:00:00. > :00:07.This is Business Live from BBC News with Ben Thompson and Aaron
:00:08. > :00:17.T-changing the rules for content access in Europe. Hey, could this be
:00:18. > :00:20.the end for geo-blocking? Live from London, that's our top
:00:21. > :00:34.story on Wednesday 9th December. Watch what you what,
:00:35. > :00:36.wherever you are. The EU considers proposals that
:00:37. > :00:40.could end geo-blocking in Europe. But media firms fear a loss
:00:41. > :00:45.of revenue and big copyright bills. Commodity prices fall further
:00:46. > :01:05.with oil below $40 and iron ore The markets were hammered yesterday
:01:06. > :01:10.with the fall in commodity prices. The mining index was at a ten year
:01:11. > :01:12.low. That's what they're doing now. We will discuss why.
:01:13. > :01:16.Or would you be happy with a bottle of British bubbly?
:01:17. > :01:19.We'll be getting the inside track on the English wine industry
:01:20. > :01:21.when we speak to the CEO of the country's leading vineyard
:01:22. > :01:35.As the cost of a traditional British Christmas dinner falls
:01:36. > :01:38.to a four-year low with cheaper turkey, pork and potato prices.
:01:39. > :01:40.We want to know what you're stocking up on?
:01:41. > :01:43.So whereever you are in the world, tell us you're preferred
:01:44. > :02:05.Technology may mean that we can carry around entire music and video
:02:06. > :02:09.collections in our pockets on smartphones or tablets,
:02:10. > :02:12.but it doesn't mean you can watch them everywhere.
:02:13. > :02:16.When you travel abroad, suddenly you can't get access
:02:17. > :02:26.But it's all down to copyright and what's known as geo-blocking,
:02:27. > :02:28.granting access according to where you're geographically located.
:02:29. > :02:33.It's what firms like Netflix, Hulu and YouTube use to make
:02:34. > :02:36.sure their content is only broadcast where it has been licensed
:02:37. > :02:40.Now the European Commission wants to stop it across the EU.
:02:41. > :02:42.If the proposal gets approval, anything available in one member
:02:43. > :02:45.country would also be available in all others.
:02:46. > :02:48.As you might expect, the media content industry is dead
:02:49. > :02:51.against the proposals fearing that it could cost them a fortune
:02:52. > :03:01.Raould Lumb is an Associate at Hill Hofstetter.
:03:02. > :03:09.It is always good to have you with us. The media industry, many parts
:03:10. > :03:13.of it are not happy with this. I'm getting it clear, the reason is and
:03:14. > :03:15.correct me if I'm wrong, they licence the content in each country
:03:16. > :03:22.and they make money in each country, right?
:03:23. > :03:26.Yes, absolutely. When the measure anti-geo-blocking was announced
:03:27. > :03:30.there was outrage from the audio visual content industry who said you
:03:31. > :03:36.are going to divide the value of our product by 28. There has been a lot
:03:37. > :03:40.of lobbying by them and we are expecting more limited crackdown on
:03:41. > :03:45.some geo-blocking practises today. When we talk about this, we talk
:03:46. > :03:48.about all content, the BBCi player for example, right? Could be. What
:03:49. > :03:52.we are expecting today is something to increase the portability of media
:03:53. > :03:55.rather than to end geo-blocking altogether. The European Union will
:03:56. > :04:00.be giving us a draft regulation which says we are a consumer buys a
:04:01. > :04:04.product in country A, they will have the ability to watch that in country
:04:05. > :04:08.B, C and D, no matter where they move through the European Union.
:04:09. > :04:15.Ben, you want to come into this. Can I ask you this, I want to make this
:04:16. > :04:19.clear, the BBC, Netflix, they make their own content, but the majority
:04:20. > :04:24.buy in their content. What does this mean for the original content
:04:25. > :04:28.provider? It might not be the BBC's fault or Netflix? The content
:04:29. > :04:33.provider has a monopoly over their IP and their product. They want to
:04:34. > :04:38.sell that. What will have to happen in order to end geoblocking is to
:04:39. > :04:41.undermine those local monopolies and to allow people to carry their
:04:42. > :04:46.rights from one local monopoly into another. It is a rare situation
:04:47. > :04:51.which the law might be more complex than the technology. You imagine if
:04:52. > :04:54.you've paid for access to a site, be it a BBC licence fee or whatever it
:04:55. > :04:58.is you paid for, you would expect to be able to take that with you. There
:04:59. > :05:02.are so many other industries you can do that, if you buy something and it
:05:03. > :05:05.is portable, you can do with it what you want. You have paid for this
:05:06. > :05:09.service already, why not be able to access it elsewhere? It seems very
:05:10. > :05:12.old-fashioned and it is the law holding back business practises, but
:05:13. > :05:16.the technical reason you can't is because the person you've said to
:05:17. > :05:20.distribute the content to you, be it Netflix or the BBCi player, that
:05:21. > :05:23.person has only got a right to distribute it to consumers in one
:05:24. > :05:26.country. When you move boundaries, even though you are accessing the
:05:27. > :05:29.internet they have got the technical ability to distribute it to you,
:05:30. > :05:31.they don't own the rights to beam that content to where you happen to
:05:32. > :05:34.be standing on the globe. Interesting. We could talk a lot
:05:35. > :05:44.more about this. Time is against us. Thank you very much.
:05:45. > :05:47.Some of the stories making headlines around the world.
:05:48. > :05:49.Dow Chemical and DuPont are reportedly in talks
:05:50. > :05:52.The combined company would have an estimated market value
:05:53. > :05:54.of $120 billion and employ over 100,000 people around the world.
:05:55. > :05:57.It's thought that if the deal goes ahead, the two companies would merge
:05:58. > :06:03.as equals with both chief executives retaining their jobs.
:06:04. > :06:07.One of the world's most famous gun-makers, Smith Wesson,
:06:08. > :06:09.has nearly tripled its profits in three months to October compared
:06:10. > :06:24.The firm said net income came in at $14.2 million,
:06:25. > :06:29.Some analysts have said the surge in gun sales across the US is due
:06:30. > :06:31.to worries over restrictions on gun ownership
:06:32. > :06:34.particularly in the wake of mass shooting incidents in the country.
:06:35. > :06:37.Shares in Yahoo have jumped more than 2% after reports it will not
:06:38. > :06:40.sell off its $32 billion stake in Chinese e-commerce group Alibaba.
:06:41. > :06:43.It follows pressure from investors worried about a potentially huge tax
:06:44. > :06:57.Yahoo is now looking at spinning off its core business instead.
:06:58. > :07:04.At this time we will look at the Business Live page. A story talking
:07:05. > :07:12.about the ongoing debate over the UK or Britain's continued membership of
:07:13. > :07:17.the EU. A story here, one of London's biggest firm, ICAP saying
:07:18. > :07:21.that the UK could thrive outside the EU. He has not made up his mind
:07:22. > :07:24.whether the UK should leave the EU. A further update on the falling oil
:07:25. > :07:27.price we have been talking about and we will discuss more about the
:07:28. > :07:31.falling oil price during the programme, but whilst it is good
:07:32. > :07:34.news and bad news depending on your prospective, if you are a producer
:07:35. > :07:37.of oil, not great news. If you are an organisation or a Government
:07:38. > :07:43.around the world... An importer. Not good news. Good news for drivers.
:07:44. > :07:45.Good news for oil importers. Talking of that, let's stay with that story,
:07:46. > :08:00.commodities in general. I want to talk about commodities and
:08:01. > :08:04.in particular iron ore, the price kind of fallen off a cliff. Let's
:08:05. > :08:10.get this straight, at the moment iron ore fell to a ten-year low, it
:08:11. > :08:15.is now $39.60 a tonight, but that doesn't make sense. What does that
:08:16. > :08:21.mean? It means, in 2011 it used to be nearly $200 a tonight, right?
:08:22. > :08:25.Absolute lie, Aaron, it is a tipping point. It is causing mining stocks
:08:26. > :08:30.to sink today. It is a huge come down from four years ago where it
:08:31. > :08:34.peaked close to $200 a tonne. Of course, we have been reporting lots
:08:35. > :08:38.about Anglo-American whose stocks have been sold off to a record low
:08:39. > :08:41.and that's after the company said it would sell huge chunks of its
:08:42. > :08:44.business as well reduce its workforce by nearly two-thirds and
:08:45. > :08:50.of course, that's a company that competes with the likes of BHP
:08:51. > :08:53.Billiton and Rio Tinto and I should add those stocks actually closed
:08:54. > :08:59.mixed today on the Australian exchange. Rio Tinto down under 1%,
:09:00. > :09:03.BHP gaining some. We know the news is that Rio Tinto hasn't been helped
:09:04. > :09:07.by news that it is cutting spending plans too and it is joining its
:09:08. > :09:10.peers in the mining sector in reducing all the costs in the face
:09:11. > :09:16.of the sinking commodity prices that you speak of. We know the price of
:09:17. > :09:20.iron ore has been falling due to China's weak trade performance,
:09:21. > :09:25.which, of course, has reduced its demand for iron ore which, of
:09:26. > :09:34.course, is used to make steel. Thank you very much.
:09:35. > :09:41.Ver ray shoulds is a good word for a Wednesday morning. Mining stocks
:09:42. > :09:45.slump to go a 11 year low. Copper, aluminium, platinum and iron and
:09:46. > :09:50.energy prices. Investors and traders are talking about this being a
:09:51. > :09:55.perfect storm of slowing Chinese demand and the resulting fall in
:09:56. > :09:59.commodity price. Yesterday Anglo slashed up to 85,000 workers. Others
:10:00. > :10:02.are likely to follow suit. So what has Europe done today? Well there,
:10:03. > :10:06.is the current state of play in Europe. Back in positive territory,
:10:07. > :10:09.but perhaps some profit taking after the falls yesterday, but it is
:10:10. > :10:11.probably going to be a pretty volatile end to the year. We will
:10:12. > :10:17.talk about that in a moment. Michelle has the
:10:18. > :10:28.details in New York. The cost of drugs comes under the
:10:29. > :10:32.microscope. Some have been under fire this year over rising drug
:10:33. > :10:34.prices with doctors, patients and lawmakers complaining the Senate's
:10:35. > :10:47.special committee on ageing is holding a hearing on the subject.
:10:48. > :10:53.The story of lulu has been a rocky one to product recalls and to the
:10:54. > :10:59.departure of its Chief Executive. It is likely to report profits for the
:11:00. > :11:04.third quarter. Have commodity prices hit rock
:11:05. > :11:08.bottom yet? That's the question oiling the US markets after a
:11:09. > :11:11.volatile few sessions. Will investors shake off their worries
:11:12. > :11:14.this Wednesday? Good on you, Michelle!
:11:15. > :11:22.Bronwyn Curtis from The Society of Business Economists.
:11:23. > :11:27.Let's start with commodities. We have been talking like you have
:11:28. > :11:34.until we are blue in the face about what is going to happen next week
:11:35. > :11:39.with the American Central Bank it is likely they will increase interest
:11:40. > :11:43.rates. I'm curious what that does to this commodity price? It makes it
:11:44. > :11:47.more expensive. We have been talking about this hike in rates from the
:11:48. > :11:53.Federal Reserve for so long, it must be priced in. I actually think that
:11:54. > :11:58.the dollar might fall if they hike. It is always by the rumour -- buy
:11:59. > :12:01.the rumour, sell the factment we have got to be careful here about
:12:02. > :12:06.saying they are going to do it. I know it is the first rate rise, if
:12:07. > :12:10.they do it since 2006 and it is the first turn in the cycle -- term in
:12:11. > :12:15.the cycle, but I'm not that concerned about it. I talked about
:12:16. > :12:19.this being the perfect storm, we know China and the Chinese economy
:12:20. > :12:22.is slowing and that's in large part responsible for the slumping inn
:12:23. > :12:27.commodity prices, but the two coming together and given the volatility or
:12:28. > :12:31.the unpredictability about US rates and eurozone action, all this
:12:32. > :12:35.uncertainty, markets are heating right now, aren't they? They are and
:12:36. > :12:39.they are nervous. We have not been here before in terms of a rate hike
:12:40. > :12:44.from the US after quantitative easing and so on, the ECB didn't do
:12:45. > :12:49.quite enough, China is slowing and when we talk about a super cycle in
:12:50. > :12:56.commodities, I can remember dare I say the last up cycle in commodities
:12:57. > :13:00.and always, super cycle upside and a long way down because it is a super
:13:01. > :13:03.cycle and as all the companies have raised a lot of debt, they are in
:13:04. > :13:07.trouble and that's going to be the problem and I think other companies
:13:08. > :13:12.will follow Anglo. Interesting stuff. Wow. Not good
:13:13. > :13:17.stuff. Not good stuff for the Australian company, but we don't
:13:18. > :13:20.have time to talk about that. You're going to come back and we're going
:13:21. > :13:24.to talk about the papers. Still to come: We'll be getting
:13:25. > :13:27.the inside track on the English Wine industry when we speak to the boss
:13:28. > :13:30.of the country's leading vineyard You're with Business
:13:31. > :13:40.Live from BBC News. Let's get more on that
:13:41. > :13:50.commodity price bust. The FTSE 350 mining index touched
:13:51. > :13:53.a ten year low yesterday so what does
:13:54. > :13:56.it mean for us? Simon Jack is in our
:13:57. > :13:58.Business Newsroom and if nothing else, Simon, no Santa
:13:59. > :14:16.rally this year? PROBLEM WITH
:14:17. > :14:21.SOUND Well, we would love to hear from Simon. Can you lip read,
:14:22. > :14:26.anybody We can get subtitles put along the bottom!
:14:27. > :14:29.The big slump in commodity prices is taking its toll. We have discussed
:14:30. > :14:33.already the issues related to the import and export and what it means
:14:34. > :14:39.for inflation. Inflation here in the UK at a pretty low level. Struggling
:14:40. > :14:45.to get above 0%. That's one affect. We've plug him in! OK. Sorry about
:14:46. > :14:51.that! Can you hear me now? Yes. Spare a thought for the North Sea,
:14:52. > :14:59.65,000 jobs gone there and in the supply chain, 5,000 jobs gone in the
:15:00. > :15:06.steel industry and jobs in Asset Management as Saudis pull funds and
:15:07. > :15:09.BHB bill tonne listed here. It might mean cheaper petrol, but there are
:15:10. > :15:11.big knock on effects elsewhere in the economy and we are feeling that
:15:12. > :15:14.at the moment. Simon, good stuff, thank you very much. Simon Jack
:15:15. > :15:23.there in our business newsroom. Is it possible to go from
:15:24. > :15:28.commodities to Christmas dinners? It is a commodity, food is a commodity.
:15:29. > :15:33.The cost of Christmas dinner is at its cheapest level since 2011. All
:15:34. > :15:37.of this is rated to the fact that all of the commodities that make up
:15:38. > :15:43.Christmas dinner are at record lows. Meat, potatoes. Not those things, I
:15:44. > :15:47.cannot stand them. Brussels sprouts, they are down as well. We have been
:15:48. > :15:54.asking you, what is Christmas dinner for you? James, good on you, with
:15:55. > :15:59.competitive prices on luxury finger food, that is what I am looking at,
:16:00. > :16:06.he says. I love that of finger food! It is great, love it! I have ordered
:16:07. > :16:07.a takeaway for my family Christmas dinner, my local Indian. This one.
:16:08. > :16:24.Just for people like me, she says. You are watching business life, the
:16:25. > :16:30.new rules to ban deer blocking across the European Union, that is
:16:31. > :16:39.where you can stream media in one country but you cannot do it
:16:40. > :16:45.elsewhere. -- geoblocking. Good news if you are consuming, not if you're
:16:46. > :16:47.a media provider. It was not even there in the script.
:16:48. > :16:50.Now, if you're buying in the booze ahead of the festive season,
:16:51. > :16:55.Perhaps not your first choice, but it's slowly and steadily gaining
:16:56. > :16:58.a loyal following around the world, and beats many top French champagnes
:16:59. > :17:04.Chapel Down is England's leading vineyard and has produced
:17:05. > :17:11.Under the leadership of Frazer Thompson, Chapel Wines has
:17:12. > :17:14.become the largest profitable wine company in the UK,
:17:15. > :17:16.driving demand for English wines in places as far afield
:17:17. > :17:25.This has driven sales up by 33% year on year, to $4.9m.
:17:26. > :17:29.And last year, the firm completed a crowd funding campaign,
:17:30. > :17:32.raising $6m and attracting over 1,400 new shareholders.
:17:33. > :17:55.Welcome to the programme. I am just going to make an excuse for Aaron! I
:17:56. > :18:00.will be very careful! We have talked about this on our shows, this
:18:01. > :18:06.explosion in English wine, sparkling wine, why, over the last few years,
:18:07. > :18:16.all of a sudden... ? There has been an explosion in sparkling Rhine, per
:18:17. > :18:19.second, we have all got little moments to separate. Mini fist bump
:18:20. > :18:27.moments, what is a good way to celebrate? We think champagne has
:18:28. > :18:35.moved on, something that can make any occasion special. That is hardly
:18:36. > :18:39.the right glass! I am so sorry! This is a perfect product to celebrate,
:18:40. > :18:44.it is great and different and original. What makes English wine
:18:45. > :18:49.different? What is it about an English great, and English vintage,
:18:50. > :18:55.that makes it so different from the French champagne that we have known
:18:56. > :18:59.and loved? The first thing is the similarity to the land it is grown
:19:00. > :19:06.on. The first thing you see in England is the white cliffs of
:19:07. > :19:11.Dover, the chalk, that gives a great sparkling wine. That gives it a
:19:12. > :19:15.great acidic and mineral content. We have got the land and the know-how,
:19:16. > :19:22.we consume a lot of champagne in this country. We are, how Ray! The
:19:23. > :19:28.biggest consumers of champagne outside France. We love champagne
:19:29. > :19:34.and we love sparkling wine, it is -- sparkling wine, it is clean and
:19:35. > :19:40.refreshing and it is for a seller brochure. That is not just me saying
:19:41. > :19:46.it, it is international juries. What is the market? Is it baby steps in
:19:47. > :19:52.getting that mentality right? Baby steps is right. You have got to move
:19:53. > :19:57.very slowly. And we are the biggest country in the water champagne.
:19:58. > :20:00.That's regretting the world. Get it right in the UK and then start
:20:01. > :20:08.exporting, Japan, China and Hong Kong, who are starting to get
:20:09. > :20:11.interested. You have had passed in big business and then you joined
:20:12. > :20:16.Chapel Down, and you have got a great story about a photocopier? I
:20:17. > :20:22.used to be a brand director for Heineken, I was sent to a lot of
:20:23. > :20:26.places, they teach you cash is king, but they do not tell you what
:20:27. > :20:32.happens when the cash runs out. When I joined Chapel Down, four days
:20:33. > :20:37.later, they came to repossess the photocopier. That is the consequence
:20:38. > :20:41.of cash flow! From that perceived failure, they repossess the
:20:42. > :20:47.photocopier, how do you start to build the business up again, get the
:20:48. > :20:51.cash coming in, get the sales through? You talk about
:20:52. > :20:56.crowdfunding, that is a great way of getting cash, but also customers.
:20:57. > :21:04.Absolutely right, you have got to do business on a sound footing, wine is
:21:05. > :21:11.a cash generating business, but beer is not. For example. The first round
:21:12. > :21:15.of grant funding, we had 1400 new investors who were as passionate
:21:16. > :21:21.about what we were doing as I was. It is like having mini mes on Biddy
:21:22. > :21:23.tables all around the country -- the dinner tables around the country
:21:24. > :21:28.boring people about how good English wine is. Beer is now a hugely
:21:29. > :21:32.interesting market at the moment, craft beer is booming for the very
:21:33. > :21:38.reason that we have seen this enormous merger going on, 30% of the
:21:39. > :21:42.world in one company, and we are seeing passion and taste coming
:21:43. > :21:50.through in smaller craft beers. We are in that market as well. We do
:21:51. > :21:58.have to run it up, time is short on the programme. Royal wedding...?
:21:59. > :22:04.Allegedly! Allegedly this was consumed by the guests at the Royal
:22:05. > :22:11.wedding. Allegedly, allegedly! Cheers to that. It was a pleasure to
:22:12. > :22:19.have you here. Allegedly! We do not have this in our Coffey mucks every
:22:20. > :22:28.morning! -- Coffey mucks. Speak for yourself! What you do if you have an
:22:29. > :22:34.airport, three, in Malaysia. They have said, if you do not come and
:22:35. > :22:41.collect your airline within 14 days, which have been abandoned at the
:22:42. > :22:49.airport. A 747. Three of them! I knew I had parked it somewhere! You
:22:50. > :22:56.might lose your phone or keys. These are old planes, these are 747 200,
:22:57. > :23:00.but very fuel-efficient. -- not very fuel-efficient. It costs too much to
:23:01. > :23:04.get rid of them. Now, can you have a sport
:23:05. > :23:07.which involves no more effort The industry now refers
:23:08. > :23:12.to video gaming as eSports, and there's serious
:23:13. > :23:13.money to be made. It's widely accepted
:23:14. > :23:19.as a paying occupation. It's not, like, you play
:23:20. > :23:21.games for a living? It's actually just, wow,
:23:22. > :23:26.you play games for a living. You can earn half a million dollars
:23:27. > :23:29.per year just playing LoL. The top player in Korea
:23:30. > :23:32.was offered $1 million in China But he refused, saying,
:23:33. > :23:43.I want to represent Korea. Bronwyn Curtis from The Society
:23:44. > :23:52.of Business Economists joins us. We have not had much more champagne
:23:53. > :24:01.in that break, although we are struggling to get our words out. You
:24:02. > :24:06.have had no booze! Let's talk about Yahoo, they are not going to sell
:24:07. > :24:11.off the stake in Ali baba, just their core business. I thought it
:24:12. > :24:17.was always going to do that. It was going to sell-off Ali baba at one
:24:18. > :24:27.point. I think the interesting thing about this story is that it is the
:24:28. > :24:36.Ali Baba that they want, people, they buy Yahoo to get into Ali Baba.
:24:37. > :24:40.Core business being sold off is not such a big deal, they have the
:24:41. > :24:44.biggest reach in the US but they have not managed to monetise it.
:24:45. > :24:54.They are putting it up for sale. The rise bought AOL, 4.4 billion
:24:55. > :25:01.dollars. -- Verizon bought AOL. Let's talk about the sharing
:25:02. > :25:05.economy, this story talking about them burning through their cash
:25:06. > :25:10.pile, this is the way the business is, they have got to spend money
:25:11. > :25:14.upfront to get customers in before they get any revenue so they are all
:25:15. > :25:18.making a revenue at -- loss at the moment but they need repeat
:25:19. > :25:22.bookings. That is how they make cash. It takes time, you need
:25:23. > :25:28.customers not just a comeback once but twice, ten times, 20 times, you
:25:29. > :25:34.have to get the return custom. We have Uber, who raised $10 billion.
:25:35. > :25:40.They are worth, apparently, $50 billion. You go down GM or Ford.
:25:41. > :25:48.Bigger than Delta airlines which has more than 1000 aircraft. But losing
:25:49. > :25:55.millions and millions every day. It is the same with AirB They
:25:56. > :25:58.expected to make a loss of 150 million this year. It is getting the
:25:59. > :26:02.return custom is getting the brand going. Thank you very much. We will
:26:03. > :26:05.see you soon. Cheers!