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tv   BBC Business Live  BBC News  November 6, 2018 8:30am-9:01am GMT

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this is business live from bbc news with sally bundock and ben thompson. china welcomes the world as it talks global trade in beijing. but will the trip he overshadowed by its dispute with the us over tariffs? live from london, that's our top story on tuesday the 6th of november. in beijing china hosts top trade officials — while in shanghai it's trying to convince thousands of foreign firms that it's open for business and that it does plays fair. we will talk you through what is at sta ke. also in the programme... as the us goes to the polls — we'll find out what role tariffs could play in the midterms. for financial markets in
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forfinancial markets in europe, the trading day has begun. it is a mixed picture for now, we will talk you through the winners and losers. how do you persuade kids to turn off the computer and get outside? we speak to one entrepreneur who's trying to help keep but you needs an app to access it! and one in five britons have already done their christmas shopping — unlike their european neighbours — so are people in the uk particularly organised 7 let us know, have you done yours? i haven't! just use the hashtag #bbcbizlive. i have to say, i wish i was one of the 18% of brits who have done my christmas shopping. i am not, the 18% of brits who have done my christmas shopping. iam not, i the 18% of brits who have done my christmas shopping. i am not, i am afraid to say. the great and the good of global trade are in beijing today, meeting chinese prime minister li keqiang. the visit by bosses
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of the world trade organisation, international monetary fund and world bank comes as china's trade war with the us continues to cause widespread concern. china is keen to convince the world that it is open for business — and that it really does play fair. earlier this month it cut import tariffs on more than 1500 goods including metals, wood and even gemstones. but the reductions were fairly meagre — less than 3% on average. but even if progress on liberalisation seems slow — firms are investing more and more money in the country. last year there was $136 billion in foreign direct investment. one of those investing is tesla — which last month spent $140 million buying land in shanghai for its first factory outside the us, with reports it could spend as much as $5 billion on the new plant. kuangyi wei, who's the head
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of strategic research at parker fitzgerald, is with me now. good morning, welcome to business live. sally was running through the details of what is at stake, i know we have heard this talk from china about opening up, liberalising trade, making it easierforforeign firms to access china. what are they after in china? that is an interesting question. firstly, the exporting in shanghai, china is focusing on imports, it is keen to change the image from the world's factory to a welcoming market in terms of investment and business. you may also say this is notjust about china trying to defend its role as the guardian of international trade and globalisation, but trying a bit of a defensive mood in the middle of the trade war and trying to leveraged the consumer market that is growing
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asa the consumer market that is growing as a diplomatic tool. i want to comment about defensive strategy in a moment. looking at what we have heard out of beijing, they are talking about reducing taxes and fees, market trading costs. they say they will open up financial markets including banking and securities. have we heard this before? last year is different in the sense that there have been some quite concrete moves in particular around the financial services sector when it comes to opening up, allowing forforeign when it comes to opening up, allowing for foreign ownership in banks and the majority stakeholder in insurance and asset management. but western business in western countries will want to see china walking the walk as well as talking the talk, more progress will need to be made with relaxing rules around joint ventures with chinese companies in certain sections and easing the pressure on technology transfer. to go back to your idea of being on the defensive, we know there is a well—documented trade war between the us and china, tariffs on
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the goods to try to rebalance that relationship. as you said, i wonder how much china is on the defensive, about trying to re—establish balance, but how much things might change to be get through the us elections. maybe tomorrow or thursday things might look different ones who know what is happening in the white house? i would not think so, before the mid—term election there is a bit more talk in media. it is not about trump, it is about the us, it is a bipartisan issue and whatever happens after the mid—term election, the presidents have a lot of authority when it comes to trade deals and retrieving from them. i don't think it will change a lot after the mid—term election. 0ne fall is to watch. thank you for running is through those issues, kuangyi wei, head of strategic research at parker fitzgerald. let's take a look at some of the other stories making the news. eurozone finance ministers are piling on the pressure for italy to change its spending plans.
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the ministers ended a late—night meeting in brussels by backing demands from the european commission for rome to submit a revised budget by november 13th. italian leaders say their plans are affordable — and that they won't back down. it's being reported that amazon will split its second headquarters between two cities. the company's plans to invest $5 billion on a new hq have sparked a frenzy of interest from cities in the us. and canada. it has announced 20 finalists and is scheduled to make a final decision by the end of the year. the wall streetjournal says the company will situate the new hq in two locations. asian airline cathay pacific is being investigated by hong kong's privacy watchdog after last month's huge data breach, which saw the personal information of 9.4 million customers exposed. the watchdog said it had received scores of complaints linked to the data breach, which cathay pacific revealed seven months after detecting the violation. chinese tech firm tencent is tightening limits on children
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playing their games. the system checks players‘ identities against a police database and will apply to all tencent games by 2019. it will mean children under 12 will only be able to play for an hour a day, and older children can play for up to two hours, but not during a night time curfew. that is good news. your kids like computer games? they do. i can't imaginea curfew computer games? they do. i can't imagine a curfew would go down very well. it is great if you are not enforcing its, you can blame tencent, nothing to do with me! more now on china — and the ongoing row over trade. the chinese vice—president — who's been speaking in singapore — presented his country as a champion of free trade. he also said china is ready to hold talks with the us to end the trade war. let's get the details from shara njit leyl, who's at the new economy forum going on in singapore
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nice to see you. there have been big names that this forum? very big names that this forum? very big names indeed. you have the likes of henry kissinger, hank paulson, the former mayor of new york mike bloomberg. it is his offence, his company put this together and the keynote speech delivered right here was in china's vice president, who said it essentially that china was committed to finding some sort of resolution to the trade war with the united states and what is really crucial is that he pretty much i cared what his boss president xi jingping said yesterday in shanghai, at the china international import expo. xijingping at the china international import expo. xi jingping reiterating at the china international import expo. xijingping reiterating that china is a champion for globalisation and free trade and that china would start to open up its markets to foreign investment. what is really interesting in hearing from these two top brass in
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the chinese government at these international forums the chinese government at these internationalforums in the chinese government at these international forums in the space of two days, it pretty much suggests one thing, that they are incredibly worried about this china/ us trade spats and they are not the only ones. pretty much everyone else i have spoken to at the forum, including the likes of former australian prime minister kevin rudd, has said likewise. many have acknowledged the us is firmly entrenched in a trait spot with china but they accept that how they get along will determine global stability and growth. thank you so much. the new economy for is taking place in singapore, interesting to hear what the delegates are discussing. a much weaker yen injapan, higher across the board in asia, markets are ina across the board in asia, markets are in a real holding pattern with the us going to the polls today for the us going to the polls today for the mid—term elections. let's look at europe trading at the moment. some of the big losers in london,
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morrisons, one of the biggest losers on the ftse 100, morrisons, one of the biggest losers on the ftse100, down over 4%. also bookmaker william hill's shares are down over 7%, it has lowered its outlook for future profits. down over 7%, it has lowered its outlook forfuture profits. new down over 7%, it has lowered its outlook for future profits. new look has very disappointing sales, some big names are struggling. and samira hussain has the details of what's ahead on wall street today. pizza chain papa john's just can't seem to shake the negative publicity from its very public dispute with its founder, john schnatter. now, it's now having an impact on the company's financials. analysts are expecting papa john's to report a fall in third—quarter sales when it reports earnings on tuesday. this, despite a rebranding effort. earlier this year, john schnatter resigned as chairman of the board over his use of a racial slur on a call with a marketing firm. also reporting earnings — cvs. the pharmacy is buying health insurer aetna — a deal that won antitrust approval just last month. so investors will focus on comments about the deal as well as the company's performance
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in the last quarter. samira hussain in new york. joining us now is trevor greetham from royal london asset management. everyone will be keeping an eye on the mid—term elections, political risk is very high on the agenda? we have seen lots of volatility in the stock markets, one of the worst 0cto breds since the financial crisis, volatility in currency markets due to political risk and the trade was with china. —— one of the worst 0ctobers since the financial crisis. the blog widget what happens with trump and the midterms. it has huge implications for the global economy. let's talk about brexit, theresa may holding a cabinet meeting today and trying to sound as bullish as she
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can? currency volatility for sterling particularly is quite high at the moment, because the markets can't figure out what will happen. everything is on the table, from a no—deal brexit which could see the plans go down a lot, some kind of deal, would you go through parliament, plus the possibility of no brexit. there was a big nationwide poll yesterday which had a 54% majority for remain if there was a second referendum, we are dealing with massive uncertainty and the pound cannot decide which way to go. there will be more stock market volatility and paul stirling volatility. ifs, buts, and maybes. we will speak more to trevor later. how do you persuade kids to turn off the computer and get outside? a big question for many parents if they have just about the half term holidays in the uk! we speak to one entrepreneur who's trying to help keep children entertained, while cutting down on screen time. you're with business live from bbc news. uk energy regulator 0fgem has announced a new price cap
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which it says could give 11 million households a fairer deal on energy prices. price protection for 11 million customers on poor value default tariffs will come into force on one january 2019. rob salter—church is from 0fgem — he's in the newsroom for us. tell us more about how this works? what the cap that we announce today does is provide a fair price customers. we have looked at the underlying costs of providing energy to these customers and we have set a limit which means all suppliers will have to reduce their prices were default deals below the level announced it means a £76 saving for customers on average on these bills,
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and going forward they know they will always pay a fair price for energy. is a cap the way to do it? we talk about whether energy firms are preying on the vulnerable, this isa are preying on the vulnerable, this is a blunt instrument to keep prices down? this is a very important temporary protection we are putting in place to protect customers who are disengaged. we know that over many yea rs, customers disengaged. we know that over many years, customers who are disengaged have been charged more than they should be by energy suppliers. we are providing protection in the short whilst in the longer term looking to reform the market, introduce ways to make it easier for customers to switch supplier and find better deals so that in the long run all consumers will be better off. how will you police this? what are they penalties for noncompliance? ultimately we can impose a penalty of up to around 10% of annual turnover. we have some really strong believers, and because this is so important the customers we will take a hard line on ensuring suppliers stick to the rules. thank
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you very much, rob salter from 0fgem. more details on the website on that story. and more on the website, news from morrisons, the biggest fall on the ftse 100 morrisons, the biggest fall on the ftse100 in early trade at its third—quarter results showed a slowdown in sales. shares down more than 4%, it shows how fickle investors are. morrison is doing quite well versus some other rivals in the supermarket sector, sales we re in the supermarket sector, sales were up, it supplies goods to amazon and mccole ‘s. amazon wanted something bigger, the biggest fall on the ftse100 so far this morning. you're watching business live — our top story... trade bosses are in beijing meeting the chinese premier — amid rising tensions between the us over tariffs. meanwhile in shanghai china is welcoming thousands of foreign firms — including ford, general motors
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and tesla — in an effort to convince them that china is open for business and that it does play fair. let's show you the financial markets quickly, europe has been trading for 45 minutes and i am told we will not show you, so we won't! they were mixed! that is all you need to know! pretty volatile, as we heard from trevor earlier, lots of political risk. we have to move on, that is why we are not showing numbers! if you're a parent, you might be recovering from the half term holidays in the uk — the challenge of keeping your children entertained, without always resorting to the tv or computer. a trip to a&e, mine were outside! ended up in hospital! is he 0k? he is fine! and that might have meant wading through parenting forums, local noticeboards and websites to see what events are on for kids locally. here in the uk there are as many as nine million parents with children under 11 years old.
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well, after becoming frustrated that there was no single place providing information about children's activities, four entrepreneurs launched an app called hoop in 2015. today it lists over 100,000 different family—friendly activities, classes, workshops and events each month. and it has around 10,000 event organisers using the platform to promote their events. dan bower, a co—founder and the ceo of hoop, is with us now. nice to see you, welcome to the programme. you nice to see you, welcome to the programme. you are nice to see you, welcome to the programme. you are a relatively new pa rent programme. you are a relatively new parent yourself, you know all about this, but for you that was not the impetus of setting up the website, you are not apparent when you establish it? no, it was a problem my co—founders faced, we talked about how hard families founded to discover things going on, despite
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the huge diversity and incredible number of activities, we felt it needed a single app that people could use to find everything happening for their kids. could use to find everything happening for their kidslj could use to find everything happening for their kids. i had not heard of you, and i thought, i don't know if i would find you because i already get so much information to my children's school bags, coming out of school, local websites, facebook pages for your local area etc, there is so much readily available so why would i try to find you? hoop is really comprehensive, thatis you? hoop is really comprehensive, that is what families love. there are 100,000 activities happening, you get a real market view. they are all age—appropriate and we have reviews and ratings that add an additional layer on top. how do you make many macro? the obvious ones, the big businesses that might spend many macro, you get commission? we accept bookings. so the big ones you would know about anyway, theme parks etc, concerts and events, how do you
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make money from the church old village fete get—togethers? make money from the church old village fete get—together57m make money from the church old village fete get-togethers? it is a commission model, every time someone makes a booking we take a cut. it is really important for workshops and camps happening over the summer, there is a much larger price, the commissions are much greater. we think it is important we have everything, one in five of the activities are free, that means people really trust hoop. activities are free, that means people really trust hooplj activities are free, that means people really trust hoop. i imagine i would go to hoop to find out what is going on and then i would pay at the door, that way i am not paying you a fee. the commission is taken from the organisers of the cost is the same as on the door. this month we should have our millionth install, getting close to over one in ten families in the uk. it is showing good potential. this is by no stretch your first business, you used to rowan,
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used to rowan, use old but for a hefty sum, the figures very bitter and $40 million. —— you used to own. there is a huge push to do absent websites and others do a similar thing? there are competitors but no one has the conference of nature that we do —— there's a huge push to do apps and websites. i think the biggest lesson websites. i think the biggest lesson we have learned is how to manage a database as big as the one hoop has, at vouchercodes we had a similar problem, we had to keep the discounts up to date and ready to use. we had to keep the activities up use. we had to keep the activities up to date and hoop and make sure they are all proper. i wish we could talk more, there is much to discuss. thank you for coming in, dan bower, one of the co—founders of hoop. more now on the midterm elections. one of the states with a tight senate race is indiana, which is the biggest steel making state in america. kim gittleson went there to find out
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what role it's playing in the race, and the answer might surprise you. i didn't mean to disturb you... for the past few weeks, derek morris has been going door—to—door to convince his fellow steelworkers to vote for labour—friendly candidates. he's talked about health care and outsourcing, but one subject has been complicated — tariffs. it's helping some in the steel industry, but it's hurting the farmers. so, you help us, but you hurt them, and at the end of the day it's not about substance. he's not the only one struggling to figure out where trade fits in this particular election battle. phil ramsay has been a farmer his entire life, but this year he's only sold half his soy harvest after demand dried up due to a trade war between the us and china. although indiana is heavily reliant on agriculture and manufacturing, tariffs have yet to be really felt here economically, which is why voters have chosen to focus on other issues. i don't think tariffs are going to have much to do with voters' decisions, one way or another. maybe 1% will even
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think about tariffs. they are going to be thinking more about immigration, they are going to be thinking more about those hot button social issues. with the booming economy blunting the pain from tariffs, here in indiana, this midterm election fight has become more of a referendum on president trump's personality, as opposed to his policies. kim gittleson, bbc news, indianapolis. full coverage of what happens in those us elections is right here on bbc news over the next 24, 48 hours. trevor is back as promised. here is another story in the new york times, crazy work hours and lots of cameras, silicon valley goes to china. sounds quite worrying to me. this is a story about american technology anja klinar is going to
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china and realising that they think their pace of life is fast, in china they are seeking new funding three times year, it says they are working 14 to 15 hours a day at least six days a week. when we say they, who is that? technology executives, management people, entrepreneurs coming up with new ideas. and the creative people. and talking to the guests in the green room beforehand, he was saying but sometimes these creative groups have bunk beds in the office so they can have a quick sleep and carry on. it is worn as a badge of pride, being exhausted at work is not seen as a bad thing that you have worked so hard that you need to sleep. if i was working 14 or 15 hours a day, i would be dead after week. many entrepreneurs we meet and many who are starting start—ups or small companies, it is explosive undermines your mind, body
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and soulfor a explosive undermines your mind, body and soul for a period explosive undermines your mind, body and soulfor a period of time. it depends on your age, where you are out in life, your responsibilities etc. some people in their early 20s, it is what they are living for. in my 20s i was working those hours, i can understand that, but the idea of it being held above the sensible thing to do in the long run is not for me. when would you do your christmas shopping?! so this is on the bbc news website, one in five brits has already done their christmas shopping according to this story. who are these people, trevor? these crazy people?” to this story. who are these people, trevor? these crazy people? i have not met any of them! they are not crazy, they are very organised. many have been in touch with us, quite a few of the one in five. peter from scotland, with us, quite a few of the one in five. peterfrom scotland, people buy early because they live by pay cheque to pay cheque so they are
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buying a little here, a little glare and they hope that by the time christmas comes they have not forgotten anyone and there is money left for the turkey. sophia in costa rica says my family would do christmas shopping in mid—november. those who have already missing out on black friday and cyber monday, the big discount days which come in november. cyber monday, the big discount days which come in novemberlj cyber monday, the big discount days which come in november. i think it is rubbish anyway. the international angle is interesting, the most organised nation in the survey was the dutch. for christmas. two thirds have done their shopping by the end of november. the least organised the french, 73% to... of november. the least organised the french, 7396 to... c'est la vie! one viewer in india says it is all about diwali at the moment. happy diwali. and it is about when the hype starts. trevor, thank you very much for coming in. if you are out shopping, enjoy. full coverage of the mid—term elections over the next day or so. goodbye. we have some patchy mist and fog
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this morning which is quite dense in places. most of that should tend to clear away but the weather picture is quite messy. we have a big area of low pressure situated towards the west, a number of weatherfronts moving into mainly western areas. it is bringing a southerly wind, which is bringing a southerly wind, which is why it is so mild at the moment and temperatures today are way above average for the time of year. miles again today, quite breezy, windier than yesterday and there is some rain around, particularly in western parts. we could see a shower through the morning, the mist and fog clearing away. brighter skies across many eastern areas. further west, remaining quite cloudy and we will continue to see showers and longer spells of rain moving in later this afternoon perhaps across much of south—west england, west wales,
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through to anglesey. for northern ireland, quite if you showers through the day, more persistent rain moving in. showers across the west of scotland. it is quite windy, the wind is coming in from the south. temperatures are about five to seven celsius above average. 13 in northern parts. down to the south—east, temperatures could reach 17, perhaps even 18, with some sunshine. tonight, the rain in the west continues to move gradually east with these weather fronts. quite a messy picture into wednesday, many more of us will see some rain. quite a wet start to the day on wednesday, the rain brightening up into more showery rain through the afternoon. more persistent the further west you are, some brighter skies in north—eastern parts, maximum temperature is 13 or 14, may be down by a degree or so compared
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to today. into thursday, one weather fronts moving out of the uk, spreading from the west. the western areas will see the more unsettled weather, always some showers, prolonged rain moving into south—west england west wales, rain clearing out of the north of scotla nd clearing out of the north of scotland but for much of northern and eastern areas of the uk it is looking mostly dry with sunshine, temperatures about 13 or 14. have a good day, goodbye. you're watching bbc news at nine with me annita mcveigh — the headlines this morning. americans prepare to deliver their verdict on president trump as voting in the mid term elections gets under way. i'm not on the ballot, but in a certain way i am on the ballot, so please go out and vote. how we conduct ourselves in public
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life is on the line. how we treat other people is on the ballot. five men are arrested after a video emerged showing a model of grenfell tower burning on a bonfire. theresa may's cabinet meets shortly — to discuss her latest attempts to resolve the irish border issue and finalise a brexit deal. the number of patients waiting for nhs tests and scans is increasing — a bbc investigation finds! in 11 radiographer posts is vacant.
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