tv Business Briefing BBC News June 3, 2019 5:30am-5:46am BST
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this is the business briefing. i'm sally bundock. donald trump is due in london shortly for an official state visit and he's expected to put on more pressure on the uk to freeze out chinese telecoms giant huawei. talking tough over trade — china accuses the us of intimidation as it steps up its retaliation against washington. for that reason alone, markets are nervous as they start a brand—new trading week in the month ofjune. you can see how things ended in the us on friday, and right now it is
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all about declines in asia. in a few hours‘ time, us president donald trump will land in the uk for an official state visit. but it is not without controversy. at a meeting with uk prime minister theresa may, the president will warn britain that security cooperation could be hurt if britain allows china's huawei a role in building parts of the sg network, the next generation of cellular technology. huawei is the world's largest telecommunications equipment maker, and in 2018, it got almost half of its $100 billion annual revenue from overseas markets. last week, the uk's first 56 mobile phone network started operations on a limited scale in some parts of the country. it uses a substantial amount
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of equipment from huawei. but three weeks ago, the trump administration added huawei to a trade blacklist, banning the chinese telecoms giant from doing trade with us firms without government approval because of security concerns. huawei and china have vehemently denied the company poses a security threat. huawei is now also the world's second largest maker of smart phones, selling 59.1 million phones in the first quarter of 2019. much of those sales have been in china and through successful expansion of its business in europe. independent political analyst dr stephanie harejoins me now. she is not part of the bbcjust yet but she is a regular here. nice to see you. give us your take on what
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might go on this week in terms of us pressure on the uk to pull away from huawei. apple has explained, they provide 5g infrastructure in the uk. uk is under pressure now with its involvement with huawei, though donald trump is expected to really tighten the message that has been quite consistent from the us, which is they do not want huawei anywhere ina us is they do not want huawei anywhere in a us network or in the network of its allies. the uk is such a close partner of the us, notjust because of the special relationship but because of something called the intelligence sharing partnership that takes back to the second world war. the us position is we are not secure if we have huawei anywhere in the network. the uk problem is they have huawei everywhere. it has been in the uk since 2005 when it first signed a deal with british telecom ‘s. signed a deal with british telecom 's. already, huawei is providing the sg 's. already, huawei is providing the 5g technology in the uk in cities
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like birmingham, it started last week through the provider of telecom services in the uk. what will that mean going forward when it comes to intelligence sharing between the us and the united kingdom? very important relationship, and those who are gearing up to become the next leader of the conservative party are talking about this and may be changing their tone? it becomes tricky because it a cyber security question or geopolitics question? in the uk they say manage the risk of huawei being the network and keep it out of the centre, the core and confine it to the edge. the us and australia, another partner, both say that does not work in a 5g world, that does not work in a 5g world, that collapses. you cannot have huawei anywhere in the system, it is a risk. what we have seen is the uk might walk back that original position leaked when the former
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defence secretary was sacked, saying they would keep my way in. now we have a new prime minister who will be coming into this country in a few weeks or months and certain politicians have been signalling they might be prepared to walk back they might be prepared to walk back the decision and get huawei out completely. that is jeremy hunt and the home secretary who have both been talking this weekend about that. it makes it very tricky for theresa may, or does it?” that. it makes it very tricky for theresa may, or does it? i think it would be very surprising if theresa may were to commit to any decision at the moment. i think any decision would be punted until the new prime minister is in place. the real question is how much would it cost the uk to remove huawei from the entire country? that is a huge amount of money. in the usa think it will cost $1 billion to get it out and the us is a percentage of huawei. thank you for your time. i will see you soon. let's stay with the relationship between china and the relationship between china and the united states.
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china has accused the us of "resorting to intimidation and coercion" as it beefs up its retaliation against washington over the trade between the two countries. let's go to our asia business hub where karishma vaswani is following the story. good to see you. what is the latest in terms of what china is saying, and also its actions with regards to companies like fedex? yes, there is lots of nervousness out here in asia. you are seeing it reflected on asian markets this morning as those tensions between the us and china appear to continue to escalate. 0ver the weekend i attended a meeting in singapore whether chinese defence minister was very firm when he talked about trade, he made a special mention of it in his speech and he said that the door is always open for more discussions with the united states but that china would not be bullied by the us and that they would fight to the end. you are
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really getting the sense of this sort of nationalistic narrative very much playing to the domestic audience in china about how beijing once this trade war to be viewed. we also had on sunday a white paper released by china outlining its position on the trade war, and no prizes for who they blame for the trade war, sally. they are pointing the finger at the us and they say it is up to the us to keep these negotiations continuing in the right way. having said that, washington has also got a lot of issues are that it wants to outline and get sorted between the two sides. all right, thank you. that is the very latest on that. we will have more honour ina latest on that. we will have more honour in a news briefing. the global media is discussing this as well. now, let's brief you on some other business stories. it's being reported that fiat chrysler is proposing a special dividend and strongerjob guarantees as it tries to persuade the french government to back its proposed merger with renault. the plan would also see the combined
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compa ny‘s operations headquartered in france and the french state granted a seat on its board. more trouble for boeing. the us federal aviation administration says that more than 300 737 max and ng jets may contain improperly manufactured parts that need replacing. all 737 max jets were grounded after two of the aircraft suffered fatal crashes in the space of five months. the first british airways flight to pakistan in more that a decade has taken off from heathrow. ba halted flights in 2008 after more than 50 people were killed ina bombing at a hotel in islamabad. it's the only western airline flying to pakistan. have you ever been tempted to ditch the dayjob and turn your passion into a business? converting that great idea into a great money maker can be quite a journey, especially if you're young and inexperienced. we caught up with one londoner
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who started his business while still at school. i started the brand when i was 15 yea rs old i started the brand when i was 15 years old in secondary school. with literally no funding whatsoever. i had no idea of the fashion industry, no knowledge of it. i started off by literallyjust trying a few designs on paper and at the time i didn't have any money, so i had to literally sell drinks at school to raise a few funds, i made
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£10 a day. it wasn't a lot, but that was the cost at the time for me to print off my first design. i have been talking about it for ages saying, look, iwill start been talking about it for ages saying, look, i will start my own clothing brand, iwill start saying, look, i will start my own clothing brand, i will start my own fashion label. but when will it happen? i printed my first t—shirt, people saw it, people were really impressed with it. i would say the passion is what kept me going in terms of days where times were hard. if you don't have a passion for it, please, do not attempt to do it because it takes a lot to keep going. some words of wisdom. i will see you ina some words of wisdom. i will see you in a moment.
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300 normandy veterans have set off on a voyage to commemorate the thousands of men who lost their lives during the d—day landings of 19114. this week marks 75 years since the largest seaborne invasion in history which changed the course of the second world war. 0ur correspondent robert hall is travelling to france on the specially chartered ship. they were young men when they wrote their last letters home before boarding ships and landing craft for a cross—channel journey into boarding ships and landing craft for a cross—channeljourney into the unknown. now, they are returning, honouring the thousands we never came back and who lie in the cemeteries of normandy. john roberts was aboard one of the naval vessels firing on the beaches, now 95, he says he had to mark this
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anniversary. this was such a huge event for the history of europe, i am glad it is being reunited or reignited so the children know what happened. this is it, they are on the beach. 7000 vessels landed over 130,000 rajesh, canadian and us troops on five d—day beaches. chelsea pensionerjames george has travelled to remember the lost friends from his platoon. he recalls the loss of life on the beach. canadians were laid along the beach and very tidy, a long line of them as far as and very tidy, a long line of them as farasi and very tidy, a long line of them as far as i could see. dead canadians. they had been picked up and laid along the beach. this will be the last time many veterans are able to share those memories. aged between 90 and 101, those aboard the
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ship are determined to make the most of it. robert hall, bbc news in the english channel. and we have breakfast coming up at six o'clock. dan walker and louise minchin will have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: american president donald trump has set off in air force one for his official state visit to the united kingdom. he is due to land in the next few hours. the search for eight missing climbers in the himalayas has resumed after being suspended due to bad weather. germany's governing coalition is dealt a political blow as the head of the junior partner resigns. now, it's time to look at the stories that are making the headlines in the media across the world. the global media is discussing all of those. we start with germany's rheinische post.
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it says the coalition government's wobbling because of the resignation of the spd party leader. bloomberg now, and it's covering jitters over the us economy. it says morgan stanley is predicting a recession within a year if the trade wars worsen. a story from the bbc news app. a graduate who claimed her university exaggerated the prospects of a career has received a payout of some £60,000. 0nto the new scientist, it looks at the new zealand budget statement, which is focused on making people happy, not rich, and asks, will it work? and finally, the daily mirror is among many uk tabloids celebrating a 89—year—old war hero winning the final of the britain's got talent tv show.
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you asking you what your retirement plans are given that he is an absolute success. with me priya lakhani — founder and ceo of century tech — a uk based education technology platform. we have avoided the media looking ahead to donald trump 's visit because we're going to be all over it tomorrow and the day after in terms of the media analysis. we will allow him to land and set foot and then we will creep into the news briefing. we are focused on the german press reaction to this news that the leader at the spd has resigned. it's very critical to the chancellor 's coalition. it is surprising following the european election given that a lot of the big parties didn't do too well. we saw here, was of the liberal democrats do really well and that was on the fire) do really well and that was on the fire ) party developers do really well and that was on the fire) party developers do she decided to step down, she feels she has no longer the support that
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