20/07/2016 BBC Business Live


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


So it's official, Donald Trump is the Republican


He has announced tax cuts for the rich and a hard-line on trade.


Live from London, that's our top story on Wednesday, 20th July.


He's vowed to slap tariffs on Chinese imports and build a wall


We'll take a look at what Donald Trump's policies


could mean for the US economy and the rest of the world.


Also on the programme: As the UK's new Prime Minister vows to get tough


She wins the backing of the world's biggest fund managers.


She'll also meet European leaders for the first time later.


And markets look like this in the first half hour of trade.


The latest UK jobs numbers are due in the next hour.


It's the size of a small coffee machine and can diagnose


Later in the programme we'll speak to the inventor of Samba,


an award-winning medical device aimed at tackling one of the world's


Today we want to know what would make you pay


How about a billboard naming and shaming those who ve


This is what's happened in China, is it a sensible move


And we're starting today in the US where Donald Trump has been formally


nominated as the Republican candidate for the US


Next week Hillary Clinton is due receive the formal stamp


So what could the presidency of Trump or Clinton mean


Both hold vastly different views over tax and the size of the state.


While Hillary Clinton believes the richest people in society


Donald Trump is staunchly opposed - saying he favours slashing tax bills


for the highest earners as well as those on lower incomes.


On the minimum wage - while both are in favour of reducing


the tax burden for the least well-off, the Democrats have also


proposed raising the minimum wage to $15 per hour.


Trump has previously said he's against any changes.


But recently he's softened his language, meaning there could be


a rise in the federal minimum wage from $7.25 an hour


Despite their differences, both candidates are united


in opposing the controversial trade deal known as TPP.


It involves 12 Pacific Rim countries but Mr Trump has already


vowed to impose significant tariffs on goods imported


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


Nice to see you Tom. Do you know more about what their economic ideas


are? Yes, I would emphasise that in particular in the case of Mrs


Clinton deference to the currents within their political party.


Growing concerns about inequality and she, I think, is sympathetic to


it and is responding to it. From her point of view, will it be an


evolution of what Barack Obama has introduced or any significant


change? That's, I think that's the idea, a slightly more sceptic view,


higher minimum wages. Having said that, she has to get all this


through Congress and there is a limit to how much she can push the


board on executive actions and Congress is Republican controlled.


What about Mr Trump? Mr Trump is very different from Mrs Clinton who


has been high level in US politics for a quarter of a century. Still


mosty the same themes. The biggest difference is on trade. If you look


at his language clear, it is not clear that he is that protectionist.


Anyone looking from the outside in will think, "What does it mean for


trade with the United States and will we suddenly see tariffs being


slapped on left, right and centre in the talk of protecting the US


worker?" Mrs Clinton, I think it won't be that different from Barack


Obama. There is a big protectionist movement in her party. She is has a


long history of opposing trade deals in election years and deciding they


are a good idea when they're not. Mr Trump is less predictable than Mrs


Clinton, but when one looks at the Republican platform, it is


surprising how little change there has been. Once he is president, he


may decide there are more good deals than it looks like at the moment. To


what extent is the economy on the minds of the voter this time? I


think reasonably so and there is some signs of softening, of course,


but at the moment, I think it has been relatively low for an election


year, less so than 2012, but all it would take is bad economic news to


force the economy up the agenda. Thank you for coming in. Very


interesting and we shall keep across it whether you like it or you don't.


We will be on the sclams a long way to go before we get to a result in


the US Presidential elections, but we will keep you up-to-date.


Three States have taken lawsuits against Volkswagen. New York's


Attorney-General called the use of the defeat devices a widespread


conspiracy. VW says the allegation are not new and the car maker has


been co-operating with US authorities. Eurostar cancelled for


trains today. The firm suspended three train services on Tuesday and


a further six services have been cancelled today. Trains between


London, Brussels and Paris are all affected. Eurostar is urging


customers to check the website before setting off.


Brazil's Supreme Court has overruled a decision ordering mobile phone


operators to block access to the messaging service Whatsapp.


The president of the court said the ruling had been disproportionate


because the app is so widely used in Brazil.


It's the third time in two years that WhatsApp has been threatened.


An important day for UK Prime Minister, Theresa May. She is


meeting Angela Merkel in Berlin. It is the first time that the two will


talk as leaders of European countries. Fa delity backs Theresa


May's pay plans. They are saying they are right behind her in her


views when it comes to what bosses earn in comparison to those who work


for the bosses. The crux of this debate is about so-called long-term


thinking. So pay packets, remuneration deals that reward


long-term thinking rather than simply short-term results. So not


just based on purely the profits over the course of a year, but what


they can manage to deliver in the longer term and they say that should


be the way to pay bosses. That's Dominic Rossi and that's a company


that manages $250 billion worldwide in assets. So they feel they have a


voice. More on that online. Now Pokemon fever. It has been


moving share prices. Nintendo's share in Japan actually fell. They


fell 15% on news that the release of the game could be delayed in Japan.


Let's find out why. First, Charlotte Glennie


is in Singapore. Why the delay? It has been reported


there will be a delay and there has been a rally in the Nikkei that


lasted several days with investment excitement in the Pokemon Go craze.


Until today when this reported delay was announced and this led the


shares to die, ending down more than 12%, but there is a winner out of


this, Sally and that's shares in McDonald's Japan are up, nearly 10%.


This follows reports that the fast-food company been the game's


first sponsor and will act as a gym for Pokemon Go players where they


can battle against each other and get new Pokemon characters. It is


expected to bring customers flocking to McDonald's. When that will be


nobody knows because there is not an official launch date for the game at


this point in Japan. Charlotte, thank you.


It still amazes me that investors get so excited by effectively


cartoon characters! Nonetheless, Japan's Nikkei ending the session


down a quarter of a percent breaking the seven-day winning streak. Partly


blamed on a bit of profit taking. As we heard from Charlotte, shares in


Nintendo falling after the reported delay for the launch in Japan. It


does show how much is riding on the success of that game after that


stellar growth off the back of its success elsewhere in the world. A


quick look at what Europe is doing. Yesterday we got the slight rise in


inflation, today it is the turn of jobs data. Average earnings are


expected to rise a little bit, but the overall unemployment rate,


probably going to stay about 5%. Of course, it is possible that that


means firms put off hiring in the run-up to the election, the EU


referendum, but, of course, it is more likely the real impact will be


felt a little later on as firms decide what it actually means for


them in the real economy. So we'll talk about that in a moment.


Michelle has the details about the day ahead on Wall Street. Two


companies watching Softbank's purchase of Arm Holdings with great


interest are Intel. Key for Tin tell's future is


lessening its dependence on the PC market which is shrinking, but


profits at the largest chip maker got a boost after the PC market did


better than expected in the second quarter. Prospects for Coolcom


aren't so rosy. Analysts are predicting a drop this third quarter


revenue. The results from the big banks continue to roll in. Goldman


Sachs turned in an impressive performance on Tuesday. Can Morgan


Stanley keep up the momentum when it turns in its report card?


Lots of earning stories coming out of the States.


Joining us is David Buik, Market analyst, Panmure Gordon.


You wanted to mention Goldman Sachs. They are had better than expected


results, but you are not so sure. I think the whole global equity market


has been brought forward on a wave of quantitative easing and Central


Bank co-operation, I don't think there is any doubt about that


because this is the fourth quarter in the United States where the


quality of earnings have fallen. Easily the worst performing sector


is banking and I wanted to highlight Goldman Sachs because everybody will


say, well, you know, it is not terribly good, but actually when you


consider that their share price a year ago was $186, today, it is


$186. They had a desperate first quarter, but there was a $2.7


billion fine for litigation which they haven't got that time. But the


fee earning from M and A activity, which of course, they blame on


Brexit, was down by 18% to 1.35 million, earnings per share was up


from 97 cents, sorry, a dollar 97 to 372. Shares fell 2% because


everybody went, "OK." The reason I'm mentioning it is because look over


your shoulder into Europe and particularly Italy and also Germany


and Spain, all is not well. Away from the corporate news, economic


news, unemployment figures in the UK, it is expected to stay steady,


but we will be keeping an eye on the earnings figure because that's the


bit that means we will have a bit more money in our pocket? We might


just see a slight slither down because of the effect of Brexit and


people not being prepared to employ ahead of the results. These things


are always in the past or rather historical so maybe above 1.6


million. Thank you, David. David will be back later. He has got lots


of issues to tackle including the naming and shaling of those who owe


money on billboards. We will talk about that later!


It is the size of a small coffee machine, but it can diagnose HIV in


two hours. You're with Business Live from BBC


News. When is a worker not a worker? It is


an important legal question that's being grappled with in an employment


tribunal today. It involves Uber the taxi hailing app. It has shaken up


the taxi business across the world and its cars carry the Uber brand


but the drivers are self-employed. A group of 17 drivers backed by the


GMB Union are claiming the American company is not respecting basic


workers' rights. They say that drivers should receive holiday pay


and a minimum wage. Theo Leggett is in our business newsroom. Just talk


us through, it is a really controversial issue?


the fundamental thing is, is Uber a technology company or a transport


company. It might seem like a strange distinction but it's not


because of Uber is our technology company, need to which connects


customers with drivers. Those drivers can then be considered


self-employed so they don't have certain employment rights like an


entitlement to the national minimum wage, holiday pay, sick pay and so


forth. But if Uber is a technology company, then they don't have those


rights. It's a complicated issue and rights. It's a complicated issue and


one that is Uber is fighting not just in the UK but around the world.


How significant is it for Uber that the drivers ourselves and void? As I


said, it means it is effectively cheaper for them to offer the


service. If it has to pay the national minimum wage and benefits,


that increases its bottom line so it has to pay more. It can't offer as


cheap service. Uber's selling point is that it is cheap convenience.


It's a key point but not just for Uber. It affects other businesses


that operate in a similar model. For example, parcel delivery services


operate a similar model in some cases where the drivers are


effectively self and void. If it goes against Uber, they might be


next in the firing line. -- self-employed. Thank you for joining


us. Yellow gets talking through the implications of that lawsuit into


Uber. -- Theo Leggatt. It could set a prospect for other comp -- a


precedent for other Company is around the world. Let's take you to


the web page because a lot of stories on there that we have


already covered on the programme including UK jobs figures due later.


Also, if you are planning to travel by Eurostar, information about


today's disruption on the business live page so look there for updates,


as well as their own website. Donald Trump has been unveiled as


the public nominee for the US president. He has vowed to protect


the country from cheap imports and has also announced he will slash tax


bills if he is voted into power. A long way to go yet.


A quick look at how markets are faring.


All in the green which makes the change but keeping and I them in the


next 45 minutes, when we get the latest jobs figures in the UK that


could affect them. Let's get the Inside Track


on the battle to stop the spread Yes, when it comes to tackling


epidemics, it's certainly true that Following a successful


career working at a global pharmaceutical company,


Dr Helen Lee moved into academia. In 2002, she founded


her medical company, Diagnostics For The Real World,


which aims to commercialise the technologies developed


at Cambridge University. The company works with medical


charities around the world, and retains up to 15% of the profits


generated from her inventions. Last month, she won


the prestigious Popular Prize at the European Inventor Awards


for her ground-breaking device. The so-called Samba device


is the size of a small coffee machine and can diagnose HIV


in under two hours at a cost That is the thing that could make it


so worthwhile. With us is Dr Helen Lee,


Chief Executive, Diagnostics It is a real pleasure to have you on


the programme. We can see the machine rights next EU. Talk us


through how it works. Usually, this particular test would take a machine


the size of a Mini, and it can only be done in centralised laboratories.


The idea is to reduce the size, such that it can be carried on the back


of a motorbike. That is in our design goals. The chemicals are heat


stable and do not require cold storage or cold transport. Other


agents, something like 88 reagents, are put into a unique cartridge, and


that can only go one way, and you couldn't get it wrong. So you can


put this in the middle of an African village in the heat and the dust and


it would still work effectively and you don't need anyone with any


medical knowledge to work this device. Those who live in the


village can do it themselves. It is so simple. I always say, anyone who


can cook can do it, obviously that leaves half of the men out! We will


get a reaction to that comment straightaway!


I not getting involved but the interesting and important thing is


the idea that currently, without this machine or one like it, people


have to travel quite a long way to get to a clinic. They would go and


have a blood test and the requirement would be that they have


to go back several weeks later to get the results. 70% of people don't


do that. Whereas with this, they could do it immediately and get the


results straightaway and take the appropriate action immediately.


Exactly. The question is, this is fantastic, the provision of this and


I understand it's a question of government and non-government


organisations and charities that are helping this be available in


developing countries but what about the care and the help that they need


when they have got the diagnosis? That is the problem. Years, as proud


as I am of this machine, it is only a tool. -- yes. Unless it is linked


to care and appropriate care, you will not have the whole chain. The


idea and the goal is really to treat people effectively. I must say, it


is already being used in villages in Malawi and Uganda. More than 90% of


the results are given to the people on the same day. I see these women


and children sitting on the lawn because there is no waiting room and


I don't know how they get there. I don't see any buses. It is very


critical to give them the results and appropriate care at the same


time. What I think will be critical is to implement it in many


countries, linking it to the appropriate drugs, and to that


extent, we have so far raised almost 100 million euros for the


development of this machine from charitable organisations like the


welcome trust and the UN's children's investment fund. But I


think much more funding will still be necessary to really implement it


for the benefit of the patients. Thank you for joining us. It is a


fantastic machine and quite light. I picked it up. I can imagine trekking


across large areas with that in a backpack or something. And attic.


May I just say, it is really the work of the team, like Leicester!


Wonderful. Do you cook? I do. I'm not part of


that 50%. Thought we had better establish


that. It's been a busy time for earnings,


including Microsoft, swinging back to profit. All as a result of it


Cloud compute in business. Quarterly profits came


in at $3.1 billion, reversing the $3 billion losss in the same


period last year. When Satya Nadella took over


at Microsoft two years ago he said the future of the company


was in Cloud computing services. That strategy seems to be paying off


with the latest results beating Revenue from Microsoft's Cloud


services have grown by 100% in the last three months


and subscription sales of the Office software suite have been strong,


adding up to a $3.1 billion profit This time last year,


he was telling investors the company had lost $3.2 billion


thanks to its disappointing acquisition of Nokia's


mobile phone business. With that deal behind the company,


last month Nadella made his biggest gamble yet, spending $26 billion


on the business social The company is expected


to integrate the service with its own business products soon,


further boosting its Cloud division. There was one note of caution


from Microsoft, however. It admitted it would probably


miss its target of 1 billion devices David Buik, Market Strategist,


Panmure Gordon - is back I understand you make a killer


scrambled eggs. Not a lot bettered in the realm. I'm not normally


arrogant about this but they are the best and I always make a blinding


spaghetti Bolognese. Can you run shuts scrambled egg in time for


Business Live, we can get it on the table? Bring the ingredients. Lets


not talk about eggs but excessive pay, see what I did there? Vowing to


clamp down on it. Now the backing of a big hedge funds. It's interesting


point. She was very exposed about this in what I thought was an


excellent delivery on Downing Street. I think she really means it.


What we need to do, as you pointed out before, is the coordination of


boards, whether they have workers, members, women on it, and also,


trade union membership and the rest of it because we have to close the


pay gap between those that have and those that have not. I think it is


extremely important. But without the full coordination, it's not going to


work. The other thing I think people tend to forget, there's a huge


difference between being a manager that manages a business and an


entrepreneur, who has built the business up from nothing. It takes


some unlike Sir Martin Sorrell. People resent his ?70 million bonus


this year but I don't because it is his business, it has 132 companies


in it he's built it up in the last 35 years from scratch. What about


Bob Dudley at BP? You've chosen another bad one that I would support


because politically, what he has done, staving off the problems in


Russia and the US, he is worth his weight in gold but if you want me to


go on to someone else, there's a big problem with money elsewhere. 'S


bashing billboards with the names of the deadbeat debtors. This is the


title in China Daily which is the state-sponsored newspaper. --


splashing. It is not necessarily individual 's but companies that own


mind. Is it a good idea question mark Diskerud especially when the


small supplier is greed by the large company which makes it wait until it


pays off and squeezes it out of business. Totally unacceptable but


he would never get it through this country and the Court of Human


Rights and all the rest of it would have their big boots all over it.


But I think it's a lovely idea. Thank you for joining us. See you


again soon, scrambled egg on toast next time he is with us. That is


Business Live. Heat and unity going out with a bang


across northern and western areas after what was the hottest day of


the year so far yesterday with


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