tv Business Briefing BBC News July 10, 2018 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. global investors weigh the political risk in the uk, as theresa may's brexit team gets a dramatic revamp. and when the fix can be worse than the problem. we travel to one of the most polluted areas on the planet to see how clean—up measures backfire. and on the markets: the pound sterling is steady having fallen quite a bit yesterday. you can see that get today the share markets are headed upwards. there is growing uncertainty over the future of europe's second biggest economy — the uk. the plan laid out by prime minister theresa may about how she sees britain's relationship with the rest of the european union prompted the resignation
of borisjohnson as foreign secretary. he is now being replaced by former health secretaryjeremy hunt. we'll hearfrom him in a moment. in a sign of how much is at stake for businesses on both sides of the english channel uk trade with the other 27 members of the eu was worth about $815 billion last year. prime minister theresa may wants the eu to agree to a "common rulebook for all goods" which would minimise the border and customs checks which cause cost and delay for companies and avoid a hard borderfor northern ireland. under her proposals, the two sides would act as a combined customs territory and she told parliament that 96% of businesses would pay the correct tariff or no tariff at the uk border however there has been little detail on what the uk wants for the services sector — including finance —
which make up nearly 80% of the uk economy. let's hear what the newly appointed foreign secretary had to say about britain's place in the world after brexit. this is a time when the world is looking at us as a country and wondering what type of country we will be in a post—brexit well. i wa nt to will be in a post—brexit well. i want to say to them that britain will be a dependable ally, a country that stands up for the values that matter to the people of this country and a strong and confident voice in the world. ross denton, trade partner from baker mckenziejoins me now. the chequers compromise will be discussed with theresa may's new cabinet this morning. they have to sell it within the uk and in brussels. what is your take on what was hammered out on friday.
brussels. what is your take on what was hammered out on fridaym brussels. what is your take on what was hammered out on friday. it is not an ambitious proposal to look at what theresa may has said you can find the detail of this in there. it isa find the detail of this in there. it is a free—trade agreement with couple of issues. the big thing i think theresa may has mist out on here is what will happen on the service trade. we are talking about clear rules all principles on the goods site but not much for services. they are quite an important part of our trade component and we do not know what will happen. that remains a grey area but interestingly, looking at financial markets in the business community and investors, the pound, despite the fact that boris johnson and david davis resigned, they are seemingly happy with the direction that the prime minister is taking brexit. there is now a clear proposal on the table and the degree of pragmatism built into this. we are getting to a situation where the shape of the deal is coming out. i don't think it is ambitious. i said
it is ceta - -. don't think it is ambitious. i said it is ceta — —. nobody knows how the common rule book will work. talking now about the new brexit secretary and a brexiteer himself. how will he do in brussels? i think he is a lawyer with good attention to detail. i don't know what this role will be. david davis did not have a significant role in negotiations and when we get to the end of the negotiations, mrs may have and that she would and that is yes he will have an interesting job in the next few months of getting across the briefing getting involved in discussions and potentially closing the mou with a little help from the prime minister. as you say, there is still so much detail we don't yet know about. will we have is a 3—page statement from the government and we expect another 100 pages to be added. rustles need to get their head around it as well. they are
staying on message in terms of saying we want to get going with this and we want to negotiate, we wa nt to this and we want to negotiate, we want to move forward and see the uk expert. that is they take on it all. is this week playing out here in westminster do that we can to rhesus hand? not at all. i think what they are trying to get out of us is what we wa nt are trying to get out of us is what we want and this is what we want. they kept their powder dry as to whether or not they accepted that they are waiting to the white paper with the detail they will pore over before they can make anyjudgement some will be proposed. looking at the situation we are in right now, where do you see us going? more political turmoil and a leadership challenge or a smoother path with some of the disrupters out of the picture. i think we will see a slightly smoother path of both in the legal text and on the political
side as well. i think there will be people in the brexit camp of the tory party that are very worried about some of the detail. i have seen some about some of the detail. i have seen some papers coming about some of the detail. i have seen some papers coming out where they are showing the halls in the facilitator customs arrangements on the common rule book. there will be a lot of detail when the white paper comes out that will be unleashed. thank you so much for coming in earlier gained. that is ross denton. we will discuss this in more detail later in the news briefing. chinese producer inflation accelerated to a six—month high injune, while consumer prices moved at a slower pace. let's go to our asia business hub where rico hizon is following the story. eu. can you talk us through this latest data out of china? when you
speak to latest data out of china? when you speakto an latest data out of china? when you speak to an economist, the inflation numberand speak to an economist, the inflation number and the producer price index area number and the producer price index are a concern for them because it is are a concern for them because it is a signal that could have implications for the global inflation picture in the near to medium term. you have consumer price inflation rising by 1.9% in the year tojune, up from 1.8% in may. that is still well below the goal of around 3%. that is in line with the target of last year. the producer price growth is a concern because it moves at its fastest pace in six months and rose to four points 7% year—on—year injune months and rose to four points 7% year—on—year in june and months and rose to four points 7% year—on—year injune and that, sally, is well ahead of the li—.1% increase the month earlier. movements in chinese producer prices tend to leave those in the us prices and inflationary readings in nations around the world. ensured that relationship old firm in the months
ahead of to building upside risk to inflationary pressures globally and potential to tide mark a policy or higher interest rates from major banks. economist say that looking ahead the newly introduced tariffs and imports from china poses some upside risk to food inflation to be putting this together we can see high interest rates going forward which could impact growth numbers not only in china but around asia and the world. we have a special report for you from russia, all over our screens at the moment because of the world cup. chelyabinsk, in central russia, is one of the most polluted places in the country. 0n the edge of town, fires at a defunct soviet—era coal mine are poisoning the air. for years the authorities have struggled with the problem, but now a local company has come up with a solution. but the locals say it's just going to replace one environmental disaster with another.
0leg boldyrev got rare access to both sides in an increasingly bitter dispute. this is the largest open cut coal face in eurasia and it is on fire. it will shut down after 80 years in operation but now the coal ignites an open—air. the smoke causes headaches for the locals and for authorities to need a solution. the company that owns the pitt says it has a plan. pour millions of tons of mud over the slopes and sealed surface. is where the mud will come from. 20 kilometres away, the same company is building the foundation for a company is building the foundation fora giant company is building the foundation for a giant copper extraction plant. 28 million tons of copper there will be milled here each year. 99.5% of what they did out will become waste. mixed with water, these leftovers will be transported to the coal pit and some bread over the smouldering
slopes. —— spread over the smouldering slopes. residence of chelyabinsk are angry about the plan. we want to breathe. it is a coal mine, not a dump, plan. we want to breathe. it is a coal mine, nota dump, said plan. we want to breathe. it is a coal mine, not a dump, said the posters. this place has become a symbol of major poison by industry. the new russian industrialists say their plans are safe but many locals do not believe them. this means that the conflict threatens to projects, both the old one and the new one. —— threatens two projects. let's quickly show you the financial markets c can see how the progressing. companies in the us are starting to report their earnings and that will be a focus for global investors around the world. a strong close in the united states, the same story for markets in asia today. that's it for the business briefing this hour.
0ur our news review in a moment that first of all the introduction of extra services on eight different railway lines has been delayed because of the chaos caused by timetable changes earlier this year. the chairman of network rail, sir peter hendy, said the industry had scaled back its ambitions after what he called "recent painful lessons". 0ur correspondent tom burridge has all the details. 0ther franchises will introduce minor timetable changes in december. feel familiar? train travel across written is all too often a crowded affair. so plans were in the pipeline for new timetables with many more trains from december. but
this was the scene in may. thousands of trains were cancelled or delayed when northern and go via thameslink significantly changed their timetables and passengers were left stranded. you are just waiting on the platform for 30 minutes and then all of a sudden theyjust cancel the train. so now, timetable changes planned for much of the debt network in december have been postponed. in fa ct, in december have been postponed. in fact, all of these operators will make no change in december at all. passengers and other places will see minor changes. the body that represents rail company says that must come first. but in reliability must come first. but in places like leeds that there has been criticism that passengers and local politicians have not been consulted. thousands of prisoners will be able to make telephone calls from their cells under plans announced by the government. the telephones will be installed in prisons as part of a dry to improve safety in jails across england and wales and stem the trade in illicit
mobile. more on those stories and, of course, the crisis in the government, some would call it political chaos, that is coming up in breakfast when the team willjoin you in about 17 minutes time here on bbc one. this is the briefing from bbc news. the latest headlines: the british prime minister theresa may appears unlikely to face an immediate challenge to her leadership despite the resignation of two leading supporters of brexit — including the foreign secretary, borisjohnson. rescuers in thailand have begun a third day of the operation to free a group of footballers and their coach trapped in a water—filled cave. so far eight boys have been brought to safety. later today, belgium will take on france in the city of saint petersburg in the first of two world cup semi—finals.
now it's time to look at the stories that are making the headlines in the media across the world. we begin with the daily telegraph. it's repoting on the resignation of british foreign secretary, borisjohnson, who has said "the brexit dream is dying". he quit the cabinet with the warning that uk is headed for the status of a "colony". the guardian front page focuses on the warning by british prime minister theresa may's last night for hardline brexiters to fall into line or risk handing power to opposition leaderjeremy corbyn. politico is covering us president donald trump's nominee for the supreme court — 53 year old conservative, judge brett kavanaugh. the nomination, it reports, brought unity among the republican party, while there has been fierce critcism from the democrats. the front page of the arab news reports on one of turkey's worst train disasters in recent years that killed 2a and injured
hundreds — and how the disaster cast a shadow over the inauguration ceremony marking recep tayyip erdogan's second term as president. the pages of financial times cover a story that it says could alter the political and economic landscape of the horn of africa. ethiopia and eritera have signed a declaration formally ending their war of nearly 20 years ago. and the times features a story on how wimbledon is bending its strict rules so fans can follow england's world cup