17/07/2017 Outside Source


17/07/2017

Ros Atkins with an innovative take on the latest global stories.


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Hello, I'm Ros Atkins, this is Outside Source.

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The UK is outlining four key areas including citizens rights -

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not for the first time, the EU is asking for one thing.

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We need to examine and compare our respective positions in order to

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make good progress. was behind a hack on Qatari state

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media that precipitated Completely untrue and through our

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Washington embassy we refuted them. Russia is demanding that two

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of its diplomatic compounds And if you want to get in touch on

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any of the stories we're covering - Round two of the Brexit talks. The

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chief negotiators were both there. Michel Barnier for the EU and David

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Davis for the UK. At the end of the first day of talks, they gave a

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press conference. Let's begin with the EU's side. We need to examine

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and compare our respective positions in order to make good progress. As

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you know, our negotiating groups will work on citizens' rights and

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the financial settlement and other separation issues. Our coordinators

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will engage in apolitical dialogue on Ireland. And they will work on

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enforcement of the Article 50 agreement. Next, David Davis. We are

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now getting into the substance of the matter. As you have heard, there

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are four categories. The issue of citizens' rights, finance,

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separation issues and of course separately, Northern Ireland. It is

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incredibly important that we make good progress. We will identify the

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differences so that we can deal with them and identify similarities so

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that we can reinforce those. Now we have to get down to work and make

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this a successful negotiation. You may have seen this picture being

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shared a lot. Michel Barnier and colleagues on the left and David

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Davis and colleagues on the right. People pointing out that the EU team

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have more papers. Pro Brexit people say that it was a photo opportunity

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and he didn't need to bring in papers, typical EU for

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overcompensating. Let's bring ourselves up-to-date.

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Here is Anna Fleming in Brussels. -- Alan Fleming.

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The first day of negotiations has wrapped up. David Davis left the

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city quite early this morning, leaving most of the work to his

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office shelves. They have been rattling over the three priority

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areas set by the EU. They are citizens' rights, the rights of

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nationals living in Britain and British people living elsewhere in

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the EU. And the financial settlement, how do you calculate how

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much money the UK owes EU as a result of financial commitments made

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when it was a member. And the big issue of the Northern Irish border

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which will become an external frontier of the EU. That will run

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throughout the talks as a big issue. No white smoke from the officials

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taking part today. And next update will be on Thursday when David Davis

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will be back here to have a wrapping up lunch with Michel Barnier and his

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EU counterparts. Then we expect a press conference and the whole thing

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will happen again in August, September and again in October. It

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is only then that the EU will assess whether sufficient progress has been

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made in those priorities use for the advice to go to the other leaders

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that it is time to start the other negotiations about the future trade

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relationship between the UK and the EU.

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We started in Brussels, next to Washington and Moscow. An

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interesting story concerning two Russian diplomatic compounds. The

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Russians don't have access to them at the moment but they would like

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that to change. One of them is in Maryland. A 45 acre retreat on the

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state's Eastern Shore. And the other one a New York mansion on the -- in

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New York. These places are for the use of Russian diplomats but the

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Americans claimed they were being used as buying outposts and they

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seized them. We have heard from Sergei Lavrov the Russian Foreign

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Minister and his position is clear. TRANSLATION:

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It is daylight robbery. They are acting like bandits, taking property

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which belongs to us according to bilateral ratified government. In

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absorbed into the principal, what is absorbed into the principal, what is

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mine is mine, what I have, we will share. -- what you have, we will

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share. Moscow has been dropping not so

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subtle hints that it may be about to expel lots of American diplomats and

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close down a couple of American diplomatic compounds in Moscow. Why?

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Because last year, resident Obama did something similar, he ordered

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diplomats out of the country and close compounds, his reaction to

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Russian cyber attacks aimed to on influencing the outcome of the

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election in America. Russia cried foul and accused America of

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violating international law but at the time of the Kremlin did not

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retaliate. Resident Peter knew that President Obama would be on the way

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out and a new man would be there. Donald Trump. So we decided not to

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act immediately, to give Donald trump the opportunity to resolve

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this. If you cannot do this, we have to do something. Nothing personal,

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just business. This is not about Mr Trump. This about tradition -- this

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is about traditions. What is frustrating the Russians is that

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after six months in the White House, President Trump, who has a going to

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transform relations, has not returned the compounds. But

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President Trump faces a dilemma with alleged links between Russia and his

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team, which only the compounds would cause problems. But Russia will

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retaliate and this could end his hopes of a better relationship with

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Russia. Barbara Plett usher is with us. To

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what degree is this down to Donald Trump? He could reverse the

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decision. At this point, Congress is looking at legislation which would

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require a review if he wanted to return any sections. Legally and

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technically he could do it. Politically it is difficult because

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the environment here is toxic when it comes to Russia and gets more

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toxic all the time. There is the ongoing investigation into the

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allegations that Russia meddled in the election and possible collusion

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with the Donald Trump campaign. That will start up again with the

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allegation that Donald Trump Junior had joined up to talk about Hillary

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Clinton. It is the gift that keeps on giving and makes it harder for

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the administration to make any concessions to the Russians. Even

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the meeting that he had with Putin which was presented as pleasant, he

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tried to act as if he had been hard on Mr Putin when he came back. Are

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you surprised that the Russians are pushing this Arda? These compounds

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are very nice for relaxation, but they are not that big a deal in the

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scheme of things given what Russia and America normally concern

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themselves with. They have made pretty clear for a long time that

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this is at the top of the agenda when it comes to bilateral

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relations. They did hold off to see if Mr Trump would reverse them that

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they have made the calculation that he isn't able to all that he at

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least need a bit of pressure to force the situation. They are

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talking it up at the moment. Last week, when the State Department

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spokeswoman was asked about this, she said they had heard threats from

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Russian officials before, and they would not respond. Publicly, they

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are taking it in their stride but this is something that the Russians

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want to depress now. Whether that means is, what that means for any

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limited or pragmatic operation they might be able to eke out with the

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Trump administration as opposed to the larger policy apparatus in

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Washington, remains to be seen. What is interesting about this is that

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this informs us about how the Trump- Russia story is starting to affect

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all elements of how Russia operates -- administration operates. Yes, you

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have had congresspeople in the last months say that they are not happy

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with the way policy is going, that they don't trust the Trump

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administration to take steps that need to be taken. That has to do

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with Russia but in some cases other topics. You see Congress pushing

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back. Especially with this legislation to pass more sanctions

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on Russia and do have that clause that allows them to review any steps

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by the White House to roll back any sanctions. The White House is

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pushing against that strongly saying it will harm its ability to find

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areas of cooperation with Russia. Barbara, thank you.

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We will be talking about Jerry Brown in a little while. He is

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California's Governor, who is leading a big push to extend a tax

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plan in California which means that companies who pollute more pay more

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and we will explain how that fits into the Paris climate change

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agreement. Schools in England are to get an

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extra ?1.3 billion a year but the money will have to come from savings

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elsewhere in the education budget. Labour has criticised the proposals

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but the Education Secretary says she is making efficiencies within her

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department to allow more money to reach the front line. What I am

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doing is make my department make some efficiencies so that we can get

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that money to the front line. The alternative is higher taxes or more

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debt. I figured I should be asking my civil servants to make my budget

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work harder and we think we can do that and put that money into the

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front line. Schools have already lost ?2.8 billion and this money is

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only coming on stream next year and schools facing the pinch already. I

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welcome it, but it needs more investment.

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This is an outside source, and hourly story is that second round of

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talks on Brexit have started. Some of the main stories from BBC World

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Service. BBC Vietnamese is reporting that at least one person has died in

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a Tropical Storm Fitow the centre of the unarmed. The woman's room

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collapsed. A Culdrose -- a cargo ship collapsed and there is also

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flooding in Hanoi. A former state governor of India --

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in India is excited to become the next head of state.

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And the most unlikely story of the day, China's social media sensors

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are blocking references to win a deeply because the cartoon character

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has been compared to President G. The UAE has been accused of being

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behind a key incident that helped sparklers hold rift between Casar

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and its neighbours. Let's go back to me, these inflammatory posts which

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supposedly appeared on the Qatar website. They claimed at the time

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that they were one not true, that this was a hack. But Saudi Arabia

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and Bahrain and the UAA and Egypt all blocked Qatari media. Then they

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all cut all links with Qatar over its alleged support for terrorism

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and relations with Iran. Today, you get this article in the Washington

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Post. It contains the accusation that US intelligence officials have

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evidence that this was a hack and that the UAE was behind it. The

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Foreign Minister gave Lucy Hawking is a quite different story earlier.

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Completely untrue. And posting comments... Completely untrue. I

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think if you look at the comments, they are very consistent with what

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they have been doing. I am talking about the hack, completely untrue.

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They also said that on the 23rd of May, senior members of your

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government discussed the plan and implementation. The whole story is

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completely untrue. We turned to BBC Arabic for help.

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The UAE Ambassador in Washington denying the involvement of his

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government. The statements for foreign affairs in the UAE also

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denying involvement. We need to know that this was the trigger for the

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crisis. But we go beyond going back to the trigger and finding out if

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the UAE hacks Casar's news agency or not. UAE is asking for International

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Monetary Fund of Qatari media. It may not be in the interest of the

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Gulf monitor key to change Qatar, is ask for changes in the foreign

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policy which is funding extremists in the region. That is not going to

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happen. It is really difficult to predict. In 2014, Casar went to

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Saudi Arabia and there was an agreement that Qatar would stop

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funding certain political factions. Now Saudi Arabia, and Bahrain are

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saying that Qatar did not abide by the agreement. Now Qatar has a

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foreign policy and to change the policy would be extremely big hit

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for them. It is difficult for them to say that they will not be backing

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certain political factions in the region. On the other hand, the Saudi

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and emirates blockaded on Qatar is really harming the interests of the

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state. Can I ask you one question about the alleged hack. When those

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statements came out, did BBC Arabic and other regional media thing, this

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is a strange? Will did it feel within the realms of the possible?

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For BBC Arabic, it seems really strange. I have lived in Qatar for

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15 years, I have friends who work for the state media. I asked them an

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iPhone on the morning of the 23rd of May when Sky News Arabia and another

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channel funded by the United Arab Emirates government and another one

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funded by the Saudi Arabia government had this sudden breaking

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news and sudden coverage for the statements. When I asked my Qatari

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friends who are working, they said they had been hacked and they said

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that from the first moment of the crisis. But the Saudi and emirates

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channels did not even carry the denial of the Qatari government. And

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then the crisis began to roll up onto the stage. If you speak Arabic,

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there is coverage of that story CBBC Arabic .com.

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Let's go to the Korean police -- peninsula. Rain talks are proposed

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in between North and South Korea. The proposed talks could begin as

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early as this Friday, a move seen as a mean end all acts of hostility

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along the military demarcation line. The timing is significant, two weeks

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after Yong Yang tested what experts believe was its first

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intercontinental ballistic missile which could reach the United States.

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It also comes just two months into a new presidency. President Mona has

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said that he would try to reopen talks with the North as part of a

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new dialogue which is different from the past ten years. He keeps the

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pressure up with sanctions and also tries to re-engage. What can we

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expect from the talks? We will see confidence building measures being

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discussed, in particular, the possible seizing of those propaganda

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broadcasts which get lead through loudspeakers across the border. But

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there is the possibility that the capital of been North may also call

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for an end to drills between US and South Korean military. There is also

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a humanitarian aspect. Seoul is looking to reopen the possibility of

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reuniting people from the South and the North who have been separated

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for many decades in many cases. That could be a bone of contention for

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the northern capital. It is still angry with soul because of its

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failure to send back home a number of key defectors.

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We will be following that very closely.

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China's economy is huge, and it is performing above expectations. It

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has grown by 7% in the last three months. There is concern over its

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level of debt. It is 2.5 times the entire economy's yield over one

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year, too large for the comfort of some.

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Analysts have been talking about it for years. Particularly this year

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and even Chinese state media organisations are now talking about

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debt getting out of control. The government has been borrowing money

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off its own people and pouring it into infrastructure projects. The

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return on that money is getting less and the burden of debt is weighing

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more heavily. The authorities know they have to do something about it

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but they need the political backing of the party and a strong economy in

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order to be able to do that. Next, Procter Gamble, a US firm

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worth two -- 20 $3 billion. Consumer goods, that most of us use. There is

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a group of activists investors who despite its huge size, won some

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fundamental changes to the company. Michelle, what would they do if they

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were in charge? They say that they can bring about

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change at a much faster rate. This company's culture is at times

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resistant to doing things differently. This is why this

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activist investor, a billionaire known as Nelson Pelz is trying to

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force the board of Procter Gamble to revamp its business and he is

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pushing to try and get elected to the board of directors. Whether or

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not this will succeed we will have to see, but the company has been

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struggling to increase sales. To give you context as to why this is

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coming about now. Keep us posted. Another farm I want

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to talk about, Netflix. How is that doing? This is the entertainment

:22:55.:23:00.

company reported earnings in the last few minutes. Their reaction to

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the share price is swift, it is up about 9% in the last few minutes.

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The company is exploding in terms of the number of users, subscribers of

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the streaming service. That added 5.2 million. To give you some idea,

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Wall Street was inspecting that figure to be 3 million in a week

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period of the year. The channel is known for content like house of

:23:29.:23:35.

cards, Orange is the new black. What will surprise people is that

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international viewers now account for more than half of Netflix's

:23:39.:23:43.

membership. Clearly, investors liking what they are hearing.

:23:44.:23:47.

Thanks, Michelle talk to you during the week.

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The new series of game of thrones started in the US. The New York

:23:51.:23:58.

Times has estimated that this show generates billions of dollars

:23:59.:24:02.

annually and is costumes and props get attention. The success of the

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show is knocking on to companies that produce the props in India.

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Over six seasons, TV fantasy Game Of Thrones has captured the imagination

:24:22.:24:30.

of millions. But far from the seven kingdoms, the costumes, grand sets

:24:31.:24:35.

and armoury that feature in the throat -- show are serious business

:24:36.:24:41.

for companies in India. And it is not just Game of Thrones. This

:24:42.:24:47.

company supplies props to many Hollywood productions, from the

:24:48.:24:53.

avengers and Gladiator, to the Star Wars franchise. It's only the Indian

:24:54.:24:57.

subcontinent which has the art of hand embroidery. They can't get it

:24:58.:25:01.

in the West. Whether we do embroidery or anything, it is very

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handmade, very period looking. This is the largest factory of its kind

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located in the foothills of the Himalayas. This company makes every

:25:15.:25:22.

type of sword from heavy steel to light titanium. It supplies the

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armies around the world but its salts are not sold commercially in

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India. Domestic business is only 10%. Sometimes it can stretch into

:25:35.:25:42.

30%. But it is mostly seasonal. This army business is not seasonal. These

:25:43.:25:48.

are the details that make the story come alive on the big screen. And it

:25:49.:25:52.

means more business on the work floor here.

:25:53.:26:00.

I be back in a couple of minutes. -- I will be back.

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I wanted to update you on a number of stories that

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