18/01/2017 BBC Business Live


Similar Content

Browse content similar to 18/01/2017. Check below for episodes and series from the same categories and more!



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


Download Subtitles