11/04/2016 BBC Business Live


Similar Content

Browse content similar to 11/04/2016. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News with Ben Thompson


Yahoo! up for sale.


The owner of the Daily Mail newspaper is considering a bid


for the struggling internet giant - but could there be rival bidders?


Live from London, that's our top story on Monday the 11th of April.


After struggling to compete with the likes of Google


and Facebook, Yahoo! has been under pressure


from shareholders to turn itself around.


Now the Daily Mail and General Trust has confirmed it's in early stage


talks to formulate a bid with private equity companies.


A little-known London investment firm is poised to save 4000 steel


Greybull Capital is in talks to buy Scunthorpe steelworks


from Tata Steel, in the first sale


And a brand-new trading week has begun in Europe, looking not so good


so far, and we will explain why. And with selfie sticks


and smartphones, do We meet the man behind


Photobox who wants us all to print our photos on cards,


mugs, T-shirts and calendars. And today we want to know,


is there a future for Yahoo!? As usual, it is a packed show, so


let's get cracking. The owner of Britain's Daily Mail


newspaper is considering a bid for the struggling US


internet company Yahoo!. The Daily Mail and General Trust


is in talks with private equity Yahoo!


is under pressure from around, and just weeks ago invited


interested parties to make an offer. So far Google and the US


telecoms firm Verizon and we now add to that list


the Daily Mail. For Yahoo!'s boss Marissa Mayer,


it's an admission she is losing her battle to turn around


the struggling tech giant. There were high


hopes when she was hired that she would revive Yahoo!


that had just churned through several bosses


in a short space of time. as one of the biggest power


players in Silicon Valley, rise to the top management


at Google. was still marred by slowing growth


and internal dissent. It's left it vulnerable


to activist investors - like shareholder Starboard Value


demanding the board be completely Windsor Holden is the Head


of Forecasting Consultancy Sally running through some of the


potential bidders. There are three names in the fray as we know it at


the moment, potentially Google, we now know the Daily Mail, and also


the Verizon. Essentially, each brings a different attraction to the


table. Part of Yahoo! Is attractive to Verizon, who purchased a AOL last


year primarily for its advertising side, so if they purchased Yahoo,


they would come under the same roof as AOL, so essentially what we have


heard is that if Verizon did make that purchase, then Tim Armstrong


would essentially head-up Yahoo and replace Marissa Mayer. The Daily


Mail again, the content and the advertising would again be very


attractive. The Daily Mail couldn't purchase Yahoo! On its own, it is


just too big. So this is where the private equity firms coming. The


content of the advertising is attractive, but really, where the


value of it comes in four other players are things like Ali Baba,


and that accounts for the vast bulk of its value. Let's touch on the


brand value. It is well known outside the US, which is where some


of this focus will be, but is this the beginning of the end Yahoo! An


Internet brand? It could be. Remember its strength as a brand, at


the height of its strength, that was ten years ago, and at that time,


Google and Yahoo! Were turning over roughly the same amount in terms of


revenues. Ten years down the line, Google has been more agile, and is


turning over 15 times the revenue of Yahoo! Now. Yahoo! Made more than $4


billion of loss last year, compared with the past 14 years when it had


made a profit. Its revenues have flat lined in the past decade, the


brand strength, while significant, is on the wane. Time is against us,


but thank you very much, Windsor Holden.


Let's have a look at some other business stories.


Japan has sought to reassure investors that it is willing


to intervene in the currency markets if needed.


The yen has gained more than 10% against the US dollar this year,


which worries the government because it hurts exports and puts


pressure on the country's already low inflation.


The statement from Japanese officials follows a recent pledge


by the G20 nations to consult on foreign exchange markets


and avoid competitive currency devaluations.


The latest figures for March show that Chinese


The consumer price index again rose by 2.3%.


Later in the week, China will report economic growth figures


Weak data would increase the likelihood of the Chinese


Tata Steel is beginning the formal process of selling its loss-making


UK plants, inviting interested bidders to submit their offers.


Today the investment firm Greybull Capital is expected


to announce a deal to buy the part of Tata Steel's business which makes


products for the construction and rail industries.


This includes the company's plant in Scunthorpe, which employs more


Let's take you to the Business Live page. There has been a lot of debate


about our banks in the wake of scandals, and today banks have been


fined for ?53 billion for their misdemeanours. All of those scandals


that have hit the banking industry over the past couple of years,


finally putting a total on it, a staggering ?53 billion. And the tax


return row continues, there is a picture that of a rather happy


looking Chancellor. That was probably not taken this


morning! The Prime Minister yesterday made


details of his tax affairs public, and we now expect the Chancellor to


do the same within the next few days, that is according to our


political editor Norman Smith. His account ats are busy!


Where the biggest ever trade delegation from Australia


It's hoping to boost trade between the two countries.


Robin Brant is in Shanghai.


A lot of money riding on this. They did this last time in 2014, an


injection into the Australian economy. According to the


government, 3.5 billion US dollars. This is a much bigger effort this


time around, representatives from 1000 Australian businesses, as you


have just referred to, some of them land today, it is a five-day effort


and they are going to eight cities, culminating in a visit from the


Prime Minister, Malcolm Turnbull, who will be in Shanghai briefly on


Thursday, and up to Beijing on Friday. The politics of the moment


between the two countries a little tricky, Turnbull has called China's


moves into the contested South China Sea islands counter-productive. But


they will set up a side and try to take the relationship between


Australia and China to the next chapter. Looking back to what their


relationship was defined by ten years ago, it was ostensibly the


Chinese buying lots of stuff on the ground in Australia, those days are


over so this mission is about trying to broaden the appeal, particularly


on tourism and education. That is where the really big push will be.


Thank you so much, Robin Brant in Shanghai for us, and you will keep


us up-to-date as the week progresses on that trade delegation. Let's look


at the markets in Asia now. Japan not doing so well, down almost half


a percent, that is about the fact that the Japanese yen is


strengthening day after day, the seventh day in a row, stronger


versus the US dollar, making all of its goods overseas more expensive to


buy. But as you can see, Hong Kong and China ended the day fairly flat,


despite that inflation news we had which we have already mentioned in


the programme. A lot of economic news coming out of China this week,


it will be very much in focus as the week progresses. Let's look at


Europe now. When we looked at them a few minutes ago, they were all


headed lower, the FTSE 100 in London and Germany and France. We are


trying to bring you the numbers if we can, but just to say, lots of


issues on the minds of investors, including lots of reports in the


press today that the IMF is poised to downgrade the global growth


forecast yet again. That is the numbers in Europe, and I will hand


you back to Ben for more detail on the winners and losers.


Thank you very much. Joining us is Brenda Kelly, Head


Analyst at London Capital Group. Let's stay with Europe. We consider


numbers behind us. -- we can see the numbers behind us. Not everyone is


happy with the interest policy. It is good news for some bad for others


when you cut interest rates. You are looking at negative interest rates


from the ECB and a dose of quantitative easing that continue


for a number of years. This is all very well when it started taking


effect in the economy, but when you have a stronger euro affecting


German exports, and the rise of the era scare as a result of the actions


of the ECB, that doesn't make the finance minister, Wolfgang Schauble,


very happy. And a strong euro is something of a problem because it


feeds into the disinflation we are seeing in Europe, and it is


affecting export competition as well. So for the time being,


everything is about currency, and I think the markets are taking their


cues for the likes of the yen, the likes of the euro, and the US


dollar, where it is always a little uncertain as to when the next move


will be from the Federal reserve. We are into a new quarter, so in terms


of market this week, what do you think will be weighing on them for


Europe? Will it become oddities again? Is it looking again ahead to


the central bank? Oil prices were dictating the strength and weakness


of the equity markets over the last quarter, and we have seen oil go


back up to almost $40 per barrel, but we haven't seen that follow


suit, so a lot will depend on what Opec say in the coming weeks over


production. Certainly China's GDP due out later this week will keep


sentiment capped, and that will be closely watched by all traders. And


a big week for China, we get obsessed about that growth number,


and whether it is true or not as well, but we will be watching it


closely. We certainly will. You will be back to talk us through the


papers a little later. Thank you. We meet the boss


of card and gift firm Photobox and find out whether in


the age of smartphones and selfie sticks, there's still life left


in the humble photo frame.You're In the UK, Tata Steel


begins the formal process of selling its loss-making plants


by inviting interested bidders Thousands of workers in England


and Wales risk losing their jobs There is still doubt over


the Port Talbot works - however the BBC understands that


a city investment firm will agree to buy Tata's Scunthorpe


plant later today. Our business editor Simon Jack


is following the story. Simon, talk us through what we know


at the moment. Clearly a crucial day for those jobs that hang in the


balance. This is a rather good news story for what has been pretty bleak


outlook for the UK steel industry. The Scunthorpe plant has been up for


sale for some time, almost a year, and we are expecting today to get


news that this deal to save that plant will be finalised, A.D. With


Greybull Capital, a little-known investment fund which specialises in


turn around failing companies. There have already been some redundancies


from about 5000 down to around 4000, and those employees left will see


some pension and salary cut. But that I think is a price worth


paying, many people think, to preserve our plant which makes


trains, rails, Network Rail gets most of its rails from this plant,


so good news in an otherwise bleak output. This is not the same as the


Port Talbot story, which was surprisingly put up for sale just


ten days ago, the fate of that still very much in the balance, but this


is a good bit of news for one bit of the Tartar steel empire. I was just


going to say that this is a very positive start to the process, and I


would imagine if everybody's morale, whether in Port Talbot or


Scunthorpe, it is important for them to have a strong beginning to the


process where other people might come in hopefully. I think that is


right. What this deal shows is there is some light at the end of the


tunnel, life beyond Tata Steel. Sajid Javid will trumpet this, the


Business Minister, saying that there are people who want to invest if you


can get the conditions right. But this plant basically makes things


called long products, half finished stuff, the Port Talbot steelworks


makes the basics lab, the real raw materials, and that is the bit that


they are going to find tough to sell, but good news today for


Scunthorpe. Simon, thank you very much. Much more on the website.


You're watching Business Live - our top story: Yahoo up for sale.


The owner of the Daily Mail newspaper confirms it's


considering a bid for the struggling US internet company.


That's alongside a potential bid for Google. We will keep an eye on this.


Call it new technology meets old - Photobox turns old memories,


from our photos and videos, into personalised products,


The company also owns Moonpig, which lets people


personalise and send greetings cards.


executive ...but the company began life in a garage in West London


Since 2006, it's grown annual revenue from $20 million to over


And has more than 1,000 employees across Europe


Stan Lauren is the Chief Executive of Photobox Group,


Thank you for coming in. Good to have you here. We have an


illustration here... You brought us a rather nice gift, I will get it


the right way. I don't know why someone would want so many pictures


of us but this is a gift you brought in and this is the sort of thing


that you do and we said it's about reading new life into photos.


Perhaps we stopped printing them down at the local shop, a packet of


24 prints, now it's about putting them on campus, T-shirts... That is


the business. That's right, it's a big industry and we are the leader,


it's all about making products that are personal, and convey a message.


You smiled when you open this... And that is what most people do when


they receive a card from one of our products. That is the business. It's


so important, with a business like this, but your experience is the


right experience and I must say, mine was not great when I dry to use


photo box to get aid look of my children's photos from my phone and


I am a bit of a technophobe anyway, I am not your best customer but it


was a difficult process and I dry and successfully used a competitor


and that is the issue with businesses like yours. You have to


attract the customer quickly and grab them and stay hold of them


because there are many other companies like yours out there that


do the same thing. Yes, we are very focused on obviously dry to make it


as simple as possible for customers to send us their photos and make a


product that is inspiring and obviously we want to make it with


the right quality and time for our customers. That is what we are


obsessed about and I am sorry we don't seem to always succeed but


when we don't we try to fix it. But in the end, what counts is the


result, as a customer. Do you get the right product with the right


photos, with the right quality that allows you to share with the people


you love, something, either at the memory of a trip or the first year


of your child... Or a party... Those are the emotions that we allow


people to share with friends and family. In that way, it's very


complimentary to four tap in social networks. People are sharing in a


broad sense, what's happening in their lives, we are more about the


emotions, memories, and so on, and we still think there is a long or a


big potential for physical products in your home, with your photos. We


touched on the fact that its old technology meets new, photo using it


in a different way, do you get frustrated with the limitations of


the process, you can do it on the website, you can print it using


high-tech methods and then you have to put it in the post, that's where


the likes of companies like Amazon supper, getting it to the house is


an age-old process. Long postage times, the cost of getting it to


someone... But that is improving their lot. You can send something


overnight quite cost efficiently, you can send something same day, at


least within London, tomorrow we are pretty sure that we will be able to


send in a few hours, but products to our customers, there is a lot of


innovation going on on the logistics and as well as upstream, in terms of


the device, helping customers make these products more user-friendly


from their mobile phone, that is a big focus. There is a lot of


improvement through that chain to make it easier for customers to buy


products. Broadly, you are spread across Europe, you are in the UK,


France, Spain and Germany, is that correct? Across 20 countries in


Europe. And also... Not so in the United States... Are you going to


try and make away into the United States or is that the market that is


too saturated and two different? No plans for that right now, 6 billion


market opportunity in Europe alone, we are leading across Europe right


now and we still think there is potential for share gains and growth


in our geographic. Time is against us but really nice to see you and


thank you for this glamorous picture of Sally and me. We will cherish


that. That will go on the wall in the green room. Really nice to see


you. Thank you. In a moment we'll take a look


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


to get in touch with us. As promised... We did ask you to get


get in touch with us. Do you still use Yahoo, potential buyers lining


up to take control of the business. A big response. Business like


there's asking do you use Yahoo... The 90s called, they want their


discussion topic back. That was the response. That is a valid topic but


it could be bought but keep your comments coming in. I just


remembered I have a Yahoo account, I haven't logged in for a year and


another correspondent said... Use Yahoo as my e-mail second account...


And another viewer says I use it to give to people that I don't want


e-mails from, spam e-mails... Plenty more of your comments coming in. An


interesting one, the value of Yahoo is in the network of ageing but


wealthy customers. I don't know what that says about me with my account.


But nonetheless, the boss has failed to innovate during her tenure, that


is a real challenge. How do you make users make money and stop them going


elsewhere? What other business


stories has the media been Joining us again is


Brenda Kelly, Head Analyst The Financial Times reporting that


The Royal Bank of Scotland is pulling out of India. This has been


going on for a while, it's hoping to offload in India, failing to find a


buyer, lots of regulations and restrictions preventing them from


doing it but they have decided it's cheaper to get rid rather than wait


for a buyer to come along, it has found some buyers as far as some of


its assets but it will be leaving much of its operations behind in


India and starting to focus on the bits of business making money. It's


about the bits of business that are less risky, we've seen a lot of the


big axe had to be risk averse given the clamp-down on their operations,


risky investment banking. We have seen a number of them pulling back


from ventures overseas as a result. It is necessary, they have to build


up their Tier one capital to be fronting forward and allow


themselves to be regulated and ultimately when you have that


restriction in terms of high risk financing, you are going to impact


profitability and that is the main issue of some of the banks having to


build capital and not being allowed to look down riskier avenues to


impact the margins on the upside and a low interest environment, you have


problems per shareholders. Another story... Barclays is asking staff


who is your best friend, what is this all about? Yes... This is the


new head of Barclays, and he is ultimately trying to focus on


friendship and build a better culture within the bank and he's


trying to make banking a respected profession. In your experience... Do


you have many best friends? I have plenty of best friends, imagine if


you choose a best friend on the other person does not choose you...


Nevertheless, an uphill battle for Barclays, trying to bring the


banking sector back from the brink, it has been dogged by a lot of... I


suppose its own problems and misdemeanours... Is this to stop


people working in silos, just their bed, get on with it, that is when


problems start. I suppose there is an element of that, they are


encouraging loyalty between different departments, you find it


will be difficult to do, to get the bank back to where it was. Brenda,


thank you. We are all best friends and now I have the picture to prove


that. That is all from business life. We will see you very soon.


Goodbye. Hello. A slow-moving weather front


offering outbreaks of rain to some parts of the country. Stretching


from Northern Ireland, you can see this picture, across to Wales,


southern England.


Download Subtitles