19/01/2017 BBC Business Live

This is Business Live from BBC News with Sally Bundock

fears grow as some leading firms warn thousands of staff may now be

biggest banks tells the BBC London will remain

Live from London, that's our top story on Thursday

Brexit by Theresa may lead to london losing it's financial crown jewels?

The boss of Barclays tells us what he thinks.

Also in the programme, some breathing space for now, no arrest

warrant for the Samsung boss Jay Y Lee. Prosecutors vowed to continue

the corruption investigation without wavering. We will have the latest

from Seoul. And for now European markets

are all headed higher - Theresa May is speaking in Davos

in less than an hour and so we are watching

the pound sterling. We are also going to be getting the

inside track on the winners and losers. Also, streaming service net

flicks reported a huge boost in subscriber numbers, they put it down

to their original conflict, it is a little bit like Netflix and

chilling. Do the streaming services make your much watch shows? Do get

in touch, use the hashtag. Do get in touch with your comments,

not just about Netflix but about our other stories. We love to hear from

you. We start here in London -

where fears of a costly Brexit Some leading firms are now

weighing up moving thousands of staff out of the UK -

after Prime Minister Theresa May confirmed plans to leave

the European Single Market as well as the EU -

the so called 'hard Brexit' option. The British Leader is addressing

the world economic forum in Davos in the next hour -

she will also be meeting the bosses of some of the big banks including

Goldman Sachs and JP Morgan On Wednesday the boss of HSBC said

he's preparing to move around 1000 That would mean around 20%

of its European revenue leaving the UK, worth

several billion dollars. Swiss rival UBS also told the BBC

that 1000 jobs may go in London as a result of Brexit,

again around a fifth And according to a report

in the German newspaper Goldman Sachs may halve

its London workforce, moving 3000 staff to New York

and continental Europe, But when pressed on the matter by

another news agency, Goldman Sachs said it has yet to make a firm

decision. Our business editor Simon Jack

is in Davos where he's been speaking to the Chief executive of Barclays,

Jes Staley. Jes Staley has been singing the

praises of Londoners, but I wonder if that comes as any surprise? All

banks have been looking at contingency plans, and as you said,

HSBC have triggered theirs, they said we always said we would move a

thousand people if we were to leave the single market, and that is

exactly what we are going to do. But a lot better news for Theresa May

from the boss of Barclays. He told us what he thought about the future

of London as a financial centre. As I said before, I don't believe that

financial centre will leave the city of. I think the UK will continue to

be the financial longs for Europe. We may have to move certain

activities, we may have to change the legal structure that we use to

operate in Europe, but I think it is going to be at the margin, and will

be manageable. You have a banking licence in Dublin and a big business

in the US. Is it a sensible conclusion to make that some of

those activities might go either to New York or Dublin? We have a bank

subsidiary in Ireland, which is part of the EU, and the largest credit

card operation in Germany, so we have quite a presence in Germany,

and we have an office in France. We are the largest underwriter of

European sovereign debt, so when European Union countries issue their

own debt, the largest bank underwriter in the world is

Barclays, so they will want us to staying gauged, we will want to stay

gauge. Whether we will have to root some activities through Ireland do

something in Germany, those are the we are looking at. But the bulk of

what we do will continue to occur in London, in my view. Having been

pariahs in many areas, bankers, do you find people are now rolling out

the red carpet? It is interesting that it wasn't too long ago that no

one quite wanted a banker in their backyard, and all of a sudden we are

being invited over for the barbecue! Interesting stuff! Staying with the

banks, Theresa May speaking today, but she is obviously going to be

keen to speak to the big bosses of the banks. That's right. She will be

meeting with bosses, the chief executive of Goldman Sachs, Larry

Fink, the boss of Blackrock. These are card-carrying members of the

global elite that she has been so scathing about, so that will be an

interesting meeting. She will be trying to reassure them, we may be

leaving the single market but we want the best possible access to the

single market, we will fight for access to the financial services arm

to get good access to Europe, and as you just heard Jes Staley say,

Barclays is the biggest underwriter of European bonds in the world,

European governments rely on London to do some of the business, so a lot

of people thinking it would be anyone's interest on either side for

those services to be disrupted. London is the wholesale bank for the

rest of Europe. If your bank close down and you couldn't get to it, it

would affect your life quite a lot, and that is what people are banking

on. She's probably limbering up right now for her speech which is in

35 or 40 minutes. What sort of reception do you think she will get?

I think she will get a fairly cool reception. She will get everyone's

attention, people will know what she means, why she wants to leave the

single market, what deal she is after, but I think the political

reality is that at some point, the other 27 countries have to believe

that this is a club that it is better off being in that out. We

heard the German minister saying that whatever deal gets done, it

must be inferior to membership. She will get an interested audience who

will say, how can you pull this off, and what exactly is it that you

want? She spells out, we want the best possible access, you are our

friends and partners, we may be leaving the European Union but we

are not leaving Europe. Thank you, Simon. I understand it is minus 20.

You look cold! It is quite cold. You are doing very well despite the

challenges. See you soon. Nice and warm in here!

Limbering up. As soon as you said that, I am imagining her... Theresa

May in her hotel room getting ready, pacing the floor. OK, Sally! Let's

touch on some of the other stories making headlines around the world.

Renegotiating the Nafta trade deal with Canada and Mexico is the Trump

administration's top trade priority - according to commerce secretary

He was speaking to US senators at a confirmation

Mr Ross said China was the "most protectionist" country

among large economies - but said Nafta is "logically...

the first thing for us to deal with"

Shares in TV streaming service Netflix soared as much as 9%

on the news it is growing much faster than expected.

Netflix added just over 7 million new subscribers in the last

three months of 2016 - a third more than forecast -

and expects to break the 100 million mark by the end of March.

Netflix has invested heavily in original content whilst ending

deals with top studios - a gamble that is paying off.

Shares of Cathay Pacific have fallen sharply after the Hong Kong based

airline said it would restructure and cut jobs - in the face

of what it calls "huge pressure on our business".

Cathay is facing the rise of low cost carriers in Asia -

as well as expansion by its premium rivals - and uncertainty

Investors though are concerned by a lack of detail

about the restructuring, which Cathay describes

I'm glad you mentioned that, the reasons why the shares were down,

because normally when a countries as we are cutting jobs, shares go up.

They have been hit very hard. They are in a bad way. Very good airline,

though. The other big story coming out of Asia today:

A court in South Korea has rejected a request for an arrest warrant

of the defacto boss of Samsung Jay Y Lee.

Kevin Kim is in Seoul with the latest

The last 24 hours may have been one of the longest and dramatic for Jay

Y Lee. At the city jail, the head of South Korea's biggest company waited

through the night until the court came to a decision to release him.

Early in the morning, the judge said there wasn't sufficient reason to

put him behind bars, and he was then seen walking out of jail with a

slight smile, and apparently then he went straight to work. The message

Jay Y Lee wants to send me be business as usual, but this may not

be the and of the problems for the chief of Samsung. The company has

been accused of bribery, and he may still need to face a trial if

prosecutors press charges. Samsung has continuously denied the

allegations of bribery, and their position is that contributions have

been made, but it wasn't in order to receive favours. Bribery is not an

easy crime to prove under Korean law. Neither has it been easy

putting rich family members of conglomerates in jails for

wrongdoing. In previous years, despite accusations, no Samsung

member has served jail time, only suspended sentences, and for the

time being, Jay Y Lee will not be the first was white

just for the time being, we will be keeping an eye on that. In terms of

markets today, it was a mixed picture.

We had Janet Yellen speaking yesterday, the head of the Federal

reserve. Everybody pricing in, maybe not pricing in but thinking we could

see a rise in the interest rates in the US by March of this year. That

has caused the dollar to move, and we have a weaker yen, which is

caused a flurry of activity to write a whole week. In terms of Europe, it

is a pretty mixed picture,. And Michelle Fleury has

the details about what's ahead Yesterday we got a glimpse of the

health of big banks, when Goldman Sachs reported strong profits.

financial sector since the election financial sector since the election

of Donald Trump, a view that was reinforced after the investment

banking giant gave an up week forecast for 2017. Will the halo

effect extend to credit card company American Express? It reports its

fourth-quarter results later this Thursday, and watch out for earnings

from regional bank bank of New York Mellon. Investors will also hear

from the largest technology services company, IBM, which is scheduled to

turn in its fourth-quarter results later in the day. Its cloud and data

analytics businesses are expected to continue to drive revenue growth. On

the economic front, a report from the commerce Department is expected

to show that housing starts rose in December from the previous month.

Good on you, Michelle. Joining us is Simon Derrick,

Chief Markets Strategist, This is interesting what is going on

at the moment, because you have the big boss of the American central

bank, the Federal reserve, Janet Yellen, she speaks and the dollar

goes up! Galette before, Trump speaks, he is trying to bring the

dollar down! We certainly started the year with a bang rather than a

whimper. You are absolutely right, the really interesting story that

could be building here is the difference on topic with regard to

the dollar. We have a Donald Trump that over the course of the last 12

months in one form or another have said he isn't particularly keen on

having a strong dollar because that undermines US exports and producers.

On the other hand, you have Janet Yellen saying she is talking about

hiking rates three times this year and again next year, which is

bullish for the dollar, so who will win this particular battle? A tough

call? A couple of places are still available on the Federal reserve

board, people who vote on interest rates, that might be key. . Sorry we

are being cut already, but you are going to come back and do the

papers. We will talk to you very soon. Still to come:

We get the inside track on globalisation -

are its critics right that it is a recipe for inequality

or the best way we have to lift people of poverty.

You're with Business Live from BBC News.

Moneysupermarket's twerking businessman in high heels

and Paddy Power's cat-kicking blind footballers were some of the

All of the top had complaints about offensiveness,

but the advertising standards authority said that none

Guy Parker is the chief executive of the ASA and he joins us now.

I have got to say, the commercial, the man with the big bottom,

twerking, it gets me. Interesting, some of the ads that attract the

largest number of complaints are not the ones we need to ban, we did not

ban any of the top ten last year, despite the fact that we took action

against thousands of ads, mostly for being misleading but not one

misleading ad in the top ten last year. So which ones did you take

action against? Well, numerous ads, 70% of the complaints that the UK

public make to us are about misleading advertising, and the

typical stuff is unclear pricing, conditions that are not clear enough

or are a bit hidden, surcharges that appear late in the day, exaggerated

products and services, that is the meat and drink of what we do. It is

really important that we look carefully at the complaints that we

receive that ads are likely to cause serious and widespread offence but

it is not enough that they are just this taste. White you say you take

action, what action, what does that involve? -- you say that you take

action. The ad is amended or withdrawn. In terms of those that

have got all of our attention, those that we complain about the most,

presumably the most effective? I don't know, I do know that nine out

of ten of last year's top ten were television ads, half of the

regulation we deliver at the moment is against advertising online,

particularly companies own claims on their own websites and social media

spaces, but it is still the television ads, that attract the

highest numbers of complaints, ten out of ten of 2015's top ten. Thank

you very much for your time, fascinating stuff, we all know the

ad. People are not spoiling their pets,

it seems, just a slight rise. You're watching Business

Live, our top story, the Chief Executive of Barclays,

Jes Staley, has told BBC News that he doesn't think Brexit

will change London's position He said there might

need to be changes to how the bank worked,

with business routed through the Republic

of Ireland or Germany but the bulk of what Barclays did

would continue to be in the UK. There was a time when the people who

ran the world economy is considered globalisation as a good thing.

However critics say its a recipe for inequality.

Since 2015, the richest 1% has owned more wealth

Over the next 20 years, 500 people will hand over

$2.1 trillion to their heirs, which is roughly the GDP of India.

The boss of a FTSE 100 company earns as much in a year as 10,000

people working in garment factories in Bangladesh.

Sir Angus Deaton, Economist and Nobel prize winner, is in Davos.

Great to have you on the programme, earlier this week, Oxfam came out

and said, they said the top eight richest people Eion Morgan 3.6

billion of the poorest on the planet, and in fact they said this

whole wealth gap divide is worse than they originally thought. I am

not sure I believe the numbers. OK, do you disagree with that? I think I

do, I haven't had time to study it in detail but I am not sure they

have done the corrections problem, and some of those people that they

are portraying with are major philanthropists, like Bill Gates, I

don't know how Bill Gates having so much money is bad for the world. I

don't believe Oxfam was portraying them as villains, they were trying

to illustrate a point, the point they were trying to make this time

last year, that a huge amount of wealth is in the hands of it all

proportion. The issue of inequality does not seem to be being resolved.

What is your view on solving this problem, which is one that is

getting worse, not better? I think you have to be very careful to

distinguish how it is that people got that money, many of those

people, like Bill Gates, Mark Zuckerberg, became very rich by

doing things that helped everybody in the world. There are other

people, who got very rich by getting special favours from government

which hurt other people, and I don't think it is helpful to see

inequality as a blanket figure. Carlos Slim, for example, perhaps

got that money through special favours. INAUDIBLE QUESTION

We need to make sure that people do not get rich by stealing from other

people, by getting special favours from the government and what we like

to call rent seeking, and that is what we have got to stamp out. We

also need a much better democratic system than we have, and then the

inequality problem, as you call it, would look after itself. How do you

raise the wealth, we mentioned earlier, 3.6 billion of the poorest

around the world, have you raise their wealth? They have been doing

extremely well, actually, the decrease in poverty over the last

ten years, the last 30 years, is one of the greatest achievements of

mankind, and it has come through much maligned globalisation, so I

don't understand that particular part of the issue. You are at Davos,

do you think, every year, the great and the good gather there are, do we

get anything from it, from the gathering you are at right now? I'm

sorry, I did not hear anything you said. Does Davos achieve anything? I

don't know, this is the first time I have been here, it is a very

strange, very fragmented sort of event. With people who are clearly

here for very different purposes. From your point of view, we have the

inauguration of Donald Trump, to become the next US president, what

do you think he will do in terms of helping or hindering inequality? I

think it is very difficult to know what Trump is going to do, he has

said many different things, some of those would make inequality more

severe than it is, some may do something about it. If he actually

goes about draining the swamp, as he likes to call it, I think that would

help. On the other hand, it is not a very good signal that his cabinet

ministers are all billionaires. We very much appreciate your time, I

hope that you enjoy the rest of your Davos. Thank you very much. You're

welcome. So many people there with different opinions, different views,

gives you a taste of some of the discussions going on in Davos. Simon

back with us. And you very much the joining us. Netflix is doing very

well, subscriber figures through the roof. Huge shift in the way that

people are watching films and television series.

Gone are the days of the silver disc, everybody wants to be able to

stream over the broadband connection, people want net flicks,

and Amazon prime, iTunes, BBC iD player. -- Netflix. BBC I player.

And not a bulk of silver discs around. Stream lots, just wish my

broadband was faster. I understand that. Nothing but dancing, cooking

and talent shows on the BBC and ITV, you may have a point, but don't

forget, we are on the BBC! This story about the painting. Talk about

fake news, this is a fake painting. The story is, they have discovered

two paintings, produced by the same guy, both claimed as being

masterpieces, by Sotheby's, there was a famous scriptwriter in

Hollywood, William Goldman, used to say, the only thing you know about

Hollywood, nobody knows anything. That is also drew about old Masters!

Isn't it the paint! 400 years after the time... There is a new type of

paint that they develop, silly, silly... You say silly, they got

away with it for a long time and sold them for a lot of money. I'm

going to be checking those old bits of velvet with the lady on them... !

LAUGHTER Short and sweet but we appreciate

it, thank you, have a good day. Paint by numbers you can't beat it.

That is all from us, we will see you soon.

Some of us will see some sunshine, some will be rather cloudy,

generally speaking,