24/03/2017

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:00:17. > :00:21.Stock markets have risen since President Trump's election

:00:22. > :00:24.on the promise of big spending to boost the economy,

:00:25. > :00:28.but will his struggles with Congress get in the way?

:00:29. > :00:34.Big falls for Samsung's shares after the South Korean giant says it

:00:35. > :00:37.won't make the changes some investors want after its

:00:38. > :00:45.And markets worldwide are once again focused on Washington and assessing

:00:46. > :00:47.President Trump's ability to push through reform.

:00:48. > :00:50.This is how the day has started in Europe -

:00:51. > :00:54.we'll talk you through the winners and the losers.

:00:55. > :00:57.Also in the programme - robots are increasingly

:00:58. > :01:01.taking our jobs, but will it be good for the economy?

:01:02. > :01:04.Our economics editor Kamal Ahmed will be here to discuss that

:01:05. > :01:07.Today we want to know, would you pay to tweet?

:01:08. > :01:12.Twitter is considering a paid membership option for businesses

:01:13. > :01:16.and power users - what do you think?

:01:17. > :01:31.Get in touch with us, we do love to hear from you.

:01:32. > :01:40.We start in the US, where President Trump is battling

:01:41. > :01:42.to deliver on one of his biggest election promises,

:01:43. > :01:44.and to hang on to his credibility with investors.

:01:45. > :01:46.Late on Thursday, Republicans were forced to delay a vote

:01:47. > :01:49.in the House of Representatives on scrapping and replacing

:01:50. > :01:53.the healthcare reforms known as Obamacare becuase they struggled

:01:54. > :02:11.to drum up enough support across their own party.

:02:12. > :02:13.Mr Trump is now trying to force a vote this afternoon,

:02:14. > :02:17.On Wall Street it's being seen as a key test

:02:18. > :02:21.The concern is if he can't deliver on scrapping Obamacare,

:02:22. > :02:24.his other plans for massive tax cuts and spending hikes may not get

:02:25. > :02:28.Let's just show you the scale of the expectation that has built up.

:02:29. > :02:30.$2.2 trillion has been added to the value of US shares

:02:31. > :02:38.since Trump was elected, in a rally of historic proportions.

:02:39. > :02:41.If you take a look at the Dow Jones industrial average,

:02:42. > :02:46.it has soared since the election in November.

:02:47. > :02:49.As of the start of this week, it had gone up 14%

:02:50. > :02:55.The financial sector has been the biggest winner -

:02:56. > :03:01.that's because the President has promised to review

:03:02. > :03:04.the strict regulations brought in after the financial crisis,

:03:05. > :03:13.The Dow's index of bank shares has soared 17%.

:03:14. > :03:18.Mike Jakeman is a Global analyst at The Economist Intelligence Unit.

:03:19. > :03:26.Thank you for joining us this morning. So much of this market

:03:27. > :03:30.growth has been delivered on a sense of expectation, hope. Is it starting

:03:31. > :03:33.to look like President Donald Trump cannot quite strike a deal in

:03:34. > :03:38.Congress the way the businessman was able to do in the commercial sector?

:03:39. > :03:41.Yes, you can understand the reasons the business community were

:03:42. > :03:44.optimistic about Donald Trump because we had a unification of the

:03:45. > :03:48.President with a Republican president and Republican majorities

:03:49. > :03:52.in both houses, it looked as if it could be a relatively smooth passage

:03:53. > :03:56.by legislation but that overlooks the fact that could -- -- club is

:03:57. > :04:00.not a traditional mainstream Republican and the party itself is

:04:01. > :04:05.quite ideological split. We have seen this with the help depot, there

:04:06. > :04:08.are moderate politicians whose constituents have been using

:04:09. > :04:12.Obamacare the years, they are keen to keep as much as what they have

:04:13. > :04:15.been using on the table as possible, then there are the right wing who

:04:16. > :04:20.are obviously ideological opposed to Obamacare and want the whole thing

:04:21. > :04:25.God. Trump is in the middle of this trying to get it through as tricky

:04:26. > :04:29.as he can, losing votes on one side, gaining on the other. Repealing

:04:30. > :04:33.Obamacare was central to his campaign for the presidency. If he

:04:34. > :04:37.cannot deliver on this, that will spook the market in terms of

:04:38. > :04:40.delivering on tax cuts, promised infrastructure spending. If you

:04:41. > :04:45.cannot deliver, what will that mean? I would not be too worried about

:04:46. > :04:47.that yet. For a start, we knew there would be problems with getting

:04:48. > :04:50.things through Congress because of the way the party is split, and

:04:51. > :05:13.health care is a divisive issue. We might

:05:14. > :05:16.find there is a greater sense of harmony in the party on, for

:05:17. > :05:18.example, tax cuts, so we will see an issue by issue struggle, some things

:05:19. > :05:20.will go through Congress quickly because there is unification between

:05:21. > :05:22.the administration and the party. Other things, issues that are really

:05:23. > :05:25.central to American life, will prove more divisive. We were talking in

:05:26. > :05:28.the Green room, you can pack a new president to a new car, as soon as

:05:29. > :05:30.you drive off the forecourt the value depreciate. This is his

:05:31. > :05:33.opportunity to act, would you expect him to have delivered more by now?

:05:34. > :05:36.He has been sold a hospital pass by Paul Ryan on this, health care is

:05:37. > :05:39.the first issue they have tackled and it is a tough start for a new

:05:40. > :05:43.president, an issue that has dogged American presidents back to the

:05:44. > :05:46.1940s, so too are expected to be sold and legislated in a couple of

:05:47. > :05:49.months is quite a tough line. I think we will see a better pace of

:05:50. > :05:53.progress in the coming months when they tackle issues that are not

:05:54. > :05:57.quite as difficult. Briefly, do you think it will pass today? Not

:05:58. > :05:59.necessarily today but in the next few weeks they will get something

:06:00. > :06:03.through. Thank you for your time. That is the

:06:04. > :06:04.focus for the markets, we will talk more about that later. Let's look at

:06:05. > :06:07.some of the stories. Twitter is considering adding

:06:08. > :06:09.a paid membership option The micro-blogging service,

:06:10. > :06:12.which has struggled to grow its user base in recent years,

:06:13. > :06:15.is carrying out surveys to "assess But it has not made any

:06:16. > :06:18.indication it is considering Twitter's active user

:06:19. > :06:24.base has plateaued, and advertising revenues,

:06:25. > :06:32.currently the firms only meaningful Send us your thoughts on this via

:06:33. > :06:35.Twitter, if you like, and we will share them with you later.

:06:36. > :06:39.The Chinese Premier Li Keqiang has said allies will not have to choose

:06:40. > :06:41.between favoring China and the United States,

:06:42. > :06:46.despite tensions between the two super-powers.

:06:47. > :06:50.He was speaking during a visit to Australia where he oversaw the

:06:51. > :06:54.signing of bilateral trade agreements. Australia is China's

:06:55. > :07:01.biggest export market. The European lender Credit Suisse

:07:02. > :07:03.raised bonuses by 6% in 2016, according to the company's

:07:04. > :07:10.latest annual report. The Swiss bank recorded a loss

:07:11. > :07:13.of $2.4 billion last year, but the report said that the payouts

:07:14. > :07:15.were necessary in The increase defies a recent

:07:16. > :07:25.trend towards smaller We can see that FTSE here holding

:07:26. > :07:28.steady, it has been open for almost 40 minutes, mentioning as we had

:07:29. > :07:33.lined with, analysts keeping an eye on the vote by US lawmakers on

:07:34. > :07:37.health care, a key test of Donald Trump's political agenda, so much

:07:38. > :07:38.expectation and hope built up in the markets. If he cannot get this

:07:39. > :07:40.through, what will that mean? It's been another tense day

:07:41. > :07:46.for electronics giant Samsung. It has been facing investors

:07:47. > :07:50.at its annual general meeting. The company's leader,

:07:51. > :07:58.grandson of the founder and vice-chairman Jay

:07:59. > :08:00.Y Lee, wasn't there. He's facing trial on charges

:08:01. > :08:02.of bribery and embezzlement - which he denies - in a corruption

:08:03. > :08:17.scandal that has seen president It would have been interesting to be

:08:18. > :08:22.a fly on the wall at that AGM? Yes, there was a big restructure on

:08:23. > :08:29.the table and for the moment they seem to have put it aside. Samsung

:08:30. > :08:32.group shares were down, the flagship Samsung Electronics lost the red .7%

:08:33. > :08:36.while other divisions lost considerably more than that. The

:08:37. > :08:40.restructure is not off the table entirely but seems it will not be a

:08:41. > :08:45.simple and straightforward process. It has been a difficult year for on

:08:46. > :08:49.a number of levels, there has of course been that scandal and on top

:08:50. > :08:55.of lets not forget the Samsung Galaxy note seven battery issue

:08:56. > :08:59.which of course was connected to recall because in some cases those

:09:00. > :09:03.batteries overheated and caught fire but you have to remember the

:09:04. > :09:07.sell-off is coming of record high partly due to the semiconductor

:09:08. > :09:10.business which has gone along quite nicely, seemingly unaffected by

:09:11. > :09:13.everything else that has happened Samsung this year.

:09:14. > :09:18.For now, Tim, thank you very much indeed.

:09:19. > :09:22.Let's look at the markets the world. It has been an interesting session,

:09:23. > :09:26.in Japan we saw gains because the yen weakened a liberal versus the

:09:27. > :09:30.dollar but it was not a huge amount, enough to give Japan a bit of a

:09:31. > :09:34.boost, it has had a torrid week this week mainly because of the weakening

:09:35. > :09:38.dollar and of course the markets are not sure where to head this week

:09:39. > :09:42.with concern that we mentioned about Donald Trump's ability to pass

:09:43. > :09:46.through law. Let's look at Europe trading, they

:09:47. > :09:48.are all a little bit flat, slight losses. We will discuss those in

:09:49. > :09:54.more detail in a moment. Let's look ahead to what is

:09:55. > :09:57.happening on Wall Street. The Mir Hussein has more.

:09:58. > :10:01.Financial markets here in the US are set for another day of looking

:10:02. > :10:04.The failure of the Republican Congress to bring its Healthcare

:10:05. > :10:10.Bill to a vote on Thursday didn't do wonders for the market's

:10:11. > :10:12.belief that the Trump administration can follow

:10:13. > :10:16.More delays, or a failure of the legislation, might give

:10:17. > :10:26.Still, investors will also have some key economic data to look at,

:10:27. > :10:28.and there's possibly a greater certainty of good news there.

:10:29. > :10:30.Orders for durable goods, those are longer-lasting

:10:31. > :10:32.manufactured items, are expected to have seen another

:10:33. > :10:37.rise in February, this time of about 1.2%.

:10:38. > :10:40.A closely-watched survey of sentiment among managers

:10:41. > :10:48.in the manufacturing sector is also expected to post a decent increase.

:10:49. > :10:50.Joining us is Lucy MacDonald, CIO, Global Equities

:10:51. > :11:00.Thank you for coming in this morning. A lot going on for the

:11:01. > :11:04.market, the big focus is the vote happening in the States today but we

:11:05. > :11:10.have had movement with oil as well, something playing on the markets.

:11:11. > :11:14.With oil, it has been one of the big drivers of the recovery in the

:11:15. > :11:18.market, so we have had the Trump rally but also a recovery in the oil

:11:19. > :11:25.price as well, and that has really been because of cuts agreed with

:11:26. > :11:33.Opec. Although those cuts have taken place, it does seem that the

:11:34. > :11:38.expectation that the oil price will go up has meant that the credit

:11:39. > :11:41.going into the shale industry in the US has kept its pumping and

:11:42. > :11:47.therefore you have got higher infant 's and so that is now pushing down

:11:48. > :11:52.on the oil price so it is going to be an interesting time for Opec to

:11:53. > :11:56.decide whether they need to do more cuts all give more confidence that

:11:57. > :12:00.the cuts will be of a longer duration. There is an Opec meeting

:12:01. > :12:03.this weekend so the price of oil is going to be sensitive in the run-up

:12:04. > :12:07.to that and probably early next week. Give us your reflection on

:12:08. > :12:08.this week for the markets, it has been a funny one because last week

:12:09. > :12:28.it was about central bank action with the Fed, meeting with many

:12:29. > :12:31.other central banks around the world. This week has been unusual

:12:32. > :12:34.with today, the big focus this afternoon, is in the United States?

:12:35. > :12:36.It is the first week with a 1% fall in the market on Tuesday, the first

:12:37. > :12:39.time for 100 days, so markets have been incredibly complacent, the fear

:12:40. > :12:45.index is extremely low. It is a very complicated index in its

:12:46. > :12:50.construction but what it is showing you is the expectations about

:12:51. > :12:55.volatility going forward. That has gone up a bit? No, that has gone

:12:56. > :12:59.low, so there is a lot of complacency in the market, so over

:13:00. > :13:04.the last six months we have seen spikes in this index with Brexit and

:13:05. > :13:08.then with the election, but it has come down to very low levels now, so

:13:09. > :13:12.you have a very strong market with low volatility and that suggests

:13:13. > :13:18.complacency, so this week having the first 1% fall in the market suggests

:13:19. > :13:22.it is just the first crack in that complacency, and that is why this

:13:23. > :13:31.vote is so important, because of the importance of the whole Trump agenda

:13:32. > :13:36.of progress, pro-inflation, to keep the rally going. If there is

:13:37. > :13:39.expectation that the tax reform in particular won't get through in

:13:40. > :13:43.time, that will mean this whole trade and the basis of it is

:13:44. > :13:45.question. OK, you will be back to do the papers at the end of the

:13:46. > :13:49.programme. Thank you for now. Lots more to come

:13:50. > :13:54.in the programme, including, are more robots good for the economy?

:13:55. > :13:59.Hour of every human economics editor will be here to explain all. -- our

:14:00. > :14:00.very human editor. You're with Business

:14:01. > :14:07.Live from BBC News. In the UK, providers may have

:14:08. > :14:10.to start compensating customers if landline

:14:11. > :14:13.and broadband repairs are too slow. Ofcom proposes customers getting

:14:14. > :14:15.refunds if broadband isn't set up on the day it was promised,

:14:16. > :14:26.or if an engineer doesn't turn What is the reaction to this?

:14:27. > :14:30.This is a consultation which will carry on until June and we will not

:14:31. > :14:35.get concrete proposals from Ofcom until the end of the year, but it is

:14:36. > :14:39.a significant move. Ofcom say around 5.6 million people every year lose

:14:40. > :14:44.access to their landline or broadband, and that this isn't

:14:45. > :14:47.rectified quickly enough. Apparently every year about 250,000

:14:48. > :14:51.appointments with engineers are missed, the engineer simply doesn't

:14:52. > :15:04.turn up, and Ofcom says that is not good enough. Also when people want

:15:05. > :15:06.landline or broadband installed, there are often delayed there, so it

:15:07. > :15:08.stays there would be an automatic entitlement to compensation, whether

:15:09. > :15:11.that be cash payment or reduction in Bill, and this will result in

:15:12. > :15:14.payment of about ?185 million per year. Incidentally it is only

:15:15. > :15:18.landline and broadband customers, not mobile customers because

:15:19. > :15:22.apparently mobile customers do get compensated quite well in most

:15:23. > :15:26.cases, whereas when it comes to landlines it is only in about 15% of

:15:27. > :15:30.cases and Ofcom says compensation is ad hoc and simply often not

:15:31. > :15:33.adequate. Has there been any reaction from the

:15:34. > :15:37.industry? I have not personally seen any but I

:15:38. > :15:42.suspect there will be because the industry itself has come up with

:15:43. > :15:45.proposals to rectify this. BT, virgin media, they have come

:15:46. > :15:48.together and put out proposals but Ofcom says they don't go far enough

:15:49. > :15:49.so it is back to the drawing board for them.

:15:50. > :16:03.OK, thank you. Lots of other stories online, as

:16:04. > :16:08.ever we can't fit them all. Portsmouth and Exeter's new boss to

:16:09. > :16:12.hold takeover talks. This is chief executive Michael Eisner. They are

:16:13. > :16:17.holding exclusive takeover talks according to BBC Business. Trying to

:16:18. > :16:25.think of appropriate Disney movie titles! Bank branches inevitably in

:16:26. > :16:30.the firing line as banks go more digital. The high-street bank or

:16:31. > :16:41.branch as it work could become a thing of the past. Read about it

:16:42. > :16:46.online. Our top story, as President Trump struggles to get health care

:16:47. > :16:49.reforms through US Congress, concerns grow amongst investors

:16:50. > :16:57.about he will be able to deliver the economic boost he promised. Now,

:16:58. > :17:01.let's have a quick look at the markets. They are pretty flat, to be

:17:02. > :17:06.honest. I would imagine as we get news out of the United States about

:17:07. > :17:10.the vote in Congress on Obamacare or the affordable health care act as

:17:11. > :17:13.it's officially known, will see some movement. Having said that these

:17:14. > :17:14.markets in Europe may be closed by then but we will keep you

:17:15. > :17:16.up-to-date. The UK's PM Theresa May

:17:17. > :17:20.is to trigger Article 50 next Wednesday, officially notifying

:17:21. > :17:22.the European Union And jobs will change rather

:17:23. > :17:28.than disappear over the next decade as robots are increasingly used

:17:29. > :17:36.in the world of work. A couple of interesting reports are

:17:37. > :17:41.out on that this week as well. Let's discuss all of this with our

:17:42. > :17:51.economics editor Kamal Ahmed. Good morning. Let's talk some big

:17:52. > :17:56.figures. I think it is a moment to take stock to an extent. This

:17:57. > :18:00.weekend in Italy sees the marking of the 60th anniversary of the birth of

:18:01. > :18:07.what was the European economic commission. And to say at this

:18:08. > :18:12.moment, it has achieved a huge amount. We sometimes forget this was

:18:13. > :18:19.to stop War, which was successful. It integrated after the fall of the

:18:20. > :18:21.Berlin Wall, after the fall of communism across Eastern Europe. It

:18:22. > :18:26.launched a single currency relatively successfully. Any people

:18:27. > :18:31.believe. We've got to a stage where there is this new fracture. Britain

:18:32. > :18:42.is about to trigger Article 50 to leave the European Union, and both

:18:43. > :18:48.the finance minister of Germany and Jean-Claude Juncker have spoken

:18:49. > :18:54.about what the rest of Europe will look like. John Claude Inker spoke

:18:55. > :18:57.to our editor and had this to say -- John Claude Yunker.

:18:58. > :19:00.We will be sad, as I was sad when the referendum

:19:01. > :19:06.I'm everything but in a hostile mood, when it comes to Britain.

:19:07. > :19:17.We'll negotiate in a frank way, in a fair way, and are not naive.

:19:18. > :19:24.There he is saying it's not about punishment, slight softening of the

:19:25. > :19:30.language of the negotiations start. Also making clear we aren't naive.

:19:31. > :19:34.The European Union 27 that are left in the European Union want to ensure

:19:35. > :19:39.that whatever the dealers, and it should be a reasonable one they

:19:40. > :19:42.think, it can't be better than being in the European Union. I think

:19:43. > :19:50.that's going to be where the tension is. Much does Britain have to pay in

:19:51. > :19:54.to be part of any European Union structures, to retain access to the

:19:55. > :19:58.single market. That will be where the real battles are. Something else

:19:59. > :20:03.you been writing about this week is robots. The possibility of

:20:04. > :20:09.artificial intelligence meaning that many jobs as we know them now will

:20:10. > :20:13.be not done by humans. Two interesting reports, one from

:20:14. > :20:18.Germany and one from the UK on our future work. If you think about the

:20:19. > :20:22.big trends coming in Western developed economies particularly but

:20:23. > :20:26.also other emerging economies, it is the use of artificial intelligence

:20:27. > :20:31.and robots. The German study makes an interesting point. The two groups

:20:32. > :20:35.of workers who are somewhat protected from the AI revolution are

:20:36. > :20:41.high skilled, human facing tight jobs like health care for example,

:20:42. > :20:44.and lower skilled what it describes as dextrous jobs. Where human

:20:45. > :20:48.ability to work in teams is very important. The ones at risk are what

:20:49. > :20:52.you might describe as the middle management, data processing, middle

:20:53. > :21:00.of type jobs. Those are the jobs that will disappear. The UK study

:21:01. > :21:03.says up to 30% of all jobs can be done by robots or artificial

:21:04. > :21:07.intelligence within the next decade. But it does say that will increase

:21:08. > :21:11.productivity and increased economic wealth. And also there will be a

:21:12. > :21:15.whole new set of jobs around technology and the type of work you

:21:16. > :21:19.do, which means these jobs aren't simply lost from the system, but

:21:20. > :21:21.just like we found with the industrial Revolution when everyone

:21:22. > :21:27.said everyone is going to stop farming, actually we replace those

:21:28. > :21:31.jobs with high manufacturing level jobs in cities. That's what they

:21:32. > :21:36.always promised, there's a whole new range of jobs coming. It does tend

:21:37. > :21:40.to happen. Economies are actually very good at creating work. If we

:21:41. > :21:45.look at the levels of work in the UK at the moment, it's incredibly high.

:21:46. > :21:49.Employment levels in the UK are almost at a record. Economies are

:21:50. > :21:57.very good at replacing older jobs with new types of jobs. Thank you.

:21:58. > :22:01.Stay in your human form, please! I could be a robot, who knows! I can

:22:02. > :22:04.confirm he is not! LAUGHTER Now, many of you who are watching

:22:05. > :22:08.in the UK may be aware that It's a chance to raise money

:22:09. > :22:11.for charities that help people here in the UK and across Africa

:22:12. > :22:14.by doing something funny. Since its launch in 1988,

:22:15. > :22:16.it's raised hundreds So to raise more I persuaded one

:22:17. > :22:20.of our regular guests, economist Jeremy Cook,

:22:21. > :22:24.to part with his beard. There you go, that's

:22:25. > :22:37.the halfway mark. And thank you everybody

:22:38. > :23:12.for donating to Red Nose Day. It took years of him! It did. He's

:23:13. > :23:19.had that beard for eight years. So far online he's raised, through that

:23:20. > :23:24.very brave act, ?1642. I'm going to tweet the sponsorship link if you

:23:25. > :23:29.want to boost it. Lucy has joined us to discuss some of the paper

:23:30. > :23:36.stories. We mentioned Twitter may be considering paired membership. --

:23:37. > :23:39.paid membership. One viewer says more pay walls coming to the web,

:23:40. > :23:44.and other way the companies to make dollars. Another viewer says, I

:23:45. > :23:52.would take down my account if this happened. Lucy, are you a fan of

:23:53. > :23:57.twitter? I read it but I don't tweet. There are people and

:23:58. > :24:01.organisations that it's worth keeping track of, isn't it? Some of

:24:02. > :24:06.them are very prolific in terms of making venues known. Yes. As far as

:24:07. > :24:11.the pay model is concerned, I think it's quite difficult to go from free

:24:12. > :24:16.to paid. You could try a premium model like Spotify has where you

:24:17. > :24:21.start free and then you start paying a little, and then you have a bit

:24:22. > :24:25.more flexibility about it. If you just start trying to charge people

:24:26. > :24:28.things, people will switch off and try something else. Also in the news

:24:29. > :24:35.is the French elections. The latest bit of information you can see that

:24:36. > :24:38.the defence Minister is defecting from the left to join the

:24:39. > :24:43.independent candidate Emmanuel Macron. It would seem Emmanuel

:24:44. > :24:48.Macron is getting more momentum by the day. This is a big story for

:24:49. > :24:54.markets right across Europe, this risk. It is, and there is a huge

:24:55. > :24:59.focus on how populism is doing across Europe and in France in

:25:00. > :25:04.particular. We are just coming up to April and May. It is looking closer

:25:05. > :25:09.now. A neck and neck between Marine Le Pen and Emmanuel Macron,

:25:10. > :25:15.certainly in the first round. Then in the second we don't know what

:25:16. > :25:20.will happen. But it does look much closer. Therefore, less concern as

:25:21. > :25:25.far as markets are concerned. You can see that partly in the way the

:25:26. > :25:30.European markets are beginning to perform better, as that populism

:25:31. > :25:32.fear is receding. Lucy McDonald, thank you for joining us.

:25:33. > :25:40.I think our guests will be nervous now I've been shaving off beards!

:25:41. > :25:46.See goodbye.