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tv   BBC Business Live  BBC News  February 28, 2019 8:30am-9:01am GMT

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you're watching bbc news at nine with me, annita mcveigh. the headlines: the summit between donald trump and kim jong—un comes to an abrupt end. this is business live from bbc news the president says no deal with maryam moshiri and ben bland. talks between the us and north korea break up without a deal was reached in vietnam. on pyongyang's nuclear programme. basically, they wanted the sanctions lifted in their entirety and we couldn't do that. we'll assess the diplomatic and economic fall—out. live from london, that's our top story on thursday 28th february. up to 27,000 children have been recruited into gangs in england. the children's commissioner says criminals are using sophisticated techniques to recruit them. india demands the release of a pilot shot down by pakistan as international leaders urge both countries to show restraint over kashmir. jeremy corbyn says labour will back another eu referendum despite the early end after his party's plan for brexit of the talks, both sides say was rejected by mps. they hope to make more progress in the coming months. also in the programme: washington says it's suspending the planned hike in tariffs on chinese goods. we'll cross live to our asia business hub to find out more.
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european stocks are open and they are down, no doubt reacting to the early end to those talks in hanoi. inspiring the next generation of story tellers. we'll meet the woman hoping to turn out wordsmiths galore, courtesy of machine learning. and today as a uk start—up launches satellites aimed at bringing internet access to the whole world, we want to know what difference fast internet access has made to you and your business. or is broadband still patchy where you are? let us know. just use the hashtag bbcbizlive. hello and welcome to business live. it's thursday. a summit between us president donald trump and the north korean leader kimjong—un has ended with no agreement after the us refused north korean demands for sanctions relief. the pair had been expected
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to announce progress on denuclearisation. the original white house programme for the day had planned for a joint agreement signing ceremony as well as a working lunch for the two leaders, but both events have been cancelled. let's get the latest from lucy hockings who joins us now from hanoi. bring us up to date with what has happened today. we were not expecting this, where we? we were not. what a roller—coaster of a morning it has been here in hanoi. you mentioned lunch being cancelled. it goes further than that. president trump is already on his way to the airport. he has given his press conference and he is leaving town. we started the day with some pictures of the two leaders. want that the chemistry that we saw last
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night and that the chemistry that we saw last nightand in that the chemistry that we saw last night and in singapore was still there. there was an expectation that we would have a signing of some sort this afternoon, decoration and a press c0 nfe re nce , this afternoon, decoration and a press conference, and the two leaders would enjoy a vietnamese lunch together. while not seeing com plete lunch together. while not seeing complete and verifiable denuclearisation, we thought we would see something on the path towards that. we thought there might bea towards that. we thought there might be a peace declaration on the korean peninsula and the setting up of various things like liaison officers. but instead none of that. the cancellation of the lunch and then president trump appearing at a press c0 nfe re nce then president trump appearing at a press conference saying that it is off. sometimes you have to be prepared to walk away. what is interesting, we all know that president trump sees himself as being the ultimate deal—maker. on this occasion, it is being seen as a massive diplomatic failure and really quite humiliating for president trump, the fact he hasn't been able to pull this off. lucy, thanks very much. lucy hocking is in hanol alison evans is a senior asia—pacific specialst at ihs markit. we have already seen the market is beginning to react, particularly the
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south korean one down because of the failure to reach an agreement. this is not going to do anything to calm the nerves of investors, is it? i think the positive takeaway from this is that president trump and mike pompeo were talking about talks going forwards. again they also talked about tacit agreement that will continue, like the ongoing moratorium on nuclear missile testing in korea. and we have also seen testing in korea. and we have also seen an testing in korea. and we have also seen an impact on the dollar which has fallen as well. i think this does play into other things that are happening in the domestic context of the us. we have obviously had michael cohen come out, and trump is looking forward to his 2020 campaign, while also trying to negotiate trade deals with china. say for us president donald trump, this is one element in a series of things that he has got to deal with at home. it is interesting that there was talk about the us possibly lifting sanctions if they could reach agreement on denuclearisation.
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that would have made a huge difference to the north korean economy. it looks like that is certainly off the table for the moment. first of all i think it is important to try and distinguish between us unilateral sanctions and security council sanctions from the un. sanctions implemented by the un would need to progress on human rights issues. even if there had been progress at the summit, there is probably would not have been relaxed. the us could have made changes and exceptions to travel bands preventing humanitarian work is going to north korea, for example, and it could have encouraged some exam since the north korea — south korea projects going ahead. that would have been smaller that it would have had a significant impact on north korea this year. also president trump had hinted at possible economic benefits of some deal being done eventually. and
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potentially opening up the workforce in north korea and perhaps undercutting some of its regional rivals and neighbours. yes, i think that was definitely a long—term vision, not something that would have happened in the coming year or three. it is important to remember that although us president donald trump talked about that, north korea's main trading partner is china and the majority of its business still occurs with china. whatever us president donald trump talked about would have to be prevented in partnership with china. alison, thank you very much. alison eva ns, alison, thank you very much. alison evans, giving us the economic implications of that failure to reach an agreement at the hanoi summit between us and north korea. there is more on that story on our website and on bbc news throughout the day so with us. —— it so stay with us. let's take a look at some of the other stories making the news.
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proposed rules restricting immigration by lower paid workers after brexit will decimate factory workforces, according to the uk's main manufacturing association make uk. it warns that plans to introduce a £30,000 minimum salary, roughly $40,000, threshold would have disastrous impacts with some 88% of skilled workers not receiving that level of pay. british airways and iberia owner international airlines group has reported a 9.8%jump in profit to 3 billion euros in 2018. the boss of iag, willie walsh, said the good performance came despite rising fuel prices and air traffic control disruption. but the group warned there would be no growth in 2019 as earnings would still be in line with last year's results. a rocket carrying six satellites for the company oneweb has blasted off from french guiana. it's the first step in a plan to give millions of people in remote and rural areas high—speed internet beamed down from space. oneweb aims to have global broadband coverage in 2021 from about 650 satellites.
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but several rival firms say they are not far behind. the us trade representative says washington is formally suspending a scheduled tariff increase on chinese goods until further notice. it follows president donald trump s decision to delay his friday deadline for a us—china trade deal. monica miller is in singapore. monica, do we get any more of an insight into why things go next, given that they have suspended its plan to raise the tariffs? robert lighthouse told congress yesterday that it will take a lot more than just promises from china to end this tit—for—tat between beijing and washington, dc. president trump's top trade negotiator says there will bea top trade negotiator says there will be a long road ahead. even though this happened as the us has
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suspended the entries on tariffs from 10% to 25%. however we have got to remember that the 10% on $200 billion worth of goods is really having an impact. wejust billion worth of goods is really having an impact. we just heard from china today in terms of their production numbers and they are at their lowest point for a third straight month, showing that the chinese economy is actually starting to feel the pinch. and this is a night of their own economy starting to slow down. monica, thank you very much. asian stocks fell on the news that the us—north korean summit in hanoi was ending early. it affected confidence late in the trading day. that is the dowjones. and european stock markets are down as well. and samira hussain has the details of what's ahead on wall street today. on thursday, we'll find outjust how well the us economy did in the last three months
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from october to december. the commerce department will release its latest gross domestic product or gdp numbers. now if you're wondering why it seems these numbers are coming out a little later than usual, well, the government shutdown had delayed the data by a month. now, some economists believe that the gdp growth will come in at around 2.3% in the fourth quarter. also happening on thursday, retailer jcpenney will be reporting earnings. now, the company has been actively cutting costs by closing stores and it's trying to better control their inventory, so they can avoid excess discounting. joining us is sophie kilvert, senior investment manager at seven investment management. good to have you with us. some disappointing data from chinese factories adding to the worry that there could be a global slowdown at there could be a global slowdown at the early stages. that is right. we know that china is gradually slowing down. they are desperately trying to
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avoid this hard landing. we had a chinese pmi figures, the purchasing manager's figures, which came out at 49.2. anything under 50 counts as a contraction. obviously the chinese economy is contracting and slowing down. we know that it has come from a very high growth rate and they are gradually trying to change the way the chinese economy works, so it is more focused on services and their own chinese consumer rather than busily making things for export. that is a change they have got to come through but that is reflecting generally the world economy. we know that growth is moderating around the world. last year we were talking about synchronised global growth and it was brilliant but we know that can't go on forever and we have had a pretty good run since the end of the global financial crisis, since 2009. in light of all of that we have the us gdp figures coming out later and what are we expecting from the world's largest economy? we slower growth in the us as well. last year we had the impact of an
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expanding us economy and unemployment being very low. we also had the trump tax cut which gave consumers a big gift and they were happily spending. we know the us economy is slowing but it will still grow between 2% and 2.5%, which is not bad in the recent context. it is not bad in the recent context. it is not a recession, just a slowing economy. thank you very much. you are coming back soon to talk through the papers. we will see you soon. still to come: inspiring great storytellers. like you and me! we'll meet the woman using machine learning to try to boost childhood literacy. you're with business live from bbc news. over the past few weeks we've been travelling around the uk seeing how people are preparing for brexit. this morning, ben thompson is with farmers in the brecon beacons. that is where he likes to be. good
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morning from the brecon beacons, on the next stop of our road trip talking about brexit and what it could mean for different businesses up could mean for different businesses up and down the country. this morning we are talking about farming because it is lambing season. 600 new lambs born on this farm in the last few weeks and 600 more are due. all sorts of concerns for business about brexit, be it access to labour, tariffs and trade, and where will they sell these products, and what does it mean for the subsidies they have been used to? paul is a farmer in north wales. good morning. you still have a lot of sheep on your farm but now you have a lot more beef cattle. why that change? it is all to do with economics and
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the costings of both enterprises. the sheep side is very labour—intensive and it tends to be a lower profit. we were looking at the business, but the referendum came along and that really sharpened our focus on came along and that really sharpened ourfocus on our decision came along and that really sharpened our focus on our decision really. what other things that you are most worried about when it comes to brexit? there are so many things that affect you, labour, tariffs, subsidies, where you sell stuff too. what are you worried about? significant number of welsh sheep are exported to european markets had anything that would block or cause friction for that trade would have a profound impact. there is also an excess of labour, not only in the sheep sector, but horticulture, and across agriculture. it is vitally important. where will we get that labourfrom? important. where will we get that labour from? i important. where will we get that labourfrom? i am not sure. important. where will we get that labour from? i am not sure. paul referred to the french students working here. they are here for three weeks as part of an exchange programme. they come on european union subsidised exchange scheme and they have been coming here for 20 yea rs they have been coming here for 20 years to help out on farms like this. this year is the last year that they will come here. lots of different impact on the farming
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industry and some with a big impact and sometimes smaller, but nonetheless uncertain times for uk farming. more news throughout the day updated on the business live page. rolls—royce reported a loss up to the end of december of £3.9 billion. you're watching business live. our top story: a summit between us president donald trump and the north korean leader kim jong—un ended with no agreement after the us refused north korean demands for sanctions relief. the two sides say they hope to make more progress towards a deal in the coming months. a quick look at how the markets are faring. european markets all down as investors were rattled. you've probably heard lots about fintech recently, but what about edtech? it's where education meets technology, and one firm in this
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growng sector is mrs wordsmith. it's mission is to help children to build up their vocabularies and tell better stories. mrs wordsmith says it uses data science to identify the 10,000 most academically relevant words — complete with illustrations. it was launched 13 years ago, by ceo sofia fenichell from her kitchen table. recently, it recently raised $11 million from investors to expand into the us and china. sofia fenichell, the boss and founder of mrs wordsmith, joins us now. we could say mrs wordsmith herself joins us here. good to have you with us. where did the idea come from? from personal experience? three yea rs from personal experience? three years ago the company was founded, kitchen table story at home because i was trying to help my own children. when i didn't find things on the market to do that i decided to do that myself as one does. what did you think was missing in the
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market that you could feel? for children to improve, all the research suggests this, their writing and reading comprehension skills, they need to improve their vocabulary and built up a rich arsenal of descriptive vocabulary. there was nothing besides flash cards and a box, with no illustration and engagements, just rote learning. i wanted to bring more creativity and storytelling joy into it. bear with us a minute, we will go to live pictures, which we are seeing now. this is air force onejust taxiing are seeing now. this is air force one just taxiing on the runway, presumably about to leave hanoi with president trump on board. this is after the talks with the north korean leader, kim jong—un after the talks with the north korean leader, kimjong—un own ending earlier than expected. we saw president trump give a lengthy conference saying the two sides had failed to come to an agreement over theissue failed to come to an agreement over the issue of north korea... they
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wa nted the issue of north korea... they wanted all sanctions to be removed but the us said it couldn't do that and president trump said he didn't wa nt to and president trump said he didn't want to hurry a deal, he would rather wait and get the right deal. on the us side, they also said north korea was not ready to meet their demands on denuclearisation. as we saw a moment ago, air force one heading back to the us with the president on board. let's get back to you, sofia, one of the words you have on your calendar is the word "feud" which might be pertinent. how do you choose what to include in your dictionary and what words matter? a very relevant question. we choose words according to cultural releva nce choose words according to cultural relevance today and data science. we have mined the english language for what is current and what is in high frequency of use and also what is challenging for children in a given
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age group. we have a machine learning tool which knows what age a child should be learning a wide and we use computer science to help describe a word. in the case of feud, long—running and vicious is the relation. sounds like you and me! laughter a quick point on spellings. yes. you sell these in the uk and us, there are big differences in words, favour, colour, do you make sure eve ryo ne favour, colour, do you make sure everyone gets the right addition, the uk english addiction! we all know british english is better than american english. -- english edition. i prefer american english, but people are very opinionated about whose english is better. so we create two editions. one in american english and one in british english. we have had customers e—mail us to say they love the british english in america, because it sounds very posh and could they please have that volume. equally, we had customers
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e—mail us to say, please don't put words like loo and cheeky in my dictionary. loo and cheeky it's like they are describing you, ben! china isa they are describing you, ben! china is a market for you now. you were showing us in the green room that you are doing a kind of chinese — english dictionary for chinese children. how does that work? there isa children. how does that work? there is a small bit of technology in this which we are very proud of. we basically illustrate language. we create a bilingual edition. but because wechat it is very popular in china, we use qr codes and you can use your wechat account or your iphone app to the page and it will pronounce the word for you and focus on the graphene is, it will give you a fanatical pronunciation. it makes it easier and more fun and it is exciting for little kids to shine things up to the book and hear it
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pronounced —— phonetic pronunciation. are these aimed at schools or parents? good question. right now, they all cost about $20 or £20. we've brought down the prices every single year since we've beenin prices every single year since we've been in business as our volumes grow. over the next few years, they will come down a lot again. we are trying to make them more and more affordable. i can hear ben frantically trying to find a word to describe me. i found frantically trying to find a word to describe me. ifound one! which camera? camera three, here we go! that's the word for maryam! awesome. thank you so much. the illustrator is the same guy who did hotel tra nsylva nia is the same guy who did hotel transylvania and madagascar? the magic of linkedin! ijust started on imdb looking for great artists. i realised we needed someone from hollywood because it is a global language, there is a lot of humour and adults appreciate it as much as children and it brings the family together. i loved his work so much
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andi together. i loved his work so much and ijust together. i loved his work so much and i just e—mailed together. i loved his work so much and ijust e—mailed him and i said i wa nted and ijust e—mailed him and i said i wanted to create the pics of literacy and he said i'm in. isee wanted to create the pics of literacy and he said i'm in. i see a tv show coming in. —— pixar of literacy. i meant this one for maryam instead! so funny. not true! so lovely to have you on, thank you very much. stay where you are. 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 bbc‘s business live page. there's insight and analysis from our team of editors right around the globe and we want to hear from you. get involved on the bbc‘s business live web at bbc.com/business. on twitter we're @bbcbusiness and you can find us on facebook at bbc money. business live, on tv and online. what you need to know when you need to know.
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we are asking you for your thoughts on this, the satellites being launched by uk start—up. it can reach all parts of the world. rural villages to deserts and 2021 they should have full coverage. right in the middle of the city centre, i can't get fibre broadband, we have to pay for a leased line as businesses can't survive on dial up. james says this has a huge impact on things like the finance sector all over the world. not just things like the finance sector all over the world. notjust finance but also small businesses are struggling in areas around the world that perhaps don't have that level of communication they need to run a business. joining us is sophie kilvert, senior investment manager, seven investment management. how important is fast internet access for running a business?” don't think businesses can survive without it, it's vital. difficult if
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you are in a rural area or developing country where you don't have the same sort of access to high—speed internet than you might do then that person unfortunately didn't get in the city centre. you become used to it. interesting in terms of satellites because there is an argument to say there are lots of satellite up there already, it's a saturated market so to speak. they seem saturated market so to speak. they seem to be the first company to be able to do this although their competitors aren't far behind but it's a uk company, based in west london. they have 70 uk and employees. coca—cola is a back as well. if they can get the satellite up well. if they can get the satellite up there and get it working, it should be a good success story —— is a backer. getting a decent connection is one thing, but actually, sites are working when you have the connection is another, this isa have the connection is another, this is a story on the bbc news website, bank customers hit by dozens of it shutdowns last year. this is according to new figures. as you do become more used to internet access, to become something you rely on and
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you expect it to always work. when it doesn't, it becomes a real shock. we saw with lloyds tsb, when they had their big software glitch, which meant that people actually couldn't access their own money, people rely on it may be too much and actually they don't have another solution. you expect the internet to be there for you these days and when it's not, that causes problems. the fact that there are so many it outages in banks, that can be an issue. like my mum for example had no problems because she banks at her local branch. lovely to have you on the programme, thank you forjoining us. old check but, that's the way to do it. oh dear, we are going back to the 90s! that's it from business live today. there will be more business news throughout the day on the bbc live web page and on world business report. we'll see you again tomorrow.
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high there, good morning, yesterday, temperatures got up to 14—19 across the uk, that was the last of the warm and sunny days. today and the next few days, well, we are back to normal. the weather will be more in from the atlantic, which is more usual for this time of year. you can see this morning we have this weather front here bringing quite a bit of cloud and also some rain. rain this morning across wales, north west england, eventually across the midlands and southern parts of england getting a few splashes of rain. towards eastern parts, there will be early morning brightness before the cloud thickens up and frog across northern ireland and southern scotland and northern england. that will eventually lift up. it will stay quite cloudy and murky into the afternoon and temperatures taking quite a big dip, compared to yesterday. about 8 to 13 degrees.
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tonight, we continue with a few showers across england and wales. they will gradually tend to clear away. then we are looking at a few clear skies but then mostly cloudy skies really. a bit of mist and murk here and there and temperatures no lower than 4 to 8 celsius. through friday, for most of us, it should be a dry day. we can't rule out the odd shower across the midlands and eastern areas of england. there will be a few brighter or sunny spells but again mostly cloudy skies really, and temperatures will get to about 11 or 13 or 14 celsius, which is still worth mentioning above average for this time of year. into the weekend, this area of low pressure spreading in from the west. bringing a weatherfront, some rain, which will be quite heavy for northern ireland, across scotland eventually and into north west england and wales and south—west of england. an increasing wind for all of us especially around the south—west. some early morning brightness across eastern parts before the cloud thickens up here.
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later in the day, there will be sunshine returning in northern ireland and temperatures on saturday about 10 to 14. that area of low pressure could give us some really strong winds overnight into sunday, across scotland, northern ireland and the far north of england. still a weather front across southern parts, bringing heavy rain throughout the day. a bit of rain throughout the far north of scotland where there will still be blustery conditions. but in between, you notice some sunshine for northern ireland, southern scotland and northern england. maximum temperatures on sunday about 9 to 12 celsius. gone are those temperatures in the mid to high teens and low 20s. back to where they should be. goodbye.
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