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This is Business Live from BBC News with Sally Bundock and Rachel Horne.
Trump's travel ban gets stuck in court.
Another hearing brings further delay and confusion.
Live from London, that's our top story on Wednesday, 8th February.
Whilst judges grapple with the arguments for and against
the Trump travel ban businesses move into damage limitation mode.
We will talk you through what is at stake.
Also in the programme, Softbank,the Japanese
tech giant sees a big turnaround thanks to its investments
in the political hotspots of the United States and Britain.
Our team in the region will have the latest.
And this is how markets are faring in Europe at the moment -
several key companies have reported earnings.
We'll talk you through the winners and losers.
She has been described as the UK's most influential black person
and is chair of the country's biggest media agency.
But how tough was it for Karen Blackett to get to the top?
And as Barack Obama's been spotted Kite Surfing
in the Caribbean, we want to know - what would you do
to unwind after eight years in a tough job?
Is hanging out with Richard Branson on your bucket list?
Thank you for your thoughts. Some of which we can't mention on the
programme! We start with President Trump's
travel ban which has Lawyers for the US Justice
Department have been slogging it out with those for states of Washington
and Minnesota who want The appeals court judges court
in San Francisco are expected to give their decision later
in this week. Let's recap. President Trump has
been trying to temporarily ban people entering the US from seven
countries. He says this is about terror and keeping our country safe.
Whilst a stricter vetting system is put in place. But as you know, there
has been widespread protest against this ban. 127 companies have signed,
put forward their legal arguments and you can see some of the most
influence companies on the list. Apple, Google, Microsoft, Tesla,
Levis. They have filed court submissions. In the documents they
have argued multinational companies will have strong incentives to base
their operations outside the United States. At the moment, many of the
companies use a visa programme called H 1 B. This grants entry to
85,000 skilled foreigners a year and the tech industry relies heavily on
this visa programme. There are approximately three applications for
every visa. That's granted. That's some of the background. Rack to
Rachel. Moira Benigson is the Managing
Partner Founder of MBS Group which is an executive recruitment
agency based here in London. One of Trump's key campaign pillars
was about bringing jobs back to America. Are your clients concerned
about this? We're working for many of those companies because we have a
very big tech and digital division and fashion. They will become
concerned. Not right now because we're in a transition period. But if
you look at digital and tech companies in particular, their top
teams are very, very diverse and from all over the world. You can't
hold back progress and these days particularly at the MBS Group all of
our short lists are extremely balanced and come from all over the
world. They're not particularly from one country, even though we are here
in the UK. Now in terms of global recruitment, as you say, you can't
hold back progress, it is a very different market, I imagine now than
perhaps when you first started out when companies are drawing up their
short lists, it is from more than one country, isn't it? Absolutely.
So you know, in the, I would think ten years ago, if you were looking
for a role in the UK, everybody would probably be from the UK. But
we're all connected digitally, everybody is, socially, and in the
workplace and therefore, people don't look at that anymore. And we
find that in our fashion clients and in our tech and digital, CEOs are
getting younger and younger and their world is completely different.
They're not interested in borders. They want the right people in the
right jobs, with the right teams. Moira, with this potential travel
ban in the US, also with the issue of Brexit, what sort of concerns are
CEOs are these executives that you recruit coming to you with or what
decisions that wouldn't have shaped decisions that wouldn't have shaped
their decisions a year ago? Well, I think until, I think Brexit kicked
it off where the world was just becoming one place and is one place
especially for very senior people and we recently were bringing over a
CEO from France to the UK and he had signed his contract the day before
Brexit. Brexit happened. He phoned me the next day it say, "Will I
still be welcome in the UK?" It was a great shock for me and there I
found myself as an immigrant telling him everything would be OK.
And from the US have you any similar situations? Not yet, but recently
for one of our fashion clients, in fact, just going back, it's
generally been easier to get Europeans to go to the US than the
other way round. Americans are quite loathe and many don't even have
passports as we know, but in this particular instance the CEO said his
wife did not want to raise her children for the next four years in
America and they would be extremely happy to come to Europe. So I think
you might see the reverse in America where they might get a brain drain.
OK. Moira, thank you very much for your time this morning. A pleasure.
In other news, the world's second biggest producer of iron ore,
Rio Tinto, has returned to profit after a 12%
The mining giant was given a boost by the recovery in commodity prices.
Iron ore has nearly doubled in value over the last 12 months.
Rio Tinto raised its dividend by more than expected
Walt Disney's chief executive, Bob Iger, has warned that a trade
war between the US and China would be bad for business.
The entertainment company's boss told CNBC he was also critical
of an executive order signed by Mr Trump barring
migrants and refugees from several Muslim countries.
The company reported a surprise drop in sales to just under $14.8 billion
despite a strong performance from its theme parks and movie
divisions which now includes the Star Wars franchise.
Let's talk about Japan's Softbank. It snapped up Arm Holdings and it
has been chummying up with the United States and President Trump in
particular. It is doing well in terms of profits. 71% year-on-year
rise. What's the reaction? Now, Softbank
said it made $2.63 billion for the quarter after Sprint added more
subscribers than expected. This was the first full quarter since
Softbank coming pleated a $32 billion acquisition of Britain's
most valuable technology company, ARM. We know the founder and CEO of
Softbank has got big, pliing plans to make the company a company with
technology investments, moving away from the telecoms business to
becoming more diversified. It has got stakes in Alibaba.
There is the $50 billion investment in the US that he pledged when he
met with Donald Trump in December which would create 50,000 new jobs
all of which will aim to transform Softbank into a technology firm with
a difference. So much to take in there. Thank you very much.
We have heard from Softbank. We've heard from the likes of Disney,
General Motors, for the US yesterday alone, I think 80 companies reported
earnings that are listed on the S and P 500. It is keeping traders
extremely busy. This is how things went in general in Asia overnight
and the night before on Wall Street. Let's look at Europe right now. So
again, earnings are dominating. We've mentioned Rio Tinto and Rio's
shares up 3% in London. You can see the markets fairly flat, but we've
had Carlsberg out, brewing up a better profit as well.
The Danish brewer Carlsberg has reported a rise in full-year profits
The company says its expects a modest increase
And Samira Hussain has the details about what's ahead
Company earnings continue on Wednesday. We will be hearing from
Time Warner. The company is being bought by AT, but the sale has
been opposed by US President Donald Trump. During the election campaign.
So investors will be looking for comments on that. Now US coal miner,
Arch Coal will be reporting earnings. This comes at a time when
the Donald Trump administration has been looking to undue regulations
and support more mining. Investors and analysts will be watching for
broader comments on deregulation. Finally, the grocery store chain
Whole Foods Market will be reporting earnings. They are grappling with
competition and they want to shed their nickname of whole pea cheque.
It has been lowering prices and experimenting with its new value
orientated grocery brand. Joining us is Richard Hunter,
Head of Research at Wilson King We will talk about commodities,
aren't we? We have seen a bounce back in commodity prices. Do you
think it is sustainable? It could be. On the one hand you've got the
demand from the likes of China and indeed India as you were mentioning.
So demand is very possibly going to stay there, but the other thing that
the commodities companies have had to do over the last couple of years
is really start running themselves as a business. So they have been
cutting costs sharply. They have been divesting assets that they
don't consider core to what they're doing and in terms of the likes of
Rio that's so diversified across so many metals, it could very much be
sustainable now they've cleaned their books up a bit. It is
interesting you say that. We've got Rio Tinto's results today which are
better than expected and also they've boosted their dividend by
quite a bit which is very welcome, isn't it, having had a rough couple
of years? It is. Of course, particularly in the interest rate
environment we find ourselves in at the moment. Any boost to dividend
income is yet another attraction for shares as against other investments.
That follows on from BP yesterday and some other mining companies and
commodity companies. Are they back in favour now, do you think, these
stocks for portfolio managers, the commodity companies? It is fair to
say that they are a good hedge against inflation if we get to that
point, inflation could be coming to us a bit later in the year because
if we get inflation that will be UK-focussed, commodity companies do
99. 9% of their business outside the UK. That's an interesting one. But
whether investors, they still tend to be towards the higher end of the
risk scale so your common investor may not go towards the mining
stocks, but they're more popular than they were 18 months ago.
Richard Hunter you will be back to discuss the papers. And what he
would do after eight years in a tough job!
We've got Mr Obama. Mark said you'd burn your suit! I'm with you there.
I'd sell it. You'd put it on eBay. It depends how long you wore it for!
Still to come, the inside track on diversity in the media
from the chair of the UKs biggest media agency.
You're with Business Live from BBC News.
A day after the Government launched the Housing white paper,
one UK house builder seems to be going from strength to strength.
Redrow has just published it's half-year results showing revenue
rising 23% to ?739 million and they completed
nearly 2,500 homes in the last six months.
Their CEO John Tutte joins us from the london Stock Exchange.
John, thank you very much for your time this morning. As Sally said,
yesterday we heard Government ministers calling the UK housing
market broken. What's your reaction to that? Well, good morning
everyone. I think perhaps it was an unfortunate title for the paper. I
don't think it's broken. The industry has increased its output by
50% in the last three years. What was your response to the white
paper? There was mixed reaction. Most say they were quite
disappointed. The one thing to put in context is it is a consultation
document, and that consultation is open until the beginning of May. The
important thing is how it moves on from here. There is a whole raft of
measures proposed in there and that needs detail. It is good news that
local authorities, there will be more pressure on them to allocate
their housing and put their plans in place because 60% of local
authorities have not got plans in place yet. To put them under
pressure to do that will be good and to test the delivery of those plans
will be good. The measures they are
proposing on speeding up the planning system by putting more
resources into planning departments, having fewer conditions on planning
permission, is all good news and should help us bring outlets forward
and assist our growth. L'Oreal is selling the body shop potentially.
Their results are out on Thursday and they could be reviewing their
ownership. Our top story: President Trump's
travel ban has had its latest They are grappling with both sides
of the argument. The conclusion will be batted to the Supreme Court
Lawyers for the Justice Department told a hearing in San Francisco why
it should be upheld whilst those for Washington state made
A decision is expected later this week.
It is a really busy time for earnings. Depending on whether you
are Rio Tinto Allred row will depend on how you are doing today.
In the advertising and media world, diversity remains a challenge.
Karen Blackett's father told her as a black woman,
she'd have to work twice as hard to get anywhere.
She now heads up the UK's largest media agency.
It manages more than ?1.2bn of advertising spend for firms
Let's get the Inside Track with a media executive who's been
voted the UK's most influential black person, overcoming
hurdles to rise to the top of the advertising tree.
Karen Blackett started her career in 1993 at CIA Media Network.
She then joined The Media Business Group and was promoted to the Board
of Directors in 1999 when the group merged with MediaCom.
After climbing the ranks, Karen was promoted to Chairwoman
The firm now employs more than 1,000 people in the UK.
Karen is just a little bit older than me, so I feel a little bit
inadequate listening to that. When we realised you were coming in, I
said we would be talking to you about advertising, diversity and
apprenticeships. You have knowledge on a huge agreement of subjects.
What is the most important? I love my industry and I love what I do, so
advertising is top of the tree, but part of being good at advertising is
about having an inclusive workforces, and inclusive content
that you create, so diversity and inclusion goes hand in hand with
that. It is the buzzword in management school at the moment,
diversity, how to feel diversity in an organisation. Why is it so
important? There are so many studies that show when you have more
inclusive workforces and cos it benefits both economic play and
socially. Those companies which are more diverse tend to be those which
are more financially stable and successful. It is a buzzword because
it is common business sense. It is not for altruistic reasons, it is
business sense. If you have to sell a brand to consumers in any country
you need to reflect your consumers in the advertising content you
create and in the workplace. Being called an influential black person,
does it annoy you that that is still a label? It is not something that
annoys me, it is something I find embarrassing but brilliant. But it
is something that is important because I know when I was growing up
in Reading I did not have many role models. My role models were
immediate family and friends and in a business context I was not aware
of roles I could go into because there were not people like me who
worked in those companies, or so I thought. The powerless, the list
that I topped, they are really important because it provides role
model opportunities for people in the UK. Your dad did say you would
have a tough time ahead getting on because you were black and a woman.
Was that the case? It is true. My mum and dad came over from Barbados
in the 60s and he was concerned because they came over to a country
that they did not know and they had to try and navigate it and they had
to make sure that we would have a happy and successful life, me and my
sister. It was tough because people do discriminate and people hire in
their own images. At that time the advertising world was quite close,
nepotism did exist, and there were not many people like me who worked
in the advertising industry. However, when you look at the black
population in the UK and you look at the economic contribution of that
population, we are worth around ?300 billion in terms of financial
ability to spend. It is an incredibly important sector that we
have to tap into, because people in the UK by brands and products.
Unfortunately we have to leave it there. Thank you very much for
joining us. You can hear more from Karen online, she is on Twitter. We
are all having a Twitter chat. The rise of the robot is featuring again
and the impact of automation is fast becoming one of the biggest
challenges Bob governments around the world. The online retailer Ocado
is increasingly turning to automation. Let's have a look at
what is happening in their warehouses. This warehouse is
stuffed full of algorithms and machines learning, controlling 8000
of these boxes. Welcome back. This is from
Bloomberg. Explain this to us. It is what is happening in Australia and
it might ring bells here. How individuals are piling on debt,
mainly in mortgages and they are getting mortgages up to the hilt, to
quite high levels, which is OK at the moment, but interest rates might
go up. Where are they in Australia? They are about 1.5% at the moment,
but they could be on the way up. If you are highly indebted, each time
interest rates go up, they could cause problems. They have got some
bad debts and it is not crisis point yet, but keep an eye on it. Let's
take a look at Barack Obama kite surfing. That is what he has been up
to on a nice little two weeks away at Sir Richard Branson's Private
Caribbean retreat. There he is in action. What would you do if you
needed to take a break after a very demanding job? I am not sure I would
get on the speed style to Richard Branson. We will put it out there.
You never know. It could be water-based. I fancy the idea if you
had nothing to do for a month, a long cruise going to different
cities. That is not really kite surfing. What would you do, Sally? I
have a long bucket list, I have got three little boys. The world would
be my oyster. A little sleep. Sleep would be good. We have got a lot of
tweets. Some of you said you would head to the Caribbean. If Richard
Branson was offering, you would not say no. We have not got time to do
the next story. Thank you to Richard.
There will be more business news throughout the day on the BBC Live
webpage and on World Business Report.
It will not be asked tomorrow, we will be having our cat naps!
Good morning. It has been a cold start this morning and temperatures
will not rise a great deal today and it will get colder over the next few
days. A lot of cloud on the way and temperatures will be lowering and it
will feel cold as the easterly wind picks up. We saw at the beginning of
the week a band of rain moving across from the West, but it has now
got stuck on the east side of the UK. It is a very weak feature, but
behind it there is cold air that will be coming in on an easterly
wind. Some sunshine in western fringes of the UK, but for many
central and eastern areas it is cloudy, grey and misty and there
will be some showers around as well. The wind is not too strong just yet.
Sunshine in Devon, Cornwall and West Wales as well with highs of eight or
nine. But across the rest of Wales, the Midlands and southern England,
cloudy skies and there could be some wintry showers in northern England.
In Northern Ireland brightening up with some sunshine, sunshine in the
North West and the western isles of Scotland. Snow in the showers over
the Grampians. A few more wintry showers coming in on the breeze
overnight. Frost almost anywhere. Even under the cloud it could be
cold enough for temperatures close to freezing. There will be a fresh
breeze as we head into Thursday and it will freshen many parts of the
country, blowing in cloud. A hint of sunshine in sheltered western areas.
A bit more sleet and snow, no great amounts of snow, most of it on the
hills of eastern Scotland and the North East of England. But
temperatures will be lower than today. Nothing is coming in from the
Atlantic where it is milder. We have got a big block of cold air coming
in from the east. The wind picks up on Friday and it will feel colder.
Cloudy skies across the board and temperatures at three or four at the