22/03/2017 BBC Business Live


22/03/2017

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With the UK also making aviation security tighter than ever

:00:00.:00:24.

what will it mean for competition and safety in the skies?

:00:25.:00:27.

Is it about more than mining and meat?

:00:28.:00:31.

China's Premier talks trade in Australia but can

:00:32.:00:32.

they restart a Pacific free trade deal?

:00:33.:00:40.

This is the situation in Europe. Stocks are on the slide following a

:00:41.:00:48.

Wall Street sell off triggered by Donald Trump's inability to bring in

:00:49.:00:50.

tax cuts and spending plans. And we'll be getting

:00:51.:00:52.

the inside track on the most iconic The boss of the Magnum photo

:00:53.:00:54.

agency will tell us how they make their pictures stand out

:00:55.:00:58.

in the age of the smartphone. Today we want to know in light

:00:59.:01:05.

of the laptop ban on some flights, Welcome to the programme.

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after your valuables Airlines across the Middle East

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and North Africa are scrambling to meet Saturday's deadline

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to enforce a ban on electronic devices in cabins that's

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being imposed by the United States It's already led to shares

:01:33.:01:34.

in Turkish Airlines and budget airline Pegasus

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falling this morning. Importantly the two bans affect

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different countries. The US decision impacts

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flights originating from airports in Morocco,

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Egypt, Turkey, Jordan, Lebanon, It means it captures some

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of the world's biggest long haul carriers including

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Emirates, Ethihad, The UK ban has a more limited focus

:01:59.:01:59.

- it doesn't include Morocco, the UAE or Qatar -

:02:00.:02:06.

but it does include Tunisia. British Airways and Easyjet

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are among the airlines affected. Officials from both governments say

:02:09.:02:11.

bombs could be hidden Any electronic device larger than 16

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x 9.3cms is affected and will need to be

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placed into hold luggage. I'm joined by our business

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correspondent, Theo Leggett. You could just imagine the

:02:30.:02:43.

confusion, the delay, the frustration that this is going to

:02:44.:02:46.

ensue, not to mention the concern about your valuables in the hold?

:02:47.:02:49.

There are two points here. The US ban of the two is the more

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significant one because that includes flights from major Middle

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Eastern hubs, Doha, Dubai and Abu Dhabi. So those are the hubs of

:02:59.:03:07.

Emirates, and Qatar Airways. Major business travel companies. The

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potential for disruption is severe as a lot of passengers will be

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taking connecting flights into those hubs and they will not be sure what

:03:15.:03:17.

to do with their electronic devices which will have to be packed in the

:03:18.:03:20.

hold from the start of their journey. For the passenger, it means

:03:21.:03:24.

not only do you not have your electronic devices, but it a laptop

:03:25.:03:28.

or DVD play or E-reader on the plane, but it has to be packed in

:03:29.:03:32.

the hold. Normally, packing valuable items in the hold is a no, no

:03:33.:03:36.

because we know things go missing. They go missing a lot. By the time

:03:37.:03:40.

found out that something has gone missing from your bag in say

:03:41.:03:44.

Istanbul, you're back in London. Because things go missing so easily

:03:45.:03:48.

or are damaged, they're not insured either, usually? No, sometimes they

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are not insured and that's another problem and don't forget data is an

:03:53.:03:55.

issue as well. If you are a businessman, you're carrying your

:03:56.:03:59.

laptop on a plane, it may include confidential data on it, you don't

:04:00.:04:03.

want it to be in the hold in case it goes missing or falls into the wrong

:04:04.:04:07.

hands and the wrong people see that data. This could be really difficult

:04:08.:04:13.

for the airlines. Some travellers from Australia and New Zealand may

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choose to fly via Singapore because of this? They have alternatives and

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what some are saying there maybe a protectionist element to the US ban

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in particular because that does include the hubs of Emirates and

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Qatar Airways, the three airlines are strongks financially robust

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airlines and their American rivals believe they trade unfairly. This

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ban has its origins in safety concerns and may have been widened a

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little bit to include them and to make life a little bit harder for

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those airlines. No surprise today we're seeing, you know, shares in

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some airlines falling in response to this. I mean it is going to be a

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real headache on many levels, isn't it? We know from past experience

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when new security arrangements are introduced it leads to

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inconvenience. The classic was in 2006 when many airports introduced

:05:08.:05:14.

new restrictions on carrying liquids on board flights. People don't come

:05:15.:05:18.

ready to the airport for that kind of thing. They don't know what to

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expect. There are delays passing through security and that could lead

:05:25.:05:27.

to delays on flights as well. There is a lot of details on our website

:05:28.:05:31.

with diagrams and detail. Uber has admitted that

:05:32.:05:35.

the relationship with its drivers has become increasingly strained,

:05:36.:05:41.

and it has vowed to The ride-sharing firm told the media

:05:42.:05:43.

at an online press call that some of its policies

:05:44.:05:47.

were "unintentionally In particular, drivers

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for the company will now have more ability to defend themselves

:05:50.:05:52.

against rider Dutch banking giant ING has

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confirmed, that it is the target of a criminal investigation by Dutch

:05:54.:06:00.

prosecutors into money The company's shares have fallen

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because it conceded it could face big fines as a result of the probe.

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A US court has ruled Bank of New York Mellon must face

:06:18.:06:21.

Commerzbank over claims it is liable for $1 billion of losses incurred

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by the German lender from toxic assets it bought.

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District Judge George Daniels in Manhattan said Commerzbank can

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pursue BNY Mellon over allegations it was in breach of contract

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and negligent, but dismissed three other claims.

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Bank of New York Mellon had no immediate comment.

:06:36.:06:37.

David Wollmuth, a lawyer for Commerzbank, declined to comment.

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Ates week today. Do you know what it is? The triggering of Article 50. In

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the run-up to that, you can imagine the various organisations and lobby

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groups are saying what they want out of that negotiation process. The

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House of Lords is putting pressure on Prime Minister Theresa May to

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make sure that there is a good deal for certain businesses, certain

:07:16.:07:18.

types of businesses in the UK. We'll have more detail on that later in

:07:19.:07:22.

the show, but that is on the Business Live page today among other

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business stories. China's Premier Li Keqiang

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sets off for a trip China hopes to enhance free trade

:07:30.:07:32.

agreements with both nations and promote cooperation in science,

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technology and innovation. Hello there Steve. This is a very

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important trading relationship, isn't it? Absolutely. I mean perhaps

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to give you an idea of the spin I guess, the premier is putting on it,

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he has written a piece in the Australian newspaper today and he

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starts off with the line, "We live in a world with growing

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uncertainties and a sense of disorientation." A lot of people

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would agree with him on that. Then he goes on to speak about less than

:08:07.:08:15.

desirable global economic recovery, rising protectionism, heightened

:08:16.:08:18.

geopolitical rivalry. It is pretty clear what he's doing there is sort

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of aiming at, I guess, a contrast with the United States' position of

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pushing up trade barriers. He's saying that China and Australia and

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other like minded countries should be defending free trade. I think on

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that question, he'll get a warm reception in Australia. Certainly,

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you know, China and Australia are big trading partners. China is

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number one trading partner with Australia and for that matter, he's

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going along to the football even to see the Sydney Swans play so he's

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bound to have a great time. Thank you very much for that update

:08:56.:09:00.

in Beijing for us. Interesting what they'll get up to.

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So shares fell in Asia with Tokyo tumbling by more than 2% after US

:09:07.:09:11.

stocks took their biggest loss in five months. The dlarl fell against

:09:12.:09:22.

the yen. The Hang Seng dropped by 1.1%. The sell off was spurred by

:09:23.:09:29.

legislative obstacles by a health care bill backed by Trump that

:09:30.:09:34.

raised questions over his prospects for boosting growth and regulations.

:09:35.:09:37.

The Dow closed yesterday down more than 1%. Let's look at Europe.

:09:38.:09:41.

Stocks are also on the slide following that fall on Wall Street.

:09:42.:09:47.

All the price are lower affecting -- oil prices are lower.

:09:48.:09:49.

And Samira Hussain has the details about what's ahead

:09:50.:09:51.

American regulators are looking to shorten the amount of time it takes

:09:52.:10:02.

for a security straight to settle. They are looking to shorten that.

:10:03.:10:12.

The governing body the SEC will hold a mick meeting to vote on adopting a

:10:13.:10:17.

new final rule. The National Association of Retailers is

:10:18.:10:20.

expecting to report that existing home sales fell 2% in the month of

:10:21.:10:25.

February. And finally, the Canadian Government will release its second

:10:26.:10:29.

budget under liberal Prime Minister Justin Trudeau. The Government is

:10:30.:10:33.

not expected move much room for spending and investors will be

:10:34.:10:37.

watching for any changes to tax policy and further details on the

:10:38.:10:40.

liberals plans to grow the economy at a time when the country faces a

:10:41.:10:45.

number of uncertainties including American trade policy.

:10:46.:10:47.

Joining us is Jeremy Stretch, head of currency strategy

:10:48.:10:50.

We are talking about this big slide on Wall Street the night before. It

:10:51.:11:02.

is continuing through in Asia and Europe today? Well, big slide, yes.

:11:03.:11:07.

More than a 1% correction because we have been used over the last four or

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myself months to continuous record highs and that's become more note

:11:13.:11:17.

worthy, but it is a recognition that markets have become over ambitious

:11:18.:11:20.

in terms of anticipating the regulatory changes and the fiscal

:11:21.:11:23.

expansion that was going to be brought forward by the Trump

:11:24.:11:26.

administration and we're having a reality check here. Do you think it

:11:27.:11:29.

is to do with the health care Bill which is being pushed through

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Congress. There are fears it won't get through because of opposition

:11:34.:11:36.

and that could delay his agenda? It is being seen as a litmus test. Yes,

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I think it is clearly been seen in a sort of an obvious light in that

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regard and I think, markets and investors look back to November and

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thought well, Republicans have swept the board in the political

:11:51.:11:53.

establishment so that will allow them to push through their

:11:54.:11:57.

legislative framework, but the reality is different because we have

:11:58.:12:01.

the fiscal hawks amongst the Republicans and those resistant to

:12:02.:12:04.

the structural changes that the Trump administration are putting

:12:05.:12:06.

through and that's why we're having this reality check. We're seeing the

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oil price falling because of concerns about oversupply and the

:12:12.:12:18.

ineffectiveness of Opec. We had the inflation figures in UK which were

:12:19.:12:22.

stronger than expected. There is a picture emerging where people are

:12:23.:12:26.

parking their money in safer places? To an extent. You talked about the

:12:27.:12:35.

fall in the Nikkei. The strength of the yen has come through. Ultimately

:12:36.:12:40.

it is a case that until there is more clarity, than you may well find

:12:41.:12:44.

that investors retreat back to domestic markets, but we are in a

:12:45.:12:46.

world where interest rates are starting to move higher and that's

:12:47.:12:50.

causing markets to have to refocus on issues that they haven't been

:12:51.:12:54.

used for perhaps more than ten years. In the bond markets, prices

:12:55.:12:59.

are falling a lot following the interest rate rises. Yesterday,

:13:00.:13:01.

there was a little correction, wasn't there? I think what we have

:13:02.:13:05.

seen is investors have been betting with interest rates in terms of

:13:06.:13:10.

Government bonds. Government bond yields would move up dramatically.

:13:11.:13:14.

Some of the positions are becoming stale and frustrated and people are

:13:15.:13:19.

starting to take them off until there is clarity. We know that the

:13:20.:13:22.

hikes are still coming, but it is the pace and the trajectory of those

:13:23.:13:25.

which are causing markets and investors just to be frustrated and

:13:26.:13:28.

maybe just take some profit or reduce some of the risk. For now,

:13:29.:13:32.

Jeremy, thank you very much. He will return. Jeremy travels a lot to the

:13:33.:13:37.

Middle East and back and across the Atlantic so we'll get his take on

:13:38.:13:41.

this ban of electronic devices. And bring in some of your views as well.

:13:42.:13:46.

how one of the world's largest photo how one of the world's largest photo

:13:47.:13:51.

agencies stands out in the age of smartphone. You're with Business

:13:52.:13:53.

Live from BBC News. There's just a week to go until

:13:54.:14:01.

Britain's Prime Minister Theresa May formally starts the process

:14:02.:14:04.

of the UK's departure And there's another warning

:14:05.:14:06.

on an uncertain future for business. The non-financial services sector

:14:07.:14:13.

is at risk of "significant damage" if there is no free trade deal

:14:14.:14:18.

before the UK leaves the EU. That's according to

:14:19.:14:21.

the House of Lords. Lord Whitty, Chairman

:14:22.:14:24.

of the EU Internal Market The thing is, it is very difficult

:14:25.:14:33.

to establish how much damage could be done or not at all in fact

:14:34.:14:38.

because we haven't yet got the deal on the table. So there maybe these

:14:39.:14:43.

warnings, but are you saying that people aren't listening to you? No,

:14:44.:14:48.

we're not saying that. We're saying that the Government in their

:14:49.:14:52.

dealings in their aim to get a Free Trade Agreement need to get as close

:14:53.:14:56.

as possible to the conditions in which the services operate in an EU

:14:57.:14:59.

single marketment we are talking about a range of services from legal

:15:00.:15:06.

services through to music and travel arrangements, ravation so there is a

:15:07.:15:10.

whole range of sectors where actually the Brits are very

:15:11.:15:13.

competitive within Europe and they want to maintain that, but that will

:15:14.:15:16.

require specific deals for those sectors.

:15:17.:15:21.

How can you expect the specific deals for specific sectors to be

:15:22.:15:26.

addressed fully and for those involved to be engaged in the

:15:27.:15:30.

process? The Government are making an effort to find out the problems

:15:31.:15:35.

of each sector. But they need to be continuously engaged, because the

:15:36.:15:41.

arrangements will be complex, we do not know what the sequence of events

:15:42.:15:45.

will be, and there will be trade-offs and compromises. Some of

:15:46.:15:50.

the sectors are seriously worried, some are making contingency plans to

:15:51.:15:53.

operate in a different way within Europe, and all of them are on edge,

:15:54.:15:59.

looking at what is going to come out.

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Loads of other stories out there. Shall we lighten the tone? A plant

:16:08.:16:15.

in Coventry is to make a new type of London cab. It will look like that.

:16:16.:16:23.

The CEO of the London taxi company, owned by a Chinese company, says it

:16:24.:16:28.

is a brand-new look. Read more on our website.

:16:29.:16:33.

Airlines across the Middle East and North Africa are scrabbling to meet

:16:34.:16:44.

a deadline to enforce a ban on electronic devices in cabins,

:16:45.:16:49.

imposed by the United States and the UK. An unrelated shares in Turkey

:16:50.:16:51.

have already fallen. The markets are all falling,

:16:52.:17:04.

following the United States and Asia.

:17:05.:17:06.

And now, let's get the inside track on the photojournalism industry.

:17:07.:17:09.

With the widespread availability of high-quality but affordable

:17:10.:17:12.

cameras and equipment, the news industry is seeing

:17:13.:17:16.

a shift from professional to citizen-generated images.

:17:17.:17:21.

The market is crowded, with people like Reuters,

:17:22.:17:24.

Getty and Associated Press dominating the industry.

:17:25.:17:28.

But a study concluded that in the US the number of press photographers

:17:29.:17:32.

and videographers has fallen by almost half since the year 2000,

:17:33.:17:37.

from slightly more than 6,000 to now fewer than 3,500.

:17:38.:17:46.

With me is David Kogan, executive director of Magnum Photos.

:17:47.:17:57.

For those who have not heard of your organisation, which is iconic, has a

:17:58.:18:05.

long history, put them in the picture. In 1947 a group of

:18:06.:18:11.

photographers gathered after seven years of covering the Second World

:18:12.:18:16.

War, and they came together in New York, they opened a Magnum of

:18:17.:18:19.

champagne, and they created an agency where they would carry on

:18:20.:18:23.

doing their iconic work, but covering the world in turmoil. They

:18:24.:18:30.

created Magnum, and the agency was devoted then and now to ownership of

:18:31.:18:35.

our IP, covering great stories, having an elite group of

:18:36.:18:37.

photographers, different from citizen journalists, and covering

:18:38.:18:42.

the world as it existed then and today. We added strength to that, we

:18:43.:18:49.

now have artists rather than photojournalists, and would have a

:18:50.:18:54.

sizeable round and lineage, which we will sell a break in two months in

:18:55.:18:58.

New York, assumedly drinking magnums of champagne. The world is a game in

:18:59.:19:05.

turmoil, as perceived by many. Your industry has undergone a massive

:19:06.:19:09.

change, which has caused a change in what you offer and how you do your

:19:10.:19:13.

business. It is interesting when you mentioned the other organisations,

:19:14.:19:19.

almost all of the big ones depend on selling their images, licensing, but

:19:20.:19:24.

what we have done, although we have a licensing business and business to

:19:25.:19:30.

business, what we have always focused on is new work. The world

:19:31.:19:34.

has been in permanent turmoil, if you look at our archive and the work

:19:35.:19:39.

our photographers have done, they have been in conflict zones,

:19:40.:19:44.

covering stories, and the pictures you have flashed up cover a range of

:19:45.:19:49.

that, and it has been going on for 70 years. The issue is not so much

:19:50.:19:53.

what we are doing it, it is how we are getting it out to a different

:19:54.:19:57.

audience and different markets, where digital and smartphones has

:19:58.:20:01.

created a new group of people who are interested in photography, and

:20:02.:20:05.

that is a huge opportunity, and that is built real change. He talks about

:20:06.:20:14.

the fact that you have an elite group of photographers, and yet with

:20:15.:20:18.

this phrase of the Citizen journalism, many would argue the

:20:19.:20:20.

industry has been piloted. The elitism is something does having to

:20:21.:20:27.

change, you have got to embrace the shift from analogue to digital. How

:20:28.:20:33.

has that worked in your organisation and how have you managed to make it

:20:34.:20:37.

relevant to a brand-new growing audience and yet try to remain

:20:38.:20:43.

elite? If you look at the numbers, there are now something like nine to

:20:44.:20:50.

ten billion images uploaded every year, Instagram in December has 600

:20:51.:20:55.

million unique users every month. That is an enormous level of

:20:56.:21:00.

interest and population of people who take pictures, which 20 years

:21:01.:21:05.

ago did not exist. If you happen to own the greatest brand in

:21:06.:21:08.

photography, and we believe we do, and you have a group of

:21:09.:21:11.

photographers who are capable of producing extraordinary work, you

:21:12.:21:15.

have another Trinity as well as a challenge. We have launched a

:21:16.:21:24.

website that showcases our work, but the big change is we are now self

:21:25.:21:27.

commissioning, rather than the pending on magazines and newspapers

:21:28.:21:32.

who would pay a vast amount of money in the 60s, today they are not doing

:21:33.:21:37.

that, so we are self commissioning, we had 28 photographers covering the

:21:38.:21:40.

refugee story, we can create that work, showcase it, and sell it. But

:21:41.:21:47.

we are also creating a digital division, launching services to our

:21:48.:21:53.

audiences, those people on Instagram, and we are growing

:21:54.:21:57.

quickly, as people want to link in to talent and lineage. Fascinating,

:21:58.:22:03.

trying to bridge the different generations.

:22:04.:22:12.

With Theresa May expected to invoke Article 50 next week,

:22:13.:22:15.

kick-starting the process for the UK to leave the EU, BBC

:22:16.:22:21.

News asks if businesses are changing their strategies

:22:22.:22:24.

My name is Claudia Furst, I have my own company, Claud Furst.

:22:25.:22:31.

I have also been exporting my products to France,

:22:32.:22:40.

I have made the decision of moving my company,

:22:41.:22:46.

my manufacturing, to Italy, so I am buying in Italy,

:22:47.:22:51.

manufacturing in Italy, and shipping from Italy,

:22:52.:22:57.

It would be much more to purchase my materials in Italy,

:22:58.:23:05.

ship it over to the UK, manufacture in the UK

:23:06.:23:08.

That is a boss who is taking steps, making changes as a consequence of

:23:09.:23:25.

Brexit. Jeremy has returned, we will unpack further the story about the

:23:26.:23:30.

restrictions on travel, depending on where you are going. You go in and

:23:31.:23:34.

out of the Middle East often. It is fascinating, occurs Theo touched on

:23:35.:23:39.

something that is fascinating, the US ban includes come -- some of the

:23:40.:23:45.

major hub airports, which will impact on some of the global

:23:46.:23:49.

carriers. The security that you see as a traveller in those airports

:23:50.:23:56.

seems the same as elsewhere, so it is fascinating, the difference

:23:57.:24:00.

between the UK and interpretation of the rules. How will you get around

:24:01.:24:05.

it, or will you not be able to get around it? Which you have to put

:24:06.:24:11.

your stuff in the hold? Absolutely, the rules are as they have been set

:24:12.:24:16.

out currently. They may be subject to change, and it appears they are

:24:17.:24:20.

led by security led concerns, but if the rules are still in place, we

:24:21.:24:24.

will deal with them and all of the room of occasions. In terms of

:24:25.:24:30.

insurance, loss, etc. It is a scenario which will impact the

:24:31.:24:34.

business traveller as well as the tourist traveller. That is what we

:24:35.:24:39.

are getting through on Twitter, people responding to our question,

:24:40.:24:47.

is your luggage safe in the hold? Better by myself a bullet-proof case

:24:48.:24:52.

for my laptop, having seen how baggage handlers handled bikes, one

:24:53.:24:59.

person says. Another person says, they should consider their laptop

:25:00.:25:04.

100% compromised. Another person says, airlines have cut back on

:25:05.:25:07.

in-flight entertainment because people watch stuff on laptops. I

:25:08.:25:11.

have experienced baggage lost and things damaged, and I do not travel

:25:12.:25:16.

as much as you. Everybody has experienced that. There is always a

:25:17.:25:22.

risk. We see the suitcases being thrown around, especially the

:25:23.:25:28.

smaller airports. If you have a high-value electronic item, there is

:25:29.:25:31.

clearly risk, and an insurance element.

:25:32.:25:37.

There will be more business news throughout the day on the BBC Live

:25:38.:25:41.

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