01/07/2016 World Business Report


01/07/2016

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Now for the latest financial news with Sally and World Business

:00:00.:00:00.

Can Britain plough its own furrow, or is there a bitter

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UK farmers meet to discuss the post-Brexit future.

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Plus, the Brexit bulls keep running - global stocks surge again

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as the Bank of England hints at stimulus measures.

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Also in the programme: The boss of oil giant Shell tells us

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As people here in the UK and the rest of the world wait

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to find out what what a post-Brexit Britain might look like,

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not to mention who will be leading it, there is one group today

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Later, the National Farmers Union, which represents farmers in England

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and Wales, holds a special meeting to try and figure out how people

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who work in agriculture will be affected by a departure from the EU.

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While the NFU itself believed staying in was the safest bet,

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many UK farmers voted Leave and the industry was

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Let's take a look at some of the issues now facing farmers.

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The first is access to the European market.

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Over the past five years almost two thirds of Britain's farm exports

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went to the EU, according to Government figures,

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with just over a third to the rest of the world.

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So the terms of trade will be very important.

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Then there's the question of EU subsidies.

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UK farmers get an average of around ?17,000 a year per farm in subsidies

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Those subsidies make up more than HALF the income

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of the average farm, according to the NFU.

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And there's the question of all the farm EU workers over

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UK farms rely heavily on them, especially at harvest time

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when thousands more come from Eastern Europe

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These were all concerns that farmers voiced to the BBC in the run up

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For the children's future we should take things back in hand. Make alloy

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and rules and regulations relevant to this country, for our benefit. --

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make our own. It is the huge risks to any horticultural business,

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whether that be fruit, horticultural plants or vegetables. The whole

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industry relies on this labour coming into the country. I am

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prepared to give up what I think the subsidies are worth and it is not

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worth its face value. If we don't have any subsidy at all I believe

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our costs will come down, land values will public down, rent will

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certainly come down. -- probably come down. I think it would be

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scaremongering to suggest that we won't be able to trade with the EU.

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Obviously a trade deal will be negotiated. But it is very fussy. We

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don't know how long that trade deal will take to negotiate. What's going

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to happen in the interim? There are far too many unknowns. There are

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many unknowns, that's for sure. I enjoyed by the president of the

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National Farmers Union. Good morning and thanks for coming in. There are

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a lot of unknowns and the key thing that you need to know is who will be

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Prime Minister and what the Cabinet will be that follows, and therefore

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who was in charge of farming. Who is in the Cabinet and who is PM will be

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extremely important, but all I would say to the incoming Prime Minister

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and to their government is that farming is so important to the

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nation. It feeds the nation, it is the bedrock of producing ingredients

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to the food and drink industry, and industry worth ?108 billion to the

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UK economy. It employs 3.9 million people. So it is so important that

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the new government delivers a competitive agricultural policy,

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that farming can actually the profitable, it can be competitive

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and we can keep feeding the nation as our consumers demanded. There is

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so much to discuss. We've highlighted some of the key issues.

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In terms of the EU subsidies, some ?17,000 a year to a British farmer,

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that of course will stay in place for some two years, it won't go away

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immediately. But are you looking for a UK government to replace that?

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Obviously we have the reassurance from the European Union agricultural

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Commissioner that the existing support stays in place, but the

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important message to the UK government will be that British

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farmers must not be disadvantaged from their other competitors and our

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competitors will be in France, Holland, Germany. If we are to have

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a modern and efficient, resilient, profitable industry, then UK farmers

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must not be disadvantaged. Does that mean each farmer will need help from

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the UK government? A majority of countries across the globe support

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their farming. As long as UK farming is not disadvantaged from its

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competitors, then British farmers can meet the cost. But if European

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competitors will receive support, ?20 up to ?40 per acre, and we

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receive little, then it is difficult to compete and create that

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efficient, competitive industry going forward. The trade

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negotiations will be key as well, for farmers. Most of our goods are

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exported to Europe. If tariffs are slapped on those goods or any kind

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of scenario, that could have a big impact, wouldn't it? It is a major

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concern. Through these negotiations should be and up with import tariffs

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on the products that we export to Europe, we could be importing food

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to other parts of the world with no import tariffs into the UK and food

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that may not be produced to the same standards that UK farmers produce at

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present, then that would make us extremely uncompetitive and it would

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not help British farmers to be competitive in the long-term. We

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appreciate your time this morning. Of course we will keep across how

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you get on and farmers in Europe are of course concerned about the

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situation. Thank you for your time. That is one industry in the UK that

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is very worried. Let's stay with Brexit.

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bosses of businesses both large and small are all trying to work out

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The BBC has been speaking to Ben van Beurden, the boss

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He was attending the company's annual fuel economy competition,

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He told us he's very concerned that the UK retains access

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I hope the relationship that will be defined by the governments of the UK

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and the EU will be such that they will still give us access to the

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single market, ideally free movement of people as well, for a company

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like us that's important. We are still large exporters in two

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different countries. But it would be speculative to say what will happen.

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We will still come to eat our investment programmes that we have

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in the UK and still provide energy to our customers in the UK, we will

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still recruit people in the UK. In the long run what will happen, we

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will have to wait and see. That is what most company bosses are

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telling us. Short-term is manageable, but what about the

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long-term? There's much uncertainty. Markets are not too concerned about

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that. The optimism is still very much in due. Global shares have been

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going up again for a third straight session. The FTSE 100 is surging,

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although it was a wobbly start to business on Thursday. Let's have a

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look at Let's talk to Rico

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Hizon, in Singapore. It is pretty much the same

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conversation as we had yesterday, but it is encouraging markets and

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not getting pessimistic again today. Absolutely. The gains are continuing

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for a fourth day here in the region, with investors remaining in a buying

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mood. Amid low interest rates and of course global markets, recovering

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from the Brexit shock of Japan, South Korea, Australia, China and

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south-east Asian markets, all in positive territory. And with the

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gains today Asia has recovered nearly all of their wrecks at

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losses. Let's take a look in particular at the Chinese markets.

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The gains are being capped. Growth in the manufacturing sector has

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deteriorated again. The manufacturers' index came in lower

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than expected and policymakers in Beijing are continuing to battle to

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revive growth, which has slowed to a 25 year low last year, a little to

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show for their effort. Over the past week markets were all over the

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place, creeping confidently up and then down, but gradually creeping up

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again. Nice to see you. That is all from World Business Report for the

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time being. 20 more business stories to discuss in The Papers in a few

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minutes. -- plenty more. See you then.

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