tv Business Briefing BBC News July 12, 2018 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. detail at last — theresa may's government gets ready to publish its white paper on the brexit deal it wants. but will brussels accuse it of cherry picking? another day, another bid. us cable network comcast trumps fox with a $64 billion bid for european broadcaster sky. we'll tell you why it's so valuable. and on the markets... in asia, they are shrugging off the losses on wall street the night before. for corporate earnings it will hopefully be good news. in the next few hours britain's government is due to formally lay out its post—brexit trade plans to parliament here in london.
there's still plenty of disagreement within theresa may's governing conservative party over the proposals which will cover goods once the uk leaves the european union. but there is little detail about what the uk wants when it comes to the services sector. and that's hugely important because services make up almost 80% of the uk economy and will be crucial in determining how prosperous the country is after the uk leaves the eu in march. the latest figures show that in 2016 the biggest share of uk services exports — 36.8% — went to the rest of the european union. the united states bought the next biggest chunk at 21% and then it was japan at 3%. and services are also crucial to the uk's public finances. the financial services sector alone paid $95.6bn in uk taxes in the year to march 2017 — that's 11% of all uk tax receipts so any fall could cut the amount
the government has to spend on everything from schools and hospitals to the army. victoria hewson is with us. senior counsel for international trade and competition unit at the institue of economic affairsjoins me now. in terms of services, we do not have detailed at the moment but when the white paper comes out some are speculating about what the hope is? i think the particular item that has come to the fore is financial services where there was some speculation the government will try to go foran speculation the government will try to go for an extremely ambitious mutual recognition which would be
comprehensive on its coverage based on the fact that we have full recognition and this idea of passport in that allows banks and financial institutions to trade across the economic area of europe based on regulatory organisations in any one member state. it seems from what has been reported in the financial times that it is seen as a nonsta rter financial times that it is seen as a nonstarter and we might be going back to a more normal set of agreements that the eu has with other countries around this idea of equivalence. it is the regime the us enjoys. other countries are taking this path but the chancellor phillip hammond feels it is not a good system. it is much more limited than what we have at present and it is
unilaterally accorded by the european union which means it can also be unilaterally withdrawn by them. recognition the country can be used to avert matters which is what switzerland has found. it is broadly seen by the financial sector as sub optimal. it does not cover the whole also. how do you think brussels will receive this white paper that has one type of agreement for goods and a separate one for services and for financial services in particular, a more looser arrangement. will they see this as the uk tried to have the ca ke see this as the uk tried to have the cake and eat it or cherry picking? up cake and eat it or cherry picking? up to this point that would have been the assumption. from the
outset, the council guidelines and all the negotiations so far, the commissioner and michel barnier have been particular about movement of people, goods and services all had to be tied together however the feedback coming back this week after the statement has been reasonably warmed. it remains to be seen if it is simply to tick things over. back to keep the clock running down, keep our hopes up and tell us in a couple of months time hit us with a single market or nothing. which leaves the 27 in market or nothing. which leaves the 27ina market or nothing. which leaves the 27 in a strong negotiating position. thank you very much. it is very early in the morning and you are undertaking some very complicated
decals so we appreciate that. it's a battle royale in the media industry. tuesday morning uk time, 21st century fox raised their bid for the european broadcaster sky. and by the evening us cable network comcast had lifted their bid as well, to $34 billon, a level that many say defies financial logic. and this may not yet be the end. so what exactly are they after? here's our business editor simonjack. why does everyone want to get their hands on sky? there is a global arms race going on in the media world by the merger between disney and 21st century fox in the pipeline, and for distribution. people like netflix beginning to nibble away at home turf in places like the us so they need to get more global and quickly. in sky you have the number one
european pay tv provider. germany, uk, italy, austria, ireland, spain... basically all the plate in one go, massive european distribution and that is precisely what comcast, what 2ist—century fox wa nt what comcast, what 2ist—century fox want and what disney want by its takeover. price becomes secondary to scale and that is why we are seeing that intense heat of war for sky. president trump will arrive in the uk around lunchtime today to begin what's being described as a working visit. that will include a black tie dinner with 150 business leaders hosted by theresa may, at an undisclosed location, with bosses of some big companies like unilever, glaxosmithkline and goldman sachs. but what will the mood in the room be like? ben thompson takes a drive around london, in style, to find out. they call it the spatial relationship and the businesses on
both sides of the atlantic that has meant sales, profits and jobs is it still important today? i am off to meet some british firms that do business with america and i am doing it in all—american style. the uk sells £100 billion worth of goods and services to america every year. looks like machinery and pharmaceuticals and services like banking and insurance. it is a lucrative market and one that is growing weekly. over the last five yea rs, growing weekly. over the last five years, our exports to america have jumped by more than a quarter and that has been good news for this firm. it makes foldable bikes and is selling more than ever in america. three years ago we realise there we re three years ago we realise there were 400 million people in america with a very strong cultural ties, the same challenges we have in the
uk. that is a massive opportunity for us so we took a strategic opportunity to invest. we are learning, it is not easy but the opportunity is tremendous. but not eve ryo ne opportunity is tremendous. but not everyone is happy. america buys much more from the uk than it sells back to us. president trump says that thatis to us. president trump says that that is bad for american jobs so he has imposed extra tariffs on a lot of things that america imports, like steel and aluminium and that is having an impact on british firms. steel and aluminium and that is having an impact on british firmslj was speaking to an owner of a very small field company in the west midlands and he was telling me that he has been exporting his steel to a customer in the us for the last 30 yea rs. customer in the us for the last 30 years. that relationship is now damaged by these import costs, increasing by 25%. the eu is fighting back. it has responded with its own tariffs on american imports
so its own tariffs on american imports so what signal will business bosses wa nt to so what signal will business bosses want to send to president trump when he sits down to dinner with them tonight? trying to avoid a further escalation in the tradable burgeoning between the us and the eu. looking at brexit to make sure that it eu. looking at brexit to make sure thatitis eu. looking at brexit to make sure that it is not something that damages us companies that are based here. and the discussion about deepening trade links through a trade agreement and in the long—term as well. at the moment europe is britain's biggest trading partner, not america but could that changed after brexit? president trump says his keen to do a deal with britain once we leave the eu but there is still uncertainty over brexit and president trump's plans but with jobs, investment and economy growth
at stake it will not be easy. now let's brief you on some other business stories: facebook is to be fined £500,000 by the information commissioner, the maximum fine possible for misuse of data in the uk. our technology correspondent rory cellan—jones reports on the background. personal data — a vital new weapon in election campaigns. but now, the information commissioner has found it has been misused, and a social media giant is facing a record fine. the data of 87 million facebook users was harvested by the now—defunct political consultancy cambridge analytica. the £500,000 fine for allowing that to happen will hardly make a dent
in the social media giant's profits, but the watchdog says the penalty is still significant. it sends a very strong message to facebook and other online platforms about what is expected of them, and that the regulator will step in with sanctions. this report shows just how much of our data can potentially end up being used for political purposes. it is notjust about your facebook details. every time you interact with a credit reference agency, or even a mother and baby club, your data could be sold to a political party. the information commissioner is planning to fine emma's diary, a service for mums—to—be, for passing the data of1 million people to the labour party. the company says it doesn't agree with the regulator's findings, and labour insists the party has done nothing wrong. there's no suggestion that the labour party has behaved unlawfully. all 11 political parties have been contacted by the information commissioner and asked to review their policies.
the watchdog is also looking into whether the leave.eu campaign founded by aaron banks may have used data from his motor insurance business for political purposes. this inquiry has some way to run. rory cellan—jones, bbc news. this is the briefing from bbc news. the latest headlines: britain is preparing for the arrival of donald trump — what has been billed the most controversial visit ever made by an american president. it has been a night of celebration for croatian football fans, after their dramatic world cup win against england. they will face france in sunday's final. celebration in croatia but agony in
the uk. we begin with the story dominating all the news here in the uk, including the i newspaper, and that is of course england's defeat in the world cup semi—final to croatia. the i sums it up simply with
a picture of the captain, harry kane, and the caption "heartbreak. " and the front page of the guardian online features president trump's visit to the uk today. it says the trip will be heavy on flattery and pomp, and mindful to avoid any protests. the financial times picks up on the british government's brexit white paper, to be released today. they claim that prime minister may has given up on the hope of a tight new relationship between the uk's financial services and the eu. now, the china daily runs with the latest us tariffs on chinese goods. it says china has vowed to retaliate over the threat of a further $200 billion of us tariffs, and would impose its own counter—measures.
and finally, a story on the front page of the new york times all about the science behind art. a group of psychologists in the us are trying to
crack the mystery of what is art, and why we like what we like. good luck to them. that is all i can say. with me is henry bonsu, broadcaster and international conference host. good to see you. glad to be back. so we have on the desks of the uk front pages, whichjust give we have on the desks of the uk front pages, which just give such a broad spectrum, but it is all the same theme. we have pride of lions, thank you says the daily express.