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tv   BBC Business Live  BBC News  November 10, 2017 8:30am-9:01am GMT

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this is business live from bbc news with sally bundock and alice baxter. president trump renews his pledge to rebalance american trade but warns he'll be selective about the deals he does. live from london, that's our top story on friday, 10th november. as 11 countries try to get one of world's biggest free trade deals back on track without the united states, president trump says he will do bilateral deals. we'll be live to the apec summit in vietnam for the latest. also in the programme... japan's third biggest steel—maker blames a lack of control for the scandal which led car and plane makers worldwide to check the safety of their products. and markets in europe are edging higher as traders begin to wrap up
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their working week. we will talk you through the market movers and shakers. and we'll be getting the inside track on all the big stories of the week, including president trump's tour of asia and the slow progress of brexit negotiations. that is all coming up with our economics editor, kamal ahmed. and as one of the founding fathers of facebook, sean parker, sounds the alarm over social media, describing it as a "time—sink", we want to know how the social media phenomenon has changed your behaviour and that of your children. let us know — just use the hashtag #bbcbizlive. a warm welcome to business live, we have the friday feeling today and we have the friday feeling today and we have a lot to pack in so let's get cracking. starting with us president donald trump who had a clear message
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for the leaders gathered at the asia—pacific economic cooperation summit in vietnam, if you want to trade with the world's big economy you will have to reach a bilateral deal. this as delegates from the other 11 countries try to save a deal that he has pulled out shortly after he moved into the white house. if it did include the united states, the tpp would have included 12 countries whose economies are worth some $29 trillion. that is about 38% of the world's economy. but the world's biggest economy, the usa, is so big that without them it's only worth $10 trillion — orjust13.5% of the world economy. the remaining 11 nations would benefit from lower tariffs
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as well as new rules for labour, the environment and intellectual property. but the us retreat from the deal is also providing a big opportunity for china. here's what the us and chinese leaders had to say. i will make bilateral trade agreements with any indo—pacific nation that wants to be our partner, and that will abide by the principles of fair and reciprocal trade. what we will no longer do is enter into large agreements that tie our hands, surrender our sovereignty, and make meaningful enforcement practically impossible. translation: openness brings progress, while self—seclusion leaves one behind. we, the asia—pacific economies, know this too well from our own development experience. we should put in place a regional cooperation framework that ensures consultation among equals, wide participation,
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and shared benefits. karishma vaswani is outside the apec conference in da nang, vietnam. leaders of the two largest economies in the world giving two very different speeches. what did you make of them? yes, i think those two sound bites that you heard from president trump and president xi showed the contrast in what they have to say. on the one hand, donald trump saying he will do business with america at the centre of all of his transactions, america first, and any country that wants to do business with me will have do deal with me in a bilateralfashion. whereas president xi was really talking about china's leadership role in the region, it is about consensus, building opportunity. he mentioned things like artificial intelligence, the digital economy, opportunities for growth, really pushing china out there as a visionary for the asia—pacific region. he talked about the one belt
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one road programme, saying it may be a chinese initiative but it is also one for the world. meanwhile, against the backdrop of all of this, the tpp, the transpacific partnership agreement, with the 11 economies, apec economies that were left behind after donald trump pulled out of the trade deal, are still scrambling, trying to get this massive trade deal through, and we are hearing reports that some kind of agreement may come together at some point today or perhaps tomorrow when this summit ends, but the stark contrast between what donald trump had to say and what president xi had to say i think will be followed extremely closely by members of the apec economies as well as the wider asia—pacific region. considering how conciliatory the town has been that donald trump has struck so far on his asian tour, particularly in china, did it come asa particularly in china, did it come as a surprise when he came out so
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strongly earlier today talking about trade imbalances, product dumping, currency manipulation. he did not name any country specifically. you we re name any country specifically. you were in the room at the time, what was the atmosphere like? well, i think people were expecting him to say something about unfair trade, every single delegate or foreign leader that i have spoken to in the lead up to his speech said they did expect him to kind of present the us vision for itself in the asia—pacific region, but you are absolutely right, he outlined very definitely all the ways in which the us has been a victim of global trade, and all the things that he talked about, currency manipulation, state—owned enterprises pushing economic growth in some countries further ahead, that sounds pretty familiar, doesn't it? he is pretty much making a veiled reference to china without calling china out. indeed. many thanks. we will have more on that later.
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let's have a look at other stories making the news. one of the architects of the clause which allows countries to leave the european union has told the bbc that the british public shouldn't be misled by government claims that brexit can't be reversed. lord kerr was talking as the sixth round of brexit talks get underway in brussels. prime minister theresa may has again warned against efforts to slow or stop the process. china is lifting foreign ownership limits on financial firms. the move will be welcomed by the world's biggest banks who want access to the huge and lucrative market there. foreign firms will be able to controljoint ventures with chinese partners. walt disney has seen annual profits fall for the first time since 2009, amid growing competition from streaming services like netflix. shares, though, rallied after it announced a deal to make three new star wars movies. the ceo refused to comment
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on reports it has held talks on a partial takeover of 21st century fox, but did not rule out making an acquisition. the plot thickens there. the struggling japanese steelmaker kobe steel has blamed a lack of control for its safety scandal. many of the world's biggest car and planemakers have had to check their products because of fake safety data. leisha santorelli is in singapore. kobe steel is something we follow really closely, what have they told us really closely, what have they told us today? well, the japanese government micro had actually ordered kobe steel to provide a detailed explanation of how this cheating scandal could have stretched on for so many years undetected as well as to give measures to... kobe steel released a report in the last hour, the ceo giving a press
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conference, but aside from a lack of control the company has control the company has blamed the scandal on a focus on profits but we have not seen many other details emerge. the kobe steel ceo and other senior executives appear to be staying on at the company, some analysts believe they should step down, that they should resign, to demonstrate that such lapses in management are not acceptable, especially since this has damaged the reputation of corporate japan as well as the trust in the quality of the products coming out of the country. 0k, coming out of the country. ok, thank you very much indeed, the latest there on kobe steel. let's look at the market in general in asia, a fairly flat day is not a bit down. the main market in tokyo closing down by .8%, it was at a 21 year high yesterday, though, so let's put it in perspective. let's look at europe now, everything edging slightly higher, no big moves in either direction. singles day
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tomorrow, the biggest shopping event of the year, it is really what alibaba, less of the year, it is really what aliba ba, less than of the year, it is really what alibaba, less than ten years ago, turned a quirky celebration of single people in china into a massive global shopping grabbing —— shopping extravaganza so companies like alibaba tomorrow will be making billions of dollars of profit in 24—hour was, big event for asia and china in particular tomorrow. samira hussain has the details about what's ahead on wall street today. on friday the department store operatorjcpenney will be reporting earnings. last month jcpenney slashed its full—year forecast after selling some of the inventory that just wasn't moving, and they sold it massive discounts. these earnings really come at a time when the retail industry is facing some tough times. retail giant macy's, kohls and nordstrom all reported earnings on thursday. for example, macy's, while it beat expectations, same—store sales fell, indicating continued pressure on getting customers into physical locations. the credit agency equifax reported earnings on thursday but will only
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be holding their call with investors on friday. really giving wall street time to digest the numbers. this was the first time we'd heard from the credit agency since a data breach that compromised the information of 145 million americans. you can expect that there will be a lot of questions about the company's future going forward. joining us is james bevan, chief investment officer at ccla investment management. wonderful to see you. brilliant to be here, what fun. i went to expand ona be here, what fun. i went to expand on a story we mentioned earlier, the news hot on the heels of donald trump's visit to beijing, china now pledging to open up its financial sector to more foreign ownership. how big a movie this? it is significant, it will not happen overnight, we should expect this to happen over a period of years and the early announcements made by
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china talk about a five—year transition. however, when one thinks about what lies behind it, it is about what lies behind it, it is about china wanting to be part of the global economy in a very real sense. i think a number of the huge us players that have been injoint ventures will now come back. let's talk about the markets in general, another bumper week, it would seem? asia yesterday, at one point vindicate to do five at 821 year high. give us your take on the markets? it goes back to the china story a game, china has been exporting around $600 billion, they have been buying up stock markets, london houses, footballers, you name it, china has been buying it, and it has been a huge driver in terms of market valuation but critically we have had better global economic news, corporate earnings are stronger, thatjustifies news, corporate earnings are stronger, that justifies higher valuations. you say, how high can it go? isaid valuations. you say, how high can it go? i said 2700 points,
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valuations. you say, how high can it go? isaid 2700 points, 18 valuations. you say, how high can it go? i said 2700 points, 18 times forward earnings probably about right, but i equally think there is a risk of a belt of people piling into markets, driving prices significantly above fair value, from which point eventually there will be a correction. and what will that be like when it comes? it will be really nasty. the next bad market will come when we start to talk and think about recession. at the moment we have a lot of economy is set to expand at a fast rate and if we get that upton, we get a policy response, down in global economy, the rich valuations will come down with a big bump. i like that prediction, it is going to get really nasty. not until 2019, we don't want to frighten people. we wa nt to don't want to frighten people. we want to briefly touch on oil, how interested a re want to briefly touch on oil, how interested are you in that?” want to briefly touch on oil, how interested are you in that? i am very interested in oil. when i look at the oil price 82 macro drivers,
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demand driver, how much people buying? and a supply driver, in terms of the global delivery of oil into markets. at the moment i would observe what we are looking at, the concern is more the supply side because of the political movement going on in saudi and tension between saudi and iran. i don't think this price hike we are seeing at the moment will stick but i think those concerns will dissipate. saudi arabia, isn't it, right now? the prices are so high? in the very short term they will fall but what they want is a stable price for long—term planning and cash flow. thanks, james comey you will come back and talk through the papers in a bid. we have a lot on the agenda today. we have a lot on the agenda today. we will get the inside track on the big stories of course one man, maybe two men, have dominated, president trump, president xi jinping two men, have dominated, president trump, president xijinping have pretty much been in the headlights each day. we will talk about that and also brexit talk, all coming up with our
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economics editor kamal ahmed. this is business live from bbc news. the royal society, the country's most respected science academy, says we should be spending ten times as much money teaching children about computer science. joining us now from salford is royal society fellow professor stephen furber of university of manchester. thank you forjoining us on the programme. how serious a situation is this? the problem is there were major changes in the school's computer greg curriculum a few years ago and there hasn't been adequate support for teachers to adjust to the change. the new aspect include aspects of computer science that are challenging and we need more support to make sure teachers can teach it effectively. in terms of how we do globally, how do we compare when it
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comes to investment in computer sciences etc? i don't know the comparative international numbers, but i think we are in the league when it comes to moving to a proper computer science curriculum in schools. the problem is the current setup is very fragile and it's patchy. there are some excellent exa m ples of patchy. there are some excellent examples of computer teaching in schools, but fewer than half of schools, but fewer than half of schools in england for computer science at gcse. it's not available to all pupils and we feel strongly all pupils should have the option of studying computer science to gcse. our pupils excited about it, in general? is there a demand for people to study it? the demand is increasing steadily, but the demand is related to how well the material is related to how well the material is delivered in schools and what support they have in terms of training teachers and having appropriate equipment to do practical work on. what for now,
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thank you. interesting, from the university of manchester. we wa nt we want to draw your attention to the christmas adverts on the bbc website. it's the build—up to it.|j like them all, no particular retailer. not discriminating in any way. we have a report on our website at the christmas advert spend is set to hit a record high, the number keeps on building every year. we are expecting advertising agencies to ra ke expecting advertising agencies to rake in e6 expecting advertising agencies to rake in £6 billion over the christmas period. check out the website for more on this. you're watching business live — our top story... president trump has told a gathering of asia's biggest economies that the us will only do bilateral trade deals that are in its interests. china's president told the same
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summit globalisation was irreversible. looking at the markets quickly, it's friday. fairly flat, if not a little bit lacklustre as we edge towards the weekend... some long lunches may be today. it's been a big week for the world economy — not least because the leaders of the two biggest — the usa the usa and china — have been doing deals. and crunch time for brexit talks is fast approaching. the next eu summit is fast approaching in december. we can grapple with all of this now. our economics editor, kamal ahmed is here. let's start with president trump. he is at apec right now. he's been on a big tour of asia. i think this is a significant week in terms of really
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understanding, and we have spoken about this so many times with donald trump, how much was the rhetoric reel in terms of policy responses and economics, and how much would actually start dissolving when he realised the complexity of relationships around the world. i think this week with his visits to japan, south korea, china, and now to apec, has revealed economic reality has won out in the debate. the very critical noises that came out of the trump camp before he was elected president, on china and on trade, has dissipated. i think there isa trade, has dissipated. i think there is a reality that america, for example, wants to do big energy deals with china. one thing to think about is asia is notjust china. japan, he is with apec today, with the philippines and vietnam. these are countries that will be concerned about some of china's expansionary behaviour and will see the usa as possibly an ally in challenging that. looking at the south china
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seas particularly and some of the tensions there. we have seen the economic reality for the usa. and for china, america is a big customer, so they want good relationships. i think this week has been about that. what about the change of stance on the part of the us which we knew was coming. that is to say, i will talk about bilateral trade, forget about the big trade deals like the trans—pacific partnership, with many countries coming together. it willjust be one on one, assuming you talk about the rules of fair and free trade. the contrast with president xi, the talk of globalisation. again, some contradictory messages from america. america has continued its trade negotiations with the european union, not pulling out of the equivalent of the ttp with the european union, but it did with the asian free trade agreement. there is
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the notion that with asia there is better to split the nations. i'm not sure everybody is convinced that davosis sure everybody is convinced that davos is a big, positive globalisation force either. i think america is becoming aware, and frankly president obama was aware of this as well, it needs to pivot towards asia to ensure there is a baron ‘s next of economic powers in that region. —— a balanced mix of economic powers. let's move onto brexit negotiations. round six of talks conclude today. where are we? i think there has been quite strong progress on the three key issues, the divorce bill of how much britain will pay to the european union. on northern ireland, i still think there is great tension. that's the
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issue about where northern ireland sits, the only land border between the united kingdom and the rest of the united kingdom and the rest of the european union, a very complicated area. and also citizens rights, eu citizens in britain, and british citizens in the rest of the eu. some progress there. but you are absolutely right in your introduction to say that what they are looking towards is the eu summit in december. while the eu allow the beginnings of this trade negotiation? this is the big issue. the significant point here is, for the exit issue, the eu 27 are absolutely locked together, no compromise on what they demand from britain before the exit of the eu is agreed. when it gets to a trade deal, the tensions between the eu 27 might start to be revealed, because different countries will want different countries will want different relationships with britain. countries that export agriculture, countries that export automobiles, countries that want to use london as a financial centre. it
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means the eu 27 might start to see tensions coming through. i think the free—trade bit of this, which they might start talking about from december, that's when the eu 27 might start seeing a bit of fractiousness around their approach. many thanks. really interesting. let's see what other stories are being talked about on social media. this is how to stay in touch. the business live pages where to stay ahead of all the business news of the day. we'll have insight and analysis from the bbc‘s team of editors from right around the world. and we want to hear from you. get involved on the bbc business live web page. as well as on twitter and facebook. business live, on tv and online, whenever you need to know. what other business stories has
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the media been taking an interest taking an interest in — james bevan is joining us again to discuss. the likes of mark zuckerberg and shaun parker talking about the toxicity of facebook and social media. he has identified people get hooked. we know this has always been true. we are heavily motivated to ta ke true. we are heavily motivated to take up what we are told is going on in the world. think about father christmas, his modern version is created by the coca—cola company. we have been in this situation for a long time. you can't say that the bbc! we still believe he's out there. santa claus is still out there. santa claus is still out there. but giving him the little red outfit and giving him the name is a coca—cola inventions. outfit and giving him the name is a coca-cola inventions. we had a huge
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response from viewers. many of you have changed your behaviour because of social media. jerome says he boycotts people who are obsessed with their phones at social gatherings and terms of wi—fi at home. another viewer, i left facebook months ago and it's the best thing i did. twitter is less consuming. my millennial children are all consumed by social media. there is no putting the genie back ina there is no putting the genie back in a bubble. it's the end of innocence. james is on facebook to keep an eye on your children. innocence. james is on facebook to keep an eye on your childrenlj innocence. james is on facebook to keep an eye on your children. i like to keep an eye on what they are up to. it's less invasive. they don't post things they don't want me to see. it's interesting, the monetisation. it's working well. the facebook share price target is over $200. james, always good to have you. have a good day and we will see you. have a good day and we will see you soon. turning cooler as we move through
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the weekend. today we are looking at some good spells of sunshine after this early cloud and patchy rain has sunk its way quickly south through the morning. good spells of sunshine through much of england and wales as we had through the day today. chance of the odd isolated shower through scotla nd of the odd isolated shower through scotland and northern ireland. showers in scotland could be heavy on blustery, the odd rumble of thunder isn't out of the question. there could be hail of higher ground. further south and east will see more sunshine and fewer showers. fairly blustery north—westerly wind with temperatures struggling in the mid—single figures. increasingly cloudy as we had through the afternoon for northern ireland. largely dry with sunny spells as we had through the day, highs of around 12 celsius in the south with a brisk north—westerly breeze. going through this evening and overnight, outbreaks of rain spreading into northern ireland, southern scotland then into northern england and north
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wales. showers persisting to the far north of scotland, we could see patches of ice and frost. temperatures falling away with clearer skies. the rangers courtesy ofa clearer skies. the rangers courtesy of a wave in front courtesy... —— the rain is courtesy. things could turn cooler as we move through the weekend. temperatures continue to drop off and feeling noticeably fresher by the time we get to sunday. by the time we start the day tomorrow, a chilly start first thing in the north with one or two showers persisting for the far north of scotland. cloudy in northern ireland and the far north of england to begin with but it will brighten up moving through the day. fairly cloudy in central england. rain confined to the far south—west moving through the day. in the north, clearer skies and more brightness, highs of between seven and nine celsius. a chilly day on
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the way for remembrance sunday. particularly to begin with. good spells of sunshine and the odd risk of the odd isolated shower on the east coast. highs of 10 celsius. widespread frost to begin monday. outbreaks of rain pushing into the north—west in the afternoon and feeling chilly. hello, it's friday, it's 9am. welcome to the programme. march 29th at 11pm, 2019 — that's the date that will fixed in law for britain to leave the eu as theresa may warns potential conservative rebels not to try and block the process. forced out of his dream job as a police officerfor being asian — we talk to mark dias about his pursuit ofjustice at the hands of cleveland police, where he says he was systematically bullied and spied on. he has now been awarded half—a—million pounds in compensation. asian officers would be subjected to fabricated internal investigations,
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conduct investigations and criminal investigation by the professional standards department. we
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