17/05/2017 BBC Business Live


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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


south-east. Things


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