26/04/2017 BBC Business Live


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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.


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