tv BBC Business Live BBC News August 29, 2018 8:30am-9:01am BST
this is business live from bbc news, with ben thompson and sally bundock. deal or no deal — the pressure is on canada to agree to the reformed trade pact that's been brokered between the us and mexico. live from london, that's our top story on wednesday, 29th august. president trump warns canada he could go it alone with mexico — which would leave america's northern neigbour facing hefty tariffs if it fails to come onboard. also in the programme, google, facebook and twitter in the firing line — mr trump warns the firms to be very careful, amid a row over perceived bias. financial markets in europe have
been trading for half an hour and most of them are heading higher. revving up for a london listing — car market aston martin confirms plans to list on the london stock exchange. “ car —— car maker. its boss is here — we'll speak to him a little later in the programme. and working out a profit — they had just $35 left in their bank account, but they turned it into a global giant. we meet one of the founders of a sports nutrition firm that's become a multi—million dollar company, selling in more than 100 countries. hello and welcome to business live. we start in north america, where pressure has been mounting on canada to agree to a revised trade deal with the us and mexico ahead of a friday deadline. trump has warned he could proceed with a deal with mexico alone, and levy tariffs on canada if it does not come on board with the revised trade terms. canada's foreign minister, chrystia freeland, is in washington for talks — but will she agree to
the new terms of the pact? nafta, or the north american free trade agreement, is one of the biggest in the world accounting for $1 trillion in trade every year. but president trump has been unhappy with the deal, blaming it for a fall in the number of us manufacturing jobs, particuarly in the auto industry. under the new terms agreed by mexico and the us, 75% of vehicles would need to be made in north america to qualify for tax—free treatment — that's higher than the existing deal. and to discourage firms from moving production to lower wage mexico, between a0 and 45% of a car would need to be made by workers earning at least $1 per hour. that is what we know so far.
with me is christophe bondy, trade lawyer at cooley llp, former trade adviser to the canadian government. he led negotiations with canada on ceta deal. welcome. sally has run through the issues at stake. a really big day today. preliminary talks. a lot still to be done. what do you think will happen? i think canada will look of the deal on the table. this isa look of the deal on the table. this is a preliminary agreement. to determine whether certain aspects area determine whether certain aspects are a good dealfor canada. if they don't think that, they will push back and the talks may continue. what is at stake for both sides? ultimately they are close trading partners and there is a lot of money riding on this decision? canada is looking for a sensible update to the nafta. for the us, looking for a sensible update to the nafta. forthe us, canada is looking for a sensible update to the nafta. for the us, canada is its biggest foreign trading partner. 35
states have canada as their biggest single foreign market. the north american auto industry in particular is deeply integrated. to have a deal that canada is excluded from doesn't make any sense for the us from an economic point of view. the us president is looking for a victory to say he has achieved something on nafta and so is trying to put the pressure on to say he has achieved something by friday. canada feels a little bit bruised on this. a divide and conquer approach from president trump until now. we know what happened in the g7 lorik canada feels isolated. will that be weighing on the minds of canadian leaders when they go into these negotiations? canadians representing the country in these negotiations are highly skilled, highly experienced, they are adults, there are sensible. they are seeking an
outcome that would be in the best interest of the country in the long—term. ca nada's interest of the country in the long—term. canada's relationship with the united states is a lot deeper than one administration. it will go on a lot longer. that's what they will be keeping an eye on. the person leading the negotiations for canada led the negotiations for canada led the negotiations for canada europe. the minister has been doing a greatjob. this week they will continue that. they are not walking into these discussions cold. one to watch. thank you for explaining what's at stake. let's take a look at some of the other stories making the news. president trump has warned google, twitter and facebook they are "treading on troubled territory", amid a row over perceived bias. an aide said the administration was looking into the issue of regulation. google says its search engine set no political agenda and is not biased towards any political ideology.
we'll have more on this later in the programme. shares of yum china holdings has been soaring after the fast food operator rejected a buyout. the operator of kfc, pizza hut and taco bell restaurants in china, has turned down a deal from a consortium of investors that valued the company at more than $17 billion. it would have been one of asia s biggest deals this year. a new study has found that shareholders are getting increasingly fed up with the behaviour of company directors and voting against their decisions. according to the investment association, significant shareholder revolts at ftse firms jumped by 25% in the year to 31 july. the trade group said investors had "shown their teeth" on issues like pay, performance and boardroom diversity. china's biggest ride—hailing firm, didi chuxing, has issued a public apology for safety lapses, after a second passenger was murdered in three months.
didi has suspended its carpool service and says it will stop using growth to measure the firm's success and prioritise safety instead. katie silver is in singapore with more. this is just the latest in the awful events that have transpired as a result of using this app. they have now issued an apology? they have. face it is a matter of ignorance and bright. they have suspended their ride sharing service after this second killing. we know that it was a 27—year—old driver who confessed to the rape and murder of his 20—year—old passenger. they have had a previous complaint against them. today in the statement they said
that their vanity overtook their original belief. they describe it as a tragic loss of life. name—macro has had huge growth since they first launched. —— didi. they even had expansion ambitions. now they are going to reinvigorate their business model entirely. it has been called for by the chinese transport ministry. they say they need better driver vetting and perhaps a system whereby passengers can call police through the app. they may be able to share their itineraries with friends and family. it is part a of wider call for tighter regulation of these right hailing services. thank you. keeping an eye on those stories. let's look at the markets. a flat day. investors looking for a new direction. they are keeping in mind the fact that although deals are being done on trade between the likes of the us and mexico, the big
issue of china and the us is a stalemate. let's look at the european markets really quickly. london up slightly. one of the big stories from london markets is the aston martin flotation story. confirming plans to list on the london stock exchange. we have the boss with us in the studio. we will talk to him very soon. but first, here is more on what donald trump had to say about google. here is deadly. —— david gleave. he's echoing something that we have heard from several members of congress in recent months, the suggestion that some of the silicon valley giants, the people based here, the tech elites, as many refer to them, are using their power, this immense power to somehow silence the views of conservatives and instead boost liberal views they are said to hold themselves. the companies of course deny it strongly, however donald trump, in his early—morning tweets, amplified some rather anecdotal evidence, it must be said, from a conservative blog that
suggests that as much as 96% of results when you search for "trump news" were from left—leaning outlets. it's very complicated to judge how reliable that kind of information is because of course everybody gets google results tailored to them personally. many experts don't give the research much credibility at all. google certainly doesn't. but regardless of what google thinks, it does have this new problem. well, an enhanced problem on its hands and it may be facing much more scrutiny about how its results are displayed in future. the same could be said for facebook and to a lesser extent twitter. dave lee in san francisco. joining us is kathleen brooks, research director at city index. good morning. what do you make of that? this isn't new, that president
trump can have direct impact on a lot of firms and particularly the markets. but very vocal in saying what he doesn't like about google? absolutely. it goes to show for other technology stocks that there have been attacked by the left for a potentially ruining hillary clinton's campaign, and now trump and hard—core republicans are attacking them as well. going forward they will come under a lot more scrutiny, get more regulated and a larger proportion of their profits are going to have to go to the compliant element. they will end up the compliant element. they will end up like finance world after the crash in 2008, or by all of a sudden complier is‘ department had to ramped up to beat off these accusations of being biased. some experts i have talked to say this is just president trump diverted all our attention away from the headlines that i really quite damaging as faras
headlines that i really quite damaging as far as he is concerned, onto something else. let's talk about regulating google, facebook and twitter. the media willjump on that bandwagon, and therefore we are not talking about the investigation into russian meddling in the election, what is going on with his former lawyers, campaign managers etc. yeah. the trump white house and magicians are doing that. he had a lot to say about different companies. the impact is very small. investors are wiser than that, to listen to just one politician. they all have their own personal bias. you do not base your investment decision on trump. we are in a new era where a president can have a direct impact of the line of the dow jones etc is having, in one tweet? investors are getting wise to that, there is more substance beneath that? trump is saying the us markets
are at record highs because of him. however, the bond market... you may be building this now but your policies will cost a massive bust. a slowdown in us growth. it would be interesting to see what he says then. what goes up has to come down, ben. lovely to see you. it may be a cliche but it is definitely true! still to come, ff revving up for a london listing. car market aston martin confirms plans to list on the london stock exchange. its boss is here — we'll speak to him injust a few minutes. you're with business live from bbc news. british newspaper publisher johnston press's half—year revenue fell 10% after major european changes to data privacy rules dented online advertising sales. still, the publisher of the scotsman and the yorkshire post did report a pre—tax profit compared with a substantial
loss a year ago. let's get more details from our business correspondent, theo leggett. tell us a bit more about the numbers, because whenever you say the words newspaper publisher you assume they are struggling?m the words newspaper publisher you assume they are struggling? it is a cold, harsh environment for a newspaper publishers. the circulation of traditional print titles is falling. that is the long—term trend. everybody is moving into digital. it is a highly competitive environment and it is ha rd to competitive environment and it is hard to make profits. taking that into account, johnston press' latest results do not look too bad. they make a profit, including an operating profit. but you also have to ta ke operating profit. but you also have to take into account the fact that a large proportion of its pre—tax profit was made a up with a re—evaluation of the value of its bond. it is not in a sense that it is doing a lot better, it is merely
an accounting peculiarity that has helped to boost the bottom line figure. that said, one of its titles, the cut price daily the eye, has been doing very well. that has been getting plenty of sales. and on digital the company has been doing reasonably well in terms of circulation. in terms of advertising revenue, sadly not. the reason for thatis revenue, sadly not. the reason for that is because google and facebook have been changing their algorithms. for example, facebook has been given more prominence to things people post about friends and family and less to news items. that is taking a toll. revenues are down by 10%. that has to be worrying. thank you. much more on the business live page. some we re more on the business live page. some were “— more on the business live page. some were —— someone has more on the business live page. some were —— someone has been number crunching about ashton martin. it would be valued at between £4
billion and £5 billion. we talk to the boss in a second. that would put it at the top end of the ftse 250. it would be ahead of companies like travis perkins and william hill, and hot on the heels of m&s. there is also a great story about scallop wa rs also a great story about scallop wars between french and british fishermen in the channel. you're watching business live. our top story — canada is under mounting pressure to agree to a revised trade deal with the us and mexico ahead of a friday deadline. president trump has warned he could proceed with a deal with mexico alone and levy tariffs on canada if it does not come on board with the revised trade terms. luxury car maker aston martin has announced its intention to go public,
a move which will make it the first uk car—maker to be listed on the london stock exchange in years. if successful, it will cement a turnaround for the company, which has returned to profitability in the last couple of years under the leadership of chief executive andy palmer. andyjoins us in the studio now. nice to see you. welcome. good morning. way now? -- why now? we have been in a mid term turnaround plan which began in 2015. it is broken into three time phases. the first was stabilisation, basically stopped the company bleeding. the second phase was replacing the existing model line—up. and then the third phase is about widening the
portfolio. we are at the end of the second phase. we are at 7000 units, which is maximum capacity. we are opening a new facility in wales, which gives us a further 7000 to go. it seems like the right time. in ru nway it seems like the right time. in runway behind us, enough runway in front of us to make the listing attractive. —— enough runway. front of us to make the listing attractive. -- enough runway. you have turned aston martin around. i found it surprising that it was bleeding for a long time. i'm not an expert when it comes to the financial history of aston martin but it is a brand everybody knows, it is in the james bond movies. how could it not be making money?m wasn't and it wasn't free years. what it needed was a real sheik, professional management. thank you for saying that i turned it around. in fact it is we. we run a meritocracy. we have a flat management structure. the management got behind the plan. it is easy to
understand. it is seven cars in seven yea rs. understand. it is seven cars in seven years. one car every year. each car has a seven year life. cow. each car has a seven year life. copy, repeat, copy, repeat. it brings tempo to the company and as well it brings imagination. each of the cars, beautiful. that engenders a lot of energy and passion. that is what has turned the company around. we talk about it a lot when firms to their intention to list. it gives you a ccess their intention to list. it gives you access to a big funding pool, the finances you need to do other things. you want to expand your output, you want to make more cars. it also puts you under the scrutiny of shareholders. you have new responsibilities. they may not like what you do. are you prepared for that? actually, we don't need money. the plan is fully funded. all the proceeds coming from this are
secondary. we will not be consuming money. we are learning from the past. we are learning what went wrong when we would have individual owners come in and buy the company, they would invest in a car and walk away. the state you are going to sell, probably about 1 away. the state you are going to sell, probably about1 billion. that will generate four to 5 billion. who knows? we will list at least 25% of the company. the markets will determine the price. we are not there yet. we're simply today making there yet. we're simply today making the registration. i expect to publish the prospectus on the 20th of september. and then obviously pricing and listing comes after that. you were headhunted by aston martin from nissan. what are your thoughts on brexit and car manufacturing in the uk? for aston martin you are nowhere near as exposed as the likes of nissan and
toyota. if it is a hard brexit or no—deal brexit macro, what will it mean for car manufacturers in the uk? we are relatively impervious. we are an exporter. a hard brexit would tend to weaken the pound. that is good for us, i guess. we exported 25% of our cars into the eu. 30% into the united kingdom. you may have a downturn on one side but you getan have a downturn on one side but you get an upswing on the other. ferrari, for example, would be importing into the uk. it is pretty neutral. that is one of the reasons it makes it attractive as stock. if you talk about the industry as a general point of view, obviously most of the car companies based here are exporting into europe. any kind of trade tariff or indeed i think we all feared non—trade tariffs, is a concern. it will make the uk,
ta riffs concern. it will make the uk, tariffs in particular, will make it less competitive. andy, thank you for coming to talk to us. come back and see us when you see the prospectus. the 20th of september. i will make a date in the diary. thank you. in a moment we'll take a look through the business pages. but first, here's a quick reminder of how to get in touch with us. stay up—to—date with all the day's business news as it happens on the bbc‘s business live page. there's insight 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 bbc.com/business. on twitter, we are at bbc business. 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. we have been talking luxury fast ca rs. let's we have been talking luxury fast
cars. let's talk about healthy living, diet and exercise. so perhaps its no surprise that fitness supplements are increasingly popular, with one estimate suggesting the global sports nutrition market to be worth around $44 billion by 2021. north america alone accounts for over 40% share of the market, but asia—pacific is expected to witness the fastest growth from 2016 to 2021, owing to the increase in demand from countries such as india and china. with us now isjuliet barratt, chief marketing officer and co—founder of sports nutrition business grenade. nice to see you. welcome. there is a grenade on set but we shouldn't be concerned! that was your original product. you we re that was your original product. you were founded in 2010. the other side of the recession. what made you start this? we had a sports distribution business before. we we re distribution business before. we were selling other people's products. we knew what sold and didn't. we knew it was a crowded
marketplace. everything is generic. people couldn't remember what products were called. we wanted our own brand. we started buying the ip in 2006. we want our product to stand out. it didn't matter what language you spoke. you would know what it was called by the shape of the container. hence grenade. by we you are talking about you and your husband? that's right. you started with just a few dollars in the bank. you recently teamed up with a private equity company value in you at several million? that's right. we had an investment last year. it is valued at 72 million. it is the start for a grenade. something that was a hobby has turned into an obsession. you make it sound easy. i found this absolutely staggering. launched in 2010. you had $40 in your bank account by the time you invested. seven years later you get
a buyer worth 72 million. that is incredible. in seven years you have gone from nothing to 70 million. that is a huge market and when you worked out how to tap into? that's right. we are in the right space. healthy eating is a boom sector. a little bit is down to timing. but it is also down to hard work. whereas we didn't have the budgets for the big brands, we knew we had to make an impact. in ourfirst big brands, we knew we had to make an impact. in our first fitness big brands, we knew we had to make an impact. in ourfirst fitness expo we drove into the nec with it tank. that really stood out. time is against us. thank you so much for coming in. congratulations. thank 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. thanks for your company. see you soon. thanks for your company. see you soon. bye—bye. hello there. it is going to remain
mostly dry in the next few days. we have got some rain this morning. some showers are affecting the south—east of england. and some rain affecting northern and western part of england and wales from this cold front moving its way south and east. that cold front will weaken. the rain pretty much disappears. it is just a pound of cloud this afternoon. showers in the south east will disappear. this afternoon it is looking drier towards the south—east. some sunny spells. sunny spells for south east england —— south—west england, wales, northern england, scotland and northern ireland. showers in western areas. for most, it is drier. waxman temperatures getting up to 17 to 18 degrees in the north. 21 degrees in the south east. through tonight with lengthy period spells, there could
be patty missed, shallow fog. —— patchy mist. it will turn chilly. look at the temperature map. some greens and blue in the north—east of scotland. in the countryside and the north—east of scotland temperatures could be a —— as low as two to three degrees. thursday start off on a chilly night. apart from that patchy mac —— patchy mist, low cloud will clear quickly. lots of sunshine through the morning on thursday. more cloud in the afternoon. the chance of an isolated shower in northern and western areas. for most thursday will be dry. temperatures similarto thursday will be dry. temperatures similar to today. 17 to 21 degrees. towards the end of the week high pressure is dominating. we have got some weather systems moving in from the west. they are being blocked by that area of high pressure. any rain that area of high pressure. any rain that does come in will be limited to the far west. this is friday.
foremost, a dry day. there will be some sunshine through the morning. a bit more cloud into the far north and west. a bit of rain perhaps moving in. temperature wise up a little bit. 17 to 21. into the weekend temperatures rise even further. by sunday, were widely into the 20s. perhaps the mid—20s in the south east. bye— bye. hello, it's wednesday, it's 9 o'clock. i'm victoria derbyshire, good morning "your heart breaks every second". in herfirst british interview, the us mum of a nine—year—old boy who took his own life last week, because she says he was bullied for being gay, talks exclusively to us about her pain and heartbreak. do you want to know what it's like to be dead while you're still alive? lose a child. it's painful. your heart breaks every second. you can hear that full exclusive interview with leia rochelle pierce
at 10.10 this morning. have you or someoen in your family been bullied for being gay? have you or someone in your family been bullied for being gay? do share your experiences this morning. the app designed to stop you getting pregnant hasn't stopped some women getting pregnant. today, the advertising watchdog says the natural cycles app can no longer