tv Business Briefing BBC News July 24, 2019 5:30am-5:46am BST
this is the business briefing. i'm sally bundock. lam i am live outside downing street. in a few hours from now the uk will have a new prime minister. borisjohnson have repeatedly refused to rule out a no—deal brexit, but are businesses ready for that? the usjustice department announce an investigation into leading online platforms, to find out whether they are unfairly restricting competition. and on the markets: they are headed higher in asia today with investors weighing signs of progress in us— china trade talks
and prospects for the tech industry after the us opened an anti—trust probe. in a few hours' time borisjohnson will enter the door behind me as the uk's next prime minister. brexit is of course the big issue facing the new leader — and throughout the contest for the job he made a series of key pledges about leaving the eu. so, what can we expect? mrjohnson has vowed to leave the eu by the 31 october deadline "come what may". he claims that the chance of a no—deal brexit is a "million to one" he wants to negotiate a new deal, including replacing the irish backstop — designed to avoid a hard border between northern ireland
and the irish republic. mrjohnson says the backstop could be replaced with so called "alternative arrangements", including a technological solution to avoid physical customs checks for lorries crossing the border. he says he won't hand over the $48 billion — or £39 billion — divorce settlement with the eu until the uk gets a new deal. if a new deal is not agreed, he will ask the eu for a "standstill period" to negotiate a free trade deal. mrjohnson has argued that a provision under the general agreement on tariffs and trade, known as gatt 2a, could be used for the uk to avoid tariffs for the next 10 years, but he's admitted it would still need sign off from the eu. ann francke, ceo at the chartered management institutejoins me now.
good morning. you and i have discussed this for many months and one of the things you have pointed out to me is the fact that their way this has been managed, the way it has been led has been a key problem here. borisjohnson will be announcing his team and will begin those announcements may be later today and tomorrow. what are your hopes? my hope is that you see not the do or die brexiteer boris but more of the boris that was mayor of london for many years in that position he gathered credible experts who knew what they were doing and he actually listened to them and delivered quite a lot. he stimulated investment and ran a wonderful olympics, boosted confidence not just wonderful olympics, boosted confidence notjust with words but with concrete action and that is very much what is needed here. he needs to restore confidence and trust with concrete actions and he
needs to listen to credible people around him. so his team is critical in many ways. but many are looking at and many have said to us, that the arithmetic and parliament, regardless of who his team is, means he has an uphill struggle and the stalemate within parliament is not going to change and it may get worse. that is true. and that is where compromise and collaboration become even more important. that will be very tricky because he has so will be very tricky because he has so many competing interests and they have become entrenched. i do think that there are early signs, for example appointing andrew griffiths an experienced business person and the appointment of the chief whip shows he may be reaching out and becoming more collaborative. that is absolutely essential for the next leader here.
in the meantime, many are calling on him to soften what they describe as his hugely worrying stance on brexit. one of those is carolyn fairburn, the director—general of british industry. she says they are deeply concerned about a no deal. all business is concerned about no deal. indeed, many big businesses have had the luxury of being able to prepare for that. don't forget, 99% of the business in this country are small businesses and they are the ones who would be hugely damaged by ano ones who would be hugely damaged by a no deal brexit and they cannot possibly prepare for all that uncertainty and the multifarious scenarios. that is why it needs to be avoided at any cost. always good to talk to you. we hope to do it again soon. thank you for being on the programme. let's look at other business stories now. reports say that nissan plans to expand job cuts to over 10,000 to help turn around its business.
that would include the 4,800 job cuts it announced in may. let's go to our asia business hub where rico hizon is following the story. lovely to see you. what is nissan likely to say? the job losses could be mainly in factories outside of japan according to sources and this will certainly increase fears ofjob losses at the nuclear operations in sunderland. workers there, around 7000, already face uncertainty due to brexit and the carmaker ‘s decision not to build the new model in the north—east of england. and nissan spokesperson did not comment on the report but sources say they could announce the job cuts when the quarterly earnings are announced tomorrow. before the report, there had already been red flags showing wea k had already been red flags showing weak numbers this year and falling sales in the us and european markets. the impact of the arrest of the former ceo and financial
misconduct charges and tensions with its french partner that owns almost half of the manufacturer. in may, nissan reported profits to march 2019 of $2.9 billion, a decline of 5796 2019 of $2.9 billion, a decline of 57% compared to the previous fiscal year and its lowest number since 2009, when the company was struggling in the wake of the global financial crisis. expect a major announcement from nissan on these job cuts on thursday. thank you very much. we will keep an eye out for that. now let's brief you on some other business stories. the white house has signalled that face—to—face trade negotiations with china are set to restart. donald trump's economic adviser larry kudlow welcomed a report that trade representative robert lighthizer is scheduled to travel to shanghai. mr lighthizer‘s office has yet to comment on the report. the us has announced an investigation into leading online platforms, examining whether they are unfairly restricting competition.
the justice department didn't name any companies, but facebook, google, amazon and apple are likely to be scrutinised in the wide—ranging probe. it marks the latest scrutiny of the tech giants' power over the american economy. the company behind social media app snapchat says it added 13 million daily active users in the last quarter. snap inc beat analysts' estimates as it got a boost from a better version of its android app and the launch of new augmented reality photo lenses. shares of snapjumped 9% in after hours trading. we have many companies reporting their earnings this week and ford is one of them. ford will announce its latest earnings later, after showing
a strong first—quarter on growing demand for its pickup trucks and suvs. ahead of that the carmaking giant has revealed details about its plans to develop an all—electric version of america's best selling vehicle — the f150 pickup. bbc business correspondent michelle fleury has more. ten double—decker train cars weighing over1 ten double—decker train cars weighing over 1 million ten double—decker train cars weighing over1 million pounds. being towed by a truck. that is impressive! but this is no regular cup. it is ford's electric f150. the goal, to convince customers that switching from a combustion engine is not a downgrade. we think electrification is an important trend and we want to be prepared for it. we want to create that future. 40 spending $11.5 billion to electrify its product line up by 2023. a customer is to make the switch? most drivers still purchase conventional gas cars.
switch? most drivers still purchase conventional gas carslj switch? most drivers still purchase conventional gas cars. i don't have a crystal ball. many things will drive the acceptance. our strategy is to embrace it and plan to our strength. entering sectors such as pickups and electrifying our most iconic models. gimmicks to promote electric vehicles are not new. remember this? a tas love pulling a boeing 787 dreamliner? ford's alert trick truck is hauling three times that load. still, no timeline for the electric f1 50 to hit the showroom floor. a staple of farms and construction sites, carmakers know that the truckers beloved in america. changing the hearts and minds of drivers will be the key to realising a future that is electric. that have one more
quick look at the financial markets. japan has held onto the gains. again slightly off the back of the result from the leadership race so it is holding onto that. we are watching the pound sterling of course. if the uk looks like it is heading out of the european union with a no deal, thatis the european union with a no deal, that is where we will lose value. as you can see, on the whole markets across asia are doing well. looking ahead to many things including the european central bank meeting on thursday. that is your business briefing. stay with us here on bbc news. it will come as no surprise to anyone watching in the uk, that the country is currently in the middle of a record breaking heatwave. but it's notjust the britsih
who are feeling the heat. the rest of europe has also been sweltering — as leigh milner reports. lots of families waking up this morning will no doubt be heading to a beach like this one. here in bournemouth yesterday temperatures reached 30 degrees. the sea was almost as crowded as the sand. with the jetstream drawing heat almost as crowded as the sand. with thejetstream drawing heat up almost as crowded as the sand. with the jetstream drawing heat up from africa, you would expect this fellow at the safari park to be used to it. but that i slowly will not last long on thursday with temperatures set to soar above 38 degrees, making it the hottest day on record for the uk. and it won't just hottest day on record for the uk. and it won'tjust be the hottest day on thursday either. we also expect the hottest night as well. forecasters recall that by measuring the lowest temperature before things start heating up again in the morning. on thursday, it could reach above 23 degrees. meanwhile overseas, france and germany are
also expect heat. in the netherlands and belgium it is expected to top 40 degrees for the first time. fortu nately degrees for the first time. fortunately in portugal, firefighters say the wildfires have finally been brought under control. but right across europe, the advice given by health experts is to stay in the shade and keep hydrated. coming up at six o'clock on breakfast, dan walker and louise minchin will have all the day's news, business and sport, including the latest developments as borisjohnson prepares to enter downing street for the first time as prime minister after his predecessor, theresa may resigns. he faces the country's biggest political crisis in decades with parliament still deadlocked over brexit. plenty more coverage throughout brea kfast. this is the briefing from bbc news. the latest headlines: borisjohnson will become
britain's next prime minister within the next few hours — after winning the conservative party leadership contest. he'll make a number of key cabinet appointments — as he tries to chart a course through the country's political crisis. parts of europe are in the grip of the summer's second heatwave — with south west france worst affected — reaching 42 celsius. the world meteorological organization says the rising temperatures bear "the hallmark of climate change". now it's time to look at the stories that are making the headlines in the media across the world. there's only one story today — it is of course the election of borisjohnson as the new prime minster of britain. the daily telegraph takes inspiration from mrjohnson's victory speech proclaiming: "i'm the dude" — a reference to the acronym he used to sum up his aims to deliver brexit, unite the uk, defeatjeremy corbyn
and energise britain. onto the sun now, which has the headline "hey dude! don't make it bad." it picks up on the same moment from mrjohnson's speech, adding a pun on the beatles hit heyjude. the daily mirror strikes a less optimistic note, warning: "it's really not funny any more". its front page has a selection of pictures of the former mayor of london's less serious moments, including when he got stuck half way down a zip—wire during the london 2012 olympics. there's a warning on the ft from the international monetary fund. it reports that mrjohnson risks causing a global economic shock if he leads the uk out of the eu without a deal. the organisation said on tuesday that a no—deal brexit ranked alongside us trade policy as one of the chief threats to the world economy. the bbc online looks at the announcement by the us justice department, that there will be an investigation into leading online platforms —