08/02/2017 BBC Business Live


Similar Content

Browse content similar to 08/02/2017. Check below for episodes and series from the same categories and more!



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


very best.


Download Subtitles