24/01/2017 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Rachel Horne.


The United States pulls out of what could be one of the world's


biggest free trade deals, but Australia and New Zealand


says that doesn't mean its dead in the water.


Live from London, that's our top story


The Trans-Pacific Partnership was set to cover 40%


Will the other 11 nations go ahead without the US? Or can it be


replaced by bilateral deals that Donald Trump says he wants?


despite corruption allegation and exploding phones, Samsung


records its highest quarterly profit in four years.


And we'll be getting the inside track on the wearable


tech which doesn't just track your heart rate


but also tells a woman when she's at her most fertile.


When you listen to music do you think about the performer?


As Jay Z sells a stake in his artist led music streaming service, Tidal,


we want to know, do fans care about the artist or the access?


Thank you already for those of you who have tweeted about Jay-Z,


nothing we can say out loud on the BBC, so send in some comments we can


read out! Let's first of all start with what is going on in terms of


global trade. The United States are out,


but Japan, Australia and New Zealand say their big free trade deal


can go ahead anyway. The Trans-Pacific Partnership


was aimed at boosting the economics of 12 nations around


the Pacific Ocean. But the new US President Donald


Trump has used his first working day in the White House to sign


an executive order pulling The Trans-Pacific Partnership


covered about 40% of the world's economy and could


have added $100 billion That was what they said and


predicted. It was signed by 12 nations


in the Pacific area at a ceremony in New Zealand


last year. The painstaking negotiations


took seven years, but one reason implementation


was delayed was the failure China was the biggest


economy to not be included, and it was widely viewed


as a way to cement trade relations without


Beijing's influence. now wants to negotiate trade deals


on a country-to-country basis, with a 30-day cancellation clause


"in case somebody misbehaves". Here's what he said


about the withdrawal. We have been talking about this for


a long time. OK. A great thing for the American


worker, what we just did. That was the President of the United States,


Donald Trump. With me is Savita Subramanian,


head of US equity and quantitative strategy at Bank of America


Merrill Lynch Global Research. You've got a longer title than he


has! Let's go back to basics, why has Donald Trump polled the US out


of this deal? I think he just said it, it is about US jobs, and he is


wasting no time in fulfilling some of his campaign promises to create


US jobs growth. So I think that, you know, President Trump is focused on


the US worker, he is focused on bringing back jobs to the US, and


the TPP represented a threat to the average US worker. I think this is


another example of a policy that is good for the mainstream, not


necessarily good for Wall Street, because if you think about the US


stock market, most of them are multinational companies that have


expanded margins from off shoring their businesses and setting up


facilities overseas. But I think that Trump's motivation and input is


here is jobs growth, that is what he is focused on. And is that the


feeling, that it will work? We had figures last week suggesting a huge


proportion of the jobs that America has lost in recent years are due to


automation, machines - rather than outsourcing to other countries. It


is a complicated problem, and the thread of global overtaking the US


is not the only reason that jobs have gone awake in the US. Man has


been replaced by machines in many industries, which is inherently


deflationary, but I think what the administration is focused on at some


level is creating some healthy inflation which, you know,


protectionist policies generally, initially, inflationary, and good


for the economy. The risk is, we import a little under $500 billion


worth of goods from China. Our economy is made up, 15% of it, is


exports. So the risk is that, will this cramp growth down the road? It


is good for wage inflation and the US consumer, it creates confidence,


but will it actually hurt growth down the road? That is what we are


more worried about from the market perspective. One of Obama's main


drivers with the TPP was to try to encourage American influence in this


region, and China was not included. Is Donald Trump running the risk of


being like the bride who leaves her groom at the altar, everyone else


has stepped forward, they are ready to sign the deal, and when he


doesn't turn up, in terms of damaging relationships with other


countries and leaving a gap for China to come in, is that a concern?


I'm not a political historian or political economist, but I think


that, you know, certainly the rationale for TPP initially was to


sort of prohibited that thread. I think, from a market perspective,


what this represents is risk to multinationals, and it is probably


too soon to say whether the other too soon to say whether the other


countries can bind together and create a realistic and powerful


union amongst themselves if the US is neglected from it and we try to


negotiate one-time deals, if we have enough negotiating power, this could


work. OK, thank you very much for joining us.


Let's have a look at some other stories.


Shares in BT have fallen by 15% on the news it has taken a hit of


around $180 million after uncovering inappropriate accounting behaviour


at its Italian division. The telecoms giant said


an internal review had found a complex set of improper sales,


purchase and leasing transactions. BT has now cut its revenue,


earnings and free cash flow forecasts for this year


and next year. So shares in London down by 15% on


that story. Yahoo has posted a 15% rise


in revenues to nearly $1.5 billion for its fourth quarter,


compared to the previous year. is being investigated by the US


Securities and Exchange Commission Yahoo is in the process


of being bought by US telecoms giant Verizon


for about $4.8 billion but has now


said the deal won't be completed until at least the second


quarter of this year. And back to South Korea,


where LG Display is also doing well. It reported a record fourth-quarter


operating profit of just over $778 million due to


a pick-up in panel prices. The world's biggest liquid-crystal


display maker said the profit was caused by the upward trend


of panel prices and We have covered Samsung a lot on


this programme recently, and for all the wrong reasons, including


exploding phones and corruption claims surrounding the boss of the


firm. Today we have some good news, because despite all of that, the


electronics giant, that side of the business, saw profits jump by $7.2


billion in the last three months of last year. Mariko Oi is in


Singapore, I bet they are breathing a temporary sigh of relief, for now


at least, at Samsung. Indeed, Sally, I think it is fair to say that not


many were expecting such strong numbers, but Samsung managed to more


than double its operating profit in the last three months of last year.


And that is because it is important to remember that Samsung doesn't


just make smartphones, we have been talking about the exploding


batteries of the galaxy note seven, but Samsung also makes chips, as


well as panels, and its semiconductor unit did very well,


and it contributed more than half of the company's quarterly profit, and


when it comes to smartphone profits, while consumers' trust has not been


restored yet, some of them started buying cheaper Galaxy phones, which


helped their profit as well. Challenges still remain, including


the corruption scandal surrounding the company's boss. Thank you very


much, Mariko, that is the latest on Samsung.


In Japan, the markets down, weak dollar, strong yen, do I need to say


it again? This is how things are going generally, the Dow Jones a


little bit flat, but not far off that 20,000 mark. A bit further away


than it was a few weeks ago. A bit of a disappointment about Trump in


terms of not enough news about pushing growth, pushing jobs to the


US. Let's look at Europe, treading water to a degree at the moment, we


have mentioned BT, down in London for very specific reasons, but


everyone keeping an eye on the pound and the Supreme Court decision,


which is due in about 50 minutes' time, that is about whether


Parliament will get a say on the triggering of the Brexit


negotiations. News out of France about services sector manufacturing,


a bit of a drop-off in manufacturing sector in France, but still showing


growth. Let's look ahead to the US, Samira Hussain is on Wall Street


today. America's number one


wireless carrier, Verizon, will be reporting earnings and it's


expected to report yet another decline in quarterly


revenue, but analysts, will be eager to hear about any


updates to Verizon's deal to purchase Yahoo


and whether the recent data breaches Lockheed Martin, the Pentagon's


number one weapons supplier, is expected to report a rise


in fourth quarter revenue helped by higher sales


from the F-35 programme, but it's that programme that drew


fire from President Trump Interestingly,


the head of Lockheed Martin was one of a dozen business leaders


that met with President Trump at the White House on Monday


discussion tax reform for corporations and reducing


regulations that impede Thank you, Samira. Joining us is


Jeremy Stretch, we wanted to start with Turkey, Crete interest rate


decision due in a couple of hours, and there is a real conflict between


the government calling for interest rates to be dropped to encourage


spending, an economist saying, no, we need to curb inflation, give us


the figures. Inflation is running just above 8.5%, the central bank


target is 5%, and it is going up because of the fall in the currency,


it has fallen by 6% against the dollar already this year. We have


commodity price pressures as well, which are amplified when you


translate them into Turkish prices. So inflation moving and very


dramatically. That should mean interest rates will go up, even by


at least 1% today, but the government is saying something


completely different, putting a great deal of pressure on the


central bank governor, so the independence of the central bank is


really under threat, just adding to the uncertainty for international


investors. This is the government of President Erdogan, which is one type


of leadership, but just to say that Turkey, we are familiar with all the


headwinds, mostly geopolitical. Indeed, we have seen a substantial


deterioration in the economic backdrop, irrespective of the


currency movement, a substantial fall in GDP in the third quarter,


and with the falling currency, the weakness of the economy, it really


does and align the febrile atmosphere in the country, when of


course you have the inherent political risk which is making


investors and stable beyond just the economic dynamics. Another big


announcement this morning which could impact the markets is the


decision on whether or not the UK Government can go ahead with Brexit


from the High Court, what sort of reaction do you think the markets


are going to have to that? After the speech from the Prime Minister last


week, you could argue that these events have been somewhat


superseded, but that is not totally the case, because they could be a


risk that the devolved parliaments are going to be given some degree of


say by the Supreme Court. If that were the case, the old Brexit


timetable could be thrown out of kilter somewhat, and accordingly


that March 31 deadline that the Prime Minister has self-imposed


would potentially be under threat, so that would push the whole hard


Brexit story further into the long grass and could encourage a sterling


rally. Because Scotland and Northern Ireland, Wales as well, all saying


they don't want Brexit, and that would be their opinion if they were


given the opportunity by the Supreme Court. Of course, but not only that,


the picture is even more complicated in Northern Ireland because of the


upcoming election, so that delays the process even further. If there


were a role for the devolved parliaments, that throws the


timetable into doubt. If not, if we are merely left with saying, we're


going to go back to Parliament and the Government puts in a short bill,


pushing through with it quickly, than the market reaction should be


relatively modest, but it is a case of the devil in the detail this


morning. OK, Jeremy Stretch, thank you for joining us this morning.


You're with Business Live from BBC News.


And now a look at some of the stories from around the UK.


We have mentioned the Brexit and the Supreme Court ruling.


Dixons Carphone, Britain's largest electricals


and mobile phone retailer, beat forecasts for Christmas trading.


The group's chief executive officer, Sebastian James, joins us now.


Thank you for making the time to see us. I'm sure you're pleased to see


us given the results you've issued. Why do you think the results went


up? Christmas has become promotional trading. Since Black Friday took


off, it is about can you put fantastic deals in front of


customers. Because we're big and we plan this a year ahead, we put


ground-breaking offers in front of people and I think they reacted well


to that. It is about pricing, isn't it? With sterling weakness, are you


poised to put your prices up because you will be forced to, frankly? We


are a bit different to other industries because our products


actually deflate over time. So the same TV, next year is likely to cost


than it did this year. On the other hand new technologies come in and


they are not really comparable. Although it is a mathematical truth


that it will take more pounds to buy more dollars and therefore the kit


that we buy, I don't think it will feel inflationary to our customers.


You said that generating a successful Christmas means planning


from January. Have you started planning from now and are you going


to stick to Black Friday? We have seen lots of companies, some big


named companies who didn't get involved this year, it did well for


you this year, but is that something that's going to continue to be part


of your strategy? Yes, we definitely think it is. We love Black Friday.


We plan it well ahead. We work closely with our suppliers and we do


huge volumes during Black Friday. We sold a Dyson cordless hoover every


five seconds during our Black Friday period and it is a promotion that we


love. For now, thank you for your time,


the boss of Dixons car phone. That's a company that is doing well. Good


results. Two companies that have come out with bad thus that have hit


markets, BT and easyJet. We've mentioned BT. EasyJet though, its


shares dropping 7%. It has warned again about its profits being hit by


the weakness of sterling. EasyJet had to warn before today and another


warning coming through from the low-cost carrier. More news on our


website. Australia and New Zealand have said


they believe a big free-trade deal, which America's President Trump


has just abandoned, The Trans-Pacific Partnership


would have covered about 40% of the world economy if all 12


signatories had gone ahead. Will the 11 go ahead regardless? The


markets are threading water. Pretty flat. Some sharp movements from


companies like easyJet and BT, but keep a close eye on London and the


pound sterling as we get that result from the Supreme Court which is due


in about 40 minutes. Now let's get the inside track


on the wearable tech You can use devices to track


everything from physical activity to sleep and exposure


to sunlight, and it's women are the leading consumers


in the wearable-tech health space. The wearable tech market


exceeded $2 billion in 2015, 61% of all devices in


the wearable tech market are health trackers,


and women make up most users. Ava Fertility is one company hoping


to take advantage of these numbers. So they have developed


a bracelet that tracks a women's fertility simply


by monitoring heart rate. The company claims it can detect


fertile days in a women's menstrual Joining now is the co-founder and


Chief Executive of the firm Ava Science which makes the tracking


device. She has got it on. You were just looking at it. So what's so


special about this device? Ava is really the first wearable device


that you can use to track your menstrual cycle. So far, when a


woman wanted to track her menstrual cycle, she had to, you know, pee on


sticks ten times a month and get up to take her temperature and it was


really difficult and really inaccurate and now we've solved this


with a wearable. Just hold it up to the camera, Ava, so the viewers can


see it. My first thought was, are you going to wear that? It is an


obvious sign to everyone around you that you're trying to make a baby


and for a woman, a career woman, that maybe not the signal you want


to give to your bosses? Ava is only worn during the night. So you only


wear it while you're sleeping and during the nine it tracks


parameters. What you do is really simple. You wear it and in the


morning you sync with your phone and you have all the information on your


phone. This is an emotive area, people trying for a baby. Sometimes


they can feel vulnerable and they will try anything to make it work.


What scientific evidence have you got to try and back up your device?


So, really, our researcher is the core of what we're doing as a


company. We have finalised a first clinical study in Switzerland where


we can show 89% accuracy. We are running our second clinical study


and to further improve the results and to broaden the scope of the


product. And venture capitalists are backing you, you've raised $10


million, you're established in the US. Thousands have bout this device


and you're launching in the UK and Europe. Tell us what else can it


tell you? Can it tell you for example what sex for example? That


kind of thing? Rachel and I have got six boys between us! You were really


successful in doing what we're doing! It doesn't tell you that,


does it? That's just a mystery? T-actually is a mystery. At the


moment there is no research how you can determine the sex of your baby,


but really Ava is helping you to not only detect your fertile days, but


gives you insights in other health per ram terse and it helps you


understand how you sleep and your stress levels and the hormonal


changes during your menstrual cycle, if you want to understand what signs


your body is sending you all the time. Very fascinating. Thank you


for coming in. Lots of interest in there I'm sure.


Here is how to keep in touch with us.


The Business Live page is where you can stay ahead with all the day's


breaking business news. We'll keep you up-to-date with all the latest


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on Facebook. Business Live on TV and online whenever you need to know.


So far the tweets we've received from you about Jay Z and Tidal, we


can't say out loud because they are too rude. Near negative. Tidal was a


music streaming service launched at the same time as others like


Spotify, but it was regarded as a vanity project for Jay Z and


Beyonce. You got Beyonce's music and that was the reason to do it, but it


was a bit of a flop commercially and it was losing $28 million, it


claimed it had three million users and Spotify has 40 million users and


most people thought it only had about one million. They pitched it


as this is the artist leading the way here, we're fighting against


Spotify that's ripping us off? Artists hate Spotify. It is hard to


get money ot of Spotify unless you get millions of plays. Lots of


artists including Taylor Swift have gone away from Spotify claiming it


doesn't pay them enough. The viewers are not bothered anyway? No, I don't


think they are. What they want is cheap music. They just want the


songs. And preferably for free. Let's talk about a Happy Meal? A-guy


charged with reviving McDonald's in the States is a Brit who did very


well turning around McDonald's ten or 15 years ago. He brought in the


fresh food and the better coffee and he was promoted by McDonald's to do


the same thing in America two years ago, he replaced a guy called Don


Thompson. One of the things he does is does an all-daybreak fast. It


hasn't really worked. Sales are down 1.3%. Wow.


Give him time. That's it from Business Live. There will be more


business news throughout the day. See you soon. Bye-bye.


Good morning. We've had contrasting weather


conditions so far today. It has been mild and cloudy to the north and the


west, but fog still an issue, not as widespread as yesterday. However, in


one or two spots it may linger for much of the day and if that happens,


well then, temperatures will struggle


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