26/07/2016 BBC Business Live


26/07/2016

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This is Business Life. Amazon gets the UK, a landmark deal that could

:00:13.:00:25.

revolutionise the way we shop. It is what we will be droning on about on

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Tuesday the 26th of July. His science fiction about to become

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business fax? The retail giant Harmison world test B testing drains

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in the UK to deliver parcels to your door. Eddie Chambers so the current

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rules, drones will be allowed to fly out of sight of the operator. Third

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time lucky for the creation of a superstar market to rival the

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US and Asia? We will find out if German

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go-ahead to merge with the London stock exchange. We will have the

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details of the markets, and assess what is

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moving the numbers stop larger central banks

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printing money, later in the programme we will speak to the boss

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of the Royal Mint. 1100 year old country, manufacturing cash for

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dozens of countries around the world.

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Starbucks introduces a new dress code., dark colours and playing

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patterns are in, bright colours are out. Are you a fan of work dress

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code? I meet the dress code, you do not

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text Mac get in touch. Was not the programme with the skies

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above our heads. They can start getting busier. The

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retail giant Amazon has agreed a deal with the UK

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Government to start testing the use of drones to deliver parcels to your

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front door. Heung-Min Son wants to examine how hundreds of

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robotic aircraft could buzz around our skies safely. It could

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eventually mean small parcels arrive at

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just 30 minutes of ordering them online.

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Ministers say it will pave the way for all businesses to start using

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the technology in the future. It sounds like something

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out of Harry Potter, thousands of parcels being flown

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through the air then dropped off But drones delivering your shopping

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could eventually be What this is about is working out

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how to do it safely. Are we going to need

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new laws, for example? And, of course, they are going to be

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going over people's gardens, How can you guarantee

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they won't fall out of the sky? There are going to be people

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who just don't fancy the idea. we need a broader societal

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discussion, not just the government and Harmison getting in a huddle for

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the sake of the economy. The sky is the limit for drilling technology,

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if they can convince people it is private and safe. Let's stay with

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this, David Lane is a professor of autonomous systems at the University

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of Edinburgh. Great to have you on the programme.

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Seriously, do you honestly believe this will become a reality? You

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think about the safety and air regulations this will have to get

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through? It is likely to be a reality, it is

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happening. Not just Harmison, Google, DHL, also in China.

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Fantastic that the UK has been chosen by hammers on as the place to

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come. We have the best regulatory environment. Give me a timescale,

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I'm in central London, when will I get a package in 30 minutes. Not for

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me to say how long it will take to adapt the regulations. It will not

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be tomorrow. Quite a bit of testing there has to be done, the

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technology, also the wider societal discussion with people. It strikes

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me that the important thing to day was a deal with the UK Government.

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Landmark agreement, drones will be able to fly out of the line of sight

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of the operator. Very strict rules at the moment. That is the most

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significant thing. The government has said we are paired to allow you

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to do this. -- we are prepared. That is why it have come here. They

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cannot do this in the US. We can win market share for this technology,

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good for universities and business. I have had comments on running this

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story, it is a current theme around the world, terrorists getting their

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hands on drones. If they are hands on drones. If they are

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permitted to fly over our heads who is to say a terrorist cannot get

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hold of it and use it as a weapon? Terrorists can get hold of bull

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source weapons already. Nothing new in that. Certainly security of

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locations about the way the drones are

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configured, how you access the software, how you drive them. All

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things considered as part of the test ). These things will not be in

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the streets, working for us tomorrow. I'm sure there is a

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serious test programme before that happens. We appreciate your time. I

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would love to see the difference between costs, drones delivery. I

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guess a drone would be Cheaper. That means the driver is

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gone, job wise. We will talk about that later. The Frank

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reveal this results of a stock exchange merger with the London

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stock exchange. with rival the US and Asia. Oil

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prices have fallen. A three-month loan, growing concerns of the

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oversupply of crude and natural gas. US oil fell 25%. 43 bucks a barrel.

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Falling by 12% this year. Brent crude percent. You can buy a barrel

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for $43. The lowest level since the 10th of May. Using low oil prices

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would be good news for car-makers. General Motors has stalled a planned

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$1 billion investment in India while assessing the strategy in the

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country. New rules on diesel vehicles have led the company to

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rethink plans, 5000 new cars are sold in India every day. The

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third-largest car market in the world by 2020. Let's take in Asia.

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The economy of Nepal has been thrown into turmoil again after the

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resignation of Prime Minister, ahead of a no-confidence vote. Nepal is

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set to get his ninth from Minister in just ten years. Alicea following

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the story from Singapore. This is made more difficult, the country

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trying to rebuild after the devastating earthquake. Exactly

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that, a thousand people killed, they are trying to push

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forward reconstruction spending. Turmoil in the government can

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Nepal is one of the world's poorest economies.

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You wonder whether this instability will continue to hinder the

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country's progress. The Prime Minister resign ahead of a

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no confidence vote. Analysts expect the instability to

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continue for at least another year. We're

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having two countries jostling for influence we have the Cabinet, China

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and India. Geographically Nepal is in the

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middle of the two. The countries want to have more say in control of

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the 28 million people, as well as the fact Nepal sits on a very

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significant energy route. China is the biggest investor. India the

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biggest trading partner. With this resignation, India may win more

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influence of the government. Thank you for staying across that. Quick

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look at the numbers. Tokyo shares down for a third straight session to

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date. The yen rally worrying investors. We will touch on that

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later. There are US and Japanese central bank meetings, we may see

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action to kick-start sluggish growth. Brent crude up, $44, down of

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late. A pretty mixed session in Europe, the FT-SE 100 sliding back.

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Up about a quarter so far today. Let's heads stateside. We have the

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details about the day ahead in Wall Street. More news coming from

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Verizon, head of purchase of Yahoo. Labour costs will increase, that may

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weigh on their earnings. Reported earnings from Apple and Batth. Apple

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painting a gloomy picture back in April, forecasting a weak quarter.

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Analysts unsure whether the soon-to-be-released iPhones seven

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can reinvigorate sales in the second half of 2016. As for Twitter, that

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is their biggest challenge, stagnating user growth. The CEO

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wanting to enrolment new users through live video, tweaks to the

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length of tweets. The managing director of Pimlico joins us. For a

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UK audience, you know they know what you are talking about. For the world

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audience, talking about BT and Ofcom. It is the bit that installs

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the cables, and the bit that sells it. The national operator has this

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infrastructure, being used to provide broadband services. The

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issue is how much is opened up to competition. How much investment

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they put into that particular part of their operation. A list of

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tension between BT and competitors. Competitors pushing for a full

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separation of the infrastructure and provision of service. At the moment

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Ofcom once a formal separation of the two entities, still within BT.

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Trying to put pressure on BT. Hopefully this will alleviate the

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complaints of some of the other companies, being tough on

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competition. We will talk about the papers later. For now, thanks. Still

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to come secrecy, the name of the game for the UK's Royal Mint. We

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will hear why silence is golden. I don't think the coins are golden.

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You are with Business Live. Natwest and Royal Bank of Scotland

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have warned business customers they may be charged for depositing

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money in accounts, due If enacted, the move would make them

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the first UK banks to introduce negative interest rates which,

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in effect, means they'd be charged Theo Leggett is

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following this for us. This is interesting, there are other

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countries, I can think of Japan, with negative interest rates?

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Yes, Sweden, the European Central Bank has even done it for some

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deposit. The point about this is low interest rates are not particularly

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good for banks in terms of profitability. There is a lot of

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talk about interest rates in the United Kingdom going lower because

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of what happened on June the 23rd, the EU referendum. It has had

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certain effects on the UK economy and there is lots of speculation

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that the Bank of England may choose to drop interest rates from 0.5% to

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0.25% in August, potentially going lower. What NatWest and the Royal

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Bank of Scotland have said is that their commercial customers may be

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asked to paper the privilege of depositing money with those banks if

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interest rates go to low but we can interpret this as a warning that

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they would not like to see interest rates in the UK falling Tullo. So it

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is not something that is necessarily going to happen, it is preparing the

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way of saying, this is what we would have to do if interest rates in the

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country go to low. Great stuff as always, we will talk

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to you soon. Sir Philip Green is threatening

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to take legal action against Frank Field,

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after the Labour MP criticised him Lawyers acting for the businessman

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have given Mr Field 24 hours to apologise for comparing

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Sir Philip to the late media tycoon Robert Maxwell,

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who took millions from A bit more on that BT news that we

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were discussing, Openreach, the part that installs the wires and cables,

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should become a distinct company, says the regulator, but has resisted

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calls to split it off entirely. It says Richard have separate staff, a

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separate board and separate branding, all designed to avoid

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additional cost or disruption to consumers. Full details on our

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website. Our top story is drones. Amazon has

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been given the green light to test, from UK Government, to test services

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that deliver their parcel. You are doing really well!

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I have been doing it all morning! To deliver parcels to the house, they

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say, 30 minutes after ordering. I still want to know what happens if

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you live in a flat. A quick recap of the market in the

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first 45 minutes of trade, pretty flat across mainland Europe.

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How would you like a licence to print money?

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Each year, the UK's Royal Mint makes currencies for dozens

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of countries around the world, but it's not allowed to disclose

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many of its international clients for security reasons.

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But the use of notes and coins has been in decline as more of us switch

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Last year in the UK, electronic payments outnumbered cash

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The Royal Mint has been making coins for hundreds of years.

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In 2014, it launched its bullion trading website, which allows

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investors to buy and sell gold coins and bars.

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Gold is seen as a safe haven - somewhere to put your money

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We're joined by Adam Lawrence, chief executive of the Royal Mint.

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1100 years old, right? You are looking good! Welcome to the

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programme, good to have you with us. So many questions. Let's start with

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that, this cashless society that we are becoming. That has got to hamper

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your business? The death of cash is predicted but we are not there yet,

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we will not be that for a long time. The volume in the UK and many

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overseas markets has actually been increasing, so the number of

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transactions has been decreasing but the volume has been going up for us.

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Some will think of the Royal Mint, in charge of making the money year

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in the UK, but I know you cannot say, but there are lots, the tie

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but, right? We make some of the blanks for Thailand, the coin before

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it has the head and tail on it, and we make them for many other

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countries, usually about 50 countries every year. Speaking of

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the coins, one thing that interests me is the counterfeit coins,

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staggering numbers of counterfeit ?1 coins, so much so that you are

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introducing a new one next year with 12 side and that sort of thing? How

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do you stay one step ahead of the fraudster? It is a difficult task

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but we have brand-new high security features, which I cannot talk about

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for obvious reasons but it is cutting edge and will allow us to

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have a binary is it real or not? The great thing with the ?1 coin, we

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have some overseas customers as well. Looking at those pictures, the

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little piece of metal, if you will, and we have seen commodity prices go

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all over the place, lots of them down, and the prices of metal, does

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that affect your business? Because ?1 is ?1, right? It affects

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customers' decisions about whether to make new coins and what materials

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they might use. Hopper is used a lot in coins, if they go up it might

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mean people change. It provides an opportunity for us to introduce new

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styles of coins with the -- like with the 5p and 10p a few years ago,

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predominantly nickel, which saves the taxpayer money. One thing I want

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to know, these commemorative coins for weddings and birds, that sort of

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thing, are they worth the? Of course they are! They are commemorative

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products for people who want to keep them as a keepsake and I think for

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the people who buy them there is inherent value in what they are

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buying it for. We have been told to wrap it up! As an Aussie, how do you

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become the big boss of the Royal Mint?! I had a pharmaceutical

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background before this, finance, moved here, it is a fantastic

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organisation, I was given the opportunity five years ago and I've

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loved every moment of it. From drug making it a moneymaking! Great!

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We appreciated, thank you very much -- from drug making to moneymaking.

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They say you have to dress for success in the modern world.

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In a moment we will be talking about Starbucks' new dress code,

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but first let's hear about the do's and don'ts for today's business

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leaders from Designer and tailor Ozwald Boateng.

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A lot of CEOs don't get the power image, and they don't get the power

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of their own brand that they work for, so I find sometimes a lot

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Are they a bit afraid to express themselves fully?

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They're thinking about their company's brand and reputation?

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Some of them have an awareness, and they think, "I need to dress

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a certain way," and I've experienced it when they say, "I don't

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I say, "That is really anti what I do!"

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You don't necessarily have to wear a suit,

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but you have to be consistent in whatever that image is.

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So, you had Steve Jobs always wearing a black rollneck.

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If you're wearing clothes where you're confident in them

:22:48.:22:55.

and you're enjoying them, that will reflect in the way

:22:56.:23:00.

You have got to feel good about yourself, and when that's

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happened, that radiates through who you are in your personality.

:23:07.:23:13.

As promised, Mike is back. Let's start with the Starbucks dress code

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story, lots of tweets coming in. One example, all dress code is a

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side-effect of power hungry management who think they are more

:23:26.:23:29.

important than they are! Keep those comments coming in. Your

:23:30.:23:35.

thoughts on it? What is interesting about the Starbucks one, they

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already had a dress code but now there are certain dos and don'ts,

:23:39.:23:42.

and some are surprising, particularly the headgear. The ones

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on the left are what you can buy, the ones on the right you can't. You

:23:46.:23:49.

would not want a tiger print fedora, for example?! We don't have those in

:23:50.:23:55.

our office either, so I agree with that! Baseball caps are not that

:23:56.:24:02.

prevalent, either! Is that right, in today's society? Starbucks is an

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internationally recognised brand, you want to make sure people feel

:24:06.:24:12.

comfortable working for them and if you pigeonhole them too much you

:24:13.:24:15.

reduce the appeal of working for them, so I think that is what they

:24:16.:24:20.

are trying to do. I gather it is a 15 page document so I the spec there

:24:21.:24:23.

are some quite entertaining pieces in their! Do you have dress down

:24:24.:24:31.

Friday in the office? We do. What is that, in the city, just taking off

:24:32.:24:38.

that I? More or less! But during the summer months we have something more

:24:39.:24:46.

casual. To be honest, if you were on the tube, just taking your tie off

:24:47.:24:57.

makes a big difference! Let's turn our attention to this

:24:58.:25:00.

55,000,000-dollar payoff the Stephanie Meyer, this was yesterday.

:25:01.:25:08.

An amazing number, are pretty staggering payoff. This is a

:25:09.:25:16.

challenge we see everywhere at the moment, levels of pay, and the

:25:17.:25:20.

clarity around it, to be fair to her, the Yahoo stock price has gone

:25:21.:25:25.

up so to some degree she has put a lot of money there for the

:25:26.:25:32.

shareholders, largely on the Alibaba part, so this has crystallised in a

:25:33.:25:37.

short space of time. And Alibaba is crucially not involved in the sale.

:25:38.:25:42.

Hanging onto that one. So it should be seen as a success? The price has

:25:43.:25:49.

gone up by 150%, so, on that basis, to some degree she has done

:25:50.:25:54.

something right but clearly is doing well with those numbers.

:25:55.:25:58.

But to see you, that is it from us, we will be back tomorrow, same time,

:25:59.:26:02.

same place. Have a good day, goodbye.

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