05/01/2017 BBC Business Live


05/01/2017

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This is Business Live from BBC News, with Sally Bundock

:00:00.:00:00.

Smart homes, voice recognition and driverless cars!

:00:00.:00:09.

We'll take a look at the rise of the robots at the world's

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Live from London, that's our top story on Thursday 5th January.

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The trillion dollar tech industry gathers in Las Vegas -

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in search of the gadgets that will get it growing again.

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Our top tech team is there, trying and testing out the latest stuff.

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Also in the programme - upsetting the Apple cart!

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Chinese authorities force the Silicon Valley giant

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The markets will be quite a mixed day, we are talking you through the

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winners and losers! Is that Rory with make-up on?

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We'll talk to the boss of a tech company hoping to revolution-ise

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We'll talk to the boss of a tech company hoping to revolutionise

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And keeping with all things tech - we want to hear from you.

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What are the gadgets that you can't live

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Let us know - use the hashtag BBCBizLive.

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I am predicting that for many of you you will be saying it is your

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smartphone but for me, it is my kettle, I cannot live without it!

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We start in Las Vegas where thousands of technology

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executives are gathering for the annual Consumer Electronics

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It's the most important event of the year for the tech industry -

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a chance for companies to show off the gadgets they hope

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It's a huge business - and an increasingly tough one.

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According to the Consumer Technology Association -

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which organises the Las Vegas show - we will buy gadgets worth close

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The problem is the industry as a whole is not growing.

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If it's accurate - that figure would be

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down around 2% on 2016, and it would be the fourth year

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Smartphones are by far the world's most popular gadget -

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accounting for half of all tech revenue - but sales

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Well - it could be the year of wearable technology -

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They have been saying it for a while now...

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Revenues from wearable devices are expected to soar

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almost a third this year - although still just a fraction

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And one of the biggest themes to watch - artificial intelligence -

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more and more gadgets are being given the ability to learn

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In a penthouse suite at a ritzy Las Vegas hotel,

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There is a smart speaker for children, each toy has a playlist.

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..There's even Nora, described as a smart snoring solution.

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It's paired with a pad under the pillow which detects the snoring

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and moves just enough to stop me, without waking me up.

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The big theme this year is turning the advances in artificial

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This one is meant to be a shop assistant, while this one

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is designed as a companion for children or elderly people.

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AI seems to get everywhere, even into this toothbrush, which learns

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Artificial intelligence is not just gathering the data,

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Then you learn where your weaknesses are, where your strengths

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are and the purpose is to become better at taking care

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This walking stick is also smarter than it looks.

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An in-built mobile phone SIM card means it can help

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It will detect the fall of the user and when it detects it it will alert

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the family or the neighbour, so they can come and

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And this clever mirror helps anyone to try out make-up.

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Out on the Las Vegas strip, this young entrepreneur

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His instant translation headphones aren't quite ready.

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They will eventually be tiny earbuds, that he is still

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This is important because we will be able to showcase what we've been

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working on to the world, to show this is something we started

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years ago as a small team, as a small start-up,

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The odds are against Danny, a one-man band taking on giants

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like Apple and Google, but he's betting that he

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has the product that can change the world.

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So, I was just trying to get Aaron to take on his most revolutionary

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gadget... I will be boring... You said the kettle? Yes! It's an easy

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one. It is boring, but the smartphone, I think it is a

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phenomenal thing. Boring, it is! You can go anywhere in the WorldCom is

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use GPS, go on Google maps, do that... -- go anywhere in the world

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and use... Chinese e-commerce giant Alibaba

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has sued two vendors for selling counterfeit goods,

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weeks after being blacklisted It's the first time the firm

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has taken legal action Alibaba sued the vendors

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for allegedly selling The move comes just two weeks

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after the company was put back onto the US's "notorious markets"

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list over failing to curb the sale Rex Tillerson - the former Exxon

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boss chosen by Donald Trump for US Secretary of State -

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will receive $180m to cut financial ties with the firm

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if he gets the job. The pay-out is aimed

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at addressing concerns he could favour the oil giant,

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or his own interests The 64-year-old Texan worked

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for Exxon Mobil for 40 years, including in the US,

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Yemen and Russia. Do you remember when we were talking

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about building the gig a factory? This is Elon Musk, and they are

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beginning production of the battery. We just had the numbers for Tesla

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yesterday, how time flies! The production of those cars right there

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increased to 68% last year, they are making more and more... It is

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interesting, not everyone is clear on what is going on inside of that

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monster sized giga factory. And some sun, making their new smartphone

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after all of those problems that it had with the last one that kept on

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going up -- Samsung. It is the device but you cannot live without

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though, the smartphone! But I do not want one that blows up!

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Apple has removed the New York Times app from its Chinese app

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store after a request from the Chinese authorities.

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She has got all of the details, it is nice to see you. This is

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interesting, isn't it? Indeed, good morning. This website has been

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blocked in China, if you remember, since 2012, after the newspaper

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published a number of reports about the private wealth of members of the

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political elite and their families but, as you say, the app had been

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available until late last year but Apple withdrew it after a request

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from Chinese authorities and the Chinese are looking at regulations

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designed to curb activities such as "Endangering national security,

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disrupting social order and violating legitimate rights in the

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interest of others" at the newspaper, they responded with

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criticism of apps from other organisations, saying that apps like

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the BBC are still available, but the English version occasionally has

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human rights or political stories blocked on the website and on the

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app. Legs we will talk about that later

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in the programme. Looking at the New York Times article on that

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particular story -- thank you. Asia had a mixed day, profit in Japan,

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they have had a surge in Asia in general, the Yen gained in value.

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Exporters losing some ground as the Yen strengthened. In other markets,

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Hong Kong up 1.5%, Europe is quite mixed at the moment. And, a lot of

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what is going on in the markets today, Europe and Asia, is in

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reaction to the Federal reserve, minutes were out late yesterday. We

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will speak in more detail about that in a moment but today on Wall

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Street... And Samira Hussain has

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the details about what's ahead The weaker pound will

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likely hurt the earnings But the focus will really be

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on Walgreens' acquisition Now, multibillion-dollar deals,

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particularly in health care, have been facing more scrutiny

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from US anti-trust authorities recently, with many being scrapped

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or undergoing lengthy approval processes because of a fear

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of creating a monopoly. But an agreement to sell 865

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Walgreens store is is being seen as a positive sign for the merger

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which is expected to Now, craft whiskey and beer has

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been bringing some cheer The alcoholic beverage maker

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is raising their full-year profit expectations because of a healthy

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demand for its Corona and Modelo beers, and expanding its premium

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liquor portfolios is also given We are all sitting here talking

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about gadgets, David, what is yours, a gadget that has changed your life

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or that you love? IPhone, I'm boring like you, sorry! Come on YouTube,

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something more imaginative? The dishwasher, whoever invented that!

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-- come on you two. Happy New Year, David. It is nice to see you. Let's

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talk about this... The front page of the pink pages... The Fed... No, the

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Financial Times! The minutes coming out of the Fed yesterday, state --

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statements towards Donald Trump's policy. We need to remember that

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Janet Yellen in the chairman and Federal reserve in total isolation

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of her job, forget what is happening with Barack Obama and Donald Trump

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in the future... She is looking at the big picture all the time, we got

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our last quarter percent increase recently, and what she has set out

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of the Trump plans, that is basically to cut corporation tax

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from 35% down to 15% in two years. And, to introduce $1 trillion worth

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of spending around various parts of the country. This, basically, is

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good but it is inflationary. If you look at the futures, they can be

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misleading, but the market is telling us that in 2017 there will

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be a 0.59% increase in US interest rates, you will get to quarter

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heights anyway and do not rule out the possibility of a third if all is

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well when Donald Trump is installed as a president of the United States.

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We have had a lot of rhetoric. If we hear positive stuff which gets

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through Congress, great news, the markets will crack on but if we hear

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other stuff that we do not want to hear, like problems with China and

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those real trading bases, then you have an issue. I hope we don't. But,

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watch this space... David is back in five minutes, not off the hook yet,

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he has more work to do on the programme! Thank you. Pleasure.

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We'll talk to the boss of a tech company hoping to revolutionise

:13:36.:13:40.

You're with Business Live from BBC News.

:13:41.:13:46.

Four months after facing a investor revolt -

:13:47.:13:50.

Sports Direct looks set to have another battle today.

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Later today, shareholders will be voting on whether chairman

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Keith Hellawell should keep his seat on the board.

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Theo Leggett is in our Business Newsroom.

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It's good to see you, my friend. How important is this vote? Seriously,

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let's be frank, are there real prospect here that he could lose the

:14:11.:14:17.

job? Only if he decides to, the vote that we are having today is a result

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of Keith Halliwell losing the vote on his reappointment to the annual

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general meeting in September but under new rules designed to give a

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bit more say to independent shareholders and companies dominated

:14:30.:14:33.

by one major shareholder, in this case, Mike Ashley, you can have a

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vote and if it is lost, then there has to be another a few months down

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the line but the difference this time, Mike Ashley is involved in it

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and since he has a 55% stake in the company, unless he decides Keith

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Halliwell has to go, then he is probably staying onwards. The only

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difference that might be made is if Mr Halliwell himself decides there

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is too much opposition and he cannot do his job, he may decide to step

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down. He has already offered to resign but was persuaded by Mike

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Ashley to stay on but in the general meeting this year, if he loses the

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vote then, he would step down anyway but at the moment, it seems he will

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stay in his post. Shareholders will show they are annoyed with the way

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that the company is being wrong but -- run but really they do not have

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much influence. For the shareholders, you assume that it is

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incredibly frustrating because Sports Direct has so much going on

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and no good news None at all. For the past 18 months

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Sports Direct has been under pressure following media revelations

:15:37.:15:40.

about working conditions at its main warehouse in Sharnbrook in

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Derbyshire. MPs took on board what was going on there and issued a

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scathing criticism of the company and said it had Victorian style

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working conditions. Now, Mike Ashley did say he would work on this and

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try and sort things out. What has happened as we have seen the Chief

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Executive leave leaving even more control in the hands of the leading

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shareholder Mike Ashley which is what institutional shareholders

:16:04.:16:07.

don't want to see. The plot thickens. Thank you, Theo, from our

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business unit. Are you nice to your parents?

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I try to be. You better be, they are watching.

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We will get some money from them one day and we will be wealthy.

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You're watching Business Live - our top story.

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The biggest names in tech are in Las Vegas for

:16:26.:16:27.

It is the Consumer Electronics Show, it comes around again.

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It has, another year. It is... Arguably... Arguably... Arguably?

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It's arguably the biggest event on the tech calendar and we've

:16:47.:16:48.

already seen one start-up unveil what it claims to be the world's

:16:49.:16:51.

Yes, we'll keep you up to date with the latest from CES,

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both here and on the BBC News website.

:16:59.:17:01.

Dave Lee is there, loads of people are there. Arguably there is loads

:17:02.:17:08.

of people. CHUCKLES

:17:09.:17:11.

This morning we're getting the Inside Track on one company

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which is taking on the titans in the world of foreign exchange.

:17:15.:17:17.

When it began operations in Dublin seven years ago,

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Currency Fair was the world's first peer-to-peer currency exchange.

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And since then almost $4.5 billion-worth of currency has been

:17:25.:17:27.

exchanged on its site - that's around ?3.6 billion.

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Well, users log on to the website or smartphone app, and it then

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connects buyers and sellers of different currencies.

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Users can also set their own exchange rate, but the model relies

:17:38.:17:40.

on people being willing to trade with each other.

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The company claims that by cutting out the middleman,

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it makes it cheaper and faster to exchange money than other

:17:51.:17:53.

Brett Meyers, its co-founder and Chief Strategy Officer is here.

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Can I ask this question beforehand? Are you a tech company or a finance

:18:09.:18:15.

company? If I had to pick I would say finance because we deal with

:18:16.:18:19.

people's money, security compliance is hugely important but we are a

:18:20.:18:23.

finance company enabled by some unique technology. You have

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relatives in South Africa and I am an Australian. For the dummies here,

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I want to see how this works, I want South African Rand and I'm in

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Australia and I log on and Sally is in South Africa and she has rammed

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that she can sell me. And die by the Rand? You would never buy the

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currency yourselves, it is depersonalised there is no risk of

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the other person not paying or not having the funds. That is high risk

:18:55.:18:58.

with Aaron and I. There is always issues! This is a company which was

:18:59.:19:04.

started when? We started in 2009 working full-time and launched in

:19:05.:19:09.

2010. That is quite key, isn't it? In the last couple of years there

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has been a lot of financial companies starting. Thin tech has

:19:13.:19:17.

really taken off. Is the fact you were around then what important

:19:18.:19:21.

because there is a lot of competition now? It is important

:19:22.:19:27.

from the sense it takes time to build trust. The fact we have been

:19:28.:19:31.

around for six or seven years means people can research. There were not

:19:32.:19:36.

that many others around at the time. Transfer Wise went around then and

:19:37.:19:40.

many of your main competitors didn't exist. Banks did and they are our

:19:41.:19:45.

main competitor. If you added together all of the transaction is

:19:46.:19:50.

being done by the new Currency Fair FinTech firms it is a small piece of

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the pie, we are bringing up the sector rather than challenging each

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other. Can you briefly explain this? You were the CEO of the company and

:20:01.:20:05.

you are now chief strategy officer. You gave yourself aid E-Motion,

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didn't you? That's not the way I look at it. But effectively we got

:20:10.:20:15.

the point, I think, where we got to the point where scale was the most

:20:16.:20:19.

important thing, this was my first CEO role and I can certainly learn

:20:20.:20:22.

how to do that but I thought what is the best way to get this company big

:20:23.:20:28.

as soon as possible. Put a proper CEO in? And you focused on what you

:20:29.:20:32.

wanted to do. Exactly, I'm able to look at the markets and where we

:20:33.:20:35.

want to be in the next couple of years so it is a win- win for the

:20:36.:20:40.

company. For the viewers' perspective on this, talking about

:20:41.:20:43.

money changing hands and currencies but you are talking about big sums,

:20:44.:20:47.

it is not I want to go on holiday to South Africa and I want a couple of

:20:48.:20:51.

hundred around. It could be, couldn't it? It is not small

:20:52.:20:56.

amounts, you're talking about big amounts? The average is about 5000

:20:57.:21:03.

euros, ?4500. But we do do some smaller stuff. But where our unique

:21:04.:21:07.

value kicks in is when the transaction is a bit larger and

:21:08.:21:10.

people stop thinking about it as a payment and more of a personal

:21:11.:21:14.

finance decision. I've saved up money in Australia, I'm coming home

:21:15.:21:18.

to the UK, you're not thinking what is the quickest, fastest, easiest

:21:19.:21:22.

way to get that back. Your commission on the movement is much

:21:23.:21:28.

less than a high street bank. On average we pay about a third of a

:21:29.:21:33.

percent. There is some criticism about the model, that there is some

:21:34.:21:37.

bold durability, for example, with Brexit. Where there are lots of

:21:38.:21:42.

peer-to-peer sites that had to stop trading because it was Ravitch, the

:21:43.:21:45.

volatility of the pound, for example. We stayed open during

:21:46.:21:53.

Brexit which was a big validation of our model because we operate a real

:21:54.:21:56.

exchange where we allow people to choose to wait for a rate that suits

:21:57.:22:00.

them, or exchange immediately. Because of that we allow a market to

:22:01.:22:04.

build upon both sides and that was able to handle the volatility really

:22:05.:22:09.

well. With so many companies like you was around, these online FinTech

:22:10.:22:16.

companies, how does the user finds those that are reliable, because

:22:17.:22:21.

it's about trust and there is a real worry about these smaller companies

:22:22.:22:26.

not being able to follow through with financial commitments? Exactly

:22:27.:22:32.

and you see this not just in foreign transfers but lots of areas of

:22:33.:22:37.

Fintech and it is not certain whether they are subsidising to

:22:38.:22:42.

build up a user base or whether they are cheaper. Both are true so

:22:43.:22:45.

consumers need to do their research and the fact we have been around a

:22:46.:22:48.

long time of the weather model works is a good test. We appreciate your

:22:49.:22:51.

time, thank you for coming on. In a moment we will look at the

:22:52.:22:59.

Apple story again and the New York Times. Here is how to stay in touch.

:23:00.:23:04.

The business life page is where you can stay ahead with all of the day's

:23:05.:23:09.

breaking business news. We will keep you up-to-date with the latest

:23:10.:23:12.

details with insight and analysis from the BBC's team of news and

:23:13.:23:16.

editors around the world. We also want to hear from you. Get involved

:23:17.:23:22.

on the BBC Business Live web page at BBC. Comports slash business. We are

:23:23.:23:27.

at BBC business on Twitter and we are on Facebook and BBC business

:23:28.:23:34.

news. Business live on TV and online whenever you need to know.

:23:35.:23:38.

Dave is back as promised. Let's start with this story about Apple.

:23:39.:23:45.

There was one time not long ago when Apple were selling more smartphones

:23:46.:23:50.

in China than the US and the story highlights how important the Chinese

:23:51.:23:54.

consumer is to Apple. The company used end point is don't mess with

:23:55.:24:03.

these people. The remains that Apple have taken this app from the Chinese

:24:04.:24:09.

and English language perspective from the App Store, to make sure

:24:10.:24:11.

they still have control over the media. What the capitalist system

:24:12.:24:17.

that works so brilliantly in the Communist regime, they don't want it

:24:18.:24:21.

messed up and Apple know the rules. It's the same way when Rupert

:24:22.:24:25.

Murdoch had issues over there, it takes time to learn rules with the

:24:26.:24:29.

Chinese but if you want to play in their ballpark it is what you must

:24:30.:24:33.

do. This article is the New York Times reporting on itself and what

:24:34.:24:38.

is going on with Apple. Apple's view is a very generic view. I can't

:24:39.:24:42.

really say what they really think, whereas the New York Times is no

:24:43.:24:45.

holds barred, it is just censorship of the media as far as they are

:24:46.:24:49.

concerned. Absolutely, want to play by the rules that is what you have

:24:50.:24:55.

to do with China. Let's talk about viewers' gadgets.

:24:56.:24:57.

I want to talk about the Australian company that made more than 2000

:24:58.:25:06.

times return on its investment. The ice-making machine. I love my

:25:07.:25:10.

ice-making machine. I have one of those American fridges at home. In a

:25:11.:25:15.

hot country. We might be moving soon and I can't take it with me. I want

:25:16.:25:22.

the thingy. Colin says it is his laptop. I imagine lots of people

:25:23.:25:25.

would say that, more powerful than a mobile and more mobile than a PC. At

:25:26.:25:30.

the other walked out and left your iPad at home and felt like you have

:25:31.:25:35.

left your right arm? I have gone back for it, it is not even a

:25:36.:25:39.

discussion. When you get to my age, trust me, it happens quite often. I

:25:40.:25:44.

am getting there. David, so nice to see you, thank you

:25:45.:25:48.

for coming in, and have a wonderful New Year.

:25:49.:25:53.

Have a really good day whatever you are up to, whatever device you can't

:25:54.:25:58.

live without. Enjoy. Seat you later, goodbye.

:25:59.:26:00.

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