03/11/2015 BBC Business Live

This is Business Live from the BBC

with Ben Thompson and Aaron Heslehurst.

Lawmakers consider new rules in California that could limit how

Could it signal the end of $25 billion rental site AirBnB?

Live from London, that's our top story on 3rd November 2015.

AirBnB has spent $8 million to try and defeat

the possible new rules and it's all being closely watched by cities

They're also considering tightening regulations.

Also in the programme, Standard Chartered is to cut 15,000

jobs after reporting heavy third-quarter losses.

We'll be live in Singapore for the latest.

And markets are doing this. We will get construction figures for the UK

a little later. Icelandic airline Wow Air promises

flights from Europe to the US But how can

the airline afford it and are We speak to the boss live here

on the programme. And today, Amazon has announced

plans to open its first So when did you last buy a book

and was it online or in a store? The accommodation website AirBnB has

shaken up the global travel industry - but

in its home town of San Francisco Residents are due to vote later

on Tuesday on a proposal to limit short-term rentals on apartments

and homes to just 75 days per year with the websites themselves

responsible for removing listings The

company has spent 8 million dollars The ballot is being closely watched

by cities like New York and Los Angeles, which are also considering

tightening regulations. And this is what is making some

locals in San Francisco angry. Over the past five years, average

rent has risen by more than 75%,

with sites like AirBnB being blamed Of course,

AirBnB isn't the only example of a sharing economy platform

facing regulatory challenges - don't forget Uber's facing

regulatory issues in France, Brazil Raoul Lumb, Associate at

Hill Hofstetter solicitors. I want to start with the chart Ben

was showing us. Candy company be blamed for pushing rental prices?

Those on the yes campaign will see that in five years they have gone up

75%. Their campaign is that the company allows people to take houses

out of the regular rental market of long-term latent tenants and push

them into their holiday sector for short-term, quick turnover

high-priced rentals. They say it pushes up. Airbnb has been around

for seven years there has been a housing crisis for five years. They

say that they cannot be doing it because they are pushing up the

supply, and therefore they are bringing housing prices down.

I'm just trying to work out, there is a valid point of some will say

here, because many who rent their home made, or a second home, Philly

under Airbnb, it is running a business. Typically, you have to pay

something when you run a business, it is called taxation! That is what

they have been getting away with? That is what the yes campaign says.

If you're somebody who rent out your house for more than 75 days a year,

a homeless, not just a room, they say that this is a business and

something which should be regulated like a hostel or B and it should

be taxed and have the same reporting requirements that businesses have.

'S the issue at the moment is the fact that it is often more lucrative

for people to rent out their place on a short-term lead, make a lot

more money for it to visitors, rather than for the domestic

population. That has got people in San Francisco so angry. They are

being priced out of the market because all these tourists coming in

for two weeks and they cannot get anywhere to rent.

That is one of the things this proposition says. Airbnb of other

mining communities in the bullets, forcing people who would be on

long-term lets and turning it into a short-term holiday site. Very

briefly, you mentioned this in your introduction, Goober is facing

regulation in many cities around the world, Airbnb as well. Is this a

classic case of the law, regulation, trying to catch up with technology

because it is Goodwin Sands bones? Absolutely. This is the law and

public disgraced catching up with technology and marketing of the

technology. There has been a share in economy, such as Uber, would you

mentioned, and regulators in society are keeping. Is the way this company

does this desirable because it need extra oversight? This is the first

step on a long journey. Great stuff, we appreciate your time. Thank you

very much for coming in. US video games producer

Activision Blizzard will buy the company behind Candy Crush -

King Digital - for $5.9 billion. Activision which makes Call of Duty

and Guitar Hero, says the purchase will create one

of the largest global entertainment It will have over half a billion

monthly users in 196 countries. Here is a story that keeps on

giving. Volkswagen has denied claims by US

regulators that some of its luxury brands were also fitted with devices

to cheat pollution tests. The Environmental Protection Agency

said at least 10,000 vehicles with six cylinder,

three litre engines, such as Tech giant Google has announced

a date for the launch It's called Project Wing and aims to

deliver goods to consumers using the Not as far as you would think.

Others are experimenting. Does it depend on where you live?

What if you live in an apartment? You have to hang out of the window!

, thank you! BMW has a surprise profit. We are talking about the

past three months, it has had a strong field in the European

market. Offsetting that weakness in demand in China. What was the

profit? Before tax, this is, 2.2 billion euros. Thank you very much,

there you go. Revenue, 22.3 billion. Plenty of other stories there,

including more on Standard Chartered. But that is our next

story of love. -- story as well. Standard Chartered is to to cut

15,000 jobs and raise over $5bn See what I did there?

This is a really big clean-up and I should tell you how the share prices

responded to that cling to start with, because these are then slung

around 4% in trade in Hong Kong. It clawed back a bit. We have caused

just recently in Hong Kong down more than 3% and are continuing to slide

in London. But this is a clean-up that has been going for quite a

while. Ever since the new CEO took over in the middle of the year. And

this capital raising is not unexpected. Many people have been

seeing it on the card since June. He started the restructure but today's

members illustrate the scale of the problem. $139 million compared with

a profit of 1.53 billion just one year earlier. We get this big

capital raising and a lot more jobs are going to go.

Good stuff, thank you very much. A quick look at the numbers. A bit

of a mixed session in Asia, despite cautious optimism. We have seen weak

Chinese domestic demand over the weekend but we have also had good

figures from manufacturing in the UK, and the Eurozone yesterday. I

want to trade the European numbers because markets yesterday ending

pretty upbeat but in early trade, from the loss of there. Nonetheless

we will be keeping a clear, -- a close eye on construction figures,

due in the next hour, giving us an idea on how the market and economy

is performing stock it makes up just a small part of the economy,

however. What is happening on Wall Street?

On Tuesday, we will see how close US auto-maker are to breaking the

all-time Celtic are set in 2000. Analysts expect Americans love but

11% more crisis October compared to last year and are on track by 17.4

million vehicles in 2050. But for some companies it is another story.

Tesla will release numbers on orders for its model X all electric SUV and

give an update on the status of its five million dollar battery factory

in Nevada. Those men and voters at the polls in San Francisco to decide

whether or not to restrict the number of knife landlords can rent

their homes to Airbnb and similar services. They have spent $8 million

campaigning against the measure. We know that one! I am joking. We

are joined by Jessica. Manufacturing, a big day yesterday

but stop we will be watching the markets closely. Very closely. All

that about this year has been emerging markets. Disappointing and

everybody is turning to the developed markets to spearhead the

growth. We have been talking to some US companies and the message is a

bit mixed. There is definitely a benefit from lower oil price but

actually, consumers are not spending as much as we thought. How much are

we hanging onto these individual bits of data? We are wondering who

will fire the starting first raising rates, the UK or US, and every time

we get figures by construction, manufacturing, we get very excited

about whether this is the one that means rates go up. How closely

should we watch them? Rate rises, when they happen, whether first in

the US or UK, will be a seminal moment. They have been low for so

long. But I think the thing that we have learned a this recession is

that it has been what I would call a bath tub. We have been bumping along

the bottom for a long time. Rate rises have been pushed out try that.

I am not sure that pattern is necessarily going to change that

quickly. Jessica, you know how we make you guys work on our programme!

You'll come back and taken through some of the papers. You will talk to

you soon. Also coming up: Apostles and Atlantic Elaine will be

sure to tell of how he intends to crack the market for cheap flights

between the US and Europe. Many of course have tried and failed. Will

this one be a success? You're with Business Live from BBC

news. Was neither is an important battle going on in the cut-throat

world of children's toys relating to intellectual property rights and the

outcome will be watched coarsely around

have you ever heard of Trunkie? It is a cross between a toy and

luggage. I have seen them throughout

airports. But the product, designed in the UK, has become a victim of

its own success, spawning copycat manufacturers with rival designs.

The company that owns the Trunkie may spend more money fighting

patents battle than on research and development.

Astonishing. Today, here before the Court hoping to shut down the

biggest rivals, PMS of Hong Kong. We have run through...

You have not left me much to the! If you are a parent of young

children, as I am, you will be familiar with these products. Both

Trunkie, on the left, by a Bristol company, and the PMS- made on the

right-hand side. They are relatively simple. The horns, you can sit on it

and try it. But PMS is pretty open and honest and say that their design

was inspired by the Trunkie. They took the matter to the courts in the

UK, one in the High Court, lost in the Appeal Court and today, they are

in the Supreme Court in the UK and they will hopefully get a determined

ruling as to what is permitted. If Trunkie wins the case, it means that

PMS's case cannot longer be sold and the UK, and possible Europe. We

stress that it does not mean they cannot sell them elsewhere around

the world, especially Asia, where they are from. But it is a very

important case for these designs, because this is not a patents, this

is a community registered design. And a lot of people who design stuff

very best a lot of money in this, so need to know that what the designers

protected all around the world, not the UK. 'S great stuff. We will

thought to you soon. Shall we pick up this? You are

domestic by! The honour of Primark has figures

out today. You're watching Business Live.

Our top story: Lawmakers consider new rules

in California that could limit how It's one of a number

of court cases seeking to crack down on the business which lets

anyone make money renting out spare Could it signal the end

of $25 billion website Airbnb? An interesting story. It could have

implications for websites like YouTuber.

Now can you really fly to Boston from London for as little as ?99?

Well, that's the claim of today's big boss Skuli Mogensen.

He is the owner, Chief Executive and founder

After a 20 year career as an entrepreneur and investor, he

Describing itself as "the airline with the biggest smile

Wow Air launched transatlantic services from Boston and

Washington DC to European cities all via Reykjavik in early 2015 for

as little as ?99 that's just over a $150 one way.

From May next year, it launches four more north American routes.

Most notably, those ?99 prices are for one-way flights.

While Iceland is a beautiful country, it's safe to assume most

travellers will be interested in a return flight and that often

The cheapest seats are also limited in number.

The budget airline is not the first to bet

Others have tried and failed Oasis Hong Kong Airlines, which began

flights between Hong Kong and London in 2006, ceased trading in 2008,

the same year that Zoom Airlines of Canada which offered cheap flights

between London and Canada also stopped operations.

Well, let's find out because Skuli Mogensen is the big boss of Wow Air

and joins us. Hi. I'm going to show off a little

Danish language. I need to start with this. No disrespect, you look

like a smart man, you have got a great background, you are a money

man, you have come from an investment background. There is a

saying in the airline industry, "How do you make $1 million running an

airline, you start with $1 billion." Why an airline? It is so much fun.

In reality, the timing is everything. So the low-cost industry

has been extremely successful domestically in Europe and

domestically in the US and domestically in Asia. As a result

the consumer is educated and we like to say we target the smart consumer,

you go online and you do the comparison shopping and you go on

Trip Advisor, and then you buy. So the consumers are comfortable doing

this and the same logic applies when you want to fly long haul, short

haul, wherever you want to go. Zbleu spoke to you roughly a year ago,

pretty close to a year ago when you were talking about, well launching

the flights from Europe to Boston and Washington DC. Right. So you've

had a year. Bums on seats, how has it been going on board the planes?

It has been going phonomenally. We are growing aggressively. We are

more than doubling our capacity for next year. Adding Los Angeles and

San Francisco, adding three new Airbus A 330s, we are excited. The

load factor on Boston... What are the load factors? Over 90% since

launch to date. Speaking of capacity, I did a quick very

unscientific search looking on various websites about reviews and

satisfaction. A lot of the criticism is that you only have two planes at

the moment doing that route. The problem is if you get a fault with

one, that causes huge delays, you're not able to pull another one into

service. Houz do you reassure people if they are getting a cheap flight,

yes they are going to have to put up with certain problems, but if you

have only got two planes, there will be huge delays if one goes out of

service? So far we had two planes going to North America. As of next

spring, we will seven planes going to North America. So already, that

issue is becoming much, much better and over time that's only going to

continue to improve. I think the again, it's something that we all

face coming into London yesterday, or the day before, with the fog, you

know, we can't deal with the weather.

Talking of planes, let me ask you this, last week I spoke to the CEO

of Norwegian Air, a competitor. They do long haul, low-cost, they use the

787 Dreamliner, very efficient plane, etcetera, it can be used 18

to 19 hours a day, utilisation rate, they call that, so that's very good.

You're doing a 330, been around for a long time. Can you make low-cost,

long haul successful on that aircraft? Absolutely. I think the

same principle applies. High utilisation and quick turn around

and high load numbers. You achieve this which interacting with the

consumer and offering the greatest fares. They are demonstrating and

proving the model. Low-cost carriers do very well when the oil price is

low. It means your costs are much lower. What happens when they start

rising? It suddenly starts eating into your margins and you make less

per flight? A good low-cost carrier will do better in all times because

our overall structure is better than the legacy carriers. Good luck. I

know you're in London for the World Travel Market. Skuli Mogensen, thank

you. In a moment we'll take

a look through the Business Pages but first here's a quick reminder

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Jessica is back. Amazon famous for being an line book store. I put the

question out there, we have got a couple of tweets. Before we get your

thoughts, Ryan says "Last book online to make sure I got it on

release date." Another viewer says, "Always buy them in shops. If I

can't find them there, grudgingly, I result to online bookshops." James

says he bought a first edition online. Independent shops have

pretty much died off. All that is related to the buying power of

Amazon, if they are able to get the scale that they have through the

website and maybe put the best titles in is that the plan snrchlts

they will be at the same prices as they have online. It is toe in the

water really. One bookshop. But it is also interesting about drop that

e-book sales are peeking and so actually, you know, as your tweeters

there say that people like the physical experience of going into a

shop. You know, you will still be able to do the e-books in there, but

it is a dual track process is perhaps the way forward.

A lot of people would have blamed Amazon for the closure of bricks and

more tar bookshops. They have dominated online in terms of book

sales. Now let's go into bricks and more tar and whoever is left, we'll

get rid of them. No comment. Let's move on. The story in the Wall

Street Journal this is to do with Candy Crush. Really interesting.

This follows on the back of Microsoft buying Minecraft. Big

companies are preparing to invest in the gaming space and in particular,

in the gaming space. I think the interesting thing about the price,

it was below the floatation price of King when it floated. I think again,

that was last year. So they have struggled since Candy Crush and it

is interesting they are taking the option to be part of a bigger group.

Talking about big spending, I want to squeeze this next story in, Saudi

consumers are spending like the oil crash never happened. They have a

lot of oil wealth. We are seeing a movement with Saudi sovereign wealth

funds. They are taking money out to maintain the spending on their

population? Exactly. We see impressed about the Saudi repaytry

ating capital back. They are still giving bonuses and a lot out to the

locals. But again, I think you need to think about the social unrest in

the backdrop and it will be an important consideration in their

minds. Is it keeping the local population happy? Within Saudi and

within the wider region. I think they will be thinking perhaps, you

know, this is cheap for stability. The question, of course, always is

how long that can continue with oil prices at a new normal levels and

whether they can continue? The funds only have so much money in them.

Jessica, great stuff, we always appreciate your time.

Thank you for your company today. You're up-to-date with the business

headlines. We will see you very soon. Bye-bye.

Hello there. The fog caused a lot of problems yesterday across much of

the countriment we had sunny hotspots