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tv   Business Briefing  BBC News  July 8, 2019 5:30am-5:46am BST

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this is the business briefing. i'm maryam moshiri. deutsche downsizing. why one of the world's biggest banks is slashing its workforce by 20%. all change! a new government in greece after a snap election, but what are the economic challenges facing incoming prime minister kyriakos mitsotakis? and on the markets asian stocks are lower as geopolitical concerns play on investors minds and trade tracks a negative end to last week on wall street asian stocks are lower and geopolitical uncertainty are playing on investors' mines. —— minds pulled
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on investors' mines. —— minds —— minds. thousands of staff at deutsche bank are worried about their jobs, after confirmation that up to 18,000 posts worldwide are to be cut over three years. it's part of a radical reorganisation of the german lender which is shrinking its investment banking business. it hasn't said where jobs will be lost, but with almost 8,000 staff, london is the home to its biggest trading operation. our business correspondent katy austin explains why the cuts are being made. 0nafairly long on a fairly long list of long—term problems, the german backhand bead we re problems, the german backhand bead were falling share price, money laundering scandal. it had been widely expected to cut back its underperforming investment operations and today it is announced a radical reshaping plan which will
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see it significantly reduce its investment banking arm are stopping many of its share trading operations was up along the way, 18,000 jobs will go as a result, globally. that will go as a result, globally. that will be by 2022. it hasn't pinpointed exactly where in the world the axe will fall but as deutsche bank employs only eight thousand people across the uk and due to the nature it does in the city of london, people are expecting to ta ke city of london, people are expecting to take a heavy hit. —— the nature of the work it does in london. this won't solve all of deutsche bank's problems but they have to do something fairly radical as they have struggled to compete against american banking giants. greece's centre—right opposition party new democracy has won the nation's snap general election. with most districts counted, prime minister alexis tsipras has admitted defeat to his rival, kyriakos mitsotakis. so, what kind of economy
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is he taking over? since 2010, greece has undergone three bailouts worth a staggering total of nearly e310 billion, that's around $360 billion. it was the biggest bailout in financial history. greece exited its last bailout in 2018. along with the bailout came austerity measures which forced the government to cut spending and increase taxes. the effects were harsh — the greek economy shrunk by a whopping 25%. hundreds of thousands of businesses went under and 1 in 5 greeks were pushed below the poverty line. unemployment rose — at the height of the crisis in 2013 more than half of all young adults were unemployed, that's now fallen to around 40% for the most recent figure. this is despite half a million young people leaving the country. the greek economy returned to growth in 2017 and the imf forecasting an increase
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of 2.4 per cent this year, but it's unlikely to return to its pre—crisis size at least until the early 2030's. after the victory was clear, prime minister elect kyriakos mitsotakis had these encouraging words. of course our discussions with our european creditors will begin but we have made our plan very, very clear. no real surprises here involved. we wa nt to no real surprises here involved. we want to drive a real reform agenda for the country that is ambitious, very bold and very, very detailed. and of course, we have made the case that lower primary surpluses will be to the benefit of everyone. nikolaos antypas, lecturer in finance, icma centre, henley business school joins me now. thank you forjoining us on the programme. what do the results mean for green? the results mean that the good people had enough of the populist experiment led by alexis
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tsipras. the key outcome of the election is the new governing party, new democracy, has no won an outright majority in the parliament was up its leader, it gives him an opportunity to implement a highly ambitious reform plan which is essential in the greek economy. the social markets seem to agree with kyriakos mitsotakis and have voted for him. it is turning at a record low of about 2% and the greek stock—market is more than 9% since the election lives month. it may be too early to say but looks like greek economy is heading for outstanding growth over the next few yea rs. outstanding growth over the next few years. he has the seat of approval from investors and greek people but he has made these premises was not how will he implement them? you
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limit let's talk about his core plan. it has four main action points. the first one is slashing taxes will stop the corporate tax rate is expected to go down from 29% to 20% and there should be additional cuts in personal income tax and vat. it will help them grow. the second measure is about reform. no—one has proclaimed that he will reform the public sector by privatising streamlining some of the government functions. these will help increase bureaucracy and efficiency. —— decrease theocracy and increase efficiency. —— bureaucracy. there have been rings preventing greek banks from providing capital to even the best of our awareness. borrowers with a good credit score. this is a big problem for an economy that needs to
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grow. the fourth and final point of his plan is that the new government is market friendly and this and attract investors. it is expected to be utilised when it is more inviting in the environment in greece. it will create hundreds of jobs in the environment in greece. it will create hundreds ofjobs which are desperately needed in these times. of course there are caveats. that is all very interesting, thank you very much indeed. now let's brief you on some other business stories. low—cost saudi arabian airline flyadeal has cancelled an order for 30 boeing 737 max aircraft. the state—controlled carrier said the move would result in it operating an all—airbus a320 fleet. the decision follows the crashes of two of the boeing jets, which killed 346 people. australia's housing market has shown early signs of improved buyer confidence. according to data from major
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analysis firm core—logic, the number of homes sold at auction rose this month. that comes after the country's central bank cut interest rates again in a bid to boost the sluggish economy. as you've probably heard, the usa has won the women's world cup for a record fourth time. but a rather different football competition has been taking place in australia. robocup 2019 saw teams from more than 30 countries travel to sydney to play robot football. and as our correspondent hywel griffith found out, they take it all pretty seriously. it is the beautiful game but not as you know it. yes, there are moments of drama, outrageous tackles and of course, goals. but this is modern
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day football with a difference. this is jacka, a kid —sized robot from germany. this is a mid-sized robot from the netherlands. this is an aduu from the netherlands. this is an adult sized robot from china. yes, they designed and programmed by humans —— they are designed. 0nce they are on the pitch, its up to them. robots are autonomous. there is no remote control. they have to see the ball themselves and kick them themselves was of the games can be unpredictable and sometimes exhausting to watch. a bit like the real thing then. they get incredibly competitive. a lot of teams don't get much in the competition but there is a lot of development that comes before. it is very serious, absolutely. s we want to win very much but at the end of the day, we win some games and we lose some games. last year's world champions
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in the mid—sized league where tech united from the netherlands. since the first robocup back in 1998, the game has evolved. now it is notjust about technique, the robots need tactics. what he saw a few years back, robots were good at shooting and passing only. that was enough. but now you need to combine all those things together in a good strategy and make sure the robots work together. there is more to this than a bit of a spot with circuitry. football depends on natural human instinct. something the robots aren't blessed with but as they become more sophisticated and work asa team, become more sophisticated and work as a team, they can apply those skills to other fields. the ultimate challenge is still way off but by 2050, the aim is to have a robot tea m 2050, the aim is to have a robot team that can play and beat the humans at their own game. thats it for the business
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briefing this hour. following pride celebrations, there is uk black pride. 0rganisers say it is uk black pride. 0rganisers say it is more diverse than the name suggests. there is food, there is music and there are plenty of rainbows. this is uk black pride. events like black pride show you can be you, unequivocally, unashamedly, and i'm here for that! this year, uk black
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pride has upgraded its location to have austin park in east london to accommodate bigger audiences. of course, other make pride events do also exist. earlier this month, the biggest pride event in the uk of all time, pride in london. but some people here say they need this event because they don't feel comfortable at others. i was at london mate pride yesterday. i have never seen so many black people in one place here, though, it is so beautiful. it is so good to see was a bit so specific to this intersection which i really appreciate. been black and 93v i really appreciate. been black and gay in london hasn't always been easy so it is awesome to be here and pa rt easy so it is awesome to be here and part of many other people representing the same thing. part of many other people representing the same thinglj part of many other people representing the same thing. i think you should be accepted in your own skin in london. i feel like we should become turrbal in the london we live in and nice to see the people, your own sort of people, too. the founder of the event says that uk black pride is more inclusive than the name sounds. you
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limit being black, bring brown, this event is needed. ---- are being black, being brown, every facet, this event is needed. stay with us, you are on bbc news. she this is the briefing from bbc news. the latest headlines: a change in direction for greece as the centre—right opposition wins a snap general election. president trump has reacted to the british ambassador‘s cable leaks which labelled his team inept by saying he hasn't served the uk well. judges at the international criminal court are preparing to hand down a verdict in the case of bosco ntaganda, a congolese warlord accused of mass murder, rape, and abduction. now it's time to look at the stories that are making
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the headlines in the media across the world. we begin with the ft who they lead with the news that deutsche bank will cut 18,000 jobs as part of a radical overhaul. the headline on the metro front page, ‘hunt for the mole at the f0' — the paper covers the fallout from leaked memos setting out the uk ambassador to washington's candid views of the trump administration. the arab news reports that iran is facing a 1—week deadline to end its nuclear blackmail or risk global sanctions imposed by the un security council. the washington post carries an image of the us women's football team lifting the world cup after their 2—0 win against the netherlands. but the paper goes on to say that the players have another battle to fight back home, for equal pay. and bbc news online are asking the questions. is it ok to wear flip flops at work? and can dress codes in the office be relaxed as temperatures increase?
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so let's begin. with isjonathan charles, managing director of communications at the european bank for reconstruction and development. i'm away. it just i'm away. itjust realise it needs to concentrate. you go back to what they were saying at the beginning of all of this, long time ago, they had this in ambition to be a real investment bank. they wanted to take on goldman sacks. clearly that doesn't work. this is devastating news. you're talking about the workforce living over the next few yea rs. workforce living over the next few years. you have 8000 people primarily here in london and
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birmingham as well. they will


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