13/01/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Thompson.


President Obama says the US is the strongest and most durable


economy in the world, but what do his critics


That's our top story on Wednesday, 13th January.


President Obama took office at the height


So how successful are his policies and what economic legacy


Forget the doomsayers, China sees a sharp bounce back


in exports and the markets are on the rise.


And the trading day has just begun in Europe and so far so good


as share markets track the gains seen in Asia and the price


Why only nine of the world's top 100 law firms are led by women.


We meet one of them who tells us why in a male dominated profession,


So what about you, has your gender helped


Or does this age old debate get on your nerves?


We want to hear from you, use the hashtag BBCBizLive.


In his final State of the Union Address,


President Obama said the US economy is the strongest and most durable


But he called for more progress on equal pay,


We are in the longest streak of private job creation in history.


APPLAUSE More than 14 million new jobs, the strongest two years of job


growth since the 1990s, unemployment rate cut in half. Our auto industry


just had its best year ever. Inheriting


the post recession economy, he says his administration saw more


than 14 millions jobs created. Unemployment hovers now


near record lows 5% though as the President


said wage growth has failed to keep


the same encouraging pace. Those positive


indicators combined with steady GDP growth saw the first Federal Reserve


interest rate rise in December And under Obama -


the power of Wall Street The Frank-Dodd Act brought into law


measures to stabilise financial institutions as well as offer


greater protection to consumers. Some though, have suggested it


doesn't go far enough to stave off Zayne Wickett is the head of the US


and the Americas Programme Sally running through the issues


that faced the Obama presidency. What do you think will be his


lasting economic legacy? Well, I think the thing he will define as


his legacy is the fact he took the presidency during a recession that


turned into what we now call the Great Recession and seven years on,


presumably eight years on by the time he leaves, you know, as Sally


already said, job creation, low unemployment, GDP growth is back


again, he will probably neglect to mention the fact that inequality is


higher than ever, but we have to remember just as a little caveat


there, is what we will think as his great legacy, presidents don't have


huge influence on a nation's economy, it tends to lag behind


often what they do, lags behind the impact on the economy, but


nevertheless that's what we will see as his legacy. It is interesting the


point about whether presidents have that direct impact. I suppose you


might feel it keenly in reigning in the power of Wall Street and


reigning in the power of the big banks. Banks still have the ability


to do what they want to a certain extent. Is that criticism fair?


There is criticism on both sides. I think if everybody is criticising


you, you're probably getting it right. A lot of people are saying


the regulation hasn't gone far enough and others are saying the


regulation has gone too far, it is restraining the American economy, it


is restraining private sector investment, private sector growth,


so I think there are both sides of the story which probably means he is


just about in the right place. You touched on the economic resurgence,


growth is slow and steady, it is not the rebound that many would have


liked, that in a climate of a world economy that we see the impact of


China and a slowdown elsewhere, and Europe is sluggish, how excited can


we get by modest growth in the US? It is a great question. I would


suggest you look at the narrative. Five years ago, we were talking


about China being the engine behind global growth. We're no longer


really talking about that. What we tend to notice is America is


reliable, it's stable and that's where a lot of investment is


returning because of that, because of energy revolution over the last


few years, investment is flooding back into the United States. We are


beginning to see America once again as the engine of global growth.


American productivity is increasing. Again, there are all sorts of signs


that suggest that America is actually here to stay in a way that


some of the other os sill lations from the other countries is not so


great. One we'll watch closely. Thank you for talking us through


that. There is a lot more analysis of what


President Obama had to stay in the State of the Union address online.


Oil is trading just above the $31 a barrel mark -


On Tuesday, Brent crude fell as low as $30,


while the US benchmark, fell below $30 a barrel.


Prices have fallen sharply as a result of too much supply


Meanwhile Brazil's oil giant, Petrobras, has announced a massive


scale back of its investment plans as a result of lower prices.


Petrobas will slash investment by $32 billion


And the end of an era for Internet Explorer users.


The software that got millions online is being phased


It will end support for all but the newest version


of Internet Explorer - potentially exposing millions


The company will no longer support versions 8, 9 and 10 -


meaning there won't be fixes for new vulnerabilities.


Microsoft is pushing customers towards its new Edge browser.


The FTSE 100 opening higher. I suppose to be fair we should point


out that wipes millions back on to out that wipes millions back on to


the value of shares since we talk about how much is wiped off when the


markets fall. I want to show you this story. Dick's sporting retailer


in the United States. Our team have been on the phone to


Sports Direct to find out if this means a push into the United States.


They have not denied or confirmed those plans, but nonetheless, an


interesting move for the UK retailer. That has been


controversial in the UK over the us of its zero-hours contracts, it has


some plans on the United States. Chinese exports have


defied expectations in December - rising


by 2.3% from a year ago. Forecasts were predicting


a sharp fall in exports, but a weakening currency may have


boosted the sector.Steve Evans I wouldn't make too much of the


rise, it depends how you denominate the figures in dollars or yuan.


People were expecting it to be worse. Performance is better than


expected in South Korea and Japan, they maybe wondering whether the


devaluation of the yuan will be at their expense. The fundamentals of


the Chinese situation remain the same. Growth is slower than it been


in two-and-a-half decades. The economy is unbalanced. One month's


figures indicate it might not be as bad as people initially expected.


Steve, thank you. Steve saying let's not make too much


of the figures and he is right in the inn that sense. It could be a


blip in the month of December. However, the markets celebrated the


fact. It did a lot to boost trade in Japan, in Hong Kong, and elsewhere


across Asia. Of course, that's the Dow. The night before, in the US,


let's look at Europe now. The price of oil going higher today is a big


factor for the FTSE 100. A lot of commodities and mining stocks and


oil majors listed on this market in London. It is up by 0.7%, in Europe,


we are seeing a stronger day. We'll talk you through the reasons why


shortly, but first, let's look ahead to what's happening on Wall Street.


They will have their eyes on the beige book and the auto conference


continues in Detroit and it is general motors turn to give their


predictions for the year ahead. James Quinn joined us. James, nice


to see you. Oil back up. We have been talking a lot about it this


week, $31 for Brent and light crude at under $31, it is interesting


yesterday, a stark warning from RBS, sell everything was the headline,


wasn't it? They think oil could get down to $16 a barrel. The banks


economists and strategists are having a game of who can go lower?


Standard Chartered winning that game. RBS, the chief economist, Sir


Andrew Roberts saying sell everything. A rebound today, but at


$30 in the US last night, oil touching below $30 just $29, the top


end of $29, that's a 14-year low. A rebound today in the scheme of


things, it doesn't really matter. Does this rewrite the rules? We were


sat here, weren't we, talking about oil can never get to ?50, it can


never get to $40, it can never get to $30 and we are seeing it fall


further and further. We talk about the new normal, but this really is


it? The impacts are being felt widely. BP announcing yesterday


4,000 production jobs to go. The Scottish economy has figures out


later and the impact there and what would the Scottish economy have


looked like if Scotland had more independence. Looking at the


commentary today, Asian markets bouncing off a three year low, $5


trillion knocked off share values since the beginning of the year.


Perhaps it was over done and we are due for a dead cat bounce? The FTSE


was up higher earlier and it is up under a percent. A dead cat bounce


yesterday. Can you explain what that is? A dead cat bounce is where we


have had a sharp fall and the markets correct themselves and


buyers come in at cheap prices and push those higher, but overall, and


China close to last summer's low. James, thank you very much. We're


going to talk about Lego later. Stay with us for that. James is going to


explain why Lego is in the headlines today. James for now, thank you.


In my spare time, all I have been doing is building Lego. It is what


happens when you have three boys. She heads up one of the biggest law


firms in the US and was named the most prolific BlackBerry user of the


year and she has got four kids. We will hear from her later in the


show about you you do indeed, have it all. You are with Business Live


from BBC News. We have been talking supermarkets


all week. We were discussing Morrisons yesterday, this time it is


the turn of Sainsbury's. It reported a 0.4% fall in like for like sales


during the crucial Christmas period. Simon Jack is in the business


newsroom with the details. Simon, it is interesting, it is the next


retailer to give us the update, all eyes on how the supermarkets did.


How is it going down in the city? Well, I mean, it is not bad. 0.4%


doesn't sound that great, it doesn't sound as great as Morrisons


delivered, but it wasn't a like for like comparison because Morrisons


was over the Christmas trading period and this is for the third


quarter. The City likes it a bit, it is up 0.3% today, but it had its big


move yesterday when Morrisons surprised everyone by posting an


increase over the Chris pass period. A lot of people taking this as the


moment when the big four fight back against the oldies and Lidls, the


discounters of this world. We saw big moves in the supermarket sector


yesterday. So far today, they like it and they think that basically


some of the established players are holding their own against the new


entrants. Bring us the latest on Sainsbury's Argos?


They have made a bid for Argos. A lot of people scratched their heads


and said, "Is that a good brand match?" The Chief Executive has been


explaining his rational today. I was listening into the call. If you want


to look for yourself, if you look at my Twitter feed, you will see I


posted the slides for the rational of that of the most City folk I


spoke to don't like the deal. Most retail people can see the sense in


it. They have got until 2nd February to make an improved rules or the


take-over rules say they have to go away for at least six months.


Argos had a new plan to order online and it would be delivered the same


day. Sainsbury's also like this delivery


network. The infrastructure already in place as a result of that plan to


order and get your delivery on the same day. Simon touched on it but a


lot more detail on the website. All the details that and we have


listened into that call from the Chief Executive answering questions


about training -- trading over that period.


compare the results of Sainsbury's compare the results of Sainsbury's


and Morrisons. We had Marks Spencer awhile ago so have a look


for your analysis. President Obama says the US


is the strongest and most durable But he calls for changes to reduce


the growing income gap during his State


of the Union address. Bankers were in the spotlight last


year - for all the wrong reasons. Rate rigging, market manipulation


and of course the ongoing fallout The Serious Fraud Office in the UK


has brought proceedings against ten people accused of rigging rates,


and a former Barclays and Deutsche Bank worker charged


with conspiracy to defraud. And the outcome of those trials


will be watched closely. She was promoted to the head of one


of the biggest law firms in the US, Morgan Lewis, in October 2014


Focusing particularly on the financial services


and technology industries, she has led bank-related


investigations and litigation cases. Yet she's one of only nine senior


executives at the top 100 Alice Baxter went to meet her


and started by asking her how she juggles being the boss


with her family life and four When you think things are getting


better for women in law, but it has gone at a slower pace than expected


but it is a great profession for women and a great time to be a


woman. When you started in the 1980s, it was not very typical. Law


has a very high proportion of women, more women than men start out their


careers than men but a substantially smaller proportion go on to make a


career out of it. For me, it was an advantage. When I came into the


profession, there were not a lot of women and I did not look like


anybody else. I decided not to try to be like anybody else. When I came


into the profession, people said, dressed in a suit, do not have


pictures of your children in your office. That just was not going to


work for me. You have to be authentic. To clarify, what you like


being called? I once read you did not like the term chairman but did


not want to be called chairwoman, so check? When I came into the


profession, there were a lot of well-meaning, well educated people


who called me honey, or dear. I could have got offended but I did


not. That was not important. Words are very important but you always


have to apply common sense. Turning to one of your areas of specialism,


this is a sensitive area for you because you do represent a lot of


banks. Do the US and UK authorities deal well with the abuse in


financial markets, that has dominated headlines on both sides of


the Atlantic? Should more bankers be facing custodial sentences? This is


an area where emotions can run high. It is very easy for people to jump


to a popular view. That someone should be responsible for everything


that has happened. Every client, every bank wants to do the right


thing. And so you are going to have problems where people stumble and


make mistakes. The real question is whether or not we are looking at


that clearly as opposed to emotionally. There has been a lot of


attention on the Department of Justice, should it be doing more?


The reach of the office essentially make sure that US citizens and US


companies are not engaged in corruption. That is a goal we all


should be happy about. government takes that into account


when there is a stumble and a trip, that is the government to arrange a


team between things happening and things that are more nefarious and


that is really important. In terms of trends, is US law being exported


to Europe at the moment? I think some aspects of US law, class action


and litigation, some things have becoming -- incoming mortar the UK.


But it is less US law than the US firms. If you look at the people


populating firms, it UK lawyers. Interesting conversation between


Jami Wintz McKeon and Alice. These are some of the tweets about


women in business and whether you can have everything and whether it


has affected your career prospects or your career.


This says, I teach English, one of the least affected by gender


discrimination, men and women enjoy equal opportunities.


And this says, has my gender affected my career? No. Does gender


have anything to do with the work in the global media world?


I doubt it. Send us your thoughts. This debate will go on and on with


strong opinions on both sides. James is back. Your thoughts on the usual


gender? I think in business, clearly, there are six women at the


top of the books he 100. What are people coming through the ranks and


trying to do more, it is not so much women on boards but coming through


the middle tiers -- FTSE. A lot of boards say they are nonexecutive


directors but you do not have day-to-day power in the running of


the firm. We need more women who can change something.


I think there is a lot of momentum on this issue in terms of seeing


more women climbing up the ladder within companies and heading up


companies, more so now than ever. That is a good thing. Let's talk


about the papers. This is a male dominated club! Opec. Calls for a


crisis meeting, according to The Times, over the warning that oil


could hit $10 a barrel. Why is Opec seemingly so slow to act? The


Nigerian energy Minister has called for an emergency meeting by March to


discuss the oil supply and demand crisis. Opec is seen by many as a


cartel. Opec is in the oil producing nations interests to keep the oil


price as high as possible and warnings of oil as low as $10 a


barrel, that is not in their interest. Why they slow? They are a


club and each country operates in its own interests. Not knowing


greased beady in decision-making. Many say they are a club not in a


place of agreement, you have Angola, Nigeria and Venezuela who all


desperately want production cuts and Saudi Arabia who many would argue


make the calls in this club. Saint, no way. We are not budging on this.


That is right, and this is a time of $31 a barrel and Saudi Arabia


considering listing at $10 trillion a national oil engineer company. It


needs to raise money. It has the guts to do that but some Latin


American countries do not. Something entirely different. Disney is


opening its first theme park in mainland China. In June. We knew


this was happening but it is late and has been delayed and so many


cultural issues to overcome. It is one of America's biggest exports,


the Disney Dreamland. In China, it is different. At this rate, the


Mickey Mouse of China is something Chinese leaders will not be keen on


-- that is right. There is already a Disneyland in Hong Kong and this


part has been delayed and some nuances are different to Paris and


Florida and California. If I remember rightly, there is going to


be a Legoland in mainland China. In Shanghai, yes. Lego incher but with


regulators in Germany, which? -- in trouble. German regulators have


found in the case of one department store looking to discount the price


of Lego, Lego officials told the department store they were not able


to do that so they have been fined as a result. I have wondered, as a


purchaser of Lego especially at this time of year, you never see


discounts. It is never in the sales, I wish it was! It is not cheap. It


has been in demand is thanks to The Lego Movie and Star Wars


derivations. Speaking of buying Lego, the story this morning says,


the controversial Chinese artist I weigh weight was banned from buying


Lego in bulk because they did not want to get involved with a


political statement, but they have reversed that ban -- Wei Wei. I have


not said they will allow it to happen, they say they will not take


any interest when people buy in bulk. They are trying to tread a


middle ground. Wei Wei has tweeted this morning, freedom of expression.


A bulk brick order. If you need 100,000 for the children, no


questions! I might get in touch with Wei Wei to


get his bricks when he has finished. Thank you, James. That is all, good


why! -- goodbye. Good morning, many of us have


started the day with Frost. Chilly


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