tv BBC Business Live BBC News April 5, 2017 8:30am-9:01am BST
this is business live from bbc news with sally bundock and susannah streeter. britain s prime minister suggests freedom of movement could be extended after brexit as the european parliament has it's say on the deal. live from london, that's our top story on wednesday, 5th april. this is the scene live in strasbourg where politicians are laying out what they see as the priorities for brexit negotiations. we will talk more about that in the programme. also in the programme: iceland's parliament considers making it the law to pay men and women the same. employers who don't could face fines. markets are mixed.
attention is now turning to tomorrow s meeting between president xi and president trump. and we'll be live at london's city hall where business leaders from europe's big cities are working out how to get through the uncertainty of brexit. and as iceland legislates to enforce equal pay — we want to hear from you — what would you do to level the pay of men and women. just use the hashtag bbcbizlive. welcome to the programme. perhaps some transparency on what people are actually paid. i'lljust throw that one out there. send us your comments. it has been a week since the united kingdom finally gave the european union notice it wants to leave. the british prime minister theresa may has suggested freedom of movement of people between the uk and the eu could be extended after brexit.
that's just one issue the european parliament is discussing and it matters because it can veto any final agreement made between the uk and the european council. one of the other big issues they'll be looking at is the size if the so—called divorce bill. a figure in the region of $60 billion has been widely reported. at the moment the two sides are bound by trade worth about $640 billion a year. the future of that will be discussed and the initial draft warns the uk against starting any trade negotiations with other countries whilst it is still a member of the eu. britain s role as the world's biggest exporter of financial services is also picked out with a warning the uk shouldn't expect "privileged access" to the eu's internal market. there is also a call for "legal certainty" for companies. an estimated 300,000 uk firms currently export to the eu.
two leading industry regulators are also facing the prospect of being relocated from their current london offices. they are the european banking authority and the european medicines agency. 0ur correspondent dan johnson is at the european parliament in strasbourg. hello there, dan. we have heard about the red lines being laid down. which issues, among those sally was just talking about are the most pressing, do you think? well, the european parliament, meps appear to be all agreed that the main priority is to guarantee the rights of eu citizens who live in the uk and brits who live in other parts of the eu. so sorting out what access they will have to health care, benefits and pensions to, to education, they wa nt and pensions to, to education, they want certainty for those people as
soon want certainty for those people as soon as want certainty for those people as soon as possiblement other issues up for discussion today that they think need to be addressed quickly are the bill, the accounts that have to be settled by britain as it leaves the eu and also the border situation in ireland. everyone agrees that that needs to be sorted out as simply and as smoothly as possible, but the debate has got off to a tetchy start. some of the meps who have spoken have been jeered start. some of the meps who have spoken have beenjeered and booed by the ukip meps and the president had to appealfor calm. the ukip meps and the president had to appeal for calm. he said the ukip meps and the president had to appealfor calm. he said he doesn't want the chamber to descend into the atmosphere of a football stadium so perhaps an idea already that the discussions are not going to run smoothly. there is going to be really tough debate and some strong words have been spoken already here this morning. what do you think will be made of prime minister theresa may's comments that it's looking as though perhaps three movement of people between britain and the european union could be extended during a so—called implementation phase? yes, that's
interesting news. two admissions from the prime minister this morning. 0ne, from the prime minister this morning. one, that there will likely be some sort of implementation phase when free movement of people would exist and also an admission that a new trade relationship between the eu and the uk couldn't be agreed until after the uk actually leaves. now, that is all in accord with what meps have been suggesting. the draft resolution that they're debating this morning calls for a transitional period of up to three yea rs transitional period of up to three years for a new arrangement between the uk and the eu to play out. so it sounds like the two sides are perhaps coming closer together on that, but worth bearing in mind what the meps set down this morning, are only advisory guidelines. it's the european council, which is in effect the heads of government of the other 27 states across the eu, that will actually have to sit down with the uk on the other side of the table and hammer out the details. that won't start for a few weeks yet. 0k, dan, thank you very much. and brexit is also getting people talking here in london. european business groups are meeting
at the mayor's office city hall to discuss how they can work together. we'll speak to one of them live later in the programme. interesting to hear what he has to say. that's coming up in ten minutes. in other news: the us president has promised sweeping reforms to us banking regulations that were introduced after the financial crisis. donald trump has vowed to give a "haircut" to the dodd—frank rules enacted by barack 0bama in 2010. iceland's parliament has presented a bill to enshrine in law equal pay for women and men across the public and private sector. if passed, the bill would require all employers with over 25 staff to prove they offer equal pay to all employees. the law would be a world first and would come into effect from january. us anti—trust regulators have given preliminary approval to chemchina's $15 billion takeover of swiss pesticide and seed giant, syngenta.
however, the federal trade commission ruled that it would require chemchina to sell off its business interests in three chemical products to maintain competition in the market. the takeover would mark the largest overseas takeover by a chinese firm. uk chancellor philip hammond is on his final day of a two—day visit to india. he's there with mark carney, governor of bank of england and other financial sector leaders. today's he has been meeting india's fintech community and the head of india's cental bank. sameer hashmi is in mumbai. tell us more about how it is going today. well, we are here at a company in mumbai. the chancellor visited this place a few minutes ago. hejust left five visited this place a few minutes ago. he just left five minutes ago. he interacted with different start—ups, the start—ups are
operating in the financial services space, that's one area where this delegation is focussing a lot because they have been trying to tell the indian government that that's the area where uk and india can work closely. later in the day the chancellor is also going to be meet the governor of india's central bank. he is addressing a conference where business leaders from both sides will assemble. they are going to talk about financial services. so clearly, lots going on, but the main thing is that once post brexit, when these two countries start negotiating a new deal, that's when the pressing issues will come in front and that's something which delegates here say will take sometime to emerge. this trip so far has been going, let's see how the financial services conference goes. thank you very much. so we will watch that space. prime minister theresa may is in saudi arabia. her agenda is trade to a descre, security and defence is also on
there, but it would seem there is a lot going on this week, that's for sure. looking at markets across asia, that's last night's close. these have edged higher in asia. hong kong opened today, and china and taiwan, they were closed yesterday for a public holiday. 0n the dow, now, the biggest car company by market valuation on stock markets is tesla. so the tesla shares edged up again on tuesday. so it is overtaken general motors, it is valued more than general motors and ford. let's look at europe and how they are doing now. flat. no major moves in either direction. interesting we will be looking ahead to president xi and president trump meeting on thursday. let's discuss this in a few minutes time. also on the agenda in the states the construction companies who are hoping to get the contract companies who are hoping to get the co ntra ct to companies who are hoping to get the
contract to build the controversial wall that divides the united states and mexico. so the deadline has come and mexico. so the deadline has come and gone. michelle fleury is in new york with more details. donald trump's proposal to build a border wall with mexico has drawn interest from hundreds of companies around the country. a us official told the bbc the finalists will be picked in the next few months and will be asked to build a prototype wall in the san diego area. now, some of the ideas are unconventional. 0ne miami firm is proposing a sustainable structure built out of recycled shipping containers, but according to some us media reports, many bigger companies are actually steering clear of the project. building a wall was a cornerstone of trump's presidential campaign, but it was also one of his most controversial policies and the political challenges may prove greater than the engineering ones. it's not yet clear who will pay for the wall. the deadline to submit bids came as news emerged that illegal crossings from mexico have fallen 67% under donald trump. joining us is kathleen brooks, research director for city index.
hi there. kathleen. good morning. we talked about the red lines being drawn as far as europe is concerned, but what about the red lines between china and the us? it emerged today more of the position that the us is likely to take when president trump and president xi meet? it may not be considered particularly friendly. there is an article written by trump's secretary of commerce in the ft about trade and how trump's harsh trade negotiation and renegotiation if you like is, you know, really targeting china and those countries with big surplusesment he went on to say that, you know, the us has the world's largest trade deficit. people say that's good, but the countries with the surpluses they have seen their economies expand. that's a direct rirches to china. so this isn't necessarily going to be
the easiest summit. there is some talk that they could label or the us could label china a currency manipulator, not that there is much evidence to support that. that's something he said he would do on day one in office. he said he would slap ta riffs one in office. he said he would slap tariffs on goods coming into the united states from china. hefty ones. but in terms of the financial markets, to what extent are they watching this discussion tomorrow because it is about the geopolitics and north korea in a major way? what we have seen actually, we had this massive trump rally from when trump came into power. that slowed down and the gains were slowest since trump came into power. if you add this, this is the first real kind of major summit that he has held, i think stock markets will be watching it really, really closely. they are moving on the back of politics, on the back of a slip of the tongue from donald trump. we have seen share prices or a tweet? or a tweet. if it comes out that america and
china are in a very tense position and maybe there is not going to be any breakthrough with north korea, that could spike volatility which is really, really close to historical lows and we could see a harder time for the markets going forward. kathleen, many thanks. you will be coming back to look through the business stories in the papers including the story about how iceland is bringing in a law to... there is a vote on it. financial services are set to be one of the biggest priorities for britain in the forthcoming negotiations. later in the programme, we'll speak to a business leader representing the german financial capital, frankfurt. you're with business live from bbc news. mps are calling for more action by british businesses on corporate governance and executive pay. the report from the business energy and industrial strategy committee comes in the aftermath of the sports direct and bhs inquiries and calls for companies to do more to regain trust. iain wright mp,
chairs the committee. thank you very much for coming on the programme. to what extent were you disappointed by theresa may dropping proposals for employees on company boards? do you think that would have made a difference? when theresa may came into office, she talked some really strong words about corporate governance and how there was a disconnect between business and society and she was right, but by the time the corporate governance green paper came out before christmas, those proposals had been watered down considerably. now, we don't believe on the select committee that a one—size—fits—all approach to corporate governance is the right one, however, having that employee engagement, having that long—term and strategic view that workers can provide, we think are a positive step for corporate governance and the idea that you could have workers on boards, providing that strategic challenge,
thinking about the long—term views isa thinking about the long—term views is a positive one. is it enough to close the gap between what some company bosses are earning and those who work for those bosses? because in some places the gap is enormous. and it is getting wider. i think i mentioned about a disconnect between business and society. the ordinary man and women in the street will have seen that restraint, stag na nt in the street will have seen that restraint, stagnant wages for a decade and a constant ratcheting up of executive pay. they will not have seen a commensurate rise of executive pay. they will not have seen a commensurate rise in company performance. so that link between pay and performance at the top of companies seems to be broken. it is far too complex, it is difficult to keep track of and therefore we are proposing in the select committee report to simplify it, and the long—term incentive plan should be abolished as soon as possible. let
me bring in another story this morning. that of an end to the bovis buyout bed. —— buyout bid. bovis have appointed the former telford tripos as their chief executive. —— gallifrey at try boss. you're watching business live. our top story — the british prime minister theresa may has suggested freedom of movement of people between the uk and the eu could be extended after brexit as the european parliament lays out what it sees as the priorities. that is happening in strasbourg as we speak. a quick look at how markets are faring. the ftse 100 is on the ftse100 is on the up, as you can see. pretty positive in frankfurt. the cac a0 is treading
water in paris. there is quite a lot of uncertainty on the global market still surrounding the meeting between donald trump and the chinese premier. working out what the future trading relationship will be between the us and china and finding out how that will affect the rest of the world. you may be one of these people that subscribers to a music service like amazon prime or apple music. but would you consider subscribing to a garden? 0ur north america technology reporter dave lee mucked in with a new idea starting up in california's famed wine country. for 85—year—old joe allen, tending a vegetable patch is work that she can no longer manage yourself. but she is now a customer of a new start—up offering gardening undermanned. you know, i am old so i cannot do what i
used to do. and it is nice. they have such a variety. i like it. the company provides this pair of tanks for a monthly fee ofjust over $200. that includes the soil and plants needed due the year. it also includes the help of the company who will come and tend the garden as and when it is needed. we have a check list that our team goes through, and we make sure that every plant has the proper nutrition but is also not getting eaten by pests. and if it is, we get it replaced as soon as possible, by taking whatever steps are appropriate. they say gardening isa are appropriate. they say gardening is a great way to relieve stress but you are taking away the manual part of that. we're not taking that away. it is still their garden, it is still in theiryard. it is still their garden, it is still in their yard. we're taking away the bugs, we're picking off bugs, we're doing some of the nitty—gritty stuff. bugs, we're doing some of the nitty-gritty stuff. the company hopes that as it expands, that a key
work will be carried out by teams of gardeners across the entire country. those gardeners will be able to turn to the compa ny‘s those gardeners will be able to turn to the company's mobile app for advice. this is where people can ta ke advice. this is where people can take pictures of the beds so that the people servicing the beds can ta ke the people servicing the beds can take pictures of the plans and sent it back to us at corporate. we review those and make suggestions or ta ke ste ps review those and make suggestions or take steps to correct that. this is not really affordable to most people just yet but if they can scale the idea, it could mean more of us could start growing vegetables in our own gardens. dave lee, bbc news, in california's wine country. i don't know if dave has green fingers or not. i know he has a dog. he tweets about his dog. you a gardening person? occasionally, an occasional gardener. maybe on a sunday afternoon, once every few months. we were going to ask you
today what apps you would like to get rid of some of the regular household chores. i think that will not cover it for me. it is the hoovering, the washing, the cleaning. let's have a look at what else is out there. bhp billiton, listed in london and sydney, has declared a force measure for its core products because of the damage wrought by cyclone debbie which caused chaos last week across many parts of australia. a force majeure means that a buyer cannot fulfil its responsibilities, typically after a natural disaster. bhp billiton has come out with that information today. over to thailand in our series looking at the property industry. the real estate prices there keep going up. just last month, a luxurious condo unit
was sold at a record price of $19 million in central bangkok. so what is driving this property market? jonathan head has been finding out. 0nce once again, bangkok is in the grip ofa once again, bangkok is in the grip of a property boom, much of that happening along new railway lines being built out into the suburbs. apartment blocks are rising along these routes. aimed especially at first—time buyers. but experienced property dealers steer clear of the riskier, low—end market. he is focusing on luxury condominiums like this project in central bangkok. here, demand is so high that he can buy a small apartment and resell it almost immediately at a substantial profit. people in the low-end, they do not have much money and the bank does not give mortgages. so that is the problem. at the moment, rich
people still have money. they can buy anything they want. if you buy a high—end property, people do not use rationale much because they have money. he showed me another project which has been heavily marketed overseas. foreign, mainly asian buyers account for nearly half of the purchases here. but is buying property is a good long—term investment? rent here is generally low, but only if you believe the property price will rise. that is farfrom certain. property price will rise. that is far from certain. we think that the average will increase on an annual basis, for a meat market high—end condo in bangkok, just shy of 5%. so if your loan is a%, thatjust basically wipes out any return you might make. so is all this construction is a sign of dangerously irrational exuberance? unlike 20 years ago, thyme banks are
being more cautious about their lending. some projects will fail but most will not. and there are not many people in thailand are worrying about another big crash. jonathan head, bbc news, bangkok. we mention that philip hammond is in mumbai, schmoozing. we have theresa may in saudi arabia as well and the parliament in strasbourg, the european parliament discussing brexit as we speak. and city hall in london, we have the london chamber of commerce hosting an event where they have invited european business leaders from across europe to discuss brexit and how to work together across europe. we were talking to —— hoping to talk to the president of the frank frankfurt's chamber of commerce but technical reasons mean we cannot so apologies.
but luckily, kathleen brooks is here in the studio to talk about the papers. we want to focus on the story about this equal pay proposition in iceland. it is really at the forefront of equal pay and equal rights. it seems like this could be a world first. definitely. iceland already has the lowest gender pay gap according to the consumer prices index. it is not just about financial equality and pay equality but political equality will come into it. also, iceland's economy is going great guns, expanding by 7% in the first quarter. these type of things seem to happen when the economy is doing well so will the same thing happen in the uk? no, for many reasons. to be fairto in the uk? no, for many reasons. to be fair to iceland, the economy was on the verge of collapse at the end
of the financial crisis and yet it has always pushed this agenda hard. i was talking to the head of air chambers of commerce a few years ago about this issue and he said the business leaders are really on board when it comes to gender equality. they really are. when the economy is doing well, like it is in iceland, thatis doing well, like it is in iceland, that is when bills like this will go to parliament and get past. let's go to parliament and get past. let's go to the tweets. 0wen has said that he only thinks equal pay will come about we extend paternity leave to six months. unless there are equal rights for men as well within the workplace, we are not necessarily going to get equal pay. workplace, we are not necessarily going to get equal paylj workplace, we are not necessarily going to get equal pay. i think that is right, but i do not think why women should be penalised because they are doing what some people would consider a good thing for society, by taking a year out and looking after their child. society, by taking a year out and looking after their childlj society, by taking a year out and looking after their child. i do very much. it is a huge topic of debate and busily we cannot discuss it all now. that is all from business life.
good morning. if you were up early enough you would have noticed the chill in the air. a touch of frost in southern parts of the uk this morning. the payoff was a lovely sunrise. this was a weather watcher earlier. please continue to send those in. the reason for the fine start, no weather fronts to contaminate us today. it has been blowing a gale tonight across the north of scotland and that will continue, gradually easing with sharp showers pestering the northern isles. thereafter, there will be the odd shower in the west of scotland, but the best of the sunshine would be in the east. thicker cloud across northern ireland and northern england. it will not spoil the day. that could be the odd light shower if it gets big enough. the best of the sunshine likely to hold on in the sunshine likely to hold on in the south. for most of us, it will
feel fresher. and that will be reflected through the night. the wind will continue to ease. we will find holes in the cloud developing and again it could turn chilly. 0nly sevens and eight most of us. a chill in the airfirst sevens and eight most of us. a chill in the air first thing tuesday morning. but largely, the dry picture will continue. by day it will feel warm and by tonight it will feel warm and by tonight it will be chilly. spells of sunshine to be expected on thursday but we have a weather front close to the northern isles keeping thicker cloud and patchy rain here. perhaps some showers coming into the west of scotland. 11—15, perhaps the same as we will see today but a little warmer. more sunshine as we head into the weekend. worth bearing in mind that the sun is as strong now as it is late in august, so do not be caught out. with high pressure, as we import warmer here from spain
and portugal, we will see more sunshine coming through, hence the fa ct sunshine coming through, hence the fact that it will be warmer. good spells of sunshine as we go through saturday, and we will start to see temperatures creeping up as well as that sunshine gets to work on that cloud. certainly on sunday, we could see temperatures up to the 20s. certainly that nagging weather fronts to the north and west of scotland. bye—bye. hello. good morning, it is wednesday, it's 9am. i'm victoria derbyshire. 72 dead, 20 of them children in a suspected chemical attack in north—west syria. the pictures of dead and dying children are almost impossible to look at. what can be done, if anything? i lost my son, my children, my neighbours, my daughter. they're all gone. i only have got left... we will be live on the ground where it happened and we'll ask whether the