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This is Business Live from BBC News with Rachel Horne
The leader of the world's biggest economy gets ready
What will the world make of the Obama legacy?
Live from London, that's our top story on Tuesday 10th January.
The US economy has grown, but wage growth has lagged behind.
We'll assess the impact of the Obama Presidency.
We also have news from the world's second-biggest economy.
The goods it makes might be about to get more expensive.
Stay tuned to find out what that could mean for you.
The Ftse chalked up its tenth straight daily session
Are you taking a break from the booze after the excesses
We'll meet one man who hopes to turn abstinence into
But can non-alcoholic drinks really take over from the real thing?
During yesterday's metro strike in London, Uber prices
Are companies right to reflect increased demand?
Or do price hikes leave you feeling ripped off?
There are just a couple of weeks of Barack Obama's Presidency
remaining, and later today he gives his big farewell speech.
As well as being commander in chief he's also overseen
the world's biggest economy for the last eight years.
Well, since his inauguration in January 2009 more than 11 million
jobs have been added, with the unemployment rate
It peaked at 10.0% in Obama's first year in power.
The typical American family brings home nearly $54,000 a year.
That's almost exactly the same as 20 years ago,
Wage growth has been very low under Obama,
and has been called the "missing piece" of the recovery.
The economy has grown about 1.5% a year over
That compares to about 2% under his predecessor George W Bush.
One of the costs of that has been that US Government
debt has nearly doubled, from $10 trillion to $20 trillion,
during Obama's eight years in the Oval Office.
Marianne Schneider-Petsinger, US geo-economics fellow
at Chatham House, a think tank in London.
If you ask any president, you would not want to take on that economy. If
you were a teacher, you had to grade him on his economic, what grade
would you give him? Overall, let's not forget where he started. When
you talk about the economy, it was on the brink of depression. He
averted that, it was just a recession. Compared to when he took
it over, he has done a solid job, but it was not anything spectacular.
If you compare him to other presidents, he falls in the middle
range. Some may suggest it did not fall into depression because they
threw a lot of money at it. They pumped a lot of money in. Some say
not enough, though. I did not catch the wage growth. It is the missing
link. You have created these jobs, they lost a lot but they created
some. Why hasn't wage growth gone up? Many of the jobs that were
created were in low-wage sectors. There is pressure from overseas and
from technological change, automation is a key worry or stop
many of these jobs had that have been created are part-time. Many
people feel they are not making headway. There are a number of
issues that go together. How do you think Barack Obama will be feeling?
There are a lot of big issues, like his health care or trade deals,
which may not be lasting. How will he look at this? He hopes that with
some Democrats still in support of the things he has done, they will be
attempts by the Donald Trump administration to overturn them, to
chisel them down, but we will see, it is an open question. We have
spoken before, looking forward, Donald Trump and his economic
policies, there is a lot that people would look favourably on. Animal
spirit is back. In terms of the promised tax cuts and cutting down
on regulation. Businesses react favourably to that. They question
whether he can deliver on many of those promises.
Two prototype models of a highly-anticipated gaming
laptop have been stolen at the Consumer Electronics
They belong to the gaming company Razer, and each
It's the first portable laptop of its kind.
Razer said the devices were taken from its press room on Sunday,
and the Chief Executive Min-Liang Tan said they were treating the case
Volkswagen's chief executive for the North America region says
the company was "surprised" by the criminal charges laid
against the executive in charge of complying
The German carmaker has admitted installing secret software
On Monday Oliver Schmidt appeared in court in Miami charged with fraud
He chose not to enter a plea and was remanded in custody.
There are question marks about the future of Yahoo's
influential chief executive Marissa Mayer after it was revealed
she will not serve on the board of the company that is left behind
once Yahoo's core assets are sold to Verizon.
Five other directors will also not serve on the board.
We are looking at our web a cracking site. We will work with our UK
audience later, but Snapchat, or the company Snap, which owns it, they
are choosing the UK for anything outside the US.
It is a vote of confidence in the UK. If those companies come to
Europe, they go for Ireland. Says the Irish lady! Luxembourg, the
Netherlands. Could this be something to do with
the fine that Apple could be facing, 13 billion tax rebate?
It could be. Snapchat expected to go to the market this year.
A big float. It hopes to raise $25 billion.
We've had some numbers out of China which show that the world's
second-biggest economy could be about to push up the prices
of the things we around the world all buy from China.
Sharanjit Leyl is in Singapore and she's got the figures.
Just explain, how could these increases in China affect us as
buyers elsewhere in the world? Will it cause our prices to go up?
Possibly. Let me give you those figures, because they are
interesting. They grew at their fastest pace in more than five
years. The index for December was up 5.5% from the previous year, against
expectations of. That could lead China to export inflation two
nations around the world through its vast supply chains. This may prompt
manufacturers who are enduring those higher input costs to raise their
prices and pass them on to everyone around the world. Whether that
rebound will be sustained depends on how the global economy fares,
possibly under Donald Trump, and whether trade tensions flare between
the US and China. Consumer prices remain stable, rising just over 2%.
Others say that is an indicator that the real inflation seems restricted
to the industrial sector. Hard-hit is the mining sector, prices surged
over 21% in December from a year earlier.
The US dollar started 2017 at a high but it's been sliding,
along with the Dow on Wall Street, which closed down yesterday.
And Asian stocks were mixed, with a decline in Japan.
The Nikkei pretty flat, offsetting gains in Hong Kong,
This week we should keep an eye on the oil price.
It crept back up today after a fall on Monday over concerns
about whether output cuts by major exporters will be enough to support
the oil market as other producers have increased supplies.
And Samira Hussain has the details about what's ahead
More automotive news happening, General Motors will be telling
investors what they can expect from the number one American auto-maker
in 2017. Top officials will present the company's financial outlook at a
butcher bank conference in Detroit. It is held at the same time as the
Detroit auto show. Also happening, the Ford motor company CEO will
outline forecasts for 2017 financial performance at a conference during
the Detroit auto show. Investors will be watching for news on 2017
American market forecasts, as well as the outlook for Asia and Europe.
And Barack Obama will deliver his farewell address in his home city of
Chicago. Joining us is James Bevan,
chief investment officer at CCLA We want to talk about the American
market. But let's talk about the FTSE 100, the main market in London.
One record after another, but this is a story about the pound. The
pound goes down in value, the FTSE goes up. A very large chunk of the
earnings are overseas, either through export all through selling
overseas, and bringing the earnings back. Whenever the pound goes down,
profits go up, and vice versa. More bang for the buck. The American
markets, all eyes are on January the 21st, the President-elect takes
over. In the UK we have the weakness of the pound, in the US we have a
strong dollar, and many people think, if you are going to talk
about markets going up on the weakness of the pound, white is it
that American equities have gone up with a strong dollar. Donald Trump
is promising to cut tax substantially. Corporate earnings
will rise because the Government will take less money. If you join
and you should be tax cuts passed and you should be tax cuts passed
straight through to the bottom line is terms of earnings, the index goes
all the way. It is an overly optimistic perspective, but if you
said, let's cut the difference between some deflation of the
optimism and a revaluation on the back of that earnings numbers, maybe
2500. Looking at how the markets have gone up in the States, a lot of
it is on sentiment, we now know Donald Trump will be the president,
and he will invest in infrastructure and cut down on regulation and
taxes. Once he is in power and things either do or don't begin to
happen, at one point -- at what point will be see a reality check?
Have at least six months, because he will have to take the tax cuts right
through the process, and we don't know if you will backdate them to
early 2017 awful the date them to 2018. But the markets would begin to
focus anyway forwards. All of the sentiment we have had for the global
economy has been good, that has to remain in place, because it fits
begin to slide back down the hill, no matter of cutting taxes will lead
to better numbers. The US equity market is looking for 5% growth this
year and next year, and that is what we have to focus on. We will see you
shortly. We're all getting a lot more health
conscious these days, but can non-alcoholic drinks really
take the place of booze? We'll hear from a man who's hoping
to capitalise on the trend You're with Business
Live from BBC News. Snap, the company behind
messaging app Snapchat, is setting up its international HQ
in Britain, where it will book Many tech firms have
preferred Ireland, Luxembourg or the Netherlands
as their European tax base. Theo Leggett is in our
business newsroom. Snapchat, why this decision, it
bodes well for the UK economy and for London? A lot of social media
companies like Facebook and Google have run into trouble over setting
up tax bases in lower tax jurisdictions in Europe and then
diverting profits from other large markets into those jurisdictions in
order to minimise their tax bills. So schnapping is not doing that.
They are setting up in the UK and they're channelling the profits from
the UK first of all, but also from other countries where they don't
have a major base and that includes Australia and Saudi Arabia and
paying tax on them in the UK. Now, that tax bill at the moment won't
actually be very high because Snapchat's revenues are not that
high at the moment, but it is expanding rapidly. It is taking on
more advertising and it is expecting its revenues to go up in the near
future so there will be more money coming in and the money will be
going through the UK. Let's not forget. The UK itself as a major
economy has a low corporation tax rate. 20% at moment. It will fall to
17% by 2020. So by doing this, schnapp is avoiding the prospect of
big regulatory problems, like like the UK Government and the European
Commission clamping down on companies which have aggressive tax
policies and at the same time, it's basing itself in the UK where it has
a relatively low corporation tax rate. So I think that's what's
behind it. By the way, some of our viewers may not be familiar with
Snapchat, it is an app aim at younger people. If you're under 25,
you almost certainly will have heard of it. If you're over 30, maybe you
won't, but that's changing as well. Snapchat allows you to take pictures
and videos and send them and then have them deleted. It is becoming
more popular among people the same age as myself and dare I say it, you
too, Aaron. I'm older than you Theo! Thanks, mate.
Morrison, Christmas sales up. They are doing well, aren't they? Good
news for Britain's fourth biggest supermarket.
Our top story, President Obama is getting ready to make
He's expected to focus on his economic legacy especially
A quick look at how markets are faring.
We can see there the FTSE continuing that winning streak up and up,
pretty much every day since the start of the year. It is up almost
0.2%. The DAX up and the CAC down slightly. All the markets keeping an
eye on the oil price which had its biggest fall in six weeks over
concerns that some producers are making too much oil despite the Opec
agreement. You do like the markets! Let's talk
about something more interesting before I spit on the desk!
Now let's get the inside track on distilling and I don't
Herb and plant distillates have long been a medicinal tradition
in the east but when Ben Branson, a British tee-total marketing
executive stumbled across a copy of The Art of Distillation.
A solution to the problem of what to drink when you don't want to drink.
So inspired by craft techniques he set up soft drink
Since then Seedlip has gained investment from drinks giant Diageo
who seem to be betting on the rise of this adult market.
The founder and chief executive of Seedlip,
Guess what, he brought us? Nonalcoholic drinks! Sorry, I'm
probably not your target market here. Welcome to the programme. Are
you serious from a book? I know you've got the book, right? From a
book. Ladies and gentlemen, this book is 1664? The original copy was
1651. We managed to get our hands on a copy from 1664. This is original
recipes, nonalcoholic herbal remedies all the distilling
techniques that I found three years ago. So what prompted you? Was this
something you were thinking I want a business opportunity, I can see a
gap in this market? Was it that you were doing something else that
brought you into making nonalcoholic beverages? It was not a business
gap, business opportunity. Seedlip is just a product of my upbringing.
Halfify family have been farming for over 300 years and we still farm
today and that's really important. The other half of my company are in
brand design. I grew up in the countryside and then went to work in
brand design and I put the two together. You have an unusual, did
you go to university? No. No. You did work experience for a big vodka
company at the age of 14? I was doing work experience for brand
design agencies from the age of 14 and got to work on some fantastic
global brands. And so got a real insight into what it means to create
one. I imagine the biggest booze maker in the world, Diageo,
investing in you, which is kind of strange, but it sort of suggests
this is a growing market? I think we're now in an age... Who are you
targeting? We are in an age where you can go to a restaurant and have
all kinds of food, it doesn't matter what allergy you have got and it
doesn't matter what you want from wherever in the world, if you want
an nonalcoholic cocktail, you can do the same. If you're not drinking for
whatever reason, the options are poor, they are one dimensional and
sweet and fruity and there is no theatre, there is no adult
sophisticated flavour that we're trying to do. You know, I like a
drink. My wife will nod to that. I haven't even tasted this. We've
mixed it with tonic water. They are both mixed with tonic. We have got
two products. Isn't the problem, it is not a problem, the issue, you
were saying, you wanted other options? I have got three children,
every time I was pregnant the offers of what you wanted to drink were
limited. So I can see the appeal of an item like this, but your price
bracket, it is ?27 a bottle. That's expensive. 40 bucks, that's $40 of
the that's pricey. It is pricey. Because it takes us a long time to
make. So we're individually distilling each individual
ingredient. Two of the ingredients come from my farm, my hay, my hand
picked peas, the craft that goes into this and the actual time and
hand labour means that actually we're creating something that's
really grown-up. Here is my point. For a drinker like me, is it all
about the taste? It might be, but you don't get the buzz? You don't
get the feeling. I'm not talking about pregnant. If it is a Monday
lunch time or you're driving or as we are in dry January and you're
having a month off, the opportunity to have a great grown-up
nonalcoholic drink should still be there regardless of drinking for the
effect. I think the effect of wanting to feel part of the group or
wanting to feel like you're not the dummy in the corner drinking orange
juice. This product, that's filling this gap in the market for adult
drinks. There are a lot of other companies rushing in, Britvic have a
company launching a similar sort of, more savoury alcoholic alternative
rather than the fruity ones. We have nonalcoholic wines being introduced
by one of the upmarket cordial companies. Is there room for you as
well? We are the world's first distilled nonalcoholic spirits. So
we are taking the same rituals of a spirit mixer of a vodka and Coke and
of a gin and tonic that sits on the back bar that means you can make
something at home so we're taking that side of the market. I guess we
want to solve the problem of not drinking. If other people are coming
in and helping to build that owication, happy days. Ben Branson,
thank you. You can come back and see me when you've put some alcohol in
that one and we'll talk them. I'm not your target market, I'm sorry!
In a moment we'll take a look through the Business Pages but first
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What other business stories has the media been
James Bevan from CCLA Investment Management joins us again.
James, thank you for hanging around. Now, earlier we asked people to send
in any tweets they might have. We were asking about the Uber story,
there was a Tube strike in London and some Uber charges went up by
500%! Was that supply and demand? Is that fine? Is it OK to cash in? It
is the core part of the Uber business model. Uber pays by the
mile and the time spent behind the wheel and there is a loading factor
to get people to join the ranks of the drivers when demand rises. When
there is a strike in public transport, demand goes through the
roof and hence the loading goes up hugely. Some tweets have said,
"Look, they are really cheap norm times. This is their opportunity to
cash in." There is a legitimate problem when
there was too much traffic and you hope you're going to get a fast ride
and you don't. The road system is not good at coping with huge
volumes. It is not an Uber problem. Another company that is weighing
what is it going to do with president trump's dislike for cars
made in Mexico and sold in the US? It is made in Mexico and sold in the
USment there are successful car companies like Nissan and VW and BMW
that manufacture in Mexico and sell around the world, not specifically
to the United States. However, Ford and GM have definitely decided in
the past that they would want to manufacture cheaply in Mexico and
export to the US and they will have to re-think their strategy. James
Bevan, thank you very much for joining us today.
Thank you for the tweets. We're running out of time to mention them,
but a lot of people saying focus on the taxis as well, not just Uber. I
will. Bye-bye. Hello. It looks as if it will be a
fairly cloudy day for many parts of the British Isles and there is a
chance of rain on a weak weather front for many areas too. But it is
not all doom and gloom. There