:00:00. > :00:08.This is Business Live from BBC News with Aaron Heslehurst
:00:09. > :00:12.France gets ready for Macron economics.
:00:13. > :00:15.But does the new president have the right formula to bring
:00:16. > :00:33.Live from London, that's our top story on Friday 19th May.
:00:34. > :00:38.Never mind 100 days - how about 100 hours?
:00:39. > :00:42.French president Emmanuel Macron has been in the job for five days,
:00:43. > :00:45.but he's already got his work cut out ahead of the parliamentary
:00:46. > :00:49.We take a look at what he hopes to achieve.
:00:50. > :00:55.Tense times for Mexico as its two-decade-old trade deal
:00:56. > :01:03.And, as always, we bring you the latest action on the markets -
:01:04. > :01:05.we'll find out why the markets have pushed aside, for now,
:01:06. > :01:19.And we look back at the past week in business, when US
:01:20. > :01:20.markets had their worst day since November,
:01:21. > :01:23.and the economy was the main focus in the UK election.
:01:24. > :01:25.That's all with our business editor, Simon Jack.
:01:26. > :01:29.It's easy to get in touch with the programme -
:01:30. > :01:49.It is Friday, we have got that Friday feeling.
:01:50. > :01:52.We start in France - where the new President,
:01:53. > :01:55.Emmanuel Macron, says he expects no honeymoon from the public
:01:56. > :02:02.He now has to try and win a majority in next month's
:02:03. > :02:04.parliamentary elections - and implement the economic policy
:02:05. > :02:12.So what is Macron economics - and can it solve France's problems?
:02:13. > :02:21.Macron calls himself 'neither right nor left',
:02:22. > :02:24.he's a centrist, and, sure enough, the team he announced on Wednesday
:02:25. > :02:27.is a diverse mix of figures from the left, right and centre.
:02:28. > :02:29.He says his economic policy is based on the Nordic model.
:02:30. > :02:33.Basically, it mixes spending cuts on the one hand
:02:34. > :02:37.He plans to cut spending by 60 billion euros over
:02:38. > :02:47.The civil service will be hit hard - 120,000 jobs will go.
:02:48. > :02:50.But over the same period he has pledged 50 billion euros worth
:02:51. > :03:03.That includes cutting the corporate tax rate from 33% to 25%
:03:04. > :03:06.and lowering the tax burden on households.
:03:07. > :03:09.It's a similar story with free trade.
:03:10. > :03:12.As a former banker, he's broadly for it.
:03:13. > :03:18.But he's also talked about creating a "protective Europe".
:03:19. > :03:29.You know how we hear Trump saying, by American, by American? Will he
:03:30. > :03:36.wants us to buy European. He wants to stop non-EU companies
:03:37. > :03:39.taking over key industries. France's jobless rate is almost
:03:40. > :03:46.double that of Germany's at 9.6%. Many employers blame strict labour
:03:47. > :03:49.laws, like the 35-hour working week. But they are fiercely
:03:50. > :03:54.defended by unions. You've guessed it,
:03:55. > :04:00.somewhere in-between. He wants to keep the 35-hour work
:04:01. > :04:04.week, but change the way the law is applied to make it
:04:05. > :04:10.easier to hire and fire. Jean Pierre Lambert is a managing
:04:11. > :04:23.director at the investment bank KBW. He has to act fast, doesn't he? Do
:04:24. > :04:27.you think the team he has assembled around him will help him crack that
:04:28. > :04:32.really difficult problem of reforming France's labour laws?
:04:33. > :04:38.Plenty of other administrations have failed. He has an excellent economic
:04:39. > :04:40.minister, a Budget minister who is a rising star in the Republican Party,
:04:41. > :04:46.and he has got 18 that is ready to and he has got 18 that is ready to
:04:47. > :04:49.fight. The first bite will be the parliament in the elections which
:04:50. > :04:53.are going to take place, will he get the majority? So far the polls
:04:54. > :04:58.indicate he may get the majority, which would be an achievement.
:04:59. > :05:04.Incredible, given this party was only set up just over a year ago!
:05:05. > :05:10.Absolutely. Not everything in France is decided in Parliament, as you
:05:11. > :05:13.alluded. Do you think the timing here is crucial, because if he gets
:05:14. > :05:16.it through in the summer plenty of people will be on holiday and less
:05:17. > :05:23.inclined to strike? A good point! Yes, a good point, and
:05:24. > :05:27.he has to be prepared to take hard action and face the repercussions if
:05:28. > :05:32.people are fighting, he has to take a hard stance and he is a good
:05:33. > :05:37.character to do that. This is what I don't understand, France runs a
:05:38. > :05:41.deficit, for the uninitiated, that means France spends more than it
:05:42. > :05:47.earns from tax, right? He wants to make these big tax cuts, so they
:05:48. > :05:54.already spend more than they make in tax, can they afford that? He has a
:05:55. > :05:59.balancing act to implement. Critical for him is to gain credibility again
:06:00. > :06:01.with Germany and because previous administrations have tried to
:06:02. > :06:06.deliver, including Francois Hollande, but did not deliver
:06:07. > :06:11.reform, if he wants the support of Germany he needs to be the first to
:06:12. > :06:15.put his house in order, which includes respecting the budgetary
:06:16. > :06:21.rules said added European level, the 3% deficit, and he wants also to
:06:22. > :06:26.unemployment because he wants to give more to the young people, 25%
:06:27. > :06:30.unemployment is fairly high. How do you think is planned to buy European
:06:31. > :06:38.will go down with Angela Merkel? Germany has concerns about
:06:39. > :06:44.non-European companies buying critical industries so this issue, I
:06:45. > :06:48.don't think she was that much opposed, it is a subject for
:06:49. > :06:51.discussion, it may happen. Thank you very much for coming to talk to us.
:06:52. > :06:56.Let's take a look at some of the other stories
:06:57. > :07:02.Greece's parliament has approved a new package of austerity measures
:07:03. > :07:04.needed to release the next instalment of its
:07:05. > :07:09.Protesters clashed with police in central Athens as MPs voted
:07:10. > :07:11.on the tax rises and further cuts to pensions.
:07:12. > :07:19.Eurozone finance ministers meet on Monday to decide if Greece has
:07:20. > :07:23.done enough to receive a E7.5 billion loan plus debt relief.
:07:24. > :07:25.Brazil's stock market has plunged amid corruption allegations
:07:26. > :07:31.The main Ibovespa index closed down more than 8.8% -
:07:32. > :07:33.trading was briefly halted earlier in the day after losses of more
:07:34. > :07:37.than 10% prompted circuit breakers to kick in.
:07:38. > :07:41.President Temer was forced to deny a newspaper report that he had given
:07:42. > :07:43.consent to paying off a witness in a huge corruption scandal.
:07:44. > :07:45.The Supreme Court has authorised an investigation
:07:46. > :07:56.Leaders from the APEC group of Asia Pacific nations are gathered
:07:57. > :08:08.They are pushing to save the Trans-Pacific Partnership trade
:08:09. > :08:12.Pulling out of it was of course the first action of President Trump.
:08:13. > :08:25.Good to see you. This is the 11 nation is now going, you know what?
:08:26. > :08:28.Maybe we can do this without the United States!
:08:29. > :08:33.Yes, it will be an interesting meeting because on the one hand you
:08:34. > :08:37.have the countries hoping to be part of the TPB originally now scrambling
:08:38. > :08:41.to salvage it in some way, shape or form, and on the other hand the US
:08:42. > :08:45.trade representative who will represent the president, as you
:08:46. > :08:48.mentioned, who seems to have far more protectionist impulses than his
:08:49. > :08:54.predecessors. Many ministers will try to get face time with him to see
:08:55. > :08:58.if there is wiggle room with his America first policies and to seek a
:08:59. > :09:02.bit more clarity about what they mean, but it seems pretty unlikely
:09:03. > :09:06.might see coming out of this meeting might see coming out of this meeting
:09:07. > :09:11.but we at least might get a sense of whether the TPP is completely dead
:09:12. > :09:18.or maybe just a little bit alive, and there will also be discussions
:09:19. > :09:22.on the sidelines of the regional economic comprehensive partnership,
:09:23. > :09:26.China's competitive to the TPP. Even Nafta might come up given that
:09:27. > :09:30.Canada and Mexico will be there as well so a lot of the agenda will be
:09:31. > :09:32.keeping a close eye and we will be interested to see what comes out of
:09:33. > :09:35.it. We will talk to use them, have a
:09:36. > :09:42.great weekend! Let's quickly stay with the markets.
:09:43. > :09:46.That was the Dow yesterday closing on Wall Street, Asian market
:09:47. > :09:50.slightly higher. This is pretty much of the back of the better
:09:51. > :09:56.performance we saw overnight on Wall Street. A moderate recovery. If we
:09:57. > :10:01.look at Europe, following suit at the moment, but let's not forget the
:10:02. > :10:04.Trump slump has not fully gone away because the scandal surrounding the
:10:05. > :10:09.President's Administration is still pretty much in the headlines.
:10:10. > :10:13.On Thursday, the Trump administration notified Congress
:10:14. > :10:15.that it will start talks to renegotiate the North America
:10:16. > :10:18.Free Trade Agreement "as soon as practicable".
:10:19. > :10:22.President Trump has called the 1990s Nafta deal with Canada and Mexico
:10:23. > :10:24.a 'killer' of US jobs, and made shaking it
:10:25. > :10:28.It's a big worry for Mexico's huge auto industry and the global
:10:29. > :10:29.car-makers that have invested heavily there,
:10:30. > :10:41.The auto industry here has been booming for more than 20 years.
:10:42. > :10:44.The country is now the fourth largest car exporter in the world.
:10:45. > :10:55.It was meant to be a shining example of free trade, but today it's
:10:56. > :10:57.a monument to Donald Trump's brand of protectionism.
:10:58. > :11:00.These steel beams are all that's left of a $1.6 billion investment
:11:01. > :11:08.that Ford was making to build a plant here.
:11:09. > :11:15.Jose Puebla Ortiz shows me the deed to the land he sold to Ford.
:11:16. > :11:18.With the money, he bought a truck to work on the Ford plant.
:11:19. > :11:21.For a while, life was good - but it didn't last.
:11:22. > :11:24.TRANSLATION: Some people came to the plant and sent us home.
:11:25. > :11:26.They said there was no entry any more.
:11:27. > :11:29.The trucks couldn't go in any more, it all collapsed.
:11:30. > :11:32.Not just for the truckers but for everyone.
:11:33. > :11:38.Ford is keen to emphasise the market forces which drove the decision
:11:39. > :11:41.to abandon its plant in San Luis Potosi, but CEO
:11:42. > :11:44.Mark Fields admits presidential rhetoric is also a factor.
:11:45. > :11:47.At the end of the day, we have to do what's right
:11:48. > :11:49.for our business and of course the administration and the Congress,
:11:50. > :11:52.they have the ability to look at tax policy,
:11:53. > :11:53.trade policy etc, and that's the business
:11:54. > :12:02.And now Donald Trump has set about renegotiating the entire
:12:03. > :12:05.North American Free Trade Agreement, or Nafta, but a more protectionist
:12:06. > :12:08.US administration could undoubtedly do great harm to many livelihoods
:12:09. > :12:15.Michelle Fleury, BBC News, San Luis Potosi.
:12:16. > :12:17.Joining us is Lucy MacDonald, CIO, Global Equities
:12:18. > :12:31.Thank you for coming in. Let's talk about the Trump slump that we have
:12:32. > :12:35.seen this week. There has been some reversal in the markets, why is
:12:36. > :12:47.that? Two reasons, one is that the level of cash is still quite high,
:12:48. > :12:52.around 5%, so there is cash available and I think the second
:12:53. > :12:55.reason is corporate profits are still quite strong so the earnings
:12:56. > :13:00.season is coming through, broadly across the world we have seen
:13:01. > :13:04.companies upon earnings but also on sales. Those two things mean there
:13:05. > :13:10.are some fundamental underlying strengths, despite the fact that you
:13:11. > :13:14.do have relatively high valuations in the US in particular and the
:13:15. > :13:18.prospect of liquidity being taken out of markets by the Fed. So it is
:13:19. > :13:30.going to be between those two factors, in the meantime volatility
:13:31. > :13:34.was very low, we have had increasing spikes of volatility and I think we
:13:35. > :13:40.will get more of that. I noticed yesterday we saw a lot of the
:13:41. > :13:45.emerging market currencies go... I asked an expert, why are they
:13:46. > :13:49.dropping? He said, the US. Emerging economies rely on US growth, if the
:13:50. > :13:53.US isn't growing, they are not growing. That is right, yesterday
:13:54. > :13:59.the trigger was Brazil, and when there is a concern things tend to
:14:00. > :14:04.correlate, you get the rising volatility and a rise population and
:14:05. > :14:11.that is what we saw, so all emerging markets behaved as if they were
:14:12. > :14:14.Brazil, so in the long term you are right, they depend for their growth
:14:15. > :14:19.on the US. You are going to come back later?
:14:20. > :14:22.We will be talking about some of President Trump's policies,
:14:23. > :14:25.including perhaps paid maternity and paternity leave for families in the
:14:26. > :14:26.US. We will have to see. We look back at the past
:14:27. > :14:29.week in business, when US markets had their worst day
:14:30. > :14:32.since the presidential election, and the economy was the main
:14:33. > :14:36.focus in the UK election. That's all ahead with our business
:14:37. > :14:40.editor, Simon Jack. You're with Business
:14:41. > :14:54.Live from BBC News. One of Britain's airports
:14:55. > :14:56.is moving its control tower around 100 miles away
:14:57. > :14:59.from the actual runway. London City Airport is to become
:15:00. > :15:02.the first in Britain to abandon its bird's-eye view
:15:03. > :15:04.of the runway and use digital technology to
:15:05. > :15:06.monitor planes remotely. They say it will make managing
:15:07. > :15:17.the planes safer and more efficient. Theo Leggett can tell us
:15:18. > :15:30.more about whether this Yes, that is what they are saying.
:15:31. > :15:33.At the moment at London City Airport as with many others, the controller
:15:34. > :15:38.is looking after the aircraft when it are on the ground, their
:15:39. > :15:41.movements had to be choreographed carefully as you can imagine and it
:15:42. > :15:46.is done by people looking out of the window basically. What the British
:15:47. > :15:50.air traffic control people are trying to do is, instead of having
:15:51. > :15:54.that tower with people looking out of the window, you have a whole
:15:55. > :15:58.range of high definition cameras and the images from them will be beamed
:15:59. > :16:03.onto a large screened against the wall in this remote controlled
:16:04. > :16:06.centre. These are not small screens like with CCTV monitoring stations,
:16:07. > :16:11.they are big things that look like Windows and they are piping in sound
:16:12. > :16:16.as well so for the controllers it is as if they are there themselves. And
:16:17. > :16:21.on those screens, they will be able to put up radar data and things like
:16:22. > :16:25.that to make their life easier. What they are saying is that this will be
:16:26. > :16:29.a better solution than having people in a control tower at London City
:16:30. > :16:38.Airport looking out of the window. We have seen what cyber attacks, the
:16:39. > :16:42.havoc they can wreak on services, so what about air traffic control, is
:16:43. > :16:47.there not a risk of blackout? This is the obvious concern when you do
:16:48. > :16:50.anything remotely but the people in charge of this say that it is proven
:16:51. > :16:56.technology, it has been used in Sweden since 2015, and they say they
:16:57. > :17:01.have a lot of redundant system so if one part, if it goes down, another
:17:02. > :17:03.can take over and they say it will be absolutely safe. Obviously safe.
:17:04. > :17:19.Thank you. Lyon, the healthy fast food chain,
:17:20. > :17:25.wants to take on the US. They are helping to fund expansion with a ?25
:17:26. > :17:33.million investment of cash? We will see if it works.
:17:34. > :17:38.France gets ready for Macron economics.
:17:39. > :17:41.But does the new president have the right formula to bring
:17:42. > :17:51.The S 500 and the Dow saw their biggest one-day
:17:52. > :17:53.fall since September, this week, as investor hopes for tax
:17:54. > :17:56.cuts and other pro-business policies faded after reports that US
:17:57. > :17:58.President Donald Trump tried to interfere with a federal
:17:59. > :18:04.investigation, setting off alarm bells on Wall Street.
:18:05. > :18:06.And here in the UK, the Conservatives launched
:18:07. > :18:08.their election manifesto, with social care shake-up as one
:18:09. > :18:13.With all parties having pledged their election manifestos,
:18:14. > :18:15.what do they mean for people and the economy?
:18:16. > :18:20.Well, let's find out with our business editor Simon Jack.
:18:21. > :18:29.We have dragged Simon in on a Friday. I'm always here on a Friday!
:18:30. > :18:34.Before we talk about the UK manifestos, let's touch on the Trump
:18:35. > :18:39.slump. I was interested in what Lucy had to say, we should put it in
:18:40. > :18:43.context, there was the worst one-day fall for many months on Wednesday,
:18:44. > :18:50.down 373 points, but it has been on a hell of a tear them up 16% since
:18:51. > :18:54.the election. When you have had a run like that, people look for
:18:55. > :18:58.moments to take some chips off the table and bank some profit. We have
:18:59. > :19:02.also had incredibly low volatility which is unusual. People got
:19:03. > :19:07.skittish about it. What matters is what you mentioned about a tax
:19:08. > :19:11.reform, if people think that is in jeopardy, that has been driving the
:19:12. > :19:15.market, yes, corporate earnings, but the idea that the burden on
:19:16. > :19:23.businesses will be reduced by major tax reform. Everybody seems to agree
:19:24. > :19:27.in the US that that needs to happen. Even though Donald Trump might be
:19:28. > :19:31.having his troubles with his FBI director and what have you, if you
:19:32. > :19:35.thought the tax reform plan was in danger you would see some falls in
:19:36. > :19:39.the stock market. It looks pretty well valued and a lot of people
:19:40. > :19:44.think it looks a bit hot. And looking ahead to possible
:19:45. > :19:49.interest-rate rises by the Fed next month, still likely that will
:19:50. > :19:55.happen. The market are figuring 70, 80% probability of that happening
:19:56. > :19:58.and also, as bonds begin to fall at interest rates go up, some people
:19:59. > :20:02.are thinking that one of these days, the great rotation from buying
:20:03. > :20:07.bonds, people say it has been a good market for a while, this is
:20:08. > :20:12.government debt. As interest rates go up and inflation begins to pick
:20:13. > :20:16.up, stocks are more attractive because you get a bit of inflation
:20:17. > :20:19.protection because the goods and services companies sell go up in
:20:20. > :20:26.line with rising prices. It is a much more inflation safe investment.
:20:27. > :20:33.A better return at the end of the day. Quickly switching gears, the UK
:20:34. > :20:39.political parties, their manifestos are out, the election pledges. On
:20:40. > :20:43.this menu of options, some strong flavours compared to previous years.
:20:44. > :20:50.You have the Labour Party wanting to nationalise the railways and
:20:51. > :20:54.renationalise the Royal Mail and get involved in the energy companies. A
:20:55. > :20:58.very left-wing agenda from the Labour Party. What you would expect
:20:59. > :21:02.from Jeremy Corbyn who has been setting that store ad for some time
:21:03. > :21:07.but what is perhaps more contract that swagger more surprising, the
:21:08. > :21:12.Conservatives used to say, the markets get on with it -- what is
:21:13. > :21:16.more surprising. A massive change in tone, they are saying Babel capped
:21:17. > :21:22.energy prices and get involved in markets, have a close look at any
:21:23. > :21:25.takeovers make sure they are any public interest. Much more of a
:21:26. > :21:32.lurch to the left the right if you like. I have family visiting from
:21:33. > :21:37.Australia, and they were saying, they were stunned. If they are
:21:38. > :21:42.watching, they are lefties, labour, but they are saying that the Tory
:21:43. > :21:47.manifesto is something like the Labour Party. It could read like an
:21:48. > :21:50.old Labour Party manifesto and the interesting thing is, businesses I
:21:51. > :21:54.have been talking to chief executives and getting their
:21:55. > :21:57.reaction, and they say at the moment they feel pretty friendless, being
:21:58. > :22:02.duffed up from the left and the right! Nobody wants or needs
:22:03. > :22:07.business endorsement at the moment. The political climate has changed
:22:08. > :22:10.and hanging out with the most rich and powerful people, the tourist
:22:11. > :22:14.used to be relaxed about it but they may have realised it does not go
:22:15. > :22:17.down well also -- the Tories used to be relaxed. The business community
:22:18. > :22:20.is feeling a bit worried that their interests are not being noted. Thank
:22:21. > :22:22.you very much. In a moment we'll take a look
:22:23. > :22:25.through the business pages, but first here's a quick reminder
:22:26. > :22:32.of how to get in touch with us. The businesslike page is where you
:22:33. > :22:40.can stay ahead with all the breaking business news -- the Business Live
:22:41. > :22:44.page. We will have analysis from all of our editors around the world. And
:22:45. > :22:52.we want to hear from you as well, get involved on our web page on the
:22:53. > :22:59.BBC website. We are on Twitter and you can find us on Facebook.
:23:00. > :23:01.Business Live on TV and online whenever you need to know.
:23:02. > :23:03.What other business stories has the media been
:23:04. > :23:06.Lucy MacDonald, CIO, Global Equities at Allianz Global Investors
:23:07. > :23:16.Thank you for coming back, you have been going through the pages and the
:23:17. > :23:23.interesting stories in the Washington Post is that the US could
:23:24. > :23:27.get the first family benefit under President, but will we see this
:23:28. > :23:30.given the spotlight on the federal investigation? Will this be a policy
:23:31. > :23:37.he can push through? It would be quite radical. Will any of them get
:23:38. > :23:41.through?! The tax reform is most important, but this is catching up
:23:42. > :23:46.with the rest of the civilised world. 21st-century America. Getting
:23:47. > :23:52.a bit more support for working parents really. That is what we have
:23:53. > :23:56.in Europe. And we can see that it is entirely compatible with business
:23:57. > :23:59.working well. And it has come at a point where there are a lot of other
:24:00. > :24:02.federal cuts going on across-the-board and it seems like
:24:03. > :24:09.it is Ivanka Trump that is pushing this through. That is what is said
:24:10. > :24:12.and it's not ridiculous. For the uninitiated who might not know the
:24:13. > :24:18.American system, they get two weeks, a mother gets two weeks of maternity
:24:19. > :24:23.and paternity probably doesn't exist. It really is not very
:24:24. > :24:31.civilised. Compared to what is in Europe. What have you chosen for the
:24:32. > :24:38.second story? This is a fizzy drink that is taking Australia by storm!
:24:39. > :24:48.Have you heard of this? It is a new fizzy drink that is low sugar and it
:24:49. > :24:54.is giving Coca-Cola run its money. There is real opportunity here.
:24:55. > :24:56.There is and you can see it across the food and factoring areas with a
:24:57. > :25:03.trend towards healthy food and drink. That is not surprising. I
:25:04. > :25:12.haven't actually had any myself so I can't comment. I will have to ask my
:25:13. > :25:29.Australian family, I have never heard of it. It is green the base.
:25:30. > :25:38.It is seems like the healthy eating market is the way to go. It is a
:25:39. > :25:41.clear trend. In all consumer markets, it is a very long
:25:42. > :25:47.structural trend and it doesn't surprise me. Have a great weekend,
:25:48. > :25:52.we did not even talk about the painting. 110 million!
:25:53. > :26:02.Aaron is launching his new show in the afternoon soon, it is his last
:26:03. > :26:13.day today. Goodbye! The last half year or so across the
:26:14. > :26:14.UK the weather has