18/01/2017 World Business Report


18/01/2017

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Mark Zuckerberg gets a real grilling in the US courtroom as he defends

:00:00.:00:25.

the origins of Facebook's virtual reality headset.

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Weighing up the 'wish list' - business leaders give us their take

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on Theresa May's plans for Brexit, as the pound starts to sink again.

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Welcome to World Business Report. I'm Sally Bundock.

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We will be live in Davos in just a moment to speak to the boss of WPP

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about what Theresa May had to say on Tuesday.

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Facebook founder Mark Zuckerberg has denied allegations his company's

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virtual reality unit stole its technology

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He faced hours of tough questioning in a US court on Tuesday.

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Our North America Technology Reporter Dave Lee provided more

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Mark Zuckerberg was on the stand wearing not his typical grey T-shirt

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but a full suit and tie and while he was there his company Facebook was

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accused of essentially stealing technology from a firm which works

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very closely with oculus, that -- Oculus. They say it was their input

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that may be Oculus headset and early success and presumably why Facebook

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wanted to buy it. Facebook did by the copy for $2 billion in 2014 and

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shortly after that ZeniMax filed this lawsuit. Mark Zuckerberg said

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that was typical when a big deal was made for companies to come out of

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the woodwork and eventually claim some kind of credit, that he insists

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that all of the innovation in that headset was done by the Oculus team

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and that team alone. This trial will last for around three weeks.

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The defacto boss of Samsung Jay Y Lee has arrived

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A judge will decide today whether he should be arrested

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over his alleged role in a major corruption scandal.

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Kevin Kim joins us from Seoul in South Korea.

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Tell us more about today. Well, the head of Samsung was seen rising at

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court with quite a grim face. After a four-hour work here in battle it

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has just ended, so we may hear the results later this evening.

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Prosecutors believe Samsung has committed bribery and has asked Jay

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Y Lee to be jailed. The allegation is that Samsung gave Williams of

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dollars for the votes of the national pension fund in a big

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restructuring of the company. -- billions of dollars. Last week Jay Y

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Lee was summoned as a suspect and questioned for about 24 hours.

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Investigators said on Monday that despite concern, Jay Y Lee's arrest

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may have a negative effect on the economy. Establishing justice was

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more important. Thanks very much, Kevin. I know we will be up dated

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when we hear from the judge as to whether we should be arrested or

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not. US regulators claim

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that the world's biggest producer of mobile phone chips, Qualcomm,

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forced Apple into an exclusivity The Federal Trade commission

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is suing Qualcomm for unfair practices in the way it

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licenses its technology, especially the processors used

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in cell phones and other devices. The Apple deal is just one case

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where Qualcomm is accused of abusing its dominant

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market position. The company has denied

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the allegations, saying the case One of Donald Trump's closest

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advisers has told the BBC the US would win

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a trade war with China. Former Wall Street banker

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Anthony Scaramucci warned that if China chose to retaliate

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when the Trump administration imposed tariffs on imports,

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it would cost them "way more" The comments comes as the Chinese

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President gave a staunch defence of globalisation at the World

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Economic Forum, in Davos. Today, for the first time ever,

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a freight train from China It wasn't intended as

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a symbolic statement, but with the British Prime Minister

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confirming the UK must leave the European single market,

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the train's arrival does illustrate that post-Brexit Britain may need

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to look further afield Theresa May used her much

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anticipated speech yesterday to announce the UK's priorities

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for upcoming Brexit negotiations. Leaving the single market means

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Britain will lose the right to trade with the European Union

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without restrictions. Despite this, the UK Prime Minister

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says the government will negotiate the best possible access

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to the trading bloc. She has also said Britain will aim

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for a new a customs union agreement This would allow the UK to form

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new relationships with non-European trading partners, but it

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could impose higher costs Many financial firms which use

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London as its European headquarters have already started

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looking elsewhere in Europe. The market reaction told another

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story with the value of the pound rocketing after Theresa May said

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she would allow Parliament to have a say on any final deal,

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so investors showing some scepticism that a hard Brexit will get the go

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ahead of politicians. Let's get the view

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of Sir Martin Sorrell, chief executive of the world's

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largest advertising company, WPP. Good morning. Good morning! It is

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very cold and very early! But you look like you have the best possible

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gear on to withstand that challenge. Tell me what you think of what

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Theresa May had to say. Is it a good plan, or are we on a Rex at cliff

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edge? -- Brexit. She has laid out to 12 point agenda and it is the

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beginning of the negotiation. I thought it was notable for the

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detail. But also because of the hard position. We will see how it pans

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out. I guess I sort of felt she may have laid out the agenda as the

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first shots in a lawn and what looks as though it will be a very hard and

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detailed negotiation. The Prime Minister set out her stall a guess

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in response to critics who said there was very little detail. Now we

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know much more about the detail and as you pointed out in your

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preliminary peace we do have a sort of Brexit check through the House of

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Lords and House of Commons once the details are learnt. I guess that's

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why the sterling started to strengthen after a week period. As

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you say she was talking sternly and may have learned from Donald Trump.

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Donald Tusk says this is a very sad day. As she set out a stall for a

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bitter divorce? Is that the risk? She has laid out what she feels, the

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two big issues, immigration and the role or influence of the European

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Court of Justice. She said on both those points they are unacceptable,

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from Britain's point of view. But it's a negotiation. 27 member states

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over two years have to agree to that deal. 20 of the 27 states have to

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agree. This is going to be a lawn and tough negotiation and, as I

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said, the Prime Minister has given her position on what will happen

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when Article 50 is triggered, supposedly in March. Those

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negotiations will take place. We could end up with a classic European

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recipe of fudge and not to wish list as it were, but in the meantime how

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will businesses keep going and meander through, as we have this

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uncertainty and volatility had a go for us? Well, the uncertainty

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remains and that's the real problem. I think one of the principles the

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Prime Minister laid out was an attempt to reduce the attempt. But

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having said that there is uncertainty. This is as a result of

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this opening shots in the negotiation will plant for the

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lowest... The worst position, which would be a WTO solution. And

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tariffs. Can interrupt you? They will plan for the worst and

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therefore if things turn out a little bit better, if there is a

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middle ground between where the EU are and where the Prime Minister and

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Britain is, things may improve from the lower level, but companies are

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doing their content in the planning and will be planning on that basis.

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And eating out of London may be? A hard Rex at as you suggest. --

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meeting out of London may be? A hard Brexit, as you suggest, and it isn't

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clear what sort of Brexit check that we will have on a couple of years

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but we will see that more in due course. People out of London, always

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a possibility! Always a possibility. Don't give me a hard time for not

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coming to your studio! It is very cold and very early and very unfair!

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I wouldn't dream of it! I appreciate you getting out of bed so early from

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your beautiful hotel in Davos. Go back there and get a hot chocolate.

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See you soon. That was Sir Martin Sorrell, the

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boss of WPP. We will be back in a moment to have a look at the papers.

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