tv Business Briefing BBC News June 26, 2019 5:30am-5:46am BST
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this is the business briefing. i'm sally bundock. dialing up the trade war. as china's big telecoms and technology showcase gets underway, the us china dispute casts an ominous shadow. san francisco becomes the first american city to ban the sale of e—cigarettes but will the new law stub out a growing industry? and on the markets: the holding pattern continues you can see a trend emerging in asia after losses on wall street.
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we start with one of the world's biggest tech events, mobile world congress, which is getting under way in shanghai. with technology at the heart of the us—china trade war it's difficult for the 60,000 delegates to get away from the tensions it's causing whether that's around 56 telecoms, artificial intelligence or big data. that trade war has led to tariffs on more than half the goods the world's two biggest economies sell to each other. and the us is threatening tariffs on another $300bn of goods which would hit consumer products, including the electronics on show in shanghai. the us has also effectively banned telecoms giant huawei over security concerns. it's one of the biggest firms at the show and has recently said it
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expected that blaclisting will cost it $30 billion worth of sales over two years. america's biggest tech comapnies are also being hurt by the trade war. apple says any further us tariffs against china will weigh on it's global competitiveness. that could lead prices to rise by 15%. but there's optimism for some. china's zte had a us ban for breaching sanctions laws overturned last year after president xi convinced president trump to do so and it hasn't looked back. 0n the eve of the event it announced 25 contracts around the world to supply the sg kit it's going to be showing off. last week a senior us official laid out to the bbc some of their concerns about chinese firms dominating the 56 technology race. we are concerned in particular about
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it becoming the backbone for 56 in the mobile revolution. telecommunications is the way most of us run our lives these days, we are concerned given the authoritarian nature of the chinese state, given their ability to pressure and control companies especially companies of that size, that they will use huawei as a tool of either surveillance or distracting communications capability were needed. thomas gift is a lecturer in political science at university college london. good morning. it doesn't matter how you look at this event in shanghai, the dispute between the us and china, the trade war, the impact thatis china, the trade war, the impact that is having on tech companies is going to dominate, isn't it? we are seeing a ratcheting up of tensions leading to the 620 summit in osaka. this is coming on the heels of 25% ta riffs this is coming on the heels of 25% tariffs on $200 billion worth of goods last month. threats to impose 2596
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goods last month. threats to impose 25% tariffs on a 20 —— $300 billion worth of goods shall hit technology companies. for the tech firms, many of whom are displaying the latest wares in shanghai, their supply chains are so integrated and global that these tariff disputes make the situation ready jarecki for them, doesn't it? they can't avoid it. this tariffs could lead to almost total decoupling of tech firm industries and it's really going to upend supply chains and it could lead to global cooling of the economy, both in the united states as well as china and east asia. when think it could go if trade talks between president eugene ping and president trump don't lead to anything, there is the fear that the ta riffs anything, there is the fear that the tariffs will be increased big—time. apple has warned about the impact.
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—— president xi jinping. apple has warned about the impact. —— president xijinping. in the meantime, it's try to look at alternative options wrapping up manufacturing in vietnam, and india, given the complexity and scanned —— and scale of operations it's very difficult to do in short—term. and scale of operations it's very difficult to do in short-term. we are reading as it has been reported in the new york times, they are not naming of individuals who are saying this apparently us chipmakers are getting around these bands, they are selling millions of dollars of adducts to huawei despite the ban. they're finding ways around it and thatis they're finding ways around it and that is one of the unintended consequences. it shows a difficulty the trump administration is going to face clamping down on companies at a few as threats to national security. responses have been mixed, something that this violates as a spirit of the law, others suggest that this might actually lessen the blow on
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some of these microchip manufacturer's. thank you for your thoughts on that, we will have more on that later on that particular event, but now, san francisco has become the first us city to ban the sale of any cigarettes admitted the growing concern about the effect on health. —— e—cigarettes. the city voted to ban the sale of vapourisers and made it illegal for online retailers to deliver to addresses in the city. it raises the prospect of other parts of the country making similar moves against the still emerging industry. cody 6odwin has more from san francisco. the reason san francisco voted to suspend the sale of electronic cigarettes include a lack of approvalfrom the cigarettes include a lack of approval from the us cigarettes include a lack of approvalfrom the us food and drug administration and the rising popularity with young people. the city attorney issued a statement saying the ban wouldn't be necessary if the federal government had done itsjob. if the federal government had done its job. these cigarettes are a product that i live not allowed on market without the review. this is not a permanent ban, that lack
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necessary approval is —— are eligible to be sold again once are deemed safe. the san francisco —based dual labs is one of the biggest companies that will be impacted by this legislation. they say it will drive for my adult smokers who successfully switched, back to deadly cigarettes. another reason san francisco voted in favour of the ban is to combat the epidemic which many parts of the us struggling with. there was an increase in the use of e—cigarettes among people aged 12 to 18. this the first band its kind in the us and only applies to the city of san francisco so customers over california's legal age of 21 will still be able to buy this product in surrounding cities. san francisco's mayor has already expressed her support for the ban and is now —— has now ten days to sign legislation. if you does, it will
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come into force injanuary. —— if it does. trade is one of the many issues on the table when the us secretary of state meets india's prime minister in a few hours time. narendra modi's government is trying to use india's status as one of the world's fastest growing economies to boost domestic manufacturing. but it's been criticsed as protectionist over the import tariffs that it's imposed to acheive this. as part of our global trade war week sameer hashmi reports from uttar pradesh on whether the tariffs are hurting foreign companies operating in india. this is one of several chinese companies choosing to manufacture and —— manufacturer in india. due to ta riffs and —— manufacturer in india. due to tariffs on foreign—made goods, it is cheaper to make in india than import goods made also. the best manner factoring seems to be paying off. more than 240 plans like this have opened up across the country since 2014. experts say it won't happen
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anytime soon. this manufacturing has raised lots of money, it is now 20 three or $24 billion was not well waiting for a period where the manufacturing touches 60 or $70 billion was about that time, the policymakers will realise that now this is a reversible process and ta riffs this is a reversible process and tariffs are meaningless. it is not just mobile phones. 0ver tariffs are meaningless. it is not just mobile phones. over the last couple of years, india has raised input tariffs on a range of other products from electronics to textiles. the tax on foreign—made refrigerators and air conditioners has gone up to 20%. many countries have criticised india for rising this. japan has filed a complaint against india for continuously raising duties. india, which is the tariff king,. president trump has
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called india out was policies. just this month the and india's preferential trade status for not honouring the code to access to indian markets. it does look like raising tariffs is protectionism but it is also really, in the heart of trade negotiations, if the us and china agreed to particular trade agreement, it is going to become the template for the rest of the world. many experts say that india could stand to an effort from foreign investment as a result of the us— china trade well. but there are concerns that with so many duties and tariffs in place, india may not be able to take full advantage of this opportunity. now let's brief you on some other business stories. the head of the us central bank jerome powell has used a speech to stress its independence. it's widely expected to cut interest rates soon and has been under pressure from president trump to do so.
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speaking in new york mr powell said the fed remained focused on the economy's long term health but added there was growing concern about the outlook for the global economy. his comments moved markets, a broadband share prices on wall street the night before and has really caused some has as for trading in asia today as well. you are up—to—date on the business stories.
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mps launch an enquiry after the jeremy kyle show was cancelled. thejeremy kyle show was described by its bosses today as conflict resolution. critics say it was all conflict, and no resolution. he's a lying, cheating, horrible person. the show is no more. steve diamond was found dead in his flatjust a few days after appearing on an episode that was never broadcast. diamond had failed a lie detector test, one of the pillars of the show. i was telling the truth. the test says you're a liar. executives responsible for the show admitted today they didn't know how accurate the tests were. you can't define what a high level of accuracy is. not 100%, but 50% is not 100%. i'm not a lie detector expert, so what we would do is... no, but you are responsible for this programme. we've now cancelled the show, as you know, and i will say that we will not commission show in the future in this way, in this format, using lie detector tests, for the very reason you've just highlighted, which is the ranges — it depends on who you talk to.
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i find your answer slightly puzzling, because on the one hand you say they've done nothing wrong, on the other hand you're saying we're never going to do that again. itv say the jeremy kyle show served a proper duty of care and helped hundreds of people, and was loved by many thousands more. but the radical implication of their decision to end the show is that, even for a commercial broadcaster, mere popularity is never enough. what i would say is, if anyone raises an issue or concern or a complaint that is not resolved satisfactorily, they are referred to 0fcom. love island is a huge hit for itv, with a massive following amongst younger viewers. in a culture where everything is on display, all broadcasters are reassessing their duty of care. amol rajan, bbc news. this is the briefing from bbc news. the latest headlines: forecasters warn of a "heatwave
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hell" for europe with record high temperatures expected. the us house of representatives approves a $4.5 billion aid package for migrant families at the border — after an outcry over children held in squalid conditions. now it's time to look at the stories that are making the headlines in the media across the world. we begin with the race to become conservative leader. the daily mirror covers boris johnson's radio interviews and his refusal to answer whether or not the picture of him and his partner were staged. that's a photograph of them looking adoringly at each other in a beautiful country setting in the summer. that was on the run pages yesterday. —— front pages. the washington times covers jared kushner‘s appeal for support for his plan for the palestinian territories. the plan was announced by at a conference in bahrain and has been criticised by palestinians.
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the huffington post has a profile of the brazilian football legend, marta. it criticises brazilian footballing bodies and fifa for the lack of investment in women's football. in the uk, the times reports on the education secretary saying that every child will have lessons on same sex relationships before they leave school. and in the guardian is a report on the development of a male contraceptive. it's a gel and is said to avoid several unpleasant side effects such as low mood and weight gain. low mood, what does that mean? laughter. we will low mood, what does that mean? lau6hter. we will unpack that in a moment. ian anderson is back. i am glad you are a communication specialist because a lot of the stories are about the message,
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