27/10/2015 BBC Business Live


27/10/2015

Similar Content

Browse content similar to 27/10/2015. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Live from BBC News with Ben Thompson and Sally Bundock.

:00:00.:00:08.

Free to roam - well, nearly - the European Parliament is expected

:00:09.:00:12.

to pass legislation to cut the cost of using mobile phones abroad.

:00:13.:00:15.

Live from London, that's our top story on Tuesday 27th October.

:00:16.:00:35.

After years of complaints and legal wrangling, roaming fees

:00:36.:00:37.

will be slashed - but it won't take effect until June 2017.

:00:38.:00:42.

Also in the programme - as the latest Bond instalment got the royal

:00:43.:00:45.

seal of approval at last night's premiere - we'll assess Brand Bond.

:00:46.:00:51.

The multi-million dollar industry vying to dress, style and brand

:00:52.:00:54.

Oil results, central bank rumours and a first look at UK growth

:00:55.:01:02.

And what is it like to be the most powerful central banker

:01:03.:01:11.

in the world during the biggest crisis since the great depression?

:01:12.:01:17.

We get the Inside Track from Former Fed Chairman Ben Bernanke.

:01:18.:01:22.

And as one company in China says it will FINE its staff

:01:23.:01:27.

for calling their superiors by their official titles, is it

:01:28.:01:31.

Would you call your boss by his or her nickname or do you

:01:32.:01:36.

Let us know - just use the hashtag BBCBizLive.

:01:37.:01:55.

We've all been there - a work trip overseas or a quick few

:01:56.:01:59.

days holiday, and you get home to a pretty hefty mobile phone bill.

:02:00.:02:02.

But it could be a thing of the past when a ban on roaming charges

:02:03.:02:08.

The European Parliament will vote later on the reforms.

:02:09.:02:12.

It's been a long time coming, mired in legal disputes

:02:13.:02:15.

and companies unwilling to forgo often lucrative charges, and it's

:02:16.:02:18.

not all good news quite yet - you'll have to wait until June 2017

:02:19.:02:22.

Well, telecoms operators will only be able to add a surcharge

:02:23.:02:32.

of 5 euro cents per minute for outgoing voice calls - no more.

:02:33.:02:35.

The same for data use - 5 cents per megabyte of mobile internet.

:02:36.:02:45.

And just 2 euro cents for text messages.

:02:46.:02:47.

The cap on charges for incoming voice calls will be determined later

:02:48.:02:50.

this year and is expected to be much lower than for outgoing calls.

:02:51.:02:53.

Let's get more from Alex, who is at the European Parliament in

:02:54.:03:11.

Strasbourg for us. Then outlined the proposals, but not all MEPs are on

:03:12.:03:18.

board. What are their concerns? Most of them like the idea of this, none

:03:19.:03:21.

of them would want their constituents to go away, come back

:03:22.:03:28.

with a big bill, and the very principle of being able to move,

:03:29.:03:34.

travel, work freely between EU states is one of the basic guiding

:03:35.:03:40.

elements of the European Union. It is the detail of the specific

:03:41.:03:45.

proposal. Some of the concerns MEPs have is this has taken such a long

:03:46.:03:49.

time to negotiate, has been so complicated, that they say it has

:03:50.:03:54.

left a few loopholes. It could allow a few extra surcharges to be put in

:03:55.:04:03.

so it is a watered down version. Others suggest mobile phone

:04:04.:04:09.

companies that will be losing out could push prices up for everybody.

:04:10.:04:15.

Those in favour of this legislation say there are safeguards to prevent

:04:16.:04:17.

those things happening, a limit on how much travel you can do and

:04:18.:04:23.

regulations to make sure that telecoms firms don't spread the cost

:04:24.:04:30.

of this elsewhere, but all that concern means despite the years it

:04:31.:04:35.

has taken to get to this point, it looks likely to go ahead but is not

:04:36.:04:42.

quite a done deal. It has been a long, long process and even if it

:04:43.:04:48.

does get voted through we are still looking at 2017 for application. Why

:04:49.:04:54.

such a long time and also, give us the reaction from mobile phone

:04:55.:05:01.

companies to this. Nothing is ever that straightforward in the European

:05:02.:05:06.

Union because the gritty Haixun 01 takes place between 28 countries.

:05:07.:05:11.

The phased approach is because this is part of the deal that has been

:05:12.:05:16.

agreed after lengthy talks. From next year there will be the cost for

:05:17.:05:26.

things like data usage. -- there will be limit. Another reason for

:05:27.:05:31.

the delay is this is wrapped up in another concept, introducing the

:05:32.:05:36.

idea of net neutrality. That is the idea that everything needs to be on

:05:37.:05:40.

the same playing field regardless of where it comes from. That is a

:05:41.:05:45.

complicated concept and because they are interlinked that has slowed the

:05:46.:05:49.

process down. Mobile phone companies, because it has taken so

:05:50.:05:53.

long to get to this point, have had some time to prepare but there does

:05:54.:05:59.

remain that concern from critics who say despite the safeguards, there

:06:00.:06:04.

could be mobile firms who want to recoup the money in other ways.

:06:05.:06:12.

Thank you very much, we will be updated when the vote takes place.

:06:13.:06:16.

In the meantime, let's bring you up with other news.

:06:17.:06:18.

Fast food chain Burger King has opened its first outlet in Mongolia,

:06:19.:06:20.

joining companies from Pizza Hut to Porsche

:06:21.:06:22.

in anticipating an economic boom sparked by copper and gold mining.

:06:23.:06:25.

A large, sparsely populated nation, landlocked between China

:06:26.:06:27.

and Russia, Mongolia still has no McDonalds or Starbucks.

:06:28.:06:38.

Indonesia's president says his country will join transpacific

:06:39.:06:45.

partnership deal. He cut short his visit to deal with the worsening

:06:46.:06:51.

haze situation in his country. Maggi noodles will be back on the

:06:52.:06:54.

shelves across India next month. In May, food safety authorities

:06:55.:06:57.

banned the production and sale of the noodles made by Swiss giant

:06:58.:07:00.

Nestle - after claims they contained That ban was later overturned but

:07:01.:07:03.

400 million packets were destroyed. It is a busy day and you can take a

:07:04.:07:22.

look at the stories as they break online. Among the big companies

:07:23.:07:29.

reporting, BP, but also this story caught our attention about Walmart

:07:30.:07:36.

looking to the skies. In the same way that Amazon has looked for

:07:37.:07:42.

permission to deliver via a drone, Walmart are also looking for that

:07:43.:07:46.

permission. They need approval from the authorities to be able to do

:07:47.:07:50.

that, particularly to fly drones over populated areas. A lot more

:07:51.:08:03.

they're coming. Also, the growth numbers in the UK. Andrew Walker,

:08:04.:08:07.

one of our economic correspondence, talking about that at 9:30am. Keep

:08:08.:08:15.

your comments coming in. We asked you at the start of the programme,

:08:16.:08:21.

what would you like to call your boss? Many of you getting in touch,

:08:22.:08:26.

using words we cannot read out on the television!

:08:27.:08:29.

Let's take you to Asia now, where India's largest carrier IndiGo has

:08:30.:08:32.

launched the country's biggest stock market listing in three years.

:08:33.:08:35.

Rajeshni is following the story from our Asia Business Hub in Singapore.

:08:36.:08:41.

Tell us more. That is right. This is a chance to invest in one of the

:08:42.:08:52.

world's fastest-growing travel markets. This budget airline is

:08:53.:09:03.

India's only consistently profitable carrier, in what is a very

:09:04.:09:07.

competitive market. We have seen other airlines grounded. The

:09:08.:09:16.

government has been forced to bail out another budget carrier. So

:09:17.:09:24.

IndiGo is a real success story. The low-cost airline is earning two

:09:25.:09:33.

thirds of the market. There is a bit of a revival in the IPO market in

:09:34.:09:37.

India right now. A pretty lacklustre session in Asia

:09:38.:09:38.

- as investors wait for news from the US Federal Reserve - America's

:09:39.:09:41.

Central Bank begins two days of deliberations today - even though

:09:42.:09:43.

it's highly unlikely we'll see any Not least because the

:09:44.:09:47.

European Central Bank signalled last week that it could be prepared to

:09:48.:09:49.

inject even more stimulus into the sluggish economy, and there's

:09:50.:09:52.

also that little matter of China's The Bank of Japan also

:09:53.:09:57.

meets later this week. In Europe we're waiting

:09:58.:10:02.

for the first reading of UK economic It's due within the hour -

:10:03.:10:05.

and expected to come in slightly But crucially these numbers won't

:10:06.:10:10.

include the big jump in September's It may be the biggest week of the

:10:11.:10:36.

season but two companies are sure to grab lots of headlines, Apple and

:10:37.:10:51.

Alibaba. With much of Apple's revenue collected abroad, the strong

:10:52.:10:55.

dollar might weigh on the results. M3 Mac is grappling with lower

:10:56.:10:58.

consumer spending. Investors will consumer spending. Investors will

:10:59.:11:00.

want to know how they are coping with the economic slowdown in China

:11:01.:11:06.

-- Alibaba is grappling. America's Central bank begins a meeting on

:11:07.:11:11.

interest rates. No change is expected. Very busy in the states.

:11:12.:11:21.

So much to talk about. Where do you want to start? I think the

:11:22.:11:27.

interesting thing today is the BP News, the key thing is whether they

:11:28.:11:34.

can hold the dividend up. BP is such a massive company, a lot of

:11:35.:11:41.

pensioners depend on that dividend, so keeping that up is important to a

:11:42.:11:46.

lot of people. Just to mention, heard quarter replacement cost

:11:47.:11:51.

profits coming in at $1.2 billion, that is almost half compared to the

:11:52.:11:56.

previous year. No big surprise. A little bit better than expected, the

:11:57.:12:01.

stock was up a couple of percent. What they are trying to do is hold

:12:02.:12:04.

up the dividends, hold up the amount they pay out by reducing

:12:05.:12:08.

expenditure. Capital expenditure keeps coming down, profits are

:12:09.:12:15.

holding up a little bit better than expected, which gives them some

:12:16.:12:19.

chance of maintaining that evidence. The yield on these things is running

:12:20.:12:24.

at 7%. These are very attractive. If you can hold that up, it is the key.

:12:25.:12:30.

We get another snapshot of the UK economy at 9:30am. We will find out

:12:31.:12:37.

what the GDP number did. Expected to come in slightly below the second

:12:38.:12:41.

quarter. That is partly the slowdown in manufacturing. There are two

:12:42.:12:47.

aspect to the UK growth dynamic. The domestic confidence is doing pretty

:12:48.:12:54.

well, 15 year high, what is going on is going well, unfortunately,

:12:55.:12:55.

exports are under pressure, so many exports are under pressure, so many

:12:56.:13:05.

parts of the world have had a bad 12 months. Putting that together, it is

:13:06.:13:12.

still not a bad result. Thank you very much. Mike will return in about

:13:13.:13:19.

five minutes. Other companies reporting this week. It is all

:13:20.:13:25.

happening. We will have all the figures here.

:13:26.:13:26.

We'll get the inside track on life at the centre

:13:27.:13:30.

Former US Fed Chairman Ben Bernanke sits down with our economics editor

:13:31.:13:33.

- to discuss what it was REALLY like to run America's Central Bank

:13:34.:13:37.

during the depths of the global economic meltdown.

:13:38.:13:38.

Oil giant BP has reported a sharp fall in profits blamed

:13:39.:13:46.

Tanya Beckett is in the Business Newsroom and

:13:47.:13:51.

As we just discussed, these coming in slightly better than expected, so

:13:52.:14:02.

we can see the share price up slightly this morning. , -- yes we

:14:03.:14:11.

can, this is a price has been hit by two factors. They are saying it has

:14:12.:14:23.

paid out $50 billion in relation to the deepwater horizon disaster, it

:14:24.:14:29.

is still not completely past that. This is what I think is interesting

:14:30.:14:34.

about this share price. You see it falling about 16% over the last year

:14:35.:14:43.

has fallen further. Investors are has fallen further. Investors are

:14:44.:14:48.

looking at the balance of business oil companies. How much is Upstream,

:14:49.:14:53.

how much is downstream, to what extent are they insulated against

:14:54.:14:58.

projects? They are taking a very nuanced look. It is important, the

:14:59.:15:14.

FTSE 100 has been hit. Just a brief word on GDP figures. I expect them

:15:15.:15:24.

to come in a little lower than in the second quarter. Partially offset

:15:25.:15:26.

because we've not got the retail figures. Also that slowdown in

:15:27.:15:30.

manufacturing. There is a slightly more gloomy

:15:31.:15:40.

interpretation, because of the fall from the Chinese market. That is

:15:41.:15:44.

dented confidence and raised the question, what is happening in terms

:15:45.:15:48.

of the transition of the economy. And there might be some confidence

:15:49.:15:53.

going out. Martin Sorrell of DWP yesterday was saying there is a risk

:15:54.:15:57.

of aversion creeping back into the market. And worries about if people

:15:58.:16:02.

can access credit. That might be affecting how companies are

:16:03.:16:05.

performing, or have done, in the last quarter. Thank you very much.

:16:06.:16:12.

The other big story which is big business implications is Chancellor

:16:13.:16:15.

Osborne now having to rethink his Autumn Statement following the House

:16:16.:16:23.

of Lords voting against his tax credit situation.

:16:24.:16:25.

You're watching Business Live - our top story - the European Parliament

:16:26.:16:27.

is expected to vote through new laws on roaming charges in Europe that

:16:28.:16:31.

could save you a bundle when travelling in the continent.

:16:32.:16:35.

More details on that online. You are looking at the man who had a

:16:36.:16:42.

ringside seat at one of the most turbulent periods of our economic

:16:43.:16:43.

history. From the boom days of global stock

:16:44.:16:45.

markets to the height Ben Bernanke led America's Central

:16:46.:16:48.

Bank - the Federal Reserve for 8 He saw out pretty

:16:49.:16:52.

turbulent times. He was at the helm -

:16:53.:17:02.

and played a crucial role in the He took the bank

:17:03.:17:05.

into uncharted territory and made some bold moves during his time in

:17:06.:17:13.

the top job. He oversaw the takeover of

:17:14.:17:16.

Bear Stearns by JP Morgan He introduced a programme

:17:17.:17:18.

of quantitative easing - pumping hundreds of billions of dollars into

:17:19.:17:22.

the economy, and lowered interest rates 10 times - from 5.25 to its

:17:23.:17:30.

current near 0%. As chairman, Ben Bernanke also

:17:31.:17:34.

increased the Fed's transparency holding quarterly press conferences

:17:35.:17:36.

to explain policy decisions. Some criticised him

:17:37.:17:41.

for not seeing the crisis coming, while others questioned

:17:42.:17:44.

his maverick policies. He has written a book and sat

:17:45.:17:48.

down with our Business Editor The media wouldn't let us forget,

:17:49.:17:53.

the politicians wouldn't let us We went to President Bush to talk

:17:54.:18:04.

to him about the crisis in 2008. He basically said,

:18:05.:18:10.

you guys are in charge, what ever The amount

:18:11.:18:12.

of noise was extraordinary. How difficult was it to

:18:13.:18:15.

make rational decisions? The news was playing it up,

:18:16.:18:20.

as they appropriately should have. Inside the Fed there was

:18:21.:18:31.

a cloistered feeling at times. We were able to sit together

:18:32.:18:34.

and analyse. I always tried to focus

:18:35.:18:36.

on the immediate task. The testimony the next day,

:18:37.:18:44.

the memorandum I was working on, so I did focus and concentrate

:18:45.:18:46.

on what had to be done. Nothing quite as severe

:18:47.:18:52.

as this had happened since the late 20s, early 1930s, how prepared was

:18:53.:18:55.

the Fed as an institution to deal There had been some work done after

:18:56.:18:58.

9/11, which obviously disrupted the There had been some work,

:18:59.:19:08.

contingency planning, things of that sort, but nothing really

:19:09.:19:17.

prepared the Fed or anyone, really, for a crisis of this scope and

:19:18.:19:20.

nature as the one we saw in 2008. One of the things you point out is

:19:21.:19:24.

that over here in the UK the governor of the Bank of England

:19:25.:19:27.

was very concerned about what The idea that if you bail banks out

:19:28.:19:31.

they are then more likely to take risks in the future because they

:19:32.:19:39.

know they are going to be saved. Why were you less concerned about,

:19:40.:19:42.

in a sense, That is

:19:43.:19:44.

a perfectly legitimate concern. Early on in 2007 we were trying to

:19:45.:19:52.

balance those issues, try to figure But there comes a time

:19:53.:19:55.

when the situation is sufficiently severe that you have to

:19:56.:20:04.

respond. In order to punish some individuals

:20:05.:20:07.

on Wall Street, you don't want to What we tried to do,

:20:08.:20:10.

and what we could, was to make sure the companies that

:20:11.:20:19.

were being helped did not benefit Pulling together all of your

:20:20.:20:22.

experience over the last few years, do you think politicians, and indeed

:20:23.:20:26.

people, expected rather too much of central banks, and should have

:20:27.:20:29.

expected rather more of governments? Yes, I think that way too much

:20:30.:20:31.

of the burden has been placed People complain about quantitative

:20:32.:20:34.

easing, low interest rates, well, the central banks are trying to use

:20:35.:20:52.

the tools they have to accomplish If we had a more balanced monetary

:20:53.:20:55.

mix, for example, the US, as well as Europe and the UK, central banks

:20:56.:21:04.

could do less and some of those Have the politicians

:21:05.:21:07.

learned those lessons? I think the politicians have been

:21:08.:21:12.

too focused on near-term budget cuts You became a sort of brand

:21:13.:21:15.

for the world. On you Tube, all over the Internet,

:21:16.:21:20.

was this idea of "The Bernanke" saving the world -

:21:21.:21:28.

how did that feel? CHUCKLES I was a big part

:21:29.:21:31.

of both those in favour of what we were doing, and those who

:21:32.:21:34.

opposed what we were doing. It wasn't always comfortable,

:21:35.:21:38.

but it comes with the job. In

:21:39.:21:45.

CHUCKLES That should do they should get their

:21:46.:21:48.

on programme. Mike is back to look at some

:21:49.:21:49.

of the papers. We have to talk about James Bond.

:21:50.:21:59.

Premiere last night. We know it is a moneymaking machine, but this

:22:00.:22:02.

article in the Financial Times lays that out even more clearly. ?2500

:22:03.:22:09.

tuxedo, ?500 boots, things you don't even see in the film they are paying

:22:10.:22:13.

a lot of money to be involved. That's right. Couple of angles to

:22:14.:22:18.

this, one is the power of the brand. Classically people thought of it as

:22:19.:22:22.

a British brand. If you look at the companies involved, they are not all

:22:23.:22:26.

purely British brands. There is an international aspect of this. There

:22:27.:22:32.

was the ability to use that. As you say, ?2500 for a tuxedo. I can

:22:33.:22:37.

safely say I went been buying one of those, but that is the association.

:22:38.:22:40.

CHUCKLES It is not as if you will go out, you

:22:41.:22:45.

saw it in the film, I want that watch, that suit, it is just the

:22:46.:22:52.

association with the brand and power that Bond brings. That's right. You

:22:53.:22:56.

don't have to get straight sale. If you look at some of the designers

:22:57.:22:59.

involved, selling through regular stores that we go to, like high

:23:00.:23:04.

street shops. If you can make that transition then it becomes a

:23:05.:23:07.

powerful marketing tool, and that is what you can see here. Quite

:23:08.:23:12.

incredible. Let's go from one British brand to another. Oxford and

:23:13.:23:16.

Cambridge. Looking at the competition between them. We think

:23:17.:23:20.

of the boat race, but this is actually about technology, tell us

:23:21.:23:26.

more. Classically, if you go back to the 1970s, I was born in 1970, the

:23:27.:23:31.

Trinity College in Cambridge set up a science park to try and harness

:23:32.:23:36.

some of the research into profitable business activities. That is one of

:23:37.:23:45.

the great industries out there. Oxford, to some degree, is playing

:23:46.:23:49.

catch up. But it is no longer, it has caught up. And it is way ahead

:23:50.:23:55.

if you look at this chart. 169.2 million from Oxford, and

:23:56.:24:04.

Cambridge 162.8 million. It is about selling the research and making

:24:05.:24:09.

money from it, isn't it? Exactly. If you have the ideas in the research

:24:10.:24:14.

centres, centres of excellence, making cash on the back of that is

:24:15.:24:18.

clearly key. To have two centres is good news for us as a country. One

:24:19.:24:22.

of the challenges we have always had is to maintain, you know, the kind

:24:23.:24:30.

of high-tech and productivity growth. The two macro competing is

:24:31.:24:36.

great. -- the two macro competing is great.

:24:37.:24:40.

What do you call your boss, what did your staff call you?

:24:41.:24:48.

Does he want to say. It is all about being friendly,

:24:49.:24:55.

nicknames, improving this idea of a harmonious workplace. Does it really

:24:56.:25:00.

work? We use Christian names. Friendly. My name is Mike, that is

:25:01.:25:05.

what people call me. That works reasonably well. The interesting

:25:06.:25:11.

thing about this is it indicates an economy that is trying to open up

:25:12.:25:14.

and make itself more UK user-friendly. A very century

:25:15.:25:19.

dominated economy where you call everybody boss is the kind of

:25:20.:25:24.

classic historical view. But the idea of creating this culture of

:25:25.:25:28.

inclusiveness and friendliness, but then they will fire you!

:25:29.:25:36.

If you don't behave. -- they will fine you. Hopefully the money will

:25:37.:25:39.

go to a charity, so something good can come out of it if it goes down

:25:40.:25:44.

that route. Thank you, Mike, for being on the programme. Thank you

:25:45.:25:48.

for your messages on Twitter today. We have mentioned some, but some we

:25:49.:25:53.

could not say out loud. Too naughty. Yes, keep them coming. Goodbyes. --

:25:54.:25:59.

goodbye. The clock change tends to make you

:26:00.:26:16.

think about approaching winter. But where the sun breaks today you might

:26:17.:26:18.

Download Subtitles

SRT

ASS