tv BBC Business Live BBC News October 4, 2018 8:30am-9:01am BST
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this is business live from bbc news with victoria fritz and sally bundock. the irish prime minister is in brussels to try to resolve the biggest brexit roadblock, the irish border. live from london, that's our top story on thursday 4th october. ireland backs the uk prime minister's plan for a soft border, but the "backstop", for northern ireland to remain in the customs union, is fiercely opposed by the dup, which props up theresa may's government. also in the programme: japan s largest carmaker, toyota, looks to deepen its links with technology groups to adapt to the era of autonomous driving. and on the financial markets, solid us economic data has boosted the value of the us dollar, and us government bond yieldsjump to a seven—year high.
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and a treat of a guest for us this morning, we get the inside track on specialist patisserie, as we talk tojeremie vaislic, co—founder of maitre choux. and i'm sure you would be willing to queue for a delicious eclair but for how long — we are discussing queue rage as a mum's suggestion she should get priority in the coffee shop goes viral. let us know — just use #bbcbizlive. hello and welcome to business live. ireland has boosted theresa may s hopes of breaking the impasse in brexit talks by backing her emerging plan for an all—uk customs union with the eu. the irish prime minister
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is in brussels today for talks with the eu's brexit negotiator michel barnier. mr barnier has rejected the idea before, but officials in dublin privately argue it could settle the border question and open the way to a deal. let's take a closer look at the issues involved. after brexit, the 499 kilometre border between the republic of ireland and northern ireland will effectively become the uk's land border with the eu. total cross—border trade in goods amounted to $3.5 billion in 2016. a major component of cross—border trade is farming products, which face some of the strictest eu rules. under mrs may's chequers plan, the uk would leave the eu's single market and customs union but there would be "continued harmonisation" with eu rules on goods and agriculture. that would mean no new physical infrastructure on the irish border and no new customs
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checks or controls. the eu's proposed backstop — in the event of a no—deal brexit — would see northern ireland continue to follow eu rules, unlike the rest of the uk. but that could effectively create a customs border in the irish sea. that's fiercely opposed by the dup, which props up theresa may's minority government. eimear daly is chief economist at the foreign exchange specialists global reach group. good to see you. victoria talking about the key issues. this is the biggest stumbling block many would argue. they are on the same page, looking for the uk to move. all sides are on the same page, no one wa nts to sides are on the same page, no one wants to see a hard border on the northern ireland border. the issue is the customs. the uk saying
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northern ireland will remain part of the eu customs territory set pretty from the uk so that is not a cce pta ble from the uk so that is not acceptable to the dup. victoria pointing out that food, agriculture, one of the big trades between ireland and the uk and theresa may was very keen to point out that when we leave the european union we leave those very stringent rules and quarters about farming and fish and that kind of thing. absolutely, so many aspects, regulation, control, customs. at the moment it is a com pletely customs. at the moment it is a completely porous border but if you bring in new regulatory standards the rules of origin, customs, vat taxes, that is a real issue and will require infrastructure. how will this obstacle be overcome? best
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temporary customs arrangement is the way to go forward. it is a bit of a legalfight,. way to go forward. it is a bit of a legal fight,. almost the way to go forward. it is a bit of a legalfight,. almost the perfect way to go forward. it is a bit of a legal fight,. almost the perfect way to get past this and hopefully what will come up in the transition period is a much more tangible solution to the northern ireland issue. the other issue is the historic issue, the politics, that is as big and mike element as the movement of objects across a border if not more so. yes, this cannot be a political bargaining chip. you have seen a lot of calls within northern ireland asking for a border poll. the last thing we had a referendum on this was 1973 and there was terrorists attacks and fatalities. this is such a contentious issue, it has to be
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dealt with sensitively. where are you from? i am from the republic. you are feeling their scheme may. we will keep an i or —— on this. let's take a look at some of the other stories making the news . the chief executive of royal bank of scotland has warned that leaving the eu without a deal could tip the uk economy into recession. ross mcewan also told the bbc that the bank was becoming more cautious about lending to certain sectors of the economy, particularly retail and construction. next year sits about 1—1.5% if we get an ok growth in the economy, if we get an ok brexit scenario. if we get a very hard brexit scenario we have other factors put across that say it will be less than that and then the economy may well go down to zero with negative growth next year. fast food workers in at least nine countries are protesting over pay today.
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in the uk they include uber eats riders and staff from mcdonald's, jd wetherspoon and tgi fridays in several cities. there will also be a rally in london. strike action from japan to the united states. over to asia, where there's been some major investment in the car industry. sharanjit leyl joins us from singapore with the details. that is right. the self driving car industry seems to be the next big thing especially for japanese car—makers because toyota and honda have separately hit the headlines for separately investing in this along with softbank. honda are investing 2.7 five billion and taking a stake in general motors.
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honda wanting to develop self driving cars that could be manufactured at high volumes. japan's softbank invested just over 2 billion in gm cruisers well. toyota has created a joint—venture to provide autonomous vehicles, as much as 100 million will be pumped into that. a commitment to ensure they have a leading edge when it comes to self driving technology. stocks trading in the asia—pacific region were mixed. lingering worries about us—china trade relations are dampening market optimism. in the bond markets, the us treasury market staged one of its steepest sell—offs of the trump presidency. strong economic data has stoked expectations for additional interest rate rises.
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as a result, bond yields are now at their highest level for seven years. in the european market, the big oil companies are falling in value. there are reports that russia and saudi arabia struck a private deal last month to raise crude output. samira hussain has the details of what's ahead on wall street today. constellation brands will be reporting earnings on thursday and investors looking at the cannabis industry will be paying close attention. constellation is an adult beverage company that sells beer, wine and spirits. among its most well—known offerings are corona and robert mondavi. in august the company launched a strategic partnership with canopy growth, a canadian cannabis company that is also listed here in the us. analysts will be looking to see if constellation's bet on cannabis is paying off.
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joining us is supriya menon, senior multi—asset strategist from pictet asset management. did i say that right? talk us through why it matters, what impact it has on people's money. it is responding to fundamentally much stronger data in the us. yesterday we saw key gauge of sentiment, the services pmi rise to its highest level ever. we also got strong detail on employment so it means that the gap between the us, economic momentum and the direction of rate rises, the gap is widening and that means that money is being put into the us and the us is
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outperforming other markets, so the gap continues to widen. that is why we are seeing negative trade in asia. the money is going to the states. exactly. repatriated by companies and investors. last night i was on the sofa with my brother and sister—in—law and we saw theresa may dancing to the conservative party conference and we universally gasped and put our hands to our faces in order. have markets responded? not to the dance! yes, a variety of reasons why markets were down slightly. looking mainly at the pound because it has been the key matter, brexit headlines at least, that did not move much, it was slightly down against the dollar but thatis slightly down against the dollar but that is because of dollar strength.
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brexit aside, domestic policies, we ta ke co mfo rt brexit aside, domestic policies, we take comfort from the stimulus that is possibly in the pipeline, offset to economic impact of brexit as well as lifting the cap on local authorities being able to borrow, that should help the construction sector and small businesses. we see that as being quite positive but the markets did not particularly react either way. still to come: you'll wish you were in our choux this morning. because we'll be getting the inside track on specialist patisserie with the co—founder of maitre choux. you're with business live from bbc news. figures out show that new car sales
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in september fell by around 20% compared to a year before. september is normally a big month for car sales, because it marks a change in the licence plate series that indicates how old vehicles are. mike hawes is the chief executive of the society of motor manufacturers and traders. what has gone wrong? difficulties around regulation. 30 years ago we introduced a new test for vehicles that has not been updated up until 110w that has not been updated up until now so that has not been updated up until now so when you have this test, and given the entire european model offering had to be retested, invariably there was going to be a bottleneck getting through the testing facilities so the supply of vehicles has been delayed and that is the main reason behind what is a
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significant drop in a big month for the industry. it is a blip because of the new emissions test, not a worrying trend in the car sector? 0ver worrying trend in the car sector? over the years it has been a turbulent year with concerns about diesel and tax changes and a drop in economic confidence. that has been exacerbated by the shortage of supply which means that is why it is down 20% in september. germany was down 20% in september. germany was down 30%. we hope that as we go through the rest of the year it will begin to pick up again because we have to recover the momentum. we have to recover the momentum. we have had the paris motor show, a lot of bosses of the biggest car—makers in europe talking about brexit. how worried are you? we are six months away from the date we officially leave the eu. we need a deal. the prospect of no deal would be
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significantly damaging for the industry, undermining our competitiveness, potentially putting up competitiveness, potentially putting up the cost of cars here and in europe. we need the deal. chequers was a step in the right direction and shows the government understand the importance of this sector and getting a deal. dfs has suffered a dramatic fall in earnings. plenty more on the website. you're watching business live. our top story: the irish prime minister leo varadkar is in brussels today for talks with the eu's brexit negotiator michel barnier. he'll be pressing his case for no change to the irish border. if like us here in the uk
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the working day is just getting going you might think it was too early in the day to start thinking about dessert. no. our next guest probably doesn't think so. jeremie vaislic is the co—founder of maitre choux, the only choux pastry specialist patissierie in the world. he set up the company in london in 2015, with the aim of turning the eclair into an art form. such is his passion for posh pastries, he put his money where his mouth is, and raised about $3 million to help get the company off the ground. and it all started after a chance meal at a fancy london restaurant. tell us how this started.
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tell us how this startedlj tell us how this started. i started my career in finance which was com pletely my career in finance which was completely different. i had always loved pastry as a kid and after a chance encounter in a restaurant with my now partner and pastry chef we started thinking about creating a brand that was promoting french pastries in london. 0ver brand that was promoting french pastries in london. over time, i had beenin pastries in london. over time, i had been in london since 2004, the quality of food at that time, pastries, never picked up that much, so pastries, never picked up that much, so to compare the quality of pastries in france, in london you had a lot of good bakeries but not really fine pastries and this was oui’ really fine pastries and this was our goal, to try to bring quality products to the high street. let us look at these three michelin star styled pastries. explain how you spotted what is effectively an
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investment opportunity in a clients. when you think about an eclair, they are all the same shape, it is the same process that goes into making them, but each individual one is a sacred peak in itself. you are taking french pastries and putting them in the form of an eclair. this one is normally a round cake which we transform into an eclair. you have your chocolate cake which is like your chocolate eclair. you have throat. how much would that cost? £42. £42 for eight eclairs. it is fairly luxury. you are based in
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london on the kings road in south kensington at westfield. what is your thoughts for the future? are your thoughts for the future? are you going to stick with a very high—end luxury product or are you going to go mass? no. the idea is to bring fine quality pages to the high street. we are trying to keep quality as high as possible. and expand without damaging that. if we are going to expand in other countries like the united states, the middle east, asia, and each country we are going to set—up a central kitchen which will allow us to make very fresh products every day. your chef is key. you skipped him from a three michelin star restau ra nt. him from a three michelin star restaurant. he was head pastry chef... is he french? yes. will he
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be able to stay? yes, of course. we have two frenchman making wonderful pastries. how do you think the french are going to respond? how does it compare to other countries? we are does it compare to other countries? we a re really does it compare to other countries? we are really high—end. the product co m pa res to we are really high—end. the product compares to other high—end pastries in france or other countries... in france you have eclair specialists but the way we do it is we do not just do eclairs. choux pastry is very versatile and you can do a lot with it. we have a lot of products in store. we are in a position to go to any country and establish ourselves as eclair makers and choux
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makers. we have a programme which is extremely successful, outside of their uk similar programmes are going great guns, has that increased demand of competition? it increases demand of competition? it increases demand for sure because that gets people excited about pastry and cake. everybody loves to bake, especially in england. it's definitely drives demand. in terms of competition, our chef is a three michelin star chef! good luck. 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 on the business live page. there is an analysis from our
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editors around the globe. we want to hear from you. editors around the globe. we want to hearfrom you. get editors around the globe. we want to hear from you. get involved on the web page. we are on twitter. you can find us on facebook. we are on tv and online. what you need to know when you need to know. can you spot the cream around my mouth! some workers at mcdonald's and jd wetherspoon striking. is on increasing the minimum wage for their workers, $15 in the us. £10 in london. £9.50 outside london. what will it do to inflationary pressure?
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it will add to inflationary pressures . it will add to inflationary pressures. we have a tight labour market in the uk and the us and other places like japan and parts of the eu and this means that workers are ina the eu and this means that workers are in a better place to demand wage increases either through strike action or self—regulation such as the amazon decision. pressure starting to emerge and catch up with the strength of the labour market. timing is everything. company bosses because of the tight labour market have to listen. it is interesting for these companies doing the disruption such as amazon and uber. how much of it was down to low wages. do you think this will create new opportunities for companies? possibly although it is better for workers, but yes for companies that means they will have to take margins
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and margins are elevated in the us. we are concerned about that. in canada a mum was saying she felt she should be at the front of the queue in the coffey shot because she was a mum and sleep deprived and she needs the caffeine more than the other customers. so many people saying why? it is a big dealfor retailers to get this right, the flow of people. it depends on the time of day. my morning coffey before work, iam not day. my morning coffey before work, i am not about to let anybody ahead of me in the queue unless they are distressed, but if my toddler was clambering for an ice cream perhaps i would wait longer. brian says the problem with coffee shops is not the queues it is the table grabbers a while i am standing there the tables get wrapped. july leaves a half pint
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and go to the toilet in the pub? someone says she wants to be treated equally and she should wait, what of someone equally and she should wait, what of someone disabled wanted to go in front of her? adam says no one can queuejump, front of her? adam says no one can queue jump, we front of her? adam says no one can queuejump, we are english, we love queuing. also you wouldn't say anything to the queue jumper. especially in the run—up to christmas retailers have a new strategy to manage queues as people rush to the shops. absolutely. increasing optimisation so you have automated checkout and that reduces queues to some extent. or makes the rage worse! or makes it worse. we have all had experience of that. having grown up in india, accused are not stand for anything where i grew up. —— queues.
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another mild start to the day but we will see changes over the next 24 hours. this morning we have had flowed across the uk particularly towards northern and western parts where it is bringing outbreaks of rain into scotland and western areas of northern ireland. some drizzle in north wales. further south mist and fog should have cleared away and there will be brighter skies and sunshine across central and eastern areas which is where you will have the highest temperatures. tonight, cloud and rain. gradually moving further south. not moving very fast. very slow. it is a cold front which is moving southward. into friday, we
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have this cold front across southern parts of ireland into northern parts of england. to the north of that we have called air moving in. to the south, keeping mild conditions, so temperatures overnight down at feeling chilly across northern areas with clear skies. friday, sunshine across scotland and northern ireland but this rain will continue across northern england, west wales. in the south—east, dry and sunny but holding on to the warmer air. a contrast in temperatures between the south—east and the north—west where those temperatures will drop to about 10—13. significantly cooler than today. into the weekend, that weather system is with us. low pressure develops on that. saturday is looking quite wet across england and wales. perhaps the far
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south—west escaping with a dry day until later. for scotland and northern ireland it should be drier. quite chilly for many of us. temperatures 9—13. sunday most of the brain will have cleared away so it will brighten up with sunshine on sunday. temperatures low to mid teens. some changes over the next few days. stay tuned. hello. it's thursday. it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. this programme can exclusively reveal that a second british woman has died after having so—called brazilian butt lift surgery. we'll talk to other women who've had it and find out what went wrong.
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i got admitted to hospitalforfive days and ended up on iv and biotics. luckily one of them work for me. for the first few days nothing was working. my infection was getting worse and worse. i know other girls wear the antibiotics didn't even work for them so they ended up with really bad infection wounds. the procedure has the highest death rate of all cosmetic surgery. you can watch our exclusive film at 9.15. the former teacher who's accused footballer cristiano ronaldo
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