18/10/2016 BBC Business Live


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This is Business Live from BBC News with Rachel Horne and Sally Bundock.


Paris attempts to romance business away from London


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


Many in the City are sceptical - and think a move to the French


Also in the programme - Shares of Netflix surged 20%


in after hours trading as market watchers binge on the streaming


giant's skyrocketing membership figures.


European markets are open and trading -


and there they are - London, Paris F frankfurt -


and there they are - London, Paris, Frankfurt -


UK waiting for inflation figures due in an hour -


and lots of company news already out and moving the markets.


And empowering young people to get an education and start businesses.


We speak to Lily Lapenna - who's helping to give


them the financial means to achieve their goals.


We want to know which your ideal city is for work and play.


It is no secret that Paris is trying to woo business away from London


The campaign has started - here is the poster:


Reads the ad that La Defense business district in Paris hopes


There are warnings the city of London could lose its position


as the only financial capital to rival New York, if foreign banks


London currently accounts for 41 percent of global


foreign exchange turnover, that is more than double New York -


so says the Bank for International Settlements.


And about 85 percent of Europe's hedge fund assets


are managed in London, which also happens to be the leading


market for international insurance and re-insurance.


With me in the studio is Marie Celie Guillaume,


Director of Defacto - and from the city of


London, Jasper Lawler - from CMC markets.


Good morning. Fork, play on words, is that about the weather or the


confusion of Brexit? An element of both. It is using cliches and is a


humanistic approach, because Brexit is a very serious matter. We thought


it was good to have not too harsh of a campaign and to play on the


cliches we have about each other. For centuries French and English


have been competing, a long time ago they were fighting against each


other and more recently we fought together. It is very important for


us to see that. We are close, we love each other, even though...


There is a strong bond between the French and the British. Before we


bring in Jasper, why do you think Paris has got the edge? Since the


referendum result many cities have been talking about why bankers need


to go to the city. Why Paris? Paris is the centre of Europe, it is in


the middle of Europe, we have a thriving business ecosystem, half of


the companies are international, it's a very good place to do


business and a very nice place to live in. That's a strong argument


because when moving many employees, they will want to think about where


they will want to live. Let's move to Jasper. We've heard the arguing


for Paris but what is the argument for London? I would question whether


London is any less foggy than Paris? I'm not sure if that's true. This


argument about jobs moving from London to Paris is problematic for a


couple of reasons. I think Paris, whilst being a great city, equally,


Frankfurt, Dublin, London just has it all. And so, while Paris might be


good in certain areas, we've got to remember London is bringing over


people, jobs, not just jobs, people behind those jobs, the culture, the


museums, the schools, people send their kids do, these things need to


be considered if there is a mass exodus of people taking place.


Secondly, the whole premise of this is the passport debate, London's


access to Europe's tanking centres. That's a big?. It works both ways,


European firms use it to access London, London uses it to access


European firms. The result of the negotiations is going to be an


agreement that works for both until there going to be the need to move


the jobs. Jasper makes some good points there. France is known to be


notoriously difficult when it comes to Labour laws. Although bankers may


move easily, financial services may need to hire in France. Hiring and


firing is very difficult there. It puts people off. It is not difficult


but it is true that those laws need to be made more flexible. This has


already started this year, there was a reform that made it more flexible


and there are discussions going on and there is a very strong consensus


between the Socialist party that is currently running the government and


the Conservatives, we will go to more flexibility concerning higher


wages. Think is a much freer time. Thank you for joining us. We


appreciate your time this morning. Netflix has shaken off growth


worries with new subscriber numbers that beat estimates


and sent its shares soaring. The video streaming company added


3.2 million international customers in the last three months,


far more than the 2 million In the US, numbers rose 21%


to 370,000 as hit shows such as Stranger Things and Narcos won


over more subscribers. Samsung says it will compensate


companies that made parts for the now discontinued


Galaxy Note 7. The South Korean tech giant added


that it would also look to offer the firms other work


to cushion the blow. The Note 7 was recalled last month


after battery fires, but when replacement phones


experienced the same problem, According to the Reuters news


agency, the troubled German finance giant Deutsche Bank has agreed


to pay 38 million dollars to settle a silver price-fixing case


in the United States. The case is understood to have


involved allegations that the bank illegally conspired with other


institutions to fix silver prices Another story making the headlines


today in Asia is a Chinese company that wants to attract Hollywood.


Karishma Vaswani is in Singapore tell us more.


Nice to see you. Yet another attempt by China's richest man to forge


closer ties with US film-makers. After buying over cinema chains,


Dalian Wanda is trying to lure Hollywood to China's Soros. It is


owned by China's richest man and they will give huge discounts to


film at their new studio in Qingdao province. It is thought to be worth


$5 billion. It opened its first Studios earlier this month and will


be completed in 2018. They've set up a fund to give rebates to movie


makers of 14%. The firm is aiming to attract Hollywood directors to


China. They have dismissed concerns that this is a takeover of


Hollywood, instead saying this is an opportunity for American film-makers


and should not be seen as competition. Let's have a look at


the markets. Stocks in Asia climbed thanks


to a rebound in the oil price. Analysts are now thinking the market


isn't as oversupplied Investors also eagerly waiting


for China's GDP figures In Europe, shares were down


yesterday but today. Keep an eye on the FTSE 100.


Inflation figures out in less than an hour.


And Samira Hussain has the details about what's ahead on Wall Street


Yahoo will be reporting figures on Wednesday. Investors will be asking


about the huge that breach. Remember Yahoo is being backed by Verizon so


investors will be looking for updates on that. Goldman Sachs will


be reporting. The Wall Street bank has been cutting jobs and


streamlining its business to make up for the low resonant -- low revenue


environment banks are experiencing. And as inflation edging towards the


Federal reserve's goal of 2%? We will find it later today.


Joining us is James Hughes, Chief Market Analyst


Were you listening in earlier? London, I would say. I would like to


stay. It would take a lot of business movement to make London not


the financial capital. We would be talking 50% of the businesses


moving. We don't know that Brexit is that bad.


Let's move on to net flicks, what is going on with the company? I think


this was a big surprise because we expected, the majority of the


saturation is in the US and they've spent a few derides of money pushing


into every country with high-speed broadband. The have said they will


keep moving. Burberry and Ryanair, without warning, but Burberry survey


will be -- said they will be boosted by weaker sterling. Absolutely.


Burberry are a luxury goods, and only 10% of their sales are UK


consumers. A lot of that is international business. People


coming over to the UK and spending money in it. You can see why that is


positive. People flying away on holiday from within the UK it is not


such a good story. Thank you very much. We will be discussing other


stories in about five minutes. We'll speak to the founder of


an organisation called MyBank that gives micro loans to young people


to help them achieve their goals. Now a look at some of the stories


from around the UK. Ryanair has cut its profit forecast


for the year by 5%. They're blaming


the fall in the pound. The airline is saying this is


largely due to the drop in the value of sterling since the EU referendum.


You might ask, why is an airline based in Ireland so worried about


the value of the pound? Quite simple, a lot of the customers are


UK based. About a third of the revenues are in sterling. When


sterling declines the revenue go down. Look here. This is the last


month's share price. You can see the concerns over the value of sterling.


They've been weighing on the share price. Don't forget, Ryanair


operates in a very competitive market. When you're trying to


attract those low-priced customers, Tom petition with the likes of


easyJet and problems in the airline market, the holiday market in


particular, with the attacks in Turkey and Tunisia, it mounts up, so


Ryanair says at the moment the revised guidance applies but if the


pound falls farther we could see profits falling farther. That said,


they will still be higher than last year. The planes are reasonably


full. Let's talk about ASOS, they have had strong results. Revenues


are up 26%, they've been doing a lot more sales and profits are up 37%.


The reason I mention them is they've taken a 21% hit to settle copyright


issue. That aside, they've been doing reasonably well. One of the


eerie as -- areas they been doing well is mobile. That is proving


productive at the moment. News from Visa. The boss is leaving


the company. His family are on one side of America and his job is on


the other side and it is too difficult for his work-life balance.


He will be replaced by Alfred Kelly. He's a former president of American


Express. Our top story, Paris Je T'aime,


the French capital attempts to romance business away from London


as Brexit negotiations loom. A quick look at how


markets are faring. They are all green in Europe. Look


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


programme and they're buying France today!


That's the markets as they stand in Europe.


Now, how do you improve financial literacy among young people and help


them become the entrepreneurs of the future?


Well, one organisation that's been successful in the field is MyBnk.


Now, after nine years in business it has reached 150,000


It has a presence in seven countries from France to Uganda.


It helps young people with mentoring and financial education


MyBnk's founder Lily Lapenna is with us in the studio.


She is with us in the studio. Thank you Lily for taking the time join us


this morning. Explain to us a bit more about what MyBnk is? Is it a


business? Is it a charity or social enterprise? It is a combination of a


charity and social enterprise. We earn a lot of revenue through grants


and foundation and corporate partnerships, but we are starting to


develop a consulting arm out of MyBnk that helps us to leverage


everything we've created and sell it on and we also started to charge


schools for the services that we provide. What inspired you to do


this? I was working in Bangladesh on micro-finance and I came back to the


UK and realised that a lot of my friends were leaving university in


huge amounts of debt and didn't know what APR was. I left university with


a lot of debt and I know for young people today in the UK, because in


my day, I could get a Government grant, but that facility is not


available. So there are a lot of young people putting off thinking


about further education because of the cost? Absolutely. There is a


real fear attached to debt. I think one in about a third of young people


fear debt over a fear of spiders. A lot of first generation students to


go into university, the first generation within their families are


struggling with this issue how much will it cost? And how much will I be


able to pay this back? We support them through a series of programmes.


It really brings to light everything they need to know around their money


and their relationship with money throughout and preuniversity. We


heard yesterday from the deputy governor of the Bank of England


saying there does need to be more financial education in schools. What


age are you aiming at? Are you starting young or waiting until


people are making the university decision? When are you trying to


reach them? We start at the age of 11 and we go up to 25. We work in


schools, we work in prisons and we work in youth organisations and what


we've really learned is the most important time to intervene is just


in time. So just as they are about to make a transition in their life,


from primary to secondary, from secondary to an apprenticeship or to


university. Or when they get into their first job. We see that there


are a lot of issues around starting to go into your first job. All the


questions that come up around pensions. Don't you think this


include be a part of the curriculum in schools? It is. It is already? To


what extent? Look, there are issues around it. All the financial


education providers got together and created an all-party group and we


got finance into the curriculum. There is not enough Government


support going into schools to pay for this. Teachers and schools know


it is fundamentally important and it means that organisations like ours


are able to go in and access some of those budgets, but we really feel


there should be more Government support. Clearly, you're really


passionate about this, there is no doubt about it. It is something you


kind of started as it were, but when you became a mum, it took more of a


back seat or not? How would you describe the change in your role? It


became more blended. There were certainly other priorities as well


in my life and so I did a, I went down a flexible approach. Guy Rigden


joined me. It is something I truly believe works. You get the best of


both minds and you know, we were able to have quality time with our


families. You've worked across many countries. What has been your


biggest success story or a story that's really stuck with you? There


are so many wonderful stories. Today, I was reading about some, a


young student in Senegal where we have been working who set-up, who


took out a small loan and they set-up a head massage company and


they were doing this around local markets. It was going so well, they


were able to use the profit to build a library for their school. That was


a fantastic story. In the UK, we see young people like for example Dan


who I refer to often because I got to meet him recently. He had applied


for 80 jobs and got no responsement he started to feel there was


something really wrong with him. He joined one of our enterprise


programmes. Took out a small loan and set-up a project. Was then able


to go on site and visit different companies and realise that people


working in businesses were not that different to him. He then applied


for 12 jobs and got called in, I think, for four interviews and


landed his first job, so we were able to turn around his mindset to


feeling actually I have a place in the job market. Lily, it is really


good to meet you and all the best with MyBnk. A nice positive money


story there. All this week, we are hearing


the personal stories of workers and entrepreneurs who are driving


what's known as the gig economy. Today we're meeting Tim Norton -


who despite being was saddled with more than $500,000 debt


from two failed companies, now runs a thriving video production


platform called 90 seconds. 90 Seconds is a world's Cloud video


production platform. It has got a network


of video creators all over They are people that can shoot


and edit and do graphics and on the other side of the market


you've got brands who are making Normally they'd go to


production companies, 90 Seconds let's them


all do that on the Cloud. It is not as simple


as coming and building a technology platform


and getting a demand and saying


the world is a better place. It is disrupting people's income


flow and when you do Our job now how do we make


this for everybody? It is something we have to keep


asking and it is something James has returned. Tell you some of


the viewers views on the Paris-London-Frankfurt debate. Rich,


Paris. London is too stressful. I found Frankfurt a little dull. Pat


is saying how about Dublin? Are you flying the flag for Dublin? Yes.


Nick says, "Frankfurt is the dullest place I have ever been in my life."


Another viewer says, "London is rather dull. James, you've said your


view. I like Sue's response. She says Paris and London, a mix. Lunch


breaks, the week in Paris, home to London with the hubby and the kids


at the weekend. Sue, that sounds like a plan. This is interesting,


investors seem to think Hillary Clinton really will take on big


farmer, ie the big pharmaceutical companies and the stocks are


sensitive? It is probably one of the sectors most at risk. Hillary


Clinton has been big on her confounding of what the


pharmaceutical companies do in something called price gaunlging.


When they really ramp the price of a drug up when it is at its most


needed to be perfectly honest. Of course the drug companies are one


way saying on one side look, this is not, this doesn't help production


and investment going forward and making these drugs better, but the


big fear is, of course, one area is that the pharmaceutical companies


have ploughed millions of dollars into the Hillary Clinton campaign to


get her the presidency. So the question has always been, if she


does get in, which is looking more likely at the moment. If she does


get in, does she actually go after them? Before we move on, it is the


next TV debate, Wednesday night, the third and final. Are you staying up


for it? I'll be here! I have no choice! Rachel. We heard Apple doing


some major lay-office, 1,000 jobs from Project Titan. They have done a


handbrake and gone for artificial intelligence in a very public


announcement that they have launched a new Director of I, they are trying


to get into the AI drive. The only public AI is Siri and has been


panned for not being intelligent enough. They're usually secret by


their AI and their intelligent robot situation and how much they invest


in it and who they have working with it, but this seems to have gone the


other way and let everyone know exactly who they're hiring and what


they're doing. Interesting. James, it has been good to see you. Steve


says there is a reason why there is a big moat around the UK! See you


soon. Hello there. Step outside today and


you may well notice a slightly different feel to the weather.


Temperatures have


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