09/03/2018

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0:00:00 > 0:00:03Live from London, that's our top story on Friday 9 March.

0:00:18 > 0:00:23As President Trump signs off new tariffs on steel

0:00:23 > 0:00:25and aluminium imports, major trading partners

0:00:25 > 0:00:27condemn the move, calling it a "serious attack"

0:00:27 > 0:00:28on international trade.

0:00:28 > 0:00:30Also in the programme.

0:00:30 > 0:00:33Asian markets rise on the news that President Trump is to meet

0:00:33 > 0:00:41North Korean leader Kim Jong-un in person.

0:00:41 > 0:00:51A quick look at the markets in Europe, all in the read so far.

0:00:51 > 0:00:53-- red.

0:00:53 > 0:00:55And we'll be getting the inside track

0:00:55 > 0:00:57on the week in tech.

0:00:57 > 0:00:58President Trump has been asking whether violent video games

0:00:58 > 0:01:00have a role to play in preventing gun violence.

0:01:00 > 0:01:02And why has Amazon's home assistant Alexa started laughing?

0:01:02 > 0:01:06All that with our resident tech guru Rory Cellan Jones.

0:01:06 > 0:01:09Today, steel tarrifs.

0:01:09 > 0:01:11Tomorrow, potentially higher prices on things like peanut butter

0:01:11 > 0:01:13and blue jeans.

0:01:13 > 0:01:16Are you worried that a trade war will make imported

0:01:16 > 0:01:17goods more expensive?

0:01:17 > 0:01:19Let us know what you think.

0:01:19 > 0:01:24Just use the hashtag, #BBCBizLive.

0:01:32 > 0:01:35Hello and welcome to Business Live.

0:01:35 > 0:01:38Major US trading partners have condemned

0:01:38 > 0:01:40President Trump for signing new tariffs on steel

0:01:40 > 0:01:45and aluminium imports.

0:01:45 > 0:01:48China described it as a "serious attack" on the system

0:01:48 > 0:01:50of international trade while the French Economy Minister

0:01:50 > 0:01:54said there were "only losers" in a trade war.

0:01:54 > 0:01:58The import duties will go into effect in two weeks' time.

0:01:58 > 0:02:01Kim Gittleson in New York explains how the sanctions will work.

0:02:01 > 0:02:06So you have been hearing about these tariffs for over a week now.

0:02:06 > 0:02:10We have to protect and build our steel and aluminium industries.

0:02:10 > 0:02:13President Trump has finally signed the proclamations that make these

0:02:13 > 0:02:16tariffs a reality.

0:02:16 > 0:02:20So what do you need to know?

0:02:20 > 0:02:22The first thing is they fulfil a key campaign promise President

0:02:22 > 0:02:27Trump made to American steelworkers.

0:02:27 > 0:02:30As of March 23 there will be a 25% tariff on imported steel and 10%

0:02:30 > 0:02:31tariff on imported aluminium.

0:02:31 > 0:02:35Not everyone will be subject.

0:02:35 > 0:02:42Mexico and Canada will be exempt because the US

0:02:42 > 0:02:46is negotiating with them as part of the North American Free Trade

0:02:46 > 0:02:49Agreement, and in a White House that likes a show it has invited

0:02:49 > 0:02:51countries around the world to apply for exemptions.

0:02:51 > 0:02:57Countries must first show they are not a threat to

0:02:57 > 0:02:59national security but it pays to remember these

0:02:59 > 0:03:02tariffs aren't popular.

0:03:02 > 0:03:04They have been rejected by key foreign allies,

0:03:04 > 0:03:07many members of the Republican Party and many in the

0:03:07 > 0:03:10industries President Trump has said he hopes to help.

0:03:10 > 0:03:13Including this Korean manufacturer in Phoenix.

0:03:13 > 0:03:16We can import a lot of specialty steel

0:03:16 > 0:03:19from Europe and will have to continue to import from Europe

0:03:19 > 0:03:26because it is not available in the US.

0:03:26 > 0:03:29For that steel we purchase from Europe it will cost 25% more.

0:03:29 > 0:03:33Why should the rest of the world care?

0:03:33 > 0:03:36These significant tariffs of aluminium and steel mark a

0:03:36 > 0:03:38significant departure away from decades long policies

0:03:38 > 0:03:40towards free trade in favour of a more

0:03:40 > 0:03:44protectionist stance by the Trump administration.

0:03:44 > 0:03:47And they could be the first shot at an ongoing global

0:03:47 > 0:03:49trade war.

0:03:56 > 0:03:58Charles de Lusignan is the spokesperson

0:03:58 > 0:04:05for the European Steel Association and he joins us from Brussels.

0:04:05 > 0:04:10We have heard this week from the European Commissioner for trade

0:04:10 > 0:04:14warning that the EU could potentially go to full take in

0:04:14 > 0:04:19reciprocal tariffs, we had from Donald Tusk saying politicians on

0:04:19 > 0:04:24both side of the Atlantic need to act responsibly. Is this robust

0:04:24 > 0:04:32response particularly the kind from the EU what we should be hearing

0:04:32 > 0:04:36from the EU? Will it help soften the impact of what Donald Trump has said

0:04:36 > 0:04:40or will it heighten the prospect of a trade war?

0:04:40 > 0:04:46Hello. Like you the having me on. What the commissioner has put

0:04:46 > 0:04:52forward is a three pronged approach involving a complaint to the WTO,

0:04:52 > 0:04:58safeguards against trade deflection of products, and finally a list of

0:04:58 > 0:05:08retaliatory measures. The list has been specifically calculated to be

0:05:08 > 0:05:13of a value equivalent to the estimated foregone loss of exports

0:05:13 > 0:05:19of steel to the US. The EU does not want a trade war, their measures are

0:05:19 > 0:05:28titrated to show the US -- are calculated to show the US they are

0:05:28 > 0:05:35reciprocal and not aggressive.There are fears some of the steel that was

0:05:35 > 0:05:38previously exported to the US might now come to Europe, are you

0:05:38 > 0:05:44concerned? Yes, the US imports every year 35

0:05:44 > 0:05:49million tonnes under the scope of what they have covered in the

0:05:49 > 0:05:54measures and we estimate as much as 20 million could turn around to

0:05:54 > 0:06:00Europe, many of the same countries in the top ten of US exporters are

0:06:00 > 0:06:06the same who go to Europe, Brazil and Turkey are large exporters to

0:06:06 > 0:06:12the US, they will head straight to the EU. Trade deception could have a

0:06:12 > 0:06:16larger effect on the industry than the loss of exports.

0:06:16 > 0:06:28We know those concerns within the EU will be raised in -- on Saturday,

0:06:28 > 0:06:34that the EU should be excluded from these tariffs, how hopeful are you?

0:06:34 > 0:06:39In the announcement yesterday by tramp he equated being lifted,

0:06:39 > 0:06:48excluded from tariffs with spending more on Nato commitment -- I Donald

0:06:48 > 0:06:55Trump. The US has always provided the cover in Europe and what it is

0:06:55 > 0:07:00true Nato allies could spend more, linking it to trade and steel and

0:07:00 > 0:07:08kicking off a trade war seems like an odd way.

0:07:08 > 0:07:1315% of Europe's still goes to the US, what will happen with that

0:07:13 > 0:07:22steel? If it is EU steel exports, the

0:07:22 > 0:07:26reality is that might result in production cuts along with the trade

0:07:26 > 0:07:35deception immediately causing 25,000 EU jobs at risk Fletcher deflection.

0:07:35 > 0:07:42There may be a game in the US of jobs, our estimates suggest there

0:07:42 > 0:07:47could be 104 days it's as job losses there. President Trump alleges he is

0:07:47 > 0:07:58a business man but making a product that your country relies on, will

0:07:58 > 0:08:01have an effect on your competitiveness. Cars, construction

0:08:01 > 0:08:09of a steel which will be 25% more expensive which will have a very

0:08:09 > 0:08:14serious effect on US competitiveness downstream in addition to knocking

0:08:14 > 0:08:18heads off the steel industry in Europe which has only just seen a

0:08:18 > 0:08:22slow recovery.

0:08:22 > 0:08:25Let's take a look at some of the other

0:08:25 > 0:08:26stories making the news.

0:08:26 > 0:08:31Inflation in China rose to 2.9% in February,

0:08:31 > 0:08:32well above forecasts and flirting with the Government's newly set 2018

0:08:32 > 0:08:34goal of around 3%.

0:08:34 > 0:08:44It was the fastest pace of consumer inflation since November 2013.

0:08:45 > 0:08:5011 Asia-Pacific countries have signed the trade pact known as the

0:08:50 > 0:08:53Trans-Pacific Partnership. Although the US pulled out last year the deal

0:08:53 > 0:08:58was salvaged by the remaining members.

0:08:58 > 0:09:05Former US president Barack Obama is in advanced talks with Netflix on

0:09:05 > 0:09:11shows, according to a New York Times report. Netflix will pay the family

0:09:11 > 0:09:16for exclusive content on its video streaming service.

0:09:16 > 0:09:19Asian markets rallied on Friday, on hopes that

0:09:19 > 0:09:22North Korean nuclear tensions might be easing.

0:09:22 > 0:09:25Investors responded to US President Donald Trump accepting

0:09:25 > 0:09:27an invitation for face-to-face talks with North Korean

0:09:27 > 0:09:28leader Kim Jong-un.

0:09:28 > 0:09:35Sarah Toms has more.

0:09:35 > 0:09:39Welcome, bring us up to date on how the markets reacted?

0:09:39 > 0:09:50It should be no surprise markets across Asia were up today, in South

0:09:50 > 0:09:56Korea, the best day in ten months. And in Japan. This meeting between

0:09:56 > 0:10:03Donald Trump and Kim Jong-un comes as a huge relief because investors

0:10:03 > 0:10:10don't want conflict and they do not want it especially between the

0:10:10 > 0:10:20world's most volatile leaders who called each other the rocket man for

0:10:20 > 0:10:25example. The region is vital to global shipping and manufacturing.

0:10:25 > 0:10:32Any kind of escalation could disrupt trade, and any economic activity.

0:10:32 > 0:10:36What is interesting about this meeting is what does it actually say

0:10:36 > 0:10:41about the state of the North Korean economy and how badly is it doing as

0:10:41 > 0:10:46those sanctions begin to take effect and start to bite.

0:10:46 > 0:10:49Thank you.

0:10:49 > 0:10:52Here are the markets.

0:10:52 > 0:10:59Asian markets rallied on the back of peace hopes.

0:10:59 > 0:11:02There was already some optimism on the markets after Mr Trump

0:11:02 > 0:11:04earlier left the door open for possible exemptions on US

0:11:04 > 0:11:09tariffs on steel and aluminium.

0:11:09 > 0:11:13Little reaction to news those import tariffs were going ahead.

0:11:13 > 0:11:15Hong Kong's Hang Seng edged up 0.7%.

0:11:15 > 0:11:18In Europe.

0:11:18 > 0:11:20There's a sense of disbelief among some market analysts

0:11:20 > 0:11:23as the announcement of new US tariffs which had been stoking fears

0:11:23 > 0:11:26of a global trade war, fails to deliver the predicted sell-off.

0:11:26 > 0:11:35There will be reaction with the US job figures. A month ago those

0:11:35 > 0:11:37figures impacted quite significantly, massive falls across

0:11:37 > 0:11:40the world.

0:11:40 > 0:11:42Joining us is Tom Stevenson, investment director

0:11:42 > 0:11:46at Fidelity International.

0:11:46 > 0:11:53We have had some breaking news, the UK is going to seek an exemption

0:11:53 > 0:12:01from President Trump's tariffs, we heard from Liam Fox who says he will

0:12:01 > 0:12:05travel to Washington next week to discuss the new duties and says we

0:12:05 > 0:12:09will be looking to see how we can maximise our case for exception

0:12:09 > 0:12:16under these circumstances. The UK will ask for an exemption. All of

0:12:16 > 0:12:24this talk about tariffs has exerted a robust response -- response from

0:12:24 > 0:12:30the EU and now the UK, are we in danger of moving towards global

0:12:30 > 0:12:38protectionism? When Donald Trump was elected a year

0:12:38 > 0:12:42ago it was a double edged sword. People worried about his

0:12:42 > 0:12:47protectionism, his nationalism, but they looked on the positive side

0:12:47 > 0:12:54with tax reforms and infrastructure spending. In the first year debate

0:12:54 > 0:12:59focused on the positives. More recently we have seen the

0:12:59 > 0:13:03Protectionist angle coming to the fore. Britain would be the only one

0:13:03 > 0:13:11an exemption. To impose tariffs on the basis of national security is a

0:13:11 > 0:13:18nonsense, with Canada, Europe and the UK, it makes no sense.It is

0:13:18 > 0:13:24interesting how Donald Trump is framing the debate.It is targeted

0:13:24 > 0:13:31at China. China will probably be least affected by these measures.

0:13:31 > 0:13:36The markets have taken it in their stride. They don't think it is

0:13:36 > 0:13:40likely to happen in the form being presented.

0:13:40 > 0:13:47We can be a bit more relaxed. Having a look at the markets, and the US

0:13:47 > 0:13:52job figures due to be out, the markets are steadying themselves.

0:13:52 > 0:13:56Attention will be paid to them because a month ago when we had

0:13:56 > 0:14:02those figures they caused a wobble in the markets. We will see strong

0:14:02 > 0:14:10figures again, 200,000 jobs created, and implement at 4%, as low as 17

0:14:10 > 0:14:16years ago at the peak of the dot-com bubble. That is what investors are

0:14:16 > 0:14:20worried about, that it will lead to bond yields rising, interest rates

0:14:20 > 0:14:27rising. We will see you later. Thank you.

0:14:27 > 0:14:28Still to come.

0:14:28 > 0:14:32We look back at the week in tech.

0:14:32 > 0:14:35Why has Amazon's home assistant Alexa started laughing unexpectedly?

0:14:35 > 0:14:37We'll look at this and other stories

0:14:37 > 0:14:38with our resident tech guru Rory Cellan Jones.

0:14:38 > 0:14:41You're with Business Live from BBC News.

0:14:51 > 0:14:53Restaurant chain Wagamama has been fined an undisclosed amount

0:14:53 > 0:14:58for failing to pay staff the National Minimum Wage.

0:14:58 > 0:15:00It's among 43 employers in the hospitality sector

0:15:00 > 0:15:03on the government's latest list of firms breaking the law.

0:15:03 > 0:15:13Wagamama's HR director Thomas Heier joins us now.

0:15:16 > 0:15:22This happened on your watch.Are you responsible for this? Yes, it has

0:15:22 > 0:15:27happened and it was brought to our attention in 2016 and we address did

0:15:27 > 0:15:34-- addressed it and subsequently introduced a uniform supplement that

0:15:34 > 0:15:42we pay to all of our people from here on in.You said this was down

0:15:42 > 0:15:46to an inadvertent misunderstanding and about uniforms and the fact that

0:15:46 > 0:15:49staff were told to wear a certain uniform you didn't offer to pay for

0:15:49 > 0:15:54it. We've now had to recompense people in your company was the worst

0:15:54 > 0:15:57offender in this latest naming and shaming list that is damning

0:15:57 > 0:16:03indictment.Just to respond to what you said, it was about as asking

0:16:03 > 0:16:06people to wear the colour black on the bottom half of their body, so

0:16:06 > 0:16:12black jeans, shirts, trousers and shoes. We do provide a branded

0:16:12 > 0:16:17T-shirt or top and ultimately we were not aware that by stipulating

0:16:17 > 0:16:21black we were in breach of the legislation. Had we stipulated dark,

0:16:21 > 0:16:27we might not have been on the list. But you are an HR director, so isn't

0:16:27 > 0:16:32it your job to be on top of this? You are right, and we need to learn

0:16:32 > 0:16:38from that as a business.Are you surprised you are still in a job?We

0:16:38 > 0:16:44are now dealing with that.I'm surprised you still have your job?I

0:16:44 > 0:16:48wasn't here when that happened but I do take accountability for it and

0:16:48 > 0:16:51honestly I'm working with the team to move forward from here on in.You

0:16:51 > 0:16:57are off the hook. Banks were talking to us. The Institute of directors

0:16:57 > 0:17:03has suspended its chair, Lady Judge as it examines claims about her

0:17:03 > 0:17:07conduct that include racist, sexist and bullying behaviour. It issued a

0:17:07 > 0:17:11one line statement this morning as the council took the decision having

0:17:11 > 0:17:18received an executive summary to suspend the chair pending further

0:17:18 > 0:17:24investigation. Much more on the BBC website.

0:17:29 > 0:17:30You're watching Business Live.

0:17:30 > 0:17:31Our top story.

0:17:31 > 0:17:33China has condemned big steel and aluminium tariffs signed off

0:17:33 > 0:17:37by Mr Trump as an attack on the global trade system.

0:17:37 > 0:17:41A quick look at how markets are faring.

0:17:44 > 0:17:51It is largely shrugging off these potential murmurs of a trade war,

0:17:51 > 0:17:54although European markets have opened slightly in the red this

0:17:54 > 0:17:55morning.

0:17:55 > 0:17:57And now let's get the inside track on this week's big

0:17:57 > 0:18:01tech stories with our resident tech guru Rory Cellan-Jones.

0:18:01 > 0:18:05Do you like being called a guru? I feel we should all sit there

0:18:05 > 0:18:13cross-legged. Rory, good morning. Your first story is about Trump is

0:18:13 > 0:18:16holding a video games conference or meeting of the back of that awful

0:18:16 > 0:18:22shooting in Florida school last month.As we know, very little news

0:18:22 > 0:18:25out of the Donald Trump White House in the last 24 hours, but this is

0:18:25 > 0:18:29the big news, a summit with a video game industry. One of these things

0:18:29 > 0:18:35where the video game industry is cynical about this. It is felt

0:18:35 > 0:18:39around the world that it's an easy punchbag for politicians. But there

0:18:39 > 0:18:43is concern around the world about the impact of video games on young

0:18:43 > 0:18:46people and whether it promotes violence. I think the video games

0:18:46 > 0:18:53industry would say that the same games are played in the UK,

0:18:53 > 0:19:01Australia as in the US yet we have different levels of gun violence.

0:19:01 > 0:19:11Exactly. They would have pushed back about this. Each side says it is a

0:19:11 > 0:19:19fruitful meeting and I don't think much will come out of it.You Tube,

0:19:19 > 0:19:23they are rallying over its content with advertisers following a

0:19:23 > 0:19:29problem.There have been a number of stories that has blown up about

0:19:29 > 0:19:34Google and its ability to deal with extremist videos and unpleasant

0:19:34 > 0:19:40content. There is a far right video that kept popping up despite the

0:19:40 > 0:19:48fact you tube said it had taken it down. And a more interesting row

0:19:48 > 0:19:55involving a right wing conspiracy site in the US, Info wars, which is

0:19:55 > 0:20:00legal in the terms of YouTube and might not want to take that site

0:20:00 > 0:20:03down. But advertisers discovered that their messages were appearing

0:20:03 > 0:20:09alongside this material and they were shocked at that. This really

0:20:09 > 0:20:13highlights the whole debate about online advertising. Online

0:20:13 > 0:20:18advertising was supposed to promise absolute targeting and control and

0:20:18 > 0:20:25the impact of the ads and it's turned out to be not the case.

0:20:25 > 0:20:31Advertisers are finding they give their money to Google and YouTube

0:20:31 > 0:20:34they appear in places they don't want them to be and they are cross

0:20:34 > 0:20:39about it.Have you been hearing strange cackling in your house?

0:20:39 > 0:20:43There is always strange cackling in my house. You are obviously talking

0:20:43 > 0:20:49about the story of the week, the Amazon Smart Speaker, let's hear it.

0:20:49 > 0:20:58It is a bit creepy.This is one of those funny things and there has

0:20:58 > 0:21:02been talk of a long time about unexplained things happening with

0:21:02 > 0:21:05their smart speakers. I was sat in front of a popular quiz show in the

0:21:05 > 0:21:12UK a few months ago and my Amazon Eco piped up with, I don't know the

0:21:12 > 0:21:16answer to that question. But what happened this week was that people

0:21:16 > 0:21:22reported unexplained laughter.You are supposed to have two acts of

0:21:22 > 0:21:29eight -- activate the Alexa.If I said Alexa, laugh, you could hear

0:21:29 > 0:21:35Alexa devices responding, the Amazon said that was what was happening.

0:21:35 > 0:21:39People said they didn't realise they were joining the words Alexa and

0:21:39 > 0:21:44then laugh, and that is why it was happening. They have changed the

0:21:44 > 0:21:49command so you have to say, can you laugh? And then it utters a very

0:21:49 > 0:21:54disappointing TD.Imagine if you heard the tackle and who did not

0:21:54 > 0:21:58have a Alexa. That is a different story. Always good to talk to you,

0:21:58 > 0:22:08Rory. First, a quick reminder of how to stay in touch. Stay up-to-date

0:22:08 > 0:22:13with the business news as it happens on the live page. There is insight

0:22:13 > 0:22:15and analysis from the team of editors around the globe. And we

0:22:15 > 0:22:20want to hear from you as well. Get involved on the BBC business live

0:22:20 > 0:22:20web page.

0:22:33 > 0:22:41What you need to know when you need to know it. What other business

0:22:41 > 0:22:45stories have the media then taking an interesting? Late Kick Off,

0:22:45 > 0:22:49before we look at some of the stories that caught our eye. --

0:22:49 > 0:22:59before we kick off. People were talking about the cost of things

0:22:59 > 0:23:03like Levis, whiskey, the favourite US brands with those things going

0:23:03 > 0:23:10up. We had some responses, William said, I buy New Zealand peanut

0:23:10 > 0:23:16butter, I'm not fond of Harley-Davidson. Quite specific

0:23:16 > 0:23:22items. Another comment on the Alexa to story. Jerome said he activated

0:23:22 > 0:23:31his this morning. So the cackling is not asked. -- is not ours.I do have

0:23:31 > 0:23:37a Alexa but I had to put it away in a drawer because Mrs Stevenson was

0:23:37 > 0:23:40unhappy with the idea of people listening into our conversations,

0:23:40 > 0:23:47and quite right too.Let's head back to the Financial Times about a story

0:23:47 > 0:23:51about a property conference that happens every year in the south of

0:23:51 > 0:23:58France. The FT is asking, in the current climate, how much money it

0:23:58 > 0:24:01costs the these sort of events, is this something that the property

0:24:01 > 0:24:06sector should be investing its time and money in? Full disclosure, you

0:24:06 > 0:24:12been to this conference.Yes, many years ago, and in a very different

0:24:12 > 0:24:18world. I used to go to it as a reporter to report on the property

0:24:18 > 0:24:27industry and, sadly what people say about these events is true. The

0:24:27 > 0:24:32world has completely moved on in the 25 years since I went. I went in the

0:24:32 > 0:24:35early 90s. I suspect an awful lot of companies will be thinking twice

0:24:35 > 0:24:43about whether they really want to do this and how it looks to the outside

0:24:43 > 0:24:46world and whether that is worth it. People who have gone in the past

0:24:46 > 0:24:50have said there is a seedier side to these unofficial events. I won't put

0:24:50 > 0:24:56you on the spot and ask if you saw any things like that. But they did

0:24:56 > 0:24:59break the story about the President's club in the behaviour of

0:24:59 > 0:25:05some of the men there, who behaved badly. Do you think there will be an

0:25:05 > 0:25:10end to this kind of thing and an end to this type of conference, just

0:25:10 > 0:25:14briefly?As I say, many companies will look and weigh it up, is it

0:25:14 > 0:25:18worth it? There are networking advantages to this conference but if

0:25:18 > 0:25:22it looks bad to the customers, is it worth it?Interesting. Good to see

0:25:22 > 0:25:30you this morning. Thanks for getting in touch on Twitter. Keep your

0:25:30 > 0:25:33thoughts coming in as it's always good to hear from you. Thanks for

0:25:33 > 0:25:34joining us.