Skip to main content

tv   BBC Business Live  BBC News  April 15, 2019 8:30am-9:01am BST

8:30 am
you're watching bbc news at nine with me carrie gracie. the headlines... a plan to clampdown on unfair evictions — the government puts forward new rules for private landlords in england there could be a way this is business live from bbc news with sally bundock of forecasting, where deadly knife and ben thompson. attacks are likely to take place, decision day for one according to a new study. of india's biggest airlines. jet airways could be grounded teachers are warning that funding for good if it's banks for children and young adults don't give it more cash. live from london, with special educational needs in england has that's our top story reached a crisis point. on monday 15th april. and a master again. tiger woods completes one of the greatest sporting comebacks of all time. coming from from behind in the final round at augusta to win his 15th major. ijust couldn't be more happy and more excited. jet airways has already suspended international flights and had airplanes impounded but with india's aviation market growing massively we'll ask where it all went wrong, we'll be live in mumbai. also in the programme the world's first and third biggest economies get set to talk trade but willjapanese companies get more
8:31 am
access to the united states? the financial markets in europe trading forjust over 30 minutes, pretty flat, hardly any movement, we will explain why. and banking on a betterfuture — we meet the firm that's helping migrant workers access banking and financial services even if they don't have a permanent address or financial history. and as tiger woods makes his astonishing comeback to win the masters his first victory in more than a decade the sponsors who stuck by him in the bad times are now reaping the rewards. so we want to know is this the greatest comeback? we'll discuss a little later, join in, just use the hashtag, bbc biz live hello and welcome to business live. jam—packed, as per usual. let's get cracking.
8:32 am
thousands of jet airways passengers around the world are wondering how they'll be able to get to where they were going. the huge indian airline has already suspended internationalflights as it struggles to survive and its lenders are right now trying to decide if it has a future. pilots have held off from striking before the outcome is known — they're amongst the staff that haven't been paid for the months. the airline is saddled with more than $1billion in debt and is hoping for a last minute financial lifeline so it can avoid collapse. six months ago, jet airways had more than 120 aircraft and had been servicing hundreds of domestic and international routes. but it's grounded the vast majority of its fleet and cancelled all international flights because of unpaid fees to leasing firms. the airline was founded by businessman naresh goyal. he and his family had a 51% stake in jet airways. but he stood down as chairman last month due to the firm's financial crisis and there are reports
8:33 am
he is now considering a rescue bid of his own. 0ur correspondent sameer hasmi is at the airlines headquarters in mumbai. i know there were lots of protesters gathered earlier, staff, pilots who desperately want to know what the future is for the airline? that's right, sally. right now everyone has broken for lunch but there were about 200, 250 people assembled here including primarily pilots, engineers and staff members, who we re engineers and staff members, who were hoping that the lenders would agree to infuse some money in the airline to keep it alive. that's why they are hoping lenders were meeting right now in a different location, and they will decide to save the airline. all of them had turned up
8:34 am
in uniforms, most of them haven't been paid for the last four months, it's been a really difficult year for most of them. what is the outlook for the airline? as you say, those in the position to help are talking right now. so this meeting is very crucial because it will decide the future ofjet is very crucial because it will decide the future of jet airways. it's a do or die meeting. the lenders have invited bids from investors who wanted to invest in the airline. they are reviewing the bids and based on if they find the bids and based on if they find the bid is visible, they will take a decision whether to infuse funds, the lenders infuse funds, at least for the short term to keep the airline alive until a new investor comes aboard. remember jet airline alive until a new investor comes aboard. rememberjet airways is not just about comes aboard. rememberjet airways is notjust about $1 billion of debt, they haven't been able to pay aircraft leasing companies, more than 100 aircraft grounded, they haven't been able to pay staff for the last four months, they haven't been able to pay oil companies so that's why they've, whoever comes on board will have to shell out a lot of money and that's why they need a visible business plan and based on that they will make a call whether to invest money to keep the airline
8:35 am
alive. thank you. let's talk about some of those issues. sally gethin, editor of gethin‘s inflight news, is with me now. we heard, quite clearly, do or die meeting today, how confident are you the airline can continue? there is certainly a political will to keep it alive especially with elections in india and it's very important that huge, very popular airline keeps going from that point of view. but whether there is a sure report which is noted, the financial muscle to help it survive is another matter and of course, even if it gets past this stage, it could still stagger on. it is an ailing giant, really. and does it belong in this age of very aggressive, low—cost carriers? that's what i wanted to look at. it's operating in a market that is very difficult. all airlines right 110w very difficult. all airlines right now going through a period of consolidation, restructuring, having to find ways to cut what is the biggest hurdle for the airline, what
8:36 am
is the problem? a couple of things, this figurehead who is behind the airline, he recently stepped down, he has a controlling interest and he stepped down as chairperson but critics said he was too controlling and that it didn't help and it borrowed heavily for so long. it's operating model for service international as well as domestic, and you have low cost carriers coming in, no frills, no food on board for example, undercutting their furs. board for example, undercutting theirfurs. and instead of re—engineering their business model, it just kept borrowing re—engineering their business model, itjust kept borrowing against that and that's not sustainable. we know, as you touched on, it is a fiercely competitive market but a growing market and one that many airlines wa nt to market and one that many airlines want to be in. if they can sort out some of those problems there is clearly a market and we know that yet has a big stake injet
8:37 am
clearly a market and we know that yet has a big stake in jet airways. could they see that there could be more injection of cash from some of its partners to try and cash in on what is clearly a market? it has this position, brand, it has a lot of aircraft, if it can pay the least to have the aircraft that can have slots, they have to act quickly because his predatory manoeuvres by the other airlines to get those slots and you know encroach on their pilots and cabin crew but if they can't get the extra cash injection and they did have a new operating model, a fresh injection of management, perhaps, then yes, there could be a future but all those things are open to conjecture at this point in time. absolutely, tough times for them. sally, good to see you. thank you. let's take a look at some of the other stories making the news. the woes for boeing's 737 max jetliners continues,
8:38 am
after american airlines and southwest airlines both announced they were extending suspension of the aircraft until august. the plane has been involved in two recent fatal crashes. that's led to the entire global fleet of 737 max's being grounded as boeing works on a software upgrade to fix the problem. the european union is due to give the go ahead to restarting trade talks with the us later today. it comes despite washington's threat last week to impose tariffs on another $11bn of eu products over the blocs support for plane maker airbus. president trump renewed his attacks on the eu calling it "a brutal trading partner with the united states" and promising that will change. germany's telecoms regulator has signalled that huawei won't be excluded from the country's sg network plans, despite fierce pressure from the us to avoid using the chinese telecoms giant. the boss of one of germany's top tech regulators told the financial times that his agency wouldn't specifically exclude any particular company. the us is concerned that china's government using huawei to conduct spying, something the company fiercely denies.
8:39 am
continuing the theme of trade talks that we touched on. cars, agricultrual products and pharmecuticals are just some of the many things the us and japan are set to discuss later today. that's because trade talks between the world's first and third biggest economies are due to get underway in washington. president trump has previously complained ofan unfair relationship with japan. 0ur correspondent rupert wingfield—hayes is in tokyo — rupert, is japan sympathetic to the us position on all this? and it seems the line from the tron camp is always the same. the trump administration playing hardball on trade, doing it with the eu, china and with japan. the japan response to that, we had a trade deal, a trade negotiation going on with the
8:40 am
united states, cold the transpacific partnership, —— the trans pacific partnership. and in 2016 president trump came to power and he pulled out of the tpp. since then, the tpp has gone ahead with other countries around asia pacific, in addition japan has signed a very large scale free—trade agreement with the european union and because of that, america is now feeling that it is disadvantaged and so it wants the same concessions that other countries have got. well, japan says it can have concessions, but only if it can have concessions, but only if it gives concessions to japanese products going into the united states. it will be a difficult negotiation. not surprised to hear that. rupert, in tokyo, thank you. we will keep an eye on the talks. these are markets in asia, thoroughly mixed at the start of a brand—new week. steven miniature in,
8:41 am
the treasury secretary implying that talks between the us and china are going quite well, good economic news about china today, trade and debt boosted markets in asia. let's look at europe. as i explained area, pretty flat, a boring start to the week. but boring is good. let's now ta ke week. but boring is good. let's now take a look at the day ahead on wall street. some era is there. april 15th is tax day in the united states, when individual income taxes are due. this is the first time taxpayers will be filing under the new rules put in place by president donald trump back in december 2017. the filing deadline is midnight, so all those procrastinators out there have precious hours left to get their taxes down. also happening monday, earnings continue with two more of the big banks reporting — citigroup and goldman sachs. —— get their taxes done. goldman's earnings will be of particular interest as the bank has found
8:42 am
itself wrapped up in the 1mdb scandal, one of the biggest episodes of financial misconduct ever seen. joining us is simon derrick, chief market strategist at bank of new york mellon. nice to see you. we've heard quite a lot from the us president and he's been tweeting again. tweeting on a wide range of topics in fairness, no different from any other week. he's been talking about several things, talking about a trade but also the us central bank of the federal reserve and he's been criticising them once again for keeping monetary policy a little too tight, not getting interest rates down, not getting interest rates down, not getting more quantitative easing. and he said had they done that the stock market would be much higher. exactly. that's great, of course it would be much higher because of this easy money around of course things are going to go up. the question is whether it's been appropriate over the course of the last 12 months to have ultra—easy monetary policy, he
8:43 am
probably wants an easier currency. mario draghi, the head of the european central bank is fighting back, he said central banks are supposed to be independent making decisions not necessarily in favour of any particular government. and this is one of the biggest issues, over the course of the last 40 odd years central banks have finally got independence from politicians, they said interest rates for the good of the economy not for the good of the political cycle. synergy star compromising that, then people don't trust what the central bank is doing. to be fair, the s&p 500, the broadest market in the state closed 196 broadest market in the state closed 1% shy of an all—time high, didn't it? that's why it's curious for him to keep going on about this, the other element, we are in the middle of these discussions with china and japan, just about to start with europe, and one of the president was my constant complaints and previous
8:44 am
administrations, they keep their currency administrations, they keep their currency to strong so maybe what he's trying to do is bring downward pressure on the dollar so it could be an international thing as much as a domestic thing. the intrigue. for now, thank you. we will talk more a little bit later. simon, thank you. still to come we meet the firm that's helping migrant workers access banking and financial services even if they don't have a permanent address or financial history. (pres you're with business live from bbc news. tsb has become the first uk bank to pledge to refund customers who fall victim to any type of fraud. the "fraud refund guarantee" will cover cases where customers are tricked into authorising payments to fraudsters, as well as unauthorised transactions. neena bhati is head of campaigns at which? welcome to the programme. what do
8:45 am
you make of this move on the part of tsp? it sounds very generous on the one hand. absolutely, people have been losing life changing sums of money every day, thinking that they are authorising payments going to, say their builders, solicitors and even their banks, sometimes, thinking they are protecting their money when moving into a different account. but actually they are being tricked by fraudsters. this move by tsb is ground—breaking, they are saying, look, you are going through a really distressing time and instead of trying to make you battle for getting your money back, instead, we are going to help you as a victim of a crime, put your mind at rest that your money, you will get it back but also start supporting you, so you don't full victim again. and that is ground—breaking for tsb and we are really keen to see other banks step forward and offer the same to their customers. you would perhaps be surprised that more banks don't do this because it's would have
8:46 am
revolves around the issue of who is at fault. is that the customer, if they are transferring that money, you could clearly see the fault lies there for maybe not making the right checks but at the same time, unauthorised transactions could be a fault of the system or a security flaw? absolutely right, these are increasingly sophisticated scams and it's becoming harder and harder to spot and pretend the scams from happening in the first place but for too long, the responsibility and burden has been put on customers to protect themselves and we know banks are much better placed to spot these scams and it's really banks having to step up and see what more they can do to protect customers when they full victim. people will be questioning whether their banks will offer them the same as tsb customers. thank you. a story on the tablet, tsb also
8:47 am
underfire, during a story on the tablet, tsb also under fire, during the a story on the tablet, tsb also underfire, during the it failure last year it said it would raise its interest rate to attract you back to the bank that the firm says it is cutting that down to 3%. your're watching business live — our top story — its decision day for india's jet airways — the airline's lenders are deciding whether or not it should be allowed to continue trading — all international flights have already been suspended. a quick look at how the markets are faring. this is how europe has opened. some reprieve from all the brexit negotiations, many mps on a break, although we are told negotiations on the ruling conservative party and the ruling conservative party and the opposition labour party will continue today in an attempt to do a deal. use note that n, brexit. we
8:48 am
have not mentioned it yet, which is pretty astonishing. many people might move overseas looking for a newjob. others might do so, to start a new, better life. but with that, comes a lot of paperwork and admin including opening a new bank account. but if you don't have financial history, or even a permanent address, that can be tough. according to recent research, migrant workers make up around 18% of the uk working population. currently, there are just over 3.7 million eu citizens, who have decided to make the uk their home. 0ne company helping migrant workers adapt to a normal life in the uk is suits me. it was founded in 2016, and currently has just over 10,000 members. joining us now is keith poole, who's the managing director of suits me. welcome to the programme. your company isn't that old, established in 2015. there is already other
8:49 am
players in this market that are pretty established and had been for some time, why did you get involved? my business partner matthew we ran a payroll company and we noticed there was a lot of people being paid by check or actually from accounts so they didn't have secure access to funds. we looked at what was going on in the market, how difficult it was to open a uk bank account especially for migrant workers and we adapted a system in product to suit them. explain how it works. as we touched on most banks, big—name high street banks require you to show proof of address, income to get access to an account but you don't need any of that? we approach visa with a suggestion, a process how we could create these accounts for these people. so we predominantly use a referrer network of employers and recruitment agency sofa and they come to the uk partly onboarding process is a banking function, they are given an option. people pay you
8:50 am
for the privilege, most uk high street banks are free. so you don't pay a charge for as you do for yea rs. pay a charge for as you do for years. that's where you make your money. banking financial institutions pay a background service fee, we charge a monthly fee, just under £10, compare that to being paid by check, you can get 15% to close due to cash a check on the high street, that's about £180 a month, just under £10 is quite good value. sounds high-risk from your perspective, how do you cover for that and to what extent, you know, since she started have you found some of these people you should bank accou nts some of these people you should bank a ccou nts to some of these people you should bank accounts to cannot follow through? right. firstly on the risk side, we follow the basic principles operating across the world, we do additional checks and not as well. in terms of access to funds, i think the most important thing is people
8:51 am
have access to funds on a daily basis but again we have checks within that, how money is moved, where it comes from and goes to. the people coming to you, perhaps have very little experience of using a bank account, maybe they are used to being paid in cash, explain, part of yourjobis being paid in cash, explain, part of yourjob is education, isn't it, about how to use the bank account, the car, the chip and pin but partly how to be part of a financial system. we have in place a number of instructional things that show you how to use a bank account, how to work online, we have people in our business to support people in their native language, we reduce literature across many different european languages. are you enjoying it? i love it. we help do something about it and be introduced into the financial markets. keith, really nice to see you. he was saying to us earlier, many of the people stay
8:52 am
with the company three, four, five months and move on to somewhere else. it's an interesting business in the sense that customers only stay for a short period of time but keith, thank you. let's talk about china now. china is expected to overtake the us as the biggest aviaition market in the next few years. and with hundreds of millions of passengers flying through the country each year, beijing is set to open a brand new airport in the autumn —— stephen mcdonell went along to have a look. it's being touted as the world's largest single airport terminal, and daxing will eventually handle more than 100 million passengers every year using six runways. we are told this building covers a million square metres. and in the first of its kind, it will have two arrival and departures floors.
8:53 am
construction here will finish injune and it'll be open for business in september. when you take the massive capacity here, add it to the huge airport that beijing already has, and you can imaginejust what a transport hub the chinese capital is going to become. sorry, there you are. i've been on holiday and i forgot which camera we are on. we've been talking quite a lot about comebacks this morning, in relation to tiger woods winning the
8:54 am
masters. many sponsors deciding to stick with him. we'll get to your comments in a moment but simon, are you a golfing fan? i've known you for years. not a huge golfing fan but i was glued do you think this is the greatest comeback in sport? i don't know if that's true, it's one of the greatest, but muhammad ali in the early 705. it's one of the greatest, but muhammad ali in the early 70s. you know what, if you said exactly the same thing. mohammed ali, fantastic. i don't think, the tiger woods story is, not just i don't think, the tiger woods story is, notjust coming back from physical injury it's the whole emotional side of things and behaviour, and all of that. we know in elite sport at such a mental game, it's not just in elite sport at such a mental game, it's notjust about physical ability but you know, your conviction that you can do it and you can take on something like the masters and when. it is an incredible tale, you consider where he was 18 months ago, two years ago, all the issues he has had. to come back and do that i think is astonishing but i think it says a lot about the attitude of top—flight
8:55 am
sportspeople. again, when i mentioned james cracknell a second ago, he just kept going and going despite it all. and so, there he is in his mid—405, taking part in the oxford and cambridge boat race. it's unique. none of us could do it. another viewer watching in india, novakjaco another viewer watching in india, novak jaco beach another viewer watching in india, novakjaco beach and tennis slipped from number and gained his form, i wondered and i know you are into the tennis, whether this is inspiring andy murray. to make a comeback? absolutely. after all his operations. wimbledon again? the sponsors like 90, this is great for them, they have stuck with him, they will reap the rewards and they put out a big advert last night. he lost a huge numberof out a big advert last night. he lost a huge number of sponsors over the course of time, people pulled the sponsorship. but nikkei, they stuck with him and it did then good. they played the long game. you were dying to say that. simon, thank you, nice
8:56 am
to say that. simon, thank you, nice to see you. have a good day. hello. high pressure doing a really good job of holding the weather steady across the uk throughout the last week, even longer. and still, the high pressure will play a part in bringing warm weather as we make our way towards easter weekend. we have an area of low pressure dry to sidle into the picture today, pushing in from the atlantic, it squeezes up against the high pressure a cross squeezes up against the high pressure across scandinavia kicking up pressure across scandinavia kicking up the wind in the west at the uk. a breezy day further east as well. it's about the wind direction at the moment, fairly easterly and chili bringing an article about by the end of this week switching more to the south—east, still around this area of high pressure, pulling air in
8:57 am
from far south in the mediterranean, bringing much warmer weather by easter. cloudy out west, rain at times for northern ireland, eventually for pembrokeshire and cornwall as well. in the east, still a lot of cloud for north sea coast, high temperatures of six or seven, showers for the north—east of scotla nd showers for the north—east of scotland this afternoon but in sunshine, and they will be a lot of sunshine, and they will be a lot of sunshine around, high temperatures of 13 or 14. through the evening and overnight at the clouds thickening across all parts of the uk, some heavy rain for northern ireland, wales and the south—west of england, consequently it will be much milder on tuesday, overnight lows of five, six, 7 degrees. tuesday is a great day across the board, some rain for northern ireland transferring into western scotland and the north west of england later, for wales, and across southern counties of england. temperatures creeping up in some spots, london could reach 15
8:58 am
degrees. 0n spots, london could reach 15 degrees. on wednesday we lose cloud and sunshine can get to work and we start to change the wind direction, just the chance of the odd shower in the east on wednesday, for most a fine story and by then we look at temperatures as high as 15 degrees in edinburgh, perhaps as high as 18 in london and as we carry on towards the easter weekend, we see fine weather to come, cloud coming and going but the warm air definitely looking like it will make its way north across the uk, temperatures in the high teens for scotland, low 20s in the south.
8:59 am
9:00 am


info Stream Only

Uploaded by TV Archive on