tv BBC Business Live BBC News September 26, 2017 8:30am-9:01am BST
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this is business live from bbc news with ben bland and rachel horne. flying into a trade storm — boeing and bombardier go head to head in a dispute that leaves jobs in the us, us and canada on the line. —— the us, -- the us, uk, —— the us, uk, and canada on the line. live from london, that's our top story on tuesday the 26th of september. a us court prepares to rule on a plane row between america's boeing and canada's bombardier. we'll explain why it matters. also in the programme — whatsapp gets blocked again in china in the biggest clamp—down so far on the encrypted chat app. this is how the european markets look at the start of the trading day. all of them opening just a shade lower, rachel? and just another sign of the times — we'll be getting the inside track on the company that's looking to revolutionise the way
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we sign documents. fancy owning marti mcfly‘s trainers or indiana jones bullwhip — well both are up for auction today along with a load of other movie memorabilia. so what bit of movie history would you most like to own? and how much would you pay for it? let us know — just use the hashtag bbcbizlive. plenty up for grabs. maybe something from jurassic park, a t rex for the garden! welcome to business live. a us trade court will rule today on a major case that could have big impactions forjobs in the us, canada and the uk. the american aviation giant boeing had alleged that its canadian rival bombardier had engaged in "price dumping". in 2016, bombardier won its biggest ever order to provide its c—series passenger plane to delta, a major us airline. boeing alleges that bombardier sold those 75 planes to delta for almost $14 million below their cost price —
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something they allege is possible because of subsidies from governments of canada and the uk. in a statement, bombardier said that "boeing says it wants a level playing field, but it is not even on the field," uk prime minister theresa may is concerned because bombardier employs 4,500 staff at a factory in belfast, northern ireland. and her government is now propped up by votes from northern ireland's democratic unionist party. our business editor simonjack is in belfast. simon, what are we expecting to hear today? the fear is that the department of commerce in the us will rule that boeing have a point, that bombard your salt these plains below cost
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value, and may impose some punitive ta riffs value, and may impose some punitive tariffs on those when they sell them into the us market. —— that bombardier sold these aircraft below cost value. bombardier is the biggest employer by far, it employs 4000 people. 20% of those staff work on the wings. any additional tariffs which hit their competitiveness would go down very badly. this is a preliminary ruling people are faring. there will be another ruling in february. if they rule against bombardier it would cast a cloud over international relations. when plane makers go to war politicians get involved. the upfront cost of developing new planes means that subsidies are pretty widespread, and thatis subsidies are pretty widespread, and that is what bombardier are saying.
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they are not disputing there was a discount, but that is normal when you are doing the launch of a new aircraft. in fact, you are doing the launch of a new aircraft. infact, boeing you are doing the launch of a new aircraft. in fact, boeing did the same with their 77. they say they are being hypocritical. —— with their 787. 0n the import those planes to the us, can we see anything happening as a consequence on boeing aircraft? there tit—for—tat trade disputes all over the world. you will have reported on boeing's spat with ayr boss, which share the aircraft business about 50—50. —— airbus, which share the aircraft business about 50—50. the uk government have got involved because they rely on boats in northern ireland. especially with the involvement with the dup. they have some reliance on
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those voters. but 16,500 people work in the supply chain for boeing in the uk. if it isjobs you are worried about —— worrying about, just remember how many we have in the uk. add to that, the canadian government is threatening to cancel an orderfor government is threatening to cancel an order for military aircraft from boeing. these things get complicated. when you are picking sides in a spat like this, picking your site isn't straightforward. is there a sense that enough is being done to protect those jobs is there a sense that enough is being done to protect thosejobs in northern ireland, are people feeling nervous? it's interesting. because the uk government relies on the dup here it has been very active in trying to resolve this dispute. the prime minister raised the issue with donald trump when she saw him last week at the un general assembly. the
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business minister, like clark, has made a couple of trips to boeing. —— greg clark. normally he does this work behind closed doors. but the uk government is keen to show its partners in the dup that it is doing everything it can. but at the moment we are expecting this initial ruling, it is widely expected to go against, that is at the end of the story because it would mean first blood to boeing if we get this ruling in this you. -- if ruling in this you. —— if we get this ruling today. let's take a look at some of the other stories making the news. alibaba is investing more than $800 million in the loss—making cainiao logistics platform — which will give it a controlling stake in the firm. the chinese e—commerce giant says the move would help it achieve 24 hour delivery in china and in 72 hour delivery to the rest of the world. the uk's prime minister will meet the european council president donald tusk in downing street later today. it's their first meeting since theresa may set out plans for a two—year transition
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period following brexit. it comes a month before the council will decide whether sufficient progress has been made to begin trade talks. the biggest diamond to be found in more than 100 years has finally been sold for $53 million. the stone which was found in botswana two years was sold by the mining company lucara to the british diamond dealer graff‘s. it is called "lesedi la rona" which means "0ur light". last year it failed to sell at an auction. china appears to have again increased the restrictions it places on the instant messaging service whatsapp in what appears to be the biggest clamp—down so far. robin brant is in shanghai for us. how significant is this? it is significant because what's —— because whatsapp is owned by
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facebook and it doesn't subscribe to the swathes of censorship rules and restrictions the chinese government has put on the app which dominates here. what we are seeing, we would appear, is the regulator is using technology to restrict for now people's ability to use whatsapp. it has been intermittent. 0n people's ability to use whatsapp. it has been intermittent. on my phone this morning i have been able to make video calls and audio calls and send text messages to people in china and outside china. the problem comes when you want to send pictures, a voice message or moving video. there are issues there. a couple of months ago we had restrictions put in place on the use of video and pictures and it appears to be that which remains in place. if you have a virtual private network that is a way to get around the restrictions. you can use the
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application today. but instead of using it like a normal person on your phone there are clearly problems. many thanks. asian markets moved lower and safe—haven assets rallied as tensions between the us and north korea flared up again. gold was up and the japanese yen recovered recent losses against the dollar. a slightly cautious mood on wall street in monday trading. the main indices moving lower. later on tuesday, federal reserve chairjanet yellen is scheduled to give a speech. investors will watch closely for any clues about whether the us central bank will stick to its plan to raise interest rates in december. also — for details on plans to reduce its balance sheet and sell the government bonds it holds. the european markets are all slightly down in morning trading so far. the euro was on the back foot after the german elections — and after european central bank boss mario draghi aired concerns
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about the euro‘s recent strength. he hinted that policymakers could keep monetary stimulus for some time as the eurozone economy recovers. crude oil prices gave back some of their gains after soaring more than 3% on monday, with brent hitting its highest in more than two years. and here are the details about what's ahead on wall street today. night will be reporting earnings on tuesday, the world's largest sporting make is feeling the heat from rivals like adidas and puma. —— nike will be reporting earnings. also hurting them is the lessening of demand for retro wear. investors will be interested in hearing from the company on its forecast for the rest of the year. also reporting earnings on tuesday is the cruise operator carnival. geopolitical issues will weigh heavily on the company's earnings for this quarter. demand and its biggest markets are coming under threat after the decline of tourism
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in the mediterranean and the effects of hurricanes in the caribbean. tensions in the korean peninsula are expected to hurt demand in the chinese market. joining us is james hughes — chief market analyst at gkfx. thank you for coming in this morning. i want to talk about oil first. it is hitting a two year high, why is that? we have had this deal with 0pec and non—0pec members to cut production. that has been rumbling under the surface of 40 while. the criticism has been, has it or has it not been working. —— under the surface for a while. we are seeing the price rise. but it hasn't really started to rise until we saw this tension with north korea. any hint of conflict, any rhetoric between countries that gets frosty does often drive the price of oil higher. the compliance to those deals, the 0pec deals, is quite
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high, we are talking above 70%. meaning a lot of the countries are doing what they are supposed to do is that usual, the compliance? no. normally they make a deal but then they pump the same amount anyway. if you add the fact that compliance is high, to the issue with north korea, this is why you get this oil price steadily go higher. we have seen a jump steadily go higher. we have seen a jump and four before, but this is steadily moving in the right direction. that is what they want from this deal. —— jump and fall before. social media companies are sinking, any reason for this? the apple story is interesting because of the recent launch of their new devices. sales of the iphone8 have not been that great and the iphonex
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is deemed too expensive. there are fears around the stocks. the likes of netflix, and everything in that tech space, a lot of their values continuously go higher. like netflix, they spend a lot of money pumping and other countries. their subscriptions go up and they don't make much in the way of profit but the share price keeps going incredibly higher. uber, same thing, their valley goes high even though they get lots of bad press. when that starts to happen you have to worry about the fact, are we seeing the stocks go higherjust for the sake of it? is there any real value in it? there is at the moment but it sta rts in it? there is at the moment but it starts to make you think. are you into movie memorabilia? yes. when you come back we want to know what you come back we want to know what you would buy and why because we are talking about movie auctions. wonderful. still to come: signing up to new technology, we speak to the firm taking signatures digital. you're with business live from bbc news. the competition on markets authority
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is investigating a price comparison site over allegations it helped push up site over allegations it helped push up prices of home insurance. the investigation was announced at the end of a year—long examination into the sector. andrew walker is in our newsroom. do we know which firm it is and what the concerns were? we don't know which particular website it is the cma is worried about. we do know that the particular sect involved is home insurance. and the specific concern is about the contractual relationship between the suppliers and the website. in particular, a provision in the contract which prevented suppliers from offering cheaper prices on other comparison websites. the cna
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is worried that this might lead to consumers paying higher prices, ultimately. it is the kind of contractual provision not uncommon in the sector but the cma wants to have a close look at this particular website, whichever one it is, to see what the impact is ultimately on consumers. this is one result of a wider investigation into price comparison websites, what are the general conclusions it is favourable. 90% of consumers who use the sites find the experience helpful and certainly the authority itself reckoned they can be useful in making it easy for scunlers to shop around and in ultimately in getting the best price. there is some difference in different sectors. it works, they say, especially well in car insurance. well, it is very well established. less well in broadband where there are particular problems,
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not so much about the pricing, but about the quality information in particular, it's difficult for the websites to get hold of reliable information on actual broadband speeds. so, inevitably the comparison price is more difficult to negotiate reliably and they reckon more generally the sector could make some improvements and they have come up with detailed principles about how they could operate to make it a better experience for consumers. andrew, many thanks, indeed. andrew walker there in our business newsroom. there is a story about thomas cook predicting that spanish holiday prices are set to rise by 5% to 10% because of the weak pound and increased popularity for spain as a destination. you're watching business live. our top story: aus
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a us court is expected to rule on boeing and airbus a quick look at how markets are faring. today. a quick look at how the markets are faring. everyone looking to janet yelland the chair of the federal reserve giving a speech later. looking for any clues about plans to increase us interest rates. and now let's get the inside track on signatures. since the beginning of time putting your signature on a piece of paper has had the ability to create a legally binding document. then came the internet and with it electronic communication, and paper was regarded an anachronism but how do you make a digital document legally binding? the solution was the e—signature and one of its pioneers was a company called docusign. their software allows more than 300,000 companies and 200 million users in 188 countries send, sign and manage agreements digitally. but what about the legality of signing documents this way?
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sally bundock started by asking chief executive dan springerjust how legal the process actually is. so, digital signatures in the united states first became legal, it was about 2000 when president clinton was in office and they're legally binding and then each country has different legal structures so there is civil law and common—law, but in the united kingdom there are legal signatures as well. trustworthiness, authenticity must be key to your business because presumably anybody could sign any document in their home, their office and you wouldn't know if it was the right person or not? the signatures are more secure and binding electronically because if you do a paper signature, we are not sure who it was that was there, but if you think about a signature online we keep track of the ip address. we know that an e—mail was sent to you in order for you to create a docusign signature so we can do
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second party authentication metrics and you can become stronger authentication through the internet than you can in person in many ways. and the issue of trust was really challenged, wasn't it earlier this year? you had a data breach at docusign. how damaging has that been? we actually had a data breach not to our core systems, none of the docusign core systems have ever been breached in anyway. some of our marketing systems were breached which created an opportunity for people to get e—mail addresses and so that can lead to phishing campaigns and you have probably experienced that yourself, there is a lot of situations where people get e—mail addresses from folks and e—mails sent to your addresses for phishing campaigns to try and gather other information. fortunately, most of our customers have very good security protocols in place and those phishing campaigns get stopped by their firewall. in recent months there has been talk that as a company you want to go to market.
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you want to go for an initial public offering. what's the latest on that? docusign is clearly a company that's able to be a public company. we are not talking about specific timing at that point, but something we're looking forward to in the future. you have got offices in the uk and in europe as well as other places in the world, of course, the united states, but for you, as a company, what does brexit mean if anything? we haven't seen yet sort of a sense of significant issues. i think the one area that i'm particularly focussed on there is a lot of eu—wide legislation coming up and i think those things might end up being different in the uk now with brexit so it might require us to do things a little bit different, but so far we haven't seen a sense that there will be a lot of impact on our business. you're quite new to this position. you started as the boss of docusign in january of this year. you ran other companies in the past, but prior to january, you took three years out to raise your boys. tell us more about that. well, that was the best business decision i ever made. it was an opportunity for me to get even closer and it was in their teenage years before heading off to university and it was an experience i really appreciate and i'll cherish.
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james hughes is here. national grid can tell us when it use the washing machine. a lot of this is energy companies and national grid one side, but they want energy companies to do this as well, but it is telling consumers when is the cheapest time number one for them to use their electricity. and of course, the most energy—saving time. they don't want people to over load the systems and overload the grid and they want them to be used at their most economical and that helps consumers from a point of view in terms of the money in their pocket and that's one of the key points about this, i think, is the fact
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that they want energy companies to follow suit. they have developed the softwa re follow suit. they have developed the software that tells you when is the most effective time for you to use your washing machine or put your dishwasher on or whatever it maybe and that's one of the key points behind it. and was whether people will do it is the other side? it is nothing new. years ago we used to be told when was the cheapest time to put on your storage heater or to use the telephone. my dad would always say if you want to use the phone wait until after 7pm and then you can do it. look, let's face it, anything that's going to increase the amount of money that's in your pocket at the end of the month is going to be a positive thing for anyone. so i think the fact that there is this technology number one isa there is this technology number one is a key thing and within the article it says that the summer of 2017 it was one of the best in terms of green energy and using energy effectively. so, it's a positive story overall and especially if this technology is passed out to consumers for them to obviously help
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amount of money and help the environment at the same time. are you into movie memorabilia? who isn't into movie memorabilia? me. indiana jones items and mart mcfly‘s old trainers. so, the fact that these films get remade, if you could buy some memorabilia of marty mcfly‘s trainers from back to the future. or there is a top gun suit. a lovely christmas gift. what are the prices? for the top gun £20,000 to £30,000. one thing that caught my eye, i would say it is for my kids,
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but mainly me is buddy the elf's costume. we were asking what you would buy at auction and how much you would be willing to pay for it? steve says, "i would love to live in some of the sci—fi sets. can these be bought." another viewer some of the sci—fi sets. can these be bought. " another viewer says some of the sci—fi sets. can these be bought." another viewer says he wa nts be bought." another viewer says he wants the costume from the empire strikes back. you would have competition for that one. are there people who are doing this notjust for the love of the movies, but to make money you used to have the feeling that people who would buy sports memorabilia would be millionaires to put if inn a games room in their house, but people are buying this stuff because the films are being remade and the access to the film, everyone can get it on their phone, the fact is that this stuff can increase in value and with
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interest rates so low there is an argument for people buying these sorts of things and holding on to them and making money out of them and selling them on. what would you buy? i am a big super man fan. it is not the most expensive thing. buy? i am a big super man fan. it is not the most expensive thingm buy? i am a big super man fan. it is not the most expensive thing. it is only eight to ten grand. there is one here, it would be good, the hammerof one here, it would be good, the hammer of thor on your mantelpiece. what about you rachel? i'm not into movie memorabilia. i would like a full—scale roger rabbit standing.” will let it for you, ben. james, thank you very much indeed. nice to see you. that's it from business live. more business news throughout the day on the business live web page. see you soon. bye-bye. good morning. it's another mild
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start toy dat, but —— start to the day. as a result, it is a rather dull start. this is just day. as a result, it is a rather dull start. this isjust one day. as a result, it is a rather dull start. this is just one example ofa dull start. this is just one example of a weather watcher photo from this morning in the hertfordshire. a bit of mist around with lots the cloud, but that cloud will thin and break up but that cloud will thin and break up and there will be sunny spells developing into this afternoon. 0ne or two showers perhaps across eastern parts of england later on as well, but really for most of us, it will stay dry and the best of the sunshine across scotland will be across northern and western areas. it might stay cloudier in the highlands and aberdeenshire. in glasgow, edinburgh, 17 or18 celsius. and with sunshine in northern ireland, not feeling too bad here as well. and across most of england and wales as that cloud breaks, the sunshine comes through. it's going to feel pleasant. the
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temperatures perhaps getting up as high as 20 or 2 #18s in the capital. you notice the showers just dotted around across parts of norfolk, suffolk, lincolnshire and east yorkshire. but as we go through this evening and tonight there will be more cloud developing into wednesday morning and with that again, there will be some mist, one or two fog patches developing and temperatures no lower than 13 to 15 celsius. another mild night to come really. during wednesday, for many eastern areas, the cloud will thin, it will brack up and there will be some sunshine coming through again. but towards the west, is where the cloud is going to thicken up and you will notice rain moving its way into northern ireland and that rain spreads into south—west england and wales. it is associated with this weather front and just notice the white lines there. just becoming more closely packed together. so, a stronger wind developing across the western areas to go with that rain as it moves in on wednesday, but temperatures not doing too bad for the end of september. through, through wednesday night this weather
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front will move its way eastwards. so giving a spell of heavy rain and then we have got a ridge of high pressure before this area of low pressure before this area of low pressure m oves pressure before this area of low pressure moves in. for thursday the rain will clear away interest eastern areas. as it does so, the sun will come out and for most of us on thursday, another dry day with warm and sunny spells developing. the temperatures once again in the high teens and low 20s. more details available online. that's it from me. bye— bye. hello it's tuesday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme our top story today: the latest war of words between north korea and donald trump's america. 0vernight north korea accused washington of declaring war on the country. america called that claim absurd. translation: i will tame him. if north korea does anything like an
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attack on anything we love, anything we represent, our allies, attack on anything we love, anything we represent, ourallies, or us, they can be very nervous. so, what might happen next? also on the programme — 1 in every 100 of us are affected by a condition which leaves them feeling as though they're in a permanent haze or fog, that the world appears in 2d
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