11/12/2015 BBC Business Live


11/12/2015

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This is business live from BBC News. Reaching a deal, as the climate

:00:11.:00:19.

change summit comes to a close. The questions live from London.

:00:20.:00:43.

Poor nations says their wealthier counterparts are not doing enough to

:00:44.:00:49.

combat climate change. As a deal nears, the devil is in the detail.

:00:50.:00:55.

Also, China's answer to Warren Buffett goes missing. Also we will

:00:56.:01:10.

take a quick look at the markets. And we will be speaking to the one

:01:11.:01:17.

and only Rory Cellan-Jones as he unravels what exactly is going on at

:01:18.:01:26.

Yahoo. Also he explains why the tech behind bitcoin could change the

:01:27.:01:30.

world of banking for ever. Plus, should it be Heathrow or Gatwick

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which gets that extra runway? The debate which has been raging for 25

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years here in Britain. And now the decision has been delayed for

:01:42.:01:44.

another six months. What do you think? Does London need an extra

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runway? If so, where should it go? Let us know.

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A warm welcome to the programme. Over the last two weeks, Paris has

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played host to a Who's Who of politicians, industry experts and

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senior figures from every conceivable industry. As the climate

:02:11.:02:15.

change summit draws to a close, has anything been achieved? Will we hear

:02:16.:02:19.

word of the first new deal in 18 years? It was never going to be

:02:20.:02:24.

easy. But in an attempt to break the stalemate, the Obama administration

:02:25.:02:29.

has pledged 860 million US dollars to help poor countries deal with

:02:30.:02:33.

heat waves and storms which experts believe are the result of rising

:02:34.:02:36.

global temperatures. Even that might not be enough according to Laurent

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Fabius, the French Foreign Minister. He says there are still free big

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stumbling blocks to any deal. First, we still do not have any sense of

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how much or what exactly the rich nations will commit to. Poorer

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cousins are after public grants of about $100 billion by 2020. The

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response from the rich? The private sector could pick up the tab.

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Second, where do we set the goalposts? The developed nations say

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the target of 2 degrees should be made tougher. Experts question

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weather this is possible at all. And lastly, who should take the lead,

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the polluters of today all the polluters of tomorrow? Roger

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Harrabin, the BBC environmental analyst, joins us now. Can we start

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with some of this money which has been pledged by the Obama

:03:31.:03:36.

administration and others, which they have coughed up for the poorer

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nations, which is to pay for the damage which has already been

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caused. But I want to talk about the money which is needed, and who pays

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for it, to get the developing nations not to use so much

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traditional energy at to use sustainable energy? I have to say we

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are closing in on a deal here. We do not have a deal yet and a lot of

:04:00.:04:03.

things could still go wrong. The conference has been pushed into an

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extra day, which is knows the price. These conferences are really tough.

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It is on a knife edge. We have a text but we do not know which way

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that text will go. In answer to your question, one breakthrough has been

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made on cash. The developing nations are saying, you rich nations got

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rich by polluting. If you want us to get rich by not polluting you have

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got to help us get that clean energy and adapt to climate changes which

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are already happening. The vulnerable nations in this current

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text have won the day in the sense that there is now a clear funding

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stream post-2020 one a minimum of $100 billion per year. Not quite

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clear where it is going to come from. The developing countries say

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it is still not enough, but there is movement. It may seem like a bit of

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a silly question but I know people are thinking about it at around the

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world - how does the group here determine the poorer nations or the

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developing nations which should get some of this money? Are we talking

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India and Pakistan for example? They have nuclear weapons programmes,

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India has a space agency... This is a really difficult question. And not

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a stupid question at all. The Saudis the other day, who are generally

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seen as being blockers in these talks, employ some very, very smart

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lawyers. One of these lawyers said exactly that. Who is going to decide

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who is rich or poor? It is a really interesting question which is not

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yet resolved. They are trying to reshape the world order. We are

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trying to get big developing countries, big emerging economies

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who are becoming major polluters themselves. The USA is trying to get

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those countries to take more responsibility for curbing emissions

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and also for helping other developing countries. This reshaping

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of the world order is creaking and tugging at the moment. We are not

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there yet but your question is a very good one. Roger, I hope I have

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a good question for you as well! Sorry about that, Victoria! I wonder

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about this kind of binary assumption of the poor and the rich - we also

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have this discussion about the 2 degrees target as well. It is not as

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though we are going to see planetary do if we fall off one edge of that

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and everything is fine if we are the other, so how realistic is this 2

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degrees target? Firstly, all these numbers are best estimates by

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scientists. We cannot say if we hit a certain amount of emissions, we

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get a certain amount of temperature rise. It is far too complicated for

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that. So they are best estimates. But there has been another win in

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this text for the most honourable countries, who say that two Celsius

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is too much for them. We have already had a rise of one Celsius on

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preindustrial levels and they are experiencing extreme weather

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already. They are not willing for the temperature to rise more than

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1.5 Celsius. The new text, which has not yet been signed off, says, at

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least to Celsius, heading towards 1.5 Celsius. That is something of a

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ground-breaking moment for the developing countries and it has

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implications for people, countries, businesses everywhere. If we go on

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the path of decarbonising by the end of the century, then it forces

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businesses to look in the future away from coal and oil and gas and

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towards renewables. It is momentous stuff which is happening here, if

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indeed it does happen. Good on you, Roger. Tell them to

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hurry up! Let's touch on some of the other stories making headlines

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around the world. Of officials have shutdown a Mexican Grill restaurant

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in Seattle. Why are we doing this?! After finding repeated food safety

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violations. This is according to a statement from the Seattle public

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health department. The restaurant is one of 17 in the county which

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reopened last month just after passing inspections following an E.

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Coli outbreak. Ford's plans to invest an additional $4 billion in

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programmes to broaden its offerings of hybrids and electric vehicles...

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It's CEO said the new version would be available next year. It would

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have a 100 mile range and will be able to recharge in just 30 minutes.

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The company says about 40% of its lines will be electrified by 2020.

:08:59.:09:04.

The Indian Premier League is to Japanese counterpart will be meeting

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for the fourth time in just over a month. -- the Indian Prime Minister.

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They are going to agreed deals for Japan to build India's first High

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Speed Rail network. We are talking a Bullet train. When you think of

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trains and you think of India, you see the people hanging onto the

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site. You don't want to do that on a Bullet train! Let's have a quick

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look at what is breaking and trending on our page on the website.

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You have got the tablet! I think we are going to be looking at South

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Africa and what is going on with the politics. Jacob Zuma, the big boss,

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ousted the finance minister yesterday. No explanation. He

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installed somebody else. A relatively unknown former mayor. It

:10:00.:10:04.

is quite interesting. The impact has been felt on the Rand. For a long

:10:05.:10:12.

time, South Africa has managed to extricate itself from the problems

:10:13.:10:17.

facing the rest of Africa, with the politics and economics being tightly

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entwined. Normally in South Africa we get the Treasury and the South

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African reserve bank being quite separate. But this move means that

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that is now under threat. We will see next week if the US-led raises

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interest rates, and what that might have as an impact on some of these

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emergency economies. Over in Asia there is one big story hitting the

:10:46.:11:00.

press. China's richest man... Sorry! Is this China's Warren Buffett. It

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is a mysterious story. Tell the world what is going on. Well, it is

:11:06.:11:11.

very mysterious, Aaron, and it is surrounding the uncertainty over the

:11:12.:11:14.

whereabouts of one of China's richest men, the billionaire founder

:11:15.:11:22.

of a massive group. Reports emerged on Thursday that he could not be

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reached. And then on Friday, his company, Fosun international, asked

:11:28.:11:31.

the Hong Kong stock exchange to suspend training in the shares of

:11:32.:11:42.

the company. We have to be clear, we do not know weather or not he has

:11:43.:11:47.

actually disappeared. But other high-profile executives in the

:11:48.:11:52.

financial sector in China have gone missing in recent weeks. There has

:11:53.:11:56.

been some speculation that this is part of the wider anti-corruption

:11:57.:12:00.

campaign launched by Beijing, which has seen dozens of business

:12:01.:12:03.

executives detained and questioned. Some of them actually come out of

:12:04.:12:09.

that questioning having aided the authorities and they do emerge from

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their mysterious disappearances. If this is confirmed it would be very

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big news indeed. And you can see it being reflected on the markets, with

:12:21.:12:26.

investors looking at this news with some caution. Back in on the markets

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to see what is going on. In Asia, shares are set for sizeable weekly

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losses. The plunging crude oil price and the tumble in China's currency

:12:38.:12:46.

are having their effect. It is adding to concerns about receding

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global growth. Europe has opened for business. This is how things are

:12:52.:12:55.

looking. Not a huge amount of movement at the moment. Over to the

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US to find out what is going to be making the headlines in Business

:13:02.:13:06.

World Today. US retail sales figures on Friday are expected to show a

:13:07.:13:10.

pick-up in November. It looks like car sales in particular were strong.

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Economists predict that a report from the university of a jig will

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show consumers are feeling better about the economy in December,

:13:19.:13:23.

helped in part by cheap gasoline prices. The producer Price index

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will likely show a 1.4% drop in prices charged by manufacturers in

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November. That would be the 10th straight decrease in prices reported

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by the index, pointing to lower inflation. With lower oil prices, we

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will get a look on the latest figures on the number of drilling

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rigs actively exploring for oil or gas in the United States. Richard,

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great to have you with us. The FTSE in particular, six days of... Yes,

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six days of that! The much mooted rally which we were talking about at

:14:08.:14:10.

the start of the month has not appeared. It has been a pretty

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miserable week. Is this a moderate ease? It is mainly commodities.

:14:16.:14:20.

Anglo-American down 17% on the week. BHP Billiton down 6%. But the

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FTSE-100 is down almost 4% on the month. That is a big fall. It is

:14:27.:14:30.

pretty miserable. And it looks like it will be another miserable

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day-to-day. And we have got the Russian central back decision coming

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up in just under two hours. It is very difficult there to separate the

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politics and the can mix question mark -- and economics? Yes, and we

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have also seen food inflation, the sanctions taken against Turkey, and

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we have also seen the rouble falling ahead of the possible Fed rate cut

:15:01.:15:04.

next week. That is also driving inflation. So it looks like we may

:15:05.:15:13.

not see a rate cut now. Yes, Russia have banned foodstuffs from certain

:15:14.:15:17.

parts of Europe and from Turkey which is having an impact, so

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experts tell us. The big problem is that Russia needs to balance its

:15:22.:15:27.

books around ?120 a barrel of oil at the moment, which is less than 40 at

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the moment. Absolutely and some economies do win from low oil prices

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and others really lose and Russia is one of those that really loses. You

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will come back to take us to the papers, some good stories.

:15:43.:15:47.

Our technology editor Rory Cellan Jones is

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waiting in the wings - ready to run through

:15:51.:15:52.

Whether Marissa Mayer will be able to hold onto the top slot at Yahoo.

:15:53.:16:05.

You're with Business Live from BBC News.

:16:06.:16:13.

OK - let's take a look at some of the stories from around the UK.

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The government's been criticised for delaying a decision on airport

:16:21.:16:23.

expansion in the south-east of England until next summer.

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Ministers said they wanted a further review of the environmental impacts

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of the rival schemes at Heathrow and Gatwick.

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Business groups and airlines have reacted angrily,

:16:38.:16:39.

warning that the uncertainty over Britain's aviation future could cost

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Labour claimed the postponement is for political reasons rather

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Lets leave the politics of the decision aside for a few

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minutes and talk a little about the actual building

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of the runway whenever, and whenever, a decision is made.

:16:58.:17:01.

Joining us is Robbie Owen, Planning and Infrastructure partner

:17:02.:17:04.

Welcome to the programme, in terms of infrastructure and in terms of

:17:05.:17:17.

the easiest place to build and put another runway is it Heathrow or

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Gatwick? I think it is Heathrow because it is not just what is

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obvious, it is what is the best solution for Britain, what brings

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the most benefit and makes the most sense strategically. That is

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definitely the scheme by Heathrow Airport for a north-west runway. Is

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the argument here, I like habit of aviation, I follow it closely, some

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people will say that it's the second busiest airport in the number of

:17:49.:17:52.

passengers, there are mid-sized German airports with and four

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runways. We are a small island. This has been looked at by the airport

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commission. And this is the government interim response. It has

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been looked at carefully over three years with a lot of consultation and

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consideration by experts and this was the considered view that

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Heathrow is a clear winner of the three short listed schemes. We

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appreciate, short and sweet, but we have your answer, Heathrow it is for

:18:23.:18:28.

you. Lipstick quick look at this story, a downgrade for the UK

:18:29.:18:32.

economy coming from the Institute of chartered accountants. This is all

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to do with slowdown in China, weak growth in Europe and it is hitting

:18:41.:18:41.

business confidence. I did not realise we were back!

:18:42.:19:00.

Let's talk technology. Rory is here. Can we get stuck into it? There we

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go. I'm amazed by the performance this morning. Yahoo, a massive

:19:07.:19:14.

U-turn, no direction for the Internet part of it, what's going

:19:15.:19:20.

on? One of the biggest names on the Internet, one of the great companies

:19:21.:19:28.

that rose in the 1990s. In 1995, Surrey, 2005, it bought a stake in a

:19:29.:19:34.

Chinese company for $1 billion and now that state is huge, it is worth

:19:35.:19:42.

30 times more. You have an Internet company, a tiny Internet business

:19:43.:19:44.

with a giant stake in the Chinese retail company that is dominating

:19:45.:19:51.

the business. It was going to spin it off but now it has looked at that

:19:52.:19:58.

and the boss has said it's too complicated. All sorts of tax

:19:59.:20:03.

implications would make it too difficult. Instead we will spin of

:20:04.:20:08.

the Internet business which brings the focus back to what an effigy has

:20:09.:20:12.

been doing during her time in charge? She became as the great

:20:13.:20:16.

saviour, one of the most powerful women in silicon valley on a huge

:20:17.:20:19.

salary and people are asking what her strategy is. That being said,

:20:20.:20:25.

let's look at her, three years ago she took over as boss. If you bought

:20:26.:20:30.

shares the day she came inside back and help them your shears would have

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more than doubled in value. She's made a lot of people very rich. If

:20:35.:20:39.

you look at most companies, and said that would be the performance, most

:20:40.:20:43.

people would be happy, so why is she having such a tough time with

:20:44.:20:50.

investors? They see that story as played out and what is coming next?

:20:51.:20:57.

What is the strategy? She does not appear yet to have found a recipe

:20:58.:21:01.

for turning round the court Internet business. Interesting commentary

:21:02.:21:05.

this week to say it is crazy that you think you can just bring in a

:21:06.:21:08.

Steve jobs type figure and have that type of turnaround, it would be

:21:09.:21:13.

better having someone quietly managing the thing and ticking over.

:21:14.:21:30.

We want to talk about that Bitcoin. Digital currency, incredibly

:21:31.:21:33.

fashionable but people think it could be dangerous and it is very

:21:34.:21:37.

volatile, price going up and down. What people are focusing on is the

:21:38.:21:49.

technology behind it. Blockchain. It's like an old journal that you

:21:50.:21:53.

would keep everything in writing, put that in the 21st century and put

:21:54.:21:57.

it online and make it available and visible around the world and have no

:21:58.:22:01.

centralised authority and what the big banks have done this week,

:22:02.:22:04.

Goldman Sachs and a number of other major banks, is invest in a

:22:05.:22:09.

technology firm which will look at ways of using that blockchain more

:22:10.:22:15.

widely across the banking industry. I have heard people describe this as

:22:16.:22:19.

more important than the Internet itself, the blockchain. I am still

:22:20.:22:24.

getting my head around exactly why it will transform everything but

:22:25.:22:26.

there are a lot of people very excited about it. Fascinating,

:22:27.:22:33.

Goldman Sachs think it is a winner. They could be disrupted so they want

:22:34.:22:38.

to do the disrupting first. Happy Friday, have a great weekend. In a

:22:39.:22:47.

moment we will take a look through the business pages but first a

:22:48.:22:49.

reminder of how to get in touch. What are the business stories the

:22:50.:23:31.

media have been interested in? Richard Fletcher is back, let's

:23:32.:23:36.

start with a story on your front page, British Airways threat to

:23:37.:23:41.

abandon Heathrow, tell us more? Businesses are angry about the

:23:42.:23:45.

indecision by the government but they are also angry, this is a

:23:46.:23:49.

complicated issue, will he Walsh is angry about the fact he will have

:23:50.:23:55.

two paper the expansion upfront -- will he Walsh is angry about the

:23:56.:23:58.

fact he will have to pay for the expansion upfront. It's another

:23:59.:24:02.

example of what a complex issue this is, although business is very angry

:24:03.:24:09.

about the lack of action by the government they do desperately want

:24:10.:24:14.

a new runway, a lot of disputes about where it should be, who should

:24:15.:24:20.

pay for it, it's a compensated issue. It's a combo give it issue,

:24:21.:24:25.

we are making it complicated. It is not, located in China or the gulf

:24:26.:24:29.

states or other part of Europe that we are trying to compete with,

:24:30.:24:33.

Britain is losing out economic life. Absolutely which is why we sought

:24:34.:24:38.

such anger yesterday, the CBI describing the primaries as gutless

:24:39.:24:44.

-- the Prime Minister as gutless and that we need to just get on and

:24:45.:24:48.

build the runway. There are fears we could run out of capacity by 2025.

:24:49.:25:08.

Can we talk about to? Some serious initiatives, they are trying to

:25:09.:25:11.

encourage water companies to use the waste product, let's put it that

:25:12.:25:17.

way, they are left with once they have cleaned up the sewage. The idea

:25:18.:25:22.

is you can generate energy which you then sell back to the National Grid.

:25:23.:25:27.

And there is a further waste products you would give to farmers

:25:28.:25:32.

to scatter on the fields. It's a cracking idea really. They do it in

:25:33.:25:36.

Africa. The burn it. Great stuff, I don't agree have time

:25:37.:25:58.

for the next one. That's it from business alive, plenty more business

:25:59.:26:02.

news throughout the day on the website and world business report --

:26:03.:26:03.

business live. Quite a contrast from north to south

:26:04.:26:14.

across the UK today,

:26:15.:26:15.

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