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Transcripts For BBCNEWS BBC Business Live 20170406

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To do with the central bank. And we get the inside track from the boss of dulux paint owner, akzonobel, on why hes fighting off a 23 billion hostile takeover. Tonne buchner also tells us what the rise of populism in europe means for big business. Also in the news, amazonsjeff bezos says hes selling 1 billion each year, to get into the space race. Today were asking, for your next space holiday, which entrepreneur would you trust to get you there and back richard branson, elon musk orjeff bezos . Just use the hashtag bbcbizlive. Welcome to the programme. The worlds two biggest economies come face to face later today, when us President Donald Trump hosts his chinese counterpart, xijinping, in florida. It will be the first time they meet in person. As well as north korea, trade will be at the top of the agenda for theirfirst meeting. Its already an issue thats created tensions between the two. Lets look at it in more detail. Atjust over 659 billion of goods and services in 2015, its one of the biggest Trading Relationships in the world. But the big problem donald trump has, is that its heavily tilted in chinas favour, because the us had a Trade Deficit of 336] billion. Last week, mr trump tweeted that todays meeting will be a very difficult one, in that we can no longer have massive Trade Deficits. Trump has been outspoken in his desire to put america first. In terms of what he might do about it, during his Election Campaign, mr trump floated the idea of a 45 tariff on goods from china. There have been indications china would retailate to any such move, and injanuary, president xi said that waging a trade war will only cause injury and loss to both sides. Marianne petsinger, a Geo Economics fellow in the us and the Americas Programme at chatham house, is with me. That is a think tank based in london. Good morning. So much anticipation about this meeting between the two president s. How do you think this will go . between the two president s. How do you think this will go . I think expectations have been lowered. This will be a meeting about setting the Trade For Future will be a meeting about setting the Trade Forfuture trade will be a meeting about setting the Trade For Future trade discussions. I dont expect any Concrete Trade Issues to be solved. The missile launched from north korea overs ha d ows launched from north korea overshadows events. In terms of trade, during the Election Campaign itself, donald trump saying on day one he will name china a currency manipulator, he will slap tariffs on goods coming from china into the United States. As yet we have seen nothing . That is correct. What we have seen is last week trade orders we re have seen is last week trade orders were signed looking into the Trade Deficit. We could say that is potentially targeted at china and the other one is focused on increasing enforcement of rules. China is seen as the culprit. In terms of the bigger promises, we havent seen them. China has not been named a currency manipulator. Ina been named a currency manipulator. In a couple of days, around april the 15th, the treasury releases its biannual report looking into Currency Manipulation more broadly, so we Currency Manipulation more broadly, so we could see some developments. Chinese investment in the United States is interesting. What do you think trumps view will be . Do they really wa nt think trumps view will be . Do they really want the chinese taking over their companies . Key administration positions are saying we dont want that night we want an american investor, not a chinese one. There isa investor, not a chinese one. There is a fine balance to be struck. Chinese investment could lead to the creation of jobs Chinese Investment could lead to the Creation Ofjobs in america, which trump would be in favour of. On the other hand, Security Issues may be dominating the agenda. Do you think overall after this meeting today and on words, that this is so critical the two leaders believe they do get on and see eye to eye on the key issues, not least north korea . Yes, and both are under great domestic pressure to deliver. Trump still recovering from the defeat with Health Care Reform. For xijinping, Health Care Reform. For xijinping, he is facing the commonest meeting later this year. He has to be strong. He has to show he is able to build a strong relationship with him. Marianne, thank you. Needless to say, we will keep your cross at that meeting goes when it kicks off later today in florida. I would imagine all eyes will be on it. Tencent becomes one of the Top Ten Largest Companies in the world, according to bloomberg. The chinese internet giant, best known for its wechat messaging service and gaming, has overtaken wells fargo by market size, and joined the ranks of apple and alphabet. It gained 1. 6 on the news taking its value to 279 billion. The rest of the top ten is dominated by us tech firms. A Chinese Court orders Samsung Electronics mainland subsidiaries to pay almost 12 million to Huawei Technologies for infringements of smartphone patents, in the china firms first legal victory against samsung on intellectual property. A spokesman for huawei said it welcomed the ruling. Samsung said it will decide on the response to the Court Decision after reviewing it. Pepsi pulls an advert featuring kendall jenner, following Public Outcry and accusations that it trivialised recent Street Protests across the us. The advert featured the reality tv Star Defusing Tension at a protest, by walking to the police line and handing an officer a can of pepsi. Now to australia, where the countrys Consumer Watchdog is suing apple over its software which disabled iphones and ipads that had been serviced outside apple stores after users downloaded updates. The australian competition and Consumer Commission says the tech giant violated the countrys consumer law. Hywel griffith is in sydney. Very specifically, they alleged it has made false, misleading or deceptive representations about Consumer Rights. What does this actually mean . Lap let me give you the back story. It all goes back to having one of these, a pretty ubiquitous iphone. There will be a softwa re ubiquitous iphone. There will be a Software Update every now and again by apple. Back in 2014, and for several months following, anyone who had an update, had it repair done to their phone previously. They may have changed the touch screen. They may have had something called error 53. If they took their phone to an apple store in australia, they would have been told that unless it had been serviced only by apple, they wouldnt update and fixed the phone for free. The Consumer Watchdogs say that Consumer Rights are being breached because apple was refusing to carry out a standard duty of care and repairto to carry out a standard duty of care and repair to the phone, on the basis that someone else had maybe fixed a cracked screen or Something Like that. Thank you very much indeed. Lets look of the markets. They are looking a bit sickly. The nikkei down 1. 4. The dowjones down. And the hang seng. A lot of things to worry about. There is the meeting between donald trump and president xi. That has got everybodyjittery. They simply dont know what is going to come out of it. The other thing is we had the minutes from the Us Central Bank yesterday. We will talk about that in more detail in a second. The worry there is that basically the Federal Reserve is pushing more money out into the economy. More detailed in a second. Also, we have the European Central bank head speaking, as we speak. The markets dont seem to like much of what he is saying. We will talk about that in more detailjust now. Michelle fleury is in the United States. Cautious was the mood on wall street ahead of the meeting between leaders of the first and second largest economies in the world. President trump will host xi jinping at his retreat in florida. Us Officials Say the meeting is not scripted. Investors will be keeping a close eye to see what the to men have to say about north korea and trade. Specifically how americas trade. Specifically how americas Trade Deficit with china can be reduced. Constellation brands reports Fourth Quarter results. It seems we havent lost our taste for bare beer. It is expected to see continued sales growth in that sector, even as its Profit Margins sing. And ahead of fridays monthly jobs report, an improvement in the weekly figures of the number of americans filing for unemployment benefits. That is michelle looking ahead to the day on wall street. Joining us is james quinn, Business Editor of the telegraph media group. Lots of issues with central bankers. Quite a reaction to the fed yesterday . Snp ended up off. The ftse was off about 100 area. People we re ftse was off about 100 area. People were expecting a little bit more from the fed. They talked about getting rid about 4 trillion of investment in depth. It is selling bonds again . Yes, during the financial crisis they bought bonds nobody else wanted to buy. The Credit Markets were frozen. Now they are going to sell it back into the markets. No timescale and no value. You had that, you had the fed minutes, which had some red flags that caused markets to wobble. Also commons from paul ryan about how tough it has been for the Trump Administration to make change. We have not had the economy boosting reform he promised . Have not had the economy boosting reform he promised . Thats right. One is tax reform and two is infrastructure spending. Paul ryan, the house speaker, said they went with Health Care Reform first because they thought it was easier than tax reform. They didnt get Health Care Reform. What about the European Central bank due the markets dont seem to be terribly happy with marco druggie. The word in frankfurt seems to be he has given the same speech he has given a couple of times this year. They sickly, everything is largely fine, iam not sickly, everything is largely fine, i am not going to change my stance. He said 80 of the sectors across the euro zone area are performing well. Some caution on the growth side. He is not saying he will do anything. We were looking for any hints as to whether he would withdraw from the quantitative easing programme. The euro has fallen quite a bit this morning. As 0011 fallen quite a bit this morning. As 50011 as fallen quite a bit this morning. As soon as he started to speak. Isnt there a feeling around the world we are coming to the end of that loose, and the money is being withdrawn, the party is over . think that is right. There will be some tightening. I think also when people say here mario draghi talking, greece talks on funding tomorrow. The italian economy, spain, portugal, none of them performing well. And to major elections, the french election, the german election. The german election important. Germany doing well, the rest of europe not so good. James is coming back. Iwant rest of europe not so good. James is coming back. I want you to tell us who you are going to go to space with. You have also sent us a lot of thoughts as well. We will read some out later. But so far, most of the money is on elon musk. How is mr branson doing . He hasnt got anyone yet nobody is voting for him yet. If you are for richard, get in touch quick. Youre watching Business Live from bbc news. Still to come, the boss ofjuly is tells us what he is fighting off a takeover. First, lets focus on some of the results out in the uk. The co op is backin results out in the uk. The co op is back in the red. The co op group is back in the red today after its written off its remaining stake in the struggling co op bank. It has posted losses of £132 million. The first loss since 2013. The group had a profitable year. Theo leggett joins the group had a profitable year. Theo leggettjoins us. We now know that the co op bank is worth precisely how much . Precisely nil. All of this goes back to 2013 of course, when the co op bank came close to collapse, when a £1. 5 billion black hole was found in its accounts. There was also mired in scandal. That was all very embarrassing for the company. After that majority stake in the bank was taken up by us investors. The co op Group Retained 20 , but it hasnt managed to get back on its feet at its value has been written down over time. A year ago that stake was worth around £180 million, now the co op says it is worth effectively nothing, which means that despite the fact the co op group has had a pretty robust year, a rise in like for like sales at 2. 5 in its grocery division, its Funeral Care Business is doing reasonably well. Legal services and so on. Its Overall Group revenues have risen to £9. 5 billion, but because of that write off of its stake in the co op bank it has pulled in a loss this year. Nevertheless the group says thatis year. Nevertheless the group says that is ok, the Recovery Plan is working and the rest of the business is fundamentally sound. Can i ask you a question before you disappear . Who is your money on, bezos, mask or branson . I am a great fan of elon musk. Anyone who can make electric ca rs seem sexy. Musk. Anyone who can make electric cars seem sexy. The magic of mask. Elon musk. Today was going to be an important day for the lifetime isa but it has been snubbed by banks and building societies, many argue because it way too complicated. Lots of details on the website. Analysis as well from our personal finance experts. Youre watching Business Live. Our top story. The leaders of the worlds two biggest economies are preparing for their first meeting later today. Trade is set to top the agenda when americas donald trump hosts chinas xi jinping. Have you seen the residents in florida, the private residence . You should see the photos of the inside. Is it more flattering to him to go there or the white house . Is it more flattering to him to go there or the white house7m is it more flattering to him to go there or the white house . It is the summer white house in donalds view. The markets are flagging because of the Us Central Bank and the Federal Reserve as we have mentioned. And now lets get the inside track on one of the worlds biggest attempts at a hostile takeover. The dutch company, akzonobel, is perhaps best known for its dulux paint range. And it could face a Shareholder Revolt if it keeps avoiding talks on the deal. Thats what the boss of its american rival, ppg, told reuters. He also claimed none of akzonobels biggest shareholders were opposed to the deal. In early march, ppg offered 83 euros per share, valuing the dutch maker of dulux at more than 22 billion. But this was rejected. Later in the month, ppg upped their offer to more than 88 euros a share a total deal of 24 billion. But this second offer was also rebuffed. Dominic oconnell has been speaking to akzonobels Chief Executive, tonne buchner. He began by asking why he was rejecting ppgs advances. We have occurred both proposals very carefully, we have taken the boards together, financial advisors, legal advisors, we looked at it carefully from the perspective of a wide variety of stakeholders, including shareholders, and we have seen it is a wholly unacceptable set of proposals. Some of your shareholders, Causeway Capital and elliott, are very keen to you to engage. Why would you talk to the american bidder . There are a number of people who say we understand you are not engaging, we dont see the downside of it but we respect your decision and then there are a fuel or so decision and then there are a fuel or so who have been public in saying they would like us to engage and there are people who are really looking forward to our april 19 investors presentation because they wa nt to investors presentation because they want to see our plan. They have seen what we have done in the last couple of years may want to know what we plan on going forward. Are you fea rful plan on going forward. Are you fearful if you were to fall to a bid from an american rival like ppg that jobs would be lost in europe as a result . There is a general opinion that the proposals essentially undervalues the company. We also look at issues such as the location of research and development, the dna of research and development, the dna of sustainability that we have and theissues of sustainability that we have and the issues around our stakeholders that we in the netherlands have a due to to take into consideration. We talk about the have a duty. The labour party in the dutch elections, they proposed a foreign ta keover elections, they proposed a foreign takeover fine. These proposals are very much the response to the changed atmosphere. There are now things happening in many countries that save this Playing Field is not level. We need to do something about it, we need to make sure that either there is a time being given or there are different considerations being included. The new dutch Corporate Governance code has very strongly put emphasis on the long term strategy, on culture, on creating long term value, and certainly we as a Company Strongly support that. What the next government will do is not something i will speculate on today. But the underlying message is that price should not be the only consideration. It is already the case in the netherlands that we have the fishery duty to look at stakeholders so it is clearly not only about pricing. Isnt it difficult for a company like akzonobel to be against this kind of deal, when you have been doing it for years, you have bought ici and lots of companies around the world. So isnt it hypocritical . lots of companies around the world. So isnt it hypocritical . I think thatis so isnt it hypocritical . I think that is an improper word to use. We have looked very carefully at the proposals we have received. We have looked at it from a value perspective, a shareholder in specter, a Stakeholder Perspective and an anti trust proposal, and we think that these proposals are wholly inappropriate. That is why we have said clearly now to the proposals on our table. Going back to the takeover finally, perhaps, since theresa may became leader here there has been a lot of debate about whether it is too easy for companies, foreign companies, to buy British Companies, because of the way the Takeover Rules work because ofa way the Takeover Rules work because of a weaker sterling. Do you accept some of that argument . Is it too easyin some of that argument . Is it too easy in europe as a whole for foreign bidders to buy your British Companies . We see in many countries this particular psychology starting to change that people do feel a bit threatened by the globalisation. This is the driver of certain populist movements that are there, it results in certain votes that we have seen in certain countries. Therefore there is indeed that concern, and a concern that we all will have to live with. It is a very big concern in the netherlands as well. Overall what you see is that the environment we operate in as companies has significantly changed, because the popular a cce pta nce changed, because the popular acceptance of what used to be normal is not there any more. You also say, it is not a level Playing Field. You see the euro is weak, the pound is weak, the dollar is quite strong and therefore you get some tilting of therefore you get some tilting of the balance and people say that does not really create a level Playing Field and i have some understanding of the arguments people use. That new populist mood could be quite useful to defend yourself against a hostile bid because you can rely on the support of the people which you might not have been able to counter in the past. The mood is there, it is not created by companies. The politics of course are driven by this mood. It is a fact of life that we will have to deal with, as one of our very we will have to deal with, as one of our very important stakeholders of the world. That was the ceo of akzonobel speaking to dominic. As promised, james has returned. Before we talk space, lets just talk about this other story that caught our attention, it is in the telegraph and stop your paper. Theresa may in saudi talks for london to host worlds biggest share flotation. This is a ramco. Everyone is wooing them. Japan were going for it, eve ryo ne them. Japan were going for it, everyone is keen, new york. 2 trillion, whoever gets it will be, that city will have the prestige and everything that goes with it. I think it is down to new york and london now. Is that the reason she is there do you think, the real reason . I think it was one of the reasons, she was in saudi and jordan had three days, the only Chief Executive was the boss of the London Stock Exchange to have a beating with her. That has to be one of the reasons. It would be wonderful for london to get it. Lets talk space. Who would you go into space with, if you will have to choose one of the entrepreneurs . As many people have suggested, i would entrepreneurs . As many people have suggested, Iwould Rather Go Entrepreneurs . As many people have suggested, i would rather go nasa with their track record, as opposed to someone who has only been at it. Richard branson has been going at this since 2004, the launch date has moved on many times. I saw him in seattle last week, and he said hoping to get away next year with himself and real paying passengers. Lets go with what the viewers think. They are with elon musk. And nasa. And they like the fact that elon musk is working with nasa. Nobody is going for bezos. And no one going for branson. Of the small poll we have conducted maybe you get free amazon prime as well that is it from Business Live, goodbye. Good morning. A very promising start to the day, a little on the chilly side and there are some patches of mist and fog around, particularly the Cheshire Plains was that this is north which in cheshire. Some fog around the Manchester Airport area but with another fine day again, the Tree Pollen Levels are high again across southern Tree Pollen Levels are high again across southern areas. Tree pollen levels are high again across southern areas. High pressure stays with us into the weekend so it is looking fine and dry. The best of the sunshine will be this morning once again. The cloud will tend to build up but it is still bright, if not sunny. Eastern scotland should see some good spells of sunshine, could be 15 in aberdeenshire. And five. No more than the odd Light Passing shower the most. It will at least be dry and bright but the best of the sunshine likely to remain across southern and Western Areas where we could see highs of 15 or 16 as we had yesterday. A very similar feel but strong sunshine, worth noting because at the moment the sun is as strong as late august. It is enhanced at the moment. It is stronger than you would expect it to be. Through the night the clear skies return, another chilly start. A touch of ground frost, possibly the odd patch of mist and then we repeat the story. It will be dry and bright for the most part with a peppering of showers. The weekend sees a subtle change, we keep the High Pressure for most of us, this Weather Front is flirting with the north and west but we are pulling in some continental air. It means less cloud on the whole but also coming from the continent it is warmer air. There will be changes as we head into the weekend. We will see more sunshine coming through. More so through the second half of saturday. We still have that north westerly breeze close to north west scotland. Always more clout here. More like 16 at aintree as we get towards race time. Then on sunday we will see even more sunshine potentially coming through and we will start to feel the benefit of the southerly wind. The offset to that is the north west where we will have that Weather Front so it wont be as warm here. Ten to 13. Potentially 23 in the south and the east. Hello, its nine oclock. Im victoria derbyshire. Welcome to the programme. In the next hour, a Landmark Court ruling on whether parents in england can take their children on holiday in term time. And i will be at the Supreme Court bringing you live reaction to that judgment. We are expecting it in the next hour. Cuts to Bereavement Payments something weve been talking about all week on the programme come into effect today. Well hear from a group of parents calling on the government to reverse the changes. And how to bounce back from massive disappointment. There is a head shot in the last second. Olympic silver medallist lutalo mohammed, who missed out on a gold by one second, has been speaking to others about bouncing back from failure

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