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tv   BBC Business Live  BBC News  January 31, 2017 8:30am-9:01am GMT

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this is business live from bbc news with rachel home and sally bundock. as many big us businesses rally against president trump's travel ban, will he be able to get them back onside with lower taxes on their overseas profits? live from london, that's our top story on tuesday 31st january. with $2.5 trillion stashed overseas, can america's biggest companies be convinced to bring it back and boost their own economy? also in the programme, jitters in japan. profits fall at canon and sony sees a big write—down on the big screen. the ftse 100 up slightly, the dax the ftse100 up slightly, the dax is flat. and, how a wine industry is trying
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to put lebanon's vineyards back at the top table. and, bad maths skills could be costing us as much as £1 billion a year. let us know, have your maths skills ever resulted in you getting a bad deal? just use the hashtag #bbcbizlive. welcome to the programme. us president donald trump has only been in office for 12 days but he's already turned every presidential convention on its head. temporarily banning immigration from seven countries may have emboldened the president's supporters but it has been condemned by many nations. leading experts now say those international relationships could be further tested and even result
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in a trade war if mr trump follows through on his radical plan for tax cuts. there are around $2.5 trillion worth of us profits currently overseas held by some of the biggest us companies like google, microsoft and apple that would get hit by some of the highest tax rates in the world at 35% if they were repatriated now. donald trump has "proposed" three areas of tax reform. a "one—time tax rate of 10%" for companies bringing money earned in other countries back into the united states, he's also talked about a cut to 15% in us tax rates to improve competitiveness, and potential border taxes on firms that outsource production of goods abroad. with me is our business editor simonjack. you were talking to some of those in
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the know about this recently. businesses have been very enthusiastic about the proposed tax reforms? yes, the less tax a company pays, the more of its own profits it gets to keep, and the more valuable the company is, and you have seen share prices rise since the election. but crucially, trillions of dollars are held overseas, and getting those back, there is a massive disincentive. the chief executive of the boston consulting group sits on donald trump's policy forum, he explained what is keeping the money overseas. that creates a discouragement to bring it back, you leave it overseas, you show bring it back, you leave it overseas, you show higher earnings, because you have not pay taxes on it, but the money cannot be put to
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work in the us, so it creates challenges the companies. most of the rest of the world does not operate that way, and there has been pressure for years. it is by both parties, the system is antiquated, but the gridlock has prevented any action from being taken. trillions coming back into the country would be good for the economy? it depends on what you have it. if it came back into the country and you put it to work on building factories and hiring people, that would be one thing, but some people fear if they buy back shares and the financial engineering with it... depends. you would see the dollar shirt as well. if you move to put $5 trillion in a short order, something will happen, there will be some sort of disturbance. christopher smart is a former adviser to barack 0bama, he explained what the problems could be. the potential is for a great deal of
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instability, both on the financial market side and on the political side. for the financial markets the issue is a large amount of money destabilising things, but the political issue has to do with the potential for retaliation, and areas that we have been removing start going up again, it could lead to a trade skirmish. this is the problem. people cannot figure out whether donald trump is good or bad for american business. we have this story about washington state following through with legal action against the travel ban that was signed off last week. companies are unsure what it will mean for them. there is no such thing as a tax free lunch. anybody that has you reform is simple is crazy, occurs lots of administrations have tried to address the issue, without success. businesses are cheering
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less regulation and lower taxes. putting boulders up, that is the one thing that could throw sand in the engine of the global economy. and the travel ban. you have seen some of the big tech companies come out strongly against this, google, people walking off campus. we knew that tech was anti—this in the first place. what is more interesting, some of the big banks are getting involved, sending a text to the goldman sachs employees, saying, diversity is at the heart of what we do. business was excited about tax and regulation reform, but these barriers being erected, they think it might be a barrier to trade, and that is what might go the wrong way for them. a lot more from simon on our website. in other news. royal dutch shell says it will sell some of its uk north sea assets
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to the oil company chrysaor for up to $3.8 billion. around 400 staff are expected to transfer to chrysaor once the deal, which is subject to regulatory approval, is confirmed. deutsche bank has been fined $630 million by us and uk regulators for failing to detect and stop a russian money—laundering plan. under the scheme $10 billion was moved illegally out of russia via share sales. deutsche bank says it is cooperating with regulators and has put aside money to cover the cost of the settlement. japan's central bank has finished its first meeting of the year by leaving interest rates unchanged, but upgraded its forecasts for the world's third—biggest economy. the bank of japan cited rising exports, easy lending conditions and stronger government spending ahead of the 2020 olympics for the improvement. the strong yen is causing difficulties for some
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of japan's biggest companies. they are feeling the pain today. sharanjit leyl is in singapore. it is causing problems. some of the biggest names in corporate japan are posting results, and it is a less than stellar report card. we heard from canon, their profit tumbled in the last three months of last year, hurt by the strength of the yen after the brexit decision. its operating profit fell 25%, following the uk's vote to leave the eu. we have heard from sony, it is more than just the sony, it includes
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movies. their movies failed to excite cinemagoers at the global box office, so they are having to take a hefty write—down on the value of their movie business. it is due out with its results this thursday. their movie business. it is due out with its results this thursdaylj did with its results this thursday.” did see angry birds, but i was not their target audience! us stocks saw their biggest selloff yesterday since the american election. the markets looking unnerved by president donald trump's travel ban and protests. the dollar was down and the japanese currency the yen and gold gained as investors looked for safe havens. a rise in the yen often pulls down the nikkei, and you can see its biggest daily decline since november. in europe, figures out this morning showed an unexpected fall of almost 1% in retail sales in germany for the month of december. however, this indicator
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is often revised. but let's find out what's ahead on wall street today. the federal reserve, america's central bank, starts its two—day policy meeting on tuesday. the fed has forecast three rate hikes this year, but it is expected to leave rates unchanged at this meeting. this is the first since donald trump became president. the fed lifted interest rates in december by 25 basis points. apple will be reporting earnings on tuesday. it seems the revamped iphone 7 will give the tech company a boost. apple is predicting record—level revenues for this quarter. analysts will be looking out for comments on the smartphone industry and expectations for the next iphone. finally, exxonmobil, the world's largest publicly traded oil producer, will be benefiting from rising crude prices and it should be reflected when it reports fourth quarter
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results on tuesday. joining us is james quinn, group business editor of telegraph media group. a busy time in the us, it seems to be orientated and around the us, especially with asian markets closed. markets yesterday were focused on the travel ban, imposed late on friday, eight. have a chance to react friday. the dowjones having its worst day since the president was elected in november. the bump was surpassed last week, but now investors are questioning whether or not the momentum can to —— continue. whether or not the momentum can to -- continue. it is only a little bit down. not terrible, it is all about
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momentum. a slew of results coming out today from corporate america and over the next week, so we will get a test of how the big culprits and the economy are doing, as opposed to whether the president will be good for the economy, the hopes and dreams. what impact are we expecting the president to have? there is the question of whetherjanet yellen can remain as federal reserve chairman, thatis remain as federal reserve chairman, that is up to the president and congress. the fed will take a balanced view and hold rates. a rate hold is expected from the bank of england as well. central-bank week. it is also tech week. we have snapchat‘s parent compa ny‘s
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it is also tech week. we have snapchat‘s parent company's ipo. it is also tech week. we have snapchat's parent company's ipo.m you are a central bank watcher and a tech watcher, this is your week. we will see you again soon. he got away with me asking about his maths skills, we will tell you why later! still to come. we'll get the inside track why wine is making a comeback in lebanon. you're with business live from bbc news. britain's commercial aerospace industry is celebrating its sixth successive year of growth, that's according to figures released this morning. more than 1,400 planes were completed in 2016, and it raised £27 billion for the uk economy. paul everitt is the ceo of the trade body ads. what could happen once brexit kicks
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in? we do not tend to produce whole planes in the uk, we are integrated ina european planes in the uk, we are integrated in a european system. brexit will be a big challenge for us. we have a long cycle industry and we have record order books are fed of us, something equivalent to seven or eight years of work at current rates. it is not an immediate problem, but we need to use the next two years to get the conditions right for a successful brexit, both for the uk right for a successful brexit, both forthe uk and right for a successful brexit, both for the uk and our european industrial partners, because we are an integrated industry, with complex supply chains, so for us the brexit negotiations are important, but we believe they can deliver a successful outcome for our industry. can you be specific about what a successful outcome is? is that being out of the customs union or being firmly in the single market? there
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are firmly in the single market? there a re key firmly in the single market? there are key priorities. the number one is remaining part of the european aviation safety agency, the regulatory regime for aerospace in europe, because that, in addition to providing our route to market, it is the organisation that negotiates technical equivalence with major partners in the us, china and other parts of the world. the regulatory regime is important, and achieving this frictionless trade is also important. we are not impacted by ta riffs important. we are not impacted by tariffs in the way the car industry is. the cost and administration of multiple border crossings, because our supply chains are integrated, our supply chains are integrated, our products are developed and produced in many sites across europe before being brought together either here and then exported out elsewhere... thank you very much for your time this morning. so good news for the
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british aerospace industry. you're watching business live. our top story: as many big us businesses rally against president trump's travel ban, one of his top economic advisors tells us that they should repatriate billions in overseas profits so they can put that money to work. a quick look at how markets are faring. they have been open for 45 minutes and you can see actually they are all in the green. we mentioned some retail sales figures out in germany which were disappointing for december, but it doesn't seem to have had that much of an impact on investors. now, think of the global wine industry and places like france, california and south africa will probably spring to mind, but one of the oldest wine industries in the world is to be found in lebanon. the country's civil war caused a lot of disruption for the sector. well, now there is a revival of interest and our next guest is part of that. he's the boss and head wine—maker of domaine des tourelles.
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the company was founded way back in 1868 by a french engineer, making it the oldest winery in the country. it's thriving, producing 300,000 bottles of wine a day and 350,00 bottles of the local alcoholic drink, arak. sorry 300,000 bottles a year. but just think about this — the syrian war is raging just 20 kilometres away. faouzi issa is managing director and head wine maker at domaine des tourelles and joins me now. there is two families that run this company now. yes. and you are from one of those families? yes, we are two families running the winery. we area two families running the winery. we are a committee of four younger team all from the 30s, so we are the youngest team running the oldest
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winery. i bet you'd love to be making 300,000 winery. i bet you'd love to be making 300 , 000 bottles winery. i bet you'd love to be making 300,000 bottles a day.” would be the leader worldwide!m making 300,000 bottles a day.” would be the leader worldwide! it is an interesting story. it goes back many, an interesting story. it goes back any an interesting story. it goes back many, many years with the french influence at the beginning, but now it is purely a lebanon wine grown by two lebanese families, isn't it? domaine des tourelles is a wine that was the first winery to launch a ready bottle to the market because at that time it was producing wines for the monks. today, we are putting lebanon back on the map by producing high quality wines and most of the people everywhere in the world, they don't know that lebanon has wine. well, that's what i was going to ask you. being in lebanon, it is not a traditional wine making region. what specific challenges do you face
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being based in lebanon? it's a fabulous work because you are really taking something exciting, something sexy to the world. tell them, listen, you know, all the negative things maybe about this region, but come on, taste some good wines. taste some great potential we produce in lebanon. this is what we're produce in lebanon. this is what we' re really produce in lebanon. this is what we're really trying to make and we're really trying to make and we're succeeding. we're in 17 countries today. your vineyards, where you are, is eight kilometres away from an enormous refugee camp full of syrian refugees. you are keenly aware of the 1.5 million refugees in lebanon. your population is over four refugees in lebanon. your population is overfour million. refugees in lebanon. your population is over four million. what impact does that have, if any, on what you do? the security impact, but globally, i mean, that's fine. i mean we are the closest country to syria so we are the number one responsible country to solve their problems. if they want shelter,
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we're ready to cope with this. there is no direct impact on our business exactly, but of course, on in the long run it might be catastrophic. you can't employee any of the refugees, can you, because they haven't been processed and they're not in that position? no. syria is one of your main markets, you export to syria? we export a lot to iraq as well. now days a syria, big quality industries are down. they stop producing so they are importing lots of niche products from lebanon. tell me about your arak, how many bottles of arak do you produce and tell me about the aniseed ? of arak do you produce and tell me about the aniseed? we produce 300,000 about the aniseed? we produce 300 , 000 bottles about the aniseed? we produce 300,000 bottles of arak a year. we are the leaders in the market, in the niche category. we use anna seeds. it is a cocktail, isn't it? it isa seeds. it is a cocktail, isn't it? it is a spiritment we use it for
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cocktails as well, the lebanese spirit, the lebanese national spirit is the arak. and you have had to start growing your own aniseed? because of the problems in syria, i launched my new plantation and last year we had the first produce and it was amazing, amazing and i think we will divert to lebanese aniseeds very will divert to lebanese aniseeds very soon will divert to lebanese aniseeds very soon and i hope that we will play this, we will play a role of diverting aniseeds plantation from syria to lebanon. well, we shall keep an eye on what you're up to. thank you for coming in. it is fascinating and i know your wife is watching you in lebanon. just say hi. hi ruba. the whole family is tuning in. it has been good to have you. in a moment we'll take a look through the business pages but first here's a quick reminder of how to get 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
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with all the latest details with insight and analysis from the bbc‘s team of editors around the world and we want to hear from you too. get involved on the bbc business live web page. on twitter we're at bbc business and you can find us on facebook. business live, on tv and online, whenever you need to know. no excuses. the story about our maths skills. not many of you have beenin maths skills. not many of you have been in touch. dominic o'connell is with us. it isa it is a revelation? those of us who have to use maths in our work, the bits that we have to use, calculations that we use all the time, they are fine, but the bits that you learnt in school, thaw don't have to put into practise with your work, they fall away and i find it with my kids, if you're talking
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about maths, actually i can't remember that! it is cobwebs. citizen maths is launching this new online course that will allow you to go and refresh your maths skills and get up to speed. very, very useful. a good idea. i'm on it. i'm going to do that. will says mental arithmetic isn't needed since we have calculators on our phones. i don't agree. you still need to know how it works. how about when your phone isn't working? wall street journal, we've got mark zuckerberg trying to reach china. i love the line that he even took a smog jog in beijing? to woo over the communist party. facebook has been blocked since 2009. a lot of people won't remember, facebook was blocked along with twitter in 2009 and they have tried everything to get back in. not only because it is a big market, but
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because of the way that the chinese use their social media. there are some big players here who are really, they use them in a different way, they use them as banking systems and payment systems all done through social media and facebook is worried they are losing a competitive march here. well, losing, they have not got in here. they are worried the chinese having developed all the fantastic extra services on their social media sites will export them to the west and facebook will be unable to survive. do you think that's a worry that's going to become a reality?” do you think that's a worry that's going to become a reality? i don't think that people are loyal to any service. they will go to the one with the best services. facebook itself is vulnerable to a nimble agile competitor and the chin he is are developing them. let's talk about cathay pacific. they are looking to fly on rubbish. they are
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switching to biofuels? they have been working on these for years and yea rs, been working on these for years and years, but they are saying they are going to fly 80% flights just on biofuels. 0ne going to fly 80% flights just on biofuels. one of the hold—ups is safety. if you' re biofuels. one of the hold—ups is safety. if you're a safety regulator, you don't want to certify that fuels are ok. i wonder if you could get a cheap flight and say, "ivm could get a cheap flight and say, "i'm going to donate all my rubbish for six months. can i have a ticket to shanghai?" there have been a lot of questions about the real green credentials of bio fuels, if they are diverting fuel that was meant for crops, are you really saving that much c02? cathay pacific are doing the best they can. thanks, dominic. what's it called citizen maths? that's it. i will test my skills later. thanks for your company. i will see you soon. the weather is looking pretty
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u nsettled the weather is looking pretty unsettled for the rest of this week. some rain in the forecast and things turn windy for thursday and friday. today though, it is not windy, but it is going to be a rather dull, cloudy day with a lot of rain about. some really heavy rain clearing northern ireland as we head on in towards the afternoon. for england and wales, there will be patchy, light rain here and there with low cloud and hill fog. some of the rain will be heavy across scotland through the afternoon. quite a chilly feel to things across eastern areas, maybe a little bit of wintriness over the higher ground as the rain bumps into the cold air. turning less cold across western scotland. a fine afternoon for northern ireland. you should see some sunshine and maybe one or two showers and temperatures ten or 11 celsius, but a grey, damp day for england and wales. 0utbreaks celsius, but a grey, damp day for england and wales. outbreaks of rain. some low cloud and hill fog. still cool across the east of england, but very mild across the
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south—west and in towards wales, temperatures ten to 12 celsius. another ripple of rain runs in towards the south—west and across england and wales overnight. we could see heavy bursts of rain here. even could see heavy bursts of rain here. eve n a cross could see heavy bursts of rain here. even across eastern areas there will be low cloud and hill fog. dry for scotla nd be low cloud and hill fog. dry for scotland and northern ireland. here with light winds, and any clear spells, it could be chilly in one or two places with fog around, but again, a mild night for centraland southern areas. into wednesday then, we start off on a grey note. 0utbreaks we start off on a grey note. outbreaks of rain across central and eastern areas which will clear away. through the afternoon not a bad looking afternoon for many with sunshine developing before the next belt of rain pushes in towards the west. again, double figure values in the south and maybe a touch milder across scotland as well. and then this deep area of low pressure comes hurtling in for thursday. it'll bring a spell of wet and certainly very windy weather across pretty much the whole of the uk. certainly the further west that you are, the winds will be stronger and we will see more frequent heavier showers here, but notice the temperatures,
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double figure values across—the—board. that double figure values across—the—boa rd. that mild double figure values across—the—board. that mild air really will be locked in place. on friday, this vigorous area of low pressure threat ngs to bring some severe gales to the south—west corner of the uk for friday. so a bright start across eastern areas and then the winds, outbreaks of rain really pick up across the south and the west, but it is a long way off and we'll keep you updated on this. hello, it's tuesday, it's 9am. i'm victoria derbyshire, welcome to the programme. this morning, when adoptions break down. families who've had to make the heart—breaking decision to hand back a child tell us why. he was violent towards my wife. she got kicked, thumped, things like that, quite a lot. and quite a lot of emotional abuse to her as well. yeah, and this is from a four, five—year—old kid. we were just shell—shocked, really. and we'll hear from other parents who say they're struggling to cope.
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if you've adopted a child and you're experiencing problems, do get in touch this morning. if you have got over problems, tell us how you did it. plus, this baby chimp has been rescued after traffickers tried
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