10/11/2017 BBC Business Live

This is Business Live from BBC News

with Sally Bundock and Alice Baxter.

President Trump renews his pledge

to rebalance American trade

but warns he'll be selective

about the deals he does.

Live from London, that's our top

story on Friday, 10th November.

As 11 countries try to get one

of world's biggest free

trade deals back on track

without the United States,

President Trump says

he will do bilateral deals.

We'll be live to the APEC summit

in Vietnam for the latest.

Also in the programme...

Japan's third biggest steel-maker

blames a lack of control

for the scandal which led car

and plane makers worldwide to check

the safety of their products.

And markets in Europe are edging

higher

And markets in Europe are edging

higher as traders begin to wrap up

their working week. We will talk you

through the market movers and

shakers.

And we'll be getting

the inside track on all the big

stories of the week, including

President Trump's tour of Asia

And the slow progress of Brexit

negotiations. That is all coming up

with our economics editor, Kamal

Ahmed.

And as one of the founding fathers

of Facebook, Sean Parker,

sounds the alarm over social media,

describing it as a "time-sink",

we want to know how the social

media phenomenon has

changed your behaviour

and that of your children.

Let us know - just use

the hashtag #BBCBizLive.

A warm welcome to Business Live, we

have the Friday feeling today and we

have a lot to pack in so let's get

cracking. Starting with US President

Donald Trump who had a clear message

for the leaders gathered at the

Asia-Pacific economic cooperation

summit in Vietnam, if you want to

trade with the world's big economy

you will have to reach a bilateral

deal. This as delegates from the

other 11 countries try to save a

deal that he has pulled out shortly

after he moved into the White House.

If it did include the United States,

the TPP would have included 12

countries whose economies are worth

some $29 trillion. That is about 38%

of the world's economy.

But the world's biggest economy,

the USA, is so big that without them

it's only worth $10 trillion -

or just 13.5% of the world economy.

The remaining 11 nations

would benefit from lower tariffs

as well as new rules for labour,

the environment and

intellectual property.

But the US retreat from the deal

is also providing a big

opportunity for China.

Here's what the US and Chinese

leaders had to say.

I will make bilateral trade

agreements with any Indo-Pacific

nation that wants to be our partner,

and that will abide

by the principles of fair

and reciprocal trade.

What we will no longer do is enter

into large agreements

that tie our hands,

surrender our sovereignty,

and make meaningful enforcement

practically impossible.

TRANSLATION:

Openness brings

progress, while self-seclusion

leaves one behind.

We, the Asia-Pacific economies,

know this too well from our own

development experience.

We should put in place a regional

cooperation framework that ensures

consultation among equals,

wide participation,

and shared benefits.

Karishma Vaswani is outside the APEC

conference in Da Nang, Vietnam.

Leaders of the two largest economies

in the world giving two very

different speeches. What did you

make of them?

Yes, I think those two sound bites

that you heard from President Trump

and President Xi showed the contrast

in what they have to say. On the one

hand, Donald Trump saying he will do

business with America at the centre

of all of his transactions, America

First, and any country that wants to

do business with me will have do

deal with me in a bilateral fashion.

Whereas President Xi was really

talking about China's leadership

role in the region, it is about

consensus, building opportunity. He

mentioned things like artificial

intelligence, the Digital economy,

opportunities for growth, really

pushing China out there as a

visionary for the Asia-Pacific

region. He talked about the one belt

one road programme, saying it may be

a Chinese initiative but it is also

one for the world. Meanwhile,

against the backdrop of all of this,

the TPP, the transpacific

partnership agreement, with the 11

economies, Apec economies that were

left behind after Donald Trump

pulled out of the trade deal, are

still scrambling, trying to get this

massive trade deal through, and we

are hearing reports that some kind

of agreement may come together at

some point today or perhaps tomorrow

when this summit ends, but the stark

contrast between what Donald Trump

had to say and what President Xi had

to say I think will be followed

extremely closely by members of the

Apec economies as well as the wider

Asia-Pacific region.

Considering how conciliatory the

town has been that Donald Trump has

struck so far on his Asian tour,

particularly in China, did it come

as a surprise when he came out so

strongly earlier today talking about

trade imbalances, product dumping,

currency manipulation. He did not

name any country specifically. You

were in the room at the time, what

was the atmosphere like?

Well, I think people were expecting

him to say something about unfair

trade, every single delegate or

foreign leader that I have spoken to

in the lead up to his speech said

they did expect him to kind of

present the US vision for itself in

the Asia-Pacific region, but you are

absolutely right, he outlined very

definitely all the ways in which the

US has been a victim of global

trade, and all the things that he

talked about, currency manipulation,

state-owned enterprises pushing

economic growth in some countries

further ahead, that sounds pretty

familiar, doesn't it? He is pretty

much making a veiled reference to

China without calling China out.

Indeed. Many thanks.

We will have more on that later.

Let's have a look at other stories

making the news.

One of the architects of the clause

which allows countries to leave

the European Union has told the BBC

that the British public shouldn't be

misled by Government claims that

Brexit can't be reversed.

Lord Kerr was talking as the sixth

round of Brexit talks get

underway in Brussels.

Prime Minister Theresa May has again

warned against efforts to slow

or stop the process.

China is lifting foreign ownership

limits on financial firms.

The move will be welcomed by the

world's biggest banks who want

access to the huge and lucrative

market there. Foreign firms will be

able to control joint ventures with

Chinese partners.

Walt Disney has seen annual profits

fall for the first time since 2009,

amid growing competition

from streaming

services like Netflix.

Shares, though, rallied after it

announced a deal to make three

new Star Wars movies.

The CEO refused to comment

on reports it has held talks

on a partial takeover

of 21st Century Fox,

but did not rule out

making an acquisition.

The plot thickens there.

The struggling Japanese steelmaker

Kobe Steel has blamed a lack

of control for its safety scandal.

Many of the world's biggest car

and planemakers have had

to check their products

because of fake safety data.

Leisha Santorelli is in Singapore.

Kobe Steel is something we follow

really closely, what have they told

us today?

Well, the Japanese Government Micro

had actually ordered Kobe Steel to

provide a detailed explanation of

how this cheating scandal could have

stretched on for so many years

undetected as well as to give

measures to...

Kobe Steel released a report in the

last hour, the CEO giving a press

conference, but aside from a lack of

control the company has control the

company has blamed the scandal on a

focus on profits but we have not

seen many other details emerge. The

Kobe Steel CEO and other senior

executives appear to be staying on

at the company, some analysts

believe they should step down, that

they should resign, to demonstrate

that such lapses in management are

not acceptable, especially since

this has damaged the reputation of

corporate Japan as well as the trust

in the quality of the products

coming out of the country.

OK, thank you very much indeed, the

latest there on Kobe Steel. Let's

look at the market in general in

Asia, a fairly flat day is not a bit

down. The main market in Tokyo

closing down by .8%, it was at a 21

year high yesterday, though, so

let's put it in perspective. Let's

look at Europe now, everything

edging slightly higher, no big moves

in either direction. Singles Day

tomorrow, the biggest shopping event

of the year, it is really what

Alibaba, less than ten years ago,

turned a quirky celebration of

single people in China into a

massive global shopping grabbing --

shopping extravaganza so companies

like Alibaba tomorrow will be making

billions of dollars of profit in

24-hour was, big event for Asia and

China in particular tomorrow.

Samira Hussain has the details about

what's ahead on Wall Street Today.

On Friday the department

store operator JCPenney

will be reporting earnings.

Last month JCPenney slashed

its full-year forecast after selling

some of the inventory

that just wasn't moving,

and they sold it massive discounts.

These earnings really come at a time

when the retail industry

is facing some tough times.

Retail giant Macy's,

Kohls and Nordstrom all reported

earnings on Thursday.

For example, Macy's,

while it beat expectations,

same-store sales fell,

indicating continued pressure

on getting customers

into physical locations.

The credit agency Equifax reported

earnings on Thursday but will only

be holding their call

with investors on Friday.

Really giving Wall Street time

to digest the numbers.

This was the first time we'd heard

from the credit agency

since a data breach that

compromised the information

of 145 million Americans.

You can expect that there will be

a lot of questions about

the company's future going forward.

Joining us is James Bevan,

chief investment officer at CCLA

Investment Management.

Wonderful to see you.

Brilliant to

be here, what fun.

I went to expand

on a story we mentioned earlier, the

news hot on the heels of Donald

Trump's visit to Beijing, China now

pledging to open up its financial

sector to more foreign ownership.

How big a movie this?

It is

significant, it will not happen

overnight, we should expect this to

happen over a period of years and

the early announcements made by

China talk about a five-year

transition. However, when one thinks

about what lies behind it, it is

about China wanting to be part of

the global economy in a very real

sense. I think a number of the huge

US players that have been in joint

ventures will now come back.

Let's

talk about the markets in general,

another bumper week, it would seem?

Asia yesterday, at one point

vindicate to do five at 821 year

high. Give us your take on the

markets?

It goes back to the China

story a game, China has been

exporting around $600 billion, they

have been buying up stock markets,

London houses, footballers, you name

it, China has been buying it, and it

has been a huge driver in terms of

market valuation but critically we

have had better global economic

news, corporate earnings are

stronger, that justifies higher

valuations. You say, how high can it

go? I said 2700 points, 18 times

forward earnings probably about

right, but I equally think there is

a risk of a belt of people piling

into markets, driving prices

significantly above fair value, from

which point eventually there will be

a correction.

And what will that be

like when it comes?

It will be

really nasty. The next bad market

will come when we start to talk and

think about recession. At the moment

we have a lot of economy is set to

expand at a fast rate and if we get

that Upton, we get a policy

response, down in global economy,

the rich valuations will come down

with a big bump.

I like that

prediction, it is going to get

really nasty.

Not until 2019, we

don't want to frighten people.

We

want to briefly touch on oil, how

interested are you in that?

I am

very interested in oil. When I look

at the oil price 82 macro drivers,

demand driver, how much people

buying? And a supply driver, in

terms of the global delivery of oil

into markets. At the moment I would

observe what we are looking at, the

concern is more the supply side

because of the political movement

going on in Saudi and tension

between Saudi and Iran. I don't

think this price hike we are seeing

at the moment will stick but I think

those concerns will dissipate.

Saudi

Arabia, isn't it, right now? The

prices are so high?

In the very

short term they will fall but what

they want is a stable price for

long-term planning and cash flow.

Thanks, James Comey you will come

back and talk through the papers in

a bid.

We have a lot on the agenda today.

We will get the inside track on the

big stories of course one man, maybe

two men, have dominated, president

Trump, President Xi Jinping have

pretty much been in the headlights

each day.

We will talk about that and also

Brexit talk, all coming up with our

economics editor Kamal Ahmed.

This is Business Live from BBC News.

The Royal Society, the country's

most respected science academy,

says we should be spending ten times

as much money teaching children

about computer science.

Joining us now from Salford

is Royal Society fellow

Professor Stephen Furber

of University of Manchester.

Thank you for joining us on the

programme. How serious a situation

is this?

The problem is there were

major changes in the school's

computer Greg curriculum a few years

ago and there hasn't been adequate

support for teachers to adjust to

the change. The new aspect include

aspects of computer science that are

challenging and we need more support

to make sure teachers can teach it

effectively.

In terms of how we do

globally, how do we compare when it

comes to investment in computer

sciences etc?

I don't know the

comparative international numbers,

but I think we are in the league

when it comes to moving to a proper

computer science curriculum in

schools. The problem is the current

setup is very fragile and it's

patchy. There are some excellent

examples of computer teaching in

schools, but fewer than half of

schools in England for computer

science at GCSE. It's not available

to all pupils and we feel strongly

all pupils should have the option of

studying computer science to GCSE.

Our pupils excited about it, in

general? Is there a demand for

people to study it?

The demand is

increasing steadily, but the demand

is related to how well the material

is delivered in schools and what

support they have in terms of

training teachers and having

appropriate equipment to do

practical work on. What for now,

thank you. Interesting, from the

University of Manchester.

We want to draw your attention to

the Christmas adverts on the BBC

website. It's the build-up to it.

I

like them all, no particular

retailer.

Not discriminating in any

way. We have a report on our website

at the Christmas advert spend is set

to hit a record high, the number

keeps on building every year. We are

expecting advertising agencies to

rake in £6 billion over the

Christmas period. Check out the

website for more on this.

You're watching Business Live -

our top story...

President Trump has told a gathering

of Asia's biggest economies

that the US will only do bilateral

trade deals that

are in its interests.

China's president told the same

summit globalisation

was irreversible.

was irreversible.

Looking at the markets quickly, it's

Friday. Fairly flat, if not a little

bit lacklustre as we edge towards

the weekend... Some long lunches may

be today.

It's been a big week

for the world economy -

not least because the leaders

of the two biggest - the USA

the USA and China -

have been doing deals.

And crunch time for Brexit talks

is fast approaching.

The next EU summit is fast

approaching in December. We can

grapple with all of this now.

Our economics editor,

Kamal Ahmed is here.

Let's start with President Trump. He

is at APEC right now. He's been on a

big tour of Asia.

I think this is a

significant week in terms of really

understanding, and we have spoken

about this so many times with Donald

Trump, how much was the rhetoric

reel in terms of policy responses

and economics, and how much would

actually start dissolving when he

realised the complexity of

relationships around the world. I

think this week with his visits to

Japan, South Korea, China, and now

to APEC, has revealed economic

reality has won out in the debate.

The very critical noises that came

out of the Trump camp before he was

elected president, on China and on

trade, has dissipated. I think there

is a reality that America, for

example, wants to do big energy

deals with China. One thing to think

about is Asia is not just China.

Japan, he is with APEC today, with

the Philippines and Vietnam. These

are countries that will be concerned

about some of China's expansionary

behaviour and will see the USA as

possibly an ally in challenging

that. Looking at the South China

Seas particularly and some of the

tensions there. We have seen the

economic reality for the USA. And

for China, America is a big

customer, so they want good

relationships. I think this week has

been about that.

What about the

change of stance on the part of the

US which we knew was coming. That is

to say, I will talk about bilateral

trade, forget about the big trade

deals like the Trans-Pacific

Partnership, with many countries

coming together. It will just be one

on one, assuming you talk about the

rules of fair and free trade. The

contrast with President Xi, the talk

of globalisation.

Again, some

contradictory messages from America.

America has continued its trade

negotiations with the European

Union, not pulling out of the

equivalent of the TTP with the

European Union, but it did with the

Asian free trade agreement. There is

the notion that with Asia there is

better to split the nations. I'm not

sure everybody is convinced that

Davos is a big, positive

globalisation force either. I think

America is becoming aware, and

frankly President Obama was aware of

this as well, it needs to pivot

towards Asia to ensure there is a

baron 's next of economic powers in

that region. -- a balanced mix of

economic powers.

Let's move onto

Brexit negotiations. Round six of

talks conclude today. Where are we?

I think there has been quite strong

progress on the three key issues,

the divorce bill of how much Britain

will pay to the European Union. On

Northern Ireland, I still think

there is great tension. That's the

issue about where Northern Ireland

sits, the only land border between

the United Kingdom and the rest of

the European Union, a very

complicated area. And also citizens

rights, EU citizens in Britain, and

British citizens in the rest of the

EU. Some progress there. But you are

absolutely right in your

introduction to say that what they

are looking towards is the EU summit

in December. While the EU allow the

beginnings of this trade

negotiation? This is the big issue.

The significant point here is, for

the exit issue, the EU 27 are

absolutely locked together, no

compromise on what they demand from

Britain before the exit of the EU is

agreed. When it gets to a trade

deal, the tensions between the EU 27

might start to be revealed, because

different countries will want

different relationships with

Britain. Countries that export

agriculture, countries that export

automobiles, countries that want to

use London as a financial centre. It

means the EU 27 might start to see

tensions coming through. I think the

free-trade bit of this, which they

might start talking about from

December, that's when the EU 27

might start seeing a bit of

fractiousness around their approach.

Many thanks. Really interesting.

Let's see what other

stories are being talked

about on social media.

This is how to stay in touch. The

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And we want to hear from you. Get

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Facebook. Business live, on TV and

online, whenever you need to know.

What other business stories has

the media been taking an interest

taking an interest in -

James Bevan is joining

us again to discuss.

The likes of Mark Zuckerberg and

Shaun Parker talking about the

toxicity of Facebook and social

media.

He has identified people get

hooked. We know this has always been

true. We are heavily motivated to

take up what we are told is going on

in the world. Think about Father

Christmas, his modern version is

created by the Coca-Cola company. We

have been in this situation for a

long time.

You can't say that the

BBC! We still believe he's out

there.

Santa Claus is still out

there. But giving him the little red

outfit and giving him the name is a

Coca-Cola inventions.

We had a huge

response from viewers. Many of you

have changed your behaviour because

of social media. Jerome says he

boycotts people who are obsessed

with their phones at social

gatherings and terms of Wi-Fi at

home. Another viewer, I left

Facebook months ago and it's the

best thing I did. Twitter is less

consuming. My millennial children

are all consumed by social media.

There is no putting the genie back

in a bubble. It's the end of

innocence. James is on Facebook to

keep an eye on your children.

I like

to keep an eye on what they are up

to. It's less invasive. They don't

post things they don't want me to

see. It's interesting, the

monetisation. It's working well. The

Facebook share price target is over

$200.

James, always good to have

you. Have a good day and we will see

you soon.