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