14/11/2017 BBC Business Live


14/11/2017

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LineFromTo

during his trip to Asia.

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But the devil may be in the detail.

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Live from London,

that's our top story

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on Tuesday the 14th November.

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President Trump says he's

open for free and fair

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international

trade but Asian leaders

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international trade but Asian

leaders still have their doubts -

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we get an expert view on just how

successful the mammoth

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Trump tour of Asia was.

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Also in the programme...Uber

and out.

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Another boss leaves the ride hailing

firm, this time in India.

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We'll cross to Mumbai

to find out more.

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He's the founder of Easyjet

and one of Europe's

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best known businessmen.

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Sir Stelios Haji-Ioannou

will be talking us about

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being a trailblazer and why it's

important to give back.

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And reports say pets are the latest

victim of the UK housing crisis,

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as houses get smaller with little

or no outside space.

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So we want to know - do

you still find space for your pet?

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Let us know, preferably

with pictures of your pets!

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Just use the hashtag #BBCBizLive.

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Hello and welcome to Business Live.

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To get the ball rolling I've already

tweeted a picture of my dog in the

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sea so have a look at that. Let's

start with the top business story.

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Five countries, nearly

two weeks, and billions

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of dollars in deal-making.

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Well that is the line

from the White House.

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After all, the President

is known to be a deal-maker.

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So much so, in fact,

that he's promised a major statement

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on trade before he arrives

back in Washington.

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That means the clock is ticking.

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The White House is touting

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the rather whopping figure

of $300 billion in deals

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during his trip of Asia.

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The lion's share of that

came during his trip

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to China - $250 billion.

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South Korea, Japan, and Vietnam make

up the remaining 50-odd billion.

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Mr Trump is still in

the Philippines, so we'll

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hold off on that figure.

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An announcement may come. This is

business and you have to pay

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attention to the small print.

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So dig a little deeper and you'll

see that some of these

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are Memoranda of Understanding -

MOUs - so more promises

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of agreements to come.

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Or they're deals that had

already been in the works,

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for months or even years.

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All will need official approval.

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Sarah Fowler, from the advisory firm

Oxford Analytica is with me.

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Nice to see you. Sally running

through the details and the small

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print, there's devil in the detail.

President Trump has been tweeting,

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saying lots of meetings and we will

turn them into great deals for our

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country, but I wonder if they are

really as good as they would have us

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believe.

I think there is a lot of

relief nothing disastrous has been

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tweeted but equally disappointment

because a lot of that 300 billion,

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some of it is not guaranteed. For

example I think there's an 80

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billion shale gas deal that is

subject to a lot of nonbinding

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clauses. There's also a feeling some

of the deals were already agreed,

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they just waited to announce them on

the big stage, as it were. I think

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the 38 billion Boeing deal for China

buying US aircraft, a lot of that

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was in the plans.

I think a lot of

the focus for President Trump has

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been the trade deficit that he sees

the US having with Asian countries

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and that has been a motivating

factor for him to try to rebalance

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that trade relationship.

His tone in

this trip has been slightly more

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conciliatory. Previously during his

campaign and early months in office,

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he blamed other countries for the

deficit. This trip, he has shifted

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his stance a little bit and he's

blaming previous US administrations

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for lowering barriers and not

insisting that other countries

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reciprocated. But actually good

service is only one part of the deal

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because the US runs a big services

surplus with many of the Asian

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countries and actually because the

Asian domestic markets are largely

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growing faster than the US, in many

cases to war three times,

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maintaining a good economic

relationship between the two is

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actually really important.

Overriding the tendency to attack on

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trade is the importance of

maintaining good relations for both

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sides.

We have heard so much from

President Trump and he has blamed

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other administrations for the trade

deals, things he's tried to get out

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of, yet you might think those are

the things that would help that

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trade relationship. I suppose there

are some unofficial ones in place

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already.

Trump has been quite

positive on this trip about the

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bilateral deals with individual

countries, and when he was in Japan

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last week, he and Abe were both

quite positive on working towards a

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free trade deal. When he was in

South Korea the tone was also quite

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conciliatory in terms of

renegotiating, talking about the

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career free trade deal. -- Korea. He

has been less supportive on the

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multilateralism. The US taking less

of global governance may give China

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more impetus in that area to take

more global responsibility, which is

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also bringing the rest of the world

together for more cooperation,

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climate change, less protectionism

against each other. We may also see

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with the rest of Asia TBP ex-US is

also on the cards.

It is pretty

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complicated but thank you for

explaining it.

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Let's take a look at some of

the other stories making the news.

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Credit Suisse has agreed to pay

a settlement of $135 million

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after regulators in New York

found its foreign exchange unit

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was involved in unlawful conduct.

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It's the latest settlement to emerge

from a global investigation

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into foreign currency markets.

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Credit Suisse said it was pleased

"to put this matter behind it".

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Goldman Sachs has written off

the value of its stake

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in the Weinstein Company

after claims from

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more than 50 women.

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that ex-chairman Harvey Weinstein

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sexually harassed or assaulted them.

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Weinstein has denied the claims

but the firm is seeking fresh

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funding after a number

of investors severed links.

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Shares in toymaker Mattel -

which owns Barbie -

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jumped 20% after reports that rival

Hasbro could be

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considering a takeover.

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Hasbro, the owner of Play Doh

and My Little Pony, were also up.

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Last month, shares in both companies

fell on concerns that the bankruptcy

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of Toys R Us could hurt sales.

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Let's head to India, where Uber's

chief of policy for the country

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and South Asia has quit.

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It's the latest high-level departure

at the ride-hailing firm.

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Our correspondent

Yogita Limaye is in

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Mumbai with the details.

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We have had a confirmation from both

the company as well as the executive

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about the exit. Neither has given a

reason but eyebrows have been raised

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because she has only been in the job

about a year. She was mainly there

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to liaise with the Government, and

policymakers in South Asia. This

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follows a slew of Uber exits around

the world, the head of London Uber

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as well, and in India, which is its

most important market after the US,

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Uber also faces stiff competition

from its domestic rival. But it

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seems to have been a mixed bag of

all week for the company. It also

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put out a statement yesterday saying

it had agreed with a consortium led

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by Softbank about a potential

investment in the country. We've

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also had a statement from Softbank

today which confirms they are

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considering this investment but they

do say no deal has been reached so

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far and if the price is not good

enough for them they could pull out.

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Basically Uber saying they could in

the coming months have an investment

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from Softbank.

OK, we will keep an

eye on that. So people at top

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level at Uber going, but at the same

time Uber doing deals. The markets

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are down, profit-taking going on to

a certain extent in Asia. Looking at

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Europe, for the UK in general very

much on inflation watch, we will

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have the numbers at 9:30am this

morning but we have had good

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readings from Vodafone, better than

expected. Tesco shares up, they have

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a deal to take over Booker.

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And Samira Hussain has

the details about what's ahead

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on Wall Street Today.

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The biggest high-profile hedge fund

investors will reveal their

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third-quarter purchases and sales of

such closely watched stocks like

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Apple and Amazon .com. Other than

being a fascinating snapshot of how

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they invest, they will also reveal

market trends including the stocks

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at the beginning of the second half

of the year. The number one home

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improvement chain, home Depot, is

expected to have benefited from a

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demand for home essentials and

restoration equipment during the

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aftermath of powerful hurricanes

that tore through the country during

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the quarter.

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Joining us is George Godber

from Polar Capital.

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Let's talk about inflation because

we get the latest update in the UK

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today and we have seen it rising

consistently, what are you looking

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for?

I think all eyes will be on the

weakness in sterling which will

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trigger the governor of the Bank of

England having to write to the

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Chancellor to explain why it is

there but he would say it is

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temporary and it would be moderated

as we go forward.

How much impact do

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you think a rate rise would half? It

takes time to filter through to the

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economy but it's only a quarter

percentage rise so does it have an

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impact on the inflation figure?

This

is the line in the bank is taking.

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UK output is tricky and uncertain at

the moment so the bank is pushing

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the line, this is one and done, we

don't need to do any more from here

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and they were just taking off the

emergency cut after the Brexit vote

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last year. But after inflation is

out of the bag, can you push it back

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in?

In terms of the story is out

today, you were talking about ITV

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earlier, you were particularly

interested in that one, why is that?

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The shares have been very tough in

the wake of the Brexit vote, it has

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exposed the UK economy. Most of its

earnings come from here and we have

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seen an important line in that

statement which is important for all

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traditional media, fast moving

consumer goods starting to put money

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back onto TV. They have been

shifting their advertising dollars

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from traditional sources to Facebook

and Google and so on. Earlier in the

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year there was a big furore when we

saw advertisements alongside adult

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content on YouTube. The internet is

unregulated and we are starting to

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see brand importance is muttering to

the big advertisers.

So our future

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is safe for now!

We are still waiting for the robots,

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aren't we?

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Still to come, the founder

of Easyjet has been talking to us

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about being a business trailblazer

and why he's turning his

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hand to philanthropy.

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You're with Business

Live from BBC News.

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Stay with us. Let's talk some more

about ITV.

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ITV has announced a 1% fall

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in revenue to around $2.7 billion

for the nine months

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to 30th September.

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The ale has the details. Just

explain what these figures show, and

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clearly what state the broadcaster

is in when Carolyn McCall starts.

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There are two sides to this. ITV has

been coming under a fair amount of

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pressure in its business. The

problem as ITV sees it is first of

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all its competitive market. As we

are hearing, there's a lot of

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competition for advertising revenues

at the moment and at the same time

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companies have been cutting back on

advertising spending, as ITV it,

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because of economical uncertainty.

There are signs those fast-moving

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consumer companies are starting to

come back into the market, that's a

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positive development. ITV's business

and producing content, ITV studios

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that produces things like Coronation

Street, is doing very well, its

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revenues were up 9% and that is

offsetting some of the losses in the

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traditional business so as you can

see, the traditional advertising

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from television model that ITV has

pursued is weakening at the moment.

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On demand television is where it

seems to be making its money at the

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moment.

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Caroline McCall a regular on our

business programme. She was in

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charge of Guardian Media Group.

Interesting that she is going to

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take this on board in the New Year?

She is known for taking businesses

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on that operate under tight margins

and the obvious one is easyJet. The

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budget airline market is a

particularly difficult one to

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navigate so she will be looking at

this and seeing where the weaknesses

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are and how she can sort it out,

while not reducing the improved

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income from the other areas of the

business.

Theo, thank you very much

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indeed. Lots more detail on that

story and others on our Business

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Live page.

We will have full coverage, of

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course from the inflation figure.

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You're watching Business Live.

Our top story:

0:16:450:16:47

President Trump announces

$300 billion worth of deals

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during his trip to Asia.

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He's also stressed his commitment

to free trade on fair terms.

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Keep your pictures coming in of your

pets.

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We are talking about whether houses

are too small in the UK to have a

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pet. A report suggests they are

being squeezed out during the

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housing crisis.

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Our next guest is best known

as the man behind budget airline

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Easyjet and the Easy brand that

spans planes, hotels,

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pizzas even dog walking.

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He once said, "I have been lucky

in life", having inherited

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wealth from his father,

a self-made Greek-Cypriot

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shipping magnate.

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Sir Stelios founded the Easyjet

airline when he was just 28 years

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old but since then he has

amassed considerable fortune.

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This year he joined the ranks

of super-rich philanthropists,

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signing up to the Giving Pledge

dedicating the bulk of his

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personal wealth to charity.

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He is also behind an annual award

for disabled entrepreneurs

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which takes place tonight

here in London.

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I caught up with him and started

by asking about the awards

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and why he is involved.

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At that time I wanted to create a

bit of an institution, a bit of a

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legacy if you like. So we sat is

down together with the people from

0:18:100:18:14

Leonard Cheshire and created a

annual award that goes to a disabled

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person who started a business. Can

you imagine how rare that is?

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Starting a business that does well

is difficult enough, and you

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superimpose the requirement to be a

disabled person and then you get

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some truly exceptional and unique

individuals who apply.

So clearly,

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Finnan tra pee is a very important

part of who you are now and what you

0:18:360:18:39

are about and you are part of the

Giving Pledge which is a pledge to

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give the majority of your wealth

away. Just tell us more about that

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and what you look for?

The Giving

Pledge was started by Bill and me

0:18:500:18:56

Linda Gates and warren buffet in

2010. It now accounts about 160

0:18:560:19:03

individuals or families around the

world who have made a pledge to give

0:19:030:19:08

more than half the majority, the

majority of their fortune to a good

0:19:080:19:11

cause. Essentially what I have

decided to do is start a series of

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projects, good charitable projects

which I'm involved with during my

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lifetime and then in the end, you

live half -- leave half your estate

0:19:220:19:27

to family, and half the estate to a

charitable foundation and that

0:19:270:19:30

foundation will carry on doing the

good work forever.

You tell us about

0:19:300:19:34

the passion to give back and yet

many might look at you and the fact

0:19:340:19:38

that you are a resident of Monaco, a

tax haven, how do you marry the two?

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Well, let's put things into

prospective. I was born and raised

0:19:430:19:48

in Athens in Greece. My family comes

from Cyprus. My later father was a

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shipping magnet who left Greece and

moved to Monaco in 1990, that's 27

0:19:540:19:59

years ago and that's five years

before I started easyJet or before

0:19:590:20:02

any of you would have heard of me.

So Monaco has been a family home if

0:20:020:20:06

you like for many, many years, it's

a very nice place to live. I also

0:20:060:20:11

believe that, you know, I have done

more than my fair share for the

0:20:110:20:15

British economy. I created at least

one very big business in this

0:20:150:20:18

country. I created many others, this

company has paid tax in the UK and I

0:20:180:20:24

think where someone lives is a

personal choice.

So you own Easy

0:20:240:20:30

Group which is an investment company

in the UK that has more than 1,000

0:20:300:20:35

registered trademarks, some we have

heard of course, easyJet, Easy

0:20:350:20:44

Hotel, Easy bus, what do you look

for when a company approaches you

0:20:440:20:48

looking for the Easy trademark?

I

look for someone who is ambitious

0:20:480:20:52

and clever and know enough about

business to be able to start it, but

0:20:520:20:56

probably they are young enough not

to know how much risk they are

0:20:560:21:00

taking, a bit like myself when I

started easyJet at the age of 28. I

0:21:000:21:04

think 28 is a good year because you

don't understand how much risk

0:21:040:21:07

you're taking.

Let's talk about

easyJet, the most well-known Easy

0:21:070:21:12

brand as it were. It has got a new

boss in place. Just tell us about

0:21:120:21:20

the outlook for the airline under

his new stewardship?

I would like

0:21:200:21:27

him to do well. I want to do good

out of his making the money out of

0:21:270:21:34

the company and for himself so I

wish him very well. I think the

0:21:340:21:39

company easyJet has had its ups and

downs like most companies. At the

0:21:390:21:45

risk of offending the all the people

who run big businesses I think they

0:21:450:21:49

are like politicians in the sense

that they ride the cycles and the

0:21:490:21:52

cycles go up and down with the

economy or with how much risk you

0:21:520:21:55

want to take or other factors in

your industry. So, in reality they

0:21:550:22:00

are not, they shouldn't be taking

all the credit when things are going

0:22:000:22:04

well and we shouldn't blame them

when things are going down. EasyJet

0:22:040:22:07

at the moment is if you like not as

profitable as it was three years

0:22:070:22:12

ago, but it is growing faster and

always the excuse is let's grow

0:22:120:22:17

faster and let's get through to the

other end stronger.

That was Stelios

0:22:170:22:22

who I spoke to yesterday. Really

fascinating chat about all sorts and

0:22:220:22:27

we gave you four minutes worth

there!

Did you talk about pets?

0:22:270:22:36

There is an Easy dog walking

company. Somebody approached him on

0:22:360:22:41

a flight with their business plan

and he said send me the information

0:22:410:22:45

and if it is good enough, you can

have the Easy brand. A-report talks

0:22:450:22:53

about houses getting smaller so it

means that pets are squeezed out.

0:22:530:22:58

Sally, you were tweeting the picture

of your dog.

Where is that?

That's

0:22:580:23:09

Hastings.

One viewer says I live in

a one bed flat.

Steve Smith says,

0:23:090:23:18

"My dog Sky is big and we live

happily in a cottage in Wiltshire."

0:23:180:23:23

That's a beautiful, beautiful dog.

And Sookie and Sadie are watching

0:23:230:23:30

the show and controlling the remote

control!

So they should!

Maybe this

0:23:300:23:35

is the answer, get a dog that's

small and then it doesn't take up

0:23:350:23:39

any space in the house!

There you go. Let's talk to George.

0:23:390:23:44

George you have got the job of

explaining why we have got lots of

0:23:440:23:51

beautiful pictures.

Those of us in

the UK we are pet mad, but pet

0:23:510:23:55

ownership has fallen and what the

report says this is a function of

0:23:550:23:58

the housing crisis and housing has

got smaller, but importantly, less

0:23:580:24:02

outside space. The ability for

people to keep pets.

Mental health,

0:24:020:24:07

you know, it's not just about having

pets, but having that outside space

0:24:070:24:11

as well for people's mental health?

The report touched on a few things.

0:24:110:24:14

One of the things I thought was most

curious, it says pets can help their

0:24:140:24:19

owners get dates! I don't know if

that's in addition to their profile

0:24:190:24:23

on social media or whether it is

like 101 Dalmatians, it is the pet

0:24:230:24:31

that's driving the dating process.

Pets have huge benefits of having

0:24:310:24:36

people feel better and recover from

illnesses and just improve their

0:24:360:24:39

general purpose.

Let's look at some

other stories out there in the

0:24:390:24:44

Independent, UK wages, you have

moved on from it actually Ben.

There

0:24:440:24:48

is too many adverts on the page. Let

me remove the page. UK wages...

Go

0:24:480:24:57

on, tell us more.

The UK wage crisis

still continues. There are pockets

0:24:570:25:02

where we are starting to see

improvement and parts of

0:25:020:25:04

construction and some parts of

engineering, but it is sluggish and

0:25:040:25:07

this is what we are also seeing is

not just the wages have gone up with

0:25:070:25:11

the national Living Wage, but

differentials, either bits above

0:25:110:25:13

that is where it is still very, very

tough. Now, the Brexit will harm the

0:25:130:25:18

UK economy, but will this actually,

you know, help the UK economy by

0:25:180:25:22

having less workers come in? That

could be light at the end of the

0:25:220:25:25

tunnel.

Thanks, George. Thank you

for putting up with all our pet

0:25:250:25:30

pictures. Thank you for your

company. Keep them coming in. We

0:25:300:25:33

will look at them later. See you

soon. Bye-bye.

0:25:330:25:43