10/10/2016 BBC Business Live

This is Business Live from BBC News with Ben Thompson and Sally Bundock.

Raising a glass to a mega drinks deal.

The world's two biggest brewers are set to complete

their merger today - creating a giant that will control

Live from London, that's our top story on Monday,

The deal between Anheuser-Busch InBev and SABMiller is one

of the biggest ever seen in the drinks industry.

We'll assess what it means for the sector and consumers.

Also in the programme, is Samsung suspending production

of its Galaxy Note 7 smartphone after a series of fires?

We'll be checking that out with our Asia Business hub.

Down again, as HSBC forecasts the pound could hit 1.10 dollars.

We were here from a top scientist who says his DNA analysis device

holds the key to stopping the rise of the superbug and deadly diseases.

And the virtual messaging service Snapchat is said to be readying

itself for market location next year. Some say it is worth $25

billion. Is it another example of an overpriced social media phenomena or

do you think it is worth it? Use the hashtag.

It's more than likely that by the end of the day the world's

two largest brewers will be saying cheers to a mega-merger that leads

to one company controlling nearly a third of the worlds beer market.

So what does the tie up of Anheuser-Busch InBev

and SABMiller mean for the industry and beer drinkers?

Well, it's a deal worth $104 billion dollars -

and as I mentioned combines the world's two biggest brewers.

The newly-created firm will produce about a third of the world's beer.

Belgium-based AB InBev's brands include Stella Artois,

Corona and Budweiser, while UK-based SABMiller produces

But not only will the name SABMiller go in the take over -

Over the next few years AB InBev is expected to gradually cut

about 3%, that's around 5,500 jobs - from its enlarged workforce.

The job cuts will form part of an annual savings drive amounting

to some 1.4 billion dollars - and despite the newly formed company

having a 30% market share, the competition in the beer

All mass-market brewers are looking to cut production and distribution

costs in the face of rivalry from smaller independent brands

I'm joined by the Alcoholic Drinks Analyst, Anne. The ink is drying on

the deal. Tel us what the couples had to do to pass completion rules?

There is a lot they had to give up to make it work, China and the US,

they had to give up SAB Miller showing the joint ventures. It was

always going to be tense, in terms of passing regulations. In Europe,

SABMiller's brands have mostly had to go. It focuses the acquisition on

emerging markets like Latin America. The two coming together, it makes

the world's biggest, controlling a third of the market. Is that a

concern for the market in general, the likes of Heineken and others

really concerned? It will make quite a difference. I don't think there

will be overly concerned. When you look at the market level, there will

not be too much change to patterns of competition. Now they have passed

the regulations, the overlap between SABMiller's countries and

Anheuser-Busch InBev, there is not much overlap. Heineken and Carlsberg

are going to be competing, market by market. What will they get on with

first, as a newly merged company question mark element the cost

savings is going to be key. There is a lot of work to be done, joining

such huge companies. In the short term there will be focused on making

it work. In the long term we have brands like Budweiser, they might

consider putting that into a new markets. We will watch this space

closely. You are an alcoholic drinks analyst, do you have to test it all,

try at all? Occasionally! It is early in the morning, so completely

with it. The entertainment company co-owned

by Hollywood director, Steven Spielberg, is to join forces

with a major Chinese Amblin will join with

the Alibaba Group to produce films Alibaba Pictures, which is led

by the e-commerce billionaire Jack Ma, will take a minority stake

in Amblin as part of the agreement. Facebook paid $5.28 million in UK

corporation tax last year, as it expanded its business

in the UK. It is a big increase

on the $5,500 paid in 2014, which prompted an outcry

from campaigners who argued it But critics may still be riled

by the fact that the company will receive a tax credit

of $14 million, which can The firm said it was "proud" to have

grown its business in the UK. The Korean electronics giant Samsung

is suspending production of its flagship smartphone -

that's according to The Galaxy Note 7 has made

headlines, following reports that Leisha Chi has been

following the story. Reuters is picking up on this, as

well. What is the latest? Well, it looks like Samsung is in major

damage control. Shares today fell by as much as 5% before closing 2%

lower on these reports of them halting production of the Samsung

Galaxy Note seven. It is the most expensive device. Customers said

there were safety problems with replacement phones, the ones being

given in exchange for the faulty ones with exploding batteries.

Samsung issued a statement saying that they are making temporary

adjustments to the production schedule and that they planned to

conduct more in-depth inspections and improve quality control. There

are concerns. We have seen AT and T Mobile stopping the sale of the

Galaxy Note 7 because of the batteries catching fire. We have

already seen 2.5 million units recalled. The crisis looks far from

over. Thank you, as always. A quick look at the numbers, in Tokyo, the

In Tokyo, the Nikkei is closed for a public holiday -

and in Hong Kong, trade was pretty thin because of

Samsung Electronics one of the biggest losers -

as that Galaxy Note 7 crisis resurfaced.

This is what Europe looks like right now.

The weak pound giving another boost to the FTSE100 - we'll talk more

HSBC are saying it could hit parity with the euros and $1.10.

and Michelle's got details of what's ahead on Wall Street this week.

Bank profits will be in the spotlight towards the end of the

week, even though Wall Street is betting the Federal Reserve will

hike in December. Lower interest rates are continuing to squeeze the

financial sector's ability to make money. As a result, JPMorgan Chase

is poised to report a decline in third-quarter profits this Thursday.

Scandal over accounts at Wells Fargo is also likely to cast a shadow over

earnings. The third-quarter earnings season kicks off in earnest earlier

in the week, when image major metal company announces its results. A

busy week for economic data, with reports on retail sales and factory

output. We are joined by James Bevan. Nice

to see you. A lot going on today. Lots of bits of news coming out. The

pound is sinking today. What is grabbing your attention? The weak

pound is going to make it really difficult for the Government to fund

the deficit. It will make it worse before it gets better, a big worry

for the economy. The pound is down to $1.23, HSBC forecasts it could go

as low as $1.10. Parity with the euro, is that the stage we are at?

HSBC are leading the charge on how low it will go, I am on $1.15. It is

clear to keep the economy going we will have to have a weaker economy

and interest rates remain very low. As the Deutsche Bank, shares down

3%. We keep talking about this deal that the boss will broker with the

boss in the United States, but it is not coming? It is not just a problem

of the deal, it is a real challenge in the European banking system. They

are just not making profits. It is really hard for banks to make money

in the current very tough regulatory environment, in a climate where

Europe has negative interest rates. When it comes to what can be done,

we are seeing anecdotal evidence about companies looking overseas,

about whether places like Frankfurt are trying to steal the lead on

London as a result of the Brexit vote. Then we see big changes in the

value of the pound, what can be done? Is it out of the hands of the

policymakers? Absolutely not. We need Mr Hannan to step up to the

table at the Autumn Statement and say, guys, I'm going to take the

policy steps necessary to keep the boat afloat. He can most certainly

spend money, he can turn away from austerity, he can commit to fast

growth of the UK economy. That would be very good news in terms of both

market sentiment and non-domestic investors thinking more broadly

about what lies ahead for the UK. Thank you very much for your

contribution. He will be back to talk about Snapchat, Facebook and

other stories. Let us know if you think it is worth the valuation.

Don't use Snapchat, because it will disappear and ten seconds and we

will not see it. Halting the rise of the superbug -

we look at new technology being used in the fight against global disease

- and the company behind it, You're with Business Live from BBC

News Did RBS squeeze struggling companies

it was supposed to be helping - That's the allegation

based on an investigation Confidential documents show that RBS

sought to profit by buying up assets cheaply from struggling businesses

and bank staff could boost bonuses Lawrence Tomlinson wrote a report

into the issue. Just explain what happened in your instance. Good

morning. I wrote a report, basically outlining exactly what Buzzfeed are

saying. That RBS crushed British businesses purely for profit. This

that have been leaked. It has been that have been leaked. It has been

rumbling on for some time. What are you expecting to happen now? My

report was written three years ago and the FCA having doing an

investigation for three years. It is about time that came out. It is also

about time Ross McEwing put his hands up to this and said, you know,

GIG was a pretty bad unit and look at some kind of redress scheme for

the businesses damaged. We are talking about something like 15,000

British businesses that went through the department, that they claimed

was not for profit. According to the secret documents, into thousand and

11, they made $1.1 billion for the bank. -- in 2011. We must mention

the RBS statement. In a statement RBS has acknowledged

that it could and should have done It went on to say that

"Despite a number of investigations that involved a detailed review

of all the evidence, including reviewing millions

of pages of documents, we have seen nothing to support

the allegations that the bank artificially distressed otherwise

viable SME businesses or deliberately caused

them to fail". In regard to GRG the bank also said

"Nor did it buy their assets That is the official RBS response to

that story. Gatwick bosses possibly building a second runway, even if it

does not get the expansion, it goes to Heathrow, they might build

another one anyway? Big week for news on that, stay tuned.

The world's two biggest brewing companies are set

It's a tie up between Anheuser-Busch InBev

and SABMiller is worth $104 billion and would create

a company controlling a third of the global beer market.

I remember when it was announced 13 months ago and there was the

discussion about whether it will happen because it is huge? Well, the

ink is drying! A quick look at how

markets are faring. Medical advances take

time, and money. But our next guest says

the technology his firm makes is revolutionising the way

scientific research Oxford Nanopore Technologies

specialises in DNA sequencing or cataloguing the order

of molecular building blocks. To do this the bio-tech firm has

developed a pocket sized device that can be used on all living things,

from human beings to bacteria. The Minion device is a portable DNA

sequencer which has huge potential in markets such as food and water

monitoring, healthcare, The goal of the company

is to enable the analysis of any living thing,

by any person, in any environment . In August 2016, Nasa performed

DNA sequencing in space on the International Space Station

using the Minion device. Oxford Nanopore Technologies is now

valued at over $1 billion. Dr Gordon Sanghera, CEO

of Oxford Nanopore Technologies. Nice to see you. Welcome. And he is

warmed with the device. What is it? How does it work? Show us the

device. So this is the world's first and only portable DNA sequencer. So

we can get DNA information live in real-time. What's it telling you

now? It isn't telling me anything. You would put a swab, a blood sample

or a urine sample or an environmentalal sample from a

reservoir and you would apply it here like a drop of blood and in

real-time, it will give you DNA information. No other technology can

do that. All existing technologies today are large central laboratory

facilities. That take many, many days. What is that replacing? Give

us a sense of the scale of something that would be in a lab versus that

port bli? The best analogy is to think about now the technology

evolved for digital photography. So in the old days we had a reel of

film. Woe sent it off to -- we sent it off to a central facility, Boots,

big machines around the back whirring a week away taking a week

or so to get your film back. This is like digital photography which means

it is real-time and it is like the ability to have so much more power

in real-time. Where can that information go to? Can it go to your

portable device? If you are in the middle of Africa and you are trying

to get a sense of the environment you're in or the dangers around you

or disease or what have you, can you get it sent to your portable device?

It is indeed. It can be plugged into a laptop and run locally on a laptop

and it was used in Africa to look at Ebola and it is being used to track

Zika. The key element is the real-time nature so we're tracking

and trending in real-time, not after the event. And then we're having to

try and shutdown particularly when you think about something like Zika

where the spread of infection is going very quickly. We touched on in

this the introduction, but to get the medical advances, you need time

and money. You have been successful in attracting money. How do you

explain that to your investors in terms of the practical applications

for? Where would it be used and what difference will it make? So we've

raised, we have been around for 11. We have 300 people, we are not a

start-up. This is not some idea of when will it come? This is

commercially available. We have invested ?350 million. Now 11 years

ago when we spoke to traditional venture capital companies, firms,

who have a three to five year turn around time, this was a bigger play

and they were fortunate to get investors who saw the long-term

view, the disruptive nature, how this could be a game changer. How we

could start to fight the rise of superbugs, how we can track and

trend and control things like Zika and they bought into the idea of

patient capital to make a big technology play in the UK. Is it

selling now and is it making money for those that invested 11 years

ago? It is. We are in the foot hills of commercialisation. We launched

the product 15 months ago. So who are your clients? The bulk of market

is researchers, early adopters, people who do genetic research in

laboratories, but we believe quickly the technology will leapfrog into

applied markets. And once the clients have got this and saturated

that market, do you have something else that you will develop? So two

things, the way to think about the market today for researchers, there

are 8,000 large central laboratory DNA sequencers. In our first year

we've placed 3,000 of these. There are probably 100,000 molecular

biologists who would want one of these to do desk top manipulation of

DNA measurement, trending and tracking. So there is a huge market

just in the research markets, but when you think about for example we

had the problem with an infection of water in Preston. Having real-time

DNA information along that supply chain from the reservoir to your tap

would mean that you would prevent such outbreaks. So the applied

markets are going to be absolutely huge for this kind of technology.

It is fascinating stuff. It really is. I've learnt a lot this morning.

Really nice to see you. The Chief Executive of Oxford Nanopore

Technologies. 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 page is where you

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

Ben is taking charge of the tablet! Sally hadn't loaded the stories. .

James is back. Are you a Snapchat user? No. . Why could it be worth

?25 billion? The capacity for companies like this to generate

significant revenues from advertising and cash payment, you

can send money through Snapchat and access stories which have been

stored from your friends and the expectation is that ads will be

slithered into the news flow and both of those can generate

substantial revenues. With Snapchat, they are not making revenues right

now, but they have loads and loads of users... They are not making

profits. But they have many, many users? Quite right. The story for

all investors to contemplate is how much money can they make and how

quickly can it roll out? We will talk about Facebook in a MinION, but

it is very clear that Facebook surprised a lot of people myself

included, as who how quickly they can ramp up revenues and exceeding

analysts estimates quarter after quarter. I remember we were cynical

when Facebook was floated. I was as well, were you Ben? I mean, let's

talk Facebook 11 million tax credit it is going to get after vowing to

pay more to the taxman. It is paying more tax, but it will be able to off

set some later on. Well, there has been a change this the tax code and

HMRC are acting properly. The Government set the rule book. This

is to do with the setting aside money for an options scheme as part

of remuneration, so it is legitimate. But there is a global

issue about how much tax these entities should be paying anyway.

This is about what Facebook is paying in the UK. It is the UK

Government chasing after Facebook, but it is a global organisation and

it is a hot subject here and in many countries around the world. It is

because companies have demonstrated that they put shareholder value

first. They will pay legitimate taxes, but they will use the law to

pay as little tax as possible and countries generally compete in order

to have companies in their jurisdictions so we have a

relatively low corporation tax. You think back to the austerity that we

faced in the UK. It has been borne by people who have lost jobs, by

private individuals who've been paying more tax, companies actually

have been paying less tax as a rate. Another day, another warning on

Brexit. This time Wall Street bosses weighing into this. JP Morgan and

Morgan Stanley potentially looking elsewhere for their business, not

necessarily just Frankfurt because we sort of are assuming Frankfurt

would be where financial services would go to? Frankfurt have been

blowing the trumpet saying guys you should come here. So has Paris. New

York will be a very hot place for these companies to operate because

they are American. They have a lot of businesses out there already, why

do they need to be in the UK? What about the Far East? Many of them

have businesses in the Far East. Of course, in a 24 hour global

business, you have to pass the buck from office to office to office

which includes significant exposure in the Far East. If you said where

should investors be contemplating, it is developing markets with new

market emergence. You made it snappy. We got there in the end when

the tablet was loaded! Hello there. Another pretty chilly

week in store. In fact, things are set to turn cooler as the week wears