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This is Business Live from BBC News with Ben Bland
The Uk's International Trade Secretary meets his US
Live from London, that's our top story on Monday the 24th of July.
A deal between the US and UK could boost trade by tens
of billions of dollars - but can't be struck until after
The International Monetary Fund cuts the growth prospects
for the UK and US - while boosting its forecasts
And how did this thing change the world?
I sit down with the man who invented the USB Memory stick.
He sold the firm for $1.6 billion but describes it as one
And as lab-grown diamonds become more popular,
today we want to know, would you mind if the diamond
in your engagement ring was man-made.
Later today the UK's trade secretary Liam Fox will be in Washington
to discuss a preliminary trade deal ahead of Britain's departure
A final trade agreement cannot be ratified until the UK
formally leaves the EU, but the two nations are keen to lay
the foundations for what the US President expects to be,
In an interview with the BBC, Mr Fox said that UK-US
trade is currently worth nearly $220 billion.
But this could increase by as much as $52 billion if trade barriers
For now though the process cannot begin in earnest because the UK
is not permitted to hold formal trade talks with non-EU
countries until it has left the European customs union.
To complicate matters, the UK's trade secretary has
welcomed a transition agreement with the EU which could potentially
last up until the next scheduled general election in 2022.
Although this would prevent the UK dropping off a cliff-edge in 2019,
it is currently unclear whether the UK would be able
to start negotiating with non-EU trading partners
while the transition deal is active.
Marianne Schneider-Petsinger is Geo-economics fellow with the US
and Americas Programme at Chatham House.
Good morning. Welcome to the programme. Ben running through some
of the issues there. Ifs, buts and maybes and preliminary deals, can't
strike a deal until we leave the European Union. I suppose the first
question is, how likely is it that this will get done? I think at some
point it will be, but for these talks, the focus is very much laying
the ground work, scoping an exercise of where the trade deals might be
done. Also providing continuity and certainty to US and UK businesses.
There are a number of regulatory and technical agreements that could be
part of the discussions, whether it's with regards to data flows and
also air transport for example. We talk there about what needs to be
done, certainly business wants some certainty. What is likely to be the
sticking blocks? If you take a look at the trade negotiations that have
been going on since 2013, lots of sticking points will likely emerge,
so concerns about the importing of US chlorinated chicken, beef and
also the question about financial services regulation I think could
likely resurface. So where do you think the areas of perhaps easiest
agreement are likely to be and where are they most likely to strike a
deal? I think if you have an agreement that covers these things,
that could be low-hanging fruits. There could be issues about
standards, that is where the challenges will be. With the
transition period, as you pointed out, the implications of a US trade
deal, sorry the UK EU trade negotiations will have implications
for the negotiations between the United Kingdom and the United
States. If it came down to a choice between having a transitional deal
with the EU or getting a US UK trade deal in place, which do you think
would be the most important? Obviously the UK trade negotiations
with the EU have priority trade. It's four times larger than anything
else with the US, so that is where the key priority will be. It also
strikes me then, all of this, we are talking about this cliff edge, that
time is running out whether we like it or not and a deal has to be done
at some point. That cliff edge is a real possibility that no deal will
be done in any scenario and the UK falls off the cliff en? Yes and if
you have an agreement in place, again what this future relationship
might be has implications for any negotiations with the United States
and don't forget that negotiations in general take a lot of time. For
the United States on average it's like three-and-a-half years now to
have an agreement from the start of negotiations to the implementation
phase so it will be a long time. We may have to talk about this again
in the future. For now, thank you very much.
Let's take a look at some of the other stories making the news.
Irish low-cost airline RyanAir, has reported a 55% rise in profits
The airline says passenger numbers grew by 12 percent to 35 million -
But it admitted the figures were distorted by the timing
Australia's consumer watchdog agency is investigating the recall
of Takata airbags after a driver's death earlier this month could be
If proven, it would be the 18th fatality related to faulty
The oil-producing companies are meeting in Russia today. The
ministers from the Organisation of Petroleum Exporting Countries OPEC,
as well as other oil producers, with dealing with the oversupply of oil.
Earlier this year they came up with a plan to try to curb production in
order to stop crude oil prices from falling.
This news in about Uber Grab. They are calling it the biggest round of
investment. A real power play for these firms around the world, some
of course in some countries uber- is banned, others like Lift and Grab
managing to enter the market as a result. Grab operating in seven
countries, east Asia's most popular ride-sharing firm.
The IMF has released the latest world economic outlook
and while there's good news for China, Japan and the Eurozone
there's bad news for the US and the UK Karishma Vaswani
Tell us more? China, the eurozone and Japan have been a slight bump
upwards. The US and UK are expecting to Cee Loer rates mainly because of
the weak first quarter. The IMF says the UK will grow 1.7%, compared with
the previous 2% it was forecasting, but to be honest it doesn't clarify
why. I've looked through the report and it doesn't say much more than
that. The funds said meanwhile that the US would grow by just 1.2% in
comparison to the 2.3% it previously forecast down to of course the fact
that fiscal stimulus in the US isn't going the way everyone expected
because the Trump administration seems preoccupied, to be frank, at
the moment. Let's take a look at China. It got a slight bump up.
Growth rates in 2017 expected to come in at 6.7%. Next year at 6.4%.
Both figures are slightly higher than what the IMF previously
forecast. As we have been talking about over and over again, all the
comes at a hefty price tag. The IMF says Beijing, in order to achieve
the growth rates will be focussing on Government spending. That might
mean a delay of much-needed financial reforms and more debt to
its already ballooning debt pile. That's a massive problem for the
Chinese. The IMF says that if China doesn't address the risks in the
long-term, that could result in a slowdown in growth.
Japanese stocks dropped to more than two-week lows
on Monday after Wall Street retreated on Friday.
A stronger yen dampened sentiment, while investors looked
for opportunities to buy small and mid-size stocks.
A strong yen drags on exporters' shares.
The dollar suffered fresh losses at the start of the week on lower
expectations for under-fire Donald Trump's ability to push
Let us take a look at the European markets. Earnings reports from
Alphabet which owns Google, also Am zok and Facebook will come out with
their figures. Samira act head joins us now.
Investors expect to see a rise in revenue and profit helped by
advertising sales on video content and mobile devices. The company's
cloud computing business is doing well, which has long been trailing
behind Amazon and Microsoft. It managed to win some major deals for
it cloud business but investors are worried about how much Google
depends on searches. Any update on its plans to beef up its cloud
business will be interesting to watch. Finally, the second largest
toy maker in the US, Hasbro, will be reporting earnings. Based on
Spider-Man, Hasbro and other products, will be very much the
reason why they'll be up. Joining us is Jessica Ground, UK
equities fund manager at Schroders. Nice new glasses, I approve, by the
way. What is happening? They are talking
about the same level of growth, still not back to pre-crisis levels.
Still quite vulnerable. But within that, downgrades for the US, because
we haven't seen the tax reforms that people had hoped for and downgrades
for us in the UK because we have had a slow start to the year and
uncertainty of the election won't have helped either. I was talking
about the downgrades for the US and the UK there, but it's a different
picture around the world and it shows that diverging view of some
economies managing to weather the storm better than others?
Definitely. What is really encouraging is that there is better
news for some of the European economies and the Japanese economies
which have had a really tough longer term outlook. Their growth is
starting to come back. That's good. China looking reasonably stable and
again some of the other emerging economies sort of being a bit
stronger. So almost like a sort of two-speed thing. As mentioned a
moment ago, lot of corporate results out this week, which are the ones
analysts will be watching closely? US tech's had a phenomenal run,
that's been because there is this environment where growth's been
harder to come by. People have been looking for the tech stocks to
deliver that. Google, Alphabet, what they're doing in terms of
advertising will be really interesting. Similarly some of the
results from the European companies are going to be interesting.
Europe's been rerated by investors partly because they now see growth
returning. Is that happening in the bottom line of the companies, that
will be interesting. As far as the potential trade negotiations with
the US, as we heard at the start of the programme, it's vital but there
are so many question marks over whether it will get done because
frankly we can't do anything until we leave the European Union anyway?
These things are really complex. As you have already talked about,
geographically, we have trade deals with people physically close to you,
so yes the US will be great and yes Boris Johnson going off to Australia
and New Zealand is fantastic. But getting the transitional trade deals
with Europe will be really important.
Thank you for talking to us about that. Still to come:
I meet the man who invented the humble USB memory stick.
It changed the way we use computers and share data
but why does he describe selling the firm as his biggest regret?
You're with Business Live from BBC News.
Here in the UK, lots of stories including Ryanair, which we will get
into in a moment. Profits up substantially. But let's go to the
live page once again. B shares, the discount retailer. Asda could be
looking to make a bid for it. It would be ?4.4 billion if it is
confirmed. There is a huge debate about the value of these low cost
retailers in the UK. They often do well when incomes are squeezed. B
is one of the biggest success stories of late and Asda are
potentially wanting a slice. Why? For access to that network of
stores. The Sunday Times reporting on that early stage of assessing the
bid for B Plenty more on the website for you as well, including
news from Ryanair this morning. They are reporting that their shares have
fallen by 5%. This is after the airline announced they expect fares
to fall in the six months to the end of September and even further in the
months to the end of March next year, despite them reporting
positive results, saying that the profits soared 55% in the three
months to the end... I've lost where I am! To the end of June! I tell you
someone who know exactly which man is involved! That is the chief
financial officer of Ryanair, who spoke to me earlier. A very strong
airline. We saw our unit costs excluding fuel drop by 6% at a time
in the cost of our competitors are rising. We are looking at savings on
a full-year basis. The airline is in good shape. We did see a benefit
from east in April of this year in the same quarter last year. The
fares will be down in the region of about 5% in the first half of the
year and we are sticking to that that we see no reason to change that
guidance. We are looking at fares down approximately 8% this winter.
Very good value for the customers at the moment. The chief financial
officer of Ryanair speaking to me earlier today. Another story that
caught my attention on the website. The electricity shake-up that could
save consumers up to ?40 billion. This is by our environment analyst,
Roger. This is about how electricity is generated and stored and whether
people generating their own power using solar power could sell it to
the national grid. the UK's trade secretary, Liam Fox,
will be in Washington But a final trade agreement cannot
be ratified until the UK formally As you would expect, a lot of
uncertainty about what could happen and crucially what it will mean for
business. We will be discussing that at the start of the programme. A
quick look at how the markets are faring. This is how they looked at
the start of the trading day, the start of the trading week, across
Europe. All just into the red, down just a shade. That is what the pound
will buy you against the dollar. It revolutionised the way
we save documents and you can carry it around
in your pocket. And it was invented
by an Israeli entrepreneur. In fact, outside of California's
Silicon Valley, one of the most exciting places for tech start-ups
and innovation is Israel. The country has a record
of attracting big In the last three
years 195 companies, together worth just over
$35 billion, were either bought out or floated
on the stock market. This year saw Israel's biggest ever
takeover when technology firm MobileEye - a pioneer
of driverless car technology - was bought by Intel
for $15.3 billion. We spoke to Intel about that deal on
the programme. The big money deals
are nothing new though. In 2006 M-Systems was bought
by SanDisk for $1.6 billion. M-Systems
was founded by Israeli entrepreneur and inventor Dov Moran,
also known as the man I sat down with him to hear
how he turned his big We were going to a conference in
Israel, and at the end of the conference, I said, guys, I have
this amazing device that we are going to launch very soon. Here it
is. It is the first time you'll get to see it. The USB flash drive. And
people didn't like it. There were many questions. Like, why should I
use this? There are floppy disks, they are cheaper, what is the price
of that? Only eight megabytes? What is that? Nothing is obvious, nothing
is clear. What was the secret of the success? First of all because it is
in your pocket, you see. That's one. It is easy, in your pocket. It is
very simple to use. Everybody could use it. You didn't have to study
anything, you didn't have to learn anything. There are no problems, it
just works like a hard drive. Then fast forward to 2006, and you sold
the company that you had created for a lot of money. Tell me about that.
In 2006 I sold the company, $1.6 billion. Not so bad. Not so great!
Interesting that you say that. On one hand, you have described that
sale as your biggest excess, but on the other, one of your biggest
regrets. Why is that? -- biggest success. I don't regret it. You
can't save you regret selling a company for $1.6 billion but I
wasn't happy to sell. It wasn't my dream. The reality is that the CEO
of Sandisc try to approach me to acquire the company and I said no
until I broke down. I said yes. It wasn't really because I wanted to
sell the company. There was a situation which I won't go into, but
I was not happy with my board and the way they treated the company and
acted. Tell me about signing on the dotted line. You had committed
yourself to selling the company. What was going through your head?
Mixed feelings. For a long time I had a very heavy bad feeling of
disappointment. I saw it as a failure, not a success story. It
took me time to accept that this was sort of success. You sold the
company but it is like you retired. You have been doing a lot since
then. I know you are very active in tech start-ups, especially in
Israel. Tell me about the way that the country lurches start-ups.
Israel is an amazing place. Lots of start-ups. But very few investors
are investing in the really difficult stuff. I feel that this is
required and it is what I am doing these days. You have had a lot of
failures but also a lot of successes. What advice would you
have for people who want to emulate that success? A relatively simple
idea and you turned it into a huge business. You have got to learn a
lot and really understand the market very well. My advice to people is go
study. Understand technology very, very well. Understand the market.
Pick market. Go very deeply into this market to see what is going on,
what other and requirements. Then come up with an invention. -- what
are the needs and requirements. A fascinating interview about new
technology being nurtured in Israel. Of course you can forget the memory
stick and leave it in the computer. Or not know which way up it goes!
You always have to try three times. Now, the IMF. The latest army of
forecasters holding the headlines. They put it out every quarter and
they have downgraded the UK's economy. They thought it would grow
by 2% and now they say 1.7% this year. Similar downgrade for America
this year and next year. The IMF has been wrong about the UK economy
quite a few times in the recent past but it does provide a good snapshot
of what is happening in the world. UK slowing down, the eurozone doing
better, the USA stuttering. Let's turn our attention to something very
different. This is the Washington Post, man-made diamonds.
Traditionally diamonds are dug out of the ground at great cost.
Man-made diamonds in a lab. Industrial diamonds have been around
for a long time. You start with a sliver of diamond and you stick
carbon around it and apply heat and pressure and eventually you get a
man-made diamond. Many they have been used for industrial diamonds
but now getting bigger and bigger and bigger and they are being used
in fashion and jewellery like traditional diamonds. There is
competition for the ones that are dug out of the ground. Some people
might prefer a man might diamond. Our viewers do. David says he
doesn't mind the long as it is cheaper than a real rock. Joe says
her engagement ring is man-made and she loves it. And hopefully it puts
an end to child labour and poverty still needs to be addressed. The
trick is not to tell her! Maybe you can tell if you are an absolute
expert but they are indistinct or from the real thing because they are
real, just created using chemicals. Nice to see you, Dominic. There will
be more business news today and throughout the week. We will see you
soon. Goodbye. Hello. It was quite worked for many
of us over the weekend. Heavy showers and longer spells of rain.