24/01/2017 World Business Report


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24/01/2017

The latest business news with informed analysis from the world's financial centres.


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with sally and World Business Report.

:00:00.:00:13.

What now for the countries in the Trans-Pacific Partnership

:00:14.:00:20.

as President Trump signs an executive order to withdraw

:00:21.:00:22.

Samsung's microchip business powers the company to a jump in profits

:00:23.:00:32.

If you have no food to hand we'll make it worse

:00:33.:00:51.

as we'll take you to a true Indian feast.

:00:52.:00:53.

I am told there is a business angle! But we can't start without talking

:00:54.:01:04.

about this. I'm talking about US

:01:05.:01:07.

President Trump. On day one in office he signed

:01:08.:01:14.

a slew of executive orders but the one grabbing

:01:15.:01:17.

all the headlines worldwide is his move to withdraw the US

:01:18.:01:19.

from the Trans-Pacific Partnership. TPP as it's also known is the huge

:01:20.:01:22.

trade deal negotiated under Mr Trump's

:01:23.:01:25.

predesessor Barack Obama. It was a deal between 12

:01:26.:01:27.

nations in the Pacific area and was set to cover 40%

:01:28.:01:30.

of the world's economic output. The painstaking negotiations

:01:31.:01:33.

were led by Obama and took seven It was generally seen as a way

:01:34.:01:36.

to cement relations in the area Significantly China was not part

:01:37.:01:42.

of the negotiations. The 12 countries signed up to TPP

:01:43.:01:48.

in February of last year ratified by the Republican held US

:01:49.:01:52.

Congress. President Trump now wants

:01:53.:02:01.

to negotiate trade deals on a country-to-country basis

:02:02.:02:03.

with a 30 day cancellation clause We've been talking about this for a

:02:04.:02:06.

long time. Thank you. Great thing for the American worker,

:02:07.:02:28.

what we just did. There you have it! That was the

:02:29.:02:39.

moment. With me is Kate Andrews

:02:40.:02:42.

from the News Editor of the Institute

:02:43.:02:45.

of Economic Affairs. Good morning. The delivered on that

:02:46.:02:54.

promise, he has done the deed, what now for TPP? Interesting to get

:02:55.:02:59.

reaction from leaders of the countries within the 12 countries,

:03:00.:03:03.

Australia saying they can go ahead without the US. Technically it can,

:03:04.:03:08.

if six of them want to go ahead with it and make up 85% of the combined

:03:09.:03:13.

GDP that was meant to be there than they can go ahead, which basically

:03:14.:03:17.

means Japan has to go along with it, which is why we're seeing Australia

:03:18.:03:21.

and Japan in negotiations right now. It's possible they might push for it

:03:22.:03:26.

but losing out on the US customer base, the 3 million Americans that

:03:27.:03:32.

would have been importing a lot and consuming those cheaper products,

:03:33.:03:35.

that will make it a struggle. Do we need TPP? You can have you in a

:03:36.:03:39.

relaxed and oral trade deals that can be hugely beneficial --

:03:40.:03:44.

unilateral. That's look at how long they take. The idea that Trump will

:03:45.:03:48.

get a trade deal with the UK within weeks isn't feasible, they can take

:03:49.:03:54.

years. Obama negotiated TPP for seven years, conversations started

:03:55.:03:58.

in the mid- 2000s so these things take time. It would be fantastic to

:03:59.:04:02.

have trade deals with Australia or Japan but it won't come back soon

:04:03.:04:07.

and in the meantime we will miss out on the economic boom. Presumably the

:04:08.:04:11.

leadership in China are upping their hands, they weren't a part of this

:04:12.:04:15.

particular trade deal and they're starting their own version with

:04:16.:04:20.

these countries -- rubbing. What does that mean for the winners and

:04:21.:04:24.

the losers? The real loser maybe the US. With TPP, the US was Luke Dyer

:04:25.:04:30.

macro hooking to create a single market within Asia and exclude China

:04:31.:04:39.

-- was looking to. If Donald Trump is really interested in keeping

:04:40.:04:42.

manufacturing jobs in the US and keeping that money in the US then he

:04:43.:04:46.

should do what he's already planning on doing, lowering corporation tax

:04:47.:04:49.

significantly, giving American businesses an incentive to stay but

:04:50.:04:54.

cracking down on this trade deal will hurt American consumers and

:04:55.:04:57.

will give China the footing it already has too built itself up

:04:58.:05:01.

more. Kate Andrews, we appreciate your time. -- has two build. More on

:05:02.:05:12.

that very soon. Cash has two build. -- has to build.

:05:13.:05:14.

It would seem its electronics division is doing well and boosting

:05:15.:05:18.

the groups bottom line, some welcome good news

:05:19.:05:20.

from the Korean tech giant after such a turbulent year.

:05:21.:05:23.

Profits in the fourth quarter jumped to $7.8 billion.

:05:24.:05:25.

Rico Hizon is in our Asia Business Hub in Singapore.

:05:26.:05:28.

So nice to see you. With all the news we have had out of Samsung, all

:05:29.:05:34.

the bad press, this might come as a pleasant surprise. That's right. Not

:05:35.:05:40.

many were bullish on Samsung Electronics after a very challenging

:05:41.:05:47.

2016. But the Korean technology giant has surprised us despite the

:05:48.:05:52.

tough year they have had, they remained profitable. In the

:05:53.:05:55.

fourth-quarter profits more than doubled from a year earlier, mainly

:05:56.:06:00.

thanks to its chipmaking and panel display businesses. The

:06:01.:06:03.

semiconductor unit contributed more than half of the company's quarterly

:06:04.:06:09.

operating profit and despite the problems it faced in restoring

:06:10.:06:12.

consumer trust in the absence of the galaxy notes smart phones because of

:06:13.:06:18.

its exploding batteries, consumers still snapped up Samsung smart

:06:19.:06:24.

phones like the Galaxy F7 and the Edge and other cheaper galaxy smart

:06:25.:06:29.

phones and that helped Samsung's mobile business rebound from the

:06:30.:06:34.

previous quarter when the Note 7 to bark wiped out basically its mobile

:06:35.:06:38.

phone profits. Going forward they still expect to be profitable in

:06:39.:06:44.

2017, but the company is trying to manage expectations, saying they

:06:45.:06:49.

have other issues to worry about, including a corruption probe

:06:50.:06:52.

involving South Korean President Park. Let's see how this plays out

:06:53.:06:57.

and if it will indeed impact its bottom line. We will keep a close

:06:58.:07:01.

eye and good to have you back, Mr he's on! -- Mr Rico Hizon!

:07:02.:07:05.

India is known the world over for its cuisine.

:07:06.:07:08.

But keeping customers at home happy hasn't been easy.

:07:09.:07:14.

Restaurant owners serving traditional Indian food have been

:07:15.:07:16.

struggling to woo young customers in particular,

:07:17.:07:18.

and so some are trying more dramatic culinary experiences.

:07:19.:07:20.

It's not about curries and kebabs any more. Indian food is getting a

:07:21.:07:48.

makeover. This is a deep-fried fritter that is soaked in sticky

:07:49.:07:53.

sugar syrup. It's a popular Indian Swede found on most street corners

:07:54.:07:58.

but with a little help from science and a lot of creativity, this is

:07:59.:08:01.

what it's been turned into. Tiny beads of caviar topped with a

:08:02.:08:07.

saffron foam. It looks kind of cool and it tastes just as good. And

:08:08.:08:13.

chefs are hoping with this modern take they can attract young people

:08:14.:08:21.

back to Indian food. This entrepreneur is hoping his next

:08:22.:08:25.

restaurant launch is as blessed as his previous. His father is a

:08:26.:08:32.

well-known Indian chef and he wants to carry on his father's legacy but

:08:33.:08:38.

with a modern twist. The days of old food are gone. We maintain the core

:08:39.:08:43.

and the authenticity and we don't mess around with the flavours, but

:08:44.:08:48.

we produce a very modern version of the same dish. If you want to take

:08:49.:08:52.

any cuisine global then you have to do that. It's not just molecular

:08:53.:08:57.

food. Chefs are taking traditional cuisine out of sitdown restaurants

:08:58.:09:02.

to the places young people hang out. He's one of the first chefs to put

:09:03.:09:07.

Indian delicacies in bars and pubs. We wanted it to be a gastro pub with

:09:08.:09:12.

our own definition because we didn't really want to ride on what existed

:09:13.:09:16.

in England, which is essentially where the word came from. It has the

:09:17.:09:26.

tendency of being more formal and clean and straight lines and white

:09:27.:09:29.

tablecloths. It was putting the spin and the fun back into the product,

:09:30.:09:33.

into a pub space but also focus on food and being unabashedly Indian.

:09:34.:09:37.

For Indian entrepreneurs, getting young Indians on board is crucial to

:09:38.:09:42.

taking the new-age food global. But with a host of global cuisine is

:09:43.:09:47.

available and popular here at very affordable prices, they're not only

:09:48.:09:50.

competing with traditional Indian fare. So while tricks with the food

:09:51.:09:57.

might get customers early on, it could be tough to get them coming

:09:58.:10:00.

back. Aziz, BBC News, Delhi. That's it, we want to go and find

:10:01.:10:04.

some food! -- Shilpa Kannan. Flooding has caused billions

:10:05.:10:16.

of pounds of damage and ruined thousands of homes in the UK

:10:17.:10:19.

in the last few year but the government isn't doing

:10:20.:10:22.

enough to tackle them. That's according to MPs

:10:23.:10:24.

who criticised a lack of action two

:10:25.:10:28.