18/01/2017 World Business Report

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

the origins of Facebook's virtual reality headset.

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

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

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

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

about what Theresa May had to say on Tuesday.

Facebook founder Mark Zuckerberg has denied allegations his company's

virtual reality unit stole its technology

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

Our North America Technology Reporter Dave Lee provided more

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

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

accused of essentially stealing technology from a firm which works

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

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

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

shortly after that ZeniMax filed this lawsuit. Mark Zuckerberg said

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

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

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

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

The defacto boss of Samsung Jay Y Lee has arrived

A judge will decide today whether he should be arrested

over his alleged role in a major corruption scandal.

Kevin Kim joins us from Seoul in South Korea.

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

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

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

Prosecutors believe Samsung has committed bribery and has asked Jay

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

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

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

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

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

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

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

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

not. US regulators claim

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

forced Apple into an exclusivity The Federal Trade commission

is suing Qualcomm for unfair practices in the way it

licenses its technology, especially the processors used

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

where Qualcomm is accused of abusing its dominant

market position. The company has denied

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

advisers has told the BBC the US would win

a trade war with China. Former Wall Street banker

Anthony Scaramucci warned that if China chose to retaliate

when the Trump administration imposed tariffs on imports,

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

President gave a staunch defence of globalisation at the World

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

a freight train from China It wasn't intended as

a symbolic statement, but with the British Prime Minister

confirming the UK must leave the European single market,

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

to look further afield Theresa May used her much

anticipated speech yesterday to announce the UK's priorities

for upcoming Brexit negotiations. Leaving the single market means

Britain will lose the right to trade with the European Union

without restrictions. Despite this, the UK Prime Minister

says the government will negotiate the best possible access

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

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

new relationships with non-European trading partners, but it

could impose higher costs Many financial firms which use

London as its European headquarters have already started

looking elsewhere in Europe. The market reaction told another

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

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

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

ahead of politicians. Let's get the view

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

when Article 50 is triggered, supposedly in March. Those

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

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

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

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

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

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

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

this opening shots in the negotiation will plant for the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

See you soon. That was Sir Martin Sorrell, the

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