tv BBC Business Live BBC News October 6, 2017 8:30am-9:01am BST
business live, the question is can the eu and india finally do a trade deal. free—trade talks between the eu and india have been stymied by disputes over cars, alcohol and immigration. and today's meeting of leaders get negotiations back off the ground. also coming of view on the programme, nissan recalls 1.2 million cars after the country's transport ministry found they were not being signed off by qualified technicians. and we will be bringing you up to speed with all the latest from the markets, european shares have opened next, ftse and stacks
taking their cue from asia and wall street, where all three major industry saw record closes for a full year ina industry saw record closes for a full year in a row. google pushes into hardware, amazon is told to pay back taxes and you're who revealed that billions affected by the cyber bridge, we will be looking at the weekend tech. fallout from the colla pse weekend tech. fallout from the collapse of monarch airlines, many of the hardest—hit customers paid debit cards to pay for flights, today we want to know, are you willing to pay a little bit more to use a credit card instead of a debit card, to give you extra protection. welcome to you, good to have you with us here on business live. we start in the indian capital delhi, where prime minister modi is hosting the 14th eu—india summit. european commission president jean—claude juncker and european council chief
donald tusk are there to discuss everything from security to migration and climate change. but they will also be trying to revive talks on a free trade deal, which started a decade ago but have made little progress. the european union is india's biggest trading partner. the two sides traded over 90 billion dollars‘ worth of goods last year. including the service sector it's a £120 billion a year relationship. but there are some big issues. india protects its local industries with import taxes or tariffs on foreign goods. the eu would like to see those slashed, particularly on cars, as well as wines and spirits. for india the big priority is visas. it wants immigration rules relaxed, making it easierfor indian professionals to work in europe. but the eu says visas are question for national governments, not something it can regulate. are we expecting any major
announcements today? absolutely, first let me tell you, the visitor the eu delegation has started on a very high symbolic note, they have gone to the site of the memorial of mahatma gandhi and paid their respects, with the indian prime minister, this is a government which has covered these discussions, we expect announcements, $1.5 billion loa n expect announcements, $1.5 billion loan being given to india. what is expected is a joint
statement on climate change and counterterrorism. with the uk getting ready to leave the eu, does the uk and the eu have anything to offer india without its other. it puts india in a sweet spot, it has the bargaining chip, it has to do business, you would like to open up the economy to foreign investors, and both european union and the united kingdom wants to access the indian market. the indian return has been asking for a liberal these access, asking for a greater trade agreement between the two countries. with the uk, with uk prime minister theresa may, coming here, india has put that these conditions and also with the
european delegation, they will be negotiating on this front. the european union has given out more investment deals but we have to wait and watch whether there will be a liberal these agreements to go ahead with. thank you very much. live in delhi. some of the other stories making the business news. ryanair chief executive michael o'leary has written to the airline's pilots to offer them better pay and conditions. the improved conditions came after the airline was forced to cancel thousands of flights in recent weeks. in a letter to pilots, mr o'leary also apologised for changes that caused disruptions to their rotas and urges them not to leave the airline. the barcelona—based bank, sabadell, said it will move its legal base out of catalonia following threats by the region's leaders to declare independence. spain's fifth—biggest bank said it would start the process on friday to move its legal domicile to alicante. its headquarters and employees will remain in barcelona. shares of netflix have risen after it announced it's raising
prices in the uk and us for the first time in two years. the streaming video service will also increase subscription charges in some european countries. the rise affects both standard and premium sunscription packages. the increases apply immediately for new customers, while existing users will be notified of the change 30 days in advance. let's head to asia, and another dent on the reputation of the japanese car industry. nissan is recalling all 1.2 million cars it sold in its home market over the past three years. the country's transport ministry has found cars were being signed off for delivery without being checked by qualified technicians. monica miller has more from singapore. unwelcome news for nissan, but bad news for the japanese car industry.
madd tourfor news for the japanese car industry. madd tour forjapan‘s second—biggest car—maker, they don't want to make it right now. we did hearfrom car—maker, they don't want to make it right now. we did hear from the transportation minister early today, he said that through spot inspections they discovered unauthorised technicians have been found certifying cars at five companies. it is ready to recall more than1 companies. it is ready to recall more than 1 billion companies. it is ready to recall more than1 billion new passenger ca i’s more than1 billion new passenger cars built over the past three yea rs. cars built over the past three years. ——1 cars built over the past three years. —— 1 million. including top sellers like the note compact hatchback. they will undergo inspections, including checks on breaking and acceleration capacities, this will cost $222 million. the recall is japan's... the recall is the second major misconduct for a japanese car—maker in the past few years, in 2016, mitsubishi admitted it. fuel kontaveit tests on some of its domestic models. let's stay in the
region now, because asians stocks rose on friday, taking their cue from wall street, as you can see. hong kong shares extending gains to edge closer to 10—year highs, underpinned by chinese automakers and financials, although some early gains cooled off by the afternoon. meanwhile the s&p 500 posted its sixth straight record high close on thursday, its longest run since 1997, as investors cheered increased prospects for a tax overhaul with congress moving closer to agreement on a budget resolution. thursday also marked the fourth day in a row where all three major us indexes had hit record closings. we also saw the dollar hit a seven—week peak, riding on economic optimism ahead of a us job report later in the day. meanwhile, here in europe. a slightly mixed picture. markets taking their cue from the right is that we saw overnight in asia and the us.
and samira hussain has the details about what's ahead on wall street today. the first friday in october means it is time for the monthlyjobs report, a snapshot of the us labour market. for the month of september, economists expect to see in additional 90,000 jobs added to the economy. that is down from the previous month, that saw a rise of 156,000 jobs. the unemployment rate will likely stay the same as for 2496. will likely stay the same as for 24%. what will be of most importance, especially to the federal reserve, will be the increase to hourly wages, which have remained stubbornly low, having only increased by 0.1% in the last month. interest rates may be raised one more time this year and there is only two federal reserve meetings until the end of the year, one in 0ctober until the end of the year, one in october and one in december, meaning thisjobs report will october and one in december, meaning this jobs report will be very closely watched. joining us is jane foley, senior currency strategist, at rabobank.
a lovely phrase, when the wall street markets hit record highs, she says they are doing a happy dance... they have not stopped dancing yet. an awful lot of happy dances. really it was quite good, world growth, and of course, very cheap money, a bank in the us had been put on interest rates. from a historical perspective, money is very cheap. combined with global growth, that means there is plenty of opportunity for investment, and this is why we keep seeing stock markets are moving across the globe. are quite talking of stock market is doing happy dances across the globe, welcome news in spain, on thursday, we saw the ibex, the biggest market, recovering almost all of the losses that it made on the wednesday. we did hear news from the biggest banks, and other offices, taking their headquarters out of the catalonia region, this is related to
the political uncertainty related to the political uncertainty related to the catalonia independence bid. for the catalonia independence bid. for the markets, of course, political uncertainty is a disadvantage, and so if they move out of the region, we know that their jurisdiction with the ecb will be left unchanged, and that clarified the outlook for many of us. talking of political uncertainty, in the uk, it seems to have an effect more on the currency, on sterling, rather than the ftse 100. the political uncertainty makes it more difficult for the bank of england to hike interest rates, which is good. markets, but we have seen which is good. markets, but we have seen sterling trundling over, and this is a mixture of the political uncertainty, the big divisions within the conservative party, that concerns “— within the conservative party, that concerns —— the concerns that theresa may has been pressured to resign and concerns about the economic growth in the uk as well. a combination of both those factors. many thanks, stick around, business
papers. still to come: google pushes into hardware, amazon is told to pay back taxes and yahoo reveals billions were affected by its cyber breach — we'll be looking at the week in tech with our own rory cellan—jones. you're with business live from bbc news. the latest figures on the so—called productivity gap are out later this morning. the uk is producing a fifth less goods and services now than before the credit crunch, and it's one of the factors holding back wages. but what can small firms on the ground be doing to boost output which in turn could mean a shorter working week or a bigger wage for employees? let's go live now to ulverston in cumbria where ben has escaped to the countryside. very much needed up here in cumbria,
we are here at cumbria crystal, glass—maker, cut glass, all sorts of things, decanters, tumblers, that sort of thing, they have been making them here for years, so you would think it is an age—old industry, difficult to change how they do it but they have, because they have been tackling low productivity. the bossis been tackling low productivity. the boss is willing to tell me how they have done it. you have made some relatively small changes but it has made a difference in how the business operates. yes, through a website, be the business, we have looked at what we can do affordably within the company, we have brought about many small changes, including things like investing and designing new doors to retain heat, engaging differently with the staff, so they can see what is going on, they understand the benefiting of getting things right first time, we can increase productivity that way.
meeting over copper, it helps to make staff work better and resolve problems and get it right the better, first—time. problems and get it right the better, first-time. what is so amazing, just by putting better doors on yourfurnaces, amazing, just by putting better doors on your furnaces, that saves thousands of pounds. -- meeting over a cup of coffee. they are as second—largest overhead, we have saved thousands of pounds. these quys saved thousands of pounds. these guys are saved thousands of pounds. these guys are putting a stem on a wine glass, age—old industry, one which ta kes yea rs glass, age—old industry, one which takes years to master, absolutely fascinating, we have been looking at how they have been doing it, and it really is a skill, improving productivity over the course of a couple of years is a real big challenge, but it really is about that bind, getting the staff involved, but also making relatively small changes to how they do it. we get those official figures a little later. but from here, in cumbria, outside cumbria crystal, i will leave you with this age—old industry, just how they do
you are watching business live. negotiations started a decade ago but despite 13 summits, talks remain back at a standstill. a quick look at how the markets are faring. the other global markets, asia and the us are touching record highs at their close overnight. we will see if the european markets respond to that later in the day. this week we had more news about the scale of yahoo's data breach in 2013. the eu announced a tax crackdown on amazon, and google unveiled a pair of headphones that are like
something from the hitchhiker‘s guide to the galaxy, allowing the wearer to speak and translate a foreign language. let's get the inside track on all this with our technology editor, rory cellan—jones. rory, let's start with the google stuff. fascinating. a big push into hardware by the firm. yes, what is extraordinary about google is obviously, they are a very powerful softwa re obviously, they are a very powerful software com pa ny. obviously, they are a very powerful software company. that is where they made their name and their money. they are pouring a vast amount of money into artificial intelligence research but they are desperate to be big in hardware. i think they are looking down the road at apple and seeing how apple controls everything from the devices themselves down to the software which runs on them and google think we would like a bit of that. they have brought out two
pixel smartphones. they have refreshed their google speaker range which is in competition with amazon. they are a bit behind that and struggling to keep up there. the cherry on the top of these fantastic earphones which translate instantaneously. it is amazing technology. it has to be said, other people have the same technology. technology. it has to be said, other people have the same technologylj was people have the same technology.” was going to ask you about that. on your blog you likened it to the babelfish which was from hitchhikers guide to the galaxy which was a0 yea rs guide to the galaxy which was a0 years ago. and you mentioned danny. who is danny? . .. years ago. and you mentioned danny. who is danny?... he is a british inventor who came up with the same idea, wireless ear pods which do instantaneous live translation. he has been struggling to get the thing out. i feel for has been struggling to get the thing out. ifeel for him has been struggling to get the thing out. i feel for him today. has been struggling to get the thing out. ifeel for him today. he's has been struggling to get the thing out. i feel for him today. he's a band with a little bit of support. he is up against google. he will get steam—rollered. i spoke to him and he said he is fine. his stuff is
better. he is fighting on. you have to admire that kind of entrepreneurial spirit.” to admire that kind of entrepreneurial spirit. i remember seeing that report at the time of thought that was a great idea. i suspect someone thought that was a great idea. i suspect someone from google saw it as well! let's talk about amazon, the major spat with the european commission and apple are also getting in a tangle. amazon had a fine, back tax order of something like $300 million, just under that. funnily enough, it looks quite modest compared with the $1a billion which the eu has ordered apple to pay to ireland. the eu went to court for not collecting the back tax this week. the wider picture here is this continuing battle with europe and these big tech firms. they call them gaffer in europe, google, amazon, facebook, apple. they are very
worried about their power. i think people around the world are worried about their power. the european commission is taking a different attitude from the competition authorities in america where the general mood is these are very powerful but they are not doing any harm to consumers. the european commission is more concerned about the structure of the industry and how to bear down on these mighty companies. gafa, i have not heard about that one before. i learned about that one before. i learned about fangs the other day. i am totting up all these new words! the other story that was big this week, yahoo, the breach was even bigger than we thought. two years back yahoo came out and said we have had a breach, a data loss, i think a billion people could be affected. we all think, that is pretty bad. since then, verizon, the mobile phone giant, has acquired yahoo and has been doing a bit of a clean out and put out a statement and said actually, it is not a billion, it
is3 is 3 billion. two things strike you, how blase we are about this, but also did anybody really think yahoo had that many accounts? it is across everything from e—mail and the flickr photo site. it is a wake—up call to how serious these data breaches have been and how careful we need to be with data. yahoo has been ailing for years, but these are very big presence on the internet. a lot of people have interactions with it. a lot of people trust it with their data but i think people are getting less trusting these days. rory, thank you and have a great weekend. in a moment or two we will have a look through the business pages but before that a reminder of how you can get in touch. we will keep you up—to—date with the
bbc‘s team of editors around the world. get involved on the bbc live web page. we are on twitter and you can find us on facebook. bbc business live on tv and online whenever you need to know. what other big stories have been making the papers today? jane foley is back. shall we start with the ft and this story about monarch customers, be at the front of this fallout in the airline collapse. the ha rd est fallout in the airline collapse. the hardest hit were those who decided to book those flights on debit cards with the carrier. we began the show by asking people to tweet in whether or not they would consider making one of these big—ticket purchase on
a debit card rather than a credit card, because it is often cheaper. someone has said they would never dream of booking on a debit card. what do you think the lesson has been learned? i think it takes a crisis like this for people to realise you get extra insurance on a credit card. people think what is the difference? in the late 90s i booked a flight with teletext do remember that? i couldn't get any details, i went around the travel agent, it was shut up. i got my money back because i had booked through a credit card. i met a gentleman with his two small children. he had paid with cash and lost everything. that stuck with me. if you book with a credit card you get a guarantee, if you book with a debit card, you don't.” get a guarantee, if you book with a debit card, you don't. i am pain attention that i am also looking at the tweets. nicola says i always use a credit ca rd
card when paying for expensive purchases. ryan said for everyday purchases. ryan said for everyday purchases he uses debit but if it is something bigger then he will use a credit card. mark points out, as it looked like monarch almost went under last year, i would definitely have used credit for the extra protection. mixed views there. if you can save a few pounds, you might be tempted to. thanks for sharing your thoughts with us. also in the papers, some of the catalonia —based banks are looking at relocating. we are talking about major large institutions here. this would be illegal, change of the headquarters. whether that means a huge amount of staff, maybe not. these are spain's, some of the largest banks. no doubt they will have branches all over the country anyway. this is a legal change. that has been a reassurance to the markets. if they are still in spain the markets know they will
definitely remain in the eu and indeed emu. for banks and big regulator is the european central bank so it is important to know it is business as usual. on the airline theme in the telegraph, this also piqued our interest. this is ryanair, we touched on this earlier. they're accused of intimidating passengers looking for flight delayed compensation. perhaps not surprising in many respects. i think eve ryo ne surprising in many respects. i think everyone knows that ryanair does cut down to the bone. another story here which is quite interesting is also about the pilots. 0ne which is quite interesting is also about the pilots. one of the reasons that so many flights were cancelled was this business about changing the pilots' rosters. there was an unofficial letter reportedly going around saying that the pilots should have an unofficial union and pushback against management and 0'leary has a much more considerate tree stance now. this begs the question, how much bad news can ryanair question, how much bad news can rya nair withstand ? . .. question, how much bad news can ryanair withstand? . .. and many
customers would think twice now. i suppose market forces will operate. we have seen mr 0'leary asking them not to go elsewhere and maybe that bit of humility will convince them. he said there are goodies for the pilots but if they ta ke goodies for the pilots but if they take action the goodies will disappear. dislike handing out sweets. jane, thank you for coming in. we will see you as soon. but we will see you soon. have a lovely weekend. hello. it may be a bit chilly to start this morning but the good news is that means there will be plenty of sunshine first thing. for many, that should continue through the
day. this was a lovely sunrise sent in. many have enjoyed the lovely sunrise this morning. unfortunately we still have some brisk winds not far—away across the low countries. the winds for ourselves are easing away. for the majority it is sunny. the winds are lighter than yesterday. it should feel quite pleasant. there are a few exceptions to the rule. as we approach the time, there will be some rain knocking on the door of the western isles. after the sunny morning, the will be an increase of cloud and patchy rain for fermanagh and tyrone. showers running through the liverpool bay area towards the north midlands will ease away. as will the showers in norfolk. and any showers in west wales will diminish. and lighter winds, feeling quite pleasant. the temperatures will fall
away quite quickly. elsewhere, the wind will strengthen, the cloud increases and there will be patchy rain by morning. it will be foremost, a mild night. it will be a grey start tomorrow morning. the rain will not take too long to down to south—eastern parts of the country. a real rush of showers following on the brisk north—westerly wind. yes, more cloud tomorrow and some rain around at some point during the day. it will not be raining all the day that it could be quite dank across southern areas. 1a to 16, on a par with today. the good news is, for the second part of the weekend, that weather front clears out of the way. a bump of high pressure coming in from the atlantic. fewer showers, more dry weather. still quite a bit of cloud i envisage on sunday. with the westerly breeze continuing, it should feel warmer if anything. 15 to 17 given some dry weather and
sunny weather as well. just to summarise the weekend, after a lovely day today it should be drier and brighter on sunday. bye—bye. good morning. home secretary amber rudd has urged theresa may to continue leading the country as the former conservative hearty german grant shapps says he has a list of 30 mp5 grant shapps says he has a list of 30 mps who want the prime minister to stand down. it's nine o'clock, i'm chloe tilley, welcome to the programme. they include people who are strong remainers, strong levers, people somewhere in the middle. 0ur cabinet members aware, yes? yes. do some cabinet member supported, yes they do, i am sure they will not say that in public. the parents of baby harriet who was stillborn are with us harriet who was stillborn are with us this morning to talk about the multiple failings that led to her death and why they are campaigning to get the law changed around inquests. the chief of police in the spanish region of catalonia who won