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Transcripts For BBCNEWS BBC Business Live 20170516

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Its faced some choppy waters in recent times well ask whether the brexit negotiations can make for calmer seas. And what do you buy from Vending Machines . Drinks, sweets, how about a supercar . a Vending Machine in singapore is offering luxury vehicles including bentleys, ferraris and lamborghinis. Today we want to know whats the most surprising thing youve ever seen in a Vending Machine . Let us know. Just use the hashtag bbcbizlive. Hello and welcome to Business Live. Today, the Uks Labour Party will release its manifesto ahead of next months general election. Although the formal announcement is expected in a few hours;time, is expected in a few hours time, last week a leaked copy of the document revealed labours plans to scrap the governments existing white paper on brexit negotiations. The conservative manifesto is expected in the next few days. So where do the two parties stand on brexit . The labour Party Favours managed migration, but will stop short of committing to specific immigration targets, unlike the conservatives, who have pledged to limit net migration to the tens of thousands. Jeremy Corbyns Labour Party says it wants to retain the benefits of the european Single Market and will negotiate on that basis. By contrast, theresa mays conservative paper has suggested it is prepared to take the uk out of the Single Market if necessary. Labour has also rejected the idea that britain can leave the European Union without first agreeing a formal trade agreement. Meanwhile, theresa mays says no deal is better than a bad deal. John mills is chairman ofjml, labour donor and part of the vote leave campaign. John, thanks for being on the programme. Just clarify your position a bit further for our viewers come so that they are clear. We mentioned you are a labour donor, have been for many years, but actually, you are a bit of a hard brexiteer, you were definitely in the leave camp . Yes, i think there is quite a wide consensus in this country that the best outcome would be for us to come out of the Single Market, come out of the European Economic area, out of the Customs Union, but then to negotiate a free trade deal, which in Trading Terms would get us back pretty well to where we are at the moment, but without all of the costs of the Single Market. If we could achieve that, i think it would be a big results. Going on what you have just said to me, we assume that youre not with the Labour Party Stands when it comes to its, which is of brexit . I think that one i have just said and suggested would give british exporters access to the Single Market on pretty much same terms as they have at the moment. I think there is a risk that that deal will not be agreed within two years, in which case it will be a more difficult situation. Either the European Union will offer us membership of the European Economic area, and give us access to the market, but with cost involves. I think it will depend on how high those costs are, as to weather it is worth britain saying, that is too expensive, were going to go for the wto option. I think that is the governments stands. Many people from companies listening to you now might be thinking, that is not my sta nce might be thinking, that is not my stance at all, actually, i want access to the Single Market, i want every soft exit approach, just give them a sense of how your company operates, you make goods in china which are then exported all over the world. Yes. And youre not concerned about the chaos, the delay, that could become part of the normal bottle at least for a foreseeable time, asa bottle at least for a foreseeable time, as a consequence of the uk leaving the European Union . time, as a consequence of the uk leaving the European Union . I dont think there ought to be long views and big problems. I mean, there are going to be changes in administrative arrangements. There isa administrative arrangements. There is a difference between having Free Movement of goods and a free trade area. The Customs Arrangements would be more complicated. Many would argue that it would be much more complicated to get goods, lorries, across borders, that kind of thing . There is no reason why it should. We are very familiar with these customs procedures. You have got to get them organised in advance, and that i think is what the government should be doing. There is a Computer System which needs to be in place by the time all of this happens, to make sure that you can clear containers and lorries through customs quickly. These are not insurmountable problems, just things which the government needs to tackle. A lot of the businesses we have spoken to have said that a tariff is something they could potentially stomach, as long as they do not have the delays and disruption do you really feel there would be no period of transition which will damage business in the uk . I dont think there needs to be. Of course there will be problems. At why should the government take that stance . They have got briefly to do it, they need to recruit the people, get the procedures in place, get the it systems organised, is what needs to be done. John, we appreciate your time this morning, thank you for coming in and being on business life. Later in the programme, we will be speaking to the Chief Executive of the uk chamber of shipping, who has a different take on what this might mean for businesses. Lets take a look at some of the other stories making the news. The Wall Streetjournal is reporting that ford is planning to cut about 10 of its 200,000 strong global workforce. The firm had already announced plans to cut costs by 3 Billion Dollars to cut costs by 3 billion as car sales in the us have slowed. In a statement, ford says it has not announced any new Efficiency Actions and it does not comment on speculation. A court has told uber it must return thousands of pilfered files from googles Self Driving Car division waymo. From googles Self Driving Car division waymo. Thejudge has also banned a top Uber Engineer from involvement in the firms autonomous driving project. Waymo sued uber over claims that a former employee stole Trade Secrets that were later used by its rival. Although a blow to uber, the ruling stopped short of shutting down the firms self driving unit. Vodafone, the worlds second biggest mobile operator, reported a 6. 71 billion loss for the 12 months to the end of march, earnings dragged down by its troubled indian unit. The company has been hit by fierce competition in india, one of the worlds fastest mobile markets, and has been forced to merge its operations there with the countrys idea cellular. Asian stocks climbed to a fresh two year high. Asia was following wall streets lead, where commodity linked stocks and currencies got a lift from Rising Crude Oil prices after major producers saudi arabia and russia said they would extend Oil Supply Cuts into 2018. Busy day in Europe Markets will be waiting on uk Inflation Data out germanys Confidence Gauge and gdp figures for the euro area. And Michelle Fleury has the details about whats ahead on wall street today. In todays depressed retailing world, are there any companies which can buck the trend . American shoppers hungerfor a can buck the trend . American shoppers hunger for a bargain can buck the trend . American shoppers Hungerfor A Bargain is expected to help the retailer which is the owner of tk maxx and marshalls. Americas Housing Recovery is also expected to help people avoid retailing blues. Rising house prices is putting more money into the pockets of consumers. That boom is also showing up in the latest data from the Us Commerce Department at least it is expected to. Housing starts for april are forecast to have risen to 1. 26 million units. Finally, something for football fan is, keep million units. Finally, something Forfootball Fan is, keep your eyes peeled for the latest earnings from manchester united. Joining us is richard fletcher, the Business Editor from the times. We were just commenting that there is so much going on at the moment, it is almost like we cant touch on it is almost like we cant touch on it all. Here in the uk we have got Inflation Data and, later in the week employment numbers. Inflation data and, later in the week employment numbersm Inflation Data and, later in the week employment numbers. It is a big week employment numbers. It is a big week for data in the uk. There is the election, and also we have seen the election, and also we have seen the pound push up, touching 1. 3. And also some indications that people are more positive about the pound, despite the fact that the signs about the uk economy, there are some worrying signs. Consumer confidence surveys showing a downturn and house prices showing a bit of a downturn as well. It is an interesting time. Also, we are getting Inflation Data today which will probably show a rise to Something Like 2. 7. What is interesting is that on monday, we heard that wage rises were likely to come in at about 1 . So for the First Time Since 2013, people will see wages going down in real terms. I wonder what the Bank Of England will be thinking on that . Mark carney talked last week when he gave the Inflation Report about it being a challenging time ahead for uk households. So, its going to be a squeeze on real wages which will affect consumer spending, and that could push through into the real economy. We have had reports that ford are set to cut 10 of their workforce potentially. It is interesting in the car industry, we had a headline that tessa had surpassed ford and General Motors as the most valuable car company, yet they make a fraction of the amount of cars, it is tough times for the traditional producers . Absolutely. Ford making 3 billion of cost cuts, and they will be on a bit of a Collision Course with donald trump. There was this thing about opening a plant in mexico, and they scrapped that plan and instead promised to have morejobs in michigan. This report in the Wall Streetjournal, talking about 10 of jobs report in the Wall Streetjournal, talking about 10 ofjobs in North America and asia. 200,000 people worldwide. Thats a large number of people. And fords response has been not clear one way or the other . No, it looks as if this is quite a well sourced report, a bit of kite flying. And a quick word on oil . We have seen russia and saudi arabia talk about cutting further their output channels 1. 2 billion barrels a day. That has sent oil higher. But oil is in this kind of goldilocks period at a Trading Price which is great for the world economy. And the International Energy agency will release its estimates of april 0pec production today, which will give us a sense about the 0pec members and how they are sticking to those Production Cuts which they agreed on last year. Still to come, we will be getting the inside track on the Global Shipping industry, which has faced some choppy waters in recent times. Youre with Business Live from bbc news. Low cost Airline Easyjet slumped into a half year loss despite boasting a Record Number of passengers. Easyj et easyjet shares currently down about 496 in easyjet shares currently down about 4 in london. Theo leggett is in the Business Newsroom with more. Shares have actually been down as much as 6 in early trading this morning. Investors are not happy. In one sense, easyjet is not doing too much wrong. Passenger numbers are up about 9 , revenues are up, but the problem is, the company isnt making as much money, and a big factor is the fall in the value of sterling since the brexit referendum last june. Easyjet reckons that alone has cost them £180 million. It has also increased the companies costs because its fuel bill is paid for in dollars. Also, easter was later this year, meaning it falls outside the six month period come and easter is a very profitable time for the airlines generally. So, that was a problem as well. Lets hear what the Chief Executive of easyjet had to say earlier today. Outlines ten to make losses, 19 out of 21 years, easyj et has lost make losses, 19 out of 21 years, easyjet has lost money in the winter. The two years we made money, all the stars aligned of Foreign Exchange and everything. So actually, £80 million of that was Foreign Exchange, the weakness of the pound against the dollar. Because we buy our fuel in dollars. And of course, the £115 million is a hit in the first half but it is a benefit in the second half, because easter moved into april effectively. We also got some information in the earnings they today about What Easyj Et Earnings they today about what easyjet is planning to do in the post brexit world. Easyjet is planning to do in the postbrexit world. It says as a result of the uk referendum, it expects to establish an air operators certificate in another member state during the summer. This will secure the flying rights of the 30 of routes which are within the eu. It still has not said which country that will be in. But it still leaves legal uncertainty over what happens with routes from britain to the European Union after brexit. You can tell me were live when there are people sneezing in the background the Labour Manifesto is due later today. Youre watching Business Live. Our top story the Uks Labour Party will release its manifesto ahead of next months general election. Although the formal announcement is expected in a few hours time, last week a leaked copy of the document revealed labours plans to scrap the governments existing white paper on brexit negotiations. The conservative party are expected to release their manifesto in the next few days. The uk public will head to the polls on 8thjune. Now lets get the inside track on the Shipping Industry which is under pressure like never before. From a global perspective, overcapacity has been squeezing profits, but in the uk the impending departure from the European Union means even more disruption for the industry. And its big business. In 2015, more than 80 of all the worlds goods were moved by sea at some point. Its also an important industry for the british economy. Government figures suggest the maritime sector is worth about 14 billion a year to the country. But brexit means there are questions about Customs Controls which could cause major headaches. And also about the falling number of seafarers, People Who Work At Sea and will be crucial as the uk seeks new International Trade deals. Were joined by guy platten, Chief Executive of the uk chamber of shipping. Thank you very much forjoining us this morning. Thank you. Give us a ofa of a background of who you are bit of a background of who you are and how you got into shipping . finished my a levels and runaway to sea finished my a levels and runaway to sea in romantic style. I became a Master Mariner and did time at sea and came ashore and looked after Lifeboat Crews for a while and salvaged ships and got into the management and this job here. That is the normal process, isnt it, for those who go into that career . Typically someone going away to sea will spend a period of their career at sea serving on board ships and then they will come on board to fill a variety ofjobs, it could be technical superintendents, it could be in government, in our regulator, it could be as lawyers or ship broking or any type of careers as well. In terms of recruitment thats something youre concerned about. There is 800 people a year training . Yes, we have got 800 young people who start their careers in the Merchant Navy and wed like to see the number increase by 50 and hopefully double as well. We need those people to man the Shipping Offices and to man the regulator and these things further down the line. It takes ten years to get to that position so we need to start training the people now to fulfil thejobs in the training the people now to fulfil the jobs in the future. There is a Recruitment Crisis because of the cost. Its the industry thats bearing the cost of seeing the new young wannabes come through . Thats rightment at the moment two thirds of the cost of training is borne by the sponsoring companies and there is some support from government and its called Smart Funding and that ratio used to be 50 and it has dropped to a third. It is a disincentive to train more than they could. A lot of companies would train and source more uk cadets if the cost could fall. Shipping is international and they can source people from all over the world, some highly trained people. To us its a priority to try as reduce some of that burden to companies and in return theyll offer good careers for the young people coming through. Now, earlier in the programme we we re now, earlier in the programme we were speaking to john now, earlier in the programme we were speaking tojohn mills, he is a businessman and labour donor, but voted for the leave campaign. He was arguing that when it comes to brexit, customs, trade, issues at borders are all things that we should be able to get around. It should be able to get around. It should not cause excessive disruption if the uk leaves the Single Market. Whats your experience . The concern for us is not so much on the container, the low load, the load on, load off type market because things can be sorted. We have a concern about the processing from the system for processing from the system for processing customs declarations, the volumes will vastly increase when we come out of the credit union so that needs Customs Union so that needs to be upgraded. But our real concern is on the roll on roll off sector. At the moment lorries turn up at the ferry ports and go on board the ferries and come across and on to the road network whether it be the uk or europe. Any barrier through a ha rd uk or europe. Any barrier through a Hard Customs Board Are will be catastrophic in terms of the ports and the Business Model and the Ferry Companies as well because you know every small delay, the lorry getting through is going to, Operation Stack will be a permanent feature on the m20. Operation stack being a road in the uk which was standing for miles, lorries stuck, not able to move across through to france. Just explain the Daily Movement at dover, just on its own. 10500 vehicles . M is 8,000 vehicles in total. It does peak. In november it was over 10,000. It is 7,000 eu vehicles and 500 non eu vehicles and thats where our concern is. On 500 non eu vehicles and thats where our concern is. On average 500 non eu vehicles and thats where our concern is. On average it takes about 20 minutes to clear to the customs. Things can be improved and things can be made more efficient, but either so any day with 8,000 vehicles passing through will be really difficult for the ports and for the Ferry Companies to manage. The physical constraints. But they have to find a way to manage. The physical constraints. But they have to find a way to managelj the physical constraints. But they have to find a way to manage. I find it very difficult to see how thats going to happen other than whats going to happen other than whats going to be a massive disruption to trade and if you think about it, it is just trade and if you think about it, it isjust in time. Trade and if you think about it, it is just in time. Youve got tomatoes coming up from spain. You put delays there and youve got, you put the whole just in there and youve got, you put the wholejust in time there and youve got, you put the whole just in time sort of Business Model injeopardy. Gosh, its really interesting. Guy, thank you for coming in. Guy platten the Chief Executive of the uk chamber of shipping. In a moment well take a look through the business pages but first heres a quick reminder of how to get in touch with us. The Business Live page is where you can stay ahead of all the days breaking Business News. Well keep you up to date with all the latest details, with insight and analysis from the bbcs team of editors right around the world. And we want to hear from you, too. Get involved on the bbc Business Live web page bbc. Com business. On twitter, we are at bbcbusiness and you can find us on facebook at bbc Business News. Business live on tv and online, whenever you need to know. And you have been in touch today which is great. We asked you the question what surprises have you seen, received, or paid forfrom a haventing machine . The bbcs dominic 0connell is with us. First of all, explain what is on offer in singapore . Super cars not little ones . Not little toys, but full sized super cars. If youre a billionaire that fancies add to go the stable, you push a button and a couple of minutes a car is delivered and you can take it for a drive and buy it. Its not really a Vending Machine, but it is like a stack of cars, it is a novel way of selling things. Im just wondering about how you things. Im just wondering about how yu pay things. Im just wondering about how you pay for it . Not with notes. You put in the pin number and hope that its approved. Something like that. A viewer from leeds said the best thing he got from a Vending Machine is a hot kebab best thing he got from a Vending Machine is a hot kebab i once saw Eggsin Machine is a hot kebab i once saw Eggs Ina Machine is a hot kebab i once saw eggs in a Vending Machine injapan. Japan has got everything in Vending Machines. Lets not mention what you can get there. Dominic have you had any surprise snz in japan, everything. And on every street corner. They are almost everywhere you walk along, Vending Machines are there selling just about everything you require really. There you have it. Lets talk aboutjp morgan. It. Lets talk about jp morgan. Its pa rt of lets talk about jp morgan. Its part of the Trickle Ofjobs out of the city. Theyre convinced theyre not going to be able to hold Obto Passporting Rights so theyre moving to other european capitals so they can keep their clients inside the European Union once we leave. Whats going on in their thinking when it comes to where . It depends on the institution. There are all sorts of factors at play. We havent seen any particular things about tax. Everyone thought it would be tax deals. Ireland does have a low rate of corporate taxment it is a low tax environment. It depends, it seems to depend on where they have been established before, Property Costs and just the individual circumstances, jp morgan for example was big in dublin and it is getting bigger. Frankfurt, we have seen a similarthing. Bigger. Frankfurt, we have seen a similar thing. The banks moving to frankfurt have been there before. Brussels lured lloyds of londons headquarters which nobody thought would happen. It hasnt quite played out the way we expected. Thanks, dominic. Good to see you. Thats it from Business Live today. There will be more Business News throughout the day on the bbc. See you soon. Bye bye. Hello there. That exceptionally mild start to the day up and down the country. A lot of cloud around too and also some rain. You can see on the Rainfall Radar where most of it is across the South West Of England pushing into wales. This will continue to feed north and eastwards in towards Northern England and the midlands as the day wears on. Some dry weather to the south east and also to the north west once a band of Showers Moves through. By around the middle part of the afternoon it will be clearing eastern parts of scotland. So we should see a good deal of sunshine for Northern Ireland and sunshine in towards Scotla Nd Ireland and sunshine in towards scotland too and temperature wise lower into the afternoon than what we started off with this morning. For much of Northern England and towards wales, the South West Of England and the midlands will remain murky, hill fog and outbreaks of rain. Some moderate pulses mixed in, but generally light and patchy, but not as muggy as it will feel across the south east. Here with sunny spells we could be seeing temperatures 23 to 25 celsius. This evening and overnight, it stays cloudy for much of england and wales. Further pulses of rain at times. Misty, murky conditions. Mild here. Double figure values, but for scotla nd here. Double figure values, but for scotland and Northern Ireland with clear skies, it will feel fresher tonight than what it has been the last few nights. Wednesday, we have got this Weather Front which will bring further cloud and rain to much of england and wales, whereas for scotla nd of england and wales, whereas for scotland and Northern Ireland, clearer skies with sunshine. Just one or two showers across western areas. For england and wales though, it will be cloudy. Further pulses of rain. Some of it pepping up to be heavy across the midlands and towards the south east towards the end of the day. The skies begin to brighten for Northern England and western wales. Another warm, muggy day despite the cloud across the south east. Temperatures around the mid teens celsius further north and wednesday. Wednesday evening and overnight, we could see Thundery Bursts Of Rain Towards East Anglia and the south east as the Weather Front continues to push off towards the north sea. Thursday, we lose the muqqy the north sea. Thursday, we lose the muggy airand the north sea. Thursday, we lose the muggy air and the rain from the south east and were into fresher air across the board. North westerly Winds Feeding in across the board. There will be sunshine in between and temperatures down a notch across the board. Towards and temperatures down a notch across the boa rd. Towards friday and temperatures down a notch across the board. Towards friday and the weekend, it will feel a touch fresher with sunshine and showers, some of which will be heavy. Welcome to the programme. The top story, Moors Murderer Ian Brady has died. Along with his girlfriend, myra hindley, he killed the nineteen laiii; iii,ilii,t;lt;t;iii, m just destroy five gave in; families for more that they gave the families for more than 50 years, destroyed all of the families as well, even to this day. Relatives say his death does not end their nightmare. We will speak to some of those who have met ian brady. Also, the 16 year olds and 17 year olds who are trying to make sure you turn out to vote, even though they are too young to do the Centuryjeremy Corbyn or theresa

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