Browse content similar to 03/05/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :00:09. | :00:18. | |
HSBC blames "extreme levels of volatility" for a 14% slump | :00:19. | :00:21. | |
That is our top story on Tuesday, May three. | :00:22. | :00:44. | |
Alongside HSBC's slump in profits, UBS also reports a sharp downturn. | :00:45. | :00:46. | |
We'll assess what it tells us about the state | :00:47. | :00:48. | |
Also in the programme, Australia slashes | :00:49. | :00:52. | |
interest rates for the first time in a year, as it battles | :00:53. | :00:54. | |
Asian stock markets opened higher on Tuesday | :00:55. | :00:59. | |
following positive trading sessions in the US and Europe. | :01:00. | :01:09. | |
And how do you listen to music? | :01:10. | :01:10. | |
This is Business Live from BBC News with Ben Thompson and Sally Bundock. | :01:11. | :01:59. | |
Technology has changed the way we listen, | :02:00. | :02:00. | |
The boss of the world's biggest music platform, SoundCloud - | :02:01. | :02:04. | |
And as new figures show parents are collectively paying billions | :02:05. | :02:07. | |
every year to help children buy their first house, | :02:08. | :02:10. | |
we want to know, do you rely on Bank of Mum and Dad | :02:11. | :02:13. | |
Let us know, use the hashtag, BBC BizLive. | :02:14. | :02:16. | |
We've had an update in the last couple of hours from | :02:17. | :02:19. | |
It says profits were down 14% in the quarter, to | :02:20. | :02:25. | |
It seems that Tata are about to enter a deal with liberty house. | :02:26. | :02:32. | |
This is the first concrete bid for the group since the Indian | :02:33. | :02:39. | |
conglomerate Tata put up the UK operations for sale. We want to do | :02:40. | :02:42. | |
to make you aware of that news in the last few minutes. Returning to | :02:43. | :02:50. | |
the top story. Banking giant HSBC says that profits were down 14% in | :02:51. | :03:05. | |
the last quarter, down to $6.1 billion. | :03:06. | :03:08. | |
Rival UBS also reported its results today with a 65% drop in first | :03:09. | :03:11. | |
quarter profits while French banking giant BNP Paribas managed to provide | :03:12. | :03:14. | |
a little cheer for the troubled banking sector, posting | :03:15. | :03:16. | |
It's been a bad time for big banks recently. | :03:17. | :03:19. | |
In the UK, the five largest have all seen their profits and share | :03:20. | :03:23. | |
Let's have a look at some of the reasons why, | :03:24. | :03:26. | |
the turmoil on global stock markets and slump in commodity prices | :03:27. | :03:29. | |
like oil and steel, have made it even harder for investment | :03:30. | :03:32. | |
The banks have been hit by the cost of mis-selling payment | :03:33. | :03:35. | |
protection insurance as well as fines for market rigging. | :03:36. | :03:40. | |
Remember the bank rate that was rigged by a lot of big banks. | :03:41. | :03:45. | |
Central Banks have been trying to boost borrowing | :03:46. | :03:50. | |
by using record low, and even negative, interest rates. | :03:51. | :03:52. | |
But this has, in many cases, simple led to a weakening | :03:53. | :03:55. | |
the Institute of Financial Services joins me now. | :03:56. | :04:07. | |
Several banks have reported today that being Europe's biggest, it was | :04:08. | :04:17. | |
not as grim as some were predicting. It was not, HSBC is mostly an Asian | :04:18. | :04:21. | |
bank, it is headquartered in London but it is Asian, it is the largest | :04:22. | :04:27. | |
bank in Europe but it is very much an Asian bank. In what way does that | :04:28. | :04:32. | |
change its numbers, because many are doing the fact that it is so exposed | :04:33. | :04:37. | |
to China in particular, it is not necessarily a good thing. HSBC has | :04:38. | :04:43. | |
made it very clear, they see a substantial amount of their future | :04:44. | :04:47. | |
being Asia, Asia is still a growing market. I think what we need to | :04:48. | :04:51. | |
think about is that many markets in Asia, we used to call them | :04:52. | :04:59. | |
developing markets, but now I call them markets that are roughly | :05:00. | :05:02. | |
developing economies, development is not that smooth, but the return | :05:03. | :05:07. | |
tends to be where the risk is. They have gone to where the potential | :05:08. | :05:12. | |
returns are. Talking about some of the issues that then highlighted | :05:13. | :05:16. | |
what all banks around the world have been facing this year, terrible | :05:17. | :05:20. | |
profits when it comes to investment banking because of market volatility | :05:21. | :05:24. | |
and the really low commodity prices, and adds to that very low interest | :05:25. | :05:28. | |
rates, meaning the other side of the business is not doing so well, talk | :05:29. | :05:31. | |
us through some of the headwinds, that the likes of HSBC and others | :05:32. | :05:38. | |
have been facing. Investment banking has been hit by a slowdown in the | :05:39. | :05:42. | |
volume of business, thinking about the number of trades going on, | :05:43. | :05:48. | |
HSBC's investment bank is not the largest, Goldman Sachs, some of the | :05:49. | :05:53. | |
US banks have much larger Trajan operations. -- trading operations. | :05:54. | :05:59. | |
HSBC has not been hit in the same way, its investment arm is client | :06:00. | :06:06. | |
focused, it is not focused as much, that is a positive side. We had | :06:07. | :06:10. | |
expectations of a much worse set of numbers from HSBC, they were not as | :06:11. | :06:19. | |
bad as had been imagined. Overall, investment banking, and thinking | :06:20. | :06:22. | |
about some of the other banks that have announced earnings this | :06:23. | :06:25. | |
morning, those that had businesses that were much more market focused, | :06:26. | :06:31. | |
investment banking in a niche, big market players have suffered more. | :06:32. | :06:35. | |
We have seen results from Europe, outside of southern Europe, Italy, | :06:36. | :06:42. | |
they have been favourable. Europe not as bad. HSBC, coming back, | :06:43. | :06:51. | |
China, HSBC is more focused on the private sector in China, the state | :06:52. | :06:56. | |
owned enterprises, where there is more difficulty, as they shift from | :06:57. | :07:01. | |
heavy industry to a service economy. We see different things from | :07:02. | :07:06. | |
different banks. UBS reported results, their investment banking | :07:07. | :07:10. | |
results, down dramatically, as they were supposedly reducing their | :07:11. | :07:16. | |
investment banking footprint, the size of that business, does not look | :07:17. | :07:19. | |
like they have reduced volatility in earnings. They are also suffering on | :07:20. | :07:27. | |
the private banking. So there is a lot to consider as we look towards | :07:28. | :07:30. | |
the rest of the year, thank you very much for coming in. Then two more | :07:31. | :07:35. | |
detail on HSBC, BNP Paribas, and UBS, online. -- there is much more | :07:36. | :07:40. | |
detail. Puerto Rico's debt | :07:41. | :07:44. | |
crisis has prompted it to default on a $422 million debt | :07:45. | :07:50. | |
payment that was due yesterday. The governor of the US territory had | :07:51. | :07:53. | |
already warned that the the island's financial position was | :07:54. | :07:56. | |
perilous and would not meet Creditors have agreed to hold talks | :07:57. | :07:58. | |
for 30 days and will not pursue legal action until those | :07:59. | :08:02. | |
talks are completed. Ferrari says it's on course | :08:03. | :08:03. | |
for a record year and sales for the first | :08:04. | :08:06. | |
three months of the year. The Italian sportscar maker | :08:07. | :08:09. | |
sold nearly 1,900 cars that's up 15% on the same | :08:10. | :08:11. | |
period last year. Profits rose 19% to $90m, | :08:12. | :08:15. | |
with sales in Europe, China, and the Middle East | :08:16. | :08:17. | |
rising by double-digits. German airline Lufthansa has | :08:18. | :08:19. | |
reported a small loss down from a profit of $490 million | :08:20. | :08:23. | |
over the same period last year. It made a first-quarter pre-tax loss | :08:24. | :08:30. | |
of $61 million but missed forecasts. The group has cut its capacity plans | :08:31. | :08:33. | |
amid fierce competition Last week, one of Lufthansa's | :08:34. | :08:36. | |
rivals, made a similar cut | :08:37. | :08:40. | |
to its growth plans. Iterating the breaking news, as | :08:41. | :08:56. | |
mentioned at the beginning of the programme, it is on the website, in | :08:57. | :09:02. | |
fact it is Ben's tweet on the business live page, bionic Ben, | :09:03. | :09:05. | |
getting a tweet before we walked onto the set, talk us through this | :09:06. | :09:10. | |
letter of intent. Clearly waiting for combination from both sides, | :09:11. | :09:14. | |
this story, liberty house, it was involved in some of the early | :09:15. | :09:17. | |
discussions about the future of the British assets of Tata, this is the | :09:18. | :09:24. | |
first concrete bid since the business was put up the sale, it | :09:25. | :09:27. | |
simply cannot compete with cheap imports, notably from China, and the | :09:28. | :09:32. | |
European industry has been suffering as well, news that this is a letter | :09:33. | :09:36. | |
that they have an intent to buy the British assets of Tata, could be | :09:37. | :09:40. | |
good news for the thousands of jobs that are at risk. Another story on | :09:41. | :09:47. | |
the business live page, BMW says that it is seeing record sales in | :09:48. | :09:53. | |
the first quarter, it has seen an appetite for luxury cars, certainly, | :09:54. | :09:58. | |
BMW, also high end, first-quarter record for car sales, sales volume, | :09:59. | :10:05. | |
up 6%, totalling 567,605 cars, they sold all of those in the first three | :10:06. | :10:07. | |
months of the year. the central bank there has cut | :10:08. | :10:10. | |
interest rates just hours before the Government is due | :10:11. | :10:14. | |
to deliver it's budget. It comes after new figures showed | :10:15. | :10:16. | |
inflation had turned negative from our Asia Business | :10:17. | :10:18. | |
Hub in Singapore. Central bank action getting | :10:19. | :10:35. | |
everyone's attention once again. It is indeed, I should say that the key | :10:36. | :10:38. | |
cash rate, which is the benchmark cash rate, cut to 1.75, that is a | :10:39. | :10:45. | |
fresh record low for Australia, really an attempt to counter | :10:46. | :10:51. | |
deflation, also an attempt to level the strength of this trailing | :10:52. | :10:55. | |
dollar, at a time when it is feeling the pinch from a slowdown in their | :10:56. | :11:00. | |
largest trading partner, China, prompted by a decision data last | :11:01. | :11:04. | |
week, which showed quarterly deflation in the consumer price | :11:05. | :11:09. | |
index and the weakest annual gain on record for core inflation. The | :11:10. | :11:12. | |
Australian dollar pretty much falling on the decision, that's what | :11:13. | :11:17. | |
we saw, that dollar has risen 15% since mid-January, making the nation | :11:18. | :11:22. | |
's key exports like iron ore more expensive, looking to bring down the | :11:23. | :11:26. | |
spreading dollar, there is also the hope that it would boost household | :11:27. | :11:29. | |
spending, but of course, next thing we are watching for is the budget, | :11:30. | :11:34. | |
likely focusing on jobs growth, keeping the budget in check, | :11:35. | :11:37. | |
expectations for small tax cuts, spending, infrastructure ahead, of | :11:38. | :11:45. | |
elections that the Prime Minister, Malcolm Turnbull, will likely call | :11:46. | :11:46. | |
on May 11. So that surprise move | :11:47. | :11:50. | |
by Australia's Central Bank to cut rates off the back of | :11:51. | :11:52. | |
weak inflation data. Prices turned negative | :11:53. | :11:54. | |
in the last quarter. That's largely been driven | :11:55. | :11:56. | |
by the slump in commodity prices, but the big question is how | :11:57. | :11:59. | |
temporary these factors In Europe, here's what the numbers | :12:00. | :12:01. | |
are doing in the first hour. We're seeing some improvement | :12:02. | :12:20. | |
from the lows of February, but nothing to get excited | :12:21. | :12:22. | |
about at all. In the UK later we get the latest | :12:23. | :12:24. | |
manufacturing PMI data from which is expected to show | :12:25. | :12:27. | |
a small improvement, and will be watched as always, | :12:28. | :12:29. | |
for signs that it's not only a story of recovery led by | :12:30. | :12:32. | |
the service sector. We'll talk more about that | :12:33. | :12:35. | |
in a moment, but let's head Stateside for a look ahead | :12:36. | :12:38. | |
to the day on Wall Street. Plenty to watch out for this | :12:39. | :12:47. | |
Tuesday, buckle up, first we turn to the US car industry, most of the | :12:48. | :12:52. | |
world's big eight auto-makers will report how many new cars they have | :12:53. | :12:55. | |
sold in April in America, research firm Kelly blue book estimates 17.5 | :12:56. | :13:01. | |
million new rights were purchased. One company to pay attention to, | :13:02. | :13:08. | |
Volkswagen, tainted by an omission scandal, and omissions cheating | :13:09. | :13:11. | |
scandal, will they be able to stop their steady decline in sales. -- | :13:12. | :13:15. | |
Kelly Bluebook. Tuesday's report should shed some light. Earnings | :13:16. | :13:20. | |
season continues, both Pfizer and Haliburton, two of the companies | :13:21. | :13:24. | |
reporting their first-quarter results. You heard it from Michelle, | :13:25. | :13:36. | |
buckle up! We are joined by global market strategist at JP Morgan asset | :13:37. | :13:40. | |
management. Tell us what is on your mind, another busy day. Illustrating | :13:41. | :13:44. | |
how much markets are looking at monetary policy, central bank rate | :13:45. | :13:49. | |
cuts, and assets in the open market, even raising rates that you have in | :13:50. | :13:54. | |
the US, the Australian action was a bit of a surprise, 12 out of 27 | :13:55. | :14:01. | |
economists predicted this. At a time when banks are simply trying to keep | :14:02. | :14:04. | |
up with expectations, they exceeded expectations and made a big cut. | :14:05. | :14:09. | |
Touching on that notion of what banks tell us about the world | :14:10. | :14:12. | |
economy, we get caught up in individual figures, these are only | :14:13. | :14:15. | |
quarterly figures, we should not read too much into them, but it | :14:16. | :14:18. | |
should give us an indication of which way the economy is heading, | :14:19. | :14:22. | |
they are players in many big markets around the world, they are a big | :14:23. | :14:28. | |
indicator. Eusebius trailing bank or any banks forecast really impacting | :14:29. | :14:32. | |
how we think about global growth for the next one, three, five years. | :14:33. | :14:37. | |
When you have a bank like the bank of Australia which sees inflation | :14:38. | :14:39. | |
figures really low and worried, trying to stimulate that quickly, it | :14:40. | :14:44. | |
does signal they are ready to act but also that maybe we should be | :14:45. | :14:47. | |
looking closely at whether Australian data is performing the | :14:48. | :14:51. | |
way that we want it to be. Where I mention the US, I feel like we | :14:52. | :14:54. | |
haven't spoken about them for quite some time, which is unusual, what | :14:55. | :14:58. | |
are people saying in the market is about when rates will go up again? | :14:59. | :15:02. | |
It is always will they won't they, the April meeting that we had for | :15:03. | :15:05. | |
the Federal reserve was not a surprise that they did not act, | :15:06. | :15:09. | |
interesting shift in language, they are now looking less about concerns | :15:10. | :15:13. | |
about a high US dollar, and growth issues in China, now looking more at | :15:14. | :15:18. | |
the US, is all the growth that we have been expecting airtight, is it | :15:19. | :15:23. | |
as strong as it can be to justify a hike in June. Still on the table, a | :15:24. | :15:27. | |
lot of the data has got to come up. A lot happening in June. We will see | :15:28. | :15:33. | |
you in five minutes. All of that will keep us busy. Still to come: | :15:34. | :15:41. | |
music to his ears? The boom in streaming services is changing the | :15:42. | :15:44. | |
way we consume music - but with more and more competitors, can anyone | :15:45. | :15:46. | |
make money? The boss of SoundCloud will be with us shortly. | :15:47. | :15:55. | |
Parents will lend their children a staggering ?5 billion this year to | :15:56. | :16:01. | |
help them on to the property ladder. It means that the so-called bank of | :16:02. | :16:06. | |
mum and dad will help finance 25% of all UK mortgage transactions this | :16:07. | :16:13. | |
year. That's about ?17500 per home and it puts parents in the top ten | :16:14. | :16:16. | |
league of mortgage lenders. Joining us now from our | :16:17. | :16:19. | |
Salford Studio is Louisa Fletcher The figures are staggering. ?5 | :16:20. | :16:32. | |
billion and 17500, on average, where is the money coming from? Well, I | :16:33. | :16:36. | |
didn't get pocket money like that when I was a kid, I have to say! | :16:37. | :16:41. | |
Frankly, I think parents are possibly benefiting from the fact | :16:42. | :16:46. | |
that house prices have increased so much over the last decade and at | :16:47. | :16:49. | |
that point, they're able with the equity that they have in their | :16:50. | :16:53. | |
property to help finance their children's purchases. So that's | :16:54. | :16:57. | |
probably where the money is coming from. However it is worth mentioning | :16:58. | :17:03. | |
if you are accepting a deposit t has to be gifted. So you can't lend | :17:04. | :17:07. | |
someone a deposit, you have to gift it to them and that does have to be | :17:08. | :17:12. | |
ratified in writing because the lender needs to understand the | :17:13. | :17:14. | |
person giving you that money isn't going to want it back. | :17:15. | :17:22. | |
Is it parents and grandparents in a sense gifting the inheritance to | :17:23. | :17:25. | |
their children a lot earlier than perhaps they would have perhaps | :17:26. | :17:29. | |
thought about and therefore, in some ways, some might call it very, very | :17:30. | :17:34. | |
tax efficient when you look at inheritance tax and that kind of | :17:35. | :17:37. | |
thing? It will depend on the amount of money you're gifting and the | :17:38. | :17:41. | |
threshold at which you would say pay tax. Yes, there is probably a trend | :17:42. | :17:45. | |
that we're seeing where people are saying, "Look, we have got the | :17:46. | :17:49. | |
ability. We've got the where with all because our own property has | :17:50. | :17:52. | |
grown so much in value. Let's give you the money now when it is really | :17:53. | :17:57. | |
going to help you rather than in 20 or so years time. Let's get you on | :17:58. | :18:03. | |
the ladder now and the cash is there in some ca obviously." Better you | :18:04. | :18:09. | |
make use of it now. Louisa, thank you. | :18:10. | :18:14. | |
Parents who lend money to their kids to buy a house, they feel they can | :18:15. | :18:17. | |
stay at that house whenever they want. I have got friends like that | :18:18. | :18:26. | |
in London! It is called BOMAD! The bank of mum and dad! | :18:27. | :18:28. | |
You heard it here! One of the world's biggest banks, | :18:29. | :18:38. | |
HSBC, has reported a 14% in profits for the first | :18:39. | :18:47. | |
three months of the year. The bank blamed "extreme levels | :18:48. | :18:49. | |
of volatility" in financial We have heard those excuses before. | :18:50. | :18:55. | |
Many of the European banks have reported today. Take a look online. | :18:56. | :18:59. | |
You can see the details on our website. | :19:00. | :19:00. | |
When was the last time you bought a CD? | :19:01. | :19:02. | |
For many, the way they consume music has changed entirely. | :19:03. | :19:09. | |
We no longer own the music, but instead rent it, | :19:10. | :19:12. | |
paying a monthly subscription to access thousands of tracks | :19:13. | :19:14. | |
and albums to play whenever and wherever we want. | :19:15. | :19:16. | |
And one of the big players is SoundCloud. | :19:17. | :19:19. | |
Today, they're launching a paid-for service in the UK, | :19:20. | :19:22. | |
but can the market sustain a new player in this | :19:23. | :19:24. | |
Last year there was a 45% increase in streaming revenue, | :19:25. | :19:37. | |
with physical music sales being overtaken for the first time. | :19:38. | :19:40. | |
SoundCloud often gets much less attention than its rival Spotify, | :19:41. | :19:42. | |
but it has more than double the number of users, | :19:43. | :19:45. | |
And unlike Spotify, SoundCloud has focused on growth over paid | :19:46. | :19:53. | |
In 2014, the company posted a loss of $56.4 million and so arguably | :19:54. | :20:04. | |
needs to start charging to stay in the game. | :20:05. | :20:07. | |
Alex Ljung is Co-founder and Chief Executive, SoundCloud. | :20:08. | :20:19. | |
Nice to meet you, Alex. It is a very crowded market, but you argue that | :20:20. | :20:26. | |
you are doing so well already forget the numbers for now. In terms of | :20:27. | :20:31. | |
listeners, those users because of what you aurvings the uniqueness of | :20:32. | :20:36. | |
what you offer? Yes. Well, I think if you take a step back as well. | :20:37. | :20:39. | |
Music is one of the big human passions. Every single person on the | :20:40. | :20:43. | |
planet loves music. Is passionate about it and it is a big part of | :20:44. | :20:47. | |
their life. The market potential in terms of usage is enormous. So there | :20:48. | :20:52. | |
is a lot of space for several different companies in that. How do | :20:53. | :20:55. | |
you convert people from a free service to a paid for service? If | :20:56. | :21:00. | |
you're offering something for free? What convinces them to start | :21:01. | :21:03. | |
shelling out money for it? SoundCloud is unique in that we have | :21:04. | :21:06. | |
been offering a free service for several years now. And now have over | :21:07. | :21:12. | |
175 million unique listeners. Well over, you know, 100 million tracks | :21:13. | :21:17. | |
available for free and it doesn't exist anywhere else. It is the | :21:18. | :21:22. | |
choice for the artists, artists both big and small use SoundCloud all the | :21:23. | :21:26. | |
time. We are introducing a paid service that let's you take all of | :21:27. | :21:30. | |
that and make it off line available, but the unique part is we have taken | :21:31. | :21:36. | |
all the back catalogue and the big indes and put that in a service, you | :21:37. | :21:42. | |
have a service that has over 125 million tracks, everything | :21:43. | :21:47. | |
imaginable, albums, remixes, mash-ups, everything you can think | :21:48. | :21:53. | |
off and off line and that's what you get for the fee. About the artists, | :21:54. | :21:58. | |
we know the likes of Apple Music they faced a backlash when it came | :21:59. | :22:02. | |
to how much they paid artists. Certain artists decided they didn't | :22:03. | :22:05. | |
want to be on that platform because they weren't being paid. How do you | :22:06. | :22:10. | |
square that circle? You need to keep your costs down and particularly new | :22:11. | :22:13. | |
artists that work with you need to be paid? Well, SoundCloud is very | :22:14. | :22:18. | |
special. If you look at its history like, my co-founder and I we were | :22:19. | :22:21. | |
both musicians and we started thinking about what can the internet | :22:22. | :22:26. | |
give to musicians? So we have become very quickly the biggest community | :22:27. | :22:30. | |
of creators and artists across the world and this was before we had | :22:31. | :22:33. | |
revenue opportunities in there. So, you know, you think about | :22:34. | :22:38. | |
traditional radio play, 3,000, 4,000 artists, at SoundCloud we play | :22:39. | :22:42. | |
12,000 artists every month. It is an explosion for what artists can do | :22:43. | :22:46. | |
online and there is also revenue opportunities on top of that. So it | :22:47. | :22:50. | |
is a combination value of both revenue and being able to build a | :22:51. | :22:55. | |
large audience. It is a very mixed environment, isn't it? Different... | :22:56. | :22:59. | |
Just like life. To different organisations work in different ways | :23:00. | :23:03. | |
and for artists, especially new artists, unknown artists, would you | :23:04. | :23:07. | |
argue they are losing out in this world of streaming in terms of the | :23:08. | :23:13. | |
revenue potential for them? Look, there are challenges. Real | :23:14. | :23:17. | |
challenges in terms of, you know, how big I believe the industry | :23:18. | :23:21. | |
around music should be versus where it is at today, but I'm a optimist | :23:22. | :23:26. | |
and we are at a point in time where the tools for cre August's of music | :23:27. | :23:30. | |
are more accessible to, you know, more people than ever before. There | :23:31. | :23:34. | |
is more creativity than ever before. The world is more global than ever | :23:35. | :23:38. | |
before, which means there is more creative input from across the | :23:39. | :23:42. | |
entire world. So I believe we're in a golden age of creativity. We're in | :23:43. | :23:48. | |
a golden age of how people consume music and we're in a really good | :23:49. | :23:53. | |
point in terms of how we're starting to ramp up the regeneration around | :23:54. | :23:58. | |
that which will get a lot bigger over the next few years. You moved | :23:59. | :24:06. | |
from Sweden to Berlin. Talk me through the environment. Perhaps | :24:07. | :24:10. | |
what you could do in Berlin and you couldn't do in Sweden and how Europe | :24:11. | :24:14. | |
is holding its own against the Silicon Valley? Internet connections | :24:15. | :24:18. | |
were better in Sweden, great connectivity, but the thing that we | :24:19. | :24:21. | |
liked about Berlin, it is a city with a little bit of a punk | :24:22. | :24:25. | |
attitude. It has got an edge to it and it is very close to, you know, | :24:26. | :24:31. | |
creativity and the cutting edge of creativity and good technology. That | :24:32. | :24:36. | |
was good for us as we said at the inter-- as we sit at the | :24:37. | :24:39. | |
intersection between arts and technology. We had an office in | :24:40. | :24:44. | |
Silicon Valley. Silicon Valley is great for technology and maybe less | :24:45. | :24:47. | |
interesting for the parts. I know that you're friend and the | :24:48. | :24:50. | |
co-founder that you work with Eric, he had an album which he does admit | :24:51. | :24:55. | |
was not the greatest by any means, are you tempted? No, his albums are | :24:56. | :24:59. | |
great. He has done two of them. OK. I read a quote of his saying he is | :25:00. | :25:03. | |
not impressed with his own stuff! Anyway. Is there a danger when it | :25:04. | :25:08. | |
comes to the musicians, you were founded on the principles of sharing | :25:09. | :25:11. | |
music so it was new bands that wanted to get their music out there | :25:12. | :25:14. | |
and this was a platform to do that and this is a question applicable to | :25:15. | :25:19. | |
many new start-ups that you get so far away from your founding ethos | :25:20. | :25:22. | |
now it becomes about money and profit and revenue and shareholders, | :25:23. | :25:26. | |
all that thing, where it has got so far away from the reason that you | :25:27. | :25:31. | |
created that it runs away from you. How do you retain that ethos? We | :25:32. | :25:35. | |
start it had from a personal point, a passion, believing that the | :25:36. | :25:39. | |
internet could do more for musicians and we have more musicians on | :25:40. | :25:42. | |
SoundCloud than ever before and it is growing rapidly. So I think, you | :25:43. | :25:47. | |
know, we are connected to what it started with and you know we have | :25:48. | :25:52. | |
some of the biggest artists and the smallest artists on the platform | :25:53. | :25:55. | |
today. Alex Ljung Thank you for coming in. | :25:56. | :26:01. | |
Nice to have you on Business | :26:02. | :26:02. |