24/01/2017 BBC Business Live

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.

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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