17/05/2017 BBC Business Live


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17/05/2017

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let us know your thoughts. Just use the hashtag, BBC Business Live the

:00:00.:00:09.

Today EU and US officials are meeting to discuss a potential

:00:10.:00:23.

extension of the laptop ban on aircraft.

:00:24.:00:25.

In March, the Trump administration imposed new restrictions

:00:26.:00:28.

which prevent US-bound travellers from carrying electronic devices

:00:29.:00:29.

larger than a mobile phone into the cabin.

:00:30.:00:34.

The original set of restrictions affected flights from eight mostly

:00:35.:00:43.

countries including Turkey, Egypt, the United Arab

:00:44.:00:45.

This affected many of the Gulf carriers including Emirates,

:00:46.:00:52.

Etihad and Qatar Airways, but now there are reports suggesting

:00:53.:00:55.

the ban could be extended to include some countries

:00:56.:00:57.

Any immediate changes would coincide with the peak

:00:58.:01:02.

This summer, more than 3,000 flights a week

:01:03.:01:13.

With me is Tom Jenkins, chief executive of the European Tour

:01:14.:01:18.

Welcome to the programme. Good morning. Sally running through some

:01:19.:01:25.

of the details there, but let's go back to the beginning because we

:01:26.:01:29.

know this ban was put in place. Lots of criticism about why it was

:01:30.:01:34.

necessary, what the rational for it. Talk us through it. Why are they not

:01:35.:01:41.

allowed on planes? Well, I think, it is because there is intelligence

:01:42.:01:45.

which the president in the United States was sharing with the Russians

:01:46.:01:49.

just the other day that there are some people who are being able to

:01:50.:01:53.

adapt laptop devices to explode on planes. But why, and again this was

:01:54.:02:01.

a criticism, why are they safer in the hold than the cabin? They are

:02:02.:02:06.

not. You have got, if you hold such intelligence, and you wish to share

:02:07.:02:09.

seen to be doing something. So this seen to be doing something. So this

:02:10.:02:13.

is grand standing on the part of some governments, some agencies to

:02:14.:02:17.

say look, we're doing something, we're not quite sure what it is,

:02:18.:02:21.

because we don't know if it makes it safer. They have that information

:02:22.:02:26.

and as ever with such people you've either got to do something or you're

:02:27.:02:30.

accused of ignoring what might be a problem. The big difficulty with

:02:31.:02:36.

this situation that we've got is that laptops are going to be

:02:37.:02:40.

dangerous, even if they're in a hold because there is dangers associated

:02:41.:02:47.

with lithium batteries which have a reputation for exploding, not very

:02:48.:02:50.

frequently, but there is a background danger of that happening.

:02:51.:02:53.

It is interesting because we have been told those are the things you

:02:54.:02:56.

can't pack in the hold. Up until the ban it was make sure you put these

:02:57.:03:05.

in the hold? It is an inversion of previous advice. We were told it

:03:06.:03:09.

wasn't safe to put them in the hold, we're told this is what you should

:03:10.:03:14.

be doing. Who stands to lose out, apart from passengers, because a lot

:03:15.:03:16.

of passengers will be inconvenienced? The principle

:03:17.:03:19.

commercial victims, if there is a backlash, will be the American

:03:20.:03:23.

carriers who carry the but k of peel across the labtic. The main --

:03:24.:03:28.

Atlantic. The main thing to emphasise, we shouldn't get too

:03:29.:03:33.

carried away about this. Business people like to use their laptops on

:03:34.:03:38.

board flights. Not many use their laptops on board flights. The main

:03:39.:03:42.

Venus Williams of this, I think, may well be children and people carrying

:03:43.:03:48.

children over the Atlantic for hom tablet devices are really important,

:03:49.:03:52.

pacifying device. Yeah, that's a really important point. It's

:03:53.:03:54.

interesting too because we know there was critively this was

:03:55.:03:58.

something instigated by the US Administration because they were

:03:59.:04:01.

unhappy with what they perceived to be unfair aid for Middle Eastern

:04:02.:04:07.

carriers, the likes of Emirates and this would affect US carriers as

:04:08.:04:10.

well so that flies in the face of that argument? Well, it would. The

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main issue really that we're facing. This is a huge switch of resources

:04:18.:04:21.

away from what they ought to be doing, if they're worried, is

:04:22.:04:26.

concentrating on individuals of interest as Border Agencies refer to

:04:27.:04:31.

them, and analysing abnormal behaviour amongst passengers towards

:04:32.:04:34.

blanket activity which is time scunling and disrupting. The other

:04:35.:04:37.

issue which will start to come into focus now is the fact that it is

:04:38.:04:41.

strange that they do all the controls, after you've left the

:04:42.:04:46.

aircraft. In America, and in Europe, you're only interviewed after you've

:04:47.:04:50.

left the aircraft and you've arrived on home soil. They would solve a lot

:04:51.:04:54.

of these problems if they started doing that before you get on the

:04:55.:04:58.

aircraft. That gets us into the argument about who is grand standing

:04:59.:05:01.

and who is making the statement about security. Tom, we could talk

:05:02.:05:05.

all day. Tom, really good it talk to you.

:05:06.:05:10.

Let's take a look at some of the other stories making the news.

:05:11.:05:13.

Lloyds is back in private hands after the UK Government

:05:14.:05:16.

At the height of the financial crisis, the Government ploughed

:05:17.:05:22.

$25 billion into Lloyds and owned a 43% share.

:05:23.:05:26.

The boss of Lloyds told the BBC the bank is now "one

:05:27.:05:29.

The Government still owns 73% of RBS which was also bailed out

:05:30.:05:39.

Twitter co-founder Biz Stone says he will rejoin the social media

:05:40.:05:44.

company in the next few weeks after fellow co-founder

:05:45.:05:46.

Jack Dorsey was brought back as chief executive in 2015.

:05:47.:05:52.

Mr Dorsey has been trying to revive Twitter which says it has more

:05:53.:05:55.

than 300 million monthly users, but still struggles

:05:56.:05:57.

A pair of diamond earrings has been sold for a record price

:05:58.:06:04.

The flawless pear-shaped diamonds - one pink, the other blue -

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fetched a combined price of $57.4 million.

:06:09.:06:13.

The pear-shaped jewels, nicknamed Apollo and Artemis,

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Reports say the earrings were bought by an anonymous buyer.

:06:16.:06:32.

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

:06:33.:06:43.

You were outbid. Just a little bit. Justify a few million.

:06:44.:06:47.

Universal Music has signed a deal with the Chinese

:06:48.:06:49.

internet company Tencent, to try and expand their reach

:06:50.:06:51.

into China Stephen McDonnell is in Beijing.

:06:52.:06:57.

Tell us more about this. It is an interesting development? Well, it is

:06:58.:07:04.

potentially an enormous deal for Universal Music. Imagine how big the

:07:05.:07:10.

pool of potential music users there are in China. So, it's hooked up

:07:11.:07:20.

with Tencent, but the really crucial thing as to whether or not this is

:07:21.:07:24.

going to be a good deal or not is whether or not Tencent can continue

:07:25.:07:30.

to wean Chinese people off free music. There are basically three

:07:31.:07:33.

types of people who listen to music in China. Those listening to pirated

:07:34.:07:37.

muse UK, those who are paying and then crucially this big group in the

:07:38.:07:43.

middle who are using Tencent's music for example on their phone and

:07:44.:07:47.

perfectly legally listening to free music. Tencent has been trying to

:07:48.:07:52.

get people to pay by saying OK, you listen to that band's song, but here

:07:53.:07:57.

is another song by them, and if you want that song, you've got to pay or

:07:58.:08:01.

do you want a better quality version of that song? This is like there are

:08:02.:08:07.

only # #15 million, who are paying for this service and around 600

:08:08.:08:11.

million Chinese people every month listening for free. So the crucial

:08:12.:08:15.

thing is, can they continue to get people to pay? And if so, well,

:08:16.:08:20.

eventually, it probably will be a good deal for Universal Music. All

:08:21.:08:24.

right, we will keep an eye. Steve, thank you very much indeed. Let's

:08:25.:08:30.

look at markets in Asia. I have to say, it was all down as you can see.

:08:31.:08:35.

A lot of that is to do with investors around the world getting

:08:36.:08:38.

very concerned about what is going on in the White House and in the

:08:39.:08:42.

Trump administration in particular. Allegations that have come through

:08:43.:08:47.

day after day in recent days are really concerning investors around

:08:48.:08:52.

the world about how vulnerable the US Government or the Trump

:08:53.:08:55.

administration is. So, in Japan, we saw losses because the yen got

:08:56.:09:00.

stronger. . It is seen as a safe haven. The price of gold went up.

:09:01.:09:06.

Exporters in Tokyo had a tough time today, that was the Dow the night

:09:07.:09:10.

before. Light losses on Wall Street the night before. Nothing to be too

:09:11.:09:13.

concerned about. Let's look at Europe now. Again a record close for

:09:14.:09:17.

the FTSE on Monday. It's down, just a little bit, but still, doing

:09:18.:09:21.

extremely well. Markets across Europe just down a tad. Let's now

:09:22.:09:27.

have a look at head to what's going on on Wall Street. Samira has the

:09:28.:09:29.

details. Target is reporting. It warned

:09:30.:09:37.

investors about lower profits this quarter and has said it will lower

:09:38.:09:41.

prices to try and compete with companies like Wal-Mart and

:09:42.:09:44.

that will be reporting on Wednesday that will be reporting on Wednesday

:09:45.:09:50.

is American Eagle. Weak demand for its men's line and continued

:09:51.:09:55.

softness in traffic will likely impact sales and finally, Sisco

:09:56.:10:00.

Systems, the world's largest networking gear maker. They will be

:10:01.:10:05.

reporting earnings. The company has been hurt by sluggish demand for its

:10:06.:10:10.

equipment business and Sisco have been doubling down on areas such as

:10:11.:10:13.

security, the internet of things and cloud computing. Internet security,

:10:14.:10:18.

something that's taken on some heightened importance in recent

:10:19.:10:19.

days. Joining us is Alix Stewart, fixed

:10:20.:10:22.

income fund manager at Schroders. Good morning. Good morning. Let's

:10:23.:10:31.

talk about Lloyds. We mentioned it there in the round-up of other news

:10:32.:10:40.

the. It is a significant day. It is back into private hands? Finally the

:10:41.:10:45.

post financial crisis seems to be behind Lloyds anyway or the

:10:46.:10:50.

Government ownership of it as finally the taxpayers get their

:10:51.:10:54.

money back. Returned to private hands and the taxpayer makes a

:10:55.:10:58.

profit on it. So in that sense it has been good, but it all came about

:10:59.:11:03.

because Lloyds was in a decent financial position already been it

:11:04.:11:07.

got into the bail out? It was a well run bank before the financial crisis

:11:08.:11:11.

and wasn't one of those that was in danger, but they bought HBOS which

:11:12.:11:15.

had a load of issues and what they have been doing is putting all that

:11:16.:11:19.

right since then and this is the end of the process as far as that's

:11:20.:11:23.

concerned. So different to the fortunes for RBS though because it

:11:24.:11:26.

was in a similar position. It got a bail out out at the height of the

:11:27.:11:30.

financial crisis, but it is # 3%, I think, owned by taxpayers, such a

:11:31.:11:33.

contrast between RBS and Lloyds? Such a contrast because RBS weren't

:11:34.:11:38.

a well run bank and we can see with the number of fines that they are

:11:39.:11:41.

getting hit with the and the issues that they have now that it has taken

:11:42.:11:47.

them longer to recover. The boss of Lloyds bank, he has been grilled on

:11:48.:11:58.

the radio, BBC Radio Today, it's on our Business Live page. It's over

:11:59.:12:01.

there, the interview with him and what he has been saying about.

:12:02.:12:03.

Interesting comments about executive pay that he was making. So have a

:12:04.:12:11.

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

:12:12.:12:18.

unemployment figures out in the UK, shortly. Thoughts? They are expected

:12:19.:12:22.

to be a low level. The thing about obviously employment in the UK as we

:12:23.:12:27.

have seen is a lot has been self-employed and zero hours

:12:28.:12:29.

contracts. The big question going forward is whether, you know, this

:12:30.:12:34.

level of unemployment actually leads to wage rises that worry the Bank of

:12:35.:12:38.

England. And those wage rises are the bit we are all feeling because

:12:39.:12:43.

inflation rising yesterday, we've got less money in our pocket. It's

:12:44.:12:46.

not keeping up with inflation, is it? Consumers are feeling squeezed

:12:47.:12:50.

and we're beginning to see that in the retail data now. One for us to

:12:51.:12:57.

watch. Those figures out at 9.30am. Alix, thank you.

:12:58.:12:59.

Still to come, rogue landlords and dodgy digs.

:13:00.:13:04.

Why one app wants to change the way students find somewhere to live

:13:05.:13:07.

You're with Business Live from BBC News.

:13:08.:13:21.

The Government has confirmed that its remaining shares

:13:22.:13:27.

in Lloyds Banking Group have been sold eight years after pumping

:13:28.:13:32.

At the height of the financial crisis taxpayers

:13:33.:13:39.

Our Business Editor Simon Jack is in the business newsroom.

:13:40.:13:51.

Simon, it does mark the end of the year as virus that bailout is

:13:52.:13:58.

concerned. Yes. Almost nine years ago the taxpayer put in ?20.3

:13:59.:14:03.

billion. That has now been repaid in full, with a small profit, nearly

:14:04.:14:10.

?900 million paid more than put in. It is not a fantastic return on an

:14:11.:14:13.

investment over nearly a decade but this wasn't an investment, this was

:14:14.:14:18.

a rescue of a bank, Lloyds bank, which made a bad situation much

:14:19.:14:23.

worse by agreeing to take over HBOS, which had made a lot of toxic

:14:24.:14:26.

commercial loans, relying on when the money, which all dried up in the

:14:27.:14:29.

credit carnage, and saw multi-million pound -- multi-billion

:14:30.:14:37.

pound losses. The Chief Executive celebrated returning all that money.

:14:38.:14:42.

It has been a very difficult road. ?17 billion paid out in payment

:14:43.:14:45.

protection insurance, criminal fraud in some of the HBOS branches,

:14:46.:14:51.

particularly in Reading. It hasn't been an easy road. Now they are

:14:52.:14:54.

there, the question is what happens now? They expect the shareholders to

:14:55.:15:00.

do normal things like try to increase profits, grow revenue, and

:15:01.:15:03.

they have really reach wrenched into the UK. There are some headwinds

:15:04.:15:09.

facing them, very exposed the consumer and retail banking. As you

:15:10.:15:17.

mentioned, it will begin to eat into consumers ability to pay an for

:15:18.:15:21.

additional credit. Some problems they have to face, and the end of an

:15:22.:15:26.

era. I remember it at the time, ?20.3 billion, no one thought it

:15:27.:15:29.

would take this long to come back. The government will be pleased but

:15:30.:15:33.

it is some UN and some you lose. Remember they are still very much in

:15:34.:15:38.

the red on their stake on RBS. It could be on the government books for

:15:39.:15:41.

many years to come unless they are prepared to sell at a loss, which

:15:42.:15:44.

the Chancellor said recently he might be prepared to do. Some you

:15:45.:15:50.

win, some you lose. Thank you, lots more online to read when you have a

:15:51.:15:52.

moment. Our top story today,

:15:53.:15:58.

EU and US officials are meeting to discuss a potential extension

:15:59.:16:07.

of the laptop ban on aircrafts. The original set of restrictions

:16:08.:16:10.

affected flights from eight mostly mostly Muslim countries,

:16:11.:16:15.

including Turkey, Egypt, the United Arab Emirates

:16:16.:16:17.

and Saudi Arabia but now there are reports suggesting

:16:18.:16:19.

that the ban could be extended to include some countries

:16:20.:16:22.

within the EU. One analyst I spoke to said it will

:16:23.:16:33.

be the whole of Europe. And as we were talking with our guest earlier,

:16:34.:16:37.

the problem is of course we tend to think of it just bought business

:16:38.:16:48.

travellers with laptops. A lot of you getting in touch saying it is

:16:49.:16:53.

families with tablets as well. Andrew says it is not a problem

:16:54.:16:57.

having a laptop on a plane, it is the safety in the hold and lack of

:16:58.:17:01.

insurance for any damage and theft in the hold. A similar theme from

:17:02.:17:06.

Claude, as long as the airlines replace the ones they damage in

:17:07.:17:17.

transit. Some airlines, particularly Emirates, are trialling a system

:17:18.:17:20.

whereby you can lock it up as you get on the plane, which then goes

:17:21.:17:24.

into the hold. Daniel says they just need better movies on flights. Maude

:17:25.:17:28.

says she cannot live without her candle. She got mentioned twice!

:17:29.:17:36.

Eddie says keep the drinks flowing, I am with him. Drinking on planes.

:17:37.:17:43.

Let's move on. You may well have been a student or

:17:44.:17:50.

you may be one right now, or you are the parent of a student, well listen

:17:51.:17:54.

up, because you may well know very well it is very difficult and often

:17:55.:17:58.

quite stressful to find somewhere to live at eight college or university

:17:59.:18:02.

and it can be a bit of a gamble at times. I know it all too well.

:18:03.:18:07.

The number of university level students studying abroad has more

:18:08.:18:20.

than doubled since the turn of the century to reach 4.1 million.

:18:21.:18:23.

The number one destination is the United States

:18:24.:18:25.

That's followed by the UK with almost half a million

:18:26.:18:28.

Figures for the UK suggest the average international student

:18:29.:18:32.

spends $18,000 a year, excluding tuition fees.

:18:33.:18:33.

A large part of that goes on accomodation.

:18:34.:18:35.

Student dot com is a website that helps those students find

:18:36.:18:38.

somewhere to live in more than 400 cities worldwide.

:18:39.:18:40.

Luke Nolan is the co-founder and Chief Executive of Student.com

:18:41.:18:43.

He is with us now. Nice to see you. Morning, Luke. We can see the need.

:18:44.:18:51.

I could have used this as a student, trying to find somewhere to live. I

:18:52.:18:55.

was back at my university city this week, looking at where I used to

:18:56.:18:58.

live, and some places were pretty dreadful, but this is a way of

:18:59.:19:02.

matching beds and runs the students. How did the idea come about? Good

:19:03.:19:09.

question. I had been living in China already for about six or seven

:19:10.:19:12.

years, and spent a lot of time doing business with Chinese live the

:19:13.:19:16.

country. The question that kept cropping up was my son or daughter

:19:17.:19:20.

is studying abroad, where should they live? Very often, with the

:19:21.:19:23.

explosion of international student number is around the world,

:19:24.:19:25.

universities haven't been able to build more housing. So people are

:19:26.:19:32.

looking for a self -- a safe and comfortable place to live with great

:19:33.:19:35.

people. It always used to be guarantee that if you went to

:19:36.:19:40.

university in many countries you would be guaranteed at least for the

:19:41.:19:44.

first year to be living in university accommodation but so much

:19:45.:19:46.

has been farmed out to the private sector that is not always the case.

:19:47.:19:51.

Correct. It is not always possible for them. You started this in 2011

:19:52.:19:56.

and it was very focused on students coming from China to other

:19:57.:19:59.

countries. But now, as we have mentioned, you are in 400 cities

:20:00.:20:04.

around the world. How do you manage that? It sounds like a colossal

:20:05.:20:09.

task, especially to guarantee that those landlords that are providing

:20:10.:20:14.

the accommodation are OK? Very interesting point, in fact it is

:20:15.:20:18.

very important for us to align ourselves with high-quality

:20:19.:20:21.

landlords, who care just like we do about the safekeeping and well-being

:20:22.:20:24.

of students, and the whole student experience. So we spent a lot of

:20:25.:20:29.

time, it is time consuming but it is something we care deeply about.

:20:30.:20:34.

Where do you make money? The service is free for students, we make money

:20:35.:20:38.

from our landlord partners. Our landlords are looking for access to

:20:39.:20:42.

the market to students on a global level, so we take a margin from the

:20:43.:20:48.

rent that the student pays. And in terms of the logistics of it all,

:20:49.:20:52.

you say you take great care in making sure the landlords are all

:20:53.:20:55.

right and anything else, talk health that works? You have about hundred

:20:56.:21:03.

staff? We have about 180 people in 19 locations, split between our

:21:04.:21:06.

source countries and our destinations. So it is indeed

:21:07.:21:10.

relatively time-consuming but it is an important part of our business

:21:11.:21:14.

model. You have had a lot of investment, over $70 million has

:21:15.:21:17.

been ploughed into your company. Has anyone looked at you thinking, we

:21:18.:21:23.

want to buy you? Great question. We get approached a lot, in terms of

:21:24.:21:27.

discussions about all kinds of investment. Me, personally, as the

:21:28.:21:30.

founder of course I'm having the best time of my life building this

:21:31.:21:34.

business. I run the company as if I'm going to run it for ever, but of

:21:35.:21:38.

course strategic discussions are always interesting to have. Best of

:21:39.:21:44.

luck, Luke Nolan, chief exec of student .com. Plenty more to come

:21:45.:21:49.

come stay with us. This is how to stay in touch. The Business Live

:21:50.:21:53.

pages where you can stay ahead with all the day's breaking news.

:21:54.:22:08.

Alec Stewart is back with us. Nice to see you. We will stay with the

:22:09.:22:30.

student theme we were just discussing. A great story in the

:22:31.:22:35.

Washington Post, five tips for millennials want to buy a house.

:22:36.:22:38.

This all came about because an Australian millionaire said to many

:22:39.:22:41.

young people want everything, they want a holiday, nice cars, to be

:22:42.:22:47.

able to buy everything every day and then they whinge about not being up

:22:48.:22:51.

to afford a house. He has a point, doesn't he? I am not sure that

:22:52.:22:55.

cutting back on your coffee will make up for the fact that rents have

:22:56.:22:58.

gone up such a large amount and that you don't get any interest on your

:22:59.:23:01.

savings these days. So it is harder for young people now. Much harder.

:23:02.:23:08.

They say they have student debts, high housing costs, nowhere to put

:23:09.:23:11.

our money that makes a return, they say are only escape is burning money

:23:12.:23:18.

on Kofi. And avocado on toast apparently. The so-called snowflake

:23:19.:23:22.

generation, will you explain? I have educated both of you this morning.

:23:23.:23:28.

The assumption that young people, at the first sign of trouble melts, or

:23:29.:23:34.

they find any hurdle in their way. Is this the generation following

:23:35.:23:37.

millennials? I think it is all part of it. Just for the record I don't

:23:38.:23:40.

agree with because I think young people have it tough in many places.

:23:41.:23:44.

But it is interesting, because there is so much coverage of what young

:23:45.:23:48.

people are facing, in terms of challenges. The bank of mum and dad

:23:49.:24:01.

is one of the top lenders out there. And having to stay at home a lot

:24:02.:24:04.

longer and having to share a house with people you probably wouldn't

:24:05.:24:09.

want to. It is tough on these days. On that depressing note, thank you

:24:10.:24:12.

for talking through all of that. That is it from us on the show, we

:24:13.:24:16.

will be back tomorrow. See you soon, goodbye.

:24:17.:24:29.

The warmest day of the year so far yesterday, 26 degrees across the

:24:30.:24:33.

south-east. Things

:24:34.:24:35.