tv Business Briefing BBC News July 2, 2018 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. all change in mexico — andres manuel lopez obrador is to be the new president, the first left wing leaders for decades. what will this mean for the economy? we get an expert view. a merger of steel — tata steel and thyssen—krupp finally reveal their intentions for marriage to create europe's second biggest steel maker and on the markets... this is how hong kong closed at the end of last week. they are closed today for a public holiday. investors are getting their heads around the news including dissension in the ranks in germany. the euro is weaker. left—wing candidate
andres manuel lopez obrador has won a landslide victory in mexico's presidential election, exit polls indicate. his closest rivals have both admitted defeat and congratulated mr lopez obrador on his victory. his election comes at a time of disillusionment at unchecked corruption, violence and poverty. so, what challenges will the new leader — best known as amlo — face? the good news is mexico's economy grew by 2.4% in 2017, with similar growth rates predicted for this year. but the country faces several interlinked problems. the biggest is mexico's massive violent crime rate, with over 29,000
murders in 2017 alone. aside from the terrible human cost, this statistic also carries an economic weight — the mexico peace index put the cost of the violence at us$249 billion in 2017 — around 21% of mexico's gdp. much of the violence stems from drug trafficking, with rival cartels vying to control the flow of drugs into the united states. it's lead to widespread corruption, with transparency international ranking mexico 135th on an index of 180 countries in 2017. mexico also has high levels of poverty. recent figures from coneval, who measure poverty in mexico, say 43.6% of the population — or 53 million people below the poverty line. meanwhile the wealthiest 20% of the population earns 10 times as much as the poorest 20%. president elect lopez 0brador has talked tough against president trump.
he's seen as a strong leader to fight mexico's corner on free trade, and says he wants to maintain nafta as a trilateral deal. principal analyst, americas, verisk maplecroftjoins me now. 0bviously, obviously, we are still waiting for the final result but it looks like he has thejob but the final result but it looks like he has the job but he could have a majority in both houses in mexico which means he has an date all serious reform? projections are putting him with a majority in the lower house and potentially the senate as well which could win he could pass reform on socialform, taxation but also it gives a cheque in terms of he does not have a special majority that would allow
him to pass constitutional reform and he would need to negotiate with the opposition to do something like that. the violent crime is one of the key issues, the most pressing issue and the impact it has on the economy. what can he do about that? we have not really seen in mexico real shift in security policy and strategy seemed to thousand and six and we are expecting he will tackle that. —— since 2006. issues like decriminalising marijuana to target harder drugs and criminals. we will have to see what the details are but a shift in policy could be an issue of tensions with the united states and the white house. in terms of success and the white house. in terms of success in that area, people have voted him in and people are
extremely worried about how difficult it is getting in certain parts were the gangs are in control. what can we do about the no—go zones? this is about the electorate and the difference in what he can deliver. what andres manuel lopez 0brador has promised and what he can deliver. when you are talking about security, it is notjust an issue of deploying more trips, he mentioned that the issue of entrenched corruption, will he change the anticorruption? him a nationalised the energy sector but he cannot do that without constitutional change but in terms of what he can do for the poor, concerned about how much he might try and spend and that might last the budget. it is interesting because he has promised not to worsen at the fiscal position
which might mean there could be some reform because that money has two come somewhere. special spending, new ways of distributing wealth in mexico will be at the top of his agenda. his relationship with the president trump will be critical? nafta with negotiation is actually going to be more important than andres manuel lopez 0brador parse mac election. markets have priced in the fact that he would be elected and it is now depending whether mexico can we negotiate and he is likely to appoint will experience negotiator and that is going to be interesting. we shall watch very interestingly. thank you for coming in so early. more details about the
new leader and his intentions on the website. germany's thyssenkrupp and india's tata steel signed a final agreement on saturday to establish a long—expected steel joint venture, the biggest shake—up of the european steel industry in more than a decade. it is the largest deal in europe's steel industry since the takeover of arcelor by mittal in 2006, the 50—50 joint venture — to be named thyssenkrupp tata steel — will have about 118,000 workers and nearly $20 billion in sales. our business reporterjoe lynam spoke to tata's ceo and told us what he said. we gotan we got an idea about what this merger is going to mean for the plaids and jobs and effective. there will be 4000 voluntary redundancies across both companies and most of those will be in administration because we have a german company with plans in the netherlands and
the uk and there will be overlaps. they will go on a voluntary basis and then some will be disposed of, people who are not at the core of the business. he was not clear when we we re the business. he was not clear when we were talking what that non—core business use. —— is. zte has appointed a new chairman. what does this mean going forward? essentially they have a new management lineup as part of a deal to lift the crippling us ban on the company. it has suffered huge losses
since washington stopped it from buying american components way back in april and the us accused of violating trade agreement by selling equipment and technology to countries like iran and korea. it is fairly unclear, including some in donald trump's own party, oppose the deal saying it poses an economic and espionage threat so essentially we are seeing the new chairman, connected according to zte general meeting. it will also pay a penalty to resume business with us supplies. it isa to resume business with us supplies. it is a big dealfor zte.
ca nada's countermeasures against the trump administration's steel and aluminium levies have come into effect. it slapped a 25% tariff on various us metals products. on top of that, levies of 10% have also been imposed on more than 250 us goods like beer kegs, whiskey and orange juice. (tx 00v) "the european union is possibly as bad as china, "the european union is possibly as bad as china, only smaller," us president donald trump said in an interview broadcast sunday. trump went on to say, "they send a mercedes in, we can't send our cars in. look what they do to our farmers. they don't want our farm products. we don't protect ours and they protect theirs". let's show you the financial markets before we move on. that figure was
friday's close. we are seeing some losses in japan. friday's close. we are seeing some losses injapan. we have a weaker euro because of the concerns in germany, the political concerns but south korean shares and australian shares all headed lower as well including a stock in china. andy murray has said he's pulling out of this year's wimbledon tournament, which begins today. the two—time champion has onlyjust started playing again after eleven months out of action with a hip injury. meanwhile roger federer is making a bid for a ninth title after missing the french open. 0ur sports correspondent joe wilson reports.
if there was the vegas, remote is, wild as child is this might happen again this month, maybe we would all import andy murray to give it a go at wimbledon but he listens to his body and with a heavy heart withdrew. he released this photograph on social media with an apology to anyone who felt let down. he says he has to look at the bigger picture and he is not physically ready. he will be at wimbledon next year, he says. they do just that the news. how heavy were the heart of there? it is a shame. he has done so much for british tennis the last ten yea rs. much for british tennis the last ten years. you have to appreciate where he is coming from. he may lose to
somebody who perhaps he would not listed if he was fit. it is the best if it comes out when he feels ready and on top of his game. andy murray seemed ahead of schedule. now he is off to practise again, aiming to play in the usa later this month. the stage is free for kyle edmund and your anaconda —— konta but there is nobody quite like andy murray, he has the trophies. i must admit i will be glued to wimbledon. the world cup as well all coming up in about 15 minutes. this is the briefing from bbc news. the latest headlines: reports from germany say the interior minister horst seehofer has offered to resign because of his differences with chancellor merkel over immigration policy.
mr seehofer has been pushing for a tougher approach to asylum seekers and was reported to be unhappy with this week's european union deal on migration. votes are being counted in mexico's general election. exit polls suggest the left—wing candidate andres manuel lopez 0brador is likely to be the next president. his two closest rivals have both admitted defeat. one of his allies is on course to become the first woman mayor of mexico city. his suit closest rivals have already conceded. and possibly the first woman mayor of mexico city. russia football fans have been celebrating their team's unexpected triumph over spain in the world cup. russia won the match in moscow in a penalty shoot—out, eliminating the former champions. in the quarterfinals, russia will face croatia, who beat denmark, also in a penalty shoot—out. the world cup upset is all over the
media today, as are many of the other stories to let us take a look at some of them, starting in germany. starting with the frankfurter allgemeine, where the headline reads showdown with merkel as interior minister horst seehofer offers to resign over chancellor merkel‘s migration policy. we will look at that in just the second. —— we will look at that injust a second. in the financial times, the eu hints at countermeasures to president trump's threat of car tariffs, in a submission to the us department of commerce. as much as $294 billion worth of trade has been earmarked. in the daily telegraph, another world cup upset — the paper is calling it a ‘russian revelation' after the hosts sent home spain in a penalty shoot—out.