09/08/2016 BBC Business Live


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This is Business Live from BBC News with Victoria Fritz


"Complicated and too expensive" - that's the verdict on having


This morning the UK's competition watchdog has set out its proposals


Live from London, that's our top story on Tuesday 9th August.


The UK's competition authority says it is "paving the way for an open


banking revolution" but are the big names on the high street listening?


We'll get an expert view on this latest package of measures.


Also in the programme - he's called the "rockstar",


but Raghuram Rajan has just overseen his last policy


meeting as head of the Indian central bank -


who will fill his shoes, and was it the right call to keep interest


And traders continue to enjoy the ride in Europe with all the main


markets headed higher again - we'll talk you through


And does booking directly with a hotel save you money?


We'll be talking to one firm which says in most cases it does.


He's the most decorated athlete in the history of the Olympic Games.


But Michael Phelps' personal life hasn't always been as golden


as his record in the pool - major sponsors dropping deals


He's looking to secure his corporate comeback.


Today we want to know your comeback stories - just use


They are calling it a revolution - but some argue in the UK


And that is what a UK regulator is trying to tackle and has unveiled


a package of new measures to boost competition in retail banking.


The Competition and Markets Authority is saying technology


is key in making significant change and provides an alternative


to the traditional high street banks.


And across the globe new FinTech start-ups are attracting huge


Last year more than $22-billion was invested globally


in financial technology - that's an increase of 75%.


Tthe vast majority of this was targeted at banking


Emerging markets - particularly in Asia -


are leading the way and are fast adopters of new banking


Here you can see monthly mobile payments in India


have almost quadrupled over the past two years.


But is banking really reaching its 'Uber moment' in other


It's a phrase dubbed by former Barclays chief


executive Antony Jenkins - who predicted technology


will unleash huge changes on the industry, including job


losses and the closure of a large number of high


With us on the programme is John Lyons, the retail


and commercial banking leader at PricewaterhouseCoopers.


I wonder whether you think the actions outlined in the report will


be enough to make banks deliver a better service for customers? It is


certainly good for consumers, the thought of your bank sending you a


text message to say you are about to go overdrawn and giving you a


greater period to deal with that, capped unauthorised monthly fees,


that is great. The question is whether it will drive more


competition or whether it is just a better deal for consumers, because


the report was aimed at growing competition in the banking market.


The solution, as Sally outlined, seems to rely on consumer technology


to put the balance of power literally in the hands of the


consumer, through things like smartphones and this new app they


have been talking about. Where does this leave people who are not as


tech savvy? The most exciting thing about this, what is called the API,


the system, it is opening up your banking records so you could have


one application irrespective of where you bank and make payments


from any of your bank accounts, no-one logging onto your mortgage,


then your current account, then you're other accounts, so that is


exciting. Take that a stage further, people providing new services to


look at the way you deal with your bank account, your transaction


history, and then scour the market to say which other products or


services might deliver that better or cheaper, then you start to drive


the competition. For me, exciting as it is opening up the API, but, to


your point, not everyone likes technology, so what about those


people who don't want to do online banking? The CMA dealt with that in


a way that they said they would create prompts for people, it may be


a statement stuff, it might be better for people who don't do


online banking, to drop you a note every now and then to say what you


are being charged and what is the competition, prompting you to look


at whether you could get a better deal elsewhere. How long do you


think it will take for that cultural shift to take place in this country?


In Africa, India, banking on a smart device is a lifeline, it is normal,


but we are a long way from that? We are a long way from that, we have


had the crisis from 2008 and banks in the Western world have been


struggling to get over that, let alone invest in new technologies.


Some other countries have jumped ahead, and when you look at where


the most successful challenger banks have been, the UK has a number of


them coming through but where they have gained traction really is


places like Poland and South Africa, where they are starting to compete


with the big boys. We have a large number of start-up banks in the UK


the important thing, they have got the important thing, they have got


new business models and lower costs, but they need to drive customer


volumes to make the business model work. Thank you for coming in and


taking us through those report findings. A lot more on that online


as ever. E-commerce giant Alibaba says it


wants to help companies keen According to a report by Bloomberg,


the Chinese firm aims to help foreign clients comply with local


regulations and sell their products. Alibaba says it aims to sign up 50


partners over the next 12 months. Facebook has confirmed that it's


in the early stages of testing a wifi service with various


Indian internet companies. The service allows users to purchase


data from local providers A pilot version with a state-run


telecoms company has already been Donald Trump says he plans to "jump


start" the US economy by suspending new regulations


and cutting corporate taxes. During a speech in Detroit,


the billionaire businessman said he planned to end the "death" tax


levied on assets passed Let's look at some of the business


pages online, I want to point you to this story on our website about


China warning over the delay over Hinkley Point in Somerset. This is


the nuclear project that has been somewhat stymied. This is the


ambassador to the UK for China, writing in the Financial Times,


saying that the delay to approving the plant has brought the two


countries to a crucial historical juncture. He hinted that mutual


trust could be in jeopardy if the UK Government decided not to approve


the deal. Quite interesting because Theresa


May, the newly appointed Prime Minister, has put that decision on


review, which is why it has no longer got the green light. We will


give you -- keep you up to date with any development on that.


Let's head to India, where the country's central bank has


decided to keep interest rates on hold.


This is the the last policy decision to be made my the outgoing


Reserve Bank governor Raghuram Rajan.


It's not often that policymakers are described as rock stars -


Although I have heard of Mark Carney described as George Clooney said


things are changing! Mr Rajan will be a very


difficult act to follow. Sameer Hashmi joins us from outside


the Indian central bank. He is a popular figure, what happens


next? He is very popular but at the same


time very controversial. You described him as a rock star, never


a dull moment when he was in office here at India's Central Bank. He


still has 28 days left, the government is supposed to announce


the new man to take his place in the next few days, many names doing the


rounds... INAUDIBLE.


I do apologise, I think we have just lost Samir there but plenty more


available when it comes to India and the future of that economy, a huge


growth economy, and no change in the interest rate decision in that


country at the moment. Pesky gremlins! I have been speaking


to sum it all morning and have had three successful conversations with


him so far today. In India, to reiterate, the central bank has


decided to keep interest rates on hold today. Markets across the world


very much focused on central bank action, that is what is fuelling the


rally in Europe. We cannot show you the numbers right now but most of


the main market are headed higher again today. We will talk in more


detail about that in a moment but let's look at what is happening


stateside. Mickey Mouse and his colleagues will


be front and centre on Wall Street on Tuesday when Walt Disney reports


its earnings. Disney has had a few box office wins in the last quarter


the Jungle book. A drag on Disney the Jungle book. A drag on Disney


will be the declining subscribers for its sports network, ESPN.


Just how productive have American workers


We will find out a little later when the US Labor Department


releases data on the hourly output per worker.


And finally, Solar City will also be reporting earnings on Tuesday.


This is the company that electric car company Tesla has recently


Tesla shareholders still have to vote on the deal


Joining us is Simon Derrick, chief market strategist


Welcome to the programme. I have brought up the market state on the


tablet, we are seeing a real rally on equities across the world. The


FTSE higher today, led by the likes of legal and General, for example.


What is going on, why are equities racing higher? The FTSE was at 14


month highs yesterday. The monetary and see has overwhelmed everything


else. A lot of the big risk events we were worried about this year, the


EU referendum has come and gone, Chinese currency devaluation, people


are no longer worried about that. Oil prices, people no longer


concerned about that. Central banks have overwhelmed all that with


easier Monetary Policy Committee will need to put that money to work


and low and behold we are here in a quiet, calm August and markets are


going up. There is relatively little for them to worry about until we get


maybe to the presidential election. Also we are all shopping, sitting in


a pub and drinking in the UK right now, the latest British Retail


Consortium numbers out of date. You say that as though it is a bad


thing! Is it because the sun is shining? There was that great


concern in the early aftermath of the referendum that people thought


we would get bad sets of numbers. The first real take on what happened


in July, pretty much on average from what we have seen in previous parts


of the year, and you are right it was food and in and fashion,


although there was a concern that a lot of it was heavily discounted.


Not big ticket items? No, Barclaycard's numbers suggested a


similar thing, we are out in restaurants and pubs. I would like


to think I have contributed to that somehow! You will next week in the


Lake District! Absolutely! Does booking directly


with a hotel save you money? We'll be talking to one firm


which says in most cases it does. You're with Business


Live from BBC News. Let's have a look at some


stories from around the UK. Two of Britain's biggest insurers


have announced double-digit Operating profits rose 10%


at Legal General and 18% at Standard Life, proving


to investors that they've so far managed to navigate the unchartered


waters after the Brexit vote. Theo Leggett joins us


in our Business Newsroom. Theo what's going right


for these companies? Pensions are big business for both


of these countries. Legal General, let's have a look, the share price.


It absolutely tanked in the wake of the Brexit vote but has been bumping


up since then and part of the reason is that areas of business have been


doing well despite the market's turmoil. According to Legal


General today, their pension annuities business saw sales of ?3.8


billion over the last year, nearly triple the previous year. The


markets have not taken that so well, the share price dipped this morning,


which might be partly because a lot of the extra business is taking


on pensions business from final salary company schemes, basically


taking in some money but taking on some risk. In other areas, Legal


General and Standard Life have done well because people are rushing to


safety, putting their money into investment products which has


boosted the number of assets under administration that both of these


companies have got. What is the longer term outlook for


the insurers? Not too bad, Standard Life has made


a big thing about expanding its geographical coverage, it is excited


about India and China for example. These companies operate in the long


term, you might have short-term blips caused by things like the EU


referendum result, a lot of short-term market turmoil, but both


of these companies are focused around long-term investments and


you. -- thank you.


We have had some news from Morrisons and Ocado, this is the online


grocery firm, announcing changes to the long standing tie-up, they say


that Morrisons .com will be ruled out across one of the UK to pick


produce from its own stories through taking a major stake in their new


delivery Centre in South London, it'll be interesting to see what is


going on with the sharers a result. -- shares as a result.


That's the verdict on having a bank account in Britain.


This morning the UK's competition watchdog has set out its proposals


Plenty more available on the live web page.


A quick look at how the markets are faring.


They are higher, the main markets. Following the lead from Japan, the


story in Asia as well. We will keep a close eye on those for you.


Trying to find the cheapest hotel deal can be hard work.


One firm called Triptease says the average person visits 38


Triptease works with hotels to compete with online booking


services like Booking.com and Hotels.com, which they say can


charge hoteliers a hefty commission on sales.


They're already working with over 8,000 hotels across the world,


It was set up here in the UK and co-founded by Charlie Osmond.


Key to its success is a price check widget which shows in real time


the prices of other online travel agencies, compared


The firm claims they can increase the number of direct


Charlie Osmond is with us - co-founder and CEO of Triptease.


Good morning. Can you explain in basic terms what exactly it is that


you offer hotels? This is a business to business company? Were helping


hotels with the biggest challenge, increasing more bookings directly on


their own website. The key issue for hotels at the moment is people


believe that prices are cheaper elsewhere through the online


intermediaries and when actually hotels often have the best rate. We


provide a price comparison that sits on the website and people on the


website can be shown that this price is equal to the market or better. I


understand the challenges hotels face because when you go online to


book a flight, you immediately by giving the hotel option and the car


option, everything is ready, it is very convenient. And it looks quite


cheap, you would not necessarily think about checking the Hotel


website? It turns out that two thirds of bookers will go to the


hotel website because they want more photos and information that they


will often come to the website and then leave because of this price


misunderstanding and what has been fascinating is that hotels around


the world has stood up for themselves and said, it is time for


us to be able to charge people cheaper prices directly and to get


better services. Whether that is the Hilton or Marriot or Continental


hotels, they are offering real incentives for direct burgers and we


think this will change consumer behaviour. Does begin directly


always save money? Not always, we have just done ?200 million cheques


over the last few months and the hotel is often cheaper, with online


brokers around 20% at the time. It is good to shop around and that is


something we're trying to do, increase transparency. You offer


this service of driving traffic towards their website but you also


offer a lot of analysis that you have gathered with this research?


Yes, when we started, we firstly try to help one hotel at the time but we


have got scale, over 10,000 Hotel properties and that allows us to


analyse the way people search and what they are looking for and use


that for best practice to help hotels individually. Why decide to


do this? You set of this company some years ago, why did you decide


to do this? This is my third start-up, I always promised I would


never do that again! I was going through what I always find is a very


painful annual experience of booking the family holiday and I got so


frustrated, the amount of time that I was wasting planning a trip and I


felt there has to be a better way, improvements that can be made to the


online process so we launched into this. Why call this Triptease? This


is likely to put women in the hotel industry off? Len Webber say that we


find the opposite. It comes down to the fact that every year, hundreds


of thousands of companies are launched and we want to be in the


top zero. 1% and you must stand out, if you are bland people will forget


you. If it means pushing risks, but fundamentally, if you're not


prepared to do that, you will end up being a company we do not talk


about. The first two did not work? What is your top tip for somebody


trying to start something? My first two start-ups did very well but with


Triptease we two different things did not work out. A lot of people


are working at their desks and it might be worried about what you say!


What we learned with Triptease is even though we knew we wanted to go


to the market and there was an opportunity, we at a very lean


start-up approach, constantly iterating, trying one thing that did


not work, trying another, trying the third, that did work. You have to


constantly keep trying things and testing. And the nice thing is


today, you can inexpensively try something and see if it works and


then move on. Great, Charlie, thank you very much.


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


The Business Live pages where you can stay ahead with all of the


breaking business news. We will keep you up-to-date with the latest


details, with insight and analysis from the BBC's team around the


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Business Live web page... And on Twitter... And you can find us on


Facebook. Business Live, on TV and online, whenever you need to know.


Simon is back. This story is in York times, about Donald Trump, he


stocking tax and very much his economics and we have been


discussing, favouring pinstripes over blue-collar workers? For a


candidate supposedly in favour of the working class, he clearly has a


soft spot for the 1%? Trying to win back the Republican core voters,


this is caught Republican economics but in terms of the message, it is


quite smart because here he reveals, sending a message to Republican


voters and wealthy voters, but by being in Detroit he has sent a clear


message to blue-collar workers and strong message about International


Trade as well. Talking about trade agreements, going after people like


Japan and China, but he has called currency manipulators in the past


but there is something for everybody. Maybe that is the wise


thing about what he is doing. Let us talk about Michael Phelps, the


American swimmer who got his 19th medal at the American Olympics. This


article in the Wall Street Journal talks about how he is reinventing


himself? They say there is no second chances and I were struggling to


think of other American athletes that have come back after some of


the setbacks that he has had. I think maybe Tiger Woods is the


closest I can think of. He is trying to get fresh sponsorship and at the


moment he is the face of Amica, and beef jerky and hot towels! That go


hot tubs. It is interesting. We had this conversation about Maria


Sharapova, she was given a two-year ban for being involved in


international tennis so she is in that in between world and there is a


way back, it would seem, if he is successful? This is his last


Olympics, will he come back? If you are a sponsor, looking for the next


eight years, able find a better candidate than Michael Phelps. Given


his past history and his future in terms of sport. One last article,


this made us giggle! The New York Times, America is completely


flummoxed by Chip and pin, they don't like the noise, the beeping,


they say it is like the sign of failure? First world problems! --


sound of. Get over yourself! I love it, it is fantastic. I love being


able to use contactless, I use it on transport, in shops, restaurants. It


is so fast! You would think the biggest economy in the world would


love this? Perhaps it is the fact that if you're in the midwest,


perhaps there is less security concerns, perhaps some shops do not


invest in it. But it is fantastic! I love it! Thank you so much and enjoy


your holiday!


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