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tv   BBC Business Live  BBC News  August 28, 2018 8:30am-9:01am BST

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this is business live from bbc news with ben thompson and sally bundock. heading to africa with a bold message — theresa may says she wants the uk to overtake the us to become the g7‘s biggest investor in africa. live from london, that's our top story on tuesday, 28th of august. the british prime minister arrives in cape town. it's all part of an effort to boost trade after brexit. also in the programme... donald trump calls it an incredible deal. the us and mexico agree to a sweeping trade deal to revise key portions of the north american free trade agreement. but will canada fall in line? and that's given markets a boost around the world,
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so we'll look at what it could mean for global trade amid trade wars elsewhere. and turning a hobby into a business. we'll talk to one woman who hopes to make a killing from murder mysteries. and as we return to work after the holidays, we're talking commuting. today we want to know what really annoys you on the morning commute — do share your horrer stories. let us know — just use the hashtag #bbcbizlive. do let us know about that story, what really annoys you. a lot of you in touch of us already, with things like music played on mobile phones without headphones. more on that later. welcome to the programme. britain's prime minister theresa may is expected to say she wants the uk to overtake the us, becoming the g7‘s biggest
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in africa by 2022. mrs may has arrived in cape town and is due to meet with south africa's president cyril ramaphosa later today. her visit is part of a trip to a number of african countries in an effort to try and boost post—brexit trade. last year, trade between the two countries in goods and services was worth more than $11 billion with the uk being south africa's second—biggest trading partner within the eu. for britain, south africa is a key market. it's the continent's most industrialised country. it also has a growing middle class. credit suisse estimates it makes up more than 28% of the population. with theresa may is a delegation of 29 businesss leaders trying to showcase the uk's expertise in technology, infrastructure and financial services. annabel bishop from investec group economics joins us now from johannesburg. welcome to the programme. the uk
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prime minister coming to cape town, meeting with cyril ramaphosa, she has quite an agenda to present, what do you make of her idea the uk can overta ke do you make of her idea the uk can overtake the us as the biggest investor in africa are 2022? very good news. south africa and africa needs foreign direct investment, we needs foreign direct investment, we need to provided decent standard of living to the majority of the population and with dire poverty in south africa and sub—saharan africa, investment would be welcome. what will south africa be looking for from the uk in particular?” will south africa be looking for from the uk in particular? i think we might be looking for, hoping for, firm commitments, early days, but particularly forming relationships
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and deepening relationships and outlining issues in south africa so we can establish good lines of communication and improve lines to enable better business between the countries. she has got a big business delegation with her on her travels, she cannot officially start any trade talks until the uk has formally left the eu, but in terms of what south africa will sell to the uk, what is on the agenda from that point of view? i think south africa as a commodity exporter and obviously that is one of our key strengths, we can look into those areas, agricultural or minerals. but more importantly for us, manufactured goods and particular establishing a good strong manufacturing export base in south africa, we wish to re—industrialise oui’ africa, we wish to re—industrialise our nation and create substantial jobs and improve the lot of the majority of the population. that
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will be of key interest, i believe, in the discussions. she is going on to kenya, nigeria as well. two extremely vibrant economies are growing extremely quickly with a lot to give. yes, i think you are quite right. south africa, sub—saharan africa, and africa itself, it is obviously going to have the fastest growing population after the next couple of decades and alongside that, enormous opportunities for growth and investment and for advanced established companies looking for new markets in africa, it is extremely pertinent. thank you for your time. we will keep you up to date with theresa may's trip to africa, how she gets on. let's take a look at some of the other stories making the news. president trump says the us and mexico have reached a new trade agreement after months of difficult negotiations. it's a major step in the discussions towards a new north america free trade agreement.
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canada is due to resume trade talks with the us later today. we'll have more on this later in the programme. more from new york in a few moments. the french government is making contingency plans in case brexit negotiations fail to reach a deal. french prime minister edouard philippe says the plans will include arrangements for british citizens living in france and ensure fluid border controls after the uk exits the eu. japan's nissan has begun producing its first electric car aimed at the chinese market. working with a chinese partner, nissan is making a battery—powered version of its sylphy model, geared towards the world's biggest auto market. staying with cars and news from the big players in the market. japanese car maker toyota is to invest $500 million in uber as part of a push to develop self—driving cars. mass—producing autonomous vehicles for uber‘s ride—sharing network could help both firms catch up
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in the competitive driverless car market. katie silver is in singapore. toyota and uber have worked together already, toyota seems to be keen to make even more progress. they both sound keen for the progress and that is because the deal is being billed asa win is because the deal is being billed as a win for both. it will allow them to catch up in the very competitive self driving vehicle space. they are lagging behind at the moment competitors owned by google's parent company, alphabet. they will share the costs of research and development. uber spend... it will cut the costs. uber really needs it. we saw in march, self driving an suv hit a pedestrian and killed a pedestrian in arizona, it will allow them to get that part
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of the business back contract. kyoto shares spiked on the news and this is because analysts suggest personal car ownership is going to drop when the future takes hold —— toyota shares. in this sense, toyota have got their biggest ever? through this deal. —— biggest ever customer through this deal. i want to show you these because markets having a strong session last night all related to the news the us and mexico are reaching the trade deal. the announcement sent the s&p 500 and the nasdaq to all—time highs, and the dowjones closed above 26,000 for the first time since early february. and it was a pretty broad—based rally with manufacturing, materials and tech stocks all on the up. this is what that's done to the european numbers at the open. some optimism the deal might be
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done. how significant is it for us? nada tawfik explains from new york. central to this agreement was a breakthrough on what they wanted to happen to the automobile industry. the us and mexico have agreed that in order for vehicles to come in and be considered free of tariffs, that they would have to largely be produced in the region. 70% of auto components have to be produced in the united states and mexico. and that 40% of those components have to be made by workers who are earning more than $16 an hour. so this was really a victory for president trump because he has been trying to keep labour in the us and stop the kind of flow of companies to mexico in search of cheaper labour there. and the united states also compromised, getting rid of a key demand which was to have the deal renegotiated every five years. that was something that mexico and canada did not want.
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they didn't think it would lead to a proper kind of future for businesses to plan their investments etc. and so that was the agreement that the us and mexico reached. now, as you have rightly pointed out, canada is stilljust getting into talks this week on their part of the deal and so it certainly is premature when you think of nafta as we know it, but the united states and mexico have also said they are willing to go it alone if canada is not involved, but that said, any deal would have to be approved by the us congress and many leaders there have said this has to be a trilateral agreement. pa rt part of our team in new york. joining us now tom stevenson, investment director at fidelity international. good morning. you were listening to that. she was making the point canada is not involved at the moment but the foreign minister is going to washington today she will talk to
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officials in washington, very interesting, this development? yeah, i think it is very important canada to ta ke i think it is very important canada to take part in this because at the moment, it isjust to take part in this because at the moment, it is just a to take part in this because at the moment, it isjust a deal with mexico. it was welcomed by the markets and i think that is probably not surprising when you think there two clouds over the markets, trade tensions and the tightening of us monetary policy, rising interest rates. good news on that on friday whenj powell was pretty relaxed about the pace of interest rate rises. i think this adds to the general feeling of well—being rises. i think this adds to the generalfeeling of well—being in rises. i think this adds to the general feeling of well—being in the markets at the moment. how does this deal potentially differ to what donald trump tore up before? markets optimistic and that is sort of a reversal of the pessimism we saw when nafta hit the wall. how does it differ? partly it differs because the terms favourable to the us. if
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you look at the car manufacturing pa rt you look at the car manufacturing part of the deal, it is about cars, agriculture, energy, but cars is important, what they have agreed is 7596 important, what they have agreed is 75% of the manufacturing process will have to take part in america and that the wages of the workers need to be at least $16, so it will make it difficult for people to shift manufacturing to mexico and it will keep it in america. that is one reason. it is a bilateral deal, the us and mexico and this is what donald trump favours. he has more leveraged with the bilateral deals than the general multilateral deals. for now, thank you. have a think about what annoys you on the commute. we will have that discussion later. plenty more on that. you have not held back as ever with your opinions. thank you. still to come... find out how to turn your hobby into a business. we'll be talking to one woman who's
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making money from murder mysteries and you're with business live from bbc news. nearly one in five parents and grandparents over the age of 55 are having to accept a lower standard of living, just to help their loved ones onto the property ladder. research shows that if the so—called bank of mum and dad was a real financial institution, it would be lending out £5.7 billion in mortgages this year — that's more than one in four uk housing transactions. chris knight joins us from our newsroom — he's from legal and general that compiled the latest figures. good morning. we sort of know bank of mum and dad, parents, grandparents, having to put their hands in their pockets to help us out, but these figures show how significant it is on later life. that is right. almost one in five
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people accepting a lower standard of living as a result of giving what is now £18,000 on average to bank of mum and dad transactions. when you're talking about those figures, what impact is it having on day—to—day lives? what are they doing without? £18,000 could translate into about £1000 a year of income for example. it is a very material part of people's pension savings, in many cases people are withdrawing from pension savings and annuity income and using their house to release equity to help children and grandchildren. this is a reality that has been in play for a number of years. our younger people considering this when they plan ahead? 0ne considering this when they plan ahead? one thing we are always told that bbc news is, we are not saving enough, it adds another layer? that is right. it is an integral part of the uk housing market. one in four
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housing transactions require the support and up to a1% of transactions in london require the support. 0ne transactions in london require the support. one of the things we would like to get people to think about is the need for advice because our research shows so many people do not get any financial advice when they do these transactions. as well, it could be for those who are nearing retirement or in retirement a clever way of them using their money to avoid things like taxes later on, like inheritance tax? that's right, it's all part of the mix. the housing equity done by the over 60s, ina mix. the housing equity done by the over 60s, in a great week it helps accelerate the use of those assets to help those people in the economy. chris, very good to speak to you, chris, very good to speak to you, chris knight, from legal and general, on the bank of mum and dad. your‘re watching business live — our top story: the prime minister theresa may
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is expected to say she wants the uk to overtake the us, becoming the g7‘s biggest in africa by 2022. we are following this story for you. mrs may has arrived in cape town is due to meet with south africa's president cyril ramaphosa later today. of course her visit is part of a trip to a number of african countries in an effort to try and boost post—brexit trade. to try to strike some trade gales with the continent. —— to try to strike some trade deals. now, let's get the inside track on the ‘experience economy', because people are more and more likely to spend their cash on experiences rather than material goods. mckinsey analysis shows its the fastest growing area of consumption in the us at 6.3% between 2014 to 2016. meanwhile, here in the uk spending on overall entertainment grew by 10.2% in 2017, according to barclays. experiences can include going to restaurants, the cinema, or specific events such as murder
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mystery parties — and there's one firm that's now written over 100 murder mystery plots since it launched in 2007. red herring games started out as the fun hobby of british health care workerjo smedley — it's since become a full—time job. jo is with us now. welcome to business live. we spoke about the fa ct business live. we spoke about the fact this was your hobby, and it became a thriving business. how did that happen? was writing, have a lwa ys that happen? was writing, have always been interested in creative writing. was working in the nhs and just sort of dabbling in the background for a while, i left to have children and i think it is a lot of mothers believed to have children and think they will try something new. ithought children and think they will try something new. i thought i didn't wa nt to something new. i thought i didn't want to go back into the nhs, wondered what i could do, thought i could run a coffee shop because i
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like cooking as well, but the bank turned me down flat, had no capital to invest. —— i had no capital. and then my friends said, you've been writing these as a hobby for friends, family because coupe de grace charts, why don't you try it? soi grace charts, why don't you try it? so i give it ago, found a firm in the state ‘s preferred to take my games as an author and i was selling begins on to their us platform for a couple of years —— found a phone in the usa who were prepared to take my games on as an author. but it wasn't up games on as an author. but it wasn't up to what i wanted to be, their customer base, so my friends said i should try it myself, and i did, back and 2007. haven't looked back. what goes into writing these things? that back in 2007. lots of plot twists, quite, get it? yes, it actually harder than writing a book. they are very different genres. it is like going from screenplay could
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do it the game writing. writing again, it is a bit like an agatha christie story. she always run servers a puzzle, so murder mystery games are like a puzzle. you have to work out what isn't important, what is not related, so a lot of red herrings and the plot. hence the name. you have to work out who has done it. a standard dinner party game would take me between 17—24 hours to write, from start to finish, and a large group script running ina finish, and a large group script running in a hotel, probably about 70 hours. that is what we are looking at now, a big event in a hotel and that is where your actual provide actors to play out the plot because of course all those in the hotel ballroom, whatever, you know... hotel ballroom, whatever, you know. . . we hotel ballroom, whatever, you know... we have written games were everybody has a character but it gets very unwieldy and you have to know exactly what you're doing so i generally go a stage or inspector for those because if you have 60 people all taking a character role... all having a good time, alcohol... gas, chaos. with a big
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event we usually have actors in and they usually take control —— yes, chaos. you get involved as a detective trying to work out who has done it, so you can ask anything. and you have organised events in all different parts of the world and had to find actors to play these parts. we were exporting from the beginning. we run events in egypt. we runa beginning. we run events in egypt. we run a big event for a load of millionaires in egypt, we did how why, an event in barcelona with local actors, they run it in barcelona and everywhere we sell our retail stuff and it is all over the world. you make it sound very easy but there was a tough patch in 2014, andi but there was a tough patch in 2014, and i don't want to dwell on it, because there were various different things, but the reason i ask, you went through the really tough bit and you have come out the other side? yes, and when you go to a lot of these big business networking events i think sometimes all these millionaires, some have been romped
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once, twice, serially bankrupt, so how lucky i have come out and not gone bankrupt, but a lot of us gone through a liftoff point, usually the point where they are about to expand, so are really small, all working well, and the minute they have to take on staff, premises, new equipment, that is when you have to make the money really quickly and we had a difficult patch in 2040 where we kind of made a few business decisions to try to get the money back and fast for our big expansion and it didn't work. you have to gamble a bit, and it didn't work, but within a year of trading, we pulled on the purse strings, and i had to let a few staff members go, but we saw our way through, back at the other end, taking on staff again and bigger machinery again and it is all go. long—term vision. we always wa nted all go. long—term vision. we always wanted to take over the world and we are heading that way. we will keep an eye on you, jo, for sure. thank you for coming in. have you been in one of these? no. i was on a train
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trip recently, though, they were hosting one, and we were not actually that reason, and i got accused of being the murderer. and we we re accused of being the murderer. and we were not even involved. you just look that sort, don't you? very shifty. in the dining room will, with the candlestick, mrs white. anyway, here's how to stay in touch! stay up—to—date with all the day's business news, as it happens, on the bbc‘s business live page. there is and analysis from our team of editors right around the globe. and we want to hear from you too. get involved, on the bbc‘s business live web page, at on twitter, we're @bbcbusiness, and you can find us on facebook at bbc money. business live, on tv and online — what you need to know, when you need to know. tom is back, as promised. we have lots to discuss. including of course
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your commute. first of all, toyota, uber, coming together, with this d riverless uber, coming together, with this driverless car attack. an interesting combination. i would just imagine even culturally there isa just imagine even culturally there is a huge clash. maybe that is true but i think car manufacturers the world over a re but i think car manufacturers the world over are desperate to get in on this sort of car sharing, which represents a really significant threat to their business. the business of individual car ownership. if we stop buying individual cars, it wouldn't feel the need to have our own, that is actually quite a threat to the car industry, and the need to get in on the replacement. and it is exactly that idea, they say all the technology is in place where you stand on the street corner, and why have to summon a man or a woman driving that when you may as well have autonomous vehicle. that com plete have autonomous vehicle. that complete the circle, doesn't it, that they have sort of wanted from the start? yes, that is what uber
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are looking at. they have been looking at autonomous vehicles for some time. they had a serious accident in arizona last year which set them back somewhat, and i think this tie—up with toyota is there a way of sharing the risk, if you like, and getting some capital as well. it being in an autonomous car means you may not have to share public transport with other people -- and being in an autonomous car. this has been some of the bugbears on your morning commute. john says stinky fit, one of those big ones. people eating their breakfast. —— stinky food. i agree. with carl, talking about loud music. people doing their make up loud music. people doing their make up as well. i never do that actually. tom, what bothers you? what used to bother me, that sort of tinny sound when people had sheep,
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not very good, earphones, and you could the leakage. but that —— when people had cheap, not very good your phones. but we should have been grateful because no people have the real thing. there was a picture of someone painting their toenails on the train. marginally better than someone clipping their toenails! laughter 0h, laughter oh, no! toenails, toe jam. this one. the growing number of people i cannot speak to as they have their ea rs cannot speak to as they have their ears on. their headphones on. some people think that is a benefit, not having to talk to people. it is a "bold top to me" sign, isn't it? try avoiding eye contact. ——. to me. ——" don't talk to me". my boys are on the train, and yes, i know it, it's nice people. —— it annoys people. that's it from business live today.
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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. hello. mostly dry day today and over the next few days it will stay dry and turn increasingly warm. in the next week, but for today, quite a bit of cloud at the moment and we haveis bit of cloud at the moment and we have is whether france situated towards the north—west introducing —— this weather front situated towards the north—west introducing rain. for the most part today, dry but quite cloudy and that rain moving into the north—west. it will last for most of the day in western scotland, the west of northern ireland. away from that, some sunshine, particularly in the north—east of scotland. this morning into the north—east of england. sunshine this afternoon in the east of scotla nd sunshine this afternoon in the east of scotland but in the west that cloud and rain thickens up. temperatures about 15—18. the rain in the far west, and in the east, england and wales, it looks try this afternoon. this afternoon, increasing amounts of sunshine developing across southern parts of
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england and down towards the channel islands as well. going through this evening, the rain in the north—west will gradually move further south and east. then we will see some showers tonight moving out of the english channel into the south—east. some of them could be on the heavy side. temperatures overnight down to about 11—14. wednesday, that area of showers will eventually clear way and that band of rain you will notice just fizzling away and it is the band of cloud moving into the south—east behind that, there will be lengthy spells of sunshine and just odd shower in the far west of scotland. temperatures similar to the day, 16—21. thursday, this higher pressure will start to move in from the southwest so actually becoming quite well established by the end of the week and with high pressure like this it essentially means it is settled, dry. you can see on thursday. that sunshine, drier weather, and temperatures
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again getting up into the high teens to the low 20s but i suspect with some light winds, more sunshine coming through and it will perhaps feel a bit more pleasant way you get that sunshine. by the end of the week, into the weekend, well, again, mostly dry. if the amount of cloud and that —— around at times but still funny spells and temperatures remaining in the high teens low 20s. it will get warmer than that as i mentioned in the next week. bye—bye. good morning, it's tuesday, it's 9am. i'm victoria derbyshire, welcome to the programme. we bring you an exclusive report from the worst refugee camp in the world — that's how aid officials describe moria camp in greece. we've been given rare access and found appalling, overcrowded conditions and deadly violence. aid workers tell us it has has led to children trying to take their own lives. we have children as young as ten
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years old who have tried suicide, and there are no child psychiatrists or psychologists on this island. the exclusive film at 9.15am. half of nhs england maternity wards turned away expectant mums last year, new figures reveal. 0ne hospital was closed to mums—to—be 33 times, mostly because there weren't enough staff. we will be looking at what is causing the crisis
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