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

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on sunday with some light winds and those temperatures starting to creep up into the mid to perhaps even high teens. bye bye. this is business live from bbc news with victoria fritz and sally bundock. is a trade deal between the world's two biggest economies still possible after the latest intervention from president trump? live from london, that's our top story on thursday 9th may. even before chinese trade negotiators touch down in washington, the us president says "china broke the deal" and "will be paying". so, what's at stake? we will talk you through all you need to know. also in the programme:
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its drivers are on strike, it's admitted it may never make a profit. yet uber is expected to value itself at around $90 billion when it prices shares today ahead of its stock market listing tomorrow. the only way is down for europe with paris seeing the biggest falls. and it's hailed by the clean—eating generation as the hot tonic for 2019. not blueberries or goji berries, but apple cider vinegar or "the mother"! we'll talk to the entrepreneur hoping to take a bite out of this growing market. today, we want to know, after another incredible comeback — are english teams set to dominate european football again because they pay the best players? tell us what you think. let us know — just use the hashtag bbcbizlive. hello and welcome to business live. send us your comments about the
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football or anything else, we always love to hear from you. donald trump's big gamble. will it work this time? the us president has further ratcheted up tensions with china on trade, even before chinese negotiators, led by vice—premier liu he, have touched down in washington to resume talks with the us. he says china "broke the deal", hours before the two sides sit down for talks, aimed at ending their year—long trade dispute. it all began last summer with the us accusing china of unfair trade practices — and slapping 25% import taxes, ortariffs, on chinese high—tech imports worth $50 billion a year. in september, it raised the stakes by hitting another $200 billion worth of chinese goods with tariffs of 10%, with the threat to raise them to 25% if no concessions were made.
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beijing responded with tariffs on $110 billion of us goods, specifically targeting agricultural products from trump—supporting states. last weekend, president trump accused beijing of back—tracking on issues already agreed. he said taxes on $200 billion of chinese goods, from chemicals to textiles to consumer products, would now rise from 10% to 25% on friday. and he threatened to tax the rest of chinese imports — worth another $325 billion a yearat the same rate. a year at the same rate. at a rally in florida late on thursday, he struck a combative tone. so, they're flying in. the vice premier is flying in, tomorrow, good man. but they broke the deal! they can't do that. so, they'll be paying. we don't make the deal. nothing wrong with taking in over $100 billion a year. 100 billion. we never did that before and we have that happening, a lot a good things happening with a lot of countries.
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so ijust announced we'll increase tariffs in china. we won't back down until china stops cheating our workers and stealing ourjobs and that's what's going to happen. robin brant is in shanghai for us. and on the eve of these pivotal talks, china vows to retaliate. that's what's appearing to happen. we know there will be retaliatory tariffs. if the tariffs you heard donald trump talking about to go ahead. they are likely to be proportionate. perhaps from the chinese point of view it won't be an escalation as far as they are concerned. we will get this meeting up concerned. we will get this meeting up liu he and his team and america's trade representative robert lighthouse and it looks unlikely that deal will be done. there was basically 150 pages of a trade deal agreed in all but name, 90% and suddenly the chinese made numerous
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edits, numerous changes. we are hearing from china public ministry of commerce in the last half an hour reiterating this point about being fully prepared and it has been sincere and acted in good faith. there will be retaliation but we just heard the spokesman being asked about the reuters story and the platter of changes that apparently china made to the deal. you heard donald trump say china broke the deal but the minister of commerce spokesman said chinese people stick to our word, that has never changed. in terms of the official line from the ministry of commerce in china, it is somewhat different to the version of events we are hearing from america. the meeting will be later today and we will hear what happens tomorrow. it is looking like the us will increase tariffs at its end and we will get some retaliation from china and we will have to see what happens next. it will look and feel like an escalation. it looks and feels like the deal that was almost done is unlikely to be done, 110w. almost done is unlikely to be done, now. thank you.
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with us now is sharmila whelan, deputy chief economist at aletheia capital. you have over 20 years of experience of analysing asian economies and policymakers. do you agree with our correspondent, robin, the deal is off the table and tariffs will rise on friday? i'm a bit more optimistic than robin! i am cautiously optimistic that the tariffs will not rise on friday. i believe a deal will be struck. maybe not this week but in the next couple of months a deal will be struck. it is in the interest of both countries and the economy. give us your take on what the us is really, you know, annoyed about. because, last week the mood music was that we are near to a deal and we're just agreeing on the issues, it's already there, really. suddenly, late friday, he says ta riffs suddenly, late friday, he says tariffs will go up in a week's time because china are not playing by the
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rules anymore. sally, two bones of contention with us is that they want to codify the protection of intellectual property rights in chinese law. in the second is the prevention of transfer of technology. those are the two sticking points with the us. but if you look at the larger picture, the things the us wants is open markets with the chinese, particularly financial, which the chinese have already been doing. they've just announced 12 more measures to deregulate financial markets for foreign investors. number two, deregulate financial markets for foreign investors. numbertwo, s only subsidies, which the chinese aren't going to give way because they see it as intervention in the domestic economy two soe subsidies. the internet, that is a difficult one for the chinese. the fourth is intellectual property rights, which they have given way. right now, there is a lot of sabre rattling, a lot of rhetoric but both parties
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have softened their stance, given where they started. at multiple points, when the chinese government could have retaliated against america, by targeting businesses, they've actually tried to win over these culprits and they've given them better access to the markets. perhaps the situation isn't as bad as some of the rhetoric would suggest tess win over these corporates to win over these culprits. you would expect a lot of posturing if you are a good negotiator on both sides. you are right. 0ver if you are a good negotiator on both sides. you are right. over the last 12 months, in terms of opening up the financial sector and the insurance sector, giving greater access, the pri forum, the second forum in april, where china introduced a debt sustainability framework, assessing these projects to assuage concerns by member countries. at the opening forum
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talk, xi president spent half his speech positioning the chinese concessions on the trade deal in the interest of china's development, rather than giving way to us pressure, which suggests they are ready. they were already getting their domestic base into gear, to accept it. we will have to leave it there. i am sure we will find out there. i am sure we will find out the answer tomorrow. thank you. you are very welcome. let's take a look at some of the other stories making the news takeda pharmaceutical will sell its dry eye drug to swiss drugmaker novartis for $3.1; billion, in its first major deal since its acquisition of britain's shire. japan's biggest drugmaker is pushing to divest billions of dollars worth of assets to cut debt taken on for the huge shire acquisition sealed in january. shares of walt disney rose in after—hours trade after the media giant reported better than expected results for the first three months of the year. disney's investing heavily
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in its streaming service disney+ which is due to launch in november to take on netflix. at the end of march, it finalised a $71 billion deal to buy the film and tv assets of 21st century fox. lawyers for top huawei executive meng wa nzhou want her extradition to the us blocked, saying the case against her is flawed and politically motivated. ms meng, who is chief financial officer of the chinese telecoms giant and daughter of its founder, was arrested in canada in december at the request of the us, accused of fraud relating to violation of sanctions on iran. 0ne story in town dominating financial markets, trade talks taking place in washington. lots of wea kness taking place in washington. lots of weakness in asia, shanghai down heavily and hong kong down heavily as well. that is the focus of age and lets look at europe. lots of
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stories coming from companies today thatis stories coming from companies today that is moving markets in europe, a big loser in london is super dry which has issued a profits warning, 496 which has issued a profits warning, 4% down from a fashion chain popular on the uk high street. morrison is out with a quarterly trading update that disappointed. lots of corporate stories. look at the bbc business live page for all the detail on those and we will talk more about markets in a moment. a really big day for uber today and tomorrow. later today, the taxi app company uber is expected to value itself at around $90 billion when it prices shares ahead of its stock market listing on friday. it comes a day after drivers around the world went on strike over pay and conditions. dave lee was outside uber‘s headquarters in san francisco. around 100 or so uber drivers came to protest outside the company boss mike had headquarters in san francisco. they demanded a living wage for a firm soon to be worth $90
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billion. drivers say that money came from their hard work. the matter doesn't make sense, this silicon valley nonsense maths —— the maths. it doesn't ring true. it says something that is going on isn't right. if you are worth 90 billion, why can't you pay your employees or your partner is? it's not livable, your partner is? it's not livable, you can't live on what we are being paid or the time we are putting in, which is dangerous to stop its too many hours to be out on the road. nobody from uber came out to address the protesters but in a statement, the protesters but in a statement, the company said it valued its drivers and were always looking at ways to improve their conditions. but the reality, of course, is that uber isa but the reality, of course, is that uber is a company making deep losses and will soon have shareholders who will want that situation to change. dave lee, bbc news, in san francisco. joining us is sue noffke, uk equities fund manager at schroders.
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if you are interested in uk equities, you are not necessarily interested at the ipo going on at uber or argue, is it too exciting to ta ke uber or argue, is it too exciting to take up? i don't invest much of my clients' money in us equities, us equities is always interesting for setting the pace and valuations and setting the pace and valuations and setting the pace and valuations and setting the scene for what is investa ble setting the scene for what is investable elsewhere. this year, 2019, is definitely the year of the ipos. uber is just the latest one of a raft and there are still more to come. the interesting thing is not necessarily how it's going to be valued, but how little new money is actually being raised. many of these businesses have already had private funding rounds and have come to the market quite a long time after establishing themselves. they‘ re market quite a long time after establishing themselves. they're not actually raising very much new money. but it is putting a valuation on the business, which will trade. which will be lower than many predicted. when they first put it out there that they were going to
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list on the financial markets, the evaluations were something like $120 billion but now $80 billion. maybe 90 at the top end. huge sums, still. that is because of the other ride ride hailing companies where the ipo from the end of march haven't gone so well. their shares are down 27% and they just stretched so well. their shares are down 27% and theyjust stretched the valuation too much. they had results yesterday, which were 0k. valuation too much. they had results yesterday, which were ok. but not good enough to move the share price. i think uber have probably recognised some failings around their ipo, especially in the pricing and they have reined back perhaps the top end, for expectations' sake. thank you. initial public offering, ipo, just in case. it trips off our tongue but we don't want to assume anything. still to come: just what is "the mother",
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found in apple cider vinegar, and what can it do for your health? we'll be getting the inside track on willy's apple cider vinegar with its founder, serial entrepreneur william chase. you're with business live from bbc news. i think most of us have too much stuff at home and many of us can't bear to get rid of it. iama i am a hoarder. i thought you might be. are you a hoarder? no! iam i am a hoarder. i thought you might be. are you a hoarder? no! i am zen. just like my dad, get in a skip! i know you are watching, dad, hello! there's been a boom in the kind of businesses that can help you store your stuff away from home, with self—storage space doubling over the past decade. ben thompson joins us now from a self storage facility in stockport. are you a hoarder or are you good? 0n the whole, i'm quite good, sally. i know your drawers at home are full of tech gadgets that you hate and
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you just love them in the draw and unplug them. welcome to stockport. of all things to be talking about, self storage is booming in this country to stop astonishing figures released today suggesting half of all the storage space in europe is here in the uk. and there are so many reasons. they talk about it being death, divorce and moving house, those in the main reasons people put things in these units. rene is with me from the self storage association. this unit is steve's for his business and increasing amount of businesses, not just for storing old furniture. we have about 30% of our customers, business customers and people like steve who has moved out of his garage and getting some more space through the big businesses that use it for holding goods for reps and drop off merchandise. its flexible space, isn't it, that's the benefit? that's the thing, you can use it for a week, a month, a yearand if you need a bigger unit or downsize we accommodate that and you are only paying for the space you use, as
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opposed to a warehouse which might be half empty or full. let's introduce you to the man who has crunched all the numbers. astonishing business. they suggest a third of us keep hold of all that stuff for about three years. 0liver, good morning. big business isn't it? we had about a business using it but is it because our houses are too small and we don't want to get rid of stuff? a combination of factors. 0ne of stuff? a combination of factors. one third of customers tend to be businesses, one third of customers tend to be private individuals who have a short—term need, moving house, something like that, and the other third is long—term, lifestyle, where they keep all their stuff and they don't have enough room at home. fascinating, thanks for your advice. that's the suggestion. some of the businesses that use it here, not just about hoarding all that old stuff we just can't get rid of. more later. this is business live. 0ur
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this is business live. our top story, president trump has further ratcheted up tensions with china when it comes to trade before negotiators from both sides get together again in washington today together again in washington today to try and come to some sort of resolution. president trump said china has broken the deal hours before the two sides sit down for talks. this is aimed at ending their year—long dispute over trade. now would you splash the cash on a simple kitchen staple — if it made all kinds of promises to boost your heart, brain and lower cholesterol levels? that's just three on a long list. globally, the market for apple cider vinegar is worth almost $750 million a year. it contains a substance called the "mother", which refers to a combination of yeast and bacteria. it's claimed apple cider vinegar is helpful for all kinds of things — from cleansing you lymphatic system to clearing up your
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sinuses. willy's apple cider vinegar is one firm aiming to take advantage of the growing market — targeting health conscious consumers. with us now is william chase, founder of upmarket crisps brand tyrrells and potato—based vodka, chase vodka. thank you for coming in. we have had quinoa, blueberries, goji berries, avocados, is this a fad? no, in every roman kitchen this was one of the top household must haves, it's been around for ever. why haven't we known about this for ever and some of the health benefits? it has been there. lots of people set my auntie, has been on it and i've heard about it but it's this evolution through time and this is now linked to probiotics. we have had years of freezing food and processing food and cleaning the bacteria out and now people are saying we need bacteria back in our guts to get our bodyis bacteria back in our guts to get our body is working and we need some
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real food. this is body is working and we need some realfood. this is where it is body is working and we need some real food. this is where it is also looking at where you marketed this, they look like medicine bottles, the kind of thing you would have in your medicine cabinet, why did you move into this? you have been a farmer for many years and till christmas we know very well, why this now? —— and tyrell crisps. we had 300 new orchards that had never been touched, the meadow was alive since the 17th century and this is a true expression of fermenting it straight into a bottle. as a farmer, we were making tyrell‘s and the distillery, it was fun making things on our farm, a product you could take direct and stand behind it. if you have a product, the pedigree is to have a product, the pedigree is to have the field it came from and how it's produced. you own it all the way up? we call it a vertical integration. we have this in the oil industry where you own the natural resource and take it all the way to market. is that the only way to make money these days? i think so. we are ina very... money these days? i think so. we are in a very... we have had so many
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fa ke in a very... we have had so many fake stories and now we are into sincere products, sustainability is important, you need to know where everything comes from and it truly does come from our local... we have had 70 different fads with gluten and different words, buzzwords —— we have had so many. republic are discerning. with access to knowledge now, social media, easy access into this that everybody does know. you can't hide and people want to know what is good for them —— the public are discerning. this is the next trend. you say that, you have been farming in the uk for a long time, how are you reliant on labour from outside the uk and are you concerned about brexit or not? great subject and we can took about this all day! all of our businesses with the last 15 years, like tyrell‘s, production, exporting, very, very serious for us all. i think it's more uncertainty than anything else, it's like a market crashes, things do find a
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level and they do carry on. i think it will all find a level from it. quite interesting with hoarding as well, hoarding and storing stuff. what are you doing from a practical point of view? for our business as it will carry on as normal, i believe. i don't think there will be any huge impact and if there is, i think it will be short—term. like all things in life, if you get too paranoid about something, it was turns out to be a lot worse. it might sound simple but if you look back to evolution, any anxieties you had, you've worried about things and they never turned out to be that bad in the end. me being a total sceptic, that's my... and an optimist as well! and an optimist. thank you very much. now to the chinese tech giant huawei and its role in 56 networks around the world. a leak from britain's national security council last month suggested the government is planning a limited role for huawei in the uk's sg.
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but on a visit to the uk, us secretary of state mike pompeo urged caution. this is a little of what he and his uk counterpart had to say. from america's perspective, each country has a sovereign right to make its own decision how to deal with the challenge. the united states has an obligation to ensure that places where we will operate, places where american information is, places where we have our national security at risk, that they operate inside trusted networks. and we will... and that's what we'll do. we have not made our final decision, as a government. we are considering the evidence, very carefully. but we would never take a decision that compromised our ability to share intelligence with our five eyes colleagues. that was jeremy hunt and that wasjeremy hunt and mike pompeo. sue is back and many reporting in the media on this today. it is such a contentious and tricky issue with mike pompeo, the secretary of state, yesterday talking about... serious political
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pressure. talking about the special relationship under threat. indeed. this is all about the uk's decision to use huawei around five g for the non—sensitive parts, the new network that will be built. —— 5g. the us raising concerns. and it has shared that amongst a number of its allies, saying this could might our ability to share security information. with the uk. which would have serious implications. it is around the ongoing discussions. we had the huawei leak that it was going to be used around some of that and the uk may have to look elsewhere for providers. for this network and that might lead to delays. very difficult because worries already embedded in the existing network. we will see how that works. another story that tickled our fancy today, how that works. another story that
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tickled ourfancy today, ali babar, this big chinese e—commerce group. —— alibaba this big chinese e—commerce group. —— aliba ba they this big chinese e—commerce group. —— alibaba they always had this global dream. they are changing the business model to go head—to—head with amazon. there is a lot of market opportunity, internationally. the penetrations of e—commerce, certainly in developing markets are quite low at the moment. there should be space for both amazon alibaba and. should be space for both amazon aliba ba and. the should be space for both amazon alibaba and. the drive for alibaba to move internationally is coming from a slowdown in the level of growth from its domestic operations in china. the growth rate, it is still growing but not at the same pace, so they are looking internationally to power growth in the business overall. thank you. it has been great to have you on the programme. thank you for your
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comments about the beautiful game. use the hashtag to read that debate. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. hi, there. good morning. the weather is going to settle down as we go through the weekend, but, for now, it's going to remain fairly unsettled. sunshine and showers in today's forecast, not quite as windy as it was yesterday. this is the pressure chart, you can see we have this area of low pressure, moving away towards the east and then these weak weather fronts moving their way south across many parts through today. that's bringing lots of cloud, some outbreaks of rain. the rain across northern england will tend to clear away and there will be rain clearing from western scotland. there will be some sunny spells in north—east of scotland, some sunshine, too, in the far south—west. 0therwise, though, there could be a few bright spells and quite a few showers in the zone from northern ireland down to the south—east of england.
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temperatures getting up to around 16 celsius in the south—east, about 9 or 10 degrees around those north sea coasts in the north—east. through tonight, that zone from northern ireland down to the south—east will continue with the cloud, some showery rain just edging its way a little bit further north. temperatures in the north—east of england getting close to freezing. elsewhere, about 4 or 8 degrees by tomorrow morning. so, friday, we've still got this weather front. it's not moving very far, it's still with you across central areas. again, more cloud across east anglia, the midlands up into north—west england and northern ireland. there will be a few showers developing around western scotland and through southern areas, but here there will be some sunny spells throughout friday. maximum temperatures will be fairly similar, 10 to 12 celsius in the north, up to 16 degrees in the south. into the weekend, i mentioned it's going to become more settled and that's because this area of high pressure moves in from the west and will start to block these weather fronts out towards the west. just a few glancing blows in the far north—west of scotland
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but during saturday, while there will be some showers across eastern areas for many of us, it's a dry and bright day with some sunny spells, light winds. maximum temperatures, they are just edging up a little bit, so 11 to, again, 16, maybe even 17 degrees in the west country and south—east wales. sunday morning, a bit of a chilly start. lots of sunshine expected. a bit of cloud building into the afternoon but, again, that will clear away by the evening and those temperatures continue just to rise a touch. we'll be looking at highs up to 18 celsius across southern parts. 11 to 15 degrees further north and it'll get even warmer into next week. bye bye.
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you're watching bbc news at nine with me, annita mcveigh. the headlines: the government is to cover the cost of replacing £200 million worth of unsafe building cladding similar to the type used on grenfell tower. the pace of change has not been fast enough. many developers have done the right thing, have stepped in, and we expect them to maintain those commitments and they have done so. prepare for the worst. a stark warning that some communities may have to move away because of the threat of climate change and flooding. here's dele alli. here's lucas moura. 0h, they've done it! tears, turnarounds and an incredible win for tottenham sets up the first


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