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

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this is business live from bbc news with maryam moshiri and victoria fritz. global trade faces it's the worst crisis in 70 years, the head of the world trade organisation tells the bbc live from london, that's our top story on friday the 30th of november. roberto azevedo‘s warning comes as 620 leaders meet in argentina with the us china trade war right at the top of the agenda. also in the programme — leading british tech boss mike lynch is charged with fraud in the united states over the sale of his $10 billion company to hewlett—packa rd. european markets are open and we have more on why they are in negative territory. the us mexico and canada are set
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to sign their upgraded trade deal at the 620 but will there be a last minute hitch? we'll talk you through that as well as oil and brexit as we look back at the week with our economics correspondent andew walker. also today — as starbucks annoucnes it's the viewing of porn on its wifi, we want to know whether you think private companies shdl police our private use of the internet in public? let us know — just use the hashtag bbcbizlive. keep it clean! keep it clean, coming from victoria! very funny! hello and welcome to business live. we start in the argentine capital buenos aires — where world leaders gathering for the 620 summit and the head of the world trade organisation has told the bbc that the global free trade sytem is facing its "worst crisis" since in 70 years. roberto azevedo said the current wave of protectionism is threatening free trade and that finger—pointing and threats have to stop. the 620 leaders meeting
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in argentina represent developed and developing countries that account for 85% of the world economy — and two thirds of the world's population. many of them are seeing slowing economic growth. two of the world's five biggest economies — japan and germany — actually saw their economies shrink in the third quarter of this year. last month, the international monetary fund cut it's global growth forecast for next year — and it says the picture has worsened since then — one of the big worries is the trade war between the us and china. this year, the world's two biggest economies have slapped import tariffs on $363 billion worth of goods that they sell each other. that's led to something of a breakdown in the international trading relations as our correspondent daniel 6allas heard from the head of the world trade organisation. i would say it is the worst crisis, not for the wto but for the whole multilateral trading system since 1910.
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this is the moment when some very basic principles of the organisation — principles of cooperation, principles of non—discrimination — are being challenged and put into question. that is very serious. what i think is that we cannot ignore those concerns. you have to talk about them and you have to see whether there are ways of addressing those concerns that are acceptable to all wto members. the 627 is happening before a bilateral meeting between donald trump and xi jinping. everyone is waiting for a deal between china and the united states. so can we expect anything relevant to come out of the 620 meeting before the two leaders meet? the most important thing right now is to ensure the kind of conversation exists between the two sides shifts in terms of mode of engagement.
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it has to shift from a mode of threats and accusations, finger—pointing, to one of finding solutions. i think both sides understand what their concerns are. we already know what is bothering the two sides. what we need to figure out now is how do we find solutions and how do we find a way forward in light of the concerns that both sides have? what we need to figure out now is how do we find solutions and how do we find a way forward in light of the concerns that both sides have? with us is janet, mui, 6lobal economist at cazenove capital. roberto azevedo speaking to the bbc exclusively. with us is janet mui, 6lobal economist at cazenove capital. thanks forjoining us. the 620 summit is in its tenth year and is a forum that was intended to secure
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global governance when they started doing this. it has become a stage for leaders to grandstand, effectively. do you think they will find anything to agree on this time around? a major breakthrough is quite unlikely at this stage but i think the 620 summit is a platform forum for the global leaders to gather together and discuss important issues. one of the issues that has recently arisen is that days ago, with general motors in the us, they decided to cut 1a,000 workers in the us and closed down three factories. if that's the case, donald trump is considering to put an import tariff on cars notjust on china but the rest of the world. if it happens there are significant imprecations on global trade and an impact on car exporters like 6ermany, impact on car exporters like germany, japan. in a 620 meeting
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it's a chance for global leaders to think carefully on this policy. but will he listen? this is the big issue, we saw in previous summits, we haven't seen the joint communique is we normally see, these warm words that they walked words. —— walked towards. we have seen donald trump pulling away from other leaders and eve ryo ne pulling away from other leaders and everyone else catching up. that's true, he is unpredictable but i think now, he is going to focus on the china and us trade tariff escalation for now. i think on that, it's difficult to get a breakthrough. the us is still focusing on attacking its perception on chinese technological 0pti thefts. also, trying to get support
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for technological giants. versus the rest of the world, previously, he was about to impact these tariffs on the rest of the world but there was de—escalation with the rest of the world and so, his main target is china for now and so far he is only threatening the odd tariff. there could be imposing tariffs on the rest of the world which would mean the rest of the world imposes these ta riffs the rest of the world imposes these tariffs in retaliation on the us as well which would hurt the us in the manufacturing sector. there is no win—win. especially now that trump has been weakened after the midterms. he is not negotiating in a strong position this time. janet, thank you for coming in. breaking news now... the former chief executive of the tech company autonomy has been charged with fraud in the united states. mike lynch sold the company
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to hewlett—packard for more than $10 billion in 2011, and it's that deal that has led to these charges. he's denied the charges through his lawyers. our technology correspondent rory cellan—jones joins us — what do we know at this stage? well, yes, it all dates back to an extraordinary deal in 2011where hewlett—packa rd, extraordinary deal in 2011where hewlett—packard, now extraordinary deal in 2011where hewlett—packa rd, now known extraordinary deal in 2011where hewlett—packard, now known as hp, paid an extraordinary price for autonomy, $10 billion within a year 01’ so autonomy, $10 billion within a year or so it had written most of that price, and immediately accused autonomy of fraud and misleading what it had in its accounts. the us department ofjustice has come in behind that case. it brought a serious case forward, accusing mike lynch and his company of completely
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misrepresenting its revenues and using all sorts of techniques and dodges to inflate the financial value of the company, to give a com pletely value of the company, to give a completely misleading picture. it must be said, he has come out with a strong statement, lawyers have said the indictment is a travesty of justice and targeting a british citizen with rehashed allegations and no place in the us court. it's a business dispute over the application of uk standards which is subject to a civil case, making it clear he will fight these serious allegations and it has to be reminded that the chief financial 0fficer reminded that the chief financial officer of autonomy has already been convicted in a similar case. rory, thank you. let's take a look at some of the other stories making the news. starbucks has announced it will block access to pornography on its free wifi in all its us outlets from next year. while watching explicit content in store was always banned, the coffee giant will now actively block such content. the firm has been under pressure from a virginia—based nonprofit, enough is enough, to filter pornography in its stores. japanese telecoms firm softbank
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is set to be valued atjust over $21 billion when it makes its stock market debut next month. it will be the world's biggest share listing in four ears. softbank‘s parent company is planning to use the money to pay down debts and fuel its softbank vision fund which is investing in technology companies around the world. the music has gone! do you want to start? 6o start? go ahead! we were talking about what is going on with the 620 and what's going on with global growth. 0ne is going on with the 620 and what's going on with global growth. one of the indicators is worrying this morning. we are talking about the manufacturing sector in china. growth in china's manufacturing sector has stalled for the first time in over two years. the purchasing managers index,
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which measures manufacturing activity, fell 0.4% from november. china is the world's largest manufacturing economy so what does this slowdown tell us? monica miller is in our asia business hub in singapore... we can ask her! this adds some pressure on president xi right now? this is not the news that they wa nted this is not the news that they wanted to hear going into this, we had this meeting between president donald trump and president xi jinping. after the news came out, factory orders had fizzled in november, it is the latest sign that the world second largest economy is slowing down. the official purchasing managers index fell to 50 points, which means we are in neutral territory. it does not go one way 01’ neutral territory. it does not go one way or the other which is alarming many people. there are new orders on the domestic end of overseas markets, the trade dispute we have been talking a lot about
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today between the us and china is beginning to impact the economy. monica, thank you. a look at the asian markets which closed pretty flat dot a wait and see approach on the stocks ahead of that meeting between president xi and president trump later at the 620. similarfor the european shares right now. a bit down but they are treading water ahead of what is happening in argentina. michelle fleury has what's happening on wall street later. moving to the end of the trading week and investors will be keeping an eye on the trade situation between the us and china. they are hoping that when the leaders of the world's two largest economies sit down for dinner this weekend, some sort of deal can be reached. broadly speaking markets have mostly shrugged off escalating tensions between these two economic giants. you hear again and again from market watchers that this is likely to be one of the key risks to the global economy in 2019. traders are also keeping an eye on oil prices which rose on thursday after russia indicated it was open to cutting production together with 0pec which meets next week.
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as for the earnings calendar, it is relatively light this friday. 0n the economic front, watch out for a regional report on manufacturing when the chicago purchasing managers index is released. michelle fleury there. joining us is richard dunbar is investment director at aberdeen standard investments. 6ood good morning. it has been quite the week on currency trading. explain why? there is a lot going on, sterling seems to be navigating the chaos at westminster well, better than many may have expected. the 620 summit will have, i suspect, implications for many currencies. the dollar has had a tailwind over the last 12 months in terms of turbulent markets and interest rates going up. the tailwind seems to be turning slightly. and that dollar,
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it all kicked off when we had the head of the us federal reserve giving his speech. what we talked about was what a lot of investors wa nted about was what a lot of investors wanted to hear, a cooling down in the rate at which, interest rates we re the rate at which, interest rates were hinting at it, erased in the us. there's a knock on across the world, with riskier assets? this was the us economy with a huge stimulus in the tax cuts which appears to be dying down slightly. the federal reserve put up interest rates and tapped the brakes. now they say may be they don't need to tap it so strongly. hence the expectation that interest rates are lower than they we re interest rates are lower than they were and there's huge implications on these important factors for most investors, in any currency or country. what else will bc in terms of the forex market? it has been, up to now, that the pound has been a barometer of brexit and we come to
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the end of a busy week. we have two more weeks of uncertainty. where will we see these markets in the next couple of weeks? some would think sterling is a bit cheap and... still? indeed. the expectation is oui’ still? indeed. the expectation is our politicians will model through but that's not what it looks like when you look at the tv screen daily from westminster but that's what the currency strategists are expecting, and if it turns out not to be the case, sterling will be vulnerable. to bea case, sterling will be vulnerable. to be a currency strategist these days! no thanks! i know you will ta ke days! no thanks! i know you will take us back through the papers, see you soon. still to come can the us mexico and canada finally sign off on their trade deal? 0ur economics guru, andrew walker, will talk us through and the rest of the week that was. you're with business live from bbc news. volkswagen and tesco have announced they will install around
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2500 charging bays for electric cars at tesco stores around the uk. customers will be able to charge their electric and plug—in hybrid cars for free or use the faster 50 kilowatt chargerfor a price. joining us is volkswagen uk's head of marketing, will these charge points only be compatible with vws? 0r or will you be able to use whatever electric car you drive? absolutely not. they will be compatible with the majority of electric cars on the market today. it shows our commitment to drive forward electric vehicles in the future. if i shop at sainsbury‘s can i use your electric car charging point at tesco? we are looking at tesco customers to use these charges so, yes, they can come
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into tesco's and do their shopping and doa into tesco's and do their shopping and do a top up of 25 miles which is really good or use the pay charges to get more charge on their cars. so, you don't have to be a tesco customerfor so, you don't have to be a tesco customer for those? the preference is to use the tesco facilities and tesco supermarkets. we are combining and joining forces with tesco's and pot points to get the charges out in the supermarkets. how did you choose where the charging bays were installed? have you done some research? tesco will look at the major stores, the larger formats, superstores and tesco extra stores. but it will be rolled out across the whole of the country making it really accessible for lots of people which is a really positive step forward for electric vehicles. so good to talk to you. thank you. plenty more on that on the tablet.
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some news if you are on a train. millions of commuters will have to pay an average of over 3% more for rail tickets from the 2nd of january. this is according to the rail delivery group called the chief executive of that group says nobody wa nts to executive of that group says nobody wants to pay more for travel, especially those who have experienced significant disruption earlier this year. plenty more on the bbc news site. just look up business live. your‘re watching business live. our top story... 6lobal free 6lobalfree trade is 6lobal free trade is facing its worst crisis in 70 years. it comes as leaders of the 620 economies are all meeting in argentina, buenos
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aires, what an accent! she is better than me. trade wars, us and china is very much top of the agenda. sticking with europe... a quick look at how the markets are faring. europe is treading water ahead of that meeting between president cheapening and donald trump and they are in negative territory now. president xi. that 620 summit in argentina means the global economy is very much in the spotlight, and there are plenty of other big economic stories around this week. there's been a string of reports about what brexit will mean for the british economy and the price of oil has continued to fall. 0ur economics correspondent, andrew walker, is here. andrew, as always, it is just getting busier and busier for you. how is life these days? do you ever
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get breast? if it is not brexit, it is oil and if it is not oil, it is trade. —— do you ever get any rest? there is a plan for the new trade deal the united states, mexico and canada have negotiated. nafta was a lot easier. there was a plan for that to be signed by the three leaders in the margins of the summit. due to happen in a little over three hours' time. we do not know whether they will nail it down because there are some continuing negotiations going on about trying to pin down the final text? it is this recurrent problem we have had in the negotiations about us access to canadian dairy sector. the americans have particular concerns. it isa americans have particular concerns. it is a hideously conjugated system they have in canada but the americans want some more wording to
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make it easier for them to understand exactly what policy changes the canadians might be making. let's talk about oil prices. they have been a bit topsy—turvy and not what you would want to read if you're a big oil—producing nation. that is another issue that will loom in the buenos aires summit. we have president trump there, who has been in courage in producing countries not to try and push prices higher and of course the saudi crown prince should is also there. —— is also there. brent crude, one of the main indices, has been below $60 having been as high as 86 at the beginning of october. so there will be... there will be some issues, some
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pressure. bearing in mind it is also compensated by the diplomatic aspect, which is that saudi arabia, because of what happened tojim marcus 6, the murdered saudi journalist, the saudi crown prince of saudi arabia wants to maintain as good as possible diplomatic relations. —— khashoggi. good as possible diplomatic relations. -- khashoggi. we arejust getting some breaking news in in the last few moments about carlos 6hosn the former chairman of nissan. tokyo authorities have extended or another ten days the detention of carlos 6hosn. he is being held after these allegations against him of financial misconduct. they now have until
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december the 10th to file charges or let him go for that this is just an incredible story, isn't it? it is. it raises big questions about the shape of the motor industry. the underlying context has been a big international alliance between nissan, renault and mitsubishi. it is seen very much as embodied personally by carlos 6hosn. 0ne thing behind these moves against mr 6hosn has been concerns in this and that it was all getting a little bit too integrated and they were in some danger of losing their own identity. so, more... the fact that this detention will last that bit longer does undoubtedly intensify those questions about what is the future for this global alliance which, by some measures, was the biggest car
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producer on the planet. if anything you don't know? as andrew was talking about oil, we passed a note saying the can you do 6hosn? he gave usa saying the can you do 6hosn? he gave us a nod and away he went. thank you so much. he is amazing. 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. stay up to date with all the day's business news as it happens on the bbc‘s business live page. there's insight and analysis from our team of editors around the globe. and we want to hear from you. get involved on the bbc‘s business live web page at on twitter, we are at bbc business. and you can find us on facebook at bbc money. business live on tv and online. what you need to know when you need to know. let's talk about what is going on in
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the papers. earlier, we brought you the story that starbucks is to to block porn on free wifi in the us, we want to know whether you think private companies should police your internet usage in public? simon says this is a non—question. they are not policing your wifi use in public. they are policing it on their private premises through their private router. a teacher got in touch and says not only should they ban people watching porn on starbucks wifi, they should ban people watching it using their personal data, while sitting in starbucks. what do you think? i think most people go into starbucks for a cup of coffee and a bun. surprising it is there. i suspect most people have the same reaction to that tweet. why would you be doing that? should private companies have any say over what you do? is it a public space or a private space? i think it is a public space. those sitting around
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you have rights as well. that is it. after the stormy weather yesterday todayis after the stormy weather yesterday today is looking much quieter weather—wise across the uk. we have some showers which will feed in across northern parts. they will be blustery with a bit of snow on the higher ground. for many of us there will be sunny spells. most showers will be sunny spells. most showers will be sunny spells. most showers will be associated with an area of low pressure, many across the north. the isobars are closer together across northern areas compare with the south. that means we have fairly gusty winds gusting up to 60 miles an hour. the showers will feed and if you are out and about at lunchtime. as we coming to england and wales, for many of the dry with sunny spells. the odd shower here
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and there which could drift its way further east. for most it is going to be dry in the afternoon. the winds will be lighter in england and wales compared with yesterday. into the afternoon temperatures will get up the afternoon temperatures will get up about eight to 1a celsius. still a bit of snow over the higher ground this afternoon pulled this evening the showers will continue across scotland. the odd shower over england and wales. more persistent rain will spread into the south west of england, keeping temperatures up at six, seven celsius. further north across scotland and northern ireland is perhaps a bit chilly air. the winds will ease. into saturday it sta rts winds will ease. into saturday it starts off fairly well but the rain will move its way north and east. the showers will break up in the north of england for them into saturday afternoon it will be dry with late afternoon brightness and some sunshine. up to 1a in the
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south. into sunday we have another weather system which will push its way in. fairly similar to saturday in that it could be a wet start to the day. still some showers in the north. drierfor the day. still some showers in the north. drier for many as we go into the afternoon before by the rain spreads into northern ireland and the west of scotland eventually by the west of scotland eventually by the evening into north west of england and into wales. into next week the weather system will move away. in it as we push away the oranges and pick up these blues. a northerly winds will start to establish itself across the uk on monday and it will feel a bit chilly into next week. the by. —— goodbye. you're watching bbc news at 9 with me, annita mcveigh — the headlines: tackling type 2 diabetes — the nhs is to offer thousands a low—calorie, liquid diet in a bid to reverse the condition.
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i have lost so much weight! ifeel better, i feel... happier. rail fares increase for millions of commuters, by an average of three 3.1% from january. theresa may arrives in argentina for the 620 summit — as she warns mps to think about their constituents — ahead of a crucial vote on her brexit deal. ukraine's president bans russian men from entering the country as tensions between the two sides esclates. has an agreement been made to stop the blackout on sark? we'll be live on the channel island to find out. leave it for the ring — after ugly scenes at
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