22/09/2016 BBC Business Live

Prospects are fading fast for the massive free trade deal between

Europe and the United States, EU trade ministers meet today to

discuss the future of the transatlantic trade and investment

partnership. Live from London, that is the focus today.

Unfair trade, transatlantic megadeals, face a growing backlash

against globalisation, is it terminal for Tito? Also in the

programme, Mark Zuckerberg and his wife have pledged $3 billion of

their own wealth in an attempt to cure, prevent or manage all diseases

by the end of the century. We will be talking about philanthropy and

reacting to the Fed as expected Janet Yellen and her team have kept

the cost of borrowing on hold, we will talk you through the market

reaction around the world. And we will get the inside track on the

initiative to encourage more rich business leaders to share wealth to

solve some of the world problems. Intentions are good but does it make

a difference or is it just good PR for those who donate? We will be

finding out later. Facebook founder Mark Zuckerberg pledges $3 billion

to tackle all disease by 2100, we are looking at the business of

philanthropy. Can big business solve problems in the world, or is it just

good PR? Send in your comments, we will

mention as many as we can. As far as trade deals go, this would be a big

one but it has been beset by problems since the beginning, and so

European trade ministers are gathered today, to discuss the

massive free trade deal with the United States, but prospects are

fading fast. We are talking about the transatlantic trade and

investment partnership, TTIP for short, it is facing a growing public

backlash against rising political opposition on both sides of the

Atlantic. Supporters of the deal say that cutting trade tariffs and

regulations would bring big economic benefits, they have done the sums,

they claim, for the United States, every year looking at a benefit of

95 billion euros, for the European Union they argue it could boost the

region by 119 billion euros a year. That translates to around 500 euros

for each person in Europe. Opponents say that it gives too much power to

international companies and many of them are American, they fear that it

will lower European standards on issues like food and the

environment, also it could threaten jobs, it could push down wages,

outsourcing is a big fear. A similar deal between the UN Canada, has

already been signed, it will come into force next year, if Europe's

national parliaments ratify it. That is a big if. There has been

the whole idea. Over to you. Robert the whole idea. Over to you. Robert

Parker is with us, senior adviser of investment and strategy and research

at credits wheeze. Both sides of the argument laid out there, pros and

cons, critics and supporters, which side do you fall on? There are many

elements to this. -- Credit Suisse. These negotiations are very

compensated, against a background of very weak or mediocre growth, at

best in 2017 we will get US growth close to 2%, euro zone around 1.5%.

As far as a specific deal, Japanese growth is struggling to get above

1%, if one says, what side of the argument I come down on, it is

fairly straightforward, if this deal goes ahead, which unfortunately at

the moment is looking very difficult and problematic, I think it clearly

would see benefits but one has to challenge whether the numbers that

Sally mentioned are exact right, there is a high degree of error. I

think there would be clear benefits to the Eurozone economy and to the

US. In this environment of weak growth you have touched on, it

strikes me, they do not have an alternative, should they be getting

this deal Duncan Watmore eight, because growth is so weak? There is

a number of things to do to reboot growth in the Eurozone and the

United States, this free-trade steel, this agreement, would be part

of a jigsaw puzzle of a number of things to do to boost growth,

obviously a change in fiscal policy would be another element of that.

The political environment, both in the United States and in Europe, one

has to emphasise that in Europe in 2017 we had elections in Germany,

France, the Netherlands, next month a referendum in Italy. The political

framework in Europe is actually very difficult to push this deal through.

That political framework we have seen sparking protests, looking at

pictures we have had from Brussels, people protesting against the deal,

that is what is so interesting, in that arena, people have a strong

opinion and on both sides people do not want to compromise. You see this

also in the American presidential political debate, Linton and trump,

both, particularly Donald Trump, have no interviews yet for these

deals at all. The populist reaction is people are concerned about job

security. They are concerned about competition from other parts of the

world which might depress wages, I would argue that a lot of those

concerns are not properly founded, having said that, you see

demonstrations on the street, you see political opposition, as a

consequence, pushing Beale steals through, getting an agreement, I do

not think we will see deals being cancel completely. -- pushing these

deals through. But we could be having these conversations in one

year's time. And I am sure that we will. Thank you very much for coming

in. Let's tell you more about what Mark Zuckerberg and his wife have

been doing. Facebook's founder Mark Zuckerberg and his wife Priscilla

Chan have pledged $3bn to fund medical research over the next

decade. At a press conference in San Francisco, they said their ultimate

goal was to "cure, prevent or manage all diseases by the end of the

century". The funds will be distributed by the Chan Zuckerberg

Initiative, which they created in December 2015. Here is Priscilla

Chan outlining the goals of the initiative. our aim is to bring

together teams of innovative scientists and engineers to bills

transformational tools that unlock a new era of accelerated progress in

science and health. for this initiative we will be investing more

than $3 billion over the next decade to achieve our collective mission.

applause i didn't realise, priscilla chan is

a paediatrician. do send in your thoughts about what they are up to,

and also the very public way in which they told the world about it.

we will discuss this in detail later in the show.

Formula 1 team McLaren has played down reports that it's received

an investment bid from tech giant Apple.

The Financial Times says the talks started several months ago

and could see Apple pay up to ?1.5bn for McLaren.

It's understood McLaren had been in talks with Apple

over its rumoured Apple car, but those talks have since ended.

Insurance market Lloyds of London has reported profits of almost

$2 billion for the first six months of the year.

That's a rise of a quarter of a billion pounds

AT the same time, the firm says it's putting plans in place that

will ensure it continues trading across Europe following Brexit,

weeks after its chairman warned that the group could be forced

to move parts of its business to the EU.

We grilled her on that point, about what Brexit means for the company.

Some of the details that came out of that, they are on the business page.

Brexit is a major issue, says the insurer, Lloyds. The insurance

market in London, accounts for 50,000 jobs. It is one fifth of the

GDP growth for the City of London, quite a substantial element. It is

about that. As you would expect, about that. As you would expect,

much more on the life page about the news we were covering at the start

of the programme, about Mark Zuckerberg's pledge to eradicate or

manage disease by the year 2100. At the press conference, I did not

watch it but I have seen snippets, Bill Gates was there, the Gates

foundation is quite major in the world of philanthropy, he was on the

stage as well to cheer on the decision to go ahead with that. --

Gates Foundation. We will talk about that much later in the programme.

Turning to Asia, because shares of troubled Hanjin Shipping have jumped

by as much as 28% in South Korea after the board at Korean Air Lines,

its biggest shareholder, approved a loan of around $54 million for the

troubled shipping firm. Sharanjit Leyl is following this for us from

our Singapore newsroom. Phyllis in on the latest in the long saga of

Hanjin. They thought perhaps this would be resolved fairly soon, the

problem is the shipping line has, you mentioned Korean airlines, major

stakeholder in and Jean shipping, the funds will be abided as soon as

necessary checks are conducted. -- and Jean shipping. The Korean

development bank agrees to $45 million of a loan to the firm as

well. -- hand Jim there is estimates from the South

Korean government that have shown that the government needs at least

half $1 billion to cover unpaid costs such as fuel and cargo

handling. Earlier this month, the parent company, Hanjin Group, said

that it would inject around $100 billion of fresh funds to resolve

the problems with the cargo shop at sea -- stuck at sea. In various

ports including South Korea they are working to prevent seizure. Right

here in Japan and Singapore as well. Dozens of ships continue to be

anchored off ports and this is causing great disruption in the

industry. The whole economic downturn we have seen in recent

years has really impacted profits across that cargo shipping industry.

Hanjin Very much in focus. Japanese markets, closed for a public

holiday, Wednesday's closed, when the Nikkei was responding to the

bank of Japan news, it's too kept its interest rate on hold but

introduce measures to try to boost the economy. When Japan reopens it

may have a tougher time. The yen has strengthened following on from the

Federal reserve decision in the US late Wednesday, Hong Kong traded

today up half a percent. Nearly 8% at the close. Europe, as you can

see, gains right across-the-board. I would imagine this is a reaction to

the US Federal reserve, strong positive gains in Asia and the night

before, tends to flow through into the European day, and we will talk

about market reaction in a few minutes, but first, we can speak

with Samira Hussain in New York. The Fed have held off from raising

interest rates this month, it was not an easy decision, over two days,

members of the committee debated, and of the ten voting members, three

had voted in favour of a rate rise this month. This kind of division

among members of the Federal Reserve is especially rare, as they like to

present a unanimous front. The case for a rate rise has really

strengthened, chair of the US Federal Reserve, Janet Yellen,

really wants to see the economy doing better before making a move.

The labour market is strengthening but inflation remains just a little

too low to take action. Going forward, the Federal Reserve

believes that the US economy will still grow but at a slightly slower

pace, than they had anticipated, at the beginning of the year. The eagle

eyed among you will have spotted that Samira was not in New York,

contrary to what we have said, she was in Washington, she is outside

the Fed. That is in Washington, DC. Joining us is Mike Amey, managing

director and portfolio manager at PIMCO. No change from the fed but

nonetheless, it has not stopped the speculators. Two things going on

here, one is that the Fed has raised interest rates only once, they have

been trying for 12, 18 months, some guidance that they are aiming to

raise rates in December, which was not massive news. The reason the

markets have responded well, stock markets up everywhere, it is as much

about what they expect to do next year and the year after, next year

they are pencilling in at the moment gots further rate hikes, down from

three, the market has taken that well, it means the Fed is not going

to be too aggressive on rate hikes, that supports asset prices. That is

why you have seen stock market prices bounce. Janet Yellen was

grilled in the press about the election, she vociferously refused

to even say that it was an issue. She was specifically asked by one of

the journalists in the press conference, whether the upcoming

election played a part in her decision, they meet again before the

US election, one week before the US election, she was very clear, as you

would expect her to be, the election is not their issue and they will do

what they expect is right. The yen was strengthening today. The bank of

Japan met the day before, and the bank of Japan, the challenge the

Japanese have, they want to get inflation up, they need to stop the

yen from going up, because if it goes up, it puts pressure on

domestic prices. The yen is seeing just over 100, pretty key level. The

yen is really high up. Mike, thank you. Michael returned to

talk us through some of the stories in the papers. We will discuss

whether philanthropists investing in health stories are really making a

difference, or whether it is just PR.

That's a rise of a quarter of a billion pounds

Our economics correspondent Andrew Walker is following the story

there are some games on currency movements, the strength of the

dollar has helped the business maker and improved profits. Its actual

insurance underwriting business, the core of the business, sore lower

profits, and that was largely due to the extent of the fires in Fort

McMurray in Canada. Big pay-outs on claims there. That is very much the

fundamental business. Looking ahead, what the business is quite concerned

about is the impact of Brexit, the decision to leave the European

Union. The chief executive has been planning for that eventuality. The

Lloyds, we anticipate that by losing any licensing and losing any

passport in that we have into the EU countries, that 4% of our revenues

will be impacted. We have obviously got contingency plans in case the

Government doesn't come up with a negotiation that suits us, and

enables us to continue trading in those EU countries. So we are

working on contingency plans to either work on having a subsidiary

in one of those countries, or perhaps branching, but certainly 4%

of our revenues are impacted, and we will no longer be able to write that

business from London. That was Inge Beale, the boss, and interesting

what she had to say about Brexit. It is clearly something she has been

concerned about. She is emphatic that for the time being there is no

change. The business continues as before. She has been very anxious to

reassure clients that that remains the case, that Lloyds for the time

being continues to be able to do that same insurance business on

exactly the same basis as before, but there is the possibility

depending on what accepted the terms of the British departure are, that

it might need to organise that European aspect of the business

somewhat differently, perhaps moving some operations to a limited extent

to other parts of Europe. Andrew, thank you very much. Much

more on the website. The US-EU trade agreement,

the Transatlantic Trade and Investment Partnership,

is on the verge of collapse as trade ministers meet today to try

and save the project. But the prospect of an agreement

on TTIP before the end of the year We have been looking at the

implications. They are meeting in Bratislava, and if we hear any news,

we will let you know. The markets are not fussed about that, they are

reacting to what the Federal reserve didn't do and what it had to say

about what it might do in the future. The bookies are betting

perhaps December is the most likely month for a rate rise. We have been

here before. Don't place your bets! That is what I am saying. I have a

feeling we will be talking about this quite a little bit more. Now

let's get the inside track on philanthropy.

As we mentioned earlier, the Zuckerbergs are pledging

they are giving $3 billion to try and eliminate all diseaseses

This is the latest example of many high-profile business leaders

who are using their wealth to fund such causes.

Others include the likes of Bill Gates.

Well, one hotel chain has seen the opportunity.

The Six Senses hotel chain caters to travellers looking

for a slice of paradise, with all the trappings

of an ultra-luxe, five-star experience -

but with an emphasis on philanthropy.

Joining us now is Sonu Shivdasani, founder, Chairman of Board

and Chief Executive Officer of the Soneva Group.

Welcome. It's a pleasure being here. I founded Six Senses, but I sold

that back in 2012, and I am now running Soneva. We have the Soneva

Foundation. And you invite other business leaders to get together to

talk about how you can spend some of your money to put the world's

problems right. There are various aspect of Soneva, and the crux of it

is, I believe strongly that business success comes when you can happily

merge apparent contrast and make them fit in harmony. So at Soneva we

offer our guests a luxury but strive to have them fit with the

environment of the planet, and these things go hand in feed off each

other, so to reinforce that, we created the Soneva Foundation,

because I think fundamentally, companies must have a purpose beyond

pleasing shareholders and paying employees' salaries, and that is

essential for the 21st-century. But how can you offer luxury travel but

not cover an impact on the environment? There are lots of touch

points, but fundamentally, everything from, we measure all our

carbon emissions, so I believe strongly that we need to make small

tweaks to our business model that doesn't affect profitability. I

would love to have the net worth of marks ago Berg, and it is fantastic

what they are doing. The richest 85 people on the planet, according to

Oxfam, have more wealth than the poorest half, will you think about

Soneva at his wife, so I think what they are doing is fantastic, but I

don't have the liquidity and the net worth. I believe that companies have

to make small tweaks to our business model, we have to be a force for

good generally. I will give you some examples, and that has funded the

Soneva Foundation. We have raised less than the billions of the

Zuckerbergs, it is in the millions, but we have made small tweaks. We

haven't donated money, it has come from small changes. We are the only

hospitality firm to measure all three scopes of carbon, Scopes one

and two are very, limited, but the third is guest travel, supplier of

food is coming in, and the irony is that 85% of the CO2 emissions is

that, scopes three, so we measure that, and we then have a carbon

levy, and that has raised $6 million, and has given people, it

has funded a 1.5 megawatts windmill in India, 5000 trees in Thailand

supporting local communities, and cooking stoves in Darfur. Sorry to

interrupt you. How do the examples of the Mark Zuckerberg, will Gates,

Warren Buffett, affect the business community? Does it encourage other

business leaders to do the same? As you know, Gates and buffet have made

a pledge around the world, and they have enormous wealth, given that

their wealth adds up to more than half the world's population, if they

spend it on philanthropy, it can have a huge impact. But coming back

to the point I was making, companies need to put that into their business

model. Like the mandatory carbon levy, it has had no negative impact

on our profitability or the way guests perceive us, but it has

supported 150,000 families. We have a world today worth 4 million people

die per year of lung succeed Asian. By using firewood to heat their

food. -- lung asphyxiation. David Haye is suggesting, wouldn't it be

easier for companies just to pay their taxes and let governments

decide how money is spent? A lot of this is ego. That is a tricky

balance, how much is going back to saying, we are giving all this money

away, rather than actually maybe filtering that money through the

proper channels and then governments pulled aside what to do. In a

country like Britain, having this debate between the effectiveness of

government versus the private sector, there is no better country

to do it, Margaret Thatcher's privatisation of the economy has

completely revolutionised the private sector. Some people might

disagree with you! The economy is thriving and the infrastructure is

doing well, so it is fantastic that individuals and the private sector

do give, because they will give with passion. We can tell you are

extremely passionate, but we have to leave it here, I'm afraid. We have

run out of time. It was a fascinating conversation. Thank you

for having me. That's it from us, we will see very

soon. Good morning. A lot of fine weather

around for the next couple of days, but not completely dry by any