25/05/2016 BBC Business Live


25/05/2016

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This is Business Live from BBC News with Rachel Horne and Sally Bundock.

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Talks in Brussels. Another cash injection to avoid default in July.

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Live from London, that's our top story on Wednesday, 25th May.

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They are calling it a major breakthrough. Eurozone Finance

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Ministers agree a deal that will unlock funds in bail out funds and

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phase in debt relief. And rights, camera, action -

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the European Commission takes on the world's biggest players

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in digital media but what will the changes deliver

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for businesses and consumers? We are 30 minutes

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into the trading day. The European markets were strong

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yesterday and the theme And we'll be getting

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the inside track on the business We're going to be talking

:01:01.:01:11.

to the Chef Exec of an airline that carry's only business

:01:12.:01:21.

class passengers. Jeff Bezos says McDonald's was his

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first job while Michael Bloomberg This morning we want to know

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what your first ever job?. A very warm welcome this morning.

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Eurozone Finance Ministers agreed to unlock bail out funds to Greece.

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After marathon talks that ended in the early hours of this morning in

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Brussels, it was also agreed to phase in debt relief in two years

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time, a key demand of the Greek Government and the International

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Monetary Fund. The 19 ministers said the deal was made possible by

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Greece's continued economic reforms. The European Commissioner for

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economic and financial affairs welcomed the deal.

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We have a good agreement in place which is as we expected and hoped. A

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global agreement which opens the way for a significant disbursement of

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much needed funding for Greece and for important measures on debt

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relief. Above all, this opens the way for a return of confidence that

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is so essential for lasting economic recovery in Greece which is our

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common purpose. So yes, it is very important moment in that long and

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sometimes difficult story. It has been a long and difficult

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story, that's for sure. Our Business Correspondent Andrew

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Walker joins me now. They are calling it a breakthrough,

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or is it kicking the can down the road again? It is a breakthrough. It

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will enable Greece to make payments that, debt repayments that are due

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to central banks and other payments due to the International Monetary

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Fund and make those payments on time and avoid what would potentially be

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an extremely messy and disruptive default. It will also help Greece

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with clearing some of the arrears that have been built up to business

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suppliers for example, to the public sector and to tax payers who are due

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refunds. So it is an important stage and I think the other point about

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the debt relief, we don't have detail about exactly what is going

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to be on offer, but certainly that was something that the International

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Monetary Fund regarded as being essential to enable Greece to have a

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sustainable debt burden over the coming decades and we really are

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talking about decades because already it is going to be, it is

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well into the 2050 decade before Greece would have fully repaid the

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loans that it has already taken on. Just briefly, Andrew, this follows

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the Greek Parliament approving new budget cuts and tax increases over

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the weekend which has not gone down well in Greece, has it? No, that's

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right. Those measures were essential to get the agreement that the

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eurozone has given and even then I have to say, there is going to be

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technical examination by the financial institutions, by the IMF

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and the European Commission to ensure that they do genuinely comply

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with what Greece was required to do, but I think those protests in Athens

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are an indication that we're going to have more political turmoil as

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this programme continues. Important though, this development is. Andrew

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Walker, thank you. The likes of Amazon Prime

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and Netflix and could be just hours away from being forced to make more

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of their content inside The move is part of a raft

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of proposals that will be unveiled later today as part of a plan

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to shake up the digital The European Commission is expected

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to rule that at least 20% of the streaming giant's content

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consists of European Netflix has already denounced

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the plans saying they will lead to streaming sites buying

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lots of poor quality content just The plan could also lead to more

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rigorous age restrictions for certain content on sites

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like YouTube which traditional broadcasters wouldn't be able

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to show during the day. As well as new media rules,

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the Commission is also expected to announce a raft of other measures

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aimed at creating These include an end to the practice

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of geo-blocking which prevents customers in one country from buying

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goods from online stores elsewhere Joining us from Brussels

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is James Waterworth, Vice President, CCIA Europe,

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a trade group representing those James, thank you for being on the

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programme. Is this Europe meddling again or is Europe making the

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playing field fairer? No, I mean much of what the European Union has

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announced with this digital single market idea is very good. It makes

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it easier for consumers to buy things from different countries in

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Europe and makes it easier for businesses to trade across Europe.

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However, the choices it makes in how it does this will be important. It

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could end up making it actually harder. Netflix feels it has been

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forced to make programmes in Europe, movies in Europe, and actually it

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will water down what its unique selling point is. Well, companies

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like Netflix of course already making or buying European

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programming. So if you think about major blockbusters, major megabucks

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investments they have made in France. In France they have made a

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TV series called Marsai. They've bought many streaming sites have

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bought films like, TV programmes like Top Gear, for example, so a lot

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of quality European content is being made. What we think about quotas, it

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won't necessarily improve the quality of what people want. So

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potentially you will get bad programming and put on a service

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which no one will watch. I bet others will counter that for sure.

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Let's talk about the issue of rights. It is a minefield, how will

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it be affected by the recommendations? Not necessarily

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directly. It will more affect questions around safeguarding

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children, what kind advertisements you can show. Rights, one of the

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major pieces of legislation that's being looked at here now is whether

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if you go on holiday. If you're going to go on holiday to Spain this

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summer, whether you can take your, watch your Netflix account or BBCi

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player when you're on holiday. That has many people who make TV

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programming or make films worried about whether they will be able to

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get the same amount of money for their rights, but actually, it seems

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like a sensible measure which will ensure that consumers can get what

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they've already paid for. James Waterworth thank you for your time

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and we shall update you when we hear from bles as to what their

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recommendations are. Monsanto has rejected a $62 billion

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offer from Bayer that would have created the world's

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biggest agricultural supplier. The US company said the offer

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was "financially inadequate", but left the door open

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for a potentially higher bid. Hugh Grant, Monsanto

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Chief executive, said the proposal significantly

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undervalued the company. He also raised concerns

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about whether a deal would be Cuba's communist government has

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announced it is legalising small and medium-sized private

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businesses in the latest stage of economic reforms which began

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when President Raul Castro took over The move could significantly expand

:09:15.:09:20.

private enterprise in one of the world's last

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centrally-planned economies. Huawei is suing tech rival Samsung

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over claims that its patents The Chinese firm said

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it was pursuing its South Korean rival in two courts -

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one in California, Huawei says that several

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of its cellular communications and software inventions had been

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used in Samsung's phones Tata Steel will announce

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its financial results for the first three months of this

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year later today. They may also reveal

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which bidders will continue in the race to buy the company's

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British assets. Well, in the building behind me,

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that's where the meeting is taking place and yes, of course, they will

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be reviewing the financial situation of the company. They will be coming

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out with their financial results for January to March this year and the

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whole financial year from April last year to March this year, but they

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will be assessing the bids that they've received. Earlier this

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month, the company had confirmed that they had seven companies

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expressing an interest in buying their UK operations. Monday was the

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deadline for the final bids to be submitted and post that, we have not

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yet received word from Tata Steel on how many companies have actually

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made that bid, but post the meeting, we are expecting Tata to come out

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with some statement and that's been perhaps, we will hear who made it to

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the shortlist. Thank you.

:10:55.:11:02.

The Hang Seng was up 2.56%. Its biggest leap for six weeks. The Dow

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up over a percent. Figures out showing a surge in US home sales

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giving investors confidence that the country can take the rumoured higher

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interests which could be on the way. Green across the boards. Confidence

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from the US filtering through and perhaps news of the deal in Greece

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soothing the uncertainty that the markets don't like. Let's go over to

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the States. On Tuesday we told you about Hewlett

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Packard Enterprises reporting earnings. That deals with software

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and servers. On Wednesday HP will be reporting. This houses the PC and

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printing business. HP may not do as well as investors hoped, but it will

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want to hear from HP executives on the company's efforts to cut costs.

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Luxury jeweller Tiffany will be reporting earnings and if you have

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been following some of the retail trends in America, you will know

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that many high end brands have been struggling lately. The impact of the

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strong dollar is starting to subside, but the issue for luxury

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companies has been with customers preferring to spend their money on

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their homes, insurance and travel. So what investors will be looking to

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hear is what Tiffany's expects in terms of sales for the rest of the

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year. Tiffany, diamonds are forever, so

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they say! Joining us is Mike Amey,

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managing director and There is so much going on. I feel

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like I haven't stopped since I arrived at whatever time it was this

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morning! Interesting that markets aren't reacting much to Greece. They

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are focussed on the US home sales report, aren't they? That's right.

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We are in one of the situations where everything looks like it is

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going well. The soft patch looks like it has worked its way through.

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Soft patch? That wasn't a soft patch. It was a crazy moment. Now we

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appear to be back into a happier world where, you know, where

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potentially the US can start to raise interest rates again. S and P

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is back at the highs. Yeah, the markets have a better tone. One or

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two things we need to keep an eye on. The Chinese currency is starting

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to go down again. Yes, just talk us through that. The Chinese obviously

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have a tight relationship with the US dollar with their exchange rate

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and they are tied to the US dollar. When the dollar goes up, China's

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currency goes up and they have had a tough time. They valued around the

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turn of the year. That's one of the reasons we had the volatility in the

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first place. A bit of nervousness, they might be doing that, but so far

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things are holding well: This morning you were discussing the

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bunny market. Give us more explanation. Why can we have only

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two types of market? Why not have a new version. Bull markets are ones

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that go up over time. Bear markets going down over time. A bunny market

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is where you don't go anywhere, you just kind of go, hop, hop, hop...

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Hopping in and out. Exactly. Don't get too caught up in the bit that

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goes up or the bit that goes down. There is a degree of that going on

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at the moment. Already, we won't talk about the dead cat bounce.

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We'll confuse everybody! Still to come: Business class gets

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the easy jet treatment. We speak to the man who says

:14:28.:14:30.

he won't offer you the best business class experience but he will offer

:14:31.:14:33.

you the cheapest. You're with Business

:14:34.:14:35.

Live from BBC News. Marks Spencer has reported a 19.5%

:14:36.:14:40.

fall in pre-tax annual profits Its new chief executive Steve Rowe

:14:41.:14:43.

has pledged to slash prices and put more staff in stores to turn

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around its beleaguered clothing arm, Let's speak to Rob Young,

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who's just been talking to the boss. Co, Good morning. What did he say to

:14:52.:15:07.

you? The big problem with Marks Spencer is the cloefting and home

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ware divisions. -- clothing. Sales are down 3%. That old chestnut,

:15:15.:15:21.

they blamed. But the City is they blamed. But the City is

:15:22.:15:25.

focussing on their turn around plan. They say that that together with

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difficult trading conditions at the moment will hit profits in the

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short-term. We can see from this chart what investors are making of

:15:34.:15:37.

that. Shares have been sliding for six months and this shows that

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shares in M are down about 7%, suggesting investors don't like what

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they have been hearing from the new boss today. What else do you think

:15:47.:15:51.

we will hear from the new boss. We have had a whole line of M bosses

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pledging to change. What will he do differently. Steve Rose said they

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have cut the price of 300 different products, that is three and a half

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million garments. And they will focus on what they call a stylish

:16:12.:16:18.

contemporary feel and said M has not been listening to customers and

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had tended to tell customers what they want instead of listening to

:16:26.:16:29.

what they need. So the emphasis will be on cherishing and celebrating the

:16:30.:16:35.

customer that he described adds Mr and Mrs M Are you Mrs M I am

:16:36.:16:41.

not. I am a bit. Toy yo that are teaming with Uber

:16:42.:17:04.

and Vaulks wagon getting a link up with Another taxi company. A lot

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going on as car makers try and move into other realms in technology.

:17:12.:17:16.

Our top story - Greece has agreed a deal to unlock a further

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10.3 billion euros in loans from its international creditors.

:17:22.:17:24.

Eurozone finance ministers also agreed to potentially offer

:17:25.:17:26.

Greece debt relief - a concession that was necessary

:17:27.:17:28.

For many the idea of flying in business class is a bit of a treat.

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However for those whose jobs entail regularly taking to the skies,

:17:45.:17:47.

it can also become an office on the move.

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As well as offering the chance to sleep and relax, business class

:17:50.:17:52.

also allows customers space to work and e-mail and even make calls

:17:53.:17:55.

And airlines cash in on offering all these added extras -

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it's estimated that profit margins for business class passengers are up

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to ten times higher than they are for travellers in economy.

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And all of that helps the balance sheet, according to IATA,

:18:11.:18:13.

22% of airline revenue come from premium travellers.

:18:14.:18:16.

The increasing demand for business travel is now leading to some

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One of the company's leading that movement is La Compagnie,

:18:22.:18:26.

they're an all-business-class airline that operates

:18:27.:18:27.

The CEO and co founder of the airline, Frantz

:18:28.:18:31.

I have to say for Rachael and I, we travel with three little boys on

:18:32.:18:46.

planes. We don't share them. She has three, I have three. The thought of

:18:47.:18:50.

a bed privacy sounds like another world us to. Yes, well obviousy when

:18:51.:18:57.

we created the company what we did was only addressing the passenger's

:18:58.:19:07.

need. Before travelling on La Compagnie, travelli long haul you

:19:08.:19:18.

had only two experiences. We see them beyond the curtain. What we are

:19:19.:19:23.

offering is a business class long haul, much, much cheaper than the

:19:24.:19:32.

others. Everyone is Average is two two three times cheaper. At the

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moment you travel between Paris and New York and Luton Airport, which is

:19:36.:19:41.

north of London and New York. And you're saying that the price of a

:19:42.:19:47.

ticket is two thirds less than say a legacy carrier. Two to three times

:19:48.:19:57.

cheaper. We start at ?1,000 round trip, all in, you can carry two big

:19:58.:20:03.

bags, you have access to the lounge both sides of the Pond. You have a

:20:04.:20:10.

real bed, you have meals prepared by your chef. Other companies have

:20:11.:20:14.

tried this like Skyline and they have gone bust aw and you did it

:20:15.:20:19.

with your first airline and sold that on. Why do you think this one

:20:20.:20:25.

will succeed? We see it as a success on the Paris to New York route and

:20:26.:20:29.

we started those operations in 2014 and that is a big success. London

:20:30.:20:35.

route it is coming up. It is ramping up. We are still ten points below

:20:36.:20:41.

Paris, but the success starts to be here and we are happy. You know for

:20:42.:20:46.

a small start up airline we have been happy and proud to be the only

:20:47.:20:52.

European one to operate the two longest, the two busiest routes in

:20:53.:20:57.

the word, London/New York and Paris/New York. We have good news,

:20:58.:21:02.

when we started up with the London route one year ago we were operating

:21:03.:21:07.

only five per week, we are going to go six per week by the end of June.

:21:08.:21:14.

Why do you think it is working, what are you doing differently. It worked

:21:15.:21:21.

well with and yon. You may ask British Airways why they paid 78

:21:22.:21:28.

million for it, that was less than two years ago was 50 million. I

:21:29.:21:33.

think in September 2008 the world has changed and everyone from one

:21:34.:21:37.

day to the other became cost conscious. We have 64% of passengers

:21:38.:21:46.

are corporations and they are more cost conscious and what is true of

:21:47.:21:52.

core prafgss is usually true for you and me. When we want to travel, we

:21:53.:21:57.

want to spend less. You said you need your planes to be two thirds

:21:58.:22:03.

full to break even. More passengers, you're making a profit. You're going

:22:04.:22:06.

to Europe and New York, what about the other side of the world, what

:22:07.:22:12.

about Asia. First we want to reinforce our position in the North

:22:13.:22:17.

at lap tick and getting -- Atlantic and getting more operations between

:22:18.:22:21.

Paris and New York and London and from other nations to New York. Then

:22:22.:22:26.

I guess we cannot stay away from the west coast of the US and Asia too

:22:27.:22:32.

long. We are ran out of time. Thank you for coming N maybe we will

:22:33.:22:36.

experience the luxury one day. When we haven't got to buy five flight

:22:37.:22:39.

tickets. Shall we move on. Now, we've tended to see robots

:22:40.:22:42.

as a bit of a threat, particularly to jobs as they become

:22:43.:22:45.

capable of more and more tasks. But at Europe's biggest

:22:46.:22:48.

robotics event all the talk The idea is that collaborative

:22:49.:22:50.

robots will work with humans Our technology correspondent Rory

:22:51.:22:55.

Cellan-Jones reports from Paris. In Paris this week you can meet all

:22:56.:23:12.

kinds of robots. These once dance. This one is more practical, cleaning

:23:13.:23:18.

your barbecue grill. For decades industrial robots have been doing

:23:19.:23:24.

tasks. Robots have been in factories for years, but they're locked away,

:23:25.:23:30.

seen as a threat to jobs. The new emphasis is on collaborative robots

:23:31.:23:34.

you can work alongside and see almost as a work mate, perhaps have

:23:35.:23:40.

a joke with. They're getting better at learning human tasks, but the

:23:41.:23:44.

people building them say we should see them as friends not foes.

:23:45.:23:51.

What other business stories has the media been

:23:52.:23:53.

Mike Amey, managing director and portfolio manager at Pimco

:23:54.:23:56.

We mentioned what was your first job? Pretty glamorous, I stacked

:23:57.:24:06.

chickens in a frozen chicken factory. Mine was a pie factory.

:24:07.:24:14.

Were you next to a conveyor belt. I was just earlier in the line. Do you

:24:15.:24:22.

eat chicken now? Yes. Now, I can't eat pies. It was a well known

:24:23.:24:28.

retailer. My first job was a summer camp leader. Great responsibility.

:24:29.:24:35.

Getting everybody toeing the line. I had to teach orienteering. Two of

:24:36.:24:42.

the kids went missing in the woods! This story is in the Daily

:24:43.:24:46.

Telegraph, what jobs did the world's top business people do before they

:24:47.:24:52.

were millionaires. Everyone can recognise Richard Branson. We know

:24:53.:25:03.

what he was up to. But Jeff Bessos, the founder of Amazon worked in

:25:04.:25:09.

McDonalds. A number just had regular jobs that we have all had. It gives

:25:10.:25:13.

you experience, if you're going to you experience, if you're going to

:25:14.:25:16.

run a big company, if you have plenty of experience that is what

:25:17.:25:22.

they're looking for. It is a good grounding to start off stacking

:25:23.:25:29.

chickens or... Mine was a figure skater. The CEO of net flicks, he

:25:30.:25:37.

was a vacuum cleaner seamsman. -- Salesman. If you can sell that...

:25:38.:25:47.

... You can do well. Thank you for coming. We will be back tomorrow.

:25:48.:25:52.

See you soon. Goodbye.

:25:53.:25:55.

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