A look at the global business stories.
Browse content similar to 17/05/2017. Check below for episodes and series from the same categories and more!
let us know your thoughts. Just use the hashtag, BBC Business Live the
Today EU and US officials are meeting to discuss a potential
extension of the laptop ban on aircraft.
In March, the Trump administration imposed new restrictions
which prevent US-bound travellers from carrying electronic devices
larger than a mobile phone into the cabin.
The original set of restrictions affected flights from eight mostly
countries including Turkey, Egypt, the United Arab
This affected many of the Gulf carriers including Emirates,
Etihad and Qatar Airways, but now there are reports suggesting
the ban could be extended to include some countries
Any immediate changes would coincide with the peak
This summer, more than 3,000 flights a week
With me is Tom Jenkins, chief executive of the European Tour
Welcome to the programme. Good morning. Sally running through some
of the details there, but let's go back to the beginning because we
know this ban was put in place. Lots of criticism about why it was
necessary, what the rational for it. Talk us through it. Why are they not
allowed on planes? Well, I think, it is because there is intelligence
which the president in the United States was sharing with the Russians
just the other day that there are some people who are being able to
adapt laptop devices to explode on planes. But why, and again this was
a criticism, why are they safer in the hold than the cabin? They are
not. You have got, if you hold such intelligence, and you wish to share
seen to be doing something. So this seen to be doing something. So this
is grand standing on the part of some governments, some agencies to
say look, we're doing something, we're not quite sure what it is,
because we don't know if it makes it safer. They have that information
and as ever with such people you've either got to do something or you're
accused of ignoring what might be a problem. The big difficulty with
this situation that we've got is that laptops are going to be
dangerous, even if they're in a hold because there is dangers associated
with lithium batteries which have a reputation for exploding, not very
frequently, but there is a background danger of that happening.
It is interesting because we have been told those are the things you
can't pack in the hold. Up until the ban it was make sure you put these
in the hold? It is an inversion of previous advice. We were told it
wasn't safe to put them in the hold, we're told this is what you should
be doing. Who stands to lose out, apart from passengers, because a lot
of passengers will be inconvenienced? The principle
commercial victims, if there is a backlash, will be the American
carriers who carry the but k of peel across the labtic. The main --
Atlantic. The main thing to emphasise, we shouldn't get too
carried away about this. Business people like to use their laptops on
board flights. Not many use their laptops on board flights. The main
Venus Williams of this, I think, may well be children and people carrying
children over the Atlantic for hom tablet devices are really important,
pacifying device. Yeah, that's a really important point. It's
interesting too because we know there was critively this was
something instigated by the US Administration because they were
unhappy with what they perceived to be unfair aid for Middle Eastern
carriers, the likes of Emirates and this would affect US carriers as
well so that flies in the face of that argument? Well, it would. The
main issue really that we're facing. This is a huge switch of resources
away from what they ought to be doing, if they're worried, is
concentrating on individuals of interest as Border Agencies refer to
them, and analysing abnormal behaviour amongst passengers towards
blanket activity which is time scunling and disrupting. The other
issue which will start to come into focus now is the fact that it is
strange that they do all the controls, after you've left the
aircraft. In America, and in Europe, you're only interviewed after you've
left the aircraft and you've arrived on home soil. They would solve a lot
of these problems if they started doing that before you get on the
aircraft. That gets us into the argument about who is grand standing
and who is making the statement about security. Tom, we could talk
all day. Tom, really good it talk to you.
Let's take a look at some of the other stories making the news.
Lloyds is back in private hands after the UK Government
At the height of the financial crisis, the Government ploughed
$25 billion into Lloyds and owned a 43% share.
The boss of Lloyds told the BBC the bank is now "one
The Government still owns 73% of RBS which was also bailed out
Twitter co-founder Biz Stone says he will rejoin the social media
company in the next few weeks after fellow co-founder
Jack Dorsey was brought back as chief executive in 2015.
Mr Dorsey has been trying to revive Twitter which says it has more
than 300 million monthly users, but still struggles
A pair of diamond earrings has been sold for a record price
The flawless pear-shaped diamonds - one pink, the other blue -
fetched a combined price of $57.4 million.
The pear-shaped jewels, nicknamed Apollo and Artemis,
Reports say the earrings were bought by an anonymous buyer.
It was you that bid for them. I put in my $57 bid and I didn't get far.
You were outbid. Just a little bit. Justify a few million.
Universal Music has signed a deal with the Chinese
internet company Tencent, to try and expand their reach
into China Stephen McDonnell is in Beijing.
Tell us more about this. It is an interesting development? Well, it is
potentially an enormous deal for Universal Music. Imagine how big the
pool of potential music users there are in China. So, it's hooked up
with Tencent, but the really crucial thing as to whether or not this is
going to be a good deal or not is whether or not Tencent can continue
to wean Chinese people off free music. There are basically three
types of people who listen to music in China. Those listening to pirated
muse UK, those who are paying and then crucially this big group in the
middle who are using Tencent's music for example on their phone and
perfectly legally listening to free music. Tencent has been trying to
get people to pay by saying OK, you listen to that band's song, but here
is another song by them, and if you want that song, you've got to pay or
do you want a better quality version of that song? This is like there are
only # #15 million, who are paying for this service and around 600
million Chinese people every month listening for free. So the crucial
thing is, can they continue to get people to pay? And if so, well,
eventually, it probably will be a good deal for Universal Music. All
right, we will keep an eye. Steve, thank you very much indeed. Let's
look at markets in Asia. I have to say, it was all down as you can see.
A lot of that is to do with investors around the world getting
very concerned about what is going on in the White House and in the
Trump administration in particular. Allegations that have come through
day after day in recent days are really concerning investors around
the world about how vulnerable the US Government or the Trump
administration is. So, in Japan, we saw losses because the yen got
stronger. . It is seen as a safe haven. The price of gold went up.
Exporters in Tokyo had a tough time today, that was the Dow the night
before. Light losses on Wall Street the night before. Nothing to be too
concerned about. Let's look at Europe now. Again a record close for
the FTSE on Monday. It's down, just a little bit, but still, doing
extremely well. Markets across Europe just down a tad. Let's now
have a look at head to what's going on on Wall Street. Samira has the
details. Target is reporting. It warned
investors about lower profits this quarter and has said it will lower
prices to try and compete with companies like Wal-Mart and
that will be reporting on Wednesday that will be reporting on Wednesday
is American Eagle. Weak demand for its men's line and continued
softness in traffic will likely impact sales and finally, Sisco
Systems, the world's largest networking gear maker. They will be
reporting earnings. The company has been hurt by sluggish demand for its
equipment business and Sisco have been doubling down on areas such as
security, the internet of things and cloud computing. Internet security,
something that's taken on some heightened importance in recent
days. Joining us is Alix Stewart, fixed
income fund manager at Schroders. Good morning. Good morning. Let's
talk about Lloyds. We mentioned it there in the round-up of other news
the. It is a significant day. It is back into private hands? Finally the
post financial crisis seems to be behind Lloyds anyway or the
Government ownership of it as finally the taxpayers get their
money back. Returned to private hands and the taxpayer makes a
profit on it. So in that sense it has been good, but it all came about
because Lloyds was in a decent financial position already been it
got into the bail out? It was a well run bank before the financial crisis
and wasn't one of those that was in danger, but they bought HBOS which
had a load of issues and what they have been doing is putting all that
right since then and this is the end of the process as far as that's
concerned. So different to the fortunes for RBS though because it
was in a similar position. It got a bail out out at the height of the
financial crisis, but it is # 3%, I think, owned by taxpayers, such a
contrast between RBS and Lloyds? Such a contrast because RBS weren't
a well run bank and we can see with the number of fines that they are
getting hit with the and the issues that they have now that it has taken
them longer to recover. The boss of Lloyds bank, he has been grilled on
the radio, BBC Radio Today, it's on our Business Live page. It's over
there, the interview with him and what he has been saying about.
Interesting comments about executive pay that he was making. So have a
read at that. To look ahead, the FTSE 100 down slightly. We've got
unemployment figures out in the UK, shortly. Thoughts? They are expected
to be a low level. The thing about obviously employment in the UK as we
have seen is a lot has been self-employed and zero hours
contracts. The big question going forward is whether, you know, this
level of unemployment actually leads to wage rises that worry the Bank of
England. And those wage rises are the bit we are all feeling because
inflation rising yesterday, we've got less money in our pocket. It's
not keeping up with inflation, is it? Consumers are feeling squeezed
and we're beginning to see that in the retail data now. One for us to
watch. Those figures out at 9.30am. Alix, thank you.
Still to come, rogue landlords and dodgy digs.
Why one app wants to change the way students find somewhere to live
You're with Business Live from BBC News.
The Government has confirmed that its remaining shares
in Lloyds Banking Group have been sold eight years after pumping
At the height of the financial crisis taxpayers
Our Business Editor Simon Jack is in the business newsroom.
Simon, it does mark the end of the year as virus that bailout is
concerned. Yes. Almost nine years ago the taxpayer put in ?20.3
billion. That has now been repaid in full, with a small profit, nearly
?900 million paid more than put in. It is not a fantastic return on an
investment over nearly a decade but this wasn't an investment, this was
a rescue of a bank, Lloyds bank, which made a bad situation much
worse by agreeing to take over HBOS, which had made a lot of toxic
commercial loans, relying on when the money, which all dried up in the
credit carnage, and saw multi-million pound -- multi-billion
pound losses. The Chief Executive celebrated returning all that money.
It has been a very difficult road. ?17 billion paid out in payment
protection insurance, criminal fraud in some of the HBOS branches,
particularly in Reading. It hasn't been an easy road. Now they are
there, the question is what happens now? They expect the shareholders to
do normal things like try to increase profits, grow revenue, and
they have really reach wrenched into the UK. There are some headwinds
facing them, very exposed the consumer and retail banking. As you
mentioned, it will begin to eat into consumers ability to pay an for
additional credit. Some problems they have to face, and the end of an
era. I remember it at the time, ?20.3 billion, no one thought it
would take this long to come back. The government will be pleased but
it is some UN and some you lose. Remember they are still very much in
the red on their stake on RBS. It could be on the government books for
many years to come unless they are prepared to sell at a loss, which
the Chancellor said recently he might be prepared to do. Some you
win, some you lose. Thank you, lots more online to read when you have a
moment. Our top story today,
EU and US officials are meeting to discuss a potential extension
of the laptop ban on aircrafts. The original set of restrictions
affected flights from eight mostly mostly Muslim countries,
including Turkey, Egypt, the United Arab Emirates
and Saudi Arabia but now there are reports suggesting
that the ban could be extended to include some countries
within the EU. One analyst I spoke to said it will
be the whole of Europe. And as we were talking with our guest earlier,
the problem is of course we tend to think of it just bought business
travellers with laptops. A lot of you getting in touch saying it is
families with tablets as well. Andrew says it is not a problem
having a laptop on a plane, it is the safety in the hold and lack of
insurance for any damage and theft in the hold. A similar theme from
Claude, as long as the airlines replace the ones they damage in
transit. Some airlines, particularly Emirates, are trialling a system
whereby you can lock it up as you get on the plane, which then goes
into the hold. Daniel says they just need better movies on flights. Maude
says she cannot live without her candle. She got mentioned twice!
Eddie says keep the drinks flowing, I am with him. Drinking on planes.
Let's move on. You may well have been a student or
you may be one right now, or you are the parent of a student, well listen
up, because you may well know very well it is very difficult and often
quite stressful to find somewhere to live at eight college or university
and it can be a bit of a gamble at times. I know it all too well.
The number of university level students studying abroad has more
than doubled since the turn of the century to reach 4.1 million.
The number one destination is the United States
That's followed by the UK with almost half a million
Figures for the UK suggest the average international student
spends $18,000 a year, excluding tuition fees.
A large part of that goes on accomodation.
Student dot com is a website that helps those students find
somewhere to live in more than 400 cities worldwide.
Luke Nolan is the co-founder and Chief Executive of Student.com
He is with us now. Nice to see you. Morning, Luke. We can see the need.
I could have used this as a student, trying to find somewhere to live. I
was back at my university city this week, looking at where I used to
live, and some places were pretty dreadful, but this is a way of
matching beds and runs the students. How did the idea come about? Good
question. I had been living in China already for about six or seven
years, and spent a lot of time doing business with Chinese live the
country. The question that kept cropping up was my son or daughter
is studying abroad, where should they live? Very often, with the
explosion of international student number is around the world,
universities haven't been able to build more housing. So people are
looking for a self -- a safe and comfortable place to live with great
people. It always used to be guarantee that if you went to
university in many countries you would be guaranteed at least for the
first year to be living in university accommodation but so much
has been farmed out to the private sector that is not always the case.
Correct. It is not always possible for them. You started this in 2011
and it was very focused on students coming from China to other
countries. But now, as we have mentioned, you are in 400 cities
around the world. How do you manage that? It sounds like a colossal
task, especially to guarantee that those landlords that are providing
the accommodation are OK? Very interesting point, in fact it is
very important for us to align ourselves with high-quality
landlords, who care just like we do about the safekeeping and well-being
of students, and the whole student experience. So we spent a lot of
time, it is time consuming but it is something we care deeply about.
Where do you make money? The service is free for students, we make money
from our landlord partners. Our landlords are looking for access to
the market to students on a global level, so we take a margin from the
rent that the student pays. And in terms of the logistics of it all,
you say you take great care in making sure the landlords are all
right and anything else, talk health that works? You have about hundred
staff? We have about 180 people in 19 locations, split between our
source countries and our destinations. So it is indeed
relatively time-consuming but it is an important part of our business
model. You have had a lot of investment, over $70 million has
been ploughed into your company. Has anyone looked at you thinking, we
want to buy you? Great question. We get approached a lot, in terms of
discussions about all kinds of investment. Me, personally, as the
founder of course I'm having the best time of my life building this
business. I run the company as if I'm going to run it for ever, but of
course strategic discussions are always interesting to have. Best of
luck, Luke Nolan, chief exec of student .com. Plenty more to come
come stay with us. This is how to stay in touch. The Business Live
pages where you can stay ahead with all the day's breaking news.
Alec Stewart is back with us. Nice to see you. We will stay with the
student theme we were just discussing. A great story in the
Washington Post, five tips for millennials want to buy a house.
This all came about because an Australian millionaire said to many
young people want everything, they want a holiday, nice cars, to be
able to buy everything every day and then they whinge about not being up
to afford a house. He has a point, doesn't he? I am not sure that
cutting back on your coffee will make up for the fact that rents have
gone up such a large amount and that you don't get any interest on your
savings these days. So it is harder for young people now. Much harder.
They say they have student debts, high housing costs, nowhere to put
our money that makes a return, they say are only escape is burning money
on Kofi. And avocado on toast apparently. The so-called snowflake
generation, will you explain? I have educated both of you this morning.
The assumption that young people, at the first sign of trouble melts, or
they find any hurdle in their way. Is this the generation following
millennials? I think it is all part of it. Just for the record I don't
agree with because I think young people have it tough in many places.
But it is interesting, because there is so much coverage of what young
people are facing, in terms of challenges. The bank of mum and dad
is one of the top lenders out there. And having to stay at home a lot
longer and having to share a house with people you probably wouldn't
want to. It is tough on these days. On that depressing note, thank you
for talking through all of that. That is it from us on the show, we
will be back tomorrow. See you soon, goodbye.
The warmest day of the year so far yesterday, 26 degrees across the