tv World Business Report BBC News January 17, 2017 5:30am-5:46am GMT
this is bbc world news, the headlines: the british prime minister is preparing to deliver a major speech on brexit. theresa may is expected to say britain will be outside the eu, but trading as freely as possible and co—operating with its neighbours. turkish police say they've captured the main suspect in the istanbul nightclub attack at new year. abdulkadir masharipov, a 34—year—old uzbek national, was arrested in a police raid on a housing complex. police have arrested the wife of omar mateen, the gunman who killed 49 people at a gay nightclub in orlando injune. reports say noor salman will be charged with obstruction of justice. the last man to leave his footprints on the moon, gene cernan, has died, aged 82. the commander of apollo 17 was one of only three people to go to the moon twice and the last to walk the lunar surface in 1972. he said it left him feeling he belonged to the universe. now for the latest financial news
with sally and world business report. business leaders and investors are braced for the british prime ministers speech as the pound continues to sink against the us dollar. and we gauge the mood among the delegates gathered in davos. with the rise of populism are the elite in retreat? welcome to world business report i'm sally bundock. in a moment i'll be talking to inga beale, the chief executive of lloyds of london who is at the world economic forum. theresa may will today deliver a highly—anticipated speech on the uk's future outside the european union. the speech will focus on global britain and how the uk can be an outward facing nation
as it seeks new post brexit relations with its trading partners. reports over the weekend suggest the british prime minister will use today's speech to signal the uk will pull out of the eu single market, although downing street described this as speculation. despite this, the pound hit its lowest level for more than three months on the reports, sterling dropping more than i% to below $1.20 before recovering slightly. the eu single market guarantees the free movement of goods, capital, services, and people but the uk government has indicated they will want to limit the movement of people as part of any brexit deal. with me is kathleen brooks, research director at city index. good morning, nice to see you. it is the most anticipated speech, probably one of the most important
in her career so far? about absolutely, and the markets are fully focused on this. it they have already priced it in almost, they're not confident about what she has to say so she will have to deliver big to turn the pound around because it's been an incredibly volatile currency in the last six months and mostly negatively. most are expecting more negativity today because if she does say what we're all expecting, brexit means brexit, what some would describe as a hard brexit, as in we are fully out as it were, and she doesn't want to have any similar deal to that of other countries, it would have a big reaction in terms of the pound? certainly it's not fully priced in what a hard brexit is and we're going to get a new reality of that ha rd going to get a new reality of that hard brexit today, but if she's going to announce we will leave the eu, leave the single market, leave the customs union, is there going to bea the customs union, is there going to be a void? in one speech she surely
can't say what will fill that and that will give investors another reason to worry, we may see further downside for the pound but the ftse, which has done well since the vote, could worry on the back of that as well. including those running businesses, big exporters, those trading with europe all the time, 50% of exports go to europe, does this give them time to prepare whether they think it's a good or bad idea to get ready for the possibility of us being completely out? it depends if they have a transition deal, that is what they hoped for, to see us through the period of negotiation. that's what the big businesses will do but if the big businesses will do but if the pound takes a dip significantly below $1 20 then she will do those exporters a favour. for the city of london, i would assume it has so many ramifications and for financial centres in europe, they will look
for a special arrangement or special deal? it seems like that but the special arrangements aren't likely to be mentioned in this speech, largely because she has to keep some of her cards behind but we know the chief negotiator from the european side has said he doesn't want a disorderly brexit and he wants european financial sectors to have access to our financial sector. it's access to our financial sector. it's a 2—way process and the europeans know keeping the financial centre of london stable in this period is as beneficial to them as us. also when you look at the politics, many in parliament are saying, hang on, there's still a way to go in terms of the legality of the whole thing? definitely, we haven't had the court ruling on article 50 so it's likely if she does say we are leaving the single market there will be cries from the opposition saying she can't do it because chances are we will get that court ruling on article 50 and she will have to put whatever plan she's going to put to europe to
the parliament. she has many constraints about what she can say, what is legal and how she packs the market, a huge balancing act. thank you for coming in. we will be right across all the reaction when she does deliver her speech later today. also on the agenda in a few hours, xijingping is also on the agenda in a few hours, xi jingping is expected to look for more inclusive trade deals as he becomes the first—ever chinese president to attend the world economic forum in davos. this year's gathering of global leaders is focusing on how policymakers should respond to the rise in populism and protectionism currently sweeping the globe. tanya beckett reports. there's a chill wind in davos this year, and i'm notjust talking about extremely low temperatures and piles of snow. the political backdrop is also pretty unforgiving. top names from the worlds of business and politics are meeting here to cut deals at a time when a backlash
against globalisation and elitism is only gathering pace. the forum's pounder says social inequality will not be reduced by raising barriers. i hope that all countries will favour open global systems, may be fairer global systems. i think we will have as a whole, as a world, as a whole, we will have a big setback if we go back to the old times of big walls around our nation states. and stepping in to champion the pro— trade message this year is chinese president xijingping. trade message this year is chinese president xi jingping. traditional protagonist, america, is keeping a low profile, allowing the world's second largest economy to take centre stage. a welcome prospect for young trade entrepreneur leila dong.
president xi coming to davos shows the world a statement that china is very willing to take the world leadership role and also working closely with other countries in terms of world security, globalisation and providing morejob opportunities. and he has a very high profile audience for his message. 0ther high profile audience for his message. other top attendees include colombian singer shakira. facebook‘s cheryl sandberg. ali barack 0bama's jack, and the imf‘s christine lagarde. but in battle to european leaders francois hollande and angela merkel are staying away. for those who feel they can tear themselves away from domestic troubles, the world economic forum will be awash with ideas and debate as to whether ever freer trade is now with ideas and debate as to whether everfreer trade is now a certainty. tonia beckett, bbc news, davos. well, let's go live to davos
and talk to one of the delegates attending, inga beale, chief executive of the insurance market lloyds of london. nice to see you again. we spoke this time last year when you were at davos. there's a very different mood this year given brexit and the outcome of the us election. yes indeed. brexit is going to be one of the topics i'm interested to learn more about today. 0bviously we're going to hear theresa may talking later. but interestingly we're still going ahead with our contingency plans, we're not going to put those on hold because i don't think we'll get any real secrets about what will be in store for certainly the city of london. so i'm here to perhaps have some meetings that will be useful in terms of where should we go to set up our subsidiary when we have to do that in the eu. and that seems to be what you and other big
institutions in london are thinking at the moment, isn't it crazy that you have to have a contingency in europe on the continent given the fa ct europe on the continent given the fact theresa may clearly is going down the hard brexit route. yes. we must bear in mind for lloyds, being a very global business, it's affecting directly about 5% of our business. so we're looking to set up a subsidiaryjust business. so we're looking to set up a subsidiary just to business. so we're looking to set up a subsidiaryjust to protect business. so we're looking to set up a subsidiary just to protect that 596, a subsidiary just to protect that 5%, not the whole thing. is she right to take this line? in terms of being quite tough? well, i think she has to be quiet on some of the france in terms of not revealing the negotiation tactics. i think for business, though, ithink negotiation tactics. i think for business, though, i think we've got to ta ke business, though, i think we've got to take our own precautions cash fronts. we are in the risk business being in insurance so we want to
make sure we're around and we have a secure future for our clients. are you concerned about this period from now until we exit and the impact it will have, the uncertainty, the volatility? yeah, it's always the uncertainty business leaders don't like and of course customers and all our policyholders don't like that either. that's why we're going to be securing our future regardless of the outcome of those negotiations. none of that means that it can't be perhaps rolled back if access to the single market can still be negotiated by the uk government. all right, chief executive of lloyds of london, inga beale, thanks for joining us live from davos. i will be back in a moment when we review all the stories in the news. cabaye. —— goodbye. elections have been called in northern ireland where the power—sharing
government has collapsed. the assembly will be dissolved later this month and the vote will be held on march the second. please be advised there is flash photography in this report by chris page. for ten years, politicians and stormont have shared power. but now the devolved government is no more and there's a big? 0ver how long it will take to rebuild relations. initially the partnership between the democratic unionist party and sinn fein appear to be something of a political miracle. 0ld enemies compromising to run northern ireland together. but there were frequent disagreements. the final row came over a financial scandal about a green energy scheme. yesterday the unlikely alliance officially fell apart, leaving the northern ireland secretary no option but to call an election to the stormont assembly. it will take place on the second of march. while it is inevitable that debate during an election period will be intense, i would strongly
encourage the political parties to conduct of this election with a view to the future of northern ireland and re—establishing a partnership government at the earliest opportunity after that poll. he'll speak about the crisis in the house of commons today. theresa may has discussed the situation with the irish prime minister enda kenny in a phone call. they said they wanted the stormont institutions to be back up the stormont institutions to be back up and running as soon as possible. the power—sharing government here at stormont has ended in a bitter breakup. the election campaign is expected to be particularly divisive. restoring devolution in northern ireland will be no easy task. chris page, bbc news, stormont. coming up at 6am on breakfast, dan walker and louise minchin will have all the day's news, business and sport. they'll also have more on theresa may's brexit speech and how she plans to proceed with plans for the uk to leave
the european union. are no the british prime minister is preparing to deliver a major speech on brexit. theresa may is expected to say britain will be outside the eu, but trading as freely as possible, and co—operating with its neighbours. turkish police say they've captured the main suspect in the istanbul nightclub attack at new year. abdul—kadir masharipov, a 34—year—old uzbek national, was arrested in a police raid on a housing complex. the last man to leave his footprints on the moon, gene cernan, has died, aged 82. the commander of apollo 17 was one of only three people to go to the moon twice — and the last to walk the lunar surface, in 1972. news review time.
the rise and fall of the british pound features on the financial times. the graph going down. it briefly dropped below the us $1.20 mark ahead of a speech later about brexit by british prime minister theresa may. she's expected to say britain will make a clean breakfrom the eu. le figaro's headline says donald trump provokes europeans. it writes thatjust days out from his inauguration, the us president—elect‘s recent comments — about nato's relevance and germany's migrant policy have dealt a blow to the transatlantic relationship. the aerospace firm, rolls—royce, has reached a £671 million settlement with international financial authorities over allegations of bribery and corruption.