09/08/2016

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:00:14. > :00:15.This is Business Live from BBC News with Victoria Fritz

:00:16. > :00:24."Complicated and too expensive" - that's the verdict on having

:00:25. > :00:28.This morning the UK's competition watchdog has set out its proposals

:00:29. > :00:43.Live from London, that's our top story on Tuesday 9th August.

:00:44. > :00:46.The UK's competition authority says it is "paving the way for an open

:00:47. > :00:48.banking revolution" but are the big names on the high street listening?

:00:49. > :00:56.We'll get an expert view on this latest package of measures.

:00:57. > :00:58.Also in the programme - he's called the "rockstar",

:00:59. > :01:00.but Raghuram Rajan has just overseen his last policy

:01:01. > :01:06.meeting as head of the Indian central bank -

:01:07. > :01:09.who will fill his shoes, and was it the right call to keep interest

:01:10. > :01:16.And traders continue to enjoy the ride in Europe with all the main

:01:17. > :01:18.markets headed higher again - we'll talk you through

:01:19. > :01:21.And does booking directly with a hotel save you money?

:01:22. > :01:24.We'll be talking to one firm which says in most cases it does.

:01:25. > :01:27.He's the most decorated athlete in the history of the Olympic Games.

:01:28. > :01:30.But Michael Phelps' personal life hasn't always been as golden

:01:31. > :01:33.as his record in the pool - major sponsors dropping deals

:01:34. > :01:45.He's looking to secure his corporate comeback.

:01:46. > :01:48.Today we want to know your comeback stories - just use

:01:49. > :01:57.They are calling it a revolution - but some argue in the UK

:01:58. > :02:07.And that is what a UK regulator is trying to tackle and has unveiled

:02:08. > :02:10.a package of new measures to boost competition in retail banking.

:02:11. > :02:11.The Competition and Markets Authority is saying technology

:02:12. > :02:14.is key in making significant change and provides an alternative

:02:15. > :02:18.to the traditional high street banks.

:02:19. > :02:21.And across the globe new FinTech start-ups are attracting huge

:02:22. > :02:35.Last year more than $22-billion was invested globally

:02:36. > :02:44.in financial technology - that's an increase of 75%.

:02:45. > :02:46.Tthe vast majority of this was targeted at banking

:02:47. > :02:49.Emerging markets - particularly in Asia -

:02:50. > :02:52.are leading the way and are fast adopters of new banking

:02:53. > :02:55.Here you can see monthly mobile payments in India

:02:56. > :03:02.have almost quadrupled over the past two years.

:03:03. > :03:04.But is banking really reaching its 'Uber moment' in other

:03:05. > :03:07.It's a phrase dubbed by former Barclays chief

:03:08. > :03:09.executive Antony Jenkins - who predicted technology

:03:10. > :03:11.will unleash huge changes on the industry, including job

:03:12. > :03:13.losses and the closure of a large number of high

:03:14. > :03:18.With us on the programme is John Lyons, the retail

:03:19. > :03:21.and commercial banking leader at PricewaterhouseCoopers.

:03:22. > :03:27.I wonder whether you think the actions outlined in the report will

:03:28. > :03:32.be enough to make banks deliver a better service for customers? It is

:03:33. > :03:35.certainly good for consumers, the thought of your bank sending you a

:03:36. > :03:39.text message to say you are about to go overdrawn and giving you a

:03:40. > :03:42.greater period to deal with that, capped unauthorised monthly fees,

:03:43. > :03:45.that is great. The question is whether it will drive more

:03:46. > :03:50.competition or whether it is just a better deal for consumers, because

:03:51. > :03:55.the report was aimed at growing competition in the banking market.

:03:56. > :03:58.The solution, as Sally outlined, seems to rely on consumer technology

:03:59. > :04:02.to put the balance of power literally in the hands of the

:04:03. > :04:06.consumer, through things like smartphones and this new app they

:04:07. > :04:11.have been talking about. Where does this leave people who are not as

:04:12. > :04:19.tech savvy? The most exciting thing about this, what is called the API,

:04:20. > :04:22.the system, it is opening up your banking records so you could have

:04:23. > :04:26.one application irrespective of where you bank and make payments

:04:27. > :04:29.from any of your bank accounts, no-one logging onto your mortgage,

:04:30. > :04:34.then your current account, then you're other accounts, so that is

:04:35. > :04:38.exciting. Take that a stage further, people providing new services to

:04:39. > :04:42.look at the way you deal with your bank account, your transaction

:04:43. > :04:48.history, and then scour the market to say which other products or

:04:49. > :04:51.services might deliver that better or cheaper, then you start to drive

:04:52. > :04:57.the competition. For me, exciting as it is opening up the API, but, to

:04:58. > :05:01.your point, not everyone likes technology, so what about those

:05:02. > :05:06.people who don't want to do online banking? The CMA dealt with that in

:05:07. > :05:11.a way that they said they would create prompts for people, it may be

:05:12. > :05:16.a statement stuff, it might be better for people who don't do

:05:17. > :05:20.online banking, to drop you a note every now and then to say what you

:05:21. > :05:23.are being charged and what is the competition, prompting you to look

:05:24. > :05:27.at whether you could get a better deal elsewhere. How long do you

:05:28. > :05:32.think it will take for that cultural shift to take place in this country?

:05:33. > :05:37.In Africa, India, banking on a smart device is a lifeline, it is normal,

:05:38. > :05:43.but we are a long way from that? We are a long way from that, we have

:05:44. > :05:46.had the crisis from 2008 and banks in the Western world have been

:05:47. > :05:53.struggling to get over that, let alone invest in new technologies.

:05:54. > :05:57.Some other countries have jumped ahead, and when you look at where

:05:58. > :06:00.the most successful challenger banks have been, the UK has a number of

:06:01. > :06:04.them coming through but where they have gained traction really is

:06:05. > :06:09.places like Poland and South Africa, where they are starting to compete

:06:10. > :06:13.with the big boys. We have a large number of start-up banks in the UK

:06:14. > :06:16.the important thing, they have got the important thing, they have got

:06:17. > :06:23.new business models and lower costs, but they need to drive customer

:06:24. > :06:25.volumes to make the business model work. Thank you for coming in and

:06:26. > :06:27.taking us through those report findings. A lot more on that online

:06:28. > :06:34.as ever. E-commerce giant Alibaba says it

:06:35. > :06:37.wants to help companies keen According to a report by Bloomberg,

:06:38. > :06:41.the Chinese firm aims to help foreign clients comply with local

:06:42. > :06:43.regulations and sell their products. Alibaba says it aims to sign up 50

:06:44. > :06:47.partners over the next 12 months. Facebook has confirmed that it's

:06:48. > :06:51.in the early stages of testing a wifi service with various

:06:52. > :06:56.Indian internet companies. The service allows users to purchase

:06:57. > :06:58.data from local providers A pilot version with a state-run

:06:59. > :07:09.telecoms company has already been Donald Trump says he plans to "jump

:07:10. > :07:15.start" the US economy by suspending new regulations

:07:16. > :07:18.and cutting corporate taxes. During a speech in Detroit,

:07:19. > :07:20.the billionaire businessman said he planned to end the "death" tax

:07:21. > :07:37.levied on assets passed Let's look at some of the business

:07:38. > :07:41.pages online, I want to point you to this story on our website about

:07:42. > :07:45.China warning over the delay over Hinkley Point in Somerset. This is

:07:46. > :07:52.the nuclear project that has been somewhat stymied. This is the

:07:53. > :07:55.ambassador to the UK for China, writing in the Financial Times,

:07:56. > :07:59.saying that the delay to approving the plant has brought the two

:08:00. > :08:04.countries to a crucial historical juncture. He hinted that mutual

:08:05. > :08:07.trust could be in jeopardy if the UK Government decided not to approve

:08:08. > :08:10.the deal. Quite interesting because Theresa

:08:11. > :08:16.May, the newly appointed Prime Minister, has put that decision on

:08:17. > :08:21.review, which is why it has no longer got the green light. We will

:08:22. > :08:22.give you -- keep you up to date with any development on that.

:08:23. > :08:24.Let's head to India, where the country's central bank has

:08:25. > :08:26.decided to keep interest rates on hold.

:08:27. > :08:29.This is the the last policy decision to be made my the outgoing

:08:30. > :08:30.Reserve Bank governor Raghuram Rajan.

:08:31. > :08:38.It's not often that policymakers are described as rock stars -

:08:39. > :08:44.Although I have heard of Mark Carney described as George Clooney said

:08:45. > :08:48.things are changing! Mr Rajan will be a very

:08:49. > :08:50.difficult act to follow. Sameer Hashmi joins us from outside

:08:51. > :09:02.the Indian central bank. He is a popular figure, what happens

:09:03. > :09:05.next? He is very popular but at the same

:09:06. > :09:10.time very controversial. You described him as a rock star, never

:09:11. > :09:14.a dull moment when he was in office here at India's Central Bank. He

:09:15. > :09:19.still has 28 days left, the government is supposed to announce

:09:20. > :09:22.the new man to take his place in the next few days, many names doing the

:09:23. > :09:33.rounds... INAUDIBLE.

:09:34. > :09:39.I do apologise, I think we have just lost Samir there but plenty more

:09:40. > :09:43.available when it comes to India and the future of that economy, a huge

:09:44. > :09:48.growth economy, and no change in the interest rate decision in that

:09:49. > :09:53.country at the moment. Pesky gremlins! I have been speaking

:09:54. > :09:57.to sum it all morning and have had three successful conversations with

:09:58. > :10:00.him so far today. In India, to reiterate, the central bank has

:10:01. > :10:04.decided to keep interest rates on hold today. Markets across the world

:10:05. > :10:08.very much focused on central bank action, that is what is fuelling the

:10:09. > :10:12.rally in Europe. We cannot show you the numbers right now but most of

:10:13. > :10:16.the main market are headed higher again today. We will talk in more

:10:17. > :10:20.detail about that in a moment but let's look at what is happening

:10:21. > :10:25.stateside. Mickey Mouse and his colleagues will

:10:26. > :10:29.be front and centre on Wall Street on Tuesday when Walt Disney reports

:10:30. > :10:33.its earnings. Disney has had a few box office wins in the last quarter

:10:34. > :10:38.the Jungle book. A drag on Disney the Jungle book. A drag on Disney

:10:39. > :10:46.will be the declining subscribers for its sports network, ESPN.

:10:47. > :10:48.Just how productive have American workers

:10:49. > :10:52.We will find out a little later when the US Labor Department

:10:53. > :10:54.releases data on the hourly output per worker.

:10:55. > :10:58.And finally, Solar City will also be reporting earnings on Tuesday.

:10:59. > :11:00.This is the company that electric car company Tesla has recently

:11:01. > :11:05.Tesla shareholders still have to vote on the deal

:11:06. > :11:12.Joining us is Simon Derrick, chief market strategist

:11:13. > :11:24.Welcome to the programme. I have brought up the market state on the

:11:25. > :11:29.tablet, we are seeing a real rally on equities across the world. The

:11:30. > :11:36.FTSE higher today, led by the likes of legal and General, for example.

:11:37. > :11:44.What is going on, why are equities racing higher? The FTSE was at 14

:11:45. > :11:48.month highs yesterday. The monetary and see has overwhelmed everything

:11:49. > :11:53.else. A lot of the big risk events we were worried about this year, the

:11:54. > :11:56.EU referendum has come and gone, Chinese currency devaluation, people

:11:57. > :12:00.are no longer worried about that. Oil prices, people no longer

:12:01. > :12:04.concerned about that. Central banks have overwhelmed all that with

:12:05. > :12:08.easier Monetary Policy Committee will need to put that money to work

:12:09. > :12:12.and low and behold we are here in a quiet, calm August and markets are

:12:13. > :12:19.going up. There is relatively little for them to worry about until we get

:12:20. > :12:23.maybe to the presidential election. Also we are all shopping, sitting in

:12:24. > :12:27.a pub and drinking in the UK right now, the latest British Retail

:12:28. > :12:31.Consortium numbers out of date. You say that as though it is a bad

:12:32. > :12:37.thing! Is it because the sun is shining? There was that great

:12:38. > :12:41.concern in the early aftermath of the referendum that people thought

:12:42. > :12:45.we would get bad sets of numbers. The first real take on what happened

:12:46. > :12:52.in July, pretty much on average from what we have seen in previous parts

:12:53. > :12:55.of the year, and you are right it was food and in and fashion,

:12:56. > :13:02.although there was a concern that a lot of it was heavily discounted.

:13:03. > :13:04.Not big ticket items? No, Barclaycard's numbers suggested a

:13:05. > :13:09.similar thing, we are out in restaurants and pubs. I would like

:13:10. > :13:11.to think I have contributed to that somehow! You will next week in the

:13:12. > :13:16.Lake District! Absolutely! Does booking directly

:13:17. > :13:21.with a hotel save you money? We'll be talking to one firm

:13:22. > :13:24.which says in most cases it does. You're with Business

:13:25. > :13:26.Live from BBC News. Let's have a look at some

:13:27. > :13:32.stories from around the UK. Two of Britain's biggest insurers

:13:33. > :13:34.have announced double-digit Operating profits rose 10%

:13:35. > :13:43.at Legal General and 18% at Standard Life, proving

:13:44. > :13:45.to investors that they've so far managed to navigate the unchartered

:13:46. > :13:48.waters after the Brexit vote. Theo Leggett joins us

:13:49. > :13:50.in our Business Newsroom. Theo what's going right

:13:51. > :14:00.for these companies? Pensions are big business for both

:14:01. > :14:04.of these countries. Legal General, let's have a look, the share price.

:14:05. > :14:09.It absolutely tanked in the wake of the Brexit vote but has been bumping

:14:10. > :14:13.up since then and part of the reason is that areas of business have been

:14:14. > :14:17.doing well despite the market's turmoil. According to Legal

:14:18. > :14:23.General today, their pension annuities business saw sales of ?3.8

:14:24. > :14:26.billion over the last year, nearly triple the previous year. The

:14:27. > :14:28.markets have not taken that so well, the share price dipped this morning,

:14:29. > :14:53.which might be partly because a lot of the extra business is taking

:14:54. > :14:56.on pensions business from final salary company schemes, basically

:14:57. > :14:58.taking in some money but taking on some risk. In other areas, Legal

:14:59. > :15:00.General and Standard Life have done well because people are rushing to

:15:01. > :15:02.safety, putting their money into investment products which has

:15:03. > :15:04.boosted the number of assets under administration that both of these

:15:05. > :15:06.companies have got. What is the longer term outlook for

:15:07. > :15:08.the insurers? Not too bad, Standard Life has made

:15:09. > :15:11.a big thing about expanding its geographical coverage, it is excited

:15:12. > :15:13.about India and China for example. These companies operate in the long

:15:14. > :15:17.term, you might have short-term blips caused by things like the EU

:15:18. > :15:21.referendum result, a lot of short-term market turmoil, but both

:15:22. > :15:25.of these companies are focused around long-term investments and

:15:26. > :15:33.you. -- thank you.

:15:34. > :15:42.We have had some news from Morrisons and Ocado, this is the online

:15:43. > :15:49.grocery firm, announcing changes to the long standing tie-up, they say

:15:50. > :15:52.that Morrisons .com will be ruled out across one of the UK to pick

:15:53. > :15:57.produce from its own stories through taking a major stake in their new

:15:58. > :16:03.delivery Centre in South London, it'll be interesting to see what is

:16:04. > :16:05.going on with the sharers a result. -- shares as a result.

:16:06. > :16:11.That's the verdict on having a bank account in Britain.

:16:12. > :16:14.This morning the UK's competition watchdog has set out its proposals

:16:15. > :16:23.Plenty more available on the live web page.

:16:24. > :16:30.A quick look at how the markets are faring.

:16:31. > :16:37.They are higher, the main markets. Following the lead from Japan, the

:16:38. > :16:39.story in Asia as well. We will keep a close eye on those for you.

:16:40. > :16:42.Trying to find the cheapest hotel deal can be hard work.

:16:43. > :16:44.One firm called Triptease says the average person visits 38

:16:45. > :16:52.Triptease works with hotels to compete with online booking

:16:53. > :17:01.services like Booking.com and Hotels.com, which they say can

:17:02. > :17:03.charge hoteliers a hefty commission on sales.

:17:04. > :17:05.They're already working with over 8,000 hotels across the world,

:17:06. > :17:12.It was set up here in the UK and co-founded by Charlie Osmond.

:17:13. > :17:16.Key to its success is a price check widget which shows in real time

:17:17. > :17:18.the prices of other online travel agencies, compared

:17:19. > :17:24.The firm claims they can increase the number of direct

:17:25. > :17:32.Charlie Osmond is with us - co-founder and CEO of Triptease.

:17:33. > :17:43.Good morning. Can you explain in basic terms what exactly it is that

:17:44. > :17:48.you offer hotels? This is a business to business company? Were helping

:17:49. > :17:52.hotels with the biggest challenge, increasing more bookings directly on

:17:53. > :17:56.their own website. The key issue for hotels at the moment is people

:17:57. > :18:00.believe that prices are cheaper elsewhere through the online

:18:01. > :18:05.intermediaries and when actually hotels often have the best rate. We

:18:06. > :18:09.provide a price comparison that sits on the website and people on the

:18:10. > :18:15.website can be shown that this price is equal to the market or better. I

:18:16. > :18:19.understand the challenges hotels face because when you go online to

:18:20. > :18:23.book a flight, you immediately by giving the hotel option and the car

:18:24. > :18:28.option, everything is ready, it is very convenient. And it looks quite

:18:29. > :18:33.cheap, you would not necessarily think about checking the Hotel

:18:34. > :18:37.website? It turns out that two thirds of bookers will go to the

:18:38. > :18:39.hotel website because they want more photos and information that they

:18:40. > :18:46.will often come to the website and then leave because of this price

:18:47. > :18:49.misunderstanding and what has been fascinating is that hotels around

:18:50. > :18:53.the world has stood up for themselves and said, it is time for

:18:54. > :18:58.us to be able to charge people cheaper prices directly and to get

:18:59. > :19:01.better services. Whether that is the Hilton or Marriot or Continental

:19:02. > :19:05.hotels, they are offering real incentives for direct burgers and we

:19:06. > :19:11.think this will change consumer behaviour. Does begin directly

:19:12. > :19:16.always save money? Not always, we have just done ?200 million cheques

:19:17. > :19:23.over the last few months and the hotel is often cheaper, with online

:19:24. > :19:27.brokers around 20% at the time. It is good to shop around and that is

:19:28. > :19:31.something we're trying to do, increase transparency. You offer

:19:32. > :19:35.this service of driving traffic towards their website but you also

:19:36. > :19:41.offer a lot of analysis that you have gathered with this research?

:19:42. > :19:47.Yes, when we started, we firstly try to help one hotel at the time but we

:19:48. > :19:49.have got scale, over 10,000 Hotel properties and that allows us to

:19:50. > :19:54.analyse the way people search and what they are looking for and use

:19:55. > :19:58.that for best practice to help hotels individually. Why decide to

:19:59. > :20:03.do this? You set of this company some years ago, why did you decide

:20:04. > :20:07.to do this? This is my third start-up, I always promised I would

:20:08. > :20:11.never do that again! I was going through what I always find is a very

:20:12. > :20:16.painful annual experience of booking the family holiday and I got so

:20:17. > :20:19.frustrated, the amount of time that I was wasting planning a trip and I

:20:20. > :20:23.felt there has to be a better way, improvements that can be made to the

:20:24. > :20:29.online process so we launched into this. Why call this Triptease? This

:20:30. > :20:35.is likely to put women in the hotel industry off? Len Webber say that we

:20:36. > :20:39.find the opposite. It comes down to the fact that every year, hundreds

:20:40. > :20:45.of thousands of companies are launched and we want to be in the

:20:46. > :20:51.top zero. 1% and you must stand out, if you are bland people will forget

:20:52. > :20:54.you. If it means pushing risks, but fundamentally, if you're not

:20:55. > :21:00.prepared to do that, you will end up being a company we do not talk

:21:01. > :21:05.about. The first two did not work? What is your top tip for somebody

:21:06. > :21:09.trying to start something? My first two start-ups did very well but with

:21:10. > :21:16.Triptease we two different things did not work out. A lot of people

:21:17. > :21:20.are working at their desks and it might be worried about what you say!

:21:21. > :21:24.What we learned with Triptease is even though we knew we wanted to go

:21:25. > :21:30.to the market and there was an opportunity, we at a very lean

:21:31. > :21:36.start-up approach, constantly iterating, trying one thing that did

:21:37. > :21:39.not work, trying another, trying the third, that did work. You have to

:21:40. > :21:44.constantly keep trying things and testing. And the nice thing is

:21:45. > :21:47.today, you can inexpensively try something and see if it works and

:21:48. > :21:50.then move on. Great, Charlie, thank you very much.

:21:51. > :21:53.In a moment we'll take a look through the Business Pages but first

:21:54. > :21:57.here's a quick reminder of how to get in touch with us.

:21:58. > :22:02.The Business Live pages where you can stay ahead with all of the

:22:03. > :22:06.breaking business news. We will keep you up-to-date with the latest

:22:07. > :22:11.details, with insight and analysis from the BBC's team around the

:22:12. > :22:19.world. And we want to hear from you also. Get involved on the BBC

:22:20. > :22:26.Business Live web page... And on Twitter... And you can find us on

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:22:36. > :22:46.Simon is back. This story is in York times, about Donald Trump, he

:22:47. > :22:50.stocking tax and very much his economics and we have been

:22:51. > :22:53.discussing, favouring pinstripes over blue-collar workers? For a

:22:54. > :23:01.candidate supposedly in favour of the working class, he clearly has a

:23:02. > :23:04.soft spot for the 1%? Trying to win back the Republican core voters,

:23:05. > :23:08.this is caught Republican economics but in terms of the message, it is

:23:09. > :23:15.quite smart because here he reveals, sending a message to Republican

:23:16. > :23:20.voters and wealthy voters, but by being in Detroit he has sent a clear

:23:21. > :23:24.message to blue-collar workers and strong message about International

:23:25. > :23:28.Trade as well. Talking about trade agreements, going after people like

:23:29. > :23:32.Japan and China, but he has called currency manipulators in the past

:23:33. > :23:38.but there is something for everybody. Maybe that is the wise

:23:39. > :23:46.thing about what he is doing. Let us talk about Michael Phelps, the

:23:47. > :23:50.American swimmer who got his 19th medal at the American Olympics. This

:23:51. > :23:55.article in the Wall Street Journal talks about how he is reinventing

:23:56. > :23:58.himself? They say there is no second chances and I were struggling to

:23:59. > :24:03.think of other American athletes that have come back after some of

:24:04. > :24:08.the setbacks that he has had. I think maybe Tiger Woods is the

:24:09. > :24:15.closest I can think of. He is trying to get fresh sponsorship and at the

:24:16. > :24:28.moment he is the face of Amica, and beef jerky and hot towels! That go

:24:29. > :24:32.hot tubs. It is interesting. We had this conversation about Maria

:24:33. > :24:36.Sharapova, she was given a two-year ban for being involved in

:24:37. > :24:41.international tennis so she is in that in between world and there is a

:24:42. > :24:47.way back, it would seem, if he is successful? This is his last

:24:48. > :24:52.Olympics, will he come back? If you are a sponsor, looking for the next

:24:53. > :24:56.eight years, able find a better candidate than Michael Phelps. Given

:24:57. > :25:04.his past history and his future in terms of sport. One last article,

:25:05. > :25:08.this made us giggle! The New York Times, America is completely

:25:09. > :25:13.flummoxed by Chip and pin, they don't like the noise, the beeping,

:25:14. > :25:24.they say it is like the sign of failure? First world problems! --

:25:25. > :25:31.sound of. Get over yourself! I love it, it is fantastic. I love being

:25:32. > :25:36.able to use contactless, I use it on transport, in shops, restaurants. It

:25:37. > :25:39.is so fast! You would think the biggest economy in the world would

:25:40. > :25:44.love this? Perhaps it is the fact that if you're in the midwest,

:25:45. > :25:49.perhaps there is less security concerns, perhaps some shops do not

:25:50. > :25:52.invest in it. But it is fantastic! I love it! Thank you so much and enjoy

:25:53. > :25:54.your holiday!