tv BBC Business Live BBC News April 19, 2017 8:30am-9:01am BST
this is business live from bbc news, with ben thompson and sally bundock. let battle commence! plans for an early election in the uk look set to be approved as the prime minister seeks to strengthen her hand in the brexit negotiations. live from london, that's our top story on wednesday 19th of april. the uk will go to the polls onjune eighth and brexit will be the key battle ground on the campaign trail. we will have the details. the chinese giant that will be sharing its driverless car technology. could its driverless car technology. could it accelerate the sector? after a busy day for the markets die jesting
the news of the snap election, this is how the numbers in europe have open. we will have the details for you, and why. the uk election will be dominated by brexit — so what's the view from the eu? we'll be crossing live to brussels to find out. what do you want to ask about what the election means for brexitjust use the hashtag #bbcbizlive. welcome to the programme. here we go again. nine months after becoming prime minister, theresa may is throwing the dice and betting on victory in a snap election onjune the 8th. today, mp's are expected to vote in favour of the proposal, which mrs may says will bring greater certainty as britain prepares to leave the european union. markets reacted swiftly to the news.
the pound was on a roller coaster ride — itjumped — then swung to loss and back again rising by as much as two point 7% against the us dollar — some analysts believe markets are cheering the prospect of a larger conservative majority which would give less power to hardline eurosceptics within her party. the ftse 100 — the leading stock market in london — fell 1.8% — the biggest fall since early november — but remember it's because a stronger pound makes their dollar denominated earnings look weaker. but despite the ongoing uncertainty, the international monetary fund has revised its forecasts for the uk economy up — predicting growth of 2% this year. that would make it the second fastest growing developed economy in the world, behind only the united states. business groups have used yesterday's news to demand politicians make firm commitments as part of any potential election campaign. will they get them? that's the big
question. in a moment, we'll hear from the boss of wpp. which is the world's biggest advertising agency. but first here's the director general of the confederation of british industry which represents nearly 200,000 uk businesses. more uncertainty not welcomed by business but in terms of the longer term benefits, ithink business but in terms of the longer term benefits, i think many businesses are seeing the opportunity for a government with a stronger mandate bringing longer—term stability and also a potential benefit in terms of timing, in that the implementation period at the end of article 50 was going to have a general election in it and may now need to be run with a period of stability, so some good news, a silver lining from this.” can't see that it will make the eu negotiate less effectively, but on the other hand it gives her a much stronger position. she is not susceptible to uprisings or results
from the hard brexiteers. ithink the reason why sterling strengthened is that the markets are saying this probably means a softer brexit or a transition agreement, rather than, again falling over a cliff at the end of negotiations. mark littlewood is director general of the uk's institute of economic affairs a free—market think tank based here in london. just to say so the viewers are aware, the think tank itself is neutral but you yourself are very much pro—brexit, that was your boat last year. give us your take on the timing of this snap election.” think the prime minister has done the right thing. at the moment the conservatives have a very thin majority and in normal political cycles that would diminish further in the next two or three years. so a
snap election now is a chance for a fresh mandate. if theresa may winscombe which the opinion polls indicate she win, it will be her first public mandate, and if she we re first public mandate, and if she were to return with a majority of say 100 or more, then she is in a stronger position around the negotiating table, not because it affects what the eu does, but because she doesn't need to look over her shoulder about what the house of commons might do. if she does win decisively, and that is her gamble that what the opinion polls say, then she is in a stronger position because she doesn't need to worry about domestic political concerns when she is sitting face—to—face with the eu, having triggered article 50. why the change of heart, because she was on record, no general election, no general election, oh, we are having a general election. why the change of heart? i am not sure there has been a change of heart. the nature of these things, if you are going to
call a snap election, it needs to be a bulk from the blue. the bbc only had an hour's a bulk from the blue. the bbc only had an hour ‘s notice that theresa may was going to say something. but she couldn't have done was to have the last six months of saying well, i'm mulling it over, ithink the last six months of saying well, i'm mulling it over, i think it is 50-50 i'm mulling it over, i think it is 50—50 whether i have an election, some bupa think i should, some think i should not. you need to be decisive, and that means she has decisively had to change her mind on this. so we know about that for sure but as carolyn said and sir martin said there are so much uncertainty still and that will continue in the next few weeks and beyond. the pound rose strongly, many would argue, on the view that those hardline eurosceptics within the conservative party will now be further die looted by this general election. actually that's something i presume you don't wa nt that's something i presume you don't want because you actually want a ha rd want because you actually want a hard brexit? i do want a hard brexit, a clean brexit, a decisive brexit, a clean brexit, a decisive brexit, call it what you will. we don't know yet what will be in the conservative party manifesto but i suspect theresa may will end up being a hard brexiteer. ithink suspect theresa may will end up
being a hard brexiteer. i think the conservative manifesto will commit the uk to leaving the customs union and leaving the single market. that's about as hard as brexit gets. will the public vote for that? we don't know the answer, that is up to the public on june don't know the answer, that is up to the public onjune the 8th. if opinion polls are about to be believed, and they have not got everything right in recent years. but if they are to be believed, theresa may is on track for a landslide victory, and therefore the lines in the thing will be the decisive part of the negotiation and i think that the conservatives and theresa may will make to a pretty ha rd theresa may will make to a pretty hard brexit and win a mandate for it. we shall watch this space. thank you for your time. we talk about the battle lines being drawn, six weeks of interesting campaigning to come. let's bring you up to date with the news. the dutch paint and chemicals giant akzonobel has reported record profits for the first three months
of the year coming in atjust over $400m. it's a welcome boost for the company's chief executive as he tries to fend off a hostile takeoverfrom us rival ppg. us president donald trump has ordered a review of a temporary visa programme used to place foreign workers in high—skilled usjobs. technology firms are amongst those most reliant on the h1—b scheme which admits 85,000 people a year to the us. mr trump also told government agencies to enforce existing rules on excluding foreign contractors from bids for government projects. the computing giant ibm has announced a fall in sales in the first three months of the year. it marks the fifth straight year of declining revenues for the company as it struggles to adapt to the switch to cloud computing and programmes — affecting demand for its consultants, hardware and traditional software. lots of other business stories out there, believe you me, apart from there, believe you me, apart from the fact we are heading for an
election here in the uk. among them, burberry. the luxury goods company, it is reporting a slight slowdown in fourth—quarter sales. tough conditions in the us, it says, weighed on its performance in the uk but it describes its performance in the uk as exceptional. that may well be because actually there has been a real rise in tourism, luxury goods bought in the uk, because of the wea kness bought in the uk, because of the weakness of sterling since lastjune fozz friend. burberry down 6.1% so far as fozz friend. burberry down 6.1% so farasa fozz friend. burberry down 6.1% so far as a result of those figures. we will keep an eye on that. chinese internet giant baidu has said it will share much of the technology it has created for its self—driving cars. but what can it mean for the sector? shananjit leyl is in singapore.... we have talked about all sorts of firms being involved in the d riverless ca rs race firms being involved in the driverless cars race and the really is a race, isn't it? it is, and what
is a race, isn't it? it is, and what is surprising is that it is the chinese firm doing this, quite the reverse of other companies in the sector, such as tesla and google, who have tended to keep key developments in driverless technology secret. baidu predicts the project, called apollo, would help drive the developer. autonomous vehicles. it is the chinese internet giant, and they made the announcement ahead of the shang guy auto show. they said the technologies would be available as $0011 technologies would be available as 50011 as technologies would be available as soon asjuly technologies would be available as soon as july —— technologies would be available as soon asjuly —— shanghai auto show. it would make a range of services available to car—makers. baidu has been developing the self drive vehicles since 2015, and analysts say it could benefit baidu as it puts them in the position of becoming the supplier of the brains for more cars than just the ones of makes itself. and one potential benefit is also revenue from car—makers in the long term. analysts say this is a move a bit like google's decision to release
android, the free operating system for smartphones, even though it was free to use became a successful google because it actually drove users to the company's various mobile apps and services. so watch this space. we will and i know you will keep us posted from singapore. thank you very much. let's look at the numbers. uncertainty is the name of the game. just as the election cycle of the netherlands, germany and france was coming to an end, add in the new vote now in the uk. but sharp falls in commodity prices have already been a drag on the wider markets. iron ore prices hitting their lowest levels this year, copper prices down too, hitting their lowest levels since early january — over worries of oversupply. but in europe — the falls came on the back of that election surprise. as we've said, the rebound in the pound doesn't help the ftse — with earnings of the top 100 companies looking much rosier when the pound is weaker. but don't expect too much election—related on the markets ahead of the vote
on june 8th. unless the polls show a weakening of support for the conservatives. continued support gives theresa may a stronger mandate to take on hardline anti—eu backbenchers and that could take the edges off what's become known as ‘hard brexit‘. we'll assess that more in a moment — but let's first head to the us where michelle fleury has the details of the day ahead for wall st. us indexes seem unable to break their losing streak. will the latest earnings out of america change that momentum? shares in the big american bank goldman sachs weighed heavily on the markets on tuesday. that was after its quarterly results disappointed investors. this wednesday, morgan stanley reports first—quarter results. cost—cutting and a strong performance by its trading desk is expected to lift profits. meanwhile, failure to keep down expenses could cost american express. analysts are forecasting a drop in its quarterly profits and
the payment company is also suffering from lower rates to merchants as well as competition in the reward space. and on the technology front, well, improved royalties from chinese smartphone makers, that is expected to lift the bottom line of chip—maker qualcomm. so there is plenty going on, really busy right now. joining us isjeremy stretch, head of currency strategy at cibc world markets. nice to see you. good morning. lots of stories breaking yesterday, moving markets and let a lot of as mr because the ball from the blue from theresa may. a good day to bury bad news at least in this market as far as bad news at least in this market as faras godman are bad news at least in this market as far as godman are concerned. we did not necessarily focus quite so much ofa not necessarily focus quite so much of a goldman earnings, which were disappointing compared to their peers. when you think about the volatility all the movement in the
aftermath of the trump election back in november you would have notionally assumed that goldman's model based on high levels of trading and volatility would have benefited from that, so that was something about surprise. let's took quickly, the imf upgrading for the uk, the timing coincidental. absolutely. chuckling it put it only behind the united states. and behind canada, coming from a canadian house. i think it is interesting that the imf have pushed their numbers up in line are both governments and the and also the bank of england. i think the question is whether we can sustain the level of growth we have seen in quarters three and four based on consumption because of course we have seen the savings ratio in quarter four the lowest in the generation. consumers are still spending or have been spending at the expense of running down their savings. that is not a long—term scenario that can be sustained and of course we are still seeing the legacy of the price fall in the
value of sterling over the last year. consumers will struggle further in the year. for now, thank you, jeremy. not often just yet. further in the year. for now, thank you, jeremy. not oftenjust yet. he will return and talk about some other business stories. not more on the election there is to come. still to come, and we will talk about that. the election battle begins. what does the uk's snap election mean for brexit? we'll be live in brussels to assess the impact on the negotiations. keep sending in your questions, we will put that to our europe corresponded in brussels. you're with business live from bbc news. one of britain's most successful business people — jayne anne gadhia — the head of the virgin money bank — has for the first time revealed her struggles with mental illness. in an exclusive interview with the bbc she describes her debilitating bout of post natal depression and her continuing mental health struggles at work.
particularly periods of stressful work. she's been speaking to our economics editor kamal ahmed. the first time that i'd ever, ever experienced what people had described as depression i'd always sort of assumed depression was something that was a bit weak minded or something. and when it hit me i realised nothing could be further from the truth. the sort of thing that comes into your life and sucks all of your energy out of it. and ijust felt hopeless. i don't know where to go, i don't know what to do, i don't know who to talk to. you're at that point where everybody expects you to be happy and thrilled. her response to mental illness, to ask for help from friends, doctors, colleagues at work, and from close family, mum and dad. and to know it can return. forjayne anne, years later in the run—up to the virgin money's debut on the stock exchange. the stress there,
jayne, you said led to suicidal thoughts. i mean, it was an important, big emotional issue. huge, hugely so. you think, gosh, if i can't do this what is the way out? there is no way out, i can't tell anybody, what are the press going to say, have i let everybody down? am i really up to this? i thought i was but sometimes you think the alternative might be the easier way. i didn't go too far down that route but i can understand how people can get down that route and we must never allow that to happen to people. do you think people still see depression as a sign of weakness? if one of us turns up to work on crutches with a broken leg it's easier to sympathise, or empathise, or help. but when you can't see it i think that's much harder and it's easier to dismiss. that's part of the reason why both raising the issue and, as i say, a sensible and controlled way discussing it, means that it can be remediated in some way, whatever the right way is for the individual. that's super important. jayne anne gadhia speaking about her
experiences. you're watching business live — our top story: the uk parliament is today expected to approve the prime minister's plans to hold a snap election on june 8th. brexit is expected to dominate the campaign. a quick look at how markets are faring. i would like to mention france for oui’ i would like to mention france for our viewers in france. there is the cac 40, currently down slightly. 0n sunday it is the first round in their presidential race. that will
bring the several candidates down to two remaining candidates who will go in neck and neck to the month of may so in neck and neck to the month of may so let's not just in neck and neck to the month of may so let's notjust be obsessed with oui’ so let's notjust be obsessed with our events in june, important so let's notjust be obsessed with our events injune, important time in france. that's how they are looking. after the roller—coaster movement yesterday, the snap election, the pound against the dollar, 1.28, rising sharply. we promised you the view from brussels so let's do that on business life. the impending departure of the uk from the european union is a key issue in this election. 0ur correspondent gavin lee joins us from brussels. we have had quite a few questions coming through from viewers on this. i want to start off with peter's question because it was going to be my first question anyway. what is the view in eu? willa strong conservative presence in westminster league 2, i want to get his question exactly right, a more favourable brexit deal —— lead to?
exactly right, a more favourable brexit deal -- lead to? the view here from the european commission and council, the conduit between britain and the other 27 countries, is potentially it could be. we are told by senior eu staff, when you have theresa may dusting down the cobwebs have theresa may dusting down the co bwe bs of have theresa may dusting down the cobwebs of the hard brexiteers, those who were four remain, if there is more of a unity government, presumably done at presuming she is elected and it is not one of the other parties, the big concern here is what happens in 2019 is that some are worried there will be a hard brexit, that because in 2020 there is supposed to be a general election which has been brought forward, by 2019 there could be an emphasis by those arguing for a harder brexit that britain basically tethers itself, there is no transitional agreement in place and for europe all round that seems problematic for the markets. that might be something if theresa may has a mandate to be a straight negotiator, things might be
easier. that is basically, what is happening here is some of the eu diplomats are moving the chess pieces forward and looking at some of the potential positives. yesterday a prime minister said it is problematic because they are moving the date further and further until they can get into proper brexit negotiations. gavin, you have beenin brexit negotiations. gavin, you have been in brussels to rout this and throughout the eu referendum. i'm interested in what people are made of this when the news came in yesterday. it was a surprise for everybody in the uk. was there a tutting and eye rolling response in brussels? genuine shock. iwas in tutting and eye rolling response in brussels? genuine shock. i was in a midday briefing where all of the eu commission officials sit down to discuss the matters of the data. turkey was big on the agenda yesterday given the referendum and i mention the fact the news had come in from theresa may and there was real shock. the officials giving the press c0 nfe re nce real shock. the officials giving the press conference had no information is my impression talking to some of the staff yesterday was that there
was no briefing, nobody was told in advance. there was a conversation afterwards with donald tusk, the head of the european council, and heat we did a hitchcock reference, just like brexit the movement, firstly earthquake and then the tension builds, one of alfred hitchcock's quotes. it took them by surprise and now they say their position has not changed and they are ready to start talks. it is very different to how the movie ends and we can't choose our own ending, u nfortu nately. if we we can't choose our own ending, unfortunately. if we talk about what is going on this weekend in france, there could be another real issue for brussels if france were to go in the direction of marine le pen. massively. i will be in paris in a few days' time. whittling down to potentially two candidates if they get through to the second round and marine le pen is at the moment in contention. in the polls at the moment it looks like she is in second place with a chance to become the french president and she is strongly advocating taking france
out of europe and wants a referendum on the euro. that would be a game changer. it comes back to the fact that eu staff on brexit are saying that eu staff on brexit are saying that the british election is big, they believe the french election is potentially bigger given there is a real unknown candidate here. in brief talks proper will probably start for brexit in september given what is happening behind us and given what is happening with the british election. gavin, good to talk to you as always, thank you for bringing us up to date. was of twists and turns as this unfolds but we will keep you across that with oui’ we will keep you across that with our team particularly in brussels about the indications for brexit. jeremy is back and we are discussing some of the other stories in the press today in terms of business, so a breather from press today in terms of business, so a breatherfrom elections for a little while. this is in the wall streetjournal, sorry, little while. this is in the wall street journal, sorry, the washington post, the newest silicon valley perk, paid time off to get out on the streets and protest against mrtrump, the out on the streets and protest against mr trump, the new president. being paid on company time to
protest against the leader of the free world is an interesting variants but it is very much the case that silicon valley, which is an international community, as huge numbers of migrant workers and is clearly a sector which is very much opposed to a lot of the policies being pursued by mr trump and now the perks are being included in the workplace. it is a sector that relies heavily on the specific reason that trump has just recently honedin reason that trump has just recently honed in on in the last 24 hours in terms of how it is used and how much it is used. absolutely, clearly the industry feels under threat and while the industry has been very much known for providing unusual perks to provide and facilitate the workforce on a daily basis, this is 110w workforce on a daily basis, this is now a real and present danger for the industry and clearly they are responding to that by allowing them time off to protest. quick story from which many cinemagoers may have noticed, you can't make movies without china, the message from hollywood. the money that comes from
china and potential audience. indeed, that is the thing, when we have a big budget premier it's not just about the numbers we're looking at for the us opening but also how it opens in china. clearly there is that new global franchise of viewers being opened up. the chinese investor isn't just about being opened up. the chinese investor isn'tjust about putting money into the business but also looking at really entrenching themselves firmly in the industry and providing a real window into the chinese culture and the chinese process. jeremy, thank you for coming in andjoining process. jeremy, thank you for coming in and joining us this morning. another momentous day. the start of a big and busy campaign trail, iam the start of a big and busy campaign trail, i am sure. we will keep you across the details from westminster. that is it from business live, back here at the same time same place tomorrow. bye bye. hi, we're looking at are mainly dry
day of weather today but the amount of sunshine and you get will vary from place to place. high pressure in charge but we have this week whether from slipping into the north—west of the uk. introducing cloudy weather to the north and west. that cloud is reaching across the midlands, not a bad sunrise. this is the weather watcher picture sentin this is the weather watcher picture sent in by katie showing the scene around the birmingham area with some sunshine and high cloud making inroads. as we go through the sunshine highs of 14 degrees. the cloud will be thin enough across the midlands and central and southern england to allow hazy sunshine but always more in the way of thicker cloud in wales and north—west england, some spots of rainfor and north—west england, some spots of rain for cumbria and the isle of man, dumfries and galloway and cou nty man, dumfries and galloway and county down, and also into the
highlands and islands of scotland. away from these areas i mentioned essentially the weather will stay dry. the best of the sunshine in the east, the cloudy weather in the west. 0vernight tonight cloudy skies will filter southwards keeping most of us frost free, but perhaps a nip of us frost free, but perhaps a nip of frost for the countryside in south—east england, areas like sussex and kent could be at risk of seeing that. the cloud big enough foran seeing that. the cloud big enough for an occasional spit of rain across northern england, perhaps into the midlands and mid—wales as we go through thursday morning but the amounts will be very small. just a cloudy kind of day across england and wales. loss of cloud in the north—west, a few showers pushing into the western isles of scotland. for northern ireland and scotland generally, the skies are a little bit brighter, scope for if you hazy spells of sunshine to come through and temperatures around 12—14. on friday perhaps a little rain in the western isles of scotland, otherwise another dry day. a bit more sunshine to go round and with lighter winds it will get warmer, temperatures up
to 17 in london but the warmth would be with us for very long because here is the forecast for the weekend. high—pressure shifts further westwards allowing northerly winds to come down. those winds will bring some slightly cooler air, still not feeling bad particularly in the sunshine with temperatures around 15 degrees, similar to the weather we have seen in recent days but always to the north and west a bit more in the way of hello — good morning — welcome to the programme — we're live in westminster this morning because today theresa may goes to the commons to ask mps to agree to a snap general election in 50 days' time. in westminster will risk our ability to make a success brexit it will cause damaging uncertainty and instability to the country, so we need a general election, and we need one now. are you feeling a bit like brenda?