27/02/2017 BBC Business Live


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This is Business Live from BBC News with Sally Bundock and Ben Bland.


Hopes of a European mega exchange between London


The London Stock Exchange says the regulatory hurdles are too high.


Live from London, that's our top story on Monday 27th February.


Doubts about the $30 billion merger plan come as a top German banker


tells the BBC that leaving the European Union is not the reason for


penalising the City of London. Also in the programme:


Ringing a familiar tune. The Nokia 3310 makes a comeback


but will help its new makers stand out from the crowd at one


of the mobile phone This is how the European markets


begin the trading week. In positive territory. We will talk about what


will move them later in the week later in the programme. We are


joined by a French entrepreneur described as a rock star in the


world of proud funding. She will reveal to us her latest plans


shortly. And the winner is... La La Land. Moonlight? Sort out the


autocue! What a night. What is your Warren Beatty moment? Get in touch.


One of Europe's biggest mergers looks like it is off.


The London Stock Exchange and its German rival


the Deutsche Boerse say their coming together is unlikely to be approved


The merger was supposed to be worth just over $30 billion and would have


created a giant trading powerhouse that would better compete


When they announced the deal last year the two companies said together


they should be able to make cost savings of $475 million a year,


about 20% of the combined group's operating costs.


They had already agreed to sell part of LSE's clearing business, LCH,


to satisfy concerns from European competition regulators


for the merger to go ahead the LSE would have


to sell its 60% stake in MTS, a major platform for trading


European government bonds, something the LSE dismissed


And with Brexit on the horizon questions about whether to put


the headquarters in Germany or London hung over the deal anyway.


To get more insight into this, we are joined by our economics editor,


Kamal Ahmed. It seems like LSE and Kamal Ahmed. It seems like LSE and


Deutsche Boerse will not make it down the aisle. It just shows how


much regulatory controls are important when it comes to these


major deals. This all feeds into the Brexit issues. This is not actually


directly to do with Brexit but nevertheless it does show how


important the regulatory voices can be in the debate as Britain makes


their way out of the European Union. We tend to focus on the politics for


obvious reasons but there are huge and conjugated rule books that need


to be unwound. I spoke to the executive director of the


Bundesbank, and the central banks in Europe will have an important role


in how Britain leads the European Union. He was talking about the City


and threats to the City and threats to the European Union financial


sectors. I kicked off by asking him what the risks were and he said they


were two-way, and there was a risk to employment in the United Kingdom.


There will be some job losses but that doesn't mean that London will


lose its very eminent position as the financial centre in Europe. From


a German perspective, should a business be looking to move to


Germany, we would not accept empty shelves, we would not accept a


letterbox companies. We will make sure that the management, the


controlling, the risk control etc, is done out of Germany. That doesn't


mean that we couldn't have back-to-back booking models but dual


structures and all the like is not something we would give. He is very


senior in Germany in banking. Interesting that you should have a


chat with him at this time when we are expecting Article 50 to be


triggered, as early as March the 9th according to some reports.


Regardless of when it is triggered, the issue of the City of London and


its relationship with the rest of Europe, that has been one of the


main issues. That will be the main concern not just for businesses in


London and banks in London, but also businesses and banks on the European


continent because London has very deep capital markets and it is very


important for providing funding to European Union businesses and


governments, let's not forget. I think he was making it clear that


although Britain wouldn't be penalised for leaving the EU, there


will be risks. The Bundesbank has put up on its own website and area


of information for banks looking to move to Frankfurt. He said it wasn't


an advert, but boy, it feeds that idea, which a number of UK banks


have already said they are looking at, that jobs will have to move in


the area of foreign exchange in particular. That is called Euro


clearing. That will have to move on to the European continent and there


will be some job losses but the Bundesbank director has made it


clear that London will remain the financial centre for the whole of


the European Union. Thank you. Much the European Union. Thank you. Much


more on that and that interview on our website. Now some other news.


US billionaire Warren Buffett has backed American


businesses to continue to create mind-boggling wealth.


The investment guru, known as the Sage of Omaha,


said stocks were virtually certain to be worth far more


US markets are currently trading at record highs.


Profits at private Australian companies showed an increase of 20%


It's a big boost for the economy and is the highest jump in operating


profits for that time of year in 17 years.


Higher prices for raw materials meant that mining companies


Later in the week Australia is due to release its latest growth


figures after the suprise contraction of 0.5% in the third


Google's voice-activated digital assistant will soon be available


on smartphones running the latest versions of the Android


Until now, Google Assistant had only been available on the firm's


The service, like Siri on iPhones, allows users to interact


The company says that the software update would bring Google Assistant


to hundreds of millions of new users.


The main opposition party in South Korea,


the Democratic Party, has said it's working with others


to seek the impeachment of the Prime Minister,


Hwang Kyo-ahn, after he decided not to extend an investigation


That scandal has amongst others seen the head of the biggest company in


the country, Samsung, arrested. This corruption scandal gets bigger and


bigger. It does. And this week we will see a culmination, I think,


when we see the indictment of some very senior figures, the formal


indictment. Probably including the acting head of Samsung. J Wiley is


currently under arrest but he will probably face a formal charge to be


outed in a court of law about allegations that some sun gave money


in return for favours from the government. -- Samsung. There is a


debate going on but it is mainly to do with the way government and


businesses are to close in this country. Thank you. We can check on


the Asian markets now. Asian markets moved lower,


led by financial stocks. Also the yen strengthened


against the dollar putting downward pressure


on the Nikkei. A stronger yen hurts Japanese shares


because it makes Japanese exports Later in the week, looking slightly


further ahead, we get the latest German employment figures and EU


leaders will meet for informal trade talks in Malta and the advertising


giant WPP will publish its full-year results towards the end of the week.


The other thing that may affect market investors all around the


world, will be looking ahead to the US President Donald Trump's speech


to US Congress about promised tax cuts and infrastructure spending.


The Mir Hussein has all the details about what is ahead on Wall Street.


Happening this week in the US, the President of the United States will


be addressing a joint session of Congress. This is a chance for Mr


Trump to speak directly to the American people and to really


outline his vision for the coming year. We can expect that the


President will likely be talking about things like the US economy and


jobs. Before we hear from the President on Tuesday, we will be


getting the latest snapshot of the American economy in terms of its


gross domestic product, GDP. And also happening this week on


Thursday, it could be the biggest tech IPO since Facebook. That is


when Snap, the parent company of Snapchat, the online messaging


service, will start trading at a publicly traded company on the New


York Stock Exchange. A look ahead to what is going on in the United


States. Quite a busy week, as ever. Joining us is Trevor Greetham,


head of multi asset Before we get into this week, what


about this Deutsche Boerse and London Stock Exchange story? It is


not official yet but rumours are rife and the LSE is saying that the


sale is not likely and shares are falling. This merger was mooted


months before the Brexit float and both parties at that time thought it


was certain that we would vote to remain and we would be heading


towards capital markets union. So clearly it is choppy waters and it


is not a huge surprise that they are saying what they are saying. Can you


give more on that story about Warren Buffitt, who is saying that he


thinks stocks are certain to be worth far more in the years ahead?


That suggests that we will see more record highs. Can they? Will we


eventually be corrected? There are two different things. In the very


long run, stocks tend to do better than all other asset classes, which


is what Warren is referring to. In the short run, the markets have


surged since the US presidential election but the world economy was


starting to recover before that vote anyway. It has been supercharged by


promises of stimulus and the real question is whether we will get them


in the big speech tomorrow. Let's talk about that President Trump


speech tomorrow, which is highly anticipated. Will he deliver on tax


cuts and massive infrastructure spending and if he does and what


happens to the share market? -- if he doesn't. I think he will deliver


but what will be frustrating is how he does it. Will there be an


increase in spending or will it be robbing Peter to pay Paul? He talked


about ramping up defence spending but taking tens of billions of


pounds away from the environment protection agency, and I think that


would be a big mistake. What about the tax cuts? I think they will be


coming but they are much slower and the question is whether the markets


are patient enough to wait for the details. We may get a situation


where the markets have a bit of a correction over the summer, which is


quite normal, waiting for evidence. At the moment we are keeping the


balls in the air, at that stage, and the US data is still strong. People


are worried about US politics, French politics, and the Mac pro and


the earnings data keep coming in strong. -- macro. Thank you. Still


to come: Beating the drum for crowdfunding, we will meet the woman


described as a rock star in the skill of raising money from the


masses. This is Business Live from BBC News.


Trinity Mirror has posted its full year preliminary results.


the largest British newspaper, magazine and digital publisher


with national and regional newspaper titles including the Daily Mirror,


the Daily Record, and the Sunday Mail.


Nice to see you, Michael. Give us your take on these numbers. They are


better than expected. Yes, profits and revenues are up. The numbers


don't disguise the fact that print volumes, in terms of circulation,


are dropping sharply. Print revenue has increased but that is largely as


a result of increasing costs. And also an increase in advertising


revenue. What is clear is that digital is becoming a much bigger


part of the company's overall strategy, certainly in terms of


views, digital revenue is up quite sharply. The chief executive of


Trinity Mirror, interviewed about Express newspapers, and whether they


will buy them or not. Yes, and that highlights the pressures that print


media is under. Simon Cox was contemplating speaking to Richard


Desmond about this and I think that is the way to go. We will get much


more consolidation, I think, within the newspaper network. Certainly


given the fact that circulation, print circulation, is continuing to


decline. Michael, we're asking our viewers


this morning what their Warren Beatty moment is after that stumble


at the Oscars. Have you ever had a Warren Beatty moment? I've had


plenty of Warren Beatty moments when I've been doing live


presentationsment none of them stand out. They're all equally as


embarrassing. A very diplomatic answer!


I was trying to find a red envelope earlier. I couldn't find one for


love nor money. Shares in the big car insurers today in London are


tumbling. That's on a decision made to change the way personal injury


claims are calculated so Admiral Group shares down. Directline down


7%. AA down some 3%. If you don't know about the changes, do take a


look at our website. There is more detail about the personal injury


changes that are coming. Our top story, a $30 billion merger


between the London Stock Exchange and Germany's Deutsche Boerse


appears on the verge of collapse after the LSE said the deal


was unlikely to be approved A quick look at how


markets are faring. It is a new trading week. All of


them are headed higher, only a little bit.


Our next guest has been described as being something of a "financial


rock star" in the crowd-funding world having accomplished two major


Leetchi is an online fundraising platform that allows anyone


You can invite others to help finance creative projects and raise


It has over seven million users in 150 countries,


and helped raise more than $425 million in 2016.


Mangopay is an online paglobal payment technology


designed for marketplaces, crowd-funding platforms


Mangopay launched in 2013 and it has over ten million users worldwide.


It creates e-wallets for buyers and sellers,


enabling funds to be held securely and for as long as necessary.


Shall we introduce the rock star, sell lean who is here with us who


has pretty much created those two companies.


Welcome to the programme. Is it a big pressure to be described as a


rock star? I hate to put lots of pressure on you, many would argue it


is a worthy description because you are now 33... 34. 34 and yet you've


created these two companies and some time ago, you started this at a very


young age, both of which are very successful and disrupting? Yeah,


true. I like to describe myself as an entrepreneur. I had the chance to


create both businesses, first the crowdfunding and Mangopay. The idea


behind Mangopay is because I run my first company and I realised there


wasn't any payment solution dedicated to market places and


crowdfunding and that's why I created Mangopay. I see myself as a


creative person and I can't stop creating a new business and then


Mangopay was born. Many entrepreneurs will think, "I've got


the ideas. I've got that area where I want to move into." It is one


thing having an idea and it is other thing making it happen and them


being successful? I remember seeing when you dream, when you try and


when you work then nothing can have limits. So you just have to create


and work hard. So with the Mangopay, how does it work? If I wanted, I


came up with a brilliant business idea that everyone is going to want


me to help get off the ground and fund. How does Mangopay help me?


Well, Mangopay is a business solution. So we only work for


business. So for example we work with 1500 platforms in Europe. For


example, if you want to create a fund-raising venture. Lucy Watson is


doing it. The technology for the payments, so collecting the payment


and then paying out is done by Mangopay. There are many


crowdfunding websites out there. Kickstarter and many of them


extremely well-known. I hadn't heard of your's until I realised you were


coming on the programme. How do you manage to stand out? Yeah, in the


prospective of Mangopay as it is a business solution so we are known by


our customers because there is not a lot of technology. So it's more


about the quality of the product. We have been launched less than four


years ago and for example in 2017 we're going to do one billion


transactions. What about Leechi? Because of the word of mouth. Lucy


Watson is collecting online and then she invites followers to join the


money pot and then they create a new money pot in the next week and the


next months. So that's how we came to have more than seven million


users. Briefly, the Guardian's business pages today reporting a lot


of London based financial tech companies are eyeing up alternative


options in Europe because of Brexit. Is that your experience or do you


think that's overblowing the effect of Brexit? Well, in our prospective


we are doing 20% of our turnover in the UK market. So the UK market is


really important for us. So we will figure out if the passporting is


still live and then we will still work the way we do and if not, we


will apply for our own licence on the UK market because it's a really


important market for us. 25% of the finance is done here. So it's an


important market. Thank you for coming in. We have to


move on. Nokia used to be synonymous


with the mobile phone and HMD the company which recently bought


the rights to the Nokia brand, is hoping a blast from the past


will restore the company back Rory Cellan-Jones sent us this


report from the Mobile World It's back. It has been reborn by the


new owners of the Nokia brand. But if Nokia is to make a huge comeback,


it's not going to be this that's going to do it. It's going to be a


smartphone called the Nokia 6 and with me is the Chief Executive of


HMD which is bringing back the two brands. Is it that's the future or


is it that? It is absolutely our smartphone is the future. This is


where we are putting our efforts and we are thriving together with our


partners. It's not that small. There are people who like to use this


instead of smartphone. It's always going down slowly, and that's why we


are focussing on smartphones. There was a lot of affection for that,


though, was there? For sure, there is a lot of interest and a lot of


media and that's serving, this announcement that now we are trying


the next chapter of Nokia. Isn't the danger that you're sending out a


nostalgic one about an old phone rather than a future phone? This is


fun and entertaining. This is making a clear statement. Nokia, this is


our story and this will be announced everywhere and our partners, more


than 500 partners globally have decided to try the next cap ter of


Nokia. More than 120 countries. It brings back memories that.


The thing that will dominate is the Oscars and that Warren Beatty


moment. It is part of their whole marketing. We're trusted do the


Oscars and there is never a mistake, well, there has been now, but there


have been a couple before. The two people who do are the chairman of


the US business and he is on the goble board of PWC, the other person


is a text woman at PWC. They have put out a message saying they are


very sorry, viewers and members of the Academy for handing over the


wrong envelope. This article that was published a couple of days ago,


what would happen if a presenter announced the wrong winner at the


Oscars? We don't know what arrangement is because it never


happened before. Now we do. It is a shambles! That's the answer. They


didn't really prepare for failure. We asked you what's your Warren


Beatty moment. A viewer says, "It was to tell us that the humans have


seven ages of life and Warren Beatty's is in his last age." Is


that a little bit harsh? Recently I was reading out a bulletin and I was


doing the markets, there was no Dow Jones number there. You pause. Did


you make it up? I made tip, but I was within 100 points. 20,000 and


something? 20,000! Nicely covered. If we don't start


saying goodbye, we'll have our own Warren Beatty moment. That's it from


Business Live today.


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