19/01/2017 BBC Business Live


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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,


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