25/01/2017 World Business Report

Now for the latest financial news with Sally

Mexico's economy and foreign Ministers brace for talks with US

trade officials as President Trump tells car makers they must build

A warning from Lego that more must be done in China to stop

counterfeiters as its own master builder struggles to tell a fake

Japan enjoying lower or ill prices with a trade surplus for six years.

Mexico's Economy Foreign ministers are due to meet top US officials

later today as they brace for the renegotiation of NAFTA -

the North American Free Trade Agreement.

President Trump is pushing to bring more manufacturing jobs back

He's already met with the heads of Ford, General Motors

and Fiat-Chrysler - telling them they must make more

Taking a look at this graph - you can see its exports to the US

have surged since Nafta came into force in 1994.

Mexico now sells more than $270 billion worth of goods

It's thought talks between Mexico and the US will focus on so-called

'Rules of Origin' - which limits the proportion

of a product which comes from outside North America.

If limits were tightened, it could boost manufacturing

But can this be achieved in production lines with incredibly

complicated supply chains like the car industry?

With me is Anna-Marie Baisden, Head of Autos at BMI Research

Good morning. Bosses of the three carmakers in talks yesterday and

lots of information coming out. Give us your take on how negotiations are

going? What we heard was largely to be expected. It was very generic,

looking forward to working with the Administration and really we could

not expect too much in terms of commitment because they have very

little to go on themselves in terms of what these trade policies might

be. We have had some change of mind where they talked about keeping jobs

in the US and doing less in Texaco for top any us saying it is

windowdressing, it is not a big shift in policy. Not at all. It was

mostly the timing of the announcement. Most of these were

already in the planning of stop it was more a story of not as much

demand for these cars. They are still moving production focus to

Mexico just not with the extra capacity. These rules of origin is

going to be critical. 62% of a car has to be originating from North

America. That could be upped to 80% or more. With the car industry, it

is difficult to establish with components moving across the border

many times. This will be one of the most complex elements. Components

will cross the border several times and you also have the US component

manufacturers supplying to Mexico which could also get hurt if you

start increasing tariffs to and from Mexico. You can see US businesses

being heard. How will it play out. President Trump once more jobs in

America but it is easier said than done in a critical and complicated

industry. These big three carmakers not alone in Goa were either

bankrupt or on the brink of it? Absolutely. They were making cars

that were not selling very well so you could see a situation where if

they are forced to open new plans, they could start edging back to

overcapacity. The small cars produced in Mexico are ready in

declining sales in America. Do you want them to be producing things

that are not selling in. I am sure we will be getting news and tweet

from Washington as the day progresses following the talks

between Mexico and the US officials. Lego - the Danish-owned toy company

has told the BBC that authorities in China need to do more

to tackle fake goods - after the man in charge of Lego's

huge new factory in China failed to spot a fake piece

from the real thing. Lego is currently involved in legal

action against one Chinese manufacturer it claims

is ripping off its products. Here's our Shanghai

Correspondent Robin Brant Billions and billions of these

little elastic bricks have been sold the world over and out Lego is

betting big on China. What started out with handcart bricks in Denmark

in 1949 is now a $100 million state-of-the-art operation near

Shanghai but they are not the only ones doing it. Is this Lego? Copies

like these and fakes and counterfeit our prolific in China. Lego is

currently suing the firm producing this copycat. How is the user to

spot the different? We asked the experts.

If you have to ask me to guess I would say this one, maybe. Which one

do you think is a real? You think this one is real. Correct. The truth

is, they look and feel almost identical. So good even the boss of

the new factory cannot tell. Have a look at that for me. What do you

think of that? It looks like a mini figure to me. What do you think of

him? Which one is yours? Have a guess. I would say this is housed

and this is not. This is Lego. That is not Lego. It is trying to be

Lego. Lego is not the only foreign firm investing big in China but

having trouble with local copycats. Land Rover is made here. These

assault particularly well but the British firm has been powerless to

stop this, cut away, this is similar on the inside and very, very similar

on the outside but a lot cheaper. This is the copycat that caught

people out. You can buy these on Aly Baba. The twin maker is still

pursuing manufacturers in the courts because even the boss cannot tell

the difference. I have so many of those in my house

and I shall they are all genuine, but who knows!

Let's head to Asia - Japan has posted its first annual

trade surplus since the Fukushima disaster.

Rico Hizon is in Singapore - Rico how did Japan pull it off?

The numbers in Japan are surely in January. Surely! That is good news.

Yes, and it has been a long way. A combination of soaring exports and

lower energy prices and the depreciation of the yen. They fell

by nearly 16% due to the falling cost of crude oil and liquefied

national gas which left Japan in an almost $36 billion debt. The 2011

Fukushima disaster sent the import bill soaring as it turned to pricey

fossil fuel alternatives and exports rose in December for the first time

in more than a year. This could be a good year once again for the

Japanese economy. Let's keep the fingers crossed that this could be

sustained. Let's quickly show you markets. Markets across Asia having

a real boom. Japan boosted by the news about the trade surplus.

MPs have stepped up demands for the government to publish

its plan for Brexit in a formal policy document.

The demands for a white paper, including from some Conservatives,

follow yesterday's Supreme Court ruling.

Theresa May must give parliament a vote before triggering Article 50,

the formal process for leaving to the EU.

It's thought legislation could be introduced as early as tomorrow.

Here's our political correspondent Tom Bateman.

After the judge is ruled only Parliament could start except, today

a warning from MPs not to try to derail the plan. -- Brexit. Article

50 is at the start of the process and it must be put before MPs and

laws. What lies ahead? The government says the legislation

paving the way for Brexit will be tabled within days and voted on by

both houses of parliament. Theresa May wants Article 50 triggered by

the end of March then Britain has two years to leave the EU. There can

be no going back. The point of no return was passed in June of last

year. Labour said they will not block Article 50 but one to amend

the bill, giving MPs more control. If necessary, there will be

hand-to-hand combat. We need to make sure we get the best deal on behalf

the country and she cannot say she acts on behalf the country. Theresa

May also faces opposition and some of her side. For now, at least

ministers believe they are on track to get Brexit triggered by the

spring. Coming up at six o'clock

on Breakfast - Dan Walker and Louise Minchin will have

all the day's news, They'll also have more on a delayed

upgrade to the radio system, used by the emergency

services in England, Scotland and Wales, that may cost

taxpayers ?475 million The top stories this hour: American

media say President Trump will sign an order tightening security along

the Mexican border on Wednesday. He is also said to be seeking

tougher visa regulations for citizens from seven

Middle Eastern and African, Mr Trump tweeted that it would be

a big day for national security. The Israeli government has approved

plans to build 2,500 more homes on occupied Palestinian

land in the West Bank. It is the second such announcement

since President Trump took office. Palestinian officials say it

will fuel extremism and make any Several MPs from the governing

Conservative Party have supported calls from the Opposition

for the British Government to formally set out its negotiating

position on leaving Ministers are preparing to bring

forward draft legislation, following a ruling in

the Supreme Court on Tuesday that Parliament needs to vote in favour

before the Government can trigger The French President,

Francois Hollande, has been meeting leaders of Colombia's

largest rebel movement, the Farc, at a rural camp

in the west of the country. Mr Hollande, accompanied

by President Juan Manuel Santos, offered financial support

for de-mining programmes The Telegraph leads with yesterday's

historic UK Supreme Court ruling. Only through Parliament can there be

a vote on whether the Government can The judgement means the Government

cannot begin talks with the EU until MPs and peers

give their backing. The Guardian says US

President Donald Trump has infuriated environmentalists

by signing executive orders that support two controversial

oil pipelines. The new Republican President

backed the Keystone XL The Arab News reports that Israel

has approved the construction of 2,500 settler homes

in the occupied West Bank. Prime Minister Benjamin Netanyahu

said they had agreed to the move The Independent says close to ?8

billion was wiped of the market value of BT, after the UK

telecommunications giant said accounting errors in its Italian

business are far greater The Guardian business pages say

Citigroup is deliberating over which new EU financial

centre will relocate The banking giant is in discussion

with Ireland, France, Italy, Spain, Germany

and the Netherlands. Pretty much the whole of the EU, it

seems, write? -- right? And finally, hit Hollywood film

musical La La Land has scored Only two other films,

Titanic and All about Eve, Joining us is Cornelia Meyer,

who is CEO of MRL Corporation, Good morning to you. Morning. Have

you seen the La La Land? No. I am not a big movie-goer. This whole

Brexit thing, and the Supreme Court ruling, apart from what it means for

Brexit, it is also very momentous in terms of saying who has real power

in the United Kingdom, and Parliament was told you will be able

to vote. Yes, but I think the Supreme Court was quite clear they

can't overturn the verdict of the people. It is a matter of process.

It is Parliament needs to give its blessing to triggering Article 50.

So there is another review of Article 50, but it was not a ruling

that said, OK, you can now sort of negate the will of the people, who

sadly wanted to leave the EU. The issue, though, is about the law,

isn't it? The fact that a lot of EU law is law in the country, domestic

law. On the point is that ministers cannot change the law that has been

approved in the UK Parliament without the approval, without an act

of Parliament. So that was the actual issue, wasn't it? It was an

eight issue of law. It was an issue of law and process. The government

has said they will make the EU laws our own laws and deal with it later

on. What I find interesting is how... One of the things is also,

they said Parliament should get a say. They said the government didn't

have to go to the devolved powers. So they didn't have to go to

Scotland and Wales, and so on, to get the go-ahead to trigger Article

50. That was very important as well. Here we come to the fallout. We have

Nicola Sturgeon from Scotland, Tim Farron from the Lib Dems and Jeremy

Corbyn from the Labour Party and how they will be able to potentially

affect how the government goes about negotiating Brexit. Because they

have their own ideas. They have their own ideas, and it is good we

are a democracy and good we are discussing it out, but we had a

referendum. And I was a firm remainer, we had a referendum and

said leave. We probably have to leave, and it is a bit disconcerting

when certain parts say let's have another referendum. Referenda are

not things you can do and do until you get what you want. They are not

asking for another referendum, but a route to stay in the single market,

do you see what I mean? It is how we leave, but the Lib Dems asked for a

second referendum. Some of them even asked for a second referendum. Says

a lady from Switzerland, where they have referenda every other day! That

is a different story. That is part of the problem, because we don't do

referenda here so often. That is why we had to go back to the Supreme

Court to get a ruling on how do we now deal with a referendum? OK,

Donald Trump. Do you want to take this? We know what the story is, the

controversial pipelines. Barack Obama didn't want them, Donald Trump

wants them, and also coal and that sort of thing. I think those two

pipelines I would not be against those two pipelines. Let's not

forget, Barack Obama only nixed the Keystone XL pipeline just before the

Paris agreement, so he had a better position. What I am worried about

is, some of the things he wants to do may not necessarily be bad

things, but the way he goes about it, the way he rams everything

through, I have one, and now I can do whatever I want. I am very

fearful of a huge backlash against the oil industry and against other

energy industries, you know, in the next three to four years, because it

is just round down. When you swing the pendulum too much to one side,

it usually swings back quite violently. That sort of where I

would stand on this. Arab News. Israel approves 2500 new settlement

homes in the occupied West Bank. That is their headline, talking

about the announcement from Benjamin Netanyahu yesterday. Give us your

take on this. It is to do with President Trump. It is to do with

President Trump, who is clearly one of the most pro- Israel presidents

there ever were. Two of his advisers, his son-in-law and Steve

Bannon, are very much pro- Israel, pro- settlement. It is also, as your

correspondent said, to do with internal politics in Israel. What it

means, it is very bad for everybody who believes in a two state

solution, this is very bad for a two state solution. Because it infringes

on what is Palestinian territory. And the question is, how do you get

to a lasting peace? Most people see a two state solution, including the

Secretary General of the UN, C at two state solution as the way to get

there. And if that is the objective, this is very bad news. A couple of

days before this BT wiping off a brilliant pounds of its share value,

I heard that BT broadband's prices are going up. As a BT customer I

thought, well, that is the market, but I wonder if it knew it was about

to become public? Probably not, but what this shows is that you really

need to have, as a company, you need to get your account is clear. And

when you have bad news you need to make sure you understand that the

bad news is, and you communicated immediately to the market. Because

this drip, drip, and then we were wrong, that totally goes against

investor confidence. And having 20%... It was a shocking

announcement, and the market reacted accordingly. 20% of the market

value. And it was, because they first said it was 145 million, and

then it was sort of four times more. So I think that is... That shows

that when you have bad news, it is very important that you first get

your together, and that you communicate effectively. Shall we

move on to... You want to look at films? We have to talk about

Citigroup, and then the Oscar nominations. Quickly on Citigroup,

it will be very interesting to see how Citigroup and other banks,

fearful of the passporting rights within the EU, my favourite is

Dublin. The Frankfurt people think Frank that is so good but the

trouble with Frankfurt and Paris is that the Labour laws are so

difficult. Once you have hired someone it is very hard to fire them

again and if you have a trading room you need to be able to immediately

hire our lot of people and then immediately let go of them.

Financial markets are fickle, and your headcount has to reflect that.

So Dublin is probably the easiest to do those sorts of things. Do you

like musicals? Yes, I do like musicals. Did you ever see Titanic?

I did when it came to the small screen. And La La Land has equalled

the number of nominations of Titanic and All About Eve. I did enjoy it,

but because it has had so much publicity and has all these awards,

I expected to be completely wowed, and I wasn't. At as you said, when

we had a quick chat before, Hollywood loves Hollywood. It is

about Hollywood, so of course they love it. Thank you very much indeed.

The film I would choose to take you to is Predator versus Aliens on a

massive screen. See you soon. Wednesday will start quite windy

across northern and western parts