tv BBC Business Live BBC News January 24, 2017 8:30am-9:01am GMT
this is business live from bbc news with sally bundock and rachel horne. the united states pulls out of what could be one of the world's biggest free trade deals, but australia and new zealand says that doesn't mean its dead in the water. live from london, that's our top story on tuesday the 24th of january. the tra ns—pacific partnership was set to cover 40% of the world's economy. will the other 11 nations go ahead without the us? or can it be replaced by bilateral deals that donald trump says he wants? also in the programme, despite corruption allegation and exploding phones, samsung records its highest quarterly profit in four years. we'll tell you how. and we'll be getting the inside track on the wearable
tech which doesn'tjust track your heart rate but also tells a woman when she's at her most fertile. when you listen to music do you think about the performer? as jay z sells a stake in his artist led music streaming service, tidal, we want to know, do fans care about the artist or the access? just use #bbcbizlive. welcome to the programme. thank you already for those of you who have tweeted about jay—z, nothing we can say out loud on the
bbc, so send in some comments we can read out! let's first of all start with what is going on in terms of global trade. the united states are out, but japan, australia and new zealand say their big free trade deal can go ahead anyway. the tra ns—pacific partnership was aimed at boosting the economics of 12 nations around the pacific ocean. but the new us president donald trump has used his first working day in the white house to sign an executive order pulling the us out of the deal. the tra ns—pacific partnership covered about 40% of the world's economy and could have added $100 billion to the world economy by 2025. that was what they said and predicted. it was signed by 12 nations in the pacific area at a ceremony in new zealand last year. the painstaking negotiations took seven years, but one reason implementation
was delayed was the failure of the us congress to ratify it. china was the biggest economy to not be included, and it was widely viewed as a way to cement trade relations without beijing's influence. the us under president trump now wants to negotiate trade deals on a country—to—country basis, with a 30—day cancellation clause "in case somebody misbehaves". here's what he said about the withdrawal. we have been talking about this for a long time. 0k. a ok. a great thing for the american
worker, what we just did. that was the president of the united states, donald trump. with me is savita subramanian, head of us equity and quantitative strategy at bank of america merrill lynch global research. you've got a longer title than he has! let's go back to basics, why has! let's go back to basics, why has donald trump polled the us out of this deal? i think he just said it, it is about usjobs, and he is wasting no time in fulfilling some of his campaign promises to create usjobs growth. so i think that, you know, president trump is focused on the us worker, he is focused on bringing backjobs to the us, and the tpp represented a threat to the average us worker. i think this is another example of a policy that is good for the mainstream, not necessarily good for wall street, because if you think about the us stock market, most of them are multinational companies that have expanded margins from off shoring their businesses and setting up
facilities overseas. but i think that trump's motivation and input is here isjobs growth, that that trump's motivation and input is here is jobs growth, that is what he is focused on. and is that the feeling, that it will work? we had figures last week suggesting a huge proportion of thejobs figures last week suggesting a huge proportion of the jobs that america has lost in recent years are due to automation, machines — rather than outsourcing to other countries. outsourcing to other countriesm isa outsourcing to other countriesm is a complicated problem, and the thread of global overtaking the us is not the only reason thatjobs have gone awake in the us. man has been replaced by machines in many industries, which is inherently deflationary, but i think what the administration is focused on at some level is creating some healthy inflation which, you know, protectionist policies generally, initially, inflationary, and good for the economy. the risk is, we importa for the economy. the risk is, we import a little under $500 billion worth of goods from china. our
economy is made up, 15% of it, is exports. so the risk is that, will this cramp growth down the road? it is good for wage inflation and the us consumer, it creates confidence, but will it actually hurt growth down the road? that is what we are more worried about from the market perspective. one of obama's main drivers with the tpp was to try to encourage american influence in this region, and china was not included. is donald trump running the risk of being like the bride who leaves her groom at the altar, everyone else has stepped forward, they are ready to sign the deal, and when he doesn't turn up, in terms of damaging relationships with other countries and leaving a gap for china to come in, is that a concern? i'm nota china to come in, is that a concern? i'm not a political historian or political economist, but i think that, you know, certainly the rationale for tpp initially was to sort of prohibited that thread. i
think, from a market perspective, what this represents is risk to multinationals, and it is probably too soon to say whether the other countries can bind together and create a realistic and powerful union amongst themselves if the us is neglected from it and we try to negotiate one—time deals, if we have enough negotiating power, this could work. ok, thank you very much for joining us. let's have a look at some other stories. shares in bt have fallen by 15% on the news it has taken a hit of around $180 million after uncovering inappropriate accounting behaviour at its italian division. the telecoms giant said an internal review had found a complex set of improper sales, purchase and leasing transactions. bt has now cut its revenue, earnings and free cash flow forecasts for this year and next year. so shares in london down by 15% on
that story. yahoo has posted a 15% rise in revenues to nearly $1.5 billion for its fourth quarter, compared to the previous year. but the once—mighty tech giant is being investigated by the us securities and exchange commission over two massive cyber breaches. yahoo is in the process of being bought by us telecoms giant verizon for about $4.8 billion but has now said the deal won't be completed until at least the second quarter of this year. and back to south korea, where lg display is also doing well. it reported a record fourth—quarter operating profit ofjust over $778 million due to a pick—up in panel prices. the world's biggest liquid—crystal display maker said the profit was caused by the upward trend of panel prices and a favourable foreign exchange rate. we have covered samsung a lot on
this programme recently, and for all the wrong reasons, including exploding phones and corruption claims surrounding the boss of the firm. today we have some good news, because despite all of that, the electronics giant, that side of the business, saw profits jump electronics giant, that side of the business, saw profitsjump by $7.2 billion in the last three months of last year. mariko oi is in singapore, i bet they are breathing a temporary sigh of relief, for now at least, at samsung. indeed, sally, i think it is fair to say that not many were expecting such strong numbers, but samsung managed to more than double its operating profit in the last three months of last year. and that is because it is important to remember that samsung doesn't just make smartphones, we have been talking about the exploding batteries of the galaxy note seven, but samsung also makes chips, as well as panels, and its
semiconductor unit did very well, and it contributed more than half of the compa ny‘s quarterly and it contributed more than half of the company's quarterly profit, and when it comes to smartphone profits, while consumers‘ trust has not been restored yet, some of them started buying cheaper galaxy phones, which helped their profit as well. challenges still remain, including the corruption scandal surrounding the corruption scandal surrounding the company‘s boss. the corruption scandal surrounding the company's boss. thank you very much, mariko, that is the latest on samsung. injapan, the markets down, weak dollar, strong yen, do i need to say it again? this is how things are going generally, the dowjones a little bit flat, but not far off that 20,000 mark. a bit further away thanit that 20,000 mark. a bit further away than it was a few weeks ago. a bit of a disappointment about trump in terms of not enough news about pushing growth, pushing jobs to the us. let‘s look at europe, treading water to a degree at the moment, we
have mentioned bt, down in london for very specific reasons, but eve ryo ne for very specific reasons, but everyone keeping an eye on the pound and the supreme court decision, which is due in about 50 minutes‘ time, that is about whether parliament will get a say on the triggering of the brexit negotiations. news out of france about services sector manufacturing, about services sector manufacturing, a bit ofa about services sector manufacturing, a bit of a drop—off in manufacturing sector in france, but still showing growth. let‘s look ahead to the us, samira hussain is on wall street today. america‘s number one wireless carrier, verizon, will be reporting earnings and it‘s expected to report yet another decline in quarterly revenue, but analysts, investors and journalists will be eager to hear about any updates to verizon‘s deal to purchase yahoo and whether the recent data breaches have the company thinking twice. lockheed martin, the pentagon‘s number one weapons supplier, is expected to report a rise in fourth quarter revenue helped by higher sales
from the f—35 programme, but it‘s that programme that drew fire from president trump who criticised the excessive costs. interestingly, the head of lockheed martin was one of a dozen business leaders that met with president trump at the white house on monday discussion tax reform for corporations and reducing regulations that impede business investment. thank you, samira. joining us is jeremy stretch, we wanted to start with turkey, crete interest rate decision due in a couple of hours, and there is a real conflict between the government calling for interest rates to be dropped to encourage spending, an economist saying, no, we need to curb inflation, give us the figures. inflation is running just above 8.5%, the central bank
target is 5%, and it is going up because of the fall in the currency, it has fallen by 6% against the dollar already this year. we have commodity price pressures as well, which are amplified when you translate them into turkish prices. so inflation moving and very dramatically. that should mean interest rates will go up, even by at least 1% today, but the government is saying something com pletely government is saying something completely different, putting a great deal of pressure on the central bank governor, so the independence of the central bank is really under threat, just adding to the uncertainty for international investors. this is the government of president erdogan, which is one type of leadership, butjust to say that turkey, we are familiar with all the headwinds, mostly geopolitical. indeed, we have seen a substantial deterioration in the economic backdrop, irrespective of the currency movement, a substantial fall in gdp in the third quarter, and with the falling currency, the
wea kness and with the falling currency, the weakness of the economy, it really does and align the febrile atmosphere in the country, when of course you have the inherent political risk which is making investors and stable beyond just the economic dynamics. another big announcement this morning which could impact the markets is the decision on whether or not the uk government can go ahead with brexit from the high court, what sort of reaction do you think the markets are going to have to that? after the speech from the prime minister last week, you could argue that these events have been somewhat superseded, but that is not totally the case, because they could be a risk that the devolved parliaments are going to be given some degree of say by the supreme court. if that we re say by the supreme court. if that were the case, the old brexit timetable could be thrown out of kilter somewhat, and accordingly that march 31 deadline that the prime minister has self—imposed would potentially be under threat, so that would push the whole hard brexit story further into the long grass and could encourage a sterling rally. because scotland and northern ireland, wales as well, all saying
they don‘t want brexit, and that would be their opinion if they were given the opportunity by the supreme court. of course, but not only that, the picture is even more complicated in northern ireland because of the upcoming election, so that delays the process even further. if there we re the process even further. if there were a role for the devolved parliaments, that throws the timetable into doubt. if not, if we are merely left with saying, we‘re going to go back to parliament and the government puts in a short bill, pushing through with it quickly, than the market reaction should be relatively modest, but it is a case of the devil in the detail this morning. ok, jeremy stretch, thank you forjoining us this morning. you‘re with business live from bbc news. and now a look at some of the stories from around the uk. we have mentioned the brexit and the
supreme court ruling. dixons carphone, britain‘s largest electricals and mobile phone retailer, beat forecasts for christmas trading. the group‘s chief executive officer, sebastianjames, joins us now. thank you for making the time to see us. thank you for making the time to see us. i‘m sure you‘re pleased to see us us. i‘m sure you‘re pleased to see us given the results you‘ve issued. why do you think the results went 7 why do you think the results went up? christmas has become promotional trading. since black friday took off, it is about can you put fantastic deals in front of customers. because we‘re big and we plan this a year ahead, we put ground—breaking offers in front of people and i think they reacted well to that. it is about pricing, isn't it? with sterling weakness, are you poised to put your prices up because you will be forced to, frankly? we area bit you will be forced to, frankly? we are a bit different to other industries because our products actually deflate over time. so the same tv, next year is likely to cost thanit
same tv, next year is likely to cost than it did this year. on the other hand new technologies come in and they are not really comparable. although it is a mathematical truth that it will take more pounds to buy more dollars and therefore the kit that we buy, i don‘t think it will feel inflationary to our customers. you said that generating a successful christmas means planning from january. have you started planning from now and are you going to stick to black friday? we have seen to stick to black friday? we have seen lots of companies, some big named companies who didn‘t get involved this year, it did well for you this year, but is that something that‘s going to continue to be part of your strategy? yes, we definitely think it is. we love black friday. we plan it well ahead. we work closely with our suppliers and we do huge volumes during black friday. we sold a dyson cordless hoover every five seconds during our black friday period and it is a promotion that we love. for now, thank you for your time, the boss of dixons car phone. that‘s a company that is doing well. good
results. two companies that have come out with bad thus that have hit markets, bt and easyjet. we‘ve mentioned bt. easyjet though, its shares dropping 7%. it has warned again about its profits being hit by the weakness of sterling. easyjet had to warn before today and another warning coming through from the low—cost carrier. more news on our website. you‘re watching business live. our top story: australia and new zealand have said they believe a big free—trade deal, which america‘s president trump has just abandoned, can be salvaged. the tra ns—pacific partnership would have covered about 40% of the world economy if all 12 signatories had gone ahead. will the 11 go ahead regardless? the
markets are threading water. pretty flat. some sharp movements from companies like easyjet and bt, but keep a close eye on london and the pound sterling as we get that result from the supreme court which is due in about a0 minutes. now let‘s get the inside track on the wearable tech market is only growing. it is. you can use devices to track everything from physical activity to sleep and exposure to sunlight, and it‘s women are the leading consumers in the wearable—tech health space. the wearable tech market exceeded $2 billion in 2015, and is projected to double in 2017. 61% of all devices in the wearable tech market are health trackers, and women make up most users. ava fertility is one company hoping to take advantage of these numbers. so they have developed a bracelet that tracks a women‘s fertility simply by monitoring heart rate.
the company claims it can detect fertile days in a women‘s menstrual cycle with 89% accuracy. joining now is the co—founder and chief executive of the firm ava science which makes the tracking device. she has got it on. you were just looking at it. so what‘s so special about this device? ava is really the first wearable device that you can use to track your menstrual cycle. so far, when a woman wanted to track her menstrual cycle, she had to, you know, pee on sticks ten times a month and get up to ta ke sticks ten times a month and get up to take her temperature and it was really difficult and really inaccurate and now we‘ve solved this with a wearable. just hold it up to the camera, ava, so the viewers can see it. my first thought was, are you going to wear that? it is an
obvious sign to everyone around you that you‘re trying to make a baby and fora woman, that you‘re trying to make a baby and for a woman, a career woman, that maybe not the signal you want to give to your bosses? ava is only worn during the night. so you only wear it while you‘re sleeping and during the nine it tracks parameters. what you do is really simple. you wear it and in the morning you sync with your phone and you have all the information on your phone. this is an emotive area, people trying for a baby. sometimes they can feel vulnerable and they will try anything to make it work. what scientific evidence have you got to try and back up your device? so, really, our researcher is the co re so, really, our researcher is the core of what we‘re doing as a company. we have finalised a first clinical study in switzerland where we can show 89% accuracy. we are running our second clinical study and to further improve the results and to further improve the results and to further improve the results and to broaden the scope of the product. and venture capitalists are
backing you, you‘ve raised $10 million, you‘re established in the us. thousands have bout this device and you‘re launching in the uk and europe. tell us what else can it tell you? europe. tell us what else can it tell you ? can europe. tell us what else can it tell you? can it tell you for example what sex for example? that kind of thing? rachel and i have got six boys between us! you were really successful in doing what we‘re doing! it doesn't tell you that, does it? that‘s just doing! it doesn't tell you that, does it? that‘sjust a mystery? t—actually is a mystery. at the moment there is no research how you can determine the sex of your baby, but really ava is helping you to not only detect your fertile days, but gives you insights in other health per ram terse and it helps you understand how you sleep and your stress levels and the hormonal changes during your menstrual cycle, if you want to understand what signs your body is sending you all the time. very fascinating. thank you
for coming in. lots of interest in there i‘m sure. here is how to keep in touch with us. the business live page is where you can stay ahead with all the day‘s breaking business news. we‘ll keep you up—to—date with all the latest details with insight and analysis from the bbc‘s team of editors right around the world. and we want to hear from you too. get involved on the bbc business live web page. and on twitter. and you can find us on facebook. business live on tv and online whenever you need to know. so far the tweets we‘ve received from you about jay z and so far the tweets we‘ve received from you aboutjay z and tidal, we can‘t say out loud because they are
too rude. near negative. tidalwas can‘t say out loud because they are too rude. near negative. tidal was a music streaming service launched at the same time as others like spotify, but it was regarded as a vanity project forjay z and beyonce. you got beyonce‘s music and that was the reason to do it, but it was a bit of a flop commercially and it was losing $28 million, it claimed it had three million users and spotify has a0 million users and most people thought it only had about one million. they pitched it as this is the artist leading the way here, we‘re fighting against spotify that‘s ripping us off? artists hate spotify. it is hard to get money ot of spotify unless you get money ot of spotify unless you get millions of plays. lots of artists including taylor swift have gone away from spotify claiming it doesn‘t pay them enough. gone away from spotify claiming it doesn't pay them enough. the viewers are not bothered anyway? no, i don't think they are. what they want is cheap music. theyjust think they are. what they want is cheap music. they just want the songs. and preferably for free.
let‘s talk about a happy meal? a—guy charged with reviving mcdonald‘s in the states is a brit who did very well turning around mcdonald‘s ten or 15 years ago. he brought in the fresh food and the better coffee and he was promoted by mcdonald‘s to do the same thing in america two years ago, he replaced a guy called don thompson. one of the things he does is does an all—daybreak fast. it hasn‘t really worked. sales are down 1.3%. wow. give him time. that‘s it from business live. there will be more business news throughout the day. see you soon. bye—bye. good morning.
we‘ve had contrasting weather conditions so far today. it has been mild and cloudy to the north and the west, but fog still an issue, not as widespread as yesterday. however, in one or two spots it may linger for much of the day and if that happens, well then, temperatures will struggle and some of that fog is quite dense in places, but as we go through the day, hopefully it should lift away and we‘ll have a reasonable day across much of england. there will be a little bit of brightness coming through. the temperatures will be disappointing. another coolish feel out there, five to seven celsius. if the fog lingers, temperatures will struggle to climb above freezing. further west, it is a different story. there isa west, it is a different story. there is a lot of cloud around, but it is milder. ten celsius in cornwall. the cloud thick enough for drizzle across north wales and into north—west england. a weak weather front producing patchy drizzle through southern scotland and northern ireland. to the extreme
north of scotland, you mightjust see a window of sunshine here. top temperatures of nine to ten celsius. as we go through the overnight, we keep the west—east divide. more of a breeze out to the west. more cloud and still the odd spot or two of drizzly rain, but in the sheltered eastern areas with less of a breeze and clearer skies, we could see further fog reforming yet again. so that will be slow to clear away during wednesday morning. it will do so. during wednesday morning. it will do so. again, we keep more breeze out to the west, but whether fronts will stay well out to the west really. just a band of cloud and perhaps the odd spit or spot of rain into western fringes by the end of the day into scotland. nine celsius the high here. four or five day into scotland. nine celsius the high here. four orfive celsius across east anglia and the south east corner. as we pull out of wednesday and into thursday, we start to pull in drier air and colder air from start to pull in drier air and colder airfrom a start to pull in drier air and colder air from a south—westerly flow. so a noticeable difference to the feel of the weather. really could be quite nasty i suspect. again, there will be a lot of quiet weather through, but the temperatures in europe for the last
week or so have been very, very cold indeed and some of that cold air will filter its way across the country. add on the strength of the breeze, despite the sunshine coming through and your thermometers reading highs of two or six celsius and when you add in orfactor in reading highs of two or six celsius and when you add in or factor in the strength of the wind some areas will feel below freezing. so wrap up warm! hello, it‘s tuesday, it‘s nine o‘clock. i‘m victoria derbyshire, welcome to the programme. in exactly half an hour‘s time, the highest court in the land will rule on whether parliament or the pm is in control of the uk‘s divorce proceedings from the eu. i will be reporting live problem the supreme court, we will bring you the decision as it happens, and all the reaction from the court. we‘ll bring you that decision live as it happens, and throughout the programme we‘ll bring you plenty of reaction and explain what it means.
iama i am a professor of public law, i am going to explain the meaning of the judgment, not about whether we leave, about how we leave the european union. plus, we‘ll bring you reaction from senior politicians, and our audience of voters are here to give their verdict on the decision. judges are not hell—bent on dismissing