:00:00. > :00:08.Tonight at Ten, the Prime Minister spells out her strategic goals
:00:09. > :00:11.for taking Britain out of the European Union.
:00:12. > :00:14.In a long-awaited speech, Mrs May says Britain will leave
:00:15. > :00:23.the single market, seek new trade agreements and control immigration.
:00:24. > :00:25.While I am sure a positive agreement can be reached,
:00:26. > :00:28.I am equally clear that no deal for Britain is better
:00:29. > :00:36.Parliament will get a vote on the final Brexit deal.
:00:37. > :00:39.Labour says Mrs May's approach involves enormous dangers.
:00:40. > :00:43.If all her optimism of a deal with the European Union didn't work,
:00:44. > :00:45.we would move into a low tax corporate taxation,
:00:46. > :00:51.And an equally unenthusiastic response at the European Parliament
:00:52. > :00:59.It creates an illusion, the illusion that you can go out
:01:00. > :01:05.of the single market, that you can go out of the customs
:01:06. > :01:07.union and that you can cherry-pick, that you can
:01:08. > :01:11.In Scotland, where voters backed Remain, the First Minister said
:01:12. > :01:16.a second independence referendum was still on the cards.
:01:17. > :01:19.I am not prepared for Scotland to be taken down a path that I firmly
:01:20. > :01:29.We will have detail and reaction and be asking business
:01:30. > :01:34.The rising price of fuel and food is a factor in driving inflation
:01:35. > :01:35.to the highest level in two-and-a-half years.
:01:36. > :01:39.And, Sir Simon Rattle talks to us about his plans
:01:40. > :02:20.The Prime Minister has set out her vision for Britain's place
:02:21. > :02:24.in the world after it leaves the European Union.
:02:25. > :02:27.The vision rested on 12 objectives and Theresa May declared that no
:02:28. > :02:30.deal would be better than a bad deal.
:02:31. > :02:33.The main announcement today was that the UK would be leaving
:02:34. > :02:35.the European single market with the aim of negotiating a free
:02:36. > :02:41.The Prime Minister said this would deliver control over
:02:42. > :02:49.And she said the final Brexit deal would be subject to a vote by both
:02:50. > :02:53.Tonight we'll have the detail and the reaction and we start
:02:54. > :02:56.with our political editor Laura Kuenssberg.
:02:57. > :02:58.Good morning. What's the plan?
:02:59. > :03:07.On our way out, not just out of the European Union...
:03:08. > :03:16.Theresa May gathered ministers and ambassadors too.
:03:17. > :03:17.To confirm finally, we will leave behind
:03:18. > :03:20.the way the country has made its living for decades.
:03:21. > :03:30.As a priority, we will pursue a bold and ambitious free trade agreement
:03:31. > :03:36.This agreement should allow for the freest possible trade
:03:37. > :03:38.in goods and services between Britain and
:03:39. > :03:43.It should give British companies the maximum freedom to trade
:03:44. > :03:47.with and operate within European markets, and let European businesses
:03:48. > :03:57.But I want to be clear - what I am proposing cannot mean
:03:58. > :04:03.Privately, ministers had talked of preserving some parts
:04:04. > :04:06.of the special club, the market of hundreds of millions
:04:07. > :04:10.where our businesses can buy and sell without barriers.
:04:11. > :04:13.Remainers had pushed her, but she believes it can't be done,
:04:14. > :04:16.because the rules of the single market come with unlimited
:04:17. > :04:21.The message from the public, before and during the referendum
:04:22. > :04:25.campaign, was clear - Brexit must mean control
:04:26. > :04:28.of the number of people who come to Britain from Europe,
:04:29. > :04:35.Our customs arrangements, how we trade over borders,
:04:36. > :04:39.will change too, but no final decision on how.
:04:40. > :04:42.Her clear hope, though, is that the UK will not pay billions
:04:43. > :04:47.There may be some specific programmes in which we might
:04:48. > :04:52.If so, and this will be for us to decide, it is reasonable
:04:53. > :04:56.we should make an appropriate contribution, but the principle
:04:57. > :05:00.is clear: The days of Britain making vast contributions to the EU every
:05:01. > :05:07.27 other countries will decide if her plans are an ambitious
:05:08. > :05:15.Yet most dramatically, if after two years of talks negotiations stall,
:05:16. > :05:18.she and her team are willing to walk away.
:05:19. > :05:22.Britain wants to remain a good friend and neighbour to Europe,
:05:23. > :05:25.yet I know there are some voices calling for a punitive deal that
:05:26. > :05:29.punishes Britain and discourages other countries from taking
:05:30. > :05:34.Britain would not, indeed, we could not,
:05:35. > :05:41.While I am confident that this scenario need never arise,
:05:42. > :05:45.while I am sure a positive agreement can be reached, I am equally clear
:05:46. > :05:49.that no deal for Britain is better than a bad deal for Britain.
:05:50. > :05:54.But remember, the Prime Minister never wanted to leave.
:05:55. > :05:58.During the referendum campaign, you said plainly that you believed
:05:59. > :06:02.if we left the EU and the single market, the country,
:06:03. > :06:05.its families and citizens, would be worse off.
:06:06. > :06:10.Now, either you have changed your mind, or,
:06:11. > :06:14.as Prime Minister, you have made a decision that you believe
:06:15. > :06:17.will leave the country and its citizens poorer -
:06:18. > :06:22.All the economic indicators have been more positive
:06:23. > :06:28.It is only earlier this week that the IMF confirmed
:06:29. > :06:32.we were the fastest growing economy last year.
:06:33. > :06:36.And what I am talking about today is the country coming together
:06:37. > :06:40.and looking for that brighter future as a global Britain.
:06:41. > :06:43.Did the Brexit backers in the Cabinet get the upper hand?
:06:44. > :06:45.It was an excellent speech, it was optimistic, confident,
:06:46. > :06:51.and it set out our responsibilities in a global context.
:06:52. > :07:05.This wasn't an inward looking, purely European speech.
:07:06. > :07:08.It is negotiable, this is something that I think will be good for the UK
:07:09. > :07:13.Why should they allow us to have our cake and eat it?
:07:14. > :07:16.As the Prime Minister said, it will be good for both sides.
:07:17. > :07:18.Do you think what she set out is achievable?
:07:19. > :07:22.Not exactly nodding along, either, the other parties across the UK.
:07:23. > :07:27.The political consequences of Theresa May's choices are unclear.
:07:28. > :07:31.I think we have to have a deal that ensures we have
:07:32. > :07:33.access to the market, that we have British jobs
:07:34. > :07:37.dependent on that market, that is what we will be pushing for.
:07:38. > :07:41.Whether it is specifically this form of single market, I don't know.
:07:42. > :07:45.She seems to want to have her cake and eat it.
:07:46. > :07:48.To wave the white flag across the Cliffs of Dover,
:07:49. > :07:50.as Theresa May has done, and give up on what's best
:07:51. > :07:53.for Britian is an insult and damaging to Britain's future
:07:54. > :07:57.And don't doubt, a UK outside the single market brings
:07:58. > :07:59.the chance for Scottish voters to choose independence closer.
:08:00. > :08:04.I will not allow Scotland's interests to be steam rollered
:08:05. > :08:10.Do we want to be taken down a path that we didn't vote
:08:11. > :08:14.for and is against all of our interests or do we want to take
:08:15. > :08:19.And that is a choice that I think Scotland has the right to make.
:08:20. > :08:24.Parliament was told today they will get a vote on the final
:08:25. > :08:27.deal but it is plain the Prime Minister believes
:08:28. > :08:30.the country has delivered a clear verdict and she has made her mind
:08:31. > :08:37.Her dilemmas now are persuading a continent what she wants
:08:38. > :08:40.is possible and those who voted to stay in the EU that
:08:41. > :08:44.But this is really only the start of a long process.
:08:45. > :08:50.Concern and criticism won't fade away.
:08:51. > :08:54.The scale of what we decided, how it will change our country
:08:55. > :08:57.and all our lives is still fully to emerge.
:08:58. > :09:02.Laura Kuenssberg, BBC News, Westminster.
:09:03. > :09:05.As we've heard, one of the Prime Minister's most
:09:06. > :09:09.significant announcements was the plan to leave the European
:09:10. > :09:13.single market of around 500 million consumers and the plan to leave
:09:14. > :09:15.the EU customs union, the system which allows goods
:09:16. > :09:17.to move between countries without attracting tariffs.
:09:18. > :09:20.Our correspondent James Landale is here with his analysis
:09:21. > :09:25.of what that could mean for trade in future.
:09:26. > :09:29.The single market is the beating heart of the European Union,
:09:30. > :09:31.the trading arrangement that binds the economic club together.
:09:32. > :09:36.Every EU country is a full member of the club.
:09:37. > :09:39.Norway, Iceland, Liechtenstein and Switzerland are partial members.
:09:40. > :09:42.And they all believe that if they get rid of barriers
:09:43. > :09:46.to trade and allow goods, services, money and workers to move
:09:47. > :09:49.freely across their borders, then their economies will grow.
:09:50. > :09:51.To make this happen, they agree common trading rules,
:09:52. > :09:54.so a widget made in Greece is the same as a widget
:09:55. > :09:59.And they set up a European Court of Justice to make sure
:10:00. > :10:07.Supporters say the single market helps British companies flourish,
:10:08. > :10:09.like this engineering firm in Bristol by making it
:10:10. > :10:13.easier for them to export their goods and employ people
:10:14. > :10:19.I think there's an obvious risk for us outside of the single market,
:10:20. > :10:26.I think any change in the customs regime is probably going
:10:27. > :10:33.But opponents say the single market imposes unnecessary red
:10:34. > :10:35.tape on British firms, like this nappy manufacturer
:10:36. > :10:41.It gives too much power to EU judges and allows in
:10:42. > :10:45.The owner of this firm says the opportunities
:10:46. > :10:50.I think, primarily, we can't remain part of the single market
:10:51. > :10:54.because we want to go out and do our trade deals
:10:55. > :10:57.with countries outside the EU and that's very exciting
:10:58. > :11:03.So to help make that happen, Theresa May wants Britain to have
:11:04. > :11:09.instead the greatest possible access to the single market,
:11:10. > :11:12.particularly for British cars, lorries and financial services
:11:13. > :11:15.and to get that, by negotiating a new free trade deal with the EU.
:11:16. > :11:27.And what about the so-called customs union that Mrs May referred to?
:11:28. > :11:30.This is the arrangement under which European governments impose no
:11:31. > :11:33.tariffs or import taxes on goods traded within the EU but they do
:11:34. > :11:37.agree to charge the same tariffs on goods being imported into any
:11:38. > :11:41.Now the Prime Minister said she didn't want Britain to be
:11:42. > :11:48.She wants Britain instead to be able to set its own tariffs
:11:49. > :11:51.and negotiate its own trade deals with the rest of the world.
:11:52. > :11:54.She said she would accept some kind of customs arrangement with the EU
:11:55. > :12:01.And if there is no deal, British firms could end up paying
:12:02. > :12:04.So this is what the Prime Minister wants.
:12:05. > :12:08.All she has to do now is get the rest of the EU to agree
:12:09. > :12:12.I have just skated over the surface of what are some
:12:13. > :12:16.You can read a lot more in detail on the BBC news website and the BBC
:12:17. > :12:23.reality check's assessment of how any deal might work.
:12:24. > :12:28.Business leaders are still divided on the implications of Brexit
:12:29. > :12:31.but most of them today seemed to welcome some new clarity
:12:32. > :12:34.from the Prime Minister on the Government's goals.
:12:35. > :12:37.Theresa May promised that changes to immigration,
:12:38. > :12:40.customs and regulation would be phased in, to avoid disruption.
:12:41. > :12:43.Some of Britain's most prominent business leaders
:12:44. > :12:45.are at World Economic Forum in Davos, in Switzerland.
:12:46. > :12:47.Our business correspondent Simon Jack has been
:12:48. > :12:57.There's nothing like a bit of mountain air to give you clarity.
:12:58. > :12:59.Business leaders gathered here in Switzerland were watching
:13:00. > :13:00.the Prime Minister today for exactly that.
:13:01. > :13:05.I think what we learn from the Prime Minister's speech
:13:06. > :13:08.today was clarity first of all, really codified what many of us
:13:09. > :13:10.had been anticipating since the referendum result,
:13:11. > :13:14.particularly around the single market.
:13:15. > :13:16.I think what we've also seen today is the government's willingness
:13:17. > :13:18.to put a bit of edge into the negotiating
:13:19. > :13:21.dynamic, and I think that makes a lot of sense.
:13:22. > :13:24.Trade negotiations are negotiations, and you have to lay out and you have
:13:25. > :13:26.to be pretty tough to get what you want.
:13:27. > :13:29.For some the uncertainty is still too great.
:13:30. > :13:32.Lloyd's of London, the insurance market, has a ready decided to move
:13:33. > :13:40.We've still got to pursue a subsidiary in the EU
:13:41. > :13:42.for post-Brexit world, meaning that we can still serve our
:13:43. > :13:45.customers and policyholders in those European Union countries.
:13:46. > :13:48.So, no ifs, no buts, no single market.
:13:49. > :13:57.And with the continuing question mark over whether we are a partial
:13:58. > :14:00.member of the customs union, many will say it takes
:14:01. > :14:03.a continent to build a car and if there are hold-ups
:14:04. > :14:05.at the border that could be bad news.
:14:06. > :14:07.And the car industry gave MPs its version of clarity
:14:08. > :14:12.on the consequences of not getting a good trade deal.
:14:13. > :14:16.The cars that we import, and remember we import about 80%
:14:17. > :14:22.of the vehicles we sell in the UK, that would add about ?2.7 billion,
:14:23. > :14:28.Financial markets were watching closely, too.
:14:29. > :14:32.Suddenly the pound rocketed against the dollar at the very
:14:33. > :14:34.moment the Prime Minister offered MPs a chance to vote
:14:35. > :14:43.Markets making one last bet that Brexit could still be derailed.
:14:44. > :14:45.Even some of the business world staunchest Remainers weren't fooled
:14:46. > :14:48.and are now resigned to knuckling down to the political reality.
:14:49. > :14:51.Most businesses are trying to move forward positively,
:14:52. > :14:54.and accepting the result of the referendum.
:14:55. > :14:57.Trying to make sure the complexity of this is well understood
:14:58. > :15:00.and we take the steps both in government and business to deal
:15:01. > :15:02.with this and minimise the impacts of this very compact process.
:15:03. > :15:07.The government shed some light on its priority, but business knows
:15:08. > :15:09.we are still in the foothills of a massive undertaking.
:15:10. > :15:18.The main Brexit negotiator for the European Parliament,
:15:19. > :15:21.Guy Verhofstadt, has warned that it's an illusion
:15:22. > :15:23.to think Britain will be allowed to keep the advantages of trade
:15:24. > :15:25.with the European Union without accepting the obligations.
:15:26. > :15:27.Our correspondent Damian Grammaticas has been
:15:28. > :15:29.assessing the reaction among members of the European
:15:30. > :15:38.He wasn't commenting, but Jean-Claude Juncker,
:15:39. > :15:47.listening to Theresa May - keen to hear her vision for Brexit.
:15:48. > :15:50.The response from the European Parliament's chief negotiator -
:15:51. > :15:55.It creates also an illusion that you can go out of
:15:56. > :15:58.the single market, that you can go out of the customs
:15:59. > :16:00.union and that you can cherry-pick and have
:16:01. > :16:08.And, yeah, I think that will not happen.
:16:09. > :16:12.The EU today was busy with its own affairs,
:16:13. > :16:15.electing a new President of the European Parliament.
:16:16. > :16:18.Many here are sceptical the UK can get all it wants in a
:16:19. > :16:26.We will all love to have a Europe a la carte!
:16:27. > :16:30.It is a ridiculous idea, but this is serious, we have a lot of
:16:31. > :16:32.countries here, a lot of people and we have
:16:33. > :16:38.and this is not, you know, a Europe a la carte.
:16:39. > :16:43.Outside, an Italian school group on an EU tour.
:16:44. > :16:44.Quitting the single market and shunning its
:16:45. > :16:47.freedom of movement will - some believe - be a painful
:16:48. > :16:52.Something - they say - Theresa May did not address.
:16:53. > :16:56.I expect many businesses from the UK to move to Europe.
:16:57. > :16:59.I expect also some financial companies providing services from
:17:00. > :17:08.So there will be some significant losses.
:17:09. > :17:10.Theresa May hasn't mentioned a word about these
:17:11. > :17:15.potential costs and potential losses.
:17:16. > :17:18.As for the threat Mrs May may walk away, choosing no deal if
:17:19. > :17:20.she isn't satisfied - that hasn't gone down well, even
:17:21. > :17:26.No deal will also be bad for the United Kingdom.
:17:27. > :17:28.So it it isn't as if they hold all the cards.
:17:29. > :17:31.The United Kingdom will look after its own interests.
:17:32. > :17:36.And here today one MEP summed up reactions to me,
:17:37. > :17:40.saying he thought Theresa May was overselling to the British people
:17:41. > :17:42.both what she could achieve in trade deals with other countries
:17:43. > :17:46.and how much access she would get to the single market.
:17:47. > :17:51.Damian Grammaticas, BBC News, Strasbourg.
:17:52. > :17:54.The Prime Minister claimed today that she wanted to act
:17:55. > :17:57.in the interests of all parts of the UK and said the devolved
:17:58. > :17:59.administrations should be fully engaged in the process of Brexit.
:18:00. > :18:02.But how was that viewed in Glasgow, Cardiff and Belfast?
:18:03. > :18:11.Let's start with our Scotland editor Sarah Smith.
:18:12. > :18:16.Well Nicola Sturgeon responded to Theresa May's speech today by saying
:18:17. > :18:24.she thinks it has increased the chances that there may be a second
:18:25. > :18:31.referendum on Scottish independence. He said the UK was heading for a
:18:32. > :18:34.hard Brexit that could be cat catastrophic. Last year Nicola
:18:35. > :18:41.Sturgeon presented the Prime Minister with a paper outlining how
:18:42. > :18:44.she believes Scotland could stay in the single market. But they would
:18:45. > :18:47.need the consent of the UK Government and Nicola Sturgeon said
:18:48. > :18:52.she doesn't believe Theresa May is taking that seriously. So that is
:18:53. > :18:55.why she says although a majority in Scotland according to the opinion
:18:56. > :19:00.polls don't favour independence, nonetheless she thinks the prospect
:19:01. > :19:05.of a second vote is now more likely. Northern Ireland is the part of UK
:19:06. > :19:10.most exposed to fallout from Brexit, because it shares a board we are the
:19:11. > :19:14.Irish republic. Theresa May was quick to point out there would be no
:19:15. > :19:18.return to the borders of past and said the common travel area would be
:19:19. > :19:24.preserved. But questions remain and one key question is this - the UK
:19:25. > :19:28.wants to limit and control immigration from the EU. But how
:19:29. > :19:39.would that be possible if Ireland has an open border? And if the UK
:19:40. > :19:47.steps outside the customs union, won't that lead to a hard board
:19:48. > :19:54.border with customs posts. Wales voted to leave, but some concerns
:19:55. > :19:59.today, particularly in areas like manufacturing and farming, still
:20:00. > :20:06.very strong in Wales and reliant on the EU. The First Minister has a
:20:07. > :20:10.problem, he has called for full access to the single market, today's
:20:11. > :20:16.announcement won't make that any easier. He knows that and that is
:20:17. > :20:25.why he has said he thinks are going in the wrong direction and there is
:20:26. > :20:29.the question of politic leverage, if he complains too much, people in
:20:30. > :20:33.Westminster will say they're delivering what the people in Wales
:20:34. > :20:36.voted for which is Brexit. Thank you.
:20:37. > :20:38.As we've heard, the Prime Minister acknowledged that last year's
:20:39. > :20:40.referendum campaign had been divisive, but insisted that people
:20:41. > :20:44.We sent our correspondent Jeremy Cooke to see how those
:20:45. > :20:57.on different sides of the argument had responded to today's speech.
:20:58. > :21:03.Boston, an ancient English town a changing landscape. On the bus,
:21:04. > :21:09.plenty of support for the Prime Minister's speech. The Brexit vote
:21:10. > :21:14.here was 75%. More than one in ten people here are EU migrants. We want
:21:15. > :21:20.that cutting definitely. What effect has it had on town? This town? It's
:21:21. > :21:25.killed it. Is it worth paying to come out of the single market to
:21:26. > :21:31.control immigration? I think so yes. You have got to control it. At the
:21:32. > :21:36.Boston bodies hub it is 60s dance work out. The project is largely
:21:37. > :21:45.EU-funded, but most here voted Brexit. Many worried about levels of
:21:46. > :21:49.immigration. It has got too much now. We may lose trade from Europe.
:21:50. > :21:54.What do you think about that trade off? The trade off I think will be
:21:55. > :21:57.worth it, because Britain's big enough to take care of itself. I
:21:58. > :22:09.think Britain could cope. Your confident? Yes it is Great Britain
:22:10. > :22:13.and Europe needs us. Outside the agricultural heartland and many
:22:14. > :22:18.crops being prepared today will need migrant workers to pick and to
:22:19. > :22:21.process. Within the industry we need labour and without it we will
:22:22. > :22:28.starve. What would you say to Theresa May in terms of what you
:22:29. > :22:33.need as an industry? I hope she will allow labour to be filled in the
:22:34. > :22:38.farming industry. These works are essential? Yes. They are absolutely
:22:39. > :22:45.essential. An hour's drive and we are on the the banks of the Trent.
:22:46. > :22:52.Here they voted 57% to remain in the EU. At this cafe, a different view
:22:53. > :22:56.of the speech. I voted remain. And I was quite surprised by the outcome
:22:57. > :23:01.of the vote, but Theresa May has outlined what the country voted for,
:23:02. > :23:07.which is Brexit. And I think we need clear leadership to make sure that
:23:08. > :23:14.is what happens. S s. Not everyone is as relaxed. We don't realise how
:23:15. > :23:19.bad it is. Do you think we are clearer about what Brexit means? No.
:23:20. > :23:25.No I don't. Her message was the same - Brexit means Brexit. But we still
:23:26. > :23:28.don't really know... What it means! For the Prime Minister then, Brexit
:23:29. > :23:31.remains the greatest of political challenges. In this still divided
:23:32. > :23:37.nation. Our political editor
:23:38. > :23:46.Laura Kuenssberg is at Westminster. More clarity on the goals, but
:23:47. > :23:50.surely all of these are still just aspirations until the talks take
:23:51. > :23:54.place? Yes, we didn't get chapter and verse on what our new
:23:55. > :23:58.immigration system will look like outside the EU. Theresa May said she
:23:59. > :24:03.still had an open mind over how we deal with customs and trade over the
:24:04. > :24:07.borders. So there is a lot still to be decided and argued over over a
:24:08. > :24:13.process that will take years, not months. But the bold, brush strokes
:24:14. > :24:23.were there, explicitly for the first time. And it is a reminder to those
:24:24. > :24:29.who see Theresa May as being caution and mistake that for being meek. But
:24:30. > :24:34.the real rub is whether or not she is being hopelessly optimistic. Is
:24:35. > :24:40.this all a delusion, or is she being clear ahead of a complicated dip low
:24:41. > :24:47.mattedic dance -- diplomatic dance. But that will be a process of
:24:48. > :24:51.negotiation with 27 other countries. We are outnumbered in the
:24:52. > :24:55.negotiations and there is scepticism around the continent over whether
:24:56. > :25:00.what she has promised is remotely achievable and it is a process of
:25:01. > :25:08.negotiation, slow negotiation, that will come to that judgmentment and
:25:09. > :25:11.David Cameron was forced to go after a European negotiation that went
:25:12. > :25:16.wrong for him. Not long ago he quit just on that spot there. Although so
:25:17. > :25:20.much has happened since then, it is only about six months ago, the
:25:21. > :25:28.memory of that somehow hangs heavy in this street tonight. Thank you.
:25:29. > :25:30.Let's turn some of the day's other news.
:25:31. > :25:32.The annual rate of inflation - measured by the Consumer Prices
:25:33. > :25:35.Index - rose more than expected in December to its highest level
:25:36. > :25:40.driven in part by the fall in the value of sterling
:25:41. > :25:43.after the Brexit vote, as well a rise in air fares
:25:44. > :25:47.Our Economics Correspondent Andrew Verity has been
:25:48. > :25:53.This haulier based near Heathrow Airport is facing sharply
:25:54. > :25:59.Fuel had been falling in price, but on today's inflation
:26:00. > :26:05.The company can absorb that cost but not forever.
:26:06. > :26:08.If the cost of the fuel starts to bite, eventually we will
:26:09. > :26:11.have to put a fuel surcharge in like everybody else in this
:26:12. > :26:13.industry once we go past a certain level, because
:26:14. > :26:16.we cannot afford to keep those costs in house.
:26:17. > :26:21.The effect of the weaker pound is most obvious up the supply
:26:22. > :26:23.chain, where raw materials, most of them imported,
:26:24. > :26:28.So far producers haven't been passing most of that on, with
:26:29. > :26:39.Only now is that starting to feed through to shop prices, up 1.6%.
:26:40. > :26:41.The bigger move from the sterling effect
:26:42. > :26:44.is still to come, because contracts have to be renewed, that is where we
:26:45. > :26:47.think inflation moves up much further from the 1.6% we have seen
:26:48. > :26:54.Today, the weak pound started to hit smart phone
:26:55. > :26:59.users where it really hurts - in the apps.
:27:00. > :27:01.Apple announced it was raising the cost of apps costing 79
:27:02. > :27:07.From Apple's point of view, what money it makes here in pounds
:27:08. > :27:11.has to be translated back into dollars and
:27:12. > :27:15.right now that means it is getting fewer dollars than it did, so it has
:27:16. > :27:18.Food prices are still lower than they
:27:19. > :27:20.were a year ago and competition between retailers is preventing
:27:21. > :27:24.them from raising the prices of most goods.
:27:25. > :27:26.But the upward pressure on costs is likely do build.
:27:27. > :27:28.Expect higher inflation in the months to come.
:27:29. > :27:36.A brief look at some of the day's other other news stories.
:27:37. > :27:38.President Obama has commuted the sentence of Chelsea Manning,
:27:39. > :27:41.who was found guilty of leaking US army documents and is serving
:27:42. > :27:48.The White House says Chelsea Manning - who served as a soldier in Iraq
:27:49. > :27:50.and was formerly known as Bradley Manning -
:27:51. > :27:57.The Supreme Court has cleared the way for a Libyan man
:27:58. > :27:59.to take legal action against the Government,
:28:00. > :28:07.Abdel-Hakim Belhaj says MI6 provided information that enabled the US
:28:08. > :28:12.to abduct him and his wife in Asia and their rendition to Tripoli.
:28:13. > :28:14.Mr Belhaj intends to sue the former Foreign Secretary, Jack Straw,
:28:15. > :28:16.who was responsible for MI6 at the time.
:28:17. > :28:23.Concerns about security at a Tunisian resort where 30
:28:24. > :28:26.Britons were killed by an Islamist gunman were raised months before
:28:27. > :28:32.The inquest has heard that a report in January 2015 for the UK
:28:33. > :28:35.Government suggested there was a low standard of protection at some hotel
:28:36. > :28:43.President Putin has dismissed allegations that Russia had gathered
:28:44. > :28:45.compromising material on US president-elect Donald Trump
:28:46. > :28:51.The Russian President said the leaked information,
:28:52. > :28:59.which appeared last week in the US media, was obviously fake.
:29:00. > :29:01.One of Donald Trump's closest advisers has told the BBC
:29:02. > :29:05.that the United States would win any trade war with China.
:29:06. > :29:08.Anthony Scaramucci has warned that retaliation over tariffs will hurt
:29:09. > :29:13.China's President spoke today about the benefits
:29:14. > :29:14.of globalisation, saying protectionism was 'like
:29:15. > :29:22.The speech was delivered at the World Economic Forum in Davos.
:29:23. > :29:28.our economics editor Kamal Ahmed is there.
:29:29. > :29:35.With those remarks, do you think the prospect comes closer of some kind
:29:36. > :29:41.of trade war between China and the United States? Well, the president
:29:42. > :29:45.of China made it clear he didn't want a trade war and didn't believe
:29:46. > :29:51.anyone would win if there was a trade war between China and America.
:29:52. > :29:56.It is minus 17 degrees here in Davos tonight and it looks like the
:29:57. > :30:02.US/Chinese relationship is about as chilly as that. We had a remarkable
:30:03. > :30:07.through the looking glass moment today, the leader of the largest
:30:08. > :30:21.communist party in the world coming to the home of capitalism, the World
:30:22. > :30:26.Economic Forum, extolling the virtues of free trade as Donald
:30:27. > :30:35.Trump said he wants to rip up free trade. The China president is
:30:36. > :30:40.playing a clever game, as America turns inward he think hs deextend
:30:41. > :30:44.the influence of China -- he can extend the influence of China. He
:30:45. > :30:48.said he didn't want a trade war, but his tough words today felt like he
:30:49. > :30:52.might be preparing for one. Thank you.
:30:53. > :30:54.Sir Simon Rattle - the new music director
:30:55. > :30:57.of the London Symphony Orchestra - says he'll start his first
:30:58. > :31:00.season in September with a 10-day celebration,
:31:01. > :31:01.including an all-British line-up of composers
:31:02. > :31:06.Sir Simon - who is currently the artistic director
:31:07. > :31:08.of the Berlin Philharmonic - has been speaking to our Arts
:31:09. > :31:22.The London Symphony Orchestra in rehearsal of of a new work by the
:31:23. > :31:23.British composer, Mark Anthony Turnage,
:31:24. > :31:25.with Simon Rattle - soon to be
:31:26. > :31:28.their new boss - taking them through their paces.
:31:29. > :31:36.For the next year he will continue in his role at the Berlin
:31:37. > :31:39.Philharmonic, while also being music director of the LSO and the front
:31:40. > :31:45.man of the fund-raising campaign for a new concert hall for London.
:31:46. > :31:47.How important is it to you that concert
:31:48. > :31:51.It was one of the things I first asked the orchestra
:31:52. > :32:00.We all know this is an if, not necessarily a when.
:32:01. > :32:02.It will mean if it happens an enormous amount of
:32:03. > :32:09.He's described the orchestra's current home at the Barbican
:32:10. > :32:12.Centre at merely serviceable and said that that 20%
:32:13. > :32:13.of the the LSO's potential repertoire can't
:32:14. > :32:19.For all the strengths of the Barbican, that also
:32:20. > :32:24.Limitations of size among other things.
:32:25. > :32:32.But also of sight lines of theatrical possibilities.
:32:33. > :32:34.Simon Rattle made his name with the City
:32:35. > :32:36.of Birmingham Symphony Orchestra, now under the direction
:32:37. > :32:38.of Mirga Grazinyte-Tyla, who is operating under
:32:39. > :32:51.One of your great loves has been cut quite hard.
:32:52. > :32:56.No, I mean it's, this is a terrible thing.
:32:57. > :32:59.At the time where the orchestra is on such a high, they
:33:00. > :33:02.have appointed Mirga, who is a simply wonderful conductor,
:33:03. > :33:04.another very charismatic personality.
:33:05. > :33:06.At what point do these sort of cuts start to
:33:07. > :33:11.have a real effect on the the orchestra to perform.
:33:12. > :33:19.He says he will do his best to help - adding another job
:33:20. > :33:30.to a lengthening to do list for his return to Britain in September.
:33:31. > :33:33.Here on BBC One it's time for the news where you are.