18/08/2017

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:00:00. > :00:07.This is Business Live from BBC News with Alice Baxter and Ben Bland.

:00:08. > :00:10.Promises, promises - we take a look at which campaign

:00:11. > :00:12.pledges President Trump has kept and which he has not,

:00:13. > :00:36.Live from London, that's our top story on Friday August 18th.

:00:37. > :00:39.Plans for an infrastructure council dropped, two

:00:40. > :00:42.advisory boards ditched - the business blues are piling

:00:43. > :00:49.Police have killed five suspected terrorists in the Spanish

:00:50. > :00:50.resort town of Cambrils, linked to Thursday's

:00:51. > :00:57.We'll bring you the latest developments as they happen.

:00:58. > :01:00.Plus we'll bring you all the latest market movements where European

:01:01. > :01:05.stocks have joined Asian and US markets a global retreat

:01:06. > :01:10.And we'll be talking all things media -

:01:11. > :01:12.including Facebook's foray into streaming - with our

:01:13. > :01:26.And as China's Lenovo slips as the worlds biggest PC maker

:01:27. > :01:28.after disappointing results, we're asking has

:01:29. > :01:31.Do you still use them or have they been replaced

:01:32. > :01:49.He came into the White House with a pro-business agenda.

:01:50. > :01:52.But events this week have caused the business community in America

:01:53. > :01:57.to distance themselves from Donald Trump.

:01:58. > :01:59.Analysts have warned that his response to the violence

:02:00. > :02:01.in Charlottesville will hurt Republicans' prospects

:02:02. > :02:10.So let's look at his scorecard so far.

:02:11. > :02:13.In January Trump formally scrapped TPP, a flagship trade deal with 11

:02:14. > :02:15.Asia-Pacific countries - blaming the deal for

:02:16. > :02:25.He also promised he'd withdraw from the Paris climate deal,

:02:26. > :02:28.which he did in June, saying it would cost

:02:29. > :02:37.And nothing has been achieved when it comes to tax reform.

:02:38. > :02:41.Congress is struggling to agree on how to fund lower taxes

:02:42. > :02:46.One of his major campaign promises was to rework the trade

:02:47. > :02:52.agreement between the US, Canada and Mexico.

:02:53. > :02:56.Trump made it clear that he didn't want tweaks,

:02:57. > :03:02.With us is Dr Brian Klaas, fellow in comparative politics

:03:03. > :03:17.Thank you for coming to joiners. We have been looking at what promises

:03:18. > :03:22.President Trump hasn't has not achieved, I'll be expecting too much

:03:23. > :03:27.given we're 200 years into a four year term? I don't think so, in

:03:28. > :03:31.historical terms usually when the White House, the House the Senate

:03:32. > :03:36.are controlled by the same party there is a mandate sweeping progress

:03:37. > :03:40.for change, but that has not been achieved. President Trump promised

:03:41. > :03:44.he would say manager builds within 100 days of becoming president. We

:03:45. > :03:49.ronde 211, he has signed non-, they have not been submitted to Congress

:03:50. > :03:53.in any reasonable form and are going nowhere. Which of those do you

:03:54. > :03:59.suggest he should concentrate on getting through in order to placate

:04:00. > :04:04.those who say he has not achieved anything, legislatively, so far? A

:04:05. > :04:06.smart move would be to go their infrastructure, this is the one

:04:07. > :04:10.thing on his agenda that the Democrats agree is a pressing

:04:11. > :04:14.problem for America. There could be bipartisan support and it could be

:04:15. > :04:19.ushered through as it could try to turn the page on Trump plasma

:04:20. > :04:27.presidency so far, which has been historically inconsequential. What

:04:28. > :04:29.about the things that Trump has trumpeted as achievements, jobs

:04:30. > :04:34.creation, the stock market doing very well. Looking at his

:04:35. > :04:42.achievements in isolation is like looking at the paintwork on the

:04:43. > :04:47.Titanic and praising it. Businesses expected jump to deliver on

:04:48. > :04:50.promises, and he has not. A million jobs are created between February

:04:51. > :04:58.and July, the lowest number for February to July in five years. This

:04:59. > :05:02.is touting of the economy, it is a continuation of the Obama economy,

:05:03. > :05:07.the economy is doing OK but it is not because of Trump, figures are

:05:08. > :05:11.worse than a year two go. There has been anticipation about tax reforms

:05:12. > :05:15.and the regulatory changes he has promised in a very pro-business way,

:05:16. > :05:19.lots of us has been priced into the markets, on Wall Street the markets

:05:20. > :05:23.have hit record high at a record high. Will patience ran out and they

:05:24. > :05:33.think, will this actually happen? We are nearing that point. There is a

:05:34. > :05:36.turning on Trump from the business councils, he is viewed as so

:05:37. > :05:38.politically toxic by some CEOs that they cannot be affiliated with him.

:05:39. > :05:42.Paul Ryan is sending out e-mails to supporters talking about his tax

:05:43. > :05:45.reform pledge as the world focuses on his comments which seem to equate

:05:46. > :05:50.neo-Nazis with those protesting them. People are focusing on the

:05:51. > :05:54.storm on Trump and trying to get tax reform through in that dynamic is

:05:55. > :05:58.extremely difficult. Business leaders are aware, they know there

:05:59. > :06:01.is no political momentum for the sweeping reform of tax policy when

:06:02. > :06:08.President Trump is making a new scramble for himself on a daily

:06:09. > :06:09.basis. Thank you very much, Dr Brian Klaas from London School of

:06:10. > :06:09.Economics. Let's take a look at some of

:06:10. > :06:12.the other stories making the news. Sales of British salmon helped

:06:13. > :06:15.the UK export a record amount of food and drink in the first half

:06:16. > :06:18.of the year, according Exports of the fish jumped

:06:19. > :06:21.more than 53% by value UK food and drink exports rose more

:06:22. > :06:28.than 8% to roughly $13 billon, helped by the fall in the pound

:06:29. > :06:35.after last year's Brexit vote. Turning to trade -

:06:36. > :06:37.and the United States and South Korea will start talks

:06:38. > :06:41.on amending a five-year old trade agreement that President Trump has

:06:42. > :06:45.called a horrible deal. South Korea is the United States'

:06:46. > :06:47.sixth-largest goods trading partner. Negotiations are scheduled

:06:48. > :06:52.to start next week. China's Unicom says it

:06:53. > :06:56.will continue to suspend trading The development comes

:06:57. > :07:02.after the state-owned communications group announced it's trying to raise

:07:03. > :07:05.roughly $12 billion from about a dozen investors,

:07:06. > :07:25.including Alibaba and Tencent Plenty of business stories updated

:07:26. > :07:29.throughout the day on our website. Right now, Kit Kat accused of Atari

:07:30. > :07:33.copyright infringement. Nestle has been accused of using the look and

:07:34. > :07:38.feel of a classic Atari game without permission in order to promote its

:07:39. > :07:46.Kit Kat chocolate bars. You can read all about that on the Businesslike

:07:47. > :07:52.page, perhaps when you're having a break!

:07:53. > :07:53.Oh, Ben! Away from chocolate business to something more serious.

:07:54. > :07:56.Now to Christine Hah in Singapore, where Chinese personal computer

:07:57. > :07:59.maker Lenovo was one of the worst performers on Hong Kong's

:08:00. > :08:14.Christine, what is going on? Just to show you how big a shock it was

:08:15. > :08:21.Brenda esters, analysts are expecting around the $5 million and

:08:22. > :08:26.instead Lenovo came back with a $72 million loss, its first quarterly

:08:27. > :08:31.loss... Business of a quarter until June, enormous two years. This used

:08:32. > :08:36.to be the world's biggest PC maker, they have lost that position to HP,

:08:37. > :08:40.a lot of that is down to the fast declining PC business globally but

:08:41. > :08:45.even that they underperformed, shipments fell 6% in the quarter

:08:46. > :08:49.which is much below the 3% decline in the overall market. The mobile

:08:50. > :08:52.business is improving, but not enough, still making a loss as a

:08:53. > :08:57.time when consumers are turning to tablets and smartphones and its data

:08:58. > :09:00.business has yet to turn profits. Even the company is giving itself

:09:01. > :09:05.quite a bleak outlook, it says a shortage of key components means

:09:06. > :09:10.costs will likely keep rising and its profit margins will shrink in

:09:11. > :09:15.the short-term looking ahead. The Lenovo brand was once China's poster

:09:16. > :09:19.child for global expansion, but right now it looks like it'll be an

:09:20. > :09:26.uphill battle from here run. Thanks, Christine.

:09:27. > :09:30.Asian stock investors joined a global retreat from riskier assets

:09:31. > :09:35.that we have seen on Friday. Japan's McKay fell to a three and a half

:09:36. > :09:44.month low and posted its fifth weekly drop -- Japan's Nikkei. There

:09:45. > :09:48.is a weaker dollar due to doubts about whether President Donald Trump

:09:49. > :09:51.will be able to push through economic policies to boost US

:09:52. > :09:57.economic growth, as we discussed earlier. That comes after US stocks

:09:58. > :10:02.sold off on Thursday with the S 500 lodging its biggest daily

:10:03. > :10:06.percentage drop in months, because of the fiery rhetoric between

:10:07. > :10:09.Pyongyang. Concerns remain that tensions in the region could flare

:10:10. > :10:13.up again in the peninsular, traders say the market will likely stay

:10:14. > :10:18.cautious in the meantime. Here in Europe on Friday markets

:10:19. > :10:23.also opened on a negative note. We will have to see whether they all

:10:24. > :10:26.end the session and the week in the red. Meanwhile, Michelle Fleury has

:10:27. > :10:29.the details about what is ahead on Wall Street.

:10:30. > :10:34.What is this Friday held for the stock market after the S 500 had

:10:35. > :10:39.its second biggest percentage drop of the year? The major US indexes

:10:40. > :10:42.fell following the attack in Barcelona, all ending the session

:10:43. > :10:47.down more than 1%. Stocks are already headed lower earlier in the

:10:48. > :10:50.day due to worries about the Trump administration, speculation of White

:10:51. > :10:54.House economic adviser Gary:'s possible departure merely rocking

:10:55. > :11:03.the markets. Turning to the corporate front, a farmer

:11:04. > :11:07.construction equipment maker is expected to report higher

:11:08. > :11:12.third-quarter profit thanks to increased demand in South Africa

:11:13. > :11:13.offsetting weakness at home. Michelle Fleury with a look ahead to

:11:14. > :11:16.what is happening on Wall Street. Joining us is Mike Bell from JP

:11:17. > :11:23.Morgan Asset Management. Lots to delve into, but let's focus

:11:24. > :11:27.on the latest hints from the Federal reserve and what they may or may not

:11:28. > :11:32.do when interest rates. The committee show they are quite split

:11:33. > :11:37.in the latest minutes and our view is they will still put rated in

:11:38. > :11:40.December, the market says it is more likely than not that they do not but

:11:41. > :11:43.our view is while it is not a certainty it is more likely than not

:11:44. > :11:48.that they raise rates in December. We think it is pretty likely they

:11:49. > :11:52.will announce in September that they started to reduce the size of their

:11:53. > :11:55.balance sheets. All of the Government bonds they bought over

:11:56. > :12:02.the years, they will start reducing the amount. Keeping with the theme

:12:03. > :12:05.of central bank, hints and things, just last night we got some minutes

:12:06. > :12:11.from the European Central Bank, what did they tell us? There was some

:12:12. > :12:19.concern over the fact that the euro has gone up here today. That may

:12:20. > :12:22.weigh on inflation, holding inflation down more than was

:12:23. > :12:25.expected, and some might think perhaps it means that the ECB will

:12:26. > :12:29.not start to reduce the amount of quantitative easing bond buying that

:12:30. > :12:33.it is doing. We believe the most likely outcome is that by January

:12:34. > :12:36.they will further reduce the amount of Kiwi they are doing, the growth

:12:37. > :12:43.outlook in Europe really looks quite good. Mike, you will take is to some

:12:44. > :12:45.business papers later in the programme.

:12:46. > :12:51.We will be talking about PCs and tablets later, have you moved on

:12:52. > :12:56.from your PC? One person says tablets are more portable and he

:12:57. > :13:00.uses his to present work, but another viewer says the laptop will

:13:01. > :13:01.be hard to beat. Keep tweeting is using the hashtags #BBCBizLive.

:13:02. > :13:04.More Trump talk as we discuss the President's tricky relationship

:13:05. > :13:08.with the press with our media editor Amol Rajan.

:13:09. > :13:20.You're with Business Live from BBC News.

:13:21. > :13:22.The public relations company Bell Pottinger is to appear

:13:23. > :13:24.at an industry standards hearing today over charges stemming

:13:25. > :13:31.The public relations company Bell Pottinger is to appear

:13:32. > :13:33.at an industry standards hearing today over charges stemming

:13:34. > :13:37.In July, Bell Pottinger apologised over a controversial social media

:13:38. > :13:39.campaign that critics say inflamed racial tensions.

:13:40. > :13:49.He is in our business newsroom. Do we know the details around this? A

:13:50. > :13:54.bit earlier this year Bell Pottinger ran a social media advertising

:13:55. > :13:59.campaign which went out through Twitter and several other outlets,

:14:00. > :14:04.it had hashtags on it like white monopoly capital. They were trying

:14:05. > :14:07.to focus the attention of South African citizens on the

:14:08. > :14:14.concentration of wealth in the hands of those people who are white to 1

:14:15. > :14:19.degrees or another. The feeling put about by opposition political

:14:20. > :14:24.parties in South Africa was that this was divisive and knowingly

:14:25. > :14:27.raised racial tensions, but also designed to distract attention away

:14:28. > :14:34.from scandals that have surrounded the current president, Jacob Zuma,

:14:35. > :14:37.and an Indian born family, the Guptas, who are extremely wealthy

:14:38. > :14:42.and influential in South African politics. A hugely divisive and

:14:43. > :14:46.emotional issue in South Africa. The leader of the is it a Democratic

:14:47. > :14:52.Alliance party called it a hateful and divisive campaign. What is the

:14:53. > :15:00.possible outcome of today's hearing? The communications trade body, not

:15:01. > :15:04.government regulated as such, the Democratic Alliance applied and

:15:05. > :15:09.complain to them from South Africa, complained in the UK. Possible

:15:10. > :15:12.outcomes include fines, some form of official censure, but the almost

:15:13. > :15:17.certain outcome, which is probably what the opposition party hopes for,

:15:18. > :15:20.is to raise the level of this story in the mind and consciousness of

:15:21. > :15:25.South African people and therefore, hopefully for them, do better in the

:15:26. > :15:41.next election, which Jacob Zuma's ANC wants to keep down. Thank you.

:15:42. > :15:53.You may have some of these in your breakfast table this morning. Among

:15:54. > :15:57.those being sold, French's, and the proceeds will be used to reduce some

:15:58. > :16:19.of its debt pile, also known for other brands, such as Strepsils.

:16:20. > :16:27.Bring you up-to-date on the latest on the attack in Spain. You are

:16:28. > :16:31.watching business life. Authorities are investigating attacks in

:16:32. > :16:35.Barcelona and Cambrils and believe a cell of eight people may have been

:16:36. > :16:38.involved and planning that attack with gas canisters, according to a

:16:39. > :16:55.judicial source. Spanish police say they have shot

:16:56. > :16:58.dead five suspected terrorists, following a second attack

:16:59. > :17:00.in the country within 12 hours. They were killed overnight

:17:01. > :17:02.in the resort of Cambrils, after they drove a car

:17:03. > :17:04.into pedestrians, Hours earlier, a van ploughed

:17:05. > :17:07.into crowds 75 miles away, in the popular Las Ramblas district

:17:08. > :17:13.of Barcelona, killing at least 13 people

:17:14. > :17:17.and injuring 88 others. Police have arrested

:17:18. > :17:27.three people so far. A very quick update on that, the

:17:28. > :17:33.Catalonia police force say that extra security checks will be in

:17:34. > :17:37.place around the area of placid Catalonia, a large square in the

:17:38. > :17:41.centre of Barcelona, go there on foot, do not take large bags

:17:42. > :17:49.backpacks if you are there. -- Placa de Catalunya. The life page is being

:17:50. > :17:54.updated with developments. Later we will be looking at how the story is

:17:55. > :17:56.being covered in the newspapers. All over major media outlets at the

:17:57. > :17:59.moment. It's been another busy

:18:00. > :18:01.week in the technology Facebook's continous stellar revenue

:18:02. > :18:04.growth has made headlines as the firm revamps its video

:18:05. > :18:06.offering, creating a new, Meanwhile in the political world,

:18:07. > :18:10.US president Donald Trump troubling relationship with the media

:18:11. > :18:20.continues. To discuss it all is our media

:18:21. > :18:33.editor, Amol Rajan Facebook, taking on competitors,

:18:34. > :18:39.trying to outdo Netflix, YouTube and the rest of them. Facebook has a

:18:40. > :18:43.nice problem, its revenue growth is quite hard to get your head around,

:18:44. > :18:47.market capitalisation is 500 billion earlier this year, revenue growth

:18:48. > :18:53.growing by 70% year-on-year, this is a very wealthy company, but it faces

:18:54. > :18:57.a fundamental problem, it is running out of space to sell advertising, if

:18:58. > :19:02.you look at the Facebook news feed, so many -- only so many adverts you

:19:03. > :19:06.can cram on there, over the past quarter, Facebook has increased how

:19:07. > :19:10.much it charges advertisers for the space, but Facebook thinks, if we

:19:11. > :19:14.have a news feed to sell advertising, how can people spend

:19:15. > :19:19.ever more time on the news feed, that is where they have decided to

:19:20. > :19:24.take this move into television, Facebook Watch, a big departure for

:19:25. > :19:28.Facebook, originally a social network, now it is somewhere that

:19:29. > :19:32.will commission original programmes, the kind that we used to watch on

:19:33. > :19:38.television, Facebook will keep any Rafael of any advertising revenue,

:19:39. > :19:43.and this is all about making Facebook even more addictive. --

:19:44. > :19:47.will keep 45% of any advertising revenue. Selling even more ads,

:19:48. > :19:52.becoming even more wealthy. As they move into this usually set related

:19:53. > :19:56.market of online streaming, begs the question, you have written

:19:57. > :19:59.extensively about it, is Facebook moving away from being a tech

:20:00. > :20:06.company and moving to a media company, which it is then open to

:20:07. > :20:10.regulatory checks. This time last year Mark Zuckerberg was in the

:20:11. > :20:13.Vatican, seeing the Pope, he said Facebook is a technology company,

:20:14. > :20:18.not a media company, one of the reasons he said that is because

:20:19. > :20:20.years ago when it was launched in 2004, Mark Zuckerberg referred to it

:20:21. > :20:25.as a utility and someone said, utilities are regulated, you might

:20:26. > :20:29.want to go easy on calling it that. His investors, the Facebook

:20:30. > :20:33.shareholders, want it to be a technology company because they

:20:34. > :20:38.think technology is really exciting. The problem with media, media

:20:39. > :20:42.companies, papers, BBC, they come with social moral legal obligations

:20:43. > :20:47.and they are regulated. This is undoubtedly making Facebook a media

:20:48. > :20:50.company, commissioning original programming, funded by advertising,

:20:51. > :20:54.that is what media companies are, the world's biggest distributor of

:20:55. > :20:59.news and information, Facebook is now a media company. The question I

:21:00. > :21:01.would ask, if it is creating original programming in this

:21:02. > :21:07.country, viewed by people in this country, why is it not regulated, it

:21:08. > :21:12.seems to be an anomaly in terms of regulatory framework. From new media

:21:13. > :21:21.to old media, Saudi investment in the independent. Very unusual, I was

:21:22. > :21:24.editor for three years before coming to the BBC, the Independent shut as

:21:25. > :21:30.a newspaper, rather painful, it is now a website, and bearing in mind,

:21:31. > :21:35.ten years working at the independent, if you had said that

:21:36. > :21:38.sometime it would be valued at ?100 million, and a Saudi investor would

:21:39. > :21:41.take a 30% stake, I would have said you would be barking mad. The fact

:21:42. > :21:46.is there has been an excellent generic commercial transformation,

:21:47. > :21:50.for the Independent, worth a lot of money now, should other newspapers

:21:51. > :21:55.also abandon print and go fully digital? The attraction is, you have

:21:56. > :21:59.the clarity and focus of producing a website and get rid of all these mad

:22:00. > :22:04.distribution costs, the idea of printing things in paper, sending

:22:05. > :22:08.them in lorries around the country, letting retailers take a cut... The

:22:09. > :22:13.Independent has got rid of that. I'm not sure if it will yet work for the

:22:14. > :22:17.Guardian to go like that because the Guardian still has a big print

:22:18. > :22:20.circulation revenue, if they abandon that, they will have to make it

:22:21. > :22:26.through digital advertising, really. Your take so far on Donald Trump's

:22:27. > :22:31.usage of the media over the last week in particular. Derided in the

:22:32. > :22:35.media, he is deriding media as fake news, going through social media but

:22:36. > :22:39.he has now created a unanimous... Time magazine and the Economist and

:22:40. > :22:43.the New Yorker have very scathing cartoons on the front cover, the

:22:44. > :22:50.fact is, Donald Trump is helping the media, fantastic story, New York

:22:51. > :22:55.Times subtractions are up, traffic on websites is up, and the alleged

:22:56. > :22:56.war between Trump and the media is a marriage of convenience, CN in

:22:57. > :23:06.viewership is up because of him. -- CNN. In a moment we will look

:23:07. > :23:11.through the business pages but first, a quick reminder of how to

:23:12. > :23:15.get in touch with us. The business life page is where you can stay

:23:16. > :23:18.ahead with all of the day's breaking business news, we will keep you

:23:19. > :23:22.up-to-date with all the latest details, from the team of editors

:23:23. > :23:27.write around the world, and we want to hear from you as well, get

:23:28. > :23:38.involved on the BBC business live web page, add and on Twitter and you

:23:39. > :23:41.can find us on Facebook, business live, on television and life,

:23:42. > :23:46.whenever you need to know. Back to go through some of the

:23:47. > :23:50.newspapers but first, revisiting the Twitter question, asking this

:23:51. > :23:56.morning about whether you still use a PC or you have moved to tablet or

:23:57. > :24:01.smartphone, after the trouble Novo is having, lots of tweets on this,

:24:02. > :24:10.Steve says, still use PCs, cannot live without three screens for

:24:11. > :24:13.juggling open files. The laptop will be hard to beat. I thought it was

:24:14. > :24:16.going the other way, people moving back to laptops because of the

:24:17. > :24:20.limitations of tablets, interested you get your thoughts on this, do

:24:21. > :24:27.you still use desktop, laptop? Almost inclusively

:24:28. > :24:31.using a tablet these days, in the office I clearly use a desktop

:24:32. > :24:36.computer, but I hardly use a laptop at. What in work you use a

:24:37. > :24:40.desktop... Now maybe a division between home and the work space and

:24:41. > :24:47.what we use, I don't know. Moving on to some of the business newspapers,

:24:48. > :24:51.we ask you to take a quick read through this story on the

:24:52. > :25:00.independent, nodding on these tragic events in Barcelona. What is your

:25:01. > :25:03.rate? Clearly tragic, and the key takeaway is how sad this is from the

:25:04. > :25:08.families and friends of those killed, and injured, rather than any

:25:09. > :25:12.economic takeaway, the impact on the market and the economy is likely to

:25:13. > :25:19.be negligible, clearly has a huge impact on those affected. Moving on

:25:20. > :25:26.to the story in the Financial Times, Uber planning another share sale,

:25:27. > :25:31.potentially. Somewhat cynical, what is going on here, allowing people

:25:32. > :25:36.who already own shares in Uber to sell them at what is likely to be a

:25:37. > :25:41.lower price than the previous valuation, people buying in will be

:25:42. > :25:45.able to buy shares from them, the average price ends up looking lower

:25:46. > :25:50.than the headline price that will be paid. Thank you very much for that,

:25:51. > :25:57.really good to see you, have a good weekend. That takes us to the end of

:25:58. > :26:11.the programme. Thank you very much for watching.

:26:12. > :26:18.Good morning, quite a few showers, all of us will catch one or two, not

:26:19. > :26:19.a completely