18/08/2017 BBC Business Live


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This is Business Live from BBC News with Alice Baxter and Ben Bland.


Promises, promises - we take a look at which campaign


pledges President Trump has kept and which he has not,


Live from London, that's our top story on Friday August 18th.


Plans for an infrastructure council dropped, two


advisory boards ditched - the business blues are piling


Police have killed five suspected terrorists in the Spanish


resort town of Cambrils, linked to Thursday's


We'll bring you the latest developments as they happen.


Plus we'll bring you all the latest market movements where European


stocks have joined Asian and US markets a global retreat


And we'll be talking all things media -


including Facebook's foray into streaming - with our


And as China's Lenovo slips as the worlds biggest PC maker


after disappointing results, we're asking has


Do you still use them or have they been replaced


He came into the White House with a pro-business agenda.


But events this week have caused the business community in America


to distance themselves from Donald Trump.


Analysts have warned that his response to the violence


in Charlottesville will hurt Republicans' prospects


So let's look at his scorecard so far.


In January Trump formally scrapped TPP, a flagship trade deal with 11


Asia-Pacific countries - blaming the deal for


He also promised he'd withdraw from the Paris climate deal,


which he did in June, saying it would cost


And nothing has been achieved when it comes to tax reform.


Congress is struggling to agree on how to fund lower taxes


One of his major campaign promises was to rework the trade


agreement between the US, Canada and Mexico.


Trump made it clear that he didn't want tweaks,


With us is Dr Brian Klaas, fellow in comparative politics


Thank you for coming to joiners. We have been looking at what promises


President Trump hasn't has not achieved, I'll be expecting too much


given we're 200 years into a four year term? I don't think so, in


historical terms usually when the White House, the House the Senate


are controlled by the same party there is a mandate sweeping progress


for change, but that has not been achieved. President Trump promised


he would say manager builds within 100 days of becoming president. We


ronde 211, he has signed non-, they have not been submitted to Congress


in any reasonable form and are going nowhere. Which of those do you


suggest he should concentrate on getting through in order to placate


those who say he has not achieved anything, legislatively, so far? A


smart move would be to go their infrastructure, this is the one


thing on his agenda that the Democrats agree is a pressing


problem for America. There could be bipartisan support and it could be


ushered through as it could try to turn the page on Trump plasma


presidency so far, which has been historically inconsequential. What


about the things that Trump has trumpeted as achievements, jobs


creation, the stock market doing very well. Looking at his


achievements in isolation is like looking at the paintwork on the


Titanic and praising it. Businesses expected jump to deliver on


promises, and he has not. A million jobs are created between February


and July, the lowest number for February to July in five years. This


is touting of the economy, it is a continuation of the Obama economy,


the economy is doing OK but it is not because of Trump, figures are


worse than a year two go. There has been anticipation about tax reforms


and the regulatory changes he has promised in a very pro-business way,


lots of us has been priced into the markets, on Wall Street the markets


have hit record high at a record high. Will patience ran out and they


think, will this actually happen? We are nearing that point. There is a


turning on Trump from the business councils, he is viewed as so


politically toxic by some CEOs that they cannot be affiliated with him.


Paul Ryan is sending out e-mails to supporters talking about his tax


reform pledge as the world focuses on his comments which seem to equate


neo-Nazis with those protesting them. People are focusing on the


storm on Trump and trying to get tax reform through in that dynamic is


extremely difficult. Business leaders are aware, they know there


is no political momentum for the sweeping reform of tax policy when


President Trump is making a new scramble for himself on a daily


basis. Thank you very much, Dr Brian Klaas from London School of


Economics. Let's take a look at some of


the other stories making the news. Sales of British salmon helped


the UK export a record amount of food and drink in the first half


of the year, according Exports of the fish jumped


more than 53% by value UK food and drink exports rose more


than 8% to roughly $13 billon, helped by the fall in the pound


after last year's Brexit vote. Turning to trade -


and the United States and South Korea will start talks


on amending a five-year old trade agreement that President Trump has


called a horrible deal. South Korea is the United States'


sixth-largest goods trading partner. Negotiations are scheduled


to start next week. China's Unicom says it


will continue to suspend trading The development comes


after the state-owned communications group announced it's trying to raise


roughly $12 billion from about a dozen investors,


including Alibaba and Tencent Plenty of business stories updated


throughout the day on our website. Right now, Kit Kat accused of Atari


copyright infringement. Nestle has been accused of using the look and


feel of a classic Atari game without permission in order to promote its


Kit Kat chocolate bars. You can read all about that on the Businesslike


page, perhaps when you're having a break!


Oh, Ben! Away from chocolate business to something more serious.


Now to Christine Hah in Singapore, where Chinese personal computer


maker Lenovo was one of the worst performers on Hong Kong's


Christine, what is going on? Just to show you how big a shock it was


Brenda esters, analysts are expecting around the $5 million and


instead Lenovo came back with a $72 million loss, its first quarterly


loss... Business of a quarter until June, enormous two years. This used


to be the world's biggest PC maker, they have lost that position to HP,


a lot of that is down to the fast declining PC business globally but


even that they underperformed, shipments fell 6% in the quarter


which is much below the 3% decline in the overall market. The mobile


business is improving, but not enough, still making a loss as a


time when consumers are turning to tablets and smartphones and its data


business has yet to turn profits. Even the company is giving itself


quite a bleak outlook, it says a shortage of key components means


costs will likely keep rising and its profit margins will shrink in


the short-term looking ahead. The Lenovo brand was once China's poster


child for global expansion, but right now it looks like it'll be an


uphill battle from here run. Thanks, Christine.


Asian stock investors joined a global retreat from riskier assets


that we have seen on Friday. Japan's McKay fell to a three and a half


month low and posted its fifth weekly drop -- Japan's Nikkei. There


is a weaker dollar due to doubts about whether President Donald Trump


will be able to push through economic policies to boost US


economic growth, as we discussed earlier. That comes after US stocks


sold off on Thursday with the S 500 lodging its biggest daily


percentage drop in months, because of the fiery rhetoric between


Pyongyang. Concerns remain that tensions in the region could flare


up again in the peninsular, traders say the market will likely stay


cautious in the meantime. Here in Europe on Friday markets


also opened on a negative note. We will have to see whether they all


end the session and the week in the red. Meanwhile, Michelle Fleury has


the details about what is ahead on Wall Street.


What is this Friday held for the stock market after the S 500 had


its second biggest percentage drop of the year? The major US indexes


fell following the attack in Barcelona, all ending the session


down more than 1%. Stocks are already headed lower earlier in the


day due to worries about the Trump administration, speculation of White


House economic adviser Gary:'s possible departure merely rocking


the markets. Turning to the corporate front, a farmer


construction equipment maker is expected to report higher


third-quarter profit thanks to increased demand in South Africa


offsetting weakness at home. Michelle Fleury with a look ahead to


what is happening on Wall Street. Joining us is Mike Bell from JP


Morgan Asset Management. Lots to delve into, but let's focus


on the latest hints from the Federal reserve and what they may or may not


do when interest rates. The committee show they are quite split


in the latest minutes and our view is they will still put rated in


December, the market says it is more likely than not that they do not but


our view is while it is not a certainty it is more likely than not


that they raise rates in December. We think it is pretty likely they


will announce in September that they started to reduce the size of their


balance sheets. All of the Government bonds they bought over


the years, they will start reducing the amount. Keeping with the theme


of central bank, hints and things, just last night we got some minutes


from the European Central Bank, what did they tell us? There was some


concern over the fact that the euro has gone up here today. That may


weigh on inflation, holding inflation down more than was


expected, and some might think perhaps it means that the ECB will


not start to reduce the amount of quantitative easing bond buying that


it is doing. We believe the most likely outcome is that by January


they will further reduce the amount of Kiwi they are doing, the growth


outlook in Europe really looks quite good. Mike, you will take is to some


business papers later in the programme.


We will be talking about PCs and tablets later, have you moved on


from your PC? One person says tablets are more portable and he


uses his to present work, but another viewer says the laptop will


be hard to beat. Keep tweeting is using the hashtags #BBCBizLive.


More Trump talk as we discuss the President's tricky relationship


with the press with our media editor Amol Rajan.


You're with Business Live from BBC News.


The public relations company Bell Pottinger is to appear


at an industry standards hearing today over charges stemming


The public relations company Bell Pottinger is to appear


at an industry standards hearing today over charges stemming


In July, Bell Pottinger apologised over a controversial social media


campaign that critics say inflamed racial tensions.


He is in our business newsroom. Do we know the details around this? A


bit earlier this year Bell Pottinger ran a social media advertising


campaign which went out through Twitter and several other outlets,


it had hashtags on it like white monopoly capital. They were trying


to focus the attention of South African citizens on the


concentration of wealth in the hands of those people who are white to 1


degrees or another. The feeling put about by opposition political


parties in South Africa was that this was divisive and knowingly


raised racial tensions, but also designed to distract attention away


from scandals that have surrounded the current president, Jacob Zuma,


and an Indian born family, the Guptas, who are extremely wealthy


and influential in South African politics. A hugely divisive and


emotional issue in South Africa. The leader of the is it a Democratic


Alliance party called it a hateful and divisive campaign. What is the


possible outcome of today's hearing? The communications trade body, not


government regulated as such, the Democratic Alliance applied and


complain to them from South Africa, complained in the UK. Possible


outcomes include fines, some form of official censure, but the almost


certain outcome, which is probably what the opposition party hopes for,


is to raise the level of this story in the mind and consciousness of


South African people and therefore, hopefully for them, do better in the


next election, which Jacob Zuma's ANC wants to keep down. Thank you.


You may have some of these in your breakfast table this morning. Among


those being sold, French's, and the proceeds will be used to reduce some


of its debt pile, also known for other brands, such as Strepsils.


Bring you up-to-date on the latest on the attack in Spain. You are


watching business life. Authorities are investigating attacks in


Barcelona and Cambrils and believe a cell of eight people may have been


involved and planning that attack with gas canisters, according to a


judicial source. Spanish police say they have shot


dead five suspected terrorists, following a second attack


in the country within 12 hours. They were killed overnight


in the resort of Cambrils, after they drove a car


into pedestrians, Hours earlier, a van ploughed


into crowds 75 miles away, in the popular Las Ramblas district


of Barcelona, killing at least 13 people


and injuring 88 others. Police have arrested


three people so far. A very quick update on that, the


Catalonia police force say that extra security checks will be in


place around the area of placid Catalonia, a large square in the


centre of Barcelona, go there on foot, do not take large bags


backpacks if you are there. -- Placa de Catalunya. The life page is being


updated with developments. Later we will be looking at how the story is


being covered in the newspapers. All over major media outlets at the


moment. It's been another busy


week in the technology Facebook's continous stellar revenue


growth has made headlines as the firm revamps its video


offering, creating a new, Meanwhile in the political world,


US president Donald Trump troubling relationship with the media


continues. To discuss it all is our media


editor, Amol Rajan Facebook, taking on competitors,


trying to outdo Netflix, YouTube and the rest of them. Facebook has a


nice problem, its revenue growth is quite hard to get your head around,


market capitalisation is 500 billion earlier this year, revenue growth


growing by 70% year-on-year, this is a very wealthy company, but it faces


a fundamental problem, it is running out of space to sell advertising, if


you look at the Facebook news feed, so many -- only so many adverts you


can cram on there, over the past quarter, Facebook has increased how


much it charges advertisers for the space, but Facebook thinks, if we


have a news feed to sell advertising, how can people spend


ever more time on the news feed, that is where they have decided to


take this move into television, Facebook Watch, a big departure for


Facebook, originally a social network, now it is somewhere that


will commission original programmes, the kind that we used to watch on


television, Facebook will keep any Rafael of any advertising revenue,


and this is all about making Facebook even more addictive. --


will keep 45% of any advertising revenue. Selling even more ads,


becoming even more wealthy. As they move into this usually set related


market of online streaming, begs the question, you have written


extensively about it, is Facebook moving away from being a tech


company and moving to a media company, which it is then open to


regulatory checks. This time last year Mark Zuckerberg was in the


Vatican, seeing the Pope, he said Facebook is a technology company,


not a media company, one of the reasons he said that is because


years ago when it was launched in 2004, Mark Zuckerberg referred to it


as a utility and someone said, utilities are regulated, you might


want to go easy on calling it that. His investors, the Facebook


shareholders, want it to be a technology company because they


think technology is really exciting. The problem with media, media


companies, papers, BBC, they come with social moral legal obligations


and they are regulated. This is undoubtedly making Facebook a media


company, commissioning original programming, funded by advertising,


that is what media companies are, the world's biggest distributor of


news and information, Facebook is now a media company. The question I


would ask, if it is creating original programming in this


country, viewed by people in this country, why is it not regulated, it


seems to be an anomaly in terms of regulatory framework. From new media


to old media, Saudi investment in the independent. Very unusual, I was


editor for three years before coming to the BBC, the Independent shut as


a newspaper, rather painful, it is now a website, and bearing in mind,


ten years working at the independent, if you had said that


sometime it would be valued at ?100 million, and a Saudi investor would


take a 30% stake, I would have said you would be barking mad. The fact


is there has been an excellent generic commercial transformation,


for the Independent, worth a lot of money now, should other newspapers


also abandon print and go fully digital? The attraction is, you have


the clarity and focus of producing a website and get rid of all these mad


distribution costs, the idea of printing things in paper, sending


them in lorries around the country, letting retailers take a cut... The


Independent has got rid of that. I'm not sure if it will yet work for the


Guardian to go like that because the Guardian still has a big print


circulation revenue, if they abandon that, they will have to make it


through digital advertising, really. Your take so far on Donald Trump's


usage of the media over the last week in particular. Derided in the


media, he is deriding media as fake news, going through social media but


he has now created a unanimous... Time magazine and the Economist and


the New Yorker have very scathing cartoons on the front cover, the


fact is, Donald Trump is helping the media, fantastic story, New York


Times subtractions are up, traffic on websites is up, and the alleged


war between Trump and the media is a marriage of convenience, CN in


viewership is up because of him. -- CNN. In a moment we will look


through the business pages but first, a quick reminder of how to


get in touch with us. The business life page is where you can stay


ahead with all of the day's breaking business news, we will keep you


up-to-date with all the latest details, from the team of editors


write around the world, and we want to hear from you as well, get


involved on the BBC business live web page, add and on Twitter and you


can find us on Facebook, business live, on television and life,


whenever you need to know. Back to go through some of the


newspapers but first, revisiting the Twitter question, asking this


morning about whether you still use a PC or you have moved to tablet or


smartphone, after the trouble Novo is having, lots of tweets on this,


Steve says, still use PCs, cannot live without three screens for


juggling open files. The laptop will be hard to beat. I thought it was


going the other way, people moving back to laptops because of the


limitations of tablets, interested you get your thoughts on this, do


you still use desktop, laptop? Almost inclusively


using a tablet these days, in the office I clearly use a desktop


computer, but I hardly use a laptop at. What in work you use a


desktop... Now maybe a division between home and the work space and


what we use, I don't know. Moving on to some of the business newspapers,


we ask you to take a quick read through this story on the


independent, nodding on these tragic events in Barcelona. What is your


rate? Clearly tragic, and the key takeaway is how sad this is from the


families and friends of those killed, and injured, rather than any


economic takeaway, the impact on the market and the economy is likely to


be negligible, clearly has a huge impact on those affected. Moving on


to the story in the Financial Times, Uber planning another share sale,


potentially. Somewhat cynical, what is going on here, allowing people


who already own shares in Uber to sell them at what is likely to be a


lower price than the previous valuation, people buying in will be


able to buy shares from them, the average price ends up looking lower


than the headline price that will be paid. Thank you very much for that,


really good to see you, have a good weekend. That takes us to the end of


the programme. Thank you very much for watching.


Good morning, quite a few showers, all of us will catch one or two, not


a completely


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