24/02/2016 BBC Business Live


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Hello, this is Breakfast with Charlie Stayt and Louise


It is the super exchange, as London and the German stock exchanges


announce new marriage plans we ask for their make it to the altar this


time. Fly from London that is our top story today.


Third time lucky, a British German marriage may be on the cards as the


200-year-old stock exchange announces plans to try to merge


again. Europe's biggest playmaker cuts production of one of its jets


as profit and revenue takes off. The markets have opened, boil down we


will tell you why. We have more on the referendum, today we look at


Norway. What do the Norwegians think about this and does it work? As


ever, do get in the conversations. Welcome to the programme, let's


start with the top story. Finally, could a British German


marriage be on the cards? Whoever is sitting on a autocue was


you wake up because we are going to talk about the British and German


marriage of the stock exchange. After many failed tie-up attempts,


the 215-year-old London Stock Exchange Group


and Germany's Deutsche Borse are in talks over what the LSE calls


a "merger of equals". The move that would create


a European industry champion and one of the world's largest


exchanges for trading To thrive on a global stage,


you need to be a Super Exchange to compete with rivals CME Group


and Intercontinental Exchange in the US and in Asia,


Hong Kong Exchanges and Clearing. But it's been a painful


history of tie-up attempts. LSE and Deutsche Borse have tried


to tie the knot twice before in 2000 The LSE has also fought off bids


from the high-tech Nasdaq exchange. Simon Griffiths, Partner,


at the lawyers Irwin Mitchell As Aaron stipulated, these two have


tried to team up before and not succeeded so what is different about


this time from what we know at least? Last time was a long time ago


and yesterday the announcement was forced on the London stock exchange,


they didn't want to make it. Explain why. There was an upward movement in


share price and our UK rules then required company to make an


announcement. They made the announcement, they are trying to get


together again, just focus through previously it was some time ago,


they overcame some hurdles they hit last time? Who knows. There are


competition hurdles and there are other bids, nobody can say there are


more chances this time, this time we have the uncertainty of the breaks


it -- brexit. This may have something to do with the fact that


brexit is a possibility in four months' time. Why do they need to


merge to form this super exchange? Its London after all. It is simply


economies of scale. If you put the two businesses together you will


make more money and make more money for shareholders. It is interesting


because we think of the London stock exchange as a British institution as


the same way that the dodger boyish is German but both organisations are


international in terms of ownership of shares, it is not so much London.


-- Deutsche Borse. It is so about data technology, the stock exchange


produces a quarter of the revenue, it is intellectual property for


which it derives most of profits. It is a global business and by putting


together they become more powerful. We appreciate your input on this


story and Simon inferred, there is a long way to go so we will usually


touch on every twist and turn. Airbus has released


its results for 2015. Europe's largest airline


manufacturer saw profits last year Last month the aerospace giant


revealed that they delivered a record number of planes in 2015


but failed to de-throne Boeing as the world's biggest


aircraft manufacturer. Airbus hopes to deliver more


than 650 planes this year, with the wide-body A350 expected


to help it close the gap. They have to deliver the planes


before they get the money, very important.


Brazilian authorities have charged the former president of mining


company Samarco and six others with homicide for the mining


disaster that killed 19 people last November.


Samarco is owned by Brazil's Vale and mining giant BHP Billiton


and on Tuesday police presented the first official report


The report concluded that the accident was caused


by excess water in the dam, lack of proper monitoring,


faulty equipment and failure in the drainage system.


JP Morgan will set aside an additional $500m to cover


potential losses from its exposure to the oil and gas sector.


The increase is more than 60% of the funds the bank had


The announcement contrasts with the banks assertion in January


that oil companies were "surprisingly resilient".


Johnson and Johnson, it was ordered by a Missouri state in the the US,


that was to the family of a woman who ovarian cancer was linked to use


of the baby powder and shower the shower for several decades she used


it for many years. I say talcum powder can cause cancer? That is


what the conclusion so they have been ordered to pay $72 million in


damages. This was a lance late Monday but is hitting the wires


today, an interesting scenario. 10 million of damages and 62 to


punitive damages. It's a key economic


indicator of the region - so when Singapore releases


its latest growth numbers economists take notice and today's


news isn't good. It's economy grew by 2% in 2015,


it's slowest rate of growth Leisha Chi, Business Reporter


is in Singapore... I like living here. The figures were


not good but better than expected. It expanded by 2% last year but that


is the slowest since 2009, compare that to 3.3% in 2014. It looks like


low growth will be the new norm for Singapore. Economists expect 1-2% in


the years ahead. Which actually is very similar to other advanced


economies. Singapore has been very reliant on trade but that also has


made it incredibly vulnerable to swings in global demand and recently


we have seen a drop in manner factoring output as well as a steep


plunge in exports which is because of slowing growth in China which is


one of the biggest markets. This has been somewhat offset by a growth in


services in the construction sector, services like the casinos and the


government is really have to push ahead with an economic restructuring


so what they will do is focus more on ideas and will turn Singapore


into a high-end research help. Great stuff, stay out of the casinos.


Asian stocks were mostly lower on Wednesday, tracking declines


on Wall Street as crude oil extended losses after Saudi Arabia ruled out


freezing production, saying market forces should be


Oil dropped 4% - now hovering around $30.


Just adding to the global worries, those Singapore numbers -


Both slowing last year predicting continued weakness this year.


Europe - a steady open after those sharp losses yesterday -


today's focus more on company results.


But let's turn our attention to the biz-buz on the other


side of the Atlantic - here she is Michelle Fleury.


Remember when HP split into two companies, the business that houses


the PC and printer operations is set to report its first set of earnings


this Wednesday. The stock has fallen since the spin of an analysts aren't


too cheerful about its prospects given the gloomy outlook for the PC


market. Also weak commodity prices continue to cast a chill on


earnings, oil and gas producing energy are producing a loss in the


fourth quarter, compared to a profit of the year ago, investors want to


know what the company would do to reduce the high debt level around


eight times the market value. The plunge in crude oil is also forecast


to weigh heavily on North Dakota's consonantal resources when its


report its fourth-quarter results. Thank you to Michelle.


Joining us is Jeremy Stretch, head of currency strategy at CIBC


Same sorts of issues but one slightly newer, the oil price


slipped and the pound has sunk? Indeed it has, the sterling is under


pressure. Wizards sided through the 140 barrier, the first time since


around March 2009 so further negativity playing out in terms of


the standings this -- the sterling perspective. The whole brexit being


crystallised into the upcoming vote so there is concern about foreign


investment impact and stalling foreign investment and the questions


about what that implies for the UK. Investors are saying we don't want


to be involved in the sterling at this juncture and have been stepping


away. Not good for another soulless going on holiday. -- for those of us


going. Last week we had the meeting in Doha are in Qatar, the Isa will


freeze the production in January level if everybody will do it, we


knew back then that not everyone was so Saudi making it clear they will


keep playing this game if you will call it a game. If we go back to


November, December 2014 when the Saudis said they would not cut


production, that crystallised the downtrodden victory of the oil price


which has continued. The question is why would they change of tack at


this edition. You could argue it is hurting them financially, we saw


this reflected in their budget, austerity is now ongoing so the pain


is hitting them, but by taking that amount of pain why would they change


strategy? Especially with Iranian oil coming back, they'll not wanting


to cede market share to arrive so they will continue and freezing


production is one thing and cutting production is another thing. Being


Wednesday this is the day when we get the weekly oil numbers in the US


and once again we are expecting to see those infantry is to build, a


glut of oil beginning to accumulate and according to that it'll keep the


oil price under some degree of pressure. Not enough storage


nowadays, that is the problem. It is one of those classic things, if you


have an asset which you think will appreciate them you may want to


store it but as you say, it is becoming more of an issue. I can


hear new businesses starting as we speak. You are coming back to take


us through the papers. As we kick of our special series


on Britain's EU referendum journey, we hear from Norway -


a country that's outside but paying for the privilage


of trading with the EU. You're with Business


Live from BBC News. The UK is on the verge of a flexible


working tipping point - when working away from the office


is becoming more common Let's get more from Ben Thompson,


who's in central London. We are also in central London, but


he's clearly not in the studio. Tell us more about this, people avoiding


the commute, but does working at home really work? Good morning,


welcome to my brilliant vantage point here in central London. It


seems that more and more of us are ditching the commute into the city


centre up and down the country, and instead choosing to work from home.


4.2 million of us now do that. 1.8 million more would like to if their


employer was a little bit more flexible. Some advantages with it,


some disadvantages. It seems that more of us are avoiding those long


commutes. The average commute in London is 1.25 hours to get to the


office. You can see why many people simply don't want to do it. Then it


is with me, he runs his own marketing them from home. Told me


through the advantages. What is it that made you decide that you would


run your home from your kitchen table? You pointed at the first


thing, cutting down on the commute. That hour and a quarter that people


spend commuting to the office and back again, it can be spent more


productively, getting on with work or preparing yourself for the day,


or generally just a better use of time. Also cuts down on costs, to


come because you don't have to pay for an office space and get caught


up in longer contracts. We're much more flexible. As a relatively new


at them, it is more attractive for us to work from home. Good luck with


the firm. It cuts a lot of costs, a lot of time, but it also comes with


some disadvantages. There is none of that face-to-face interaction, none


of that quick chat over coffee in the office, which is often sometimes


when the best ideas are created. One statistic that caught my attention


this morning is that we spend 10,600 hours commuting over the life of an


average person when it comes to work. That is over a year of your


working life spent on a train or stuck in a car. Worth thinking about


during your commute this morning. Big Ben and little Ben in central


London. I am talking about you and the fellow next to you.


More about the UK economy, Barrett profits are headed higher. About


40%. Our top story - third time lucky


for a marriage between the two hundred-year-old London Stock


Exchange and Germany's Deutsche As the UK prepares for a June


referendum on whether to leave the European Union, so voters


and investors are looking at what other options could be


on the table if an exit vote won. As part of our special series


on the EU refereundum, we go to Norway, a European nation


that's not part of the EU. It has a unique trade


deal with the block. So is this a good deal


for the people of Norway? The BBC's special correspondent


Allan Little went to find out. The water is the border between


Sweden and Norway, the edge of the European Union. You can drive


straight across it without even noticing. When you cross this


bridge, you are leaving the EU, but you don't have to show your


passport. There is nobody to show it to, even if you wanted to.


Norway may not be in the EU, but it is part of an area which means


anyone can come from the EU and live and work here. 16% of Norway's


population are migrants and they are entitled to the same welfare


benefits as Norwegians. Norwegians rejected EU membership in


referendums in 1972 and 1994. We had a lot of scaremongering, losing


jobs. They said we will lose 100,000 jobs by standing outside the EU, but


every single day since has shown this was false. Industries here have


been a success and we sell our goods to a lot of countries. Nothing


expresses Norway's Independence character more eloquently than its


relationship with the sea. Norwegians have sought to protect


their fisheries from EU competition after oil and gas, this is the


country's last battled against industry. But staying out of the EU


means this salmon processing company has to pay a tariff to sell its


products in EU countries. We have turrets on smoked salmon. It's only


things that is a price worth paying. I have been very constant in my


belief that we should stay outside. It is like saying, you know what you


have, but you don't know what you get. I live by that. But the world


is changing around Norway. Despite its global reputation for quality


and efficiency, Norway is facing growing competition from Poland.


Similar fish products can be made their more cheaply, and sold without


import tariffs. Here at Norway's parliament, the political elite,


unlike the people, have tended to favour EU membership. Most of the


laws and directives issued by Brussels get ratified by this


parliament anyway. Norway has to fall in line with EU law, even


though it is not allowed in the room when that law is made. Politicians


here call that integration without representation. One foreign policy


analyst here told me that every chicken, pig and fish in Norway is a


member of the EU, they just don't know it. We are closely integrated


into the markets, but we have lost part of the serenity through the


regulations. Would it be advantageous to Norway to be a


member, to have a seat at the table? I believe that, but I am in a


minority today. For people who are market orientated, who we believe


that grow who believe we should have more in the economic development of


the world, being outside the EU has always been difficult. Norway may


have stayed out, but the EU has exerted its gravitational pull here


and drawn this country into the orbit of European integration all


the same. Let's find out some of our other


stories making the media. Jeremy is back. Let's talk about the story


that developed overnight, which is online. Not a physical newspapers,


but the fact that Donald Trump one Nevada he wasn't expecting to win.


It was a resounding victory for the Republican nominee for the White


House job. Quite astonishing. The momentum he has at the moment. It


is, and the momentum looks to be increasingly unstoppable. We are --


we still have super Tuesday to come next week. Because he is looking to


be well set in those states that are voting next week, he looks to be


moving towards that sort of winning post, as far as the delegates are


concerned. It looks increasingly likely, however, and however


surprising this may be, that he looks to be set fair for the


Republican nominee. I'm quoting here. Mr Trump, number one with


Hispanics. I'm really happy about that. Before he puts the wall and


won't allow anyone more in. He is looking to Mexico to pay for


the wall. Apart from the wall and apart from a few other things, not


allowing Muslims into the country, except, do we know anything about


his economic stands? This is the thing. There is still a huge element


of gaps in terms of the political process. The two maverick candidates


on both sides of the agenda, both Republicans and Democrats, in terms


of Sanders and John, both have a lot of issues to deal with in terms of


their microeconomic platforms. Neither have been investigated by


the voters. That would be interesting, because we have had


these enormous sound bite election process is undergoing and, as we


say, we know about Trump's siren calls for the wall about


immigration, but beyond that, there are huge issues to be clarified. I


think that will be the interesting point as we move closer to the


Republican delegation process reaching its conclusion, as to


whether these issues are going to be put into the focus. This time next


week, we will have the results from super Tuesday. That will help


clarify. A story in the Financial Times, which we have already


mentioned,. This is absolutely harrowing story, that is not having


much attention in the media. Partly probably because of where it has


happened. Apart, yes. People died, and it was in the investigations are


underway and is now people are being. The environmental backwash of


this process are hideous beyond the ramifications of the immediate death


of 17 people. We are talking about a disaster scenario that has happened


here. You're right that it hasn't had the focus that it perhaps


deserves, and in a sense that is partly due to the geographical


issue. It also just underlines the concern that there are, in terms of


relation to the building of dams and the maintenance of those dams,


because you've you don't maintain them, you create these seismic risk


factors for the local populations, and that is reflected here. You can


look at some other dams globally which are also in very dangerous


scenarios. It just underlines the human risks of the man-made process


and now they are being seen as reflected in terms of the corporate


pressure being put on the executives who are behind the process. We won't


get time, we only have about 15 seconds. Paramount is a struggle


because of its lacklustre filming. It is the end of the game. We will


talk about that in detail at the end of the day. Thank you for coming in.


It has been great to have you on the programme.


There will be more business news throughout the day on the BBC Live


webpage and on World Business Report.


Good morning. We are suddenly in the deep freeze this morning.


Temperature is widely below freezing right the way across the country and


the coldest spots managed to get down as low as minus seven Celsius


in the likes


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