30/01/2017 BBC Business Live


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30/01/2017

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This is Business Live from BBC News with Jamie Robertson

:00:00.:00:00.

The Trump administration is standing firm over its ban on immigration

:00:00.:00:11.

from seven countries - despite court rulings and mass

:00:12.:00:14.

Business leaders worldwide are swift to react.

:00:15.:00:17.

Live from London, that's our top story on Monday the 30th of January.

:00:18.:00:38.

Airlines juggle flight crew and passengers,

:00:39.:00:42.

while the tech giant Google urges some staff not to leave the country

:00:43.:00:47.

- we'll find out how companies are being impacted by the US travel

:00:48.:00:50.

Volkswagen has overtaken Toyota to become the world's

:00:51.:00:55.

best-selling car-maker - recapturing the position

:00:56.:00:59.

And this is where the markets are, they are all down, and we will

:01:00.:01:10.

explain why shortly. We'll be getting the inside track

:01:11.:01:13.

on how cleaning windows and houses, doing the gardening and pet care has

:01:14.:01:17.

become big business. And what do you make of VW moving

:01:18.:01:21.

swiftly into the fast lane and unseating Toyota as the world's

:01:22.:01:24.

biggest seller of cars - President Trump is standing firm

:01:25.:01:26.

on his ban on immigration from seven countries -

:01:27.:01:45.

Iran, Iraq, Libya, Somalia, He's also denying the measures

:01:46.:01:47.

are targeting Muslims. The leaders of many global business

:01:48.:01:55.

have been swift to react - the technology firms among the first

:01:56.:01:58.

to speak out. Google says it will take legal

:01:59.:02:01.

action to protect its employees. It's urging staff who could be

:02:02.:02:04.

caught up in the ban not to leave the US and has more than 100 staff

:02:05.:02:08.

affected by the order. The head of Tesla, Elon Musk,

:02:09.:02:15.

says the ban isn't the best way to address challenges the country

:02:16.:02:18.

is facing, and says he will take up industry concerns

:02:19.:02:22.

with President Trump's Emirates, one of the world's

:02:23.:02:23.

biggest long-haul carriers, has had to change flight rosters

:02:24.:02:29.

for pilots and cabin crew. While Etihad, the national airline

:02:30.:02:34.

for the United Arab Emirates, says it's offering affected

:02:35.:02:38.

passengers the option to refund Thank you very much, Jamie. Many

:02:39.:02:52.

other businesses have their comments and express their views.

:02:53.:02:55.

Peter Trubowitz, Professor of International Relations

:02:56.:02:57.

and Director of the US Centre at the London School of Economics.

:02:58.:03:02.

This is an interesting one, an executive order signed on Friday,

:03:03.:03:06.

and what the ramifications have been. Many big company bosses say

:03:07.:03:11.

they have tactical issues to deal with here, staff who can't get back

:03:12.:03:17.

to the US, staff who can't go on important business trips. Indeed, we

:03:18.:03:22.

can see the backlash already. Trump in one fell swoop has managed to

:03:23.:03:26.

galvanise the political opposition, create enemies in silicon valley and

:03:27.:03:31.

put many fellow Republicans especially in the Senate in a

:03:32.:03:37.

difficult place. I think many Americans at this point are

:03:38.:03:48.

beginning to feel buyers remorse. Trump in the last week has lost

:03:49.:03:52.

eight points in approval ratings. He already came in with low ratings, so

:03:53.:03:56.

what he is losing are people who were not exactly in the tank but

:03:57.:04:00.

were willing to give him the benefit of the doubt. It is hard to see how

:04:01.:04:04.

this helps him politically, and at the level of policy, one has to

:04:05.:04:07.

wonder if this is more of a recruiting device than something

:04:08.:04:14.

that will depress support. -- a recruiting device for Isis. And

:04:15.:04:21.

it is so damaging to business. What do you think businesses like Google,

:04:22.:04:24.

Starbucks, the rest of them, what can they do to exert political

:04:25.:04:31.

pressure? Put money into the ACLU. And what is that? American for Civil

:04:32.:04:39.

Liberties union. Donations went through the roof over the weekend,

:04:40.:04:44.

apparently. The problem for them is that this was premeditated and it

:04:45.:04:51.

was announced by Trump that he was going to move in this direction, and

:04:52.:04:56.

I think that many of them had kind of hoped that once he got into

:04:57.:05:01.

office, there would be more stable hands in the Senate, in the

:05:02.:05:06.

Congress, members of his administration that would steer him

:05:07.:05:10.

in another direction, and that's not what's happening, so I think they

:05:11.:05:13.

need to express their voices more strongly. Over the weekend,

:05:14.:05:20.

something that has been missed in all of this is the other executive

:05:21.:05:24.

order or presidential decision that Trump made over the weekend which

:05:25.:05:28.

was to put Steve Bannon onto the National Security Council, and

:05:29.:05:31.

effectively remove the chairman of the Joint Chiefs of Staff and the

:05:32.:05:35.

Director of National intelligence. They will come on when issues

:05:36.:05:39.

concerning front and centre. This is a big move, you have an

:05:40.:05:43.

anti-globalist, Trump's chief political strategist, now at the

:05:44.:05:50.

principals' meeting. Peter, I'm sure we will talk to you again in the

:05:51.:05:55.

next four years! The first 100 hours of the Trump presidency, never mind

:05:56.:05:59.

100 days. Other news now: The boss of Starbucks coffee says

:06:00.:06:04.

he plans to hire 10,000 refugees It's a response to President Trump's

:06:05.:06:07.

ban on immigration In a letter to existing staff,

:06:08.:06:10.

Howard Schultz wrote that the scheme would start in the United States

:06:11.:06:14.

where the focus would be on hiring immigrants "who have served with US

:06:15.:06:17.

troops as interpreters and support The US airline Delta has been forced

:06:18.:06:20.

to cancel about 150 domestic flights because of what it calls "automation

:06:21.:06:27.

issues" after a "systems outage". Whilst flights are now departing

:06:28.:06:32.

again, the airline says there may The airline also suffered problems

:06:33.:06:34.

with its website which is now We have got lots of stories out

:06:35.:06:51.

there today, lots of good corporate stories. We will try to touch on

:06:52.:06:57.

them. Toshiba, once again shares on the move quite significantly. It

:06:58.:07:04.

just can't catch a break, say our Singapore team. The Japanese

:07:05.:07:08.

conglomerate is said to be sued by several trust banks over the

:07:09.:07:12.

accounting scandal. Shares down by some 6% in Tokyo on that story.

:07:13.:07:20.

What else have we got there? The FTSE down. Let me get my glasses on

:07:21.:07:33.

so I concede! -- can see! This picture is lured, I can't understand

:07:34.:07:36.

it. Shall we move on? We can get to the

:07:37.:07:40.

FTSE later! Toyota has lost its four

:07:41.:07:42.

year run as the world's biggest selling car-maker -

:07:43.:07:45.

it's been overtaken by Volkswagen. I think given the scandal over

:07:46.:07:58.

Volkswagen's emissions test cheating, some viewers might find

:07:59.:08:03.

this uprising, but the company did quite well in China, pushing up its

:08:04.:08:08.

worldwide sales by nearly 4% from last year. Toyota meanwhile really

:08:09.:08:13.

struggled from the slowdown in the United States, only managing 0.2%

:08:14.:08:21.

rise in sales, and things are not looking great for Toyota in the

:08:22.:08:24.

American market under the new administration of President Trump,

:08:25.:08:28.

as we have been reporting he has criticised Toyota and the rest of

:08:29.:08:31.

the auto industry in his tweet, accusing Tokyo of putting nontariff

:08:32.:08:37.

barriers, which Tokyo denies, but business leaders are quite

:08:38.:08:40.

concerned, and it has been reported the boss of Toyota will be meeting

:08:41.:08:44.

the Japanese Prime Minister this Friday ahead of the Prime Minister's

:08:45.:08:48.

meeting with President Trump on the 10th of February.

:08:49.:08:55.

Thank you very much indeed. Let's have a look at these markets, all of

:08:56.:09:01.

them looking fairly negative. A lot of the sentiment affecting the

:09:02.:09:05.

markets globally is this feeling of protectionism, or worry about

:09:06.:09:07.

protectionism, that comes mainly from the United States but also

:09:08.:09:12.

there are shadows of it coming from Brexit and the possibility of the

:09:13.:09:18.

ending of the UK's attachment to the single market. All of these things

:09:19.:09:20.

are beginning to worry the markets more. Let's have a look at what is

:09:21.:09:27.

happening in the UK. All of them down, and not just protectionism,

:09:28.:09:30.

but worries about what is happening in the United States. The ban on the

:09:31.:09:34.

immigrants from the seven countries into the United States, even though

:09:35.:09:40.

it may be done for security reasons, has had a knock-on effect on to

:09:41.:09:44.

businesses as well, and that again is worrying the markets.

:09:45.:09:47.

Let's have a look at what is going to be coming up in the day ahead in

:09:48.:09:49.

the US. Lots of earnings

:09:50.:09:54.

happening this week. Apple will be reporting on Tuesday

:09:55.:09:55.

and it seems the revamped iPhone 7 will give the tech company

:09:56.:09:59.

a real big boost. Apple is forecasting an all-time

:10:00.:10:01.

record high for revenues. The social media giant Facebook

:10:02.:10:05.

will be reporting earnings on Wednesday and for the past few

:10:06.:10:07.

quarters Facebook's mobile ad sales have been soaring,

:10:08.:10:11.

boosting its overall growth, but back in November Facebook warned

:10:12.:10:14.

that ad growth may slow. On Thursday, retail giant Amazon

:10:15.:10:18.

will be reporting earnings and investors will be looking to see

:10:19.:10:20.

just how profitable the holiday Finally, in non-earnings news,

:10:21.:10:23.

on Friday we'll get The unemployment rate is at 4.7%,

:10:24.:10:31.

the lowest it has been in years. Hughes is with us, chief market

:10:32.:10:52.

analyst at foreign trade at GSX. It is quite an interesting week. Some

:10:53.:11:02.

big names reporting, the so-called Fangs, Facebook, Apple, Netflix and

:11:03.:11:08.

Google. It has been quiet, Chinese New Year, many markets close, we

:11:09.:11:12.

only had Japan and Australia open today. Yes, and you get that

:11:13.:11:17.

situation. Sometimes you get weeks where things. Off slowly and there

:11:18.:11:24.

will be a lack of data. It would give us a nice ease into the week if

:11:25.:11:28.

resident Trump wasn't in the White House. But these Fangs stocks are

:11:29.:11:41.

important, it used to be the big banking and oil stocks were the

:11:42.:11:43.

financial forces behind the markets, but now we have to look to these

:11:44.:11:47.

enormous technology stocks. Google was disappointing about back-end of

:11:48.:11:53.

last week, so fantastic numbers, but we look to Apple, one of the biggest

:11:54.:11:58.

companies in the world, and we look towards Facebook, those are two huge

:11:59.:12:01.

companies. If I am an investor looking at the markets, do I look at

:12:02.:12:08.

or do I look at the results coming or do I look at the results coming

:12:09.:12:12.

out this week and say, I will put some money in that, and forget about

:12:13.:12:17.

him? It is a good point, because if you look at the way the markets have

:12:18.:12:22.

been rallying since November the night, there has been a lot of

:12:23.:12:26.

movement up, but the foundations of that have not been particularly

:12:27.:12:29.

there, we haven't seen too much in terms of different news which would

:12:30.:12:34.

lead it there. With Donald Trump in the White House at the moment, you

:12:35.:12:37.

have to macro issues. One is the fact that we don't know what he is

:12:38.:12:41.

going to say next or what executive order will come next. Globally, you

:12:42.:12:50.

would, but from a market point of view, you wouldn't. On the other

:12:51.:12:54.

side of this, the markets are still rallying, earnings have been

:12:55.:12:57.

particularly good since the start of earnings season, Google slightly

:12:58.:13:00.

missed it but we have seen good numbers. So we are very much caught

:13:01.:13:04.

at the moment, you have real uncertainty, which the market hates,

:13:05.:13:07.

from Donald Trump, but good financial numbers which are helping

:13:08.:13:13.

boost the markets. And I understand we have the Fed midweek, so what are

:13:14.:13:18.

Janet Yellen and her team trying to figure right? They are try to work

:13:19.:13:21.

out what on earth is going on with Donald Trump! Should be up soon? She

:13:22.:13:34.

is poised to put the rate up soon. She told us there would be four rate

:13:35.:13:39.

hikes, and we only got one, but they are hawkish on the back of strong

:13:40.:13:44.

fiscal policy from Donald Trump, and the fact that the economy is doing

:13:45.:13:48.

particularly well, so with that in mind, the Fed has to be pretty

:13:49.:13:51.

hawkish, but Janet Yellen doesn't always go on with that. Thank you

:13:52.:13:56.

very much indeed, James. We will keep an eye on her as the week

:13:57.:13:59.

progresses! She's back in the news, I have missed Janet! We haven't

:14:00.:14:03.

talked about hazards before Christmas. -- talked about her since

:14:04.:14:08.

before Christmas. Still to come: Getting spick

:14:09.:14:09.

and span - how cleaning, gardening and pet care can lead

:14:10.:14:12.

to a tidy profit. You're with Business

:14:13.:14:14.

Live from BBC News. The best-selling cereal brand

:14:15.:14:15.

in the UK has just announced a ?30 million investment

:14:16.:14:19.

in its manufacturing plants. And that brand is Weetabix, did you

:14:20.:14:24.

know that? It's going to increase capacity

:14:25.:14:29.

at its Burton Latimer and Corby plants, as well as create

:14:30.:14:31.

800 new jobs. Giles Turrell is the Chief Executive

:14:32.:14:33.

of Weetabix, and he joins us now. Why are you doing this? We are doing

:14:34.:14:43.

it to meet the growing demand for our healthy breakfast cereals in the

:14:44.:14:47.

UK, but also to help us meet the growing demand in the markets where

:14:48.:14:52.

we export, and specifically in China, where business doubled last

:14:53.:14:57.

year. You are creating another 800 jobs, which is... I wish we were. We

:14:58.:15:03.

will be creating, our current workforces around 800. My mistake.

:15:04.:15:10.

You are creating new jobs, so this is fantastic news for Theresa May,

:15:11.:15:15.

saying Britain is open for business. But how have you been affected by

:15:16.:15:18.

the whole Brexit story with the pound and so on? The first part your

:15:19.:15:24.

question, it is about ensuring we can keep the business successful in

:15:25.:15:28.

the Northamptonshire area. With regard to Brexit, we have definitely

:15:29.:15:34.

seen with the weakening of sterling having an impact our business, we

:15:35.:15:41.

import a lot of raw materials, and naturally what this enables us to do

:15:42.:15:47.

is to continue that export. Your owners are putting you up for sale.

:15:48.:15:51.

Have we any news on that? They have just backed this investment, so they

:15:52.:15:56.

believe in the future of the company, and they believe in what we

:15:57.:15:59.

are trying to do in our court UK market as well as trying to... Maybe

:16:00.:16:05.

they want to increase the price? I'm not going to comment on rumour and

:16:06.:16:08.

speculation, I am here today to talk about good news, which is the

:16:09.:16:12.

investment in the UK, and that will also help us expand our business

:16:13.:16:15.

internationally and the growing success we are seeing in China.

:16:16.:16:19.

Buddies think the price of a box of Weetabix will have to go up because

:16:20.:16:21.

of Brexit? There will be an impact on our

:16:22.:16:28.

business. As our first responsibility must to be absorb

:16:29.:16:31.

that internally and we will always look to do that by running the

:16:32.:16:34.

business more efficiently and effectively. If we're unable to do

:16:35.:16:38.

that, the last resort would be to increase our cost prices. Thank you

:16:39.:16:47.

for your time. Lots more stories in the UK on our

:16:48.:16:51.

website. Do take a look at those too.

:16:52.:16:52.

Our top story: The Trump administration is standing firm

:16:53.:16:56.

over its ban on immigration from seven countries

:16:57.:16:57.

despite court rulings and mass protests against it.

:16:58.:17:03.

A quick look at how markets are faring.

:17:04.:17:09.

We are nearly 50 minute noose a brand-new trading week in Europe and

:17:10.:17:15.

sentiment is negative as you can see, but they had a fairly good run

:17:16.:17:20.

last week, European markets. So it is from a very high base. An excuse

:17:21.:17:24.

to take profits maybe. We're near the top still.

:17:25.:17:29.

It's often said that "where there's muck, there's brass".

:17:30.:17:33.

And if you wanted proof, you could do worse than look at the growth

:17:34.:17:36.

Cleaning, gardening and pet care amongst the jobs increasingly

:17:37.:17:40.

being farmed out by people who are considered cash

:17:41.:17:42.

One company they turn to is Fantastic Services,

:17:43.:17:50.

which started in 2009 by Rune Sovndahl and

:17:51.:17:52.

It has now become the UK's largest domestic services provider,

:17:53.:18:10.

and has a turnover in excess of ?28 million a year,

:18:11.:18:13.

As well as operating throughout the UK, it now has

:18:14.:18:16.

expanded into Europe, Australia and the USA.

:18:17.:18:18.

Rune Sovndahl is the Chief Executive of Fantastic Services.

:18:19.:18:24.

You're Danish. That would explain the name! Welcome. It can be hard to

:18:25.:18:35.

pronounce. You're Danish, but you have been living in the UK for a

:18:36.:18:38.

long time. Presumably in the UK first? We started in London. I came

:18:39.:18:44.

here in 1999. We started in 2009. I at that stage was at lastminute.com

:18:45.:18:51.

and we were working on booking websites and I metAnton and we grew

:18:52.:18:57.

the business out of a need. I wanted to get my deposit back on an

:18:58.:19:02.

apartment. What was the genesis of it. How did you start it? It was the

:19:03.:19:06.

discussion of it and then finding out there was a general need for

:19:07.:19:14.

more clarity in the industry. Like fixed prices, a stand consistent

:19:15.:19:20.

service. I came from the corporate side from lastminute.com and we

:19:21.:19:24.

looked a the market place and it was very fragmented when we started this

:19:25.:19:27.

seven years ago. I hadn't heard of you until today. However, several

:19:28.:19:31.

colleagues here have heard of Fantastic Services because I did an

:19:32.:19:36.

unscientific survey in the building, but there are many companies like

:19:37.:19:41.

yours out there, I mean, many. Some we have heard of like Chekkatrade

:19:42.:19:48.

and so many cleaning companies, just cleaning. Why do you think you're

:19:49.:19:54.

going to stand? Out? We didn't compare three prices and this stuff.

:19:55.:19:57.

We wanted to make everything simple. We wanted to make sure that you get

:19:58.:20:01.

what you're looking for. I think that's why we stand out. Why we

:20:02.:20:08.

haven't been noticed because one of the things we're organically grown.

:20:09.:20:13.

Especially when it is a cleaner or someone of of that nature, you need

:20:14.:20:19.

to trust them and it is Word of mouth, you trust the person more

:20:20.:20:23.

than you would a generic website? We have been around for seven years

:20:24.:20:26.

now. I don't think it is a generic website and we are a company that

:20:27.:20:32.

backs up a lot and once people know this about delivering consistent

:20:33.:20:35.

services, that's why we survived. Don't you compete on price? Of

:20:36.:20:39.

course, we do. The price is lower now than it was before the

:20:40.:20:43.

recession. Which is also led to a greater demand. So there is more

:20:44.:20:47.

people using cleaners than ten years ago. What does that do to the money

:20:48.:20:54.

that's given to your employees? Surely their pay packets are getting

:20:55.:20:57.

squeezed as well? Everybody is getting squeezed at the moment and

:20:58.:21:02.

their pay packets as well. We came in with more technology and came in

:21:03.:21:06.

with ways of being more efficient and it is easy to book by the app

:21:07.:21:10.

now, Fantastic Services and everything else. It is about being

:21:11.:21:14.

efficient in the industry and that's one of the reasons why we succeeded.

:21:15.:21:20.

Your cleaners and your handymen and gardeners, they are not employees of

:21:21.:21:24.

yours, are they? No. What will it mean with Brexit because many of

:21:25.:21:29.

them are from around Europe, all over Europe, most of your staff are

:21:30.:21:34.

from over Europe? At first, I mean, everybody was scared. There is no

:21:35.:21:37.

clear real answer and we don't know yet, but on the other side, you have

:21:38.:21:43.

got a lot of Brits abroad. We have British people working in Bulgaria

:21:44.:21:47.

for us. So it's a whole mix of this and there is people everywhere...

:21:48.:21:51.

But for you running a business. Huge uncertainty. It is not necessarily,

:21:52.:21:56.

no. The number of services and growth and the people who want to be

:21:57.:22:03.

organised, a gardener likes to do gardening, not sit on a website and

:22:04.:22:06.

do this stuff. It is like providing a service to the gardeners so the

:22:07.:22:10.

gardeners can do a great job. We want people to do what they're good

:22:11.:22:14.

at. We became that missing link between that. All right, we'll keep

:22:15.:22:17.

an eye on how it goes. Thank you very much for coming in. The founder

:22:18.:22:21.

of Fantastic Services. Thank you very much.

:22:22.:22:27.

For the last three years the e-commerce giant Amazon has been

:22:28.:22:30.

building itself up in India and with a population

:22:31.:22:34.

of about 1.3 billion people, it's little wonder that the company

:22:35.:22:37.

Shilpa Kannan has been speaking to the head of Amazon's India

:22:38.:22:41.

operations who explained how the company's $5 billion

:22:42.:22:43.

of investment is helping businesses across the country.

:22:44.:22:46.

Every time we find sellers use our warehouses

:22:47.:22:50.

their deficits go down, their cost structure goes down

:22:51.:22:52.

They use our logistics network and the speed of delivery goes up

:22:53.:22:57.

So all of these results in lower cost of operations and lower

:22:58.:23:02.

prices, but to build all the stuff requires investment.

:23:03.:23:11.

Building networks, we have more than 27 centres in 13 States,

:23:12.:23:14.

7.5 million cubic feet of space, the largest build out

:23:15.:23:16.

A car about which car you drive. A viewer says I can like the Golf R

:23:17.:23:47.

very much. Mohamed says Audi. Another viewer says Kia is the best

:23:48.:23:49.

make of car. We have got to talk about this

:23:50.:23:59.

Danish drugs giant making a big UK investment. A story on our website.

:24:00.:24:02.

Tell us more? Theresa May will be cheered up. It is a big European

:24:03.:24:07.

company. It is probably the biggest maker of insulin products and it is

:24:08.:24:14.

choosing to put ?150 million into research and development into type 2

:24:15.:24:18.

diabetes in Oxford. Why? It had pause for thought about the Brexit

:24:19.:24:22.

vote and considered going elsewhere, but the research and the

:24:23.:24:25.

collaboration between scientists and the commercial people, that's around

:24:26.:24:29.

here, was the best. That's a real plus for Oxford as opposed to

:24:30.:24:32.

Cambridge because you would have thought it would have gone to

:24:33.:24:35.

Cambridge? Quite a big deal for them. Let's look at this story about

:24:36.:24:44.

Goldman. Goldman put pressure on Theresa May to protect City post

:24:45.:24:49.

Brexit. It is all part of their bigger picture. Today, there is a

:24:50.:24:54.

meeting in Frankfurt, the German financial regulator has convened a

:24:55.:24:57.

meeting president biggest banks in the city. It is meant to be about

:24:58.:25:00.

regulation and compliance, but it is going to be a pitch come to

:25:01.:25:05.

Frankfurt. If you are going to leave London, please come to Frankfurt. It

:25:06.:25:08.

is not clear how many jobs will leave the City, but Frankfurt is in

:25:09.:25:12.

there pitching as is Paris and as is Dublin. As is New York? A lot of

:25:13.:25:17.

people think the bigger winners will be New York, it is because

:25:18.:25:21.

businesses will seize to exist. They have move the traders to New York

:25:22.:25:25.

and have economies of scale. What about Dublin? It has been chosen by

:25:26.:25:31.

a lot of the Asset Management firms. JP Morgan is moving a lot of people

:25:32.:25:38.

to Dublin. Interesting. A whole new world.

:25:39.:25:43.

That's it from Business Live today. There will be more business news

:25:44.:25:47.

throughout the day on the BBC Live webpage and on World Business

:25:48.:25:50.

Report. Well, it has been a very dry winter

:25:51.:26:10.

so far. Now we are seeing changes this week. Milder air pushing up

:26:11.:26:13.

sfrouth thanks to areas of low pressure. So it looks like it will

:26:14.:26:16.

turn more unsettled through the week with spells of rain, something we

:26:17.:26:19.

haven't seen in a while for many. It

:26:20.:26:20.