tv BBC Business Live BBC News July 19, 2018 8:30am-9:01am BST
this is business live from bbc news with ben bland and sally bundock. preparing for the worst... brussels tells eu governments to get ready for a no—deal brexit as political divisions deepen in the uk live from london, that's our top story on thursday 19july. the uk's new brexit secretary heads to brussels for his first talks with the eu's chief negotiator as the european commission says it's preparing for a no—deal brexit we'll be live to brussels for the latest. plus the future of transport or an expensive toy? google‘s co—founder shows off a flying car that you can learn to use in an hour. and we'll be getting the inside track on the world s largest privately—owned luxury tourist train — it's a journey that
takes in the majestic canadian rockies and the pacific northwest. and today we'd like your views on the flying car that larry page is funding. you can learn to fly it in an hour and no pilots‘ licence is required. would you climb on board — or is it an accident waiting to happen? let us know — just use the hashtag bbcbizlive. welcome to the programme. we start in brussels, where talks resume on britain's exit from the european union. uk exporters are becoming increasingly concerned about a lack of progress on a deal. and the eu is telling its members to ramp up preparations for a failure to reach one —
a risk it says is growing. big pressure then on britain's new brexit secretary, dominic raab, who took over last week after david davis who resigned in protest over the government's plans. today the confederation of british industry, the uk lobby group for big business, is calling for a long—term strategy to support exporters after brexit. it warns britain's export performance has been in decline for two decades and is far outstripped by the likes of germany. there is of course a lot at stake. the eu is the uk s biggest trading partner, with almost half of all uk goods and services going there last year — worth £274 billion, or almost $360 billion. supporters of brexit argue there are huge opportunities elsewhere in the world. exports to china have soared in the last decade,
to hit a record high last year. but they are still less than a tenth of what britain sells to the eu and far less than it sells individually to germany, france or the netherlands. with us is thomas cole, head of policy and research at the uk—based pro—european organisation, open britain. good to see you, thomas. it has been at ultra was fortnight, mainly with oui’ at ultra was fortnight, mainly with our focus of attention on parliaments, on the government and to reason may. you get the feeling the mood music is changing and it is about getting ready for a no deal. both from dominic raab, the new brexit secretary and from the european commission. your thoughts on this? it is concerning with only eight months to go of the brexit negotiations and the original plan to reach a deal by october. the real
issueis to reach a deal by october. the real issue is there is an northern ireland border, trying to keep it open and the only way to keep it open and the only way to keep it open as it is today is for the uk to remain in the single market and the customs union to have no tariff on gods. others say we can keep the flow of people and goods virtually freely, but not be in the customs union, not be in the single market? i don't think there is any example of that anywhere else in the world. the eu has a different relationship with norway and turkey but they don't offer the kind of frictionless freeboard which exists today. on the possibility of there being a no deal, it wouldn't be just for trade, as we have seen from the government's own statistics, reverting to wto terms we will seek growth of less than 10% of what it ought to be on things like the
aviation sector, problems in medicines. we have heard pharmaceutical companies are looking to stockpile medicines for no deal scenario. this isn't what people anticipated in the referendum but we are where we are right now and it is concerning. it is concerning but we need to move forward somehow. how do you see progress taking place? do you see progress taking place? do you have confidence in dominic maroh 7 you have confidence in dominic maroh up? what we have seen so far from the uk government, they have tried to achieve a situation which is virtually impossible. they have tried to have all the benefits of eu membership without being an eu member. it isn't possible. for dominic raab, there will be an amount of realism when he goes into negotiations with michel barnier. there will be negotiations today. there will be negotiations today. the european commission with michel
barnier and the eu 27 members will be meeting tomorrow to discuss the uk's white paper to discuss the future relationship, which came out last week. the clock is ticking but i cannot see any movement taking place unless there is a willingness by the uk government to shift its sta nce by the uk government to shift its stance on the island border. we could be looking out a possible december european council decision. that is only three months before the uk is scheduled to leave the european union. the uk government wa nted european union. the uk government wanted the uk to take rules until the end of 2027 need to get that deal in place. thank you very much, thomas. what about these notes being drawn
up what about these notes being drawn up to prepare for the eventuality of no deal? it is 15 pages, it is sent to the other 27 member states to say, up your game because there could be a possibility of dealing with the shock of the fallout of no agreement on brexit. it is almost like a how—to guide of dealing with areas where there will be big problems. aeroplanes, there are issues about data transfer and defined a plane is stuck on a runway somewhere and what to do with more customs officials. on the border where there are lines of lorries. and also with the irish border. austria, holland and ireland are held up with the best in school with websites for small businesses to work out what would be the possible effects. the idea is to look at this quickly and say it is not definite, but it could be a reality. having, thank you very much. let's take a look at some of the other stories making the news.
google is preparing to appeal a record $5 billion eu fine over its android mobile operating system. the european commission says the firm used it to illegally "cement its dominant position" in search. analysts say the fine is a mere weeks worth of revenue for the tech giant. ryanair has cancelled up to 600 flights over two days next week because of a strike by cabin crew in belgium, portugal and spain. it will affect almost 50,000 passengers who had booked to fly to or from those countries on wednesday 25 july and thursday 26 july. the chinese internet giant tencent has revealed its plans to launch its payment service wechat pay into the united states, despite the growing tensions between the two superpowers. katie silver has more for us from singapore. what do we know about the details of this plan? in the us, in some
airports and duty—free stores, but what they are trying to do is target the chinese tourist abroad. it is not about the americans humour but they are trying to tap into this market because the us is a popular destination among chinese tourists. outside of asia, the us is the number one destination and the placed chinese tourists will spend the most. about $4500 on average, each trip. the way this platform works, on their phone they can show a merchant the bar code and when it gets scanned comic comes directly out of their chinese bank account. they next want to target places chinese customers like, particularly famous restaurants and in smaller supermarkets and taxis. but it will be precarious given the current tensions between china and washington. katie, thank you very much. asian shares on thursday struggled
to hold earlier gains made after upbeat wall street earnings, as trade warjitters rattled china's stock and currency markets, with the yuan hitting fresh one—year lows. a mixed picture on the european markets. and now paul blake has the details of what's ahead on wall street today. today could be pivotal in the world of tariffs. the us commerce department is holding a public hearing on potential new tariffs on ca rs hearing on potential new tariffs on cars imported from the european union into the united states. no decision will be made today but proceedings will factor into the trump administration's decision—making. you remember donald trump has threatened the eu with car ta riffs trump has threatened the eu with car tariffs in the past and on wednesday he raised expectations with a
meeting with jean—claude juncker later this month, saying if he doesn't get his way, he could act with tremendous retribution. in the us the idea of putting tariffs on european cars is being met with resistance. european members of congress are considering a bill that would help the tariffs being considered by the white house. it could cost thousands ofjobs in the us and raise the price of imported ca rs by us and raise the price of imported cars by $6,000 and domestic cars by $2000. joining us is jane foley, senior currency strategist at rabobank. brexit, these notes that are going out both from the uk government and the european union, they had held off on doing this because they feared if they started talking about no deal as a realistic possibility it would cause jitters no deal as a realistic possibility it would causejitters in no deal as a realistic possibility it would cause jitters in the currency markets and the stock
markets? some of the jitters are already there because time is running out. most market forecasters still have their central view, an idea that a deal will be done. if market forecasters begin to change it opens up markets for a decline, specifically sterling. forecasters think there will be spiteful sterling if there is a deal, but if there is no deal, sterling could fall quite hard. are you saying that is what it will look like if there is what it will look like if there is no deal? the central view is it will hold around current levels, the pound against the dollar could fall with political uncertainties. if we have no deal, certainly against the euro we could see parity. quickly, there has been a lot of economic news out of the uk this week and it has been looking pretty good. with
this going on, we have the bank of england in august? we had inflation data earlier and the government began to think they won't hike interest rates. now there is an assumption that if the data remains firm, interest rates will go up. still to come: we'll be getting the inside track on the world s largest privately—owned luxury tourist train. it's a journey that takes in the majestic canadian rockies and the pacific northwest. you're with business live from bbc news. the company behind a huge variety of household brands including wall's ice cream, knorr soups and persil detergent has revealed that it sold less than expected in the second quarter of this year.
unilever employs more than 7000 people in the uk but earlier this year sparked controversy by moving its headquarters to the netherlands. diane wehrle is marketing and insights director. you have been looking at unilever‘s numbers? underlying sales growth is down from 3.7% in quarter one down to 2.7% in the second quarter. the vast majority of the sales growth is driven by volume growth rather than price. they are on the right track and they are working hard at cutting costs a nd and they are working hard at cutting costs and innovation. they are connected for growth strategy and it is reaping rewards. they feel they are ina is reaping rewards. they feel they are in a good position for the second half of the year. we say that
but this is a company massively exposed to brexit and it has taken the step of moving its headquarters to the netherlands, which was controversial at the time, but i would imagine those at the top of unilever will be pretty worried about how negotiations are going? currency inflation, deflation will bea currency inflation, deflation will be a big factor for them. but their volume growth is great and that is what is driving their sales growth which is very positive, rather than simply relying on price inflation. they have been hit this quarter by transactional currency movements, which has affected them undoubtedly. but over half of their business is now an emerging markets and that has seen huge growth. they are certainly, this quarter has been challenged. they say they are on track to maintain their sales forecast of between pelous three, plus 5% as a whole so we will have
to wait and see what the impact brexit will bring back. thank you very much, unilever stock is flat in london, by the way. you can read about that on the business live web page and also that dvds are not dying out which is good news for me, who doesn't like to adopt new technology. you're watching business live. our top story: brussels tells eu governments to get ready for a no—deal brexit as political divisions deepen in the uk. the holiday season is upon us. and many people will be hunting for something more spectacular than lying on a beach on a sunlounger. nothing wrong with that! i love it when i get a chance. that's led to an explosion in companies offering less traditional holidays.
one of them is rocky mountaineer, which is a tour company specialising in luxury train travel in the canadian rockies and pacific north west. it was started in 1990 and bills itself as the world's biggest privately owned luxury train company. it draws customers from around the world with a third of travellers coming from the us. there's also a strong showing from australia and the uk. but the company, like many others, is looking to china to help drive future growth. steve sammut is the president of the company and joins us now. you are not really the fat controller but you are in charge. are you familiar with the fat controller, thomas the tank engine?
ido controller, thomas the tank engine? i do have a couple of boys. you have been running this company for six yea rs been running this company for six years and there is huge growth in these alternative holidays. tell us a little bit more about the the rocky mountaineer because it is a holiday that is very attractive to many? we are proud of showcasing canada to the world and we offer three different main routes running through western canada. all of them running through the rocky mountains and they all day like tours so you are on board for a few days. overnight then in a hotel them back on the train again. spectacular views, wonderful service, top—notch equipment, wonderful cuisine. but you equipment, wonderful cuisine. but y°u pay equipment, wonderful cuisine. but you pay for it? you do, it works out for the golden service, so be
wonderful dome, glass ceilings, vestibule is on the back, it is about 1400 pounds. that is for a two—day trip. then the silverleaf service, a great experience but on a single level and that is under £1000. then there are other hotels and excursions. how did you end up finding yourself with rocky mountaineer, was he a background in transport, holidays, how did you get into it? we are more of a tourism company rather than a railway. we are about experience. i started in banking and! are about experience. i started in banking and i move from toronto to vancouver in 1999 and joined a ski resort which had all different holiday and leisure businesses and thatis holiday and leisure businesses and that is what got me into tourism and hospitality. we have explained where
your customers come from currently but you are looking to expand that in other areas like china, asian travellers. how successful are you being in that? we are at the front—end of doing that the markets for us, the us, australia, the uk and canada is 40% of our business. china would be brand—new and we are looking into that because we have hired offers salesperson. chinese tourism to canada is exploding. it was up 18% last year and is up similar amounts the previous years. they are the second largest international guests. you are watching the politics, the relationship between canada and the us has deteriorated since president trump came into the white house and with brexit, what are you concerned about might affect travellers and what they have to spend and whether they can come on holiday with rocky mount in ear? we are always
concerned about occurrences that create uncertainty. when people feel uncertain about what is happening in terms of the economy or their confidence in the economy and housing prices and stock markets, it can lead them to not making a discretionary spend on something like that rocky mountaineer. we worry about that when there is uncertainty and also the impact with exchange rates. steve, you had up this company doing luxury travel, or experience but i am assuming you wouldn't go to your own trains for a holiday, have a bit of a breakaway, where was the last good experience you chose? i have had so many, i am on my way to malta at the end of this week. i had a wonderful time there. my parents are from malta, i was there about 13 years ago, my wife and my children are looking forward to going back again.|j wife and my children are looking forward to going back again. i am envious, that would be nice. thank you for coming in. look up the fat
controller you look nothing like him. glad to hear it. now if you are the co—founder of google and worth $50 billion, what do you spend your money on? how about flying cars? kitty hawk is a start—up company backed by google's larry page. they invited our technology reporter dave lee to their test site outside las vegas. so here it is, the kitty hawk flyer. i'm sitting in it right now. it's very, very simple in here — just two controls, one for altitude and one for the direction of where this thing can go. around me, you'll see there are ten propellers, ten motors that keep this thing in the air. essentially, i guess you could say it's just basically a big drone that a human being can fit in. right now, they limit the speed to around six miles an hour. the battery life will keep it
going for around 20 minutes. all of that will improve in time. they certainly can go faster right now butjust to be cautious, they're keeping at around six miles an hour. in terms of when you can get one of these, the company is taking pre—orders right now. they won't tell us how much it's going to cost, but they say it is going to be comparable to a high—end electrical car, so the tens of thousands of dollars i guess you could say. but what we are sitting in, many people think is a glimpse of the future. they say their goal is to eliminate traffic, and that's a goal i think many of us can get behind. whether it will be in one of these, that remains to be seen, but it's certainly a very, very interesting, a futuristic concept. jane foley from rabobankjoins us again to discuss this.
would you have a go in of those?” don't know. you can learn in an hour. if you lived in the outback of australia, it would be great. but in central london i would be very worried. but in certain parts of the world, it would be a great solution. someone on twitter says i would let other people use that flying death trap first and then if it is still safe in ten years' time, then i will give it a try. auckland bishop said my plane from heathrow to munich couldn't take off because a lack of airspace over europe. so where will all these aircraft fit in? that kind of ties in with one of the big stories. we mentioned it early about
ryanair disruption next week but heathrow, disruption and british airways, disruption overnight? the fire alarm went off in the tower. this story is a few hours old so hopefully they have rectified. it is not what people want to hear. people will be going on holiday and they don't want to hear these stories.” have to say, it seems to happen every summer? the summer of discontent? ryanair, there was a strike last week, these are the pilots on strike, you wonder if those strikes are scheduled to cause the maximum impact to people. absolutely, it has been nice to see you today. yes, good to talk to you. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. we have got quite a bit of cloud
outside at the moment but the cloud chaddesden and break and there should be brighter if not sunny spells from time to time today. it will feel warmer for many. temperature starting to ramp up but is towards the north and the north—west where we have this weather system which will gradually move in and it will introduce more cloud as the day goes on across the north west of scotland, through northern ireland and by the evening there will be rain pushing in. before that, sunny spells and lots of sunshine across england and wales but high level cloud might make the sunshine hazy from time to time but those temperatures will rise quite quickly. the heat is building again, staying fresh and cooler in the far north—west. only 15 degrees in the western isles, otherwise 19 to 21 celsius. through this evening the rain will eventually move through
and push further south and east would into the far north—west of england, north and west wales. temperatures overnight here, 11 to 14 degrees. a warm and sticky night in the south—east and it could be uncomfortable for sleeping across the south—east into friday morning. during friday we have this rain moving south and east. not everyone will perhaps see any significant or noticeable rain, but there will be the cloud and feeling fresh across northern and western parts. down to the south—east, it remains warm and muggy. in the muggy air we could see some thunderstorms kicking off during late friday into the night time period. they will be hit and miss and some could see some torrential rain. others, nothing at all. it would be a chance and a hit and miss nature of those showers. as we go into saturday there will be a fairamount of we go into saturday there will be a fair amount of cloud, maybe a few spots of rain here and there but
otherwise there will be bright skies and sunshine breaking into the cloud. temperatures, 19 to 23 degrees. the north and the west and warming to the south—east, 26 celsius. sunday will be a mixture of quite a bit of cloud, some rain pushing into the far north—west of scotland, a few showers down the eastern side of england. temperatures on the rise, 27 to 28 degrees for england and wales. temperatures in scotland and northern ireland the high teens and the low 20s. goodbye. hello. it's thursday. it's nine o'clock. welcome to the programme. we did find that there was an
inconsistent and patchy picture across the country. one in ten girls across the country. one in ten girls across the country. one in ten girls across the uk are unable to afford sanitary products. campaigners say having a period is leading to financial stress. i use socks, gloves, hats, anything. tissue. if it is the summer, socks. anything. you don't rely on anyone else because you can't. plus worries that people referral units cannot attract