29/06/2017 BBC Business Live


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This is Business Live from BBC News with Susannah Streeter


Sky's the limit - will Rupert Murdoch's takeover plans


for the pay TV giant be cleared for lift off?


Live from London, that's our top story on 29th June.


With his control of 21st Century Fox, Sky and UK newspapers,


the fears are that Mr Murdoch wields too much power in the British media.


Also in the programme: Central Bank conundrum -


the end of cheap money leaves Mark Carney and Mario


Draghi lost for words, and the markets don't like it.


We'll get some clarity from an expert.


This is how the financial markets look on opening. The FTSE is


currently in positive territory. And it's been dubbed


the Uber of data science. We'll be talking to a new start up


which makes it easier for firms Today as a Cornish village


use their connection with horseracing to convince


a Dubai sheikh to help save their church hall,


let us know - what's your We start with a big day for this man


- media tycoon Rupert Murdoch. He may be 86 years old,


but his empire-building ambition Today he finds out whether the UK


Government will let him take over pay TV giant Sky -


or whether to order Mr Murdoch's 21st Century Fox


already owns 39 per cent of Sky. Sky is one of Europe's


biggest broadcasters, The deal has already been cleared


by countries across the region. But some claim it would give


Mr Murdoch too much control His company News Corporation


abandoned a 2011 bid following the phone hacking scandal


involving its newspapers. This year a new scandal -


sexual harassment allegations at Fox News in the US -


has led to calls for the latest deal Something our Media Editor Amol


Rajan asked Mr Murdoch about when he caught up with him


in New York last month. Report, BBC, are you worried about


off,? No. You should be worried about the BBC. Are you worried about


what might happen to this deal is in relation to off,? Are you worried


about what off, might say about Fox News? Fox News is getting record


ratings. So I'm not worried at all. And you don't think of, will


consider what is happening at Fox News? Nothing is happening at Fox


News. Nothing, OK? Bruce Kilpatrick, Head


of Competition, Addleshaw Goddard. Is he going to get this, do you


think? Today's announcement is an initial decision by Karen Bradley,


not a final decision. We still have our way to go. -- we still have a


way to go. What issues will should be thinking about? There are two mac


key public interest issues. All other regulators have given the deal


agreeing light. The first issue is media plurality, and the second is


whether Fox will be committed to editorial standards and


impartiality. That is interesting, because there also has to be a


public interest of Fox's record on broadcasting standards, and many


people have pointed to these sexual harassment allegations. Will these


have been taken into consideration? Off, will have prepared a report on


these issues, and we know that Karen Bradley received those about ten


days ago from com. I would expect those issues to have at least been


considered by off, in the report it gets the Karen Bradley. At the same


time, comms separately has to reach a decision on whether sky would


continue to be eight fit and proper holder of a broadcasting licence


under full ownership of Fox. And will it be to do with editorial


independence? That will be key. In terms of impartiality and the


editorial control that Fox may have, I think that today's announcement


could have opened the door to concessions or discussions around


the degree of editorial independence required in relation to sky to get


the deal through without a six-month review. Bruce Kilpatrick, thank you


very much for that. Let's take a look at some of


the other stories making the news. The biggest US banks have all passed


the second, tougher, The approval by the Federal Reserve


could give momentum to White House The Fed has signed off


on the firms' plans to distribute money to shareholders,


rather than keep it as a buffer India's Cabinet has approved plans


to privatise Air India. The airline - which has debts


of 8 billion dollars - has been struggling amid growing


competition from low-cost rivals. Privatisation plans have been


abandoned before, however, and unions have threatened


wide-ranging protests if ministers The US has unveiled tough


new measures to enhance security on flights entering the country,


but has held off extending a ban The new measures require


enhanced passenger- and electronic-device screening


across 105 countries. Some other news that is on the BBC


business live page, entitled the Italian job. That looks into BT and


PWC's behaviour. The last paragraph says that PWC, which had been the BT


or that since 1984, was replaced earlier this year by KPMG. So, a


development there, relating to BT and PWC.


Malaysia could be seeing the signs of an economic turnaround as it


seeks to recover from the 1MDB corruption scandal Christine


An economic turnaround? It seems that way, or investors seem to think


so. The Malaysian currency is the second strongest performing after


the Chinese UN. -- the Chinese yen. Global environment and energy prices


are stabilising. The Government is expected to be focused on attracting


foreign investment. They have elections next year. The corruption


problems have not entirely gone from the Government and the economy is


still very depended on commodities, debt levels are still high, and the


fact that so much of its debt is still being held by foreign buyers


is also a risk for the currency going forward. Investors seem to be


focusing on the bright side at the moment, but there are doubts as to


whether the momentum can be sustained the launch -- sustained


beyond the elections. It seems that the period of easy


money might becoming to an end. The main indices in Asia were up on the


news, held by some steadying oil prices. Let's look at what is


happening in Europe since the open. The FTSE 100 and the other indices


are all up at the moment. The pound rose after Mark Carney hinted at a


potential interest rate hike. Joining the chorus of voices all


talking about tightening money policy.


And Michelle Fleury has the details about what's ahead


A few weeks ago Donald Trump said some very good numbers were coming


But which numbers was he talking about?


The latest reading on GDP for the first three


months of the year is due out this Thursday.


The first reading showed a lacklustre growth rate of 0.7%.


This final figure is expected to show the


economy growing at a 1.2% annual rate.


This doesn't mean the President is wrong, though.


Many economists are forecasting a stronger growth in the


Despite this anticipated acceleration, that


didn't stop the International Monetary Fund this week from cutting


its growth forecast for the US, casting doubt on the Trump


administration's ability to deliver tax cuts and spending on


infrastructure that will boost the economy.


In corporate news, US meal kit company Blue Apron is expected


to make its debut on the New York Stock Exchange.


And Nike, the apparel maker, is due to report its


Joining us is Lawrence Gosling, editor-in-chief of Investment Week.


Hello. The big talk at the moment seems to be about four central banks


think the future holds. We have had all these warnings about increased


interest rates and less quantitative easing. Do you think this is going


to be coming sooner rather than later? A UK rate rise, I would say


there is a reasonable chance of one before the end of this year, if you


follow the tea leaves of the members of the MPC. There is definitely a


split, and we saw Mark Carney saying one thing, slightly contradicted by


what John Cunliffe had said earlier the same day and then Mario draggy


saying something that the market since it -- interpreted differently.


All around the world, you're getting these inklings about rates. And


rates have gone up in countries further afield than those main ones.


We are in a period now where interest rates are beginning to take


up because the global economy is in not bad shape. In Europe, it is


picking up quite nicely. We have economic data out later today which


signals the easing of easy money, as you might say. Consumer data


numbers, consumer confidence and mortgage lending, both are expected


to be reined back a little bit. You can see there is caution in the


market. Is that why the markets are up this morning? The FTSE is up two


thirds of 1%. Partly that, and partly the US big bank stressed test


-- stress test. But the banks like higher interest rates? Yes, because


that is how they make their money. They lent to us at a higher rate


than they take our deposits. That is the business model. We will look at


the stress tests and whether banks are holding enough in reserve. For


now, Lawrence, thank you very much. Still to come: We'll be talking


to a new start up which makes it easier for firms to hire the hottest


tech talent - we're talking You're with Business


Live from BBC News. Britain's second biggest


airport, Gatwick, has just The 12 months to the end of January


was the busiest in its history, with over 44 million passengers


passing through its gates, Revenues and profits


were also up strongly - and the airport is planning heavy


investment. Theo Leggett is in our


business newsroom. It seems as though the verdict went


again them -- against them, as it were, when they were competing with


Heathrow for an extra runway, but life seems to be getting better. We


will talk about Heathrow in a moment, but Gatwick is doing well in


terms of passengers. In a more recent measure to the end of June,


it has breached the 45 million passengers mark. That is an awful


lot of people, and it means that revenues are increasing, but in


terms of profits, things don't look quite as good. They fell in the year


to the end of March from ?140 million to 132 million, so it is a


mixed bag. Costs are rising as well. And also, let's talk about


expansion, because Gatwick really is bursting at the seams, isn't it? And


it has kind of lost out to Heathrow. Has Gatwick said anything about this


in reporting these results today? That is the problem it faces - it


only has one runway. An awful lot of major airports have two, three or


even format. -- or even foul-mac. Heathrow has tried to persuade the


Government to allow it to build a second runway. It hasn't, and it


seems the Government are more keen on building at Heathrow. We never


said we don't want another runway, and we are prepared to build one. We


continue with that offer to the Government. What happens at Heathrow


is a matter for them and the Government. We would like to build a


runway because we are nearly full and we are operating a runway at


nearly full utilisation. That was the CEO of Gatwick.


One interesting story here about Greenking. My local brewer. They


have been drinking too much of their own beer! They said: They are doing


frightfully well but they don't think things look very good. Revenue


still rising a bit. You're watching Business Live -


our top story: Media tycoon


Rupert Murdoch hears whether or not his takeover plans


for the pay TV giant Sky A quick look at how


markets are faring. Since the opening in Europe, as you


can see, it is a sea of green across the screen, very different yesterday


when the FTSE 100 in London was down following those hawkish comments by


mark Carney about possible interest rate hikes. It seems those banking


stress tests in the US cheered the financial sector in particular.


Now, a new start up which makes it easier for firms to hire


Our guest today started her career as an astronomer.


But she thought her true calling was as an entrepreneur.


So why not combine the two, science and business?


The result, Pivigo, a firm that acts as a kind of storefront


It offers education in the field as well as job opportunities.


Dr Kim Nilsson, co-founder and chief executive of Pivigo.


Thank you for joining us. How did you swap stargazing for number


crunching? They are very much connected to each other, of course.


I started out with a dream to become an astronomer since I was 13 years


old and it was a straight pass from third to my Ph.D. Before I finally


accepted I wasn't enjoying my work that much, I wanted to get out and


meet with people and organised things and plan things. It must have


been very difficult. It was very difficult to accept that a dream I


had for so long was not quite right for me. But it was the best decision


I ever made to transition. How did you do that? I ended up coming to


the UK to learn about business, the UK has the best business schools in


Europe and I wanted to figure out what this thing cold business was


and what my place in that could be. When did you realise there was this


niche in the market for a kind of gig economy for data scientists? It


has been something that has evolved with time. The first thing I


recognise is that we have fantastic talent in our universities. People


with my type of background really struggled to make the transition out


of academia. And on the other hand we have companies crying out for


analytical talent, saying they cannot find it. There is a mismatch


in these expectations and communication. We wanted to do


something in that space. How important is the NBA in making the


jump from having been an academic towards getting into business? The


MBA gave me the confidence that I could do this, I went into it


thinking I'm a scientist, I don't understand this. But I understood


from the MBA that business is about intuition, logic and working with


people. It gave me the confidence that I can be an entrepreneur and I


can start a business. You work a lot with so-called big data, companies


sitting on piles and piles of personal data, shopping habits, but


they do not know what to do with it and that is what you are trying to


draw out. We see companies hesitating about how to get started


with data and it is hurting the UK economy, they are losing out on


profits, revenue, efficiencies, and they are less competitive than their


US competitors who are already using the data. We want to help the


companies to understand what they can do with the data, what the


return on investment can be, and how to find the talent they need to do


it. You're getting the data scientists to do the number


crunching, is it were, the analysis. What do you do? Do you just link


them? We make the connection, we help companies first of all


understand what they can do. Many of our clients are SME companies who


have no clue what to do with their data. We help them understand what


they can do. Then we help them understand what kind of people they


need, what skills they need, how to vet them and how to find them and we


connect them with our global community. Very briefly, how do you


think Brexit will affect your business? I think, we are worried


because I estimate something like 50-60% of this community in the UK


is European. We are worried about access to the international talent


which is critical to the success of this industry and we are keeping our


fingers crossed that Theresa May recognises that and will make


efforts to improve the situation. The kind of businesses you are


talking about, surely people don't have to come to the UK, or go to


Australia to do this, you could do the whole thing online. We are


passionately telling companies to consider doing projects remotely


because then you get access to the best people in the world. You want


the best people in the world working for you. Brexit shouldn't affect


that. There is another opposing force which is that a lot of


companies are worried about data security and they are worried about


data leaving the country, or that alone their premises. Lots of


companies want the talent to be in-house. How do you charge for


this? Do you charge both sides? Get a double fee, charge the scientists


coming in and the company? Not at all, this is an opportunity for


academics and scientists to get work. You do not charge them? These


are academics who might feel that their skills are not valued? Yes,


they are struggling to make the transition to show the skills they


have from academia are useful outside of academia as well. What is


the market like? Are you the only people there? We have a number of


competitors, of course, in this space of various different flavours


and types and it is a market that is growing fast. We have been doing


this for a Foyle years and in that time already lots of conversations


have gone from what is big data to how do I do it? That is the great


promise we see in the industry. Dr Kim Nilsson of Pivigo, thank you.


In a moment we'll take a look through the Business Pages but first


here's a quick reminder of how to get in touch with us.


The business life pages when you can stay ahead with the day's business


news, we will keep you up-to-date with the latest details with


insight, analysis from the BBC's team of editors around the world. We


want to hear from you. Get involved on the BBC Business Live web page at


BBC .co/ business. On Twitter we are @ BBC business and on Facebook at


BBC business news. ABC business news on TV and online whenever you need


to know. Lawrence Gosling, editor-in-chief


of Investment Week, is back with us. We did mention this before, it has


lifted the markets, the US stress tests, first of all, explain the


stress tests and why they are significant. They are complicated


but the six biggest banks in the US have enough money, in the opinion of


the regulators, to see them through what we all cool -- call a limb and


brothers moment. I have enough cash to start paying back in terms of


dividends or buying back their own shares. -- they have enough cash. --


Leeman brothers. It comes at a time when a number of European banks have


had to be bailed out so is there a big difference? The US banking


sector is six or seven years ahead of continental European banking


sector and the UK has done a lot of what the US has done so the UK is a


couple of years behind. The European banks, stress tests in Europe are


different from the ones we do in the UK and also the US. They are, two


Italian banks have been bailed out this week alone and we saw a Spanish


bank taken over a couple of weeks ago. In the Trump administration the


rules are being softened. Would that mean they don't need the kind of


capital reserves these kind of tests demand? It depends how they break up


them, the rules. They are very complicated at the moment in terms


of how much they have to put aside for each part of their business. We


would have to see before we can tell you that. In the Financial Times,


PWC pay women 14% less than male employees, this is part of a drive


to create more transparency through big corporations. It shows there is


a lot of work still to be done. In fairness to PWC they have been


publishing this data for a couple of years. It does not look that


impressive but as you see through it, looking at a number of levels,


at the most senior partner level there is considerably less women at


the partner level and there are men. That is not good, middle ranking


functions are a little more even. Unfortunately lots of the women are


employed at the junior support level and the pay differentials are coming


up, they are getting better. It is the maternity get, raising children,


the company say they are trying to put projects in to ensure that women


return to work. They call this returnee chip, making it easier for


women to come back into the workplace. Are more companies doing


this kind of self-examination? Saying, look, we have to sort this


out. Are they getting to grips with this? I think they are because it's


about hanging onto your talent, that is the bottom line and it is hard to


find talent, particularly in an economy that is near full


employment. This Cornish village has found some talent, they were trying


to save its village hall and they went to the local Sheikh to ask for


the money. They share the Godolphin Main. Anybody who knows anything


about racing, they have the Godolphin horses going back 250


years -- Godolphin named. The Godolphin family was responsible for


the name of this Cornish village. They were ?100,000 short to save the


village hall and they thought, who has got a bit of money? They didn't


think it would work. They tried it and sent of those


letters, what a success. Fundraisers up-and-down the country in village


halls will be thinking I wish I had that. Thank you for joining us.


That's all from Business Live. More business news throughout the day.


Goodbye. Good morning, we have another soggy


start of the lay across many


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