:00:00. > :00:00.This is Business Live from the BBC
:00:00. > :00:09.with Ben Thompson and Aaron Heslehurst.
:00:10. > :00:13.Lawmakers consider new rules in California that could limit how
:00:14. > :00:22.Could it signal the end of $25 billion rental site AirBnB?
:00:23. > :00:41.Live from London, that's our top story on 3rd November 2015.
:00:42. > :00:43.AirBnB has spent $8 million to try and defeat
:00:44. > :00:46.the possible new rules and it's all being closely watched by cities
:00:47. > :00:52.They're also considering tightening regulations.
:00:53. > :00:55.Also in the programme, Standard Chartered is to cut 15,000
:00:56. > :00:58.jobs after reporting heavy third-quarter losses.
:00:59. > :01:10.We'll be live in Singapore for the latest.
:01:11. > :01:14.And markets are doing this. We will get construction figures for the UK
:01:15. > :01:15.a little later. Icelandic airline Wow Air promises
:01:16. > :01:19.flights from Europe to the US But how can
:01:20. > :01:28.the airline afford it and are We speak to the boss live here
:01:29. > :01:31.on the programme. And today, Amazon has announced
:01:32. > :01:34.plans to open its first So when did you last buy a book
:01:35. > :01:41.and was it online or in a store? The accommodation website AirBnB has
:01:42. > :02:02.shaken up the global travel industry - but
:02:03. > :02:05.in its home town of San Francisco Residents are due to vote later
:02:06. > :02:12.on Tuesday on a proposal to limit short-term rentals on apartments
:02:13. > :02:16.and homes to just 75 days per year with the websites themselves
:02:17. > :02:20.responsible for removing listings The
:02:21. > :02:26.company has spent 8 million dollars The ballot is being closely watched
:02:27. > :02:32.by cities like New York and Los Angeles, which are also considering
:02:33. > :02:35.tightening regulations. And this is what is making some
:02:36. > :02:43.locals in San Francisco angry. Over the past five years, average
:02:44. > :02:49.rent has risen by more than 75%,
:02:50. > :02:51.with sites like AirBnB being blamed Of course,
:02:52. > :02:56.AirBnB isn't the only example of a sharing economy platform
:02:57. > :02:58.facing regulatory challenges - don't forget Uber's facing
:02:59. > :03:01.regulatory issues in France, Brazil Raoul Lumb, Associate at
:03:02. > :03:22.Hill Hofstetter solicitors. I want to start with the chart Ben
:03:23. > :03:27.was showing us. Candy company be blamed for pushing rental prices?
:03:28. > :03:33.Those on the yes campaign will see that in five years they have gone up
:03:34. > :03:37.75%. Their campaign is that the company allows people to take houses
:03:38. > :03:40.out of the regular rental market of long-term latent tenants and push
:03:41. > :03:42.them into their holiday sector for short-term, quick turnover
:03:43. > :03:49.high-priced rentals. They say it pushes up. Airbnb has been around
:03:50. > :03:53.for seven years there has been a housing crisis for five years. They
:03:54. > :03:56.say that they cannot be doing it because they are pushing up the
:03:57. > :04:00.supply, and therefore they are bringing housing prices down.
:04:01. > :04:04.I'm just trying to work out, there is a valid point of some will say
:04:05. > :04:09.here, because many who rent their home made, or a second home, Philly
:04:10. > :04:13.under Airbnb, it is running a business. Typically, you have to pay
:04:14. > :04:16.something when you run a business, it is called taxation! That is what
:04:17. > :04:20.they have been getting away with? That is what the yes campaign says.
:04:21. > :04:25.If you're somebody who rent out your house for more than 75 days a year,
:04:26. > :04:28.a homeless, not just a room, they say that this is a business and
:04:29. > :04:32.something which should be regulated like a hostel or B and it should
:04:33. > :04:36.be taxed and have the same reporting requirements that businesses have.
:04:37. > :04:40.'S the issue at the moment is the fact that it is often more lucrative
:04:41. > :04:43.for people to rent out their place on a short-term lead, make a lot
:04:44. > :04:47.more money for it to visitors, rather than for the domestic
:04:48. > :04:50.population. That has got people in San Francisco so angry. They are
:04:51. > :04:53.being priced out of the market because all these tourists coming in
:04:54. > :04:57.for two weeks and they cannot get anywhere to rent.
:04:58. > :04:59.That is one of the things this proposition says. Airbnb of other
:05:00. > :05:03.mining communities in the bullets, forcing people who would be on
:05:04. > :05:09.long-term lets and turning it into a short-term holiday site. Very
:05:10. > :05:11.briefly, you mentioned this in your introduction, Goober is facing
:05:12. > :05:16.regulation in many cities around the world, Airbnb as well. Is this a
:05:17. > :05:20.classic case of the law, regulation, trying to catch up with technology
:05:21. > :05:24.because it is Goodwin Sands bones? Absolutely. This is the law and
:05:25. > :05:29.public disgraced catching up with technology and marketing of the
:05:30. > :05:40.technology. There has been a share in economy, such as Uber, would you
:05:41. > :05:44.mentioned, and regulators in society are keeping. Is the way this company
:05:45. > :05:50.does this desirable because it need extra oversight? This is the first
:05:51. > :05:51.step on a long journey. Great stuff, we appreciate your time. Thank you
:05:52. > :05:53.very much for coming in. US video games producer
:05:54. > :05:56.Activision Blizzard will buy the company behind Candy Crush -
:05:57. > :05:59.King Digital - for $5.9 billion. Activision which makes Call of Duty
:06:00. > :06:02.and Guitar Hero, says the purchase will create one
:06:03. > :06:05.of the largest global entertainment It will have over half a billion
:06:06. > :06:19.monthly users in 196 countries. Here is a story that keeps on
:06:20. > :06:22.giving. Volkswagen has denied claims by US
:06:23. > :06:24.regulators that some of its luxury brands were also fitted with devices
:06:25. > :06:31.to cheat pollution tests. The Environmental Protection Agency
:06:32. > :06:33.said at least 10,000 vehicles with six cylinder,
:06:34. > :06:35.three litre engines, such as Tech giant Google has announced
:06:36. > :06:39.a date for the launch It's called Project Wing and aims to
:06:40. > :07:04.deliver goods to consumers using the Not as far as you would think.
:07:05. > :07:09.Others are experimenting. Does it depend on where you live?
:07:10. > :07:20.What if you live in an apartment? You have to hang out of the window!
:07:21. > :07:25., thank you! BMW has a surprise profit. We are talking about the
:07:26. > :07:29.past three months, it has had a strong field in the European
:07:30. > :07:38.market. Offsetting that weakness in demand in China. What was the
:07:39. > :07:46.profit? Before tax, this is, 2.2 billion euros. Thank you very much,
:07:47. > :07:48.there you go. Revenue, 22.3 billion. Plenty of other stories there,
:07:49. > :07:50.including more on Standard Chartered. But that is our next
:07:51. > :08:01.story of love. -- story as well. Standard Chartered is to to cut
:08:02. > :08:22.15,000 jobs and raise over $5bn See what I did there?
:08:23. > :08:26.This is a really big clean-up and I should tell you how the share prices
:08:27. > :08:29.responded to that cling to start with, because these are then slung
:08:30. > :08:34.around 4% in trade in Hong Kong. It clawed back a bit. We have caused
:08:35. > :08:38.just recently in Hong Kong down more than 3% and are continuing to slide
:08:39. > :08:42.in London. But this is a clean-up that has been going for quite a
:08:43. > :08:45.while. Ever since the new CEO took over in the middle of the year. And
:08:46. > :08:51.this capital raising is not unexpected. Many people have been
:08:52. > :08:53.seeing it on the card since June. He started the restructure but today's
:08:54. > :08:59.members illustrate the scale of the problem. $139 million compared with
:09:00. > :09:03.a profit of 1.53 billion just one year earlier. We get this big
:09:04. > :09:08.capital raising and a lot more jobs are going to go.
:09:09. > :09:12.Good stuff, thank you very much. A quick look at the numbers. A bit
:09:13. > :09:16.of a mixed session in Asia, despite cautious optimism. We have seen weak
:09:17. > :09:21.Chinese domestic demand over the weekend but we have also had good
:09:22. > :09:24.figures from manufacturing in the UK, and the Eurozone yesterday. I
:09:25. > :09:28.want to trade the European numbers because markets yesterday ending
:09:29. > :09:33.pretty upbeat but in early trade, from the loss of there. Nonetheless
:09:34. > :09:38.we will be keeping a clear, -- a close eye on construction figures,
:09:39. > :09:41.due in the next hour, giving us an idea on how the market and economy
:09:42. > :09:44.is performing stock it makes up just a small part of the economy,
:09:45. > :09:49.however. What is happening on Wall Street?
:09:50. > :09:58.On Tuesday, we will see how close US auto-maker are to breaking the
:09:59. > :10:04.all-time Celtic are set in 2000. Analysts expect Americans love but
:10:05. > :10:11.11% more crisis October compared to last year and are on track by 17.4
:10:12. > :10:17.million vehicles in 2050. But for some companies it is another story.
:10:18. > :10:23.Tesla will release numbers on orders for its model X all electric SUV and
:10:24. > :10:28.give an update on the status of its five million dollar battery factory
:10:29. > :10:30.in Nevada. Those men and voters at the polls in San Francisco to decide
:10:31. > :10:34.whether or not to restrict the number of knife landlords can rent
:10:35. > :10:41.their homes to Airbnb and similar services. They have spent $8 million
:10:42. > :10:48.campaigning against the measure. We know that one! I am joking. We
:10:49. > :10:56.are joined by Jessica. Manufacturing, a big day yesterday
:10:57. > :11:00.but stop we will be watching the markets closely. Very closely. All
:11:01. > :11:04.that about this year has been emerging markets. Disappointing and
:11:05. > :11:09.everybody is turning to the developed markets to spearhead the
:11:10. > :11:15.growth. We have been talking to some US companies and the message is a
:11:16. > :11:18.bit mixed. There is definitely a benefit from lower oil price but
:11:19. > :11:22.actually, consumers are not spending as much as we thought. How much are
:11:23. > :11:30.we hanging onto these individual bits of data? We are wondering who
:11:31. > :11:35.will fire the starting first raising rates, the UK or US, and every time
:11:36. > :11:37.we get figures by construction, manufacturing, we get very excited
:11:38. > :11:42.about whether this is the one that means rates go up. How closely
:11:43. > :11:47.should we watch them? Rate rises, when they happen, whether first in
:11:48. > :11:52.the US or UK, will be a seminal moment. They have been low for so
:11:53. > :11:56.long. But I think the thing that we have learned a this recession is
:11:57. > :12:02.that it has been what I would call a bath tub. We have been bumping along
:12:03. > :12:08.the bottom for a long time. Rate rises have been pushed out try that.
:12:09. > :12:14.I am not sure that pattern is necessarily going to change that
:12:15. > :12:17.quickly. Jessica, you know how we make you guys work on our programme!
:12:18. > :12:22.You'll come back and taken through some of the papers. You will talk to
:12:23. > :12:25.you soon. Also coming up: Apostles and Atlantic Elaine will be
:12:26. > :12:28.sure to tell of how he intends to crack the market for cheap flights
:12:29. > :12:35.between the US and Europe. Many of course have tried and failed. Will
:12:36. > :12:40.this one be a success? You're with Business Live from BBC
:12:41. > :12:45.news. Was neither is an important battle going on in the cut-throat
:12:46. > :12:47.world of children's toys relating to intellectual property rights and the
:12:48. > :12:48.outcome will be watched coarsely around
:12:49. > :13:00.have you ever heard of Trunkie? It is a cross between a toy and
:13:01. > :13:04.luggage. I have seen them throughout
:13:05. > :13:09.airports. But the product, designed in the UK, has become a victim of
:13:10. > :13:12.its own success, spawning copycat manufacturers with rival designs.
:13:13. > :13:18.The company that owns the Trunkie may spend more money fighting
:13:19. > :13:21.patents battle than on research and development.
:13:22. > :13:27.Astonishing. Today, here before the Court hoping to shut down the
:13:28. > :13:34.biggest rivals, PMS of Hong Kong. We have run through...
:13:35. > :13:38.You have not left me much to the! If you are a parent of young
:13:39. > :13:44.children, as I am, you will be familiar with these products. Both
:13:45. > :13:50.Trunkie, on the left, by a Bristol company, and the PMS- made on the
:13:51. > :13:56.right-hand side. They are relatively simple. The horns, you can sit on it
:13:57. > :14:03.and try it. But PMS is pretty open and honest and say that their design
:14:04. > :14:07.was inspired by the Trunkie. They took the matter to the courts in the
:14:08. > :14:12.UK, one in the High Court, lost in the Appeal Court and today, they are
:14:13. > :14:17.in the Supreme Court in the UK and they will hopefully get a determined
:14:18. > :14:23.ruling as to what is permitted. If Trunkie wins the case, it means that
:14:24. > :14:27.PMS's case cannot longer be sold and the UK, and possible Europe. We
:14:28. > :14:30.stress that it does not mean they cannot sell them elsewhere around
:14:31. > :14:35.the world, especially Asia, where they are from. But it is a very
:14:36. > :14:39.important case for these designs, because this is not a patents, this
:14:40. > :14:44.is a community registered design. And a lot of people who design stuff
:14:45. > :14:47.very best a lot of money in this, so need to know that what the designers
:14:48. > :14:53.protected all around the world, not the UK. 'S great stuff. We will
:14:54. > :14:57.thought to you soon. Shall we pick up this? You are
:14:58. > :15:03.domestic by! The honour of Primark has figures
:15:04. > :15:14.out today. You're watching Business Live.
:15:15. > :15:16.Our top story: Lawmakers consider new rules
:15:17. > :15:19.in California that could limit how It's one of a number
:15:20. > :15:23.of court cases seeking to crack down on the business which lets
:15:24. > :15:27.anyone make money renting out spare Could it signal the end
:15:28. > :15:46.of $25 billion website Airbnb? An interesting story. It could have
:15:47. > :15:50.implications for websites like YouTuber.
:15:51. > :15:58.Now can you really fly to Boston from London for as little as ?99?
:15:59. > :16:01.Well, that's the claim of today's big boss Skuli Mogensen.
:16:02. > :16:03.He is the owner, Chief Executive and founder
:16:04. > :16:12.After a 20 year career as an entrepreneur and investor, he
:16:13. > :16:16.Describing itself as "the airline with the biggest smile
:16:17. > :16:21.Wow Air launched transatlantic services from Boston and
:16:22. > :16:28.Washington DC to European cities all via Reykjavik in early 2015 for
:16:29. > :16:33.as little as ?99 that's just over a $150 one way.
:16:34. > :16:36.From May next year, it launches four more north American routes.
:16:37. > :16:40.Most notably, those ?99 prices are for one-way flights.
:16:41. > :16:43.While Iceland is a beautiful country, it's safe to assume most
:16:44. > :16:45.travellers will be interested in a return flight and that often
:16:46. > :16:52.The cheapest seats are also limited in number.
:16:53. > :16:55.The budget airline is not the first to bet
:16:56. > :17:01.Others have tried and failed Oasis Hong Kong Airlines, which began
:17:02. > :17:06.flights between Hong Kong and London in 2006, ceased trading in 2008,
:17:07. > :17:08.the same year that Zoom Airlines of Canada which offered cheap flights
:17:09. > :17:16.between London and Canada also stopped operations.
:17:17. > :17:24.Well, let's find out because Skuli Mogensen is the big boss of Wow Air
:17:25. > :17:27.and joins us. Hi. I'm going to show off a little
:17:28. > :17:31.Danish language. I need to start with this. No disrespect, you look
:17:32. > :17:35.like a smart man, you have got a great background, you are a money
:17:36. > :17:40.man, you have come from an investment background. There is a
:17:41. > :17:46.saying in the airline industry, "How do you make $1 million running an
:17:47. > :17:51.airline, you start with $1 billion." Why an airline? It is so much fun.
:17:52. > :17:56.In reality, the timing is everything. So the low-cost industry
:17:57. > :18:00.has been extremely successful domestically in Europe and
:18:01. > :18:03.domestically in the US and domestically in Asia. As a result
:18:04. > :18:08.the consumer is educated and we like to say we target the smart consumer,
:18:09. > :18:15.you go online and you do the comparison shopping and you go on
:18:16. > :18:18.Trip Advisor, and then you buy. So the consumers are comfortable doing
:18:19. > :18:22.this and the same logic applies when you want to fly long haul, short
:18:23. > :18:27.haul, wherever you want to go. Zbleu spoke to you roughly a year ago,
:18:28. > :18:33.pretty close to a year ago when you were talking about, well launching
:18:34. > :18:38.the flights from Europe to Boston and Washington DC. Right. So you've
:18:39. > :18:42.had a year. Bums on seats, how has it been going on board the planes?
:18:43. > :18:45.It has been going phonomenally. We are growing aggressively. We are
:18:46. > :18:51.more than doubling our capacity for next year. Adding Los Angeles and
:18:52. > :18:56.San Francisco, adding three new Airbus A 330s, we are excited. The
:18:57. > :19:01.load factor on Boston... What are the load factors? Over 90% since
:19:02. > :19:05.launch to date. Speaking of capacity, I did a quick very
:19:06. > :19:08.unscientific search looking on various websites about reviews and
:19:09. > :19:12.satisfaction. A lot of the criticism is that you only have two planes at
:19:13. > :19:16.the moment doing that route. The problem is if you get a fault with
:19:17. > :19:20.one, that causes huge delays, you're not able to pull another one into
:19:21. > :19:25.service. Houz do you reassure people if they are getting a cheap flight,
:19:26. > :19:29.yes they are going to have to put up with certain problems, but if you
:19:30. > :19:34.have only got two planes, there will be huge delays if one goes out of
:19:35. > :19:38.service? So far we had two planes going to North America. As of next
:19:39. > :19:43.spring, we will seven planes going to North America. So already, that
:19:44. > :19:48.issue is becoming much, much better and over time that's only going to
:19:49. > :19:52.continue to improve. I think the again, it's something that we all
:19:53. > :19:55.face coming into London yesterday, or the day before, with the fog, you
:19:56. > :19:59.know, we can't deal with the weather.
:20:00. > :20:08.Talking of planes, let me ask you this, last week I spoke to the CEO
:20:09. > :20:13.of Norwegian Air, a competitor. They do long haul, low-cost, they use the
:20:14. > :20:18.787 Dreamliner, very efficient plane, etcetera, it can be used 18
:20:19. > :20:23.to 19 hours a day, utilisation rate, they call that, so that's very good.
:20:24. > :20:26.You're doing a 330, been around for a long time. Can you make low-cost,
:20:27. > :20:34.long haul successful on that aircraft? Absolutely. I think the
:20:35. > :20:39.same principle applies. High utilisation and quick turn around
:20:40. > :20:43.and high load numbers. You achieve this which interacting with the
:20:44. > :20:49.consumer and offering the greatest fares. They are demonstrating and
:20:50. > :20:53.proving the model. Low-cost carriers do very well when the oil price is
:20:54. > :20:58.low. It means your costs are much lower. What happens when they start
:20:59. > :21:03.rising? It suddenly starts eating into your margins and you make less
:21:04. > :21:10.per flight? A good low-cost carrier will do better in all times because
:21:11. > :21:17.our overall structure is better than the legacy carriers. Good luck. I
:21:18. > :21:19.know you're in London for the World Travel Market. Skuli Mogensen, thank
:21:20. > :21:28.you. In a moment we'll take
:21:29. > :21:31.a look through the Business Pages but first here's a quick reminder
:21:32. > :21:41.of how to get in touch with us. The Business Live web page is where
:21:42. > :21:44.you can keep up-to-date. We will give you insight and analysis from
:21:45. > :21:50.the BBC's team of editors around the world and we want to hear from you
:21:51. > :21:55.too. Get involved on the BBC Business Live web page. Or on
:21:56. > :22:01.Twitter, we're at: And you can find us on Facebook:
:22:02. > :22:12.Business Live on TV and online wherever you need to know.
:22:13. > :22:19.Jessica is back. Amazon famous for being an line book store. I put the
:22:20. > :22:28.question out there, we have got a couple of tweets. Before we get your
:22:29. > :22:34.thoughts, Ryan says "Last book online to make sure I got it on
:22:35. > :22:40.release date." Another viewer says, "Always buy them in shops. If I
:22:41. > :22:47.can't find them there, grudgingly, I result to online bookshops." James
:22:48. > :22:51.says he bought a first edition online. Independent shops have
:22:52. > :22:54.pretty much died off. All that is related to the buying power of
:22:55. > :22:58.Amazon, if they are able to get the scale that they have through the
:22:59. > :23:02.website and maybe put the best titles in is that the plan snrchlts
:23:03. > :23:06.they will be at the same prices as they have online. It is toe in the
:23:07. > :23:14.water really. One bookshop. But it is also interesting about drop that
:23:15. > :23:18.e-book sales are peeking and so actually, you know, as your tweeters
:23:19. > :23:24.there say that people like the physical experience of going into a
:23:25. > :23:27.shop. You know, you will still be able to do the e-books in there, but
:23:28. > :23:37.it is a dual track process is perhaps the way forward.
:23:38. > :23:41.A lot of people would have blamed Amazon for the closure of bricks and
:23:42. > :23:46.more tar bookshops. They have dominated online in terms of book
:23:47. > :23:52.sales. Now let's go into bricks and more tar and whoever is left, we'll
:23:53. > :24:04.get rid of them. No comment. Let's move on. The story in the Wall
:24:05. > :24:13.Street Journal this is to do with Candy Crush. Really interesting.
:24:14. > :24:15.This follows on the back of Microsoft buying Minecraft. Big
:24:16. > :24:19.companies are preparing to invest in the gaming space and in particular,
:24:20. > :24:24.in the gaming space. I think the interesting thing about the price,
:24:25. > :24:35.it was below the floatation price of King when it floated. I think again,
:24:36. > :24:37.that was last year. So they have struggled since Candy Crush and it
:24:38. > :24:43.is interesting they are taking the option to be part of a bigger group.
:24:44. > :24:53.Talking about big spending, I want to squeeze this next story in, Saudi
:24:54. > :24:58.consumers are spending like the oil crash never happened. They have a
:24:59. > :25:02.lot of oil wealth. We are seeing a movement with Saudi sovereign wealth
:25:03. > :25:07.funds. They are taking money out to maintain the spending on their
:25:08. > :25:11.population? Exactly. We see impressed about the Saudi repaytry
:25:12. > :25:16.ating capital back. They are still giving bonuses and a lot out to the
:25:17. > :25:22.locals. But again, I think you need to think about the social unrest in
:25:23. > :25:29.the backdrop and it will be an important consideration in their
:25:30. > :25:32.minds. Is it keeping the local population happy? Within Saudi and
:25:33. > :25:37.within the wider region. I think they will be thinking perhaps, you
:25:38. > :25:40.know, this is cheap for stability. The question, of course, always is
:25:41. > :25:44.how long that can continue with oil prices at a new normal levels and
:25:45. > :25:48.whether they can continue? The funds only have so much money in them.
:25:49. > :25:52.Jessica, great stuff, we always appreciate your time.
:25:53. > :25:55.Thank you for your company today. You're up-to-date with the business
:25:56. > :26:07.headlines. We will see you very soon. Bye-bye.
:26:08. > :26:16.Hello there. The fog caused a lot of problems yesterday across much of
:26:17. > :26:18.the countriment we had sunny hotspots