22/04/2016 BBC Business Live


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President Obama has made a powerful appeal for Britain to stay


in the European Union, arguing that EU membership magnifies


Live from London, that's our top story on the 22nd of April.


President Obama writing in the Telegraph today doesn't shy


away from arguing that Britain should vote to stay in the EU.


We're going to be discussing that and the economic relationship


Also in the programme: The co-founder of Apple has told


the BBC that all companies should pay a far higher tax rate,


adding that he doesn't like paying a higher tax rate than the company


Shares of Japanese automaker Mitsubishi Motors are down


Asian markets meanwhile have traded lower today, mirroring how US


There is a basic look at what is happening on the European markets.


And we'll be getting the inside track on the week's


biggest tech stories with our very own tech guru,


including Google's battle with the EU and less than stellar


And on the day that one business body has admitted that


executive pay is too high, we want to know if you think the way


He meets David Cameron in Downing Street on Friday


afternoon in what's expected to be his last visit to the UK


He's already making waves, writing an article in the Telegraph


newspaper supporting the case for the UK


to remain within the EU in the country's


But the global economy will be central to almost


Earlier this month the IMF once again lowered its forecasts


for the world economy for the year from 3.4% to 3.2%.


Countering an increasingly assertive Russia will also be on the agenda.


The US is keen for Cameron and other EU leaders to maintain sanctions


targeted at Russia's state finances, energy and arms sectors,


which have played a role in the Russian economy spending more


And then there's the debate on Britain's membership of the EU.


Writing in the Daily Telegraph Mr Obama said the UK had benefitted


from being inside the EU in terms of jobs, trade and financial growth.


Several senior UK politicians bluntly telling the president


in an open letter that "matters of sovereignty are best left


With me now is Tom Packer, Fellow of the Rothermere American Institute


Great to have you. Both Jamie and I wondering why President Obama is in


Britain. We can understand Saudi Arabia, Germany, central to the


eurozone crisis, is he here... He says he is here for the Queen's


birthday but he is here for Brexit? That is my view. I am sure he would


have said happy birthday to the Queen but he does not have to be


here to see it. Not with a full representation of his own party. The


biggest thing to emphasise as I would not emphasise how much


Americans are focusing on the Brexit debate. President Obama speaks for


himself and a number of Democrats listening and for the State


Department. He does not speak for the whole American political


establishment so Senator Cruz was sending much more positive about


Brexit the other day. What is in it for him or the US? Why is he doing


this? It is not just a favour for David Cameron? Absolutely not. One


multilateral organisations which is multilateral organisations which is


a key part of President Obama's political creed. The US for half a


century has wanted us in the EU because they see us as a pro-US


voice in the European Union. Liking multinational institutions, they


have been saying recently they like to do trade goals with blocks, with


a transatlantic trade partnership. Wooden they not be prepared to deal


with the UK on its own? There is a degree of unpredictability but I


would be surprised if the US did not do a deal with the UK. They have


often found it easier to do deals with countries like Australia. Apart


from all of that, there is a lot on the agenda. How big is Russia?


Central to the US to make sure David Cameron and Britain are onside and


the EU to keep the sanctions up. Well there might be talking about


the IMF? I don't they will be talking about the global forecasts.


If we were not on the same page on Russia it may be an issue but I do


not think there are serious disagreements between the two


governments. Thank you. Compaq from the University of Oxford.


In other news: Earnings at Google's parent company Alphabet have


disappointed the markets, despite a 20% increase


in profits in the first three months of the year.


Analysts were unhappy that the average price of online


ads, known as cost-per-click, fell by 9% in the quarter.


Revenues at the world's second largest company rose to over


$20 billion, but that didn't stop its shares


Shares in Starbucks also fell 5% after it also missed revenue


The coffee chain's earnings came in slightly under analysts


Demand in the US, as well as solid sales in Asia, helped to offset


slow growth in Europe but still missed


Uber has agreed to pay $100 million after a class suit. The keys could


threaten the taxi hailing app's business model.


PSA Peugeot Citroen offices have been raided by anti-fraud


investigators as part of ongoing investigations on pollutants


The firm said its vehicles are emissions compliant.


Authorities and car manufacturers have been on the alert in the wake


of the Volkswagen emissions scandal, which emerged in late September.


And I guess the Mitsubishi scandal as well. When was the last time we


spoke about the Greek debt crisis? It has been going on so long.


They are gathering in Amsterdam. Funny that, on a Friday! The


discussion is still going to be around, $360 billion is the debt


mountain that Greece is sitting on. It is unrealistic for Athens to pay


that back. The IMF has still not joined in?


We are in the third bailout. This is to get the second chunk. They are


reviewing. I am more interested in this story. I am going to come back


to that. The ECB, we could be seeing more negative interest rates.


Mitsubishi Motors' fuel economy scandal has broadened as US


regulators said they were looking into reports that the carmaker


submitted misleading data on at least one more


Mitsubishi's share price has fallen to a new low.


Give us the latest. To give you an idea of how much damage it has done


to Mitsubishi's market value, before the scandal it was 864 yen and two


days later it has claws that 560 yen, so $3 billion wiped off the


market value. That may be the start of its troubles. US regulators


seeking more information on whether more models are involved,


specifically those sold in the US, and the Japanese transport minister


said he may push Mitsubishi motors to buy back the cars involved.


Inevitable lawsuits and fines, Mitsubishi looking at paying out a


lot more for some time to come. The markets are doing reasonably well.


The main feature has been the oil price yet again. When the oil price


goes up stocks generally go up and when the oil price goes down stocks


generally go down. That is what is happening at the moment. Slightly


affected by the problems Mr -- at Mitsubishi. The biggest three


default that stock has had since 1988. The Nicky managing to bridge


that to one side and make a small gain. We have had the oil price


moving up which has helped that market. The oil price did a strange


thing yesterday, gained and then fell after lunch, fell off a


relatively small cliff. Largely because there was a strike in Kuwait


that was called off which meant that supply was going. People coming back


about fundamentals and demand. All the other markets in Europe doing


pretty much the same thing. Our reporter has the details about


what's ahead on Wall Street Today. At Microsoft higher than expected


taxes meant the company missed expectations. Without those taxes it


did quite well reporting a $5 billion profit as its business


continues to see strength. This Friday we should get a sense of how


American consumers are spending their money when McDonald's and


American Airlines report their first-quarter profits. Another


bellwether for the US economy General Motors might offer details


about its transformation into a ditch till industrial company when


it turns on its first quarter results.


Joining us is Mike Amey, managing director and portfolio


I want to talk about oil. The oil price came off a little bit.


It came up and went down at the end of the strike incomplete. The oil


widening the dock of the equity market.


It seems to be. Generally speaking the markets have shrugged it off.


The general assessment is it is difficult to get a deal between the


Saudis and the Iranians. Would you buy shares in oil at the moment? In


our view we think we have seen a lot of the move. No? I do not think so.


I think we have seen most of the movement we are going to see. One of


the reasons the FTSE is up is because these stocks have moved


already and I would argue they are not going to go lower. The challenge


we have at the moment in commodities, stock markets in


general, they tell you that we have had a decent bones after volatility


but we are at relatively high levels and less growth can accelerate. The


Greek debt crisis. The IMF is in its third bailout deal. It is in the


lending because it has lent them a lot of money. It has not lent them


any extra money by they want to get men on the money out of they have


already linked. Very much on the table. You are going to take us


through the newspapers. Later. And we will be looking back at a bad


week for Google as they battle the EU over their android platform


and release some less You're watching Business


Live from BBC News. The UK government has announced


it is willing to take a 25% stake in any rescue


of Tata Steel's UK operations. The business department said


it was preparing to make a support package "worth hundreds of millions


of pounds" available Business Secretary Sajid Javid said


the money would be offered on commercial terms,


but the government would not take What does business make


of the announcement? Terry Scuoler is Chief Executive


of the manufacturers Terry, what do you think of this


particular deal? It is a positive offer. I applauded. Hundreds of


millions of pounds of commercial possibly soft loans. Allegedly


millions of pounds worth of grant aid. And co-owning the business up


to a level of 25%. One would think this would strongly encourage a


potential buyer to come forward. Is it a little bit too little too late?


We could always look back and think about what should have been done and


could have been done. A number of governments could be accused of not


doing enough. But for the stake -- sake of the steel sector and those


communities in South Wales, let's concentrate on finding a buyer


within a reasonable time frame... That is the point, isn't it? Who is


going to want to buy, really? It is a very good question. But look back


over history. There is plenty of money out there in various forms of


funds. There are business leaders out there who invariably do come


forward, take the distressed assets and have a fighting chance of


turning them around. I am pretty convinced that there is a buyer out


there. But the buyer needs to be found.


You are keen to show this. This was in the FT. It is how to spend


magazine. Can you see that outfit? Six grand. ?6,000 for the outfit. A


mere bagatelle. Jamie has already got two!


You're watching Business Live - our top story.


of a visit to Britain, President Obama has repeated his


support for the country remaining in the European Union.


His intervention comes ahead of a British referendum


Mr Obama says membership of the EU magnifies Britain's influence.


It's been another big week in the world of technology,


with the EU investigation into Google's Android operating


system, the big job losses at Intel coupled with ARM results,


and possibly the Netflix story - shares dropped after Amazon launched


You are curious about that outfit. I could see you in it. My wife said


there is an FT special on men's fashion, and that I should take it


with me! Google, what a hell of a week. Alphabet, numbers... What do


we make? Very interesting. The numbers would be pretty good by any


the level you. Revenues of $20 billion. They did not hit their


targets. Wall Street never likes that. A worrying rise in costs. It


is basically the move to mobile. Everyone is moving to mobile. Google


has been pretty successful in moving its advertising operation to mobile.


That is costing more than Wall Street expected. I love this


division of alphabet. Basically, this is the stuff they splurge money


on, which may make money one day down the track. It includes things


like self driving cars. A business they board for a $3 million a few


years ago. Smart thermostats for your home. All of that appears to be


going not terribly well. I have been aware of this story before. Looking


at their share price, over the past year it has gone from 550 to 750.


People have not lost confidence in this company. Some of those bets


will come off? Undoubtedly. What you say about the share price is


interesting. When a share price gets that... It is predicated on big


growth and on some of those bets coming off. If they do not come off,


share price dips. I want to get Internet flicks. The investigation.


Europe seems like it is going through Google's blood. This is a


long-running battle much like the battle the EU had with Microsoft. A


very important front because it is about android. Google's future lies


in Mobile. That is where a lot of its revenues will come from in the


future. They are being investigated as well? That has been going on


since 2010. We may be near a verdict on that one. A big battle about


streaming video, the future. Net flicks, one of the hot stories of


recent years, just a little blip this week when Amazon made it clear


it was going to punch a bit harder in that field, separating the Google


service from the Amazon Prime service. A few questions about the


share price. Is it predicting endless growth when it may not come.


Always a pleasure. Have you heard what Steve Wozniacki told the BBC?


He wants to pay more tax. You can watch it right now.


The co-founder of tech giant Apple has told the BBC that he thinks


businesses should pay fairer tax - Ben caught up with him.


Do you worry the company you found it has moved so far away from its


founding principles that it is now looking to actively pay less tax? If


you make money you should pay some money to government on it. We knew


we would be a worldwide company. We just assumed we would pay taxes on


it. Maybe the tax rates are different for a company than a


person, which is something that bothers me to this day. I look at


any company that is a public company, it has to be as profitable


as possible. That means financial people studying the laws of the


world and figuring out what is technically legal. You you have any


power to change things? I do not think it would be right for me to


try to influence how Apple handles it. I would have no effect anyway.


They are going to take the last thing that saves a penny.


We are going to do a story about pay. We are going to look at some of


the other interesting stories. There you are!


Mike Amey, the managing director and portfolio manager at Pimco,


Business leaders are saying it is down to directors. Senior executives


are potentially getting paid too much, according to the Institute of


Directors. One, there is potentially a disconnect between the performance


of some companies and the pay of the senior executives. My read of this


is that it is pretty clear there is a challenge out there. If you have


these pay packages over three to five years, you can get some bizarre


situations where somebody's pay could be very large in a year when


the stock price could be down. What did you think about Martin Sorrell


getting ?7 million from BP? We do not actually own single stocks. We


on them via certain other routes. We did not vote in either of those.


When we rank any company, you rank corporate governance alongside


performance of the stock. There are some classic examples of corporate


governance. Volkswagen, for example. The way we think about it is an


aggregate of corporate governance rather than building an independent


pay packages. The south on the morning post. This is Beijing's


answer to the Panama papers. Skynet one was last year. This year is


Skynet two. Broadly speaking it is an attempt to track money that might


have left the country via certain securities routes. -- circulators.


This has probably been triggered by the Panama situation. This is the


second time they have done this. Generally speaking you do that when


you're reasonably comfortable economy is on an even keel and you


can focus on corruption. We have to talk about Prince.


Legend? Was he the music of your life? If I am completely honest with


you, David Bowie for me was the man. I am still morning only. Great


performer. Front page of a lot of the newspapers is a classic concert


where he performs Purple Rain in the rain at the Super Bowl.


You cannot get better. What about you?


Bowie, I'm afraid. Always a pleasure. Have a great weekend.


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


webpage, and on World Business Report.


A little taste of winter in the next few days. An echo of winter. It will


not be that cold. There is air coming all the way from the Arctic,




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