18/01/2017

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:00:00. > :00:25.Mark Zuckerberg gets a real grilling in the US courtroom as he defends

:00:26. > :00:26.the origins of Facebook's virtual reality headset.

:00:27. > :00:29.Weighing up the 'wish list' - business leaders give us their take

:00:30. > :00:40.on Theresa May's plans for Brexit, as the pound starts to sink again.

:00:41. > :00:46.Welcome to World Business Report. I'm Sally Bundock.

:00:47. > :00:55.We will be live in Davos in just a moment to speak to the boss of WPP

:00:56. > :00:55.about what Theresa May had to say on Tuesday.

:00:56. > :00:58.Facebook founder Mark Zuckerberg has denied allegations his company's

:00:59. > :01:03.virtual reality unit stole its technology

:01:04. > :01:10.He faced hours of tough questioning in a US court on Tuesday.

:01:11. > :01:12.Our North America Technology Reporter Dave Lee provided more

:01:13. > :01:23.Mark Zuckerberg was on the stand wearing not his typical grey T-shirt

:01:24. > :01:25.but a full suit and tie and while he was there his company Facebook was

:01:26. > :01:33.accused of essentially stealing technology from a firm which works

:01:34. > :01:39.very closely with oculus, that -- Oculus. They say it was their input

:01:40. > :01:43.that may be Oculus headset and early success and presumably why Facebook

:01:44. > :01:49.wanted to buy it. Facebook did by the copy for $2 billion in 2014 and

:01:50. > :01:53.shortly after that ZeniMax filed this lawsuit. Mark Zuckerberg said

:01:54. > :01:56.that was typical when a big deal was made for companies to come out of

:01:57. > :02:01.the woodwork and eventually claim some kind of credit, that he insists

:02:02. > :02:05.that all of the innovation in that headset was done by the Oculus team

:02:06. > :02:07.and that team alone. This trial will last for around three weeks.

:02:08. > :02:10.The defacto boss of Samsung Jay Y Lee has arrived

:02:11. > :02:16.A judge will decide today whether he should be arrested

:02:17. > :02:24.over his alleged role in a major corruption scandal.

:02:25. > :02:28.Kevin Kim joins us from Seoul in South Korea.

:02:29. > :02:41.Tell us more about today. Well, the head of Samsung was seen rising at

:02:42. > :02:47.court with quite a grim face. After a four-hour work here in battle it

:02:48. > :02:53.has just ended, so we may hear the results later this evening.

:02:54. > :03:00.Prosecutors believe Samsung has committed bribery and has asked Jay

:03:01. > :03:04.Y Lee to be jailed. The allegation is that Samsung gave Williams of

:03:05. > :03:07.dollars for the votes of the national pension fund in a big

:03:08. > :03:13.restructuring of the company. -- billions of dollars. Last week Jay Y

:03:14. > :03:17.Lee was summoned as a suspect and questioned for about 24 hours.

:03:18. > :03:25.Investigators said on Monday that despite concern, Jay Y Lee's arrest

:03:26. > :03:28.may have a negative effect on the economy. Establishing justice was

:03:29. > :03:35.more important. Thanks very much, Kevin. I know we will be up dated

:03:36. > :03:37.when we hear from the judge as to whether we should be arrested or

:03:38. > :03:37.not. US regulators claim

:03:38. > :03:41.that the world's biggest producer of mobile phone chips, Qualcomm,

:03:42. > :03:43.forced Apple into an exclusivity The Federal Trade commission

:03:44. > :03:50.is suing Qualcomm for unfair practices in the way it

:03:51. > :03:52.licenses its technology, especially the processors used

:03:53. > :03:55.in cell phones and other devices. The Apple deal is just one case

:03:56. > :03:58.where Qualcomm is accused of abusing its dominant

:03:59. > :04:02.market position. The company has denied

:04:03. > :04:04.the allegations, saying the case One of Donald Trump's closest

:04:05. > :04:08.advisers has told the BBC the US would win

:04:09. > :04:13.a trade war with China. Former Wall Street banker

:04:14. > :04:15.Anthony Scaramucci warned that if China chose to retaliate

:04:16. > :04:18.when the Trump administration imposed tariffs on imports,

:04:19. > :04:20.it would cost them "way more" The comments comes as the Chinese

:04:21. > :04:29.President gave a staunch defence of globalisation at the World

:04:30. > :04:34.Economic Forum, in Davos. Today, for the first time ever,

:04:35. > :04:37.a freight train from China It wasn't intended as

:04:38. > :04:40.a symbolic statement, but with the British Prime Minister

:04:41. > :04:44.confirming the UK must leave the European single market,

:04:45. > :04:47.the train's arrival does illustrate that post-Brexit Britain may need

:04:48. > :04:49.to look further afield Theresa May used her much

:04:50. > :04:53.anticipated speech yesterday to announce the UK's priorities

:04:54. > :04:56.for upcoming Brexit negotiations. Leaving the single market means

:04:57. > :04:59.Britain will lose the right to trade with the European Union

:05:00. > :05:02.without restrictions. Despite this, the UK Prime Minister

:05:03. > :05:05.says the government will negotiate the best possible access

:05:06. > :05:09.to the trading bloc. She has also said Britain will aim

:05:10. > :05:13.for a new a customs union agreement This would allow the UK to form

:05:14. > :05:18.new relationships with non-European trading partners, but it

:05:19. > :05:20.could impose higher costs Many financial firms which use

:05:21. > :05:32.London as its European headquarters have already started

:05:33. > :05:34.looking elsewhere in Europe. The market reaction told another

:05:35. > :05:37.story with the value of the pound rocketing after Theresa May said

:05:38. > :05:40.she would allow Parliament to have a say on any final deal,

:05:41. > :05:43.so investors showing some scepticism that a hard Brexit will get the go

:05:44. > :05:46.ahead of politicians. Let's get the view

:05:47. > :05:51.of Sir Martin Sorrell, chief executive of the world's

:05:52. > :06:01.largest advertising company, WPP. Good morning. Good morning! It is

:06:02. > :06:05.very cold and very early! But you look like you have the best possible

:06:06. > :06:10.gear on to withstand that challenge. Tell me what you think of what

:06:11. > :06:17.Theresa May had to say. Is it a good plan, or are we on a Rex at cliff

:06:18. > :06:21.edge? -- Brexit. She has laid out to 12 point agenda and it is the

:06:22. > :06:27.beginning of the negotiation. I thought it was notable for the

:06:28. > :06:37.detail. But also because of the hard position. We will see how it pans

:06:38. > :06:43.out. I guess I sort of felt she may have laid out the agenda as the

:06:44. > :06:49.first shots in a lawn and what looks as though it will be a very hard and

:06:50. > :06:53.detailed negotiation. The Prime Minister set out her stall a guess

:06:54. > :06:57.in response to critics who said there was very little detail. Now we

:06:58. > :07:00.know much more about the detail and as you pointed out in your

:07:01. > :07:07.preliminary peace we do have a sort of Brexit check through the House of

:07:08. > :07:10.Lords and House of Commons once the details are learnt. I guess that's

:07:11. > :07:18.why the sterling started to strengthen after a week period. As

:07:19. > :07:22.you say she was talking sternly and may have learned from Donald Trump.

:07:23. > :07:28.Donald Tusk says this is a very sad day. As she set out a stall for a

:07:29. > :07:37.bitter divorce? Is that the risk? She has laid out what she feels, the

:07:38. > :07:41.two big issues, immigration and the role or influence of the European

:07:42. > :07:46.Court of Justice. She said on both those points they are unacceptable,

:07:47. > :07:54.from Britain's point of view. But it's a negotiation. 27 member states

:07:55. > :08:03.over two years have to agree to that deal. 20 of the 27 states have to

:08:04. > :08:08.agree. This is going to be a lawn and tough negotiation and, as I

:08:09. > :08:15.said, the Prime Minister has given her position on what will happen

:08:16. > :08:22.when Article 50 is triggered, supposedly in March. Those

:08:23. > :08:27.negotiations will take place. We could end up with a classic European

:08:28. > :08:34.recipe of fudge and not to wish list as it were, but in the meantime how

:08:35. > :08:39.will businesses keep going and meander through, as we have this

:08:40. > :08:44.uncertainty and volatility had a go for us? Well, the uncertainty

:08:45. > :08:49.remains and that's the real problem. I think one of the principles the

:08:50. > :08:52.Prime Minister laid out was an attempt to reduce the attempt. But

:08:53. > :08:58.having said that there is uncertainty. This is as a result of

:08:59. > :09:03.this opening shots in the negotiation will plant for the

:09:04. > :09:13.lowest... The worst position, which would be a WTO solution. And

:09:14. > :09:16.tariffs. Can interrupt you? They will plan for the worst and

:09:17. > :09:21.therefore if things turn out a little bit better, if there is a

:09:22. > :09:25.middle ground between where the EU are and where the Prime Minister and

:09:26. > :09:30.Britain is, things may improve from the lower level, but companies are

:09:31. > :09:35.doing their content in the planning and will be planning on that basis.

:09:36. > :09:45.And eating out of London may be? A hard Rex at as you suggest. --

:09:46. > :09:52.meeting out of London may be? A hard Brexit, as you suggest, and it isn't

:09:53. > :09:56.clear what sort of Brexit check that we will have on a couple of years

:09:57. > :10:02.but we will see that more in due course. People out of London, always

:10:03. > :10:07.a possibility! Always a possibility. Don't give me a hard time for not

:10:08. > :10:12.coming to your studio! It is very cold and very early and very unfair!

:10:13. > :10:16.I wouldn't dream of it! I appreciate you getting out of bed so early from

:10:17. > :10:21.your beautiful hotel in Davos. Go back there and get a hot chocolate.

:10:22. > :10:30.See you soon. That was Sir Martin Sorrell, the

:10:31. > :10:32.boss of WPP. We will be back in a moment to have a look at the papers.