:00:00. > :00:00.This is Business Live from BBC News with Susannah Streeter
:00:07. > :00:09.The Americans may be marking Independence Day today,
:00:10. > :00:11.but does the world's biggest economy have much to celebrate
:00:12. > :00:13.now that the CEO president is in charge?
:00:14. > :00:35.Live from London, that's our top story on Tuesday 4th July.
:00:36. > :00:38.As global leaders prepare to meet later this week as part of the G20,
:00:39. > :00:40.today we're going to look at whether Donald Trump's
:00:41. > :00:43.policies are a step forward for the world's biggest economy.
:00:44. > :00:45.Also in the programme, The billionaire co-founder
:00:46. > :00:47.of struggling Chinese technology giant LeEco has had
:00:48. > :00:54.We're live in our Asia business hub with the details.
:00:55. > :01:06.And we've got the latest from the markets.
:01:07. > :01:09.And get comfortable, because we'll be getting
:01:10. > :01:14.It's the product you've probably never heard of that luxury brands
:01:15. > :01:20.And as the American owner of Shredded Wheat completed
:01:21. > :01:24.we want to know, what do you love to eat for breakfast?
:01:25. > :01:40.It's the 4th of July and while Americans will be
:01:41. > :01:42.taking the day off to mark Independence Day,
:01:43. > :01:44.the Republicans and Democrats will have differing views
:01:45. > :01:46.on whether the state of the country's economy gives
:01:47. > :01:53.The self-styled CEO President wants America to grow by 3% a year -
:01:54. > :01:58.With growth currently at just 1.6%, how exactly does
:01:59. > :02:05.Central to his plan is the renegotiation of US trade deals.
:02:06. > :02:07.The Trump administration now says that it plans
:02:08. > :02:10.to start talks over the North America Free
:02:11. > :02:12.Trade Agreement "as soon as practicable".
:02:13. > :02:16.Similarly, the President has pulled out
:02:17. > :02:17.of a global climate agreement, saying
:02:18. > :02:20.he will not be part of a deal that disadvantages US
:02:21. > :02:24.Mr Trump is also trying to push through a new healthcare deal
:02:25. > :02:26.which is estimated to bring federal deficits down by $119bn -
:02:27. > :02:30.but crucially would also leave 23 million people without health
:02:31. > :02:34.So could these and other aggressive policies give
:02:35. > :02:48.They have now downgraded growth forecasts to 2.1%.
:02:49. > :02:50.Emeritus Professor of Gresham College and Chairman
:02:51. > :03:07.Let's start with that 3% that Donald Trump is aiming for. Can he do it?
:03:08. > :03:11.It doesn't look likely. Business confidence remains resilient, but
:03:12. > :03:15.they are still praying for lower taxes and lower regulation. But the
:03:16. > :03:20.US is a consumer driven economy and consumer confidence remains in the
:03:21. > :03:25.doldrums. Politics is part of the problem. President Trump was sworn
:03:26. > :03:28.in on the 20th of January, so it has been five and a half months. His
:03:29. > :03:33.campaign was very forthright and emotional. He has a majority in the
:03:34. > :03:39.House. You would think that by now, he should have achieved a lot. What
:03:40. > :03:43.is your perception of the situation? The striking thing about the Trump
:03:44. > :03:49.presidency from a policy perspective is the absence of policy. He rode
:03:50. > :03:54.this populist wave that he could solve America's problems with a few
:03:55. > :03:58.big solutions, simple solutions that only he was able to do because he
:03:59. > :04:04.wasn't going to pander to vested interests or the politically
:04:05. > :04:11.correct. And the absence of anything that has changed anything is a
:04:12. > :04:13.problem for consumers. He has also been waged by this health care bill.
:04:14. > :04:22.Failed to get it through the first time. In the meantime, his plans to
:04:23. > :04:25.tax cuts which would help reinvigorate the economy for
:04:26. > :04:31.corporate America have been pushed into the long grass. There are two
:04:32. > :04:35.problems. One is his inability to get things done. Secondly, what he's
:04:36. > :04:39.trying to get done is not clear. It is not clear that the health care
:04:40. > :04:43.plan will be good for the economy. The US has a productivity problem
:04:44. > :04:50.and good health care and good education are important for web
:04:51. > :04:59.activity. -- for productivity. We have seen a boom from President
:05:00. > :05:01.Trump's election, but it was deregulation that markets were
:05:02. > :05:07.looking for that has not happened yet. Well, in the election campaign
:05:08. > :05:12.we had this delusion that by cutting taxes, somehow the tax revenues
:05:13. > :05:15.would grow larger because they have incentivised the economy so much. We
:05:16. > :05:22.have lots of evidence to say that is not the case. The debts are still
:05:23. > :05:28.quite big. So he is not going to get through a big public spending
:05:29. > :05:38.campaign through Congress. So he wants 3%. The IMF said it will be
:05:39. > :05:40.2.1. It will be between 1.5 and 2%. Thank you, Avinash Persaud.
:05:41. > :05:43.Let's take a look at some of the other stories making the news.
:05:44. > :05:46.Energy-rich Qatar said on Tuesday it plans to increase natural gas
:05:47. > :05:48.production by 30% over the next several years, as it faces
:05:49. > :06:01.pressure from its neighbours in a diplomatic crisis.
:06:02. > :06:06.A system failure at the Nasdaq stock exchange has caused the share price
:06:07. > :06:08.of some of the world's biggest companies to be set
:06:09. > :06:11.This caused Amazon's market value to fall by over 87%,
:06:12. > :06:13.while Microsoft's share price soared by 79%.
:06:14. > :06:23.Nasdaq says the glitch was caused by improper use of testing data.
:06:24. > :06:26.Australia's central bank has kept its benchmark cash rate at 1.5%
:06:27. > :06:30.The decision by the Reserve Bank of Australia was widely expected
:06:31. > :06:36.after recent concerns about financial stability.
:06:37. > :06:41.Chinese technology giant LeEco - that had hoped to topple Tesla -
:06:42. > :06:44.has had its assets frozen in a row over an unpaid loan.
:06:45. > :06:58.What more can you tell us? The company might not be a household
:06:59. > :07:02.name outside China, but it's an exciting company that was known as
:07:03. > :07:07.the Netflix of China. Then as you mention, they started drawing
:07:08. > :07:12.comparisons with the likes of Apple and Tesla when it started branching
:07:13. > :07:15.out into hardware like smart TV, smartphones and even electric cars.
:07:16. > :07:20.But just after it started selling devices in the US last year, the
:07:21. > :07:28.company's cash crunch also started to get attention. Today, assets of
:07:29. > :07:34.the company's chairman and his wife and three affiliates worth over $180
:07:35. > :07:40.million have been frozen by a court. The ruling comes after a company
:07:41. > :07:43.failed to pay interest that was due on bank loans taken out to fund its
:07:44. > :07:49.smartphone business. The chairman has admitted previously to
:07:50. > :07:52.shareholders that the financial problems were more severe than
:07:53. > :07:56.expected. He has not commented on today's latest developments, but it
:07:57. > :08:05.goes to show how expensive all those new innovations are. Thank you.
:08:06. > :08:07.Let's look at the financial markets now.
:08:08. > :08:09.Asian shares turned lower as earlier gains were quashed by tensions
:08:10. > :08:12.on the Korean peninsula after North Korea fired a missile
:08:13. > :08:24.A system failure at the Nasdaq stock exchange caused the share price
:08:25. > :08:26.of some of the world's biggest companies to be set
:08:27. > :08:38.This caused Amazon's market value to fall by over 87%.
:08:39. > :08:41.Nasdaq says the glitch was caused by improper use of testing data
:08:42. > :08:50.and no trades were completed at those prices.
:08:51. > :08:53.Let's take a look at what's happening in Europe -
:08:54. > :08:56.there were expectations that Britain's FTSE 100 and Germany's DAX
:08:57. > :09:04.Joining me is Jane Sydenham, Investment Director,
:09:05. > :09:18.Let me start with the Nasdaq, that great story. It feels like we are
:09:19. > :09:23.hearing more stories of fat fingered trades or glitches in the system. Is
:09:24. > :09:26.it something traders now need to take into consideration? I think it
:09:27. > :09:31.is, because so much trade is automated and high-speed. So the
:09:32. > :09:36.technology is important and traders need to be aware that not everything
:09:37. > :09:41.works perfectly all the time. It is interesting that it is the tech
:09:42. > :09:46.stocks that have been hit. There is growing unease about technology
:09:47. > :09:49.stocks in general. It seems that their financial stocks have gone
:09:50. > :09:54.through torrid times and now the focus is back on tech, do you think
:09:55. > :09:58.it could be the end of a bubble that we have seen? One of the reasons
:09:59. > :10:02.technology stocks have done so well is that they are genuinely growing
:10:03. > :10:06.companies in what has been a relatively low growth environment.
:10:07. > :10:09.But because it feels as though interest rates are starting to rise
:10:10. > :10:15.and economies are strong enough to withstand a bit of an increase in
:10:16. > :10:19.rates, in that environment where banks have been so undervalued for
:10:20. > :10:23.so long and some people would say they look quite cheap and tech
:10:24. > :10:27.stocks look expensive, there is a bit of a transition going on. People
:10:28. > :10:33.are beginning to say, maybe I should dip my toe back into the financial
:10:34. > :10:37.sector. And do you think with all these regulatory decisions made on
:10:38. > :10:40.the tech stocks, like the Google decision made by the European
:10:41. > :10:44.Commission, that big find that it was hit by, do you think that will
:10:45. > :10:49.have an impact going forward? It may. If we look at what happened to
:10:50. > :10:54.Microsoft, that was quite a point for them. It is too early to say if
:10:55. > :10:59.that will be a transition, but it's possible. It is all about news flow.
:11:00. > :11:02.If we see lots of positive news for sectors, that will support share
:11:03. > :11:08.prices. If the news becomes negative, the opposite is true.
:11:09. > :11:13.Let's talk about oil. It has had a good run. Yes, the best run for five
:11:14. > :11:18.years in terms of eight successive days of rises as a result of
:11:19. > :11:23.reduction in the rig count of American shale oil and gas, which
:11:24. > :11:28.now seems to be the thing that oil traders are watching, rather than
:11:29. > :11:31.the pricing via Opec. It is interesting how quickly they can
:11:32. > :11:39.ramp up production and an ease off the pedal when the oil price doesn't
:11:40. > :11:43.look so attractive. Absolutely. It is amazing how technology has made a
:11:44. > :11:46.difference in that industry both in terms of bringing the costs of
:11:47. > :11:50.production down, but also the sensitivity to turn off the supply
:11:51. > :11:54.tap, which used to be a hard thing to do. We were talking about the
:11:55. > :11:58.American owner of shredded wheat dying Weetabix. What is your
:11:59. > :12:13.favourite breakfast? I am a measly girl, sorry! -- I am a muesli girl.
:12:14. > :12:16.Still to come, the luxury product you've probably never heard of.
:12:17. > :12:19.We're going to be talking about Alcantara and its use
:12:20. > :12:21.in everything from supercars to private jets.
:12:22. > :12:27.You're with Business Live from BBC News.
:12:28. > :12:35.British chip company Imagination Technologies has
:12:36. > :12:36.announced a 19% increase in revenues.
:12:37. > :12:39.But the results are overshadowed by its continuing dispute
:12:40. > :12:40.with its biggest customer, Apple, who announced
:12:41. > :12:42.in April that they are stopping using the chips?
:12:43. > :12:44.Theo Leggett is in our business newsroom.
:12:45. > :12:50.It's been a tough year for the company, hasn't it?
:12:51. > :12:56.Absolutely, and the answer to your question is yes. Look at the share
:12:57. > :12:59.price. This was where it was in March before Apple said it wasn't
:13:00. > :13:03.going to be using Imagination's intellectual property and its
:13:04. > :13:07.designs for chips any more. And here is what happened to the share price
:13:08. > :13:11.afterwards. It has not recovered. Nipped up a bit over the past few
:13:12. > :13:16.days because there is talk of the company being sold. But this is a
:13:17. > :13:22.major dispute. Imagination provides the design for chips used in things
:13:23. > :13:26.like iPhones, iPads, Apple TV 's and watches. It provides a good stream
:13:27. > :13:32.of revenue through royalty payments. And if Apple stubs using those
:13:33. > :13:37.designs, that royalty stream also stops that provides problems for the
:13:38. > :13:43.company. It provides a great deal of uncertainty. Who might want to buy
:13:44. > :13:50.Imagination Technologies? There are plenty of names in the frame. Apple
:13:51. > :13:55.is one of them. It owns an 8% stake at the moment. There is talk of a
:13:56. > :13:59.Chinese company potentially being interested, and Intel as well.
:14:00. > :14:03.Although it has problems, Imagination has been talked about
:14:04. > :14:08.for years as one of the UK's leaders in technology and it does still have
:14:09. > :14:20.useful intellectual property. Thank you.
:14:21. > :14:25.Sainsbury's is up 2.3%. Their chief executive says the market is
:14:26. > :14:39.competitive. Big supermarket chains are finding
:14:40. > :14:42.life to be tough. Could there be another round of takeovers?
:14:43. > :14:53.Sainsbury's is apparently in talks to buy Imagination Technologies a
:14:54. > :14:57.wholesaler and Nisa. The drive for cheaper groceries. The discount is
:14:58. > :15:00.also performing pretty well. Interesting Sainsbury's is not doing
:15:01. > :15:03.too badly either. A quick look at how
:15:04. > :15:20.markets are faring.... Look at how they have opened in
:15:21. > :15:29.Europe. A bit of a sea of red following on from falls in Asia. The
:15:30. > :15:35.FTSE 100 currently down. Asia falls took place after an uplift earlier
:15:36. > :15:37.in the session following the news that North Korea have fired a
:15:38. > :15:39.missile into the waters off Japan. And now let's get the inside track
:15:40. > :15:43.on a type of material that you may but you may have sat
:15:44. > :15:46.on it, or even worn it! Alcantara is a synthetic
:15:47. > :15:48.suede-like material, One of its main selling
:15:49. > :15:52.points is its durability, alongside its similarity
:15:53. > :15:53.to real suede. If you're lucky enough to own
:15:54. > :15:56.a Lamborghini, Porsche, yacht, or even a private jet,
:15:57. > :15:58.you'll probably have come across their product which is used
:15:59. > :16:00.as an interior trim. Alcantara is protected by several
:16:01. > :16:04.patents and is produced by its Italian parent company,
:16:05. > :16:09.also called Alcantara. Joining us is Andrea Boragno,
:16:10. > :16:21.chief executive officer Thank you for joining us in the
:16:22. > :16:28.studio. My pleasure. Let us talk about the product, the type of
:16:29. > :16:32.material... Very innovative. As a result of proprietary technology.
:16:33. > :16:37.Very versatile. It can be resented in countless different ways. We
:16:38. > :16:42.started in the fashion industry, in the 70s, Versace and other important
:16:43. > :16:51.fashion designers using Alcantara, then we moved into interiors and
:16:52. > :16:55.then the automotive industry. Nowadays, because of the versatility
:16:56. > :17:00.of the material and because of the properties of being presented or in
:17:01. > :17:06.countless different ways, we are expanding more and more in many
:17:07. > :17:09.business sectors. The last one where we are growing significantly is
:17:10. > :17:19.consumer electronics and especially information technology.
:17:20. > :17:24.Headphones... In the earpads, we have glasses here. It is carbon
:17:25. > :17:29.neutral as well? Your production process? The first Italian company
:17:30. > :17:33.to be carbon neutral and we have a strong commitment on sustainability
:17:34. > :17:41.and we believe this trend will grow and grow. And talking about growing
:17:42. > :17:44.trends, we are positioning the brand at the intersection of
:17:45. > :17:48.high-performance technology and emotions. The emotion of beauty,
:17:49. > :17:52.something related to design something related to fashion and
:17:53. > :18:00.even to art. Which is why you have been at the Festival Of Speed.
:18:01. > :18:07.Exactly. We are very pleased about this participation with the London
:18:08. > :18:15.design Festival in partnership with... We wanted to put together
:18:16. > :18:24.the best of the UK design together with Italian excellence. For several
:18:25. > :18:29.years, we have had a very intensive and fruitful relationship with the
:18:30. > :18:35.world of design, of creative people, and even artists, it is a relation
:18:36. > :18:43.of give and take. For designers, Alcantara becomes the means by which
:18:44. > :18:52.they express their creativity and very often, Alcantara becomes the
:18:53. > :18:58.integrating part of the creative process and as they return, we have
:18:59. > :19:02.a lot of ideas. So important it became an integrated part of the
:19:03. > :19:08.business. The business proposition, in Italy, do you think that is the
:19:09. > :19:15.right way to go to luxury products to revitalise the economy? It is a
:19:16. > :19:18.global trend, not only in Italy. It is an advantage to some extent
:19:19. > :19:22.compared to other countries. We believe and we have been practising
:19:23. > :19:26.the positioning of the brand at the intersection between technology and
:19:27. > :19:34.emotion. We think there is a growing trend of this. And the market once
:19:35. > :19:40.exclusivity and top quality is not enough -- and the market wants
:19:41. > :19:46.exclusivity. For me, top quality is boring. You need luxury and emotion.
:19:47. > :19:48.The motion and luxury. That is what the market wants. We need breakfast.
:19:49. > :19:51.Thank you. Let's talk about gender equality
:19:52. > :19:53.because a new report from the Wharton Business School
:19:54. > :19:55.says venture capitalists who provide funding for start-ups
:19:56. > :19:57.have an inbuilt bias From New York,
:19:58. > :20:11.Samira Hussain reports. It is loud, dark and it is popular
:20:12. > :20:15.with women. That popularity has propelled this brand of stationary
:20:16. > :20:22.cycling from a single studio to a national phenomenon and soon it will
:20:23. > :20:26.debut on the public stock exchange. But does its dependence on women
:20:27. > :20:32.speak to the wider trend of women starting female focused companies? I
:20:33. > :20:36.believe ultimately what investors are looking for businesses with
:20:37. > :20:40.sound fundamentals, have you proven you are able to consistently grow
:20:41. > :20:43.your business and are you making returns on your capital? Studies
:20:44. > :20:48.have shown women are more reluctant to get into business. And a good inn
:20:49. > :20:57.is solving a problem you face personally. That was how the camp
:20:58. > :21:04.and alternative was born. -- tampon. I was terrified of becoming an
:21:05. > :21:09.entrepreneur. The chance of success is slim to none but I was facing a
:21:10. > :21:14.deep personal problem and I knew I had to solve it. But if female
:21:15. > :21:20.entrepreneurs only focus on solving their own problems, or catering to
:21:21. > :21:25.women, they risk reinforcing the same stereotypes that have plagued
:21:26. > :21:28.women in business for years. The stereotypes and preconceptions about
:21:29. > :21:34.what men and women are good at and the traits they possess more
:21:35. > :21:38.exaggerated than reality. I think in most businesses, in reality, men and
:21:39. > :21:44.women are relatively create likely to have the traits needed to be
:21:45. > :21:49.successful but it is the perception. Less than 5% of Fortune 500
:21:50. > :21:52.companies have female CEOs and while more women than ever are starting
:21:53. > :21:58.businesses, it is still far less than men. If the economy is ever
:21:59. > :22:01.going to receive the full benefits of gender equality, everyone will
:22:02. > :22:09.need to rethink what businesses women can succeed in. Time to look
:22:10. > :22:14.to see what other stories have been making the news today. Dominic
:22:15. > :22:18.O'Connell joins us. Starting with the story in the Financial Times
:22:19. > :22:22.come UK ministers calling for post-Brexit cooperation with the EU.
:22:23. > :22:27.Quite an extraordinary story. When was the last time you can recall two
:22:28. > :22:32.Cabinet ministers writing an open letter to the Financial Times that
:22:33. > :22:34.was not a response to anything, lead letter, it is all about the
:22:35. > :22:39.relationship between Britain and Europe when it comes to approving
:22:40. > :22:44.drugs? They are saying, giving assurances the drug companies, big
:22:45. > :22:50.industry in Britain, worth about ?60 billion a year to the UK, assurances
:22:51. > :22:53.the old way of approving medicines, done in collaboration with European
:22:54. > :22:58.regulatory authorities, it will not be damaged by Brexit talks. How can
:22:59. > :23:02.they say this? The ECJ, the European courts, they are part of the whole
:23:03. > :23:06.regulatory apparatus and one of the points of Brexit is we do not want
:23:07. > :23:10.European courts to have any say in European chilly UK affairs. If we
:23:11. > :23:13.did go down that road, the UK might become yet another international
:23:14. > :23:19.market and not part of the centre of the drugs world and it is a careful
:23:20. > :23:28.line. This will appeal to those after a hard Brexit, blue --
:23:29. > :23:32.complete absence of control of the ECJ? It talks about prioritising
:23:33. > :23:35.patients and the best possible way of approving medicines without
:23:36. > :23:39.saying, yes, we will still be in Europe when it comes to approving
:23:40. > :23:43.drugs. If you make that concession, the European regulators will still
:23:44. > :23:46.hold sway over the pharmaceutical industry, in the car industry, the
:23:47. > :23:51.aerospace industry, the City of London, they will say, why can't we
:23:52. > :23:57.have that too? It is a very tricky can of worms, if I can mix in
:23:58. > :24:03.metaphor. A can of worms, that is not what you want for breakfast.
:24:04. > :24:08.What did you have? Porridge. I had porridge at 2am. You are virtuous. I
:24:09. > :24:13.had a piece of Victoria sandwich sponge cake. A sneaky slice. A story
:24:14. > :24:22.in the Times about an American company which has just bought
:24:23. > :24:27.Weetibix. Amanda says on Twitter, a full English, would be her favourite
:24:28. > :24:31.breakfast, but the reality is porridge. Nothing beats a sausage
:24:32. > :24:36.sandwich! It is either Victoria sponge or a bacon Sahni! The reason
:24:37. > :24:42.the Americans are buying it because the Chinese bought Weetibix thinking
:24:43. > :24:44.the Chinese diet would change to more Western-style processed
:24:45. > :24:49.carbohydrates like Weetibix but it did not work. The Chinese company
:24:50. > :24:53.has sold it to the Americans who of course have tastes which are much
:24:54. > :24:56.more in line with British tastes, eating breakfast there are real. The
:24:57. > :25:01.Chinese have proved quite stubborn, they have not adopted Weetibix, as
:25:02. > :25:06.they thought they would do. Is this any more concern in terms of
:25:07. > :25:11.takeovers for the UK? It already was in Chinese hands, it had fallen to
:25:12. > :25:15.foreign companies already and given we have sold our ports, airports,
:25:16. > :25:20.power companies, we not that bothered about a breakfast is a real
:25:21. > :25:27.maker! This is a picture of a viewer's breakfast cereal. Oh, dear!
:25:28. > :25:32.They have obviously got a hard day coming up. Or they have been on a
:25:33. > :25:38.night shift. Anyway... I think it has to go to porridge. It seems as
:25:39. > :25:40.Weetibix. Interestingly, some Weetibix. Interestingly, some
:25:41. > :25:55.Weetibix was impounded in New Zealand. Slip of the time, I grew up
:25:56. > :26:00.in New Zealand and I said Weetbix. Weetibix was impounded, brought in
:26:01. > :26:08.by British rugby supporter. We will have to leave it there. Bye-bye.
:26:09. > :26:14.Good morning. A North- south split in the weather over the next couple
:26:15. > :26:17.of days. Northern areas, it will be quite cool at times. But it is going
:26:18. > :26:18.to turn much