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tv   BBC Business Live  BBC News  March 1, 2019 8:30am-9:01am GMT

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you're watching bbc news at nine with me annita mcveigh. the headlines: social media firms are told to do more to tackle child grooming, after 5,000 online offences hello. were recorded injust 18 months. this is business live destined to fail — from bbc news with ben bland and maryam moshiri. not—so—open skies... a damning report says problems france and the netherlands face off over the future of air france—klm. with the part—privatisation live from london, of the probation service in england that's our top story on the 1st of march. and wales have cost taxpayers almost £500 million. pakistan is set to release a captured indian pilot as a "peace gesture" today, after shooting down his plane in kashmir. and coming up in a couple of minutes — a special programme where we'll be a tense meeting in paris hearing your views and between the french and dutch finance questions about brexit. ministers after the dutch government we'rejoining forces with bbc radio 5 live secretly purchased a big chunk for a brexit edition of your call and bbc ask this — of airline air france—klm. nicky campbell will be hearing also in the programme... from viewers and listeners financial re—charge: tesla pulls the plug on most of its stores around the world and says it will only sell cars online, to help pay for a cheaper model 3.
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keep an eye on the markets, you're building on an asian rally overnight, despite a disappointing close on wall street. it's been a hectic week of business news, not least because of the brexit debate here in the uk, our economics correspondent dharshini david will be here to help us make sense of it all. also, today is national unplugging day in the us, a day to step away from technology and just relax. will you be turning your phone or laptop off for the day? let us know before you do! just use the hashtag bbcbizlive. if you are doing that unplugging day the one thing you are not to unplug is your television, at least for half an hour! hello and welcome to business live. good to have you with us. we start in paris, where the french and dutch finance ministers will hold what could be a pretty
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tense meeting in the next few hours. they are trying to diffuse a growing row over this: air france—klm, the group formed in 2003 when france's national airline took over its struggling dutch rival. on tuesday, the dutch government revealed it had been stealthily buying up shares in the company — taking its holdings to 14%. that puts it almost on a par with the other top shareholder — the french government, which owns 14.3%. the dutch want more say in how the group is run, especially since klm is much more profitable than air france. and to protect klm's autonomy, specifically keeping key routes at schipol airport in amsterdam. but the french say the management should be left to run the company, without any interference from politicians. they also point to the damage to investor confidence — shares slumped almost 12% on wednesday after the dutch scheme was revealed, and continued to fall yesterday.
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with us now is sally gethin, editor of gethin‘s inflight news. sally, stealth buying up shares, political intrigue in the airline world, what do you make of it all? there is a family war going on inside air france—klm and it has failed over and now they are washing their dirty linen failed over and now they are washing theirdirty linen in failed over and now they are washing their dirty linen in public and it doesn't look good. it doesn't look good to the market. questions are being asked and this is a problem that really should have been addressed internally some time ago. how should it have been addressed and by whom? the klm workforce operating out of the netherlands we re operating out of the netherlands were never happy with the way things we re were never happy with the way things were going. klm produces about three times the amount of profits than air france does and they felt, well, we need more strength and muscle. we need more strength and muscle. we need a fair essay and they were petitioning for their much loved ceo pieter elbers to have his contract
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renewed, which is now going to happen. they felt, we want to further stake in how things are going to roll out into the future, rather than being told by the air france lead management. so how does this leave the company, in what state does that leave the company m, state does that leave the company in, now we have 14% against 1a.3%? they will have to resolve their differences quickly. there will be a meeting today. they will have to be able to find consensus on the growth plan going forward. they are europe's premier long haul carrier and they carried 100 million passengers last year. so there is great benefits for the travelling public in having a very strong airline in that regard, so if they can get together and solve those issues and not be so public about their spat and if air france can accept they have an equal partner at the board table, then it should be much stronger going forward. are the french right when they say they shouldn't be a political thing?
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well, this whole issue goes back to we had two nationalflag carriers initially that have merged. what is happening with this dispute has exposed the rifts and the different national interests. that is a very ha rd national interests. that is a very hard one to be able to address, but they definitely should converge and do better going forward. sally gethin, thank you very much. let's take a look at some of the other stories making the news... computer maker dell says its quarterly revenue was up 9% in its first earnings report since a return to markets. dell came back to the new york stock exchange in december — five years after it was taken private in a buyout by founder michael dell. its shares have soared 22% since then. huawei has reached out to americans in an unusual, full—page advert in the wall streetjournal, telling them: "don't believe everything you hear." in an open letter, executive catherine chen invited us media
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to visit the firm to clear up "misunderstandings" created by the us government. the us has been pressuring its allies to shun huawei equipment on the grounds of national security. japanese car—maker subaru has announced its biggest—ever vehicle recall over a brake light glitch that could affect how its cars engine start. the firm says it is recalling nearly two million of its popular impreza and forester models in the united states and other countries. now, with some corporate new electric car maker tesla has announced it will start selling its entry level model 3 forjust $35,000, finally delivering on a promise the firm made more than two years ago. analysts see the lower price point as being vital if tesla is to become a mainstream car manufacturer. as recently as september, the average selling price exceeded $50,000. dave lee reports from san francisco. when elon musk announced the model 3 back in march 2016,
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he promised he was going to make tesla a mainstream car—maker. well, it's taken a bit of time and there have been some hiccups along the way but, finally, it's here — the $35,000 tesla, which is considered affordable in the world of electric vehicles. now, in orderfor tesla to be able to afford to make it, they're going to have to make some pretty big changes to their business. they said they're going to close most of their 200 or so retail stores around the world, and that means laying off many of those retail staff. a few locations would remain open, they said, but they wouldn't say how many and it's only going to be the most well performing locations that survived that cut. the company also said that it didn't expect to turn a profit this quarter, which is why it had said it had planned to do to investors just recently. that worried investors, sending stock down in after—hours trading. but, long term, the $35,000 tesla should give investors something to be happy about. all elon musk has to do is build enough of them,
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keep the costs down, but not let standards slip. dave lee, bbc news, in san francisco. let's check in on the markets. asian shares moving higher, while strong us economic data lifted the dollar. the gains in asia contrast with a weaker finish on wall street on thursday. better than—expected us economic growth in the fourth quarter had little impact on us stocks. as you can see. gross domestic product rose 2.9% for the year, just shy of the 3% goal set by the trump administration. the reason us stocks didn't respond so positively, they were facing mixed pressure from the mixed m essa 9 es mixed pressure from the mixed messages on trade talks with china and the collapse of the summit between president trump and kim jong—un on denuclearisation and data from china showing the well‘s second biggest economy had a slowdown in
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factory activity. europe picking up on that, all the main indices higher on that, all the main indices higher on the start of the trading day. and michelle fleury has the details of what's ahead on wall street today. apple's annual shareholder meeting takes place this friday. on the agenda, a vote on a conservative proposal to require the board of directors to release ideological information on nominees. apple is against the measure and it has advised investors to vote against the proposal, arguing that a nominee's ideological perspective has no bearing on their ability to carry out thejob. and the american retailer gap has announced store closures, as well as the fact that it's separating its fast—growing cheap and cheerful us brand old navy into its own publicly traded company. that sent its share price up nearly 20% in after—hours trading on thursday. a new, as yet unnamed company, will be formed to include its remaining brands, including gap, banana republic and athleta.
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joining us now is simon french, who's the chief economist at panmure gordon. welcome to the programme this friday at. thank you. let's talk about the markets, we can see behind you, european markets have picked up off the back of a little bit of us stronger sentiment in asia. in the last 2a hours, two different pmi measures out of the chinese economy which is front and centre. the stimulus programme going on, triggered by the chinese central bank is working. both showed a contraction but the better sentiment todayis contraction but the better sentiment today is the second one of those, that focuses on smaller companies in china, suggests the slowdown is easing somewhat. we may see it return to growth next month. this chinese factory data, combined with the failure of the summit in hanoi between president trump and kim jong—un and the mixed messages on trade talks, one minute saying don't
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hold your breath and then saying, things are going well... investors seem to not know what to make of it all. and i don't blame them. the clients we speak to say, look, how doi clients we speak to say, look, how do i price this stuff when we are getting different messages from even the same part of the administration in the us? and what is the dynamic out of china? if growth continues to disappoint, then offer up some concessions to deliver a deal. that said, in trying to understand that this is an issue that will run and run. it's an economic cold war going on. it won't be based on the 1st of march deadline for the increase in ta riffs march deadline for the increase in tariffs or another set of indicators, it will run through 2019-20. we indicators, it will run through 2019—20. we have to be mindful of the presidential election in the us and being bullish on china, trying to squeeze their economic growth will go down well with a certain portion of the electorate. interesting. some people turning to art to invest but we will touch on that later. see you then. still to come... from brexit to a slow
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down in the us economy — our economics correspondent, dharshini david, joins us to make sense of the big economic stories of the last week. you're with business live from bbc news. the scottish salmon company posted record results as the salmon harvest grew in 2018. revenues were up 6% after the company harvested nearly 30,000 tonnes of fish — more half for the export market. craig anderson is the chief executive of the scottish salmon company. hejoins us now. what is behind the figures, what do you put it down to? the export figures are very important. 60% of our production is the export now. mainly to north america and japan and these new markets came within the last two yea rs. we have markets came within the last two years. we have had a steady growth and focus on export of the salmon.
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what are your main worry is coming up what are your main worry is coming up in the future? brexit is around the corner. you large amount of fishes exported to japan and america but what the european export market? the european export market is very important, we export about 25% to europe. when brexit was announced in june 2016, we exported in 2016 several thousand hundred dollars worth of salmon to the united states of north america. in 2017, it was $12 million. in 2018, $19 million. that led us into new markets as well as satisfying the need for our existing clients in europe. these kinds of levels of growth, 6% revenue growth, is that level sustainable, do you think, for the coming year or two? it is with quality products. we have launched
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hebridean salmon, which is unique to the scottish salmon company. everything is from the outer hebrides for that particular salmon and a scottish salmon through and through. so when we compete on quality it means we get export and the uk is important for us in europe. we export to 26 countries worldwide. everyday we are shipping overseas. are 0k, before you go i have to ask you, what is your favourite salmon dish? laughter i like it slightly fried with lemon, fresh lemon on top, a drizzle of it and flash fried. it is as tasty as you like, lovely. you like it simple. fresh is best! my stomach is rumbling thinking of that! so good to be on the programme, thank you. you're watching business live — our top story: not—so—open skies... france and the netherlands face off
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over the future of air france—klm. a quick look at how the markets are faring ican i can tell you air france klm share price has recovered somewhat today was that the last time i checked, it was that the last time i checked, it was up about 2%. were you listening when i told you that? of course, i listen to everything you say! that is what they'll say that not true. moving on... from the slowing us economy to the ongoing brexit contortions in the uk — it's been another busy week in news. our economics correspondent dharshini david is here to look at some of big stories you might have missed. how could anyone have missed the brexit story? what is the latest? of course, we can say we are in the month in which we are due to leave the eu. weekend. 28 days. march already! how time has flown. has anything really change this way? the pound has been at an eight month high. why is that? because markets have been betting there is a reduced
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chance of a no deal in 28 or 29 days' time. they have been watching what has been happening in westminster, the twists and turns. why the relief? this week, we also got some noise from the authorities of what i know deal could actually mean for the uk economy. and it didn't make for pleasant reading at all. the governor of the bank of england said if we do have a no deal, then i will have to do is say inafew deal, then i will have to do is say in a few months' time, i can guarantee you we are looking at a slowdown, even weaker growth than the bank had been thinking. the bank had orally been saying we are looking at our weakest year for the uk since the financial crisis. one inafour uk since the financial crisis. one in a four chance of the economy shrinking over the summer and that is even with a deal. pretty grim words. how seriously should we take him? the comes out and says if we get a no deal, this is what we need to think about and what the impact could be. the noise from that was we are not prepared. the government isn't ready, companies are not ready and consumers are not ready. that
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all adds up to quite a cost. even getting goods across borders, filling in all those extra forms that companies do not do at the moment could actually add about £13 billion to their costs and who will pick up the tab for that and who will bear the brunt of all those delays? it could be quite disruptive. all of that thrown into the mix this week. it has a very real impact. there was a survey this week that showed that some companies, a lot of companies, are holding back on investing and hiring new staff and that is where it really, there is perhaps distant theoretical idea is having a practical effect. it is. if you are a business, are you going to splash the cash right now? we have plenty of evidence, if you have looked at what has happened since the referendum, business investment has underperformed. that throws up all sorts of concerns for the future, because if you think about the uk in particular, a huge problem with productivity. how do we become more efficient as an economy? you need to
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invest in the right kinds of tools and equipment so we can do the job and equipment so we can do the job and be more efficient and therefore we are ultimately more prosperous. the us, the economic figures, what they tell us? i feel like the grim reaper today! laughter it was better news than the market was expecting from the look world's largest economy. the us economy, however, has lost some momentum towards the end of last year. what is driving that? it is the us consumer. it looks like there is higher interest rates and also tax cuts are wearing off. both those things are starting to hit. consumers's disposable incomes have risen nicely at the end of last year but if you look at the most recent few months, things are looking weaker. coming into 2019, we are looking at a weaker picture as well. lovely to have you on, thank you so
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much. in a moment, we'll take a look through the business pages, but first... it's the drug made from a deadly poison which magically rejuvenates the face, or which sometimes destroys it. 0h, oh, no! but the doctor who invented botox never meant it to eliminate wrinkles. did he not? aaron heslehurst explains. wrinkle free, he is! this won't hurt a bit. it is botox. it has changed the face of the world. sorry! but it was invented for something completely different. cross eyed nurse. as san francisco eye doctor, doctor alan scott, came up eye doctor, doctor alan scott, came up with this in 1978 and he used it on his patients. but, guess what? they noticed something else. botox made their wrinkles disappear. doctor scott thought nothing of it and sold his drug to these guys. but just for the eyes. in 1992, two
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canadian... doctors, husband and wife, proved clinically that botox can rejuvenate the skin. but why? it's the neurotoxin and they relax the tight muscles in our face, which cause wrinkles. oh, boy! the american celebrities loved it and they latched onto botox first. nowadays, there are some 5 million botox treatments a year in america alone. botox sales topped $3 billion alone. botox sales topped $3 billion a year. but what about this poor bloke, doctor alan scott? a year. but what about this poor bloke, doctoralan scott? he a year. but what about this poor bloke, doctor alan scott? he got a measly 8 million bucks. i was a pretty good doctor, he said, but i was not a good businessman. you don't say! a bit worrying the way aaron was eyeing up the needle. only one thing more disturbing with aaron with that needle in his hand
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and that would be you! laughter let's see what other stories are being talked about on social media. is it good to take a step back and relax? william says, some of us remember a time before the internet, the piece one used to find sitting on the toilet undisturbed. i have three kids, i don't get that peace and quiet! vic says veryjoined up, stupid that it is advertised on the internet. helen says hard to do on a work day, saturday or sunday would be easy of us saturday or sunday would be easy of us that we had an unplugged day at work and it made so much extra work as we had to print out everything. never again, says helen! another says, what is wrong with tech and why would i want to unplug? simon french is back with us. do you ever unplug from your phone? i doubt it.
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i checked before i came on air and the average screen time i had last week was 11.5 hours. i don't seem to have much time away from that that it's difficult to stop it if people canfind, one it's difficult to stop it if people can find, one of your viewer said it, some time at may bea be a weekend, sometime when you can put it down and had a bit of space away from it. i think it feels better for your away from it. i think it feels betterfor your mental away from it. i think it feels better for your mental well—being if you can. 4.5 hours, you are in good company. we have two tablets, two phones! someone tweeted saying it's more stressful unplugging then it is being plugged in because you are wondering who is trying to get through. i had through. ihad an through. i had an enforced unplugged because i stopped getting signal on my phone the last couple of days. i know, itried the last couple of days. i know, i tried to call you, i couldn't get through, it was horrible! it's funny how much you rely on it and how much you think you can be missing work calls, social calls, the fear of missing out. you realise
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how reliant we are on connectivity and being plugged into all these networks. there are some times when i'm writing research reports and i actively switch technology off because my efficiency goes up, if i can remove the distraction. but you are right, all the various pieces of information we have at our disposal also shows the flip side of that, which is it allows you to streamline some of this content which would otherwise take hours and hours into bite —sized portions. it is a really difficult trade—off to get right. what worries me is young people, teenagers. as adults, i guess we are ofa teenagers. as adults, i guess we are of a certain age or we have lived through a period without mobile phones and social media and tech. for younger people, how do they unplug when their whole social life is based around the internet? unplug when their whole social life is based around the internet7m unplug when their whole social life is based around the internet? it is very hard. at my local cricket club, before we go out to play, constant access to the phone. i try and leave it to one side but you are right, it is integral... also to experiences,
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leisure experiences can you think of it as leisure experiences can you think of itasa leisure experiences can you think of it as a work at all but showing off your experience, your instagram and facebook, so many vehicles by which you can share what you are doing, it becomes integral to the work, to leisure, to your home life. let's move on to a throwback to history, to use the social media terms. this caravaggio which was discovered by accident in a french attic. it goes on sale. these stories keep coming up. the number of multi—million pound paintings that seem to just sit in peoples attic so need to be discovered. really?! i see the stories time and time again. it reads like a john le carre novel, the keeping it quiet and then the controversy the keeping it quiet and then the co ntrove rsy over the keeping it quiet and then the controversy over whether it is genuine or not. i think anyone who bids that this will have to pay big
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money. they will have to take a leap of faith, given uncertainty over whether it is an original or not. the story also talks about the fact that that this housing in toulouse was burgled and the burglars took a lot of stuff, a lot of art deco stuff but missed the caravaggio. they kind of walked past it and didn't give it a second glance. lesson for all our viewers, crime doesn't pay! or a message for burglars, look carefully. burglar tips! this goes on auction later in the month, i think or later in the year. will you be bidding?” in the year. will you be bidding? i won't but there is an interesting angle to this, alternative investment classes. be it whiskey or paintings. there might be a story in it for us, who knows. simon french, thank you very much indeed. have a good weekend. thank you for watching, have a good weekend as well. thanks
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for watching business live. more business news throughout the day on bbc news but from us, happy friday. bye— bye. welcome to the first day of meteorological spring. welcome to the first day of meteorologicalspring. spring welcome to the first day of meteorological spring. spring may have sprung that it is quite cloudy out there today, misty and murky for many of us although later we could see some brightness, particularly across wales and the south—west of england. a ridge of high pressure dominating things through today. this weather system will move its way in later this afternoon into this evening and then we have this low pressure system brewing towards the atlantic. that will affect us as we go through the weekend. through the rest of the day, a bitter brightness across wales and the south—west. elsewhere staying quite cloudy, dry for most of us although they could be the odd shower in
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central and eastern areas. maximum temperature is 9—13. later this afternoon and by this evening, slowly seeing this rain moving through northern ireland. it will spread its way into scotland and eventually push its way through england and wales as we go through tonight. the breeze starting to pick up tonight. the breeze starting to pick upa tonight. the breeze starting to pick up a little bit. with all that cloud and patchy rain, temperatures tonight no lower than 5—8. going into the weekend, it will turn quite wet and windy, particularly later on saturday and into sunday. this is the weather system, the area of low pressure moving its way in for saturday. the white line is becoming a bit closer together. it will turn windier, particularly in the north and west. we start off in a relatively dry notables of any showers clearing away, brighter skies and in east anglia and the south—east, staying dry and bright for much of the day. elsewhere, you can see where the blue moves on, the rain spread into scotland, northern ireland and western areas of england
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and wales. maximum temperatures 10-14. and wales. maximum temperatures 10—14. some strong winds in northern areas, gales and the far north—west, especially through the night into sunday. another little weather feature developing across the south and that will bring some rain across southern england and wales. there is some uncertainty as to how far north this area of rain will be. we think likely across wales, through southern parts of northern england, eastern and southern areas seeing the bulk of the rain. further north, a bit brighter, a few showers in scotla nd a bit brighter, a few showers in scotland and temperatures on sunday about 9—13. into next week, it will bea about 9—13. into next week, it will be a little cooler. temperatures around the average for the time of year and there will be a mixture of some sunshine and showers. bye—bye.
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