Browse content similar to 01/07/2016. Check below for episodes and series from the same categories and more!
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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 | :00:00. | :00:22. | |
UK farmers meet to discuss the post-Brexit future. | :00:23. | :00:28. | |
Plus, the Brexit bulls keep running - global stocks surge again | :00:29. | :00:31. | |
as the Bank of England hints at stimulus measures. | :00:32. | :00:37. | |
Also in the programme: The boss of oil giant Shell tells us | :00:38. | :00:46. | |
As people here in the UK and the rest of the world wait | :00:47. | :01:05. | |
to find out what what a post-Brexit Britain might look like, | :01:06. | :01:08. | |
not to mention who will be leading it, there is one group today | :01:09. | :01:11. | |
Later, the National Farmers Union, which represents farmers in England | :01:12. | :01:15. | |
and Wales, holds a special meeting to try and figure out how people | :01:16. | :01:18. | |
who work in agriculture will be affected by a departure from the EU. | :01:19. | :01:21. | |
While the NFU itself believed staying in was the safest bet, | :01:22. | :01:25. | |
many UK farmers voted Leave and the industry was | :01:26. | :01:28. | |
Let's take a look at some of the issues now facing farmers. | :01:29. | :01:33. | |
The first is access to the European market. | :01:34. | :01:35. | |
Over the past five years almost two thirds of Britain's farm exports | :01:36. | :01:38. | |
went to the EU, according to Government figures, | :01:39. | :01:44. | |
with just over a third to the rest of the world. | :01:45. | :01:47. | |
So the terms of trade will be very important. | :01:48. | :01:50. | |
Then there's the question of EU subsidies. | :01:51. | :01:57. | |
UK farmers get an average of around ?17,000 a year per farm in subsidies | :01:58. | :02:00. | |
Those subsidies make up more than HALF the income | :02:01. | :02:08. | |
of the average farm, according to the NFU. | :02:09. | :02:12. | |
And there's the question of all the farm EU workers over | :02:13. | :02:15. | |
UK farms rely heavily on them, especially at harvest time | :02:16. | :02:18. | |
when thousands more come from Eastern Europe | :02:19. | :02:20. | |
These were all concerns that farmers voiced to the BBC in the run up | :02:21. | :02:37. | |
For the children's future we should take things back in hand. Make alloy | :02:38. | :02:45. | |
and rules and regulations relevant to this country, for our benefit. -- | :02:46. | :02:56. | |
make our own. It is the huge risks to any horticultural business, | :02:57. | :02:58. | |
whether that be fruit, horticultural plants or vegetables. The whole | :02:59. | :03:04. | |
industry relies on this labour coming into the country. I am | :03:05. | :03:12. | |
prepared to give up what I think the subsidies are worth and it is not | :03:13. | :03:17. | |
worth its face value. If we don't have any subsidy at all I believe | :03:18. | :03:20. | |
our costs will come down, land values will public down, rent will | :03:21. | :03:25. | |
certainly come down. -- probably come down. I think it would be | :03:26. | :03:30. | |
scaremongering to suggest that we won't be able to trade with the EU. | :03:31. | :03:34. | |
Obviously a trade deal will be negotiated. But it is very fussy. We | :03:35. | :03:39. | |
don't know how long that trade deal will take to negotiate. What's going | :03:40. | :03:43. | |
to happen in the interim? There are far too many unknowns. There are | :03:44. | :03:46. | |
many unknowns, that's for sure. I enjoyed by the president of the | :03:47. | :03:53. | |
National Farmers Union. Good morning and thanks for coming in. There are | :03:54. | :03:58. | |
a lot of unknowns and the key thing that you need to know is who will be | :03:59. | :04:03. | |
Prime Minister and what the Cabinet will be that follows, and therefore | :04:04. | :04:09. | |
who was in charge of farming. Who is in the Cabinet and who is PM will be | :04:10. | :04:13. | |
extremely important, but all I would say to the incoming Prime Minister | :04:14. | :04:17. | |
and to their government is that farming is so important to the | :04:18. | :04:20. | |
nation. It feeds the nation, it is the bedrock of producing ingredients | :04:21. | :04:26. | |
to the food and drink industry, and industry worth ?108 billion to the | :04:27. | :04:31. | |
UK economy. It employs 3.9 million people. So it is so important that | :04:32. | :04:38. | |
the new government delivers a competitive agricultural policy, | :04:39. | :04:44. | |
that farming can actually the profitable, it can be competitive | :04:45. | :04:49. | |
and we can keep feeding the nation as our consumers demanded. There is | :04:50. | :04:54. | |
so much to discuss. We've highlighted some of the key issues. | :04:55. | :04:59. | |
In terms of the EU subsidies, some ?17,000 a year to a British farmer, | :05:00. | :05:04. | |
that of course will stay in place for some two years, it won't go away | :05:05. | :05:09. | |
immediately. But are you looking for a UK government to replace that? | :05:10. | :05:14. | |
Obviously we have the reassurance from the European Union agricultural | :05:15. | :05:16. | |
Commissioner that the existing support stays in place, but the | :05:17. | :05:21. | |
important message to the UK government will be that British | :05:22. | :05:24. | |
farmers must not be disadvantaged from their other competitors and our | :05:25. | :05:32. | |
competitors will be in France, Holland, Germany. If we are to have | :05:33. | :05:37. | |
a modern and efficient, resilient, profitable industry, then UK farmers | :05:38. | :05:43. | |
must not be disadvantaged. Does that mean each farmer will need help from | :05:44. | :05:50. | |
the UK government? A majority of countries across the globe support | :05:51. | :05:53. | |
their farming. As long as UK farming is not disadvantaged from its | :05:54. | :05:59. | |
competitors, then British farmers can meet the cost. But if European | :06:00. | :06:06. | |
competitors will receive support, ?20 up to ?40 per acre, and we | :06:07. | :06:09. | |
receive little, then it is difficult to compete and create that | :06:10. | :06:12. | |
efficient, competitive industry going forward. The trade | :06:13. | :06:17. | |
negotiations will be key as well, for farmers. Most of our goods are | :06:18. | :06:22. | |
exported to Europe. If tariffs are slapped on those goods or any kind | :06:23. | :06:26. | |
of scenario, that could have a big impact, wouldn't it? It is a major | :06:27. | :06:31. | |
concern. Through these negotiations should be and up with import tariffs | :06:32. | :06:37. | |
on the products that we export to Europe, we could be importing food | :06:38. | :06:41. | |
to other parts of the world with no import tariffs into the UK and food | :06:42. | :06:45. | |
that may not be produced to the same standards that UK farmers produce at | :06:46. | :06:49. | |
present, then that would make us extremely uncompetitive and it would | :06:50. | :06:55. | |
not help British farmers to be competitive in the long-term. We | :06:56. | :07:01. | |
appreciate your time this morning. Of course we will keep across how | :07:02. | :07:04. | |
you get on and farmers in Europe are of course concerned about the | :07:05. | :07:08. | |
situation. Thank you for your time. That is one industry in the UK that | :07:09. | :07:12. | |
is very worried. Let's stay with Brexit. | :07:13. | :07:15. | |
bosses of businesses both large and small are all trying to work out | :07:16. | :07:19. | |
The BBC has been speaking to Ben van Beurden, the boss | :07:20. | :07:23. | |
He was attending the company's annual fuel economy competition, | :07:24. | :07:28. | |
He told us he's very concerned that the UK retains access | :07:29. | :07:31. | |
I hope the relationship that will be defined by the governments of the UK | :07:32. | :07:46. | |
and the EU will be such that they will still give us access to the | :07:47. | :07:50. | |
single market, ideally free movement of people as well, for a company | :07:51. | :07:56. | |
like us that's important. We are still large exporters in two | :07:57. | :07:59. | |
different countries. But it would be speculative to say what will happen. | :08:00. | :08:06. | |
We will still come to eat our investment programmes that we have | :08:07. | :08:08. | |
in the UK and still provide energy to our customers in the UK, we will | :08:09. | :08:16. | |
still recruit people in the UK. In the long run what will happen, we | :08:17. | :08:19. | |
will have to wait and see. That is what most company bosses are | :08:20. | :08:26. | |
telling us. Short-term is manageable, but what about the | :08:27. | :08:31. | |
long-term? There's much uncertainty. Markets are not too concerned about | :08:32. | :08:34. | |
that. The optimism is still very much in due. Global shares have been | :08:35. | :08:39. | |
going up again for a third straight session. The FTSE 100 is surging, | :08:40. | :08:43. | |
although it was a wobbly start to business on Thursday. Let's have a | :08:44. | :08:45. | |
look at Let's talk to Rico | :08:46. | :08:46. | |
Hizon, in Singapore. It is pretty much the same | :08:47. | :09:22. | |
conversation as we had yesterday, but it is encouraging markets and | :09:23. | :09:24. | |
not getting pessimistic again today. Absolutely. The gains are continuing | :09:25. | :09:31. | |
for a fourth day here in the region, with investors remaining in a buying | :09:32. | :09:37. | |
mood. Amid low interest rates and of course global markets, recovering | :09:38. | :09:40. | |
from the Brexit shock of Japan, South Korea, Australia, China and | :09:41. | :09:46. | |
south-east Asian markets, all in positive territory. And with the | :09:47. | :09:49. | |
gains today Asia has recovered nearly all of their wrecks at | :09:50. | :09:53. | |
losses. Let's take a look in particular at the Chinese markets. | :09:54. | :10:00. | |
The gains are being capped. Growth in the manufacturing sector has | :10:01. | :10:06. | |
deteriorated again. The manufacturers' index came in lower | :10:07. | :10:09. | |
than expected and policymakers in Beijing are continuing to battle to | :10:10. | :10:13. | |
revive growth, which has slowed to a 25 year low last year, a little to | :10:14. | :10:18. | |
show for their effort. Over the past week markets were all over the | :10:19. | :10:22. | |
place, creeping confidently up and then down, but gradually creeping up | :10:23. | :10:29. | |
again. Nice to see you. That is all from World Business Report for the | :10:30. | :10:33. | |
time being. 20 more business stories to discuss in The Papers in a few | :10:34. | :10:36. | |
minutes. -- plenty more. See you then. | :10:37. | :10:38. |