tv Business Briefing BBC News January 19, 2018 5:30am-5:45am GMT
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this is the briefing. i'm david eades. on the brink. the us congress has until midnight to agree a budget deal or see government services shut down. also, abandoning the club. why the business of golf is on a downward swing. as for the markets, asian shares edging up towards record highs once again. that's despite wall street taking a bit of a breather. the stalemate in congress hitting the us dollar. traders weighing up the risk of a government shut down. we start in washington, dc. the us government faces running out of money unless congress
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can agree a budget deal before midnight tonight. a so—called shutdown could see government offices closed, thousands of staff sent home and military personnel unpaid. in the last few hours, the house of representatives has passed a short term bill to fund the government until february 16th. but getting it through the senate is proving much more difficult. so what's the disagreement about? well, here's one major sticking point — the fate of 800,000 so—called dreamers, people who came to the us illegally as children and face the prospect of deportation. democrats are using the budget talks as leverage to try and stop that. then there's the children's healthcare programme, which provides insurance for millions of low income kids. it cost $16.9 billion last year and president trump wants it reformed. so what if congress can't agree? last time the government was forced into a partial shutdown was in 2013. 850,000 staff were sent home, museums and parks were closed
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and services from visa processing to mortgage approvals were disrupted. the potential economic damage is also very real. the 2013 shutdown lasted just 16 days, but knocked a third of a percent off us growth for that year. that's why the us dollar has been falling as the stalemate continues. republican senate majority leader mitch mcconnell has been appealing to his fellow senators to pass the interim funding bill. the bill before us is an opportunity to correct course. a chance for my collea g u es to correct course. a chance for my colleagues to remember that we represent millions and millions. of american citizens. the american people want the federal government open for reference, military families, and the vulnerable. they wa nt families, and the vulnerable. they want food and drug inspections to continue without interruption. they wa nt continue without interruption. they
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want death benefits to continue to go out to families of service members killed in action. they want children in low income families to continue receiving health coverage. they want a sensible compromise on immigration. a sensible compromise. joseph sternberg is from the wall streetjournal. thanks forjoining us. are they going to get a compromise and will they get a deal? i'm a bit sceptical about whether we will have a break in this impasse before the deadline tonight and i think it's because if you look at the senate right now u nfortu nately you look at the senate right now unfortunately the senators are arguing against the deal, especially the democrats in the senate who think they sniff some blood in the water and have an opportunity to try and embarrass republicans as we coming to what will be a congressional election. when president trump said we may have a shut down, he is also suggesting maybe that's a good thing we have a shutdown. he meant that, rather than
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throwing it out there? right. we've had two dynamics that have been unfolding through this process. the first was the republicans in the house where they were starting to look like the game that couldn't shoot straight and that was an embarrassment for the republicans, who controlled boathouse of congress in the white house and yet seemed to struggle to reach a deal they could agree with —— both houses. the news overnight is that they have overcome this problem and now it moves to the senate where there is this issue with the democrats. maybe the republicans are right to try to steer that down. clearly it will be about a blame game, one way or another. but when you look at the reality of what was knocked off american growth last time, this is really damaging. surely there must bea really damaging. surely there must be a sense from within? you've got to find a compromise. you can't let this dragged out. there aren't any
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economic winners from this type of shutdown. but the economy looks different from 2013. there is a greater sense of resilience. so especially if it's a short shutdown, iam more especially if it's a short shutdown, i am more interested in the politics of this than the effect on the gdp growth rate. we should have an a nswer growth rate. we should have an answer $0011 growth rate. we should have an answer soon enough. growth rate. we should have an answer soon enough. thanks very much indeed. let's stay in the us, because tomorrow marks a year since president trump took office. one of his big promises was to bring jobs that have been outsourced to lower cost countries back to america. so is he keeping that promise? to find out more, the bbc‘s yogita limaye has been to the midwestern state of wisconsin, where taiwanese tech giant foxconn is planning a $10 billion investment. the last winter for these fields of corn. by next year farms and homes here will make way for a bustling fa ct here will make way for a bustling fact the re— churning out digital
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displays. if all goes to plan thousands of jobs displays. if all goes to plan thousands ofjobs will be created. in exchange for hefty tax breaks. it isa in exchange for hefty tax breaks. it is a big dealfor a small community. the top story in the local newspaper. and everyone has an opinion. i'm generally for it. i think it will be positive for the area and a lot of general contractors and industries in the area will benefit. but on the flipside we are spending too much money in a quick amount of time. i feel like we've spent more than seems reasonable. we've stepped out of bounds and kind of got pulled into doing this. let's give them anything we want. the taiwanese firm foxconn says 13,000 jobs will be created in wisconsin and it will invest at least $10 billion. but the company will get $3 billion in tax credits. and overall it could cost the government as much as $4.5 billion.
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the deal was announced injuly last year by president trump in the white house. the biggest since he took office. if i didn't get elected he definitely would not be spending $10 billion. the money could transform lives in the two counties. it is people from blue—collar communities and small towns like this one that donald trump managed to convince the vote for him and, while the past has seen a fair amount of announcements from big business, promising to increase investment and create jobs in america, it's not clear yet whether they will deliver and what it will cost the country. so what happens if foxconn's plans fall through, i ask a local official. it's kind of pay—as—you—go. foxconn's incentives are based on the number ofjobs, so if they don't meet that they don't get the incentive. foxconn didn't respond to certain
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questions but says it is committed to creating 13,000 jobs in wisconsin. the state that swung in president trump's favour is hoping it made the right choice. let's talk golf now. president trump is famously a keen player, but it seems fewer of his fellow americans arejoining him on the course these days. in fact, the number playing golf in the us is down around a third over the past decade and a half. it's a trend being seen around the world, with fewer young people taking up the game and the big sportswear firms scaling back or selling their golf businesses. mariko oi is at the singapore open on the island of sentosa. is it explainable? i read somewhere that it's because millennials are not picking up the sport because they can't use a smartphone on the golf course. i'm not sure how accurate that this, but i am at the singapore open, where some of the top golfers are here this weekend.
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as you might be able to see from the branding behind me, this competition is sponsored by a japanese banks, which says it will increase its sponsorship by three years, which is a sign of relief for the organisers because this tournament used to be sponsored by barclays, but when it pulled out in 2012 they couldn't find a sponsor straightaway and the whole event was put on hold. even though this extension of the sponsorship, this great news, the prize money, is now down to $1 million, which is huge money for you andi million, which is huge money for you and i but it is actually down from $6 million that barclays used to offer. so obviously corporations are under huge pressure, whether it's a wise option to keep sponsoring these sporting events. that is a big challenge. thanks very much. lots of golf to work through. let's brief you on some other business stories. a group of investors led by japan's softbank has bought a 17.5% stake in uber in a deal worth $8 billion. softbank will become the taxi app
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firm's biggest shareholder. according to one report, uber co—founder travis kalanick, who stepped down as chief executive injune, sold a third of his stake, making him $1.1; billion. emirates has announced an order for up to 36 airbus a380s, securing the plane's future for a decade. the $16 billion deal is a reprieve for the superjumbo, after airbus threatened to stop making it. the a380 has struggled to match the sales success of boeing's smaller, more efficient dreamliner. now what is trending in business news this morning. from the financial times, emmanuel macron rejects special access for city after brexit. if britain pays and follows eu rules, "be my guest",
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says french president. from cnbc, hsbc to pay $100 million to settle currency rigging investigation. and from forbes, should junk foods be taxed to curb obesity? research says it works. and don't forget, let's us know what you are spotting online. you can use the hashtag bbc—the—briefing. that's it for business briefing this hour. conditions at liverpool prison have been called an "abject failure" in a new report by her majesty's inspectorate of prisons. they've been described as some of the worst inspectors have seen, with concerns over poor living standards, an increase in drones carrying drugs and violence. it comes a month after a bbc investigation uncovered major failings over the provision of healthcare at the prison.
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adina campbell reports. dirty, infested and hazardous. these are conditions hundreds of inmates are conditions hundreds of inmates are facing at liverpool prison. according to a new report by the prison watchdog. as well as problems with rats, broken windows and blocked toilets, it has also found two thirds of inmates had easy access to drugs. often smuggled by the growing use of drones, with more than one seized every week. and the violence had also increased. more than one third of prisoners said they felt unsafe at the time of the inspection. her majesty was a prison and probation service acknowledged the conditions at the prison were unacceptable. it said it is already taking immediate action by appointing a new governor and that cleanliness has also improved. it
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also says it has put a huge amount of energy and money into trying to improve the prison healthcare service them. the inspection took place in september last year, but last month whistleblowers told the bbc that inmates at liverpool prison had died or been injured due to poor care. lancashire care nhs foundation trust apologise for it. today's report comes after the government was ordered to make immediate improvements to nottingham prison over safety concerns. it meant there are believed to have taken their own lives in two years. —— eight men there. this is the briefing. the latest headlines: a couple from california who are accused of abusing their 13 children have pleaded not guilty to
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charges of abuse, torture and false imprisonment. eight people including two macro firefighters have been killed in storm related accidents, as hurricane strength winds terror across northern europe. celebration in new zealand as the prime minister, the world's youngest female leader, announces she's expecting her first child. time now to have a look at the stories making the headlines in media. we begin with politico and us president donald trump who said government shutdown "could happen," as lawmakers continue to scramble to reach a deal to avert it. he also said if it occurs, the fault would lie squarely on democrats. vice's motherboard looks at the world's climate and how 2017 was the second—hottest year on record. the website says 2017 marked the third consecutive year where the temperatures were more than 1 degree celsius above late 19 century levels. china daily leads
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with optimistic news for china's economy, as the countries gdp rose by 6.9% last year, reversing a downward trend for the first time since 2010. the guardian financial pages report the a380 super—jumbo has been thrown a lifeline by its biggest arline customer, emirates, who agreed to buy up to 36 more planes from airbus. and, finally, on front of the telegraph, uk foreign secretary borisjohnson has suggested to french president emanuel macron that a new bridge should be built between britain and france. he said it was "ridiculous" that two of the world's biggest economies were "linked by a single railway". mr macron reportedly replied "i agree.
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