18/01/2017 BBC Business Live

This is Business Live from BBC News with Rachael Horne

Weighing up the "wish-list", business leaders give us their take

Live from London, that's our focus today on Wednesday, 18th January.

Businesses have praised Theresa May for offering clarity with her vision

of Britain's post-Brexit place in the world, but will she be able

Also in the programme, Samsung in the dock.

A court in Seoul is set to decide if it will detain the company's boss

for offering millions of dollars in bribes to get approval

And we have the latest on the markets after Tuesday

when the pound enjoyed its best day since 2008.

And we'll be live at the World Economic Forum in Davos

to get the inside track on how the world's biggest institutions

are dealing with the challenges of cyber security.

The chief technology officer at Bank of America will be joining us.

Also Cambridge University is recruiting a professor of Lego.

So we want to know if the ubiquitous building blocks are now more

Today, for the first time ever, a freight train from China

It wasn't intended as a symbolic statement,

but with the British Prime Minister now confirming the UK must leave

the European single market, the train's arrival does illustrate

that post-Brexit Britain may need to look further afield

Theresa May used her much anticipated speech yesterday

to announce the UK's priorities for upcoming Brexit negotiations.

Leaving the single market means Britain will lose

the right to trade with the European Union

Despite this, the UK Prime Minister says the Government will negotiate

for the best possible access to the trading bloc.

Mrs May also said Britain will aim for a new customs union

This would allow the UK to form new relationships

with non-European trading partners, but it could impose higher costs

The market reaction told another story with the value of the pound

rocketing after Theresa May said she would allow Parliament

Joining me now is Allie Renison, head of Europe and trade policy

Good morning. So what is the institute's response to her speech?

Well, I think, it is welcome she provided certainty and clarity

around the number of scenarios, that potentially businesses have to plan

for. It is to be expected to some degree, we have to take at face

value, not only what the Prime Minister has been talking with

respect to controls on free movement, but the EU leaders saying

you can't be in the single market and have those controls and the

concern was that given there is a two year time con trant with Article

50, do you want to go down the road of trying to negotiate controls

within the single market, find out you can't do it and then go to Plan

B or do you want to start with Plan B in a sense right away? She was

certainly talking tough and many would argue that that runs the risk

of there being a bitter negotiating process between Europe and the UK

and yet you've got David Davis today saying to the BBC, the Brexit

Secretary, if you could describe him as that, there is so much common

ground. There is so many reasons to do good trade between the UK and

Europe. He's confident negotiations will go well. It is all about that,

isn't it, how the negotiations go? We are in what some would call the

fondy war period before we have started, the triggering of Article

50. The hope is and this is what the UK is trying to play for is that

economic and commercial interests become the order of the day very,

very quickly as opposed to a focus from the EU side on political sort

of protecting the unity of the 27 so to speak. In the meantime,

businesses are probably going to prepare now, aren't they, for worst

case scenario, ie, no access to the single market. If that's the case

for the City of London, for the car industry, they have to make some

serious decisions? Yes, I think that business particularly now with the

single market ruled out the what the single market provides is that

automatic predictability about single market access, you can get

the same access, but it is subject to negotiation. I think what you

will start to see is businesses put in place the contingency plans

particularly if financial services, we have seen that Lloyds said they

will begin opening up a subsidiary in other EU country and what

business has to do is plan for the worst case scenario and hope for the

best. What do you think the outcome will be and how long is this process

going to take? Many are saying it will be much longer than the two

years that we think it will take? Well, that's one of the big issues

that comes away in terms of question marks from the speech yesterday is

that we're glad to see from that there will be an implementation

phase after the agreement is concluded, but what happens if the

negotiation goes on beyond the two year window? I know I'll talk to you

gun in the next few years. Thank you for coming in from the Institute of

Directors. US regulators claim

that the world's biggest producer of mobile phone chips,

Qualcomm, forced Apple into an exclusivity agreement

in return for lower fees. The Federal Trade commission

is suing Qualcomm for unfair practices in the way it

licenses its technology especially the processors used

in cell phones and other devices. The company has denied

the allegations saying Rolls-Royce has apologised

unreservedly after being found to have conspired to corrupt

or failed to prevent bribery by Rolls-Royce in China,

India and other markets by the UK's The British engineering giant

will pay $800 million to settle corruption

cases with UK and US authorities One of Donald Trump's closest

advisers has told the BBC that the US would win a trade

war with China. Former Wall Street banker,

Anthony Scaramucci, warned that if China chooses to retaliate

when the Trump administration imposed tariffs on imports,

it would cost them "way more" The comments comes as the Chinese

president gave a staunch defence of globalisation

at the World Economic Shall we have a look at the tablet?

Yes. There are loads of great corporate stories on the tablet. I

don't mean great news. Some are bad news. But stocks are on the move on

the markets in London. So, that's basically illustrated here. Pearson

shares down 20%. Premier Foods shares plunging. All these companies

coming out with warnings today and we'll discuss them in more detail

later on, but Premier Foods makes Bisto and it is warning that its

profits will be 10% lower because food inflation costs are on the

rise. Very interesting given what's going on with regards to Brexit,

with regards to what we've discussed already in the programme and the

inflation figure that came out yesterday in the UK. We'll talk some

more about it later. The defacto boss of Samsung Jay Y

Lee arrived at a South Korean court earlier today where a judge

will decide whether he should be arrested over his alleged role

in a major corruption scandal. Tell us more about what happened

today and whether we have had a decision yet or not. Well, the

hearing has ended and Jay Y Lee, the head of Samsung was seen leaving the

courtroom as grim faced as he had arrived four hours earlier. He's now

on stand-by as he and the public waits for the results later this

evening. Prosecutors believe Samsung has committed bribery and has asked

Jay Y Lee, the head of South Korea's largest company to be jailed for.

The allegation is that Samsung gave millions of dollars in return for

the votes of national pension fund in a big and contested restuck

turing of the company. Last week Jay Y Lee was summoned as a suspect and

was questioned for almost 24 hours. Investigators said on Monday that

despite concerns, Mr Lee's arrest may have a negative effect on the

economy, but establishing justice was more important.

Thank you, Kevin. Asian markets are back up

following losses on Tuesday. The dollar fell overnight

against the yen, euro and the pound, partly

because sterling strengthened during British Prime Minister

Theresa May's speech about Britain's pending departure

from the European Union, also the dollar was weakened

by comments from US President-elect Donald Trump about

the currency being "too strong". In Europe markets have opened

and after the pounds Samira Hussain has the details

about what's ahead More banks will be reporting

earnings on Wednesday including Goldman Sachs and Citigroup. Like

other big US banks Gold man's trading business is expected to have

benefited from volatile markets around the US Presidential

elections. And executive of Citigroup, the most international of

banks, they will be asked about global trade prospects during the

presidency of Donald Trump who said he will rework trade agreements. In

non banking earnings news, if you are a fan of shows like The Stranger

Things Or The Crown. You are likely to be contributing to the success of

Netflix. Wall Street will be looking to see how many domestic and

international customers the streaming service added in the last

quarter. David Davis, who is the UK Brexit

minister, if you want to describe him as that, has been talking to the

BBCment this is what he had to say about the UK leaving the European

Union. So basically, saying that we will, the UK, will seek a customs

deal that's as frictionless as possible. Yes, he said frictionless!

As frictionless as possible. That's another line from the David Davis

interview that's under way at the moment.

Joining us is Jane Sydenham, Investment Director,

Every single detail is being picked up on at the moment as what does

this mean, how will the process go? It is not easy to predict at all, is

it? No, not at all. We are in unchartered territory really in

terms of, we haven't been here before. We have got no reference

pointment and normally investors can restore back to some historic

precedent. David Davis saying we want it to be as frictionless as

possible and yet you heard Theresa May saying if we don't get the deal

we want, we're going to walk away. It is interesting, isn't it, the

different angles? We would like it to be smooth, they are trying to set

boundaries for the best outcome and the worst outcome and hoping that

somewhere in the middle is the final outcome.

It feels like for the last couple of weeks, every time we've talked about

the markets, we have talked about politics, it is about Brexit and it

is about Trump. Yesterday we had inflation figures out in the UK and

it was higher than expected and maybe it is time we start to look at

these indicators and move away from politics for a bit? I think that's

right. There has been a transition taking place since July of last

year. Inflation has been gradually ticking up. Partly in the UK that's

because of currency weakness, partly because it is employment is fairly

full and partly it is because energy prices are rising, but the impact

that has on fixed interest investments and on the costs of

borrowing, on how investors think about the stock market and which

companies do well or badly, is changing quite dramatically. It is

also having an impact on food prices. Premiere Foods saying we're

going to make less. Its shares down 10% on the news, on its profit

warning? Yes, whether companies are able to pass on the price rises to

their consumers, whether they have to absorb them themselves and

whether they can negotiate with suppliers, it is a much more

uncertain world. There was the Marmite wars? Absolutely. Any

cross-border trade is much more complicated than it was. All right,

Jane, you will return later. We'll find out if Jane is a master

builder. I think you are. I'm definitely a master builder!

Still to come, Bank of America has over 210 thousand employees

We're going to be asking their chief technology officer how she keeps

them all safe from cyber attacks and what are her hopes

You're with Business Live from BBC News.

Mobile phone company EE has been fined ?2.7 million for overcharging

The fine is for fundamental billing errors which included

customers being overcharged by as much as ?250,000.

Lindsey Fussell is the Consumer Group Director at Ofcom.

She joins us now from our Westminster studio.

Give us a bit of background into the fines. It is not just the fact that

the customers were overcharged, but initially when you looked into it,

EE weren't going to refund them? We all rely on big companies to do

the most basic thing, get our phone bills right. During our

billing rules, not just once but billing rules, not just once but

twice that is why we have given out this fine, as well as requiring them

to reimburse all the consumers affected. In terms of where the

money goes, it goes to the Treasury. There were thousands of customers

where it could not be figured out who they were. What happens for

them? We are glad that EE after our intervention have tracked down the

majority of customers. We are encouraging them to find every one

of those customers and make sure they are refunded. We have seen some

significant finds from Ofcom this month. Is the regulator flexing its

muscles? We think that customers throughout the communication

industry deserves the highest possible standards of customer

service. That includes the most fundamental thing, people getting

their bills right. We won't hesitate to step in and act on behalf of

consumers, where we see things going wrong. Do you think we will get to a

point where you do not need to dish out these huge fines to these

companies? We would certainly hope so. We know that 90% of people, nine

out of ten, are happy with their mobile phone providers. We'll soon

know how crucial mobile phones are to the way we all live and work

these days. Companies should be aware that where they get these

fundamental things wrong they can expect to be on the receiving end of

these kinds of hefty fines. Thank you no much were taking the time to

join us this morning. Lots of corporate news today. Good

news for Burberry as well as lots of profit warnings.

A mixed reaction to the statement by Theresa May that Britain will not

remain in the single market. She insisted the UK

could not be half in, half out. More on the website.

A quick look at how markets are faring.

The European markets have been open for a little while. The FTSE is up a

tiny bit. There have been some quite erratic falls by stocks. Look at the

dollar/ pound. As we said, yesterday, it had its birthday on

the currency market since 2008. We're all living a lot more

of our lives online these days. But how secure do

we feel about that? Hardly a day goes by without news

of another major cyber attack - with hackers targeting everything

from our emails to our bank accounts And big companies are ALSO

in the firing line. The cost to the global economy

is huge - approximately And that figure is expected

to hit an astonishing That's caught the attention

of one Donald J Trump - who says cyber-security will be

a top priority when he gets So, how on earth do we keep

up with the constantly Cathy Bessant is Chief Technology

Officer at Bank of America Thank you very much for taking the

time to join us this morning. Is cyber security something that keeps

you awake at night? Absolutely. 24/7, we have to be on our toes,

focused on protecting customers and our company. As you just said, we

spend at a Mendis amount of resources and bring in a tremendous

amount of talent to do that. It is critical for any organisation, but

certainly for a bank. We could name several companies, big names, global

names, which have become a victim of this. Information and data are

certainly important to protect, no question about it. For a financial

institution, a bank, we also want to protect the movement of money and

the protection of our customers, depositors and investors cash. What

do you think needs to be done? Do businesses need to do more question

to governments need do more? I think we all have to do more. As

individual consumers or companies, we have to protect ourselves as we

access payments and financial systems. Banks have to protect their

own capabilities but also work to protect customers and be on the

leading edge of defensive technologies. And I think there is a

real place for government in this mix. We need a legal structure that

works, infrastructure and power grids are strong and protected. This

is an ecosystem where we're only as strong as our weakest link. It is

wide collaboration is the ball game. What is the obstacle to that

collaboration? Our government is on-board enough? This is an

international team effort that needs to be done here, isn't it? It really

is. It does not work for one country to do it in a vacuum. The threats

come from countries into other countries. Threats are really

cross-border. It requires the highest level of cooperation. No

individual department and any individual government but really

cross department and cross-border governmental cooperation. It is

tough. No question that we are trying to learn new ways of doing

business together, protecting each other, protecting ourselves. That

requires a new, social and commercial set of contract, if you

don't mind the word. You are a regular at Davos. How was the

atmosphere there this week? The Chinese premier has been out for the

first time. No representative from the US administration. We have been

hearing from two Reese eight about Britain's exit from the European

Union. We had a conflict about detection is. What is the atmosphere

like? I have been pleasantly surprised. There is an optimistic

atmosphere, certainly in recognition of all of the challenges you

mentioned. The spirit of cooperation, a spirit of ensuring

that economic growth is pursued responsibly and equitably. The

dialogue has a cautious optimism to it. A full recognition of the things

we all face. I think a spirit of resilience that says these things

can and must be worked through stop I have been very pleased with the

calibre of the dialogue and the engagement. I believe our

administration will step up in ways that make it a constructive part of

the dialogue as well. In terms of the year ahead, this time last year

we did not realise that the UK would choose to leave the EU. We did not

realise that Donald Trump will become the next president of the

United States. It is an uncertain period, isn't it question what it is

difficult for business leaders to gauge what to do next. I think we

have to be extremely focused on trust. Not just the trust of our

customers and clients but the trust of the marketplace and communities

as a whole. If anything, the last year has taught us. Last year we

were talking about $30 a barrel oil price will do we have come a long

way. If the last year has taught us anything, I believe it is that our

institutions have to focus every day on the building of trust and the

bridging of social and economic divide. All right. Thank you so much

for joining as. Chief technology officer at Bank of America, who is,

of course, in Davos. Jane has joined as again to talk

about what is in the business news. We'll get to Lego in a second. China

Daily on its front page has the president being at the World

Economic Forum for the first time. Hopefully it will load up the

pictures for us. It is almost ironic. The Chinese premier is the

keynote speaker at Davos, which is all about capitalism and

globalisation, and yet there is no one there from the United States.

What a turnaround! I think it is the biggest delegation from China ever.

In the last decade or so, China has put into place a lot of

infrastructure for trade. Currency trading hubs in major cities, the

bond market, access to foreign exchange will stop all of these

building blocks will stop this is a great opportunity for them. They are

seeing an opportunity here and making the most of it. Absolutely.

Very interesting. We have had some really good tweets. Cambridge

University is advertising for a professor of Lego. You have three

more days to apply. Lego can inspire future architects and engineers,

carpenters and make creators out of us all. It is relaxing fun. Tom says

he thinks he chose the wrong degree and should have done Lego. I should

have done Lego. So, Lego is sponsoring this professor of play at

Cambridge University. I am applying, straight to the front of the queue.

It is about investigating the effects of children in early years

education and how that helps lateral thinking and so on. But, I am sure

we can all benefit from play. Maybe company should have some Lego in the

cafeteria is not just Coffey and fruit. I am sure that is on the

minds of those who run companies like Google. Stop bouncing up and

down on a space hopper. The Donald Trump effect is not so beneficial

for Tiffany 's. Next to Trump Tower, sales are down for the people cannot

get into the store either because of security reasons or protesters. A

real economic effect of the new president.

Good morning. Very little change on the weather front in the last 24

hours. For most of us, once again it is to be a