:00:11. > :00:13.This is Business Live from BBC News with Ben Bland and Rachel Horne.
:00:14. > :00:17.Hundreds of top websites stage a protest over plans to scrap net
:00:18. > :00:36.Live from London, that's our top story on Wednesday 12th July.
:00:37. > :00:40.The changes would mean internet providers don't have to treat
:00:41. > :00:42.all our data equally, so what could America's changes mean
:00:43. > :00:49.Also in the programme: Calling Spotify's tune.
:00:50. > :00:52.The music streaming service signs a big deal to access Sony's music
:00:53. > :01:08.The markets are modestly higher across the main European indices. We
:01:09. > :01:12.will look at a sharp and at Wall Street on the day when the Federal
:01:13. > :01:15.Reserve chair is due to give testimony to congress.
:01:16. > :01:17.And from the up-start start-up to the boardroom.
:01:18. > :01:19.We meet Sophie Eden, the recruitment entrepreneur whose
:01:20. > :01:26.matching top tech talent with established names.
:01:27. > :01:28.And, as another new startup launches an online store selling unbranded
:01:29. > :01:31.consumer basics all for $3, we want to know, when it comes
:01:32. > :01:34.to your peanut butter or hand soap what's more important,
:01:35. > :01:51.Your tweets are already coming in. Keep them coming.
:01:52. > :01:56.Get ready to take a deep breath when you go online today
:01:57. > :01:59.because some of the most popular websites will be running slowly.
:02:00. > :02:02.Companies like Facebook, Netflix, and Amazon are taking part
:02:03. > :02:05.in a protest against changes being made to US rules
:02:06. > :02:18.If your internet provider is the road and the cars
:02:19. > :02:22.are content, then "net neutrality" stops the internet provider setting
:02:23. > :02:26.up a fast lane for those prepared to pay to get there quicker.
:02:27. > :02:29.Such a fast lane means the companies that can afford to use
:02:30. > :02:31.it can get their content, for example data heavy videos,
:02:32. > :02:38.Giving them an advantage over their competitors.
:02:39. > :02:41.The companies and activists behind today's action argue treating
:02:42. > :02:45.all internet traffic equally is a matter of fairness,
:02:46. > :02:49.limits censorship and ensures smaller companies are not
:02:50. > :02:53.disadvantaged simply because they have less money.
:02:54. > :02:56.Since President Trump took office the US Federal Communications
:02:57. > :03:00.Commission has voted to overturn "net neutrality" rules.
:03:01. > :03:03.It's new chair says doing so will encourage internet providers
:03:04. > :03:11.This is a contentious issue across the world.
:03:12. > :03:15.The countries in blue currently make sure all data is treated equally.
:03:16. > :03:24.Richard Kramer is the Founder and Managing Partner
:03:25. > :03:32.of Arete Research, which looks at technology shares for investors.
:03:33. > :03:39.Then mentioned the go slow that many of those big-name websites will be
:03:40. > :03:44.putting in today. Is that something users around the world will
:03:45. > :03:47.experience? It is something users will see globally if for no other
:03:48. > :03:54.reason than the companies participating well wanted to be
:03:55. > :03:58.global issue. What is the issue? It is about money and the restrictions
:03:59. > :04:04.that the FCC rules will place on carriers in the US required to give
:04:05. > :04:13.equal access the different content. You have the largest cable company,
:04:14. > :04:20.$200 billion companies collectively of sales, $70 billion of cash flow,
:04:21. > :04:26.investing $25 billion a year, so the notion this is deterring investment
:04:27. > :04:31.is fanciful. You have Google, Amazon and Netflix championing the rights
:04:32. > :04:35.of small businesses or smaller sites which might be disadvantaged in the
:04:36. > :04:39.name of free speech. The huge commercial enterprises who want to
:04:40. > :04:44.make sure they do not bear the cost of reaching the last mile to the
:04:45. > :04:48.consumer. Who should bear the cost? The consumer bears the cost in
:04:49. > :04:56.paying for their broadband and most consumers would believe that the
:04:57. > :05:04.provider should not tell them what they can consume in terms of
:05:05. > :05:08.content. In other plans you can have faster speeds, so there are ways to
:05:09. > :05:13.differentiate broadband services. Which content is provided is very
:05:14. > :05:19.contentious because it allows a company like a TNT, trying to take
:05:20. > :05:24.over Time Warner which owns HBO, to say they charge more for competitors
:05:25. > :05:32.of HBO's competitors than for their own services. It applies in other
:05:33. > :05:36.aspects of life. If you are prepared to pay more you can get a faster
:05:37. > :05:41.service, for example a toll road, there is one in the UK companies
:05:42. > :05:47.that can afford to use it their goods will get places faster, it
:05:48. > :05:52.gives them competitive advantage, is that not part of business? It says
:05:53. > :05:58.that I am going to decide which brand of car can ride on the road.
:05:59. > :06:03.But if they are willing to pay they can get on? From the content
:06:04. > :06:12.provider's point of view this would pass on the raise to consumers and
:06:13. > :06:15.chill the access of free speech. You would place on the hands of the
:06:16. > :06:21.provider is the power to decide which takes of content got through
:06:22. > :06:26.or to set the rules. In the case of the US broadband services about
:06:27. > :06:29.twice as expensive in the UK. It is a very contentious issue in terms of
:06:30. > :06:34.how the consumer ends up paying for the services. Thank you.
:06:35. > :06:37.Let's take a look at some of the other stories making the news.
:06:38. > :06:40.The US Department of Homeland Security says that it may
:06:41. > :06:42.soon lift the ban preventing passengers from taking
:06:43. > :06:51.A spokesman said that airlines flying from the four affecting
:06:52. > :06:53.Middle Eastern airports would need to demonstrate enhanced
:06:54. > :06:55.security measures before the restrictions were lifted.
:06:56. > :07:00.Takata is recalling nearly three million more airbags
:07:01. > :07:07.Faulty devices have been linked to 17 deaths and more
:07:08. > :07:21.What amounts to the biggest automotive recall in history.
:07:22. > :07:28.The sale of broadcast rights helped Premier League football clubs rake
:07:29. > :07:31.in $4.6 billion in the 2015 to 2016 season, this according
:07:32. > :07:35.TV rights accounted for more than half of all the income
:07:36. > :07:36.generated by top flight English football teams.
:07:37. > :07:39.The report said that a new domestic TV deal means overall revenues
:07:40. > :07:43.The music streaming service Spotify has signed a big deal
:07:44. > :07:52.It's being seen as crucial to the Swedish firm's plans to sell
:07:53. > :07:59.Monica Miller is in Singapore - what have they agreed?
:08:00. > :08:06.These Swedish music streaming services on its way to becoming
:08:07. > :08:12.going public. It covers Beyonce and Adele and has agreed to reduce
:08:13. > :08:20.royalty payments if sport of Phi restricts new albums to two weeks.
:08:21. > :08:24.It is on the back of a deal which represents more than 20,000
:08:25. > :08:30.independent labels. The online service has yet to turn a profit but
:08:31. > :08:33.that will allow them to cut down on its biggest expense, royalty
:08:34. > :08:37.payments to the music industry. It is in a much bigger position
:08:38. > :08:41.financially to leave the groundwork for a deal by the end of the year.
:08:42. > :08:46.It was recently valued at $13 billion. Thank you.
:08:47. > :08:57.A mixed picture for Asian shares on Wednesday.
:08:58. > :08:59.Tokyo's Nikkei closed lower - Japanese exporters took a hit
:09:00. > :09:01.as the dollar weakened against the yen.
:09:02. > :09:03.A relatively stronger yen makes their products more
:09:04. > :09:09.A big factor that could affect the dollar later is the testimony
:09:10. > :09:11.by Federal Reserve Chair Janet Yellen.
:09:12. > :09:13.She'll appear before Congress to update them on the state
:09:14. > :09:17.Investors will watch closely for clues about future
:09:18. > :09:27.On this side of the Atlantic, comments by the Deputy Governor
:09:28. > :09:31.of the Bank of England saying he's not ready to raise interest rates
:09:32. > :09:33.caused sterling to fall - hitting a two week low
:09:34. > :09:36.against the dollar and eight month low against the euro.
:09:37. > :09:39.Analysts will be watching for the latest employment
:09:40. > :09:45.data from the UK due in a couple of hours.
:09:46. > :09:48.That's how the equity markets look in Europe.
:09:49. > :09:50.And Michelle Fleury has the details about what's ahead
:09:51. > :10:02.Janet Yellen goes to Capitol Hill and investors want to know what she
:10:03. > :10:07.will say about interest rate policy. It is two days of testimony on
:10:08. > :10:11.Wednesday during her semi annual appearance before congress. She is
:10:12. > :10:15.likely to face questions about the economy, the path of interest rates
:10:16. > :10:20.and when the central bank plans to wind down its balance sheet.
:10:21. > :10:27.Regulatory issues are likely to come up. She has defended rules post on
:10:28. > :10:32.the big banks after the 2008 financial crisis. Republican critics
:10:33. > :10:38.argue the limit economic growth. This could be her final appearance
:10:39. > :10:43.before congress. Her four year term ended in February and Donald Trump
:10:44. > :10:45.has not indicated whether he plans to nominate her for a second term.
:10:46. > :10:47.Richard Dunbar is the Investment Director
:10:48. > :11:02.Sterling has hit a two mike legal against the dollar and eight month
:11:03. > :11:09.low against the euro. An interesting year. This time last year we were
:11:10. > :11:14.talking about European politics and the risk to the euro but it has been
:11:15. > :11:19.one of the best currencies in the world, up almost 15% against the
:11:20. > :11:23.dollar over the past year. We thought sterling was likely to be
:11:24. > :11:30.weak but it has been pretty strong against the dollar but weak against
:11:31. > :11:34.the euro. The movement on sterling, just how sensitive investors are to
:11:35. > :11:40.any clues about interest rate rises and the directions the central banks
:11:41. > :11:45.are taking, Stirling responding to comments by the deputy governor.
:11:46. > :11:48.Yes. From the central banks the message has been about getting
:11:49. > :11:55.interest rates up. That resulted in sterling rising but recent comments
:11:56. > :11:58.have countered that view. There is a feeling that the place of money is
:11:59. > :12:03.too low and they want to get that up. Janet Yellen is going to be
:12:04. > :12:08.speaking about what she believes is in store for the US economy. What do
:12:09. > :12:14.you expect her to see an do you expect much market reaction? The US
:12:15. > :12:17.economy is in pretty good health and has been managed pretty well by
:12:18. > :12:21.Janet Yellen and her team. She would like to get interest rates up a
:12:22. > :12:27.little but the problem is there is no inflation and that is her target.
:12:28. > :12:32.That is difficult. She feels the prize money is too low and it is
:12:33. > :12:35.causing perhaps irrational exuberance behaviour in markets and
:12:36. > :12:44.she would like to counter that. We so that when some shares were
:12:45. > :12:49.offered is. We talked about it yesterday. Falling below the initial
:12:50. > :12:53.offer price and the form that helped launch the shares has downgraded
:12:54. > :12:56.them below what it launched out. Investment bankers changing their
:12:57. > :13:01.view on things is perhaps not new but the scrutiny of the public
:13:02. > :13:06.markets on some of these what looked to me very expensive new issues on
:13:07. > :13:11.what is definitely per governments around how they are run, that
:13:12. > :13:15.scrutiny is causing problems and I expect we will see that continue
:13:16. > :13:27.with others in the pipeline. You will be back to discuss the papers.
:13:28. > :13:38.We get the inside track on the technology world.
:13:39. > :13:40.The Competition and Markets Authority has announced that Tesco's
:13:41. > :13:42.bid for Booker will be investigated further.
:13:43. > :13:49.The regulator says it has concerns about the impact the ?3.7 billion
:13:50. > :13:51.deal could have on small local stores.
:13:52. > :13:53.Katie Prescott is in our business newsroom.
:13:54. > :14:08.This goes back to the ?3.7 million deal between Tesco and Book of the
:14:09. > :14:13.wholesaler which owns convenience stores Budgens, Premier and Londis.
:14:14. > :14:18.It was seen as a bit of up perfect marriage when it was first announced
:14:19. > :14:21.in the competition and markets laboratory seemed to agree because
:14:22. > :14:26.they jumped on it. They had an initial look into what was going on
:14:27. > :14:31.and they were concerned there might indeed be competition issues. This
:14:32. > :14:36.morning they have said they have found 350 local areas where they
:14:37. > :14:41.think that showers and shops might be affected so they are selling it
:14:42. > :14:46.for a second look. What happens next? It will be looked at by
:14:47. > :14:50.another panel within the CMA who will look at the impact on shoppers
:14:51. > :14:56.than some of the shops that poker supplies. They have 24 weeks to do
:14:57. > :15:02.so so we should get a report into their findings by Christmas. Looking
:15:03. > :15:08.at the Tesco share price it is only down slightly, about 0.5%, though
:15:09. > :15:40.investors do not seem that bothered. Thank you. He thinks it is difficult
:15:41. > :15:43.for given that, he's not yet ready to raise interest rates. That has
:15:44. > :15:47.had a knock-on effect on the markets. We have already seen
:15:48. > :15:52.sterling suffering somewhat, having a bit of a fall, falling to an
:15:53. > :15:56.eight-month low against the euro. As Richard Dunbar was explaining, that
:15:57. > :15:59.is something that is quite interesting, if you look at how the
:16:00. > :16:03.euro was done over the past year, it has become a lot stronger. A picture
:16:04. > :16:05.of Mr Broadbent looking very relaxed, taking a relaxed attitude
:16:06. > :16:14.towards interest rates. You're watching Business Live -
:16:15. > :16:18.our top story... Some of the world's biggest internet
:16:19. > :16:20.companies are taking part in a protest against proposed
:16:21. > :16:24.changes to US rules on the equal treatment of internet traffic,
:16:25. > :16:27.or what's known as net neutrality. A quick look at how
:16:28. > :16:36.markets are faring.... The markets in Europe have been open
:16:37. > :16:39.for about 45 minutes. You can see they are all up there in the green.
:16:40. > :16:44.Markets around the world all waiting to hear from Janet Yellin, the chair
:16:45. > :16:52.of the Federal reserve of the US. She is due to be speaking in the
:16:53. > :16:54.afternoon. Any more tightening of monetary policy will see some sort
:16:55. > :16:57.of impact on market trade. Let's get the Inside Track
:16:58. > :16:59.on what it takes to attract the brightest minds in the highly
:17:00. > :17:06.competitive tech industry. Gordon Eden is a London-based
:17:07. > :17:08.recruitment firm, which was It works with some of the world's
:17:09. > :17:12.biggest companies, including HSBC, The company is in hot demand,
:17:13. > :17:16.and not just from clients. It's already rejected
:17:17. > :17:17.five takeover approaches We're joined by Sophie Eden,
:17:18. > :17:29.co-founder of Gordon Eden. Good to have you with us, welcomed
:17:30. > :17:35.the Business Live. So you look for young, savvy tech start-up people,
:17:36. > :17:42.and match them to more established companies. What gave you that idea?
:17:43. > :17:46.We set up Gordon Eden three and a half years ago, and we felt at the
:17:47. > :17:49.time there was no search firm that truly operated across post of those
:17:50. > :17:53.industries, in terms of the start-up space and the traditional corporate
:17:54. > :17:59.'s. We felt that traditional corporate is needed to innovate,
:18:00. > :18:02.protect themselves from future disruption, and we were looking to
:18:03. > :18:07.the start-up community to find some of that talent in order to do that,
:18:08. > :18:10.and on the flip side start-ups were being funded, and they needed people
:18:11. > :18:15.from the corporate world, in order to help them to scale and achieve
:18:16. > :18:18.their business goals. So we set up the business in order to connect
:18:19. > :18:22.those two worlds together, and the other thing is as well, because a
:18:23. > :18:26.lot of businesses kind of ignore a lot of that start-up community,
:18:27. > :18:33.because believe they can't pay the traditional search fees, you kind of
:18:34. > :18:37.lose access to that talent pool. Recruitment businesses? Absolutely.
:18:38. > :18:41.So you are trying to match high-flying tech minds, perhaps
:18:42. > :18:43.younger than these companies might naturally recruit, the very
:18:44. > :18:47.established, perhaps more traditional firms. Is there a
:18:48. > :18:49.reluctance by some of the people you are trying to recruit a go into the
:18:50. > :18:54.traditional firms, because they might find it perhaps more exciting
:18:55. > :18:57.or edgy to work for a start-up, a smaller company where they feel they
:18:58. > :19:02.have more influence and can move more quickly? A few years ago there
:19:03. > :19:05.was much more of a them and us culture and they was a bit more push
:19:06. > :19:10.back, but there is much more movement between the two worlds now.
:19:11. > :19:13.A tech mind, as you say, is also very excited by the opportunity to
:19:14. > :19:18.scale something, to have such a wide audience, to have the funds to do
:19:19. > :19:21.that as well, because sometimes it can be frustrating operating on a
:19:22. > :19:27.shoestring budget. So to be to do that in a big corporate with a big
:19:28. > :19:31.branding scale is very exciting and a different challenge. Corporates
:19:32. > :19:36.are much more open to having these mines in the businesses because they
:19:37. > :19:39.need to adapt and they know that. You have only been running for three
:19:40. > :19:46.and a half years, five takeover bids. How does that feel? It feels
:19:47. > :19:49.great, very exciting. I think particularly in the current climate
:19:50. > :19:54.we really believe in what we are doing and we really believe that
:19:55. > :19:58.there is a huge opportunity, and it is very exciting to be working with
:19:59. > :20:02.businesses that feel that too. That is energising and exciting. There's
:20:03. > :20:04.a huge amount of change going on, a lot of investment going into these
:20:05. > :20:08.businesses, and so for us at Gordon businesses, and so for us at Gordon
:20:09. > :20:12.Eden it is about doing what we are doing and keeping doing it and
:20:13. > :20:15.supporting these businesses grow. Reading a little bit about some of
:20:16. > :20:19.the work you have done with some of the bigger brands, there was one
:20:20. > :20:23.panel where you were recruiting and you had Mark Zuckerberg on the
:20:24. > :20:29.panel, where you sitting alongside him? We weren't in the interview
:20:30. > :20:31.ourselves, but it is high stakes, we are looking for needles in
:20:32. > :20:35.haystacks, so we pride ourselves on being able to do that, again based
:20:36. > :20:39.on the access to a talent for that we don't believe others have. So if
:20:40. > :20:43.someone is watching and they think they might fit the bill, what is the
:20:44. > :20:47.key thing you are looking for, that would make someone stand out? It is
:20:48. > :20:52.an attitude and an approach, more than anything. It is being able to
:20:53. > :20:56.work in lots of different environments, and is changing and
:20:57. > :21:02.moving environments. Since 2001, three .5 million new jobs have been
:21:03. > :21:05.created down the new technology, so it is constantly evolving and
:21:06. > :21:08.changing, and that is why so many young successful people who have
:21:09. > :21:12.been able to do well in both those arenas. You are doing this in
:21:13. > :21:15.London, are there any other companies doing this worldwide, or
:21:16. > :21:27.are you thinking about punching out globally? 30% of our business is in
:21:28. > :21:31.the US. We stay true to what we're good at but we also have experience
:21:32. > :21:35.of placing people in parts of Europe and also Australia, and we move
:21:36. > :21:39.people across. A lot of our searches are global, in terms of the
:21:40. > :21:44.candidate pulls we're looking at. Do people get an e-mail out of the
:21:45. > :21:47.blue, a phone call? We spend a huge amount of time networking, I have
:21:48. > :21:51.over ten years experience, my business partner has 20, we spend
:21:52. > :21:56.all our day meeting people and networking. It is not just a case of
:21:57. > :21:59.sending an e-mail or picking up the phone, because these people get
:22:00. > :22:05.approached probably about 30 times a day, so having access to those
:22:06. > :22:06.networks is critical, as well as keeping a fresh approach. Thank you
:22:07. > :22:09.very much. The head of US bank JP Morgan,
:22:10. > :22:12.one of the City of London's biggest employers, has told the BBC that
:22:13. > :22:15.Brexit could easily mean many of his 16,000 UK employees
:22:16. > :22:17.lose their jobs in London. Jamie Dimon was speaking
:22:18. > :22:20.to our business editor Simon Jack Simon Jack in Paris,
:22:21. > :22:22.as the new French government made another pitch for bankers
:22:23. > :22:34.to relocate to Paris after the UK In the negotiating table you
:22:35. > :22:37.sometimes relies the other person has more cards, and there is no
:22:38. > :22:43.question that Europe has more cards to play. You one say 4000 jobs, new
:22:44. > :22:52.say that it may well be true? Sure, easily. Even more? I am hoping it is
:22:53. > :22:58.just a few hundred. We hope it is none, but yes, we are negotiating
:22:59. > :23:02.with Germany how many. You have seen countries arguing for example, we
:23:03. > :23:05.want our data centres in the country, and that will become part
:23:06. > :23:07.of the trade negotiation, and yet we don't know the outcome.
:23:08. > :23:09.What other business stories has the media been
:23:10. > :23:12.Richard Dunbar, Investment Director at Aberdeen Asset
:23:13. > :23:14.Richard Dunbar, Investment Director at Aberdeen Asset Management,
:23:15. > :23:24.We will start with that Twitter question, this company, brand lust,
:23:25. > :23:28.introduces $3, selling everything the $3, basic consumer condiments,
:23:29. > :23:36.peanut butter and Mermoz, and they say that people Trevor Pryce over
:23:37. > :23:40.brand. -- and mayonnaise. -- people don't for price over brand. People
:23:41. > :23:46.said it spends how ethical the products are. One says taste and
:23:47. > :23:50.quality as the deciding factor. This one says it depends on what type of
:23:51. > :23:55.goods, but mostly it's the price that affects my choice. Richard,
:23:56. > :24:00.what affects your choice? I don't believe that it is just the price,
:24:01. > :24:03.my daughter and her generation, even our generation, I think brands are
:24:04. > :24:08.still pretty popular. I can see a place of this in the market. What is
:24:09. > :24:16.interesting is that it's brand is that it is brand less. I think that
:24:17. > :24:19.story will not last long, I suspect people like proper brands, and
:24:20. > :24:24.something they can get their teeth into and feel they have got
:24:25. > :24:27.something of value and looks good. We are saying earlier about the
:24:28. > :24:31.brand-new have had in your family household from when you were growing
:24:32. > :24:35.up can affect you. I remember thinking, what washing powder do I
:24:36. > :24:39.buy, and I have used the same one of since. The company say that
:24:40. > :24:42.millennials are not interested in the brands of their parents or
:24:43. > :24:46.perhaps not even interested in brands, but identify that. They are
:24:47. > :24:54.interested in their own brands and companies -- but I don't buy that.
:24:55. > :24:57.New York Times, a baker 's crusade rescuing the famed French blue
:24:58. > :25:00.lingerie. This is interesting, perhaps that surely all of us have
:25:01. > :25:04.been in France can spent two weeks in France and enjoy the bread and a
:25:05. > :25:07.copy in the sunshine. But the problem is we are there for two
:25:08. > :25:11.weeks and then we go away, and the trends that affect bread sales
:25:12. > :25:14.globally are the same as in France. People go to supermarkets, more
:25:15. > :25:18.healthy eating and there is not the demand was. But that the lingerie in
:25:19. > :25:27.every town, and there is a real focus and -- that boulangerie. It is
:25:28. > :25:30.very much part and parcel of the experience, but not just bus when we
:25:31. > :25:35.dip in and disappear but it is people's livelihoods. These are
:25:36. > :25:38.traditionally very small, what they call mum and pop businesses, who
:25:39. > :25:46.would struggle to survive unless they have that regular custom. Thank
:25:47. > :25:48.you very much. There will be more business news
:25:49. > :25:52.throughout the day on the BBC Live web page and on World Business
:25:53. > :26:12.Report. Hello, good morning. A lot of cloud
:26:13. > :26:15.to start the day, with heavy, persistent rain across southern and
:26:16. > :26:16.south-eastern parts of England, the conditions