:00:00. > :00:08.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:09. > :00:10.Raising a glass to a mega drinks deal.
:00:11. > :00:13.The world's two biggest brewers are set to complete
:00:14. > :00:15.their merger today - creating a giant that will control
:00:16. > :00:19.Live from London, that's our top story on Monday,
:00:20. > :00:39.The deal between Anheuser-Busch InBev and SABMiller is one
:00:40. > :00:42.of the biggest ever seen in the drinks industry.
:00:43. > :00:47.We'll assess what it means for the sector and consumers.
:00:48. > :00:49.Also in the programme, is Samsung suspending production
:00:50. > :00:54.of its Galaxy Note 7 smartphone after a series of fires?
:00:55. > :01:01.We'll be checking that out with our Asia Business hub.
:01:02. > :01:13.Down again, as HSBC forecasts the pound could hit 1.10 dollars.
:01:14. > :01:20.We were here from a top scientist who says his DNA analysis device
:01:21. > :01:24.holds the key to stopping the rise of the superbug and deadly diseases.
:01:25. > :01:27.And the virtual messaging service Snapchat is said to be readying
:01:28. > :01:33.itself for market location next year. Some say it is worth $25
:01:34. > :01:36.billion. Is it another example of an overpriced social media phenomena or
:01:37. > :01:47.do you think it is worth it? Use the hashtag.
:01:48. > :01:56.It's more than likely that by the end of the day the world's
:01:57. > :01:59.two largest brewers will be saying cheers to a mega-merger that leads
:02:00. > :02:04.to one company controlling nearly a third of the worlds beer market.
:02:05. > :02:07.So what does the tie up of Anheuser-Busch InBev
:02:08. > :02:14.and SABMiller mean for the industry and beer drinkers?
:02:15. > :02:16.Well, it's a deal worth $104 billion dollars -
:02:17. > :02:19.and as I mentioned combines the world's two biggest brewers.
:02:20. > :02:22.The newly-created firm will produce about a third of the world's beer.
:02:23. > :02:25.Belgium-based AB InBev's brands include Stella Artois,
:02:26. > :02:27.Corona and Budweiser, while UK-based SABMiller produces
:02:28. > :02:37.But not only will the name SABMiller go in the take over -
:02:38. > :02:44.Over the next few years AB InBev is expected to gradually cut
:02:45. > :02:50.about 3%, that's around 5,500 jobs - from its enlarged workforce.
:02:51. > :02:56.The job cuts will form part of an annual savings drive amounting
:02:57. > :03:01.to some 1.4 billion dollars - and despite the newly formed company
:03:02. > :03:04.having a 30% market share, the competition in the beer
:03:05. > :03:07.All mass-market brewers are looking to cut production and distribution
:03:08. > :03:10.costs in the face of rivalry from smaller independent brands
:03:11. > :03:37.I'm joined by the Alcoholic Drinks Analyst, Anne. The ink is drying on
:03:38. > :03:41.the deal. Tel us what the couples had to do to pass completion rules?
:03:42. > :03:48.There is a lot they had to give up to make it work, China and the US,
:03:49. > :03:53.they had to give up SAB Miller showing the joint ventures. It was
:03:54. > :03:58.always going to be tense, in terms of passing regulations. In Europe,
:03:59. > :04:03.SABMiller's brands have mostly had to go. It focuses the acquisition on
:04:04. > :04:07.emerging markets like Latin America. The two coming together, it makes
:04:08. > :04:10.the world's biggest, controlling a third of the market. Is that a
:04:11. > :04:16.concern for the market in general, the likes of Heineken and others
:04:17. > :04:19.really concerned? It will make quite a difference. I don't think there
:04:20. > :04:22.will be overly concerned. When you look at the market level, there will
:04:23. > :04:26.not be too much change to patterns of competition. Now they have passed
:04:27. > :04:32.the regulations, the overlap between SABMiller's countries and
:04:33. > :04:34.Anheuser-Busch InBev, there is not much overlap. Heineken and Carlsberg
:04:35. > :04:40.are going to be competing, market by market. What will they get on with
:04:41. > :04:44.first, as a newly merged company question mark element the cost
:04:45. > :04:53.savings is going to be key. There is a lot of work to be done, joining
:04:54. > :04:57.such huge companies. In the short term there will be focused on making
:04:58. > :05:03.it work. In the long term we have brands like Budweiser, they might
:05:04. > :05:07.consider putting that into a new markets. We will watch this space
:05:08. > :05:12.closely. You are an alcoholic drinks analyst, do you have to test it all,
:05:13. > :05:14.try at all? Occasionally! It is early in the morning, so completely
:05:15. > :05:19.with it. The entertainment company co-owned
:05:20. > :05:22.by Hollywood director, Steven Spielberg, is to join forces
:05:23. > :05:24.with a major Chinese Amblin will join with
:05:25. > :05:29.the Alibaba Group to produce films Alibaba Pictures, which is led
:05:30. > :05:35.by the e-commerce billionaire Jack Ma, will take a minority stake
:05:36. > :05:43.in Amblin as part of the agreement. Facebook paid $5.28 million in UK
:05:44. > :05:45.corporation tax last year, as it expanded its business
:05:46. > :05:47.in the UK. It is a big increase
:05:48. > :05:50.on the $5,500 paid in 2014, which prompted an outcry
:05:51. > :05:52.from campaigners who argued it But critics may still be riled
:05:53. > :06:03.by the fact that the company will receive a tax credit
:06:04. > :06:05.of $14 million, which can The firm said it was "proud" to have
:06:06. > :06:14.grown its business in the UK. The Korean electronics giant Samsung
:06:15. > :06:18.is suspending production of its flagship smartphone -
:06:19. > :06:20.that's according to The Galaxy Note 7 has made
:06:21. > :06:25.headlines, following reports that Leisha Chi has been
:06:26. > :06:42.following the story. Reuters is picking up on this, as
:06:43. > :06:46.well. What is the latest? Well, it looks like Samsung is in major
:06:47. > :06:51.damage control. Shares today fell by as much as 5% before closing 2%
:06:52. > :06:58.lower on these reports of them halting production of the Samsung
:06:59. > :07:01.Galaxy Note seven. It is the most expensive device. Customers said
:07:02. > :07:05.there were safety problems with replacement phones, the ones being
:07:06. > :07:08.given in exchange for the faulty ones with exploding batteries.
:07:09. > :07:11.Samsung issued a statement saying that they are making temporary
:07:12. > :07:15.adjustments to the production schedule and that they planned to
:07:16. > :07:24.conduct more in-depth inspections and improve quality control. There
:07:25. > :07:29.are concerns. We have seen AT and T Mobile stopping the sale of the
:07:30. > :07:36.Galaxy Note 7 because of the batteries catching fire. We have
:07:37. > :07:44.already seen 2.5 million units recalled. The crisis looks far from
:07:45. > :07:54.over. Thank you, as always. A quick look at the numbers, in Tokyo, the
:07:55. > :07:56.In Tokyo, the Nikkei is closed for a public holiday -
:07:57. > :07:59.and in Hong Kong, trade was pretty thin because of
:08:00. > :08:02.Samsung Electronics one of the biggest losers -
:08:03. > :08:06.as that Galaxy Note 7 crisis resurfaced.
:08:07. > :08:10.This is what Europe looks like right now.
:08:11. > :08:14.The weak pound giving another boost to the FTSE100 - we'll talk more
:08:15. > :08:29.HSBC are saying it could hit parity with the euros and $1.10.
:08:30. > :08:35.and Michelle's got details of what's ahead on Wall Street this week.
:08:36. > :08:39.Bank profits will be in the spotlight towards the end of the
:08:40. > :08:43.week, even though Wall Street is betting the Federal Reserve will
:08:44. > :08:46.hike in December. Lower interest rates are continuing to squeeze the
:08:47. > :08:51.financial sector's ability to make money. As a result, JPMorgan Chase
:08:52. > :08:56.is poised to report a decline in third-quarter profits this Thursday.
:08:57. > :09:01.Scandal over accounts at Wells Fargo is also likely to cast a shadow over
:09:02. > :09:14.earnings. The third-quarter earnings season kicks off in earnest earlier
:09:15. > :09:18.in the week, when image major metal company announces its results. A
:09:19. > :09:19.busy week for economic data, with reports on retail sales and factory
:09:20. > :09:30.output. We are joined by James Bevan. Nice
:09:31. > :09:38.to see you. A lot going on today. Lots of bits of news coming out. The
:09:39. > :09:41.pound is sinking today. What is grabbing your attention? The weak
:09:42. > :09:47.pound is going to make it really difficult for the Government to fund
:09:48. > :09:54.the deficit. It will make it worse before it gets better, a big worry
:09:55. > :09:59.for the economy. The pound is down to $1.23, HSBC forecasts it could go
:10:00. > :10:06.as low as $1.10. Parity with the euro, is that the stage we are at?
:10:07. > :10:12.HSBC are leading the charge on how low it will go, I am on $1.15. It is
:10:13. > :10:16.clear to keep the economy going we will have to have a weaker economy
:10:17. > :10:21.and interest rates remain very low. As the Deutsche Bank, shares down
:10:22. > :10:27.3%. We keep talking about this deal that the boss will broker with the
:10:28. > :10:31.boss in the United States, but it is not coming? It is not just a problem
:10:32. > :10:34.of the deal, it is a real challenge in the European banking system. They
:10:35. > :10:39.are just not making profits. It is really hard for banks to make money
:10:40. > :10:43.in the current very tough regulatory environment, in a climate where
:10:44. > :10:50.Europe has negative interest rates. When it comes to what can be done,
:10:51. > :10:53.we are seeing anecdotal evidence about companies looking overseas,
:10:54. > :10:56.about whether places like Frankfurt are trying to steal the lead on
:10:57. > :11:02.London as a result of the Brexit vote. Then we see big changes in the
:11:03. > :11:07.value of the pound, what can be done? Is it out of the hands of the
:11:08. > :11:11.policymakers? Absolutely not. We need Mr Hannan to step up to the
:11:12. > :11:14.table at the Autumn Statement and say, guys, I'm going to take the
:11:15. > :11:20.policy steps necessary to keep the boat afloat. He can most certainly
:11:21. > :11:23.spend money, he can turn away from austerity, he can commit to fast
:11:24. > :11:29.growth of the UK economy. That would be very good news in terms of both
:11:30. > :11:33.market sentiment and non-domestic investors thinking more broadly
:11:34. > :11:37.about what lies ahead for the UK. Thank you very much for your
:11:38. > :11:42.contribution. He will be back to talk about Snapchat, Facebook and
:11:43. > :11:47.other stories. Let us know if you think it is worth the valuation.
:11:48. > :11:49.Don't use Snapchat, because it will disappear and ten seconds and we
:11:50. > :11:50.will not see it. Halting the rise of the superbug -
:11:51. > :11:53.we look at new technology being used in the fight against global disease
:11:54. > :11:56.- and the company behind it, You're with Business Live from BBC
:11:57. > :12:03.News Did RBS squeeze struggling companies
:12:04. > :12:06.it was supposed to be helping - That's the allegation
:12:07. > :12:09.based on an investigation Confidential documents show that RBS
:12:10. > :12:16.sought to profit by buying up assets cheaply from struggling businesses
:12:17. > :12:33.and bank staff could boost bonuses Lawrence Tomlinson wrote a report
:12:34. > :12:39.into the issue. Just explain what happened in your instance. Good
:12:40. > :12:47.morning. I wrote a report, basically outlining exactly what Buzzfeed are
:12:48. > :12:53.saying. That RBS crushed British businesses purely for profit. This
:12:54. > :12:57.that have been leaked. It has been that have been leaked. It has been
:12:58. > :13:02.rumbling on for some time. What are you expecting to happen now? My
:13:03. > :13:05.report was written three years ago and the FCA having doing an
:13:06. > :13:10.investigation for three years. It is about time that came out. It is also
:13:11. > :13:17.about time Ross McEwing put his hands up to this and said, you know,
:13:18. > :13:23.GIG was a pretty bad unit and look at some kind of redress scheme for
:13:24. > :13:28.the businesses damaged. We are talking about something like 15,000
:13:29. > :13:32.British businesses that went through the department, that they claimed
:13:33. > :13:38.was not for profit. According to the secret documents, into thousand and
:13:39. > :13:46.11, they made $1.1 billion for the bank. -- in 2011. We must mention
:13:47. > :13:48.the RBS statement. In a statement RBS has acknowledged
:13:49. > :13:51.that it could and should have done It went on to say that
:13:52. > :13:54."Despite a number of investigations that involved a detailed review
:13:55. > :13:57.of all the evidence, including reviewing millions
:13:58. > :13:58.of pages of documents, we have seen nothing to support
:13:59. > :14:01.the allegations that the bank artificially distressed otherwise
:14:02. > :14:02.viable SME businesses or deliberately caused
:14:03. > :14:04.them to fail". In regard to GRG the bank also said
:14:05. > :14:26."Nor did it buy their assets That is the official RBS response to
:14:27. > :14:30.that story. Gatwick bosses possibly building a second runway, even if it
:14:31. > :14:34.does not get the expansion, it goes to Heathrow, they might build
:14:35. > :14:38.another one anyway? Big week for news on that, stay tuned.
:14:39. > :14:43.The world's two biggest brewing companies are set
:14:44. > :14:51.It's a tie up between Anheuser-Busch InBev
:14:52. > :14:54.and SABMiller is worth $104 billion and would create
:14:55. > :14:58.a company controlling a third of the global beer market.
:14:59. > :15:04.I remember when it was announced 13 months ago and there was the
:15:05. > :15:06.discussion about whether it will happen because it is huge? Well, the
:15:07. > :15:11.ink is drying! A quick look at how
:15:12. > :15:22.markets are faring. Medical advances take
:15:23. > :15:28.time, and money. But our next guest says
:15:29. > :15:31.the technology his firm makes is revolutionising the way
:15:32. > :15:32.scientific research Oxford Nanopore Technologies
:15:33. > :15:35.specialises in DNA sequencing or cataloguing the order
:15:36. > :15:40.of molecular building blocks. To do this the bio-tech firm has
:15:41. > :15:43.developed a pocket sized device that can be used on all living things,
:15:44. > :15:46.from human beings to bacteria. The Minion device is a portable DNA
:15:47. > :15:52.sequencer which has huge potential in markets such as food and water
:15:53. > :15:59.monitoring, healthcare, The goal of the company
:16:00. > :16:05.is to enable the analysis of any living thing,
:16:06. > :16:10.by any person, in any environment . In August 2016, Nasa performed
:16:11. > :16:12.DNA sequencing in space on the International Space Station
:16:13. > :16:20.using the Minion device. Oxford Nanopore Technologies is now
:16:21. > :16:22.valued at over $1 billion. Dr Gordon Sanghera, CEO
:16:23. > :16:33.of Oxford Nanopore Technologies. Nice to see you. Welcome. And he is
:16:34. > :16:41.warmed with the device. What is it? How does it work? Show us the
:16:42. > :16:47.device. So this is the world's first and only portable DNA sequencer. So
:16:48. > :16:57.we can get DNA information live in real-time. What's it telling you
:16:58. > :17:04.now? It isn't telling me anything. You would put a swab, a blood sample
:17:05. > :17:07.or a urine sample or an environmentalal sample from a
:17:08. > :17:12.reservoir and you would apply it here like a drop of blood and in
:17:13. > :17:17.real-time, it will give you DNA information. No other technology can
:17:18. > :17:20.do that. All existing technologies today are large central laboratory
:17:21. > :17:25.facilities. That take many, many days. What is that replacing? Give
:17:26. > :17:33.us a sense of the scale of something that would be in a lab versus that
:17:34. > :17:36.port bli? The best analogy is to think about now the technology
:17:37. > :17:42.evolved for digital photography. So in the old days we had a reel of
:17:43. > :17:47.film. Woe sent it off to -- we sent it off to a central facility, Boots,
:17:48. > :17:53.big machines around the back whirring a week away taking a week
:17:54. > :17:59.or so to get your film back. This is like digital photography which means
:18:00. > :18:04.it is real-time and it is like the ability to have so much more power
:18:05. > :18:09.in real-time. Where can that information go to? Can it go to your
:18:10. > :18:12.portable device? If you are in the middle of Africa and you are trying
:18:13. > :18:16.to get a sense of the environment you're in or the dangers around you
:18:17. > :18:22.or disease or what have you, can you get it sent to your portable device?
:18:23. > :18:28.It is indeed. It can be plugged into a laptop and run locally on a laptop
:18:29. > :18:33.and it was used in Africa to look at Ebola and it is being used to track
:18:34. > :18:36.Zika. The key element is the real-time nature so we're tracking
:18:37. > :18:40.and trending in real-time, not after the event. And then we're having to
:18:41. > :18:45.try and shutdown particularly when you think about something like Zika
:18:46. > :18:51.where the spread of infection is going very quickly. We touched on in
:18:52. > :18:54.this the introduction, but to get the medical advances, you need time
:18:55. > :18:58.and money. You have been successful in attracting money. How do you
:18:59. > :19:03.explain that to your investors in terms of the practical applications
:19:04. > :19:07.for? Where would it be used and what difference will it make? So we've
:19:08. > :19:11.raised, we have been around for 11. We have 300 people, we are not a
:19:12. > :19:15.start-up. This is not some idea of when will it come? This is
:19:16. > :19:20.commercially available. We have invested ?350 million. Now 11 years
:19:21. > :19:23.ago when we spoke to traditional venture capital companies, firms,
:19:24. > :19:28.who have a three to five year turn around time, this was a bigger play
:19:29. > :19:32.and they were fortunate to get investors who saw the long-term
:19:33. > :19:37.view, the disruptive nature, how this could be a game changer. How we
:19:38. > :19:40.could start to fight the rise of superbugs, how we can track and
:19:41. > :19:45.trend and control things like Zika and they bought into the idea of
:19:46. > :19:49.patient capital to make a big technology play in the UK. Is it
:19:50. > :19:55.selling now and is it making money for those that invested 11 years
:19:56. > :20:00.ago? It is. We are in the foot hills of commercialisation. We launched
:20:01. > :20:06.the product 15 months ago. So who are your clients? The bulk of market
:20:07. > :20:10.is researchers, early adopters, people who do genetic research in
:20:11. > :20:15.laboratories, but we believe quickly the technology will leapfrog into
:20:16. > :20:19.applied markets. And once the clients have got this and saturated
:20:20. > :20:23.that market, do you have something else that you will develop? So two
:20:24. > :20:29.things, the way to think about the market today for researchers, there
:20:30. > :20:37.are 8,000 large central laboratory DNA sequencers. In our first year
:20:38. > :20:39.we've placed 3,000 of these. There are probably 100,000 molecular
:20:40. > :20:44.biologists who would want one of these to do desk top manipulation of
:20:45. > :20:48.DNA measurement, trending and tracking. So there is a huge market
:20:49. > :20:54.just in the research markets, but when you think about for example we
:20:55. > :21:01.had the problem with an infection of water in Preston. Having real-time
:21:02. > :21:05.DNA information along that supply chain from the reservoir to your tap
:21:06. > :21:09.would mean that you would prevent such outbreaks. So the applied
:21:10. > :21:13.markets are going to be absolutely huge for this kind of technology.
:21:14. > :21:20.It is fascinating stuff. It really is. I've learnt a lot this morning.
:21:21. > :21:21.Really nice to see you. The Chief Executive of Oxford Nanopore
:21:22. > :21:26.Technologies. Thank you very much. In a moment we'll take a look
:21:27. > :21:29.through the business pages but first here's a quick reminder of how
:21:30. > :21:35.to get in touch with us. The Business Live page is where you
:21:36. > :21:39.can stay ahead with all the day's breaking business news. We'll keep
:21:40. > :21:42.you up-to-date with the latest details with insight and analysis
:21:43. > :21:47.from the BBC's team of editors right around the world. And we want to
:21:48. > :21:55.hear from you too. Get involved on the BBC Business Live web page.
:21:56. > :22:00.On on Twitter. And you can find us on Facebook.
:22:01. > :22:14.Business Live, on TV and online whenever you need to know.
:22:15. > :22:26.Ben is taking charge of the tablet! Sally hadn't loaded the stories. .
:22:27. > :22:35.James is back. Are you a Snapchat user? No. . Why could it be worth
:22:36. > :22:38.?25 billion? The capacity for companies like this to generate
:22:39. > :22:42.significant revenues from advertising and cash payment, you
:22:43. > :22:48.can send money through Snapchat and access stories which have been
:22:49. > :22:51.stored from your friends and the expectation is that ads will be
:22:52. > :22:56.slithered into the news flow and both of those can generate
:22:57. > :23:00.substantial revenues. With Snapchat, they are not making revenues right
:23:01. > :23:05.now, but they have loads and loads of users... They are not making
:23:06. > :23:12.profits. But they have many, many users? Quite right. The story for
:23:13. > :23:15.all investors to contemplate is how much money can they make and how
:23:16. > :23:18.quickly can it roll out? We will talk about Facebook in a MinION, but
:23:19. > :23:23.it is very clear that Facebook surprised a lot of people myself
:23:24. > :23:30.included, as who how quickly they can ramp up revenues and exceeding
:23:31. > :23:35.analysts estimates quarter after quarter. I remember we were cynical
:23:36. > :23:40.when Facebook was floated. I was as well, were you Ben? I mean, let's
:23:41. > :23:48.talk Facebook 11 million tax credit it is going to get after vowing to
:23:49. > :23:51.pay more to the taxman. It is paying more tax, but it will be able to off
:23:52. > :23:56.set some later on. Well, there has been a change this the tax code and
:23:57. > :24:00.HMRC are acting properly. The Government set the rule book. This
:24:01. > :24:04.is to do with the setting aside money for an options scheme as part
:24:05. > :24:09.of remuneration, so it is legitimate. But there is a global
:24:10. > :24:12.issue about how much tax these entities should be paying anyway.
:24:13. > :24:15.This is about what Facebook is paying in the UK. It is the UK
:24:16. > :24:20.Government chasing after Facebook, but it is a global organisation and
:24:21. > :24:24.it is a hot subject here and in many countries around the world. It is
:24:25. > :24:28.because companies have demonstrated that they put shareholder value
:24:29. > :24:32.first. They will pay legitimate taxes, but they will use the law to
:24:33. > :24:36.pay as little tax as possible and countries generally compete in order
:24:37. > :24:39.to have companies in their jurisdictions so we have a
:24:40. > :24:43.relatively low corporation tax. You think back to the austerity that we
:24:44. > :24:47.faced in the UK. It has been borne by people who have lost jobs, by
:24:48. > :24:51.private individuals who've been paying more tax, companies actually
:24:52. > :24:55.have been paying less tax as a rate. Another day, another warning on
:24:56. > :25:00.Brexit. This time Wall Street bosses weighing into this. JP Morgan and
:25:01. > :25:04.Morgan Stanley potentially looking elsewhere for their business, not
:25:05. > :25:09.necessarily just Frankfurt because we sort of are assuming Frankfurt
:25:10. > :25:14.would be where financial services would go to? Frankfurt have been
:25:15. > :25:20.blowing the trumpet saying guys you should come here. So has Paris. New
:25:21. > :25:22.York will be a very hot place for these companies to operate because
:25:23. > :25:26.they are American. They have a lot of businesses out there already, why
:25:27. > :25:31.do they need to be in the UK? What about the Far East? Many of them
:25:32. > :25:37.have businesses in the Far East. Of course, in a 24 hour global
:25:38. > :25:41.business, you have to pass the buck from office to office to office
:25:42. > :25:47.which includes significant exposure in the Far East. If you said where
:25:48. > :25:53.should investors be contemplating, it is developing markets with new
:25:54. > :25:56.market emergence. You made it snappy. We got there in the end when
:25:57. > :26:16.the tablet was loaded! Hello there. Another pretty chilly
:26:17. > :26:17.week in store. In fact, things are set to turn cooler as the week wears