:00:11. > :00:16.Prospects are fading fast for the massive free trade deal between
:00:17. > :00:19.Europe and the United States, EU trade ministers meet today to
:00:20. > :00:23.discuss the future of the transatlantic trade and investment
:00:24. > :00:42.partnership. Live from London, that is the focus today.
:00:43. > :00:48.Unfair trade, transatlantic megadeals, face a growing backlash
:00:49. > :00:54.against globalisation, is it terminal for Tito? Also in the
:00:55. > :00:58.programme, Mark Zuckerberg and his wife have pledged $3 billion of
:00:59. > :01:03.their own wealth in an attempt to cure, prevent or manage all diseases
:01:04. > :01:08.by the end of the century. We will be talking about philanthropy and
:01:09. > :01:12.reacting to the Fed as expected Janet Yellen and her team have kept
:01:13. > :01:16.the cost of borrowing on hold, we will talk you through the market
:01:17. > :01:19.reaction around the world. And we will get the inside track on the
:01:20. > :01:23.initiative to encourage more rich business leaders to share wealth to
:01:24. > :01:27.solve some of the world problems. Intentions are good but does it make
:01:28. > :01:34.a difference or is it just good PR for those who donate? We will be
:01:35. > :01:38.finding out later. Facebook founder Mark Zuckerberg pledges $3 billion
:01:39. > :01:43.to tackle all disease by 2100, we are looking at the business of
:01:44. > :01:44.philanthropy. Can big business solve problems in the world, or is it just
:01:45. > :02:04.good PR? Send in your comments, we will
:02:05. > :02:07.mention as many as we can. As far as trade deals go, this would be a big
:02:08. > :02:10.one but it has been beset by problems since the beginning, and so
:02:11. > :02:14.European trade ministers are gathered today, to discuss the
:02:15. > :02:19.massive free trade deal with the United States, but prospects are
:02:20. > :02:22.fading fast. We are talking about the transatlantic trade and
:02:23. > :02:30.investment partnership, TTIP for short, it is facing a growing public
:02:31. > :02:35.backlash against rising political opposition on both sides of the
:02:36. > :02:39.Atlantic. Supporters of the deal say that cutting trade tariffs and
:02:40. > :02:43.regulations would bring big economic benefits, they have done the sums,
:02:44. > :02:48.they claim, for the United States, every year looking at a benefit of
:02:49. > :02:53.95 billion euros, for the European Union they argue it could boost the
:02:54. > :02:58.region by 119 billion euros a year. That translates to around 500 euros
:02:59. > :03:03.for each person in Europe. Opponents say that it gives too much power to
:03:04. > :03:07.international companies and many of them are American, they fear that it
:03:08. > :03:10.will lower European standards on issues like food and the
:03:11. > :03:16.environment, also it could threaten jobs, it could push down wages,
:03:17. > :03:21.outsourcing is a big fear. A similar deal between the UN Canada, has
:03:22. > :03:26.already been signed, it will come into force next year, if Europe's
:03:27. > :03:30.national parliaments ratify it. That is a big if. There has been
:03:31. > :03:38.the whole idea. Over to you. Robert the whole idea. Over to you. Robert
:03:39. > :03:43.Parker is with us, senior adviser of investment and strategy and research
:03:44. > :03:47.at credits wheeze. Both sides of the argument laid out there, pros and
:03:48. > :03:54.cons, critics and supporters, which side do you fall on? There are many
:03:55. > :03:59.elements to this. -- Credit Suisse. These negotiations are very
:04:00. > :04:07.compensated, against a background of very weak or mediocre growth, at
:04:08. > :04:13.best in 2017 we will get US growth close to 2%, euro zone around 1.5%.
:04:14. > :04:18.As far as a specific deal, Japanese growth is struggling to get above
:04:19. > :04:23.1%, if one says, what side of the argument I come down on, it is
:04:24. > :04:25.fairly straightforward, if this deal goes ahead, which unfortunately at
:04:26. > :04:30.the moment is looking very difficult and problematic, I think it clearly
:04:31. > :04:33.would see benefits but one has to challenge whether the numbers that
:04:34. > :04:38.Sally mentioned are exact right, there is a high degree of error. I
:04:39. > :04:43.think there would be clear benefits to the Eurozone economy and to the
:04:44. > :04:47.US. In this environment of weak growth you have touched on, it
:04:48. > :04:50.strikes me, they do not have an alternative, should they be getting
:04:51. > :04:56.this deal Duncan Watmore eight, because growth is so weak? There is
:04:57. > :05:00.a number of things to do to reboot growth in the Eurozone and the
:05:01. > :05:03.United States, this free-trade steel, this agreement, would be part
:05:04. > :05:08.of a jigsaw puzzle of a number of things to do to boost growth,
:05:09. > :05:12.obviously a change in fiscal policy would be another element of that.
:05:13. > :05:16.The political environment, both in the United States and in Europe, one
:05:17. > :05:20.has to emphasise that in Europe in 2017 we had elections in Germany,
:05:21. > :05:27.France, the Netherlands, next month a referendum in Italy. The political
:05:28. > :05:31.framework in Europe is actually very difficult to push this deal through.
:05:32. > :05:35.That political framework we have seen sparking protests, looking at
:05:36. > :05:39.pictures we have had from Brussels, people protesting against the deal,
:05:40. > :05:47.that is what is so interesting, in that arena, people have a strong
:05:48. > :05:51.opinion and on both sides people do not want to compromise. You see this
:05:52. > :05:56.also in the American presidential political debate, Linton and trump,
:05:57. > :06:00.both, particularly Donald Trump, have no interviews yet for these
:06:01. > :06:05.deals at all. The populist reaction is people are concerned about job
:06:06. > :06:09.security. They are concerned about competition from other parts of the
:06:10. > :06:13.world which might depress wages, I would argue that a lot of those
:06:14. > :06:15.concerns are not properly founded, having said that, you see
:06:16. > :06:21.demonstrations on the street, you see political opposition, as a
:06:22. > :06:25.consequence, pushing Beale steals through, getting an agreement, I do
:06:26. > :06:30.not think we will see deals being cancel completely. -- pushing these
:06:31. > :06:33.deals through. But we could be having these conversations in one
:06:34. > :06:40.year's time. And I am sure that we will. Thank you very much for coming
:06:41. > :06:43.in. Let's tell you more about what Mark Zuckerberg and his wife have
:06:44. > :06:45.been doing. Facebook's founder Mark Zuckerberg and his wife Priscilla
:06:46. > :06:49.Chan have pledged $3bn to fund medical research over the next
:06:50. > :06:51.decade. At a press conference in San Francisco, they said their ultimate
:06:52. > :06:55.goal was to "cure, prevent or manage all diseases by the end of the
:06:56. > :06:57.century". The funds will be distributed by the Chan Zuckerberg
:06:58. > :07:05.Initiative, which they created in December 2015. Here is Priscilla
:07:06. > :07:12.Chan outlining the goals of the initiative. our aim is to bring
:07:13. > :07:16.together teams of innovative scientists and engineers to bills
:07:17. > :07:22.transformational tools that unlock a new era of accelerated progress in
:07:23. > :07:27.science and health. for this initiative we will be investing more
:07:28. > :07:30.than $3 billion over the next decade to achieve our collective mission.
:07:31. > :07:37.applause i didn't realise, priscilla chan is
:07:38. > :07:42.a paediatrician. do send in your thoughts about what they are up to,
:07:43. > :07:46.and also the very public way in which they told the world about it.
:07:47. > :07:59.we will discuss this in detail later in the show.
:08:00. > :08:06.Formula 1 team McLaren has played down reports that it's received
:08:07. > :08:08.an investment bid from tech giant Apple.
:08:09. > :08:10.The Financial Times says the talks started several months ago
:08:11. > :08:13.and could see Apple pay up to ?1.5bn for McLaren.
:08:14. > :08:15.It's understood McLaren had been in talks with Apple
:08:16. > :08:18.over its rumoured Apple car, but those talks have since ended.
:08:19. > :08:25.Insurance market Lloyds of London has reported profits of almost
:08:26. > :08:28.$2 billion for the first six months of the year.
:08:29. > :08:30.That's a rise of a quarter of a billion pounds
:08:31. > :08:35.AT the same time, the firm says it's putting plans in place that
:08:36. > :08:37.will ensure it continues trading across Europe following Brexit,
:08:38. > :08:40.weeks after its chairman warned that the group could be forced
:08:41. > :08:57.to move parts of its business to the EU.
:08:58. > :09:04.We grilled her on that point, about what Brexit means for the company.
:09:05. > :09:11.Some of the details that came out of that, they are on the business page.
:09:12. > :09:15.Brexit is a major issue, says the insurer, Lloyds. The insurance
:09:16. > :09:21.market in London, accounts for 50,000 jobs. It is one fifth of the
:09:22. > :09:26.GDP growth for the City of London, quite a substantial element. It is
:09:27. > :09:29.about that. As you would expect, about that. As you would expect,
:09:30. > :09:32.much more on the life page about the news we were covering at the start
:09:33. > :09:37.of the programme, about Mark Zuckerberg's pledge to eradicate or
:09:38. > :09:42.manage disease by the year 2100. At the press conference, I did not
:09:43. > :09:46.watch it but I have seen snippets, Bill Gates was there, the Gates
:09:47. > :09:50.foundation is quite major in the world of philanthropy, he was on the
:09:51. > :09:53.stage as well to cheer on the decision to go ahead with that. --
:09:54. > :10:07.Gates Foundation. We will talk about that much later in the programme.
:10:08. > :10:09.Turning to Asia, because shares of troubled Hanjin Shipping have jumped
:10:10. > :10:12.by as much as 28% in South Korea after the board at Korean Air Lines,
:10:13. > :10:17.its biggest shareholder, approved a loan of around $54 million for the
:10:18. > :10:20.troubled shipping firm. Sharanjit Leyl is following this for us from
:10:21. > :10:27.our Singapore newsroom. Phyllis in on the latest in the long saga of
:10:28. > :10:31.Hanjin. They thought perhaps this would be resolved fairly soon, the
:10:32. > :10:37.problem is the shipping line has, you mentioned Korean airlines, major
:10:38. > :10:48.stakeholder in and Jean shipping, the funds will be abided as soon as
:10:49. > :10:53.necessary checks are conducted. -- and Jean shipping. The Korean
:10:54. > :10:54.development bank agrees to $45 million of a loan to the firm as
:10:55. > :11:04.well. -- hand Jim there is estimates from the South
:11:05. > :11:09.Korean government that have shown that the government needs at least
:11:10. > :11:12.half $1 billion to cover unpaid costs such as fuel and cargo
:11:13. > :11:17.handling. Earlier this month, the parent company, Hanjin Group, said
:11:18. > :11:24.that it would inject around $100 billion of fresh funds to resolve
:11:25. > :11:31.the problems with the cargo shop at sea -- stuck at sea. In various
:11:32. > :11:34.ports including South Korea they are working to prevent seizure. Right
:11:35. > :11:39.here in Japan and Singapore as well. Dozens of ships continue to be
:11:40. > :11:42.anchored off ports and this is causing great disruption in the
:11:43. > :11:46.industry. The whole economic downturn we have seen in recent
:11:47. > :11:57.years has really impacted profits across that cargo shipping industry.
:11:58. > :12:01.Hanjin Very much in focus. Japanese markets, closed for a public
:12:02. > :12:05.holiday, Wednesday's closed, when the Nikkei was responding to the
:12:06. > :12:08.bank of Japan news, it's too kept its interest rate on hold but
:12:09. > :12:14.introduce measures to try to boost the economy. When Japan reopens it
:12:15. > :12:19.may have a tougher time. The yen has strengthened following on from the
:12:20. > :12:23.Federal reserve decision in the US late Wednesday, Hong Kong traded
:12:24. > :12:30.today up half a percent. Nearly 8% at the close. Europe, as you can
:12:31. > :12:33.see, gains right across-the-board. I would imagine this is a reaction to
:12:34. > :12:38.the US Federal reserve, strong positive gains in Asia and the night
:12:39. > :12:42.before, tends to flow through into the European day, and we will talk
:12:43. > :12:49.about market reaction in a few minutes, but first, we can speak
:12:50. > :12:53.with Samira Hussain in New York. The Fed have held off from raising
:12:54. > :12:57.interest rates this month, it was not an easy decision, over two days,
:12:58. > :13:03.members of the committee debated, and of the ten voting members, three
:13:04. > :13:07.had voted in favour of a rate rise this month. This kind of division
:13:08. > :13:13.among members of the Federal Reserve is especially rare, as they like to
:13:14. > :13:17.present a unanimous front. The case for a rate rise has really
:13:18. > :13:20.strengthened, chair of the US Federal Reserve, Janet Yellen,
:13:21. > :13:24.really wants to see the economy doing better before making a move.
:13:25. > :13:31.The labour market is strengthening but inflation remains just a little
:13:32. > :13:33.too low to take action. Going forward, the Federal Reserve
:13:34. > :13:38.believes that the US economy will still grow but at a slightly slower
:13:39. > :13:43.pace, than they had anticipated, at the beginning of the year. The eagle
:13:44. > :13:48.eyed among you will have spotted that Samira was not in New York,
:13:49. > :13:55.contrary to what we have said, she was in Washington, she is outside
:13:56. > :13:57.the Fed. That is in Washington, DC. Joining us is Mike Amey, managing
:13:58. > :14:01.director and portfolio manager at PIMCO. No change from the fed but
:14:02. > :14:06.nonetheless, it has not stopped the speculators. Two things going on
:14:07. > :14:11.here, one is that the Fed has raised interest rates only once, they have
:14:12. > :14:16.been trying for 12, 18 months, some guidance that they are aiming to
:14:17. > :14:20.raise rates in December, which was not massive news. The reason the
:14:21. > :14:24.markets have responded well, stock markets up everywhere, it is as much
:14:25. > :14:28.about what they expect to do next year and the year after, next year
:14:29. > :14:33.they are pencilling in at the moment gots further rate hikes, down from
:14:34. > :14:37.three, the market has taken that well, it means the Fed is not going
:14:38. > :14:40.to be too aggressive on rate hikes, that supports asset prices. That is
:14:41. > :14:44.why you have seen stock market prices bounce. Janet Yellen was
:14:45. > :14:51.grilled in the press about the election, she vociferously refused
:14:52. > :14:56.to even say that it was an issue. She was specifically asked by one of
:14:57. > :14:59.the journalists in the press conference, whether the upcoming
:15:00. > :15:03.election played a part in her decision, they meet again before the
:15:04. > :15:07.US election, one week before the US election, she was very clear, as you
:15:08. > :15:14.would expect her to be, the election is not their issue and they will do
:15:15. > :15:21.what they expect is right. The yen was strengthening today. The bank of
:15:22. > :15:24.Japan met the day before, and the bank of Japan, the challenge the
:15:25. > :15:30.Japanese have, they want to get inflation up, they need to stop the
:15:31. > :15:35.yen from going up, because if it goes up, it puts pressure on
:15:36. > :15:38.domestic prices. The yen is seeing just over 100, pretty key level. The
:15:39. > :15:49.yen is really high up. Mike, thank you. Michael returned to
:15:50. > :16:06.talk us through some of the stories in the papers. We will discuss
:16:07. > :16:08.whether philanthropists investing in health stories are really making a
:16:09. > :16:11.difference, or whether it is just PR.
:16:12. > :16:38.That's a rise of a quarter of a billion pounds
:16:39. > :16:42.Our economics correspondent Andrew Walker is following the story
:16:43. > :16:45.there are some games on currency movements, the strength of the
:16:46. > :16:47.dollar has helped the business maker and improved profits. Its actual
:16:48. > :16:52.insurance underwriting business, the core of the business, sore lower
:16:53. > :16:56.profits, and that was largely due to the extent of the fires in Fort
:16:57. > :17:03.McMurray in Canada. Big pay-outs on claims there. That is very much the
:17:04. > :17:09.fundamental business. Looking ahead, what the business is quite concerned
:17:10. > :17:15.about is the impact of Brexit, the decision to leave the European
:17:16. > :17:21.Union. The chief executive has been planning for that eventuality. The
:17:22. > :17:27.Lloyds, we anticipate that by losing any licensing and losing any
:17:28. > :17:33.passport in that we have into the EU countries, that 4% of our revenues
:17:34. > :17:36.will be impacted. We have obviously got contingency plans in case the
:17:37. > :17:39.Government doesn't come up with a negotiation that suits us, and
:17:40. > :17:45.enables us to continue trading in those EU countries. So we are
:17:46. > :17:47.working on contingency plans to either work on having a subsidiary
:17:48. > :17:54.in one of those countries, or perhaps branching, but certainly 4%
:17:55. > :17:58.of our revenues are impacted, and we will no longer be able to write that
:17:59. > :18:03.business from London. That was Inge Beale, the boss, and interesting
:18:04. > :18:08.what she had to say about Brexit. It is clearly something she has been
:18:09. > :18:11.concerned about. She is emphatic that for the time being there is no
:18:12. > :18:16.change. The business continues as before. She has been very anxious to
:18:17. > :18:21.reassure clients that that remains the case, that Lloyds for the time
:18:22. > :18:25.being continues to be able to do that same insurance business on
:18:26. > :18:29.exactly the same basis as before, but there is the possibility
:18:30. > :18:33.depending on what accepted the terms of the British departure are, that
:18:34. > :18:37.it might need to organise that European aspect of the business
:18:38. > :18:41.somewhat differently, perhaps moving some operations to a limited extent
:18:42. > :18:42.to other parts of Europe. Andrew, thank you very much. Much
:18:43. > :18:46.more on the website. The US-EU trade agreement,
:18:47. > :18:56.the Transatlantic Trade and Investment Partnership,
:18:57. > :18:58.is on the verge of collapse as trade ministers meet today to try
:18:59. > :19:01.and save the project. But the prospect of an agreement
:19:02. > :19:14.on TTIP before the end of the year We have been looking at the
:19:15. > :19:19.implications. They are meeting in Bratislava, and if we hear any news,
:19:20. > :19:22.we will let you know. The markets are not fussed about that, they are
:19:23. > :19:25.reacting to what the Federal reserve didn't do and what it had to say
:19:26. > :19:30.about what it might do in the future. The bookies are betting
:19:31. > :19:33.perhaps December is the most likely month for a rate rise. We have been
:19:34. > :19:38.here before. Don't place your bets! That is what I am saying. I have a
:19:39. > :19:50.feeling we will be talking about this quite a little bit more. Now
:19:51. > :19:53.let's get the inside track on philanthropy.
:19:54. > :19:55.As we mentioned earlier, the Zuckerbergs are pledging
:19:56. > :19:58.they are giving $3 billion to try and eliminate all diseaseses
:19:59. > :20:01.This is the latest example of many high-profile business leaders
:20:02. > :20:04.who are using their wealth to fund such causes.
:20:05. > :20:06.Others include the likes of Bill Gates.
:20:07. > :20:08.Well, one hotel chain has seen the opportunity.
:20:09. > :20:11.The Six Senses hotel chain caters to travellers looking
:20:12. > :20:13.for a slice of paradise, with all the trappings
:20:14. > :20:14.of an ultra-luxe, five-star experience -
:20:15. > :20:24.but with an emphasis on philanthropy.
:20:25. > :20:27.Joining us now is Sonu Shivdasani, founder, Chairman of Board
:20:28. > :20:28.and Chief Executive Officer of the Soneva Group.
:20:29. > :20:44.Welcome. It's a pleasure being here. I founded Six Senses, but I sold
:20:45. > :20:51.that back in 2012, and I am now running Soneva. We have the Soneva
:20:52. > :20:56.Foundation. And you invite other business leaders to get together to
:20:57. > :21:01.talk about how you can spend some of your money to put the world's
:21:02. > :21:05.problems right. There are various aspect of Soneva, and the crux of it
:21:06. > :21:12.is, I believe strongly that business success comes when you can happily
:21:13. > :21:20.merge apparent contrast and make them fit in harmony. So at Soneva we
:21:21. > :21:23.offer our guests a luxury but strive to have them fit with the
:21:24. > :21:30.environment of the planet, and these things go hand in feed off each
:21:31. > :21:33.other, so to reinforce that, we created the Soneva Foundation,
:21:34. > :21:39.because I think fundamentally, companies must have a purpose beyond
:21:40. > :21:45.pleasing shareholders and paying employees' salaries, and that is
:21:46. > :21:50.essential for the 21st-century. But how can you offer luxury travel but
:21:51. > :21:55.not cover an impact on the environment? There are lots of touch
:21:56. > :22:02.points, but fundamentally, everything from, we measure all our
:22:03. > :22:06.carbon emissions, so I believe strongly that we need to make small
:22:07. > :22:10.tweaks to our business model that doesn't affect profitability. I
:22:11. > :22:15.would love to have the net worth of marks ago Berg, and it is fantastic
:22:16. > :22:24.what they are doing. The richest 85 people on the planet, according to
:22:25. > :22:29.Oxfam, have more wealth than the poorest half, will you think about
:22:30. > :22:32.Soneva at his wife, so I think what they are doing is fantastic, but I
:22:33. > :22:36.don't have the liquidity and the net worth. I believe that companies have
:22:37. > :22:41.to make small tweaks to our business model, we have to be a force for
:22:42. > :22:47.good generally. I will give you some examples, and that has funded the
:22:48. > :22:53.Soneva Foundation. We have raised less than the billions of the
:22:54. > :23:01.Zuckerbergs, it is in the millions, but we have made small tweaks. We
:23:02. > :23:05.haven't donated money, it has come from small changes. We are the only
:23:06. > :23:11.hospitality firm to measure all three scopes of carbon, Scopes one
:23:12. > :23:14.and two are very, limited, but the third is guest travel, supplier of
:23:15. > :23:20.food is coming in, and the irony is that 85% of the CO2 emissions is
:23:21. > :23:25.that, scopes three, so we measure that, and we then have a carbon
:23:26. > :23:34.levy, and that has raised $6 million, and has given people, it
:23:35. > :23:38.has funded a 1.5 megawatts windmill in India, 5000 trees in Thailand
:23:39. > :23:47.supporting local communities, and cooking stoves in Darfur. Sorry to
:23:48. > :23:55.interrupt you. How do the examples of the Mark Zuckerberg, will Gates,
:23:56. > :23:59.Warren Buffett, affect the business community? Does it encourage other
:24:00. > :24:08.business leaders to do the same? As you know, Gates and buffet have made
:24:09. > :24:12.a pledge around the world, and they have enormous wealth, given that
:24:13. > :24:16.their wealth adds up to more than half the world's population, if they
:24:17. > :24:20.spend it on philanthropy, it can have a huge impact. But coming back
:24:21. > :24:25.to the point I was making, companies need to put that into their business
:24:26. > :24:30.model. Like the mandatory carbon levy, it has had no negative impact
:24:31. > :24:36.on our profitability or the way guests perceive us, but it has
:24:37. > :24:39.supported 150,000 families. We have a world today worth 4 million people
:24:40. > :24:53.die per year of lung succeed Asian. By using firewood to heat their
:24:54. > :24:56.food. -- lung asphyxiation. David Haye is suggesting, wouldn't it be
:24:57. > :25:01.easier for companies just to pay their taxes and let governments
:25:02. > :25:06.decide how money is spent? A lot of this is ego. That is a tricky
:25:07. > :25:10.balance, how much is going back to saying, we are giving all this money
:25:11. > :25:13.away, rather than actually maybe filtering that money through the
:25:14. > :25:18.proper channels and then governments pulled aside what to do. In a
:25:19. > :25:23.country like Britain, having this debate between the effectiveness of
:25:24. > :25:27.government versus the private sector, there is no better country
:25:28. > :25:34.to do it, Margaret Thatcher's privatisation of the economy has
:25:35. > :25:39.completely revolutionised the private sector. Some people might
:25:40. > :25:43.disagree with you! The economy is thriving and the infrastructure is
:25:44. > :25:47.doing well, so it is fantastic that individuals and the private sector
:25:48. > :25:52.do give, because they will give with passion. We can tell you are
:25:53. > :25:56.extremely passionate, but we have to leave it here, I'm afraid. We have
:25:57. > :26:00.run out of time. It was a fascinating conversation. Thank you
:26:01. > :26:01.for having me. That's it from us, we will see very
:26:02. > :26:14.soon. Good morning. A lot of fine weather
:26:15. > :26:15.around for the next couple of days, but not completely dry by any