tv BBC Business Live BBC News July 12, 2018 8:30am-9:01am BST
this is business live from bbc news with maryam moshiri and sally bundock. detail at last — theresa may's government gets ready to publish its white paper on the brexit deal it wants. but will brussels accuse it of cherry picking? live from london, that's our top story on thurday 12th july. britain's brexit plan aims to avoid a hard border in northern ireland while opening the door to global trade deals. but will brussels be impressed or will they want to change the detail? we will talk you through what is at sta ke. we will talk you through what is at stake. also in the programme: shares in the chinese tech firm zte surge as it signs a deal with the us — clearing the way for it to resume business with america.
and the markets in europe look like this. fairly flat if not a little mixed. we will talk you through the winners and losers. finding a new market for an old favourite — we'll be finding out how many once historically european cheeses are now being made here in the uk. as blenheim palace gets ready to host a dinner between president trump and uk business leaders we want to know if you were sitting next to mr trump what would you talk about? let us know — just use the hashtag bbcbizlive. a very warm welcome to the programme. keep your comments clean and then we can share them on this programme a bit later. let's start with the uk government. it is due to formally lay out its post—brexit trade plans to parliament
in the next few hours. there's still plenty of disagreement within theresa may's governing conservative party over the proposals which would cover goods once the uk leaves the european union. and in this 100 plus page document there should be more detail about what uk is looking for when it comes to the services sector. and that's hugely important because services make up almost 80% of the uk economy and will be crucial in determining how prosperous the country is after the uk leaves the eu in march. the latest figures show that in 2016 the biggest share of uk services exports went to the rest of the european union. nearly a0%. the united states bought the next biggest chunk at 21% and then it was japan at 3%. services are also crucial to the uk's public finances. the financial services sector alone paid $95.6 billion in uk taxes in the year to march 2017.
that's11% of all uk tax receipts so any fall could cut the amount the government has to spend on everything from schools and hospitals to the army. with me is professorjohn ryan, who's with brexit partners and he's also a visiting fellow at the london school of economics. thank you forjoining us. the services sector. lacking in detail on that. what are you expecting or hoping to find in the white paper?” am hoping that the city of london will be left floating in this process. there doesn't seem to be much that will help the city of london. and they think that will be a problem for the uk economy. also in this document that is going to be produced, i think there will be a difficulty with the european union actually accepting this. remember,
this 100 page document is the first step to water negotiation with the eu, and there are lots of unknowns here and until we hear the detail, it will be difficult. leaks that have been coming out have been indicating that the city of london has not been considered and then this document. and the eu will probably have some problems with this, mainly to do with ireland and the northern ireland border. what more does the city of london need to see to be able to keep positive about what the future outlook looks like? i would think what they need to see is what they need which is to be heard. some of the mechanisms that would be put in place. passporting was out the door anyway when we were leaving the european union. equivalence was an option but it seems to have been ruled out. it seems to be very general what they are discussing in this document and the relationship of the city of london with the european union, which is one of the main markets. both ways, for the european union
and the uk. as sally mentioned, i think we could have some problems in terms of revenue generation within the city of london. and there are time limitations on all of this. how do those limitations affect our bargaining power and how negotiations could go going forward? we have spent to agree is getting to this point and that is the difficulty. we have got until 0ctober difficulty. we have got until october and then the european union kicks in and national governments and institutions will start looking at this, like the european parliament. before we get there, we need some kind of deal that both sides can agree on and then the governments can examine the detail and maybe they will throw up some obstacles and maybe they will throw up some o bsta cles to and maybe they will throw up some obstacles to some of this in the future anyway. professor, thank you for talking to us. let's take a look at some of the other stories making the news. the battle for sky has intensified. comcast is raising its bid for the pay tv giant to $34 billion. the move by the owner of nbc came
less than 2a hours after 21st century fox increased its offer tojust over $32 billion. we'll have more on this story later in the programme. chip—maker broadcom says it's buying us business software company ca for almost $19 billion. the firm says the move will help it to become a world—leading infrastructure technology provider. it comes just four months after president trump blocked broadcom's $117 billion hostile bid for semiconductorfirm qualcomm, arguing it posed a threat to national security. ryanair is facing its first day of industrial action in ireland since the airline bowed to pressure from staff and recognised trade unions. the budget airline has cancelled 30 flights today between the uk and ireland. ryanair is facing further strikes in spain, portugal, italy and belgium later in the summer. papa john's founderjohn schnatter has resigned as chairman of his company's board after admitting and apologising
for using a racial slur during a may conference call. the pizza chain said 0livia kirtley would act as lead independent director, and added it would appoint a new chairman in the coming weeks. shares in the chinese technology giant zte have surged after it agreed to pay a $400 million desposit aimed at restoring its ability to trade with the us. washington had banned the manufacturer from one of its key markets after it was found to have violated sanctions against iran and north korea. katie silver is in singapore for us. is this the final chapter maybe? but zte be back in the united states?“ you are shareholder in zte you will be hoping that it is the final chapter. they one zte to pay $400 million into this kind of account, like a deposit or holding account.
if they were to violate the terms of the agreement, the us could draw on this, and then the us commerce department will order the ban to be lifted. as you say, shares surged on the news. on the hong kong stock exchange, they were up about 24% at one point, and on the shenzhen stock exchange the most they can do is 10% and they reached that limit. this is one of the last issues to be resolved. they have paid the $1 billion fine and they haven't prevented the compliance team and change the management. and this is the last thing, putting money in the holding account. critics in the us from both sides say this does not resolve the issue of national—security. they say they violate issues of nationals to be to put ina violate issues of nationals to be to put in a statement the us commerce department said it was the toughest penalty and strictest compliance regime they have ever imposed in such a case and they have defended it saying it would deter other chinese deli communications companies from doing similar things. thank you very much. that is the
latest on zte. let's look at markets in asia. after bruising session they we re in asia. after bruising session they were bouncing back today. japan up 196. were bouncing back today. japan up 1%. despite the losses overnight on wall street. let's look at europe. sky, we talked about that higher bid from comcast kabaddi 21st century fox, meaning that shares in sky are up. but another retailer under pressure, dunelm, the homes sales retailer, shares down 3%, the high street really struggling. this is how europe is doing in general. let's look ahead to wall street. and kim gittleson has the details of what's ahead on wall street today. investors will be paying attention toa investors will be paying attention to a key measure in the united states, the consumer prices index
which will be released before markets open here. most analysts expect the june meeting markets open here. most analysts expect thejune meeting of markets open here. most analysts expect the june meeting of the markets open here. most analysts expect thejune meeting of the index to reflect that prices rose at an annual rate of 2.8% in the united states, however if that reading comes in above expectations, it could worry investors. that is because if inflation is accelerating in the united states, it could force the united states central bank, the federal reserve, to accelerate the rate at which it is increasing its target federal funds rate. rate at which it is increasing its target federalfunds rate. that could increase the cost of borrowing and harm many businesses here in the united states. joining us is alpesh patel, chief executive of praefinium partners. he is here to talk through the markets. all eyes will be on the white paper, the so—called master plan from the uk to be presented later today. what are investors hoping to see in the white paper? you can discern this in broad terms. i don't think from the market's perspective it will make much of an impact. it will be a blip. we are
still not looking that far forward to next april and may and the final leaving of it. what we want as an asset management company, and we have got a place in the uk and one in europe, it would be good to know what we are trying to blame for but you have still got to get through this through parliament and the eu soi this through parliament and the eu so i can't get too excited. whatever the uk government thinks it is trying to do to help my asset management company, i can't get too excited because there are too many loops to jump through yet. from the market's perspective we are ignoring it, iam market's perspective we are ignoring it, i am afraid. we can lobby to make it easier for us. do you feel that the business lobby has been working in the sense that the chequers compromise came through, which is in a sense giving the british chamber of commerce at the institute of directors what they we re institute of directors what they were looking for, which was closer alignment, as opposed to a hard brexit? the problem we have got is
that we can lobby all we want but we know it is still a brexit. you are right, at least it isn't hard, it looks like it will be somewhere in the middle, some kind of fight, but that leads to degrees of uncertainty anyway. —— some kind of fudge. but we actually wanted to stay in and now we can't have that. what about the pound ? now we can't have that. what about the pound? i was really excited when the pound? i was really excited when the foreign secretary resigned in terms of the impact on the pound of course. it's dropped fairly sharply and now it has recovered. the drop made us more competitive and helped our exporters and it made it to be to invest. sadly it didn't last long. maybe if he could keep on resigning it would help. in terms of competitiveness and exports, it was good. i would encourage british businesses to focus on exports. thank you very much. you will be back soon to talk through the papers. lots more to come. finding a new market for an old favourite. we'll be finding out how many once
historically european cheeses are now being made here in the uk. you're with business live from bbc news. if you are planning to travel with ryanair today, listen if you are planning to travel with rya nair today, listen up if you are planning to travel with ryanair today, listen up because there could be disruption. 30 flights have been cancelled because of a strike by pilots, the first ever in ryanair‘s home market. and there are strikes threatened in spain, portugal, italy and belgium later this year. europe's biggest carrier was forced to recognise unions last year when a rostering blunder led to hundreds of cancellations. sally gethin is editor of gethin's inflight news. just talk us through what is at sta ke for just talk us through what is at stake for rya nair. just talk us through what is at stake for ryanair. this is new territory for michael 0'leary.“ stake for ryanair. this is new territory for michael o'leary. it is new territory. however there has been a period of gestation in terms of disruption with pilots going on, as you said earlier, from last year. it has been building up for some
time. although michael 0'leary and ryanair management recognise the unions at that stage, because the pilots forced their hand, nevertheless, the pilots are saying that their demands for terms and conditions and better pay have not really been fully recognised. this has been rumbling on fora long time. and ryanair would has been rumbling on fora long time. and rya nair would have has been rumbling on fora long time. and ryanair would have had plenty of time to actually anticipate the major disruption we are facing today. what kind of impact will this have on passages both in the uk and of course around europe? u nfortu nately for of course around europe? unfortunately for the uk domestic market, this will have significant impact. ryanair market, this will have significant impact. rya nair have market, this will have significant impact. ryanair have said that it is up impact. ryanair have said that it is up to 30 flights that have been cancelled. however they are offering uk passengers refunds and re—routing them on to other airlines where there is capacity and even onto ferries where there may not be
alternative capacity. good to talk to you. thank you very much. we have a huge piece of cheese onset which smells delicious. no, we don't! that is what it is! wallace and gromit moment. ijust is what it is! wallace and gromit moment. i just want to direct you to the business live page because there is plenty more news on their particularly the story that sally was touching on about retailers in the uk. dunelm and dfs shares have been sliding on the uk market. footfall in the dunelm shops was wea k footfall in the dunelm shops was weak and same share sales fell. go to our website for that story and many others. your're watching business live. our top story: the uk government
is due to formally lay out its post—brexit trade plans in the next few hours. it has been described by the government as a comprehensive vision and is aimed at ensuring global trade deals and no hard border in northern ireland. promises, promises! now we will show the financial markets to see how we are getting on. 15 minutes in and we are getting on. 15 minutes in and we are slightly higher, just treading water really. some companies bringing good news and others not so good. finding a new market for an old favourite. when you think of gouda cheese you probably think of the dutch who've been making the dairy product for hundreds of years. around the world, cheese is big business. this year global sales are expected to reach more than $130 billion. here in the uk we consume on average 10 kilograms of cheese a year — much of which is imported from europe. but more and more historically european cheeses are now also being produced in britain including by one firm called cornish gouda, which plans
to sell up to 40 tonnes of the stuff this year. i feel like we have got at least a tonne of it on the desk in the studio! we have a huge wheel of cornish gouda. with us is giel spierings, founder and cheese producer of the cornish gouda. thank you for coming in with all of your cheese. explain how your business started because it was a while ago that your parents owned a dairyfarm. while ago that your parents owned a dairy farm. yes, it was a last—minute desperate attempt to keep going. my parents moved over from holland in 1998 and in 2012! came home from college to for sale sign on the farm and i decided to do one thing about it. we all wanted to carry on farming and living where we were, and! carry on farming and living where we were, and i decided cheese would be a great option because it needs lots of litres of milk to make a kilogram of litres of milk to make a kilogram of cheese, so it was an obvious choice. we went back to holland and we learned how to make cheese and we
started making cornish gouda. you are 19? i was 17 or18 started making cornish gouda. you are 19? i was 17 or 18 when i came home from school and almost 19 when i first home from school and almost 19 when ifirst made home from school and almost 19 when i first made cheese. it was all imploding and you were the ones that came up with this idea and you struggle to get finance, didn't you? at that age banks were not that keen. not too much history at the age of 17 or 18, so borrowing money was always a struggle. we got some funding together to build a really small dairy and get started. how difficult is it to run a dairy farm right now in the current climate, the way things are? it goes up and down all the time depending on how the markets are doing. last year when butter was announced that it was healthy again, everybody started buying butter and milk prices went massively up. everybody was making more butter. but now it is in decline again. it is peaks and troughs all the time. what is the difference between this gouda and the generic stuff in the
supermarket? you give it a try and you comment on that. 0k, supermarket? you give it a try and you comment on that. ok, i will taste the cheese. farmhouse cheese is very different to your factory made cheeses. they are buying in milk from hundreds of different farms to mix it together where as we are one single cowherd, so it is all done on the farm on site. my brother grows 100% of the silage that the cows eat and they are pedigree, born and reared on ourfarm. cows eat and they are pedigree, born and reared on our farm. we do every stage of it. i can't talk because i am scoffing! it is full of flavour and very yummy. we won an award for that one at the great british cheese awards. it is special. how will you be affected by brexit? you don't export this cheese at the moment. you are worried about other farmers in the uk who might struggle. yes, it is more about the farming industry as a whole in the uk. we
don't produce food at the cheapest level. there are places in brazil and argentina who produce beef one third of the price we do. currently europe keep the border is very closed on where food can come from. not much of it can come in. when we hit a global market and we have got to start trading with everyone else... that european protection goes away? it depends on how we leave and if we remain butjust leave and if we remain butjust leave and if we remain butjust leave and do everything the same as we are doing, we can avoid that but if we go hard brexit or anything else, then we can go into the global market and compete with foreign countries producing food for much less tha n countries producing food for much less than we do. just a labour the point, pardon the pun, their labour is so much cheaper. in south america or asia. yes, and land is much cheaper. they can afford to have much more land and produce crops at a cheaper rate. labour is much less expensive. and with the logistics
that we have got nowadays, that isn't really an issue any more. if we have got to compete against foreign countries, we will show them and the uk does not produce 100% of its own food. thank you for coming on and bringing in your cheese and letting us tasted. ifinished most of that. she let half a chunk of cheese. it is that good. this bit is mine! let's get more now on the bidding warfor sky. as we mentioned comcast has raised its bid for the pay tv giant to $34—billion — just hours after 21st century fox had increased its offer.
so why is sky so important? our business editor simonjack explains. as the new pretenders, people like netflix, begin to nibble away at the distribution and home turf in places like the us, some of the established names need to get more global and get more global distribution quickly. sky is the number one european pay—tv provider with subscribers in germany, the uk, italy, austria, ireland, spain. basically on a plate in one go you get massive european distribution. that is precisely what comcast want and what 21st century fox want, and what disney want with their take—over of fox. it is a massive land grab and in the land grab, price becomes secondary to scale and thatis price becomes secondary to scale and that is why we are seeing this intense bidding warfor that is why we are seeing this intense bidding war for sky. alpesh is back. we are discussing president trump's
arrival today. he will be at blenheim palace in 0xfordshire and he will be having dinner with 150 or so business leaders. and theresa may is the host. where is your invite?” couldn't possibly comment and i would be too embarrassed if i was invited. that is harsh! we are asking the viewers what you would asking the viewers what you would ask president trump if you were sitting next to him at that black—tie dinner. what would you ask him? you ladies will know this. in business you get patronised a lot. as ladies do get patronised a lot! the thing about president trump is incredibly patronising. he was like that with the general secretary of nato. i would lean across and touch his elbow and say you are doing well for the head of a young country. you know that baby balloon? i have a gift for you. he won't know about that. he does. he is watching this.
i have got the gift for you. england baby booties for you, mr trump. when you have a pint of immigrants in your team, you can get to the world cup semifinal, i like your country. i would patronised the heck out of him and that is a good strategy in business. it is not fair for him to come and talk to business leaders... talk down to business leaders! when you are being patronised, it doesn't matter how much you need anybody. give it back to them and hold your head up high
and world leaders have not been doing that. they have been kowtowi ng. doing that. they have been kowtowing. ? ?w hite i doing that. they have been kowtowing. ??w hite i don't agree. who has stood up to him to his face? angela merkel at the nato now let's look at the tweets. you have proved your point but you are no leader a sticky end. there is a statement rather than questions.” sticky end. there is a statement rather than questions. i sayjust keep patronising him and tap him on the head. i wouldn't do that if i we re the head. i wouldn't do that if i were you! now i know why you have not been invited to dinner at blenheim palace! we will still invite you on the programme, just about. thank you so much forjoining us on about. thank you so much forjoining us on business live. more business news throughout the day on bbc news. yes, let's go and eat some more cheese now. so are you, let's be honest. thank you for your company. we will do the you tomorrow. —— we will see you tomorrow. good morning. we are going through
something of a transition in the weather in the next few moments. today and in the next few days we will see heavy and sharp showers developing and even the risk of localised flooding. high pressure is way down towards the south—west of us way down towards the south—west of us and that is just allowing more weather fronts and a bit more instability in the atmosphere to come in across the uk. today we have got showers across parts of wales, north west england and the south—west. a bit of cloud and rain across the north and the north east of scotland. into the afternoon after lunchtime, showers in south—west scotland will start to p9p up south—west scotland will start to pep up with torrential downpours expected here. heavy showers in cumbria, wales, north west england, the west midlands and into the west country. don't take the position of the showers too literally. they will be hit and miss but if you get caught in one, it will be the first
significant rainfall in over a month in some places, so really quite nasty conditions if you are caught in the showers. for most of us it is dry and fairly warm with sunshine coming through this afternoon. tonight the showers gradually easing and fizzling away and a fair amount of cloud to take us into friday morning. temperatures overnight getting down to ten or 16. on friday we do it all again because there will be cloud in the morning, thinning and breaking to give sunshine again, but also the risk of heavy and torrential downpours and thunderstorms. south—west scotland, north west england, wales and into central and southern parts of england as well. they will be hit and miss and not all of us will see them but if you do, significant rainfall and flash flooding. elsewhere dry with sunshine. into the weekend, we open the door to more atlantic weather. this low pressure is moving up towards
iceland but for northern and western parts of the uk had into the weekend that might be some cloud and some rain as well. it is still warm with some sunshine and temperatures getting up to 30 across southern areas. but in edinburgh and belfast there will be more cloud over the weekend with temperatures in the low 20s but the small chance of rain here and there. that is it from me. goodbye. hello, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. england heartbreak. it's all over after a 2—1 defeat by croatia in the world cup semifinal in russia. but what a tournament! music: don't look back in anger.