tv Business Briefing BBC News November 15, 2018 5:30am-5:46am GMT
this is the business briefing. i'm sally bundock. a cautious welcome from business for the draft brexit deal but will it ever get through parliament? plus, the teenage vaping craze — why flavoured e—cigarettes are leaving a bad taste in the mouth for us regulators. and on the markets most stocks are headed lower in asia following another slide on wall street but tencent‘s strong earnings is keeping shanghai and hong kong slightly up. more on brexit. we start with brexit because, as you've been hearing, uk ministers have approved a draft withdrawal agreement, struck after months of negotiation between britain and the eu.
the draft runs to 585 pages. let's take a look at what's in it. and what is relevant for business. it calls for a free trade area for goods between the eu and uk, with zero tariffs and quotas. and it promises what it calls ambitious arrangements on services and investment, including new arrangements for financial services. but the uk will be able to do its own trade deals with other parts of the world. free movement of people between the two will end, allowing the uk to bring in a new skills based immigration system. but there will still be visa—free travel for tourism and short business trips. the rights of 3 million eu citizens in the uk and 1 million uk citizens in the eu will be protected. a comprehensive air transport agreement will keep planes flying between britain and the eu, and a deal on energy will allow electricity and gas
to continue to flow. the text also covers the so—called "backstop" for northern ireland, which guarantees there will be no return to a hard border with the republic of ireland if the two sides fail to do a deal in time. in that event, the uk as a whole would stay aligned with the eu customs union. there would also be a 21—month transition period to give businesses time to prepare. so although britain leaves the eu on 29 march 2019, nothing will change until the end of 2020. britain has also agreed it will pay a fair financial settlement — or divorce bill — of as much as 39 billion pounds or $51 billion. this is what the prime minister had
to say after brokering the deal. this is a decisive step which enables us to move on and finalise a deal in the days ahead top these decisions were not taken lightly but i believe it is a decision that is firmly in the national interest. when you strip away the detail, the choice is clear. this deal which delivers on the boat of the referendum, which brings back control of our money, laws and borders and free movement —— ends free movement protects job and borders and free movement —— ends free movement protectsjob and our union, or leave with no deal or no brexit at all. chris southworth is secretary—general of the international chambers of commerce, which calls itself the largest world business organisation — representing 6.5 million companies in 136 countries. good morning. good morning. give us
your reaction? businesses will be cautiously optimistic. the most important thing for international companies is the relationship between the uk and europe needs to between the uk and europe needs to be as close as possible. 0ver between the uk and europe needs to be as close as possible. over the 21 month transition period is as close as we can get. not a lot of change particularly in border and customs. that transition period is set to happen and it will remain in place until the end of 2020 but what happens after that, the next phase of exiting the eu, what make about that? we know the big question is still unanswered. the fact that we can do free—trade deals but we also know that 20 countries have read it
rejected the uk applications to roll over its eu terms so that will not happen and we have had clear signals from markets like the us that they will not accept the uk trading on eu terms. a lot of negotiations are yet to happen. at the same time, parliament has to approve this draft withdrawal agreement and a lot of concern she will not get the approval of the majority in parliament and what that means for her, for the government and for this process. many business leaders saying we are still repairing for the worst case scenario. saying we are still repairing for the worst case scenariolj saying we are still repairing for the worst case scenario. i think thatis the worst case scenario. i think that is the sensible thing to do. from the trading point of view, it has been reasonably straightforward. a close relationship with the eu and an awful lot of global trade at the biggest issue has been the political uncertainty around it. how
optimistic are your members?m uncertainty around it. how optimistic are your members? it is unknown. we have clarity on the transition period which is good. it is not anywhere long enough, we think it should be 5— ten years. the rat complicated technical work that needs to be done. but politics is very unknown. thank you so much for coming in so early. we will have more on that later. let's go to the us now, where regulators are planning a crackdown on the sale of flavoured e—cigarettes, after a surge in their use by teenagers. market leaderjuul has seen sales rise by 750% this year. but it's been heavily criticised for marketing to young people, as samira hussain reports. e—cigarette have exploded in popularity and one company, juul, absolutely dominates the vaping market.
it is popular with teens, has its own social media following, and fans even make songs about it. # i said you grab it and you hit it and you do it again. it comes in flavours like mint and mango. and as the manager of this vape shop shows me, it is really easy to use. this pops open. you plug it in here. and you have yourselfjuul. why do you thinkjuul is so popular? the other brands, those do the same job, juul have done the marketing on it, it is really good. but in 2017 more than 3 million 11— 18 —year—olds said they use e—cigarettes, one third of which said flavours were a big factor. that has regulators wanting to restrict convenience stores from selling flavours that appeal to young people. but it will keep tobacco
and menthalflavours in stores. analysts question whether that move will have a big impact on the vaping market. i think it's oversimplifying this issue to think it's mainly flavours that are driving this. so by leaving tobacco, mint and menthal flavours on the market, i suspect that many current users whether you for adult will switch to those other flavours. because it knows are the flavours are coming, juul labs say won't sell most of its flavoured e—cigarettes in stores. and it will take down its social media account. this might impact the company's revenue in the short term but it is not likely to diminish its appeal to teenagers. now let's brief you on some other business stories... ride sharing firm uber lost more than $1 billion in the three months to the end of september. that was 27% less though than the record loss it made in the same period last year. it's spending heavily to expand into freight hauling,
food delivery and electric bikes and scooters — as growth in its taxi business slows. uber is planning a stock market flotation next year that could value it at some $76 billion. the price of bitcoin has fallen below $6000 to its lowest level in more than a year. the cyptocurrency has lost more than 70% of its value since its record high of almost $20,000 in december. kweku adoboli, the former ubs trader convicted of britain's biggest ever banking fraud, has been deported to ghana, despite a legal battle. mr adoboli served four years of a seven year sentence for covering up huge losses between 2008 and 2011. and now, what's trending in the business news this morning? wired has lots more us e—cigarette market leaderjuul and its alleged marketing to teens, as it says its shutting some of its social media accounts and removing some flavoured vapes
from convenience stores. bloomberg's opinion column says, brexit‘s 0nly sure bet is higher pound volatility. the uk has wasted almost three years tearing itself apart over the question of leaving the eu, and it's not over. cnbc discusses comments by the federal reserve chair powell credits fed policy for the us economy being in a good place. he also warns each fed meeting from now on will be live for a potential interest hike. that's it for the business briefing this hour. a bbc investigation has revealed that authorities made more
than 16,000 calls to schools in england and wales in the last year, to inform them about domestic abuse incidents. 0peration encompass allows police and councils to contact schools if a young person has witnessed abuse. emma glasbey has more. she is only 1a but she has being through trauma is hard to imagine. her mother was abused by a violent partner. she was murdered and beaten to death by the children slept upstairs. now she lives with her auntie in west yorkshire. she wants children who experience domestic abuse to be given as much help as possible, including at school. when you go through something like that, you go through something like that, you need the support and someone to talk to and help you. it would keep me up at night, meaning i was tied
the next day in school. there is a growing awareness of the damage done... this is a police training session about 0peration encompass. it isa session about 0peration encompass. it is a system which meant they would contact the school before 9am to tell them a child has been exposed to domestic abuse.“ to tell them a child has been exposed to domestic abuse. if there has been an incident the night before, and you are not going to sit and do your homework top they may need to have breakfast at school. they may just be need to have breakfast at school. they mayjust be anxious. 17 police forces in england have wales have revealed police were forced into england and wales more than 116,000 times. kirsty is now training to be an ambassador at her school so she can support other young people and understand what they are going through. for that story and more breakfast is at six o'clock with charlie stayt and steph mcgovern.
the headlines: after hours of impassioned debate — uk government ministers agree to support theresa may's brexit deal. doubts an operation to begin sending back thousands of displaced rohingya muslims to myanmar will go ahead as planned. officials in california say the town of paradise, ravaged by deadly wildfires, will have to be totally rebuilt. time now for a look at the papers, and let's begin with a look at how the latest brexit developments are being reported. we are looking at some of the press around europe. we begin in germany where the frankfurter allgemeine takes the view that the draft deal is a compromise that will bind the uk to the eu for the foreseeable future. perhaps the most difficult issue in the talks has been the future of the irish border but the irish times says the irish government is very happy with the deal —
saying it meets all its essential requirements. here in the uk, let's look at the guardian and like most of the british papers, the focus is on the difficulties that theresa may is likely to encounter in getting approval for the deal in a very split parliament moving away from brexit, but still with trade, bloomberg is reporting on possible movement towards a truce in the us—china trade war. if we move away from brexit. good news for financial markets, maybe. the new york times is looking at the irritant as far as president trump is concerned, his ongoing battle with parts of the media. it reports that a federaljudge
is due to deliver a ruling today on the white house banning a cnn reporter from the building. and finally, to switzerland and the neue zuricher zeitung, which covers the astonishing amount of money paid at an auction in geneva for a diamond and pearl pendant that once belonged to marie antoinette — $36 million. that follows the 50 million for that pink diamond. jane is back. jane foley, senior foreign exchange strategist at rabobank. let us look at frankfurter allgemeine. the british to the eu. that is germany's take on yesterday. it is, exactly. it refers