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tv   BBC Business Live  BBC News  March 22, 2019 8:30am-9:01am GMT

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you're watching bbc news at 9am, with me, annita mcveigh. the headlines. the eu agrees to delay brexit beyond the 29th of march, after late—night talks in brussels. this is business live from bbc news with maryam moshiri and samantha simmonds. britain buys more time all options will remain open, and the cliff—edge date as businesses warn that neither will be delayed. the eu or the uk are ready for a no—deal brexit. theresa may, who's due back live from london, that's our top in downing street shortly, urged mps story on friday 22 march. to back her deal, but she also offered them an olive branch, after her earlier speech sparked an angry reaction. last night, i expressed my frustration, and i know that mps are frustrated too. they have difficultjobs to do. i hope we can all agree we are now the 12 april is now the new 29 march. confused? well, that's the new departure date at the moment of decision. for the uk to leave the eu only if british mp's reject mrs may's deal again. but her problems in parliament iamat i am at the european council in remain, and delaying the date brussels where doesn't make them go away. indonesia's national carrier garuda says it has asked to cancel a multi billion dollar
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order for 49 boeing 737 max eight jets following the two crashes involving the plane. the european markets have opened and its looking mixed. google has announced it'sjumping into the lucrative gaming market. we'll be joined by our tech guru rory cellanjones to talk through those stories. also today as uk mps prepare to debate the gender price gap, known as the ‘pink tax', on women's toiletries, we want to know whether you think women's products should cost more? let us knowjust use the hashtag bbcbizlive. welcome to the programme. we start with brexit because as you've been hearing the european union has agreed to delay britain's departure date for at least two weeks. the agreement removes the risk of a no deal exit next friday night
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which is a prospect that saw the pound have worst day this year. it provoked an increasingly panicked response from business. firms across europe have warned neither the uk nor the eu are ready for a no—deal brexit, according to a letter seen by bbc newsnight. uk business leaders and trade union bosses united on thursday to call the brexit deadlock a "national emergency" and warn the government against leaving without a deal, saying the "shock to our economy would be felt by generations to come." a survey for factory lobby group make uk found around half a vast majority of manufacturers believe that supporting a delay would be a good thing. a survey for factory lobby group make uk found around half
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of its members believe leaving the eu with no deal would make britain unattractive as a manufacturing location. the society of motor manufacturers and traders says investment in the car industry a key uk exporter almost halved last year to $772 million. with us now is nicole sykes, head of eu negotiations. let's start with a dire warning issued saying the situation is a national emergency, why? business is at the end of its tether. we have gone through anger and frustration, and really, the sta kes a re and frustration, and really, the stakes are high and temperatures are high. brexit is having an impact now on firms and they are saying, come on, get on with it. taking the steps that we did yesterday to call this a national emergency, unite with the tuc, that's pretty unprecedented for us tuc, that's pretty unprecedented for us and communicate the scale of that concern about what is going on in parliament. people are looking on in despair, businesses are looking on, asking when they are going to make some progress. we have two dates,
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april 12 if a deal is reached next week, may 22 if it isn't, does that give you any further clarity?m puts off no deal for a little bit. businesses are concerned that until there is a deal and a plan b, we could just be extending the cliff edge. they are saying, you need to come together as mps and compromise. there is a clear change of approach needed, the current one is not working, maybe we need to get a new mechanism for getting consensus, something like indicative votes in parliament where mps vote on different options would help. we need to make sure that the deal has a majority in parliament, a consensus in the european union that they would accept it, and protect workers and jobs. that's not currently where we are, we don't have the agreement in parliament so maybe we need a plan b. the cbi was one of the business lobby groups who have written to the european commission warning for major disruption if we leave with no deal, you say no one is ready, not the eu
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01’ you say no one is ready, not the eu or uk, businesses are not prepared what could happen if we leave without a deal. why is that when we have had three years of very little clarity, could businesses have done more? they have done what they can, realistically they have spent billions of pounds trying to get ready for this no deal, money which could have gone on growth and jobs. that's true in the eu as well, in terms of businesses that cannot get ready. over here we have thousands of small businesses who only trade with the eu which would face big changes and cannot afford the big changes. that's true in france and the netherlands, companies over there are less ready because brexit is lower down the agenda. this is europe saying, this was an agreement together, we need to make sure that both sides are ready, and we are not there yet. thank you forjoining us. let's take a look at some of the other stories making the news.
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ride—hailing firm uber will list on the new york stock exchange, according to reports, in one of the most anticipated stock debuts of the year. it comes as smaller taxi app rival lyft prepares to list on the nasdaq exchange, which is dominated by tech firms such as google, apple and facebook. uber is expected to launch its initial public offering in april and may be valued as high as $120 billion. commodity giant glencore says it has suspended operations at its mcarthur river zinc mine in northern australia as a cyclone approaches. authorities have declared a state of emergency in the region as tropical cyclone trevor nears. it is expected to bring heavy rainfall and a dangerous storm surge in the coming days. britain's tate galleries have joined the national portrait gallery in refusing further donations from the wealthy sackler family whose company purdue pharma has made billions of dollars from the prescription painkiller oxycontin. purdue faces claims it misled regulators over the dangers of oxycontin, held responsible for helping to fuel
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the us opioid crisis which has led to thousands of deaths, claims the sacklers vigorously deny. more trouble for boeing as indonesia's national carrier garuda says it will cancel an order for 49 737 max 8 jets after two fatal crashes involving the plane. this is thought to be the first formal order cancellation of the aircraft after civil aviation authorities around the world banned it from their airspace. monica miller in singapore has more on this. possibly not coming as a surprise to boeing, but what had their reaction been? the airline spokesperson had said that garuda passengers no longer had confidence in the aircraft. however garuda said they have not ruled out changing, they could change to another type of plane. but it could also be a boeing aircraft. garuda passengers are not the only one to lose confidence in
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the only one to lose confidence in the 737 max eight model, after two fatal crashes, first in october last year when indonesia's lion air crashed into the sea and then that same plane model operated by ethiopian airlines killed everyone on board. boeing said it will start to include safety feature features that planes had not —— airlines had not paid for in their future planes. these planes have been grounded worldwide. the fbi has recently joined ina worldwide. the fbi has recently joined in a criminal investigation of certification processes for these jets. has these had any impact on the share price of boeing at all? the last that i checked, boeing was a chilly having some trouble in terms of its shares. it's been really struggling with these crashes, but also this public
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relations battle that it has. now that the us investigation is going, it could not possibly bounce back any time soon. thank you. let's have any time soon. thank you. let's have a quick look at the markets. a strong showing from asian shares, tech stocks boosting wall street last night. highs on friday after upbeat optimism in the tech sector. in europe, a little bit more mixed. the ftse has opened slightly down but they are relieved that it is the end of a busy week on news. tiffa ny‘s jewellery end of a busy week on news. tiffany's jewellery may end of a busy week on news. tiffa ny‘s jewellery may have end of a busy week on news. tiffany's jewellery may have taken centre stage in the oscars with lady gaga and wearing its products. but
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it has flat growth numbers. if this was a one—off, investors could overlook it but it comes on the heel of week second and third quarters. the market will be looking at the company forecast for the rest of 2019 but the maker of the little blue box already won injanuary 2019 but the maker of the little blue box already won in january that lower spending by chinese tourists and uncertain political situations in europe could mean a couple of very tough quarters this year. richard dunbarjoins richard dunbar joins us. richard dunbarjoins us. welcome to you. i like your type. it's like a jackson pollock painting. very kind! let's talk about the pound, lovely as your tie is. worst day this year for sterling. at the town is performing very well? the best
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performing very well? the best performing currency in the year so far, this is investors assuming some kind of rational outcome, not a no deal. yesterday's news increases a child of no—deal brexit but also increases the chance of a lengthening process, so those competing factors have crossed each other out. the dollar, while the pound has been doing that, but interest rates in the us have been locked down. that in itself is a great environment for emerging markets. that's been the most powerful force in the markets, we spend a lot of time talking about brexit but that cheap money in the us has given huge cover for investors in emerging market with equity and debt, and the stock market and debt markets have been the best performers this year. given that shelter of the weak dollar. your prediction for next week?m terms of the? the dollar and the pound and the currency markets.
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terms of the? the dollar and the pound and the currency marketsm is rational for people to assume we will not get a no—deal brexit and those at low interest rate in the us will hang over the dollar and keep a lid on it. what about the markets? april 12, may 22, lid on it. what about the markets? april12, may 22, more lid on it. what about the markets? april 12, may 22, more will be clearer next week but how do the markets manage yet more uncertainty? more of what we have seen or will things shift? they have managed the uncertainty to well, they have been roaring ahead through christmas, throughout all the chaos we have seenin throughout all the chaos we have seen in the house of commons and the eu commission, they have done well. the currencies have been steady and the markets have been steady. the uk market is very oriented in overseas, so market is very oriented in overseas, so weak sterling has little impact oi'i so weak sterling has little impact on the uk market. we will have you on the uk market. we will have you on in on the uk market. we will have you onina on the uk market. we will have you on in a few minutes to talk through some of the papers. stay with us. still to come, our tech guru will be here to talk to the week in tech.
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following the announcement that google is moving into the lucrative gaming market. a business that has had to contend with supply chain disruption is kfc. last year, logistics issues caused the fried chicken chain to run out of chicken and close some 700 stores. paula mackenzie, kfc‘s uk boss, had a chat with our colleague ben thomspon about last year's ordeal and the impact of brexit uncertainty. did that make you hungry? that week was the worst week of my life! i'm not going to lie, it was really, really tough. many things transpired to mean that we did run out of chicken. but it's really cemented in people's mind is that it's very fresh chicken and you can run out. on a normal day, if i had even five, ten stores closed, restaurants
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closed, that would be cause for concern so to be in a situation where up to 600, 700 of our stores were closing, it totally redefined a bad day. you can't almost understand how awful that was for a business. we are nearly 30,000 people employed by kfc in some fashion across the uk, we were all working 20 out of 2a hours. we didn't see our families, we didn't come home but it's just needs, must. it was all hands to the pump by everyone. what do you want to see with brexit? what outcome would work for you? we can manage through anything, any tariff set up, and any tax structure. any agreement, butjust not knowing what that agreement is causes us no way of planning, no certainty or anyone. all of our chicken on the bone and nearly all of our wings comes from the uk but a lot of our chips for example comes from the continent, comes from europe so we do have to think, what is actually feasible to stockpile in the uk? we like others on the high street
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will be ok for so long but if there is mass disruption for everyone then at some point it does run out. i wonder if ben had a taste of a chicken wing after that? you would have chris mack i would bite their hand off. to get the interview, feed me! —— forget the interview! the town has been opening higher after the news from brexit. this is after the news from brexit. this is after its worst performance yesterday this year. it is up 0.3% against the dollar. a week ago, it had been above 1.38. keep track on the bbc business life web page. the top story, britain buys more
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time as businesses warned that neither the eu or the uk are ready foran neither the eu or the uk are ready for an ideal brexit. the markets at the moment, —— ready for a no—deal brexit. let's have a look at the markets. the future of gaming is not a box, it's a place, says google this week. the tech giant wants to build a virtual stadium for gamers. well, our technology correspondent rory cellanjones is here to tell us more about this story and some of ones you might have missed. they are not offering hardware here, this is just they are not offering hardware here, this isjust a game? this is a revolution that google are promising, and netflix for games. you would be able to play on all sorts of devices with nothing much happening on your device itself, all being done in the cloud. so very sophisticated games hosting on google servers, and you could play them on your tv, your laptop, iphone. you would still need a
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controller? yes, the whole point is that this is taking away, in theory, the console. that has been what people have used for their gaming experiences. we have heard a lot about the death of the console, it has stuck because it has provided the best experience. the key thing is low latency. if you play and online game, you want to press a button and it will be happening insta ntly. button and it will be happening instantly. so google is offering other people's games? the whole point about this is those big titles would appear on this platform. it has got a big job to woo the developers who may wonder whether they want to hand over power to google. there are other big questions on this because it depends on having a pretty good internet connection, pretty fast internet connection, pretty fast internet connection to work. forget me then.
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i'm out! if you think about tv, you need a reasonable connection to strea m need a reasonable connection to stream things like netflix but it's not a disaster if something buffers. but it is disaster if something buffers in the middle of a game, middle of an experience, no good at all. so they have to persuade lots of people that it's worth doing. they have to persuade the industry that google is the right place to do it. google has not always been that great about dealing with consumers. it has its own mobile phones, not huge hits. it's pouring money into all sorts of areas. there have been failures as well successes. why do they need to go into this market? it's bigger than hollywood and the
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music industry and they want a slice of the pie. let's talk about the facebook story, a big story this week in terms of the responsibility that social media platforms have when it comes to information and videos. this is about the video that facebook was criticised that they are —— allowed to spread so quickly. everyday they come out with more information about what happened. the attack was streamed live on facebook. they have said he within 200 people saw it when it happened alive and ably reported it —— nobody reported it at that time. at one person recorded it and posted it on a site called 8chan and that began the process of making it go viral. people are asking, why did your
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artificial intelligence systems are not spotless and take it down? ai is making lots of advances but it is not that good yet. —— why did they not that good yet. —— why did they not spot this? what they do in this kind of case is get a digital fingerprint of this video and take it down, you can do this with copyrighted material, why couldn't they do this with this? they have said that there were a lot of bad actors conspiring deliberately to get the video up there, doing things to alter it a tiny bit or put it in new framing, so that the digital fingerprint no longer works. this isn't just people fingerprint no longer works. this isn'tjust people who were misguidedly sharing this awful video, this is people deliberately changing it so it cannot be taken down easily? yes, it's a bit of a window onto the motivations of the 2.3 billion people who use facebook, some of them will be, as facebook puts it, bad actors. they said in the first 2a hours, they took down
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1.5 million of these videos. 1.2 1.5 million of these videos.1.2 million before they were uploaded, they never actually got there. that means that 300,000 did get through the filters. next week, it is the apple event? yes, a huge amount of build—up. a couple of apple stories, new versions of the earphones and the ipad, but everyone is focused on a big event on monday in california at the apple headquarters which is strongly rumoured, although we kind of know, about a new tv service. apple has been talking about this for five apple has been talking about this forfive or ten years, apple has been talking about this for five or ten years, finally, apparently, they have invested billions of dollars in getting a tv service ready. high—profile invectives recruited, lots of talent employed. —— high profile executives recruited. but we are going to hear about their entry into the tv
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streaming world. we have not had the phone call about the talent! some of us phone call about the talent! some of us have! but we are so... so devoted to public service broadcasting. thanks, rory, thanks! double denim was the dress code on the new york stock exchange on thursday. we should have got the memo, we could have come in in double denim! it was all in honour of levi strauss and co, one of america's oldest brands whose shares soared by almost 32% on their return to the market, valuing the company at over $8.5 billion. the 166—year—old firm has been away from the stock market since 1985. there's been a recent revival in the popularity of levi's jeans. but the firms chief executive chip bergh says the company needs to improve its market share with women. one of the few apparel brands, we are one of the few apparel brands
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where our significantly smaller business is in the women? sector. it's almost a third of our business but it's still significantly smaller than our men's business. we are one in women's denim bottoms globally with a 9% share, so it's a fragmented market. it has been one of our fastest—growing businesses. do you have a pair of levi's? yes, in 1996. have you got any? i grew out of it 30 years ago! never too late! let's talk briefly before we talk about pink attacks, let's talk about over. why is it floating on the new york stock exchange and on the new york stock exchange and on the nasdaq? a broader stock exchange, a greater variety of companies, nasdaq technology focus, the betsy themselves as beyond that. if they do, we are talking at $120
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billion? that is what they hope to get. it has revenues of about $12 billion, does not make any profit so you will need some strong binoculars to see the profit in the future. but we will see. but meanwhile, lyft are launching on the —— nasdaq was like yes, that will set a benchmark for what we value add. let's talk about the pink attacks. not because i am wearing it! m —— at the pink attacks. —— pink tax, this is women? toiletries costing more than men. basically if you buy a shampoo for women, it costs more than men and it is barely any different. we asked viewers to tell us different. we asked viewers to tell us whether or not this was fair and we had quite a lot of tweets. john
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said, they don't cost more, well, they do. but he says that women are prepared to pay more. this one says, shampoo shampoo, shower gel shower gel, stop falling for the marketing. this one says, just use men's products. my husband sometimes uses mind. my husband always uses mine! they have been talking! do you use your wife's? product? why wouldn't you? your wife's? product? why wouldn't you ? when your wife's? product? why wouldn't you? when i and by raises, i feel like i am being —— i you? when i and by raises, i feel like i am being —— lam buying raises, i feel like i'm like i am being —— lam buying raises, ifeel like i'm being taxed. have you ever bought a product because it was pink? yes, i love it. don't use your wife's stuff anymore, will get in trouble!
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thank you for watching, happy friday. some rain is moving its way into the far north west. a cold front will move south—eastward, introducing cooler air into the north—western areas. north—west wales, parts of northern england, the gusts of up to a0 miles an hour. the rain will gradually work its way south and east woods, sunny spells and showers following behind it. ahead of that across most parts of england and wales, it will stay mostly cloudy but there could be some glimmers of sunshine in the
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south—east. temperatures up to 60 degrees. 12 to 15 degrees, turning chillier in the north west. through tonight, the band of cloud and rain moves south—east. the rain all but fizzles away into the early hours of saturday morning. clearer skies behind it, could potentially. wintry showers into scotland, temperatures into two or three degrees. the cold front and the band of cloud will sit across southern areas during the saturday. behind it is where we have colder air which is filtering its way in. it could be quite a disappointing day. a few spots of rain linked in with the cloud. to the north of that, expecting lots of dryer weather, lots of sunshine. much brighter in the last few days. a few showers coming to the north—west of scotland. maximum
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temperatures, ten to 13 celsius. a more chilly day for england and wales. through saturday night, with clear skies, a bit of chilly night, the return of ground frost across many northern and north—eastern areas of the uk. it will be a chilly start for many of us into sunday. plenty of bright weather and sunshine again throughout sunday. even in the south where you had the cloud, that will stick around for a little bit during the morning. tending to clear away into some brighter weather during the afternoon. some wintry showers coming into north—western areas, maximum temperatures ten to 13 degrees. into next week, largely settled and by the end of the week, temperatures will creep up again.
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