:00:10. > :00:16.Hello, this is Business Live from BBC News. The US air strikes on
:00:17. > :00:19.Syria overshadowed President Trump's meeting on trade and security with
:00:20. > :00:20.China's President. Live from London that's our top story on Friday 7th
:00:21. > :00:42.April. With little sign of a breakthrough
:00:43. > :00:48.on efforts to tackle America's huge trade deficit, will the two men
:00:49. > :00:53.manage to avoid a trade war? Also coming up, it's a lawsuit that
:00:54. > :00:59.probably runs for more than 140 characters, Twitter sues the US
:01:00. > :01:02.Government after it demanded to know the identity of an anti-Trump
:01:03. > :01:06.account. Also we will look at how the markets are doing. A lower open
:01:07. > :01:11.at the start of the trading day across Europe and safe haven assets
:01:12. > :01:18.on the rise after news of that air strike by the US on Syria.
:01:19. > :01:23.We will get the inside track on how Facebook is stepping up the fight
:01:24. > :01:30.against fake news and the rest of the week's big tech stories
:01:31. > :01:34.including a story on Tesla. Talking of fake news it's currently a hot
:01:35. > :01:41.topic so today we want to know which stories have caught you out and how
:01:42. > :01:50.did you realise? Let us know, just use the hashtag BBC Biz Live.
:01:51. > :02:00.A warm welcome to the programme. The US President has been holding his
:02:01. > :02:04.first face-to-face meeting with his Chinese counterpart. Trade and North
:02:05. > :02:09.Korea were supposed to be at the top of the agenda but the summit has
:02:10. > :02:13.been overshadowed by the US carrying out missile strikes on Syrian
:02:14. > :02:19.Government air bases. Those were in response to a suspected chemical
:02:20. > :02:23.weapons attack this week. In Florida, Donald Trump said
:02:24. > :02:25.discussions with XI had been long and he was confident they would
:02:26. > :02:29.develop a great relationship. They are the leaders of the world's two
:02:30. > :02:33.biggest economies and they have been expected to discuss the US's huge
:02:34. > :02:38.trade deficit with China, the fact that America imports far more from
:02:39. > :02:42.China than the other way around. But in a sign their raegs relationship
:02:43. > :02:47.seems to have got off to a good start Chinese state media are
:02:48. > :03:01.reporting Donald Trump has accepted an invitation to China from MrXi.
:03:02. > :03:08.Gareth Leathers joins us, senior Asia economist at Capital Economics.
:03:09. > :03:12.Also we are getting some lines from the Chinese news agency here saying
:03:13. > :03:18.that the first meeting with the two Presidents urged co-operation with
:03:19. > :03:27.the US on investment, infrastructure and energy: There does seem to be
:03:28. > :03:31.back peddling from the President. A year ago President Trump - now he is
:03:32. > :03:37.saying it's the start of a great relationship, better news for us?
:03:38. > :03:41.This is a familiar pattern, all Presidents on the campaign trail,
:03:42. > :03:45.they were all the same, when they get into office they realise that
:03:46. > :03:49.the relationship with China is normally more complicated, that it
:03:50. > :03:54.can't be boiled down to a single issue such as trade. There are
:03:55. > :03:57.encouraging signs, I don't want to discount Trump's unpredictability,
:03:58. > :04:01.there are signs he is taking a more pragmatic line to China which is
:04:02. > :04:04.encouraging. He is still going to be want to be seen doing something
:04:05. > :04:09.about the trade, he has been going on about the trade deficit and job
:04:10. > :04:11.losses. How does America reduce the trade deficit, they can't say to
:04:12. > :04:15.China you have to buy more goods from America, how do you resolve
:04:16. > :04:20.that? It's very difficult. One option which obviously Trump seemed
:04:21. > :04:23.to favour on the campaign trail was large-scale tariffs, labelling China
:04:24. > :04:27.a currency manipulator, he is rowing back in the short-term from that.
:04:28. > :04:32.What he is hoping to do I think is build up a decent relationship with
:04:33. > :04:37.his Chinese counterpart in the hope he will get easy concessions, you
:04:38. > :04:41.may see a big order of Chinese Boeing from the US in the next
:04:42. > :04:44.months. He may also seek concessions so the Chinese may look to open up
:04:45. > :04:48.domestic markets in terms of levelling the playing field which is
:04:49. > :04:53.one of the big complaints American companies have had recently. Of
:04:54. > :04:59.course the other big thing on their agenda will be North Korea. China is
:05:00. > :05:03.so important in terms of the North Korea's trade with anywhere else, a
:05:04. > :05:08.lot of that trade goes through China. Yeah, Trump's been clear, he
:05:09. > :05:13.has been putting pressure on the Chinese to try and act more
:05:14. > :05:16.decisively with North Korea. And it's North Korea, sorry it's China
:05:17. > :05:20.that holds all the leverage with North Korea, it is its biggest
:05:21. > :05:27.trading partner and key ally. He has said if China doesn't follow through
:05:28. > :05:30.with some commitments he is prepared to act unilaterally and the action
:05:31. > :05:35.in Syria today is maybe a precursor to what he is prepared to do in
:05:36. > :05:40.North Korea, he is showing America is tough and prepared to take a
:05:41. > :05:44.stand. We have been talking about it the last couple of days, this
:05:45. > :05:46.important meeting but for people watching this is important for
:05:47. > :05:51.everybody that these two gentlemen behind us here and the two nations
:05:52. > :05:56.actually get along and continue trading without a trade war. A
:05:57. > :06:03.healthy one and two of the world's biggest economies is good for us.
:06:04. > :06:07.It's the world's most important relationship, the last thing the
:06:08. > :06:13.world needs is a trade war and that would hurt everyone. Thank you very
:06:14. > :06:20.much. Some other news now. Spotify is
:06:21. > :06:22.reportedly considering to a direct stock market listing, instead of
:06:23. > :06:27.taking the usual route of holding an initial public offering. It is a
:06:28. > :06:30.relatively rare way to sell shares in a company. The public would be
:06:31. > :06:35.able to buy and share sells but the company would not raise any fresh
:06:36. > :06:47.funds. We will talk about that shortly.
:06:48. > :06:49.Hyundai and Kia Motors plan to recall more than 170,000
:06:50. > :06:51.vehicles in South Korea because of an engine defect.
:06:52. > :06:54.The recall covers models equipped with a 2-liter or 2.4-liter Theta
:06:55. > :06:59.two gasoline engine produced before August 2013.
:07:00. > :07:01.The South Korean transport ministry said metal debris in crankshafts
:07:02. > :07:30.could cause engine damage, leading to possible engine stalling.
:07:31. > :07:37.Now to Asia, where Korean tech giant Samsung Electronics has published
:07:38. > :07:40.a profit estimate for the first quarter that makes it
:07:41. > :07:42.the best quarter for the company in three years.
:07:43. > :07:57.It's not a shabby number. That's right impressive numbers today. As
:07:58. > :08:01.we have been reporting Samsung has had a really rough ride in recent
:08:02. > :08:05.times and just today the boss appeared in court for the first
:08:06. > :08:09.time. He of course has been sitting in jail after being charged in a
:08:10. > :08:16.corruption scandal that brought down South Korea's President. Going back
:08:17. > :08:19.to those numbers, it really comes from the memory trip division as
:08:20. > :08:25.well as flat panel display business. Sales have been strong and that has
:08:26. > :08:30.led to positive profit forecasts which has forecast to jump by about
:08:31. > :08:34.48% to nearly $9 billion. Of course these numbers are expected to help
:08:35. > :08:38.Samsung shares even more. They've been trading at record highs in
:08:39. > :08:41.recent weeks which goes to show this corruption scandal suspect putting
:08:42. > :08:45.that much of a dent in its bottom line. Good to see you, thank you
:08:46. > :08:51.very much. Let's look at the markets.
:08:52. > :08:53.Bonds, the yen and gold jumped in Asia - Investors turning
:08:54. > :08:55.to safe-haven assets after the United States
:08:56. > :08:57.launched cruise missiles against an air base in Syria.
:08:58. > :08:59.It means attention is focused on the Middle East
:09:00. > :09:02.and the impact on the oil price - which has risen -
:09:03. > :09:06.rather than the meeting between President Trump and Xi
:09:07. > :09:11.The US dollar dropped , while gold and oil prices rallied hard,
:09:12. > :09:15.though the early market panic calmed when a US official called the attack
:09:16. > :09:18.a "one-off," with no plans for escalation.
:09:19. > :09:31.A softer start to the trading day across Europe.
:09:32. > :09:34.One other story we're keeping an eye on is the row between Twitter
:09:35. > :09:39.Twitter shares ended the trading day on Wall Street lower.
:09:40. > :09:42.The social media giant is suing the Trump administration
:09:43. > :09:44.after authorities demanded Twitter to reveal the identity
:09:45. > :09:51.The anonymous profile criticised the government's immigration policy.
:09:52. > :09:59.Dave Lee sent us this from San Francisco.
:10:00. > :10:05.In January, when Donald Trump became President Trump several so-called
:10:06. > :10:08.alternative accounts for US Government services began appearing
:10:09. > :10:11.online. Most claim to be authored by current or former employees at those
:10:12. > :10:18.agencies and offered harsh criticisms of their new boss. Now
:10:19. > :10:20.it's been revealed that US customs and border protection filed
:10:21. > :10:24.documents demanding Twitter reveal the identity of at least one of the
:10:25. > :10:28.tweeters speaking ill of President Trump. The law the Government is
:10:29. > :10:33.using to meant to be for finding out more information about the source of
:10:34. > :10:36.imported goods coming into the USA and not from unmasking online
:10:37. > :10:40.identities. Therefore, Twitter has asked the judge here to refuse the
:10:41. > :10:45.request calling it an issue of free speech. Twitter's move has been
:10:46. > :10:49.strongly backed by groups who support strong online privacy.
:10:50. > :10:55.Twitter is protecting its users here. I think as a platform it
:10:56. > :10:57.really wants to be a place where people can speak freely. Yeah, I
:10:58. > :11:01.think this is really important for them to be doing and I think they're
:11:02. > :11:05.doing it from a place of actually wanting to protect their users and
:11:06. > :11:08.protect speech. President Trump famously loves using
:11:09. > :11:12.Twitter because he says it gives him the freedom to say what he wants
:11:13. > :11:15.without having to go via the mainstream media. With this lawsuit
:11:16. > :11:20.Twitter is saying that freedom should apply to everybody on the
:11:21. > :11:31.network, even if they're anonymous and even if they're criticising the
:11:32. > :11:38.commander in chief. Just saying his beard gets thicker
:11:39. > :11:47.and thicker! Richard Dunnebar joins us. US jobs,
:11:48. > :11:50.it's that time of the month, it's Friday, and they're expecting
:11:51. > :11:54.another big number that continues to indicate that American employment is
:11:55. > :11:58.full at the moment. Year, we are expecting quarter of a million new
:11:59. > :12:01.jobs to be added. The economy is at full employment, as importantly
:12:02. > :12:04.those jobs are paying more than inflation so Americans have more
:12:05. > :12:08.money in their pocket so consumer is doing well. The by-product is
:12:09. > :12:13.interest rates are starting to rise now. The chairman of the Federal
:12:14. > :12:17.Reserve saying the US economy is maybe running a little hotter than
:12:18. > :12:21.it should and it's time to touch the brake a little. And that's an
:12:22. > :12:24.increase in rates. Yeah, nevertheless the economy is in rude
:12:25. > :12:28.health and that's for the rest of us is a rising tide that lifts many
:12:29. > :12:33.boats and if the US economy is doing well other economies tend to do well
:12:34. > :12:37.also. Something we were talking about earlier, Spotify and
:12:38. > :12:41.by-passing the usual route of public offering, just going to list and put
:12:42. > :12:45.shares on the market. Explain for us why that makes a difference and how
:12:46. > :12:48.it works. Why would you come to the market, to either raise new money or
:12:49. > :12:51.to sell shares that you already have, if you are a big private
:12:52. > :12:54.company. But you don't have to do that. You can list the shares and
:12:55. > :12:58.say that's providing a value for the company, people can see the value
:12:59. > :13:01.and if people or others want to buy or sell shares in future they can.
:13:02. > :13:05.They obviously don't need to raise new money or they don't feel the
:13:06. > :13:10.need to sell existing shares they've got. Doesn't the IPO give you the
:13:11. > :13:15.value of the stock? Exactly. So it will list on the market. The market
:13:16. > :13:20.players will say this is... What do you list it for? Just to provide
:13:21. > :13:24.that value. And to give you options in future. At some point you might
:13:25. > :13:29.want to raise money. At the moment all I get is the value and that's
:13:30. > :13:35.useful. If I am Spotify and I go there is the shares, what do they
:13:36. > :13:39.start at? How do you price it? People will buy and sell them and
:13:40. > :13:43.they'll find a price. Obviously the management at Spotify don't wish to
:13:44. > :13:48.sell many shares and raise new capital. Interesting. Subscribers
:13:49. > :13:50.continue to grow, I think. It's a fabulous product, it's been a
:13:51. > :13:55.fabulous success for the user of that product. It doesn't make any
:13:56. > :14:00.money yet. It's normally helpful at some point in a corporate history.
:14:01. > :14:05.Like a lot of those tech companies, not all of them, but some not making
:14:06. > :14:06.a profit. You are going to take us through some of the paper stories.
:14:07. > :14:11.Speak to you later. properties compared to the same
:14:12. > :14:34.period last year. That's according to latest
:14:35. > :14:39.figures from online property portal Rightmove.
:14:40. > :14:42.For the first time since 2014, asking rents outside London fell
:14:43. > :14:48.in the first quarter of the year, down by 0.4% on the
:14:49. > :14:52.previous quarter. Theo Leggett is in our
:14:53. > :15:06.business newsroom. Any breakdown or sign of where the
:15:07. > :15:09.biggest changes are or is this across the board? To a certain
:15:10. > :15:13.extent it's across the board, yes it's an average figure but the trend
:15:14. > :15:17.is that last year there were changes in stamp duty which meant a lot of
:15:18. > :15:21.people planning to invest in rental properties did so in a rush. There's
:15:22. > :15:24.been this surge of rental properties coming on to the market. Great news
:15:25. > :15:28.if you are a representer because that's been weighing on rents and
:15:29. > :15:33.across the country the rise over the past year was only 1. 8% and in the
:15:34. > :15:38.first quarter of the year average rents actually fell. But there is a
:15:39. > :15:42.big difference across the country. In London, for example, across the
:15:43. > :15:48.year rents have fallen by more than 4%. Obviously the London market has
:15:49. > :15:55.been overheated for a while. In other areas such as Manchester
:15:56. > :16:00.they've been rising sharply, up 8% and West Brom up 9%. There are
:16:01. > :16:02.regional variations but the trend is more properties on the market,
:16:03. > :16:13.that's keep ago lid on rents. VO, you have a great weekend. Stay
:16:14. > :16:21.watching. You're definitely a redhead. We have a little snippet
:16:22. > :16:25.about Lada coming up next. If you invested in one of those a few years
:16:26. > :16:32.ago, you might be making some money, I think. Don't give the story we!
:16:33. > :16:43.Cheeky man! Out there he! He's still there, he's still smiling. Have a
:16:44. > :16:50.great weekend,. -- CEO. There is a lot of reaction to the military
:16:51. > :16:53.strike on Syria. We have got EU regulators due to announce later
:16:54. > :16:59.they are going to give the green light to the 21st-century Fox $1
:17:00. > :17:02.billion takeover of the UK broadcaster Sky. We will keep across
:17:03. > :17:20.that story. China's President Xi Jinping has
:17:21. > :17:24.urged cooperation with the United States on investment, infrastructure
:17:25. > :17:28.and energy when his first meeting with President Trump. It has been
:17:29. > :17:30.overshadowed by the US air strikes on Syria. We will keep across that.
:17:31. > :17:36.A quick look at how markets are faring....
:17:37. > :17:51.Investors are very cautious. We have seen the safe havens like gold and
:17:52. > :17:56.bombs have gone up. -- gold and bonds. A muted, soft opening across
:17:57. > :17:57.Europe. And now let's get the inside track
:17:58. > :18:00.on this week's tech stories with our We have had a busy week with tech
:18:01. > :18:06.stories. Fake news and Tesla. Let's start off with Facebook's
:18:07. > :18:09.announcement that it's going to step up its attempts to combat fake
:18:10. > :18:17.news. Ever since the election last year in
:18:18. > :18:21.America, Facebook has been under huge pressure about its role in
:18:22. > :18:26.spreading fake news. First of all it said, I don't think this is really a
:18:27. > :18:29.big deal, they underplayed it, then it has rapidly changed tack and
:18:30. > :18:33.said, we are going to have a whole series of actions against it. Today
:18:34. > :18:37.it has launched what it calls an educational tool across 14
:18:38. > :18:45.countries. If you have got Facebook in 14 countries you will see this
:18:46. > :18:48.advert for a guide to how to spot what they call false news. It has
:18:49. > :18:52.got ten points in it, ten tips. Really they are kind of quite
:18:53. > :18:56.sensible things. It's almost a guide to basic journalism, check out the
:18:57. > :19:01.sources, look at the evidence, I rather like this one, look at. Lynn,
:19:02. > :19:07.shocking headlines. Well, we are all going to have to be careful with our
:19:08. > :19:12.headlines. I also like the fact that they say, make sure what you are
:19:13. > :19:14.looking that isn't just a joke. Sometimes people see satirical
:19:15. > :19:20.websites and take them seriously. The point is, they are under
:19:21. > :19:23.pressure to stop the flow of this fake information from which people
:19:24. > :19:28.are actually making a lot of money. Some of it is driven by politics,
:19:29. > :19:32.obviously. A lot of it is to buy operation set up thinking, we can
:19:33. > :19:36.make money, because people clicked on this stuff, we advertise against
:19:37. > :19:40.it and make money from the advertising. A lot of people talk
:19:41. > :19:48.about the imagination... That story, the value. In less than 24 hours,
:19:49. > :19:54.you can imagine a British company was valued at 1700 million dollars,
:19:55. > :20:00.banged down to $250 million, a small country almost entirely dependent on
:20:01. > :20:05.the biggest company in the world, Apple. It provides graphic chips for
:20:06. > :20:09.Apple. Apple announces a big move worried is going to make its own
:20:10. > :20:13.chips and it is not going to need little old imagination technology
:20:14. > :20:20.any more. And the shares absolutely plummeted. They fell 60%, 70%. Next
:20:21. > :20:23.day, they recovered a bit because it is now sort of speculation that
:20:24. > :20:29.obviously there will be a buyout target, and maybe they will be able
:20:30. > :20:35.to do some deal with Apple which still needs a lot of technology, and
:20:36. > :20:39.is hiring people, it has hired a lot of the imagination technology staff.
:20:40. > :20:43.It needs to ramp up its chip production. Apple, the other half of
:20:44. > :20:47.the story, becoming a big player in making its own chips, making
:20:48. > :20:51.everything from the chips to obviously the phones, to the
:20:52. > :21:00.software that runs on them. Powerful integrated technology company. We
:21:01. > :21:07.have got ten seconds. Often tech companies are accused of being
:21:08. > :21:11.overvalued. In this case, Tesla,... Wow, Tesla. Fantastically
:21:12. > :21:16.interesting company, electric car company owned by Elon musk, made
:21:17. > :21:20.80,000 cars last year, now worth more than Ford, which made quite a
:21:21. > :21:27.few more, many millions more. In terms of car production. It is being
:21:28. > :21:33.valued as a silicon valley company, not as a car company. Interesting.
:21:34. > :21:35.Rory, have a great weekend. Always a pleasure. We went from Tesla cars,
:21:36. > :21:37.what about this one... Picture a classic car,
:21:38. > :21:39.chances are it's something very fast and very expensive -
:21:40. > :21:41.a bright red Ferrari perhaps, or a sleek shiny Porsche.
:21:42. > :21:44.But whilst the glamorous end of the vintage market
:21:45. > :21:46.grabs the headlines, some rather more modest models can
:21:47. > :21:48.make a handsome return for savvy collectors.
:21:49. > :21:52.One such specimen is a bog-standard And if you had picked
:21:53. > :21:59.one up ten years ago, you could be sitting on a 4000%
:22:00. > :22:05.profit. My name's Ed Hughes,
:22:06. > :22:08.I'm a technology teacher turned I have a collection of Ladas
:22:09. > :22:13.and other Eastern European So, this is my 1994 Lada
:22:14. > :22:21.105, or a Riva 1500 And I've had it probably
:22:22. > :22:31.about 13-14 years. It was given to me by a chap
:22:32. > :22:41.who basically said his wife had told him that either it went
:22:42. > :22:49.or the husband went! So he sold it to me for about ?50,
:22:50. > :22:52.or $65, thereabouts. It's probably worth
:22:53. > :22:55.about ?2000, $2500. It's provided reliable transport
:22:56. > :23:01.for me for many years. In the meanwhile, I've got more
:23:02. > :23:03.and more of these things, which perhaps wasn't quite
:23:04. > :23:06.so sensible in retrospect. Now, if somebody offered me let's
:23:07. > :23:08.say a Ferrari in exchange for my whole collection of cars,
:23:09. > :23:15.I probably wouldn't accept, because I think it's very easy,
:23:16. > :23:19.anybody with a big enough cheque-book can own a car like
:23:20. > :23:26.a Ferrari or something like that. But it requires a bit more skill,
:23:27. > :23:30.a bit more care and so on, to own a collection of motoring's
:23:31. > :23:45.less loved specimens. Wow! I want one of those now! What
:23:46. > :23:54.do you call a Lada with a sunroof? A skip! This is really interesting.
:23:55. > :24:04.Norwegian sovereign Wealth fund has come at and said that the system of
:24:05. > :24:08.executive pay is pretty much flawed. A lot of thinking is going into
:24:09. > :24:12.executive pay, not only by the Norwegians but by institutions like
:24:13. > :24:20.ourselves trying to find schemes that are long-term, transparent,
:24:21. > :24:23.simple, but also reflect the efforts of senior directors on boards and to
:24:24. > :24:27.get the right figure and the right structure. It's not straightforward.
:24:28. > :24:32.This is obviously an interesting angle from the Norwegian state oil
:24:33. > :24:35.company. But many other institutions, not least ourselves,
:24:36. > :24:39.also thinking this way about the best structures to put in place. It
:24:40. > :24:43.comes just after BP quite dramatically cut the pay packet for
:24:44. > :24:48.its boss. There was a huge vote against that BP package last year.
:24:49. > :24:52.But when you see the extent to which institutions like ourselves are
:24:53. > :24:56.voting against these executive pay deals and are working extremely hard
:24:57. > :24:59.to produce the right pay deals that suits us as shareholders, but also
:25:00. > :25:03.suits the many others that or interested in these areas as well, I
:25:04. > :25:07.think you'd be surprised. Were going to move onto stinky milk. I didn't
:25:08. > :25:13.realise this, the Norwegian sovereign wealth fund is $900
:25:14. > :25:17.billion, but on average it owns 1.3% of every listed company in the
:25:18. > :25:22.world. It has been a fabulous save of their assets over the years, and
:25:23. > :25:29.that is the result that they have got. I think the milk is likely off!
:25:30. > :25:34.That's how you do it, you smell it. Scientists at Trinity College Dublin
:25:35. > :25:37.are using nanotechnology in order to try and build a chip that can send
:25:38. > :25:41.us a message to our telephones that will tell us when the milk is off,
:25:42. > :25:46.so when we are sitting on the train on the way home, the phone will go,
:25:47. > :25:54.the milk is off, pop into the shop on the way home, job done, there you
:25:55. > :25:57.go. A useful direction for their efforts! Have a great weekend,
:25:58. > :25:58.Richard Dunbar, thank you very much. Wrap it up!
:25:59. > :26:03.There will be more business news throughout the day on the BBC Live
:26:04. > :26:05.web page and on World Business Report.