Browse content similar to 17/06/2016. Check below for episodes and series from the same categories and more!
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Now for the latest financial news with Sally and World Business | :00:00. | :00:00. | |
Cutting out the middle man: Could the tech behind Bitcoin | :00:00. | :00:21. | |
revolutionise the global financial system? | :00:22. | :00:24. | |
We enter the fast moving world of Blockchain. | :00:25. | :00:28. | |
How US firms are creating cash from cannabis. | :00:29. | :00:38. | |
Also coming up: Japan's finance minister vows an urgent response | :00:39. | :00:45. | |
It is really hurting financial markets in Japan and also the | :00:46. | :00:59. | |
exporter is. What action will they take in the future. -- exporters. | :01:00. | :01:01. | |
We start in the fast moving world of financial technology. | :01:02. | :01:04. | |
This week the City of London has been hosting | :01:05. | :01:06. | |
the Global Digital Banking Conference, ahead of | :01:07. | :01:08. | |
London Technology Week which begins on Monday. | :01:09. | :01:14. | |
One word that's on everyone's lips - blockchain. | :01:15. | :01:22. | |
It's the system that was developed to underpin the digital currency | :01:23. | :01:25. | |
BitCoin, but its fans believe it could soon revolutionise global | :01:26. | :01:27. | |
finance and even the whole business world. | :01:28. | :01:30. | |
Under the traditional financial system, | :01:31. | :01:34. | |
So if I want to pay money to you, they process the transaction | :01:35. | :01:43. | |
and record it in a single centralised database or ledger. | :01:44. | :01:51. | |
Under the new system there is no middle man. | :01:52. | :01:53. | |
The ledger of transactions is effectively shared | :01:54. | :01:56. | |
across thousands or even millions of computers around the world | :01:57. | :01:59. | |
When a transaction is made between two parties, | :02:00. | :02:01. | |
it is broadcast to everyone else in the network. | :02:02. | :02:04. | |
Everyone's ledger is updated that shared record is what's known | :02:05. | :02:09. | |
Santander estimates the technology could save banks | :02:10. | :02:17. | |
a fortune on infrastructure costs up to $20 billion by 2022. | :02:18. | :02:24. | |
It also makes fraud much harder, as the BBC's Newsnight | :02:25. | :02:28. | |
Bitcoin is a self-regulating digital currency. It doesn't leave a central | :02:29. | :02:46. | |
bank in charge. It uses a blockchain, a ledger of who owns | :02:47. | :02:50. | |
what. Every time Bitcoins are transferred to another block of data | :02:51. | :02:55. | |
is added on to the chain. A complete copy of the blockchain is held by | :02:56. | :02:58. | |
the entire network of users, therefore if he tried to cheat the | :02:59. | :03:03. | |
currency and spend what you haven't got then everyone else would know. | :03:04. | :03:06. | |
The same technology many believe could be used to track anything of | :03:07. | :03:08. | |
value. There's a lot more detail on that on | :03:09. | :03:16. | |
the website and they will be in the week ahead because London Technology | :03:17. | :03:20. | |
Week is taking place next week and this is the main talking point. More | :03:21. | :03:27. | |
on this later when we get an expert view on blockchain and how | :03:28. | :03:30. | |
transparent it could be. Now let's have a look at Japan. The | :03:31. | :03:40. | |
finance minister says he is deeply concerned about the strength of the | :03:41. | :03:45. | |
country's currency. Rico Hizon is across this for us. Tell us a little | :03:46. | :03:50. | |
bit more about what the finance minister had to say. | :03:51. | :03:58. | |
He wants a weaker yen. The currency has been on a roll, appreciating the | :03:59. | :04:10. | |
almost to -- two year lows. Now the finance minister has fired off a | :04:11. | :04:15. | |
warning shot against a recent rise in the yen, saying he was deeply | :04:16. | :04:23. | |
concerned about the one-sided nature of it and would respond urgently if | :04:24. | :04:29. | |
necessary. So he could be hinting at market intervention to weaken the | :04:30. | :04:33. | |
yen. So this latest rhetoric comes as the yen hit multi year highs | :04:34. | :04:43. | |
against the dollar and the euro. So the finance minister stresses that | :04:44. | :04:48. | |
stability in currencies is extremely important and they were closely | :04:49. | :04:50. | |
co-ordinate with other countries on this issue. | :04:51. | :04:58. | |
Thank you so much, Acra on of course the Japanese currency took a | :04:59. | :05:03. | |
hammering yesterday. -- thank you so much, Rico. | :05:04. | :05:05. | |
From computer code to something a bit more organic now, | :05:06. | :05:07. | |
not to mention controversial, because we are also | :05:08. | :05:09. | |
Since it was legalised for medicinal use in 25 US states | :05:10. | :05:13. | |
and for recreational use in four, marijuana has entered the world | :05:14. | :05:16. | |
Last year sales surged to almost $5.5 billion. | :05:17. | :05:23. | |
But investors are still cautious about wagering on the weed. | :05:24. | :05:25. | |
Samira Hussain took a trip to the Cannabis World Congress | :05:26. | :05:29. | |
Pot has come a long way since the days of ruling a joint in your mum's | :05:30. | :05:44. | |
basement. In the US it has grown into a multibillion-dollar industry. | :05:45. | :05:48. | |
But the sector is hungry for recognition and cash. Betty has come | :05:49. | :05:57. | |
to be Expo with her son. After using cannabis to treat her pain she now | :05:58. | :06:00. | |
wants to be an investor. I used all of the teachers and it was so | :06:01. | :06:06. | |
effective for my pain. -- tinctures. I was able to do things and I was | :06:07. | :06:11. | |
debilitated before. I couldn't imagine doing anything. The | :06:12. | :06:14. | |
challenge for many of these companies is getting funding. Got | :06:15. | :06:17. | |
the laws have not caught up to this new business, many big institutional | :06:18. | :06:23. | |
investors, like pension funds and banks, are not legally allowed to | :06:24. | :06:28. | |
put their money anywhere near here. I think of the next five years you | :06:29. | :06:33. | |
will see this industry develop and honestly if you look at the | :06:34. | :06:36. | |
trajectory it has been on for the past five years keep it on that | :06:37. | :06:41. | |
trajectory and this will all be cleaned up. Rob Hunt agrees. He runs | :06:42. | :06:48. | |
one of the highest public equity funds in the business and has been | :06:49. | :06:53. | |
within it for 16 years and knows how much money there is to be made | :06:54. | :06:56. | |
investing in wheat. This past year the United States made 5.5 in | :06:57. | :07:03. | |
dollars. -- investing in weed. It is expected to be as much as 20 billion | :07:04. | :07:17. | |
by 2020. As others get a whiff of marijuana's potential, early | :07:18. | :07:21. | |
investors hope it will continue riding the high. | :07:22. | :07:28. | |
In other news: The gap between the rich and poor in the US | :07:29. | :07:31. | |
is getting wider despite its recovery from the global recession. | :07:32. | :07:34. | |
The Organisation for Economic Co-operation | :07:35. | :07:35. | |
and Development says US economic output has jumped 10% | :07:36. | :07:37. | |
past its pre-crisis peak in 2008, outstripping other major economies | :07:38. | :07:40. | |
But the gains are not being evenly shared, | :07:41. | :07:48. | |
with women and minorities faring less well, according | :07:49. | :07:50. | |
It suggests raising the minimum wage, boosting income tax credit | :07:51. | :07:53. | |
and helping people back to work through skills programmes. | :07:54. | :08:02. | |
Volkswagen plans to launch 30 all-electric models to reposition | :08:03. | :08:05. | |
itself as a leader in green transport. | :08:06. | :08:07. | |
Matthias Mueller, chief executive of Europe's biggest carmaker, | :08:08. | :08:09. | |
said huge investments would be needed as the firm moves | :08:10. | :08:16. | |
He hopes that by 2025 all-electric cars would account | :08:17. | :08:20. | |
for about 20-25% of the German carmaker's annual sales. | :08:21. | :08:26. | |
Latest figures show that sales growth of Volkswagen-branded cars | :08:27. | :08:28. | |
continues to fall behind European rivals. | :08:29. | :08:37. | |
The ultra-luxury carmaker Rolls Royce is also planning to go | :08:38. | :08:40. | |
The brand, which is owned by Germany's BMW, | :08:41. | :08:43. | |
has unveiled the zero-emission Rolls of the future. | :08:44. | :08:45. | |
The 103 EX is almost six metres long and will drive itself | :08:46. | :08:48. | |
using artificial intelligence, but won't be available until 2040. | :08:49. | :08:55. | |
The CEO says in the future not everyone will want to sit | :08:56. | :08:58. | |
ICAC interviewed him many times and not having an electric vehicles is | :08:59. | :09:19. | |
one of my questions. Looking at the markets, a very different picture to | :09:20. | :09:23. | |
this time yesterday. Offcourse Japan was sinking like a stone, over 3% | :09:24. | :09:29. | |
lower, because the Japanese yen was getting stronger. Once upon a time | :09:30. | :09:34. | |
market watchers and currency experts would say that when the yen was 105 | :09:35. | :09:39. | |
to the dollar that was the moment the Japanese authorities would | :09:40. | :09:43. | |
intervene to weaken its value, because of course began not so long | :09:44. | :09:48. | |
ago was 110 to the dollar. Things have changed significantly. Today | :09:49. | :09:56. | |
they are bouncing back. Let's quickly show you Wall Street. See | :09:57. | :09:59. | |
you soon. Sir Cliff Richard won't face charges | :10:00. | :10:09. | |
over allegations of sexual abuse | :10:10. | :10:13. |