12/01/2017 BBC Business Live


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will be sunny but cold, feeling particular cold down those North Sea


coasts given we could have some severe gales.


This is Business Live from BBC News with Sally Bundock


The director of the US Office of Government Ethics has sharply


criticised Donald Trump's plan to hand his global business empire


to his sons before he becomes president of the world's biggest


Live from London, that's our top story on Thursday 12th January.


From boardroom chief to commander-in-chief.


Trump hands control of his business empire to his sons.


But ethical questions will remain for America's


Plus - "I apologize to the South Korean people".


Samsung boss Jay Y Lee is questioned in a growing corruption scandal.


Markets in Europe are all headed lower again today. We talk you


through the change in sentiment. Can artificial intelligence predicts the


best way to reach you as a consumer? We will speak to an advertising


expert who thinks the answer is yes. Cinema chains are reporting record


ticket sales. Is it a movie for you in the comfort of your own home, or


do you still love going to the pictures? What draws you to the big


screen? Let us know using this hashtag.


Welcome to the programme. If you're wondering where is the person


playing the piano in the cinema, you are definitely showing your age!


We are in the US, where President-elect Donald Trump has


been dismissing claims Russia holds compromising material on him,


The row has even threatened to overshadow controversy over


Mr Trump's business dealings, and concerns he will face a major


conflict of interest once in the White House.


On Wednesday he said he'd hold onto his business empire,


but hand "complete control" to his two eldest sons,


But in the last few hours, the head of US Office


of Government Ethics has sharply criticised the plan,


saying it does not match the "standards" of US presidents


So will it be enough to silence the critics?


The Trump Organization is not listed on the stock market, so it doesn't


But according to private company research firm Privco,


the real estate, hotel and leisure empire made revenues


According to Bloomberg, as well as billions in assets,


the organisation has some $600 million of debt, owed to scores


Another potential source of conflict.


And it employs an estimated 22,000 people in more than 20


countries, raising questions over foreign policy.


But Mr Trump's lawyer says "no new foreign deals will be made


She says over 30 pending deals have been cancelled,


instantly losing the family millions of dollars.


And an ethics advisor will be appointed to approve all dealings


that might raise conflict of interest concerns,


or be seen to exploit the office of the presidency.


Tom Packer, Fellow at Rothermere American Institute, joins us now.


Great to have you with us. Thank you for coming in. The leader of


America's ethics pretty much slams the Trump plans to split from the


business. The Donald Trump go far enough? Obviously all positions are


somewhat politicised in the United States. One wouldn't necessarily


take that as handed down on tablets from Mount Sinai. The fact is, the


usual procedures for most senior American roles would require more of


a separation than Mr Trump has done so far. With all of this, this is


unprecedented, right? Having a billionaire, if you will, in the


office. We've had millionaire presidents but, somebody like that


he's got so much business interest... It is unprecedented in


the history of modern conflicts of interest legislation. JFK's family


would arguably be even richer than Donald Trump, that was the early


1960s and people didn't worry about that at the time. The last few


presidents have been solid millionaires, not billionaires. The


sheer level of economic interest has been much less. What happens now?


The head of the ethics committee is saying this isn't going far enough.


There's a lot of criticism about his decision in the press, he's not


going to change that, is he? I think in the short term they will follow


but they were talking about. I would be interested to see who this ethics


adviser is, how dependent they are on Mr Trump, how much experience


they have. It might become a controversial issue. He might come


under more pressure. Particularly as he fell out with Congress,


particularly if he fell out with both parties in Congress, he might


find some legislation coming along that makes this harder. At the


moment I don't see what they are going to use to force him to go


further than he already has. For those of us watching yesterday,


waiting to see more meat on the bones in terms of economic policies


from Trump, very disappointed, right? The policy was overshadowed


by the controversies. One thing to look caveat is Paul Ryan, speak of


the house. What is he going to stop prioritising? Never underestimate


how much it is Congress driving the agenda economically. I suspect they


will be prioritising tax reform, changing Obamacare. I think Paul


Ryan will be more important over the next few months in what dominates


the headlines economically. Thank you. Shortly we will talk about


impact on financial markets of that press conference, because it is


still having reverberations around the world even today. Now some of


the other stories making the headlines around the world.


Austria's Chancellor, Christian Kern, has said he'll ask


the European Union to let local employers hire Austrians before


other EU citizens, unless there are no suitable candidates.


He said incomers from eastern Europe were putting pressure


India's Foreign Minister has criticised online retail giant


Amazon after its Canadian website was found to be selling doormats


Sushma Swaraj tweeted that Amazon should withdraw


the "insulting" products, or else current visas for Amazon


That India demands an Amazon apology is actually on the Biz website. Also


China and Bitcoin. We were talking about Bitcoin just last week. The


best performing currency in the world, it was, hitting 1000 bucks.


It's an online currency. But it doesn't exist, you know what I mean.


The country's Central bank said it wanted to investigate market


manipulation, money-laundering and unauthorised financing. This has


sent the currency more 16% lower. Virtual currency, that's what it is.


Now the defacto boss of Samsung has been questioned


Lee Jae-Yong isn't just any executive.


He is heir to a powerful business dynasty, the grandson


He's already given evidence to politicians about the scandal,


but this is the first time he's faced questioning as a suspect.


Lots of apologies, but not much said about the actual act, any


wrongdoing, no admitting to doing things wrong. Lots of apologies.


It's that kind of classic apology, I'm very sorry, for trusting people


too much. In the case of Jay Y Lee, for sending out a bad image. It's


become a classic political apology where you don't admit any kind of


wrong doing yourself. Everybody in this scandal is saying, I've not


broken the law, and the prosecutor is now fingering some very important


collars indeed. Including Jay Y Lee, the heir apparent to Samsung. His


dad has been seriously ill for two years, now. He is the man at the top


of Samsung, and he could face serious criminal charges. The nub of


this allegation, which they deny, is that Samsung paid a lot of money to


two companies controlled by the best friend of the President of the


country. In return, the allegation is, Samsung got the votes of the


national pension fund to back a big change inside. That's the


allegation, everybody is apologising, everybody is denying


wrongdoing. Thank you very much. Markets were reacting to that press


conference from Donald Trump. The dollar falling for a second day.


Today, Japanese stocks sliding. The yen getting stronger. The fact there


was very scant detail on policy, not helping business leaders around the


world. The losers are the drug makers worldwide, partly because of


what he had to say. Let's look at Europe now. We've had more news out


big retailers like Tesco and Marks and today. We've got gold advancing,


or oil retreating. That's what's happening in general. A sentiment


change on markets, it's all been about games going up and up. We'll


talk some more in a moment about that.


And Michelle Fleury has the details about what's ahead


The Trump rally has pushed stocks to new highs. How enduring is it? We


may soon find out. Financial companies had been among the big


beneficiaries. Several of them turning their profit figures on


Friday. Other companies are reporting ahead of that including


Delta Airlines 's, scheduled to report its fourth-quarter results


before the market open this Thursday. Wall Street investors are


looking for higher revenues but also higher costs, a trend that has been


seen across the industry. Meanwhile several Federal reserve officials


are also speaking this Thursday, starting with Janet Gillen. She is


talking to educators from across the country. Several of the regional Fed


presidents will also be talking about US economic outlook, including


James Bullitt. Joining us is Jessica Ground, UK


Equities Fund Manager at Schroders. Great to have you. Let's start with


the conference yesterday from Trump. Disappointed for those of us looking


for more economic policy. What was interesting is he was still only


eight days away from becoming President, and will still prepared


to stand there globally and publicly, pretty much picking on


sectors and actually naming certain corporations he wasn't happy with.


It felt like a continuation of the election campaign in some ways.


Light on policy. The pharma sector, drug pricing has been


a hot issue now for a while following the back of a number of


significant increases. The drugs companies took a hit after that.


Unsurprisingly, the American market is an incredibly profitable one.


It's the largest global health care market. He was pretty clear on


looking at pricing and really expecting a better deal from the


companies, so starting to come under pressure there. Janet Yellen and


speaking later today. The head of the US Federal reserve, sorry. She


is talking and she is equally as not across stuff as we are in terms of


what he's going to do next. He's also been a reasonable critic of


her. I think the focus she will keep it on will be the park for


interest-rate rises in the US. That will really be what people are


looking at. The dollar being the reserve currency and a feeling of


how much does the Fed feel they should be tightening, and over how


long. Are you going to come back and take us through some of the papers,


shortly. The dollar took a bit of a hit, too. Down today for a second


day in a row. Coming up, is artificial intelligence smart enough


to predict your tastes as a consumer? You're watching business


live from BBC News. If you are watching in the UK, there is no


break which may come as a relief. We going to talk about the retail


stories in the UK. It's a bumper day of retail results,


with news from the likes of Marks and Spencer,


John Lewis, Tesco, Waitrose, After results from Morrison's


and Sainsbury's this week, and disappointing results from Next


last week, we now have a good idea how our retailers


did over Christmas. Theo Leggett is in our business


newsroom, and he's been Quite a few out today to tell us


their numbers over Christmas. A lot of numbers up today and far too many


for me to go through one by one. Let's look at some of the big ones


to begin with. Let's start with Tesco. It took the last quarter of


the year and the Christmas period together, over that period, its


like-for-like sales rose 14%. Not a bad performance although it tailed


off a bit in the Christmas week compared to last year. Food sales


did pretty well but what's interesting to me is that clothing


sales were up 4.3%. You mentioned we had a trading statement from Next


last week. Retailers like Next have been struggling a bit but its


statement showed a big increase in clothing sales.


Tesco's results look positive on the surface, but the markets don't seem


that impressed, their shares are down this morning. Moving on, let me


show you this, this is what has happened to Marks Spencer's share


price this morning, up something like 8% at the opening, they have


tailed off little bit, but still up 3%. That looks like investors are


going through the nitty-gritty of what they were saying. So what were


they so pleased about first thing in the morning? Sales were up for the


group as a whole 5.9%, 4.3% if you strip out the effects of currency


fluctuations. Food sales again did very well, but also an increase in


clothing sales, an area where Marks clothing sales, an area where Marks


Spencer has really suffered over the past few years. But something


else I find very interesting, sales in its international stores were up


19%, a good form but don't forget that Marks Spencer is in the


process of closing a lot of its international stores. I know you


love a good spike on your board there, amazing!


You're watching Business Live, our top story:


The director of the US Office of Government Ethics


Trump's plan to hand his global business empire to his sons,


before his inauguration on 20th January.


He is handing control of the company, not giving up the company


himself. Hanging on with all his might! A


quick flash at the markets again, Sally was explaining what was going


on, a bit of red, we have had record after record on Wall Street and in


London. Advertising has always been


an industry about embracing change and looking for new ways


of selling things. Advertisers have also always


known a lot about us and now the industry


is using artificial intelligence The7stars is one agency making use


of this new direction. It's one of the UK's most successful


and largest independent with clients that include Virgin EMI


Records, Habitat and Nintendo. Jenny Biggam is one of the big


brains in the industry. She's co-founder of independent


media agency the7stars. Nice to see you, Jenny!


Can I just... Just researching and looking at some of the details, when


you started, you just thought of doing stuff not normally, a bit


radical? You got rid of job titles the whole holiday forms, your


workers don't need to fill out forms, they just go on holiday for


as long as they want. Really?! Why did you go down that path? We set


the agency up in 2005, and it was a once-in-a-lifetime opportunity to


set up a business of your own, you so you start with a blank piece of


paper. One of the things we thought really hard about was what kind of


employer we wanted to be, how we could do things differently. So we


put in place lots of different things about better come with our


team, treating them as a team, not departments, not breaking things


down into silos. The holiday form was something we started up when


three or four were sitting in the office, saying, we will just tell


each other when we will were going away. That is quite liberating, so


we extended it as we brought in more. Do your big-name clients not


have a problem if you scoot off on holiday? The holiday thing works


pretty much as it would anywhere else, they will hand over their work


to a colleague. Are not as easy as it sounds. The only thing we don't


do is keep counting the numbers, that is what we take away. What is


the longest amount of leave that an employee has taken? Do you know, or


do you not count? People, if they are going on a honeymoon or doing


something big, they take a little bit longer. See you in six months!


How difficult is it to remain independent in the world, the media


world that we live in today? It is less difficult now for us, when we


first set up, it was more difficult, because we had challenges around how


you by media when you do not have the scale to negotiate with, things


like that, but we are now pretty established as a big independent


agency, and you know, that is still quite different in the part of the


industry that we work in, so creative agencies, there is a lot of


start-ups, a lot of innovation in that part of the market. Talk us


through this issue of artificial intelligence, to what extent it will


help you help clients sell stock. Yeah, so I suppose from our point of


view, if someone has... You're been talking about retail, and if someone


has bought a pair of shoes, it is important that we understand what


motivated that purchase, why they picked that product, that brand,


that retailer. In order to understand that, you have to unpick


the whole communications channel. So can a I'd do that? A human being


could never even get close, there would be no way of doing that, but


an algorithm, particularly in digital communications, can start to


unpick the effect of different limitations on that customer


journey? We talk about AI a lot in the field of technology, in the life


we lead, do you think this is the part that advertising will go down?


It is really important because advertisers are demanding more


accountability, to understand how millions of pounds are being spent


and where they are getting the biggest fact, so when you are making


big decisions with other people's money, it is important to put in


place every single technique that you can. Fascinating! We have run


out of time. If you could get at the visual intelligence together is more


time on the programme, I will pay you for that! -- artificial


intelligence. In a moment, we'll take a look


through the business pages, but first here's a quick reminder


of how to get in touch with us. Apparently more of us are going to


the cinema in quite some time, we have been asking why.


The business life page is somewhere where you can stay a head with all


the breaking news. -- Business Live. Get involved on the web page on the


BBC website. We all got caught there, didn't we?!


Jessica is back, take us through the papers.


We had a much-needed chat about robots, MEPs, politicians in Europe


voting on robots and whether a kill swap is required. You read that


headline and think, what does that mean?! I think it is quite


forward-looking of the European Parliament, recognising that there


will be more robots working alongside humans, and it is trying


to think ahead into how that might work, and things like protecting


humans, in those types of environments. Whether or not you can


get the right answers, because things are changing so fast, that is


the real question. But talking about 5 million jobs being replaced by


robots, this is a very real is you, and we are all going to start


dealing with much more of that in the workplace. -- a very real issue.


When we are talking about robots, this is manufacturing, because one


expert said that robots will take jobs, but people will have whole new


areas that we have not thought of at the moment. There are new jobs about


working alongside robots, understanding robots, but in caring,


robots potentially doing some of the lifting and menial jobs there. And


yes, I think it will free people up to do different jobs, but it is


changing the skills. One cinema chain is reporting record ticket


sales as it seeks more takeovers, that is in the Telegraph, talking


about Cineworld, but this is a broader trend in the UK. Bridget


Jones, Jungle Book, very popular. This is the wider trend of


experiences, not things, we have reached peak stuff, and cinema is a


great thing to go out and do. Even though we have all this media, the


advantages that you are not distracted. Some viewers have said


they just go for the popcorn! You buy popcorn at home! That is all


from us for the day, thank you for your company, see you soon.


Hello, good morning. It is really going to feel cold for all


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