21/03/2016 BBC Business Live


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This is Business Live from BBC News with Sally Bundock


President Obama gets ready for crucial talks on his historic


Live from London, that's our top story on Monday, 21st March.


Mr Obama's visit is an important step in the normalisation


But how far can the two sides go in deepening trade ties.


Also in the programme: the Prime Minister of Cambodia has


And European stocks open lower as the oil price drags commodity


And we'll be meeting the man who says he's come up


with a revolutionary way of mapping our world.


Ian Hetherington was a pioneer of the gaming industry -


now he's firmly focused on 3D mapping technology but is this


And today we want to know how do you go about boosting your


What do you think about buying "likes" or "followers".


President Obama has arrived in Havana -


the first US presidential visit to Cuba in 88 years.


Mr Obama will meet President Raul Castro later today and then speak


at an event focused on entrepreneurship.


US-Cuba ties were frozen in 1960, when the US broke off diplomatic


relations and imposed a trade embargo after Cuba's revolution


It's estimated the trade embargo has cost the Cuban economy 1.1


Obama normalised diplomatic and economic ties in December 2014


but the embargo cannot be fully lifted without approval


Yesterday, the US hotel company Starwood became the first American


firm to agree a deal with the Cuban authorities since the revolution


of 1959, agreeing to spend millions renovating hotels in Havana.


Many in Cuba now hope the country is on the verge of a new economic


era and it's estimated that between 20 and 30 percent


of the workforce is now privately employed in the communist state.


As part of the Obama administration's attempt


to normalise trade relations with Cuba, regular airline service


between the two countries is set to be introduced.


Speaking to Jon Sopel, JetBlue's CEO said the competition


among with his rivals for the new routes was unprecedented.


At the moment you have the odd charter flight going in there. When


you think about the potential for Cuba and


become the largest market in the Caribbean. That is all very well but


is there the infrastructure to run it? Infrastructure will have to be


expanded. If we think about hotels, the Hotels in Cuba are pretty good.


There will have to be some new hotels being built.


Economist Cornelia Meyer joins us now.


A massive day in the sense that a US president is in Cuba now,


doing speeches and touring around. It has not happened in 88 years. It


is quite unprecedented. What is really important here is the


business story. Not unlike Iran, there is a


Given that there is a lot of tourism interest, the Starwood deal is


important. The Cubans drive around in these very old American cars will


stop think about the smaller cars which could


go in, also the Volkswagens of this world. Once the US lifts sanctions,


everyone else follows. Think about what it means from the financial


industry. They have been cut off from a real payment system. Coming


back onto the visa system, onto the credit card systems, is very


important. You see Silicon Valley firms going in there, already saying


let us help you with the to set up accounts in the US. Very


similar to Iran, the embargo is not fully lifted, there


is a long way to go, US Congress has two


pass the whole process and that in itself is not an easy road, is it,


given the fact that we have an election year, it is an


electioneering process right now, when will that take place? To be


realistic, it may be after November. Right now, the Democrats do not have


a majority in either house, so it will not be that easy.


A lot of the Republicans are financed by people with strong ties


to Florida which has a lot of right-wing Cuban exile is. Which


side they will come out on So we might see a situation where


the US Congress might decide on this after we have the presidential


elections. Whoever is the next US president might not want to do this


because they all have different stances on Cuba, but even if this


does get past, if we have a president who is pro-Cuba, even if


this does get passed by Congress, do you think the Cubans themselves are


ready to seize this opportunity? It is clear the outside world is


looking to invest, but are they going to take


advantage? They will absolutely take advantage. A lot of them are


privately employed. The GDP is quite stagnant. It is $68 billion. You


have a good population pyramid, where the majority of the


people are somewhere between 15 and 65.


So you do have a lot of people who need to earn a living and would


like to earn a better living and economic needs always will help


tendencies like more business. Cornelia, it has been great to have


you on the show. Thank you for your input. This is a story we are right


across on the BBC. China's Central Bank governor


Zhou Xiaochuan says the amount of money being taken out


of the country is falling. Capital outflow has been a major


concern as China struggles to try and reassure investors


that it still has grip Fifa has announced China's Wanda


Group as the organisation's The move comes a day after Fifa


revealed a reported loss of $122 million for 2015 -


its first negative result Lots of stories on the business live


page. Apple is expected to launch a smaller phone today. This was a way


of Apple coming at the other end of the smartphone market. It is one of


the most expensive and that is the issue. When you have got one, you do


not want to upgrade that soon when it costs that much money. You get


into a pattern where you are you just get the upgrade and then they


bring another one out. It is thought the smaller phone will have the same


sort of features as the iPhone six. Oil


prices today, we will talk about oil later but it is still in the news as


ever. Now it was a shocker


of a start to the week Yes prices plunged after some


pretty extraordinary news Ali Moore is in our Asia


Business Hub in Singapore. What is going on? It has been a very


dramatic day in Australian politics. I have to say this whole political


drama has got a long way to go. The problem for the Australian


Conservative government is it cannot get a lot of what it sees as key


reforms through the upper house of parliament. A whole series of minor


parties and the balance of power. The Prime Minister has decided to


make particular set of Labour reforms the litmus test. He said he


will dissolve both Houses of Parliament and he will


call an early election. On the one side there is the negative of all of


this uncertainty that will happen between now and


April, and if indeed the legislation is not back, then the legislation in


July. On the positive, if you take a long-term view, it


Chinese markets started the week on a positive note,


despite warnings over the weekend about the high level of corporate


lending and the risks it poses to the economy.


Japan's equities and bond markets were shut for the vernal


This is how the trading day is opening up across Europe.


Michelle Fleury has the details about what's ahead


US investors go into a shortened trading week this Monday, with one


central prop of the American economy firmly in


sight, housing. The National Association of Realtors


count of existing home sales, which means all the homes sales accept


newly built properties. It is perhaps the broadest gauge of the


health of the housing market and last week's number surprised


everyone by how strong it was. Maybe the US recovery is built on strong


foundations after all. Everyone is looking for this month to be another


strong one, with forecasts set to rise again. If they disappoint, the


markets could react badly. Joining us is Trevor Greetham, head


of multi-asset A start of a new trading week, oil


prices down, China in the news for good and bad reasons. Your thoughts?


There has been some economic data with the manufacturing data


tomorrow. I think everyone is trying to digests the central bank meetings


we have had this month, the extra money printing we have had from the


European Central Bank and also the fact that America's Federal Reserve


seems to have gone soft on interest rate rises. What we are trying to


get our heads around is whether we will see this roller-coaster we have


seen over the last year, where every time the world economy feels strong


enough, and the markets are upbeat enough, China says we will have some


of that growth. They devalue that currency and sent shares into a


tailspin. We have seen that twice now. It happened last summer and the


first trading week of this year. What will determine whether we can


break out of this repeating pattern or not is whether China can show


some stronger growth and whether manufacturing can pick up. There are


some positive sides and that is what we are watching.


We had the resignation of the former party leader Iain Duncan Smith and


that has reignited some of the debate here in Britain over


austerity and the pace of it. We were talking about Jude 20 nations


and the fact that the global economy is slowing down and perhaps


it is time to loosen the austerity reigns


a little bit and let the economy breeds, not so Britain. Why are we


seeing this disconnect? Shanghai and people said we would


all do our bit to try and boost the strength of the world


economy through monetary policy and fiscal economy, and then George


Osborne came back and said there were storm clouds gathering and we


had to cut spending which is the opposite of what the joint statement


was saying. It does feel that there is something going on here. It is


called a referendum, isn't it? It is may be partly the referendum but


also a desire to have a Budget surplus in


2020 in this country. It means every time growth is weaker than you


expect, tax revenues drop and you think you should cut spending. But


you have to be concerned whether this will weaken the economy. Thank


you. Still to come: We'll be meeting


the man who says he's come up with a revolutionary


new mapping system - You're with Business


Live from BBC News. The Confederation of


British Industry has published a report warning about the economic


risks from Britain leaving the EU. Anti-EU campaigners have


dismissed the report. Ben Thompson is our Salford studio


and has been following the story. Controversial as ever, tell us more.


The CBI has put a figure on leaving the EU, it says the cost of ?1


billion and a million jobs would be lost. They have been criticised


already. I have been speaking to Vote Leave. They say these are the


worst case scenarios and based on flawed assumptions. First up this


morning, I spoke to the CBI boss and I put it to her that the report says


the economy would still keep on growing, even if the UK does vote to


leave the EU. This is what she told me.


The question is whether we would sacrifice jobs for leaving. The


comparison is what we would have had otherwise and that is ?100 billion


lower according to this model in 2020. Unemployment rising from 5% to


between seven and 8%. These are the costs of the economy compared with


staying in. EeGeo Vote Leave point out that the


CBI was vocal in encouraging the UK to join the euro and we know how


that turned out. They say it is based on flawed assumptions that


they are the worst case scenarios and reality would be better. This is


what Vote Leave told me earlier. If you read the report it states that


the economy will continue to grow even on the worst case assumption, I


don't accept their assumptions. Even at the worst case assumption the


economy will still grow and in the medium-term, we are going to create


according to their report three million more jobs. So not only are


they saying that on the worst scenario, it the economy is going to


grow, we are going to create more jobs. I don't understand where they


are coming from. What I put to both of them that all of this is an


educated guess, it is unprecedented that a country left the European


Union and so for all the modelling and all the predictions and all the


forecasts, this at best, is an educated guess.


Our top story: President Obama is to hold talks with his Cuban


counterpart on his historic visit to Havana.


Trade is expected to be a major topic of discussion.


More on the website. The first time this happened in 88 years.


Now let's get the Inside Track on the world of location mapping.


Our next guest thinks he's managed to find a revolutionary way


of integrating 3D mapping into smartphone apps.


EeGeo offers a unique mapping system which aims to give an immersive view


The platform covers 200 million square kilometres and operates


using a sliding scale monthly licence fee depending


The CEO of eeGeo, Ian Hetherington, joins


Thank you for coming in. Good to see. We have tried to explain it!


Why don't you talk us through how it works. We have built a 3D map of the


world outside and inside and users can transition between the outside


view of the world similar to your dabbing drop here into buildings and


into rooms, offices, and locate themselves anywhere in the world.


Why would I need a 3D map? If I have got Google Maps and I'm confident


with it... And it is free. Why do I need your maps? It is about


visualisation and orientation, how many times have you got lost in a


shopping mall? How many times have you wondered where you are in an


airport or museum or out on the street? How many times do you I see


people come out of the Tube station with a mobile phone wondering where


they are and which way they are facing? Those are the problems we


solve. Surely the future for this company is not going to be about


mapping the outdoors, but mapping indoors, places like museums, if


you're mapping banks and shops, offices for example, aren't you


going to run into problems with Government intelligence agencies


with police forces around the world because you are effectively giving


criminals, you know, an online recognisy. They don't even need to


go in to find the best ways to get in or out of a building would be? I


don't think we are providing any information that's not in the public


domain anyway. Well, it would be. The way we combat that problem


because we have customers who have concerns about these sorts of


things. Basically, it is like being on your network inside the BBC. So


the security is at that level and not at our level. The security would


be with the buildings themselves? Absolutely. We have customers with


sensitive information who, but see the value in our proposition. So if


you look at customers like NTT and Sisco, they are providing solutions


to some very, very advanced businesses and we have that problem.


Also you have got customers like Disney for example, Walt Disney and


those organisations. Your customers really are businesses, aren't they?


Yes. This is a business to business idea? It is at the moment. We are


relying on piggy backing their business proposition, it means


something to their consumers. But later in the year we will be going


to the consumers directly. You have to accumulate an enormous amount of


data which you are doing and you have done various countries in the


world, but in terms of the time it takes and the expense, are you, you


are a private company, are you actually covering your costs at this


point, where are you at? So, you look at a solution like Google w I


respect, but they are spending billions of dollars a year. We are a


company of 25 people. Highly talented people, so we have to solve


that problem in a different wail. So we take data from many, many sources


and it doesn't matter to us what form it comes in, our technology


turns that into this streamable, straight... What is stopping Google


click of a switch? You are out of click of a switch? You are out of


business, aren't you? Well, I like to think not because if you look at


a company like NTT they chose us and they chose us for a good reason. We


have got the validation from the commerce sector and we have got


validation from consumers. They just love it. All right, we will watch


this space. Thank you for coming and we shall keep an eye on how you


progress. When is a like on Facebook a real


like and when has it been bought? That's a question being asked


on social media in Asia this week with the Prime Minister of Cambodia,


Hun Sen, forced to deny he has That's because the leader


of the relatively small Asian nation That's in a country with an internet


penetration rate of just 9%. That compares to


the UK, for example, where Prime Minister David Cameron's


Facebook page has a mere one million likes, even though the UK has


a hefty internet Thousands of likes can be purchased


for just a few dollars and it's becoming a growing issue


across social media platforms. Trevor is back. This is a story we


mentioned at the start of the programme, what would you do to


boost your presence on social media? Trevor, is it something that keeps


you a wake at night? Not really, no. I'm someone who


doesn't know how to use it. It is phenomenal the thought that people


can buy millions of likes when you think about the fact that


advertising revenue follows, popular artists, popular brands. The three


million was a problem there, wasn't it? Tipped it over the edge. Let's


look at the other stories. Victoria is rejoining us on the set. Let's


start with Dyson, Sir James Dyson investing ?1 billion into making


batteries better. Why is he going to achieve this when with elon Mus k


ploughed millions of dollars on this? He is the man who brought you


vacuum cleaners with the smiley face on the side. Bagless vacuum


cleaners. I have a three-year-old son and I was fixing one of his toy


trains and I was thinking when I was three in 197 #1rks the batteries


were identical, in smartphones you have got dense energy storage, but


batteries haven't come on and if you can make some kind of improvements


in this direction, then it will be, it will mean much longer distances


for electric cars and it will mean microgeneration at home makes more


sense because part of the problem is putting it back across electric


wires and losing the energy. It is about the size and the weight, isn't


it? If they can be small and light and really powerful, you are on to a


real winner, aren't you? If he gets this right, he will hoover up!


Very good! Hoover are a separate company and it


is trademarked as well. This is something we were alluding


to in the market, the people's bank of China governor warning the


country's corporate debt is too high. Corporate debt has risen to


230%. Why do these things matter and which should we be more concerned,


the level of corporate debt or level of total? Well, I think the


corporate debt is the biggest concern at the moment but the things


that China can do about that, they can basically force banks to swap


bad loans and bad debt into equity, banks forced to raise more equity,


that would take a lot of the debt levels down and the Government could


take on more debt as well. The reason the markets haven't really


reacted, this has been a gradually growing problem and at the margin,


the news out of China is better, the Trade Minister said the March trade


numbers would be better, house prices are starting to go up. Also


also, household debt is very, very low in China. They save more. They


are more, I wouldn't say savvy is necessarily the word, but more


cautious about their money. A form of savings rather than borrowing,


you don't borrow to do that. Trevor, thank you for joining us today.


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


Well, the weekend was pretty quiet at least on the weather front and as


far as president weather goes for the next few days, there is really


not much change, lots of dry weather, a bit of sunshine, clouds


too. Towards the end of the week, the weather fronts we are seeing


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