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UK Transport and Brexit News Views

Last week I met many of the senior UK politicians involved in Brexit and transport in London, and then in Brussels I met the senior EU officials negotiating Brexit for transport on behalf of the 27 Member States.  I sought to better understand the yawning gap that exists between both sides, so we could help bridge it. The gap is partly explained by different approaches to politics and major differences in the interpretation of the Brexit procedure, particularly for road, rail, sea and air transport. However the biggest difference of all is explained by either possession of different sets or ‘facts’ or, in the main, just a lack of facts. That is perhaps surprising given the innumerable documents, reports and statements that have been published in the past year by the EU, UK government, industry,  trade associations and think-tanks.  But despite the huge efforts some have made to address Brexit, there is still a lack of clarity as to what day one after Brexit will look like for our industry, and a lack of sufficient detail and evidence as to what the solutions are to mitigate any negative consequences. The good news is that whilst the politics and procedural issues will continue to bedevil the Brexit negotiations, probably until September next year when they must be concluded, these knowledge gaps can be plugged, and I believe contribute to the process of both establishing and reaching agreement on the solutions and perhaps avoiding some of the problems in the first place. Much more work needs to be done urgently on what day one after Brexit will look like for our industry, with arguments backed up by evidence rather than assertion. Much more detail needs to be gathered  to back up the solutions that need to be developed and agreed to ensure the best possible Brexit. Then above all we need to bring the different stakeholders, from the UK and EU, together so there is a much clearer understanding of the facts.  That’s something UKTiE will be prioritising in the coming weeks. As Einstein said ‘a clever person solves a problem, a wise person avoids it.’ If we can reach agreement on the facts then perhaps we can avoid many of the problems for transport in the first place. 1. UKTiE’s event in the House of Lords: “A Brexit Deal for Transport” UKTiE organised a briefing in the House of Lords titled “A Brexit Deal for Transport”. Speakers included Martin Callanan from the Department for Transport, Baronness Hayter, Shadow Spokesperson for DExEU, Andrew Haines, CEO for the Civil Aviation Authority, John Thomas, policy director for Rail Delivery Group and Emma Giddings from Norton Rose Fulbright. The event, hosted by Lord Berkeley, highlighted the need for industry to work together to ensure transport becomes a priority. 2. UKTiE met with Michel Barnier’s Task Force 50 On Thursday UKTiE met with the TF50, meeting important members of the team such as François Arbault, in charge of issues regarding the internal market and cross-sectoral policies, Peter Sørenson, in charge of transport questions, Jof Hupperetz who works with customs and Nina Obermaier who deals with Ireland. We gained some insight into the mindset of the TF50. UKTiE will be a source of information to help them during the negotiations. 3. Post-Brexit customs costs for business could hit £9 billion Post-Brexit customs costs for business could hit £9 billion, according to a new report from the Institute for Government think tank, and there is little to indicate the U.K. will be ready to undertake a successful exit from the EU customs union. Coordination will be a major problem, there is almost zero chance of delivering new technology or physical infrastructure before March 2019, and ports such as Dover and Holyhead lack the space for major expansion even if time were available. The report also highlights that ports on the Continent including Calais, Dunkirk and Rotterdam will need to be on board with any new arrangements. The report recommends the U.K. government begin a tour of national capitals to get governments on side. 4. Freight and logistics industry react to leaked Home Office Paper on migration Earlier last week, to much consternation, the Guardian  reported that, under plans found in a Home Office document dated August 2017, the UK would end the freedom of movement in March 2019 and introduce restrictions to deter lower-skilled EU migrants. In response the Freight Transport Association has said it will be making a submission to the Migration Advisory Committee on the reliance of the logistics sector on EU workers. James Hookham, FTA’s Deputy Chief Executive  said: “Whilst we support policies that are intended to make migrants and the country better off, disrupting the logistics industry would certainly have the reverse effect. Government policy needs to be more targeted and support and protect our vital industries, such as logistics, in the interests of everyone.” 5. Government pledges to develop ambitious post-Brexit export plan Transport secretary Chris Grayling, speaking ahead of a roundtable with maritime industry leaders, said that Brexit “will allow Britain to seize new opportunities and rediscover our heritage as a truly global, seafaring, trading nation”. The government said it will work with industry to deliver an ambitious export plan for when Britain leaves the EU, boosting trade opportunities, increasing jobs, and providing more investment in new technologies. 29 March 2017 – A50 triggered 5 April 2017 – European Parliament adopted Brexit guidelines 22 May 2017 – Brexit negotiating directives approved by Council 19 June 2017 – Negotiations formally began 18 September 2017 – Fourth round of talks 24 September 2017 – German Federal election 9 October 2017 – Fifth round of talks 19-20 October 2017 – European Council to consider “sufficient progress” TBC – UKTiE  & Norton Rose Fulbright Summit: Customs arrangements after Brexit. 28 November 2017 – UKTiE Annual Forum 30 September 2018 – Date by which EU’s chief Brexit negotiator, Michel Barnier, wants to conclude the terms of Britain’s exit from the Union. 30 March 2019 – Britain formally exits the EU, following ratification of Brexit by all other member states and the European Parliament. June 2019 – European Parliament election Mark Watts Co-ordinator UK transport in Europe (UKTiE)

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Its hard to get on board with buying

It’s not time to buy shares of Tesla, despite recent analyst optimism, one trader says.The electric-auto maker’s stock climbed nearly 2% on Wednesday after Deutsche Bank reiterated its buy rating, saying no U.S. competitor “comes close” to Tesla’s market leadership, and New Street Research issued a Street-high price target nearly 48% above Tuesday’s closing levels.Though the stock is down about 6% since Nov. 1, this is far from an ideal entry point, Tocqueville Asset Management portfolio manager John Petrides told CNBC’s “Trading Nation” on Wednesday.“Take a step back and ask yourself, if you didn’t own the stock today, would you buy it? And it’s hard to get on board from a fundamental standpoint,” he said.Tesla may be dominating the electric-vehicle market, but its stock is trading at extremely elevated multiples: around 22 times price to sales, 180 times enterprise value to earnings before interest, tax, depreciation and amortization and nearly 160 times price to earnings, Petrides warned.“I think the bar has been set so high that the margin of safety is just nowhere to be found for the stock,” he said.Tesla’s stock could also be risky on a technical basis, Miller Tabak’s Matt Maley said in the same interview.With the Federal Reserve considering an accelerated tightening timeline and China’s government clamping down on corporate debt, leverage and risk-taking, liquidity-driven stocks such as Tesla could have a difficult run in 2022, the firm’s chief market strategist warned.“Some of these innovative stocks are going to have to pull back a little bit even if Deutsche Bank is right on the fundamental outlook,” Maley said.With Tesla shares declining to key support at their 50-day moving average, a break below that could forecast more trouble, he said.“If it breaks below that level, which is just below $1,000, not only will it take it below the 50-day moving average, but also give it its first lower low in over six months,” he said.“If we break below that, it’s going to be very vulnerable to a much further drop, maybe even as far down as its 200-day moving average,” Maley said.Tesla shares fell by less than 2.5% in early Thursday trading to around $1,044.44.

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When is a motor show not a motor show

his week marks the beginning of Germany's biennial Internationale Automobil Austellung - or International Motor Show.Traditionally, it is a chance for the country to parade the enduring strength of its own car industry, while welcoming the biggest brands from around the world.But this year's event, held in the Bavarian city of Munich, promises to be very different.And that is not just because it is taking place as the pandemic still rages and the car industry appears to be an increasingly-tempting target for politicians keen to show off their environmental credentials.Changing gearsFor a start, this year's show won't just be about cars. Organiser, the German Automotive Industry Association, insists the focus is instead being placed on 'climate neutral mobility'. The city of Munich itself will open up roads and public spaces to allow visitors to try out new concepts in sustainable transport. And cycling brands such as Specialized, Scott and Canyon will take their place in the exhibition halls alongside the likes of Porsche and Mercedes.When the Covid pandemic hit early last year, major international trade fairs such as the Mobile World Congress in Barcelona and the Geneva International Motor Show were cancelled at short notice. Such events, which brought together thousands of people from all around the world, were simply untenable during a period of lockdowns, closed borders and quarantine restrictions.Munich is the first attempt to re-establish a high-profile motor show in Europe. Indeed, it is the first major international event in Germany since the country eased its lockdown restrictions. But making a success of it won't be easy.That's because even before the pandemic, the future of the traditional auto industry showcase was already hanging in the balance.The last IAA was held in 2019. Back then, it was the Frankfurt Motor Show, an event held on a grand scale. Each of the three major German manufacturers had a giant pavilion pretty much to themselves. Further vast halls housed companies from across the globe - all with their no-expense-spared displays of four-wheeled fashion.But frankly, for anyone who attended, the event was a form of purgatory. The show was simply too big. It took 20 minutes simply to get from one end of the showground to the other. It was always hot, stuffy and very noisy - leaving attendees, like myself, with a thumping headache and impressive blisters.But more importantly, it was becoming far too expensive. A large stand at any of the international auto shows costs millions - and many of the major manufacturers have decided it's not worth the money. Big name absences became commonplace, both at Frankfurt and at the Paris Motor Show.By 2019, after an event that was - embarrassingly - disrupted by climate activists, the organisers decided it was time for a change. They ditched Frankfurt, which had hosted the show since the 1950s, and head to a new city. Munich, on the banks of the Isar river, was chosen - but then came Covid. Running on emptyThe pandemic wreaked havoc within a motor industry that was already grappling with huge change. Governments, especially those in Europe, have been setting ambitious deadlines for eliminating the sale of new petrol and diesel cars. Emissions limits have been cut right back, and manufacturers have been rushing to develop electric vehicles. At the same time, the pressure is on to make cars ever more connected, and ever more automated. And all of that comes at a hefty price.Manufacturers were also facing mounting bills as a result of the pandemic. Initially, they were forced to close factories and dealerships; then disruptions to the supply chain made it hard to recover lost ground.What is happening in Munich this week, then, is an attempt to reinvent the motor show itself, at a time when many within the industry are questioning whether such events are luxuries they can no longer afford."Put it this way", one executive recently told me, "if you've already set aside several million Euros to attend a show, then it's easy to get the board to sign off on it. But if that budget has been diverted elsewhere, it's very difficult to get it back".As a result, in Munich, many of the World's largest carmakers will be conspicuous by their absence. There will be no General Motors, no Ford, no Toyota, and no Stellantis, which makes Peugeot, Citroen, Vauxhall, Fiat and Alfa Romeo vehicles, among others. Instead, the line-up is dominated by the three big German makes, Volkswagen, Daimler-Benz and BMW. They'll be joined by Renault, Hyundai, the Chinese manufacturer Great Wall, and the luxury electric vehicle specialist Polestar.But the organisers insist this is not a problem. The focus of the show has been changed dramatically, from a petrolhead's dream of the latest, sleekest and fastest four-wheeled machinery, to something designed to encompass all aspects of mobility - with tech companies, startups and bicycle manufacturers also being invited in."Mobility is one of society's foremost topics," explains Hildegard Mueller, the President of the German Automotive Industry Association"People all over the world are seeking better solutions to their mobility needs. The main focus will be solutions on the path to climate neutrality".But some things will not change. The manufacturers who are at the show are still planning to unveil plenty of new cars, though many of them will be electric; and we will still see plenty of futuristic 'concepts', fantasy cars created from the fevered imaginations of engineers given a licence to think big thoughts about the future.What's the point of concept cars?Why electric cars will take over sooner than you thinkBut the thing we're likely to hear less of this time is the 'sharing economy'. A few years ago, auto industry executives were convinced that fewer and fewer people would be buying private cars. Shared-use models would be all the rage, with people only using cars when they needed them.That idea hasn't wholly gone away - the rush to develop and commercialise self-driving taxis is still on, for example - but there's an acceptance too that the pandemic has made people aware that private transport does still retain some distinct advantages.Individual mobility has suddenly become a lot more valuable.

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Jimmy Lai convicted Lai convicted for taking part in Tiananmen for Jimmy Lai convicted for taking part in Tiananmen vigilJimmy Lai convicted for taking part in Tiananmen vigil taking part in Tiananmen

Hong Kong media mogul Jimmy Lai, along with two other prominent activists, has been found guilty for taking part in a vigil to mark the Tiananmen massacre.Lai, Gwyneth Ho and Chow Hang Tung were convicted for inciting and taking part in an unlawful assembly.They were among thousands who defied a ban and took part in a vigil last June commemorating the 1989 crackdown at Beijing's Tiananmen Square.More than two dozen politicians and activists have been charged over it.The trio were the last to receive their verdict as they chose to contest their charges. During their trial, they argued they had lit candles during the vigil in a personal capacity, and had not "incited" others to join the unauthorised rally.However District Court Judge Amanda Woodcock dismissed the arguments "frankly nonsensical" and said their participation "was an act of defiance and protest against the police".They will be sentenced on 13 December, and face a maximum of five years in prison for the charge of participating in an unlawful assembly. Who are the three activists?Lai is the founder of the now-defunct Apple Daily newspaper in Hong Kong, and has been one of the most prominent supporters of the city's pro-democracy movement. He was jailed earlier this year for taking part in pro-democracy protests.The Hong Kong billionaire risking it all by speaking outHong Kong's rebel mogul and pro-democracy voice Ho is a former journalist turned opposition politician, while Chow is a former lawyer and the vice chairwoman of the now-defunct Hong Kong Alliance - the group that organised the vigil every year.Both are also behind bars and have been denied bail, as they face multiple charges including some under a strict national security law that Beijing imposed on Hong Kong last year.What was the Tiananmen vigil about?The annual vigil has taken place in Hong Kong for decades, often attracting tens of thousands who gather to mark the anniversary of Chinese troops crushing peaceful democracy protests in Beijing's Tiananmen Square on 4 June 1989. International condemnation ensued after troops and tanks opened fire on protesters.Hong Kong used to be one of the very few places in China where the incident could still be commemorated or even talked about - it is highly sensitive in mainland China, which bans any events marking the incident and scrubs mentions from social media.But in 2020 Hong Kong authorities banned the vigil for the first time in 30 years, citing Covid restrictions. Activists accused officials of bowing to pressure from Beijing to muzzle pro-democracy expression. Tens of thousands of people defied the ban to attend the vigil that night, knocking down barricades that had been erected around Hong Kong's Victoria Park.The ban on the vigil continued this year, and saw a more muted protest.

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Instagram announces changes ahead of political grilling

Instagram has announced new features it says will help teenagers and parents manage time spent on the app.Parents will be able to see how much time their children spend on Instagram and set time limits, while teens will get reminders to take a break.It comes a day before Instagram chief Adam Mosseri is due to appear before US Senators investigating online safety.Instagram has been under increasing pressure over teens' use of the platform in recent months.Its internal research suggesting that teens blamed Instagram for increased anxiety was the first in a series of revelations in France Haugen's leaked documents from inside Facebook.The US Senate Committee is expected to quiz Mr Mosseri on Instagram's internal information on child safety and its plans - as well as what the committee calls "potential legislative solutions".The timing of the announcement by Instagram was "interesting", said social media consultant Matt Navarra."Instagram's boss will want to have something new and meaningful to show US senators when they grill him... the new features will give worried parents more tools to help keep their children safe when using Instagram, but many will wonder why it has taken them so long to act."Take a breakIn his blog post, Mr Mosseri announced the launch of the "take-a-break" feature, which he had tweeted about in November. It will be launched on Tuesday in the UK, Ireland, United States, Canada, Australia and New Zealand, he said."If someone has been scrolling for a certain amount of time, we'll ask them to take a break from Instagram and suggest that they set reminders to take more breaks in the future," Mr Mosseri wrote.The feature would also show them tips from experts to "help them reflect and reset", he said.Teenage users will get notifications to turn on break reminders, he said. Instagram also said it will launch a new tool for parents in March 2022, which will let them see how much time children are spending on Instagram, and set time limits for the app. Another companion feature will allow teens to opt-in to a system that will notify parents if the teenager files a report against an Instagram user. Time limits already exist on Instagram - users can voluntarily set a time limit per day and receive a notification when that limit is hit.Digital footprintMr Mosseri also unveiled a new system to bulk-manage Instagram accounts.Starting in January, a new system will let any user see all their posts, or all their likes and comments, in a chronological list - and select several at once to delete in bulk. Instagram defaults under-16s' accounts to privateInstagram for kids paused after backlashInstagram: A blessing or a curse?"While available to everyone, I think this tool is particularly important for teens to more fully understand what information they've shared on Instagram, what is visible to others, and to have an easier way to manage their digital footprint," Mr Mosseri wrote.Among the other measures announced on Tuesday were an expansion of the app's limits on messaging teens - so that now, people will no longer be able to tag or mention teens who do not follow them.

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TikTok jumps on online shopping bandwagon

The social media platform TikTok is making a big push into shopping. The video sharing app is famous for its short lip sync videos, dance routines and humour. And its popularity has soared during the pandemic.TikTok is now producing its first live shopping and entertainment event on Wednesday where people can buy products directly on the platform, tapping into the rise of "social shopping". Who is TikTok’s masked vigilante?Exclusion warning for pupils filming TikTok videosTikTok sued for billions over children's data"We think it's a really significant moment. E-commerce is a big opportunity for TikTok and it's something we're investing in significantly," said Rich Waterworth, TikTok General Manager, UK and EU. Whether it's sportswear or make up, consumers are increasingly browsing, discovering and buying items on social media platforms like Facebook and Instagram. TikTok, which launched in the UK in 2018, is now aiming to catch up. The pandemic has accelerated this shift. As stores closed during lockdowns, retailers raced to get more of their products online. Social media apps also really upped their game to help businesses and brands sell directly to shoppers.According to an Insider Intelligence report, from 2019 to 2020 the number of US social e-commerce shoppers grew 25% to 80m, a number which is forecast to grow to more than 100m by 2023. Now TikTok has chosen the UK to make its first major move into this online retail space, hoping a blend of entertainment and creative content can win it a slice of festive spending. It's already held some livestream shopping with brands over the Black Friday weekend but now it's producing and hosting its own two-day event anchored by Rylan Clark-Neal, with influencers, music and a quiz.

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UK to phase out TWO G and Three G

The UK will phase out 2G and 3G mobile services by 2033, the government says.The switch-off date has been agreed with mobile-network operators Vodafone, EE, Virgin Media, O2, and Three.In July, EE owner BT revealed plans to phase out 3G by 2023, and 2G later in the decade. And many other companies have already begun phasing out technology that support the services. Culture Secretary Nadine Dorries said the move would help the UK make a smoother transition to faster networks. Anti-5G campaigners fight on after legal setbackEE aims for 5G coverage everywhere in UK by 2028She said: "5G technology is already revolutionising people's lives and businesses - connecting people across the UK with faster mobile data and making businesses more productive." The government also promised a funding boost to help future-proof the UK's mobile networks, ending the country's over-reliance on a small number of suppliers and making it easier for new equipment-makers to enter the market."Today, we are announcing a further £50m to put the UK at the forefront of mobile connectivity and to make sure our telecoms networks are safe and secure now and in the future," Ms Dorries said.'Consumer-protection dimension'Assembly Research founder Matthew Howett told BBC News the change would probably come sooner than the government's 2033 deadline. The switch-off will affect all sorts of older devices, such as 3G-only smartphones.And it would be crucial for the government to act on behalf of consumers who may be slow to adjusting, Mr Howett said."There is an important consumer-protection dimension to all this," he said."You will of course have some people who may still rely on a 2G/3G-enabled handset to make calls in emergencies but also because devices such as smart meters run off the 2G network. "Involving these stakeholders will be crucial to avoid disruption."5G coverageIn July, Amazon warned users some of its older Kindle models would soon be unable to connect to the internet. "Starting in 2021, some prior generation Kindle e-readers will not be able to connect to the internet using cellular connection through 2G or 3G networks," the technology giant told its US customers.Meanwhile, 5G coverage is being expanded across the UK.In July, EE announced customers would be able to receive 5G "anywhere" in the country by 2028.

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