Browse content similar to 08/11/2017. Check below for episodes and series from the same categories and more!
This is Business Live from BBC
News with Sally Bundock
and Jamie Robertson.
Scaling the Chinese Wall -
will the US President put past trade
tensions behind him to win
the support in America's
top trade partner?
Live from London,
that's our top story.
President Trump and the First Lady
have just landed in China and they
have met president Xi.
The nuclear threat posed
by North Korea is dominating
the agenda but Mr Trump is also
expected to take aim at trade
relations between China and the US.
Also in the programme.
Investor's patience snaps -
Snapchat is loved by
teenagers but shares in its owner
plunged almost 20% in after losses
in the struggling app trebled.
The European trading day is under
way. Most of the share markets are
headed higher. Our markets guest
will fill you in on all you need to
And we'll get the inside track
on the all important
inflight experience -
we've all had a bad or memorable one
- so how do plane-makers deliver
what passenger actually want?
We will hear from man whose job
it is to make the cabin
a place you'd want to be.
So today we want to know what's most
important to you when you fly?
Let us know.
Just use the hashtag #BBCBizLive.
Hello and welcome to Business Live.
I will soon be on a long haul flight
with three little boys. I don't
think anyone can help me. I'm
The leaders of two economic
powerhouses meet today.
It was all smiles on the tarmac.
US President Donald Trump
is in Beijing as part of a marathon
Asia tour and is set to announce
billions of dollars
in deals to address a trade
inbalance with China.
China is America's largest trading
partner, but it's a tense
relationship largely due
to a yawning trade gap,
which means America buys more
from China than it sells to it,
that was nearly $350
billion last year.
Trump has bolstered his presence
with a team of corporate big wigs,
including bosses of Goldman Sachs,
Boeing and energy firm Texas.
He aims to sign deals that mean
China buys more US goods,
from farming to energy.
The Trump administration is also
threatening to impose import tariffs
of around 20% on steel from China
and other nations, as it tries
to adress a global glut
and protect its domestic industry.
The US has already imposed
preliminary import duties,
between 97% and 162%,
on Chinese aluminium foil,
saying the goods are being sold
at unfair low prices.
The US is also investigating claims
that China has stolen US
ignoring patent and copyright rules.
Steve McDonnell is in Beijing.
Steve, it has been a huge amount of
talk about war on this Asia trip.
War on the Korean peninsula,
possibly, you never know and trade
war with China. What's he been
saying? What are the chances the
idea of trade war with China?
well, of course, the two big
subjects, you're right are North
Korea's nuclear weapons and trade
relations on this trip to Asia from
Donald Trump. Now I think the
message here, although we haven't
heard from him yet is going to be
similar to what we heard in Japan
and South Korea which was that China
and Japan and South Korea have
unfair trade relations when it comes
to the United States. Now, there is
quite some debate about this and as
we speak, Donald Trump is inside the
forbidden city. I guess initially it
could be pleasantries and the like,
but they will be getting down to
serious talks over the coming two
days and what we might expect, when
the leaders meet, especially in
another country, they love to have
an announceable in diplomatic speak,
keep an eye out where it might be an
announcement about China investing
in the US in some way or some sort
of a deal along those lines because
it makes it appear like there is
some sort of movement on this
question of the trade imbalance that
we were just speaking about.
does the Chinese president want out
of this, do you think?
think, you know, for him, of course,
it is the same for Donald Trump,
these two countries so need each
other when it comes to the economy
and it's why, you know, they are
banding together also to try and
sort out the problem with North
Korea's nuclear weapons because
China hates destabilisation. It
wants things to be calm and steady
for trade and commerce and relations
in the region. And that is a threat.
So it's also an economic threat when
they are talking about the pressure
that North Korea is bringing to bear
on other countries and so, yes, I
think both countries would like to
see a much better flow of commerce,
but they do have their differences.
I mean for example, there are all
sorts of industries here that
foreigners, foreign companies cannot
invest in. You can't buy a Chinese
cold mine for example or Chinese
steel mill and for many industries,
unless you're doing it with a sort
of co-operation, joint venture with
the Chinese outfit then you can't do
business in China. Other countries
including the United States are
saying that's not fair because we
let Chinese countries Chinese
companies come to our country and
these are the things that they will
be trying to nut out.
Let's take a look at some of
the other stories making the news.
Shares in the owner of Snapchat have
plunged in after hours trading
after the firm reported losses
of more than $400 million
in the last three months.
The company struggled to attract
new users and had lower
than expected revenue.
Snap says it is now working
to overhaul the messaging app.
We will have more in a moment.
Sky has suggested it is open
to shutting down its news channel
in order to facilitate its takeover
by Rupert Murdoch's
21st Century Fox.
Fox already owns 39% of Sky,
but regulators are investigating
the deal amid concerns that
Mr Murdoch's media empire
could become too powerful.
Twitter has doubled its tweet limit
to 280 characters in a bid
to draw in more users.
The company announced
an experiment in September
which will now be rolled out
to users worldwide.
The decision is part of plans to try
and boost engagement
at the social network.
Have you done it yet?
more than 140 characters.
I think it
is really important to have that
discipline of the 140 or whatever it
I have been waffling like mad.
It encourages wafflers. They say
teenagers have become better at
writing because they are more
concise. They put likes like U.
Never mind, that's just carping. I
wanted the picture of groundhog.
are going to have to explain why it
It is Groundhog Day for
marks and spender. We will be
talking about M&S more in a while.
Nissan has lowered its annual profit
forecast by almost 6%
after a certification scandal forced
it to recall more than
a million vehicles.
The Japanese car-maker revealed last
month that unqualified technicians
had been carrying out the
inspections of vehicles for decades.
Leisha Santorelli is in Singapore.
Tell us more about Nissan?
Well, Sally, this is a poor result
for Nissan given its biggest rivals
Honda and Toyota just raised their
profit outlooks when they reported
this. Is due to several reasons,
sales in the US has not been doing
well. Nissan had to make
compensation payments in the US for
cases by the faulty airbags. The
biggest reason has to do with the
certification scandal, Nissan was
forced to stop production for nearly
a month and six factories produce
about 1,000 cars a day for the
Japanese market. That really hit the
deliveries in October. So
reputationly, this is very damaging
to Nissan's new chief executive
officer who took over in April and
he promised to get to the bottom of
the mess, but the good news is
analysts believe the certification
scandal at Nissan will only have a
temporary impact on earnings so the
outlook past this next financial
year maybe brighter since we have a
Toyota doing well today on markets.
Its shares up 1%. Japan as well
closing up on the day, 23 points.
Nothing too dramatic, but a slight
increase, but you can see across
Asia, it was a mixed day, if not a
flat day. Let's look at Europe now.
Marks & Spencer. Their pre-tax
profits down by 5.3%. The news that
their chief financial officer Helen
Weir is going. We are not sure why
she is going, but a lot of changes
at the top with the Director of
Clothing at MAS gone. M&S shares
flat, but markets headed slightly
up. We will talk more on markets.
Here is more detail on Snapchat.
Snapchat had its best day nine
months ago back in March,
when it first started trading
on the New York Stock Exchange.
Its share price skyrocketed that day
by 44%, but since then it's
been a steady decline.
The business is not growing the way
investors had hoped.
This past quarter, Snapchat's daily
active users only grew by 17%.
They are facing some
stiff competition from
Another big setback
has been advertising.
Smaller advertisers still haven't
figured out how, or even why,
they should advertise on Snapchat.
Now, compare that to Facebook,
which made $10 billion
from advertising in just
the last quarter.
Snap execs have asked
for patience from investors,
but just how long will they wait
before jumping ship?
Time could be running out
for the little app that was built
just five years ago by a couple
of kids in college.
Joining us is Lawrence Gosling,
editor in chief of Investment Week.
Good morning. It looks
like a bit of a disaster. I have to
say. Talking about Twitter
increasing the number of characters
as well, the pressure on Snapchat
looks humongous to me and difficult
to see how they can innovate their
way out of this problem. Their
losses are getting bigger. Market is
giving up hope on them and more
importantly, they are not attracting
as many users. My children don't
talk about it very much anymore.
that because they are snapping and
not talking to you?
No, they are
definitely talking to me! They are
using different platforms to
communicate with their friends.
Doesn't it emphasise the difficulty
you have now, coming under the radar
and trying to get a place in this
market which is so dominated by the
Facebooks and the Googles and the
You have got to come in
with something that's truly
disruptive and something...
they just buy you out or copy you?
It is easy.
Facebook tried to buy
If you are a big company, it
is easier to buy it or copy t it is
cheaper to copy in reality
particularly if you are buying a
business with $400 million of
A lot going on
there. The CFO, the Director of
Clothing has gone and profits going
down and margins squeezed. It is
It is a bit like
Snapchat, a horrible place to be.
New chairman, Archie Norman who has
a great reputation for turning
businesses around, so not too much
of a surprise to see senior people
going, but the bottom line is, their
clothing offering is not one that's
universally popular. They have kind
of lost focus.
But the money they
make on their food has been really
That's the lesson of the
rest of the food retailers, the
there, because we are going to talk
about the papers in a while. See you
in a second.
Still to come.
What's most important
to you when you board an aiplane,
being on time, comfortable seat
or access to the internet?
One viewer says legroom.
else said landing!
We ask the head of cabin services at
Airbus about the future of flying.
You're with Business
Live from BBC News.
And in the last hour
Marks and Spencer has
revealed its half-year results.
It used to be the darling of the
high street. It had a tough
S Pre-tax down 5.3%. News
that the retailer's chief financial
officer, Helen Weir is stepping
Mike Ingram is the Chief Market
Strategist for WH Ireland.
He joins us now from our newsroom.
There seems to be a lot of things
going on at the top of the
management. Is that a problem?
potentially because of course, the
business faces a lot of challenges.
The results that you mentioned
weren't as bad as the market
expectation. We were perhaps looking
for a 10% decline in profitability,
it was down 5.3% better like for
likes in food and clothing, but at
the end of the day, costing
pressures remain intense
particularly on the food business.
Having spoken to the company a
little bit earlier on this morning,
they are actually seem to be
throttling back on this huge Simply
Food roll-out which they were
projecting only 12 months ago, again
showing that the pricing environment
isn't favourable. Yes, the clothing
margins came back somewhat. We were
expecting a 2% decline in like for
likes. Is that going to be sustain?
The Director of Clothing and beauty
left after #13407b9s 10 months and
it is the former Chief Executive of
Halfords who is in charge of that
What do you think the outlook is
like? We've got all that change as
you've just mentioned. Stephen Roe
the boss has come up with his
five-year plan. We've got the recent
introduction of Archie Norman.
What's your outlook that M and S?
When Steve Rowe unveiled his
turnaround plan about five months
ago he described it as fixed
stabilise and grow. We were still
firmly in that fix stage. These
results are rather better. But it's
very clear that they are scaling
back on food and they need to
accelerate the clothing reduction.
Thank you. Sorry to interrupt you.
Mike Ingram from WH Ireland. The
energy company SSE says it is going
to merge with NPower.
You're watching Business
Live - our top story.
It is President Trump and the first
Lady. They have arrived in Beijing.
They've met President Xi. Of course
the agenda is pretty packed. North
Korea will dominate but trade is
also firmly on President Trump's
A quick look at how
markets are faring.
The European markets started just up
but not a huge amount.
And now let's get the inside track
on airplane cabins.
The industry is working hard
to improve the limited cabin
space, at least in first
and business class.
So, what do you see as the most
important areas for improvement?
A more comfortable seat?
Or is a great view your thing
and you want bigger windows?
Or is it all about inflight
entertainment and connectivity
To get an insider's view Ben met up
with Airbus' Vice President
for Cabin Marketing, Ingo Wuggetzer.
what we find out in market research
is they want the same product and
services like they have on the
There should be a seamless
transition if you are at home, at
work or on an aircraft. It should be
the same experience, maybe even
Are we seeing the days of
getting on a plane where you were
out of contact for eight hours or 12
hours, where you couldn't work
particularly productively, you went
in contact with the office or
friends or family, those days are
I think that's the choice
of the passenger. It really depends.
If you can sleep, maybe you would
prefer that service. If you cannot
sleep, and I think 90% of passengers
are still flying economy. They use
in-flight entertainment or a
connectivity system to make their
travel very individual, using those
applications they use at home.
other things that are holding back
innovation as far as the airline
passenger experience is concerned?
There is some limitation on the
technical side. You have to use some
satellites so the bandwidth might be
not enough, not fast enough to serve
600 passengers on an aircraft for
streaming applications and so one.
When you are considering what you
put on your next aircraft, how do
you make those decisions? By the
time you've got those aircraft in
service, the technology has already
Exactly. The software is a
lot faster than hardware. That's why
we approached our last aircraft as a
modular platform. That makes it a
lot easier to cope with. You can
Is there a danger that
this innovation stalls? Airline
simply can't afford to put things on
board any more.
Anything you talk
about aircraft, it's always
expensive. You have to provide a
certain safety level. That is still
something that people want.
picture of what air travel will look
like five years from now.
of the cabin, I think we find the
same structure but a higher
segmentation. People have the same
tube but the segmentation in the
aircraft will change. We'll probably
find up to six different classes or
zones, whatever you call it. You can
select a tailor-made product for
different market needs. This is a
strong trend that we've seen. In
terms of connectivity, I think it
will become really seamless.
Everybody can use their phone easily
and will connect automatically. We
also find a lot of opportunities in
modern cabins to customise your
experience. You will have a lot of
LED lighting that will create a
spaciousness but also customised
Tell me about ten,
15, 20 years. What are you working
on now that will take that amount of
time but you've already got an idea
of how it will look?
vision, for future travel, to be
honest, so you are sitting in an
aircraft that has a transparent
skin. You can look outside, enjoy
the space around you, feel great
about that, and then have a seat
that moves with your body. That's
the most comfortable seat you can
get. You can also get some help
treatment on the trip so you can
arrive healthier than you started.
That was the Airbuses vice president
talking and we asked you what was
most important to you when you're on
Ben says non-reclining
seats and power sockets.
said simply landing, getting there.
Where do you normally
sit? I'm always near the toilet and
it's always smelly.
I was near the
door. They tell you that you have to
help out if gate-crash!
How did you
get a seat near the door?
We need Aaron, you always
sits at the front I'm sure of it. We
are going to talk about this story
which is interesting to us being in
the world of telly. Sky threatening
to close at Sky News if the fox deal
is blocked. I feel like this has
been going on forever. Sky's
attempts to get full ownership of
It has and it feels
like they are chucking the kitchen
sink into making the market
authority feel comfortable with the
deal. I suspect Sky News doesn't
make much money for Sky. From a
commercial perspective it would
probably work but that's not good
for viewers in the UK looking for a
wider set of news channels.
get rid of it, close it down. He's
not going to sell it off which would
be different. It is a threat to the
UK is saying you're going to have
one less major news channel.
and the criticism against Sky is
always that they have too much
monopolistic media power. Take away
a news channel and arguably other
organisations fill that void.
to give our international viewers
perspective on this, they may not
realise to what extent this
organisation dominates the media in
the UK. It's not just broadcast but
it's also many print, but then that
Yes. Obviously the News
of the World is no longer. It is a
big organisation. The football right
through the Premier League has grown
through Sky's distribution of it.
It's an incredibly important
And their political
influence through print newspapers
is a lot less than it used to be.
Absolutely, because the world is
going more digital. Some of their
print titles haven't transition does
You could argue that they
having kept pace in the digital
No, because it is a difficult
migration to take a classic
newspaper reader over to the digital
When you're on a plane, the
most important thing?
lighting so I can read. Also I would
be with the number climbing feats
because it's the bane of my life
when someone pushes the seat right
You can recline your stock
Nottage lost that right at
-- not if you're
sitting right at the back.
nothing worse than spending however
many hours with your knees up by
your chest! Thank you for coming in.
Thank you for your comments.