04/04/2017 BBC Business Live


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This is Business Live from BBC News, with Susannah Streeter


Gateway to India - Britain's Chancellor looks


to the sub-continent for new trade ties in a post-Brexit world.


Live from London, that's our top story on Tuesday, 4 April.


As the UK leaves the European Union, can it get a boost helping India's


development as one of the world's fastest growing economies?


President Trump lands a blow to internet privacy,


paving the way for internet providers to sell their


We look of the financial markets in Europe.


And we'll be getting the inside track on good manners.


In a digital world how much can Debrett's help?


We'll speak to the boss of revered etiqutte guide about how to behave


And today, as the worlds most famous investor, Warren Buffett,


is being used to sell cherry cola in China, we want to know,


which celebrity endorsements have convinced you to make a purchase.


We start in India, where the UK Finance Minister is leading


It's a two-day visit, where Philip Hammond will stress


that Britain is open for business and looking for new trade deals,


as the UK negotiates its way out of the European Union.


Both countries have had a relationship spanning many years.


And let's talk you through the relationship.


In 2014, the value of all the goods and services sold between India


and the United Kingdom was about $24 billion.


And it works in India's favour - they export a lot more goods


Their top exports are clothing, footwear and medical items.


What are the countries hoping to gain in the future?


India is looking to raise more than $1 trillion for infrastructure


over the next decade, and the UK hopes it can


benefit from that, given its position as the world's top


In return, India will be looking for greater freedom of movement


for its citizens who want to work and study in the UK.


Nice to see you again. Philip Hammond and Mark Carney, they are


trying to lay foundations for any future trade deals. But many argue


that some would see a future trade relationship as fairly slim for


various reasons? Absolutely. There are many sticking points between the


countries. Many are looking at the two countries as natural partners


given the historic relationship, as well as common ground in terms of


business. English is a common language. A lot of Indian companies


naturally go to the UK as a senator for the rest of Europe to read. That


is likely to change. -- centre. The Visa is a big issue, especially for


Indian students. One analyst said it almost seems as if the UK once


Indian business but not Indians. That is a perception Mr Hammond will


have to change. Consistently India has refused to lift restrictions on


professional services like banking accounts, insurance. That is


something the UK sees as its strong point and wants India to open up. It


will be interesting if he can convince people that the UK can


offer the services and India must open up. Real negotiations will only


start after the Brexit processes over. In terms of the areas of


business or the industries that will look to benefit, we have mentioned


financial services. What other business leaders are keen to see


this relationship drive? The UK is selling financial services as its


strong point. Mr Hammond says, making India but to get it financed


in the UK. -- make in India. Whichever sector in India is looking


for more capital, the UK is selling itself as the point of finances. We


have seen Massa la Bonds, a new class of debt instrument. The UK


seems to be the primary target for Indian companies wanting these


bonds. India needs about $1.5 trillion of infrastructure funding.


That funding is likely to come more and more from products like these


bonds. Mr Hammond is saying, we have innovative financial products. He


wants more Indian companies to come to the UK for that. Thank you very


much. We will keep you across how that trip goes. Some other news.


President Trump has signed a highly controversial order that will roll


back an Obama-era law restricting how internet


service providers could use Americans' online data.


The US House of Representatives and the Senate backed


The bill was supposed to come into force in December,


and would have prevented companies from selling information such


as browsing history, location data, financial and medical details.


South Africa's credit rating has been cut to junk status


The agency said that political upheaval, including the recent


sacking of Finance Minister Pravin Gordhan, was


Another ratings agency, Moody's, said it was placing its South Africa


rating, which is two notches above junk status,


The news put more pressure on the rand, which was down


You can check out our live page on the BBC website. This is a story


that we have been covering. The fact the central bank in Australia kept


interest rates on hold as expected today at 1.5%. Basically they are


keeping a close eye on what happens in China. It is an important market


for them. Also keeping an eye macron the property market, which has been


buoyant and heart in Sydney and Melbourne. Lots more stories there.


Another tough day on the markets for Toshiba.


Is this to do with reports that the company may delay releasing its


earnings report once again? Well, yes, partly. It is the second day in


a row Toshiba shares have fallen. They fell 95% on Tuesday, mainly


over concerns the technology company may need more financial support.


This hasn't sparked by reports that save the company will meet creditors


on Tuesday to ask them to accept shares in some of its businesses as


collateral, presumably in exchange for them not calling in their loans.


On Monday, shares went down after the company signalled it may miss a


third deadline to release its results for the last quarter of


2016. This was supposed to happen in February. The company has delayed


formally reporting its earnings over problems at Westinghouse Electric,


its US nuclear unit. Westinghouse has been hit and file for bankruptcy


last week. Its annual loss could be a record 9.1 billion US dollars.


Many thanks. The wider financial markets. Tokyo's benchmark fell to a


ten week low. Pashey do in real difficulty, plunging almost 10% of


its financial problems. There is a bank holiday in China. The markets


were closed. This is what is happening in Europe. You can see


markets pretty stable. The Dax in Frankfurt down very slightly. The


CAC treading water. It comes after Wall Street closed slightly lower


yesterday as March cars sales really disappointed investors. There was


quite a lot of nervousness around the forthcoming meeting between


President Trump and China's premiere.


And Michelle Fleury has the details about what's ahead


Donald Trump has already warned his meeting with the Chinese later will


be very difficult. Just days ahead, the US president ordered officials


to find solutions to America's trade deficit with China and other


countries. With trade a key focus of the summit, all eyes will be on the


latest US trade statistics due out this Tuesday. The figures for


February will reveal the gap between what America sells to foreigners and


what US customers buy from overseas. They are expected to show the trade


deficit narrowed to around $46 billion from 48.5 billion in


January. Also, keep an eye Mark Wright for Tesla after the company


surprised investors were better than expected sales this year. It has


become the second-biggest US car-maker by market capitalisation


after only General Motors. That is Michelle.


Joining us is Richard Fletcher, business editor at The Times.


Good morning. She has said's up nicely. Tesla, I find that


phenomenal, it's valuation, given the fact it has not made any money


yet. The number of cars it has made is going up, but it is nothing in


comparison to the millions ford makes? It is still tiny. Ford makes


88 times the number of vehicles as Tesla. In terms of revenues, Ford's


revenues are 20 times Tesla's. We were trying to do a graphic


yesterday to illustrate the difference. It is hard to do profit


because you are trying to compare a loss with a profit. It is amazing


but it is about the market being really excited about electric cars.


The problem is, Elon musk asked to ramp it up. There is excitement


surrounding electric vehicles. The markets believe this is a game


changer. Can they deliver? The markets expect them to ramp up


production and deliver a large number of vehicles. Companies like


Tesla, that are highly rated, if they don't deliver, UDCA big


sell-off in their shares. We have to talk about Warren Buffet. He is very


well known as being perhaps one of the world's most successful


investors. He has had Coca-Cola in his portfolio since the beginning.


He has a 9% stake. He is the biggest investor. I wonder if it is a slight


marketing trick. Basically what they have done is they have put Cherry


Coca-Cola on the cans in China. They have done a limited number of cans


with Warren Buffet's face on it. It is intriguing. He is well-known


China. The annual meeting is live streamed and translated into


Mandarin. He does have a following. Is that because there are some any


investors who are keen to get a foothold the financial market and


earn their own fortune? Absolutely. He has got a following all over the


world. He is popular here and in the US. He is a fan of Coke. He drinks


?5 a day, apparently. Warren Buffet says he eats like a six-year-old.


That is not what I would give my six-year-old!


He has a five day diet. Have you ever been persuaded to buy something


because of a celebrity endorsement? I haven't. It would probably put me


off rather than encourage me. A few viewers have been in touch. Rob says


only once has he been persuaded. Pierce Brosnan promoted an electric


shaver when he was James Bond, and he says it is still as good today as


it was then, a bit like himself. Robert says Margaret Thatcher


convinced her -- him to buy his own counsel has!


And shares in British Telecom and British Gas. I wouldn't have


expected him to come up! We'll speak to the boss of Britain's


esteemed etiquette guide, Debrett's, on how manners matter


in the digital world. What annoys you about business


manners? You're with Business


Live from BBC News. Online fashion retailer Asos has


reported another strong six months, The retailer had a good christmas,


and saw revenue growth of 38% in the six months to


the end of February. I imagine many retailers hearing


that news will be envious. Honor Strachan is a retail analyst


for Global Data Retail. How good are the numbers? Talk us


through them. They're impressive given the trading environment at the


moment. They have had an incredible Christmas. The full half is up 37%,


38% with the UK performing and up 18%. It is outperforming the market


and its competitors. The swing to digital is really continuing and it


is making it harder for the bricks and mortar stores to compete? Asos


has got its model correct and it understands its core audience and


shopping habits. What we are starting to see is those channels


work together and retailers really understand how online should


compliment stores like we have seen with John Lewis reporting good


results and that's because online and stores are working together. It


is all to do with customer experience with those bricks and


mortar stores, that's the only which you will get people in? It is about


providing them with an joinl shopping experience and encouraging


them to prows the ranges. 58% of orders is placed on mobile devices?


It is a popular channel with 16 to 35-year-olds switching to mobile.


They are shopping on the move and browsing on the move and using


social media to share pictures and to share items they might want to


buy. Mobile really is the way forward and retailers are starting


to really invest in those platforms and make sure they are optimised for


mobile shopping. Thank you. Topps Tiles, they saw their sales


splip. They're the flooring retailer, of course. They saw a 2%


drop in like for like revenues to the end of March. The Chief


Executive is saying that market conditions have become tougher, but


the business has responded well to control its costs. Lots more on our


website as ever. Take a look. You're watching Business Live.


Our top story: The UK Finance Minister


Philip Hammond is leading He's tweeted that the importance


of trade between the two countries will only grow after the UK leaves


the European Union. A quick look at how


markets are faring. One of the big winners is BP. It has


been upgraded by an investment bank to a buy rating and people are


buying it. They are being obedient and buying BP's shares today.


They're up 2%. Good etiquette in business has often


been described as a critical skill which can boost your chances


of success, but in an increasingly online world where media and digital


disruptors are breaking SOo is having impeccable


manners really In a survey of more than 1,000


people in the US last year, almost three-quarters thought


manners and behaviour In an online poll, US school


and university students point the blame firmly at social


media saying technology So the etiquette firm Debrett's has


been around for almost 250 years. It's trying to keep up with the way


technology is changing business manners and has even released


an etiquette guide for using Airbnb. Renee Kuo is managing


director at Debrett's. Welcome to Business Live. Thank you


very much. You've brought in a few examples of these new guides that


you can get hold of and this one is called Guide To British Style.


You've got it in Chinese and Arabic as well. Now, that really reflects


the people that go to Bicester Village which is known as Terminal 6


in the UK. Bicester Village is a luxury shopping destination and one


of the UK's most popular tourist destinations. But why do you need a


guide? You go in the shop, show them the money and come away with the


designer goods, isn't that it? The guide is for two reasons, there are


traditional season events which are a main attraction for global


visitors and they don't know the dress codes for those events. There


might be a lot of British people who might not know the dress code. You


shouldn't wear bright colours in the countryside. We wouldn't be any good


there! Is that what it says in your guide?


There might be some shooting going on on the weekend as well! You've


updated your guide to reflect the digital world, haven't you? Yes. Why


do you need an Airbnb guide? An etiquette to home sharing is very


important. You are going to stay at somebody's home, especially if they


are from a different culture, do you take off your shoes, if you've cut


your finger, do you rummage through the medicine cabinet to find the


plaster? There have to be rules it make people feel comfortable and


confident in unfamiliar, business and social and cultural situations.


As well, for people who are wheeling and dealing like Philip Hammond


today, Mark Carney in India, it is extremely critical they get it right


in terms of etiquette. Absolutely. For many of us who travel over the


world, culture, there are huge differences just in how you greet


somebody physically and verbally? It is not just from a social etiquette


prospective. You don't want to be representing your company and lose


the deal because you made a kind of cultural gaffe. So, for example, if


you're a western executive and gu to China and you take a business card


and you're relaxed with it as we are in the western world and you might


write somebody's mobile number on the back, you've insulted that


person. There is a respect and a an etiquette and protocol to all forms


of business and that's from meeting and greeting somebody to accepting a


business card to the hierarchy of a business meeting. Are you reflecting


the use of Twitter for example in social correspondence in your latest


guides? We have a guide to etiquette. It's so funny to think


that technology is connecting us more and more and yet interpersonal


skills are diminishing and there was a study by Harvard, Stanford that


shows that job success is 85% due to social and soft skills and only 15%


due to technical skills. The Wall Street Journal found that recruiters


couldn't find enough people with interpersonal skills. That's a


result of people feeling more comfortable hiding behind a screen


or hiding under their head phones these days. It's fascinating. We've


got to leave it there. I'm calling time on the interview. It has been


great to have you in. Thanks, it has been a pleasure.


ABTA is warning there is no fall Back option for airlines if the UK


is unable to secure an aviation agreement during the Brexit


negotiations. Richard Westcott has been looking at the pit falls that


Brexit could create for the business of aviation.


Lots of businesses want to get to the front of the queue because they


want to make sure that it's their Brexit agreement that's sorted out


first. And today, it's the travel industry's turn to wade in. At the


moment, any EU airline can fly anywhere in Europe and that's why we


get such cheep flights, but that deal runs out in two years when we


leave the EU, if they don't replace it, there is a slim chance that


European flights will have to stop for a while.


I know that sounds a bit dramatic, but it is not me saying t it is the


boss of Europe's biggest airline, Michael O'Leary at Ryanair. But


other airlines don't share his apocalyptic view. EasyJet is


Britain's biggest airline and they tell me they are very confident a


new agreement will be reached soon. And that is for one simple reason -


because both sides will lose too much money without it. Because all


of those tourists and all of those business people, it's obvious, but


they have to fly. The airlines have good reason to want a quick deal.


They plan their schedules a year-and-a-half ahead. So, they need


to be able to reassure their customers that when they book their


holiday in 2019, their plane will definitely be able to take off.


We were having a giggle about our own etiquette faux pass!


We have got it talk about this story which has serious ramifications,


President Trump, we mentioned mentioned him in the show and he's


creeping in. Explain what happened? People when it comes to Trump focus


on the wall, trade polls why and tax policy, but he is doing a lot of


things behind the scenes and this is about internet privacy. Google and


Facebook take your data and use it to sell ads to people. This is about


what cable companies and broadband companies can do with your data. In


America they have been stopped from harvesting your data, they are not


allowed to do what Google and Facebook do. Trump has signed the


Obama law out of the blocks, now they can take your data. It was


chftion when they started doing it. You can choose not to use Google for


Facebook, but you can't choose not to use a broadband company. All the


companies are encroaching each other's territory? Where is the


distinction between internet service provider and Google and Facebook?


You could avoid Google if you wanted to, but do need to get your internet


connection from somewhere. Justin Trudeau the leader of Canada, the


Prime Minister there, he is not pleased with Bombardier executive


packages? It is a hot topic. Theresa May has got involved. In can darks


Bombardier got into trouble a few years ago. It got bailed out by the


Government and,000 they want to pay their executives more and the


Government says no. Thank you, Dominic.


Good morning. The pressure is still fairly high


across the UK. There will be more cloud around for tomorrow today than


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


Yorkshire this


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