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tv   Worklife  BBC News  January 10, 2020 8:30am-9:01am GMT

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hello. this is worklife from bbc news, with victoria fritz and tim willcox. good morning. cashing in the chips. the food delivery wars serve up an $8 billion takeover. live from london, that's our top story on friday 10th january. just eat is just about to be gobbled up by a dutch rival — as our growing appetite for food deliveries cooks up a storm for shareholders. also in the programme — "designed by clowns and supervised by monkeys."
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that's how one boeing pilot describes the 737 max jet — as more than 100 pages of internal documents are released to congress. and — on the tech scene. have you seen the invisible keyboard? samsung shows of its latest invention at the consumer electronics show in las vegas. and we'll be getting the inside track on luggage. it's a huge market, worth more than $49 billion. we'll speak to one entrepreneur who's flying high by capitalising on our travel bug. we wa nt we want to know what you think about that. and also what do you think about new technology in food? let us know — just use #bbcworklife. it's going so well! hello and welcome to your friday edition of
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worklife. are you part of the can't cook won't cook generation? tech is transforming the way in which we order in. its serving up huge rewards for shareholders. and just eat is the most popular thing on the menu. just eat, which operates in 13 countries, looks set to be bought by dutch rival takeaway. com. the deal would value just eat at getting on for $8 billion. within the next five years the total worldwide spend on takeaway food deliveries is set to reach some $200 billion — according to one estimate. sales keep going up, there is an insatiable added —— appetite for this. sales are increasing by around 14% a year — with uber eats and deliveroo among the dozens of companies around the world competing for a slice of the pie. and it's younger customers who are driving the rise of takeaway apps. here in the uk, 18 to 3a—year—olds are now more likely to use a food delivery app than they are to make
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a voice call on their mobile phones. so, let's speak to duvets williams. —— gervais williams. head of equities at the investment firm premier miton is with me now. what is extraordinary is none of these apps are making money. what is extraordinary is none of these apps are making moneym what is extraordinary is none of these apps are making money. it is a business about scale and they have been getting larger and larger hoping the volumes in the network where they start to get a cash payback. i was reading, where they start to get a cash payback. iwas reading, ithink where they start to get a cash payback. i was reading, i think some of them, deliveroo is losing $1 billion a year. when are they going to be able to return this money and will they be able to? it's interesting, if you take the long term models, things like amazon and such like, they were in loss for many years until they got a real scale and now they are dominating the market and very profitable. that's the hope some of these other models get to the same scale. there are two main models, you are either just going to be using the app or you will have a tie—up with the restau ra nts. you will have a tie—up with the restaurants. how will these companies finance and capitalise that from the restaurants when margins are pretty low in most
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restau ra nts a nyway? margins are pretty low in most restaurants anyway? exactly. the advantage ofjust eat as it has 107,000 restaurants already, it has a big market position and it is merging with takeaway.com and that will give them larger scale but ultimately they make money through deliveries and if they get more orders through the app that is what drives the profit and loss in these companies. it always comes down to price, doesn't it? often one burger 01’ price, doesn't it? often one burger or another burger, so long as the quality is the same you go for the cheaper one but the problem is we are in an era of artificially low prices. what happens when they start to rise? will demand a drop off?|j think what they are hoping to do is get to such scale there isn't much competition. the idea is you get to a scale where prices, there aren't many competing prices, you are ultimately able to buy from your local delivery company, and if the price is too high you will go direct. but basically, they hope to outcompete the others by being too large. is that good news for
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customers? it is good news at the moment because blood getting a subsidised burger at the moment, so what we're saying is people will move back to normal prices. there are environmental and other things, over consuming too much packaging, ultimately, that may be a problem we need to address in due course. when you say in due course, what is the time frame? it is difficult to say but they are getting the stage now that they are so large there aren't many more mergers. last night in the us, us operator grub pub in the same industry denying that it was in merging talks, we are getting to the end of this range where the scale is so end of this range where the scale is so large they aim to get cash paybacks but not immediate, the merger doesn't deliver that much profit. do you use them? not really. i have no idea this was as big as it is. really interesting, thank you very much indeed. let's take a look at some of the other stories making the news. chlorinated chicken and hormone—treated beef will be kept out of the uk under any trade deal with the us.
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the environment secretary theresa villiers told the bbc the current european union ban on the two foods will be carried over into uk legislation after brexit. until now the uk has been wavering on the issue, despite huge pressure from british farmers. 0ptimism is growing at its fastest rate in 11 years amongst british finance bosses. that's according to a survey by accountants deloitte. some 53% of chief financial officers at large businesses said their outlook had improved compared with three months ago. that compares with just 9% in the last survey conducted in october. apple enjoyed a surge in iphone sales in china last month — according to chinese government figures. that has boosted shares in the tech sector around the world. iphone sales had been stagnating in china since their peak in 2015 — with serious competition from rival huawei. the us planemaker boeing has released a batch of documents that
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will heap more crticism on it over the 737 max crisis. in one of them, an employee wrote, "this airplane is designed by clowns who in turn are supervised by monkeys. " unbelievable comments in this. the plane has been grounded worldwide since march after two fatal accidents killed 346 people. boeing says the messsages are "completely unacceptable". our business correspondent is theo leggett. theo, this was forced on boeing to be released to congress but it is pretty damning, isn't it? it is damning, not only for boeing but also for the regulator, the federal aviation administration. what it shows that people within boeing, particularly the test pilots involved in the development programme were at times concerned. they were under a lot of pressure to
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keep costs down. there is a particular emphasis on ensuring that pilots who are going to be using the 737 max were not obliged to take simulator training and could simply go through a computer based training course in order to qualify for the aircraft. there were other e—mails shown that pressure was put on airlines to accept computer—based training rather than simulated based training rather than simulated based training designed to give production rates up, keep costs down and get the plane into service as quickly as possible. there were complaints from some members of staff at boeing that managers were focused on the bottom line and didn't understand what they we re line and didn't understand what they were dealing with, always going for the cheapest supplier and that kind of thing. not going down well. certainly not. i want to pick up one quote. honesty is the only way in thisjob. and integrity when quote. honesty is the only way in this job. and integrity when lives are on the line in the aircraft on training programme shouldn't be taken with a pinch of salt. why won't views like that more widely expressed? i've spoken to people in
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boeings, some of whom will not speak on the record, because they are afraid of repercussions and they have pointed to a mentality within the company itself of profits and production over everything. and of people who raised concerns being sidelined, being put under pressure. these e—mails do seem to bear that out to a certain extent. but the regulator doesn't come out of it either and we can see now why the federal aviation administration is being so hard on boeing over the recertification of the 737 max. we are going to leave it there. thank you very much. plenty more available on this story that has just been published 11 minutes ago on the business pages on the website, so head there if you would like more on that story. tokyo is gearing up to host the 2020 olympic games — and like many big companies and organisations there's a focus on sustainability. and it's one the extends to where the athletes
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will sleep at night. mariko 0i is in our asia business hub. cardboard beds, i hope the mattresses are made of something different! yes, indeed! wouldn't you bea different! yes, indeed! wouldn't you be a bit concerned that they might colla pse be a bit concerned that they might collapse while you are asleep? a p pa re ntly collapse while you are asleep? apparently the manufacturer says they can support the weight of up to 200 kilograms, so i guess it's a goodidea 200 kilograms, so i guess it's a good idea if they don't collapse and if they are actually comfortable, because they will need 18,000 beds for the olympics and 8000 more for the paralympics. so, being able to recycle after the events is definitely a good thought. and as victoria said, it is becoming somewhat of the sustainable 0lympics, because remember, all of the medals are made of recycled consumer devices like mobile phones and the japanese teen‘s official uniforms are also made of recycled used clothing. thanks very much, mariko 0i. 0ne hopes comfortable and waterproof. moving the markets, wall street's main equities hitting record highs, middle east tensions
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easing a little bit, and the prospect of a china— us phase one deal on track to be signed next week soa deal on track to be signed next week so a bit of optimism. in the uk, retail woes continue, tale of christmas chaos. joules' shares have plunged by a third after the fashion brand warned its annual profits will be significantly" behind expectations due to supply chain issues that disrupted its trading during the key period. shares in superdry are down by almost 20% after another warning on profits and more tales of disappointing sales. booze fuelling sales over at the discounter lidl. sales up 11% compared to last year. it often comes to the rescue, victoria! well, its a new year, but is there a new direction for the usjobs market? its currently on a record breaking run of monthly expansion. latest figures are out later today ? michelle fleury has more from new york. america enjoyed solid jobs growth last year but it may be running out of steam. in a few hours from now, we'll get the last employment report of 2019.
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the latest data from the us labor department is likely to show that hiring rose by around 160,000 jobs in december, a good number, but a step down from november, that's when the world's largest economy added around 266,000 newjobs. the unemployment rate, well, it is expected to be unchanged at 3.5%. but it is the full—year figure that may raise eyebrows. it is likely to reveal that the pace ofjobs growth in america is cooling. not entirely unexpected in the 11th year of the record long us expansion. nonetheless, it is unlikely to please the president as it weighs on his re—election chances. natalie sourisseau is here to talk through the newspapers. you've picked up on one in white and the fa ct picked up on one in white and the fact biotech is about to take the world by storm. it has been happening already under the wraps for quite some time. we have been
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eating bioengineered food for years or even decades going forwards but now with the climate crisis being ever so prominent, we, of course, have to change the way that we consume and also produce food going forward. these are radical changes, moving away from animal production and very much down the vegetarian line, artificial meat, dairy products as well, are there are some misgivings about this genetic engineering in these foodstuffs? misgivings about this genetic engineering in these foodstuffs7m course, there is many advantages but also some, i guess, consequences of perhaps engineered food, and also bio—terrorism, let's be really frank about that about how much power we wa nt to about that about how much power we want to put into our daily food consumption going forward. and of course, there are always rows about all sorts of things, notjust animal welfare, but whole supply chains. just look at what is going on with chlorinated chicken and hormone treated beef, that ban has been in
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place in the eu since 1995 but it makes a massive differences in terms of economics if those sorts of things aren't allowed to take place. yes and we are already experiencing the trade was going forwards in terms of what is allowed in the country and what isn't allowed in the country so we have to apply a lot more stringent regulations and also policies to monitor that going forward. and also with brexit, of course, we will be outside, whatever europe's decides. what is it that is stopping apples going brown? you can have a permanently green apple? they're using have a permanently green apple? they‘ re using nanotechnology. evenif they‘ re using nanotechnology. even if it is rotten it is still green. i don't necessarily think that's going to be the case. there is a worm in there somewhere! it is not necessarily but apples being green for longer, it has wider implications of the logistics chain going forward in terms of having to reduce refrigeration time that we need and the supply chain being a lot more sustainable.
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exactly. 0bviously lot more sustainable. exactly. obviously it shortens these chains, and obviously it is cheaper to get products across etc. just one of the quick story you picked out in the guardian. new year, new you, new mark zuckerberg, head of facebook. he always outlines his omissions for the year. he's been doing this for ten years. this time he is taking a ten years. this time he is taking a ten years. this time he is taking a ten year view. what is different? he is taking a step back and saying let's focus on the broader sort of like spectrum of experience and singled out artificial reality, augmented reality, as being the number one influencer going forwards. i don't think the technology is quite there yet, we still have the clunky headsets and very obtrusive in our face, but towards the end of this decade we will see incredible advances. and new private social platforms as well. coming from the man who... anyway,
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let's move on. thank you very much, natalie. still to come... we'll be getting carried away with luggage as we speak to one entrepreneur who's flying high from cashing in on our travel bug. you're with worklife from bbc news. recruitment activity picked up at the end of 2019 as employers started to see an end to the political uncertainty facing the country — that's according to a newjobs report. the recruitment and employers confederatoin said permanent staff appointments rose for the first time in a year — but the rate of growth is still historically slow. neil carberry is chief executive of the rec. takeit take it away, victoria. looking at these figures, some cause for
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optimism but pretty historically low trends we are seeing in terms of employment. good morning. that's right but we should remember we have had a long and positive run ofjobs growth in the uk, that kind of increase we are seeing is not a surprise, it is focus, important to focus on the optimism today because the optimism comes because businesses have stopped sitting on their hands in the last couple of months and they see certainty and they are able to invest against that. looking at this, it seems as though there is increased optimism, we had other reports coming in from delight today in terms of optimism from finance bosses, do you think we will see a bit of a pick—up. anecdotally, talking to businesses around the country, we are seeing a broad—based upturn in optimism. a lot of that is about the risk of no deal fading lot of that is about the risk of no dealfading now the lot of that is about the risk of no deal fading now the withdrawal agreement bill is going through parliament. it is also about businesses knowing what the path
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ahead is and when you know the path ahead is and when you know the path ahead you can make decisions, they feel they can start to make decisions they may have been waiting on for a while. yes forjobs but also in other areas, a general sense across the whole of the uk, our survey shows the whole of the uk more positive than last month. but we don't know what the long—term impact will be, do we? that's the trouble, especially in terms of car production and whatever. trouble, especially in terms of car production and whateverlj trouble, especially in terms of car production and whatever. i think that's absolutely right, the critical message we have a government adult of businesses across the country have is, first of all, let's get the long—term trade deal, given the vast majority of our economy is in the services economy, and let's look at the things that will help us compete on the world stage. reforming our school system, getting our tax system for businesses right and building a really good immigration system. one of the things that today cosmic survey shows it is difficult to hire in certain parts of the country. we must leave it there. thank you for your company.
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hello! you're watching worklife. still! a reminder of our top story: takeaway.com has approved plans for a nearly $8 billion takeover ofjust eat as they look to cash in on our growing appetite for food delivery apps. now let's get the inside track on the luggage industry. everything is getting smarter these days ? and its even spreading to our luggage. smart cases are becoming de rigueur in airport lounges around the globe. do you flash your luggage? who knows where you were going with that sentence? no, i don't, actually, tim, i keep it in check. and cases pack a serious business opportunity the global luggage market is set to be worth almost 42 billion by 2020 — according to market analysts technavio. but what is smart these days ? how about compression technology that helps you to squeeze in more clothes without them creasing? the suitcase brand away wants to do more than shake up
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the suitcase industry, it wants to completely change how you travel. maryam moshiri caught up with one of the co—founders to find out how it all started. it all started with a broken suitcase. i was shopping for a replacement and that's when i realised that there wasn't anything out there that was very affordable but also very high quality. my co—founder steph korey and i worked together at warby parker which pioneered the direct to consumer model and after we did some research we realised that the luggage industry was really ripe for disruption. and when was that? that was in 2015. so, jen, what sets you apart from other suit case companies? what sets us apart from the competition isn'tjust our product, which for us, having good product is just a table stakes. what really sets us apart is our focus on the customer, so everything is designed around the customer experience, theirfeedback, it is what drives our product road map, what we do with our stores and how we think about growth. tech is quite important for your brand and there are other brands coming out with suitcases you can track all over the world. how are you moving forward
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with technology with the brand? technology will be as important to our brand and our product as it is to our customers. when we first started out, customers constantly complained about how their batteries were dying while they were travelling, and we are created a solution that resolved that. 0ver over the years as that has progressed it has become less important to our customers, so we really listen to them and think about what problems they need us to solve and if something is very important to them that we will incorporate that technology into our product. word-of-mouth, influences, social media, they are important to your brand, why is that? 4096 of our revenue comes from word—of—mouth and customer referrals and we really think that is so much more meaningful thanjust think that is so much more meaningful than just placing an ad somewhere and hoping people find it. you sell in a 39 countries around the world. plans for expansion? our business is still primarily focused on the us. the uk was the first country we ever shipped to outside the us and now we ship in 39 countries. but as we expand we are
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thinking about places like asia, we are thinking about opening stores in europe as we look to the future and we are looking at retail expansion. we are opening 50 stores over the next three years. we are looking at international expansion, new geographies and markets we are not in yetand geographies and markets we are not in yet and product line expansion, which is something i'm very excited about. 0ver which is something i'm very excited about. over the last few years we have sold suitcases and bags, and as we grow we think less about the share of the luggage industry and more about what we call share of suitcase. how can we create the one perfect everything you need to travel? how can we create the perfect version of what you are going to bring with you and everything you are going to pack? 0ver everything you are going to pack? over the next couple of years that looks like things like parel and skin care. has it been difficult, or has started the business been made more difficult because you are a woman? what are the unique hurdles you face as a female entrepreneur? my you face as a female entrepreneur? my code finder and i as women have been resilient enough to overcome
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any biases we have faced over the last few years and the businesses in a place now where it speaks for itself. we have always been heads down on creating a brand and a company and products that people truly love, and we haven't let any of those things set us back. what advice do you have to any budding entrepreneurs who are watching this who want to get into their own business but don't know where to start? my best bit of advice to anyone starting a business is to make sure you are passionate about it. it is hard and i think nowadays being an entrepreneur is glamorised and you have to understand that if you are not passionate about the idea, it is not going to get you through all the hardships and long nights and all the challenges you are going to face. and for us it has been fun to solve those challenges because it is something we are so excited about. maryam moshiri reporting. some clean lines. i quite like them. have you heard the one about the invisible keyboard? what is the punch line? this package, i think. we think we have seen it all at the consumer
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electronics show in las vegas. now samsung has developed a way for smartphone owners to type on a table or other surface as an alternative to tapping on the handset‘s own screen. chris fox tried it out. look, numb, no keys! this is the idea that instead of typing on a tiny smartphone screen, you can use your self a camera and a touch type on the table and the camera recognises the letters you are trying to type. i've been put in training mode here and only had a few minutes to try it and i've really got some speed up. it does work. 0bviously really got some speed up. it does work. obviously i have to type in a particular way, i'm probably not the best touch type at home, i would normally stab at the keys, not very professional, i know. but this is training me so that the ai professional, i know. but this is training me so that the a! can recognise where my fingers are. let's bring in one of the
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researchers. there are many ways people can type, some people prefer typing on a physical keyboard and this is a solution that can substitute carrying around an extra device for productivity. it is a research project, so when might we see it on a phone? we are still working hard on this one. there is no official date for the release. but we will see how it goes in the future. i don't touch type. the two of us were saying, we would be hopeless doing this. you wouldn't even know what a typewriter is! at the top of the show we asked whether you are a ta keaway show we asked whether you are a takeaway addict. let's look at some of the viewer tweets. no, i cook everyday, from scratch. good on you. ican and good on you. i can and cook all meals everyday. it cheap as well. it cheap as well. it can be. someone else says, it is my meals on wheels when i am fully, fair enough. at night so can't get the groceries in during the day. and a massive help to people with disabilities who
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cannot go out and that kind of thing. it has been lovely having you watching. that's it from worklife today, more business news throughout the day on the bbc web page and on world business report with aaron. good morning. the weather will stay very unsettled over the next few days but today it is going to be a fairly quiet day for most of us. it's been dry this morning, some brightness and sunshine across most areas and we continue with the sunshine particularly for england and where is into the afternoon but cloud increasing with rain moving into north—western areas and with that a strengthening wind with gales later on. and temperatures this afternoon about 9—11d. a bit chilly across southern afternoon about 9—11d. a bit chilly across southern areas afternoon about 9—11d. a bit chilly across southern areas compared to yesterday. tonight the rain continues moving east and southward, but it will stall over the northern areas, so a lot of rainfall to come tonight, and temperatures will be on the rise. by the morning, ten or 11
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degrees celsius, 5—8dc for england and wales. it will turn milder across england and wales during saturday as we have the south—westerly wind across the uk, but it's this weather system that will very gradually move south and east. it is quite slow moving, so the rainfall totals will really start to mount up across the west and south—west of scotland, could be some flooding throughout saturday. further south and east it will stay largely dry, quite a bit of cloud and strong winds across the uk, but more so towards the north—east of england, south—east scotland and around the irish sea coasts. gusts potentially up to about 55, 60 mph. but temperatures will be in double figures, another mile today, highs of 11-13dc. as figures, another mile today, highs of 11—13dc. as we go through into sunday, the weather system will continue tracking gradually south and east would to be replaced by colder air moving in from the north—west. so turning white chilli into sunday morning, particularly
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across scotland. temperatures will eventually start to come down across the south and the east is that rain sta rts the south and the east is that rain starts to clear away. temperatures dropping as the day goes on. there will be some showers around, particularly during the morning but sunny spells as well. showers moving on, wintry over the higher ground, and temperatures during the afternoon around about 5—8, or nine celsius. next week the jet stream, which is the really high level wind, really strong wind across the atlantic, it stays right across the atla ntic atlantic, it stays right across the atlantic firing in towards the united kingdom and all these kinks in it indicate where we will see some areas of low pressure. so really unsettled conditions, low pressure after low pressure bringing very wet and windy weather throughout next week. that could cause some disruption, may be some damage, so well worth staying tuned to the forecast.
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you're watching bbc news at nine with me, annita mcveigh. the headlines: iran denies a missile was responsible for this week's plane crash in tehran. western leaders believe the ukranian passengerjet may have been shot down by accident. the evidence indicates that the plane was shot down by an iranian surface to air missile. this may well have been unintentional. the duchess of sussex returns to canada, a day after she and prince harry revealed they will step back from their roles as senior royals. the bbc learns an inmate suspected of attacking guards at a maximum security prison in cambridgeshire was jailed for planning to behead a british soldier.
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northern ireland's main political parties a

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