25/04/2016 BBC Business Live


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


The clock is ticking, but can the massive transatlantic


trade deal be saved before the end of the year?


Live from London, that's our top story, today - Monday 25th April.


Despite fierce protests on both sides of the Atlantic,


talks resume on the controversial Transatlantic Trade


and Investment Partnership - but is there even a future


for the trade deal once Obama leaves office in November?


Also in the programme - on the brink of collapse -


high street giant BHS is to enter administration,


We'll be live at its flagship store in London.


And a new week, but the same old problems.


We'll have all you need to know for the trading week ahead.


We throw away over a billion tonnes of food every year -


so we'll meet the man who says he can encourage us to waste less -


And, as a new report warns that 2016 could be the year of the shareholder


revolt over top boardroom pay, we want to know -


Has the gap between those at the top and the rest of us, got too big?


Hello, a warm welcome to the programme.


Today we are focused on the Transatlantic Trade


and Investment Partnership - or TTIP.


The 13th round of talks get under way today in New York


and President Obama is racing against the clock to complete


Whilst meeting Angela Merkel in Germany on Sunday,


he called on all European leaders to support the deal and not "let


Diplomats from both the US and the EU will meet later


to discuss the deal which has already been three years


TTIP aims to slash almost all tariffs on trade between the US


and the EU and reduce regulation to make business cheaper and easier.


One study estimated that the potential gain for the EU


and US economies could top $240 billion dollars.


However, the deal has faced fierce criticism.


This includes claims that harmonising regulation


between the EU and US will lead to lower standards of consumer


and environmental protection and safety at work.


There is also widespread opposition to rules


for investor-state dispute settlement.


This would allow companies to sue foreign governments over claims


Critics say it will undermine the power of governments to act


Stephanie Hare, an independent political risk analyst


Thank you for coming in. We saw images of thousands of people on the


streets of Hanover in Germany yesterday where President Obama was.


What is the likelihood of him achieving his goal before he leaves


office? He could maybe get the negotiations sorted but there is


zero chance of congressional approval while he is president. That


does not mean it can be approved. What are the key hurdles still? They


have got to talk about all sorts of things. We're looking at data


protection still, standards for the environment, health, public


procurement is a big thing, trying to make it so that European


countries can have access to public procurement tenders in the US and


vice versa, those will be some of the big hurdles still and there is a


to do. I think it is very ambitious to have it done by November, and


remember we have an election going on in the United States. The voices


of the critics on both sides of the Atlantic are getting louder and a


lot of criticism that most of this has been done in secret. Is that


fair or not? I find that criticism to be the oddest because the


negotiations are, by their very nature, done in secret. The


democratic process will happen afterwards. Congress could still


approve. All of the Parliaments will have to ratify this deal. If people


are unhappy with the deal once it is finalised, they will still have a


chance to express their will by meeting MPs. Here in Europe, it is


such a long road ahead, the European Union has to see it through and not


to mention national governments, and we could be in a situation where the


UK is not involved at all? That is right, we have a potential Brexit on


June 23 which would not stop this deal, it would just mean that the UK


was not part of it. President Obama said if the UK chose to leave the EU


it would go to the back of the queue when it comes to neb go shading a


deal. They're also presidential elections in France and Germany in


2017. These trading geisha nations take a long time. -- these trade


negotiations take a long time. The real question is, is it a good deal?


We cannot answer that right now. Thank you for coming in.


Let's bring you date with some other news. -- up-to-date.


In other news, figures produced by the Sunday Times suggest


the Indian Mittal family has seen its wealth shrink


by nearly $30 billion over the past eight years.


It's thought the change reflects the heavy losses seen in the steel


industry since they own Europe's biggest steel-maker, Arcelor Mittal.


The Indian government has revoked the passport of the flamboyant


businessman and lawmaker, Vijay Mallya.


He fled abroad last month following pressure from Indian banks


to repay $1.3 billion in debts owed by his failed company,


Some reports have traced him to the UK.


India is now seeking legal advice on whether he can be extradited


to face charges of money laundering and financial irregularities.


In the UK, High Street retailer BHS is to enter administration today,


The struggling retailer was sold by the retail entrepreneur


Sir Philip Green last year, for just ?1.


He had bought the chain for ?200 million in 2000.


Our correspondent Catriona Renton is outside the chain's flagship


We are expecting details later today about the feature of stores like the


one behind you. I know also about the 11,000 jobs. What are you


hearing now? As you say, this is the flagship store. BHS was once a


household name, one of the biggest names on the UK high street, and


this morning we have learned that it will go into administration later


today. An appointment has already been made with the administrators.


Once they get into the office, effectively, they will be able to


start the process. We have been talking to members of staff on their


way into work this morning. Many of them were far too upset to speak to


us, because all they knew was what they had seen and heard in the


media. Over the weekend, there had been two sets of talks, one with a


private investor looking at a possible financial deal, another


with sports direct will stop clearly those talks have failed. We are


looking at the business going into administration. If the administrator


cannot find a buyer, that would spell the end of an 88 year history


of British home stores, and that would be the biggest collapse since


Woolworths in 2008, which had a loss of 30,000 jobs. For now, thank you.


She and the rest of our business team will be keeping us up to date


on that story as it progresses. There is more detail on our website.


Shares in Mitsubishi Motors continue to fall -


after the revelations it falsified fuel economy data on its vehicles.


Tim McDonald is in our Asia Business Hub following this for us.


Tell us more. I understand they are coming out with their results on


Wednesday? That is right. Shares today in Mitsubishi motors continue


ground by the end of the session. ground by the end of the session.


This comes on the back of a bad few days for Mitsubishi. The stock


plummeted by 40%, its worst decline since it first listed in 1988. The


company admitted it cheated on its fuel efficiency tests. The company


has since stopped sales and production of those models. It


remains to be seen what the long-term effect of the scandal will


be but it appears that the company is very concerned. Mitsubishi will


announce results on Wednesday. There are media reports it may skip its


earnings forecast which is usually on the same day and was scheduled


for Wednesday. That is something we will watch closely. Thank you, Tim.


Investors are probably trying to lock in some games after the highs


we saw on Friday. Japan's Central bank is considering more stimulus.


So - a new week - but the same old problems.


Last week was largely positive for European markets


It was also another really strong week for oil prices,


That implies that investors are betting that the problems


We'll discuss that more in a moment, but what about Wall Street?


Michelle Fleury has the details from New York.


The week gets off to a quiet start. A report on new sales for March is


due out on Monday. It should give a sense of the strength of the


upcoming spring selling season. For Wall Street, the big event this week


is a meeting of federal policymakers. Investors expect


interest rates to be kept on hold. We are also in the middle of the


first quarter earnings season and it is fair to say there is not much


optimism surrounding Halliburton which reports this Monday. Given


plummeting oil prices, results for oil companies has been challenging.


A number of new technology companies will publish results including


Apple, Twitter and Amazon. Lots going on. That was Michelle in the


US for us. Stick with us as our cameras decide to whizz around the


studio, sometimes they do their own thing!


Joining us is Lawrence Gosling, editor-in-chief of Investment Week.


BHS? Gets, exactly. In a sense, it is not as a surprise it has


happened. We had the discussion a few weeks ago when they were


negotiating with the landlord. It is a business which has been teetering


on the edge for some time. It is always a surprise when it comes.


Retailers are downright Next? There is absolutely no Harold L between


the wake Next trades and the way BHS has been trading -- no parallel.


These stores are the main stays of the high street for so long and we


talked about Woolworths, the way we shop has changed and what we are


looking for is about more nimble faster fashion which BHS has not


been able to do? And very focused shots. You want to go somewhere


knowing exactly what you are after. You go to BHS and you can get


everything from children's pyjamas and lampshades. You do not expect


that these days in shops like our parents might have done. It is the


unfocused nature of these stores. I got a knit your own staff kit from


BHS for Christmas. Swiftly moving on, the rest of the market malaise,


or oil prices headed down again stopped and the share markets. I


think we have seen traders take a few profits on oil. The currencies


are always the talking point now, particularly we have had a balm in


London last week. This will carry on until the Brexit debate on the 23rd


of June for us here in London. The currency is where the story is at


the moment. -- we had Obama in London last week.


Tackling soaring levels of food waste.


We'll examine what's been done to tackle the trillion dollar


problem and meet the man behind one company that says it has


the answer and there's money to be made in doing it.


You're with Business Live from BBC News.


The government is to force all companies that make cold calls


to reveal their phone numbers when they make contact


The new rule is part of a crackdown on unwanted calls -


but campaigners say the changes don't go far enough.


Christopher Graham is the UK Information Commissioner.


Good morning to you. Just talk us through what the changes are. This


is a very welcome change. It is a small step but it is significant. It


means when a call comes through, instead of saying number withheld,


it will give the number. That will give you a chance about whether you


want to answer the call. You have the information and you can retrieve


the information and report to the Information Commissioner's website.


It helps us in our job of investigating and stopping these


unwanted calls. Do you think it will stop them which, if we are all


honest, they drive us round the twist? We are making progress bit by


bit. Last year, we persuaded the government to change the rules to


make it easier to impose fines. We are imposing our 90th find dealing


with this problem. We will have fined over ?2 million. It is making


the direct marketers think again. Respectable direct marketers are


sticking to the rules. The chances are finding it is becoming


increasingly difficult. I think the directors of these companies should


be made personally liable so they cannot just close down the operation


and start again the next day when they are hit with a fine. There are


still a lot to be done but this is a little step forward.


What's the geographical implication of this? We have a network of data


protection companies around Europe and the world, so where we have


operators in Russia, or whatever, we can talk to operators to get them


closed down. It's a never ending issue, but we are on the case and


making progress. Christopher Graham from UK information Commissioner,


thank you for your time. Interesting development in the UK. It could


certainly make a big difference. Talks continue over the


transatlantic trade partnership, whether they will get the go-ahead


and get the deal done between the EU and the United States before the end


of President Obama's time in office. "One man's trash is


another man's treasure" - Well, our next guest is taking


that quite literally. Roughly one third of the food


produced for humans every year That's 1.3 billion tonnes of food


that ends up in the bin at a cost of around a trillion


dollars each year. So tackling that problem is proving


to be a lucrative business. One of them - Winnow - wants to cut


down on the amount of food waste They do that by installing


electronic scales into kitchens and the software processes a report


highlighting areas where food Customers pay an annual subscription


fee for the service. And the company claims


that the technology can help improve Marc Zornes is the founder


of the company and he joins us now. Good morning. Let's pick up on the


6% figure. It's very specific. How did you come up with it, and it's a


big difference for business. It's a bold claim. Absolutely. We believe


that food shouldn't be wasted and technology can fundamentally change


the way we work with food. We work with businesses like Compass Group


and core hotels, large businesses who produce food in advance, and we


put into is to monitor and reduce the waste. We find anywhere between


ten and 20% of food going into the kitchen is often thrown away. If you


monitor that and equip chefs with the right data we can cut back on


that. Where would the scales go, what do they way and what report


does it produce? They go to the same place the food is thrown away, and


as it is thrown away, there is a change in the weight that makes the


scales wake up, so if they throw away aches, it can block that. It


goes back to staff, so it shows what they are throwing away. It raises


the awareness of the waste in kitchens. The chefs can then


identify where they need to make improvements in production. Are the


staff quite surprised by results? We often find kitchens underestimate


how much food is being wasted. When we put in place the tools to monitor


it and equip the chefs with the data, we can cut food waste by half


or more in just a few months. I understand nobody else is really


doing this. You started the company around two and a half years ago in


the UK and are now operating in five other countries, notably China and


Singapore. What gave you the idea? I used to work for McKenzie and


company where I was leading research on resource productivity and found


the enormity of the problem of food waste, $1 trillion of food waste,


that's more than 1% of global GDP. We can't have that in today's's


economic climate. We focused on the is that our tea industry where if we


save the clients food waste they save money. We talked about one


man's trash being another man's treasure. We have seen this happened


in recycling. A real gold rush for the firms that get in first and get


their systems in place, they could cash in. Is this the next gold rush


as far as waste and rubbish is concerned? We absolutely think so.


One company that has taken a big step forward is core hotels, the


largest hotel chain in Europe who have made a commitment to reduce


food waste by a third by 2020. We have challenged other companies to


make those reductions. Fascinating conversation. Thank you for coming


in today. Let's see what other


stories are being talked When will driverless cars


finally hit our streets? Well, the race is on between


developers to come up with a mass market, affordable


and reliable autonomous vehicle. And they could be on our roads


sooner than you think. The boss of Ford has told the BBC


he expects to see them Our Economics Editor Kamal Ahmed


spoke to Mark Fields and asked him where the the biggest threat


to his company would come from - traditional rivals, or newer


competitors like Google. There's a lot of traditional


competitors we have in our business, There's a lot of new nontraditional


competitors who are looking at the automotive space and that


addressable market, and saying, So from our standpoint


we are looking at a number of the technological changes


in the industries and we are viewing that is an opportunity,


not as a threat. There will be some things we do


on our own to be able to satisfy those customer needs


that technology enables. And other times we will


partner with others. That's the reason we set up a big


research and innovation centre in Palo Alto,


because we want to collaborate with and participate


in that environment. Do you think Apple want to build


their own car? I read what everyone


else reads in the paper. Our working assumption


is that they are, and that again provides us the right motivation


to make sure we stay very focused, not only on the product,


but overall on the experienced not only on the product,


but overall on the experience the customer has interacting


with the product and services Could you imagine building


a car with Google? Contract manufacturing is not


something that appeals Other aspects, as we work


with others, who knows? But that aspect of being a contract


manufacturer is not something that Does that appeal to you? A


driverless car? It's that whole debate about their always being in


element of risk driving a car. What if you are late and want to go a


different way? I contact with another driver is so important,


because you can assess whether they will let you pull out. You can't do


that with driverless cars. You are already stressed about it! Lawrence


is back with us to talk us through the papers now. Normally we would


look at the tablet but we have not charged the battery. It's not


working, and it's not my fault today! We can talk about the


stories. We will start with the story on the pay ratio between


bosses and employees. It will be the hot topic of the year. We saw it


kicked off in a big way with the BP AGM. It's fascinating. We are in


this period where big insurance companies and pension funds in the


UK are beginning to protest against the level of executive pay. We had


BP last week. We are expecting to see Shires, the pharmaceutical


company, this week. This story from the Guardian is talking about the


suggestion from legal and general that there should be a direct link


between the pay of the average worker, which in the UK is ?27,500,


and the Chief Executive 's various companies. We have talked about


shareholder activism before, and Barclays was subject to it before


last year. We talked about the power shareholders could wield, but in the


past when it has got to the crunch moment, they have not followed


through. Is it any different this year? I think your cynicism is


correct. Even legal and general talk about inverting in 93 cases. But


even when you do vote, as we saw with the BP case, it can be


overturned, even when the vote went one way. It remains to be seen. A


lot of the executives of big Footsie companies are very well paid. One


viewer says executives are paid too much, but they also decide their own


wages. It's like wardens having the keys to the prison. It's not


strictly true. There are remuneration facilities. Tackling


climate change is a good news for the economy. Mark Carney talked


about this last week, and he talked about the stimulus it could give to


the global economy by increasing productivity. We heard about the


effects of pollution. The governor of the Bank of England. We always


think of Beijing when we see images like that. They have seen people


choosing to leave or not post their international staff there because of


the problem. It is one of the major cities in China, and it's having a


huge effect on the population and the health in China and other


countries. Thank you, Lawrence. We will rely on the trusty papers from


now on.


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