19/07/2017 BBC Business Live

This is Business Live from BBC News with Ben Bland and Rachel Horne.

Chinese and US officials meet for high-level economic talks.

But with President Trump considering tariffs on steel

Live from London, that's our top story on Wednesday, 19th July.

President Trump hopes the talks can tackle what he sees as an unfair

trading relationship as he seeks to boost the number

car-maker Daimler says it will recall three million

Mercedes-Benz cars to install a software fix.

Here is how the European markets look at the start of the trading

day. We will take a look at what moved the Asian markets and how the

American markets closed. Some of them at all-time highs.

Imagine a sports star and you're probably thinking of someone

at the peak of their physical fitness - not necessarily.

We're looking at the lucrative world of e-sports.

Today, as the UK Government bans businesses from imposing extra

charges for paying by card we want to know, when have you been

surprised by a surcharge and what was it for?

We begin with talks between China and the United States.

President Trump's 100-day deadline for boosting trade with China has

come and gone and officials from both countries are about to

meet in Washington to assess what's actually been achieved.

Mr Trump hopes the talks will tackle what he says is an unfair deal.

It all boils down to this - the US buys more from

Last year the deficit or imbalance in goods was $347

At their first meeting in April Presidents Trump and Xi

set-up trade talks which have already

Both have agreed to expand trade with China saying it would accept US

beef imports and will increase access for financial services.

While in return, the US will allow imports of cooked chicken.

But many issues are still unresolved.

China's factories churned out a record 73-million tonnes

US producers have accused China of flooding the market,

And it's prompted Trump to consider slapping tariffs on steel imports,

part of the administration's emphasis to increase products

Miranda Carr is a senior analyst at Haitong Securities.

Thank you for coming in. What do you expect to come out of today's

meeting? Well, in terms of moves, not a lot. These dialogues have been

set-up and they are a way of easing tensions. You get tensions building

up and up and up and then the dialogues smooth things over, but in

terms of an agreement then probably not on the table. Ben was explaining

there, there has been some opening up of the markets in the last 100

days of beef into America or beef into China and cooked chicken into

America, but really the commodity here that everybody is talking about

is steel. President Trump threatening to slap tariffs on

steel. I mean, if he is prepared to make that move, could that just

knock all the discussions out of the water? Well, it could. Things like

beef and chicken won't make much of a difference to the 347 billion

number, but with steel it has been, so China is exporting less steel,

one-third less steel than it did this time last year. So they have

cut back. They've cut back supply, domestically, and they're cutting

back on exports. So one of the key arguments that Trump, the Trump

administration, the Trump negotiating team has about the steel

flooding into the US, no longer holds so much water. It is similar

with the currency they accuse currency manipulator and then

actually the currency has been appreciating so they're going to

have to shift into some other moves and in terms of putting a quota on

steel, it seems unlikely. Another point of contention between

the two is China's relationship with North Korea. There had about lot of

hope on the Trump side of things that China would help up the

pressure and especially in light of the missile tests and yet we had a

tweet from Donald Trump saying so much for China helping us on that

front. So, the potential sticking point there? Yes, well, the US seems

to be using some of the political Taiwan was an issue about six months

ago and now North Korea, they are ratcheting up the tension on the

political side in order to try to get sort of and conflating it with

trade. This doesn't work quite so well. But in terms of, I mean, the

idea that you're going to get some easy resolution, I mean actually

with North Korea, what China is doing and South Korea taking a lead

there, just recently is probably going to make more of a difference

than the economic talks today. Miranda, thank you very much for

your time. Thank you. Let's take a look at some of

the other stories making the news: Daimler has unveiled plans

to cut vehicle emissions. It's recalling three million

Mercedes-Benz diesel cars, and installing a software fix

on the vehicles. Daimler has been under pressure

from police and prosecutors who are investigating the possible

manipulation of diesel The voluntary fix will cost

the company $250 million and will A supposed boycott of

United Airlines because of the poor treatment of passengers has had

little impact on the company's United revealed its first financial

statement that included the period after staff forcibly removed

a passenger from a plane. Profits of $818 million

for the second quarter is almost 40% higher than the same

period last year. The UK Government has cracked down

on surcharges issued by credit From January next year,

consumers will no longer be charged extra for using their cards,

though they can pass The Treasury estimated that in 2010

alone, consumers spent nearly The move is in line

with European Union rules. We have been looking on our Business

Live page and the in a few hours' time the BBC will reveal a list of

the people who are being paid more than ?150,000. That's maybe

$180,000. There will be 96 people on the list. But an interesting

question here. Should we know what everyone is being paid throughout

business? We have a company that's being interviewed on the BBC saying

at his firm everyone's salaries are transparent and he says it just

becomes the norm and when you come to asking for a pay rise or somebody

has been paid more than you, you know the facts and you can argue

your case. We have a story, censorship over whatsapp disruption

in China. Users of whatsapp raising concerns after disruptions in China.

The Chinese Government hasn't said if it is trying to sensor the

service, but neither has whatsapp suggested that there is a technical

problem. Hong Kong airline Cathay Pacific has

seen shares fall after releasing what the chief executive called

disappointing figures There you are, hello! Why was he so

disappointed by the results? Ben, today Cathay Pacific revealed the

trfk numbers and the CEO had comments that got investors

attention. Rupert Hogg took over the top job in May. He said that Cathay

Pacific's performance in the first-half of the year was

disappointing and its bottom line is under intense and increasing

pressure. He is giving heads up to investors that the numbers won't be

that pretty. This is largely drew to strong competition it's facing from

Middle Eastern airlines such as Emirates and Etihad. They are eating

into the business sector. Cathay Pacific reported its first annual

loss in eight years in 2016 and so Mr Hogg faces a really tough turn

around job at Cathay Pacific. In recent years it has been selling

tickets below cost to keep its planes full. So, now Mr Hogg is

going to under go a huge revamp at Cathay Pacific and hundreds of jobs

are expected to go by the end of the year.

Thank you very much. Optimism about China's economy

helped keep the Asian It also gave commodity

prices a boost. The dollar hovered near its lowest

level for several months with investors betting that any

further interest rate rises The US currency was still

smarting after the collapse of the Republicans' push to overhaul

healthcare dealt a blow to President Donald Trump's ability

to pass promised tax cuts The main European markets have

opened the day higher. Household goods giant

Reckitt Benckiser has confirmed a $4.2 billion deal to sell food

brands including French's mustard and Frank's hot sauces

to US group, McCormick. Shares in Reckitt,

the FTSE 100 listed firm, Interesting to see what

the pound does today. It fell yesterday against the dollar

and the euro key after an unexpected slip in inflation which

dropped to 2.6% in June, That slowdown is seen as easing

pressure on the Bank of England So far in Wednesday trading,

sterling is pretty flat against the dollar,

slightly up against the euro. And Michelle Fleury has

the details about what's ahead Well after Goldman Sachs dragged

down the Dow with it's disappointing fixed income trading performance all

eyes on on Morgan Stanley. The bank which reports second quarter results

this Wednesday is considered Goldman's arch rival in the bond

business. Any weakness in its trading results well they are likely

to be off set by growth in its wealth management division. Look out

for profit figures from American Express. There is a growing battle

with Apple and its expected to weigh on the results of chip maker. The

company warned in April that its profit could be hit as Apple had

decided to withhold royalty payments until legal dispute was resolved.

And should you want a change of pace from company earnings, I can't

imagine why, the US Commerce Department releases its report on

new residential construction in June. Housing stats are expected to

climb to an annual rate of 1.15 million in June, that's after they

tumbled in May. Joining us is Trevor Greetham,

Head of Multi Asset Thank you very much for coming in.

Let's start by talking about UK inflation. It caught people by

surprise yesterday. Remind us of the figures? The inflation rate dropped

from 2.9% to 2.6%, the target is 2%. Both the numbers are above target

and people are looking at the fact that inflation has dropped and

asking themselves is that as high. We think because of the impact of

the sterling weakness after the Brexit vote we will continue to see

inflation pick up probably until about October. So what do you think

caused this blip? You think it is a blip? There is all sorts of things

going up and down in the inflation basket. It is a blip. I wouldn't be

surprised to see inflation more than 3% by October, but will this make

the Bank of England raise interest rates? Well, it is interesting and

it is a global phenomenon the employment rate in the UK is very

low. It is the lowest since the 1970s, but real wage income is the

lowest in 150 years and that's the financial crisis and that's also the

negative impact on real wages of the Brexit vote and the pound going

down. The other global phenomenon is stock markets giding heights. We saw

another record close on Wall Street yesterday. What's going on? How long

can it last, do you think? Well, we have had an eight bull market so far

since the 2009 low, the American stock market is up 260% over that

period, but mull markets don't die of all old age. What kills off a

market like this is inflation and it is wage inflation, when you get a

lot of wage inflation coming through the system, the central banks will

say the economy is too strong and the unemployment rate is to low and

they will raise interest rates. Central Bankers jobs is to take the

punch bowl away from the party just as things get going and on the wages

front, it is not a party. So we have got low interest rates. If China

remains relatively stable and commodity prices keep drifting

lower, this bull market could last longer. If China surges, and we get

more rises in commodity price it starts to fuel the risk of interest

rate. It is steady as she goes for China the markets would like to see.

Trevor, tauch. You're coming back to go through the papers later. Bring a

punch bowl if you can find one! Imagine a sports star and you're

probably thinking of someone at the peak of their

physical fitness. Not necessarily - we're

looking at the lucrative You're with Business

Live from BBC News. People who live in the South East

are better off than people But the gap between the richest

and poorest has narrowed since the recession of 2007/2008

according to a new Andrew Walker is in our

business newsroom. What does the report say happened to

average incomes in the aftermath of the financial crisis? Going back to

just before the crisis and recession really hit in a twist, we have seen

average growth of 3.7% which the IFS describes as being extremely slow.

That makes down a bit into better performances for pensioners

households and that reflects the triple-lock recently. And weaker

performance for people in work on average. We know that is likely to

persist beyond the data reflected in this report. Because we are now in a

situation where real terms average earnings are declining, wages going

up more slowly than prices. Some other striking things, the report

says there has been little change in the level of Apsley poverty over

this period. It describes it has been historically unusual. Also a

striking fact that low income tends to be more persistent than it used

to be. Following composers, people experience sharp changes in income

from year to year. What we're seeing in this report is more recently, a

tendency for that problem to be more persistent. What about inequality,

how is that changed? We have a grasp from the IFS report. We are clearly

in a situation here, this is the national figures, inequality

substantially more than it was if we go back to the early 1980s. But it

has come down from the period just before the great recession. The

really big decline of course has been here in London. That partly

reflects the strength of the labour market. Although incomes are low,

people with jobs, we have low levels of unemployment and that brings

these inequality figures down. Thank you, Andrew.

A lot of great stories, including this one from TalkTalk describing

good growth. Our top story - trade talks

between the US and China kick off in Washington today -

with President Trump hoping they will be able

to tackle what he sees A quick look at how

markets are faring. And now let's get the

inside track on eSports. The word "athlete" may conjure up

images of broad shoulders, and people in the peak physical

fitness. the idea of sporting stardom

is being turned upside down. Professional esports players may not

make as much as Cristiano Ronaldo, but one of the most successful

gamers has bagged nearly $370,000 in prize

money over the course Not bad, but it doesn't stop there -

some of the world's biggest sports teams are now paying gamers

to represent them All of this helps develop

the company's brand and enhance the reputation of eSports

as a whole. Video games are big

business here in the UK. In 2016, the gaming industry raked

in some $3.8 billion - this compares to just $1.4 billion

for the music industry. Fnatic is one of the world's

biggest eSports teams- we're joined by its co-founder Sam

Mathews. Can you explain what esports are? If

you think of sports in general, it is a game you play with the ball, in

a net or over a net and ultimately, esports, it's the same thing. You

can play it, it's a game, but it is available anywhere. All you need is

a device and an interconnection and you can compete. We're talking about

big tournament is happening in major stadiums where there are players on

the pitch as the football players may be but they are gamers with the

hand-held devices and people are filling the stadium is watching them

play. Yes, last weekend, there was one in cologne, there was one in

Cracow, last year, we sold out Wembley Arena faster than the Foo

Fighters. It is a global thing, not just a UK or American sporting, it

is over Asia, it spans the globe. You started a company in 2004. What

is nice about it, you said, most parents will say to the kids, stop

playing the computer game but your mum was completely behind you. I

have an amazing mother. She really got involved. I was 19 at the time,

I sold my car, it was like, what are you doing? I'd better make sure you

don't go into this and lose your money. She was in it for ten years

and she was instrumental in growing our business. You decided to set up

your team so you are a bit like a football manager or an F1 person

running the team. How many members of your team do you have and what

you love for when choosing members? Right now, we are in about eight

different games with about 45 players. We have a team in Kuala

Lumpur for example. We have been in 21 different games in the time we

have been growing this thing. It's a lot different real sport because you

are either in a basketball team or a baseball team and we have this

opportunity to be a brand, we make clothing and make hardware,

headphones as well. We look people but a focus, good at this and

professional. When it comes to looking after your team members, is

there any sort of regulation in this environment? Looking at other major

sports, it is about regulation, good governance, regulating bodies. It is

a little different because each game is kind of its own sport. There is a

regulation in different varying levels per game. However, going

forward, there's going to be the more government intervention I

guess. At the moment, it's quite a free market and its working quite

well. We don't want to repeat any mistakes traditional sports might

have made in the past. You would be open for more regulation? As long as

it made things better. Where do you see your company going? Do you think

it could become as mainstream as some of the sports we talk about,

football, tennis? I think esports are the future of sport. I think at

the moment, the lack of physicality, people think, these guys are just

sitting on their chairs. Virtual reality will change that.

Potentially, you will be watching the real world hunger games but

instead of being in a room like this, it might be on the moon of a

planet. Do you think you will get Olympic status? I think it is

inevitable. In a moment we'll take a look

through the Business Pages but first here's a quick reminder of how

to get in touch with us. We will keep you up-to-date with all

of the latest details with insight and analysis from our team of

editors around the world. We want to hear from you. Get involved on the

BBC Business Live web page and the BBC website. You can find us on

Twitter and Facebook. Business Live on TV and online, whenever you need

to know. Joining us again is Trevor Greetham,

Head of Multi Asset UK Government to ban companies from

adding a surcharge when you try and pay by credit card. Talk this

through what they are saying about it? When you are online buying

tickets or trying to buy clothing and you get to the checkout and it

says how would you like to pay and it says debit card, credit card,

brackets, plus ?2 50, plus ?1 50. That is to be banned in the UK from

the 1st of January. So you won't have that surprise last-minute

charge. Retailers and taxi drivers do the same thing sometimes.

Charging extra for credit cards as they get charged. For processing

credit cards. They will need to recoup the cost somehow. You will

find that you won't get that brackets plus ?2 but prices will

drift higher. These protections do happen in Australia and the state of

New York, you're not allowed to add this charge, but Japan, Canada and

New Zealand, you can. A lot of consumer group saying, it is about

time. It is a hidden way of getting extra income. When you go to the

airport and you have a no commission exchange rate company and it spreads

massively wide, you will get charged somewhere for that. We have been

asking from when you have had some unexpected surcharge when paying by

card. Darren says, what about booking fees? I booked tickets for a

show and had to pay ?8 and booking fees. Steve raffle ticket for ?2 and

the surcharge was five-time because apparently was gambling. Someone

else says 20 years ago, I got surcharged ?12 in a top London hotel

for just sitting in the lounge, I ordered a pot of tea and a

strawberry tart. Shocking! We have a story here, briefly, on the BBC web

page, an Audi car advert which has been criticised in China. Yesterday

we talked about new standards being brought into the UK to stop gender

specific advertising. This is an Audi advert showing a mother-in-law

inspecting the nose, ears and teeth of a prospective bride the siege is

appropriate for her son. As she was buying a horse or something. A bit

old school. Maybe a bit of a black mark for Audi. Maybe the one people

to talk about it.