:00:00. > :00:00.This is Business Live from BBC News with Sally Bundock and Ben Bland.
:00:07. > :00:10.Hopes of a European mega exchange between London
:00:11. > :00:19.The London Stock Exchange says the regulatory hurdles are too high.
:00:20. > :00:41.Live from London, that's our top story on Monday 27th February.
:00:42. > :00:47.Doubts about the $30 billion merger plan come as a top German banker
:00:48. > :00:48.tells the BBC that leaving the European Union is not the reason for
:00:49. > :00:53.penalising the City of London. Also in the programme:
:00:54. > :00:55.Ringing a familiar tune. The Nokia 3310 makes a comeback
:00:56. > :00:58.but will help its new makers stand out from the crowd at one
:00:59. > :01:07.of the mobile phone This is how the European markets
:01:08. > :01:14.begin the trading week. In positive territory. We will talk about what
:01:15. > :01:18.will move them later in the week later in the programme. We are
:01:19. > :01:23.joined by a French entrepreneur described as a rock star in the
:01:24. > :01:29.world of proud funding. She will reveal to us her latest plans
:01:30. > :01:37.shortly. And the winner is... La La Land. Moonlight? Sort out the
:01:38. > :01:48.autocue! What a night. What is your Warren Beatty moment? Get in touch.
:01:49. > :01:57.One of Europe's biggest mergers looks like it is off.
:01:58. > :02:02.The London Stock Exchange and its German rival
:02:03. > :02:05.the Deutsche Boerse say their coming together is unlikely to be approved
:02:06. > :02:14.The merger was supposed to be worth just over $30 billion and would have
:02:15. > :02:16.created a giant trading powerhouse that would better compete
:02:17. > :02:27.When they announced the deal last year the two companies said together
:02:28. > :02:31.they should be able to make cost savings of $475 million a year,
:02:32. > :02:36.about 20% of the combined group's operating costs.
:02:37. > :02:41.They had already agreed to sell part of LSE's clearing business, LCH,
:02:42. > :02:45.to satisfy concerns from European competition regulators
:02:46. > :02:56.for the merger to go ahead the LSE would have
:02:57. > :02:59.to sell its 60% stake in MTS, a major platform for trading
:03:00. > :03:01.European government bonds, something the LSE dismissed
:03:02. > :03:05.And with Brexit on the horizon questions about whether to put
:03:06. > :03:17.the headquarters in Germany or London hung over the deal anyway.
:03:18. > :03:22.To get more insight into this, we are joined by our economics editor,
:03:23. > :03:25.Kamal Ahmed. It seems like LSE and Kamal Ahmed. It seems like LSE and
:03:26. > :03:30.Deutsche Boerse will not make it down the aisle. It just shows how
:03:31. > :03:35.much regulatory controls are important when it comes to these
:03:36. > :03:39.major deals. This all feeds into the Brexit issues. This is not actually
:03:40. > :03:47.directly to do with Brexit but nevertheless it does show how
:03:48. > :03:51.important the regulatory voices can be in the debate as Britain makes
:03:52. > :03:54.their way out of the European Union. We tend to focus on the politics for
:03:55. > :04:00.obvious reasons but there are huge and conjugated rule books that need
:04:01. > :04:03.to be unwound. I spoke to the executive director of the
:04:04. > :04:09.Bundesbank, and the central banks in Europe will have an important role
:04:10. > :04:14.in how Britain leads the European Union. He was talking about the City
:04:15. > :04:17.and threats to the City and threats to the European Union financial
:04:18. > :04:22.sectors. I kicked off by asking him what the risks were and he said they
:04:23. > :04:27.were two-way, and there was a risk to employment in the United Kingdom.
:04:28. > :04:31.There will be some job losses but that doesn't mean that London will
:04:32. > :04:38.lose its very eminent position as the financial centre in Europe. From
:04:39. > :04:43.a German perspective, should a business be looking to move to
:04:44. > :04:47.Germany, we would not accept empty shelves, we would not accept a
:04:48. > :04:52.letterbox companies. We will make sure that the management, the
:04:53. > :04:56.controlling, the risk control etc, is done out of Germany. That doesn't
:04:57. > :05:01.mean that we couldn't have back-to-back booking models but dual
:05:02. > :05:10.structures and all the like is not something we would give. He is very
:05:11. > :05:14.senior in Germany in banking. Interesting that you should have a
:05:15. > :05:19.chat with him at this time when we are expecting Article 50 to be
:05:20. > :05:22.triggered, as early as March the 9th according to some reports.
:05:23. > :05:26.Regardless of when it is triggered, the issue of the City of London and
:05:27. > :05:30.its relationship with the rest of Europe, that has been one of the
:05:31. > :05:35.main issues. That will be the main concern not just for businesses in
:05:36. > :05:39.London and banks in London, but also businesses and banks on the European
:05:40. > :05:43.continent because London has very deep capital markets and it is very
:05:44. > :05:53.important for providing funding to European Union businesses and
:05:54. > :05:56.governments, let's not forget. I think he was making it clear that
:05:57. > :06:00.although Britain wouldn't be penalised for leaving the EU, there
:06:01. > :06:04.will be risks. The Bundesbank has put up on its own website and area
:06:05. > :06:08.of information for banks looking to move to Frankfurt. He said it wasn't
:06:09. > :06:13.an advert, but boy, it feeds that idea, which a number of UK banks
:06:14. > :06:16.have already said they are looking at, that jobs will have to move in
:06:17. > :06:21.the area of foreign exchange in particular. That is called Euro
:06:22. > :06:26.clearing. That will have to move on to the European continent and there
:06:27. > :06:29.will be some job losses but the Bundesbank director has made it
:06:30. > :06:30.clear that London will remain the financial centre for the whole of
:06:31. > :06:34.the European Union. Thank you. Much the European Union. Thank you. Much
:06:35. > :06:39.more on that and that interview on our website. Now some other news.
:06:40. > :06:42.US billionaire Warren Buffett has backed American
:06:43. > :06:44.businesses to continue to create mind-boggling wealth.
:06:45. > :06:47.The investment guru, known as the Sage of Omaha,
:06:48. > :06:49.said stocks were virtually certain to be worth far more
:06:50. > :06:58.US markets are currently trading at record highs.
:06:59. > :07:01.Profits at private Australian companies showed an increase of 20%
:07:02. > :07:07.It's a big boost for the economy and is the highest jump in operating
:07:08. > :07:13.profits for that time of year in 17 years.
:07:14. > :07:16.Higher prices for raw materials meant that mining companies
:07:17. > :07:22.Later in the week Australia is due to release its latest growth
:07:23. > :07:25.figures after the suprise contraction of 0.5% in the third
:07:26. > :07:29.Google's voice-activated digital assistant will soon be available
:07:30. > :07:32.on smartphones running the latest versions of the Android
:07:33. > :07:37.Until now, Google Assistant had only been available on the firm's
:07:38. > :07:43.The service, like Siri on iPhones, allows users to interact
:07:44. > :07:49.The company says that the software update would bring Google Assistant
:07:50. > :07:56.to hundreds of millions of new users.
:07:57. > :07:58.The main opposition party in South Korea,
:07:59. > :08:00.the Democratic Party, has said it's working with others
:08:01. > :08:03.to seek the impeachment of the Prime Minister,
:08:04. > :08:07.Hwang Kyo-ahn, after he decided not to extend an investigation
:08:08. > :08:22.That scandal has amongst others seen the head of the biggest company in
:08:23. > :08:26.the country, Samsung, arrested. This corruption scandal gets bigger and
:08:27. > :08:32.bigger. It does. And this week we will see a culmination, I think,
:08:33. > :08:35.when we see the indictment of some very senior figures, the formal
:08:36. > :08:40.indictment. Probably including the acting head of Samsung. J Wiley is
:08:41. > :08:48.currently under arrest but he will probably face a formal charge to be
:08:49. > :08:51.outed in a court of law about allegations that some sun gave money
:08:52. > :09:05.in return for favours from the government. -- Samsung. There is a
:09:06. > :09:08.debate going on but it is mainly to do with the way government and
:09:09. > :09:13.businesses are to close in this country. Thank you. We can check on
:09:14. > :09:16.the Asian markets now. Asian markets moved lower,
:09:17. > :09:18.led by financial stocks. Also the yen strengthened
:09:19. > :09:20.against the dollar putting downward pressure
:09:21. > :09:23.on the Nikkei. A stronger yen hurts Japanese shares
:09:24. > :09:47.because it makes Japanese exports Later in the week, looking slightly
:09:48. > :09:51.further ahead, we get the latest German employment figures and EU
:09:52. > :09:55.leaders will meet for informal trade talks in Malta and the advertising
:09:56. > :09:59.giant WPP will publish its full-year results towards the end of the week.
:10:00. > :10:03.The other thing that may affect market investors all around the
:10:04. > :10:08.world, will be looking ahead to the US President Donald Trump's speech
:10:09. > :10:12.to US Congress about promised tax cuts and infrastructure spending.
:10:13. > :10:18.The Mir Hussein has all the details about what is ahead on Wall Street.
:10:19. > :10:21.Happening this week in the US, the President of the United States will
:10:22. > :10:25.be addressing a joint session of Congress. This is a chance for Mr
:10:26. > :10:28.Trump to speak directly to the American people and to really
:10:29. > :10:32.outline his vision for the coming year. We can expect that the
:10:33. > :10:37.President will likely be talking about things like the US economy and
:10:38. > :10:42.jobs. Before we hear from the President on Tuesday, we will be
:10:43. > :10:46.getting the latest snapshot of the American economy in terms of its
:10:47. > :10:52.gross domestic product, GDP. And also happening this week on
:10:53. > :10:57.Thursday, it could be the biggest tech IPO since Facebook. That is
:10:58. > :11:01.when Snap, the parent company of Snapchat, the online messaging
:11:02. > :11:07.service, will start trading at a publicly traded company on the New
:11:08. > :11:09.York Stock Exchange. A look ahead to what is going on in the United
:11:10. > :11:14.States. Quite a busy week, as ever. Joining us is Trevor Greetham,
:11:15. > :11:24.head of multi asset Before we get into this week, what
:11:25. > :11:28.about this Deutsche Boerse and London Stock Exchange story? It is
:11:29. > :11:35.not official yet but rumours are rife and the LSE is saying that the
:11:36. > :11:39.sale is not likely and shares are falling. This merger was mooted
:11:40. > :11:43.months before the Brexit float and both parties at that time thought it
:11:44. > :11:47.was certain that we would vote to remain and we would be heading
:11:48. > :11:51.towards capital markets union. So clearly it is choppy waters and it
:11:52. > :11:55.is not a huge surprise that they are saying what they are saying. Can you
:11:56. > :11:59.give more on that story about Warren Buffitt, who is saying that he
:12:00. > :12:03.thinks stocks are certain to be worth far more in the years ahead?
:12:04. > :12:10.That suggests that we will see more record highs. Can they? Will we
:12:11. > :12:14.eventually be corrected? There are two different things. In the very
:12:15. > :12:18.long run, stocks tend to do better than all other asset classes, which
:12:19. > :12:22.is what Warren is referring to. In the short run, the markets have
:12:23. > :12:25.surged since the US presidential election but the world economy was
:12:26. > :12:29.starting to recover before that vote anyway. It has been supercharged by
:12:30. > :12:33.promises of stimulus and the real question is whether we will get them
:12:34. > :12:37.in the big speech tomorrow. Let's talk about that President Trump
:12:38. > :12:40.speech tomorrow, which is highly anticipated. Will he deliver on tax
:12:41. > :12:45.cuts and massive infrastructure spending and if he does and what
:12:46. > :12:51.happens to the share market? -- if he doesn't. I think he will deliver
:12:52. > :12:55.but what will be frustrating is how he does it. Will there be an
:12:56. > :13:01.increase in spending or will it be robbing Peter to pay Paul? He talked
:13:02. > :13:04.about ramping up defence spending but taking tens of billions of
:13:05. > :13:08.pounds away from the environment protection agency, and I think that
:13:09. > :13:11.would be a big mistake. What about the tax cuts? I think they will be
:13:12. > :13:14.coming but they are much slower and the question is whether the markets
:13:15. > :13:19.are patient enough to wait for the details. We may get a situation
:13:20. > :13:23.where the markets have a bit of a correction over the summer, which is
:13:24. > :13:27.quite normal, waiting for evidence. At the moment we are keeping the
:13:28. > :13:34.balls in the air, at that stage, and the US data is still strong. People
:13:35. > :13:37.are worried about US politics, French politics, and the Mac pro and
:13:38. > :13:49.the earnings data keep coming in strong. -- macro. Thank you. Still
:13:50. > :13:53.to come: Beating the drum for crowdfunding, we will meet the woman
:13:54. > :13:57.described as a rock star in the skill of raising money from the
:13:58. > :14:08.masses. This is Business Live from BBC News.
:14:09. > :14:10.Trinity Mirror has posted its full year preliminary results.
:14:11. > :14:13.the largest British newspaper, magazine and digital publisher
:14:14. > :14:15.with national and regional newspaper titles including the Daily Mirror,
:14:16. > :14:17.the Daily Record, and the Sunday Mail.
:14:18. > :14:24.Nice to see you, Michael. Give us your take on these numbers. They are
:14:25. > :14:28.better than expected. Yes, profits and revenues are up. The numbers
:14:29. > :14:33.don't disguise the fact that print volumes, in terms of circulation,
:14:34. > :14:39.are dropping sharply. Print revenue has increased but that is largely as
:14:40. > :14:42.a result of increasing costs. And also an increase in advertising
:14:43. > :14:48.revenue. What is clear is that digital is becoming a much bigger
:14:49. > :14:55.part of the company's overall strategy, certainly in terms of
:14:56. > :15:02.views, digital revenue is up quite sharply. The chief executive of
:15:03. > :15:06.Trinity Mirror, interviewed about Express newspapers, and whether they
:15:07. > :15:11.will buy them or not. Yes, and that highlights the pressures that print
:15:12. > :15:13.media is under. Simon Cox was contemplating speaking to Richard
:15:14. > :15:19.Desmond about this and I think that is the way to go. We will get much
:15:20. > :15:24.more consolidation, I think, within the newspaper network. Certainly
:15:25. > :15:25.given the fact that circulation, print circulation, is continuing to
:15:26. > :15:34.decline. Michael, we're asking our viewers
:15:35. > :15:39.this morning what their Warren Beatty moment is after that stumble
:15:40. > :15:46.at the Oscars. Have you ever had a Warren Beatty moment? I've had
:15:47. > :15:48.plenty of Warren Beatty moments when I've been doing live
:15:49. > :15:53.presentationsment none of them stand out. They're all equally as
:15:54. > :15:58.embarrassing. A very diplomatic answer!
:15:59. > :16:05.I was trying to find a red envelope earlier. I couldn't find one for
:16:06. > :16:08.love nor money. Shares in the big car insurers today in London are
:16:09. > :16:13.tumbling. That's on a decision made to change the way personal injury
:16:14. > :16:20.claims are calculated so Admiral Group shares down. Directline down
:16:21. > :16:24.7%. AA down some 3%. If you don't know about the changes, do take a
:16:25. > :16:26.look at our website. There is more detail about the personal injury
:16:27. > :16:35.changes that are coming. Our top story, a $30 billion merger
:16:36. > :16:40.between the London Stock Exchange and Germany's Deutsche Boerse
:16:41. > :16:43.appears on the verge of collapse after the LSE said the deal
:16:44. > :16:45.was unlikely to be approved A quick look at how
:16:46. > :16:54.markets are faring. It is a new trading week. All of
:16:55. > :17:05.them are headed higher, only a little bit.
:17:06. > :17:09.Our next guest has been described as being something of a "financial
:17:10. > :17:13.rock star" in the crowd-funding world having accomplished two major
:17:14. > :17:18.Leetchi is an online fundraising platform that allows anyone
:17:19. > :17:23.You can invite others to help finance creative projects and raise
:17:24. > :17:29.It has over seven million users in 150 countries,
:17:30. > :17:31.and helped raise more than $425 million in 2016.
:17:32. > :17:42.Mangopay is an online paglobal payment technology
:17:43. > :17:43.designed for marketplaces, crowd-funding platforms
:17:44. > :17:51.Mangopay launched in 2013 and it has over ten million users worldwide.
:17:52. > :17:54.It creates e-wallets for buyers and sellers,
:17:55. > :18:05.enabling funds to be held securely and for as long as necessary.
:18:06. > :18:11.Shall we introduce the rock star, sell lean who is here with us who
:18:12. > :18:17.has pretty much created those two companies.
:18:18. > :18:24.Welcome to the programme. Is it a big pressure to be described as a
:18:25. > :18:29.rock star? I hate to put lots of pressure on you, many would argue it
:18:30. > :18:36.is a worthy description because you are now 33... 34. 34 and yet you've
:18:37. > :18:41.created these two companies and some time ago, you started this at a very
:18:42. > :18:48.young age, both of which are very successful and disrupting? Yeah,
:18:49. > :18:53.true. I like to describe myself as an entrepreneur. I had the chance to
:18:54. > :18:58.create both businesses, first the crowdfunding and Mangopay. The idea
:18:59. > :19:04.behind Mangopay is because I run my first company and I realised there
:19:05. > :19:08.wasn't any payment solution dedicated to market places and
:19:09. > :19:12.crowdfunding and that's why I created Mangopay. I see myself as a
:19:13. > :19:17.creative person and I can't stop creating a new business and then
:19:18. > :19:21.Mangopay was born. Many entrepreneurs will think, "I've got
:19:22. > :19:27.the ideas. I've got that area where I want to move into." It is one
:19:28. > :19:32.thing having an idea and it is other thing making it happen and them
:19:33. > :19:36.being successful? I remember seeing when you dream, when you try and
:19:37. > :19:45.when you work then nothing can have limits. So you just have to create
:19:46. > :19:49.and work hard. So with the Mangopay, how does it work? If I wanted, I
:19:50. > :19:53.came up with a brilliant business idea that everyone is going to want
:19:54. > :19:57.me to help get off the ground and fund. How does Mangopay help me?
:19:58. > :20:03.Well, Mangopay is a business solution. So we only work for
:20:04. > :20:13.business. So for example we work with 1500 platforms in Europe. For
:20:14. > :20:20.example, if you want to create a fund-raising venture. Lucy Watson is
:20:21. > :20:23.doing it. The technology for the payments, so collecting the payment
:20:24. > :20:27.and then paying out is done by Mangopay. There are many
:20:28. > :20:32.crowdfunding websites out there. Kickstarter and many of them
:20:33. > :20:37.extremely well-known. I hadn't heard of your's until I realised you were
:20:38. > :20:44.coming on the programme. How do you manage to stand out? Yeah, in the
:20:45. > :20:50.prospective of Mangopay as it is a business solution so we are known by
:20:51. > :20:55.our customers because there is not a lot of technology. So it's more
:20:56. > :20:59.about the quality of the product. We have been launched less than four
:21:00. > :21:06.years ago and for example in 2017 we're going to do one billion
:21:07. > :21:11.transactions. What about Leechi? Because of the word of mouth. Lucy
:21:12. > :21:16.Watson is collecting online and then she invites followers to join the
:21:17. > :21:20.money pot and then they create a new money pot in the next week and the
:21:21. > :21:25.next months. So that's how we came to have more than seven million
:21:26. > :21:29.users. Briefly, the Guardian's business pages today reporting a lot
:21:30. > :21:33.of London based financial tech companies are eyeing up alternative
:21:34. > :21:37.options in Europe because of Brexit. Is that your experience or do you
:21:38. > :21:44.think that's overblowing the effect of Brexit? Well, in our prospective
:21:45. > :21:50.we are doing 20% of our turnover in the UK market. So the UK market is
:21:51. > :21:54.really important for us. So we will figure out if the passporting is
:21:55. > :21:59.still live and then we will still work the way we do and if not, we
:22:00. > :22:02.will apply for our own licence on the UK market because it's a really
:22:03. > :22:07.important market for us. 25% of the finance is done here. So it's an
:22:08. > :22:10.important market. Thank you for coming in. We have to
:22:11. > :22:12.move on. Nokia used to be synonymous
:22:13. > :22:17.with the mobile phone and HMD the company which recently bought
:22:18. > :22:19.the rights to the Nokia brand, is hoping a blast from the past
:22:20. > :22:22.will restore the company back Rory Cellan-Jones sent us this
:22:23. > :22:36.report from the Mobile World It's back. It has been reborn by the
:22:37. > :22:41.new owners of the Nokia brand. But if Nokia is to make a huge comeback,
:22:42. > :22:45.it's not going to be this that's going to do it. It's going to be a
:22:46. > :22:50.smartphone called the Nokia 6 and with me is the Chief Executive of
:22:51. > :22:55.HMD which is bringing back the two brands. Is it that's the future or
:22:56. > :23:00.is it that? It is absolutely our smartphone is the future. This is
:23:01. > :23:07.where we are putting our efforts and we are thriving together with our
:23:08. > :23:13.partners. It's not that small. There are people who like to use this
:23:14. > :23:16.instead of smartphone. It's always going down slowly, and that's why we
:23:17. > :23:20.are focussing on smartphones. There was a lot of affection for that,
:23:21. > :23:24.though, was there? For sure, there is a lot of interest and a lot of
:23:25. > :23:30.media and that's serving, this announcement that now we are trying
:23:31. > :23:36.the next chapter of Nokia. Isn't the danger that you're sending out a
:23:37. > :23:41.nostalgic one about an old phone rather than a future phone? This is
:23:42. > :23:48.fun and entertaining. This is making a clear statement. Nokia, this is
:23:49. > :23:54.our story and this will be announced everywhere and our partners, more
:23:55. > :24:02.than 500 partners globally have decided to try the next cap ter of
:24:03. > :24:10.Nokia. More than 120 countries. It brings back memories that.
:24:11. > :24:24.The thing that will dominate is the Oscars and that Warren Beatty
:24:25. > :24:29.moment. It is part of their whole marketing. We're trusted do the
:24:30. > :24:35.Oscars and there is never a mistake, well, there has been now, but there
:24:36. > :24:41.have been a couple before. The two people who do are the chairman of
:24:42. > :24:47.the US business and he is on the goble board of PWC, the other person
:24:48. > :24:53.is a text woman at PWC. They have put out a message saying they are
:24:54. > :24:58.very sorry, viewers and members of the Academy for handing over the
:24:59. > :25:03.wrong envelope. This article that was published a couple of days ago,
:25:04. > :25:07.what would happen if a presenter announced the wrong winner at the
:25:08. > :25:11.Oscars? We don't know what arrangement is because it never
:25:12. > :25:15.happened before. Now we do. It is a shambles! That's the answer. They
:25:16. > :25:19.didn't really prepare for failure. We asked you what's your Warren
:25:20. > :25:28.Beatty moment. A viewer says, "It was to tell us that the humans have
:25:29. > :25:37.seven ages of life and Warren Beatty's is in his last age." Is
:25:38. > :25:42.that a little bit harsh? Recently I was reading out a bulletin and I was
:25:43. > :25:48.doing the markets, there was no Dow Jones number there. You pause. Did
:25:49. > :25:53.you make it up? I made tip, but I was within 100 points. 20,000 and
:25:54. > :26:00.something? 20,000! Nicely covered. If we don't start
:26:01. > :26:03.saying goodbye, we'll have our own Warren Beatty moment. That's it from
:26:04. > :26:04.Business Live today.