we meet the man bringing this iconic
bike back to Britain.
You are with Business Live from BBC
Let's talk some more about the
So as the dust settles
on the autumn Budget unveiled
by the Chancellor yesterday,
what are the key points?
It depends how you die just it. Who
will benefit? We saw some of the key
points -- it depends how you die
Well, there's the help
for first time buyers,
a big homebuilding programme
and extra spending
on the National Health Service.
But, the independent
forecasting body, the Office
for Budget Responsibility,
says the economy is slowing -
with growth of just 1.5% this year.
That's behind most other major
economies and is making it harder
to cut our national debt.
Richard Jeffrey is Chief Economist
at Cazenove Capital Management.
Nice to see you, Richard.
What did you make of it?
was uninteresting budget. The
Chancellor didn't have much room to
manoeuvre but used the room that he
did have reasonably well. Most of
the attention was grabbed by this
downwards revision to the forecast
for growth and behind productivity.
A lot of evidence suggests that
growth in the economy at the moment
is being and recorded, and that
although not spectacular
productivity is slightly better than
the currently published numbers
suggest. Ironically, this might set
the Chancellor, because I think
growth would be a bit stronger than
the 1.5% that is being projected on
average for the next few years. It
might be one and the quarters, or
even 2%. If that's the case he will
have more room to manoeuvre in
future budgets than people currently
reckon. As I say, there is some
reason to suppose this. If we look
at Labour market data suggesting the
economy is much stronger than the
output numbers are suggesting.
Richard, good to top you. Thank you
for so much for explaining all of
There is lots more on the BBC News
business live website, including a
calculator. And there is also a
story about Christmas fraud,
smartphones and clothing, read all
the detail, keep informed.
You're watching Business Live -
our top story - Switzerland
and the EU square up over cash
and immigration - as the UK looks
on for signs of what might be
to come in a future post-Brexit
the European Union.
The UK will be watching with great
interest. We have been discussing
with our correspondence that in many
ways its payment for access to the
Common Market, the European market
and clearly a lot of questions
continue over that funding.
It's been more than a hundred years
since the Royal Enfield motorbike
first revved its engine.
First made in 1901 -
it lays claim to being one
of the world's oldest motorcycle
brands still in production.
During the first and second world
wars it supplied bikes
to the British forces.
In 1955 the company partnered
with Enfield India to manufacture
the motorbikes in the east
of the country.
Just over a decade later
the British firm went bankrupt.
But the name Royal Enfield has been
carried on by the India-based firm -
which now has plans to bring part
of the business back to the UK.
Siddhartha Lal is Chief
Executive of Royal Enfield.
He is with us now. Nice to see you
Let's talk about your involvement,
you've been doing this for quite a
file, you did this as a result of
your father's involvement.
Tell us about this.
has been through many potential
bankruptcies, it died once in the
UK, nearly twice in India, but it is
a resilient brand, finds its way
back into life and hopefully this
time it is for real. In the 90s, my
father bought this brand, it was a
link about to die, I was 18, I had
the scheming, lovely motor cycle, it
was obvious something really
interesting to me and I started
running the company in the year
2000, it was in a spot of trouble.
would imagine at the age of 18 it
was cool for dad to buy a water bike
company, James Dean and Steve
McQueen, famous users of it and
posing on them, but the bikes
weren't selling, the competition was
coming from Asia, extremely tough.
To sell bikes en masse, the markets
there, people want them, especially
What happened, as in the US, the UK,
Europe in the 60s, 70s, 80s, the
Japanese motorcycles came in they
were more efficient, cheaper, and
they were really good, they
destroyed the industry and the same
happened in India in the 80s, the
joint ventures came in, destroying
all the old-style motorcycle
companies including Royal Enfield
and it took us decades of not making
any money, not growing, the Indo
Japanese players were growing
tremendously and at that point we
found our resilience. We said we
don't want to be in a small
motorcycle market, we want to make
something delightful, fun and
leisurely and that's what you focus
on and we didn't grow for well over
a decade and in the year 2000 we had
a ramp and it's been growing ever
Do you think your growth
story in India is how the Indian
economy has developed in the sense
that more people, they are more
aspirational, they have more money
because your motor bikes are more
expensive than some of the cheap
Asian models that they could easily
opt for to do their commute.
Absolutely, art motorcycle is nearly
double the price but what happens,
around the year 2010, and everything
started working, it was the time
when the IT revolution and the boom
happened in India, people were
earning a lot more, some young chap
at 21 or 23 was earning a hell of a
lot more and he wanted to express
his individuality and difference in
a different way and we expect to be
able to take that to markets outside
India and that is the future of
Manufacturing still in India, your
research and development done a lot
in the UK, widespread that?
up a UK technical Centre, the team
we started holding a number of years
ago, that's got around 125 engineers
and it's growing. Over the last
decade when we could not afford so
many engineers we came to the UK,
the Midlands, that is where we found
the people who could resonate with
what we were trying to accomplish,
we came here for consultancy but now
we can afford more we decided to set
up our own bespoke centre and
dedicated team and these are people
who really understand leisure motor
cycling. In India we understand
engineering and manufacturing but
the leisure side of motor cycling is
what we are trying to get out of the
How are you going to grab the
market in the UK and elsewhere
outside India in a significant way
because some see it as a very niche,
kind of like a Rikard Karlberg, cool
bike, not necessarily a bike we will
see on the streets, alongside all
those Japanese manufacturers?
what we are in markets like the UK,
other such markets, we were a bit
more obscure, different, right?
Maybe integer placement but what's
happened as the result of our global
ambitions and the type of work we
do, our brand is still unique and
different and we have this all
school character and I believe a
vintage style looking but with a
modern under ten. And a green one as
well? Will... More than green...
It's very fuel-efficient, compared
to other motorcycles and what's
happening, we have a new range that
we will bring into markets in the
UK, they've been designed right
We will have to leave it
there, we are running out of time
but so good to see you. Thank you
for being on the programme. This is
how to stay in touch. We will keep
you up-to-date with the latest
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On Twitter and you can find us on
Facebook. Business live on TV and
online, whenever you need to know.
Mike is back in the studio, lots to
talk about, Black Friday tomorrow,
Thanksgiving today, get out and
spend but many are feeling the
Absolutely, two things going
on, Black Friday, historically
retailers go into profit for the
year. The challenge is retailers are
under a lot of pressure and you
certainly see that in the UK.
Further our continual pressure is on
the high street and the split
between Street and the Internet is
the key challenge, making the
transition obviously the one we look
So many retailers doing both,
in tandem and there was a big swing
over the last decade that everything
would go online and we like the
convenience of ordering online and
picking it up at the shop.
are a large retailer you need to
have a presence, people can
physically see the items that you
have to make sure they buy it off
you without going to another
website, that is the challenge for a
lot of retailers.
Are you guilty of
going into a store, you touch it you
feel it, then you go and buy it
I am not a very good
You are probably saving a
lot of money. Let's look at what you
are doing, Stewart says I am cutting
back significantly I cannot afford
it. Sorry to hear that. Anna says
Christmas sucks, I will spend as I
normally do, not feel pressured. I
want to know how Erica does her
budgeting, Lincolnshire, 350 quid
she limited her spending two, hoping
to beat it this year. Well done with
that. Mike, the other story
dominating, Uber, huge hacking
attack, paying off the hackers.
has been in the news a lot recently,
this is the latest story, do people
stop using the service, is this
enough to tip it over the edge, so
far it does not look like it but the
bad news is stacking up.
So nice to see you. Thank you so
much for your company. We will see
you same time same place tomorrow.
Have a great day. Goodbye.