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tv   BBC Business Live  BBC News  January 11, 2017 8:30am-9:00am GMT

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this is business live from bbc news with sally bundock and susannah streeter. donald trump gets ready to tell us how he intends to separate his business interests from affairs of state, but can he really avoid conflicts of interest? live from london, that's our top story on wednesday, 11th january. the billionaire has business interests around globe. he'll try to reassure the world that they won't influence his policies. we will talk you through what's at sta ke. also in the programme, the heir to the samsung empire faces questioning over south korea's influence—peddling scandal. we'll be live in seoul for the latest. markets in europe look like this. all down just a touch, but let's not
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forget, they have been going up and up forget, they have been going up and upfor forget, they have been going up and up for days it would seem. we will talk you through the winners and the losers. we'll meet the man who bought a failing factory and turned into a thriving business feeding babies around the world. plus a new device has been launched to muzzle noisy phone calls in the office. what most distracts you at work? it is called a hushmie and it can't be used by presenters i'm told! in the last few hours we've heard president obama's farewell speech with just over a week left in charge of the world's biggest economy. today his successor donald trump will give a long awaited press conference, his first since winning the white house in november. there are still questions about how he will separate himself
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from his vast business interests. in his latest disclosure the president—elect revealed interests in 144 companies. these have had dealings in least 25 countries in asia, europe, africa, south america and north america. democratic party politicians are amongst those to express concerns this could influence his policies towards some of those countries. he derives much of his income from developing real estate and also operating golf courses in the us, britain, ireland and the united arab emirates. but he also makes money from licensing the trump name to property developers around the world. some of those projects have been engulfed in controversy. however, it should be noted that as president he is legally allowed to continue to run his businesses. but previous presidents have put their businesses into blind trusts to prevent conflict of interests or the perception of them. with me is stephanie hare,
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independent political risk analyst. this is all about trust. it has been such a divisive election campaign. what he says and what he does now is going to be crucial, isn't it, in regaining the trust of half the us population? exactly. this is a question about perception. so, as we just heard, he is legally allowed to run those businesses. however, he is already looking likely to run foul ofa already looking likely to run foul of a clause which is part of the us constitution. something like his trump international hotel in washington dc, he's going to be in violation of the lease terms on that which says he can't as an elected official hold the lease on that hotel. if he doesn't divest himself of his assets by 20th january, which looks highly unlikely unless we get a surprise looks highly unlikely unless we get a surprise announcement looks highly unlikely unless we get a surprise announcement today, he will be in a position where it could look as though he might be able to
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manipulated or influenced or could himself seek to manipulate or influence based on his global holdings. and if he puts members of his family in key positions, that's going to have a big implication as well, isn't it? they too will have to show that they have divested their interests? the purpose of a blind trust is that he would sell his assets and hand over the money to an independent administrator who i’u ns to an independent administrator who runs that fund for the time that he is president. he would have no idea what's in the fund. that's not what we're seeing. we're seeing that he is proposing his two adult sons run the trump organisation. now, he knows what's still in his investment portfolio. everyone knows what's in his investment portfolio in terms of what is public and he is going to be having a relationship with his two sons. the potential for having a relationship with his two sons. the potentialfor conflict of interest there is very high. we have got rex tillerson who said he's
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going to sell off his share options and interests in exxon mobile. he was ceo. is that enough in regaining trust? that's easier. it is easier to sell shares than it is real estate. everybody knows that there is the properties. they know who is the owner. there is few people who ca n afford the owner. there is few people who can afford to buy the properties whereas shares are easier. rex tillerson's divestment process is more straightforward than the president—elect faces. more straightforward than the president-elect faces. stephanie, thank you. when the conference starts, we will be across it here on the bbc. in other news: volkswagen's management and supervisory board are expected to meet later on wednesday to sign off an agreement with the us department ofjustice and customs. a draft settlement has been reached for a $4.3 billion fine which would draw a line under the emissions cheating scandal. the german car—maker also said it would plead guilty to breaking certain us laws. the company has admitted cheating test on its vehicles and already agreed $15 billion
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in other settlements. prosecutors in the united states have charged three uk based former currency traders with trying to rig foreign exchange rates. they worked atjp morgan, citigroup and ba rclays. in 2015 the three banks as well as rbs paid $2.5 billion in fines after pleading guilty to conspiring to rig foreign exchange rates. lawyers for each of the three have denied they did anything wrong. the uk authorities decided not to bring any charges after looking into the allegations. the turkish lira has hit new lows against the us dollar. during asia's morning trade it fell another 0.5% to reach almost 3.8 to the dollar. it's one of the worst performing currencies in the world over the last 12 months. the economy has suffered because of continuing conflicts with kurdish militants and so—called islamic state. on tuesday turkey's central bank took action to try and prop up the lira. some breaking news on our bbc live
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page. there is a story about food. the uk company whitbread apologised over its beef lasagne. apparently there were reports that its beef lasagne included pork which some people don't eat for religious reasons. whitbread said some menus had not been properly updated. it issued an apology for that. it is a big player in the uk. it has many outlet including brewers fair and costa coffee chain. it is quite an interesting story. prosecutors in south korea have said in the last couple of hours that lee jae—yong who is the de facto head of the samsung is now a criminal suspect in the corruption inquiry that has already led to the impeachment of the country's president. steve evans is in seoul. steve is in the south korean
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capital. steve, tell us more, this is pretty major in terms of the developments on this story. the allegation is that samsung paid $18 million to a fund in germany controlled by the best friend of the president of this country. and the allegation is being investigated that in return samsung got the votes of the national pension fund for a big restructuring of the company. in 2015, the ruling family wanted to merge two bits of samsung. outside shareholders said that's only so you can strengthen your hold on the company. it is not in the interests of the shareholders. but so the allegation goes. the national pension fund put its votes behind the family. the prosecutor now thinks that that maybe because it had given money to the friend of the
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president in the first place so. that's the allegation. the herir to the company and his father has been told to appear at the prosecutors office at 9.30am on thursday morning. so it is a very serious turn of events and potentially very damaging for the company. all right, at the end of what's been a very damaging time for them. we'll talk to steve on thursday, i'm sure, as that unfolds. in asia they had a good day. japan and hong kong up. let's look and see how europe is faring. we've got vw shares up in frankfurt. it isa shares up in frankfurt. it is a big day for volkswagen. in london we've got the supermarkets dominating. lots of news coming from the big retailers in the uk about
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how they fared over christmas. sainsbury‘s shares up 3% and morrisons shares up 4%. we'll talk about that in detail in a moment. that's a dominating story this week for the uk retail. lots happening in the us. we've mentioned donald trump's press conference. let's hear some more from michelle on what wall street is watching. as well as donald trump's press conference where he is expected to discuss the future of his businesses, the coppic of conflict of interests is likely to pop up. rex tillerson. rex tillerson released a 38 page financial disclosure filing. senators will want to probe his sta nce senators will want to probe his stance on russia as well as his relationship with exxon mobile the oil giant where he served as chief executive until this year. just to give you an example. if the trump
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administration lifts russian sanctions exxon mobile would be able to move forward with deals worth billions. lawmakers will want to make sure rex tillerson is working in the interests of the us people and not for his former people. former company. joining us is richard fletcher, business editor of the times. what impact has there been on the dollar? we have seen the dollar strengthen in the last few weeks and months, overnight, we saw it full back against a basket of currencies, but not against the pound. the market will have one eye on trump today. the expectation for the us economy, the market appears to have concluded many of his policies will be good. it is a boost but, there is the fear about protectionism and what it means for trade and what it means for the us relationship with china. it is quite interesting the world bank global outlook was out
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today and that outlines the real uncertainty about the us and what impact it will have on the global economy, but interesting what michelle said, i think, for the first time, more than ever, not for the first time, but more than ever, we have got this issue of business interest and being in that senior position and it is notjust as michelle said, donald trump, it is rex tillerson as well, head of exxon mobile. although we have had lots of announcements on twitter, we haven't had many public announcements, we haven't had a big conference. it will be fascinating for the markets. algorisms are really having to adapt to the tweets, aren't they, that policy seems to be indicated by donald trump's tweets and they are having to adopt to that, like we have with news wires in the past? there is a pause between the first tweet or the second tweet. he is either slow at typing or keeping us in suspense. uk retail, a big week? we had next last week which was
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disappointing and morrisons yesterday which was good. sainsbury‘s today which was good and tomorrow we get marks & spencer's and debenhams and tesco. at the end of tomorrow we conclude whether in the uk it was a good christmas or bad christmas for retailers. reports that wall mart in the us is trying to restrict ture. —— restrict ture. richard will be back in about five minutes. he's not done yet. we have got some good stories to discuss including the hushmie! we've got a story that comes out of a movie. our next guest is feeding babies around the world. the supermarket sainsbury‘s said it had a record christmas week as it
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releases its latest trading update. the company said it saw 30 million transactions and £1 billion of sales. theo leggett is in our business newsroom. so a good christmas then, but was it all good news? well, if you look at the market reaction, investors are certainly impressed. i like having a spectacular graph. look at this one. sainsbury‘s shares up nearly 8.5% so far this morning because analysts we re far this morning because analysts were expecting the figures to be worse. on the surface, as you said, they're good. £1 billion worth of sales, 30 million transactions. dig into the figures a little bit more and it is not quite so rosy. if you look at like for like sales, so sales that are comparable to the same period last year, they were up just 0.1% and overall sales, only up 0.8%. nota just 0.1% and overall sales, only up 0.8%. not a spectacular performance, but think about it, this is a sector
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which is involved in a price war and there are all sorts of uncertainties and pressures like the fall in value of the pound which is likely to push up of the pound which is likely to push up prices. so it will have come as a relief to sainsbury‘s and other retailers that the christmas period seems to have been pretty good. the british retail consortium were telling us yesterday that the last week before christmas, with christmas falling on a sunday, so christmas falling on a sunday, so christmas eve being a saturday was better than expectedment so overall, there is optimism even though if you look into the figures, they're not actually that spectacular. no what about the year ahead ? actually that spectacular. no what about the year ahead? the big thing hanging over sainsbury‘s like other companies is the decline in the fall of the pound. pushing up the price of the pound. pushing up the price of imported products. buying in pounds becomes weaker. sainsbury say
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they are prepared. they say the market remains competitive. the impact of the devaluation of sterling remains uncertain, but they are prepared. can you think of anyone who might need a hush me? no idea what you're talking about. mit world ? idea what you're talking about. mit world? —— am i too old? idea what you're talking about. mit world? -- am i too old? is a lot more on the website about sainsbury‘s, morrisons, how we are faring in the uk. you're watching business live — a reminder of our top story: donald trump is getting ready to unveil what steps he intends to take to make sure his business interests don't conflict with affairs of state. let's ta ke let's take a look at the markets. slight drop across the board. in europe anyway. follows on from a record winning streak, particularly
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for the ft—se 100. record winning streak, particularly for the ft—se100. nine straight sessions in a row where there was again. well above that 7000 mark. volkswagen shares in germany, repercussions that they are settling $a.3 repercussions that they are settling $4.3 billion with us repercussions that they are settling $4.3 billion with us authorities. when our next guest came across a factory in northern england making baby formula— it didn't seem like a particularly glowing prospect. business was slow — so slow, in fact, that its owners were planning to shut it down. but he was able to see the potential and managed to secure a deal to buy the factory. next followed a deal with china — which was just recovering from a scandal over contaminated infant formula. china now makes up one third of the company's business. quite a good move. the raw materials are
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all sourced locally — using 220 farms in the region to provide the milk. and the business is expanding — it's now branching into the profitable health sector. and ross mcmahon, the boss of kendal nutricarejoins me now. how did you manage to get into china? the how did you manage to get into china ? the holy how did you manage to get into china? the holy grail. what did you do? how is the approach different to getting into the uk supermarkets?” researched the market for five yea rs, researched the market for five years, a researched the market for five yea rs, a lot researched the market for five years, a lot of the research done before i bought the facility. i work with the state—owned company, orient international. i met mr chang, a great man, working closely with him over the years. waiting patiently to buy the facility. launching the product in august, in 4000 stores, by february in 6000 stores, 90% of
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china. when you were in discussion with the chinese business people, china was coming out of a terrible baby milk scandal. chinese made baby powder was causing babies to be extremely unwell, some actually died. that had an enormous impact on the thinking of every mother in china. tremendous loss of confidence in chinese domestic product. really looking all over the world. britain has the best quality milk on its doorstep. i would imagine other countries would counter that! australia importing a lot of product. we saw the opportunity to put natural raw materials back into the product. multinationals were putting in oils, using skimmed milk. it is much more natural to use the full cream of the whole milk. a
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natural milk fat. this was a real gamble. the factory you bought was failing. what did you see when you went to visit that factory? what we re went to visit that factory? what were your thoughts about turning it around? festival, a world-class facility, built by glaxo 55 years ago, the staff have tremendous knowledge. absolute privilege to lead them. they have such a bank of knowledge. we share a vision, everybody excited about going all over the world. representing the brand name of the town. all of the products we launch, now kendal adult. the whole town is behind us. now there is more demand
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for baby milk products. the way the family is working, now grandparents are looking after babies. in the uk, you have not had that much success. the market is dominated by multinationals. they dominate the market. we are the only one using milk fat. we are getting fantastic feedback from consumers, testimonials from families across the uk. better provenance, better sleeping patterns. people are embracing the quality of the product. the quality of the products, competitively priced. supermarkets are ringing us up. in meetings and discussions with them, hopefully it will be available in the uk market by the summer. good luck. thank you for coming in. in ma
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meant we will get the stories in the business pages. including the hush me, we will explain what it is. many people getting in touch with that story. first, here is how to get in touch with us. you can stay ahead with all the day's breaking news on the business live page. we want to hear from you, too. the business live page. we want to hearfrom you, too. get the business live page. we want to hear from you, too. get involved. on tv, and online, whenever you need to know. we will explain what the hush me is now. well we're looking at the papers. phone gadget shuts up
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the office loudmouth. sounds like a gift. it does rank as one of the strangest devices to come out of the ces conference in las vegas. great amusement when we were discussing it at the times. you strap it across your mouth, and it stops colleagues being annoyed by loud conversations. they think you should have won at the times. you strap it on, you can have a conversation on the phone, very loud, no one will hear you. you get bluetooth through your earphones. you can still hear what the other person is saying. it plays music over your conversation, even if colleagues are very close, they will hear coming music. sounds fantastic. joe says can they hand this out on trains? i'm not sure i'd wa nt to this out on trains? i'm not sure i'd want to use somebody else's. simon
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says, really i get frustrated when the office resembles a library. i need an atmosphere. i do get that. max, it has to be snoring. where it at night. would there be breathing issues? a whole list of things, so noisy keyboards, people cooking fish. people talking with their mouths full of food. i have to say somebody could kippers down here, i could not function that day. financial times, deutsche bank scowling social media to find talent. we know about the fact that when you apply for a job they will look you up, find out what you have been saying on facebook, social media. the bank actually looking for people on social media, approaching them. deutsche bank are worried people are not applying to the bank
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that they would like to employ because banking has not got the reputation it once had. and they have had bad headlines. as well as encouraging people to apply they are searching out for graduates are searching out for graduates are searching social media profiles, twitter, what clubs they are a member of. this is a bit like you're uncool bank turning up at the graduate party waving a brochure, feel slightly creepy. it is a reminder to all of us, what is on social media may come back to bite us. it is a gift for linkedin. if you were on twitter, not quite as happy about your bank seeing your feed. thanks for coming in. that's it from business live today. there will be more business news throughout the day on the bbc live web page and on world business report. we will keep you updated on that press comments from donald trump. some proper winter weather over the
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next few days. a real mixture of things to come. sleet and snow particularly over the hills. icy roads, a potential hazard, and some strong winds. the strength of the wind will have the biggest impact to date. low—pressure rushing to the north of scotland, producing 60 or 70 mph gusts across the northern half of the uk. severe gales in northern scotland. fairly frequent showers over northern areas, with some snow over the hills. a wintry mix over lower levels. further south, not as windy, becoming largely dry, brighter. feeling colder in the wind. overnight not as windy, the wintry showers keep coming across the northern half of the uk. particularly in scotland.
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atrocious weather in the hills and mountains. icy conditions are likely. not too cold in terms of the numbers because of the strength of the wind. more cloud coming into the south—west. interesting setup on thursday. we have this feed of cold aircoming in across thursday. we have this feed of cold air coming in across the uk. running into that, this weather system. we could see the rain turning into the snow in the south. over the hills of south wales, the moors of the south—west. as we head into the evening rush—hour across the south midlands and east anglia, the south of england, some sleet and snow possible. one to watch. further north, more likely to get some snow, especially in scotland. really poor weather over higher level routes. some snow into north—west of england as well. it will feel cold, given the strength of the wind. as the wintry mix tends to push away, could
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leave us with scenes like this after dark. widespread frosts, some potentially icy conditions overnight and into friday. friday seeing an arctic blast of cold air across the uk, with some wintry showers. could see some wetter weather down the north sea coast into the south—east. showers out of the north—west. these are the numbers, remember the strong wind, it will feel much colder. hello. it's wednesday. it's 9am. i'm victoria derbyshire. welcome to the programme. which top british pop artist tickets are being sent directly onto resale ticketing websites at higher prices? we will exclusively reveal who it is at 9.15am. we're guided by our morality and if there is no problem doing that, why don't we know who the artists are? also today, as president obama makes his farewell speech to the american people yet more revelations about his successor donald trump emerge.
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obama said he was leaving behind a better and stronger country but he warned there was more work to be done in tackling racism. after my election there was talk of a post—raceal america and such a vision, however well intended, was never realistic.
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