:00:00. > :00:09.This is Business Live from BBC News with Rachel Horne and Sally Bundock.
:00:10. > :00:13.As President Trump tells car makers to build more vehicles in the USA,
:00:14. > :00:15.Mexico tries to keep the border open for business.
:00:16. > :00:36.Live from London, that's our top story on Wednesday, 25th January.
:00:37. > :00:38.Mexico's foreign and economy ministers head to Washington,
:00:39. > :00:41.but will it be the realities of modern manufacturing that make
:00:42. > :00:45.Also in the programme, the lowdown on Lego.
:00:46. > :00:48.It's one of the world's most successful toys,
:00:49. > :00:57.but with China rife with copycats, can the boss tell the difference?
:00:58. > :01:00.The European markets are open and they are up. Investors are looking
:01:01. > :01:03.optimistic. We'll be getting the inside track
:01:04. > :01:06.on private jets from the man fled Madagascar's civil war as a child,
:01:07. > :01:09.but soared on to sell planes And, as always, we'd love
:01:10. > :01:14.to hear from you about any Now Mexico seems to be the most
:01:15. > :01:37.important foreign country when it comes to Donald Trump's in-tray,
:01:38. > :01:39.now that he is US President. And in a few hours' time,
:01:40. > :01:42.Mexico's economy and foreign ministers are set to meet some
:01:43. > :01:46.of his top trade officials in Washington as they try to keep
:01:47. > :01:50.border open for trade. And the Mexicans appear to have
:01:51. > :01:54.conceeded that to do that. There will have to be changes
:01:55. > :01:57.to the Nafta trade deal NOw President Trump is pushing
:01:58. > :02:02.to bring more manufacturing He's already met with the heads
:02:03. > :02:08.of Ford, General Motors and Fiat-Chrysler, telling them
:02:09. > :02:10.they must make more Now the US is a key
:02:11. > :02:16.market for Mexico. Taking a look at this graph,
:02:17. > :02:20.you can see its exports to the US have surged since Nafta came
:02:21. > :02:22.into force in 1994. Mexico now sells more
:02:23. > :02:26.than $270 billion worth of goods Now it's thought talks
:02:27. > :02:34.between Mexico and the US will focus on so-called Rules of Origin,
:02:35. > :02:36.which limits the proportion of a product which comes
:02:37. > :02:43.from outside North America. Now if limits were
:02:44. > :02:45.tightened, it could boost But can this be achieved
:02:46. > :02:50.in production lines with incredibly complicated supply chains
:02:51. > :02:51.like the car industry? Dr Jagjit Singh Srai
:02:52. > :02:57.is head of the Centre for International Manufacturing
:02:58. > :03:08.at the University of Cambridge. Good to see you this morning. Good
:03:09. > :03:12.morning. Rachel outlining some of the key issues and there is a lot to
:03:13. > :03:16.discuss with regards to Mexico and the United States. The car industry
:03:17. > :03:24.seems to be the centre of it all, doesn't it? Most trade between both
:03:25. > :03:29.sides are within that industry? Absolutely, manufacturing and the
:03:30. > :03:38.automotive sector are closely linked and Mexico and the US are closely
:03:39. > :03:46.interlinked. You will probably know that automotive supply chains is not
:03:47. > :03:51.just where you assemble the car. That criss-crosses across borders.
:03:52. > :03:54.Bits of car, components, cross over the border several times before the
:03:55. > :03:58.final car is finished. It is a really complicated process when you
:03:59. > :04:01.look at the supply chain. So how simple is it for President Trump
:04:02. > :04:06.just to say, "Right, tariffs are slapped on here. We want nor jobs in
:04:07. > :04:14.the US." It is a very complicated picture. Firstly, we have automotive
:04:15. > :04:20.component manufacturers in the US supplying to Mexican car assembly
:04:21. > :04:25.plants and indeed, some reports say perhaps 30%, 40% of the cars coming
:04:26. > :04:30.into the US, from Mexico, have that US component. So they can be very
:04:31. > :04:35.much impacted if Mexican manufacturing facilities have to
:04:36. > :04:39.scale back due to the tariffs. If he is successful, President Trump, in
:04:40. > :04:43.his aim, ie perhaps putting tariffs on, he has not said anything about
:04:44. > :04:48.that since he became president, I might add, but there are reports
:04:49. > :04:53.today in the New York Times that there will be an executive order on
:04:54. > :04:57.the wall going on, the Mexican currency is falling today on that
:04:58. > :05:02.speculation and he has talked to the car-makers yesterday. If he is
:05:03. > :05:07.successful, what will the impact be for both Mexico and the United
:05:08. > :05:13.States and consumers as well? Well, if I pick up Mexico. The
:05:14. > :05:18.manufacturing facilities that have targeted the US market predominantly
:05:19. > :05:22.will have a significant trauma. They will have to scale back production.
:05:23. > :05:26.Some of it may not be economical going forward. So I think that's a
:05:27. > :05:32.pretty serious situation for those plants. There will be other Mexican
:05:33. > :05:38.plants however who have a global market agenda and Mexico has free
:05:39. > :05:44.trade agreements with dozens of countries and they perhaps will be
:05:45. > :05:47.less impacted. Going back to the US, those component manufacturers
:05:48. > :05:54.supplying those Mexican factories may actually have a significant
:05:55. > :05:58.negative impact and if I wrap up with consumers, all these changes
:05:59. > :06:04.will increase the cost of doing business. The automotive sector
:06:05. > :06:07.doesn't have margins that can accommodate those increased costs so
:06:08. > :06:13.we can look forward to prices going up. All right, thank you for your
:06:14. > :06:18.time this morning. Of course, when we get any news out of the meetings
:06:19. > :06:19.going on today between Mexico ministers and Donald Trump's team,
:06:20. > :06:21.we will fill you in. Cisco Systems says it has agreed
:06:22. > :06:26.to buy business software company The deal is another push by Cisco
:06:27. > :06:31.which is one of the world's biggest maker of computer networking
:06:32. > :06:35.hardware to expand its Legacy technology players
:06:36. > :06:40.like Cisco have been trying to shift their strategy to stay
:06:41. > :06:42.ahead of technology developments that could threaten
:06:43. > :06:46.their core businesses. Shares in the Japanese airbag maker
:06:47. > :06:50.Takata surged 18% on Wednesday after the troubled firm denied it
:06:51. > :06:56.would enter into a lengthy The company shares reached
:06:57. > :07:02.the maximum daily increase after a week in which they lost more
:07:03. > :07:05.than half their value. The company has been plagued
:07:06. > :07:07.by a massive global recall of its airbags which have seen it
:07:08. > :07:10.pay a $1 billion fine Rio Tinto is selling most
:07:11. > :07:17.of its coal assets in Australia It's a deal worth up
:07:18. > :07:22.to $2.45 billion, and it is part of the mining giant's divestments
:07:23. > :07:24.designed to boost its bottom line. The agreement is subject
:07:25. > :07:41.to regulatory approval. When you talk Japan, you talk
:07:42. > :07:46.economy and you think gloom, but today we have got good news. They
:07:47. > :08:05.posted their first annual trade surplus since the nuclear disaster.
:08:06. > :08:12.The first time which is great news for the Japanese economy. It is
:08:13. > :08:18.because of cheaper oil prices which brought down the import costs, but
:08:19. > :08:22.this news does come at a sensitive time because US President Donald
:08:23. > :08:26.Trump, he has been criticising Japan about Japan's trade advantage
:08:27. > :08:31.against his country. Especially the car industry which makes up about
:08:32. > :08:36.40% of Japan's exports. Mr Trump has been accusing Tokyo of putting up
:08:37. > :08:39.non tariff barriers to American companies which Japanese officials
:08:40. > :08:43.have been denying and saying, "Look at jobs and investments that
:08:44. > :08:49.Japanese companies have created in the United States." But it is an
:08:50. > :08:52.uncomfortable reminder of a trade war the two countries had decades
:08:53. > :09:02.ago. Thank you very much for your time.
:09:03. > :09:14.Japan's Nikkei up. Their first trade surplus in six years. The Dow Jones
:09:15. > :09:18.not doing too badly. We will be quizzing Tom Stephenson and why
:09:19. > :09:22.they're doing well in a moment. Europe, the markets have been open
:09:23. > :09:27.40 minutes. 2017 really, it is all about delivery. We saw the market
:09:28. > :09:31.rallies after Trump's election. The markets are waiting to see if he
:09:32. > :09:36.will follow through in his campaign promises how Brexit will be
:09:37. > :09:37.delivered, but companies continue to report their results.
:09:38. > :09:41.Samira Hussain has the details about what's out on Wall Street Today.
:09:42. > :09:51.Lots of earnings to talk about today. AT will be reporting. It is
:09:52. > :09:56.on the verge of closing its deal to acquire Time Warner for $85 billion,
:09:57. > :10:00.but the US President, Donald Trump's opposition and regulatory approval
:10:01. > :10:04.poses a threat to the deal. We can expect that investors will be asking
:10:05. > :10:09.about updates. Boeing will also be reporting earnings. You will
:10:10. > :10:11.remember the company got some attention from the then
:10:12. > :10:15.president-elect Donald Trump criticising the high cost of
:10:16. > :10:19.replacing Air Force One, that's the plane used by American presidents.
:10:20. > :10:24.And finally, we'll be hearing from E-commerce site, eBay. It attracted
:10:25. > :10:28.more shoppers in the holiday season. EBay has revamped its platform to
:10:29. > :10:32.offer for products and new brands, all in the hopes of attracting
:10:33. > :10:40.shoppers away from its rival, Amazon.
:10:41. > :10:43.Joining us is Tom Stevenson who is Investment Director
:10:44. > :10:55.So give us your take on what's going on, the Nasdaq hitting record closes
:10:56. > :11:04.again on Tuesday. Loads of earnings coming out. Samira just rattled
:11:05. > :11:12.through some of today's news. Your thoughts? The markets have been
:11:13. > :11:17.strong since the American election. It has been on hope for next year.
:11:18. > :11:21.2017 is going to be the year when Donald Trump delivers or doesn't
:11:22. > :11:25.deliver and that's what markets are looking at out for now and that's
:11:26. > :11:30.why really they've paused for breath now. They've paused for breath at a
:11:31. > :11:34.new high. The earnings have been fairly good as well on the whole,
:11:35. > :11:38.haven't they? That's helped too? The earnings have been OK, but they have
:11:39. > :11:43.to be pretty good because the US market is one of the most highly
:11:44. > :11:46.valued markets in the world. It's more expensive than most other
:11:47. > :11:49.markets so unless earnings come through then I think there is a bit
:11:50. > :11:54.of scope for delivery. So this earnings season is really important.
:11:55. > :12:03.Now, let's talk about Japan. We saw there from Mariko, the Nikkei is up,
:12:04. > :12:07.what's going on there? Yes. So, Japan has had two impacts really.
:12:08. > :12:13.One has been oil. The cheaper oil has really helped because ever since
:12:14. > :12:18.Fukushima it has been importing oil, but the exports particularly to the
:12:19. > :12:22.US. This is pertinent given what Donald Trump has been saying about
:12:23. > :12:25.the motor industry. So I think Japan has been off investors radars for a
:12:26. > :12:30.long time. I think this is good news. It's good news for the market
:12:31. > :12:35.because the Japanese market is not that expensive. So if we get more of
:12:36. > :12:38.this good news and if the dollar strengthens and the yen weakens it
:12:39. > :12:42.could be a good outlook for the Japanese market. All right. Fingers
:12:43. > :12:44.crossed for them. Tom will be back in five minutes. More work to do on
:12:45. > :12:48.this show for Tom! Still to come, from civil
:12:49. > :12:50.war to civil aviation, we'll meet the man whose incredible
:12:51. > :12:52.rise means he now sells private planes to some
:12:53. > :12:56.of the world's richest people. You're with Business Live from BBC
:12:57. > :13:00.News. Women are experiencing widespread
:13:01. > :13:03.discrimination when it comes to dress codes at work,
:13:04. > :13:09.according to a parliamentary report. MPs heard from hundreds
:13:10. > :13:12.of women who have reported that the dress codes
:13:13. > :13:14.they were subject to were sexist. They began an inquiry
:13:15. > :13:16.after a receptionist was sent home Here's our business
:13:17. > :13:21.correspondent Emma Simpson. Sometimes there's no choice and it's
:13:22. > :13:27.not always attractive. But what about being ordered
:13:28. > :13:31.to wear high heels? When Nicola Thorp arrived
:13:32. > :13:34.for her first day at work, she was told by her employment
:13:35. > :13:37.agency she must wear shoes When she refused, she was
:13:38. > :13:42.sent home without pay. What they state is it gives them
:13:43. > :13:45.a more professional look. Now I'm not entirely sure why adding
:13:46. > :13:50.two or four inches to my height makes me more professional
:13:51. > :13:52.or makes me walk in I don't think it affects
:13:53. > :13:56.how I come across. You can see me now, this is exactly
:13:57. > :14:01.what I would be wearing and if it's just a matter of a couple of inches,
:14:02. > :14:04.I can stand tall She then started a petition
:14:05. > :14:09.which led to an inquiry by MPs, who now want action
:14:10. > :14:11.from the Government. We've come up with
:14:12. > :14:13.three recommendations. Firstly, that the Equalities Act
:14:14. > :14:17.of 2010 obviously isn't quite Secondly, we want to raise awareness
:14:18. > :14:24.that wearing high heels or make-up may be a health and safety issue
:14:25. > :14:26.in the workplace. Thirdly, we are going to hopefully
:14:27. > :14:30.if it doesn't work, then we will be At this company, receptionists can
:14:31. > :14:38.wear what they like. In its evidence, the Government said
:14:39. > :14:41.the existing law was clear, and that the dress code imposed
:14:42. > :14:44.on Nicola was unlawful. But the MPs are calling
:14:45. > :14:47.on the Government to do more to make the law more effective in protecting
:14:48. > :15:07.employees from Lots of you have had lots to say.
:15:08. > :15:14.That's on our website. Also many other stories as well. Tesco shares
:15:15. > :15:19.down 1% today in London. You may well remember the accountancy
:15:20. > :15:23.scandal in 2014. The financial Times says the supermarket chain could be
:15:24. > :15:31.facing a second legal claim as a consequence of that. That is on the
:15:32. > :15:36.website. Rio Tinto doing well today in London.
:15:37. > :15:40.Our top story: As President Trump tells carmakers to build more
:15:41. > :15:42.vehicles in the USA, Mexican leaders head to Washington
:15:43. > :15:47.as they try to keep the border open for business and concede that might
:15:48. > :15:48.mean altering the Nafta free trade deal.
:15:49. > :15:55.A quick look at how the markets are faring.
:15:56. > :16:05.They are all higher for now. It has been quite a week this week. Up and
:16:06. > :16:08.down. Today a combination of earnings and a good session in Asia
:16:09. > :16:09.and the US helping. And now let's get the inside track
:16:10. > :16:12.on how the world's top We're talking corporate
:16:13. > :16:15.jets and private planes. They can be the fastest way to get
:16:16. > :16:18.between back to back meetings But the market is
:16:19. > :16:25.difficult for some. Jet inventory is rising,
:16:26. > :16:27.as manufacturers churn out And once it has been bought,
:16:28. > :16:34.the value of a jet falls rapidly. But aircraft broker Jetcraft
:16:35. > :16:36.says that the resale market is still strong,
:16:37. > :16:40.with large, ultra long range aircraft particularly popular among
:16:41. > :16:43.business jet buyers. These types of large cabin jets
:16:44. > :16:46.can link nearly any two Joining us now is Jahid Fazal-Karim,
:16:47. > :17:07.co-owner and chairman Good morning. Good morning. Before
:17:08. > :17:13.we talk about your business and what it does right now, let's talk about
:17:14. > :17:18.your story. We have been explaining to viewers that UX -- escape civil
:17:19. > :17:22.war at the age of eight in Madagascar. What happened next? I
:17:23. > :17:27.will give you the short story because it could be quite long. In
:17:28. > :17:35.1974, there was an uprising in Madagascar. I am of Indian origin.
:17:36. > :17:41.The local population were going after Indians. My father decided to
:17:42. > :17:50.pack his bags and we just left. We left to the neighbouring island. We
:17:51. > :18:00.are a French citizens. We escaped a big uprising in Madagascar. I left
:18:01. > :18:05.to go to school abroad. I love aviation, I love aeroplanes. That is
:18:06. > :18:11.what brought me to what I did today. You were dead set on that as a
:18:12. > :18:15.career, weren't you? Aged 18 you worked -- you moved to France and
:18:16. > :18:20.got on with your career, working in the big corporate sector for quite a
:18:21. > :18:28.while. And then this company, that is a big shift? Yeah, it is a big
:18:29. > :18:32.shift. I worked for two big companies, Airbus and Bombardier.
:18:33. > :18:37.Most of the people I worked with and for are still big friends. The
:18:38. > :18:40.owners of Bombardier are still friends. At the age of 308I was
:18:41. > :18:47.running sales and marketing at Bombardier. I come from a family of
:18:48. > :18:54.entrepreneur to. I had to do something. I was at a crossroads, of
:18:55. > :18:58.going down the corporate path or going on my own. It was the right
:18:59. > :19:05.time for me to leave. I quit my job and left. Quite a big risk? Yeah, it
:19:06. > :19:09.was. But if you are an entrepreneur, you don't think about risk, you
:19:10. > :19:15.think about reward. It is the way you are required. For me, it was
:19:16. > :19:20.about trying to set up a business, looking for gaps in the industry.
:19:21. > :19:27.You obviously found this gap. Who are your clients? What soda prices
:19:28. > :19:30.are they paying for these planes? My clients are from everywhere. That is
:19:31. > :19:37.what makes my company unique when you compare Jetcraft to others who
:19:38. > :19:41.do what we do. The world is global now. Our clients are global. They
:19:42. > :19:47.are from everywhere. They are diverse. They can be big
:19:48. > :19:50.corporations, they can be high-end individuals, rich people who
:19:51. > :19:55.inherited a fortune. You have to cater for all these people. They are
:19:56. > :20:00.all around the world. We sell in Africa, Asia, Latin America, the US.
:20:01. > :20:03.I had to create a structure that would cater for all these people. If
:20:04. > :20:07.you are a Chinese person and you want to buy a private jet, you want
:20:08. > :20:13.to talk to somebody who speaks your language. We established the
:20:14. > :20:20.structure. 50% of sales in the US. After that it is Europe and Asia.
:20:21. > :20:26.Are you a business that is not affected by the global economy? It
:20:27. > :20:32.costs millions to buy one of these. The super-rich are not affected by a
:20:33. > :20:37.global slowdown. Or are you really impacted when the global economy
:20:38. > :20:44.heads south? You are impacted. You have to be impacted. Our business is
:20:45. > :20:48.well correlated with global economy. If you feel confident and you know
:20:49. > :20:54.that business is doing well and you have a good future outlook, you make
:20:55. > :21:00.investments. With billionaire Donald Trump in office, is that good for
:21:01. > :21:05.you? For our business, Trump is not bad. Everybody has their political
:21:06. > :21:11.views. As a business, he is a Republican, you will reduce taxes.
:21:12. > :21:15.He will make the rich richer. And fortunately for us, these are our
:21:16. > :21:20.clients. Corporations will get wealthier in the US. We will sell
:21:21. > :21:22.more planes. Thank you for coming in. It has been fascinating.
:21:23. > :21:25.They are tiny little figures that have made a Danish toy firm
:21:26. > :21:28.iconic across the world, but could you tell the difference
:21:29. > :21:30.between a real Lego figure and a copy cat?
:21:31. > :21:33.It's a question we asked the man in charge of making them
:21:34. > :22:24.Have a little look at that for me. What do you think of that? It looks
:22:25. > :22:37.like a mini figure to me. What do you think of him? Two men? Which one
:22:38. > :22:47.is yours? Have a guess. I would say this is Lego. This is not. OK, this
:22:48. > :22:54.is Lego. It is not real. It is trying to be Lego. That is my
:22:55. > :23:03.assessment of it. It has a branding similar to yours.
:23:04. > :23:14.Tom is back. I do feel really sorry. I feel like we put him in a corner.
:23:15. > :23:18.I think you did, yes! It's very difficult. Now the whole world has
:23:19. > :23:23.seen that. Let's talk about the stories in the papers. Dubai airport
:23:24. > :23:33.records 83.6 million passengers last year. Many more are going through
:23:34. > :23:40.Dubai. It is a thoroughfare. That was 7% up on 2015. The forecast for
:23:41. > :23:44.this year is 89 million. That is a similar growth rate. It is going
:23:45. > :23:50.from strength to strength. It is in the right place. It is at the
:23:51. > :23:56.crossroads of East West traffic, passenger traffic and cargo traffic.
:23:57. > :24:01.Year about expansion in Dubai and other places in the world, runways
:24:02. > :24:06.and airports being built. We are still grappling over a third runway,
:24:07. > :24:10.possibly at Heathrow? Yes, it is a completely different mentality to
:24:11. > :24:14.building infrastructure. I was in Dubai a few months ago. Driving down
:24:15. > :24:19.the road between Dubai and Abu Dhabi, my driver said, this is the
:24:20. > :24:25.new airport. Seven runways. They have a massive airport and they are
:24:26. > :24:28.building an even more massive airport. And here we are still
:24:29. > :24:34.agonising about a third runway at Heathrow. Let's talk about Donald
:24:35. > :24:40.Trump. He signed yet more executive orders yesterday. This is about oil
:24:41. > :24:43.pipelines. Give us some background? This is controversial. It is quite
:24:44. > :24:49.an insight into Donald Trump's thinking. It shows that he is much
:24:50. > :24:52.more interested about growing the economy than the environment,
:24:53. > :25:03.because these pipelines are extremely controversial. They run
:25:04. > :25:06.under native lands. There is a lot of controversy about building them.
:25:07. > :25:11.The second interesting aspect is that he said they will be only built
:25:12. > :25:16.if they use American steel in the pipeline. This is a real indication
:25:17. > :25:20.of what he means by putting America first. This story is in the
:25:21. > :25:26.Washington post and many other papers. The Guardian was noting that
:25:27. > :25:31.they would need 28,000 people to make this one pipeline work. But
:25:32. > :25:38.only 50 long-term jobs. The vast majority are very short-term jobs.
:25:39. > :25:42.It is 28,000 that Donald Trump out -- can say he has created in a
:25:43. > :25:47.sense? Absolutely. He is talking about building infrastructure, to
:25:48. > :25:51.allow the growth in the future. Thank you for coming in. That is it
:25:52. > :25:56.from business life today. There will be more throughout the day. --
:25:57. > :26:12.Business Live. See you tomorrow. Hello there. Huge contrast across
:26:13. > :26:16.the UK this morning. We have got mild and windy conditions in the
:26:17. > :26:17.north and west. It is cold and frosty across the