04/04/2017

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:00:00. > :00:00.This is Business Live from BBC News, with Susannah Streeter

:00:00. > :00:12.Gateway to India - Britain's Chancellor looks

:00:13. > :00:15.to the sub-continent for new trade ties in a post-Brexit world.

:00:16. > :00:31.Live from London, that's our top story on Tuesday, 4 April.

:00:32. > :00:35.As the UK leaves the European Union, can it get a boost helping India's

:00:36. > :00:40.development as one of the world's fastest growing economies?

:00:41. > :00:45.President Trump lands a blow to internet privacy,

:00:46. > :00:47.paving the way for internet providers to sell their

:00:48. > :00:58.We look of the financial markets in Europe.

:00:59. > :01:01.And we'll be getting the inside track on good manners.

:01:02. > :01:05.In a digital world how much can Debrett's help?

:01:06. > :01:08.We'll speak to the boss of revered etiqutte guide about how to behave

:01:09. > :01:14.And today, as the worlds most famous investor, Warren Buffett,

:01:15. > :01:17.is being used to sell cherry cola in China, we want to know,

:01:18. > :01:22.which celebrity endorsements have convinced you to make a purchase.

:01:23. > :01:41.We start in India, where the UK Finance Minister is leading

:01:42. > :01:46.It's a two-day visit, where Philip Hammond will stress

:01:47. > :01:51.that Britain is open for business and looking for new trade deals,

:01:52. > :02:00.as the UK negotiates its way out of the European Union.

:02:01. > :02:03.Both countries have had a relationship spanning many years.

:02:04. > :02:04.And let's talk you through the relationship.

:02:05. > :02:08.In 2014, the value of all the goods and services sold between India

:02:09. > :02:10.and the United Kingdom was about $24 billion.

:02:11. > :02:13.And it works in India's favour - they export a lot more goods

:02:14. > :02:23.Their top exports are clothing, footwear and medical items.

:02:24. > :02:27.What are the countries hoping to gain in the future?

:02:28. > :02:29.India is looking to raise more than $1 trillion for infrastructure

:02:30. > :02:32.over the next decade, and the UK hopes it can

:02:33. > :02:34.benefit from that, given its position as the world's top

:02:35. > :02:39.In return, India will be looking for greater freedom of movement

:02:40. > :02:44.for its citizens who want to work and study in the UK.

:02:45. > :03:06.Nice to see you again. Philip Hammond and Mark Carney, they are

:03:07. > :03:11.trying to lay foundations for any future trade deals. But many argue

:03:12. > :03:17.that some would see a future trade relationship as fairly slim for

:03:18. > :03:23.various reasons? Absolutely. There are many sticking points between the

:03:24. > :03:27.countries. Many are looking at the two countries as natural partners

:03:28. > :03:32.given the historic relationship, as well as common ground in terms of

:03:33. > :03:38.business. English is a common language. A lot of Indian companies

:03:39. > :03:45.naturally go to the UK as a senator for the rest of Europe to read. That

:03:46. > :03:50.is likely to change. -- centre. The Visa is a big issue, especially for

:03:51. > :03:54.Indian students. One analyst said it almost seems as if the UK once

:03:55. > :03:59.Indian business but not Indians. That is a perception Mr Hammond will

:04:00. > :04:04.have to change. Consistently India has refused to lift restrictions on

:04:05. > :04:09.professional services like banking accounts, insurance. That is

:04:10. > :04:14.something the UK sees as its strong point and wants India to open up. It

:04:15. > :04:20.will be interesting if he can convince people that the UK can

:04:21. > :04:23.offer the services and India must open up. Real negotiations will only

:04:24. > :04:30.start after the Brexit processes over. In terms of the areas of

:04:31. > :04:33.business or the industries that will look to benefit, we have mentioned

:04:34. > :04:42.financial services. What other business leaders are keen to see

:04:43. > :04:47.this relationship drive? The UK is selling financial services as its

:04:48. > :04:54.strong point. Mr Hammond says, making India but to get it financed

:04:55. > :04:58.in the UK. -- make in India. Whichever sector in India is looking

:04:59. > :05:02.for more capital, the UK is selling itself as the point of finances. We

:05:03. > :05:07.have seen Massa la Bonds, a new class of debt instrument. The UK

:05:08. > :05:12.seems to be the primary target for Indian companies wanting these

:05:13. > :05:15.bonds. India needs about $1.5 trillion of infrastructure funding.

:05:16. > :05:23.That funding is likely to come more and more from products like these

:05:24. > :05:27.bonds. Mr Hammond is saying, we have innovative financial products. He

:05:28. > :05:34.wants more Indian companies to come to the UK for that. Thank you very

:05:35. > :05:43.much. We will keep you across how that trip goes. Some other news.

:05:44. > :05:45.President Trump has signed a highly controversial order that will roll

:05:46. > :05:47.back an Obama-era law restricting how internet

:05:48. > :05:51.service providers could use Americans' online data.

:05:52. > :05:54.The US House of Representatives and the Senate backed

:05:55. > :05:59.The bill was supposed to come into force in December,

:06:00. > :06:01.and would have prevented companies from selling information such

:06:02. > :06:04.as browsing history, location data, financial and medical details.

:06:05. > :06:07.South Africa's credit rating has been cut to junk status

:06:08. > :06:12.The agency said that political upheaval, including the recent

:06:13. > :06:14.sacking of Finance Minister Pravin Gordhan, was

:06:15. > :06:21.Another ratings agency, Moody's, said it was placing its South Africa

:06:22. > :06:24.rating, which is two notches above junk status,

:06:25. > :06:28.The news put more pressure on the rand, which was down

:06:29. > :06:49.You can check out our live page on the BBC website. This is a story

:06:50. > :06:52.that we have been covering. The fact the central bank in Australia kept

:06:53. > :06:57.interest rates on hold as expected today at 1.5%. Basically they are

:06:58. > :07:03.keeping a close eye on what happens in China. It is an important market

:07:04. > :07:07.for them. Also keeping an eye macron the property market, which has been

:07:08. > :07:14.buoyant and heart in Sydney and Melbourne. Lots more stories there.

:07:15. > :07:16.Another tough day on the markets for Toshiba.

:07:17. > :07:31.Is this to do with reports that the company may delay releasing its

:07:32. > :07:37.earnings report once again? Well, yes, partly. It is the second day in

:07:38. > :07:42.a row Toshiba shares have fallen. They fell 95% on Tuesday, mainly

:07:43. > :07:46.over concerns the technology company may need more financial support.

:07:47. > :07:53.This hasn't sparked by reports that save the company will meet creditors

:07:54. > :07:57.on Tuesday to ask them to accept shares in some of its businesses as

:07:58. > :08:01.collateral, presumably in exchange for them not calling in their loans.

:08:02. > :08:05.On Monday, shares went down after the company signalled it may miss a

:08:06. > :08:10.third deadline to release its results for the last quarter of

:08:11. > :08:16.2016. This was supposed to happen in February. The company has delayed

:08:17. > :08:19.formally reporting its earnings over problems at Westinghouse Electric,

:08:20. > :08:29.its US nuclear unit. Westinghouse has been hit and file for bankruptcy

:08:30. > :08:38.last week. Its annual loss could be a record 9.1 billion US dollars.

:08:39. > :08:48.Many thanks. The wider financial markets. Tokyo's benchmark fell to a

:08:49. > :08:52.ten week low. Pashey do in real difficulty, plunging almost 10% of

:08:53. > :08:58.its financial problems. There is a bank holiday in China. The markets

:08:59. > :09:05.were closed. This is what is happening in Europe. You can see

:09:06. > :09:10.markets pretty stable. The Dax in Frankfurt down very slightly. The

:09:11. > :09:16.CAC treading water. It comes after Wall Street closed slightly lower

:09:17. > :09:20.yesterday as March cars sales really disappointed investors. There was

:09:21. > :09:24.quite a lot of nervousness around the forthcoming meeting between

:09:25. > :09:26.President Trump and China's premiere.

:09:27. > :09:28.And Michelle Fleury has the details about what's ahead

:09:29. > :09:36.Donald Trump has already warned his meeting with the Chinese later will

:09:37. > :09:41.be very difficult. Just days ahead, the US president ordered officials

:09:42. > :09:48.to find solutions to America's trade deficit with China and other

:09:49. > :09:53.countries. With trade a key focus of the summit, all eyes will be on the

:09:54. > :09:56.latest US trade statistics due out this Tuesday. The figures for

:09:57. > :10:01.February will reveal the gap between what America sells to foreigners and

:10:02. > :10:07.what US customers buy from overseas. They are expected to show the trade

:10:08. > :10:11.deficit narrowed to around $46 billion from 48.5 billion in

:10:12. > :10:14.January. Also, keep an eye Mark Wright for Tesla after the company

:10:15. > :10:24.surprised investors were better than expected sales this year. It has

:10:25. > :10:27.become the second-biggest US car-maker by market capitalisation

:10:28. > :10:27.after only General Motors. That is Michelle.

:10:28. > :10:30.Joining us is Richard Fletcher, business editor at The Times.

:10:31. > :10:43.Good morning. She has said's up nicely. Tesla, I find that

:10:44. > :10:48.phenomenal, it's valuation, given the fact it has not made any money

:10:49. > :10:52.yet. The number of cars it has made is going up, but it is nothing in

:10:53. > :10:59.comparison to the millions ford makes? It is still tiny. Ford makes

:11:00. > :11:09.88 times the number of vehicles as Tesla. In terms of revenues, Ford's

:11:10. > :11:13.revenues are 20 times Tesla's. We were trying to do a graphic

:11:14. > :11:16.yesterday to illustrate the difference. It is hard to do profit

:11:17. > :11:22.because you are trying to compare a loss with a profit. It is amazing

:11:23. > :11:29.but it is about the market being really excited about electric cars.

:11:30. > :11:36.The problem is, Elon musk asked to ramp it up. There is excitement

:11:37. > :11:40.surrounding electric vehicles. The markets believe this is a game

:11:41. > :11:44.changer. Can they deliver? The markets expect them to ramp up

:11:45. > :11:49.production and deliver a large number of vehicles. Companies like

:11:50. > :11:54.Tesla, that are highly rated, if they don't deliver, UDCA big

:11:55. > :12:06.sell-off in their shares. We have to talk about Warren Buffet. He is very

:12:07. > :12:12.well known as being perhaps one of the world's most successful

:12:13. > :12:18.investors. He has had Coca-Cola in his portfolio since the beginning.

:12:19. > :12:22.He has a 9% stake. He is the biggest investor. I wonder if it is a slight

:12:23. > :12:28.marketing trick. Basically what they have done is they have put Cherry

:12:29. > :12:32.Coca-Cola on the cans in China. They have done a limited number of cans

:12:33. > :12:45.with Warren Buffet's face on it. It is intriguing. He is well-known

:12:46. > :12:48.China. The annual meeting is live streamed and translated into

:12:49. > :12:52.Mandarin. He does have a following. Is that because there are some any

:12:53. > :12:57.investors who are keen to get a foothold the financial market and

:12:58. > :13:02.earn their own fortune? Absolutely. He has got a following all over the

:13:03. > :13:13.world. He is popular here and in the US. He is a fan of Coke. He drinks

:13:14. > :13:16.?5 a day, apparently. Warren Buffet says he eats like a six-year-old.

:13:17. > :13:24.That is not what I would give my six-year-old!

:13:25. > :13:29.He has a five day diet. Have you ever been persuaded to buy something

:13:30. > :13:34.because of a celebrity endorsement? I haven't. It would probably put me

:13:35. > :13:40.off rather than encourage me. A few viewers have been in touch. Rob says

:13:41. > :13:44.only once has he been persuaded. Pierce Brosnan promoted an electric

:13:45. > :13:49.shaver when he was James Bond, and he says it is still as good today as

:13:50. > :13:54.it was then, a bit like himself. Robert says Margaret Thatcher

:13:55. > :13:58.convinced her -- him to buy his own counsel has!

:13:59. > :14:00.And shares in British Telecom and British Gas. I wouldn't have

:14:01. > :14:02.expected him to come up! We'll speak to the boss of Britain's

:14:03. > :14:12.esteemed etiquette guide, Debrett's, on how manners matter

:14:13. > :14:15.in the digital world. What annoys you about business

:14:16. > :14:19.manners? You're with Business

:14:20. > :14:26.Live from BBC News. Online fashion retailer Asos has

:14:27. > :14:30.reported another strong six months, The retailer had a good christmas,

:14:31. > :14:35.and saw revenue growth of 38% in the six months to

:14:36. > :14:43.the end of February. I imagine many retailers hearing

:14:44. > :14:46.that news will be envious. Honor Strachan is a retail analyst

:14:47. > :14:56.for Global Data Retail. How good are the numbers? Talk us

:14:57. > :14:59.through them. They're impressive given the trading environment at the

:15:00. > :15:06.moment. They have had an incredible Christmas. The full half is up 37%,

:15:07. > :15:13.38% with the UK performing and up 18%. It is outperforming the market

:15:14. > :15:19.and its competitors. The swing to digital is really continuing and it

:15:20. > :15:25.is making it harder for the bricks and mortar stores to compete? Asos

:15:26. > :15:28.has got its model correct and it understands its core audience and

:15:29. > :15:33.shopping habits. What we are starting to see is those channels

:15:34. > :15:36.work together and retailers really understand how online should

:15:37. > :15:40.compliment stores like we have seen with John Lewis reporting good

:15:41. > :15:44.results and that's because online and stores are working together. It

:15:45. > :15:49.is all to do with customer experience with those bricks and

:15:50. > :15:57.mortar stores, that's the only which you will get people in? It is about

:15:58. > :16:03.providing them with an joinl shopping experience and encouraging

:16:04. > :16:09.them to prows the ranges. 58% of orders is placed on mobile devices?

:16:10. > :16:12.It is a popular channel with 16 to 35-year-olds switching to mobile.

:16:13. > :16:15.They are shopping on the move and browsing on the move and using

:16:16. > :16:19.social media to share pictures and to share items they might want to

:16:20. > :16:23.buy. Mobile really is the way forward and retailers are starting

:16:24. > :16:34.to really invest in those platforms and make sure they are optimised for

:16:35. > :16:38.mobile shopping. Thank you. Topps Tiles, they saw their sales

:16:39. > :16:43.splip. They're the flooring retailer, of course. They saw a 2%

:16:44. > :16:49.drop in like for like revenues to the end of March. The Chief

:16:50. > :16:52.Executive is saying that market conditions have become tougher, but

:16:53. > :16:55.the business has responded well to control its costs. Lots more on our

:16:56. > :17:06.website as ever. Take a look. You're watching Business Live.

:17:07. > :17:09.Our top story: The UK Finance Minister

:17:10. > :17:11.Philip Hammond is leading He's tweeted that the importance

:17:12. > :17:16.of trade between the two countries will only grow after the UK leaves

:17:17. > :17:24.the European Union. A quick look at how

:17:25. > :17:36.markets are faring. One of the big winners is BP. It has

:17:37. > :17:41.been upgraded by an investment bank to a buy rating and people are

:17:42. > :17:43.buying it. They are being obedient and buying BP's shares today.

:17:44. > :17:46.They're up 2%. Good etiquette in business has often

:17:47. > :17:49.been described as a critical skill which can boost your chances

:17:50. > :17:53.of success, but in an increasingly online world where media and digital

:17:54. > :17:58.disruptors are breaking SOo is having impeccable

:17:59. > :18:04.manners really In a survey of more than 1,000

:18:05. > :18:09.people in the US last year, almost three-quarters thought

:18:10. > :18:10.manners and behaviour In an online poll, US school

:18:11. > :18:14.and university students point the blame firmly at social

:18:15. > :18:16.media saying technology So the etiquette firm Debrett's has

:18:17. > :18:25.been around for almost 250 years. It's trying to keep up with the way

:18:26. > :18:28.technology is changing business manners and has even released

:18:29. > :18:35.an etiquette guide for using Airbnb. Renee Kuo is managing

:18:36. > :18:47.director at Debrett's. Welcome to Business Live. Thank you

:18:48. > :18:54.very much. You've brought in a few examples of these new guides that

:18:55. > :18:58.you can get hold of and this one is called Guide To British Style.

:18:59. > :19:03.You've got it in Chinese and Arabic as well. Now, that really reflects

:19:04. > :19:09.the people that go to Bicester Village which is known as Terminal 6

:19:10. > :19:14.in the UK. Bicester Village is a luxury shopping destination and one

:19:15. > :19:20.of the UK's most popular tourist destinations. But why do you need a

:19:21. > :19:25.guide? You go in the shop, show them the money and come away with the

:19:26. > :19:29.designer goods, isn't that it? The guide is for two reasons, there are

:19:30. > :19:32.traditional season events which are a main attraction for global

:19:33. > :19:36.visitors and they don't know the dress codes for those events. There

:19:37. > :19:40.might be a lot of British people who might not know the dress code. You

:19:41. > :19:44.shouldn't wear bright colours in the countryside. We wouldn't be any good

:19:45. > :19:49.there! Is that what it says in your guide?

:19:50. > :19:59.There might be some shooting going on on the weekend as well! You've

:20:00. > :20:05.updated your guide to reflect the digital world, haven't you? Yes. Why

:20:06. > :20:09.do you need an Airbnb guide? An etiquette to home sharing is very

:20:10. > :20:12.important. You are going to stay at somebody's home, especially if they

:20:13. > :20:16.are from a different culture, do you take off your shoes, if you've cut

:20:17. > :20:20.your finger, do you rummage through the medicine cabinet to find the

:20:21. > :20:24.plaster? There have to be rules it make people feel comfortable and

:20:25. > :20:29.confident in unfamiliar, business and social and cultural situations.

:20:30. > :20:34.As well, for people who are wheeling and dealing like Philip Hammond

:20:35. > :20:39.today, Mark Carney in India, it is extremely critical they get it right

:20:40. > :20:43.in terms of etiquette. Absolutely. For many of us who travel over the

:20:44. > :20:47.world, culture, there are huge differences just in how you greet

:20:48. > :20:52.somebody physically and verbally? It is not just from a social etiquette

:20:53. > :20:55.prospective. You don't want to be representing your company and lose

:20:56. > :20:59.the deal because you made a kind of cultural gaffe. So, for example, if

:21:00. > :21:03.you're a western executive and gu to China and you take a business card

:21:04. > :21:08.and you're relaxed with it as we are in the western world and you might

:21:09. > :21:13.write somebody's mobile number on the back, you've insulted that

:21:14. > :21:17.person. There is a respect and a an etiquette and protocol to all forms

:21:18. > :21:20.of business and that's from meeting and greeting somebody to accepting a

:21:21. > :21:25.business card to the hierarchy of a business meeting. Are you reflecting

:21:26. > :21:31.the use of Twitter for example in social correspondence in your latest

:21:32. > :21:35.guides? We have a guide to etiquette. It's so funny to think

:21:36. > :21:43.that technology is connecting us more and more and yet interpersonal

:21:44. > :21:49.skills are diminishing and there was a study by Harvard, Stanford that

:21:50. > :21:55.shows that job success is 85% due to social and soft skills and only 15%

:21:56. > :21:58.due to technical skills. The Wall Street Journal found that recruiters

:21:59. > :22:02.couldn't find enough people with interpersonal skills. That's a

:22:03. > :22:07.result of people feeling more comfortable hiding behind a screen

:22:08. > :22:11.or hiding under their head phones these days. It's fascinating. We've

:22:12. > :22:16.got to leave it there. I'm calling time on the interview. It has been

:22:17. > :22:20.great to have you in. Thanks, it has been a pleasure.

:22:21. > :22:27.ABTA is warning there is no fall Back option for airlines if the UK

:22:28. > :22:32.is unable to secure an aviation agreement during the Brexit

:22:33. > :22:38.negotiations. Richard Westcott has been looking at the pit falls that

:22:39. > :22:42.Brexit could create for the business of aviation.

:22:43. > :22:45.Lots of businesses want to get to the front of the queue because they

:22:46. > :22:49.want to make sure that it's their Brexit agreement that's sorted out

:22:50. > :22:57.first. And today, it's the travel industry's turn to wade in. At the

:22:58. > :23:00.moment, any EU airline can fly anywhere in Europe and that's why we

:23:01. > :23:05.get such cheep flights, but that deal runs out in two years when we

:23:06. > :23:09.leave the EU, if they don't replace it, there is a slim chance that

:23:10. > :23:13.European flights will have to stop for a while.

:23:14. > :23:18.I know that sounds a bit dramatic, but it is not me saying t it is the

:23:19. > :23:23.boss of Europe's biggest airline, Michael O'Leary at Ryanair. But

:23:24. > :23:26.other airlines don't share his apocalyptic view. EasyJet is

:23:27. > :23:31.Britain's biggest airline and they tell me they are very confident a

:23:32. > :23:36.new agreement will be reached soon. And that is for one simple reason -

:23:37. > :23:41.because both sides will lose too much money without it. Because all

:23:42. > :23:45.of those tourists and all of those business people, it's obvious, but

:23:46. > :23:49.they have to fly. The airlines have good reason to want a quick deal.

:23:50. > :23:52.They plan their schedules a year-and-a-half ahead. So, they need

:23:53. > :23:57.to be able to reassure their customers that when they book their

:23:58. > :24:08.holiday in 2019, their plane will definitely be able to take off.

:24:09. > :24:15.We were having a giggle about our own etiquette faux pass!

:24:16. > :24:24.We have got it talk about this story which has serious ramifications,

:24:25. > :24:31.President Trump, we mentioned mentioned him in the show and he's

:24:32. > :24:35.creeping in. Explain what happened? People when it comes to Trump focus

:24:36. > :24:40.on the wall, trade polls why and tax policy, but he is doing a lot of

:24:41. > :24:44.things behind the scenes and this is about internet privacy. Google and

:24:45. > :24:48.Facebook take your data and use it to sell ads to people. This is about

:24:49. > :24:52.what cable companies and broadband companies can do with your data. In

:24:53. > :24:55.America they have been stopped from harvesting your data, they are not

:24:56. > :25:00.allowed to do what Google and Facebook do. Trump has signed the

:25:01. > :25:11.Obama law out of the blocks, now they can take your data. It was

:25:12. > :25:17.chftion when they started doing it. You can choose not to use Google for

:25:18. > :25:21.Facebook, but you can't choose not to use a broadband company. All the

:25:22. > :25:26.companies are encroaching each other's territory? Where is the

:25:27. > :25:32.distinction between internet service provider and Google and Facebook?

:25:33. > :25:38.You could avoid Google if you wanted to, but do need to get your internet

:25:39. > :25:45.connection from somewhere. Justin Trudeau the leader of Canada, the

:25:46. > :25:48.Prime Minister there, he is not pleased with Bombardier executive

:25:49. > :25:56.packages? It is a hot topic. Theresa May has got involved. In can darks

:25:57. > :26:00.Bombardier got into trouble a few years ago. It got bailed out by the

:26:01. > :26:03.Government and,000 they want to pay their executives more and the

:26:04. > :26:07.Government says no. Thank you, Dominic.

:26:08. > :26:13.Good morning. The pressure is still fairly high

:26:14. > :26:17.across the UK. There will be more cloud around for tomorrow today than

:26:18. > :26:18.we have seen in recent days, but not for all. For example, here this East

:26:19. > :26:20.Yorkshire this