tv BBC Business Live BBC News August 15, 2017 8:30am-9:01am BST
this is business live from bbc news with ben bland and ben thompson. a future without borders! the uk government pushes for a frictionless trade deal to help ease its transition towards a post—brexit future. live from london, that's our top story on tuesday the 15th of august. the british government has laid out it's strategy for trade with the eu — calling for a temporary customs union and a period of transition to avoid post—brexit chaos, and help businesses adjust. also in the programme donald trump puts america first — opening an investigation into whether china is stealing intellectual property from american firms. and we will keep an eye on the market, positive start to the trading day across the european
indices, reflecting a return to an appetite for risk. and also on the programme. . . and is a lack of charging points holding back growth in the electric car market? the boss of the uk‘s largest network of charging stations is here... so today we want to know: what's holding you back from going electric? if you drive — would you go electric? let us know, use the hashtag bbc biz live. hello and welcome to business live. the british prime minister theresa may has this morning, published a blueprint for future trade relations between the uk and the european union. in the first of a series of brexit papers, the government suggested creating an interim period of trade, saying one possible approach would be a temporary customs union between the uk and the eu. that means they would continue applying the same tariffs to goods from outside the union — which can then move between them without more tariffs being added.
the government's brexit committee hopes a time—limited transition period will give importers and exporters enough time to adjust to the realities of brexit. in a bid to create what it calls a "seamless and frictionless border" the government has suggested either creating a brand new arrangement that includes a new customs border... or a special partnership which would negate the need for a customs border at all. brexit secretary david davis spoke to the bbc earlier. it's a pretty simple, practical set of proposals we have put forward. primarily due have two elements, when we leave the european union we leave the customs union, will we have a transitional arrangement for a year or two that will allow not just british companies to sell into europe at european countries who
sell 60 billion more than us into the uk? with me is our business editor simonjack. it sounds very good in theory but the first thing many people will think, having your cake and eating it? this is the having your cake and eating it position paper. there are reasons this has been issued today, they want to show that they have been negotiating with each other, making progress. they want to leave the customs union but they don't wa nt the customs union but they don't want anything to change. are you out or in? technically out, but nothing much will change, the only thing that will change, if we are technically out of the customs union means the uk is at liberty to sign, negotiate and find new trade deals, as you say, having your cake and eating it. this is what boris johnson was so fond of and eu officials were not. business will probably like this, it means they will have to adjust once we find
other trade deals in place, rather than having to adjust once and again when we signed trade deals, this relies on the fact that a deal will be done, no sense that this will actually happen, we haven't started discussing trade yet. that's a really important point, let's say technically they say you are out of the customs union, you can negotiate your own trade deals, it will be very ha rd to your own trade deals, it will be very hard to see how those substantive trade talks with third—party countries can't even we still don't know the overriding relationship between the uk and the eu will be. they will say we need to see whether it's going to be tariffs, trade terms, how they will 90, tariffs, trade terms, how they will go, the customs union is a border issue, the wider issues will still be unsettled, you can't do a substantive trade deal until you know what the uk relationship with the us and we are not even in the foothills of that yet. it seems they may have hit upon something that could give a bit of a breakthrough, given how important it is for
germany in particular and the rest of europe to be able to access the uk market in terms of getting their products here and carrying on sales. the fear was if you go out of dover, one of the main ports in the uk, you see trucks rolling on and off, at the moment we are in the club you don't have to show id at the door and open your trucks, the fear was if you throw sand into that well oiled engine, you get chaos. 0n if you throw sand into that well oiled engine, you get chaos. on both sides of the input channel. i think in the order of probability, will be you agree to some sort of temporary arrangement which. that happening? the answer to that is probably yes, it is in the interests of both sides. whilst that's going on, will be be happy for the uk to negotiate and signed trade deals, probably less, and then the vexed question of who is in charge of any disputes on these things? at the moment it's the european court of justice, these things? at the moment it's the european court ofjustice, the uk is desperate to avoid the purview of that caught and they think they can do that, they may have a different
view. this is a position paper, not policy and no position paper survives first engagement with the other side i suspect they will have a lot to say. simon, for now, thank you. interesting that david davis covered a long and turbulent process , covered a long and turbulent process, i think that is the truth. simon, thank you. let's take a look at some of the other stories making the news... the latest figures out of germany show that europe's largest economy expanded by 0.6% in the second quarter of the year. economists were expecting a stronger rate of growth, but the strong euro contributed to a weakness in exports. bill gates has donated 5 percent of his fortune to an — as yet — unnamed cause. the billionaire and microsoft co—founder donated 64 million shares valued at $4.6 billion — that's according to a filing at the securities & exchange commission. it's the largest gift of microsoft shares gates has made since 2000. the boss of intel— brian krzanich has become the third business leader to stand down from donald trump's manufacturing
council following the events in cha rlottesville. neither he nor the chief executive of under armour, kevin plank, said their resignations were as a direct result of the incident, but ken frazier, the boss of the drugmaker merck said that he needed to "feel a responsibility to take a stand against intolerance and extremism." us president donald trump has asked his country's top trade official to review china's practices regarding intellectual property. it could eventually lead to the us imposing trade sanctions. the bbc‘s beijing correspondentjohn sudworth has more for us. it's interesting, very sensitive time to be doing this, at a time the us is relying on china to help deal with the north korean nuclear threat. that's right, trump himself has in the past connected to macro issues suggesting if china wants a good dealfrom the united states on
trade it needs to do more to help on those diplomatic foreign policy issues. but signing this memorandum, possibly setting in train this investigation which could lead to unilateral sanctions, the president said this was all about trade, this is him delivering on campaign promises to stand up for us jobs and in particular to hold china to account. of course china has long been accused of stealing us intellectual property as well as other trading partners because it insists on in many cases and in particular in certain strategic industries, enforcing those that wa nt to industries, enforcing those that want to come and do business here into local partnerships with local players and of course, once you're signed up to one of those, you know, your technology transfer, your intellectual property lakes across
to the chinese side. but all these been a concern and this is donald trump promising he will live up to his pledges during his campaign to do something about it. many thanks. let's ta ke let's take a look at the markets. as you can see, a bit of a return of an appetite for risk in global equities, asian shares rallying, the dollar strengthening on tuesday after a slight easing of tensions between the us and north korea. prompting investors to move back towards riskier assets which fell last week. mckay, boosted by growth figures out yesterday, the strongest japan has seen two years, the stronger dollar against the yen boosting exports. us stocks recovering from the sell—off last week, the snp by the hundred, the biggest single day percentage gain it has seen since april, technology shares including apple giving the index its biggest boost. that positive sentiment has been setting
the tone for the european markets. perhaps not a stronger performance in london, certainly on the continent, frankfurt as well reacting to the german growth figures out. let's take a look at what wall street has in store. here's michelle fleury. a lot of attention on tuesday like many days of the week will be paid to the retail sector. the big economic data of the day as the retail sales report from the department of commerce, it will measure the overall sector's performance for july and it is expected to show sales grew by 0.4% compared with last, that would be a distinct improvement on the zero growth shown injune. if improvement on the zero growth shown in june. if numbers improvement on the zero growth shown injune. if numbers come in lower than that it may prompt some more worries about the health of us retail. but investors will have earnings from one of the nation's the diy chains to mull over, home depot reporting its second—quarter results. the company has suggested the quarter got off to a strong
struts all investors will want to see that has continued. that was michelle. joining us is mike amey, managing director and portfolio manager at pimco. nice to see you, we mentioned the german story, the largest economy in europe growing by 6% of the second quarter, interesting all eyes on gdp around the world as we are trying to work out how far beyond that downturn we have come so far it doesn't leave germany? the europeans and germany in particular have taken time to get going. growth they are stuttering for a few years, seems to be on stuttering for a few years, seems to beona stuttering for a few years, seems to be on a pretty good trajectory and germany one of the stronger economies in europe, doing very well. i think it's good news, germany and the european union, the eurozone finally picking up on the upswing... why has it taken so long? the main reason, their period of maximum economic pain was later than it was for the brits and the us, ours was 2008—9, there is was 11—12,
longerfor the ours was 2008—9, there is was 11—12, longer for the recovery to ours was 2008—9, there is was 11—12, longerfor the recovery to kick ours was 2008—9, there is was 11—12, longer for the recovery to kick in there, their challenge period was more recently than ours. investors watching and analysts watching for the uk inflation figures out later. sure. uk inflation has been above where most of us would like it to be. most expectations are for about seven, the long—term aim is about to macro and we know inflation is running at a higher rate than wages which is the big challenge for the uk and hope and —— hopefully we will see a peak soon. analysts saying it will hit 3% before it falls back on the body keeps on going up. there is a challenge with forecasting the future, as we know. the bank of england has the challenges we all have. i think the main reason the bank and we would agree with that, you will see its peak around the end of this year, is normally you find when sterling fell and it fell about a year ago it takes about a year or that to come through and higher
prices that we pay for foreign goods and that is what we are seeing. for now, thank you. i know we will talk through some of the paper stories later. for now, thank you. still to come... i know we are going to talk about charging points for electric cars. some of you have been in touch, julie says a lack of charging points, the cars are silent to pedestrians, automatic cars, not manual but would like to try for environmental reasons. keep your comments coming in using the bbc business live hash tag. we'll speak to the man behind the uk's largest network of charging points for electric vehicles. but are there enough to power our demand? you're with business live from bbc news. commuters are braced for rises in railfares... within the hour, we'll find out how much prices will go up, linked to the latest rate of inflation.
the government links the annual price rise with the retail price index forjuly. we will get that figure at 9:30am. let's speak to economist bronwyn curtis. this is interesting, aside from the economic data and the economic impact of inflation it could really affect our pocket when it comes to real fa res ? affect our pocket when it comes to real fares? yes, affect our pocket when it comes to realfares? yes, an increase of three and a half percent is what we are expect in retail prices this month. a year ago it was under 2%, that's a huge jump and it's a huge jump that's a huge jump and it's a huge jump in railfares at the time that's a huge jump and it's a huge jump in rail fares at the time when the consumer is struggling. remember 60% of the economy, they have run down savings to record lows, and consumer credit is up 10% over the year. this is just consumer credit is up 10% over the year. this isjust another squeeze and it comes at really the worst possible time. we should say the
real fa re possible time. we should say the real fare increases will come into force in january real fare increases will come into force injanuary next, the worst time, wages are not keeping up, prices for most of the things still rising and as we discussed, the bank of england discussing it will go higher before it falls back. that's right, i think, higher before it falls back. that's right, ithink, if higher before it falls back. that's right, i think, if we see a peak, we are talking about a peak of 3%, the bank of england is, in october are talking about a peak of 3%, the bank of england is, in 0ctoberfor consumer prices. that means retail prices probably peaking just under 496. prices probably peaking just under 4%. if they are right, unless sterling falls and we have heard david davis talk about turbulent times ahead and usually sterling falls, that means inflation could go higher. if inflation is coming down but we have locked in those real prices at three and a half, say percent, for the next year, that seems pretty high and i wonder whether they shouldn't change the basis on which they calculate price rises in the real sector. reticular
it's a service, it has been appalling as we've heard all year. thanks for shedding light on that, and on about 45 minutes we will find out how much prices will rise on the railways. they are for specific fa res, railways. they are for specific fares, so keep an eye on that, that's at 9:30am this morning. you're watching business live — our top story: the british prime minister, theresa may, has published a blueprint for future trade relations between the uk and the european union. the government suggested creating an interim period of trade, saying that's one possible approach, would be a temporary customs union between the uk and the eu. but remember there is a lot of negotiating still to go. a quick look at how
markets are faring... we're told the future is electric — cars, vans and lorries around the world will be weaned off petrol and instead be powered by electricity. but are we ready for the revolution? there are now more than 2 million electric cars in the world. but the international energy agency predicts that number will hit 140 million by 2030, if countries are to meet paris climate agreement targets. but what about the infrastructure needed to power them all? in the uk, the biggest network of electric charging points is run by chargemaster. it works with bmw, kia, mercedes—benz, mitsubishi, nissan, renault and toyota. david martell is the founder and chief executive of chargemaster. nice to see you. the first thing that strikes me is working with so
many brands, i know trying to plug in my tablet, my phone, they need different wires. is there a universal plug? not quite but it works. there's two types of charging, one is a relatively slow rate, and a universal standard called type ii microcell all of the charges around the country have the type two socket. a rapid charger is slightly more complex. all of the rapid charger is we have on the network at chargemaster have all of the cables on so many car can charge. a lot of people are getting in touch this morning. 0ne charge. a lot of people are getting in touch this morning. one of the things holding people back is that they will go on a journey, run out of power halfway there or cannot go ona of power halfway there or cannot go on a journey because there's not the charging points there. how do you
reassure people about that? the vast majority of cars coming on the market have 200 mile range, once you have that, you dispel all of the fears people have about charging and running out en route. there is sufficient battery chargers around the country, so you can drive from london to bristol to manchester, stop for maybe half an hour on the route and have a cup of coffee, exactly the same as you would in a petrol car. is your own car and electric one? and what made you decide to take the switch?|j electric one? and what made you decide to take the switch? i haven't beenin decide to take the switch? i haven't been ina decide to take the switch? i haven't been in a petrol station for two yea rs been in a petrol station for two years and that's a refreshing achievement. so what came first, you started using electric cars and then block the company up and running?” was motivated by providing the
infrastructure for the electrification of transport. about ten yea rs electrification of transport. about ten years ago i came to the conclusion that motor manufacturers we re conclusion that motor manufacturers were going this way, needed to for air quality, climate change and so on, and the very fact i could see electric cars were nice to drive. if you have electric cars, you need infrastructure and i saw the opportunity to provide it. we have been asking for tweets from this because some people have reservations, money upfront, they can be more expensive than petrol and diesel cars. 0ne can be more expensive than petrol and diesel cars. one person says my worry is finding a charging points and it is out of order. years ago many of the charging points were supplied by local authorities who don't have the motivation to maintain them. now companies such as chargemaster have taken over and we have and 99.5 cent reliability record. when you roll out the
infrastructure it's a real chicken and egg thing, isn't it? do you need to see the demand from cars to put them in? where do you make those decisions? it is a commercial decisions? it is a commercial decision that the end of the day. chargemaster will put 5000 charging points out there in the next couple of years, there is already 13,000 across the country and we don't see it constrains to the growth of electric cars. there is so much more i want to ask, but time is tight this morning. david martell, thank you for coming in. 70 years have passed since the end of the british raj. partition resulted in muslims moving to the newly formed state of pakistan and hindus moving to independent india. among the millions of people affected, the owner of one sweets franchise eventually managed to thrive in a new homeland. but it was a painful and challenging journey. here's his story. we had three restaurants, and due to
entirely, and therefore the pain is still there. the mockery of the whole thing is it was not a question of either vision, so what was the cause of partition? much more coverage of partition on the bbc throughout the day. we are talking about the business pages now. uber is changing some of its rules, talk us is changing some of its rules, talk us throughout. yes, i think they are trying to change the news flow on the country. they are changing the waiting times, all in favour of the driver. we will be allowed to tip within the app and drivers will be
allowed to charge us if we don't turn up within two minutes, so they are trying to make it more attractive to the driving community. the group of drivers representing a lot of uber drivers save this is pre—empting regulation. you are trying to sweeten the deal before regulation. that's right. i think the thing they are looking at is in the thing they are looking at is in the us and new york, where uber did the us and new york, where uber did the same thing. they pre—empted regulatory change so they have been allowing this for a couple of months now in new york. i think there is a front running of some of the regulations, that's true to be honest with you. shall we talk electric cars? do you have an electric cars? do you have an electric car? yes. how do you find charging? fine, it has over 200 miles, with only had it a couple of months but we are delighted so far.
a total convert? we still have a petrol car for long journeys and thatis petrol car for long journeys and that is the challenge. petrol car for long journeys and that is the challengelj petrol car for long journeys and that is the challenge. i mentioned the tweet earlier, lack of charging points, who else do we have, will seems more enthusiastic, says it will save £2000 in petrol every year so it is getting there. silence for pedestrians is quite a big point actually. and the question of if it has a noise, what should the noise be. that's for another day. we will see you at the same time, the same place tomorrow. see you then, goodbye. todayis
today is looking pretty good weather—wise. a ridge of high pressure building in, it will be fine and settled with plenty of warm sunshine around. not completely dry, there will be a few showers in the north than half of the country. some thunderstorms in kent will clear away, same too for the north—east of scotla nd away, same too for the north—east of scotland and as the ridge of high pressure comes in, temperatures quite widely around 21 degrees but we could see 25 degrees in the south—east once again. further north and west you are, the greater chance of seeing a shower. there could be heavy ones across northern and western parts of scotland but even here in the sunshine it will feel pleasa ntly here in the sunshine it will feel pleasantly warm. a fine end to the day, those showers will fizzle out quite quickly this evening and for most quite quickly this evening and for m ost pla ces quite quickly this evening and for most places it will be dry overnight with light winds and clear skies. this is the next weather system which will push into northern
ireland, turning windier and wetter by dawn but elsewhere it will be dry. a ridge of high pressure ebbs away, this low pressure will be taking over through the course wednesday but it means central, southern and eastern parts of the uk and parts of scotland will start wednesday fine with glorious piles of sunshine. the wind and rain across the west will slowly push eastwards reaching scotland, north—western england, in towards wales and the south—west, but east of here it should stay fine, feeling warm and fresh out west. 0n wednesday night the weather system will cross the country bringing heavy bursts of rain in places but eventually it will clear away, then we are in a run of south—westerly winds with heavy showers as well. some will be blustery and thundery across western areas, but in the sunshine it will feel quite warm again. on into friday, low pressure
still with us, and winds coming in from the north—west. across the board will feel cooler on friday with plenty of blustery showers but also sunny spells and between. this week quite mixed, warm spells of sunshine, occasional showers and it will become windier by the end of the week. hello, it is tuesday, it is 9am, i am joanna gosling. in his first bbc interview we hearfrom phil green, the agent who was managing model chloe ayling when she was lured to milan for a photo shoot and then kidnapped and held at a remote italian farmhouse. he was the one who received the ransom demands — which included a photo of chloe which he describes as "incredibly sinister". it frightened the life out of me, i did not want to look at it any further. it turns out, are not photograph, it was chloe and she had been photographed while unconscious. you can hear our full interview with phil green in a few minute's time. taylor swift has won a case against a former radio dj who groped her four years ago.