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tv   BBC Business Live  BBC News  May 22, 2017 8:30am-9:01am BST

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this is business live from bbc news with sally bundock and ben thompson. president trump leaves saudi arabia with hundreds of billions of dollars of trade deals for the united states and it's all about jobs. live from london, that's our top story on monday, 22nd may. is it a simple win the for the united states economy or is there a bigger cost of doing business in saudi? we will talk you through what's at sta ke. also in the programme, hong kong's flagship airline makes it biggest change of course for 20 years, but can job cuts land the saving cathay pacific needs? a new trading week is under way. the
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debt crisis in greece is back in focus. we'll tell you all you need to know. and we'll be getting the inside track on one man's effort to make musical millions. it might look like a kids toy, but with some of the biggest names in music want to get their hands on it, we meet the man behind the lightblock pad. so today we want to know, what was your first musical instrument? did you learn at school? let us know. just use the hashtag bbcbizlive. welcome to business live. violin. it was good, bad and ugly! we begin with us president donald trump who is about to leave saudi arabia on his way to israel. that's his next stop on his foreign tour. over the weekend in riyadh he signed agreements worth hundreds
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of billions of dollars between saudi and american firms. the deals are said to be worth more than $350 billion over the next ten years and build on america's decades—long alliance with the world's largest oil producer. now saudi arabia is trying to diversify its economy away from oil after crude oil prices slumped by half over in the past three years. and among the us firms trying to work with saudi arabia's private sector the likes of honeywell, dow chemical and general electric. a key part of the agreement is a $110 billion arms deal which the white house says is the single biggest in us history. it will supply a range of military items including planes, ships, sophisticated radar and precision—guided bombs. the arms deal is part of a tough stance that mr trump appears to be taking on iran, a move that will please saudi arabian officials. it is in sharp contrast to his predecessor barack obama, who in 2015 signed the nuclear deal with iran.
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speaking on sunday, mr trump singled out iran for criticism, accusing it of fuelling sectarian conflict and terror across the region. until the iranian regime is willing to bea until the iranian regime is willing to be a partnerfor peace, all nations and countries must work together to isolate iran, deny it funding for terrorism, cannot do it and pray for the day when the iranian people have thejust and pray for the day when the iranian people have the just and righteous government they so richly deserve. esfandyar batmanghelidj is the founder of the europe—iran forum. hejoins us in the studio now. let's talk about the deal. a big deal that trump has been keen to hail as deal that trump has been keen to hailasa deal that trump has been keen to hail as a successful outcome of that trip. it was began by obama, but $110 billion, what do you make of
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the deal? well, i think the deal and the deal? well, i think the deal and the riyadh summit was largely an opportunity for saudi arabia to demonstrate that they are controlling sort of the us approach to middle east policy and the size of the deal, $110 billion is a transparent attempt to put a price tag on the us—saudi strategic relationship. if you look at it from the prospect of saudi's rival iran, it is an amount they cannot match. the only comparable deals iran has with the united states are two pending contracts with boeing for the sale of commercial aircraft, those amount to merely $11 billion. so we're talking about ten times more economic value that trump is delivering at the summit. more economic value that trump is delivering at the summitlj more economic value that trump is delivering at the summit. i suppose if you're boeing, it is still good news to have an $11 billion deal, but you're right, in terms of financial influence and therefore, economic and political influence, iran can't compete with saudi arabia? that's it. on a company by company basis iran remains an attractive market for us companies.
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the companies that were just mentioned honeywell and general electric are looking at the iranian market and there is significant investment, but the overall picture is clear if money is what's going to talk for donald trump, iran will have a hard time getting their influence heard in washington and so they will have to find other avenues and rely on other international partners to anchor their relationship in the international community. an important time for iran too, of course, a time of big change in terms of the elections, change in terms of the elections, change and no change depending on which way you look at it, but crucially, iran is able to look further afield after lifting of sanctions, it is back in from the cold. it has more opportunities. 0pportunities that don't rely on the united states? i think so. the incumbent president won a resounding victory on friday. there was 72% voter turn—out, he won nearly 60% of the vote and elections are a rare occurrence in the middle east and
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don't take place in saudi arabia. so in some ways it was an opportunity for iran to put their best foot forward and demonstrate that they are not simply the malign influence in the middle east that donald trump has portrayed them as in his speech. so where will iran are looking next? europe is the key destination. the fa ct europe is the key destination. the fact that president trump has so quickly alined himself with a particular saudi view of how the middle east should be alined has opened up space for iran to really re—engage with europe at‘ deeper level of foreign policy and say that not only are there potential economic opportunities, but there is an opportunity to create a more constructive agenda for relations in the middle east at large and president rahane was re—elected because the iranian people believe that he is able to advocate for them on that stage. really interesting stuff. it's a fascinating one for us to follow. it is really good to talk to follow. it is really good to talk to you. let's take a look at some of
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the other stories making the news. the japanese technology and telecoms giant softbank says it has closed the first part of its massive investment fund after having raised more than $93 billion. masayoshi son who is the company's founder only launched it in october. apple, foxconn and the soverign wealth funds of saudi arabia and the united arab emirates are amongst those to have committed money to the fund which aims to invest make long—term investments in new technology. airbus has appointed a panel of independent consultants after uk regulators launched a bribery investigation looking into the company's jet division. the aerospace firm says that the panel which consists of former european ministers will be given access to "all levels of the company". the uk serious fraud office's investigation follows a similar probe by french authorities. leaked documents have revealed
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the ethical policies carried out by the social media giant facebook. according to the guardian newspaper, the company does not instruct employees to remove content showing violent death, abortion and self—harm. the news comes amid calls for facebook to play a bigger role in censoring content which some users may find offensive. a quick look at the business live page for you. there is one story in town as far as the united states is concerned. ford relaying their chief executive mark fields. it follows a major reshuffle at the car maker. the new york times now reporting this. this comes after poor sales, falling profits for the car maker, a 40% decline in its share price. so ford's boss out it seems. we will talk more about that later. let us focus on hong kong's flagship airline cathay pacific is going to carry out it's biggest shake—up in 20 years. it means hundreds ofjob losses and comes after last years losses which were only the third full year losses in its seven decades of flying.
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christine hah is in singapore. so another reshuffle, cathay really trying to do something different after that significant loss? yes, you have to remember this is under its new ceo as well. they're getting rid of 600 employees as part of this revamp. now, remember this rid of 600 employees as part of this revamp. now, rememberthis is rid of 600 employees as part of this revamp. now, remember this is cathay is asia's biggest airline. 600 jobs going away, the majority of whom will actually be told today and most of these will be back office staff, no pilots, no crew and no front line staff will be affected, but a quarter of management positions at the headquarters will go. cathay are trying to get back into the black. they're hoping for cost savings. 30% from these measures and they say they expect a restructuring to be done by the end of the year. air traffic is growing quickly, but there is a lot of competition and a lot of budget carriers and other
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premium airlines from the middle east are coming into the scene and people are not paying for first class seats as well. so while the passenger traffic is growing, the margins are going very low for cathay and the other premium carriers in this region. thanks, chris teen. we know well the difficulties some major airlines are facing in the current markets. it is extremely competitive right now. a good session for markets in asia. following on from a strong close in wall street and europe. 0il stocks doing well and energy shares doing well. the price of oil edging higher. we have got an 0pec decision expected in vienna and many are betting they will continue production cuts for longer and perhaps even more so. so that's pushing. the price of oil. let's look at europe right now. we have got the greece discussions about its debts happening today in brussels. there is talks that they may talk
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about brexit divorce bills today in brussels. we shall see about that. that's possibly a speculation. you can see europe mixed, but also, of course, we've got federal reserve minutes released on wednesday. there isa minutes released on wednesday. there is a lot happening this week. and samira hussain has the details about what's ahead on wall street today. joining us is trevor greetham, head of multi asset at royal london deere will be reporting on friday. so low farm income in north america, its biggest market will weigh on sales. but, profits are expected to get a boost because of cost—cutting measures including lowering job cuts and lowered production taking in the previous years. the world's largest soup maker campbell will be reporting earnings. but campbell's see fresh business was hit by an
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early harvest of baby carrots and the company had already said last quarter that it does not its see fresh business to grow for the rest of the year. joining us is trevor greetham, head of multi asset at royal london asset management. let's talk greece. eurozone ministers start talking about the next round of debt relief because some loans come due injuly? next round of debt relief because some loans come due in july? that's right. there is 7 billion euros due injuly and right. there is 7 billion euros due in july and the right. there is 7 billion euros due injuly and the talks are about is whether the various creditors can agree to lend greece money to pay back some of the earlier debts that it owes and in particular the imf, the international monetary fund for which greece is the biggest ever bail out they have got involved in, they want europe to shoulder more of they want europe to shoulder more of the burden by extending the dur rags of the loans and basically allowing greece to spend more time to pay the money back. will the imf achieve
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that goal and get more help from europe as it were or will germany and others keep digging theirfeet in? greece was asked to do various reforms. now it is the creditors agreeing amongst themselves what europe has to do to get the imf money in. it seems likely it will happen. it is worth bearing in mind the greek economy is 25% smaller thanit the greek economy is 25% smaller than it was ten years ago. it hadn't grown for the last five years. we have got unemployment of 23% and really to make the euro area work you probably need to see more leaning in from other european countries when a country is in difficulty and greece seems quite small, but italy is out there and that's a big country with lots of debt as well. a lot of speculation that germany, that was always the hardliner as far as what greece needed to do in return for the money might be softening? needed to do in return for the money might be softening ?|j needed to do in return for the money might be softening? i wouldn't call it softening! there is a likelihood that i think that the greek debts will be extended to 20 years. the
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imf was asking if they could cap or freeze the amount they have to pay back each year and the germans are opposing that. so it is a bit of ha rd opposing that. so it is a bit of hard and soft. i think there will be a deal. people are putting it at 50/50 today. we have a quietish week this week, but i say that today, it's monday and anything can happen! but what are you watching out for? what's on your radar as we head towards the summer months? we have gotan towards the summer months? we have got an election injune. there is a lot going on. the markets are generally more prone to shocks and moved side ways over the summers, so what we're looking out for are signs of what is going on in china, it looks like the economy is slowing down, we are concerned about geopolitical shocks. i think it will be an opportunity to buy dips over the summer, the stock markets pay pull back. the longer term picture is looking good because interest rates are low and the reason there has been an eight year expansion is wage inflation which is low. central
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banks are relaxed to keep the money flowing. 0il back up. it's about $54 a barrel for the first time in a month. still to come... it might look like a kids toy... but could it be the next big musical invention. with some of the biggest names in music trying to get their hands on it — we meet the man behind the lightblock pad... stay tuned and we will explain how all of this works. 9,000 people who lost money on shares in royal bank of scotland begin a high court action today demanding compensation from the bank and four former directors including fred goodwin. the claimants say they were misled by the bank when it sought to raise £12 billion from shareholders
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in april 2008, a few months before it had to be rescued by taxpayers because it was running out of money. 0ur economics correspondent, and the verity, is in the newsroom. we have run through the headlines, but explain what we're talking about. fred the shred will not be there today but he will be appearing on polling day. he is a presence there because he was in charge of royal bank of scotland, which also contains natwest, in 2008 when it ran into big problem lie trouble. —— into big trouble. tens of thousands of shareholders were asked to put their hands into their pockets in april of 2008, the biggest fundraising exercise ever at the time. they asked employees of the bank, who were offered loans in order to buy those shares. what
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happened is the shareholders say that they were misled because there are misleading statements in the prospectus for that fundraising and there were also serious omissions. they were not told that internally the bank knew that if it could not borrow on the money markets, it could run out of money within a day. the shareholders say that obviously if they had been told that, they would not have handed over the money and the rights issue would not have happened. these things take a long time to come to court. rbs has been trying to settle with people even as recently as this weekend but so far it seems they have not succeeded completely. do we know how this will play out? those who were looking for compensation asking for over £500 million in compensation. what is likely to be the outcome? do we know? it depends on whether the bank would succeed in settling. they have a strong case, the shoulders. rbs will say that they are going to
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defend this vigorously. they think they have a strong case to answer. but obviously we have a whole bunch of bad news from the past which is going to come back up and the bank really does not want that. it does not want fred the shreds to be appearing. this is business life. president trump is on his way out of saudi arabia and he has done serious deals. he is heading to israel now. a quick look at other markets are faring. a quiet start to the week but we will keep an eye on how the numbers are performing. the pound against the dollar, nearly $1. now let's have a musical interlude. our next guest is the man behind this —
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the seaboard — it's a futuristic version of the piano. it lets you press down parts of the keys to change how they sound. his firm has already raised nearly $30 million in funding, attracting interest from musicians as diverse as stevie wonder and german composer hans zimmer — famous for his music scores. entrepreneur roland lamb is the founder and chief executive of roli and the inventor of the seaboard. his childhood was far from ordinary — roland was home schooled in rural new hampshire, learning the piano early — his jazz pianist father taught him when he was a toddler. he started his first business — a jazz cafe for students — while attending summerhill, an alternative british school. roland's mixed globe—trotting and studying, learning buddhism injapan, working as a visual artist and a jazz musician around the world before settling in usa, to study classical chinese and sanskrit at harvard university. roland moved back to the uk to study again, earning a phd in design products, where he dreamt up a new type of keyboard, a futuristic instrument called the seaboard. in 2013, he built his first
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prototype and founded his company founded roli. iam out i am out of breath, there are so many things on your cv! lets just introduced the man. welcome, rowland. that is an incredible cv. i wa nt to rowland. that is an incredible cv. i want to ask you about all the other stuff. tell us what it is and how it works. this is our newest product, and it is an abolition of the concept i developed kolbe seaboard. asa concept i developed kolbe seaboard. as a jazz musician, when i play the piano, i wanted as a jazz musician, when i play the piano, iwanted more as a jazz musician, when i play the piano, i wanted more expression and i was jealous of the saxophone players and guitarists and so on. i came up with the idea of the seaboard, and now it is used by musicians all around the world to add expression to how they play. but i wanted to make this more expressible —— accessible, because acoustic measurements are difficult to learn. electronic music is still quite technical so we built this,
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which uses the same technology as the seaboard, meaning you can use intuitive gestures to vary the pitch and volume of what you are playing, so and volume of what you are playing, so rather than being an on off note, you will not quite hear the down note but you might get some sense of it. as press, i am changing the timbre andi it. as press, i am changing the timbre and i add vibrato. and then the lights can guide me. it can enable me to play different scales. basically this takes that more expressive technology of the seaboard and put it in everyone's hands. does anyone else do something similar? there are so many synthesisers and electronic gadgets that replicate musical instruments out there, there are loads. does anyone else do that where you can use yourfinger to anyone else do that where you can use your finger to create the expression as you described? not really. there are a few different instrument makers picking about this
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problem of how we make electronic music more expressive. there is a fellow called roger linn who developed the drum machine, and there are people who have worked on this but we are the first company leading the charge, trying to bring the depth of expression of acoustic instruments into the world of the digital, because that sound was just being controlled by my thumb, which means i can leveraged everyone's some as a musical device. just by adding ona some as a musical device. just by adding on a very expressive controller. the point is that that is scalable and you can attach these panels, you can make a bigger. that's right, it is a modular system so if! that's right, it is a modular system so if i connect in another block, it will sync with this and then i can do other things, so for example i was just saying about the different scales, no if our press this button is which is the lighting, or i can use it to record play. i can use this for expressive performance and also production. so the likes of stevie wonder and others have got
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the seaboard, which is more like piano keyboard, more like what pianists are used to using. but that is totally different. i tried to play that in the green room and i got nowhere. it was bizarre. definitely it is new. for electronic musicians, like steve aoki and other djs, they are already using blocks, but for traditional musicians it is a little bit of a jump, if you know the piano for example it is a jump to come to something like this that is laid out so differently. briefly, you have attracted a lot of funding already. what will you do with the next round of funding? we are continuing to build out this system of blocks, it is modular so we can have other blogs that fit into the system and we can focus on the development of the app. we have just launched on android last week, and so getting the app onto more forms
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is the next. it is so good to see what i want to ask you so many other but time is brief as always. i know we did not quite do itjustice with the sound but it sounds much more professional elsewhere. better than my attempts in the green room. but then he is the pro! here are some top tips for those who want to run a business. the business live website will keep you up—to—date with all the news from the bbc‘s team of editors around the world. and we want to hear from you. editors around the world. and we want to hearfrom you. get editors around the world. and we want to hear from you. get involved on the bbc business live web page: and you can find us on facebook, at bbc business use. —— bbc business news. dominic isjoining us from our
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business team. he is quite known in the uk, because he ran forfor quite a long time. he is best-known for hairdo, mark fields. he had a mullet hairdo, mark fields. he had a mullet hairdo that would have made chris waddle the football approach. he has lost it as he has become more senior. he is a big car enthusiast. why is he going? he has been trying to restructure ford. he took over from alan mullally, who saved for from alan mullally, who saved for from a financial crisis. he is the only one who did not go to the us government for assistance during the financial crisis. mullally remade it but mark fields took over. he has been trying to get across rudderless cards and the ford boards do not think is going across fast enough. —— he has been trying to get across d riverless —— he has been trying to get across driverless cars. thank you for your time this morning. bye—bye. good morning. may is technically a
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spring month but i have to say, through the week ahead it is often going to feel like summer. this is how the week started for the weather watchers. a beautiful sunrise. then we cared, it is looking largely dry. there will be good spells of sunshine and in that sunshine it will feel warm, particularly warm by the end of the week. but back to today, it is not sunshine all the way. as you can see from the satellite picture, fair amount of cloud making its way in from the west. the cloud is spin and hype and especially across england and wales, it will not do much more than turn the sunshine hazy at times. thick clouds to come across northern ireland and scotland and that will bring some outbreaks of rain. by the big devil —— by the middle of the afternoon, it will turn quite hazy across some of scotland. eastern and southern scotland staying dry with
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brightness or sunshine. things brightening up across northern ireland as we had through the day. there will be some high cloud across northern england and into north and west wales. further south and east, more in the way of sunshine. bright sunshine, warm sunshine, temperatures in the south—east. up to 25 or 26. through this evening and tonight, a spell of heavy rain across north—east scotland and perhaps the odd flash of lightning. some gusty winds clearing away. a fairly chilly night across northern areas. a mild night further south. we will start to see cloudy, misty, murky conditions feeding into words the south—west because high pressure in the south is bringing moist air towards the south—west. there are amounts of cloud here tomorrow, murky conditions. away from the south—west, we will see a decent amount of sunshine. just about all areas will be dry with patchy rain in the far north west of scotland. temperatures may be down on today.
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wednesday looks like a cloudy day. but that cloud should break up to give sunny spells across england and wells. always thicker cloud up in the north—west, and maybe the odd spot of rain. for the end of the week, staying dry with sunny spells. some places ka nte week, staying dry with sunny spells. some places kante temperatures up into the high 20s. hello. it's monday. it's 9am. i'm victoria derbyshire. welcome to the programme. this programme has learnt that a police inquiry into deaths at a mental health trust could investigate up to 20 cases. just said matthew has been found hanging. it doesn't look good. i couldn't breathe. i fell to the floor and my partner took the rest of the call. our full exclusive story at 9.15am.
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also this morning, thejury overseeing the bill cosby sexual assault trial will be sworn in today. one of his alleged victims tells us the american justice system is slanted towards protecting perpetrators. he stood so low
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