:00:00. > :00:00.This is Business Live from BBC News with Rachael Horne
:00:07. > :00:12.Weighing up the "wish-list", business leaders give us their take
:00:13. > :00:32.Live from London, that's our focus today on Wednesday, 18th January.
:00:33. > :00:38.Businesses have praised Theresa May for offering clarity with her vision
:00:39. > :00:42.of Britain's post-Brexit place in the world, but will she be able
:00:43. > :00:49.Also in the programme, Samsung in the dock.
:00:50. > :00:53.A court in Seoul is set to decide if it will detain the company's boss
:00:54. > :00:55.for offering millions of dollars in bribes to get approval
:00:56. > :01:01.And we have the latest on the markets after Tuesday
:01:02. > :01:08.when the pound enjoyed its best day since 2008.
:01:09. > :01:11.And we'll be live at the World Economic Forum in Davos
:01:12. > :01:14.to get the inside track on how the world's biggest institutions
:01:15. > :01:16.are dealing with the challenges of cyber security.
:01:17. > :01:21.The chief technology officer at Bank of America will be joining us.
:01:22. > :01:25.Also Cambridge University is recruiting a professor of Lego.
:01:26. > :01:28.So we want to know if the ubiquitous building blocks are now more
:01:29. > :01:49.Today, for the first time ever, a freight train from China
:01:50. > :01:56.It wasn't intended as a symbolic statement,
:01:57. > :01:59.but with the British Prime Minister now confirming the UK must leave
:02:00. > :02:04.the European single market, the train's arrival does illustrate
:02:05. > :02:06.that post-Brexit Britain may need to look further afield
:02:07. > :02:13.Theresa May used her much anticipated speech yesterday
:02:14. > :02:17.to announce the UK's priorities for upcoming Brexit negotiations.
:02:18. > :02:19.Leaving the single market means Britain will lose
:02:20. > :02:21.the right to trade with the European Union
:02:22. > :02:30.Despite this, the UK Prime Minister says the Government will negotiate
:02:31. > :02:33.for the best possible access to the trading bloc.
:02:34. > :02:36.Mrs May also said Britain will aim for a new customs union
:02:37. > :02:39.This would allow the UK to form new relationships
:02:40. > :02:41.with non-European trading partners, but it could impose higher costs
:02:42. > :02:54.The market reaction told another story with the value of the pound
:02:55. > :03:03.rocketing after Theresa May said she would allow Parliament
:03:04. > :03:06.Joining me now is Allie Renison, head of Europe and trade policy
:03:07. > :03:16.Good morning. So what is the institute's response to her speech?
:03:17. > :03:21.Well, I think, it is welcome she provided certainty and clarity
:03:22. > :03:24.around the number of scenarios, that potentially businesses have to plan
:03:25. > :03:28.for. It is to be expected to some degree, we have to take at face
:03:29. > :03:30.value, not only what the Prime Minister has been talking with
:03:31. > :03:34.respect to controls on free movement, but the EU leaders saying
:03:35. > :03:37.you can't be in the single market and have those controls and the
:03:38. > :03:41.concern was that given there is a two year time con trant with Article
:03:42. > :03:44.50, do you want to go down the road of trying to negotiate controls
:03:45. > :03:48.within the single market, find out you can't do it and then go to Plan
:03:49. > :03:53.B or do you want to start with Plan B in a sense right away? She was
:03:54. > :03:59.certainly talking tough and many would argue that that runs the risk
:04:00. > :04:03.of there being a bitter negotiating process between Europe and the UK
:04:04. > :04:06.and yet you've got David Davis today saying to the BBC, the Brexit
:04:07. > :04:10.Secretary, if you could describe him as that, there is so much common
:04:11. > :04:13.ground. There is so many reasons to do good trade between the UK and
:04:14. > :04:18.Europe. He's confident negotiations will go well. It is all about that,
:04:19. > :04:23.isn't it, how the negotiations go? We are in what some would call the
:04:24. > :04:26.fondy war period before we have started, the triggering of Article
:04:27. > :04:30.50. The hope is and this is what the UK is trying to play for is that
:04:31. > :04:35.economic and commercial interests become the order of the day very,
:04:36. > :04:39.very quickly as opposed to a focus from the EU side on political sort
:04:40. > :04:42.of protecting the unity of the 27 so to speak. In the meantime,
:04:43. > :04:46.businesses are probably going to prepare now, aren't they, for worst
:04:47. > :04:49.case scenario, ie, no access to the single market. If that's the case
:04:50. > :04:53.for the City of London, for the car industry, they have to make some
:04:54. > :04:57.serious decisions? Yes, I think that business particularly now with the
:04:58. > :05:01.single market ruled out the what the single market provides is that
:05:02. > :05:04.automatic predictability about single market access, you can get
:05:05. > :05:07.the same access, but it is subject to negotiation. I think what you
:05:08. > :05:10.will start to see is businesses put in place the contingency plans
:05:11. > :05:14.particularly if financial services, we have seen that Lloyds said they
:05:15. > :05:19.will begin opening up a subsidiary in other EU country and what
:05:20. > :05:21.business has to do is plan for the worst case scenario and hope for the
:05:22. > :05:24.best. What do you think the outcome will be and how long is this process
:05:25. > :05:27.going to take? Many are saying it will be much longer than the two
:05:28. > :05:31.years that we think it will take? Well, that's one of the big issues
:05:32. > :05:36.that comes away in terms of question marks from the speech yesterday is
:05:37. > :05:38.that we're glad to see from that there will be an implementation
:05:39. > :05:41.phase after the agreement is concluded, but what happens if the
:05:42. > :05:46.negotiation goes on beyond the two year window? I know I'll talk to you
:05:47. > :05:47.gun in the next few years. Thank you for coming in from the Institute of
:05:48. > :05:56.Directors. US regulators claim
:05:57. > :06:04.that the world's biggest producer of mobile phone chips,
:06:05. > :06:06.Qualcomm, forced Apple into an exclusivity agreement
:06:07. > :06:08.in return for lower fees. The Federal Trade commission
:06:09. > :06:10.is suing Qualcomm for unfair practices in the way it
:06:11. > :06:12.licenses its technology especially the processors used
:06:13. > :06:14.in cell phones and other devices. The company has denied
:06:15. > :06:16.the allegations saying Rolls-Royce has apologised
:06:17. > :06:19.unreservedly after being found to have conspired to corrupt
:06:20. > :06:22.or failed to prevent bribery by Rolls-Royce in China,
:06:23. > :06:28.India and other markets by the UK's The British engineering giant
:06:29. > :06:38.will pay $800 million to settle corruption
:06:39. > :06:40.cases with UK and US authorities One of Donald Trump's closest
:06:41. > :06:44.advisers has told the BBC that the US would win a trade
:06:45. > :06:48.war with China. Former Wall Street banker,
:06:49. > :06:50.Anthony Scaramucci, warned that if China chooses to retaliate
:06:51. > :06:52.when the Trump administration imposed tariffs on imports,
:06:53. > :06:54.it would cost them "way more" The comments comes as the Chinese
:06:55. > :07:00.president gave a staunch defence of globalisation
:07:01. > :07:18.at the World Economic Shall we have a look at the tablet?
:07:19. > :07:22.Yes. There are loads of great corporate stories on the tablet. I
:07:23. > :07:29.don't mean great news. Some are bad news. But stocks are on the move on
:07:30. > :07:38.the markets in London. So, that's basically illustrated here. Pearson
:07:39. > :07:42.shares down 20%. Premier Foods shares plunging. All these companies
:07:43. > :07:51.coming out with warnings today and we'll discuss them in more detail
:07:52. > :07:55.later on, but Premier Foods makes Bisto and it is warning that its
:07:56. > :07:58.profits will be 10% lower because food inflation costs are on the
:07:59. > :08:03.rise. Very interesting given what's going on with regards to Brexit,
:08:04. > :08:05.with regards to what we've discussed already in the programme and the
:08:06. > :08:07.inflation figure that came out yesterday in the UK. We'll talk some
:08:08. > :08:11.more about it later. The defacto boss of Samsung Jay Y
:08:12. > :08:14.Lee arrived at a South Korean court earlier today where a judge
:08:15. > :08:17.will decide whether he should be arrested over his alleged role
:08:18. > :08:30.in a major corruption scandal. Tell us more about what happened
:08:31. > :08:36.today and whether we have had a decision yet or not. Well, the
:08:37. > :08:43.hearing has ended and Jay Y Lee, the head of Samsung was seen leaving the
:08:44. > :08:48.courtroom as grim faced as he had arrived four hours earlier. He's now
:08:49. > :08:53.on stand-by as he and the public waits for the results later this
:08:54. > :08:58.evening. Prosecutors believe Samsung has committed bribery and has asked
:08:59. > :09:03.Jay Y Lee, the head of South Korea's largest company to be jailed for.
:09:04. > :09:08.The allegation is that Samsung gave millions of dollars in return for
:09:09. > :09:11.the votes of national pension fund in a big and contested restuck
:09:12. > :09:17.turing of the company. Last week Jay Y Lee was summoned as a suspect and
:09:18. > :09:21.was questioned for almost 24 hours. Investigators said on Monday that
:09:22. > :09:25.despite concerns, Mr Lee's arrest may have a negative effect on the
:09:26. > :09:28.economy, but establishing justice was more important.
:09:29. > :09:37.Thank you, Kevin. Asian markets are back up
:09:38. > :09:41.following losses on Tuesday. The dollar fell overnight
:09:42. > :09:45.against the yen, euro and the pound, partly
:09:46. > :09:48.because sterling strengthened during British Prime Minister
:09:49. > :09:50.Theresa May's speech about Britain's pending departure
:09:51. > :09:57.from the European Union, also the dollar was weakened
:09:58. > :10:04.by comments from US President-elect Donald Trump about
:10:05. > :10:06.the currency being "too strong". In Europe markets have opened
:10:07. > :10:12.and after the pounds Samira Hussain has the details
:10:13. > :10:26.about what's ahead More banks will be reporting
:10:27. > :10:29.earnings on Wednesday including Goldman Sachs and Citigroup. Like
:10:30. > :10:33.other big US banks Gold man's trading business is expected to have
:10:34. > :10:38.benefited from volatile markets around the US Presidential
:10:39. > :10:42.elections. And executive of Citigroup, the most international of
:10:43. > :10:48.banks, they will be asked about global trade prospects during the
:10:49. > :10:52.presidency of Donald Trump who said he will rework trade agreements. In
:10:53. > :10:58.non banking earnings news, if you are a fan of shows like The Stranger
:10:59. > :11:02.Things Or The Crown. You are likely to be contributing to the success of
:11:03. > :11:06.Netflix. Wall Street will be looking to see how many domestic and
:11:07. > :11:12.international customers the streaming service added in the last
:11:13. > :11:18.quarter. David Davis, who is the UK Brexit
:11:19. > :11:21.minister, if you want to describe him as that, has been talking to the
:11:22. > :11:25.BBCment this is what he had to say about the UK leaving the European
:11:26. > :11:29.Union. So basically, saying that we will, the UK, will seek a customs
:11:30. > :11:43.deal that's as frictionless as possible. Yes, he said frictionless!
:11:44. > :11:46.As frictionless as possible. That's another line from the David Davis
:11:47. > :11:47.interview that's under way at the moment.
:11:48. > :11:48.Joining us is Jane Sydenham, Investment Director,
:11:49. > :11:58.Every single detail is being picked up on at the moment as what does
:11:59. > :12:03.this mean, how will the process go? It is not easy to predict at all, is
:12:04. > :12:06.it? No, not at all. We are in unchartered territory really in
:12:07. > :12:12.terms of, we haven't been here before. We have got no reference
:12:13. > :12:16.pointment and normally investors can restore back to some historic
:12:17. > :12:20.precedent. David Davis saying we want it to be as frictionless as
:12:21. > :12:23.possible and yet you heard Theresa May saying if we don't get the deal
:12:24. > :12:30.we want, we're going to walk away. It is interesting, isn't it, the
:12:31. > :12:34.different angles? We would like it to be smooth, they are trying to set
:12:35. > :12:38.boundaries for the best outcome and the worst outcome and hoping that
:12:39. > :12:42.somewhere in the middle is the final outcome.
:12:43. > :12:46.It feels like for the last couple of weeks, every time we've talked about
:12:47. > :12:49.the markets, we have talked about politics, it is about Brexit and it
:12:50. > :12:52.is about Trump. Yesterday we had inflation figures out in the UK and
:12:53. > :12:55.it was higher than expected and maybe it is time we start to look at
:12:56. > :12:59.these indicators and move away from politics for a bit? I think that's
:13:00. > :13:02.right. There has been a transition taking place since July of last
:13:03. > :13:07.year. Inflation has been gradually ticking up. Partly in the UK that's
:13:08. > :13:11.because of currency weakness, partly because it is employment is fairly
:13:12. > :13:15.full and partly it is because energy prices are rising, but the impact
:13:16. > :13:19.that has on fixed interest investments and on the costs of
:13:20. > :13:23.borrowing, on how investors think about the stock market and which
:13:24. > :13:27.companies do well or badly, is changing quite dramatically. It is
:13:28. > :13:33.also having an impact on food prices. Premiere Foods saying we're
:13:34. > :13:37.going to make less. Its shares down 10% on the news, on its profit
:13:38. > :13:43.warning? Yes, whether companies are able to pass on the price rises to
:13:44. > :13:45.their consumers, whether they have to absorb them themselves and
:13:46. > :13:49.whether they can negotiate with suppliers, it is a much more
:13:50. > :13:54.uncertain world. There was the Marmite wars? Absolutely. Any
:13:55. > :13:58.cross-border trade is much more complicated than it was. All right,
:13:59. > :14:05.Jane, you will return later. We'll find out if Jane is a master
:14:06. > :14:08.builder. I think you are. I'm definitely a master builder!
:14:09. > :14:11.Still to come, Bank of America has over 210 thousand employees
:14:12. > :14:15.We're going to be asking their chief technology officer how she keeps
:14:16. > :14:17.them all safe from cyber attacks and what are her hopes
:14:18. > :14:24.You're with Business Live from BBC News.
:14:25. > :14:32.Mobile phone company EE has been fined ?2.7 million for overcharging
:14:33. > :14:37.The fine is for fundamental billing errors which included
:14:38. > :14:42.customers being overcharged by as much as ?250,000.
:14:43. > :14:45.Lindsey Fussell is the Consumer Group Director at Ofcom.
:14:46. > :14:48.She joins us now from our Westminster studio.
:14:49. > :14:55.Give us a bit of background into the fines. It is not just the fact that
:14:56. > :14:57.the customers were overcharged, but initially when you looked into it,
:14:58. > :15:08.EE weren't going to refund them? We all rely on big companies to do
:15:09. > :15:12.the most basic thing, get our phone bills right. During our
:15:13. > :15:17.billing rules, not just once but billing rules, not just once but
:15:18. > :15:22.twice that is why we have given out this fine, as well as requiring them
:15:23. > :15:26.to reimburse all the consumers affected. In terms of where the
:15:27. > :15:31.money goes, it goes to the Treasury. There were thousands of customers
:15:32. > :15:39.where it could not be figured out who they were. What happens for
:15:40. > :15:43.them? We are glad that EE after our intervention have tracked down the
:15:44. > :15:47.majority of customers. We are encouraging them to find every one
:15:48. > :15:52.of those customers and make sure they are refunded. We have seen some
:15:53. > :16:01.significant finds from Ofcom this month. Is the regulator flexing its
:16:02. > :16:03.muscles? We think that customers throughout the communication
:16:04. > :16:06.industry deserves the highest possible standards of customer
:16:07. > :16:10.service. That includes the most fundamental thing, people getting
:16:11. > :16:15.their bills right. We won't hesitate to step in and act on behalf of
:16:16. > :16:19.consumers, where we see things going wrong. Do you think we will get to a
:16:20. > :16:24.point where you do not need to dish out these huge fines to these
:16:25. > :16:31.companies? We would certainly hope so. We know that 90% of people, nine
:16:32. > :16:34.out of ten, are happy with their mobile phone providers. We'll soon
:16:35. > :16:38.know how crucial mobile phones are to the way we all live and work
:16:39. > :16:42.these days. Companies should be aware that where they get these
:16:43. > :16:46.fundamental things wrong they can expect to be on the receiving end of
:16:47. > :16:48.these kinds of hefty fines. Thank you no much were taking the time to
:16:49. > :17:01.join us this morning. Lots of corporate news today. Good
:17:02. > :17:08.news for Burberry as well as lots of profit warnings.
:17:09. > :17:18.A mixed reaction to the statement by Theresa May that Britain will not
:17:19. > :17:19.remain in the single market. She insisted the UK
:17:20. > :17:24.could not be half in, half out. More on the website.
:17:25. > :17:27.A quick look at how markets are faring.
:17:28. > :17:35.The European markets have been open for a little while. The FTSE is up a
:17:36. > :17:43.tiny bit. There have been some quite erratic falls by stocks. Look at the
:17:44. > :17:46.dollar/ pound. As we said, yesterday, it had its birthday on
:17:47. > :17:50.the currency market since 2008. We're all living a lot more
:17:51. > :17:53.of our lives online these days. But how secure do
:17:54. > :17:55.we feel about that? Hardly a day goes by without news
:17:56. > :17:58.of another major cyber attack - with hackers targeting everything
:17:59. > :18:01.from our emails to our bank accounts And big companies are ALSO
:18:02. > :18:03.in the firing line. The cost to the global economy
:18:04. > :18:06.is huge - approximately And that figure is expected
:18:07. > :18:10.to hit an astonishing That's caught the attention
:18:11. > :18:16.of one Donald J Trump - who says cyber-security will be
:18:17. > :18:19.a top priority when he gets So, how on earth do we keep
:18:20. > :18:25.up with the constantly Cathy Bessant is Chief Technology
:18:26. > :18:41.Officer at Bank of America Thank you very much for taking the
:18:42. > :18:47.time to join us this morning. Is cyber security something that keeps
:18:48. > :18:52.you awake at night? Absolutely. 24/7, we have to be on our toes,
:18:53. > :18:57.focused on protecting customers and our company. As you just said, we
:18:58. > :19:02.spend at a Mendis amount of resources and bring in a tremendous
:19:03. > :19:06.amount of talent to do that. It is critical for any organisation, but
:19:07. > :19:11.certainly for a bank. We could name several companies, big names, global
:19:12. > :19:16.names, which have become a victim of this. Information and data are
:19:17. > :19:26.certainly important to protect, no question about it. For a financial
:19:27. > :19:28.institution, a bank, we also want to protect the movement of money and
:19:29. > :19:32.the protection of our customers, depositors and investors cash. What
:19:33. > :19:37.do you think needs to be done? Do businesses need to do more question
:19:38. > :19:42.to governments need do more? I think we all have to do more. As
:19:43. > :19:46.individual consumers or companies, we have to protect ourselves as we
:19:47. > :19:51.access payments and financial systems. Banks have to protect their
:19:52. > :19:55.own capabilities but also work to protect customers and be on the
:19:56. > :19:58.leading edge of defensive technologies. And I think there is a
:19:59. > :20:03.real place for government in this mix. We need a legal structure that
:20:04. > :20:08.works, infrastructure and power grids are strong and protected. This
:20:09. > :20:16.is an ecosystem where we're only as strong as our weakest link. It is
:20:17. > :20:20.wide collaboration is the ball game. What is the obstacle to that
:20:21. > :20:23.collaboration? Our government is on-board enough? This is an
:20:24. > :20:29.international team effort that needs to be done here, isn't it? It really
:20:30. > :20:33.is. It does not work for one country to do it in a vacuum. The threats
:20:34. > :20:38.come from countries into other countries. Threats are really
:20:39. > :20:43.cross-border. It requires the highest level of cooperation. No
:20:44. > :20:46.individual department and any individual government but really
:20:47. > :20:50.cross department and cross-border governmental cooperation. It is
:20:51. > :20:57.tough. No question that we are trying to learn new ways of doing
:20:58. > :20:59.business together, protecting each other, protecting ourselves. That
:21:00. > :21:04.requires a new, social and commercial set of contract, if you
:21:05. > :21:08.don't mind the word. You are a regular at Davos. How was the
:21:09. > :21:12.atmosphere there this week? The Chinese premier has been out for the
:21:13. > :21:18.first time. No representative from the US administration. We have been
:21:19. > :21:22.hearing from two Reese eight about Britain's exit from the European
:21:23. > :21:27.Union. We had a conflict about detection is. What is the atmosphere
:21:28. > :21:32.like? I have been pleasantly surprised. There is an optimistic
:21:33. > :21:36.atmosphere, certainly in recognition of all of the challenges you
:21:37. > :21:42.mentioned. The spirit of cooperation, a spirit of ensuring
:21:43. > :21:45.that economic growth is pursued responsibly and equitably. The
:21:46. > :21:51.dialogue has a cautious optimism to it. A full recognition of the things
:21:52. > :21:56.we all face. I think a spirit of resilience that says these things
:21:57. > :22:00.can and must be worked through stop I have been very pleased with the
:22:01. > :22:04.calibre of the dialogue and the engagement. I believe our
:22:05. > :22:10.administration will step up in ways that make it a constructive part of
:22:11. > :22:14.the dialogue as well. In terms of the year ahead, this time last year
:22:15. > :22:18.we did not realise that the UK would choose to leave the EU. We did not
:22:19. > :22:23.realise that Donald Trump will become the next president of the
:22:24. > :22:27.United States. It is an uncertain period, isn't it question what it is
:22:28. > :22:33.difficult for business leaders to gauge what to do next. I think we
:22:34. > :22:38.have to be extremely focused on trust. Not just the trust of our
:22:39. > :22:43.customers and clients but the trust of the marketplace and communities
:22:44. > :22:48.as a whole. If anything, the last year has taught us. Last year we
:22:49. > :22:52.were talking about $30 a barrel oil price will do we have come a long
:22:53. > :22:57.way. If the last year has taught us anything, I believe it is that our
:22:58. > :23:01.institutions have to focus every day on the building of trust and the
:23:02. > :23:07.bridging of social and economic divide. All right. Thank you so much
:23:08. > :23:10.for joining as. Chief technology officer at Bank of America, who is,
:23:11. > :23:21.of course, in Davos. Jane has joined as again to talk
:23:22. > :23:26.about what is in the business news. We'll get to Lego in a second. China
:23:27. > :23:30.Daily on its front page has the president being at the World
:23:31. > :23:37.Economic Forum for the first time. Hopefully it will load up the
:23:38. > :23:42.pictures for us. It is almost ironic. The Chinese premier is the
:23:43. > :23:46.keynote speaker at Davos, which is all about capitalism and
:23:47. > :23:51.globalisation, and yet there is no one there from the United States.
:23:52. > :23:56.What a turnaround! I think it is the biggest delegation from China ever.
:23:57. > :24:00.In the last decade or so, China has put into place a lot of
:24:01. > :24:05.infrastructure for trade. Currency trading hubs in major cities, the
:24:06. > :24:08.bond market, access to foreign exchange will stop all of these
:24:09. > :24:14.building blocks will stop this is a great opportunity for them. They are
:24:15. > :24:21.seeing an opportunity here and making the most of it. Absolutely.
:24:22. > :24:27.Very interesting. We have had some really good tweets. Cambridge
:24:28. > :24:32.University is advertising for a professor of Lego. You have three
:24:33. > :24:36.more days to apply. Lego can inspire future architects and engineers,
:24:37. > :24:41.carpenters and make creators out of us all. It is relaxing fun. Tom says
:24:42. > :24:50.he thinks he chose the wrong degree and should have done Lego. I should
:24:51. > :24:58.have done Lego. So, Lego is sponsoring this professor of play at
:24:59. > :25:05.Cambridge University. I am applying, straight to the front of the queue.
:25:06. > :25:10.It is about investigating the effects of children in early years
:25:11. > :25:15.education and how that helps lateral thinking and so on. But, I am sure
:25:16. > :25:20.we can all benefit from play. Maybe company should have some Lego in the
:25:21. > :25:25.cafeteria is not just Coffey and fruit. I am sure that is on the
:25:26. > :25:32.minds of those who run companies like Google. Stop bouncing up and
:25:33. > :25:37.down on a space hopper. The Donald Trump effect is not so beneficial
:25:38. > :25:42.for Tiffany 's. Next to Trump Tower, sales are down for the people cannot
:25:43. > :25:48.get into the store either because of security reasons or protesters. A
:25:49. > :25:51.real economic effect of the new president.
:25:52. > :26:19.Good morning. Very little change on the weather front in the last 24
:26:20. > :26:20.hours. For most of us, once again it is to be a