this is business live from bbc news with samantha simmonds and vishala sri—pathma. today the british finance minister, phillip hammond, is set to give a crucial speech on the future of the uk economy. live from london, that's our top story on thursday 21st june. phillip hammond takes to the operating theatre! with brexit looming ever closer, the uk finance minister is faced with some tough challenges in order to boost spending on healthcare. also in the programme... a test of india's mettle! the country raises its taxes on us goods in retaliation to washington's tariffs on steel — we'll cross live to delhi for the latest. and the markets, a mixed board, but fairly even so far in europe. driving change in

the motoring industry! we'll be speaking to the female boss of citroen about the company's plans for cleaner, smarter cars. and following instagram's announcement that it'll start allowing users to post 60 minute videos, today we want to know whether you'll be tuning in? will you stop using other video platforms or is 60 minutes just too long? let us know. just use the hashtag bbcbizlive. hello and welcome to business live. we start in the city of london, where this evening britain's finance minister — chancellor of the exchequer philip hammond — will address top bankers at the annual mansion house dinner. he'll be trying to convince them that london can remain a ‘global capital of finance‘ after the uk leaves the european union. and he will confirm he's sticking to plans to balance the government's finances by 2020 — despite growing concerns about the state of the uk economy. uk interest rates

are just half a per cent — barely above their level after the financial crisis. and they are expected to stay there when the bank of england meets later today. that's because britain's economic growth rate slumped to just 0.1% in the first three months of the year, its worst quarterly gdp figures for five years. on top of this, uk financial firms — the biggest sector of the economy — are increasingly worried about their status post—brexit. they fear they will lose so—called "passporting rights" — which let them provide financial services across the eu. the bbc‘s business editor kamal ahmed joins me now to discuss this. so spread sheet phil will make this important speech. he is very keen on eliminating the deficit. how is he going do that? he has a few

challenges. the prime minister of the uk pledged to increase spending on health care substantially. the chancellor tonight will say that to do that they will need to raise taxes. but the mansion house speech is about more than that. it is also about financial services, the city of london, what will london look like after the uk leaves the eu. he will want to say a lot about that. but on the economy, the british government has pledged to balance the books by the middle of the next decade. the chancellor is committed to that and so if there is going to be any extra spending, it is going to be tax rises that are going to bring that. that brings a headache for the treasury, because the next financial announcement on taxes won't be until the autumn, in the autumn budget and that means from now until then, there will be lots of speculation about what those tax rises will look like. you mentioned

about financial centre here in london preserving that important to the chancellor, what do you think companies across the city are going to be looking out for and what assurance, they're to be looking out for and what assurance, they‘ re keen to be looking out for and what assurance, they're keen on passporting rights. what else? he will talk about the new technologies that are building new types of banking models and new ways of making payment. he said london is the heart of that technology. i think the people who are looking for certainty around brexit won't hear very much tonight. that is very much a process that is being driven by other departments in the uk government. the audience will be made up of bankers. there is a great deal of concern about the lack of clarity around the type of relationship the uk will have with europe after britain leaves the eu. i'm not sure that philip hammond will be able to do much more on that

tonight, despite the fact he might like to. there still needs to be details of deal between the eu and britain once we have left the eu. the city wants reassurance and certainty and a lot of banks are planning for the future. without the certainty, they cannot do that. we haven't seen a mass exodus from the financial sector have we? that is right. over the medium term, most of the estimates are there will be up to 75,000 of the million people employed in financial services. but what you have seen is a slow move. people have had to move legal entities on to the eu out of britain. each of those is maybe a few tens or hundreds ofjobs. the big issue will be getting that clarity and until they have that clarity, they will prepare for a

no—deal. that what is the big banks are doing. thank you. let's take a look at some of the other stories making the news. german car giant daimler — owner of mercedes benz — has warned profits will fall this year because of trade tensions. it says new chinese tariffs on cars imported from the us will hit sales of its profitable sport utility vehicles — which it makes in alabama for export to the rest of the world. toys r us and babies r us stores across australia will be shut down after the compa ny‘s local administrators said they were unable to find a buyer for the embattled brand. the australian arm of the us chain has 44 stores across the country and employs about 700 people. the photo—sharing app instagram is launching a new feature that lets users upload videos longer than a minute. it comes after rival snapchat announced a similar video feature — aimed at keeping users on the site longer. video adverts typically command a higher fee than other types of online display ads. so will you start to use this new

feature on instagram? get in touch with us. sound like a long time to be on instagram. let's go to asia now — and there's a new escalation in global tension over trade. india has raised taxes on some agricultural and steel products imported from the us in retaliation for us steel tariffs brought in by the trump administration. for more on this we're now joined by devina gupta from new delhi. fill us in on the latest then? well, the indian government has decided to raise import tariffs on major agricultural produce, almond, walnut, apples, shrimp, in some cases the tariff is up from 90%. that will have a big blow to the us farmers mainly because most of the products are imported from the us. india isa

products are imported from the us. india is a big market for these farmers and these tariffs would mean that there could be a shift for the indian consumers who would opt for cheaper produce from other countries. india has said that current circumstances call for immediate action. india has already dragged the united states to the world trade organisation protesting against the steel and aluminium tariff. but experts say that in this entire scenario it is the american farmers and industries that will be losing out on a big and growing market like india. thank you very much. chinese mobile phone maker xiaomi is gearing up for its huge stock market flotation. the beijing—based firm is expecting to raise up to $6.1 billion from its hong kong ipo, which will be the world's largest in two years. first, christine hah is in singapore. it is going to be huge but not as

big as people thought? exactly. at the momentjust big as people thought? exactly. at the moment just to big as people thought? exactly. at the momentjust to give big as people thought? exactly. at the moment just to give you the details of deal, it has priced the shares between 17 to 22 hong kong dollars a piece. so the value of the company is between 54 billion to 70 billion dollars. that is up with some of the world's most valuable start ups. but it falls short of the original plan. they wanted to raise $10 billion and wanted to launch share offers in hong kong and shanghai. they will have been the first to have that simultaneous listing. but the shanghai listing has been scrapped or postponed. no one knows where that stands. but still its investors will include the china giants china mobile. it supplies chips to the dte at the

middle of the us/china trade spat. so interesting times ahead. thank you. asian shares had modest gains but were fairly subdued on thursday as a lull in the sino—us trade tussle helped calm nerves along with reports that the chinese central bank would deliver more stimulus to the economy. european shares are seen rising quite strongly at the open after those modest gains in asia, while oil markets are nervy ahead of tomorrow's meeting of the opec production cartel. in europe, the auto's sector hit a new seven—month low yesterday and is likely to be under further pressure today after daimler late issued a profit warning, saying new import tariffs on cars exported from the us to china would hurt sales of mercedes—benz sports cars — one of the first companies to directly factor in the impact of tariffs. joining us is george godber, a fund manager at polar capital.

soa so a quick chat then about how markets and countries are reacting to these tariffs. we have seen a few responses to the tariffs from the us and the eu and china and india?|j think and the eu and china and india?” think sadly we are at the start of this, not the end. i think really if we look at what is driving us policy there is a fear of how they deal with china over the next 20 or 30 yea rs with china over the next 20 or 30 years and when the president declared himself leader for life, that changed us policy to china. i believe trump will do what he says he will and escalate the tariffs, not back off and we will get another significant wave. do you think the market feeling there is not an end, but a continuation? i think probably if anything market consensus is not fearing the worst or where this ends

andi fearing the worst or where this ends and i don't see any back down in his resolve and as we have seen with the retaliation, i don't think we will see a change in people reacting to it each time. is that due to the fa ct of it each time. is that due to the fact of the in term of economic impact, you can reason that out in the the long—term, but in the short—term, economic impact is minimal in the us. now, there is little. it is pushing up the price of some things. the long—term it is negative and it will decrease global growth and it will be an everyone lose situation. that effect won't hit immediately. thank you. still to come... we'll be speaking to the most influential british woman in the car industry later in the programme— that's the boss of citroen — linda jackson. you're with business live from bbc news. carphone dixons has

released its full—year results this morning, and it's not good news. yes, the electronics retailer's pre—tax profits have slumped nearly 30%. the results come after last month's announcement that it would have to close 92 carphone warehouse stores this year. with us now is patrick o'brien, retail director at globaldata retail. good to have you with us. they were expecting bad i ins, is it worse than they feared or better?m expecting bad i ins, is it worse than they feared or better? it is probably in line to be honest. there we re probably in line to be honest. there were fears there would be more bad news coming out, but it looks like the new ceo has cleared the decks with the closure of stores. we have the data breach and the profit warning. it looks like this, shares have gone up slightly, 2% this morning. maybe not as bad as some

feared. is this part o' after bigger retail picture, a lot of stores on the high street are struggling, is ita the high street are struggling, is it a failure to adapt? no, i think it a failure to adapt? no, i think it is specific for dixons and in it is mainly in their carphone warehouse stores. they're having to renegotiate contracts. but it is going to be difficult for them, let's not forget the network carriers, they pulled out of phones for you about three and a half years ago and plunged that business into administration. so it with ill be a difficult negotiation period. the new boss must be under pressure today? well he has been under pressure from the start. this is a difficult role he has got. he has put a lot of criticism on the previous board. he has brought in big new senior management and he

said he is going to have to change the mobile business. but he has said all the problems they have have are fixable. but that remains to be seen. thank you for the update there. youtube may have pay to stars who have songs on there after a vote in brussels. that will shift things for the social media platform. because it prides itself on its free service. you're watching business live. our top story, later today, britain's finance minister — philip hammond — will address top bankers at the annual mansion house dinner. he'll be trying to convince them that london can remain a "global capital of finance" after the uk leaves the european union.

the motor industry can be a hard road for even the biggest of companies. just keeping up with the shifts in technology can be tough enough and for the established big names there's growing competition from places such as india and china. but it can also be highly profitable. over the last decade the number of vehicles the world has bought has grown more than a third to over 96 million a year. but their impact on the environment is bringing change. and the international energy agency predicts there could be as many as 220 million electric cars on the roads by 2030. but developing that technology can be expensive — so many companies are doing it together such as france's psa peugeot citroen. in 2012 they launched a tie—up with america's general motors to share the cost of developing new vehicles. well, i'm pleased to say that linda jackson, the ceo of french carmaker citro n is here with me now. welcome to you. you are british, the

boss of a french company, and you are one of only three female bosses ofa carcompany are one of only three female bosses of a car company worldwide which is quite staggering. i'm interested to read that when you are given the drop in 2004, the pfa chief said he had simply appointed the best person available. he did not want to get in the fact that you were a woman but you are a one. how does it presented itself on a day—to—day basis when you come in to a male dominated industry and you take over? think you have got to forget you are a female. as you say i got the job because i got the results. you have to have confidence in yourself. it is true you get noticed more. maybe you can use that to your advantage at times. it is like anyjob you do, you have to be credible as a woman ora you have to be credible as a woman or a man you have to be credible as a woman ora man and you have to be credible as a woman or a man and you have to do yourjob well. british woman in charge of a

french company, brexit springs to mind, the car industry is very much under the spotlight with brexit. what kind of assurances are you looking for in terms of brexit and a deal? it is more about having clarity. whatever happens, we need to know what will happen. whether it will be bad or easy, wejust need clarity. the business continues. for example, my grip has invested in vauxhall, in the plant here because we know the business must continue. but at the same time we're worried what impact it will have on the uk market, but also what impact it will have on the european market in terms of imports and exports. i can come up of imports and exports. i can come up with many things we would like but the first thing is we want clarity. and access to the single market? for example. citroen has its 100th anniversary next year. you have launched a tie—up with general

motors to share the cost of developing new vehicles, where'd you see the company heading in the next ten or years of citroen?” see the company heading in the next ten or years of citroen? i think there are a number of things. there are electric vehicles, there unless vehicles and also mobility. will the customer want to own a vehicle or will they want access to a vehicle? will they want that vehicle to be electric and will they won that the vehicle to be totally autonomous? i think those three subjects are challenging all of us because it will come. when it comes i don't think any of us knows. it is about building the structure for that to happen. do you find your new competitors are notjust the traditional car—makers but companies like tesla? do think it is broadening slightly? it is broadening slightly? it is broadening completely. many people think you make a car and broadening completely. many people think you make a carand it broadening completely. many people think you make a car and it is all about the engines, it is also about the digitalisation and artificial intelligence that you having cars now which widens the aspect and

brings in new players.” now which widens the aspect and brings in new players. i want to ask you a political question. citroen have pulled out plans to sell cars in iran after president trump pulled out of the iran nuclear deal. how difficult a was that to make? we have suspended operations and we're winding down in terms of suspending operations. it is something we felt we had to do to align ourselves with the representation of the european union and of course it is very disappointing because iran is a growing market. there was a great appreciation of our vehicles. but we decided to suspend operations. it only represented about 1% of our turnover for the psa group. financially it does not have an impact but we did have iranian customers. linda jackson, really good to talk to you. thank you for coming in. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get in touch with us. stay up—to—date with all the day's

business news as it happens on the bbc‘s business live page. there is insight and analysis from our team of editors around the globe. get involved. we are on twitter and you can find us on we are on twitter and you can find us on facebook. what other business stories has the media been taking an interest in? george isjoining us again to discuss. we were talking about youtube earlier on, about how they might have to start paying stars like taylor swift and ed sheeran for their music content. the most interest thing in that article was last year the music industry made more of the vinyl royalties in the uk than it did out of 25 billion

music videos that were watched. what you're seeing is gradually the law is catching up with big tech. spotify pays billions in royalties and youtube pays very little and youtube will be forced to play —— forced to pay. it will be a level playing field. it will be much more regulated in the next decade. they will risk losing their customers surely, because the appeal of social media is it is free. they will have to compete with instagram now? you will see a move away from having a free service. it will be the profits that are hit. they pay a very small amount of royalties but they make tens of billions of profit so they will pay more royalties and keep a free service and try and find ways

to keep the revenue. we were talking about is to grant with long form video going head—to—head with youtube. do think they will manage it? youtube is so established by now and instagram is all about being insta nt and instagram is all about being instant and photos. instagram does not work as an advertising platform. you have hit the nail on the head. for facebook who owns instagram, they have got to target this key audience because 75% of teenagers in america on instagram and only 50% on facebook. facebook is losing its appeal. my parents are on facebook and that is the problem. facebook is for older people. will people watch the longer videos and they can input video advertising into it. it is all about advertising revenue and that is what they are trying to harness. we have been asking our viewers about whether they will use

instagram is a video platform. one person says they will lose concentration after two minutes.” hope you have been watching the programme for longer than that. another person says who has an hour to spare?! 60 minutes does feel like a long time. the problem is for the big brands, they are the ones struggling. you have never seen a time when customers have less brand loyalty. you can set up a consumer goods business from your bedroom and have a good market share through your followers and you're driven content. for the likes of unilever and dan are in, that is impacting their business. i do not think these businesses who have won through social media will suddenly start losing because of adverts and hour—long videos. it does not work with my mind. dislike what we are

seeing with fox. they have to get on board with the likes of netflix, adapting new technologies and new companies because that is where the money is. to the disruption from the fa ct money is. to the disruption from the fact that we have changed from the age of tv to the age of the internet and people are not watching as much television and internet so it has a big impact on the advertising from how they consume media. this is what these firms are trying to grapple with but what instagram are saying is their current business is not working or they want to move already. this is a business which has already been going —— has only been going for eight years and they are already being forced to change. thank you forjoining us. good to see you. that's it from business live today. there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. hello. you may have noticed that

last night was a bit more co mforta ble last night was a bit more comfortable for sleeping. fresh air moved in across the uk. you can see the oranges associated with the warm and muggy air being pushed away, being replaced with northerly winds bringing in fresh weather from the north. that did not stop the weather watch is getting out early to ca ptu re watch is getting out early to capture the sun rise on what is the longest day. it is the summer solstice today. 19 hours of daylight in the shetland isles. 16 hours in the south—west of england. enjoy the sunshine today. there will be plenty of it. we will seize on sunny spells throughout the afternoon. one or two showers affecting the far north of scotland. quite a strong wind through the afternoon. quite gusty conditions. elsewhere, some breezy conditions. elsewhere, some breezy conditions with the wind coming in from the northwest, emphasising that

fresher feel of things. temperatures down towards the south—east of england. through the evening and overnight, those winds will gradually ease away and we have got lengthy career spells taking us into the early hours of friday morning. that means it will turn quite cool, quite chilly first thing on friday morning. temperatures across many areas getting into single figures. a fresh start on friday morning. we wa ke fresh start on friday morning. we wake up to lots of sunshine once again. there will be some cloud affecting the far north of scotland. that means the sunshine is more hazy. it is 22 degrees in the south—east. ausburg, the temperatures in the high teens. it will feel quite warm and quite pleasant. the winds will fall even lighter. this big area of high pressure firmly anchored across the uk. when you see high pressure like this it means it is settled, very

little change over the weekend and into next week. dry foremost, it will be sunny and it will warm up over the weekend. let's look at the temperatures over the weekend. getting into the 20s for many of us. 25 or 26 celsius by sunday the south. you will notice in the south temperatures up into the high 20s into the week and in one or two places getting into the low 30s. bye— bye. hello, it's thursday, it's 9 o'clock, i'm victoria derbyshire, welcome to the programme exclusive: another foreign aid agency scandal. whistleblowers who worked at one of the biggest and most respected — medecins sans frontieres — have told us that aid staff hired local sex workers while out in africa and one says she was told by a senior colleague it was possible to exchange medication for sex. when i visited a field project, there was a senior member of staff who was bringing girls back

to the msf house. obviously, i couldn't know for certain that they were having sexual relationships, but it was implicit that they were. these girls were very young, and they were rumoured to be prostitutes. we'll bring you our full exclusive story in 15 mins. will the doctor who oversaw the prescribing of powerful painkillers at gosport war memorial hospital face criminal charges? that's what some of the families of hundreds