20/11/2015 BBC Business Live


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This is Business Live from BBC News with Aaron Heslehurst and


Crypto currency crackdown - could Bitcoin become a victim


Live from London, that's our top story on 20th November.


One week on from an attack that rocked a nation - Ministers will


meet in Brussels today to discuss what they can do to tackle terror


Also in the programme....


A diamond nearly the size of a tennis ball has been found


in Botswana - the second-biggest ever unearthed.


And all eyes will be on the ECB President Mario Draghi and his


thoughts on the prospects of a Eurozone recovery. It is all go in


the studio! With three billion barrels


of oil now sitting in storage and the price falling to record lows


this week - we look at how long the industry can go on producing more of


the black stuff than anyone needs. So now Facebook says


its trialing new tools to make it less painful when you break up with


someone by altering what you can see of them, but without them knowing


you've done anything. If you've broken up do you


care what your partner does? We start with the virtual currency


bitcoin - we are asking whether it could become a victim


of the fight against terrorism. Later today EU interior


and justice ministers will meet to discuss how to combat the militant


group IS and the way it's financed. According to reports -


they are planning a crackdown on virtual currencies


and anonymous payment methods, the Users can buy bitcoins at


exchanges using Once purchased,


the bitcoins can then be transferred online to other users quickly and


anonymously - without verification That has made them attractive to


users ranging from drug dealers to those trying to get around capital


controls in Greece or China. Jonathan Levin,


Co-Founder of Chainalysis. It provides anti money laundering


software for digital currencies. Great to have you in the studio, do


we have any evidence that so-called Isis and other terror organisations


are using bitcoins to fund activities? We have no evidence so


far that bitcoins have been used to fund any incidents relating to last


week. We do have evidence that there have been bitcoin routing numbers


posted on the Internet to raise funding from the crowd, but none of


them have had significant funding today. I was reading this late


afternoon yesterday, saying that the EU would sit together at this


emergency meeting and I was wondering, I can't imagine Isis are


using bitcoins and buying weapons that way, cash is king. Some would


say that cash is what we have to keep an eye on and could be the


issue? The UK Government put out a report last month on


money-laundering risks and terror financing risks of different


systems. Banks come on top of that with cash as well rating highly.


Digital currencies were at the bottom of the risk factor. That is


due to liquidity but also slightly to do with how trace of bitcoin is.


Arab business is predicated on tracing bitcoins from different


service providers. -- our business. We are talking about prepaid credit


cards and gold and different many services that are going to be looked


at in terms of regulation. It is important to read past the headline,


the clamp-down is to do with the EU putting out guidelines regarding


KYC, know your customer requirements. They rely on banking


infrastructure. It is about record-keeping and enhancing their


effective controls that these money servicing businesses have to do. If


it is a collective agreement can the EU working with banks to put some


sort of control on all of this? In the US they have very good


legislation which digital currency businesses have to register with the


regulator. It is a very collaborative relationship with


Loren Portman and regulators and digital currency businesses. -- law


enforcement. It has to be a balance of knowing your customer


requirements and also not driving it underground which could be the case


if you overreact. We appreciate you coming in. Have a great weekend. We


appreciate that. Thanks very much. In other news...


The Dutch government is expected to raise around 4 billion euros this


Friday with the flotation of a 23 per cent stake in ABN Amro.


It's the biggest initial public offering of a European bank


since the financial crisis - and investor interest has been strong.


ABN was bailed out in 2008 at a cost of 22 billion euros -


Finance Minister Jeroen Dijsselbloem has admitted the Dutch taxpayer is


unlikely to get the full amount back.


Shares of mobile payments company Square surged on their Wall Street


The flotation had been heavily discounted


amid market concerns over the high valuations of tech startups.


It was a welcome birthday present for its founder, Twitter CEO Jack


He's still the largest shareholder in Square - his 21 per cent stake is


Volkswagen has until today to tell US regulators how it plans to fix


almost half a million diesel cars sold in the US that are involved


Experts say it will have to fit most of them with either new exhaust


systems or chemical treatment devices - both likely to be very


expensive - and it may prove cheaper to simply buy back older models


Let's take a look round the world at what's business stories are


Check out the site. It's a great site. It's a cracker! A hefty fine


for the South African mobile operator. $5.2 billion. Greece


passes the bailout bill. That of course paves the way for the state


to be able to pay its debts and recapitalise the banks. This has


been the big issue for Greece, the banking system, making sure they


have enough liquidity. Only in recent weeks there have been lots of


austerity protests going on in Greece at the moment. More protests


on the streets. It looks as though they will get their next chunk of


money and importantly money for the banks. Let's take a look at some of


the other stories and go straight over to Asia. Here is a cracking


story, Charlotte is in Singapore. Regulators


in Australia have scuppered a vast land sale that would have


been the country's biggest ever. Kidman and Company operates ten


cattle ranches over 101,000 square kilometers - an area


about the size of South Korea. It is indeed, a vast portfolio of


properties spread over four Australian states. The government


said that the property cannot be sold to Chinese investors. The


decision was announced on the basis that selling the land in its current


form would be contrary to the national interest. Specifically that


is because it is too close to a remote area used for weapons


testing. This is causing also observed confusion because Chinese


investors are allegedly linked to the Chinese government and they were


allowed to lease the port of Darwin giving them a look at the movement


of US troops stationed at the top end of Australia. That was judged to


pose no security problems. The Australian government says it is


open for foreign investment but a Shanghai -based real estate expert


has said that the latest decision trashes that claim. I am sure we


will keep across that. Let's have a quick look at the markets.


Closing higher for the fourth session in a row while the rest of


Asia was mixed. Taking on a weak lead from Wall Street where shares


were choppy at the prospect of higher interest rates and the theory


is gaining momentum. They have been rallying on federal reserve hints


that it may raise rates in December but that is a mixed blessing. Stocks


are climbing amid investor optimism in Europe. They will also be looking


at consumer confidence data and the speech from the ECB President Mario


Draghi for further indications of the health of the region of the


economy. What is making the headlines in the US?


On Thursday the US Treasury put in place further rules to discourage


US companies from buying smaller foreign rivals


in order to move their headquarters abroad and escape US taxes.


Wall Street will certainly be looking at how these rules could


affect a reportedly close deal between Pfizer and Allergan.


The deal could see the US drug giant relocate to Ireland.


And Volkswagen will have to explain to US regulators how they plan to


bring their nearly half of diesel cars, fit with pollution


cheating software, into compliance with emission standards.


Volkswagen president in America Michael Horne said he


And teen clothing chain Abercrombie and Fitch is expected to report


three quarters profits below analyst estimates, sales have


Joining us is David Buik from Panmure Gordon Co.


That is a familiar face! Good morning. Good morning. The markets,


driving the perception of the markets is that commodities are not


good but copper is fascinating. That is the one to watch. They are an


indicator? Slightly better than tea leaves. On a serious note, all of


the big rallies we have had, 1921, 32, 86, have been triggered by the


price of copper going up which is astonishing, think about gold or oil


or something of that nature, but it is copper. It made as to be a


coincidence. Copy used in everything. Yes, every kind of


manufacturing. Gold is very specific and often used for hedging and other


reasons. It is interesting. The other thing I found fascinating this


week is that we are now significantly below where we were 15


years ago with the price of all commodities. It is off by about a


since 2008 when they hit a high. People are starting to look at


mining shares which have been trashed since China put up the red


flag. Sorry, that is misleading! It was terrible. They put it up in


January, and the first quarter in China is when they looked as though


they were falling off the precipice but now it is panned out. China is


another barometer for commodities and it looks better. We have seen


people in the last week, not just putting their toe in the water to


buy some of this trash, but quite a lot. Not long ago Australian


companies where the beneficiaries and they had an upswing of three or


4%. We have run out of time but we will come back. We will talk to you


very shortly. With oil dropping below $40 a


barrel this week and global stockpiles at record


levels we ask if cheep oil is here Upgrades to Britain's aging rail


network will take longer than planned and cost more than expected,


according to a cross-party group And it may be passengers


who are left to pick up the tab. Ben is in Salford and is


following the story for us. You get around! Some of the highest


rail fares in Europe already, this will not go down well with train


passengers? No, and those passengers could end up picking up the tab.


Good morning to you both. Going back two years, ?38 billion was set aside


to upgrade the ageing infrastructure on the railways in the UK. A lot of


the money was destined for things like Crossrail and the Thames Link


in London but also the electrification of the Midlands


mainline and also the trans-Pennine route. All of those projects are at


various stages of completion, some more than others but the issue is


whether they will overrun in terms of cost and time. The cross-party


group of MPs have been saying that this is unacceptable, taking too


long and the money could rise even further. Just one example, the great


Western mainline from London to Cardiff was originally supposed to


cost ?1.6 billion and it could be close to ?2.8 billion. That is a


significant increase. I was talking to the chair of the committee and


she told me that the cost overruns and delays are unacceptable. An


acceptable for passengers and taxpayers. It will not be delivered


on time and to add insult to injury, the trains that are supposed to run


will arrive before the line is built. There are wider issues about


the overall management by Network Rail. The role of the regulator and


whether it is fit for purpose in the modern world.


The implications are for passengers, whether they will be asked to pick


up the that for that funding. We should say that from Network Rail's


point of view, they have delivered 5000 projects and they said they did


that on time and budget but they point to the West, there are a lot


of implications to the cost they will have to pay to get these


railways up and running. My secret! No time for the Facebook test! --


nice haircut! The EU prepares to clamp down


on Bitcoin and other anonymous payment systems as it tries to


tackle terror funding routes. Ministers are meeting in Brussels


today one week after those deadly Paris attacks that killed 129 people


and injured so many others. The price of oil dropped below $40


a barrel this week as supply Although this is great news


for consumers, many producers are Figures out today in the US


are expected to confirm this. The Baker Hughes Rig Count looks


at the demand for products used in With me to get more


on this is our Economics Can you explain what we have just


said. This is an American oilfield services company, Baker Riggs, the


provides a kind of active oil rigs and has international figures and it


is principally used by businesses in the oil business to get some sort of


assessment as to what demand they are likely to get for the product


used in getting oil out of the ground. It is a useful thing for


businesses that are actually in the industry so they have some kind of


flavour from what demand they will expect. It gives some overall


flavour as to what is going on in the wider industry although there is


no drag read from these figures into what oil production will be because


one of the reasons the oil price has stayed low is that despite what has


happened to the price in the last year, oil production in the US is


slightly up on what was compared with the big price back in June last


year. We know that the Saudi Arabians are still struggling to cut


output, some say they are playing a price game, they are not -- trying


to knock off these American fractures but at this price must be


a point where it is not cost-effective for some of those US


frackers. At the very least it is taking longer for that effect to


come through and the Saudis were expecting and the individual rigs


have a relatively short life span, not like one of these oilfields in


the Middle East, we're talking about if you years and even less in some


cases so we might eventually see some of these particular operations


finishing off the oil that is readily accessible and then a


slowdown in your ones coming on stream but that is the kind of game


that the Saudis are playing, it is not coming through quickly and they


can survive for a while with prices so low but it is reckoned they will


break even. The oil priests they need to balance the budget is about


more than double what it currently is. -- oil price. They have reserves


but the IMF reckons the Saudis will be running a deficit in the


government budget unless you are one of more than 20% of GDP. And this is


not just Saudis, when you look at Nigeria and Venezuela, everyone is


struggling? Venezuela is another striking example of the deficit, the


IMF is addicting 24% of GDP, reflected in their dreadful


inflation problem. There are lots of males being bitten in lots of


countries, particularly Nigeria, Venezuela and Iran, they don't have


the kind of reservists to fall back on that the Saudis and Russia have.


Saudi Arabia, we're hearing it is already dipping into its wealth fund


just to keep everybody happy and you cannot keep doing that. We get the


sense that the commodities, including oil, were in the lower


area, we could stay here for some time? That might well be the case,


commodities are driven by demand factors to a large extent and the


aftermath of big investment and new capacity in the last decade but with


oil there is the specific element of shale in North America and is the


possibility that might run down in the next couple of years, which


might take some of the edge off this. But I don't think anybody is


really expecting a big turnaround in the near future. We always


appreciate your time, thank you. It has been a busy week and have a good


weekend. We will look to the business pages but here is a quick


reminder of how to get in touch. The web page is where we can keep you


up-to-date with the latest details. Insider analysis from the BBC team.


And we want to hear from you get involved on the Business Live web


page, Twitter and Facebook. Whenever you need to know... David is back.


Another amazing story. This is in the Wall Street Journal and the


Telegraph, everywhere, this is a diamond the size of a tennis ball


found in Botswana and apparently it is so big they cannot get it into


the scanner to work out how clear it is, how many carats, it has to go to


Antwerp to be assessed. I understand that Antwerp and India, the other


major centres in terms of finding the sort of thing out, as it is


staggering, I think the last time anything of the size was when the


Crown Jewels were made 100 years ago. And in Botswana, which I did


not know, it is the second largest producer of diamonds in the world


next to Russia. I had no idea! There you go! Quite staggering and how


anybody is going to learn how to clean it and make it commercially


viable... We wait! We do know the carat. What do you have? 813? This


one is 1111 carats! That is grown-up! 1000 times the size of


your average engagement ring! Erm... Yes! The Crown Jewels, the great


star of Africa. Yes. We can talk about this story in the Financial


Times about the London property market, the prime property market


and lots of the buyers are deserting it, a combination of the emerging


market world and stamp duty? And we need to go back on if you recall,


starting dropping against the dollar at the time of the financial crisis


by 20% and they were flooding in here, Asians, Russians, Greeks,


everybody. It was a safe haven? It was, but the irony is, old gits like


me, we are looking to downsize and this is why you links and actins,


they have become ridiculously expensive and transactions, as a


result of what you said, basically, the emerging market downturn, and


when you pay 5% stamp duty on a house with ?5 million, that is quite


a large sum. Transactions are down 19%, which is quite considerable,


and there are other reasons. The Chinese, which 9%, Asians 26%


overall, Russia, only 1% and domestic buyers, in central parts of


London, Kensington, Knightsbridge, 42%. Which did surprise me. When


this create a correction? We're only talking about high-end properties


will this trickle-down? Give us some correction? The only thing that will


move house prices is cheap land and money and as a big estate agents are


saying, but prices are not going down, it is just business. We have


20 seconds. Star Wars has made 50 million pounds in predicted sales.


Yes, 200 and ?19 million in the first week. The show ?219 million. I


remember the first one, 1977. You will twinkle in your father's eye,


and I took my young son. Lovely to invite me! That izzard, plenty


business news throughout the day on the web age. Goodbye. -- web page.


It will be colder today than yesterday and will get colder still


over the weekend. Short, sharp bursts of cold air coming down from


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