tv BBC Business Live BBC News August 20, 2018 8:30am-9:01am BST
on tuesday, a dry day, one or parts on tuesday, a dry day, one or two showers can't be ruled out, a lot of cloud around, thinning and breaking from time to time to give sunshine, quite warm in the sunshine, quite warm in the sunshine, 25—27d, 19—22d further north. turning fresher through the middle and end of the week. we buy. this is business live from bbc news with sally bundock and maryam moshiri. billions worth of tariffs are due to come into force this week between the us and china— what will this mean for the multi—trillion dollar trade industry around the world? live from london, that's our top story on monday the 20th of august. chinese negotiators are headed to washington this week. we'll get the perspective from all sides and find out what — if anything — can hold off this latest round of tariffs. also in the programme a great day for greece — after eight years of economic hardship — the country's bailout programme officially comes to an end.
the financial markets in europe starting the week on the up, we will explain why. hospitals help us heal but they are also an incubator of infections. one company is introducing a revolutionary technology to combat the spread of disesase. we'll find out more later. a third of fruit and vegetables in europe is being thrown away for being too ugly! so would you buy wonky veg? what can we do with the tons now being discarded 7 let us know — just use the hashtag bbcbizlive hello and welcome to business live. this week we will be focusing a lot on trade — because $16 billion in tariffs on both chinese goods going into the us and american goods being imported into china are due to come into effect.
but there is some hope for an easing of tensions as chinese officials make their way to washington. trade is the life—blood of the world's economy — as aaron heslehurst now explains. global trade is truly the engine of the world economy. the value of goods and services traded all around the world last year was worth more than $20 trillion and it's extremely important for trading partners. goods traded last year between the us and china are worth $635 billion. between us and the eu it was and between the eu and china that number was $652 billion. 0ver between the eu and china that number was $652 billion. over the last three decades the exchange of global goods and services has increased at an average of 210%. but the world
trade organisation, the wto has warned that trend is about to come to an end. it's all down to weaker exports. slowing cars sales, and increased trade tensions. free trade has enriched many nations lifting millions out of poverty many believe the world trade organisation system is outdated. including president donald trump. he's threatened to expand tariffs on beijing to half $i trillion which pretty much covers almost every product imported to the us from china. the international monetary fund has warned rising trade tensions between the us and the rest of the world could cost the global economy some $430 billion with america especially vulnerable to an escalating tariff war. the us imposed 25% tariffs on $34 billion of chinese stuff, ranging from tractors to handbags, even umbrellas. and that prompted beijing
to retaliate in kind. aaron heslehurst is at london gateway — part of the port into the capital. ifi if i can have a look at your lovely face, why are you at the london games way and why is it important for the uk trade industry? the clue is in the name, here i am, i wanted to show you a ship from australia by diebold tele in the second, this is the gateway for all these big container ships to come back and deliver stuff, not just container ships to come back and deliver stuff, notjust for london but across the uk. you are looking at the msc florentine, i didn't plan this, guess first she is from, australia? i didn't plan this, guess what they are off—loading, beer, wine and meat, everything for the british summer barbecue but look, this is so important, we are talking about global trade and tariffs and
taxes, what you are looking at here is the dish all i said and of globalisation, you think globalisation, you think globalisation, you think what globalisation, you think what is globalisation, you think what is it, globalisation, you think what is it, what is it, this globalisation, you think what is it, this is globalisation in action. and you've also got to think about an industry that pretty much runs the global economy, a lot of people don't know much about it, we don't even think about it. do you ever think about the men and women who have weathered the winter storms to ring you cereal? get your head around this, 90% of everything goes ona ship around this, 90% of everything goes on a ship and a container, from the seat you are sitting in to the yoghurt and banana you have beaten to the clothes on your back and the shoes on your feet to the steering wheel in your car and the television you are watching right now, all thanks to an industry that has been around since man learned to float. but of course, there are some choppy waters ahead, we are talking about the tariffs, more tariffs, if we are importing or exporting less, that
means the industry takes a hit but it's already taken a hit, the prices to ship stuff compared to last year down 15% but fuel is up 40% and there are more ships and containers than there were last year, several percent more, and overcapacity. it's an industry that is fascinating and asi an industry that is fascinating and as i said, very cheap, can i get this fact in, i love this, scottish cod, it is cheaper for scotland to ship its cod 10,000 miles to china to get filleted and return to scotland, it's cheaper than getting the scots to follow the themselves. i will be here all day talking about trade tariffs and an industry that is fundamentally important to the global economy. i can understand that, i tend to fill at my card and haveit that, i tend to fill at my card and have it exported as well. it is interesting and intriguing, the fact that aaron was sharing, we have so
much more on that later, we will go live to shanghai from the chinese death on the global discussion about trade. absolutely. in a moment we'll get the chinese perspective — but first let's take a look at a few of the other stories making headlines today. greece is now free to borrow money on the financial markets. the country's bailout programme officially comes to an end. the government says it can stand on its own two feet, after three financial rescue packages totalling over 300 billion dollars. a standard chartered bank executive says tough demands by eu regulators could mean morejobs being moved from the uk than previously thought. the uk lender is turning its frankfurt office into a european base due to brexit. us retailer walmart now has a 77 percent stake in india's e—commerce giant flipkart. the investment includes $2 billion in new equity funding, to help speed up flipkart‘s growth. walmart announced in may it had agreed to pay $16 billion for the stake. zooming in on the world's top 2 economies — us and china — and their trade war.
both countries are getting ready to slap 25 percent tariffs on $16 billion of goods this thursday. and that would bring the total tariffs to $50 billion. our china correspondent, robin brant is in shanghai. robin, tell us more about this discussion between chinese representatives and those in washington on trade, the rumour is they are going to get together quite seen? we know there is going to be further it sit down talks, they were confirmed last week by the chinese ministry of commerce but its low—level officials who will be going to washington, dc, the wall streetjournal reports that will happen in the next couple of days. so it's not going to be the us treasury secretary on one side and the chief economic adviser to the
chinese president on the other, it's low—level chinese officials, good news they are sitting down and talking and dry to prevent this further escalation in for now is definitely a trade war but nonetheless it's low—level officials and the expert agent for any kind of serious resolution is particularly low. thanks very much indeed. we will keep a close eye on that. any more news on those discussions, let's look at the markets. this issue of trade was very much on the mind of investors in asia today. cited as one of the reasons they had a mixed session, japan closing down a mixed session, japan closing down a third of a percent lower, hong kong and china and markets in asia having a better session. a strong yen at the moment which does not help exporters listed on the tokyo markets. let's look at the state of lee in europe. brand—new trading week under way. you can see so far, all the main markets headed higher,
all the main markets headed higher, a big loser i need to mention is mulberry, the luxury handbag maker, shares to date down 30% in london. it issued a profits warning, two reasons, seeing a big drop in sales but also it's been hit by £3 million charge from the house of fraser by alps. —— the house of fraser buyout. so we're talking trade today — and trade tensions between the us and china are starting to bite for some american companies. paul blake went to meet one business owner who's not sure he'll be able to stay afloat. to many, trade wars can sound like a lot of hot air. but forjohn hoge, a boat builder in portjefferson, long island, new tariffs on china could sink some of his business. we dodged the first bullet. we got grazed by the second one. and we got a broadside from the third list of tariffs. almost everything we sell was affected on that third list. that third list could take effect as early as september. its products like this boat that
are emblematic of global supply chains, designed here in the us, made in china and sold here in the us. and now potentially subject to donald trump's tariffs. a tariff is a tax, quite simply. it's a tax not on the chinese, it's on americans who trade with china. and any business that faces an extra expense has no choice but to pass that on to our customers. after months of anxiously watching this trade war escalate, john hoge and many other business owners are hoping president trump can dial back the rhetoric and take off some of the pressure. that's the view from the us. sophie kilvert senior investment manager at seven investment management thank you so much for coming on the programme, we are talking trade this week on business life, you, working
in the city, what's the view on the current trade situation from investors, and how worried are people in this city? the markets have been pretty sensitive to the tops of tredworth throughout the year, we saw since the beginning of february end of january, year, we saw since the beginning of february end ofjanuary, reacting badly to the reaction of the announcement of tariffs. since then, markets have relaxed, they are still rising, on wednesday it's the chance it will be the longest one market in history, markets looking through a lot of the noise in this trade war, looking at the economic fundamentals, in the us, it's still pretty good, we don't know what impacta pretty good, we don't know what impact a trade war and discussions will have. i think the fact they are talking, the us and china, the us talking, the us and china, the us talking to europe and mexico also this week, the fact that associations are going on, the markets are looking through that. also we understand investors will keep an eye onjackson, some of the most powerful central bankers
meeting, it's an annual powwow at what they have to say is important. it is important, and we look at it, to see whetherjerome powell will talk about reducing the balance sheet in the us, look for some impact on interest rates and the direction they are going, officially that the is the economic impact of the superstar companies but i think we will probably be talking more about economics than specific companies. sophie, thank you, you'll be back with us to talk through the papers ina be back with us to talk through the papers in a moment. thank you. including greece. still to come fighting infections where they start a revolutionary technology that puts anti—microbal agents straight into gloves could improve hospital survival rates significantly. you're with business live from bbc news. first let's talk house prices, we
are told in the uk there are two obsessions. house prices and fruit they are going. the property website rightmove says there was a 2.3% drop in the average asking price of houses put on the market last month. analysts for rightmove describe august's discounts as a "late summer sale" as sellers to try to find a buyer before christmas. miles shipside is a housing market analyst at rightmove and he joins us now from our salford studio. good to see you. tell us about your latest research, what does it tell us latest research, what does it tell us about how the market is doing? looking at august in particular, the sellers that come to market normally have a pressing need to sell because buyers are distracted by a holiday and they need to price more aggressively and undercut the competition if they are looking to sell. obviously as you said, a bit ofa sell. obviously as you said, a bit of a late summer sale, opportunity for buyers to pick up a bit of a bargain but from a sellers point of
view, if they want to be in the new home by christmas, 18 weeks away, they have got to get their skates on. big difference to what is happening in london, outside london, the north and south. indeed, a lot of that driven by the cooling london market and commuter belt, whereas the midlands and north still buoyant markets, but having said that, this month, all regions dropped as sellers realise buyers affordability is stretched and as i say, they are distracted by perhaps lying on a beach rather than looking for property. what extent is brexit playing a part in the housing market in terms of peoples perception, their concern, lack of clarity about what the sap mixture? obviously political uncertainty puts people off especially on major purchases and it's the top of the ladder that is being affected most, 4—5 bedroom plus robert hughes. lower down the price brackets people have more
pressing housing needs, often less discretionary, they have to move, families are growing, a lot of people in law braced brackets are carrying on but it's more really about stretched buyer affordability and since we sort this price upturn start in 2010, average prices have gone up by around a third, wage growth hasn't kept pace, buyers affordability is stretched. we are going to see a slowdown because of that. thank you, miles,. your‘re watching business live — our top story... trade tensions set to escalate £16 billion worth of tariffs set to come on—board between us and china. now let's get the inside track on bugs, and i'm not talking insects...
microorganisms such as bacteria are everywhere but nowhere more than in hospitals. and the number of hospital acquired infections have been steadily rising. one problem is microbes being transfered by staff touching patients, whch is why health care professionals use gloves — and hand sanitisers. our next guest's company has come up with a solution that inbeds anti—microbial molecules directly into gloves in order to combat this cross contamination and the glove kills germs on contact. rob gros, ceo of chemical intelligence. you came up with this idea and its been a realjob, because you came up with the idea many years ago, tell us with the idea many years ago, tell us how, but it's only been dismayed that you have managed to lunch. us how, but it's only been dismayed that you have managed to lunchlj was working distributing gloves to the nhs back in 2010. and that was
after the pandemic, the swine flu, there was a lot of promotion about hand hygiene and a lot of media attention on hospital acquired infections and mrsa and i couldn't understand why there wasn't any antimicrobial properties and clubs. sorry, you are not a scientist, a chemist, how did you go from bad idea to coming up with these girls? iformed a idea to coming up with these girls? i formed a team with some specific expertise, the premise was complicated in making this happen which is why i don't think it had been done before you had to produce technology that was cheap, it would have to have a very good safety profile and also had to have a very rapid kill, people don't work clothes for very long and hospitals, about five minutes, the kill rate had to be fast. combine inc those three parameters was a complex thing to do. you had the idea but how did that go from an idea to being able to start this company amstrad making these girls? we started to look at
traditional biocides but in the end we had to synthesise a bespoke design, we had a very small team of scientists, doctor paul wyatt who had expertise in oxygen which is the technology we use, we partnered with a company in malaysia one of the biggest manufacturers in the world and we put the glove know—how and antimicrobial expertise together and we came up antimicrobial expertise together and we came up with the glove which we launched this year. you make it sound this easy but it took a long time and you to a lot of this yourself whilst it was an idea that wasn't actually a physical product, it was only very recently that you've have people on board to help fund. that's true, i did initially funded, i had, my distribution company which was being drained of resources , company which was being drained of resources, it was furry stressful in terms of getting fund name from anybody because but in the end i
managed to hang in by a thread until i got my first license agreement. and that was in malaysia and they began to funded. the idea is to sell the gloves globally, will they be cheaper than the current gloves available to the nhs? we don't set the pricing because it has to come from the manufacturer and go through distribution but we are producing at a low cost and the supply chain, no wonder wanted to be a barrier, they wa nt to wonder wanted to be a barrier, they want to make it a universal standard club, available to everybody. it's not just gloves, is club, available to everybody. it's notjust gloves, is antimicrobial technology element is going to be used in other areas as well. we bespoke this molecule and it's designed in the way it can be adapted to other medical devices so hopefully we can help reduce infections on other high—risk medical devices. this is a game changer when it comes to the spread of infection potential, it could be a huge game changer. we've never
felt we aren't the silver bullet, organisms are building resistance all the time and producing different strains, it's a major problem, what we are hoping as we can provide some of that help to reducing infection and if we can reduce infection and help that process we can also reduce the financial burden on the health service. just thinking in western hospitals and health care organisations there is a very robust systems when it comes to infection spread but in developing nations, areas where it's difficult, there might bea areas where it's difficult, there might be a disaster or disease spread, it could be quite a low—cost way of preventing disease spread. absolutely, at the moment standard gloves a passive barrier, the technology we incorporate has been proved to effectively reduce the contamination you get on the gloves, that in turn should help the potential for reducing infection that in turn should help the potentialfor reducing infection in high risk areas. we wish you luck
for the future. thank you so much. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. and wonky fruit and veg. don't forget about that. stay up—to—date with all the business news as it happens on the business life page. those inside analysis from our team of editors around the globe and we wa nt to of editors around the globe and we want to hear from you. of editors around the globe and we want to hearfrom you. get of editors around the globe and we want to hear from you. get involved on the web page. and we are on twitter. and you can find us on facebook. business lives, on tv and online, ford you need to know, when you need to know. many have you been in touch about your wonky fruit, some of them we can read out, some of them dodgy language but sophie is back, let's talk about greece, today is the day
they emerge from eight years of financial bailout as it were. depends which paper you read or who you listen to as to what they think about the whether it was successful or not. that's right, they've come a long, long way but i think there is a long, long way for them to go, the economy is 25% smaller than it was when they went into this process. as a government they had to cut huge amounts of social spending, not in a position to start doing that in a big way, they are free to borrow an international markets which will make a difference, funding is secured the next few is, but a long way to go for greece. one statistic i read today which i thought entered the picture, three points 7 million people employed, to .7 million pensioners, that statistic alone gives you a sense of the challenge they are facing. indeed, somehow they are facing. indeed, somehow they have got to keep up raising taxes, a lot of people in greece having been through this period of
austerity, they are exhausted, they wa nt to austerity, they are exhausted, they want to feel they can but lacks but they are not in a position to do that. let's talk about wonky fruit and veg, sally has been so keen to talk about this. it's on the bbc website but also in eye news, if i can bring that up, a shocking amount of fruit and veg not making to shops because they are the wrong shape and size but they taste the same. that tells a lot about western society, the way we treat these fruit and vegetables. a third of them. that's right but i think things are changing, people are more aware of this situation. in the past people wa nted this situation. in the past people wanted straight carrots and bananas that weren't bentley but people recognise the economic impact, so... we asked people to tell us what they would do, mark says sell at cheaper and watch it fly from the shelves. i would buy it cheaper. some supermarkets do that. dan says it could be marketed to people who choose make smoothies, it could be
put into salads, juices, ready meals. making me hungry. juicing could be an idea. it's a great way to use up fruit and that doesn't look so pretty. would you eat a wonky carrot? it tastes the same as a straight carrots. did you know original carrots were purple, then they were first created, they were purple. you can still get purple carrots and potatoes. to be honest, it doesn't that shape. they taste the same. we all come in different shapes and sizes. why shouldn't fruit and veg? that's very deep philosophy but this time of the morning. sophie, so good to have you on. thank you so much for your company. that's it from business live today. there will be more business news throughout the day on the bbc live web page and on world business report. and aaron is in the london gateway today. we'll see you again tomorrow. hello. it's been a rather warm start
to the day, temperatures getting into the 20s across england and wales, fresher than north across scotla nd wales, fresher than north across scotland and northern ireland. for many of us today quite cloudy, patchy light rain and drizzle particularly where it is weather front straddles northern ireland through central and southern scotland, western areas of england and wales. that's producing more moisture through this morning. a bit fresher further north across scotland, that you have sunny spells today, some breaks in the cloud across england and the far south—east of england in particular. further west staying cloudy, misty and perky around coastal hills of wales and south—west england, but for north—west england and northern ireland. bridge weiss, 17—20d, some
sunshine in the south—east, temperatures reaching 25—26d. this evening and tonight, quite cloudy, misty and murky, especially around the irish sea coasts of wales and england, warm and muggy night again, temperatures about 16—17d per england and wales, fresher further north across scotland. taking us into tuesday, weather system moving its way into the far north—west, introducing some outbreaks of rain throughout the day, further south, high pressure still holding on, mostly try and settle for england and wales, the cloud in the morning running and breaking, some sunny spells. they beat the odd shower but for most of us staying dry, as i mentioned across scotland, the far north of northern ireland, turning cloudy, here's some outbreaks of rain moving in, temperatures still about 20—2060 greece in the south—east. but war and muggy air it
during tuesday will gradually this appearas during tuesday will gradually this appear as pressure conditions from the north—west start to infiltrate in and with that there will be a weather front living south and east. this band of rain moving south—east during wet misty, for scotland and northern ireland the rain clearing to give some sunshine, fresher feel to give some sunshine, fresher feel to conditions. across england and wales quite warm and muggy, the rain spreading into the midlands and south west england, temperatures in the south—east still about 26 degrees, further north temperature 17-19d. the degrees, further north temperature 17—19d. the rain clearing into thursday, for many of us by the end of the week feeling fresher. hello, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme. families living on a north london estate have exclusively told this programme that they are living in fear — after being told that their block of flats is at risk of collapse. i'm feeling bad, because i'm scared.
igoto i'm feeling bad, because i'm scared. i go to work, i leave my children at home, and i'm scared. because i don't know what is going to happen. they say it is not safe in this building. a problem with the construction and design of their block has been known about for many years, but their north london council has suddenly told residents that they need to be out by october. all of a sudden theyjust want to get us and kick us out, and put us somewhere maybe worse.