:00:00. > :00:00.will be sunny but cold, feeling particular cold down those North Sea
:00:00. > :00:07.coasts given we could have some severe gales.
:00:08. > :00:10.This is Business Live from BBC News with Sally Bundock
:00:11. > :00:14.The director of the US Office of Government Ethics has sharply
:00:15. > :00:16.criticised Donald Trump's plan to hand his global business empire
:00:17. > :00:19.to his sons before he becomes president of the world's biggest
:00:20. > :00:33.Live from London, that's our top story on Thursday 12th January.
:00:34. > :00:35.From boardroom chief to commander-in-chief.
:00:36. > :00:39.Trump hands control of his business empire to his sons.
:00:40. > :00:41.But ethical questions will remain for America's
:00:42. > :00:51.Plus - "I apologize to the South Korean people".
:00:52. > :01:01.Samsung boss Jay Y Lee is questioned in a growing corruption scandal.
:01:02. > :01:11.Markets in Europe are all headed lower again today. We talk you
:01:12. > :01:14.through the change in sentiment. Can artificial intelligence predicts the
:01:15. > :01:19.best way to reach you as a consumer? We will speak to an advertising
:01:20. > :01:23.expert who thinks the answer is yes. Cinema chains are reporting record
:01:24. > :01:27.ticket sales. Is it a movie for you in the comfort of your own home, or
:01:28. > :01:33.do you still love going to the pictures? What draws you to the big
:01:34. > :01:41.screen? Let us know using this hashtag.
:01:42. > :01:50.Welcome to the programme. If you're wondering where is the person
:01:51. > :01:53.playing the piano in the cinema, you are definitely showing your age!
:01:54. > :01:56.We are in the US, where President-elect Donald Trump has
:01:57. > :01:58.been dismissing claims Russia holds compromising material on him,
:01:59. > :02:01.The row has even threatened to overshadow controversy over
:02:02. > :02:04.Mr Trump's business dealings, and concerns he will face a major
:02:05. > :02:07.conflict of interest once in the White House.
:02:08. > :02:10.On Wednesday he said he'd hold onto his business empire,
:02:11. > :02:12.but hand "complete control" to his two eldest sons,
:02:13. > :02:17.But in the last few hours, the head of US Office
:02:18. > :02:19.of Government Ethics has sharply criticised the plan,
:02:20. > :02:23.saying it does not match the "standards" of US presidents
:02:24. > :02:31.So will it be enough to silence the critics?
:02:32. > :02:34.The Trump Organization is not listed on the stock market, so it doesn't
:02:35. > :02:40.But according to private company research firm Privco,
:02:41. > :02:42.the real estate, hotel and leisure empire made revenues
:02:43. > :02:52.According to Bloomberg, as well as billions in assets,
:02:53. > :02:56.the organisation has some $600 million of debt, owed to scores
:02:57. > :03:01.Another potential source of conflict.
:03:02. > :03:05.And it employs an estimated 22,000 people in more than 20
:03:06. > :03:11.countries, raising questions over foreign policy.
:03:12. > :03:14.But Mr Trump's lawyer says "no new foreign deals will be made
:03:15. > :03:23.She says over 30 pending deals have been cancelled,
:03:24. > :03:27.instantly losing the family millions of dollars.
:03:28. > :03:30.And an ethics advisor will be appointed to approve all dealings
:03:31. > :03:34.that might raise conflict of interest concerns,
:03:35. > :03:42.or be seen to exploit the office of the presidency.
:03:43. > :03:50.Tom Packer, Fellow at Rothermere American Institute, joins us now.
:03:51. > :03:59.Great to have you with us. Thank you for coming in. The leader of
:04:00. > :04:05.America's ethics pretty much slams the Trump plans to split from the
:04:06. > :04:11.business. The Donald Trump go far enough? Obviously all positions are
:04:12. > :04:15.somewhat politicised in the United States. One wouldn't necessarily
:04:16. > :04:21.take that as handed down on tablets from Mount Sinai. The fact is, the
:04:22. > :04:25.usual procedures for most senior American roles would require more of
:04:26. > :04:32.a separation than Mr Trump has done so far. With all of this, this is
:04:33. > :04:36.unprecedented, right? Having a billionaire, if you will, in the
:04:37. > :04:39.office. We've had millionaire presidents but, somebody like that
:04:40. > :04:45.he's got so much business interest... It is unprecedented in
:04:46. > :04:50.the history of modern conflicts of interest legislation. JFK's family
:04:51. > :04:54.would arguably be even richer than Donald Trump, that was the early
:04:55. > :04:58.1960s and people didn't worry about that at the time. The last few
:04:59. > :05:02.presidents have been solid millionaires, not billionaires. The
:05:03. > :05:07.sheer level of economic interest has been much less. What happens now?
:05:08. > :05:13.The head of the ethics committee is saying this isn't going far enough.
:05:14. > :05:17.There's a lot of criticism about his decision in the press, he's not
:05:18. > :05:21.going to change that, is he? I think in the short term they will follow
:05:22. > :05:25.but they were talking about. I would be interested to see who this ethics
:05:26. > :05:29.adviser is, how dependent they are on Mr Trump, how much experience
:05:30. > :05:33.they have. It might become a controversial issue. He might come
:05:34. > :05:36.under more pressure. Particularly as he fell out with Congress,
:05:37. > :05:39.particularly if he fell out with both parties in Congress, he might
:05:40. > :05:46.find some legislation coming along that makes this harder. At the
:05:47. > :05:49.moment I don't see what they are going to use to force him to go
:05:50. > :05:52.further than he already has. For those of us watching yesterday,
:05:53. > :05:56.waiting to see more meat on the bones in terms of economic policies
:05:57. > :06:03.from Trump, very disappointed, right? The policy was overshadowed
:06:04. > :06:08.by the controversies. One thing to look caveat is Paul Ryan, speak of
:06:09. > :06:15.the house. What is he going to stop prioritising? Never underestimate
:06:16. > :06:21.how much it is Congress driving the agenda economically. I suspect they
:06:22. > :06:24.will be prioritising tax reform, changing Obamacare. I think Paul
:06:25. > :06:26.Ryan will be more important over the next few months in what dominates
:06:27. > :06:33.the headlines economically. Thank you. Shortly we will talk about
:06:34. > :06:38.impact on financial markets of that press conference, because it is
:06:39. > :06:40.still having reverberations around the world even today. Now some of
:06:41. > :06:43.the other stories making the headlines around the world.
:06:44. > :06:45.Austria's Chancellor, Christian Kern, has said he'll ask
:06:46. > :06:47.the European Union to let local employers hire Austrians before
:06:48. > :06:50.other EU citizens, unless there are no suitable candidates.
:06:51. > :06:52.He said incomers from eastern Europe were putting pressure
:06:53. > :06:56.India's Foreign Minister has criticised online retail giant
:06:57. > :06:58.Amazon after its Canadian website was found to be selling doormats
:06:59. > :07:06.Sushma Swaraj tweeted that Amazon should withdraw
:07:07. > :07:09.the "insulting" products, or else current visas for Amazon
:07:10. > :07:34.That India demands an Amazon apology is actually on the Biz website. Also
:07:35. > :07:40.China and Bitcoin. We were talking about Bitcoin just last week. The
:07:41. > :07:49.best performing currency in the world, it was, hitting 1000 bucks.
:07:50. > :07:56.It's an online currency. But it doesn't exist, you know what I mean.
:07:57. > :07:59.The country's Central bank said it wanted to investigate market
:08:00. > :08:04.manipulation, money-laundering and unauthorised financing. This has
:08:05. > :08:09.sent the currency more 16% lower. Virtual currency, that's what it is.
:08:10. > :08:11.Now the defacto boss of Samsung has been questioned
:08:12. > :08:19.Lee Jae-Yong isn't just any executive.
:08:20. > :08:23.He is heir to a powerful business dynasty, the grandson
:08:24. > :08:27.He's already given evidence to politicians about the scandal,
:08:28. > :08:30.but this is the first time he's faced questioning as a suspect.
:08:31. > :08:44.Lots of apologies, but not much said about the actual act, any
:08:45. > :08:49.wrongdoing, no admitting to doing things wrong. Lots of apologies.
:08:50. > :08:58.It's that kind of classic apology, I'm very sorry, for trusting people
:08:59. > :09:03.too much. In the case of Jay Y Lee, for sending out a bad image. It's
:09:04. > :09:07.become a classic political apology where you don't admit any kind of
:09:08. > :09:11.wrong doing yourself. Everybody in this scandal is saying, I've not
:09:12. > :09:16.broken the law, and the prosecutor is now fingering some very important
:09:17. > :09:24.collars indeed. Including Jay Y Lee, the heir apparent to Samsung. His
:09:25. > :09:29.dad has been seriously ill for two years, now. He is the man at the top
:09:30. > :09:37.of Samsung, and he could face serious criminal charges. The nub of
:09:38. > :09:42.this allegation, which they deny, is that Samsung paid a lot of money to
:09:43. > :09:47.two companies controlled by the best friend of the President of the
:09:48. > :09:53.country. In return, the allegation is, Samsung got the votes of the
:09:54. > :09:57.national pension fund to back a big change inside. That's the
:09:58. > :10:06.allegation, everybody is apologising, everybody is denying
:10:07. > :10:09.wrongdoing. Thank you very much. Markets were reacting to that press
:10:10. > :10:14.conference from Donald Trump. The dollar falling for a second day.
:10:15. > :10:21.Today, Japanese stocks sliding. The yen getting stronger. The fact there
:10:22. > :10:27.was very scant detail on policy, not helping business leaders around the
:10:28. > :10:31.world. The losers are the drug makers worldwide, partly because of
:10:32. > :10:37.what he had to say. Let's look at Europe now. We've had more news out
:10:38. > :10:44.big retailers like Tesco and Marks and today. We've got gold advancing,
:10:45. > :10:48.or oil retreating. That's what's happening in general. A sentiment
:10:49. > :10:53.change on markets, it's all been about games going up and up. We'll
:10:54. > :10:56.talk some more in a moment about that.
:10:57. > :10:58.And Michelle Fleury has the details about what's ahead
:10:59. > :11:07.The Trump rally has pushed stocks to new highs. How enduring is it? We
:11:08. > :11:10.may soon find out. Financial companies had been among the big
:11:11. > :11:13.beneficiaries. Several of them turning their profit figures on
:11:14. > :11:20.Friday. Other companies are reporting ahead of that including
:11:21. > :11:24.Delta Airlines 's, scheduled to report its fourth-quarter results
:11:25. > :11:28.before the market open this Thursday. Wall Street investors are
:11:29. > :11:33.looking for higher revenues but also higher costs, a trend that has been
:11:34. > :11:36.seen across the industry. Meanwhile several Federal reserve officials
:11:37. > :11:41.are also speaking this Thursday, starting with Janet Gillen. She is
:11:42. > :11:45.talking to educators from across the country. Several of the regional Fed
:11:46. > :11:47.presidents will also be talking about US economic outlook, including
:11:48. > :11:51.James Bullitt. Joining us is Jessica Ground, UK
:11:52. > :12:06.Equities Fund Manager at Schroders. Great to have you. Let's start with
:12:07. > :12:10.the conference yesterday from Trump. Disappointed for those of us looking
:12:11. > :12:13.for more economic policy. What was interesting is he was still only
:12:14. > :12:17.eight days away from becoming President, and will still prepared
:12:18. > :12:22.to stand there globally and publicly, pretty much picking on
:12:23. > :12:26.sectors and actually naming certain corporations he wasn't happy with.
:12:27. > :12:28.It felt like a continuation of the election campaign in some ways.
:12:29. > :12:44.Light on policy. The pharma sector, drug pricing has been
:12:45. > :12:50.a hot issue now for a while following the back of a number of
:12:51. > :12:55.significant increases. The drugs companies took a hit after that.
:12:56. > :13:01.Unsurprisingly, the American market is an incredibly profitable one.
:13:02. > :13:05.It's the largest global health care market. He was pretty clear on
:13:06. > :13:08.looking at pricing and really expecting a better deal from the
:13:09. > :13:17.companies, so starting to come under pressure there. Janet Yellen and
:13:18. > :13:30.speaking later today. The head of the US Federal reserve, sorry. She
:13:31. > :13:34.is talking and she is equally as not across stuff as we are in terms of
:13:35. > :13:39.what he's going to do next. He's also been a reasonable critic of
:13:40. > :13:44.her. I think the focus she will keep it on will be the park for
:13:45. > :13:48.interest-rate rises in the US. That will really be what people are
:13:49. > :13:52.looking at. The dollar being the reserve currency and a feeling of
:13:53. > :13:59.how much does the Fed feel they should be tightening, and over how
:14:00. > :14:04.long. Are you going to come back and take us through some of the papers,
:14:05. > :14:10.shortly. The dollar took a bit of a hit, too. Down today for a second
:14:11. > :14:13.day in a row. Coming up, is artificial intelligence smart enough
:14:14. > :14:20.to predict your tastes as a consumer? You're watching business
:14:21. > :14:24.live from BBC News. If you are watching in the UK, there is no
:14:25. > :14:27.break which may come as a relief. We going to talk about the retail
:14:28. > :14:31.stories in the UK. It's a bumper day of retail results,
:14:32. > :14:34.with news from the likes of Marks and Spencer,
:14:35. > :14:36.John Lewis, Tesco, Waitrose, After results from Morrison's
:14:37. > :14:39.and Sainsbury's this week, and disappointing results from Next
:14:40. > :14:42.last week, we now have a good idea how our retailers
:14:43. > :14:43.did over Christmas. Theo Leggett is in our business
:14:44. > :14:55.newsroom, and he's been Quite a few out today to tell us
:14:56. > :14:59.their numbers over Christmas. A lot of numbers up today and far too many
:15:00. > :15:03.for me to go through one by one. Let's look at some of the big ones
:15:04. > :15:06.to begin with. Let's start with Tesco. It took the last quarter of
:15:07. > :15:13.the year and the Christmas period together, over that period, its
:15:14. > :15:16.like-for-like sales rose 14%. Not a bad performance although it tailed
:15:17. > :15:20.off a bit in the Christmas week compared to last year. Food sales
:15:21. > :15:25.did pretty well but what's interesting to me is that clothing
:15:26. > :15:32.sales were up 4.3%. You mentioned we had a trading statement from Next
:15:33. > :15:35.last week. Retailers like Next have been struggling a bit but its
:15:36. > :15:43.statement showed a big increase in clothing sales.
:15:44. > :15:49.Tesco's results look positive on the surface, but the markets don't seem
:15:50. > :15:53.that impressed, their shares are down this morning. Moving on, let me
:15:54. > :15:57.show you this, this is what has happened to Marks Spencer's share
:15:58. > :16:02.price this morning, up something like 8% at the opening, they have
:16:03. > :16:06.tailed off little bit, but still up 3%. That looks like investors are
:16:07. > :16:09.going through the nitty-gritty of what they were saying. So what were
:16:10. > :16:15.they so pleased about first thing in the morning? Sales were up for the
:16:16. > :16:20.group as a whole 5.9%, 4.3% if you strip out the effects of currency
:16:21. > :16:21.fluctuations. Food sales again did very well, but also an increase in
:16:22. > :16:27.clothing sales, an area where Marks clothing sales, an area where Marks
:16:28. > :16:31.Spencer has really suffered over the past few years. But something
:16:32. > :16:39.else I find very interesting, sales in its international stores were up
:16:40. > :16:43.19%, a good form but don't forget that Marks Spencer is in the
:16:44. > :16:47.process of closing a lot of its international stores. I know you
:16:48. > :16:53.love a good spike on your board there, amazing!
:16:54. > :16:56.You're watching Business Live, our top story:
:16:57. > :16:59.The director of the US Office of Government Ethics
:17:00. > :17:04.Trump's plan to hand his global business empire to his sons,
:17:05. > :17:10.before his inauguration on 20th January.
:17:11. > :17:14.He is handing control of the company, not giving up the company
:17:15. > :17:22.himself. Hanging on with all his might! A
:17:23. > :17:26.quick flash at the markets again, Sally was explaining what was going
:17:27. > :17:30.on, a bit of red, we have had record after record on Wall Street and in
:17:31. > :17:33.London. Advertising has always been
:17:34. > :17:35.an industry about embracing change and looking for new ways
:17:36. > :17:39.of selling things. Advertisers have also always
:17:40. > :17:42.known a lot about us and now the industry
:17:43. > :17:49.is using artificial intelligence The7stars is one agency making use
:17:50. > :18:06.of this new direction. It's one of the UK's most successful
:18:07. > :18:08.and largest independent with clients that include Virgin EMI
:18:09. > :18:12.Records, Habitat and Nintendo. Jenny Biggam is one of the big
:18:13. > :18:15.brains in the industry. She's co-founder of independent
:18:16. > :18:31.media agency the7stars. Nice to see you, Jenny!
:18:32. > :18:34.Can I just... Just researching and looking at some of the details, when
:18:35. > :18:43.you started, you just thought of doing stuff not normally, a bit
:18:44. > :18:45.radical? You got rid of job titles the whole holiday forms, your
:18:46. > :18:51.workers don't need to fill out forms, they just go on holiday for
:18:52. > :18:59.as long as they want. Really?! Why did you go down that path? We set
:19:00. > :19:02.the agency up in 2005, and it was a once-in-a-lifetime opportunity to
:19:03. > :19:06.set up a business of your own, you so you start with a blank piece of
:19:07. > :19:09.paper. One of the things we thought really hard about was what kind of
:19:10. > :19:16.employer we wanted to be, how we could do things differently. So we
:19:17. > :19:23.put in place lots of different things about better come with our
:19:24. > :19:26.team, treating them as a team, not departments, not breaking things
:19:27. > :19:31.down into silos. The holiday form was something we started up when
:19:32. > :19:34.three or four were sitting in the office, saying, we will just tell
:19:35. > :19:38.each other when we will were going away. That is quite liberating, so
:19:39. > :19:51.we extended it as we brought in more. Do your big-name clients not
:19:52. > :19:57.have a problem if you scoot off on holiday? The holiday thing works
:19:58. > :20:01.pretty much as it would anywhere else, they will hand over their work
:20:02. > :20:06.to a colleague. Are not as easy as it sounds. The only thing we don't
:20:07. > :20:14.do is keep counting the numbers, that is what we take away. What is
:20:15. > :20:18.the longest amount of leave that an employee has taken? Do you know, or
:20:19. > :20:23.do you not count? People, if they are going on a honeymoon or doing
:20:24. > :20:29.something big, they take a little bit longer. See you in six months!
:20:30. > :20:34.How difficult is it to remain independent in the world, the media
:20:35. > :20:39.world that we live in today? It is less difficult now for us, when we
:20:40. > :20:43.first set up, it was more difficult, because we had challenges around how
:20:44. > :20:48.you by media when you do not have the scale to negotiate with, things
:20:49. > :20:53.like that, but we are now pretty established as a big independent
:20:54. > :20:55.agency, and you know, that is still quite different in the part of the
:20:56. > :21:00.industry that we work in, so creative agencies, there is a lot of
:21:01. > :21:06.start-ups, a lot of innovation in that part of the market. Talk us
:21:07. > :21:09.through this issue of artificial intelligence, to what extent it will
:21:10. > :21:16.help you help clients sell stock. Yeah, so I suppose from our point of
:21:17. > :21:24.view, if someone has... You're been talking about retail, and if someone
:21:25. > :21:27.has bought a pair of shoes, it is important that we understand what
:21:28. > :21:31.motivated that purchase, why they picked that product, that brand,
:21:32. > :21:37.that retailer. In order to understand that, you have to unpick
:21:38. > :21:41.the whole communications channel. So can a I'd do that? A human being
:21:42. > :21:46.could never even get close, there would be no way of doing that, but
:21:47. > :21:50.an algorithm, particularly in digital communications, can start to
:21:51. > :21:56.unpick the effect of different limitations on that customer
:21:57. > :22:03.journey? We talk about AI a lot in the field of technology, in the life
:22:04. > :22:08.we lead, do you think this is the part that advertising will go down?
:22:09. > :22:11.It is really important because advertisers are demanding more
:22:12. > :22:16.accountability, to understand how millions of pounds are being spent
:22:17. > :22:19.and where they are getting the biggest fact, so when you are making
:22:20. > :22:24.big decisions with other people's money, it is important to put in
:22:25. > :22:29.place every single technique that you can. Fascinating! We have run
:22:30. > :22:32.out of time. If you could get at the visual intelligence together is more
:22:33. > :22:35.time on the programme, I will pay you for that! -- artificial
:22:36. > :22:40.intelligence. In a moment, we'll take a look
:22:41. > :22:42.through the business pages, but first here's a quick reminder
:22:43. > :22:49.of how to get in touch with us. Apparently more of us are going to
:22:50. > :22:54.the cinema in quite some time, we have been asking why.
:22:55. > :23:09.The business life page is somewhere where you can stay a head with all
:23:10. > :23:11.the breaking news. -- Business Live. Get involved on the web page on the
:23:12. > :23:34.BBC website. We all got caught there, didn't we?!
:23:35. > :23:39.Jessica is back, take us through the papers.
:23:40. > :23:46.We had a much-needed chat about robots, MEPs, politicians in Europe
:23:47. > :23:52.voting on robots and whether a kill swap is required. You read that
:23:53. > :23:56.headline and think, what does that mean?! I think it is quite
:23:57. > :24:02.forward-looking of the European Parliament, recognising that there
:24:03. > :24:07.will be more robots working alongside humans, and it is trying
:24:08. > :24:11.to think ahead into how that might work, and things like protecting
:24:12. > :24:16.humans, in those types of environments. Whether or not you can
:24:17. > :24:20.get the right answers, because things are changing so fast, that is
:24:21. > :24:24.the real question. But talking about 5 million jobs being replaced by
:24:25. > :24:30.robots, this is a very real is you, and we are all going to start
:24:31. > :24:38.dealing with much more of that in the workplace. -- a very real issue.
:24:39. > :24:41.When we are talking about robots, this is manufacturing, because one
:24:42. > :24:46.expert said that robots will take jobs, but people will have whole new
:24:47. > :24:53.areas that we have not thought of at the moment. There are new jobs about
:24:54. > :24:57.working alongside robots, understanding robots, but in caring,
:24:58. > :25:02.robots potentially doing some of the lifting and menial jobs there. And
:25:03. > :25:06.yes, I think it will free people up to do different jobs, but it is
:25:07. > :25:12.changing the skills. One cinema chain is reporting record ticket
:25:13. > :25:17.sales as it seeks more takeovers, that is in the Telegraph, talking
:25:18. > :25:29.about Cineworld, but this is a broader trend in the UK. Bridget
:25:30. > :25:33.Jones, Jungle Book, very popular. This is the wider trend of
:25:34. > :25:41.experiences, not things, we have reached peak stuff, and cinema is a
:25:42. > :25:45.great thing to go out and do. Even though we have all this media, the
:25:46. > :25:49.advantages that you are not distracted. Some viewers have said
:25:50. > :25:55.they just go for the popcorn! You buy popcorn at home! That is all
:25:56. > :26:10.from us for the day, thank you for your company, see you soon.
:26:11. > :26:11.Hello, good morning. It is really going to feel cold for all