27/01/2017 World Business Report

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But these days is the 'special relationship' simply more special


And when is a $5.3 billion profit in three months just not enough?


We'll tell you why investors are not happy with Google and also find out


if its parent company Alphabet's other bets will pay off?


We have the Friday feeling and if you are watching for the first time,


stay where you are, we have a snapshot of the latest in the world


of business and money. We will also discuss the year of the Golden


Rooster. we start in the US where,


as you have been hearing, UK Prime Minister Theresa May


will become the first world leader to meet President Trump


when they hold talks later today. Mrs May has called on the President


to renew the 'special relationship' She is keen to show Britain can


prosper outside the European Union - so lining up a post-Brexit trade


deal is high on her agenda. But is it really


a priority for the US? Let's show you some


of the numbers involved. the United States is the UK's


top export destination. Britain sold goods and services


worth $125 billion to Taken together though,


the European Union is by far Britain's top export market,


worth $280 billion. Any drop in those exports


as a result of Brexit could see Britain is far less


important to the US America sold $65 billion of goods


and services here in 2015 - half the amount that


went the other way. And to put that in the context


of the vast US economy, that is little more than 4%


of total US exports. And less than half


a percent of US GDP. So putting aside the warm words,


will this really be a priority We'll be getting the views


of an expert in just a moment. We are excited that Prime Minister


May is coming on Friday. We look forward to it. It may not seem like


it but president Donald Trump and Prime Minister Theresa May have a


few things in common. Their rise in power was fuelled by populism and


the establishment rejection. Another hoped to create bilateral treaties.


He will talk to the Prime Minister and have a great conversation about


the potential for greater trade with the UK. The pressure is on. Brexit


negotiations are imminent. And nailing down a trade agreement with


the US would give Theresa May a big boost back home. Because of these


strong economic and commercial links and our shared relationship, I look


forward to pursuing to talks with President Trump and his new


administration about a new UK US free trade agreement in coming


months. The fact she is the first world leader to visit the White


House under a Trump administration is perhaps a testament to Britain's


special relationship with the United States. I am meeting with the Prime


Minister tomorrow, as you know. Great Britain. So I am meeting was


her tomorrow. I don't have my commerce Secretary and they want to


talk trade. I will have to handle it myself. Which is OK. There you go.


Stephanie Hare is an independent political risk analyst.


Thank you for being here. He will handle himself, right? Looking at


those numbers, it is astonishing. Just 4% of US exports come over here


compared to what we, as is the Australian to be American, we ship


over there. If they can deal the table, they do a big deal, can the


US make up for the void if we lose out on the union? Theoretically,


sure. What is likely in what is probable? The fact that the matter


is that if you were to take the trading relationship between the


United Kingdom and the EU and the United Kingdom and the United States


and remove the labels and look at the numbers you would pick the with


the EU everytime. And, yet, we have had a vote where we are leaving the


European Union and now we are in a position where we have to leave an


extremely advantageous trade relationship and make up for it with


other deals. The Prime Minister has a job on her hands. President Trump


as saying that he will do this himself but we know that today it is


just talks between the leaders. They won't do anything, it is just about


the team of negotiators. As the UK have the right people in place to


make, to do the negotiations without being eaten alive by your lot? The


United Kingdom does not have sufficient numbers of trade experts


right now and at what is worrying, of course, is that they had to do


trade negotiations with the EU and the other 27 member states and now,


potential, with the United States. So, again, it is sort of like


entering a boxing ring with one arm tied behind your back. And how about


the US boxer? They have some of the best trade negotiators in the world.


OK. OK... That is reassuring, isn't it? What will success look like for


these two today? Success will look like the two of them being able to


come away making some reassuring noises about the special


relationship. We can expect to see the UK Prime Minister talking about


that, that she has made her point and she is coming back with her red


white and blue Brexit deal, getting a good value the United States. Like


Chamberlain walking off the plane back in 1938, 939...? She is quite


constrained in terms of what she can do to the next two years. Until the


United Kingdom leaves the European Union cannot formally negotiate any


other free trade union agreement. We need the UK to trigger Article 50,


go through Brexit, formally leave the EU and only then can we formally


negotiate. There will be talk behind the scenes and that is what is


happening today. Donald Trump, he can talk about anything and say


things and we have all learned that what he tends to say things like he


is floating a balloon, he can walk things back. He will make noises


that make him seem positive. But I don't think it will really be worth


the paper it's written on. We need to see what is going to in two years


time. As an American living in the UK, do we matter? Is Britain Mattan


to the US? It is always good to have friends in the world. Very


diplomatic. -- -- does Britain matter to the world?


When is $5.3 billion profit in three months just not enough?


The parent company of the internet giant saw its shares fall


in after hours trade after its quarterly


As Dave Lee reports from San Francisco,


there are concerns about a slowdown in the growth


and just how future proof the company may be.


We call it picks cell. The final three months of 2016 were important


for Google. It launched a new smart phone range and went big with its


new voice-activated system. The company did not break out the


numbers to those new devices so it is difficult to know how they


perform. O'hAilpin chief executive said he was comfortable with the


direction things were going with the new products. He will lead them to


succeed. The revenues of Alphabet which are at 22% on this time year


still rely heavily on earning money through Google's advertising. It's


even more of us turned to mobile computing people are tapping on


Google ads more than they used to. But advertisers of paying less per


click than before. Aside from Google, Alphabet has what it calls


its other bets. Things like superfast broadband, self driving


cars, smart thermostats. The revenue of those is double compared to this


time a stupid overall in the last three months those bets collectively


lost the company $1.1 billion. Let's go to Asia finally -


where tomorrow marks the start Roosters are supposed to be


hardworking, confident and talented but can be vain and arrogant


with a tendency to boast. And they have a tendency


to ruffle feathers. There you go. Thank you. Happiness


and asperity for you, Aaron. Right back at you. The year of the


rooster... You have been speaking to an astrologer? Is that right? That


is right. You know what? We are leaving the year of the monkey which


was full of mischief and unexpected outcomes in 2016. Let us all welcome


the year of the rooster. Here it is. 2016 was bad and according to the


astrologers I spoke with 2017 will be a year of disruption,


transformation, conflict and revolution. And if you take a look


at the political side of the fence, the most important link here is the


combination of China's leader, US leader and Russian leaders. They


were all born in the year of the rooster. The big question is will


they be able to work with each other because this will surely dominate


global markets. But if you take a look at the business side in the


near term, build lunar New Year and the biggest human migration in the


world, citizens get a seven-day break and much of the economy will


come to a halt. Many people will return to their home towns or visit


families and travel overseas. This is big money going forward. OK,


Rico. Please put your rooster away. We will be back later and you can


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