:00:00. > :00:07.This is Business Live from BBC News with Rachel Horne and Sally Bundock.
:00:08. > :00:11.As many big US businesses rally against President Trump's travel
:00:12. > :00:15.ban, will he be able to get them back onside with lower taxes
:00:16. > :00:36.Live from London, that's our top story on Tuesday 31st January.
:00:37. > :00:41.With $2.5 trillion stashed overseas, can America's biggest companies be
:00:42. > :00:45.convinced to bring it back and boost their own economy?
:00:46. > :00:47.Also in the programme, jitters in Japan.
:00:48. > :01:00.Profits fall at Canon and Sony sees a big write-down on the big screen.
:01:01. > :01:14.The FTSE 100 up slightly, the Dax is flat.
:01:15. > :01:21.And, how a wine industry is trying to put Lebanon's vineyards back at
:01:22. > :01:23.the top table. And, bad maths skills
:01:24. > :01:25.could be costing us as much Let us know, have your maths
:01:26. > :01:29.skills ever resulted US President Donald Trump has only
:01:30. > :01:50.been in office for 12 days but he's already turned every Presidential
:01:51. > :01:54.convention on its head. Temporarily banning immigration
:01:55. > :01:58.from seven countries may have emboldened the President's
:01:59. > :02:01.supporters but it has been Leading experts now say those
:02:02. > :02:06.international relationships could be further tested and even result
:02:07. > :02:10.in a trade war if Mr Trump follows through on his
:02:11. > :02:13.radical plan for tax cuts. There are around $2.5 trillion worth
:02:14. > :02:18.of US profits currently overseas held by some of the biggest US
:02:19. > :02:22.companies like Google, Microsoft and Apple that would get
:02:23. > :02:26.hit by some of the highest tax rates in the world at 35%
:02:27. > :02:33.if they were repatriated now. Donald Trump has "proposed" three
:02:34. > :02:37.areas of tax reform. A "one-time tax rate of 10%"
:02:38. > :02:41.for companies bringing money earned in other countries back
:02:42. > :02:44.into the United States, he's also talked about a cut to 15%
:02:45. > :02:49.in US tax rates to improve competitiveness, and potential
:02:50. > :02:53.border taxes on firms that outsource With me is our Business
:02:54. > :03:14.Editor Simon Jack. You were talking to some of those in
:03:15. > :03:16.the know about this recently. Businesses have been very
:03:17. > :03:22.enthusiastic about the proposed tax reforms? Yes, the less tax a company
:03:23. > :03:27.pays, the more of its own profits it gets to keep, and the more valuable
:03:28. > :03:34.the company is, and you have seen share prices rise since the
:03:35. > :03:40.election. But crucially, trillions of dollars are held overseas, and
:03:41. > :03:45.getting those back, there is a massive disincentive. The Chief
:03:46. > :03:50.Executive of the Boston consulting group sits on Donald Trump's policy
:03:51. > :03:55.Forum, he explained what is keeping the money overseas.
:03:56. > :03:58.That creates a discouragement to bring it back, you leave it
:03:59. > :04:04.overseas, you show higher earnings, because you have not pay taxes on
:04:05. > :04:07.it, but the money cannot be put to work in the US, so it creates
:04:08. > :04:11.challenges the companies. Most of the rest of the world does not
:04:12. > :04:19.operate that way, and there has been pressure for years. It is by both
:04:20. > :04:22.parties, the system is antiquated, but the gridlock has prevented any
:04:23. > :04:25.action from being taken. Trillions coming back into the
:04:26. > :04:31.country would be good for the economy? It depends on what you have
:04:32. > :04:34.it. If it came back into the country and you put it to work on building
:04:35. > :04:40.would be one thing, but some people would be one thing, but some people
:04:41. > :04:44.fear if they buy back shares and the financial engineering with it...
:04:45. > :04:50.Depends. You would see the dollar shirt as well. If you move to put $5
:04:51. > :04:56.trillion in a short order, something will happen, there will be some sort
:04:57. > :04:59.of disturbance. Christopher Smart is a former adviser to Barack Obama, he
:05:00. > :05:04.explained what the problems could be.
:05:05. > :05:07.The potential is for a great deal of instability, both on the financial
:05:08. > :05:14.market side and on the political side. For the financial markets the
:05:15. > :05:17.issue is a large amount of money destabilising things, but the
:05:18. > :05:21.political issue has to do with the potential for retaliation, and areas
:05:22. > :05:26.that we have been removing start going up again, it could lead to a
:05:27. > :05:31.trade skirmish. This is the problem. People cannot
:05:32. > :05:37.figure out whether Donald Trump is good or bad for American business.
:05:38. > :05:41.We have this story about Washington State following through with legal
:05:42. > :05:49.action against the travel ban that was signed off last week. Companies
:05:50. > :05:55.are unsure what it will mean for them. There is no such thing as a
:05:56. > :06:00.tax free lunch. Anybody that has you reform is simple is crazy, occurs
:06:01. > :06:08.lots of administrations have tried to address the issue, without
:06:09. > :06:15.success. Businesses are cheering less regulation and lower taxes.
:06:16. > :06:18.Putting boulders up, that is the one thing that could throw sand in the
:06:19. > :06:25.engine of the global economy. And the travel ban. You have seen some
:06:26. > :06:29.of the big tech companies come out strongly against this, Google,
:06:30. > :06:34.people walking off campus. We knew that tech was anti-this in the first
:06:35. > :06:40.place. What is more interesting, some of the big banks are getting
:06:41. > :06:44.involved, sending a text to the Goldman Sachs employees, saying,
:06:45. > :06:52.diversity is at the heart of what we do. Business was excited about tax
:06:53. > :06:56.and regulation reform, but these barriers being erected, they think
:06:57. > :07:00.it might be a barrier to trade, and that is what might go the wrong way
:07:01. > :07:01.for them. A lot more from Simon on our
:07:02. > :07:03.website. Royal Dutch Shell says it will sell
:07:04. > :07:07.some of its UK North Sea assets to the oil company Chrysaor for up
:07:08. > :07:09.to $3.8 billion. Around 400 staff are expected
:07:10. > :07:13.to transfer to Chrysaor once the deal, which is subject
:07:14. > :07:15.to regulatory approval, Deutsche Bank has been fined
:07:16. > :07:23.$630 million by US and UK regulators for failing to detect and stop
:07:24. > :07:28.a Russian money-laundering plan. Under the scheme $10 billion
:07:29. > :07:31.was moved illegally out Deutsche Bank says it is cooperating
:07:32. > :07:36.with regulators and has put aside money to cover the cost
:07:37. > :07:39.of the settlement. Japan's central bank has
:07:40. > :07:41.finished its first meeting of the year by leaving interest
:07:42. > :07:44.rates unchanged, but upgraded its forecasts for the world's
:07:45. > :07:48.third-biggest economy. The Bank of Japan cited rising
:07:49. > :07:51.exports, easy lending conditions and stronger government spending
:07:52. > :07:55.ahead of the 2020 Olympics The strong yen is causing
:07:56. > :08:29.difficulties for some It is causing problems. Some of the
:08:30. > :08:38.biggest names in corporate Japan are posting results, and it is a less
:08:39. > :08:41.than stellar report card. We heard from Canon, their profit tumbled in
:08:42. > :08:48.the last three months of last year, hurt by the strength of the yen
:08:49. > :08:56.after the Brexit decision. Its operating profit fell 25%, following
:08:57. > :09:04.the UK's vote to leave the EU. We have heard from Sony, it is more
:09:05. > :09:10.than just the Sony, it includes movies. Their movies
:09:11. > :09:15.excite cinemagoers at the global box excite cinemagoers at the global box
:09:16. > :09:18.office, so they are having to take a hefty write-down on the value of
:09:19. > :09:28.their movie business. It is due out with its results this Thursday. I
:09:29. > :09:29.did see Angry Birds, but I was not their target audience!
:09:30. > :09:31.US stocks saw their biggest selloff yesterday since
:09:32. > :09:36.The markets looking unnerved by President Donald Trump's
:09:37. > :09:44.The dollar was down and the Japanese currency the yen and gold gained
:09:45. > :09:49.A rise in the yen often pulls down the Nikkei,
:09:50. > :09:55.and you can see its biggest daily decline since November.
:09:56. > :09:58.In Europe, figures out this morning showed an unexpected fall of almost
:09:59. > :10:10.1% in retail sales in Germany for the month of December.
:10:11. > :10:12.However, this indicator is often revised.
:10:13. > :10:18.But let's find out what's ahead on Wall Street Today.
:10:19. > :10:19.The Federal Reserve, America's Central Bank,
:10:20. > :10:23.starts its two-day policy meeting on Tuesday.
:10:24. > :10:25.The Fed has forecast three rate hikes this year,
:10:26. > :10:32.but it is expected to leave rates unchanged at this meeting.
:10:33. > :10:34.This is the first since Donald Trump became President.
:10:35. > :10:38.The Fed lifted interest rates in December by 25 basis points.
:10:39. > :10:41.Apple will be reporting earnings on Tuesday.
:10:42. > :10:50.It seems the revamped iPhone 7 will give the tech company a boost.
:10:51. > :10:52.Apple is predicting record-level revenues for this quarter.
:10:53. > :10:54.Analysts will be looking out for comments on the smartphone
:10:55. > :10:58.industry and expectations for the next iPhone.
:10:59. > :11:01.Finally, ExxonMobil, the world's largest publicly
:11:02. > :11:04.traded oil producer, will be benefiting from rising crude
:11:05. > :11:07.prices and it should be reflected when it reports fourth quarter
:11:08. > :11:17.Joining us is James Quinn, Group Business Editor
:11:18. > :11:29.A busy time in the US, it seems to be orientated and around the US,
:11:30. > :11:35.especially with Asian markets closed. Markets yesterday were
:11:36. > :11:40.focused on the travel ban, imposed late on Friday, eight. Have a chance
:11:41. > :11:48.to react Friday. The Dow Jones having its worst day since the
:11:49. > :11:56.president was elected in November. The bump was surpassed last week,
:11:57. > :12:03.but now investors are questioning whether or not the momentum can to
:12:04. > :12:10.-- continue. It is only a little bit down. Not terrible, it is all about
:12:11. > :12:19.momentum. A slew of results coming out today from corporate America and
:12:20. > :12:25.over the next week, so we will get a test of how the big culprits and the
:12:26. > :12:27.economy are doing, as opposed to whether the president will be good
:12:28. > :12:34.for the economy, the hopes and dreams. What impact are we expecting
:12:35. > :12:39.the president to have? There is the question of whether Janet Yellen can
:12:40. > :12:49.remain as Federal Reserve chairman, that is up to the president and
:12:50. > :12:54.Congress. The Fed will take a balanced view and hold rates. A rate
:12:55. > :13:01.hold is expected from the Bank of England as well. Central-bank week.
:13:02. > :13:11.It is also tech week. We have Snapchat's parent company's IPO. If
:13:12. > :13:18.you are a central bank watcher and a tech watcher, this is your week. We
:13:19. > :13:19.will see you again soon. He got away with me asking about his maths
:13:20. > :13:22.skills, we will tell you why later! We'll get the inside track why wine
:13:23. > :13:26.is making a comeback in Lebanon. You're with Business
:13:27. > :13:30.Live from BBC News. Britain's commercial aerospace
:13:31. > :13:35.industry is celebrating its sixth successive year of growth,
:13:36. > :13:38.that's according to figures More than 1,400 planes
:13:39. > :13:45.were completed in 2016, and it raised ?27 billion
:13:46. > :13:50.for the UK economy. Paul Everitt is the CEO
:13:51. > :14:08.of the trade body ADS. What could happen once Brexit kicks
:14:09. > :14:14.in? We do not tend to produce whole planes in the UK, we are integrated
:14:15. > :14:21.in a European system. Brexit will be a big challenge for us. We have a
:14:22. > :14:26.long cycle industry and we have record order books are fed of us,
:14:27. > :14:31.something equivalent to seven or eight years of work at current
:14:32. > :14:33.rates. It is not an immediate problem, but we need to use the next
:14:34. > :14:40.two years to get the conditions right for a successful Brexit, both
:14:41. > :14:44.for the UK and our European industrial partners, because we are
:14:45. > :14:50.an integrated industry, with complex supply chains, so for us the Brexit
:14:51. > :14:54.negotiations are important, but we believe they can deliver a
:14:55. > :14:59.successful outcome for our industry. Can you be specific about what a
:15:00. > :15:05.successful outcome is? Is that being out of the customs union or being
:15:06. > :15:09.firmly in the single market? There are key priorities. The number one
:15:10. > :15:12.is remaining part of the European Aviation Safety Agency, the
:15:13. > :15:20.regulatory regime for Aerospace in Europe, because that, in addition to
:15:21. > :15:24.providing our route to market, it is the organisation that negotiates
:15:25. > :15:30.technical equivalence with major partners in the US, China and other
:15:31. > :15:34.parts of the world. The regulatory regime is important, and achieving
:15:35. > :15:39.this frictionless trade is also important. We are not impacted by
:15:40. > :15:44.tariffs in the way the car industry is. The cost and administration of
:15:45. > :15:49.multiple border crossings, because our supply chains are integrated,
:15:50. > :15:53.our products are developed and produced in many sites across Europe
:15:54. > :15:54.before being brought together either here and then exported out
:15:55. > :16:04.elsewhere... Thank you very much for your time
:16:05. > :16:10.this morning. So good news for the British aerospace industry.
:16:11. > :16:12.You're watching Business Live. Our top story:
:16:13. > :16:15.As many big US businesses rally
:16:16. > :16:17.against President Trump's travel ban, one of his
:16:18. > :16:19.top economic advisors tells us that they should repatriate
:16:20. > :16:22.billions in overseas profits so they can put that money to work.
:16:23. > :16:25.A quick look at how markets are faring.
:16:26. > :16:30.They have been open for 45 minutes and you can see actually they are
:16:31. > :16:34.all in the green. We mentioned some retail sales figures out in Germany
:16:35. > :16:37.which were disappointing for December, but it doesn't seem to
:16:38. > :16:43.have had that much of an impact on investors.
:16:44. > :16:45.Now, think of the global wine industry and places like France,
:16:46. > :16:48.California and South Africa will probably spring to mind,
:16:49. > :16:51.but one of the oldest wine industries in the world is to be
:16:52. > :16:57.The country's civil war caused a lot of disruption for the sector.
:16:58. > :17:00.Well, now there is a revival of interest and our next
:17:01. > :17:06.He's the boss and head wine-maker of Domaine des Tourelles.
:17:07. > :17:09.The company was founded way back in 1868 by a French engineer,
:17:10. > :17:11.making it the oldest winery in the country.
:17:12. > :17:14.It's thriving, producing 300,000 bottles of wine a day and 350,00
:17:15. > :17:27.bottles of the local alcoholic drink, Arak.
:17:28. > :17:33.But just think about this - the Syrian war is raging
:17:34. > :17:37.Faouzi Issa is managing director and head wine maker at Domaine des
:17:38. > :17:50.There is two families that run this company now. Yes. And you are from
:17:51. > :17:58.one of those families? Yes, we are two families running the winery. We
:17:59. > :18:03.are a committee of four younger team all from the 30s, so we are the
:18:04. > :18:10.youngest team running the oldest winery. I bet you'd love to be
:18:11. > :18:14.making 300,000 bottles a day. I would be the leader worldwide! It is
:18:15. > :18:19.an interesting story. It goes back many, many years with the French
:18:20. > :18:24.influence at the beginning, but now it is purely a Lebanon wine grown by
:18:25. > :18:32.two Lebanese families, isn't it? Domaine des Tourelles is a wine that
:18:33. > :18:39.was the first winery to launch a ready bottle to the market because
:18:40. > :18:50.at that time it was producing wines for the monks. Today, we are putting
:18:51. > :18:53.Lebanon back on the map by producing high quality wines and most of the
:18:54. > :18:58.people everywhere in the world, they don't know that Lebanon has wine.
:18:59. > :19:03.Well, that's what I was going to ask you. Being in Lebanon, it is not a
:19:04. > :19:09.traditional wine making region. What specific challenges do you face
:19:10. > :19:14.being based in Lebanon? It's a fabulous work because you are really
:19:15. > :19:18.taking something exciting, something sexy to the world. Tell them,
:19:19. > :19:23.listen, you know, all the negative things maybe about this region, but
:19:24. > :19:27.come on, taste some good wines. Taste some great potential we
:19:28. > :19:31.produce in Lebanon. This is what we're really trying to make and
:19:32. > :19:36.we're succeeding. We're in 17 countries today. Your vineyards,
:19:37. > :19:41.where you are, is eight kilometres away from an enormous refugee camp
:19:42. > :19:46.full of Syrian refugees. You are keenly aware of the 1.5 million
:19:47. > :19:50.refugees in Lebanon. Your population is over four million. What impact
:19:51. > :19:55.does that have, if any, on what you do? The security impact, but
:19:56. > :20:02.globally, I mean, that's fine. I mean we are the closest country to
:20:03. > :20:05.Syria so we are the number one responsible country to solve their
:20:06. > :20:14.problems. If they want shelter, we're ready to cope with this. There
:20:15. > :20:18.is no direct impact on our business exactly, but of course, on in the
:20:19. > :20:21.long run it might be catastrophic. You can't employee any of the
:20:22. > :20:25.refugees, can you, because they haven't been processed and they're
:20:26. > :20:31.not in that position? No. Syria is one of your main markets, you export
:20:32. > :20:37.to Syria? We export a lot to Iraq as well. Now days a Syria, big quality
:20:38. > :20:42.industries are down. They stop producing so they are importing lots
:20:43. > :20:47.of niche products from Lebanon. Tell me about your Arak, how many bottles
:20:48. > :20:55.of Arak do you produce and tell me about the aniseed? We produce
:20:56. > :20:59.300,000 bottles of Arak a year. We are the leaders in the market, in
:21:00. > :21:05.the niche category. We use Anna seeds. It is a cocktail, isn't it?
:21:06. > :21:10.It is a spiritment we use it for cocktails as well, the Lebanese
:21:11. > :21:16.spirit, the Lebanese national spirit is the Arak. And you have had to
:21:17. > :21:21.start growing your own aniseed? Because of the problems in Syria, I
:21:22. > :21:26.launched my new plantation and last year we had the first produce and it
:21:27. > :21:30.was amazing, amazing and I think we will divert to Lebanese aniseeds
:21:31. > :21:36.very soon and I hope that we will play this, we will play a role of
:21:37. > :21:41.diverting aniseeds plantation from Syria to Lebanon. Well, we shall
:21:42. > :21:44.keep an eye on what you're up to. Thank you for coming in. It is
:21:45. > :21:50.fascinating and I know your wife is watching you in Lebanon. Just say
:21:51. > :21:52.hi. Hi Ruba. The whole family is tuning in. It has been good to have
:21:53. > :21:55.you. In a moment we'll take a look
:21:56. > :21:58.through the Business Pages but first here's a quick reminder of how
:21:59. > :22:01.to get in touch with us. The Business Live page
:22:02. > :22:03.is where you can stay ahead with all the day's
:22:04. > :22:05.breaking business news. We'll keep you up-to-date
:22:06. > :22:07.with all the latest details with insight and analysis
:22:08. > :22:10.from the BBC's team of editors around the world and we want
:22:11. > :22:12.to hear from you too. Get involved on the BBC
:22:13. > :22:14.Business Live web page. On Twitter we're at BBC business
:22:15. > :22:17.and you can find us on Facebook. Business Live, on TV and online,
:22:18. > :22:40.whenever you need to know. No excuses. The story about our
:22:41. > :22:41.maths skills. Not many of you have been in touch.
:22:42. > :22:53.It is a revelation? Those of us who have to use maths in our work, the
:22:54. > :22:56.bits that we have to use, calculations that we use all the
:22:57. > :22:59.time, they are fine, but the bits that you learnt in school, thaw
:23:00. > :23:04.don't have to put into practise with your work, they fall away and I find
:23:05. > :23:11.it with my kids, if you're talking about maths, actually I can't
:23:12. > :23:15.remember that! It is cobwebs. Citizen maths is launching this new
:23:16. > :23:18.online course that will allow you to go and refresh your maths skills and
:23:19. > :23:25.get up to speed. Very, very useful. A good idea. I'm on it. I'm going to
:23:26. > :23:28.do that. Will says mental arithmetic isn't needed since we have
:23:29. > :23:35.calculators on our phones. I don't agree. You still need to know how it
:23:36. > :23:44.works. How about when your phone isn't working? Wall Street Journal,
:23:45. > :23:53.we've got Mark Zuckerberg trying to reach China. I love the line that he
:23:54. > :23:56.even took a smog jog in Beijing? To woo over the Communist Party.
:23:57. > :23:59.Facebook has been blocked since 2009. A lot of people won't
:24:00. > :24:03.remember, Facebook was blocked along with Twitter in 2009 and they have
:24:04. > :24:08.tried everything to get back in. Not only because it is a big market, but
:24:09. > :24:13.because of the way that the Chinese use their social media. There are
:24:14. > :24:17.some big players here who are really, they use them in a different
:24:18. > :24:22.way, they use them as banking systems and payment systems all done
:24:23. > :24:25.through social media and Facebook is worried they are losing a
:24:26. > :24:30.competitive march here. Well, losing, they have not got in here.
:24:31. > :24:33.They are worried the Chinese having developed all the fantastic extra
:24:34. > :24:39.services on their social media sites will export them to the West and
:24:40. > :24:44.Facebook will be unable to survive. Do you think that's a worry that's
:24:45. > :24:48.going to become a reality? I don't think that people are loyal to any
:24:49. > :24:55.service. They will go to the one with the best services. Facebook
:24:56. > :25:00.itself is vulnerable to a nimble agile competitor and the chin he is
:25:01. > :25:06.are developing them. Let's talk about Cathay Pacific. They are
:25:07. > :25:09.looking to fly on rubbish. They are switching to biofuels? They have
:25:10. > :25:14.been working on these for years and years, but they are saying they are
:25:15. > :25:19.going to fly 80% flights just on biofuels. One of the hold-ups is
:25:20. > :25:24.safety. If you're a safety regulator, you don't want to certify
:25:25. > :25:29.that fuels are OK. I wonder if you could get a cheap flight and say,
:25:30. > :25:34."I'm going to donate all my rubbish for six months. Can I have a ticket
:25:35. > :25:41.to Shanghai?" There have been a lot of questions about the real green
:25:42. > :25:45.credentials of bio fuels, if they are diverting fuel that was meant
:25:46. > :25:49.for crops, are you really saving that much CO2? Cathay Pacific are
:25:50. > :25:57.doing the best they can. Thanks, Dominic. What's it called Citizen
:25:58. > :25:58.Maths? That's it. I will test my skills later. Thanks for your
:25:59. > :26:12.company. I will see you soon. The weather is looking pretty
:26:13. > :26:18.unsettled for the rest of this week. Some rain in the forecast and things
:26:19. > :26:19.turn windy for Thursday and Friday. Today though, it