27/10/2015 BBC Business Live


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


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


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


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


After years of complaints and legal wrangling, roaming fees


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


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


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


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


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


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


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


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


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


for calling their superiors by their official titles, is it


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


Let us know - just use the hashtag BBCBizLive.


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


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


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


The European Parliament will vote later on the reforms.


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


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


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


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


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


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


And just 2 euro cents for text messages.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


complicated concept and because they are interlinked that has slowed the


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


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


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


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


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


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


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


joining companies from Pizza Hut to Porsche


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


A large, sparsely populated nation, landlocked between China


and Russia, Mongolia still has no McDonalds or Starbucks.


Indonesia's president says his country will join transpacific


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


using words we cannot read out on the television!


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


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


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


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


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


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


competitive market. We have seen other airlines grounded. The


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


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


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


India right now. A pretty lacklustre session in Asia


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


Central Bank begins two days of deliberations today - even though


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


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


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


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


meets later this week. In Europe we're waiting


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


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


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


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


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


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


consumer spending. Investors will consumer spending. Investors will


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


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


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


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


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


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


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


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


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


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


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


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


expenditure. Capital expenditure keeps coming down, profits are


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


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


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


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


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


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


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


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


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


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


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


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


happening. We will have all the figures here.


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


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


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


during the depths of the global economic meltdown.


Oil giant BP has reported a sharp fall in profits blamed


Tanya Beckett is in the Business Newsroom and


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


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


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


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


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


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


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


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


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


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


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


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


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


manufacturing. There is a slightly more gloomy


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


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


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


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


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


can access credit. That might be affecting how companies are


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


The other big story which is big business implications is Chancellor


Osborne now having to rethink his Autumn Statement following the House


of Lords voting against his tax credit situation.


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


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


could save you a bundle when travelling in the continent.


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


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


history. From the boom days of global stock


markets to the height Ben Bernanke led America's Central


Bank - the Federal Reserve for 8 He saw out pretty


turbulent times. He was at the helm -


and played a crucial role in the He took the bank


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


the top job. He oversaw the takeover of


Bear Stearns by JP Morgan He introduced a programme


of quantitative easing - pumping hundreds of billions of dollars into


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


current near 0%. As chairman, Ben Bernanke also


increased the Fed's transparency holding quarterly press conferences


to explain policy decisions. Some criticised him


for not seeing the crisis coming, while others questioned


his maverick policies. He has written a book and sat


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


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


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


you guys are in charge, what ever The amount


of noise was extraordinary. How difficult was it to


make rational decisions? The news was playing it up,


as they appropriately should have. Inside the Fed there was


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


and analyse. I always tried to focus


on the immediate task. The testimony the next day,


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


on what had to be done. Nothing quite as severe


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


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


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


contingency planning, things of that sort, but nothing really


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


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


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


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


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


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


in a sense, That is


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


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


when the situation is sufficiently severe that you have to


respond. In order to punish some individuals


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


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


were being helped did not benefit Pulling together all of your


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


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


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


of the burden has been placed People complain about quantitative


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


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


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


could do less and some of those Have the politicians


learned those lessons? I think the politicians have been


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


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


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


how did that feel? CHUCKLES I was a big part


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


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


but it comes with the job. In


CHUCKLES That should do they should get their


on programme. Mike is back to look at some


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


Cambridge. Looking at the competition between them. We think


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


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


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


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


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


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


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


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


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


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


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


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


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


great. -- the two macro competing is great.


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


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


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


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


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


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


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


dominated economy where you call everybody boss is the kind of


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


inclusiveness and friendliness, but then they will fire you!


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


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


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


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


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


goodbye. The clock change tends to make you


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


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