Browse content similar to 19/07/2016. Check below for episodes and series from the same categories and more!
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This is Business Live from BBC News, with Ben Bland and Sally Bundock. | :00:00. | :00:00. | |
No buyer and the losses are widening - | :00:07. | :00:07. | |
so what now for Yahoo as it attempts to woo bidders | :00:08. | :00:10. | |
Live from London, that's our top story | :00:11. | :00:13. | |
Yahoo has been courting buyers for its core internet | :00:14. | :00:33. | |
business for months, but investors will have to wait | :00:34. | :00:35. | |
a little bit longer for details of a potential deal. | :00:36. | :00:39. | |
We'll guide you through the highs and lows of | :00:40. | :00:41. | |
Shares in Japan's Softbank fall after it announces a $32 billion | :00:42. | :00:49. | |
offer for chip designer ARM holdings. | :00:50. | :00:52. | |
We'll cross over to Asia for the latest. | :00:53. | :01:01. | |
The European markets all opening slightly down, tracking losses | :01:02. | :01:05. | |
overnight from most of the Asian markets. That Softbank slide in | :01:06. | :01:11. | |
shares, a tempest and fall, though Nintendo doing pretty well on the | :01:12. | :01:14. | |
success of its Pokemon Go game. One man's trash is | :01:15. | :01:18. | |
another man's treasure! Later in the programme, | :01:19. | :01:20. | |
we'll speak to the boss of a company that helps businesses recycle | :01:21. | :01:23. | |
their furniture and fittings. From one technology | :01:24. | :01:28. | |
pioneer to another. We've spoken about Yahoo | :01:29. | :01:30. | |
but the streaming service Netflix also reported | :01:31. | :01:32. | |
disappointing numbers - apparently subscribers are not happy | :01:33. | :01:34. | |
with the price increase. We want to know, are you switching | :01:35. | :01:48. | |
from Netflix? If so, to whom and why? Get in touch using the hashtag | :01:49. | :01:52. | |
on-screen. The internet firm Yahoo | :01:53. | :01:58. | |
saw its losses widen to $440 million in the three months | :01:59. | :02:01. | |
to the end of June. This was expected but investors | :02:02. | :02:05. | |
were hoping for an update on the company's plans | :02:06. | :02:09. | |
to sell its core search and On that subject, Yahoo | :02:10. | :02:12. | |
revealed nothing. Over the years, shareholders have | :02:13. | :02:18. | |
had a roller-coaster ride. Yahoo's chief executive, Marissa | :02:19. | :02:22. | |
Mayer, was appointed in 2012. It was hoped that she'd revive | :02:23. | :02:25. | |
the business's fortunes. Acquisitions were Ms | :02:26. | :02:30. | |
Mayer's weapon of choice. Since her appointment, Yahoo has | :02:31. | :02:33. | |
bought more than 45 companies, including the micro-blogging website | :02:34. | :02:37. | |
Tumblr, for $1.1 billion. In the two years after she took | :02:38. | :02:42. | |
over, Yahoo's share But in 2014, things | :02:43. | :02:45. | |
started to change. The company's share price took | :02:46. | :02:50. | |
a tumble after the Chinese retailing Yahoo owns a massive 15% stake | :02:51. | :02:54. | |
in the business, so when Alibaba's shares began to sink, | :02:55. | :03:01. | |
it took Yahoo down with it. So Yahoo's next plan | :03:02. | :03:05. | |
of action was to sell This move was announced earlier this | :03:06. | :03:08. | |
year, with several big tech names But still no news | :03:09. | :03:12. | |
of a concrete offer. With me now is Richard Kramer, | :03:13. | :03:25. | |
senior analyst and founder of London-based equity research firm | :03:26. | :03:30. | |
Arete Research. What do you make of the fact there | :03:31. | :03:36. | |
is no news? It's not surprising because it's a long sale process | :03:37. | :03:39. | |
that they've been undergoing. What we saw last night was the | :03:40. | :03:42. | |
fundamentals of the business continuing to deteriorate, the sales | :03:43. | :03:47. | |
down 20%, paid clicks down 24 present, with perhaps the only | :03:48. | :03:50. | |
bright spot that Yahoo managed to bright spot that Yahoo managed to | :03:51. | :03:53. | |
sell some assets like real estate and get a large refund. It is not | :03:54. | :03:58. | |
great when you are trying to sell your core assets that your numbers | :03:59. | :04:00. | |
keep going through during the discussion process with, let's say, | :04:01. | :04:06. | |
AT authorising? In some ways, it is better that the poor numbers are | :04:07. | :04:14. | |
in the market. It brings price down. It is not good for Marissa Mayer or | :04:15. | :04:20. | |
those who are trying to sell. Those who are looking at this asset, for | :04:21. | :04:24. | |
all the years of effort to boot a new business inside Yahoo from their | :04:25. | :04:29. | |
declining legacy businesses would be under no illusions whatsoever about | :04:30. | :04:34. | |
the state of business. Nasty write-downs after the purchase, | :04:35. | :04:38. | |
that's what you mean? In a way, so that is clearing the decks to make | :04:39. | :04:41. | |
it easier for an acquiring not to have to do those same things. One of | :04:42. | :04:46. | |
the other things Yahoo announced was that they had counted for about 20% | :04:47. | :04:52. | |
over the last 12 months. -- their head count had fallen. If the new | :04:53. | :04:57. | |
acquirer takes over, they may have to let people go so it is easy if | :04:58. | :05:02. | |
Yahoo does that. Where did they go wrong? Is there anything you think | :05:03. | :05:04. | |
they could have done differently to be in a better position? You have to | :05:05. | :05:08. | |
go back many years but the reality in the internet space right now is | :05:09. | :05:12. | |
that two companies are effectively sucking all the oxygen out of the | :05:13. | :05:16. | |
room, Facebook and Google. This year Facebook will spend more on R than | :05:17. | :05:19. | |
Yahoo has in sales and Google twice to three times as much, so, like | :05:20. | :05:24. | |
many markets, you see that there are a couple of dominant players that | :05:25. | :05:27. | |
are merged and those that are not able to keep up with the pace or get | :05:28. | :05:31. | |
embroiled, as Yahoo did, in internal squabbles, get left behind. So the | :05:32. | :05:36. | |
outlook for Yahoo, it will sell its core assets, we assume that will | :05:37. | :05:40. | |
happen, and if so who do you think the likely buyer will because aurora | :05:41. | :05:45. | |
number of interested parties, two large US telcos, the rise in and | :05:46. | :05:50. | |
AT The real question now is whether Yahoo will just sell its | :05:51. | :05:53. | |
call on whether someone will make a bid for the entire property, which | :05:54. | :05:59. | |
includes stakes in other companies, and try to mitigate the tax | :06:00. | :06:02. | |
liability with other assets they might have. We shall watch every | :06:03. | :06:05. | |
twist and turned it off thank you for coming in and giving us your | :06:06. | :06:10. | |
take on the very latest. Let's take a good some other stories... -- a | :06:11. | :06:14. | |
look at. Shares in the web streaming | :06:15. | :06:16. | |
giant Netflix have fallen in after-hour trading, | :06:17. | :06:18. | |
after the firm said it added fewer The company signed up 1.7 million | :06:19. | :06:21. | |
new customers in the three months to the end of June - | :06:22. | :06:25. | |
well short of the 2.5 The firm has blamed | :06:26. | :06:27. | |
the disappointing performance on cancellations by customers | :06:28. | :06:30. | |
facing a price increase. Fiat Chrysler is being investigated | :06:31. | :06:33. | |
by US regulators over the way it reports quarterly | :06:34. | :06:36. | |
and annual results. The company says it records revenues | :06:37. | :06:38. | |
based on shipments to dealers, rather than direct sales | :06:39. | :06:44. | |
to car buyers. Fiat Chrysler recorded a 7% rise | :06:45. | :06:46. | |
in its monthly sales in June - its best result for that month | :06:47. | :06:49. | |
since 2005. The former UK finance minister, | :06:50. | :07:03. | |
Chancellor George Osborne, has given a speech outlining the philosophy | :07:04. | :07:07. | |
underpinning his time at the Treasury. The speech is seen by some | :07:08. | :07:12. | |
as an attempt to defend his record, perhaps pointing to his desire to | :07:13. | :07:15. | |
return to front line politics in the future. | :07:16. | :07:19. | |
A story dominating our web page today is this one about BT, the main | :07:20. | :07:29. | |
phone line operator in the UK. MPs are warning BT faces having to split | :07:30. | :07:34. | |
up unless it sorts out its Openreach division, which is responsible for | :07:35. | :07:37. | |
rolling out superfast broadband across the UK. How this is operated | :07:38. | :07:43. | |
and how it is provided in this country has been looked into by | :07:44. | :07:48. | |
politicians. The MPs say they want more transparency and service | :07:49. | :07:54. | |
improvements. They conclude that BT is significantly under investing in | :07:55. | :07:58. | |
Openreach. Lots more information on that online. Let's talk about a | :07:59. | :08:04. | |
story that first came to our attention this time yesterday, that | :08:05. | :08:08. | |
being Softbank of Japan snapping up a RM holdings of the UK. | :08:09. | :08:13. | |
Sarah Toms is in Singapore and has been following the story. | :08:14. | :08:17. | |
Hello. It was one of the biggest steals of the year and it came on a | :08:18. | :08:25. | |
public holiday in Japan, so today Japanese investors have had their | :08:26. | :08:28. | |
first chance to react to the news and they're questioning ARM's hefty | :08:29. | :08:34. | |
$32 billion priced at. Shares in the Japanese tech and telecoms company | :08:35. | :08:39. | |
plunged a whopping 10% today and ARM is the crown jewel of the UK tech | :08:40. | :08:44. | |
industry, so what's the problem? Softbank is already $100 billion in | :08:45. | :08:50. | |
debt and this purchase is piling on even more. The company has raised | :08:51. | :08:53. | |
some cash over the past few months and disposed of some of its assets, | :08:54. | :08:58. | |
like its stake in Ali baba. Many analysts had been hoping this would | :08:59. | :09:02. | |
be used to reduce some of that debt but instead it has gone to pay for | :09:03. | :09:06. | |
this acquisition and, if the company's going to spend that much | :09:07. | :09:09. | |
on an investment, it had better start paying off soon. | :09:10. | :09:14. | |
moment. We going to try to show you moment. We going to try to show you | :09:15. | :09:21. | |
how the markets start the morning on Tuesday but our systems have been | :09:22. | :09:24. | |
playing up. I was hoping they're going to appear but unfortunately | :09:25. | :09:28. | |
not. Let me tell you, though, all European markets are opening | :09:29. | :09:32. | |
slightly down, tracking losses from Asia. Most of the markets in Asia | :09:33. | :09:37. | |
ending their trading day down, although the Nick Cave being buoyed | :09:38. | :09:40. | |
off the back of the success of off the back of the success of | :09:41. | :09:45. | |
Pokemon Go, the game that seems to have taken everyone's attention. We | :09:46. | :09:50. | |
will be looking ahead to what is on Wall Street. | :09:51. | :09:54. | |
And Michelle Fleury has the details about what's ahead | :09:55. | :09:56. | |
Wall Street is poised for more bank earnings. Colburn sucks aboard | :09:57. | :10:03. | |
profits this Tuesday and is expected to do well, helped in part by | :10:04. | :10:07. | |
improved trading activity, thanks to the Brexit vote on the volatility we | :10:08. | :10:13. | |
saw in the financial markets. So far the results on the big banks have | :10:14. | :10:16. | |
been better than expected after a very weak start of the year. | :10:17. | :10:19. | |
Microsoft will offer a glimpse into another corner of the economy, the | :10:20. | :10:24. | |
tech sector. Growth in its cloud business is likely to offset the | :10:25. | :10:29. | |
continuing slide in PC sales. PCs often come preloaded with windows | :10:30. | :10:33. | |
operating system. And Johnson Johnson is likely to see profits | :10:34. | :10:38. | |
boosted by its drugs business. One unknown, though, this corporate | :10:39. | :10:40. | |
earnings season is what is the impact of foreign exchange rates? | :10:41. | :10:44. | |
They've been fairly volatile since the Brexit vote. Given the strong | :10:45. | :10:47. | |
dollar, will that hurt revenue growth? | :10:48. | :10:52. | |
That's Michelle in New York and we are joined by Richard Fletcher, | :10:53. | :10:57. | |
business editor of the Times. Most see you. Great to have a human | :10:58. | :11:01. | |
being. The technology is falling around us! -- nice to see you. Then | :11:02. | :11:09. | |
touching on Softbank, as was Sarah in Singapore. It is quite | :11:10. | :11:12. | |
phenomenal, this story, but no surprise the shares are down for | :11:13. | :11:16. | |
Softbank. Japanese markets closed yesterday as the news leaked out | :11:17. | :11:24. | |
overnight, so this was the first chance for Japanese investors to | :11:25. | :11:27. | |
give their verdict. The fall in the share price is not so much about the | :11:28. | :11:30. | |
deal but about the fact that in recent months, Softbank has sold a | :11:31. | :11:35. | |
number of assets, a stake in Ali baba, other assets, raised a lot of | :11:36. | :11:38. | |
cash and shareholders had rather been hoping that some of that would | :11:39. | :11:42. | |
go back to them and some of it would go to pay off some of Softbank's | :11:43. | :11:46. | |
debts so I think this share price fall is not a verdict on the deal | :11:47. | :11:49. | |
but about disappointment they are not going to get some of that money | :11:50. | :11:53. | |
back and rather than decreasing its debts, it looks like Softbank is | :11:54. | :11:58. | |
going to add to them. We saw most of the Asian markets closing down at | :11:59. | :12:00. | |
the end of the trading day, though the Nick Haig up, seeming to be | :12:01. | :12:07. | |
pushed upwards by the success of Nintendo and the almost unstoppable | :12:08. | :12:11. | |
march of Pokemon, Crowe go. A quarter of the shares posted on the | :12:12. | :12:18. | |
Tokyo board were Nintendo shares. It has been an amazing few weeks for | :12:19. | :12:24. | |
Nintendo. If you have kids my age, you will know that this is an | :12:25. | :12:29. | |
absolute craze and they have spent the whole weekend chasing Pokemon. | :12:30. | :12:34. | |
What is it all about? I know the shares have gone bananas for a week | :12:35. | :12:37. | |
and a bit now to adopt what do you actually do? You asking the wrong | :12:38. | :12:42. | |
person but you have to chase by come on, collect them and exercise them. | :12:43. | :12:45. | |
I downloaded it but it took up too much space on my phone so I deleted | :12:46. | :12:50. | |
it. The kids love it and they go out and they all walking. You have to go | :12:51. | :12:55. | |
into the real world and catch them. Nintendo now has a bigger market cap | :12:56. | :13:04. | |
on Sony and also Netflix. It is now larger and it is having an amazing | :13:05. | :13:13. | |
run. Richard will be back later. There must be is the editor about | :13:14. | :13:16. | |
it. I was with some friends I haven't seen the ages halfway | :13:17. | :13:19. | |
through the conversation, one of them started chasing Pokemon. It has | :13:20. | :13:21. | |
got too much! Out with the old and in with | :13:22. | :13:25. | |
the new - we'll take a look at the recycling platform | :13:26. | :13:29. | |
which helps businesses deal with You're with Business Live from BBC | :13:30. | :13:31. | |
News. Let's take a look at how living | :13:32. | :13:40. | |
studies are changing in the UK. A new report, published today, | :13:41. | :13:43. | |
says that poverty is not entirely Robert Joyce is from the Institute | :13:44. | :13:45. | |
for Fiscal Studies and is He joins us now from | :13:46. | :13:51. | |
the BBC Newsroom. Welcome to the programme. Just tell | :13:52. | :14:03. | |
us what you found. I understand those who are pensioners now are | :14:04. | :14:08. | |
probably net off at the moment? Yes, so one of the most I can friends in | :14:09. | :14:12. | |
terms of how body has changed is that it is much less about | :14:13. | :14:15. | |
worklessness than it used to be, partly because of good news stories | :14:16. | :14:23. | |
and much less unemployment. But it is also partly about bad news | :14:24. | :14:26. | |
stories, which is that for those in work, wages have stagnated, so the | :14:27. | :14:31. | |
problem of poverty is now much more about working households on low | :14:32. | :14:33. | |
earnings than about workless households. What sort of measures | :14:34. | :14:37. | |
does the government need to look at doing to try to tackle this gap that | :14:38. | :14:43. | |
is opening up? In the short run, one thing it is buying to do is to raise | :14:44. | :14:47. | |
the minimum wage quite aggressively. That may well help the number of low | :14:48. | :14:50. | |
earners but it does come with risks for things like the number of people | :14:51. | :14:55. | |
that employers choose to employ. In the long run, for sustainable wage | :14:56. | :14:59. | |
growth, we need productivity growth, we need to produce more with every | :15:00. | :15:02. | |
hour that we work. That's something we've been doing very badly recently | :15:03. | :15:07. | |
so it does come back to things I priced investments in infrastructure | :15:08. | :15:09. | |
and skills and education policy. Robert Joyce, thanks very much. | :15:10. | :15:19. | |
It is a very difficult square to circle as it were. Most governments | :15:20. | :15:24. | |
in the developed world are facing that problem of those who are in | :15:25. | :15:30. | |
retirement now, have probably got a better future ahead of them than | :15:31. | :15:33. | |
those retiring in their latter years. The report from the | :15:34. | :15:40. | |
Resolution Foundation about the mill lendials about the first to earn | :15:41. | :15:43. | |
less than the generation before. There is a lot more on the story we | :15:44. | :15:49. | |
mentioned about BT and the MPs conclusion that Open Reach has not | :15:50. | :15:52. | |
been invested in enough. There is much more work to be done. This lady | :15:53. | :15:57. | |
here is the Chief Executive of the TalkTalk. A guest here on Business | :15:58. | :16:03. | |
Live. She is calling on Open Reach chiefs, she is saying, it is not fit | :16:04. | :16:06. | |
for purpose. A lot more about what she has to say about that and what | :16:07. | :16:10. | |
MPs concluded on the Business Live page. | :16:11. | :16:18. | |
You're watching Business Live, our top story, the internet giant | :16:19. | :16:20. | |
Yahoo reports widening losses as it struggles to keep up | :16:21. | :16:23. | |
The California-based company is yet to provide further details | :16:24. | :16:26. | |
on a potential buyer for its "core" internet business. | :16:27. | :16:30. | |
A quick look at how markets are faring. | :16:31. | :16:36. | |
The European markets are opening down slightly this morning. We'll | :16:37. | :16:40. | |
try and bring those to you later in the programme. | :16:41. | :16:45. | |
Let's get the Inside Track on a business which helps find a new | :16:46. | :16:51. | |
In the US alone, the environmental agency estimates that businesses | :16:52. | :17:00. | |
dispose of some $100 million worth of furniture | :17:01. | :17:02. | |
GlobeChain is a "free-cycle" platform which allows businesses | :17:03. | :17:10. | |
The website helped one nationwide retailer recycle its shop fittings. | :17:11. | :17:15. | |
The retailer donated tables, shelving and display units, saving | :17:16. | :17:17. | |
There are now 1,000 companies on the platform including | :17:18. | :17:27. | |
With us is May Al-Karooni, founder and CEO of GlobeChain, | :17:28. | :17:33. | |
an online reuse platform that connects businesses, | :17:34. | :17:35. | |
charities and people to enable them to reuse unwanted items. | :17:36. | :17:38. | |
Thank you very much indeed for coming in. So we kind of simply | :17:39. | :17:45. | |
outlined for the viewer there how your company works. But just explain | :17:46. | :17:50. | |
why and when you started this, you were in investment bank, weren't | :17:51. | :17:53. | |
you? I used to work in a bank and they moved offices across the road | :17:54. | :17:57. | |
and they came round and basically told us to pick new tables, chairs, | :17:58. | :18:01. | |
computers, carpet tile colours. So I said why don't you just move, you | :18:02. | :18:05. | |
know, the stuff we have across the road and they were like, "No, we're | :18:06. | :18:09. | |
going to throw it away." When I spoke to the facilities people and | :18:10. | :18:13. | |
asked how much it cost, it was around $50,000 to do this and I just | :18:14. | :18:16. | |
thought that's commercial madness. That's really how I ended upsetting | :18:17. | :18:21. | |
up the company to really connect businesses to charities and SMEs to | :18:22. | :18:27. | |
give-and-take unwanted items so we focus around the retail, commercial | :18:28. | :18:29. | |
and construction. It is one thing to have the idea. I mean, I have lots | :18:30. | :18:33. | |
of ideas and think how does this work? But it is making it into a | :18:34. | :18:36. | |
business that's another thing. How did you do that? It was a lot of | :18:37. | :18:41. | |
work. The first couple of years, we basically did a very basic product | :18:42. | :18:45. | |
and trialled with a few, pioneering businesses at the beginning and we | :18:46. | :18:50. | |
looked at the kind of the supply chain and seen who took it and | :18:51. | :18:55. | |
collected data on the social, environmental and economic impact of | :18:56. | :18:58. | |
that. So from there we built the network and it is national across | :18:59. | :19:02. | |
the UK. How easy did you find it to get companies to sign up? Where they | :19:03. | :19:06. | |
willing? On both sides, to actually donate things and also companies to | :19:07. | :19:12. | |
then take the refurbished? I was quite surprised actually because | :19:13. | :19:14. | |
these are really large companies and they were really open to taking a | :19:15. | :19:18. | |
risk with a small businesslike ourselves to try something new and | :19:19. | :19:21. | |
they don't really have many solutions in the market apart from | :19:22. | :19:25. | |
obviously recycling and sending it to a landfill site. So this was | :19:26. | :19:30. | |
something new and innovative and they liked the social impact side | :19:31. | :19:33. | |
where da is not that great at the moment. How do you make money doing | :19:34. | :19:38. | |
this? We charge the corporate for giving the items and it is cheaper | :19:39. | :19:43. | |
than your typical waste disposal costs, so it is an annual fee or | :19:44. | :19:49. | |
pay-as-you-go fee. The people taking the stuff? They take it for free. So | :19:50. | :19:55. | |
they pick up for free. The idea is to help them and enable them to take | :19:56. | :19:59. | |
free items and give them a cost saving and help them with | :20:00. | :20:05. | |
employment. Is it just furniture? No, retail fixtures and products, | :20:06. | :20:11. | |
people like Radisson Hotels do duvets and linen and the NHS do | :20:12. | :20:16. | |
medical equipment. Barts Trust do that and we do construction waste. | :20:17. | :20:21. | |
Anything from raw materials to samples to any refurbishments. Is | :20:22. | :20:23. | |
there anything you can't? Not really. It is more difficult for | :20:24. | :20:28. | |
broken items and electricicals because there is legislation around | :20:29. | :20:31. | |
this, but we have a few members that will take that type of thing, but | :20:32. | :20:34. | |
that's focussed on the recycling side. Do you ask those who are | :20:35. | :20:40. | |
giving the items that they are up to a certain quality, or do you revamp | :20:41. | :20:43. | |
them? No, we are a technology company. So we don't touch the | :20:44. | :20:46. | |
goods. So the tran action really is between the giving party and the | :20:47. | :20:49. | |
taking member. What about other countries? Yeah, we've been looking | :20:50. | :20:53. | |
at Latin America and we have had a lot of interest in America. A lot of | :20:54. | :20:59. | |
these companies are asking for global solutions so it is quite | :21:00. | :21:02. | |
exciting times. Very exciting and fascinating. Thank you very much for | :21:03. | :21:04. | |
coming in. Very interesting. It's almost eight years | :21:05. | :21:09. | |
since the financial crisis brought the global banking system | :21:10. | :21:10. | |
to its knees, considered by many to be the worst meltdown | :21:11. | :21:13. | |
since the Great Depression. This week, we're taking a a look | :21:14. | :21:16. | |
at the health of our banks with our Today, we're in China - | :21:17. | :21:20. | |
its banking sector is But many of its banks are state | :21:21. | :21:23. | |
owned, putting a huge They dominate here in the heart | :21:24. | :21:27. | |
of China's commercial capital. Now, let's start this | :21:28. | :21:39. | |
little circuit in the city The biggest bank in | :21:40. | :21:41. | |
the world is Chinese. ICBC has just over 3.5 trillion US | :21:42. | :21:51. | |
dollars in assets. It has around half | :21:52. | :21:54. | |
a billion customers. In the years following the global | :21:55. | :21:56. | |
financial crisis, there have been interest rate cuts and there has | :21:57. | :22:07. | |
been a boom in credit. All aimed at boosting the economy | :22:08. | :22:10. | |
and all on the orders of the government which owns | :22:11. | :22:15. | |
or controls most of the banks. Well through all of this, | :22:16. | :22:18. | |
the government will remain focussed on its number one priority, | :22:19. | :22:21. | |
maintaining harmony and maintaining stability even if that means saving | :22:22. | :22:23. | |
a few banks that shouldn't be saved. Richard has returned. We are talking | :22:24. | :22:37. | |
about various stories in the papers, she says, trying to find them | :22:38. | :22:42. | |
quickly. We were going too talk about Netflix. Richard, you explain, | :22:43. | :22:48. | |
Netflix out with its figures last night and they really disappointed? | :22:49. | :22:52. | |
The earnings weren't too bad. What really disappointed the markets and | :22:53. | :22:55. | |
the shares fell 16% in after hours trading was the number of | :22:56. | :22:59. | |
subscribers. So the market was hoping for 500,000 more subscribers | :23:00. | :23:03. | |
in the US and there were only 160,000 more and they had been | :23:04. | :23:06. | |
hoping for two million more subscribers worldwide and they were | :23:07. | :23:10. | |
only 1.5 million more. Why are people not subscribing? That's the | :23:11. | :23:20. | |
question. I have a lot of jorgan called grand fathering moving people | :23:21. | :23:24. | |
from good deals on to deals that you are no longer offering. They have | :23:25. | :23:28. | |
ungrandfathered so they haven't been able to move customers on to the | :23:29. | :23:31. | |
more expensive deals and that's why they are losing out on subscribers | :23:32. | :23:36. | |
and they are losing out Games Of Throne, competitors have got better | :23:37. | :23:40. | |
shows. Well, let's get the viewers view on this. One tweet going by the | :23:41. | :23:49. | |
name of Mouse said, "They are slow to add new films and better service | :23:50. | :23:57. | |
elsewhere." We had from Tim he said, "I use Amazon Prime over Netflix. It | :23:58. | :24:03. | |
is useful for people like myself who travel." One says, "I'm moving to | :24:04. | :24:17. | |
Net Flops! They are not adding stuff regularly enough." I can never find | :24:18. | :24:21. | |
anything to watch because there is so much choice. It is because you're | :24:22. | :24:27. | |
trying to find pokey month Go or whatever you're doing with your | :24:28. | :24:36. | |
sons! Wells Fargo spends ?300 million on | :24:37. | :24:40. | |
European head quarters in London. Is this true? These companies have seen | :24:41. | :24:46. | |
their shares fall on fears that people will move out of London and | :24:47. | :24:49. | |
elsewhere in Europe. It is a big vote of confidence in London and a | :24:50. | :24:53. | |
big boost for the property companies. But there has been some | :24:54. | :24:57. | |
suggestions over the week that we could have seen up to 26 million | :24:58. | :25:03. | |
square feet which is something like 11, O 26789s dumped on the London | :25:04. | :25:10. | |
market. It is perhaps a sign that things aren't going to be as bad as | :25:11. | :25:15. | |
people thought. What's your feeling about Brexit. It is a massive story | :25:16. | :25:18. | |
for people like you. What's the sense about it at the moment? The | :25:19. | :25:26. | |
equity markets have shrugged it off. There is, I mean you have got to | :25:27. | :25:33. | |
look at some of the subtlies, defensive stocks have driven a lot | :25:34. | :25:38. | |
of the increases and the FTSE 250 hadn't been impressive. Globally | :25:39. | :25:44. | |
markets are expecting more stimulus from central banks which is driving | :25:45. | :25:49. | |
them higher. So the equity markets, the reaction has been positive. | :25:50. | :25:56. | |
Richard, thank you. It is good to get your thoughts. That's it from | :25:57. | :25:59. | |
Business Live. Thank you for being with us. See you soon. Bye-bye. | :26:00. | :26:06. |