22/05/2017 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Thompson.


President Trump leaves Saudi Arabia with hundreds


of billions of dollars of trade deals for the United States


Live from London, that's our top story on Monday, 22nd May.


Is it a simple win the for the United States economy


or is there a bigger cost of doing business in Saudi?


We will talk you through what's at stake.


Also in the programme, Hong Kong's


flagship airline makes it biggest change of course for 20 years,


but can job cuts land the saving Cathay Pacific needs?


A new trading week is under way. The debt crisis in Greece is back in


focus. We'll tell you all you need to know.


And we'll be getting the inside track on one man's effort


It might look like a kid's toy, but with some of the biggest names


in music want to get their hands on it, we meet the man


So today we want to know, what was your first


Let us know. Just use the hashtag BBCBizLive.


We begin with US President Donald Trump who is about to leave


That's his next stop on his foreign tour.


Over the weekend in Riyadh he signed agreements worth hundreds


of billions of dollars between Saudi and American firms.


The deals are said to be worth more than $350 billion over the next ten


years and build on America's decades-long alliance with


Now Saudi Arabia is trying to diversify its economy away


from oil after crude oil prices slumped by half over


And among the US firms trying to work with Saudi


Arabia's private sector the likes of Honeywell,


A key part of the agreement is a $110 billion arms deal


which the White House says is the single biggest in US history.


It will supply a range of military items including planes,


ships, sophisticated radar and precision-guided bombs.


The arms deal is part of a tough stance that Mr Trump appears


to be taking on Iran, a move that will please


It is in sharp contrast to his predecessor Barack Obama,


who in 2015 signed the nuclear deal with Iran.


Speaking on Sunday, Mr Trump singled out Iran for criticism,


accusing it of fuelling sectarian conflict and terror


Until the Iranian regime is willing to be a partner for peace, all


nations and countries must work together to isolate Iran, deny it


funding for terrorism, cannot do it and pray for the day when the


Iranian people have the just and righteous Government they so richly


deserve. Esfandyar Batmanghelidj is the


Founder of the Europe-Iran Forum. Let's talk about the deal. A big


deal that Trump has been keen to hail as a successful outcome of that


trip. It was began by Obama, but $110 billion, what do you make of


the deal? Well, I think the deal and the Riyadh summit was largely an


opportunity for Saudi Arabia to demonstrate that they are


controlling sort of the US approach to Middle East policy and the size


of the deal, $110 billion is a transparent attempt to put a price


tag on the US-Saudi strategic relationship. If you look at it from


the prospect of Saudi's rival Iran, it is an amount they cannot match.


The only comparable deals Iran has with the United States are two


pending contracts with Boeing for the sale of commercial aircraft,


those amount to merely $11 billion. So we're talking about ten times


more economic value that Trump is delivering at the summit. I suppose


if you're Boeing, it is still good news to have an $11 billion deal,


but you're right, in terms of financial influence and therefore,


economic and political influence, Iran can't compete with Saudi


Arabia? That's it. On a company by company basis Iran remains an


attractive market for US companies. The companies that were just


mentioned Honeywell and General Electric are looking at the Iranian


market and there is significant investment, but the overall picture


is clear if money is what's going to talk for Donald Trump, Iran will


have a hard time getting their influence heard in Washington and so


they will have to find other avenues and rely on other international


partners to anchor their relationship in the international


community. An important time for Iran too, of course, a time of big


change in terms of the elections, change and no change depending on


which way you look at it, but crucially, Iran is able to look


further afield after lifting of sanctions, it is back in from the


cold. It has more opportunities. Opportunities that don't rely on the


United States? I think so. The incumbent president won a resounding


victory on Friday. There was 72% voter turn-out, he won nearly 60% of


the vote and elections are a rare occurrence in the Middle East and


don't take place in Saudi Arabia. So in some ways it was an opportunity


for Iran to put their best foot forward and demonstrate that they


are not simply the malign influence in the Middle East that Donald Trump


has portrayed them as in his speech. So where will Iran are looking next?


Europe is the key destination. The fact that President Trump has so


quickly alined himself with a particular Saudi view of how the


Middle East should be alined has opened up space for Iran to really


re-engage with Europe at' deeper level of foreign policy and say that


not only are there potential economic opportunities, but there is


an opportunity to create a more constructive agenda for relations in


the Middle East at large and president Rahane was re-elected


because the Iranian people believe that he is able to advocate for them


on that stage. Really interesting stuff. It's a fascinating one for us


to follow. It is really good to talk to you.


Let's take a look at some of the other stories making the news.


The Japanese technology and telecoms giant Softbank says it has closed


the first part of its massive investment fund after having


Masayoshi Son who is the company's founder only launched it in October.


Apple, Foxconn and the soverign wealth funds of Saudi Arabia


and the United Arab Emirates are amongst those to have committed


money to the fund which aims to invest make long-term investments


Airbus has appointed a panel of independent consultants after UK


regulators launched a bribery investigation looking


The aerospace firm says that the panel


which consists of former European ministers will be given access


The UK Serious Fraud Office's investigation follows a similar


Leaked documents have revealed the ethical policies carried out


According to the Guardian newspaper, the company does NOT instruct


employees to remove content showing violent death,


The news comes amid calls for Facebook to play a bigger role


in censoring content which some users may find offensive.


A quick look at the Business Live page for you. There is one story in


town as far as the United States is concerned. Ford relaying their Chief


Executive Mark Fields. It follows a major reshuffle at the car maker.


The New York Times now reporting this. This comes after poor sales,


falling profits for the car maker, a 40% decline in its share price. So


Ford's boss out it seems. We will talk more about that later.


Let us focus on Hong Kong's flagship airline Cathay Pacific


is going to carry out it's biggest shake-up in 20 years.


It means hundreds of job losses and comes after last years losses


which were only the third full year losses in its seven


So another reshuffle, Cathay really trying to do something different


after that significant loss? Yes, you have to remember this is under


its new CEO as well. They're getting rid of 600 employees as part of this


revamp. Now, remember this is Cathay is Asia's biggest airline. 600 jobs


going away, the majority of whom will actually be told today and most


of these will be back office staff, no pilots, no crew and no front line


staff will be affected, but a quarter of management positions at


the headquarters will go. Cathay are trying to get back into the black.


They're hoping for cost savings. 30% from these measures and they say


they expect a restructuring to be done by the end of the year. Air


traffic is growing quickly, but there is a lot of competition and a


lot of budget carriers and other premium airlines from the Middle


East are coming into the scene and people are not paying for first


class seats as well. So while the passenger traffic is growing, the


margins are going very low for Cathay and the other premium


carriers in this region. Thanks, Chris teen. We know well the


difficulties some major airlines are facing in the current markets. It is


extremely competitive right now. A good session for markets in Asia.


Following on from a strong close in Wall Street and Europe. Oil stocks


doing well and energy shares doing well. The price of oil edging


higher. We have got an Opec decision expected in Vienna and many are


betting they will continue production cuts for longer and


perhaps even more so. So that's pushing. The price of oil. Let's


look at Europe right now. We have got the Greece discussions about its


debts happening today in Brussels. There is talks that they may talk


about Brexit divorce bills today in Brussels. We shall see about that.


That's possibly a speculation. You can see Europe mixed, but also, of


course, we've got Federal Reserve minutes released on Wednesday. There


is a lot happening this week. And Samira Hussain has


the details about what's ahead Joining us is Trevor Greetham,


Head of multi asset at Royal London Deere will be reporting on Friday.


So low farm income in North America, its biggest market will weigh on


sales. But, profits are expected to get a boost because of cost-cutting


measures including lowering job cuts and lowered production taking in the


previous years. The world's largest soup maker Campbell will be


reporting earnings. But Campbell's See Fresh Business was hit by an


early harvest of baby carrots and the company had already said last


quarter that it does not its See Fresh Business to grow for the rest


of the year. Joining us is Trevor Greetham,


Head of multi asset at Royal London Let's talk Greece. Eurozone


ministers start talking about the next round of debt relief because


some loans come due in July? That's right. There is 7 billion euros due


in July and the talks are about is whether the various creditors can


agree to lend Greece money to pay back some of the earlier debts that


it owes and in particular the IMF, the International Monetary Fund for


which Greece is the biggest ever bail out they have got involved in,


they want Europe to shoulder more of the burden by extending the dur rags


of the loans and basically allowing Greece to spend more time to pay the


money back. Will the IMF achieve that goal and get more help from


Europe as it were or will Germany and others keep digging their feet


in? Greece was asked to do various reforms. Now it is the creditors


agreeing amongst themselves what Europe has to do to get the IMF


money in. It seems likely it will happen. It is worth bearing in mind


the Greek economy is 25% smaller than it was ten years ago. It hadn't


grown for the last five years. We have got unemployment of 23% and


really to make the euro area work you probably need to see more


leaning in from other European countries when a country is in


difficulty and Greece seems quite small, but Italy is out there and


that's a big country with lots of debt as well. A lot of speculation


that Germany, that was always the hardliner as far as what Greece


needed to do in return for the money might be softening? I wouldn't call


it softening! There is a likelihood that I think that the Greek debts


will be extended to 20 years. The IMF was asking if they could cap or


freeze the amount they have to pay back each year and the Germans are


opposing that. So it is a bit of hard and soft. I think there will be


a deal. People are putting it at 50/50 today. We have a quietish week


this week, but I say that today, it's Monday and anything can happen!


But what are you watching out for? What's on your radar as we head


towards the summer months? We have got an election in June. There is a


lot going on. The markets are generally more prone to shocks and


moved side ways over the summers, so what we're looking out for are signs


of what is going on in China, it looks like the economy is slowing


down, we are concerned about geopolitical shocks. I think it will


be an opportunity to buy dips over the summer, the stock markets pay


pull back. The longer term picture is looking good because interest


rates are low and the reason there has been an eight year expansion is


wage inflation which is low. Central banks are relaxed to keep the money


flowing. Oil back up. It's about $54 a barrel


for the first time in a month. But could it be the next


big musical invention. With some of the biggest


names in music trying to get their hands on it -


we meet the man behind Stay tuned and we will explain how


all of this works. 9,000 people who lost money


on shares in Royal Bank of Scotland begin a High Court action today


demanding compensation from the bank and four former directors


including Fred Goodwin. The claimants say they were misled


by the bank when it sought to raise ?12 billion from shareholders


in April 2008, a few months before it had to be rescued by taxpayers


because it was running out of money. Our economics correspondent, and the


Verity, is in the newsroom. We have run through the headlines, but


explain what we're talking about. Fred the shred will not be there


today but he will be appearing on polling day. He is a presence there


because he was in charge of Royal Bank of Scotland, which also


contains NatWest, in 2008 when it ran into big problem lie trouble. --


into big trouble. Tens of thousands of shareholders were asked to put


their hands into their pockets in April of 2008, the biggest


fundraising exercise ever at the time. They asked employees of the


bank, who were offered loans in order to buy those shares. What


happened is the shareholders say that they were misled because there


are misleading statements in the prospectus for that fundraising and


there were also serious omissions. They were not told that internally


the bank knew that if it could not borrow on the money markets, it


could run out of money within a day. The shareholders say that obviously


if they had been told that, they would not have handed over the money


and the rights issue would not have happened. These things take a long


time to come to court. RBS has been trying to settle with people even as


recently as this weekend but so far it seems they have not succeeded


completely. Do we know how this will play out? Those who were looking for


compensation asking for over ?500 million in compensation. What is


likely to be the outcome? Do we know? It depends on whether the bank


would succeed in settling. They have a strong case, the shoulders. RBS


will say that they are going to defend this vigorously. They think


they have a strong case to answer. But obviously we have a whole bunch


of bad news from the past which is going to come back up and the bank


really does not want that. It does not want Fred the Shreds to be


appearing. This is business life. President Trump is on his way out of


Saudi Arabia and he has done serious deals. He is heading to Israel now.


A quick look at other markets are faring. A quiet start to the week


but we will keep an eye on how the numbers are performing. The pound


against the dollar, nearly $1. Now let's have a musical interlude.


Our next guest is the man behind this -


the Seaboard - it's a futuristic version of the piano.


It lets you press down parts of the keys to change how they sound.


His firm has already raised nearly $30 million in funding,


attracting interest from musicians as diverse as Stevie Wonder


and German composer Hans Zimmer - famous for his music scores.


Entrepreneur Roland Lamb is the founder and chief executive


of ROLI and the inventor of the Seaboard.


His childhood was far from ordinary - Roland was home schooled


in rural New Hampshire, learning the piano early -


his jazz pianist father taught him when he was a toddler.


He started his first business - a jazz cafe for students -


while attending Summerhill, an alternative British school.


Roland's mixed globe-trotting and studying, learning Buddhism


in Japan, working as a visual artist and a jazz musician around the world


before settling in USA, to study classical Chinese


Roland moved back to the UK to study again, earning


a PhD in Design Products, where he dreamt up a new type


of keyboard, a futuristic instrument called the Seaboard.


In 2013, he built his first prototype and founded his


I am out of breath, there are so many things on your CV! Lets just


introduced the man. Welcome, Rowland. That is an incredible CV. I


want to ask you about all the other stuff. Tell us what it is and how it


works. This is our newest product, and it is an abolition of the


concept I developed Kolbe Seaboard. As a jazz musician, when I play the


piano, I wanted more expression and I was jealous of the saxophone


players and guitarists and so on. I came up with the idea of the


Seaboard, and now it is used by musicians all around the world to


add expression to how they play. But I wanted to make this more


expressible -- accessible, because acoustic measurements are difficult


to learn. Electronic music is still quite technical so we built this,


which uses the same technology as the Seaboard, meaning you can use


intuitive gestures to vary the pitch and volume of what you are playing,


so rather than being an on off note, you will not quite hear the down


note but you might get some sense of it. As press, I am changing the


timbre and I add vibrato. And then the lights can guide me. It can


enable me to play different scales. Basically this takes that more


expressive technology of the Seaboard and put it in everyone's


hands. Does anyone else do something similar? There are so many


synthesisers and electronic gadgets that replicate musical instruments


out there, there are loads. Does anyone else do that where you can


use your finger to create the expression as you described? Not


really. There are a few different instrument makers picking about this


problem of how we make electronic music more expressive. There is a


fellow called Roger Linn who developed the drum machine, and


there are people who have worked on this but we are the first company


leading the charge, trying to bring the depth of expression of acoustic


instruments into the world of the digital, because that sound was just


being controlled by my thumb, which means I can leveraged everyone's


some as a musical device. Just by adding on a very expressive


controller. The point is that that is scalable and you can attach these


panels, you can make a bigger. That's right, it is a modular system


so if I connect in another block, it will sync with this and then I can


do other things, so for example I was just saying about the different


scales, no if our press this button is which is the lighting, or I can


use it to record play. I can use this for expressive performance and


also production. So the likes of Stevie Wonder and others have got


the Seaboard, which is more like piano keyboard, more like what


pianists are used to using. But that is totally different. I tried to


play that in the green room and I got nowhere. It was bizarre.


Definitely it is new. For electronic musicians, like Steve Aoki and other


DJs, they are already using blocks, but for traditional musicians it is


a little bit of a jump, if you know the piano for example it is a jump


to come to something like this that is laid out so differently. Briefly,


you have attracted a lot of funding already. What will you do with the


next round of funding? We are continuing to build out this system


of blocks, it is modular so we can of blocks, it is modular so we can


have other blogs that fit into the system and we can focus on the


development of the app. We have just launched on android last week, and


so getting the app onto more forms is the next. It is so good to see


what I want to ask you so many other but time is brief as always. I know


we did not quite do it justice with the sound but it sounds much more


professional elsewhere. Better than my attempts in the green room. But


then he is the pro! Here are some top tips for those who want to run a


business. The business live website will keep you up-to-date with all


the news from the BBC's team of editors around the world. And we


want to hear from you. Get involved on the BBC business live web page:


And you can find us on Facebook, at BBC business use. -- BBC business


news. Dominic is joining us from our business team. He is quite known in


the UK, because he ran for for quite a long time. He is best-known for


hairdo, Mark Fields. He had a mullet hairdo that would have made Chris


Waddle the football approach. He has lost it as he has become more


senior. He is a big car enthusiast. Why is he going? He has been trying


to restructure Ford. He took over from Alan Mullally, who saved for


from a financial crisis. He is the only one who did not go to the US


government for assistance during the financial crisis. Mullally remade it


been trying to get across rudderless been trying to get across rudderless


cards and the Ford boards do not think is going across fast enough.


-- he has been trying to get across driverless cars. Thank you for your


time this morning. Bye-bye. Good morning. May is technically a


spring month but I have to say, through the week ahead it is often


going to feel like summer. This is how the week started for


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