17/05/2017

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:00:00. > :00:09.let us know your thoughts. Just use the hashtag, BBC Business Live the

:00:10. > :00:23.Today EU and US officials are meeting to discuss a potential

:00:24. > :00:25.extension of the laptop ban on aircraft.

:00:26. > :00:28.In March, the Trump administration imposed new restrictions

:00:29. > :00:29.which prevent US-bound travellers from carrying electronic devices

:00:30. > :00:34.larger than a mobile phone into the cabin.

:00:35. > :00:43.The original set of restrictions affected flights from eight mostly

:00:44. > :00:45.countries including Turkey, Egypt, the United Arab

:00:46. > :00:52.This affected many of the Gulf carriers including Emirates,

:00:53. > :00:55.Etihad and Qatar Airways, but now there are reports suggesting

:00:56. > :00:57.the ban could be extended to include some countries

:00:58. > :01:02.Any immediate changes would coincide with the peak

:01:03. > :01:13.This summer, more than 3,000 flights a week

:01:14. > :01:18.With me is Tom Jenkins, chief executive of the European Tour

:01:19. > :01:25.Welcome to the programme. Good morning. Sally running through some

:01:26. > :01:29.of the details there, but let's go back to the beginning because we

:01:30. > :01:34.know this ban was put in place. Lots of criticism about why it was

:01:35. > :01:41.necessary, what the rational for it. Talk us through it. Why are they not

:01:42. > :01:45.allowed on planes? Well, I think, it is because there is intelligence

:01:46. > :01:49.which the president in the United States was sharing with the Russians

:01:50. > :01:53.just the other day that there are some people who are being able to

:01:54. > :02:01.adapt laptop devices to explode on planes. But why, and again this was

:02:02. > :02:06.a criticism, why are they safer in the hold than the cabin? They are

:02:07. > :02:09.not. You have got, if you hold such intelligence, and you wish to share

:02:10. > :02:13.seen to be doing something. So this seen to be doing something. So this

:02:14. > :02:17.is grand standing on the part of some governments, some agencies to

:02:18. > :02:21.say look, we're doing something, we're not quite sure what it is,

:02:22. > :02:26.because we don't know if it makes it safer. They have that information

:02:27. > :02:30.and as ever with such people you've either got to do something or you're

:02:31. > :02:36.accused of ignoring what might be a problem. The big difficulty with

:02:37. > :02:40.this situation that we've got is that laptops are going to be

:02:41. > :02:47.dangerous, even if they're in a hold because there is dangers associated

:02:48. > :02:50.with lithium batteries which have a reputation for exploding, not very

:02:51. > :02:53.frequently, but there is a background danger of that happening.

:02:54. > :02:56.It is interesting because we have been told those are the things you

:02:57. > :03:05.can't pack in the hold. Up until the ban it was make sure you put these

:03:06. > :03:09.in the hold? It is an inversion of previous advice. We were told it

:03:10. > :03:14.wasn't safe to put them in the hold, we're told this is what you should

:03:15. > :03:16.be doing. Who stands to lose out, apart from passengers, because a lot

:03:17. > :03:19.of passengers will be inconvenienced? The principle

:03:20. > :03:23.commercial victims, if there is a backlash, will be the American

:03:24. > :03:28.carriers who carry the but k of peel across the labtic. The main --

:03:29. > :03:33.Atlantic. The main thing to emphasise, we shouldn't get too

:03:34. > :03:38.carried away about this. Business people like to use their laptops on

:03:39. > :03:42.board flights. Not many use their laptops on board flights. The main

:03:43. > :03:48.Venus Williams of this, I think, may well be children and people carrying

:03:49. > :03:52.children over the Atlantic for hom tablet devices are really important,

:03:53. > :03:54.pacifying device. Yeah, that's a really important point. It's

:03:55. > :03:58.interesting too because we know there was critively this was

:03:59. > :04:01.something instigated by the US Administration because they were

:04:02. > :04:07.unhappy with what they perceived to be unfair aid for Middle Eastern

:04:08. > :04:10.carriers, the likes of Emirates and this would affect US carriers as

:04:11. > :04:17.well so that flies in the face of that argument? Well, it would. The

:04:18. > :04:21.main issue really that we're facing. This is a huge switch of resources

:04:22. > :04:26.away from what they ought to be doing, if they're worried, is

:04:27. > :04:31.concentrating on individuals of interest as Border Agencies refer to

:04:32. > :04:34.them, and analysing abnormal behaviour amongst passengers towards

:04:35. > :04:37.blanket activity which is time scunling and disrupting. The other

:04:38. > :04:41.issue which will start to come into focus now is the fact that it is

:04:42. > :04:46.strange that they do all the controls, after you've left the

:04:47. > :04:50.aircraft. In America, and in Europe, you're only interviewed after you've

:04:51. > :04:54.left the aircraft and you've arrived on home soil. They would solve a lot

:04:55. > :04:58.of these problems if they started doing that before you get on the

:04:59. > :05:01.aircraft. That gets us into the argument about who is grand standing

:05:02. > :05:05.and who is making the statement about security. Tom, we could talk

:05:06. > :05:10.all day. Tom, really good it talk to you.

:05:11. > :05:13.Let's take a look at some of the other stories making the news.

:05:14. > :05:16.Lloyds is back in private hands after the UK Government

:05:17. > :05:22.At the height of the financial crisis, the Government ploughed

:05:23. > :05:26.$25 billion into Lloyds and owned a 43% share.

:05:27. > :05:29.The boss of Lloyds told the BBC the bank is now "one

:05:30. > :05:39.The Government still owns 73% of RBS which was also bailed out

:05:40. > :05:44.Twitter co-founder Biz Stone says he will rejoin the social media

:05:45. > :05:46.company in the next few weeks after fellow co-founder

:05:47. > :05:52.Jack Dorsey was brought back as chief executive in 2015.

:05:53. > :05:55.Mr Dorsey has been trying to revive Twitter which says it has more

:05:56. > :05:57.than 300 million monthly users, but still struggles

:05:58. > :06:04.A pair of diamond earrings has been sold for a record price

:06:05. > :06:08.The flawless pear-shaped diamonds - one pink, the other blue -

:06:09. > :06:13.fetched a combined price of $57.4 million.

:06:14. > :06:15.The pear-shaped jewels, nicknamed Apollo and Artemis,

:06:16. > :06:32.Reports say the earrings were bought by an anonymous buyer.

:06:33. > :06:43.It was you that bid for them. I put in my $57 bid and I didn't get far.

:06:44. > :06:47.You were outbid. Just a little bit. Justify a few million.

:06:48. > :06:49.Universal Music has signed a deal with the Chinese

:06:50. > :06:51.internet company Tencent, to try and expand their reach

:06:52. > :06:57.into China Stephen McDonnell is in Beijing.

:06:58. > :07:04.Tell us more about this. It is an interesting development? Well, it is

:07:05. > :07:10.potentially an enormous deal for Universal Music. Imagine how big the

:07:11. > :07:20.pool of potential music users there are in China. So, it's hooked up

:07:21. > :07:24.with Tencent, but the really crucial thing as to whether or not this is

:07:25. > :07:30.going to be a good deal or not is whether or not Tencent can continue

:07:31. > :07:33.to wean Chinese people off free music. There are basically three

:07:34. > :07:37.types of people who listen to music in China. Those listening to pirated

:07:38. > :07:43.muse UK, those who are paying and then crucially this big group in the

:07:44. > :07:47.middle who are using Tencent's music for example on their phone and

:07:48. > :07:52.perfectly legally listening to free music. Tencent has been trying to

:07:53. > :07:57.get people to pay by saying OK, you listen to that band's song, but here

:07:58. > :08:01.is another song by them, and if you want that song, you've got to pay or

:08:02. > :08:07.do you want a better quality version of that song? This is like there are

:08:08. > :08:11.only # #15 million, who are paying for this service and around 600

:08:12. > :08:15.million Chinese people every month listening for free. So the crucial

:08:16. > :08:20.thing is, can they continue to get people to pay? And if so, well,

:08:21. > :08:24.eventually, it probably will be a good deal for Universal Music. All

:08:25. > :08:30.right, we will keep an eye. Steve, thank you very much indeed. Let's

:08:31. > :08:35.look at markets in Asia. I have to say, it was all down as you can see.

:08:36. > :08:38.A lot of that is to do with investors around the world getting

:08:39. > :08:42.very concerned about what is going on in the White House and in the

:08:43. > :08:47.Trump administration in particular. Allegations that have come through

:08:48. > :08:52.day after day in recent days are really concerning investors around

:08:53. > :08:55.the world about how vulnerable the US Government or the Trump

:08:56. > :09:00.administration is. So, in Japan, we saw losses because the yen got

:09:01. > :09:06.stronger. . It is seen as a safe haven. The price of gold went up.

:09:07. > :09:10.Exporters in Tokyo had a tough time today, that was the Dow the night

:09:11. > :09:13.before. Light losses on Wall Street the night before. Nothing to be too

:09:14. > :09:17.concerned about. Let's look at Europe now. Again a record close for

:09:18. > :09:21.the FTSE on Monday. It's down, just a little bit, but still, doing

:09:22. > :09:27.extremely well. Markets across Europe just down a tad. Let's now

:09:28. > :09:29.have a look at head to what's going on on Wall Street. Samira has the

:09:30. > :09:37.details. Target is reporting. It warned

:09:38. > :09:41.investors about lower profits this quarter and has said it will lower

:09:42. > :09:44.prices to try and compete with companies like Wal-Mart and

:09:45. > :09:50.that will be reporting on Wednesday that will be reporting on Wednesday

:09:51. > :09:55.is American Eagle. Weak demand for its men's line and continued

:09:56. > :10:00.softness in traffic will likely impact sales and finally, Sisco

:10:01. > :10:05.Systems, the world's largest networking gear maker. They will be

:10:06. > :10:10.reporting earnings. The company has been hurt by sluggish demand for its

:10:11. > :10:13.equipment business and Sisco have been doubling down on areas such as

:10:14. > :10:18.security, the internet of things and cloud computing. Internet security,

:10:19. > :10:19.something that's taken on some heightened importance in recent

:10:20. > :10:22.days. Joining us is Alix Stewart, fixed

:10:23. > :10:31.income fund manager at Schroders. Good morning. Good morning. Let's

:10:32. > :10:40.talk about Lloyds. We mentioned it there in the round-up of other news

:10:41. > :10:45.the. It is a significant day. It is back into private hands? Finally the

:10:46. > :10:50.post financial crisis seems to be behind Lloyds anyway or the

:10:51. > :10:54.Government ownership of it as finally the taxpayers get their

:10:55. > :10:58.money back. Returned to private hands and the taxpayer makes a

:10:59. > :11:03.profit on it. So in that sense it has been good, but it all came about

:11:04. > :11:07.because Lloyds was in a decent financial position already been it

:11:08. > :11:11.got into the bail out? It was a well run bank before the financial crisis

:11:12. > :11:15.and wasn't one of those that was in danger, but they bought HBOS which

:11:16. > :11:19.had a load of issues and what they have been doing is putting all that

:11:20. > :11:23.right since then and this is the end of the process as far as that's

:11:24. > :11:26.concerned. So different to the fortunes for RBS though because it

:11:27. > :11:30.was in a similar position. It got a bail out out at the height of the

:11:31. > :11:33.financial crisis, but it is # 3%, I think, owned by taxpayers, such a

:11:34. > :11:38.contrast between RBS and Lloyds? Such a contrast because RBS weren't

:11:39. > :11:41.a well run bank and we can see with the number of fines that they are

:11:42. > :11:47.getting hit with the and the issues that they have now that it has taken

:11:48. > :11:58.them longer to recover. The boss of Lloyds bank, he has been grilled on

:11:59. > :12:01.the radio, BBC Radio Today, it's on our Business Live page. It's over

:12:02. > :12:03.there, the interview with him and what he has been saying about.

:12:04. > :12:11.Interesting comments about executive pay that he was making. So have a

:12:12. > :12:18.read at that. To look ahead, the FTSE 100 down slightly. We've got

:12:19. > :12:22.unemployment figures out in the UK, shortly. Thoughts? They are expected

:12:23. > :12:27.to be a low level. The thing about obviously employment in the UK as we

:12:28. > :12:29.have seen is a lot has been self-employed and zero hours

:12:30. > :12:34.contracts. The big question going forward is whether, you know, this

:12:35. > :12:38.level of unemployment actually leads to wage rises that worry the Bank of

:12:39. > :12:43.England. And those wage rises are the bit we are all feeling because

:12:44. > :12:46.inflation rising yesterday, we've got less money in our pocket. It's

:12:47. > :12:50.not keeping up with inflation, is it? Consumers are feeling squeezed

:12:51. > :12:57.and we're beginning to see that in the retail data now. One for us to

:12:58. > :12:59.watch. Those figures out at 9.30am. Alix, thank you.

:13:00. > :13:04.Still to come, rogue landlords and dodgy digs.

:13:05. > :13:07.Why one app wants to change the way students find somewhere to live

:13:08. > :13:21.You're with Business Live from BBC News.

:13:22. > :13:27.The Government has confirmed that its remaining shares

:13:28. > :13:32.in Lloyds Banking Group have been sold eight years after pumping

:13:33. > :13:39.At the height of the financial crisis taxpayers

:13:40. > :13:51.Our Business Editor Simon Jack is in the business newsroom.

:13:52. > :13:58.Simon, it does mark the end of the year as virus that bailout is

:13:59. > :14:03.concerned. Yes. Almost nine years ago the taxpayer put in ?20.3

:14:04. > :14:10.billion. That has now been repaid in full, with a small profit, nearly

:14:11. > :14:13.?900 million paid more than put in. It is not a fantastic return on an

:14:14. > :14:18.investment over nearly a decade but this wasn't an investment, this was

:14:19. > :14:23.a rescue of a bank, Lloyds bank, which made a bad situation much

:14:24. > :14:26.worse by agreeing to take over HBOS, which had made a lot of toxic

:14:27. > :14:29.commercial loans, relying on when the money, which all dried up in the

:14:30. > :14:37.credit carnage, and saw multi-million pound -- multi-billion

:14:38. > :14:42.pound losses. The Chief Executive celebrated returning all that money.

:14:43. > :14:45.It has been a very difficult road. ?17 billion paid out in payment

:14:46. > :14:51.protection insurance, criminal fraud in some of the HBOS branches,

:14:52. > :14:54.particularly in Reading. It hasn't been an easy road. Now they are

:14:55. > :15:00.there, the question is what happens now? They expect the shareholders to

:15:01. > :15:03.do normal things like try to increase profits, grow revenue, and

:15:04. > :15:09.they have really reach wrenched into the UK. There are some headwinds

:15:10. > :15:17.facing them, very exposed the consumer and retail banking. As you

:15:18. > :15:21.mentioned, it will begin to eat into consumers ability to pay an for

:15:22. > :15:26.additional credit. Some problems they have to face, and the end of an

:15:27. > :15:29.era. I remember it at the time, ?20.3 billion, no one thought it

:15:30. > :15:33.would take this long to come back. The government will be pleased but

:15:34. > :15:38.it is some UN and some you lose. Remember they are still very much in

:15:39. > :15:41.the red on their stake on RBS. It could be on the government books for

:15:42. > :15:44.many years to come unless they are prepared to sell at a loss, which

:15:45. > :15:50.the Chancellor said recently he might be prepared to do. Some you

:15:51. > :15:52.win, some you lose. Thank you, lots more online to read when you have a

:15:53. > :15:58.moment. Our top story today,

:15:59. > :16:07.EU and US officials are meeting to discuss a potential extension

:16:08. > :16:10.of the laptop ban on aircrafts. The original set of restrictions

:16:11. > :16:15.affected flights from eight mostly mostly Muslim countries,

:16:16. > :16:17.including Turkey, Egypt, the United Arab Emirates

:16:18. > :16:19.and Saudi Arabia but now there are reports suggesting

:16:20. > :16:22.that the ban could be extended to include some countries

:16:23. > :16:33.within the EU. One analyst I spoke to said it will

:16:34. > :16:37.be the whole of Europe. And as we were talking with our guest earlier,

:16:38. > :16:48.the problem is of course we tend to think of it just bought business

:16:49. > :16:53.travellers with laptops. A lot of you getting in touch saying it is

:16:54. > :16:57.families with tablets as well. Andrew says it is not a problem

:16:58. > :17:01.having a laptop on a plane, it is the safety in the hold and lack of

:17:02. > :17:06.insurance for any damage and theft in the hold. A similar theme from

:17:07. > :17:17.Claude, as long as the airlines replace the ones they damage in

:17:18. > :17:20.transit. Some airlines, particularly Emirates, are trialling a system

:17:21. > :17:24.whereby you can lock it up as you get on the plane, which then goes

:17:25. > :17:28.into the hold. Daniel says they just need better movies on flights. Maude

:17:29. > :17:36.says she cannot live without her candle. She got mentioned twice!

:17:37. > :17:43.Eddie says keep the drinks flowing, I am with him. Drinking on planes.

:17:44. > :17:50.Let's move on. You may well have been a student or

:17:51. > :17:54.you may be one right now, or you are the parent of a student, well listen

:17:55. > :17:58.up, because you may well know very well it is very difficult and often

:17:59. > :18:02.quite stressful to find somewhere to live at eight college or university

:18:03. > :18:07.and it can be a bit of a gamble at times. I know it all too well.

:18:08. > :18:20.The number of university level students studying abroad has more

:18:21. > :18:23.than doubled since the turn of the century to reach 4.1 million.

:18:24. > :18:25.The number one destination is the United States

:18:26. > :18:28.That's followed by the UK with almost half a million

:18:29. > :18:32.Figures for the UK suggest the average international student

:18:33. > :18:33.spends $18,000 a year, excluding tuition fees.

:18:34. > :18:35.A large part of that goes on accomodation.

:18:36. > :18:38.Student dot com is a website that helps those students find

:18:39. > :18:40.somewhere to live in more than 400 cities worldwide.

:18:41. > :18:43.Luke Nolan is the co-founder and Chief Executive of Student.com

:18:44. > :18:51.He is with us now. Nice to see you. Morning, Luke. We can see the need.

:18:52. > :18:55.I could have used this as a student, trying to find somewhere to live. I

:18:56. > :18:58.was back at my university city this week, looking at where I used to

:18:59. > :19:02.live, and some places were pretty dreadful, but this is a way of

:19:03. > :19:09.matching beds and runs the students. How did the idea come about? Good

:19:10. > :19:12.question. I had been living in China already for about six or seven

:19:13. > :19:16.years, and spent a lot of time doing business with Chinese live the

:19:17. > :19:20.country. The question that kept cropping up was my son or daughter

:19:21. > :19:23.is studying abroad, where should they live? Very often, with the

:19:24. > :19:25.explosion of international student number is around the world,

:19:26. > :19:32.universities haven't been able to build more housing. So people are

:19:33. > :19:35.looking for a self -- a safe and comfortable place to live with great

:19:36. > :19:40.people. It always used to be guarantee that if you went to

:19:41. > :19:44.university in many countries you would be guaranteed at least for the

:19:45. > :19:46.first year to be living in university accommodation but so much

:19:47. > :19:51.has been farmed out to the private sector that is not always the case.

:19:52. > :19:56.Correct. It is not always possible for them. You started this in 2011

:19:57. > :19:59.and it was very focused on students coming from China to other

:20:00. > :20:04.countries. But now, as we have mentioned, you are in 400 cities

:20:05. > :20:09.around the world. How do you manage that? It sounds like a colossal

:20:10. > :20:14.task, especially to guarantee that those landlords that are providing

:20:15. > :20:18.the accommodation are OK? Very interesting point, in fact it is

:20:19. > :20:21.very important for us to align ourselves with high-quality

:20:22. > :20:24.landlords, who care just like we do about the safekeeping and well-being

:20:25. > :20:29.of students, and the whole student experience. So we spent a lot of

:20:30. > :20:34.time, it is time consuming but it is something we care deeply about.

:20:35. > :20:38.Where do you make money? The service is free for students, we make money

:20:39. > :20:42.from our landlord partners. Our landlords are looking for access to

:20:43. > :20:48.the market to students on a global level, so we take a margin from the

:20:49. > :20:52.rent that the student pays. And in terms of the logistics of it all,

:20:53. > :20:55.you say you take great care in making sure the landlords are all

:20:56. > :21:03.right and anything else, talk health that works? You have about hundred

:21:04. > :21:06.staff? We have about 180 people in 19 locations, split between our

:21:07. > :21:10.source countries and our destinations. So it is indeed

:21:11. > :21:14.relatively time-consuming but it is an important part of our business

:21:15. > :21:17.model. You have had a lot of investment, over $70 million has

:21:18. > :21:23.been ploughed into your company. Has anyone looked at you thinking, we

:21:24. > :21:27.want to buy you? Great question. We get approached a lot, in terms of

:21:28. > :21:30.discussions about all kinds of investment. Me, personally, as the

:21:31. > :21:34.founder of course I'm having the best time of my life building this

:21:35. > :21:38.business. I run the company as if I'm going to run it for ever, but of

:21:39. > :21:44.course strategic discussions are always interesting to have. Best of

:21:45. > :21:49.luck, Luke Nolan, chief exec of student .com. Plenty more to come

:21:50. > :21:53.come stay with us. This is how to stay in touch. The Business Live

:21:54. > :22:08.pages where you can stay ahead with all the day's breaking news.

:22:09. > :22:30.Alec Stewart is back with us. Nice to see you. We will stay with the

:22:31. > :22:35.student theme we were just discussing. A great story in the

:22:36. > :22:38.Washington Post, five tips for millennials want to buy a house.

:22:39. > :22:41.This all came about because an Australian millionaire said to many

:22:42. > :22:47.young people want everything, they want a holiday, nice cars, to be

:22:48. > :22:51.able to buy everything every day and then they whinge about not being up

:22:52. > :22:55.to afford a house. He has a point, doesn't he? I am not sure that

:22:56. > :22:58.cutting back on your coffee will make up for the fact that rents have

:22:59. > :23:01.gone up such a large amount and that you don't get any interest on your

:23:02. > :23:08.savings these days. So it is harder for young people now. Much harder.

:23:09. > :23:11.They say they have student debts, high housing costs, nowhere to put

:23:12. > :23:18.our money that makes a return, they say are only escape is burning money

:23:19. > :23:22.on Kofi. And avocado on toast apparently. The so-called snowflake

:23:23. > :23:28.generation, will you explain? I have educated both of you this morning.

:23:29. > :23:34.The assumption that young people, at the first sign of trouble melts, or

:23:35. > :23:37.they find any hurdle in their way. Is this the generation following

:23:38. > :23:40.millennials? I think it is all part of it. Just for the record I don't

:23:41. > :23:44.agree with because I think young people have it tough in many places.

:23:45. > :23:48.But it is interesting, because there is so much coverage of what young

:23:49. > :24:01.people are facing, in terms of challenges. The bank of mum and dad

:24:02. > :24:04.is one of the top lenders out there. And having to stay at home a lot

:24:05. > :24:09.longer and having to share a house with people you probably wouldn't

:24:10. > :24:12.want to. It is tough on these days. On that depressing note, thank you

:24:13. > :24:16.for talking through all of that. That is it from us on the show, we

:24:17. > :24:29.will be back tomorrow. See you soon, goodbye.

:24:30. > :24:33.The warmest day of the year so far yesterday, 26 degrees across the

:24:34. > :24:35.south-east. Things