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tv   World Business Report  BBC News  January 16, 2017 5:30am-5:46am GMT

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this is bbc world news. the headlines: donald trump has outlined his foreign policy priorities in an interview with a british and a german newspaper. he talks about smart trade, not free trade, how brexit could be a great thing, and a possible nuclear deal with russia. the special prosecutor in south korea is seeking an arrest warrant for the head of the samsung group. jy lee is accused of bribery. it is alleged the company paid millions of dollars to foundations backed by a friend of president park geun—hye. horrific details have emerged from brazil of the violence in the alcacuz prison, in the city of natal. authorities say at least 26 prisoners were killed by fellow inmates from a rival criminal faction. many had been decapitated. kyrgyzstan said at least 32 people, including six children, were killed when a cargo plane crashed near bishkek airport. the plane was on its way from hong kong. the cause of the crash is unknown. now for the latest financial news, with sally bundock
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and world business report. taking aim at bmw, the president—elect threatens the german carmaker with huge tariffs, as he reveals more about his plans for the world's biggest economy. and we take you to silicon valley, to find out what the world's biggest players in technology are doing to get ready for the trump presidency. we will also have more on that story just mentioned, an arrest warrant issued for the de facto boss of
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samsung. the us president—elect, donald trump, says he will offer britain what he calls a quick and fair trade deal within weeks of taking office. his comments come just days before a speech by the uk prime minister, theresa may, where she is expected to reveal further details of the country's strategy as it prepares to leave the european union. speaking to the times newspaper, mr trump said his team would work very hard to get it done quickly and properly, and it would be good for both sides. mr trump went on to say the uk had made the right decision in leaving the european union, and that further countries were likely to follow in britain's footsteps. meanwhile, in a separate interview with the german newspaper bild, the us president—elect threatened bmw with a 35% border tax for cars manufactured in mexico. last week the german carmaker said it was committed to its plans to open up its new factory in san luis potosi, despite mr trump's persistent warnings. dr brian klaas is a fellow in comparative politics
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at the london school of economics. good morning. good morning. there is so good morning. good morning. there is so much to talk about. he had a lot to say in that interview. let's start with the tariffs on bmw, to begin with. what do you think bmw is thinking about that, and is it likely to happen? there are two backsides to the story. one is whether it will happen. i think senate republicans will put up barriers, when many of them believe in free trade. the second aspect to the story is how this will play for us manufacturers. america is a global player in the economy as well so global player in the economy as well so is there going to be a retaliation from other countries if trump tries to pursue this policy of punishing individual car makers for their decisions to allocate their resources as they best see fit. their decisions to allocate their resources as they best see fitm is interesting, because we saw ford and fiat—chrysler say they would
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perhaps put on the backburner their plans to move to mexico. it is interesting how businesses worldwide are having to react to this president—elect. his tweets, his comments, his interview last night. it is, in the words of the president really matter and send clear signals but one thing that is troubling is that trump and signalling very clearly that he will choose winners and losers in the economy. that is not good for the economy because you have uncertainty, rather than waiting for that last tweet to determine where to invest. interesting to see what he had to say about brexit, about the us, uk trade relationship and michael gove being part of the interviewed him, as it were. which is interesting. give us your take on that. he seems to say that it will happen quickly and smoothly but in reality that is often not the case. i think the us uk trade deal would certainly be good for britain but we have to put it in context. first up, written and the us are not the largest trading
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partners. written has most of its trade going to europe and 10% or 15% going to the united states so this will not be a huge game changer for the united states. but it is still good news. however, how quickly can get done? most trade deals in the past have taken between four and eight years to actually ratify and put effect. nafta took four years, the dpp took eight years. the idea that there would be some quick policy change is unlikely —— tpp_ theresa may doing a speech on brexit this week, and the markets reacting. but on china, trump called it not free trade but there are or smart trade. give us your take on these comments. i think trump and signalling he wants to drastically shift trade policy but trump doesn't get to do this alone. so trump is to find common ground with establishment figures both in the
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republican and democratic party but particularly the republican party and many of them are the most hawkish on free trade, particularly in the senate. so the idea that trump will come in and change trade policy alone is not true. i think the us presidency often gets blamed too much for the economy and gets too much for the economy and gets too much for the economy and gets too much credit for the economy. it doesn't exist out of trump's hands and it is something where he will have an influence on it, but he is not going to dictate it. thank you for your time, lots more on that story on our website. staying with the us and donald trump, and we assess how the vast us technology industry is preparing for the new president. it forms a huge part of the us economy, accounting forjust over 7% of the value of goods and services produced there in 2016. our technology correspondent rory cellan—jones has been to san francisco to find out what the tech sector thinks of mr trump's policies. san francisco, in effect the capital of silicon valley and the epicentre of silicon valley and the epicentre of the technology industry. looming over everything right now is the
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prospect of a president the majority of californians did not vote for. one tech firm, the memory of his election still hurts. it felt like someone died in the family. it felt like 9/11. everyone was in shock. we are kind of in a bubble in the tech industry. we thought hillary was for sure going to win and the next day trump wins, and you have to wonder, what is the rest of america like? this company's owner, michael birch, arrived here from the uk but is now an american citizen and trying to be positive. one thing that silicon valley certainly is is very innovative, so in the face of what is happening with trump, i think we will innovate around it and find a way to go forward. during his campaign, donald trump was exactly friendly to the tech business. what i think you want to do is boycott apple. and his positions on immigration and trade caused concern in this globalised industry. but there is an upside. like a number of
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tech giants, apple has one good reason to be optimistic about donald trump. he could offer them a deal to bring billions of dollars of cash held overseas home at a favourable tax rate. but the price of that could be increasing pressure to build the iphone in the united states rather than china. if he can maintain the cost for the consumer, sure. but i don't think that's possible. i think it will be great. the more the merrier, for being in america, being made in america, yes. whatever their reservations about him, the bosses of apple and cluster of other tech giants had profitable meeting with him. america's most dominant technology journalist says they should be far more robust.|j think they have to be outspoken in ways they have not been comfortable being outspoken before, on issues of privacy, immigration, encryption. all kinds of things that have been very important to their employees.
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these are the most powerful people on the planet, and the richest as well. so they have nothing to fear by expressing themselves. at the tech industry's big hope is that the new president will come to see that it is going to underpin america's future prosperity, and let it get on with thejob. shares ofjapanese airbag maker ta kata are tumbling, after they announced a deal with the us government. the company pay $1 billion and plead guilty to criminal wrongdoing over the airbags, which have been linked to multiple deaths. shanijit leyl is in singapore for us. nice to see you. what is the detail? well, the details are that those shares are down over io%, and that is, bear in mind, aftersoaring more than i6% on friday ahead of that announcement you just mentioned. the fa ct announcement you just mentioned. the fact that us officials saying on friday takata had essentially agreed to the settlement over the defect
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involving its exploding airbags, which were behind as many as 16 deaths and led to the recall of more than 100 million airbags worldwide. the us also indicted three former ta ka ta the us also indicted three former ta kata employees, the us also indicted three former takata employees, bringing the first criminal charges in the scandal. it has caused the auto industry's biggest safety recall. analysts are essentially saying that this agreement may be one step forward for takata, but there are still lots of concerns over the fact that the company hasn't shown when and how it would restructure its company, or pay off its many liabilities. there has been some speculation that they could go bankrupt. takata has been in talks with potential buyers who are evaluating all its many potential liabilities as well. we are watching that stock, currently down over 10%. are watching that stock, currently down over10%. on are watching that stock, currently down over 10%. on the other big story coming out of asia today is the special prosecutor in south korea seeking an arrest warrant for the head of the samsung group, for
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his role in a corruption and influenced peddling scandal. hy lee is accused of bribery in connection with the national pension service, supporting the merger of two samsung affiliates. it is said he paid bribes totalling a0 billion yuan, thatis bribes totalling a0 billion yuan, that is to a friend of president park, at the centre of an escalating corruption scandal. the pound sterling on the way down against the dollar, 1.6% versus the dollar since it was reported in the sunday times about what the prime minister will have to say in her speech this week about brexit, it would seem a hard brexit is what is expected. asian shares falling across the board with a much weaker dollar against currencies such as the japanese yen. i will see you soon. northern ireland's devolved government is set to collapse today,
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after sinn fein insisted again they would not replace martin mcguinness as stormont deputy first minister. our ireland correspondent chris page reports. for a week, a part of the uk has been without a functioning government. when martin mcguinness of sinn fein resigned as northern ireland's deputy first minister, he automatically put the democratic unionist party leader arlene foster out of herjob as first minister. that is the way the power—sharing system works. the party's relationship finally failed over a financial scandal involving a green energy scheme. but the partnership between unionists and irish republicans has always been an easy. there are many disagreements between them. the stormont stalemate means an election is likely in the next few weeks. however, the british and irish governments have held talks with the parties to try and avoid
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that. but, with no sign of a breakthrough, a breakdown is looking imminent. today at the northern ireland assembly, the dgp and sinn fein have been asked to nominate new members for first minister and deputy first minister. at sinn fein say they will not do so so the devolved government will officially collapsed. the law says the northern ireland secretary james brokenshire at must call an election within a reasonable period of time. negotiations to try and restore power—sharing would follow but no one believes it would be an easy process. devolution has lasted for almost a decade in northern ireland, at stormont may not survive its most serious crisis. coming up at 6:00am on breakfast: charlie and naga will have all the day's news. they will also have more on why doctors say a system in place to review gp referrals can lead to dangerous delays in diagnosis or treatment, and involve people who have never seen a patient. donald trump has outlined his
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foreign policy priorities in an interview with a british and a german newspaper. he talks about smart trade, not free trade, how brexit could be "a great thing", and a possible nuclear deal with russia. the special prosecutor in south korea is seeking an arrest warrant for the head of the samsung group for his role in a corruption and influence—peddling scandal. kygyrzsta n kygyrzstan says at least 32 people we re kygyrzstan says at least 32 people were killed when a cargo plane came down near an airport. because of the crash is not yet known. —— the cause of the crash is not yet known. now it is time for our news review. here's the next president of the us,
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in an interview with the times. in it donald trump said he'd offer britain a quick trade deal, he'd agree to a nuclear weapons reduction deal with russia and he'd start off by trusting vladimir putin and germany's angela merkel, but he said that may not last long. the world economic forum in davos is being held this week. the china daily looks at president xi jinping's attendance, reporting that he hopes to inject positivity into the recovery of the global economy. facebook is trying to crack down on fake news in germany, with fears false reports may sway voters ahead of elections there this year. the ft reports questionable articles will be analysed by a third


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