01/03/2017 BBC Business Live


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This is Business Live from BBC News with Rachel Horne and Sally Bundock.


President Donald Trump delivers a toned down address to congress,


with lacklustre detail about his plans for tax


Live from London, that's our top story on Wednesday, 1st March.


It was a highly anticipated speech, but Donald Trump's first address


The President gave little detail about his plans


YouTube takes on the cable TV networks, by launching its own


In markets, in Europe, the markets are open. With so many small fashion


businesses being launched using the fast-paced world of social media,


how do start-up designers stand out? How do you get celebrities to wear


your clothes? We will be asking one successful entrepreneur.


And as Barack and Michelle Obama both sign record book deals


whose memoir would you be more


On Tuesday, President Trump addressed a joint session


of Congress for the first time since taking office.


In a highly anticipated speech, he spoke of "restarting the engine


The President reiterated his intention to slash corporation tax


in the US and provide tax breaks to middle-class Americans.


At the same time, he announced he'll be asking Congress to approve


legislation which will result in $1 trillion worth


He also called for what he describes as "one of the largest increases


in national defence spending in American history."


Mr Trump pointed to the country's $800 billion trade


Though figures from the Census Bureau suggest this figure reduces


to about $500 billion when trade in services is factored in.


Here's what the President had to say about his plans to transform


Right now American companies are taxed at one of the highest rates


anywhere in the world. My economic team is developing historic tax


reform that will reduce the tax rate on our companies so they can compete


and thrive anywhere and with anyone. APPLAUSE


It will be a big, big cut. At the same time, we will provide massive


tax relief for the middle-class. We must create a level playing field


for American companies and our workers.


APPLAUSE Marianne Schneider-Petsinger is US


Geoeconomics Fellow with the US Marianne Schneider-Petsinger is US


Geoeconomics Fellow What did you think of it? For Donald


Trump it was a big change in the rhetoric. It was a much softer


approach compared to his inaugural speech. You say a change in tone,


but when it comes to businesses, when it comes to the economy, we


want the detail now, surely. It has been long enough this wait, hasn't


it? It was very short on detail again. He really kind of laid out


the themes again that he very much, you know, laid out on the campaign


trail and I would say only with regards to repealing and replacing


Obamacare, if you see more detail, but again in principles of what he


would like to see and the rest, it was really just, reiterating the


familiar notions and maybe going one or two steps beyond, but not very


much. You say he was short on detail. Let's talk about the debt


limit because that's something he didn't mention. Something that the


US Government has a debt limit set by the Treasury, they need approval


to increase the debt limit. He's talking about investing $1 trillion


in infrastructure. There would be some private investment, but public


investment, is there any concern about the debt limit? I think it's


something that will very much have to be played out within the


Republican Party. There is a fraction who is fiscally


conservative. There has to be a balance between spending on


infrastructure which is something the Democrats want to see, but to


what extent does that raise the deficit and the debt? It wasn't much


of a focus in the speech. It was mentioned in one sentence when he


criticised Obama and the administration to really balloon the


debt, but other than that, it was not a topic. There is concern about


the numbers and the fact that they don't add up. When you talk about


kugt taxes, but increasing spending, ex-etcetera, etcetera, you have got


to make it add up? The big infrastructure plan of $1 trillion,


that's the only figure we have seen so far. Tax for corporates, but the


middle-class as well, but in reality, it is more for the wealthy


and they are not really addressing what happens with Social Security


and Medicare, that's part of the budget that needs to be brought


under control, but he hasn't addressed. We will talk to you again


about this in probably not the too distant future.


Travis Kalanick - the boss of car service Uber -


has been forced to apologise, after a video emerged


of him swearing at one of the company's drivers.


Fawzi Kamel has complained that his income was falling


because of changes to Uber's fare structure.


This is the latest problem for the California-based company comes


just days after it was forced to launch an investigation


The company which manages the undersea rail link


between the UK and France says 2016 was the best year in its history.


Eurotunnel says net consolidated profit reach just over $210 million,


as and passenger numbers and freight traffic both saw strong growth.


The company says it is confident about 2017 and this follows


Britain's impending departure from the European Union.


Several high-profile websites have been knocked offline or suffered


glitches because of a failure at one of Amazon's major US data centres.


Amazon's S3 server is responsible for providing cloud services


to about 150,000 companies around the world.


The music streaming platform Soundcloud and the popular virtual


office software Slack were among the websites to be affected.


A story that's sensitive in the UK partly because of Brexit is the


outlook for the car industry and lots of talk about a special deal


etcetera, etcetera. Well, this is a story that's been breaking in the


last hour. The boss of Unite which is one of the bigger unions here in


the UK, is visiting a Ford factory in Bridgend in South Wales because


there is real concern that Ford could be following through with


significant job cuts, 1163 job cuts could be going at Ford. Well, Unite


is warning about this. They're going to the site today. It is a very


sensitive story. It is one we're keeping an eye on. More detail on


our website. The wonder from down under!


The latest economic figures from down under have beaten


analysts expectations, showing the country


returned to growth after contracting last quarter.


I thought you were talking about Aaron Heslehurst then, the wonder


from down under! Tell us how did Australia pull this


off? There was a concern that we could be talking about a recession


in Australia? Well, if you could have heard it, you could say there


was a big collective sigh of relief when the data came out today,


showing that not only did Australia's economy bound, but it


avoided a recession. A recession as you know is defined as two


consecutive quarters of economic contraction. In the fourth quarter,


Australia's GDP grew by 1.1%, stronger than expected and again,


very, very important because in the previous quarter it had contracted.


What this means is the wonder down under had a quarter century of


uninterrupted economic expansion. How did they do it this time? Two


things really helped the economy bounce back. One a surge in exports


led by rising global commodity prices and two, higher household


spending. Australia relies very much on global commod commit prices and


exports. Its biggest customer is China and despite the fact that we


have seen a rebound in China, the rebound of the prices has seen a


strong turn around for Australia and next year's GDP is forecast at 3%.


Back to you now. Thank you for that. Let's look at how the markets have


been getting on. Yesterday the words for the market were, "Cautious."


Today's word is, "Muted." The Nikkei is up, but that's because of growing


expectation of a US interest rate hike this month strengthening the


dollar. European markets, they are in the green, up over 1% in Germany


and in France. Not a lot happening in the UK today, but still up just


over 0.5%. Let's go over to Wall Street.


Remember the American drug company that sparked outrage after it raised


the prices of its allergy allergy shot, the epipen, well, they will be


reporting earnings and investors will be focussing on how the company


will fair against mounting competition. Also reporting earnings


on Wednesday is Best Buy. It is an electronics retailer. It had to cut


costs and the future is not looking too bright. There is not as many


exciting products hitting the markets and with no cost-cutting


measures in place, it maybe a tough year for Best Buy, the second


biggest home improvement company will be reporting earns on


Wednesday. Lows may ben vit from the rising value of homes in the US


which may reverse spending on home remodelling. I wonder when she gets


sleep. She has been doing a round-the-clock job thanks to


President Trump. Jeremy Cooke joins us. Not much


detail came through, the fact that he hasn't addressed too much the


economic concerns, the market is closely looking at. It was more of a


socio economic speech. Chatter about immigration that tended to take the


main thrust of the speech and we've heard this language before. It was a


campaign speech. It was indistinguishable from what he said


on the stump throughout 2016. Given the lack of detail how do you think


the American markets will react today? Do you think we will see them


coming off the increases? There is an element, they knew they wouldn't


get too much yesterday or overnight because we had to wait on the budget


from the White House and in the mid-part of March and he said we had


to wait, he said a couple of days ago, details around the tax plan


which boosted stocks since he won the election, we have to wait until


repeal and repair of Obamacare and that's going to take a couple of


months. Something you noticed which is interesting, that's move the bond


markets in France is chatter on social media about one of the


candidates running to become the next president in France. He may


possibly pull out of the race? Yes. It is the likelihood apparently that


he is going to pull out of the French Presidential campaign. It is


just a rumour. He cancelled a number of speaking engagements. One which


is a huge speech. Cancelling that seems to suggest... Plus a press


conference? A-conference is scheduled for later on this morning.


He's third in the preliminary polling which wouldn't take him


through to the second round. So is he already out? We will be grilling


Jeremy whether he would buy Barack Obama or my shell Obama's books.


Still to come, we speak to one young entrepreneur about how to stand out


And how she's managed to get her T-shirts


You're with Business Live from BBC News.


There have been fresh calls this morning for Sir Philip Green


to lose his knighthood over the collapse of BHS.


That's despite the retail tycoon agreeing to pay up to ?363 million


to reduce the failed retailers pension deficit.


Theo Leggett is in our Business Newsroom.


Bring us up to speed. What's been happening? Fresh calls for him to


lose his knighthood despite the donation? Well, two of the MPs who


conduct Parliamentary inquiries into the collapse of BHS and who have


been responsible for putting pressure on Philip Green to come up


with money to fill in the deficit in the BHS pension fund, they have been


suggesting that stains on Sir Philip's character have not gone


away. They have stopped short of saying he should still lose his


knighthood, Ian Wright, he is chairman of the business Select


Committee, he told the Daily Mirror newspaper that allowing Sir Philip


to keep his knighthood would be like rewarding an arsonist who put his


own fire out. So pretty strong stuff there. Frank Field he has continued


to be critical. He said this is a good step, but has implied at least


it doesn't go far enough. Although Sir Philip Green has put his hand in


his pocket and come out with ?363 million to help fill the hole in the


BHS pension fund, I don't think the criticisms are going to go away.


Thank you, Theo. Tell us, if you had to read a book


of Barack Obama or Michelle Obama, which would you go for? Would you go


verbose? I would go through neither, I am not really into political


controversies, I prefer a good thriller. The West Wing. You heard


it from Theo, we are creating a picture of the O'Hear on BBC world


news. -- of Theo. House prices is something we like to talk about in


the UK. They are up again according to nationwide, up 0.6% in February.


We keep hearing that the housing market may be pulled down by Brexit.


It is still going up again, although there is expectation it will slow


down this year. More information on that on our tablet.


Our top story, President Trump delivered his highly anticipated


first speech to both houses of Congress.


The first one since he became president but he has disappointed to


a degree with the lack of detail. And a cockroach probably isn't


at the top of the list. But our next guest somehow seems


to be able to make it work. She's Marissa Montgomery, founder


and Chief Executive of Rotten Roach. The company makes ultra hip T


shirts and sweat shirts - much beloved of celebrities


like Kate Moss and Salma Hayek. It sells through a few high end


retailers, but almost 80% Marissa established Rotten Roach


in 2012 and chose the name after first-hand experience


with New York's abundant She was featured on the Forbes 30


to Watch Under 30 list. Thank you becoming into the studio.


Tell us about your product, your brand. The idea, we have further


name comes from your idea of living in New York with lots of


cockroaches, Rotten Roach, but why did you think there is a gap in the


market for T-shirts? I just know from experience of myself and all my


girlfriends, T-shirts are something you can buy, you can wear in the day


and the evening, I wanted to create this wearable art. I worked with an


artist to create one-off wearable T-shirts, so each graphic is


exclusively designed for Rotten Roach, and they are just funny,


tongue-in-cheek. You wearing one of them now, which says Love bug. It is


pretty high end, they are not cheap by any means. Talk us through way


you wanted to place yourself in the market. Believe it or not, it is


affordable luxury, it sits amongst its peers on the lower end, but we


do sit in high-end boutiques, Mosley as we were discussing before for


positioning, and we seem to sell really well. We sell all across the


world, everywhere from Saint Barts to Greece to Miami, LA. How did you


make that happen? It is partly about connections and who you know, it


does help a lot, doesn't it? It definitely does, but if someone


doesn't like the product ultimately they will not buy it. You spoke


about placement, getting yourself into some high end boutiques, but


most of your cells are online. And you are manufacturing in Turkey and


California, and you have plans to start doing embroidery in the UK.


You are still very involved at the minute, you pack up most of the


items and sending them out yourself. I am packing up all of your orders


for the moment, when you go on the Rotten Roach and order something, I


am packing them up. In Turkey, and in California downtown, I work for a


closely with the manufacturers and I am hoping to make in England. Ring


it closer to home. This is one of the jumpers. The boss. Not that I am


the boss by any means, I wish I was! This is one of the jumpers that is


out there today. They just came in today so you are the first person to


see it. These things just fly off the shelves, as it were. And yet you


have the likes of Kate Moss and Selma Hayek wearing them, had a


Jamaican that happen? To be honest, both of them bought the T-shirts, we


did not give them. It is amazing. You can search, because I know which


store buys it from, each store buys a different thing, and you are able


to trace it. That is a gift for you, you can't beat that marketing. That


helps sales incredibly, and social media is so important, so once


repairs that picture or a celebrity does, we see a direct correlation


with sales on the website, so we can trace it, click Baxter Regli from


Instagram, Twitter, pinch rest. You mention those social media sites,


what percentage of your day do you spend on social media promoting your


brand? Too much, I think about it is so important. We have a blog section


on the website where we do interviews with interesting,


inspiring women. We are always looking to work with photographers


who have big social media influences, so it is a whole new


different type of celebrity now you have wearing your product, not just


Selma Hayek, Kate Moss come it is also these girls who would not


necessarily be known on the street but they have 2 million Instagram


followers. That is very interesting. You also have one with the boss on.


I am more of a bus than you, am I? No, I'm not. Who is the boss? Sally.


It is that wander from Down Under again.


Pokemon Go took the world by storm last year.


Nintendo's smash-hit saw millions of people take to the streets


in search of virtual monsters - our technology correspondent,


Rory Cellan Jones, has been speaking to the man behind the madness,


at the Mobile World Congress in Barcelona.


Last summer, an extraordinary craze swept around the world, which saw a


lot of people out with their mobile phones, hunting for Pokemon. It is


fair to say that the enthusiasm for Pokemon Go has faded a little since


then, but there are still Pokemon to be found out and about here at the


Barcelona Mobile world Congress, and I have also found the inventor of


the game, a man who has changed our views on augmented reality, John


Hankey from the antic. Did you have any concept of how big the game was


going to be when it launched? I wish I could have predicted that.


Obviously not. It was a huge surprise to us. We spent a good


portion of ourselves looking at Adidas pause and servers that were


going haywire with all of the operators. In San Francisco there


was a 9000 people spontaneous Pokemon event. It was very surreal,


actually does that hasn't it faded quite a lot? Something like that


will fade, it exploded on social media, it has a life of its own Nite


has become a very successful product. Not at that level of


frenzy, but it is one of the most used mobile apps out there. It


certainly is. Love it or hate it, Pokemon Go, and that is the man who


made it. I didn't let my children know about it. Jeremy is back, as


you can see, and we're talking about this story all over the papers


today, the New York Times it is everywhere. Obamas make book deal


with thing when Random House and we don't know specifically the number


but -- with Penguin Random House. A huge amount of money. Now suppose


really. Not really, Bill Clinton got about 15 million, George Bush got 10


million, so this can blows it out of the water. It will be interested to


see which one is more popular. I would go for the Michelle Obama won,


I would like to see her probably layout how she would... Her


perspective. And maybe running for office in four five, eight years'


time. We had quite a feud tweets on this. Shahada said I would prefer


Michelle Obama. Only wanted to know about Barack Obama. Another text


says both books and Wayne says neither, so that covers the whole


gamut. Our unscientific poll of the newsroom, most said Michelle didn't


they? Interesting. Let's talk about the story about YouTube. They have


the constant conversation within media about where television is


going, and with Netflix. It got all of the traditional TV providers


really worried about the outlook. But now it looks like this new idea


from YouTube that actually we are all back in fashion. It is a new TV


subscription service from YouTube. They have YouTube red which delivers


ad free content in the US, but this one will bring together NBC, ESPN,


the broadcaster you would typically get in the United States through


YouTube. Say you're not just streaming stuff any more? No. Here


in the UK, you have the rest real TV, you may have Sky, Netflix,


Amazon prime as well. There is a huge range of services you can use.


It all depends on cost. There is no details about how much this will


cost quite yet. Maybe $30. Looking like $35 for a family subscription


so you can access it on up to 60 vices, you don't need a satellite


dish or a TV. But what about your broadband provision and the speed?


Sky have talked about delivering their service through the internet


in the past six months or so. But high-quality TV through your


internet connection and someone else is on Twitter, then it is gone. You


are really into it and it starts doing that. That was an issue, they


had a similar online search option called DirecTV in the state and it


is about $70 a month and viewers missed the end of the Super Bowl.


Disappointing. No one is going to want that. Thank you, Jeremy,


good to see you. Thank you for your contributions today.


There will be more business news throughout the day


on the BBC Live web page and on World Business Report.


Sally will be back tomorrow. See you soon, goodbye.


Good morning. Lots of whether to tell you about today. It was an icy


start for the North analyst of a wintry showers here, while in the


south the milder air Trent coming off the


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