13/11/2017

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0:00:13 > 0:00:14This is Business Briefing.

0:00:14 > 0:00:20I'm Sally Bundock.

0:00:20 > 0:00:21Brexit summit at Downing Street.

0:00:21 > 0:00:25The UK Prime Minister meets European business leaders to hear their views

0:00:25 > 0:00:32on how to make a smooth separation from the European Union.

0:00:32 > 0:00:33And a new passenger on board.

0:00:33 > 0:00:36Ride-hailing firm Uber strikes a huge investment deal with Japan's

0:00:36 > 0:00:46SoftBank.

0:00:46 > 0:00:50These other markets across the board. That is Friday's close in the

0:00:50 > 0:00:55United States but in Asia, a mixed day emerging as they take stock of

0:00:55 > 0:01:01the massive rallies we saw in Asia last week.

0:01:01 > 0:01:07the massive rallies we saw in Asia last week.

0:01:12 > 0:01:14As Britain's departure from the European Union draws ever

0:01:14 > 0:01:16closer, there is growing scrutiny over future trade links

0:01:17 > 0:01:18between the two sides.

0:01:18 > 0:01:20So, for the first time, Prime Minister Theresa May

0:01:20 > 0:01:22will welcome European business leaders to Downing Street later.

0:01:23 > 0:01:25She wants their input on how to minimise disruption

0:01:25 > 0:01:32after March 2019.

0:01:32 > 0:01:3415 leading business organisations from across the continent,

0:01:34 > 0:01:36including experts from the Confederation of British Industry

0:01:36 > 0:01:51and Institute of Directors, will be there.

0:01:51 > 0:01:54Last year, the UK exchanged about $730 billion worth of goods

0:01:54 > 0:01:56and services with the other 27 EU countries.

0:01:56 > 0:01:58That amounts to 43% of total UK exports.

0:01:58 > 0:02:01The export of cars and chemicals take the biggest share.

0:02:01 > 0:02:04Mrs May had a bit of a torrid weekend, with some of her party

0:02:05 > 0:02:08allegedly preparing for a vote of no confidence in the Prime Minister.

0:02:08 > 0:02:10But her Defence Secretary came out in her defence,

0:02:10 > 0:02:27and said that, with Brexit, she is towing a straight line.

0:02:27 > 0:02:30The Prime Minister in her Florence speech made absolutely clear the

0:02:30 > 0:02:34generous offer that reason is putting forward. We want to have a

0:02:34 > 0:02:37cooperative relationship with Europe, but she has always made it

0:02:37 > 0:02:43absolutely clear that actually we have to get the right deal for

0:02:43 > 0:02:45Britain, and that is what she will deliver.

0:02:45 > 0:02:48With me is Thomas Cole, head of policy at Open Britain.

0:02:48 > 0:02:54Good morning. That is one view, of course, her ministers rallying

0:02:54 > 0:02:59around her. But in terms of the day ahead she has quite a difficult

0:02:59 > 0:03:03audience, hasn't she? A tough offer to convince these business leaders

0:03:03 > 0:03:07negotiations are going well.She certainly has, we heard in your

0:03:07 > 0:03:11opening remarks that the British chamber of industry will be there

0:03:11 > 0:03:14and a number of key European players, counterparts in Germany,

0:03:14 > 0:03:19France and Italy. They will want to hear what is the likelihood of there

0:03:19 > 0:03:23being any breakthroughs on negotiations and at what point does

0:03:23 > 0:03:27Theresa May think negotiations can move forward to the future

0:03:27 > 0:03:30arrangement, including the trade arrangement. At the moment it is not

0:03:30 > 0:03:34looking great. The plan was originally to have an agreement in

0:03:34 > 0:03:38October, to be able to move forward at that point. That hasn't happened.

0:03:38 > 0:03:43What we have now is that there should be an agreement in December,

0:03:43 > 0:03:47when 28 heads of government meet to discuss negotiations. And things are

0:03:47 > 0:03:51not looking too good so business leaders will be very concerned about

0:03:51 > 0:03:55what is going to happen in the short, medium and long-term.She is

0:03:55 > 0:03:59likely to say to them that she is looking for a transition agreement

0:03:59 > 0:04:03where will have two years post- March 2019 to continue trading in

0:04:03 > 0:04:08the way they are now, in order to get themselves ready for change. Is

0:04:08 > 0:04:13that really likely?Well, I think on the one hand the transition is

0:04:13 > 0:04:16clearly needed. Theresa May spelt out in her Florence speech at the

0:04:16 > 0:04:20end of September that is what she wanted. That hasn't been translated

0:04:20 > 0:04:23into any official negotiating position by the British government.

0:04:23 > 0:04:29It is clear that from the EU 27 side, as well as the European

0:04:29 > 0:04:32Parliament, they said it could be possible. In the case of member

0:04:32 > 0:04:35State Government they said only that it should be time-limited. So there

0:04:35 > 0:04:39is clearly willingness for that. The question is is two years long

0:04:39 > 0:04:43enough? It would be the status quo, so the UK staying in the single

0:04:43 > 0:04:47market and the customs union and if that were the case and at least

0:04:47 > 0:04:51until March 2021, trade would continue as it is today. The

0:04:51 > 0:04:57question is what happens after March 2021, and in the period until a new

0:04:57 > 0:05:01trade relationship has been agreed. It is unlikely that, if you were to

0:05:01 > 0:05:04start trade negotiations after the December council, early next year,

0:05:04 > 0:05:10that at that point until March 2021, it may not be enough time to agree

0:05:10 > 0:05:13the future relationship. In many respects you may actually be longer

0:05:13 > 0:05:17transition period, and I'm not sure that within Theresa May's government

0:05:17 > 0:05:22she has support for that.Thank you very much indeed. Just to say, at

0:05:22 > 0:05:26that discussion in Downing Street, we have mentioned those attending

0:05:26 > 0:05:31but also Brexit secretary, David Davis, and the business live page

0:05:31 > 0:05:38will update you on what we here in terms of how it goes. -- what we

0:05:38 > 0:05:38hear.

0:05:38 > 0:05:42Uber has confirmed to the BBC that it has entered an agreement

0:05:42 > 0:05:43with Japan's SoftBank over a potential investment.

0:05:44 > 0:05:46Let's go to our Asia business hub, where Sharanjit Leyl

0:05:46 > 0:05:47is following the story.

0:05:47 > 0:05:52Interesting, this one. SoftBank constantly buying bits of this and

0:05:52 > 0:05:57that. Tell us about this latest investment in Uber.That's right,

0:05:57 > 0:06:01Sally. Lots of speculation has been swirling about that some sort of $1

0:06:01 > 0:06:04billion deal could be made, but financial details of the investment

0:06:04 > 0:06:11have not yet been disclosed, as yet, and what it could be is potentially

0:06:11 > 0:06:15one of the largest private start-up deals ever. Now, so far we have got

0:06:15 > 0:06:20a statement from Uber saying they have entered into agreement with a

0:06:20 > 0:06:23consortium led by SoftBank, and that this would essentially help fuel

0:06:23 > 0:06:28investments in the elegy and their continued expansion at home, as well

0:06:28 > 0:06:32as abroad, while strengthening corporate governance. Those last two

0:06:32 > 0:06:36words, corporate governance, that is key because it alludes to the many

0:06:36 > 0:06:39problems Uber has had over leadership turmoil, executive

0:06:39 > 0:06:43departures, sexual harassment claims. The fact that venture

0:06:43 > 0:06:51capital firm Benchmark has an outstanding lawsuit against the

0:06:51 > 0:06:56founder. We will be watching this very closely.Thank you very much.

0:06:56 > 0:06:59It is Dubai air show this week, one of the world's biggest

0:07:00 > 0:07:01gatherings of airlines and aircraft manufacturers.

0:07:01 > 0:07:04Bombardier has used the event to challenge the high tariffs

0:07:04 > 0:07:07imposed by the US on imports of its new CSeries passenger jets.

0:07:07 > 0:07:15Jeremy Howell reports from Dubai.

0:07:16 > 0:07:22The Dubai airshow is a global shop window for dozens of new aircraft.

0:07:22 > 0:07:28Few have hit the headlines more this year than the CSeries, a range of

0:07:28 > 0:07:31narrowbodied jets from Canada's Bombardier. The Trump administration

0:07:31 > 0:07:38has slapped a 300% tariff on these claims, saying that Bombardier took

0:07:38 > 0:07:42state aid from Canada to develop them, and that put it in an unfair

0:07:42 > 0:07:49advantage over American rivals like Boeing. At the Dubai airshow,

0:07:49 > 0:07:54Bombardier said it is determined to challenge Boeing's lobbying.Boeing

0:07:54 > 0:07:59does not have a 100 seater to compete with the CSeries, does not

0:07:59 > 0:08:02produce that product. We are not invited to the table to compete,

0:08:02 > 0:08:06because they don't have a product. So it will be very challenging for

0:08:06 > 0:08:11them to demonstrate how they are damaged in this.Not in a bid to woo

0:08:11 > 0:08:15American buyers, Bombardier has said some of the aircraft's components

0:08:15 > 0:08:23will be made in the USA.We will invest in Mobile, Alabama, that is

0:08:23 > 0:08:28about 2000 jobs as well. So for the CSeries programme and the ebb last

0:08:28 > 0:08:33partnership, it is good for the US and Canada because it strengthens

0:08:33 > 0:08:37the programme -- Airbus. For us, I think the US production line does a

0:08:37 > 0:08:41great job of bringing benefit to a lot of different constituents, and

0:08:41 > 0:08:44certainly for the US customers who are interested in the Accra.

0:08:44 > 0:08:48Bombardier wants to join Boeing and Airbus in the major league of

0:08:48 > 0:08:54passenger aircraft manufacturers. The success of the CSeries at the

0:08:54 > 0:08:58Dubai airshow and beyond will be a deciding factor in whether it can do

0:08:58 > 0:08:59so.

0:08:59 > 0:09:02Now let's brief you some other business stories: Boeing has

0:09:02 > 0:09:05snatched up a dream of a deal from its rival Airbus

0:09:05 > 0:09:06at the Dubai air show.

0:09:06 > 0:09:09Emirates has placed a preliminary order for 40 of their 787

0:09:09 > 0:09:12Dreamliners, in a deal worth about $15 billion.

0:09:12 > 0:09:14That is a blow to Airbus, who were expecting a deal

0:09:15 > 0:09:21of their own.

0:09:21 > 0:09:24The numbers are in from the world's biggest online shopping event,

0:09:24 > 0:09:26Singles Day.

0:09:26 > 0:09:29Chinese internet giant Alibaba raked in a whopping $25 billion on 11

0:09:30 > 0:09:32November.

0:09:33 > 0:09:36Last year, Alibaba sales hit a record $18 billion in 24 hours,

0:09:36 > 0:09:44which was equivalent to the entire economic output of Cambodia.

0:09:44 > 0:09:47Bitcoin fell to as low as $5,555 on Sunday,

0:09:47 > 0:09:50logging a weekly fall of 22%, its biggest since early July.

0:09:50 > 0:09:53One reason is that some traders are dumping it for a clone called

0:09:53 > 0:09:54Bitcoin Cash.

0:09:54 > 0:09:58The digital currency has now fallen over 29% from a record high it

0:09:58 > 0:10:22touched on Wednesday.

0:10:22 > 0:10:27If Bitcoin be dazzles you, there are lots of explainers on our website to

0:10:27 > 0:10:31tell you what it is all about.

0:10:31 > 0:10:34And now, what is trending in the business news this morning?

0:10:34 > 0:10:36The Financial Times reports that the pound drops in Asian

0:10:37 > 0:10:40trading, after reports of letter of no confidence in PM Theresa May.

0:10:40 > 0:10:43This story from the Times - a plan to cut congestion

0:10:43 > 0:10:45on motorways will include installing traffic lights on busy routes.

0:10:46 > 0:10:47Wonder how that will speed up things.

0:10:47 > 0:10:51And videogame equipment maker Razer jumps as much as 41.5% in Hong Kong

0:10:51 > 0:10:52debut, according to Bloomberg.

0:10:52 > 0:10:55And don't forget, let us know what you are spotting online.

0:10:55 > 0:11:03Use the hashtag #BBCTheBriefing.