14/07/2017

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:00:00. > :00:07.This is Business Live from BBC News with Susannah

:00:08. > :00:11.Banking on better times - Wall Street's giants have been

:00:12. > :00:13.getting a bump from Trump, but what will their

:00:14. > :00:38.Live from London, that's our top story on Friday 14th July.

:00:39. > :00:41.Will profits soar for three of America's banking big guns?

:00:42. > :00:43.And what will they tell us about the state of

:00:44. > :00:49.Also in the programme, the company behind many of Amazon

:00:50. > :00:52.and Alibaba's warehouses in Asia and the US is set for

:00:53. > :00:55.And we'll have the latest from the financial markets -

:00:56. > :00:58.this is the picture in Europe as stocks around the world are

:00:59. > :01:04.And as the UK is warned that its public finances

:01:05. > :01:10.are in a perlious state, we'll be getting the inside track

:01:11. > :01:13.on that and the other big stories of the week with our economics

:01:14. > :01:17.Also today, as the payments giant Visa vows to put

:01:18. > :01:19.cash out of business, we want to know what do

:01:20. > :01:26.Let us know - just use the hashtag #BBCBizLive.

:01:27. > :01:31.Hello, and welcome to Business Live.

:01:32. > :01:34.We start on Wall Street, where three of the giants of US banking

:01:35. > :01:38.We are talking about Wells Fargo, Citigroup and -

:01:39. > :01:41.the biggest of them all - JP Morgan Chase.

:01:42. > :01:44.Investors have been betting that the good times are back

:01:45. > :01:46.for America's bankers thanks to the election of Donald Trump.

:01:47. > :01:48.That's helped stock markets hit record highs.

:01:49. > :01:54.Well, today's results could give us a better idea.

:01:55. > :01:57.Take a look at these share prices - especially JP Morgan's -

:01:58. > :02:03.They all got a boost from hopes he would help the US economy grow,

:02:04. > :02:08.The slow pace of policy change has, though, cooled that

:02:09. > :02:12.In particular, President Trump has promised to scrap the heavy

:02:13. > :02:13.regulation of banks brought in after the financial

:02:14. > :02:21.But his new more lenient rules, the Financial Choice Act,

:02:22. > :02:27.are unlikely to get through Congress in their current form.

:02:28. > :02:30.What could help the case is that the top banks

:02:31. > :02:32.all comfortably passed so-called stress tests last month.

:02:33. > :02:34.It basically means they've been judged financially solid enough,

:02:35. > :02:36.with ample money in reserve to withstand another

:02:37. > :02:44.And those tests could be eased in future.

:02:45. > :02:48.This week President Trump nominated this man, financier Randal Quarles,

:02:49. > :02:51.for a leading role in overseeing the banks at the Federal Reserve.

:02:52. > :02:54.He's seen as much more sympathetic to big banks.

:02:55. > :03:00.Ken Odeluga is a market analyst at City Index.

:03:01. > :03:06.Thank you for coming in. Let's start with the main bit, these results are

:03:07. > :03:15.coming out in a few hours, what are you expecting to hear? This is in

:03:16. > :03:19.many respects are holding water for the large six banks, we have these

:03:20. > :03:24.today and next weekend the last of the three. We are really only

:03:25. > :03:32.expecting growth in terms of earnings for JP Morgan and

:03:33. > :03:36.Citigroup. For Wells Fargo and BankAmerica, they are more likely to

:03:37. > :03:41.report earnings which are flat compared with the same quarter last

:03:42. > :03:44.year. So really reflective of the fact that generally speaking

:03:45. > :03:47.second-quarter earnings, first-quarter earnings are not

:03:48. > :03:55.necessarily the best banking earning quarters for the year, and really we

:03:56. > :03:58.are getting stronger results from JP Morgan. Susannah showed us some of

:03:59. > :04:02.the figures of where the share prices have been going up, not just

:04:03. > :04:06.affected by the results put external factors like Donald Trump's

:04:07. > :04:10.election, the Financial Choice Act, something the banks were looking

:04:11. > :04:14.forward to, explain why they wanted and how likely it is to happen? For

:04:15. > :04:19.many years banks have either complained or lobbied, I should say,

:04:20. > :04:26.that the low interest rate environment that we had up until the

:04:27. > :04:30.end of 2015 and also cumulatively probably the strongest regulatory

:04:31. > :04:35.regimes seen in decades had served to really crimp their net interest

:04:36. > :04:39.margins, the margins they actually managed to retain from lending and

:04:40. > :04:45.borrowing as profit. The reason why they wanted the deregulation was

:04:46. > :04:50.that it would enable them on the basis that they had strengthened

:04:51. > :04:53.their capital and were complying with all sorts of other rules,

:04:54. > :05:01.enable them to start to grow again. But of course that has got stuck in

:05:02. > :05:05.the logjam in Washington. Let's talk about the banking stress tests, we

:05:06. > :05:09.hear they all passed them with flying colours but how true are

:05:10. > :05:14.they? Before the financial crisis many of these banks passed the

:05:15. > :05:18.stress test. Can we really be a certain they could withstand another

:05:19. > :05:22.shock? There is always a possibility that of course many of them would

:05:23. > :05:26.not be able to withstand that shock but the fact is that many of the

:05:27. > :05:32.stress tests were the toughest stress tests in many ways of any

:05:33. > :05:38.stress tests that have been held on these banks, and the fact they

:05:39. > :05:43.passed speaks to the fact they have been forced to take all sorts of

:05:44. > :05:48.measures, dealer bridging, production of risky capital, asset

:05:49. > :05:52.sales, that sort of thing, that contributed to their ability to pass

:05:53. > :05:56.and, going forward, the stress tests, the difficulty will be

:05:57. > :06:00.ratcheted up yet again to a more qualitative level in a way that it

:06:01. > :06:05.is not necessarily just rules-based but based on their ability to

:06:06. > :06:13.demonstrate that they are compliant in spirit with what is required. I

:06:14. > :06:14.think we can have a bit more confidence in that.

:06:15. > :06:16.OK, thank you for your time. Let's take a look at some of

:06:17. > :06:19.the other stories making the news. Visa is set to offer up to $500,000

:06:20. > :06:23.to a selection of US-based companies willing to stop using cash

:06:24. > :06:29.as a form of payment. 50 restaurants and food vendors

:06:30. > :06:31.will receive $10,000 each Visa currently processes 59%

:06:32. > :06:37.of all card payments A racist AirBnB host has been fined

:06:38. > :06:41.$5000 by authorities in California after she discriminated

:06:42. > :06:45.against an Asian-American guest. Tami Barker cancelled Dyne Suh's

:06:46. > :06:48.booking, telling her in a message, "One word says it all -

:06:49. > :06:50.Asian." The fine was imposed due

:06:51. > :06:52.to a new agreement between AirBnB and California's Department

:06:53. > :06:56.of Fair Employment and Housing. Singapore's economy has narrowly

:06:57. > :07:00.dodged a recession after strong electronics exports helped it grow

:07:01. > :07:03.in the second quarter. It grew by just 0.4%

:07:04. > :07:05.between April and June. Revised figures show it had

:07:06. > :07:08.a sharper than expected contraction of 1.9% in the first three months

:07:09. > :07:10.of the year. Two quarters of contraction in a row

:07:11. > :07:27.constitute a technical recession. The company behind many of Amazon

:07:28. > :07:29.and Alibaba's warehouses is Asia and the US is set

:07:30. > :07:32.for an $11.6 billion takeover. Global Logistic Properties,

:07:33. > :07:34.which is based in Singapore, is the largest warehouse

:07:35. > :07:35.operator in Asia. Let's get more from Monica

:07:36. > :07:47.Miller in Singapore. This is a pretty big deal?

:07:48. > :07:50.It is, set to be Asia's biggest ever private equity deal. Global Logistic

:07:51. > :07:56.Properties have sealed the deal for more than 11 billion US dollars. The

:07:57. > :08:00.industrial property company has been aggressively expanding over the last

:08:01. > :08:06.two years due to the growing demand of online shopping. They currently

:08:07. > :08:11.have distribution centres in China, Japan and Brazil and part of that is

:08:12. > :08:14.a development company in the US which has warehouse properties in

:08:15. > :08:18.several different states and some of their largest tenants are Amazon,

:08:19. > :08:21.Starbucks and Williams and Sonoma. But the warehouse operator makes two

:08:22. > :08:25.thirds of its revenue from China where it has a dominant market

:08:26. > :08:29.position. The offer is well above the firm's market value of more than

:08:30. > :08:32.$9 billion. OK, Monica, thank you very much.

:08:33. > :08:35.Let's look at the financial markets. Global stocks are scaling record

:08:36. > :08:38.highs - equities in Asia rose The Nikkei ended higher

:08:39. > :08:42.with a weekly rise of 1%. The head of the Fed,

:08:43. > :08:47.the US Central Bank, Janet Yellen, said this week that US interest

:08:48. > :08:50.rates will continue to rise That was welcome news

:08:51. > :09:01.for many investors, who don't want to the era of cheap

:09:02. > :09:03.money ending quickly. Her comments have pushed up stocks

:09:04. > :09:06.in Europe as well this week - this is the picture

:09:07. > :09:17.so far this morning. A weaker opening in Frankfurt but

:09:18. > :09:17.France just about in positive territory.

:09:18. > :09:21.And Samira Hussain the details about what's ahead on Wall Street today.

:09:22. > :09:28.On Friday there are a few bits of economic data coming out that we

:09:29. > :09:32.should pay attention to. CPI, the consumer Price index, for June is

:09:33. > :09:39.expected to go up 1.7%. That is good but lower than 1.9% increase we saw

:09:40. > :09:44.back in May. The core CPI, which strips out food and energy costs, is

:09:45. > :09:51.forecast to go up 1.7% on a year-on-year basis after making a

:09:52. > :09:54.similar game in May. Also coming out our retail sales numbers, and it

:09:55. > :10:00.seems it may have gone up just a bit in the last month. After falling in

:10:01. > :10:05.May. Call retail sales, sales excluding autos and building

:10:06. > :10:10.materials, gas and food services, forecast to go up about 0.3% for

:10:11. > :10:16.June. Finally, PNC financial services group based in Pittsburgh,

:10:17. > :10:21.Pennsylvania, is expected to report a rise in quarterly profit topped by

:10:22. > :10:22.a higher interest rate income and higher income from commissions and

:10:23. > :10:23.fees. Joining us is Lucy MacDonald,

:10:24. > :10:25.chief investment officer in global equities at

:10:26. > :10:36.Allianz Global Investors. Let's start with the Nasdaq, I'm not

:10:37. > :10:39.sure if it was you or someone else in the studio a few weeks ago, we

:10:40. > :10:45.were discussing issues with the Nasdaq starting to fall off, but it

:10:46. > :10:50.seems to be ticking back up again? Yes, it is the strongest sector in

:10:51. > :10:54.the markets this year, up about 16%. Markets generally in the US sector

:10:55. > :11:00.at nine so it has definitely been the place to be. But it is not that

:11:01. > :11:04.much more expensive because underlying earnings have

:11:05. > :11:07.outperformed as well and as we go into the season when investors focus

:11:08. > :11:12.on seeing how deliverable high levels of growth are, so you see

:11:13. > :11:19.Facebook growing 30%, Amazon a similar level, and the whole issue

:11:20. > :11:23.is whether that rate of growth can be sustained, said that is what we

:11:24. > :11:26.will all be looking at, seeing how that plays out. And that will depend

:11:27. > :11:31.on innovations coming through down the line. It is unlikely there will

:11:32. > :11:39.be key disrupters eating away at those big players' earnings. It is

:11:40. > :11:42.very hard to compete? The rate of mobile and digital advertising is

:11:43. > :11:46.what is driving Facebook in particular and you can see that is

:11:47. > :11:50.still growing very quickly so the demand is still there. You should

:11:51. > :11:54.get some warning if it is going to slow down, you would think, because

:11:55. > :11:58.we do get quite regular updates. But that will be the focus for

:11:59. > :12:02.investors. Let's talk about Janet Yellen, head of the US Federal

:12:03. > :12:12.reserve, she has been speaking this week. What did she say that piqued

:12:13. > :12:14.your interest? She slightly changed her tone on inflation, which was

:12:15. > :12:19.interesting. The expectation has been that inflation will be trending

:12:20. > :12:23.slowly upwards but her description of it was slightly different, she

:12:24. > :12:29.was saying that maybe some of the downward issues are a bit more

:12:30. > :12:33.structural, she mentioned drug prices, so I think there is a bit of

:12:34. > :12:37.a change in tone there but still a bit of uncertainty about white wage

:12:38. > :12:42.inflation is so subdued and it is highly likely it could be technology

:12:43. > :12:48.but we don't really know at this stage so if we are a little bit in

:12:49. > :12:54.the dark, and I think the Fed is also just watching and seeing how

:12:55. > :12:57.things develop. Do you think this wage stagnation is why she said

:12:58. > :13:02.interest rates will rise but not as quickly as people thought initially?

:13:03. > :13:07.Exactly that, it has been a huge focus, seeing how employment is

:13:08. > :13:13.developing, that is one of the objectives of the Fed, employment as

:13:14. > :13:17.well as price stability, so watching the labour market and how it

:13:18. > :13:19.develops, something there is huge focus on, and they have been

:13:20. > :13:25.surprised about the fact that wages have not really followed up. OK,

:13:26. > :13:29.thank you very much for now, you will be coming back to blog about

:13:30. > :13:33.the papers' stories, particularly why we still need cash in our

:13:34. > :13:38.society after These are saying they want to aim towards a cashless

:13:39. > :13:42.society. We will have to see what you still need cash for.

:13:43. > :13:47.Certainly school fires! You have got to pay for your bouncy castle with

:13:48. > :13:48.cash! Not contactless, unless it is a very

:13:49. > :13:55.poor school!

:13:56. > :13:57.We will get the inside track on all the big stories of the week, still

:13:58. > :13:58.to come. You with Business Live from BBC

:13:59. > :14:02.News. A recent graduate from UCL has won

:14:03. > :14:07.the 2017 Wolfson Economics Prize. The competition posed the question,

:14:08. > :14:12."How can we pay for better, safer, more reliable roads in a way

:14:13. > :14:14.that is fair to road users and good for the economy

:14:15. > :14:19.and the environment?" The 27-year-old is the youngest

:14:20. > :14:22.winner of the ?250,000 prize. Well, let's find out

:14:23. > :14:25.more about the winner with the Wolfson prize

:14:26. > :14:35.director Julian Glover. What did he come up with, what was

:14:36. > :14:39.his key idea? His key idea was that way we pay for roads right now, the

:14:40. > :14:44.money is falling away, we have to get rid of it, scrap petrol tax,

:14:45. > :14:47.scrap the charger has in the UK to have a car on the road and come up

:14:48. > :14:52.with a simple, clear intelligent way to charge people as they drive, and

:14:53. > :14:54.not to load people with tonnes of technology and is systems, things

:14:55. > :15:15.that would cost a lot and be hard to introduce, but do it through

:15:16. > :15:18.insurance payments. We all make them at the moment, you could link it to

:15:19. > :15:20.distant and have a simple, clear bill, which would get more money

:15:21. > :15:22.into roads, fund them better, fix potholes which are a big problem,

:15:23. > :15:25.get them serviced properly, invest in new roads and without a huge

:15:26. > :15:28.piece of technology. Give us a sense of the importance of the prize, who

:15:29. > :15:30.has won it before with what ideas and have they been implemented? It

:15:31. > :15:33.is an important prize, a big prize, a quarter of ?1 million, and the aim

:15:34. > :15:35.is to take difficult policies, things Government are afraid to get

:15:36. > :15:39.involved in, politicians backed off but we know they need to be sorted

:15:40. > :15:41.out, so one of the once we had a couple of years ago was about

:15:42. > :15:53.housing, how do we build new housing in

:15:54. > :15:56.the UK which people are happy with, people who live nearby are happy

:15:57. > :15:59.with, we create decent communities without battles over planning, which

:16:00. > :16:02.seems to be the way we do it. That put forward new ideas for shaping

:16:03. > :16:05.the city of Oxford and people in Oxford are working on that now, and

:16:06. > :16:07.I hope with this roads prize, in Government there is huge amounts of

:16:08. > :16:09.interest so it is not just about publishing an idea and leaving it

:16:10. > :16:12.but getting inside Government, working with politicians and drawing

:16:13. > :16:14.on some other ideas. We had 120 ideas from around the world,

:16:15. > :16:19.America, Australia, Asia, getting the best of their thought as well,

:16:20. > :16:22.work and good Government in the UK and elsewhere to sort out the

:16:23. > :16:25.problem. Julian Gover, wolves and prize director, thank you for your

:16:26. > :16:29.time. That winning prize that he could get

:16:30. > :16:34.rid of Britain's potholes within five years, quite a challenge!

:16:35. > :16:40.Interesting to see how things will change with electric cars.

:16:41. > :16:54.Investors are watching Wall Street, where three of America's largest

:16:55. > :16:55.banks are due to publish their latest results shortly.

:16:56. > :16:59.A quick look at how markets are faring....

:17:00. > :17:06.It is Bastille Day Lynne France, a public holiday, but the CAC 40 is

:17:07. > :17:08.still open, it is the only market in the green, it is up 0.15%.

:17:09. > :17:11.And now let's get the inside track on all the big economic

:17:12. > :17:15.Starting right here in the UK where the public spending watchdog

:17:16. > :17:18.is warning that the UK's finances are in something of a perlious state

:17:19. > :17:21.and that Brexit is making the risks all the greater.

:17:22. > :17:24.Our economics editor Kamal Ahmed is here.

:17:25. > :17:32.Kamal, let's talk about these warnings. Interestingly, the Office

:17:33. > :17:35.for Budget Responsibility, OBR, said it is not necessarily the Brexit

:17:36. > :17:39.divorce bill which could be the sticking point, it is more the

:17:40. > :17:44.trading relationship going forward? It said the divorce Bill, if it is

:17:45. > :17:47.the size and people think, which might be like 70 billion euros to

:17:48. > :17:52.100 billion euros, would be a one-off head to the public finances

:17:53. > :18:01.but not substantial. Of much more concern is Britain's ongoing

:18:02. > :18:02.economic relationship with the rest of the EU, Britain's largest trading

:18:03. > :18:04.partner. What is interesting about the OBR

:18:05. > :18:09.report, the International Monetary Fund has said all countries should

:18:10. > :18:13.look at what they call fiscal risks. The US desert, Australia doesn't,

:18:14. > :18:17.Canada does it. It is about understanding, if there is a big

:18:18. > :18:20.shock, how well-prepared is your Government and your public finances

:18:21. > :18:25.to combat those risks? What they have found for the UK, this is very

:18:26. > :18:29.similar to so many western economies, high levels of debt,

:18:30. > :18:39.still running a deficit. If there is a shock to the system, like a Brexit

:18:40. > :18:42.shop, or a new housing crisis if house prices slump, a recession, how

:18:43. > :18:45.fixed with those economies be to be able to act on those? We have been

:18:46. > :18:50.in a situation where there is not a lot of money left on the banks. I

:18:51. > :18:56.spoke to Robert Choate, the head of the OBR, yesterday. He said raging

:18:57. > :18:58.population will pose a big fiscal risk, health, it is something

:18:59. > :19:03.perhaps people are not thinking about with the focus on Brexit -- he

:19:04. > :19:10.has said an ageing population will pose a big physical. Brexit is a

:19:11. > :19:13.short, medium and long-term issue. It ageing populations, health and

:19:14. > :19:18.social care needs, they are challenges for all governments, how

:19:19. > :19:23.to fund the fact that we live, frankly, a lot longer and health

:19:24. > :19:28.costs are rising rapidly. Stephen King, the HSBC economist, said what

:19:29. > :19:33.happens when the money runs out? The problem is we are not yet clear. We

:19:34. > :19:37.are in an ultra-loose monetary situation with very low interest

:19:38. > :19:43.rates. But there is no more of that available if there is a big problem

:19:44. > :19:47.in the economy. Let's talk about protectionism, we had headlines this

:19:48. > :19:52.week, Germany is tightening the rules on takeovers by non-EU

:19:53. > :19:57.companies? It is an interesting debate, is the world becoming more

:19:58. > :20:01.protectionist, should it become more globalised? Germany made an

:20:02. > :20:07.announcement this week that it will have more control over takeovers,

:20:08. > :20:11.particularly when they describe there is technology at stake in

:20:12. > :20:16.Germany could lose intellectual protection over the property it has.

:20:17. > :20:19.With one hand Chancellor Angela Merkel says we need to be free

:20:20. > :20:23.trade, but all economies are national and all governments have to

:20:24. > :20:28.face their national populations, their voters, so with one voice they

:20:29. > :20:32.say we should be more open, but the facts on the ground are often much

:20:33. > :20:36.more protectionist. There are six on the other side, the EU has just

:20:37. > :20:40.signed an outlying free trade agreement with Japan. We have seen

:20:41. > :20:45.President Trump has been here with President Macron affronts, no real

:20:46. > :20:50.trade announcements came out of that. We know America has already

:20:51. > :20:57.pulled out of the transatlantic possible deal between the EU and a

:20:58. > :21:00.yes -- and the US. There is a concern that globalisation has too

:21:01. > :21:05.many behind and people voted for people like Donald Trump because

:21:06. > :21:08.they were worried about it. Lots of is out there, this latest German

:21:09. > :21:14.move is about protecting home markets. Most people warned that if

:21:15. > :21:18.you do that to too great an extent, it will be damaging to the global

:21:19. > :21:23.economy. You had a story about China putting

:21:24. > :21:27.$53 billion back into the banking system, which was a bit of a U-turn?

:21:28. > :21:32.China has been signalling it might be tightening the way it regulates

:21:33. > :21:37.banks and the amount of support for banks, but the Chinese central bank,

:21:38. > :21:42.too much relief to many who watched the Chinese economy, has announced a

:21:43. > :21:45.new injection of cash. Some of the banking regulations they announced

:21:46. > :21:49.will be delayed. Of course Chinese banks are carrying a huge amount of

:21:50. > :21:53.debt, if they are seen as a problem it can be damaging to the Chinese

:21:54. > :21:58.economy, and anything damaging to the Chinese economy is damaging to

:21:59. > :22:02.the global economy, so some relief at the slight monetary loosening.

:22:03. > :22:04.Thank you for coming in and casting some for us.

:22:05. > :22:08.Who needs four wheels when you can have three?

:22:09. > :22:11.The tuk-tuk or auto-rickshaw started life in Italy in 1947 but now

:22:12. > :22:16.dominates Asian roads from India to Indonesia to Thailand.

:22:17. > :22:18.Now Indian manufacturer ATUL is punting the little

:22:19. > :22:20.machine as a cheap solution to Africa's transport problems.

:22:21. > :22:22.It has set up assembly plants across the continent.

:22:23. > :22:26.We went to one in Port Elizabeth, South Africa.

:22:27. > :22:34.Behind me other vehicles in the condition which they arrived from

:22:35. > :22:38.India, then they are flown into a full manual assembly line. That

:22:39. > :22:42.assembly line is purposely designed in that manner because it creates

:22:43. > :22:46.employment and gives us the necessary personal controls in the

:22:47. > :22:51.assembly line. The top three in our check list, the first one being

:22:52. > :22:56.unemployment. The second is the ability to empower people to start

:22:57. > :23:00.micro-businesses, not only locally in metropolitan areas but also rural

:23:01. > :23:05.areas. Thirdly, the contribution to society. The whole idea is to try to

:23:06. > :23:13.get different vehicles to provide specific services to these

:23:14. > :23:23.communities. All we are trying to do with this vehicles is to ensure that

:23:24. > :23:26.those communities... We have game plans to navigate those areas, they

:23:27. > :23:28.are the responses to the problems we have seen. It has happened almost

:23:29. > :23:30.throughout Africa. What other business

:23:31. > :23:32.stories has the media been Lucy MacDonald, Chief Investment

:23:33. > :23:35.Officer, Global Equities at Allianz Global Investors

:23:36. > :23:46.is joining us again to discuss. Lukey, let's talk about a story to

:23:47. > :23:54.do with the Financial Conduct Authority in the UK, changing the

:23:55. > :23:58.rules about a possible listing. Why is it significant? Because of the

:23:59. > :24:02.reputation of the UK is having some of the highest levels of corporate

:24:03. > :24:10.governance in the world. That is quite a hard one... A hard

:24:11. > :24:17.reputation. So for that reason, investors are very interested to see

:24:18. > :24:23.that is maintained. And this change of a new type of premium listing,

:24:24. > :24:28.that is a normal listing on the stock markets, this would be a

:24:29. > :24:36.different sort, specifically for sovereigns. With lower standards of

:24:37. > :24:43.governance, lower standards of investors being able to influence

:24:44. > :24:47.the independent directors and also of transactions within the company.

:24:48. > :24:52.Why do you think they are so prepared to bend the rules? Why do

:24:53. > :24:56.they want Aramco's listings so badly on the London stock exchange?

:24:57. > :25:01.Commercial reasons. It is going to be huge. We are not sure how huge,

:25:02. > :25:07.but if it were even half of the 2 trillion mentioned, it is very

:25:08. > :25:13.significant. Let's talk about the new incentive unveiled by Visa to

:25:14. > :25:15.push cashless transactions. We asked why you still need cash.

:25:16. > :25:18.Our friend Jeremy from World First says, "Can't flick a debit card

:25:19. > :25:30.Liz says car park machines, vending machines, farmers market, pocket

:25:31. > :25:39.many decades, car boot school payments. There is a psychological

:25:40. > :25:45.view about cash, people using cash are more careful about what they

:25:46. > :25:52.spend. Removing it completely, about 30% of transactions is cash, if you

:25:53. > :25:53.remove it completely there could be more of a consumer credit problem

:25:54. > :25:54.than already. Kerry says, "Because technology

:25:55. > :25:56.often doesn't work and you're left holding a bit of plastic

:25:57. > :26:05.and no options." And you spend more. Thank you for

:26:06. > :26:10.coming on to the programme, Fed. Enjoy spending your money, whether

:26:11. > :26:15.it is cash or card, this weekend. Good morning. There is a fair bit of

:26:16. > :26:19.cloud this morning, with 12-macro showers. Conditions improving

:26:20. > :26:20.through the day, becoming mainly