13/02/2017 BBC Business Live


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Hello, this is Business Live from BBC News with Susannah Streeter


But can the Canadian leader soothe White House concerns about the giant


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


The US president says he hates the North America Free


We'll find out more when he meets the country's Prime minister today.


of Samsung gets ANOTHER grilling as South Korean investigators


probe the country's cash-for-influence scandal.


And this is the picture on the financial markets. Positive


territory so far. We'll find out about the latest


gizmo that can help Today


we want to know : when does Another day, another world leader


arriving to meet President Trump Today it's the turn of Canada's


Prime Minister Justin Trudeau. He differs in opinion from his host


on a variety of issues - So just how important is Canada's


relationship with the United States? heir countries share one


of the biggest trading In 2015, some $662.7bn worth


of goods and services flowed But that works in the


United States' favour at the moment to the tune of $12.1bn


because whilst Canada sells more goods to the US


than the other way round, America more than makes up


for it when it comes The value of the relationship has


seen massive growth since 1994 when the North America


Free Trade Agreement But during his campaign Mr Tump said


"Nafta was the worst trade deal in the history of this country"


and has pledged to renegotiate it. While most of Mr Trump's ire has


been directed at Mexico, Canada also has a huge amount


at stake, 75% of all its exports go to the United States,


so good relations will be important With me is US Political


Commentator, Kate Andrews. His two chalk and cheese!


Fundamentally different in attitude when it comes to big issues like


globalisation, immigration, refugees, and also their demeanour


and attitudes are different. Trump has come in with this blunt, brash


attitude whereas Justin Trudeau has tried to paint himself as the nice


guy, the guy you would want to have a beer with. Fundamentally different


characters, two major world players but I am sure they will try to be


professional and get along! Have they got any meeting points in


common? From Justin Trudeau his talk has been big against Trump when it


comes to immigration, he's soft and that a little and wants to talk to


him about economics and trade comets in the interest of both countries to


keep this free flowing of services and a relaxed flow of people across


the borders, millions of people are doing overnight stays in each


country and they will want to keep that up. He proposed this idea of


getting together to talk about women in business. That's got interesting.


It comes in with Ivanka as well, brings in cleverly because Trump


wants to be seen as being fairer to women. Justin Trudeau is using a


clever tactic. Ivanka will certainly be at the forefront of that. Trump's


daughter has made herself a world player in the sense of advocating


for women's rights and in the convention she was the one talking


about maternity leave, things the Republican party have not spoken


about for some time. She will be at the centre of that. A clever way for


Trudeau to put forward his feminist agenda while working with Trump and


his daughter in particular to achieve it. The key thing is finding


points in common, isn't it? It is important for Canada to secure those


exports. The pipeline is important, they agree on that. I think they do.


They have different environmental policies although Justin Trudeau


knows this will be a big moneymaker and a huge job creator, 2.5 million


jobs rely on American trade, this will make even more. Similarly,


Trudeau will be going into these talks like Theresa May, looking for


agreement. Thank you. Now onto other news.


Swiss voters have rejected a plan to reform the country's


corporate tax system, sending the government back


Business and political circles in Switzerland


had supported the plan, which was designed to prevent


taxes rising sharply for foreign investors.


However 59% of voters opposed the plan in


The government will now need to find an alternative,


which may involve higher tax rates for multinational companies.


Japan's economy grew for a fourth straight quarter in the final three


months of last year - thanks to strong exports.


The world's third-largest economy grew an annualised 1%


During a weekend meeting with Prime Minister Shinzo Abe,


President Trump held off from his previous rhetoric


against Japan for using its monetary stimulus to weaken the yen and gain


But there are concerns that rising US protectionism could still damage


Samsung chief Lee Jae-yong is being questioned for a second


time as a suspect in South Korea's biggest political


Mr Lee was questioned last month as part of the inquiry


into a scandal that led parliament to impeach President Park Geun-hye.


Give us the latest on this? The head of Samsung, Mr Lee, thought he was


off the hook when a court in the capital rejected his arrest warrant


last month. It may have been a surprise for him to have been


brought back to the prosecutor's office today. During the last three


weeks in investigators reviewed the case and decided there were new


aspects to the investigation that needed further questioning. Mr Lee


arrived at the prosecutor's office with a grim face and said he would


faithfully tell the truth. The allegation is that Samsung gave


millions of dollars in return for the votes of the national pension


fund in a big uncontested restructuring of the company. This


time around, senior executives of Samsung may also be questioned


alongside Mr Lee, and if the investigators feel they have


collected enough evidence that may merit his detention, the prosecution


team could file another arrest warrant. Kevin, thank you very much.


Let's check in with the financial markets now


Asian markets built on a global rally on Monday


following another record close in New


York on Friday, Tokyo stocks rose with investor


talks over the weekend between US President Donald Trump


and Japanese Prime Minister Shinzo Abe.


So is that trend continuing in Europe?


Let's take a look. Yes, it is. This is a snapshot of the major


industries just after opening, the FTSE 100, the ducks, and the cack 40


all in positive territory so far. Let's have more on this.


Nandini Ramakrishnan, Global Market Strategist at J.P.


Morgan Asset Management, joins us in the studio.


Everything looking a little healthier at the moment. Why is


this? In the recent few weeks we have seen strong macroeconomic data,


whether it indices that track production or employment, it's


looking good in 2017 which is a good sign for economics... Some of these


stocks of valid, I'm thinking particularly of the USA at the


moment. Yes, prices have gone up, and earnings really backing it, that


is the key question. A lot of exuberance and enthusiasm the Trump


victory. That's a generally market friendly condition, good business


practices, corporate tax rates may be being lower, that rhetoric means


American companies have rallied in the past few months. What indicators


are there that global growth will continue? We had some


better-than-expected figures about Chinese output. Chinese data has


been strong, they are using a lot of commodities, the fear, some quarters


ago, was that China wasn't going to be growing at that same pay the fact


that they are using larger amounts of commodities is helping things.


Commodity producers were some of the highest performers, gaining a couple


of percentage points. What is it about European growth at the moment,


it's getting especially critical when looking at rising debt in


Greece and ongoing debt in Italy, basically the Southern countries. It


will be a big challenge especially this year with so many elections on


the horizon for many years economies. Greece is the problem


that won't go away. We do expect the IMF and European leaders to figure


out a way to get the bailout extended. What about the growth


figures? Some say the growth is much better than people say.


Fourth-quarter GDP numbers of the Eurozone show that they were going


faster than the US are the same period. Normally we wouldn't say too


much about Europe versus the US. In some countries like Germany good


growth figures will help stabilise the region as it gets into this more


troubling 2017 with all these elections and Greek debt troubles.


Some figures said that Germany's surplus is growing by the day. In


comparison, in Greece there is a real disparity among the Eurozone


countries. That's a bigger challenge generally speaking, is at a project


or a union of 19 countries that will last through the test of time with


unemployment rates of almost 40% compared to Germany with


unemployment of four or 5%? It's understanding the dynamics and


hoping that this conglomeration of countries will last, going forward.


OK. Thank you. Thank you for talking us through the markets today.


We'll meet the man who wants to put a camera in your fridge.


I'm not sure about that, are you? They might see something very nasty!


You're with Business Live from BBC News.


The Co-op Bank says it is putting itself up for sale and is inviting


The bank, 20% owned by the Co-operative Group,


almost collapsed in 2013, and was bailed out


Let's speak to our our Business Editor, Simon Jack.


Hello, Simon. What more do we know about the for sale sign going up? We


know that ever since 2013 when it had a near - death experience and


was rescued by its lenders writing of those debts and turning them into


a stake in the company, a debt for a goodie swap, ever since then they've


hoped to earn enough to restore their capital position. And when you


don't have enough capital which the Co-op hasn't had for some time,


there are only three options. Learn your way out of trouble which is


very difficult in this environment, -- burn your way. Ask your owners to


put in more money, Co-op is a 20% owner together with hedge funds is,


that is unlikely because you can't earn a return on that, and the third


one is to find somebody who will take it on, added to an existing


business, get some economies of scale and work through it that way.


What they have decided is to take the third option. And that is a


sale. Who's the likely buyer? A tricky one because with a few


hundred branches and hasn't got the enormous scale some say you need to


succeed in retail banking. It is bedevilled by legacy issues. The


fact they haven't got enough capital, it's not how much any new


buyer would have to pump in to get it back to health. One name springs


out to me which is the TSB. The TSB itself was carved out of Lloyds


after the HBOS Lloyds merger, it has 650 branches and like all small


banks it's struggling to make money. Adding 4 million Co-op customers,


maybe to get economies of scale, they also have these local flavours,


the brand is a good fit, having said that the TSB has other priorities,


they've just separated from Lloyds which is a big IT project, it's not


the top of their list that if the price was right I think they'd look


at it, figure out that price for a troubled bank which doesn't have the


requisite scale will be very tough indeed. A tough moment for a bank


which has been around since 1872. Simon Jack, thank you for that


update on the Co-op bank. You watching Business Live BBC News.


Our top story, the Canadian leader Justin Trudeau meets US


President Donald Trump in Washington today.


The two sides do billions of dollars worth of trade,


but have differences over the future of the North America


A quick look at how markets are faring.


All of them up. All of them fairly perky with the FTSE up. The CAC


doing well and the pound and the dollar pretty stable where it has


been really for most of last week. About 125. Not much change there on


the currencies. We have had a fairly strong start in the Asian markets as


well with the Nikkei reaching a one-and-a-half year high as well


largely on the strength of a weaker yen.


Now let's take a look at how the so-called Internet of Things


The sector is estimated to grow to more than $24 billion by 2020.


Well, the term refers to the connection of devices


like kitchen appliances and thermostats to the internet.


This enables users to control devices when away from the home.


By 2020, some experts predict there will be four of these smart


devices for every human being on the planet.


Thanks to the British tech company, Smarter, the "internet of things"


is now being used in the fight against food waste.


It's set to launch FridgeCam, a wireless camera which can sit


inside any fridge and connect to an app, enabling users to check


exactly how much food is left when out at the shop.


Christian Lane is the founder and CEO of Smarter.


Thank you very much for coming in. You have the electronic eye in front


of you. That's the FridgeCam. Tell us how it works. The FridgeCam is a


wireless camera that you can put inside any fridge and connect to the


internet to make it smarter. I guess the real reason for creating it was


to eliminate food waste. More than 40% of our food on a weekly shop is


going to waste because you put it in the back of your fridge and you


forget what's there. On a practical, it doesn't look like it will take up


more than one shelf of my fridge. It takes the whole fridge. It corrects


it to the size of your fridge. So there is a lot of technology inside


the camera itself. It lasts more about six months. So it sits in


sleep mode for most of the time and it wakes up when you open the fridge


door. How can it tell the milk is low? It tells you when the milk is


removed from the fridge. How many times have we woken up to make a cup


of tea and realised that we're out of milk or you are you're just out.


If you're passing a shop, it will tell you... You will get a bleep?


Yes. It will replenish for you. I can see it might be useful given


that I'm quite small aye can't always see what's on the top shelf


of my fridge! Instead of going to the fridge,


you'll look at your app. It is for lazy people. Can't you look and


think what's in my fridge? What should I throw out? What should I


keep? I guess it is for people who want to be more efficient and for


people who want to see what they have got in their fridge when they


are out of the house of the it is hard to remember what you have got


in your fridge at home and that gives you the exact image that you'd


see if you were standing in front of the fridge. It won't tell you if


something is rotten? It uses object recognition to tell you when things


are going out of date. So every item in your fridge will have an expiry


date on. How does it do that? It has got to look at label? It uses a


learning algorism to tell you when the item went in the fridge and it


assigns an average shelf life. Milk will have an average shelf life.


We're used to CCTV cameras, but now we will have the cameras in our


home. Some people might find it creepy? I think now with the rise of


the connected home and security cameras, this is a normal thing for


people now. They want to be informed with better decisions and it is no


different to having a pet camera that keeps an eye on your dog. This


is something that just keeps an eye on your fridge for you. You started


two-and-a-half years ago. How easy was it to get into the market? This


is the internet of things market. Is it an open market? Is it in the


hands of the big players? I think the big players add pressure to


start-ups. It depends on your products. The connected home has


allowed us to create new products that are practical and useful. As


long as your product is a practical idea then it is very encouraging now


to get more traction. You only do fridges at the moment? We started


with a connected kettle and moved on to a connected coffee machine and


now we're moving on to connecting existing appliances. What's the


connected kettle? Is it popular? Do people want connected kettles? So


you switch on the kettle when you're walking home from work? You can pull


up on the driveway and start billing the kettle for you! Well, that's


going to save a lot of time. I don't mean to be sarcastic. Hackers could


get in and turn down your fridge cam and cause havoc. That's something


that a lot of companies are focussing on. We take security


seriously and we're always doing the latest technology. You moved on


since the opening the garage door. I was so excited when I saw one of


those. The kettle is one of our best selling products. Within two hours


it became a best selling kettle. There is a huge market. Just so you


can turn your kettle on three minutes before you get in your door?


Yeah, exactly. So it is connected with your other devices. It is about


having a seamless way of living now. It sounds fine until the technology


goes wrong. Technology is becoming so much more reliable.


Good to know. Thank you very much for coming in to explain the


FridgeCam. Thank you. In a moment we'll take a look


through the Business Pages but first here's a quick reminder of how


to get in touch with us. The Business Live page


is where you can stay ahead with all the day's


breaking business news. We'll keep you up-to-date


with all the latest details with insight and analysis


from the BBC's team of editors around the world and we want


to hear from you too. Get involved on the BBC


Business Live web page. On Twitter we're at BBC Business


and you can find us on Facebook. Business Live, on TV and online,


whenever you need to know. The front page of the FT. It is the


hot topic. After 20, 30 years of talking about executive pay,


something is being done about it. They are only getting excited


because Theresa May has a Green Paper about executive and threatened


them if they don't do something, something will be done to them. What


is that something? What the big investors are fearful of is


prescriptive rules from Government. They want flexibility and they want


to retain flexibility because they think it works, but they don't want


to be told what to do by the Government. So they are trying to


get their house in order. What about binding votes. There are know


binding votes on the money. No. But this year is an interesting year.


There are binding votes on the pay policy and how the pay is done that


came in 2014 so 2017, lots of the big FTSE companies will have binding


votes on pay policy. Theresa May did pull back from the idea of having


workers representatives on boards and many, you know, campaigners for


lower executive pay and fair executive pay saw that as a blow.


She talked tough on work representation, but ran hard into


company law. She would have to change company law. The story is


interesting. They are talking about L tips. You get your wage and you


get your annual bonus and you have a three or five year deal which gives


you shares in the company. Investors wanted these ten years ago and said


they are a good thing. Now, the wheel has turned and companies are


looking at scrapping them as part of this pressure from Theresa May.


Things are happening. Who do you think is to blame for high executive


pay? Do you think it is the shareholders? They haven't done


anything about it? They haven't had the power to do something? It is


called the agency problem because the big investors at most, most FTSE


100 companies own 5% or 10%, while the shareholders are the people who


should be policing this, it is difficult unless you corrale ten of


people together. Another story that made the business pages. The


Guardian is reporting on it. It is about the Treasury's reputation


coming under fire bass of the Brexit forecasts. George Osborne, you'll


remember before the Brexit vote said there would be an Emergency Budget


and the Treasury backed up the forecasts because it had only


prepared forecasts on the event of us leaving the European Union. It


didn't say what the upside might be. Some of the Brexiteers say the


Treasury's independence has been called into question. Consumer


demand held up very well and employment is holding up fine. They


are not the only one that is forecast doom and gloom. Everyone


bar the seven or eight economists that came out on the Brexiteers


side. Brexit hasn't happened. A lot of the economists would say they are


in the honeymoon period. We are benefiting from a weaker pound with


none of the bad stuff from Brexit come to pass yet. Even so it damaged


the Treasury's reputation. That's what the papers are reporting. It is


down to comments by a former treasury official who says this has


happened. I think we take these things with a long view, we have to


see how the Treasury does on not just one forecast. There was another


story about how gadgets of the future are going to be curved. They


will be our flexible plastic friends. A bit like the FridgeCam.


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


throughout the day on the beb live page. Goodbye.


-- Business Live page. Hello there. Good morning, well it


has been quite cold and quite grey for many parts of the UK recently.


The second part of the weekend just gone typically, we saw temperatures


around about three or four Celsius and there was a little bit of wintry


weather to be had,


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