:00:00. > :00:11.This is Business Live from BBC News with Sally Bundock and Ben Thompson.
:00:12. > :00:15.After President Trump dumped a key trade deal with Asia -
:00:16. > :00:19.the Vice President begins a visit to the country to drum up trade -
:00:20. > :00:43.Live from London, that's our top story on Tuesday 18th April.
:00:44. > :00:45.The Americans have also accused Japan of currency manipulation.
:00:46. > :01:03.So what are the odds of the two sides achieving a trade deal?
:01:04. > :01:10.for the US financial sector as Bank of America and Goldman Sachs
:01:11. > :01:22.Could a computer come up with the next big
:01:23. > :01:25.We'll meet the man who's using Artificial Intelligence
:01:26. > :01:27.to try to bush back the boundaries of medical science.
:01:28. > :01:30.And as Weetabix fails to take off in China,
:01:31. > :01:35.its Chinese owner puts the company up for sale.
:01:36. > :01:39.So today, we want to know, what gets you going in a morning?
:01:40. > :01:40.What's YOUR breakfast wherever in the world
:01:41. > :02:06.Of course it has to be a full English! Send in your comments.
:02:07. > :02:08.In the last few hours, the US Vice President Mike Pence has
:02:09. > :02:11.touched down in Tokyo where he's meeting with the Japanese Prime
:02:12. > :02:15.In recent weeks, President Trump appears to have softened his stance
:02:16. > :02:18.on trade after taking aim at some of the world's biggest exporters
:02:19. > :02:21.In the case of Japan it has been accused
:02:22. > :02:23.of manipulating its currency for trade advantage -something
:02:24. > :02:27.And the Trump administration is hoping to reverse
:02:28. > :02:29.the trade deficit between the two nations - which last year stood
:02:30. > :02:37.When it comes to their trade relationship
:02:38. > :02:40.the car industry is key, Japan currently exports
:02:41. > :02:50.more than a million cars to the U.S every year.
:02:51. > :02:52.while the US only sells around 10,000
:02:53. > :02:56.That is something Trump wants to change.
:02:57. > :02:58.And his administration is keen to strike what it calls
:02:59. > :03:01.a "balanced and fair " trade agreement with Japan which has been
:03:02. > :03:03.given added urgency by America's decision to withdraw
:03:04. > :03:08.from the Trans-Pacific Partnership trade deal.
:03:09. > :03:14.Souteast Asia Analyst at the geopolitical
:03:15. > :03:27.Taking it back to basics what is interesting, after President Trump
:03:28. > :03:32.threw out the TTP, the transpacific partnership deal, that was designed
:03:33. > :03:36.to boost trade, he said, we don't want that, but we will try to drum
:03:37. > :03:45.up a trade deal independently, what is at stake? It is important to bear
:03:46. > :03:53.in mind that Japan relies upon the United States for its leading export
:03:54. > :03:59.market. There is a lot of impetus behind having deal, it has been
:04:00. > :04:04.scrapped, the United States out of it, United States want to find the
:04:05. > :04:08.next thing that is coming, will they try to salvage some form of the TTP,
:04:09. > :04:13.that question has been raised, but in the United States case, the
:04:14. > :04:16.question here is how can they keep trading with an important trading
:04:17. > :04:19.partner but at the same time deal with domestic political issues which
:04:20. > :04:24.the Trump administration have raised. Japan has a massive trade
:04:25. > :04:28.surplus with the United States, we know that, that has angered a lot of
:04:29. > :04:33.Americans, when it came to that deal, they said, this isn't fair.
:04:34. > :04:37.There's anything really change in the short-term? The disease ET think
:04:38. > :04:41.that Japan sells cars to America, what does America sell to Japan or
:04:42. > :04:45.Southeast Asia? The thing to bear in mind is that these are huge
:04:46. > :04:50.investment sites, and the United States is sending some pretty strong
:04:51. > :04:54.signals with this visit to the vice president, showing that they want to
:04:55. > :04:57.try to save the racing chip, they must be very careful how they
:04:58. > :04:59.balance the domestic side and the investment side, if you
:05:00. > :05:03.rhetoric coming out of the rhetoric coming out of the
:05:04. > :05:05.administration, what we see is a softening, we are seeing questions
:05:06. > :05:11.about whether you see inflation going on but also, how do we go
:05:12. > :05:14.ahead and trade better? And you can look at how the Trump administration
:05:15. > :05:18.figures in other countries in the region, and the point there is,
:05:19. > :05:22.prospects for some kind of deal coming out of it which would protect
:05:23. > :05:29.the quiche constituencies are quite strong, it is a question of balance.
:05:30. > :05:32.-- protect the key constituencies. I want a deal which will favour the
:05:33. > :05:36.United States but you will have a deal with Japan that you need to
:05:37. > :05:40.work with. Really briefly, rest of the region, Southeast Asia, what is
:05:41. > :05:44.the view of other countries there are, Japan, just a part of that.
:05:45. > :05:48.There are news specifically, they want to make sure that the ban is
:05:49. > :05:51.strong and Japanese investment keeps flowing, Japan investing a huge
:05:52. > :05:55.amount in infrastructure in the region, billions of dollars but into
:05:56. > :05:59.that and the US could have a role to play there. What they want to do is
:06:00. > :06:03.to try to salvage something of a regional deal, bear in mind only
:06:04. > :06:09.four Southeast Asian countries were in the transpacific partnership, so
:06:10. > :06:13.what the question is is what will be negotiated next. That has a role for
:06:14. > :06:16.China and Japan. It'll be interesting to see how that plans
:06:17. > :06:30.out. Thank you very much for explaining all of that for us.
:06:31. > :06:33.You can't go far without tipping in New York, and it seems
:06:34. > :06:37.Proposals have been put forward by regulators to force all cab
:06:38. > :06:39.companies that take payment via credit card to offer
:06:40. > :06:43.Rival services such as Lyft already offer a similar service but Uber has
:06:44. > :06:47.Two Easyjet passengers were removed from an overbooked flight and not
:06:48. > :06:49.offered compensation a day after a United Airlines passenger
:06:50. > :06:53.The airline failed to tell the passengers who were removed,
:06:54. > :06:55.that they were entitled to an alternative flight
:06:56. > :06:57.on the same day with another carrier or compensation.
:06:58. > :07:07.Easyjet has apologised and blamed human error.
:07:08. > :07:13.Let's have a look at some of the stories on the business live page. A
:07:14. > :07:18.lot on there, easy week for economic data to ward the end of the week, a
:07:19. > :07:21.lot of PMI data, we will be talking about that as the week goes on. It
:07:22. > :07:27.debate about shareholder revolt when debate about shareholder revolt when
:07:28. > :07:31.it comes to pay, we will talk about this later with the markets guest
:07:32. > :07:35.but on the business live page, our shareholders limbering up on bosses
:07:36. > :07:46.pay? They have been talking about that on five live. -- are
:07:47. > :07:54.shareholders. We may see some response as far as pay for top
:07:55. > :08:00.bosses is concerned, familiar theme. What is your favourite breakfast?
:08:01. > :08:06.Porridge. Not a full English. Finley properly in the UK, Weetabix, it
:08:07. > :08:13.could be sold to a US company, after reports that Chinese owners want to
:08:14. > :08:17.off-load it. -- extremely popular in the UK. Interesting story, Chinese
:08:18. > :08:22.owners bought the company they said, dude market in China that we could
:08:23. > :08:27.sell this to, and it has not work as they planned. I guess the Chinese
:08:28. > :08:32.consumers are a little bit like you, they want a hot breakfast, not a
:08:33. > :08:38.cold one, really, China's bright foods own Weetabix, one of the best
:08:39. > :08:43.have confirmed it will be gobbled up have confirmed it will be gobbled up
:08:44. > :08:57.by US firm post holdings for 1.8 billion dollars, it has been made in
:08:58. > :09:01.the UK. They are as is is the largest at the time, they have
:09:02. > :09:07.struggled to build a big market share in China, as I mentioned,
:09:08. > :09:11.Chinese consumers are a big fan of hot breakfasts, they prefer hot rice
:09:12. > :09:17.-based breakfast. Weetabix Double their sales, but the UK accounts for
:09:18. > :09:23.the majority of their business, what we know about is that they are
:09:24. > :09:32.third-largest brand, holding golden crisp. -- what we know about Post
:09:33. > :09:37.Holdings. I have fruit for breakfast, and yoghurt. I am so
:09:38. > :09:45.surrounded by healthy people, I bet you go for a run as well! A full
:09:46. > :09:48.English with rice, my hot breakfast repertoire is getting larger by the
:09:49. > :09:54.minute. Markets in Asia, this is how things went, Japan up by one third
:09:55. > :09:59.of a percent, it seems people have decided that the risk element is
:10:00. > :10:03.fading a little when it comes to the geopolitics in the region of Asia,
:10:04. > :10:08.North Korea very much on the minds of investors globally, Hong Kong
:10:09. > :10:14.down by over 1%, overnight on Wall Street, we saw most of the main
:10:15. > :10:18.markets up. Helping Asia. Wall Street, thin trading on Monday,
:10:19. > :10:25.shorter day than normal because of the Easter weekend. This is Europe,
:10:26. > :10:31.first, a look ahead to the big earning stories in banking. Last
:10:32. > :10:34.week, both JP Morgan Chase and Citigroup reported earnings and on
:10:35. > :10:38.Tuesday we will hear from Bank of America and Goldman Sachs. Two
:10:39. > :10:41.things that will boost the earnings for Bank of America, stronger
:10:42. > :10:46.trading, because of the record highs seen on US markets, and the higher
:10:47. > :10:50.interest rates means that the banks will have made more money from
:10:51. > :10:54.linking. Oldman sacks will also see a boost to their earnings, because
:10:55. > :10:57.of strong bond trading and investment banking. Really, what
:10:58. > :11:04.investors will want to hear from both banks is an update on any
:11:05. > :11:10.changes to banking rules. -- Goldman Sachs. The election of President
:11:11. > :11:14.Trump showed a rally, on the expectation that he would roll back
:11:15. > :11:18.some of the rules known as. Frank but recently, bank stocks have been
:11:19. > :11:23.pulling back, after not being able to repeal and replace Obamacare,
:11:24. > :11:25.there are worries that some of the promises made by the Trump
:11:26. > :11:37.STUDIO: Picking up on some of the happening. -- Dodd?Frank.
:11:38. > :11:41.STUDIO: Picking up on some of the things we had there, but talking
:11:42. > :11:45.about the relative calm, talking about the weekend, markets not too
:11:46. > :11:49.concerned about events as far as career is concerned, what is your
:11:50. > :11:54.take on what they have made of it so far? Element of relief, the rhetoric
:11:55. > :12:01.had got worse, the South Korean market did not blink, maybe they are
:12:02. > :12:06.farm or used to this nonstop noise from North Korea. With complex in
:12:07. > :12:11.his muscles, there was a bit of us not really expecting potential
:12:12. > :12:15.conflict. -- Trump flexing his muscles. There was a certain amount
:12:16. > :12:20.of calm and a few moments as we got over the Easter weekend. Calm, but
:12:21. > :12:24.also frustration taking in as was hinted, when it comes to the other
:12:25. > :12:32.stuff we want to see Trump doing, tax reform, reducing regulation on
:12:33. > :12:35.the banking sector, still nothing. Such an interesting point, why do we
:12:36. > :12:39.have this big bounce in market, after Trump got in, when people were
:12:40. > :12:43.fearful, it was because he was going to get out and do stuff and what
:12:44. > :12:47.became important and became a focus of helping the US economy
:12:48. > :12:52.infrastructure spend and the big US corporate tax cut, he has failed at
:12:53. > :12:56.health care, and the suggestion is, they are now already talking about
:12:57. > :13:00.delays in the US tax cut, his own party are preventing this, they want
:13:01. > :13:04.to see it funded. The longer this becomes a delay the bigger it
:13:05. > :13:07.becomes an issue, Google want to see action, they want to see the
:13:08. > :13:11.infrastructure investment in the states. Don't have to be a scientist
:13:12. > :13:16.to realise when you go there, they desperately need it. -- people want
:13:17. > :13:20.to see action. We will get inflation later in the week, this is a global
:13:21. > :13:27.problem, prices rising, wages not keeping up, firms seeing input
:13:28. > :13:31.prices rising sharply, what do we expect? One data point may not show
:13:32. > :13:34.it but absolutely spot on, what we are seeing across the world is
:13:35. > :13:37.inflationary pressures rising, partly due to the end of
:13:38. > :13:41.quantitative easing, we have seen inflation creeping out since the Fed
:13:42. > :13:47.stopped that programme, but look at basic quality like leather, things
:13:48. > :13:51.like that, they are rising at a steady, this feeds through to
:13:52. > :13:57.everyday materials, all across the world, not just the UK, we have got
:13:58. > :14:00.inflation problem due to the weaker currency after "Brexit", and I
:14:01. > :14:04.expect that you will see this continuously move throughout the
:14:05. > :14:08.year, and unless wages start to move up as you are suggesting, we will
:14:09. > :14:14.see a global consumer income squeeze hitting. One that will affect all of
:14:15. > :14:18.us at some point. Breakfast of choice, before you go? I do
:14:19. > :14:28.sometimes have the other Weetabix brand, Alpen. Muesli! Well. All very
:14:29. > :14:51.healthy, except for May! First, before we discuss that, let's
:14:52. > :14:52.talk about something poignant in the UK.
:14:53. > :14:54.Credit checks should NOT be carried out when people
:14:55. > :14:57.are shopping around for a loan - that's according to the TSB.
:14:58. > :15:01.The bank says nearly two thirds of providers carry out such checks,
:15:02. > :15:03.but they can affect a borrower'S credit history and increase
:15:04. > :15:06.the cost of the loan - through higher interest charges.
:15:07. > :15:14.Paul Pester is the chief executive of TSB.
:15:15. > :15:22.Just explain this. Many would say it is standard, you apply for credit
:15:23. > :15:28.and you would face a credit check. Absolutely not. This is part of a
:15:29. > :15:32.series of underhand tactics the industry uses we think to rip-off
:15:33. > :15:38.consumers to the tune of ?400 million a year. Why is it an issue?
:15:39. > :15:43.If a customer tries to shop for a better loan rate they might ask a
:15:44. > :15:47.provider for a rate and another provider for a rate and they are
:15:48. > :15:51.only asking for a price, not applying for a loan and the loan
:15:52. > :15:57.providers mark the credit file of the customer so that after quotes,
:15:58. > :16:02.they can see the cost of the loan up and we think on average it can
:16:03. > :16:07.increase the cost by two percentage points, that is ?400 of extra
:16:08. > :16:12.interest the customer does not need to pay and it is an underhand tactic
:16:13. > :16:18.we would like to see an end to soon. Is it important in the process of
:16:19. > :16:22.trying to find a loan, they do somewhere along the line,
:16:23. > :16:26.affordability and the fact you can pay it back is assessed?
:16:27. > :16:31.It is vital to check a customer's ability to repay. That is helping
:16:32. > :16:38.customers to borrow well but there is a subtle and important difference
:16:39. > :16:42.between looking at a credit file as leaving a footprint on the file,
:16:43. > :16:49.effectively because I am asking a price. My file is marked as if I
:16:50. > :16:53.have taken out the loan. If I want a ?5,000 loan it looks like I am
:16:54. > :16:57.racking up loans, which is why the rate goes up. Which is not
:16:58. > :17:03.necessary. I am told we are out of time which is a shame. But there is
:17:04. > :17:08.detail on the website. The chief executive of TSP, and cued. More
:17:09. > :17:20.detail on the website. One other story on the tablet, the finance
:17:21. > :17:25.chief on fLYBE. On the business live page.
:17:26. > :17:28.You're watching Business Live - our top story - the US vice
:17:29. > :17:36.He'll be pressing the case for a bilateral trade
:17:37. > :17:47.We will keep you posted. A big holiday for most European markets
:17:48. > :17:53.and this is how they open today. Now, we all rely on medicines
:17:54. > :18:00.at one time or another - whether it's to deal
:18:01. > :18:02.with an irritating cough That's why medical
:18:03. > :18:05.innovation is so important - our lives could literally
:18:06. > :18:06.depend on it. Our next guest is using artificial
:18:07. > :18:09.intelligence to push back through masses of data at the blink
:18:10. > :18:22.of an eye. The company says the computer makes
:18:23. > :18:25.connections and discoveries it would take scientists many
:18:26. > :18:28.lifetimes to come up with. The company was formed in the UK
:18:29. > :18:31.in 2013 and since then In fact it's now the largest
:18:32. > :18:34.Artificial Intelligence It has struck licence agreements
:18:35. > :18:41.with some of the world's biggest BenevolentAI is working on more
:18:42. > :18:46.effective treatments for diseases Maybe it can fix the fact I am not
:18:47. > :18:57.speaking well this morning! Joining us is Kenneth Mulvany -
:18:58. > :19:09.he is the co-founder Pretty comprehensive run-through of
:19:10. > :19:13.what you do but I am interested in hearing from yourselves. If someone
:19:14. > :19:18.says what do you do, how do you describe it? You can imagine that a
:19:19. > :19:24.lot of research has gone into understanding the human body and how
:19:25. > :19:29.it works. There are a lot of things we have determined along the way,
:19:30. > :19:35.that are known. But there are unknowns out there. This system
:19:36. > :19:40.takes all the things that are known and it deduces this should be known
:19:41. > :19:49.based on what is already known. One way I describe it is you may
:19:50. > :19:53.remember in chemistry classes you have the periodic table. Years ago
:19:54. > :19:59.there were big pieces of the table missing. You had characteristics
:20:00. > :20:02.that you knew, for instance the atomic number, how many electrons it
:20:03. > :20:08.would have, just the element had not been found. That is what our system
:20:09. > :20:13.does, finding things that should be known based on what is known. Mixing
:20:14. > :20:20.computer science, maths, medicine, to try to come up with solutions to
:20:21. > :20:24.things such as Alzheimer's, multiple sclerosis, neurological diseases.
:20:25. > :20:30.Where are we with that? When we will we see the results? We have 22
:20:31. > :20:37.programmes in development. Two we have licensed to a big
:20:38. > :20:43.pharmaceutical company in the US. The remaining we are developing. The
:20:44. > :20:48.most advanced is in phase two to treat disease. We are feeling
:20:49. > :20:53.confident with progress. In terms of the speed it took to get there it is
:20:54. > :21:01.more condensed. My last company was a biotech. When he says the last
:21:02. > :21:05.company, he has created and sold 11. 48 years old, a bit of an over
:21:06. > :21:11.achiever in the studio! The business you have now is valued
:21:12. > :21:15.at over ?1 billion. It becomes one of the tech unicorns. Is that help
:21:16. > :21:20.or hindrance when it comes to telling people what you do? People
:21:21. > :21:26.say you are fine, you are worth this, you do not need our help? One
:21:27. > :21:31.of the nice things relating in the industry relating to medicine, we do
:21:32. > :21:38.not have to rely on the hype of technology to demonstrate success.
:21:39. > :21:43.It is regulated, the European regulators, FTA, require us to prove
:21:44. > :21:47.the biology and toxicology over and again to ensure it is safe. The
:21:48. > :21:57.results become somewhat self evident. The things the
:21:58. > :22:04.pharmaceuticals company understand our underlying product. When it
:22:05. > :22:08.comes to AI, will this be part of the normal process of finding cure
:22:09. > :22:15.was in the future? It should do and it is important it does. If you
:22:16. > :22:21.imagine the amount of new information created every day, in
:22:22. > :22:27.life sciences alone there are 10,000 new journal publications every day.
:22:28. > :22:31.It is impossible for any scientist or group of scientists to reach
:22:32. > :22:37.them, let alone retain the knowledge and have it in a collective place.
:22:38. > :22:45.What artificial intelligence technology allows is to absorb all
:22:46. > :22:48.over 200 million variables over 200 million variables
:22:49. > :22:54.simultaneously in your head. I can hardly hold four. What do you eat
:22:55. > :23:01.for breakfast? Porridge. We are the same. Bacon and eggs. You
:23:02. > :23:10.have got in touch about your breakfast options. But this is more
:23:11. > :23:14.about how to stay in touch. The business Live pages where you
:23:15. > :23:19.can stay ahead with breaking news and we will keep you up-to-date with
:23:20. > :23:25.details with insight, analysis, with the BBC editors around the world.
:23:26. > :23:42.Get involved on the BBC business live web page.
:23:43. > :23:55.A reminder of one story in business, Weetabix is up for sale, possibly a
:23:56. > :24:00.US company going to buy the company. Post Holdings is buying it not from
:24:01. > :24:03.a British company, originally it was an Australian invention and came
:24:04. > :24:08.here in the 30s and was made in Northamptonshire ever since but in
:24:09. > :24:11.2012 it was bought by the Chinese who thought they could interest the
:24:12. > :24:17.Chinese in eating Weetabix for breakfast and they couldn't. We were
:24:18. > :24:22.speaking to our correspondent in Singapore who gave a lowdown on the
:24:23. > :24:28.history. A huge population in China, we can sell it here, it is not
:24:29. > :24:33.working. In 2012 Chinese food companies thought China would switch
:24:34. > :24:41.to a processed carbohydrate rich diet. It has not worked. Chinese
:24:42. > :24:46.tastes have lasted centuries. Ryan says my breakfast choices odd. It is
:24:47. > :24:55.more like dinner. White Castle sliders and mini cheeseburger. He
:24:56. > :25:02.says an extra six hours of sleep, Gerald, and then lunch.
:25:03. > :25:07.I am with you, porridge. Weetabix with fruit. Ricky has three
:25:08. > :25:13.pieces of toast with Worcestershire sauce, tomato and garlic. Is that
:25:14. > :25:19.really true, are you teasing? We will not read out the tweets that
:25:20. > :25:25.say they were will have you Breakfast.
:25:26. > :25:32.Menswear dilemmas. This is a office where. What shade of denim you
:25:33. > :25:37.should choose. A lot of companies do not have a suit and tie as a common
:25:38. > :25:51.thing. This is tricky. Black is OK, yellow? And this is funny. What do
:25:52. > :25:57.you do about the over Botoxed chief executive? Thanks for your company.
:25:58. > :26:02.We will see you same time tomorrow. Enjoy your breakfast. Goodbye.