:00:00. > :00:00.Now for the latest financial news with Sally
:00:07. > :00:27.Mexico's economy and foreign Ministers brace for talks with US
:00:28. > :00:30.trade officials as President Trump tells car makers they must build
:00:31. > :00:35.A warning from Lego that more must be done in China to stop
:00:36. > :00:39.counterfeiters as its own master builder struggles to tell a fake
:00:40. > :01:07.Japan enjoying lower or ill prices with a trade surplus for six years.
:01:08. > :01:11.Mexico's Economy Foreign ministers are due to meet top US officials
:01:12. > :01:14.later today as they brace for the renegotiation of NAFTA -
:01:15. > :01:16.the North American Free Trade Agreement.
:01:17. > :01:18.President Trump is pushing to bring more manufacturing jobs back
:01:19. > :01:25.He's already met with the heads of Ford, General Motors
:01:26. > :01:28.and Fiat-Chrysler - telling them they must make more
:01:29. > :01:40.Taking a look at this graph - you can see its exports to the US
:01:41. > :01:43.have surged since Nafta came into force in 1994.
:01:44. > :01:46.Mexico now sells more than $270 billion worth of goods
:01:47. > :01:51.It's thought talks between Mexico and the US will focus on so-called
:01:52. > :01:53.'Rules of Origin' - which limits the proportion
:01:54. > :01:59.of a product which comes from outside North America.
:02:00. > :02:01.If limits were tightened, it could boost manufacturing
:02:02. > :02:06.But can this be achieved in production lines with incredibly
:02:07. > :02:09.complicated supply chains like the car industry?
:02:10. > :02:23.With me is Anna-Marie Baisden, Head of Autos at BMI Research
:02:24. > :02:36.Good morning. Bosses of the three carmakers in talks yesterday and
:02:37. > :02:42.lots of information coming out. Give us your take on how negotiations are
:02:43. > :02:48.going? What we heard was largely to be expected. It was very generic,
:02:49. > :02:52.looking forward to working with the Administration and really we could
:02:53. > :02:56.not expect too much in terms of commitment because they have very
:02:57. > :03:03.little to go on themselves in terms of what these trade policies might
:03:04. > :03:08.be. We have had some change of mind where they talked about keeping jobs
:03:09. > :03:13.in the US and doing less in Texaco for top any us saying it is
:03:14. > :03:19.windowdressing, it is not a big shift in policy. Not at all. It was
:03:20. > :03:26.mostly the timing of the announcement. Most of these were
:03:27. > :03:32.already in the planning of stop it was more a story of not as much
:03:33. > :03:35.demand for these cars. They are still moving production focus to
:03:36. > :03:43.Mexico just not with the extra capacity. These rules of origin is
:03:44. > :03:50.going to be critical. 62% of a car has to be originating from North
:03:51. > :03:57.America. That could be upped to 80% or more. With the car industry, it
:03:58. > :04:04.is difficult to establish with components moving across the border
:04:05. > :04:08.many times. This will be one of the most complex elements. Components
:04:09. > :04:15.will cross the border several times and you also have the US component
:04:16. > :04:22.manufacturers supplying to Mexico which could also get hurt if you
:04:23. > :04:27.start increasing tariffs to and from Mexico. You can see US businesses
:04:28. > :04:36.being heard. How will it play out. President Trump once more jobs in
:04:37. > :04:40.America but it is easier said than done in a critical and complicated
:04:41. > :04:47.industry. These big three carmakers not alone in Goa were either
:04:48. > :04:52.bankrupt or on the brink of it? Absolutely. They were making cars
:04:53. > :04:56.that were not selling very well so you could see a situation where if
:04:57. > :05:02.they are forced to open new plans, they could start edging back to
:05:03. > :05:10.overcapacity. The small cars produced in Mexico are ready in
:05:11. > :05:14.declining sales in America. Do you want them to be producing things
:05:15. > :05:21.that are not selling in. I am sure we will be getting news and tweet
:05:22. > :05:23.from Washington as the day progresses following the talks
:05:24. > :05:26.between Mexico and the US officials. Lego - the Danish-owned toy company
:05:27. > :05:31.has told the BBC that authorities in China need to do more
:05:32. > :05:34.to tackle fake goods - after the man in charge of Lego's
:05:35. > :05:38.huge new factory in China failed to spot a fake piece
:05:39. > :05:44.from the real thing. Lego is currently involved in legal
:05:45. > :05:47.action against one Chinese manufacturer it claims
:05:48. > :05:50.is ripping off its products. Here's our Shanghai
:05:51. > :06:03.Correspondent Robin Brant Billions and billions of these
:06:04. > :06:09.little elastic bricks have been sold the world over and out Lego is
:06:10. > :06:16.betting big on China. What started out with handcart bricks in Denmark
:06:17. > :06:21.in 1949 is now a $100 million state-of-the-art operation near
:06:22. > :06:30.Shanghai but they are not the only ones doing it. Is this Lego? Copies
:06:31. > :06:35.like these and fakes and counterfeit our prolific in China. Lego is
:06:36. > :06:40.currently suing the firm producing this copycat. How is the user to
:06:41. > :06:51.spot the different? We asked the experts.
:06:52. > :06:59.If you have to ask me to guess I would say this one, maybe. Which one
:07:00. > :07:06.do you think is a real? You think this one is real. Correct. The truth
:07:07. > :07:12.is, they look and feel almost identical. So good even the boss of
:07:13. > :07:19.the new factory cannot tell. Have a look at that for me. What do you
:07:20. > :07:31.think of that? It looks like a mini figure to me. What do you think of
:07:32. > :07:42.him? Which one is yours? Have a guess. I would say this is housed
:07:43. > :07:50.and this is not. This is Lego. That is not Lego. It is trying to be
:07:51. > :07:53.Lego. Lego is not the only foreign firm investing big in China but
:07:54. > :08:01.having trouble with local copycats. Land Rover is made here. These
:08:02. > :08:08.assault particularly well but the British firm has been powerless to
:08:09. > :08:13.stop this, cut away, this is similar on the inside and very, very similar
:08:14. > :08:20.on the outside but a lot cheaper. This is the copycat that caught
:08:21. > :08:27.people out. You can buy these on Aly Baba. The twin maker is still
:08:28. > :08:30.pursuing manufacturers in the courts because even the boss cannot tell
:08:31. > :08:41.the difference. I have so many of those in my house
:08:42. > :08:42.and I shall they are all genuine, but who knows!
:08:43. > :08:46.Let's head to Asia - Japan has posted its first annual
:08:47. > :08:47.trade surplus since the Fukushima disaster.
:08:48. > :08:51.Rico Hizon is in Singapore - Rico how did Japan pull it off?
:08:52. > :09:06.The numbers in Japan are surely in January. Surely! That is good news.
:09:07. > :09:10.Yes, and it has been a long way. A combination of soaring exports and
:09:11. > :09:17.lower energy prices and the depreciation of the yen. They fell
:09:18. > :09:22.by nearly 16% due to the falling cost of crude oil and liquefied
:09:23. > :09:32.national gas which left Japan in an almost $36 billion debt. The 2011
:09:33. > :09:37.Fukushima disaster sent the import bill soaring as it turned to pricey
:09:38. > :09:44.fossil fuel alternatives and exports rose in December for the first time
:09:45. > :09:49.in more than a year. This could be a good year once again for the
:09:50. > :09:55.Japanese economy. Let's keep the fingers crossed that this could be
:09:56. > :10:04.sustained. Let's quickly show you markets. Markets across Asia having
:10:05. > :10:14.a real boom. Japan boosted by the news about the trade surplus.
:10:15. > :10:17.MPs have stepped up demands for the government to publish
:10:18. > :10:20.its plan for Brexit in a formal policy document.
:10:21. > :10:23.The demands for a white paper, including from some Conservatives,
:10:24. > :10:25.follow yesterday's Supreme Court ruling.
:10:26. > :10:29.Theresa May must give parliament a vote before triggering Article 50,
:10:30. > :10:31.the formal process for leaving to the EU.
:10:32. > :10:34.It's thought legislation could be introduced as early as tomorrow.
:10:35. > :10:41.Here's our political correspondent Tom Bateman.
:10:42. > :10:50.After the judge is ruled only Parliament could start except, today
:10:51. > :10:56.a warning from MPs not to try to derail the plan. -- Brexit. Article
:10:57. > :11:01.50 is at the start of the process and it must be put before MPs and
:11:02. > :11:05.laws. What lies ahead? The government says the legislation
:11:06. > :11:11.paving the way for Brexit will be tabled within days and voted on by
:11:12. > :11:14.both houses of parliament. Theresa May wants Article 50 triggered by
:11:15. > :11:22.the end of March then Britain has two years to leave the EU. There can
:11:23. > :11:25.be no going back. The point of no return was passed in June of last
:11:26. > :11:31.year. Labour said they will not block Article 50 but one to amend
:11:32. > :11:35.the bill, giving MPs more control. If necessary, there will be
:11:36. > :11:39.hand-to-hand combat. We need to make sure we get the best deal on behalf
:11:40. > :11:45.the country and she cannot say she acts on behalf the country. Theresa
:11:46. > :11:51.May also faces opposition and some of her side. For now, at least
:11:52. > :11:53.ministers believe they are on track to get Brexit triggered by the
:11:54. > :11:53.spring. Coming up at six o'clock
:11:54. > :11:56.on Breakfast - Dan Walker and Louise Minchin will have
:11:57. > :11:59.all the day's news, They'll also have more on a delayed
:12:00. > :12:03.upgrade to the radio system, used by the emergency
:12:04. > :12:05.services in England, Scotland and Wales, that may cost
:12:06. > :12:07.taxpayers ?475 million The top stories this hour: American
:12:08. > :12:26.media say President Trump will sign an order tightening security along
:12:27. > :12:29.the Mexican border on Wednesday. He is also said to be seeking
:12:30. > :12:31.tougher visa regulations for citizens from seven
:12:32. > :12:33.Middle Eastern and African, Mr Trump tweeted that it would be
:12:34. > :12:43.a big day for national security. The Israeli government has approved
:12:44. > :12:46.plans to build 2,500 more homes on occupied Palestinian
:12:47. > :12:48.land in the West Bank. It is the second such announcement
:12:49. > :12:54.since President Trump took office. Palestinian officials say it
:12:55. > :12:56.will fuel extremism and make any Several MPs from the governing
:12:57. > :13:01.Conservative Party have supported calls from the Opposition
:13:02. > :13:03.for the British Government to formally set out its negotiating
:13:04. > :13:06.position on leaving Ministers are preparing to bring
:13:07. > :13:10.forward draft legislation, following a ruling in
:13:11. > :13:13.the Supreme Court on Tuesday that Parliament needs to vote in favour
:13:14. > :13:16.before the Government can trigger The French President,
:13:17. > :13:23.Francois Hollande, has been meeting leaders of Colombia's
:13:24. > :13:25.largest rebel movement, the Farc, at a rural camp
:13:26. > :13:28.in the west of the country. Mr Hollande, accompanied
:13:29. > :13:30.by President Juan Manuel Santos, offered financial support
:13:31. > :13:32.for de-mining programmes The Telegraph leads with yesterday's
:13:33. > :13:57.historic UK Supreme Court ruling. Only through Parliament can there be
:13:58. > :14:00.a vote on whether the Government can The judgement means the Government
:14:01. > :14:10.cannot begin talks with the EU until MPs and peers
:14:11. > :14:14.give their backing. The Guardian says US
:14:15. > :14:20.President Donald Trump has infuriated environmentalists
:14:21. > :14:21.by signing executive orders that support two controversial
:14:22. > :14:26.oil pipelines. The new Republican President
:14:27. > :14:28.backed the Keystone XL The Arab News reports that Israel
:14:29. > :14:32.has approved the construction of 2,500 settler homes
:14:33. > :14:35.in the occupied West Bank. Prime Minister Benjamin Netanyahu
:14:36. > :14:38.said they had agreed to the move The Independent says close to ?8
:14:39. > :14:45.billion was wiped of the market value of BT, after the UK
:14:46. > :14:47.telecommunications giant said accounting errors in its Italian
:14:48. > :14:49.business are far greater The Guardian business pages say
:14:50. > :14:56.Citigroup is deliberating over which new EU financial
:14:57. > :14:58.centre will relocate The banking giant is in discussion
:14:59. > :15:04.with Ireland, France, Italy, Spain, Germany
:15:05. > :15:11.and the Netherlands. Pretty much the whole of the EU, it
:15:12. > :15:18.seems, write? -- right? And finally, hit Hollywood film
:15:19. > :15:22.musical La La Land has scored Only two other films,
:15:23. > :15:25.Titanic and All about Eve, Joining us is Cornelia Meyer,
:15:26. > :15:38.who is CEO of MRL Corporation, Good morning to you. Morning. Have
:15:39. > :15:45.you seen the La La Land? No. I am not a big movie-goer. This whole
:15:46. > :15:49.Brexit thing, and the Supreme Court ruling, apart from what it means for
:15:50. > :15:53.Brexit, it is also very momentous in terms of saying who has real power
:15:54. > :16:00.in the United Kingdom, and Parliament was told you will be able
:16:01. > :16:03.to vote. Yes, but I think the Supreme Court was quite clear they
:16:04. > :16:13.can't overturn the verdict of the people. It is a matter of process.
:16:14. > :16:16.It is Parliament needs to give its blessing to triggering Article 50.
:16:17. > :16:22.So there is another review of Article 50, but it was not a ruling
:16:23. > :16:27.that said, OK, you can now sort of negate the will of the people, who
:16:28. > :16:33.sadly wanted to leave the EU. The issue, though, is about the law,
:16:34. > :16:37.isn't it? The fact that a lot of EU law is law in the country, domestic
:16:38. > :16:41.law. On the point is that ministers cannot change the law that has been
:16:42. > :16:46.approved in the UK Parliament without the approval, without an act
:16:47. > :16:51.of Parliament. So that was the actual issue, wasn't it? It was an
:16:52. > :16:55.eight issue of law. It was an issue of law and process. The government
:16:56. > :17:00.has said they will make the EU laws our own laws and deal with it later
:17:01. > :17:05.on. What I find interesting is how... One of the things is also,
:17:06. > :17:11.they said Parliament should get a say. They said the government didn't
:17:12. > :17:15.have to go to the devolved powers. So they didn't have to go to
:17:16. > :17:21.Scotland and Wales, and so on, to get the go-ahead to trigger Article
:17:22. > :17:27.50. That was very important as well. Here we come to the fallout. We have
:17:28. > :17:32.Nicola Sturgeon from Scotland, Tim Farron from the Lib Dems and Jeremy
:17:33. > :17:36.Corbyn from the Labour Party and how they will be able to potentially
:17:37. > :17:42.affect how the government goes about negotiating Brexit. Because they
:17:43. > :17:46.have their own ideas. They have their own ideas, and it is good we
:17:47. > :17:53.are a democracy and good we are discussing it out, but we had a
:17:54. > :17:57.referendum. And I was a firm remainer, we had a referendum and
:17:58. > :18:03.said leave. We probably have to leave, and it is a bit disconcerting
:18:04. > :18:06.when certain parts say let's have another referendum. Referenda are
:18:07. > :18:11.not things you can do and do until you get what you want. They are not
:18:12. > :18:16.asking for another referendum, but a route to stay in the single market,
:18:17. > :18:20.do you see what I mean? It is how we leave, but the Lib Dems asked for a
:18:21. > :18:25.second referendum. Some of them even asked for a second referendum. Says
:18:26. > :18:29.a lady from Switzerland, where they have referenda every other day! That
:18:30. > :18:33.is a different story. That is part of the problem, because we don't do
:18:34. > :18:38.referenda here so often. That is why we had to go back to the Supreme
:18:39. > :18:43.Court to get a ruling on how do we now deal with a referendum? OK,
:18:44. > :18:46.Donald Trump. Do you want to take this? We know what the story is, the
:18:47. > :18:52.controversial pipelines. Barack Obama didn't want them, Donald Trump
:18:53. > :18:57.wants them, and also coal and that sort of thing. I think those two
:18:58. > :19:03.pipelines I would not be against those two pipelines. Let's not
:19:04. > :19:09.forget, Barack Obama only nixed the Keystone XL pipeline just before the
:19:10. > :19:14.Paris agreement, so he had a better position. What I am worried about
:19:15. > :19:17.is, some of the things he wants to do may not necessarily be bad
:19:18. > :19:22.things, but the way he goes about it, the way he rams everything
:19:23. > :19:26.through, I have one, and now I can do whatever I want. I am very
:19:27. > :19:32.fearful of a huge backlash against the oil industry and against other
:19:33. > :19:38.energy industries, you know, in the next three to four years, because it
:19:39. > :19:41.is just round down. When you swing the pendulum too much to one side,
:19:42. > :19:47.it usually swings back quite violently. That sort of where I
:19:48. > :19:52.would stand on this. Arab News. Israel approves 2500 new settlement
:19:53. > :19:55.homes in the occupied West Bank. That is their headline, talking
:19:56. > :20:00.about the announcement from Benjamin Netanyahu yesterday. Give us your
:20:01. > :20:04.take on this. It is to do with President Trump. It is to do with
:20:05. > :20:08.President Trump, who is clearly one of the most pro- Israel presidents
:20:09. > :20:13.there ever were. Two of his advisers, his son-in-law and Steve
:20:14. > :20:19.Bannon, are very much pro- Israel, pro- settlement. It is also, as your
:20:20. > :20:23.correspondent said, to do with internal politics in Israel. What it
:20:24. > :20:27.means, it is very bad for everybody who believes in a two state
:20:28. > :20:32.solution, this is very bad for a two state solution. Because it infringes
:20:33. > :20:39.on what is Palestinian territory. And the question is, how do you get
:20:40. > :20:43.to a lasting peace? Most people see a two state solution, including the
:20:44. > :20:47.Secretary General of the UN, C at two state solution as the way to get
:20:48. > :20:54.there. And if that is the objective, this is very bad news. A couple of
:20:55. > :20:59.days before this BT wiping off a brilliant pounds of its share value,
:21:00. > :21:05.I heard that BT broadband's prices are going up. As a BT customer I
:21:06. > :21:10.thought, well, that is the market, but I wonder if it knew it was about
:21:11. > :21:15.to become public? Probably not, but what this shows is that you really
:21:16. > :21:19.need to have, as a company, you need to get your account is clear. And
:21:20. > :21:22.when you have bad news you need to make sure you understand that the
:21:23. > :21:28.bad news is, and you communicated immediately to the market. Because
:21:29. > :21:31.this drip, drip, and then we were wrong, that totally goes against
:21:32. > :21:37.investor confidence. And having 20%... It was a shocking
:21:38. > :21:42.announcement, and the market reacted accordingly. 20% of the market
:21:43. > :21:48.value. And it was, because they first said it was 145 million, and
:21:49. > :21:54.then it was sort of four times more. So I think that is... That shows
:21:55. > :21:57.that when you have bad news, it is very important that you first get
:21:58. > :22:07.your together, and that you communicate effectively. Shall we
:22:08. > :22:13.move on to... You want to look at films? We have to talk about
:22:14. > :22:17.Citigroup, and then the Oscar nominations. Quickly on Citigroup,
:22:18. > :22:28.it will be very interesting to see how Citigroup and other banks,
:22:29. > :22:35.fearful of the passporting rights within the EU, my favourite is
:22:36. > :22:39.Dublin. The Frankfurt people think Frank that is so good but the
:22:40. > :22:41.trouble with Frankfurt and Paris is that the Labour laws are so
:22:42. > :22:46.difficult. Once you have hired someone it is very hard to fire them
:22:47. > :22:50.again and if you have a trading room you need to be able to immediately
:22:51. > :22:52.hire our lot of people and then immediately let go of them.
:22:53. > :22:58.Financial markets are fickle, and your headcount has to reflect that.
:22:59. > :23:04.So Dublin is probably the easiest to do those sorts of things. Do you
:23:05. > :23:11.like musicals? Yes, I do like musicals. Did you ever see Titanic?
:23:12. > :23:19.I did when it came to the small screen. And La La Land has equalled
:23:20. > :23:25.the number of nominations of Titanic and All About Eve. I did enjoy it,
:23:26. > :23:28.but because it has had so much publicity and has all these awards,
:23:29. > :23:33.I expected to be completely wowed, and I wasn't. At as you said, when
:23:34. > :23:37.we had a quick chat before, Hollywood loves Hollywood. It is
:23:38. > :23:42.about Hollywood, so of course they love it. Thank you very much indeed.
:23:43. > :23:45.The film I would choose to take you to is Predator versus Aliens on a
:23:46. > :23:54.massive screen. See you soon. Wednesday will start quite windy
:23:55. > :23:59.across northern and western parts