the cbi is hopeless. if i may say so... the cbi is hopeless. if i may say so...ng to what their members are saying, the distances of written. this quote is from the editor. —— the businesses of britain. —— toyota. they no longer have the confidence to stay in britain and say investment decisions will be made accordingly. what are toyota worried? they will no this is how it works. why do you think they are worried? why is it that if people are so worried about investing that in 2016 the uk received its largest ever fdi and a high share of all eu fdi coming into the european union? we should watch what businesses are doing and how much they are investing, not what it pr machines are saying. you don't agree with the key points of theresa may's position on how she once the negotiations to go. she wants a two—year transition, and during it, we will accept all of the rules of the eu, including the european court ofjustice, like the printable freedom of movement, while we negotiate the long—term deal. —— principle of. they should have no involvement after we have left.

conference in london >> we have the president of the cbi behind me talking. in a few minutes we'll be hearing from the prime minister, theresa may. i'm joined by duncan logan who's the ceo of rocket space. he's a tech facilitator if you will we've heard a lot about brexit this morning they have some numbers out, cbi, about uncertainty. what impact do you see uncertainty having on tech in the u.k. >> in the u.k. we've got to deal with the entrepreneurial end of the market, the startups and so forth. for larger corporations it's a lot harder to deal with but for the startups and more agile companies, uncertainty can lead to opportunities. >> you're looking to park a few hundred million in an idea, would you do it in brittain versus -- >> i think anyone with is that kind of money is going to be looking for a global company they have to think of the global marketplace. so i think there is uncertainty for investing in u.k. companies although the stats show that there's more west coast investment coming into the u.k. now than ever before i think from the u.s. there

you raised the cbi. the exchange rate mechanism, they were wrong. they wanted us to join the euro, they were wrong. the cbi's record of giving advice to the british people is hopeless. their predecessor body, just to make the record more historic, was in favour of appeasement. if i may say so... the cbi is the most consistently wrong body in the country. and it's not a... in the end, it is the sum of its parts, isn't it, and they are listening to what their members are saying, the businesses of britain, including, and i havejust given you this quote is from toyota, who were hopeful there would be a deal that would guarantee there wouldn't be tariffs on their manufacturing on cars across europe, including in britain. now, they no longer have the confidence to stay in britain and they say investment decisions will have to be made accordingly. imported and re—exported in the process of manufacturing. toyota will know this is the case, this is simply how it works. why do you think they are worried? i mean, d

jeremy corbyn at the cbi. let's get an assessment of that from norman smith.rity. his argument that every pound sheltered from taxes a point that the nhs or other public services are being deprived. john mcdonnell this morning said that without these offshore tax havens austerity wouldn‘t have been necessary , austerity wouldn‘t have been necessary, it could‘ve been avoided altogether because of the billions they could have been recouped in tax. nightjeremy corbyn: notjust for a public register of all offshore accounts in british territories like bermuda and the cayman islands. also the cbi demanding a public enquiry into the use of offshore tax havens to avoid paying tax, and suggesting that a labour government would impose what is called a withholding tax on those wealthy individuals and companies who sought to take the money out of the country and put it in offshore trusts. we have just learnt that labour have been granted an urgent question on this issue in the commons. if that is being tabled by john mcdonnell, i would expect that the chancellor will need

anna: that was her jeremy corbyn, speaking at the cbi.eresting comment, in the context of the criticism he has leveled at public-private investment partnerships in the past. manus: that was the first time. last year when he wasn't a contender for prime minister. this year he is, and there's a difference on how he gets there. he went and theresa may went. id. don't think either of them necessarily inspired the cbi. when you look at his comments and you think back to what mark investment is dying in this country by 20%. his admission is laudable, but that is the reality. >> that's true, but it is great to hear them talking about wings like infrastructure and housing. if you are looking for a perhaps brexit, has the opportunity to reset on some of those issues. i still don't think it necessarily fixes one of the biggest problems in the u.k. economy, which is our productivity. core productivity relative to the states or continental european partners. anna: is the fix for that more education, infrastructure, broadband technologies? at least tw

there was some room for optimism, the leader of the cbi thinking that we can get some movement.e people ca n start movement. two weeks before people can start triggering contingency plans. simon, thank you. our business editor, simon jack. mps are due to begin debating a budget for northern ireland. it's usually a power reserved for the stormont assembly, but ministers in westminster say they have no alternative because of the failure to restore the power—sharing executive. it collapsed injanuary, and since then the dup and sinn fein have failed to agree a deal to restore devolution. our ireland correspondent, chris buckler, is at stormont this lunchtime. westminster setting northern ireland's budget — how is this being viewed? yeah, four months, northern ireland a nyway yeah, four months, northern ireland anyway has been in a weird limbo, somewhere between devolution, where storm on‘s politicians would make decisions, and westminster rule. that is all starting to have a practical impact because without a power—sharing executive, legislation cannot go ahead, including very pract

carolyn fairbairn, the director—general of the cbi.d prosecution of catalans political figures. carles puigdemont has said he will not return to spain from belgium unless there are guarantees that he will get a fair trial. the heir to the throne in saudi arabia has overseen a major purge in the country's leadership. ii princes, four current ministers and dozens of former ministers have been detained. crown prince mohammed bin salman is the head of a newly—established anti—corruption committee — and he appears to have sidelined a number of powerful figures. our security correspondent frank gardner reports. saudi arabia has been shaken by two shocks within hours of each other, first, fired by rebels in yemen they reportedly reached the capital riyadh before they were shot down. this is a big step, they are using ballistic missiles, long—range missiles, likely from iraq to put ——likely from iran to put pressure on the saudi arabian government which has been bombarding yemen figures now. next in an unrelated move came the news that several

and leaders of some of the 190,000 groups affiliated to the cbi, including the head of bt.re the aerospace defence and security organisation a ds, a lobby group for the industries of the same name. and the software giant advance, and both aussies join me now. paul everitt first, from the ads. what is the most pressing issue for your sector? two we have been talking about this morning. the first is brexit and the key is to get a formal confirmation between the uk and the eu that there is going to be an implementation phase ora going to be an implementation phase or a transition phase, so that many businesses can have the time to make the changes they need to make in a measured way, rather than having to plan for the worst case scenario. another issue you are greatly concerned about is productivity, but your industry is doing very well. production rates have gone up 30% in five years. record profits. why is this a big issue for you? we are pa rt this a big issue for you? we are part of a global industry and competition is intense around the world, especially for successful in

the cbi have been having its conference today.k you. why do you think they have invited you for the first time to address the conference? they have been holding the conference for many years? well, i'm really pleased that we have got caroline fairburn asa that we have got caroline fairburn as a leader of the cbi. we meet regularly and we have common issues and concerns around brexit, and around industrial strategy and a commitment to seeing equality too. one of the hot topics has, of course been, sexual harassment in the workplace. some of myself and my female colleagues have been discussing the types of things that happened to us and some of the male collea g u es happened to us and some of the male colleagues have been surprised at what they have been hearing from us. this goes back some years. it does seem this goes back some years. it does seem to be something that happens more to younger women. we did think this was dying out, but it isn‘t. why not no, the tuc did the biggest survey on sexual harassment last year and we know

the cbi, it says one a nswer to to do about it?y? actually we've got some of the most productive firms in the world, we've got a higher proportion of high productivity firms than anywhere in europe, but we have a long tail of low —— low productivity firms who are finding it difficult to invest in even rudimentary technologies. some of the reasons are cultural, and some of it is the fact that we don't have many international firms, so that horizons are not that broad and they don't have the opportunity to learn from the best globally. what are you asking government to do? the government has an industrial strategy white paper coming out, and when the government tends to talk about technology it is often looking at the latest thing, artificial intelligence, these new and dynamic technologies. i am intelligence, these new and dynamic technologies. iam not intelligence, these new and dynamic technologies. i am not disputing that these are important, but the blind spot is the fact that technologies that have been around for quite a long

let's speak to the chief economist at the cbi.n for theresa may. we are talking about the fact that she has a clear message she wants to deliver to you, but will she be listened to? absolutely. i mean everyone is excited to be here. we have got leaders from across business and government. we're here to hear the prime minister and what she has to say and we have gotjeremy corbyn and some great innovators from british industry and we're really keen to hear what they have to say. well, you say you're pleased to hear what they have to say, buff said that you are frustrated with how the brexit negotiations are going. that you are frustrated with how the brexit negotiations are goinglj think there is two things that british business wants right now and that's a clear transition agreement with the eu so that we have time to prepare for that new relationship with the eu. we'd like to see the prime minister deliver that, but importantly, we also want the focus on the domestic agenda, on our industrial strategy, on making sure we have the r

joining me now is carolyn fairbairn, director—general of the cbi.hadowed by this, but inevitably it is such a huge debate at the moment. do you think we have reached a turning point, and how might that apply in your sphere? this is an incredibly important moment. although at the moment the issues are mostly in westminster and hollywood, it also happens at large in society. many firms will be shocked by what they are hearing. many have fun —— have fantastic practices. now is a good time to re—examine those, look at them with fresh eyes and see how we can really make this a turning point for society. it is a question of people having confidence that practices will be applied, which is an issue in big organisations, including at the bbc, the rules that there are and how they are applied and whether people are satisfied with that. what about all those other aspects of businesses, small and medium—sized businesses, small and medium—sized businesses where relationships are more personal because you're working ina more personal because you're working in a

the prime minister, theresa may, is on stage at the cbi conference.. i said it was the very best way to spread opportunity, and lift people out of poverty. we should never under estimate the immense value and potential of open, innovative, free—market economies when they operate under the right rules and regulations. around the world, over the last century, it has been those countries with well functioning free markets which have enjoyed the greatest economic, social and technological advancements. at its best when a free and open market place is combined request the rule of law, individualfreedom, equality and human rights, in a representative democracy, great things are possible. people live longer and more secure lives. they have the freedom and the means to fulfil their ambitions and make the most of their potential. to bring up theirfamilies, care most of their potential. to bring up their families, care for one another and give something back to their local communities and to wider society. and i believe that the approach i set out to this gathe

focus on development and the future companies here in the uk >> there are many recommendations from cbi to the chancellor one was realigning business rates from rpi to cpi. do you think he may do that today? >> fingers crossed we're hopeful. we know that is one of the areas of the economy that's facing a lot of challenges, the retail sector that's partly because lhigh inflation is running at 3%, and business rates, the tax on properties, shops, factories, that rises in line with rpi which is at 4% it wouldn't cost that much for the chancellor to take action on that we're hoping he will tackle the rising burden from business rates and how that's impacting high street shops and factories. one last question. the bank of england hiked rates a couple weeks ago some say this is coming at a dubious time given the political back drop, a lot of uncertainty about brexit and what that means for investment are you supportive for the rate hike that the bank of england committed to where do you see the rate hiking path going in the future >> i think, look, it's a tough call for the bank of england th

it was well received by the cbi.ught reassurances. his words weren't in any way affecting nazanin zaghari—ratcliffe. i'm glad julep wants to focus on higher, we should put herfront and centre of this. i'm sad that the front bench on the other side were giggling as soon as emily thornberry finished her speech. you know, making political hay out of this. this will only encourage the ir gc, who was a real culprits, remember who the culprits are. they will enjoy this. the man is foreign secretary of our country. he should not be repeating them mendacious comments made by the iranian revolutionary guard, which is what he was doing in the select committee. he should know better. we need to leave it there. thank you so much. we could talk a great deal longer about this. a former member of the welsh government who resigned last week in light of allegations made against him has been found dead. he is understood to have taken his own life. carl seargent lost his job as cabinet secretary for communities and children last friday

we were speaking earlier to the head of the cbi.el in seven yea rs, fallen to its lowest level in seven years, according to the local data ceo women‘s clothes and shoe shops have been worst hit, but as ice cream parlours have been worst hit, but as ice cream pa rlours have have been worst hit, but as ice cream parlours have come in, beauty salons are on the rise. and the lack of affordable housing in rural areas is driving out young families and working age people from those areas, with the result that towns and villages may be dwindling away. that is from the national housing federation. we will be speaking to them a little later, in about half an hour, about why that happens. quite an issue for rural areas, but i think ice cream parlours probably the big takeaway there. in more ways than one! six months ago we brought you the story of matthew bryce, who was stranded at sea for two days after his surfing trip went disastrously wrong. matthew almost died, and was rescued 13 miles off the coast of northern ireland, vowing never to su

they will speak at the cbi's annual conference.l news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. cehic.jra this is bloomberg. -- after ahe age of decade of qe, central banks will start turning up the taps. bonds to expire without replacing them. -- tapering those purchases starting in january. how successful with the taper be? joining us now is francesco papadia. -- he knows monetary policy and qe. he is senior fellow at google. mr. papadia, thank you for joining us. when it comes ecb policy and what they decided to do which is basically have the asset monthly purchases. francesco: there was no tamper tantrum at all. easierse this was a bit because it was on the dovish side of things. it would've been on the hawkish side of things, it would've been more difficult. i may need to look at the president of the fed and ecb managed to do think smoothly. i was a bit surprised that it was so dovish. i thought it could have been a little tighter. francine: for example, would that look like putting

but the cbi talked us into the exchange rate mechanism which gave a huge headache to their members, theye euro and said the city would be damaged if they didn't, instead the city flourished. there seems to be some optimism in the air in brussels that come december, there will be some movement beyond the unpicking of the current relationship. are you still hopeful? you say you are relaxed about the prospect of no deal, but are you still confident an agreement can be struck? it would be better to pay the tariffs than to have a very large payment going out, because we would collect the tariffs and give it back to our customers in the form of tax breaks. i am still a little sceptical that they are serious because i haven't heard them say they want a trade deal, the sooner they say yes, the sooner we could conclude a perfectly good deal. you seem to be setting quite a high bar, however, on the basis of the divorce settlement, because this seems a sense that the government is moving towards paying considerably more than £20 billion, perhaps £40 billion, £60 billion. you are saying that is not

she faces a tricky reception with the cbi warning uncertainty is taking its toll, with firms worriede truck attack in manhattan which killed five argentines. turning to russia, where a rally and reconstruction of certain events of the 1917 revolution will take place in st petersburg. now with news about the new york marathon and the rest of today's sport briefing, here's tulsen tollett. here is what we are looking forward to at the bbc. as footballers head around the world for international duty, league managers are feeling the pressure of poor results. manchester city are at the top of the premier league, an american woman has won the new york marathon for the first time in a0 yea rs marathon for the first time in a0 years and jack socks enters the world tour finals. and pressure is on zinedine zidane after his team beat las palmas, and it has been tough for them. they have moved back tough for them. they have moved back to within eight points of fierce rivals barcelona. west ham boss bilic will meet with david sullivan after the a—1 defeat to liverpool on sunday leaving them in the

theresa may spoke to cbi and says she backs a transition. she urges executives to be more optimistic about the process. sterling fell the biggest the klein in five months. we will talk about that later. vonnie: we will talk about the saudi shakeup. authorities describe it as a crackdown on corruption. among those arrested, the billionaire investor with stakes in citigroup, twitter, and apple. >> the scope of this purge is what is surprising, the number of princes and ministers arrested. vonnie: our middle east executive editor joins us now. how much is this arresting control and how much is it to calm trade nerves among regular citizens suffering from the price of oil shock? idea is he is fulfilling a promise. fighting corruption was at of the biggest promises. certainly being received as such. anyone looking at the scope gets mentioned that the scope of this thing included businessmen, princes who are not in business, necessarily, it does show and isd a clear message there one person in charge and that is the crown prince. asnie: what quali

that is the view from small businesses, caroline fairbairn, the cbi, what you take this?the economy, permitting we did. for the short run, business rates have been a big challenge for businesses of all sizes. anybody with buildings frankly and that will be very important. we also welcome the contingency planning around brexit. we want to see the government doing it as well so that is very good. but the long—term is very important, productivity growth is the most important thing. to see the action on skills we will have a partnership with the tuc and the government on retraining. we have seen some government on retraining. we have seen some real government on retraining. we have seen some real money government on retraining. we have seen some real money behind that. crucially infrastructure spending across the country. a lot of focus on regional. one caveat we have, there was a lot of talk in the budget around commitment to the metro mayors and the spending of infrastructure money for the metro mayors. we must make sure that regions of the country that do not yet have mayo

the prime minister has been addressing the cbi, she says we should go forward with rational optimism. that not going through brexit, that not going through brexit would save you money. we continue to believe that. we are 110w we continue to believe that. we are now of course working with the uk, for the now of course working with the uk, forthe uk, to now of course working with the uk, for the uk, to make the process as smooth and seamless as possible. do you believe the europeans are doing that in an honest manner? extending the negotiating position is a political decision? it took 40 years to create the common market, and the european union. there is absolutely no reason why you should try to do it in two years, because it is written on some piece of paper. the transitions that you need, you should take, the terms you should take. that goes for the europeans, who want a good deal, as much as for the uk, who want a good deal. therefore, if you have both of the parties involved wanting an efficient, least disruptive deal possible, then of course take as much time as you need. 2017 is

will activate contingency plans for a possible no deal scenario and after those talks, a member of the cbiexplained what she had heard from the prime minister. businesses in a sense they care about the outcome and what we've got here isa negotiation that needs to pick up pace. it needs to recognise how urgent this is. we have surveys showing 60% of businesses will have triggered their contingency plans by march of next year, and we are hearing similar stories from european businesses. i think this is a message to both sides that there is such strong mutual interest here about jobs and prosperity and the performances and success of businesses, we really need to get on with it and pick up the pace. accelerated talks the demand from businesses but we think the kiefer that the government is money and if the eu are going to open the door to trade talks and get the transition agreed —— the key for that. then the uk will be far more candid about the money they are prepared to pay. thank you. we could talk more about the concerns of business. with me in the studio is nina skero, head of macroecono

also this new deal with the tuc and cbi and the government working together for skills for the future required to make sure we deal with the productivity challenge. crossrail has been around for sometime, and viewers might wonder when we see better on activity beggars speeding through, because just to underline today, there was no pretence from the chancellor at all -- no pretence from the chancellor at all —— productivity beggars speeding through. you —— productivity is speeding through. we seem to have a problem with productivity. asa productivity. as a country we have a child with productivity and it has been low under successive governments, and thatis under successive governments, and that is not because of the british people... we are the hardest working people... we are the hardest working people in the world and that is fantastic. but government must do its bit in investment. you can only do that if you have a strong economy thatis do that if you have a strong economy that is generating the jobs, generating the tax revenue that can be reinvested. and that is key to all of this

the cbi and the institute of directors will be represented — as will business organisations from germanyven other countries. they will press theresa may and the brexit secretary, david davis, to clarify the future relationship between the uk and the rest of the eu — and demand they maintain current arrangements. chris mason is at westminster. they really want some clarity, and they definitely don't have it, do they? good morning. they want clarity. they want to be de—stressed. we have this bus—load of business leaders from europe, various groups having their say. urgency is the watchword we keep hearing from them. they are saying that the growing number of them are enacting contingency plans around brexit, fearful that as the clock ticks down there might not be an arrangement put in place. they are also uncertain as to exactly what that arrangement might look like. the government is keen to reach out to these groups, but given that they are logjams over the initial discussions about the divorce, it is unlikely they will leave with more clarity. just remind us why the talks are logjams at

the cbi conference today.heresa may is going to talk about the importance of limitation. , known by some others is the transition deal. it's a wasting effort, though. what is it to you for that to shore up the pound? kit: not quite yet. i think welessons find is that sterling is a very cheap currency now and with a thenof terrible huge price if it's not going down it's because, if you have any good news, you would get much more of reaction. manus: it's going to be interesting to see if the comments on preston on sunday galvanize. do think he is trying to re-sticky the bank of england? i'm not sure they can. i think yes to carry on with steady policy. i'm sure the idea of the rate rise was not that it would weaken the plan. manus: thank you so much. kit juckes is the chief strategist. has: up next, saudi arabia thrown a curve ball. a sweeping arrest of high-profile nationals. we are live as the stock exchange opens next. you will get the latest on the ground. investorsldings and across the kingdom will be looki

today i will accept the representation of the british chambers of commerce, cbi representation of thenge the law to ensure where a businesses impacted by the ruling, it can have its original bill reinstated if it chooses and backdated and i hope i can expect cross—party backing to speed that measure through parliament. three simple steps to solve the staircase tax. what do they expect, it is the tax section? to support the thousands of small pubs at the heart of many communities, we will extend the £1000 discount with the rateable value of less than the amount to march 2019. i have heard the concerns about the five—year reevaluation system and shorter periods will reduce the size of changes in valuation that i can announce after the next revaluation future revaluation will take place every three years. this conservative government is listening to small business. there is a wider concern across this house and in the business community about the tax system in the digital age. along with innovation and growth it brings, digitalisation poses challenges for the sustainability and fairness

so what we're doing today is exactly the sort of thing the cbi urged us to do, to provide certainty thaty and already investing a lot of money in that. exactly what we'll need in terms of the uk's eu will depend on the final agreement that we reach with the european union —— the uk eu. as you're well aware, the eu aren't willing to talk to us about that and that's unfortunate because for a lot of businesses and a lot of international investors, and a lot of european businesses, they want to know what that end state might look like so they can plan now for that. at this point the british government is urging the european union to talk to us about that so we can get much better certainty and much better clarity on what the future relationships might look like. can we talk a bit if we could about paradise papers and questions being raised about the willingness of british crown dependencies and overseas territories to facilitate tax avoidance. is enough being done, do you think you should be doing more? obviously tax transparency is a global issue and requires global action, especially in th

representatives from groups including the cbi and business europe pressed for a transitional deal thatthe minimum requirement. nisa has more than 3000 stores and operates a wholesale business. german energy giant innogy has cut the value of its uk energy business npower by £427 million — partly in response to tightening regulations. and its merger with former competitor sse. it said competition in the uk retail business remained ‘very tough and pressure on margins is very high‘. a new report out today from the national housing federation — young people fleeing to the cities is the quest for more affordable housing and jobs? living in the countryside is costly? the national housing federation has said children leave university, leave the countryside, and don't come back because of poor facilities. it's partly to do with broadband, that's something we talk about a lot in rural areas where it isa about a lot in rural areas where it is a real issue. it doesn'tjust affect the workplace but schools and education as well. therefore they are finding it hard to retain talent. also housing costs