02/03/2018 BBC Business Live

This is Business Live from BBC News

with Samantha Simmonds

and Susannah Streeter.

Trump's trade tariffs.

The US President says he'll

impose duties on steel

and aluminium imports.

Live from London, that's our top

story on Friday 2nd March.

The US President says the dumping

of foreign steel is costing jobs

but China warns his protectionist

policies will harm global trade.

We'll have the latest

live from China.

Also in the programme....

Embracing the "deepest

possible" free trade deal.

Britian's Prime Minister is set

to argue it is "achievable"

when the UK leaves the EU.

And in a week where Toys "R" Us

and Maplin have become the latest

The markets in Europe are all down

off the back of the trade comments

from President Trump.

And in a week where Toys "R" Us

and Maplin have become the latest

big UK retailers to run

into trouble, we'll get

the inside track with our

business editor Simon Jack.

As severe snow fall affects Europe

and the US East coast,

we want to know how

you are struggling into work.

We've made it in, but

will we make it home?

I don't think I will!

Let us know how you're getting on.

Just use the hashtag #BBCBizLive.

Hello and welcome to Business Live.

A warm welcome on this bitterly cold

day for many of us.

US President Donald Trump has

seriously upped the ante

in his trade disputes with the rest

of the world.

He says the world's biggest economy

will impose heavy tariffs on steel

and aluminium imports

to protect US producers.

They have welcomed the move.

But China is amongst those warning

it will harm global trade.

And stock markets have fallen

since the announcement.

Here's the details.

Mr Trump says from next week

he'll slap duties of 25%

on foreign steel imports,

and 10% on foreign aluminium.

Critics say if he goes ahead it

will force up costs for other US

firms like carmakers -

and provoke damaging retaliation.

They argue it could destroy more

jobs than it creates.

But as Joe Miller reports

from Pennsylvania, some workers see

this as the President trying

to fulfil his election promise

to save the US steel industry.

For almost two centuries, this

rolling mill has been a mainstay of

American industry,

producing up to half

a million tonnes of steel

a

year and providing hundreds of well

paying, stable jobs.

I was able to build my

house and provide a good

lifestyle for my son and I,

but right now, I am in jeopardy of

having to start over

at 47 years old.

Last autumn, Kimberley and 250

of her fellow employees, were told

that with the price of steel

dropping, their employer would idle

the mill and axe 100 jobs.

But just a year before,

many of them voted

for a man who campaigned

on a promise to end their industry's

relentless cycle of boom and bust.

After months of dithering, the Trump

Administration has announced its

intention to slap tariffs

of 25% on steel imports.

We will be imposing tariffs

on steel imports and tariffs

on alumina imports and you are going

to see a lot of good things happen.

-- on a loom in imports.

For workers at the local union Hall,

the tariffs have been a long time

coming.

For years, they felt at the mercy

of China, which produces as

much steel in a month

as the US does in a year.

We know we have to trade,

but it has to be fair trade.

We're not even in the game.

Not just a freefall

of steel coming into this

country.

But the White House is running

into the same problem that

has plagued previous

administrations.

Imposing strict tariffs

on steel imports could cause

China and other important trade

partners to retaliate in kind and

that could cost jobs in other parts

of the country instead.

Other industries said

they fear a backlash

to the tariffs and markets

in New York fell sharply after the

announcement.

But for volunteer firefighter,

Chuck, saving steel is

worth the cost.

The steel industry in

particular, that is the

cornerstone of America.

If we can't make our own

steel, we are leaving

ourselves vulnerable

to everyone else in the world.

The decision from Washington

has come at last, but

steel workers in Pennsylvania won't

be celebrating just yet, they will

be watching for how Beijing

and Brussels responds.

Joe Miller, BBC News.

Our correspondent Robin

Brant is in Shanghai.

Hello. So a trade ministry

spokesperson in China says this

could have a serious impact on the

International Trade order. Just how

could this escalator?

You are right. It is the Chinese

government, perhaps surprisingly for

some, which is an exponent today of

free global trade. It is the US

which is taking on very much the

role of the protectionist. We are

also hearing from China's Foreign

Ministry that it wants the US to

exercise restraint in using trade

protection tools. The language from

government spokespeople is rarely

excitable Ahmad, it pretty much fits

in with that. China knew this was

coming. It is no surprise. In terms

of retaliation there has been talk

of targeting agricultural imports

from the US into China, maybe Boeing

as well. No action on that but that

is where the rumours are. A bit of

context, China does not feature in

the top ten steel importers into the

US. It produces a lot of steel, in a

month what the US producers in a

year, with the US imports about 2%

of its steel from China. The

reaction in terms of what this might

have on the domestic Chinese steel

market will be pretty muted. The

markets today closing, we are seeing

calls for bar showing iron and

steel, the aluminium core of China

is down around 2%. That is fairly

muted. I think the big concern for

China, domestically, maybe is the

portent of what is to come from

President Trump on other bigger

issues in terms of the trade

relationship between the countries.

Intellectual property is a huge deal

for the US and others on the issue

of reciprocity, broader market

access. It is the one thing you

constantly hear big complaints from

American businesses and others

trying to get into the Chinese

market, not reciprocal, they do not

think their treatment is fair.

It does not seem like these tyrants

have been imposed and there is an

impact already on the car industry,

carp manufactures among those whose

share prices have fallen? -- it does

not seem like these tariffs have

been imposed yet.

Car-maker, on and

off the biggest car producer in the

world, not Chinese but with a

biggest... Big impact here. We're

hearing it will distort the global

steel market and will not protect

jobs.

Many thanks, Robin Brant in

Shanghai.

Let's take a look at some of

the other stories making the news.

The London Stock Exchange has

shrugged off a year of slower

trading and a management shake-up

to report a growth in profits.

Adjusted operating profit rose

18% to £812 million -

that's more than $1.1 billion.

It's also increased its

payout to shareholders.

The company says its making good

progress on recruiting a new chief

executive to replace Xavier Rolet

who left after a boardroom battle.

Robin Russell is talking about this.

-- Robin Brant was just talking

about Toyota.

Japanese carmaking giant Toyota says

it plans to form a $2.8 billion

company with a group

of others to develop

automated-driving technology.

The tie-up with suppliers including

Denso and Aisin Seiki will create

about 1,000 new jobs.

Toyota will own 90%

of the new company.

Microsoft founder

Bill Gates has attacked

cryptocurrencies -

saying they are killing people

in a "fairly direct way".

In a question and answer session

on the news website Reddit he said

digital currencies like Bitcoin

are used to buy drugs

and that their anonymity meant

they were linked to terrorist

funding and money laundering.

Critics have said he was

ill-informed about the technology.

Japanese car-maker Subaru

is replacing its president

and overhauling its board

as the effects of last

year's inspections scandal

continue to be felt.

In October the firm revealed it

hadn't followed proper procedures

for inspecting domestic models,

leading to the recall

of almost 400,000 cars.

Sarah Toms is in our

Asia Business Hub.

Welcome to you. Bring as up to date

on the reshuffle at Subaru?

There

are two key things which have come

out of this. Subaru will bijou

reshuffling its board. I think three

out of six board members will be

replaced. Also being replaced is the

man who was the person in charge of

day-to-day operations, the

president. The reshuffle comes, it

is a move to rebuild trust but it is

interesting to see how well that

will go when the old president has

not left the company. He will retain

his role as chief executive and also

take over as chairman. What does

this mean? As chairman he will be

continuing to lead efforts to

prevent any more of these

inspections scandals and will be

continuing Subaru's campaign to

regain the public trust that the

company feels it has lost.

Thanks

very much, Sarah.

Now the markets. Those concerns over

the impact of President Trump's move

have had a massive impact on steel

tariffs. They have hit US shares and

the dollar, car-makers like Ford and

GM are hardest hit. The Dow close

down 1.68%, and Japanese stocks fell

to a two and a half week low on

Friday, steelmakers and comedy

factor is taking a battering. Nippon

steel and one South Korean company

were down as much as 4% during

trading, down to President Trump's

announcement.

The Europe markets are expected to

react and are all down across the

board. Concerns that that decision

will spill over to Europe, looking

at stocks in companies with

facilities in the US.

The FTSE is likely to be affected by

a speech by British Prime Minister

Theresa May who is likely to set out

her vision for a Brexit deal in a

steep -- in a speech which could

affect the pounds and the FTSE.

The to you my years in New York. --

Yogita Limaye is in New York.

Investors will be looking at steel.

The consumer Internet Dunn sentiment

index for February is due to be

raised by the University of

Michigan. It is due to be higher

than the previous month, showing

Americans are feeling better about

financial and prospects, among other

things.

Retailer JC Penney will release its

results. The company closed several

stores last year and investors will

be looking to see whether that has

turned things around for the

Department store chain.

Joining us is Alpesh Patel, Chief

Executive of Praefinium Partners.

Thank you for braving the snow.

Let's talk about what has been

happening with regard to new

imports, the new steel tariff

imports, turrets that President

Trump wants to bring in. Already

China is saying urge restraint,

there seems to be panic in the

market?

What is interesting, you

need to look at about four or five

stocks and it tells the whole story.

One company is a fourfold in the

last two years since Trump the

candidate has mentioned this. So to

some extent the steel manufacturers,

this has been priced in and I would

not be surprised if their share

prices start dropping. Cisco and

Intel, you might think what have

they got to do with it, that is

where the retaliation will hate,

where the Chinese will hate the

Americans, in the silicon chip

manufacturing, the IT industry of

which they are great exporters.

America has to decide whether it

wants to be steel manufacturing or

the IT industry, it will be either/

or. The final stop is Caterpillar,

who make the construction trucks.

Their share price was hit. Higher

prices does not mean more

manufacturing jobs, it means less

construction, people do not buy.

They do not buy more cars at a

higher price, they stop buying. That

is another stock which tells the

truth about what will happen when

and if these tariffs are announced

next week.

Those will be the stocks to watch.

Italy have elections this weekend,

there economy has suffered a

triple-dip recession over the past

decade.

You could say that about any

year that you want. They get more

recessions than the Democrat any

other European economy.

It will be a

key thing for the elections, a third

of young people are unemployed?

It

will not impact EU GDP or Brexit but

it matters for Italy alone. 40% are

undecided, there is a populist

movement which is meant to have

caused Brexit at the Trump election,

the five-star movement. They have

announced their ministers. They will

probably not make a coalition. They

did well in local elections,

probably got about 30% of the votes

share.

It is a problem for Italy but not,

thankfully, the European economy.

Berlusconi is interesting, he does

not like to be likened to trumpet

the hairstyle and skin tone, he

looks just like him and he hates

that. -- does not like to be likened

to Trump.

Still to come...

With Theresa May said to tell EU

leaders she wants the deepest and

broadest possible trade union after

Brexit, we find out what that means

for business.

You're with Business

Live from BBC News.

Snow is the word on everyone's lips

as the UK woke up to its forth day

of severe disruption caused

by the freezing weather conditions.

The army was called in overnight

to rescue people from their cars,

while many schools and workplaces

will be closed today, at

a significant cost to the economy.

Fiona Lamdin is in Taunton

to give us an update.

It has been very snowy, looks very

tough getting through for the lorry

behind you. Lots of people still

have two struggling to work,

emergency services, nurses, doctors

across the board?

We are a stone's

throw away from the M5. It is

normally a main feeder road to the

M5, but it is hard to get onto. This

would normally be full of hundreds

of cars, people trying to get to

work. It is completely empty.

Traffic lights are read for no

traffic. If I can show you some of

the stranded cars. This lorry you so

moving, got stranded last night. So

many people were coming down the M5

and they said it was like an ice

rink. They got to the point where

they thought it was dangers and they

would come off at Taunton. So many

people ended up abandoning their

cars and staying here. People are

trying to get moving, the team

spirit is amazing, people have been

digging each other out of the snow.

We have just met a farmer, who has a

local business two miles away. He

rang into the local hospital,

Musgrove Park this morning and

offered his services. This morning

he been ferrying staff and all sorts

of people into Musgrove Park this

morning, so the hospital can operate

as normal. They are asking people to

only come in if it is an emergency.

So the main thing about the road is,

they are asking people to avoid all

travel if you can. At the moment we

have been told the M5 is moving and

we have just literally seen a

snowplough and a gritter down this

road. People are not fancying

driving on this so the advice is to

stay in and stay warm.

Fiona, thank

you. A bit of good news, there will

be no gas deficit warning. It seems

supplies have been freed up.

You're watching Business Live.

Our top story:

US President Donald Trump says he

plans to impose tariffs on steel and

aluminium imports. Trading partners

including China, Canada have

criticised it.

A quick look at how

the markets are faring.

Markets are down since that

announcement by President Trump.

The UK's exit plan from the European

Union has dominated headlines after

trees may outline their plans for

trade after the exit.

Our business editor Simon Jack

is with us in the studio.

Let's talk about this speech by

Theresa May, expected later. She is

got to set out the five tests she

says need to be met. What are those

likely to be?

We should go back and

say it has been a big week for

Brexit because we got the first

substantial document of the process

when Michel Barnier, the chief

negotiator for the EU, set up the

legal text as to what was agreed in

December, the Phase one thing, it

dealt with the divorce bill,

Citizen's rights on what will happen

on the border between Northern

Ireland and Ireland. In it, it says

as a last resort, to have a hard

border you would have full alignment

between Northern Ireland and the

Republic of Ireland. What this

document says is that during that

period, the European Court of

Justice would be in charge. The big

fallout of that is you cannot have a

European Court of Justice in charge

of part of the United Kingdom, no

British Prime Minister would agree

to it. So they are saying, give us a

better idea. In Theresa May's

speech, she will give more detail

about what she wants and this is

what the Europeans have been asking

for for a long time. I expect her to

say, we want to be a good friend and

neighbour, but a bit more realism

saying we cannot have our cake and

eat it and say we would like to stay

in some big agencies like for

example, aviation is,

pharmaceuticals. The Europeans will

be saying, tell us what you want.

Today will be a key speech, one of

five from British ministers saying

this is what we want ahead.

20

months since the referendum and

businesses have had all that time

with uncertainty and are they hoping

for clarity today so they can move

forward?

A row pharmaceutical and

aviation, sensitive industries to

European legislation, Theresa May

may tip her hat and say, we would

like to stay a member to some

agencies. There is a huge debate

about whether you want to stay part

of the customs union or how much.

This has been perked up by the main

opposition party in the UK, saying

we would like to stay part of a

customs union. The Conservatives are

saying, you cannot do that because

if you are back closely entwined

with Europe, you cannot go and do

your own trade deals with the rest

of the world. Some would say, look

at the biggest single expert market,

it is the US, there is no trade

deal. Look at Germany's deal with

China, there is no trade deal. So

people saying, giving up is like

giving up a three course lunch for a

bag of crisps.

We saw Theresa May

meeting Donald Tusk yesterday and

those pictures of them going into

Downing Street. They don't even seem

to be on the same page at the

moment?

It was always going to be

like this. I think if people thought

it was going to be an ordered

progression and we would tick things

off along the way, was naive. I

think this speech will be important,

there will be a bit more honesty

about having our cake and eating it.

A bit more detail on how she would

like to stay close. There is a three

basket philosophy. The areas we want

to stay close like aviation and

pharmaceuticals. The areas where we

will basically recognise our own

rules, even though we go about it in

a different way and there are areas

where we want to do our own thing.

It is called the three Baskett

philosophy they want to pursue. The

Europeans say it is amounting to

cherry picking and you cannot have

it. One o'clock, the speech.

Simon,

just before you go, Toys R Us,

massive job losses across the world

Europe and Asia?

This is the same

old story, online pressing

traditional retailers. You get your

money in the Christmas, you look at

your business and look see if you

can afford your rent for the rest of

the year. They have said no. It is a

microcosm of larger job losses

across the sector. Give me a reason

to go to the store, is the big

thing.

Simon, thank you.

Stay up-to-date with the business

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live on TV and online, what you need

to know, when you need to know it.

What other business

stories has the media been

taking an interest in?

Alpesh Patel is joining

us again to discuss.

These coast of America, big

snowstorms arriving there as well.

It is such a struggle for people to

get into work, particularly now many

people just don't travel?

Absolutely, it seems a shame to talk

about business angle when lives are

being lost. In terms of lives, look

at the emergency services and you

hear about surgeons walking four

hours to try to do operations and

hospital staff staying overnight in

hospitals and so on. It has been

extraordinary and uplifting from

that angle. From a business

perspective it will have to hit

sales soon. After the battering it

has taken and I feel sorry for those

non-online retailers.

One lady says

I am in Canada and colleagues have

had to Cross-Country Skiing to work

in the past. In Leicester, people

driving with caution and allowing

more driving time. You made it in

and you have a three-day-old baby

that was born in the snow.

He was

born in cyber just down the road. I

thank the midwives who stayed

behind. Midwife Carol in particular

at the Portland. Thank you.

That's it from Business Live today.

There will be more business news

throughout the day on the BBC Live

web page and on World Business

Report.