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This is Business Live from BBC News
with Alice Baxter and David Eades.
The US Congress has until midnight
to agree a budget deal -
or see government services
Live from London, that's our top
story on Friday 19th January.
All eyes will be on
the US Senate today.
Hundreds of thousands of government
employees could be sent home
if the two major parties
fail to overcome their differences.
Also in the programme...
The controversial founder of Uber -
Travis Kalanick - becomes
a billionaire after the ride-hailing
company completes a massive
round of funding.
And we'll keep you up to date
on all the latest market
action where over in Asia,
stocks shook off losses
on Wall Street and edged up
to record highs on Friday.
Whilst Europe looks to be heading
for a muted finish to the week.
And it's been a busy few days
for the likes of Apple,
Emirates and Blackrock.
We'll be taking stock
with our business guru Theo Leggett.
Today we want to know, why
are millennials not playing golf?
The popularity of the sport is
falling all around the world.
Is it to expensive or does
it just take too long?
Let us know.
Just use the hashtag BBCBizLive.
Hello and welcome to Business Live.
The government running the world's
biggest economy is staring
a shutdown in the eyes.
That's what will happen
if the United States Congress
doesn't agree a budget deal
by the end of Friday.
Late on Thursday, the House
of Representatives passed a short
term bill to fund the government
until February 16th but getting it
through the Senate is proving
much more difficult.
One major sticking point is the fate
of 800,000 so-called Dreamers -
people who came to the US illegally
as children and face
the prospect of deportation.
Democrats are using the budget talks
as leverage to try and stop that.
Then there's the Children's
Healthcare programme -
which provides insurance
for millions of low income kids.
It cost $16.9 billion last
year and President Trump
wants it reformed.
So what if Congress can't agree?
Last time the government was forced
into a partial shutdown was in 2013.
850,000 staff were sent home,
museums and parks were closed,
and services from visa processing
to mortgage approvals
The potential economic
damage is also very real.
The 2013 shutdown lasted just 16
days, but knocked a third
of a percent off US growth
for that year.
That's why the US dollar has been
falling as the stalemate continues.
Jacob Parakilas is Assistant Head
of the US and the Americas Programme
at the international affairs think
tank Chatham House.
Thank you for coming in. These are
pretty high stakes. We are getting
down to the 12th hour. A simple
question first, what's your gut?
think it might turn into a shutdown.
The Democrats are clearly trying to
use it as a leveraged point. They
have minority in both houses. Areas
where they have influence are
relatively few, but this is one.
They can defend the dreamers
programme, which everybody agrees
needs to be extended. And the
children's health insurance
programme, massively politically
popular. They are standing on
relatively solid ground on those two
points, but it's not clear how the
politics will play out with midterms
coming up in November. Everybody
playing a bit of brinksmanship.
interesting because President Trump
went so far is to say it could
happen, and I wouldn't say he was
sanguine about it, but he was ready
to let it happen.
He was recorded as
saying, we need a good shut down, at
one point. He doesn't see it with
the same kind of fear as other
presidents. I don't think he
necessarily has the same
appreciation for the breadth of what
the federal government does and the
impact of how the federal government
works and how it places into
different sectors of the economy.
For another thing, I think he is
willing to make threats and put
things on the negotiating table that
other presidents haven't been. He's
expanding the scope of possibility.
Alice was just explaining that one
third of 1% was lost from growth
last time around and that was just
16 days of. That's the last thing
the president would want in terms of
trumpeting the value of his
presidency and boosting the economy.
One thing he has been very regular
about is saying the stock market is
up, there are jobs, and that's
because of my presidency. If he
allows the shutdown, if he doesn't
intervene or make it possible to
reach agreement, then those numbers
will fall off and he will have to
find a new thing 2.2.
point out it is only a short-term
-- fight a new thing to point
Let's take a look at some
of the other stories
making the news...
Google says it's agreed
a patent licencing deal
with the Chinese tech giant Tencent.
It's being seen as a way
of expanding its presence
in the country where many
of its services are blocked
by the government.
The firms haven't said
which products are covered
or released any details
of the financial terms.
Europe's biggest bank HSBC has
agreed to pay $101 million to settle
a US criminal investigation
into rigged currency transactions.
The bank admitted its traders twice
misused confidential information
provided to them by clients
for its own profit.
The tech giant IBM has
reported its first rise in quarterly
revenue in nearly six years.
The company brouught
in a higher than expected
$22.5 billion as it saw
a turnaround in its fortunes
after investing in markets
like cloud computing, AI,
blockchain and security.
However the October to December
period brought a $1.1 billion loss
because of a one-off tax charge
related to President
Trump's tax reforms.
Uber co-founder Travis Kalanick has
officially become a billionaire
after the ride-hailing app sold
a stake to a group of investors
led by Japanese firm Softbank.
Leisha Santorelli is in
Singapore with more on this
More developments at Uber, as well
as the expanding wealth of its
That's correct. Travis is
being paid handsomely to cede
control of the company he built up.
The deal is complete, it's been
going back and forth for about seven
months. Japan's Softbank is now the
majority shareholder of Buber in a
$9.3 billion deal. Dubai is one of
the most valuable is start-ups in
the world. -- Uber is one. At one
point it was said they would invest
in the Uber rival, Lift, if the deal
fell through. After a series of
scandals that hurt Uber's
reputation, they were pushing for
more reforms. All of this has been
agreed and Uber will create some
additional board seats and also do
something quite interesting,
eliminating super voting stock
rights. These are held by early
employees and backers of the company
and it also means early backers like
Travis Kalanick will no longer have
a significant say in how the company
is run. We also seen reports that
the new owners, Softbank, wanted to
focus on the US and European market
and avoid costly battles for the
market share in India and Southeast
Staying in the region where Asian
markets mostly rose on Friday,
edging up to record highs,
after another positive week
across trading floors but,
as we saw in Hong Kong,
investors' appetite was being
tested by profit-taking
and worries about a possible
US government shutdown.
Wall Street came off record highs
to end lower as Washington
lawmakers bicker over that
federal funding deal.
of faster-than-expected fourth
quarter growth saw
Shanghai climb 0.4%.
That unease over Washington's
uncertainty is adding
to pressure on the dollar,
which is down against its major
peers as well as most
Languishing at a near
three year low.
Meanwhile here in Europe,
at the end of what has been
a fairly directionless week,
stocks have opened with marginal
gains but there's a general feeling
that markets lacking a clear
direction and could move sideways
through the session.
Those marginal gains are only in
some quarters, and not here in
And Samira Hussain has
the details about what's ahead
on Wall Street Today.
Fresh consumer sentiment numbers
will be released on Friday and it's
expected to have brightened.
The University of Michigan surveys
of consumers is likely
to show its preliminary January
consumer sentiment index rose to 97,
from December's reading of 95.9.
In earnings news, oilfield services
will release results.
The company is expected to post
a bigger quarterly profit
as North American shale keep
outpacing international growth.
Despite some early warnings
about growth flat-lining,
shale production is poised to push
US oil output at more
than 10 million barrels per day,
toppling a record set back in 1970.
Joining us is Simon Derrick
from the Bank of New York Mellon.
Good to see you, as ever. It's the
ailing dollar that catches your eye.
It is. On the face of it, it looks
like it looks like it's about the
shutdown. You'd expect moderation in
the dollar and interest rates. When
you start to dig into it, it looks
like there is more going on.
Interest rates are still rising in
the US. Markets are doing extremely
well and the dollar has been falling
for 12 months. You start to look for
other answers. What you see,
particularly over the last month, is
a sharp acceleration down since
mid-December. It looks like it might
be connected to the tax deal, it
might be connected to people being
concerned about growing fiscal
deficit and at the same time you
still have a huge trade deficit in
the US. You have to go back to the
mid-19 80s, the last time we saw
these worries in the dollar.
are high, growth in the US, and it's
a conundrum. The dollar is still
falling in value. And it's a reserve
currency so who is suffering around
The Australians and
Canadians have complained, no
surprise. But Europeans have also
complained, the head of the European
Central Bank in France, it's gone
through a level of 120, that's the
area where Airbus becomes
uncompetitive. I wouldn't be
surprised to see more out of them.
Whether they can do anything about
it, a different matter entirely.
quick yes or no, will it fall
We'll be taking a look back
on a busy week in business.
The world's biggest money manager
says that companies need to focus
on more than just profit-
we'll bring you all the details.
You're with Business
Live from BBC News.
Construction firm Carillion
collapsed on Monday,
leaving a question mark hanging over
thousands of UK jobs.
Last night, business
secretary Greg Clark met
with representatives from businesses
and trade unions to figure
out what happens next.
Our business correspondent
Jonty Bloom joins us now.
good to see you.
What does happen
We have some details from
the meeting. We know representatives
from the construction industry are
desperately trying to take over
apprenticeships Carillion was
running, training young people up in
the industry. There is a skill
shortage in the UK in that sector.
We also know the tax collector,
revenues and customs, it will
basically allow customers to defer
some of their tax if they have been
hit by Carillion. We know the banks
are putting significant amounts of
money aside to be available to
companies, subcontractors, for
instance, who have a shortage of
cash at the moment.
can the government task force be
seen to be, because it's a private
company but with lots of public
Yes, and those
contracts tend to be continuing.
Government and local government have
provided the money to keep employing
people. Some companies like
nationwide, the large bank and
building society in the UK, our
drinking staff into the company to
continue cleaning their offices and
so on. It's not all down to
government. -- are bringing staff.
This was the second largest
construction company in the UK and
its collapse brings out the huge
capacity in building and service
providing. Probably what will happen
is the government will have to
renegotiate all the contracts
Carillion had, find other people to
do it and probably pay them more.
Let's not forget, Carillion was
running the contracts and went bust.
Thank you. And Carillion has been
the domestic business story of the
week. Much more on the BBC website,
including some other stories that
have caught our eye, including this
about a huge ATM shake-up that many
are fearing could leave communities
across the UK without a cashpoint.
That's thanks to a report from
consumer group Which? They want to
reduce the amount they charge banks
and building societies to use their
machines with Link.
You're watching Business Live.
Our top story.
Late on Thursday, the US
House of Representatives
passed a short term bill to fund
the government until February 16th
but getting it through the Senate
is proving much more difficult.
Hundreds of thousands
of government employees could be
sent home if the two major parties
fail to overcome their differences.
And it's been another week of big
stories in the business world.
The boss of the world's largest
investment fund, Blackrock,
called for all companies to do more
than just make profits.
Meanwhile Apple says it's
going to be paying the US
government the largest tax
payment it's ever received.
Our business correspondent
Theo Leggett is here.
Where shall we start, maybe Black
Rock? It struck me, on the surface,
haven't they got the message yet
that you have to do more than just
Blackrock writes to the
large companies every year to
encourage them to invest, but this
time it's different, he is saying in
so many words that governments are
not doing what they should in terms
of preparing for the future. So
companies have to do it and
therefore CEOs don't just have to
look at their financial performance
but at the social impact of what we
are doing. Not only the benefits to
shareholders, for employees, but for
society at large.
How much clout as
the CEO of the major company
actually have in terms of reforming
enormous influence over these
companies. When it comes to how
companies operate the criticism has
been and major shareholders like
Blackrock don't use the influence
that they have over boards. So for
example when it comes to chief
executives's remuneration or climate
change policies and so on asset
managers tend to vote in favour of
the board, and not to promote
restructuring, or promote better
corporate policies. So now he says
they should consider doing this and
chief executives and directors
should pay more attention to these
issues throughout Europe, not just
at the annual general meeting.
should have a quick word about
Apple. A lot of money going into
government coffers, Mr Trump will be
It's a huge amount of
money, these tax changes have been a
flagship of the Trump presidency.
Although it is a lot of money it is
much less that Apple would have paid
if it hadn't parked all this money
offshore facility. Because what they
can do now is pay a flat tax rate of
15.5% and then they can bring the
money back at will. If they'd
brought the money back before these
reforms they would have paid a much
higher level of tax. So in fact
Apple has done rather well out of
this. Other companies are likely to
be significant amounts of tax,
companies like Google and Microsoft.
When it comes to aeroplanes what you
don't know is not worth knowing.
What is your take on Emirates
butting in this order for the Airbus
380, it wants 36 of them. A lifeline
for the planes?
Definitely and in
the interests of the company, they
set its business model, which
involves transporting huge numbers
of people over long distances. From
the point of view of Airbus they
need another order to keep
production going because they don't
have a great backlog. This order
allows them to keep producing the
Airbus 380 for another ten years. In
that time the aviation market is
expected to grow enormously and by
that time airports will get more
congested especially in Asia and the
business case for the Airbus 380
which isn't really that at the
moment, will begin to look more
That's interesting because
I thought perhaps it was a tapering
off of its best years.
argument that the A380 was ahead of
Thank you. Now we are
going to talk about golf.
When it comes to golf
Donald Trump has thrust the game
into the headlines like never before
since he became US President.
But the number of Americans playing
golf has been falling
steadily in recent years.
And it's a trend also being seen
in the rest of the world.
So what's going on?
Mariko Oi is at the Singapore Open
on the island of Sentosa.
Some of the world's top golfers are
here at Sentosa Golf Club for the
Singapore Open which is sponsored by
it as NBC, a bank that has announced
it is going to extend its
sponsorship for another three years.
Great news for the organisers, the S
M BC. The tournament used to be
sponsored by Barclays but when they
pulled out in 2012 the tournament
couldn't find a sponsor
straightaways at the event was put
on hold for several years. But even
though the extension of sponsorship
is good news, the prize money is
down to $1 million. Which is of
course a lot of money to you and me
but not for the golf industry. It
used to be $6 million with Barclays
so companies have been under a lot
of pressure, whether it is a wise
idea to keep sponsoring sporting
events. This comes at a time when a
number of golfers has been falling
around the world. The decline in
Asia is not as sharp as in Asia or
the UK but it seems as if millennial
is simply not picking up the sport,
partly apparently because they can't
be on a smartphone on the golf
course. I am not sure how accurate
that is but at least golf is now an
Olympic sport, since 2016, so the
world of golf is something that
would give it a boost. Thank you,
Mariko. Mariko's husband is a golf
professional but she's never picked
up a club in her life! We wondered
why millennial is seemed to have
switched off the game. An avalanche
of responses on Twitter. This one
from aerial rows. We are shunning it
because we're not 80 years old.
That's a good start! Someone has
just said that is factually correct
and very unfair. Someone else says,
expensive, not fun, elitist. Pretty
negative stuff. Many in a similar
vein. Neil says most clubs are still
in the dark ages so any millennial
's will walk in, walk out and never
return. We should remember that our
producer is a millennial and he
likes golf. A few more of that age,
the clubs themselves cost more than
just getting everybody's golf on PS
four. Not going out costs much less
money! That's one approach! Very
Simon is with us again. Your
thoughts on golf?
Clearly I like the
stupid trousers and the site is! I
gave it a go. I wasn't great but I
found it boring. Sorry to all the
golfers. A good walk spoiled.
Apology accepted. I am boring enough
to love golf. Let's have a quick
look at some of the stories that
took our eye on the business pages.
Starting with the Telegraph. This
hugely important summit taking place
between the French president and the
UK Prime Minister. But the person
stealing the headlines is Boris
Johnson. He's called for bridge
across the Channel.
Hardly a shock
that our Noble Foreign Secretary
would steal the limelight from the
Prime Minister at a moment like
this. Clearly not the first time.
You get the sense that this is more
about domestic politics than
anything else, just a reminder that
Boris is constantly there. Roy Wood
business perspective the markets
will take this as a reminder of the
fragile nature of UK politics. To
any of us believe bridge will be
built? Probably not.
that the French president said that
was a good idea, and said let's make
it happen or words to that effect.
Another throwaway line?
parts to. From the perspective of
infrastructure spending that could
be a boost to the economy, and
perhaps just a bit of sterling with
regards to the Brexit negotiations,
a little aside to Boris rather than
Theresa May. I suspect he was just
having fun and stirring the pot.
Probably the best line that came out
of it all. Enjoyed that one. And the
focus is on China's economy, which
has gone up 6.9% from last year,
against expectations. Your
In fairness, against
mine as well, I would have placed it
lower than that. Questions can
always be asked about Chinese
numbers, the economy is doing better
over the course of the last 12
months. But in spite of the threat
that the government has been doing
its best to put constraints on it.
What is particularly good is about
this is that it gives the Chinese
authorities greater flexibility in
their drive towards liberalisation.
Comfortable accounts, interest
rates, foreign exchange, or things
they have been aiming to deal with
through the second half of the
decade. This gives them the
opportunity to push ahead with that
because relatively speaking the
economy is in a reasonably robust
Is it tenuous to draw a link
between this accelerated growth in
China and the fall in value of the
dollar, the fact that China has
reduced its stockpile of dollars.
think it's fair to say that since
2014 China has been moving towards
liberalisation. I think what is true
again is in the second half of this
year China has been pulling back, it
is liberalisation. That is a good
thing. The US president would
support that view.
Simon, we will
leave it there, have a good weekend,
get out your diamond sweater and
those trousers, have another go on
the golf course.
That's it from Business Live today.
Thank you for watching. Bye bye for