16/02/2017 World Business Report


16/02/2017

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Now for the latest financial news with Aaron Heslehurst

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The European Parliament backs a big trade deal with Canada.

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Could it serve as a model for a future British

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Prosecutors in South Korea get another shot at arresting the big

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That bloke in the middle with the suit!

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Good morning, Britain. Hello, world. I am sitting down for once. If this

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is your first time, I have eight minutes to tell you what is going on

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in the business world. After eight years of negotiations,

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the EU parliament has approved a landmark free trade

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deal with Canada. Lawmakers in Strasbourg voted

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in favour of the so-called CETA agreement, which is hoped to add

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billions of dollars both sides Once fully implemented,

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the deal will eliminate 99% of the tariffs between Canada

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and the EU, increase trade by 22.9%, and the European Commission

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estimates that this could increase trade between the two

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by nearly a quarter. Now that the EU Parliament has given

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the green light to the deal, both sides can start

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removing trade barriers. But the agreement goes

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beyond the simple removal of tariffs and calls for further reforms

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which would require ratification That is important to stress. That is

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about, what, 28 EU members, and take out the UK.

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This includes controversial measures such as the creation of a dedicated

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court to settle disputes between governments and investors.

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CETA is Canada's biggest trade deal since the North America Free Trade

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pointed to CETA as a potential model for Brexit once the UK formally

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With me is Allie Renison from the Institute of Directors.

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It is good to happy with at this horrible hour. Many members of the

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European Parliament are patting their backs. They call it Europe's

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most modern ever trade deal. They said EU policy will never be the

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same again. Is this a watershed moment? It is as we have events

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spiralling beyond the control of the EU, like President Trump and anti-

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free trade rhetoric. The deal was not signed. There was the element of

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the Belgium problem in holding up the signature. Summer events have

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conspired to make it a slightly bigger watershed moment than it

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should have been. -- some events. Critics really do not like this.

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They are using terms... They are saying yes to Ceta is a trampling of

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the people, calling it a Trojan horse, and a threat to democracy and

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the rule of law. That is because of the creation of investor state

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dispute. It has greater investor protection. That benefits

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multinational companies. Can you break that down? It allows

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investors, if they set up a huge investment, take for example

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Germany, after Germany decided it did not want nuclear energy any

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more, a Swedish nuclear company sued them saying that it takes away their

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losses and they wanted to recoup them. This is commercial law. It is

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done by investment treaties being incorporated into trade treaties.

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People are finding it for the first time about these investor state

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dispute settlement provisions. They have been going on for 50 years.

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Germany is the biggest critic. That is where it originated in. People

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are coming to grips with something that has been around a long time.

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Some are asking the question, could this be used as a model for British

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- Canadian trade deals? Once they leave the EU. This is certainly a

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model in that it is a trade agreement, but it goes nowhere near

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matching the level of access we have now. 99% of tariffs, but in

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sensitive areas of the agriculture, tariffs were phased out over a long

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time. You would want to go much further with a Brexit deal. I have

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to move on. But I was saying how this goes beyond tariffs. Anything

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else added to the deal has to be approved by 28 other governments,

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right? We are jumping ahead of ourselves. It has been signed but it

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has to be ratified. That is it big thing to do, to get 28 governments

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to agree. You can sometimes need smaller governments within those

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governments to agree as well. Great stuff. Thank you. We appreciate it.

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You can get out of here and warm up. USA and earlier how cold it was. --

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you were saying earlier. For the second time in three weeks,

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a court will decide whether to grant a request to arrest the head

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of South Korea's largest company. A hearing is under way

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where prosecutors will be trying to persuade a judge that there

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is enough evidence to arrest JY Lee, He's a suspect in a bribery

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investigation which could bring down the country's president,

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President Park. Rico Hizon has been

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following the story from our It is great to see you, my friend. A

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lovely day to you. This guy is a big fish. Yes. What are the chances of

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the prosecutors getting this through the judges? Let me tell you, the

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prosecutors are throwing big kitchensink at Jay Y Lee. They have

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expanded charges against him to include bribery, embezzlement,

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hiding assets, and perjury. Prosecutors have focused on Samsung

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Group's relationship with the president of South Korea, accusing

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him of giving $38 million to business organisations backed by Ms

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Park's friend for support of two Samsung companies. But of course,

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all of the parties have denied these accusations, and prosecutors are

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also requested the arrest warrant of the CEO of Samsung Electronics. We

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will find out later today or later tomorrow morning if the arrest

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warrant will be issued against the Chief of Samsung and the head of

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Samsung Electronics. I am waiting with bated breath. Hopefully I will

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talk to you tomorrow if you are in. I am in, are you? I am. See you

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soon. Let us talk about Lufthansa. The boss of Lufthansa says the firm

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has made great progress The German carrier is under fierce

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competition from low-cost rivals, and has suffered more than a dozen

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strikes over the past 12 months As a part of our series

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on the challenges facing the global airline industry we've been speaking

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with Lufthansa's Chief Executive, Eurowings, was crucial

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for Lufthansa in allowing it We have places in Germany,

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Stuttgart, Luxembourg, Hamburg, they are rich business centres

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themselves, and we had to realise we could not compete there with our

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brand of Lufthansa and the cost of it. We had to create a new brand

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which is still the best value for money but at much lower cost and

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that was a necessity. We started late on that which forced us to

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really accelerate over the last two years. But we have now reached the

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number one position and we are number three in Europe in this

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regard. That was quite a race over the last two years. You have paid a

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price for this. There has been a great deal of industrial action

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costing you a lot of money. Will you look back on this and say it was all

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worthwhile? Two things came together on industrial action. First of all,

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every legacy alive that still carries on money has to go through

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that process. Secondly, unfortunately, unions tend to see

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internal competition much more critically banned external

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competition. -- than. That is why we overcame an issue we would have to

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have overcome any way. That is why it is so important that Eurowings

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were offered well-paid jobs, much better than competitors. We provide

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good standard up to European standards. That creates a business

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model. Are the unions now seeing the big picture? We made great progress.

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Now we have 95% of our staff on either new contracts or modified

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contract. We had a huge issue with pensions, as many other German

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companies were able to solve, with 95% of our staff. I am sure we will

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be able to find solutions for the remainder of our staff. I am Aaron

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Heslehurst. Thank you for sharing your time with me. I will be back

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later. Goodbye. Social care for elderly people

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is on the brink of collapse in some parts of England, according

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to the charity, Age UK. It says more than 50,000 people

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are now not receiving any help,

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