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This is Business Live from BBC News with Aaron
Japan's Prime Minister is in Washington to talk trade
with President Trump but who'll come out on top of the leaderboard?
Live from London, that's our top story on Friday
Yes, touchdown - the leader of the world's third biggest
And when he takes to the golf course with President Trump,
he's going to have to defend why Japan sells more to the US
Also in the programme - it's back!
Greece's debt crisis returns to haunt Europe.
Can its lenders agree a new deal, or will we have
And we'll tell you why some solid numbers from China continue
And those Trump promises pushing Wall Street to more record highs.
And as President Trump orders a review of the financial rules
designed to stop another nightmare on Wall Street, we'll be getting
the inside track from our Economics Editor Kamal Ahmed on that
and the rest of the stories he's been covering this week.
As snow hits New York City, how much do you think it costs
to clear an inch of the white stuff off the streets?
One dollar? One hundred Dollars?
We'll give you the answer at the end of the show.
We start in the US where, as you've been hearing,
Japan's Prime Minister Shinzo Abe meets President Trump later.
Remember, one of Mr Trump's first actions as President
was to withdraw from the 12-nation Trans Pacific Partnership trade
deal - signed by Obama - and strongly supported
Mr Trump called it a 'terrible' deal for the US.
He wants a fairer trading relationship with Japan -
Last year Japan sold almost $69 billion of more stuff
to the US than it bought from the US.
That 'trade surplus' as it's called is one of the biggest any
To give you an idea of why - look at this.
In 2015 - the latest figures we have - the US exported a little over
Here's how many Japanese cars were sold
that year in the US - 17.5 million - that's
Here's a vital point though - most of those cars are actually made
Mr Abe is expected to stress that 1.5 million American jobs rely -
either directly or indirectly - on Japanese carmakers.
On top of this - you have the so called
Mr Trump has claimed the Japanese Yen is kept
artificially low against the Dollar to help Japanese exporters.
A weaker yen makes Japanese goods cheaper.
And there's another big figure that is causing tension.
$5.5 billion was the bill to keep US troops in Japan last year.
Japan actually paid for almost half of that -
according to their defence ministry, but Mr Trump says the US
is shouldering too much of the burden of security
So - how best to diffuse all this tension?
Fung Siu, Asia, Regional Manager - Economist Intelligence
Thank you for joining us. Let's start with trade. Aaron has given us
the figures, what looks like a huge trade surplus, but part of that is
caused by the car sales, which are supporting American jobs. So maybe
that headline figure is not as bad as it looks. Completely, most of the
car sales in America are actually manufactured in America by
Americans. Yes, there are exports from Japan, auto exports to America,
that is not the whole picture. You have machinely exports and optical
goods. But America doesn't just have a trade deficit with Japan, it has a
trade deficit with the world and has done for a few decades. President
Trump picking a fight with Japan, he would have too pick a few fights
with the other countries. What do you think Shinzo Abe wants to
achieve from today? He obviously was not pleased that America pulled out
of TPP, in terms of trade agreements, what do you think
they're looking for? I think Shinzo Abe is disappointed that TPP has not
been ratified. Japan had ratified it. But to say that in that front,
Shinzo Abe at the start thought he could persuade Trump to come around
to his idea that TPP is a good thing. I think he has ditched that
idea and I think Shinzo Abe is prepared to enter into by lateral
trade agreements. The US have said Japan is manipulating their currency
you go from there? The weaker yen you go from there? The weaker yen
quantitative easing that Japan quantitative easing that Japan
launched in 2013. One side effect is the weak yen. That is because Japan
is lacking inflation and wants to import inflation. This policy will
go on, but it has ups and downs a and last year the yen appreciated,
so I don't think President Trump has much to say on that front with
regard to that particular year in the yen's performance. Thank you. Do
you know anything about golf? No, #3w I do know that Super Mario is
high on the list and they will play golf. I'm wondering who will win.
They can play golf on the Nintendo. But it is, not quite the same thing.
Some of the other stories making the headlines.
Renault has posted record annual sales -
up 13% with net income rising 16% to 3.5 billion euros.
A series of new product launches boosted Renault last year,
helping it increase its market share in all regions.
Lower-cost models such as the Duster and Kwid also sold well.
Arcelor Mittal, the world's largest steelmaker, has posted its first
annual profit in five years, showing signs of recovery
The Luxembourg-based group reported net income of $1.8 billion in 2016,
even as sales fell just over 10%, but its debt pile shrank.
This is in contrast to the $7.9 billion net loss that ArcelorMittal
made the year before - its worst financial performance
since the mega-merger of Mittal Steel and Europe's Arcelor in 2006.
Now golf, Trump and Shinzo Abe will be playing golf. We could join them
for a four-ball. I think President Trump will have to play more golf
with the Chinese president. We had numbers from China. If President
Trump is not happy with surplus from Japan, he won't be happy with the
surplus from China. Lisha, this is an astonishing number
and it is just one month's worth? Yes since we are all about the
numbers today and deficit, according to US data, the US/China deficit
last year was $347 billion. So they will have to play lot of golf to get
through these tensions. So we have been speaking about that call
between President Trump and president Ping and how that
alleviated tensions over the one China policy. But this issue around
trade will be the real battleground. China's trade surplus is at its
highest in nearly half a year, that is $51 billion and President Trump
has been arguing that China is benefitting at the ex-pension --
expense of America and we saw exports rise in China and we are
going to have to watch and see how the game goes. Watching and waiting
indeed. Have a great weekend. Going to keep the market wrap short,
but yes Asia stocks liking those Chinese trade numbers
as well as the continued record Europe, following suit as investors
keep their eyes on President Trump as he promised to unveil a major tax
announcement to lower OK, let's go and find out what'll be
making the biz headlines in the US. Much of the attention on Friday will
be in washing tovn when President Trump meets with Prime Minister
Shinzo Abe at the White House. There is still some other economic news,
including labour department report showing that import prices rose in
January after a 0.4% increase the previous month. The update to
consumer sentiment index is out and it seems it may have spliped
compared to the previous month and for an economy that relies on
consumer spending, it is important to see how confident people are
feeling and how much that will influence how they spend and finally
earnings still continue, the advertising company Inter Public
shows a slight rise, as the economy showed momentum. Thank you.
Joining us is Sue Noffke, UK Equities Fund Manager at Schroders.
Let's start with the markets, because Aaron mentioned about
President Trump's promise to help with regulation and he has promised
a phenomenal new rules on regulation. But still no detail. No,
but a timeline of two to three weeks. The market had begun to pause
a bit about where was the detail, it was looking more complex in terms of
border adjustment trades and taxation and the deregulation with
industries. And he ignited the airlines with further deregulation
and tearing up lots of red tape around that sector. So that got the
market excited again. Pushing it to further highs. It is highlighting
the markets. You said, we don't have any details, he just said in two or
three weeks I will tell you. Phenomenal. About a tax deal and the
markets react. It would be a big deal. If he can do things with
deregulation and stimulate the economy. The markets will love it.
The attempts to tackle taxation, which is very complex and high in
the United States, it has not been easy for any of the administrations,
because they haven't had consistency between political parties. Now we
have got the Republicans in all the various seats, something could
happen. That would be no doubt a corporation tax, you said taxes are
high, they have one of the highest in the world around 35%. For
individuals it is simplification of the tax code and helping investment.
That tax cuts and the corporate boost to the US economy. That is the
plan. If he can get the tax cuts through that would be the result.
You will be back to do the papers. Still to come: We'll get
the inside track on the big economics stories of the week
from our Economics You're with Business
Live from BBC News. The UK's high street has just
experienced its worst January January's like-for-like
sales declined by 0.1%, marking the first negative growth
in the crucial January discounting period since 2013 and comes hot
on the heels of a dismal December. This according to accountancy
and business advisory firm BDO who's head of retail,
Sophie Michaels joins us now. Great to have you with us, really
poor numbers, what is going on here, are we spending less, is it the
weather, is it Brexit? That's right, so January followed a poor Christmas
sales, which will lead retailers concerned into 2017. But if we break
that down, the first two weeks of January we saw positive sales.
Showing that the consumer is out there looking for bargains. The
third week we saw sales were dented by poor weather. And going to the
end of the month, as retailers transitioned from a sale period into
full price, the consumers backed off in terms of spending, leaving an
over all drop in sales in January. Looking at specific parts of the
sales, were there any bright spots? I believe there was an increase in
the amount of discounted home where we were buying, and the seasonal
increase in online sales. That's right, particularly in that week of
poorer weather. The consumer was taking a more comfortable position,
shopping from the armchair as opposed to in the high street.
Overall, we saw a decline, and homeware saw an increase in sales.
But as we move into a period where there is higher expectation of
inflation, perhaps that is the area, the discretionary spend, where there
is more of a concern that it would be challenged. Thank you for joining
us. Let's take a quick look at the tablet. Thunderbirds... I always
wanted a model of Thunderbird two. You can get them. Make your own from
cardboard. ?10 million worth of grants for the development of
spaceports, but not everybody is a fan.
You're watching Business Live - our top story:
Japan's Prime Minister Abe is in Washington to meet
The leaders of two of the world's three biggest economies will discuss
Tokyo's trade surplus with the US, jobs, investment annd currencies.
Let's like a quick -- let's take a quick look at how the markets are
doing. We're waiting to see if anything interesting comes out of
that meeting with Shinzo Abe and Donald Trump.
Today Greece has to pay back 1.4 billion euros to its creditors.
It's the latest instalment on the country's 320 billion
And it's just one in what will become an avalanche of payments over
We're now joined by our economics editor Kamal Ahmed
Thank you for coming in. Looking at the schedule of payments, it's a
couple of payments over the next six months, but they really need to get
it sorted now before Europe gets distracted by elections. There was a
lot of politics in what is going on. This is the sixth year of the Greek
debt crisis, which started in 2010. There is real tension between the
two main creditors, the IMF and the EU. The IMF is split itself. It is
saying that the economy in Greece is growing reasonably, and it still has
on the table the idea of debt relief, that some of Greece's bets
just will not be paid. The EU, particularly led by Germany, and
with elections coming up, do not want debt relief on the table. They
want to keep the very strict conditions around debt relief on
Greece, that it has to provide this primary surplus of 3.5%, which is
very high, and the two are approaching this at loggerheads. We
had this in 2012, and again in 2015, when Greece nearly came out of the
EU row, nearly defaulted. We have the same pressure now, and with
elections in the Netherlands, Germany and France, as you say,
there is a real concern in the EU that this controversy will play into
those elections. Come the end of the year, the Greeks may not know who
they will be dealing with. I have to move on to the next subject, but
with the elections... There could be different leaders. Who may not have
an appetite at all to give more money. And a different approach. The
paper Germany is that if debt relief Greece comes back onto the table, it
will be controversial and could damage Angela Merkel's chances of
winning the election. We want to talk about China, but I want to ask,
briefly, with Brexit already in play, before Brexit we were talking
about the Greeks leaving the EU. Do you think that the Greek exit could
be easier now? I think it is politically less likely. Germany and
the rest of the European leaders do not believe, and even less than they
did in 2015, that another country leaving after Britain has decided to
leave would be so destructive that I think there will be even more effort
to ensure that Greece remained in. Let's talk about China, we had that
overnight phone call between Donald Trump and see Jean Ping. -- Xie Jin
Ping. There was the controversy over the one China policy. Donald Trump
took a call from the leader of Taiwan, which was considered
politically insensitive, but they have gone back to the status quo of
saying that America believes in the one China policy. Importantly, the
temperature has come down between the two largest economies in the
world. Donald Trump accused China of raping the American economy. It was
described as a cordial phone call, and it eases tension and puts off
the notion that America could impose high tariffs on Chinese goods into
America. That means that the notion of a trade war, which I think was a
possibility, is now less likely. In 30 seconds, the regulations in the
US that Donald Trump wants to rip up. Not quite ripped up, but he
wants to reform them. Some people say reform is sensible. The big
thing is, reform of regulation in America, change of regulation in
Europe because Britain is leaving - as soon as regulatory systems
change, it leads to financial volatility. Yellow might very
succinctly done. You have done that before! -- very succinctly done.
The issue of fake news on social media has grabbed
headlines since the 2016 US presidential election.
But how do fake news sites keep themselves going and make money?
Fascinating, wasn't it? You can find out more about fake news on talking
business this weekend. The times differ depending where
you are and are on your screen now. Sue is back. We are going to look at
the papers. Did you find this story? It was Jonathan. Ryan has been
googling. You said the average cost to clean up snow in New York, per
inch, $1.8 million. I asked what you thought and you said about 5
million. I did. There are a lot of streets in New York, and they have
to do it overnight. 6500 miles of road. And the budget was $88
million. So, if it doesn't snow, do you get to plough that back into
schools? Not exactly, because you still have to have the snowploughs
and had people on stand-by. Let's move on and look at Australia,
Aaron. I saw this today, but I have two sisters in Australia, and one of
them said that in the last month, they have had three blackouts. In
Sydney, it's unheard of. It is because it is so hot, and everyone
wants to cool their homes, their offices, to have cold drinks, and
there's not enough power at peak times. It doesn't bode well. I
thought we were better than that. You know, there is just not enough
supply for the amount of demand. They are asking businesses to shed
some load. It is the Chinese, they have bought all our coal. They have
no coal left. We have one story left, from the Telegraph. Banks want
Labour to tear up -- banks tell France the terror at labour code if
it wants Brexit business. Is it shows how long it takes to work
through a notice period, as whereas high pay rates, high taxes and
possible caps on bonuses. Not a lot of flexibility, which is what banks
really want when they are looking to deploy their operations. Hi and who
knows who will be elected? -- and who knows who will be elected? That
is it from Business Live, there will be more business news throughout the
day. Signs of change next week, but for
the time being, the weather is stuck in a rut, a cold rut. We are drawing