tv BBC Business Live BBC News July 10, 2018 8:30am-9:00am BST
this is business live from bbc news, with sally bundock and ben thompson. theresa may vows to fight on as two of the uk's top ministers resign over her brexit strategy. live from london, that's our top story on tuesday the 10th ofjuly. this is the scene live in downing street where theresa may's new look cabinet is arriving as she tries to push on with her plan for post—brexit trade with the rest of the eu. also in the programme... prices are rising in china as trade tensions with the united states push up the cost of food. we'll be live to the region to find out what it means for the health of the world's second biggest economy. and markets in europe are mixed as investors prepare for a slew of corporate earings.
and aiming for the sky... i take a ride on the world's longest and fastest inner city zip wire and meet the man behind it to find out how and why he built it. today we want to know, will your workplace be disrupted for world cup fever? and if you're not a fan, how will you avoid it? let us know, use the hashtag #bbcbizlive. hello and welcome to business live. it isa it is a packed programme and ben flying high in around 15 minutes is worth the wait! the british cabinet is due to meet in the next few minutes, the first meeting since david davis
resigned as brexit secretary and boris johnson quit as foreign secretary. for now the prime minister, theresa may, remains in charge of what is europe's second biggest economy. her plan for post—brexit trade is the only one on the table. but there's a lot at stake. uk trade with the other 27 members of the eu was worth about $815 billion last year. theresa may wants the eu to agree to a common rule book for all goods, which would minimise the border and customs checks which could cause extra costs and delays for companies. under her proposals, the two sides would act as a combined customs territory and she told parliament that 96% of businesses would pay the correct tariffs or no tariffs at the uk border. but there's been little detail on what the uk wants for the services sector, including financial services, which make up nearly 80% of the uk economy. so let's first head
to westminster and our correspondent philippa thomas. she is looking ahead to the day, and we have just seen new cabinet members arriving at downing street. it would be interesting to be a fly on the wall? it would, we are looking particularly at dominic raab, who goes into the cabinet as brexit secretary. he was and is a brexiteer, he is also a trained business lawyer who has had stints 9535; legsé 855“ re; re? 534i brussels working with the eu and in brussels working with the eu and the world trade organisation, so he really should know his stuff. he will be at the helm of negotiations with michel barnier now. alsojeremy hunt becomes the new foreign secretary. he is interesting because he was a remainer during the
campaign but afterwards, since, has said the country voted for brexit, i am now brexiteer. but it shifts the balance within cabinet is likely, perhaps towards what theresa may wa nts perhaps towards what theresa may wants which is, frankly, something ofa wants which is, frankly, something of a compromise between the hard and soft brexiteers. the question still hanging over mrs may as she gathers her newly reformed cabinet around her newly reformed cabinet around her is will she be faced with a leadership challenge. we are waiting to see or hear from former foreign secretary borisjohnson. i spoke to his former director of communications within the last hour and said will we hearfrom boris johnson today, he said very firmly, no. he said don't assume it is all about boris‘ ambition, he feels very strongly about the substance of those ads will have to think about it. borisjohnson said the brexit dream was dying and we will have to see how much sympathy he gets on the conservative backbenchers. thank you, philippa thomas, keeping
us thank you, philippa thomas, keeping us up to date and every twist and turn in westminster. let's discuss where this leaves the brexit plans. greg swenson is a partner at the merchant banking house brigg macadam. nice to see you, welcome. what i've been fascinating given the two departures yesterday, the four great offices of state in the uk, prime minister, chancellor, foreign secretary and home secretary, all held by ministers who voted to stay in the eu. they are having to sell a plan they did not vote for. it is ha rd plan they did not vote for. it is hard for a party to govern if they don't believe in their own policies, so don't believe in their own policies, so the government philosophy is perhaps in conflict with lots of the mps who were very much pro—brexit, and hard brexit. we will see what happens when this has to go through parliament. where does this leave the plan we heard about on friday, that was to secure future trade relations with the eu, particularly on goods. not much detail yet on services. we will see
the white paper. 80% of the economy is services and so much of the trade agreements made globally for services. i think they are right, at least to date they are ignoring the important bits. they have not provided the voters with some convincing economic reform that they can lean on. it is hard to be hard brexit or soft brexit or try to model your economy around, let's say, hong kong or singapore, when you have not presented a compelling argument that there will be regulatory and tax reform, that is will what —— that is what will drive growth. i do not think the voters have anything to hang their hat on. brussels is trying to figure out this mess and who they are negotiating with. dominic raab, which philippa thomas abode, is the new brexit secretary. many argue that as things progress it will be more about theresa may talking to the likes of angela merkel, emmanuel
macron michel barnier, the likes of dominic raab will be more in the background? i think so, dominic raab will be more in the background? ithink so, buti dominic raab will be more in the background? ithink so, but i think theresa may has not presented a great argument for regulatory and tax reform. look at macron in france, i do not know if he will succeed but he is trying. to be fair to her, she has a lot on her plate, doesn't she have a lot going on with regards to other things? it is tough, her days might be numbered, who knows? it has been a volatile 36 hours. let's talk about theresa may's future, you touched on it, a difficult time for her and she has to bring the cabinet together and try to deliver this promise. what will europe will brussels be looking at? they have to work out whether they would rather deal with a conservative government or somebody likejeremy corbyn, which could be very different, the labour opposition. it is a big challenge. i
do not know that anything materially will happen in the next week or so until we see the white paper and figurative theresa may will be around ina figurative theresa may will be around in a week or two. i think it is challenging times and i think the will fill the gaps. you have premier lee in berlin, negotiating of angela merkel, that is happening and the british government might miss out on an opportunity. president trump is arriving very soon. it is a big week in london! thank you, greg swenson from brick mcadam, in what will be a very busy week for everyone. let's take a look at some of the other stories making the news. hundreds of oil workers in norway have just began a strike after rejecting a proposed pay deal. equinor, which used to be known as statoil, says that so far there has been no effect on production. however oil prices have risen over concerns of the potential impact on supplies.
the japanese tech giant softbank is increasing its stake in yahoo japan through a $2 billion, three—way deal with us. firm altaba. the move will strengthen ties between softbank‘s telecoms unit — one of japan's big three telecoms firms — and the internet comany. sir martin sorrell, the man who built and ran the world's largest advertising agency, has seen off competition from his old firm, wpp, to buy dutch digital production company mediamonks. it's the first acqusition for his new company. sir martin was forced out of wpp earlier this year amid claims of misconduct. let's have a look at china now. we have not talked about it for a while, it normally dominates the headlines and it is the world's second—largest economy. it is in the midst
of a trade war with the us, and today the government's just released its latest producer inflation figures. official figures show china s producer inflation climbed to a six—month high of 4.7% injune. katie silver is in our asia business hub in singapore. what does this say about how china is faring now? domestic numbers are looking ok, the consumer price index was1.9%, looking ok, the consumer price index was 1.9%, pretty much the same as in may and firmly within the 3% target set by the people's bank of china for inflation. as we are talking about the tariffs and this trade war with the us, that gives them room to basically loosen monetary policy and maybe weather the storm. the area of an concern is in the
producers price index, goods made in china but primarily exported to the world. a six—month high, 4.7%, that isa climb world. a six—month high, 4.7%, that is a climb of .6% on last month and it was because of greater import costs. the reason this is a problem is it can be exported to the world. chinese goods are more expensive, and from the perspective of an american consumer they will have additional cost because of inflation, as well as 25% tariffs. the problem is the inflation can be transferred to other economies, and some economists see the measure is basically being a measure of future global economic inflation, it can be passed on, sally. thanks, katie, iappreciate passed on, sally. thanks, katie, i appreciate you explaining the significance of those numbers. let's see how the region did, a strong close across the board
for wall street. ina show for wall street. in a show we saw gains, basically we have optimism that the upcoming earnings season have optimism that the upcoming earnings season will provide some robust and strong news which will overs ha d ow robust and strong news which will overshadow any rise in trade tensions —— in a show we saw gains. investors are looking on the positive side, which has extended through to trade in the uk. the ftse 100 is totally unperturbed by what is going on in westminster. the pound is stable today. the ftse is so international as an index that what is going on in ten downing street is not worrying investors for now. we will talk more about all of this ina now. we will talk more about all of this in a moment, but let's hear from kim little sinner in new york. on tuesday us earnings season continues in earnest with the second quarter earnings of pepsi. it will release well before us markets open at 6am eastern, giving investors plenty of time to focus on the one key area they are most curious
about. the americans have been abandoning the fizzy, sugary drinks that well for. company is successful it could quell investor shares in pepsi investor concerns. shares in pepsi are investor concerns. shares in pepsi a re lower investor concerns. shares in pepsi are lower for the year already against its rivals coke and dr pepper snapple. joining us now is shaun port, chief investment officer at nutmeg. clearly markets are keeping a close eye on westminster with all that brexit, but there is a really busy morning of releases, talk as to what we are expecting? it is the made data, construction, manufacturing, service data, the uk economy in may. there is a decent rebound after a really soft first—quarter. it is
really soft first—quarter. it is really important what happens about interest rates, which will impact on sterling. a big day for uk data. we are seeing other stories affect emerging markets, the turkish currency having a really tough time. president erdogan had his huge inauguration ceremony yesterday but is making lots of announcements, his son—in—law will be the finance minister which caused a big fall in the currency. back to the level to the currency. back to the level to the central bank was starting to intervene and pushing up interest rates too draconian levels, the currency is incredibly weak. it has fallen by a third since 2015. before the election they were trying to pump up the election they were trying to pump up interest rates dramatically to bolster it? and it is not working because dobbin is undermining central bank independence, the president is taking control of
interest rates, which makes international investors very worried. what do you make of all the brexit stuff? we have talked about the politics and some of the economics, what do the market to make? the ftse had a good day because sterling is weaker. if you look a government bond prices, the pound, they are praising quite a bad outcome for the uk. if we moved to the soft brexit we are talking about is being more likely, the pound will bounce, probably not good for the ftse. thank you, for now. still to come... is it a bird? is it a plane? no, it's ben, flying through the sky. i take a ride on the world's biggest and fastest city—centre zip wire and find out why and how they built it. you're with business live from bbc news. glad i didn't get to do that one!
you will see that in about five minutes, it is really worth the wait. britain has a golden opportunity to switch to renewable energy without raising prices, but only if the government acts now. that's according to a new report published today by the national infrastructure commission, tasked with making recommendations about the uk's long—term infrastructure priorities. joining us from westminster is sirjohn armitt, chairman of the national infrastructure commission. good morning. we are talking about renewable energy, it is quite a u—turn about your previous recommendations, an investment in nuclear? it was, but the evidence, which is what we focus on the national infrastructure commission,
clearly shows that the cost of renewa bles clearly shows that the cost of renewables has come down significantly, the technological opportunities from smart distribution networks added to renewa bles distribution networks added to renewables means we should be able to rely on renewables as the core of our electricity supply to a much greater degree in the future than we previously believed. you call it a golden opportunity, but it is one the government has to act on now. given what is going on in downing street today, aren't you concerned your boys will be drowned out? street today, aren't you concerned your boys will be drowned ounm street today, aren't you concerned your boys will be drowned out? in a sense we are calling on the government not to act because we are saying don't rush ahead with a programme of nuclear reactors, which was the current policy, but slow down, you need only place one more order, we believe, between now and 2025, and by that time the picture will have become clearer again and it may well show at that time that they do not need to order any more beyond that one. but let's wait for
the building up of evidence in that period which would confirm what we are saying today. it is interesting. sirjohn armitt, thanks for explaining that, interesting work and lots needs to be done to get the infrastructure up and running and to make a long—term investment decisions which are frequently delayed for all sorts of reasons. so that new report from the national infrastructure commission. the uk chief tesco, charles wilson, is stepping down from the company board is stepping down from the company boa rd after is stepping down from the company board after his diagnosis for throat cancer. he has had operations, is undergoing treatment, but although the outlook is good for him he believes he needs to remain vigilant his recuperation. your're watching business live — our top story... britian's new—look cabinet is meeting in downing street as theresa may tries to press
on with her plan for post—brexit trade with the eu despite two high profile resignations. that was andrea leadsom arriving in downing street, the cabinet meeting getting under way. we will keep you right across that, stay with the bbc for the latest developments on that. a quick look at how the markets are faring. in europe we have been going for 50 minutes, fairly flat but headed in the right direction. now for something entirely different! now, we do things on this show so you don't have to. and this next story is no exception. ben donned a hard hat and safety harness to test out london's newest attraction. it's called zip now and is the world s biggest and fastest inner city zip wire. open for its second year, it's on track to get around 64,000 riders overjust a 16—week period. but how and why are they doing it, given the challenges of setting up in the middle of one of the busiest cities in the world? well, i asked its founder, barry shaverin. it is huge, yeah.
two towers. the first tower is 35 metres, the landing tower is 12 metres. they are 235 metres apart. we have also got three zip wires which is bigger than last year, we had two last year. it is quite a big undertaking, barry. where did this idea come from? why do this? just it was a random thought when i was in a central london park and i thought, why has nobody built a zip wire here? there are zip wires all over the country that are very successful and they‘ re great and i couldn't understand why i had to travel so far on why couldn't i do it here. is itjust seemed a no—brainer to me just to get a giant zip wire and stick it in london. why has nobody done this before? i found out later why nobody had done it before! it is incredibly difficult. talk me through some of the challenges you have had to overcome. so the first challenge, believe it or not, is finding a park or a space that is suitable. you need a big footprint and trees are bad. it is finding... i could count on one hand
the number of spaces in london that are suitable, just from a geographical point of view. and then of course you have to get permission. last year when i was trying to get permission people were just terrified. azip wire? are you crazy? you had to make a lot of concessions, didn't you, in terms of screening and commitments to noise and all that sort of thing. how do you deal with all of that? lambeth operate this park for the benefit of the community and we are guests here and we need to make sure we operate in a way that does not offend those people. so obviously we have screening at the back of the towers to protect local privacy. that's a no—brainer to me. it's not something i would object to. obviously the noise levels need to be monitored, health and safety is our absolute priority. it is lambeth‘s number one priority and it is also my number one priority. i look around here, you have had to spend a lot of money up front, you have had to build a tower, you have ticketing, all this equipment. it is a big risk and a lot of money upfront. yes, a massive financial commitment. we are hundreds of thousands of pounds committed before the first rider turns up.
and of course even more pressure because you're here for a finite period. you have to pack all of this up in september will subsume the window for you to make money is pretty small, isn't it? our usp is that you can do it in the city centre, you can do it in your lunch break. the flip side of that of course is that getting a permanent status in the city centre is nigh on impossible so we go with a pop—up and that does carry with it its risks, of course. so let's talk about the price because it is about £25, $30, for a ticket for an adult. it's not cheap. how do you come to that price? obviously you look at the local economy, you look at the local market, you look at competitors. we have the london eye very nearby and you look at what they are pricing. you look at the duration of the event. you look at other zip wires in the uk and i believe we are among the cheapest in zip wires in the uk. what next? where is it going next? it has been massively successful. last year was practically sold... we sold 30,000 ticket in 11 weeks. it was a 90% capacity overall i think.
fully sold out every evening, every weekend. my intention was never to run, to do this full—time, but it has become an obsession and i enjoy it and yeah, we are scaling. the demand is there. nobody else is providing what we provide. i can't give away too much but we are looking to take this to other cities. so, barry, you have made me walk up all those stairs to get the top here and i think there is only one way isn't there? so let's have a go. so standing on the edge feels a little bit different than before. the things i do for this programme. but secretly i'm very excited that i get to go down the wire so i'll see you at the other end. that one? like that? three, two, one, go! ha—ha ha!!! it is such a hardship, presenting
this programme, testing all these newfangled entertainment things. would you mind going out to do that?! there is not much dignity in doing that, but it is an amazing day. it is a temporary structure until september. if you have an idea, overcoming those obstacles, a big investment upfront but a lot for him to do. iam sure him to do. i am sure it will be busy this summer. there will be queues, even though they have to climb the stairs. sean is back, we asked at the start of the programme what you are doing to buy the world cup if you are not a fan of the football and what your company is doing? a big bump in spending injune, big televisions, barbecues, pub spending and people watching football in their office! where we work we have 28 nations are
nutmeg, every country is represented. lots of companies... people are watching the world cup and we are accommodating that, we will be in the office tomorrow. luke says i will avoid by watching wimbledon. cathy in greece say she will be watching in a bar with other brits. she says hopefully no extra time, we will miss the last bus! matt is clearly not a fan, i will be sitting on a little beach absorbed ina sitting on a little beach absorbed in a fascinating book about the evolution of modern populism. enjoy that! lots of beach messages, eve ryo ne enjoy that! lots of beach messages, everyone is on holiday. adam says he will be sitting on the beach. ijust read will be sitting on the beach. i just read that will be sitting on the beach. ijust read that one! karen says i'm closing my small independent cafe early, just speaking to the staff about what time we need to stop serving to give is enough time to watch the game. we are keeping an eye on downing
street, there is full coverage on the bbc. some noticeable differences in the weather today, for many a much fresh start compared to yesterday. it will feel quite cool into the afternoon. quite a bit of cloud through today. with that, some outbreaks of rain affecting the far north of scotland. on the satellite imagery you can see cloud streaming in from the north, covering many areas this morning. northern ireland through wales, the south—west of england, you have some clear spells. you will keep some of that sunshine into the afternoon across western areas. elsewhere, a fairamount of across western areas. elsewhere, a fair amount of cloud, some rain affecting the far north of scotland, into the afternoon the cloud should sin and break. a different feel for wimbledon, more of a breeze. temperatures only about 23 or 2a,
much fresh and cooler compared to recently. for the rest of the afternoon, the cloud will thin and break, some sunshine from time to time but temperatures much lower, 22 to 24 time but temperatures much lower, 22 to 2a across southern areas, 17 to 20 or 21 across scotland and northern ireland. this rain across scotland will turn a bit heavier around the west of scotla nd a bit heavier around the west of scotland tonight, eventually the east of northern ireland is getting heavy bursts as well. clear spells elsewhere, still quite a bit of cloud across eastern parts, temperatures very similar to last night, quite comfortable for sleeping, down to about ten or 15 degrees. wednesday morning starts rather wet for western scotland and the east of northern ireland. elsewhere, a dry day with some clouds and it will feel quite fresh and cool across northern areas. in some places we will see higher temperatures, maybe up will see higher temperatures, maybe up to 25 in manchester, birmingham and the south—west of england.
further north, 18 to 21. into the end of the week, the rain across the west of scotland and east of northern ireland is associated with a weak weather front which will clear away, high—pressure towards the south—west, so things slowly slipping away a little. quite a bit of cloud across northern parts, temperatures staying in the high teens, low 20s. across southern parts, things will warm up so by the end of the week those temperatures will get back up into the high 20s, perhaps even low 30s. goodbye. hello, it's tuesday, it's nine o'clock, i'm victoria derbyshire, welcome to the programme. after the incredible turmoil in westminster over the past 2a hours, theresa may meets her new—look cabinet in the next half hour. so what happens next? voters tell us what they want to happen now. theresa may's brexit plan seems like a compromise. she had to get on and
deliver it. i think she should tear up deliver it. i think she should tear up the chequers agreement and start over. wherever you are in the uk, tell us. feed into our conversation. what do you want to happen next? just over a year after we revealed 800 women were suing the nhs and manufcturers over mesh implants, there's going to be an immediate stop on such precedures in england. i was in my car and i phoned my husband and i said...