Skip to main content

tv   Business Briefing  BBC News  December 4, 2017 5:30am-5:46am GMT

5:30 am
this is the briefing. i'm sally bundock. our top story: theresa may heads for brussels amid speculation that britain and the european union are close to agreeing a deal on the first phase of the brexit negotiations. australia launches an investigation into google and facebook‘s dominance in the global advertising space. we'll be live to sydney for the details. these are the markets in asia. a bumper day is expected all street with the key taxation bill passed in the us. —— on wall street. it is a big day for brexit. in a few hours‘ time britian‘s prime minister theresa may will sit down for lunch with the eu commission presidentjean—claude
5:31 am
juncker. on the menu is the rather chewy issue of whether enough progress has been made to start talks on a post—brexit trade deal. a weekend of diplomatic activity has brought the two sides closed together on the uk's financial settlement and citizens rights. that comes after last week's offer of more money from downing street, a sum the bbc understands could be as high as $60bn. but when it comes the issue of the land border between the irish republic and northern ireland nobody wants a hard border, and the republic's foreign minister has told the bbc "more credible answers are needed" for talks to move on. that border is politically important. but the two sides economies and citizens also depend on good flowing freely. in 2015 that trade was worth just over $4bn. but there's fiancial inter—dependence across europe too. last year the uk exchanged about $730 billion of goods and services with the other 27 eu countries. zsolt darvas is a senior fellow
5:32 am
at the brussels based economic think tank bruegel. thank you for being on the show. we are hearing a lot about significant progress being made in terms of the key issues. what are your thoughts on what might happen today? my expectation is that president jean—claude junker and theresa may will have a serious discussion. i think he will say he will recommend the council conclude significant progress has been reached. the most significant issue is the northern
5:33 am
irish border. if he does recommend progress has been reached, that presumably means trade talks can be on the agenda before the end of the year. next week, the european council will meet formally, the 27 member states, they will have to conclude sufficient progress. if that happens at the end of next week, from early january, that happens at the end of next week, from earlyjanuary, trade talks will start. you mentioned the issue of northern ireland in the one not really that clear in terms of what progress has been made. —— being the one. the government of northern northern ireland is adamant they want to know what the deal will be sooner than later if the talks are initiated. the biggest problem is that uk wishes to leave the european union's custom union and single market, so some kind of checks will have to be somewhere. it either will have to be between the
5:34 am
irish republic and more than ireland, or between northern ireland and the rest of the uk, and none of these options look simple. if, for example, there is some sort of special deal brokered between ireland and the uk, what will the other members of the european union think about that? what will their reaction be? because, of course, all of us has to go through the government. in my view, the government. in my view, the government of ireland cannot have a special deal with the uk. it will have to be with the eu 27 and the uk, because the republic of ireland is part of the european union as a single market. there are many, many rules which regulate how a single market works. it has to be between the eu 27 and the uk government. thank you for your perspective. interesting to get the view from brussels on this story. we will have more on that in the news briefing
5:35 am
looking at grass in ireland and their take what at the weekend. australia has become the latest country to ask if google and facebook are too powerful in the advertising world. the competition regulator is going to look into whether they are damaging traditional media such as the country's struggling newspaper industry. worldwide, google and facebook account for 20% of all the money spent on adverts. last year that came in at eye—watering $106 billion. that's more than the size of most countries economies. our correspondent, hywel griffith, is in sydney. this is an interesting move on the pa rt this is an interesting move on the part of the authorities in australia. how successful will they be? we will have to wait and see. this will take up to 18 months before a final report. we know the
5:36 am
background. google and facebook are accused of forming a duopoly when it comes to advertising, taking a huge chunk of the share. they are one of the growing digital advertisers, overtaking tv advertising as the main media. be a —— the accc, the watch dog in australia, will look at advertising on line. there will also look at google and facebook‘s other activities. —— they. for example, how they generate news and how commercial advertising blues with that sometimes. some have been accused of generating fake news. we have seen that in the uk, calls for them to come under greater scrutiny by the media organisations. and also in the eu, facing fines for shopping
5:37 am
services, with search engines referencing companies. this will come under the scrutiny of the accc in australia. both companies said they will comply. they don't think they will comply. they don't think they have done anything wrong. they will look into detail at how these massive, massive global companies operate. thank you very much indeed. how much of a difference can one diamond make? well, for people living in a small village in sierra leone the hope is lots. the so—called "peace diamond" is being auctioned off in new york later today and could raise tens of millions of dollars. and half of the money from the 709—carat stone will be used to fund things like clean water, electricty and road building in the village where it was found as samira hussain reports from new york. don't expect to see this rock on any
5:38 am
one engagement ring. this unpolished diamonds could be worth $50 million. money from the sale of this diamond will help good roads and bring electricity to the village where it was found. it is a departure from sierra leone's past history with the gems. diamonds funded warlords during the decade—long civil war in the country. but things have changed, and sierra leone is now trying to use the diamonds to help the country and its people by drawing people's attention away from conflict diamonds to the so—called peace diamond. to be realistic, you don't expect a single diamonds to provide electricity for all of the schools in the country, but there has to be a starting point. this is one diamond, and sierra leone and the community rest on it. millions of others are found each date without this transparency. that is the problem the diamond and to rally
5:39 am
industry has. for there to be meaningful change in the industry, it will have to come from the consumers. “— it will have to come from the consumers. —— jewellery. they will have to ask where the diamonds they are buying are coming from, and not just if they are conflict free, but if they are fairly traded. that is if they are fairly traded. that is if they are fairly traded. that is if the country of origin is actually seeing some benefit from the games you are buying. —— gems. now let's brief you some other business stories. the biggest corporate takeover of the year looks likely to happen in the us pharmaceuiicals industry. the retail chain cvs health says its buying the country's third biggest health insurer aetna in a deal valued at $77 billion. it's being seen as a pre—emptive move to see off amazon's impeding entry into selling medicines. the white house is willing to accept a slightly higher corporate tax rate if it means getting a final version of the us tax reforms through congress. budget chief mick mulvaney implied it could settle at 22% despite the senate passing a 20%
5:40 am
rate in the early hours of saturday. the bill still needs to be reconciled with the house version before president trump can sign the reforms into law. greece is looking to a meeting of eurozone finance ministers in brussels later to approve the release of its latest bailout funds. an agreement was reached with the eu and imf over the weekend for the almost $6 billion loan. greece has been struggling for years to restructure around $350 billion of public debt. a quick look at asian financial markets. the us tax reform bill is still on the minds of investors. a mixed day on friday to close in the united states. i will see you for the news briefing. nearly three quarters of a million
5:41 am
children and pensioners in the uk have fallen into relative poverty over the past four years, according to a report by thejoseph rowntree foundation. the charity says efforts to reduce hardship are in danger of unravelling, mainly due to changes to benefits. 0ur social affairs correspondent, michael buchanan, has more. for this woman, this drop has many benefits. she can use computers to keep up with family and friends. but by being here, the 84 year does not have to spend money hitting her own home. if you go out, you don't have to have hitting on. —— heating. 0nce it is dark, and the evening is now called, you need to put the heating
5:42 am
heating on. the joseph rowntree foundation says since 2013, an extra 300,000 pensioners and an additional 400,000 children are now living in poverty. in total, 14 million people in the uk are in poverty. what our report is now showing us is we are ata report is now showing us is we are at a significant turning point. two yea rs of at a significant turning point. two years of sustained increases in the number of children and pensioners in poverty is a real red flag to government that they have to do something now. researchers say they should end the freeze on benefits, describing it as the single biggest change that would reduce poverty. ministers say they are already spending tens of billions of pounds, though the national living wage has given a significant pay rise to households. michael buchanan, bbc news. coming up at 6am on breakfast, charlie stayt and naga munchetty will have all the day's news, business and sport, including
5:43 am
a panorama investigation into why government funding for a flagship british aid project to support civilian police in syria has been suspended. theresa may head for brussels amid speculation britain and the european union are close to a deal on brexit negotiations. the biggest everjoint us- negotiations. the biggest everjoint us — south korean exercise has taken place. protesters are back on the streets of the romanian capital as the government has accused of offences. and australia is launching an enquiry into whether google and facebook are too dominant in the
5:44 am
advertisement industry and if that is harming traditional media such as newspapers. now it is time look at the stories that are making the headlines in media across the world. we begin the times and an up—beat headline, saying that according to a senior brussels official britain and the european union were 90% towards a deal that would open the door for transition and trade talks on brexit this month. meanwhile, politico takes a more guarded approach, with remarks from one eu27 negotiator saying they are hopeful of a deal but warned he did not know if the officials working on behalf of the uk government had the political cover they needed in westminster and belfast. which brings us neatly on to the irish times, which says he irish government seeks a firm guarantee from the uk their will be no return to a hard border with northern ireland whether britain exits the eu with or without a deal.
5:45 am
the japan times focuses on north korea and comments made by us national security adviser hr mcmaster, who said the odds of war breaking out with pyongyang are moving closer to reality with each day and that the world is in a race to solve the problem. the guardian carries a warning from the bank for international settlements, who say the situation in the global economy was similar to the period before the 2008 crash when investors seeking high returns borrowed heavily to invest in risky assets.


info Stream Only

Uploaded by TV Archive on