20/04/2017 World Business Report

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Will be looking at the international newspapers later.


Now for the latest financial news with Sally Bundock


Red lines: The head of the European Parliament meets


Theresa May with a list of 'non-negotiables'.


But will the UK's June election mean a softer approach to Brexit?


Plus: Rural revolution - why anti-Europe candidates


are finding fertile ground in the French countryside.


Also coming up, Japan sees its biggest jump in exports


We will have the numbers soon. It has been moving the markets in Asia.


But first: We start here in London


where in a few hours time the head of the European Parliament is due


in Downing Street to meet the British Prime


Minister Theresa May. Antonio Tajani's visit comes


as the country prepares for an election which will be


dominated by Britain's exit The European Parliament has a vote


on the final Brexit deal, and has set out a series of "red


lines" it won't compromise on, something Tajani will no doubt


discuss with May today. It wants the final agreement


to make sure the UK complies with a range of EU policies


on issues such as the environment, It also stresses the


United Kingdom must honour all its legal and financial


obligations to the EU, which includes its agreement to pay


into the budget until at least 2020. Now, that could mean


a hefty exit - or divorce - And one that's bitterly


disputed by some in the UK and it insists two major EU


regulators currently based in London - the European Banking


Authority and European Medicines Agency - will also have


to move to the continent. Some in financial markets are now


betting that getting the election out of the way in June will allow


the UK to be much more flexible in agreeing to these demands,


and avoid a so-called 'hard Brexit'. Markets have recognised that


Theresa May defending an effective majority of only 17 in Parliament


was likely to be quite problematic for her in the next


couple of years while Brexit And so, on the basis that currently


the Conservative party is enjoying a lead of 18%-20%


in the polls, we might logically expect a much bigger and more


defensible majority government post the June 8th election and make


the negotiations that she has to conduct over Brexit


that much more viable. That was the view there. But we get


another from Anand Menon. Professor Anand Menon is Professor


of European Politics and Foreign Affairs


at Kings College London. Thank you for coming in. Mike Ingram


Mac, and many have argued that it Theresa May does get their strong


majority there that she is hoping for, she will get a better position


to negotiation. What are your thoughts on a meeting today? In one


sense, she is in a stronger position because it makes life easier


Parliament. She has to make a lot of things happen. I don't think it will


affect the European Union was that position. I don't think they care


one way or another what her size of majorities in Parliament. I think


they will put together what they think is a fair negotiating


position. That won't change to matter what. How important is


today's meeting? The European Parliament is not involved in the


negotiations, but it does have designed. It is a curious one. We


are not negotiating with the European Parliament. But we need to


keep them onside. Because the worst of all world is that we get to the


end of the two years, and they voted down. They can do that. Keeping them


on side is important. Some of these things we have talked through, they


described as red lines that cannot be crossed. The divorce bill of 60


billion euros already, David Davis is saying that it is nothing like as


nearly as high. This has been bandied about as a possibility. The


first stage of our negotiations with the commission is going to be to


figure out what we should be including in our bill and what we


should not. I don't think that figure is set in stone. But the EU


is making it clear that whatever the figure they arrive at, we had to


pay. We can get around it. The issue of the timeframe, it has been said


from the beginning that it is tight. We had to get negotiations in so


that national governments can pass it through their own parliaments,


and that it is signed. Now the timeframe is even tighter because


the Prime Minister has to fight an election, first. What are your


thoughts on that? Brussels seems to be fairly miffed about that. I think


we can do the divorce within the time we got. That will be easy. --


we have got. But I don't know any trade experts that think we can


negotiate a trade deal to the future even with the two years, which we


don't have. What we're looking at is more likely transition. A the


translation is then lengthened between the negotiation and our next


general election. So Theresa May might be able to say have a short


transitional implementation phase that allows us falling off a cliff


edge for the moment. I will probably talk to you again in the next little


while. We appreciated. We are also in rural Provence


in southern France - as the nation gears up for the first


round of its Presidential It's in the countryside that most


support has been building for the two populist anti-EU


and anti-Euro candidates: The National Front's Marine Le Pen


and the hard-left firebrand Jean-Luc Theo Leggett has been


finding out why. Glittering under the Hajj son of


Provence. These rice fields are floated before the crop is planted.


Prices being grown in the region for centuries, but now the industry


faces a difficult future. Competition from abroad and a big


reduction in subsidies have taken a heavy toll on production. Growers


say they that no help the government in Paris. They think that has to


change. TRANSLATION: Politician should be


focusing on rural issues in France. There are 15 million people living


in rural areas. About one quarter of the population. Politics must become


rural again. The rice business has its own particular concerns, course,


but you will hear much the same sort of thing if you talk to farmers up


and down this country. They are worried that their problem simply


are not being taken seriously enough by politicians in towns and cities.


In the small village here, farmers have gathered for the weekly market.


They have little time for mainstream politics.


TRANSLATION: Rural issues are taboo. It is only large towns and their


inhabitants that politicians care for. Country people are being


forgotten. TRANSLATION: I think it is the


candidates on the far right and far left that people here would vote


for. The extremes. TRANSLATION: I will vote Marine Le


Pen. Because she is a woman, and we have never had a female president in


France. She could bring something new that male leaders have not in


the past. Opinion polls suggest that dissolution among rural people is


providing a boost for the populist candidates. Jean-Luc Melenchon and


the Front National's Marine Le Pen. They have a sense of abandonment


from the major political parties. You know, they used to be a large


portion of the population. Now they are very small portion, and


therefore they are not in the centre of the political scene any more and


so more and more they are turning to the Front National, which again


looks like the only alternative for them. Although more than three


quarters of friends's population now lives in cities, the countryside is


still home to millions of voters. -- France. Their voices might


ultimately become very important indeed. Theo Leggett, BBC News,


Provence. Now, let's go to Asia now


where markets are getting a boost from some strong trade


figures from Japan. Rico Hizon has been


looking at them for us. Nice to see you. This is great news


out of Japan in the munch of March. It has sold a lot of goods overseas?


But the big question now is can be sustained? For now, the Japanese


stock-market and investors are cheering will stop this was better


than expected. These export levels have not been seen in more than two


years. And a strong result, which came in better than expected, may be


a sign that the economy is indeed picking up in the world's third


largest economy. Export gains were led by strong than full auto-parts


and optical instruments, such as mobile phones and tools to make


semiconductors. And by regions, exports to China rose by more than


16%. Shippers to America expanded by three and a half %. So the


fundamentals are improving here, you now have the International Monetary


Fund raising its forecast, projecting a 1.2% annual expansion


this year from a previous forecast of just .8%. And also a key business


confidence survey also pointing to rising optimism amongst big


Manufacturer 's. Soap Shinzo Abe might be pulling the right strings,


pushing the right buttons, and he has been trying for years to


rejuvenate growth and end a period of the non- inflation through a


policy of easy money, stimulus, and reform. -- predator. But the


question is can be sustained in April and the coming months? We will


rely on you to keep us informed. We will see you soon. -- So, Shinzo


Abe. That is all promised on World Business Report for the time being.


We will see you in a minute for a review of the new stories. See you


in a moment. Sally will be back in a