30/01/2017 BBC Business Live


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This is Business Live from BBC News with Jamie Robertson


The Trump administration is standing firm over its ban on immigration


from seven countries - despite court rulings and mass


Business leaders worldwide are swift to react.


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


Airlines juggle flight crew and passengers,


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


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


Volkswagen has overtaken Toyota to become the world's


best-selling car-maker - recapturing the position


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


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


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


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


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


biggest seller of cars - President Trump is standing firm


on his ban on immigration from seven countries -


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


are targeting Muslims. The leaders of many global business


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


to speak out. Google says it will take legal


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


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


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


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


is facing, and says he will take up industry concerns


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


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


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


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


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


other businesses have their comments and express their views.


Peter Trubowitz, Professor of International Relations


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


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


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


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


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


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


galvanise the political opposition, create enemies in silicon valley and


put many fellow Republicans especially in the Senate in a


difficult place. I think many Americans at this point are


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


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


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


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


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


wonder if this is more of a recruiting device than something


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


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


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


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


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


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


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


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


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


Congress, members of his administration that would steer him


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


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


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


order or presidential decision that Trump made over the weekend which


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


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


Director of National intelligence. They will come on when issues


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


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


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


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


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


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


ban on immigration In a letter to existing staff,


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


FTSE later! Toyota has lost its four


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


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


Volkswagen's emissions test cheating, some viewers might find


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


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


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


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


American market under the new administration of President Trump,


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


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


barriers, which Tokyo denies, but business leaders are quite


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


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


meeting with President Trump on the 10th of February.


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


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


markets globally is this feeling of protectionism, or worry about


protectionism, that comes mainly from the United States but also


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


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


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


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


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


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


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


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


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


the US. Lots of earnings


happening this week. Apple will be reporting on Tuesday


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


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


record high for revenues. The social media giant Facebook


will be reporting earnings on Wednesday and for the past few


quarters Facebook's mobile ad sales have been soaring,


boosting its overall growth, but back in November Facebook warned


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


will be reporting earnings and investors will be looking to see


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


particularly good since the start of earnings season, Google slightly


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


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


from Donald Trump, but good financial numbers which are helping


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


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


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


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


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


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


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


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


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


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


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


before Christmas. Still to come: Getting spick


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


to a tidy profit. You're with Business


Live from BBC News. The best-selling cereal brand


in the UK has just announced a ?30 million investment


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


know that? It's going to increase capacity


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


800 new jobs. Giles Turrell is the Chief Executive


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


internationally and the growing success we are seeing in China.


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


of Brexit? There will be an impact on our


business. As our first responsibility must to be absorb


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


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


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


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


website. Do take a look at those too.


Our top story: The Trump administration is standing firm


over its ban on immigration from seven countries


despite court rulings and mass protests against it.


A quick look at how markets are faring.


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


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


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


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


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


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


Cleaning, gardening and pet care amongst the jobs increasingly


being farmed out by people who are considered cash


One company they turn to is Fantastic Services,


which started in 2009 by Rune Sovndahl and


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


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


As well as operating throughout the UK, it now has


expanded into Europe, Australia and the USA.


Rune Sovndahl is the Chief Executive of Fantastic Services.


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


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


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


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


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


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


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


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


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


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


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


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


colleagues here have heard of Fantastic Services because I did an


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


of Fantastic Services. Thank you very much.


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


building itself up in India and with a population


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


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


operations who explained how the company's $5 billion


of investment is helping businesses across the country.


Every time we find sellers use our warehouses


their deficits go down, their cost structure goes down


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


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


prices, but to build all the stuff requires investment.


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


7.5 million cubic feet of space, the largest build out


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


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


make of car. We have got to talk about this


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


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


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


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


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


vote and considered going elsewhere, but the research and the


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


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


Cambridge because you would have thought it would have gone to


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


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


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


meeting in Frankfurt, the German financial regulator has convened a


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


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


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


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


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


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


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


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


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


to Dublin. Interesting. A whole new world.


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


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


Report. Well, it has been a very dry winter


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


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


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


haven't seen in a while for many. It


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