14/03/2017 World Business Report

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Welcome to World Business Report, I'm Sally Bundock.


Also in the programme: A smart jacket, and we are talking


The UK Parliament has approved legislation giving


Prime Minister Theresa May the power to begin formal divorce talks


However, she won't do that immediately, as some had thought,


but it will happen before the end of March.


The negotiations will bring a period of uncertainty for the UK economy.


Britain recorded growth of 2% last year.


But in 2017, the International Monetary Fund predicts this


will slow to 1.5%, though this is actually up from their previous


The story gets worse in 2018, where growth is expected to come


The ongoing uncertainty has also taken its toll on the currency.


Since the referendum last June, the value of the pound has fallen


The weakness in sterling has made imports into


In the three months ending in January, fish prices rose 8.8%,


tea prices were up 6%, and butter prices rose some 15.8%.


The negotiations will take place as eurosceptic political parties


gain ground across much of the continent.


The Netherlands is set to head to the polls tomorrow,


with France and Germany both set to face national elections


Carsten Nickel, managing director Europe, Teneo Intelligence


We have heard a lot already in this programme about what people think


about this in the United Kingdom. What is the view now in Europe,


given the fact that Article 50 is likely to be triggered very soon?


Well, I think the key point, the key word, is the one that you just


mentioned. It is uncertainty. So I think the whole question of the


Scottish independence push obviously adds an additional layer of


uncertainty, just in a moment when we should have really gained


slightly greater clarity from the UK side about the Brexit process that


is about to start now. So I think it is still very much a wait and see a


approach from the European side, and I think there is no expectation for


greater clarity until the end of 2017, really. As you say, the news


coming from Scotland, that it is looking for a new referendum on its


position in the United Kingdom, it throws in a brand-new curveball,


which makes things that much more complicated, given the fact that


Europe as well has an extremely interesting year ahead with the


various general elections I have mentioned. It means these


negotiations will be extremely critical, doesn't it? Yes, and again


I think what we are going to see in 2017 is a pretty high-level


conversation about a couple of points. One that we have been


frankly reading about in the media quite a bit over the last weeks and


months, is the ?60 billion Brexit Bill, the question of residents


writes for EU citizens and vice-versa. I think the really


thorny issue for the UK and the EU relationship, free trade agreements,


the future of Freedom of movement, these kinds of issues, they will not


be discussed until 2018 because only European side the question is, you


know, who is going to lead France, who is going to leave the


Netherlands, what about the next German government? I think these are


crucial questions on the Scottish question raises the question of


separatism in other member states of the European Union. So that will


further complicated the talks ahead in 2017 and 2018 -- further


complicate. While politicians try and win the election and economists


predict what will happen next, how our business is navigating this


uncertainty from your point of view? Well, that is really difficult to


say at this point. Again, it is a very much wait-and-see approach


because I think there is a strong sense that a serious conversation


about what is ahead in the future won't really began before 2018. In


the way the political -- in a way, the political conversation in 2017


will be backwards looking, looking at the legacy of UK membership in


the EU. What will be ahead is not going to be discussed until early


next year, so I think that really complicated makes it very difficult


for businesses to take a really forward-looking view here. Very


interesting. Thank you very much for your time. There is a lot more to


discussed in this story, and we will touch on some of that in our


newspaper review. It is all about the papers, worldwide.


Shares of Japanese conglomerate Toshiba have fallen 8% in Tokyo.


That is after the company announced it will extend the deadline


for submitting its earnings report, for the second time.


Sharanjit Leyl is in our Asia business hub in Singapore.


As second delay, that does not bode well at all in terms of what it will


tell us when it finally announces what is going on. That's right,


doesn't bode well. But unusually, for its shares, you mentioned it had


fallen as much as 8%. It has scaled back those steep losses after


announcing that earnings delay. The firm essentially asked regulators to


extend the March 14 deadline for official earnings to a little later.


They will be holding a news conference about this later on to


clarify things for investors. But essentially the first time they


delayed their earnings was in February. Doing so again, there were


disagreements with its auditors in fabric, when its chairman stepped


down, and all this because they are expecting a $6 billion write-down.


Some of its US nuclear assets not worth as much as previously


estimated, the situation leading many analysts to warn that the


country's future is at risk -- company's future is at risk. This


extension will need regulatory approval and failure to attain that


would mean it needed to submit earnings by the end of the month or


face delisting from the stock exchange. Toshiba is often


associated with its technology products but it is now a diverse


conglomerate. Its nuclear service business brings in the third of its


revenue and yet that side of the business has not been making a


profit since 2013. Nuclear services worldwide are struggling since the


Fukushima disaster of 2011. In December the said they faced a heavy


1-off loss due to its nuclear subsidiary, Westinghouse Electric.


Since that announcement in December, the shares have lost more than half


of their value. Thank you for bringing us up to date.


Thousands of tech leaders, policy makers and celebrities have


flocked to Texas, and not just for its famous barbeque


The annual South by Southwest conference and festival is in full


swing, and our North America technology correspondent Dave Lee


sent this report about the coolest thing he has spotted at the event.


The goal for Google is to provide our customers access to their


favourite services and information from everywhere and anywhere and at


any time. Whenever they are biking or walking or hiking or their hands


are busy, they should be able to access their favourite services,


literally from the cuff of your sleeve. Tell us what exactly is on


my cuff here, and how it works? What we have is a woven interface


integrated into the cuff material and the threads which capture your


gestures integrate together, and are transferred to this little tag that


we just snap on. You can see it is now Bluetooth head. A simple brush


brings you the time. It to 30 seven p.m.. Time the destination. Your ETA


is six minutes. You can control the music. Bidders is 2:37 p.m.. -- it


is 2:37 p.m.. That is quite expensive. It is a nice jacket, but


it feels quite pricey. How much of that money is going on connectivity?


So it is going to be about $150 without the additional technology


and we think that this is a really useful piece of performance


opportunity. This is what people need when they are on their bikes.


$350 price point is kind of where we go when we have really advanced


technology in our clothes. So what do you make of that? Send me your


thoughts on Twitter. It brings a whole new meaning to that is a smart


new jacket, doesn't it? I will see you soon.


It is claimed the amount of exercise children do starts to decline


Researchers at the University of Strathclyde tracked the activity


levels of more than 400 girls and boys over an eight-year period,