0:00:00 > 0:00:02The European Union will reveal all in a few hours.
0:00:02 > 0:00:03Live from London, that's our top story
0:00:03 > 0:00:13on Monday the 29th of January.
0:00:25 > 0:00:26British Prime Minister Theresa May
0:00:26 > 0:00:28is facing battles within her own party over the terms
0:00:28 > 0:00:31of leaving the European Union.
0:00:31 > 0:00:36Just as Brussels tells the UK what it expects. We will talk through
0:00:36 > 0:00:38what is at stake.
0:00:38 > 0:00:39Also in the programme...
0:00:39 > 0:00:41How education is changing to prepare students for jobs
0:00:41 > 0:00:42in Artificial Intelligence, Augmented Reality and Robotics.
0:00:42 > 0:00:45We take a closer look.
0:00:45 > 0:00:50A brand-new business week is under way. Most of the markets are headed
0:00:50 > 0:00:54higher. We will tell you all you need to know.
0:00:54 > 0:00:59The need for weed, as cannabis is being legalised
0:00:59 > 0:01:01across the United States.
0:01:01 > 0:01:04We meet one company is helping to turn local pot
0:01:04 > 0:01:05growers into big business.
0:01:05 > 0:01:07But, do you think that cannabis should be
0:01:07 > 0:01:08treated the same way as tobacco and alcohol?
0:01:09 > 0:01:11That is what we are asking today.
0:01:11 > 0:01:12Let us know.
0:01:12 > 0:01:22Just use the hashtag BBCBizLive.
0:01:23 > 0:01:27Don't hold back. Tell us what you think about the legalisation of
0:01:27 > 0:01:36cannabis and its sale en masse in places like Colorado. It is a hot
0:01:36 > 0:01:39debate.
0:01:39 > 0:01:40Brexit dominates the headlines again.
0:01:40 > 0:01:43The UK Prime Minister is said to be fighting battles within her
0:01:43 > 0:01:45Conservative Party over the terms of leaving the European Union
0:01:45 > 0:01:49and today the EU is expected to sign off on what it wants for
0:01:49 > 0:01:50the all-important transition phase.
0:01:50 > 0:01:57There are two key dates.
0:01:57 > 0:02:00The 29th March next year is when the UK government insists
0:02:01 > 0:02:05it's leaving the EU.
0:02:05 > 0:02:07The second is 31st December 2020.
0:02:07 > 0:02:12That's when the EU wants the so-called transition period to end.
0:02:12 > 0:02:17And Brussels says the UK will stay in the customs
0:02:17 > 0:02:20union and single market until then, which means EU rules continue
0:02:20 > 0:02:22to apply even though the UK will have no say
0:02:22 > 0:02:25in making any changes.
0:02:25 > 0:02:27One big disagreement is likely to be over
0:02:27 > 0:02:29international trade deals.
0:02:29 > 0:02:33The EU argues that whilst the UK is still in the single market
0:02:33 > 0:02:38it can't sign its own trade deals without approval from Brussels.
0:02:38 > 0:02:41But, on Friday, the UK's Brexit Secretary, David Davis,
0:02:41 > 0:02:46insisted the UK would be free to sign its own trade deals
0:02:46 > 0:02:50during the transition period.
0:02:50 > 0:02:57Simon Usherwood is deputy director for UK in a Changing Europe.
0:02:57 > 0:03:03Nice to see you. Welcome. A phrase we will hear a lot over the next
0:03:03 > 0:03:07bidets is negotiating directives, isn't it? That will move us on to
0:03:07 > 0:03:14the next step.What is at stake? This is the second phase of the
0:03:14 > 0:03:19talks, the Article 50 process of the UK leaving. We have talked about
0:03:19 > 0:03:23citizens rights and finances and Northern Ireland. Now we are talking
0:03:23 > 0:03:27about the transition arrangements, the period until we can get a new
0:03:27 > 0:03:36relationship in place and getting a feel of what the new relationship
0:03:36 > 0:03:39might be.There are two dates which will affect all of this was whether
0:03:39 > 0:03:42it is 2018 or 2020 at which time the transition phase will have ended.
0:03:42 > 0:03:49There is a big debate about what happens when.It is about trade
0:03:49 > 0:03:54deals that need to be signed. And what rules need to be applied. What
0:03:54 > 0:03:58you are saying is that should look pretty much like membership except
0:03:58 > 0:04:02that the UK will not have a voice and a vote in most ago she Asians.
0:04:02 > 0:04:08The consequence of that is everyone wants to try to keep this nice and
0:04:08 > 0:04:13compact and shorts and we can move on to the new arrangements.--
0:04:13 > 0:04:17negotiations. We know it does not always go to plan and perhaps there
0:04:17 > 0:04:22is not enough time to stop one thing is about immigration and the
0:04:22 > 0:04:27movement of trade deals. Potentially people from the European Union could
0:04:27 > 0:04:32still settle in the UK right up till the end of the transition phase?If
0:04:32 > 0:04:36the UK is going to be applying the EU laws and rules, as does as a
0:04:36 > 0:04:47member, that includes free movement. UK citizens leaving in the EU,
0:04:47 > 0:04:49places like Spain is still have the same rights and access as they do at
0:04:49 > 0:04:54the moment. That will be a problem for domestic political audiences
0:04:54 > 0:04:58who, for many of them, they wanted to leave the EU to limit those kinds
0:04:58 > 0:05:04of things.So, another two years of something they wanted to stop. Also
0:05:04 > 0:05:08about trade. The UK is very keen to start striking new trade deals with
0:05:08 > 0:05:13countries around the world. They cannot do that potentially until
0:05:13 > 0:05:182020.David Davis was talking about negotiating new deals and signing
0:05:18 > 0:05:23them. As a member, the UK cannot sign its own trade deals.
0:05:23 > 0:05:28Potentially there might be room for agreement where the users, you can
0:05:28 > 0:05:32start the ball rolling to reduce the gap between ending the EU
0:05:32 > 0:05:38relationship and starting the UK ones with third countries around the
0:05:38 > 0:05:47world.The UK are negotiating in Brussels and there is a lot of
0:05:47 > 0:05:50uncertainty in Westminster, not least with Prime Minister Theresa
0:05:50 > 0:05:53May and her government that potentially the Cabinet want
0:05:53 > 0:05:57different things.This is the real concern on the side of the EU as
0:05:57 > 0:06:01much as anything else. The EU does have a clear line on what it wants
0:06:01 > 0:06:06to do and how it wants to do it. With that uncertainty, particularly
0:06:06 > 0:06:11with the election last year, Theresa May looks insecure in her position.
0:06:11 > 0:06:17If the unrest in the backbenches continues, we will see more and more
0:06:17 > 0:06:22caution which will make it more difficult to reach a deal.One thing
0:06:22 > 0:06:27for us to watch very closely. Nice to see you and thank you for
0:06:27 > 0:06:29explaining that.
0:06:29 > 0:06:31Let's take a look at some of the other
0:06:31 > 0:06:32stories making the news.
0:06:32 > 0:06:35President Donald Trump's national security team
0:06:35 > 0:06:38is looking at options to counter the threat of China spying on US
0:06:38 > 0:06:39phone calls.
0:06:39 > 0:06:41According to a senior White House official,
0:06:41 > 0:06:50the proposals include the Government building
0:06:50 > 0:06:51a super-fast 5G wireless network.
0:06:51 > 0:06:53An investigation has been launched after a firm allegedly
0:06:53 > 0:06:55sold millions of fake followers to social media users.
0:06:55 > 0:06:57The company, Devumi, stands accused of stealing
0:06:57 > 0:06:59the identity of real people, and using them to
0:06:59 > 0:07:00create fake accounts.
0:07:00 > 0:07:02That's according to the New York Times.
0:07:02 > 0:07:04The firm has denied the allegations.
0:07:04 > 0:07:06Ford's China chief Jason Luo has resigned,
0:07:06 > 0:07:07after just five months in the role.
0:07:07 > 0:07:09His resignation was effective immediately, the company
0:07:09 > 0:07:12said in a statement.
0:07:12 > 0:07:15Luo was responsible for leading the carmaker's operations in China,
0:07:15 > 0:07:21including its import business.
0:07:21 > 0:07:24The Australian government has set out plans to become one
0:07:24 > 0:07:26of the world's top ten arms exporters over the next decade.
0:07:26 > 0:07:29The Defence Industry Minister said grants to help arms manufacturers
0:07:29 > 0:07:33increase sales could create tens of thousands of jobs.
0:07:38 > 0:07:42Google has announced a $100 million investment
0:07:42 > 0:07:47in the ride-hailing company Go-Jek.
0:07:47 > 0:07:50What does it mean?
0:07:50 > 0:07:53Karishma Vaswani is in Singapore for us.
0:07:53 > 0:08:00We know there is a battle between the likes of Lift and Gruber. And
0:08:00 > 0:08:07now this company Go-Jek.I am sure people in this part of the world are
0:08:07 > 0:08:12familiar with it but audiences in Europe may not know. Go-Jek the
0:08:12 > 0:08:19company that is very much part of the big ride hailing competition for
0:08:19 > 0:08:26passengers out on Southeast Asian streets. It has rivals such as Uber
0:08:26 > 0:08:33in this region, as well as Grab. Sources at Google said the company
0:08:33 > 0:08:40is pumping some $100 million worth of investment into Go-Jek was this
0:08:40 > 0:08:48marks Google's first ride hailing app investment. Other investors are
0:08:48 > 0:08:54companies in China. You are starting to see this part of the world being
0:08:54 > 0:08:57carved up into various directors decided who they are going to bet on
0:08:57 > 0:09:07in this competition. You have Uber and Grab being backed. But Go-Jek is
0:09:07 > 0:09:11the prize in this part of the world, not just for ride hailing but the
0:09:11 > 0:09:15internet market as well.
0:09:15 > 0:09:22Let's have a look at the financial markets. In Asia, it was a bit of a
0:09:22 > 0:09:29mixed day. It got fairly mixed as the day progressed. Some things to
0:09:29 > 0:09:34keep in focus, last week there was a lot of talk about protectionism and
0:09:34 > 0:09:38also weaker dollar policy. That was buffeting markets to a degree around
0:09:38 > 0:09:43the world last week. That was all coming out of Davos, the World
0:09:43 > 0:09:47Economic Forum. People are back focusing on earnings and economic
0:09:47 > 0:09:52news. Let's have a look at Europe. You can see London up slightly for
0:09:52 > 0:09:56the back is the story across the board. Earlier you can see the
0:09:56 > 0:09:58Spanish markets are lower. Many commodities are doing really well
0:09:58 > 0:10:04for you have a weaker pound sterling probably because of the conflict
0:10:04 > 0:10:06over Brexit.
0:10:06 > 0:10:08And Samira Hussain has the details about what's ahead
0:10:08 > 0:10:11on Wall Street Today.
0:10:11 > 0:10:15Fresh consumer spending numbers come out on Monday for that this is
0:10:15 > 0:10:18important because consumer spending accounts for two thirds of all US
0:10:18 > 0:10:22economic activity. The commerce Department is expected to report
0:10:22 > 0:10:29consumer spending will have picked up by .6% and shipments of capital
0:10:29 > 0:10:35goods orders increased for the tenth straight month. Also happening,
0:10:35 > 0:10:41negotiations for the sixth and penultimate round of talks in
0:10:41 > 0:10:47finalising the North American Free Trade Agreement. Time is running out
0:10:47 > 0:10:52for Canada and Mexico to tackle what they call unacceptable demands by
0:10:52 > 0:10:59the United States. On Monday we will hear from the Pentagon's number one
0:10:59 > 0:11:07weapons supplier. It is expected to report its fourth-quarter results.
0:11:07 > 0:11:11Joining us is Michael Hewson, chief market analyst at CMC markets.
0:11:11 > 0:11:16Let's stay with the US. That is the focus for markets this week.
0:11:16 > 0:11:20Certainly what I am paying particular attention to this week.
0:11:20 > 0:11:25It has been the worst start for the US dollar since 1987 in terms of
0:11:25 > 0:11:30performance. We have seen six successive weekly declines since the
0:11:30 > 0:11:36last Fed meeting. I will pay attention to whether or not the
0:11:36 > 0:11:39Federal reserve upgrades its economic forecast for the year ahead
0:11:39 > 0:11:44in light of the recent tax cuts that were implemented by the Obama
0:11:44 > 0:11:50Administration. I think it would be a big week for the dollar. Will we
0:11:50 > 0:11:56see a rebound after six weeks of declines?Just on that point, the
0:11:56 > 0:12:01pound is weaker today. Is that because the dollar is coming back a
0:12:01 > 0:12:04bit or is it because of concerns about Theresa May and what is
0:12:04 > 0:12:10happening with regards to Brexit?I don't think concerns about Theresa
0:12:10 > 0:12:14May and Brexit at anything new if you look at what the pound has done
0:12:14 > 0:12:20since August, it is up 7% on a trade weighted basis. What we have seen
0:12:20 > 0:12:24today is a bit of a dollar rebound was if you look at the pound against
0:12:24 > 0:12:32the euro, it is pretty much flat on the day.What else are you watching
0:12:32 > 0:12:36out for? Any earnings you want to keep an eye on?There are
0:12:36 > 0:12:41significant earnings coming out this week. Particularly the oil
0:12:41 > 0:12:45companies. Will the higher oil price be reflected in the headline
0:12:45 > 0:12:50numbers? Will the return of the dividend signify by other rises in
0:12:50 > 0:12:57the share price?As always, it is good to talk to you. Talking us
0:12:57 > 0:13:10through what the city is keeping an eye on. Let's talk about a story
0:13:10 > 0:13:15about that cannabis industry. One company that is helping marijuana
0:13:15 > 0:13:24owners turn their plants into big business. You are with Business Live
0:13:24 > 0:13:25from BBC News.
0:13:37 > 0:13:43Is your job is safe from the rise of robots? People in the Midlands are
0:13:43 > 0:13:48more vulnerable to the rise of automation. We have been finding out
0:13:48 > 0:13:54more. It is machines like these that are starting to take the place of
0:13:54 > 0:13:58workers more and more for that this is a car park distribution centre in
0:13:58 > 0:14:01Chesterfield. The reason they are improving as a business businesses
0:14:01 > 0:14:06because they are getting more and more automation. This report
0:14:06 > 0:14:09highlights the fact they think of this that the jobs in the UK could
0:14:09 > 0:14:15be at risk. More importantly, they say, the benefits may only be seen
0:14:15 > 0:14:25in the south of England and the south-east of England, London and
0:14:25 > 0:14:27the South East. The North and the Midlands, the East Midlands like
0:14:27 > 0:14:30here, could see not so much of the benefits of that. When you look at
0:14:30 > 0:14:33the potential benefits of automation and robots quite you can see
0:14:33 > 0:14:39businesses like these can become more efficient.There are going to
0:14:39 > 0:14:44be job losses over the next ten, 20 years. There will be innovations
0:14:44 > 0:14:49like robots taking jobs away. People are concerned about that. The key
0:14:49 > 0:14:53messages our jobs will be lost but opportunities will be created and we
0:14:53 > 0:14:58need to prepare people for that opportunity.A lot of opportunity
0:14:58 > 0:15:01and a lot of things for areas like Chester built to have to take into
0:15:01 > 0:15:09account. It is not just warehouses, it is retail assistance and
0:15:09 > 0:15:12insurance brokers as well put up still be opportunity for growth as
0:15:12 > 0:15:18well.
0:15:18 > 0:15:25There's quite a bit on that subject on our website so take a look if you
0:15:25 > 0:15:29are interested. Regulators are to investigate the audit of Carillion,
0:15:29 > 0:15:38carried out by KPMG. They say the move follows inquiries made since a
0:15:38 > 0:15:42profit warning in July, and you will know there's a lot of criticism over
0:15:42 > 0:15:48why Carillion was still awarded contracts even though it had issued
0:15:48 > 0:15:55profit warnings. There's lots of detail on that story and also more
0:15:55 > 0:16:03on the Business Live page about companies impacted by the Carillion
0:16:03 > 0:16:06collapse.
0:16:06 > 0:16:08You're watching Business Live - our top story:
0:16:08 > 0:16:11Another Brexit milestone - the EU decides on what it wants,
0:16:11 > 0:16:20and what its willing to be flexible on, in negotiation with the UK.
0:16:21 > 0:16:26That could have an effect on markets
0:16:26 > 0:16:26in Europe too so let's have
0:16:26 > 0:16:28That could have an effect on markets in Europe too so let's have a look.
0:16:28 > 0:16:40We have seen weakness with the pound as the uncertainty continues.
0:16:40 > 0:16:41We have seen weakness with the pound as the uncertainty continues.
0:16:42 > 0:16:45Now we are going to talk about something that is very controversial
0:16:45 > 0:16:52and most people have strong opinions about this. We are talking about
0:16:52 > 0:16:56burgeoning of a very lucrative industry of marijuana.
0:16:56 > 0:17:00But first we are going to talk about artificial intelligence and
0:17:00 > 0:17:07augmented reality.
0:17:07 > 0:17:15Technology is proving a game changer for many industries.
0:17:15 > 0:17:24Forget about that, back to marijuana.Have you had some?Yes,
0:17:24 > 0:17:33in the Green room! No, I haven't.
0:17:33 > 0:17:35There has been a growing awareness that
0:17:35 > 0:17:37schools need to revamp, to give today's students the digital
0:17:37 > 0:17:39skills they'll need in the future.
0:17:39 > 0:17:46And, there's big money in it too.
0:17:46 > 0:17:49This education dollar has brought almost a thousand Edtech
0:17:49 > 0:17:53companies here to London.
0:17:53 > 0:18:01Our reporter Katie Silver went along to take a look.
0:18:01 > 0:18:07Going inside Volcano, a trip to New York or to space, Virtual reality,
0:18:07 > 0:18:12they tell me, is the future to education.You can put the camera in
0:18:12 > 0:18:20and create your own 360 content.The company Weblogs has partnered up
0:18:20 > 0:18:27with Google to sell virtual reality sets to schools. The tech giant has
0:18:27 > 0:18:32made no-frills version of its own. This is literally a piece of
0:18:32 > 0:18:39cardboard with telescopic lenses and inside is a smartphone.The
0:18:39 > 0:18:44cardboard versions cost $15 each but it's unclear how parents will feel
0:18:44 > 0:18:55about Google being so embedded in classrooms. Robotics company I spoke
0:18:55 > 0:19:05to also wants to educate tomorrow's pupils.They are getting an
0:19:05 > 0:19:07introduction to computer science, mechanical engineering, electrical
0:19:07 > 0:19:15systems. These are really in demand careers at the moment.Companies are
0:19:15 > 0:19:20also using drones to inspire children to cope. Using software,
0:19:20 > 0:19:25children programme machines and learn mathematical concepts at the
0:19:25 > 0:19:35same time. It is expected to reach $150 billion by 2020 and brought
0:19:35 > 0:19:38exhibitors like these from around the world, hoping to break
0:19:38 > 0:19:43themselves off a bit of that pie. When you build something that adds
0:19:43 > 0:19:50value instantly and is so simple, there's many companies working into
0:19:50 > 0:19:54this space but it takes a certain mix of technologies to understand
0:19:54 > 0:20:01the classroom and teacher. Whoever gets that right sees the volume
0:20:01 > 0:20:06increasing significantly.There are even companies allowing children to
0:20:06 > 0:20:19print greedy pens perfectly tailored to their grip. -- 3D pens.
0:20:19 > 0:20:22Fascinating, now onto the controversial debate I tried to
0:20:22 > 0:20:28introduce to you three minutes ago. Yes, it was worth waiting for. You
0:20:28 > 0:20:36work just teasing.
0:20:36 > 0:20:37In the US,
0:20:37 > 0:20:39cannabis is legal medically in 29 states and recreationally
0:20:39 > 0:20:40in nine others.
0:20:40 > 0:20:47The latest figures show the market was
0:20:47 > 0:20:53worth $7.1 billion in 2016 and it's growing every year.
0:20:53 > 0:20:55The UN estimates the global industry is worth $142 billion.
0:20:55 > 0:20:58And transforming the sale of cannabis from an illegal to legal
0:20:58 > 0:21:00endeavour means creating a lot of new jobs - some estimate
0:21:00 > 0:21:07over a million - and, of course, revenue from tax.
0:21:07 > 0:21:12To help navigate the business world of cannabis,
0:21:12 > 0:21:22is a company called BudTender.
0:21:24 > 0:21:30It's chief executive Ebony Costain is with us now.
0:21:30 > 0:21:34You help people work out how they can make jobs, pay their taxes and
0:21:34 > 0:21:39do this properly as a business, how does it work?We are an online
0:21:39 > 0:21:43platform working with cannabis brands to deliver information to
0:21:43 > 0:21:51people responsible for selling the products, and they are called
0:21:51 > 0:21:55BudTenders. You have to have a BudTender to facilitate
0:21:55 > 0:22:02transactions. With advertising laws, with cannabis, very restrictive so
0:22:02 > 0:22:05brands are having a hard time and how to get there rounded product
0:22:05 > 0:22:09information in front of the customer.So this helps them
0:22:09 > 0:22:14navigate the market, what they can and cannot do. We were surprised how
0:22:14 > 0:22:23many products there are. This isn't just about the leaf.No, you have
0:22:23 > 0:22:29edibles, topicals, patches, even inhalers, so thousands of products
0:22:29 > 0:22:33and they are all different in different states so being able to
0:22:33 > 0:22:39keep up with that information is a lot for the BudTenders.You are in
0:22:39 > 0:22:43Colorado, which is where it has become legal in the last five years
0:22:43 > 0:22:48and the industry there has boomed, hasn't it? You moved from Virginia
0:22:48 > 0:22:54to Colorado where you could provide this business legally. How do you do
0:22:54 > 0:22:58that, because if you are going to provide information about thousands
0:22:58 > 0:23:02of products which the user needs to know all the different elements and
0:23:02 > 0:23:06whether it affects them chemically well or not, whether it will supply
0:23:06 > 0:23:12the medicinal lead or not, how do you know what's involved in each of
0:23:12 > 0:23:18these products?We work very closely with the brands and help deliver
0:23:18 > 0:23:22their product information, their brand stories so we are not just
0:23:22 > 0:23:27guessing on our own. We are working hand-in-hand with the brands we work
0:23:27 > 0:23:32with.And they pay you money, don't be, so if I'm going on your website
0:23:32 > 0:23:39and I want to find out about the different brands, how do I know your
0:23:39 > 0:23:43information is impartial and not skewed by the fact they pay you to
0:23:43 > 0:23:47tell me about their products?I understand that but it is a
0:23:47 > 0:23:51marketing platform. How you see advertisements in commercials and
0:23:51 > 0:23:56magazines, it is up to the consumer to filter through that.It is pretty
0:23:56 > 0:24:02rare there is an industry that is created overnight, and to be at the
0:24:02 > 0:24:06forefront of it from early stages, are you now looking around the world
0:24:06 > 0:24:13at where else this is applicable? Where governments are thinking
0:24:13 > 0:24:18should we legalise?Yes, the great thing with our platform is it is
0:24:18 > 0:24:24scalable since it is online technology, we can go to Israel or
0:24:24 > 0:24:30Amsterdam.So where are you watching?Clearly the US, California
0:24:30 > 0:24:37will be a huge market. In a couple of years they are expected to see $1
0:24:37 > 0:24:41billion with the tax revenue.But you have to be right across the
0:24:41 > 0:24:47moor, don't you. In the States where you are writing I know there's a
0:24:47 > 0:24:50pile of BudTenders being investigated in Colorado because
0:24:50 > 0:24:54they have been giving customers too much cannabis and there's strict
0:24:54 > 0:24:58regulations about it.There are still a lot of grey areas we are
0:24:58 > 0:25:06trying to figure out in the States but I think in the next five to ten
0:25:06 > 0:25:09years, this industry is wealth generating.Ever need, really good
0:25:09 > 0:25:16to see you. Thank you for explaining that.Thank you for having me.So
0:25:16 > 0:25:23many people have been in touch about this. We will have to retweet them,
0:25:23 > 0:25:28won't we? Matt says think about tax revenue. Paul says plusses and
0:25:28 > 0:25:35minuses but why not tax it and profit from it.
0:25:35 > 0:25:40That's it from Business Live today.
0:25:41 > 0:25:45Have a good day, goodbye.