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tv   Business Briefing  BBC News  November 25, 2019 5:30am-5:46am GMT

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this is the business briefing. i'm sally bundock. disruptor disrupted? uber finds out today if it will continue to operate in london, its biggest european market. and is the internet fracturing between china and the rest of the world? we'll take you to the splinternet to find out. and on the markets:
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the ride hailing firm uber has been in last—ditch talks to extend its licence in london, after months of turmoil over its position in its largest european market. the company's full london licence was suspended in 2018, after concerns were raised about uber‘s policy on passenger protection and driver vetting. it also comes as uber battles huge losses and growing competition. in the us it's biggest rival is lyft, though both firms are losing money. latest results for lyft showed losses of $1i63m, compared to $1.3 billion for uber. thatis that is supposed to be 1 billion there at the bottom instead of1 million, so we will fix that
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graphic. uber has also been investing in food delivery and autonomous cars, while lyft is concentrating on ride hailing. meanwhile, french company kapten was acquired by german car makers daimler and bmw. it now operates in the uk, france, portugal and switzerland, and plans to expand to 15 european cities by 2020. estonian company bolt also has uber in its sights, and it is present in 150 cities around europe, africa, asia and north america. so has uber done enough to continue to stay in london? last year, uber announced plans to go completely electric in the city by 2025, but fares would go up to fund the move. uber‘s chief executive, dara khosrowshahi said the plan supported the mayor of london's plan to make the city a healthier place to live. this is going to be an increase in price for our service and that is something that we take seriously. if they were just thinking about the health of the service we should not be increasing price, but we think it
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is increasing price for the right reasons, and ultimately this fund is going to be a very important part of having better quality air and making this a better city. anna—marie baisden, head of autos research at fitch solutions joins me now. good morning, good to see you. what do we think will happen today? it's really hard to say. we have heard uber executives say that they are very confident that the life will be extended. 0n the other hand quotes from executives at tfl are saying they are not sure either has done enough. even if it is an extension it is still going to be a temporary measure. their concerns are passenger safety and the vetting of drivers. what do they mean by that? 0ne drivers. what do they mean by that? one idea that has been floated is getting the biometrics of drivers so that they can prove that a person with the license is the person with the car. there's a lot of concern
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from tfl over passenger safety so they want to guarantee that level of safety. in terms of their dominance in london, uber is the dominant player by a long way, it has been working in london for a very long time. what do you think would happen, if this license is extended, we've mentioned some of the other players who are keen to get that market share. absolutely, and we have seen this happen another country. uber has tried to expand into other markets and it is come up against domestic competition, especially in asia, china, singapore, where it ended up selling its operations to the local player because they were so entrenched so it's very possible we could see the same happen in london. from a business model point of view, uber continuing to make pretty big losses as does its biggest rival in the us. in terms of the long—term viability of companies like uber, what are we thinking? difficult, because they
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are only going to face more and more competition. they are investing an autonomous driving and so other big carmakers. you just talked about bmw, it's likely that carmakers are going to be starting their own rideshare services to monetise their autonomous technology, so down the line you could see the likes of uber facing even more competition. things like that either eats and other parts of its business, it is not just relying on a taxi service. but then you see them facing more competition in the segments as well, they are moving to the food delivery and you have the likes of delivery coming along and other services, so it is really about trying to differentiate. — make the likes of deliveroo. when we get the news on that license, we will update you. china said it will raise penalties on violations of intellectual
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property rights in an attempt to address one of the sticking points in trade talks with the us. let's go to our asia business hub where rico hizon is following the story. give us more details on this. at this point, beijing is offering some fresh concessions to washington, as the two economic giants try to hammer out then many —— there many trade deal. this is quite a positive development on raising penalties and violations of intellectual property rights, which has been encouraging from market investors, the hang seng is up more than 1%, and all the other asian market forces are also in positive territory. china is also looking into lowering the threshold for criminal punishment for those who steal intellectual property. 0ver who steal intellectual property. over the course of the negotiations, washington has been pressuring
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beijing to commit to cracking down on ip theft and start forcing us companies to hand over their commercial secrets as a condition of doing business on the mainland. the chinese have really been tough on these key issues, but it seems like they are buckling down. the two countries have been working towards a partial trade deal and leaving the more controversial issues for later discussions. thanks very much indeed, rico hizon in singapore for us. here's a new word to emerge from the ongoing us—china trade war: splinternet. as united states walls off more of its technologies from chinese companies, it is also dividing the world wide web. as our asia business correspondent karishma vaswani reports, this is adding yet another challenge for companies trying to do business in both countries. 0ne product for china and another
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for the rest of the world. welcome to the splinternet, two digital ecosystems running side—by—side. and nothing illustrates it more than tiktok. 0wned nothing illustrates it more than tiktok. owned by a chinese company, tiktok. owned by a chinese company, tiktok now has more than half a billion users with a big chunk of its market in the us and india. the way we use tiktok outside of china is completely separate to how it's used inside the country. same at, but different networks, different censorship policies, kind of like a digital twin. but that wasn't a love for us lawmakers dominated the chinese social media company is using tiktok, its global offering, to shape what the world and americans see and do on the internet. but along with new challenges, the splinternet also presents new opportunities. you can essentially duplicate your site.
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this man built chinafy, a website that makes international websites load faster in mainland china. we replace all of this incompatible components with their chinese equivalent. instead of a youtube video, maybe i would have that hosted on youku. there's a bunch of other technical code under the surface that we essentially re—engineer and customise for the chinese environment. that's how we tackle the splinternet. it's a question the cloud industry is already grappling with. a lot of our data is stored in the club. it's a virtual warehouse for our information. but with splinternet, businesses are facing a new reality when it comes to who they hand their data to. you do see the split happening, when you say i'm going to use this for north america and western europe and so forth, but i am going to use a chinese provider
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for the china market and affiliated markets. more than virtual markets and rules, the splinternet is a separation of ideology, but the consequences are very real. is the us and china get further apart, what we could be facing is an irreversible split in how the world works, starting right here. really interesting. now let's brief you on some other business stories. the paris—based luxury group, lvmh, could be about to buy the new york—based jeweller, tiffany, for $16.7 billion. the financial times is reporting that tiffany convinced the french luxury group to raise its takeover offer by about $600m to clinch an agreement. lvmh is controlled by europe's richest man, bernard arnault, and if the deal were to go through it would be one of the biggest of his career. tesla's boss, elon musk, claims the firm has received almost 150,000 orders for
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its new pickup truck. this is despite an embarrassing hiccup at its launch, when the windows of the cybertruck shattered during a demonstration that was supposed to show their durability. tesla shares fell more than 6% after the event last week, and there were also several poor reviews. you are up—to—date on the latest business stories. over a million students face disruption from today when university lecturers and support staff begin an eight—day strike over pay, pensions and working conditions. lectures will be cancelled at around 60 universities, that's almost half of the uk's institutions. the education authorities say
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they're paying an extra £250 million into the pension scheme and have already increased pay for many of their staff this year. here's our education correspondent, lisa hampele. they are taking to the picket lines again stopping last year, more than 40,000 university staff went on strike because of changes to their pension fund. now they say there has been a lack of progress in that dispute and they are angry about workload, pay, and equality. more than half of all academics are on temporary contracts, and they say pay has fallen dramatically stopping the universities point out that paying a that it universities are doing what they can to minimise the impact to students. thousands signed
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petitions last time around calling for compensation, but few were successful. many students support staff, but they are worried. successful. many students support staff, but they are worriedlj successful. many students support staff, but they are worried. i have paid so much money for a week to be written off of my course, it's almost like, i want that money back. it happened in my underground. i had a dissertation due in six weeks which i thought affected my final marks, so to have it happen again i think is really annoying. they say they won't reschedule lectures and classes and warn of more strikes in the new year. and you can see more on that and all the mornings top stories at six o'clock on breakfast with louise minchin and dan walker. this is the briefing from bbc news. the latest headlines: pro—democracy candidates in hong kong's local elections are on course for a landslide, inflicting an overwhelming defeat on the pro—beijing establishment. days of heavy rain have left parts
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of italy and france under water destroying hundreds of homes and damaging roads. leaked documents seen by the bbc reveal how prison camps in western china are being used to brainwash the muslim uighur minority. china are being used to brainwash the muslim uighur minority. 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. it reports on the launch of the conservative party's manifesto ahead of the uk going to the polls next month. it says the party's promises are modest in a bid to hold on to voters. spain's el pais covers leaked documents that detail how china is detaining a million uighur muslims and attempting to brainwash them — the paper's among an alliance of news outlets that have worked on the investigation. sir tim berners—lee, inventor of the world wide web features in the guardian — he's calling for governments and tech companies to sign up
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to a ‘contract for the web' to safeguard people from abuse and protect their privacy. the way we work is changing, according to a study in the metro. gone is the job for life — millenials are changing jobs on average every four years. and a story we've plucked from the press in indonesia — 2000 children have been given baby chicks to take care of after officials hatched a plan to ween the youngsters off their mobiles. will it work? chickens in my home might bea will it work? chickens in my home might be a bit neglected u nfortu nately. with me is priya lakhani, who's founder and ceo of century tech. the financial times, most of the front pages in the uk today have borisjohnson on their front page, and their analysis of his manifesto, the conservative party manifesto. the financial times talks about the fa ct the financial times talks about the
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fact that this is


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