14/11/2017 Business Briefing


14/11/2017

The latest economic and financial news, market updates and interviews with the key news-makers in the business world.


Similar Content

Browse content similar to 14/11/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Briefing,

I'm Sally Bundock.

0:00:180:00:19

The Art of the Deal.

0:00:190:00:21

Trump's team says the US has struck

$300 billion worth of trade

0:00:210:00:24

and investment deals

during his Asian trip.

0:00:240:00:26

We investigate.

0:00:260:00:33

And President Trump's determination

to slash regulations for US business

0:00:330:00:36

is alarming many who worry

about pollution and public health.

0:00:360:00:39

And on the markets in Asia today,

shares fluctuate, a day

0:00:390:00:42

after Japan's main market

saw its biggest drop since April.

0:00:430:00:57

Five countries, nearly

two weeks, and billions

0:01:080:01:09

of dollars in deal-making.

0:01:090:01:10

Well, that is the line

from the White House and host

0:01:110:01:13

nations, as President Trump's

mammoth tour of Asia draws

0:01:140:01:16

to a close.

0:01:160:01:23

After all, the President

is known to be a deal-maker.

0:01:230:01:26

So much so, in fact,

that he has promised a major

0:01:260:01:28

statement on trade before

he arrives back in Washington.

0:01:290:01:31

That means the clock is ticking.

0:01:310:01:33

The White House is touting

the rather whopping figure of $300

0:01:330:01:36

billion in deals during

the President's swing

0:01:360:01:37

through the region.

0:01:380:01:38

The lion's share of that came

during his trip to China.

0:01:380:01:41

South Korea, Japan, and Vietnam make

up the remaining $50 billion-odd.

0:01:410:01:44

Mr Trump is still in

the Philippines, so we will hold off

0:01:440:01:48

on that figure.

0:01:480:01:48

But this is business,

and you have to pay attention

0:01:480:01:51

to the fine print.

0:01:510:01:52

So dig a little deeper,

and you will see that some of these

0:01:520:01:56

are memoranda of understanding,

MoUs, so more promises of agreements

0:01:560:01:58

to come, or they are deals that had

already been in the works for months

0:01:580:02:03

or even years.

0:02:030:02:10

All will need official approval.

0:02:100:02:12

With me is Professor Rajneesh

Narula, the John H Dunning chair

0:02:120:02:15

of international business

at Henley Business School.

0:02:150:02:21

What is your interpretation of the

deals done?

Well, I think it is

0:02:210:02:27

public relations, really. These

deals were going to happen anyway,

0:02:270:02:32

and Trump's trip is just a bit of

icing on the cake, just to show that

0:02:320:02:37

he has done something. About $50

billion of the Chinese deal comes

0:02:370:02:41

from aircraft, from Boeing aircraft.

Another $40 billion is helicopters,

0:02:410:02:47

and that sort of thing. So these

things were going to go on anyway,

0:02:470:02:52

and there are short-term victories,

which is what Trump seems to

0:02:520:02:56

specialise in. There isn't anything

that is really long-term. There is a

0:02:560:03:00

big investment by JD, I think, in a

beef factory in Montana, but apart

0:03:000:03:09

from that, I don't think there is

much that wouldn't have happened

0:03:090:03:12

anyway.

In terms of trade between

the US and countries in that part of

0:03:120:03:18

the world, what was achieved from

that point of view? Of course, the

0:03:180:03:21

United States removed itself from

the transpacific partnership. Talk

0:03:210:03:24

us through the trade deals from that

point of view.

That is the big news

0:03:240:03:30

from the trip. Trump's thunder was

stolen, as it were, by Trudeau, who

0:03:300:03:34

announced that they were going to

more or less edge on with the

0:03:340:03:39

transpacific partnership, rebranded

as a copper offensive and

0:03:390:03:45

progressive... It is in the title,

actually, those words --

0:03:450:03:51

comprehensive and progressive. They

will sign it by the new year.

So the

0:03:510:03:55

US is missing out on that. During

his speeches, I remember his speech

0:03:550:04:00

in Beijing, he was talking about the

fact that we will look after

0:04:000:04:04

ourselves, we expect you to look

after yourselves, but we want to

0:04:040:04:09

talk bilateral trade. And he has

talked a lot about the Indo Pacific.

0:04:090:04:13

He is pivoting towards India, trying

to reduce China's influence.

Yes,

0:04:130:04:18

the thing is, bilateral agreements

are a relic from the 1970s and

0:04:180:04:24

1980s. Ever since we have had the

WTO, the big focus has been on

0:04:240:04:29

making trade similar for large

groups of trade simpler for large

0:04:290:04:34

groups of countries. Trump is trying

to destroy Nafta. He seems to have

0:04:340:04:42

something against multilateral

agreements, but that is the way it

0:04:420:04:44

of the future. Even China has its

own One Belt, One Road programme,

0:04:440:04:54

saying we are the ones who are the

staple superpower and want to play

0:04:540:04:58

with everyone. And they make Trump

look bad.

0:04:580:05:01

The Chinese economy is starting

to cool, and a slew of economic data

0:05:010:05:05

out earlier today confirms it.

0:05:050:05:06

Sharanjit Leyl has been

crunching the numbers.

0:05:060:05:18

Quite a few numbers to crunch,

actually, because industrial output

0:05:180:05:24

growing slower than expected, 6.2%

in October according to the National

0:05:240:05:30

bureau of statistics. Retail sales

was also out and claimed a slower

0:05:300:05:34

than expected 10% in October from

last year. I hear you say that is a

0:05:340:05:39

fairly decent number, but what is

interesting is, of course, in

0:05:390:05:42

industrial output the slowdown is

prompted by slowing property and

0:05:420:05:46

construction activity, and that is

two of the main growth drivers hit

0:05:460:05:52

by borrowing costs as well as

government measures to try and cool

0:05:520:05:55

a heated housing market and curb

industrial pollution, a massive

0:05:550:05:59

problem in China's major cities.

After this data we saw Chinese

0:05:590:06:03

stocks which had been at the two

year high, they actually retreated

0:06:030:06:07

from that two year high, following

the date. We saw a broader measure

0:06:070:06:12

money supply unveiled yesterday

after closed -- following that data.

0:06:120:06:19

All of this is starting to suggest

that China's economy is slowing

0:06:190:06:24

because of these measures the

government have put in place, though

0:06:240:06:28

nonetheless they are still targeting

annual economic growth of around

0:06:280:06:31

6.5% this year. Thank you for that

summary, in Singapore.

0:06:310:06:38

President Trump's pick

for head of chemical safety,

0:06:380:06:40

Dr Michael Dourson, has spent much

of his career helping businesses

0:06:400:06:43

fight red tape on the use

of potentially toxic compounds

0:06:430:06:46

in everyday goods.

0:06:460:06:47

The town of Hoosick Falls in upstate

New York has seen its water supply

0:06:470:06:51

contaminated with chemicals,

and people living there

0:06:510:06:53

are concerned at the prospect

of Dr Dourson taking up the role.

0:06:530:06:56

Michelle Fleury has the story.

0:06:560:07:00

This water looks safe to drink. But,

until recently, it wasn't. Emily and

0:07:010:07:07

her daughter Gwen have an incredibly

high level of total of the No Loc

0:07:070:07:14

acid, -- perfluoro acid.

There were

no words for how I felt as a mother

0:07:140:07:28

and a person, I felt violated.

Emily

moved her family away from a

0:07:280:07:33

chemical plant near her old home

that cause the contamination.

I get

0:07:330:07:37

that worse things happen around the

world, but never in a million years

0:07:370:07:40

did I think that living in the

United States of America I would

0:07:400:07:44

have to go to a dark, cold, dingy

basement to pick up water for my

0:07:440:07:48

family.

Hoosick Falls is a small

town on the border of New York and

0:07:480:07:53

Vermont. For decades the region was

home to plastic factories that used

0:07:530:07:59

perfluorononanoic acid. It wasn't

until 2016 that the local water

0:07:590:08:03

supplies received filtration

systems. And the fight for clean

0:08:030:08:07

water continues all the way to

Washington, where some Hoosick Falls

0:08:070:08:10

residents travelled to make clear

their objection to the nomination of

0:08:100:08:14

Michael Dourson, Donald Trump's pick

to become the country's top chemical

0:08:140:08:19

regulator. Michael Hickey began the

fight to test Hoosick Falls's water

0:08:190:08:27

for chemicals after his father died

of kidney cancer. He made the trip

0:08:270:08:31

to Washington recently to speak out

against Michael Dourson's

0:08:310:08:35

nomination.

The is the guy that big

companies will bring in to defend

0:08:350:08:40

them. He is not working for people.

He is working for big business.

In

0:08:400:08:45

the past, Michael Dourson has

advocated for chemical safety levels

0:08:450:08:51

much higher than is now considered

acceptable, at his nomination shows

0:08:510:08:56

a pattern emerging under the Trump

administration.

What we are broadly

0:08:560:09:00

seeing happen across the Federal

Government is that the formerly

0:09:000:09:04

regulated parties are becoming the

regulators themselves.

The agency

0:09:040:09:08

where Dourson will serve as

prioritising reducing what the

0:09:080:09:14

President Coles job killing

regulations. In Hoosick Falls, Emily

0:09:140:09:17

is considering the cost of that as

she looks for assurances that the

0:09:170:09:22

water in her home is safe for her

family.

0:09:220:09:26

Now let's brief you some other

business stories: A judge in Brazil

0:09:260:09:29

has ordered a homicide lawsuit

against the executives of mining

0:09:290:09:32

company Samarco to resume.

0:09:320:09:33

21 people who worked for the company

are accused of being responsible

0:09:330:09:36

for the collapse of a dam, in 2015,

that led to the deaths of 19 people.

0:09:360:09:49

Shares of Barbie toymaker Mattel

have jumped by 20% on reports rival

0:09:490:09:52

toy giant Hasbro is

considering a takeover.

0:09:520:09:54

Hasbro, whose brands include

Play-Doh and My Little Pony,

0:09:540:09:56

are also higher.

0:09:560:09:57

Last month shares in both companies

fell, after a warning

0:09:570:10:00

that the bankruptcy of retailer

Toys"R"Us could hurt sales.

0:10:000:10:07

Goldman Sachs has written down

to zero the value of its stake

0:10:080:10:11

in the Weinstein Company.

0:10:110:10:12

The move comes as the Weinstein

Company looks for fresh financing,

0:10:120:10:15

after more than 50 women claimed

that ex-chairman Harvey Weinstein

0:10:150:10:17

sexually harassed or assaulted them

over the past three decades.

0:10:180:10:20

Weinstein has denied having

non-consensual sex with anyone.

0:10:200:10:22

And now, what is trending

in the business news this morning?

0:10:220:10:47

The markets ending with US shares...

We haven't got it here, but the Dow

0:10:470:10:52

up slightly at the close on Monday.

The news briefing is here in a

0:10:520:10:56

moment.

0:10:560:11:18