18/10/2016

Download Subtitles

Transcript

:00:00. > :00:08.This is Business Live from BBC News with Rachel Horne and Sally Bundock.

:00:09. > :00:11.Paris attempts to romance business away from London

:00:12. > :00:17.Live from London, that's our top story on Tuesday

:00:18. > :00:39.Many in the City are sceptical - and think a move to the French

:00:40. > :00:45.Also in the programme - Shares of Netflix surged 20%

:00:46. > :00:48.in after hours trading as market watchers binge on the streaming

:00:49. > :00:53.giant's skyrocketing membership figures.

:00:54. > :00:55.European markets are open and trading -

:00:56. > :01:00.and there they are - London, Paris F frankfurt -

:01:01. > :01:02.and there they are - London, Paris, Frankfurt -

:01:03. > :01:04.UK waiting for inflation figures due in an hour -

:01:05. > :01:11.and lots of company news already out and moving the markets.

:01:12. > :01:14.And empowering young people to get an education and start businesses.

:01:15. > :01:16.We speak to Lily Lapenna - who's helping to give

:01:17. > :01:28.them the financial means to achieve their goals.

:01:29. > :01:39.We want to know which your ideal city is for work and play.

:01:40. > :01:45.It is no secret that Paris is trying to woo business away from London

:01:46. > :01:51.The campaign has started - here is the poster:

:01:52. > :02:01.Reads the ad that La Defense business district in Paris hopes

:02:02. > :02:05.There are warnings the city of London could lose its position

:02:06. > :02:08.as the only financial capital to rival New York, if foreign banks

:02:09. > :02:12.London currently accounts for 41 percent of global

:02:13. > :02:18.foreign exchange turnover, that is more than double New York -

:02:19. > :02:20.so says the Bank for International Settlements.

:02:21. > :02:23.And about 85 percent of Europe's hedge fund assets

:02:24. > :02:27.are managed in London, which also happens to be the leading

:02:28. > :02:32.market for international insurance and re-insurance.

:02:33. > :02:35.With me in the studio is Marie Celie Guillaume,

:02:36. > :02:37.Director of Defacto - and from the city of

:02:38. > :02:49.London, Jasper Lawler - from CMC markets.

:02:50. > :03:01.Good morning. Fork, play on words, is that about the weather or the

:03:02. > :03:08.confusion of Brexit? An element of both. It is using cliches and is a

:03:09. > :03:14.humanistic approach, because Brexit is a very serious matter. We thought

:03:15. > :03:18.it was good to have not too harsh of a campaign and to play on the

:03:19. > :03:23.cliches we have about each other. For centuries French and English

:03:24. > :03:25.have been competing, a long time ago they were fighting against each

:03:26. > :03:31.other and more recently we fought together. It is very important for

:03:32. > :03:41.us to see that. We are close, we love each other, even though...

:03:42. > :03:46.There is a strong bond between the French and the British. Before we

:03:47. > :03:51.bring in Jasper, why do you think Paris has got the edge? Since the

:03:52. > :03:57.referendum result many cities have been talking about why bankers need

:03:58. > :04:09.to go to the city. Why Paris? Paris is the centre of Europe, it is in

:04:10. > :04:18.the middle of Europe, we have a thriving business ecosystem, half of

:04:19. > :04:22.the companies are international, it's a very good place to do

:04:23. > :04:32.business and a very nice place to live in. That's a strong argument

:04:33. > :04:38.because when moving many employees, they will want to think about where

:04:39. > :04:44.they will want to live. Let's move to Jasper. We've heard the arguing

:04:45. > :04:50.for Paris but what is the argument for London? I would question whether

:04:51. > :04:57.London is any less foggy than Paris? I'm not sure if that's true. This

:04:58. > :05:02.argument about jobs moving from London to Paris is problematic for a

:05:03. > :05:08.couple of reasons. I think Paris, whilst being a great city, equally,

:05:09. > :05:16.Frankfurt, Dublin, London just has it all. And so, while Paris might be

:05:17. > :05:23.good in certain areas, we've got to remember London is bringing over

:05:24. > :05:28.people, jobs, not just jobs, people behind those jobs, the culture, the

:05:29. > :05:33.museums, the schools, people send their kids do, these things need to

:05:34. > :05:36.be considered if there is a mass exodus of people taking place.

:05:37. > :05:43.Secondly, the whole premise of this is the passport debate, London's

:05:44. > :05:50.access to Europe's tanking centres. That's a big?. It works both ways,

:05:51. > :05:54.European firms use it to access London, London uses it to access

:05:55. > :05:57.European firms. The result of the negotiations is going to be an

:05:58. > :06:00.agreement that works for both until there going to be the need to move

:06:01. > :06:06.the jobs. Jasper makes some good points there. France is known to be

:06:07. > :06:13.notoriously difficult when it comes to Labour laws. Although bankers may

:06:14. > :06:17.move easily, financial services may need to hire in France. Hiring and

:06:18. > :06:24.firing is very difficult there. It puts people off. It is not difficult

:06:25. > :06:28.but it is true that those laws need to be made more flexible. This has

:06:29. > :06:32.already started this year, there was a reform that made it more flexible

:06:33. > :06:36.and there are discussions going on and there is a very strong consensus

:06:37. > :06:43.between the Socialist party that is currently running the government and

:06:44. > :06:47.the Conservatives, we will go to more flexibility concerning higher

:06:48. > :06:52.wages. Think is a much freer time. Thank you for joining us. We

:06:53. > :06:56.appreciate your time this morning. Netflix has shaken off growth

:06:57. > :07:00.worries with new subscriber numbers that beat estimates

:07:01. > :07:02.and sent its shares soaring. The video streaming company added

:07:03. > :07:05.3.2 million international customers in the last three months,

:07:06. > :07:08.far more than the 2 million In the US, numbers rose 21%

:07:09. > :07:15.to 370,000 as hit shows such as Stranger Things and Narcos won

:07:16. > :07:22.over more subscribers. Samsung says it will compensate

:07:23. > :07:24.companies that made parts for the now discontinued

:07:25. > :07:27.Galaxy Note 7. The South Korean tech giant added

:07:28. > :07:30.that it would also look to offer the firms other work

:07:31. > :07:34.to cushion the blow. The Note 7 was recalled last month

:07:35. > :07:36.after battery fires, but when replacement phones

:07:37. > :07:38.experienced the same problem, According to the Reuters news

:07:39. > :07:46.agency, the troubled German finance giant Deutsche Bank has agreed

:07:47. > :07:49.to pay 38 million dollars to settle a silver price-fixing case

:07:50. > :07:52.in the United States. The case is understood to have

:07:53. > :07:54.involved allegations that the bank illegally conspired with other

:07:55. > :08:10.institutions to fix silver prices Another story making the headlines

:08:11. > :08:15.today in Asia is a Chinese company that wants to attract Hollywood.

:08:16. > :08:18.Karishma Vaswani is in Singapore tell us more.

:08:19. > :08:31.Nice to see you. Yet another attempt by China's richest man to forge

:08:32. > :08:39.closer ties with US film-makers. After buying over cinema chains,

:08:40. > :08:48.Dalian Wanda is trying to lure Hollywood to China's Soros. It is

:08:49. > :08:54.owned by China's richest man and they will give huge discounts to

:08:55. > :09:01.film at their new studio in Qingdao province. It is thought to be worth

:09:02. > :09:06.$5 billion. It opened its first Studios earlier this month and will

:09:07. > :09:13.be completed in 2018. They've set up a fund to give rebates to movie

:09:14. > :09:20.makers of 14%. The firm is aiming to attract Hollywood directors to

:09:21. > :09:24.China. They have dismissed concerns that this is a takeover of

:09:25. > :09:27.Hollywood, instead saying this is an opportunity for American film-makers

:09:28. > :09:31.and should not be seen as competition. Let's have a look at

:09:32. > :09:32.the markets. Stocks in Asia climbed thanks

:09:33. > :09:35.to a rebound in the oil price. Analysts are now thinking the market

:09:36. > :09:41.isn't as oversupplied Investors also eagerly waiting

:09:42. > :09:49.for China's GDP figures In Europe, shares were down

:09:50. > :10:09.yesterday but today. Keep an eye on the FTSE 100.

:10:10. > :10:10.Inflation figures out in less than an hour.

:10:11. > :10:13.And Samira Hussain has the details about what's ahead on Wall Street

:10:14. > :10:28.Yahoo will be reporting figures on Wednesday. Investors will be asking

:10:29. > :10:37.about the huge that breach. Remember Yahoo is being backed by Verizon so

:10:38. > :10:41.investors will be looking for updates on that. Goldman Sachs will

:10:42. > :10:43.be reporting. The Wall Street bank has been cutting jobs and

:10:44. > :10:51.streamlining its business to make up for the low resonant -- low revenue

:10:52. > :10:58.environment banks are experiencing. And as inflation edging towards the

:10:59. > :11:00.Federal reserve's goal of 2%? We will find it later today.

:11:01. > :11:02.Joining us is James Hughes, Chief Market Analyst

:11:03. > :11:21.Were you listening in earlier? London, I would say. I would like to

:11:22. > :11:32.stay. It would take a lot of business movement to make London not

:11:33. > :11:41.the financial capital. We would be talking 50% of the businesses

:11:42. > :11:52.moving. We don't know that Brexit is that bad.

:11:53. > :12:06.Let's move on to net flicks, what is going on with the company? I think

:12:07. > :12:10.this was a big surprise because we expected, the majority of the

:12:11. > :12:13.saturation is in the US and they've spent a few derides of money pushing

:12:14. > :12:25.into every country with high-speed broadband. The have said they will

:12:26. > :12:30.keep moving. Burberry and Ryanair, without warning, but Burberry survey

:12:31. > :12:39.will be -- said they will be boosted by weaker sterling. Absolutely.

:12:40. > :12:42.Burberry are a luxury goods, and only 10% of their sales are UK

:12:43. > :12:46.consumers. A lot of that is international business. People

:12:47. > :12:51.coming over to the UK and spending money in it. You can see why that is

:12:52. > :12:55.positive. People flying away on holiday from within the UK it is not

:12:56. > :12:57.such a good story. Thank you very much. We will be discussing other

:12:58. > :13:00.stories in about five minutes. We'll speak to the founder of

:13:01. > :13:05.an organisation called MyBank that gives micro loans to young people

:13:06. > :13:10.to help them achieve their goals. Now a look at some of the stories

:13:11. > :13:14.from around the UK. Ryanair has cut its profit forecast

:13:15. > :13:18.for the year by 5%. They're blaming

:13:19. > :13:35.the fall in the pound. The airline is saying this is

:13:36. > :13:41.largely due to the drop in the value of sterling since the EU referendum.

:13:42. > :13:45.You might ask, why is an airline based in Ireland so worried about

:13:46. > :13:49.the value of the pound? Quite simple, a lot of the customers are

:13:50. > :13:53.UK based. About a third of the revenues are in sterling. When

:13:54. > :13:59.sterling declines the revenue go down. Look here. This is the last

:14:00. > :14:02.month's share price. You can see the concerns over the value of sterling.

:14:03. > :14:09.They've been weighing on the share price. Don't forget, Ryanair

:14:10. > :14:12.operates in a very competitive market. When you're trying to

:14:13. > :14:17.attract those low-priced customers, Tom petition with the likes of

:14:18. > :14:20.easyJet and problems in the airline market, the holiday market in

:14:21. > :14:24.particular, with the attacks in Turkey and Tunisia, it mounts up, so

:14:25. > :14:30.Ryanair says at the moment the revised guidance applies but if the

:14:31. > :14:33.pound falls farther we could see profits falling farther. That said,

:14:34. > :14:45.they will still be higher than last year. The planes are reasonably

:14:46. > :14:50.full. Let's talk about ASOS, they have had strong results. Revenues

:14:51. > :15:00.are up 26%, they've been doing a lot more sales and profits are up 37%.

:15:01. > :15:07.The reason I mention them is they've taken a 21% hit to settle copyright

:15:08. > :15:13.issue. That aside, they've been doing reasonably well. One of the

:15:14. > :15:17.eerie as -- areas they been doing well is mobile. That is proving

:15:18. > :15:35.productive at the moment. News from Visa. The boss is leaving

:15:36. > :15:39.the company. His family are on one side of America and his job is on

:15:40. > :15:46.the other side and it is too difficult for his work-life balance.

:15:47. > :15:47.He will be replaced by Alfred Kelly. He's a former president of American

:15:48. > :15:52.Express. Our top story, Paris Je T'aime,

:15:53. > :15:56.the French capital attempts to romance business away from London

:15:57. > :16:02.as Brexit negotiations loom. A quick look at how

:16:03. > :16:13.markets are faring. They are all green in Europe. Look

:16:14. > :16:16.at France, up well over a 1%. I wonder if traders are watching our

:16:17. > :16:19.programme and they're buying France today!

:16:20. > :16:21.That's the markets as they stand in Europe.

:16:22. > :16:24.Now, how do you improve financial literacy among young people and help

:16:25. > :16:27.them become the entrepreneurs of the future?

:16:28. > :16:30.Well, one organisation that's been successful in the field is MyBnk.

:16:31. > :16:32.Now, after nine years in business it has reached 150,000

:16:33. > :16:39.It has a presence in seven countries from France to Uganda.

:16:40. > :16:41.It helps young people with mentoring and financial education

:16:42. > :16:52.MyBnk's founder Lily Lapenna is with us in the studio.

:16:53. > :16:59.She is with us in the studio. Thank you Lily for taking the time join us

:17:00. > :17:04.this morning. Explain to us a bit more about what MyBnk is? Is it a

:17:05. > :17:09.business? Is it a charity or social enterprise? It is a combination of a

:17:10. > :17:12.charity and social enterprise. We earn a lot of revenue through grants

:17:13. > :17:15.and foundation and corporate partnerships, but we are starting to

:17:16. > :17:19.develop a consulting arm out of MyBnk that helps us to leverage

:17:20. > :17:24.everything we've created and sell it on and we also started to charge

:17:25. > :17:29.schools for the services that we provide. What inspired you to do

:17:30. > :17:33.this? I was working in Bangladesh on micro-finance and I came back to the

:17:34. > :17:38.UK and realised that a lot of my friends were leaving university in

:17:39. > :17:42.huge amounts of debt and didn't know what APR was. I left university with

:17:43. > :17:46.a lot of debt and I know for young people today in the UK, because in

:17:47. > :17:49.my day, I could get a Government grant, but that facility is not

:17:50. > :17:51.available. So there are a lot of young people putting off thinking

:17:52. > :17:56.about further education because of the cost? Absolutely. There is a

:17:57. > :18:04.real fear attached to debt. I think one in about a third of young people

:18:05. > :18:10.fear debt over a fear of spiders. A lot of first generation students to

:18:11. > :18:13.go into university, the first generation within their families are

:18:14. > :18:18.struggling with this issue how much will it cost? And how much will I be

:18:19. > :18:21.able to pay this back? We support them through a series of programmes.

:18:22. > :18:25.It really brings to light everything they need to know around their money

:18:26. > :18:29.and their relationship with money throughout and preuniversity. We

:18:30. > :18:32.heard yesterday from the deputy governor of the Bank of England

:18:33. > :18:36.saying there does need to be more financial education in schools. What

:18:37. > :18:39.age are you aiming at? Are you starting young or waiting until

:18:40. > :18:43.people are making the university decision? When are you trying to

:18:44. > :18:49.reach them? We start at the age of 11 and we go up to 25. We work in

:18:50. > :18:52.schools, we work in prisons and we work in youth organisations and what

:18:53. > :18:56.we've really learned is the most important time to intervene is just

:18:57. > :19:00.in time. So just as they are about to make a transition in their life,

:19:01. > :19:04.from primary to secondary, from secondary to an apprenticeship or to

:19:05. > :19:08.university. Or when they get into their first job. We see that there

:19:09. > :19:11.are a lot of issues around starting to go into your first job. All the

:19:12. > :19:14.questions that come up around pensions. Don't you think this

:19:15. > :19:20.include be a part of the curriculum in schools? It is. It is already? To

:19:21. > :19:27.what extent? Look, there are issues around it. All the financial

:19:28. > :19:33.education providers got together and created an all-party group and we

:19:34. > :19:39.got finance into the curriculum. There is not enough Government

:19:40. > :19:43.support going into schools to pay for this. Teachers and schools know

:19:44. > :19:47.it is fundamentally important and it means that organisations like ours

:19:48. > :19:49.are able to go in and access some of those budgets, but we really feel

:19:50. > :19:54.there should be more Government support. Clearly, you're really

:19:55. > :19:57.passionate about this, there is no doubt about it. It is something you

:19:58. > :20:02.kind of started as it were, but when you became a mum, it took more of a

:20:03. > :20:07.back seat or not? How would you describe the change in your role? It

:20:08. > :20:12.became more blended. There were certainly other priorities as well

:20:13. > :20:21.in my life and so I did a, I went down a flexible approach. Guy Rigden

:20:22. > :20:24.joined me. It is something I truly believe works. You get the best of

:20:25. > :20:28.both minds and you know, we were able to have quality time with our

:20:29. > :20:32.families. You've worked across many countries. What has been your

:20:33. > :20:36.biggest success story or a story that's really stuck with you? There

:20:37. > :20:40.are so many wonderful stories. Today, I was reading about some, a

:20:41. > :20:44.young student in Senegal where we have been working who set-up, who

:20:45. > :20:47.took out a small loan and they set-up a head massage company and

:20:48. > :20:50.they were doing this around local markets. It was going so well, they

:20:51. > :20:55.were able to use the profit to build a library for their school. That was

:20:56. > :20:59.a fantastic story. In the UK, we see young people like for example Dan

:21:00. > :21:03.who I refer to often because I got to meet him recently. He had applied

:21:04. > :21:06.for 80 jobs and got no responsement he started to feel there was

:21:07. > :21:10.something really wrong with him. He joined one of our enterprise

:21:11. > :21:14.programmes. Took out a small loan and set-up a project. Was then able

:21:15. > :21:17.to go on site and visit different companies and realise that people

:21:18. > :21:22.working in businesses were not that different to him. He then applied

:21:23. > :21:25.for 12 jobs and got called in, I think, for four interviews and

:21:26. > :21:29.landed his first job, so we were able to turn around his mindset to

:21:30. > :21:35.feeling actually I have a place in the job market. Lily, it is really

:21:36. > :21:37.good to meet you and all the best with MyBnk. A nice positive money

:21:38. > :21:41.story there. All this week, we are hearing

:21:42. > :21:43.the personal stories of workers and entrepreneurs who are driving

:21:44. > :21:46.what's known as the gig economy. Today we're meeting Tim Norton -

:21:47. > :21:48.who despite being was saddled with more than $500,000 debt

:21:49. > :21:51.from two failed companies, now runs a thriving video production

:21:52. > :22:13.platform called 90 seconds. 90 Seconds is a world's Cloud video

:22:14. > :22:18.production platform. It has got a network

:22:19. > :22:20.of video creators all over They are people that can shoot

:22:21. > :22:24.and edit and do graphics and on the other side of the market

:22:25. > :22:27.you've got brands who are making Normally they'd go to

:22:28. > :22:39.production companies, 90 Seconds let's them

:22:40. > :22:41.all do that on the Cloud. It is not as simple

:22:42. > :22:44.as coming and building a technology platform

:22:45. > :22:52.and getting a demand and saying

:22:53. > :22:54.the world is a better place. It is disrupting people's income

:22:55. > :22:56.flow and when you do Our job now how do we make

:22:57. > :23:00.this for everybody? It is something we have to keep

:23:01. > :23:14.asking and it is something James has returned. Tell you some of

:23:15. > :23:19.the viewers views on the Paris-London-Frankfurt debate. Rich,

:23:20. > :23:25.Paris. London is too stressful. I found Frankfurt a little dull. Pat

:23:26. > :23:32.is saying how about Dublin? Are you flying the flag for Dublin? Yes.

:23:33. > :23:37.Nick says, "Frankfurt is the dullest place I have ever been in my life."

:23:38. > :23:42.Another viewer says, "London is rather dull. James, you've said your

:23:43. > :23:47.view. I like Sue's response. She says Paris and London, a mix. Lunch

:23:48. > :23:51.breaks, the week in Paris, home to London with the hubby and the kids

:23:52. > :23:55.at the weekend. Sue, that sounds like a plan. This is interesting,

:23:56. > :24:01.investors seem to think Hillary Clinton really will take on big

:24:02. > :24:07.farmer, ie the big pharmaceutical companies and the stocks are

:24:08. > :24:11.sensitive? It is probably one of the sectors most at risk. Hillary

:24:12. > :24:14.Clinton has been big on her confounding of what the

:24:15. > :24:18.pharmaceutical companies do in something called price gaunlging.

:24:19. > :24:24.When they really ramp the price of a drug up when it is at its most

:24:25. > :24:28.needed to be perfectly honest. Of course the drug companies are one

:24:29. > :24:31.way saying on one side look, this is not, this doesn't help production

:24:32. > :24:36.and investment going forward and making these drugs better, but the

:24:37. > :24:39.big fear is, of course, one area is that the pharmaceutical companies

:24:40. > :24:43.have ploughed millions of dollars into the Hillary Clinton campaign to

:24:44. > :24:46.get her the presidency. So the question has always been, if she

:24:47. > :24:50.does get in, which is looking more likely at the moment. If she does

:24:51. > :24:56.get in, does she actually go after them? Before we move on, it is the

:24:57. > :25:01.next TV debate, Wednesday night, the third and final. Are you staying up

:25:02. > :25:12.for it? I'll be here! I have no choice! Rachel. We heard Apple doing

:25:13. > :25:17.some major lay-office, 1,000 jobs from Project Titan. They have done a

:25:18. > :25:23.handbrake and gone for artificial intelligence in a very public

:25:24. > :25:33.announcement that they have launched a new Director of I, they are trying

:25:34. > :25:39.to get into the AI drive. The only public AI is Siri and has been

:25:40. > :25:46.panned for not being intelligent enough. They're usually secret by

:25:47. > :25:49.their AI and their intelligent robot situation and how much they invest

:25:50. > :25:53.in it and who they have working with it, but this seems to have gone the

:25:54. > :25:59.other way and let everyone know exactly who they're hiring and what

:26:00. > :26:04.they're doing. Interesting. James, it has been good to see you. Steve

:26:05. > :26:07.says there is a reason why there is a big moat around the UK! See you

:26:08. > :26:15.soon. Hello there. Step outside today and

:26:16. > :26:17.you may well notice a slightly different feel to the weather.

:26:18. > :26:18.Temperatures have