tv Business Briefing BBC News August 23, 2019 5:30am-5:46am BST
this is the business briefing. i'm victoria fritz. making waves — brexit ruffles the waters — as g7 leaders gather in the french seaside resort of biarritz. plus — powell power. markets look for guidance from the chair of the federal reserve as he addresses the world's central bank chiefs later. and on the markets, traders adopt a cautious stance as all eyes turn to the central bankers. activity in america's factories contracts for the first time in almost a decade. but the pound soars after a softening of the tone on brexit from the german chancellor.
we start in the south of france — where the seaside city of biarritz is hosting leaders of the g7 group this weekend. the united states, canada, france, germany, italy, japan and the uk. they'll all be there. on the agenda, inequality, climate change, trade. this is borisjohnson‘s first g7 as british prime minister. he comes fresh from the elysee palace — under discussion there was the uk's exit deal with the eu. the sticking point is the backstop — a condition to keep britain in a customs union with the eu if a trade deal can't be struck. this week the german chancellor angela merkel raised hopes of a compromise — inviting the uk to come up with an alternative solution for the irish border. but france's president macron
warned any agreement will not be far from the existing deal. don't forget, trump is in town. the president has held out the the prospect of a "very substantial" trade deal for the uk with the us post—brexit. as our correspondent damien grammaticas explains, the pressure is now very much on the uk. what it does mean is that from the point of view of the eu rather than the eu being left to look into antigen saying they are not prepared to do anything they say they are prepared to listen to anything but the ball is now in mrjohnson‘s or. he says he thinks a deal can be done and the eu is calling his bluff saying show us if you think it can be done. you have a few days, go do it. sharmila whelan is an economist at from aletheia capital. will the uk and the eu be able to agree on how to manage brexit if no
deal is forthcoming? the g7 is meant to be about fighting inequality but we know that the real topic of conversation will be brexit. i think it will be difficult. we are looking at disruption any which way. errors talk of alternative arrangement but it is the bit called to imagine what a compromise would be. the uk would perhaps accept a fixed term on the irish deal providing they can withdraw from it unilaterally and it is replaced with a digital border. but to the eu that will be difficult if not possible to agree to because it means reopening the withdrawal agreement and more than anything else you can delete the integrity of the single market. it is interesting. we heard this week the idea of a 30 day timetable which was put out there is a statement from
the chancellor, the german chancellor. what does that do? do you think that was an olive branch, was an ultimatum? how does it change things when it comes to brexit was to mark i think the meetings in europe have gone better than i was expecting. they were civil and construct live and gave us a 30 day breathing period to come up with an alternative plan. emmanuel macron did not shut the prime minister down completely. small wins. both parties know that a compromise deal will be very difficult. and the eu as well as britain are pushing ahead with preparing for no deal. let's talk more widely. exit is not happening ina vacuum. more widely. exit is not happening in a vacuum. there is also other trade situations going on in the
future of the international trade system will generally is endowed and no—one knows the effect of the us china trade war, for example. you think the g7, as a group, can step up think the g7, as a group, can step up to the plate here when it comes to trade? i would love to say yes but the g7... it is a talking shop. it isa but the g7... it is a talking shop. it is a useful place for leaders to meet and find out what other countries are doing that each country protects its own agenda. will we lose the trade dispute? will we strike a deal with the us and resolve our differences with the eu and brexit? no. all right. that was comprehensive. thank you very much and have a lovely weekend. i hope you will be able to enjoy the bank holiday weekend here. let's turn to the cost of borrowing now— this because the world's most powerful central banker — federal reserve chiefjerome powell
— is due to address a meeting of global bank chiefs injackson hole, wyoming later. global investors will be looking for any signal about how the fed will respond to growing recession fears. he's under huge pressure from president trump to cut interest rates further — which puts him in an impossible position — as michelle fleury explains. right now, it's the american consumer supporting the us economy. their spending accounts for two—thirds of all economic activity. yet with the trade war with china raging, the fear is it may falter. i feel very hopeful. i think we're going strong. it is getting a little shaky. it's scary, the whole thing is scary. so all eyes will be on this man, jerome powell, chairman of the us federal reserve. when he take centre stage at a gathering of global bank chiefs, can he calm anxious financial markets? the markets really want hear jerome powell promise more cuts down the road. they want to hear that the fed is going to do as much as it can to provide a buffer against the current trade war
and the weakening global outlook. but it is very possible that jerome powell may not deliver on that promise. and it is notjust wall street screaming for more stimulus. the president tweeted... ..and compared jerome powell in another tweet to a golfer who can't putt. even ifjerome powell hints that he will cut interest rates, will it be enough to satisfyjittery financial markets and a president eyeing re—election. most observers think not, putting the world's top central banker in an no—win situation. michelle fleury, bbc news, new york. youtube's owner google says it has shut down 210 channels that were part of what it calls a "coordinated" attempt to post material about the protests in hong kong. the search giant linked its move to similar action taken by twitter and facebook earlier this week — but it stopped short of explicitly accusing china of a state—backed effort to spread misinformation. shara njit leyl is
looking at this for us. what do you make of all of this? essentially when asked by the bbc, a spokesperson from google would not comment on whether they agreed with twitter that this was part of a chinese stayed bad misinformation campaign designed to basically undermine the protest movement in hong kong. essentially they did say, they confirmed that over 200 youtube channels that appear to be part of a co—ordinated campaign against those protests in hong kong, according to the company security threat analysis, they behaved in a co—ordinated manner uploading videos related to the hong kong protest with and as. we know this comes after twitter and facebook accused the chinese government of supporting a social media campaign designed to discredit those protests and the movement in hong kong. they say that
the chinese government are trying to sow the chinese government are trying to sow political discord in the city. twitter and facebook are banned in china as part of the government's so—called great firewall of censorship. they suspended nearly 1000 active accounts last week linked to this co—ordinated influence campaign, they say. twitter said it shut down about 200,000 more before they could inflict any further damage. and according to one expert, china seems to have taken a page from the russian playbook as it uses social media platforms outside the country to wage a disinformation campaign against the protests. now let's brief you on some other business stories. ryanair has come bottom in an annual survey by the consumer magazine which?, rating the customer services of 100 popular uk brands. it is the sixth year in a row that ryanair has come last. telephone and online bank first direct came top, with retailers marks and spencer and waitrose also performing well.
hasbro is buying entertainment 0ne — the owner of peppa pig — for around $4 billion in cash. it's the biggest purchase ever by the us toy giant — and its latest move into media content following tie—ups with disney and paramount. the deal gives hasbro access to the lucrative infant and pre—school market. and now — what's trending in the business news this morning. cnbc has been talking to white house economic adviser larry kudlow — who says there could be a tax cut before election day favouring middle classes and small business, as president trump tries to win over voters. bloomberg business week has an indepth report: a 203—year—0ld trading empire faces china's wrath 0ver hong kong. it says beijing's crackdown on cathay pacific sends a chilling message to other businesses. and business insider is among
those looking at the ceo of hewlett packard — dion weisler — who is stepping down ‘due to a family health matter,‘ and returning home to his native australia. and don't forget — let us know what you are spotting online — use the hashtag #bbcthebriefing. that's it for the business briefing this hour, but before we go, here are the markets. there has been a little bit of a mixed session. most traders are a little nervous about placing bets at the moment because we are yet to hear from the moment because we are yet to hearfrom jerome powell, the the moment because we are yet to hear from jerome powell, the lead the moment because we are yet to hearfrom jerome powell, the lead of the federal reserve, about what he plans in terms of interest rates and what his thoughts are in terms of the global economic slowdown. at the moment, thin volumes. i'm sure that will change in 2a hours time.
messing about in the river carries more risks that you might think. the world wide fund for nature says english rivers are being "used as open sewers", with nearly nine out ten failing to meet clean water standards. they say the environment agency is "very unlikely" to meet its clean river target by 2027. victoria gill reports. 0ur rivers are the veins of our towns and cities and countryside. 0ur rivers are the veins of our towns and cities and countrysidelj like towns and cities and countryside.” likejumping off into rivers. towns and cities and countryside.” like jumping off into riversm towns and cities and countryside.” likejumping off into rivers. it is so warm likejumping off into rivers. it is so warm now! but beneath a picturesque surface there is a festering problem. i have a few friends who feel a bit poorly after going in. just a bit of feeling sick. as these videos are captured
in west yorkshire ‘s show, when heavy rain overload sewage treatment pie, untreated sewage is released into the river. and campaigners here argue that the water companies allowing this to happen too often. the limit, the amount of inflow going into the sewage plant was that 17 years ago. we have a significantly different environment 110w significantly different environment now with much more run—off, much more building going on and we have huge population increases and climate change. so more water is flowing into the sewage plants. so it is filthy and it sits on the bed of the river. yorkshire water, the company responsible, told bbc news that it had already taken steps to ensure that the works discharge less frequently and that it operates legally and within environment agency guidelines. and this is not just about one local beauty spot. pollution in our rivers is a much bigger issue. with outdoor swimming becoming more popular, public health england already recommend that people take a hot shower after a
swim to reduce the risk of getting sick. that some experts say we should avoid swimming in rivers altogether. the environment agency admits that funding cuts have affected its ability to protect rivers. that it has refuted cam claims from campaigners that allows the industry to pollute. this is the briefing from bbc news. the latest headlines: as concerns grow over the amazon wildfires, the country's president accuses foreign leaders of trying to make political gains. after talks with the leaders of germany and france, boris johnson looks forward to a meeting with donald trump. the buses bangladesh hoped would repatriate hundreds of rohingya refugees — but nobody would get on board. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the city am and both of its front page stories have caught our eye —
the strengthening of the pound after borisjohnson‘s meeting with his german and french counterparts, but it's peppa pig who's walking away with a deal — us company hasbro's set to buy the british company who created her for $4 billion. keeping it with business and the financial times looks at how companies are coming under pressure to put rewards for society before rewards for shareholders. thejournal in ireland has a study on fake news — it asked people about events that never happened and found people were much more likely to falsely recall them as being true if they tied in with their own beliefs. and finally, the telegraph reports on downing street criticising comments made by a leading british news executive. it's after dorothy byrne said journalists were too scared to call politicians liars and cited boris johnson in her speech.