tv BBC Business Live BBC News July 9, 2019 8:30am-9:01am BST
this is business live from bbc news with ben thompson and sally bundock. facebook‘s face—off. a privacy activist in europe takes on the social networking giant in a bid to protect your data. live from london, that's our top story on tuesday 9july. the challenge to facebook — at the eu court ofjustice — it could rewrite data—privacy laws, with major implications for how your personal data is transferred around the world. also in the programme — the latest tariff fallout? japan's nintendo switches part of production of its gaming consoles
from china to vietnam. and european markets look like this at the open. we'll get an expert view on what's moving the numbers, and what to watch in the trading day ahead. and we'll get the inside track on life after rugby. two former saracens rugby players have brewed up second careers after spotting a gap in the market for craft lager. today we want to know — do you eat at your desk? i do. hands up. keyboard crumbs, noisy crunching and strong smells are winding up even the most easygoing of colleagues. so, what do you think is acceptable? let us know — just use the #bbcbizlive. hello and welcome to business live. sally bundock and her conflicts in the morning, that's all i'm saying! we start with a hearing in europe's top
court, which could have huge implications for hundreds of thousands of companies with european operations. in a landmark case, the european court ofjustice in luxembourg will decide whether the way facebook transfers personal data to the us should be outlawed. the court will hear arguments by austrian privacy activist max schrems, who claims the us government doesn't sufficiently protect european data when it's shipped across the atlantic. the case comes four years after mr schrems brought down safe harbour — a previous data—sharing deal worth billions of euros between europe and the united states. at stake now is the legality of so—called "standard contractual clauses", complex mechanisms which allow facebook and thousands of other companies to move data freely from europe to the us and elsewhere. while the european commission considers the system legal, mr schrem and his legal team are expected to argue that it runs against eu privacy rules because it allows
us national security agencies extensive access to europeans‘ digital information. the court's decision could potentially pull the plug on cross—border communications and data transfers worth billions of dollars by international companies ranging from banks to carmakers. a final ruling isn't expected until next year. sally. joining me now is peter church, counsel in technology practice at the law firm linklaters. good morning, peter. you were listening to that very politely, as it were. talk us through the key issues. the key issue is privacy versus inevitability, so on the privacy side, is it fair that your data can be transferred by a private company in the eu to the us where it can be looked at, analysed and profiled by law enforcement agencies, and against that, there is inevitability, we live in a globalised economy, the idea that we can simply stop these data transfers from taking place does not seem to
be sensible or practical. the cambridge analytica scandal with facebook shows us that actually data that they had was used in a way that we would not like it to be used as facebook users. what do you think the outcome of this case might be? my the outcome of this case might be? my view is it is going to be quite difficult to sustain the standard contractual clauses and there are a couple of reasons for that. most importantly, the referring decision by the irish high court was quite negative, it carried out a relatively detailed analysis of the regime in the us for the analysis and access to data by law enforcement agencies, and came to some fairly negative conclusions. added to that, privacy is a fundamental right under eu law so it will be given an awful lot of weight in this case. it is interesting because when you compare to how privacy is protected in the eu it is very different to the united states, it isa very different to the united states, it is a different picture, and that's the issue when data is moving from one area to another. in the eu we place a lot of weight on privacy
isa we place a lot of weight on privacy is a fundamental human right and in the us there is a biggerfocus on freedom of speech server is definitely a difference. in the us there have been various attempts to introduce privacy law in the us and it has failed because it has run up against the much stronger weight they give to freedom of speech. against the much stronger weight they give to freedom of speechm terms of if the european court in luxembourg work to change things, we re luxembourg work to change things, were to say actually the way data is being used in the us is unlawful on the part of european‘ data, that could have big implications for facebook and many other companies. it will have huge implications command as you said, notjust for the big tech companies, right across the big tech companies, right across the board, any company dealing on an international basis will need to comply with the rules on the gdpr and transferring data and standard contractual clauses are vital and if you take them away there are very few other mechanisms companies can rely on in order to make these tra nsfers. rely on in order to make these transfers. peter, thank you for sharing your expertise. it is something to keep a close eye on and we will do that for you.
we will but let‘s look at some of the other business stories from around the world. instagram has announced new features aimed at curbing online bullying on its platform. one new tool being rolled out is a warning generated by artificial intelligence to notify users that their comment may be considered offensive before it is posted. another proposed feature called restrict could make posts from an offending person visible only to that person. the uk government is pumping nearly $50 million into improving the infrastructure for electric vehicles despite a sharp drop in hybrid car sales after state—funded grants were cut. the department for transport will invest in uk engineering to transform the network of electric charge points. sales of plug—in hybrid vehicles slumped by more than 50% last month after the government scrapped a grant ofjust over $3,000. the uk online delivery firm 0cado has revealed that the fire which ripped through its warehouse
in february cost over $137 million. the company has already claimed millions back from its insurers, and eventually expects to be able to reclaim all the cost. even so, it drove 0cado to a half—year loss of $178 million and knocked 2% off its sales. nintendo is to move part of its switch console production from china to vietnam. the firm says it‘s not about possible us tariffs but to diversify political risk. monica miller is in singapore. they say it is not about tariffs on goods coming out of china but reading between the lines... you kind of had to on this one, we have heard from many analysts who say there are no winners in a trade war, however vietnam seems to be the place to be as companies are looking to move their operations out of
china. right now nintendo outsources almost all of its switch console production to contract manufacturers in china, however, a spokesman spoke to reuters earlier today and said it is planning on shifting some of its production to vietnam this summer. they may say it has to do with the trade war but it is looking to diversify its risk when all of this is going on at this is why they are trying to protect themselves from tariff hikes by washington on products imported to the us from china. nintendo isn‘t the only one thatis china. nintendo isn‘t the only one that is looking to do this. apple last month mentioned it was also looking to do something of the same sort. monica, thank you, good stuff, keeping across that story from our asia business hub, monica miller. let‘s look at the markets. tokyo‘s nikkei edged higher — with markets still focused on the us fed‘s interest rate stance after strong usjobs figures. remember we get that rate meeting at the end of the month. rates set to be cut, but not
as severely as first expected. that was enough to push wall street stocks lower for a second straight session. that was yesterday‘s close on wall street, the dow jones that was yesterday‘s close on wall street, the dowjones a little lower on the prospect of a low interest rate cut. let me show you what is happening in europe. following the lead set by wall street last night, keep an eye in no on shares in deutsche bank. we talked about this extensively yesterday, those 18,000 job cuts announced over the weekend, we have already seen those start to ta ke we have already seen those start to take effect. keep an eye on iag, the pa rent take effect. keep an eye on iag, the parent company of ba of that record fine yesterday for the massive data breach last year. we will talk about what else to watch on the trading day ahead but first michelle has the details about what you need to know on wall street. all eyes will be on boeing this tuesday. the aircraft maker is expected to report a drop in deliveries for the second quarter when it releases figures forjune. it‘s been hurt by the extended grounding of its bestselling 737 max jets. on monday, saudi arabian airline flyadeal pulled out of an earlier agreement to buy at least 30
boeing 737 max aircraft. in earnings news, the growing popularity of healthy snacks and beverages is expected to boost sales for pepsico when it reports its second—quarter results. also riding the blue wave, denim, that is, levi strauss is expected to post a rise in second—quarter revenue. that‘s as denim‘s popularity surges. all eyes will, however, be on what the company has to say about tariffs and its exposure to levies. 0n the economic front, it‘s pretty light. more to come later in the week. let‘s unpack that a bit further. that is michelle in new york. joining us is supriya menon, senior strategist at pictet asset management. good morning, supriya menon. good morning, supriya michelle saying there will be more to discuss concerning the us economy later this week and there will be quite a bit to chew on, isn‘t there? week and there will be quite a bit to chew on, isn't there? absolutely, a few things we are watching this week from that perspective. we have
chairman powell testifying this week in front of a confessional panel and that will give us an idea of the fed‘s outlook on the economy, the minutes from the fed‘s last meeting as well as cpi, inflation data in the us, which has been relatively wea k the us, which has been relatively weak recently and it is supposed to wea ken weak recently and it is supposed to weaken a bit this week but we will look at that piece of data as well. with a really strong jobs report friday, people are kind of changing their name on what the fed might do next —— changing their mind. their name on what the fed might do next -- changing their mind. there was a decent probability of even, 50 basis points of rate cuts at the end ofjuly. that basis points of rate cuts at the end of july. that has basis points of rate cuts at the end ofjuly. that has been pared back. there is 100% certainty nearly of one rate cut at the end of this month. the question is whether or not that will recede as well. we are of the camp that that is far from a certainty, it could be pushed back into september. so how will the
markets digest that? there is so much built into markets in terms of the central banks, all of the markets‘ advance has been down to pe expansion, valuation expansion, rather than earnings, which have been at a standstill. on a corporate front, i have touched on deutsche bank, we have the news over the weekend, and we are getting a sense of where thejob weekend, and we are getting a sense of where the job cuts could fall. we saw the first cuts yesterday. their shows are pretty volatile. absolutely, their shows yesterday took a bit of a beating. —— of their shares. notjust took a bit of a beating. —— of their shares. not just because took a bit of a beating. —— of their shares. notjust because the revenue forecast seemed a bit optimistic and therefore the markets didn‘t have confidence that their revenue forecasts would come through and that targets on return and assets would be hit in 2022, but notjust that, it seems like the expectations they have with respect to the capital run—off, the asset run—off and the bad bank they have set up, may not be enough to prevent another capital raise, so that has led to
the market taking quite a dim view of the restructuring that was announced yesterday. yes, it was drastic, but probably a bit too late. thanks for an hour, supriya menon. she has already confessed to us menon. she has already confessed to us in the green room that she dines at the desk. like you. like you. like i do. there is a whole list and we will talk about this later, things that you shouldn‘t eat at work, including apples, they are a no—no. it is the noise, i get that. notjust it is the noise, i get that. not just the crumbs, it is the noise, i get that. notjust the crumbs, it is about the noise. we will talk about that later. after retiring from professional sport, what do you do next? we‘ll get the inside track on how two former saracens rugby players brewed up the idea for wolf pack craft lager. alistair hargreaves joins us live. you‘re with business live from bbc news.
more than half of businesses say they‘ll face problems if the uk government imposes its proposed changes to the immigration system. new research for the british chambers of commerce found that plans to limit length of visas and minimum salaries would mean businesses struggle to get staff, and skills. the chief economist for the bccjoins us. this relates to two specific things, but who can come here and of these is determined how much people can earn. just explain this. our survey shows that at a time of record low unemployment and recruitment difficulties across the uk businesses are concerned that some of the proposals, for example the arbitrary salary threshold, the time restriction on low skilled migrants and the extension of the immigration skill charge will increase the barriers to recruit and increase employment costs as well. that comes ata time employment costs as well. that comes at a time when unemployment is
really low a nd at a time when unemployment is really low and businesses are facing an uphill struggle to find staff. you don‘t agree with the system being proposed? you don‘t agree with the system being proposed ? what you don‘t agree with the system being proposed? what would work better? good immigration policy is not just about attracting the best and brightest, despite having a common—sense approach to having to skills at all levels. what does this mean? regions and sectors across the economy and across the country have access to skills and staff quickly and cost effectively if they are not able to recruit locally. the challenge, of course, for those businesses facing the worry of brexit is access to the right skills too. absolutely and this is a cross economy problem. we are hearing from businesses in construction, retail and the health industry and all are finding issues finding staff at all levels and this is a key concern for the uk economy because businesses are saying that if they cannot access the right staff both short—term and long—term it could affect investment and growth more
broadly. it is good to talk to you, thank you for explaining that. clearly some huge implications about getting the immigration policy right to make sure business has access to the right skills and the staff that it needs. if you are in retail, you know this man well, mike ashley, the boss of sports direct and he says the offer of £51.9 million for the video gaming retailer is unconditional and has attracted the backing of shareholders owning 16% of shares, so keep an eye, he could be owning game digital. you‘re watching business live — our top story — europe‘s top court today begins hearing a landmark challenge to facebook by a privacy activist over the way it transfers data to the us. the case could have major implications for how your personal data is transferred around the world.
it is worth keeping an eye on and we will do that for you, so that‘s covered. it‘s a dilemma faced by many professional sportsmen and women after retirement — especially forced retirement: what to do next. some might go into coaching or broadcasting, while others take the plunge and start their own business. it‘s what two former saracens rugby players, alistair hargreaves and chris wyles, did when they launched their own microbrewery — called wolf pack. they did it after identifying a gap in the market for craft lager. alistair is with us in the studio. welcome to a business live. i have to say, rugby, lager, i can‘t imagine where you got the idea! to say, rugby, lager, i can‘t imagine where you got the idemm is imagine where you got the idea!m is not too much of a leap, is it? tell us your story because you were a star at saracens and in south africa where you are from. what happened and why did you need to start a business? you mentioned there is always a dilemma facing
sportsmen and women and it‘s about the fact you have to hang up your boots one day. my business partner andi boots one day. my business partner and i chris wyles played for saracens and we started to panic a little bit of thinking hang on, this is going to come to an end one day, let‘s get ahead of it, how can we be proactive and set up a business so that we have something to look forward to after our playing days run out. and why beer? we can't really move for craft gin and kraft ale right now but you‘ve done beer, the lager route, which is less popular. —— craft ale. the lager route, which is less popular. -- craft ale. we moved into a new stadium at the time called adnams park and we thought what the by adnams park and we thought what the rugby fans want and what are the offerings they get at the moment that we can improve upon and in the lager space we thought it was something attractive and i guess craft is becoming an overused term, as you say, it is really crowded. but for us it is a signifier of quality and a premium experience and in the lagerfield quality and a premium experience and in the lager field we felt there was an opportunity to raise the bar. so, there was a bus involved. tell us about this particular event on this new site. we went to the ceo of the
clu b new site. we went to the ceo of the club at the time and said we want is start a burberry and sell beer and sell it at the stadium and he said, that‘s great but we have a commercial arrangement with the brewery so you cannot sell it in any of our bars so myself and chris said no problem, we spent a few weeks searching around scrap yards and found an old double—decker bus and the day before the first day of the season we parked outside the club, we fit their taps and we said it is not in your bars and that‘s how we will go. that is innovative and you‘ve got to think in those terms when you start a business, you‘ve got to stand out and think outside the box. a certain amount of naivete helped us. we thought, why can‘t we ta ke helped us. we thought, why can‘t we take a chance and do things differently? we have always tried to keep that mantra at the heart of what we do at wolf pack. as well as taking chances, you have to keep your business head on because there we re your business head on because there were opportunities that came your way to make the business bigger, funding, advertising and sponsorship and all that kind of stuff. you can‘t take every other, you‘ve got
to be careful with what you choose. absolutely, you cannot run before you can walk and we have had to say no and be focused on our strategy, which is making lager and making it really well and making craft beer more accessible. what would make you say no? what would make you say, for now, that is not as? millions of agencies and millions of events, new variants, hiring new people, wanting to spend too much money too soon. just having a bit of discipline behind setting up a sustainable business, rather than one that shines and burns brightly for a short period of time, but something that lasts. at the moment, you just sell in the uk, so therefore, in terms of what might happen to us when we leave the european union, how that works and what it means in terms of trade and tariffs, you are pretty unaffected by that, aren‘t you? but what is your thinking going forward ? you? but what is your thinking going forward? pretty much come in terms of ingredients, we import some hops from continental europe, so that might be an issue. in terms of staff we run a bar and open up a few bars so staff might be an issue but there is lots of work to do in the uk, we
will sell about 1 is lots of work to do in the uk, we will sell about1 million is lots of work to do in the uk, we will sell about 1 million pints is lots of work to do in the uk, we will sell about1 million pints this year and there are so much scope for growth and head room and we are just enjoying the ride. sporting events, the big events coming up, we have the big events coming up, we have the olympics next year and there is plenty more around the corner. how will you make sure you are in the right position for those events? sport is a hallmark of what we are. we think sport is such an important pa rt we think sport is such an important part of the community and pubs are an important part of that so what we wa nt to an important part of that so what we want to do is carry on bringing people together, that feeling after a long day of work, the training session or a match, getting together over a pint and having a good time. at sara ce ns over a pint and having a good time. at saracens and the oval cricket ground where you pour it, so making an impact through sports and communities and hopefully having a really good time while doing it. alistair, thank you very much for coming in. that bar is very close to where i live so i might call in for one of those. dangerous! laughter let‘s talk about food waste now which is a huge problem all over the
world. 0ne restaurant in toronto may have a simple and effective solution — sell off every dish before the end of the night. here‘s how it works. it‘s the most satisfying. it‘s the best rush. he rings the bell. it‘s also exhausting because that means that we‘ve had a really busy weekend. i was trying to strategise some ways to draw a crowd on sunday nights and make sure we were busy and be worthwhile being open on sunday night. but also i had a very firm plan to be closed for three days, and realising we didn't want to have a lot of waste left over and didn't want to try and save food until thursday because then you're going to have less quality and that was not an option.
there's six steaks, just so you know. a lot of restaurants are in the mindset of reducing waste, but this is definitely the first time that i‘ve had the opportunity to be challenged to create dishes on the fly and a sort of reduce waste in a more interactive and, like, important and intense, in—the—moment way. business doing what they can to help the planet. supriya menon is back. we are going to talk about desktop dining. i hope you are paying attention to this! he is making out i‘m the worst offender in this building, i am not, let me tell you. there is a lot worse out there than me. you have
already confessed you are a desktop diner. yes, i‘m completely guilty and i bet ican yes, i‘m completely guilty and i bet i can beat you at it, sally. maybe... what is acceptable in the office? it depends on the person, for me, it smells, i don‘t bring a curry back to my desk and i‘d prefer if my collea g u es to my desk and i‘d prefer if my colleagues didn‘t but i‘m sure they would object to my crunching apples and crisps at my desk. it's and crisps at my desk. it‘s also about noise isn‘t it?, says if you regularly eat at your keyboard you should shake it over boiling water twice a year and you mightfind a boiling water twice a year and you might find a nice super. my might find a nice super. my employer encourage us to eat our lunch away from the desk, so we can have a nice lunch but getting away from the desk is an important point. this is the bbc business unit. we are not going to name names. we know who that is. we know who that is. we know who it is. this person appears on business life, i might add. just to say, many have been in touch to say you should get out at lunchtime, or break time, walk
around, get some fresh air and get away from the screen. it is better for your health and your eyes. why are you a desktop diner? is it because you are so busy? it is because you are so busy? it is because i‘m busy but nothing prevents because i‘m busy but nothing p reve nts m e because i‘m busy but nothing prevents me from taking 20 minutes away from my desk and we are lucky enough to have an office cafeteria and a lot of people do it upstairs. ijust and a lot of people do it upstairs. i just catch up and a lot of people do it upstairs. ijust catch up on things like the news at my desk, which i admit is not particularly healthy. staying with the food thing, mcdonald‘s happy meals in the spotlight over plastic. what is happening?m happy meals in the spotlight over plastic. what is happening? it is about making a sea change in your product range, supply chain, rather than sticking a cardboard straw in your plastic cup, i think investors and consumers demand that large companies such as mcdonald‘s take their responsibilities towards sustainability really seriously, rather than superficial measures such as the straw. it is a good point. that‘s in today‘s wall street
journal. thank you, supriya menon, great to have you on the programme. thank you for your thoughts and comments. we will do it all again tomorrow, same time, same place. goodbye. see you then, goodbye. hi, good morning. we‘ve got the unsettled weather continuing today with a north—south split across the united kingdom. for northern areas, this weather front here brings some outbreaks of rain in the south. this nose of high pressure is still trying to keep things more settled. so it‘s going to be a little bit drier and brighter across the south. further north, there will be the rain. but it will feel warm wherever you are through today. you can see the rain this morning across northern areas and it will turn quite heavy across the west of scotland. patchier rain for northern parts of england and there may even be a few spots of rain across wales, the midlands and eastern parts. further south is where you will have the best of the sunny spells,
temperatures here getting up to 2a celsius. even further north, those temperatures getting up into the high teens and perhaps even into the low 20s. so, for wimbledon today, we will still see temperatures into the 20s, 21 celsius, and there will be a fair amount of cloud. similar really to yesterday. through this evening and tonight the rain will continue at times across northern areas, even through central parts and there could be some showery rain pushing its way eastward into wednesday morning, overnight temperatures getting down to about 13—15d. during wednesday we will see quite a bit of rain across northern parts, showers pushing their way is to but they could be heavy across eastern parts for a time. for much of england and wales it will brighten up england and wales it will brighten up with some sunny spells before further rain spreads into northern ireland and the west of scotland. temperatures in the north about 19, 20 celsius, england and way, 23, maybe even 25 degrees in the south—east. 0n into thursday, that area of high pressure in the south
is slowly drifting away, and that allows this weather front, this area of low pressure, to influence many more of us during thursday, so likely to see some showers across southern areas. the showers in the north will be particularly heavy. there will be some thunderstorms throughout the day on thursday across northern england and across scotland. where those thunderstorms are likely to form remains uncertain. a maximum temperature is getting up to about 20—24d. 0n friday and into the weekend, high pressure starts to come back in again, so things becoming a bit more settled, there will be more dry and brighter weather with some sunshine, and again feeling quite warm, especially when the sun comes out, with temperatures into the low to mid 20s. bye—bye.
you‘re watching bbc news at nine with me, joanna gosling. the headlines: downing street continues to stand by the uk‘s ambassador to the us, despite donald trump‘s latest tweets saying he will no longer deal with him. hong kong‘s leader declares that her controversial extradition bill, which sparked weeks of angry protests, is now dead. i reiterate here there is no such plan. the bill is dead. a crisis of childhood — a major new study finds young people are feeling under more social pressure than ever before and struggling to cope. could labour be about to shift its policy on a brexit referendum this morning after the unions agree the party should back remain in any referendum? a pioneering gene—silencing drug is approved for nhs use
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