17/07/2017 Outside Source

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

The UK is outlining four key areas including citizens rights -

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

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

make good progress. was behind a hack on Qatari state

media that precipitated Completely untrue and through our

Washington embassy we refuted them. Russia is demanding that two

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

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

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

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

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

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

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

the financial settlement and other separation issues. Our coordinators

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

office shelves. They have been rattling over the three priority

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

nationals living in Britain and British people living elsewhere in

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

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

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

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

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

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

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

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

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

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

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

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

relationship between the UK and the EU.

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

interesting story concerning two Russian diplomatic compounds. The

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

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

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

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

Americans claimed they were being used as buying outposts and they

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

Minister and his position is clear. TRANSLATION:

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

which belongs to us according to bilateral ratified government. In

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

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

share. Moscow has been dropping not so

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

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

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

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

Russian cyber attacks aimed to on influencing the outcome of the

election in America. Russia cried foul and accused America of

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

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

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

act immediately, to give Donald trump the opportunity to resolve

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

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

is about traditions. What is frustrating the Russians is that

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

transform relations, has not returned the compounds. But

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

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

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

Russia. Barbara Plett usher is with us. To

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

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

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

technically he could do it. Politically it is difficult because

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

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

allegations that Russia meddled in the election and possible collusion

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

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

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

the administration to make any concessions to the Russians. Even

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

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

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

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

scheme of things given what Russia and America normally concern

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

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

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

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

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

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

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

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

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

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

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

Trump administration as opposed to the larger policy apparatus in

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

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

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

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

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

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

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

back. Especially with this legislation to pass more sanctions

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

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

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

areas of cooperation with Russia. Barbara, thank you.

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

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

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

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

agreement. Schools in England are to get an

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

elsewhere in the education budget. Labour has criticised the proposals

but the Education Secretary says she is making efficiencies within her

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

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

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

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

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

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

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

welcome it, but it needs more investment.

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

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

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

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

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

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

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

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

are blocking references to win a deeply because the cartoon character

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

behind a key incident that helped sparklers hold rift between Casar

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

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

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

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

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

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

Post. It contains the accusation that US intelligence officials have

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

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

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

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

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

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

government discussed the plan and implementation. The whole story is

completely untrue. We turned to BBC Arabic for help.

The UAE Ambassador in Washington denying the involvement of his

government. The statements for foreign affairs in the UAE also

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

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

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

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

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

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

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

Saudi Arabia and there was an agreement that Qatar would stop

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

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

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

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

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

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

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

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

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

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

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

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

channel funded by the United Arab Emirates government and another one

funded by the Saudi Arabia government had this sudden breaking

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

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

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

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

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

there is coverage of that story CBBC Arabic .com.

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

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

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

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

after Yong Yang tested what experts believe was its first

intercontinental ballistic missile which could reach the United States.

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

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

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

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

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

discussed, in particular, the possible seizing of those propaganda

broadcasts which get lead through loudspeakers across the border. But

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

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

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

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

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

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

failure to send back home a number of key defectors.

We will be following that very closely.

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

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

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

year, too large for the comfort of some.

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

and even Chinese state media organisations are now talking about

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

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

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

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

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

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

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

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

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

were in charge? They say that they can bring about

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

resistant to doing things differently. This is why this

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

membership. Clearly, investors liking what they are hearing.

Thanks, Michelle talk to you during the week.

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

Times has estimated that this show generates billions of dollars

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

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

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

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

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

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

company supplies props to many Hollywood productions, from the

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

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

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

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

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

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

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

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

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

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

means more business on the work floor here.

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

I wanted to update you on a number of stories that