A look at the global business stories.
Browse content similar to 07/03/2018. Check below for episodes and series from the same categories and more!
on Wednesday 7th March.
Mr Cohn has been seen
as a moderate voice
in the White House, so his departure
has dealt a big blow to business
leaders hoping to prevent
the US President igniting
a global trade war.
Also in the programme....
Harleys, Levi's and Bourbon -
why the European Union is targeting
classic American goods as it
prepares to retaliate
against those US tariffs.
And all that makes
In Asia markets dropped sharply
and this is how Europe has opened.
And we'll be getting
the inside track on the start-up
siblings who made it big -
You may not have heard
of the Collison brothers
but their payments technology has
made them billions -
they are now among the youngest
self-made billionaires in the world.
Also tomorrow is
Day and to mark the occasion Mattel
has launched a new set
of Barbie dolls - this one
behind me is Nicola Adams
the Olympic boxing champion.
Nicola says she is honoured.
So we want to know who would you
nominate for your Barbie role-model?
Let us know.
There should be a Sally Bundock
Barbie! You heard it here first.
We start at the White House,
where top economic advisor Gary Cohn
has quit after losing a heated
battle President Trump over tariffs.
He opposed President's proposed
steel and aluminium tariffs
because of the impact
on the American economy,
US jobs and the threat
of a global trade war.
In a moment, we'll hear
from a global trade expert but first
Kim Gittleson in New York
has more details.
Gary Cohn has long said he opposed
the tariffs. He is known as somebody
who supports free trade. He worked
at Goldman Sachs and he is a
Democrat. He has clashed with
President Trump on a host of issues.
The thing they seem to agree on was
the tax reform. Beyond that, there
wasn't that much common ground. When
we saw President Trump come out
today saying that he once more
believed he wants these tariffs to
be instituted, it seemed like a done
deal that he would have to resign.
That is part of our team in New
Gary Cohn quitting Trump's
team is the latest
in the transatlantic
tit-for-tat over trade.
Today, the European Commission
hammers out its plan
to counter the US President's threat
of import tariffs of 25% on steel
and 10% on aluminium due this week.
The Commission says response
will comply with WTO rules.
It's drawn up a target list of 100
US goods - worth $3.5
Many of them will have
significant political impact.
Among them the iconic US
motorbike Harley-Davidson -
made in Wisconsin -
home state to House of
Representatives Speaker Paul Ryan.
And Bourbon whiskey -
made in Kentucky, the state
of Senate majority leader Mitch
Orange juice is a key export
for Florida - a vital swing
state in US elections.
And there's the ultimate example
of classic Americana -
Levi's jeans, a US firm that relied
on Europe for a 20% jump
in sales last year.
The row is already hitting business.
largest appliances maker,
is freezing a $250 million
investment in a Tennessee factory
over fears Trump's tariffs
could dent its competitiveness.
Joining us from Brussels
is Allie Renison
of the Institute of Directors,
a business lobby group.
You were listening to all of that,
as we speak, European Commission
representatives are discussing their
next move, what do you expect to
come out of Brussels?
Well, I think
that this is something someone like
Gary Cohn was worried about, the
concerns were the impact to the US
economy and the scale of
retaliation. This is part of the
problem. The EU is looking not just
at retaliating in respect of
products the US and Trump are
putting duty on, they're looking
wider in scope. It is depressing to
hear somebody like president junker
say if the US want to do stupid, we
can do stupid too. That is the
question - how far will it range?
The pressure and the stakes getting
higher by the hour, when we get to a
position where we are talking about
tariffs and barriers to trade, there
is no telling where that will stop?
Yes that is part of it, if you're
looking at how rationale a
proportionate response might look
like, you might hope markets like
the EU would be looking at taking
the case and taking the US's
justification of this under a broad
national security exception to the
WTO, instead a lot of country and
the EU will be thinking after they
act, rather than the other way
How damaging would be a
trade war of this scale be for those
part of your organisation and other
Well, I think one of the
things that people often forget,
certainly the president, there are a
lot of industries who rely on
inputs, processing and consuming
industries and for every one job you
might save with tariffs, you lose
she Sen or eight -- even or eight in
the supply chain. But that often
doesn't get thought about. That is
the biggest concern, the revere
bracing through the supply chain.
Let's take a look
at some of the other
stories making the news.
Australia's economy clocked
up GDP growth of 0.4%
in the last three months of last
year - lower than expected and
marking a weak finish to the year.
A fall in exports in the last
quarter dragged on growth.
Over the year as a whole,
the economy grew by 2.4%
compared to a year earlier,
that's down from 2.9%.
The Royal Bank of Scotland has
agreed a $500 million settlement
with New York State over
the mis-selling of financial
products in the run up to the global
financial crisis in 2008.
RBS is the sixth bank to settle
with the state over similar claims,
linked to risky mortgages.
The agreement will see
the bank pay $400 million
in relief to homeowners, as well as
$100 million to the state.
Blackberry has filed
a lawsuit in the US accusing
Facebook of copying features
from Blackberry Messenger
in a violation of its patent rights.
Blackberry, which was once a leader
in the smartphone market,
says Facebook used the features
and technology in its WhatsApp
and Instagram apps.
The claims come after Blackberry has
increased efforts to make money
from its more than 40,000 patents.
Facebook has said it
would fight the claims.
Lots of stories on the business live
pages. All the news as it breaking,
Paddy Power have reported a 20% rise
in operating profits. A strong
growth in sports betting helped to
boost its figures.
A new blow for Japanese
steel giant Kobe -
US consumers have filed a lawsuit
accusing the company of fraud.
It's the first US consumer
complaint since the Kobe
quality-control scandal broke -
and it also takes aim at Toyota.
Leisha Santorelli is in Singapore.
We talked about this yesterday, and
the boss and all the ongoing chaos
around the world, this just the
Yes the fallout
continues this is possibly the first
class action that Kobe steel have to
face. So in this US court filing,
Kobe is accused of breaking US
consumer laws by covering up the
fact they used sub standard metal
used in cars. This includes very
popular models. So Kobe has taken a
massive reputational hit in America
and they will have to try and limit
the damage. As we reported
yesterday, their president is
stepping down, as is the boss of its
aluminium and copper unit. But that
won't stop the legal risks and won't
limit the hits to their share price,
they fell by another 7% in Tokyo
today to close at its lowest level
this year. The fallout will have to
be contained in the months to come.
Before you go, we are asking people
about inspirational business women
that could be immortised by Barbie,
anyone in your part of world?
replied to Sally on Twitter, I think
a great idea is to allow people to
customise their dolls, so if I had a
daughter they should make one in her
likeness. Or as my mum.
mother's day on Sunday. So good
timing. Thank you. Here is what is
happening on the markets. Some
volatility after the news that Mr
Cohn is leaving the White House. He
is leaving, investors are nervous.
So that is what happened in the US
and Asia. Now Europe and it doesn't
look like I can show you the numbers
now, but we are expecting it to look
weaker as a result of that nervous
frns investors -- nervousness from
investors. Sally has the European
Yes you can see it is flat.
Brent crude down a per cent and our
regular guest is with us.
Justin Urquhart Stewart
is with us, of Seven
You were listening to the
conversation about trade. Give us
your take on this and how it is
being interpreted in the markets.
The backdrop is the global economy
doing well, but you have got to put
the issue of trade wars and that is
a very serious issue for the
markets. Add to that Mr Cohn going.
Without him, who is controlling the
mad house? The result is markets are
sailing into the wind, the sails are
flapping, they haven't got a
direction. Behind that you will see
interest rates rising in the
interest and that will put further
pressure on the markets.
uncertainty, people are looking
elsewhere for places to put their
money. We have talked about bit coin
and seeing a relationship. You have
been looking at an interesting way
that people might be investing.
people will know. One lovely thing I
You can invest in
Not any old handbag. 2010.
A hand made Himalaya bag and that
has been auctioned for 157,000
That is a good return.
portable and in terms of the
elements to invest in, it is
something physical you can see. It
is better than the bitcoin.
you use it if it costs 29,000 euros.
Depends who you are. Maybe we could
have a Barbie doll with the handbag.
An incredible asset. Thank you. He
will be back. More to discuss,
including his Barbie doll
Still to come: The startup siblings
that made their billions from smart
online payments sytems Stripe -
we talk to one
of the Collinson brothers
about how they made it big.
You're with Business
Live from BBC News.
More debate of the Brexit in the UK.
Philip Hammond will tell European
leaders it's in the "mutual
interest" of the UK and the EU
to include financial services
in a free trade agreement.
The UK Chancellor is due
to make the argument
in a speech later today.
Our economics editor
Kamal Ahmed has details.
Tell us what he is going to say.
This is the latest stage in that
Brexit battle. It is over an
important part of the trade
negotiations that are coming up -
financial services. For Britain,
they're incredibly important. Not
just for the two million jobs that
are connected to financial services
across the UK, but because Britain
has a trade surplus with the EU on
financial services of about £20
billion a year. So very valuable to
Britain. Philip Hammond is saying it
is also valuable to the EU - London
is a huge global market, where lots
of European governments and
businesses raise a lot of money. And
he is going to say that it is
important for both sides that there
is a deep and special agreement
between Britain and the EU once we
have left the single market. Which
at the moment give us privileged
access to the EU. It seems that his
position has already been rejected
by the European Commission. Today,
Donald Tusk is going to say any free
trade deal cannot involve financial
services. But we need to remember
these are negotiations and you put
out your stall and make your
argument and both sides probably
admit in the end there will be some
form of agreement.
This is one of those perfect
examples where critics will say you
cannot have your cake and eat it.
Yes but for the EU it is important
they keep links to London. Frankly
neither Frankfurt, Paris, nor any
centre in EE you can maintain the
financing operations they have, so
they will meet London in this
instance. -- nor any centre in the
DHL has reported its
results. Last year profits up 7.2%.
You're watching Business Live -
our top story -
the top economic advisor
to the White House, Gary Cohn
has quit after a battle
President Trump over tariffs.
He opposed President's proposed
steel and aluminium tariffs
because of the impact
on the American economy,
US jobs and the threat
of a global trade war.
That has left investors pretty
That has left investors pretty
nervous. We can show you what
trading is doing in the European
Some suggesting this can only
Some suggesting this can only do one
thing, which is harm global trade.
We often introduce you to
interesting businesses and
And today's guest is no exception.
His name is John Collison
and with the help of his brother
Patrick he founded "Stripe".
Stripe enables businesses around
the world to more easily
accept online payments
and run their websites.
Set up in San Francisco six years
ago, it now has over
100,000 customers worldwide
including the likes of Amazon,
Fitbit and Facebook.
In 2016 it announced
a new round of funding that valued
the company at $9.2 billion.
According to Forbes that means
the brothers are now worth
upwards of $1.1 billion each.
And at 27 John is the world's
youngest self-made billionaire.
Where did we go wrong?
We are just a little bit jealous.
Yes, we sent somebody else because
we were so jealous.
Our Business Editor Simon Jack
went along to meet him
and began by asking for the secret
of his success?
It was valuable that myself and
Patrick at the technical background
to be able to build the first
version of Stripe. Because you can
build a product, see if it works for
customers, make changes, wash and
repeat on a two-day cycle. One is
the career track of being a software
developer. It will continue to be a
good one for decades to come. I
think that is a good bet to make.
The second thing is, I think in the
case of Stripe, it was helpful that
it was a gradual process. We came to
the idea because we had started an
Internet business before. We were
gobsmacked at how easy it was to
accept money. We started using a
prototype. We got a user using us.
Then another, and then after a while
things started to snowball. But that
is the other thing I would encourage
people, especially if they are in
that starting position, if you pay
close attention to what the
customers are saying about the
actual problems you can learn a lot
just through the listening process.
You have 25 people in London, 700 in
California, now you are betting big
in Dublin. People think that London
is the thin tech hub in London, you
are betting on Dublin, wife?
has been our European headquarters
from day one. If a few reasons for
that. It is in the EU. Also, Dublin
is increasing its phenomenal talent
market. Where you have this melting
pot effect. It reminds me of what
you get in the valley and what you
get in London, people coming from
all over Europe to work in Dublin.
We are using Dublin as a hub for
which to serve Europe, the Middle
East, and Africa.
What is the threat
to the -- what is the threat Brexit
has on London as the tech hub?
one. It is twofold. Firstly, in
actuality, it'll get harder to have
a talent hub here where people from
across Europe, especially, are
coming to work. We are seeing this
in the US right now where it has
already proven the case that people
are less willing to move to the US.
They don't even want to enter the
Visa process because of what they
perceive to be the political climate
and how the country is towards
foreigners. I think that is the
perception and that'll get difficult
for people to go over there.
seeing it already here?
seeing it already in the US and we
are worried about seeing it in the
If recruitment gets harder, if
people are less willing to move to
the UK, for example, what the
penalty, what happens?
risks we are talking about is does
the UK have a vibrant tech centre
and start-up system. That is putting
it into stark terms. I think it
will, but how successful it will be,
I think there are degrees of success
we can talk about there. We might be
looking at a lower level than
If you had a message to
the Government, as they are thinking
about this, from your sector, what
would it be?
It is a bit of a factor
of what is done is done, on the
Brexit side, but I think what we can
affect is people's perceptions of
the UK and the UK as an attractive
investment climate. And the
attractiveness of moving to the UK.
Like I said, in the US, I think that
is something we are risking, we are
sending the message that people
should not come to the US, but we
should be sending the opposite
message. We need to make it clear to
people that the UK is still a great
place to emigrate to.
returned, as promised. We have lots
to discuss, including your
nominations for the Barbie doll
idea. First, this story in the
papers. Debenhams to rent flagship
store space to people who hot desk.
This is a sign of The Times, isn't
it, with these big department stores
are really struggling.
It isn't good
news, it is just showing a problem.
Debenhams has all of this space. But
Debenhams is a shop where people go
and rent spaces. This is just an
extension of that. A lot of these
businesses, and yet the same with
House of Fraser, they are all
suffering. All of the news we have
had is that the bottom has fallen
out of the retail basket. Many of
these shops are having real
The bricks and mortar
basket, is that what we are
Exactly. The online ones
are still there. One prime example
is John Lewis that works
effectively. But where that hasn't
happened you are in difficulty.
lot of big supermarkets have done
this, as well. They have been
leasing space to dry cleaners,
cafes, key cutters, this is just an
And a logical extension.
This reflects what has happened to
British business. We are sitting at
record numbers of new businesses,
600,000 per year. Go back 30 years,
that number would be around 180,000.
Still a high rate. But we are being
much more entrepreneurial than
France and Germany. What we must do
is nurture these. Providing sites
like this is a good way of doing it.
But beyond that you need to be able
to finance. And access to long-term
finance, not just short-term
Why is Washington so obsessed with
China's Huawei. It is proving to be
pretty dominant in the market.
Almost challenging Apple and
Just how close is Huawei to
the Government? These companies are
intrinsically linked. If you are
allowing Huawei into high-tech
areas, which can affect national
communications with some influence,
that level of high-tech, I am
talking about five G, then you need
to control it, see who is involved.
We are more accepting of it over
here. Vodafone already has a deal
with Huawei. More to come on that.
Nominations for new goals. The maker
of Barbie says it will be
recognising International Women's
Day tomorrow and will come out with
some new models. There is Nicola
Adams with a goal with her likeness.
Were talking about this, who would
And she ran the economy.
Boudicca... And I thought of Mary
Queen of Scots, you can have an
accessory where you might be able to
remove the head.
Or Mrs Pankhurst holding a placard
about the suffragettes. You need to
access rights these things.
Thank you. Just quickly, Amelia
Earhart has already