tv BBC Business Live BBC News September 5, 2019 8:30am-9:01am BST
you are. this is business live from bbc news with victoria fritz and ben bland. as manufacturers warn industry is in a "nosedive" — uk recession fears grow. live from london, that's our top story on thursday 5th september. warning clouds grow over the british economy — and brexit forecasts are still unclear — you're watching bbc news at nine yet the governor of the bank with me, annita mcveigh. of england revises down his the headlines: assessments for the impact number ten says boris johnson will speak directly of a no—deal brexit. to the public later today to argue his case also in the programme, for a general election.
more turmoil at the top of nissan — it comes after he as its new boss admits faced another defeat receiving improper payments. in the house of commons, and the european session has opened. digesting news that germany when mps rejected his calls for an election. is facing a heavy fall in industrial the shadow chancellor says the timing of the election is key. orders from companies this prime minister has been outside the eurozone. defeated four times. he hasn't won a vote it's just the latest sign of how in parliament yet. europe's biggest economy why? is suffering powerful blows because actually, we've been from the us—china trade war. and how to become a glittering using the right strategy. success and how to become a glittering success in the world of any fine jewellery. and as the holiday season so now we're in that situation where we bring the right people with us and we maximise the date draws to a close many people will to protect against no—deal. a late—night pact between the government and labour peers have used short—term letting sites which is transforming historic cities. is it a force for good or bad? let others know.
hello and welcome to business live. welcome to the programme. we start with the uk economy. as the wrangling over brexit continues — there are fears the country could be slipping into recession — for the first time since the financial crisis. a global economic slowdown and trade tensions are being compounded by ongoing uncertainty over brexit — as shown by increasingly gloomy reports from business groups. in the last few hours, a survey by uk manufacturers has warned their industry is in a "nosedive" — with export orders falling despite the weak pound, and domestic orders faring even worse. hiring is continuing to decline. britain's vital service sector — the biggest part of the economy — "lost momentum" in august as growth all but fizzled out — according to a survey of purchasing managers. optimism in the sector slumped to its lowest since july 2016 — the month after the brexit vote. and retailers say sales were down last month compared with august last year. the uk economy shrank in the second quarter —
the three months tojune. the governor of the bank of england gave evidence to members of parliament on wednesday — when he was asked about the state of the economy. is the economy stagnating?“ is the economy stagnating? if we look over the course of the year this year there has been volatility in the data because of brexit preparations because of stock building by companies because of shutdowns, car production activity restarting. if you look through the underlying trend, our judgment restarting. if you look through the underlying trend, ourjudgment is that the economy is growing very weakly, slightly positive, but close to zero. dr thomas gift, lecturer in political science: public policy economics and analysis at ucl, joins us now.
with the warning, he revised down the impact of a ordeal brexit but it is still quite a significant... 5.5% hit to the economy instead of 8%, it is still quite a big impact. it is. rather than having a category five hurricane we are going to have a category four. it is still very bad nose. it is good news is that it is not going to be 8.5%, instead roughly 5%. any way you cut this this is very negative. at the same time he has protected we might see a doubling and inflation and doubling in unemployment. but no soul rent, material damage to the uk economy. we were told experts from the uk would benefit from the weak pound but the data we have had from manufacturing suggests that hasn't turned out to be the case. that is
right. manufacturing seems to be in a nosedive. it comprises 10% of the uk economy in the recent estimates are that it is declining at a rate thatis are that it is declining at a rate that is the fastest in the last seven years. in terms of the likelihood of a technical recession for the likelihood of a technical recession forthe uk, we likelihood of a technical recession for the uk, we will get the data at the end of the month, of course that matters to people who live in the uk, it effects business investment which fx uk, it effects business investment which fonbs uk, it effects business investment which fx jobs and uk, it effects business investment which fonbs and quality—of—life but why should the rest of the world ca re if but why should the rest of the world care if that were to happen? we have to remember the uk, particularly london, is the centre of the european financial market, and to the extent that the uk economy is in a downturn that can have rippling effects throughout europe and the world. this is exacerbated by two of the largest economies in the world, the largest economies in the world, the us and china, locked in a trade war, and we could see a perfect storm of global economic cooling
combined with all of the folate from brexit. you mention the ongoing trade tensions between the us and china. how much do you think that has a sway on things like the manufacturing sector? it can have a huge impact on the manufacturing sector globally because these markets are so substantial and u nfortu nately markets are so substantial and unfortunately it doesn't seem like the steady progress being made between those two countries. we could see it persist for some time. thank you. let's take a look at some of the other stories making the news. youtube's owner google is to pay $170 million to settle allegations it collected childrens‘ personal data — in breach of us federal law. youtube is accused of tracking viewers of its childrens‘ channels without parental consent and using the data to target them with advertising. us and chinese trade negotiators will resume talks in washington in early october — according to a statement from beijing. the trade war between the world's
two biggest economies escalated further on september ist, when both sides implemented new import taxes on each others' goods. uk—based ryanair pilots have voted for seven further days of strikes — between 18th and 29th september — as part of a row over pay and conditions. the british airline pilots association said it wanted to settle the dispute, but ryanair has refused to seek conciliation. ryanair said the strikes were "pointless" as industrial action in august had not resulted in any flight cancellations. breaking news on the us and china trade situation. china's commerce ministry has said a phone call on thursday with us top trade negotiators went very well and added that beijing opposes any escalation
in the trade war. that line just coming to us from beijing saying that china's commerce ministry saying that a phone call on thursday with us top trade negotiators went very well. we will bring you updates as we get them. more turmoil at the top of japanese car giant nissan. its chief executive — hiroto saikawa — has admitted receiving more pay than he was entitled to from stock options — according to japanese news agencies. it comes as nissan tries to rebuild following the arrest of former chairman carlos ghosn on financial misconduct charges — which he denies. rupert wingfield—hayes is in tokyo. things don't seem to be going so well for nissan. no. nissan has seen its problems continue over the last few months. it's business seen a
nosedive the second—quarter profits for nissan fell 94% year—on—year. that shows that they are really suffering in markets around the world particularly north america and europe. on top of that we have these admission by the ceo that he received around 440 , 000 admission by the ceo that he received around 440,000 us dollars in bonus payments, stock option payments, that he shouldn't have got. he admitted this on a doorstep with a japanese journalist this morning. he is underfire from many different directions. firstly because of the fall in profits but also because he was very closely related for many years to the former chairman. and if the chairman has
committed financial misconduct there are suggestions that he may have been involved as well. suggestions he may have been involved at exactly the same issues that the chairman is facing criminal charges for. that seems like an anything admission to be making. thank you. stocks in china and japan rallied on thursday amid optimism of thawing geopolitical tensions, after the us and china announced that they would resume trade negotiations. we think they will meet in early october. a few bits of market moving corporate news for you this morning. dixons carphone has reported another sharp decline in mobile phone revenue but left its profit forecasts unchanged
after a better performance in its international business. there's a new boss at the bookmakers william hill. the betting firm is overhauling its business to move away from a traditional store—based model, following plans to close hundreds of its betting shops. and the fast—fashion retailer boohoo has grown even faster than expected this year, and expects sales growth for the full year to be greater than previous forecasts. no end to our appetite forfast fashion. samira hussain has the details of what's ahead on wall street today. on thursday the adp national employment report will be released and it's expected to show that private payrolls increased by 149,000 jobs in the month of august after gaining by 156,000 jobs injuly. to be clear, this report reflects increases or decreases in the private sector, and this is different to the jobs report released by the us congress department on the first friday
of every month, which, in this case, happens to be tomorrow. also happening in economics news, the latest factory order numbers will be released on thursday. factory orders are likely to have increased by i% in the month ofjuly after a 0.6% increase in the month before. joining us now is sue noffke, uk equities fund manager at schroders. sentiment over the last 24 hours, stock seems to be improving. thawing of tensions has had an impact on markets. us and china trade. the situation in hong kong, which people have been quite fearful about. that has taken a pause. nicky was on tuesday. wednesday a little
bit weaker. people are giving some pause to wear the protests go from here. in europe we saw some easing of tensions in italy, where the far right movement looks as if they are not going to be able to influence the eu to the extent people might have feared. closer to home, i don't know if people are fed up with it, but we have to talk about the impact it is having on the markets, the pound against the dollar, we have been on this one point to handle for some time. we have dipped to 1.18 earlier this week when people thought that no deal exit could really happen and be balanced to 1.22 but the events of the night that parliament regaining control. we are still very tentative and very subjective events day by day.
sometimes hour by hour. when you think about where it came from, back to 2016... even think about where it came from, back to 2016. .. even very recently we we re to 2016. .. even very recently we were close to 1.40 so it is a big no for consumers and businesses. still to come, if goldilocks was to buyjewellery perhaps this is what she would go for, not too expensive, not too cheap butjust right — it's called demi fine and we'll be looking at the industry injust a moment. you're with business live from bbc news. when you're thumbing through social media, how good are you at telling when an ad is actually an ad? well, according to the uk's advertising watchdog, we're not all that media savvy. they say social media users can't always tell if a post about a product or service by an influencer they follow is a genuine opinion — or if the influencers are getting paid to promote it. the advertising standards authority
wants these insta—sta rs and twitter—titans to clearly label their posts and be more upfront to their followers. let's speak to rob morrison — he's the ad labelling project lead at the advertising standards authority. how bad are we aren't telling the difference? research over the last 18 months includes other own research and a wider look at the academic literature tells us people are not very good at discerning when influencers are posting content that is advertising, and for a while we have been saying that when influencers are posting things because they have been paid to do so they have to label that clearly and upfront, for example with a hashtag. research shows that is necessary as a minimum. do you think they are making misleading content in the
first place? it is quite difficult if you are looking at the content to tell between the two because so many people are looking at hashtags? research tells us that the influencers create quite a range of content, some of which is their own organic editorial content and some of which sometimes can be branded content, and clear disclosure upfront can at least help people identify when that post is advertising, but there may be other factors, presentational factors, that might help. thank you. there is plenty more news online. boo—hoo trading was ahead of expectations. more details when you
wa nt to expectations. more details when you want to have a look at them. you're watching business live — our top story — a new study suggests uk manufacturers are suffering a "nosedive" as a cocktail of brexit uncertainty, slowdown in major markets and trade wars takes its toll. it doesn't appear to be having much ofan impact it doesn't appear to be having much of an impact on the markets. the ftse down 17 points. it has been a volatile trading period. lots of people away so volume has been thin. we are seeing a back—to—school momentum with the markets but lots of different things going on at the moment so it is worth keeping an eye on the markets but quite a muted
impact of political developments across the world. you might think, with economic forecasts predicting a global slowdown, things might be less than dazzling in the jewellery industry. but you'd be wrong. consumer appetite for bling is on an upward trend. last year alone, the worldwide market was valued around $271 billion — and it's expected to hit $645 billion by 2035. but mostjewellery is either very expensive or really cheap, with little in the middle. well, a new catergory — demi—finejewellery — is filling that goldilocks gap in the market. one company taking advantage of this trend is london—based missoma and founder mareesa hordernjoins us now.
is there something that you made up? there is a big gap in the market.|j think net up coined the phrase. our customers want to be able to buy jewelry for themselves. we want to treat ourselves on pd because we might deserve it. you want fashion forward design but quality craftsmanship and we decided we are going to make that for ourselves, for our customer, and it is all about the marrying of the two at an affordable price tag, so we sell mainly under £150, it is everyday luxury and we wear it every for any occasion. given the current pointers around the world to a slowdown globally in the world economy, jewellery is one of those things that are seen as a luxury that is probably one of the first things that people would cut back on our go
without, so why. .. that people would cut back on our go without, so why... how worried are you right now about those pointers we are seeing? we all have to be worried because there is so much uncertainty right now and none of us know what is going to happen and certainly we are seeing the costs of goods going up with the dollar against the pound. we are going to try to offset that by working at the us market to try to hedge that naturally but where we sit and this niche market that we have created, carved out, it is a growing category, it is growing hugely against fine jewellery. category, it is growing hugely against finejewellery. i category, it is growing hugely against fine jewellery. i am category, it is growing hugely against finejewellery. i am hoping that this is the jewellery that you don't take off. it is also value for money. it is quality, craftsmanship, it has longevity, it is cool, fun, whether you are a statement maker or su btly whether you are a statement maker or subtly stylish. let us talk about where it comes from. how do you get to trigger consumer? we manufacture
in india and we buy the components on the elements from all over the world, yet called the refineries in the us or germany, machinery in germany, and we have quality control in india and then be imported to our warehouse in the uk and have another round of quality control. we ship internationally from london. 38% of oui’ internationally from london. 38% of our business is international. how important is the influence of social media? we have been very lucky to have grown organically and we started working with influencers when it was organic, so back in 2014 we we re when it was organic, so back in 2014 we were one of the first because we realise that instagram was a great way to connect directly with our customer, but it is the customer who is the hero of her story and it is all about talking to her directly and we are working on building out real customer stories where we can show how they wear it, using user
generated content, showing how they wear it every day, because they are the king in the story. you see her... it is her and the king in the story. you see her... it is herand him. the king in the story. you see her... it is her and him. is it meant buying for women? we do not do a range for men but we have a lot of men wearing ourjewellery and they look fabulous. and then another office, thomas, he has gone from customer service office, thomas, he has gone from customer service and he is in charge of social media responding to our customers, because it is very important to listen to what they are seeing, the feedback to them, and we make design decisions based on what they have said, so here's an example of how to style it. thank you. you know what to get me for my birthday. in a moment, we'll take a look through the business pages, but first here's a quick reminder of how to get in touch with us.
london, singapore, shanghai, new york, our correspondence have it covered online and on the news app. check out the website for insight and analysis. the page has the latest breaking business news. we wa nt latest breaking business news. we want your viewers. get in touch via the page, tweet us orfind us on facebook. join the conversation. joining us again is sue noffke, uk equities fund manager at schroders. shall we start with the financial times? the end of the european summer times? the end of the european summer holiday season, a lot of people will have booked on short—term rental sites but we have an article questioning whether the whole model is destroying the very rich historic centres and cultural
capitals. posing the question of whether the short—term light opportunities are a double—edged sword. they have brought in a lot of money and investment and reinvigoration particularly to a lot of these european centres that suffered a lot in the european crisis, but at the expense of locals, whether its local services, locals, whether its local services, local traditions and cultures, pushed up prices, and that's pushed people out into the suburbs. we are getting some responses. someone says what was lauded as a wonderful use of underused assets and parts of the circular economy is being seen by many environmental correspondence as a way for those with money to further fill their nests. that is true, you have to own the property in the first place in order to be renting it out. that is true, and it is how much is that controlled, how much gets put back and reinvested
locally to provide the right services. how do you control anti—social behaviour? access to affordable rentals for locals as well. we are almost out of time but this is fascinating about smile to pay technology. it is taking off in china. it is being sponsored and marketed and it allows people to go shopping without anything, but their phone, card, and they are even putting facial filters to make people feel less ugly when they go unpaid. my concern is what are gets a picture of you, prints it out real life size and puts it in front of the tell and then you are in all sorts of trouble? thank you. that's it from business live today.
there will be more business news throughout the day on the bbc live webpage and on world business report. we'll see you again tomorrow. winds will be lighter than yesterday and while we have some sharers in the forecast it will not be as many as yesterday. this morning we have a warm front moving on to the west of scotla nd warm front moving on to the west of scotland that is bringing outbreaks of rain. this high pressure behind me is trying to move its way in which will keep things relatively settled for most of us. showers across scotland delving into the north—east. one or two showers could affect the test match at old trafford. for most of us it is going to be dry with some sunny spells and temperatures getting into the mid to high teens, perhaps squeezing into
20 celsius in the south—east of england. this evening rain is going to move through scotland spreading into northern ireland and moving south and east into northern england. clear skies further south and north as the rain from the far north of scotland. temperatures for many of us in double figures perhaps just below single figures in eastern parts of england but the rain is to the weather front and area of low pressure which is going to move away. high pressure starting to build which will come into play over the weekend. during friday's best band of rain will tend to break up a little bit. showers for the one behind that but you can see increasingly sunny across northern england, northern ireland and scotla nd england, northern ireland and scotland during friday afternoon. temperatures mid to high teens. during the weekend that weather system will clear away and this high pressure is starting to build. still he were front messing into the west
of scotland. i do not think we will see much of any rain on that for so for most of us it is dry on saturday. the occasional shower across eastern parts. for most light when sun sunny spells. a northerly wind might make it feel chilly across the coast. sunday that week where the front bringing a bit more cloud towards the west of scotland. for most it is a dry day on sunday, fairly settled with bright sunny spells, especially towards england and wales, and temperatures about 15 00:28:37,815 --> 4294966103:13:29,430 to 19 celsius.