:00:09. > :00:12.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:13. > :00:18.Global market turmoil intensifies with Wall Street
:00:19. > :00:22.experiencing its worst day since the presidential election.
:00:23. > :00:40.Live from London, that's our top story on Thursday 18 May.
:00:41. > :00:42.Stock markets around the world are nervous that the political
:00:43. > :00:45.controversy around President Trump will overshadow his
:00:46. > :00:58.Also in the programme - Alibaba heads West.
:00:59. > :01:00.China's 300 billion dollar e-commerce giant looks to America -
:01:01. > :01:08.And this is what the numbers look like at the start of trade in Europe
:01:09. > :01:10.as that Trump Slump rolls around the world.
:01:11. > :01:17.We hear how the man behind Regus serviced offices turned his quest
:01:18. > :01:20.to find a flexible workspace into a multi-billion dollar empire.
:01:21. > :01:24.And if you struggle with recycling, you're not alone.
:01:25. > :01:33.The worst products to recycle have been named and shamed -
:01:34. > :01:36.so we want to know what are your recycling frustrations?
:01:37. > :01:47.Get in touch use the hashtag #BBC Biz Live.
:01:48. > :01:56.Send us your comments about that. My question is whether you can put
:01:57. > :01:59.envelopes in recycling if they have the plastic window?
:02:00. > :02:03.For months, optimism about the Trump presidency has been powering
:02:04. > :02:09.But late on Wednesday the Trump bump turned into the Trump slump -
:02:10. > :02:12.as US stocks and the Dollar suffered their worst day
:02:13. > :02:15.It's down to growing concern that the President's promised tax
:02:16. > :02:17.cuts and pro-business reforms may never materialise,
:02:18. > :02:19.as the White House battles one controversy after another.
:02:20. > :02:24.The Dow Jones industrial average fell 372 points,
:02:25. > :02:29.and both the Dow and S 500 suffered their worst falls
:02:30. > :02:42.The Nasdaq had its biggest loss for almost a year.
:02:43. > :02:53.That is what markets are looking like. We will talk more about the
:02:54. > :02:58.dollar in a moment. The last time the Nasdaq fell this much was when
:02:59. > :03:07.the UK voted for Brexit. This is the US dollar against ten
:03:08. > :03:11.leading currencies over the last year put up it has lost all of its
:03:12. > :03:15.game since Donald Trump became president and is now back to where
:03:16. > :03:19.it was last November. Look at the spike and fall away again.
:03:20. > :03:23.Our economics editor Kamal Ahmed is here.
:03:24. > :03:30.Thank you for being with us in the studio. We were anticipating this
:03:31. > :03:34.rally would not go on and on but the political turmoil has really
:03:35. > :03:39.intensified in the last 48 hours with regards to President Trump.
:03:40. > :03:43.That was the trigger. What has been happening is there have been some
:03:44. > :03:48.headwinds growing against this exuberance that was in place after
:03:49. > :03:56.Donald Trump was elected with this big promise about tax reform,
:03:57. > :04:01.appropriateness agenda, doubling gross in America. -- a pro business
:04:02. > :04:06.agenda. There was inability in the White House to drive through
:04:07. > :04:10.legislation in the houses in Congress. They were both run by
:04:11. > :04:15.Republicans. That reform failed. There was a wobble around that. Then
:04:16. > :04:21.were the weakest in three years. Has were the weakest in three years. Has
:04:22. > :04:28.the American economy been doing as well as people thought? Another
:04:29. > :04:33.wobble. Then, exactly as you say, there was always an idea, would
:04:34. > :04:40.Donald Trump as president be like campaigning Trump or would he become
:04:41. > :04:44.a more traditional political figure? The political controversies have
:04:45. > :04:49.continued and so there is a volatility in politics which I think
:04:50. > :04:54.has now led, this has been a spark for people looking back to the
:04:55. > :04:57.reform agenda, will the tax reforms come through? Is the American
:04:58. > :05:03.economy doing as well as people thought? The political turmoil will
:05:04. > :05:07.continue. Suddenly it is a risk of. If you are things like Treasuries
:05:08. > :05:12.and defence investments like utilities and properties, they are
:05:13. > :05:18.all up. Things like the equity markets, they are all down. People
:05:19. > :05:23.have gone risk off. Safe havens is very attractive right now with the
:05:24. > :05:27.price of gold going up, etc, and began getting stronger. There is a
:05:28. > :05:32.lot of disappointment within the business community in the US and
:05:33. > :05:38.elsewhere about the fact, his priorities in a way. They wanted
:05:39. > :05:42.these economy boosting members, tax reform, that kind of thing to come
:05:43. > :05:51.in much sooner. We are beyond the 100 days and all of that. Now there
:05:52. > :05:55.is this political storm. They have realised that the politics makes
:05:56. > :05:59.chances of that getting through the houses more difficult. And, of
:06:00. > :06:05.course, the fact is that the Republicans may not be in control of
:06:06. > :06:09.both Houses by the time president Trump gets halfway through his
:06:10. > :06:18.presidency because of the elections. He has a rather small window. If he
:06:19. > :06:24.does not get the report was through, you are right. People believe there
:06:25. > :06:32.will be reform but there are risks that the reform may not happen and
:06:33. > :06:35.they have increased. Someone on the campaign trail promises one thing
:06:36. > :06:39.and does not necessarily deliver. It was a question of, would there be
:06:40. > :06:43.greater stability once he was president and once he surrounded
:06:44. > :06:49.himself with businessmen from Goldman Sachs, for example? As a
:06:50. > :06:53.president, he was quite similar to how he campaigned. To the
:06:54. > :06:57.traditionalist it all seems quite random things would happen in
:06:58. > :07:01.different ways. That means the volatility is still barefoot about
:07:02. > :07:05.is why people are pulling back a bit and the Trump 's aid has come after
:07:06. > :07:09.all the exuberance. Let's take a look at some of
:07:10. > :07:11.the other stories making the news... There have been protests in Brazil
:07:12. > :07:14.over a fresh corruption allegation. President Michel Temer has denied
:07:15. > :07:17.a report that he authorised bribes to silence a possible witness
:07:18. > :07:21.in a huge corruption scandal. A Brazilian newspaper says it has
:07:22. > :07:25.obtained recordings of a discussion between the president
:07:26. > :07:27.and the chairman of the giant US and EU officials have decided NOT
:07:28. > :07:32.to impose a ban on laptops and tablets in cabin baggage
:07:33. > :07:35.on flights from Europe. But after meeting in Brussels
:07:36. > :07:38.to discuss the threat to aviation safety, officials said other
:07:39. > :07:39.measures were still America has previously said it
:07:40. > :07:45.wanted to extend the ban - which covers eight mostly Muslim
:07:46. > :08:12.countries - to Europe. Let show you a story about Facebook.
:08:13. > :08:24.The competition commissioner has been tweeting about this.
:08:25. > :08:30.That is a really interesting story that is emerging. She was a guest on
:08:31. > :08:39.this programme. Some of the tweets you have been
:08:40. > :08:41.sending in today. We asked, what are your frustrations with regard to
:08:42. > :08:53.recycling quest of their rather the top six offenders. Coffee pods are
:08:54. > :08:57.the worse things. Paul says, trying to remove bubble wrap from Jiffy
:08:58. > :09:04.bags drives him mad. You peel the little plastic window. Is that how
:09:05. > :09:06.it works? You put the paper in the recycling and the plastic in the
:09:07. > :09:10.bin. Keep your comments coming in. To Japan now, where economic growth
:09:11. > :09:13.is picking up fast - Japan's economy grew at an annual
:09:14. > :09:18.rate of 2.2% in the first three It's the fifth quarter in a row that
:09:19. > :09:22.growth has improved - that's the best run in more
:09:23. > :09:28.than a decade. Are we getting excited about this
:09:29. > :09:32.thinking it is finally working? Seijiro Takeshita is in Tokyo
:09:33. > :09:47.for us, he's a professor Always good to see you. Put it into
:09:48. > :09:53.perspective for us. Is the Prime Minister thinking this is working or
:09:54. > :09:59.are we getting over excited? Unfortunately, it is the latter.
:10:00. > :10:05.Last year rises were horrible because of the bad weather. We are
:10:06. > :10:08.getting much better in terms of capital expenditure by corporations.
:10:09. > :10:12.You need to see a wage rise boosting private consumption that is not
:10:13. > :10:16.happening and I do not think it will happen considering the Conservative
:10:17. > :10:21.nurse of the Japanese companies. As we said, the third quarter in a row
:10:22. > :10:25.that growth has improved and the best run for more than a decade. We
:10:26. > :10:33.have been keeping such a close eye on it stopped expectation for Japan
:10:34. > :10:36.has always been so high. Is the worst over? We will face a lot of
:10:37. > :10:40.ambiguity, particularly in the United States, and also in Europe.
:10:41. > :10:46.The growth you have been talking that has been driven by exporters.
:10:47. > :10:50.Where we are seeing ambiguity factors overseas, there is
:10:51. > :10:55.cloudiness in the forefront. That is one reason why people are not
:10:56. > :10:57.rejoicing as numbers suggest. Thank you for your perspective on the
:10:58. > :10:59.latest news out of Japan. Joining us is Jane Foley, Senior
:11:00. > :11:06.Currency Strategist, Rabobank. You have been listening to all these
:11:07. > :11:09.conversations about what is going on in the United States. We have been
:11:10. > :11:15.talking about Japan with currency playing a huge part and the dollar
:11:16. > :11:20.weakening significantly. This does not help Tokyo at all. Give us your
:11:21. > :11:25.take on all of this. The yen is a safe haven. Whenever there is little
:11:26. > :11:30.attention the yen goes up. The dollar perhaps is more interesting.
:11:31. > :11:35.It has a very murky relationship with safe haven flows. The US
:11:36. > :11:40.Treasury market, US government debt, is a prime piece of paper people
:11:41. > :11:46.want at times of political stress. That can support the dollar. Now the
:11:47. > :11:49.dollar is under pressure because the market is disappointed the reform
:11:50. > :11:55.programme may not happen. A quick word on that. We talked about at the
:11:56. > :11:58.start of the programme, what was happening in the United States. Is
:11:59. > :12:03.it general disappointment that all of the sugar high we got on the
:12:04. > :12:06.campaign trail may not turn out to be much? If we look back to where
:12:07. > :12:13.the markets were today compared with where they were, there is a big
:12:14. > :12:17.change in US equity markets. They hope the reforms that Donald Trump
:12:18. > :12:24.made would cut away a lot of regulation and boost growth. Donald
:12:25. > :12:30.Trump is so busy trying to firefight with all of these scandals. Here in
:12:31. > :12:36.Europe, the UK has had a lot of economic data this week. More today
:12:37. > :12:40.could give us your expectations. The trend we have been seeing in retail
:12:41. > :12:46.sales since December has been one of weakening trend. The reason for that
:12:47. > :12:50.is inflation. Inflation is rising at a higher rate than wages. We have
:12:51. > :12:55.had confirmation of that. That means the money we have in our pockets
:12:56. > :12:59.after we spend out on items like food and petrol is less. That is
:13:00. > :13:04.down to the weakness of the pound. It is down to the weakness of the
:13:05. > :13:09.Sterling exchange rate relative to this time last year. Jane will
:13:10. > :13:11.return. Sharing with us your recycling frustrations. Indeed. She
:13:12. > :13:19.has got the list. Alibaba - the Chinese e-commerce
:13:20. > :13:22.giant that's been described as the country's eBay and Amazon
:13:23. > :13:24.rolled into one, is expected to report another jump
:13:25. > :13:30.in profits later today. It shares have been soaring since it
:13:31. > :13:35.floated in New York and it now has a stock market value of $300 billion.
:13:36. > :13:45.The vast amount of the business is in China which is something
:13:46. > :13:51.billionaire to change. He loves this country and he loves China. For
:13:52. > :13:55.president Trump, the best way forward Jack to show his love this
:13:56. > :14:02.country is to make it easier for Americans to sell their wares to
:14:03. > :14:07.China. This sneaker shop in Manhattan is an example. It has a
:14:08. > :14:10.physical store but 90% of the business is done online. Since
:14:11. > :14:17.August but they have been selling on Alibaba and it has been a big boost
:14:18. > :14:21.to their sneaker empire. Over $100 million this year. They run like a
:14:22. > :14:33.start-up, which has been really refreshing. We're not -- they treat
:14:34. > :14:42.us like we are a trusted multi-billion dollar company. The
:14:43. > :14:47.leader of China's big asked -- biggest e-commerce retailer wants to
:14:48. > :14:50.bring business to China and 2 billion customers in the next
:14:51. > :14:56.decade. They have been talking about making a big push out of China since
:14:57. > :15:00.they became public company and prior to that when they filed to become
:15:01. > :15:06.public and number of years ago at this point. If you look at the
:15:07. > :15:10.revenue base, it is almost entirely treated to China. They might well
:15:11. > :15:14.have aspirations and talk about that. The numbers suggest there is a
:15:15. > :15:19.lot of work to be done on that front. He is not afraid of a little
:15:20. > :15:23.hard work. You will be in the US next month to make his pitch
:15:24. > :15:28.directly to US businesses. It just may be an uphill battle.
:15:29. > :15:35.We meet that man cashing in on the flexible working boom -
:15:36. > :15:38.It's made him a billioniare and says Brexit could be good
:15:39. > :15:50.You're with Business Live from BBC News.
:15:51. > :15:54.Here is a pet peeve we have been discussing this morning.
:15:55. > :15:58.Do you find it hard to know what you can and can't recycle?
:15:59. > :16:02.I think we all do, especially where we live, all different rules for
:16:03. > :16:04.different boroughs. And today the worst items to recycle
:16:05. > :16:08.have been named and shamed. Pringles tubes and Lucozade
:16:09. > :16:10.bottles topped the list We are running short
:16:11. > :16:15.of holes in the ground Yet landfill sites are peppered
:16:16. > :16:23.with products that are supposed The trouble is that so many products
:16:24. > :16:29.nowadays have several different types of materials
:16:30. > :16:31.in their packaging. That can make them almost
:16:32. > :16:33.impossible to recycle. The foil interior, the cardboard
:16:34. > :16:51.sleeve, the metal bottom. There are different plastics
:16:52. > :16:58.in the base of the bottle Black plastic is virtually
:16:59. > :17:09.useless for recycling. So what will stop us dumping complex
:17:10. > :17:15.packages straight into the bin? Well, Prince Charles is launching
:17:16. > :17:17.a $2 million prize to stimulate new and more environmentally
:17:18. > :17:22.friendly designs and packaging. If the competition works,
:17:23. > :17:24.it will be easier in the future to shop for items that
:17:25. > :17:40.do not fill a landfill. One interesting point from fine
:17:41. > :17:43.repair cafe, it gives you an indication of where they are coming
:17:44. > :17:48.from, suggesting that you need to repair more stuff, bring broken
:17:49. > :17:55.stuff in the repair, we achieve a 63% the pay rate. Repair, repair,
:17:56. > :18:01.repair. Another big story today, Royal Mail posting a big rise in
:18:02. > :18:05.profits as parcels improved. I assume the money they make from
:18:06. > :18:09.delivering parcels is improving, annual profits up by 25%. Growth in
:18:10. > :18:14.parcel delivery business, it would seem it is doing well. It does well
:18:15. > :18:17.from online, we send fewer letters but we get more parcels delivered
:18:18. > :18:33.because of our online shopping habits. Full details on the website.
:18:34. > :18:42.European markets, markets worldwide, we are watching them very closely as
:18:43. > :18:45.the turmoil surrounding the White House and the Trump administration
:18:46. > :18:49.intensifies. So let's quickly show you how things are going right now
:18:50. > :18:53.so you have a sense of how the European day is progressing. Down
:18:54. > :18:57.half a percent in London and elsewhere. This was after quite
:18:58. > :19:01.heavy losses yesterday as well for the European markets, so not a
:19:02. > :19:05.change in sentiment yet. The big question, can President Trump get
:19:06. > :19:06.through those reforms he promised? Markets are increasingly doubtful
:19:07. > :19:10.that will happen. All businesses need somewhere
:19:11. > :19:12.to work but for many being able to shrink or grow their office
:19:13. > :19:15.is neither easy nor cheap. So companies that provide rented
:19:16. > :19:18.work spaces are growing quickly - cashing in on our need
:19:19. > :19:20.to be more flexible. London is the world's largest market
:19:21. > :19:22.for flexible serviced office space with around $21bn -
:19:23. > :19:25.that's ?16 billion worth The USA and UK top the list
:19:26. > :19:32.for co-working , that's when you share a work space
:19:33. > :19:35.with other people who work And It's not just freelancers
:19:36. > :19:50.and small businesses that use them, big multinationals like
:19:51. > :19:55.Google, HSBC, McKinsey And perhaps that why it's been such
:19:56. > :20:00.a profitable business for IWG - its brands include Regus and has
:20:01. > :20:03.3,000 centres in 110 It's the result of nearly 30 years
:20:04. > :20:08.work for founder Mark Dixon. I caught up with him at one
:20:09. > :20:11.of his co-working spaces here in London to hear how it
:20:12. > :20:25.all began. I started off with sandwiches,
:20:26. > :20:29.delivering them on a bicycle, I didn't have my driving licence at
:20:30. > :20:35.the time. The business was a failure but my customers were very happy.
:20:36. > :20:41.Just tell us how that prepared you for running Regis now, which is huge
:20:42. > :20:45.and 110 countries. I worked out I needed more experience. I travelled
:20:46. > :20:50.all around the world, did lots of different things working for other
:20:51. > :20:56.people, gaining experience. But with a goal. The goal was to run my
:20:57. > :21:06.business and do it well. So what inspired you to start Regus? I had
:21:07. > :21:09.my first expenses myself trying to get an office and I could see other
:21:10. > :21:12.people were having the same problems, they were meeting in
:21:13. > :21:16.coffee shops accept. I thought there was an opportunity and from that
:21:17. > :21:20.single centre we still have we now have over 3000 buildings. What makes
:21:21. > :21:26.you the person that can do that transition? You have to be someone
:21:27. > :21:31.willing to learn, adapt. You have to be adaptable Camier have to be able
:21:32. > :21:35.to hire good people, build a team. We are in a fast growing industry,
:21:36. > :21:41.this is a new sector, this is new real estate, how people can work in
:21:42. > :21:45.the future. Yes, there is more common vision that everyone is
:21:46. > :21:49.growing in this marketplace. But it is a marketplace where you truly
:21:50. > :21:54.have to be global, you think, to survive? What is important is to
:21:55. > :21:57.have national networks, so we are growing in each country National
:21:58. > :22:00.platform so companies within that country can work anywhere, people
:22:01. > :22:08.can work from home, dropped in. It is a new way of working. So scale in
:22:09. > :22:13.a country is probably more important than global scale, but the two work
:22:14. > :22:17.together. London is an extremely busy city for you, probably the most
:22:18. > :22:24.important in Europe, in terms of demand for your services. How does
:22:25. > :22:27.Brexit affect what you do? I think we are concerned about Brexit, but
:22:28. > :22:34.we are pretty bullish on the UK market. So what we can see is UK
:22:35. > :22:37.companies very adaptable, a lot of companies adopting new flexible work
:22:38. > :22:46.practices, so although there may be changes that will come once Brexit
:22:47. > :22:49.finally arrives, there is lots of runway for our particular business
:22:50. > :22:57.and the whole of the UK and in London. Did you want Brexit? Diyas.
:22:58. > :23:00.I am a European at heart, you know, I love Europe. The environment we
:23:01. > :23:05.are in at the moment where political risk is such a big deal. For
:23:06. > :23:09.examples over the last couple of years, elections and the United
:23:10. > :23:13.States, we have one coming up here in the UK, France, Germany, not to
:23:14. > :23:17.mention Asia, where you have a big presence, how do you measure
:23:18. > :23:21.something like political risk? Generally speaking, all of these
:23:22. > :23:25.things are not bad things far business because we are providing
:23:26. > :23:29.businesses with flexibility at variable cost. But do shocks like
:23:30. > :23:34.poor example the 2008 financial crisis actually give you an
:23:35. > :23:39.opportunity? The short answer is yes but I would rather not do 2008
:23:40. > :23:42.again. All of these shocks make companies think more deeply about
:23:43. > :23:46.how they are operating, how can we become more flexible? And especially
:23:47. > :23:50.in real estate, which is one of those fixed things that most
:23:51. > :23:55.companies rarely have difficulty changing, difficulty reducing cost,
:23:56. > :24:00.difficulty in making that variable. So what is next to you? You have a
:24:01. > :24:05.lovely home in Monaco, are you going to retire and enjoy the super
:24:06. > :24:11.yachts? What are you going to do next? I have got to finish this job
:24:12. > :24:14.first. This, for me, is really a job that is unfinished. I think the best
:24:15. > :24:23.time for our businesses is coming now. The new digital world, more
:24:24. > :24:27.competition from new players. I love business, it sort of like a sport,
:24:28. > :24:31.it's absorbing, it's passionate. So I think our best time is yet to
:24:32. > :24:34.come, think there are enormous possibilities, so I am quite excited
:24:35. > :24:39.about the future. I am not ready to retire just yet. He absolutely
:24:40. > :24:42.showed no signs of wanting to retire, that was Mark Dixon, who
:24:43. > :24:46.started his career delivering Salmond is on a bike. Jane is back
:24:47. > :24:50.with us to talk through some of the papers. We have been asking people
:24:51. > :24:55.about their recycling horror stories, this was after the six
:24:56. > :25:00.worst offenders were named in shaded and, Pringles tube 's, Lucozade
:25:01. > :25:04.bottles stop you are a fan of recycling, you are building an
:25:05. > :25:09.eco-home? I am definitely trying to build an eco-home. It is very slow.
:25:10. > :25:13.But I think we all have a responsibility for recycling, and of
:25:14. > :25:17.being conscious of the legacy we are leaving on this planet. But one
:25:18. > :25:21.thing, despite all the different bugbears I have, one thing that
:25:22. > :25:24.comes as a common to nominate, and that is the amount of packaging and
:25:25. > :25:28.the amount of difficult to recycle packaging. I think the manufacturers
:25:29. > :25:31.need to be told that there need stability packaging, because the
:25:32. > :25:37.amount of rubbish that one family can produce in just one week is
:25:38. > :25:41.huge. It is phenomenal. It is huge, it takes a huge amount of and we
:25:42. > :25:50.need less of it. I agree with you Jane. The sponsors frustrated, every
:25:51. > :25:55.packet is currently not recyclable. Having four bins in my kitchen but I
:25:56. > :25:58.am happy to cycle. That might be the future. Thanks, Jane, good to see
:25:59. > :26:06.you and to have your company as well goodbye.