:00:00. > :00:00.This is Business Live from BBC News with Rachel Horne
:00:00. > :00:09.The leader of the world's biggest economy gets ready
:00:10. > :00:14.What will the world make of the Obama legacy?
:00:15. > :00:33.Live from London, that's our top story on Tuesday 10th January.
:00:34. > :00:37.The US economy has grown, but wage growth has lagged behind.
:00:38. > :00:40.We'll assess the impact of the Obama Presidency.
:00:41. > :00:44.We also have news from the world's second-biggest economy.
:00:45. > :00:47.The goods it makes might be about to get more expensive.
:00:48. > :01:01.Stay tuned to find out what that could mean for you.
:01:02. > :01:03.The Ftse chalked up its tenth straight daily session
:01:04. > :01:07.Are you taking a break from the booze after the excesses
:01:08. > :01:10.We'll meet one man who hopes to turn abstinence into
:01:11. > :01:18.But can non-alcoholic drinks really take over from the real thing?
:01:19. > :01:22.During yesterday's metro strike in London, Uber prices
:01:23. > :01:27.Are companies right to reflect increased demand?
:01:28. > :01:33.Or do price hikes leave you feeling ripped off?
:01:34. > :01:50.There are just a couple of weeks of Barack Obama's Presidency
:01:51. > :01:56.remaining, and later today he gives his big farewell speech.
:01:57. > :01:58.As well as being commander in chief he's also overseen
:01:59. > :02:01.the world's biggest economy for the last eight years.
:02:02. > :02:08.Well, since his inauguration in January 2009 more than 11 million
:02:09. > :02:11.jobs have been added, with the unemployment rate
:02:12. > :02:20.It peaked at 10.0% in Obama's first year in power.
:02:21. > :02:26.The typical American family brings home nearly $54,000 a year.
:02:27. > :02:28.That's almost exactly the same as 20 years ago,
:02:29. > :02:33.Wage growth has been very low under Obama,
:02:34. > :02:36.and has been called the "missing piece" of the recovery.
:02:37. > :02:40.The economy has grown about 1.5% a year over
:02:41. > :02:48.That compares to about 2% under his predecessor George W Bush.
:02:49. > :02:50.One of the costs of that has been that US Government
:02:51. > :02:55.debt has nearly doubled, from $10 trillion to $20 trillion,
:02:56. > :03:01.during Obama's eight years in the Oval Office.
:03:02. > :03:04.Marianne Schneider-Petsinger, US geo-economics fellow
:03:05. > :03:14.at Chatham House, a think tank in London.
:03:15. > :03:27.If you ask any president, you would not want to take on that economy. If
:03:28. > :03:31.you were a teacher, you had to grade him on his economic, what grade
:03:32. > :03:36.would you give him? Overall, let's not forget where he started. When
:03:37. > :03:40.you talk about the economy, it was on the brink of depression. He
:03:41. > :03:47.averted that, it was just a recession. Compared to when he took
:03:48. > :03:51.it over, he has done a solid job, but it was not anything spectacular.
:03:52. > :04:00.If you compare him to other presidents, he falls in the middle
:04:01. > :04:03.range. Some may suggest it did not fall into depression because they
:04:04. > :04:11.threw a lot of money at it. They pumped a lot of money in. Some say
:04:12. > :04:18.not enough, though. I did not catch the wage growth. It is the missing
:04:19. > :04:26.link. You have created these jobs, they lost a lot but they created
:04:27. > :04:35.some. Why hasn't wage growth gone up? Many of the jobs that were
:04:36. > :04:38.created were in low-wage sectors. There is pressure from overseas and
:04:39. > :04:44.from technological change, automation is a key worry or stop
:04:45. > :04:47.many of these jobs had that have been created are part-time. Many
:04:48. > :04:52.people feel they are not making headway. There are a number of
:04:53. > :04:58.issues that go together. How do you think Barack Obama will be feeling?
:04:59. > :05:03.There are a lot of big issues, like his health care or trade deals,
:05:04. > :05:11.which may not be lasting. How will he look at this? He hopes that with
:05:12. > :05:19.some Democrats still in support of the things he has done, they will be
:05:20. > :05:26.attempts by the Donald Trump administration to overturn them, to
:05:27. > :05:34.chisel them down, but we will see, it is an open question. We have
:05:35. > :05:39.spoken before, looking forward, Donald Trump and his economic
:05:40. > :05:46.policies, there is a lot that people would look favourably on. Animal
:05:47. > :05:51.spirit is back. In terms of the promised tax cuts and cutting down
:05:52. > :05:57.on regulation. Businesses react favourably to that. They question
:05:58. > :06:00.whether he can deliver on many of those promises.
:06:01. > :06:03.Two prototype models of a highly-anticipated gaming
:06:04. > :06:05.laptop have been stolen at the Consumer Electronics
:06:06. > :06:09.They belong to the gaming company Razer, and each
:06:10. > :06:13.It's the first portable laptop of its kind.
:06:14. > :06:16.Razer said the devices were taken from its press room on Sunday,
:06:17. > :06:19.and the Chief Executive Min-Liang Tan said they were treating the case
:06:20. > :06:26.Volkswagen's chief executive for the North America region says
:06:27. > :06:29.the company was "surprised" by the criminal charges laid
:06:30. > :06:31.against the executive in charge of complying
:06:32. > :06:37.The German carmaker has admitted installing secret software
:06:38. > :06:44.On Monday Oliver Schmidt appeared in court in Miami charged with fraud
:06:45. > :06:51.He chose not to enter a plea and was remanded in custody.
:06:52. > :06:53.There are question marks about the future of Yahoo's
:06:54. > :06:55.influential chief executive Marissa Mayer after it was revealed
:06:56. > :06:59.she will not serve on the board of the company that is left behind
:07:00. > :07:03.once Yahoo's core assets are sold to Verizon.
:07:04. > :07:17.Five other directors will also not serve on the board.
:07:18. > :07:27.We are looking at our web a cracking site. We will work with our UK
:07:28. > :07:34.audience later, but Snapchat, or the company Snap, which owns it, they
:07:35. > :07:38.are choosing the UK for anything outside the US.
:07:39. > :07:42.It is a vote of confidence in the UK. If those companies come to
:07:43. > :07:48.Europe, they go for Ireland. Says the Irish lady! Luxembourg, the
:07:49. > :07:53.Netherlands. Could this be something to do with
:07:54. > :07:58.the fine that Apple could be facing, 13 billion tax rebate?
:07:59. > :08:03.It could be. Snapchat expected to go to the market this year.
:08:04. > :08:07.A big float. It hopes to raise $25 billion.
:08:08. > :08:10.We've had some numbers out of China which show that the world's
:08:11. > :08:12.second-biggest economy could be about to push up the prices
:08:13. > :08:15.of the things we around the world all buy from China.
:08:16. > :08:24.Sharanjit Leyl is in Singapore and she's got the figures.
:08:25. > :08:29.Just explain, how could these increases in China affect us as
:08:30. > :08:35.buyers elsewhere in the world? Will it cause our prices to go up?
:08:36. > :08:39.Possibly. Let me give you those figures, because they are
:08:40. > :08:46.interesting. They grew at their fastest pace in more than five
:08:47. > :08:55.years. The index for December was up 5.5% from the previous year, against
:08:56. > :08:58.expectations of. That could lead China to export inflation two
:08:59. > :09:04.nations around the world through its vast supply chains. This may prompt
:09:05. > :09:08.manufacturers who are enduring those higher input costs to raise their
:09:09. > :09:14.prices and pass them on to everyone around the world. Whether that
:09:15. > :09:20.rebound will be sustained depends on how the global economy fares,
:09:21. > :09:24.possibly under Donald Trump, and whether trade tensions flare between
:09:25. > :09:31.the US and China. Consumer prices remain stable, rising just over 2%.
:09:32. > :09:36.Others say that is an indicator that the real inflation seems restricted
:09:37. > :09:41.to the industrial sector. Hard-hit is the mining sector, prices surged
:09:42. > :09:46.over 21% in December from a year earlier.
:09:47. > :09:50.The US dollar started 2017 at a high but it's been sliding,
:09:51. > :09:58.along with the Dow on Wall Street, which closed down yesterday.
:09:59. > :10:00.And Asian stocks were mixed, with a decline in Japan.
:10:01. > :10:07.The Nikkei pretty flat, offsetting gains in Hong Kong,
:10:08. > :10:13.This week we should keep an eye on the oil price.
:10:14. > :10:15.It crept back up today after a fall on Monday over concerns
:10:16. > :10:19.about whether output cuts by major exporters will be enough to support
:10:20. > :10:26.the oil market as other producers have increased supplies.
:10:27. > :10:28.And Samira Hussain has the details about what's ahead
:10:29. > :10:40.More automotive news happening, General Motors will be telling
:10:41. > :10:45.investors what they can expect from the number one American auto-maker
:10:46. > :10:49.in 2017. Top officials will present the company's financial outlook at a
:10:50. > :10:56.butcher bank conference in Detroit. It is held at the same time as the
:10:57. > :11:01.Detroit auto show. Also happening, the Ford motor company CEO will
:11:02. > :11:05.outline forecasts for 2017 financial performance at a conference during
:11:06. > :11:10.the Detroit auto show. Investors will be watching for news on 2017
:11:11. > :11:17.American market forecasts, as well as the outlook for Asia and Europe.
:11:18. > :11:18.And Barack Obama will deliver his farewell address in his home city of
:11:19. > :11:21.Chicago. Joining us is James Bevan,
:11:22. > :11:35.chief investment officer at CCLA We want to talk about the American
:11:36. > :11:39.market. But let's talk about the FTSE 100, the main market in London.
:11:40. > :11:43.One record after another, but this is a story about the pound. The
:11:44. > :11:49.pound goes down in value, the FTSE goes up. A very large chunk of the
:11:50. > :11:52.earnings are overseas, either through export all through selling
:11:53. > :12:01.overseas, and bringing the earnings back. Whenever the pound goes down,
:12:02. > :12:11.profits go up, and vice versa. More bang for the buck. The American
:12:12. > :12:16.markets, all eyes are on January the 21st, the President-elect takes
:12:17. > :12:20.over. In the UK we have the weakness of the pound, in the US we have a
:12:21. > :12:23.strong dollar, and many people think, if you are going to talk
:12:24. > :12:28.about markets going up on the weakness of the pound, white is it
:12:29. > :12:31.that American equities have gone up with a strong dollar. Donald Trump
:12:32. > :12:36.is promising to cut tax substantially. Corporate earnings
:12:37. > :12:40.will rise because the Government will take less money. If you join
:12:41. > :12:43.and you should be tax cuts passed and you should be tax cuts passed
:12:44. > :12:50.straight through to the bottom line is terms of earnings, the index goes
:12:51. > :12:54.all the way. It is an overly optimistic perspective, but if you
:12:55. > :12:58.said, let's cut the difference between some deflation of the
:12:59. > :13:02.optimism and a revaluation on the back of that earnings numbers, maybe
:13:03. > :13:07.2500. Looking at how the markets have gone up in the States, a lot of
:13:08. > :13:10.it is on sentiment, we now know Donald Trump will be the president,
:13:11. > :13:15.and he will invest in infrastructure and cut down on regulation and
:13:16. > :13:20.taxes. Once he is in power and things either do or don't begin to
:13:21. > :13:26.happen, at one point -- at what point will be see a reality check?
:13:27. > :13:30.Have at least six months, because he will have to take the tax cuts right
:13:31. > :13:34.through the process, and we don't know if you will backdate them to
:13:35. > :13:44.early 2017 awful the date them to 2018. But the markets would begin to
:13:45. > :13:47.focus anyway forwards. All of the sentiment we have had for the global
:13:48. > :13:51.economy has been good, that has to remain in place, because it fits
:13:52. > :13:57.begin to slide back down the hill, no matter of cutting taxes will lead
:13:58. > :14:02.to better numbers. The US equity market is looking for 5% growth this
:14:03. > :14:03.year and next year, and that is what we have to focus on. We will see you
:14:04. > :14:05.shortly. We're all getting a lot more health
:14:06. > :14:07.conscious these days, but can non-alcoholic drinks really
:14:08. > :14:10.take the place of booze? We'll hear from a man who's hoping
:14:11. > :14:13.to capitalise on the trend You're with Business
:14:14. > :14:22.Live from BBC News. Snap, the company behind
:14:23. > :14:24.messaging app Snapchat, is setting up its international HQ
:14:25. > :14:28.in Britain, where it will book Many tech firms have
:14:29. > :14:36.preferred Ireland, Luxembourg or the Netherlands
:14:37. > :14:45.as their European tax base. Theo Leggett is in our
:14:46. > :14:55.business newsroom. Snapchat, why this decision, it
:14:56. > :15:00.bodes well for the UK economy and for London? A lot of social media
:15:01. > :15:04.companies like Facebook and Google have run into trouble over setting
:15:05. > :15:08.up tax bases in lower tax jurisdictions in Europe and then
:15:09. > :15:12.diverting profits from other large markets into those jurisdictions in
:15:13. > :15:16.order to minimise their tax bills. So schnapping is not doing that.
:15:17. > :15:19.They are setting up in the UK and they're channelling the profits from
:15:20. > :15:23.the UK first of all, but also from other countries where they don't
:15:24. > :15:26.have a major base and that includes Australia and Saudi Arabia and
:15:27. > :15:29.paying tax on them in the UK. Now, that tax bill at the moment won't
:15:30. > :15:33.actually be very high because Snapchat's revenues are not that
:15:34. > :15:37.high at the moment, but it is expanding rapidly. It is taking on
:15:38. > :15:41.more advertising and it is expecting its revenues to go up in the near
:15:42. > :15:43.future so there will be more money coming in and the money will be
:15:44. > :15:48.going through the UK. Let's not forget. The UK itself as a major
:15:49. > :15:56.economy has a low corporation tax rate. 20% at moment. It will fall to
:15:57. > :16:00.17% by 2020. So by doing this, schnapp is avoiding the prospect of
:16:01. > :16:03.big regulatory problems, like like the UK Government and the European
:16:04. > :16:07.Commission clamping down on companies which have aggressive tax
:16:08. > :16:11.policies and at the same time, it's basing itself in the UK where it has
:16:12. > :16:15.a relatively low corporation tax rate. So I think that's what's
:16:16. > :16:20.behind it. By the way, some of our viewers may not be familiar with
:16:21. > :16:24.Snapchat, it is an app aim at younger people. If you're under 25,
:16:25. > :16:30.you almost certainly will have heard of it. If you're over 30, maybe you
:16:31. > :16:35.won't, but that's changing as well. Snapchat allows you to take pictures
:16:36. > :16:40.and videos and send them and then have them deleted. It is becoming
:16:41. > :16:47.more popular among people the same age as myself and dare I say it, you
:16:48. > :16:57.too, Aaron. I'm older than you Theo! Thanks, mate.
:16:58. > :17:00.Morrison, Christmas sales up. They are doing well, aren't they? Good
:17:01. > :17:04.news for Britain's fourth biggest supermarket.
:17:05. > :17:07.Our top story, President Obama is getting ready to make
:17:08. > :17:10.He's expected to focus on his economic legacy especially
:17:11. > :17:14.A quick look at how markets are faring.
:17:15. > :17:21.We can see there the FTSE continuing that winning streak up and up,
:17:22. > :17:28.pretty much every day since the start of the year. It is up almost
:17:29. > :17:34.0.2%. The DAX up and the CAC down slightly. All the markets keeping an
:17:35. > :17:37.eye on the oil price which had its biggest fall in six weeks over
:17:38. > :17:43.concerns that some producers are making too much oil despite the Opec
:17:44. > :17:48.agreement. You do like the markets! Let's talk
:17:49. > :17:51.about something more interesting before I spit on the desk!
:17:52. > :17:54.Now let's get the inside track on distilling and I don't
:17:55. > :17:58.Herb and plant distillates have long been a medicinal tradition
:17:59. > :18:01.in the east but when Ben Branson, a British tee-total marketing
:18:02. > :18:03.executive stumbled across a copy of The Art of Distillation.
:18:04. > :18:09.A solution to the problem of what to drink when you don't want to drink.
:18:10. > :18:11.So inspired by craft techniques he set up soft drink
:18:12. > :18:15.Since then Seedlip has gained investment from drinks giant Diageo
:18:16. > :18:21.who seem to be betting on the rise of this adult market.
:18:22. > :18:22.The founder and chief executive of Seedlip,
:18:23. > :18:33.Guess what, he brought us? Nonalcoholic drinks! Sorry, I'm
:18:34. > :18:38.probably not your target market here. Welcome to the programme. Are
:18:39. > :18:45.you serious from a book? I know you've got the book, right? From a
:18:46. > :18:51.book. Ladies and gentlemen, this book is 1664? The original copy was
:18:52. > :18:57.1651. We managed to get our hands on a copy from 1664. This is original
:18:58. > :19:00.recipes, nonalcoholic herbal remedies all the distilling
:19:01. > :19:04.techniques that I found three years ago. So what prompted you? Was this
:19:05. > :19:07.something you were thinking I want a business opportunity, I can see a
:19:08. > :19:11.gap in this market? Was it that you were doing something else that
:19:12. > :19:17.brought you into making nonalcoholic beverages? It was not a business
:19:18. > :19:23.gap, business opportunity. Seedlip is just a product of my upbringing.
:19:24. > :19:26.Halfify family have been farming for over 300 years and we still farm
:19:27. > :19:30.today and that's really important. The other half of my company are in
:19:31. > :19:34.brand design. I grew up in the countryside and then went to work in
:19:35. > :19:39.brand design and I put the two together. You have an unusual, did
:19:40. > :19:43.you go to university? No. No. You did work experience for a big vodka
:19:44. > :19:46.company at the age of 14? I was doing work experience for brand
:19:47. > :19:52.design agencies from the age of 14 and got to work on some fantastic
:19:53. > :19:56.global brands. And so got a real insight into what it means to create
:19:57. > :20:00.one. I imagine the biggest booze maker in the world, Diageo,
:20:01. > :20:04.investing in you, which is kind of strange, but it sort of suggests
:20:05. > :20:08.this is a growing market? I think we're now in an age... Who are you
:20:09. > :20:12.targeting? We are in an age where you can go to a restaurant and have
:20:13. > :20:17.all kinds of food, it doesn't matter what allergy you have got and it
:20:18. > :20:21.doesn't matter what you want from wherever in the world, if you want
:20:22. > :20:26.an nonalcoholic cocktail, you can do the same. If you're not drinking for
:20:27. > :20:30.whatever reason, the options are poor, they are one dimensional and
:20:31. > :20:34.sweet and fruity and there is no theatre, there is no adult
:20:35. > :20:43.sophisticated flavour that we're trying to do. You know, I like a
:20:44. > :20:48.drink. My wife will nod to that. I haven't even tasted this. We've
:20:49. > :20:57.mixed it with tonic water. They are both mixed with tonic. We have got
:20:58. > :21:02.two products. Isn't the problem, it is not a problem, the issue, you
:21:03. > :21:07.were saying, you wanted other options? I have got three children,
:21:08. > :21:11.every time I was pregnant the offers of what you wanted to drink were
:21:12. > :21:14.limited. So I can see the appeal of an item like this, but your price
:21:15. > :21:21.bracket, it is ?27 a bottle. That's expensive. 40 bucks, that's $40 of
:21:22. > :21:26.the that's pricey. It is pricey. Because it takes us a long time to
:21:27. > :21:29.make. So we're individually distilling each individual
:21:30. > :21:34.ingredient. Two of the ingredients come from my farm, my hay, my hand
:21:35. > :21:39.picked peas, the craft that goes into this and the actual time and
:21:40. > :21:44.hand labour means that actually we're creating something that's
:21:45. > :21:48.really grown-up. Here is my point. For a drinker like me, is it all
:21:49. > :21:57.about the taste? It might be, but you don't get the buzz? You don't
:21:58. > :22:02.get the feeling. I'm not talking about pregnant. If it is a Monday
:22:03. > :22:07.lunch time or you're driving or as we are in dry January and you're
:22:08. > :22:10.having a month off, the opportunity to have a great grown-up
:22:11. > :22:13.nonalcoholic drink should still be there regardless of drinking for the
:22:14. > :22:18.effect. I think the effect of wanting to feel part of the group or
:22:19. > :22:21.wanting to feel like you're not the dummy in the corner drinking orange
:22:22. > :22:28.juice. This product, that's filling this gap in the market for adult
:22:29. > :22:33.drinks. There are a lot of other companies rushing in, Britvic have a
:22:34. > :22:37.company launching a similar sort of, more savoury alcoholic alternative
:22:38. > :22:40.rather than the fruity ones. We have nonalcoholic wines being introduced
:22:41. > :22:45.by one of the upmarket cordial companies. Is there room for you as
:22:46. > :22:49.well? We are the world's first distilled nonalcoholic spirits. So
:22:50. > :22:54.we are taking the same rituals of a spirit mixer of a vodka and Coke and
:22:55. > :22:58.of a gin and tonic that sits on the back bar that means you can make
:22:59. > :23:05.something at home so we're taking that side of the market. I guess we
:23:06. > :23:08.want to solve the problem of not drinking. If other people are coming
:23:09. > :23:13.in and helping to build that owication, happy days. Ben Branson,
:23:14. > :23:17.thank you. You can come back and see me when you've put some alcohol in
:23:18. > :23:23.that one and we'll talk them. I'm not your target market, I'm sorry!
:23:24. > :23:26.In a moment we'll take a look through the Business Pages but first
:23:27. > :23:29.here's a quick reminder of how to get in touch with us.
:23:30. > :23:32.The Business Live page is where you can stay ahead with the day's
:23:33. > :23:38.breaking business news. We will keep you up-to-date with the latest
:23:39. > :23:43.analysis from the BBC's team of editors around the world. We want to
:23:44. > :23:47.hear from you too. Get involved on the Business Live web page. On
:23:48. > :23:53.Twitter we're at: You can find us on Facebook:
:23:54. > :23:58.Business Live on TV and online whenever you need to know.
:23:59. > :24:00.What other business stories has the media been
:24:01. > :24:03.James Bevan from CCLA Investment Management joins us again.
:24:04. > :24:11.James, thank you for hanging around. Now, earlier we asked people to send
:24:12. > :24:16.in any tweets they might have. We were asking about the Uber story,
:24:17. > :24:21.there was a Tube strike in London and some Uber charges went up by
:24:22. > :24:26.500%! Was that supply and demand? Is that fine? Is it OK to cash in? It
:24:27. > :24:32.is the core part of the Uber business model. Uber pays by the
:24:33. > :24:37.mile and the time spent behind the wheel and there is a loading factor
:24:38. > :24:40.to get people to join the ranks of the drivers when demand rises. When
:24:41. > :24:44.there is a strike in public transport, demand goes through the
:24:45. > :24:48.roof and hence the loading goes up hugely. Some tweets have said,
:24:49. > :24:53."Look, they are really cheap norm times. This is their opportunity to
:24:54. > :25:00.cash in." There is a legitimate problem when
:25:01. > :25:05.there was too much traffic and you hope you're going to get a fast ride
:25:06. > :25:12.and you don't. The road system is not good at coping with huge
:25:13. > :25:18.volumes. It is not an Uber problem. Another company that is weighing
:25:19. > :25:22.what is it going to do with president trump's dislike for cars
:25:23. > :25:26.made in Mexico and sold in the US? It is made in Mexico and sold in the
:25:27. > :25:31.USment there are successful car companies like Nissan and VW and BMW
:25:32. > :25:36.that manufacture in Mexico and sell around the world, not specifically
:25:37. > :25:43.to the United States. However, Ford and GM have definitely decided in
:25:44. > :25:46.the past that they would want to manufacture cheaply in Mexico and
:25:47. > :25:49.export to the US and they will have to re-think their strategy. James
:25:50. > :25:52.Bevan, thank you very much for joining us today.
:25:53. > :25:55.Thank you for the tweets. We're running out of time to mention them,
:25:56. > :25:59.but a lot of people saying focus on the taxis as well, not just Uber. I
:26:00. > :26:13.will. Bye-bye. Hello. It looks as if it will be a
:26:14. > :26:16.fairly cloudy day for many parts of the British Isles and there is a
:26:17. > :26:20.chance of rain on a weak weather front for many areas too. But it is
:26:21. > :26:21.not all doom and gloom. There