09/03/2018 BBC Business Live


09/03/2018

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Transcript


LineFromTo

Live from London, that's our top

story on Friday 9 March.

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As President Trump signs off

new tariffs on steel

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and aluminium imports,

major trading partners

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condemn the move, calling

it a "serious attack"

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on international trade.

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Also in the programme.

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Asian markets rise on the news that

President Trump is to meet

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North Korean leader

Kim Jong-un in person.

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A quick look at the markets in

Europe, all in the read so far.

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-- red.

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And we'll be getting

the inside track

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on the week in tech.

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President Trump has been asking

whether violent video games

0:00:570:00:58

have a role to play

in preventing gun violence.

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And why has Amazon's home assistant

Alexa started laughing?

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All that with our resident tech

guru Rory Cellan Jones.

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Today, steel tarrifs.

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Tomorrow, potentially higher prices

on things like peanut butter

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and blue jeans.

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Are you worried that a trade

war will make imported

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goods more expensive?

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Let us know what you think.

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Just use the hashtag, #BBCBizLive.

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Hello and welcome to Business Live.

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Major US trading

partners have condemned

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President Trump for signing

new tariffs on steel

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and aluminium imports.

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China described it as a "serious

attack" on the system

0:01:450:01:48

of international trade

while the French Economy Minister

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said there were "only

losers" in a trade war.

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The import duties will go

into effect in two weeks' time.

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Kim Gittleson in New York explains

how the sanctions will work.

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So you have been hearing about these

tariffs for over a week now.

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We have to protect and build our

steel and aluminium industries.

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President Trump has finally signed

the proclamations that make these

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tariffs a reality.

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So what do you need to know?

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The first thing is they fulfil a key

campaign promise President

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Trump made to American steelworkers.

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As of March 23 there will be a 25%

tariff on imported steel and 10%

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tariff on imported aluminium.

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Not everyone will be subject.

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Mexico and Canada will be

exempt because the US

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is negotiating with them as part

of the North American Free Trade

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Agreement, and in a White House that

likes a show it has invited

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countries around the world

to apply for exemptions.

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Countries must first show

they are not a threat to

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national security but it

pays to remember these

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tariffs aren't popular.

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They have been rejected

by key foreign allies,

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many members of the Republican Party

and many in the

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industries President Trump has

said he hopes to help.

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Including this Korean

manufacturer in Phoenix.

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We can import a lot

of specialty steel

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from Europe and will have

to continue to import from Europe

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because it is not

available in the US.

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For that steel we purchase

from Europe it will cost 25% more.

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Why should the rest

of the world care?

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These significant tariffs

of aluminium and steel mark a

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significant departure away

from decades long policies

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towards free trade in favour

of a more

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protectionist stance

by the Trump administration.

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And they could be the first shot

at an ongoing global

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trade war.

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Charles de Lusignan

is the spokesperson

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for the European Steel Association

and he joins us from Brussels.

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We have heard this week from the

European Commissioner for trade

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warning that the EU could

potentially go to full take in

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reciprocal tariffs, we had from

Donald Tusk saying politicians on

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both side of the Atlantic need to

act responsibly. Is this robust

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response particularly the kind from

the EU what we should be hearing

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from the EU? Will it help soften the

impact of what Donald Trump has said

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or will it heighten the prospect of

a trade war?

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Hello. Like you the having me on.

What the commissioner has put

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forward is a three pronged approach

involving a complaint to the WTO,

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safeguards against trade deflection

of products, and finally a list of

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retaliatory measures. The list has

been specifically calculated to be

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of a value equivalent to the

estimated foregone loss of exports

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of steel to the US. The EU does not

want a trade war, their measures are

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titrated to show the US -- are

calculated to show the US they are

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reciprocal and not aggressive.

There

are fears some of the steel that was

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previously exported to the US might

now come to Europe, are you

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concerned?

Yes, the US imports every year 35

0:05:380:05:44

million tonnes under the scope of

what they have covered in the

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measures and we estimate as much as

20 million could turn around to

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Europe, many of the same countries

in the top ten of US exporters are

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the same who go to Europe, Brazil

and Turkey are large exporters to

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the US, they will head straight to

the EU. Trade deception could have a

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larger effect on the industry than

the loss of exports.

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We know those concerns within the EU

will be raised in -- on Saturday,

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that the EU should be excluded from

these tariffs, how hopeful are you?

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In the announcement yesterday by

tramp he equated being lifted,

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excluded from tariffs with spending

more on Nato commitment -- I Donald

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Trump. The US has always provided

the cover in Europe and what it is

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true Nato allies could spend more,

linking it to trade and steel and

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kicking off a trade war seems like

an odd way.

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15% of Europe's still goes to the

US, what will happen with that

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steel?

If it is EU steel exports, the

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reality is that might result in

production cuts along with the trade

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deception immediately causing 25,000

EU jobs at risk Fletcher deflection.

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There may be a game in the US of

jobs, our estimates suggest there

0:07:350:07:42

could be 104 days it's as job losses

there. President Trump alleges he is

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a business man but making a product

that your country relies on, will

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have an effect on your

competitiveness. Cars, construction

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of a steel which will be 25% more

expensive which will have a very

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serious effect on US competitiveness

downstream in addition to knocking

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heads off the steel industry in

Europe which has only just seen a

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slow recovery.

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Let's take a look

at some of the other

0:08:220:08:25

stories making the news.

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Inflation in China rose

to 2.9% in February,

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well above forecasts and flirting

with the Government's newly set 2018

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goal of around 3%.

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It was the fastest pace of consumer

inflation since November 2013.

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11 Asia-Pacific countries have

signed the trade pact known as the

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Trans-Pacific Partnership. Although

the US pulled out last year the deal

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was salvaged by the remaining

members.

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Former US president Barack Obama is

in advanced talks with Netflix on

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shows, according to a New York Times

report. Netflix will pay the family

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for exclusive content on its video

streaming service.

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Asian markets rallied

on Friday, on hopes that

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North Korean nuclear tensions

might be easing.

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Investors responded to US

President Donald Trump accepting

0:09:220:09:25

an invitation for face-to-face talks

with North Korean

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leader Kim Jong-un.

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Sarah Toms has more.

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Welcome, bring us up to date on how

the markets reacted?

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It should be no surprise markets

across Asia were up today, in South

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Korea, the best day in ten months.

And in Japan. This meeting between

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Donald Trump and Kim Jong-un comes

as a huge relief because investors

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don't want conflict and they do not

want it especially between the

0:10:030:10:10

world's most volatile leaders who

called each other the rocket man for

0:10:100:10:20

example. The region is vital to

global shipping and manufacturing.

0:10:200:10:25

Any kind of escalation could disrupt

trade, and any economic activity.

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What is interesting about this

meeting is what does it actually say

0:10:320:10:36

about the state of the North Korean

economy and how badly is it doing as

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those sanctions begin to take effect

and start to bite.

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Thank you.

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Here are the markets.

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Asian markets rallied

on the back of peace hopes.

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There was already some optimism

on the markets after Mr Trump

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earlier left the door open

for possible exemptions on US

0:11:020:11:04

tariffs on steel and aluminium.

0:11:040:11:09

Little reaction to news those import

tariffs were going ahead.

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Hong Kong's Hang Seng edged up 0.7%.

0:11:130:11:15

In Europe.

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There's a sense of disbelief among

some market analysts

0:11:180:11:20

as the announcement of new US

tariffs which had been stoking fears

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of a global trade war, fails

to deliver the predicted sell-off.

0:11:230:11:26

There will be reaction with the US

job figures. A month ago those

0:11:260:11:35

figures impacted quite

significantly, massive falls across

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the world.

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Joining us is Tom Stevenson,

investment director

0:11:400:11:42

at Fidelity International.

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We have had some breaking news, the

UK is going to seek an exemption

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from President Trump's tariffs, we

heard from Liam Fox who says he will

0:11:530:12:01

travel to Washington next week to

discuss the new duties and says we

0:12:010:12:05

will be looking to see how we can

maximise our case for exception

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under these circumstances. The UK

will ask for an exemption. All of

0:12:090:12:16

this talk about tariffs has exerted

a robust response -- response from

0:12:160:12:24

the EU and now the UK, are we in

danger of moving towards global

0:12:240:12:30

protectionism?

When Donald Trump was elected a year

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ago it was a double edged sword.

People worried about his

0:12:380:12:42

protectionism, his nationalism, but

they looked on the positive side

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with tax reforms and infrastructure

spending. In the first year debate

0:12:470:12:54

focused on the positives. More

recently we have seen the

0:12:540:12:59

Protectionist angle coming to the

fore. Britain would be the only one

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an exemption. To impose tariffs on

the basis of national security is a

0:13:030:13:11

nonsense, with Canada, Europe and

the UK, it makes no sense.

It is

0:13:110:13:18

interesting how Donald Trump is

framing the debate.

It is targeted

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at China. China will probably be

least affected by these measures.

0:13:240:13:31

The markets have taken it in their

stride. They don't think it is

0:13:310:13:36

likely to happen in the form being

presented.

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We can be a bit more relaxed. Having

a look at the markets, and the US

0:13:400:13:47

job figures due to be out, the

markets are steadying themselves.

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Attention will be paid to them

because a month ago when we had

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those figures they caused a wobble

in the markets. We will see strong

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figures again, 200,000 jobs created,

and implement at 4%, as low as 17

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years ago at the peak of the dot-com

bubble. That is what investors are

0:14:100:14:16

worried about, that it will lead to

bond yields rising, interest rates

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rising.

We will see you later. Thank you.

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Still to come.

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We look back at the week in tech.

0:14:280:14:32

Why has Amazon's home assistant

Alexa started laughing unexpectedly?

0:14:320:14:35

We'll look at this and other stories

0:14:350:14:37

with our resident tech

guru Rory Cellan Jones.

0:14:370:14:38

You're

with Business Live from BBC News.

0:14:380:14:41

Restaurant chain Wagamama has been

fined an undisclosed amount

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for failing to pay staff

the National Minimum Wage.

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It's among 43 employers

in the hospitality sector

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on the government's latest list

of firms breaking the law.

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Wagamama's HR director

Thomas Heier joins us now.

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This happened on your watch.

Are you

responsible for this? Yes, it has

0:15:160:15:22

happened and it was brought to our

attention in 2016 and we address did

0:15:220:15:27

-- addressed it and subsequently

introduced a uniform supplement that

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we pay to all of our people from

here on in.

You said this was down

0:15:340:15:42

to an inadvertent misunderstanding

and about uniforms and the fact that

0:15:420:15:46

staff were told to wear a certain

uniform you didn't offer to pay for

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it. We've now had to recompense

people in your company was the worst

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offender in this latest naming and

shaming list that is damning

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indictment.

Just to respond to what

you said, it was about as asking

0:15:570:16:03

people to wear the colour black on

the bottom half of their body, so

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black jeans, shirts, trousers and

shoes. We do provide a branded

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T-shirt or top and ultimately we

were not aware that by stipulating

0:16:120:16:17

black we were in breach of the

legislation. Had we stipulated dark,

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we might not have been on the list.

But you are an HR director, so isn't

0:16:210:16:27

it your job to be on top of this?

You are right, and we need to learn

0:16:270:16:32

from that as a business.

Are you

surprised you are still in a job?

We

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are now dealing with that.

I'm

surprised you still have your job?

I

0:16:380:16:44

wasn't here when that happened but I

do take accountability for it and

0:16:440:16:48

honestly I'm working with the team

to move forward from here on in.

You

0:16:480:16:51

are off the hook. Banks were talking

to us. The Institute of directors

0:16:510:16:57

has suspended its chair, Lady Judge

as it examines claims about her

0:16:570:17:03

conduct that include racist, sexist

and bullying behaviour. It issued a

0:17:030:17:07

one line statement this morning as

the council took the decision having

0:17:070:17:11

received an executive summary to

suspend the chair pending further

0:17:110:17:18

investigation. Much more on the BBC

website.

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You're watching Business Live.

0:17:290:17:30

Our top story.

0:17:300:17:31

China has condemned big steel

and aluminium tariffs signed off

0:17:310:17:33

by Mr Trump as an attack

on the global trade system.

0:17:330:17:37

A quick look at how

markets are faring.

0:17:370:17:41

It is largely shrugging off these

potential murmurs of a trade war,

0:17:440:17:51

although European markets have

opened slightly in the red this

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morning.

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And now let's get the inside

track on this week's big

0:17:550:17:57

tech stories with our resident tech

guru Rory Cellan-Jones.

0:17:570:18:01

Do you like being called a guru? I

feel we should all sit there

0:18:010:18:05

cross-legged. Rory, good morning.

Your first story is about Trump is

0:18:050:18:13

holding a video games conference or

meeting of the back of that awful

0:18:130:18:16

shooting in Florida school last

month.

As we know, very little news

0:18:160:18:22

out of the Donald Trump White House

in the last 24 hours, but this is

0:18:220:18:25

the big news, a summit with a video

game industry. One of these things

0:18:250:18:29

where the video game industry is

cynical about this. It is felt

0:18:290:18:35

around the world that it's an easy

punchbag for politicians. But there

0:18:350:18:39

is concern around the world about

the impact of video games on young

0:18:390:18:43

people and whether it promotes

violence. I think the video games

0:18:430:18:46

industry would say that the same

games are played in the UK,

0:18:460:18:53

Australia as in the US yet we have

different levels of gun violence.

0:18:530:19:01

Exactly. They would have pushed back

about this. Each side says it is a

0:19:010:19:11

fruitful meeting and I don't think

much will come out of it.

You Tube,

0:19:110:19:19

they are rallying over its content

with advertisers following a

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problem.

There have been a number of

stories that has blown up about

0:19:230:19:29

Google and its ability to deal with

extremist videos and unpleasant

0:19:290:19:34

content. There is a far right video

that kept popping up despite the

0:19:340:19:40

fact you tube said it had taken it

down. And a more interesting row

0:19:400:19:48

involving a right wing conspiracy

site in the US, Info wars, which is

0:19:480:19:55

legal in the terms of YouTube and

might not want to take that site

0:19:550:20:00

down. But advertisers discovered

that their messages were appearing

0:20:000:20:03

alongside this material and they

were shocked at that. This really

0:20:030:20:09

highlights the whole debate about

online advertising. Online

0:20:090:20:13

advertising was supposed to promise

absolute targeting and control and

0:20:130:20:18

the impact of the ads and it's

turned out to be not the case.

0:20:180:20:25

Advertisers are finding they give

their money to Google and YouTube

0:20:250:20:31

they appear in places they don't

want them to be and they are cross

0:20:310:20:34

about it.

Have you been hearing

strange cackling in your house?

0:20:340:20:39

There is always strange cackling in

my house. You are obviously talking

0:20:390:20:43

about the story of the week, the

Amazon Smart Speaker, let's hear it.

0:20:430:20:49

It is a bit creepy.

This is one of

those funny things and there has

0:20:490:20:58

been talk of a long time about

unexplained things happening with

0:20:580:21:02

their smart speakers. I was sat in

front of a popular quiz show in the

0:21:020:21:05

UK a few months ago and my Amazon

Eco piped up with, I don't know the

0:21:050:21:12

answer to that question. But what

happened this week was that people

0:21:120:21:16

reported unexplained laughter.

You

are supposed to have two acts of

0:21:160:21:22

eight -- activate the Alexa.

If I

said Alexa, laugh, you could hear

0:21:220:21:29

Alexa devices responding, the Amazon

said that was what was happening.

0:21:290:21:35

People said they didn't realise they

were joining the words Alexa and

0:21:350:21:39

then laugh, and that is why it was

happening. They have changed the

0:21:390:21:44

command so you have to say, can you

laugh? And then it utters a very

0:21:440:21:49

disappointing TD.

Imagine if you

heard the tackle and who did not

0:21:490:21:54

have a Alexa. That is a different

story. Always good to talk to you,

0:21:540:21:58

Rory. First, a quick reminder of how

to stay in touch. Stay up-to-date

0:21:580:22:08

with the business news as it happens

on the live page. There is insight

0:22:080:22:13

and analysis from the team of

editors around the globe. And we

0:22:130:22:15

want to hear from you as well. Get

involved on the BBC business live

0:22:150:22:20

web page.

0:22:200:22:20

What you need to know when you need

to know it. What other business

0:22:330:22:41

stories have the media then taking

an interesting? Late Kick Off,

0:22:410:22:45

before we look at some of the

stories that caught our eye. --

0:22:450:22:49

before we kick off. People were

talking about the cost of things

0:22:490:22:59

like Levis, whiskey, the favourite

US brands with those things going

0:22:590:23:03

up. We had some responses, William

said, I buy New Zealand peanut

0:23:030:23:10

butter, I'm not fond of

Harley-Davidson. Quite specific

0:23:100:23:16

items. Another comment on the Alexa

to story. Jerome said he activated

0:23:160:23:22

his this morning. So the cackling is

not asked. -- is not ours.

I do have

0:23:220:23:31

a Alexa but I had to put it away in

a drawer because Mrs Stevenson was

0:23:310:23:37

unhappy with the idea of people

listening into our conversations,

0:23:370:23:40

and quite right too.

Let's head back

to the Financial Times about a story

0:23:400:23:47

about a property conference that

happens every year in the south of

0:23:470:23:51

France. The FT is asking, in the

current climate, how much money it

0:23:510:23:58

costs the these sort of events, is

this something that the property

0:23:580:24:01

sector should be investing its time

and money in? Full disclosure, you

0:24:010:24:06

been to this conference.

Yes, many

years ago, and in a very different

0:24:060:24:12

world. I used to go to it as a

reporter to report on the property

0:24:120:24:18

industry and, sadly what people say

about these events is true. The

0:24:180:24:27

world has completely moved on in the

25 years since I went. I went in the

0:24:270:24:32

early 90s. I suspect an awful lot of

companies will be thinking twice

0:24:320:24:35

about whether they really want to do

this and how it looks to the outside

0:24:350:24:43

world and whether that is worth it.

People who have gone in the past

0:24:430:24:46

have said there is a seedier side to

these unofficial events. I won't put

0:24:460:24:50

you on the spot and ask if you saw

any things like that. But they did

0:24:500:24:56

break the story about the

President's club in the behaviour of

0:24:560:24:59

some of the men there, who behaved

badly. Do you think there will be an

0:24:590:25:05

end to this kind of thing and an end

to this type of conference, just

0:25:050:25:10

briefly?

As I say, many companies

will look and weigh it up, is it

0:25:100:25:14

worth it? There are networking

advantages to this conference but if

0:25:140:25:18

it looks bad to the customers, is it

worth it?

Interesting. Good to see

0:25:180:25:22

you this morning. Thanks for getting

in touch on Twitter. Keep your

0:25:220:25:30

thoughts coming in as it's always

good to hear from you. Thanks for

0:25:300:25:33

joining us.

0:25:330:25:34

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