25/05/2016 BBC Business Live


Similar Content

Browse content similar to 25/05/2016. Check below for episodes and series from the same categories and more!



This is Business Live from BBC News with Rachel Horne and Sally Bundock.


Talks in Brussels. Another cash injection to avoid default in July.


Live from London, that's our top story on Wednesday, 25th May.


They are calling it a major breakthrough. Eurozone Finance


Ministers agree a deal that will unlock funds in bail out funds and


phase in debt relief. And rights, camera, action -


the European Commission takes on the world's biggest players


in digital media but what will the changes deliver


for businesses and consumers? We are 30 minutes


into the trading day. The European markets were strong


yesterday and the theme And we'll be getting


the inside track on the business We're going to be talking


to the Chef Exec of an airline that carry's only business


class passengers. Jeff Bezos says McDonald's was his


first job while Michael Bloomberg This morning we want to know


what your first ever job?. A very warm welcome this morning.


Eurozone Finance Ministers agreed to unlock bail out funds to Greece.


After marathon talks that ended in the early hours of this morning in


Brussels, it was also agreed to phase in debt relief in two years


time, a key demand of the Greek Government and the International


Monetary Fund. The 19 ministers said the deal was made possible by


Greece's continued economic reforms. The European Commissioner for


economic and financial affairs welcomed the deal.


We have a good agreement in place which is as we expected and hoped. A


global agreement which opens the way for a significant disbursement of


much needed funding for Greece and for important measures on debt


relief. Above all, this opens the way for a return of confidence that


is so essential for lasting economic recovery in Greece which is our


common purpose. So yes, it is very important moment in that long and


sometimes difficult story. It has been a long and difficult


story, that's for sure. Our Business Correspondent Andrew


Walker joins me now. They are calling it a breakthrough,


or is it kicking the can down the road again? It is a breakthrough. It


will enable Greece to make payments that, debt repayments that are due


to central banks and other payments due to the International Monetary


Fund and make those payments on time and avoid what would potentially be


an extremely messy and disruptive default. It will also help Greece


with clearing some of the arrears that have been built up to business


suppliers for example, to the public sector and to tax payers who are due


refunds. So it is an important stage and I think the other point about


the debt relief, we don't have detail about exactly what is going


to be on offer, but certainly that was something that the International


Monetary Fund regarded as being essential to enable Greece to have a


sustainable debt burden over the coming decades and we really are


talking about decades because already it is going to be, it is


well into the 2050 decade before Greece would have fully repaid the


loans that it has already taken on. Just briefly, Andrew, this follows


the Greek Parliament approving new budget cuts and tax increases over


the weekend which has not gone down well in Greece, has it? No, that's


right. Those measures were essential to get the agreement that the


eurozone has given and even then I have to say, there is going to be


technical examination by the financial institutions, by the IMF


and the European Commission to ensure that they do genuinely comply


with what Greece was required to do, but I think those protests in Athens


are an indication that we're going to have more political turmoil as


this programme continues. Important though, this development is. Andrew


Walker, thank you. The likes of Amazon Prime


and Netflix and could be just hours away from being forced to make more


of their content inside The move is part of a raft


of proposals that will be unveiled later today as part of a plan


to shake up the digital The European Commission is expected


to rule that at least 20% of the streaming giant's content


consists of European Netflix has already denounced


the plans saying they will lead to streaming sites buying


lots of poor quality content just The plan could also lead to more


rigorous age restrictions for certain content on sites


like YouTube which traditional broadcasters wouldn't be able


to show during the day. As well as new media rules,


the Commission is also expected to announce a raft of other measures


aimed at creating These include an end to the practice


of geo-blocking which prevents customers in one country from buying


goods from online stores elsewhere Joining us from Brussels


is James Waterworth, Vice President, CCIA Europe,


a trade group representing those James, thank you for being on the


programme. Is this Europe meddling again or is Europe making the


playing field fairer? No, I mean much of what the European Union has


announced with this digital single market idea is very good. It makes


it easier for consumers to buy things from different countries in


Europe and makes it easier for businesses to trade across Europe.


However, the choices it makes in how it does this will be important. It


could end up making it actually harder. Netflix feels it has been


forced to make programmes in Europe, movies in Europe, and actually it


will water down what its unique selling point is. Well, companies


like Netflix of course already making or buying European


programming. So if you think about major blockbusters, major megabucks


investments they have made in France. In France they have made a


TV series called Marsai. They've bought many streaming sites have


bought films like, TV programmes like Top Gear, for example, so a lot


of quality European content is being made. What we think about quotas, it


won't necessarily improve the quality of what people want. So


potentially you will get bad programming and put on a service


which no one will watch. I bet others will counter that for sure.


Let's talk about the issue of rights. It is a minefield, how will


it be affected by the recommendations? Not necessarily


directly. It will more affect questions around safeguarding


children, what kind advertisements you can show. Rights, one of the


major pieces of legislation that's being looked at here now is whether


if you go on holiday. If you're going to go on holiday to Spain this


summer, whether you can take your, watch your Netflix account or BBCi


player when you're on holiday. That has many people who make TV


programming or make films worried about whether they will be able to


get the same amount of money for their rights, but actually, it seems


like a sensible measure which will ensure that consumers can get what


they've already paid for. James Waterworth thank you for your time


and we shall update you when we hear from bles as to what their


recommendations are. Monsanto has rejected a $62 billion


offer from Bayer that would have created the world's


biggest agricultural supplier. The US company said the offer


was "financially inadequate", but left the door open


for a potentially higher bid. Hugh Grant, Monsanto


Chief executive, said the proposal significantly


undervalued the company. He also raised concerns


about whether a deal would be Cuba's communist government has


announced it is legalising small and medium-sized private


businesses in the latest stage of economic reforms which began


when President Raul Castro took over The move could significantly expand


private enterprise in one of the world's last


centrally-planned economies. Huawei is suing tech rival Samsung


over claims that its patents The Chinese firm said


it was pursuing its South Korean rival in two courts -


one in California, Huawei says that several


of its cellular communications and software inventions had been


used in Samsung's phones Tata Steel will announce


its financial results for the first three months of this


year later today. They may also reveal


which bidders will continue in the race to buy the company's


British assets. Well, in the building behind me,


that's where the meeting is taking place and yes, of course, they will


be reviewing the financial situation of the company. They will be coming


out with their financial results for January to March this year and the


whole financial year from April last year to March this year, but they


will be assessing the bids that they've received. Earlier this


month, the company had confirmed that they had seven companies


expressing an interest in buying their UK operations. Monday was the


deadline for the final bids to be submitted and post that, we have not


yet received word from Tata Steel on how many companies have actually


made that bid, but post the meeting, we are expecting Tata to come out


with some statement and that's been perhaps, we will hear who made it to


the shortlist. Thank you.


The Hang Seng was up 2.56%. Its biggest leap for six weeks. The Dow


up over a percent. Figures out showing a surge in US home sales


giving investors confidence that the country can take the rumoured higher


interests which could be on the way. Green across the boards. Confidence


from the US filtering through and perhaps news of the deal in Greece


soothing the uncertainty that the markets don't like. Let's go over to


the States. On Tuesday we told you about Hewlett


Packard Enterprises reporting earnings. That deals with software


and servers. On Wednesday HP will be reporting. This houses the PC and


printing business. HP may not do as well as investors hoped, but it will


want to hear from HP executives on the company's efforts to cut costs.


Luxury jeweller Tiffany will be reporting earnings and if you have


been following some of the retail trends in America, you will know


that many high end brands have been struggling lately. The impact of the


strong dollar is starting to subside, but the issue for luxury


companies has been with customers preferring to spend their money on


their homes, insurance and travel. So what investors will be looking to


hear is what Tiffany's expects in terms of sales for the rest of the


year. Tiffany, diamonds are forever, so


they say! Joining us is Mike Amey,


managing director and There is so much going on. I feel


like I haven't stopped since I arrived at whatever time it was this


morning! Interesting that markets aren't reacting much to Greece. They


are focussed on the US home sales report, aren't they? That's right.


We are in one of the situations where everything looks like it is


going well. The soft patch looks like it has worked its way through.


Soft patch? That wasn't a soft patch. It was a crazy moment. Now we


appear to be back into a happier world where, you know, where


potentially the US can start to raise interest rates again. S and P


is back at the highs. Yeah, the markets have a better tone. One or


two things we need to keep an eye on. The Chinese currency is starting


to go down again. Yes, just talk us through that. The Chinese obviously


have a tight relationship with the US dollar with their exchange rate


and they are tied to the US dollar. When the dollar goes up, China's


currency goes up and they have had a tough time. They valued around the


turn of the year. That's one of the reasons we had the volatility in the


first place. A bit of nervousness, they might be doing that, but so far


things are holding well: This morning you were discussing the


bunny market. Give us more explanation. Why can we have only


two types of market? Why not have a new version. Bull markets are ones


that go up over time. Bear markets going down over time. A bunny market


is where you don't go anywhere, you just kind of go, hop, hop, hop...


Hopping in and out. Exactly. Don't get too caught up in the bit that


goes up or the bit that goes down. There is a degree of that going on


at the moment. Already, we won't talk about the dead cat bounce.


We'll confuse everybody! Still to come: Business class gets


the easy jet treatment. We speak to the man who says


he won't offer you the best business class experience but he will offer


you the cheapest. You're with Business


Live from BBC News. Marks Spencer has reported a 19.5%


fall in pre-tax annual profits Its new chief executive Steve Rowe


has pledged to slash prices and put more staff in stores to turn


around its beleaguered clothing arm, Let's speak to Rob Young,


who's just been talking to the boss. Co, Good morning. What did he say to


you? The big problem with Marks Spencer is the cloefting and home


ware divisions. -- clothing. Sales are down 3%. That old chestnut,


they blamed. But the City is they blamed. But the City is


focussing on their turn around plan. They say that that together with


difficult trading conditions at the moment will hit profits in the


short-term. We can see from this chart what investors are making of


that. Shares have been sliding for six months and this shows that


shares in M are down about 7%, suggesting investors don't like what


they have been hearing from the new boss today. What else do you think


we will hear from the new boss. We have had a whole line of M bosses


pledging to change. What will he do differently. Steve Rose said they


have cut the price of 300 different products, that is three and a half


million garments. And they will focus on what they call a stylish


contemporary feel and said M has not been listening to customers and


had tended to tell customers what they want instead of listening to


what they need. So the emphasis will be on cherishing and celebrating the


customer that he described adds Mr and Mrs M Are you Mrs M I am


not. I am a bit. Toy yo that are teaming with Uber


and Vaulks wagon getting a link up with Another taxi company. A lot


going on as car makers try and move into other realms in technology.


Our top story - Greece has agreed a deal to unlock a further


10.3 billion euros in loans from its international creditors.


Eurozone finance ministers also agreed to potentially offer


Greece debt relief - a concession that was necessary


For many the idea of flying in business class is a bit of a treat.


However for those whose jobs entail regularly taking to the skies,


it can also become an office on the move.


As well as offering the chance to sleep and relax, business class


also allows customers space to work and e-mail and even make calls


And airlines cash in on offering all these added extras -


it's estimated that profit margins for business class passengers are up


to ten times higher than they are for travellers in economy.


And all of that helps the balance sheet, according to IATA,


22% of airline revenue come from premium travellers.


The increasing demand for business travel is now leading to some


One of the company's leading that movement is La Compagnie,


they're an all-business-class airline that operates


The CEO and co founder of the airline, Frantz


I have to say for Rachael and I, we travel with three little boys on


planes. We don't share them. She has three, I have three. The thought of


a bed privacy sounds like another world us to. Yes, well obviousy when


we created the company what we did was only addressing the passenger's


need. Before travelling on La Compagnie, travelli long haul you


had only two experiences. We see them beyond the curtain. What we are


offering is a business class long haul, much, much cheaper than the


others. Everyone is Average is two two three times cheaper. At the


moment you travel between Paris and New York and Luton Airport, which is


north of London and New York. And you're saying that the price of a


ticket is two thirds less than say a legacy carrier. Two to three times


cheaper. We start at ?1,000 round trip, all in, you can carry two big


bags, you have access to the lounge both sides of the Pond. You have a


real bed, you have meals prepared by your chef. Other companies have


tried this like Skyline and they have gone bust aw and you did it


with your first airline and sold that on. Why do you think this one


will succeed? We see it as a success on the Paris to New York route and


we started those operations in 2014 and that is a big success. London


route it is coming up. It is ramping up. We are still ten points below


Paris, but the success starts to be here and we are happy. You know for


a small start up airline we have been happy and proud to be the only


European one to operate the two longest, the two busiest routes in


the word, London/New York and Paris/New York. We have good news,


when we started up with the London route one year ago we were operating


only five per week, we are going to go six per week by the end of June.


Why do you think it is working, what are you doing differently. It worked


well with and yon. You may ask British Airways why they paid 78


million for it, that was less than two years ago was 50 million. I


think in September 2008 the world has changed and everyone from one


day to the other became cost conscious. We have 64% of passengers


are corporations and they are more cost conscious and what is true of


core prafgss is usually true for you and me. When we want to travel, we


want to spend less. You said you need your planes to be two thirds


full to break even. More passengers, you're making a profit. You're going


to Europe and New York, what about the other side of the world, what


about Asia. First we want to reinforce our position in the North


at lap tick and getting -- Atlantic and getting more operations between


Paris and New York and London and from other nations to New York. Then


I guess we cannot stay away from the west coast of the US and Asia too


long. We are ran out of time. Thank you for coming N maybe we will


experience the luxury one day. When we haven't got to buy five flight


tickets. Shall we move on. Now, we've tended to see robots


as a bit of a threat, particularly to jobs as they become


capable of more and more tasks. But at Europe's biggest


robotics event all the talk The idea is that collaborative


robots will work with humans Our technology correspondent Rory


Cellan-Jones reports from Paris. In Paris this week you can meet all


kinds of robots. These once dance. This one is more practical, cleaning


your barbecue grill. For decades industrial robots have been doing


tasks. Robots have been in factories for years, but they're locked away,


seen as a threat to jobs. The new emphasis is on collaborative robots


you can work alongside and see almost as a work mate, perhaps have


a joke with. They're getting better at learning human tasks, but the


people building them say we should see them as friends not foes.


What other business stories has the media been


Mike Amey, managing director and portfolio manager at Pimco


We mentioned what was your first job? Pretty glamorous, I stacked


chickens in a frozen chicken factory. Mine was a pie factory.


Were you next to a conveyor belt. I was just earlier in the line. Do you


eat chicken now? Yes. Now, I can't eat pies. It was a well known


retailer. My first job was a summer camp leader. Great responsibility.


Getting everybody toeing the line. I had to teach orienteering. Two of


the kids went missing in the woods! This story is in the Daily


Telegraph, what jobs did the world's top business people do before they


were millionaires. Everyone can recognise Richard Branson. We know


what he was up to. But Jeff Bessos, the founder of Amazon worked in


McDonalds. A number just had regular jobs that we have all had. It gives


you experience, if you're going to you experience, if you're going to


run a big company, if you have plenty of experience that is what


they're looking for. It is a good grounding to start off stacking


chickens or... Mine was a figure skater. The CEO of net flicks, he


was a vacuum cleaner seamsman. -- Salesman. If you can sell that...


... You can do well. Thank you for coming. We will be back tomorrow.


See you soon. Goodbye.


Download Subtitles