21/06/2016

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:00:00. > :00:07.This is Business Live from BBC News with Aaron Heslehurst

:00:08. > :00:12.With just two days until the UK votes

:00:13. > :00:15.on its EU membership, all eyes are on the pound.

:00:16. > :00:18.The billionaire investor George Soros says it will sink

:00:19. > :00:22.like a stone if the UK leaves, but those supporting a Brexit

:00:23. > :00:29.Live from London, that's our top story

:00:30. > :01:00.the EU would lead to the pound dropping by at least

:01:01. > :01:04.They say he was wrong on joining the Euro

:01:05. > :01:09.Will be looking at all sides of the argument.

:01:10. > :01:11.Walmart seeks to make inroads in China.

:01:12. > :01:14.The global retail giant is going to give away its struggling

:01:15. > :01:17.website in the country in exchange for a 5% stake in China's

:01:18. > :01:26.And the markets after that over 3% climb for most major markets, today

:01:27. > :01:30.they have dipped slightly. So what's the feeling on the trading floors

:01:31. > :01:31.today in Europe? We will talk you through that.

:01:32. > :01:35.And do you fancy using your holiday this year to work on a farm, teach

:01:36. > :01:42.It might not be up your street but it's now a growing area

:01:43. > :01:44.We speak to the woman who's turned experiences

:01:45. > :01:49.So, on that note, when you travel is that your idea

:01:50. > :01:55.volunteering at a school in India, taking a cooking class in Nepal

:01:56. > :01:57.or even helping out on a farm in the Philippines?

:01:58. > :02:12.Let us know what you think - just use the hashtag #bbcbizlive

:02:13. > :02:20.Do send us your suggestions. I'm sure you've got some good ideas for

:02:21. > :02:24.holiday for Aaron. Let's talk about what is going on as far as the UK

:02:25. > :02:26.referendum is concerned today. The latest add his voice to the debate

:02:27. > :02:34.is George Soros, the investor who made

:02:35. > :02:39.$1 billion by betting against the pound on Black Wednesday

:02:40. > :02:42.in 1992, who has warned of a Black Friday if Britain votes

:02:43. > :02:44.to leave the European Union. Soros warns sterling could drop

:02:45. > :02:47.in value by more than 20% and says voters are "grossly underestimating"

:02:48. > :02:50.the risks of a Brexit. Vote Leave says Mr Soros

:02:51. > :02:52.is a long-standing advocate of giving the EU further control

:02:53. > :02:54.of Britain's finances. Yesterday the pound jumped the most

:02:55. > :02:57.against the dollar in seven years, the likelihood of the UK

:02:58. > :03:00.leaving the European Union. The currency rose by 2.43%

:03:01. > :03:13.after several polls suggested that the Leave campaign had

:03:14. > :03:16.lost its lead in the race, with both The former boss of Tesco Sir Terry

:03:17. > :03:19.Leahy and former head of Marks and Spencer Mark Bolland

:03:20. > :03:22.have also waded into the debate with the support of the shop

:03:23. > :03:25.workers' union Usdaw. They claim households

:03:26. > :03:30.would be at least ?584 worse off a year, because of an expected

:03:31. > :03:34.fall in the value of sterling dismissed the warnings,

:03:35. > :03:41.claiming EU membership has put up Supporters of a Brexit also argue

:03:42. > :03:47.that a weaker pound would benefit the UK because it would make

:03:48. > :04:01.Britain's exports cheaper. lets get more on this. Tim Martin is

:04:02. > :04:08.chairman of the JD Wetherspoon pub chain. He is a vocal proponent of

:04:09. > :04:12.leaving the EU. He joins us now from Exeter to talk all things EU

:04:13. > :04:19.referendum. Great to have you on the programme. I'm trying to understand

:04:20. > :04:23.why you are so for leaving because, for example, if the pundits have it

:04:24. > :04:28.right, if the average UK household would be done something like 550

:04:29. > :04:35.quid, that's 550 quid less to spend in your pubs. That's a voodoo

:04:36. > :04:41.economic said and George Soros calls a Black Wednesday but, of course, as

:04:42. > :04:46.most viewers will know, the name was changed to white Wednesday in 1992.

:04:47. > :04:51.We got kicked out of the exchange rate mechanism, the pound was

:04:52. > :04:53.overvalued and we started the magnificent recovery which lasted

:04:54. > :05:00.for years and defied those who suggested we should stay in the

:05:01. > :05:03.exchange rate mechanism. If we leave the EU, which is undemocratic and

:05:04. > :05:08.unsuccessful, with great problems in Greece, Portugal and elsewhere, the

:05:09. > :05:12.first thing that will happen is that in our pubs, food prices will go

:05:13. > :05:19.down because a lot of our food is bought from outside the EU. All our

:05:20. > :05:25.wine is bought from outside the EU and most of it has a tariff, so

:05:26. > :05:30.we'll lose the tariffs. Sorry to interrupt but if the UK leaves, as

:05:31. > :05:34.no doubt many will say and we know it, sterling will drop. Some say

:05:35. > :05:39.50%, some say 20 percentage top that's going to make importing goods

:05:40. > :05:45.more expensive. I just remember the huge problems in the early 1990s

:05:46. > :05:48.when the pound was going up. It was supposed to be our biggest problem

:05:49. > :05:53.and it was creating enormous problems the manufacturing industry.

:05:54. > :05:58.There are certain effects if the pound goes up or down, it's a

:05:59. > :06:02.floating currency. It goes up and down all the time, so does the stock

:06:03. > :06:07.market. And I don't think that you can say that that's the reason.

:06:08. > :06:13.Right out of the blue, the pound is going to go down? That's bad. Where

:06:14. > :06:17.has this come from? It's ridiculous. From your perspective... Sorry, this

:06:18. > :06:20.is Sally Bond at joining in. Many of your punters, I'm sure, have been

:06:21. > :06:25.talking to you about this referendum, and gauging the mood

:06:26. > :06:31.where you work, what are they saying to you? I think that they are

:06:32. > :06:35.starting to get their minds around the different issues. The key issue

:06:36. > :06:39.with the EU is that it's not democratic. It's increasingly

:06:40. > :06:44.undemocratic and if you look around the world, which I think most people

:06:45. > :06:51.now appreciate, Australia, New Zealand, North America, South Korea,

:06:52. > :06:56.it's always the democracies which do better, and since the EU has become

:06:57. > :07:00.more centralised and it has started to have a lot of economic problems,

:07:01. > :07:05.we are not talking about a very successful area. The further you are

:07:06. > :07:11.away from the centre of the EU, the more successful your economy is. The

:07:12. > :07:18.great problem is, we have to have this dogfight to stay out of the

:07:19. > :07:22.euro, not to have... To have opt outs on various things, to avoid a

:07:23. > :07:28.tampon tax. So it's not a very successful area. We need democracy,

:07:29. > :07:30.where laws are made in this country, like New Zealand, Australia, North

:07:31. > :07:35.America. It's not anything to profound. We appreciate your time.

:07:36. > :07:42.Thank you, mate, for joining us. Talk to you again sometime.

:07:43. > :07:43.Lots more on that story in a few minutes. Let's just squeeze in some

:07:44. > :07:46.other business news. Former Volkswagen boss

:07:47. > :07:48.Martin Winterkorn is under investigation in Germany

:07:49. > :07:50.for alleged market manipulation. German prosecutors have

:07:51. > :07:52.accused Mr Winterkorn and another former board member

:07:53. > :07:54.of withholding information from investors about

:07:55. > :07:56.VW's emissions scandal. Mr Winterkorn resigned last

:07:57. > :07:58.September, following revelations the firm cheated US diesel

:07:59. > :08:02.car emissions tests. But VW said the prosecutors have

:08:03. > :08:04.offered "no new facts The aviation industry could be one

:08:05. > :08:10.of the biggest beneficiaries of changes to India's strict

:08:11. > :08:12.foreign investment rules. The government has announced it

:08:13. > :08:15.will allow 100% foreign ownership of airlines and of some

:08:16. > :08:19.defence businesses too. And for foreign firms

:08:20. > :08:22.trying to get into retail, there's respite from a rule that

:08:23. > :08:26.required 30% of what they sold to be Let's take a look round the world

:08:27. > :08:38.at what's business stories We learnt today that the US

:08:39. > :08:43.retail giant Walmart is rethinking its digital strategy,

:08:44. > :08:46.to tap into the Chinese market. Mariko Oi has been

:08:47. > :09:06.following the story. Walmart that biggest retailer in the

:09:07. > :09:10.world looking at the biggest growth area in the world.

:09:11. > :09:14.Indeed. The company's name that you were looking at was Yihaodian, which

:09:15. > :09:19.is the online company that Walmart has in China. It targets wealthy

:09:20. > :09:24.customers, especially women, selling groceries, but it has really been

:09:25. > :09:29.struggling, so it has announced that it is going to sell that unit to the

:09:30. > :09:34.country's second-biggest be, is company, called Jaidee .com. In

:09:35. > :09:38.return, Walmart will have a five per stake in that company and will be

:09:39. > :09:42.listed as a preferred seller. So the company hopes that this deal would

:09:43. > :09:47.give them greater exposure in other parts of China and investors seem to

:09:48. > :09:50.like the plan as shares of Walmart are rising on Wall Street after the

:09:51. > :09:53.news. Thanks a lot. Interesting story to

:09:54. > :09:55.keep alive, what Walmart is up to in China.

:09:56. > :10:03.Let's show you how markets fared in Asia. The main market in Japan by

:10:04. > :10:07.almost 1%. Hong Kong followed after a good night on Wall Street. This

:10:08. > :10:11.was on the back of reports showing that the Remain camp was seemingly

:10:12. > :10:16.ahead but now the polls are too close to call yet again. We all know

:10:17. > :10:20.how reliable polls are, don't we? But that's how things have been

:10:21. > :10:26.going in Asia. The yen strengthening a little. Some nerds out there. And

:10:27. > :10:30.this is Europe, really flat and fairly mixed. Massive jumps

:10:31. > :10:33.yesterday. If you look at the closing numbers for Europe, 3.5%

:10:34. > :10:40.higher for France, three percentile for London. Quite a big marked

:10:41. > :10:42.bounce on the market on Monday so no surprise they are flat. We will talk

:10:43. > :10:46.some more about the market sentiment in a few minutes.

:10:47. > :10:49.Samira Hussain has the details about what's ahead on Wall Street today.

:10:50. > :10:52.On Tuesday, chair of the US Federal reserve Janet Yellen will be

:10:53. > :10:55.This is Miss Yellen's semiannual appearance on Capitol Hill.

:10:56. > :10:58.She will be delivering remarks on monetary policy and then

:10:59. > :10:59.answer questions from congressional leaders.

:11:00. > :11:04.Separately, Miss Yellen and the US Treasury Secretary Jack Lew

:11:05. > :11:07.will attend the opening meeting of the Financial Stability

:11:08. > :11:13.The Fsoc, as it is often referred to, is responsible for monitoring

:11:14. > :11:19.And in other news, FedEx will be reporting earnings.

:11:20. > :11:22.Investors will want to hear all about its recent acquisition

:11:23. > :11:27.of the Dutch company TNT and, of course, preparations for this

:11:28. > :11:32.Hard to believe we're talking about Christmas when summer has only

:11:33. > :11:48.Good on you! We already thinking about Christmas?

:11:49. > :11:50.Are you thinking about Christmas? You are kidding me! I will pop my

:11:51. > :11:51.tree up! Joining us is independent

:11:52. > :12:01.economist Bronwyn Curtis. Actually, I haven't taken it down!

:12:02. > :12:11.Great to see you as always. Let's start with the big boss of the US

:12:12. > :12:15.central bank, Janet Yellen, she talks of the committee and we saw a

:12:16. > :12:20.change of mind is at the US Federal reserve. The way I think about it,

:12:21. > :12:28.they were talking about four rate hikes a year, approximately. Now I

:12:29. > :12:33.think about it as one rate a hike year for the next four years. Talk

:12:34. > :12:38.about change! So they are worried about the economy. Are they wrote to

:12:39. > :12:42.be worried? I think it's a big change. They've got closer to the

:12:43. > :12:46.market so should they be worried? I think we should all be worried

:12:47. > :12:49.because we either low growth, low inflation ran for a very long time.

:12:50. > :12:54.Bond yields are going to stay low, interest rates stay low, so it's not

:12:55. > :12:59.a pretty picture. The US was nice that was starting to perform. But

:13:00. > :13:05.wait until the end of next week. Nonfarm payrolls. They are coming at

:13:06. > :13:09.the end of next week. It was because they were bad last time that

:13:10. > :13:13.everybody said, it's not good, maybe they'll be better this time and

:13:14. > :13:17.we'll be going up a bit. Sally Watson talk about Brexit but first,

:13:18. > :13:22.will she continued in front of this community today? All bob absolutely,

:13:23. > :13:25.the same message. Give us your take on the mood right now because

:13:26. > :13:30.looking at you, markets are fairly flat. Treading water after a big

:13:31. > :13:38.bounce on Monday. I'm thinking about what George Soros has been saying

:13:39. > :13:42.today. Are you trading on the day -- where you trading on the day we left

:13:43. > :13:49.the RM? Roll I was. Markets hate uncertainty. The ERM was not really

:13:50. > :13:54.about the UK but about Europe and it was a big thing for the UK but not

:13:55. > :14:00.for Europe. This is huge. I've been doing this a long time and I'm with

:14:01. > :14:04.George Soros. The volatility that we will see... Markets hate

:14:05. > :14:10.uncertainty, so 15 or 20% in the sterling going down, I think that's

:14:11. > :14:15.likely. But let's not forget, he is a big Speculator. This kind of

:14:16. > :14:19.market is good for him. They love volatility and that's what we've

:14:20. > :14:22.got, at least until Friday. You are going to come back and tickets to

:14:23. > :14:25.the papers so we'll speak you very shortly. Still to come:

:14:26. > :14:27.Living like a local - we speak to one company that's

:14:28. > :14:29.turned the apatite for authentic home-grown experiences

:14:30. > :14:42.What would be your authentic holiday experience? Out of you when we come

:14:43. > :14:43.back! -- I'll tell you when we come back.

:14:44. > :14:48.You're with Business Live from BBC News.

:14:49. > :14:55.Do we need to say that? It says on the autocue it is two days to go

:14:56. > :14:56.until Britain votes on the EU referendum! Markets are looking

:14:57. > :14:57.jittery. Laith Khalaf, a senior analyst

:14:58. > :15:00.at Hargreaves Lansdown, has been keeping an eye on how

:15:01. > :15:06.investors are behaving Welcome to Business Live. I would

:15:07. > :15:11.imagine from your point of view it is all hands on deck now from now

:15:12. > :15:17.right through until the end of play on Friday. Markets have been really

:15:18. > :15:20.moody. We saw the FTSE rising yesterday on the back of a few polls

:15:21. > :15:23.and you are absolutely right, we are going to see more of that in the

:15:24. > :15:27.coming days because markets are being bombarded with a huge amount

:15:28. > :15:30.of information. They are trying to die just at all and that is going to

:15:31. > :15:39.run through up to the referendum and possibly after it as well.

:15:40. > :15:48.We talk about the pound dropping and markets crashing bla-bla-bla. If we

:15:49. > :15:54.stay in, do we see the opposite? We are not going to see a rise in the

:15:55. > :15:59.quid are we by 15% or 20%? You can tell which direction the markets

:16:00. > :16:02.will go in either outcome either up or down, remain or Brexit. What is

:16:03. > :16:06.really difficult is quantitifying how much. We have seen, you know,

:16:07. > :16:09.reports of the sterling crashing 15%. That could happen, but I don't

:16:10. > :16:16.think anyone really knows whether that's going to be the case. If you

:16:17. > :16:20.are a betting man and we stay in how much does the sterling rise roughly?

:16:21. > :16:24.I have no predictions because that's, you know, it is a real false

:16:25. > :16:29.economy to make predictions like that because no one knows what is

:16:30. > :16:33.going to happen on the day. The context of all we have got a fragile

:16:34. > :16:35.global economy and key to this is the fact that policy makers don't

:16:36. > :16:39.really have any room left because interest rates are so low. So if we

:16:40. > :16:42.get knocked off course in terms of economic growth, there is nothing

:16:43. > :16:45.really that they can do to stimulate the economy anymore.

:16:46. > :16:52.All right, we have got to leave it there. Thank you very much for your

:16:53. > :16:56.prospective. There is plenty, plenty more on our

:16:57. > :17:02.website, but there are other stories out there. Aaron found one. Talking

:17:03. > :17:06.about airline fees, printing a boarding pass, putting an extra bag

:17:07. > :17:11.on. The Civil Aviation Authority are looking at the rules on this to make

:17:12. > :17:18.sure the charges aren't tucked away, hidden. More transparent. More

:17:19. > :17:21.transparent, Sal. So you know what you're paying out.

:17:22. > :17:25.You're watching Business Live. Our top story:

:17:26. > :17:30.The billionaire investor has been wading in on the row over whether

:17:31. > :17:35.the UK should or shouldn't leave the European Union. His view is the

:17:36. > :17:42.pound will sink dramatically on Friday if the outcome is leave.

:17:43. > :17:44.The producers forgot to put that in and you just spoke it off the top of

:17:45. > :17:46.your head. Let's get the inside track now

:17:47. > :17:49.on a business that's trying to turn how we think of taking a holiday

:17:50. > :17:51.on its head. The travel and tourism industry

:17:52. > :17:56.generated $7.2 trillion last year while supporting 284 million

:17:57. > :18:01.across the globe. The sector is dominated by big

:18:02. > :18:04.players such as TUI Travel, Carnival Corp and Marriott

:18:05. > :18:06.International which make billions One company that's trying to shift

:18:07. > :18:10.the industry away from big players and towards the sharing economy

:18:11. > :18:12.is I Like Local. The business which is based

:18:13. > :18:17.on the sharing economy allows people to book accommodation and activities

:18:18. > :18:20.around the world with more than 450 experiences available

:18:21. > :18:22.in 15 countries. What they say separates them

:18:23. > :18:27.from their competitors is that 100% of the money asked by the locals

:18:28. > :18:30.for their activities is directly paid to them, ensuring

:18:31. > :18:36.that the local economy benefits. With me now is Sanne Meijboomm,

:18:37. > :18:50.the Founder of I Like Local. Great to have you with us in the

:18:51. > :18:52.studio. This started because you are a traveller, I believe, a little

:18:53. > :18:56.birdie told me and when you travelled you like to do the local

:18:57. > :19:02.thing and was that hard to do when you didn't have something like what

:19:03. > :19:07.you created? Well, like I travelled like over 42 countries and what I

:19:08. > :19:11.noticed and it was the reason why I start this business and I got this

:19:12. > :19:20.idea was that my best experiences were the encounters with local

:19:21. > :19:25.people. So at that time I was around 25, I still had loads of time to

:19:26. > :19:32.travel and so for me at that point it was not really difficult to find

:19:33. > :19:40.the experiences so I had loads of time. I started I Like Local mainly

:19:41. > :19:47.targeting people like women between 25, 35 who already have like

:19:48. > :19:52.experience with travelling but they didn't have the sufficient time to

:19:53. > :19:56.really start exploring. Just explain then how this website works. There

:19:57. > :20:01.are so many travel websites out there. True. There is huge

:20:02. > :20:04.competition. You have got your niche area. You are providing a local

:20:05. > :20:08.experience to people. We have just said that the people who provide

:20:09. > :20:11.that experience get all the money. So just explain how your website

:20:12. > :20:17.works and how you generate profits? Yeah. So the idea is that I really

:20:18. > :20:21.wanted to create like unique authentic experience for travellers

:20:22. > :20:26.because that's what something I noticed myself, but also like the

:20:27. > :20:31.research on more than 50 travellers. I Like Local is like a sustainable

:20:32. > :20:35.travel platform where travellers can book authentic experiences... But

:20:36. > :20:39.how do you make money? That's my question!

:20:40. > :20:45.It is a business programme, come on, how do you make your money? It works

:20:46. > :20:49.similar to Airbnb where Airbnb takes from both sides from travellers and

:20:50. > :20:50.hosts. We have the intention to support local communities as well.

:20:51. > :22:43.So we don't We appreciate your time.

:22:44. > :22:46.As part of our series where we've been asking small business leaders

:22:47. > :22:53.about their choice when it comes to Europe, here is the latest view from

:22:54. > :22:55.a shoemaker in Portugal. I am the managing director. Ighalo Portuguese

:22:56. > :23:01.shoemaker with a brand of 175 years. Our products are old and crafted

:23:02. > :23:04.with the best materials. In the last years we

:23:05. > :23:11.sold abroad in Japan, the United States of America,

:23:12. > :23:16.Germany and other countries. The recession in Portugal is very

:23:17. > :23:20.deep and it is difficult The Portuguese people don't have

:23:21. > :23:27.enough money to buy our shoes. We are planning to introduce our

:23:28. > :23:30.shoes in the UK market. It is one of the biggest

:23:31. > :23:33.markets in Europe. If the UK left the European Union

:23:34. > :23:36.it is difficult for us and for the Portuguese industry

:23:37. > :23:40.because there are additional costs and the customer procedures

:23:41. > :24:00.will cause delays in the exports. There are plenty more views on our

:24:01. > :24:04.website. We've talked to so many bosses about this.

:24:05. > :24:13.Bronwyn is back. Let's get into the papers. This is in the Insider. A

:24:14. > :24:20.start-up bank has raised ?1.5 million, just under $2.5 million, to

:24:21. > :24:25.build a bank for the young ones. The snap chat generation. Younger than

:24:26. > :24:29.us! It is interesting because they talk about it as a bank but they are

:24:30. > :24:33.not going for a full banking licence because most of the banking services

:24:34. > :24:37.they think can be done are prepay card but the reason they got off the

:24:38. > :24:41.ground was because they could provide overseas students with

:24:42. > :24:45.opening a bank really quickly, quicker than normal banks, and I

:24:46. > :24:52.think that's the big thing. That's their selling point. Plus they are

:24:53. > :24:58.going to give discounts on going to services and copies and all of that.

:24:59. > :25:04.Things are students like to do. It is another example of a start-up

:25:05. > :25:08.bank, a bank that is just for smart devices... We have the chief

:25:09. > :25:12.executive of Mondo on Business Live. Are they disrupt us, do you think?

:25:13. > :25:18.Are the big bounce you work for over the years worried about this? -- big

:25:19. > :25:23.banks. I think very are because they need to be on the phones and it is

:25:24. > :25:25.much harder. In terms of providing things like mortgages and overdrafts

:25:26. > :25:34.and all of that sort of thing, the big banks are there and these are

:25:35. > :25:39.long way from Matt. Would you go for sharing holiday?

:25:40. > :25:43.We have known you for a long time. Working on a farm in the

:25:44. > :25:48.Philippines, I think not. I work hard enough because I go out sailing

:25:49. > :25:53.and I go out and I worked really hard. My husband wouldn't burn an

:25:54. > :25:59.electric winch because he thought it was better than paying out for the

:26:00. > :26:02.gym so that's what I do. Thank you, sailor Bronwyn Curtis. We

:26:03. > :26:05.will see you tomorrow.