13/07/2017 World Business Report


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13/07/2017

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


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From the corporate world to the top job in politics:

:00:17.:00:18.

A similar journey but two very different Presidents.

:00:19.:00:22.

So on trade and climate change, can they do business?

:00:23.:00:26.

Plus, facing up to artificial intelligence.

:00:27.:00:28.

Critics fear it will take our jobs, but tech giant Microsoft says it

:00:29.:00:32.

We hear their plans for the biggest invention since electricity

:00:33.:00:45.

Strong trade figures from China are good news

:00:46.:00:59.

but likely to stoke tensions with the US.

:01:00.:01:03.

We start in Paris, where, as you've been hearing,

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US President Donald Trump is arriving in the next

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He'll be celebrating France's Bastille Day tomorrow

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as President Macron's guest of honour.

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Despite tensions between the two, the White House says he'll be

:01:14.:01:16.

reaffirming the strong ties of friendship between the countries

:01:17.:01:18.

and building on their economic partnership.

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Let's take a look at what's at stake here.

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The EU's trading relationship with the US is the biggest

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The problem for President Trump is it's tilted in Europe's favour.

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in other words it sells more goods to the US than the other

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Which brings us to this: the Transatlantic Trade

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Talks on the massive free trade deal between the EU and US have been

:02:00.:02:04.

suspended since Mr Trump came to power.

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The business world will be watching closely.

:02:07.:02:10.

As it will on this - the Paris climate change accord -

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Mr Macron says he will be pressing Mr Trump to sign up again,

:02:14.:02:17.

Another source of transatlantic tension -

:02:18.:02:22.

European pressure on the big US tech firms

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But on Wednesday a French court ruled that Google is not liable

:02:25.:02:32.

So despite the war of words - and handshakes -

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could Presidents Trump and Macron - both from the corporate world -

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end up having a good business relationship?

:02:44.:02:47.

Hillary Clinton said during the campaigning in 2016 that Trump was a

:02:48.:02:54.

big bully and needed to be treated as such. Sounds to me like someone

:02:55.:02:59.

at that Champs-Elysee listened to that sentence of hers and advised

:03:00.:03:05.

Emmanuel Macron to act as a bigger bully them Trump and establish his

:03:06.:03:11.

authority in a way, and, when that's been done, he moved on to being much

:03:12.:03:15.

more friendly, which we've seen during the G20 Summit in Hamburg,

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where they exchanged jokes and invited Trump to the Bastille Day

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celebration, and this strikes me as very clever, because he has

:03:34.:03:35.

established themselves as somebody you cannot fool with. Interesting,

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you know, when world leaders meet, the personality factor can have a".

:03:45.:03:49.

How do you think they will fare, these two, with very different

:03:50.:03:53.

approaches? They have different approaches that a similar

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background. Both have a strong business orientation and they go

:03:58.:04:01.

about fees relationships in a businesslike way, and if they can

:04:02.:04:04.

get a good business relationship, that will lead to a good business

:04:05.:04:11.

relationship as well. If the talks on that free trade deal, the

:04:12.:04:15.

transatlantic trade and partnership has stalled, what hope do you think

:04:16.:04:19.

there is of them trying to resurrect the talks on that? There's always

:04:20.:04:24.

hope. Clearly, for good business relationships, you need to have

:04:25.:04:27.

trade, and they have an established trade relationship, and that can

:04:28.:04:31.

become deeper. From the point of view of Trump, who has been worried

:04:32.:04:35.

about some of the agreements, particularly from the Asian part of

:04:36.:04:40.

the economy, that low-cost goods are used, in the EU and the US, they are

:04:41.:04:45.

more equally balanced. It would go against the tenor of all we've heard

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from him about putting America first, this more protectionist

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stance. It might seem a bit of a leap to think that he would go back

:04:54.:04:56.

towards the free trade deal discussion. Absolutely. I don't

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think it's likely development but it's still possible, and it's

:05:03.:05:06.

something the EU would like to do, as they've just concluded another

:05:07.:05:09.

great agreement with Japan. As far as climate change goes, we saw in

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the G20 - that's where the US diverged from the other members of

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the G20. Do you think there's any chance Donald Trump will sign backup

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to that? I don't think it's likely that it would be fantastic if he

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does. In particular, Paris is the heart of the regional climate

:05:31.:05:34.

agreement, where it was set up, so the fact Trump is coming that way is

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interesting. No doubt the decision by the French courts that Google

:05:39.:05:43.

isn't liable for the fine in back taxes will make things a little

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easier in their discussions, because that's been a point of contention,

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as far as the relationship goes. Absolutely, and the fact that Trump

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is coming to Paris is a good sign in all sorts of ways. Thanks so much.

:05:58.:06:00.

We are also talking about artificial intelligence.

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It has been accused of threatening everything from jobs

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It's also being called the most important technology to come along

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since electricity, and companies are racing to invest in research.

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At an event in London, Microsoft has stated its ambitions

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to be a leader in AI, and outlined a code of ethics

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Here's our technology correspondent Rory Cellan-Jones:.

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Three feet away. Take picture. What if artificial intelligence could see

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your world and interpret it for you? This Microsoft engineer, who is

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blind, is showing me anew at called Seeing AI, designed to help visually

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impaired people. As well as reading text, it can tell him about the

:06:52.:06:55.

people in front of him as sometimes he gets it wrong. Looking happy. I'm

:06:56.:07:03.

getting younger by the minute! This is an application close to my heart,

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but the general AI we show is applicable in so many different

:07:08.:07:13.

ways. From around the world, Microsoft scientists came to London

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to show off their AI projects. Like this live translation system for

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presentations. Or software which can search through hours of

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closed-circuit TV. As well as staking a claim in the leader of

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this technology, the firm has come up with some ethical principles for

:07:33.:07:37.

AI. Microsoft believes we are creating AI to amplify human

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ingenuity, not to compete with it. So as such the human is the hero. I

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want to end our you with superpowers. Microsoft is just one

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of the tech giants battling to profit from advances in artificial

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intelligence which are giving computers skills once restricted to

:07:55.:07:59.

humans. So they are learning to see. One example, driverless cars can see

:08:00.:08:04.

exactly where they are going. And learning to hear what we say and to

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respond to it. So Amazon's Alexa or apple's sirree can respond when we

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ask them to give us the news or maybe recommend a restaurant. They

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are even making judgements. For instance on whether a scan shows a

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malignant or other nine July. In this battle over this crucial AI

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technology, Google and Facebook are each spending vast sums on research,

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but China refuses to be left behind, investing heavily to build robots

:08:35.:08:37.

that will take over from humans and its vast factories. It looks like AI

:08:38.:08:43.

is going to transfer oil Aaron economies, transfer and our

:08:44.:08:47.

industries, potentially make us all wealthier and happier, and the

:08:48.:08:50.

companies who get their first will take the spoils, will take the

:08:51.:08:55.

rewards so they have to come out loud and strong. Progress in

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artificial intelligence has been more rapid in recent than even

:08:59.:09:01.

scientists predicted and companies like Microsoft know they can't

:09:02.:09:04.

afford to fall behind. To Asia now, and China has just

:09:05.:09:07.

released trade figures They have come in much

:09:08.:09:09.

better than expected - but likely to prove controversial,

:09:10.:09:17.

particularly in the US Who can tell us more?

:09:18.:09:31.

Well, the numbers suggest that the economy in the mainland is holding

:09:32.:09:37.

up quite well, thanks to firmer global demand, despite the cooling

:09:38.:09:41.

property market, despite a financial crackdown that has put companies

:09:42.:09:45.

under pressure. If you take a look at the numbers, June exports rising

:09:46.:09:51.

11.3% from a year ago, while imports expanded 17.2%, both beating

:09:52.:09:55.

analysts' expectations. You mentioned the US. Those are one or

:09:56.:10:01.

two interesting factors. The deficit with America continues to widen.

:10:02.:10:05.

China had $25 billion trade surplus with the US in June from $22 billion

:10:06.:10:12.

in May, China's highest level then since October 2015, and the other

:10:13.:10:15.

significant number is China's first half trade with North Korea. It

:10:16.:10:21.

gained 10.5% year-on-year. Donald Trump denounced the increases, which

:10:22.:10:29.

cast doubt on whether Beijing was helping to counter the threat from

:10:30.:10:32.

North Korea. Analysts for export growth are slow, due to rising

:10:33.:10:38.

geopolitical risks and a stronger yuan and US dollar exchange rate.

:10:39.:10:45.

Thank you. Let's take a look at the markets before we finish up. A mixed

:10:46.:10:50.

picture, it's fair to say, on the Asian markets. They had surged

:10:51.:10:53.

initially, taking their cue from Wall Street overnight, but they have

:10:54.:10:57.

calmed a little as the trading day wore on, the Hang Seng responding

:10:58.:11:01.

positively to that Chinese trade data that we heard about from Rico:

:11:02.:11:13.

We will have more on that a little later. Thanks for watching.

:11:14.:11:30.

Across the country, many teenagers are on work experience placements at

:11:31.:11:35.

the moment. Few will have had perhaps as much fun

:11:36.:11:37.