28/02/2018

Download Subtitles

Transcript

0:00:04 > 0:00:07This is Business Live from BBC News with Ben Thompson

0:00:07 > 0:00:09and Samantha Simmonds.

0:00:09 > 0:00:10Brexit breakdown.

0:00:10 > 0:00:13The EU publishes its first formal look at how things

0:00:13 > 0:00:16will work once the UK leaves.

0:00:16 > 0:00:18Live from London, that's our top story on Wednesday

0:00:18 > 0:00:20the 28th of February.

0:00:36 > 0:00:39Business continues to fret about uncertainty as the document

0:00:39 > 0:00:42says Northern Ireland might have to follow EU rules to avoid

0:00:42 > 0:00:45imposing a hard border.

0:00:45 > 0:00:47We'll look at the implications.

0:00:47 > 0:00:49Also in the programme.

0:00:49 > 0:00:52The biggest recall in car making history gets even bigger.

0:00:52 > 0:00:54Australia orders a compulsory return of more than two

0:00:54 > 0:01:01million Takata airbags.

0:01:01 > 0:01:04And an optimistic outlook from the new boss of

0:01:04 > 0:01:06America's Central Bank with more rate rises on the cards.

0:01:06 > 0:01:08The dollar has jumped, but markets are down.

0:01:08 > 0:01:16Hello and welcome to Business Live.

0:01:16 > 0:01:18We will get the inside track on how

0:01:18 > 0:01:18you

0:01:18 > 0:01:21We will get the inside track on how you stop Winter flu. The boss of one

0:01:21 > 0:01:29of the biggest vaccine companies in Europe will talk to us about how

0:01:29 > 0:01:37healthy. With Toys R Us on the brink of collapse, we want to know, do you

0:01:37 > 0:01:42buy your toys online or in a shop? Let us know.

0:01:42 > 0:01:45Welcome to the programme.

0:01:45 > 0:01:48With just over a year to go until Brexit as we speak,

0:01:48 > 0:01:51the EU is publishing a draft of the Brexit treaty that

0:01:51 > 0:01:56will specify the terms of the UK's departure.

0:01:56 > 0:01:58But for business and investors there's still a huge

0:01:58 > 0:02:00amount of uncertainty.

0:02:00 > 0:02:02One of the key issues it covers is Northern Ireland's land border

0:02:02 > 0:02:05with the Republic of Ireland.

0:02:05 > 0:02:08In 2015 $3.4 billion worth of goods were traded

0:02:08 > 0:02:12across it in both directions.

0:02:12 > 0:02:16On Tuesday, the UK's International Trade Secretary Liam Fox reiterated

0:02:16 > 0:02:19that "The avoidance of a hard border in Northern Ireland

0:02:19 > 0:02:21is of crucial importance".

0:02:21 > 0:02:24That's something the Republic of Ireland agrees with.

0:02:24 > 0:02:27But businesses on both sides want to know what the future rules will be.

0:02:27 > 0:02:31And in the document the EU is expected to confirm its fall back

0:02:31 > 0:02:35position, that EU rules continue to apply on both sides of the Irish

0:02:35 > 0:02:41border after Brexit.

0:02:41 > 0:02:46Our correspondent Adam Fleming is in Brussels.

0:02:46 > 0:02:51Today is a significant day for anyone who watches these

0:02:51 > 0:02:54negotiations, today is a day which could change the future of them.

0:02:54 > 0:03:01Yes, we will get this 120 page document with 168 paragraphs, a few

0:03:01 > 0:03:08protocols and annexes thrown in for good measure so not easy reading.

0:03:08 > 0:03:12Everyone is looking at the language about the Irish border and

0:03:12 > 0:03:17preventing physical infrastructure. In September three options were

0:03:17 > 0:03:24agreed, option that a is an amazing trade agreement which obviates the

0:03:24 > 0:03:28border, option B means that you use technology so you don't have to have

0:03:28 > 0:03:31a hard border, and option C, the most controversial and the UK

0:03:31 > 0:03:35Government's least favourite, is that Northern Ireland sticks to the

0:03:35 > 0:03:40EU's rules on trade, customs and all sorts of things. Option C is the

0:03:40 > 0:03:48option that will be detailed in legal language over a whole lot of

0:03:48 > 0:03:55pages today. However the document will not do options left a and B but

0:03:55 > 0:04:00there has not been an opportunity to negotiate that so it will all be

0:04:00 > 0:04:05down to the British government and their reaction. This is the first

0:04:05 > 0:04:08strath of history, it hasn't even been approved by the 27 member

0:04:08 > 0:04:18states of the EU or negotiated with the UK yet so long way to go until

0:04:18 > 0:04:21its final draft.Good luck, it will be a busy for you.

0:04:21 > 0:04:24With me is Sir Simon Fraser - he is a Managing Partner

0:04:24 > 0:04:26at the business cosultancy, Flint Global.

0:04:26 > 0:04:29He used to be Permanent Secretary at both the UK Foreign Office &

0:04:29 > 0:04:31Department for Business as well as Chief of Staff

0:04:31 > 0:04:32to the EU's Trade Commissioner.

0:04:32 > 0:04:36So a man well placed to give us an insight into what's going on! I'd

0:04:36 > 0:04:39like to get your reaction to the British Foreign Secretary's Boris

0:04:39 > 0:04:48Johnson's comment a few days ago that this border issue is being

0:04:48 > 0:04:51caused to frustrate Brexit, what's your assessment?I don't think that

0:04:51 > 0:04:54was the case, we have boys known this was a key issue and Liam Fox,

0:04:54 > 0:05:04as we have heard, hasn't said avoiding a hard border is essential.

0:05:04 > 0:05:09One of the things is that the government has got to come up with a

0:05:09 > 0:05:12proposal outlining what it wants.We have had significant days in the

0:05:12 > 0:05:21past year of the negotiations but it becomes significant today, the

0:05:21 > 0:05:23lawyers have to get in a room and the first things out and there does

0:05:23 > 0:05:26not seem to be a significant position from the British

0:05:26 > 0:05:30government.Yes, it's important, we are moving from political

0:05:30 > 0:05:35negotiations to a legal negotiation. Once the lawyers in the room, you

0:05:35 > 0:05:41have to have precision and things nailed down in the details. We know

0:05:41 > 0:05:45that there was a lot of ambiguity around Northern Ireland which has to

0:05:45 > 0:05:48be clarified now. That's why today is such an interesting day and wait

0:05:48 > 0:05:59there is -- why there is a debate going on around the sticks.You run

0:05:59 > 0:06:05a consultancy service, what basis is saying about this uncertainty?

0:06:05 > 0:06:11Businesses are saying that it is difficult in Ireland and Northern

0:06:11 > 0:06:14Ireland, but it's wider than that, because Irish businesses often

0:06:14 > 0:06:20operate via the UK into the EU. Business needs certainty and they

0:06:20 > 0:06:23particularly want a transition agreement arranged to cover the

0:06:23 > 0:06:31circumstances around the UK leaving and after March 20 19. It will be

0:06:31 > 0:06:34part of this withdrawal agreement which is now being negotiated so it

0:06:34 > 0:06:39has to come together in a way that gives business clarity.What do they

0:06:39 > 0:06:42say to you about what an ideal scenario would be?What they want

0:06:42 > 0:06:51is...Apart from the certainty.And an ideal scenario would be a

0:06:51 > 0:06:55continuation of the current rules. Business wants clarity and the

0:06:55 > 0:06:59minimum number of changes to make, and a longer-term security, so it

0:06:59 > 0:07:02can make not only operational choices but investment decisions the

0:07:02 > 0:07:07future.We will see if we get any of the clarity in the coming hours and

0:07:07 > 0:07:09days. We will keep you up-to-date.

0:07:09 > 0:07:12Let's take a look at some of the other stories making the news.

0:07:12 > 0:07:14US customs will start charging duties on imports

0:07:14 > 0:07:19of aluminium foil from China.

0:07:19 > 0:07:21The tariffs of as much as 106% have been imposed after US

0:07:21 > 0:07:23manufacturers complained that Chinese made goods were being dumped

0:07:23 > 0:07:26in the US at below cost price.

0:07:26 > 0:07:28They also allege that Chinese producers are receiving unfair

0:07:28 > 0:07:34government subsidies.

0:07:34 > 0:07:37Amazon has agreed to buy the video doorbell maker Ring in a deal

0:07:37 > 0:07:40reported to be worth more than a billion dollars.

0:07:40 > 0:07:44It's set to be one of Amazon's most expensive takeovers

0:07:44 > 0:07:47after its almost $14 billion dollar deal last year for

0:07:47 > 0:07:48Whole Foods Market.

0:07:48 > 0:07:53It could help Amazon improve how it delivers parcels.

0:07:53 > 0:07:57In the UK, Toys R Us and the electronics chain Maplin

0:07:57 > 0:08:00are both on the brink of collapse with more than 5,000

0:08:00 > 0:08:01jobs at risk.

0:08:01 > 0:08:03The struggling retailers are understood to have put

0:08:03 > 0:08:04administrators on stand-by after failing to

0:08:05 > 0:08:06secure a rescue deal.

0:08:06 > 0:08:09The US parent of Toys R Us is also reported to be trying

0:08:09 > 0:08:14to sell its European and Asian arms as it struggles with $5bn of debt.

0:08:16 > 0:08:18The biggest recall in carmaking history has just

0:08:18 > 0:08:19got bigger yet again.

0:08:19 > 0:08:22That's because the Australian government has ordered a compulsory

0:08:22 > 0:08:26recall of 2.3 million Takata airbags.

0:08:26 > 0:08:29More than 100 million have already been recalled around the world

0:08:29 > 0:08:32because of faults which mean they have exploded and killed

0:08:32 > 0:08:36at least 23 people and injured about 200 others.

0:08:36 > 0:08:38It's forced the Japanese firm to bankruptcy.

0:08:38 > 0:08:42Hywel Griffith has the details from Sydney.

0:08:42 > 0:08:45There was already a voluntary recall last year, the government simply not

0:08:45 > 0:08:48satisfied with the response.

0:08:48 > 0:08:50And there are concerns about what happened to some of those

0:08:50 > 0:08:52vehicles that have already been taken off the road

0:08:53 > 0:08:54and put into garages.

0:08:54 > 0:08:56It's understood that while some were taken

0:08:56 > 0:08:59in to have the old airbags taken out, they were simply given

0:08:59 > 0:09:03new similar airbags by the same company with the same fault.

0:09:03 > 0:09:06The fault increases over time, so it was a make

0:09:06 > 0:09:09do and mend approach.

0:09:09 > 0:09:12The government isn't happy with that and therefore those cars already

0:09:12 > 0:09:15being taking in and new cars and models will also have to go

0:09:15 > 0:09:20in as part of this compulsory recall before the end of 2020.

0:09:20 > 0:09:22And now because this recall is compulsory,

0:09:22 > 0:09:25it's up to the manufacturers to bear the cost of bringing the vehicles

0:09:25 > 0:09:28back in and replacing the airbag with a completely different one.

0:09:28 > 0:09:32Of course, Takata is having huge global of problems with this,

0:09:32 > 0:09:35100 million vehicles worldwide affected overall.

0:09:35 > 0:09:38The company has already filed for bankruptcy but this now

0:09:38 > 0:09:41will mean the cost in part goes on to the big brand car

0:09:41 > 0:09:47manufacturers, many of them Asian companies but also the likes

0:09:47 > 0:09:54of Volkswagen, Ford and Holden here in Australia.

0:09:54 > 0:09:57So we heard from new Fed Chair Jerome Powell yesterday

0:09:57 > 0:10:02and he was pretty optimistic about the state of the US economy.

0:10:02 > 0:10:07That being seen as a sign that the Fed could raise rates more

0:10:07 > 0:10:13than three times this year which pushed up treasury yields

0:10:13 > 0:10:16and the dollar rallied against all major currencies.

0:10:16 > 0:10:21It appears he's firmly of the thinking that rates need

0:10:21 > 0:10:31to gradually increase to prevent the US economy from overheating.

0:10:31 > 0:10:37There is a concern that if they raise rates to quickly, it could not

0:10:37 > 0:10:43enough, but more than that and could overheat.

0:10:43 > 0:10:48We will assess all of the indications of that and that new Fed

0:10:48 > 0:10:54chair and what that could mean for the economy. But first the details

0:10:54 > 0:10:56from Wall Street.

0:10:56 > 0:10:58New Fed chair Jerome Powell's comments to Congress on

0:10:58 > 0:11:00Tuesday seemed to drive stocks lower.

0:11:00 > 0:11:02Investors now have to wait a day for his next appearance in

0:11:02 > 0:11:04Congress which will be on Thursday.

0:11:04 > 0:11:06In the meantime, they'll have plenty of other news to contemplate.

0:11:06 > 0:11:12The latest read on GDP, for starters.

0:11:12 > 0:11:15The second estimate for how well the US economy grew in the last

0:11:15 > 0:11:17quarter of 2017 is expected to show a slightly reduced annualised

0:11:17 > 0:11:20growth rate of 2.5%.

0:11:20 > 0:11:25That's somewhere below the 3% that President Trump says he'll deliver.

0:11:25 > 0:11:28And there's a steady stream of corporate news.

0:11:28 > 0:11:32Software giant Salesforce is likely to tout rising quarterly revenues

0:11:32 > 0:11:41thanks to strong demand for its cloud competing services.

0:11:41 > 0:11:42The storage provider Box Two is also forecast

0:11:42 > 0:11:44to produce stronger earnings.

0:11:44 > 0:11:51Joining us is Sue Noffke, UK Equities Fund Manager at Schroders.

0:11:51 > 0:11:56Good morning, thank you for braving the snowy conditions out there. Fera

0:11:56 > 0:11:58whether in the United States, we have been talking about this speech

0:11:58 > 0:12:03from Jerome Powell, first as chair of the Fed, what did you make of it?

0:12:03 > 0:12:09Markets have interpreted it as hawkish. He is more plain speaking

0:12:09 > 0:12:16than his predecessor, Janet Kelland, so he had laid things out. The

0:12:16 > 0:12:21economy is doing pretty well, pretty strongly. Plus the fact that he was

0:12:21 > 0:12:26highlighting that for the future couple of years, he can see the

0:12:26 > 0:12:31economic growth remaining quite strong because of the tax cuts that

0:12:31 > 0:12:39have been announced. That's going to sustain growth. Inflation has been

0:12:39 > 0:12:47muted and has not reached the 2% fat target, so without interest rate

0:12:47 > 0:12:55rises, we're going to overshoot. We're in a diverse situation where

0:12:55 > 0:13:00it's good news that leads to falls in an equity moment.As a change to

0:13:00 > 0:13:03bad news leading to rises in the equity market.That seems weird to

0:13:03 > 0:13:09many people.Yes, it's all about what is priced in and where the

0:13:09 > 0:13:16tipping points are. We have this Goldilocks scenario, neither not hot

0:13:16 > 0:13:22enough or not too hot economic news, just right. Very loose monetary

0:13:22 > 0:13:28policy, but we're seeing that change, we are seeing tapering in

0:13:28 > 0:13:35quantitative easing which is slowing the amount of government bond buying

0:13:35 > 0:13:37this year and contracting mixture. At the same time, interest rates

0:13:37 > 0:13:43rising and the pace of those ahead of what people thought.So markets

0:13:43 > 0:13:48are expecting three rate rises?Up to four. But that's only one

0:13:48 > 0:13:53percentage point on interest rates so it's not scaring the horses, but

0:13:53 > 0:13:58bond yields are approaching 3% for 10-year Treasuries. That repricing

0:13:58 > 0:14:03of money is beginning to cause people to think about what products

0:14:03 > 0:14:08they will undertake.Thank you very much.

0:14:08 > 0:14:12It's that psychological shift that we're so used to with money being so

0:14:12 > 0:14:18cheap for so long with interest rates being so and over so long, a

0:14:18 > 0:14:20change could be seen as a big move.

0:14:20 > 0:14:21Still to come...

0:14:21 > 0:14:24Keeping on top of the flu, as cold weather grips Europe one

0:14:24 > 0:14:27of the continents largest vaccine company's tell us how it's

0:14:27 > 0:14:28technology is keeping us healthy.

0:14:28 > 0:14:31You're with Business Live from BBC News.

0:14:42 > 0:14:51In the UK, we have had results from the commercial broadcaster ITV.

0:14:51 > 0:14:52They reported a 5% fall

0:14:52 > 0:14:54in full-year profits, after a tough year for advertising

0:14:54 > 0:14:56However it saw growth in its studios business,

0:14:56 > 0:14:59which makes TV shows for the network and other broadcasters.

0:14:59 > 0:15:01New CEO Carolyn McCall is aiming for a strategic

0:15:01 > 0:15:02refresh of the business.

0:15:02 > 0:15:04Tom Harrington is from Enders Analysis is here to tell us

0:15:04 > 0:15:08what that might mean.

0:15:08 > 0:15:14She called it a strategic refresh but that is tough for advertising

0:15:14 > 0:15:17right now in the market?They announced net advertising revenue

0:15:17 > 0:15:24was down 5%, in line with guidance, and what has been happening in the

0:15:24 > 0:15:26market, the market trend, unsurprising in that regard. The

0:15:26 > 0:15:32last five years has seen ITV moving away height quickly from a model

0:15:32 > 0:15:34that is based entirely upon advertising revenue and towards one

0:15:34 > 0:15:42which gets increasingly upwards of 50% now in their production

0:15:42 > 0:15:45capabilities. They are protecting themselves from the ups and downs of

0:15:45 > 0:15:49the advertising market.Carolyn McCall came in from Ryanair, a lot

0:15:49 > 0:15:56of hope split on her shoulders. Can she turn things around?I think she

0:15:56 > 0:15:59has to worry about the ingress of tech giants into the TV advertising

0:15:59 > 0:16:04space. She has been championing television as a safe and mass

0:16:04 > 0:16:14reaching medium. You can see brands adverts online easily, not next to

0:16:14 > 0:16:21jihadi videos or anything like that. The ITV Hub has been doing a lot

0:16:21 > 0:16:25better. They also have the breadbox, nobody knows what is happening with

0:16:25 > 0:16:32that.And all of the stuff that they will show, the World Cup games, that

0:16:32 > 0:16:39is a big one. And the perennial favourite Love Ireland!They have

0:16:39 > 0:16:50done well in 2016 and 2017 -- Love Island. Up 15% in terms of share,

0:16:50 > 0:16:55they do have the World Cup, something to look forward to. And

0:16:55 > 0:16:58this is the year that they cash in on Love Island. They did

0:16:58 > 0:17:01phenomenally online last year. So they can charge outrageous amounts

0:17:01 > 0:17:05of sponsorship and stuff like that. Thank you.

0:17:05 > 0:17:14Carolyn McCall came in from easyJet, not Ryanair.

0:17:19 > 0:17:22You're watching Business Live.

0:17:22 > 0:17:27The top story today, the first draft of the EU's legally binding Brexit

0:17:27 > 0:17:32treaty is being published as we speak. There is a lot of it, about

0:17:32 > 0:17:36150 pages. It will say that unless there is another deal, Northern

0:17:36 > 0:17:40Ireland will have two follow single market rules to avoid having a hard

0:17:40 > 0:17:45border with the Irish Republic. It is a big sticking point as far as

0:17:45 > 0:17:49Brexit negotiations are concerned. And a quick

0:17:49 > 0:17:49Brexit negotiations are concerned. And a quick look at the European

0:17:49 > 0:17:55markets, all opening slightly down following negative trading on the

0:17:55 > 0:17:57Asian markets overnight. And also on the

0:17:57 > 0:18:00Asian markets overnight. And also on the US markets.

0:18:00 > 0:18:04Have you fallen foul of the dreaded flu this winter?

0:18:04 > 0:18:06Doctors and companies, suffering staff sickness,

0:18:06 > 0:18:08will agree it's been the worst flu season in years.

0:18:08 > 0:18:10So what about prevention?

0:18:10 > 0:18:20Our next guest runs one of the world's largest flu vaccine

0:18:25 > 0:18:27companies; Seqirus specialises in the influenza vaccine

0:18:27 > 0:18:29for the elderly, and is licensed in Europe and North America.

0:18:29 > 0:18:32The US Centers for Disease Control and Prevention said this season's

0:18:32 > 0:18:34vaccine is just 36% effective, only 25% against the nastiest,

0:18:34 > 0:18:36dominant strain H3N2.

0:18:36 > 0:18:38The firm says its novel method, producing vaccines in cells

0:18:38 > 0:18:39at commercial scale, is an industry first

0:18:39 > 0:18:41and overcomes the problem of vaccines being outsmarted

0:18:41 > 0:18:43by a mutating virus.

0:18:43 > 0:18:46We will ask him to explain this in a minute!

0:18:46 > 0:18:48But tackling constantly mutating flu strains needs

0:18:48 > 0:18:51cutting-edge innovation.

0:18:51 > 0:18:54So it's focusing on its Liverpool plant - one of the biggest

0:18:54 > 0:19:00biotech sites in Europe - with a £60 million investment.

0:19:00 > 0:19:04Gordon Naylor, President of Seqirus joins us.

0:19:04 > 0:19:10A warm welcome to you. Let's talk about how you, first of all, manage

0:19:10 > 0:19:15the mutation of the flu virus and try and precipitate that, when you

0:19:15 > 0:19:24are creating a flu vaccine itself. The influence virus is a wily foe

0:19:24 > 0:19:29and it constantly changes and constantly mutates. There are

0:19:29 > 0:19:32multiple strains. There has been a whole global collaboration which has

0:19:32 > 0:19:37been working since the 1940s to find out how to respond. That rapid

0:19:37 > 0:19:44mutation is the reason why we have to have a new vaccine every year. So

0:19:44 > 0:19:50Fourie manufacturer like ourselves, who are global, we go through two

0:19:50 > 0:19:52product and development cycles, one for the Southern Hemisphere and one

0:19:52 > 0:19:58for the Northern hemisphere every year.We were just talking and I'm

0:19:58 > 0:20:04staggered at how much planning you have to do. Once you have decided,

0:20:04 > 0:20:07or the organisation, has decided which strains of the virus you will

0:20:07 > 0:20:11tackle, you have a lot of work to do before it hits the market.It is

0:20:11 > 0:20:15quite a challenge. As you know, there was snow on the ground here in

0:20:15 > 0:20:19London, we are in the middle of a serious winter. We have been

0:20:19 > 0:20:25manufacturing for several weeks now. This will take us into the next

0:20:25 > 0:20:29Northern Hemisphere winter.12 months from now?Yes, the World

0:20:29 > 0:20:34Health Organisation directs free agencies on which virus strains are

0:20:34 > 0:20:38to be manufactured, and they made the decision on Friday.This year

0:20:38 > 0:20:42has been really bad around the world for those suffering from flu and the

0:20:42 > 0:20:50number of deaths. Why is that? Is it because the vaccines are wrong, or

0:20:50 > 0:20:58because it is a wily foe, as you said?Influencer is a pretty --

0:20:58 > 0:21:02influenza is a pretty serious disease. Around 650,000 people per

0:21:02 > 0:21:09year die globally from influenza out of a backdrop of 5 million cases,

0:21:09 > 0:21:14many. This year has been particularly serious, we have had

0:21:14 > 0:21:18elevated levels of serious illness and mortality around the world.

0:21:18 > 0:21:27These virus strains are particularly difficult, especially for the more

0:21:27 > 0:21:31vulnerable elderly. The challenges because of this long lock in effect,

0:21:31 > 0:21:36and we had to make the decision early, this virus continues to

0:21:36 > 0:21:41mutate and it can make it difficult to catch up. The other challenge is

0:21:41 > 0:21:46we know that for most manufacturing, which is done in eggs, that

0:21:46 > 0:21:52sometimes there is an effect where the virus changes a little bit as

0:21:52 > 0:21:55part of that manufacturing process which can make it more challenging.

0:21:55 > 0:21:59That is what we are seeing, we think, in much of the markets this

0:21:59 > 0:22:05year.As Sam says, it has been one of the worst flu seasons in decades.

0:22:05 > 0:22:10I hesitate to use the phrase "Good news" for you but as a business

0:22:10 > 0:22:13selling a vaccine to tackle flu, how does work financially when there is

0:22:13 > 0:22:22such a bad flu season, do your sales go up?We would to think so but in

0:22:22 > 0:22:24many of our markets the reality is we made those manufacturing

0:22:24 > 0:22:28decisions many months before we knew the severity of the season.So that

0:22:28 > 0:22:32means you cannot particularly plan, if there is a big upswing, you

0:22:32 > 0:22:36cannot get the vaccine out quickly enough to cope?It is difficult for

0:22:36 > 0:22:40a manufacturer to respond rapidly. You tend to make a little more than

0:22:40 > 0:22:43what you expect will be needed but that's about the only measure you

0:22:43 > 0:22:47can take.It is good to see you this morning. Good luck for next year!

0:22:47 > 0:22:53Thank you.

0:22:53 > 0:22:57A pair of smart shoes has been created to help industrial workers

0:22:57 > 0:23:06keep in touch via toe typed coded messages.

0:23:06 > 0:23:11Rory Cellan Jones met the inventor and Mobile World Congress in

0:23:11 > 0:23:29Barcelona. MORSE CODE.

0:23:33 > 0:23:36In the year if the Internet, it seems everything is connected,

0:23:36 > 0:23:37including safety shoes.

0:23:37 > 0:23:39This one has got a SIM card in it.

0:23:39 > 0:23:41This is inside, what is it doing?

0:23:41 > 0:23:42So, this product has a smart SIM card

0:23:42 > 0:23:45embedded in it and a wireless module to send

0:23:45 > 0:23:46a message from a worker, a

0:23:46 > 0:23:49safety message, from his team, to send an alert or to get the other

0:23:49 > 0:23:51way around, a message from his manager.

0:23:51 > 0:23:55Telling him to stay safe, in case of a hurricane or a big

0:23:55 > 0:23:57danger.

0:23:57 > 0:24:00So just moving up the toe or pushing a button on his shoe,

0:24:00 > 0:24:05it will send a message directly to his team or the other way around.

0:24:05 > 0:24:09So the manager can send a message and

0:24:09 > 0:24:12the shoe will vibrate, telling them that there is a message.

0:24:12 > 0:24:14It will do a lot of noise.

0:24:14 > 0:24:2480 decibels of sound, to warn him of an alert.

0:24:24 > 0:24:31I hope they make them in red...A great story, the latest technology

0:24:31 > 0:24:34from Rory Cellan-Jones there. An update on our top story. We've just

0:24:34 > 0:24:39heard from the Irish Prime Minister saying it is up to Britain to bring

0:24:39 > 0:24:43proposals to the table as far as the border is concerned. There is a lot

0:24:43 > 0:24:47of concern as to whether there will be a hard border between Northern

0:24:47 > 0:24:50Ireland and the republic. He said it is up to Britain to bring such

0:24:50 > 0:24:58proposals to the table. Full coverage of that at the top of the

0:24:58 > 0:25:02hour. Sue has rejoined us to talk about some of the stories in the

0:25:02 > 0:25:08paper.We have been talking about electric cars, and the market for

0:25:08 > 0:25:12them. Sometimes you can't plug them

0:25:13 > 0:25:18The Guardian newspaper says that isn't the case at all.

0:25:18 > 0:25:23They are quite expensive as well. I have an electric car. The range is

0:25:23 > 0:25:27not as good as I would like to be. There is a lot of development going

0:25:27 > 0:25:30on, we are going to see some more models coming onto the market give

0:25:30 > 0:25:35consumers more choice at different price points as well.And a quick

0:25:35 > 0:25:40word on our other story as well, the future of Toys "R" Us in the UK. The

0:25:40 > 0:25:44American firm said it is trying to sell a number of units, could it

0:25:44 > 0:25:49disappear from the UK?It could, it hasn't kept up with The Times or

0:25:49 > 0:25:54student demands for service and flexibility. I think the future is

0:25:54 > 0:25:58pretty bleak.A quick too sweet, someone says they go online for

0:25:58 > 0:26:02convenience, it isn't always the cheapest option -- a quick tweet.