01/07/2016

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:00:00. > :00:00.Now for the latest financial news with Sally and World Business

:00:00. > :00:22.Can Britain plough its own furrow, or is there a bitter

:00:23. > :00:28.UK farmers meet to discuss the post-Brexit future.

:00:29. > :00:31.Plus, the Brexit bulls keep running - global stocks surge again

:00:32. > :00:37.as the Bank of England hints at stimulus measures.

:00:38. > :00:46.Also in the programme: The boss of oil giant Shell tells us

:00:47. > :01:05.As people here in the UK and the rest of the world wait

:01:06. > :01:08.to find out what what a post-Brexit Britain might look like,

:01:09. > :01:11.not to mention who will be leading it, there is one group today

:01:12. > :01:15.Later, the National Farmers Union, which represents farmers in England

:01:16. > :01:18.and Wales, holds a special meeting to try and figure out how people

:01:19. > :01:21.who work in agriculture will be affected by a departure from the EU.

:01:22. > :01:25.While the NFU itself believed staying in was the safest bet,

:01:26. > :01:28.many UK farmers voted Leave and the industry was

:01:29. > :01:33.Let's take a look at some of the issues now facing farmers.

:01:34. > :01:35.The first is access to the European market.

:01:36. > :01:38.Over the past five years almost two thirds of Britain's farm exports

:01:39. > :01:44.went to the EU, according to Government figures,

:01:45. > :01:47.with just over a third to the rest of the world.

:01:48. > :01:50.So the terms of trade will be very important.

:01:51. > :01:57.Then there's the question of EU subsidies.

:01:58. > :02:00.UK farmers get an average of around ?17,000 a year per farm in subsidies

:02:01. > :02:08.Those subsidies make up more than HALF the income

:02:09. > :02:12.of the average farm, according to the NFU.

:02:13. > :02:15.And there's the question of all the farm EU workers over

:02:16. > :02:18.UK farms rely heavily on them, especially at harvest time

:02:19. > :02:20.when thousands more come from Eastern Europe

:02:21. > :02:37.These were all concerns that farmers voiced to the BBC in the run up

:02:38. > :02:45.For the children's future we should take things back in hand. Make alloy

:02:46. > :02:56.and rules and regulations relevant to this country, for our benefit. --

:02:57. > :02:58.make our own. It is the huge risks to any horticultural business,

:02:59. > :03:04.whether that be fruit, horticultural plants or vegetables. The whole

:03:05. > :03:12.industry relies on this labour coming into the country. I am

:03:13. > :03:17.prepared to give up what I think the subsidies are worth and it is not

:03:18. > :03:20.worth its face value. If we don't have any subsidy at all I believe

:03:21. > :03:25.our costs will come down, land values will public down, rent will

:03:26. > :03:30.certainly come down. -- probably come down. I think it would be

:03:31. > :03:34.scaremongering to suggest that we won't be able to trade with the EU.

:03:35. > :03:39.Obviously a trade deal will be negotiated. But it is very fussy. We

:03:40. > :03:43.don't know how long that trade deal will take to negotiate. What's going

:03:44. > :03:46.to happen in the interim? There are far too many unknowns. There are

:03:47. > :03:53.many unknowns, that's for sure. I enjoyed by the president of the

:03:54. > :03:58.National Farmers Union. Good morning and thanks for coming in. There are

:03:59. > :04:03.a lot of unknowns and the key thing that you need to know is who will be

:04:04. > :04:09.Prime Minister and what the Cabinet will be that follows, and therefore

:04:10. > :04:13.who was in charge of farming. Who is in the Cabinet and who is PM will be

:04:14. > :04:17.extremely important, but all I would say to the incoming Prime Minister

:04:18. > :04:20.and to their government is that farming is so important to the

:04:21. > :04:26.nation. It feeds the nation, it is the bedrock of producing ingredients

:04:27. > :04:31.to the food and drink industry, and industry worth ?108 billion to the

:04:32. > :04:38.UK economy. It employs 3.9 million people. So it is so important that

:04:39. > :04:44.the new government delivers a competitive agricultural policy,

:04:45. > :04:49.that farming can actually the profitable, it can be competitive

:04:50. > :04:54.and we can keep feeding the nation as our consumers demanded. There is

:04:55. > :04:59.so much to discuss. We've highlighted some of the key issues.

:05:00. > :05:04.In terms of the EU subsidies, some ?17,000 a year to a British farmer,

:05:05. > :05:09.that of course will stay in place for some two years, it won't go away

:05:10. > :05:14.immediately. But are you looking for a UK government to replace that?

:05:15. > :05:16.Obviously we have the reassurance from the European Union agricultural

:05:17. > :05:21.Commissioner that the existing support stays in place, but the

:05:22. > :05:24.important message to the UK government will be that British

:05:25. > :05:32.farmers must not be disadvantaged from their other competitors and our

:05:33. > :05:37.competitors will be in France, Holland, Germany. If we are to have

:05:38. > :05:43.a modern and efficient, resilient, profitable industry, then UK farmers

:05:44. > :05:50.must not be disadvantaged. Does that mean each farmer will need help from

:05:51. > :05:53.the UK government? A majority of countries across the globe support

:05:54. > :05:59.their farming. As long as UK farming is not disadvantaged from its

:06:00. > :06:06.competitors, then British farmers can meet the cost. But if European

:06:07. > :06:09.competitors will receive support, ?20 up to ?40 per acre, and we

:06:10. > :06:12.receive little, then it is difficult to compete and create that

:06:13. > :06:17.efficient, competitive industry going forward. The trade

:06:18. > :06:22.negotiations will be key as well, for farmers. Most of our goods are

:06:23. > :06:26.exported to Europe. If tariffs are slapped on those goods or any kind

:06:27. > :06:31.of scenario, that could have a big impact, wouldn't it? It is a major

:06:32. > :06:37.concern. Through these negotiations should be and up with import tariffs

:06:38. > :06:41.on the products that we export to Europe, we could be importing food

:06:42. > :06:45.to other parts of the world with no import tariffs into the UK and food

:06:46. > :06:49.that may not be produced to the same standards that UK farmers produce at

:06:50. > :06:55.present, then that would make us extremely uncompetitive and it would

:06:56. > :07:01.not help British farmers to be competitive in the long-term. We

:07:02. > :07:04.appreciate your time this morning. Of course we will keep across how

:07:05. > :07:08.you get on and farmers in Europe are of course concerned about the

:07:09. > :07:12.situation. Thank you for your time. That is one industry in the UK that

:07:13. > :07:15.is very worried. Let's stay with Brexit.

:07:16. > :07:19.bosses of businesses both large and small are all trying to work out

:07:20. > :07:23.The BBC has been speaking to Ben van Beurden, the boss

:07:24. > :07:28.He was attending the company's annual fuel economy competition,

:07:29. > :07:31.He told us he's very concerned that the UK retains access

:07:32. > :07:46.I hope the relationship that will be defined by the governments of the UK

:07:47. > :07:50.and the EU will be such that they will still give us access to the

:07:51. > :07:56.single market, ideally free movement of people as well, for a company

:07:57. > :07:59.like us that's important. We are still large exporters in two

:08:00. > :08:06.different countries. But it would be speculative to say what will happen.

:08:07. > :08:08.We will still come to eat our investment programmes that we have

:08:09. > :08:16.in the UK and still provide energy to our customers in the UK, we will

:08:17. > :08:19.still recruit people in the UK. In the long run what will happen, we

:08:20. > :08:26.will have to wait and see. That is what most company bosses are

:08:27. > :08:31.telling us. Short-term is manageable, but what about the

:08:32. > :08:34.long-term? There's much uncertainty. Markets are not too concerned about

:08:35. > :08:39.that. The optimism is still very much in due. Global shares have been

:08:40. > :08:43.going up again for a third straight session. The FTSE 100 is surging,

:08:44. > :08:45.although it was a wobbly start to business on Thursday. Let's have a

:08:46. > :08:46.look at Let's talk to Rico

:08:47. > :09:22.Hizon, in Singapore. It is pretty much the same

:09:23. > :09:24.conversation as we had yesterday, but it is encouraging markets and

:09:25. > :09:31.not getting pessimistic again today. Absolutely. The gains are continuing

:09:32. > :09:37.for a fourth day here in the region, with investors remaining in a buying

:09:38. > :09:40.mood. Amid low interest rates and of course global markets, recovering

:09:41. > :09:46.from the Brexit shock of Japan, South Korea, Australia, China and

:09:47. > :09:49.south-east Asian markets, all in positive territory. And with the

:09:50. > :09:53.gains today Asia has recovered nearly all of their wrecks at

:09:54. > :10:00.losses. Let's take a look in particular at the Chinese markets.

:10:01. > :10:06.The gains are being capped. Growth in the manufacturing sector has

:10:07. > :10:09.deteriorated again. The manufacturers' index came in lower

:10:10. > :10:13.than expected and policymakers in Beijing are continuing to battle to

:10:14. > :10:18.revive growth, which has slowed to a 25 year low last year, a little to

:10:19. > :10:22.show for their effort. Over the past week markets were all over the

:10:23. > :10:29.place, creeping confidently up and then down, but gradually creeping up

:10:30. > :10:33.again. Nice to see you. That is all from World Business Report for the

:10:34. > :10:36.time being. 20 more business stories to discuss in The Papers in a few

:10:37. > :10:38.minutes. -- plenty more. See you then.