10/11/2017

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0:00:14 > 0:00:15This is Business Briefing.

0:00:15 > 0:00:20I'm Sally Bundock.

0:00:20 > 0:00:22The headlines: Under pressure.

0:00:23 > 0:00:26Round 6 of Brexit talks end today, amid warnings Britain has just two

0:00:26 > 0:00:30weeks to break the deadlock.

0:00:30 > 0:00:33Plus - it was all sewn up, now a $29 trillion trade deal

0:00:33 > 0:00:34lies in tatters.

0:00:34 > 0:00:38But is there life after Trump for the Trans Pacific Partnership?

0:00:38 > 0:00:44And on the markets:

0:00:44 > 0:00:48A mixed day emerging across the board in Asia, following a downbeat

0:00:48 > 0:00:49day on Wall Street the

0:01:03 > 0:01:06We start in Brussels, where EU and UK negotiators

0:01:06 > 0:01:12are about to wrap up the sixth round of Brexit talks.

0:01:12 > 0:01:19EU sources have told the BBC that Britain has as little as two weeks

0:01:19 > 0:01:22to make progress on deadlocked issues, particularly the so called

0:01:22 > 0:01:25divorce bill, if its to move on to trade talks at the EU

0:01:25 > 0:01:26summit in December.

0:01:26 > 0:01:29Meanwhile, former UK prime minister Gordon Brown has warned that the UK

0:01:29 > 0:01:33may hit a "crisis point next summer" as the UK edges closer to Brexit

0:01:33 > 0:01:36without a deal and held out the possibility that the UK may not

0:01:37 > 0:01:43leave the EU.

0:01:43 > 0:01:47I think what's going to happen is we are going to come to a crisis point

0:01:47 > 0:01:51next summer and I can't tell you exactly how it is going to work

0:01:51 > 0:01:55itself out but this is what will happen. By next summer the public

0:01:55 > 0:01:59will have made up their mind that the four red line is that the

0:01:59 > 0:02:03government had actually set in place are not going to be achievable. So

0:02:03 > 0:02:06we will not have proper control of borders, we will not have proper

0:02:06 > 0:02:11control of our money, we will not have proper control of our courts

0:02:11 > 0:02:17and law because we will still be governed in many ways by the

0:02:17 > 0:02:20European Court of Justice and we won't have individual trade and

0:02:20 > 0:02:25agreements for years. So all the propositions made by the Leave camp,

0:02:25 > 0:02:29including 350 million a week from the national health service, they

0:02:29 > 0:02:33aren't being achieved. So we need to assess the position and in my view

0:02:33 > 0:02:36you can't go back to the electorate and say, you were wrong. You can't

0:02:36 > 0:02:48do that. People have made their decision and it is -- right for that

0:02:48 > 0:02:52to happen. But is there a game changer? Is there something we

0:02:52 > 0:02:56didn't get right last time that would persuade millions of Leave

0:02:56 > 0:03:01voters to think it was worth going for Remain?

0:03:01 > 0:03:05With me is Dr Elaine Fahey, from City Law School.

0:03:05 > 0:03:13Good morning. What do you make of what he had to say, the possibility

0:03:13 > 0:03:18of a game changer, the possibility of the UK remaining?There are lots

0:03:18 > 0:03:23of legal possibilities to extend the negotiation period for the UK to

0:03:23 > 0:03:27withdraw its notification. All of these things are possible. From a

0:03:27 > 0:03:32short-term perspective a huge question about how to manage this

0:03:32 > 0:03:37gap in the phase we are now and to move onwards to face the

0:03:37 > 0:03:41negotiation.The EU is putting pressure on the UK, saying we have

0:03:41 > 0:03:45two weeks to get to the next steps we can discuss trade. But the

0:03:45 > 0:03:48problem is the real sticking point, the question of Northern Ireland,

0:03:48 > 0:03:55the divorce Bill, it seems to be very little movement on those or

0:03:55 > 0:04:01agreement on those.There are still huge stumbling blocks to do with any

0:04:01 > 0:04:07of these questions. The European Parliament has just writ -- rejected

0:04:07 > 0:04:13the latest issues regarding human rights. The customs issues have come

0:04:13 > 0:04:17to the table. They say we must stay within the union for that. At every

0:04:17 > 0:04:21stage there are enormous gaps to be bridged, so it remains a difficult

0:04:21 > 0:04:26question, how to get out of this stage.The EU say... How did they

0:04:26 > 0:04:29freighted? They want to see a certain amount of progress?

0:04:29 > 0:04:37Sufficient progress. How do you define sufficient progress? It is an

0:04:37 > 0:04:42interpretation of the law in many ways.It is unambiguous idea as to

0:04:42 > 0:04:47what the law is. It is hard to see how to get out of the situation

0:04:47 > 0:04:54without having the political determination.Do you hope that in

0:04:54 > 0:04:58two weeks we will be able to discuss trade?I think it will be very

0:04:58 > 0:05:06difficult to meet that test, given the fact that the customs union has

0:05:06 > 0:05:11150 areas between Ireland and the UK, between citizens rights, about

0:05:11 > 0:05:17750 treaties between the EU and UK. Thank you very much for your time.

0:05:17 > 0:05:21Of course we should keep a close eye on those talks and we will let you

0:05:21 > 0:05:25know of any progress made or otherwise. Let's focus on rage of --

0:05:25 > 0:05:34Asia. President Trump is continuing his tour. He has just landed in

0:05:34 > 0:05:39Vietnam for the summit. The US president sent shock waves around

0:05:39 > 0:05:45the region when he pulled out of a massive trade deal, the newly

0:05:45 > 0:05:47announced Trans-Pacific Partnership. Other countries involved are now

0:05:47 > 0:05:54trying to salvage that deal. Let's show you some detail, including the

0:05:54 > 0:06:01US -- that the US would have been worth about 38% of world GDP,

0:06:01 > 0:06:08according to research. Without US involvement you can cut back to $10

0:06:08 > 0:06:13trillion, or just 13.5% of the world economy. The US retreat from the

0:06:13 > 0:06:16deal is also providing a big opportunity for China and the

0:06:16 > 0:06:23dilemma for smaller countries, like Vietnam. Our correspondent has been

0:06:23 > 0:06:30finding out. Vietnam is one of the world's biggest garment exporters.

0:06:30 > 0:06:34And you can see why at this factory in Ho Chi Minh City, which produces

0:06:34 > 0:06:39everything from men's suits the women's coats.Every single day.

0:06:39 > 0:06:44Some of America's best-known brands are made here under the watchful eye

0:06:44 > 0:06:49of Michael. The US is still his biggest customer, despite it pulling

0:06:49 > 0:06:54out of the DPP.But that could change. We are starting to see many

0:06:54 > 0:07:00enquiries from some of China's largest garment producers as well as

0:07:00 > 0:07:04fabric producers and we see that as being a very profitable business.

0:07:04 > 0:07:08China is already a major customer for Vietnam's against coffee

0:07:08 > 0:07:12exporter and grains provide. It sells rice to China, but also

0:07:12 > 0:07:17exports to the US. The chairman says Vietnam needs to balance these

0:07:17 > 0:07:22competing interests.The US and China are both powerful countries,

0:07:22 > 0:07:27but they are also locked in conflict. They both want to drag

0:07:27 > 0:07:31Vietnam to their side and Vietnam should take advantage of that.

0:07:31 > 0:07:34Member Vietnam's economy is still pretty basic. It's about supplying

0:07:34 > 0:07:39raw materials and produce to market elsewhere and labour-intensive

0:07:39 > 0:07:45manufacturing. That's why this is so important. If the original U.S.-led

0:07:45 > 0:07:50TBB deal had gone through it would have boosted Vietnam's economy by

0:07:50 > 0:07:57about 10% over the next couple of decades and that would have lifted

0:07:57 > 0:08:02the impacts on people here. That's why it is on the agenda of the

0:08:02 > 0:08:06summit, held here. Both Vietnam and China have clashed over the waters,

0:08:06 > 0:08:10but the US's lack of engagement means Hanoi may have the edge closer

0:08:10 > 0:08:13to Beijing.

0:08:13 > 0:08:16Now let's brief you some other business stories.

0:08:16 > 0:08:19Walt Disney has seen annual profits fall for the first time since 2009,

0:08:19 > 0:08:21amid growing competition from streaming services like Netflix.

0:08:22 > 0:08:24Shares though rallied after it announced a deal to make three

0:08:25 > 0:08:28new Star Wars movies.

0:08:28 > 0:08:31The CEO refused to comment on reports it has held talks

0:08:31 > 0:08:33on a partial takeover of Twenty First Century Fox,

0:08:33 > 0:08:37but did not rule out making an acquisition.

0:08:39 > 0:08:43US interest rates are likely to rise again next month and a further three

0:08:43 > 0:08:46times next year, according to one of the Federal Reserve's rate-setters.

0:08:47 > 0:08:49John Williams, who sits on the Fed's Open Markets Committee,

0:08:49 > 0:08:52said a rate rise in December "makes sense, at least based

0:08:52 > 0:08:55on the information I have today".

0:08:55 > 0:08:59on the information I have today".

0:08:59 > 0:09:02One of the founders of Facebook, Sean Parker, has unloaded

0:09:02 > 0:09:05worries and criticisms of the network at a technology

0:09:05 > 0:09:08industry event, saying he had no idea what he was doing at the time

0:09:09 > 0:09:10of its creation.

0:09:10 > 0:09:14He described the thought process behind social media applications as:

0:09:14 > 0:09:17"How do we consume as much of your time and conscious

0:09:17 > 0:09:18attention as possible?

0:09:18 > 0:09:28God only knows what it's doing to our children's brains."

0:09:29 > 0:09:30And now - what's trending in the business news this morning?

0:09:34 > 0:09:39That is our conversation today. What do you think about what Sean Parker

0:09:39 > 0:09:47had to say? Looking at what is trending, the courts and social

0:09:47 > 0:09:52media are discussing a new Star Wars trilogy.

0:09:52 > 0:09:55Quartz says Disney just performed an old Jedi mind trick

0:09:55 > 0:09:57on Wall Street, distracting investors from falling profits.

0:09:57 > 0:10:00From the Business Insider, Dubai has tested an autonomous

0:10:00 > 0:10:02flying taxi drone, which they hope could be the future

0:10:02 > 0:10:11of passenger travel.

0:10:11 > 0:10:14And this is a really shocking story highlighted by the Financial Times

0:10:14 > 0:10:15and this is trending.

0:10:15 > 0:10:18Indian city locks up its beggars ahead of Ivanka Trump visit.

0:10:18 > 0:10:21Authorities in Hyderabad have taken hundreds of people off the street

0:10:21 > 0:10:26for causing "annoyance and awkwardness".

0:10:28 > 0:10:32And don't forget, let's us know what you are spotting online.

0:10:32 > 0:10:36Use the hashtag BBC-The-Briefing.

0:10:36 > 0:10:40Looking at the markets, this time yesterday we had strong gains across

0:10:40 > 0:10:45the board in Asia, especially Japan. It was at a 25 year high at one

0:10:45 > 0:10:49point. Markets have come down little bit. Japan just over 1%. There is

0:10:49 > 0:10:54talk of concern about the tax changes in the US. They may not be

0:10:54 > 0:11:00as robust as Trump has promised. See you soon for the News Briefing.