21/06/2016 BBC Business Live


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This is Business Live from BBC News with Aaron Heslehurst


With just two days until the UK votes


on its EU membership, all eyes are on the pound.


The billionaire investor George Soros says it will sink


like a stone if the UK leaves, but those supporting a Brexit


Live from London, that's our top story


the EU would lead to the pound dropping by at least


They say he was wrong on joining the Euro


Will be looking at all sides of the argument.


Walmart seeks to make inroads in China.


The global retail giant is going to give away its struggling


website in the country in exchange for a 5% stake in China's


And the markets after that over 3% climb for most major markets, today


they have dipped slightly. So what's the feeling on the trading floors


today in Europe? We will talk you through that.


And do you fancy using your holiday this year to work on a farm, teach


It might not be up your street but it's now a growing area


We speak to the woman who's turned experiences


So, on that note, when you travel is that your idea


volunteering at a school in India, taking a cooking class in Nepal


or even helping out on a farm in the Philippines?


Let us know what you think - just use the hashtag #bbcbizlive


Do send us your suggestions. I'm sure you've got some good ideas for


holiday for Aaron. Let's talk about what is going on as far as the UK


referendum is concerned today. The latest add his voice to the debate


is George Soros, the investor who made


$1 billion by betting against the pound on Black Wednesday


in 1992, who has warned of a Black Friday if Britain votes


to leave the European Union. Soros warns sterling could drop


in value by more than 20% and says voters are "grossly underestimating"


the risks of a Brexit. Vote Leave says Mr Soros


is a long-standing advocate of giving the EU further control


of Britain's finances. Yesterday the pound jumped the most


against the dollar in seven years, the likelihood of the UK


leaving the European Union. The currency rose by 2.43%


after several polls suggested that the Leave campaign had


lost its lead in the race, with both The former boss of Tesco Sir Terry


Leahy and former head of Marks and Spencer Mark Bolland


have also waded into the debate with the support of the shop


workers' union Usdaw. They claim households


would be at least ?584 worse off a year, because of an expected


fall in the value of sterling dismissed the warnings,


claiming EU membership has put up Supporters of a Brexit also argue


that a weaker pound would benefit the UK because it would make


Britain's exports cheaper. lets get more on this. Tim Martin is


chairman of the JD Wetherspoon pub chain. He is a vocal proponent of


leaving the EU. He joins us now from Exeter to talk all things EU


referendum. Great to have you on the programme. I'm trying to understand


why you are so for leaving because, for example, if the pundits have it


right, if the average UK household would be done something like 550


quid, that's 550 quid less to spend in your pubs. That's a voodoo


economic said and George Soros calls a Black Wednesday but, of course, as


most viewers will know, the name was changed to white Wednesday in 1992.


We got kicked out of the exchange rate mechanism, the pound was


overvalued and we started the magnificent recovery which lasted


for years and defied those who suggested we should stay in the


exchange rate mechanism. If we leave the EU, which is undemocratic and


unsuccessful, with great problems in Greece, Portugal and elsewhere, the


first thing that will happen is that in our pubs, food prices will go


down because a lot of our food is bought from outside the EU. All our


wine is bought from outside the EU and most of it has a tariff, so


we'll lose the tariffs. Sorry to interrupt but if the UK leaves, as


no doubt many will say and we know it, sterling will drop. Some say


50%, some say 20 percentage top that's going to make importing goods


more expensive. I just remember the huge problems in the early 1990s


when the pound was going up. It was supposed to be our biggest problem


and it was creating enormous problems the manufacturing industry.


There are certain effects if the pound goes up or down, it's a


floating currency. It goes up and down all the time, so does the stock


market. And I don't think that you can say that that's the reason.


Right out of the blue, the pound is going to go down? That's bad. Where


has this come from? It's ridiculous. From your perspective... Sorry, this


is Sally Bond at joining in. Many of your punters, I'm sure, have been


talking to you about this referendum, and gauging the mood


where you work, what are they saying to you? I think that they are


starting to get their minds around the different issues. The key issue


with the EU is that it's not democratic. It's increasingly


undemocratic and if you look around the world, which I think most people


now appreciate, Australia, New Zealand, North America, South Korea,


it's always the democracies which do better, and since the EU has become


more centralised and it has started to have a lot of economic problems,


we are not talking about a very successful area. The further you are


away from the centre of the EU, the more successful your economy is. The


great problem is, we have to have this dogfight to stay out of the


euro, not to have... To have opt outs on various things, to avoid a


tampon tax. So it's not a very successful area. We need democracy,


where laws are made in this country, like New Zealand, Australia, North


America. It's not anything to profound. We appreciate your time.


Thank you, mate, for joining us. Talk to you again sometime.


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


other business news. Former Volkswagen boss


Martin Winterkorn is under investigation in Germany


for alleged market manipulation. German prosecutors have


accused Mr Winterkorn and another former board member


of withholding information from investors about


VW's emissions scandal. Mr Winterkorn resigned last


September, following revelations the firm cheated US diesel


car emissions tests. But VW said the prosecutors have


offered "no new facts The aviation industry could be one


of the biggest beneficiaries of changes to India's strict


foreign investment rules. The government has announced it


will allow 100% foreign ownership of airlines and of some


defence businesses too. And for foreign firms


trying to get into retail, there's respite from a rule that


required 30% of what they sold to be Let's take a look round the world


at what's business stories We learnt today that the US


retail giant Walmart is rethinking its digital strategy,


to tap into the Chinese market. Mariko Oi has been


following the story. Walmart that biggest retailer in the


world looking at the biggest growth area in the world.


Indeed. The company's name that you were looking at was Yihaodian, which


is the online company that Walmart has in China. It targets wealthy


customers, especially women, selling groceries, but it has really been


struggling, so it has announced that it is going to sell that unit to the


country's second-biggest be, is company, called Jaidee .com. In


return, Walmart will have a five per stake in that company and will be


listed as a preferred seller. So the company hopes that this deal would


give them greater exposure in other parts of China and investors seem to


like the plan as shares of Walmart are rising on Wall Street after the


news. Thanks a lot. Interesting story to


keep alive, what Walmart is up to in China.


Let's show you how markets fared in Asia. The main market in Japan by


almost 1%. Hong Kong followed after a good night on Wall Street. This


was on the back of reports showing that the Remain camp was seemingly


ahead but now the polls are too close to call yet again. We all know


how reliable polls are, don't we? But that's how things have been


going in Asia. The yen strengthening a little. Some nerds out there. And


this is Europe, really flat and fairly mixed. Massive jumps


yesterday. If you look at the closing numbers for Europe, 3.5%


higher for France, three percentile for London. Quite a big marked


bounce on the market on Monday so no surprise they are flat. We will talk


some more about the market sentiment in a few minutes.


Samira Hussain has the details about what's ahead on Wall Street today.


On Tuesday, chair of the US Federal reserve Janet Yellen will be


This is Miss Yellen's semiannual appearance on Capitol Hill.


She will be delivering remarks on monetary policy and then


answer questions from congressional leaders.


Separately, Miss Yellen and the US Treasury Secretary Jack Lew


will attend the opening meeting of the Financial Stability


The Fsoc, as it is often referred to, is responsible for monitoring


And in other news, FedEx will be reporting earnings.


Investors will want to hear all about its recent acquisition


of the Dutch company TNT and, of course, preparations for this


Hard to believe we're talking about Christmas when summer has only


Good on you! We already thinking about Christmas?


Are you thinking about Christmas? You are kidding me! I will pop my


tree up! Joining us is independent


economist Bronwyn Curtis. Actually, I haven't taken it down!


Great to see you as always. Let's start with the big boss of the US


central bank, Janet Yellen, she talks of the committee and we saw a


change of mind is at the US Federal reserve. The way I think about it,


they were talking about four rate hikes a year, approximately. Now I


think about it as one rate a hike year for the next four years. Talk


about change! So they are worried about the economy. Are they wrote to


be worried? I think it's a big change. They've got closer to the


market so should they be worried? I think we should all be worried


because we either low growth, low inflation ran for a very long time.


Bond yields are going to stay low, interest rates stay low, so it's not


a pretty picture. The US was nice that was starting to perform. But


wait until the end of next week. Nonfarm payrolls. They are coming at


the end of next week. It was because they were bad last time that


everybody said, it's not good, maybe they'll be better this time and


we'll be going up a bit. Sally Watson talk about Brexit but first,


will she continued in front of this community today? All bob absolutely,


the same message. Give us your take on the mood right now because


looking at you, markets are fairly flat. Treading water after a big


bounce on Monday. I'm thinking about what George Soros has been saying


today. Are you trading on the day -- where you trading on the day we left


the RM? Roll I was. Markets hate uncertainty. The ERM was not really


about the UK but about Europe and it was a big thing for the UK but not


for Europe. This is huge. I've been doing this a long time and I'm with


George Soros. The volatility that we will see... Markets hate


uncertainty, so 15 or 20% in the sterling going down, I think that's


likely. But let's not forget, he is a big Speculator. This kind of


market is good for him. They love volatility and that's what we've


got, at least until Friday. You are going to come back and tickets to


the papers so we'll speak you very shortly. Still to come:


Living like a local - we speak to one company that's


turned the apatite for authentic home-grown experiences


What would be your authentic holiday experience? Out of you when we come


back! -- I'll tell you when we come back.


You're with Business Live from BBC News.


Do we need to say that? It says on the autocue it is two days to go


until Britain votes on the EU referendum! Markets are looking


jittery. Laith Khalaf, a senior analyst


at Hargreaves Lansdown, has been keeping an eye on how


investors are behaving Welcome to Business Live. I would


imagine from your point of view it is all hands on deck now from now


right through until the end of play on Friday. Markets have been really


moody. We saw the FTSE rising yesterday on the back of a few polls


and you are absolutely right, we are going to see more of that in the


coming days because markets are being bombarded with a huge amount


of information. They are trying to die just at all and that is going to


run through up to the referendum and possibly after it as well.


We talk about the pound dropping and markets crashing bla-bla-bla. If we


stay in, do we see the opposite? We are not going to see a rise in the


quid are we by 15% or 20%? You can tell which direction the markets


will go in either outcome either up or down, remain or Brexit. What is


really difficult is quantitifying how much. We have seen, you know,


reports of the sterling crashing 15%. That could happen, but I don't


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


are a betting man and we stay in how much does the sterling rise roughly?


I have no predictions because that's, you know, it is a real false


economy to make predictions like that because no one knows what is


going to happen on the day. The context of all we have got a fragile


global economy and key to this is the fact that policy makers don't


really have any room left because interest rates are so low. So if we


get knocked off course in terms of economic growth, there is nothing


really that they can do to stimulate the economy anymore.


All right, we have got to leave it there. Thank you very much for your


prospective. There is plenty, plenty more on our


website, but there are other stories out there. Aaron found one. Talking


about airline fees, printing a boarding pass, putting an extra bag


on. The Civil Aviation Authority are looking at the rules on this to make


sure the charges aren't tucked away, hidden. More transparent. More


transparent, Sal. So you know what you're paying out.


You're watching Business Live. Our top story:


The billionaire investor has been wading in on the row over whether


the UK should or shouldn't leave the European Union. His view is the


pound will sink dramatically on Friday if the outcome is leave.


The producers forgot to put that in and you just spoke it off the top of


your head. Let's get the inside track now


on a business that's trying to turn how we think of taking a holiday


on its head. The travel and tourism industry


generated $7.2 trillion last year while supporting 284 million


across the globe. The sector is dominated by big


players such as TUI Travel, Carnival Corp and Marriott


International which make billions One company that's trying to shift


the industry away from big players and towards the sharing economy


is I Like Local. The business which is based


on the sharing economy allows people to book accommodation and activities


around the world with more than 450 experiences available


in 15 countries. What they say separates them


from their competitors is that 100% of the money asked by the locals


for their activities is directly paid to them, ensuring


that the local economy benefits. With me now is Sanne Meijboomm,


the Founder of I Like Local. Great to have you with us in the


studio. This started because you are a traveller, I believe, a little


birdie told me and when you travelled you like to do the local


thing and was that hard to do when you didn't have something like what


you created? Well, like I travelled like over 42 countries and what I


noticed and it was the reason why I start this business and I got this


idea was that my best experiences were the encounters with local


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


travel and so for me at that point it was not really difficult to find


the experiences so I had loads of time. I started I Like Local mainly


targeting people like women between 25, 35 who already have like


experience with travelling but they didn't have the sufficient time to


really start exploring. Just explain then how this website works. There


are so many travel websites out there. True. There is huge


competition. You have got your niche area. You are providing a local


experience to people. We have just said that the people who provide


that experience get all the money. So just explain how your website


works and how you generate profits? Yeah. So the idea is that I really


wanted to create like unique authentic experience for travellers


because that's what something I noticed myself, but also like the


research on more than 50 travellers. I Like Local is like a sustainable


travel platform where travellers can book authentic experiences... But


how do you make money? That's my question!


It is a business programme, come on, how do you make your money? It works


similar to Airbnb where Airbnb takes from both sides from travellers and


hosts. We have the intention to support local communities as well.


So we don't We appreciate your time.


As part of our series where we've been asking small business leaders


about their choice when it comes to Europe, here is the latest view from


a shoemaker in Portugal. I am the managing director. Ighalo Portuguese


shoemaker with a brand of 175 years. Our products are old and crafted


with the best materials. In the last years we


sold abroad in Japan, the United States of America,


Germany and other countries. The recession in Portugal is very


deep and it is difficult The Portuguese people don't have


enough money to buy our shoes. We are planning to introduce our


shoes in the UK market. It is one of the biggest


markets in Europe. If the UK left the European Union


it is difficult for us and for the Portuguese industry


because there are additional costs and the customer procedures


will cause delays in the exports. There are plenty more views on our


website. We've talked to so many bosses about this.


Bronwyn is back. Let's get into the papers. This is in the Insider. A


start-up bank has raised ?1.5 million, just under $2.5 million, to


build a bank for the young ones. The snap chat generation. Younger than


us! It is interesting because they talk about it as a bank but they are


not going for a full banking licence because most of the banking services


they think can be done are prepay card but the reason they got off the


ground was because they could provide overseas students with


opening a bank really quickly, quicker than normal banks, and I


think that's the big thing. That's their selling point. Plus they are


going to give discounts on going to services and copies and all of that.


Things are students like to do. It is another example of a start-up


bank, a bank that is just for smart devices... We have the chief


executive of Mondo on Business Live. Are they disrupt us, do you think?


Are the big bounce you work for over the years worried about this? -- big


banks. I think very are because they need to be on the phones and it is


much harder. In terms of providing things like mortgages and overdrafts


and all of that sort of thing, the big banks are there and these are


long way from Matt. Would you go for sharing holiday?


We have known you for a long time. Working on a farm in the


Philippines, I think not. I work hard enough because I go out sailing


and I go out and I worked really hard. My husband wouldn't burn an


electric winch because he thought it was better than paying out for the


gym so that's what I do. Thank you, sailor Bronwyn Curtis. We


will see you tomorrow.


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