12/07/2017 BBC Business Live


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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


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