12/07/2017 BBC Business Live

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

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

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

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

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

Also in the programme: Calling Spotify's tune.

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

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

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

Reserve chair is due to give testimony to congress.

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

We meet Sophie Eden, the recruitment entrepreneur whose

matching top tech talent with established names.

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

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

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

Your tweets are already coming in. Keep them coming.

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

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

Companies like Facebook, Netflix, and Amazon are taking part

in a protest against changes being made to US rules

If your internet provider is the road and the cars

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

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

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

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

Giving them an advantage over their competitors.

The companies and activists behind today's action argue treating

all internet traffic equally is a matter of fairness,

limits censorship and ensures smaller companies are not

disadvantaged simply because they have less money.

Since President Trump took office the US Federal Communications

Commission has voted to overturn "net neutrality" rules.

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

This is a contentious issue across the world.

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

Richard Kramer is the Founder and Managing Partner

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

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

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

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

reason than the companies participating well wanted to be

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

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

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

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

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

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

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

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

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

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

paying for their broadband and most consumers would believe that the

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

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

differentiate broadband services. Which content is provided is very

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The US Department of Homeland Security says that it may

soon lift the ban preventing passengers from taking

A spokesman said that airlines flying from the four affecting

Middle Eastern airports would need to demonstrate enhanced

security measures before the restrictions were lifted.

Takata is recalling nearly three million more airbags

Faulty devices have been linked to 17 deaths and more

What amounts to the biggest automotive recall in history.

The sale of broadcast rights helped Premier League football clubs rake

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

TV rights accounted for more than half of all the income

generated by top flight English football teams.

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

The music streaming service Spotify has signed a big deal

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

Monica Miller is in Singapore - what have they agreed?

These Swedish music streaming services on its way to becoming

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

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

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

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

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

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

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

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

A mixed picture for Asian shares on Wednesday.

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

as the dollar weakened against the yen.

A relatively stronger yen makes their products more

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

by Federal Reserve Chair Janet Yellen.

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

Investors will watch closely for clues about future

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

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

caused sterling to fall - hitting a two week low

against the dollar and eight month low against the euro.

Analysts will be watching for the latest employment

data from the UK due in a couple of hours.

That's how the equity markets look in Europe.

And Michelle Fleury has the details about what's ahead

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

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

Wednesday during her semi annual appearance before congress. She is

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

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

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

the big banks after the 2008 financial crisis. Republican critics

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

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

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

Richard Dunbar is the Investment Director

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

causing perhaps irrational exuberance behaviour in markets and

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

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

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

them below what it launched out. Investment bankers changing their

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

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

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

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

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

We get the inside track on the technology world.

The Competition and Markets Authority has announced that Tesco's

bid for Booker will be investigated further.

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

deal could have on small local stores.

Katie Prescott is in our business newsroom.

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

wholesaler which owns convenience stores Budgens, Premier and Londis.

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

in the competition and markets laboratory seemed to agree because

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

of Mr Broadbent looking very relaxed, taking a relaxed attitude

towards interest rates. You're watching Business Live -

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

companies are taking part in a protest against proposed

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

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

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

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

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

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

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

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

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

competitive tech industry. Gordon Eden is a London-based

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

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

and not just from clients. It's already rejected

five takeover approaches We're joined by Sophie Eden,

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

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

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

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

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

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

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

protect themselves from future disruption, and we were looking to

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

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

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

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

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

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

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

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

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

younger than these companies might naturally recruit, the very

established, perhaps more traditional firms. Is there a

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

traditional firms, because they might find it perhaps more exciting

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

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

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

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

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

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

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

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

branding scale is very exciting and a different challenge. Corporates

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

work in lots of different environments, and is changing and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

very much. The head of US bank JP Morgan,

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

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

lose their jobs in London. Jamie Dimon was speaking

to our business editor Simon Jack Simon Jack in Paris,

as the new French government made another pitch for bankers

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

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

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

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

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

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

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

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

What other business stories has the media been

Richard Dunbar, Investment Director at Aberdeen Asset

Richard Dunbar, Investment Director at Aberdeen Asset Management,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

millennials are not interested in the brands of their parents or

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

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

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

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

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

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

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

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

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

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

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

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

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

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

you very much. There will be more business news

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

Report. Hello, good morning. A lot of cloud

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

south-eastern parts of England, the conditions