06/04/2017 World Business Report

The President of protocol meets the maverick billionaire turned

President - but will Trump and Xi get down to some "serious business"

or will the meeting prove to be too difficult?

The rain and wind may have forced fans off the course of the Master's

golf tournament in Augusta - but the event that attracts

the worlds golfing elite is big business.

Also in the programme it is interest rate decision day in India.

A much-anticipated meeting between the leaders of the world's

On Thursday, US President Donald Trump will host Chinese leader

Xi Jinping at his Mar-a-Lago resort in Florida.

It is the very first time they are meeting in person and trade

At just over $659 billion of goods and services in 2015 it's one

of the biggest trading relationships in the world.

Last week Mr Trump tweeted that today's meeting "will be a very

difficult one in that we can no longer have massive trade deficits."

Trump has been outspoken in his desire to put "America First"

and in terms of what he might do about it during his election

Mr Trump floated the idea of a 45% tariff on goods from China.

But the big problem Donald Trump has is that it's heavily tilted

in China's favour because the US had a deficit of $336.2 billion.

There have been indications China would retaliate to any such move

and in January President Xi said "waging a trade war will only cause

So will the two leaders see eye-to-eye?

And what do the businesses in New York want to hear?

We cannot continue to allow China to rape our country. They have taken

our money, they have taken our jobs. China is a currency manipulator.

America has lost 70,000 factories. Since China entered the World Trade

Organization. Probably not the best way to tee up a meeting with

America's second largest trading partner. But meeting they are, at

the Trump estate in Florida. Two countries have a lot to discuss.

Take this custom lighting manufacturer in suburban New York.

The import products from China to create some of their lighting

features and they have also sold to China, something they will not do

again. I want to take an order -- I will not take an order for China in

a national account. I will sort them locally, they have to figure out to

get it to China. Because it is that difficult? It is, it is that

difficult. We are just not on an even playing field. Lieberman

believes it is China that has to change, making it easier for

companies like used to do business in the country. But Mr Trump will

have good times those wants with the reality that America's economy

depends on a working relationship with China, and his bombastic style

makes some uneasy. 38% of all apparel comes from China. 73% of all

footwear comes from China. How supply chains are entrenched in

China. If anything were to happen to that relationship it would be a big

trouble for retail and America. There is a lot riding on this first

face-to-face meeting between President Trump and President Xi

Jinping. President Trump has had a lot of success with trade populism,

but establishing a viable trade policy is something very different.

We will discuss that meeting a bit more detail later on in this

half-hour. Let's move on to other stories.

In a few hours' time the Central Bank of India

Even though rates aren't expected to change, the new governor

is likely to release some comment about the demonetisation that has

Now three months in since old currency was declared invalid,

have the people of India coped with the transition?

And when is the central bank likely to lift restrictions of daily

Tell us more about what the central bank is likely to say today about

that problem? Well, Sally, a direct comment is not expected from the

governor of the central bank. There are two reasons for that. Number

one, the e- monetisation programme seems to have been settled on the

ground now. -- di monetisation. There is enough liquidity in cash

now. This problem has really reduced over the last few months. That is

why the government -- governor may not say anything directly. As far as

interest rates are concerned most economists predict they will hold

rates. There are two reasons. Number one, due to demonetisation people

started depositing their cash in banks, and there is too much cash in

the banks right now. Number two, there are inflation has seen an

uptick in stock the governor of the central bank does not see any reason

to cut interest rates at this time because they feel that banks are

already flooded with cash any to start releasing that into the

system. They may look at other tools within the ability of the central

bank to push banks to release liquidity or access cash in the

system. That is something we will be watching closely, what the central

bank does on that. All right, and as we say, most people are not

expecting any move on rates. When do people think interest rates may be

on the move next? Well, interestingly, the last time the

central bank had been monitoring policy meeting, for the first time

in two years, the central bank said that as far as interest rates are

concerned, from an accommodating policy, which means that they are

tilting towards cutting rates when the situation is final on the

ground, they have moved their stance to neutral, which means they will

make a call based on inflation, based on the liquidity situation.

The growth rate in India's economy is growing fast but inflation has

started to rise and that has been the central bank's top priority in

the last few years. Whenever there has been an uptick in inflation they

immediately become cautious and prefer holding rates. That is why

there is no reason, economists do not expect any rate cut in the

months to come. The 81st Masters tees

off today in Augusta, And like any big sporting event,

there's some big numbers behind it as Ramzan Karmali has

been finding out. If you win the golf championship at

Augusta you get rewarded with a green jacket. Unlike here on some or

road the cost of that jacket is just $250. -- Elon Saville Row. If you

win the tournament to get $1.8 million, lack written's Danny

Willett did last year. Even if you come last, you still get rewarded

with a cheque of $20,000, plenty for a jacket like this. But for us mere

mortals just getting into the ground could be quite an expensive day out.

250,000 people are expected to visit the famous Augusta national, with

some pain between 30 and $100 and $15 just to get into the ground.

Last year it was estimated that ticket sales revenues were $35

million. And once you are on the grounds, don't expect your wallet

not to take another hit. The cost of a chicken sandwich, $3. A bottle of

water, $2. Perhaps you are better off staying in and watching it on

the TV. Don't worry, the organisers get paid for that too. International

broadcasting rights, $25 million. JAB Holdings, the owner

of Krispy Kreme Doughnuts, will buy the bakery chain

Panera Bread for $7.2 billion, as it expands its coffee

and breakfast empire Panera has about 2,000 bakery cafes

in the United States and its fresh offerings appeal to

health-conscious consumers. The founder and CEO of Amazon,

Jeff Bezos, says on he is selling about $1 billion worth

of Amazon stock per year to fund his Blue Origin

rocket company. In all he expects to spend

about $2.5 billion developing a rocket that can lift satellites

and eventually people into orbit. Blue Origin aims to launch paying

passengers on 11-minute suborbital That is quite an interesting story,

the space race between the business billionaires. Looking at the

markets, in Asia they are reacting strongly to what was going on in the

US yesterday. Lots of news coming from the Federal Reserve. Comments

in their minutes from their last meeting spooking investors

worldwide. There is talk of the Federal Reserve basically shrinking

its own balance sheet, but also some of the comments they have made about

the fact that stocks have gone too far caused a real stir at the end of

trading on Wall Street. Lauer and the down slightly, but the S 500

was up by 0.8% and in the last two hours of trade it fell and reversal

of that. We will be back in a moment with a look at some of the other

stories in the news. Stay with us and I will see you then.

There's a call for the drug ketamine to be used more widely by the NHS

Psychiatrists in Oxford say they've had some success with a human trial

using the Class B substance, which is also used as a horse