This is the Business Briefing. Im sally bundock. As tensions over a us china trade war are easing, will the next trade battleground be europe. The smartwatch is no threat to switzerlands luxury watch makers. We hearfrom the president of the most prestigeous of them all, patek philippe. Financial markets have started a brand new year. Well japan is closed for a public holiday, elsewhere you can see there are gains. Well go to our Asia Business hub shortly for the reasons why. We begin with the us china trade war because the biggest Business News story of 2019 is set dominate at least the start of this year. Thats as donald trump has said he will sign a long awaited trade agreement with beijing this month. The so called phase one deal, is expected to reduce tensions between the worlds two biggest economies. But its not all about the us and china. The new eu trade commissioner is expected to meet with us trade representative Robert Lighthizer this month to resolve the various trade issues between the two. Most at issue is the French Digital Services tax which came in late last year. That caused a big reaction from the us. Matt sechovsky is senior Political Risk analyst at fitch solutions. Thanks for coming in so early. Good to be here. First of all how optimistic are you, before we get onto the europe situation about this news coming from President Trump and theyve agreed on phase i between theyve agreed on phase i between the us and china, they are going to sign and settled on the 15th of january. Sign and settled on the 15th of january. It offers goodies in the sense that it does help reduce tensions between the two sides, does remove some tariffs but if you look at the actual freight between the us and china, its a marginal reduction. In some of the more contentious issues for Example Technology transfers which have been a major us grievance for a while, those, we still dont have the legal text of the phase i deal yet but we do expect that some of these will be dropped or washed out significantly. There will be more tensions to come asa there will be more tensions to come as a two sides go to negotiate if a studio. From the point of view of the two biggest economies were seeing progress which is good news
but what about europe and the us . The two sides are europe and the us, but have a lot to talk about. You mentioned the French Digital Services tax, apart from that the eu trade commissioner has said he wants to achieve a kind of reset in us, eu relations. There is a long list with a have to go to a part of the Digital Services tax, there is aluminium tariffs that are in place, there are other tariffs of the aircraft subsidies that the eu has been now illegally providing, the World Trade Organisation has ruled early in 2019, the us has threatened to increase as tariffs because the wto has ruled the habit has ruled they have not had sufficient progress. We have a new commission ofa progress. We have a new commission of a trade, how do you think this relationship will fare Going Forward and is it true to say that this is. Multi blues for europe and the us . We would agree with that. And thatis
us . We would agree with that. And that is because europe is much more export oriented, much more vulnerable to trade war compared to the us. And that is partly why we see it is fairly reasonably likely, the us might go through with this ta riffs over the us might go through with this tariffs over the French Digital Services tax because the us economy isnt quite as major indicators, inflation, unemployment are quite low, the dow jones inflation, unemployment are quite low, the dowjones is quite high. Theyre in a good situation. And we mustnt forget a present tribe is gearing up for mustnt forget a present tribe is gearing upforan mustnt forget a present tribe is gearing up for an election at the end of this year. Thats very much on his mind, talking tough about trade is being seen to be putting america first. It would really suit him right now, wouldnt it . Is something is to do with what is presidency and we do see a trend where he tries to create this many deals in 2019, the china phase i deals in 2019, the china phase i deal and possibly some kind of agreement with the eu as well. We will cover every twist and turn, thank you for coming and happy year to you happy new year. Well lets take a look at the actions china is taking to make sure 2020 gets off to a good start. Its central bank has trimmed the amount banks must hold as reserves in cash, injecting 115 billion into the economy. Karishma vaswani is across this for us. Lovely to see you, happy new year tell us more about what china is doing, it comes into effect on the sixth, doesnt it . And the impact that can have. Its not an unexpected move by the central bank of china, but one that is certainly being bred by some economists are pleased that this is a sign that beijing is trying to give a much needed shot in the arm to help boost chinas slowing economy. The decision to allow the amount of cash that banks must hold as reserves to be reduced effectively as you were saying will end up injecting 150 billion worth of cash into the
economy. This is being made, the decision against the backdrop of the continuing us china trade war which has had negative effects on chinas economic growth. As you were just talking about, a phase i deal is expected to be signed later this month. That could help to alleviate the pressure on china but economists ive spoken to are saying theyre expecting more measures like this in the next few months. Authorities are trying to stabilise chinas growth rate which a you will remember slowed to 6 in the Third Quarter of last year, the lowest in decades and authorities have been very concerned about low export growth because of the trade was. As well as Companies Moving out of china to escape President Trumps tariffs. Thank you very much indeed. A story that has boosted markets in asia today. Now lets brief you on some other business stories. The plan to smuggle former nissan chairman carlos ghosn out of japan was reportedly crafted over three months. The Reuters News Agency also says the fugitive executive met lebanons president after fleeing tokyo. It marks the latest twist in a year long saga that has shaken the global motor industry. Turkish airlines has agreed a compensation deal with planemaker boeing over the grounding of the boeing 737 max following two fatal crashes, the carrier says. It did not specify the size of the payment but turkeys hurriyet newspaper reported that it was worth 225 million including 150 million in compensation and 75 million covering things such as spare parts and training. Airbus has become the Worlds Largest planemaker for the First Time Since 2011 after delivering a forecast beating 863 aircraft in 2019. Thats according to airport and tracking sources. A reversal in the pecking order between the two giants airbus and boeing had been expected as the crisis over boeings grounded 737 max drags on into 2020. Patek philippe is one of the few Luxury Brands thats still family owned. The 180 Year Old Company also makes some of the priciest watches on the market. Sharanjit leyl spoke to the fourth generation president thierry stern and asked if hed consider selling the business. Im not willing to sell, the fifth generation is going to take over, to be frank i think they know im not for sale and of course they will a lwa ys for sale and of course they will always try. We are only two Family Companies left. After that lucky said, they all belong to groups but is it good . Im not sure. So at a time when you are seeing a global slowdown, trade wars, economy is slowing, how is that impacting your sales . Slowing, how is that impacting your sales . It doesnt impacted too much. As we are such a small amount of watches, the world, its so big, if you compare yourself to another big company, some people would produce a million watches. I have onlyjust above 60,000. So there will always be people willing to collect those watchers. Does anything worry you in the terms of trajectory that might impact as buyers . Maybe they might stop buying such expensive watches. It depends, you know, depends on the type of watch. To be fair, some people are investing for a watch which was very expensive, like half a million or even millions was frank. Theres a huge trend towards a smartwatch is now. As people say the future. People are going to be paying for this complex mechanical watches anymore and thats what watches anymore and thats what watches are the future. So what do you have to say to that . Im not afraid to be frank. What is nice is for example the smartwatch started. A lot of people started to bring back the watch on the rest. These two have a leather iphone or whatever, every kind of phone. This new watchers they are fun but its not something that will last in terms of product. You will have it for six months or a year and then you gotta change it. Its not the same product and in terms of art, it means also that painting will be gone, scripture would be gone, and i dont believe in it. We have more than just to give a piece of time. We are giving also a piece of art. This is why i believe it will always remain. There you go. Thats it for the Business Briefing this hour, but before we go, here are the markets. Social media addicts, gym junkies and binge drinkers are all being targeted in the armys latest recruitment drive. The appeal is underpinned by research which claims that young people believe they are held back by a lack of self confidence. Heres our defence correspondent, jonathan beale. Where does confidence come from . How you look . This latest in a series of high profile recruitment campaigns is aimed at young people, many of whom research suggest lack self confidence or feel inadequate when comparing the lives to others. You are coming out tonight. The bulk came from the armies £3 million appeal is a confidence last a lifetime. In contrast to the quick fix hits of say social media and fast fashion. Take those dusty
things of your feet. The army hopes to build on the success of last yea rs to build on the success of last years and saw a Record Number of application but still on the 10 of those made it through to basic training. Come on mate, nearly there. Theres been Harsh Criticism over the decision to outsource recruitment to a private contractor. The army centre dramatically improve the system. The army has also introduced to training programmes to help prepare young people who may struggle with fitness advocacy to meet basic entry requirements. But despite claims of progress, the british army is still well below its target s strength. The problem is not just about recruitment stop butter attention to. Butter attention, too. But retention. For more on that story breakfast is coming up at six oclock with Charlie Stayt and louise minchin. Theyll have all the days news, business and sport,
plus rail fares rise by an average of almost 3 today, despite another year of cancellations and delays for many commuters. Will be talking to commuters this morning as they head back to their workplace. All here at six oclock on bbc one. This is the briefing from bbc news. The latest headlines australian officials have ordered a Mass Evacuation from coastal areas of new south wales. Thousands have hit the road as bushfires close in. Israels prime minister, benjamin netanyahu, says hes seeking immunity from prosecution over charges of bribery, fraud and breach of trust. New research has suggested a can be more accurate at diagnosing Breast Cancer that doctors or radiologists. Now its time to look at the stories that are making the headlines in the media across the world gfx we
begin with the independent which has this satellite image of the bush fires raging across south east australia. The blaze has killed at least 17 people and created a plume of smoke thought to be present over an area greater than that of europe. The mail says the wife of ex nissan boss carlos ghosn has described herjoy at being reunited with her husband in lebanon after he fled japan while awaiting trial on corruption charges. Carole ghosn is alleged to have masterminded his escape. Wired magazine hails a new Artificial Intelligence program thats better at spotting Breast Cancer in mammograms than expert radiologists. An international team, including researchers from Google Health and Imperial College london, designed and trained a computer model on x ray images from nearly 29,000 women. In the guardian business pages,
googles parent company, alphabet, has bowed to pressure from International Tax authorities by announcing it will no longer use a notorious tax loophole known as the double irish. On the front of the times, more than 800,000 people in the uk cut back on eating animal products for at least a month last year, contributing to a steep fall in sales of red meat according to research. And finally also in the times, doing a good deed for others could help keep aches and pains away. A new study has shown that altruism makes you less susceptible to pain, leading scientists to suggest that it could be prescribed by doctors. With me is Eileen Burbidge whos a partner at passion capital and a technology entrepreneur. Lets get stuck in. I have to say,
some of the