:00:00. > :00:07.This is Business Live from BBC News with Sally Bundock
:00:08. > :00:15.Donald Trump gets ready to tell us how he intends
:00:16. > :00:18.to separate his business interests from affairs of state,
:00:19. > :00:21.but can he really avoid conflicts of interest?
:00:22. > :00:38.Live from London, that's our top story on Wednesday, 11th January.
:00:39. > :00:39.The billionaire has business interests around globe.
:00:40. > :00:42.He'll try to reassure the world that they won't
:00:43. > :00:52.We will talk you through what's at stake.
:00:53. > :00:54.Also in the programme, the heir to the Samsung empire
:00:55. > :00:56.faces questioning over South Korea's
:00:57. > :01:03.We'll be live in Seoul for the latest.
:01:04. > :01:08.Markets in Europe look like this. All down just a touch, but let's not
:01:09. > :01:11.forget, they have been going up and up for days it would seem. We will
:01:12. > :01:13.talk you through the winners and the losers.
:01:14. > :01:16.We'll meet the man who bought a failing factory and turned
:01:17. > :01:21.into a thriving business feeding babies around the world.
:01:22. > :01:23.Plus a new device has been launched to muzzle noisy phone
:01:24. > :01:49.It is called a Hushmie and it can't be used by presenters I'm told!
:01:50. > :01:52.In the last few hours we've heard President Obama's farewell speech
:01:53. > :01:59.with just over a week left in charge of the world's biggest economy.
:02:00. > :02:01.Today his successor Donald Trump will give a long
:02:02. > :02:03.awaited press conference, his first since winning
:02:04. > :02:07.There are still questions about how he will separate himself
:02:08. > :02:12.In his latest disclosure the president-elect revealed
:02:13. > :02:19.These have had dealings in least 25 countries in Asia, Europe, Africa,
:02:20. > :02:26.Democratic Party politicians are amongst those to express
:02:27. > :02:28.concerns this could influence his policies towards some
:02:29. > :02:38.He derives much of his income from developing real estate
:02:39. > :02:41.and also operating golf courses in the US, Britain, Ireland
:02:42. > :02:49.But he also makes money from licensing the Trump name to property
:02:50. > :02:52.Some of those projects have been engulfed in controversy.
:02:53. > :02:55.However, it should be noted that as president he is legally allowed
:02:56. > :03:00.But previous presidents have put their businesses into blind
:03:01. > :03:02.trusts to prevent conflict of interests or the
:03:03. > :03:15.With me is Stephanie Hare, independent political risk analyst.
:03:16. > :03:22.This is all about trust. It has been such a divisive election campaign.
:03:23. > :03:26.What he says and what he does now is going to be crucial, isn't it, in
:03:27. > :03:30.regaining the trust of half the US population? Exactly. This is a
:03:31. > :03:35.question about perception. So, as we just heard, he is legally allowed to
:03:36. > :03:39.run those businesses. However, he is already looking likely to run foul
:03:40. > :03:45.of a clause which is part of the US Constitution. Something like his
:03:46. > :03:49.Trump International Hotel in Washington DC, he's going to be in
:03:50. > :03:52.violation of the lease terms on that which says he can't as an elected
:03:53. > :03:58.official hold the lease on that hotel. If he doesn't divest himself
:03:59. > :04:02.of his assets by 20th January, which looks highly unlikely unless we get
:04:03. > :04:08.a surprise announcement today, he will be in a position where it could
:04:09. > :04:12.look as though he might be able to manipulated or influenced or could
:04:13. > :04:17.himself seek to manipulate or influence based on his global
:04:18. > :04:21.holdings. And if he puts members of his family in key positions, that's
:04:22. > :04:24.going to have a big implication as well, isn't it? They too will have
:04:25. > :04:30.to show that they have divested to show that they have divested
:04:31. > :04:35.their interests? The purpose of a blind trust is that he would sell
:04:36. > :04:38.his assets and hand over the money to an independent administrator who
:04:39. > :04:42.runs that fund for the time that he is president. He would have no idea
:04:43. > :04:46.what's in the fund. That's not what we're seeing. We're seeing that he
:04:47. > :04:51.is proposing his two adult sons run the Trump organisation. Now, he
:04:52. > :04:55.knows what's still in his investment portfolio. Everyone knows what's in
:04:56. > :04:58.his investment portfolio in terms of what is public and he is going to be
:04:59. > :05:03.having a relationship with his two sons. The potential for conflict of
:05:04. > :05:09.interest there is very high. We have got Rex Tillerson who said he's
:05:10. > :05:13.going to sell off his share options and interests in Exxon mobile. He
:05:14. > :05:18.was CEO. Is that enough in regaining trust? That's easier. It is easier
:05:19. > :05:22.to sell shares than it is real estate. Everybody knows that there
:05:23. > :05:26.is the properties. They know who is the owner. There is few people who
:05:27. > :05:32.can afford to buy the properties whereas shares are easier. Rex
:05:33. > :05:34.Tillerson's divestment process is more straightforward than the
:05:35. > :05:40.president-elect faces. Stephanie, thank you.
:05:41. > :05:43.When the conference starts, we will be across it here on the BBC.
:05:44. > :05:46.Volkswagen's management and supervisory board are expected
:05:47. > :05:49.to meet later on Wednesday to sign off an agreement with the US
:05:50. > :05:53.A draft settlement has been reached for a $4.3 billion fine
:05:54. > :05:56.which would draw a line under the emissions cheating scandal.
:05:57. > :05:58.The German car-maker also said it would plead guilty
:05:59. > :06:06.The company has admitted cheating test on its vehicles
:06:07. > :06:08.and already agreed $15 billion in other settlements.
:06:09. > :06:11.Prosecutors in the United States have charged three UK based former
:06:12. > :06:14.currency traders with trying to rig foreign exchange rates.
:06:15. > :06:19.They worked at JP Morgan, Citigroup and Barclays.
:06:20. > :06:21.In 2015 the three banks as well as RBS paid $2.5 billion
:06:22. > :06:24.in fines after pleading guilty to conspiring to rig
:06:25. > :06:30.Lawyers for each of the three have denied they did anything wrong.
:06:31. > :06:33.The UK authorities decided not to bring any charges after looking
:06:34. > :06:41.The Turkish lira has hit new lows against the US dollar.
:06:42. > :06:48.During Asia's morning trade it fell another 0.5% to reach
:06:49. > :06:51.It's one of the worst performing currencies in the world
:06:52. > :06:54.The economy has suffered because of continuing conflicts
:06:55. > :06:56.with Kurdish militants and so-called Islamic State.
:06:57. > :06:58.On Tuesday Turkey's central bank took action to try
:06:59. > :07:20.Some breaking news on our BBC Live page. There is a story about food.
:07:21. > :07:24.The UK company Whitbread apologised over its beef lasagne. Apparently
:07:25. > :07:28.there were reports that its beef lasagne included pork which some
:07:29. > :07:34.people don't eat for religious reasons. Whitbread said some menus
:07:35. > :07:41.had not been properly updated. It issued an apology for that. It is a
:07:42. > :07:45.big player in the UK. It has many outlet including brewers fair and
:07:46. > :07:49.Costa Coffee chain. It is quite an interesting story.
:07:50. > :07:52.Prosecutors in South Korea have said in the last couple of hours that
:07:53. > :07:55.Lee Jae-Yong who is the de facto head of the Samsung is now
:07:56. > :07:58.a criminal suspect in the corruption inquiry that has already led
:07:59. > :07:59.to the impeachment of the country's president.
:08:00. > :08:13.Steve is in the South Korean capital. Steve, tell us more, this
:08:14. > :08:17.is pretty major in terms of the developments on this story. The
:08:18. > :08:22.allegation is that Samsung paid $18 million to a fund in Germany
:08:23. > :08:28.controlled by the best friend of the president of this country. And the
:08:29. > :08:33.allegation is being investigated that in return Samsung got the votes
:08:34. > :08:41.of the national pension fund for a big restructuring of the company. In
:08:42. > :08:46.2015, the ruling family wanted to merge two bits of Samsung. Outside
:08:47. > :08:50.shareholders said that's only so you can strengthen your hold on the
:08:51. > :08:55.company. It is not in the interests of the shareholders. But so the
:08:56. > :09:00.allegation goes. The national pension fund put its votes behind
:09:01. > :09:06.the family. The prosecutor now thinks that that maybe because it
:09:07. > :09:15.had given money to the friend of the president in the first place so.
:09:16. > :09:24.That's the allegation. The herir to the company and his father has been
:09:25. > :09:27.told to appear at the prosecutors office at 9.30am on Thursday
:09:28. > :09:33.morning. So it is a very serious turn of events and potentially very
:09:34. > :09:37.damaging for the company. All right, at the end of what's been a very
:09:38. > :09:42.damaging time for them. We'll talk to Steve on Thursday, I'm sure, as
:09:43. > :09:49.that unfolds. In Asia they had a good day. Japan
:09:50. > :09:56.and Hong Kong up. Let's look and see how Europe is faring. We've got VW
:09:57. > :10:02.shares up in Frankfurt. It is a big day for Volkswagen. In
:10:03. > :10:06.dominating. Lots of news coming from dominating. Lots of news coming from
:10:07. > :10:12.the big retailers in the UK about how they fared over Christmas.
:10:13. > :10:17.Sainsbury's shares up 3% and Morrisons shares up 4%. We'll talk
:10:18. > :10:19.about that in detail in a moment. That's a dominating story this week
:10:20. > :10:26.for the UK retail. Lots happening in the US. We've mentioned Donald
:10:27. > :10:32.Trump's press conference. Let's hear some more from Michelle on what Wall
:10:33. > :10:35.Street is watching. As well as Donald Trump's press conference
:10:36. > :10:42.where he is expected to discuss the future of his businesses, the coppic
:10:43. > :10:49.of conflict of interests is likely to pop up. Rex Tillerson. Rex
:10:50. > :10:52.Tillerson released a 38 page financial disclosure filing.
:10:53. > :10:56.Senators will want to probe his stance on Russia as well as his
:10:57. > :11:00.relationship with Exxon mobile the oil giant where he served as Chief
:11:01. > :11:07.Executive until this year. Just to give you an example. If the Trump
:11:08. > :11:11.administration lifts Russian sanctions Exxon mobile would be able
:11:12. > :11:16.to move forward with deals worth billions. Lawmakers will want to
:11:17. > :11:20.make sure Rex Tillerson is working in the interests of the US people
:11:21. > :11:28.and not for his former people. Former company.
:11:29. > :11:32.Joining us is Richard Fletcher, Business Editor of The Times.
:11:33. > :11:38.What impact has there been on the dollar? We have seen the dollar
:11:39. > :11:43.strengthen in the last few weeks and months, overnight, we saw it full
:11:44. > :11:47.back against a basket of currencies, but not against the pound. The
:11:48. > :11:51.market will have one eye on trump today. The expectation for the US
:11:52. > :11:56.economy, the market appears to have concluded many of his policies will
:11:57. > :11:59.be good. It is a boost but, there is the fear about protectionism and
:12:00. > :12:03.what it means for trade and what it means for the US relationship with
:12:04. > :12:06.China. It is quite interesting the World Bank global outlook was out
:12:07. > :12:09.today and that outlines the real uncertainty about the US and what
:12:10. > :12:12.impact it will have on the global economy, but interesting what
:12:13. > :12:15.Michelle said, I think, for the first time, more than ever, not for
:12:16. > :12:19.the first time, but more than ever, we have got this issue of business
:12:20. > :12:22.interest and being in that senior position and it is not just as
:12:23. > :12:29.Michelle said, Donald Trump, it is Rex Tillerson as well, head of Exxon
:12:30. > :12:33.mobile. Although we have had lots of announcements on Twitter, we haven't
:12:34. > :12:40.had many public announcements, we haven't had a big conference. It
:12:41. > :12:46.will be fascinating for the markets. Algorisms are really having to adapt
:12:47. > :12:50.to the tweets, aren't they, that policy seems to be indicated by
:12:51. > :12:55.Donald Trump's tweets and they are having to adopt to that, like we
:12:56. > :12:59.have with news wires in the past? There is a pause between the first
:13:00. > :13:05.tweet or the second tweet. He is either slow at typing or keeping us
:13:06. > :13:08.in suspense. UK retail, a big week? We had Next last week which was
:13:09. > :13:14.disappointing and Morrisons yesterday which was good.
:13:15. > :13:19.Sainsbury's today which was good and tomorrow we get Marks Spencer's
:13:20. > :13:23.and Debenhams and Tesco. At the end of tomorrow we conclude whether in
:13:24. > :13:32.the UK it was a good Christmas or bad Christmas for retailers. Reports
:13:33. > :13:36.that Wall Mart in the US is trying to restrict ture.
:13:37. > :13:43.-- restrict ture. Richard will be back in about five
:13:44. > :13:51.minutes. He's not done yet. We have got some good stories to discuss
:13:52. > :13:58.including the Hushmie! We've got a story that comes out of
:13:59. > :14:00.a movie. Our next guest is feeding babies
:14:01. > :14:07.around the world. The supermarket Sainsbury's said it
:14:08. > :14:10.had a record Christmas week as it The company said it saw
:14:11. > :14:16.30 million transactions Theo Leggett is in our
:14:17. > :14:23.business newsroom. So a good Christmas then,
:14:24. > :14:30.but was it all good news? Well, if you look at the market
:14:31. > :14:34.reaction, investors are certainly impressed. I like having a
:14:35. > :14:38.spectacular graph. Look at this one. Sainsbury's shares up nearly 8.5% so
:14:39. > :14:42.far this morning because analysts were expecting the figures to be
:14:43. > :14:47.worse. On the surface, as you said, they're good. ?1 billion worth of
:14:48. > :14:51.sales, 30 million transactions. Dig into the figures a little bit more
:14:52. > :14:55.and it is not quite so rosy. If you look at like for like sales, so
:14:56. > :15:01.sales that are comparable to the same period last year, they were up
:15:02. > :15:06.just 0.1% and overall sales, only up 0.8%. Not a spectacular performance,
:15:07. > :15:10.but think about it, this is a sector which is involved in a price war and
:15:11. > :15:13.there are all sorts of uncertainties and pressures like the fall in value
:15:14. > :15:18.of the pound which is likely to push up prices. So it will have come as a
:15:19. > :15:23.relief to Sainsbury's and other retailers that the Christmas period
:15:24. > :15:26.seems to have been pretty good. The British Retail Consortium were
:15:27. > :15:29.telling us yesterday that the last week before Christmas, with
:15:30. > :15:33.Christmas falling on a Sunday, so Christmas Eve being a Saturday was
:15:34. > :15:37.better than expectedment so overall, there is optimism even though if you
:15:38. > :15:48.look into the figures, they're not actually that spectacular. No what
:15:49. > :15:53.about the year ahead? The big thing hanging over Sainsbury's like other
:15:54. > :16:02.companies is the decline in the fall of the pound. Pushing up the price
:16:03. > :16:07.of imported products. Buying in pounds becomes weaker. Sainsbury say
:16:08. > :16:11.they are prepared. They say the market remains competitive. The
:16:12. > :16:17.impact of the devaluation of sterling remains uncertain, but they
:16:18. > :16:26.are prepared. Can you think of anyone who might need a Hush Me? No
:16:27. > :16:38.idea what you're talking about. MIT world? -- am I too old? Is a lot
:16:39. > :16:39.more on the website about Sainsbury's, Morrisons, how we are
:16:40. > :16:43.faring in the UK. You're watching Business Live -
:16:44. > :16:45.a reminder of our top story: Donald Trump is getting ready
:16:46. > :16:48.to unveil what steps he intends to take to make sure his business
:16:49. > :17:01.interests don't conflict Let's take a look at the markets.
:17:02. > :17:06.Slight drop across the board. In Europe anyway. Follows on from a
:17:07. > :17:11.record winning streak, particularly for the FT-SE 100. Nine straight
:17:12. > :17:25.sessions in a row where there was again. Well above that 7000 mark.
:17:26. > :17:28.Volkswagen shares in Germany, repercussions that they are settling
:17:29. > :17:31.$4.3 billion with US authorities. When our next guest came
:17:32. > :17:33.across a factory in northern England making baby formula-
:17:34. > :17:35.it didn't seem like Business was slow -
:17:36. > :17:39.so slow, in fact, that its owners But he was able to see the potential
:17:40. > :17:44.and managed to secure Next followed a deal with China -
:17:45. > :17:54.which was just recovering from a scandal over
:17:55. > :17:57.contaminated infant formula. China now makes up one third
:17:58. > :18:04.of the company's business. The raw materials are
:18:05. > :18:08.all sourced locally - using 220 farms in the region
:18:09. > :18:10.to provide the milk. And the business is expanding -
:18:11. > :18:14.it's now branching into And Ross McMahon, the boss
:18:15. > :18:30.of Kendal Nutricare joins me now. How did you manage to get into
:18:31. > :18:37.China? The holy Grail. What did you do? How is the approach different to
:18:38. > :18:41.getting into the UK supermarkets? I researched the market for five
:18:42. > :18:48.years, a lot of the research done before I bought the facility. I work
:18:49. > :18:53.with the state-owned company, Orient International. I met Mr Chang, a
:18:54. > :18:59.great man, working closely with him over the years. Waiting patiently to
:19:00. > :19:06.buy the facility. Launching the product in August, in 4000 stores,
:19:07. > :19:13.by February in 6000 stores, 90% of China. When you were in discussion
:19:14. > :19:19.with the Chinese business people, China was coming out of a terrible
:19:20. > :19:22.baby milk scandal. Chinese made baby powder was causing babies to be
:19:23. > :19:28.extremely unwell, some actually died. That had an enormous impact on
:19:29. > :19:35.the thinking of every mother in China. Tremendous loss of confidence
:19:36. > :19:40.in Chinese domestic product. Really looking all over the world. Britain
:19:41. > :19:46.has the best quality milk on its doorstep. I would imagine other
:19:47. > :19:54.countries would counter that! Australia importing a lot of
:19:55. > :19:59.product. We saw the opportunity to put natural raw materials back into
:20:00. > :20:04.the product. Multinationals were putting in oils, using skimmed milk.
:20:05. > :20:09.It is much more natural to use the full cream of the whole milk. A
:20:10. > :20:15.natural milk fat. This was a real gamble. The factory you bought was
:20:16. > :20:21.failing. What did you see when you went to visit that factory? What
:20:22. > :20:25.were your thoughts about turning it around? Festival, a world-class
:20:26. > :20:30.facility, built by Glaxo 55 years ago, the staff have tremendous
:20:31. > :20:37.knowledge. Absolute privilege to lead them. They have such a bank of
:20:38. > :20:40.knowledge. We share a vision, everybody excited about going all
:20:41. > :20:43.over the world. Representing the brand name of the town. All of the
:20:44. > :21:07.products we launch, now Kendal Adult. The whole town is
:21:08. > :21:14.behind us. Now there is more demand for baby milk products. The way the
:21:15. > :21:17.family is working, now grandparents are looking after babies. In the UK,
:21:18. > :21:28.you have not had that much success. The market is dominated by
:21:29. > :21:36.multinationals. They dominate the market. We are the only one using
:21:37. > :21:38.milk fat. We are getting fantastic feedback from consumers,
:21:39. > :21:43.testimonials from families across the UK. Better provenance, better
:21:44. > :21:48.sleeping patterns. People are embracing the quality of the
:21:49. > :21:53.product. The quality of the products, competitively priced.
:21:54. > :21:56.Supermarkets are ringing us up. In meetings and discussions with them,
:21:57. > :22:05.hopefully it will be available in the UK market by the summer. Good
:22:06. > :22:11.luck. Thank you for coming in. In MA meant we will get the stories in the
:22:12. > :22:15.business pages. Including the Hush Me, we will explain what it is. Many
:22:16. > :22:20.people getting in touch with that story. First, here is how to get in
:22:21. > :22:30.touch with us. You can stay ahead with all the day's breaking news on
:22:31. > :22:46.the Business Live page. We want to hear from you, too. Get involved.
:22:47. > :22:58.On TV, and online, whenever you need to know. We will explain what the
:22:59. > :23:07.Hush Me is now. Well we're looking at the papers. Phone gadget shuts up
:23:08. > :23:17.the office loudmouth. Sounds like a gift. It does rank as one of the
:23:18. > :23:22.strangest devices to come out of the CES conference in Las Vegas. Great
:23:23. > :23:27.amusement when we were discussing it at the Times. You strap it across
:23:28. > :23:33.your mouth, and it stops colleagues being annoyed by loud conversations.
:23:34. > :23:39.They think you should have won at the Times. You strap it on, you can
:23:40. > :23:42.have a conversation on the phone, very loud, no one will hear you. You
:23:43. > :23:48.get Bluetooth through your earphones. You can still hear what
:23:49. > :23:52.the other person is saying. It plays music over your conversation, even
:23:53. > :24:01.if colleagues are very close, they will hear coming music. Sounds
:24:02. > :24:10.fantastic. Joe says can they hand this out on trains? I'm not sure I'd
:24:11. > :24:14.want to use somebody else's. Simon says, really I get frustrated when
:24:15. > :24:21.the office resembles a library. I need an atmosphere. I do get that.
:24:22. > :24:35.Max, it has to be snoring. Where it at night. Would there be breathing
:24:36. > :24:38.issues? A whole list of things, so noisy keyboards, people cooking
:24:39. > :24:43.fish. People talking with their mouths full of food. I have to say
:24:44. > :24:48.somebody could kippers down here, I could not function that day.
:24:49. > :24:51.Financial Times, Deutsche Bank scowling social media to find
:24:52. > :24:55.talent. We know about the fact that when you apply for a job they will
:24:56. > :24:59.look you up, find out what you have been saying on Facebook, social
:25:00. > :25:04.media. The bank actually looking for people on social media, approaching
:25:05. > :25:07.them. Deutsche Bank are worried people are not applying to the bank
:25:08. > :25:11.that they would like to employ because banking has not got the
:25:12. > :25:16.reputation it once had. And they have had bad headlines. As well as
:25:17. > :25:21.encouraging people to apply they are searching out for graduates are
:25:22. > :25:27.searching social media profiles, Twitter, what clubs they are a
:25:28. > :25:30.member of. This is a bit like you're uncool bank turning up at the
:25:31. > :25:37.graduate party waving a brochure, feel slightly creepy. It is a
:25:38. > :25:48.reminder to all of us, what is on social media may come back to bite
:25:49. > :25:51.us. It is a gift for LinkedIn. If you were on Twitter, not quite as
:25:52. > :25:54.happy about your bank seeing your feed. Thanks for coming in.
:25:55. > :25:59.There will be more business news throughout the day on the BBC Live
:26:00. > :26:01.web page and on World Business Report.
:26:02. > :26:07.We will keep you updated on that press comments from Donald Trump.