02/06/2016 BBC Business Live


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This is Business Live from BBC News with Jamie Robertson


Don't ban Uber and AirBNB - that's the message from Brussels


as European cities crack down on the sharing economy.


Live from London, that's our top story on the 2nd of June.


Be more caring to the sharing - that's the message the European


Commission is poised to deliver today - in a bid to unify the


Also in the programme: Strikes, price wars and security fears.


Worrying times for the global airlines - but the boss of Lufthansa


tells us - passengers have never had it so good.


And most of us have a loyalty card - or three - somewhere in our wallets


- they often give you discounts - but they also give companies


a mine of information about their customers.


We'll be talking to the woman to helped to create the Tesco Clubcard.


Also today we're looking a story about the end of the


Yep, apparently British workers are just too busy


So on that note - we want to know what you do for lunch.


Do you eat lunch Al Fresco or Al Desko?


Let us know - just use the hashtag BBC Biz Live.


Companies like Uber and AirBnb are going to get a set of guidelines


from Europe today - telling them how they can be regulated.


And it's thought governments are going to be told - let them be.


That's not the way things have been going though.


Last month, Berlin started one of the toughest crackdowns


on AirBnb fining landlords without holiday permits.


Uber has also had its fair share of problems in Europe -


angry taxi drivers in France, Spain, Brussels and the UK


have all held protests against the ride-sharing app.


As well as a high profile raid on its offices in Paris last year.


Later this year, the European Court of Justice is due to rule


on whether Uber is just a digital service or instead a transport


company - which could mean it faces more regulation.


But the rise of the so-called sharing economy seems relentless.


By 2025, accountants PWC reckons the global market will be over


$335 billion from just 15 billion only two years ago.


That is a big increase. Let's stay with this story.


Debbie Wosskow, chair of Sharing Economy UK -


the UK's own sharing economy trade body.


She's also the founder of Love Home Swap, itself


Debbie, great to have you won the programme. Let's start with this


European Commission report. It could end up being a law, I guess? This is


great news for the consumer. The only thing I can think of is Europe


has got a tough job. It has got to convince industries, everything from


taxis to hotels? The key thing about this report, which has not yet been


released, says it is great news for the consumer because what it


provides is standardisation across 28 European countries. What you have


seen to date is very different treatment of sharing economy


platforms. You have France where Uber executives have been threatened


with jail. You have Berlin where AirBnb hosts, ordinary people


renting out their home or a room for a few days a year, have been


threatened with a 100,000 euros fine. This creates enormous


uncertainty in the minds of the consumer. What can they do? We do a


lot of stories where we talk about regulation. The European Court of


Justice is going to make a decision whether Uber is a tech company or a


transport company. Regulation always seems to be behind, technology goes


forward and regulation is back here. I think it is consecrated because of


the rate of change. The important thing about the sharing economy is


it allows ordinary people to make money and save money from the assets


the own and the skills they have. The great thing about our feeling


about what this report today will say is it makes that easier for the


consumer. But surely you have a problem where you have the growth in


an industry like this, and you don't have the regulation for the taxi


drivers, for people taking out an apartment in a city or whatever.


Places have got to come up to certain standards. Shouldn't you be


enforcing that in some way? Many of these sharing operations skip around


those red relations? I think one of the points from the report which is


interesting, and I would predict is a topic for the discussion to come,


is the status of the work on the sharing economy platform. Are they


employed by the platform, or are they completely independent as a


contractor. We have talked about Uber a lot, but this applies to a


lot of sharing economy businesses like companies delivering takeaway


is, and people providing services like cleaning in the home. Are those


people self-employed or are they employed? That has a huge impact on


not just how the platform pays tax, but also things like health and


safety. There is no solution there? I think it is complicated.


I would absolutely put the UK at the forefront of this conversation. We


have set up sharing economy UK, but we also the first company in


the world to develop an independent trust We will help people be more


confident that they will be treated in a uniform way. Thank you.


Iranian Oil Minister Bijan Zanganeh has rejected suggestions OPEC


would agree a production cap at its meeting in Vienna,


saying "An output ceiling has no benefit to us".


Tehran, which only recently returned to world oil markets after Western


sanctions were lifted, has opposed any attempt to limit


The taxi app Uber has attracted a $3.5 billion dollar investment


from Saudi Arabia's sovereign wealth fund.


The new money values the company at more than 62 billion dollars.


The money will help it to expand in the Middle East,


where the company says 80% of its users in Saudi Arabia


are women - who are banned from driving themselves in the country.


The European Central Bank is expected to raise growth


and inflation forecasts when it meets later.


But it's widely predicted to leave interest rates on hold and make no


change to its massive economic stimulus policies.


Perhaps no surprises there? I want to take a look at this. In Dublin,


all the big bosses of the global aviation industry... This is your


area. I love it! Ryanair is the largest carrier in Europe by


passenger numbers. It continues to grow but later in the programme, we


will hear from the big boss of Lufthansa. That is your's biggest


airline by revenue. He will talk about security. He says passengers,


you have never had a better? We will do that in a little bit.


Keep control! Now we've heard about Saudi Arabia


investing in Uber, it seems Singapore's sovereign wealth fund


has also been splashing the cash. It's bought a billion dollars


of shares in the Chinese Sharanjit Leyl is in


Singapore for us. This is really interesting. There


are quite a few New York hedge funds betting against Alibaba saying it


will go even lower, even weaker, if you will? They are betting against


that idea. These two Singapore funds have snapped up $1 billion of shares


in this Chinese e-commerce firm. Japan's Softbank which is Alibaba's


biggest shareholder, is selling off its stake in the firm to pay off its


own debts. It will continue as Alibaba's largest shareholder. Two


funds purchased $1 million worth of Alibaba's shares. They confirmed the


transaction and declined to comment further. Alibaba purchased 2 billion


stock from one of the funds. Senior executives purchased $400 million


worth. They seem to be a lot of opportunities for other firms


bidding to get a chunk of that as Softbank sells off a stake. Thank


you. Let's have a look at the markets.


The Nikkei is down. There is discussion about delaying a sales


tax which should strengthen the market. Since Monday, we have seen


the pound fall by 2 cents against the dollar. You can see the FTSE


moving up quarter of 1%. Not a huge amount of change there. Tomorrow, we


have got from the US jobs data. I think the markets are waiting to see


what happens there. Michelle Fleury has more about what is ahead on Wall


Street today. Friday's jobs report looms large. On


Thursday, investors will get a foretaste with a release of the


National employment report. It will probably show American companies


took on more staff in May. Private companies are expected to have hired


175,000 employees last month. Separately, Challenger Gray and


Christmas will release its report on lay-offs. The federal bank's report


known as the beige book, is already pointing to a tightening jobs


market. Fed official save the economy continues to improve, it may


soon be time for a rate hike. Chairwoman Janet Leyland said last


week, probably in the coming months such a move would be appropriate #


Janet Yellin. Let's stay with some market stories.


Laurence Gosling is a familiar face. Can we use this section to talk the


Opec meeting? Nothing will happen in Vienna today. I heard on my earlier


programmes this morning, some oil experts saying this rise, it is


around 50 bucks at the moment, it was $27 in January, this rise in the


price of oil, some will say it is a temporary blip, it has been causing


disruptions in Nigeria, Canada etc. Do you think it is a temporary blip?


No, I do. I think we are on a sustained rise. We are not going to


go back to $100. I think we will get $70 a barrel by the end of the year.


Mainly because I think the outlook for the global economy is better


than we thought it was in January. But there are other factors keeping


the price down. Iran is coming on stream but also there is shale gas


in the background. It is very cheap now to start up those new


operations. As soon as the price gets to a certain level, or it will


bring in supply? It is not so easy to turn these taps on in the US as


people suggest. A lot of them have closed down because the price has


dropped. For them to come back, it will require some positive US data.


I think it is more to do with the politics, the Saudi versus Iran


which has been playing out. But ultimately, the world economy,


particularly China looks healthier than it did. In a word, Opec, still


relevant? Less relevant than it used to be. You will come back and talk


through the papers. Thank you. They can often give you discounts,


but they also give companies a treasure trove of information


about their customers. We'll be talking to the woman


who helped to create You're with Business


Live from BBC News. The fate of the collapsed high


street retailer BHS is expected The company went into


administration in April, just a year after it was sold


by Sir Philip Green for ?1. The company's 11,000 staff


will learn whether it will be Rob Young is in our


Business newsroom. The fate of BHS is on a knife edge


this morning. Sources close to it so they anticipated a decision will be


made at some point today, whether to sell the retailer to a new owner, or


whether to begin the process of winding it up. Potential buyers have


come and gone in recent weeks, and it was thought there is only one


serious buyer left in this process, and we were told yesterday that


they'd needed refining, and a decision was likely to be made


today. This has been an anxious time for the 11,000 workers at BHS whose


jobs hang in the balance. Just briefly, what went wrong? Retail


analysts say it was a retailer that failed to keep up with fashion


trends, it was regarded as a bit out of date, and experts say that if the


company is bought, it needs serious amounts of money to be able to turn


it around, but if there isn't a buyer, this would be the biggest


failure on the high street since Woolworths back in 2008. Rob Young,


thank you for joining us. We will talk to again tomorrow. Let's have a


look and see what is happening on BBC Business Live. This is all about


the Premier League, it is way ahead of everybody else in terms of


finances, 92 clubs earned ?4 billion last season. We knew this was on the


cards. Is this all foreign investment, Lauren was saying it was


a lot to do with Chinese investment. It is from all over the world. And


Leicester is Thai, isn't it. I don't follow football. In


Australia, we kicks a ball, but then we pick it up and run with it, too.


Very confusing. Our top story - be more


caring to the sharing. That's the message the European


Commission is poised to deliver today in a bid to unify the approach


to services like Uber and AirBNB Most of us have got a loyalty card


stashed somewhere in our wallets. The same cards that also provide


companies with a treasure trove One of those cards we're talking


about is the Tesco Clubcard. It was introduced in 1995,


became a runaway success and helped the company leapfrog its competitor


Sainsbury's in the late 1990s. The loyalty card scheme was created


by Edwina Dunn and her mathematician husband for a fraction


of the cost of rival bids. I say mathematician advisedly,


because that will become important in a second.


She's now the chief executive of Starcount, which uses social


media and financial data to try and help companies better


And we have got her in the studio! Great to have you with us. Can I


start with this, cause you mentioned about the science. I have a Tesco


Clubcard, most people probably have one, and I get e-mails saying, this


is on sale, this is good, they are products I have purchased in the


past. So I blame you and your husband for that! You came up with


the science behind this. When was that eureka moment? I don't think


there had ever been data quite as rich as this before. People talk


about big data, and every body thinks their data is valuable, and


mostly it isn't. It is mostly things that don't translate to economic


indicators, but what turned out was that how we shop is probably one of


the most important economic indicators we have in our armoury


today, because we can tell when the increased the size of the basket, we


can tell when students come back home, we can tell when people lose


their jobs. It is a really powerful indicator. But you say you are


moving on away from just looking at what they buy but how they behave on


social media, so you are looking at more in-depth view of how we behave.


There are very few things that are predicted from what we bought


before. But, serial, milk, we bought them last week, we buy them this


week, but if you buy a car, travel, a luxury item, what you bought


before is not a predictor of what you are going to buy. So what we are


looking at now, used to beat you are what you eat, now it is you are what


you love. We are looking at the persona of what it is you are


passionate about, and that becomes a forecast of future intent. And is it


the same science that you started back then? It isn't, interestingly.


That is a really good question, because the maths we are using now


is all about networks and connectivity. So it is who is


connected to who. We are looking at the science of leaders and


followers, because it is who you follow that is defining who you are.


It is a bit creepy. The leaders are public entities. What we follow, the


really shocking news is we have looked at girls and boys, and what


they follow. Boys have quite a diverse portfolio of what they


follow. The shocking thing about girls is on the whole, they follow


celebrity and fashion exclusively. Much more narrow-minded, in a way.


This will get me e-mails! This is the shocking truth. It is narrow,


and actually, one of the things that I have found from this data is that


maybe girls don't have enough role models, and it is another thing that


I am really into. Easier to sell to them, then? It is easier to know


what they're looking at, which is celebrity in fashion, and those are


connected. There is always talk about the danger of our information


being in the wrong hands. What is your take on the privacy laws? The


great thing about leaders on social media is that they can't really get


there unless they have 10,000 followers, so they are brands and


public entities. They want to be seen and heard, so it is public


data. I just pipped 10,000 followers, so that means I'm a


public entity in my information can be out there? Is it easy to get the


information? It is easy to get the data, and we know who is crazy about


you and who is crazy about you and we can understand not only that they


like you but what else they like... You are scaring the bid Jesus out of


me! Thank you very much for coming in.


Come on, James. Now, this Thursday, all the top


airline bosses are in Dublin for the annual meeting


of their trade body IATA, the International Air


Transport Association. We've been talking to Carsten Spohr,


the boss of Europe's He says the airline industry


is constantly putting all efforts It is important to state that flying


is and remains the safest way of transport. It has been, and with all


the ongoing efforts to increase safety even further, it will be in


the future, so even though we have had unfortunate incidents in the


last month, historically flying is as safe as ever before, and I have


not visited one meeting at this conference where we don't touch on


safety. It is the number one, surely for Lufthansa and I think for the


whole industry. Aaron is desperately try to find something. Boozy lunches


are over. I thought they had been over four years. You can't afford to


because your boss won't sign off your expenses the way they did. Does


it make a difference to the way we do business? No, because lunch has


been replaced by breakfast. Boozy breakfasts? No, sober breakfasts,


and short ones. And do we see people having their lunch al desko? You


don't have time to go for a big lunch in the middle of the day.


Definitely boozy lunches are over. In the Scandinavian countries, it is


highly publicised, I used to live in Copenhagen, they would make sure


that you had a break and go to the canteen, because it was healthy for


the mind. This story from Vancouver, it says house owners made more


sitting on their assets than the entire population did working last


year. Is this a surprise or story anywhere on the globe now? A lot of


major cities, London is a great example, a single family home has


been rising in price and value, because there is so much demand.


But what does it mean about where money is? It isn't going to


investment and business. It shows that there are what economists call


asset bubbles, and a lot of wealth is in real estate, because it is a


safe place in people's minds to put the money, because it is safer than


the bank or stock market. They are not getting the returns from the


bank, because interest rates are so low. How long do we have? That it!


We will see you soon, Lawrence. There will be more business news


throughout the day on the BBC Live web page and on World Business


Report. We will be back here, I will be back


in two hours. He is off. We will see you tomorrow!


Most of us can look forward to some fine weather come the weekend.


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