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This is Business Live from BBC News,
I'm Susannah Streeter in London.
And I'm Sally Bundock in Davos
at the World Economic Forum.
Our economy is booming ,
that's the upbeat message that US
President Donald Trump is bringing
here as he talks tough on trade.
Live from London and Davos,
that's our top story
on Thursday 25th January.
The president's team have been
warning that the world's biggest
economy is ready to impose
more import tariffs,
but will it lead to
a full scale trade war?
Also in the programme -
The boss of leading US bank JP
Morgan renews his warning that
Brexit could mean job cuys
in the City of London.
Morgan renews his warning that
--Brexit could mean job cuts
And I'll be getting
the inside track on
Philanthropy for women by
Philanthropy for women by women. HRH
Crown Princess of Norway is here.
Female empowerment is a big theme
here this year, and you can join in
the debate. As the allegations have
surfaced about the hostesses who
were harassed at a men only dinner
in London, 50,000 people have signed
a petition saying more needs to be
done to protect women. Tell us what
you think should be done.
There are 3,000 of the world's top
business and political leaders at
the World Economic Forum in Davos.
But none of them will get us much
attention as the man
arriving in a few hours ,
US President Donald Trump.
Tensions have already been stoked
with the US delegation talking
of a trade war and more
tariffs on imports.
This week the President signed
new protectionist measures
against foreign goods -
slapping tariffs of up to 30%
on Chinese solar panels and up
to 50% on South Korean washing
Mr Trump has alsoe threatened
to pull out of the North American
Free Trade Agreement with neighbours
Canada and Mexico -
it's worth $1.2 trillion.
Talks to try and save it are under
way this week in Montreal.
The stakes are high.
China, Mexico and Canada
are the USA's top three
trading partners -
accounting for over 45%
of its foreign trade.
The dollar has been falling
but Mr Trump's huge tax cuts have
propelled US stock markets
to record highs.
So while some of the Davos delegates
may disagree with him -
many have found themselves a lot
richer since he took office
Sally is in Davos.
Tell me more about Mr Trump's visit.
Yes, I have to say here, there are
3000 delegates here. There are more
heads of state here than in many
years, and of course, lots of
company chief executives. It is a
bit like business news on speed. I
have been talking to so many company
bosses to get their sense of this
year's Davos, which is completely
dominated by the arrival of a
sitting US president, the first time
since 2000. But this is a very
different US president. Let's talk
in more detail with Philip Jennings,
from the unique global union, an
organisation representing 20 million
members, 900 unions. Welcome to
Business Live. President Trump
tweeted before he left Washington,
we will soon be heading to Davos to
tell the world how great America is
and is doing. Our economy is
booming, and with all I am doing, it
will only get better. What do you
make of his message?
It is a fantasy
tweet. This is the Obama recovery in
continuation. He is looking at the
reality of the American labour
market through one eye. If we look
at the promises he made to the
American people and to the American
working men and women, he has not
fulfilled any of them to the extent
that he promised. We have a
situation where the tax reforms he
has introduced, 83% of the benefits
will float to the 1%. Underneath the
radar, which doesn't capture the
attention of business news around
the world is all the other things he
is doing with respect to cutting
overtime, ending fair pay
legislation, the attack on the
immigrant workers, which we are
seeing, making it more difficult to
negotiate, to organise. The trade
union Centre have done an opinion
poll of their membership and said,
are you happy or unhappy with this
guy? 70% of the people say that they
don't like what they see. There was
an economic boom, and this theory of
trickle down will fail again. The
American worker may have a job, but
it won't pay its way.
Quite a few
company bosses either spoken to here
are talking about the fact that tax
cuts mean for them that they are
paying a lot less tax than they have
more money to spend. Quite a few are
saying that they will invest and
they will be hiring more people.
point about the tax cut is, it is
significant and deep. It is a Davos
gift for a CEO. His bottom line will
work because his tax obligations
will be less. Will the money really
go into investment? If you look at
the levels of investment in America
and the OECD as a whole, it is 50%
down on precrisis numbers.
Investment is not happening. Where
is the money going? It is being
recirculated, $4 trillion' worth has
been redistributed to shareholders.
They are surviving on pay cheque to
pay cheque, the ordinary man and
woman. The other night the ordinary
man and woman in America voted in
On the basis of
promises that have been unfulfilled.
He said he would train this one, and
he has raked the system against the
ordinary man and woman. You need to
be able to organise collectively
bargain, and he has done nothing to
lift the possibility of American men
and women to negotiate a better wage
deal on better terms and conditions
of employment. It is the contrary.
We will have to stop your there. You
have very strong opinions. Just say,
of course, we have talked to many
people here, among them the chief
executive of JP Morgan Chase, and he
was talking to my colleague Simon
Jack. Simon first of all started to
talk to him about his plans for
London in the light of Brexit, with
regard to how many jobs may go at JP
Morgan Chase in London.
We love London,
we love working there.
We've got, as you point out,
a lot of people there.
There is huge efficiencies
for us, it's huge
efficiencies for the Eurozone too.
But if they determine
that you can't have
reciprocal trade practices
reciprocal regulations it
will be bad in those jobs.
I don't know - it would be a lot.
It would be more than 4000.
So, this feels more like a bite than
a bark. Real tariffs on things like
solar panels and washing machines.
As Donald Trump started a trade
I totally agree. He
has raised a lot of issues about
trade. I am pro-trade. Some stuff
about China is - intellectual
property and lack of reciprocity.
Those of a legitimate issues. If
they are, they should be fixed.
is the boss of JP Morgan speaking to
Simon Jack there.
Let's take a look at some of
the other stories making the news.
Here in the UK more than 50,000
people have signed a petition
calling for more protection
from sexual harassment
in the workplace.
It follows allegations of widespread
harrassment at a men-only
fundraising charity dinner
that was uncovrered
by the Financial Times and attended
by many leading businessmen.
The European satellite TV provider
Sky says operating profits were up
24% in the second half of last year
after it attracted
365,000 new customers.
The company says it shows
that its strategy of investing
heavily in sports and entertainment
is paying off.
Total sales rose to £6.7 billion
which is just over $9.5bn.
Sky also said it plans to spend more
money on original programming, an
area where it's
competing with Netflix.
Qualcomm has reached an agreement
with a number of Chinese
to launch its super-speed 5G devices
in the country next year.
The consortium includes Xiaomi,
Oppo, and Vivo, who have agreed
to purchase $2bn of Qualcomm
components over a three year period.
That there has been another
development on the tariffs imposed
by the United States. LG Electronics
is saying it will have to increase
the price of its goods, things like
washing machines, as a consequence
of the US tariffs. Let's go to Sarah
Toms in our Asia business hub for
more details. What did LG
Electronics have to say?
said, they are raising prices. This
hasn't come as a surprise. The South
Korean company did not say by how
much, but experts think some models
could go up by roughly around $50.
The hike, as you said, is thanks to
President Trump's tariffs. That will
apply to large residential washing
machines. LG and the South Korean
Ministry said it was disappointed
with the policy, but LG Electronics
has said it is not expected to have
great impact to total home appliance
business revenue. And anyway, it
could find a way to sidestep these
tariffs. It expects its factory in
Tennessee to begin operations later
this year, and the operations made
there would be subject to the tax.
LG Electronics has released its
results for the last quarter. The
numbers were helped by strong sales
in TVs and appliances and including
those washing machines.
dollar is the big story on the
financial markets. Two of Donald
Trump's Cabinet members talked down
the tariffs. The Dow Jones closed up
very slightly, as you can see, after
a day of quite choppy trading.
Australia's index is up. The Hang
Seng in Hong Kong, stocks have
fallen back a little, lots of
profit-taking going on in line with
a sell-off in most Asian markets as
investors took profits. That was
after a week-long rally. The FTSE is
down slightly. The Geo is down by 1%
after a 6% rise in half-year
profits. Let's look at what is
happening on Wall Street with the
Chip-maker Intel will be reporting
earnings on Thursday.
Now, while investors
will be interested in
hearing how the company has
performed financially in the last
three months, there will be a lot
of questions about the financial
impact of the Spectre and Meltdown
that affected its chips, potentially
letting hackers steal information
believed to be very secure.
Starbucks, the world's
biggest coffee chain.
The US tax cuts should
help profits but the
company is grappling
with a bunch of issues,
including cooling sales,
rising labour costs and increased
competition from both high
end and low-end rivals.
And finally, we will hear
from several US air carriers,
including American Airlines,
Southwest Airlines and JetBlue.
Sally will be joining us
in a moment, but first
here's Sue Noffke, UK
Equities Fund Manager, Schroders.
Thank you for coming in. Let's talk
about the dollar. We have seen
weakness for a while, but overnight,
it certainly took a bit of a tumble.
To what extent is this due to the
rise of sterling? It is doing pretty
Sterling is the strongest G
ten currency in the last six months,
so the story is partly a
strengthening of sterling. I would
say the detriment is the weakness of
the US dollar. The reasons are at
the moment is the America first
policy that the Trump administration
is pursuing, and a weaker dollar
really helps motor their economy. It
makes them more competitive
overseas, and that is part and
parcel of what the objective is.
Sally, have you been following
Absolutely. It is all
the conversation here today. Sue, I
wanted to get your perspective on
the noise coming out of Davos this
year will stop what are people
saying in London, your clients,
colleagues, about this debate about
protectionism? It would seem it is
hijacking this forum this year.
think that's another strand to the
dollar weakness, the fear of
protectionism. Does it widen out? Is
it just one or two items? Is it a
tit-for-tat that excavates around
the globe? And so, that is also
weighing on the dollar at the
Sue Noffke, thank you, we will come
back later to talk through some of
the stories in the papers, thank you
for now, but still to come. We will
have more from the World Economic
Forum in Davos. We are going to talk
about philanthropy, a disrupting
investment fund created by women for
Your with Business Live on BBC News.
Let's get more on Sky now -
it reported a 5% rise in first half
year profit this morning.
The results come two days
after Britain's competition
regulator provisionally ruled
that the £11 billion
takeover by Murdoch's 21st
Century Fox was 'not
in the public interest'.
Joining us now is Julian Aquilina,
a research analyst
at Enders Analysis.
Some positive news for Sky in terms
of these results, it seems is the
focus on entertainment as Don McGahn
sports that has reaped rewards.
Sky has a good set of operating
results but as you say sport is
still at the heart of the Sky
business model across Europe, and
Premier League auction due in the
next few weeks, is the main topic of
interest in our mind.
OK, and what
impact do you think there will be
from this decision by the regulator
to block the deal of Rupert Murdoch
taking over the rest of the
broadcaster, because there are
implications for the news division,
aren't there? And in the light of
these results does its future look
No, not at all, in
fact the decision that the CMA came
to was completely expected and they
have actually made a number of
suggestions as to how they can work
out a deal to bypass those concerns.
What they did announce on Tuesday,
which investors were very pleased
about sending Sky shares up 3% that
day was the fact that the deal would
not be against the public interest
in terms of broadcasting standards,
which is a huge win for Fox.
Aquilina, thank you for talking to
us, from Enders Analysis. Here are
some other news stories we're
covering at the BBC. Canada's
cannabis cultivators are in a
marijuana megamerger, two growers
have agreed to merge and create a $6
billion company. Aurora cannabis,
after a far from mellow takeover
battle between the firms, Canada
plans to legalise recreational
marijuana before July. There is also
the story, a huge rise in sales from
the online fashion retailer Asos,
doing well, even though retailers of
bricks and mortar stores are
struggling at the moment. You're
watching Business Live.
You're watching Business Live, our
top story. US President Donald Trump
says the American economy is booming
as he heads to Davos and suspected
to talk tough on trade as his team
talks of more import tariffs to
come. More on that in a moment.
Yes, here in Davos that seems to be
dominating the discussions right
now. But something that people
always say about this World Economic
Forum in Switzerland is, what
difference does it really make? What
changes in the world as a
consequence of this powwow between
multi billionaires, company bosses,
and heads of state? Well, our next
guest will tell you because these
two ladies met at the World Economic
Forum quite a few years ago. They
connected for the first time. They
talked about their vision to try and
help women who were in difficult
positions around the world, and how
they could bring in the finance to
make that happen. Consequently, they
have now managed to fund some really
exciting projects around the world
to empower women, to protect women,
to enable women, and it really has
had quite an impact on women in some
developing countries. I joined both
of these ladies, quite unusual
actually, because one of them is
Kate Roberts, the co-founder of what
is called Maverick Collective but
the other one is royalty, HRIS Crown
Princess of Norway. This is what
they had to tell me in Davos.
Kate and I met and we both
have a background in global health,
and we saw when women and children
focused on in the health scene,
communities really fall back.
I think both of us had that
experience and that's why we wanted
to start a programme that
specifically targeted young women
Please explain how this organisation
differs to others, ie,
it is set up by women for women.
Well, it's very strategic,
so we are not investing
in everything, we are very focused
on these big bets, so,
you know, the whole world needs
better sanitation so we are building
toilets around the world,
taking a private-sector approach,
and as the Crown Princess Mary
saying we work
with our members around their time,
talent and treasure and their
brainpower is just as important
as their financial resources.
That's been missing,
I think, in the women
philanthropy space where we are just
not searching for money.
We really want to innovate
with your entire network.
I think one of the first
conversations we had with one of our
funders, she said, oh no,
I asked to give money
to all these projects
they never want anything
but my cheque-book.
She really wanted to get involved.
Now, her project in India
on cervical cancer is one of
the most innovative projects we have
seen for a long time in this space.
It's now serving 24 million women
in Uttar Pradesh in India
and has now been adopted
by the Indian government.
So, it's incredible to see
what these projects can
develop into if you just have this
incredible women that
are willing to make an effort.
How does your role,
as a Crown Princess affect
Does it help or does it hinder?
Well, I think as with all things
in life it's both a help
and a hindrance with the things
we can get involved in.
but I think I've been
incredibly lucky to be so much
a part of this project.
Kate and I founded it together.
I get inspired every day
by the stories of these women around
the world trying to make better
communities and trying to really
innovate the way we do both
philanthropy but also the way
the health community works.
I think to take that private sector
approach to many of these
issues is incredibly,
it's just very inspiring.
In terms of other people involved,
you've got Melinda Gates on board,
she's very well-known with her
husband as being involved in
In what way does she help?
She actually gave us the seed
capital to start Maverick
Collective and joined
as our co-chair.
She was our inspiration really
on setting this up because
she puts her whole self
into her philanthropy.
She doesn't just give
money, she advocates.
She was part of the Family Planning
2020 to reach the goals.
She has leveraged herself
billions of dollars.
So she was our archetype.
Of course, not everyone
can be Melinda Gates.
But we want people
to follow her example.
Crown Princess of Norway and Kate
Roberts in that report. Sue is back
to talk about some of the stories
the media has been interested in. It
has been the Presidents Club scandal
that made all of the papers, covered
on the BBC as well, the club is to
close following these allegations of
harassment at a top London hotel,
and there are now calls for extra
protection for women in the
workplace. What do you make of that?
I think it's interesting because
there is legislation in place but
the calls are to give it more teeth.
The issues are that it has taken
through employment tribunals, which
are quite costly for the individuals
to bring a case and that might be
prohibitive and hindering people
from progressing their harassment,
or sexual misconduct claims through
We have had a number of
tweets on this, we asked for
people's views. Andy North says
employers should have a response
ability to protect their employees
from harassment, this case they
created their harassment, he claims.
Other people have different views,
they say it is no different to help
women would react if it were the
other way around, perhaps. Vic says
that report has stopped all the
other women who were happy to work
earning their money, but they are
grateful to her. It has provoked
lots of different views, hasn't it?
Borough calls for these
nondisclosure arrangements put in
contracts -- now there are calls.
For them to be lifted.
here is there was a third party that
implied the hostesses to work, and
the individuals were required to
sign a confidentiality nondisclosure
agreement. The question is, are
those legally binding when what's
been going on is in fact illegal?
Big question. OK. Let's go back to
Sally in Davos to find out what else
is happening. We have had an update
from the US delegation, haven't we?
Yes, we have lots of comments coming
from Steven Mnuchin, the new US
Treasury Secretary who was grilled
about the UK in particular and he
said he wants to see a successful
transition on Brexit that is good
for the UK and good for the markets.
UK Prime Minister Theresa May will
be having bilateral talks with
Donald Trump today