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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