:00:00. > :00:08.This is Business Live from BBC News with Ben Thompson and Sally Bundock.
:00:09. > :00:13.A $50 billion boost for US businesses.
:00:14. > :00:15.Japan's Softbank promises to invest in America.
:00:16. > :00:18.a move Donald Trump says is a result of his election victory.
:00:19. > :00:39.Live from London, that's our top story on Wednesday, 7th December.
:00:40. > :00:42.It is the billionaire bromance - the boss of Japan's Softbank met
:00:43. > :00:45.with the US President-elect to talk trade, investment and
:00:46. > :00:53.Also in the programme, it's the media merger that
:00:54. > :00:55.could be shape the future of the industry.
:00:56. > :00:57.AT and Time Warner will try and convince US
:00:58. > :01:01.politicians their tie-up is a good idea.
:01:02. > :01:03.It was another record close in America pushes
:01:04. > :01:13.It translated into a better start for Europe.
:01:14. > :01:14.Does slow internet access hinder economic growth?
:01:15. > :01:21.We're more connected than ever before, but as our reliance
:01:22. > :01:23.on the web grows, we'll meet the firm that says its services
:01:24. > :01:25.are 128 times faster than traditional connections.
:01:26. > :01:28.A "processing error" by the UK's statistical authority means
:01:29. > :01:38.the trade deficit is actually ?6 billion higher than they thought.
:01:39. > :01:45.What's your biggest miscalculation you've ever made? Don't hold back.
:01:46. > :01:51.Send your confessions. $50 billion - that's how much
:01:52. > :02:03.the head of Softbank says he will invest in US businesses
:02:04. > :02:05.after meeting with President As if that bumper cash
:02:06. > :02:12.injection wasn't enough, he also announced that the firm
:02:13. > :02:15.would create 50,000 Well, the announcement saw shares
:02:16. > :02:20.in the Japanese technology firm jumping 5% when the market
:02:21. > :02:22.opened earlier today. Softbank isn't adverse
:02:23. > :02:30.to splashing the cash. In July, the firm paid $32 billion
:02:31. > :02:33.to acquire the UK technology firm ARM Holdings which makes microchips
:02:34. > :02:36.for the likes of Apple and Samsung. Here's what Donald Trump had to say
:02:37. > :02:39.after meeting with Masayoshi Son, Softbanks billionaire
:02:40. > :02:55.boss and founder. This is someone from Softbank. He
:02:56. > :02:59.agreed to invest $50 billion in the United States and 50,000 jobs and he
:03:00. > :03:01.is one of the great men of industry. I just want to thank you very much.
:03:02. > :03:12.Thank you. For the details we can speak
:03:13. > :03:26.to our Asia business It pay to be in that golden elevator
:03:27. > :03:30.in Trump Tower? It was very apparent that the rapport that the two
:03:31. > :03:33.billionaires shared, it has been called a billionaire bromance, it
:03:34. > :03:36.was evident in the way that they were speaking to one another, and
:03:37. > :03:39.the body language, the arms around one another, but certainly, there
:03:40. > :03:45.are some very real and practical reasons why Softbank, the boss of
:03:46. > :03:48.Softbank, made this decision to invest in the United States at a
:03:49. > :03:53.time when arguably it could be said the US is pulling out of global
:03:54. > :03:57.trade deals that Japan for instance has been such a big backer of, the
:03:58. > :04:01.Trans-Pacific Partnership, the TPP that we have been speaking about, on
:04:02. > :04:05.the channel, and one of the key reasons Sally is because, of course,
:04:06. > :04:13.for many years now Japan has struggled to retain that top slot,
:04:14. > :04:15.the top slot in terms of IT innovation technology innovation and
:04:16. > :04:20.this particular investment, it is thought, will give Softbank the
:04:21. > :04:25.access to Silicon Valley, to the United States and hopefully, create
:04:26. > :04:30.the synergyies that the boss of Softbank believes he needs to keep
:04:31. > :04:34.going and acquiring in terms of his vision for the company and in terms
:04:35. > :04:37.of the internet of things, the grand future that he has designed for
:04:38. > :04:41.Softbank. It goes to show that Softbank and those in charge, they
:04:42. > :04:46.are pretty canny. They snapped up Arms Holdings of the UK, one of our
:04:47. > :04:49.prized IT companies here and just to mention, that Softbank, we get the
:04:50. > :04:55.impression, it is a financial firm, it is not, it is all about IT, isn't
:04:56. > :04:59.it? Absolutely, all across-the-board, its entire vision
:05:00. > :05:04.is very much focussed on the concept of the internet of things, but it is
:05:05. > :05:09.not just in the internet, or those sorts of devices, chips, as you were
:05:10. > :05:12.mentioning earlier, it is about telecommunications, a few years ago,
:05:13. > :05:17.Softbank made a massive investment in the United States, some $22
:05:18. > :05:22.billion worth to acquire a company called Sprint. That investment has
:05:23. > :05:26.not gone very well. To date it lost something like $7 billion worth of
:05:27. > :05:33.its value. Now, there are some who are speculating that this particular
:05:34. > :05:38.move by the Softbank boss at a time when it seems like president-elect
:05:39. > :05:42.Trump is becoming more amenable to future business deals in the United
:05:43. > :05:47.States, maybe particularly savvy because the Softbank boss has been
:05:48. > :05:50.trying to merge or buy another US telecoms company, but it hasn't gone
:05:51. > :05:53.through because of regulations in the United States. The environment
:05:54. > :05:58.maybe a bit more pleasant for him now.
:05:59. > :06:03.For now, thank you for your detail on that story. Interesting.
:06:04. > :06:06.The media mega-deal that could end up being one of the biggest
:06:07. > :06:16.In October, the US telecoms giant AT announced plans to buy
:06:17. > :06:17.entertainment group Time Warner for $86 billion.
:06:18. > :06:20.The deal would be a merger of AT's distribution networks
:06:21. > :06:23.But it is far from signed and sealed.
:06:24. > :06:26.In a few hours the bosses of both companies will appear before a US
:06:27. > :06:29.Senate committee to try to ease fears that the deal
:06:30. > :06:43.AT is the world's biggest telecoms company, according to Forbes.
:06:44. > :06:45.Last year it posted revenues of $146.8 billion.
:06:46. > :06:48.It's mobile phone business has just over 133 million
:06:49. > :06:53.customers in the US and another 10.7 million in Mexico.
:06:54. > :06:57.And AT has TV channels with 37.7 million subscribers
:06:58. > :07:07.They're hoping the tie up will help them add to that
:07:08. > :07:09.by offering Time Warner's vast content including CNN and HBO
:07:10. > :07:11.which makes international hit programmes like The Sopranos
:07:12. > :07:22.It also owns Hollywood's Warner Bros movie studio.
:07:23. > :07:24.The US president-elect Donald Trump has vowed to block
:07:25. > :07:26.the tie-up saying it puts "too much concentration of power
:07:27. > :07:33.Although it's the US Justice Department which will have the final
:07:34. > :07:36.say on whether it can happen or if conditions will be attached.
:07:37. > :07:38.Samantha Tomaszczyk is a Financial Reporter
:07:39. > :07:51.Good morning. So, you know, it is a huge deal if it does go ahead and
:07:52. > :07:55.yet there will be hurdles along the way. Talk us through how it is
:07:56. > :07:58.likely to go today and beyond with the competition authorities? Sure.
:07:59. > :08:02.So today there is a court hearing, I think it is worth pointing out that
:08:03. > :08:07.today's court hearing is just advisory so it will set the backdrop
:08:08. > :08:11.along with Donald Trump's comments to the general public opinion on
:08:12. > :08:14.this deal, but as you said, it is the Justice Department which will
:08:15. > :08:19.have the final say. Do you think the two companies will have to give up
:08:20. > :08:23.much or get rid of certain assets in order for the two to come together
:08:24. > :08:26.because although they are both big players in their respective markets,
:08:27. > :08:31.they do do different things, don't they? They do, but it is a case of
:08:32. > :08:34.bundling content. I think with any deal of this size, access to
:08:35. > :08:39.programming which rivals tends to be quite a big issue. So I think the
:08:40. > :08:42.Justice Department will really look at whether rivals will continue to
:08:43. > :08:46.have good access to programming. That's been a concern by some. I
:08:47. > :08:49.touched on it in the introduction about Donald Trump threatening to
:08:50. > :08:55.block the deal. I suppose the question is can he and what happens?
:08:56. > :09:01.It doesn't go straight to him, but it does go to one of his
:09:02. > :09:06.departments, the DOJ, doesn't under estimate the power of public
:09:07. > :09:11.opinion. So... He hasn't. That's how he got elected. It worked for him.
:09:12. > :09:16.Briefly, before we wrap up, just explain what it will mean for users,
:09:17. > :09:19.consumers, if the two marry up eventually and it could take a long
:09:20. > :09:23.time because of legal issues, but if they come together, will it be
:09:24. > :09:26.better for consumers or worse? It really could go either way and it is
:09:27. > :09:30.up to the regulator to make sure it goes the right way for scunlers and
:09:31. > :09:34.the access to programming continues to be quite widespread. But if they
:09:35. > :09:38.manage to promote direct TV now which is their video product and if
:09:39. > :09:43.it helps them advance that, then it could be good for consumers and for
:09:44. > :09:47.video content competition. Samantha, thank you for your expertise on
:09:48. > :09:52.this. As ever we will keep you up-to-date with every twist and turn
:09:53. > :09:56.on that trying to go up the aisle as it were. I'm talking about the
:09:57. > :09:59.wedding! All the coverage of the wedding!
:10:00. > :10:07.The drugmaker Pfizer has been fined ?84 million -
:10:08. > :10:10.that's about $106 million - here in the UK for "charging
:10:11. > :10:12.excessive prices" to the publicly run National Health Service
:10:13. > :10:24.The competition regulator says the price went up a massive two
:10:25. > :10:26.thousand six hundred per cent overnight.
:10:27. > :10:28.The drug's distributor, Flynn Pharma was also fined.
:10:29. > :10:31.The US company says the decision is wrong and it will appeal.
:10:32. > :10:33.Australia's economy shrank for the first time in five years
:10:34. > :10:37.The dip of 0.5% is being blamed on spending cuts by businesses,
:10:38. > :10:40.The mining boom and high demand for Australia's commodities have
:10:41. > :10:55.kept the economy recession-free for the past 25 years.
:10:56. > :11:00.Shares in the troubled Italian bank have risen amid reports that the
:11:01. > :11:05.Government is poised to take a controlling stake. It is trying to
:11:06. > :11:11.put a 5.5 billion rescue plan in place to help it deal with its huge
:11:12. > :11:15.volume of bad debt. There as been heightened uncertainty since Italy's
:11:16. > :11:25.Prime Minister decided to offer his resignation after losing a
:11:26. > :11:28.referendum at the weekend. The FTSE seeing its biggest rise
:11:29. > :11:32.since the referendum vote in the UK. That was back on 23rd June. So
:11:33. > :11:36.markets doing well. After another record
:11:37. > :11:55.close on Wall Street - It is a similar picture in Europe.
:11:56. > :11:58.The markets are strong in early trade. Traders are looking ahead to
:11:59. > :12:02.the European Central Bank meeting. That's taking place on Thursday.
:12:03. > :12:06.That's expected to bring us some news maybe that it will extend its
:12:07. > :12:10.stimulus programme beyond the March end date. That's always been in the
:12:11. > :12:15.diary, but perhaps it could go longer given the uncertainty and
:12:16. > :12:19.Italy's market doing well yesterday, posting its best levels since the UK
:12:20. > :12:25.referendum vote. Even, of course, as so much remains in doubt about its
:12:26. > :12:30.political future and its banks were the biggest winners.
:12:31. > :12:32.Last month's decision by India's government to withdraw around 80%
:12:33. > :12:35.of the country's banknotes sent shockwaves through the country.
:12:36. > :12:37.And its impact is likely to affect the central bank's
:12:38. > :12:39.interest rate decision - it's due to announce it shortly.
:12:40. > :12:55.There is no doubt that the shortage of cash here in India will have an
:12:56. > :12:59.impact on the economy and that's why, the bank of India's decision on
:13:00. > :13:04.interest rates is being watched closely. Most economists expect
:13:05. > :13:07.there will be at least a quarter of a percentage cut in the main lending
:13:08. > :13:12.rate. People have cut back on spending over the last one month and
:13:13. > :13:16.this has hit businesses across-the-board. One of the sectors
:13:17. > :13:21.feeling the effects of the ban on high currency value notes is the
:13:22. > :13:25.auto industry. Some car makers are reporting a decline in sales. But
:13:26. > :13:30.for the people, a rate cut could bring in some good news. Interest
:13:31. > :13:35.rates for cars and home loans hover around 9% in India. Making it
:13:36. > :13:38.expensive for people to borrow. Companies hope that lower interest
:13:39. > :13:43.rates could help boost consumer demand. There has been widespread
:13:44. > :13:49.criticism that the implementation of the ban on all currency notes was
:13:50. > :13:54.mishandled. Much of it is directed at the governor of the bank of
:13:55. > :13:59.India. He will be holding his first press conference since the policy
:14:00. > :14:02.was introduced a month ago and he could face tough questions on his
:14:03. > :14:07.organisation and the execution of some decisions. But most of all,
:14:08. > :14:13.people will be looking for an answer on how much longer they'll have to
:14:14. > :14:20.wait for this cash crunch to be over.
:14:21. > :14:23.Joining us is Richard Dunbar who is Investment Director
:14:24. > :14:36.So there is a lot going on, we've got Australian growth story going in
:14:37. > :14:41.reverse. We've got the Indian rates and Italy and Softbank and Trump
:14:42. > :14:48.tweets causing reaction on markets. Talk us through what's on your mind.
:14:49. > :14:50.What are you keeping an eye on most? The markets are looking at Donald
:14:51. > :14:54.Trump's positive policy, infrastructure spend and tax cuts,
:14:55. > :14:59.deregulation and that's good. And that talks to the mood music that
:15:00. > :15:02.we're seeing in Europe and Japan and elsewhere and despite rising
:15:03. > :15:08.interest rates, markets are tend to go say on balance that's positive,
:15:09. > :15:10.but there is plenty to think about. Interest rates are going up around
:15:11. > :15:14.the world. They are likely to go up in the US. That is generally
:15:15. > :15:16.unhelpful, but money is cheap and markets are focussing on that at the
:15:17. > :15:24.moment. Markets have got uncertainty by the
:15:25. > :15:29.bucket load and they are shaking it off. We had some uncertainty from
:15:30. > :15:33.Italy over the weekend, but you could argue it is Italy's 63rd
:15:34. > :15:41.Government since the war, so maybe it is business as usual. With Italy,
:15:42. > :15:44.the view about the banks is that one element that could derail the
:15:45. > :15:51.optimism, some kind of bailout on the way? Investors might be thinking
:15:52. > :15:55.there is going to be a resolution to this problem, and we are starting to
:15:56. > :15:57.see it. Richard will return in five minutes
:15:58. > :15:59.with more detail on financial markets.
:16:00. > :16:02.Does slow internet access hinder economic growth?
:16:03. > :16:05.As our reliance on the web grows, we'll meet the firm that
:16:06. > :16:09.says its services are 128 times faster than traditional connections.
:16:10. > :16:20.You're with Business Live from BBC News.
:16:21. > :16:22.That hurts your eyes if you stare at it too long!
:16:23. > :16:25.I try not to stare at it! The Competition and Markets
:16:26. > :16:27.Authority has fined drugs giants Pfizer and Flynn almost ?90 million
:16:28. > :16:29.for raising the price of an anti-epilepsy drug
:16:30. > :16:32.it sells to the NHS. Pfizer was fined a record
:16:33. > :16:34.?84.2 million for their part Flynn was hit with
:16:35. > :16:47.a ?5.2 million fine. Theo Leggett is in our
:16:48. > :17:00.Business Newsroom. Some big fines, especially for
:17:01. > :17:07.Pfizer. A very big fine, although Pfizer is also a big company, and
:17:08. > :17:14.more than able to absorb it. Pfizer was selling an anti-epilepsy drug, a
:17:15. > :17:16.branded drug, and the prices in the UK are regulated according to the
:17:17. > :17:24.pharmaceutical price regulation scheme. What Pfizer did was license
:17:25. > :17:30.it to Flynn, which the branded it, removed the name, and sold it as a
:17:31. > :17:34.generic products. Normally generic products are cheaper, but in this
:17:35. > :17:38.case clinical advice was that patients already using it should
:17:39. > :17:41.continue using the same product, made by the same and a Thatcherite,
:17:42. > :17:49.not even the same one made by somebody else. So Flynn could own
:17:50. > :18:00.brand it, push the price up, and the cost to the NHS of a pack rows of
:18:01. > :18:04.from ?2 83 to ?67 50 overnight. With Flynn taking in the extra income,
:18:05. > :18:08.Pfizer could raise its prices, said they were both able to make money.
:18:09. > :18:13.The authority reckons that this was abuse of a dominant position, and it
:18:14. > :18:19.was wrong, hence the fine, but Pfizer says that before on branding
:18:20. > :18:22.the drug was being produced at a loss, and the deal with Flynn
:18:23. > :18:31.protected the supply for patients of. He said the findings are wrong
:18:32. > :18:36.and they plan to appeal. The interesting latest move, with
:18:37. > :18:41.Pfizer. More on the website. This is the
:18:42. > :18:45.story we have been following about the future for Port Talbot steel
:18:46. > :18:53.working. The ball is in the Court of the unions, is the view there. Full
:18:54. > :18:54.details on the future for steel-making in South Wales.
:18:55. > :19:01.Shares in the Japanese technology firm Softbank have jumped 5%
:19:02. > :19:03.after the company said it would invest $50 billion
:19:04. > :19:07.The announcement came after a meeting in New York
:19:08. > :19:10.between chief executive Masayoshi Son and US
:19:11. > :19:23.Donald Trump is claiming it is a personal victory, he says the
:19:24. > :19:28.investment is only happening because he won the election. One that we
:19:29. > :19:35.will follow very closely. London grabbing the headlines in the
:19:36. > :19:41.markets. The rally is going on and on.
:19:42. > :19:43.Few inventions have changed the world as
:19:44. > :19:46.As consumers, we've never been more connected,
:19:47. > :19:50.and for business it's transformed how and where they operate.
:19:51. > :19:52.But it's the speed of our broadband that in some cases can
:19:53. > :19:56.There are huge differences in the quality of internet services
:19:57. > :20:00.In some countries, old pipes and wires mean firms are battling
:20:01. > :20:06.And so regulators are trying to improve competition,
:20:07. > :20:09.like here in the UK, where the majority of broadband
:20:10. > :20:18.And so that's where new market players,
:20:19. > :20:25.Hyperoptic operates independently from the main telephone exchanges
:20:26. > :20:28.to provide internet directly to people's homes, and that allows
:20:29. > :20:34.the firm to provide speeds over ten times faster than many rivals.
:20:35. > :20:42.Dana Tobak is the founder and chief executive of Hyperoptic.
:20:43. > :20:48.This is so relevant, with UK Government announcing in the Autumn
:20:49. > :20:55.Statement a huge investment in technology. We are so excited that
:20:56. > :21:01.we are seeing movement away from being dependent on the Monopoly and
:21:02. > :21:04.the price competition only, and actually focus on investment and
:21:05. > :21:09.getting to a full fibre solution, which is what the country needs. You
:21:10. > :21:13.have been operating here for many years, I would imagine it has been
:21:14. > :21:18.frustrating, because we have an old infrastructure that has been here
:21:19. > :21:23.for generations, and it has been an incremental slow move to update
:21:24. > :21:28.things. We have seen the incumbents tend to move when small players
:21:29. > :21:34.start to do something different. When we founded in 2005, we were the
:21:35. > :21:37.first to bring up to 24 meg services, and at the time the
:21:38. > :21:42.environment were asking why anybody would need that. It is lovely that
:21:43. > :21:47.here we are with hyper optic ten years later, and when we announced a
:21:48. > :21:52.one gig, it was not so much about why we would need it, but what would
:21:53. > :21:57.we do with it, and that is exciting. What needs to change? Many people
:21:58. > :22:04.will be frustrated that they travel around the country, certain parts of
:22:05. > :22:08.the country are poor with signals, and yet if you go to Hong Kong, they
:22:09. > :22:15.have brilliant services, even underground. Is it just the legacy
:22:16. > :22:24.issue? It is an education. For many years, the regulator focused on
:22:25. > :22:26.price competition, from 2005 until 2011, 2012, it was about providing
:22:27. > :22:34.an infrastructure where there was competition. That is when you saw
:22:35. > :22:39.the low prices. At that time, it was considered a victory. When there is
:22:40. > :22:42.under investment and a perception that price is more important than
:22:43. > :22:47.speed, you will get the wrong long-term results. The good news for
:22:48. > :22:50.us was that it presented an opportunity, we knew better, and we
:22:51. > :22:54.knew that we could create the foundation for tomorrow and still
:22:55. > :23:02.ask people to pay around the same price as the date, but for
:23:03. > :23:04.fundamentally better broadband. It is a fascinating subject. We will
:23:05. > :23:09.keep an eye on it. In a moment we'll take a look
:23:10. > :23:12.through the business pages. But first, here's a quick reminder
:23:13. > :23:19.of how to get in touch with us. Our page is where you can stay ahead
:23:20. > :23:24.with the breaking news. We keep you up-to-date with the latest details,
:23:25. > :23:28.with insight and analysis from our team of editors around the world. We
:23:29. > :23:42.want to hear from you as well. Get involved on the web page. We are on
:23:43. > :23:44.Twitter and on Facebook. On TV and online, whenever you need to know.
:23:45. > :23:46.What other business stories has the media been
:23:47. > :23:49.Richard Dunbar, who is investment director
:23:50. > :23:51.at Aberdeen Asset Management, joins us again.
:23:52. > :24:01.A statistical error at high levels is what is going on? The ONS have
:24:02. > :24:05.miscounted the gold exports and imports in the trade deficit
:24:06. > :24:09.figures, and they are 6 billion worth of we had expected. It is a
:24:10. > :24:13.large error, but importantly, because everybody is looking at it,
:24:14. > :24:19.we hope the figure improves, given weaker sterling and the fact it has
:24:20. > :24:24.gone the wrong way is unhelpful. Somebody is in trouble at the ONS.
:24:25. > :24:29.At least they have owned up and it has been fixed, so we know the
:24:30. > :24:34.number. Maybe there has been more gold imports than we thought. View
:24:35. > :24:40.was getting in touch, talking about their biggest miscalculation. One
:24:41. > :24:45.person says, trusting a bank to fund my business of. One person says,
:24:46. > :24:49.blame it on the latest software update, we always do.
:24:50. > :24:56.Richard, what is your biggest miscalculation? I have made some on
:24:57. > :25:01.airline bookings, one not booking for flights for the family to go on
:25:02. > :25:07.holiday, and finding out the night before, you do not get a good deal
:25:08. > :25:12.with six hours notice! Looking at other stories, what else? The Donald
:25:13. > :25:18.Trump tweets are interesting. They are moving markets. Boeing was down
:25:19. > :25:25.yesterday on the back of him saying he would not rebook the new Boeing.
:25:26. > :25:29.For a full swan. Softbank was up, given the enthusiasm with which the
:25:30. > :25:36.Chief Executive Rosneft. Or all traders now following him? I suspect
:25:37. > :25:40.all traders are and all diplomats have now signed up to his Twitter
:25:41. > :25:44.account as well, given that that is the route through which we find out
:25:45. > :25:46.diplomacy as well as business. It is a brave new world.
:25:47. > :25:50.There will be more business news throughout the day on the BBC Live
:25:51. > :25:53.webpage and on World Business Report.