:00:00. > :00:09.This is Business Live from BBC News with Alice Baxter and Ben Bland.
:00:10. > :00:11.Can President Trump make French ties great again?
:00:12. > :00:15.With pressure over climate change and trade will there be a meeting
:00:16. > :00:42.Live from London, that's our top story on Thursday 13th of July.
:00:43. > :00:48.These were the pictures about half an arrogant in Paris whether US
:00:49. > :00:52.president has just arrived to be guest of honour at France's bastille
:00:53. > :01:00.day celebrations. Plus free trade with the world's used the economy is
:01:01. > :01:04.also up for discussion side of the world, with the US saying it wants
:01:05. > :01:07.to renegotiate with South Korea. The latest from the markets where Asia
:01:08. > :01:11.extended a bit of a global rally, responding well with some data. Here
:01:12. > :01:17.in Europe, a bit of a mixed picture. And we'll be getting
:01:18. > :01:19.the inside track on how one man's made a sparkling success of British
:01:20. > :01:22.wine, despite the industry being overshadowed by its French
:01:23. > :01:24.rivals for so long. And as a court rules
:01:25. > :01:26.on whether checking potential employees social
:01:27. > :01:28.media is legal, let us know, would you be happy for a recruiter
:01:29. > :01:31.to look through your social media? In the last hour, the US
:01:32. > :01:49.President Donald Trump He's there to celebrate the French
:01:50. > :01:56.holiday of Bastille Day But as the White House put it, he'll
:01:57. > :02:04.be looking to build on the countries It comes as President Macron told
:02:05. > :02:08.a French newspaper this his country "must reform its economy
:02:09. > :02:15.to give it more vigour". The leaders will discuss the EU's
:02:16. > :02:17.trading relationship with the US, Last year, they sold each other
:02:18. > :02:29.this: $686 billion worth of goods. The problem for President Trump
:02:30. > :02:35.is it's tilted in Europe's favour. It runs a surplus with the US -
:02:36. > :02:38.in other words, it sells more goods to the US than the other way around
:02:39. > :02:44.- by this much - $147 billion. Which brings us to this:
:02:45. > :02:46.the Transatlantic Trade Talks on the massive free trade deal
:02:47. > :02:54.between the EU and US have been suspended since Mr Trump
:02:55. > :02:56.came to power. The business world will
:02:57. > :03:05.be watching closely. As it will on this -
:03:06. > :03:07.the Paris climate change accord - Mr Macron says he will be pressing
:03:08. > :03:11.Mr Trump to sign up again, Another source of transatlantic
:03:12. > :03:16.tension - European pressure on the big US tech firms
:03:17. > :03:26.over tax avoidance. But on Wednesday, a French court
:03:27. > :03:29.ruled that Google is not liable And there might be
:03:30. > :03:38.more common ground. Mr Trump has demanded
:03:39. > :03:39.European members of Nato Mr Macron agrees -
:03:40. > :03:46.he's pledged to increase France's defence spending to Nato's
:03:47. > :03:48.target of 2% of GDP, Cloe Ragot is a France
:03:49. > :03:57.analyst with Eurasia Group, who advise businesses on political
:03:58. > :04:11.risks. Cloe, a very good welcome to
:04:12. > :04:15.Business Live. Just before we get onto it, I just wonder, these are
:04:16. > :04:18.two men, similar back story, the ground in the corporate world who
:04:19. > :04:21.have then gone on to take the top job in politics but very different
:04:22. > :04:27.personalities. How do you think that will play out in these discussions?
:04:28. > :04:32.They both have an interest to actually work together, so I think
:04:33. > :04:37.despite all the disagreement, as we know, on climate change, on trade,
:04:38. > :04:45.and also to some extent on defence, I think they will just avoid those
:04:46. > :04:51.topics and focus, for instance, on, you know, more trade relation, and
:04:52. > :04:57.also on counterterrorism. One of the things that we touched on just there
:04:58. > :05:04.was the trade deficit that the US has with the European Union. It has
:05:05. > :05:06.been a clarion call that Trump has gone back to time and time again,
:05:07. > :05:11.that he doesn't like these imbalances. What hope do you think
:05:12. > :05:15.there is, then, of getting him to restart talks on the Transatlantic
:05:16. > :05:20.Trade and Investment Partnership, a free-trade deal, when there already
:05:21. > :05:26.exists this imbalance? I think it is actually very unlikely that the
:05:27. > :05:33.talks will restart while Trump is in power. I think one of the main
:05:34. > :05:38.platforms actually off is to fight against this tax avoidance, so you
:05:39. > :05:46.also mentioned Google, it is very unlikely that they would find some
:05:47. > :05:52.agreements in the short-term. We also mentioned earlier the discord
:05:53. > :05:56.over climate. Trump very publicly pulled the United States out of the
:05:57. > :06:05.Paris accord. Macron has been very vocal in his approval and that. --
:06:06. > :06:10.in his approval of that. Macron hopes he will be able to persuade
:06:11. > :06:18.Trump to come back into the Paris agreement. However, we actually
:06:19. > :06:22.don't think that Trump will rejoin the Paris agreement, and that is
:06:23. > :06:27.exactly also one of the main reasons why it was quite surprising that he
:06:28. > :06:31.was invited for the 14th of July. 13th and 14th of July in France.
:06:32. > :06:34.Such an important day in France, yes. Thank you very much, Cloe.
:06:35. > :06:37.Let's take a look at some of the other stories making the news...
:06:38. > :06:42.The maker of Havaianas - perhaps the world's most famous
:06:43. > :06:48.brand of flip-flops - has been sold for $1.1 billion.
:06:49. > :06:51.The company which owned it is looking to raise cash
:06:52. > :06:54.after being caught up in Brazil's corruption scandal.
:06:55. > :06:56.Havaianas are one of Brazil's best-known international brands,
:06:57. > :07:01.with over 200 million pairs of flip-flops sold per year.
:07:02. > :07:10.The boss of Qatar Airways says it still plans, despite the US airline
:07:11. > :07:14.is deciding to terminate the pair's are sharing agreement. On Wednesday
:07:15. > :07:18.American airline said it was ending its co-share deal with both Qatar
:07:19. > :07:22.airlines. It said it believed the two were getting a legal state
:07:23. > :07:22.subsidies, something which they denied.
:07:23. > :07:30.Irish business leaders have called for a the European Union to provide
:07:31. > :07:33.a state aid programme worth more one billion euro state aid programme
:07:34. > :07:36.from the European Union in order to protect Irish firms in the event
:07:37. > :07:39.The Irish Business and Employers Confederation said that if Britain
:07:40. > :07:42.left the customs union, it would massively disrupt trade,
:07:43. > :07:45.Britain is Ireland's largest trading partner,
:07:46. > :07:55.The US has said it wants to renegotiate what it's calling
:07:56. > :07:57.a lopsided trade deal with South Korea.
:07:58. > :08:11.Monaco, tell us more. The news is not much of a surprise to the South
:08:12. > :08:14.Koreans. The President met with the Trump administration in Washington
:08:15. > :08:17.just last month, and may walk away with a message that the US felt that
:08:18. > :08:25.the free trade agreement is not a great deal. South Korea is a major
:08:26. > :08:27.US economic partner, more than $144 billion of goods and services was
:08:28. > :08:38.traded between the two countries last year. In 2012, the Obama
:08:39. > :08:41.administration said the FDA would boost its businesses, but exports
:08:42. > :08:45.have declined almost 3% since the deal went in effect, and at the same
:08:46. > :08:49.time imports from South Korean companies have increased by about
:08:50. > :08:53.23%. The US Trade Minister said yesterday he wants to have talks
:08:54. > :09:01.with the Moon administration within 30 days, however that might be a
:09:02. > :09:07.problem for the South Koreans. President Moon is yet to appoint the
:09:08. > :09:11.top trade post and it may not be filled in time. Thank you, let's
:09:12. > :09:17.stay in the region. Let's stay in the region now
:09:18. > :09:20.where some Asian shares scaled They took their cue from Wall Street
:09:21. > :09:24.which posted record peaks. That followed the testimony of Fed
:09:25. > :09:27.chief Janet Yellen who sounded more doveish than many had expected -
:09:28. > :09:30.talking of a gradual approach to tightening as the US continues
:09:31. > :09:32.to grapple with low inflation. Equities were underpinned
:09:33. > :09:34.by a drop in bond yields Sentiment also got another boost
:09:35. > :09:38.when China reported upbeat data Only Japan's Nikkei was somewhat
:09:39. > :09:42.restrained by a firmer yen Here in Europe, markets have
:09:43. > :09:45.also opened slightly up. We're expecting news out
:09:46. > :09:57.from ASOS and Astra Zenica. And Michelle Fleury has
:09:58. > :10:13.the details about what's ahead One of the major US airlines, Delta,
:10:14. > :10:15.reported second -- reports second-quarter earnings this
:10:16. > :10:19.Thursday. Wall Street hopes it will point to clear skies ahead. Last
:10:20. > :10:23.week, the carrier said its revenue per passion Joe was up, helped by
:10:24. > :10:28.improving average fares. -- per passenger. The number two US airline
:10:29. > :10:32.by passenger traffic is expected to post a rise in quarterly profit.
:10:33. > :10:36.Another company turning in its report card is Cargill. Full-year
:10:37. > :10:41.results for the privately held global commodities trader are likely
:10:42. > :10:44.to get a boost, thanks to healthy exports of US beef, but a glut of
:10:45. > :10:50.global seeds, that is likely to weigh on its agricultural business
:10:51. > :10:57.division. American central banker Janet Yellin delivers her second day
:10:58. > :11:00.of monetary policy testimony to the Senate bank committee. On Wednesday
:11:01. > :11:04.she told US lawmakers that interest rates would not have to rise all
:11:05. > :11:09.that much further to reach the third's mutual level, and that's
:11:10. > :11:12.sent stocks and the Dow to record levels.
:11:13. > :11:15.Joining us is Jane Foley, senior currency strategist at Rabobank.
:11:16. > :11:23.Janet Yellin's testimony, much awaited, and it has, you know,
:11:24. > :11:27.caused some movements, as expected. Certainly, and really was the tone
:11:28. > :11:31.of her comments. The Federal Reserve have been hiking interest rates for
:11:32. > :11:33.a while and this year they have done it twice, and their official
:11:34. > :11:36.guidance suggested we would do it again this year and maybe three
:11:37. > :11:40.times next year, but of course inflation in the year has been
:11:41. > :11:44.required benign, as in most other countries, apart from the UK.
:11:45. > :11:48.Yesterday, Janet Yellin gave me a little bit of good news. She sort of
:11:49. > :11:51.implied that maybe she was a bit more concerned about inflation and
:11:52. > :11:54.she had previously been, and suggested that maybe they may not
:11:55. > :11:59.therefore hike interest rates this year. Good the stock markets, good
:12:00. > :12:05.for risk and that is what the market reacted to. It pushed the Dow to a
:12:06. > :12:10.record high close. Yes, and softened the dollar a little bit as well. You
:12:11. > :12:22.are quoted on this story in the FT this morning. Canada, the Canadian
:12:23. > :12:27.dollar, the Looney, I love that term, rocketing for the first time
:12:28. > :12:31.in seven years. Again, this Israeli interesting, in the context of all
:12:32. > :12:34.the developed countries and missed the session of whether they will
:12:35. > :12:38.hike interest rates more generally. The market was anticipating this,
:12:39. > :12:42.they had a couple of comments from the governor and the deputy governor
:12:43. > :12:44.suggesting that they might, but what surprised the market was the
:12:45. > :12:48.statement that accompanied that interest rate hike, because they
:12:49. > :12:51.seem to suggest they would do it again, even though their inflation
:12:52. > :12:56.target is roundabout 2% and then inflation rates are round 1.3. So
:12:57. > :13:00.they are suggesting what is bearing down in Canada in inflation is
:13:01. > :13:09.temporary, and interestingly the Fed is saying that as well. But every
:13:10. > :13:17.country in the GTN, temporary... Inflation is quite benign, but not
:13:18. > :13:19.at the place had previous economic cycles abroad. See you later to go
:13:20. > :13:20.through some business papers. We'll meet the man making
:13:21. > :13:27.a sparkling success of English wine despite the industry
:13:28. > :13:29.being overshadowed by its I think we get to try some here on
:13:30. > :13:39.Business Live! Southern Rail owners GTR have been
:13:40. > :13:49.fined ?13.4m for poor performance. The firm has experienced waves
:13:50. > :13:52.of industrial action on its Southern rail route over the past year,
:13:53. > :13:54.much to the continuing Theo Leggett is in our
:13:55. > :14:09.Business Newsroom. Fiola, tell us more. OK, well, as
:14:10. > :14:13.anybody who has travelled on southern over the past year has
:14:14. > :14:17.known it has had a pretty rough time of it. 58,000 services or
:14:18. > :14:20.thereabouts were cancelled last year, and on various occasions the
:14:21. > :14:24.network came almost to a grinding halt. The biggest factor in that was
:14:25. > :14:30.a dispute between GTR and train staff. The unions, who claimed that
:14:31. > :14:34.the company's attempts to try and make drivers responsible for opening
:14:35. > :14:38.and closing doors and changing the role of conductors was unsafe. That
:14:39. > :14:42.was the biggest factor in all the delays. There were others. What the
:14:43. > :14:45.government has been doing is examining whether or not GTR was in
:14:46. > :14:52.breach of its franchise agreement, and they have imposed this fine of
:14:53. > :14:56.?13.4 million, and suggested at the same time that, although there were
:14:57. > :15:00.problems at Southern, most of them or not the franchise operator's
:15:01. > :15:03.fault. And therefore the fine could have been a lot higher, if they
:15:04. > :15:06.decided that the industrial action and all that kind of thing was the
:15:07. > :15:12.responsibility of the franchise holder. It appears they have decided
:15:13. > :15:14.that is the case. Is that is why Southern has been penalised, but
:15:15. > :15:20.what response has there been to this decision? It will come as a relief
:15:21. > :15:25.to the majority owners of GTR, go-ahead group. Have a look at this
:15:26. > :15:28.graph, in February they issued a profits warning and the share price
:15:29. > :15:33.came crashing down. That profits warning was largely due to problems
:15:34. > :15:38.at Southern. So for go-ahead group to get this behind them, and to say
:15:39. > :15:41.that it could have been a lot worse, that is good news. Obviously the
:15:42. > :15:46.unions are taking a different viewpoint. The RMT has come out and
:15:47. > :15:47.said this is a whitewash. Consumer groups don't seem too happy about it
:15:48. > :15:58.either. Plenty more on the website. It is
:15:59. > :16:04.updated throughout the day. The story on the other moment, Mike
:16:05. > :16:10.Ashley of Sports Direct, he has bought a 25% stake in computer
:16:11. > :16:19.gaming group. Two weeks ago, shares plunged after issuing a profit
:16:20. > :16:29.warning. You can read all about it on the business pages online. You
:16:30. > :16:33.are watching Business Live. The US president has just arrived in France
:16:34. > :16:39.where trade will feature heavily in his talks with President Macron.
:16:40. > :16:43.Markets have just opened in Europe. A mixed picture. Not necessarily
:16:44. > :16:48.following the global rally we saw in Asia overnight.
:16:49. > :16:51.The thought of wine probably conjures up images of vineyards
:16:52. > :16:55.But increasingly wine from Britain is starting
:16:56. > :17:00.The English wine industry grew 16% between 2015 and 2016
:17:01. > :17:05.with revenues rising to $170 million.
:17:06. > :17:14.By comparison, French wine sales exceeded $13 billion in 2015.
:17:15. > :17:18.We're joined by Charlie Holland, CEO and head winemaker
:17:19. > :17:32.Very warm welcome. Thank you for having me. Particularly warm welcome
:17:33. > :17:39.as you have brought some sparkling wine with you! I will try and do
:17:40. > :17:47.this without making a mess. No one is watching! We mentioned in
:17:48. > :17:54.the introduction that as an English winemaker, do you feel there is a
:17:55. > :17:58.snobbery about your product? Are people asking, why would I buy
:17:59. > :18:02.English when I can buy French, Italian, New Zealand? It used to be
:18:03. > :18:08.the case ten years ago, people said that, but there has been a big
:18:09. > :18:12.change in people's perception towards English sparkling wine. I
:18:13. > :18:15.think one of the reasons is the international competition results we
:18:16. > :18:21.have had over the numbers of years where we have been pitted... The
:18:22. > :18:29.best sound in the world! Pitted against some of the best sparkling
:18:30. > :18:33.wines in the world and people recognise the quality is there now.
:18:34. > :18:41.This is obviously sparkling wine, we just heard the pop, 95% of what you
:18:42. > :18:46.produce is sparkling, why is that? We focus on predominantly sparkling
:18:47. > :18:52.wine. Our climb it really is ideally suited for sparkling wine production
:18:53. > :18:57.-- our climb it. We are able to fully ripe and the grapes but we are
:18:58. > :19:02.able to maintain the acidity which is important for sparkling wine. You
:19:03. > :19:09.mentioned the acidity, that used to be one of the stigmas attached to
:19:10. > :19:11.English wine, it was too acidic. How have you approached that marketing
:19:12. > :19:18.challenge of changing perception? It is about making the best possible
:19:19. > :19:22.product we can. We have some exceptional vineyards and where we
:19:23. > :19:26.are based in the south-east of England, in the Kent countryside,
:19:27. > :19:30.the Garden of England, known for producing some of the best grapes
:19:31. > :19:35.and fruit in the world. The climate is very similar to the wine
:19:36. > :19:42.producing regions of, say, France. Very similar to northern France, in,
:19:43. > :19:47.for example, Champagne. Sparkling wine is what we can compete on a
:19:48. > :19:54.world level at. Has the weaker pound helps? We are seeing a lot of
:19:55. > :19:58.appetite for our wines abroad, we are exporting to 14 different
:19:59. > :20:07.countries. The falling pound is actually quite a good thing for us
:20:08. > :20:12.going to export marks -- markets. Slightly distracted! The UK's
:20:13. > :20:17.climate does not seem to naturally lend itself to some grapes that
:20:18. > :20:22.would necessarily make a nice wine? For sparkling wine, we have the
:20:23. > :20:26.perfect climate. If you were trying to make a blockbuster red wine, that
:20:27. > :20:32.might be more challenging. But for more refined and elegant wines that
:20:33. > :20:39.have a lovely vibrancy to them, our climate is perfect. I feel like it
:20:40. > :20:44.would be rude not to. Cheers! Just to spoil the illusion, they are
:20:45. > :20:50.plastic glasses, for safety, but still... That is lovely. That is why
:20:51. > :20:55.you did not hear the clink. Lovely. Really smooth. Even at this time in
:20:56. > :20:59.the morning, still lovely. Thanks very much.
:21:00. > :21:01.We are also talking about artificial intelligence.
:21:02. > :21:03.It has been accused of threatening everything from jobs
:21:04. > :21:07.It's also being called the most important technology to come
:21:08. > :21:09.along since electricity, and companies are racing
:21:10. > :21:16.Microsoft has outlined a code of ethics.
:21:17. > :21:21.Here's our technology correspondent Rory Cellan-Jones:
:21:22. > :21:28.What if artificial intelligence could see your world and interpret
:21:29. > :21:33.it for you? Microsoft engineer who is blind is showing me a new app
:21:34. > :21:37.called seeing AI designed to help visually impaired people. As well as
:21:38. > :21:41.reading text, it can tell him about the people in front of him, as
:21:42. > :21:48.sometimes he gets it wrong. 50-year-old man looking happy. I am
:21:49. > :21:53.getting younger by the minute! This is an application close to my heart
:21:54. > :21:59.but the general AI is applicable in so many different ways. From around
:22:00. > :22:04.the world, Microsoft scientists came to London to show off their
:22:05. > :22:12.projects. Like this live translation system for presentations. Or
:22:13. > :22:15.software which can search through hours of closed-circuit TV, as well
:22:16. > :22:19.as staking a claim as a leader in this technology, the firm has come
:22:20. > :22:24.up with ethical principles for AI. Microsoft believes we are creating
:22:25. > :22:32.AI to amplify human ingenuity, not to compete with it. The human is the
:22:33. > :22:37.hero. I want to endow you with superpowers. Microsoft is just one
:22:38. > :22:40.of the tech giants battling to profit from advances in artificial
:22:41. > :22:46.intelligence which are giving computers skills once restricted to
:22:47. > :22:50.humans. They are learning to see, one example, driverless cars can see
:22:51. > :22:57.exactly where they are going. They are learning to hear what we say to
:22:58. > :23:01.respond to it. Amazon's Alexa can respond when we asked them to give
:23:02. > :23:06.us the news or recommend a restaurant. They are even making
:23:07. > :23:13.judgments. For instance, on whether a scan shows a malignant tumour. In
:23:14. > :23:17.this battle over this crucial technology, Google and Facebook are
:23:18. > :23:21.spending vast sums on research, but China refuses to be left behind.
:23:22. > :23:27.Investing heavily to build robots who will take over from humans in
:23:28. > :23:31.the vast factories. It looks like AI will transform the economy as it
:23:32. > :23:34.transformed industries, potentially make us all wealthier and happier
:23:35. > :23:38.and the companies who get their first will take the spoils, the
:23:39. > :23:44.rewards. You have to come out loud and strong. Progress in artificial
:23:45. > :23:47.intelligence has been more rapid in recent years than even the
:23:48. > :23:54.scientists predicted and companies like Microsoft know they cannot
:23:55. > :24:00.afford to fall behind. What other business stories have we got? Senior
:24:01. > :24:06.currency strategist joins us once again. One we were picking out, the
:24:07. > :24:11.article in the FT about EU regulators trying to clamp down on
:24:12. > :24:17.prospective employers searching people's social media pages? The
:24:18. > :24:21.story references the fact 60% of employers look at social media in
:24:22. > :24:26.order to get a picture of the potential employee. What this says
:24:27. > :24:30.is that they may not be able to do that. Certainly they should ask the
:24:31. > :24:34.prospective employee for their permission. And even if the data is
:24:35. > :24:39.public, they cannot assume they can use it for their own purposes. We
:24:40. > :24:46.were asking people today to tweet on that topic, how would they feel? A
:24:47. > :24:53.lot of responses. Thank you. Dale says, and intrusion of my privacy,
:24:54. > :24:58.but the posts are in a public setting. Linda says, take a look if
:24:59. > :25:03.you wish. Damian says, an invasion of privacy. Dave says, perfectly
:25:04. > :25:10.happy, I only post things I would be happy to hear about myself on BBC
:25:11. > :25:15.News. How would you feel? Is that something you feel is commonly
:25:16. > :25:19.practised in the financial services? I know that the hiring process in
:25:20. > :25:25.the financial services is very detailed. You have to fit a certain
:25:26. > :25:31.type of person because of the regulator, the criminal potential in
:25:32. > :25:35.the industry. I think the people again, this has just been mentioned,
:25:36. > :25:39.that should be most concerned our young people who might perhaps be
:25:40. > :25:44.doing foolish things, posting them on a chat site, and years later, it
:25:45. > :25:48.comes back to home. I know that at some schools there are warnings
:25:49. > :25:52.going out for the last few years, be careful what you post, these things
:25:53. > :25:57.could be on there for ever and they might not do you good later on. You
:25:58. > :25:59.do not think about that when you 14. Thank you very much. We will see you
:26:00. > :26:14.soon. Thanks for watching. Quite a chilly start for some,
:26:15. > :26:16.especially in rural areas. Largely dry and plenty of sunshine