And we look back at the past week in business, when us markets had their worst day since november, and the economy was the main focus in the uk election. Thats all with our Business Editor, simonjack. We always want to hear from you. Its easy to get in touch with the programme just use the hashtag bbcbizlive. Hello and welcome to Business Live. It is friday, we have got that friday feeling. We start in france where the new president , emmanuel macron, says he expects no honeymoon from the public after his first week in power. He now has to try and win a majority in next months parliamentary elections and implement the Economic Policy he says can turn the country around. So what is Macron Economics and can it solve frances problems . Macron calls himself neither right nor left, hes a centrist, and, sure enough, the team he announced on wednesday is a diverse mix of figures from the left, right and centre. He says his Economic Policy is based on the nordic model. Whats that . Basically, it mixes Spending Cuts on the one hand and giveaways on the other. He plans to cut spending by 60 Billion Euros over the next five years. The Civil Service will be hit hard 120,000 jobs will go. But over the same period he has pledged 50 Billion Euros worth of stimulus measures. That includes cutting the Corporate Tax rate from 33 to 25 and lowering the tax burden on households. Its a similar story with free trade. As a former banker, hes broadly for it. But hes also talked about creating a protective europe. As in protectionism. You know how we hear trump saying, by american, by american . Will he wa nts by american, by american . Will he wants us To Buy European. He wants to stop Non Eu Companies taking over key industries. Frances jobless rate is almost double that of germanys at 9. 6 . Many employers blame strict labour laws, like the 35 hour working week. But they are fiercely defended by unions. So where does macron stand . Youve guessed it, somewhere in between. He wants to keep the 35 hour work week, but change the way the law is applied to make it easier to hire and fire. Is it isita is it a tall order . Jean Pierre Lambert is a Managing Director at the Investment Bank kbw. He has to act fast, doesnt he . Do you think the team he has assembled around him will help him crack that really difficult problem of reforming frances labour laws . Plenty of other administrations have failed. He has an excellent economic minister, a Budget Minister who is a rising star in the republican party, and he has got 18 that is ready to fight. The first bite will be the parliament in the elections which are going to take place, will he get the majority . So far the polls indicate he may get the majority, which would be an achievement. Incredible, given this party was only set up just over a year ago absolutely. Not everything in france is decided in parliament, as you alluded. Do you think the timing here is crucial, because if he gets it through in the summer plenty of people will be on holiday and less inclined to strike . A good point yes, a good point, and he has to be prepared to take hard action and face the repercussions if people are fighting, he has to take a hard stance and he is a good character to do that. This is what i dont understand, france runs a deficit, for the uninitiated, that means france spends more than it earns from tax, right . He wants to make these big tax cuts, so they already spend more than they make in tax, can they afford that . He has a Balancing Act to implement. Critical for him is to gain credibility again with germany and because previouS Administrations have tried to deliver, including francois hollande, but did not deliver reform, if he wants the support of germany he needs to be the first to put his house in order, which includes respecting the budgetary rules said added european level, the 396 rules said added european level, the 3 deficit, and he wants also to unemployment because he wants to give more to the young people, 25 unemployment is fairly high. How do you think is planned To Buy European will go down with Angela Merkel . Germany has concerns about non European Companies buying Critical Industries so this issue, i dont think she was that much opposed, it is a subject for discussion, it may happen. Thank you very much for coming to talk to us. Lets take a look at some of the other stories making the news. Greeces parliament has approved a new package of Austerity Measures needed to release the next instalment of its multi billion dollar bail out. Protesters clashed with police in Central Athens as mps voted on the tax rises and further cuts to pensions. Eurozone finance ministers meet on monday to decide if greece has done enough to receive a e7. 5 billion loan plus debt relief. Brazils stock market has plunged amid Corruption Allegations against president michel temer. The main Ibovespa Index closed down more than 8. 8 trading was briefly halted earlier in the day after losses of more than 10 prompted Circuit Breakers to kick in. President temer was forced to deny a Newspaper Report that he had given consent to paying off a witness in a huge corruption scandal. The Supreme Court has authorised an investigation into the allegations. Leaders from the Apec Group Of Asia Pacific Nations are gathered for a summit in vietnam this week. They are pushing to save the Trans Pacific partnership trade deal. Pulling out of it was of course the first action of president trump. Tim mcdonald is in singapore. Good to see you. This is the 11 nation is now going, you know what . Maybe we can do this without the United States yes, it will be an interesting meeting because on the one hand you have the countries hoping to be part of the tpb originally now scrambling to salvage it in some way, shape or form, and on the other hand the us Trade Representative who will represent the president , as you mentioned, who seems to have far more protectionist impulses than his predecessors. Many ministers will try to get face time with him to see if there is wiggle room with his America First policies and to seek a bit more clarity about what they mean, but it seems pretty unlikely there will be any major deal that we might see coming out of this meeting but we at least might get a sense of whether the tpp is completely dead 01 whether the tpp is completely dead or maybe just a little bit alive, and there will also be discussions on the sidelines of the Regional Economic comprehensive partnership, chinas competitive to the tpp. Even nafta might come up given that canada and mexico will be there as well so a lot of the agenda will be keeping a close eye and we will be interested to see what comes out of it. We will talk to use them, have a great weekend lets quickly stay with the markets. That was the dow yesterday closing on wall street, asian market slightly higher. This is pretty much of the back of the better performance we saw overnight on wall street. A moderate recovery. If we look at europe, following suit at the moment, but lets not forget the trump slump has not fully gone away because the scandal surrounding the president S Administration is still pretty much in the headlines. On thursday, the Trump Administration notified congress that it will start talks to renegotiate the north america Free Trade Agreement as soon as practicable. President trump has called the 1990s Nafta Deal with canada and Mexico A Killer of usjobs, and made shaking it up a campaign pledge. Its a big worry for mexicos huge Auto Industry and the global car makers that have invested heavily there, as Michelle Fleury reports. San luis potosi in central mexico. The Auto Industry here has been booming for more than 20 years. The country is now the fourth largest car exporter in the world. But could this boom be under threat . It was meant to be a shining example of free trade, but today its a monument to Donald Trumps brand of protectionism. These steel beams are all thats left of a 1. 6 billion investment that ford was making to build a plant here. Jose puebla 0rtiz shows me the deed to the land he sold to ford. With the money, he bought a truck to work on the ford plant. For a while, life was good but it didnt last. Translation some people came to the plant and sent us home. They said there was no entry any more. The trucks couldnt go in any more, it all collapsed. Not just for the truckers but for everyone. Ford is keen to emphasise the Market Forces which drove the decision to abandon its plant in san luis potosi, but ceo mark fields admits president ial rhetoric is also a factor. At the end of the day, we have to do whats right for our business and of course the administration and the congress, they have the ability to look at tax policy, trade policy etc, and thats the Business Environment that we react to. And now donald trump has set about renegotiating the entire north american Free Trade Agreement, or nafta, but a more protectionist uS Administration could undoubtedly do great harm to many livelihoods in this part of mexico. Michelle fleury, bbc news, san luis potosi. Joining us is lucy macdonald, c10, Global Equities at Allianz Global Investors. Thank you for coming in. Lets talk about the trump slump that we have seen about the trump slump that we have seen this week. There has been some reversal in the markets, why is that . Two reasons, one is that the level of cash is still quite high, around 5 , so there is cash available and i think the second reason is corporate profits are still quite strong so the Earnings Season still quite strong so the Earnings Seasonis still quite strong so the Earnings Season is coming through, broadly across the world we have seen companies upon earnings but also on sales. Those two things mean there are some fundamental underlying strengths, despite the fact that you do have relatively high valuations in the us in particular and the prospect of liquidity being taken out of markets by the fed. So it is going to be between those two factors, in the meantime volatility was very low, we have had increasing spikes of volatility and i think we will get more of that. I noticed yesterday we saw a lot of the emerging Market Currencies go. I asked an expert, why are they dropping . He said, the us. Emerging economies rely on us growth, if the us isnt growing, they are not growing. That is right, yesterday the trigger was brazil, and when there is a concern things tend to correlate, you get the rising volatility and a Rise Population and thatis volatility and a Rise Population and that is what we saw, so all emerging markets behaved as if they were brazil, so in the long term you are right, they depend for their growth on the us. You are going to come back later . We will be talking about some of president trumps policies, including perhaps paid maternity and Paternity Leave for families in the us. We will have to see. Still to come. We look back at the past week in business, when us markets had their worst day since the president ial election, and the economy was the main focus in the uk election. Thats all ahead with our Business Editor, simonjack. Youre with Business Live from bbc news. One of britains airports is moving its control tower around 100 miles away from the actual runway. London city airport is to become the first in britain to abandon its birds eye view of the runway and use Digital Technology to monitor planes remotely. They say it will make managing the planes safer and more efficient. Theo leggett can tell us more about whether this really will make it safer . Yes, that is what they are saying. At the moment at London City Airport as with many others, the controller is looking after the aircraft when it are is looking after the aircraft when itare on is looking after the aircraft when it are on the ground, their movements had to be choreographed carefully as you can imagine and it is done by people looking out of the window basically. What the british air Traffic Control people are trying to do is, instead of having that tower with people looking out of the window, you have a whole range of High Definition cameras and the images from them will be beamed onto a large screened against the wall in this remote controlled centre. These are not Small Screens like with cctv monitoring stations, they are big things that look like windows and they are piping in sound as well so for the controllers it is as well so for the controllers it is as if they are there themselves. And on those screens, they will be able to put up radar data and things like that to make their life easier. What they are saying is that this will be a better solution than having people ina a better solution than having people in a control tower at London City Airport looking out of the window. We have seen what cyber attacks, the havoc they can wreak on services, so what about air Traffic Control, is there not a risk of blackout . This is the obvious concern when you do anything remotely but the people in charge of this say that it is proven technology, it has been used in sweden since 2015, and they say they have a lot of redundant system so if one part, if it goes down, another can take over and they say it will be absolutely safe. Obviously safe. Thank you. Lyon, the Healthy Fast Food chain, wa nts to ta ke lyon, the Healthy Fast Food chain, wants to take on the us. They are helping to Fund Expansion with a £25 Million Investment of cash . We will see if it works. Youre watching Business Live. France gets ready for Macron Economics. But does the new president have the right formula to bring back jobs and growth . And now lets get the inside track. The s p 500 and the dow saw their biggest one day fall since september, this week, as investor hopes for tax cuts and other pro business policies faded after reports that us President Donald Trump tried to interfere with a federal investigation, setting off alarm bells on wall street. And here in the uk, the conservatives launched their election manifesto, with social care shake up as one of their top agenda. With all parties having pledged their election manifestos, what do they mean for people and the economy . Well, lets find out with our Business Editor simonjack. We have dragged simon in on a friday. Im always here on a friday before we talk about the uk ma nifestos, before we talk about the uk manifestos, lets touch on the trump slump. I was interested in what lucy had to say, we should put it in context, there was the worst one day fall for many months on wednesday, down 373 points, but it has been on a hell of a tear them up 16 since the election. When you have had a run like that, people look for moments to take some chips off the table and bank some profit. We have also had incredibly low volatility which is unusual. People got skittish about it. What matters is what you mentioned about a tax reform, if people think that is in jeopardy, that has been driving the market, yes, corporate earnings, but the idea that the burden on businesses will be reduced by major tax reform. Everybody seems to agree in the us that that needs to happen. Even though donald trump might be having his troubles with his fbi director and what have you, if you thought the Tax Reform Plan was in danger you would see some falls in the stock market. It looks pretty well valued and a lot of people think it looks a bit hot. And looking ahead to possible Interest Rate rises by the fed next month, still likely that will happen. The market are figuring 70, 80 probability of that happening and also, as bonds begin to fall at Interest Rates go up, some people are thinking that one of these days, the great rotation from buying bonds, people say it has been a good market for a while, this is government debt. As Interest Rates government debt. As Interest Rates 9 up government debt. As Interest Rates go up and inflation begins to pick up, stocks are more attractive because you get a bit of Inflation Protection because the goods and Services Companies sell go up in line with rising prices. It is a much more inflation safe investment. A better return at the end of the day. Quickly switching gears, the uk political parties, their manifestos are out, the election pledges. On this menu of options, some strong flavours compared to previous years. You have the labour party wanting to nationalise the railways and renationalise the royal mail and get involved in the energy companies. A very left wing agenda from the labour party. What you would expect from Jeremy Corbyn who has been setting that store ad for some time but what is perhaps more contract that swagger more surprising, the conservatives used to say, the markets get on with it what is more surprising. A massive change in tone, they are saying babel capped Energy Prices and get involved in markets, have a close look at any ta keovers markets, have a close look at any takeovers make sure they are any public interest. Much more of a lurch to the left the right if you like. I have family visiting from australia, and they were saying, they were stunned. If they are watching, they are lefties, labour, but they are saying that the Tory Ma Nifesto but they are saying that the tory manifesto is Something Like the labour party. It could read like an Old Labour Party manifesto and the interesting thing is, businesses i have been talking to Chief Executives and getting their reaction, and they say at the moment they feel pretty friendless, being duffed up from the left and the right nobody wants or Needs Business Endorsement at the moment. The Political Climate has changed and hanging out with the most rich and hanging out with the most rich and powerful people, the tourist used to be relaxed about it but they may have realised it does not go down well also the tories used to be relaxed. The Business Community is feeling a bit worried that their interests are is feeling a bit worried that their interests a re not is feeling a bit worried that their interests are not being noted. Thank you very much. In a moment well take a look through the business pages, but first heres a quick reminder of how to get in touch with us. The businesslike page is where you can stay ahead with all the breaking Business News the Business Live page. We will have analysis from all of our editors around the world. And we wa nt of our editors around the world. And we want to hear from you as well, get involved on our web page on the bbc website. We are on twitter and you can find us on facebook. Business live on tv and online whenever you need to know. What other Business Stories has the media been taking an interest in . Lucy macdonald, c10, Global Equities at Allianz Global Investors is joining us again to discuss. Thank you for coming back, you have been going through the pages and the interesting stories in the Washington Post is that the us could get the first family benefit under president , but will we see this given the spotlight on the federal investigation . Will this be a policy he can push through . It would be quite radical. Will any of them get through . the tax reform is most important, but this is catching up with the rest of the civilised world. 21stcentury america. Getting a bit more support for working pa rents a bit more support for working parents really. A bit more support for working pa rents really. That a bit more support for working parents really. That is what we have in europe. And we can see that it is entirely compatible with business working well. And it has come at a point where there are a lot of other federal cuts going on across the board federal cuts going on across the boa rd and it federal cuts going on across the board and it seems like it is ivanka trump that is pushing this through. That is what is said and its not ridiculous. For the uninitiated who might not know the american system, they get two weeks, a mother gets two weeks of maternity and paternity probably doesnt exist. It really is not very civilised. Compared to what is in europe. What have you chosen for the second story . This is a Fizzy Drink Thatis Second Story . This is a fizzy drink that is taking australia by storm have you heard of this . It is a new fizzy drink that is low sugar and it is giving coca cola run its money. There is real opportunity here. There is real opportunity here. There is real opportunity here. There is and you can see it across the food and factoring areas with a trend towards healthy food and drink. That is not surprising. I havent actually had any myself so i cant comment. I will have to ask my australian family, i have never heard of it. It is green the base. It is seems like the Healthy Eating market is the way to go. It is a clear trend. In all consumer markets, it is a very long structural trend and it doesnt surprise me. Have a great weekend, we did not even talk about the painting. 110 million thats it from Business Live today. Aaron is launching his new show in the afternoon soon, it is his last day today. Goodbye the last half year or so across the uk the weather has been drier than normal but that trend has been smashed in the last couple of days. Faversham in kent divvied up 70 millimetres of rain in the last couple of days, much more than the whole of the month of may picking up. It has been washed out in central and Eastern England and this area of rain will push northwards. Not particularly heavy but a dreary day across eastern counties and eventually it moves into Eastern Scotla nd eventually it moves into Eastern Scotland through the afternoon. Elsewhere, the brightest weather across Western Areas but through the afternoon we will start to see some showers breaking out, some stunning heavy and thunder rates and the heaviest across wales, the midlands, central and Southern England and the south west. Temperatures should reach the mid teens, 16 or 17. In northern ireland, a number of showers in the afternoon and also some in western scotland. The rain moves into eastern areas, keeping things cool in aberdeen with temperatures around 90 degrees with the wind off the north sea. 0vernight the Rain Gradually Trysts Northwards and eventually it should turn drier in North East England for a time. The clearer skies towards the west of england and wales, and northern ireland, that will make it quite chilly in rural areas with temperatures at three or 4 degrees in the coldest spots. We did is not looking too bad, sunshine and showers on saturday, sunday it should be largely dry. This is saturday and the rain in scotland to start the day, others were bright enough to start, Chilly First Thing but through the afternoon those showers will break out again. Some could be on the heavy side with some thunder. The rain will clear in scotla nd thunder. The rain will clear in scotland but showers followed quickly on through the afternoon and temperatures around 1a to 18 degrees but still quite cool in north east scotland. On sunday, we start to see this High Pressure building in from europe with southerly winds moving into eastern counties and it should start to feel warmer with temperatures up to the 20s. Still some rain in the north west but otherwise a dry day for most. That is your latest weather. Hello, its friday, its 9am, im Martine Croxall welcome to the programme. This morning, weve a Special Report on the growing number of children in america undergoing electric shock treatment, where a current is passed through their brains. The controversial therapy is being used on severely autistic children who self harm. Is it cruel, or does it improve their quality of life . There is no doubt that ect is the only reason that jonah there is no doubt that ect is the only reason thatjonah has any quality of life. It is traumatic rain injury, very much like somebody who hasjust had a severe concussion. Its been the week of the manifesto, with the main parties releasing their plans for how they would rule if elected to government. Has any of it made a difference in the way youre going to vote . We
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