12/07/2017 BBC Business Live


Download Subtitles

SRT

ASS


12/07/2017

A look at the global business stories.


Similar Content

Browse content similar to 12/07/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

This is Business Live from BBC News with Ben Bland and Rachel Horne.

:00:11.:00:13.

Hundreds of top websites stage a protest over plans to scrap net

:00:14.:00:17.

Live from London, that's our top story on Wednesday 12th July.

:00:18.:00:36.

The changes would mean internet providers don't have to treat

:00:37.:00:40.

all our data equally, so what could America's changes mean

:00:41.:00:42.

Also in the programme: Calling Spotify's tune.

:00:43.:00:49.

The music streaming service signs a big deal to access Sony's music

:00:50.:00:52.

The markets are modestly higher across the main European indices. We

:00:53.:01:08.

will look at a sharp and at Wall Street on the day when the Federal

:01:09.:01:12.

Reserve chair is due to give testimony to congress.

:01:13.:01:15.

And from the up-start start-up to the boardroom.

:01:16.:01:17.

We meet Sophie Eden, the recruitment entrepreneur whose

:01:18.:01:19.

matching top tech talent with established names.

:01:20.:01:26.

And, as another new startup launches an online store selling unbranded

:01:27.:01:28.

consumer basics all for $3, we want to know, when it comes

:01:29.:01:31.

to your peanut butter or hand soap what's more important,

:01:32.:01:34.

Your tweets are already coming in. Keep them coming.

:01:35.:01:51.

Get ready to take a deep breath when you go online today

:01:52.:01:56.

because some of the most popular websites will be running slowly.

:01:57.:01:59.

Companies like Facebook, Netflix, and Amazon are taking part

:02:00.:02:02.

in a protest against changes being made to US rules

:02:03.:02:05.

If your internet provider is the road and the cars

:02:06.:02:18.

are content, then "net neutrality" stops the internet provider setting

:02:19.:02:22.

up a fast lane for those prepared to pay to get there quicker.

:02:23.:02:26.

Such a fast lane means the companies that can afford to use

:02:27.:02:29.

it can get their content, for example data heavy videos,

:02:30.:02:31.

Giving them an advantage over their competitors.

:02:32.:02:38.

The companies and activists behind today's action argue treating

:02:39.:02:41.

all internet traffic equally is a matter of fairness,

:02:42.:02:45.

limits censorship and ensures smaller companies are not

:02:46.:02:49.

disadvantaged simply because they have less money.

:02:50.:02:53.

Since President Trump took office the US Federal Communications

:02:54.:02:56.

Commission has voted to overturn "net neutrality" rules.

:02:57.:03:00.

It's new chair says doing so will encourage internet providers

:03:01.:03:03.

This is a contentious issue across the world.

:03:04.:03:11.

The countries in blue currently make sure all data is treated equally.

:03:12.:03:15.

Richard Kramer is the Founder and Managing Partner

:03:16.:03:24.

of Arete Research, which looks at technology shares for investors.

:03:25.:03:32.

Then mentioned the go slow that many of those big-name websites will be

:03:33.:03:39.

putting in today. Is that something users around the world will

:03:40.:03:44.

experience? It is something users will see globally if for no other

:03:45.:03:47.

reason than the companies participating well wanted to be

:03:48.:03:54.

global issue. What is the issue? It is about money and the restrictions

:03:55.:03:58.

that the FCC rules will place on carriers in the US required to give

:03:59.:04:04.

equal access the different content. You have the largest cable company,

:04:05.:04:13.

$200 billion companies collectively of sales, $70 billion of cash flow,

:04:14.:04:20.

investing $25 billion a year, so the notion this is deterring investment

:04:21.:04:26.

is fanciful. You have Google, Amazon and Netflix championing the rights

:04:27.:04:31.

of small businesses or smaller sites which might be disadvantaged in the

:04:32.:04:35.

name of free speech. The huge commercial enterprises who want to

:04:36.:04:39.

make sure they do not bear the cost of reaching the last mile to the

:04:40.:04:44.

consumer. Who should bear the cost? The consumer bears the cost in

:04:45.:04:48.

paying for their broadband and most consumers would believe that the

:04:49.:04:56.

provider should not tell them what they can consume in terms of

:04:57.:05:04.

content. In other plans you can have faster speeds, so there are ways to

:05:05.:05:08.

differentiate broadband services. Which content is provided is very

:05:09.:05:13.

contentious because it allows a company like a TNT, trying to take

:05:14.:05:19.

over Time Warner which owns HBO, to say they charge more for competitors

:05:20.:05:24.

of HBO's competitors than for their own services. It applies in other

:05:25.:05:32.

aspects of life. If you are prepared to pay more you can get a faster

:05:33.:05:36.

service, for example a toll road, there is one in the UK companies

:05:37.:05:41.

that can afford to use it their goods will get places faster, it

:05:42.:05:47.

gives them competitive advantage, is that not part of business? It says

:05:48.:05:52.

that I am going to decide which brand of car can ride on the road.

:05:53.:05:58.

But if they are willing to pay they can get on? From the content

:05:59.:06:03.

provider's point of view this would pass on the raise to consumers and

:06:04.:06:12.

chill the access of free speech. You would place on the hands of the

:06:13.:06:15.

provider is the power to decide which takes of content got through

:06:16.:06:21.

or to set the rules. In the case of the US broadband services about

:06:22.:06:26.

twice as expensive in the UK. It is a very contentious issue in terms of

:06:27.:06:29.

how the consumer ends up paying for the services. Thank you.

:06:30.:06:34.

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

:06:35.:06:37.

The US Department of Homeland Security says that it may

:06:38.:06:40.

soon lift the ban preventing passengers from taking

:06:41.:06:42.

A spokesman said that airlines flying from the four affecting

:06:43.:06:51.

Middle Eastern airports would need to demonstrate enhanced

:06:52.:06:53.

security measures before the restrictions were lifted.

:06:54.:06:55.

Takata is recalling nearly three million more airbags

:06:56.:07:00.

Faulty devices have been linked to 17 deaths and more

:07:01.:07:07.

What amounts to the biggest automotive recall in history.

:07:08.:07:21.

The sale of broadcast rights helped Premier League football clubs rake

:07:22.:07:28.

in $4.6 billion in the 2015 to 2016 season, this according

:07:29.:07:31.

TV rights accounted for more than half of all the income

:07:32.:07:35.

generated by top flight English football teams.

:07:36.:07:36.

The report said that a new domestic TV deal means overall revenues

:07:37.:07:39.

The music streaming service Spotify has signed a big deal

:07:40.:07:43.

It's being seen as crucial to the Swedish firm's plans to sell

:07:44.:07:52.

Monica Miller is in Singapore - what have they agreed?

:07:53.:07:59.

These Swedish music streaming services on its way to becoming

:08:00.:08:06.

going public. It covers Beyonce and Adele and has agreed to reduce

:08:07.:08:12.

royalty payments if sport of Phi restricts new albums to two weeks.

:08:13.:08:20.

It is on the back of a deal which represents more than 20,000

:08:21.:08:24.

independent labels. The online service has yet to turn a profit but

:08:25.:08:30.

that will allow them to cut down on its biggest expense, royalty

:08:31.:08:33.

payments to the music industry. It is in a much bigger position

:08:34.:08:37.

financially to leave the groundwork for a deal by the end of the year.

:08:38.:08:41.

It was recently valued at $13 billion. Thank you.

:08:42.:08:46.

A mixed picture for Asian shares on Wednesday.

:08:47.:08:57.

Tokyo's Nikkei closed lower - Japanese exporters took a hit

:08:58.:08:59.

as the dollar weakened against the yen.

:09:00.:09:01.

A relatively stronger yen makes their products more

:09:02.:09:03.

A big factor that could affect the dollar later is the testimony

:09:04.:09:09.

by Federal Reserve Chair Janet Yellen.

:09:10.:09:11.

She'll appear before Congress to update them on the state

:09:12.:09:13.

Investors will watch closely for clues about future

:09:14.:09:17.

On this side of the Atlantic, comments by the Deputy Governor

:09:18.:09:27.

of the Bank of England saying he's not ready to raise interest rates

:09:28.:09:31.

caused sterling to fall - hitting a two week low

:09:32.:09:33.

against the dollar and eight month low against the euro.

:09:34.:09:36.

Analysts will be watching for the latest employment

:09:37.:09:39.

data from the UK due in a couple of hours.

:09:40.:09:45.

That's how the equity markets look in Europe.

:09:46.:09:48.

And Michelle Fleury has the details about what's ahead

:09:49.:09:50.

Janet Yellen goes to Capitol Hill and investors want to know what she

:09:51.:10:02.

will say about interest rate policy. It is two days of testimony on

:10:03.:10:07.

Wednesday during her semi annual appearance before congress. She is

:10:08.:10:11.

likely to face questions about the economy, the path of interest rates

:10:12.:10:15.

and when the central bank plans to wind down its balance sheet.

:10:16.:10:20.

Regulatory issues are likely to come up. She has defended rules post on

:10:21.:10:27.

the big banks after the 2008 financial crisis. Republican critics

:10:28.:10:32.

argue the limit economic growth. This could be her final appearance

:10:33.:10:38.

before congress. Her four year term ended in February and Donald Trump

:10:39.:10:43.

has not indicated whether he plans to nominate her for a second term.

:10:44.:10:45.

Richard Dunbar is the Investment Director

:10:46.:10:47.

Sterling has hit a two mike legal against the dollar and eight month

:10:48.:11:02.

low against the euro. An interesting year. This time last year we were

:11:03.:11:09.

talking about European politics and the risk to the euro but it has been

:11:10.:11:14.

one of the best currencies in the world, up almost 15% against the

:11:15.:11:19.

dollar over the past year. We thought sterling was likely to be

:11:20.:11:23.

weak but it has been pretty strong against the dollar but weak against

:11:24.:11:30.

the euro. The movement on sterling, just how sensitive investors are to

:11:31.:11:34.

any clues about interest rate rises and the directions the central banks

:11:35.:11:40.

are taking, Stirling responding to comments by the deputy governor.

:11:41.:11:45.

Yes. From the central banks the message has been about getting

:11:46.:11:48.

interest rates up. That resulted in sterling rising but recent comments

:11:49.:11:55.

have countered that view. There is a feeling that the place of money is

:11:56.:11:58.

too low and they want to get that up. Janet Yellen is going to be

:11:59.:12:03.

speaking about what she believes is in store for the US economy. What do

:12:04.:12:08.

you expect her to see an do you expect much market reaction? The US

:12:09.:12:14.

economy is in pretty good health and has been managed pretty well by

:12:15.:12:17.

Janet Yellen and her team. She would like to get interest rates up a

:12:18.:12:21.

little but the problem is there is no inflation and that is her target.

:12:22.:12:27.

That is difficult. She feels the prize money is too low and it is

:12:28.:12:32.

causing perhaps irrational exuberance behaviour in markets and

:12:33.:12:35.

she would like to counter that. We so that when some shares were

:12:36.:12:44.

offered is. We talked about it yesterday. Falling below the initial

:12:45.:12:49.

offer price and the form that helped launch the shares has downgraded

:12:50.:12:53.

them below what it launched out. Investment bankers changing their

:12:54.:12:56.

view on things is perhaps not new but the scrutiny of the public

:12:57.:13:01.

markets on some of these what looked to me very expensive new issues on

:13:02.:13:06.

what is definitely per governments around how they are run, that

:13:07.:13:11.

scrutiny is causing problems and I expect we will see that continue

:13:12.:13:15.

with others in the pipeline. You will be back to discuss the papers.

:13:16.:13:27.

We get the inside track on the technology world.

:13:28.:13:38.

The Competition and Markets Authority has announced that Tesco's

:13:39.:13:40.

bid for Booker will be investigated further.

:13:41.:13:42.

The regulator says it has concerns about the impact the ?3.7 billion

:13:43.:13:49.

deal could have on small local stores.

:13:50.:13:51.

Katie Prescott is in our business newsroom.

:13:52.:13:53.

This goes back to the ?3.7 million deal between Tesco and Book of the

:13:54.:14:08.

wholesaler which owns convenience stores Budgens, Premier and Londis.

:14:09.:14:13.

It was seen as a bit of up perfect marriage when it was first announced

:14:14.:14:18.

in the competition and markets laboratory seemed to agree because

:14:19.:14:21.

they jumped on it. They had an initial look into what was going on

:14:22.:14:26.

and they were concerned there might indeed be competition issues. This

:14:27.:14:31.

morning they have said they have found 350 local areas where they

:14:32.:14:36.

think that showers and shops might be affected so they are selling it

:14:37.:14:41.

for a second look. What happens next? It will be looked at by

:14:42.:14:46.

another panel within the CMA who will look at the impact on shoppers

:14:47.:14:50.

than some of the shops that poker supplies. They have 24 weeks to do

:14:51.:14:56.

so so we should get a report into their findings by Christmas. Looking

:14:57.:15:02.

at the Tesco share price it is only down slightly, about 0.5%, though

:15:03.:15:08.

investors do not seem that bothered. Thank you. He thinks it is difficult

:15:09.:15:40.

for given that, he's not yet ready to raise interest rates. That has

:15:41.:15:43.

had a knock-on effect on the markets. We have already seen

:15:44.:15:47.

sterling suffering somewhat, having a bit of a fall, falling to an

:15:48.:15:52.

eight-month low against the euro. As Richard Dunbar was explaining, that

:15:53.:15:56.

is something that is quite interesting, if you look at how the

:15:57.:15:59.

euro was done over the past year, it has become a lot stronger. A picture

:16:00.:16:03.

of Mr Broadbent looking very relaxed, taking a relaxed attitude

:16:04.:16:05.

towards interest rates. You're watching Business Live -

:16:06.:16:14.

our top story... Some of the world's biggest internet

:16:15.:16:18.

companies are taking part in a protest against proposed

:16:19.:16:20.

changes to US rules on the equal treatment of internet traffic,

:16:21.:16:24.

or what's known as net neutrality. A quick look at how

:16:25.:16:27.

markets are faring.... The markets in Europe have been open

:16:28.:16:36.

for about 45 minutes. You can see they are all up there in the green.

:16:37.:16:39.

Markets around the world all waiting to hear from Janet Yellin, the chair

:16:40.:16:44.

of the Federal reserve of the US. She is due to be speaking in the

:16:45.:16:52.

afternoon. Any more tightening of monetary policy will see some sort

:16:53.:16:54.

of impact on market trade. Let's get the Inside Track

:16:55.:16:57.

on what it takes to attract the brightest minds in the highly

:16:58.:16:59.

competitive tech industry. Gordon Eden is a London-based

:17:00.:17:06.

recruitment firm, which was It works with some of the world's

:17:07.:17:08.

biggest companies, including HSBC, The company is in hot demand,

:17:09.:17:12.

and not just from clients. It's already rejected

:17:13.:17:16.

five takeover approaches We're joined by Sophie Eden,

:17:17.:17:17.

co-founder of Gordon Eden. Good to have you with us, welcomed

:17:18.:17:29.

the Business Live. So you look for young, savvy tech start-up people,

:17:30.:17:35.

and match them to more established companies. What gave you that idea?

:17:36.:17:42.

We set up Gordon Eden three and a half years ago, and we felt at the

:17:43.:17:46.

time there was no search firm that truly operated across post of those

:17:47.:17:49.

industries, in terms of the start-up space and the traditional corporate

:17:50.:17:53.

's. We felt that traditional corporate is needed to innovate,

:17:54.:17:59.

protect themselves from future disruption, and we were looking to

:18:00.:18:02.

the start-up community to find some of that talent in order to do that,

:18:03.:18:07.

and on the flip side start-ups were being funded, and they needed people

:18:08.:18:10.

from the corporate world, in order to help them to scale and achieve

:18:11.:18:15.

their business goals. So we set up the business in order to connect

:18:16.:18:18.

those two worlds together, and the other thing is as well, because a

:18:19.:18:22.

lot of businesses kind of ignore a lot of that start-up community,

:18:23.:18:26.

because believe they can't pay the traditional search fees, you kind of

:18:27.:18:33.

lose access to that talent pool. Recruitment businesses? Absolutely.

:18:34.:18:37.

So you are trying to match high-flying tech minds, perhaps

:18:38.:18:41.

younger than these companies might naturally recruit, the very

:18:42.:18:43.

established, perhaps more traditional firms. Is there a

:18:44.:18:47.

reluctance by some of the people you are trying to recruit a go into the

:18:48.:18:49.

traditional firms, because they might find it perhaps more exciting

:18:50.:18:54.

or edgy to work for a start-up, a smaller company where they feel they

:18:55.:18:57.

have more influence and can move more quickly? A few years ago there

:18:58.:19:02.

was much more of a them and us culture and they was a bit more push

:19:03.:19:05.

back, but there is much more movement between the two worlds now.

:19:06.:19:10.

A tech mind, as you say, is also very excited by the opportunity to

:19:11.:19:13.

scale something, to have such a wide audience, to have the funds to do

:19:14.:19:18.

that as well, because sometimes it can be frustrating operating on a

:19:19.:19:21.

shoestring budget. So to be to do that in a big corporate with a big

:19:22.:19:27.

branding scale is very exciting and a different challenge. Corporates

:19:28.:19:31.

are much more open to having these mines in the businesses because they

:19:32.:19:36.

need to adapt and they know that. You have only been running for three

:19:37.:19:39.

and a half years, five takeover bids. How does that feel? It feels

:19:40.:19:46.

great, very exciting. I think particularly in the current climate

:19:47.:19:49.

we really believe in what we are doing and we really believe that

:19:50.:19:54.

there is a huge opportunity, and it is very exciting to be working with

:19:55.:19:58.

businesses that feel that too. That is energising and exciting. There's

:19:59.:20:02.

a huge amount of change going on, a lot of investment going into these

:20:03.:20:04.

businesses, and so for us at Gordon businesses, and so for us at Gordon

:20:05.:20:08.

Eden it is about doing what we are doing and keeping doing it and

:20:09.:20:12.

supporting these businesses grow. Reading a little bit about some of

:20:13.:20:15.

the work you have done with some of the bigger brands, there was one

:20:16.:20:19.

panel where you were recruiting and you had Mark Zuckerberg on the

:20:20.:20:23.

panel, where you sitting alongside him? We weren't in the interview

:20:24.:20:29.

ourselves, but it is high stakes, we are looking for needles in

:20:30.:20:31.

haystacks, so we pride ourselves on being able to do that, again based

:20:32.:20:35.

on the access to a talent for that we don't believe others have. So if

:20:36.:20:39.

someone is watching and they think they might fit the bill, what is the

:20:40.:20:43.

key thing you are looking for, that would make someone stand out? It is

:20:44.:20:47.

an attitude and an approach, more than anything. It is being able to

:20:48.:20:52.

work in lots of different environments, and is changing and

:20:53.:20:56.

moving environments. Since 2001, three .5 million new jobs have been

:20:57.:21:02.

created down the new technology, so it is constantly evolving and

:21:03.:21:05.

changing, and that is why so many young successful people who have

:21:06.:21:08.

been able to do well in both those arenas. You are doing this in

:21:09.:21:12.

London, are there any other companies doing this worldwide, or

:21:13.:21:15.

are you thinking about punching out globally? 30% of our business is in

:21:16.:21:27.

the US. We stay true to what we're good at but we also have experience

:21:28.:21:31.

of placing people in parts of Europe and also Australia, and we move

:21:32.:21:35.

people across. A lot of our searches are global, in terms of the

:21:36.:21:39.

candidate pulls we're looking at. Do people get an e-mail out of the

:21:40.:21:44.

blue, a phone call? We spend a huge amount of time networking, I have

:21:45.:21:47.

over ten years experience, my business partner has 20, we spend

:21:48.:21:51.

all our day meeting people and networking. It is not just a case of

:21:52.:21:56.

sending an e-mail or picking up the phone, because these people get

:21:57.:21:59.

approached probably about 30 times a day, so having access to those

:22:00.:22:05.

networks is critical, as well as keeping a fresh approach. Thank you

:22:06.:22:06.

very much. The head of US bank JP Morgan,

:22:07.:22:09.

one of the City of London's biggest employers, has told the BBC that

:22:10.:22:12.

Brexit could easily mean many of his 16,000 UK employees

:22:13.:22:15.

lose their jobs in London. Jamie Dimon was speaking

:22:16.:22:17.

to our business editor Simon Jack Simon Jack in Paris,

:22:18.:22:20.

as the new French government made another pitch for bankers

:22:21.:22:22.

to relocate to Paris after the UK In the negotiating table you

:22:23.:22:34.

sometimes relies the other person has more cards, and there is no

:22:35.:22:37.

question that Europe has more cards to play. You one say 4000 jobs, new

:22:38.:22:43.

say that it may well be true? Sure, easily. Even more? I am hoping it is

:22:44.:22:52.

just a few hundred. We hope it is none, but yes, we are negotiating

:22:53.:22:58.

with Germany how many. You have seen countries arguing for example, we

:22:59.:23:02.

want our data centres in the country, and that will become part

:23:03.:23:05.

of the trade negotiation, and yet we don't know the outcome.

:23:06.:23:07.

What other business stories has the media been

:23:08.:23:09.

Richard Dunbar, Investment Director at Aberdeen Asset

:23:10.:23:12.

Richard Dunbar, Investment Director at Aberdeen Asset Management,

:23:13.:23:14.

We will start with that Twitter question, this company, brand lust,

:23:15.:23:24.

introduces $3, selling everything the $3, basic consumer condiments,

:23:25.:23:28.

peanut butter and Mermoz, and they say that people Trevor Pryce over

:23:29.:23:36.

brand. -- and mayonnaise. -- people don't for price over brand. People

:23:37.:23:40.

said it spends how ethical the products are. One says taste and

:23:41.:23:46.

quality as the deciding factor. This one says it depends on what type of

:23:47.:23:50.

goods, but mostly it's the price that affects my choice. Richard,

:23:51.:23:55.

what affects your choice? I don't believe that it is just the price,

:23:56.:24:00.

my daughter and her generation, even our generation, I think brands are

:24:01.:24:03.

still pretty popular. I can see a place of this in the market. What is

:24:04.:24:08.

interesting is that it's brand is that it is brand less. I think that

:24:09.:24:16.

story will not last long, I suspect people like proper brands, and

:24:17.:24:19.

something they can get their teeth into and feel they have got

:24:20.:24:24.

something of value and looks good. We are saying earlier about the

:24:25.:24:27.

brand-new have had in your family household from when you were growing

:24:28.:24:31.

up can affect you. I remember thinking, what washing powder do I

:24:32.:24:35.

buy, and I have used the same one of since. The company say that

:24:36.:24:39.

millennials are not interested in the brands of their parents or

:24:40.:24:42.

perhaps not even interested in brands, but identify that. They are

:24:43.:24:46.

interested in their own brands and companies -- but I don't buy that.

:24:47.:24:54.

New York Times, a baker 's crusade rescuing the famed French blue

:24:55.:24:57.

lingerie. This is interesting, perhaps that surely all of us have

:24:58.:25:00.

been in France can spent two weeks in France and enjoy the bread and a

:25:01.:25:04.

copy in the sunshine. But the problem is we are there for two

:25:05.:25:07.

weeks and then we go away, and the trends that affect bread sales

:25:08.:25:11.

globally are the same as in France. People go to supermarkets, more

:25:12.:25:14.

healthy eating and there is not the demand was. But that the lingerie in

:25:15.:25:18.

every town, and there is a real focus and -- that boulangerie. It is

:25:19.:25:27.

very much part and parcel of the experience, but not just bus when we

:25:28.:25:30.

dip in and disappear but it is people's livelihoods. These are

:25:31.:25:35.

traditionally very small, what they call mum and pop businesses, who

:25:36.:25:38.

would struggle to survive unless they have that regular custom. Thank

:25:39.:25:46.

you very much. There will be more business news

:25:47.:25:48.

throughout the day on the BBC Live web page and on World Business

:25:49.:25:52.

Report. Hello, good morning. A lot of cloud

:25:53.:26:12.

to start the day, with heavy, persistent rain across southern and

:26:13.:26:15.

south-eastern parts of England, the conditions

:26:16.:26:16.