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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,