tv World Business Report BBC News January 27, 2017 5:30am-5:45am GMT
this is bbc world news, the headlines: a proposal from the white house to fund president trump's planned border wall with a 20% tax on imports has been criticised by mexico's government. it warned the tax would only make products more expensive for americans. the british prime minister, will become the first foreign leader to meet president trump later on friday. she's expected to open discussions on a possible free trade deal to be agreed after the uk leaves the european union. the gambia's new president, adama barrow has returned home to scenes ofjubilation. this was the first peaceful tra nsfer of ofjubilation. this was the first peaceful transfer of power in the modern history of the country. his predators had to be pressured to step down by neighbouring countries. -- his step down by neighbouring countries. —— his predecessors had to be pressured. hundreds of millions of people across east asia are preparing to celebrate lunar new year. in an attempt to fight air pollution, the chinese authorities are taking steps to limit the sale of fireworks in cities and some provinces. now for the latest financial news with aaron heslehurst and world business report.
talking up transatlantic trade. but these days is the ‘special relationship‘ simply more special to britain than it is to the us? and when is a $5.3 billion profit in three months just not enough? we'll tell you why investors are not happy with google and also find out if its parent company alphabet‘s other bets will pay off? welcome to world business report. i'm aaron heslehurst. we have the friday feeling and if you are watching for the first time, stay where you are, we have a snapshot of the latest in the world
of business and money. we will also discuss the year of the golden rooster. but first, we start in the us where, as you have been hearing, uk prime minister theresa may will become the first world leader to meet president trump when they hold talks later today. mrs may has called on the president to renew the ‘special relationship‘ between the two countries. she is keen to show britain can prosper outside the european union — so lining up a post—brexit trade deal is high on her agenda. but is it really a priority for the us? let‘s show you some of the numbers involved. in terms of individual countries — the united states is the uk‘s top export destination. britain sold goods and services worth $125 billion to the us in 2015. that‘s 17% of all its exports. ta ken together though, the european union is by far britain‘s top export market, worth $280 billion. 44% of britain‘s total exports. any drop in those exports as a result of brexit could see
britain relying far more on the us. but have a look at this. britain is far less important to the us than the us is to britain. america sold $65 billion of goods and services here in 2015 — half the amount that went the other way. and to put that in the context of the vast us economy, that is little more than 4% of total us exports. and less than half a percent of us gdp. so putting aside the warm words, will this really be a priority for the white house? we‘ll be getting the views of an expert in just a moment. first here‘s samira hussain we are excited that prime minister may is coming on friday. we look forward to it. it may not seem like it but president donald trump and
prime minister theresa may have a few things in common. their rise in power was fuelled by populism and the establishment rejection. another hoped to create bilateral treaties. he will talk to the prime minister and have a great conversation about the potential for greater trade with the potential for greater trade with the uk. the pressure is on. brexit negotiations are imminent. and nailing down a trade agreement with the us would give theresa may a big boost back home. because of these strong economic and commercial links and our shared relationship, i look forward to pursuing to talks with president trump and his new administration about a new uk us free trade agreement in coming months. the fact she is the first world leader to visit the white house under a trump administration is perhaps a testament to britain‘s special relationship with the united states. i am meeting with the prime minister tomorrow, as you know.
great britain. so i am meeting was her tomorrow. i don‘t have my commerce secretary and they want to talk trade. i will have to handle it myself. which is ok. there you go. stephanie hare is an independent political risk analyst. thank you for being here. he will handle himself, right? looking at those numbers, it is astonishing. just 4% of us exports come over here compared to what we, as is the australian to be american, we ship over there. if they can deal the table, they do a big deal, can the us make up for the void if we lose out on the union? theoretically, sure. what is likely in what is probable? the fact that the matter is that if you were to take the trading relationship between the united kingdom and the eu and the
united kingdom and the eu and the united kingdom and the eu and the united kingdom and the united states and remove the labels and look at the numbers you would pick the with the numbers you would pick the with the eu everytime. and, yet, we have had a vote where we are leaving the european union and now we are in a position where we have to leave an extremely advantageous trade relationship and make up for it with other deals. the prime minister has a job on her hands. president trump as saying that he will do this himself but we know that today it is just talks between the leaders. they won‘t do anything, it is just about the team of negotiators. as the uk have the right people in place to make, to do the negotiations without being eaten alive by your lot? the united kingdom does not have sufficient numbers of trade experts right now and at what is worrying, of course, is that they had to do trade negotiations with the eu and the other 27 member states and now, potential, with the united states. so, again, it is sort of like entering a boxing ring with one arm tied behind your back. and how about
the us boxer? they have some of the best trade negotiators in the world. 0k. 0k... best trade negotiators in the world. 0k. ok... that is reassuring, isn‘t it? what will success look like for these two today? success will look like the two of them being able to come away making some reassuring noises about the special relationship. we can expect to see the uk prime minister talking about that, that she has made her point and she is coming back with her red white and blue brexit deal, getting a good value the united states. like chamberlain walking off the plane backin chamberlain walking off the plane back in 1938, 939...? she chamberlain walking off the plane back in 1938, 939. . . ? she is chamberlain walking off the plane back in 1938, 939...? she is quite constrained in terms of what she can do to the next two years. until the united kingdom leaves the european union cannot formally negotiate any other free trade union agreement. we need the uk to trigger article 50, go through brexit, formally leave the eu and only then can we formally
negotiate. there will be talk behind the scenes and that is what is happening today. donald trump, he can talk about anything and say things and we have all learned that what he tends to say things like he is floating a balloon, he can walk things back. he will make noises that make him seem positive. but i don‘t think it will really be worth the paper it‘s written on. we need to see what is going to in two years time. as an american living in the uk, do we matter? is britain mattan to the us? it is always good to have friends in the world. very diplomatic. —— —— does britain matter to the world? when is $5.3 billion profit in three months just not enough? when you‘re google, it seems. the parent company of the internet giant saw its shares fall in after hours trade after its quarterly results disappointed investors. as dave lee reports from san francisco, there are concerns about a slowdown in the growth
of online advertising and just how future proof the company may be. we call it picks cell. the final three months of 2016 were important for google. it launched a new smart phone range and went big with its new voice—activated system. the company did not break out the numbers to those new devices so it is difficult to know how they perform. o‘hailpin chief executive said he was comfortable with the direction things were going with the new products. he will lead them to succeed. the revenues of alphabet which are at 22% on this time year still rely heavily on earning money through google‘s advertising. it‘s even more of us turned to mobile computing people are tapping on google ads more than they used to. but advertisers of paying less per click than before. aside from google, alphabet has what it calls
its other bets. things like superfast broadband, self driving cars, smart thermostats. the revenue of those is double compared to this timea of those is double compared to this time a stupid overall in the last three months those bets collectively lost the company $1.1 billion. let‘s go to asia finally — where tomorrow marks the start of chinese new year. it‘s the year of the golden rooster. roosters are supposed to be hardworking, confident and talented but can be vain and arrogant with a tendency to boast. and they have a tendency to ruffle feathers. does this look like anyone? rico hizon is in singapore. rico, gon xi fa cai! there you go. thank you. happiness and asperity for you, aaron. right back at you. the year of the rooster... you have been speaking to an astrologer? is that right? that
is right. you know what? we are leaving the year of the monkey which was full of mischief and unexpected outcomes in 2016. let us all welcome the year of the rooster. here it is. 2016 was bad and according to the astrologers i spoke with 2017 will bea astrologers i spoke with 2017 will be a year of disruption, transformation, conflict and revolution. and if you take the most important link here is the combination of china‘s leader, us leader and russian leaders. they we re leader and russian leaders. they were all born in the year of the rooster. the big question is will they be able to work with each other because this will surely dominate global markets. but if you take a look at the business side in the near term, build lunar new year and the biggest human migration in the world, citizens get a seven—day
break and much of the economy will come to a halt. many people will return to their home towns or visit families and travel overseas. this is big money going forward. 0k, rico. please put your rooster away. we will be back later and you can follow us on twitter. the royal college of surgeons has decribed plans to restrict some hip and knee operations in worcestershire as ‘alarming‘. three clinical commissioning groups want to save money by reducing the number of procedures carried out. but they say the area would continue to do more surgery than many other parts of the country. andy moore reports. hip and knee operations can be a godsend to the people who get them. they are also expensive, up to £6,000 each. three clinical
commissioning groups in worcestershire wanted to reduce their annual bill by £2 million because they said they were spending far more than other areas. it is reported that they considered restricting operations to those who are in such pain they could not sleep. in the end they did not go that far but it is understood that those criteria are used in some areas. a spokesman for the organisations to the over 50s said that being counters should examine their consciences. he said it was an outrage to even suggest that inability to sleep should be to decide eligibility for an operation. the royal college of surgeons said it was worried that this example of health rationing is only the tip of the iceberg. statement went on to say it is another example of how the huge financial strain that the nhs is currently under is directly affecting patients. health spokeswoman worcestershire said that many patients would benefit from physiotherapy and weight loss before
considering surgery. she also said there was a clear appeals system. coming up at 6am on breakfast, charlie stayt and steph mcgovern will have all the day‘s news, business and sport. they‘ll also have more on the tragic experience some parents have to endure when their babies are stillborn. breakfast meets one mother who is campaigning for a change in the law so her loss can be recognised. that‘s breakfast on this channel from 6:00. i‘m james menendez. the top stories this hour: the white house has said president trump may impose a tax of up to 20% on imports from mexico to help pay for his planned border wall to keep out illegal immigrants and drugs. the mexican economy minister has said the idea won‘t work because it willjust put up costs for american consumers. the british prime minister, theresa may, has said britain and the us should not return to what she called the failed interventionist policies of the past.