tv Business Briefing BBC News August 28, 2019 5:30am-5:46am BST
this is the business briefing. lam ben i am ben gland. —— lam ben gland. —— bland. a coalition deadline looms in italy as the economic challenges mount for any future government. a former google engineer who moved to uber has been charged with stealing trade secrets related to self—driving cars. he's pleaded not guilty. and on the markets, asian markets swung, gripped by uncertainty over the china—us trade talks. there are warnings that donald trump's unpredictability could be harming the chances
of an eventual deal. the deadline for parties in italy to form a new government is nowjust hours away. if they fail, a snap election would follow. the five star movement and the democratic party are still in talks about forming a coalition after they agreed that giuseppe conte should stay on as prime minister. all this comes at a time when europe's fourth biggest economy continues to struggle and the region is facing a slowdown. italy currently has $2.3 trillion worth of public debt, which is equivalent to 133% of its overall gdp. italian banks are most exposed to any default, but banks in france, germany and the united kingdom are also at risk.
the italian government is forecasting very moderate growth of only 0.2% for this year. it follows a recession in the second—half of 2018 — from which the country is still recovering. but a major problem for anyone in power is the country's massive youth unemployment rate which currently stands at a huge 28.i%. davide oneglia is an economist at t5 lombard. if he did go to a snap election, how much damage do you think that could do to italy's economy? not very much in fact because the italian economy has been struggling for about the last 20 years or so. so it is more a long—term structural problem that has to do with productivity and ability to generate growth. and reliance on foreign demand for most
of the rest of the eurozone and germany in particular. the fact that germany, for example, is now also suffering from lack of external and internal demand is a problem for italy, too. i don't think that a change of government will at this stage and with this, will make much ofa stage and with this, will make much of a difference. what do you think investors‘ markets will want from the new coalition if indeed the five star movement and the centre—left party ca n star movement and the centre—left party can do a deal? what will they need to do to win confidence? investors and markets are already happy that the eurozone breakup argument and topic has been taken away from broadcast networks and radios and stuff like that, social media, too. that has been probably
the most important force behind the tightening of the last couple of months because there is an understanding that five star movement and the coalition will be moderate so to speak so it will be unlikely to spark an escalation over the budget. less likely than matteo salvini. this is of importance beyond italy‘s borders given the size of its economy and the impact that any political instability or hit to the economy could have on the wider eurozone. yes, certainly italy has a massive debt, as you said. as of now, the deficit is forecast to increase unless the government does something like a sort of a fiscal
adjustment, walking back from some commitments and promises of the previous government. any new coalition will need to seek more leeway from brussels and get more and make my deficit and this will also mean an increase in the debt stock. the gdp ratio may be around 133, stock. the gdp ratio may be around i33, around i35%. but could look like a big deal because the due object area of the debt is increasing. —— trajectory. the italian economy is a big, stable economy in the end even if it is straggling and not growing. it doesn‘t look like a massive deal in the medium to short—term, especially as everyone is looking for a yield. and italian debt is still yielding a
lot because of the lyrical risk and everything that as long as you remove the risk, the risk of what are some people used to call quittaly. you are fine. thank you very much. the us department ofjustice has charged a former google engineer with the theft of trade secrets. anthony levandowski is accused of downloading thousands of files relating to self—driving technology he worked on while at google, and then going on to found his own self—driving firm — which was later acquired by uber. if convicted he faces up to 10 years injail and could be fined more than $8m. dave lee reports from san francisco. the department ofjustice alleges that in 2015 anthony levandowski downloaded 111,000 files before leaving google‘s self—driving foundation which led to its own company. it related to the critical
technology inside self—driving cars which predict and comprehends what is it outside the vehicle. he went on to find he —— fund his own company. that company was later acquired by uber but last year, the original company took cuba to court saying it knowingly and illegally took its secrets —— uber. they handed 200 million dollars of stock. this is against anthony levandowski personally. responding to the charges, his lawyers did not dispute that the files were downloaded and insisted that no trade secrets ever made their way into uber or any other company. in court on tuesday, anthony levandowski pleaded not guilty to all charges and it is now out on bail. the next hearing will ta ke out on bail. the next hearing will take place early next month. japan‘s decision to drop south korea from its list of favoured trading partners
comes into effect today in what has been an escalating trade row between the two countries. let‘s go to our asia business hub where shara njit leyl is following the story. what more can you tell us about this? essentially, japan dropping south korea from its list means a number of things. it means japanese exporters will now have to make sure their goods don‘t benefit south korea‘s military weapons industry because of —— before they can be sold seoul said they will scrap the military sharing pack. tokyo says all claims from the world war ii says we re all claims from the world war ii says were settled and essentially this whole row has been going on for
some time and it flared up injuly. japan imposed controls on things crucial to south korea‘s companies. samsung was hardest hit. they produce more than 60% of memory chips globally. we have seen semiconductor sales plunge 30% and a nalysts say semiconductor sales plunge 30% and analysts say a version — make further escalation could disrupt global supply chains as the world wrestles with the intensifying us— china trade war, for instance. it might also lead to higher prices for things like smart phones and other consumer items and it will mean things getting more expensive for you and me. now let‘s brief you on some other business stories. malaysian ex—leader najib razak‘s most significant 1mdb trial begins wednesday, centring on allegations that hundreds of millions of dollars linked to the state fund ended up in his bank account. mr razak faces charges of 21 counts of money laundering and four of abuse of power in this particular trial, all of which he denies.
a world bank tribunal has ruled in favour of mining giant glencore‘s coal mining subsidiary prodeco in colombia. the tribunal ordered the government to repay a $19 million fine that had been levied on the company for alleged breach of contract. a petition for $575m in damages was however rejected. deutsche bank, a longtime lender to donald trump, does have the president‘s tax returns. the revelation was made in a court filing. congressional democrats have requested the documents regarding donald trump and three of his children‘s business dealings. lawyers for mr trump are trying to block the subpoenas and it‘s not clear if deutsche bank will comply with the order. that‘s it for the business briefing this hour — but before we go, here are the markets.
up next — newsbriefing. we‘ll take you through ther stories making headlines in the global news media today including. we all know how frustrating a poor internet connection can be, and if it‘s bad enough in towns and cities, it‘s often worse in rural areas. but now, two of the remotest parts of the uk can boast that they‘re the best connected as superfast broadband goes live to more than 300 homes. our technology correspondent rory cellan—jones reports. it is quite a journey to reach one of the uk‘s remote communities. first you land at benbecula then you drive across the causeway to the rocky island of grim say, home to just 100 households which now have a state—of—the—art broadband connections. like many people here,
this man has a number of strings to his bow. a candlemaking business and bed and breakfast but he used to have to tell guests that they couldn‘t use his expensive satellite broadband. with fibre coming in, it has just changed that completely. now we will give our guest access to the internet straightaway and we can proudly tell them we have five minutes fast and all the rest of it. it is made a huge difference. this beautiful and incredibly remote place has the best broadband you can possibly have but it has come at a big cost in public money. now boris johnson says he wants everybody across the uk to have this by 2025. so how is that going to add up? this is the manhole where you have got the full fibre coming in... the man in charge of delivering fibre across the uk told me less tax and fewer rules will be needed to hit the target. we are telling the government right now about creating
the conditions for improved investment and to make it simpler. the prime minister is highly ambitious and so are we and we applaud that ambition. clearly, it is the pace of build to reach that which is probably bigger than any other country problems that make has ever done. rory cellan-jones, bbc news in the outer hebrides. coming up at 6:00 on breakfast, charlie stayt and louise minchin this is the briefing from bbc news. the latest headlines: the clock‘s ticking for italy‘s political parties. the president tells them form a new government or face a snap election. women who say they were sexually abused by the american financier jeffrey epstein tell a court they‘re angry he died in prison and avoided justice. now, it‘s time to look at the stories that are making the headlines in the media across the world. we begin with the financial times, and after talks of a huge merger between tobacco giants
philip morris and altria emerged, well, it looks like investors could stump them out — the companies lost $13 billion of their combined value. big money in the guardian here in the uk too — a £3.5 billion boost for education according to documents leaked to the newspaper. it includes pay rises for teachers and new free schools. vox were across a kfc store in the us going chicken—free for the day — well, for five hours at least — before all the vegan alternative to the meat sold out. it‘s an experiment with food start—up beyond meat. millennials are worst placed to cope with a recession than the generations that have gone before them. we‘ll unpick this article from axios. and futurism on why the future may soon see a cable tethering the earth to the moon if some space scientists get their way. so let‘s begin. with me is priya lakhani,
the founder and ceo of century tech. welcome to the programme. the financial times, tobacco firms having to adjust to a future where people are increasingly trying to come off cigarettes because of the health concerns and perhaps cost and some of them moving to vaping. but this consolidation, which perhaps they mean to do, and perhaps not that keen on. these are two companies that actually previously coexisted. this is a combination of two companies that split in 2008. they split because they have these growing trends in international emerging markets where people wanted to have the big brand mal brough, but in the us where they were absolutely huge and operating, they we re absolutely huge and operating, they were stifled by lots of litigations —— malboro. it is about emerging