tv BBC Business Live BBC News August 19, 2019 8:30am-9:01am BST
this is business live from bbc news with tadhg enright and ben bland. judgment day for huawei, as the tech giant faces a full ban on working with firms in the us. live from london, that's our top story on monday 19th of august. later today, washington will decide whether to extend the exisiting ban, but president trump has already made his position clear, he says he "doesn't want america to do business with huawei". also in the programme... more warnings from president trump, this time over the protests in hong kong. he warns beijing trade
talks may be jeopardised if they use a heavy hand. here's how european markets are performing so far at the beginning of this new trading week. positive territory across the board. but there are still fears of a recession. we will be looking into what these numbers mean in a few minutes. and getting fit while you travel — it's all part of the growing wellness industry. we'll be talking to one firm cashing in on the trend. and today, we want to know — what do you drink when you're avoiding alcohol? that's our question today as diageo buys into seedlip, the "distillers" of fancy nonalcoholic drinks. let us know, just use the hashtag #bbcbizlive. hello and welcome to business live. we start in the united states, where president trump says he does not want america to be doing business with huawei.
this is just as the chinese tech giant is due to be hit with a full ban on working with us firms. so how did we get to this point? in may this year, huawei was placed on the us entity list — effectively banning american firms from doing business with huawei — because of national security concerns. the move barred us companies, including google, intel and qualcomm, from working with huawei. but a few days later the us temporarily eased some of the restrictions — for instance allowing google to send through security updates for its android operating system. but this temporary exemption is due to end. there had been reports the us might extend the exemption, but president trump cast doubt on that, saying he dosn‘t want american firms to do business with huawei.
huawei is a company we may not do business with at all, and it was sort of reported the opposite today, i was surprised. we are open not to doing business with them. i don't know who gave the report. they have little sections at huawei like furniture and other things, but when you cut out sections it gets very complicated, what's being sold, what's coming in. so at this moment it looks much more like we are not going to do business, i don't want to do business at all because it is a national security threat. with me is matthew howett, principal analyst at assembly research. how serious would this be for huawei if the full ban takes effect?” think it would be a huge blow to huawei if this does end up being banned completely. they are entirely reliant on those companies like google and others in order to make smartphones that many of us have become very used to. they spend tens
of billions of dollars with these companies and those companies themselves employ tens of thousands of people. so we shouldn't underestimate the impact this could have. what about the wider effect? presumably there will a ripple effect on chip makers, semiconductor manufacturers and that sort of thing? that's it because these companies are reliant on huawei as much as huawei is on them. when we saw the band first come in, the share prices of some of the big tech companies plummeted, which was why eventually trump decided to offer this 90 day window. we also should think about the fact that huawei build many of the networks around the world, many of those countries they supply a loading up their 56 impact —— five g networks. they supply a loading up their 5g impact —— five g networks. the impact —— five g networks. the impact would be significant. in the uk, the operators here, if they want to use what we, it could cost as much as £8 billion. this started
rumbling back in may so it has given wally plenty of time to reposition and prepare and we have seen that to and prepare and we have seen that to an extent. for example they are coming up with their own operating system. so they are not reliant on android. they have been spending a lot of money and many hours into developing this new operating system to try and replace android. i suspect the last chance would be to roll this out, they don't want to do that, they still want to use the latest software coming from google because that's where the developer communities exist. how it might huawei hit back with mac what cars do they hold? ultimately it's because huawei is so embedded with these companies, the number of companies in the us that need huawei is significant. the amount of money at stake will push the us into reconsidering. this is part of that
wider trade dispute rather than the issue of security with huawei. thanks very much. let's take a look at some of the other stories making the news. president trump and white house officials have pushed back against concerns that us economic growth may be faltering. mr trump insisted the trade war with china is not hurting america — while his economic adviser larry kudlow said, "there is no recession in sight." staying with the trade war — mr trump says the ceo of apple, tim cook, has made a compelling argument to him against imposing fresh tariffs on china. mr cook argued tariffs would be unfair because apple's products, which are made in china, would be taxed, while apple's biggest competitor, samsung, would not face tariffs on their products, because they are made in south korea. japan's exports have slipped for an eighth consecutive month as chinese sales fell amid the us—china trade war. official figures show japan's exports dropped by 1.6% injuly —
compared with a year earlier. let's now talk about another warning from donald trump — this time he's warned that trade talks with china would suffer if beijing were to crack down violently on the protests in hong kong. protests have errupted in the territory since earlyjune — sparked by a controversial extradition bill that has since been suspended. monica miller is in singapore. this message from president trump comes at an interesting time. markets here are performing well and pa rt markets here are performing well and part of that is because investors are enthusiastic that these two may finally resume talks again to end this trade war. mr trump told reporters at the weekend however that any violent effort by china
that any violent effort by china that harms the protests would demonstrate negotiation. hong kong has been rocked by two months of violent purchase. organisers said over the weekend 1.7 million people turned out for a peaceful march in the rain, defying police orders and warnings from beijing to end the potus. in 1989, china deployed tanks in tiananmen square. the trade dispute between the us and china has been setting financial markets on edge which sounds of economic slowdown. mr trump economic adviser says that talks are planned over the next ten days and if they go well there may be more. monica, thank you very much. let's have a look at those market numbers in more detail. after the turbuluence of last week, we start the new trading week in positive territory. investors in asia have been taking their lead from the recovery that began on wall street on friday. sentiment was also boosted
by a decision by china's central bank to change how it sets an important interest rate, which analysts say will cut the cost of borrowing for companies. this is the picture so far today in europe. growing fears of recession are still on investors‘ minds. towards the end of last week, investors became excited by a report that germany could be poised to set aside its custom of always running balanced budgets and might borrow money to stimulate its economy as a defensive measure against a recession. let's cross to samira hussain in new york now, who's got the details of what's ahead on wall street today. the cosmetics company estee lauder will be reporting earnings. the growing demand for its skincare products like clinique and la mer will likely lead to a rise in fourth—quarter revenues. investors will be on the lookout for comments on any impacts the company is facing because of the ongoing trade war between the us and china.
investors will also be looking at potential disruptions to its asia pacific business, because of the protests in hong kong. for the rest of the week, look out for more earnings reports from retail companies like target, gap and nordstrom. and finally, also happening on wednesday, the federal reserve, america's central bank, will release minutes from their last meeting in which they made a 0.25% cut to interest rates. joining us is emma—lou montgomery, associate director of fidelity international. good morning to you. all eyes on the us central bank once again, scouring for clues in the notes we get about the latest decision. absolutely. on wednesday week get the minutes that might explaina wednesday week get the minutes that might explain a bit about the thinking behind that rate cut we had. it was the first rate cut since 2008 so that's going to be
interesting, why that decision in light of everything else going on? but that may be slightly superseded because we have got that meeting this weekend so on friday we are going to hearfrom dave powell who will be talking about the current state. that will be quite historic. we will be looking at what is coming next. the delving into minutes of the meetings and also what the market expects. when you look at all the yield curve flipping we've been talking about over the past week and what that means historically about the likelihood of a recession, what do you think investors are betting on now in terms of when the us might move on rates? i think it looks like total confusion everyone is just waiting and hoping. there is such a threat of recession but then again the retail sales figures came out in the retail sales figures came out in the us and they were not so bad. it is still so uncertain. and yet we still have all the issue around the trade war with china and this ban
potentially taking effect against huawei. and that could potentially have a ripple effect on tech stocks. this has a huge ripple effect across global markets as well because it is such a huge deal. the fact that donald trump keeps saying one thing and then you get another message coming out means that sort of uncertainty really rattles markets and effects investors. this is what has been going on now for so long that it's becoming, you feel like a stuck record, whatever the 21st century of that is! there is so much uncertainty and that is in danger of becoming almost a self—fulfilling prophecy, could we head into recession because there is just so much uncertainty and we will not know what to do? thanks very much. what is the modern version of a stuck record? what is the modern version of a stuck record ? a what is the modern version of a stuck record? a corrupt file perhaps? still to come... cruising your way into shape. we'll be speaking to the travel firm which is promising a active holiday without putting on those extra pounds.
you're with business live from bbc news. when the winner of the fortnite world championship earned millions earlier this year, people really started to take notice of the growth in e—sports. motor racing e—sports — or sim racing as it's known to that community — is also big business. our next guest, bono huis, has been sim racing since he was ten. he's the five—time formula sim racing world champion and now races for mclaren in the formula one e—sports series. hejoins us live he joins us live now. hejoins us live now. good he joins us live now. good to have you with us. what do you think is behind the surge we've seen, in the popularity, and the attention on e—sports? popularity, and the attention on e-sports? what it is all kicking off, really. getting biggerand bigger every year. it's only the
last couple of years that sim racing has really got bigger but already —— other games have been going on for quite a while. last week with fortnite, that was quite good for him, how much he won. interesting to point out the prize money getting insane. this is pretty eye watering amounts. is this done deliberately to draw people's attention to it or is it that they are still making a profit even paying out this money? abli bull. we are talking about it 110w abli bull. we are talking about it now so abli bull. we are talking about it now so it helps to put out prize money tag on that. that definitely draws attention, it is a good investment as well. they are not going to put in so much money if there is nobody watching. it brings a lot of attention as well. the viewership goes up so for them it's a good investment. a bit of a cheeky question, what's the biggest prize you have got was yellow i have won quite a bit. i a competition in
vegas, 1 million prize spot, first place was 2205k i won that race. that was pretty good. you say it so casually! i don't really like to talk about it that much. don't like to show off with something like that. but it was a good day, very happy with that. very good! well done. i wish you continued success in the world of e—sports. we are in the wrong business! this is business live. our top story. president trump says he dosn't want america to do business with huawei — as the tech giant is due to be hit with a full ban on working with us firms. let's get the inside track now on a developing part
of the tourism industry, where cruising on the high seas does not involve filling up at the ship's buffet, but also involves getting healthier. last year, 28.5 million people chose to holiday on the high seas, with more than a third of cruises touring the caribbean. but increasingly, people are choosing to spend their leisure time getting fitter rather than fatter. there were 830 million international and domestic wellness trips taken in 2017. so—called wellness tourism was worth $639 billion in 2017. that was 6.5% higher than the previous year, which was more than double the growth rate for overall tourism. so, why not combine the two? that's exactly what our next guest has done, offering "active lifestyle cruising". with us is fredy dellis, co—founder of blue world voyages. welcome. what are you about to
launch? we are ready to launch in the first quarter of 2021. we are creating a new segment in the cruise market. we are acquiring an existing vessel, which is cruising for the time being, and accommodation of up to about 1800 passengers and we will refit the vessel for our specific needs. that addresses wellness, sports and fitness. just a bigger gym, or is there more to it? more to it! first, we are cruising the world so we it! first, we are cruising the world so we discover many parts of the world. you will exercise on board the vessel on two full decks, one that will be all the support equipment with all the people that will take care of yourself, experts and so on. one will be all the fitness equipment. in the activity on sure will be of a similar nature. you will be biking, running,
golfing. i have to say, seeing the artist's impressions, hearing it how you describe it, it sounds very expensive. how much would it cost for a week on board? so, our project isa for a week on board? so, our project is a hybrid one, you have a couple of points, a0 residences that people are going to buy, that will cost for are going to buy, that will cost for a one—bedroom, £1,750,000. a2—bedroom, about £2,700,000. then the cruise side, seven increment would cost about £2900 everything included. so more than $3000. in a competitive field, when people can pick so many different active wellness holidays, that sounds like quite a hefty price tag. it is not, it is comparable to 5—star casual cruising. 2900 includes everything, all the activities to, the food and beverages and so on. why do you think there has been an uptick in
wellness tourism? most people think of holidays is time to put the feet up of holidays is time to put the feet up orjust walk around a city. or is it reflective of the fact we are a bit more time poor? we don't have the time to keep as fit as we would like monday to friday, let alone on holidays. the market is over $600 billion and growing very fast and i think people want to take care of themselves more and more. they realise it's very important to reach old age in very good shape and so on. our target market is the 35 to 65—year—old people who want an active lifestyle, take care of themselves, eat well and want to travel and discover the world at the same time. are there any particular regions of the world where you are seeing the trend of people wanting wellness holidays? i think if you look at the us market for the european market, there are a2 million people we have identified as active lifestyle people and about 5a
million in europe. that's the market we are addressing. but do they mean it? about half of gym memberships don't get used. the people who go on these holidays, will they end up fitter at the end, or do some of them say, i've had enough high intensity interval training classes, i'm just going to sit by the pool for the rest of this? on board you will have a community of people that have a common interest. in fact, i don't think you will see people that are going the other way and sitting back on their hammock and having a hamburger. there are four different restau ra nts hamburger. there are four different restaurants on board the vessel. you haven't let me on board yet! thank you very much for talking to us. singapore's 5.6 million people are one of the world's most rapidly ageing societies. the tiny city state expects a fifth of the population will be senior citizens by the year 2030. many of them are working
into their 70s and beyond, not just to stay active but also because they need the extra income. sarah toms reports. young people working at fast food joints is nothing new. but now the restau ra nts joints is nothing new. but now the restaurants are turning to an unlikely demographic. senior citizens. here in singapore, older workers like cecilia are donning aprons, wiping down tables and taking orders at chains like pizza hut and kfc. officialfigures taking orders at chains like pizza hut and kfc. official figures show a dramatic rise in the number of older workers. last year, almost 27% of singaporeans aged 65 and above were working, nearly double the rate from a decade earlier. the government is actively encouraging people in their golden years to stay in the labour force. singapore's labour crunch is tough on the services industries. millennial is before office jobs and
fewerforeign workers millennial is before office jobs and fewer foreign workers are being allowed into the country. experts say the key is persuading and educating companies about the value of older workers. this is where the government has stepped in by subsidising salaries of older workers and lower wage jobs. subsidising salaries of older workers and lower wagejobs. other incentives include retraining and gra nts to incentives include retraining and grants to redesign jobs for older workers. with all the people living longer than ever, we'll see more working seniors like cecilia in singapore next time you go for a coffee. let's have a look at some of the other business stories. emily is back with us. talking about what you drink if you are avoiding alcohol. this is after diageo has bought into seedlip, the distiller is a fancy nonalcoholic drinks. what is your
nonalcoholic drinks. what is your nonalcoholic drinks. what is your nonalcoholic drink of choice? lots of tweets on this. jenny says, cup of tweets on this. jenny says, cup of tea. always tea met a lot of people saying what it is the answer. we have had sparkling water with lime, that's from damien. darren says various australian nonalcoholic wines. slimline tonic and ice, just the tonic water by itself, leaving at the gym. so tend to go for a lime and soda. i will have to up my game! there is nothing wrong with it. it can geta there is nothing wrong with it. it can get a bit dull. it's better than a pint of coke or something like that. shall we move on? what was the other one? stamp duty. a lot of
toing and froing over this. anyone buying a house in the uk will now that you suddenly realise you've also got this extra bit to pay on top, stamp duty. there is talk of may be the chance of removing it on to sellers rather than buyers. now that seems to have gone away.” think homeowners will be thinking thank goodness for that. the idea of paying stamp duty a second time now when you sell would completely stall the market. there would be no chance of anybody selling because you don't wa nt to of anybody selling because you don't want to pay another tax. at the moment you don't pay tax when you sell your prime residents. there is capital gains tax of course. but if it's your home... if you live in the uk right now with the unscented a —— uncertainty of brexit, this would be a disincentive for people to actually say i want to sell my house. it would. something needs to be done to actually kick—start the market, i don't think that would have done it. anyway the chancellor
is saying it's not happening. rumoured than it was denied. shall we talk about the markets? we have had this concern about the need —— might yield curve flipping. an interesting piece in the new york times saying that with the stock markets recently, they have not been providing the indicators they traditionally have done. it is interesting because donald trump set his stall out by how much the market has moved since he has been in the power. in the past three years, the markets have gone up 35% but in the past three years it has barely done anything. so of late it has really been giving no indication of what's happening. i think because there is so happening. i think because there is so much turmoil, political and economic uncertainty, that the markets are up and down and all over the place. watch this space! emily, good to have you with us this morning. that's it from business live today. there will be more business news
throughout the day on the bbc live web page and on world business report. we'll see you again tomorrow. hi there, good morning. over the weekend, we had a mixture of sunny spells and showers. that theme will continue into today. if we look at the satellite this morning, you just get a sense the cloud here isjust breaking up, quite scattered across western areas — those are some clear spells. and those are just shower clouds. they are all being fed in on a north—west or westerly wind. low pressure, which we had over the weekend, that's still with us, just moving its way towards scandinavia. but through today, we will get some showers, but they will move through fairly quickly on a rather brisk wind. many of us will have some sunshine. so, let's have a look at the rest of today. some showers towards northern parts this morning. those could be heavy and thundery in north—west scotland later. a few thunderstorms also just kicking off across eastern parts of england this afternoon. as i mentioned, they will move
through fairly quickly on that westerly or north—westerly wind. temperatures today about 17 to 20 or 21 celsius. just a little bit cooler than it was over the weekend. through tonight, still some showers in scotland, northern ireland, northern parts of england. otherwise, quite a quiet night, really. there will be some late clear spells. that does mean, though, it could turn quite chilly into tomorrow morning. temperatures for many of us into single figures. but a sparkling start for most. there will be some sunshine, which will continue into the afternoon. still some showers in northern parts of england. we'll see a few more showers coming in towards western areas during tuesday. many of us, though, for much of the day, it's going to be dry with that sunshine. and temperatures similar to today, about 17 to 21, maybe 22 in the capital. for wednesday, high pressure developing across southern and eastern areas. that will keep things fairly quiet. then we've got this next weather system bringing some rain into northern and western areas on wednesday.
as that rain starts to move in, it will tend to break up a little bit. it's just moving into that area of high pressure. but there will be some wet weather for northern ireland into scotland, perhaps north west england and wales later in the day on wednesday. sunny spells towards the south east. temperatures here into the 20s. temperatures more like the mid to high teens further north and west. but that rain will ease off, and really, for the rest of the week — it's looking largely fine and settled. just look to bank holiday monday, still a way off yet, but the signs that certainly for southern areas, it could be quite warm and quite sunny. that's all from me, bye—bye.
you're watching bbc news at nine with me rachel scofield — the headlines. jeremy corbyn will say the country needs a general election in a speech this morning as he sets out labour's plans do "everything necessary" to stop the uk leaving the eu without a deal. this isn't project fear any more, these are real calculations of the impact of a no deal and the more we see that the more will come together in parliament on a cross—party basis to say that we couldn't tolerate a no deal and all the implications it has. prince andrew says he's appalled by allegations that his formerfriend, jeffrey epstein, sexually abused dozens of young girls — and finds any suggestion he'd participate in such behaviour "abhorrent".