17/01/2017 BBC News at Ten


17/01/2017

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Tonight at Ten, the Prime Minister spells out her strategic goals

:00:00.:00:08.

for taking Britain out of the European Union.

:00:09.:00:11.

In a long-awaited speech, Mrs May says Britain will leave

:00:12.:00:14.

the single market, seek new trade agreements and control immigration.

:00:15.:00:23.

While I am sure a positive agreement can be reached,

:00:24.:00:25.

I am equally clear that no deal for Britain is better

:00:26.:00:28.

Parliament will get a vote on the final Brexit deal.

:00:29.:00:36.

Labour says Mrs May's approach involves enormous dangers.

:00:37.:00:39.

If all her optimism of a deal with the European Union didn't work,

:00:40.:00:43.

we would move into a low tax corporate taxation,

:00:44.:00:45.

And an equally unenthusiastic response at the European Parliament

:00:46.:00:51.

It creates an illusion, the illusion that you can go out

:00:52.:00:59.

of the single market, that you can go out of the customs

:01:00.:01:05.

union and that you can cherry-pick, that you can

:01:06.:01:07.

In Scotland, where voters backed Remain, the First Minister said

:01:08.:01:11.

a second independence referendum was still on the cards.

:01:12.:01:16.

I am not prepared for Scotland to be taken down a path that I firmly

:01:17.:01:19.

We will have detail and reaction and be asking business

:01:20.:01:29.

The rising price of fuel and food is a factor in driving inflation

:01:30.:01:34.

to the highest level in two-and-a-half years.

:01:35.:01:35.

And, Sir Simon Rattle talks to us about his plans

:01:36.:01:39.

The Prime Minister has set out her vision for Britain's place

:01:40.:02:20.

in the world after it leaves the European Union.

:02:21.:02:24.

The vision rested on 12 objectives and Theresa May declared that no

:02:25.:02:27.

deal would be better than a bad deal.

:02:28.:02:30.

The main announcement today was that the UK would be leaving

:02:31.:02:33.

the European single market with the aim of negotiating a free

:02:34.:02:35.

The Prime Minister said this would deliver control over

:02:36.:02:41.

And she said the final Brexit deal would be subject to a vote by both

:02:42.:02:49.

Tonight we'll have the detail and the reaction and we start

:02:50.:02:53.

with our political editor Laura Kuenssberg.

:02:54.:02:56.

Good morning. What's the plan?

:02:57.:02:58.

On our way out, not just out of the European Union...

:02:59.:03:07.

Theresa May gathered ministers and ambassadors too.

:03:08.:03:16.

To confirm finally, we will leave behind

:03:17.:03:17.

the way the country has made its living for decades.

:03:18.:03:20.

As a priority, we will pursue a bold and ambitious free trade agreement

:03:21.:03:30.

This agreement should allow for the freest possible trade

:03:31.:03:36.

in goods and services between Britain and

:03:37.:03:38.

It should give British companies the maximum freedom to trade

:03:39.:03:43.

with and operate within European markets, and let European businesses

:03:44.:03:47.

But I want to be clear - what I am proposing cannot mean

:03:48.:03:57.

Privately, ministers had talked of preserving some parts

:03:58.:04:03.

of the special club, the market of hundreds of millions

:04:04.:04:06.

where our businesses can buy and sell without barriers.

:04:07.:04:10.

Remainers had pushed her, but she believes it can't be done,

:04:11.:04:13.

because the rules of the single market come with unlimited

:04:14.:04:16.

The message from the public, before and during the referendum

:04:17.:04:21.

campaign, was clear - Brexit must mean control

:04:22.:04:25.

of the number of people who come to Britain from Europe,

:04:26.:04:28.

Our customs arrangements, how we trade over borders,

:04:29.:04:35.

will change too, but no final decision on how.

:04:36.:04:39.

Her clear hope, though, is that the UK will not pay billions

:04:40.:04:42.

There may be some specific programmes in which we might

:04:43.:04:47.

If so, and this will be for us to decide, it is reasonable

:04:48.:04:52.

we should make an appropriate contribution, but the principle

:04:53.:04:56.

is clear: The days of Britain making vast contributions to the EU every

:04:57.:05:00.

27 other countries will decide if her plans are an ambitious

:05:01.:05:07.

Yet most dramatically, if after two years of talks negotiations stall,

:05:08.:05:15.

she and her team are willing to walk away.

:05:16.:05:18.

Britain wants to remain a good friend and neighbour to Europe,

:05:19.:05:22.

yet I know there are some voices calling for a punitive deal that

:05:23.:05:25.

punishes Britain and discourages other countries from taking

:05:26.:05:29.

Britain would not, indeed, we could not,

:05:30.:05:34.

While I am confident that this scenario need never arise,

:05:35.:05:41.

while I am sure a positive agreement can be reached, I am equally clear

:05:42.:05:45.

that no deal for Britain is better than a bad deal for Britain.

:05:46.:05:49.

But remember, the Prime Minister never wanted to leave.

:05:50.:05:54.

During the referendum campaign, you said plainly that you believed

:05:55.:05:58.

if we left the EU and the single market, the country,

:05:59.:06:02.

its families and citizens, would be worse off.

:06:03.:06:05.

Now, either you have changed your mind, or,

:06:06.:06:10.

as Prime Minister, you have made a decision that you believe

:06:11.:06:14.

will leave the country and its citizens poorer -

:06:15.:06:17.

All the economic indicators have been more positive

:06:18.:06:22.

It is only earlier this week that the IMF confirmed

:06:23.:06:28.

we were the fastest growing economy last year.

:06:29.:06:32.

And what I am talking about today is the country coming together

:06:33.:06:36.

and looking for that brighter future as a global Britain.

:06:37.:06:40.

Did the Brexit backers in the Cabinet get the upper hand?

:06:41.:06:43.

It was an excellent speech, it was optimistic, confident,

:06:44.:06:45.

and it set out our responsibilities in a global context.

:06:46.:06:51.

This wasn't an inward looking, purely European speech.

:06:52.:07:05.

It is negotiable, this is something that I think will be good for the UK

:07:06.:07:08.

Why should they allow us to have our cake and eat it?

:07:09.:07:13.

As the Prime Minister said, it will be good for both sides.

:07:14.:07:16.

Do you think what she set out is achievable?

:07:17.:07:18.

Not exactly nodding along, either, the other parties across the UK.

:07:19.:07:22.

The political consequences of Theresa May's choices are unclear.

:07:23.:07:27.

I think we have to have a deal that ensures we have

:07:28.:07:31.

access to the market, that we have British jobs

:07:32.:07:33.

dependent on that market, that is what we will be pushing for.

:07:34.:07:37.

Whether it is specifically this form of single market, I don't know.

:07:38.:07:41.

She seems to want to have her cake and eat it.

:07:42.:07:45.

To wave the white flag across the Cliffs of Dover,

:07:46.:07:48.

as Theresa May has done, and give up on what's best

:07:49.:07:50.

for Britian is an insult and damaging to Britain's future

:07:51.:07:53.

And don't doubt, a UK outside the single market brings

:07:54.:07:57.

the chance for Scottish voters to choose independence closer.

:07:58.:07:59.

I will not allow Scotland's interests to be steam rollered

:08:00.:08:04.

Do we want to be taken down a path that we didn't vote

:08:05.:08:10.

for and is against all of our interests or do we want to take

:08:11.:08:14.

And that is a choice that I think Scotland has the right to make.

:08:15.:08:19.

Parliament was told today they will get a vote on the final

:08:20.:08:24.

deal but it is plain the Prime Minister believes

:08:25.:08:27.

the country has delivered a clear verdict and she has made her mind

:08:28.:08:30.

Her dilemmas now are persuading a continent what she wants

:08:31.:08:37.

is possible and those who voted to stay in the EU that

:08:38.:08:40.

But this is really only the start of a long process.

:08:41.:08:44.

Concern and criticism won't fade away.

:08:45.:08:50.

The scale of what we decided, how it will change our country

:08:51.:08:54.

and all our lives is still fully to emerge.

:08:55.:08:57.

Laura Kuenssberg, BBC News, Westminster.

:08:58.:09:02.

As we've heard, one of the Prime Minister's most

:09:03.:09:05.

significant announcements was the plan to leave the European

:09:06.:09:09.

single market of around 500 million consumers and the plan to leave

:09:10.:09:13.

the EU customs union, the system which allows goods

:09:14.:09:15.

to move between countries without attracting tariffs.

:09:16.:09:17.

Our correspondent James Landale is here with his analysis

:09:18.:09:20.

of what that could mean for trade in future.

:09:21.:09:25.

The single market is the beating heart of the European Union,

:09:26.:09:29.

the trading arrangement that binds the economic club together.

:09:30.:09:31.

Every EU country is a full member of the club.

:09:32.:09:36.

Norway, Iceland, Liechtenstein and Switzerland are partial members.

:09:37.:09:39.

And they all believe that if they get rid of barriers

:09:40.:09:42.

to trade and allow goods, services, money and workers to move

:09:43.:09:46.

freely across their borders, then their economies will grow.

:09:47.:09:49.

To make this happen, they agree common trading rules,

:09:50.:09:51.

so a widget made in Greece is the same as a widget

:09:52.:09:54.

And they set up a European Court of Justice to make sure

:09:55.:09:59.

Supporters say the single market helps British companies flourish,

:10:00.:10:07.

like this engineering firm in Bristol by making it

:10:08.:10:09.

easier for them to export their goods and employ people

:10:10.:10:13.

I think there's an obvious risk for us outside of the single market,

:10:14.:10:19.

I think any change in the customs regime is probably going

:10:20.:10:26.

But opponents say the single market imposes unnecessary red

:10:27.:10:33.

tape on British firms, like this nappy manufacturer

:10:34.:10:35.

It gives too much power to EU judges and allows in

:10:36.:10:41.

The owner of this firm says the opportunities

:10:42.:10:45.

I think, primarily, we can't remain part of the single market

:10:46.:10:50.

because we want to go out and do our trade deals

:10:51.:10:54.

with countries outside the EU and that's very exciting

:10:55.:10:57.

So to help make that happen, Theresa May wants Britain to have

:10:58.:11:03.

instead the greatest possible access to the single market,

:11:04.:11:09.

particularly for British cars, lorries and financial services

:11:10.:11:12.

and to get that, by negotiating a new free trade deal with the EU.

:11:13.:11:15.

And what about the so-called customs union that Mrs May referred to?

:11:16.:11:27.

This is the arrangement under which European governments impose no

:11:28.:11:30.

tariffs or import taxes on goods traded within the EU but they do

:11:31.:11:33.

agree to charge the same tariffs on goods being imported into any

:11:34.:11:37.

Now the Prime Minister said she didn't want Britain to be

:11:38.:11:41.

She wants Britain instead to be able to set its own tariffs

:11:42.:11:48.

and negotiate its own trade deals with the rest of the world.

:11:49.:11:51.

She said she would accept some kind of customs arrangement with the EU

:11:52.:11:54.

And if there is no deal, British firms could end up paying

:11:55.:12:01.

So this is what the Prime Minister wants.

:12:02.:12:04.

All she has to do now is get the rest of the EU to agree

:12:05.:12:08.

I have just skated over the surface of what are some

:12:09.:12:12.

You can read a lot more in detail on the BBC news website and the BBC

:12:13.:12:16.

reality check's assessment of how any deal might work.

:12:17.:12:23.

Business leaders are still divided on the implications of Brexit

:12:24.:12:28.

but most of them today seemed to welcome some new clarity

:12:29.:12:31.

from the Prime Minister on the Government's goals.

:12:32.:12:34.

Theresa May promised that changes to immigration,

:12:35.:12:37.

customs and regulation would be phased in, to avoid disruption.

:12:38.:12:40.

Some of Britain's most prominent business leaders

:12:41.:12:43.

are at World Economic Forum in Davos, in Switzerland.

:12:44.:12:45.

Our business correspondent Simon Jack has been

:12:46.:12:47.

There's nothing like a bit of mountain air to give you clarity.

:12:48.:12:57.

Business leaders gathered here in Switzerland were watching

:12:58.:12:59.

the Prime Minister today for exactly that.

:13:00.:13:00.

I think what we learn from the Prime Minister's speech

:13:01.:13:05.

today was clarity first of all, really codified what many of us

:13:06.:13:08.

had been anticipating since the referendum result,

:13:09.:13:10.

particularly around the single market.

:13:11.:13:14.

I think what we've also seen today is the government's willingness

:13:15.:13:16.

to put a bit of edge into the negotiating

:13:17.:13:18.

dynamic, and I think that makes a lot of sense.

:13:19.:13:21.

Trade negotiations are negotiations, and you have to lay out and you have

:13:22.:13:24.

to be pretty tough to get what you want.

:13:25.:13:26.

For some the uncertainty is still too great.

:13:27.:13:29.

Lloyd's of London, the insurance market, has a ready decided to move

:13:30.:13:32.

We've still got to pursue a subsidiary in the EU

:13:33.:13:40.

for post-Brexit world, meaning that we can still serve our

:13:41.:13:42.

customers and policyholders in those European Union countries.

:13:43.:13:45.

So, no ifs, no buts, no single market.

:13:46.:13:48.

And with the continuing question mark over whether we are a partial

:13:49.:13:57.

member of the customs union, many will say it takes

:13:58.:14:00.

a continent to build a car and if there are hold-ups

:14:01.:14:03.

at the border that could be bad news.

:14:04.:14:05.

And the car industry gave MPs its version of clarity

:14:06.:14:07.

on the consequences of not getting a good trade deal.

:14:08.:14:12.

The cars that we import, and remember we import about 80%

:14:13.:14:16.

of the vehicles we sell in the UK, that would add about ?2.7 billion,

:14:17.:14:22.

Financial markets were watching closely, too.

:14:23.:14:28.

Suddenly the pound rocketed against the dollar at the very

:14:29.:14:32.

moment the Prime Minister offered MPs a chance to vote

:14:33.:14:34.

Markets making one last bet that Brexit could still be derailed.

:14:35.:14:43.

Even some of the business world staunchest Remainers weren't fooled

:14:44.:14:45.

and are now resigned to knuckling down to the political reality.

:14:46.:14:48.

Most businesses are trying to move forward positively,

:14:49.:14:51.

and accepting the result of the referendum.

:14:52.:14:54.

Trying to make sure the complexity of this is well understood

:14:55.:14:57.

and we take the steps both in government and business to deal

:14:58.:15:00.

with this and minimise the impacts of this very compact process.

:15:01.:15:02.

The government shed some light on its priority, but business knows

:15:03.:15:07.

we are still in the foothills of a massive undertaking.

:15:08.:15:09.

The main Brexit negotiator for the European Parliament,

:15:10.:15:18.

Guy Verhofstadt, has warned that it's an illusion

:15:19.:15:21.

to think Britain will be allowed to keep the advantages of trade

:15:22.:15:23.

with the European Union without accepting the obligations.

:15:24.:15:25.

Our correspondent Damian Grammaticas has been

:15:26.:15:27.

assessing the reaction among members of the European

:15:28.:15:29.

He wasn't commenting, but Jean-Claude Juncker,

:15:30.:15:38.

listening to Theresa May - keen to hear her vision for Brexit.

:15:39.:15:47.

The response from the European Parliament's chief negotiator -

:15:48.:15:50.

It creates also an illusion that you can go out of

:15:51.:15:55.

the single market, that you can go out of the customs

:15:56.:15:58.

union and that you can cherry-pick and have

:15:59.:16:00.

And, yeah, I think that will not happen.

:16:01.:16:08.

The EU today was busy with its own affairs,

:16:09.:16:12.

electing a new President of the European Parliament.

:16:13.:16:15.

Many here are sceptical the UK can get all it wants in a

:16:16.:16:18.

We will all love to have a Europe a la carte!

:16:19.:16:26.

It is a ridiculous idea, but this is serious, we have a lot of

:16:27.:16:30.

countries here, a lot of people and we have

:16:31.:16:32.

and this is not, you know, a Europe a la carte.

:16:33.:16:38.

Outside, an Italian school group on an EU tour.

:16:39.:16:43.

Quitting the single market and shunning its

:16:44.:16:44.

freedom of movement will - some believe - be a painful

:16:45.:16:47.

Something - they say - Theresa May did not address.

:16:48.:16:52.

I expect many businesses from the UK to move to Europe.

:16:53.:16:56.

I expect also some financial companies providing services from

:16:57.:16:59.

So there will be some significant losses.

:17:00.:17:08.

Theresa May hasn't mentioned a word about these

:17:09.:17:10.

potential costs and potential losses.

:17:11.:17:15.

As for the threat Mrs May may walk away, choosing no deal if

:17:16.:17:18.

she isn't satisfied - that hasn't gone down well, even

:17:19.:17:20.

No deal will also be bad for the United Kingdom.

:17:21.:17:26.

So it it isn't as if they hold all the cards.

:17:27.:17:28.

The United Kingdom will look after its own interests.

:17:29.:17:31.

And here today one MEP summed up reactions to me,

:17:32.:17:36.

saying he thought Theresa May was overselling to the British people

:17:37.:17:40.

both what she could achieve in trade deals with other countries

:17:41.:17:42.

and how much access she would get to the single market.

:17:43.:17:46.

Damian Grammaticas, BBC News, Strasbourg.

:17:47.:17:51.

The Prime Minister claimed today that she wanted to act

:17:52.:17:54.

in the interests of all parts of the UK and said the devolved

:17:55.:17:57.

administrations should be fully engaged in the process of Brexit.

:17:58.:17:59.

But how was that viewed in Glasgow, Cardiff and Belfast?

:18:00.:18:02.

Let's start with our Scotland editor Sarah Smith.

:18:03.:18:11.

Well Nicola Sturgeon responded to Theresa May's speech today by saying

:18:12.:18:16.

she thinks it has increased the chances that there may be a second

:18:17.:18:24.

referendum on Scottish independence. He said the UK was heading for a

:18:25.:18:31.

hard Brexit that could be cat catastrophic. Last year Nicola

:18:32.:18:34.

Sturgeon presented the Prime Minister with a paper outlining how

:18:35.:18:41.

she believes Scotland could stay in the single market. But they would

:18:42.:18:44.

need the consent of the UK Government and Nicola Sturgeon said

:18:45.:18:47.

she doesn't believe Theresa May is taking that seriously. So that is

:18:48.:18:52.

why she says although a majority in Scotland according to the opinion

:18:53.:18:55.

polls don't favour independence, nonetheless she thinks the prospect

:18:56.:19:00.

of a second vote is now more likely. Northern Ireland is the part of UK

:19:01.:19:05.

most exposed to fallout from Brexit, because it shares a board we are the

:19:06.:19:10.

Irish republic. Theresa May was quick to point out there would be no

:19:11.:19:14.

return to the borders of past and said the common travel area would be

:19:15.:19:18.

preserved. But questions remain and one key question is this - the UK

:19:19.:19:24.

wants to limit and control immigration from the EU. But how

:19:25.:19:28.

would that be possible if Ireland has an open border? And if the UK

:19:29.:19:39.

steps outside the customs union, won't that lead to a hard board

:19:40.:19:47.

border with customs posts. Wales voted to leave, but some concerns

:19:48.:19:54.

today, particularly in areas like manufacturing and farming, still

:19:55.:19:59.

very strong in Wales and reliant on the EU. The First Minister has a

:20:00.:20:06.

problem, he has called for full access to the single market, today's

:20:07.:20:10.

announcement won't make that any easier. He knows that and that is

:20:11.:20:16.

why he has said he thinks are going in the wrong direction and there is

:20:17.:20:25.

the question of politic leverage, if he complains too much, people in

:20:26.:20:29.

Westminster will say they're delivering what the people in Wales

:20:30.:20:33.

voted for which is Brexit. Thank you.

:20:34.:20:36.

As we've heard, the Prime Minister acknowledged that last year's

:20:37.:20:38.

referendum campaign had been divisive, but insisted that people

:20:39.:20:40.

We sent our correspondent Jeremy Cooke to see how those

:20:41.:20:44.

on different sides of the argument had responded to today's speech.

:20:45.:20:57.

Boston, an ancient English town a changing landscape. On the bus,

:20:58.:21:03.

plenty of support for the Prime Minister's speech. The Brexit vote

:21:04.:21:09.

here was 75%. More than one in ten people here are EU migrants. We want

:21:10.:21:14.

that cutting definitely. What effect has it had on town? This town? It's

:21:15.:21:20.

killed it. Is it worth paying to come out of the single market to

:21:21.:21:25.

control immigration? I think so yes. You have got to control it. At the

:21:26.:21:31.

Boston bodies hub it is 60s dance work out. The project is largely

:21:32.:21:36.

EU-funded, but most here voted Brexit. Many worried about levels of

:21:37.:21:45.

immigration. It has got too much now. We may lose trade from Europe.

:21:46.:21:49.

What do you think about that trade off? The trade off I think will be

:21:50.:21:54.

worth it, because Britain's big enough to take care of itself. I

:21:55.:21:57.

think Britain could cope. Your confident? Yes it is Great Britain

:21:58.:22:09.

and Europe needs us. Outside the agricultural heartland and many

:22:10.:22:13.

crops being prepared today will need migrant workers to pick and to

:22:14.:22:18.

process. Within the industry we need labour and without it we will

:22:19.:22:21.

starve. What would you say to Theresa May in terms of what you

:22:22.:22:28.

need as an industry? I hope she will allow labour to be filled in the

:22:29.:22:33.

farming industry. These works are essential? Yes. They are absolutely

:22:34.:22:38.

essential. An hour's drive and we are on the the banks of the Trent.

:22:39.:22:45.

Here they voted 57% to remain in the EU. At this cafe, a different view

:22:46.:22:52.

of the speech. I voted remain. And I was quite surprised by the outcome

:22:53.:22:56.

of the vote, but Theresa May has outlined what the country voted for,

:22:57.:23:01.

which is Brexit. And I think we need clear leadership to make sure that

:23:02.:23:07.

is what happens. S s. Not everyone is as relaxed. We don't realise how

:23:08.:23:14.

bad it is. Do you think we are clearer about what Brexit means? No.

:23:15.:23:19.

No I don't. Her message was the same - Brexit means Brexit. But we still

:23:20.:23:25.

don't really know... What it means! For the Prime Minister then, Brexit

:23:26.:23:28.

remains the greatest of political challenges. In this still divided

:23:29.:23:31.

nation. Our political editor

:23:32.:23:37.

Laura Kuenssberg is at Westminster. More clarity on the goals, but

:23:38.:23:46.

surely all of these are still just aspirations until the talks take

:23:47.:23:50.

place? Yes, we didn't get chapter and verse on what our new

:23:51.:23:54.

immigration system will look like outside the EU. Theresa May said she

:23:55.:23:58.

still had an open mind over how we deal with customs and trade over the

:23:59.:24:03.

borders. So there is a lot still to be decided and argued over over a

:24:04.:24:07.

process that will take years, not months. But the bold, brush strokes

:24:08.:24:13.

were there, explicitly for the first time. And it is a reminder to those

:24:14.:24:23.

who see Theresa May as being caution and mistake that for being meek. But

:24:24.:24:29.

the real rub is whether or not she is being hopelessly optimistic. Is

:24:30.:24:34.

this all a delusion, or is she being clear ahead of a complicated dip low

:24:35.:24:40.

mattedic dance -- diplomatic dance. But that will be a process of

:24:41.:24:47.

negotiation with 27 other countries. We are outnumbered in the

:24:48.:24:51.

negotiations and there is scepticism around the continent over whether

:24:52.:24:55.

what she has promised is remotely achievable and it is a process of

:24:56.:25:00.

negotiation, slow negotiation, that will come to that judgmentment and

:25:01.:25:08.

David Cameron was forced to go after a European negotiation that went

:25:09.:25:11.

wrong for him. Not long ago he quit just on that spot there. Although so

:25:12.:25:16.

much has happened since then, it is only about six months ago, the

:25:17.:25:20.

memory of that somehow hangs heavy in this street tonight. Thank you.

:25:21.:25:28.

Let's turn some of the day's other news.

:25:29.:25:30.

The annual rate of inflation - measured by the Consumer Prices

:25:31.:25:32.

Index - rose more than expected in December to its highest level

:25:33.:25:35.

driven in part by the fall in the value of sterling

:25:36.:25:40.

after the Brexit vote, as well a rise in air fares

:25:41.:25:43.

Our Economics Correspondent Andrew Verity has been

:25:44.:25:47.

This haulier based near Heathrow Airport is facing sharply

:25:48.:25:53.

Fuel had been falling in price, but on today's inflation

:25:54.:25:59.

The company can absorb that cost but not forever.

:26:00.:26:05.

If the cost of the fuel starts to bite, eventually we will

:26:06.:26:08.

have to put a fuel surcharge in like everybody else in this

:26:09.:26:11.

industry once we go past a certain level, because

:26:12.:26:13.

we cannot afford to keep those costs in house.

:26:14.:26:16.

The effect of the weaker pound is most obvious up the supply

:26:17.:26:21.

chain, where raw materials, most of them imported,

:26:22.:26:23.

So far producers haven't been passing most of that on, with

:26:24.:26:28.

Only now is that starting to feed through to shop prices, up 1.6%.

:26:29.:26:39.

The bigger move from the sterling effect

:26:40.:26:41.

is still to come, because contracts have to be renewed, that is where we

:26:42.:26:44.

think inflation moves up much further from the 1.6% we have seen

:26:45.:26:47.

Today, the weak pound started to hit smart phone

:26:48.:26:54.

users where it really hurts - in the apps.

:26:55.:26:59.

Apple announced it was raising the cost of apps costing 79

:27:00.:27:01.

From Apple's point of view, what money it makes here in pounds

:27:02.:27:07.

has to be translated back into dollars and

:27:08.:27:11.

right now that means it is getting fewer dollars than it did, so it has

:27:12.:27:15.

Food prices are still lower than they

:27:16.:27:18.

were a year ago and competition between retailers is preventing

:27:19.:27:20.

them from raising the prices of most goods.

:27:21.:27:24.

But the upward pressure on costs is likely do build.

:27:25.:27:26.

Expect higher inflation in the months to come.

:27:27.:27:28.

A brief look at some of the day's other other news stories.

:27:29.:27:36.

President Obama has commuted the sentence of Chelsea Manning,

:27:37.:27:38.

who was found guilty of leaking US army documents and is serving

:27:39.:27:41.

The White House says Chelsea Manning - who served as a soldier in Iraq

:27:42.:27:48.

and was formerly known as Bradley Manning -

:27:49.:27:50.

The Supreme Court has cleared the way for a Libyan man

:27:51.:27:57.

to take legal action against the Government,

:27:58.:27:59.

Abdel-Hakim Belhaj says MI6 provided information that enabled the US

:28:00.:28:07.

to abduct him and his wife in Asia and their rendition to Tripoli.

:28:08.:28:12.

Mr Belhaj intends to sue the former Foreign Secretary, Jack Straw,

:28:13.:28:14.

who was responsible for MI6 at the time.

:28:15.:28:16.

Concerns about security at a Tunisian resort where 30

:28:17.:28:23.

Britons were killed by an Islamist gunman were raised months before

:28:24.:28:26.

The inquest has heard that a report in January 2015 for the UK

:28:27.:28:32.

Government suggested there was a low standard of protection at some hotel

:28:33.:28:35.

President Putin has dismissed allegations that Russia had gathered

:28:36.:28:43.

compromising material on US president-elect Donald Trump

:28:44.:28:45.

The Russian President said the leaked information,

:28:46.:28:51.

which appeared last week in the US media, was obviously fake.

:28:52.:28:59.

One of Donald Trump's closest advisers has told the BBC

:29:00.:29:01.

that the United States would win any trade war with China.

:29:02.:29:05.

Anthony Scaramucci has warned that retaliation over tariffs will hurt

:29:06.:29:08.

China's President spoke today about the benefits

:29:09.:29:13.

of globalisation, saying protectionism was 'like

:29:14.:29:14.

The speech was delivered at the World Economic Forum in Davos.

:29:15.:29:22.

our economics editor Kamal Ahmed is there.

:29:23.:29:28.

With those remarks, do you think the prospect comes closer of some kind

:29:29.:29:35.

of trade war between China and the United States? Well, the president

:29:36.:29:41.

of China made it clear he didn't want a trade war and didn't believe

:29:42.:29:45.

anyone would win if there was a trade war between China and America.

:29:46.:29:51.

It is minus 17 degrees here in Davos tonight and it looks like the

:29:52.:29:56.

US/Chinese relationship is about as chilly as that. We had a remarkable

:29:57.:30:02.

through the looking glass moment today, the leader of the largest

:30:03.:30:07.

communist party in the world coming to the home of capitalism, the World

:30:08.:30:21.

Economic Forum, extolling the virtues of free trade as Donald

:30:22.:30:26.

Trump said he wants to rip up free trade. The China president is

:30:27.:30:35.

playing a clever game, as America turns inward he think hs deextend

:30:36.:30:40.

the influence of China -- he can extend the influence of China. He

:30:41.:30:44.

said he didn't want a trade war, but his tough words today felt like he

:30:45.:30:48.

might be preparing for one. Thank you.

:30:49.:30:52.

Sir Simon Rattle - the new music director

:30:53.:30:54.

of the London Symphony Orchestra - says he'll start his first

:30:55.:30:57.

season in September with a 10-day celebration,

:30:58.:31:00.

including an all-British line-up of composers

:31:01.:31:01.

Sir Simon - who is currently the artistic director

:31:02.:31:06.

of the Berlin Philharmonic - has been speaking to our Arts

:31:07.:31:08.

The London Symphony Orchestra in rehearsal of of a new work by the

:31:09.:31:22.

British composer, Mark Anthony Turnage,

:31:23.:31:23.

with Simon Rattle - soon to be

:31:24.:31:25.

their new boss - taking them through their paces.

:31:26.:31:28.

For the next year he will continue in his role at the Berlin

:31:29.:31:36.

Philharmonic, while also being music director of the LSO and the front

:31:37.:31:39.

man of the fund-raising campaign for a new concert hall for London.

:31:40.:31:45.

How important is it to you that concert

:31:46.:31:47.

It was one of the things I first asked the orchestra

:31:48.:31:51.

We all know this is an if, not necessarily a when.

:31:52.:32:00.

It will mean if it happens an enormous amount of

:32:01.:32:02.

He's described the orchestra's current home at the Barbican

:32:03.:32:09.

Centre at merely serviceable and said that that 20%

:32:10.:32:12.

of the the LSO's potential repertoire can't

:32:13.:32:13.

For all the strengths of the Barbican, that also

:32:14.:32:19.

Limitations of size among other things.

:32:20.:32:24.

But also of sight lines of theatrical possibilities.

:32:25.:32:32.

Simon Rattle made his name with the City

:32:33.:32:34.

of Birmingham Symphony Orchestra, now under the direction

:32:35.:32:36.

of Mirga Grazinyte-Tyla, who is operating under

:32:37.:32:38.

One of your great loves has been cut quite hard.

:32:39.:32:51.

No, I mean it's, this is a terrible thing.

:32:52.:32:56.

At the time where the orchestra is on such a high, they

:32:57.:32:59.

have appointed Mirga, who is a simply wonderful conductor,

:33:00.:33:02.

another very charismatic personality.

:33:03.:33:04.

At what point do these sort of cuts start to

:33:05.:33:06.

have a real effect on the the orchestra to perform.

:33:07.:33:11.

He says he will do his best to help - adding another job

:33:12.:33:19.

to a lengthening to do list for his return to Britain in September.

:33:20.:33:30.

Here on BBC One it's time for the news where you are.

:33:31.:33:33.

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