24/02/2017 BBC Business Live


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Five million US factory jobs have been lost since


the turn of the millennium, but what's to blame?


We'll ask an expert later in the show.


Also in the programme - knock off - get outta here, go home early,


Japanese firms bring in a 3.00 pm finish -


Question is, can it really change a culture that has a word


And Wall Street did it again - wow on the Dow -


As you can see, Europe is slightly off today. We will tell you why.


And, this week on BBC News we've been looking at the issue


Later in the programme we'll speak to our producer


Johnny Cassidy gradually lost his eyesight when he was


talking to us about his unique experience of the newsroom.


Today we want to know - with Japan allowing workers to head


home early on a Friday - would you like to see this


Is it overkill or should employers be more sympathetic?


I tell you what, when you start at 4am in the morning, I don't want to


go to 3pm! "We want products made in America -


made by American hands". That was the pledge of US


President Donald Trump when he addressed cheering workers


at Boeing last week. And he continued the theme


on Thursday when he met with the bosses of more than 20 top


US companies at the White House - the likes of General Electric,


Lockheed Martin, Ford and Dell. He told them he plans to bring


millions of manufacturing Well, according to President Trump's


official website, since it signed the North American Free Trade


Agreement with Canada and Mexico - known as NAFTA - more


than two decades ago, America has lost "nearly one-third


of its manufacturing jobs". And I tell you what -


official numbers do seem America's Bureau of Labour


Statistics says 5 million factory That's left just 12.3 million


Americans employed in manufacturing - well under one in ten


of the workforce. Definitely a huge decline


from the one in four who worked But are bad trade deals,


and cheap Mexican and Chinese Or is it simply the


march of technology? One recent study by Ball State


University says the vast majority of these jobs -


85% - have gone Persuading companies to reverse this


trend could be difficult. The Boston Consulting Group


estimates that a human welder costs $25 an hour to employ,


while a robot costs less than a third of that - around $8 -


to do the same job. Dr Michael Plouffe, Lecturer


in International Political Economy Thank you for coming in this


morning. Let's start with this jobs issue. The latest figures we have


had out of America would suggest the economy is at full employment. If it


is at full employment, why is there a need to create more jobs there and


secondly, is it really full employment or is there more the


figures? The employment figures do not reflect the distribution of


employment in manufacturing has taken a hit over the last few years.


I would be optimistic about what these figures mean. They are likely


to be biased and there are people who have no chance of finding


employment. So that does not take into account the figures of people


who have given up looking for work? Exactly. When it comes to creating


jobs, given the information Aaron has told us, how realistic do you


think it is that President Trump could bring back these manufacturing


it would be difficult to do. He has it would be difficult to do. He has


floated the idea of a parallel law which has no prospect of lasting or


getting by without signing significant repercussions on an


international level -- the tariff wall. His best option is to provide


jobs and vocational training. Just touching on that, if Trump and his


team were being creative, he wouldn't be trying to get rid of


robots to put back humans into place because companies will not do that,


it is unrealistic, but they should be looking at creating completely


new industries as the world moves forward, in terms of technology and


things like that? Yes. Unfortunately this goes against the Republican


small government ethos. A small problem! We told you about the


meeting which happened yesterday, 20 big companies meeting President


Trump and it did seem to be big smiles, a lot of enthusiasm and


optimism, if we are saying he cannot bring back these manufacturing jobs,


the technology has moved on, why are these big CEOs not coming in with a


more demure expression. They were very agreeable yesterday!


My guesses they are being cautiously optimistic. Rather than the wall


which Rex Tillerson is trying to calm the Mexican government down


about, but there are other options which they could potentially benefit


a great deal from. Doctor Michael Plouffe from UCL, thank you for


joining us. Let's touch on some other stories.


Uber is being sued for stealing trade secrets


Waymo, set up by Google owner Alphabet, is taking legal


action against Otto, the self-driving vehicle business


that Uber bought last year for $700 million.


The lawsuit argues that former Waymo manager Anthony Levandowski


took information when he left to co-found the venture.


Uber says it takes the allegations seriously and will review


China for the first time became Germany's most important


trading partner in 2016, overtaking the United States,


which fell back to third place behind France.


German imports from and exports to China rose to $180 billion


last year, Federal Statistics Office figures reviewed by Reuters showed.


France remained the second-most important business partner


with a combined trade volume of $176 billion.


The United States came in third with $174 billion.


Heathrow airport says it served a record number


75.7 million people passed through its gates in 2016,


Cargo volumes were also up - so was revenue.


The boss is calling it a 'milestone year' -


partly of course because the UK Government has announced its support


China's internet giant, Baidu, has reported a fall


in its quarterly revenue following a government-driven


Sales fell a less-than-projected 2.6% in the fourth quarter after it


instituted measures to comply with regulatory restrictions


and cut the number of ads it displays alongside results.


Tim McDonald, in Singapore, has the details for us.


Good to see you, Tim! Hello. That is right, the latest results showed


that Baidu did not have a good last quarter. There was a government


crackdown on health care advertising in particular, which accounts for 20


to 30% of the company's search revenue. The reason for the


crackdown is because its student died after undergoing experimental


cancer treatment it discovered through the search engine. Revenues


have slipped by nearly 3%. Also it is in an intensely competitive


market and Baidu has two fend off competition from China's other


Internet giants. But it is bullish, predicting revenues to rise for the


first quarter of this year. OK. Tim, do you want to answer the pineapple


question now or not? I am OK with pineapple. There we go, that is what


we wanted! 24 hours late but good on you! We had been waiting.


The shares have been hit by a fall in the price of copper and other


commodity prices. Keep your eyes on Washington, we will be talking about


that very shortly. Click over to Europe because the European markets,


do we have them? I think so. They are not there! The markets are


supposed to follow suit but I tell you what, Wall Street, we will tell


you about that in a minute, Wall Street is powering on. The tenth


straight session of games. More records being broken, one thing


after an. Let's find out from an expert.


Joining us is Simon Derrick, Chief Markets Strategist,


Ken straight games, is that because of Trump or something else? -- ten


straight games. We have a cautious Fed, we also like the fact we are


not going to be calling China are currency manipulator yet. The story


is, the interest in Europe. We have rising concerns about political


events in the Netherlands, France and possibly Italy and Greece. That


towards northern Europe. It is towards northern Europe. It is


pushing it towards German bonds and pushing yields down. Bonds and


yields, bonds we are talking about government debt, the retainer get on


that investment. By lend money to Germany for the next two years, I


would get negative interest rates on that. I would have to pay .9 of a


percent. For the privilege of lending them money. If I had the


choice of lending them money or paying for a privilege or paying the


money to the US and receiving a 2% plus interest rate, what would you


rather do? That is keeping interest rates relatively speaking controlled


in the US. While I have got you on bonds, government debt, we heard


from the Treasury Secretary for the US yesterday. He mentioned something


which you don't hear about much, a 50 year bond, a 50 year debt. Would


that be America saying he, that be America saying he,


investors, we are going to sell you 50 years of debt? What they are


going to do is instead of borrowing money for 20 years or 30 years, they


are borrowing for 50 years. This is the story they have talked about for


the last three months. The idea is interest rates are so low, why not


borrow money for as long as you can. The fact that you will not get your


money back for another 20 years means that money will be in the


system for a little longer. It is also good for equities. But it is


bad for the dollar. If you look at the course of the last 12 hours, the


dollar has started to come under pressure on the back of that. That


is something with you to keep a close eye on. Simon Derrick, thank


you. You will be returning to discuss some paper stories including


the premium on Friday. Do you get early doors on a Friday? I am going


home now! No, you are not! See you in a minute.


And this week on BBC News we've been looking at the issue


Later in the programme we'll speak to our producer


Johny gradually lost his eyesight when he was a teenager and he'll be


talking to us about his unique experience of the newsroom.


You're with Business Live from BBC News.


Let's talk about RBS. The Royal Bank of Scotland has just reported


another massive loss. The bank - which is 72%


owned by taxpayers - is also planning cost savings,


which will mean job cuts The bank has lost ?7 billion in 2016


- that's more than three Our business correspondent


Theo Leggett has more. Was this a surprise? No, it didn't


come as a surprise at all. RBS is really still paying for the sins of


the past. If you remember, in the run-up to the financial crisis


around 2007, RBS was positioning itself as a major international


bank, huge ambitions. For a while it was, by some measures, the biggest


bank in the world, but overstretched itself and is still paying for the


consequences of that, still restructuring and on top of that


there was a fair amount of wrongdoing within the bank. You can


see that in today's figures. It had to set aside around ?6 billion to


cover the legal consequences of past actions, like the mis-selling of


mortgages in the United States, still being pursued by the


Department of Justice for that. That burden hasn't gone away and won't go


away for another year or so. On top of that big restructuring costs and


the bank is trying to reposition itself as a UK focused bank,


withdrawing its international ambitions, so there are


restructuring cost associated with that as well. Is RBS effectively a


zombie bank? That's one question we put to the chief executive of RBS a


short while ago. Certainly it's been a long period of time and this is


what happens when a bank goes wrong and you have to put it right.


Underneath, this is an amazing bank. We make ?1 billion profits every


quarter but then it is offset by the one-off charges, predominantly from


the past and that has been huge. This year alone 24 billion we have


put into the UK economy through lending, 320,000 home loans, ?9


billion has gone into small and medium-sized businesses to get the


economy moving. That's the sort of bank we really are underneath it


all, fantastic brands, fantastic people serving customers every day.


The big boss of RBS. Also thank you to Theo. Have a great weekend.


Always great having you on that. Bye-bye.


As part of our Disability Works coverage, this week here on the BBC


we've been exploring the experiences of disabled people in


We've had various guests on this show, focusing on the experiences


of disabled entrepreneurs and employees, and examining how


different businesses are innovating to help disabled people.


The BBC's Johny Cassidy has been central to the production


Thank you for joining us. Good to see you.


Glad to be here. Funny being on the side for a change. Yes, I was going


to say to our viewers, Johnny works in our department.


You are always e-mailing us for our inside track guests.


What is your experience, what is your disability, what caused it?


I am blind, can't really see too good. I lost my eyesight as you


mentioned in my teens. It started gradually going. I was beat up and


lost the eyesight in my right eye straightaway, and in my left eye it


gradually went. In some ways it's lucky, some people lose it overnight


which has more of an impact on them. Because mine was gradual, I was able


to get used to it over that length of time. We mentioned with bin


looking at disabled people in the workplace, disabled people as


consumers. -- been looking. What challenges are therefore disabled


people looking to get into work and employers wanting to employed or


maybe needing to change their attitudes about employment? The


whole idea of disability and getting people into work, across the world


there's over 1 billion, 1.2 billion people who live with some sort of


disability, a population the size of China a massive proportion of the


population. To get those people into work, it's going to be a win win for


everybody. Companies are going to get more of a diverse workforce.


People are going to come off benefits. There's going to be other


diverse experiences people can bring into the workforce, workplace, and


share their experience. Disabled people, day in and day out, live


with a problem they have to solve. They are innovative problem solvers.


The challenges, if there is a barrier and you can't get round


it... Those are the sort of people bosses should want in work. Right


the practical challenges of companies to employ people with a


disability. All it takes is a bit of a mindset.


If you've have some on an amazing at computers, amazing at IT but your


office is up three flights of steps and he is in a wheelchair. Rather


than not employ them, let him or her work at home. It's changing the way


you think about traditional perceptions of workplaces. Having


produced a series for us this way, what stories have you come across


that have really resonated with you? There have been brilliant stories,


and a lot of them haven't really come onto the screen or haven't been


on the radio or anything. We mentioned stuff on the inside track


we had earlier this week, the chief technology officer of the hearing


aid company. He was a brilliant story. He invented a sound bridge


which was installed in his head and has changed the lives of hundreds of


thousands of people. We had Louise Dyson, the only global casting


agency for disabled actors and actresses. Her big thing is she


wants advertisers to embrace disability. Once it up on the big


board and people are starting to see a day in and day out, it will have


some sort of profound change. Tell us about the trader you were


mentioning earlier with cerebral palsy? We had him on on some of the


World Service coverage, a former Wall Street trader who happens to


have cerebral palsy. An investment banker, made millions and millions


of dollars for a lot of the investment banks. He realised


companies weren't utilising the disabled pound, the purple pound or


purple dollar, so as he said he ran a lot of numbers. He said disability


shouldn't be seen as a niche market but an emerging market. If people


can leverage disability and somebody won't say, it's about the economy,


stupid! Fascinating. Unfortunately we have to wrap it up. Thank you for


joining us. We will see what says afterwards.


You can find more on our special coverage of this issue and how


businesses are dealing with it at bbc.com/disability


and on Twitter at hashtag - disabilityworks.


Let's go to Japan, where thousands of workers will be


It's part of a drive by the Government and business


groups to tackle overwork - and it's being called


The idea is companies make staff go home at 3pm on the last Friday


You know why they're doing it? Death from overworking in Japan is such a


problem that it even has its own word.


There you go. Sounds like a lot of fun.


Sounds horrid! Simon is back with us to take us through the papers. The


idea of premium Friday, do you do anything like this in your place of


work? No. I know of people who work in big companies in London,


especially in the summertime they do an early finish on a Friday when its


BST, when the clocks change. I seem to remember way back, certainly up


in Norway in the early 90s used to have some working hours, to take


advantage of the long summer days and get the maximum benefits out of


that. I think it was Friday, might have even been all week that people


finished at three o'clock, get out and make the most of it. I think


it's a lovely idea. There's a story in the Daily Mirror today, union


chiefs reveal workers are doing ?33.6 billion worth of unpaid


overtime year. Up to this point in 2017 people on average have been


working for free. It's interesting looking about story, they say one in


five of us are doing unpaid overtime. It is quite a remarkable


number. Again, it was interesting, there's a certain regional element


to it. It seems us folks in London do even more. Do you think doing


extra work, do you think that is adding to productivity or adding to


what is achieved at work or do you think if people worked left and took


the time of their supposed to take off there would be more productive?


I think the answer is... You always have to have appropriate worklife


balance. I think about what is changing and possibly should be


changing for the better, is it's a little more mixed. People should


head on a little earlier probably but equally you work in the evenings


or on a Saturday, it's about getting that balance right to fit in. I


think the idea you should simply be there and work all the hours and


percent is slightly daft. You've taken all the time up talking about


work and we can't talk about the Romanians on Bulgarian is working in


the UK, filling the hole of the Polish or are going back or going to


Germany. We can't even let you make a comment on it. Sorry! We


appreciate your time. We are going to go home early. That's it from us


today, bye-bye.


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