17/02/2017 BBC Business Live


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This is Business Live from BBC News with and Aaron Heslehurst


tells the BBC of his fears for public debate and globalisation


because of fake news and extremist views.


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


Mark Zuckerberg has been talking to us about his worries that that


millions are being left behind by global growth which is leading


them to "withdraw" from the "connected world".


The boss of one of the world's biggest companies, Samsung,


And as always we'll bring you the latest on the markets which


for now are taking a bit of a breather


And we'll be getting the inside track on the talks


between France's PSA and General Motors which could


create Europe's second biggest carmaker and all the other big


business stories of the week with our Business Editor, Simon Jack.


Fear the global market rally will end is driving some


to pour their money into wine, but if you invest would you have


There is only one thing to do with wine!


The founder of Facebook, Mark Zuckerburg, has told the BBC


he fears millions of people are withdrawing from the globally


connected world and that fake news and the propagation of extremist


views online have damaged public debate.


It's an intervention for the social media billionaire.


Mr Zuckerberg has revealed deep seated concerns that the tide


is turning against globalisation, a concept facing increasing amount


He said people had been left behind by global growth and the rapid


changes the world has seen which have increased


He believes it had led to millions of people to demand to "withdraw"


from what he described as the "connected world".


And in a call to action, Mr Zuckerberg said that people


shouldn't just "sit around and be upset" but should act to build


His interview comes alongside the publication of a 5,500 word


manifesto he has written about the future of Facebook


Economics Editor Kamal Ahmed has been speaking to Mark Zuckerberg.


Interesting that he is saying he is concerned about the rise of


extremist views and fake news but many have blamed Facebook for that.


And he is holding up his hands. To an extent. I think he believes fake


news will be controlled other uses of Facebook and other social media


platforms. He is not a man who was about banning things. He wants to


put in control so people can decide they don't want to read things that


might be considered or are fake news. And he does admit that social


media platforms have been at least in part to blame for fake news and


for what he calls this polarisation of opinions. This very aggressive


environment many of us find ourselves in where you are attacked


for your opinions, it is not a discussion but an argument. And he


admits that the way that social media works with short form


arguments and aggressive environments has been a problem and


he wants to look at that as an issue. It is a very long document


setting out the future for Facebook. Do you think this is a manifesto for


Mark Zuckerberg to enter politics? I don't think so, he said to me did


not want to be up and audition but it certainly is political. -- he did


not want to be a politician. I think the boundary between politics and


business is more for the now than in the past and Facebook is one of the


most influential cultural phenomena. It matters about what we buy, who we


talked to come what we seek so its role is political. Whatever you


think of is political. Whatever you think of it opinions, he is one of


the few people who actually believes he has to have a role in this debate


about politics and where the world is going and he is willing to have


it and I can't imagine many other chief executives who would sit down


and write 5000 words with a degree of code in you agree or not with it,


but at least he is doing it. He is a rich man and they have had


controversies over fake news and privity and taxes paid and he did


not deal with those in this document, but at least he has an


argument and he puts it out there and you can agree or not. I don't


use Facebook, but we cover the stories and the numbers and they


added another 235 million last year. It is an incredibly profitable


business. They have learned how to monetise it. But has it changed the


world we live in? Certainly, yes. In terms of not just Facebook but many


social media platforms, they have definitely changed. But


connectedness, the notion of did it help or lead to the Arab Spring,


four example? Social movements, the fact that many countries that were


not open in the past have been made more open by the arrival of Facebook


and more generally, the Internet. They have had an effect but where we


are still struggling is what is the political role of these


organisations and what legitimacy do their leaders have in telling us


where we should be going? Nobody voted for Mark Zuckerberg. People


voted for Donald Trump, for Brexit in the UK, and I think that is where


the clash is. He has at least put out a manifesto about where he wants


to go and it is for others to agree or disagree with that. How did you


talk to him? On the phone, even to me, hello, it's Mark! And you didn't


recorded?! It wasn't for broadcast. He called you! Wow!


is in custody in South Korea. biggest companies, Samsung,


Lee Jae-yong has been placed under arrest accused


It's part of a long running corruption scandal which has led


to the impeachment of President Park and has now raised serious questions


about the leadership and direction of a company worth about 20%


Sharanjit Leyl is in our Asia Business Hub in Singapore.


Can I ask you, how much will this stick? Correct me if I'm wrong but


his father was also arrested in the past but there have always been


suspended sentences? It's not the first up we have seen a big South


Korean conglomerate in trouble like this and I know we have been


reporting this a lot over the last week but it is also important to


stress that Mr Lee's arrest does not reflect a court opinion on guilt or


innocence. It is a potentially serious crime, and it assumes a


flight risk. Bearing in mind it does not mean any guilt at the moment. We


have been reporting this case which is linked to the impeachment of the


president of South Korea, President Park. Prosecutors are accusing Mr


Lee of giving donations to organisations linked to a close


friend of the president. This is when it started and they alleged


this was done to win government support for a big restructuring of


Samsung that helped create a smooth transition of leadership in favour


of Mr Lee who is standing in as chairman for his ill father who you


mentioned. Mr Lee and the Samsung group deny any wrongdoing. He is


being -- and he has been questioned before but prosecutors decided not


to arrest him. He has now been questioned for a second time and was


arrested today after the court acknowledged that it was necessary,


in light of a lot of newly added criminal charges and evidence that


come light. So the boss is behind bars but what direction now for the


company? It is going to be difficult for them to continue in this


situation. Indeed it is. In the near term, the prosecution has about 20


days to file formal charges and Natalie this is not having a good


impact on Samsung shares which fell by about 0.4% today although the


broader Korean index ended flat. And the reason that is so much interest


in this story globally is because Samsung is one of the world's


biggest Tektronix companies and for the head of the company that thrives


on up premium brand image to be involved in a corruption scandal


causes a huge embarrassment -- biggest electronic companies. Mr Lee


is vice-chairman of the company but since his father suffered a heart


defect in 2014 he is considered as defect in 2014 he is considered as


the de facto boss of the entire conglomerate and with his future in


doubt, the company might have to scrambled to find a suitable


replacement if his arrest today leads to him possibly being jailed


in the long-term. Thank you for the update and have a great weekend.


Toshiba shares have tumbled another 10%.


It reflects the continuing uncertainty over the future of the


company. They had to reveal the site of the write-down of its US


business. The share price is now about 60% lower than what it was at


the end of December when the problems were first revealed. The


company may have to be removed from the Tokyo stock exchange and taken


over by the Japanese government. Hanjin Shipping used to be


one of the world's top But now it faces the final curtain,


as Hanjin heads to a court in Seoul, The company sought protection


in August last year, after creditors refused to rollover


debts which surpassed A slowdown in the global economy,


and trade were cited as the main Let's look at some of


the numbers in Asia, stocks are taking a breather


from that recent rally. You know, for the markets of late


it's been Trump on - The dollar's inched higher and we've


got quite a bit of optimism over possible renewed supply cuts by


Opec, and that's lifted oil prices. Europe is also likely


to stop and breathe today, as well as investors taking a little


money off the table, cashing in a bit and taking some


of those profits. OK, let's find out what'll


be making the business Wall Street heads into the close


of the week still gripped by the political drama playing


out in Washington, DC. On Friday, it is expected that


President Trump's choice to lead the Environmental Protection Agency,


Scott Pruitt, will be But opposition to Mr Pruitt


as the chief environmental regulator has been fierce,


not least because of his stated scepticism about the extent


to which humans have His position as one


of the government's lead regulators will have big implications


for many businesses. Meanwhile, the Trump


administration's desire for fewer regulations and more infrastructure


work is already expected to have boosted demand at the farm machinery


maker Deere Company. Deere reports earnings before


the markets open, and shares have risen more than 22%


since the election. Joining us is Richard Fletcher,


the Business Editor from The Times. Sorry to interrupt you! Let's talk


about this stutter in the global rally. Why do you think it is? Have


investors been too optimistic? They seem to be pausing after a great


start to the week with all of the four major indices in the US all


closing for four convicted of days, a feat last achieved in 1995 so a


good start to the week. It seems there has been a bit of a pause with


the Dow Jones eking out a slight gains last night but the other


disease were down. We will get these promised tax cuts from President


Trump. -- the other indices. Even if they will be phenomenal! That might


push the market higher but there seems to be a pause at the moment.


We were talking about Han Jin-soo pink, that is a big story and it


reflects global demand -- we were talking about Hanjin shipping.


People look at that about global trade and we had positive data in


Asia at the start of the week would help send equity market higher so


the picture is still slightly confused and people will have to get


used to a president who will spend 75 minutes on a combative press,


but! You will take us through the papers when you come back and we are


going to start investing in wine and do you have the willpower not to


drink your investment? I think you are in the same boat as me! I am


sure of it. Still to come, we get the inside track on what could be


your's mega motor merger of the year.


The UK can be shielded from some of the worst excesses of global food


price swings if it produces more of its own food.


New research reveals that only 52% of food eaten in the UK


comes from British farmers, and Britain must become more


self-sufficient in food production and build up a stronger local food


sector in the face of global uncertainties.


Our business reporter Sean Farrington is at


I don't know what you are handling, and aubergine? Where is it from? A


stripey aubergine from Italy. A pak choi. 95% of this thread is from


Italy and three quarters of the fruit and veg we get in the UK is


imported. We grow more of our food when it comes to milk, eggs, dairy


and meat. But in the UK, are we up for growing more here and


potentially having to pay more for it? Adam Leyland is editor of the


Grocer magazine. Your readers and customers, are they up for it? Of


course. And they do buy it. For example, strawberries today, for ten


months of the year, you can buy British strawberries. So where it is


possible and practical, where there is not too much of an excessive


cost, of course they are. But it has to be within reason. You can't


expect consumers to suddenly turn off the switch and say, we no longer


want to buy salad and courgettes and that Mediterranean diet all year


round. That is no more realistic than saying we will turn off


Facebook and social media because of fake news. It is here, we love it


and it is the supermarket's job to deliver it. Just to update you on


lettuce, I spotted a few earlier, so they are back in stock. But it is a


difficult question for supermarkets to answer. Do they go first and


start asking for more British produce, or does it take customers


to ask for them first? Are we going to get a nice tomato like this being


grown in the UK in the middle of the winter? Probably not. Sean, some


would say the supermarkets might ask for locally produced stuff, but they


have to stop screwing the farmers. Farmers have a lot of questions,


yeah. Facebook founder Mark Soderberg


tells the BBC that his fears for public debate and globalisation


because of fake news and extremist views -- Mark Zuckerberg. The boss


of Samsung has been arrested in South Korea over a wide-ranging


corruption scandal. A quick look at how


markets are faring.... Some businesses are cashing in on


taking their money off the table. I am not sure if those figures are


right! I don't believe they are correct, so let's get rid of them.


And now let's get the inside track - PSA Group, maker of Peugeot


and Citroen cars, is in talks to acquire General Motors'


European business in a deal that would transform


We're now joined by our business editor Simon Jack


I think those market boards are wrong too. Let's talk about this


deal. It is huge, but there is concern that it will lead to a loss


of jobs in the UK. And that is concentrating minds in Westminster.


Probably not just the UK. This is a fast-moving deal which caught us all


on the hop. And you tonight, we got an announcement from General Motors


that they were in talks with PSA, which owns Citroen and Peugeot, to


look at options which might include selling the whole lot of them. And


it became clear that that was the real thing. You had the president


and chief executive of General Motors flying to Germany and enter


the UK to meet unions and politicians in both countries. You


don't do that unless you mean business. In this country, we have


two macro. Citroen and Peugeot have 14 plants in Europe. Opel are known


as Vauxhall here. They have eight in Europe and two in the UK.


Altogether, you have 24 plants, which is too many. Everyone thinks


there is massive overcapacity in the European car manufacturing market.


So some are going to go. Add to that the fact that the new boss of


Peugeot Citroen is a famous cost cutter who slashes and burns, and


you have plants all over Europe thinking, are we safe here? You


Brits are very efficient at producing cars. They are going to


look at efficiency. Do you do better at making cars here than Italy?


There are lots of different measures. GM has been losing money


in Europe generally and in the UK for years. They have lost something


like $15 billion in Europe since 2000. Last year, they would have


made money in the UK, had it not been for the fall in sterling, which


meant some of the imported parts were more expensive and the money


they made from car sales in the UK were lower because of the weakness


in the pound. There will be a massive scramble. The car industry


is always such a political fight. You are going to have the French,


German and UK governments scrambling to protect jobs. But in that fight,


there is a handicap because the French government is a 14% owner of


Peugeot Citroen. The Peugeot family is a 14% owner of Peugeot Citroen,


some two French entities own 30% between them. Show France is going


to win. The odds are stacked in their favour. Greg Clark is the


Business Minister in the UK, and he is going to have to turn on the


charm as he did with Nissan to get them to stay in the UK. Thanks,


Simon Jack. Nearly 4 billion passengers took


to the skies last year and the airline industry expects


that number to double over No wonder taxing passengers is seen


as an easy way for hard-pressed But in the latest of


our interviews looking at the health of the airline


industry, the head of the body representing European airlines told


the BBC that imposing passenger It's good money for the government,


but what you've seen as a direct impact is that passengers have


started moving to other airports. In the case of Schiphol


in Amsterdam, passengers have See you see a migration or a move


away from those airports where this additional aviation tax or air tax


is being implemented. So it's really only short-term


gains for government. In Holland in 2009,


they realised the economic damage because of less passengers


and less income was really affecting the Dutch economy


as a whole, interestingly enough. So the Dutch government


abolished the passenger tax and within one year,


the economic benefits Today, Schiphol is a very


successful airport. They abolished it, and it has more


economic benefit and hence also to the government,


because more economic activity means more tax revenue


for the government anyway, So we've been able to show


in a number of countries that it's actually more damaging than anything


else, and mid to long term, is more damaging for the economic


impact and hence for government tax revenue, having a tax rather


than not having a tax. What other business


stories has the media been Richard is back. We noticed this


story. Have you ever invested in it? No, but my father bought me a bottle


of one this Christmas and said not to drink it for two years. Last


night, I was thinking I might have to drink it. We will see whether I


have the patience. There is much more in interest in wine as an


investment because there was a belief that maybe the global rally


is nearing an end. Do you think wine would be a good investment?


Obviously, there are lots of investors at one funds saying what a


great investment it is. These alternative investments always have


a slightly patchy record. For a few years, they have a terrible year and


had lots of Chinese investors pushing up the prices. But investors


are looking at whether this is an alternative to the other safe stores


of value like gold etc, where people put money when they are not sure


about putting it into equity markets. But they do have a patchy


record. They are not one for the amateur investor or the drinker.


Don't point at me! Another area where people are putting their money


is in voice-activated technology. Google homes is taking a swipe at


Amazon. Absolutely. Anyone who has ever used the Alexa service on


Amazon will recognise this. You can have a device in your home like


Alexei when you say, order me some paper towels, Google, and I will


order you some paper towels after telling universe. The idea is that


the web will move to voice command. We have moved away from desktop


computers. Most people now use iPads or phones. The idea is that next, we


move to voice command. If you come round to my house, you can order the


wine. Do you have one? We played with one. We only used it to ask it


jokes. Richard, always a pleasure. Have a great weekend. Wrap it up,


Susannah. You have been watching business life.


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


If you have been enjoying this step toward something milder and more


springlike, that continues all the way through the weekend and into the


start of the next week before things turn cooler again. This morning, we


have air coming in off the Atlantic, bringing quite a bit of cloud. The


thicker cloud extends from Scotland, Northern Ireland the Midlands and


the south-east. It has some rain and drizzle on it. Either side of it, a


chilly start. Some mist and fog around here. But here is where we


see the best of the day's sunshine. There will still be cloud here


during the day. Some rain and drizzle, especially towards the


West. Breeze in Northern Ireland. Foremost, a light wind. For most, it


feel pleasant. Best favoured around parts of East Devon Somerset and


eastern parts of Scotland. Tonight, we continue with temperatures above


where they should be for the time of year. It will be cooler in East


Anglia and the south-east. The rain will clear Northern Ireland quickly


on Saturday morning. A wet start in Scotland. Eastern Scotland stays


dry. West of Scotland will brighten up later. In north-west Wales, after


a bright start of the day, it turns cloudy, with outbreaks of rain. If


you isolated spots of light rain. Temperatures will be well into


double figures for most of you. We keep the westerly flow as we go


overnight. Some spots of rain or drizzle from the club. Many will


have a dry day on Sunday. We could have something even milder on Sunday


night into Monday. We will see heavy bursts of rain developed across the


north and west of Scotland. Patchy rain and drizzle across other parts


of the UK. But with some breaks in the cloud and sunshine to the east


of Wales and across eastern parts of England, this is where we could see


temperatures on Monday afternoon which the mid-teens, maybe as high


as 17 Celsius.


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