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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,