Transcripts For BBCNEWS World Business Report 20170213 : vim

And canadas Prime Minister, Justin Trudeau, hold different views about many things, but can they agree on trade when they meet later today . And japans economy grew again, thanks to trade, but could rising us Protectionism Damage its slow recovery . Welcome to World Business report. Im susannah streeter. In a moment, the Chief Executive of International Airlines group, willie walsh, tells us about brexit and donald trump. But first another day, another world leader arriving to meet President Trump at the white house. Today it is the turn of canadas Prime Minister, Justin Trudeau. He differs widely in opinion from his host on a variety of issues, including immigration, free trade and foreign policy. So just how important is canadas relationship with the United States . Their countries share one of the biggest Trading Relationships in the world. In 2015, 662] billion worth of goods and services flowed across the almost 9,000 km border. That works in the United States favour at the moment, to the tune of 12. 1 billion, because whilst canada sells more goods to the us than the other way round, america more than makes up for it when it comes to the services sector. 75 of all canadian exports go to the United States, so good relations will be important to businesses across canada. The value of Us Canada Relations has seen massive growth since 1994, when the north america free trade agreement, signed by president clinton, came into force. But during his campaign mr tump claimed nafta was the worst trade deal in the history of this country, and shortly after taking over at the white house, he said he would meet the leaders of canada and mexico to renegotiate nafta. The we are also meeting with the Prime Minister of canada, and we will be meeting with the president of mexico, who i know, and we are going having of mexico, who i know, and we are going e anybody having {leeicigfif but 3; w. To laasee. If ezeeee 5. 4. ,; as; £45574 . . 7. Ea. 55 9. 22. 44. 5. 4. , £457. . Fensgfltfis ,on start renegotiating nafta, on immigration, and on security at the border. And mexico has been terrific, actually, the rydzek. Terrific. With me is us political commentator kate andrews. And just in trudeau has been highly critical of many of mr trumps policies so far, yet securing a trade deal or continuing with the current deal is crucial for canada, isnt it . He will be walking a fine line, but the difference is that just in trudeau has been very vocal, you are right, about his opposition to many of mr trumps policies, especially on immigration front. We havent seen him roll any of those back, we have seen him talking about canadianjobs, back, we have seen him talking about canadian jobs, he was talking about trade deals, he clearly does not wa nt trade deals, he clearly does not want to go in and have tough conversations about immigration. He will try and focus on the economy, all the way. And part of that is about spending. And actually the Trump Administration wants canada, as well as other nato members, to spend a lot more on defence spending. Is that likely to be quite an issue for canada, politically . Well, canada and Justin Trudeau have said they were up their spending but it isa said they were up their spending but it is a small increase,. 01 , or Something Like that. When it comes to those who are involved in nato, canada is certainly not putting up the amount they will are supposed to be posting annually. Will this be the main issue . Probably not, when it comes to alliances we always talk about the us and the uk and that Special Relationship at the real Special Relationship at the real Special Relationship at the real Special Relationship in trade is between canada and the United States, tourists going back and forth daily, millions of visitors to each others countries a year, and donald trump will not want to make an enemy here. He will be pleased that they are offering more spending, even as a symbolic gesture. Some decisions mr trump has made have already been beneficial for canada, such as restarting that Keystone Xl Oil pipeline. For canada, such as restarting that Keystone Xl Oil pipelinelj for canada, such as restarting that Keystone Xl Oil pipeline. I think they will differ when it comes to Environmental Policies but trudeau will recognise that trump is investing as much as he is in canada. Even if that is not intentional, it will have a trickle down effect. Donald trump has been very quiet about negotiations between canada and the us when it comes to nafta. Most likely it would not have a huge influence on canada, and if i were trudeau i would be trying to get a grip on where mr trump is pointing his finger south, and that is where the real implications for trade are going to come from, not because donald trump is directly trying to cut off trade with canada but because his relationships with other World Leaders could certainly impact oii World Leaders could certainly impact on canada. Thank you very much for your time. Time for a new series now about the big challenges facing the Global Airline industry. Late last year, British Airways owner International Airline group was forced to cut its profits forecast, due to a weaker pound following the eu referendum. So is Economic Uncertainty surrounding brexit something that keeps iags Chief Executive willie walsh awake at night . He has been speaking to our Business Correspondent theo leggett, who asked him what he would like to see from brexit negotiations . Well, it affects everybody in europe. So it is not an issue that will be isolated to the united kingdom. It will affect everybody in europe. And that is why i say it is in the interests of everyone in europe, and it is something that i imagine all politicians would be conscious of. There are 900 Million Consumers who have benefited from the regime that is in place, and that needs to be maintained. And i believe it will be maintained. You say you are confident that those negotiations will go as you want, that you will get what you want. If that you will get what you want. If that doesnt happen, what is the worst Case Scenario . I dont think there is a worst Case Scenario. We deal with Aviation Regulation on a global basis and i think people are fixated on the uk and europe obviously in the context of brexit, but many countries we fly to have restrictive regimes in place and we have had to put structures in place to deal with that. We are confident that, whatever the outcome, if there isa that, whatever the outcome, if there is a more restrictive regime, we will be able to adapt our structures and Operating Procedures to continue to operate. It wont be as efficient, it probably wont have the same consumer benefits, i dont think there is a Doomsday Scenario that would cause any concern. Of course, uncertainty at the moment isnt just confined course, uncertainty at the moment isntjust confined to the uk or even europe. There is a new administration in the white house. What donald trump and his people have done already has surprised many people. They have been a ban on travel from seven different countries, for example. How much of concern is that for you . It is something that causes concern for individuals. From an industry point of view, again, we are able to adapt. We have seen these measures in the past, they come in unannounced and it takes us a bit of time to adjust. We adjust and then we move on. When you look at aviation between the us and europe 01 aviation between the us and europe or the us and the uk, it is definitely something that has worked very well. The us industry, the uk industry, the european industry, i think we are all aligned. We want to see the current Open Skies Regime continue. We dont want to see new barriers put in place. Japans economy grew for a fourth straight quarter in the final three months of last year, thanks to strong exports, but there are concerns that rising protectionism in the United States could mean that a sustainable recovery is some way off. Sharanjit leyl is in singapore for us. Hello there. So the weaker yen boosting exports . Thats precisely it. And of course, you talked about Protectionist Rhetoric. That has been quelled somewhat, at least the concerns have been quelled somewhat, after the weekend meeting between President Trump and japanese Prime Minister shinzo abe in washington, where we saw President Trump steer clear from any rejectionist rhetoric, and indeed, as you say, those exports getting a huge boost from the weaker yen, and that is really what has helped japans economy in the last quarter. The Wea Ker Economy in the last quarter. The weaker yen has always listed exporters profits, being repatriated back from overseas from markets like the us which benefit from the us dollar, and that is the kind of Protectionist Rhetoric we have heard from President Trump in the past, especially when he has been on his campaign trail. He says japan uses its Monetary Policy to verbally intervened to weaken the yen, to boost its exports, at the cost, huge cost, for the us and american trade. In fact, japan had the second largest Trade Surplus with the us last year after china, and in terms of its own growth, private consumption, which accounts for some 60 of japans private consumption, which accounts for some 60 ofjapans gdp, it barely grew at all. In fact, it was flat. There is a lot of concern about japans overreliance on exports for its growth in the future. Lets have a look at how the markets have been faring. Uplift for the nikkei, the hang seng in positive territory, slightly down in bombay. The dollar versus the yen, you can see the impact on that meeting of Prime Minister shinzo abe and donald trump when they met at the weekend. So the weaker yen helping boost japans exports. The weekend. So the weaker yen helping boostjapans exports. That is all from me for now. Britains biggest supermarket has pledged to take immediate action, after a bbc investigation reveals two thirds of deals on the shelves are out of date and dont work at the checkout. Over three months, a team from bbc inside out visited 50 branches of tesco across england, and found multi buy deals still being advertised days, weeks and in some cases months after the deductions were no longer being applied at the till, as Jonathan Gibson reports. When we see a special offer on the supermarket shelves, we expect to pay that price at the till. It is not always the case at tesco. And here is why. The bbc visited 50 tesco Stores Across england, and was overcharged in 33 of them. Tesco did not want to do an interview, but after reviewing the bbcs evidence said. But that is just the start. Following our investigation, britains biggest supermarket has said it will be doublechecking the a ccu ra cy said it will be doublechecking the a ccu ra cy of said it will be doublechecking the accuracy of every price in every store. That is more than 3500 Stores Across written. Britain. Coming up at 6 00am on breakfast, dan and louise will more on that story and the rest of the news and sport, including a report on the reduction of the number of people undertaking cosmetic surgery in the uk. Apparently the number of operations carried out in 2016 was the lowest for nearly a decade, and the decline is blamed on the rise in popularity of procedures that dont require surgery. The top stories this hour thousands of People Living below americas tallest dam the oroville dam in Northern California have been ordered out of their homes after a spillway or Overflow Channel seemed to be in imminent danger of collapse. Big crowds of protesters have again rallied in major romanian cities, calling for the two month old government to resign. In the largest demonstration in central bucharest, people formed columns to represent the nationalflag. The United States, japan and south korea have requested an urgent meeting of the United Nations Security Council to discuss north koreas latest missile test. The medium range Ballistic Missile was fired into the sea early on sunday. Adele has been the big winner at the grammys the music industrys annual awards ceremony in los angeles. Her awards included best song and best record for hello. David bowie won five awards for his album blackstar. Now it is time for our newspaper review. We start with the south morning china post their front page includes an article on north koreas Ballistic Missile test the first by pyongyang since President Donald Trump took office. The paper reports that china may be more willing to support further sanctions against north korea because of the incident. Next up its the frankfurter allgemeine, with a picture of Frank Walter Steinmeier whos just been picked as germanys president. The former Foreign Minister was elected by a special assembly with an large majority. Greece must agree a deal or risk triggering a euro crisis thats the headline in the business section of the telegraph referring to the country being under pressure to bring in further austerity measures. A strong message from the uaes Prime Minister as the world government summit kicked off in dubai. The gulf news reports on Shaikh Mohammed telling the meeting that the uae will not tolerate any kind corruption. The Financial Times reports on voters in switzerland rejecting a plan to reform the countrys Corporate Tax system