01/02/2017 BBC Business Live


Similar Content

Browse content similar to 01/02/2017. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News with Sally Bundock


The war of words worsens between the US and European Union -


so what does this mean for trade between the world's two


Live from London, that's our top story on Wednesday,


In a growing rift between Brussels and Washington,


the head of the European Council says the new US administration


is "in the same category of threat as radical Islam".


We assess the fallout and what this means for businesses on both sides.


Seven is the magic number for Apple - the tech giant reverses its sales


slump thanks to its latest iPhone reporting its highest


And the markets in Europe navigate their way through the diplomatic


spat and assess the latest earnings news from some of the worlds


We'll talk you through the winners and the losers.


Now, is a five-day working week essential to make it to the top?


Later in the programme we'll be speaking to Bibi Hilton.


She's a high-flying advertising boss who's just been named on this year's


Computerised hedge funds have joined the ranks of the top performers


We want to know would you trust your cash with man or a machine?


Just put your cash in a tin under the bed! No, that's not my advice by


the way. That's just what some people are doing with it at the


moment! BP The US Army has been ordered


to allow the construction of the final section


of a controversial major oil It's a project supported


by President Trump and that perhaps reflects his support for fossil


fuels which is just one of a growing number of differences


with the European Union. A growing transatlantic


divide is emerging. The president of the European


Council says the new government in Washington is one of the biggest


threats facing Europe. In a letter to EU leaders


Donald Tusk told them to "use the change in the trade strategy


of the US to the EU's advantage" saying Washington's protectionist


outlook was a chance to look Meanwhile President Trump's top


trade adviser said Germany is using a "grossly undervalued"


euro to "exploit" the US The claims were rejected by


Germany's Chancellor Angela Merkel. The United States remains the single


biggest economy in the world, it is worth more than


$18 trillion in 2015. The European Union's is second


and closing the gap. $16.3 trillion is the combined


worth of it's 28 members. There also appear to be divides


on immigration policy, energy, So can the world really afford


for these two economic Paul Ivan is an analyst


at the European Policy Centre Paul, are they going to fall out? It


is looking seriously politically for the moment. It was quite surprising


to see such a strong language, I saw the letter of President Tusk and it


is a sign that things are pretty bad if we got to this point. From a


trade point of view, I think we don't have yet the sort of decision


that would seriously affect the trade relations, but the messages


certainly don't look good at the moment. The American administration


does have a point, doesn't it? Germany has done very well by being


the strong unit surrounded by weak economies and making the most of the


weak euro, over the decades really? Well, we all know that actually


Germany doesn't really like the current policies of the ECB and has


opposed the policies for a while. The ECB is an independent body. It


is also I would say, this way of looking at the individual member


states and let's sacred sizing individual member states and not


looking at the whole union, at the whole eurozone is not really helpful


in terms of by lateral relations. What about the trade deals that


exist at the moment? TTIP which doesn't exist, but could exist.


That's dead in the water, isn't it? If that's dead in the water, what


are the chances of doing the deals elsewhere? Turning your back as it


were on the United States? Well, certainly as the United States


become more protectionist, the EU will be forced to making deals with


other parts of the world. How easy is that going to be? Well, the EU


would remain a very big economy. You just mentioned there are a lot of


other countries in the world and big economy in the world which are


interested in trading with the EU, to trade in better conditions and to


trade more. I think the US is certainly going to miss this as it's


pulling out even from treaties that it or treaties negotiated such as


the TTIP. Thank you very much indeed.


Now let's talk Apple. After three-quarters in a row


of falling revenues, High demand for the iPhone 7 boosted


the tech giant and it reported its highest


ever quarterly revenues. In the last three months of the year


the firm sold 78.3 million iPhones - Sales in China fell almost 12%


to just over $16 billion. China has proved to be a difficult


market with many homegrown rivals Dave Lee says that Apple


was given a boost by strong They had a good holiday season,


higher than expected actually and the move to remove the head phone


jack from the iPhone proved to be a safe one despite many people being


suspicious that was a good idea. That worked out well, but Apple are


now saying for the rest of the year, don't expect huge sales in


comparison because they think many people will be holding off for the


next iPhone which isn't due until September. So it was a downbeat


forecast for the rest of the year, but they will be pleased to reverse


as you say, to reverse that trend of losing growth there across last


year. So a good result for them today, but they are being quite


tentative about the future. That was Dave Lee there.


In India an important day. Our correspondent is in Delhi. It can


tell us how it has affected the economy. Yes, I mean the Finance


Minister here called it a disruptive reform. One which caused problems,


but long-term benefits in a Budget speech that many people are calling


largely populist, he a lot for rural areas, trying to fin jobs and


boosting farmers' incomes and insurance and a lot on the


agriculture sector, the State elections are coming up, but


corporate India who I was watching the Budget with were disappointed.


They expected tax to come down. Many here are fearing that while


countries around the world are reducing the corporate tax, inviting


more investors in, India has not shown signs of it and therefore,


they worry that investment from India could actually flee abroad.


OK, thank you very much. Let's look at markets across Asia.


Hong Kong open today. It has been closed for a long weekend to


celebrate the Chinese New Year. Mainland China, the markets are


closed for this week. We saw upside for Japan which is interesting given


the yen is strong versus the dollar. However, the dollar has stabilised


in terms of its recent slide. Let's look at Europe. All headed


upwards. As far as markets are concerned, globally, there is one


story there and that's what's going to happen in Washington later today


at the Federal Reserve. And Samira Hussain has


the details about what's ahead The Federal Reserve ends its two day


policy meeting on Wednesday and they are expected to leave interest rates


as is. After all, this is their as is. After all, this is their


first policy meeting since President Trump has taken office. The Fed is


likely waiting for greater clarity on the president's economic


policies. Social media giant Facebook will be reporting earnings


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. Also reporting earnings on


Wednesday is Metlife, the largest life insurer in the US. Now, higher


investment income will boost profits for the company. In fact, in 2017,


Metleave and other life insurers are expected to see continued benefits


from rising interest rates and lower corporate taxes under president


Donald Trump's administration. Let's talk about the Federal


Reserve. The State's interest rates are going up and Europe's are


staying down. Well, that was its story and Janet Yelland is in the


middle of the political debate because some are wondering if the


new president will try and replace her, but she's there at the moment.


The message coming out of the United States is hawkish. They have raised


interest rates towards the end of last year and people are assuming


that trend will continue this year. We will see another maybe


three-quarter point increases in interest rates this year. The


interesting thing, that's not set into a US context. That really sets


the policy tone for the rest of the world. That doesn't mean to say that


other central banks are going to follow, but the door has been opened


and I think it's quite likely that the Bank of England for instance


towards the end of this year maybe contemplating the first increase for


a very, very long while and it's even possible that just with a


little bit of a time lag that the European Central Bank will be moving


in the same direction. Of course, we're all looking at the same sort


of things and that's rising inflationary pressure. We've got the


Bank of England meeting tomorrow. So we've got the Fed today, but also,


you know, while the Central Bankers are meeting with their teams and


making decisions on the cost of borrowing, all these companies are


reporting their earnings. What picture are we getting? I think


we're getting a reasonably positive picture out of companies and out of


the so-called macrosignals at the moment and people are obviously


worried for instance in the UK about the impact that Brexit will have,


but the real economy has done far better than you were being told on


your programme six months ago and the United States is picking up


momentum at the moment. That's clear. It's going to grow faster


this year than last year and even the European Union, it is an under


achiever, but growth in the European Union is going to be a little bit


faster in the coming year than it was last year. So a better


background for companies and their reporting season will be, I think,


quite reasonable. Richard, thank you very much.


I managed to do that whole interview without talking about Trump. Did we?


We didn't mention his name once! Is a five-day working week essential


to make it to the top? Later in the programme we'll be


speaking to Bibi Hilton. She's a high-fliyng advertising


boss who has just been named on this year's


Part Time Power list. You're with Business


Live from BBC News. It's all change at the top


of telecoms giant Talk Talk. Dido Harding is stepping down


after seven years in the job. She's being replaced


by Charles Dunstan who founded the business and will become


Executive chairman. Theo Leggett is in


the Business newsroom. Let's have analysis of what Dido has


achieved? Well, she has been in the post for seven years, Jamie. For a


lot of that time she was seen as a solid leader for the company. A safe


pair of hands, but there was one tremendous blot on her record which


I'm sure you can remember. That was in October 2015 when the company had


to admit that it had been the victim of a massive data breach. Initially


it thought four million customers might have had their information


stolen, but the figure was lower, it was about 160,000 customers. Some of


whom lost financial information as well. Now, the company has recovered


from that reasonably well. Its revenues have remained strong, but


that was a tremendous blow to customer confidence and it was also


a very big blow to the reputation of Dido Harding because it happened on


her watch and at the time executives at TalkTalk didn't know their


systems were vulnerable and didn't know that the information had gone


missing. So what do we know about the new team that's taking over in


May? Well, there is Tristia Harrison. And Sir Charles done ston


it was the founder of TalkTalk. He founded Carphone Warehouse and he


will come in as executive chairman so he will be a guiding pair of


hands for the business if you like and as a result of that, he's going


to be stepping down from a similar role at Dixon's Car Phone. Investors


at TalkTalk seem to be welcoming it. TalkTalk's shares were sharply up


this morning. Thanks a lot, Theo. Dido Harding was a guest on Business


Live not long ago. Cross-country commuters to save


hundreds of pounds. This is dear to my heart, the hours I spend online


trying to bring down the price of a trip of a cross-country trip when


you're trying to do singles and returns, they're going to bundle


them together and reduce the price which looks like it's a good idea.


Well, it's a good idea for me! Our top story: The new US


administration poses the same category of threat


to the European Union That's the startling claim


made by the President Meanwhile, Donald Trump is pushing


ahead with his plans to build a controversial new oil pipeline


in North Dakota. The US President has previously


voiced his support for the country's fossil fuel industry amid criticism


from international There is a lot going on when it


comes to Mr Trump. Let's move on. Working part time is something that


has traditionally been First, the part-time world


is expanding fast and, second, it's reaching the upper levels


of management in some Not surprisingly it's


been driven by women, many of them returning to work


after having had children. So, across the European Union,


in 2015 only 9% of working-aged That compares with almost


a third of all women. In the United States,


more people generally work Including almost 36%


of working age men. And the equivalent figure


for women is just over 64%. Our next guest knows a thing or two


about the benefits and challenges She's Bibi Hilton, Managing Director


of media agency Golin. She's on this year's Power Part Time


list that celebrates the UK's most Welcome. Thank you. You start. Tell


us your story. You either managing director of a very successful


advertising agency based in London. You did not start out part-time, but


you are now part-time. Explain how you got to hear and wide. I was


promoted to the managing director wrote about two years ago on


maternity leave. When I returned I wanted to make sure I kept that


balance in my new role as a mother and my new role as an MD and I moved


to working four day weeks, so I do not work on Friday. You got to that


level working full-time. Could you get further working full-time? You


get off the promotion ladder and you stay there because you are not in


the group for promotion. In our business that is something we are


trying to change. It comes down to job design. We are working hard to


make sure that flexibility is part of the roles that we create. Two


thirds of our leadership team, some of which are men, all work flexibly


as well. In a company like yours, small and nimble, your staff is very


important. You want to retain really good staff because they are the ones


who bring in the client and revenue. I can understand why as a company


that would be important. Is it a cultural thing you are generating


that is not seen elsewhere? That is the problem. We are people centric


business. Is important. The flexibility and the desire of people


to work more flexibly is a growing trend. Businesses in any sector will


need to make those cultural changes to adapt. I do not think it will go


away. Is it a luxury or is it good for business? That has been


criticism in the past, that it is apparent. But we have put this at


the heart of our culture and we have seen benefits. We have seen


retention go up. Keeping the staff there. We have seen more people


actively coming to want to work for us, and it has helped keep our


recruitment costs down. If you are the only people doing it, you stay


in that job because you realise you cannot go anywhere else to get that


perk, if it is a perk. It is not a perk, it is a different way of


working and it is reflective of the changing nature of the workplace.


What we have tried to do is change our culture and change the way we


structure our teams, the way we manage resources to counteract that.


I work part-time, you work part-time, so we are all part here,


but you do not work on the days you are not at work and that is very


important. How do you do that as the managing director of a big company


based in London with a lot of staff? Are you not tempted to get on your


phone on a Friday and have the odd conference call. You have to be


really disciplined and I work hard to be disciplined. I want to have


that day with my daughter, it is important for me. Because 10% of my


team work flexibly I want to set a good example and I want them to know


that when they do not work they are not expected to reply to e-mail. We


work hard to respect that time off. Shall we move on? You start this


time. Saudi Arabia's Oil minister has told


the BBC that supply and demand could balance out as early


as July this year. He said it would happen


because of the historic agremment that members of the OPEC oil


producers cartel stuck with non-members at


the end of last year. That deal was aimed


at increasing the price of oil. Khalid al-Falih was speaking


to our Chief International Saudi Arabia has always produced in


these parts to market demand. In the last two years our marketing


strategy is to sell to long-term customers who request shipments for


the next month to be scheduled. So, come July our assumption markets


will be balanced. The agreement at that time is to seize the ceilings


that will be lifted and Saudi Arabia will be responsive rather than


What other business stories has the media been


Richard Jeffrey, chief economist at the investment firm


Cazenove Capital Management is joining us again to discuss.


Man and machine. It is about the computer is taking over the world.


This is the list of the top 20. Are you surprised to hear this? There


are certain markets which favoured different styles of investment. Over


the last year it has been quite difficult to be active because the


market has done quite unpredictable things. It reacted very


unpredictably in the way people did not expect after the Brexit vote. It


reacted after the presidential election and that makes it difficult


for managers. The computer driven software which runs some of these


funds, so-called algorithms, were slightly more successful. You could


just follow the FTSE? You would not need an algorithm? They have always


outperformed? The markets tend to underperform the indices because of


costs. Algorithms give you a steady performance, but there are certain


market environment in which they will underachieve and they will


underachieve the best fund managers who have an active view and to


anticipate future movements rather than the second to second movements


they are thinking about a few months ahead. We asked you at the beginning


of the programme do you trust a man or a machine with your money in the


light of that story. Rees is saying market machines have an upper hand


in stable arenas. You are saying in the markets we have had in the last


few months perhaps the machine had the upper hand. I think it did. It


is because markets were so unpredictable because their


behaviour was difficult to anticipate. Ian says robots are not


likely to come back from the pub drunk in the afternoon. Another one,


the machine is the man's slave and my money goes to the man definitely.


Personally I feel the same way because I want to know that somebody


is thinking about the investment decisions on my behalf. It is


generally men who caused most of the financial collapses over the last


four handed years, isn't it? Not machines. There is always a good


woman behind a man! There's talk about card, will bear robots soon be


picking your shopping? Possibly in the future replacing thousands of


staff who currently pick the fruit and veg and pack it away and then it


goes on to the delivery van. You have said it is a threat to jobs. I


am told that when the wheel was invented that the climate then was


that would be a massive effect two jobs because, we have been carrying


things and now we do not have to. I do not think it will affect jobs. I


think some of the more menial activities will disappear, but there


will be more value added jobs. Let's hope you are right. That is all we


have got time for today. Had you for your company.


I am back tomorrow. And so am I. See you then.


A windy end to the week, potentially stormy on Friday because of deep


areas of low pressure moving in of the


Download Subtitles