:00:07. > :00:09.This is Business Live from BBC News with Sally Bundock
:00:10. > :00:18.President Obama gets ready for crucial talks on his historic
:00:19. > :00:35.Live from London, that's our top story on Monday, 21st March.
:00:36. > :00:37.Mr Obama's visit is an important step in the normalisation
:00:38. > :00:44.But how far can the two sides go in deepening trade ties.
:00:45. > :00:47.Also in the programme: the Prime Minister of Cambodia has
:00:48. > :00:53.And European stocks open lower as the oil price drags commodity
:00:54. > :01:03.And we'll be meeting the man who says he's come up
:01:04. > :01:05.with a revolutionary way of mapping our world.
:01:06. > :01:07.Ian Hetherington was a pioneer of the gaming industry -
:01:08. > :01:10.now he's firmly focused on 3D mapping technology but is this
:01:11. > :01:20.And today we want to know how do you go about boosting your
:01:21. > :01:23.What do you think about buying "likes" or "followers".
:01:24. > :01:45.President Obama has arrived in Havana -
:01:46. > :01:47.the first US presidential visit to Cuba in 88 years.
:01:48. > :01:51.Mr Obama will meet President Raul Castro later today and then speak
:01:52. > :01:56.at an event focused on entrepreneurship.
:01:57. > :01:58.US-Cuba ties were frozen in 1960, when the US broke off diplomatic
:01:59. > :02:01.relations and imposed a trade embargo after Cuba's revolution
:02:02. > :02:14.It's estimated the trade embargo has cost the Cuban economy 1.1
:02:15. > :02:18.Obama normalised diplomatic and economic ties in December 2014
:02:19. > :02:21.but the embargo cannot be fully lifted without approval
:02:22. > :02:26.Yesterday, the US hotel company Starwood became the first American
:02:27. > :02:31.firm to agree a deal with the Cuban authorities since the revolution
:02:32. > :02:36.of 1959, agreeing to spend millions renovating hotels in Havana.
:02:37. > :02:39.Many in Cuba now hope the country is on the verge of a new economic
:02:40. > :02:42.era and it's estimated that between 20 and 30 percent
:02:43. > :02:47.of the workforce is now privately employed in the communist state.
:02:48. > :02:53.As part of the Obama administration's attempt
:02:54. > :02:55.to normalise trade relations with Cuba, regular airline service
:02:56. > :03:07.between the two countries is set to be introduced.
:03:08. > :03:09.Speaking to Jon Sopel, JetBlue's CEO said the competition
:03:10. > :03:14.among with his rivals for the new routes was unprecedented.
:03:15. > :03:20.At the moment you have the odd charter flight going in there. When
:03:21. > :03:21.you think about the potential for Cuba and
:03:22. > :03:32.become the largest market in the Caribbean. That is all very well but
:03:33. > :03:36.is there the infrastructure to run it? Infrastructure will have to be
:03:37. > :03:43.expanded. If we think about hotels, the Hotels in Cuba are pretty good.
:03:44. > :03:49.There will have to be some new hotels being built.
:03:50. > :03:54.Economist Cornelia Meyer joins us now.
:03:55. > :04:00.A massive day in the sense that a US president is in Cuba now,
:04:01. > :04:09.doing speeches and touring around. It has not happened in 88 years. It
:04:10. > :04:13.is quite unprecedented. What is really important here is the
:04:14. > :04:14.business story. Not unlike Iran, there is a
:04:15. > :04:28.Given that there is a lot of tourism interest, the Starwood deal is
:04:29. > :04:30.important. The Cubans drive around in these very old American cars will
:04:31. > :04:38.stop think about the smaller cars which could
:04:39. > :04:43.go in, also the Volkswagens of this world. Once the US lifts sanctions,
:04:44. > :04:47.everyone else follows. Think about what it means from the financial
:04:48. > :04:52.industry. They have been cut off from a real payment system. Coming
:04:53. > :04:57.back onto the visa system, onto the credit card systems, is very
:04:58. > :04:59.important. You see Silicon Valley firms going in there, already saying
:05:00. > :05:09.let us help you with the to set up accounts in the US. Very
:05:10. > :05:09.similar to Iran, the embargo is not fully lifted, there
:05:10. > :05:13.is a long way to go, US Congress has two
:05:14. > :05:19.pass the whole process and that in itself is not an easy road, is it,
:05:20. > :05:26.given the fact that we have an election year, it is an
:05:27. > :05:30.electioneering process right now, when will that take place? To be
:05:31. > :05:37.realistic, it may be after November. Right now, the Democrats do not have
:05:38. > :05:41.a majority in either house, so it will not be that easy.
:05:42. > :05:52.A lot of the Republicans are financed by people with strong ties
:05:53. > :05:53.to Florida which has a lot of right-wing Cuban exile is. Which
:05:54. > :05:56.side they will come out on So we might see a situation where
:05:57. > :06:07.the US Congress might decide on this after we have the presidential
:06:08. > :06:11.elections. Whoever is the next US president might not want to do this
:06:12. > :06:16.because they all have different stances on Cuba, but even if this
:06:17. > :06:22.does get past, if we have a president who is pro-Cuba, even if
:06:23. > :06:26.this does get passed by Congress, do you think the Cubans themselves are
:06:27. > :06:27.ready to seize this opportunity? It is clear the outside world is
:06:28. > :06:33.looking to invest, but are they going to take
:06:34. > :06:39.advantage? They will absolutely take advantage. A lot of them are
:06:40. > :06:45.privately employed. The GDP is quite stagnant. It is $68 billion. You
:06:46. > :06:47.have a good population pyramid, where the majority of the
:06:48. > :06:51.people are somewhere between 15 and 65.
:06:52. > :06:55.So you do have a lot of people who need to earn a living and would
:06:56. > :07:06.like to earn a better living and economic needs always will help
:07:07. > :07:11.tendencies like more business. Cornelia, it has been great to have
:07:12. > :07:13.you on the show. Thank you for your input. This is a story we are right
:07:14. > :07:18.across on the BBC. China's Central Bank governor
:07:19. > :07:26.Zhou Xiaochuan says the amount of money being taken out
:07:27. > :07:29.of the country is falling. Capital outflow has been a major
:07:30. > :07:31.concern as China struggles to try and reassure investors
:07:32. > :07:33.that it still has grip Fifa has announced China's Wanda
:07:34. > :07:37.Group as the organisation's The move comes a day after Fifa
:07:38. > :07:40.revealed a reported loss of $122 million for 2015 -
:07:41. > :07:43.its first negative result Lots of stories on the business live
:07:44. > :08:11.page. Apple is expected to launch a smaller phone today. This was a way
:08:12. > :08:15.of Apple coming at the other end of the smartphone market. It is one of
:08:16. > :08:20.the most expensive and that is the issue. When you have got one, you do
:08:21. > :08:24.not want to upgrade that soon when it costs that much money. You get
:08:25. > :08:28.into a pattern where you are you just get the upgrade and then they
:08:29. > :08:30.bring another one out. It is thought the smaller phone will have the same
:08:31. > :08:47.sort of features as the iPhone six. Oil
:08:48. > :08:49.prices today, we will talk about oil later but it is still in the news as
:08:50. > :08:53.ever. Now it was a shocker
:08:54. > :08:55.of a start to the week Yes prices plunged after some
:08:56. > :08:59.pretty extraordinary news Ali Moore is in our Asia
:09:00. > :09:08.Business Hub in Singapore. What is going on? It has been a very
:09:09. > :09:25.dramatic day in Australian politics. I have to say this whole political
:09:26. > :09:28.drama has got a long way to go. The problem for the Australian
:09:29. > :09:32.Conservative government is it cannot get a lot of what it sees as key
:09:33. > :09:34.reforms through the upper house of parliament. A whole series of minor
:09:35. > :09:40.parties and the balance of power. The Prime Minister has decided to
:09:41. > :09:46.make particular set of Labour reforms the litmus test. He said he
:09:47. > :09:50.will dissolve both Houses of Parliament and he will
:09:51. > :09:56.call an early election. On the one side there is the negative of all of
:09:57. > :09:57.this uncertainty that will happen between now and
:09:58. > :10:04.April, and if indeed the legislation is not back, then the legislation in
:10:05. > :10:06.July. On the positive, if you take a long-term view, it
:10:07. > :10:17.Chinese markets started the week on a positive note,
:10:18. > :10:19.despite warnings over the weekend about the high level of corporate
:10:20. > :10:23.lending and the risks it poses to the economy.
:10:24. > :10:26.Japan's equities and bond markets were shut for the vernal
:10:27. > :10:37.This is how the trading day is opening up across Europe.
:10:38. > :10:39.Michelle Fleury has the details about what's ahead
:10:40. > :10:55.US investors go into a shortened trading week this Monday, with one
:10:56. > :10:56.central prop of the American economy firmly in
:10:57. > :10:59.sight, housing. The National Association of Realtors
:11:00. > :11:08.count of existing home sales, which means all the homes sales accept
:11:09. > :11:10.newly built properties. It is perhaps the broadest gauge of the
:11:11. > :11:16.health of the housing market and last week's number surprised
:11:17. > :11:20.everyone by how strong it was. Maybe the US recovery is built on strong
:11:21. > :11:24.foundations after all. Everyone is looking for this month to be another
:11:25. > :11:29.strong one, with forecasts set to rise again. If they disappoint, the
:11:30. > :11:39.markets could react badly. Joining us is Trevor Greetham, head
:11:40. > :11:51.of multi-asset A start of a new trading week, oil
:11:52. > :11:56.prices down, China in the news for good and bad reasons. Your thoughts?
:11:57. > :12:00.There has been some economic data with the manufacturing data
:12:01. > :12:03.tomorrow. I think everyone is trying to digests the central bank meetings
:12:04. > :12:06.we have had this month, the extra money printing we have had from the
:12:07. > :12:12.European Central Bank and also the fact that America's Federal Reserve
:12:13. > :12:16.seems to have gone soft on interest rate rises. What we are trying to
:12:17. > :12:20.get our heads around is whether we will see this roller-coaster we have
:12:21. > :12:24.seen over the last year, where every time the world economy feels strong
:12:25. > :12:29.enough, and the markets are upbeat enough, China says we will have some
:12:30. > :12:33.of that growth. They devalue that currency and sent shares into a
:12:34. > :12:37.tailspin. We have seen that twice now. It happened last summer and the
:12:38. > :12:41.first trading week of this year. What will determine whether we can
:12:42. > :12:45.break out of this repeating pattern or not is whether China can show
:12:46. > :12:50.some stronger growth and whether manufacturing can pick up. There are
:12:51. > :13:01.some positive sides and that is what we are watching.
:13:02. > :13:05.We had the resignation of the former party leader Iain Duncan Smith and
:13:06. > :13:07.that has reignited some of the debate here in Britain over
:13:08. > :13:09.austerity and the pace of it. We were talking about Jude 20 nations
:13:10. > :13:10.and the fact that the global economy is slowing down and perhaps
:13:11. > :13:17.it is time to loosen the austerity reigns
:13:18. > :13:20.a little bit and let the economy breeds, not so Britain. Why are we
:13:21. > :13:26.seeing this disconnect? Shanghai and people said we would
:13:27. > :13:28.all do our bit to try and boost the strength of the world
:13:29. > :13:33.economy through monetary policy and fiscal economy, and then George
:13:34. > :13:37.Osborne came back and said there were storm clouds gathering and we
:13:38. > :13:41.had to cut spending which is the opposite of what the joint statement
:13:42. > :13:47.was saying. It does feel that there is something going on here. It is
:13:48. > :13:51.called a referendum, isn't it? It is may be partly the referendum but
:13:52. > :14:02.also a desire to have a Budget surplus in
:14:03. > :14:06.2020 in this country. It means every time growth is weaker than you
:14:07. > :14:08.expect, tax revenues drop and you think you should cut spending. But
:14:09. > :14:10.you have to be concerned whether this will weaken the economy. Thank
:14:11. > :14:12.you. Still to come: We'll be meeting
:14:13. > :14:15.the man who says he's come up with a revolutionary
:14:16. > :14:16.new mapping system - You're with Business
:14:17. > :14:19.Live from BBC News. The Confederation of
:14:20. > :14:21.British Industry has published a report warning about the economic
:14:22. > :14:24.risks from Britain leaving the EU. Anti-EU campaigners have
:14:25. > :14:27.dismissed the report. Ben Thompson is our Salford studio
:14:28. > :14:52.and has been following the story. Controversial as ever, tell us more.
:14:53. > :14:58.The CBI has put a figure on leaving the EU, it says the cost of ?1
:14:59. > :15:03.billion and a million jobs would be lost. They have been criticised
:15:04. > :15:08.already. I have been speaking to Vote Leave. They say these are the
:15:09. > :15:12.worst case scenarios and based on flawed assumptions. First up this
:15:13. > :15:16.morning, I spoke to the CBI boss and I put it to her that the report says
:15:17. > :15:21.the economy would still keep on growing, even if the UK does vote to
:15:22. > :15:29.leave the EU. This is what she told me.
:15:30. > :15:35.The question is whether we would sacrifice jobs for leaving. The
:15:36. > :15:40.comparison is what we would have had otherwise and that is ?100 billion
:15:41. > :15:45.lower according to this model in 2020. Unemployment rising from 5% to
:15:46. > :15:47.between seven and 8%. These are the costs of the economy compared with
:15:48. > :15:56.staying in. EeGeo Vote Leave point out that the
:15:57. > :16:02.CBI was vocal in encouraging the UK to join the euro and we know how
:16:03. > :16:05.that turned out. They say it is based on flawed assumptions that
:16:06. > :16:10.they are the worst case scenarios and reality would be better. This is
:16:11. > :16:13.what Vote Leave told me earlier. If you read the report it states that
:16:14. > :16:18.the economy will continue to grow even on the worst case assumption, I
:16:19. > :16:22.don't accept their assumptions. Even at the worst case assumption the
:16:23. > :16:25.economy will still grow and in the medium-term, we are going to create
:16:26. > :16:29.according to their report three million more jobs. So not only are
:16:30. > :16:33.they saying that on the worst scenario, it the economy is going to
:16:34. > :16:37.grow, we are going to create more jobs. I don't understand where they
:16:38. > :16:41.are coming from. What I put to both of them that all of this is an
:16:42. > :16:44.educated guess, it is unprecedented that a country left the European
:16:45. > :16:48.Union and so for all the modelling and all the predictions and all the
:16:49. > :16:58.forecasts, this at best, is an educated guess.
:16:59. > :17:02.Our top story: President Obama is to hold talks with his Cuban
:17:03. > :17:05.counterpart on his historic visit to Havana.
:17:06. > :17:11.Trade is expected to be a major topic of discussion.
:17:12. > :17:17.More on the website. The first time this happened in 88 years.
:17:18. > :17:20.Now let's get the Inside Track on the world of location mapping.
:17:21. > :17:23.Our next guest thinks he's managed to find a revolutionary way
:17:24. > :17:28.of integrating 3D mapping into smartphone apps.
:17:29. > :17:31.EeGeo offers a unique mapping system which aims to give an immersive view
:17:32. > :17:34.The platform covers 200 million square kilometres and operates
:17:35. > :17:36.using a sliding scale monthly licence fee depending
:17:37. > :17:42.The CEO of eeGeo, Ian Hetherington, joins
:17:43. > :17:53.Thank you for coming in. Good to see. We have tried to explain it!
:17:54. > :17:59.Why don't you talk us through how it works. We have built a 3D map of the
:18:00. > :18:03.world outside and inside and users can transition between the outside
:18:04. > :18:08.view of the world similar to your dabbing drop here into buildings and
:18:09. > :18:14.into rooms, offices, and locate themselves anywhere in the world.
:18:15. > :18:20.Why would I need a 3D map? If I have got Google Maps and I'm confident
:18:21. > :18:25.with it... And it is free. Why do I need your maps? It is about
:18:26. > :18:29.visualisation and orientation, how many times have you got lost in a
:18:30. > :18:33.shopping mall? How many times have you wondered where you are in an
:18:34. > :18:37.airport or museum or out on the street? How many times do you I see
:18:38. > :18:41.people come out of the Tube station with a mobile phone wondering where
:18:42. > :18:45.they are and which way they are facing? Those are the problems we
:18:46. > :18:50.solve. Surely the future for this company is not going to be about
:18:51. > :18:55.mapping the outdoors, but mapping indoors, places like museums, if
:18:56. > :18:58.you're mapping banks and shops, offices for example, aren't you
:18:59. > :19:00.going to run into problems with Government intelligence agencies
:19:01. > :19:04.with police forces around the world because you are effectively giving
:19:05. > :19:10.criminals, you know, an online recognisy. They don't even need to
:19:11. > :19:14.go in to find the best ways to get in or out of a building would be? I
:19:15. > :19:20.don't think we are providing any information that's not in the public
:19:21. > :19:23.domain anyway. Well, it would be. The way we combat that problem
:19:24. > :19:28.because we have customers who have concerns about these sorts of
:19:29. > :19:33.things. Basically, it is like being on your network inside the BBC. So
:19:34. > :19:36.the security is at that level and not at our level. The security would
:19:37. > :19:42.be with the buildings themselves? Absolutely. We have customers with
:19:43. > :19:48.sensitive information who, but see the value in our proposition. So if
:19:49. > :19:52.you look at customers like NTT and Sisco, they are providing solutions
:19:53. > :19:56.to some very, very advanced businesses and we have that problem.
:19:57. > :20:01.Also you have got customers like Disney for example, Walt Disney and
:20:02. > :20:05.those organisations. Your customers really are businesses, aren't they?
:20:06. > :20:11.Yes. This is a business to business idea? It is at the moment. We are
:20:12. > :20:16.relying on piggy backing their business proposition, it means
:20:17. > :20:22.something to their consumers. But later in the year we will be going
:20:23. > :20:25.to the consumers directly. You have to accumulate an enormous amount of
:20:26. > :20:28.data which you are doing and you have done various countries in the
:20:29. > :20:32.world, but in terms of the time it takes and the expense, are you, you
:20:33. > :20:36.are a private company, are you actually covering your costs at this
:20:37. > :20:42.point, where are you at? So, you look at a solution like Google w I
:20:43. > :20:45.respect, but they are spending billions of dollars a year. We are a
:20:46. > :20:50.company of 25 people. Highly talented people, so we have to solve
:20:51. > :20:54.that problem in a different wail. So we take data from many, many sources
:20:55. > :21:02.and it doesn't matter to us what form it comes in, our technology
:21:03. > :21:08.turns that into this streamable, straight... What is stopping Google
:21:09. > :21:12.click of a switch? You are out of click of a switch? You are out of
:21:13. > :21:17.business, aren't you? Well, I like to think not because if you look at
:21:18. > :21:22.a company like NTT they chose us and they chose us for a good reason. We
:21:23. > :21:24.have got the validation from the commerce sector and we have got
:21:25. > :21:29.validation from consumers. They just love it. All right, we will watch
:21:30. > :21:31.this space. Thank you for coming and we shall keep an eye on how you
:21:32. > :21:34.progress. When is a like on Facebook a real
:21:35. > :21:38.like and when has it been bought? That's a question being asked
:21:39. > :21:45.on social media in Asia this week with the Prime Minister of Cambodia,
:21:46. > :21:48.Hun Sen, forced to deny he has That's because the leader
:21:49. > :21:51.of the relatively small Asian nation That's in a country with an internet
:21:52. > :21:58.penetration rate of just 9%. That compares to
:21:59. > :22:01.the UK, for example, where Prime Minister David Cameron's
:22:02. > :22:04.Facebook page has a mere one million likes, even though the UK has
:22:05. > :22:06.a hefty internet Thousands of likes can be purchased
:22:07. > :22:11.for just a few dollars and it's becoming a growing issue
:22:12. > :22:28.across social media platforms. Trevor is back. This is a story we
:22:29. > :22:32.mentioned at the start of the programme, what would you do to
:22:33. > :22:35.boost your presence on social media? Trevor, is it something that keeps
:22:36. > :22:40.you a wake at night? Not really, no. I'm someone who
:22:41. > :22:44.doesn't know how to use it. It is phenomenal the thought that people
:22:45. > :22:48.can buy millions of likes when you think about the fact that
:22:49. > :22:52.advertising revenue follows, popular artists, popular brands. The three
:22:53. > :22:58.million was a problem there, wasn't it? Tipped it over the edge. Let's
:22:59. > :23:06.look at the other stories. Victoria is rejoining us on the set. Let's
:23:07. > :23:11.start with Dyson, Sir James Dyson investing ?1 billion into making
:23:12. > :23:16.batteries better. Why is he going to achieve this when with elon Mus k
:23:17. > :23:22.ploughed millions of dollars on this? He is the man who brought you
:23:23. > :23:29.vacuum cleaners with the smiley face on the side. Bagless vacuum
:23:30. > :23:34.cleaners. I have a three-year-old son and I was fixing one of his toy
:23:35. > :23:38.trains and I was thinking when I was three in 197 #1rks the batteries
:23:39. > :23:43.were identical, in smartphones you have got dense energy storage, but
:23:44. > :23:47.batteries haven't come on and if you can make some kind of improvements
:23:48. > :23:51.in this direction, then it will be, it will mean much longer distances
:23:52. > :23:55.for electric cars and it will mean microgeneration at home makes more
:23:56. > :23:59.sense because part of the problem is putting it back across electric
:24:00. > :24:03.wires and losing the energy. It is about the size and the weight, isn't
:24:04. > :24:07.it? If they can be small and light and really powerful, you are on to a
:24:08. > :24:13.real winner, aren't you? If he gets this right, he will hoover up!
:24:14. > :24:18.Very good! Hoover are a separate company and it
:24:19. > :24:25.is trademarked as well. This is something we were alluding
:24:26. > :24:29.to in the market, the people's bank of China governor warning the
:24:30. > :24:38.country's corporate debt is too high. Corporate debt has risen to
:24:39. > :24:41.230%. Why do these things matter and which should we be more concerned,
:24:42. > :24:45.the level of corporate debt or level of total? Well, I think the
:24:46. > :24:51.corporate debt is the biggest concern at the moment but the things
:24:52. > :24:58.that China can do about that, they can basically force banks to swap
:24:59. > :25:02.bad loans and bad debt into equity, banks forced to raise more equity,
:25:03. > :25:05.that would take a lot of the debt levels down and the Government could
:25:06. > :25:09.take on more debt as well. The reason the markets haven't really
:25:10. > :25:15.reacted, this has been a gradually growing problem and at the margin,
:25:16. > :25:18.the news out of China is better, the Trade Minister said the March trade
:25:19. > :25:23.numbers would be better, house prices are starting to go up. Also
:25:24. > :25:29.also, household debt is very, very low in China. They save more. They
:25:30. > :25:32.are more, I wouldn't say savvy is necessarily the word, but more
:25:33. > :25:37.cautious about their money. A form of savings rather than borrowing,
:25:38. > :25:42.you don't borrow to do that. Trevor, thank you for joining us today.
:25:43. > :25:47.There will be more business news throughout the day on the BBC Live
:25:48. > :25:48.webpage and on World Business Report.
:25:49. > :26:14.Well, the weekend was pretty quiet at least on the weather front and as
:26:15. > :26:18.far as president weather goes for the next few days, there is really
:26:19. > :26:24.not much change, lots of dry weather, a bit of sunshine, clouds
:26:25. > :26:25.too. Towards the end of the week, the weather fronts we are seeing