:00:00. > :00:00.This is Business Live from BBC News with Aaron
:00:07. > :00:14.He's promising a big announcement on taxes today.
:00:15. > :00:16.But can President Trump really make good on his ambitious
:00:17. > :00:39.Live from London, that's our top story on Wednesday, 26th April.
:00:40. > :00:44.Mr Trump has promised a "phenomenal" tax plan.
:00:45. > :00:47.He'll unveil the details in just a few hours time.
:00:48. > :00:50.Also in the programme, paying the price for regional
:00:51. > :00:56.The South Korean carmaker Hyundai sees profits plunge as sales
:00:57. > :01:07.And as always we'll take you through the markets,
:01:08. > :01:09.but right now, investors focused on just two things -
:01:10. > :01:11.Trump's tax cuts and those French elections.
:01:12. > :01:13.Riding the wave of the foodie revolution.
:01:14. > :01:15.Celebrity chef Mark Hix will be with us to talk, food,
:01:16. > :01:19.Today, we want to know is cash your king?
:01:20. > :01:22.A survey says a third of us would rather pay digitally,
:01:23. > :01:24.do you still carry cash or is contactless the future?
:01:25. > :01:40.Let us know. Just use the hashtag BBCBizLive.
:01:41. > :01:45.Cash, Rachel. Always carry that with you. I shouldn't say that. I don't
:01:46. > :01:48.have any cash on me! Shaking up the tax system
:01:49. > :01:51.has been a major theme Today he's promising what he
:01:52. > :01:55.describes as "a big announcement" In fact, Mr Trump has already said
:01:56. > :02:07.he's planning what he's called "maybe the biggest tax
:02:08. > :02:09.cut we've ever had". During the campaign
:02:10. > :02:14.he talked about cutting the top individual tax rate
:02:15. > :02:16.from 36.9% to 25%. In terms of business,
:02:17. > :02:20.he wants to cut the corporate tax Mr Trump has also proposed charging
:02:21. > :02:37.American firms a one-off tax of just 10% on money they bring back
:02:38. > :02:50.to the US from overseas. He has also pledged to simplify
:02:51. > :02:53.the overall tax system. But can he turn all
:02:54. > :02:59.this into legislation? After all, he's failed to deliver
:03:00. > :03:02.on other key policy objectives, like health care reform
:03:03. > :03:06.and an extensive travel ban. Arnab Das, Head of Emerging
:03:07. > :03:17.Markets Macro Research, Thank you very much for coming in
:03:18. > :03:21.this morning. I guess the first question is, can America afford this
:03:22. > :03:26.tax cut? Well, I think that's the key question, right. How are they
:03:27. > :03:29.going to pay for this massive great tax cut in the corporate tax rate in
:03:30. > :03:34.particular. I think if we step back, you have a lot of actors, most of
:03:35. > :03:37.them agree that there needs to be tax reform. Nobody really agrees on
:03:38. > :03:42.how they're going to do it. Nor how they're going to finance it, how to
:03:43. > :03:46.fund this massive tax cut. That's where the rubber is going to meet
:03:47. > :03:50.the road and that's where we're going to see a lot of give-and-take.
:03:51. > :03:54.We will probably end up with a moderate tax cut rather than a big
:03:55. > :03:58.picture, big package comprehensive tax reform through the negotiation
:03:59. > :04:05.process. Everybody agrees there needs to be some sort of tax reform.
:04:06. > :04:09.What that tax reform is hopefully we will find out over the coming days
:04:10. > :04:14.and weeks. Who is going to benefit? Will it the be the wealthy elite,
:04:15. > :04:18.the big corporations? I'm assuming this needs to be about the whole
:04:19. > :04:21.economy? That's the president's plan and the administration's desire is
:04:22. > :04:27.to, you know, jump start investment and thereby create a lot of jobs and
:04:28. > :04:32.invest in America, hire American and buy American. I think in the end we
:04:33. > :04:36.are in a much more interlinked economy than all of that. So I think
:04:37. > :04:40.probably a mix of things will happen and some money will be coming back
:04:41. > :04:44.on shore. Some money is going to be invested. Some of it is going to go
:04:45. > :04:47.to shareholders. Some of it will go to shareholders generally across the
:04:48. > :04:51.economy. Some of it will go to the elite and some of it will be
:04:52. > :04:57.invested in the rest of the world. You say some of it is going back to
:04:58. > :04:59.the showeders. If we talk about the repatriation, there is billions
:05:00. > :05:03.sitting off-shore, but they have done this once before, 2004 and
:05:04. > :05:09.Fife, back then, it was $250 billion, I was talking to an expert
:05:10. > :05:15.this morning, who said, a study showed that back then, 96 cents out
:05:16. > :05:20.of every $1 that came back to America ended up in the pockets of
:05:21. > :05:23.the investors or share buy backs. It didn't go out into the economy for
:05:24. > :05:31.infrastructure or things like that? No, that's right. Part of the logic
:05:32. > :05:36.of President Trump's plan is to do a comprehensive tax reform and make it
:05:37. > :05:43.permanent. Also to deregulate the economy and make the US much more
:05:44. > :05:47.attractive as a place to invest. That's the idea that they're aiming
:05:48. > :05:52.for. Some of this will come through. I think on the amounts of money and
:05:53. > :05:58.how much will go to shareholders, it is hard to tell at this stage. We
:05:59. > :06:02.are looking at 2.5 to $3 trillion that's held off-shorement some
:06:03. > :06:05.estimates suggest if it is a good tax reform and it's permanent you
:06:06. > :06:08.can see something like $1 trillion coming back on shore. How much of
:06:09. > :06:11.that will be invested rather than paid out to shareholders? Well, that
:06:12. > :06:16.depends on deregulation and a host of other things. I think it is early
:06:17. > :06:17.days yet. Yeah, it is. I'm sure we'll keep talking about it for a
:06:18. > :06:21.long time. Thank you very much. Let's take a look at some of
:06:22. > :06:24.the other stories making the news. Singapore has retained its crown
:06:25. > :06:31.as the maritime capital of the world, according
:06:32. > :06:33.to a respected bi-annual ranking. The Asian city topped the tables
:06:34. > :06:37.followed by Hamburg, Oslo, Shanghai and London,
:06:38. > :06:39.according to the International Shares in McDonalds jumped
:06:40. > :06:47.by more than 5% in US trade after the fast food giant reported
:06:48. > :06:55.better than expected figures for the first three
:06:56. > :06:57.months of this year. Maccy Dee's pocketed
:06:58. > :07:00.a profit of $1.2 billion. That's an increase of 8% compared
:07:01. > :07:03.to same period a year ago. The 60-year-old chain has undergone
:07:04. > :07:05.a revamp, slashing costs, shutting down outlets that weren't
:07:06. > :07:10.performing, and introducing The US firm Coca-Cola has said it
:07:11. > :07:16.will cut about 1,200 jobs due to falling demand
:07:17. > :07:18.for its fizzy drinks. Its global drink sales fell 1%
:07:19. > :07:24.in the quarter to 31st March. The bulk of the redundancies will be
:07:25. > :07:27.in Atlanta where it has The firm has more than 100,000
:07:28. > :07:51.employees around the world. Guess what, Aaron? We're still
:07:52. > :08:03.buying cars! We're going to talk about Hyundai in
:08:04. > :08:12.a minute. This is record sales in the first quarter for Daimler!
:08:13. > :08:14.I was going to talk about this drink that I have no idea about, but you
:08:15. > :08:18.do? Vinto. South Korea's Hyundai Motor posts
:08:19. > :08:20.a 21% fall in first quarter profit South Korean car maker Hyundai has
:08:21. > :08:30.seen regional tensions take a big Leisha Chi is in our
:08:31. > :08:36.Asia Business Hub. China wants to, I guess, show its
:08:37. > :08:41.might, you got problems as a car maker. You've got problems if you've
:08:42. > :08:46.got problems with China so to speak. Exactly, Aaron. China is flexing its
:08:47. > :08:53.muscle and it hurts the bottom line. This is a very good example of how
:08:54. > :08:58.political problems can spill over to affect companies like Hyundai.
:08:59. > :09:03.They've reported a 21% drop in quarterly profit. They are rating $1
:09:04. > :09:06.billion. This is due to a costly recall in the US over defective
:09:07. > :09:12.engines, but the main reason is due to these political tensions with
:09:13. > :09:16.China, its biggest market. It stems from this controversial US missile
:09:17. > :09:20.defence system called Thud. As we have been reporting today, Korea is
:09:21. > :09:25.hosting this defence system, but China opposes it and as a result we
:09:26. > :09:30.have seen consumers shunning the brand and even allegedly defacing
:09:31. > :09:35.cars this year because of anger over the issue. Wow. That's great. I've
:09:36. > :09:38.got my teeth in. Thank you for that update.
:09:39. > :09:44.I'm going to stay with the markets though.
:09:45. > :09:48.Asian stocks continued gaining for the fifth straight day in fact.
:09:49. > :09:52.Wall Street is up and continues to be up.
:09:53. > :09:58.All of this because of the renewed optimism
:09:59. > :10:03.about the world's biggest economy, the US.
:10:04. > :10:05.And yes, huge hopes for these Trump tax cuts.
:10:06. > :10:09.If we talk about Europe it's a similar story,
:10:10. > :10:13.all eyes looking towards the US, but also the French
:10:14. > :10:15.elections on Sunday, continuing to give the single
:10:16. > :10:25.currency a boost as well as the markets.
:10:26. > :10:32.Let's find out more, here she is, here's Samira.
:10:33. > :10:39.Among the many companies reporting will be Twitter and PayPal.
:10:40. > :10:41.Twitter has been losing advertisers to competition
:10:42. > :10:51.It's trying to use a new formula that will attract both new users
:10:52. > :10:52.and advertisers but until then, Twitter's earnings
:10:53. > :10:59.PayPal has been facing some stiffer competition from start-ups
:11:00. > :11:02.like Venmo, but it's still been able to add more customers and process
:11:03. > :11:07.Now, investors will focus on PayPal's forecasts
:11:08. > :11:09.for the coming quarter and outside of earnings,
:11:10. > :11:12.Congress will be holding a hearing on a bill that would drastically
:11:13. > :11:17.overhaul the way the US government to regulate the financial sector.
:11:18. > :11:21.Specifically, the bill will eliminate a big part of Dodd-Frank,
:11:22. > :11:23.the financial rules put in place by the Obama administration
:11:24. > :11:33.James Hughes, Chief Market Analyst, at GKFX joins us now.
:11:34. > :11:39.Thank you for coming in. No problem. Donald Trump, tax reforms. Yes. How
:11:40. > :11:42.are the markets feeling? Well, we have been waiting long enough for
:11:43. > :11:46.Donald Trump to say something about tax. From a market point of view,
:11:47. > :11:49.that's the only bit we really cared about. We didn't care about the
:11:50. > :11:52.immigration point from a market point of view. The health care,
:11:53. > :11:56.apart from the health care stocks, it didn't give it too much to go on.
:11:57. > :12:00.It's the tax reforms which were going to be the big thing and he has
:12:01. > :12:03.been front running this for a long time that the worry you get is that,
:12:04. > :12:07.there is so much now based on this and put around this that if it
:12:08. > :12:11.disappoints the market we could see an extension that down side that
:12:12. > :12:15.we're already seeing in the markets. We're already seeing the US dollar
:12:16. > :12:19.falling. The US markets in terms of the Dow, the S and P, they have been
:12:20. > :12:23.moving higher. We are in earnings season and that's what helps that to
:12:24. > :12:27.push higher sometimes, but if this is that little bit disappointing in
:12:28. > :12:30.terms of the tax reform and we don't know what he's going to say like
:12:31. > :12:34.anything Donald Trump, we don't know what he's going to say. If that
:12:35. > :12:40.disappoints us, we could see some down side in those US markets and
:12:41. > :12:44.that's the bit that worries us. We put so much impetus into it. And
:12:45. > :12:48.what would disappoint? Just not enough detail. A watered down...
:12:49. > :12:53.Yes. It could be likely. We won't get detail. We know that. We won't
:12:54. > :12:59.get too much detail. He will say I'm going to do the tax reforms. They're
:13:00. > :13:03.going to be massive. There will be numbers. If the numbers aren't as
:13:04. > :13:06.big as we expect them to be which is very much likely to be the case then
:13:07. > :13:11.we see down side in the market because it is another bit of Donald
:13:12. > :13:18.Trump's first 100 day that is disappoints the markets.
:13:19. > :13:22.The French elections. Are the markets - I think the markets are
:13:23. > :13:26.ahead of themselves. Are they ruling out Marine Le Pen? It is like it's a
:13:27. > :13:31.done deal. That's a very, very worrying place to be for the market.
:13:32. > :13:35.The euro rallied strongly because everyone thinks Emmanuel Macron has
:13:36. > :13:39.done it by getting through that first round with Marine Le Pen, but
:13:40. > :13:42.I don't think that's the case. It could well be.
:13:43. > :13:46.James, we will have you back to talk about the papers. And do you carry
:13:47. > :13:49.cash? No. I haven't got any cash, that's why!
:13:50. > :13:55.LAUGHTER He's lying, you know that.
:13:56. > :14:00.I saw him with a wheelbarrow full of it the other day.
:14:01. > :14:05.We have got lots of tweets and can do we have the time now or not?
:14:06. > :14:10.Yeah, OK, thank you. I like to talk to the gallery, that's all. A viewer
:14:11. > :14:17.says, "I pay small businesses in cash so they don't have to pay
:14:18. > :14:23.credit card charges." Somebody says, "I have got a ?10 note in my wallet
:14:24. > :14:28.in case systems go down, but 99% of the time it's contactless all the
:14:29. > :14:34.way." I like reading my online statement, it is nothing, but coffee
:14:35. > :14:38.shops and pubs. You do stuff on your phone... It is too techie.
:14:39. > :14:43.The foodie revolution is shaking up the restaurant business,
:14:44. > :14:45.we'll get the lowdown from celebrity chef Mark Hix.
:14:46. > :14:58.You're with Business Live from BBC News.
:14:59. > :15:03.Challenger bank Metro has reported a 33% growth in underlying profits
:15:04. > :15:13.The high street bank also increased deposits by ?1.1 billion.
:15:14. > :15:17.Theo Leggett is in our Business Newsroom.
:15:18. > :15:22.This is pretty stellar numbers, stellar performance from little old
:15:23. > :15:28.Metro. Pretty good numbers, you are right. But don't forget, this is
:15:29. > :15:32.still a very small bank. Metro Bank was only set up in 2010, as a
:15:33. > :15:36.challenger to the big high street lenders one day and it is doing
:15:37. > :15:41.pretty well at the. It's managed to it increased its profits, third
:15:42. > :15:45.successive quarter of increased profits. We're used to seeing high
:15:46. > :15:48.street lenders reporting profit in billions, this is small, only 50
:15:49. > :15:53.branches. It wants to create another ten over the next year. Look at the
:15:54. > :15:59.share price. Investors don't quite know what to make at this moment.
:16:00. > :16:03.Reasonably good numbers but also other things you need to look at.
:16:04. > :16:07.For example, the level of deposits has gone up very rapidly, they have
:16:08. > :16:10.increased by more than ?1 billion over the last quarter, lending
:16:11. > :16:15.hasn't increased quite the same rate. For a bank that is trying to
:16:16. > :16:18.grow, trying to build its presence in the market, some analysts say
:16:19. > :16:21.that could be a pointer to a worry in future but we will give them the
:16:22. > :16:26.benefit of the doubt. We will say these are positive numbers so far.
:16:27. > :16:33.The dogs! Talk about them dogs! Bring your dog in! It's a unique
:16:34. > :16:40.quirky little banks, isn't it? I drive by the branches and they are
:16:41. > :16:44.flash, the dogs, open seven days a week, customer friendly, apparently.
:16:45. > :16:47.Certainly if you've got a dog. They are trying to be a disruptive bank,
:16:48. > :16:52.they are trying to do things differently from other banks and
:16:53. > :16:54.that includes relying, to a great extent, and having branches where
:16:55. > :17:00.people can go in and speak to their banker. You know as well as I do
:17:01. > :17:03.that most banks are moving away from that model, they have hundreds of
:17:04. > :17:07.branches but they are closing them because they think people would
:17:08. > :17:11.rather do their banking online. For the bank it is cheaper to provide
:17:12. > :17:14.services online. Metro Bank says that is the wrong way to go, they
:17:15. > :17:17.can embrace new technologies and they will have those branches where
:17:18. > :17:22.you can bring in your dog and they provide dog biscuits. Good on you,
:17:23. > :17:27.we will talk to you soon. Pretty good customer service. I will
:17:28. > :17:29.switch! Do it. Metro, if you are listening, I want to switch, I don't
:17:30. > :17:38.have a dog but I will switch. You're watching Business Live,
:17:39. > :17:39.our top story: President Trump is getting
:17:40. > :17:41.ready to make a major He's already pledged to simplify
:17:42. > :17:46.the system and cut tax rates for some individuals
:17:47. > :17:51.and for corporations. A quick look at how
:17:52. > :17:57.markets are faring. Trump, tax and the French election,
:17:58. > :17:59.let's move on. And now let's get the inside track
:18:00. > :18:02.on the world of celebrity chefs It's a competitve business,
:18:03. > :18:05.where there's big pressure to constantly come up with new ideas
:18:06. > :18:08.to help you stand out Mark Hix started off in the staff
:18:09. > :18:12.canteen at London's Hilton hotel but now has nine top restaurants
:18:13. > :18:15.of his own including this one, One of their unique selling
:18:16. > :18:21.points is the art that Damien Hirst is perhaps the biggest
:18:22. > :18:31.name he's partnered with. Joining us now is the well known
:18:32. > :18:40.restauranteur and chef, Mark Hix. Welcome, thank you for coming in.
:18:41. > :18:46.Did you bring any food? That's it? Nothing! Thanks! When it comes to
:18:47. > :18:49.restaurants, it is one of those sectors that we hear there's always
:18:50. > :18:54.a lot of turnover. Restaurant is open and close, how do you make your
:18:55. > :18:58.money in restaurants? It is a good question. Some restaurants, for
:18:59. > :19:03.example my third restaurant in Soho, I kind of acquired because the
:19:04. > :19:06.previous business went bust. There are various ways that you can, you
:19:07. > :19:12.know, get a restaurant. That was fortunate for me. But you've got to
:19:13. > :19:15.keep it running and you've got to keep the tills... Exactly, there are
:19:16. > :19:19.various ways to get investment, you can get an angel investor, you can
:19:20. > :19:23.go to the bank. Someone that fancies dabbling in the restaurant business,
:19:24. > :19:26.not always a good idea. It is tough. Once you have the investment, in
:19:27. > :19:30.terms of keeping the profits up, it seems to be difficult business to
:19:31. > :19:35.continue to be successful in. It is always about the top line, the
:19:36. > :19:40.turnover. That doesn't always, depending on business, equate to how
:19:41. > :19:44.good the bottom line is. But that is the same with all businesses. You
:19:45. > :19:50.have to constantly be reinventing yourself, keeping things fresh. Hix
:19:51. > :19:57.Soho, we are doing a revamp at the moment. I got some funding from a
:19:58. > :20:01.business called WSH, I was a consultant for them for the last six
:20:02. > :20:10.years. We just had a bit of a makeover. In fact, Soho has changed
:20:11. > :20:16.over the years. Hix Soho was 50% meat, 50% meat and now we are 80%
:20:17. > :20:19.fish because in Soho, there's not really any decent fish restaurants.
:20:20. > :20:25.I have just switched. Finding your niche. And being flexible. While you
:20:26. > :20:31.were talking, we were showing some of the artwork. That whole art
:20:32. > :20:36.thing, is it a bit gimmicky? People what to eat your food. Is it really
:20:37. > :20:42.about what surrounds them? A lot of people come to the restaurant with
:20:43. > :20:46.interest to the art. I get asked dealers, gallery owners, we host a
:20:47. > :20:50.lot of at parties. If you want to decorate your restaurant, you can go
:20:51. > :20:53.shopping for art, not know anything about the artwork itself but what I
:20:54. > :20:58.try to do is have a relationship with the artist. All the work in the
:20:59. > :21:00.restaurant is commissioned specifically for the restaurant.
:21:01. > :21:06.Like the Damien Hirst cow for example. Yeah stop that tank of the
:21:07. > :21:12.mother Howard is chicken and stay, what is the many -- that tank of
:21:13. > :21:17.formaldehyde is basically. We talked about a cashless society. For the in
:21:18. > :21:22.your restaurants, what is it? Or credit cards. We don't do
:21:23. > :21:30.contactless. You very rarely see cash coming through. -- they are all
:21:31. > :21:35.credit cards. If you Perry AMEX all these... Would you stop taking cash?
:21:36. > :21:38.Some cafes and restaurants were stealing cash at all. That a tricky
:21:39. > :21:43.one. Especially in a restaurant business. Because, tips, that kind
:21:44. > :21:49.of stuff, people still leave cash tips. You very rarely see people
:21:50. > :21:54.actually paying by cash. It's always a bit suspicious if someone pays by
:21:55. > :21:59.cash! LAUGHTER Exactly when I pay with cash people
:22:00. > :22:03.think what is going on. Crisp ?50 note! It would be remiss of me, to
:22:04. > :22:08.talk about Brexit, but I am curious about your point on this. There is a
:22:09. > :22:12.lot of worry in the industry, your industry, about staffing if they
:22:13. > :22:19.bring in these immigration controls, free movement controls. It could
:22:20. > :22:23.have an impact on you, you are a big local producer, using local produce.
:22:24. > :22:26.I get asked that question a lot. People phoned me for interviews
:22:27. > :22:34.about staffing but it hasn't really affected us. Staffing levels are
:22:35. > :22:38.good. They are still sparse because lots of restaurants and hotels are
:22:39. > :22:43.opening. You use a lot of foreign staff. We do. It is about 50-50, I
:22:44. > :22:47.would say. That doesn't mean that because you are using imported
:22:48. > :22:51.staff, if you like, that the quality goes down. Because a lot of staff
:22:52. > :22:57.from Eastern Europe, for example, are as good as the British. It has
:22:58. > :23:03.to become a part of your restaurant equation if you like. Thank you for
:23:04. > :23:09.joining us. Nobody told you, but we like props on this programme! Props,
:23:10. > :23:13.as a restaurant, that means food, a bit breakfast! . Or Brexit. Very
:23:14. > :23:22.good. Here on the show we like to hear
:23:23. > :23:29.from you - here's a reminder of how Stay ahead with the breaking
:23:30. > :23:31.business news, we keep you up-to-date with the latest business
:23:32. > :23:34.with insight and analysis from the BBC's team of editors right around
:23:35. > :23:36.the world. We want to hear from you. Get involved on the BBC business
:23:37. > :23:43.live web page. On TV and online, whenever you need
:23:44. > :23:51.to know. James Hughes, Chief Market Analyst,
:23:52. > :24:01.at GKFX joins us now. You have returned. We will kick off
:24:02. > :24:08.with another difficult PR story for United. What was on course to be the
:24:09. > :24:19.world's largest rabbit, Simon, unfortunately has died on a flight
:24:20. > :24:25.on United Airlines going to O'Hare airport, the same place they have
:24:26. > :24:32.the issues before. This is a story about a giant rabbit dying on an
:24:33. > :24:37.aeroplane. That's not necessarily him! He is bigger! That is him. It
:24:38. > :24:44.is a picture of him. Simon the rabbit was flying to O'Hare? You
:24:45. > :24:48.couldn't write this! No. Supposedly he was checked out beforehand and he
:24:49. > :24:51.was absolutely fine but the biggest problem if it is another scandal for
:24:52. > :24:55.United airlines who are struggling with scandals ever since previously
:24:56. > :25:00.the passenger being dragged off because of an overbooked flight. It
:25:01. > :25:05.is just... Unfortunate because it is perhaps not even United fault.
:25:06. > :25:10.Animals do die on trips. Don't like me like that! They do. 100,000
:25:11. > :25:16.animals fly during the day and the numbers were 17 last year. Nine of
:25:17. > :25:23.them on United. That's true. I wonder if the CEO is eating rabbit
:25:24. > :25:27.stew! A lot of it. He was a big old rabbit. Cashless society, is that
:25:28. > :25:32.where we are going? It is interesting. Mark was saying
:25:33. > :25:37.previously about... You do need cash for various different things. If you
:25:38. > :25:41.look at different points like parking meters or kids taking money
:25:42. > :25:44.into school for something or if you tip in a restaurant something like
:25:45. > :25:47.that, we need cash for those sorts of things but if you look at this
:25:48. > :25:51.poll, actually in the UK, the numbers were lower than they were in
:25:52. > :25:55.the rest of Europe. As to how many people use cashless. Good on you,
:25:56. > :25:56.mate, short and sweet, sorry, we've got to go.
:25:57. > :26:01.There will be more business news throughout the day on the BBC Live
:26:02. > :26:03.web page and on World Business Report.