Transcripts For BBCNEWS BBC Business Live 20180207 : compare

BBCNEWS BBC Business Live February 7, 2018

Could do with de stressing. And well be getting the inside track on the business of stress busting stock market traders could do with a bit of that this week. But for many of us, hectic modern life means we all need a some help to destress. Our next guest says he has the answer in a bottle. Today we want to know the billionaires space race elonmusk celebrates a successful launch of his new rocket if you were given the chance, would you go to space . Just use the hashtag bbcbizlive. I think some days salary would happily send me to space. Send your comments in sally would happily. I know we say this a lot, but were at another crucial stage of the brexit negotiations. Senior uk ministers begin a two day meeting later to thrash out the governments position on what relationship the uk will have with the eu after it leaves in march 2019. Business bosses have already warned the Prime Minister about the lack of clarity and the damage they say its doing to business. The british chambers of commerce has accused theresa may of continued ambiguity. The eus brexit negotiator urged mrs mays government to clarify its position. Michael barnier said without a Customs Union and outside the single market, barriers to trade are inevitable. One vital sector that wants clarity is services. It accounts for 45 of the uks total exports, in everything from financial services, it, design, tourism, education, accountancy and law. It makes britain the worlds second largest exporter after the us. And recruiters are nervous, too. The number of london Jobs Available in december fell a dramatic 52 month on month, a far bigger drop than the same month in previous years, according to morgan mckinley. Anastassia beliakova is head of trade policy from the british chambers of commerce. We outline some issues that you as an organisation had of this open letter to theresa may and her government. You are asking for a united party to deliver clarity, easier said than done. We know the political environment is challenging and businesses are unaware of the complexity of the negotiations but government needs to be mindful that business has been very patient in phase one of the negotiations. As we are about to enter the second stage, we still dont know what the uk government wants to do. That is having a real effect on business sentiment, which means businesses are holding off on some investment decisions. This 11 member brexit subcommittee that is meeting today and tomorrow in intensive talks, led by theresa may, includes the likes of philip hammond, the chancellor, amber rudd, the home secretary, michael gove and boris johnson. Amber rudd, the home secretary, michael gove and borisjohnson. You can see the clear decisions. What expectations have you got that we should get some clarity this week . Many will be saying it will be more confusion, but more fudge coming out of this meeting perhaps. That would be very disappointing for businesses. We have seen ambiguity continuously over the last few months. Businesses want to know what kinds of practical questions will be addressed in the next stage of the negotiations and what kind of assurances can government give to them. Rhetoric is no longer enough. It is important to address questions such as what kind of Customs Declarations businesses will have to make, what kinds of arrangements will services have in the future relationship with the eu . And what exactly will happen to the existing trade agreements we are party to, will we still have the same benefits . When it comes to a trade agreement, what do our members are as divided as the rest of the country, we represent 75,000 businesses of all shapes and sizes. They are united on the fact that the uk government has taken too much time in outlining its position. It has a responsibility with regards to its own citizens and businesses and we really need to hear a much stronger statement of intent from the Prime Minister and her cabinet. Thank you for coming in. The Cabinet Meeting is underway today and tomorrow and we will keep you up to date. There is a press conference being held by mike pence, us Vice President in tokyo, meeting with shinzo abe, the japanese Prime Minister. He is largely talking about the concerns over north korea, lets have a quick listen. In the past, the United States, japan and freedom loving nations across the globe responded to pyongyangs actions with failed diplomacy. The result of which has been a cycle of broken promises. Wilful deception. And escalating provocations. But the era of strategic patience is over. The truth is, in 1994, the kim regime committed to freeze its plutonium programme, only to continue making progress. In 2005, as we discussed today, it promised to dismantle its nuclear programme. But north korea only accelerated. 0ver over the years, north korea has, as the president has said, repeatedly supported acts of international terrorism, including assassinations on foreign soil. As the regime even secretly helped syria will do a Nuclear Reactor in the mid 2000s. In the indo pacific, north korea has continued to develop and test ballistic and nuclear weapons. Last year, within less than 30 days, the regime launched two missiles over japanese territory. And conducted yet another nuclear test in the same period of time. This week, as the world knows, north korea is sending a delegation to participate in the Winter Olympics. They will march under the same banner as south korea. But we should not forget that north korea south korea have marched under the same banner before. The world witnessed it at the 0lympics the world witnessed it at the olympics in 2000 and in 2004. In the Winter Olympics in 2006. Only to see north korea continue its pursuit of threats and provocations. In fact, north korea tested its First Nuclear weapons only eight months after the conclusion of the 2006 winter 0lympics. Later this week, conclusion of the 2006 winter 0lympics. Laterthis week, i conclusion of the 2006 winter 0lympics. Later this week, i will have the privilege to lead the United States delegation to the Winter Olympics. We will be there to cheer on our american athletes. But we will also be there to stand with our allies. And remind the world that north korea is the most tyrannical and oppressive regime on the planet. Ill bejoined by the father of a promising young man who was imprisoned and tortured in north korea only to pass away shortly after his release. As President Trump has said, we will honour 0ttos memory with resolve. We will not allow north korea propaganda to derail the olympic games. We will not allow north korea to hide behind the reality that they enslave their people and threatened the wider region. As we discussed, mr Prime Minister, today, the American People and the people of japan and freedom loving people everywhere along for the day when peace and prosperity replace pyongyangs belligerence. But we will not repeat the mistakes of the past. As President Trump has said, past experience has taught us that complacency and concession only invite aggression and provocation. Vigilance and resolve will be our lode star. All options are on the table. And the United States has deployed some of our most advanced military assets to japan and the wider region to protect our homeland and allies. Studio Vice President mike pence in tokyo talking with Prime Minister of japan shinzo mike pence in tokyo talking with Prime Minister ofjapan shinzo abe. Lflge 55145515 snsgg; smse gee you heard, he is striking a as you heard, he is striking a warning about the relationship with north korea ahead of the Winter Olympics that get underway on friday in south korea. He continues his tour of the area ahead of the beginning of the Winter Olympics at the end of the week. We will stay right across that and if there is anything else of interest we will bring it to you. Lets take a look at some of the other stories making the news. A roller coaster day yesterday but more calm today. Injapan in the kay was up 3 after falling almost 7 in the session but it ended pretty flat. Lets head to our Asia Business hub for the latest, where Karishma Vaswani has been tracking the markets for us. An easier day today but still, i would imagine that traders are remaining on edge for the time being . Absolutely. The anxiety that we saw in asian markets yesterday has abated somewhat today but it was a mixed session. Volatility has come into both the us markets and in asia. Thats not going away any time soon. If you think about it, it makes total sense. In the United States there is this anticipation that Interest Rates are going to be rising at a faster rate than many people had expected. That results in the fact that money gets pulled out riskier assets. One of those risky assets has been emerging market equities. Many markets in asia have benefited foreign funds flowing in over the last seven or eight years from places like the United States. Over the last couple days, there has been anxiety about the fact that that money might have been pulled out and what that will result in in terms of share price volatility over the coming days. You will stay across that for us as that volatility potentially continues. Thank you. Joining us is mike bell, Global Market strategist, atjp morgan asset management. You were talking a lot to clients yesterday in the midst of this. You said, would return. Have you been vindicated this morning . That he said that calm would return. The key thing is that friday people worried about wage growth coming back. Higher wage growth you would think is good for the economy but whatever you everyone is concerned about is that the central bank in the us will slam the brakes on and cause markets to come to a juddering halt. Wage growth is slowly going to pick up. But a lot of the pick up was caused by the distortion in weather data because some people werent working because some people werent working because of the storms we saw in the us. As a result, we will see some Central Banks tightening but realistically we will probably only get four rate rises from the fed this year, probably not enough to slow the us economy. Earnings for us companies are being revised up rather than down, that is why some calm is returning to markets. The word we heard so much yesterday, correction, not a collapse. But the question is how much of a correction needs to be made to markets . Because they have potentially been overvalued for so long. The important thing to know, on average, over the last 30 years, the uk stock market falls from peak to trough every year by an average of 12 . Most yea rs every year by an average of 12 . Most years it still ends up. 10 12 pull back is entirely normal. What was abnormal was that last year we saw lots of markets head strongly upwards but with little pull back. These kind of pull backs are com pletely these kind of pull backs are completely normal. Somewhat healthy for markets. The fundamental Economic Data matters, that is still healthy. It is at the moment. How long do you think it will be healthy for . This was the discussion of the World Economic forum. We are in a sweet spot for the global commie but it might not last long. We think at least for the rest of this year the Growth Outlook should look strong. The business surveys have historically been a good guide as to what will happen in the economy and around the world, in the us in particular but also in europe, they are telling you that growth is booming, slightly less in the uk but in europe and the us growth looks very good. It is hard to predict much further into the future than that but it looks good will stop thank you. Still to come. The business of stress busting. If any investors put their money in that, market for things to de stress. We speak to a boss of a company who says he has bottled the answer. We have heard this before but apparently this is the one. The government is to give so called gig economy workers new rights including holiday and sick pay for the first time. Its in answer to last years taylor review which recommended changes in conditions to reflect modern working practices. Our business correspondent, theo leggett has been looking at the details. Reminders about the taylor review. Remind us. Reminders about the taylor review. Remind us. It was set up to look at how Business Practices have changed over the last few years and how the government should respond to that in terms of Employment Law and the enforcement of Employment Law. It noted there are trends to Companies Like uber and deliver real, people who employ people by thejob. Real, people who employ people by the job. There is an increasing reliance on Agency Workers and people and zero hours contracts, people and zero hours contracts, people who are not guaranteed hours of work but do have a contract with an employer. Mr taylors conclusion was this does allow flexibility in the workplace, useful for employees and employers, but things were weighted too much in favour of the employers. He set out a number of recommendations to make life better for the employees, most of which the government has now taken up. What are they proposing here . It is pretty widespread, the proposals, that will affect so many people in this so called gig economy . that will affect so many people in this socalled gig economy . A set of widespread proposals but the actual changes are not that great. What the government is planning to do on holiday and sick pay, for example, is to enforce the existing rules better. A lot of people who work in the gig economy who are entitled to holiday and sick pates dont actually know that they are entitled to it. Under these proposals, they will be informed on day one what their rights were. Hmrc would then try harder to enforce those rules, to make sure people who were entitled to holiday and sick pay get what they are entitled to. It is the same with the use of unpaid interns, that has been a controversial point. Employers are not supposed to use unpaid interns to do the job of a paid worker. In this review there will be increased enforcement of that rule and increase penalties for employers who disregard that. Good stuff, thank you for explaining that. It is pretty complicated but those proposals in force. Not eve ryo ne those proposals in force. Not everyone is happy, the union say there is still a whole load of workers who are not being protected by those proposals. More details on our website. Youre watching business live our top story Business Leaders in the uk are demanding more clarity about britains position when it comes to brexit. The Prime Minister, of course, is meeting with senior ministers in her cabinet to try and thrash out the uks position. Markets will be looking closely at that and also recovering after a pretty volatile session yesterday, sparked by that sell off on wall street. Some markets bouncing back from the falls we saw earlier in the week. Tesco is facing britains largest equal pay law suit which could affect up to 200,000 mostly female shop floor workers, who say theyre paid less than men who work in the companys warehouses. Lawyers suggest tesco could be liable for up to £4 billion in back pay if it loses. Our economics editor, kamal ahmed, has more. You have been looking at this, this is fascinating because there are a number of firms caught up in this equal pay row. Yes, plenty of equal pay claims in the uk, which is paying men and women the same for the samejobs. Paying men and women the same for the same jobs. This paying men and women the same for the samejobs. This is paying men and women the same for the same jobs. This is a slightly different issue. It is about, can businesses pay men and men different rates for doing differentjobs, even though their value is the same . This is the shop workers in tesco, in comparison to men who work in the warehouse. Most of the people who work in the shops tend to be women and they are paid less than men. Tesco says it is an equal opportunities employer, that it ta kes opportunities employer, that it takes gender equality very seriously and is seen generally as a big employer. It is britains biggest private employer. For many businesses around the world, there has been this division between what is seen as womens work, in a rather Old Fashioned way, is seen as womens work, in a rather Old Fashioned way, catering, cleaning, shop workers, being paid less tha n cleaning, shop workers, being paid less than what is traditionally seen as mens work, lorry driving, loading in warehouses, bin collection. As we are in the 21st century, should those kinds ofjobs be seen as equal in value . century, should those kinds ofjobs be seen as equal in value . I am sure Business Leaders all over will be watching this very closely, to see how this plays out, what the conclusions are, because it could have huge implications for Many Companies and businesses around the world . Companies and businesses around the world . Absolutely. In britain, although this is the tesco story today, big retailers in britain like sainsburys and asda have been facing similar claims. Big city council in the uk, birmingham, britains second city, had to pay out £1 billion when they agreed that they should pay more mone

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