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tv   BBC Business Live  BBC News  January 15, 2019 8:30am-8:59am GMT

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decision day — xasaiifija; §
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the vote later today. getting one step ahead in the shoe business — we'll hear why one new footwear brand wants us to wear wool and eucalyptus fibre instead of big name logos. local authorities in one part of china have let us know — just use the hashtag bbcbizlive. £975?sz eie?ei‘§ 555 5521555... w... 7. w. .., ........ for businesses large and small both in the uk and europe that leaves
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all their foreign trade is with the bloc and many of them have spent a lot on brexit planning. whatever happens tonight the uk government's own analysis shows the economy will be worse off outside the eu. the amount ranges from 2 and a half percent to nearly 10 percent if there is no deal. as different forms of exit have
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emerged there's been a lot of volatility for the pound as markets try to predict what will happen. this graph shows how it's fared since the british public voted for brexit injune 2016. the uk environment secretary michael gove has told the bbc it would be damaging to democracy if parliament rejected thersea may's brexit deal. the real danger is if people do not vote for the government this evening we face either a no deal brexit with the short—term economic damage that would ring or worse, no brexit at all. we know there are people in the house of commons and outside who have never made their peace with this decision, who want to overturn
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it. joining us now from westminster is iain anderson, who's the executive chairman of the communications and market research agency cicero group. pa rt part of your work is to aid clients worried about the future. what's your prediction about what will happen today? i'm kind of guessing alongside everybody else at the minute. frankly, it looks like this is going to be heavily defeated in westminster, we are just talking now about the question of degree. the question i think most businesses have got right now is for a do we go from here. this brexit saga has the going on for the last three—year is, businesses are touring their hair out, they are actually preparing significantly now for eight no deal on exit. the politicians in the building behind me have got to sort it out, they've got to kind of cross
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party divides and get something that ensures that our economy and businesses who create those jobs, are not endangered. you talked about his misses being ready and preparing themselves. there is a marked difference, isn't, between what businesses have been able to do in terms of breath and for small and medium—sized businesses are able to do in terms of money. exactly right, i work mainly with large companies, with complicated supply chains. they have got the resources to do the prep, they have the resources to invest in consultants and people who can help them with re—engineering their businesses. what smaller companiesjust their businesses. what smaller companies just don't have is those same resources and i'm actually now more worried about the small and medium enterprises, they may not trade with the european union, there isa trade with the european union, there is a myth about this debate that they don't trade with the european union. firstly many do and many of
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them rely on the european supply chain to get stuff into their businesses, to provide goods and services domestically here in the uk. that's why it's important or big and small companies come for the politicians to get a deal. what advice are you giving to those businesses, those business leaders, who come to you asking you, what should we do? the best advice, i'm afraid right now, is to prepare for no deal. the best advice is to get your supply chain no deal. the best advice is to get yoursupply chain in no deal. the best advice is to get your supply chain in place, and your people in place, to be ready for those politicians not to be able to work it out. i'm not very hopeful. you know, we've had two and a half yea rs of you know, we've had two and a half years of going round and round and round in circles. in my view, parliament should have given the government a mandate after the 20 17th election went theresa may lost her majority. it should have turned
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round and asserted control at that point. it should have said at that point, look, this is what you can and can't do, we are doing all of this at five minutes to midnight and therefore the best advice for any business, i'm afraid, is to prepare for eight no deal brexit because i don't have any hope that the politicians we find is going to be able to work it through. 0k, thank you very much indeed. more on that later. the owner of peugeot and citroen — psa group — has announced it sold a record 3.9 million vehicles last year. ajapanese court has rejected the latest request for bail charges ef financial migggqgjugg -- ,, , ,. the bail rejection had been widely expected. mr ghosn's lawyer said his client is unlikely to win bail
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until the case comes to court. hundreds of flights are being cancelled at 8 german airports today including at the nation's busiest travel hub frankfurt. it's because security staff walk are again striking over pay. as estimated 220 thousand passengers are likely to be affected by cancellations and delays. ivanka trump, the daughter of us president donald trump, will help in the process of selecting the next world bank president. according to the wall streetjournal and financial times, she will assist treasury secretary steven mnuchin in the process of naming jim yong kim's replacement, who is stepping down as world bank president after six years in the post. china's government has signalled that it will take more action to boost the country's slowing economy. tax cuts and more infrastructure spending are on the cards for the world's second biggest economy as it feels the pain of the trade war with the united states. 0ur correspondent robin brant is in shanghai... we don't have that much concrete
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detail yet, do we, we don't have that much concrete detailyet, do we, but we don't have that much concrete detail yet, do we, but tell us what you know. what we have at the moment isa you know. what we have at the moment is a kind of smorgasbord of measures from the people's bank of china and central government, all following on, the central bank, rather, all coming from a meeting of the communist party leaders. we have a reduction to the rate requirement for banks, the amount of money they have to keep set—aside, we have measures to encourage provincial governments to borrow money on the bond market and usurper infrastructure spending. all of this encouraging for those in china who have seen the economy in the country cross slowing quickly, the end of last year tanking. the auto market
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particularly saw the man plunging the first time in 20 years. the problem is if china is looking towards another stimulus it will be on the scale of 2008, is there as much space as there was back then when it comes to railway lines, numerical systems? the answer to thatis numerical systems? the answer to that is no, there is not. robin, thank you. let's look at markets quickly. much better today than they broke yesterday. in asia, japan opening for the first time this week up opening for the first time this week up by opening for the first time this week up by i%, hong kong up i2—macro. a bit of a bounce back from strong declines yesterday following the trade news from china that robin was referring to. a little bit steadier but will this last? that's wall street. quick look at european markets trading. the ftse 100 listed why mining markets trading. the ftse100 listed why mining stocks, while companies like bp, shell, the bread and butter up like bp, shell, the bread and butter up the ftse100 up around 1%. that is why the ftse is doing well right
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now, strong sentiment across europe at the moment. and on wall street, a company that has a big day ahead is forward , company that has a big day ahead is forward, set to announce details of a new partnership with books wagon at the detroit motor show. michelle fleu ry at the detroit motor show. michelle fleury is there. the ultimate pony car, board unveiling the most powerful vehicle etc made, the shelby gt 500. it's not the only highly anticipated debut here at the detroit's motor show. the car—maker is about to expand its partnership with bw at the time it's cutting costs to meet the challenges of electric vehicles and the push towards autonomous driving. he was the board president of global marketing. if you are smart it reduces your capital and investment in things that customers don't see, like platform. i'm not going to get into specifics but there will be new news on ford on multiple fronts, we've been working with books wagon
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and other companies, these are important ways to become more efficient and make vehicles more capable. and message echoed at the bw stand. the german car—maker investing $800 million and creating 1000 jobs to build a new electric car at its plant in tennessee. and it could still use more capacity to build cars according to the bw boss. we are build cars according to the bw boss. we a re really build cars according to the bw boss. we are really strong in europe and china. not that strong in the united states we are very complimentary with ford and books wagon. these quys with ford and books wagon. these guys are with ford and books wagon. these guys are really serious. and really professional. so far it doesn't appear at this partnership will extend equity stakes but given the technology trends disrupt this technology trenddesruptthis collaboration, whether it's technology trenddesruptthis other llaboration, whether it's technology trenddesruptthis other car woration, whether it's oi’ ortech is one of the big themes of firms, is one of the big themes of this year's talk show. joining us now is james hughes who's
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the chief market analyst at axitrader. todayis today is a huge day for brexit and dump the markets know, they've known it for a while. i imagine they've factored in a lot offered as corn to happen or have they? from a sterling point of view we don't expect too much of a move on the ftse100 but we've been leading up to this forever and a day and it feels we've liked —— we've got some kind of brexit fatigue. the be all and end all with this, we have no idea, we don't know for happen, we are pretty sure she will lose but after this we 55 i what's sure she will lose but after this we i i what's going sure she will lose but after this we 55 i what's going to don't really know what's going to happen. from a sterling point of view, this is particularly negative and anything, it's interesting the way sterling is moving, the pound moves on anything that points to brexit not happening, that's seen as positive for the pound at the moment. so something points to brexit not happening or article 50
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being delayed, that's a positive move for sterling. anything that points to brexit happening in any form is sterling negative at the moment and that kind of shows you the sentiment from a financial point of view in trading circles, that's the sentiment we get. that's something we said a lot, for the ftse100, most of the companies listing there are international companies, doable, a lot of businesses in us dollars, there are not so much impact it, but when it comes to small and medium—sized companies that export and import a lot movements in stirling have a big impact, don't they? 0n bottom lines and quarterly results, a lot of companies, not with earnings and saying currency exposures companies, not with earnings and saying currency exposures names saying currency exposures names profits are down by so much. proceeds is a big dealfor a lot of these companies in the ftse 250. that's where you get the real issue and the bigger the volatility, the bigger the fluctuations, the mo
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rocca it becomes the issue being that no mp in this country knows what is going on, no business can second—guess. they cannot plan ahead and we put this a million times from mps and how people should be planning and going ahead but doesn't mean anything to because we all know that there is an absolute mess going on in the comments and how can anyone plant than the mps can plant themselves? absolutely, james we will talk to you later on as well, more to discuss with james including what we would like you to comment on. if you are given more time off will you go out shopping and spending, that's the theory in china. stay in bed, that is what i would be doing. a duvet day. still to come getting one step ahead in the shoe business —— we'll hear why one new footwear brand wants us to wear wool and eucalyptus fibre instead of big name logos. they think it's your best foot forward ! you're with business live from bbc news. uk businesses are scrambling
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to prepare for a no—deal brexit as the prime minister's proposed agreement with the eu is set to be deafeated in parliament. manufacturers have been stockpiling materials and hedging against border delays. nina warhurst is in blyth to see how a british robotics company is trying to cope with uncertainty. look at this. this is an industrial washing machine, a bit like your domestic one but instead of your laundry you putting your parts. - look at italy, as a amih ahead 777 ff" " ' a fignih ahead of r” " ' to a fink ahead of r” " ' to eonto it ahead of r” " ' schedole readg es sate-“mike , ~ , ~ mainline of schedole readg es sate-“mike , ~ , ~ mainline - of brexit. talk. brown, the man who let’s talhobrow-n; the me n who let’s totktobro-wn; the me n who the ~ ~ , let’s tetktobrown; the me n who the decision to do let’s tetktobrown; the me n who e decision to do that, how made the decision to do that, how important is to have machines like this ready? it's important as the uk manufacturer that we give european customers confidence that they will the product they expected march and
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april., despite what happens with brexit. it sounds expensive, we know lots of your workers are putting in extra shifts, are you having to make that heavy investment? we are incurring costs, it's about time, we are building extra through february and march which we will ship mid—march, we will see a drop in demand through april because we will have been satisfying demand early. yes, it will impact on labour costs and also the ability to manage results. that's just and also the ability to manage results. that'sjust in the short term. we know not all companies have that margin to invest and get things ready for export - three quarters manufacturers - us concerns customs agreement, european about customs agreement, european trade agreements, wantjust put pressure on the company could threaten them, it's the eie’eiie’ieieefiw . . the in g:f:f.:;,, . . the in an::f:f.:;,, . . the in an 5:2: worthrw f f across the uk in an industry worth 275 - -
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across the uk in an industry worth 275 —— billion pounds. 275 yen pounds. —— billion pounds. the business live has plenty of non—brexit news. is and has results out today. boo—hoo releasing a trading statement, a massivejump in sales. it was expected to do well, shares up 3% in anticipation of the news. your‘re watching business live — our top story — britian's parliament is set to reject theresa may's brexit deal in a crucial vote today — something the environment secretary says would damage democracy.
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the labour opposition has renewed calls for a general election if the deal is rejected. now let's get the inside track on an industry which is stepping in the right direction — it's footwear. according to credence research, the global gootwear market was worth just over $222bn in 2017. 0ne firm making big strides in the industry is allbirds, which was founded in 2016 and according to time magazine it's created the "the world's most comfortable shoe". we sent our very own ben thompson to meet with the firm's co founder — tim brown — to find out how they've become such an instant success. i was iwas in i was in new zealand playing foot ball i was in new zealand playing football for a living, i used to get lots of free, sponsored gear and the
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trainers were overdesigned and over coloured. is all an opportunity, ha rd coloured. is all an opportunity, hard to find something simple. about 20 billion payers of shoes made each year. 20 billion? enormous category. i went to my first woodwork category andl i went to my first woodwork category and i find a prevailing low cost mentality that defaulted to making shoes from synthetics and not nice leather and saw an opportunity to make from different materials. you have very little knowledge of making shoes, the shoe industry when you started. completely naive about the category, about how shoes were made and an industry, i found that hasn't changed in 100 years under saw an opportunity to do things differently. i guess some naivete was quite useful, it meant you could ask questions about why things haven't changed for so long? why are shoes made from synthetics, that's the way it's always been done. we
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had to sell them, you have to make them for this margin and you know, don't ask questions, silly boy, tended to be the refrain. i think it was an opportunity to look at something with fresh eyes and the power of that allowed us to introduce rule into footwear which had never been done, eucalyptus fibre, and making the source from sugar cane. it's been a powerful advantage. this is one of the shoes, all your creation, how do you advantage. this is one of the shoes, all your creation they' do you advantage. this is one of the shoes, all your creation they are you advantage. this is one of the shoes, all your creation they are going to convingg 25221212; ggg gg'gg tg last as long as may be a synthetic or robert this last as long as may be a synthetic or robert- this is made from or robert sole, this is made from wool. the magic of all is it absorbs moisture, regulates temperature, this kind of will is normally used for making fine suits for gucci and the likes of tom ford. a number of famous faces are big fans of the product. how did that come about? emma watson, matthew mcconaughey, it's happened organically, it's been
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so it's happened organically, it's been so great about the business and the brand, the organic support that we have got. how is that conversation about is a still a vehicle —— sustainability changing. is that the only thing people care about?l couple of weeks ago the was united nations report saying we have 12 years to keep google warning below one and a half degrees before we reach a tipping point. the bottom line is we have to - better making stuff and ye believe of making stuff and we believe it's business as that. but not consumers changing the way they behave. tell me about some research behind this, making shoes from wool and eucalyptus trees. 0ut those that work? well is a renewable resource, we use eucalyptus fibre, cellulose, that's incredibly renewable, we found a way to take the petrol from eda foam, one of the most commonly used materials and footwear and replace it with sugar cane. all these problems, you know, can be solved, i think, these problems, you know, can be solved, ithink, when these problems, you know, can be solved, i think, when you create a brand and business model that
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allowed you to invest in materials and research and commit to that. that's the boss, tim brand, talking to ben thompson. i wonder if he found a size 335 shoes to fit them's feed. it can be done. we asked you about your attitudes to two and a half day weekends. you've been tweeting us in your droves. nicholas from yorkshire: "is that borrow more to spend more, get paid more to spend more or pay less tax to spend more...." kenneth from suffolk: "doesn't matter how long your weekend is, 2, 3, 4 days if you do not have the income and revenue then you cannot spend unless you increase your debt burden level, problem is wealth distribution in many countries" james, if you had a longer
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would you go out and spend or bed? i would spend it bed? i woi.‘ i i spend it jig bed? i woi.‘ i wouldl it jig m— get dragged out by the kids. but we are talking about combating the chinese economic slowdown to discover world in its press. anything you hear at the moment is global economic slowdown, the fed blaming it at the moment for its policy, a lot of change. in china we are seeing a slowdown, the trade figures out yesterday, other figures out this year so far in 2019, a lot from china showing they are having a tough time. with the trade discussion and the damage the us is causing us a weight the chinese government want to try and boost spending and spending is a massive deal in china and that's exactly what they want to be able to do is get people spending more money. big day today for the uk, brexit, let's
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look at the new york times with a different take. the us government shut down, paralysed and away, as is the uk government. this article has a great line it says two governments paralysed, populist project stalled, ballmer rebel democracies in crisis and that tells you everything you need to know at the moment. donald trump storming out of a meeting yesterday about various different points and today in the uk we have no idea what will happen. one person who i think is worrying more than anyone else is theresa may, let's go live to the picture at downing street, this is the scene, i wonder what she's thinking, sally? i wonder, a busy day ahead. she's probably watching us, to be fair. asda is everyone else in parliament. we'll keep you across every single twist and turn. stay with us on bbc news as we keep you across this historic day. hello, good morning. largely cloudy
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day across the to flew the in the cloud flew us the - in the cloud flew us some - in the cloud flew us some - in t but.oud flew us some- in t but a jd flew us some- in t but a mild to day. to - day. i broad one sector the uk, essentially winds 7— . winds er milder sooth—westerly winds bringingmilder‘ to the north they were —— air. to the north they were —— weather front bringing air. to the north they were —— weatherfront bringing rain, heavy and persistent times in the north—west. elsewhere the odd shower, largely dry today, there will be some bright sunny spells breaking through the cloud especially towards the east. look at the temperatures, 10—11d, really quite mild. 0vernight tonight rain across the north and west of scotla nd across the north and west of scotland eventually moving south—east words pushing through northern ireland into the far north—west of england during the early hours of wednesday. keeping the mild air, temperatures not falling below 6—9d. a pretty mild
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start but then this cold front moving south and east words, the rain associated with it. behind that wind direction changing to north—westerly, gradually turning colder as the day goes on. all of us at some point on wednesday will see rain as it pushes into the south—east of england during the afternoon but we find it sunshine developing, brighter afternoon, some showers, is turning wintry over higher ground, turning colder as well. these are the afternoon temperatures, 5—7d. holding onto some mild conditions in the south—east but eventually the cold front clearing through the kent coastline, all of us under the influence of the northerly wind. you can the wind influence of the northerly wind. you can - the wind direction, influence of the northerly wind. you cai tracking e wind direction, influence of the northerly wind. you cai tracking e wir to iirection, influence of the northerly wind. you cai tracking e wir to iiren north pole, ‘conditions ‘ conditions filtering into pole —— through the uk as into mtg, from " " '
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ice in on:e in places, on:e in plac crisp you on:e in plac crisp you on:e i day c crisp 5 - 3s— on the wintry, even down to east, wintry, even down to low—level scum are some sleet and snow for the north—east of england, eastern scotland, a - colder day, look at scotland, a much colder day, look at the temperatures, - having to the temoeratures. a—gd. having to , the temoeratures. a—gd. having to , the cold air, cold weather for keep the cold air, cold weather for the rest of the week. - all the rest of the week.i,hat'—eal.l goodbye. you're watching bbc news at 9:00 with me annita mcveigh — the headlines. theresa may warns mps not to let the british people down, as they prepare for a historic vote on her deal, setting out the terms of britain's departure from the eu. if we don't vote for this deal this evening, then the message that will be sent to the british people is your decision on the 23rd ofjune 2016 is not being respected by the people that you sent to the house of commons. but with many of her own mps expected to join opposition parties
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to vote against the deal, it is widely expected to be defeated. labour says mrs may will have to set out her plan b. this evening the prime minister needs to stand up at 7:30pm when we know the vote and make a statement on plan b. we've been discussing whether she should do it in three days, seven days.
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