13/11/2017 Business Briefing


13/11/2017

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This is Business Briefing.

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I'm Sally Bundock.

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Brexit summit at Downing Street.

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The UK Prime Minister meets European

business leaders to hear their views

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on how to make a smooth separation

from the European Union.

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And a new passenger on board.

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Ride-hailing firm Uber strikes

a huge investment deal with Japan's

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SoftBank.

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These other markets across the

board. That is Friday's close in the

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United States but in Asia, a mixed

day emerging as they take stock of

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the massive rallies we saw in Asia

last week.

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the massive rallies we saw in Asia

last week.

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As Britain's departure

from the European Union draws ever

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closer, there is growing scrutiny

over future trade links

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between the two sides.

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So, for the first time,

Prime Minister Theresa May

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will welcome European business

leaders to Downing Street later.

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She wants their input on how

to minimise disruption

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after March 2019.

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15 leading business organisations

from across the continent,

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including experts from the

Confederation of British Industry

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and Institute of Directors,

will be there.

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Last year, the UK exchanged

about $730 billion worth of goods

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and services with the

other 27 EU countries.

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That amounts to 43%

of total UK exports.

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The export of cars and chemicals

take the biggest share.

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Mrs May had a bit of a torrid

weekend, with some of her party

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allegedly preparing for a vote of no

confidence in the Prime Minister.

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But her Defence Secretary

came out in her defence,

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and said that, with Brexit,

she is towing a straight line.

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The Prime Minister in her Florence

speech made absolutely clear the

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generous offer that reason is

putting forward. We want to have a

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cooperative relationship with

Europe, but she has always made it

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absolutely clear that actually we

have to get the right deal for

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Britain, and that is what she will

deliver.

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With me is Thomas Cole,

head of policy at Open Britain.

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Good morning. That is one view, of

course, her ministers rallying

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around her. But in terms of the day

ahead she has quite a difficult

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audience, hasn't she? A tough offer

to convince these business leaders

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negotiations are going well.

She

certainly has, we heard in your

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opening remarks that the British

chamber of industry will be there

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and a number of key European

players, counterparts in Germany,

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France and Italy. They will want to

hear what is the likelihood of there

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being any breakthroughs on

negotiations and at what point does

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Theresa May think negotiations can

move forward to the future

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arrangement, including the trade

arrangement. At the moment it is not

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looking great. The plan was

originally to have an agreement in

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October, to be able to move forward

at that point. That hasn't happened.

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What we have now is that there

should be an agreement in December,

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when 28 heads of government meet to

discuss negotiations. And things are

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not looking too good so business

leaders will be very concerned about

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what is going to happen in the

short, medium and long-term.

She is

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likely to say to them that she is

looking for a transition agreement

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where will have two years post-

March 2019 to continue trading in

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the way they are now, in order to

get themselves ready for change. Is

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that really likely?

Well, I think on

the one hand the transition is

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clearly needed. Theresa May spelt

out in her Florence speech at the

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end of September that is what she

wanted. That hasn't been translated

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into any official negotiating

position by the British government.

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It is clear that from the EU 27

side, as well as the European

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Parliament, they said it could be

possible. In the case of member

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State Government they said only that

it should be time-limited. So there

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is clearly willingness for that. The

question is is two years long

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enough? It would be the status quo,

so the UK staying in the single

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market and the customs union and if

that were the case and at least

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until March 2021, trade would

continue as it is today. The

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question is what happens after March

2021, and in the period until a new

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trade relationship has been agreed.

It is unlikely that, if you were to

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start trade negotiations after the

December council, early next year,

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that at that point until March 2021,

it may not be enough time to agree

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the future relationship. In many

respects you may actually be longer

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transition period, and I'm not sure

that within Theresa May's government

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she has support for that.

Thank you

very much indeed. Just to say, at

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that discussion in Downing Street,

we have mentioned those attending

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but also Brexit secretary, David

Davis, and the business live page

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will update you on what we here in

terms of how it goes. -- what we

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hear.

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Uber has confirmed to the BBC

that it has entered an agreement

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with Japan's SoftBank over

a potential investment.

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Let's go to our Asia business hub,

where Sharanjit Leyl

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is following the story.

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Interesting, this one. SoftBank

constantly buying bits of this and

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that. Tell us about this latest

investment in Uber.

That's right,

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Sally. Lots of speculation has been

swirling about that some sort of $1

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billion deal could be made, but

financial details of the investment

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have not yet been disclosed, as yet,

and what it could be is potentially

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one of the largest private start-up

deals ever. Now, so far we have got

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a statement from Uber saying they

have entered into agreement with a

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consortium led by SoftBank, and that

this would essentially help fuel

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investments in the elegy and their

continued expansion at home, as well

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as abroad, while strengthening

corporate governance. Those last two

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words, corporate governance, that is

key because it alludes to the many

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problems Uber has had over

leadership turmoil, executive

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departures, sexual harassment

claims. The fact that venture

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capital firm Benchmark has an

outstanding lawsuit against the

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founder. We will be watching this

very closely.

Thank you very much.

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It is Dubai air show this week,

one of the world's biggest

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gatherings of airlines

and aircraft manufacturers.

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Bombardier has used the event

to challenge the high tariffs

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imposed by the US on imports

of its new CSeries passenger jets.

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Jeremy Howell reports from Dubai.

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The Dubai airshow is a global shop

window for dozens of new aircraft.

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Few have hit the headlines more this

year than the CSeries, a range of

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narrowbodied jets from Canada's

Bombardier. The Trump administration

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has slapped a 300% tariff on these

claims, saying that Bombardier took

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state aid from Canada to develop

them, and that put it in an unfair

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advantage over American rivals like

Boeing. At the Dubai airshow,

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Bombardier said it is determined to

challenge Boeing's lobbying.

Boeing

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does not have a 100 seater to

compete with the CSeries, does not

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produce that product. We are not

invited to the table to compete,

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because they don't have a product.

So it will be very challenging for

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them to demonstrate how they are

damaged in this.

Not in a bid to woo

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American buyers, Bombardier has said

some of the aircraft's components

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will be made in the USA.

We will

invest in Mobile, Alabama, that is

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about 2000 jobs as well. So for the

CSeries programme and the ebb last

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partnership, it is good for the US

and Canada because it strengthens

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the programme -- Airbus. For us, I

think the US production line does a

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great job of bringing benefit to a

lot of different constituents, and

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certainly for the US customers who

are interested in the Accra.

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Bombardier wants to join Boeing and

Airbus in the major league of

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passenger aircraft manufacturers.

The success of the CSeries at the

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Dubai airshow and beyond will be a

deciding factor in whether it can do

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so.

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Now let's brief you some other

business stories: Boeing has

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snatched up a dream of a deal

from its rival Airbus

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at the Dubai air show.

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Emirates has placed a preliminary

order for 40 of their 787

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Dreamliners, in a deal

worth about $15 billion.

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That is a blow to Airbus,

who were expecting a deal

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of their own.

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The numbers are in from the world's

biggest online shopping event,

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Singles Day.

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Chinese internet giant Alibaba raked

in a whopping $25 billion on 11

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November.

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Last year, Alibaba sales hit

a record $18 billion in 24 hours,

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which was equivalent to the entire

economic output of Cambodia.

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Bitcoin fell to as low

as $5,555 on Sunday,

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logging a weekly fall of 22%,

its biggest since early July.

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One reason is that some traders

are dumping it for a clone called

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Bitcoin Cash.

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The digital currency has now fallen

over 29% from a record high it

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touched on Wednesday.

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If Bitcoin be dazzles you, there are

lots of explainers on our website to

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tell you what it is all about.

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And now, what is trending

in the business news this morning?

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The Financial Times reports

that the pound drops in Asian

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trading, after reports of letter

of no confidence in PM Theresa May.

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This story from the Times -

a plan to cut congestion

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on motorways will include installing

traffic lights on busy routes.

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Wonder how that will

speed up things.

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And videogame equipment maker Razer

jumps as much as 41.5% in Hong Kong

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debut, according to Bloomberg.

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And don't forget, let us know

what you are spotting online.

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Use the hashtag #BBCTheBriefing.

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