:00:00. > :00:12.This is Business Live from BBC News with Ben Thompson and Rachael Horne.
:00:13. > :00:14.Trading with Trump South Korea steps up to the table
:00:15. > :00:17.to negotiate a new trade deal with the world's largest economy.
:00:18. > :00:32.Live from London, that's our top story on Tuesday 22nd August.
:00:33. > :00:35.South Korea and the US may be staunch allies when it
:00:36. > :00:40.But today the two sides will face off on a trade deal that
:00:41. > :00:51.And mining big returns, BHP Billiton bounces back
:00:52. > :00:54.from losing billions to making billions in just one year.
:00:55. > :00:58.And that's because commodity prices have soared but why and what else
:00:59. > :01:00.is moving the markets; we'll get the expert opinion
:01:01. > :01:08.And we'll be getting the inside track on the growing
:01:09. > :01:10.demand for getting big sound from digital speakers
:01:11. > :01:15.Rising house prices in the UK have lead to a sharp rise in homes little
:01:16. > :01:22.So today we want to know would you or do you live in a Micro Home?
:01:23. > :01:44.Do you think at 6'6" I could riv in a microhome? Probably not! Get in
:01:45. > :01:46.touch with us with your stories. The importance of trade deals
:01:47. > :01:49.between big economies is back Hot on the heels of Canada
:01:50. > :01:53.and Mexico - now it's the turn of South Korea
:01:54. > :01:56.to renegotiate its trade President Trump has already
:01:57. > :02:00.described that pact as 'horrible' South Korea is America's sixth
:02:01. > :02:05.biggest trading partner. Since the deal came into effect,
:02:06. > :02:10.the US says the trade deficit has doubled from $13 to $27 billion -
:02:11. > :02:14.it's importing much more from South Korea than it
:02:15. > :02:18.sells to the country. But some experts say that mismatch
:02:19. > :02:20.could be even greater That deal eliminates 95 per cent
:02:21. > :02:26.of tariffs on consumer and industrial products -
:02:27. > :02:29.as well as creating And they also highlight
:02:30. > :02:35.how much South Korea's is investing in America -
:02:36. > :02:38.up from $4.8bn in 2011 Joining us from Beijing
:02:39. > :02:48.is Miha Hribernik, a senior Asia analyst at global risk consultancy
:02:49. > :03:00.firm, Verisk Maplecroft. Thank you very much for joining us
:03:01. > :03:07.on the programme, Miha. Donald Trump has a problem with this growing
:03:08. > :03:09.deficit. He thinks they affect manufacturing jobs in the US,
:03:10. > :03:15.something that is very important to him. Is there any evidence this
:03:16. > :03:19.trade deal with South Korea has damaged jobs in the US? Well,
:03:20. > :03:22.unfortunately, any free trade agreement will have a negative
:03:23. > :03:26.impact on jobs, particularly in manufacturing and other industries
:03:27. > :03:29.that are unable to compete either in terms of cost or in terms of quality
:03:30. > :03:36.with goods and services coming from abroad. Now, that does tell only
:03:37. > :03:40.part of the entire story. If we only look at the automotive sector for
:03:41. > :03:47.example, it's frequently cited as one of the biggest victims when in
:03:48. > :03:53.fact the tariffs on imports of Korean cars were at 2.5% even before
:03:54. > :03:57.Corus came into effect and remained at that level until last year when
:03:58. > :04:05.they were abolished. So the US auto industry has a lot of problems, this
:04:06. > :04:09.Free Trade Agreement doesn't tell the whole story. I would go back to
:04:10. > :04:12.the figures you cited earlier, looking at job creation, there's
:04:13. > :04:16.evidence that suggests that tens of thousands of jobs created as a
:04:17. > :04:20.result of the agreement, if we are just looking at the impacts of
:04:21. > :04:24.direct foreign investment in companies, that figure is about
:04:25. > :04:30.45,000. What about South Korea? How that is this trade deal been for
:04:31. > :04:37.them? They are not calling for it to be axed like Donald Trump is? Well,
:04:38. > :04:43.for the South Korean side, these calls for renegotiations come at an
:04:44. > :04:47.unfortunate time, at a time of increased tensions tonne Korean
:04:48. > :04:51.peninsula when President Trump and President Moon need to coordinate as
:04:52. > :04:55.closely as possible and essentially having a trade dispute will make
:04:56. > :05:00.this very difficult. There was a pole published by a research centre
:05:01. > :05:03.recently suggesting that more South Koreans trust Vladimir Putin to do
:05:04. > :05:08.the right thing in International Affairs. They trust him more than
:05:09. > :05:15.they do Trump and so the perception of the US President essentially
:05:16. > :05:20.forcing renegotiation of a trade deal on one of the US's closest
:05:21. > :05:24.allies is not going to win him any friends. As far as the government
:05:25. > :05:27.and negotiating tactics are concerned, it seems like they'll try
:05:28. > :05:32.to delay negotiations as soon as possible. They see the deal as
:05:33. > :05:36.mutually beneficial and they have stated that any renegotiation will
:05:37. > :05:40.need to be preceded by a come preheroin sieve study of the impact
:05:41. > :05:47.of Corus since 2012, including on job creation. Briefly, Miha, last
:05:48. > :05:52.weekend's negotiations were inconclusive for NAFTA. What would
:05:53. > :05:55.be seen as a successful outcome of the negotiating talks there? It
:05:56. > :06:00.depends on which side you were to ask. Obviously, the key goal of the
:06:01. > :06:04.United states is to bring the deficit down, as well as South Korea
:06:05. > :06:10.seeing the deal as essentially win-win, as they frequently describe
:06:11. > :06:10.it. So I think there'll be a very difficult and protracted process
:06:11. > :06:15.ahead. Thank you very much. Let's take
:06:16. > :06:17.a look at some of the other Johnson Johnson has been ordered
:06:18. > :06:23.to pay more than $400m to a woman who says she developed ovarian
:06:24. > :06:25.cancer after using products Johnson Johnson has defended
:06:26. > :06:28.the products' safety The British Airline Pilots'
:06:29. > :06:34.Association says it's backed a strike by Thomas Cook pilots
:06:35. > :06:36.in a row over pay. The dispute comes after nearly eight
:06:37. > :06:40.months of negotiations over a pay Pilots will walk out
:06:41. > :06:45.on September the 8th. Shares in Great Wall Motor Company
:06:46. > :06:49.have been suspended The company admitted on Monday
:06:50. > :06:54.that it was interested in making an approach
:06:55. > :06:57.to Fiat Chrysler Automobiles, The mining giant BHP has
:06:58. > :07:04.returned to profit - making almost $5.9bn over
:07:05. > :07:07.the past twelve months. It got a big boost from
:07:08. > :07:11.higher commodity prices, and that helped it bounce back
:07:12. > :07:23.from a big loss last year. It's interesting because we have
:07:24. > :07:26.talked a lot recently about falling commodity prices and therefore the
:07:27. > :07:31.direct effect on companies like BHP is that they struggle. We have seen
:07:32. > :07:36.exactly the reverse this last few months? Absolutely, after doom and
:07:37. > :07:40.gloom across Australia which has benefitted a lot over the last
:07:41. > :07:46.decade from commodities, it could be back to the good times for companies
:07:47. > :07:53.like BHP who've made nearly $6 billion in profit, driven by the
:07:54. > :07:59.demand from China for prices being up 32% and also products like the
:08:00. > :08:03.coal and oil, the traditional commodities BHP sells across the
:08:04. > :08:07.world. A good day for them, especially considering last year's
:08:08. > :08:12.losses. Maybe not quite reaching as high as the analysts expected.
:08:13. > :08:16.Certainly the profits for Rio Tinto suggested the whole sector is in a
:08:17. > :08:27.boom time and still good enough to triple the dividends to the BHP
:08:28. > :08:29.shareholders. You can see on the screen there, the BHP share price up
:08:30. > :08:44.32%. We find out whether the Central
:08:45. > :08:48.Bankers will give anything away later.
:08:49. > :08:55.The chair of the US Fed and the President of the European Central
:08:56. > :09:03.Bank later will have their say. We heard one bright spot for Asian
:09:04. > :09:07.markets was the performance of the mining sector, all metals doing
:09:08. > :09:12.well. Let me show you what is happening in Europe. There'll be
:09:13. > :09:16.that interest later in the week in what Mario Dragi has to say. Any
:09:17. > :09:26.indication that the European Central Bank is thinking about cutting back
:09:27. > :09:29.with tapering, that may come later. Michelle has her assessment now on
:09:30. > :09:47.what matters on Wall Street today. Investors will be watching Cote's
:09:48. > :09:53.results, the perfume maker expected to announce a rise when it posts its
:09:54. > :10:00.results. Second quarter results out for other companies. Revenue at the
:10:01. > :10:05.Cloud based software firm is expected to go up despite increased
:10:06. > :10:12.opposition from Oracle. The housing market will be in the Spotlight this
:10:13. > :10:20.week, Toll Brothers turns in its results for the third quarter.
:10:21. > :10:24.Profits and revenue likely rose. The US federal housing agency is
:10:25. > :10:25.expected to increase housing price index for June.
:10:26. > :10:28.Joining us is Kathleen Brooks, research director at City Index.
:10:29. > :10:35.Thank you very much for coming in. Let's start with commodities, Ben
:10:36. > :10:39.and Hywel were talking about that with the BHP results. We are seeing
:10:40. > :10:45.a surge aren't we? Yes. The steel price has tone really well and the
:10:46. > :10:49.copper price. These less top tier commodities you don't hear about.
:10:50. > :10:53.All has been floundering a bit. If you dig deeper, there are things
:10:54. > :10:56.going on. When the fundamentals are doing well, that's when we should
:10:57. > :11:00.see the share price doing well. That's very good for the FTSE 100.
:11:01. > :11:05.The iron sector is worth about 20% of that. Where is that demand coming
:11:06. > :11:09.from? Traditionally it's been China popping it up, we have seen that
:11:10. > :11:12.slowing down in China and anecdotal evidence suggests it's not coming
:11:13. > :11:16.from China this time. Who is buying this stuff? You are seeing a
:11:17. > :11:21.mixture. When demand slows or growth slows in a big market like China,
:11:22. > :11:25.you see the commodity companies immediately start to ramp down
:11:26. > :11:29.production, so that leads to a bit of a supply issue in those commodity
:11:30. > :11:34.markets because it means there's not enough. So when growth starts to
:11:35. > :11:37.pick up again, like in Europe and the US growth is ticking along
:11:38. > :11:41.nicely, European growth is very strong and nice and broad-based as
:11:42. > :11:44.well, when you see that pick up, all of a sudden, there is a massive
:11:45. > :11:48.demand for the metals, shooting the price up. It's not as smooth as you
:11:49. > :11:51.think it would be. This morning I said what should we talk about and
:11:52. > :11:58.you were saying, there's nothing, it's quiet. Everybody's waiting a
:11:59. > :12:07.little bit for this Jackson Bank talks. What are you expecting them
:12:08. > :12:12.to say? Not much. You have different authorities, none of them want a
:12:13. > :12:16.strong currency husband we are in a Le inflation environment, high
:12:17. > :12:22.equity prices and strongish growth. The risk is, if you say something,
:12:23. > :12:26.say Mario Dragi says yes, we are going to taper, stocks will fall and
:12:27. > :12:30.the house of cards come down. It's a race to the bottom, no-one wants
:12:31. > :12:34.that to happen. We may talk about this again as the week goes on, if
:12:35. > :12:36.there's nothing else to talk about some times in August! For now, thank
:12:37. > :12:37.you very much. Still to come...the
:12:38. > :12:39.sound of success? Would you spend big money
:12:40. > :12:41.on posh, high end speakers? We meet the man behind one
:12:42. > :12:45.of France's audio success stories who's just secured 100 million
:12:46. > :12:48.euros in funding. You're with Business
:12:49. > :13:00.Live from BBC News. Supermarket sales in the UK
:13:01. > :13:03.grew 4% year on year, despite a bad summer
:13:04. > :13:06.hitting seasonal sales. Each of the top four supermarkets
:13:07. > :13:11.increased market share for the 5tgh quarter in a row, according
:13:12. > :13:14.to latest figures from Kantar. Theresa Wickham
:13:15. > :13:22.is a retail analyst. You have been looking through the
:13:23. > :13:25.numbers. Good morning. It's a familiar tale isn't it, that the
:13:26. > :13:28.supermarkets are all vying for the same customers but interesting
:13:29. > :13:34.they've managed to increase share? Yes, they have. They've tackled the
:13:35. > :13:38.point of the discounters very clearly by having less promotions
:13:39. > :13:43.and more regular prices. That's what customers want. Also they're growing
:13:44. > :13:49.their online sales, so they've had good growth this time. When we talk
:13:50. > :13:52.about the competition between the traditional supermarkets and the
:13:53. > :13:57.discounters, you're right, what a lot of customers have told us is
:13:58. > :14:01.just keep it simple, stop confusing us with all the offers. That
:14:02. > :14:05.message, you are suggesting, has got through now? Definitely it got
:14:06. > :14:10.through on the regular things people buy every week. They've tried to
:14:11. > :14:14.keep the prices low there and also advertise the fact, that this is a
:14:15. > :14:17.regular price, it won't change. Other prices have gone up, food has
:14:18. > :14:21.gone up and it's bound to go up, partly because of the weak pound.
:14:22. > :14:27.What are we spending our money on because we saw sales of ice-cream
:14:28. > :14:31.down 9%, burgers down 25%. That's a sad reflection of the summer we have
:14:32. > :14:38.had? Yes, we'll be buying a lot of fresh produce this time of the year.
:14:39. > :14:42.Fresh produce sales have gone up, strawberries, raspberries, that sort
:14:43. > :14:46.of thing and of course, once the schools are out, families are
:14:47. > :14:52.looking for big bulk buys and shop for value.
:14:53. > :15:03.If we look on the BBC News website one of our tops Tory tizz about the
:15:04. > :15:11.Ford scrappage scheme. Scrappage scheme for pre-2010 cars. They are
:15:12. > :15:17.also accepting petrol cars, but cars registered before 2010. This is
:15:18. > :15:21.really to do with all those manufacturers coming together trying
:15:22. > :15:26.to do something about the clean air issue and moving towards electric,
:15:27. > :15:30.towards hybrid. Just a month ago we reported the UK Government said by
:15:31. > :15:34.2040 we would be looking towards all new hybrid and electric cars, no
:15:35. > :15:40.more petrol or diesel. Full details on the website.
:15:41. > :15:45.Our top story - South Korea and US began talks on possible revisions
:15:46. > :15:48.to a five-year-old free trade agreement, as the US
:15:49. > :15:50.Administration seeks to follow through on President Trump's
:15:51. > :16:01.pledge to cut deficits with trading partners.
:16:02. > :16:07.There is a big trade deficit. America importing more from South
:16:08. > :16:07.Korea than it sells. President Trump does not like that.
:16:08. > :16:11.A quick look at how markets are faring.
:16:12. > :16:18.Not a huge amount of movement. The FTSE and the Dax up about half
:16:19. > :16:24.percent. Lots of investors waiting to see what happen? Towards the end
:16:25. > :16:29.of the week, waiting to hear from the central bankers. She believes
:16:30. > :16:30.will not get any big headlines. We will keep talking about the market
:16:31. > :16:31.spooling through this. Now, how do you listen
:16:32. > :16:33.to your music? Or with super hi-tech,
:16:34. > :16:38.top notch speakers? Well apparently the market for high
:16:39. > :16:41.end, expensive audio Devialet makes them,
:16:42. > :16:48.and has just received one of the biggest funding
:16:49. > :16:50.rounds in French history, raising over $100
:16:51. > :16:52.million from companies, Devialet's co-founder
:16:53. > :17:10.and chief executive, Quentin, thanks for coming in. Tell
:17:11. > :17:14.us why you got involved with this in the first place? You talk about
:17:15. > :17:22.sound being about emotion. Where does that, from? It is coming from a
:17:23. > :17:33.dream when I was very young, 40 years ago. My dream was to create a
:17:34. > :17:37.company in audio. One day, ten years ago, my friend called me and he had
:17:38. > :17:40.found a guy who had invented a wonderful technology to amplify the
:17:41. > :17:49.sound. This technology can change everything. We founded it together
:17:50. > :17:54.and said up the company in 2007. From this time, what we are going to
:17:55. > :17:59.do is put out technology step-by-step in any device providing
:18:00. > :18:05.sound. This is the kind of device we are doing with the Devialet brand.
:18:06. > :18:09.The plan is to put the technology in your car, your TV, your smartphone,
:18:10. > :18:14.and provide the sound of the future, more emotion. You are trying to put
:18:15. > :18:20.it in these different devices. It strikes me like -- that devices like
:18:21. > :18:24.these are getting smaller and televisions are getting flatter.
:18:25. > :18:31.Speakers need space to move the air and make the sound. How do you do
:18:32. > :18:35.that? It is already what we are doing with this product. This
:18:36. > :18:41.product should be 30 times bigger to provide the sound it is providing.
:18:42. > :18:51.Our technology, because we are using hybrid technology, our technology is
:18:52. > :18:58.changing the way that we are providing the signal to the speaker.
:18:59. > :19:02.With this technology we can reduce the size of the audio equipment. It
:19:03. > :19:12.is a big advantage. With this product we reduce the size. This
:19:13. > :19:20.product is providing 14 hertz. You don't need that kind of sound in
:19:21. > :19:24.your smartphone. Step-by-step we will provide this technology. We
:19:25. > :19:31.will provide a great sound in a tiny space. Just like your smartphone.
:19:32. > :19:35.You say you can do it better than anybody else. What is different
:19:36. > :19:40.about the sound that you create and is it -- do you have to be a sound
:19:41. > :19:49.engineer to hear the difference? No, everybody can feel it. When we are
:19:50. > :19:55.talking about someday, a lot of people say they are not experts,
:19:56. > :20:01.physicians, but switch off the image in your TV and when you are watching
:20:02. > :20:09.a movie a lot of the emotion is coming from the sand. And everybody
:20:10. > :20:12.is able to feel it. What we are providing is sound without noise,
:20:13. > :20:19.without distortion, the pure sound of the reality. You are able to feel
:20:20. > :20:25.it. We are very skilled. We have wonderful abilities to recognise a
:20:26. > :20:30.very pure sound. You talk about putting such technology in things
:20:31. > :20:34.like cars. It strikes me if you are driving in a car, you have got
:20:35. > :20:39.traffic noise, sirens, horns, people around you. It is not that pure
:20:40. > :20:44.environment. It's not like you are sat in your lounge with a big-screen
:20:45. > :20:50.TV and cinema. It would be noisy. Is it necessary? We love that because
:20:51. > :20:54.there are a lot of problems to fix. The kind of application in your car
:20:55. > :21:02.is different to what you can have in your TV and your living room. In
:21:03. > :21:06.your car you have sound insulation. You have to deliver a different
:21:07. > :21:10.sound for the driver. Safety information, routing information
:21:11. > :21:15.access. The driver can listen to one thing and the passengers something
:21:16. > :21:25.else? Yes. At the same time the car is autonomous, electric. You are
:21:26. > :21:30.saving kilometres. You are able to deliver a car that can go further.
:21:31. > :21:36.That is the purpose of our technology. To be smaller and to be
:21:37. > :21:41.lighter, and in a car to fix many problems you have delivering with
:21:42. > :21:45.the sound in different places in the car. Quentin, thank you for your
:21:46. > :21:46.time. Thank you. In a moment we'll take a look
:21:47. > :21:49.through the Business Pages but first here's a quick reminder of how
:21:50. > :21:59.to get in touch with us. The businesslike pages where you can
:22:00. > :22:06.stay ahead with all of the days breaking news. We will keep you up
:22:07. > :22:10.to date with insight and analysis from our team of editors around the
:22:11. > :22:20.world. We want to hear from you. Get involved on the Business Live web
:22:21. > :22:27.page. You can find us on Twitter and Facebook. Business Live on TV and
:22:28. > :22:31.online whenever you need to know. We are joined now by Dominic
:22:32. > :22:37.O'Connell to talk smack through all of the business news happening
:22:38. > :22:44.today. You picked up the Ford scrappage scheme story. Any car you
:22:45. > :22:48.take them that is older than February 2009, they will give you a
:22:49. > :22:51.?2000 incentive. It is about air quality, that is what they are
:22:52. > :22:57.claiming. Really it is about political heat on car-makers over
:22:58. > :23:03.diesel, I think. Volkswagen in Germany is offering you 10,000 euros
:23:04. > :23:11.to buy a new diesel car. The one difference with Ford, they are
:23:12. > :23:18.scrapping old cars. This applies to petrol cars as well? Yes. It has
:23:19. > :23:28.just been diesel before that. Previous scrappage scheme -- schemes
:23:29. > :23:37.have been from governments. Getting the wheels of the economy turning.
:23:38. > :23:46.Excuse the pun! Car sales are reducing. It is about clean air
:23:47. > :23:54.quality. The Trumps bar Lago club losing its ninth big charity event
:23:55. > :23:58.this week. It is interesting. This is Donald Trump's main resort in
:23:59. > :24:06.Florida. A local charity has said it will not hold a dinner dance there.
:24:07. > :24:12.$240,000 worth of business has passed Trump by. They say they can't
:24:13. > :24:18.book it. There are negative effects on Trump's business. He will know
:24:19. > :24:23.that. You will think about it. That is quite a personal thing. When he
:24:24. > :24:30.goes down there in the winter, the ballrooms will be empty. Absolutely.
:24:31. > :24:34.It was thought that he would use the presidency to further his business
:24:35. > :24:39.interests. He didn't think it would harm them. I would imagine that
:24:40. > :24:43.O'Connell Towers is a vast palatial mansion. We are talking about
:24:44. > :24:47.microforms today. House prices soaring in the UK. Some people
:24:48. > :24:55.living in smaller houses. A lot of people getting in touch saying the
:24:56. > :24:59.problem with cities, we have some e-mails. Caleb says house prices
:25:00. > :25:04.have allowed these hot property prices to bloom to nonsensical
:25:05. > :25:09.figures. It is a problem, isn't it? It is a problem of urban
:25:10. > :25:12.concentration, rising house prices. Microforms are a feature of the
:25:13. > :25:16.Japanese market. They have been in London for a while as well. It is
:25:17. > :25:20.not particularly new. What is interesting about this story is it
:25:21. > :25:25.is spreading to the Midlands. Some of the smallest properties they
:25:26. > :25:28.found were in Leicester. They found one which was one square metre
:25:29. > :25:32.larger than a prison cell. That was in Greenwich in London. No thank
:25:33. > :25:40.you. Thank you. Macy says she has just
:25:41. > :25:44.moved to the country. Live with nature, you get a bigger house.
:25:45. > :25:49.Oscar says his student house was perfect for one person. Thank you
:25:50. > :25:52.for your comments. There will be more business
:25:53. > :25:56.news throughout the day on the BBC Live web page,
:25:57. > :26:10.and on World Business Report. Good morning. We have got a lot of
:26:11. > :26:15.tropical air sitting across many parts of the UK at the moment. That
:26:16. > :26:21.is bringing a muggy start. Temperatures widely into the mid to
:26:22. > :26:22.high teens. Also, a lot of tropical moisture