tv Business Briefing BBC News September 19, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. the fed cuts rates — but not enough for president trump. he accuses chairjerome powell of having "no guts, no sense, and no vision". plus, paranoid android. huawei's latest smartphone has to make do without youtube, gmail, and google maps, as the us tries to freeze out the chinese telecoms giant. and on the markets, disappointment from investors that fed chair jerome powell is taking a cautious view over further rate cuts that has been weighing on global stock markets.
we start with the falling cost of borrowing, because the world's most powerful central bank, the us federal reserve, has cut interest rates again. the fed has lowered the range for its main interest rate by a quarter of a percent to between 1.75% and 2%. president trump has been pushing for the fed to cut rates to boost a slowing economy — and weaken the dollar to help us exporters. so was he happy? far from it. here's what he had to say on twitter... the bbc‘s samira hussain was in washington for the fed meeting and sent us this.
the federal reserve did what most people expected it to— made a small cut to us interest rates. why? well, although household spending is increasing and the unemployment rate remains low, exports and business investments have weakened. fedi chairjerome powell a trip is that wea kness to chairjerome powell a trip is that weakness to trade policy. since our last meeting with seen additional signs of weakness abroad and a resurgence of trade policy tensions, including the position of additional tariffs. the fed has no role in the formulation of trade policy, but we do take into account anything that could materially affect the economy. trade policy is determined by the white house. a white house that is a very vocal critic of the federal reserve. although we decided to cut interest rates, did very little appease us president donald trump, who believes interest rates should be cut further, even to zero. mr trump has been a very vocal critic of you and your colleagues, recently
calling you bonehead is adjuster has called you a terrible communicator. how do you respond to these criticisms? i don't. i'm not going to change my practice here today of not responding to comments or addressing comments made by elected officials. i will just addressing comments made by elected officials. i willjust say addressing comments made by elected officials. i will just say that addressing comments made by elected officials. i willjust say that i continue to believe that the independence of the federal reserve from direct political control has served the public well over time. and they assure you that my collea g u es and they assure you that my colleagues and i will continue to conduct monetary policy without consideration to political decisions. that is jerome powell responding to the question of how he should respond to president trump's tweets and comments. let's go to india now — where there has been another major blow for the lucrative vaping industry. the finance minister has announced an executive order banning the production, import and sale of electronic cigarettes because of their impact
on young people. jagdip cheema is following the story in mumbai. tell us more. that's wright, sally. india's government has banned vaping over health concerns. they are especially concerned about the younger generation who they believe are vaping as a style statement. any first—time offence is likely to cost offenders around $1400. and repeat offenders around $1400. and repeat offenders could be hit with a three year jail sentence. offenders could be hit with a three yearjail sentence. it is a huge blow for vaping giants such as philip morris international, who we re philip morris international, who were looking to expand in india. that is because the country has around 100 million smokers. but it will be music to the ears of itc, india's largest tobacco firm. its shares rose around 1% after the announcement that india's government will be banning vaping. all right, thank you. it will be interesting to
see those shows and if they move on that story later today when markets openin that story later today when markets open in the us. let's turn to huawei now. the chinese telecoms giant is launching its latest top of the range smartphones at an event in germany later. the mate 30 devices are loaded with expensive features — from superfast chips to full hd displays to high—end leica cameras — as these leaked pictures show. but there will be one major thing missing — the google software and apps most of us use all the time. the trump administration has branded huawei a threat to national security, claiming its 56 technology could be used by the chinese government for spying. claims huawei has always denied. in may, the us placed huawei on a blacklist, restricting american companies from working with it. huawei hopes to keep using google's android operating system on its phones because it's ‘open source' — free for any company to use. but the mate 30 won't be licensed for key google apps including gmail, google maps, and youtube. huawei is offering to sell its 56 technology to a non—chinese firm as a way to address security fears.
an idea its deputy chairman was pushing at a press conference in shanghai on wednesday. translation: there are some suspicions over the security of huawei's feijoo technology in the world, which i think are baseless. "sg. world, which i think are baseless. ——sg. you will always have suspicions about security when you can't get hold of that technology. but if you can have it by some commercial means and you can control it and make your own developments with it, think that will help ease people's concerns about security. dominic sunnebo is global consumer insight director at the research company kantar. welcome to the programme. this phone is being launched today in munich. and yet we make not be able to bite
in europe. that is exactly the case. lodging without google apps is a challenge for acro, a huge challenge for consumers. this is what people use on their phones day in and day out. it'll be a huge risk for big companies to actually stock these devices because they will have consumers coming back in say may have been mis— sold devices and they are not able to use the devices in a way they normally would. many who have looked into the phone and what they have heard about it, say it has been really impressive, but most consumers will not be able to get their hands on it. you are absolutely right. 0ne their hands on it. you are absolutely right. one of the things we see our kantar as people love huawei phones. the satisfaction is as good as the competition, sometimes even better. so with that there is really big demand for huawei phones. they sold more than one infour huawei phones. they sold more than one in four devices bought across europe in the last 12 months. demand historically has been there.
consumers will be very worried about not being able to access apps, and thatis not being able to access apps, and that is likely to curtail sales. this phone will have four cameras in it, similar to the new iphone as well. what think this means for huawei going forward? this us ban and the impact it will have for sales outside mainland china? huawei has always focused very much on the camera. it is pretty much leading in that arena. they have a partner with a lot of heritage and the camera space. in terms of global sales, huawei was a huge player in its home country, china, there are 1.3 early and consumers. their share is above 40% in their homeland. that helps question some of the impact as we see she fully across europe, latin america, and other regions. but those hard—core america, and other regions. but those ha rd—core huawei america, and other regions. but those hard—core huawei fans, they can get around those. they can find a way of getting the google apps on their phone, a new device. yes. there are some workarounds, there is
the potential to open the devices up to security vulnerabilities. people really wa nt to security vulnerabilities. people really want to have the device there isa really want to have the device there is a way to get google apps there. for the average person on the street, is a risk most people probably aren't willing to take the stage. dominic, good to talk to you. thank you very much. that launch happening in munich later. we will update you on more news as we here at on that phone. ——as we hear it. now let's brief you on some other business stories. british airways pilots have called off the next strike in their pay dispute, which had been scheduled for 27 september. british airways had already started cancelling flights for that day last thursday — just outside the 14—day window when the company must pay passengers compensation. the airline has said it will try to reinstate as many of the flights as possible. the governor of california has vowed to fight in the courts, after the white house stripped the state of its right to set its own vehicle emissions standards and banned other states from setting similar rules. the waiver allowed california, america's biggest state by population — to set stricter standards than the federal government.
a start—up company in paris has been testing an electric water taxi this week — with a view to launching a service as soon as next spring. the seabubbles vehicle uses wings to lift out of the water and can reach a speed of 18 knots without any noise or pollution. that is a way to get around. let us show you the financial market so you get a sense of how things are going in asia this morning on the day after that federal reserve meeting. it is the most watched event this week for global financial markets. the hang seng is bucking the trend. just to say, as well, we have a bank of england meeting later today. there is quite a lot going on in the world of central banks. and that is your business briefing.
twenty families are considering taking legal action against the government because their children are being treated as truants — when they are actually missing school due to mental health conditions. thousands of families face fines or prosecution for absences. mark ansell reports. feel sick. get a headache. feel dizzy. have panic attacks. just start breathing really heavily and turn bright red. this 14-year-old from chesterfield walks his dog to help ease his anxiety. he has been diagnosed with social anxiety disorder. it's meant that for years he has rarely been to school. teachers don't really notice how you have it, they just teachers don't really notice how you have it, theyjust think you are misbehaving or not concentrating in class. there think that you are
naughty. his mum, debbie, says she has been threatened to get funds from the school. social services have even been called to her school. i have cried. i've almost lost my job. i have run school, crying, saying can you help me? you know what to do? and they say you need a doctor's letter. we have got that, we have presented the deed. what more do we need to do? his school recognise that some of the students experience many challenges and they ta ke experience many challenges and they take the role they play in their ca re take the role they play in their care incredibly seriously. but the charity mind believes that many children like this who experience school refusal are being treated as truants. the department for education told us parents have a legal duty to ensure their child of school age attends school regularly. ijust don't school age attends school regularly. i just don't want to be, school age attends school regularly. ijust don't want to be, like, the one who has anxiety and is known for
it and everything was by want to be known as a kid who was just normal. by known as a kid who was just normal. by speaking out it will lead to more understanding and support for children experiencing school refusal. mark ansell, bbc news. this is the briefing from bbc news. the latest headlines: canada's prime ministerjustin trudeau has apologised — after time magazine uncovered a picture of him wearing brownface makeup at at party 20 years ago. saudi arabia has produced wreckage of drones and missiles which it says proves iran was involved in saturday's attacks on two oil refineries. the trump administration has revoked california's right to set its own, stricter, vehicle emission standards — setting up a legal battle. now it's time to look at the stories that are making the headlines in the media across the world. the independent leads on the eu's ultimatum: uk prime minister borisjohnson has 11
days to come up with a new brexit plan — orface a no—deal scenario. bbc online is reporting on the revelation that former uk prime minister david cameron sought help from the queen in the lead—up to 2014's scottish independence referendum. the financial times looks at the us federal reserve cutting interest rates for the second time since 2008. the move comes amid concern over trade wars and slowing global growth. the daily mail has the details on a study that shows that one sixth of the entire nhs hospital budget goes towards caring for patients with diabetes. and buzzfeed news has more on instagram's decision to block users under 18 from viewing content promoting weight loss or certain cosmetic procedures.
jane is that. lets get stuck in. let's begin with the independent. this looks at the story we mentioned earlier, the fact that the finish prime minister and the president of france —— the prime minister of fenland gave an ultimatum. and it is a tough one because they are saying that unless he comes up with a new deal proposal in 11 days the chances are that we could just crush out of the eu at the end of october. and that indicates that perhaps they do not wish to give the uk an extension if borisjohnson were to requested which the law in the uk specifies that he must. this is worrying but counter to some other reports we have seen in other newspapers. the financial times covers the dup who had a conference in dublin yesterday signalled that it is