:00:07. > :00:09.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:10. > :00:20.Regulators examine AT's $85 billion takeover of Time Warner.
:00:21. > :00:24.Live from London, that's our top story
:00:25. > :00:37.The deal would bring together millions of TV
:00:38. > :00:43.Lawmakers and both presidential candidates say that raises serious
:00:44. > :00:51.Also in the programme: More choppy waters for South Korean
:00:52. > :00:55.Its shares have plunged after it said it would close
:00:56. > :01:04.Shares in Europe are looking like this after Japan and China opened
:01:05. > :01:08.the week slightly higher. We will examine what is moving the numbers.
:01:09. > :01:10.And why the weak pound means a five-star stay
:01:11. > :01:14.The boss of London's Ritz will be here a little later
:01:15. > :01:16.with the inside track on the century old institution.
:01:17. > :01:21.And as a mum slams Fisher-Price for a toy that reduces mothers
:01:22. > :01:24.to yoga and smoothies, let us know should toys set
:01:25. > :01:43.We're starting with a deal that could prove to be the biggest
:01:44. > :01:49.This weekend telecoms giant AT announced plans to buy media empire
:01:50. > :01:53.Time Warner but it's already causing a political storm in the US.
:01:54. > :01:57.Both presidential candidates have made their views known.
:01:58. > :01:59.Hillary Clinton says it raises a number of concerns
:02:00. > :02:02.and Donald Trump has already said he would block the merger
:02:03. > :02:11.But if, and it's still a big if, the merger is approved,
:02:12. > :02:13.the US telecoms giant will pay $85.4 billion for the
:02:14. > :02:19.That's close to ?70 billion and critics say it concentrates too
:02:20. > :02:29.For that much money you could buy Manchester United Football Club 43
:02:30. > :02:32.times over, Yahoo 18 times over and even Twitter six
:02:33. > :02:42.AT has 141.8 million mobile customers and 25 million TV
:02:43. > :02:48.subscribers making it the largest pay TV provider in the US.
:02:49. > :02:51.The deal will allow AT to combine its formidable
:02:52. > :02:56.distribution network with Time Warner content including
:02:57. > :02:58.everything from fan favourite Game Of Thrones to NBA basketball
:02:59. > :03:11.This is Donald Trump on his plans to block the merger if he wins. As an
:03:12. > :03:16.example of power structure and infighting, AT is buying time
:03:17. > :03:20.Warner and thus CNN, the deal we will not approve in my
:03:21. > :03:27.administration, because it is too much concentration of power in the
:03:28. > :03:30.hands of too few. We are usually pretty clear where he stands on
:03:31. > :03:32.these things! That was Donald Trump of course.
:03:33. > :03:35.Joining me now is Alice Enders, director of research at the media
:03:36. > :03:43.Thank you for coming in. Just give us a sense of why so many people are
:03:44. > :03:49.concerned about these two huge companies coming together. Many like
:03:50. > :03:55.Donald Trump are arguing it is too much power in too few hands. AT is
:03:56. > :04:00.a telecommunications company. It has a wireless business, a fixed line
:04:01. > :04:04.business, and Time Warner is a studio. It has many beautiful
:04:05. > :04:10.channels, and incredible presence, CNN news as well. I think Donald
:04:11. > :04:15.Trump doesn't like CNN news and its coverage of him. More generally,
:04:16. > :04:18.outside of the political arena, of course people are always going to be
:04:19. > :04:27.concerned when they see an $85 billion deal. However there is a
:04:28. > :04:30.precedent here which is the NBC Universal deal which got through a
:04:31. > :04:35.few years ago subject to a number of conditions. I think on the
:04:36. > :04:43.distribution side, the distributors of HBO and Game of Thrones, that
:04:44. > :04:46.popular show, it would be concerned that the combination prevents them
:04:47. > :04:50.from showing this content and that is where the justice department will
:04:51. > :04:55.be very careful. That is what we have got to be clear about. It is a
:04:56. > :04:59.decision on the part of the US justice department, not the decision
:05:00. > :05:04.of politicians. Call me old-fashioned, I like to think the
:05:05. > :05:07.regulator is there to do his job. I don't think politicians should
:05:08. > :05:13.necessarily intervene in that sort of deal when there is a regulator
:05:14. > :05:19.there to look at it very closely. What with the two bring together? At
:05:20. > :05:24.the moment we are looking at them as big media organisations, media in
:05:25. > :05:29.different respects. What would the combine company bring? What can it
:05:30. > :05:36.deliver? For AT it is about getting a privileged channel into a
:05:37. > :05:39.very big media company. AT isn't really a media company. It is a
:05:40. > :05:44.telecoms company. What do people connected internet to do? To enjoy
:05:45. > :05:49.content. It is all about premium content nowadays and what AT wants
:05:50. > :05:56.to do is to simplify its life by having one of the major studios
:05:57. > :06:00.right there, so it can tap into its content, do innovative things. AT
:06:01. > :06:04.is very focused on developing mobile broadband, the technology of the
:06:05. > :06:08.future. If it were to go ahead, let's pretend that whole deal is
:06:09. > :06:17.signed and sealed and regulators are K with it, will consumers in the US
:06:18. > :06:22.think that is the place to go? Will Verizon still be a competitor? They
:06:23. > :06:28.have taken a different track. Of course they are number one in the
:06:29. > :06:32.US. They have invested in content, they have bought AOL, but it is more
:06:33. > :06:37.concerned about being a pipe, a distribution network. Our consumers
:06:38. > :06:40.of course don't want to just watch the content that is produced by
:06:41. > :06:46.Warner. They want to watch the content produced by Disney,
:06:47. > :06:49.Paramount, whatever. In general what we see is that every single
:06:50. > :06:53.distribution network has got to get all of the content to make the
:06:54. > :06:56.customer happy. Thank you so much were coming in and share your
:06:57. > :07:01.insight into this story. One that will go on and on, I imagine. Stay
:07:02. > :07:05.tuned and we will bring you all the twists and turns of that very
:07:06. > :07:12.interesting debate. Here the other business news this morning.
:07:13. > :07:14.The Belgian region of Wallonia has rejected what it calls
:07:15. > :07:17.an ultimatum from Brussels to back the EU trade deal with Canada.
:07:18. > :07:20.The EU says a planned summit with Canada on Thursday can only go
:07:21. > :07:23.ahead if it guarantees by today that it won't stop Belgium
:07:24. > :07:26.Wallonia says the deal, known as CETA, could allow southern
:07:27. > :07:28.Belgium to be flooded with products from North American firms.
:07:29. > :07:32.Japan continues to feel the effects of the global slowdown.
:07:33. > :07:35.The latest trade figures show exports fell nearly 7 percent last
:07:36. > :07:40.It's the 12th straight month of decline in overseas demand
:07:41. > :07:46.The country's imports also fell, down 16 percent.
:07:47. > :07:56.And one non-business story we're keeping an eye on today:
:07:57. > :07:58.The French authorities are clearing the notorious migrant camp
:07:59. > :08:03.Several thousand people have been living there, many of them trying
:08:04. > :08:05.to smuggle themselves across the Channel into the UK.
:08:06. > :08:07.France has promised to relocate all of them
:08:08. > :08:10.and the site is scheduled to be demolished later in the week.
:08:11. > :08:12.Overnight there were clashes between the police and groups of migrants
:08:13. > :08:14.with some insisting they'd rather sleep on the streets
:08:15. > :08:19.There is a lot of coverage on our website and other for that matter
:08:20. > :08:22.about a story that emerged this weekend with bankers with their hand
:08:23. > :08:28.quivering over the relocation button. This is bankers based in
:08:29. > :08:31.London. Financial services are used contributed to UK economic growth
:08:32. > :08:35.but in the wake of the vote to leave the European Union, what would
:08:36. > :08:38.happen? Would the staff go elsewhere and would the banks want to
:08:39. > :08:47.relocate? On the Radio Four programme this morning there was a
:08:48. > :08:53.statement saying the effect of Brexit would be in the medium-term.
:08:54. > :09:08.More information on that story online.
:09:09. > :09:19.Now let's get more information about changing shipping. -- Hanjin
:09:20. > :09:21.Shipping. Their shares have slumped 14% after they announced they would
:09:22. > :09:25.close all of their European operations including the regional
:09:26. > :09:31.headquarters in Germany. The process will start this week once the court
:09:32. > :09:35.signs off on the bankruptcy. We have been tracking the story for quite a
:09:36. > :09:38.while. It is South Korea's biggest shipping company but it has been
:09:39. > :09:41.broken up and will potentially be liquidated after suffering from
:09:42. > :09:46.years of losses. In August we learned that creditors were refusing
:09:47. > :09:49.to give it any more financial support, which caused massive
:09:50. > :09:55.disruption to global supply chains. Many of its ships were stranded at
:09:56. > :10:00.sea. So Hanjin is putting up some of its biggest assets for sale.
:10:01. > :10:08.Analysts say exiting Europe will benefit its rivals. Good stuff.
:10:09. > :10:14.Thank you. And a quick look at what happened on the Asian markets. The
:10:15. > :10:23.new week I was good after a pretty volatile week. The Japanese earnings
:10:24. > :10:28.season kicking off, meaning volumes are pretty light until then. Let's
:10:29. > :10:33.look at Europe. The cut in the UK interest rates will feature in the
:10:34. > :10:37.earnings for UK banks. Lloyds, RBS and Barclays report this week so we
:10:38. > :10:41.will get an idea of what that means for their profitability. We have
:10:42. > :10:45.seen big moves to slash current accounts for users as a result of a
:10:46. > :10:53.fall in interest rates. In the US, we will get a big week for US
:10:54. > :10:57.earnings. Google, Apple and Amazon later this week. Lots to look out
:10:58. > :11:02.for as we explain from New York. It will be a busy week in business news
:11:03. > :11:08.in the US. Text diet Apple will be reporting on Tuesday and everybody
:11:09. > :11:11.will be playing close attention to iPhone sales for the last quarter.
:11:12. > :11:16.Last month they launched the iPhone seven which seems to be winning with
:11:17. > :11:20.consumers. On Wednesday electric car maker Tesla will be reporting on
:11:21. > :11:23.earnings. Last week the company announced that all of its cars come
:11:24. > :11:28.with full self drive hardware but the question by investors will be
:11:29. > :11:32.the same. When will they start making money? Online retailer Amazon
:11:33. > :11:37.will be reporting on Thursday and investors will want to hear that the
:11:38. > :11:42.company's expectations for the holiday season, which believe it or
:11:43. > :11:46.not is right around the corner. And we will get the strength of the US
:11:47. > :11:54.economy when the Congress department releases growth numbers for the last
:11:55. > :12:02.quarter. Some -- and we are on it. Now we have got Richard Hunter. Head
:12:03. > :12:08.of Wilson King investment management. Things get into full
:12:09. > :12:13.swing on both sides of the pond, certainly in UK and Europe the
:12:14. > :12:16.biggest story will be the banks. We are expecting updates from roads,
:12:17. > :12:23.Barclays and RBS and also Deutsche Bank in Germany. In light of that
:12:24. > :12:28.current travails. They have had an awful year. They have indeed. They
:12:29. > :12:31.have still got the $14 billion fine hanging over them which is yet to be
:12:32. > :12:35.renegotiated. There was some hope that would be done before the
:12:36. > :12:40.election, the US election, but time is running out. The banking story is
:12:41. > :12:43.really interesting. On the one hand they are struggling to make money in
:12:44. > :12:49.this record environment of low interest rates, certainly with the
:12:50. > :12:53.cut in UK banks earlier in the year. But then Deutsche Bank is facing
:12:54. > :12:57.fines, regulation, tougher criticism, so it is a difficult
:12:58. > :13:00.environment. There will not be much sympathy for bankers but it is a
:13:01. > :13:06.tough environment. Yes, and things keep coming out of the woodwork.
:13:07. > :13:09.Money-laundering, foreign exchange, PPI, the additional cost of
:13:10. > :13:15.regulation and compliance anyway, and then as you say there are these
:13:16. > :13:21.low interest rates which all things considered make it very difficult
:13:22. > :13:25.for the banks. The share prices have tended to reflect that since the
:13:26. > :13:29.referendum vote in June. Even the likes of Lloyds, which has had a
:13:30. > :13:32.pretty strong turnaround at the moment, could be affected by any
:13:33. > :13:37.weakness in the UK economy as we go forward. Thank you. Richard will be
:13:38. > :13:43.back in five minutes to talk about all sorts of things including
:13:44. > :13:47.smoothies, yoga and toys. A combination you don't want to Miss!
:13:48. > :13:50.But also still to come: Luxury for less. Why the weak pound could mean
:13:51. > :13:55.a 5-star state could cost you less. The boss of London's Ritz will be
:13:56. > :13:58.here with the inside track You're with Business
:13:59. > :14:03.Live from BBC News. Microsoft has announced big price
:14:04. > :14:05.rises for its business Business software and cloud services
:14:06. > :14:24.priced in pounds will go Perhaps no surprise that Microsoft
:14:25. > :14:27.is one of the first to make it quite so clear. Yes, indeed. This is
:14:28. > :14:31.really about what has happened to the value of the sterling in the
:14:32. > :14:35.aftermath of the referendum, and the relevant exchange rate here is
:14:36. > :14:38.against the Euro. If we look at the graft, Stirling before the
:14:39. > :14:44.referendum was at 130 and quickly went down to 120 and has drifted
:14:45. > :14:49.down towards the current figure of 112, cumulative decline of about
:14:50. > :14:54.14%. The Microsoft statement is very striking. It does not mention the
:14:55. > :14:58.referendum, the result, Brexit, or the decline in sterling but that is
:14:59. > :15:02.clearly what it is about. They are talking about realigning pricing
:15:03. > :15:05.across the European Union and neighbouring countries. They made a
:15:06. > :15:10.similar move in response to movements in Norwegian and Swiss
:15:11. > :15:17.currencies earlier in the year. So we are getting an increase of 13% in
:15:18. > :15:22.enterprise software services, for new businesses that is, and 22%
:15:23. > :15:27.increase in enterprise cloud services. When we say enterprise, it
:15:28. > :15:31.is not just business. It is also other organisations including the
:15:32. > :15:35.British government, which will see a significant increase in its computer
:15:36. > :15:42.software bills, and I guess the BBC, because we do use a certain amount
:15:43. > :15:48.of products. This doesn't apply to consumer software. What you and I
:15:49. > :15:49.buy for our computers at home will not be affected by this latest
:15:50. > :15:59.Microsoft announcement. Andrew Walker, thank you.
:16:00. > :16:06.A story that's on the Business Live page. News that one of the UK's best
:16:07. > :16:16.aerospace firms, their shares are down 13% after issuing a second
:16:17. > :16:21.profit warning this year. You've got shares in Petra Diamonds which
:16:22. > :16:26.jumped. Releasing a trading update for the quarter which was
:16:27. > :16:30.impressive. Production up 30%. It said it has got two new caves
:16:31. > :16:35.starting up with a meaningful contribution to production. Diamonds
:16:36. > :16:39.are forever especially if you're Petra!
:16:40. > :16:44.Our top story, US lawmakers and both presidential candidates have
:16:45. > :16:49.questioned AT's deal to buy Time Warner.
:16:50. > :16:51.The US telecoms giant, already the country's third
:16:52. > :16:52.largest cable provider, is paying $85.4 billion
:16:53. > :17:03.for the company, which owns CNN and HBO.
:17:04. > :17:11.A quick look at how markets are faring.
:17:12. > :17:24.We have been keeping a close eye on the pound-dollar exchange rate. We
:17:25. > :17:29.have got three regional Federal Reserve chiefs talking this week.
:17:30. > :17:30.Any hint with what is happening US interest rates will be on their
:17:31. > :17:32.radar. For many hotels in London the lower
:17:33. > :17:35.pound has been a blessing - driving up occupancy rates over
:17:36. > :17:38.the summer - and The Ritz Established 110 years ago in 1906,
:17:39. > :17:42.it's at the very top end Owned by the Barclay family it has
:17:43. > :17:47.136 rooms and suites But being pampered isn't cheap,
:17:48. > :17:54.the most expensive, the Prince of Wales Suite will set you back
:17:55. > :17:57.almost $13,000 a night! Andrew Love, Chairman of The Ritz
:17:58. > :18:12.Hotel joins us in the studio. Good morning. Nice to see you. Awe
:18:13. > :18:15.drew, let's just clarify something we've said many times in this
:18:16. > :18:19.programme already is the fact that the pound is falling in value.
:18:20. > :18:23.That's great for The Ritz. But your hotel is not really affected by
:18:24. > :18:30.movements in currencies so much, is that true? In terms of the room
:18:31. > :18:33.reservations, no. But in terms of overseas people coming for renowned
:18:34. > :18:37.afternoon tea, of course, overseas visitors would benefit from the
:18:38. > :18:42.cheeper pound and so, from that point of view, we do benefit in some
:18:43. > :18:49.way. But in terms of the people that tend to stay at the hotel, they
:18:50. > :18:53.would probably be able to afford to stay in the hotel in any event.
:18:54. > :18:59.Speaking of affordability, I want to pick up on the $13,000 a night. Who
:19:00. > :19:05.stays there? Well, very many successful people that like luxury.
:19:06. > :19:12.But ?13,000 a night. Dollars. People with their boats and yachts which
:19:13. > :19:16.are even more expensive to hire. How many afternoon teas do you serve?
:19:17. > :19:22.Between 400 and 500. It is afternoon tea for everybody. It is a treat for
:19:23. > :19:25.grandmothers. It is a treat for children on birthday parties and it
:19:26. > :19:30.is a lovely atmosphere because you get lots of people coming through
:19:31. > :19:35.the hotel. The joy of the hotel in that sense is that people make for a
:19:36. > :19:39.nice atmosphere. There is a lot of happiness and it is very important
:19:40. > :19:44.that we manage to achieve some sense of happiness in this day and age.
:19:45. > :19:48.The Ritz is iconic. When people think of London and staying in a
:19:49. > :19:54.thol, Run is a name that most heard of around the world, it has been
:19:55. > :19:59.around for 110 years. A big birthday this year, but you got a Michelin
:20:00. > :20:03.star this year which is a big deal, isn't it? Well, it is an amazing
:20:04. > :20:10.deal. It is a great compliment to the staff and in particular John
:20:11. > :20:14.Williams and Simon Gurling who are the service and food side because it
:20:15. > :20:19.is very difficult for a hotel per se to get a Michelin star simply
:20:20. > :20:25.because we have so many facets of catering whereas a chef that has a
:20:26. > :20:34.restaurant only has to serve lunch and dinner and that's it, we have to
:20:35. > :20:38.serve, breakfast, room, dinner, room services, tea and everything. You
:20:39. > :20:43.talked about there has not been affect of the financial downturn or
:20:44. > :20:52.Brexit. I'm interested who is your typical civil servantor? Can the
:20:53. > :20:58.hotel industry it diversified you get niche hotels and boutique
:20:59. > :21:02.hotels, can The Ritz compete? We have been given a Royal Warrant. A
:21:03. > :21:06.lot of people want to come and see the warrant because there are
:21:07. > :21:14.amazing amount of people abroad that are really interested quite properly
:21:15. > :21:21.in our Royal Family. We get a reservance people. We are a modern
:21:22. > :21:24.hotel, we maybe 1 to years old, but we're up-to-date in terms of
:21:25. > :21:28.broadband and all the other things that go with it. I know you meet the
:21:29. > :21:30.rich and the famous, the great and the good, all sorts of different
:21:31. > :21:34.individuals that come and go as you've explained, it is for those
:21:35. > :21:37.who want to take their granny for a special event, but you've got the
:21:38. > :21:41.very well known who want a private experience at The Ritz. What's been
:21:42. > :21:48.the biggest moment for you in your time at The Ritz? Well, I suppose
:21:49. > :21:51.the biggest moment was when Baroness Thatcher passed away. She had been
:21:52. > :21:56.staying at the hotel for three months. The last three months of her
:21:57. > :21:59.life she was in The Ritz? She stayed in The Ritz and it was a compliment
:22:00. > :22:03.to the staff. It is only the staff that make every business and in
:22:04. > :22:08.particular, in the hospitality business. It never came out in the
:22:09. > :22:13.newspaper. And the other thing, whatever political persuasion one
:22:14. > :22:20.happens to be, she was an amazing lady because she organised that, the
:22:21. > :22:25.lady that did her hair in the hotel, the maid that made her bed, the man
:22:26. > :22:32.that brought her room service were invited to her state funeral and
:22:33. > :22:37.they went and it was an honour for the hotel to have those people
:22:38. > :22:45.invited. Andrew, thank you for that insight. Andrew Love, from The Ritz.
:22:46. > :22:47.Thank you. These are the moments when our viewers complain we haven't
:22:48. > :22:49.got enough time. Time for the latest in our ongoing
:22:50. > :22:52.CEO Secrets series. Today it is the turn of Hollywood
:22:53. > :22:54.tattoo parlour boss and cosmetics entrepreneur Kat Von D -
:22:55. > :22:58.who is one of the world's most high She has something of a cult status,
:22:59. > :23:01.and has tattooed the great and the good of Hollywood including
:23:02. > :23:04.Miley Cyrus, Lady Gaga, Tattoos aside, what advice did Kat
:23:05. > :23:20.wish she'd had when she started out? I think why did I become a tattoo
:23:21. > :23:23.artist? Was it to be the best version of myself that I could be?
:23:24. > :23:27.Was it to like help other people have a better experience on this
:23:28. > :23:41.planet while we're still alive or to make a bunch of money?
:23:42. > :23:47.I think when you live your life solely identified by like
:23:48. > :23:51.materialistic things you're bound to suffer and really to struggle. I
:23:52. > :23:57.look at my make-up line or my tattooing career or anything I do
:23:58. > :24:00.and does it bring me joy? You remember like the initial intention
:24:01. > :24:04.and I think that's really hard for a lot of people to do, especially in a
:24:05. > :24:07.day and age when you get side tracked by how many followers do you
:24:08. > :24:12.have, what house or car do you drive? All that stuff is distracting
:24:13. > :24:17.or it can be if you're careful. Art has been my best friend. That best
:24:18. > :24:19.friend that tags along with you everywhere you go makes life a much
:24:20. > :24:40.more amazing place. Fisher Price's latest doll shouts,
:24:41. > :24:47."I need a smoothie, I'm going to rumba." Boys and girls... Is that a
:24:48. > :24:50.stereotype? Boys and girls, unless things have changed tend to have
:24:51. > :24:54.different interests growing up and indeed in adult life. But she may
:24:55. > :25:01.have have a point. Not so much around the gender side maybe, but I
:25:02. > :25:10.think she is likely to upset a pum of people with the yoga and
:25:11. > :25:15.smoothies. We got Jess saying children's toys only set a bad
:25:16. > :25:20.example if children are taught to use them violently. They have got to
:25:21. > :25:26.come up with new inside. Is it really that bad? Being of a certain
:25:27. > :25:29.generation, it is nice to see physical toys which keeps kids off
:25:30. > :25:35.the screens for 23 hours a day. The fact that toys are around is a
:25:36. > :25:39.positive. I like that. Ken now, he is often seen with ironing in the
:25:40. > :25:46.back of the car! Really? What, the modern man? Ken as in the doll with
:25:47. > :25:51.Barbie, they're mixed up in terms of their roles. In terms of what
:25:52. > :25:56.they're doing and not doing. You see, Ben should know these things!
:25:57. > :25:58.Don't say you don't get all the news from us here on Business Live. Have
:25:59. > :26:12.a really good day. Bye-bye. Hi there. We have got a quiet week
:26:13. > :26:16.of weather coming up. There will be a little bit of rain to come, but
:26:17. > :26:18.generally there will be cold starts to the morning especially during the
:26:19. > :26:19.early part of the week.