18/04/2017 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Thompson.


After President Trump dumped a key trade deal with Asia -


the Vice President begins a visit to the country to drum up trade -


Live from London, that's our top story on Tuesday 18th April.


The Americans have also accused Japan of currency manipulation.


So what are the odds of the two sides achieving a trade deal?


for the US financial sector as Bank of America and Goldman Sachs


Could a computer come up with the next big


We'll meet the man who's using Artificial Intelligence


to try to bush back the boundaries of medical science.


And as Weetabix fails to take off in China,


its Chinese owner puts the company up for sale.


So today, we want to know, what gets you going in a morning?


What's YOUR breakfast wherever in the world


Of course it has to be a full English! Send in your comments.


In the last few hours, the US Vice President Mike Pence has


touched down in Tokyo where he's meeting with the Japanese Prime


In recent weeks, President Trump appears to have softened his stance


on trade after taking aim at some of the world's biggest exporters


In the case of Japan it has been accused


of manipulating its currency for trade advantage -something


And the Trump administration is hoping to reverse


the trade deficit between the two nations - which last year stood


When it comes to their trade relationship


the car industry is key, Japan currently exports


more than a million cars to the U.S every year.


while the US only sells around 10,000


That is something Trump wants to change.


And his administration is keen to strike what it calls


a "balanced and fair " trade agreement with Japan which has been


given added urgency by America's decision to withdraw


from the Trans-Pacific Partnership trade deal.


Souteast Asia Analyst at the geopolitical


Taking it back to basics what is interesting, after President Trump


threw out the TTP, the transpacific partnership deal, that was designed


to boost trade, he said, we don't want that, but we will try to drum


up a trade deal independently, what is at stake? It is important to bear


in mind that Japan relies upon the United States for its leading export


market. There is a lot of impetus behind having deal, it has been


scrapped, the United States out of it, United States want to find the


next thing that is coming, will they try to salvage some form of the TTP,


that question has been raised, but in the United States case, the


question here is how can they keep trading with an important trading


partner but at the same time deal with domestic political issues which


the Trump administration have raised. Japan has a massive trade


surplus with the United States, we know that, that has angered a lot of


Americans, when it came to that deal, they said, this isn't fair.


There's anything really change in the short-term? The disease ET think


that Japan sells cars to America, what does America sell to Japan or


Southeast Asia? The thing to bear in mind is that these are huge


investment sites, and the United States is sending some pretty strong


signals with this visit to the vice president, showing that they want to


try to save the racing chip, they must be very careful how they


balance the domestic side and the investment side, if you


rhetoric coming out of the rhetoric coming out of the


administration, what we see is a softening, we are seeing questions


about whether you see inflation going on but also, how do we go


ahead and trade better? And you can look at how the Trump administration


figures in other countries in the region, and the point there is,


prospects for some kind of deal coming out of it which would protect


the quiche constituencies are quite strong, it is a question of balance.


-- protect the key constituencies. I want a deal which will favour the


United States but you will have a deal with Japan that you need to


work with. Really briefly, rest of the region, Southeast Asia, what is


the view of other countries there are, Japan, just a part of that.


There are news specifically, they want to make sure that the ban is


strong and Japanese investment keeps flowing, Japan investing a huge


amount in infrastructure in the region, billions of dollars but into


that and the US could have a role to play there. What they want to do is


to try to salvage something of a regional deal, bear in mind only


four Southeast Asian countries were in the transpacific partnership, so


what the question is is what will be negotiated next. That has a role for


China and Japan. It'll be interesting to see how that plans


out. Thank you very much for explaining all of that for us.


You can't go far without tipping in New York, and it seems


Proposals have been put forward by regulators to force all cab


companies that take payment via credit card to offer


Rival services such as Lyft already offer a similar service but Uber has


Two Easyjet passengers were removed from an overbooked flight and not


offered compensation a day after a United Airlines passenger


The airline failed to tell the passengers who were removed,


that they were entitled to an alternative flight


on the same day with another carrier or compensation.


Easyjet has apologised and blamed human error.


Let's have a look at some of the stories on the business live page. A


lot on there, easy week for economic data to ward the end of the week, a


lot of PMI data, we will be talking about that as the week goes on. It


debate about shareholder revolt when debate about shareholder revolt when


it comes to pay, we will talk about this later with the markets guest


but on the business live page, our shareholders limbering up on bosses


pay? They have been talking about that on five live. -- are


shareholders. We may see some response as far as pay for top


bosses is concerned, familiar theme. What is your favourite breakfast?


Porridge. Not a full English. Finley properly in the UK, Weetabix, it


could be sold to a US company, after reports that Chinese owners want to


off-load it. -- extremely popular in the UK. Interesting story, Chinese


owners bought the company they said, dude market in China that we could


sell this to, and it has not work as they planned. I guess the Chinese


consumers are a little bit like you, they want a hot breakfast, not a


cold one, really, China's bright foods own Weetabix, one of the best


have confirmed it will be gobbled up have confirmed it will be gobbled up


by US firm post holdings for 1.8 billion dollars, it has been made in


the UK. They are as is is the largest at the time, they have


struggled to build a big market share in China, as I mentioned,


Chinese consumers are a big fan of hot breakfasts, they prefer hot rice


-based breakfast. Weetabix Double their sales, but the UK accounts for


the majority of their business, what we know about is that they are


third-largest brand, holding golden crisp. -- what we know about Post


Holdings. I have fruit for breakfast, and yoghurt. I am so


surrounded by healthy people, I bet you go for a run as well! A full


English with rice, my hot breakfast repertoire is getting larger by the


minute. Markets in Asia, this is how things went, Japan up by one third


of a percent, it seems people have decided that the risk element is


fading a little when it comes to the geopolitics in the region of Asia,


North Korea very much on the minds of investors globally, Hong Kong


down by over 1%, overnight on Wall Street, we saw most of the main


markets up. Helping Asia. Wall Street, thin trading on Monday,


shorter day than normal because of the Easter weekend. This is Europe,


first, a look ahead to the big earning stories in banking. Last


week, both JP Morgan Chase and Citigroup reported earnings and on


Tuesday we will hear from Bank of America and Goldman Sachs. Two


things that will boost the earnings for Bank of America, stronger


trading, because of the record highs seen on US markets, and the higher


interest rates means that the banks will have made more money from


linking. Oldman sacks will also see a boost to their earnings, because


of strong bond trading and investment banking. Really, what


investors will want to hear from both banks is an update on any


changes to banking rules. -- Goldman Sachs. The election of President


Trump showed a rally, on the expectation that he would roll back


some of the rules known as. Frank but recently, bank stocks have been


pulling back, after not being able to repeal and replace Obamacare,


there are worries that some of the promises made by the Trump


STUDIO: Picking up on some of the happening. -- Dodd?Frank.


STUDIO: Picking up on some of the things we had there, but talking


about the relative calm, talking about the weekend, markets not too


concerned about events as far as career is concerned, what is your


take on what they have made of it so far? Element of relief, the rhetoric


had got worse, the South Korean market did not blink, maybe they are


farm or used to this nonstop noise from North Korea. With complex in


his muscles, there was a bit of us not really expecting potential


conflict. -- Trump flexing his muscles. There was a certain amount


of calm and a few moments as we got over the Easter weekend. Calm, but


also frustration taking in as was hinted, when it comes to the other


stuff we want to see Trump doing, tax reform, reducing regulation on


the banking sector, still nothing. Such an interesting point, why do we


have this big bounce in market, after Trump got in, when people were


fearful, it was because he was going to get out and do stuff and what


became important and became a focus of helping the US economy


infrastructure spend and the big US corporate tax cut, he has failed at


health care, and the suggestion is, they are now already talking about


delays in the US tax cut, his own party are preventing this, they want


to see it funded. The longer this becomes a delay the bigger it


becomes an issue, Google want to see action, they want to see the


infrastructure investment in the states. Don't have to be a scientist


to realise when you go there, they desperately need it. -- people want


to see action. We will get inflation later in the week, this is a global


problem, prices rising, wages not keeping up, firms seeing input


prices rising sharply, what do we expect? One data point may not show


it but absolutely spot on, what we are seeing across the world is


inflationary pressures rising, partly due to the end of


quantitative easing, we have seen inflation creeping out since the Fed


stopped that programme, but look at basic quality like leather, things


like that, they are rising at a steady, this feeds through to


everyday materials, all across the world, not just the UK, we have got


inflation problem due to the weaker currency after "Brexit", and I


expect that you will see this continuously move throughout the


year, and unless wages start to move up as you are suggesting, we will


see a global consumer income squeeze hitting. One that will affect all of


us at some point. Breakfast of choice, before you go? I do


sometimes have the other Weetabix brand, Alpen. Muesli! Well. All very


healthy, except for May! First, before we discuss that, let's


talk about something poignant in the UK.


Credit checks should NOT be carried out when people


are shopping around for a loan - that's according to the TSB.


The bank says nearly two thirds of providers carry out such checks,


but they can affect a borrower'S credit history and increase


the cost of the loan - through higher interest charges.


Paul Pester is the chief executive of TSB.


Just explain this. Many would say it is standard, you apply for credit


and you would face a credit check. Absolutely not. This is part of a


series of underhand tactics the industry uses we think to rip-off


consumers to the tune of ?400 million a year. Why is it an issue?


If a customer tries to shop for a better loan rate they might ask a


provider for a rate and another provider for a rate and they are


only asking for a price, not applying for a loan and the loan


providers mark the credit file of the customer so that after quotes,


they can see the cost of the loan up and we think on average it can


increase the cost by two percentage points, that is ?400 of extra


interest the customer does not need to pay and it is an underhand tactic


we would like to see an end to soon. Is it important in the process of


trying to find a loan, they do somewhere along the line,


affordability and the fact you can pay it back is assessed?


It is vital to check a customer's ability to repay. That is helping


customers to borrow well but there is a subtle and important difference


between looking at a credit file as leaving a footprint on the file,


effectively because I am asking a price. My file is marked as if I


have taken out the loan. If I want a ?5,000 loan it looks like I am


racking up loans, which is why the rate goes up. Which is not


necessary. I am told we are out of time which is a shame. But there is


detail on the website. The chief executive of TSP, and cued. More


detail on the website. One other story on the tablet, the finance


chief on fLYBE. On the business live page.


You're watching Business Live - our top story - the US vice


He'll be pressing the case for a bilateral trade


We will keep you posted. A big holiday for most European markets


and this is how they open today. Now, we all rely on medicines


at one time or another - whether it's to deal


with an irritating cough That's why medical


innovation is so important - our lives could literally


depend on it. Our next guest is using artificial


intelligence to push back through masses of data at the blink


of an eye. The company says the computer makes


connections and discoveries it would take scientists many


lifetimes to come up with. The company was formed in the UK


in 2013 and since then In fact it's now the largest


Artificial Intelligence It has struck licence agreements


with some of the world's biggest BenevolentAI is working on more


effective treatments for diseases Maybe it can fix the fact I am not


speaking well this morning! Joining us is Kenneth Mulvany -


he is the co-founder Pretty comprehensive run-through of


what you do but I am interested in hearing from yourselves. If someone


says what do you do, how do you describe it? You can imagine that a


lot of research has gone into understanding the human body and how


it works. There are a lot of things we have determined along the way,


that are known. But there are unknowns out there. This system


takes all the things that are known and it deduces this should be known


based on what is already known. One way I describe it is you may


remember in chemistry classes you have the periodic table. Years ago


there were big pieces of the table missing. You had characteristics


that you knew, for instance the atomic number, how many electrons it


would have, just the element had not been found. That is what our system


does, finding things that should be known based on what is known. Mixing


computer science, maths, medicine, to try to come up with solutions to


things such as Alzheimer's, multiple sclerosis, neurological diseases.


Where are we with that? When we will we see the results? We have 22


programmes in development. Two we have licensed to a big


pharmaceutical company in the US. The remaining we are developing. The


most advanced is in phase two to treat disease. We are feeling


confident with progress. In terms of the speed it took to get there it is


more condensed. My last company was a biotech. When he says the last


company, he has created and sold 11. 48 years old, a bit of an over


achiever in the studio! The business you have now is valued


at over ?1 billion. It becomes one of the tech unicorns. Is that help


or hindrance when it comes to telling people what you do? People


say you are fine, you are worth this, you do not need our help? One


of the nice things relating in the industry relating to medicine, we do


not have to rely on the hype of technology to demonstrate success.


It is regulated, the European regulators, FTA, require us to prove


the biology and toxicology over and again to ensure it is safe. The


results become somewhat self evident. The things the


pharmaceuticals company understand our underlying product. When it


comes to AI, will this be part of the normal process of finding cure


was in the future? It should do and it is important it does. If you


imagine the amount of new information created every day, in


life sciences alone there are 10,000 new journal publications every day.


It is impossible for any scientist or group of scientists to reach


them, let alone retain the knowledge and have it in a collective place.


What artificial intelligence technology allows is to absorb all


over 200 million variables over 200 million variables


simultaneously in your head. I can hardly hold four. What do you eat


for breakfast? Porridge. We are the same. Bacon and eggs. You


have got in touch about your breakfast options. But this is more


about how to stay in touch. The business Live pages where you


can stay ahead with breaking news and we will keep you up-to-date with


details with insight, analysis, with the BBC editors around the world.


Get involved on the BBC business live web page.


A reminder of one story in business, Weetabix is up for sale, possibly a


US company going to buy the company. Post Holdings is buying it not from


a British company, originally it was an Australian invention and came


here in the 30s and was made in Northamptonshire ever since but in


2012 it was bought by the Chinese who thought they could interest the


Chinese in eating Weetabix for breakfast and they couldn't. We were


speaking to our correspondent in Singapore who gave a lowdown on the


history. A huge population in China, we can sell it here, it is not


working. In 2012 Chinese food companies thought China would switch


to a processed carbohydrate rich diet. It has not worked. Chinese


tastes have lasted centuries. Ryan says my breakfast choices odd. It is


more like dinner. White Castle sliders and mini cheeseburger. He


says an extra six hours of sleep, Gerald, and then lunch.


I am with you, porridge. Weetabix with fruit. Ricky has three


pieces of toast with Worcestershire sauce, tomato and garlic. Is that


really true, are you teasing? We will not read out the tweets that


say they were will have you Breakfast.


Menswear dilemmas. This is a office where. What shade of denim you


should choose. A lot of companies do not have a suit and tie as a common


thing. This is tricky. Black is OK, yellow? And this is funny. What do


you do about the over Botoxed chief executive? Thanks for your company.


We will see you same time tomorrow. Enjoy your breakfast. Goodbye.


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