03/01/2017 BBC Business Live


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


Are we seeing the calm before the storm?


Today, markets in the UK and US open for the first time this year.


Some experts say business confidence is at an all-time high.


Live from London, that's our top story on Tuesday 3rd January.


It's set to be a defining 12 months for global businesses.


We'll ask why some companies are still feeling positive


despite the uncertainty of Brexit and a Trump Presidency.


Also in the programme, start as you mean to go on.


As we enter 2017, the Australian bank ANZ continues to sell of parts


We'll cross live to Singapore for the latest.


And, after the long holiday break, it's business as usual


They are all headed in one direction at the moment.


We'll be getting an expert view on how long it will last.


We'll be talking interactive billboards and digital


advertising with one of the industry's leading companies.


Dentists are calling for an end to the workplace cake culture.


Is there too much junk food at your work, or does it


Let us know, just use the hashtag #BBCBizLive.


It is never too early for cake and chocolate, just get some false


teeth! Today, markets in the US,


the UK and most of Asia have been open for the first trading session


of the year. In 2016, surprise political results


caused tremors on both sides of the Atlantic,


but a new report suggests there's been a sharp increase in business


confidence for the year ahead. The professional services firm


Grant Thornton says the number of companies expecting


to grow their annual profits Indeed, here in the UK, the Ftse


recently hit an all-time record, despite ongoing uncertainty over


Britain's relationship In fact, Europe's Stoxx


600 has entered a bull market just this week,


so it is 20% up from And it's a similar story


in the United States. The Dow Jones rose 13% last year,


most of the increase taking place after Donald Trump was elected as US


President. The billionaire businessman has


outlined an infrastructure That could give a boost to companies


in the US and across the world. With me is Francesca Lagerberg,


global leader for tax Looking ahead to 2017, the start of


a New Year is often a time for optimism, but looking to this year,


it is uncertain when the future is going, we have a new president in


the White House, not a lot of visibility of what he is going to


do, Brexit, European elections. What is putting up the confidence? It is


fascinating seeing businesses being optimistic, 38% positivity in the


businesses that we surveyed. There is something around knowing the


big-ticket issues of the year last year gave some uncertainty that


Donald Trump will be president, there will be Brexit, and even


though we don't know that Massa Nations, there is some certainty,


and businesses love certainty. 38% more confident about the future, so


that still leaves over 60% who are not, what are their concerns? Some


of the things coming through our around currency changes, around how


other things may pan out, in the Eurozone we have big elections in


France and Germany, different transatlantic agreement in Asia, had


overall was a divinity at 38% is very high. Over the last 20 years,


that is a very positive outlook. What businesses did you survey? And


how many of them? We looked at nearly 3000 businesses, over 37


economies, and they are mid-sized, the powerhouses of these economies,


so they are a good gauge of where business is looking. With the


businesses you survey it, but some a challenge for one is an up agility


for another, so they are coming at it from different angles. The big


economies, a huge rise in positivity, 54%, a massive increase,


over 11% increase, compare and contrast with Mexico, which is


looking north of the border at where change may be happening, and they


have gone down to 8%, so there are great cultural variances. But if you


are the big economies like the Eurozone, very positive in the big


countries there, they see the year as having more opportunities than


challenges. It is one thing for businesses to say they are


confident, but to do something about it, to invest for the future, how


many of them said they were going to? This is about perception and


optimism, but a lot say they will invest up our Andy will go up, --


research and of element will go up, and also investment in machinery.


People are saying they think that you will begin at, they think next


year and 2019 times when they need to invest today to make those years


a success. For the first time in more than 50


years, Sweden's bestselling car Instead, it was a Volkswagen


which topped the sales charts. The VW Golf made up 5.9% of new cars


bought in the country, while Volvo only had a 5.7% slice


of sales, spread The last time Volvo was not


in the top spot was 1962, when another Volkswagen,


the Beetle, headed the list. Singapore's economy just


recorded its best growth According to new government


data, GDP grew by 9.1% on a seasonally-adjusted annualised


basis, the fastest pace seen Buying a home Down Under just


got that much harder, with prices seeing the biggest jump


in seven years. The red-hot markets are Sydney


and Melbourne, fuelled by record low interest rates boosting


demand for mortgages. Annual growth in overall home prices


accelerated to 10.9%, from 9.3%. This is a concern for


the Australian central bank. It hoped the market would cool


after regulators slapped banks Australia and New Zealand Banking


Group, more commonly known as ANZ, is selling off its stake


in a Shanghai bank. How significant is this? It is very


significant. Currently ANZ have a 20% stake in the bank, but it is


selling it for $1.3 billion, and it is part of the bank's restructure,


to simplify its business, because all of Australia's major banks are


battling higher funding costs and lower interest margins. In October,


ANZ also announced a sale of its retail arms in five countries. As


for its Chinese assets, it will be bought by Chinese companies. Through


these deals, they are hoping to become better capitalised.


Happy New Year to you, have not seen you get this year.


Three out of four markets here have been closed since the end of last


year. No action in Japan today. And Wall Street will open later today.


Hong Kong up by nearly not .7%. We have a weaker dollar, it has gone


down slightly today against most major currencies, which was fuelling


movement in Asia today. All markets in Europe are open, but a few of


them were opened yesterday, but marginal trading scene yesterday,


but as many were still on a long bank holiday. In Europe, they are


all headed higher, and it is interesting, because the euro Stoxx


600 hit a ball market today, 20% up on its low end of February 2000 and


16. Joining us is Sue Noffke,


she's the UK Equities Fund Let's kick off with the London Stock


Exchange, wires have said they have agreed a sale, they have had a bit


for their French clearing business, which could help their tie-up with


the German stock market to go through. LCA Chiswick clearing part,


and the regulators have looked at the merger in the past between them,


and denied them the ability to go ahead. The sale of part of the


business, which removes some of the concentration risk, which regulators


are concerned about pricing and the concentration of power in clearing,


might make it easier for the merger between them to go ahead. In the


meantime, it would seem Europe is going from strength to strength, we


can see the numbers behind you. London is up, having closed at a


record high at the end of 2016. We are seeing quite a lot of market


optimism. It is around the sustainability of growth. The cycle


is quite extended, but has been muted. What we have seen


turbo-charged moss around Donald Trump does 's victory and what that


means for fiscal policy. That means taxation cuts, regulatory take being


torn up, spending on infrastructure projects, elongating the economic


cycle and getting away from these all trilan interest rate. What will


burst the bubble? Lots of things. That is what economists and


strategists are warning about. Instability in geopolitics, European


elections, China growth grinding to a halt, those are the types of


things that in the big picture people are worried about. More work


to do for you! We will talk interactive billboards


with one of the industry's leading players.


You're with Business Live from BBC News.


Here in the UK, rail passengers are facing higher


fares across the country, as average price increases of 2.3%


The increase covers regulated fares, including season tickets,


and unregulated, such as off-peak tickets.


It's being called a "kick in the teeth" for passengers.


Stephen Joseph is from the Campaign For Better Transport.


I issue that is your view? Yes, we think these extra increases are a


kick in the teeth for rail passengers, who have been facing


some very poor service in some cases, especially on the Southern


Rail network, which has been hit by long-term industrial action, but


also by generally poor service on the services into London from the


south coast. We have argued that what we need is a simpler, fairer


and cheaper system of rail fares. What we have is a complex structure


that has grown up over the years, it has been added to since the railways


were privatised, and we need to start again and have a much more


rational system. Somewhat argued the reason why fares have gone up so


soon can give for passengers is that the passengers are paying a larger


percentage of the bill for the railway, from 50% to 70%, and they


might say it is fair enough that the people who use the railways pay for


them. The point to make is that almost no other country in the world


takes that view. There is new research today showing that other


countries subsidise their railways and people pay significantly lower


proportions of their income on commuting, compared with people in


the UK. That is because there are wider benefits from having a good


and affordable rail network, including less congestion and


pollution on the roads. We have some of the most congested roads in the


world, as well as some of the highest rail fares. There has to be


a connection there somewhere. I would imagine many of you have a


view on that subject, the price of those coming up. Mine went up 20p.


It is good to know! Lots on our tablet, quite says that, UK housing


shortage, no policy shortage. Our top story today,


markets in the US, the UK and most of Asia have been open for the first


trading session of the year. Many would argue that perhaps we are


a little bit too over optimistic at the moment given some of the


political risk out there and geopolitical risk out there in the


New Year. That's how the markets in Europe are


trading right now. Most of them are open today.


And now let's get the inside track on the digital revolution


that's taking place in the world of advertising.


No longer is some poor soul required to scale a ladder with a brush


and pot of glue to paste a large sheet of paper on a billboard.


Many displays are now electronic and can adapt


their content to the viewer as he or she passes by.


Primesight is one of the largest "out of home" advertising firms


in the UK and Naren Patel, its chief executive is with us.


Welcome. Good morning. First of all, just explain to us this concept of


out of home advertising. Well, out of home is basically every ad that


you see when you're not in your house. So it is things on rail


stations, buses, airports, and on the roadside, underground. We kind


of, we spend three hours a day outside our home look looking at


billboards and that's the time you spend looking at these ads. Only 3%


of your billboards are digital, but that accounts for 20% of your


revenue. Surely that would mean you want to increase the number of


digital billboards you have to increase the revenue? Yes, but the


day of the man and the bucket and paste will always be there. We have


20,000 in total. So we will never digitalise them all, but we are


digitalising the best sites. We are about 20% of our revenues and the


industry is 35%, we think it will get to 50%, but it will stabilise


because we need the old traditional paper and paste because it gives us


cover every where. The same ad goes up in Slough and Derby and Edinburgh


at the same time and advertisers like that. They like the fame of


getting their ads up. You are a UK based organisation... Correct. You


mentioned the key cities in the UK. To what extent are we affected by


billboards? What evidence is there to say that looking at a billboard


will affect what I do with my money or what I do with my time? Well,


there is loads of evidence, but the key thing you have got to look at is


our advertiser base. So we our advertisers consist of the top


advertisers in the UK. Mainly media companies, all the big media


companies out out of home. They only use it because it works and there is


a tonne of evidence. If you want to check on the IPAO they provide lots


of it. And the way it works is, when you're out and about, you are more


active. You have an active mindset and that makes you absorb messages


and we did a bit of research last year really on, because the whole


thing around smartphones which is really interesting and we tracked


people's movements and we found that on the top 20 campaigns, their


search increased by up to 40%. So if that doesn't prove that outdoor


qorks, what does really? Where are you in the marred accounting spend


with your clients? If things get tough economically, are you lower


down in the pecking order when it comes to their marketing spend? Out


of home this year is the second fastest growing medium. I'm talking


about 2016. In terms of advertising? Of course, the internet is the


fastest, and we will be second and TV will be third. We are really


important and digital is what is really driving this. So we have gone


from a wonderful media, in a way you could get your posters, but across


the country to something that gives awe lot of flexibility. So if you


are, for example, a car advertiser, all the research says people think


about buying cars when they are diving home. Right. Now you can


serve your ads on digital billboards between 4pm and 7pm. That's


brilliant. It cuts down a lot of wastage, you are turbo charging it


with digital. There are lots of good examples of using data to drive


content on screens and that's what is getting the industry excited


about at home. I want to talk about targeted advertising. You mentioned


about targeting drivers orn the way home with ads for new cars because


that's when we think about it. It is harder on billboards than on smart


devices. How do you target it for the audience? I don't see Tom Cruise


and Minority Report happening soon. We don't use personalised data. We


pick up we buy a lot of data from smartphone networks, it gives us


travel patterns, it gives us ideas of which audiences are going where


and we load up our content it maximise that. So it is not about, I


know you, you are looking for ladders, so I am ale going to serve


awe ladder ad on a billboard. Thank you. Fascinating. It is, it is


fascinating. Let's cross over to the US now


because the Consumer Electronics Show is set to get underway


in Las Vegas later this week. Many people consider it to be


the biggest technology exhibition in the world and it's an annual


fixture for many of the giants The event is now entering its 50th


yearand it's fair to say it's a very different show from when it


all started back in 1967. The originalising is providing


education and entertainment at a very reasonable price.


It is phenomenal. It is a huge show. It was an event called the National


Association of Music Merchants and there was a portion, a tiny portion


of the show that said we'll let the consumer electronics portion be over


here and the guy who hired me said that's really unacceptable and he


convinced the board of this nonprofit trade association that


they should launch a show and they did in 1967 in New York called the


Consumer Electronics Show and it was successful for a launch. It had over


17,000 people. Had over 100,000 square feet, but it only had three


products, radios, TVs and photographs.


I do believe that the human touch, the live experience of being with a


real person is something that will not be replaced in 50 years and as


long as we will take honeymoons with our loved ones live, there will be


opportunities for business events like CES where you are physically


with other people and get to know them on a personal basis.


Sue is with us. The photograph of CES CES50 years ago, there was a


beautiful woman behind a desk doing the admin and all the delicates were


men in suits. Oh how things have changed! I wanted to make what


point! Sue Noffke, UK equity fund


manager at Schroders - We asked you to send in your tweets


about cake in the office. Some dentists have been saying we


shouldn't be bringing in sweet treats and we should break it now it


is January. Inside the studio and outside the studio there has been


response. We have an office tradition, it is your birthday, you


provide sweet treats. There is fruit. At your company? Yes, there


is fruit, but the cakes are the big hit. Absolutely. Who wants fruit on


a birthday? Sarah says, "Dentists hate joy."


Conor says, "My lemon drizzle cake is on its way in." James says, "Why


would dentists want to end this culture, it is good for their


business." Wendy says, "Why should only sugar make people happy. Cut


out cake and give them a Mediterranean snack." Here at 3am


and 4am, we have lots of cake. I will bring Rachel cake sometime this


week. Air about and about in the news, we were taug being it


yesterday because of new regulations in Paris, but the Financial Times is


looking at how its income in London could be curtailed? That's right.


There are new regulations and air about and B are self regulating as


well. So rather than pushing all the regulations on to the hosts, they


are taking responsibility for monitoring this new 90 day limit on


themselves which some other bookings companies are not doing. They are


leaving that responsibility with the host. Now, there is... I presume


that's after a lot of pressure. You don't want to take on new


responsibilities unless you have to. I think a lot of these newly listed


tech companies are finding that regulatory and the tax regular


lasses are going after them because they are cash rich and they are


successle and they are very big and there is a consumer backlash about


whether they are really paying their deuce. This is an interesting


response from the company stepping up and taking the responsibilities


and perhaps making sure that they are not caught by the European


Courts in the future. It started out just as a way to make a little bit


of cash on the side, but it is being used by professional landlords?


Absolutely. There is issues about how much that's really impacting the


economy. Sue, thank you very much for your company. Thank you too for


your company. We will you tomorrow. Join us then. Bye-bye.


Well, quite a frost across the south this morning. It was minus five


Celsius in Bournemouth. Glasgow, a different story, plus seven Celsius.


How about today? We have got


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