tv BBC Business Live BBC News February 11, 2019 8:30am-9:01am GMT
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this is business live from bbc news with sally bundock and ben thompson. can the world's two biggest economies reach a trade deal, with less than three weeks to go until the march 1st deadline? live from london, that's our top story on monday 11 february. the us and china head back to the negotiating table in beijing, after talks in washington ended without agreement. what hope this time around? we will discuss what is at stake. also in the programme... when the daily grind overwhelms — we look at how employers injapan are trying to bring about a better work—life balance. the financial markets in europe has started a brand—new trading week. stress, depression and anxiety — all detrimental to work, but increasingly common in the workplace. so we meet the firm that says it's using techniques for elite sport
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to help improve businesses? and it's also boosting productivity. and so today we want to know do you struggle to juggle work life and home life. do you have any sort of work—life balance? let us know — just use the hashtag bbcbizlive it is like the holy grail, getting the right work, life balance. have you achieved that, send us your comments. top—level us officials are heading to beijing this week for the latest round of us—china trade talks — with less than three weeks to go until the march the 1st deadline for a deal. leading the us delegation will be trade representative robert lighthizer and treasury secretary steven mnuchin. mnuchin has acknowledged that a "wide range of issues" remains to be worked out. key among them are likely to be washington's claims of theft of american intellectual property and massive market distortions through subsidies and other measures.
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president trump said in his state of the union address that any new trade deal with china must include real, structural change to end unfair trade practices. the news that mr trump doesn't plan to meet his chinese counterpart xi jinping before the deadline unsettled the global markets last week. without a deal, tariffs on $200 billion of chinese imports will rise from 10% to 25% on marchi. the un's trade agency has warned of huge costs if that happens. in a report the un estimates that east asian producers will be hardest hit, with a projected $160bn contraction in the region's exports. dr yu jay is china research fellow at chatham house and shejoins us now. good morning to you and welcome to
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the programme. the clock is ticking, 17 days left come off of progress? it will be kind of a partial deed if they reach some kind of agreement because washington is asking for structural change of the chinese economy within 17 days. i think it's unlikely to achieve that but what we can hope for us both sides looking for a deal because washington is getting extremely worried about, the chinese economy slowing down, all sides want to achieve something and judging by the composition of the delegation its senior enough to make decisions. the big sticking points as sally outlined is structural reform, explain why that is and why it is fundamental. the united states is asking china to change its state led and planned economy, the party and the government should stop interfering in economic activities but that's unlikely for china because that's the model of the
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chinese economy and what they have been running the last 40 years. the olive branch the chinese government is offering so far is introducing the foreign investment law which will somehow try to prevent the forced economic transfer. who stands to win or lose out of this, we often said no one wins in a trade for bob are some real losers who could be severely affected and i'm thinking about the global supply chain, we don't realise how interconnected countries are fun to trade. most of the business sectors are explored orientated, china has served as a very important hub for the double supply chain. with the chinese economy slows and china can no longer provide the hub function, what is the next so—called china to replace that? there's clearly challenge is there of trying to get the deal done. but how optimistic are you that there will be a breakthrough? the clock is ticking, pressure is on, will it happen? as i
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said, it will be a partial deal, it looks really good on paper, that is what donald trump wants and that is what donald trump wants and that is what wall street and china once, you have the sound bite of the deal but exactly, in essence, how much the chinese economy can enact change in such a short period of time, really, they cannot. so good to talk to you, thank you for explaining that. clearly, we will talk about this again and the story will run and run but for now, thank you. let's take a look at some of the other stories making the news there are growing fears of a second us government shutdown after negotiations between republicans and democrats in congress broke up without agreement. the two sides must strike a deal by friday. the disagreement centres on president trump's insistence on a bill that funds a us—mexico border wall. japan's nikkei is reporting that toshiba is cutting its profits outlook, because of growing costs at its energy business. last november, toshiba pulled back from nuclear projects in the uk and cancelled a five—year misadventure in trading liquefied natural gas by paying a chinese company more than $800 million to take its interest in a us lng export venture.
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hungarian women with four children or more will be exempt from paying income tax. the move was announced by prime minister viktor 0rban, as he unveiled a plan to boost the number of hungarian babies. 0rban described the plan as defending hungary's future without the need for immigration. hungary's population is falling by 32,000 a year, and women there have fewer children than the eu average. to asia now, and iphone sales slumped in china in the last three months of 2018, according to research firm idc. sarah toms is in singapore... i guess it's no surprise to hear the iphone is not so popular given apple's warning at the beginning of the year? that's right, as you said,
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according to idc, a tech consultancy, apple iphones shipments to china plunged almost 20% in december, the december quarter. demand has been shrinking for iphones. apple blames china's economic slowdown but that looks like something more could be a play because father is bucking the trend. the chinese telecoms giant registered more than 23% gain despite this slowdown that apple has been talking about. —— huawei. the chinese company has also been in the headlines recently, a top executive as you may remember has been arrested, the is also been warnings from intelligence agencies in several countries about security worries but still huawei phones are hugely popular in china as well as other asian countries and that's because the chinese handset maker's
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average selling price is around $300, much cheaper than the latest iphone models. huawei also has different price brackets which appeals to shoppers and it gives the company a huge advantage in a fiercely competitive market like china. sarah, thank you, interesting to see how trends are changing in china. as faras to see how trends are changing in china. as far as the markets are concerned, in shanghai, closing up over one and a half percent higher, the first day of trade for china in over a week. they were enjoying new year celebrations last week. japan, don't panic about that, that was friday closing, japan today close for a public holiday, they are enjoying a day today, they didn't have much time at last week on like the rest asia. hong kong opening today, up a little bit, that is reminding you have been centred on wall street on friday. that's luke of the european markets. toshiba amongst those out with negative news injapan. all
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amongst those out with negative news in japan. all the amongst those out with negative news injapan. all the markets headed up words. interesting actually when we think about some of the things in the background, uk growth figures out today as we mentioned, coming out today as we mentioned, coming out quite soon, expected to show growth a smidgen in the last quarter, when you think about germany, virtually grinding to a halt, italy in recession, it is a lot of investors minds in europe and trade talks in the background always going on in beijing. that's a look at the markets for now. sally, thank you. joining us is trevor greetham, head of multi—asset at royal london asset management. let's pick up on the growth figures that sally mentioned and i do not think of are five. expected growth is expected to be 0.3%, quarter on quarter, the expectation is that growth was often in the first quarter of this year, in the uk it's
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a negative global backdrop, the world economy is slowing down, the export markets we export to from the uk are slowing. but brexit uncertainty has affected business investment and consumer confidence. the only thing keeping the uk growth numbers positive we think in the first quarter, is stockpiling. you will get consumers stop piling things like tinned food. will make a difference to overall gdp? not the consumers so much but the businesses, the monthly cbi survey and the employers group the biggest reading ever on the question, are you increasing stocks of unfinished goods? if you are an exporter you don't love what trading will still be on the 1st of april, you are selling store cupboards, that is boosting short—term growth but it suggests europe a link that growth for word and the second quarter of the year will be negative, especially if we have a no deal exit. we've had such a flurry of earnings lately and that continues, we got here from lots of companies this week, coca—cola, nissan,
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nestle. at the same time i'm sure in markets they are really concerned about three deadlines, the shutdown deadline on friday, the us trade talks, marked the first and then exit on march the 29th. yes, you have the big concerns in the markets but you also have the fact that us interest rates have stopped rising, the chinese government is adding stimulus and the big drop in oil prices last use putting more money in people's pockets. i think it will bea in people's pockets. i think it will be a year of two halves, wide trading ranges for stock markets, sometimes the gas will be half full, there is stimulus out there. sometimes the class will be half empty because of the political concerns empty because of the political concerns the fact growth has been slowing. we are waiting to see in china especially whether the government stimulus measures that are reallyjust government stimulus measures that are really just kicking government stimulus measures that are reallyjust kicking end in the first half of this year, will boost growth in the second half and in the past that's been quite important for the world economy. trevor, for now,
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thank you, we will talk about worklife balance and hope you manage to do that in a job like yours in the city. trevor will be back stop still to come... what can your business learn from elite sport? we'll meet the founder of corperformance, which aims to improve the resilience, health and wellbeing of staff. you're with business live from bbc news. the number of shoppers on uk high streets fell for the sixth consecutive month — according to the latest figures from retail research firm springboard. footfall fell by 0.7 percent. so — a fall, but it's not as steep as this time last year when it was slumped 1.9 percent. let's speak to diane whirl — she's insights director at springboard who compiled the figures. good morning to you. no great surprise, is it? it was better than expected but of course what
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happened, all of the increase, all of the uplift, the better performance we are seeing in footfall ca me performance we are seeing in footfall came from the first week of the month. all of that came from one single day which is where we were comparing new year's eve this year with new year's day last cluster. it led to a huge uplift in footfall which influenced the week and then the month, the second to the fourth week footfall fell by over 2%, the figures disguising a bigger drop in footfall tha n figures disguising a bigger drop in footfall than they first suggest. figures disguising a bigger drop in footfall than they first suggestm itfairto footfall than they first suggestm it fair to say it's hard to predict what will happen in the next few months? i mean, it's difficult to hmmfi months? i mean, it's difficult to forecast at the moment but given the level of uncertainty economically and politically. footfall is on a long—term downward trend because of the internet and the increase in leisure spend we are making us consumers. it would rise in the next few months. it's likely to stay hunting around —1, —2—macro percent,
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possibly a little bit of an improvement in the second quarter than we have some uncertainty around brexit. you talk about increase in leisure spend, are we spending more on experiences and buying less staff? that's a long-term trend we have picked up stop it started with hospitality room and copy shops and restaurants, that continuing into other types of leisure. people looking at experiences, the whole host of changes going on society, a huge rental market and that means people have less space to store stuff and the younger shopper isn't really interested in buying so much stuff but more about experiencing things and that's why we are seeing uplift in footfall after 5pm which outside of london, most of the shops are shot after by pm, they are not buying things, they are doing things. generally people are sick of buying stuff they don't need. diane, good to talk to you, thank you as always. the high streets really struggling in the wake of the
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slowdown in consumer spending. your're watching business live — our top story... the us and china head back to the negotiating table in beijing, after talks in washington ended without agreement. remember there is not much time, just three weeks so before the march the 1st deadline for both sides to come to a deal and clearly it has big indications for a business around the world, notjust in the united states or china. now — what does elite sport have in common with big business? our next guest says ‘a lot‘. in britain almost three in 10 adults use sports nutrition products. these products are most popular with young men — at a rate of 61% of male 16—34 year olds. and while specialist nutrition is just one part of enhancing your sports performance our next guest has developed a business that offers
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a more holistic approach. corperformance was founded in 2006 and the man behind itjoins us now. founder & chief executive dr adam carey, corperformance is with us now. tell us what this is, we have made the connection between looking after staff at work, tell us about the parallels. it's enormous, we saw england rugby yesterday, you saw guys turning up on the pitch able to perform and you want people turning up perform and you want people turning up at work been able to do the same thing and it's a mind, body and soul approach, it's everything you eat and drink, how you move under cover, how would you sleep and how you think about those things. this business you found it, you were working in the national health service. tell us a bit about your journey and how you got to this particular company that you are running. i was in the nhs for about 15 years and is most of my patients we re 15 years and is most of my patients were there cause of the way they ran lies as opposed to having a medical problem. we were closing the door
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after the horse had bolted and i came out of the nhs and thought can we take people in the workplace and improve their performance and well—being? improve their performance and well— being? we saw improve their performance and well—being? we saw an increasing rise in obesity, stress, type two diabetes which calls businesses of orchard and uninterested scene can we the dynamics. if you make that parallel for example was rugby, was by, parallel for example was rugby, was rugby, international rugby, people at the top of the game, it strikes me they are for a short here cause of the challenge is placed on them and the strain put on them and they have to deliver maybe once a week or once a fortnight. can you compare that to a five—day or 70 a week, nine to fivejob. that to a five—day or 70 a week, nine to five job. those rugby players although they might have to perform on a saturday or sunday at twickenham, once a week once a month, they have to train daily and this is their training on a daily basis that allows them to perform and that is exactly the same as someone in business having to perform at a meeting once a month, you have a management meeting once a month but they get there in exactly the same way, doing things day by
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day. something you introduced for clients who buy into this, companies that take on all your programme, as it were, tell us how that works, it is an apt. it's telling you how to do everything, eat, sleep, perform. you cannot do this in the old—fashioned way which was sit down and talk about it, we have an apt —based product, that foreign—based which uses wearables, mobile devices and blood tests which comes through on your phone and it tells you everything you have in doing and get you to think about things you might like to do stop our employees keen on that idea? i must admit if i was told by the bbc i have to wear an aptand told by the bbc i have to wear an apt and that bit, i do not know how i would react. good question. fundamentally people do this because they want to do it, most of us want to have a better worklife balance, if you're job, you have a task that
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takes four hours and it issued by a virus. if there is one thing that people could change about the worklife balance, how they go about it, what would it be? the single thing i think most people do not do is sleep enough. i can say i do! adam, good to talk to you. yes, i need to change myjob, in that case! you cannot really go for that. now work—life balance is an issue many of us tussle with but in japan, it is especially acute. 0verwork is a serious social problem ? and some people even die of it — this is known as karoshi. mariko 0i reports. it's the start of yet another grinding day for the footsoldiers corporate japan. most commuting to work on packed peak hour trains. it's a work culture where
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the emphasis has long been on conformity, not individualism. many of these people will be making the return journey way past their office hours. for some, the stress gets too much. it's a uniquely japanese epidemic called ‘karoshi', which literally means death from overwork. these were tweets from 24—year—old matsuri ta ka hashi. five days after her last week she jumped to her death. she had only been at advertising firm dentsu for eight months. matsuri's mother has been campaigning to prevent a repeat
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of her daughter's tragedy. from heart attacks to strokes to depression, karoshi cases have been reported for decades. but these tweets left clear evidence — forcing companies to address the issue. her employer, dentsu, has been reforming the way its employees work, including a new rule to turn off the office lights at 10:00pm. the japanese government has also passed a new law to set a legal cap of 100 hours per month on overtime work. but critics say it doesn't go far enough to tackle the fundamental issues. they want harsher penalties for companies and managers who violate the law. dentsu was fined less than $5,000 for causing her karoshi and none of her managers were prosecuted. that report from our singapore
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—based team, such a serious issue and what it means for some people around the world. trevor is back with us, thank you for all your comments. jessica in tokyo says firmly, as a foreign single mum i need to work crazy hours. this is to support my half japanese daughter. the only balance i get is a national holidays like today and during golden week in spring when i get an unpaid holiday. the reality some people around the world is they do not get any lead, they are taking those holidays, public holidays. quite, injapan you have annual leave but you are not expected to
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ta ke leave but you are not expected to take it. it's a cultural issue in some countries, isn't it? its present two years on, you get on by being there first and longest but it means product body is actually quite low. i was reading something saying office worker spends hours a day across to nadine, that sounds quite familiar. some firms have gone entirely the opposite way, they say ta ke entirely the opposite way, they say take as much sleep as you want, we will not take a record but as long as you get your work done, some criticising that because of place exactly to the point you made, you don't want to be off, you want to... i forget who it was, richard branson said my people can take as much time as they like as long as the projects are on time and everything goes well. you cannot be the person to disappear. how you manage worklife balance? i work in the office four days a week, i am at home on friday, i moved to this four de son, three days of four years ago than i had three children under the age of ten.
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i wanted to spend some time with my family. just to be clear, you are four de son, three days of, not not compressing five days into four, or are you? i don't think i am but i am still getting things done. i have such a good team of people in the office. this is the great debate about people who work part—time, they end up working long, fewer days. they might be paid less, they might be paid for three days at the five that they are cramming five days into three. i wouldn't describe it as cramming that you have certain things you need to achieve and you are determined to achieve them over time. and you just less likely to spend an hourat time. and you just less likely to spend an hour at the water cooler chatting. you took this decision, how did it go down, in your industry asa man, how did it go down, in your industry as a man, terry unusual. it is unusual. well, varying reactions. but i think it works, people
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understand that. is there a danger as well then you work from home, this applies to many, you have to be very dedicated to get in the hours you are going to work otherwise you blow all the lines between work and life and you achieve nothing. this is what people say about communication, we have our funds, you can receive e—mails at midnight, you can receive e—mails at midnight, you don't need to read them. in some european countries you are not allowed to send e—mails after a certain length of time. but we are working way longer hours than is being recorded and that's because of technology and i think getting the balance right is so important. absolutely is, what a way to end the programme. i hope you balance your day well. we will see you soon. off to get some more sleep. i wish! after the cloudy, wet and windy
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weather, it's ending on a slightly more settled note. later in the week it will turn milder. to start with, a bit ofa it will turn milder. to start with, a bit of a chill in the air, high pressure dominating in the wind to topple from the northwest, hence prost and is across scotland, the wind bringing showers through eastern counties of england. bringing a cloudy afternoon across east anglia and the south—east but most of the showers fading away, the vast majority dry with plenty of sunshine. some changes in northern ireland and western scotland later, hazy sunshine, patchy rain and drizzle and the strengthening breeze. light winds across the country, temperatures a bit above average, quite a pleasant day for the stage of the month, temperatures between 7—11d for most of us. this evening patchy light rain and drizzle in northern ireland and western scotland. cloud toppling
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southwards and eastwards bringing rain at times to scott and and northern ireland and northern england and north wales. dry weather coming and going. we see clearer skies in central and east areas, you are most likely to see prost. tomorrow high—pressure migrating towards continental europe, a shift in and direction from the south—west, bringing whether france and the cloudy as day of the week. sunshine here and there, the best in the south, sunny spells in scotland and northern ireland, northern england, these areas will see rain come and go during the day, the odd heavier burst. temperatures with the exception of shetland, all of us in double figures. staying in that vein into the second half of the week, the wind coming from the south bringing milder atlantic air, for wednesday, to get us there, patchy rain and drizzle pushing northwards across scotland, clearing, dry, sunny weather, lots more sunshine
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developing especially in england and wales. temperature is still around 10-12d wales. temperature is still around 10—12d for the majority of us. into thursday, after a morning mist and fog, a little bit apache frost, a day we will all see sunny skies and temperatures in double figures. goodbye for now. you're watching bbc news at 9:00 with me, carrie gracie. the headlines: the prime minister says she's prepared to talk tojeremy corbyn about his demands over brexit as some of her own backbenchers continue to call for changes to the backstop. if we can come out of the backstop, we then have the chance, i think in the next stage of the negotiations, to do genuine globalfree trade deals. the senior police officer in charge of preparing for a ‘no—deal‘ brexit has said there's a risk such an outcome would leave britain less safe. we will still be there using all of the tools available to us to keep our community safe. but it goes without saying, these processes are slow, more bureaucratic, they are clunkier. a call for younger women
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