:00:00. > :00:00.This is Business Live from BBC News with Sally Bundock
:00:00. > :00:16.fears grow as some leading firms warn thousands of staff may now be
:00:17. > :00:21.biggest banks tells the BBC London will remain
:00:22. > :00:25.Live from London, that's our top story on Thursday
:00:26. > :00:50.Brexit by Theresa may lead to london losing it's financial crown jewels?
:00:51. > :00:56.The boss of Barclays tells us what he thinks.
:00:57. > :01:07.Also in the programme, some breathing space for now, no arrest
:01:08. > :01:12.warrant for the Samsung boss Jay Y Lee. Prosecutors vowed to continue
:01:13. > :01:13.the corruption investigation without wavering. We will have the latest
:01:14. > :01:17.from Seoul. And for now European markets
:01:18. > :01:19.are all headed higher - Theresa May is speaking in Davos
:01:20. > :01:22.in less than an hour and so we are watching
:01:23. > :01:26.the pound sterling. We are also going to be getting the
:01:27. > :01:37.inside track on the winners and losers. Also, streaming service net
:01:38. > :01:43.flicks reported a huge boost in subscriber numbers, they put it down
:01:44. > :01:51.to their original conflict, it is a little bit like Netflix and
:01:52. > :01:57.chilling. Do the streaming services make your much watch shows? Do get
:01:58. > :02:08.in touch, use the hashtag. Do get in touch with your comments,
:02:09. > :02:09.not just about Netflix but about our other stories. We love to hear from
:02:10. > :02:11.you. We start here in London -
:02:12. > :02:14.where fears of a costly Brexit Some leading firms are now
:02:15. > :02:18.weighing up moving thousands of staff out of the UK -
:02:19. > :02:30.after Prime Minister Theresa May confirmed plans to leave
:02:31. > :02:32.the European Single Market as well as the EU -
:02:33. > :02:35.the so called 'hard Brexit' option. The British Leader is addressing
:02:36. > :02:37.the world economic forum in Davos in the next hour -
:02:38. > :02:40.she will also be meeting the bosses of some of the big banks including
:02:41. > :02:43.Goldman Sachs and JP Morgan On Wednesday the boss of HSBC said
:02:44. > :02:48.he's preparing to move around 1000 That would mean around 20%
:02:49. > :02:55.of its European revenue leaving the UK, worth
:02:56. > :02:59.several billion dollars. Swiss rival UBS also told the BBC
:03:00. > :03:02.that 1000 jobs may go in London as a result of Brexit,
:03:03. > :03:05.again around a fifth And according to a report
:03:06. > :03:14.in the German newspaper Goldman Sachs may halve
:03:15. > :03:24.its London workforce, moving 3000 staff to New York
:03:25. > :03:33.and continental Europe, But when pressed on the matter by
:03:34. > :03:35.another news agency, Goldman Sachs said it has yet to make a firm
:03:36. > :03:40.decision. Our business editor Simon Jack
:03:41. > :03:43.is in Davos where he's been speaking to the Chief executive of Barclays,
:03:44. > :04:01.Jes Staley. Jes Staley has been singing the
:04:02. > :04:07.praises of Londoners, but I wonder if that comes as any surprise? All
:04:08. > :04:11.banks have been looking at contingency plans, and as you said,
:04:12. > :04:16.HSBC have triggered theirs, they said we always said we would move a
:04:17. > :04:21.thousand people if we were to leave the single market, and that is
:04:22. > :04:25.exactly what we are going to do. But a lot better news for Theresa May
:04:26. > :04:34.from the boss of Barclays. He told us what he thought about the future
:04:35. > :04:37.of London as a financial centre. As I said before, I don't believe that
:04:38. > :04:44.financial centre will leave the city of. I think the UK will continue to
:04:45. > :04:49.be the financial longs for Europe. We may have to move certain
:04:50. > :04:52.activities, we may have to change the legal structure that we use to
:04:53. > :04:58.operate in Europe, but I think it is going to be at the margin, and will
:04:59. > :05:04.be manageable. You have a banking licence in Dublin and a big business
:05:05. > :05:07.in the US. Is it a sensible conclusion to make that some of
:05:08. > :05:14.those activities might go either to New York or Dublin? We have a bank
:05:15. > :05:17.subsidiary in Ireland, which is part of the EU, and the largest credit
:05:18. > :05:23.card operation in Germany, so we have quite a presence in Germany,
:05:24. > :05:26.and we have an office in France. We are the largest underwriter of
:05:27. > :05:31.European sovereign debt, so when European Union countries issue their
:05:32. > :05:36.own debt, the largest bank underwriter in the world is
:05:37. > :05:41.Barclays, so they will want us to staying gauged, we will want to stay
:05:42. > :05:45.gauge. Whether we will have to root some activities through Ireland do
:05:46. > :05:50.something in Germany, those are the we are looking at. But the bulk of
:05:51. > :05:57.what we do will continue to occur in London, in my view. Having been
:05:58. > :06:00.pariahs in many areas, bankers, do you find people are now rolling out
:06:01. > :06:06.the red carpet? It is interesting that it wasn't too long ago that no
:06:07. > :06:09.one quite wanted a banker in their backyard, and all of a sudden we are
:06:10. > :06:20.being invited over for the barbecue! Interesting stuff! Staying with the
:06:21. > :06:23.banks, Theresa May speaking today, but she is obviously going to be
:06:24. > :06:30.keen to speak to the big bosses of the banks. That's right. She will be
:06:31. > :06:37.meeting with bosses, the chief executive of Goldman Sachs, Larry
:06:38. > :06:41.Fink, the boss of Blackrock. These are card-carrying members of the
:06:42. > :06:45.global elite that she has been so scathing about, so that will be an
:06:46. > :06:48.interesting meeting. She will be trying to reassure them, we may be
:06:49. > :06:51.leaving the single market but we want the best possible access to the
:06:52. > :06:56.single market, we will fight for access to the financial services arm
:06:57. > :07:02.to get good access to Europe, and as you just heard Jes Staley say,
:07:03. > :07:05.Barclays is the biggest underwriter of European bonds in the world,
:07:06. > :07:09.European governments rely on London to do some of the business, so a lot
:07:10. > :07:14.of people thinking it would be anyone's interest on either side for
:07:15. > :07:18.those services to be disrupted. London is the wholesale bank for the
:07:19. > :07:25.rest of Europe. If your bank close down and you couldn't get to it, it
:07:26. > :07:31.would affect your life quite a lot, and that is what people are banking
:07:32. > :07:37.on. She's probably limbering up right now for her speech which is in
:07:38. > :07:43.35 or 40 minutes. What sort of reception do you think she will get?
:07:44. > :07:50.I think she will get a fairly cool reception. She will get everyone's
:07:51. > :07:53.attention, people will know what she means, why she wants to leave the
:07:54. > :07:59.single market, what deal she is after, but I think the political
:08:00. > :08:04.reality is that at some point, the other 27 countries have to believe
:08:05. > :08:09.that this is a club that it is better off being in that out. We
:08:10. > :08:14.heard the German minister saying that whatever deal gets done, it
:08:15. > :08:17.must be inferior to membership. She will get an interested audience who
:08:18. > :08:22.will say, how can you pull this off, and what exactly is it that you
:08:23. > :08:26.want? She spells out, we want the best possible access, you are our
:08:27. > :08:29.friends and partners, we may be leaving the European Union but we
:08:30. > :08:39.are not leaving Europe. Thank you, Simon. I understand it is minus 20.
:08:40. > :08:40.You look cold! It is quite cold. You are doing very well despite the
:08:41. > :08:47.challenges. See you soon. Nice and warm in here!
:08:48. > :08:51.Limbering up. As soon as you said that, I am imagining her... Theresa
:08:52. > :08:57.May in her hotel room getting ready, pacing the floor. OK, Sally! Let's
:08:58. > :09:02.touch on some of the other stories making headlines around the world.
:09:03. > :09:05.Renegotiating the Nafta trade deal with Canada and Mexico is the Trump
:09:06. > :09:07.administration's top trade priority - according to commerce secretary
:09:08. > :09:10.He was speaking to US senators at a confirmation
:09:11. > :09:14.Mr Ross said China was the "most protectionist" country
:09:15. > :09:17.among large economies - but said Nafta is "logically...
:09:18. > :09:22.the first thing for us to deal with"
:09:23. > :09:25.Shares in TV streaming service Netflix soared as much as 9%
:09:26. > :09:27.on the news it is growing much faster than expected.
:09:28. > :09:30.Netflix added just over 7 million new subscribers in the last
:09:31. > :09:33.three months of 2016 - a third more than forecast -
:09:34. > :09:38.and expects to break the 100 million mark by the end of March.
:09:39. > :09:40.Netflix has invested heavily in original content whilst ending
:09:41. > :09:48.deals with top studios - a gamble that is paying off.
:09:49. > :09:51.Shares of Cathay Pacific have fallen sharply after the Hong Kong based
:09:52. > :09:54.airline said it would restructure and cut jobs - in the face
:09:55. > :09:58.of what it calls "huge pressure on our business".
:09:59. > :10:02.Cathay is facing the rise of low cost carriers in Asia -
:10:03. > :10:05.as well as expansion by its premium rivals - and uncertainty
:10:06. > :10:09.Investors though are concerned by a lack of detail
:10:10. > :10:10.about the restructuring, which Cathay describes
:10:11. > :10:25.I'm glad you mentioned that, the reasons why the shares were down,
:10:26. > :10:31.because normally when a countries as we are cutting jobs, shares go up.
:10:32. > :10:35.They have been hit very hard. They are in a bad way. Very good airline,
:10:36. > :10:39.though. The other big story coming out of Asia today:
:10:40. > :10:45.A court in South Korea has rejected a request for an arrest warrant
:10:46. > :10:48.of the defacto boss of Samsung Jay Y Lee.
:10:49. > :10:50.Kevin Kim is in Seoul with the latest
:10:51. > :11:03.The last 24 hours may have been one of the longest and dramatic for Jay
:11:04. > :11:07.Y Lee. At the city jail, the head of South Korea's biggest company waited
:11:08. > :11:11.through the night until the court came to a decision to release him.
:11:12. > :11:14.Early in the morning, the judge said there wasn't sufficient reason to
:11:15. > :11:19.put him behind bars, and he was then seen walking out of jail with a
:11:20. > :11:25.slight smile, and apparently then he went straight to work. The message
:11:26. > :11:29.Jay Y Lee wants to send me be business as usual, but this may not
:11:30. > :11:33.be the and of the problems for the chief of Samsung. The company has
:11:34. > :11:38.been accused of bribery, and he may still need to face a trial if
:11:39. > :11:41.prosecutors press charges. Samsung has continuously denied the
:11:42. > :11:47.allegations of bribery, and their position is that contributions have
:11:48. > :11:52.been made, but it wasn't in order to receive favours. Bribery is not an
:11:53. > :11:57.easy crime to prove under Korean law. Neither has it been easy
:11:58. > :12:06.putting rich family members of conglomerates in jails for
:12:07. > :12:11.wrongdoing. In previous years, despite accusations, no Samsung
:12:12. > :12:14.member has served jail time, only suspended sentences, and for the
:12:15. > :12:18.time being, Jay Y Lee will not be the first was white
:12:19. > :12:22.just for the time being, we will be keeping an eye on that. In terms of
:12:23. > :12:27.markets today, it was a mixed picture.
:12:28. > :12:36.We had Janet Yellen speaking yesterday, the head of the Federal
:12:37. > :12:44.reserve. Everybody pricing in, maybe not pricing in but thinking we could
:12:45. > :12:47.see a rise in the interest rates in the US by March of this year. That
:12:48. > :12:53.has caused the dollar to move, and we have a weaker yen, which is
:12:54. > :12:56.caused a flurry of activity to write a whole week. In terms of Europe, it
:12:57. > :13:00.is a pretty mixed picture,. And Michelle Fleury has
:13:01. > :13:08.the details about what's ahead Yesterday we got a glimpse of the
:13:09. > :13:11.health of big banks, when Goldman Sachs reported strong profits.
:13:12. > :13:15.financial sector since the election financial sector since the election
:13:16. > :13:17.of Donald Trump, a view that was reinforced after the investment
:13:18. > :13:22.banking giant gave an up week forecast for 2017. Will the halo
:13:23. > :13:27.effect extend to credit card company American Express? It reports its
:13:28. > :13:31.fourth-quarter results later this Thursday, and watch out for earnings
:13:32. > :13:37.from regional bank bank of New York Mellon. Investors will also hear
:13:38. > :13:41.from the largest technology services company, IBM, which is scheduled to
:13:42. > :13:46.turn in its fourth-quarter results later in the day. Its cloud and data
:13:47. > :13:51.analytics businesses are expected to continue to drive revenue growth. On
:13:52. > :13:54.the economic front, a report from the commerce Department is expected
:13:55. > :13:57.to show that housing starts rose in December from the previous month.
:13:58. > :14:00.Good on you, Michelle. Joining us is Simon Derrick,
:14:01. > :14:08.Chief Markets Strategist, This is interesting what is going on
:14:09. > :14:11.at the moment, because you have the big boss of the American central
:14:12. > :14:16.bank, the Federal reserve, Janet Yellen, she speaks and the dollar
:14:17. > :14:22.goes up! Galette before, Trump speaks, he is trying to bring the
:14:23. > :14:28.dollar down! We certainly started the year with a bang rather than a
:14:29. > :14:31.whimper. You are absolutely right, the really interesting story that
:14:32. > :14:37.could be building here is the difference on topic with regard to
:14:38. > :14:41.the dollar. We have a Donald Trump that over the course of the last 12
:14:42. > :14:46.months in one form or another have said he isn't particularly keen on
:14:47. > :14:49.having a strong dollar because that undermines US exports and producers.
:14:50. > :14:52.On the other hand, you have Janet Yellen saying she is talking about
:14:53. > :14:56.hiking rates three times this year and again next year, which is
:14:57. > :15:02.bullish for the dollar, so who will win this particular battle? A tough
:15:03. > :15:04.call? A couple of places are still available on the Federal reserve
:15:05. > :15:13.board, people who vote on interest rates, that might be key. . Sorry we
:15:14. > :15:16.are being cut already, but you are going to come back and do the
:15:17. > :15:19.papers. We will talk to you very soon. Still to come:
:15:20. > :15:21.We get the inside track on globalisation -
:15:22. > :15:25.are its critics right that it is a recipe for inequality
:15:26. > :15:30.or the best way we have to lift people of poverty.
:15:31. > :15:47.You're with Business Live from BBC News.
:15:48. > :15:55.Moneysupermarket's twerking businessman in high heels
:15:56. > :15:59.and Paddy Power's cat-kicking blind footballers were some of the
:16:00. > :16:06.All of the top had complaints about offensiveness,
:16:07. > :16:08.but the advertising standards authority said that none
:16:09. > :16:14.Guy Parker is the chief executive of the ASA and he joins us now.
:16:15. > :16:22.I have got to say, the commercial, the man with the big bottom,
:16:23. > :16:30.twerking, it gets me. Interesting, some of the ads that attract the
:16:31. > :16:34.largest number of complaints are not the ones we need to ban, we did not
:16:35. > :16:39.ban any of the top ten last year, despite the fact that we took action
:16:40. > :16:42.against thousands of ads, mostly for being misleading but not one
:16:43. > :16:47.misleading ad in the top ten last year. So which ones did you take
:16:48. > :16:52.action against? Well, numerous ads, 70% of the complaints that the UK
:16:53. > :16:58.public make to us are about misleading advertising, and the
:16:59. > :17:02.typical stuff is unclear pricing, conditions that are not clear enough
:17:03. > :17:05.or are a bit hidden, surcharges that appear late in the day, exaggerated
:17:06. > :17:09.products and services, that is the meat and drink of what we do. It is
:17:10. > :17:14.really important that we look carefully at the complaints that we
:17:15. > :17:17.receive that ads are likely to cause serious and widespread offence but
:17:18. > :17:21.it is not enough that they are just this taste. White you say you take
:17:22. > :17:27.action, what action, what does that involve? -- you say that you take
:17:28. > :17:31.action. The ad is amended or withdrawn. In terms of those that
:17:32. > :17:35.have got all of our attention, those that we complain about the most,
:17:36. > :17:40.presumably the most effective? I don't know, I do know that nine out
:17:41. > :17:44.of ten of last year's top ten were television ads, half of the
:17:45. > :17:47.regulation we deliver at the moment is against advertising online,
:17:48. > :17:50.particularly companies own claims on their own websites and social media
:17:51. > :17:56.spaces, but it is still the television ads, that attract the
:17:57. > :18:00.highest numbers of complaints, ten out of ten of 2015's top ten. Thank
:18:01. > :18:02.you very much for your time, fascinating stuff, we all know the
:18:03. > :18:13.ad. People are not spoiling their pets,
:18:14. > :18:25.it seems, just a slight rise. You're watching Business
:18:26. > :18:27.Live, our top story, the Chief Executive of Barclays,
:18:28. > :18:30.Jes Staley, has told BBC News that he doesn't think Brexit
:18:31. > :18:32.will change London's position He said there might
:18:33. > :18:35.need to be changes to how the bank worked,
:18:36. > :18:37.with business routed through the Republic
:18:38. > :18:39.of Ireland or Germany but the bulk of what Barclays did
:18:40. > :18:53.would continue to be in the UK. There was a time when the people who
:18:54. > :19:04.ran the world economy is considered globalisation as a good thing.
:19:05. > :19:05.However critics say its a recipe for inequality.
:19:06. > :19:08.Since 2015, the richest 1% has owned more wealth
:19:09. > :19:11.Over the next 20 years, 500 people will hand over
:19:12. > :19:14.$2.1 trillion to their heirs, which is roughly the GDP of India.
:19:15. > :19:18.The boss of a FTSE 100 company earns as much in a year as 10,000
:19:19. > :19:24.people working in garment factories in Bangladesh.
:19:25. > :19:39.Sir Angus Deaton, Economist and Nobel prize winner, is in Davos.
:19:40. > :19:47.Great to have you on the programme, earlier this week, Oxfam came out
:19:48. > :19:52.and said, they said the top eight richest people Eion Morgan 3.6
:19:53. > :19:56.billion of the poorest on the planet, and in fact they said this
:19:57. > :20:04.whole wealth gap divide is worse than they originally thought. I am
:20:05. > :20:11.not sure I believe the numbers. OK, do you disagree with that? I think I
:20:12. > :20:16.do, I haven't had time to study it in detail but I am not sure they
:20:17. > :20:20.have done the corrections problem, and some of those people that they
:20:21. > :20:24.are portraying with are major philanthropists, like Bill Gates, I
:20:25. > :20:28.don't know how Bill Gates having so much money is bad for the world. I
:20:29. > :20:32.don't believe Oxfam was portraying them as villains, they were trying
:20:33. > :20:36.to illustrate a point, the point they were trying to make this time
:20:37. > :20:40.last year, that a huge amount of wealth is in the hands of it all
:20:41. > :20:47.proportion. The issue of inequality does not seem to be being resolved.
:20:48. > :20:53.What is your view on solving this problem, which is one that is
:20:54. > :20:56.getting worse, not better? I think you have to be very careful to
:20:57. > :21:00.distinguish how it is that people got that money, many of those
:21:01. > :21:02.people, like Bill Gates, Mark Zuckerberg, became very rich by
:21:03. > :21:09.doing things that helped everybody in the world. There are other
:21:10. > :21:11.people, who got very rich by getting special favours from government
:21:12. > :21:19.which hurt other people, and I don't think it is helpful to see
:21:20. > :21:27.inequality as a blanket figure. Carlos Slim, for example, perhaps
:21:28. > :21:31.got that money through special favours. INAUDIBLE QUESTION
:21:32. > :21:34.We need to make sure that people do not get rich by stealing from other
:21:35. > :21:39.people, by getting special favours from the government and what we like
:21:40. > :21:42.to call rent seeking, and that is what we have got to stamp out. We
:21:43. > :21:48.also need a much better democratic system than we have, and then the
:21:49. > :21:53.inequality problem, as you call it, would look after itself. How do you
:21:54. > :21:56.raise the wealth, we mentioned earlier, 3.6 billion of the poorest
:21:57. > :22:05.around the world, have you raise their wealth? They have been doing
:22:06. > :22:09.extremely well, actually, the decrease in poverty over the last
:22:10. > :22:15.ten years, the last 30 years, is one of the greatest achievements of
:22:16. > :22:18.mankind, and it has come through much maligned globalisation, so I
:22:19. > :22:23.don't understand that particular part of the issue. You are at Davos,
:22:24. > :22:30.do you think, every year, the great and the good gather there are, do we
:22:31. > :22:34.get anything from it, from the gathering you are at right now? I'm
:22:35. > :22:41.sorry, I did not hear anything you said. Does Davos achieve anything? I
:22:42. > :22:46.don't know, this is the first time I have been here, it is a very
:22:47. > :22:52.strange, very fragmented sort of event. With people who are clearly
:22:53. > :22:57.here for very different purposes. From your point of view, we have the
:22:58. > :23:01.inauguration of Donald Trump, to become the next US president, what
:23:02. > :23:08.do you think he will do in terms of helping or hindering inequality? I
:23:09. > :23:12.think it is very difficult to know what Trump is going to do, he has
:23:13. > :23:15.said many different things, some of those would make inequality more
:23:16. > :23:20.severe than it is, some may do something about it. If he actually
:23:21. > :23:25.goes about draining the swamp, as he likes to call it, I think that would
:23:26. > :23:31.help. On the other hand, it is not a very good signal that his cabinet
:23:32. > :23:36.ministers are all billionaires. We very much appreciate your time, I
:23:37. > :23:45.hope that you enjoy the rest of your Davos. Thank you very much. You're
:23:46. > :23:50.welcome. So many people there with different opinions, different views,
:23:51. > :23:54.gives you a taste of some of the discussions going on in Davos. Simon
:23:55. > :24:03.back with us. And you very much the joining us. Netflix is doing very
:24:04. > :24:07.well, subscriber figures through the roof. Huge shift in the way that
:24:08. > :24:09.people are watching films and television series.
:24:10. > :24:14.Gone are the days of the silver disc, everybody wants to be able to
:24:15. > :24:20.stream over the broadband connection, people want net flicks,
:24:21. > :24:34.and Amazon prime, iTunes, BBC iD player. -- Netflix. BBC I player.
:24:35. > :24:43.And not a bulk of silver discs around. Stream lots, just wish my
:24:44. > :24:51.broadband was faster. I understand that. Nothing but dancing, cooking
:24:52. > :25:00.and talent shows on the BBC and ITV, you may have a point, but don't
:25:01. > :25:06.forget, we are on the BBC! This story about the painting. Talk about
:25:07. > :25:13.fake news, this is a fake painting. The story is, they have discovered
:25:14. > :25:18.two paintings, produced by the same guy, both claimed as being
:25:19. > :25:22.masterpieces, by Sotheby's, there was a famous scriptwriter in
:25:23. > :25:26.Hollywood, William Goldman, used to say, the only thing you know about
:25:27. > :25:33.Hollywood, nobody knows anything. That is also drew about old Masters!
:25:34. > :25:36.Isn't it the paint! 400 years after the time... There is a new type of
:25:37. > :25:40.paint that they develop, silly, silly... You say silly, they got
:25:41. > :25:45.away with it for a long time and sold them for a lot of money. I'm
:25:46. > :25:48.going to be checking those old bits of velvet with the lady on them... !
:25:49. > :25:50.LAUGHTER Short and sweet but we appreciate
:25:51. > :25:58.it, thank you, have a good day. Paint by numbers you can't beat it.
:25:59. > :26:06.That is all from us, we will see you soon.
:26:07. > :26:10.Some of us will see some sunshine, some will be rather cloudy,
:26:11. > :26:11.generally speaking,