24/10/2016 BBC Business Live

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

Regulators examine AT's $85 billion takeover of Time Warner.

Live from London, that's our top story

The deal would bring together millions of TV

Lawmakers and both presidential candidates say that raises serious

Also in the programme: More choppy waters for South Korean

Its shares have plunged after it said it would close

Shares in Europe are looking like this after Japan and China opened

the week slightly higher. We will examine what is moving the numbers.

And why the weak pound means a five-star stay

The boss of London's Ritz will be here a little later

with the inside track on the century old institution.

And as a mum slams Fisher-Price for a toy that reduces mothers

to yoga and smoothies, let us know should toys set

We're starting with a deal that could prove to be the biggest

This weekend telecoms giant AT announced plans to buy media empire

Time Warner but it's already causing a political storm in the US.

Both presidential candidates have made their views known.

Hillary Clinton says it raises a number of concerns

and Donald Trump has already said he would block the merger

But if, and it's still a big if, the merger is approved,

the US telecoms giant will pay $85.4 billion for the

That's close to ?70 billion and critics say it concentrates too

For that much money you could buy Manchester United Football Club 43

times over, Yahoo 18 times over and even Twitter six

AT has 141.8 million mobile customers and 25 million TV

subscribers making it the largest pay TV provider in the US.

The deal will allow AT to combine its formidable

distribution network with Time Warner content including

everything from fan favourite Game Of Thrones to NBA basketball

This is Donald Trump on his plans to block the merger if he wins. As an

example of power structure and infighting, AT is buying time

Warner and thus CNN, the deal we will not approve in my

administration, because it is too much concentration of power in the

hands of too few. We are usually pretty clear where he stands on

these things! That was Donald Trump of course.

Joining me now is Alice Enders, director of research at the media

Thank you for coming in. Just give us a sense of why so many people are

concerned about these two huge companies coming together. Many like

Donald Trump are arguing it is too much power in too few hands. AT is

a telecommunications company. It has a wireless business, a fixed line

business, and Time Warner is a studio. It has many beautiful

channels, and incredible presence, CNN news as well. I think Donald

Trump doesn't like CNN news and its coverage of him. More generally,

outside of the political arena, of course people are always going to be

concerned when they see an $85 billion deal. However there is a

precedent here which is the NBC Universal deal which got through a

few years ago subject to a number of conditions. I think on the

distribution side, the distributors of HBO and Game of Thrones, that

popular show, it would be concerned that the combination prevents them

from showing this content and that is where the justice department will

be very careful. That is what we have got to be clear about. It is a

decision on the part of the US justice department, not the decision

of politicians. Call me old-fashioned, I like to think the

regulator is there to do his job. I don't think politicians should

necessarily intervene in that sort of deal when there is a regulator

there to look at it very closely. What with the two bring together? At

the moment we are looking at them as big media organisations, media in

different respects. What would the combine company bring? What can it

deliver? For AT it is about getting a privileged channel into a

very big media company. AT isn't really a media company. It is a

telecoms company. What do people connected internet to do? To enjoy

content. It is all about premium content nowadays and what AT wants

to do is to simplify its life by having one of the major studios

right there, so it can tap into its content, do innovative things. AT

is very focused on developing mobile broadband, the technology of the

future. If it were to go ahead, let's pretend that whole deal is

signed and sealed and regulators are K with it, will consumers in the US

think that is the place to go? Will Verizon still be a competitor? They

have taken a different track. Of course they are number one in the

US. They have invested in content, they have bought AOL, but it is more

concerned about being a pipe, a distribution network. Our consumers

of course don't want to just watch the content that is produced by

Warner. They want to watch the content produced by Disney,

Paramount, whatever. In general what we see is that every single

distribution network has got to get all of the content to make the

customer happy. Thank you so much were coming in and share your

insight into this story. One that will go on and on, I imagine. Stay

tuned and we will bring you all the twists and turns of that very

interesting debate. Here the other business news this morning.

The Belgian region of Wallonia has rejected what it calls

an ultimatum from Brussels to back the EU trade deal with Canada.

The EU says a planned summit with Canada on Thursday can only go

ahead if it guarantees by today that it won't stop Belgium

Wallonia says the deal, known as CETA, could allow southern

Belgium to be flooded with products from North American firms.

Japan continues to feel the effects of the global slowdown.

The latest trade figures show exports fell nearly 7 percent last

It's the 12th straight month of decline in overseas demand

The country's imports also fell, down 16 percent.

And one non-business story we're keeping an eye on today:

The French authorities are clearing the notorious migrant camp

Several thousand people have been living there, many of them trying

to smuggle themselves across the Channel into the UK.

France has promised to relocate all of them

and the site is scheduled to be demolished later in the week.

Overnight there were clashes between the police and groups of migrants

with some insisting they'd rather sleep on the streets

There is a lot of coverage on our website and other for that matter

about a story that emerged this weekend with bankers with their hand

quivering over the relocation button. This is bankers based in

London. Financial services are used contributed to UK economic growth

but in the wake of the vote to leave the European Union, what would

happen? Would the staff go elsewhere and would the banks want to

relocate? On the Radio Four programme this morning there was a

statement saying the effect of Brexit would be in the medium-term.

More information on that story online.

Now let's get more information about changing shipping. -- Hanjin

Shipping. Their shares have slumped 14% after they announced they would

close all of their European operations including the regional

headquarters in Germany. The process will start this week once the court

signs off on the bankruptcy. We have been tracking the story for quite a

while. It is South Korea's biggest shipping company but it has been

broken up and will potentially be liquidated after suffering from

years of losses. In August we learned that creditors were refusing

to give it any more financial support, which caused massive

disruption to global supply chains. Many of its ships were stranded at

sea. So Hanjin is putting up some of its biggest assets for sale.

Analysts say exiting Europe will benefit its rivals. Good stuff.

Thank you. And a quick look at what happened on the Asian markets. The

new week I was good after a pretty volatile week. The Japanese earnings

season kicking off, meaning volumes are pretty light until then. Let's

look at Europe. The cut in the UK interest rates will feature in the

earnings for UK banks. Lloyds, RBS and Barclays report this week so we

will get an idea of what that means for their profitability. We have

seen big moves to slash current accounts for users as a result of a

fall in interest rates. In the US, we will get a big week for US

earnings. Google, Apple and Amazon later this week. Lots to look out

for as we explain from New York. It will be a busy week in business news

in the US. Text diet Apple will be reporting on Tuesday and everybody

will be playing close attention to iPhone sales for the last quarter.

Last month they launched the iPhone seven which seems to be winning with

consumers. On Wednesday electric car maker Tesla will be reporting on

earnings. Last week the company announced that all of its cars come

with full self drive hardware but the question by investors will be

the same. When will they start making money? Online retailer Amazon

will be reporting on Thursday and investors will want to hear that the

company's expectations for the holiday season, which believe it or

not is right around the corner. And we will get the strength of the US

economy when the Congress department releases growth numbers for the last

quarter. Some -- and we are on it. Now we have got Richard Hunter. Head

of Wilson King investment management. Things get into full

swing on both sides of the pond, certainly in UK and Europe the

biggest story will be the banks. We are expecting updates from roads,

Barclays and RBS and also Deutsche Bank in Germany. In light of that

current travails. They have had an awful year. They have indeed. They

have still got the $14 billion fine hanging over them which is yet to be

renegotiated. There was some hope that would be done before the

election, the US election, but time is running out. The banking story is

really interesting. On the one hand they are struggling to make money in

this record environment of low interest rates, certainly with the

cut in UK banks earlier in the year. But then Deutsche Bank is facing

fines, regulation, tougher criticism, so it is a difficult

environment. There will not be much sympathy for bankers but it is a

tough environment. Yes, and things keep coming out of the woodwork.

Money-laundering, foreign exchange, PPI, the additional cost of

regulation and compliance anyway, and then as you say there are these

low interest rates which all things considered make it very difficult

for the banks. The share prices have tended to reflect that since the

referendum vote in June. Even the likes of Lloyds, which has had a

pretty strong turnaround at the moment, could be affected by any

weakness in the UK economy as we go forward. Thank you. Richard will be

back in five minutes to talk about all sorts of things including

smoothies, yoga and toys. A combination you don't want to Miss!

But also still to come: Luxury for less. Why the weak pound could mean

a 5-star state could cost you less. The boss of London's Ritz will be

here with the inside track You're with Business

Live from BBC News. Microsoft has announced big price

rises for its business Business software and cloud services

priced in pounds will go Perhaps no surprise that Microsoft

is one of the first to make it quite so clear. Yes, indeed. This is

really about what has happened to the value of the sterling in the

aftermath of the referendum, and the relevant exchange rate here is

against the Euro. If we look at the graft, Stirling before the

referendum was at 130 and quickly went down to 120 and has drifted

down towards the current figure of 112, cumulative decline of about

14%. The Microsoft statement is very striking. It does not mention the

referendum, the result, Brexit, or the decline in sterling but that is

clearly what it is about. They are talking about realigning pricing

across the European Union and neighbouring countries. They made a

similar move in response to movements in Norwegian and Swiss

currencies earlier in the year. So we are getting an increase of 13% in

enterprise software services, for new businesses that is, and 22%

increase in enterprise cloud services. When we say enterprise, it

is not just business. It is also other organisations including the

British government, which will see a significant increase in its computer

software bills, and I guess the BBC, because we do use a certain amount

of products. This doesn't apply to consumer software. What you and I

buy for our computers at home will not be affected by this latest

Microsoft announcement. Andrew Walker, thank you.

A story that's on the Business Live page. News that one of the UK's best

aerospace firms, their shares are down 13% after issuing a second

profit warning this year. You've got shares in Petra Diamonds which

jumped. Releasing a trading update for the quarter which was

impressive. Production up 30%. It said it has got two new caves

starting up with a meaningful contribution to production. Diamonds

are forever especially if you're Petra!

Our top story, US lawmakers and both presidential candidates have

questioned AT's deal to buy Time Warner.

The US telecoms giant, already the country's third

largest cable provider, is paying $85.4 billion

for the company, which owns CNN and HBO.

A quick look at how markets are faring.

We have been keeping a close eye on the pound-dollar exchange rate. We

have got three regional Federal Reserve chiefs talking this week.

Any hint with what is happening US interest rates will be on their

radar. For many hotels in London the lower

pound has been a blessing - driving up occupancy rates over

the summer - and The Ritz Established 110 years ago in 1906,

it's at the very top end Owned by the Barclay family it has

136 rooms and suites But being pampered isn't cheap,

the most expensive, the Prince of Wales Suite will set you back

almost $13,000 a night! Andrew Love, Chairman of The Ritz

Hotel joins us in the studio. Good morning. Nice to see you. Awe

drew, let's just clarify something we've said many times in this

programme already is the fact that the pound is falling in value.

That's great for The Ritz. But your hotel is not really affected by

movements in currencies so much, is that true? In terms of the room

reservations, no. But in terms of overseas people coming for renowned

afternoon tea, of course, overseas visitors would benefit from the

cheeper pound and so, from that point of view, we do benefit in some

way. But in terms of the people that tend to stay at the hotel, they

would probably be able to afford to stay in the hotel in any event.

Speaking of affordability, I want to pick up on the $13,000 a night. Who

stays there? Well, very many successful people that like luxury.

But ?13,000 a night. Dollars. People with their boats and yachts which

are even more expensive to hire. How many afternoon teas do you serve?

Between 400 and 500. It is afternoon tea for everybody. It is a treat for

grandmothers. It is a treat for children on birthday parties and it

is a lovely atmosphere because you get lots of people coming through

the hotel. The joy of the hotel in that sense is that people make for a

nice atmosphere. There is a lot of happiness and it is very important

that we manage to achieve some sense of happiness in this day and age.

The Ritz is iconic. When people think of London and staying in a

thol, Run is a name that most heard of around the world, it has been

around for 110 years. A big birthday this year, but you got a Michelin

star this year which is a big deal, isn't it? Well, it is an amazing

deal. It is a great compliment to the staff and in particular John

Williams and Simon Gurling who are the service and food side because it

is very difficult for a hotel per se to get a Michelin star simply

because we have so many facets of catering whereas a chef that has a

restaurant only has to serve lunch and dinner and that's it, we have to

serve, breakfast, room, dinner, room services, tea and everything. You

talked about there has not been affect of the financial downturn or

Brexit. I'm interested who is your typical civil servantor? Can the

hotel industry it diversified you get niche hotels and boutique

hotels, can The Ritz compete? We have been given a Royal Warrant. A

lot of people want to come and see the warrant because there are

amazing amount of people abroad that are really interested quite properly

in our Royal Family. We get a reservance people. We are a modern

hotel, we maybe 1 to years old, but we're up-to-date in terms of

broadband and all the other things that go with it. I know you meet the

rich and the famous, the great and the good, all sorts of different

individuals that come and go as you've explained, it is for those

who want to take their granny for a special event, but you've got the

very well known who want a private experience at The Ritz. What's been

the biggest moment for you in your time at The Ritz? Well, I suppose

the biggest moment was when Baroness Thatcher passed away. She had been

staying at the hotel for three months. The last three months of her

life she was in The Ritz? She stayed in The Ritz and it was a compliment

to the staff. It is only the staff that make every business and in

particular, in the hospitality business. It never came out in the

newspaper. And the other thing, whatever political persuasion one

happens to be, she was an amazing lady because she organised that, the

lady that did her hair in the hotel, the maid that made her bed, the man

that brought her room service were invited to her state funeral and

they went and it was an honour for the hotel to have those people

invited. Andrew, thank you for that insight. Andrew Love, from The Ritz.

Thank you. These are the moments when our viewers complain we haven't

got enough time. Time for the latest in our ongoing

CEO Secrets series. Today it is the turn of Hollywood

tattoo parlour boss and cosmetics entrepreneur Kat Von D -

who is one of the world's most high She has something of a cult status,

and has tattooed the great and the good of Hollywood including

Miley Cyrus, Lady Gaga, Tattoos aside, what advice did Kat

wish she'd had when she started out? I think why did I become a tattoo

artist? Was it to be the best version of myself that I could be?

Was it to like help other people have a better experience on this

planet while we're still alive or to make a bunch of money?

I think when you live your life solely identified by like

materialistic things you're bound to suffer and really to struggle. I

look at my make-up line or my tattooing career or anything I do

and does it bring me joy? You remember like the initial intention

and I think that's really hard for a lot of people to do, especially in a

day and age when you get side tracked by how many followers do you

have, what house or car do you drive? All that stuff is distracting

or it can be if you're careful. Art has been my best friend. That best

friend that tags along with you everywhere you go makes life a much

more amazing place. Fisher Price's latest doll shouts,

"I need a smoothie, I'm going to rumba." Boys and girls... Is that a

stereotype? Boys and girls, unless things have changed tend to have

different interests growing up and indeed in adult life. But she may

have have a point. Not so much around the gender side maybe, but I

think she is likely to upset a pum of people with the yoga and

smoothies. We got Jess saying children's toys only set a bad

example if children are taught to use them violently. They have got to

come up with new inside. Is it really that bad? Being of a certain

generation, it is nice to see physical toys which keeps kids off

the screens for 23 hours a day. The fact that toys are around is a

positive. I like that. Ken now, he is often seen with ironing in the

back of the car! Really? What, the modern man? Ken as in the doll with

Barbie, they're mixed up in terms of their roles. In terms of what

they're doing and not doing. You see, Ben should know these things!

Don't say you don't get all the news from us here on Business Live. Have

a really good day. Bye-bye. Hi there. We have got a quiet week

of weather coming up. There will be a little bit of rain to come, but

generally there will be cold starts to the morning especially during the

early part of the week.